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AN ACT concerning community colleges; transferring supervision thereof
  from the state board of education to the state board of regents; pro-
  viding for state operating grants; amending K.S.A. 12-16,102, 71-202,
  71-204, 71-211, 71-612, 71-613, 71-615, 71-701, 71-801, 71-802, 71-
  901, 71-902, 71-1104, 71-1105, 71-1106, 71-1201, 71-1309, 71-1406,
  71-1507, 71-1702, 72-7518a, 72-9002 and 72-9006 and K.S.A. 1996
  Supp. 71-201, 71-301, 71-603, 71-609 and 71-611 and repealing the
  existing sections; also repealing K.S.A. 71-304, 71-305, 71-306, 71-401,
  71-402, 71-403, 71-601, 71-605, 71-609a, 71-610, 71-1705 and 72-4424
  and K.S.A. 1996 Supp. 71-406, 71-602, 71-607, 71-613a and 71-619.
Be it enacted by the Legislature of the State of Kansas:
  New Section 1.  (a) On July 1, 1997, the community colleges estab-
lished and existing under the laws of this state shall be and hereby are
transferred from the supervision of the state board of education to the
supervision of the state board of regents. The community colleges shall
continue to be operated, managed and controlled by locally elected
boards of trustees. The state board of regents shall exercise such super-
vision over the operation, management and control of community colleges
as may be prescribed by law.
  (b)  All of the powers, duties, functions, records and property of the
state board of education relating to the supervision of community colleges
are hereby transferred to and conferred and imposed upon the state board
of regents.
  (c)  The state board of regents shall be the successor in every way to
the powers, duties and functions of the state board of education relating
to the supervision of community colleges in which the same were vested
prior to the effective date of this act. Every act performed by the state
board of regents under authority of this act shall be deemed to have the
same force and effect as if performed by the state board of education in
which such functions were vested prior to the effective date of this act.
  (d)  Whenever the state board of education, or words of like effect, is
referred to or designated by a statute, contract or other document relating
to the supervision of the community colleges, such reference or desig-
nation shall be deemed to apply to the state board of regents.
  (e)  The state plan for community colleges, prepared and adopted by
the state board of education pursuant to the provisions of the Kansas
community college act, which is in existence on the effective date of this
act, shall continue to be effective and shall be deemed to be the duly
adopted state plan of the state board of regents until revised, amended,
revoked or nullified pursuant to law.
  (f)  All rules and regulations, and all orders and directives of the state
board of education relating to the supervision of community colleges
which are in existence on the effective date of this act shall continue to
be effective and shall be deemed to be the duly adopted rules and reg-
ulations or orders and directives of the state board of regents until revised,
amended, revoked or nullified pursuant to law.
  (g)  The unexpended balance of any appropriation for and any funds
available to the state board of education for purposes relating to the su-
pervision of community colleges shall be transferred to the state board of
regents on the effective date of this act.
  (h)  All books, records and papers of the board of trustees of each
community college shall be open and available, at all reasonable times, to
the state board of regents and its designated officers, employees and
agents.
  (i)  Except as otherwise specifically provided in this act, the transfer
of supervision of the community colleges from the state board of edu-
cation to the state board of regents shall not be construed in any manner
so as to change or affect the operation, management and control of any
community college or to change or affect any existing power, duty or
function of a board of trustees with respect to such operation, manage-
ment and control.
  New Sec. 2.  (a) In each fiscal year, commencing with the 1998 fiscal
year, each community college is entitled to receive an operating grant
from the state general fund in an amount determined by the state board
under this section and provided for by appropriations act.
  (b)  In the 1998 fiscal year, the state board shall:
  (1)  Determine the total amount of expenditures made in the 1996
fiscal year by the community college from its general fund, vocational
education fund, and employee benefits contribution fund;
  (2)  compute 5% of the amount determined under (1) and add the
computed amount to the amount determined under (1);
  (3)  determine the amount of proceeds which would be raised by the
levy of a tax on the taxable tangible property of the community college
district at a rate of 15 mills or at the rate the tax authorized by K.S.A. 71-
204, and amendments thereto, was levied by the community college in
the 1997 fiscal year, whichever is the lower rate;
  (4)  compute 20% of the amount of the sum obtained under (2), which
computed amount will be deemed attributable to student tuition;
  (5)  subtract the amount determined under (3) and the amount com-
puted under (4) from the amount of the sum obtained under (2). The
remainder is the amount of the operating grant the community college is
entitled to receive for the 1998 fiscal year.
  (c)  For fiscal years after the 1998 fiscal year, the chief administrative
officer of each community college shall submit to the state board the
legally adopted budget of operating expenses prepared by the board of
trustees as authorized under K.S.A. 71-612, and amendments thereto,
and a request for an operating grant. The legally adopted budget of op-
erating expenses and request for an operating grant shall be submitted in
the manner and at the time prescribed by the state board. The state board
shall review the legally adopted budget of operating expenses, approve
or adjust and approve such budget, and determine an amount to be re-
ceived by the community college as an operating grant from the state as
provided in this subsection. The state board shall:
  (1)  Determine the amount of proceeds which would be raised by the
levy of a tax in the current fiscal year on the taxable tangible property of
the community college district at a rate of 15 mills;
  (2)  compute 20% of the amount of the legally adopted budget of
operating expenses of the community college approved under this sub-
section for the current fiscal year, which computed amount will be
deemed attributable to student tuition;
  (3)  subtract the amount determined under (1) and the amount com-
puted under (2) from the amount of the legally adopted budget of op-
erating expenses of the community college approved under this subsec-
tion for the current fiscal year. The remainder is the amount of the
operating grant the community college is entitled to receive for the fiscal
year.
  (d)  The state board shall submit the amount of the operating grant
determined for each community college to the director of the budget for
presentation to the governor and submission to the legislature in the man-
ner and at the time prescribed by law for submission of budget estimates
and requests by state agencies.
