CHAPTER 188
SENATE BILL No. 647
An  Act concerning the Kansas higher education coordination act; relating to the financing
of postsecondary educational institutions; the powers, duties and functions of the state
board of regents; relating to employees thereof; amending K.S.A. 46-247 and K.S.A.
2001 Supp. 71-620, 72-6503, 74-3201b, 74-3202c, 74-3202d, 74-3205a, 74-3205b, 74-
3205c and 74-3205d and repealing the existing sections.

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

      Section  1. K.S.A. 2001 Supp. 74-3201b is hereby amended to read
as follows: 74-3201b. As used in the Kansas higher education coordination
act:

      (a) ``State board of regents'' or ``state board'' means the state board
of regents provided for in the constitution of this state and established by
K.S.A. 2001 Supp. 74-3202a, and amendments thereto, except as other-
wise specifically provided in this act.

      (b) ``State educational institution'' means any state educational insti-
tution, as defined in K.S.A. 76-711, and amendments thereto.

      (c) ``Municipal university'' means Washburn university of Topeka
Washburn university of Topeka or any other municipal university estab-
lished under the laws of this state.

      (d) ``Community college'' means any community college established
under the laws of this state.

      (e) ``Technical college'' means any technical college established under
K.S.A. 72-4468, and amendments thereto the laws of this state.

      (f) ``Vocational education school'' means any area vocational school
or area vocational-technical school established under the laws of this state.

      (g) ``Public university'' means any state educational institution.

      (h) ``Postsecondary educational institution'' means any public univer-
sity, municipal university, community college, technical college and vo-
cational education school, and includes any entity resulting from the con-
solidation or affiliation of any two or more of such postsecondary
educational institutions.

      (i) ``Proprietary school'' means any proprietary school as defined in
K.S.A. 72-4919, and amendments thereto. The term proprietary school
does not include within its meaning any school or educational institution
specifically exempted from the definition of proprietary school by the
provisions of K.S.A. 72-4920, and amendments thereto.

      (j) ``Adult basic education program'' and ``adult supplementary edu-
cation program'' have the meanings respectively ascribed thereto in
K.S.A. 72-4517, and amendments thereto.

      (k) ``Representative of a postsecondary educational institution''
means any person who is the holder of an associate degree, a bachelor's
degree, or a certificate of completion awarded by a postsecondary edu-
cational institution.

      Sec.  2. K.S.A. 2001 Supp. 74-3202c is hereby amended to read as
follows: 74-3202c. (a) In the exercise of its leadership role, the state board
of regents shall be an advocate for the provision of adequate resources
and sufficient authority for all postsecondary educational institutions so
that each postsecondary educational institution can realize, within its pre-
scribed mission, role and scope, its full potential to the benefit of the
students who attend such postsecondary educational institution and to
the benefit of all Kansas residents in terms of receiving the benefits of a
highly educated and vocationally trained populace.

      (b) In addition to other duties and functions prescribed by law, the
state board of regents shall:

      (1) Serve as the representative of the public postsecondary educa-
tional system before the governor and the Kansas legislature;

      (2) provide statewide planning for higher education and adopt, from
time to time amend, revise or modify, and administer a comprehensive
plan for coordination of higher education within this state;

      (2) (3) determine institutional roles and review institutional missions
and goals for each postsecondary educational institution taking into ac-
count both institutional needs and the needs of the state's system of higher
education as a whole;

      (3) (4) develop articulation procedures so that maximum freedom of
transfer among and between postsecondary educational institutions is en-
sured;

      (4) approve or disapprove for state funding purposes existing and pro-
posed educational programs, courses of instruction and out-district pro-
gram and course locations

      (5) develop and implement, in conjunction with the postsecondary
educational institutions, a comprehensive plan for coordinating all pro-
gram offerings by postsecondary educational institutions. The board shall
not coordinate program offerings that are specifically developed and en-
tirely paid for by an entity which limits enrollment to a class of individuals
who are employees, members or business customers of the entity;

