Session Law

Identifying Information:L. 2003 ch. 081
Other Identifying Information:2003 House Bill 2018*
Tax Type:Property Tax
Brief Description:An Act concerning electricity; providing for the organization of cooperative corporations to generate electricity from renewable resources and technologies and to transmit and sell such electricity at wholesale; authorizing issuance of bonds for certain purposes.
Keywords:


Body:

CHAPTER 81

HOUSE BILL No. 2018*


An Act concerning electricity; providing for the organization of cooperative corporations

to generate electricity from renewable resources and technologies and to transmit and


sell such electricity at wholesale; authorizing issuance of bonds for certain purposes.


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

Section 1. Sections 1 through 30, and amendments thereto, may be

cited as the renewable energy electric generation cooperative act.

Sec. 2. As used in the renewable energy electric generation coop-

erative act:

(a) ``Cooperative'' means any corporation organized under the renew-

able energy electric generation cooperative act or which becomes subject

to the renewable energy electric generation cooperative act in the manner

hereinafter provided.

(b) ``Person'' means any natural person, firm, association, corporation,

limited liability company, business trust or partnership.

(c) ``Renewable attributes'' has the meaning provided in K.S.A. 66-

1,184a, and amendments thereto.

(d) ``Renewable resources or technologies'' means wind, solar, ther-

mal, photovoltaic, biomass, hydropower, geothermal, waste incineration

and landfill gas resources or technologies.

Sec. 3. Five or more persons may organize a cooperative, nonprofit,

membership corporation under the provisions of the renewable energy

electric generation cooperative act for the purposes of conducting or pro-

moting any lawful business under the general corporation laws of the

state, generating electricity from renewable resources and technologies

and transmitting and selling such electricity at wholesale.

Sec. 4. (a) In addition to the powers conferred on all corporations

under article 61 of chapter 17 of the Kansas Statutes Annotated, a co-

operative organized under the renewable energy electric generation co-

operative act shall have power to:

(1) Sue and be sued in its corporate name;

(2) have perpetual existence;

(3) adopt a corporate seal and alter the same;

(4) generate, either as the cooperative or as individual members of

the cooperative, electricity from renewable resources or technologies and

transmit and sell such electricity at wholesale;

(5) sell renewable attributes of the cooperative or of members of the

cooperative;

(6) construct, purchase, lease, equip, maintain and operate, and to

sell, assign, convey, lease, mortgage, pledge or encumber electric trans-

mission lines or systems, electric generating plants, and lands, buildings,

structures, easements and rights-of-way and equipment, and any other

real or personal property, tangible or intangible, necessary to accomplish

the purpose for which the cooperative may be organized hereunder;

(7) purchase, lease as lessee or otherwise acquire, and use, and ex-

ercise and to sell, assign, convey, mortgage, pledge or otherwise dispose

of or encumber, franchises, rights, privileges, licenses and easements;

(8) borrow money and otherwise contract indebtedness, and to issue

notes, bonds and other evidences of indebtedness, and to secure the pay-

ment thereof by mortgage, pledge, or deed of trust of, or any other en-

cumbrance upon, any or all of its then-owned or after-acquired real or

personal property, assets, franchises, revenues or income;

(9) construct, maintain and operate electric transmission lines along,

upon, under and across publicly owned lands and public thoroughfares,

roads, highways, streets, alleys, bridges and causeways in conformity with

the laws of the state of Kansas;

(10) become an incorporator, promoter, manager, member, stock-

holder or owner of other corporations or cooperatives, and conduct its

business and exercise its powers within this state and to participate with

other persons in any corporation, limited liability company, cooperative,

partnership, limited partnership, joint venture or other association of any

kind, or in any transaction, undertaking or arrangement which the par-

ticipating person would have power to conduct by itself, whether or not

such participation involves sharing or delegation of control with or to

others;

(11) adopt, amend and repeal bylaws; and

(12) do and perform any other acts and things, and to have and ex-

ercise any other powers which may be necessary, to accomplish the pur-

pose for which the cooperative is organized.

