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Session of 2000
          HOUSE BILL No. 3018           By Committee on Taxation           3-3          

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  9             AN  ACT relating to state agencies; concerning the closure or relocation
10             of certain programs or functions; concerning officers and employees
11             laid off therefrom; prescribing certain disposition of certain property;
12             benefits and procedures; KIB contingency fund; amending K.S.A. 75-
13             4370, 75-4371, 75-4372, 75-4373, 75-4374, 75-4375 and 75-4376 and
14             K.S.A. 1999 Supp. 46-233 and 75-6801 and repealing the existing
15             sections.
16      
17       Be it enacted by the Legislature of the State of Kansas:
18             New Section  1. (a) (1) If Kansas industries for the blind, which is
19       located on Topeka state hospital property as defined by K.S.A. 1999 Supp.
20       75-37,123 and amendments thereto, is sold, closed, abolished or other-
21       wise ceases operations as a state program, the secretary of social and
22       rehabilitation services shall sell and dispose of the assets of Kansas in-
23       dustries for the blind in a manner determined by the secretary to maxi-
24       mize the amount of proceeds derived from such sale.
25             (2) Each sale or other disposition of the assets of Kansas industries
26       for the blind shall be exempt from the provisions of K.S.A. 75-3739, and
27       amendments thereto, except that bidding procedures which are not in
28       conflict with K.S.A. 75-3739, and amendments thereto, may be used be-
29       fore awarding any contract under this section.
30             (3) The provisions of K.S.A. 75-6601 through 75-6608 and 75-7101
31       through 75-7107, and amendments thereto, shall not apply to actions
32       under this section.
33             (b) If Kansas industries for the blind is sold, closed, abolished or
34       otherwise ceases operation as a state program, there shall be created in
35       the state treasury the KIB contingency fund which shall be administered
36       by the director of the Kansas division of services for the blind. Revenue
37       from the following sources shall be deposited in the state treasury and
38       credited to the KIB contingency fund:
39             (1) Proceeds from the sale of that portion of the Topeka state hospital
40       property, as defined by K.S.A. 1999 Supp. 75-37,123 and amendments
41       thereto, occupied by Kansas industries for the blind at the time of the
42       sale, closure, abolishment or other cessation of operations as a state
43       program;

2
  1             (2) all moneys received for accounts receivable of the Kansas indus-
  2       tries for the blind;
  3             (3) proceeds from the sale of the inventory of finished goods and
  4       works in progress of the Kansas industries for the blind;
  5             (4) proceeds from the sale of the inventory of raw materials of the
  6       Kansas industries for the blind;
  7             (5) proceeds from the sale of the capital assets of the Kansas indus-
  8       tries for the blind; and
  9             (6) the net amount of moneys in the social welfare fund and any other
10       special revenue fund that constitute fees and other revenues attributable
11       to the Kansas industries for the blind program of the department of social
12       and rehabilitation services.
13             (c) Moneys deposited in the KIB contingency fund shall be expended
14       only for the purposes prescribed in subsection (f).
15             (d) On or before the 10th day of each month, the director of accounts
16       and reports shall transfer from the state general fund to the KIB contin-
17       gency fund interest earnings based on:
18             (1) The average daily balance of moneys in the KIB contingency fund
19       for the preceding month; and
20             (2) the net earnings of the pooled money investment portfolio for the
21       preceding month.
22             (e) All expenditures from the KIB contingency fund shall be in ac-
23       cordance with appropriation acts upon warrants of the director of ac-
24       counts and reports issued pursuant to vouchers approved by the director
25       of the Kansas division of services for the blind for the purposes set forth
26       in subsection (f).
27             (f)  (1) Within the limits of appropriations therefor, the director of
28       the Kansas division of services for the blind shall establish and administer
29       a grant program and make awards from the KIB contingency fund for
30       the purposes of establishing or reopening a facility to provide industrial
31       employment to the blind, within the city limits of the city of Topeka. Only
32       organizations which are charitable not-for-profit organizations which are
33       exempt from federal income taxation pursuant to section 501 (c)(3) of the
34       federal internal revenue code of 1986, as amended, or an agency of state
35       or local government, or any instrumentality thereof, shall be eligible to
36       receive a grant award under this section.
