Session Law

Identifying Information:L. 2001 ch. 053
Other Identifying Information:2001 House Bill 2011
Tax Type:Motor Vehicle Fuel Tax
Brief Description:An Act concerning certain ethyl alcohol production; relating to incentives therefor; amend- ing K.S.A. 79-34,163 and 79-34,164 and K.S.A. 2000 Supp. 79-3425 and 79-34,161 and repealing the existing sections.
Keywords:


Body:

CHAPTER 53

HOUSE BILL No. 2011

(Amended by Chapter 167)


An Act concerning certain ethyl alcohol production; relating to incentives therefor; amend-

ing K.S.A. 79-34,163 and 79-34,164 and K.S.A. 2000 Supp. 79-3425 and 79-34,161 and

repealing the existing sections.




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

Section 1. K.S.A. 2000 Supp. 79-3425 is hereby amended to read as

follows: 79-3425. All of the amounts collected under the motor-fuel tax

law and amendments thereto, except amounts collected pursuant to

K.S.A. 79-3408c, and amendments thereto, shall be remitted by the di-

rector to the state treasurer daily, and the state treasurer shall deposit all

such amounts in the state treasury. The state treasurer shall credit such

amount thereof as the director shall order in the motor-vehicle fuel tax

refund fund to be used for the purpose of paying motor-vehicle fuel tax

refunds as provided by law. The state treasurer shall credit the remainder

of such amounts as follows: To the state highway fund amounts specified

in K.S.A. 79-34,142, and amendments thereto, to a special city and county

highway fund which is hereby created, amounts specified in K.S.A. 79-

34,142, and amendments thereto, to be apportioned and distributed in

the manner provided in K.S.A. 79-3425c, and amendments thereto, and

to the current production account and the new production account of the

Kansas qualified agricultural ethyl alcohol producer incentive fund, which

is hereby created in the state treasury, in the amount and in the manner

specified in K.S.A. 79-34,161, and amendments thereto, to be expended

in the manner provided in K.S.A. 79-34,162, and amendments thereto.

Sec. 2. K.S.A. 2000 Supp. 79-34,161 is hereby amended to read as

follows: 79-34,161. On October 1, 1987 July 1, 2001, and quarterly there-

after, the state treasurer shall credit $625,000 state treasurer shall credit

amounts as provided in this subsection from the amounts remaining after

the state treasurer credits an amount to the motor vehicle fuel tax refund

fund as provided in K.S.A. 79-3425, and amendments thereto, in the

Kansas qualified agricultural ethyl alcohol producer incentive fund. to the

Kansas qualified agricultural ethyl alcohol producer incentive fund. The

current production account and the new production account are hereby

created in the Kansas qualified agricultural ethyl alcohol producer incen-

tive fund. During fiscal years 2002, 2003 and 2004, the state treasurer

(a) shall credit $500,000 each calendar quarter to the current production

account of the Kansas qualified agricultural ethyl alcohol producer incen-

tive fund, and (b) shall credit $375,000 each calendar quarter to the new

production account of the Kansas qualified agricultural ethyl alcohol pro-

ducer incentive fund. During fiscal years 2005 through 2011, the state

treasurer shall credit $875,000 each calendar quarter to the new produc-

tion account of the Kansas qualified agricultural ethyl alcohol producer

incentive fund. On July 1 of each fiscal year through fiscal year 2011, or

as soon after each such date as information is available, the secretary of

revenue shall certify to the director of accounts and reports the amount

of any unencumbered balance as of June 30 of the preceding fiscal year

in the current production account of such fund and the director of ac-

counts and reports shall transfer the amount certified from the current

producer account to the new production account of the Kansas qualified

agricultural ethyl alcohol producer incentive fund. Any unencumbered

balance as of June 30 of any fiscal year in the new production account of

such fund shall remain credited in the new production account for the

payment of claims of new production incentives in ensuing fiscal years. If

the aggregate of outstanding claims made on the current production ac-

count of such fund is greater than the amount credited to such account,

then such claims shall be paid on a pro rata basis. Each claim may be

paid regardless of the fiscal year during which the claim was submitted.

Sec. 3. K.S.A. 79-34,163 is hereby amended to read as follows: 79-

34,163. (a) A Kansas qualified agricultural ethyl alcohol producer shall be

paid a production incentive for distilling agricultural ethyl alcohol. The

incentive shall be payable to the Kansas qualified agricultural ethyl alcohol

producer from the Kansas qualified agricultural ethyl alcohol producer

incentive fund. The amount of the production incentive shall not exceed

$.20 per gallon of agricultural ethyl alcohol sold to an alcohol blender. be

as follows:

(1) During fiscal years 2002, 2003 and 2004, the amount shall be $.05

for each gallon of agricultural ethyl alcohol sold by the producer who is

in production prior to July 1, 2001, to an alcohol blender. Any such

amounts pursuant to this subsection shall be paid from the current pro-

duction account of the Kansas qualified agricultural ethyl alcohol pro-

ducer incentive fund;

(2) If the producer who is in production prior to July 1, 2001, in-

creases the producer's agricultural ethyl alcohol production capacity on

or after July 1, 2001, by an amount of 5,000,000 gallons over the pro-

ducer's base sales, such producer shall receive an amount equal to $.075

for each gallon of agricultural ethyl alcohol sold by the producer to an

alcohol blender that is in excess of the producer's base sales. No producer

shall receive the production incentive pursuant to this subsection for more

than 15,000,000 gallons sold. Any such amount shall be paid from the

new production account of the fund; and

(3) any producer who commences production on or after July 1, 2001,

the amount shall be $.075 for each gallon of agricultural ethyl alcohol sold

by such producer to an alcohol blender, if such producer has sold at least

5,000,000 gallons. No producer shall receive the production incentive pur-

suant to this subsection for more than 15,000,000 gallons sold. Any such

amounts shall be paid from the new production account of the fund.

(b) For the purposes of subsection (a), a producer's base sales shall

be the number of gallons of agricultural ethyl alcohol sold by the producer

to an alcohol blender in calendar year 2000. All new production incentives

pursuant to this section for a producer who is in production prior to July

1, 2001, shall be based on such producer's base sales.

(c) The amounts payable to a producer as provided in subsections

(a)(2) and (a)(3) shall be payable for no more than seven years to any one

producer.

(b) (d) The Kansas qualified agricultural ethyl alcohol producer shall

file for the production incentive beginning October 1, 1987 July 1, 2001,

and quarterly thereafter, on a form furnished by the department of rev-

enue. The form shall require the producer to file such information as the

secretary of revenue may require by rules and regulations, but shall in-

clude information relating to the original production records and invoices

issued to the alcohol blender at the time of delivery, showing the total

number of gallons of agricultural ethyl alcohol sold to the alcohol blender

for the previous three months.

(c) (e) The secretary of revenue may adopt such rules and regulations

necessary to administer the provisions of this act, including the devel-

opment of a procedure for the payment of the production incentive.

Sec. 4. K.S.A. 79-34,164 is hereby amended to read as follows: 79-

34,164. The provisions of K.S.A. 79-34,160 through 79-34,163, and

amendments thereto, shall expire on July 1, 2001 2011.

Sec. 5. K.S.A. 79-34,163 and 79-34,164 and K.S.A. 2000 Supp. 79-

3425 and 79-34,161 are hereby repealed.

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

publication in the statute book.

Approved March 28, 2000.


__________




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