An Act concerning community colleges; relating to student tuition rates; amending K.S.A. 71-406, 71-603, 71-611, 71-613a and 71-619 and K.S.A. 1995 Supp. 71-301, 71-602, 71- 607 and 71-609 and repealing the existing sections; also repealing K.S.A. 1995 Supp. 71- 302 and 71-618.

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

Section 1. K.S.A. 1995 Supp. 71-301 is hereby amended to read as follows: 71-301. (a) (1) Except as otherwise provided in this subsection, The board of trustees shall charge to and collect from each in-state stu- dent tuition at rates per credit hour enrolled which shall be established by the board of trustees.

(2) Subject to the provisions of K.S.A. 71-302, and amendments thereto, the board of trustees shall charge to and collect from each out- of-state and foreign student tuition at rates per credit hour enrolled which shall be established at an amount not less than three times the amount per credit hour established by the board of trustees under provision (1).

(3) The board of trustees may charge to and collect from each student who is eligible for admission to a community college at in-state tuition rates but who resides within a federal military reservation tuition at rates per credit hour enrolled which, if established, shall be established at an amount not less than $36 per credit hour.

(4) The board of trustees may charge to and collect from each student who is eligible for admission to a community college at in-state tuition rates, but who is taught any subject or course at Fort Hays state university or at Wichita state university under an agreement entered into by the community college and either such university in accordance with the pro- visions of subsection (c) of K.S.A. 71-609, and amendments thereto, tu- ition at rates per credit hour enrolled in each such subject or course which, if established, shall be established at an amount not less than $36 per each such credit hour. This provision shall expire on June 30, 1996, unless amended by act of the legislature prior to such date.

(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. 75-6201 et 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. 2. K.S.A. 71-406 is hereby amended to read as follows: 71-406. Persons enrolling in a community college who, if adults, have not been, or if minors, whose parents have not been residents of the state of Kansas for at least six (6) months prior to enrollment for any term or session are nonresidents for student tuition and out-of-state and foreign student tu- ition purposes the purpose of determining state aid entitlements. Subject to the foregoing for the purpose of determining the state or country of residence of persons enrolling as a student in a community college, res- idence of minors shall be determined as provided in K.S.A. 72-1046, and acts amendatory thereof amendments thereto, and of adults as provided in subpart twenty-third of K.S.A. 77-201, and acts amendatory thereof amendments thereto. The state board of education may adopt rules and regulations governing the determination of residence of students for stu- dent tuition and out-of-state and foreign student tuition purposes.

Sec. 3. K.S.A. 1995 Supp. 71-602 is hereby amended to read as fol- lows: 71-602. (a) Each community college is entitled to receive credit hour state aid. The basis for payments of credit hour state aid for com- munity colleges for each credit hour of each duly enrolled student shall be: (1) For each credit hour in any subject or course which is not part of a vocational education program approved by the state board under the provisions of article 44 of chapter 72 of Kansas Statutes Annotated, an amount which shall be provided for by the legislature in acts making appropriations for the credit hour state aid entitlement of community colleges; and (2) for each credit hour in any subject or course which is part of a vocational education program approved by the state board under the provisions of article 44 of chapter 72 of Kansas Statutes Annotated, an amount which shall be determined by the state board by multiplying by 11/2 the amount provided for by the legislature under (1), except that the amount provided for by the legislature under (1) for each credit hour of each student shall be multiplied by two if the credit hour is in any subject or course which is part of an approved vocational education pro- gram which is offered in a community college which is also officially designated as an area vocational school by the state board or if the credit hour is in any subject or course which is part of an approved vocational education program transferred to a community college in accordance with an agreement made and entered into under authority of K.S.A. 71-1507, and amendments thereto.

(b) Credit hour state aid payments shall be made only for credit hours of duly enrolled students if such students, as determined by the state board, are bona fide residents of the state of Kansas, or are considered bona fide residents of the state of Kansas under the provisions of K.S.A. 71-618, and amendments thereto.

(c) The determination of credit hours of duly enrolled students shall be made at times prescribed by the state board of education.

Sec. 4. K.S.A. 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 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 or who are considered bona fide residents of the state. Each November 1 and March 1, certification for payment shall set forth separately the credit hour enrollment for preced- ing sessions and for the current fall session. The state board may require the community college to furnish any additional information deemed nec- essary 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 with respect to each community college district in the county, the current assessed valuation of taxable tangible 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. 5. K.S.A. 1995 Supp. 71-607 is hereby amended to read as fol- lows: 71-607. (a) Each community college is entitled to receive out-district state aid payments in amounts determined as provided in this section. From reports and information provided by each community college, and from such additional audits and investigations as are conducted by the state department of education, the state board shall determine the amount of out-district tuition each community college is entitled to bill to counties each year, and the entitlement to out-district state aid of each community college shall be an amount equal thereto plus (1) an amount equal to the amount of out-district tuition disallowed under the provisions of K.S.A. 71-304, and amendments thereto, and an amount equal to the amount of out-district tuition disallowed under the provisions of subsec- tion (c) of K.S.A. 71-609, and amendments thereto, and (2) an amount equal to the amount of out-district tuition disallowed under the provisions of subsection (c) of K.S.A. 71-609, and amendments thereto, and (3) an amount equal to the number of duly enrolled out-of-state and foreign students considered bona fide residents of the state under the provisions of K.S.A. 71-618, and amendments thereto, times the amount specified in subsection (c) of K.S.A. 71-301, and amendments thereto, for each credit hour of each such duly enrolled student if such student, as deter- mined by the state board, qualifies as an out-district student for the pur- pose of determination of the amount of out-district state aid entitlement.

