Session Law

Identifying Information:L. 2002 ch. 120
Other Identifying Information:2002 House Bill 2690*
Tax Type:Other
Brief Description:An Act concerning the state board of regents; relating to scientific research and development facilities for educational institutions under the control and supervision of the state board of regents.
Keywords:


Body:

CHAPTER 120

HOUSE BILL No. 2690*


An Act concerning the state board of regents; relating to scientific research and develop-

ment facilities for educational institutions under the control and supervision of the state


board of regents.


Be it enacted by the Legislature of the State of Kansas:

Section 1. Sections 1 through 12 and amendments thereto shall be

known and may be cited as the university research and development en-

hancement act.

Sec. 2. (a) The legislature of the state of Kansas hereby finds and

declares that:

(1) The performance of scientific research is essential to promote the

economic development of the state; and

(2) the needs of the citizens of the state of Kansas and of the state

educational institutions under the control and supervision of the board of

regents will be best served if the board of regents is granted specific

authority to assist the state educational institutions in the provision of

scientific research.

(b) The exercise of the powers authorized by this act are deemed an

essential governmental function in matters of public necessity for the

entire state in the provision of scientific research.

Sec. 3. As used in this act, the following words and phrases have the

following meanings unless a different meaning clearly appears from the

content:

(a) ``Board of regents'' means the state board of regents of the state

of Kansas established by K.S.A. 2001 Supp. 74-3202a and amendments

thereto.

(b) ``Bonds'' means any bonds, notes, lease certificates of participa-

tion or other evidences of indebtedness, whether or not the interest on

which is subject to federal income taxation, issued by the Kansas devel-

opment finance authority on behalf of the board of regents pursuant to

this act to finance a scientific research and development facility.

(c) ``Scientific research and development facility'' means any facility,

including real and personal property, for which the primary purpose is to

promote scientific research and development and which is under the con-

trol of a state educational institution.

(d) ``State'' means the state of Kansas.

(e) ``State educational institution'' means any Fort Hays state univer-

sity, Emporia state university, Pittsburg state university, Kansas state uni-

versity of agriculture and applied science, university of Kansas, university

of Kansas medical center and Wichita state university.

(f) ``This act'' means the university research and development en-

hancement act.

Sec. 4. The board of regents shall have all the powers necessary to

carry out the purposes and provisions of this act, including, without lim-

itation, the following powers:

(a) To make and execute contracts, guarantees or any other instru-

ments and agreements necessary or convenient for the exercise of its

powers and functions under authority of this act including, without lim-

itation, the power to make and execute contracts with respect to the

operation and management of scientific research and development facil-

ities;

(b) to borrow money from the Kansas development finance authority

to finance the costs of acquiring, constructing and equipping scientific

research and development facilities and to pledge any or all revenues

derived from any scientific research and development facilities to the

repayment of such borrowed money, including moneys credited to the

sponsored research overhead funds and other special revenue funds of

the state educational institutions having jurisdiction over such scientific

research and development facilities;

(c) to purchase, lease, trade, exchange or otherwise acquire, maintain,

hold, improve, mortgage, sell, lease, and dispose of scientific research and

development facilities and any interest therein and to maintain, hold,

improve, mortgage, lease and otherwise transfer such scientific research

and development facilities;

(d) to contract for and to accept any gifts, grants and loans of funds,

property, or any other aid in any form from the federal government, the

state, any state agency, or any other source, or any combination thereof,

and to comply with the provisions of the terms and conditions thereof;

(e) to acquire space, equipment, services, supplies and insurance nec-

essary to carry out the purposes of this act, except that scientific research

and development facilities shall be included under insurance coverage

acquired for state buildings and facilities;

(f) do any and all things necessary or convenient to exercise the pow-

ers authorized by this act; and

(g) to participate in joint ventures with individuals, corporations, gov-

ernmental bodies or agencies, partnerships, associations, insurers or other

entities to facilitate any activities or programs consistent with the public

purpose and intent of this act.

