Kansas Statutes

Chapter 76: State Institutions And Agencies; Historical Property

Article 8: University Of Kansas Medical Education And Clinical Facilities And Personnel

Statutes:

• 76-801:
• 76-802:
• 76-803:
• 76-804:
• 76-805 to 76-807:
• 76-808:
• 76-808a:
• 76-809:
• 76-810: Legislative findings.
• 76-811: Definitions.
• 76-812: General powers of board of regents; rules and regulations.
• 76-813: Credit of state or political subdivision not pledged.
• 76-814: Execution and performance of certain contracts.
• 76-815: Revenue bonds; terms; disposition of excess funds.
• 76-816: Trust agreement.
• 76-817: Revenues and other moneys; fees, tuition, rents and charges.
• 76-818: Bond proceeds and other moneys deemed trust funds; use; investment.
• 76-819: Remedies.
• 76-820: Negotiability of bonds.
• 76-821: Bonds eligible for investment.
• 76-822: Revenue refunding bonds.
• 76-823: Exemption from taxation.
• 76-824: Statutory construction.
• 76-825: Financing of allopathic medicine postgraduate training programs; contracts with hospitals and medical groups.
• 76-826: Purchase of or reimbursement for liability insurance to cover persons engaged in postgraduate residency training program in allopathic medicine at university of Kansas medical center; contracts.
• 76-827:
• 76-828: State board of regents authorized to construct and equip a facility for care of and clinical research on animals at university of Kansas medical center.
• 76-829: Payment of costs of the project; loan of money by pooled money investment board; rate of interest on loan; animal research facility project fund created; transfer of moneys.
• 76-830: Payment and computation of repayment amounts.
• 76-831: Animal research facility debt service fund created; transfer of moneys to such fund; limitations on amounts transferred.
• 76-832: Interest attributable to moneys in animal research facility debt service fund; transfer to fund.
• 76-834: Purchase of disability insurance for medical residents and students in the school of medicine, nursing and allied health; contracts.

• 76-801:

        History:   L. 1899, ch. 12, § 1; R.S. 1923, 76-801; Repealed, L. 1951, ch. 466, § 1; June 30.

• 76-802:

        History:   L. 1899, ch. 12, § 12; R.S. 1923, 76-802; Repealed, L. 1951, ch. 466, § 1; June 30.

• 76-803:

        History:   R.S. 1923, 76-803; Repealed, L. 1951, ch. 466, § 1; June 30.

• 76-804:

        History:   L. 1923, ch. 40, § 4; R.S. 1923, 76-804; Repealed, L. 1951, ch. 466, § 1; June 30.

• 76-805 to 76-807:

        History:   L. 1901, ch. 19, §§ 1 to 3; R.S. 1923, 76-805 to 76-807; Repealed, L. 1951, ch. 466, § 1; June 30.

• 76-808:

        History:   L. 1905, ch. 29, § 3; R.S. 1923, 76-808; L. 1935, ch. 286, § 1; Repealed, L. 1951, ch. 466, § 1; June 30.

• 76-808a:

        History:   L. 1931, ch. 42, § 4; Repealed, L. 1951, ch. 466, § 1; June 30.

• 76-809:

        History:   L. 1899, ch. 12, § 8; R.S. 1923, 76-809; Repealed, L. 1951, ch. 466, § 1; June 30.

• 76-810: Legislative findings. It is hereby found and declared that the provision of additional medical education and clinical facilities as part of the university of Kansas medical center in Kansas City, Kansas, is in the public interest and will promote the health, safety and welfare of the people of the state and will both foster the training of, and attract to said medical center, additional medical and paramedical personnel urgently required to serve the needs of the people and of the state. It is further found and declared that the project authorized under this act will alleviate an acute shortage of medical school and hospital facilities at the university of Kansas medical center and that the financing of such project through the issuance of revenue bonds and the appropriation of state funds will expedite and facilitate the construction of these urgently needed facilities with substantial savings in interest and other costs.

        History:   L. 1973, ch. 380, § 1; April 25.

