History: L. 1998, ch. 12, § 1; Feb. 26.
(1) Provision of health care is an essential governmental function protecting and promoting the health and welfare of the citizens of the state of Kansas;
(2) education of medical and health sciences professionals and the performance of medical and related research are essential to promote such health care;
(3) teaching hospitals are essential components of a system designed to deliver primary and specialty patient services and to promote medical and health sciences education and research;
(4) the mission of the university of Kansas hospital is to facilitate and support the education, research and public service activities of the university of Kansas medical center and its health sciences schools, to provide patient care and specialized services not widely available elsewhere in the state and to continue the historic tradition of care by the university of Kansas hospital to medically indigent citizens of Kansas;
(5) to provide for the education and training of health care professionals, to provide a clinical setting for biomedical research, and to ensure the availability of quality patient care including specialized medical services not otherwise widely available, it is necessary that the university of Kansas hospital be a facility of the finest possible quality;
(6) such quality hospital, health care and related facilities require specialized management and operation to remain economically viable to earn revenues necessary for its operation and to engage in arrangements with public and private entities and other activities, taking into account changes that have occurred or may occur in the future in the provision of health care and related services; and
(7) the needs of the citizens of the state of Kansas and of the university of Kansas medical center and its health sciences schools will be best served if the university of Kansas hospital is transferred to and operated by an independent public authority charged with the mission of operating a teaching hospital for the benefit of the university of Kansas medical center, providing high quality patient care and providing a site for medical and biomedical research.
(b) The exercise of the powers permitted by this act are deemed an essential governmental function in matters of public necessity for the entire state in the provision of health care, medical and health sciences education and research.
History: L. 1998, ch. 12, § 2; Feb. 26.
(a) "Authority" means the university of Kansas hospital authority created by this act.
(b) "Board" means the board of directors of the authority created by this act.
(c) "Health sciences schools" means the schools of medicine, nursing, allied health, pharmacy and any other schools operated by the university of Kansas at the university of Kansas medical center.
(d) "Bonds" means any bonds, notes, lease certificates of participation or other evidences of indebtedness, whether or not the interest on which is subject to federal income taxation, issued by the authority pursuant to this act.
(e) "Hospital assets" means all records, property or rights in property, real and personal, tangible and intangible existing on the transfer date specified by this act, used by or accruing to university of Kansas or the university of Kansas medical center for the benefit of the university of Kansas hospital in the normal course of its operations as a teaching, research and medical treatment facility.
(f) "Hospital obligations" means all debts or other obligations, contingent or certain, owing on the transfer date under this act to any person or other entity, arising out of the operation of the university of Kansas hospital as a medical treatment facility, and including, without limitation, all bonds and other debts for the purchase of goods and services, whether or not delivered, and obligations for the delivery of services, whether or not performed.
(g) "Regents" means the board of regents of the state of Kansas.
(h) "State employee" means a person employed by the state of Kansas whether or not a classified or unclassified employee in the state personnel system. Hospital or authority employees shall not be considered state employees, as such term is defined in this act or in any other statute or regulation. The provisions of this subsection are to be construed and applied retroactively to the date of the original enactment of K.S.A. 2007 Supp. 76-3303, and amendments thereto.
(i) "Transfer date" means a date or dates agreed to by the regents and the authority which shall be on or after March 1, 1998, but not later than December 31, 1998, for the transfer of hospital assets to and the assumption of hospital obligations by such authority.
(j) "University of Kansas hospital" means the hospital and hospital clinics operated by the university of Kansas, separately or jointly with another health care provider.
(k) "State" means the state of Kansas.
(l) "Initial board" means the board of directors initially appointed by the governor under this act.
(m) "Medical center employee" means an employee of the university of Kansas medical center whose salary is not paid in whole or in part from the hospital revenue fund.
(n) "Hospital or authority employee" means an employee of the authority who performs services for the university of Kansas hospital or otherwise performs services for the authority and whose salary is paid in whole or in part by the authority. A hospital authority employee shall not be considered to be a state employee, as such term is defined in this act or in any other statute or regulation. The provisions of this subsection are to be construed and applied retroactively to the date of the original enactment of K.S.A. 2007 Supp. 76-3303, and amendments thereto.
(o) "President" means the chief executive officer of the authority.
