CHAPTER 163
SENATE BILL No. 102
An  Act concerning the department of corrections; relating to the correctional industries
fund; amending K.S.A. 75-3717b, 75-5281, 75-5282 and 75-5288 and repealing the ex-
isting sections.

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

      Section  1. K.S.A. 75-3717b is hereby amended to read as follows: 75-
3717b. (a) Whenever a state agency proposes a capital improvement pro-
ject for the construction of a building or for major repairs or improve-
ments to a building, such state agency shall prepare a capital improvement
budget estimate to be submitted to the division of the budget in such
form as may be required by the director of the budget and this section.
Such state agency shall prepare and include as a part of such capital
improvement budget estimate a written program statement describing
the project. Such program statement shall: (1) Include a detailed justifi-
cation for the project including an analysis of the programs, activities and
other needs and intended uses for the additional or improved space and
an analysis of the alternative means by which such space needs and uses
could be satisfied; (2) request appropriations for the project in the three
phases of preliminary planning, final planning and construction; (3) de-
scribe in detail each such phase of the project; and (4) include cost esti-
mates for land, site surveys, soil investigations, equipment, buildings or
major repairs or improvements to buildings and other items necessary for
the project.

      (b) Not later than July 1 of each year, such state agency shall submit
to the division of the budget a copy of such capital improvement budget
estimate, and all amendments and revisions thereof, and at the same time
such state agency shall submit copies of such capital improvement budget
estimate, and all amendments and revisions thereof, directly to the state
building advisory commission and to the joint committee on state building
construction.

      (c) On or before November 15 each year, the state building advisory
commission shall report and make recommendations on each capital im-
provement budget estimate received pursuant to this section regarding
the project costs, projected scheduling of funding for such costs, and such
other matters as are deemed appropriate by the state building advisory
commission, to: (1) The division of the budget; (2) the joint committee
on state building construction; and (3) the legislative research depart-
ment.

      (d) Not later than July 1 of each year, each state agency submitting
such budget estimates shall prepare and submit to the division of the
budget, to the state building advisory commission and to the joint com-
mittee on state building construction copies of a five-year capital improve-
ment program and facilities plan which shall set forth the current and
future space needs and utilization plans for the next five ensuing fiscal
years for that state agency in such form and containing such additional
information as prescribed by the secretary of administration.

      (e) Except as provided in this subsection, the provisions of this section
do not apply to any capital improvement project for the adjutant general
that is funded entirely by moneys from the federal government. During
the month of January each year, the adjutant general shall present a report
to the joint committee on state building construction on all capital im-
provement projects that are funded entirely by moneys from the federal
government and that are proposed for the current and ensuing fiscal
years.

      (f) The provisions of this section do not apply to any capital improve-
ment project for Kansas correctional industries of the department of cor-
rections as provided in subsection (d) of K.S.A. 75-5282, and amendments
thereto.

      Sec.  2. K.S.A. 75-5281 is hereby amended to read as follows: 75-
5281. (a) The secretary is empowered to enter into contracts and agree-
ments with any person, firm or corporation upon a self-liquidating basis
for the acquisition and, purchase or lease of equipment, tools, supplies
and, materials and buildings for manufacturing or for providing services,
to the end that the same may be paid for over a period of not exceeding
ten (10) 20 years, and the aggregate amount of such purchases or acqui-
sitions shall not exceed five hundred thousand dollars ($500,000) unless
specifically approved by the governor. All such amounts shall be payable
solely out of the revenues derived from the goods produced and the
services provided by the correctional system from the correctional indus-
tries fund.

      (b) Nothing in this section shall be so construed or interpreted as to
authorize or permit the incurring of a state debt of any kind or nature as
contemplated by the constitution of this state in relation to such debt.

      Sec.  3. K.S.A. 75-5282 is hereby amended to read as follows: 75-
5282. (a) There is hereby created in the state treasury the correctional
industries fund.

