HOUSE BILL No. 2792

      An Act concerning the state fair; transferring moneys and obligations of the non-fair days
      activities fee fund to the state fair fee fund; abolishing the non-fair days activities fee
      fund; consolidating local bank accounts; amending K.S.A. 2-205 and 2-223 and repealing
      the existing sections.

Be it enacted by the Legislature of the State of Kansas:

    Section 1. K.S.A. 2-205 is hereby amended to read as follows: 2-205.
(a) (1) All moneys received by the state fair board through the operation
of the state fair and from any and all other sources directly related to the
operation of the state fair shall be remitted to the state treasurer at least
monthly. Upon receipt of each such remittance the state treasurer shall
deposit the entire amount thereof in the state treasury and the same shall
be credited by the state treasurer to the credit of the state fair fee fund,
which is hereby created.

    (2) During the period beginning July 1 and extending to December
31 of each fiscal year, moneys in the state fair fee fund, and appropriations
for the operation of the state fair from the state general fund made for
the state fair, or the state fair board, may be transferred from the state
treasury to a bank in Reno county, Kansas, to the account of the state fair
board, upon vouchers of the state fair board, for its use to establish the
state fair board local bank account. The moneys in the state fair board
local bank account may be used by the state fair board (A) in operating
and conducting a state fair, including but not by way of limitation, the
payment of labor, salaries of part-time employees, prizes and awards and
as provided by this section, and (B) in operating and promoting non-fair
days events. The state treasurer and the director of accounts and reports
are authorized and directed to honor all such vouchers and orders of the
state fair board, and to make such transfers as directed.

    (3) (A) During the period beginning July 1 and extending to Decem-
ber 31 of each fiscal year, the state fair board, is authorized to may expend
moneys on deposit to its credit in any Reno county, Kansas, the state fair
board local bank account, for the operation and promotion of the state
fair and non-fair days events, by approved vouchers directed to the trea-
surer of the state fair board, and by the issuance of checks by the treasurer
of the board to the persons entitled thereto as shown upon such vouchers,
and. All such expenditures may be made without compliance with any of
the provisions of any act contained in article 37 of chapter 75 of the Kansas
Statutes Annotated, or acts amendatory of the provisions thereof or sup-
plemental thereto.

    (3) (B) During the period beginning July May 1 and extending to
December October 31 of each year, the state fair board may employ labor
and personnel in conjunction with the current operation of the state fair,
without compliance with the provisions of any act contained in article 29
of chapter 75 of the Kansas Statutes Annotated, or acts amendatory of
the provisions thereof or supplemental thereto. This authority to employ
shall not be construed as authorizing the board to employ its normal
classified service employees on a different basis for all or any part of that
six-month period.

    (4) On or before each June 30, all unencumbered moneys on deposit
to the credit of the state fair board in a Reno county, Kansas, bank on
December 31 of each year, the state fair board local bank account shall
be transferred back to the state treasury to the credit of the state fair fee
fund or appropriation from the state general fund according as each may
be entitled. All moneys in the state fair fee fund may be used for the
payment of checks drawn against the same state fair board local bank
account upon vouchers drawn by the state fair board. It shall be the duty
of Upon the close of accounts for each fiscal year, the state fair board to
shall submit on or before December 31 of each year a full and complete
object classification report for such fiscal year on all moneys collected by
and expended by the state fair board to the director of accounts and
reports.

    (b) (1) All moneys received by the state fair board through the op-
eration and promotion of non-fair days events held on the state fair-
grounds on those days which have not been designated as official state
fair days, herein referred to as non-fair days events, shall be deposited in
a separate account established in a bank in Reno county, Kansas, the state
fair board local bank account for use for non-fair days events by the state
fair board and as provided by this section. All expenses incurred in the
operation and promotion of non-fair days events shall be paid from the
separate state fair board local bank account established for non-fair days
events by issuance of checks by the treasurer of the state fair board or a
person designated by such treasurer and the balance of the money in such
account after payment of all such expenses shall be remitted to the state
treasurer by the state fair board. Upon receipt of such remittance the
state treasurer shall deposit the entire amount thereof in the state treasury
and the same shall be credited by the state treasurer to the non-fair days
activities fee fund. Moneys in the non-fair days activities fee fund may be
transferred from the state treasury to a bank in Reno county, Kansas, to
a separate account established for non-fair days events, by the state fair
board, upon vouchers of the state fair board, for its use in the operation
and promotion of events held on the state fairgrounds on those days which
have not been designated as official state fair days. The state treasurer
and the director of accounts and reports are authorized and directed to
honor all such vouchers and orders of the state fair board, and to make
such transfers as directed. The state fair board is authorized to expend
moneys on deposit to its credit in the non-fair days events account in any
Reno county, Kansas, bank, by approved vouchers directed to the trea-
surer of the state fair board, and by the issuance of checks by the treasurer
of the board to the persons entitled thereto as shown upon such vouchers,
and all such expenditures may be made without compliance with any of
the provisions of any act contained in article 37 of chapter 75 of the Kansas
Statutes Annotated, or acts amendatory of the provisions thereof or sup-
plemental thereto.

    (2) On or before April 1 of each year, the state fair board shall make
a full and complete report of all moneys expended from the non-fair days
events account in the previous year to the director of accounts and re-
ports.