• 76-811: Definitions. The following words and terms, unless the context clearly indicates a different meaning, shall have the following respective meanings:

        (a)   "Act," this act as enacted by the legislature of the state;

        (b)   "board," the state board of regents as provided for in article 6, section 3 of the constitution of the state and as described in article 32 of chapter 74 of Kansas Statutes Annotated, or if said board shall be abolished, the board, body, commission or authority succeeding to the principal functions thereof or to whom the powers given by this act to the board shall be given by law;

        (c)   "bonds" or "revenue bonds," the bonds authorized to be issued under this act;

        (d)   "cost of the project," all the cost of construction, the cost of the acquisition of all property, both real and personal, the cost of demolishing or removing any structures, the cost of all machinery, furnishings, fixtures, equipment and other personal property, financing charges, interest prior to and during construction and, if determined advisable by the board, for a period not exceeding one year after completion of construction, cost of surveys, plans, engineering, architectural, fiscal and legal services, expenses necessary or incident to determining the feasibility of constructing the project, the establishment of reasonable reserves to secure the bonds, administrative and similar expenses necessary or incident to the construction of the project and issuance of the bonds;

        (e)   "current expenses" for any period, the current expenses (not capital expenditures) incurred during such period by the board in the operation, repair and maintenance of the medical center;

        (f)   "gross revenue" for any period, all income, proceeds and receipts derived by the board during such period from its ownership, operation or use of, or the services rendered by, the medical center together with the project, including but not limited to rents, tuition, fees, charges, payments for hospital, medical or other services, proceeds of insurance, condemnation awards and sales of property including drugs, medicines and supplies, and also such donations, grants, bequests, gifts and legislative appropriations and other receipts and moneys as may be lawfully made available therefor;

        (g)   "medical center" or "university of Kansas medical center," the facility and plant of the university of Kansas located in Kansas City, Kansas, commonly known as the medical center, as now constituted and as hereinafter increased in scope by the project and other improvements and after-acquired property, including all of the land, buildings, structures, facilities, equipment and other real and personal property thereof;

        (h)   "net revenue" for any period, the amount of the gross revenue for such period in excess of the current expenses for such period;

        (i)   "project," additions and improvements to the medical center, comprising a basic science building, a clinical facility addition and the renovation and remodeling of existing facilities and including, among other facilities, buildings, land and interests in land, streets, rights-of-way, parking lots and other parking facilities, structures, fixtures, utilities, machinery, equipment, furnishings, classrooms, laboratories, kitchen and dining facilities, landscaping and appurtenances, as determined by the board;

        (j)   "state," the state of Kansas.

        History:   L. 1973, ch. 380, § 2; April 25.

• 76-812: General powers of board of regents; rules and regulations. The board shall have all of the powers necessary or convenient to carry out and effectuate the purposes and provisions of this act, including, but without limiting the generality of the foregoing, the power with respect to the project;

        (a)   to adopt rules and regulations and prescribe policies in connection with the performance of its functions and duties under this act;

        (b)   to receive, administer, use, apply and comply with conditions and requirements respecting any gift, grant or donation of any property or money from any source, whether federal, state or private;

        (c)   to make and execute contracts and other instruments necessary or convenient in the exercise of its powers and functions under this act, payable from funds then available or to be lawfully made available pursuant to the provisions of this act, including contracts with persons, firms, corporations, federal and state agencies and officers and other local agencies, which state agencies and officers and other local public agencies are hereby authorized to enter into contracts and otherwise cooperate with the board to facilitate the financing, construction and operation of the project;

        (d)   to acquire by purchase, lease, gift, eminent domain or otherwise, or to obtain options for the acquisition of, any property, real or personal, improved or unimproved, for the construction, operation or maintenance of the project;

        (e)   to sell, lease, exchange, transfer or otherwise dispose of, or to grant options for any such purposes with respect to, any real or personal property or interest therein constituting part of the medical center including the project;

        (f)   to pledge or assign any tuition, rents, charges, fees or other revenues, any proceeds derived from sales of property, insurance or condemnation awards or other receipts and moneys available therefor derived by the board in connection with the medical center, including the project;

        (g)   to issue revenue bonds of the board for the purpose of providing funds to pay all or any part of the cost of the project, and to issue revenue refunding bonds;

        (h)   to construct, acquire, own, repair, maintain, extend, improve, rehabilitate, renovate, furnish and equip the project and to pay all or any part of the cost thereof from the proceeds of bonds of the board or from any contribution, grant, gift or donation or other funds available to it for such purpose;

        (i)   to fix, charge and collect rents, tuition, fees and charges for the use of, or services rendered by, the medical center, including the project; and

        (j)   to contract for the services of consulting engineers, architects, attorneys, real estate counselors, appraisers, fiscal advisers and such other consultants as may be required in the judgment of the board and to pay for the same from funds available to the board therefor.

