SESSION OF 2021
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2401
As Amended by Senate Committee on Ways
and Means

Brief*
HB 2401, as amended, would authorize the Secretary of
Corrections (Secretary) to enter into agreements for public-
private partnerships for projects for new or renovated
buildings at correctional institutions.

Legislative Findings
The bill would include whereas clauses setting forth
legislative findings regarding education and skills-building
programming in correctional facilities, public-private
partnerships, and addressing the spiritual needs of
incarcerated persons.

Definitions (New Section 1)
The bill would define the terms “faith-based
organization,” “public-private partnership,” “public-private
project,” “private entity,” “secretary,” and “spiritual needs.”
The bill would also define the term “correctional
institution” to mean the El Dorado, Ellsworth, Hutchinson,
Lansing, Norton, Osawatomie, Stockton, Topeka, and
Winfield correctional facilities; Larned Correctional Mental
Health Facility; Toronto Correctional Work Facility; Wichita
Work Release Facility; any juvenile correctional facility or
institution defined in continuing law; and any other
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
correctional institution established by the state for the
confinement of adult or juvenile offenders under control of the
Secretary.

Secretary Authorization (New Section 2)
The bill would authorize the Secretary to enter into
agreements for public-private partnerships for projects for the
purpose of funding new or renovated buildings at correctional
institutions for education, skills-building, and spiritual needs
programs.
The bill would require the Secretary to determine project
suitability by conducting an analysis of the feasibility,
desirability, and the convenience to the public of the project,
and whether the project furthers the public policy goals of the
Department of Corrections (Department).
The bill would require the Secretary to consult with the
Secretary of Administration for input from the Office of
Facilities and Property Management when conducting the
analysis. The bill would require the Secretary to advise and
consult the Joint Committee on State Building Construction
prior to start of the project.
The bill would clarify that public-private partnerships are
not to be established for privately operated correctional
institutions.
The bill would allow the Secretary to request approval to
issue bonds for the public-private project.
The bill would require the Secretary, at the beginning of
the 2022 Legislative Session and each year thereafter, to
submit to the House Committee on Corrections and Juvenile
Justice and Senate Committee on Judiciary an annual report
on the following:


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 ● Status of active public-private partnership projects,
including funds raised for education, skills-building,
and spiritual needs programs and services;
● Buildings renovated or constructed for such
programs and services;
● Names of all program and service providers and
descriptions of services offered; and
● Number of inmates enrolled in education or skills-
building programs and the graduation or
completion outcomes of such programs.
Project Budget and Nonprofit Corporation Establishment
(New Section 3)
The bill would require the Secretary to prepare a budget
for any proposed project. The bill would require the budget to
reflect the source of the funds and set out with particularity
the full cost of construction and acquisition of such project
and state the budget could include operational costs of such
project. Further, the bill would require the budget to include
any Department costs for such projects in budget estimates
pursuant to continuing law and clearly indicate the portion to
be paid by the State and the portion to be paid by private
funds.
The bill would also allow the Secretary to establish a
nonprofit 501(c)(3) corporation to receive gifts, donations,
grants, and other moneys and engage in fundraising projects
to fund these public-private partnership projects.
The bill would specify that the board of directors of the
corporation would be required to include representatives of
the Department and the Department of Administration.


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Private Entity Qualification and Party Responsibilities
(New Section 4)
The bill would require the Secretary to ensure a private
entity is qualified to carry out the public-private partnership
project including ensuring the entity:
● Has lawful sources of funding, capital, securities, or
other financial resources necessary to carry out the
project available;
● Possesses the managerial, organizational,
technical capacity and experience in the specific
type of project undertaken either through staff,
subcontractors, a consortium, or joint venture
agreement;
● Is qualified to lawfully conduct business in Kansas;
● Certifies that no director, officer, partner, owner, or
other individual with direct and significant control
over the policy of the private entity has been
convicted of corruption or fraud in any jurisdiction
of the United States;
● Maintains a policy of public liability insurance, a
copy of which is provided to the Secretary; and
● Agrees to abide by all relevant local, state, and
federal laws, rules, and regulations.
The bill would require the Secretary to enter an
agreement that reflects the roles, duties, responsibilities, and
commitments of all parties and includes:
● A clear statement:
○ Of the purpose and scope of the project;
○ Of the roles and responsibilities of each party;