  New Sec. 3.  From the reports and information submitted to the state
board under K.S.A. 71-603, and amendments thereto, and from other
available information, the state board shall determine the amount each
community college is entitled to receive as provided in section 2, and
amendments thereto. The state board and the post auditor may audit the
records of the community colleges to verify the accuracy of the reports
submitted by the colleges. The state board may promulgate rules and
regulations governing the administration of this act. In the event any
community college is paid more than it is entitled to receive under any
distribution made under this act, the state board shall notify the com-
munity college of the amount of such overpayment, and the college shall
remit the same to the state board, who shall deposit the same in the state
treasury to the credit of the state general fund, and if the community
college fails so to remit, the state board shall deduct the excess amount
so paid from future payments becoming due to the college.
  New Sec. 4.  The payment to each community college of the total
amount of its operating grant shall be made in substantially equal amounts
on August 1 and January 1 of each fiscal year, or as soon thereafter as
possible. The state board shall certify, on or before July 20 and December
20 of each fiscal year, to the director of accounts and reports the amount
due each community college from the state general fund on August 1 or
on January 1, as the case may be, and the director shall draw a warrant
upon the state treasurer in favor of each such college for the appropriate
amount. Upon receipt of such warrant, the treasurer of the community
college shall credit the same to the general fund of the college. All moneys
received by a community college under this section shall be used to pay
current operating expenses of the college, and shall not be used for the
making of capital improvements.
  New Sec. 5.  (a) Each community college shall be eligible to receive
payments of operating grants from the state general fund to continue and
further its traditional two-year collegiate credit programs consisting of
subjects and courses offered at a level not higher than those subjects and
courses normally offered to freshmen and sophomores in four-year insti-
tutions of postsecondary education. The state board of regents shall de-
termine whether the subjects and courses offered in the community col-
leges are at the level of freshmen and sophomore subjects and courses
offered at the state educational institutions.
  (b)  A community college shall not be eligible to receive payments of
operating grants from the state general fund unless it is currently a mem-
ber in good standing of the north central association of colleges and uni-
versities.
  Sec. 6.  K.S.A. 1996 Supp. 71-201 is hereby amended to read as fol-
lows: 71-201. (a) The board of trustees, in accordance with the provisions
of law and the rules and regulations of the state board of education re-
gents, shall have custody of and be responsible for the property of the
community college and shall be responsible for the management and
control of the college. The board of trustees shall hold at least one regular
meeting each month at a time prescribed by the board. The board shall
make an annual report in the manner prescribed by the state board of
education regents. Members of the board of trustees shall be paid sub-
sistence allowances, mileage and other actual and necessary expenses in-
curred in the performance of their official duties.
  (b)  For effectuation of the purposes of this act, the board of trustees
in addition to such other powers expressly granted to it by law and subject
to the rules and regulations of the state board of education regents is
hereby granted the following powers:
  (1)  To select its own chairperson and such other officers as it may
deem desirable, from among its own membership. The secretary may be
chief administrative officer of the college.
  (2)  To sue and be sued.
  (3)  To determine the educational program of the college subject to
prior approval thereof as provided in this act and to grant certificates of
completion of courses or curriculum.
  (4)  To appoint and fix the compensation and term of office of a pres-
ident or chief administrative officer of the college.
  (5)  To appoint upon nomination of the president or the chief admin-
istrative officer members of the administrative and teaching staffs, to fix
and determine within state adopted standards their specifications, define
their duties, and to fix their compensation and terms of employment. No
community college teacher shall be required to meet certification
requirements greater than those required in the state universities under
the control and supervision of the state board of regents.
  (6)  Upon recommendation of the chief administrative officer, to ap-
point or employ such other officers of the college, agents and employees
as may be required to carry out the provisions of law and to fix and
determine within state adopted standards their qualifications, duties,
compensation, terms of office or employment and all other items and
conditions of employment.
  (7)  To enter into contracts.
  (8)  To accept from any government or governmental agency, or from
any other public or private body, or from any other source, grants or
contributions of money or property which the board may use for or in
aid of any of its purposes.
  (9)  To acquire by gift, purchase, lease-purchase, condemnation or
otherwise, and to own, lease, use and operate property, whether real,
personal, or mixed, or any interest therein, which is necessary or desirable
for community college purposes. Any lease-purchase agreement entered
into under authority of this subsection shall be subject to the conditions
set forth in K.S.A. 10-1116c, and amendments thereto. The term of any
lease entered into under authority of this subsection may be for not to
exceed 10 years. Such lease may provide for annual or other payment of
rent or rental fees and may obligate the community college to payment
of maintenance or other expenses. Any lease or lease-purchase agreement
entered into under authority of this subsection shall be subject to change
or termination at any time by the legislature. Any assignment of rights in
any lease or lease-purchase made under this subsection shall contain a
citation of this section and a recitation that the lease or lease-purchase
agreement and assignment thereof are subject to change or termination
by the legislature. To the extent that the provisions of the cash-basis and
budget laws conflict with this subsection in such a manner as to prevent
the intention of this subsection from being made effective, the provisions
of this subsection shall control. This provision is subject to the provisions
of subsection (d).
  (10)  To enter into lease agreements as lessor of any property, whether
real, personal, or mixed, which is owned or controlled by the community
college. Any such agreement may specify the purposes for which the
property may be used, require that the property be maintained and op-
erated by the lessee, and may contain such restrictions or limitations on
the use of the property, be entered into for such period of time, and
include such other terms and conditions as the board of trustees deter-
mines to be necessary and proper. Every such agreement shall be subject
to change or termination at any time by the legislature. Any assignment
of rights under any such agreement shall be subject to approval by the
board of trustees and shall contain a citation of this section and a recitation
that the lease agreement and assignment of rights thereunder are subject
to change or termination by the legislature.