(b) No cooperative organized under the renewable energy electric

generation cooperative act nor any member of such cooperative shall:

(1) Enter into any contract for parallel generation services pursuant

to K.S.A. 66-1,184, and amendments thereto, with regard to power gen-

erated by such cooperative or member from renewable resources;

(2) sell electricity at retail or have a certificated territory in this state;

(3) transfer or distribute electricity to any other member of the co-

operative; or

(4) resell electricity provided to the cooperative or member by the

cooperative's or member's provider of last resort.

Sec. 5. The name of an electric generation cooperative organized

under the renewable energy electric generation cooperative act shall in-

clude the words ``renewable,'' ``generation'' and ``cooperative'' and the

abbreviation ``Inc.''. The name of an electric generation cooperative shall

be distinct from the name of any other cooperative or corporation organ-

ized under the laws of, or authorized to do business in, this state. Only a

cooperative doing business in this state pursuant to the renewable energy

electric generation cooperative act shall use all of the following words in

its name: ``Renewable,'' ``generation'' and ``cooperative.''

Sec. 6. (a) The articles of incorporation of a cooperative organized

under the renewable energy electric generation cooperative act shall re-

cite that they are executed pursuant to the renewable energy electric

generation cooperative act and shall state:

(1) The name of the cooperative;

(2) the address of its principal office;

(3) the names and addresses of the incorporators;

(4) the names and addresses of its directors; and

(5) the purposes for which it is organized.

(b) The articles of incorporation of a cooperative organized under the

renewable energy electric generation cooperative act may contain any

provisions, not inconsistent with the renewable energy electric generation

cooperative act, which are deemed necessary or advisable for the conduct

of the business of the cooperative.

(c) The articles of incorporation shall be signed by each incorporator.

Sec. 7. The board of directors shall adopt the first bylaws of a co-

operative to be adopted following an incorporation, conversion, merger

or consolidation. Thereafter the members shall adopt, amend or repeal

the bylaws by the affirmative vote of a majority of those members voting

thereon at a meeting of the members. The bylaws shall set forth the rights

and duties of members and directors and may contain other provisions

for the regulation and management of the affairs of the cooperative not

inconsistent with the renewable energy electric generation cooperative

act or with the cooperative's articles of incorporation.

Sec. 8. Each incorporator of a cooperative shall be a member

thereof. No person shall become a member of the cooperative unless such

person operates generation facilities which use renewable resources and

have a capacity of at least 100 kilowatts and agrees to generate electricity

using such facilities and: (a) Transmit and sell at wholesale through the

cooperative any such electricity in excess of that used by the person; (b)

sell through the cooperative renewable attributes; or (c) both. Any mem-

ber of a cooperative who so agrees shall cease to be a member of the

cooperative if such member does not comply with the terms of the agree-

ment within two years after such person becomes a member, or such

lesser period as the bylaws of the cooperative may provide. A husband

and wife may hold a joint membership in a cooperative. Membership in

a cooperative shall not be transferable, except as provided in the bylaws.

The bylaws may prescribe additional qualifications and limitations in re-

spect of membership.

Sec. 9. (a) An annual meeting of the members of a cooperative shall

be held at such time and place as shall be provided in the bylaws of the

cooperative.

(b) Special meetings of the members may be called by the president,

by the board of directors, by any three directors or by not less than 10%

of the members.

(c) Except as otherwise provided in the renewable energy electric

generation cooperative act, written or printed notice stating the time and

place of each meeting of the members and, in the case of a special meet-

ing, the purpose or purposes for which the meeting is called, shall be

given to each member, either personally or by mail, not less than 10 days

nor more than 35 days before the date of the meeting. If mailed, such

notice shall be deemed to be given when deposited in the United States

mail, with postage prepaid, addressed to the member at the member's

address as it appears on the records of the cooperative.

(d) Unless the bylaws prescribe the presence of a greater percentage

or number of the members for a quorum, a quorum for the transaction

of business at all meetings of the members of a cooperative shall be 5%

of all members, who must be present in person. If less than a quorum is

present at any meeting, a majority of those present in person may adjourn

the meeting without further notice.

(e) Each member shall be entitled to one vote on each matter sub-

mitted to a vote at a meeting of the members. Voting shall be in person

but, if the bylaws so provide, may also be by proxy or by mail, or both. If

the bylaws provide for voting by proxy or by mail, they shall also prescribe

the conditions under which voting shall be permitted. No person shall

vote as proxy more than three members at any meeting of the members.