        History:   L. 1973, ch. 380, § 3; April 25.

• 76-813: Credit of state or political subdivision not pledged. Bonds issued under the provisions of this act shall not be deemed to constitute a debt, liability or obligation of the state or of any political subdivision thereof or a pledge of the faith and credit of the state or of any such political subdivision, but shall be payable solely from the revenues, proceeds and other funds provided therefor. Each bond issued under this act shall contain on the face thereof a statement to the effect that the board shall not be obligated to pay the same nor the interest thereon except from the revenues, proceeds and other funds pledged therefor and that neither the faith and credit nor the taxing power of the state or of any political subdivision thereof is pledged to the payment of the principal of or the interest on such bonds.

        Expenses incurred by the board in carrying out the provisions of this act may be made payable from funds then available or to be lawfully made available pursuant to the provisions of this act and no liability or obligation shall be incurred by the board hereunder beyond such extent.

        History:   L. 1973, ch. 380, § 4; April 25.

• 76-814: Execution and performance of certain contracts. Notwithstanding any other provisions of law, the director of accounts and reports and the secretary of administration are hereby authorized and empowered at any time after the effective date of this act to execute, cause to be performed and to inspect and supervise the performance of contracts for the construction of the project, including contracts for construction work and the acquisition of supplies, machinery, equipment, fixtures, other real or personal property, professional or other services, landscaping or other purposes. Each of such contracts shall be executed for and in the name of the board but only upon the approval of such contract by the board or its authorized officer or designee and shall be deemed to be the contract of the board payable from funds then available or to be lawfully made available pursuant to the provisions of this act.

        History:   L. 1973, ch. 380, § 5; L. 1978, ch. 337, § 38; Sept. 1.

• 76-815: Revenue bonds; terms; disposition of excess funds. (a) The board is hereby authorized to provide for the issuance, from time to time, of revenue bonds of the board in an aggregate principal amount not exceeding $22,000,000 for the purpose of paying all or any part of the cost of the project. The principal of and the interest on the bonds shall be payable solely from the funds herein provided for such payment. The bonds shall be dated, shall bear interest at a rate not to exceed the maximum rate prescribed by K.S.A. 10-1009, and amendments thereto, shall mature at such time not exceeding 20 years from their date, as may be determined by the board, and may be made redeemable before maturity, at the option of the board, at such price and under such terms and conditions fixed by the board prior to the issuance of the bonds. The board shall determine the form and the manner of execution of the bonds, including any interest coupons to be attached thereto, and shall fix the denomination of the bonds and the place of payment of principal and interest, which may be at the office of the state treasurer as fiscal agent of the state, or at any bank or trust company within or without the state. In case any officer whose signature or a facsimile of whose signature appears on any bonds or coupons ceases to be such officer before the delivery of such bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. The board may also provide for the authentication of the bonds by a trustee or fiscal agent. The bonds may be issued in coupon or in registered form, or both, as the board determines, and provision may be made for the registration of any coupon bonds as to both principal and interest, and for the reconversion into coupon bonds of any bonds registered as to both principal and interest and for the interchange of registered and coupon bonds. The board may sell such bonds in such manner, and upon such terms as it determines to be in the public interest and advantageous to the medical center and the state, at public sale at not less than par and accrued interest by competitive bidding, with sealed proposals, after the notice provided in K.S.A. 10-106, and amendments thereto. Any and all bids may be rejected. If no bid acceptable to the board is received, the board may sell the bonds without competitive bidding at private sale in such manner and upon such terms and conditions the board determines will be in the public interest and advantageous to and for the best interests of the medical center and the state.

        (b)   The proceeds of the bonds, except such as may be made available to secure or pay bonds, shall be used solely for the payment of the cost of the project or portion thereof for which such bonds have been issued, and shall be disbursed in such manner and under such restrictions, if any, as the board provides in the resolution authorizing the issuance of such bonds or in the trust agreement securing the same. If the proceeds of the bonds, by reason of increased construction costs or error in estimates or otherwise, shall be less than such cost, additional bonds, not exceeding with other bonds issued hereunder the maximum amount authorized to be issued, may in like manner be issued to provide the amount of such deficiency, and, unless otherwise provided in the bond resolution or in the trust agreement, shall be deemed to be of the same issue and shall be entitled to payment from the same fund without preference or priority of the bonds first issued. If the proceeds of the bonds of any issue exceed such cost, such excess shall be deposited to the credit of the sinking fund for such bonds, or if provided in such resolution or trust agreement, may be deposited to the credit of any reserve fund established to secure the bonds.