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 ○ That the private entity does not gain
sovereign immunity by the agreement; and
○ That each party bears liability and
responsibility for the actions of such party’s
agents and employees;
● Procedures that govern the rights and
responsibilities of the public and private entities
during the construction of the building and in the
event of the termination of the agreement or a
material default;
● A description of how the project will be carried out
consistent with all standards binding on the State,
Department, and correctional institution where
construction or renovations would occur;
● A budget for the project that reflects the source of
funding and costs;
● A statement that, upon completion, the buildings
will be owned by the State; and
● A statement reflecting that maintenance and
operations costs shall be the responsibility of the
State after the building is completed.
Sovereign Immunity (New Section 5)
The bill would provide the Act does not waive the
sovereign immunity of the State of Kansas and does not
create sovereign immunity for any private entity entering a
public-private partnership.

Amendments to Contract Requirements (Section 6)
The bill would amend law concerning competitive bids to
provide, if public funds do not exceed 25 percent of the total
cost of the public-private project, the contract would not be
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subject to the competitive bid requirements in continuing law.
The bill would further clarify that such provisions would not
apply to the procurement process in continuing law for
engineering services.
The bill would also require the Director of Purchases to
include public-private project contracts over $5,000 in the
quarterly report made available to the Legislature.

Technical and Conforming Amendments
The bill would also make technical and conforming
amendments to ensure consistency in statutory phrasing.

Background
The bill was introduced by the House Committee on
Appropriations at the request of Representative Francis.

House Committee on Corrections and Juvenile Justice
In the House Committee hearing on March 10, 2021, the
Secretary and representatives of The Greater Kansas City
Chamber of Commerce, Wichita Regional Chamber of
Commerce, and Workforce Alliance of South Central Kansas
testified as proponents of the bill, indicating the private-
public partnerships will bring together businesses, colleges,
chambers of commerce, non-profits, foundations, and other
partners to create new learning environments and
opportunities for inmates. Written-only proponent testimony
was provided by representatives of Donnelly College and the
Kansas City Metropolitan Crime Commission. No other
testimony was provided.
The House Committee amended the bill to add juvenile
correctional facilities or institutions to the definition of
correctional institution.

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Senate Committee on Ways and Means
In the Senate Committee hearing on March 25, 2021,
the Secretary, Senator Pittman, and a representative of The
Greater Kansas City Chamber of Commerce testified as
proponents of the bill, generally noting an increased
acceptance among employers regarding the hiring of qualified
inmates upon release. Written-only proponent testimony was
provided by representatives of Donnelly College, the Kansas
City Metropolitan Crime Commission, the Wichita Regional
Chamber of Commerce, and the Workforce Alliance of South
Central Kansas. No other testimony was provided.
The Senate Committee amended the bill to add a
provision requiring the Secretary to submit an annual report
to certain legislative committees regarding the status of active
public-private partnership projects and associated renovation
and construction projects, as well as the outcomes of
programs supported through such partnerships.

Fiscal Information
According to the fiscal note prepared by the Division of
Budget on the bill as introduced, the Department indicates the
bill would not have any fiscal effect on the agency. The
Department indicates enactment of the bill would allow it to
facilitate donations of philanthropic private funds to support
certain buildings at correctional institutions. The bill would
require the Department to include any anticipated projects
under the provisions of the bill in its annual budget requests.
Any fiscal effect associated with the bill is not reflected
in The FY 2022 Governor’s Budget Report.
Private-public partnerships; Department of Corrections; correctional institutions


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Statutes affected:
As introduced: 75-3739
As Amended by House Committee: 75-3739
As Amended by Senate Committee: 75-3739
Enrolled: 75-3739