An Act concerning the closure of certain state institutions; relating to officers and employ- ees laid off therefrom; prescribing certain benefits and procedures therefor; amending K.S.A. 1995 Supp. 46-233 and 75-5542 and repealing the existing sections.

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

New Section 1. (a) In establishing certified pools of eligible candi- dates under the Kansas civil service act, a preference shall be given to each state officer or employee (1) who is in the classified service under the Kansas Civil service act and is employed by an institution that is closed or abolished or otherwise ceases operations or that is scheduled for such closure, abolition or cessation of operations and has a budget reduction imposed that is associated with such closure, abolition or cessation of operations, and (2) who is laid off from employment with such institution for the reason of such closure, abolition or cessation of operations or such imposition of a budget reduction, and (3) who remains in such employ- ment until the date the officer or employee is laid off.

(b) To qualify for the preference established by this section, a person described in subsection (a) also shall meet the requirements for the vacant position. In addition to other applicable provisions of the Kansas civil service act and rules and regulations and policies adopted thereunder, the preference established by this section shall place the person into the reemployment pool, shall provide an opportunity for an interview for any vacant position in the same or higher pay grade than the position from which the person was laid off and for which the person meets the quali- fications, and shall grant a right of first refusal for any vacant position. No state agency shall be required to interview more than seven applicants for any one position. The right of first refusal shall allow the person the right to accept the first position applied for by the person for which the person meets the qualifications and for which the pay grade is the same as or lower than the pay grade of the position from which the person was laid off. The right of first refusal may be exercised only one time and must be exercised within the 24 months following the date of layoff.

(c) The secretary of administration shall give a global notice of layoff to all state officers and employees, who are employed by an institution that is scheduled for closure, abolition or cessation of operations, up to 180 days prior to such closure, abolition or cessation of operations. The global notice of layoff shall be effective for all such state officers and employees, including any state officer or employee who is transferred to or employed by such institution within 180 days of the date of such clo- sure, abolition or cessation of operations, for all purposes of lay off pro- cedures under K.S.A. 75-2948 and amendments thereto, except each such officer or employee receiving the global notice of layoff shall also be given an individual notice of layoff which specifies such officer or employee's individual date of layoff.

(d) The secretary of administration shall adopt rules and regulations necessary to implement the provisions of this section.

(e) This section shall be part of and supplemental to the Kansas civil service act.

New Sec. 2. (a) Each state officer or employee (1) who is employed by an institution that is closed or abolished or otherwise ceases operations or that is scheduled for such closure, abolition or cessation of operations and has a budget reduction imposed that is associated with such closure, abolition or cessation of operations, and (2) who is laid off from employ- ment with such institution for the reason of such closure, abolition or cessation of operations or such imposition of a budget reduction, and (3) who remains in such employment until the date the officer or employee is laid off, may receive compensation for 20% of all accumulated hours of sick leave credited to such state officer or employee as of the date of being laid off. Each state officer or employee, who is eligible for and who elects to receive compensation for accumulated sick leave under this sec- tion, shall file a written statement of election therefor which shall be in such form as may be prescribed by the secretary of administration and which shall include a specific waiver of any right to receive any payment for accumulated sick leave under the provisions of K.S.A. 75-5517 and amendments thereto. No state officer or employee, who receives com- pensation for accumulated sick leave under this section, shall receive any payment for accumulated sick leave under the provisions of K.S.A. 75- 5517 and amendments thereto. Payment for accumulated sick leave under this section shall be made from the state leave payment reserve fund.

(b) For the purposes of retirement employee contributions and re- tirement benefits, each payment of compensation for accumulated sick leave under this section shall be subject to the applicable provisions of the statutes governing the Kansas public employees retirement system, K.S.A. 74-4901 et seq., and amendments thereto.

(c) The secretary of administration shall adopt rules and regulations necessary to implement the provisions of this section.

New Sec. 3. (a) Each state officer or employee (1) who is employed by an institution that is closed or abolished or otherwise ceases operations or that is scheduled for such closure, abolition or cessation of operations and has a budget reduction imposed that is associated with such closure, abolition or cessation of operations, and (2) who is laid off from employ- ment with such institution for the reason of such closure, abolition or cessation of operations or such imposition of a budget reduction, and (3) who remains in such employment until the date the officer or employee is laid off, shall continue to be qualified to participate in the state health care benefits program as provided in this section.

(b) In accordance with the following, each such state officer or em- ployee may participate in the state health care benefits program after being laid off for the following periods:

(1) For the six-month period after the date of such person's layoff, during which period that portion of the cost of participation of such per- son which would have been paid by the state agency if such person was still a state officer or employee shall be paid as provided in subsection (c); and

(2) for the eighteen-month period after such six-month period, dur- ing which period the entire cost of participation of such person shall be paid by such person.

