CHAPTER 90 SENATE Substitute for HOUSE BILL No. 2476* An Act concerning educational institutions governed or coordinated by the state board of
regents; enacting the Kansas partnership for faculty of distinction program; prescribing
certain powers, duties and functions and guidelines therefor; transfers from the state
general fund.
Be it enacted by the Legislature of the State of Kansas:

      Section  1. As used in this act:

      (a) ``Eligible educational institution'' means any state educational in-
stitution, municipal university, community college, technical college or
vocational education school under the governance or coordination of the
state board of regents.

      (b) ``Endowment association'' means a not-for-profit endowment as-
sociation or foundation that is organized and operated exclusively to re-
ceive, hold, invest and administer moneys and property as a permanent
fund for the support and sole benefit of an eligible educational institution.

      (c) ``Qualifying gift'' means a monetary donation which (1) is a single
monetary donation from a single donor or entity or is a joint monetary
donation from or on behalf of two or more donors or entities that are
directly related or associated or that otherwise are determined by the
state board of regents to have common characteristics or similarities such
that the joint monetary donation conforms with the purposes of the pro-
gram, (2) is made in cash or the equivalent of cash, (3) has been received
by the endowment association of an eligible educational institution from
a single donor or entity for the purpose of endowing a professorship at
the eligible educational institution in accordance with the program, and
(4) is:

      (A) For community colleges, technical colleges and vocational edu-
cation schools, an aggregate amount of at least $50,000;

      (B) for Fort Hays state university, Emporia state university and Pitts-
burg state university, an aggregate amount of at least $200,000;

      (C) for Washburn university, an aggregate amount of at least
$300,000;

      (D) for Wichita state university, an aggregate amount of at least
$350,000; and

      (E) for the university of Kansas, the university of Kansas medical
center and Kansas state university of agriculture and applied science, an
aggregate amount of at least $500,000.

      (d) ``Endowed professorship'' means the position of a professor of the
faculty of an eligible educational institution for which a qualifying gift is
received by the endowment association of the eligible educational insti-
tution in accordance with the Kansas partnership for faculty of distinction
program.

      (e) ``Program'' means the Kansas partnership for faculty of distinction
program established by this act.

      (f) ``State educational institution,'' ``municipal university,'' ``commu-
nity college,'' ``technical college,'' ``vocational education school'' and ``state
board of regents'' have the meanings respectively ascribed thereto by
K.S.A. 74-3201b and amendments thereto.

      Sec.  2. (a) The Kansas partnership for faculty of distinction program
is hereby established to encourage gifts by private donors to enhance the
ability of eligible educational institutions to attract and retain faculty of
distinction. The program shall be administered by the state board of re-
gents in accordance with this act. Under the Kansas partnership for fac-
ulty of distinction program, the state shall contribute income earnings
equivalent awards in accordance with this act to supplement endowed
professorships at eligible educational institutions for which qualifying gifts
have been received by endowment associations.

      (b) Each eligible educational institution shall establish within the gen-
eral budget of the eligible educational institution a faculty of distinction
matching fund. The eligible educational institution shall establish an en-
dowed professorship account in the faculty of distinction matching fund
for each endowed professorship established under the Kansas partnership
for faculty of distinction program. All expenditures from the faculty of
distinction matching fund shall be for one or more endowed professor-
ships to supplement salary and to provide additional operating support
for assistants, travel, equipment or other expenses of the endowed pro-
fessorships.

      (c) The chancellor, president, director or other chief executive officer
of an eligible educational institution shall notify the state board of regents
of the receipt of a qualifying gift under the Kansas partnership for faculty
of distinction program. Upon receiving such notice, the state board of
regents shall determine if the donation is a qualifying gift. Except as
otherwise provided in this subsection, upon determining that a qualifying
gift has been received by the endowment association for an eligible ed-
ucational institution, the state board of regents shall certify to the director
of accounts and reports the amount and date of receipt of the qualifying
gift under the program and the endowed professorship account estab-
lished in the faculty of distinction matching fund therefor. The state board
of regents shall not make any certification to the director of accounts and
reports under this subsection prior to July 1, 2001.

