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HOUSE BILL No. 2622
AN ACT concerning municipal lease-purchase agreements; modifying the protest petition
requirements; amending K.S.A. 10-1116c and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 10-1116c is hereby amended to read as follows:
10-1116c. Any lease-purchase agreement entered into pursuant to this
act shall be subject to the following conditions:
(a) If the proposed agreement is for a term exceeding the current
fiscal year of the municipality, it shall be approved by a majority vote
of all members of the governing body.
(b) If the proposed agreement involves the acquisition of land or
buildings by a municipality other than a county, school district or
community college, is for a term of three or more years, and provides
for payments in any year in excess of 3% of the total amount budgeted
by the municipality for expenditure during the current year, excluding
debt service, a notice thereof specifying the purpose and the total of all
payments shall be published once each week for two consecutive weeks
in a newspaper of general circulation within such municipality. If,
within 30 days following the last publication of such notice, a petition
in opposition to the agreement signed by not less than 5% 3% of the
qualified voters of such municipality is filed with the appropriate
county election officer, no such agreement shall take effect unless and
until the same is approved by a majority of the qualified voters of such
municipality voting at an election thereon. Any such election shall be
called and held in accordance with the provisions of K.S.A. 10-120,
and amendments thereto, or in accordance with the provisions of the
mail ballot election act.
(c) If the municipality is a county, school district or community
college and the proposed agreement involves the acquisition of land or
buildings, is for a term exceeding the current fiscal year of the
municipality, and provides for annual payments which in the aggregate
exceed $100,000, the governing body of such municipality first shall
adopt a resolution stating its intent to enter into such lease-purchase
agreement. The resolution shall specify the total of all payments to be
made pursuant to the agreement and the purpose for which such
agreement is to be entered into. The resolution shall be published once
each week for two consecutive weeks in a newspaper of general
circulation within the municipality. If a protest petition signed by not
less than 5% 3% of the qualified voters of the municipality , as
determined by the vote for secretary of state at the last general election,
is filed with the appropriate county election officer within 30 days
following the last publication of the resolution, no such agreement shall
take effect unless approved by a majority of the qualified voters of the
municipality voting at an election thereon. Any such election shall be
called and held in the manner provided by K.S.A. 10-120, and
amendments thereto, or in accordance with the provisions of the mail
ballot election act. If no such protest petition is filed within the time
limitation contained herein, the governing body of the municipality
may enter into such agreement. If an election is held pursuant to a
protest petition and a majority vote is cast in favor of the proposition,
the governing body of the municipality shall have authority to enter
into such agreement.
(d) If the proposed agreement is for a term exceeding the current
fiscal year of the municipality, the agreement shall specify the
following: (1) The amount or capital cost required to purchase the item
if paid for by cash; (2) the annual average effective interest cost; and
(3) the amount included in the payments for service, maintenance,
insurance or other charges exclusive of the capital cost and interest
cost.
HOUSE BILL No. 2622—page 2
Sec. 2. K.S.A. 10-1116c is hereby repealed.
Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.
I hereby certify that the above BILL originated in the House, and passed
that body
HOUSE concurred in
SENATE amendments __________________________________________________________________
Speaker of the House.
Chief Clerk of the House.
Passed the SENATE
as amended
President of the Senate.
Secretary of the Senate.
APPROVED ______________________________________________________________________________
Governor.