(b) (1) Out-district state aid payments shall be made only for credit hours of students specified in provision (3) of subsection (a) if such stu- dents, 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 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.

Sec. 6. K.S.A. 1995 Supp. 71-609 is hereby amended to read as fol- lows: 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 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 sub- ject or course is specifically authorized by the state board of education.

(b) (1) No out-district tuition charges and no out-district state aid entitlement shall be based upon credit hours in any subject or course which is taught in a county in which the main campus of a state educa- tional institution is located, unless the teaching of such subject or course is specifically authorized by the chief executive officer of the state edu- cational 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 Fort Hays state university or at Wichita state university under an agree- ment for the teaching of such subject or course entered into by a com- munity college and either such university. An agreement entered 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 authori- zation under subsection (b) shall be required.

(2) The chief executive officers of the universities and of the com- munity colleges which enter into agreements or propose to enter into such agreements in accordance with the provisions of this subsection shall collect data and information regarding the effectuation of such agree- ments, the subjects and courses taught under such agreements, the fiscal impact, including the realization of any savings, of the teaching of subjects and courses under such agreements on students, the universities and col- leges and the state, and the benefits accruing to students and the edu- cational systems of the universities and colleges and the state as a result of such agreements. Such information and data shall be reported to the legislature on or before January 15, 1996. The chief executive officers of the universities and community colleges may designate persons or com- mittees to act on behalf of such officers in performing the duties required by this provision.

(3) The provisions of this subsection shall expire on June 30, 1996, unless amended by act of the legislature prior to such date.

(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 Fort Hays state university or at Wichita state university under an agreement for the teaching of such subject or course entered into by a community college and either such university. An agreement entered 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 authori- zation 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. 7. K.S.A. 71-611 is hereby amended to read as follows: 71-611. (a) ``Operating expenses'' means the total expenditures and lawful trans- fers from the general fund of a community college during a school year for all purposes.

(b) ``Legally adopted budget of operating expenses'' means the amount legally authorized for such expenses in the budget 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, property taxes for general purposes, out-district tuition, student tuition, tuition of out-of-state and foreign students, and other moneys provided for by law are credited.

Sec. 8. K.S.A. 71-613a is hereby amended to read as follows: 71- 613a. All amounts of credit hour state aid, out-district state aid, general state aid, out-district tuition, and student tuition, and tuition of out-of- state and foreign students received by a community college for any pro- gram authorized by article 44 of chapter 72 of Kansas Statutes Annotated may be deposited in the vocational education fund of the community college.

Sec. 9. K.S.A. 71-619 is hereby amended to read as follows: 71-619. (a) Each community college is entitled to receive general state aid pay- ments in amounts determined by the state board as provided in this sec- tion.

(b) In each fiscal year, the state board shall:

(1) Determine full-time equivalent enrollment of each community college and total full-time equivalent enrollment of all community col- leges.

(2) Determine the assessed valuation of each community college.

(3) Compute the assessed valuation per student of each community college by dividing its assessed valuation by its full-time equivalent en- rollment. The quotient is the assessed valuation per student of the com- munity college.

(4) Determine the median assessed valuation per student of all com- munity colleges by ranking the community colleges from high to low on the basis of assessed valuation per student of each community college and identify the community college which is located at the median. The me- dian assessed valuation per student of all community colleges is the as- sessed valuation per student of the community college identified as being located at the median.

(5) Compute the wealth factor of each community college by dividing the median assessed valuation per student of all community colleges by the assessed valuation per student of the community college. The quotient is the wealth factor of the community college.

(6) Determine on the basis of total full-time equivalent enrollment of all community colleges a per student guarantee by computing the amount thereof which is required to distribute to the community colleges the total amount of the appropriation from the state general fund for general state aid for the fiscal year.

(7) Multiply the per student guarantee determined in provision (6) by the full-time equivalent enrollment of the community college.

(8) Multiply the product obtained in provision (7) by the wealth factor of the community college. The product is the amount of general state aid to which the community college is entitled.

(c) As used in this section:

(1) `` Assessed valuation of a community college'' means the assessed valuation of the taxable tangible property within the community college district.

(2) ``Taxable tangible property'' means all real and tangible personal property which is subject to general ad valorem taxation.

(3) ``Full-time equivalent enrollment'' means the quotient obtained by dividing by 15 the total credit hour enrollment of students of a com- munity college who are or are considered bona fide residents of the state of Kansas on September 15 plus the total credit hour enrollment of such students of the community college for courses taught in the summer term and for courses approved to be conducted as of September 15, the be- ginning dates of which courses are after September 15 but prior to De- cember 1.

Sec. 10. K.S.A. 71-406, 71-603, 71-611, 71-613a and 71-619 and K.S.A. 1995 Supp. 71-301, 71-302, 71-602, 71-607, 71-609 and 71-618 are hereby repealed.

Sec. 11. This act shall take effect and be in force from and after its publication in the statute book.

Approved April 10, 1996.