      (5) review budget requests and requests for state funding of postse-
condary educational institutions and present

      (6) develop a unified budget for higher education state funding of
postsecondary educational institutions and present such budget to the
governor and the legislature each year and receive and allocate the state
funds appropriated for funding of postsecondary educational institutions
in accordance with legislative directives, except as provided in subsection
(e) of K.S.A. 2001 Supp. 74-3202d, and amendments thereto;

      (6) (7) approve core indicators of quality performance for postsecon-
dary educational institutions after considering core indicators recom-
mended by each such postsecondary educational institution;

      (7) (8) resolve conflicts among and between postsecondary educa-
tional institutions;

      (8) (9) develop and implement a comprehensive plan for the utili-
zation of distance learning technologies;

      (9) (10) develop each year and recommend to the governor and the
legislature a policy agenda for higher education, which policy agenda shall
assess priorities among proposals for policy change, programatic recom-
mendations, and state funding requests;

      (10) (11) conduct continuous studies of ways to maximize the utili-
zation of resources available for higher education in Kansas and initiate
action for improvement;

      (11) (12) conduct continuous studies of how state policies affect
higher education and how Kansas economic and demographic trends im-
pact upon accessibility and affordability of postsecondary education to
Kansas residents, and initiate ways to improve such accessibility and af-
fordability;

      (12) (13) receive and consider reports, proposals and recommenda-
tions of the commissions and take such actions thereon as are deemed
necessary and appropriate;

      (13) (14) report annually on the performance of its functions and
duties to the governor and the legislature; and

      (14) (15) exercise such other powers and perform such other func-
tions and duties as are deemed necessary and appropriate to the fulfill-
ment of its constitutional and statutory responsibilities.

      (c) Notwithstanding any of the powers, duties and functions con-
ferred and imposed upon the state board of regents under the Kansas
higher education coordination act, the boards of trustees of the com-
munity colleges shall continue to have custody of and be responsible for
the property of their respective community colleges and shall be respon-
sible for the operation, management and control of such community col-
leges, except as otherwise expressly provided by law.

      Sec.  3. K.S.A. 2001 Supp. 74-3202d is hereby amended to read as
follows: 74-3202d. (a) During the 2000 fiscal year, the state board of
regents (1) shall review the performance indicators developed by the pos-
tsecondary educational institutions, including the municipal university; (2)
after consideration of the core indicators of quality performance identi-
fied by the respective commissions and with the active involvement of
the postsecondary educational institutions, shall approve those indicators
that the state board determines should be implemented; and (3) shall
select from among the indicators approved for implementation those in-
dicators that will become determinants for the allocation of state moneys
on the basis of performance. The indicators selected may vary among the
postsecondary educational institutions and among institutional sectors
and, if feasible, shall include indicators developed and adopted by the
governing bodies of each postsecondary educational institution based on
the needs of each such postsecondary educational institution.

      (b) During the 2001 fiscal year, the postsecondary educational insti-
tutions, including the municipal university, shall develop institutional im-
provement plans showing how they will implement the performance in-
dicators applicable to their institution and how they will measure
performance on the basis of each indicator. Institutional improvement
plans shall be revised and submitted to the state board of regents by each
institution at least every three years. The state board of regents shall
provide technical assistance to institutions in the development, imple-
mentation, and revision of their improvement plans.

      (c) Commencing on July 1, 2001, institutional improvement plans
shall be implemented for each postsecondary educational institution, in-
cluding the municipal university. Each postsecondary educational insti-
tution shall begin the data collection, measurement, or other documen-
tation necessary in order for its performance to be evaluated with regard
to each indicator.

      (d) Commencing on July 1, 2004, the state board shall have authority
to review and approve institutional improvement plans, and, on the basis
of each plan, shall develop and implement a performance agreement with
each postsecondary educational institution. Performance agreements shall
incorporate the goals, priorities, policies and mission objectives identified
in the institutional improvement plans, and the performance measures,
which will be used to demonstrate compliance and progress.