  (11)  To determine that any property owned by the college is no
longer necessary for college purposes and to dispose of the same in such
manner and upon such terms and conditions as provided by law.
  (12)  To exercise the right of eminent domain, pursuant to chapter 26
of Kansas Statutes Annotated.
  (13)  To make and promulgate such rules and regulations, not incon-
sistent with the provisions of law or with rules and regulations of the state
board of education regents, that are necessary and proper for the admin-
istration and operation of the community college, and for the conduct of
the business of the board of trustees.
  (14)  To exercise all other powers not inconsistent with the provisions
of law or with the rules and regulations of the state board of education
regents which may be reasonably necessary or incidental to the establish-
ment, maintenance and operation of a community college.
  (15)  To appoint a member to fill any vacancy on the board of trustees
for the balance of the unexpired term. When a vacancy occurs, the board
shall publish a notice one time in a newspaper having general circulation
in the community college district stating that the vacancy has occurred
and that it will be filled by appointment by the board not sooner than 15
days after such publication.
  (16)  To contract with one or more agencies, either public or private,
whether located within or outside the community college district or
whether located within or outside the state of Kansas for the conduct by
any such agencies of academic or vocational education for students of the
community college, and to provide for the payment to any such agencies
for their contracted educational services from any funds or moneys of the
community college, including funds or moneys received from student
tuition, out-district tuition, fees, funds received from the state of Kansas
or the United States for academic or vocational education or taxes col-
lected under K.S.A. 71-204 and 72-4424, and amendments thereto. Any
contract made under this subsection with an institution of another state
shall be subject to the provisions of K.S.A. 71-202, and amendments
thereto.
  (17)  To authorize by resolution the establishment of a petty cash fund
in an amount not to exceed $1,000, and to designate in such resolution
an employee to maintain such petty cash fund. The employee designated
in any resolution provided for in this subsection receiving such funds shall
keep a record of all receipts and expenditures from the fund, and shall
from time to time, and at the end of the fiscal year, prepare a statement
for the board showing all receipts, expenditures, and the balance in the
petty cash fund. The board of trustees may authorize the employee des-
ignated to maintain any petty cash fund to make a claim for replenishment
of the fund to its original amount in advance of approval by the board of
trustees if, at any time during the period between regular monthly meet-
ings of the board of trustees, the balance remaining in the fund is insuf-
ficient to make needed expenditures for any purpose for which the petty
cash fund is maintained. No petty cash fund may be replenished more
than one time during each period between regular monthly meetings of
the board of trustees. If a petty cash fund is replenished prior to the end
of the fiscal year in accordance with the foregoing authorization, the em-
ployee authorized to maintain the petty cash fund shall keep an accurate
record of all expenditures made therefrom, and the purpose therefor, and
shall submit the record to the board of trustees at the next regular
monthly meeting thereof. The petty cash fund shall be replenished by
payment from the appropriate funds of the community college to the
petty cash fund upon proper claim. The fund shall be kept separate from
all other funds and shall be used only for authorized expenditures and
itemized receipts shall be taken for each expenditure. No part of such
fund may be loaned or advanced against the salary of an employee. All
employees entrusted with such funds under this subsection shall be
bonded by the community college district.
  (c)  Subject to the provisions of subsection (d), the board of trustees
may purchase or otherwise acquire land or land and improvements and
may acquire, construct, reconstruct, repair or remodel improvements
thereon or additions thereto, including furnishings, equipment, and ar-
chitectural and incidental expense related thereto, and for such purposes
the board of trustees is authorized to issue and sell general obligation
bonds, the cumulative total not to exceed the following amounts: Where
the community college district has a taxable tangible valuation of less than
$90,000,000 or is located in a county designated as urban under the pro-
visions of K.S.A. 19-3524, and amendments thereto, not to exceed 5% of
the taxable tangible property of the community college district, and where
the community college district has a taxable tangible valuation of more
than $90,000,000 not to exceed 3% except as provided above for any
community college district located in a county designated as urban under
the provisions of K.S.A. 19-3524, and amendments thereto, of the taxable
tangible property of the community college district. If any increase in the
valuation of a community college district results in an outstanding bonded
indebtedness in excess of that provided in this subsection, such increase
shall not constitute a violation of this subsection. No such bonds shall be
issued until the question of their issuance shall have been submitted to a
vote of the electors of the community college district at a regular election
or at a special election called for that purpose and the majority of the
electors voting on the proposition in such community college district shall
have voted in favor of the issuance of the bonds. Such election shall be
called, noticed and held and the bonds issued, sold, delivered and retired
in accordance with the provisions of the general bond law except as herein
otherwise expressly provided.
  (d)  The board of trustees of a community college may not purchase
or otherwise acquire land or land and improvements outside the com-
munity college district. Nothing in this subsection shall be construed or
operate in any manner to require a board of trustees to sell, convey or
otherwise dispose of land or land and improvements located outside the
community college district and owned or being acquired by the com-
munity college on the effective date of this act, but no board of trustees
may enter into a contract for the construction of improvements on any
such land after the effective date of this act.
  Sec. 7.  K.S.A. 71-202 is hereby amended to read as follows: 71-202.
Whenever a contract is made by a community college with one or more
public or private institutions or agencies located without outside the state
of Kansas for academic or vocational education, the provisions of this
section shall apply thereto.
  (a)  Such contracts shall be made only with respect to places of in-
struction located in one or more states adjoining the state of Kansas.
  (b)  Whenever such a contract is made with a private agency or insti-
tution, the same shall be limited to courses or programs related to the
healing arts or medical skills or techniques and medical science. Every
such contract shall contain a provision that the same may be nullified by
a written notice at any time prior to May 1 of any year, with the nullifi-
cation taking effect on June 1 of such year.
  (c)  Such contracts shall be subject to limitation, change or termina-
tion by the legislature, and shall contain a provision to such effect.