Sec. 5. The board of regents is hereby authorized and shall form one

subsidiary corporation under K.S.A. 17-6001 et seq., and amendments

thereto, in accordance with the procedures therein contained, to perform

or to assist the board of regents in the performance of powers, duties and

functions under this act. The subsidiary corporation shall be subject to

the same restrictions and limitations as to the powers and purposes under

this act to which the board of regents is subject. The board of regents

may delegate any of its powers, obligations and duties under this act to

the subsidiary corporation by inclusion of such powers, obligations and

duties in the articles of incorporation of the subsidiary corporation. The

subsidiary corporation so formed shall constitute a legal entity separate

and distinct from the board of regents and the state. The board of regents

shall not be liable for the debts or obligations or for any actions or inac-

tions of its subsidiary corporation unless the board of regents expressly

agrees otherwise in writing. The board of directors of the subsidiary cor-

poration shall be composed of seven voting members and one nonvoting

member. The seven voting members shall be appointed as follows: (1)

One voting member shall be appointed by the speaker of the house of

representatives, (2) one voting member shall be appointed by the minority

leader of the house of representatives, (3) one voting member shall be

appointed by the president of the senate, (4) one voting member shall be

appointed by the minority leader of the senate, and (5) three voting mem-

bers shall be appointed by the board of regents. Each voting member of

the board of directors shall serve at the pleasure of the officer or board

making the appointment. The voting members appointed by the speaker

of the house of representatives, the minority leader of the house of rep-

resentatives, the president of the senate and minority leader of the senate

may be, but are not required to be, members of the legislature. Of the

three voting members appointed by the board of regents, not more than

two may be members of the board of regents. Any vacancy occurring in

the board of directors shall be filled in the same manner as the original

appointment. The secretary of administration, or the secretary's designee

who shall serve at the pleasure of the secretary of administration, shall

serve as the nonvoting member of the board of directors. All members

of the board of directors shall serve without compensation. Each member

of the board of directors shall be appointed on or before 60 days following

the effective date of this act. After all members have been appointed, the

executive director of the state board of regents shall call the first organ-

izational meeting of the board of directors. The executive director of the

state board of regents shall serve as the temporary, nonvoting chairperson

at the first organizational meeting until a chairperson is elected as pro-

vided by this section. The members of the board of directors shall organ-

ize by electing from its membership a chairperson and a vice-chairperson.

The vice-chairperson shall exercise all of the powers of the chairperson

in the absence of the chairperson. Any vacancy occurring in the chair-

person or vice-chairperson positions shall be filled in the same manner

as the original election. The state, any municipality or any state commis-

sion, public authority, agency, officer, department, board or division au-

thorized and empowered to enter into agreements with, to grant, convey,

lease or otherwise transfer any property to, or to otherwise transact busi-

ness with the board of regents, shall have the same authorization and

power to engage in these activities with the subsidiary corporation of the

board of regents. The subsidiary corporation formed pursuant to this sec-

tion shall be dissolved by the board of regents after completion and official

acceptance by the board of regents of all of the capital improvement

projects initiated for research and development facilities for state edu-

cational institutions under this act or at such earlier time as may be pre-

scribed or determined in accordance with the provisions of the articles

of incorporation of the subsidiary corporation.

Sec. 6. (a) The board of regents is authorized to acquire, construct

and equip scientific research and development facilities on state-owned

property of the board of regents or any state educational institution for

purposes of scientific research from any moneys of the board of regents

available therefor, except that no such scientific research and develop-

ment facilities shall be acquired, constructed or equipped and no moneys

shall be expended therefor unless the board of regents has first advised

and consulted with the joint committee on state building construction

regarding the proposed scientific research and development facilities and

on each capital improvement project proposed therefor. The scientific

research and development facilities shall become the property of the state

upon completion and acceptance by the board of regents.

(b) The board of regents is authorized to initiate and complete capital

improvement projects to repair, remodel or renovate state buildings and

facilities of the state educational institutions for use as scientific research

and development facilities from any moneys of the board of regents, ex-

cept that no such capital improvement project for such repair, remodeling

or renovation shall be initiated unless the board of regents has first ad-

vised and consulted with the joint committee on state building construc-

tion regarding the proposed scientific research and development facilities

and each capital improvement project proposed therefor.

Sec. 7. (a) (1) The Kansas development finance authority is hereby

authorized to issue from time to time bonds on behalf of the board of

regents in such principal amounts as the Kansas development finance

authority and the board of regents determine to be necessary to provide

sufficient funds to finance scientific research and development facilities,

including, but not limited to, the payment of interest on such bonds, the

establishment of reserves to secure such bonds, costs of issuance, re-

funding any outstanding bonds, and all other expenditures of the board

of regents incident to and necessary or convenient to carry out the powers

and functions authorized by this act. The Kansas development finance

authority shall not issue any bond or bonds on behalf of the corporation

formed by the board of regents under this act. The Kansas development

finance authority shall not issue bonds under this act for more than

$120,000,000, in the aggregate, plus all amounts required for costs of any

bond issuance, costs of interest on any bond issued or obtained for such

scientific research and development facilities and any required reserves

for payment of principal and interest on any such bond.

