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AN ACT concerning community colleges; relating to determination of
  credit hour state aid and out-district tuition and state aid; amending
  K.S.A. 71-1702 and K.S.A. 1996 Supp. 71-301 and 71-602 and re-
  pealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
  Section 1.  K.S.A. 1996 Supp. 71-301 is hereby amended to read as
follows: 71-301. (a) The board of trustees shall charge to and collect from
each student tuition at rates per credit hour enrolled which shall be es-
tablished by the board of trustees.
  (b)  The board of trustees, in accordance with rules and regulations
of the state board, shall determine an amount of out-district tuition to be
charged for each out-district student attending the community college.
The board of county commissioners of any county charged with payment
of out-district tuition shall levy a tax on all of the taxable property of the
county sufficient to pay all out-district tuition charges authorized by this
act. The proceeds from the tax levied under authority of this section shall
be deposited in a special fund for payment of out-district tuition. Upon
receiving a statement of charges for out-district tuition, the board of
county commissioners shall allow and pay the same from the special fund
within 45 days from the receipt of such statement. If there is insufficient
or no money in the special fund, out-district tuition shall be paid from
the county general fund or from the proceeds of the sale of no-fund
warrants issued for the purpose of the payment of out-district tuition. If
the board of county commissioners fails to pay such amount at the time
required under this subsection, the board of trustees shall notify the state
board of such failure to pay and shall certify to the state board the amount
to be paid. Upon receipt by the state board of such notification, the
amount to be paid as certified to the state board shall become an amount
due and owing to the state board. The state board shall notify the board
of county commissioners that this amount is now due and owing to the
state board. If the board of county commissioners fails to pay such amount
to the state board within 14 days of the receipt of such notification, the
state board shall initiate proceedings under K.S.A. 75-6201 et seq. for the
collection of such money. Money paid to or collected by the state board
under this subsection shall be deposited in the out-district tuition sus-
pense account which is hereby created in the state treasury. The state
board shall pay moneys from this account, in accordance with rules and
regulations of the state board, to the community colleges entitled to re-
ceive such money.
  (c)  The total out-district tuition charged by a community college shall
be an amount equal to the number of duly enrolled out-district students
times $24 $28 for each credit hour of each such student.
  (d) (1)  Out-district tuition shall only be charged for credit hours of
out-district students if such students, as determined by the state board,
have not more than 64 credit hours from any institution of postsecondary
education or the students have not more than 72 credit hours and are
enrolled in terminal type nursing courses or freshman-sophomore level
preengineering courses.
  (2)  The credit hour limitations prescribed by provision (1) of this
subsection do not apply to credit hours of out-district students if such
students, as determined by the state board, are enrolled in an approved
vocational education program at a community college for the purpose of
receiving vocational or technical training or retraining in preparation for
gainful employment.
  (e)  In May of each fiscal year, the board of trustees shall notify the
board of county commissioners of the approximate amount of out-district
tuition which will be charged to the county in the succeeding fiscal year.
  (f)  Expenditures for out-district tuition shall be exempt from the
budget law of this state to the extent of such payments not anticipated in
the budget of the county.
  Sec. 2.  K.S.A. 1996 Supp. 71-602 is hereby amended to read as fol-
lows: 71-602. (a) Each community college is entitled to receive credit
hour state aid. The basis for payments of credit hour state aid for com-
munity colleges for each credit hour of each duly enrolled student shall
be: (1) For each credit hour in any subject or course which is not part of
a vocational education program approved by the state board under the
provisions of article 44 of chapter 72 of Kansas Statutes Annotated, an
amount which shall be provided for by the legislature in acts making
appropriations for the credit hour state aid entitlement of community
colleges; and (2) for each credit hour in any subject or course which is
part of a vocational education program approved by the state board under
the provisions of article 44 of chapter 72 of Kansas Statutes Annotated,
an amount which shall be determined by the state board by multiplying
 by 11/2 the amount provided for by the legislature under (1), except that
the amount provided for by the legislature under (1) for each credit hour
of each student shall be multiplied by two if the credit hour is in any
subject or course which is part of an approved vocational education pro-
gram which is offered in a community college which is also officially
designated as an area vocational school by the state board or if the credit
hour is in any subject or course which is part of an approved vocational
education program transferred to a community college in accordance with
an agreement made and entered into under authority of K.S.A. 71-1507,
and amendments thereto.
  (b)  Credit hour state aid payments shall be made only for credit hours
of duly enrolled students if such students, as determined by the state
board, are residents of the state of Kansas.
  (c)  The determination of credit hours of duly enrolled students shall
be made at times prescribed by the state board of education.
  Sec. 3.  K.S.A. 71-1702 is hereby amended to read as follows: 71-
1702. (a) The governing body of an area vocational school or area voca-
tional-technical school which is consolidated with and made a part of a
community college in accordance with the provisions of this act shall enter
into a consolidation agreement with the board of trustees of the com-
munity college with which such area vocational school or area vocational-
technical school is consolidated.
  (b)  Every consolidation agreement entered into under this section
shall provide for:
  (1)  The disposition of all real property of the affected area vocational
school or area vocational-technical school, which disposition shall not be
in contravention of the provisions of subsection (d) of K.S.A. 71-201, and
amendments thereto;
  (2)  the disposition of all personal property, records and moneys, in-
cluding state and federal financial aid, of the affected area vocational
school or area vocational-technical school;
  (3)  the payment of all lawful debts of the affected area vocational
school or area vocational-technical school, including any outstanding
bonded indebtedness attributable to the operation thereof;
  (4)  the payment of all accrued compensation or salaries of all person-
nel of the affected area vocational school or area vocational-technical
school;
  (5)  the transfer of personnel, if such personnel are deemed necessary,
in the employment of the affected area vocational school or area voca-
tional-technical school to the employment of the community college; and
  (6)  such other matters as may need to be addressed as the result of
such consolidation by the affected area vocational school or area voca-
tional-technical school and the community college.
  (c)  Immediately upon execution of each consolidation agreement en-
tered into under this section, the state board of education shall be notified
thereof by the board of trustees of the affected community college. The
state board shall review and approve such consolidation agreement and,
upon approval of such agreement, the state board, for purpose of deter-
mining credit hour state aid under K.S.A. 71-602, and amendments
thereto, shall issue an order officially designating the community college
as an area vocational school.
  (d)  When any conflict arises as to the proper disposition of property,
records or funds or as to the assumption and payment of any debts as a
result of any consolidation effected under this act, such conflict shall be
determined and resolved by the state board of education and such de-
termination and resolution shall be final.
  Sec. 4.  K.S.A. 71-1702 and K.S.A. 1996 Supp. 71-301 and 71-602 are
hereby repealed.
  Sec. 5.  This act shall take effect and be in force from and after its
publication in the statute book.