  (d)  No such agreement shall take effect until approved by the state
board of education.
  Every board of trustees which makes a contract to which this section
applies shall make such periodic and special reports of statistical and fi-
nancial information to the state board of education as it may request. The
state board of education and its officers and agents may inspect and audit
any of the financial records of any such board and may enter and inspect
any physical facility related to any such contract whether in this state or
in another state.
  Sec. 8.  K.S.A. 71-204 is hereby amended to read as follows: 71-204.
For all the purpose of community college maintenance and operation
purposes, the board of trustees is authorized to levy a tax on the taxable
tangible property of the community college district.
  Such tax levy shall is authorized to be the amount determined by the
board of trustees to be sufficient to finance that part of the budget of the
community college which is not financed by either (a) anticipated state
aid of any type, (b) anticipated student tuition, or (c) anticipated out-
district tuition, or (d) anticipated federal aid of any type levied at a rate
not to exceed 15 mills. The budget of the community college shall be
prepared and adopted as provided by law, and the tax levy therefor shall
be certified to the county clerk of every county all or a part of the territory
of which is in the community college district.
  Sec. 9.  K.S.A. 71-211 is hereby amended to read as follows: 71-211.
(a) The director of accounts and reports, with the advice of the state board
of education and the legislative educational planning committee, shall
formulate, devise and prescribe a standardized and uniform chart of ac-
counts for use by all community colleges. Such chart of accounts shall be
compatible with the revenues and expenditures classification system de-
veloped by the national association of college and university business of-
ficers. The chart of accounts shall be adaptable to manual or automated
systems, and use of such chart of accounts is hereby required for all
community colleges.
  (b)  The standardized and uniform chart of accounts required by this
section for community colleges shall be prescribed not later than July 1,
1980.
  Sec. 10.  K.S.A. 1996 Supp. 71-301 is hereby amended to read as
follows: 71-301. (a) The board of trustees shall charge to and collect from
each student tuition at rates per credit hour enrolled which shall be es-
tablished by the board of trustees.
  (b)  The board of trustees, in accordance with rules and regulations
of the state board, shall determine an amount of out-district tuition to be
charged for each out-district student attending the community college.
The board of county commissioners of any county charged with payment
of out-district tuition shall levy a tax on all of the taxable property of the
county sufficient to pay all out-district tuition charges authorized by this
act. The proceeds from the tax levied under authority of this section shall
be deposited in a special fund for payment of out-district tuition. Upon
receiving a statement of charges for out-district tuition, the board of
county commissioners shall allow and pay the same from the special fund
within 45 days from the receipt of such statement. If there is insufficient
or no money in the special fund, out-district tuition shall be paid from
the county general fund or from the proceeds of the sale of no-fund
warrants issued for the purpose of the payment of out-district tuition. If
the board of county commissioners fails to pay such amount at the time
required under this subsection, the board of trustees shall notify the state
board of such failure to pay and shall certify to the state board the amount
to be paid. Upon receipt by the state board of such notification, the
amount to be paid as certified to the state board shall become an amount
due and owing to the state board. The state board shall notify the board
of county commissioners that this amount is now due and owing to the
state board. If the board of county commissioners fails to pay such amount
to the state board within 14 days of the receipt of such notification, the
state board shall initiate proceedings under K.S.A. 75-6201et seq. for the
collection of such money. Money paid to or collected by the state board
under this subsection shall be deposited in the out-district tuition sus-
pense account which is hereby created in the state treasury. The state
board shall pay moneys from this account, in accordance with rules and
regulations of the state board, to the community colleges entitled to re-
ceive such money.
  (c)  The total out-district tuition charged by a community college shall
be an amount equal to the number of duly enrolled out-district students
times $24 for each credit hour of each such student.
  (d) (1)  Out-district tuition shall only be charged for credit hours of
out-district students if such students, as determined by the state board,
have not more than 64 credit hours from any institution of postsecondary
education or the students have not more than 72 credit hours and are
enrolled in terminal type nursing courses or freshman-sophomore level
preengineering courses.
  (2)  The credit hour limitations prescribed by provision (1) of this
subsection do not apply to credit hours of out-district students if such
students, as determined by the state board, are enrolled in an approved
vocational education program at a community college for the purpose of
receiving vocational or technical training or retraining in preparation for
gainful employment.
  (e)  In May of each fiscal year, the board of trustees shall notify the
board of county commissioners of the approximate amount of out-district
tuition which will be charged to the county in the succeeding fiscal year.
  (f)  Expenditures for out-district tuition shall be exempt from the
budget law of this state to the extent of such payments not anticipated in
the budget of the county.
  Sec. 11.  K.S.A. 1996 Supp. 71-603 is hereby amended to read as
follows: 71-603. (a) On or before November 1 and on or before March 1
of each year, the chief administrative officer of each community college
shall certify under oath to the state board of regents the total number of
duly enrolled credit hours of students of the community college during
the current school session who meet the state residence requirement.
Each November 1 and March 1, certification for payment shall set forth
separately the credit hour enrollment for preceding sessions and for the
current fall session. The state board may require the community college
to furnish any additional information deemed necessary by it to carry out
the provisions of this act, and shall prescribe such forms and policies as
may be necessary for making such reports.
  (b)  In November of each year, the county clerk of each county shall
certify to the state board of regents with respect to each community col-
lege district in the county, the current assessed valuation of taxable tan-
gible property within each such district. As used in this subsection, the
term ``taxable tangible property'' means all real and tangible personal
property which is subject to general ad valorem taxation.
  Sec. 12.  K.S.A. 1996 Supp. 71-609 is hereby amended to read as
follows: 71-609. (a) No out-district tuition charges, no out-district state
aid entitlement, no credit-hour state aid entitlement, and no general state
aid entitlement shall be based upon credit hours in Moneys received as
operating grants shall not be expended for the teaching of any subject or
course the principal part of which is taught at a location outside the county
of the main campus of the community college, unless the location of such
subject or course is specifically authorized by the state board of education
regents.