(2) Except as may otherwise be expressly provided by the board of

regents, every obligation of the board of regents with respect to such

bonds shall be an obligation of the board of regents payable out of any

revenues or moneys of the board of regents derived from annual appro-

priations of the legislature. Subject only to any agreements with holders

of particular bonds pledging any particular revenues, the board of regents

shall use moneys derived from scientific research and development facil-

ities to provide funds sufficient to pay principal and interest on any bonds

issued pursuant to this act commencing after the date a project is com-

pleted and has been accepted by the board of regents. Subject to the

provisions of appropriation acts, payment of principal and interest on the

bonds shall be made by the state board of regents from annual appro-

priations by the legislature from such revenues as are furnished by the

board of regents, or from any other available funds, in amounts sufficient

to pay principal and interest on the bonds until the bonds are finally paid.

(3) Upon acceptance by the board of regents of each project initiated

and completed under this act and upon a determination by the board of

regents that the period for repayment of debt for such project is to com-

mence, the board of regents shall certify to the director of accounts and

reports that principal and interest payments for such project are to com-

mence and the dates and amounts of all principal and interest payments

for such project. Pursuant to each such certification and commencing on

or after July 1, 2004, the director of accounts and reports shall transfer,

from the state general fund to the debt service fund or funds at a state

educational institution as specified in the certification for such project,

the amount certified on or before the respective payment date therefor.

Transfers shall be made under this section pursuant to any such certifi-

cation on or after July 1, 2004. The aggregate of all such transfers from

the state general fund during any fiscal year shall not exceed $10,000,000

and the aggregate of all such transfers from the state general fund under

this section shall not exceed $50,000,000. The Kansas development fi-

nance authority and the board of regents shall enter into contracts with

respect to the scientific research and development facilities financed un-

der this act prescribing the obligation of the board of regents and the

state educational institutions to provide for repayment of amounts of bond

debt service in addition to those amounts provided for by transfers under

this section from the state general fund.

(b) (1) The bonds shall be authorized by a resolution adopted by the

board of directors of the Kansas development finance authority.

(2) Except as otherwise provided in this act, bonds issued by the

Kansas development finance authority under authority of this act shall be

subject to the provisions of K.S.A. 74-8901 et seq., and amendments

thereto.

(c) Any resolution authorizing the board of regents to incur any ob-

ligation with respect to bonds issued by the Kansas development finance

authority may contain such provisions as deemed appropriate by the

board of regents for the purpose of carrying out the purposes of this act

and securing such bonds, which shall be a part of the contract with the

holders thereof, including, but not limited to, provisions:

(1) Pledging all or any part of the revenues of the board of regents

derived from scientific research and development facilities to secure the

payment of the bonds or of any issue thereof, subject to such agreements

with bondholders as may then exist;

(2) the setting aside of reserves or sinking funds and the regulation

and disposition thereof;

(3) limitations on the issuance of additional bonds or other obliga-

tions, the terms upon which additional bonds or obligations may be issued

and secured, and the refunding of outstanding or other bonds;

(4) defining the acts or omissions to act which shall constitute a de-

fault in the obligations and duties of the board of regents to the Kansas

development finance authority, the applicable bond trustee or the holders

of the bonds, except that such rights and remedies shall not be inconsis-

tent with the general laws of this state and the other provisions of this

act; and

(5) any other matters, of like or different character, which in any way

affect the security or protection of the holders of the notes or bonds.

(d) Any of the provisions relating to any bonds described in this sec-

tion may be set forth in a trust indenture, loan agreement, lease agree-

ment or other financing document authorized by a resolution of the board

of regents or the board of directors of the Kansas development finance

authority.