Sec. 10. Any person entitled to notice of a meeting may waive such

notice in writing either before or after such meeting. If any such person

shall attend such meeting, such attendance shall constitute a waiver of

notice of such meeting unless such person participates therein solely to

object to the transaction of any business because the meeting has not

been legally called or convened.

Sec. 11. (a) The business of a cooperative shall be managed by a

board of not less than five directors, each of whom shall be a member of

the cooperative. The bylaws shall prescribe the number of directors, their

qualifications, other than those prescribed in the renewable energy elec-

tric generation cooperative act, the manner of holding meetings of the

board of directors and of electing successors to directors who resign, die

or are otherwise incapable of acting as a director. The bylaws may also

provide for the removal of directors from office and for the election of

their successors. Directors shall not receive any salary for their services

as directors and, except in emergencies, shall not be employed by the

cooperative in any capacity involving compensation without the approval

of the members. The bylaws may provide that a fixed fee and expenses

of attendance may be allowed to each director for attendance at each

meeting of the board of directors and for other functions duly authorized

for and on behalf of the cooperative.

(b) The directors of a cooperative named in any articles of incorpo-

ration, consolidation, merger or conversion shall hold office until the next

annual meeting of the members and until their successors are elected and

qualify. At each annual meeting or, in case of failure to hold the annual

meeting as specified in the bylaws, at a special meeting called for that

purpose, the members shall elect directors to hold office until the next

annual meeting of the members, except as otherwise provided in the

renewable energy electric generation cooperative act. Each director shall

hold office for the term for which elected and until a successor is elected

and qualifies.

(c) Instead of electing all the directors annually, the bylaws may pro-

vide for half of the directors, or a number as near thereto as possible, to

be elected to serve until the next annual meeting of the members and

that the remaining directors shall be elected to serve until the second

succeeding annual meeting. Thereafter, as directors' terms expire, the

members shall elect successor directors to serve until the second suc-

ceeding annual meeting after their election.

(d) Instead of electing the directors in the manner provided in sub-

section (b) or (c), the bylaws may provide that the members shall be

elected at such annual meetings to serve for terms of three years, except

that the terms of the first directors elected pursuant to this subsection

may be fixed in such bylaws for a number of years not exceeding three

and, upon the expiration thereof, all members thereafter to be elected

for terms of three years.

(e) A majority of the board of directors shall constitute a quorum.

(f) If a husband and wife hold a joint membership in a cooperative,

either one, but not both, may be elected a director.

Sec. 12. The officers of a cooperative shall consist of a president,

vice-president, secretary and treasurer. The offices shall be elected an-

nually by and from the board of directors. When a person holding any

such office ceases to be a director, the person shall cease to hold such

office. The office of secretary and the office of treasurer may be held by

the same person. The board of directors may also elect or appoint such

other officers, agents or employees as the board deems necessary or ad-

visable and the board shall prescribe the powers and duties of such offi-

cers, agents or employees. Any officer may be removed from office and

a successor elected in the manner prescribed in the bylaws.

Sec. 13. A cooperative may amend its articles of incorporation in any

manner not inconsistent with the renewable energy electric generation

cooperative act by complying with the following requirements: The pro-

posed amendment shall be presented to a meeting of the members, the

notice of which shall set forth or have attached the proposed amendment.

If the proposed amendment, with any changes, is approved by the affir-

mative vote of not less than 2/3 of those members voting at such meeting,

articles of amendment shall be executed on behalf of the cooperative by

its president or vice-president and attested by its secretary. The articles

of amendment shall recite that they are executed pursuant to the renew-

able energy electric generation cooperative act and shall state: (a) The

name of the cooperative; (b) the address of its principal office; and (c)

the amendment to its articles of incorporation. The president or vice-

president executing such articles of amendment shall make and annex

thereto an affidavit stating that the amendment was submitted and

adopted in compliance with the provisions of this section.

Sec. 14. A cooperative, upon authorization of its board of directors

or its members, may change the location of its principal office to any

place within the state of Kansas by filing, in the office of the secretary of

state, a certificate which recites such change of principal office and which

is executed by the cooperative's president or vice-president and attested

by the cooperative's secretary.