  (b) (1)  No out-district tuition charges and no out-district state aid
entitlement shall be based upon credit hours in Moneys received as op-
erating grants shall not be expended for the teaching of any subject or
course which is taught in a county in which the main campus of a state
educational institution is located, unless the teaching of such subject or
course is specifically authorized by the chief executive officer of the state
educational institution or by a designee of the chief executive officer. The
chief executive officer of each state educational institution may designate
and authorize a person or committee to act on behalf of the chief exec-
utive officer in granting the authorizations required by this subsection.
No authorization required by this subsection shall be considered to be or
construed in any manner as an agreement provided for by subsection (c).
  (2)  For the purposes of this subsection, the term ``main campus of a
state educational institution'' as applied to Kansas state university of ag-
riculture and applied science means and includes the campus of the uni-
versity located in Riley county and the campus of the university's college
of technology located in Saline county.
  (3)  The provisions of this subsection are subject to the provisions of
subsection (c).
  (c) (1)  No out-district tuition charges shall be based upon credit
hours in Any subject or course all or the principal part of which is taught
at community college may enter into an agreement with Fort Hays state
university or at Wichita state university under an agreement for the teach-
ing of such subject or course entered into by a community college and
specified subjects or courses at either such university. An agreement en-
tered into under the provisions of this subsection for the teaching of a
subject or course by a community college at Fort Hays state university or
at Wichita state university shall constitute the authorization required by
subsection (b) for the teaching of such subject or course, and no separate
authorization under subsection (b) shall be required.
  (2)  The provisions of this subsection shall expire on June 30, 1998,
unless amended by act of the legislature prior to such date.
  Sec. 13.  K.S.A. 1996 Supp. 71-611 is hereby amended to read as
follows: 71-611. (a) ``Operating expenses'' means the total expenditures
and lawful transfers from the general fund of a community college during
a school fiscal year for all purposes.
  (b)  ``Legally adopted budget of operating expenses'' means the
amount legally authorized and budgeted for such operating expenses in
the budget general fund of a community college.
  (c)  ``General fund'' means the fund of a community college from
which operating expenses are paid and, subject to the provisions of K.S.A.
71-613a, and amendments thereto, to which all amounts of credit hour
state aid, out-district state aid, general state aid received as operating
grants from the state, property taxes for general purposes, out-district
tuition, student tuition, and other moneys provided for by law for payment
of operating expenses are credited.
  Sec. 14.  K.S.A. 71-612 is hereby amended to read as follows: 71-612.
In any each fiscal year, each community college may budget and expend
for operating expenses any amount the board of trustees determines nec-
essary to be budgeted therefor for operating expenses.
  Sec. 15.  K.S.A. 71-613 is hereby amended to read as follows: 71-613.
(a) All moneys received by a community college for establishing, con-
ducting, maintaining and administering any vocational education pro-
gram authorized by under article 44 of chapter 72 of Kansas Statutes
Annotated shall be deposited in the vocational education fund, unless
required to be deposited in the general fund. The expenses of a com-
munity college attributable to vocational education shall be paid from the
vocational education fund.
  (b)  Community colleges shall maintain fund accounting procedures
as may be necessary to assure proper accounting for federal funds for
vocational education special projects, whether received directly from the
federal government or any of its agencies, or received through the state
or any of its agencies.
  Sec. 16.  K.S.A. 71-615 is hereby amended to read as follows: 71-615.
In case a community college expends in any fiscal year an amount for
operating expenses which exceeds its legally adopted budget of operating
expenses, the state board of education shall determine the excess and
deduct the same from amounts payable to the community college during
the next fiscal year.
  Sec. 17.  K.S.A. 71-701 is hereby amended to read as follows: 71-701.
As used in this act, unless the context otherwise requires:
  (a)  The term ``Community college'' means a public community col-
lege established under the provisions of this act. The official name of such
community college shall be ``the ____________ community college'' and the
blank shall be filled with the name of the city or county.
  (b)  The term ``State board'' means the state board of education.
  (c)  The term ``Community college district'' means the taxing district
of a community college.
  (d)  The term ``Board of trustees'' means the governing body of a
community college.
  (e)  The term ``State plan'' means the plan adopted for community
colleges as heretofore provided by law, and such plan as it is from time
to time amended by the state board upon recommendation of the advisory
council; such plan may include other matters listed in the ``community
college act'' and acts amendatory thereof, or supplemental thereto.
  (f)  The term ``Campus'' means the location of all or part of the build-
ings and facilities of a community college.
  (g)  The term ``Advisory council'' means the advisory council provided
for by K.S.A. 71-901, and amendments thereto.
  (h)  The term ``state department of education'' means the department
of, and which is administered by and under the direction of, the state
board.
  (i)  The term ``director'' means the person appointed by the state
board to be responsible for staff duties of the supervision of community
colleges.
  (j) (h)  The term ``Student tuition'' means the charge made to and
paid by students for the privilege of attending a community college and
participation participating in the institutional program.
  (k) (i)  The term ``Chief school administrator'' means the president or
one so appointed by the board of trustees.
  Sec. 18.  K.S.A. 71-801 is hereby amended to read as follows: 71-801.
Community colleges are under the supervision of the state board of ed-
ucation regents.
  Sec. 19.  K.S.A. 71-802 is hereby amended to read as follows: 71-802.
At any time, if the state board of education regents finds that a community
college previously approved or deemed approved has failed to comply
with the provisions of this act or with any provision of a rule or regulation
adopted pursuant to this act, or fails to meet the standards contained in
this act, the state board of education regents shall so advise the board of
trustees thereof. If after twelve (12) 12 calendar months after any such
notification such board of trustees has failed to correct the deficiency
noted, the state board of education regents shall withdraw approval of the
community college and it shall not be entitled to an operating grant from
the state aid during the continuance of any such period of withdrawal.
