Session of 1998
                   
SENATE BILL No. 590
         
By Committee on Education
         
2-4
            9             AN ACT establishing the Kansas student financial assistance fund in the
10             state treasury; requiring transfers to the fund from the economic de-
11             velopment initiatives fund; amending K.S.A. 79-4804 and repealing the
12             existing section.
13            
14       Be it enacted by the Legislature of the State of Kansas:
15           New Section 1. There is established in the state treasury the Kansas
16       student financial assistance fund. All moneys credited to the fund shall
17       be appropriated for the state board of regents to supplement amounts
18       appropriated from the state general fund for the regents supplemental
19       grant program, the state scholarship program, and the tuition grant pro-
20       gram. Expenditures of appropriations from the Kansas student financial
21       assistance fund shall be made for and in accordance with the programs
22       specified in this section.
23           Sec. 2. K.S.A. 79-4804 is hereby amended to read as follows: 79-
24       4804. (a) An amount equal to 85% of all moneys credited to the state
25       gaming revenues fund shall be transferred and credited to the state ec-
26       onomic development initiatives fund. Expenditures from the state eco-
27       nomic development initiatives fund shall be made in accordance with
28       appropriations acts for the financing of such programs supporting and
29       enhancing the existing economic foundation of the state and fostering
30       growth through the expansion of current, and the establishment and at-
31       traction of new, commercial and industrial enterprises as provided by this
32       section and as may be authorized by law and not less than 1/2 of such
33       money shall be distributed equally among the congressional districts of
34       the state. Except as provided by subsection subsections (g) and (h), all
35       moneys credited to the state economic development initiatives fund shall
36       be credited within the fund, as provided by law, to an account or accounts
37       of the fund which are created by this section.
38           (b) There is hereby created the Kansas capital formation account in
39       the state economic development initiatives fund. All moneys credited to
40       the Kansas capital formation account shall be used to provide, encourage
41       and implement capital development and formation in Kansas.
42           (c) There is hereby created the Kansas economic development re-
43       search and development account in the state economic development in-

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  1       itiatives fund. All moneys credited to the Kansas economic development
  2       research and development account shall be used to promote, encourage
  3       and implement research and development programs and activities in Kan-
  4       sas and technical assistance funded through state educational institutions
  5       under the supervision and control of the state board of regents or other
  6       Kansas colleges and universities.
  7           (d) There is hereby created the Kansas economic development en-
  8       dowment account in the state economic development initiatives fund. All
  9       moneys credited to the Kansas economic development endowment ac-
10       count shall be accumulated and invested as provided in this section to
11       provide an ongoing source of funds which shall be used for economic
12       development activities in Kansas, including but not limited to continuing
13       appropriations or demand transfers for programs and projects which shall
14       include, but are not limited to, specific community infrastructure projects
15       in Kansas that stimulate economic growth.
16           (e) Except as provided in subsection (f), the director of investments
17       may invest and reinvest moneys credited to the state economic develop-
18       ment initiatives fund in accordance with investment policies established
19       by the pooled money investment board under K.S.A. 75-4232, and
20       amendments thereto, in the pooled money investment portfolio. All mon-
21       eys received as interest earned by the investment of the moneys credited
22       to the state economic development initiatives fund shall be deposited in
23       the state treasury and credited to the Kansas economic development en-
24       dowment account of such fund.
25           (f) Moneys credited to the Kansas economic development endow-
26       ment account of the state economic development initiatives fund may be
27       invested in government guaranteed loans and debentures as provided by
28       law in addition to the investments authorized by subsection (e) or in lieu
29       of such investments. All moneys received as interest earned by the in-
30       vestment under this subsection of the moneys credited to the Kansas
31       economic development endowment account shall be deposited in the
32       state treasury and credited to the Kansas economic development endow-
33       ment account of the state economic development initiatives fund.
34           (g) In each fiscal year, the director of accounts and reports shall make
35       transfers in equal amounts on July 15 and January 15 which in the aggre-
36       gate equal $2,000,000 from the state economic development initiatives
37       fund to the state water plan fund created by K.S.A. 82a-951, and amend-
38       ments thereto. No other moneys credited to the state economic devel-
39       opment initiatives fund shall be used for: (1) Water-related projects or
40       programs, or related technical assistance; or (2) any other projects or
41       programs, or related technical assistance, which meet one or more of the
42       long-range goals, objectives and considerations set forth in the state water
43       resource planning act.

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  1           (h) In each fiscal year, the director of accounts and reports shall make
  2       transfers in equal amounts on July 15 and January 15 which amounts in
  3       the aggregate equal $3,000,000 from the state economic development in-
  4       itiatives fund to the Kansas student financial assistance fund established
  5       by section 1, and amendments thereto.
  6           Sec. 3. K.S.A. 79-4804 is hereby repealed.
  7           Sec. 4. This act shall take effect and be in force from and after its
  8       publication in the statute book.
  9