(p) "This act" means the university of Kansas hospital authority act.
History: L. 1998, ch. 12, § 3; L. 2002, ch. 62, § 1; Apr. 18.
(b) The authority shall be governed by a nineteen-member board of directors. Thirteen of the members shall be appointed by the governor, subject to confirmation by the senate as provided in K.S.A. 75-4315b, and amendments thereto. Members appointed by the governor shall be representatives of the general public who are recognized for outstanding knowledge and leadership in the fields of finance, business, health-care management, health care providers, legal affairs, education or government. Of the 13 members representing the general public, there shall be at least one member from each congressional district. Six members shall be ex officio voting members consisting of the chancellor of the university of Kansas, the executive vice chancellor of the university of Kansas medical center, the executive dean of the university of Kansas school of medicine, the chief of staff of the university of Kansas hospital medical staff, the president of the authority and the dean of the university of Kansas school of nursing.
(c) On April 18, 2002, the terms of the general public board members then serving on the board shall expire, and, pursuant to subsection (e), the governor shall reappoint all such general public board members. Of the general public members appointed to the board by the governor under this section, three shall have a term of office of one year, three shall have a term of office of two years, three shall have a term of office of three years and four shall have a term of office of four years. Terms of general public members shall expire on March 15. Any general public member whose term expires under this subsection and thereafter is reappointed under this subsection shall be exempt from the requirements of subsection (e) for the term of office appointed under this subsection.
(d) After the board of directors is appointed under subsection (c), members other than ex officio shall be appointed for a term of four years each. Whenever a vacancy occurs in the membership of the board prior to the expiration of a term of office, the governor shall appoint, in the manner provided by subsection (e), a qualified successor to fill the unexpired term. Each member shall hold office for the term of appointment and until the successor has been appointed and confirmed. Any member is eligible for reappointment, but members shall not be eligible to serve more than three consecutive four-year terms, except that this limitation shall not include any previous term of office of any general public member serving on the board on April 18, 2002.
(e) When a vacancy occurs or is announced regarding a member or members representing the general public, a nominating committee of the board after receiving input from the board and conferring with the board shall assemble a slate of not less than two nor more than three persons for each vacancy and shall forward each slate to the governor. The governor shall appoint one board member from each slate and shall forward each appointment to the senate for confirmation as provided in K.S.A. 75-4315b, and amendments thereto. Except as provided by K.S.A. 2007 Supp. 46-2601, and amendments thereto, no person appointed to the board shall exercise any power, duty or function as a member of the board until confirmed by the senate.
(f) The terms of members serving by virtue of their office shall expire immediately upon termination of their holding such office.
(g) The board annually shall elect one of their number as chairperson and another as vice-chairperson. The board also shall elect a secretary and treasurer for terms determined by the board. The same person may serve as both secretary and treasurer. The board shall establish an executive committee, nominating committee and other standing or special committees and prescribe their duties and powers, and any executive committee may exercise all such powers and duties of the board as the board may delegate.
(h) Members of the board of directors of the authority shall serve without compensation. Members of the board attending meetings of the board, or attending a subcommittee meeting thereof authorized by the board, shall be paid mileage and all other applicable expenses, provided such expenses are consistent with policies established from time-to-time by the authority's board of directors and as required by subsection (i).
(i) No part of the funds of the authority shall inure to the benefit of, or be distributed to, its employees, officers or members of the board, except that the authority may make reasonable payments for expenses incurred on its behalf relating to any of its lawful purposes and the authority shall be authorized and empowered to pay reasonable compensation for services rendered to or for its benefit relating to any of its lawful purposes including to pay its employees reasonable compensation.
(j) Any member of the board of directors other than an ex officio member may be removed by an affirmative vote of 10 of the members of the board for malfeasance or misfeasance in office, regularly failing to attend meetings, or for any cause which renders the member incapable of or unfit to discharge the duties of director.
(k) The board shall meet at least six times per year and at such other times as it deems appropriate, or upon call by the president or the chairperson, or upon written request of a majority of the directors. The board may adopt, repeal and amend such rules, procedures and bylaws, not contrary to law or inconsistent with this act, as it deems expedient for its own governance and for the governance and management of the authority. A majority of the total voting membership of the board shall constitute a quorum for meetings. The board may act by a majority of those at any meeting where a quorum is present, except upon such issues as the board may determine shall require a vote of 10 members for approval. The board shall meet for the initial meeting upon call by the chancellor of the university of Kansas who shall act as temporary chairperson until officers of the board are elected pursuant to subsection (g).
