Session of 2000
SENATE BILL No. 507 By Committee on Ways and Means 1-27

9 AN ACT concerning Kansas industries for the blind; transfer of assets;
10 establishing the KIB contingency fund.
11
12 Be it enacted by the Legislature of the State of Kansas:
13 Section 1. (a) If Kansas industries for the blind is sold, closed, abol-
14 ished or otherwise ceases operations as a state program, the secretary of
15 social and rehabilitation services shall sell and dispose of the assets of
16 Kansas industries for the blind in a manner determined by the secretary
17 to maximize the amount of proceeds derived from such sale.
18 (b) Each sale or other disposition of the assets of Kansas industries
19 for the blind shall be exempt from the provisions of K.S.A. 75-3739, and
20 amendments thereto, except that bidding procedures which are not in
21 conflict with K.S.A. 75-3739, and amendments thereto, may be used be-
22 fore awarding any contract under this act.
23 (c) The provisions of K.S.A. 75-6601 through 75-6608 and 75-7101
24 through 75-7107, and amendments thereto, shall not apply to actions
25 under this act.
26 Sec. 2. (a) If Kansas industries for the blind is sold, closed, abolished
27 or otherwise ceases operation as a state program, there shall be created
28 in the state treasury the KIB contingency fund which shall be adminis-
29 tered by the director of the Kansas division of services for the blind.
30 Revenue from the following sources shall be deposited in the state treas-
31 ury and credited to the KIB contingency fund:
32 (1) Proceeds from the sale of the real property currently occupied by
33 Kansas industries for the blind at the time of sale, closure, abolishment
34 or otherwise cessation of operations as a state program;
35 (2) all moneys received for accounts receivable;
36 (3) proceeds from the sale of the inventory of finished goods and
37 works in progress;
38 (4) proceeds from the sale of the inventory of raw materials;
39 (5) proceeds from the sale of the capital assets of the Kansas indus-
40 tries for the blind; and
41 (6) the net amount of moneys in the social welfare fund and any other
42 special revenue fund that constitute fees and other revenues attributable
43 to the Kansas industries for the blind program of the department of social

2
1 and rehabilitation services.
2 (b) Moneys deposited in the KIB contingency fund shall be expended
3 only for the purposes prescribed in section 3, and amendments thereto.
4 (c) On or before the 10th day of each month, the director of accounts
5 and reports shall transfer from the state general fund to the KIB contin-
6 gency fund interest earnings based on:
7 (1) The average daily balance of moneys in the KIB contingency fund
8 for the preceding month; and
9 (2) the net earnings of the pooled money investment portfolio for the
10 preceding month.
11 (d) All expenditures from the KIB contingency fund shall be in ac-
12 cordance with appropriation acts upon warrants of the director of ac-
13 counts and reports issued pursuant to vouchers approved by the director
14 of the Kansas division of services for the blind for the purposes set forth
15 in section 3, and amendments thereto.
16 Sec. 3. (a) Within the limits of appropriations therefor, the director
17 of the Kansas division of services for the blind shall establish and admin-
18 ister a grant program and make awards from the KIB contingency fund
19 for the purposes of establishing or reopening a facility to provide indus-
20 trial employment to the blind, within the city limits of the city of Topeka.
21 Only organizations which are charitable not-for-profit organizations which
22 are exempt from federal income taxation pursuant to section 501 (c)(3)
23 of the federal internal revenue code of 1986 or an agency of state or local
24 government, or any instrumentality thereof, shall be eligible to receive a
25 grant award under this section.
26 (b) Except as provided in subsection (c), a grantee shall not be eligible
27 for an award unless such grantee agrees to comply with all of the following
28 provisions:
29 (1) Not less than 75% of all persons employed to perform direct labor
30 at the new facility providing industrial employment for the blind shall
31 meet the definition of blindness prescribed for use in determining eligi-
32 bility under the federal social security administration;
33 (2) each grantee shall be affiliated, or shall seek affiliation with, na-
34 tional industries for the blind;
35 (3) each grantee shall be authorized or shall be seeking authorization
36 to sell products under provisions of K.S.A. 75-3317 et seq., and amend-
37 ments thereto; and
38 (4) each grantee shall agree to provide comparable wages and ben-
39 efits as paid to all blind persons who were employed by Kansas industries
40 for the blind at the time Kansas industries for the blind was sold, closed,
41 abolished or otherwise ceased operating as a state program, to any blind
42 person accepting employment at the new facility providing industrial em-
43 ployment to the blind if such blind person was employed by Kansas in-

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1 dustries for the blind on or after the date which is two years before the
2 date of such sale, closure, abolishment or other cessation of operations
3 of Kansas industries for the blind as a state program.
4 (c) Each grant applicant, which is a charitable not-for-profit organi-
5 zation which is exempt from federal income taxation pursuant to section
6 501 (c)(3) of the federal internal revenue code of 1986 and which has a
7 majority of members of its board of directors who are former employees
8 of Kansas industries for the blind, shall be given preference in the award
9 of grants. If no grant applicant is qualified for a preference under this
10 subsection, or if no applicant is able to comply with the provisions of
11 subsection (b), then grants shall be awarded from the KIB contingency
12 fund on a competitive basis. The director of Kansas division of services
13 for the blind shall adopt standards to be used to review grant applicants
14 when grants are awarded on a competitive basis to assure that the appli-
15 cant with the best chance of operational success is chosen pursuant to
16 this subsection.
17 Sec. 4. This act shall take effect and be in force from and after its
18 publication in the statute book.