SENATE BILL No. 45
32,197, 79-32,197a, 79-32,201 and 79-32,207 and repealing the existing sections.
New Section 1. The provisions of sections 1 through 7 of this act
shall be known and may be cited as the individual development account
program for assistive technology.
New Sec. 2. As used in this act:
(a) ``Account holder'' means a person who is the owner of an individ-
ual development account.
(b) ``Assistive technology'' means any item, piece of equipment or
product system, whether acquired commercially, off the shelf, modified
or customized, that is used to increase, maintain or improve functional
capabilities of individuals with disabilities.
(c) ``Community-based organization'' means any nonprofit or chari-
table association that is approved by the institute to implement the in-
dividual development account reserve fund.
(d) ``Institute'' means the Schiefelbusch institute for life span studies
of the university of Kansas.
(e) ``Federal poverty level'' means the most recent poverty income
guidelines published in the calendar year by the United States depart-
ment of health and human services.
(f) ``Financial institution'' means any bank, trust company, savings
bank, credit union or savings and loan association or any other financial
institution regulated by the state of Kansas, any agency of the United
States or other state with an office in Kansas which is approved by the
institute to create and manage the necessary financial instruments setting
up individual development accounts for eligible families or individuals to
implement this program.
(g) ``Individual development account'' means a financial instrument
established in section 3, and amendments thereto.
(h) ``Individual development account reserve fund'' means the fund
created by an approved community-based organization for the purposes
of funding the costs incurred in the administration of the program by the
financial institutions and the community-based organizations and for pro-
viding matching funds for moneys in individual development accounts.
Such fund may include federal grant moneys.
(i) ``Matching funds'' means the moneys designated for contribution
from an individual development account reserve fund to an individual
development account by a community-based organization at a one-to-one
ratio up to a three-to-one match.
(j) ``Program'' means the Kansas individual development account pro-
gram established in sections 1 through 7, and amendments thereto.
(k) ``Program contributor'' means a person or entity who makes a
contribution to an individual development account reserve fund.
New Sec. 3. (a) There is hereby established within the institute a
program to be known as the individual development account program.
The program shall provide eligible families and individuals with an op-
portunity to establish special savings accounts for moneys which may be
used by such families and individuals for assistive technology.
(b) The institute shall adopt rules and regulations and policies to im-
plement and administer the provisions of sections 1 through 7, and
(c) The institute shall enter into contracts as deemed appropriate to
carry out the provisions of this act.
(d) The institute shall prepare a request for proposals from com-
munity-based organizations seeking to administer an individual develop-
ment account reserve fund on a not-for-profit basis. The community-
based organization proposals shall include:
(1) A requirement that the community-based organization make
matching contributions to the development account of an individual ac-
count holder's or family's contributions to the individual development
(2) a process for including account holders in decision making re-
garding the investment of funds in the accounts;
(3) specifications of the population or populations targeted for pri-
ority participation in the program;
(4) a process for including economic education seminars in the in-
dividual development account program; and
(5) a process for regular evaluation and review of individual devel-
opment accounts to ensure program compliance by account holders.
(e) A notice of the request for proposals shall be published once a
week for two consecutive weeks in a newspaper having general circulation
in the community at least 30 days before any action thereon. The request
for proposals shall also be posted on readily accessible bulletin boards in
all offices of the institute and sent elsewhere as the institute deems best.
(f) In reviewing the proposals of community-based organizations, the
institute shall consider the following factors:
(1) The not-for-profit status of such organization;
(2) the fiscal accountability of the community-based organization;
(3) the ability of the community-based organization to provide or
raise moneys for matching contributions;
(4) the ability of the community-based organization to establish and
administer a reserve fund account which shall receive all contributions
from program contributors; and
(5) the significance and quality of proposed auxiliary services, includ-
ing economic education seminars and their relationship to the goals of
the individual development account program.
(g) No more than 20% of all funds in the reserve fund account may
be used for administrative costs of the program in the first and second
years of the program, and no more than 15% of such funds may be used
for administrative costs in any subsequent year. Funds deposited by ac-
count holders shall not be used for administrative costs.
(h) No provision of this act shall be deemed to require the institute
to be obligated to provide matching funds or to incur any expense in the
administration of an individual development account reserve fund.