(l) The board shall appoint a president who shall serve at the pleasure of the board. The president shall serve as the chief executive officer of the authority. The president's salary shall be set by the board. The board may negotiate and enter into an employment agreement with the individual selected as president of the authority which may provide for compensation allowances, benefits and expenses as may be included in such agreement. The president shall direct and supervise administrative affairs and the general management of the authority. The president, as a member of the board of directors, may not vote on such president's salary.
(m) The board may provide to the president of the authority and other employees designated by the board supplemental benefits in addition to the benefits provided in K.S.A. 2007 Supp. 76-3322, and amendments thereto.
(n) The authority shall continue until terminated by law, except that no such law shall take effect so long as the authority has bonds outstanding, unless adequate provision has been made for the payment or retirement of such debts or obligations. Upon any such dissolution of the authority, all property, funds and assets thereof shall be vested in the state, university of Kansas medical center or other hospital entity as designated by the board and approved by act of the Kansas legislature.
History: L. 1998, ch. 12, § 4; L. 1999, ch. 168, § 3; L. 2002, ch. 62, § 2; L. 2004, ch. 87, § 2; April 22.
(b) Notwithstanding any provision of K.S.A. 45-215 et seq. and amendments thereto [to] the contrary, the following records of the authority shall not be subject to the provisions of the Kansas open records act when in the opinion of the board the disclosure of the information in the records would be harmful to the competitive position of the authority:
(1) Proprietary information gathered by or in the possession of the authority from third parties pursuant to a promise of confidentiality;
(2) contract cost estimates prepared for confidential use in awarding contracts for construction or the purchase of goods or services;
(3) data, records or information of a proprietary nature produced or collected by or for the authority or members of its medical or teaching staff; financial statements not publicly available that may be filed with the authority from third parties; the identity, accounts or account status of any customer of the authority; consulting or other reports paid for by the authority to assist the authority in connection with its strategic planning and goals; and the determination of marketing and operational strategies where disclosure of such strategies would be harmful to the competitive position of the authority; and
(c) Notwithstanding any provision of this section to the contrary, the authority may claim the benefit of any other exemption to the Kansas open records act listed in K.S.A. 45-215 et seq. and amendments thereto.
History: L. 1998, ch. 12, § 5; Feb. 26.
(b) Notwithstanding any provision of K.S.A. 75-4317 et seq. and amendments thereto in the case of the authority, discussion, consideration and action on any of the following may occur in executive session when in the opinion of the board disclosure of the items would be harmful to the competitive position of the authority:
(1) Plans that could affect the value of property, real or personal, owned or desirable for ownership by the authority;
(2) the condition, acquisition, use or disposition of real or personal property;
(3) contracts for provision of health care services and marketing or operational strategies; and
(4) peer review and risk management activities as defined in K.S.A. 65-4914 et seq. and K.S.A. 65-4921 et seq. and amendments thereto.
(c) Notwithstanding any provision of this section to the contrary, the authority may claim the benefit of any other exemption to the Kansas open meetings act listed in K.S.A. 75-4317 et seq. and amendments thereto.
History: L. 1998, ch. 12, § 6; Feb. 26.
(b) All members of the board shall file a written statement pursuant to K.S.A. 46-247 et seq. and amendments thereto regarding any substantial interests within the meaning of K.S.A. 46-229 and amendments thereto that each director may hold. Any employee, other agent or advisor of the authority who has a substantial interest in any contract or transaction with the authority within the meaning of K.S.A. 46-229 and amendments thereto shall file a written statement of substantial interest pursuant to K.S.A. 46-247 et seq. and amendments thereto.
History: L. 1998, ch. 12, § 7; Feb. 26.