      (e) Commencing on July 1, 2005, each postsecondary educational in-
stitution's receipt of new state funds shall be contingent on achieving
compliance with its performance agreement. As used in this subsection,
``new state funds'' means that amount of state funds by which the amount
received by a postsecondary educational institution for a fiscal year ex-
ceeds the amount received by that postsecondary educational institution
for the preceding fiscal year. The state board shall determine the amount
of new state funds to be received by each postsecondary educational in-
stitution, taking into account the postsecondary educational institution's
level of compliance with its performance agreement and the funds avail-
able for distribution. Any new state funds received by a postsecondary
educational institution pursuant to a performance agreement shall be
deemed to be part of the state funds received in the preceding fiscal year
for the purposes of determining new state funds for the postsecondary
educational institution pursuant to a performance agreement for the en-
suing fiscal year. If a postsecondary educational institution is not allocated
any portion of new state funds in a fiscal year, the new state funds which
the institution was eligible to be allocated by the state board in such fiscal
year shall be deemed part of the state funds received by such institution
in such fiscal year for the purpose of determining such institution's base
budget and any new state funds for the ensuing fiscal year. The failure of
a postsecondary educational institution to enter a performance agreement
with the state board shall prevent that postsecondary educational insti-
tution from receiving any new state funds. Any funds designated by the
legislature for a specific postsecondary educational institution or purpose
shall be exempt from the provisions of this section.

      Sec.  4. K.S.A. 2001 Supp. 74-3205a is hereby amended to read as
follows: 74-3205a. (a) For the purpose of expediting the exercise of pow-
ers and the performance of functions and duties of the state board of
regents, there is derived from the state board a commission for com-
munity colleges and vocational/technical education, a commission for
public universities, and a commission for higher education coordination.
Each commission shall be composed of three members who are members
of the state board. At the time a member is appointed to the state board,
the governor shall designate the commission on which the member shall
serve so that each member of the state board is designated for service on
one of the commissions. At no time after July 1, 2002, shall there be more
than one representative of any one postsecondary educational institution
designated for service on a commission. The members of each commis-
sion shall organize annually by electing one member of their respective
commissions as chairperson. The chairperson of the state board may not
serve as the chairperson of a commission.

      (b) The provisions of this section shall expire on June 30, 2003.

      Sec.  5. K.S.A. 2001 Supp. 74-3205b is hereby amended to read as
follows: 74-3205b. (a) The commission for community colleges and vo-
cational/technical education shall meet at Topeka at least quarterly in each
year on dates fixed by the commission. Special meetings may be held
upon the call of the chairperson of the commission or upon petition to
the chairperson by the other two members of the commission. The date
and place of all special meetings shall be designated in the call. Two
members of the commission shall constitute a quorum for the transaction
of business but one member may adjourn any regular or special meeting
to a definite time and place.

      (b) The commission for community colleges and vocational/technical
education shall:

      (1) Propose for adoption by the state board rules and regulations for
supervision of the community colleges, technical colleges and vocational
education schools;

      (2) provide state wide planning for community colleges, technical col-
leges and vocational education schools.

      (3) initiate plans for institutional advancement and new educational
programs and courses of instruction;

      (4) review existing and proposed educational programs, courses of
instruction, and program and course locations and make recommenda-
tions to the state board for approval or disapproval of such programs,
courses and locations for state funding purposes;

      (5) review requests of community colleges, technical colleges and vo-
cational education schools for state funding and formulate recommen-
dations thereon;

      (6) identify core indicators of quality performance for community col-
leges, technical colleges and vocational education schools;

      (7) develop each year a policy agenda for community colleges, tech-
nical colleges and vocational education schools;

      (8) conduct continuous studies of ways to maximize the utilization of
resources available for community colleges, technical colleges and voca-
tional education schools and formulate recommendations for improve-
ment; and

      (9) make reports on the performance of its functions and duties to-
gether with any proposals and recommendations it may formulate with
respect thereto at each regular meeting of the state board.

      (c) The provisions of this section shall expire on June 30, 2003.

