Senate Substitute for HOUSE BILL No. 2035*
An  Act enacting the KAN-ED act; providing for establishment and maintenance of a
broadband technology-based network for certain schools, libraries and hospitals.
Be it enacted by the Legislature of the State of Kansas:

      Section  1. This act may be cited as the KAN-ED act.

      Sec.  2. As used in this act, unless the context requires otherwise:

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

      (b) ``Hospital'' means a licensed hospital, as defined in K.S.A. 65-425,
and amendments thereto.

      (c) ``Library'' means: (1) The state library; (2) any public library es-
tablished and operating under the laws of this state; or (3) any regional
system of cooperating libraries, as defined in K.S.A. 75-2548, and amend-
ments thereto.

      (d) ``Network'' means the KAN-ED network created pursuant to this

      (e) ``School'' means: (1) Any unified school district, school district
interlocal cooperative, school district cooperative or nonpublic school ac-
credited by the state board of education; or (2) any community college,
technical college, area vocational school, area vocational-technical school
or Kansas educational institution, as defined in K.S.A. 2000 Supp. 74-
32,120, and amendments thereto.

      Sec.  3. (a) The purpose of this act is to provide for a broadband
technology-based network to which schools, libraries and hospitals may
connect for broadband internet access and intranet access for distance
learning. For that purpose, the state board of regents shall contract in
accordance with this act for the creation, operation and maintenance of
such network, to be known as the KAN-ED network.

      (b) The network shall not provide for: (1) Impairment of any existing
contract for the provision of telecommunications services or internet serv-
ices to any school, library or hospital; (2) state ownership or construction
of any network facilities other than those owned or being constructed by
the state on the effective date of this act; (3) switched voice access, except
to the extent switched access is being provided by state owned, leased or
operated facilities as of the effective date of this act; (4) transmission of
voice over internet or voice over internet protocol, except to the extent
necessary to facilitate interactive two-way video; or (5) use of the network
for purposes inconsistent with the purposes of this act.

      Sec.  4. (a) The board shall establish a plan to ensure that all schools,
libraries and hospitals have quality, affordable access to the internet and
distance learning. The board shall adopt standards for determining
whether such access is available to each school, library or hospital desiring
such access and shall adopt priorities for implementation of such access.
The board may request and receive assistance from any school, any li-
brary, any hospital, the state corporation commission, any other agency
of the state or any telecommunications, cable or other communications
services provider to gather necessary data to implement such plan and
establish such standards and priorities. The board shall develop a meth-
odology for updating and validating any data collected for periodic revi-
sions of the plan, standards and priorities. Not less than 75% of all schools
which have applied to the board to participate in the network, 75% of all
libraries which have applied to the board to participate in the network
and 75% of all hospitals which have applied to the board to participate in
the network shall have access to the network by July 1, 2004.

      (b) The board shall contract with providers of telecommunications serv-
ices, cable services and other communications services for the creation,
operation and maintenance of the network. Such contracts shall be let by
competitive bids as provided by K.S.A. 75-3739, and amendments thereto.

      (c) The board shall establish: (1) Technical standards for operation
and maintenance of the network; (2) the method of monitoring operations
of the network; and (3) the method or methods of increasing the capacity
of the network to accommodate changes in the demands of schools, li-
braries and hospitals.

      (d) The board shall identify any potential regulatory impediments to
and other regulatory considerations in implementation of the network and
shall propose measures to address such impediments and other consid-

      (e) The board shall assess the need of schools, libraries and hospitals
for full-motion video connectivity. Based on its findings, the board may
develop a plan to provide such connectivity. The plan may require users
of such connectivity bear part of its cost.

      (f) The board may appoint such advisory committees as the board
determines necessary to carry out the purposes of this act. The member-
ship of advisory committees may include both members of the board and
persons who are not board members. Such advisory committees, to the
extent appropriate, shall include both communications services providers
and participants knowledgeable about topics such as network facilities and
services, network content and user training, and such other topics as may
be necessary or useful. Members of advisory committees appointed by
the board shall receive amounts provided for in subsection (e) of K.S.A.
75-3223, and amendments thereto.

      (g) On or before July 1, 2002, and thereafter as the board deems
appropriate, the board shall adopt rules and regulations to implement and
administer the provisions of this act.

      (h) The board shall have all other powers necessary to achieve the
purposes of this act, including but not limited to the power to receive any
appropriations, donations, grants, bequests and devises, conditional and
otherwise, of money, property, services or other things of value for the
purposes of this act.

      (i) The state department of education, the division of information
systems and communications of the department of administration, the
state corporation commission and all other state agencies shall cooperate
with the board in providing information and other assistance requested
by the board for the performance of its duties pursuant to this act.

      Sec.  5. (a) There is hereby created in the state treasury the KAN-
ED fund. The board shall remit to the state treasurer all moneys received
by or on behalf of the board for the purposes of this act. Upon receipt of
the remittance, the state treasurer shall deposit the entire amount in the
state treasury and credit it to the KAN-ED fund.

      (b) Moneys in the KAN-ED fund shall be expended only for the
purposes of this act.

      (c) On or before the 10th of each month, the director of accounts
and reports shall transfer from the state general fund to the KAN-ED
fund interest earnings based on:

      (1) The average daily balance of moneys in the fund for the preceding
month; and

      (2) the net earnings rate for the pooled money investment portfolio
for the preceding month.

      (d) All expenditures from the KAN-ED fund shall be made in ac-
cordance with appropriation acts upon warrants of the director of ac-
counts and reports issued pursuant to vouchers approved by the chair-
person of the board or the chairperson's designee for the purposes set
forth in this section.

      Sec.  6. On or before January 15 of each year, the board shall publish
an annual report and shall present the report to the legislature, governor
and department of education. The report shall set forth in detail the
operations and transactions conducted by the board pursuant to this act.
The annual report shall specifically account for the ways in which the
purpose of this act have been carried out, and the recommendations shall
specifically note what changes are necessary to better address the pur-
poses described in this act.

      Sec.  7. If any provision of this act or the application thereof to any
person or circumstances 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 application. To this end the provisions of this act
are severable.

 Sec.  8. This act shall take effect and be in force from and after its
publication in the Kansas register.

Approved April 20, 2001.
 Published in the Kansas Register April 26, 2001.