(e) The bonds of each issue may, in the discretion of the board of

directors of the Kansas development finance authority, be made redeem-

able before maturity at such prices and under such terms and conditions

as may be determined by the board of directors of the Kansas develop-

ment finance authority. Bonds issued on behalf of the board of regents

shall mature at such time, not exceeding 30 years from their date of issue,

as may be determined by the board of regents and the board of directors

of the Kansas development finance authority. The bonds may be issued

as serial bonds payable in annual installments or as term bonds or as a

combination thereof. The bonds shall bear interest at such rate either

fixed or variable, be in such denominations, be in such form, either cou-

pon or registered, carry such registration privileges, be executed in such

manner, be payable in such medium of payment and at such place, and

be subject to such terms of redemption as provided in the resolution of

trust indenture. The bonds may be sold by the Kansas development fi-

nance authority, at public or private sale, at such price as the board of

directors of the Kansas development finance authority shall determine.

(f) In case any officer of the Kansas development finance authority

whose signature or a facsimile of whose signature appears on any bonds

or coupons attached thereto ceases to be such officer before the delivery

thereof, such signature or such facsimile shall nevertheless be valid and

sufficient for all purposes the same as if such officer had remained in

office until such delivery.

(g) Any bonds issued by the Kansas development finance authority

pursuant to this section, and the income therefrom (including any profit

from the sale thereof) shall at all times be free from taxation by the state

or any agency, political subdivision or instrumentality of the state, includ-

ing income, inheritance and property taxes.

(h) Any holder of bonds issued under the provisions of this act, or

any coupons appertaining thereto and the trustee under any trust agree-

ment or resolution authorizing the issuance of such bonds, except the

rights under this act may be restricted by such trust agreement or reso-

lution, may, either at law or in equity by suit, action, mandamus or other

proceeding, protect and enforce any and all rights under the laws of the

state or granted under this act or under such agreement or resolution, or

under any other contract executed by the board of regents pursuant to

this act, and may enforce and compel the performance of all duties re-

quired by this act or by such trust agreement or resolution to be per-

formed by the board of regents or by an officer thereof.

(i) the bonds shall be special, limited obligations of the Kansas de-

velopment finance authority and the state shall not be liable for bonds

issued by the Kansas development finance authority on behalf of the

board of regents, and such bonds shall not constitute a debt of the state.

(j) Neither the board of regents, the board of the Kansas develop-

ment finance authority nor any authorized employee of the board of re-

gents or the Kansas development finance authority shall be personally

liable for such bonds by reason of the issuance thereof.

(k) Nothing in this act shall be construed as a restriction or limitation

upon any other powers which the board of regents might otherwise have

under any other law of this state, and this act is cumulative to any such

powers. This act does and shall be construed to provide a complete, ad-

ditional and alternative method for the doing of the things authorized

thereby and shall be regarded as supplemental and additional to powers

conferred by other laws. The issuance of bonds under the provisions of

this act need not comply with the requirements of any other state law

applicable to the issuance of bonds. No proceedings, notice or approval

shall be required for the issuance of any bonds or any instrument as

security therefor, except as is provided in this act.

(l) Any of the provisions relating to bonds described in this section

may be included in any contracts between the board of regents and the

Kansas development finance authority relating to obligations of the Kan-

sas development finance authority issued on behalf of the board of re-

gents.

Sec. 8. Purchases by the board of regents relating to scientific re-

search and development facilities shall not be subject to sales tax under

K.S.A. 79-3601 et seq., and amendments thereto, or use tax under K.S.A.

79-3701 et seq., and amendments thereto.

Sec. 9. This act shall be liberally construed. Except as otherwise ex-

pressly provided, nothing contained in this act is or shall be construed as

a restriction or limitation upon any powers which the board of regents or

the Kansas development finance authority might otherwise have under

other law of this state, and the provisions of this act are cumulative to

such powers. The provisions of this act do and shall be construed to

provide a complete, additional and alternative method for the doing of

the things authorized and shall be regarded as supplemental and addi-

tional to any other laws. Insofar as the provisions of this act are inconsis-

tent with the provisions of any other law, general, specific or local, the

provisions of this act shall be controlling.

Sec. 10. (a) As used in this section, unless the context expressly pro-

vides otherwise:

(1) ``Ancillary technical services'' include, but shall not be limited to,

geology services and other soil or subsurface investigation and testing

services, surveying, adjusting and balancing of air conditioning, ventilat-

ing, heating and other mechanical building systems, testing and consultant

services that are determined by the board of regents to be required for

a project;

(2) ``architectural services'' means those services described by sub-

section (e) of K.S.A. 74-7003, and amendments thereto;

(3) ``construction services'' means the work performed by a construc-

tion contractor to commence and complete a project;