      Sec.  6. K.S.A. 2001 Supp. 74-3205c is hereby amended to read as
follows: 74-3205c. (a) The commission for public universities shall meet
at Topeka at least quarterly in each year on dates fixed by the commission.
Special meetings may be held upon the call of the chairperson of the
commission or upon petition to the chairperson by the other two mem-
bers of the commission. The date and place of all special meetings shall
be designated in the call. Two members of the commission shall constitute
a quorum for the transaction of business but one member may adjourn
any regular or special meeting to a definite time and place.

      (b) The commission for public universities shall:

      (1) Propose for adoption by the state board of rules and regulations
for operation and management of the state educational institutions;

      (2) initiate plans for institutional advancement and new educational
programs and courses of instruction;

      (3) formulate budget requests for the state educational institutions;

      (4) review existing educational programs and courses of instruction
at the public universities and evaluate the educational and economic jus-
tification, or lack thereof, for such programs and courses;

      (5) identify core indicators of quality performance for public univer-
sities;

      (6) make recommendations to the state board with respect to the
appointment of chief executive officers of the state educational institu-
tions;

      (7) develop each year a policy agenda for public universities;

      (8) conduct continuous studies of ways to maximize the utilization of
resources available for public universities and formulate recommenda-
tions for improvement; and

      (9) make reports on the performance of its functions and duties to-
gether with any proposals and recommendations it may formulate with
respect thereto at each regular meeting of the state board.

      (c) The provisions of this section shall expire on June 30, 2003.

      Sec.  7. K.S.A. 2001 Supp. 74-3205d is hereby amended to read as
follows: 74-3205d. (a) The commission for higher education coordination
shall meet at Topeka at least quarterly in each year on dates fixed by the
commission. Special meetings may be held upon the call of the chairper-
son of the commission or upon petition to the chairperson by the other
two members of the commission. The date and place of all special meet-
ings shall be designated in the call. Two members of the commission shall
constitute a quorum for the transaction of business but one member may
adjourn any regular or special meeting to a definite time and place.

      (b) The commission for higher education coordination shall:

      (1) Conduct continuous review and evaluation of the comprehensive
plan for coordination of higher education and make recommendations as
deemed necessary and appropriate for amendment, revision or modifi-
cation of the plan;

      (2) review existing and proposed educational programs, courses of
instruction, and program and course locations and make recommenda-
tions to the state board with respect to the coordination of such programs,
courses and locations;

      (3) collect and analyze data and maintain a uniform postsecondary
education data base;

      (4) formulate recommendations for resolution of conflicts among and
between postsecondary educational sectors and institutions;

      (5) compile and coordinate core indicators of quality performance for
postsecondary educational institutions;

      (6) broker affiliations and mergers of postsecondary educational in-
stitutions;

      (7) coordinate a state system interface with the municipal university
universities and with private colleges and universities;

      (8) formulate budget requests for state student financial assistance
programs; and

      (9) make reports on the performance of its functions and duties to-
gether with any proposals and recommendations it may formulate with
respect thereto at each regular meeting of the state board.

      (c) On June 30, 2003, the provisions of subsection (a) of this section
shall expire and shall be of no force and effect. On and after June 30,
2003, the powers and duties of the commission for higher education co-
ordination shall be powers and duties of the state board of regents and
the references in subsection (b) to the commission for higher education
coordination shall mean the state board of regents. On and after June 30,
2003, the state board shall have authority to establish and organize such
commissions, committees, advisory councils or other groups as it shall
deem necessary and appropriate to the fulfillment of its constitutional and
statutory responsibilities.