New Sec. 4. A family or individual whose household income is less
than or equal to 300% of the federal poverty level may open an individual
development account for the purpose of accumulating and withdrawing
moneys for specified expenditures. The account holder may withdraw
moneys from the account on the approval of the community-based or-
ganization, without penalty, for expenditures for assistive technology.
New Sec. 5. (a) Financial institutions seeking to administer individ-
ual development accounts approved by the institute shall be permitted to
establish individual development accounts pursuant to sections 1 through
7, and amendments thereto. The financial institution shall certify to the
institute, on forms prescribed by the institute and accompanied by any
documentation required by the institute, that such accounts have been
established pursuant to this act and that deposits have been made on
behalf of the account holder.
(b) A financial institution establishing an individual development ac-
(1) Keep the account in the name of the account holder;
(2) permit deposits to be made in the account by the following, sub-
ject to the indicated conditions:
(A) The account holder; or
(B) a community-based organization on behalf of the account holder.
Such a deposit may include moneys to match the account holder's de-
posits, up to a five to one match rate;
(3) require the account to earn at least the market rate of interest;
(4) permit the account holder to withdraw moneys upon approval of
a community-based organization from the account for the purpose as
provided in section 4, and amendments thereto.
(c) The total of all deposits by the account holder into an individual
development account in a calendar year shall not exceed $5,000. The total
balance in an individual development account at any time shall not exceed
New Sec. 6. (a) Account holders who withdraw moneys from an in-
dividual development account not in accordance with the provisions of
section 4, and amendments thereto, shall forfeit all matching moneys in
(b) All moneys forfeited by an account holder pursuant to subsection
(a) shall be returned to the individual development account reserve fund
of the contributing community-based organization.
(c) In the event of an account holder's death, the account, minus the
match funds, may be transferred to the ownership of a contingent ben-
eficiary. An account holder shall name contingent beneficiaries at the time
the account is established and may change such beneficiaries at any time.
If the named beneficiary is deceased or otherwise cannot accept the trans-
fer, the moneys shall be transferred to the estate of the deceased bene-
New Sec. 7. (a) Appropriate state agencies are hereby directed to
amend their state plans to protect the benefits of those receiving such
benefits by adding language consistent with the following: Any funds in
an individual development account, including accrued interest, shall be
disregarded when determining eligibility to receive the amount of any
public assistance or benefits.
(b) A program contributor shall be allowed a credit against state in-
come tax imposed under the Kansas income tax act in an amount equal
to 25% of the contribution amount.
(c) The institute shall verify all tax credit claims by contributors. The
administration of the community-based organization, with the coopera-
tion of the participating financial institutions, shall submit the names of
contributors and the total amount each contributor contributes to the
individual development account reserve fund for the calendar year. The
institute shall determine the date by which such information shall be
submitted to the institute by the local administrator. The institute shall
submit verification of qualified tax credits pursuant to sections 1 through
7 and amendments thereto to the department of revenue.
(d) The total tax credits authorized pursuant to this section shall not
exceed $6,250 in any fiscal year.
(e) The provisions of this section shall be applicable to all taxable
years commencing after December 31, 2002.
Sec. 8. K.S.A. 2000 Supp. 79-3230 is hereby amended to read as
follows: 79-3230. (a) The amount of income taxes imposed by this act
shall be assessed within three years after the original return was filed or,
the tax as shown to be due on the return was paid or within one year
after an amended return is filed, whichever is the later date, and no pro-
ceedings in court for the collection of such taxes shall be begun after the
expiration of such period. For purposes of this act any return filed before
the 15th day of the fourth month following the close of the taxable year
shall be considered as being filed on the 15th day of the fourth month
following the close of the taxable year, and any tax shown to be due on
the return and paid before the 15th day of the fourth month following
the close of the taxable year shall be deemed to have been paid on the
15th day of the fourth month following the close of the taxable year.
(b) In the case of a false or fraudulent return with intent to evade
tax, the tax may be assessed, or a proceeding in court for collection of
such tax may be begun at any time.