(4) ``construction management at-risk services'' means the services

provided by a firm which has entered into a contract with the board of

regents to be the construction manager at risk for the value and schedule

of the contract for a project, which is to hold the trade contracts and

execute the work for a project in a manner similar to a general contractor

and which is required to solicit competitive bids for the trade packages

developed for a project and to enter into the trade contracts for a project

with the lowest responsible bidder therefor, and may include, but are not

limited to, such services as scheduling, value analysis, systems analysis,

constructability reviews, progress document reviews, subcontractor in-

volvement and prequalification, subcontractor bonding policy, budgeting

and price guarantees, and construction coordination;

(5) ``division of facilities management'' means the division of facilities

management of the department of administration;

(6) ``engineering services'' means those services described by subsec-

tion (i) of K.S.A. 74-7003, and amendments thereto;

(7) ``firm'' means (A) with respect to architectural services, an indi-

vidual, firm, partnership, corporation, association or other legal entity

which is: (i) permitted by law to practice the profession of architecture;

and (ii) maintaining an office in Kansas staffed by one or more architects

who are licensed by the board of technical professions; or (iii) not main-

taining an office in Kansas, but which is qualified to perform special ar-

chitectural services that are required in special cases where in the judg-

ment of the board of regents it is necessary to go outside the state to

obtain such services; (B) with respect to engineering services or land

surveying, an individual, firm, partnership, corporation, association or

other legal entity permitted by law to practice the profession of engi-

neering and provide engineering services or practice the profession of

land surveying and provide land surveying services, respectively; (C) with

respect to construction management at-risk services, a qualified individ-

ual, firm, partnership, corporation, association or other legal entity per-

mitted by law to perform construction management at-risk services; (D)

with respect to ancillary technical services or other services that are de-

termined by the board of regents to be required for a project, a qualified

individual, firm, partnership, corporation, association or other legal entity

permitted by law to practice the required profession or perform the other

required services, as determined by the board of regents; and (E) with

respect to construction services, a qualified individual, firm, partnership,

corporation, association, or other legal entity permitted by law to perform

construction services for a project;

(8) ``land surveying'' means those services described in subsection (j)

of K.S.A. 74-7003, and amendments thereto;

(9) ``negotiating committee'' means the board of directors of the sub-

sidiary corporation formed under section 5, and amendments thereto;

(10) ``project'' means (A) the project for the KSU food safety and

security research facility, (B) the project for the KUMC biomedical re-

search facility, (C) the project for the WSU engineering complex expan-

sion and research laboratory, or (D) the project for the acquisition and

installation of equipment for the KU biosciences research building, which

are funded from the proceeds of the bonds authorized to be issued under

section 7, and amendments thereto, within the limitation of $120,000,000,

in the aggregate, plus all amounts required for costs of any bond issuance,

costs of interest on any bond issued or obtained for such scientific re-

search and development facilities and any required reserves for payment

of principal and interest on any such bond, and from any moneys received

as gifts, grants or otherwise from any public or private nonstate source;

(11) ``project services'' means architectural services, engineering

services, land surveying, construction management at-risk services, con-

struction services, ancillary technical services or other construction-re-

lated services determined by the board of regents to be required for a

project; and

(12) ``state building advisory commission'' means the state building

advisory commission created by K.S.A. 75-3780, and amendments

thereto.

(b) The board of regents, when acting under authority of this act, and

each project authorized by the board of regents under this act are exempt

from the provisions of K.S.A. 75-1269, 75-3738 through 75-3741b, 75-

3742 through 75-3744, and 75-3783, and amendments thereto, except as

otherwise specifically provided by this act.

(c) Notwithstanding the provisions of K.S.A. 75-3738 through 75-

3744, and amendments thereto, or the provisions of any other statute to

the contrary, all contracts for any supplies, materials or equipment for a

project authorized by the board of regents under this act, shall be entered

into in accordance with procurement procedures determined by the

board of regents, subject to the provisions of this section, except that, in

the discretion of the board of regents, any such contract may be entered

into in the manner provided in and subject to the provisions of any such

statute otherwise applicable thereto. Notwithstanding the provisions of

K.S.A. 75-3738 through 75-3744, and amendments thereto, if the board

of regents does not obtain construction management at-risk services for

a project, the construction services for such project shall be obtained

pursuant to competitive bids and all contracts for construction services

for such project shall be awarded to the lowest responsible bidder in

accordance with procurement procedures determined and administered

by the board of regents which shall be consistent with the provisions of

K.S.A. 75-3738 through 75-3744, and amendments thereto.