        (c)   Prior to the preparation of definitive bonds, the board may, under like restrictions, issue interim financing receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when such bonds have been executed and are available for delivery. The board also may provide for the replacement of any bonds which are mutilated or are destroyed or lost.

        (d)   Bonds may be issued under the provisions of this act without obtaining, except as otherwise expressly provided in this act, the consent of any department, division, commission, board, body, bureau or agency of the state, and without any other proceedings or the happening of any conditions or things other than those proceedings, conditions or things which are specifically required by this act and the provisions of the resolution authorizing the issuance of such bonds or the trust agreement securing the same.

        History:   L. 1973, ch. 380, § 6; L. 1983, ch. 49, § 97; May 12.

• 76-816: Trust agreement. In the discretion of the board, any bonds issued under the provisions of this act may be secured by a trust agreement by and between the board and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the state. Such trust agreement or the resolution providing for the issuance of such bonds may pledge or assign all or any part of the gross or net revenues, proceeds and receipts derived from the ownership, operation or use of, or services rendered by, the medical center, together with the project, and including fees, tuition, rents, charges, other revenues, proceeds from the sale of any property, insurance proceeds, condemnation awards, appropriated funds and other moneys to be received and available therefor, but shall not convey or mortgage the medical center or the project. Any trust agreement or resolution providing for the issuance of bonds may contain such provisions for protecting and enforcing the rights and remedies of the holders of the bonds as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the board in relation to the acquisition of property and the construction, improvement, maintenance, repair, operation and insurance of the medical center together with the project, the fees, tuition, rents and other charges to be fixed and collected, the sale of any property, the terms and conditions for the issuance of additional bonds, the continued operation of the medical center together with the project, until payment of all the bonds, and the custody, safeguarding, investment and application of all moneys received from the sale of the bonds as well as all moneys pledged by the board to secure the payment of the bonds and the interest thereon. It shall be lawful for any bank or trust company incorporated under the laws of the state which may act as depository of the proceeds of bonds, revenues or other money hereunder to furnish such indemnifying bonds or to pledge such securities as may be required by the board. Any such trust agreement or resolution may set forth the rights and remedies of the bondholders and of the trustee, and may restrict the individual right of action by bondholders. In addition to the foregoing, any such trust agreement or resolution may contain such other provisions as the board may deem desirable and proper for the security of the bondholders. All expenses incurred in carrying out the provisions of such trust agreement or resolution may be treated as a part of the cost of the project or as an expense of administration of the medical center together with the project, as the case may be.

        History:   L. 1973, ch. 380, § 7; April 25.

• 76-817: Revenues and other moneys; fees, tuition, rents and charges. (a) Subject to K.S.A. 76-742, the board is hereby authorized to fix, revise, charge and collect fees, tuition, rents and charges for the use of, or the services rendered by, the medical center together with the project, or any part thereof.

        (b)   The fees, tuition, rents and charges shall be so fixed and adjusted as to provide funds sufficient, with such other moneys as may be made available therefor, to pay the principal of and the interest on the bonds as the same shall become due and payable, to create and maintain reserves for such purposes, and to pay the cost of operation, repair and maintenance of the medical center together with the project to the extent other funds are not available therefor. All or any part of the fees, tuition, rents and charges and all or any part of the gross or net revenues, proceeds and receipts derived from the medical center together with the project, except such part thereof as may be necessary for such reserves or any expenditures as may be provided in the resolution authorizing the issuance of such bonds or in the trust agreement securing the same, shall be set aside at such regular intervals as may be specified in such resolution or such trust agreement in a sinking fund which is hereby pledged to and charged with the payment of the principal of and the interest on such bonds as the same shall become due and the redemption price or the purchase price of bonds retired by call or purchase as therein provided. Such pledge shall be valid and binding from the time when the pledge is made. The fees, tuition, rents, charges and other revenues, proceeds, receipts and other moneys so pledged and thereinafter received by the board shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the board, irrespective of whether such parties have notice thereof. Neither the resolution nor any trust agreement by which a pledge is created need be filed or recorded except in the records of the board. The use and disposition of money to the credit of such sinking fund and any reserve fund or funds established in the resolution authorizing the issuance of such bonds or in such trust agreement shall be subject to the provisions of such resolution or of such trust agreement. Except as may otherwise be provided in such resolution or such trust agreement, such sinking fund and any such reserve fund or funds shall be a fund for all such bonds without distinction or priority of one over another.