(c) No refund or credit shall be allowed by the director of taxation
after three years from the date prescribed by law for filing the return,
provided it was filed before the due date, unless before the expiration of
such period a claim therefor is filed by the taxpayer. If the return was
filed after the due date, a refund claim must be filed not later than three
years from the time the return was actually filed, or two years from the
date the tax was paid, whichever of such periods expires later. No claim
shall be allowed for credit or refund of overpayment of any tax imposed
by this act unless filed by the taxpayer within three years from the date
the original return was filed or two years from the date the tax claimed
to be refunded or against which the credit is claimed was paid, whichever
of such periods expires later, or if no return was filed by the taxpayer,
within two years from the date the tax claimed to be refunded or against
which the credit is claimed was paid. Where the assessment of any income
tax imposed by this act has been made within the period of limitation
properly applicable thereto, such tax may be collected by distraint or by
a proceeding in court, but only if begun within one year after the period
of limitation as defined in this act.
(d) In case a taxpayer has made claim for a refund, the taxpayer shall
have the right to commence a suit for the recovery of the refund at the
expiration of six months after the filing of the claim for refund, if no action
has been taken by the director of taxation.
(e) Before the expiration of time prescribed in this section for the
assessment of additional tax or the filing of a claim for a refund, the
director of taxation is authorized to enter into an agreement in writing
with the taxpayer consenting to the extension of the periods of limitations
as defined in this act for the assessment of tax or for the filing of a claim
for refund, at any time prior to the expiration of the period of limitations.
The period so agreed upon may be extended by subsequent agreements
in writing made before the expiration of the period previously agreed
upon. A copy of all such agreements and extensions thereof shall be filed
with the director of taxation within 30 days after their execution.
(f) Any taxpayer whose income has been adjusted by the federal in-
ternal revenue service or by the income tax collection agency of another
state is required to report such adjustments to the Kansas department of
revenue by mail within 180 days of the date the federal or other state
adjustments are paid, agreed to or become final, whichever is earlier.
Such adjustments shall be reported by filing an amended return for the
applicable taxable year and a copy of the federal or state revenue agent's
report detailing such adjustments. In the event such taxpayer is a cor-
poration, such report shall be by certified or registered mail.
Notwithstanding the provisions of subsection (a) or (c) of this section,
additional income taxes may be assessed and proceedings in court for
collection of such taxes may be commenced and any refund or credit may
be allowed by the director of taxation within 180 days following receipt
of any such report of adjustments by the Kansas department of revenue,
or within two years from the date the tax claimed to be refunded or,
against which the credit is claimed was paid, whichever period expires
later. No assessment shall be made nor any refund or credit shall be
allowable under the provisions of this paragraph except to the extent the
same is attributable to changes in the taxpayer's income due to adjust-
ments indicated by such report.
(g) In the event of failure to comply with the provisions of this section,
the statute of limitations shall be tolled.
Sec. 9. K.S.A. 2000 Supp. 79-32,207 is hereby amended to read as
follows: 79-32,207. (a) As used in this section, ``abandoned oil or gas well''
means an abandoned well, as defined by K.S.A. 2000 Supp. 55-191 and
(1) The drilling of which was commenced before January 1, 1970;
(2) which is located on land owned by the taxpayer claiming the tax
credit allowed by this section.
(b) For any taxable year commencing after December 31, 1997, and
before January 1, 2001 2000, a credit shall be allowed against the tax
imposed by the Kansas income tax act on the Kansas taxable income of a
taxpayer for expenditures made for the purpose of plugging any aban-
doned oil or gas well in accordance with rules and regulations of the state
corporation commission applicable thereto, in an amount equal to 50%
of such expenditures made in the taxable year.
(c) If the amount of the tax credit allowed by this section exceeds the
taxpayer's income tax liability for such taxable year, the amount thereof
which exceeds such tax liability may be carried over for deduction from
the taxpayer's income tax liability in the next succeeding taxable year or
years until the total amount of the tax credit has been deducted from tax
(d) The total amount of credits allowed taxpayers pursuant to this
section, including the amount of credits carried over under subsection
(c), shall not exceed $250,000 for any one fiscal year.
(e) The secretary of revenue shall adopt such rules and regulations
as necessary to carry out the purposes of this section.