(1) Have the duties, privileges, immunities, rights, liabilities and disabilities of a body corporate and a political instrumentality of the state;
(2) have perpetual existence and succession;
(3) adopt, have and use a seal and to alter the same at its pleasure;
(4) sue and be sued in its own name;
(5) make and execute contracts, guarantees or any other instruments and agreements necessary or convenient for the exercise of its powers and functions including, without limitation, to make and execute contracts with hospitals or other health care businesses to operate and manage any or all of the hospital facilities or operations and to incur liabilities and secure the obligations of any entity or individual;
(6) borrow money and to issue bonds evidencing the same and pledge all or any part of the authority's assets therefor;
(7) purchase, lease, trade, exchange or otherwise acquire, maintain, hold, improve, mortgage, sell, lease and dispose of personal property, whether tangible or intangible, and any interest therein; and to purchase, lease, trade, exchange or otherwise acquire real property or any interest therein, and to maintain, hold, improve, mortgage, lease and otherwise transfer such real property, so long as such transactions do not conflict with the mission of the authority as specified in this act;
(8) incur or assume indebtedness to, and enter into contracts with the Kansas development finance authority, which is authorized to borrow money and provide financing for the authority;
(9) develop policies and procedures generally applicable to the procurement of goods, services and construction, based upon sound business practices;
(10) 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;
(11) acquire space, equipment, services, supplies and insurance necessary to carry out the purposes of this act;
(12) deposit any moneys of the authority in any banking institution within or without the state or in any depository authorized to receive such deposits, one or more persons to act as custodians of the moneys of the authority, to give surety bonds in such amounts in form and for such purposes as the board requires;
(13) procure such insurance, participate in such insurance plans or provide such self insurance or both as it deems necessary or convenient to carry out the purposes and provisions of this act; the purchase of insurance, participation in an insurance plan or creation of a self-insurance fund by the authority shall not be deemed as a waiver or relinquishment of any sovereign immunity to which the authority or its officers, directors, employees or agents are otherwise entitled;
(14) appoint, supervise and set the salary and compensation of a president of the authority who shall be appointed by and serve at the pleasure of the board;
(15) fix, revise, charge and collect rates, rentals, fees and other charges for the services or facilities furnished by or on behalf of the authority, and to establish policies and procedures regarding any such service rendered for the use, occupancy or operation of any such facility; such charges and policies and procedures not to be subject to supervision or regulation by any commission, board, bureau or agency of the State; and
(16) do any and all things necessary or convenient to carry out the authority's purposes and exercise the powers given in this act.
(b) The authority may create, own in whole or in part, or otherwise acquire or dispose of any entity organized for a purpose related to or in support of the mission of the authority.
(c) The authority may participate in joint ventures with individuals, corporations, governmental 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.
(d) The authority may create a nonprofit entity or entities for the purpose of soliciting, accepting and administering grants, outright gifts and bequests, endowment gifts and bequests and gifts and bequests in trust which entity or entities shall not engage in trust business.
(e) In carrying out any activities authorized by this act, the authority may provide appropriate assistance, including the making of loans and providing time of employees, to corporations, partnerships, associations, joint ventures or other entities, whether or not such corporations, partnerships, associations, joint ventures or other entities are owned or controlled in whole or in part, directly or indirectly, by the authority.
(f) Effective with the transfer date, all moneys of the authority shall be deposited in one or more banks or trust companies in one or more special accounts. All banks and trust companies are authorized to give security for such deposits if required by the authority. The moneys in such accounts shall be paid out on a warrant or other orders of the treasurer of the authority or any such other person or persons as the authority may authorize to execute such warrants or orders.
(g) Notwithstanding any provision of law to the contrary, the authority, effective with the transfer date, may invest the authority's operating funds in any obligations or securities as authorized by the board. The board shall adopt written investment guidelines.
(h) The authority is authorized to negotiate contracts with one or more qualified parties to provide collection services. The selection of a collection services provider shall be based on responses to a request for proposals from qualified professional firms and shall be administered in accordance with policies adopted by the board.
(i) Notwithstanding any provision of law to the contrary, no abortion shall be performed, except in the event of a medical emergency, in any medical facility, hospital or clinic owned, leased or operated by the authority. The provisions of this subsection are not applicable to any member of the physician faculty of the university of Kansas school of medicine on property not owned, leased or operated by the authority. As used in this subsection, "medical emergency" means a pregnant woman's medical condition that, on the basis of a physician's good-faith clinical judgment, necessitates an immediate abortion to avert the woman's death or to avert a serious risk of substantial and irreversible impairment of a major bodily function.