37             (2) Except as provided in subsection (f)(3), a grantee shall not be
38       eligible for an award unless such grantee agrees to comply with all of the
39       following provisions:
40             (A) Not less than 75% of all persons employed by the grantee to
41       perform direct labor at the new facility providing industrial employment
42       for the blind shall meet the definition of blindness prescribed for use in
43       determining eligibility under the federal social security administration;

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  1             (B) each grantee shall be affiliated, or shall seek affiliation with, na-
  2       tional industries for the blind;
  3             (C) each grantee shall be authorized or shall be seeking authorization
  4       to sell products under provisions of K.S.A. 75-3317 et seq., and amend-
  5       ments thereto; and
  6             (D) each grantee shall agree to provide equal to or greater than wages
  7       and benefits as paid to all blind persons who were employed by Kansas
  8       industries for the blind at the time Kansas industries for the blind was
  9       sold, closed, abolished or otherwise ceased operating as a state program,
10       to any blind person accepting employment at the new facility providing
11       industrial employment to the blind if such blind person was employed by
12       Kansas industries for the blind on or after the date which is two years
13       before the date of such sale, closure, abolishment or other cessation of
14       operations of Kansas industries for the blind as a state program.
15             (3) Each grant applicant, which is a charitable not-for-profit organi-
16       zation which is exempt or has applied for exemption from federal income
17       taxation pursuant to section 501 (c)(3) of the federal internal revenue
18       code of 1986, as amended, and which has a majority of members of its
19       board of directors who are former employees of Kansas industries for the
20       blind, shall be given preference in the award of grants. If no grant appli-
21       cant is qualified for a preference under this subsection, or if no applicant
22       is able to comply with the provisions of subsection (f)(2), then grants shall
23       be awarded from the KIB contingency fund on a competitive basis. The
24       director of Kansas division of services for the blind shall adopt standards
25       to be used to review grant applicants when grants are awarded on a com-
26       petitive basis to assure that the applicant with the best chance of opera-
27       tional success is chosen pursuant to this subsection (f)(3).
28             Sec.  2. K.S.A. 1999 Supp. 46-233 is hereby amended to read as fol-
29       lows: 46-233. (a) (1) No state officer or employee shall in the capacity as
30       such officer or employee be substantially involved in the preparation of
31       or participate in the making of a contract with any person or business by
32       which such officer or employee is employed or in whose business such
33       officer or employee or any member of such officer's or employee's im-
34       mediate family has a substantial interest and no such person or business
35       shall enter into any contract where any state officer or employee, acting
36       in such capacity, is a signatory to, has been substantially involved in the
37       preparation of or is a participant in the making of such contract and is
38       employed by such person or business or such officer or employee or any
39       member of such officer's or employee's immediate family has a substantial
40       interest in such person or business.
41             (2) Except as otherwise provided in this subsection, whenever any
42       individual has participated as a state officer or employee in the making
43       of any contract with any person or business, such individual shall not

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  1       accept employment with such person or business as an employee, inde-
  2       pendent contractor or subcontractor until two years after performance of
  3       the contract is completed or until two years after the individual terminates
  4       employment as a state officer or employee, whichever is sooner. This
  5       prohibition on accepting employment shall not apply in any case in which:
  6       (A) A state officer or employee who participated in making a contract
  7       while employed by an institution that is subsequently closed or abolished
  8       or otherwise ceases operations or that has budget reductions imposed
  9       that are associated with such closure and who is laid off from employment
10       with such institution for the reason of such closure, abolition or cessation
11       of operations or such imposition of budget reductions; or (B) a state of-
12       ficer or employee who participated in making a contract while employed
13       by an institution that is scheduled to be closed or abolished or to cease
14       operations, who is scheduled to be laid off from employment with such
15       institution for the reason of the scheduled closure, abolition or cessation
16       of operations, and who voluntarily terminates such employment after re-
17       ceiving such state officer or employee's notice of the scheduled layoff;
18       (C) a state officer or employee who participated in making a contract
19       while employed by the department of corrections at the Topeka correc-
20       tional facility and who is laid off from such employment due to the transfer
21       of the reception and diagnostic center from the Topeka correctional fa-
22       cility to the El Dorado correctional facility; or (D) a state officer or em-
23       ployee who participated in making a contract while employed by the de-
24       partment of corrections at the Topeka correctional facility and who
25       voluntarily terminates from such employment after receiving such state
26       officer or employee's notice of scheduled layoff due to the transfer of the
27       reception and diagnostic center from the Topeka correctional facility to
28       the El Dorado correctional facility. As used in this subsection (a)(2), ``laid
29       off'' and ``layoff'' mean, in the case of a state officer or employee in the
30       classified service under the Kansas civil service act, being laid off under
31       K.S.A. 75-2948, and amendments thereto, and, in the case of a state
32       officer or employee in the unclassified service under the Kansas civil
33       service act, being terminated from employment with the state agency by
34       the appointing authority, except that ``laid off'' and ``layoff'' shall not in-
