Session of 1998
                   
HOUSE BILL No. 2826
         
By Joint Committee on Corrections and Juvenile Justice Oversight
         
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            9             AN ACT concerning the department of corrections; relating to the cor-
10             rectional industries fund; amending K.S.A. 75-3717b, 75-5281, 75-
11             5282, and 75-5288 and repealing the existing sections.
12            
13       Be it enacted by the Legislature of the State of Kansas:
14           Section 1. K.S.A. 75-3717b is hereby amended to read as follows: 75-
15       3717b. (a) Whenever a state agency proposes a capital improvement pro-
16       ject for the construction of a building or for major repairs or improve-
17       ments to a building, such state agency shall prepare a capital improvement
18       budget estimate to be submitted to the division of the budget in such
19       form as may be required by the director of the budget and this section.
20       Such state agency shall prepare and include as a part of such capital
21       improvement budget estimate a written program statement describing
22       the project. Such program statement shall: (1) Include a detailed justifi-
23       cation for the project including an analysis of the programs, activities and
24       other needs and intended uses for the additional or improved space and
25       an analysis of the alternative means by which such space needs and uses
26       could be satisfied; (2) request appropriations for the project in the three
27       phases of preliminary planning, final planning and construction; (3) de-
28       scribe in detail each such phase of the project; and (4) include cost esti-
29       mates for land, site surveys, soil investigations, equipment, buildings or
30       major repairs or improvements to buildings and other items necessary for
31       the project.
32           (b) Not later than July 1 of each year, such state agency shall submit
33       to the division of the budget a copy of such capital improvement budget
34       estimate, and all amendments and revisions thereof, and at the same time
35       such state agency shall submit copies of such capital improvement budget
36       estimate, and all amendments and revisions thereof, directly to the state
37       building advisory commission and to the joint committee on state building
38       construction.
39           (c) On or before November 15 each year, the state building advisory
40       commission shall report and make recommendations on each capital im-
41       provement budget estimate received pursuant to this section regarding
42       the project costs, projected scheduling of funding for such costs, and such
43       other matters as are deemed appropriate by the state building advisory

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  1       commission, to: (1) The division of the budget; (2) the joint committee
  2       on state building construction; and (3) the legislative research depart-
  3       ment.
  4           (d) Not later than July 1 of each year, each state agency submitting
  5       such budget estimates shall prepare and submit to the division of the
  6       budget, to the state building advisory commission and to the joint com-
  7       mittee on state building construction copies of a five-year capital improve-
  8       ment program and facilities plan which shall set forth the current and
  9       future space needs and utilization plans for the next five ensuing fiscal
10       years for that state agency in such form and containing such additional
11       information as prescribed by the secretary of administration.
12           (e) Except as provided in this subsection, the provisions of this section
13       do not apply to any capital improvement project for the adjutant general
14       that is funded entirely by moneys from the federal government. During
15       the month of January each year, the adjutant general shall present a report
16       to the joint committee on state building construction on all capital im-
17       provement projects that are funded entirely by moneys from the federal
18       government and that are proposed for the current and ensuing fiscal
19       years.
20           (f) The provisions of this section do not apply to any capital improve-
21       ment project for Kansas correctional industries of the department of cor-
22       rections as provided in subsection (d) of K.S.A. 75-5282, and amendments
23       thereto.
24           Sec. 2. K.S.A. 75-5281 is hereby amended to read as follows: 75-
25       5281. (a) The secretary is empowered to enter into contracts and agree-
26       ments with any person, firm or corporation upon a self-liquidating basis
27       for the acquisition   and, purchase or lease of equipment, tools, supplies
28         and, materials and buildings for manufacturing or for providing services,
29       to the end that the same may be paid for over a period of not exceeding
30         ten (10) 20 years, and the aggregate amount of such purchases or acqui-
31       sitions shall not exceed   five hundred thousand dollars ( $500,000  ) unless
32       specifically approved by the governor. All such amounts shall be payable
33       solely out of the revenues derived from the goods produced and the
34       services provided by the correctional system.
35           (b) Nothing in this section shall be so construed or interpreted as to
36       authorize or permit the incurring of a state debt of any kind or nature as
37       contemplated by the constitution of this state in relation to such debt.
38           Sec. 3. K.S.A. 75-5282 is hereby amended to read as follows: 75-
39       5282. (a) There is hereby created in the state treasury the correctional
40       industries fund.
41           (b) All moneys collected by the secretary from the sale or disposition
42       of goods manufactured and services provided under the prison-made
43       goods act shall be remitted to the state treasurer at least monthly. The

