Session Law

Identifying Information:L. 2002 ch. 097
Other Identifying Information:2002 Senate Bill 565
Tax Type:Corporate Income Tax
Brief Description:An Act concerning the impact act; expanding the availability thereof; concerning Kansas investments in major projects; amending K.S.A. 2001 Supp. 74-50,106 and 74-50,107 and repealing the existing sections.
Keywords:


Body:

CHAPTER 97

SENATE BILL No. 565


An Act concerning the impact act; expanding the availability thereof; concerning Kansas

investments in major projects; amending K.S.A. 2001 Supp. 74-50,106 and 74-50,107


and repealing the existing sections.


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

Section 1. K.S.A. 2001 Supp. 74-50,107 is hereby amended to read

as follows: 74-50,107. (a) The secretary of commerce and housing shall

determine and from time to time shall redetermine the rate at which

moneys shall be credited to the IMPACT program repayment fund in

order to satisfy all bond repayment obligations which have been incurred

to finance program costs for IMPACT programs (which shall be referred

to as the debt service rate) and the rate at which moneys shall be credited

to the IMPACT program services fund in order to finance program costs

that are not financed by bonds (which shall be referred to as the direct

funding rate). The total of the debt service rate and the direct funding

rate shall be the combined rate. Each rate so determined shall be certified

to the secretary of revenue. The On and after July 1, 2003, the combined

rate determined under this subsection shall not exceed 1.5%. On and after

July 1, 2005, the combined rate determined under this subsection shall

not exceed 1% 2%.

(b) Upon receipt of the rates determined and certified under sub-

section (a), the secretary of revenue shall apply daily the combined rate

to that portion of the moneys withheld from the wages of individuals and

collected under the Kansas withholding and declaration of estimated tax

act K.S.A. 79-3294 et seq., and amendments thereto. The amount so de-

termined shall be credited as follows: (1) The portion attributable to the

debt service rate shall be credited to the IMPACT program repayment

fund, and (2) the remaining portion shall be credited to the IMPACT

program services fund.

The aggregate of all amounts credited to the IMPACT program repay-

ment fund under this section during any fiscal year to pay bond repayment

obligations on bonds to finance major project investments shall not exceed

10% of the amount which results when the rate of 1% is applied to all

money withheld from the wages of individuals and received under the

Kansas withholding and declaration of estimated tax act.

On and after July 1, 2003, the aggregate of all amounts credited to the

IMPACT program repayment fund under this section during any fiscal

year to pay bond repayment obligations on bonds to finance major project

investments shall not exceed 10% of the amount which results when the

rate of 1.5% is applied to all moneys withheld from the wages of individ-

uals and received under the Kansas withholding and declaration of esti-

mated tax act.

On and after July 1, 2005, the aggregate of all amounts credited to the

IMPACT program repayment fund under this section during any fiscal

year to pay bond repayment obligations on bonds to finance major project

investments shall not exceed 10% of the amount which results when the

rate of 2% is applied to all money withheld from the wages of individuals

and received under the Kansas withholding and declaration of estimated

tax act.

Sec. 2. K.S.A. 2001 Supp. 74-50,106 is hereby amended to read as

follows: 74-50,106. (a) The secretary of commerce and housing shall re-

view applications for proposed agreements submitted by employers in

accordance with the standards and guidelines prescribed by this act and

by rules and regulations adopted under K.S.A. 74-50,104, and amend-

ments thereto. Each application for approval of a proposed agreement

shall be accompanied by information about the number and wages of the

new or retained jobs created by the employer, documentation of existing

training activities of the employer and such other information as may be

required by the secretary of commerce and housing.

(b) The secretary of commerce and housing may pool the funding

requirements of projects which are the subject of proposed agreements

to determine the funding requirements of the SKILL projects under con-

sideration to facilitate the issuance of bonds by the Kansas development

finance authority.

(c) The secretary of commerce and housing is hereby authorized to

expend funds raised pursuant to this act on major project investments.

The secretary shall adopt guidelines consistent with this act concerning

firm eligibility for major project investments and shall otherwise admin-

ister the major project investment portion of the IMPACT act.

(d) In order for an employer to be eligible for a major project in-

vestment, the employer must:

(1) Annually make an investment in training and education of the

employer's employees that exceeds 2% of the employer's total annual

payroll costs; or

(2) agree that a portion of any funds available under the agreement

be spent directly on employee education and training.

(e) An employer not creating new jobs shall not be eligible for par-

ticipation in an IMPACT program unless the employer meets the follow-

ing criteria: (1) Maintains a minimum of 1,000 250 retained jobs; (2)

makes a capital investment of at least $250,000,000 $50,000,000; and (3)

the secretary of commerce and housing finds that the program or project

will be a major factor in the Kansas basic enterprise remaining in Kansas.

(f) Prior to obtaining financing from the Kansas development finance

authority for any project, group of projects or major project investment

for one or more employers, the secretary of commerce and housing shall

present each such project to the governor's council on work force training

and investment for review and approval. No agreement shall be approved

by the secretary of commerce and housing unless each project under the

agreement has been reviewed and finally approved by the governor's

council on work force training and investment.

Sec. 3. K.S.A. 2001 Supp. 74-50,106 and 74-50,107 are hereby re-

pealed.

Sec. 4. This act shall take effect and be in force from and after its

publication in the statute book.

Approved April 24, 2002.


__________




Date Composed: 10/10/2002 Date Modified: 10/10/2002