      (d) No moneys committed or pledged to be given to an endowment
association prior to the effective date of this act shall be included as part
of any qualifying gift under the program, notwithstanding the date when
such moneys were actually received by the endowment association.

      Sec.  3. (a) Subject to the other provisions of this act, on the first day
of the first state fiscal year commencing after receiving a certification of
receipt of a qualifying gift under section 2 and amendments thereto, the
director of accounts and reports shall transfer from the state general fund
the amount determined by the director of accounts and reports to be the
earnings equivalent award for such qualifying gift for the period of time
between the date of certification of the qualifying gift and the first day
of the ensuing state fiscal year to either (1) the endowed professorship
account of the faculty of distinction matching fund of the eligible edu-
cational institution, in the case of a certification of a qualifying gift to an
eligible educational institution that is a state educational institution, or
(2) the faculty of distinction program fund of the state board of regents,
in the case of a certification of a qualifying gift to an eligible institution
that is not a state educational institution. Subject to the other provisions
of this act, on each July 1 thereafter, the director of accounts and reports
shall make such transfer from the state general fund of the earnings equiv-
alent award for such qualifying gift for the period of the preceding state
fiscal year. All transfers made in accordance with the provisions of this
subsection shall be considered demand transfers from the state general
fund.

      (b) There is hereby established in the state treasury the faculty of
distinction program fund which shall be administered by the state board
of regents. All moneys transferred under this section to the faculty of
distinction program fund of the state board of regents shall be paid to
eligible educational institutions that are not state educational institutions
for earnings equivalent awards for qualifying gifts to such eligible edu-
cational institutions. The state board of regents shall pay from the faculty
of distinction program fund the amount of each such transfer to the eli-
gible educational institution for the earnings equivalent award for which
such transfer was made under this section.

      (c) The earnings equivalent award for an endowed professorship shall
be determined by the director of accounts and reports and shall be the
amount of interest earnings that the amount of the qualifying gift certified
by the state board of regents would have earned at the average net earn-
ings rate of the pooled money investment board portfolio for the period
for which the determination is being made.

      (d) The total amount of new qualifying gifts which may be certified
to the director of accounts and reports under this act during any state
fiscal year for all eligible educational institutions shall not exceed
$30,000,000. The total amount of new qualifying gifts which may be cer-
tified to the director of accounts and reports under this act during any
state fiscal year for any individual eligible educational institution shall not
exceed $10,000,000. No additional qualifying gifts shall be certified by
the state board of regents under this act when the total of all transfers
from the state general fund for earnings equivalent awards for qualifying
gifts pursuant to section 3 and amendments thereto for a fiscal year is
equal to or greater than $5,000,000.

      Sec.  4. (a) The chancellor, president, director or other chief execu-
tive officer of an eligible educational institution for which a qualifying gift
has been received by the endowment association shall provide from the
eligible educational institution's operating budget a salary and full-time
position for the endowed professorship. In the manner prescribed by
policies adopted by the state board of regents, the chancellor, president,
director or other chief executive officer of an eligible educational insti-
tution having an endowed professorship under this program shall report
annually to the state board of regents a full accounting of the amounts
and purposes of all expenditures of the moneys transferred to the faculty
of distinction matching fund of the eligible educational institution under
this act and the moneys realized from the interest earned on the qualifying
gift held in trust by the endowment association for such endowed pro-
fessorship during the preceding state fiscal year.

      (b) The state board of regents shall develop and conduct an ongoing
assessment of the Kansas partnership for faculty of distinction program
which shall be commenced on or before the first day of the first state
fiscal year during which the total of all transfers from the state general
fund for earnings equivalent awards for qualifying gifts pursuant to section
3 and amendments thereto is equal to or greater the $4,000,000. The
assessment shall include evaluations of (1) the effectiveness of the pro-
gram to increase private gifts and to attract and retain professors of dis-
tinction for eligible educational institutions, (2) the economic impact of
the program on eligible educational institutions and the state, and (3)
other appropriate factors specified by the state board of regents. After
commencing the assessment of the program, the state board of regents
shall annually present a report on the assessment to the legislature at the
beginning of each regular session.

 Sec.  5. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 16, 2000.
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