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  1       state treasurer shall deposit each such remittance in the state treasury
  2       and credit it to the correctional industries fund. All the moneys collected
  3       and deposited pursuant to this subsection shall be used solely for the
  4       purchase of manufacturing supplies, equipment and machinery, for the
  5       repair, maintenance and replacement of equipment and machinery,   and
  6       for administrative expenses and as provided in subsection (d).
  7           (c) The balance of all proceeds from the lease of agricultural land at
  8       a correctional institution, after payment of the expenses of the lease from
  9       such proceeds, shall be remitted to the state treasurer at least monthly.
10       Upon receipt of each such remittance, the state treasurer shall deposit
11       the entire amount thereof in the state treasury and such amount shall be
12       credited to the correctional industries fund.
13           (d) Any unencumbered moneys in the correctional industries fund
14       may be expended for capital improvement projects for the renovation or
15       repair of existing buildings or facilities or for the construction or acqui-
16       sition of building or facilities for correctional industries as provided in
17       K.S.A. 75-5281 and 75-5288 and amendments thereto. Such capital im-
18       provement projects shall not be subject to the requirements to prepare
19       and submit capital improvement budget estimates as provided in K.S.A.
20       75-3717b, and amendments thereto. Prior to commencement of a capital
21       improvement project, the director of Kansas correctional industries shall
22       advise and consult with the joint committee on state building construction
23       concerning such capital improvement projects.
24           Sec. 4. K.S.A. 75-5288 is hereby amended to read as follows: 75-
25       5288. (a) Notwithstanding the provisions of K.S.A. 75-3738 to 75-3744,
26       inclusive, and amendments thereto or of any other laws to the contrary,
27       the secretary of corrections may lease one or more buildings or portions
28       thereof on the grounds of any correctional institution, together with the
29       real estate needed for reasonable access to and egress from the leased
30       buildings, for a term not to exceed   twenty (20  ) years, to a private individ-
31       ual, firm, corporation or other lawful entity for the purpose of establishing
32       and operating a business enterprise for the manufacture and processing
33       of goods, wares or merchandise, or any other business or commercial
34       enterprise deemed by the secretary of corrections to be consistent with
35       the proper training and rehabilitation of inmates.
36           (b) Subject to approval by the secretary of corrections, any corpora-
37       tion operating a factory or other business or commercial enterprise under
38       this section may employ selected inmates of the correctional institution
39       upon whose grounds it operates.
40           (c) Notwithstanding the provisions of K.S.A. 75-3738 to 75-3744, in-
41       clusive, article 12 of chapter 75 of the Kansas Statutes Annotated, article
42       58 of chapter 75 of the Kansas Statutes Annotated, and amendments
43       thereto, or of any other laws to the contrary, the secretary of corrections

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  1       may enter into agreements with a private individual, firm, corporation or
  2       other lawful entity for the purpose of accepting as a donation, lease or
  3       purchase, on behalf of the state any building or renovation of a building
  4       to be used for the manufacture and processing of goods, wares or mer-
  5       chandise, or any other business or commercial enterprise deemed by the
  6       secretary of corrections to be consistent with the proper training and
  7       rehabilitation of inmates.
  8           (1) Such agreements may provide for the financing, design, construc-
  9       tion or renovation of such buildings on the grounds of correctional facil-
10       ities. The secretary may not obligate the expenditure of state funds except
11       as provided by K.S.A. 75-5281 and amendments thereto.
12           (2) Buildings constructed or renovated pursuant to this section shall
13       become the property of the state as provided by such agreements or after
14       20 years, whichever time period is shorter.
15           (d) Any business enterprise established under the provisions of this
16       section shall be deemed a private enterprise and subject to all the laws,
17       rules and regulations of this state governing the operation of similar busi-
18       ness enterprises elsewhere in this state.
19             (d) (e) The authority of the secretary of corrections over the institu-
20       tions of the department of corrections and the inmates thereof shall not
21       be diminished by this section.
22           Sec. 5. K.S.A. 75-3717b, 75-5281, 75-5282 and 75-5288 are hereby
23       repealed.
24           Sec. 6. This act shall take effect and be in force from and after its
25       publication in the statute book.
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