Any action of the state board of education regents in granting, denying
or withdrawing approval of a community college shall be subject to review
by the legislature.
  Sec. 20.  K.S.A. 71-901 is hereby amended to read as follows: 71-901.
There is hereby established the advisory council of community colleges
which shall be composed of eleven (11) 11 members who shall be ap-
pointed by the governor with qualifications and terms as follows:
  (a)  One member of the board of regents nominated by the board of
regents for a term concurrent with his or her the member's term as mem-
ber of the board of regents;
  (b)  one member of the state board of education nominated by the
state board of education for a term concurrent with his or her the mem-
ber's term as member of the state board of education;
  (c)  one chief administrator of a community college for a term con-
current with his or her the chief administrator's term as such chief ad-
ministrator, but not exceeding four (4) years;
  (d)  one member of a board of trustees of a community college for a
term concurrent with his or her the member's term on such board of
trustees, but not to exceed exceeding four (4) years;
  (e)  a representative of private colleges nominated by the Kansas as-
sociation of private colleges for a term not to exceed exceeding four (4)
years;
  (f)  a representative of the secondary schools for a term not to exceed
exceeding four (4) years;
  (g)  a president of one of the state universities for a term not to exceed
exceeding four (4) years;
  (h)  four (4) persons, selected by the governor, who are representative
of labor, business and industry, agriculture, and the professions for terms
of four years.
  As vacancies occur or terms expire for members of the advisory council,
appointments of successors shall be made as for the appointments of their
predecessors.
  The state board and the director of vocational education shall be no-
tified of all meetings of the advisory council and may attend the same but
shall not be voting members thereof.
  Members of the advisory council attending meetings of such council,
or attending a subcommittee meeting thereof authorized by such council,
shall be paid amounts provided in subsection (e) of K.S.A. 75-3223, and
amendments thereto.
  Sec. 21.  K.S.A. 71-902 is hereby amended to read as follows: 71-902.
The advisory council shall hold two regular meetings each year. The coun-
cil shall elect a chairman chairperson and vice-chairman vice-chairperson.
The director of vocational education administration shall serve as
secretary of the advisory council but he shall not be a voting member
thereof. Meetings of the advisory council may be called by the state board
of education regents or by the chairman chairperson and one member of
the advisory council or by any four (4) members of the advisory council.
All meetings of the advisory council shall be held in the city of Topeka
or at such place as shall be determined by the advisory council.
  Sec. 22.  K.S.A. 71-1104 is hereby amended to read as follows: 71-
1104. Whenever an election for approval of the establishment of a com-
munity college is held as provided in subsection (d) of K.S.A. 71-1103,
and amendments thereto, the results of such election shall be certified to
the state board by the election officer of each county in which there is
located any part of the territory of the proposed community college, to.
The state board of education who shall tabulate and canvass the vote if
more than one county is involved, and shall examine the vote if only one
county is involved. After such examination or canvass the state board of
education shall announce the result of the election and if it finds that a
majority of those voting at the election voted in favor of the proposition
to establish the community college, it shall so announce and issue an order
establishing the same.
  Sec. 23.  K.S.A. 71-1105 is hereby amended to read as follows: 71-
1105. The order of the state board of education establishing any com-
munity college shall specify contain the following:
  (1)  Describe (a) A description of the territory of the community col-
lege district.
  (2)  State (b) A statement of the legal name of the community college.
  (3)  Fix (c) The effective date of the establishment of the community
college for the purpose of taxation.
  (4)  Fix (d) The date that courses may first be offered by the com-
munity college.
  (5)  Fix (e) The date of the first election of members of the board of
trustees, and a date two weeks prior thereto upon which the primary
election, if needed, shall be held.
  (6)  Name (f) A designation of the voting plan and method of election
which shall initially apply in such community college district, and the
voting plan and method of election shall be selected from those specified
in chapter 71 of Kansas Statutes Annotated. If a member district method
is selected the boundary of each member district shall be set forth.
  (7)  Specify (g) A specification of the election officer or officers who
shall be locally responsible for conduct of the first election of trustees,
and if more than one election officer is involved, the order shall also
provide for certification of the results in each county to the state board
of education for canvass of the vote and announcement and certification
of the final result thereof, both in the primary and general elections.
  (8)  Fix (h) The date and place of the first meeting of the board of
trustees.
  Sec. 24.  K.S.A. 71-1106 is hereby amended to read as follows: 71-
1106. The order establishing any new community college shall be certified
to the election officer or officers of the county or counties in which any
part of the territory of the community college is located, and to the board
of education of any sponsoring school district, and a copy of such order
shall be filed in the records of the state board of education.
  Sec. 25.  K.S.A. 71-1201 is hereby amended to read as follows: 71-
1201. Territory may be added to any community college district which
has been established under this act either by deemed approval or by
election approval by one of the following methods:
  (a)  The board of education of any unified district a part of which is
in the community college district or which touches and adjoins a com-
munity college district may petition the state board of education for at-
tachment of the territory of such unified district to the community college
district for community college purposes. Upon receiving any petition un-
der this subsection, the same shall be submitted to the advisory council
for its advice and recommendations which, together with the petition,
shall be presented to the state board of education. After considering the
petition the state board of education may approve such attachment, if the
advisory council has so recommended. If the advisory council has not so
recommended the state board of education shall so inform the board of
trustees of the community college involved and may request its recom-
mendation as to such attachment. If such request is made and if such
board of trustees recommends such attachment the same may be ap-
proved by the state board of education. Upon granting any approval for
attachment of territory the state board of education shall so inform the
county election officers of counties in which the territory to be attached
is located, and such county election officers shall conduct an election for
approval for such attachment in the area petitioned for attachment. Such
election shall be conducted in accordance with the procedure for approval
for establishment of a community college as specified in this act. The
question submitted shall be: ``Shall the proposed attachment of territory
to the ____________ community college district be approved?'', and the
blank shall be filled by with the name of the community college. The
expenses of the election shall be paid by the community college. In the
event that such attachment is so approved by such election the state board
of education shall issue an order attaching the same to the community
college district. The provision provisions of subsection (b) of K.S.A. 71-
1102, and amendments thereto, shall also apply to this subsection.