35       clude any separation from employment pursuant to a budget reduction
36       or expenditure authority reduction and a reduction of F.T.E. positions
37       under K.S.A. 75-6801, and amendments thereto; and ``institution'' means
38       Topeka state hospital or Winfield state hospital and training center.
39             (b) No individual shall, while a legislator or within one year after the
40       expiration of a term as legislator, be interested pecuniarily, either directly
41       or indirectly, in any contract with the state, which contract is funded in
42       whole or in part by any appropriation or is authorized by any law passed
43       during such term, except that the prohibition of this subsection (b) shall

5
  1       not apply to any contract interest in relation to which a disclosure state-
  2       ment is filed as provided by K.S.A. 46-239, and amendments thereto.
  3             (c) No individual, while a legislator or within one year after the ex-
  4       piration of a term as a legislator, shall represent any person in a court
  5       proceeding attacking any legislative action taken or enactment made dur-
  6       ing any term such individual served as a legislator as being unconstitu-
  7       tional because of error in the legislative process with respect to such
  8       action or enactment unless such legislator voted no upon the enactment
  9       of the measure and declared on the record, during such term, that such
10       legislation was unconstitutional. The prohibition of this subsection (c)
11       shall not apply to a current or former legislator charged with a violation
12       of such legislative action or enactment.
13             (d) Subsections (a) and (b) shall not apply to the following:
14             (1) Contracts let after competitive bidding has been advertised for by
15       published notice; and
16             (2) Contracts for property or services for which the price or rate is
17       fixed by law.
18             (e) When used in this section:
19             (1) ``Substantial interest'' shall have the same meaning ascribed
20       thereto by K.S.A. 46-229, and amendments thereto, and any such interest
21       held within the preceding 12 months of the act or event of participating
22       in the preparation of making a contract.
23             (2) ``Substantially involved in the preparation or participate in the
24       making of a contract'' means having approved or disapproved a contract
25       or having provided significant factual or specific information or advice or
26       recommendations in relation to the negotiated terms of the contract.
27             Sec.  3. K.S.A. 75-4370 is hereby amended to read as follows: 75-
28       4370. (a) In establishing certified pools of eligible candidates under the
29       Kansas civil service act, a preference shall be given to each state officer
30       or employee (1) who (1)(A) is in the classified service under the Kansas
31       civil service act and is employed by an institution that is closed or abol-
32       ished or otherwise ceases operations or that is scheduled for such closure,
33       abolition or cessation of operations and has a budget reduction imposed
34       that is associated with such closure, abolition or cessation of operations,
35       and (2) who (B) is laid off from employment with such institution for the
36       reason of such closure, abolition or cessation of operations or such im-
37       position of a budget reduction, and (3) who (C) remains in such employ-
38       ment until the date the officer or employee is laid off or (2) (A) is in the
39       classified service under the Kansas civil service act and is laid off from
40       employment at the Topeka correctional facility due to the transfer of the
41       reception and diagnostic unit from the Topeka correctional facility to the
42       El Dorado correctional facility, and (B) remains in such employment until
43       the date the officer or employee is laid off.