History: L. 1998, ch. 12, § 8; Feb. 26.
(b) The university of Kansas hospital authority is authorized to repair, remodel or renovate state buildings and facilities of the university of Kansas medical center from any moneys of the university of Kansas hospital authority if the capital improvement projects for such repairs, remodeling or renovations have received prior approval by the state board of regents and the plans and specifications for such projects have received prior approval by the secretary of administration. Such capital improvement projects shall be totally financed from moneys of the university of Kansas hospital authority and the repairs, remodeling or renovations shall become the property of Kansas upon completion and acceptance by the secretary of administration. No such capital improvement project to repair, remodel or renovate any state building or facility shall be approved by the state board of regents without having first advised and consulted with the joint committee on state building construction.
History: L. 1999, ch. 168, § 8; May 20.
(b) Any such lease, conveyance or transfer of hospital assets to the authority shall be conditioned upon the existence of a binding agreement between the regents and the authority which provides that effective on the transfer date under this act and thereafter, the authority shall assume responsibility for and shall defend, indemnify and hold harmless the regents and the state and the university of Kansas and its officers and directors with respect to:
(1) Liabilities and duties of the regents pursuant to contracts, agreements and leases for commodities, services, and supplies utilized by university hospital, including real property leases;
(2) claims related to the employment relationship between employees of the authority and the authority on and after the transfer date under this act;
(3) claims for breach of contract resulting from the authority's action or failure to act on and after the transfer date under this act; and
(4) claims related to the authority's errors and omissions including, but not limited to: Medical malpractice; directors and officers liability; workers' compensation; automobile liability; and premises, completed operations and products liability.
(c) Any lease, conveyance or transfer of hospital assets to the authority shall be further conditioned upon the existence of a binding agreement between the regents and the authority by which the authority shall accept and agree to abide by the provisions set forth in K.S.A. 2007 Supp. 76-3302 and amendments thereto concerning the mission of the authority and the provisions in K.S.A. 2007 Supp. 76-3311 and amendments thereto concerning employees of the university hospital.
(d) Any disputes that arise in the transfer of property from the university to the authority shall be resolved by the governor.
History: L. 1998, ch. 12, § 9; Feb. 26.
History: L. 1998, ch. 12, § 10; Feb. 26.
(b) Nothing in this act or any act of which it is amendatory shall be construed as placing any officer or employee of the authority in the classified or the unclassified service under the Kansas civil service act.
(c) All current hospital employees of the university of Kansas medical center shall transfer to the authority. The authority and the university of Kansas medical center shall then jointly determine any medical center employees whose employment shall be transferred to the authority. The university shall issue a written notice to all persons whose employment will be transferred to the authority. After receipt of such notice, each such employee may elect not to be employed by the authority by submitting a written statement of such election within 45 days after receipt of such notice. Any classified employee of the university of Kansas medical center who receives such notice of transfer to the authority and elects not to become employed by the authority and who is not reemployed by any department, institution, board, commission or agency of the state shall be subject to the provisions of K.S.A. 75-2948 et seq. and amendments thereto. Any unclassified employee or unclassified health care worker of the university of Kansas medical center who receives such notice of transfer to the authority and elects not to become employed by the authority shall be subject to the employment policies of the university of Kansas medical center. Any employee who accepts employment with the authority shall not be considered to be involuntarily separated from state employment. The authority shall not be treated as a state agency for purposes of the state leave payment reserve fund under K.S.A. 75-5542 through 75-5545, and amendments thereto.
(d) Hospital employees and medical center employees of the university of Kansas medical center who transfer to the authority to a position of similar duties as of the transfer date shall receive the same rate of compensation as was received by the employee prior to such transfer.
(e) Notwithstanding the provisions of K.A.R. 1-9-13 or any other rules and regulations or of any statute to the contrary, all vacation leave and sick leave balances of employees of the university of Kansas medical center who accept employment with the authority as of the transfer date shall be transferred from the university of Kansas medical center to the authority.
(f) The authority and the university of Kansas medical center may enter into agreements providing for the purchase of services of employees of the university of Kansas medical center utilized in support of the hospital by payment of such amounts as may be agreed upon by the parties.