        History:   L. 1973, ch. 380, § 8; L. 1982, ch. 379, § 3; July 1.

• 76-818: Bond proceeds and other moneys deemed trust funds; use; investment. All funds received pursuant to the provisions of this act, whether as proceeds from the sale of bonds, sale of property, insurance or condemnation awards, as revenues, proceeds or otherwise, shall be deemed to be trust funds to be held and applied solely as provided in this act and as provided in the resolution authorizing the issuance of the bonds or the trust agreement. The resolution of the board authorizing the issuance of the bonds or the trust agreement securing any bonds may provide that any of such moneys, including the proceeds of the bonds, the sinking fund and any reserve account or accounts, may be invested by the director of investments in accordance with investment policies established by the pooled money investment board under K.S.A. 75-4232, and amendments thereto, pending the disbursement thereof, in: (a) investments enumerated in K.S.A. 10-131, and amendments thereto; or (b) the pooled money investment portfolio.

        Whenever such moneys are invested in interest-bearing deposits in any commercial bank, such deposits shall be secured by pledge of securities as provided in K.S.A. 75-4218, and amendments thereto.

        History:   L. 1973, ch. 380, § 9; L. 1976, ch. 386, § 6; L. 1987, ch. 295, § 14; L. 1989, ch. 48, § 100; L. 1996, ch. 254, § 31; May 23.

• 76-819: Remedies. Any holder of bonds issued under the provisions of this act or any of the coupons appertaining thereto, and the trustee under any trust agreement, except to the extent the rights herein given may be restricted by such trust agreement or the resolution authorizing the issuance of such bonds, may, either at law or in equity, by suit, action, mandamus or other proceeding, protect and enforce any and all rights under the laws of the state or granted hereunder or under such trust agreement or resolution authorizing the issuance of such bonds, or under any contract executed by or for the board pursuant to this act or by such trust agreement performance of all duties required by this act or by such trust agreement or resolution to be performed by the board or by any officer thereof.

        History:   L. 1973, ch. 380, § 10; April 25.

• 76-820: Negotiability of bonds. All bonds issued under the provisions of this act shall have and are hereby declared to have all the qualities and incidents, including negotiability, of investment securities under the uniform commercial code of the state but no provision of such code respecting the filing of a financing statement to perfect a security interest shall be deemed necessary for or applicable to any security interest created in connection with the issuance of any such bonds.

        History:   L. 1973, ch. 380, § 11; April 25.

• 76-821: Bonds eligible for investment. Bonds issued by the board under the provisions of this act are hereby made securities in which all public officers and public bodies of the state and its political subdivisions, all insurance companies, trust companies, banking associations, investment companies, executors, administrators, trustees and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them. Such bonds are hereby made securities which may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the state for any purpose for which the deposit of bonds or obligations of the state is now or may hereafter be authorized by law.

        History:   L. 1973, ch. 380, § 12; April 25.

• 76-822: Revenue refunding bonds. The board is authorized to provide by resolution for the issuance of revenue refunding bonds of the board for the purpose of refunding any bonds then outstanding which shall have been issued under the provisions of this act, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of such bonds. The issuance of the refunding bonds, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties and obligations of the board in respect of the same, shall be governed by the provisions of this act insofar as the same may be reasonably made applicable to such refunding bonds in the determination of the board.

        History:   L. 1973, ch. 380, § 13; April 25.

• 76-823: Exemption from taxation. The exercise of the powers granted under this act will be in all respects for the benefit of the people of the state, for the increase of their commerce and prosperity and for the improvement of their health and living conditions, and as the operation and maintenance of the medical center with the project by the board will constitute the performance of an essential governmental function, the board shall not be required to pay any taxes or assessments upon any of its property constituting a part of the medical center or the project levied by the state or by any municipality, county, political subdivision or other public agency of the state, and any bonds issued under this act, their transfer and the income therefrom (including any profit made on the sale thereof) shall at all times be free from taxation, except inheritance taxes, by the state and any municipality, county, political subdivision or other public agency of the state.