6
  1             (b) To qualify for the preference established by this section, a person
  2       described in subsection (a) also shall meet the requirements for the vacant
  3       position. In addition to other applicable provisions of the Kansas civil
  4       service act and rules and regulations and policies adopted thereunder,
  5       the preference established by this section (1) shall place the person into
  6       the reemployment pool, (2) shall provide an opportunity for an interview
  7       for any vacant position in the same or higher pay grade than the position
  8       from which the person was laid off and for which the person meets the
  9       qualifications, and (3) shall grant a right of first refusal for any vacant
10       position. No state agency shall be required to interview more than seven
11       applicants for any one position. The right of first refusal shall allow the
12       person the right to accept the first position applied for by the person for
13       which the person meets the qualifications and for which the pay grade is
14       the same as or lower than the pay grade of the position from which the
15       person was laid off. The right of first refusal may be exercised only one
16       time and must be exercised within the 24 months following the date of
17       layoff.
18             (c) The secretary of administration shall give a global notice of layoff
19       to all state officers and employees, who are employed by an institution
20       that is scheduled for closure, abolition or cessation of operations, up to
21       180 days prior to such closure, abolition or cessation of operations. The
22       global notice of layoff shall be effective for all such state officers and
23       employees, including any state officer or employee who is transferred to
24       or employed by such institution within 180 days of the date of such clo-
25       sure, abolition or cessation of operations, for all purposes of lay off pro-
26       cedures under K.S.A. 75-2948 and amendments thereto, except each such
27       officer or employee receiving the global notice of layoff shall also be given
28       an individual notice of layoff which specifies such officer or employee's
29       individual date of layoff.
30             (d) Notice of layoff pursuant to K.S.A. 75-2948 and amendments
31       thereto, shall be given to state officers and employees whose proposed
32       layoff is caused by the transfer of the reception and diagnostic unit from
33       the Topeka correctional facility to the El Dorado correctional facility.
34             (d) (e) The secretary of administration shall adopt rules and regula-
35       tions necessary to implement the provisions of this section.
36             (e) (f) This section shall be part of and supplemental to the Kansas
37       civil service act.
38             Sec.  4. K.S.A. 75-4371 is hereby amended to read as follows: 75-
39       4371. (a) Each state officer or employee (1) who (1)(A) is employed by
40       an institution that is closed or abolished or otherwise ceases operations
41       or that is scheduled for such closure, abolition or cessation of operations
42       and has a budget reduction imposed that is associated with such closure,
43       abolition or cessation of operations, and (2) who (B) is laid off from em-

7
  1       ployment with such institution for the reason of such closure, abolition
  2       or cessation of operations or such imposition of a budget reduction, and
  3       (3) who (C) remains in such employment until the date the officer or
  4       employee is laid off; or (2)(A) is in the classified service under the Kansas
  5       civil service act and is laid off from employment at the Topeka correctional
  6       facility due to the transfer of the reception and diagnostic unit from the
  7       Topeka correctional facility to the El Dorado correctional facility, and (B)
  8       remains in such employment until the date the officer or employee is laid
  9       off, may receive compensation for 20% of all accumulated hours of sick
10       leave credited to such state officer or employee as of the date of being
11       laid off. Each state officer or employee, who is eligible for and who elects
12       to receive compensation for accumulated sick leave under this section,
13       shall file a written statement of election therefor which shall be in such
14       form as may be prescribed by the secretary of administration and which
15       shall include a specific waiver of any right to receive any payment for
16       accumulated sick leave under the provisions of K.S.A. 75-5517 and
17       amendments thereto. No state officer or employee, who receives com-
18       pensation for accumulated sick leave under this section, shall receive any
19       payment for accumulated sick leave under the provisions of K.S.A. 75-
20       5517 and amendments thereto. Payment for accumulated sick leave under
21       this section shall be made from the state leave payment reserve fund.
22             (b) For the purposes of retirement employee contributions and re-
23       tirement benefits, each payment of compensation for accumulated sick
24       leave under this section shall be subject to the applicable provisions of
25       the statutes governing the Kansas public employees retirement system,
26       K.S.A. 74-4901 et seq., and amendments thereto.
27             (c) The secretary of administration shall adopt rules and regulations
28       necessary to implement the provisions of this section.