(c) There is hereby established the closure health insurance fund in the state treasury which shall be administered by the secretary of admin- istration. In accordance with the provisions of appropriation acts, the sec- retary of administration shall cause to be deposited in the closure health insurance fund an amount equal to the full cost for six months of the employer contribution for full-time single member health care insurance under the state health care benefits program for each such laid off state officer and employee on the officer or employee's last day of service. Expenditures shall be made from the closure health insurance fund for the purpose of paying the employer's portion for full-time single member health insurance under the state health care benefits program for each such laid off state officer or employee until the expiration of six months or until notified by the laid off officer or employee that such officer or employee is otherwise covered by health care insurance. The secretary of administration shall establish a system to account for the state health insurance expenditures for each such laid off state officer or employee. Upon notice that the person who had been laid off is otherwise covered by health care insurance, the balance attributed to such person shall be paid to the person who had been laid off. After such six-month period, any participation by such person in the state health care benefits program shall be paid by such person.

(d) Except as otherwise provided by this section, the participation of each such state officer or employee in the state health care benefits pro- gram shall be in accordance with the provisions of K.S.A. 75-6501 through 75-6513 and amendments thereto and rules and regulations and policies adopted by the Kansas state employees health care commission. Each such state officer or employee may obtain family coverage under the state health care benefits program administered by the Kansas state employees health care commission generally in the same manner as other state of- ficers and employees and shall pay the entire cost of such family coverage.

New Sec. 4. (a) Each state officer or employee (1) who is employed by an institution that is closed or abolished or otherwise ceases operations or that is scheduled for such closure, abolition or cessation of operations and has a budget reduction imposed that is associated with such closure, abolition or cessation of operations, and (2) who is laid off from employ- ment with such institution for the reason of such closure, abolition or cessation of operations or such imposition of a budget reduction, and (3) who remains in such employment until the date the officer or employee is laid off, shall be eligible for the extended death benefit plan providing term life insurance under this section.

(b) The extended death benefit plan providing term life insurance under this section shall provide a death benefit equal to 150% of the annual rate of compensation of the covered state officer or employee, as of the date the covered state officer or employee is laid off, for each state officer or employee described in subsection (a). The extended death ben- efit plan providing term life insurance under this section shall provide death benefit coverage for a period of 24 months after the date the cov- ered state officer or employee is laid off.

(c) The secretary of administration shall administer the provisions of this section. The secretary of administration shall issue a request for pro- posals from qualified vendors for term life insurance under this section and is hereby authorized to enter into contracts for such term life insur- ance pursuant to competitive bids. Contracts entered into for such insur- ance shall not be subject to the provisions of K.S.A. 75-4101 and amend- ments thereto.

(d) There is hereby created in the state treasury the closure term life insurance fund which shall be administered by the secretary of adminis- tration. All expenditures of moneys credited to the closure term life in- surance fund shall be for the provision of term life insurance under this section in accordance with appropriation acts upon warrants of the direc- tor of accounts and reports issued pursuant to vouchers approved by the secretary of administration or the secretary's designee.

New Sec. 5. (a) The head of any state agency, as defined by K.S.A. 75-3701, and amendments thereto, who hires any state officer or em- ployee who is laid off or transferred in lieu of layoff between state agen- cies, may agree to reimburse such officer or employee's in-state moving expenses in an aggregate amount of not more than $2,000, as verified by receipts. No such moving expenses shall be paid when such transfer re- sults in the new official duty station being less than 25 miles from the old station.

(b) Moving expenses may include, but not be limited to, the cost of packing and transporting household goods and personal effects, subsis- tence expenses while en route from the old residence to the new resi- dence, subsistence expenses while occupying temporary quarters in the new location and the expenses of a premove trip to look for a new resi- dence.

(c) As used in this section, ``state officer or employee'' means a state officer or employee (1) who is employed by an institution that is closed or abolished or otherwise ceases operations or that is scheduled for such closure, abolition or cessation of operations, and (2) who is laid off from employment with such institution for the reason of such closure, abolition or cessation of operations, and (3) who remains in such employment with such institution until the date the officer or employee is laid off.

New Sec. 6. (a) Each state officer or employee (1) who is employed by an institution that is closed or abolished or otherwise ceases operations or that is scheduled for such closure, abolition or cessation of operations and has a budget reduction imposed that is associated with such closure, abolition or cessation of operations, and (2) who is a direct care employee as defined by this section, and (3) who is laid off from employment with such institution for the reason of such closure, abolition, or cessation of operations or such imposition of a budget reduction, and (4) who remains in such employment until the date the employee is laid off, shall receive compensation from the department of social and rehabilitation services for the following:

(A) Forty hours of pay at the state officer or employee's regular hourly rate of pay on the date the employee is laid off if such employee has completed one full year of service but less than two full years of service on the layoff date;

(B) eighty hours of pay at the state officer or employee's regular hourly rate of pay on the date the employee is laid off if such employee has completed two full years of service but less than three full years of service on the layoff date;

(C) one hundred twenty hours of pay at the state officer or employ- ee's regular hourly rate of pay on the date the employee is laid off if such employee has completed three full years of service but less than four full years of service on the layoff date; or

(D) one hundred sixty hours of pay at the state officer or employee's regular hourly rate of pay on the date the employee is laid off if the employee has completed four full years of service or more on the layoff date.

