HOUSE BILL No. 2603*
An Act concerning energy conservation; relating to improvements to state and municipal
facilities; authorizing the financing of such improvements.
Be it enacted by the Legislature of the State of Kansas:

      Section  1. (a) As used in this act:

      (1) ``Municipality'' shall have the meaning ascribed thereto in K.S.A.
75-1117, and amendments thereto.

      (2) ``State agency'' shall have the meaning ascribed thereto in K.S.A.
75-3049, and amendments thereto.

      (3) ``Energy conservation measure'' means an energy study, audit,
improvement or equipment which is designed to provide energy and op-
erational cost savings at least equivalent to the amount expended by a
participating municipality or state agency for such energy study, audit,
improvement or equipment over a period of not more than 20 years after
the date such improvement or equipment is installed or becomes oper-
ational, as the case may be.

      (b) Subject to the provisions of subsection (c), a municipality or state
agency may enter into a contract or lease-purchase agreement for an
energy conservation measure which meets the criteria of this section. In
addition to any other authority provided by law a municipality may solicit
proposals to contract for an energy conservation measure by advertising
for proposals and qualifications in a newspaper of general circulation or
the Kansas register, and by sending requests for proposals to at least three
vendors and negotiating a lease-purchase agreement with one or more
vendors submitting a proposal thereto. Negotiations entered into pursu-
ant to this section with individual vendors shall not be subject to the
provisions of the open meetings act. After an agreement has been exe-
cuted, the agreement and all proposals from vendors shall be open re-
cords available for public inspection in accordance with the open records
act. A state agency may utilize the procedures prescribed in K.S.A. 75-
37,102, and amendments thereto, by the procurement negotiating com-
mittee to negotiate and contract for energy conservation measures. Each
state agency shall provide copies of plans of the proposed energy conser-
vation measure to the secretary of administration, or such secretary's des-
ignee, for review. No state agency may enter into a contract for an energy
conservation measure unless such measure has been approved by the
secretary of administration. Plans submitted under this section shall be
retained and maintained by the secretary of administration.

      (c) Before executing any contract or lease-purchase agreement under
this section, the energy conservation contractor shall provide the munic-
ipality or state agency with plans for the proposed energy conservation
measures prepared by an engineer licensed to practice in Kansas. The
energy conservation contractor shall also provide a report of the calcu-
lations showing the estimated energy and operational cost savings that
would result from the proposed energy conservation measures. Notwith-
standing any provision contained in K.S.A. 1999 Supp. 72-8225, and
amendments thereto, the board of education of any school district may
enter into a contract or lease-purchase agreement for an energy conser-
vation measure for a period exceeding 10 years. Municipalities and state
agencies may include a provision in the contract with an entity providing
the energy conservation measure requiring such entity to guarantee that
the actual amount of savings of energy and operational costs attributable
to the energy conservation measure be not less than the cost of the energy
conservation measure over the time specified including financing costs.

      (d) Within the limits of appropriations available therefor, the state
corporation commission is authorized to provide grants for engineering
studies and energy conservation measures for municipalities and state

      (e) The secretary of administration may provide administrative sup-
port and resources available under the facility conservation improvement
program under K.S.A. 75-37,111 et seq., and amendments thereto, as
requested by municipalities and state agencies for purposes of this sec-
tion. The secretary of administration may fix, charge and collect reason-
able fees for any administrative support and resources or other services
provided by the secretary under this subsection.

      (f) The provisions of the cash basis law and K.S.A. 79-2925, and
amendments thereto, shall not apply to any contract or lease-purchase
agreement entered into pursuant to this section.

 Sec.  2. This act shall take effect and be in force from and after its
publication in the Kansas register.

Approved April 12, 2000.
 Published in the Kansas Register April 20, 2000.