(d) When it is necessary in the judgment of the board of regents to

obtain project services for a particular project by conducting negotiations

therefor, the board of regents shall publish a notice of the commence-

ment of negotiations for the required project services at least 15 days

prior to the commencement of such negotiations in the Kansas register

in accordance with K.S.A. 75-430a, and amendments thereto, and in such

other appropriate manner as may be determined by the board of regents.

(e) (1) Notwithstanding the provisions of subsection (b) of K.S.A. 75-

1251, and amendments thereto, or the provisions of any other statute to

the contrary, as used in K.S.A. 75-1250 through 75-1270, and amend-

ments thereto, with respect to the procurement of architectural services

for a project authorized by the board of regents under this act, ``negoti-

ating committee'' shall mean the board of directors of the subsidiary cor-

poration formed under section 5, and amendments thereto, and such

board of directors shall negotiate a contract with a firm to provide any

required architectural services for the project in accordance with the pro-

visions of K.S.A. 75-1250 through 75-1270, and amendments thereto,

except that no limitation on the fees for architectural services for the

project shall apply to the fees negotiated by the board of directors for

such architectural services.

(2) Notwithstanding the provisions of subsection (e) of K.S.A. 75-

5802, and amendments thereto, or the provisions of any other statute to

the contrary, as used in K.S.A. 75-5801 through 75-5807, and amend-

ments thereto, with respect to the procurement of engineering services

or land surveying services for a project authorized by the board of regents

under this act, ``negotiating committee'' shall mean the board of directors

of the subsidiary corporation formed under section 5, and amendments

thereto, and such board of directors shall negotiate a contract with a firm

to provide any required engineering services or land surveying services

for the project in accordance with the provisions of K.S.A. 75-5801

through 75-5807, and amendments thereto.

(3) In any case of a conflict between the provisions of this section and

the provisions of K.S.A. 75-1250 through 75-1270, or 75-5801 through

75-5807, and amendments thereto, with respect to a project authorized

by the board of regents under this act, the provisions of this section shall

govern.

(f) (1) For the procurement of construction management at-risk

services for projects under this act, the secretary of administration shall

encourage firms engaged in the performance of construction manage-

ment at-risk services to submit annually to the secretary of administration

and to the state building advisory commission a statement of qualifications

and performance data. Each statement shall include data relating to (A)

the firm's capacity and experience, including experience on similar or

related projects, (B) the capabilities and other qualifications of the firm's

personnel, and (C) performance data of all consultants the firm proposes

to use.

(2) Whenever the board of regents determines that a construction

manager at risk is required for a project under this act, the board of

regents shall notify the state building advisory commission and the state

building advisory commission shall prepare a list of at least three and not

more than five firms which are, in the opinion of the state building ad-

visory commission, qualified to serve as construction manager at risk for

the project. Such list shall be submitted to the negotiating committee,

without any recommendation of preference or other recommendation.

The negotiating committee shall have access to statements of qualifica-

tions of and performance data on the firms listed by the state building

advisory commission and all information and evaluations regarding such

firms gathered and developed by the secretary of administration under

K.S.A. 75-3783, and amendments thereto.

(3) The negotiating committee shall conduct discussions with each of

the firms so listed regarding the project. The negotiating committee shall

determine which construction management at-risk services are desired

and then shall proceed to negotiate with and attempt to enter into a

contract with the firm considered to be most qualified to serve as con-

struction manager at risk for the project. The negotiating committee shall

proceed in accordance with the same process with which negotiations are

undertaken to contract with a firm to be a project architect under K.S.A.

75-1257, and amendments thereto, to the extent that such provisions can

be made to apply. Should the negotiating committee be unable to ne-

gotiate a satisfactory contract with the firm considered to be most qual-

ified, negotiations with that firm shall be terminated and shall undertake

negotiations with the second most qualified firm, and so forth, in accord-

ance with that statute.

(4) The contract to perform construction management at-risk services

for a project shall be prepared by the division of facilities management

and entered into by the board of regents with the firm contracting to

perform such construction management at-risk services.

(g) (1) To assist in the procurement of construction services for pro-

jects under this act, the secretary of administration shall encourage firms

engaged in the performance of construction services to submit annually

to the secretary of administration and to the state building advisory com-

mission a statement of qualifications and performance data. Each state-

ment shall include data relating to (A) the firm's capacity and experience,

including experience on similar or related projects, (B) the capabilities

and other qualifications of the firm's personnel, (C) performance data of

all subcontractors the firm proposes to use, and (D) such other infor-

mation related to the qualifications and capability of the firm to perform

construction services for projects as may be prescribed by the secretary

of administration.