        History:   L. 1973, ch. 380, § 14; April 25.

• 76-824: Statutory construction. This act, being necessary for the prosperity and welfare of the state and its inhabitants, shall be liberally construed to effect the purposes thereof. The provisions of this act are severable, and if any of its provisions shall be held unconstitutional by any court of competent jurisdiction, the decision of such court shall not affect or impair any of the remaining provisions. Insofar as the provisions of this act are inconsistent with the provisions of any general or special laws, or parts thereof, the provisions of this act shall be controlling.

        History:   L. 1973, ch. 380, § 15; April 25.

• 76-825: Financing of allopathic medicine postgraduate training programs; contracts with hospitals and medical groups. The university of Kansas medical center may finance or assist in the financing of postgraduate training programs in allopathic medicine and may provide financial assistance to persons engaged in such postgraduate training programs. The university of Kansas medical center may contract with one or more hospitals or one or more medical groups, or both, in Kansas. Contracts under this section shall provide that the hospital or medical group provide postgraduate training in allopathic medicine and that the university of Kansas medical center shall pay specific amounts from appropriations to be used in financing such postgraduate training, including stipends, compensation and expenses related thereto. The stipends and other financing provided for under this section are intended to improve medical education in Kansas and to encourage retention of physicians in Kansas. Contracts under this section shall be executed for the university of Kansas medical center by the chancellor of the university of Kansas or the chancellor's designee.

        History:   L. 1973, ch. 375, § 1; L. 1982, ch. 381, § 2; July 1.

• 76-826: Purchase of or reimbursement for liability insurance to cover persons engaged in postgraduate residency training program in allopathic medicine at university of Kansas medical center; contracts. Within the limitations of appropriations therefor, the university of Kansas medical center may purchase or may reimburse a private practice medical association at the university of Kansas medical center for the purchase of liability insurance, by speciality, for any person who is or will be engaged in a postgraduate residency training program in allopathic medicine at the university of Kansas medical center for any liability for injuries or damages resulting from any act or omission of any such person while engaged in such program. Contracts under this section shall be executed for the university of Kansas medical center by the chancellor of the university of Kansas or the chancellor's designee.

        History:   L. 1978, ch. 359, § 2; July 1.

• 76-827:

        History:   L. 1980, ch. 25, § 1; Repealed, L. 1994, ch. 184, § 1; July 1.

• 76-828: State board of regents authorized to construct and equip a facility for care of and clinical research on animals at university of Kansas medical center. In accordance with the provisions of this act and within the limitations of appropriations therefor, the state board of regents is hereby authorized to construct and equip a facility for the care of and clinical research on animals at the university of Kansas medical center.

        History:   L. 1986, ch. 353, § 1; May 22.

• 76-829: Payment of costs of the project; loan of money by pooled money investment board; rate of interest on loan; animal research facility project fund created; transfer of moneys. (a) To provide for the payment of the costs of the capital improvement project to construct and equip a facility for the care of and clinical research on animals at the university of Kansas medical center, and expenses related thereto, the pooled money investment board is authorized and directed to loan to the state board of regents sufficient funds therefor in an amount which shall not exceed $4,300,000. The pooled money investment board is authorized and directed to use any moneys in the operating accounts, investment accounts or other investments, of the state of Kansas to provide funds for such loan. The rate of interest shall be fixed on January 1 of each year at a rate equal to the average yield before taxes received on 91-day United States treasury bills as determined by the federal reserve banks as fiscal agents of the United States at its most recent public offering of such bills in effect on such date. The loan principal and interest thereon shall be payable solely from moneys credited to and available in the animal research facility debt service fund or as otherwise provided by law. Such loan shall not be deemed to be an indebtedness or debt of the state of Kansas within the meaning of section 6 of article 11 of the constitution of the state of Kansas.

        (b)   There is hereby created in the state treasury the animal research facility project fund. On the loan date, the pooled money investment board shall transfer the loan amount from the state bank accounts described in subsection (a) to the animal research facility project fund. All expenditures from the animal research facility project fund shall be for payment of the costs of the capital improvement project to construct and equip a facility for the care of and clinical research on animals at the university of Kansas medical center and expenses related thereto, in accordance with the provisions of appropriations acts.