Sec. 15. (a) Any two or more cooperatives organized under the re-

newable energy electric generation cooperative act may merge into a sin-

gle cooperative, which may be any one of the constituent cooperatives,

or may consolidate into a new cooperative formed by the consolidation,

by complying with the following requirements:

(1) The proposition for the merger or consolidation of the coopera-

tives and proposed articles of merger or consolidation shall be submitted

to a meeting of the members of each merging or consolidating coopera-

tive, the notice of which shall have attached a copy of the proposed articles

of merger or consolidation; and

(2) if the proposed merger or consolidation and the proposed articles

of merger or consolidation, with any amendments, are approved by the

affirmative vote of not less than 2/3 of the members of each merging or

consolidating cooperative voting at each such meeting, the articles of

merger or consolidation in the form approved shall be executed on behalf

of each merging or consolidating cooperative by its president or vice-

president and attested by its secretary.

(b) Voting on the proposed articles of merger or consolidation shall

be in accordance with subsection (e) of section 9, and amendments

thereto.

(c) The articles of merger or consolidation shall recite that they are

executed pursuant to the renewable energy electric generation coopera-

tive act and shall state:

(1) The name of each merging or consolidating cooperative and the

address of its principal office;

(2) the name of the surviving or new cooperative and the address of

its principal office;

(3) a statement that each merging or consolidating cooperative agrees

to the merger or consolidation;

(4) the names and addresses of the directors of the surviving or new

cooperative; and

(5) the terms and conditions of the merger or consolidation and the

mode of carrying the same into effect, including the manner in which the

members of the merging or consolidating cooperatives may or shall be-

come members of the surviving or new cooperative.

Such articles may contain any provisions, not inconsistent with the re-

newable energy electric generation cooperative act, which are deemed

necessary or advisable for the conduct of the business of the surviving or

new cooperative.

(d) The president or vice-president of each merging or consolidating

cooperative executing the articles of merger or consolidation shall make

and annex thereto an affidavit stating that such articles were submitted

and approved in compliance with the provisions of this section.

Sec. 16. (a) In the case of a consolidation, the existence of the con-

solidating cooperatives shall cease and the articles of consolidation shall

be deemed to be the articles of incorporation of the new cooperative. In

case of a merger, the separate existence of the merging cooperatives shall

cease and the articles of incorporation of the surviving cooperatives shall

be amended to the extent, if any, that changes therein are necessary in

the articles of merger.

(b) All the rights, privileges, immunities and franchises and all prop-

erty, real and personal, including applications for membership, all debts

due on whatever account and all other choses in action, of each consoli-

dating or merging cooperative shall be deemed to be transferred to and

vested in the new or surviving cooperative without further act or deed.

(c) The new or surviving cooperative shall be responsible and liable

for all liabilities and obligations of each consolidating or merging coop-

erative and any claim existing or action or proceeding pending by or

against any of the consolidating or merging cooperatives may be prose-

cuted as if the consolidation or merger had not taken place, but the new

or surviving cooperative may be substituted in its place.

(d) Neither the rights of creditors nor any liens upon the property of

any such cooperative shall be impaired by such consolidation or merger.

Sec. 17. (a) A cooperative which has not commenced business may

be dissolved by delivering to the secretary of state articles of dissolution

which shall be executed on behalf of the cooperative by a majority of the

incorporators and which shall state:

(1) The name of the cooperative;

(2) the address of its principal office;

(3) that the cooperative has not commenced business;

(4) that any sums received by the cooperative, less any part thereof

disbursed for expenses of the cooperative, have been returned or paid to

those entitled thereto;

(5) that no debt of the cooperative is unpaid; and

(6) that a majority of the incorporators elect that the cooperative be

dissolved.

(b) A cooperative which has commenced business may be dissolved

in the following manner:

(1) The members at any meeting shall approve, by the affirmative

vote of not less than 2/3 of those members voting on such proposal at such

meeting, a proposal that the cooperative be dissolved. Upon such ap-

proval, a certificate of election to dissolve shall be executed on behalf of

the cooperative by its president or vice-president and attested by its sec-

retary. Such certificate shall state: (A) The name of the cooperative; (B)

the address of its principal office; and (C) that the members of the co-

operative have duly voted that the cooperative be dissolved. Such certif-

icate shall be submitted to the secretary of state for filing, together with

an affidavit, made by the cooperative's president or vice-president exe-

cuting the certificate, stating that the statements in the certificate are

true.

