CHAPTER 63 HOUSE BILL No. 2760
      An Act concerning the department of transportation; authorizing the secretary to pay em-
      ployees for the theft of certain tools or equipment; amending K.S.A. 1997 Supp. 68-416
      and repealing the existing section.

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

New Section 1. The secretary of transportation is authorized to pay
from the highway fund losses incurred by department of transportation
employees resulting from the theft of the employee's tools or equipment
when taken from a department facility or vehicle. Payment shall be al-
lowed only in circumstances where the employee's supervisor or depart-
ment policy requires the employee to furnish the tools or equipment as
a condition of employment. No payment shall be allowed where the sec-
retary finds that the employee's negligence was the primary cause of the
loss or where covered by insurance, except payment can be made to cover
any deductible. This section is separate and independent from any other
authority the secretary may have to pay losses or claims.

Sec. 2. K.S.A. 1997 Supp. 68-416 is hereby amended to read as fol-
lows: 68-416. (a) All funds received by the various counties from the sale
of benefit-district bonds heretofore or hereafter issued, under the pro-
visions of K.S.A. 68-701 and 68-709, and amendments thereto, shall be
transferred by the county treasurers to the state treasurer to be placed in
the highway fund. Such amounts shall be expended in the counties from
which they are received and for the purposes for which such bonds were
issued. Nothing in this act shall be construed to relieve any county in
which a benefit district has been organized under the provisions of K.S.A.
68-701 et seq., and amendments thereto, from the duty and liability to
issue and sell bonds under the provisions thereof in the amount necessary
to pay such part of the cost of the construction of such benefit district
roads in the benefit district required to be paid by the county, township
and benefit district. Any unexpended balance remaining in the fund in
which is placed that part of the fees for registration sent to the vehicle
department or other official designated by law to receive the same, and
appropriated for use in the administration of the motor-vehicle registra-
tion act, unexpended at the end of any calendar year, shall be placed in
the highway fund.

(b) The state highway fund shall be apportioned as follows:

(1) The fund known as the ``state highway benefit district fund'' is
discontinued and hereafter the highway fund shall be used for the pay-
ment and reimbursement of benefit district costs and assessments for
such benefit districts that have been and may hereafter be constructed
as a part of the state highway system. On the effective date of this act the
state treasurer shall transfer all state highway benefit district funds to the
highway fund.

(2) The secretary of transportation annually shall apportion and dis-
tribute quarterly to cities on the state highway system from the highway
fund moneys at the rate of $2,000 per lane per mile for the maintenance
of streets and highways in cities designated by the secretary as city con-
necting links. Unless a consolidated street and highway fund is established
pursuant to K.S.A. 12-1,119, and amendments thereto, all moneys dis-
tributed by the secretary shall be credited to the street and alley funds
of such cities. All moneys so distributed shall be used solely for the main-
tenance of city connecting links. Maintenance of such city connecting
links shall be as prescribed in K.S.A. 68-416a, and amendments thereto.
As used in this subsection, ``lane'' means the portion of the roadway for
use of moving traffic of a standard width prescribed by the secretary. In
lieu of such apportionment, the secretary, by and with the consent of the
governing body of any city within the state of Kansas, may maintain such
streets within the city and pay for such maintenance from the highway
fund.

(3) All of the remainder of such highway fund shall be used by the
secretary of transportation for: (A) The construction, improvement, re-
construction and maintenance of the state highway system; (B) improve-
ments in transportation programs to aid the elderly and disabled; (C) the
support and maintenance of the department of transportation; and (D)
the expenses of administering the motor vehicle registration and drivers'
license laws; and (E) the payment of losses to department of transportation
employees authorized by section 1. All apportionments and distribution
provided for by this section shall be made quarterly on the first day of
January, April, July and October of each year.

Sec. 3. K.S.A. 1997 Supp. 68-416 is hereby repealed.

Sec. 4. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 2, 1998

__________