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AN ACT concerning state finances; relating to the ending balance in the state
     general fund; providing for
  temporary cash flow certificates; establishing the property tax reduction
     fund; amending K.S.A. 75-4001 and
  K.S.A. 1996 Supp. 75-3725a and 75-6702 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
  Section 1.  K.S.A. 75-4001 is hereby amended to read as follows: 75-4001. As
     used in this act:
  (a)  ``Public security'' means a bond, note, certificate of indebtedness,
     temporary cash flow certificate or
other obligation for the payment of money, issued by this state or by any of its
     departments, agencies, boards,
or other instrumentalities or by any of its political or taxing subdivisions.
  (b)  ``Instrument of payment'' means a check, draft, warrant, or order for
     the payment, delivery, or transfer
of funds.
  (c)  ``Authorized officer'' means any official of this state or any of its
     departments, agencies, boards, or other
instrumentalities or any of its political or taxing subdivisions whose signature
     to a public security or instrument
of payment is required or permitted.
  (d)  ``Facsimile signature'' means a reproduction by engraving, imprinting,
     stamping, or other means of the
manual signature of an authorized officer.
  Sec. 2.  K.S.A. 1996 Supp. 75-3725a is hereby amended to read as follows:
     75-3725a. (a) Whenever it appears
that the estimated resources for any fiscal year in the state general fund are
     sufficient to meet in full the
estimated expenditures and obligations for that fiscal year, but that the
     estimated resources in the state general
fund in any month or months of such fiscal year are insufficient to meet in full
     the estimated expenditures and
obligations for such month or months as the same become due, the director of the
     budget shall so inform the
secretary of administration. Unless the secretary finds that the estimates of
     the director of the budget are grossly
incorrect, the secretary shall inform the governor of the report of the director
     of the budget, and thereupon
the governor shall call a meeting of the state finance council within 48 hours
     after receiving such notice for the
sole purpose of implementing provisions of this act. At such meeting the
     director of the budget shall inform
the state finance council of the facts which caused the meeting to be called and
     together with the director of
accounts and reports shall report upon the finances of the state relevant to the
     call of such meeting, including
the availability of moneys invested in accordance with the provisions of article
     42 of chapter 75 of the Kansas
Statutes Annotated, and amendments thereto, to meet all the obligations of the
     state as the same become due.
Thereupon the state finance council may by the affirmative vote of the governor
     and of six of the legislator
members of the council order the pooled money investment board to issue a
     written temporary cash flow
certificate of indebtedness subject to redemption from the state general fund
     not later than June 30 next
following the issuance of such temporary cash flow certificate of indebtedness.
     Upon the issuance of any such
temporary cash flow certificate of indebtedness the state treasurer shall
     purchase the same for the amount
specified therein from state moneys available for investment in accordance with
     the provisions of article 42 of
chapter 75 of Kansas Statutes Annotated, and amendments thereto. Upon the
     occurrence of any such purchase
the state treasurer and the director of accounts and reports shall make
     appropriate entries to credit the state
general fund in the amount of the state treasurer's purchase. In the event that
     the state finance council orders
the issuance of any temporary cash flow certificate of indebtedness under
     authority of this act, the amount
thereof shall be sufficient in the opinion of the state finance council to
     increase the resources of the state
general fund such that such resources will be sufficient to meet the estimated
     expenditures and obligations
from the state general fund in each month for the balance of such fiscal year.
     No interest shall accrue or be
paid on any such temporary cash flow certificate of indebtedness. Not later than
     June 30 following the issuance
of any such temporary cash flow certificate of indebtedness the pooled money
     investment board shall redeem
such temporary cash flow certificate of indebtedness by issuing an order to the
     state treasurer to return such
temporary cash flow certificate of indebtedness with the word ``canceled''
     written across the same by the state
treasurer, and thereupon the state treasurer and the director of accounts and
     reports shall make appropriate
entries to reduce the balance of the state general fund by the amount specified
     in such temporary cash flow
certificate of indebtedness and restore the same to the state moneys available
     for investment in accordance
with the provisions of article 42 of chapter 75 of Kansas Statutes Annotated,
     and amendments thereto.
  (b)  Whenever it appears that the estimated resources for any fiscal year in
     the state general fund are suf-
ficient to meet in full the estimated expenditures and obligations from such
     fund for such fiscal year and in
addition to redeem any outstanding temporary cash flow certificates of
     indebtedness issued pursuant to sub-
section (a), but that the estimated resources in the state general fund,
     including the amount of any outstanding
temporary cash flow certificate of indebtedness, in any month or months of such
     fiscal year are insufficient to
meet in full the estimated expenditures and obligations for such month or months
     as the same become due, the
state finance council may direct the pooled money investment board to issue
     another temporary cash flow
certificate of indebtedness. The issuance and redemption of any temporary cash
     flow certificate of indebtedness
issued under this subsection (b) shall be governed by the provisions of
     subsection (a).
  Sec. 3.  K.S.A. 1996 Supp. 75-6702 is hereby amended to read as follows:
     75-6702. (a) The last appropriation
bill passed in any regular session of the legislature shall be the omnibus
     reconciliation spending limit bill. Each
bill which is passed during a regular session of the legislature and which
     appropriates or transfers money from
the state general fund for the ensuing fiscal year shall contain a provision
     that such bill shall take effect and be
in force from and after the effective date of the omnibus reconciliation
     spending limit bill for that regular
session of the legislature or from and after such effective date and a
     subsequent date or an event occurring
after such effective date.
  (b)  The maximum amount of expenditures and demand transfers from the state
     general fund that may be
authorized by act of the legislature during the 1994 1997 regular session of the
     legislature and each regular
session of the legislature thereafter, is hereby fixed so that there will be an
     ending balance in the state general
 fund for the ensuing fiscal year that is equal to 71/2% or more of the total
     amount authorized to be expended
or transferred by demand transfer from the state general fund in such fiscal
     year, except that on September 1,
 1997, an amount equal to 46.67% of 71/2% of the currently authorized
     expenditures and demand transfers to be
made from the state general fund in fiscal year 1998, as determined by the
     director of the budget, shall be
transferred by the director of accounts and reports from the state general fund
     to the property tax reduction fund.
  (c)  The maximum amount of expenditures and demand transfers from the state
     general fund that may be
authorized by act of the legislature during the 1998 regular session of the
     legislature and each regular session of
the legislature thereafter, is hereby fixed so that there will be an ending
     balance in the state general fund for the
ensuing fiscal year that is equal to 4% or more of the total amount authorized
     to be expended or transferred by
demand transfer from the state general fund in such fiscal year.
  New Sec. 4.  There is hereby created in the state treasury the property tax
     reduction fund. Moneys credited
to the property tax reduction fund shall be used for the purpose of reducing
     property taxes. No expenditures
shall be made from this fund except upon specific authorization by an act of the
     legislature.
  Sec. 5.  K.S.A. 75-4001 and K.S.A. 1996 Supp. 75-3725a and 75-6702 are hereby
     repealed.
  Sec. 6.  This act shall take effect and be in force from and after its
     publication in the statute book.