(2) Upon the filing of the certificate and affidavit by the secretary of

state, the cooperative shall cease to carry on its business except to the

extent necessary for the winding up thereof, but its corporate existence

shall continue until articles of dissolution have been filed by the secretary

of state. The board of directors shall immediately cause notice of the

dissolution proceedings to be mailed to each known creditor of and claim-

ant against the cooperative and to be published once a week for two

successive weeks in a newspaper of general circulation in the county

where the principal office of the cooperative is located. The board of

directors shall wind up and settle the affairs of the cooperative, collect

sums owing to it, liquidate its property and assets, pay and discharge its

debts, obligations and liabilities, and do all other things required to wind

up its business, and after paying or discharging or adequately providing

for the payment or discharge of all its debts, obligations and liabilities,

shall distribute any remaining sums among its members and former mem-

bers in proportion to the patronage of the respective members or former

members during the seven years next preceding the date of the filing of

the certificate by the secretary of state or, if the cooperative has not been

in existence for such period, then during the period of its existence prior

to such filing. The board of directors shall thereupon authorize the exe-

cution of articles of dissolution, which shall be executed on behalf of the

cooperative by its president or vice-president, and attested by its secre-

tary.

(3) The articles of dissolution shall recite that they are executed pur-

suant to the renewable energy electric generation cooperative act and

shall state:

(A) The name of the cooperative;

(B) the address of its principal office;

(C) the date on which the certificate of election to dissolve was filed

by the secretary of state;

(D) that there are no actions or suits pending against the cooperative;

(E) that all debts, obligations and liabilities of the cooperative have

been paid and discharged or that adequate provision has been made

therefor; and

(F) that the preceding provisions of this subsection have been duly

complied with.

The president or vice-president executing the articles of dissolution

shall make and annex thereto an affidavit stating that the statements made

therein are true.

Sec. 18. Articles of incorporation, amendment, consolidation,

merger, conversion or dissolution, when executed and accompanied by

such affidavits as required by applicable provisions of the renewable en-

ergy electric generation cooperative act, shall be presented to the secre-

tary of state for filing in the records of the secretary's office. If the sec-

retary of state finds that the articles presented conform to the

requirements of the renewable energy electric generation cooperative act,

the secretary, upon the payment of the fees provided by the renewable

energy electric generation cooperative act, shall file such articles in the

records of the secretary's office. Upon such filing the incorporation,

amendment, consolidation, merger, conversion or dissolution shall be in

effect. The provisions of this section shall also apply to certificates of

election to dissolve and affidavits executed in connection with such cer-

tificates of election to dissolve pursuant to subsection (b) of section 17,

and amendments thereto.

Sec. 19. (a) Except as otherwise determined by a vote of the mem-

bers of the cooperative, revenues of a cooperative for any fiscal year in

excess of the following shall be distributed by the cooperative to its mem-

bers in accordance with the bylaws of the cooperative:

(1) Amounts necessary to defray the expenses of operation and main-

tenance of facilities of the cooperative during such fiscal year;

(2) amounts necessary to pay interest and principal obligations of the

cooperative coming due in such fiscal year;

(3) amounts necessary to finance, or to provide a reserve for the fi-

nancing of, the construction or acquisition by the cooperative of additional

facilities to the extent determined by the board of directors;

(4) amounts necessary to provide a reasonable reserve for working

capital;

(5) amounts necessary to provide a reserve for the payment of in-

debtedness of the cooperative in an amount not less than the total of the

interest and principal payments in respect thereof required to be made

during the next following fiscal year.

(b) Nothing herein contained shall be construed to prohibit the pay-

ment by a cooperative of all or any part of its indebtedness prior to the

date when the same shall become due.

Sec. 20. (a) The board of directors of a cooperative shall have full

power and authority, without authorization by the members thereof, to

authorize the execution and delivery of a mortgage or mortgages or a

deed or deeds of trust of, or the pledging or encumbering of, any or all

of the property, assets, rights, privileges, licenses, franchises and permits

of the cooperative, whether acquired or to be acquired, and wherever

situated, as well as the revenues and income therefrom, all upon such

terms and conditions as the board of directors shall determine, to secure

any indebtedness of the cooperative.