(g) Nothing in this act shall affect the representation rights of collective bargaining organizations that represent employees of the university of Kansas medical center who transfer to the authority, nor shall it affect any term or condition of any collective bargaining agreement in effect on the effective date of this act. The authority shall be a public agency for purposes of the Kansas public employer-employee relations act, K.S.A. 75-4321 et seq., and amendments thereto.
(h) The authority is authorized to establish a health insurance plan for the benefit of its employees or to enter into agreements with the department of administration in accordance with K.S.A. 75-6503 and amendments thereto, providing for the coverage of its employees under the state employees' health insurance plan. Notwithstanding any other provision of law to the contrary, any person whose employment is transferred to the authority as a result of this act and who is a member of any plan providing health insurance coverage as an employee of the university of Kansas medical center and who so elects to continue such coverage shall continue to be a member of such health insurance plan under the same terms and conditions as if no transfer had occurred, with such election to continue through the current state employees' health insurance coverage period. Alternatively, an employee may elect to become a member of any health insurance plan established by the authority.
History: L. 1998, ch. 12, § 11; L. 1999, ch. 168, § 4; May 20.
(2) Except as may otherwise be expressly provided by the authority, every issue of the authority's bonds shall be obligations of the authority payable out of any revenues or moneys of the authority, subject only to any agreements with the holders of particular bonds pledging any particular revenues.
(b) (1) The bonds shall be authorized by a resolution adopted by the board.
(2) For each bond issuance, the board shall select a bond financing team, including bond counsel and bond underwriter and any other professional service provider required, to provide all professional services required for the bond issuance. The selection shall be based on responses to a request for proposals from qualified professional firms, administered in accordance with policies adopted by the board.
(c) Any resolution authorizing any bonds or any issue thereof may contain such provisions as deemed appropriate by the board for the purpose of carrying out the authority's corporate purposes and securing such bonds, which shall be a part of the contract with the holders thereof, as to:
(1) Pledging all or any part of the revenues of the authority to secure the payment of the bonds or of any issue thereof, subject to such agreements with bondholders as may then exist;
(2) pledging all or any part of the assets of the authority to secure the payment of the bonds or of any issue of bonds, subject to such agreements with bondholders as may then exist, such assets to include any grant or contribution from the federal government or any corporation, association, institution or person;
(3) the setting aside of reserves or sinking funds and the regulation and disposition thereof;
(4) limitations on the purpose to which the proceeds of sale of bonds may be applied and pledging such proceeds to secure the payment of the bonds or of any issues thereof;
(5) limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured, and the refunding of outstanding or other bonds;
(6) the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which such consent may be given;
(7) limitations on the amount of moneys to be expended by the authority for operating expenses of the authority;
(8) vesting in a trustee such property, rights, powers and duties in trust as the authority may determine, which may include any or all of the rights, powers and duties of the trustee appointed by the bondholders pursuant to this act, and limiting or abrogating the right of the bondholders to appoint a trustee under this act or limiting the rights, powers and duties of such trustee;
(9) defining the acts or omissions to act which shall constitute a default in the obligations and duties of the authority to the holders of the bonds and providing for the rights and remedies of the holders of the bonds in the event of such default, including as a matter of right the appointment of a receiver, except that such rights and remedies shall not be inconsistent with the general laws of this state and the other provisions of this act; and
(10) 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 section may be set forth in a trust indenture authorized by a resolution of the board.
(e) The bonds of each issue may, in the discretion of the board, be made redeemable before maturity at such prices and under such terms and conditions as may be determined by the board. Bonds shall mature at such time, not exceeding thirty years from their date of issue, as may be determined by the board. 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 coupon 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 of the authority may be sold by the authority, at public or private sale, at such price as the board shall determine.
(f) In case any officer 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. The board may also provide for the authentication of the bonds by a trustee or fiscal agent.
(g) Prior to the preparation of definitive bonds, the authority may, under like restrictions, issue interim receipts or temporary bonds until such definitive bonds have been executed and are available for delivery.
(h) The authority, subject to such agreements with bondholders as may then exist, has the power out of any funds available therefor to purchase bonds of the authority, which shall thereupon be canceled at a price not exceeding:
(1) If the bonds are then redeemable, the redemption price then applicable plus accrued interest to the next interest payment thereon; or
(2) if the bonds are not then redeemable, the redemption price applicable on the first date after such purchase upon which the bonds become subject to redemption plus accrued interest to such date.
