CHAPTER 106 HOUSE BILL No. 2552 An Act concerning certain state institutions; relating to certain funds; amending K.S.A. 75-
3728e, 75-3728f and 76-12a25 and K.S.A. 2000 Supp. 76-172 and repealing the existing
sections; also repealing K.S.A. 75-3728h and 75-3728i.
Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 75-3728e is hereby amended to read as follows: 75-
3728e. As used in this act, unless the context otherwise requires:

      (a) ``Canteen'' means a retail store which offers for sale items of ne-
cessity, comfort and morale which are not otherwise are not accessible to
persons in the environment of a state institution.

      (b) ``Canteen fund'' means the moneys and other assets used for op-
eration of a canteen.

      (c) ``Benefit fund'' means the moneys and other assets available:

      (1) To provide property, services or entertainment for persons in a
state institution or in the legal custody of the secretary of corrections;

      (2) to provide incentives for program and work participation and per-
formance and other activities related to offender management for persons
in the legal custody of the secretary of corrections; or

      (3) for other purposes that benefit persons in a state institution or in
the legal custody of the secretary of corrections.

      (d) ``Work therapy project'' means a sheltered workshop or other sim-
ilar vocational training activity provided by a state institution, whether on
or off campus at a state institution.

      (e) ``Work therapy fund'' means the moneys and other assets used to
operate a work therapy project for persons in a state institution.

      (f) ``State institution'' means:

      (1) Any institution as defined by K.S.A. 38-1602, 75-5202 or 76-
12a01, and amendments thereto;

      (2) the Kansas state school for the blind;

      (3) the Kansas state school for the deaf; and

      (4) the Kansas veterans' home and the Kansas soldiers' home, which
are operated and administered by the commission on veterans affairs.

      Sec.  2. K.S.A. 75-3728f is hereby amended to read as follows: 75-
3728f. (a) The superintendent, president or other chief administrative
officer of any state institution may apply to the director of accounts and
reports for authority to establish one or more canteens, canteen funds,
work therapy funds or benefit funds in the institution supervised by such
officer. In accordance with rules and regulations adopted under the pro-
visions of this act, The director of accounts and reports may authorize
the establishment of any canteen, canteen fund, work therapy fund or
benefit fund for which application is made under this section. The director
of accounts and reports shall prescribe a system of accounts and account-
ing procedures to be used in the operation of canteens, work therapy
projects and benefit funds. Canteens and work therapy projects may make
purchases of personal property as provided in K.S.A. 75-3739, and
amendments thereto.

      (b) Moneys of canteen funds, work therapy funds and benefit funds
shall be deposited in an account of a financial institution designated by
the pooled money investment board. Such financial institution shall be:

      (1) A bank, a savings and loan association or a federally chartered
savings bank, which bank, association or savings bank is insured by the
federal government or an agency thereof, or invested in; or

      (2) a credit union which is insured with an insurer or guarantee cor-
poration as required under K.S.A. 17-2246, and amendments thereto and
is designated by the pooled money investment board.

      Except as otherwise directed by the pooled money investment board,
moneys of canteen funds, work therapy funds and benefit funds shall be
placed in one or more interest-bearing accounts.

      (c) The provisions of K.S.A. 75-4217, and amendments thereto, and
the provisions relating to security of article 42 of chapter 75 of Kansas
Statutes Annotated shall apply to accounts in banks, savings and loan
associations, credit unions and federally chartered savings banks under
this section.

      (d) Interest earned on moneys invested under this section shall be
regularly prorated at least monthly according to procedures approved by
the director of accounts and reports and credited to the appropriate can-
teen funds, work therapy funds and benefit funds from which they were
invested.

      (e) Canteen funds, work therapy funds and benefit funds shall be
subject to post audit under the provisions of the statutes contained in
article 11 of chapter 46 of Kansas Statutes Annotated.

      Sec.  3. K.S.A. 2000 Supp. 76-172 is hereby amended to read as fol-
lows: 76-172. As used in this act unless the context otherwise requires,
``institution'' means the institutions within the department of social and
rehabilitation services, the institutions within the department of correc-
tions, the institution within the department of human resources, the in-
stitutions within the juvenile justice authority,:

      (a) Any institution as defined by K.S.A. 38-1602, 75-5202 or 76-
12a01, and amendments thereto;

      (b) the Kansas state school for the blind and;

      (c) the Kansas state school for the deaf; and

      (d) the Kansas veterans' home and the Kansas soldiers' home which
are operated and administered by the commission on veterans affairs.

      Sec.  4. K.S.A. 76-12a25 is hereby amended to read as follows: 76-
12a25. (a) As used in this section, unless the context otherwise requires:

      (1) ``Key deposit fund'' means the moneys that employees pay to a
state institution to be held as a security deposit for keys to the buildings
or facilities of the state institution; and.

      (2) ``State institution'' means any institution, as defined by K.S.A. 38-
1602 or 76-12a01, and amendments thereto.

      (b) The superintendent, president, or other chief administrative of-
ficer of any state institution may apply to the director of accounts and
reports for authority to establish a key deposit fund in the institution
supervised by such officer. In accordance with rules and regulations
adopted under this section, The director of accounts and reports may
authorize the establishment of any such key deposit fund. The director
of accounts and reports shall prescribe a system of accounts and account-
ing procedures to be used in the operation of key deposit funds.

      (c) Moneys of key deposit funds in an amount prescribed by the di-
rector of accounts and reports shall be retained at the institution as cash
on hand for the purpose of making refunds of deposits to employees
terminating employment at the institution.

      (d) Unless otherwise authorized by the director of accounts and re-
ports, moneys of key deposit funds in excess of the amount prescribed
under subsection (c) shall be regularly deposited daily as provided by this
section. Such moneys shall be deposited in an account of a financial in-
stitution designated by the pooled money investment board. Such finan-
cial institution shall be:

      (1) A bank, a savings and loan association or a federally chartered
savings bank, which bank, association or savings bank is insured by the
federal government or an agency thereof, or invested in; or

      (2) a credit union which is insured with an insurer or guarantee cor-
poration as required under K.S.A. 17-2246, and amendments thereto and
is designated by the pooled money investment board.

      Except as otherwise directed by the pooled money investment board,
moneys of key deposit funds shall be placed in one or more interest-
bearing accounts. Moneys shall be withdrawn regularly from one or more
of such accounts in order to replenish cash on hand to the amount pre-
scribed in subsection (c) when necessary.

      (e) The provisions of K.S.A. 75-4217, and amendments thereto, and
the provisions relating to security of article 42 of chapter 75 of Kansas
Statutes Annotated shall apply to accounts in banks, savings and loan
associations, credit unions, and federally chartered savings banks under
this section.

      (f) Interest earned on moneys invested under this section and the
amounts of any forfeited key deposits forfeited shall be regularly trans-
ferred at least monthly and credited to the fee fund of the state institution.
The director of accounts and reports shall prescribe the circumstances
under which deposits shall be forfeited.

      (g) Key deposit funds shall be subject to post audit under the provi-
sions of the statutes contained in article 11 of chapter 46 of Kansas Stat-
utes Annotated.

      (h) The secretary of administration in the manner provided in K.S.A.
75-3706 and amendments thereto shall adopt rules and regulations relat-
ing to key deposit funds.

      (i) No key deposit fund shall be operated contrary to the provisions
of this act on or after July 1, 1993.

 Sec.  5. K.S.A. 75-3728e, 75-3728f, 75-3728h, 75-3728i and 76-12a25
and K.S.A. 2000 Supp. 76-172 are hereby repealed.
 Sec.  6. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 16, 2001.
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