Session Law

Identifying Information:L. 2001 ch. 206
Other Identifying Information:2001 House Bill 2266
Tax Type:Property Tax
Brief Description:An Act concerning certain electric generation facilities; relating to regulation and taxation thereof; amending K.S.A. 2000 Supp. 66-104 and repealing the existing section.
Keywords:


Body:

CHAPTER 206

HOUSE BILL No. 2266


An Act concerning certain electric generation facilities; relating to regulation and taxation

thereof; amending K.S.A. 2000 Supp. 66-104 and repealing the existing section.




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

Section 1. K.S.A. 2000 Supp. 66-104 is hereby amended to read as

follows: 66-104. (a) The term ``public utility,'' as used in this act, shall be

construed to mean every corporation, company, individual, association of

persons, their trustees, lessees or receivers, that now or hereafter may

own, control, operate or manage, except for private use, any equipment,

plant or generating machinery, or any part thereof, for the transmission

of telephone messages or for the transmission of telegraph messages in

or through any part of the state, or the conveyance of oil and gas through

pipelines in or through any part of the state, except pipelines less than 15

miles in length and not operated in connection with or for the general

commercial supply of gas or oil, and all companies for the production,

transmission, delivery or furnishing of heat, light, water or power. No

cooperative, cooperative society, nonprofit or mutual corporation or as-

sociation which is engaged solely in furnishing telephone service to sub-

scribers from one telephone line without owning or operating its own

separate central office facilities, shall be subject to the jurisdiction and

control of the commission as provided herein, except that it shall not

construct or extend its facilities across or beyond the territorial boundaries

of any telephone company or cooperative without first obtaining approval

of the commission. As used herein, the term ``transmission of telephone

messages'' shall include the transmission by wire or other means of any

voice, data, signals or facsimile communications, including all such com-

munications now in existence or as may be developed in the future.

(b) The term ``public utility'' shall also include that portion of every

municipally owned or operated electric or gas utility located outside of

and more than three miles from the corporate limits of such municipality,

but nothing in this act shall apply to a municipally owned or operated

utility, or portion thereof, located within the corporate limits of such

municipality or located outside of such corporate limits but within three

miles thereof except as provided in K.S.A. 66-131a, and amendments

thereto.

(c) Except as herein provided, the power and authority to control and

regulate all public utilities and common carriers situated and operated

wholly or principally within any city or principally operated for the benefit

of such city or its people, shall be vested exclusively in such city, subject

only to the right to apply for relief to the corporation commission as

provided in K.S.A. 66-133, and amendments thereto, and to the provi-

sions of K.S.A. 66-131a and K.S.A. 2000 Supp. 66-104e, and amendments

thereto. A transit system principally engaged in rendering local transpor-

tation service in and between contiguous cities in this and another state

by means of street railway, trolley bus and motor bus lines, or any com-

bination thereof, shall be deemed to be a public utility as that term is

used in this act and, as such, shall be subject to the jurisdiction of the

commission.

(d) The term ``public utility'' shall not include any activity of an oth-

erwise jurisdictional corporation, company, individual, association of per-

sons, their trustees, lessees or receivers as to the marketing or sale of

compressed natural gas for end use as motor vehicle fuel.

(e) At the option of an otherwise jurisdictional entity, the term ``public

utility'' shall not include any activity or facility of such entity as to the

generation, marketing and sale of electricity generated by an electric gen-

eration facility or addition to an electric generation facility which:

(1) Is newly constructed and placed in service on or after January 1,

2001; and

(2) is not in the rate base of: (A) An electric public utility that is

subject to rate regulation by the state corporation commission; (B) any

cooperative, as defined by K.S.A. 17-4603 and amendments thereto, or

any nonstock member-owned cooperative corporation incorporated in

this state; or (C) a municipally owned or operated electric utility.

(f) Additional generating capacity achieved through efficiency gains

by refurbishing or replacing existing equipment at generating facilities

placed in service before January 1, 2001, shall not qualify under subsec-

tion (e).

New Sec. 2. As used in sections 2 and 3, and amendments thereto:

(a) ``Independent power producer property'' means all or any portion

of property used solely in the generation, marketing and sale of electricity

generated by an electric generation facility described in subsection (e) of

K.S.A. 66-104, and amendments thereto. Independent power producer

property shall not include property used in generating electricity by nu-

clear resources or technologies or by renewable energy resources or tech-

nologies, as defined in K.S.A. 79-201, and amendments thereto;

(b) ``peak load plant'' means an independent power plant used during

maximum load periods.

New Sec. 3. The following described property, to the extent herein

specified, shall be exempt from all property or ad valorem taxes levied

under the laws of the state of Kansas:

(a) All electric generation facilities described in subsection (e) of

K.S.A. 66-104, and amendments thereto.

(b) The provisions of subsection (a) shall apply:

(1) Except as provided in paragraph (2), from and after commence-

ment of construction of such property and for the 12 taxable years im-

mediately following the taxable year in which construction of such prop-

erty is completed; or

(2) for peak load plants, from and after commencement of construc-

tion of such property and for the six taxable years immediately following

the taxable year in which construction of such property is completed.

(c) All pollution control devices purchased for or constructed or in-

stalled at electric generation facilities described in subsection (e) of K.S.A.

66-104, and amendments thereto.

(d) The provisions of subsection (c) shall apply:

(1) Except as provided in paragraph (2), from and after purchase or

commencement of construction or installation of such property and for

the 12 taxable years immediately following the taxable year in which such

property is purchased or construction or installation of such property is

completed; or

(2) for a peak load plant, from and after purchase or commencement

of construction or installation of such property and for the six taxable

years immediately following the taxable year in which such property is

purchased or construction or installation of such property is completed.

(e) The provisions of this section shall apply to all taxable years com-

mencing after December 31, 2000.

New Sec. 4. (a) For the purpose of financing the construction, pur-

chase and installation of pollution control devices at electric generation

facilities and additions to electric generation facilities described in sub-

section (e) of K.S.A. 66-104, and amendments thereto, the Kansas de-

velopment finance authority is hereby authorized to issue revenue bonds

in amounts sufficient to pay the costs of such construction, purchase and

installation, including any required interest on the bonds during construc-

tion and installation, plus all amounts required for the costs of bond is-

suance and any required reserves on the bonds. The bonds, and interest

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

derived from sales of generation from the electric generation facility. As

used in this subsection, ``pollution control devices'' means any device or

structure required to meet air emission or water discharge standards im-

posed by state or federal law.

(b) 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.

(c) 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.

(d) 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. 5. K.S.A. 2000 Supp. 66-104 is hereby repealed.

Sec. 6. This act shall take effect and be in force from and after its

publication in the statute book.

Approved May 22, 2000.


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Date Composed: 09/25/2001 Date Modified: 09/25/2001