      Sec.  8. K.S.A. 2001 Supp. 71-620 is hereby amended to read as fol-
lows: 71-620. (a) In each fiscal year, commencing with the 2001 fiscal
year, each community college is entitled to an operating grant from the
state general fund in an amount to be determined by the state board. The
state board shall:

      (1) Determine the average amount of moneys from the state general
fund expended per FTE lower division undergraduate student in the
preceding fiscal year at the regional state educational institutions;

      (2)  (A) in the 2001 fiscal year, compute 50% of the amount deter-
mined under (1); (B) in the 2002 fiscal year, compute 55% of the amount
determined under (1); (C) in the 2003 fiscal year, compute 60% of the
amount determined under (1); in the 2004 fiscal year and in each fiscal
year thereafter, compute 65% of the amount determined under (1);

      (3) determine the total number of FTE students of all the community
colleges;

      (4) multiply the amount computed under (2) by the total number of
FTE students determined under (3). Subject to the provisions of subsec-
tion (e) of K.S.A. 2001 Supp. 74-3202d, and amendments thereto, the
product is the total amount of operating grants the community colleges
are entitled to receive for the fiscal year.

      (5) Each community college which is not an officially designated area
vocational school shall receive an amount equivalent to the difference
between credit hour state aid received in the 1999 fiscal year for credit
hours in any subject or course approved as a vocational education subject
or course and 11/6 times the amount of credit hour state aid received in
the 1999 fiscal year for credit hours in any subject or course approved as
a vocational education subject or course. The amount determined under
this provision shall be distributed in equal installments in the 2001
through 2004 fiscal years as a part of the community college's operating
grant, but shall not be subject to the provisions of K.S.A. 71-204, and
amendments thereto.

      (6) In each fiscal year, the state board, for the purpose of allocating
the amount determined under (4) to the community colleges, shall deduct
the total of the amounts determined under (5) from the amount deter-
mined under (4).

      (7) In the 2001 fiscal year, the remaining balance determined under
(6) shall be allocated to each community college according to the ratio
the total amount of state aid received by the community college in the
2000 fiscal year bears to the total amount of state aid received by all
community colleges in the 2000 fiscal year, subject to adjustments for
changes in each community college's FTE enrollment from the 2000 fis-
cal year to the 2001 fiscal year.

      (8) In the 2002 fiscal year and in each fiscal year thereafter, the re-
maining balance determined under (6) shall be allocated to each com-
munity college according to the ratio the amount of the operating grant
received by the community college in the prior fiscal year bears to the
total amount of operating grants received by all community colleges in
the prior fiscal year, subject to adjustments for changes in each com-
munity college's FTE enrollment from the prior fiscal year to the current
fiscal year.

      (b) In each fiscal year, commencing with the 2003 fiscal year, each
community college is eligible to receive a quality performance grant from
the state general fund. If the state board determines that the community
college has demonstrated effectiveness in complying with its role and
mission statement and has met or exceeded the core indicators of quality
performance for community colleges identified and approved by the state
board, the community college shall receive a quality performance grant
in an amount which shall be determined by the state board by computing
2% of the amount of the operating grant the community college received
in the preceding fiscal year. The computed amount is the amount of the
quality performance grant the community college shall receive for the
fiscal year.

      (c) For the purposes of this section, the FTE enrollment of the com-
munity college shall be based on: (1) Enrollment of students who are
residents of the state of Kansas, or are considered residents of the state
of Kansas pursuant to the provisions of K.S.A. 2001 Supp. 71-407, and
amendments thereto; and (2) the greater of FTE enrollment of the com-
munity college in the current fiscal year or FTE enrollment in the pre-
ceding fiscal year.

      (d) As used in this section, the term regional state educational insti-
tutions means Emporia state university, Fort Hays state university and
Pittsburg state university and the term lower division undergraduate stu-
dent means a freshman or sophomore.

      Sec.  9. K.S.A. 2001 Supp. 72-6503 is hereby amended to read as
follows: 72-6503. (a) In each fiscal year, the university is entitled to an
operating grant from the state general fund in an amount to be deter-
mined by the state board. The state board shall:

      (1) Determine the average amount of moneys from the state general
fund expended per FTE lower division undergraduate student in the
preceding fiscal year at the regional state educational institutions;

      (2)  (A) in the 2002 fiscal year, compute 55% of the amount deter-
mined under (1); (B) in the 2003 fiscal year, compute 60% of the amount
determined under (1); (C) in the 2004 fiscal year and in each fiscal year
thereafter, compute 65% of the amount determined under (1);

      (3) multiply the amount computed under (2) by the number of FTE
students of the university. Subject to the provisions of subsection (e) of
K.S.A. 2001 Supp. 74-3202d, and amendments thereto, the product is the
amount of the operating grant the university is entitled to receive for the
fiscal year.