29             Sec.  5. K.S.A. 75-4372 is hereby amended to read as follows: 75-
30       4372. (a) Each state officer or employee (1) who (1)(A) is employed by
31       an institution that is closed or abolished or otherwise ceases operations
32       or that is scheduled for such closure, abolition or cessation of operations
33       and has a budget reduction imposed that is associated with such closure,
34       abolition or cessation of operations, and (2) who (B) is laid off from em-
35       ployment with such institution for the reason of such closure, abolition
36       or cessation of operations or such imposition of a budget reduction, and
37       (3) who (C) remains in such employment until the date the officer or
38       employee is laid off; or (2)(A) who is in the classified service under the
39       Kansas civil service act and is laid off from employment at the Topeka
40       correctional facility due to the transfer of the reception and diagnostic
41       unit from the Topeka correctional facility to the El Dorado correctional
42       facility, and (B) remains in such employment until the date the officer or
43       employee is laid off, shall continue to be qualified to participate in the

8
  1       state health care benefits program as provided in this section.
  2             (b) In accordance with the following, each such state officer or em-
  3       ployee may participate in the state health care benefits program after
  4       being laid off for the following periods:
  5             (1) For the six-month period after the date of such person's layoff,
  6       during which period that portion of the cost of participation of such per-
  7       son which would have been paid by the state agency if such person was
  8       still a state officer or employee shall be paid as provided in subsection
  9       (c); and
10             (2) for the eighteen-month period after such six-month period, dur-
11       ing which period the entire cost of participation of such person shall be
12       paid by such person; and
13             (3) in the case of a blind person laid off from Kansas industries for
14       the blind, for the twenty-four-month period after the date of such person's
15       layoff from Kansas industries for the blind, during which period that
16       portion of the cost of participation of such person which would have been
17       paid by the state agency if such person was still employed at Kansas
18       industries for the blind at facilities located on the Topeka state hospital
19       property.
20             (c) There is hereby established the closure health insurance fund in
21       the state treasury which shall be administered by the secretary of admin-
22       istration. In accordance with the provisions of appropriation acts, the sec-
23       retary of administration shall cause to be deposited in the closure health
24       insurance fund an amount equal to the full cost for six months of the
25       employer contribution for full-time single member health care insurance
26       under the state health care benefits program for each such laid off state
27       officer and employee on the officer or employee's last day of service for
28       the period of time prescribed by subsection (b). Expenditures shall be
29       made from the closure health insurance fund for the purpose of paying
30       the employer's portion for full-time single member health insurance un-
31       der the state health care benefits program for each such laid off state
32       officer or employee until the expiration of six months the period of time
33       prescribed by subsection (b) or until notified by the laid off officer or
34       employee that such officer or employee is otherwise covered by health
35       care insurance. The secretary of administration shall establish a system to
36       account for the state health insurance expenditures for each such laid off
37       state officer or employee. Upon notice that the person who had been laid
38       off is otherwise covered by health care insurance, the balance attributed
39       to such person shall be paid to the person who had been laid off. After
40       such six-month period, any participation by such person in the state health
41       care benefits program shall be paid by such person.
42             (d) Except as otherwise provided by this section, the participation of
43       each such state officer or employee in the state health care benefits pro-

9
  1       gram shall be in accordance with the provisions of K.S.A. 75-6501 through
  2       75-6513 and amendments thereto and rules and regulations and policies
  3       adopted by the Kansas state employees health care commission. Each
  4       such state officer or employee may obtain family coverage under the state
  5       health care benefits program administered by the Kansas state employees
  6       health care commission generally in the same manner as other state of-
  7       ficers and employees and shall pay the entire cost of such family coverage.
  8             Sec.  6. K.S.A. 75-4373 is hereby amended to read as follows: 75-
  9       4373. (a) Each state officer or employee (1) who (1)(A) is employed by
10       an institution that is closed or abolished or otherwise ceases operations
11       or that is scheduled for such closure, abolition or cessation of operations
12       and has a budget reduction imposed that is associated with such closure,
13       abolition or cessation of operations, and (2) who (B) is laid off from em-
14       ployment with such institution for the reason of such closure, abolition
15       or cessation of operations or such imposition of a budget reduction, and
16       (3) who (C) remains in such employment until the date the officer or
17       employee is laid off, shall be eligible for the extended death benefit plan
18       providing term life insurance under this section; or (2)(A) is in the clas-
19       sified service under the Kansas civil service act and who is laid off from
20       employment at the Topeka correctional facility due to the transfer of the
21       reception and diagnostic unit from the Topeka correctional facility to the
22       El Dorado correctional facility, and (B) remains in such employment until
23       the date the officer or employee is laid off.