  (b)  Any board of trustees may petition the state board of education
for the attachment of any adjoining territory to the community college
district. Such petition shall be processed as in subsection (a) of this sec-
tion, except that in the event of disapproval by the advisory council the
state board of education shall so inform the board of trustees and in such
case such attachment shall not be made. If the advisory council approves
such petition, the state board of education shall direct notify the county
election officers of counties in which the territory to be attached is lo-
cated, and such county election officers shall conduct an election for ap-
proval of such attachment in the area petitioned for attachment. No at-
tachment of territory shall be made under this subsection (b) unless such
attachment has been approved by a majority of those voting in the ter-
ritory to be attached. Such election shall be conducted in accordance with
the procedure for approval of the establishment of community colleges
as specified in this act. The question submitted shall be: ``Shall the pro-
posed attachment of territory to the ____________ community college dis-
trict be approved?'', and the blank shall be filled with the name of the
community college. In the event that such attachment is so approved by
such election the state board of education shall issue an order attaching
the same to the community college district. The expenses of the election
shall be paid by the community college.
  (c)  No territory shall be attached to any community college district
within one hundred and twenty (120) 120 days prior to the general elec-
tion of members of the board of trustees.
  (d)  In the event that If the community college attaching territory
under subsection subsections (a) or (b) of this section has member district
method of election, no approval thereof shall be given by the state board
of education and no proposition for approval thereof shall be submitted
to any election until new proposed member districts for the community
college territory as the same will exist after the addition of territory have
been established by the state board of education.
  Sec. 26.  K.S.A. 71-1309 is hereby amended to read as follows: 71-
1309. Unless the context otherwise requires, As used in article 13 of
chapter 71 of Kansas Statutes Annotated: (a) State board`` means the
constitutional state board of education regents.
  (b)  ``County election officer'' means the election commissioner in
counties having which have an election commissioner, and the county
clerk in counties which do not have an election commissioner.
  Sec. 27.  K.S.A. 71-1406 is hereby amended to read as follows: 71-
1406. (a) Determination of any community college to change from one
method of election to another method of election shall be by either one
of the following:
  (1)  The board, by a majority vote of the members-elect thereof, may
adopt a resolution to change the method of election. Such resolution shall
specify the existing method of election, and the proposed method of elec-
tion, together with a statement that the change will be made only after
the proposed change and plan for change are first approved by the state
board of education.
  (2)  The board, by a majority vote of the members-elect thereof, may
adopt a resolution to change the method of election. Such resolution shall
specify the existing method of election and the proposed method of elec-
tion, together with a statement that the change will not be made unless
approved by a majority of the electors of the community college district
voting at an election at which the question is submitted. Such resolution
shall state that the plan of change is filed in the office of the clerk of the
board.
  (b)  Every plan of change shall also state the existing and proposed
voting plan of the community college district, and such voting plan shall
be one of the three (3) voting plans specified in K.S.A. 71-1420, and
amendments thereto.
  Sec. 28.  K.S.A. 71-1507 is hereby amended to read as follows: 71-
1507. (a) The board of trustees of any community college and the board
of any area vocational school or area vocational-technical school may make
and enter into agreements providing for the transfer from the area vo-
cational school or area vocational-technical school to the community col-
lege of any approved vocational education program being offered and
taught at the postsecondary level in the area vocational school or area
vocational-technical school.
  (b)  In the event the board of trustees of a community college and
the board of an area vocational school or area vocational-technical school
enter into an agreement authorized under subsection (a), the following
conditions shall apply:
  (1)  The state board of regents and the state board of education shall
be notified of the agreement at the time the agreement is executed.
  (2)  The agreement shall be effective only after approval by the state
board of education regents.
  (3)  Any vocational education program transferred in accordance with
the agreement shall be offered and taught in the community college only
after approval of the program by the state board of education.
  (4)  The agreement shall be subject to change or termination by the
legislature.
  (5) (A)  The duration of the agreement shall be perpetual unless ter-
minated in accordance with provision (B).
  (B)  Termination of the agreement may be accomplished only upon
approval by the state board of education regents of a joint petition to it
for termination by the contracting boards after adoption of a resolution
to that effect by each such board. The state board of education regents
shall consider the petition and approve or disapprove termination of the
agreement. Upon termination of the agreement, any program transferred
thereunder shall be discontinued.
  Sec. 29.  K.S.A. 71-1702 is hereby amended to read as follows: 71-
1702. (a) The governing body of an area vocational school or area voca-
tional-technical school which is consolidated with and made a part of a
community college in accordance with the provisions of this act shall enter
into a consolidation agreement with the board of trustees of the com-
munity college with which such area vocational school or area vocational-
technical school is consolidated.
  (b)  Every consolidation agreement entered into under this section
shall provide for:
  (1)  The disposition of all real property of the affected area vocational
school or area vocational-technical school, which disposition shall not be
in contravention of the provisions of subsection (d) of K.S.A. 71-201, and
amendments thereto;
  (2)  the disposition of all personal property, records and moneys, in-
cluding state and federal financial aid, of the affected area vocational
school or area vocational-technical school;
  (3)  the payment of all lawful debts of the affected area vocational
school or area vocational-technical school, including any outstanding
bonded indebtedness attributable to the operation thereof;
  (4)  the payment of all accrued compensation or salaries of all person-
nel of the affected area vocational school or area vocational-technical
school;
  (5)  the transfer of personnel, if such personnel are deemed necessary,
in the employment of the affected area vocational school or area voca-
tional-technical school to the employment of the community college; and
  (6)  such other matters as may need to be addressed as the result of
such consolidation by the affected area vocational school or area voca-
tional-technical school and the community college.
