CHAPTER 149 HOUSE BILL No. 3031
      An Act concerning the Kansas economic opportunity initiatives fund; amending K.S.A. 1997
      Supp. 74-50,151 and repealing the existing section; also repealing K.S.A. 1997 Supp. 74-
      50,151a.

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

Section 1. K.S.A. 1997 Supp. 74-50,151 is hereby amended to read
as follows: 74-50,151. (a) There is hereby created in the state treasury the
Kansas economic opportunity initiatives fund. Subject to acts of the leg-
islature applicable thereto, the moneys in the Kansas economic oppor-
tunity initiatives fund shall be used only for the purposes prescribed by
this section.

(b) All expenditures made pursuant to this act shall be made in ac-
cordance with appropriations acts upon warrants of the director of ac-
counts and reports issued pursuant to vouchers approved by the governor
or the governor's designee. The governor may approve a warrant upon
certification, by the secretary of commerce and housing, that an economic
emergency or unique opportunity exists which warrant funding for a stra-
tegic economic intervention by such state agency or agencies to address
expenses involved in securing economic benefits or avoiding or remedying
economic losses related to:

(1) A major expansion of an existing Kansas commercial enterprise;

(2) the potential location in Kansas of the operations of a major em-
ployer;

(3) the award of a significant federal or private sector grant which has
a financial matching requirement;

(4) the departure from Kansas or the substantial reduction of the
operations of a major employer; and

(5) the closure of a major federal or state institution or facility.

(c) An intervention strategy may include financial assistance in the
form of grants, loans or both. The department of commerce and housing
shall adopt written guidelines concerning the terms and conditions of any
such loans. However, all repaid funds shall be credited to the Kansas
economic opportunity initiatives fund. No intervention strategy approved
pursuant to this act shall facilitate the moving of an existing Kansas firm
to another location within the state unless such restriction is waived by
the secretary of commerce and housing. Every intervention strategy ap-
proved pursuant to this act shall identify the intended outcomes to be
realized by the strategy for which funding is sought.

(d) The department of commerce and housing and Kansas, Inc. shall
make joint findings concerning the costs and benefits, on both a local and
statewide basis, of projects proposed pursuant to this act. Prior to allo-
cation of any funds pursuant to this act, the governor shall review the
cost-benefit findings performed on each project.

(e) The director of the budget and the director of the legislative re-
search department shall consult periodically and review the balance cred-
ited to and the estimated receipts to be credited to the state economic
development initiatives fund during the fiscal year. During any period
when the legislature is not in session, upon a finding by the director of
the budget in consultation with the director of the legislative research
department that the total of the unencumbered balance and estimated
receipts to be credited to the state economic development initiatives fund
during a fiscal year are insufficient to fund the budgeted expenditures
and transfers from the state economic development initiatives fund for
the fiscal year in accordance with the provisions of appropriation acts, the
director of the budget shall make a certification of such finding to the
governor. Upon approval by the governor, the director of accounts and
reports shall transfer the amount of moneys from the Kansas economic
opportunity initiatives fund to the state economic development initiatives
fund that is required, in accordance with a certification by the director
of the budget under this subsection, to fund the budgeted expenditures
and transfers from the state economic development initiatives fund for
the fiscal year in accordance with the provisions of appropriation acts, as
specified by the director of the budget pursuant to such certification.

(f) On or before the 10th day of each month, the director of accounts
and reports shall transfer from the state general fund to the state eco-
nomic development initiatives fund the amount of money certified by the
pooled money investment board in accordance with this section. Prior to
the 10th day of each month, the pooled money investment board shall
certify to the director of accounts and reports the amount of money equal
to the proportionate amount of all the interest credited to the state gen-
eral fund for the preceding month, pursuant to K.S.A. 75-4210a and
amendments thereto, that is attributable to moneys in the Kansas eco-
nomic opportunity initiatives fund. Such amount of money shall be de-
termined by the pooled money investment board interest earnings based
on:

(1) The average daily balance of moneys in the Kansas economic op-
portunity initiatives fund during the preceding month as certified to the
board by the director of accounts and reports for the preceding month;
and

(2) the average interest rate on repurchase agreements of less than
30 days duration entered into by the pooled money investment board for
that period of time. On or before the fifth day of each month, the director
of accounts and reports shall certify to the pooled money investment
board the average daily balance of moneys in the Kansas economic op-
portunity initiatives fund during the net earnings rate for the pooled
money investment portfolio for the preceding month.

(g) A five member panel consisting of the secretary of commerce and
housing, the president of Kansas, Inc., the president of the Kansas tech-
nology enterprise corporation, the private sector chairperson of the board
of Kansas, Inc. and the private sector chairperson of the Kansas technol-
ogy enterprise corporation shall review annually the propriety of projects
funded under this section. The panel shall report its findings to the gov-
ernor.

Sec. 2. K.S.A. 1997 Supp. 74-50,151 and 74-50,151a are hereby re-
pealed.

Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.

Approved May 11, 1998

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