Sec. 10. K.S.A. 2000 Supp. 79-32,195 is hereby amended to read as
follows: 79-32,195. As used in this act, the following words and phrases
shall have the meanings ascribed to them herein: (a) ``Business firm''
means any business entity authorized to do business in the state of Kansas
which is subject to the state income tax imposed by the provisions of the
Kansas income tax act, any individual subject to the state income tax
imposed by the provisions of the Kansas income tax act, any national
banking association, state bank, trust company or savings and loan asso-
ciation paying an annual tax on its net income pursuant to article 11 of
chapter 79 of the Kansas Statutes Annotated, or any insurance company
paying the premium tax and privilege fees imposed pursuant to K.S.A.
40-252, and amendments thereto;
(b) ``community services'' means:
(1) The conduct of activities which meet a demonstrated community
need and which are designed to achieve improved educational and social
services for Kansas children and their families, and which are coordinated
with communities including, but not limited to, social and human services
organizations that address the causes of poverty through programs and
services that assist low income persons in the areas of employment, food,
housing, emergency assistance and health care;
(2) crime prevention; and
(3) health care services.
(c) ``crime prevention'' means any nongovernmental activity which
aids in the prevention of crime.
(d) ``community service organization'' means any organization per-
forming community services in Kansas and which:
(1) Has obtained a ruling from the internal revenue service of the
United States department of the treasury that such organization is exempt
from income taxation under the provisions of section 501(c)(3) of the
federal internal revenue code; or
(2) is incorporated in the state of Kansas or another state as a non-
stock, nonprofit corporation; or
(3) has been designated as a community development corporation by
the United States government under the provisions of title VII of the
economic opportunity act of 1964; or
(4) is chartered by the United States congress.
(e) ``contributions'' shall mean and include the donation of cash, serv-
ices or property other than used clothing in an amount or value of $250
or more. Stocks and bonds contributed shall be valued at the stock market
price on the date of transfer. Services contributed shall be valued at the
standard billing rate for not-for-profit clients. Personal property items
contributed shall be valued at the lesser of its fair market value or cost
to the donor and may be inclusive of costs incurred in making the con-
tribution, but shall not include sales tax. Contributions of real estate are
allowable for credit only when title thereto is in fee simple absolute and
is clear of any encumbrances. The amount of credit allowable shall be
based upon the lesser of two current independent appraisals conducted
by state licensed appraisers.
(f) ``health care services'' shall include, but not be limited to, the
following: Services provided by local health departments, city, county or
district hospitals, city or county nursing homes, or other residential insti-
tutions, preventive health care services offered by a community service
organization including immunizations, prenatal care, the postponement
of entry into nursing homes by home health care services, and community
based services for persons with a disability, mental health services, indi-
gent health care, physician or health care worker recruitment, health ed-
ucation, emergency medical services, services provided by rural health
clinics, integration of health care services, home health services and serv-
ices provided by rural health networks.
(g) ``rural community'' means any city having a population of fewer
than 15,000 located in a county that is not part of a standard metropolitan
statistical area as defined by the United States department of commerce
or its successor agency. However, any such city located in a county de-
fined as a standard metropolitan statistical area shall be deemed a rural
community if a substantial number of persons in such county derive their
income from agriculture and, in any county where there is only one city
within the county which has a population of more than 15,000 and which
classifies as a standard metropolitan statistical area, all other cities in that
county having a population of less than 15,000 shall be deemed a rural
Sec. 11. K.S.A. 2000 Supp. 79-32,197 is hereby amended to read as
follows: 79-32,197. The amount of credit allowed pursuant to K.S.A. 79-
32,196, and amendments thereto, shall not exceed 50% of the total
amount contributed during the taxable year by the business firm to a
community service organization or governmental entity for programs ap-
proved pursuant to K.S.A. 79-32,198, and amendments thereto. The
amount of credit allowed pursuant to K.S.A. 79-32,196, and amendments
thereto, shall not exceed 70% of the total amount contributed during the
taxable year by the business firm in a rural community to a community
service organization or governmental entity located therein for programs
approved pursuant to K.S.A. 79-32,198, and amendments thereto. If the
amount of the credit allowed by K.S.A. 79-32,196, and amendments
thereto, exceeds the taxpayer's income tax liability imposed under the
Kansas income tax act, such excess amount shall be refunded to the tax-
payer. In no event shall the total amount of credits allowed under this
section exceed $5,000,000 $4,130,000 for any one fiscal year.