(b) A cooperative may not otherwise sell, mortgage, lease or other-

wise dispose of or encumber all or a substantial portion of its property

unless such sale, mortgage, lease or other disposition or encumbrance is

authorized by the affirmative vote of not less than a majority of all the

members of the cooperative.

Sec. 21. No member of a cooperative shall be liable or responsible

for any debts of the cooperative and the property of the members shall

not be subject to execution therefor.

Sec. 22. Any mortgage, deed or trust or other instrument executed

by a cooperative doing business in this state pursuant to the renewable

energy electric generation cooperative act, which affects real and personal

property and which is recorded in the real property records in any county

in which such property is located or is to be located, shall have the same

force and effect as if the mortgage, deed of trust or other instrument

were also recorded, filed or indexed as provided by law in the proper

office in such county as a mortgage of personal property. All after-ac-

quired property of such cooperative described or referred to as being

mortgaged or pledged in any such mortgage, deed of trust or other in-

strument, shall become subject to the lien thereof immediately upon the

acquisition of such property by such cooperative, whether or not such

property was in existence at the time of the execution of such mortgage,

deed or trust or other instrument. Recordation of any such mortgage,

deed of trust or other instrument shall constitute notice and otherwise

have the same effect with respect to such after-acquired property as it

has under the laws relating to recordation, with respect to property owned

by such cooperative at the time of the execution of such mortgage, deed

of trust or other instrument and therein described or referred to as being

mortgaged or pledged thereby. The lien upon personal property of any

such mortgage, deed of trust or other instrument, after recordation

thereof, shall continue in existence and of record for the period of time

specified therein without the refiling thereof or the filing of any renewal

certificate, affidavit or other supplemental information required by the

laws relating to the renewal, maintenance or extension of liens upon per-

sonal property.

Sec. 23. No action or suit affecting an easement or lease may be

brought against a cooperative doing business in this state pursuant to the

renewable energy electric generation cooperative act, or against any

agent, servant or employee thereof, by reason of the maintenance of elec-

tric transmission lines on any real property after the expiration of a period

of two years of continuous maintenance of such lines without the consent

of the person or persons legally entitled to object to such maintenance.

Sec. 24. No person who is authorized to take acknowledgments un-

der the laws of this state shall be disqualified from taking acknowledg-

ments of instruments executed in favor of a cooperative or to which it is

a party, by reason of being an officer, director or member of such coop-

erative.

Sec. 25. (a) Cooperatives doing business in this state pursuant to the

renewable energy electric generation cooperative act shall be subject to

the jurisdiction and control of the state corporation commission of this

state in those provisions of chapter 66 of the Kansas Statutes Annotated

applicable to electric utilities.

(b) No merger or consolidation of any cooperative organized under

the provisions of the renewable energy electric generation cooperative

act shall become effective until approved by the state corporation com-

mission.

Sec. 26. The provisions of the Kansas securities act shall not apply

to any note, bond or other evidence of indebtedness issued by any co-

operative doing business in this state pursuant to the renewable energy

electric generation cooperative act to the United States of America or any

agency or instrumentality thereof, or to any mortgage, deed of trust or

other instrument executed to secure the same. The provisions of such

securities act shall not apply to the issuance of membership certificates

by any cooperative.

Sec. 27. (a) Every cooperative organized under the renewable energy

electric generation cooperative act shall make an annual report in writing

to the secretary of state, showing the financial condition of the cooperative

at the close of business on the last day of its tax period next preceding

the date of filing, but if any such cooperative's tax period is other than

the calendar year, it shall give notice thereof to the secretary of state prior

to December 31 of the year it commences such tax period. The report

shall be filed on or before the 15th day of the fourth month following the

close of the tax year of the electric cooperative. An extension for filing

the annual report may be granted upon the filing of a written application

with the secretary of state prior to the due date of the report, except that

no such extension may be granted for a period of more than 90 days. The

report shall be made on a form provided by the secretary of state, con-

taining the following information:

(1) The name of the cooperative;

(2) the location of the principal office of the cooperative;

(3) the names and addresses of the president, secretary, treasurer and

directors of the cooperative;

(4) the number of members of the cooperative;

(5) a balance sheet showing the financial condition of the cooperative

at the close of business on the last day of its tax period next preceding

the date of filing; and

(6) the change or changes, if any, in the particulars made since the

last annual report.