24             (b) The extended death benefit plan providing term life insurance
25       under this section shall provide a death benefit equal to 150% of the
26       annual rate of compensation of the covered state officer or employee, as
27       of the date the covered state officer or employee is laid off, for each state
28       officer or employee described in subsection (a). The extended death ben-
29       efit plan providing term life insurance under this section shall provide
30       death benefit coverage for a period of 24 months after the date the cov-
31       ered state officer or employee is laid off.
32             (c) The secretary of administration shall administer the provisions of
33       this section. The secretary of administration shall issue a request for pro-
34       posals from qualified vendors for term life insurance under this section
35       and is hereby authorized to enter into contracts for such term life insur-
36       ance pursuant to competitive bids. Contracts entered into for such insur-
37       ance shall not be subject to the provisions of K.S.A. 75-4101 and amend-
38       ments thereto.
39             (d) There is hereby created in the state treasury the closure term life
40       insurance fund which shall be administered by the secretary of adminis-
41       tration. All expenditures of moneys credited to the closure term life in-
42       surance fund shall be for the provision of term life insurance under this
43       section in accordance with appropriation acts upon warrants of the direc-

10
  1       tor of accounts and reports issued pursuant to vouchers approved by the
  2       secretary of administration or the secretary's designee.
  3             Sec.  7. K.S.A. 75-4374 is hereby amended to read as follows: 75-
  4       4374. (a) The head of any state agency, as defined by K.S.A. 75-3701, and
  5       amendments thereto, who hires any state officer or employee who is laid
  6       off or transferred in lieu of layoff between state agencies, may agree to
  7       reimburse such officer or employee's in-state moving expenses in an ag-
  8       gregate amount of not more than $2,000, as verified by receipts. No such
  9       moving expenses shall be paid when such transfer results in the new
10       official duty station being less than 25 miles from the old station.
11             (b) Moving expenses may include, but not be limited to, the cost of
12       packing and transporting household goods and personal effects, subsis-
13       tence expenses while en route from the old residence to the new resi-
14       dence, subsistence expenses while occupying temporary quarters in the
15       new location and the expenses of a premove trip to look for a new
16       residence.
17             (c) Any state agency, as defined by K.S.A. 75-3701 and amendments
18       thereto, which hires any state officer or employee, who is a blind person
19       employed at Kansas industries for the blind at facilities on the Topeka
20       state hospital property and who is laid off or transferred between state
21       agencies, in lieu of being laid off, shall purchase or otherwise provide all
22       adaptive equipment and other accommodations required by such state
23       officer or employer for such state officer or employee's position at such
24       state agency.
25             (d) As used in this section, ``state officer or employee'' means a state
26       officer or employee (1) who (1)(A) is employed by an institution that is
27       closed or abolished or otherwise ceases operations or that is scheduled
28       for such closure, abolition or cessation of operations, and (2) who (B) is
29       laid off from employment with such institution for the reason of such
30       closure, abolition or cessation of operations, and (3) who (C) remains in
31       such employment with such institution until the date the officer or em-
32       ployee is laid off; or (2)(A) is in the classified service under the Kansas
33       civil service act and is laid off from employment at the Topeka correctional
34       facility due to the transfer of the reception and diagnostic unit from the
35       Topeka correctional facility to the El Dorado correctional facility, and (B)
36       remains in such employment until the date the officer or employee is laid
37       off.