(2) The construction manager at risk shall publish a construction serv-

ices bid notice in the Kansas register and in such other appropriate man-

ner as may be determined by the board of regents. Each construction

services bid notice shall include the request for bids and other bidding

information prepared by the construction manager at risk and the state

board of regents with the assistance of the division of facilities manage-

ment. The current statements of qualifications of and performance data

on the firms submitting bid proposals shall be made available to the con-

struction manager at risk and the board of regents by the state building

advisory commission along with all information and evaluations developed

regarding such firms by the secretary of administration under K.S.A. 75-

3783, and amendments thereto. Each firm submitting a bid proposal shall

be bonded in accordance with K.S.A. 60-1111, and amendments thereto,

and shall present evidence of such bond to the construction manager at

risk prior to submitting a bid proposal. If a firm submitting a bid proposal

fails to present such evidence, such firm shall be deemed unqualified for

selection under this subsection. At the time for opening the bids, the

construction manager at risk shall evaluate the bids and shall determine

the lowest responsible bidder. The construction manager at risk shall

enter into contracts with each firm performing the construction services

for the project and make a public announcement of each firm selected

in accordance with this subsection.

(h) The division of facilities management shall provide such infor-

mation and assistance as may be requested by the board of regents or the

negotiating committee for a project, including all or part of any project

services as requested by the board of regents, and (1) shall prepare the

request for proposals and publication information for each publication of

notice under this section, subject to the provisions of this section, (2) shall

prepare each contract for project services for a project, including each

contract for construction services for a project, (3) shall conduct design

development reviews for each project, (4) shall review and approve all

construction documents for a project prior to soliciting bids or otherwise

soliciting proposals from construction contractors or construction service

providers for a project, (5) shall obtain and maintain copies of construc-

tion documents for each project, and (6) shall conduct periodic inspec-

tions of each project, including jointly conducting the final inspection of

each project.

(i) Notwithstanding the provisions of any other statute, the board of

regents shall enter into one or more contracts with the division of facilities

management for each project for the services performed by the division

of facilities management for the project as required by this section or at

the request of the board of regents. The division of facilities management

shall receive fees from the board of regents to recover the costs incurred

to provide such services pursuant to such contracts.

(j) Design development reviews and construction document reviews

conducted by the division of facilities management shall be limited to

ensuring only that the construction documents do not change the project

description and that the construction documents comply with the stan-

dards established under K.S.A. 75-3783, and amendments thereto, by the

secretary of administration for the planning, design and construction of

buildings and major repairs and improvements to buildings for state agen-

cies, including applicable building and life safety codes and appropriate

and practical energy conservation and efficiency standards.

(k) Each project for a state educational institution shall receive a final

joint inspection by the division of facilities management and the board of

regents. Each such project shall be officially accepted by the board of

regents before such project is occupied or utilized by the state educational

institution, unless otherwise agreed to in writing by the contractor and

the board of regents as to the satisfactory completion of the work on part

of the project that is to be occupied and utilized, including any corrections

of the work thereon.

(l) (1) The board of regents shall issue monthly reports of progress

on each project and shall advise and consult with the joint committee on

state building construction regarding each project. Change orders and

changes of plans for a project shall be authorized or approved by the

board of regents.

(2) No change order or change of plans for a project involving either

cost increases of $75,000 or more or involving a change in the proposed

use of a project shall be authorized or approved by the board of regents

without having first advised and consulted with the joint committee on

state building construction.

(3) Change orders or changes in plans for a project involving a cost

increase of less than $75,000 and any change order involving a cost re-

duction, other than a change in the proposed use of the project, may be

authorized or approved by the board of regents without prior consultation

with the joint committee on state building construction. The board of

regents shall report to the joint committee on state building construction

all action relating to such change orders or changes in plans.

(4) If the board of regents determines that it is in the best interest

of the state to authorize or approve a change order, a change in plans or

a change in the proposed use of any project that the board of regents is

required to first advise and consult with the joint committee on state

building construction prior to issuing such approval and if no meeting of

the joint committee is scheduled to take place within the next 10 business

days, then the board of regents may use the procedure authorized by

subsection (d) of K.S.A. 75-1264, and amendments thereto, in lieu of

advising and consulting with the joint committee at a meeting. In any

such case, the board of regents shall mail a summary description of the

proposed change order, change in plans or change in the proposed use

of any project to each member of the joint committee on state building

construction and to the director of the legislative research department.