  (c)  Immediately upon execution of each consolidation agreement en-
tered into under this section, the state board of regents and the state
board of education shall be notified thereof by the board of trustees of
the affected community college. The state board boards shall review and
approve such consolidation agreement and upon approval of such agree-
ment, the state board, for purpose of determining credit hour state aid
under K.S.A. 71-602, and amendments thereto, of education shall issue
an order officially designating the community college as an area vocational
school.
  (d)  When any conflict arises as to the proper disposition of property,
records or funds or as to the assumption and payment of any debts as a
result of any consolidation effected under this act, such conflict shall be
determined and resolved by the state board of education regents and such
determination and resolution shall be final.
  Sec. 30.  K.S.A. 12-16,102 is hereby amended to read as follows: 12-
16,102. (a) Except as provided in this section, ``taxing subdivision'' means
any city, county, township, community college district or other political
subdivision of the state of Kansas having authority to levy taxes on taxable
tangible property. A community college district shall not be considered a
taxing subdivision for the purpose of this section. A school district shall
not be considered a taxing subdivision for the purpose of this section
except that any school district operating a public library pursuant to K.S.A.
72-1623, and amendments thereto, for that purpose, shall be considered
a taxing subdivision for the purpose of this section.
  (b)  Any taxing subdivision may create and establish employee benefits
contribution funds for (1) the taxing subdivision or (2) any political sub-
division for which a tax is levied by such taxing subdivision for the purpose
of paying the employer's share of any employee benefits, exclusive of any
salaries, wages or other direct payments to such employees, as may be
prescribed in the ordinance or resolution of the governing body creating
such funds. The taxing subdivision may receive and place in such funds
any moneys from any source whatsoever which may be lawfully utilized
for the purposes stated in the ordinance or resolution creating such funds,
including the proceeds of tax levies authorized by law for such purposes.
  (c)  The governing body of any taxing subdivision having established
employee benefits funds under subsection (b) is hereby authorized to levy
an annual tax upon all taxable tangible property within the taxing subdi-
vision in an amount determined by the governing body to be necessary
for the purposes for which such funds were created and to pay a portion
of the principal and interest on bonds issued under the authority of K.S.A.
12-1774, and amendments thereto, by cities located in the county.
  Sec. 31.  K.S.A. 72-7518a is hereby amended to read as follows: 72-
7518a. (a) The state board of education, or any institution under the
jurisdiction of such the state board, with the approval of the state board
of education thereof, may apply for, accept and receive any private do-
nation, gift, grant or bequest made for any purpose related to the oper-
ation or function of such board or institution. Such board or institution
may hold, administer and expend any such gift, grant or bequest in ac-
cordance with any terms or conditions imposed by the donor.
  (b)  The provisions of subsection (a) of this section shall do not apply
to any school district or any community junior college.
  Sec. 32.  K.S.A. 72-9002 is hereby amended to read as follows: 72-
9002. As used in this act:
  (a)  ``Board'' means the board of education of a school district, the
governing authority of any nonpublic school offering any of grades kin-
dergarten through 12 in accredited schools, the board of control of an
area vocational-technical school, and the board of trustees of a community
college.
  (b)  ``State board'' means, in the case of school districts, nonpublic
schools, and area vocational-technical schools, the state board of educa-
tion; and in the case of community colleges, the state board of regents.
  (c)  ``Employees'' means all certificated employees of school districts
and of nonpublic schools, all instructional and administrative employees
of area vocational-technical schools and all full-time employees of com-
munity colleges.
  (d)  ``Full-time employees of community colleges'' means instructional
and administrative employees who are under contract for services to a
community college for a term of not less than nine months and whose
services to a community college are considered their principal employ-
ment.
  (e)  ``School year'' means the period from July 1 to June 30.
  (f)  ``Accredited'' means accredited by the state board of education.
  Sec. 33.  K.S.A. 72-9006 is hereby amended to read as follows: 72-
9006. (a) Upon request of any board, the state board shall provide for
assistance in the preparation of policies of personnel evaluation or amend-
ments thereto.
  (b)  If, in the case of school districts, nonpublic schools, and area vo-
cational-technical schools, any board fails to file an adopted policy as
provided by this act, or if any such board fails to file any adopted amend-
ment to such policy within a reasonable time after adoption thereof, the
state board of education may apply penalties as prescribed by rules and
regulations applicable to accreditation of schools.
  (c)  If, in the case of community colleges, any board fails to file an
adopted policy as provided by this act, or if any such board fails to file
any adopted amendment to such policy within a reasonable time after
adoption thereof, the state board of regents may apply penalties as pre-
scribed by rules and regulations applicable to approval of community
colleges.
  Sec. 34.  K.S.A. 12-16,102, 71-202, 71-204, 71-211, 71-304, 71-305,
71-306, 71-401, 71-402, 71-403, 71-601, 71-605, 71-609a, 71-610, 71-612,
71-613, 71-615, 71-701, 71-801, 71-802, 71-901, 71-902, 71-1104, 71-
1105, 71-1106, 71-1201, 71-1309, 71-1406, 71-1507, 71-1702, 71-1705,
72-4424, 72-7518a, 72-9002 and 72-9006 and K.S.A. 1996 Supp. 71-201,
71-301, 71-406, 71-602, 71-603, 71-607, 71-609, 71-611, 71-613a and 71-
619 are hereby repealed.
  Sec. 35.  This act shall take effect and be in force from and after its
publication in the statute book.