        (c)   On the effective date of this act, the director of accounts and reports shall transfer all moneys in the hospital construction revenue bonds refinancing proceeds fund to the animal research facility project fund.

        (d)   After completion of the capital improvement project to construct and equip a facility for the care of and clinical research on animals at the university of Kansas medical center and the payment of the costs thereof and expenses related thereto, the chancellor of the university of Kansas shall certify the same to the director of accounts and reports. Upon receipt of such certification, the director of accounts and reports shall transfer any remaining moneys in the animal research facility project fund to the animal research facility debt service fund.

        History:   L. 1986, ch. 353, § 2; L. 1992, ch. 146, § 22; July 1.

• 76-830: Payment and computation of repayment amounts. Commencing on the first day of the 24th month commencing after the loan date, the principal and interest of such loan amounts shall be repaid in payments payable annually over a period of 20 years. The repayment amounts shall be recomputed each year to reflect the interest rate prescribed by K.S.A. 76-829 and amendments thereto and shall be calculated each year on a substantially level payment basis based on a total original amortization period of 20 years.

        History:   L. 1986, ch. 353, § 3; L. 1987, ch. 359, § 2; July 1.

• 76-831: Animal research facility debt service fund created; transfer of moneys to such fund; limitations on amounts transferred. (a) There is hereby created in the state treasury the animal research facility debt service fund. All expenditures from the animal research facility debt service fund shall be to repay the principal and interest on the loan authorized by K.S.A. 76-829 in the manner prescribed by this act and in accordance with the provisions of appropriations acts.

        (b)   Subject to the provisions of subsection (d), the director of accounts and reports shall transfer the following amounts on the following dates from the state general fund to the animal research facility debt service fund:

        (1)   On July 1, 1987, the amount of $250,000;

        (2)   on July 1, 1988, the amount of $250,000; and

        (3)   on July 1, 1989, the amount of $250,000; and

        (4)   on July 1, 1990, the amount of $250,000.

        (c)   From time to time during the term of the loan authorized by K.S.A. 76-829, the chancellor of the university of Kansas shall transfer in accordance with this subsection amounts from moneys appropriated and available to the university of Kansas medical center to the animal research facility debt service fund for the purposes of providing funds to repay the principal and interest on the loan authorized by K.S.A. 76-829. Upon the request of the chancellor, the director of accounts and reports shall transfer amounts from appropriations in accounts of the state general fund and in special revenue funds for the university of Kansas medical center as specified by the chancellor on the dates specified by the chancellor. All such transfers from special revenue funds shall be within and subject to existing expenditure limitations. No transfers shall be made under this subsection from any specific appropriations from the state general fund for operating expenditures for utilities or as may otherwise be restricted, limited or prohibited by law.

        (d)   The amount equal to the total of (1) the amount of moneys transferred to the animal research facility project fund under subsection (c) of K.S.A. 76-829 and (2) the amount of moneys transferred to the animal research facility debt service fund under subsection (b) of this section, shall not exceed the amount equal to 1/2 of the total actual cost of the capital improvement project described in K.S.A. 76-829. Prior to making any transfer prescribed under subsection (b) of this section, if the director of accounts and reports determines that to transfer the full amount prescribed under subsection (b) would violate the provisions of this subsection (d), the director shall proportionally reduce the amounts remaining to be transferred under subsection (b) accordingly and thereafter shall transfer such reduced amounts in accordance with subsection (b).

        History:   L. 1986, ch. 353, § 4; May 22.

• 76-832: Interest attributable to moneys in animal research facility debt service fund; transfer to fund. On or before the 10th of each month, the director of accounts and reports shall transfer from the state general fund to the animal research facility debt service fund interest earnings based on:

        (a)   The average daily balance of moneys in the animal research facility project fund and the animal research facility debt service fund for the preceding month; and

        (b)   the net earnings rate for the pooled money investment portfolio for the preceding month.

        History:   L. 1986, ch. 353, § 5; L. 1996, ch. 253, § 35; May 23.

• 76-834: Purchase of disability insurance for medical residents and students in the school of medicine, nursing and allied health; contracts. Within the limitations of appropriations therefor, the university of Kansas medical center may purchase disability insurance for medical residents and students in the school of medicine, nursing and allied health. Contracts under this section shall be executed for the university of Kansas medical center by the chancellor of the university of Kansas or the chancellor's designee.

        History:   L. 1998, ch. 26, § 1; July 1.