38             Sec.  8. K.S.A. 75-4375 is hereby amended to read as follows: 75-
39       4375. (a) Each state officer or employee (1) who is employed by an in-
40       stitution that is closed or abolished or otherwise ceases operations or that
41       is scheduled for such closure, abolition or cessation of operations and has
42       a budget reduction imposed that is associated with such closure, abolition
43       or cessation of operations, and (2) who is a direct care employee as de-

11
  1       fined by this section or who is a blind person employed by Kansas in-
  2       dustries for the blind at the facilities located on the Topeka state hospital
  3       property, and (3) who is laid off from employment with such institution
  4       for the reason of such closure, abolition, or cessation of operations or
  5       such imposition of a budget reduction, and (4) who remains in such em-
  6       ployment until the date the employee is laid off, shall receive compen-
  7       sation from the department of social and rehabilitation services for the
  8       following:
  9             (A) Forty hours of pay at the state officer or employee's regular
10       hourly rate of pay on the date the employee is laid off if such employee
11       has completed one full year of service but less than two full years of
12       service on the layoff date;
13             (B) eighty hours of pay at the state officer or employee's regular
14       hourly rate of pay on the date the employee is laid off if such employee
15       has completed two full years of service but less than three full years of
16       service on the layoff date;
17             (C) one hundred twenty hours of pay at the state officer or em-
18       ployee's regular hourly rate of pay on the date the employee is laid off if
19       such employee has completed three full years of service but less than four
20       full years of service on the layoff date; or
21             (D) one hundred sixty hours of pay at the state officer or employee's
22       regular hourly rate of pay on the date the employee is laid off if the
23       employee has completed four full years of service or more on the layoff
24       date.
25             (b) As used in this section, ``direct care employee'' means state offi-
26       cers or employees in the classified service under the Kansas civil service
27       act who: (1) Are exempt from the provisions of K.S.A. 75-6801 and
28       amendments thereto as prescribed in policies and procedures prescribed
29       by the secretary of administration, including but not limited to state of-
30       ficers and employees whose positions are in the following job class series:
31       (A) Activity therapist, (B) activity therapy technician, (C) licensed mental
32       health technician, (D) licensed mental health technician specialist, (E)
33       licensed practical nurse, (F) licensed practical nurse, senior, (G) mental
34       health aide, (H) radiologic technologist, (I) registered nurse, (J) activity
35       specialist, (K) mental retardation specialist, (L) mental retardation tech-
36       nician, and (M) mental retardation trainee; or
37             (2) are in positions that are assigned to job classes or job class series
38       that are designated as direct care employee job classes or job class series
39       by the secretary of social and rehabilitation services for purposes of this
40       section, except that no such designation shall be effective until the sec-
41       retary of social and rehabilitation services has presented such designation
42       to the SRS transition oversight committee created by K.S.A. 1997 1999
43       Supp. 46-2701 and amendments thereto.

12
  1             Sec.  9. K.S.A. 75-4376 is hereby amended to read as follows: 75-
  2       4376. As used in K.S.A. 75-4370 through 75-4376 and amendments
  3       thereto, except as otherwise specifically provided in such statutes:
  4             (a) ``Institution'' means Topeka state hospital or, Winfield state hos-
  5       pital and training center and Kansas industries for the blind of the de-
  6       partment of social and rehabilitation services; and
  7             (b) ``laid off'' means, (1) in the case of a state officer or employee in
  8       the classified service under the Kansas civil service act, being laid off
  9       under K.S.A. 75-2948 and amendments thereto and,; (2) in the case of a
10       state officer or employee in the unclassified service under the Kansas civil
11       service act, being terminated from employment with the state agency by
12       the appointing authority, except that ``laid off'' shall not include any sep-
13       aration from employment pursuant to a budget reduction or expenditure
14       authority reduction and a reduction of F.T.E. positions under K.S.A. 75-
15       6801 and amendments thereto; and (3) in the case of blind persons em-
16       ployed by Kansas industries for the blind, being terminated or otherwise
17       separated from employment at Kansas industries for the blind at the fa-
18       cilities located on the Topeka state hospital property because Kansas in-
19       dustries for the blind is closed, abolished or otherwise ceases operations
20       as a state program at such location; and
21             (c) ``Topeka state hospital property'' has the meaning ascribed thereto
22       by K.S.A. 1999 Supp. 75-37,123 and amendments thereto.