If the board of regents provides notice and information to the members

of the joint committee and to such director in the manner required and

subject to the same provisions and conditions that apply to the secretary

of administration under such statute, and if less than two members of the

joint committee contact the director of the legislative research depart-

ment within seven business days of the date the summary description was

mailed and request a presentation and review of any such proposed

change order, change in plans or change in use at a meeting of the joint

committee, then the board of regents shall be deemed to have advised

and consulted with the joint committee about such proposed change or-

der, change in plans or change in proposed use and may authorize or

approve such proposed change order, change in plans or change in pro-

posed use.

(m) The provisions of this section shall apply to each project author-

ized by the board of regents under this act and shall not apply to any

other capital improvement project of the board of regents or of any state

educational institution that is specifically authorized by any other statute.

Sec. 11. (a) Each contract entered into by a state agency for any

nonfederal aid, public works project for a scientific research and devel-

opment facility under the university research and development enhance-

ment act shall be based on bid or contract specifications prescribing and

requiring that employees of any contractor or subcontractor shall be paid

not less than the hourly wages, including fringe benefits, paid to corre-

sponding classes of laborers and mechanics employed on similar projects

in the county where the project is to be performed. Such minimum wage

shall be the wage paid to the majority of the laborers or mechanics, unless

the same wages are not paid to a majority, in which case the minimum

wage shall be the average wages paid, weighted by the total employed in

the classification. In the alternative, the minimum wage shall be that

determined under federal law which would be required to be paid on

federally-funded projects at the location of the public works project.

(b) Employees employed by contractors or subcontractors in the ex-

ecution of any nonfederal aid, public works project contract subject to

this section with any state agency shall be paid not less than the wages as

determined pursuant to subsection (a).

(c) As used in this section, ``state agency'' means the board of regents,

the subsidiary corporation of the board of regents formed pursuant to

section 5, and amendments thereto, any firm performing construction

management at-risk services under section 10, and amendments thereto,

or any state educational institution.

(d) The provisions of this section shall apply only to contracts for the

following projects under the university research and development en-

hancement act: (1) The project for the KUMC bio-medical research fa-

cility, and (2) the project for the WSU engineering complex expansion

and research laboratory.

Sec. 12. If any provision of this act or any application thereof is held

invalid, the invalidity shall not affect other provisions or applications of

the act which can be given effect without the invalid provision or appli-

cation, and to this end the provisions of this act are severable.

Sec. 13. The state board of regents is hereby authorized to initiate

and complete capital improvement projects for the acquisition and in-

stallation of laboratories and equipment for icing and wind tunnels, crash

testing and advanced manufacturing, including associated construction,

remodeling or renovation, and such capital improvement projects are

hereby approved for the National Institute for Aviation Research for the

purposes of subsection (b) of K.S.A. 74-8905, and amendments thereto,

and the authorization of the issuance of bonds by the Kansas development

finance authority in accordance with that statute. In accordance with the

provisions of appropriation acts, the board of regents is hereby authorized

to make expenditures from the aviation research facility fund which is

hereby established in the state treasury for the acquisition, construction,

installation and equipment of the capital improvement projects author-

ized by this section. In accordance with the provisions of appropriation

acts, the board of regents may make expenditures from the aviation re-

search facility fund for the payment of debt service on any revenue bonds

issued to finance such project. The aggregate amount of all such revenue

bonds issued for such capital improvement project shall not exceed

$13,000,000, plus all amounts required for costs of bond issuance, costs

of interest on any bonds issued for such capital improvement project

during the period of acquisition, installation and construction, remodeling

or renovation for such project and any required reserve for the payment

of principal and interest on the bonds. All moneys received from the

issuance of any such bonds shall be deposited and accounted for as pre-

scribed by applicable bond covenants. Debt service for any such bonds

for such capital improvement project shall be financed by appropriations

from the state general fund or any appropriate special revenue fund or

funds, and shall be in addition to any other amounts authorized within

this act.

Sec. 14. This act shall take effect and be in force from and after its

publication in the Kansas register.

Approved May 16, 2002.

Published in the Kansas Register May 23, 2002.


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Date Composed: 10/10/2002 Date Modified: 10/10/2002