(i) In the discretion of the authority, the bonds may be secured by a trust indenture by and between the authority and a corporate trustee, which may be any trust company or bank having the power of a trust company within or without this state. Such trust indenture may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the authority in relation to the exercise of its corporate powers and the custody, safeguarding and application of all moneys. The authority may provide by such trust indenture for the payment of the proceeds of the bonds and the revenues to the trustee under such trust indenture or other depository and for the method of disbursement thereof, with such safeguards and restrictions as it may determine. All expenses incurred in carrying out such trust indenture may be treated as a part of the operating expenses of the authority.
(j) Any bonds issued 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.
(k) Any holder of bonds issued under the provisions of this act, or any coupons appertaining thereto and the trustee under any trust agreement or resolution authorizing the issuance of such bonds, except the rights under this act may be restricted by such trust agreement or resolution, 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 authority pursuant to this act, and may enforce and compel the performance of all duties required by this act or by such trust agreement or resolution to be performed by the authority or by an officer thereof.
(l) Notwithstanding any of the foregoing provisions of this act or any recitals in any bonds issued under the provisions of this act, all such bonds and interest coupons appertaining thereto shall be negotiable instruments under the laws of this state, subject only to any applicable provisions for registration.
(m) Bonds issued under the provisions of this act are hereby made securities in which all insurance companies, trust companies, banking associations, savings and loan associations, investment companies, executors, administrators, trustees and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them. Such bonds are hereby made securities which may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the state for any purpose for which the deposit of bonds or obligations of the state is authorized by law.
(n) Neither the state of Kansas nor the regents shall be liable for bonds of the authority, and such bonds shall not constitute a debt of the state or of the regents. The bonds shall contain on the face thereof a statement to such effect.
(o) Neither the members of the board nor any authorized person executing bonds issued pursuant to this act shall be personally liable for such bonds by reason of the execution or issuance thereof.
(p) The authority shall submit to the regents, the governor and the legislature within six months after the end of the fiscal year a report which shall set forth a complete and detailed operating and financial statement of the authority during such year. Also included in the report shall be comprehensive information regarding all audit reports performed in such year including any legislative post audit report performed under K.S.A. 46-1106 et seq. and amendments thereto and any recommendations with reference to additional legislation or other action that may be necessary to carry out the purposes of the authority.
(q) This state does hereby pledge to and agree with the holders of any bonds issued under this act that this state will not limit or alter the rights hereby vested in the authority to fulfill the terms of any agreements made with the such holders thereof or in any way impair the rights and remedies of such holders until such bonds, together with the interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of such holders are fully met and discharged. The authority is authorized to include this pledge and agreement of this state in any agreement with the holders of such bonds.
(r) Nothing in this act shall be construed as a restriction or limitation upon any other powers which the authority 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, additional 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. However, 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.
(s) Any of the provisions relating to bonds described in this section may be included in any contracts between the authority and the Kansas development finance authority relating to obligations of the Kansas development finance authority issued on behalf of the authority.
History: L. 1998, ch. 12, § 12; Feb. 26.
History: L. 1998, ch. 12, § 13; Feb. 26.
History: L. 1998, ch. 12, § 14; Feb. 26.
History: L. 1998, ch. 12, § 15; Feb. 26.
History: L. 1998, ch. 12, § 18; Feb. 26.
History: L. 1998, ch. 12, § 19; L. 1999, ch. 168, § 5; May 20.
History: L. 1998, ch. 12, § 20; Feb. 26.
(b) The authority shall also be subject to any applicable state, county and local building codes.
(c) The state building codes shall supersede any like standards of a county or local code unless those standards are more stringent than the state standards.
History: L. 1998, ch. 12, § 22; Feb. 26.
History: L. 1998, ch. 12, § 23; Feb. 26.
History: L. 1998, ch. 12, § 24; L. 1999, ch. 168, § 6; L. 2002, ch. 62, § 3; Apr. 18.
History: L. 1998, ch. 12, § 25; L. 1999, ch. 168, § 7; L. 2002, ch. 62, § 4; Apr. 18.
History: L. 1998, ch. 12, § 21; Feb. 26.