Sec. 12. K.S.A. 2000 Supp. 79-32,197a is hereby amended to read as
follows: 79-32,197a. Any business firm or business entity not subject to
Kansas income, privilege or premiums tax, hereinafter designated the
assignor, may sell, assign, convey or otherwise transfer tax credits allowed
and earned pursuant to K.S.A. 79-32,196, and amendments thereto, for
an amount not less than 50% of the value of any such credit. Such credits
shall be deemed to be allowed and earned by any such business entity
which is only disqualified therefrom by reason of not being subject to
such Kansas taxes. The business firm acquiring earned credits, hereinafter
designated the assignee, may use the amount of the acquired credits to
offset up to 100% of its income, privilege or premiums tax liability for the
taxable year in which such acquisition was made. Only the full credit
amount for any one contribution may be transferred and such credit may
be transferred one time. Unused credit amounts claimed by the assignee
may be carried forward for up to five years, except that all such amounts
shall be claimed within 10 years following the tax year in which the con-
tribution was made. The assignor shall enter into a written agreement
with the assignee establishing the terms and conditions of the agreement
and shall perfect such transfer by notifying the director of community
development of the department of commerce and housing in writing
within 30 calendar days following the effective date of the transfer and
shall provide any information as may be required by the director of com-
munity development of the department of commerce and housing to ad-
minister and carry out the provisions of this section. The amount received
by the assignor of such tax credit shall be taxable as income of the assignor,
and the excess of the value of such credit over the amount paid by the
assignee for such credit shall be taxable as income of the assignee.
New Sec. 13. The provisions of sections 10 through 12 shall be ap-
plicable to all taxable years commencing after December 31, 2000.
Sec. 14. K.S.A. 2000 Supp. 79-32,201 is hereby amended to read as
follows: 79-32,201. (a) Any taxpayer who makes expenditures for a qual-
ified alternative-fueled motor vehicle or alternative-fuel fueling station
shall be allowed a credit against the income tax imposed by article 32 of
chapter 79 of the Kansas Statutes Annotated, as follows:
(1) For any qualified alternative-fueled motor vehicle placed in serv-
ice on or after January 1, 1996, and before January 1, 2005, an amount
equal to 50% of the incremental cost or conversion cost for each qualified
alternative-fueled motor vehicle but not to exceed $3,000 for each such
motor vehicle with a gross vehicle weight of less than 10,000 lbs.; $5,000
for a heavy duty motor vehicle with a gross vehicle weight of greater than
10,000 lbs. but less than 26,000 lbs.; and $50,000 for motor vehicles hav-
ing a gross vehicle weight of greater than 26,000 lbs.;
(2) for any qualified alternative-fueled motor vehicle placed in service
on or after January 1, 2005, an amount equal to 40% of the incremental
cost or conversion cost for each qualified alternative-fueled motor vehicle,
but not to exceed $2,400 for each such motor vehicle with a gross vehicle
weight of less than 10,000 lbs.; $4,000 for a heavy duty motor vehicle with
a gross vehicle weight of greater than 10,000 lbs. but less than 26,000
lbs.; and $40,000 for motor vehicles having a gross vehicle weight of
greater than 26,000 lbs.;
(3) for any qualified alternative-fuel fueling station placed in service
on or after January 1, 1996, and before January 1, 2005, an amount equal
to 50% of the total amount expended for each qualified alternative-fuel
fueling station but not to exceed $200,000 for each fueling station;
(4) for any qualified alternative-fuel fueling station placed in service
on or after January 1, 2005, an amount equal to 40% of the total amount
expended for each qualified alternative-fuel fueling station, but not to
exceed $160,000 for each fueling station.
(b) If no credit has been claimed pursuant to subsection (a), a credit
in an amount not exceeding the lesser of 5% of the cost of the vehicle or
$750 shall be allowed to a taxpayer who purchases a motor vehicle
equipped by the vehicle manufacturer with an alternative fuel system and
who is unable or elects not to determine the exact basis attributable to
such property. The credit under this subsection shall be allowed only to
the first individual to take title to such motor vehicle, other than for resale.