    (c) Each The state fair board local bank account required for use in
operating and conducting a promoting the state fair under subsection (a)
or non-fair days events under subsection (b) this section shall be awarded
to a bank in Reno county, Kansas, by the pooled money investment board
under a written agreement in accordance with procedures for state bank
accounts under K.S.A. 75-4217 and amendments thereto and shall be
secured by pledge of securities in the manner prescribed for state bank
accounts under K.S.A. 75-4218 and amendments thereto and in the
amount prescribed for fee agency accounts under that statute.

    (d) (1) Upon request of the state fair board, the director of accounts
and reports shall authorize the state fair board to establish a change fund
for the purposes of the state fair for use on those days not designated as
official state fair days in an amount of not to exceed $15,000 to be main-
tained in the form of cash. For the purposes of establishing such change
fund, moneys may be withdrawn from moneys available therefor in a the
state fair board local bank account established under subsection (a) for
use in operating and conducting a state fair or from moneys available
therefor in a bank account established under subsection (b) for use in
operating and conducting non-fair days events, or from both such ac-
counts in accordance with the need therefor.

    (2) The moneys in a change fund established under this subsection
(d) shall be used exclusively for the making of change in receiving
amounts for the purposes of the state fair on those days not designated
as official state fair days. No advance or expenditure shall be made from
such change fund.

    (e) (1) Upon request of the state fair board, the director of accounts
and reports shall authorize the state fair board to establish a change fund
for non-fair days events in an amount of not to exceed $15,000 to be
maintained in the form of cash. For the purposes of establishing a non-
fair days events change fund, moneys may be withdrawn from moneys
available therefor in a the state fair board local bank account established
under subsection (a) for use in operating and conducting a state fair or
from moneys available therefor in a bank account established under sub-
section (b) for use in operating and conducting non-fair days events, or
from both such accounts in accordance with the need therefor.

    (2) The moneys in the non-fair days events change fund shall be used
exclusively for the making of change in receiving amounts in operating
and conducting the non-fair days events during the non-fair days period.
No advance or expenditure shall be made from such change fund.

    (f) (1) Except as otherwise provided in this section, each change fund
established under subsection (d) or (e) shall be administered in the same
manner as change funds authorized in accordance with K.S.A. 75-3078
and amendments thereto and shall be subject to the procedures and re-
imbursement and reporting provisions of that statute or such procedures
and reporting requirements as may be prescribed by the director of ac-
counts and reports under that statute. The director of accounts and re-
ports may authorize a reconciling entry in any reconciliation statement
for any such change fund in an amount of not to exceed the maximum
authorized by K.S.A. 75-3078 and amendments thereto for change funds
authorized in accordance with that statute.

    (2) All officers and employees of the state fair board having custody
of moneys of a change fund established under subsection (d) or (e) shall
be covered by a blanket surety contract purchased by the committee on
surety bonds and insurance in such amount or amounts and upon such
terms and conditions as the committee on surety bonds and insurance
deems necessary and proper in accordance with the provisions of K.S.A.
75-4103, 75-4104 and 75-4105, and amendments thereto.

    (g) As used in this section:

    (1) ``Non-fair days event'' means an event held on the state fair-
grounds on those days which have not been designated as official state
fair days; and

    (2) ``state fair board local bank account'' means the account estab-
lished and maintained for the state fair board in a bank located in Reno
county, Kansas, as authorized by this section.

    (h) On the effective date of this act, the director of accounts and re-
ports shall transfer all moneys in the non-fair days activities fee fund to
the state fair fee fund. On the effective date of this act, all obligations of
the non-fair days activities fee fund are hereby transferred to and imposed
on the state fair fee fund. On the effective date of this act, the non-fair
days activities fee fund is hereby abolished.

    Sec. 2. K.S.A. 2-223 is hereby amended to read as follows: 2-223. (a)
There is hereby established in the state treasury the state fair capital
improvements fund. All expenditures of moneys in the state fair capital
improvements fund shall be used for the payment of capital improve-
ments and maintenance for the state fairgrounds and the payment of
capital improvement obligations that have been financed. Capital im-
provement projects for the Kansas state fairgrounds are hereby approved
for the purposes of subsection (b) of K.S.A. 74-8905 and amendments
thereto and the authorization of the issuance of bonds by the Kansas
development finance authority in accordance with that statute.

    (b) On June 30, 1989, and on each June 30 thereafter, the state fair
board shall certify to the director of accounts and reports an amount to
be transferred from the state fair fee fund to the state fair capital im-
provements fund, which amount shall be not less than the amount equal
to 5% of the total gross receipts during the current fiscal year from state
fair activities and non-fair days activities. Such certification also shall spec-
ify what portion of the amount certified is to be transferred from the state
fair fee fund and what portion is to be transferred from the non-fair days
activities fee fund. Upon receipt of such certification, the director of ac-
counts and reports shall transfer moneys from the state fair fee fund to
the state fair capital improvements fund in the amounts and from the
funds specified in accordance with such certification.

    (c) On July 1, 1989, and on each July 1 thereafter, the director of
accounts and reports shall transfer from the state general fund to the state
fair capital improvements fund, an amount equal to the amount certified
by the state fair board pursuant to subsection (b), except that no transfer
from the state general fund under this subsection shall exceed $300,000
in any fiscal year.

    Sec. 3. K.S.A. 2-205 and 2-223 are hereby repealed.

    Sec. 4. This act shall take effect and be in force from and after its
publication in the Kansas register.

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.

Aproved __________________________

__________________________________

Governor.