      (b) All moneys collected by the secretary from the sale or disposition
of goods manufactured and services provided under the prison-made
goods act shall be remitted to the state treasurer at least monthly. The
state treasurer shall deposit each such remittance in the state treasury
and credit it to the correctional industries fund. All the moneys collected
and deposited pursuant to this subsection shall be used solely for the
purchase of manufacturing supplies, equipment and machinery, for the
repair, maintenance and replacement of equipment and machinery, and
for administrative expenses and as provided in subsection (d).

      (c) The balance of all proceeds from the lease of agricultural land at
a correctional institution, after payment of the expenses of the lease from
such proceeds, shall be remitted to the state treasurer at least monthly.
Upon receipt of each such remittance, the state treasurer shall deposit
the entire amount thereof in the state treasury and such amount shall be
credited to the correctional industries fund.

      (d) Any unencumbered moneys in the correctional industries fund
may be expended for capital improvement projects for the renovation or
repair of existing buildings or facilities or for the construction or acqui-
sition of building or facilities for correctional industries as provided in
K.S.A. 75-5281 and 75-5288 and amendments thereto. Such capital im-
provement projects shall not be subject to the requirements to prepare
and submit capital improvement budget estimates as provided in K.S.A.
75-3717b, and amendments thereto. Prior to commencement of a capital
improvement project, the director of Kansas correctional industries shall
advise and consult with the joint committee on state building construction
concerning such capital improvement projects.

      Sec.  4. K.S.A. 75-5288 is hereby amended to read as follows: 75-
5288. (a) Notwithstanding the provisions of K.S.A. 75-3738 to 75-3744,
inclusive, and amendments thereto or of any other laws to the contrary,
the secretary of corrections may lease one or more buildings or portions
thereof on the grounds of any correctional institution, together with the
real estate needed for reasonable access to and egress from the leased
buildings, for a term not to exceed twenty (20) years, to a private individ-
ual, firm, corporation or other lawful entity for the purpose of establishing
and operating a business enterprise for the manufacture and processing
of goods, wares or merchandise, or any other business or commercial
enterprise deemed by the secretary of corrections to be consistent with
the proper training and rehabilitation of inmates.

      (b) Subject to approval by the secretary of corrections, any corpora-
tion operating a factory or other business or commercial enterprise under
this section may employ selected inmates of the correctional institution
upon whose grounds it operates.

      (c) Notwithstanding the provisions of K.S.A. 75-3738 to 75-3744, in-
clusive, article 12 of chapter 75 of the Kansas Statutes Annotated, article
58 of chapter 75 of the Kansas Statutes Annotated, and amendments
thereto, or of any other laws to the contrary, the secretary of corrections
may enter into agreements with a private individual, firm, corporation or
other lawful entity for the purpose of accepting as a donation, lease or
purchase, on behalf of the state any building or renovation of a building
to be used for the manufacture and processing of goods, wares or mer-
chandise, or any other business or commercial enterprise deemed by the
secretary of corrections to be consistent with the proper training and
rehabilitation of inmates.

      (1) Such agreements may provide for the financing, design, construc-
tion or renovation of such buildings on the grounds of correctional facil-
ities. The secretary may not obligate the expenditure of state funds except
as provided by K.S.A. 75-5281 and amendments thereto.

      (2) Buildings constructed or renovated pursuant to this section shall
become the property of the state as provided by such agreements or after
20 years, whichever time period is shorter.

      (d) Any business enterprise established under the provisions of this
section shall be deemed a private enterprise and subject to all the laws,
rules and regulations of this state governing the operation of similar busi-
ness enterprises elsewhere in this state.

      (d) (e) The authority of the secretary of corrections over the institu-
tions of the department of corrections and the inmates thereof shall not
be diminished by this section.

 Sec.  5. K.S.A. 75-3717b, 75-5281, 75-5282 and 75-5288 are hereby
repealed.

 Sec.  6. This act shall take effect and be in force from and after its
publication in the statute book.

I hereby certify that the above BILL originated in the
SENATE, and passed that body

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SENATE adopted
  Conference Committee Report ______________________________

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President of the Senate
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Secretary of the Senate
Passed the HOUSE
     as amended ______________________________
HOUSE adopted
  Conference Committee Report ______________________________

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Speaker of the House
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Chief Clerk of the House
APPROVED ______________________________

__________________________________
Governor
Approved May 13, 1999.
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