(b) As used in this section, ``direct care employee'' means state offi- cers or employees in the classified service under the Kansas civil service act who: (1) Are exempt from the provisions of K.S.A. 1995 Supp. 75- 6801 and amendments thereto as prescribed in policies and procedures prescribed by the secretary of administration, including but not limited to state officers and employees whose positions are in the following job class series: (A) Activity therapist, (B) activity therapy technician, (C) li- censed mental health technician, (D) licensed mental health technician specialist, (E) licensed practical nurse, (F) licensed practical nurse, senior, (G) mental health aide, (H) radiologic technologist, (I) registered nurse, (J) activity specialist, (K) mental retardation specialist, (L) mental retar- dation technician, and (M) mental retardation trainee; or

(2) are in positions that are assigned to job classes or job class series that are designated as direct care employee job classes or job class series by the secretary of social and rehabilitation services for purposes of this section, except that no such designation shall be effective until the sec- retary of social and rehabilitation services has presented such designation to the SRS transition oversight committee created by 1996 Substitute for House Bill No. 3047.

New Sec. 7. As used in sections 1 through 7 and amendments thereto, except as otherwise specifically provided in such statutes:

(a) ``Institution'' means Topeka state hospital or Winfield state hos- pital and training center; and

(b) ``laid off'' means, in the case of a state officer or employee in the classified service under the Kansas civil service act, being laid off under K.S.A. 75-2948 and amendments thereto and, in the case of a state officer or employee in the unclassified service under the Kansas civil service act, being terminated from employment with the state agency by the appoint- ing authority, except that ``laid off'' shall not include any separation from employment pursuant to a budget reduction or expenditure authority reduction and a reduction of F.T.E. positions under K.S.A. 1995 Supp. 75-6801 and amendments thereto.

New Sec. 8. Notwithstanding the provisions of K.S.A. 75-4321 et seq., and amendments thereto, the secretary of administration may adopt, amend and implement personnel rules and regulations that relate to mat- ters covered by memoranda of agreement entered into by state agencies and public employee organizations under K.S.A. 75-4320 et seq., and amendments thereto as deemed necessary by the secretary for purposes of implementing the provisions included in sections 1 through 7 and amendments thereto. Before adopting any such rules and regulations, the secretary of administration shall give a copy of the proposed rules and regulations and a notice of meeting to each employee organization cer- tified by the public employee relations board to represent one or more units of state employees. Notwithstanding the provisions of K.S.A. 75- 4321 et seq., and amendments thereto, after such meeting the secretary shall consider the comments from employee organizations and may there- after adopt and implement the rules and regulations as proposed or re- vised, subject to the approval of the governor. The notice, comment and hearing requirements of K.S.A. 1995 Supp. 77-421 and amendments thereto shall constitute compliance with the meet and confer require- ments of K.S.A. 75-4321 et seq., and amendments thereto for the pur- poses of implementing the provisions included in sections 1 through 7 and amendments thereto.

Sec. 9. K.S.A. 1995 Supp. 46-233 is hereby amended to read as fol- lows: 46-233. (a) (1) No state officer or employee shall in the capacity as such officer or employee be substantially involved in the preparation of or participate in the making of a contract with any person or business by which such officer or employee is employed or in whose business such officer or employee or any member of such officer's or employee's im- mediate family has a substantial interest and no such person or business shall enter into any contract where any state officer or employee, acting in such capacity, is a signatory to, has been substantially involved in the preparation of or is a participant in the making of such contract and is employed by such person or business or such officer or employee or any member of such officer's or employee's immediate family has a substantial interest in such person or business. Substantial interest means ``substan- tial interest'' as defined by K.S.A. 46-229, and amendments thereto, and any such interest held within the preceding twelve months of the act or event of participating in the preparation of making a contract.

