As Amended by House Commettee

          Session of 1998
By Committee on Governmental Organization and Elections
          10             AN ACT relating to contracts for the use or acceptance of debit cards by
11             institutions under the state board of regents; amending K.S.A. 75-
12             37,100 and repealing the existing section.
14       Be it enacted by the Legislature of the State of Kansas:
15           Section 1. K.S.A. 75-37,100 is hereby amended to read as follows:
16       75-37,100. (a) Upon approval of the secretary of administration, a state
17       agency may negotiate directly with a bank having a fee agency account of
18       the state agency under K.S.A. 75-4214 and amendments thereto and enter
19       into a contract providing for the collection of charge credit card tickets
20       accepted by the state agency in payment of fees, tuition and other charges.
21       Any state agency so authorized may allow the bank a discount from the
22       face value of charge credit card tickets to compensate them for services
23       provided in collecting such accounts, except that any discount shall not
24       exceed 3% of the face value of the charge credit card tickets. All contracts
25       entered into under this subsection shall be exempt from the provisions
26       of K.S.A. 75-3739 to 75-3744, inclusive, and any amendments to those
27       sections amendments thereto.
28           (b) In lieu of the procedure authorized by subsection (a), the secre-
29       tary of administration may prepare specifications and solicit sealed pro-
30       posals from banks or other financial institutions for the collection of
31       charge credit card tickets accepted by all state agencies in payment of
32       fees, tuition and other charges or for the sale of charge credit card tickets
33       accepted by all state agencies to banks or other financial institutions. The
34       specifications and sealed proposals shall state the terms, schedules for
35       settlement and conditions under which payment for the charge credit
36       card tickets are to be made. If one or more proposals are adopted by
37       entering into contracts therefor, each state agency covered (1) may pay
38       service charges, if any, for such services from the fee or other special
39       revenue fund in which the receipts are credited or, if the receipts are
40       credited to the state general fund, from appropriations from the state
41       general fund which are available therefor, or (2) may allow discounts from
42       the face value of the charge credit card tickets to compensate the banks
43       or other financial institution for the cost of handling the transactions. No

HB 2904--Am.


  1       service charges or discounts under a proposal adopted under this subsec-
  2       tion shall exceed 3% of the face value of the charge credit card tickets.
  3           (c) The director of accounts and reports shall prescribe within the
  4       central accounting system those procedures necessary to implement the
  5       provisions of subsections (a) to (c) inclusive of this section.
  6           (d) All contracts entered into or renewed by any institution under the
  7       supervision and control of the state board of regents, with any person,
  8       corporation, organization or public agency, for the use or acceptance of
  9       debit cards by any such institution shall be entered into only on the basis
10       of competitive bids in accordance with the provisions of K.S.A. 75-3738
11       to 75-3744, inclusive, or 75-37,102, and amendments thereto. No con-
12       tract entered into in violation of the provisions of this subsection shall be
13       valid or enforceable in a court of law.
14           Sec. 2. K.S.A. 75-37,100 is hereby repealed.
15           Sec. 3. This act shall take effect and be in force from and after its
16       publication in the statute book.