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AN ACT concerning municipal universities; use of proceeds from tax levy;
  amending K.S.A. 13-13a23 and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
  Section 1.  K.S.A. 13-13a23 is hereby amended to read as follows: 13-
13a23. (a) The board of regents of any municipal university heretofore or
hereafter created and established under the provisions of article 13a of
chapter 13 of the Kansas Statutes Annotated, and amendments thereto,
shall have the continuing right, power and authority, by resolution, to
issue bonds of such municipal university from time to time, for the pur-
pose of acquiring real estate, erecting buildings or additions to present
buildings and the purchase of equipment for such buildings and for re-
funding any indebtedness of such university. There shall not be outstand-
ing at any one time an aggregate of bonds of the municipal university in
excess of 2% of the assessed valuation of the taxable tangible property
within the taxing district of the municipal university. The bonds shall bear
interest at a rate not exceeding the maximum rate of interest prescribed
by K.S.A. 10-1009 and amendments thereto and shall mature not later
than 30 years from date of issuance.
  (b)  Provisions for the payment of bonds issued under this section shall
be made by the establishment of a sinking fund to be created out of the
proceeds derived from the taxes levied each year by the board of regents
of such municipal university.
  (c)  The board of regents is hereby authorized to levy taxes on all
taxable tangible property within the taxing district of the municipal uni-
versity to provide for (1) the sinking fund established under subsection
  (b); and (2) the construction, reconstruction, or equipping of new or ex-
isting buildings; and (3) for any other capitalized equipment or permanent
improvements. Such taxes shall be in addition to all taxes which may be
levied by the board of regents pursuant to K.S.A. 13-13a18 and amend-
ments thereto and shall not exceed 3 mills in any one year.
  (d)  The proceeds from the tax levy authorized under this section,
other than that portion of the proceeds for the sinking fund, may be
accumulated from year to year and expended for the construction, recon-
struction or equipping of new or existing buildings, permanent improve-
ments or capitalized equipment or for any one or more of such purposes,
and shall not be subject to the provisions of the budget laws, except that
in making the budget of the municipal university the amount so accu-
mulated and the amount expended thereof shall be shown therein for the
information of the taxpayers.
  Sec. 2.  K.S.A. 13-13a23 is hereby repealed.
  Sec. 3.  This act shall take effect and be in force from and after its
publication in the statute book.