(2) Except as otherwise provided in this subsection, whenever any individual has, within the preceding two years participated as a state of- ficer or employee in the making of any contract with any person or busi- ness, such individual shall not accept employment with such person or business for one year following termination of employment as a state officer or employee. This prohibition on accepting employment shall not apply in any case in which: (A) A state officer or employee who partici- pated in making a contract while employed by an institution that is sub- sequently closed or abolished or otherwise ceases operations or that has budget reductions imposed that are associated with such closure and who is laid off from employment with such institution for the reason of such closure, abolition or cessation of operations or such imposition of budget reductions; or (B) a state officer or employee who participated in making a contract while employed by an institution that is scheduled to be closed or abolished or to cease operations, who is scheduled to be laid off from employment with such institution for the reason of the scheduled closure, abolition or cessation of operations, and who voluntarily terminates such employment after receiving such state officer or employee's notice of the scheduled layoff. As used in this subsection (a)(2), ``laid off'' and ``layoff'' mean, in the case of a state officer or employee in the classified service under the Kansas civil service act, being laid off under K.S.A. 75-2948, and amendments thereto, and, in the case of a state officer or employee in the unclassified service under the Kansas civil service act, being ter- minated from employment with the state agency by the appointing au- thority, except that ``laid off'' and ``layoff'' shall not include any separation from employment pursuant to a budget reduction or expenditure author- ity reduction and a reduction of F.T.E. positions under K.S.A. 1995 Supp. 75-6801, and amendments thereto; and ``institution'' means Topeka state hospital or Winfield state hospital and training center.

(b) No individual shall, while a legislator or within one year after the expiration of a term as legislator, be interested pecuniarily, either directly or indirectly, in any contract with the state, which contract is funded in whole or in part by any appropriation or is authorized by any law passed during such term, except that the prohibition of this subsection (b) shall not apply to any contract interest in relation to which a disclosure state- ment is filed as provided by K.S.A. 46-239, and amendments thereto.

(c) No individual, while a legislator or within one year after the ex- piration of a term as a legislator, shall represent any person in a court proceeding attacking any legislative action taken or enactment made dur- ing any term such individual served as a legislator as being unconstitu- tional because of error in the legislative process with respect to such action or enactment unless such legislator voted no upon the enactment of the measure and declared on the record, during such term, that such legislation was unconstitutional. The prohibition of this subsection (c) shall not apply to a current or former legislator charged with a violation of such legislative action or enactment.

(d) Subsections (a) and (b) shall not apply to the following:

(1) Contracts let after competitive bidding has been advertised for by published notice; and

(2) Contracts for property or services for which the price or rate is fixed by law.

Sec. 10. K.S.A. 1995 Supp. 75-5542 is hereby amended to read as follows: 75-5542. (a) As used in K.S.A. 1995 Supp. 75-5542 to 75-5545, inclusive, and amendments thereto, ``state agency'' means the state, or any department or agency of the state, but not including the Kansas turn- pike authority, the council on vocational education or any political sub- division of the state.

(b) For the purposes of providing for the payment of compensation for accumulated sick and vacation leave on retirement from state service arising on and after July 1, 1994, and for the payment of accumulated hours of sick leave upon being laid off from state service as provided under section 2 and amendments thereto arising on and after July 1, 1996, there is hereby established the state leave payment reserve fund in the state treasury.

(c) The state leave payment reserve fund shall be liable to pay com- pensation for accumulated sick and vacation leave on retirement from state service arising on and after July 1, 1994, and for the payment of accumulated hours of sick leave upon being laid off from state service as provided under section 2 and amendments thereto arising on and after July 1, 1996. To this end and for the purposes of K.S.A. 1995 Supp. 75- 5542 to 75-5545, inclusive, and section 2, and amendments thereto, all state agencies are hereby deemed to be a single employer whose liabilities specified in subsection (b) are hereby imposed upon the state leave pay- ment reserve fund.

(d) The secretary of administration shall administer the state leave payment reserve fund and all payments from such fund shall be upon warrants of the director of accounts and reports issued pursuant to the system of payroll accounting formulated under K.S.A. 75-5501 et seq., and amendments thereto, or pursuant to K.S.A. 75-5540 and amendments thereto. The director of accounts and reports may issue warrants pursuant to vouchers approved by the secretary for payments from the state leave payment reserve fund notwithstanding the fact that claims for such pay- ments were not submitted or processed for payment from money appro- priated for the fiscal year in which the state leave payment reserve fund first became liable to make such payments.

(e) The secretary of administration shall remit all moneys received by or for the secretary in the capacity as administrator of the state leave payment reserve fund, to the state treasurer. Upon receipt of any such remittance the state treasurer shall deposit the entire amount thereof in the state treasury to the credit of the state leave payment reserve fund.

(f) In the computation of accumulated vacation leave, time served as an elected official in an elected position for which vacation leave is not credited shall not be credited to length of service for employees who are appointed to the classified or unclassified service in the executive branch of state government.

Sec. 11. K.S.A. 1995 Supp. 46-233 and 75-5542 are hereby repealed.

Sec./007006/This act shall take effect and be in force from and after its publication in the statute book.

Approved May 17, 1996.