(b) The annual report shall be signed by the president, vice-president

or secretary of the cooperative, sworn to before an officer duly authorized

to administer oaths, and forwarded to the secretary of state. At the time

of filing such annual report, the cooperative shall pay an annual franchise

tax of $20.

Sec. 28. A cooperative organized under the renewable energy elec-

tric generation cooperative act shall pay the costs of use of distribution

and transmission systems by the cooperative to transmit electricity, the

costs of a generation interconnect study to the extent required by the

standard provisions for agreements for interconnection and the costs of

transmission system improvements, other upgrades and metering nec-

essary for system operation. The cooperative shall negotiate with the own-

ers of distribution and transmission systems for the purpose of determin-

ing such costs.

Sec. 29. If a member of a cooperative organized under the renewable

energy electric generation cooperative act is located within the certifi-

cated territory of a retail electric supplier, such supplier may charge such

member of the cooperative a monthly fee which reflects the cost of pro-

viding standby electric service, distribution system repair and mainte-

nance and other reasonable costs of being the provider of last resort.

Sec. 30. Any agreement between a cooperative organized under the

renewable energy electric generation cooperative act and the owner of

distribution or transmission lines directly interconnecting with generation

facilities of members of such cooperative for use of such lines by the

cooperative shall require that all safety, system reliability and other ap-

propriate issues shall have been satisfactorily resolved by the parties prior

to the cooperative's first delivery of electricity.

Sec. 31. (a) As used in this section:

(1) ``Appurtenances'' means all substations, towers, poles and other

structures and equipment necessary for the bulk transfer of electricity.

(2) ``Electric transmission line'' means any line or extension of a line

which is at least five miles long and which is used for the bulk transfer of

electricity.

(b) The Kansas development finance authority is hereby authorized

to issue revenue bonds in amounts sufficient to pay the following de-

scribed costs of construction, upgrading and acquisition, including any

required interest on the bonds during such construction, upgrading and

acquisition, plus all amounts required for the costs of bond issuance and

any required reserves on the bonds: (1) Construction or upgrading of

electric transmission lines and appurtenances to be used for the transfer

of 69 kilovolts or more of electricity; (2) acquisition of the right-of-way

on which transmission lines and appurtenances to be used for the transfer

of 69 kilovolts or more of electricity are to be constructed; and (3) up-

grading of electric transmission lines and appurtenances to be used for

the transfer of 69 kilovolts or more of electricity. The bonds, and interest

thereon, issued pursuant to this section shall be payable from revenues

derived from use of the transmission lines.

(c) The provisions of subsection (a) of K.S.A. 74-8905, and amend-

ments thereto, shall not prohibit the issuance of bonds by the Kansas

development finance authority for the purposes of this section and any

such issuance of bonds is exempt from the provisions of subsection (a) of

K.S.A. 74-8905, and amendments thereto, which would operate to pre-

clude such issuance.

(d) Revenue bonds, including refunding revenue bonds, issued here-

under shall not constitute an indebtedness of the state of Kansas, nor

shall they constitute indebtedness within the meaning of any constitu-

tional or statutory provision limiting the incurring of indebtedness.

(e) Revenue bonds, including refunding revenue bonds, issued here-

under and the income derived therefrom are and shall be exempt from

all state, county and municipal taxation in the state of Kansas, except

Kansas estate taxes.

Sec. 32. On or before September 1, 2003, the state corporation com-

mission shall establish standard provisions, including applicable fees, for

agreements providing for interconnection between the facilities of an

electric public utility, as defined by K.S.A. 66-101a, and amendments

thereto, and a generator which generates electricity from renewable re-

sources or technologies, as defined by section 2, and amendments thereto.

Sec. 33. If any provisions of this act or its application to any person

or circumstances is held invalid, the invalidity does not affect other pro-

visions or applications of the act that can be given effect without the

invalid provisions or application. To this end the provisions of this act are

severable.

Sec. 34. This act shall take effect and be in force from and after its

publication in the statute book.

Approved April 16, 2002.


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Date Composed: 10/29/2003 Date Modified: 10/29/2003