23             Sec.  10. K.S.A. 1999 Supp. 75-6801 is hereby amended to read as
24       follows: 75-6801. (a) As used in this section:
25             (1) ``Executive secretary'' means the executive secretary of the Kansas
26       public employees retirement system.
27             (2) ``F.T.E. positions'' means the number of full time and regular part
28       time positions equated to full time, excluding seasonal and temporary
29       positions, paid from appropriations.
30             (3) ``Head of the governmental branch'' means the governor, in the
31       case of the executive branch; and the legislative coordinating council, in
32       the case of the legislative branch.
33             (4) ``Retiree'' means any person electing to retire pursuant to K.S.A.
34       74-4914, and amendments thereto, except that ``retiree'' shall not include
35       (A) any person who is retiring from a position which provides direct care
36       for patients at Topeka state hospital, Osawatomie state hospital, Rainbow
37       mental health facility or Larned state hospital, Kansas neurological insti-
38       tute, Parsons state hospital and training center, Winfield state hospital
39       and training center, university of Kansas medical center, Atchison juvenile
40       correctional facility, Beloit juvenile correctional facility, Larned juvenile
41       correctional facility, Topeka juvenile correctional facility, Kansas soldiers'
42       home and Kansas veterans' home, or (B) any person who is retiring from
43       the Topeka correctional facility due to the transfer of the reception and

13
  1       diagnostic unit from the Topeka correctional facility to the El Dorado
  2       correctional facility.
  3             (b) The executive secretary shall provide the head of the govern-
  4       mental branch notice of the name, employing state agency and retirement
  5       date of each retiree retiring after the effective date of this act and such
  6       other information that may be prescribed by the head of the govern-
  7       mental branch.
  8             (c)  (1) Upon receipt of each notice pursuant to subsection (b) re-
  9       garding a retiree employed by a state agency in the executive branch, the
10       governor shall direct the secretary of administration to reduce by one the
11       number of F.T.E. positions authorized for the state agency that employed
12       the retiree and reduce the expenditure authority of such state agency in
13       an amount attributable to the amount of unused salary and employer-
14       paid benefits attributable to the retiree's job position.
15             (2) Upon receipt of each notice pursuant to subsection (c) regarding
16       a retiree employed by a state agency in the legislative branch, the legis-
17       lative coordinating council shall reduce by one the number of F.T.E.
18       positions for the state agency that employed the retiree and reduce the
19       expenditure authority of such state agency in an amount attributable to
20       the retiree's job position.
21             (d)  (1) For reductions made in the executive branch of government,
22       the governor is authorized to restore or allocate, to any state agency or
23       agencies within the executive branch, no more than 3/4 of the F.T.E.
24       positions and expenditure authority reductions made pursuant to subsec-
25       tion (c)(1), except that, upon request of the governor, the reduced num-
26       ber of authorized F.T.E. positions and the reduced amount of expendi-
27       ture authority established under subsection (c)(1) for a state agency in
28       the executive branch of government may be increased upon approval by
29       the state finance council acting on this matter which is hereby character-
30       ized as a matter of legislative delegation and subject to the guidelines
31       prescribed in subsection (c) of K.S.A. 75-3711c and amendments thereto.
32             (2) For reductions made in the legislative branch of government, the
33       legislative coordinating council is authorized to restore or allocate, to any
34       state agency or agencies within the legislative branch, no more than 3/4 of
35       the F.T.E. positions and expenditure authority reductions made pursuant
36       to subsection (c)(2), except that, upon request of the agency head, the
37       reduced number of authorized F.T.E. positions and the reduced amount
38       of expenditure authority established under subsection (c) for a state
39       agency in the legislative branch of government may be increased upon
40       approval by the legislative coordinating council.
41             (e) The secretary of administration is authorized to prescribe such
42       policies and procedures as may be deemed necessary to carry out the
43       provisions of this section. 

14
  1       Sec.  11. K.S.A. 75-4370, 75-4371, 75-4372, 75-4373, 75-4374, 75-
  2       4375 and 75-4376 and K.S.A. 1999 Supp. 46-233 and 75-6801 are hereby
  3       repealed.
  4        Sec.  12. This act shall take effect and be in force from and after its
  5       publication in the Kansas register.