The credit under this subsection for motor vehicles which are capable of
operating on a blend of 85% ethanol and 15% gasoline shall be allowed
for taxable years commencing after December 31, 1999, only if the indi-
vidual claiming the credit furnishes evidence of the purchase, during the
period of time beginning with the date of purchase of such vehicle and
ending on December 31 of the next succeeding calendar year, of 500 gal-
lons of such ethanol and gasoline blend as may be required or is satisfac-
tory to the secretary of revenue.
(c) The tax credit under subsection (a) or (b) shall be deducted from
the taxpayer's income tax liability for the taxable year in which the ex-
penditures are made by the taxpayer. If the amount of the tax credit
exceeds the taxpayer's income tax liability for the taxable year, the amount
which exceeds the tax liability may be carried over for deduction from
liability, except that no such tax credit shall be carried over for deduction
after the third taxable year succeeding the taxable year in which the ex-
penditures are made.
(d) As used in this section:
(1) ``Alternative fuel'' has the meaning provided by 42 U.S.C. 13211.
(2) ``Qualified alternative-fueled motor vehicle'' means a motor ve-
hicle that operates on an alternative fuel, meets or exceeds the clean fuel
vehicle standards in the federal clean air act amendments of 1990, Title
II and meets one of the following categories:
(A) Bi-fuel motor vehicle: A motor vehicle with two separate fuel
systems designed to run on either an alternative fuel or conventional fuel,
using only one fuel at a time;
(B) dedicated motor vehicle: A motor vehicle with an engine de-
signed to operate on a single alternative fuel only; or
(C) flexible fuel motor vehicle: A motor vehicle that may operate on
a blend of an alternative fuel with a conventional fuel, such as E-85 (85%
ethanol and 15% gasoline) or M-85 (85% methanol and 15% gasoline),
as long as such motor vehicle is capable of operating on at least an 85%
alternative fuel blend.
(3) ``Qualified alternative-fuel fueling station'' means the property
which is directly related to the delivery of alternative fuel into the fuel
tank of a motor vehicle propelled by such fuel, including the compression
equipment, storage vessels and dispensers for such fuel at the point where
such fuel is delivered but only if such property is primarily used to deliver
such fuel for use in a qualified alternative-fueled motor vehicle.
(4) ``Incremental cost'' means the cost that results from subtracting
the manufacturer's list price of the motor vehicle operating on conven-
tional gasoline or diesel fuel from the manufacturer's list price of the same
model motor vehicle designed to operate on an alternative fuel.
(5) ``Conversion cost'' means the cost that results from modifying a
motor vehicle which is propelled by gasoline or diesel to be propelled by
an alternative fuel.
(6) ``Taxpayer'' means any person who owns and operates a qualified
alternative-fueled vehicle licensed in the state of Kansas or who makes
an expenditure for a qualified alternative-fuel fueling station.
(7) ``Person'' means every natural person, association, partnership,
limited liability company, limited partnership or corporation.
(e) Except as otherwise more specifically provided, the provisions of
this section shall apply to all taxable years commencing after December
New Sec. 15. (a) For all tax years commencing after December 31,
2001, each Kansas state individual income tax return form shall contain
a designation as follows:
Senior Citizen Meals on Wheels Contribution Program. Check if you
wish to donate, in addition to your tax liability, or designate from your
refund, ______$1, ______$5, ______ $10, or $______.
(b) The director of taxation of the department of revenue shall de-
termine annually the total amount designated for contribution to the sen-
ior citizen meals on wheels contribution program pursuant to subsection
(a) and shall report such amount to the state treasurer who shall credit
the entire amount thereof to the senior citizen nutrition check-off fund
to be administered by the department of aging to provide financial assis-
tance under the senior nutritional program. In the case where donations
are made pursuant to subsection (a), the director shall remit the entire
amount thereof to the state treasurer who shall credit the same to such
fund. All expenditures from such fund shall be made in accordance with
Sec. 16. K.S.A. 2000 Supp. 79-3230, 79-32,195, 79-32,197, 79-
32,197a, 79-32,201 and 79-32,207 are hereby repealed.
Sec. 17. This act shall take effect and be in force from and after its
publication in the statute book.
Approved May 17, 2000.
Date Composed: 09/25/2001 Date Modified: 09/25/2001