      (b) In each fiscal year, commencing with the 2003 fiscal year, the
university is eligible to receive a quality performance grant from the state
general fund. If the state board determines that the university has dem-
onstrated effectiveness in complying with its mission and goals statement
and has met or exceeded the core indicators of quality performance iden-
tified and approved for the university by the state board, the university
shall receive a quality performance grant in an amount which shall be
determined by the state board by computing 2% of the amount of the
operating grant the university received in the preceding fiscal year. The
computed amount is the amount of the quality performance grant the
university shall receive for the fiscal year.

      (c)  (1) For the purposes of this section, the FTE enrollment of the
university shall be based on: (A) Enrollment of students who are residents
of the state of Kansas; and (B) the greater of FTE enrollment in the
second or third fiscal year preceding the fiscal year for which the appro-
priation for the operating grant is made.

      (2) As used in this section, the term regional state educational insti-
tutions means Emporia state university, Fort Hays state university and
Pittsburg state university and the term lower division undergraduate stu-
dent means a freshman or sophomore.

      (d) Moneys received as state grants from the state general fund shall
not be expended for the purpose of expansion of graduate programs or
for the purpose of expansion of off-campus programs without the prior
approval of the state board.

      Sec.  10. K.S.A. 46-247 is hereby amended to read as follows: 46-247.
The following individuals shall file written statements of substantial in-
terests, as provided in K.S.A. 46-248 to 46-252, inclusive, and amend-
ments thereto:

      (a) Legislators and candidates for nomination or election to the leg-
islature;.

      (b) Individuals holding an elected office in the executive branch of
this state, and candidates for nomination or election to any such office;.

      (c) State officers, employees and members of boards, councils and
commissions under the jurisdiction of the head of any state agency who
are listed as designees by the head of a state agency pursuant to K.S.A.
46-285, and amendments thereto;.

      (d) Individuals whose appointment to office is subject to confirmation
by the senate whether or not such individual is a state officer or em-
ployee;.

      (e) General counsels for state agencies irrespective of how compen-
sated;.

      (f) The administrator or executive director of the education commis-
sion of the states, the interstate compact on agricultural grain marketing,
the Mo-Kan metropolitan development district and agency compact, the
Kansas City area transportation district and authority compact, the mid-
west nuclear compact, the central interstate low-level radioactive waste
compact, the multistate tax compact, the Kansas-Oklahoma Arkansas river
basin compact, the Kansas-Nebraska Big Blue river compact, and the
multistate lottery;.

      (g) Private consultants under contract with any agency of the state of
Kansas to evaluate bids for public contracts or to award public contracts.

      (h) From and after January 1, 2003, any faculty member or other
employee of a postsecondary educational institution as defined by K.S.A.
2001 Supp. 74-3201b, and amendments thereto, who provides consulting


services and who, on behalf of or for the benefit of the person for which
consulting services are provided:

      (1) Promotes or opposes action or nonaction by any federal agency,
any state agency as defined by K.S.A. 46-224, and amendments thereto,
or any political subdivision of the state or any agency of such political
subdivision or a representative of such state agency, political subdivision
or agency; or

      (2) promotes or opposes action or nonaction relating to the expendi-
ture of public funds of the federal government, the state or political sub-
division of the state or agency of the federal government, state or political
subdivision of the state.

 Sec.  11. K.S.A. 46-247 and K.S.A. 2001 Supp. 71-620, 72-6503, 74-
3201b, 74-3202c, 74-3202d, 74-3205a, 74-3205b, 74-3205c and 74-3205d
are hereby repealed.

 Sec.  12. This act shall take effect and be in force from and after its
publication in the statute book.

Approved May 30, 2002.
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