Session Law

Identifying Information:L. 2001 ch. 103
Other Identifying Information:2001 Substitute for House Bill 2005
Tax Type:Kansas Retailers' Sales Tax
Brief Description:(Amends Chapter 5)(Amended by Chapter 167)An Act concerning tax increment financing; reorganization thereof; amending K.S.A. 12- 1772 and 12-17,104 and K.S.A. 2000 Supp. 12-1770, 12-1770a, 12-1771, 12-1771a, 12- 1771b, 12-1771d, 12-1773, 12-1774, 12-1774a, 12-1775, 12-1776, 19-101a, 74-5093, 79- 3620, as amended by section 460 of 2001 Senate Bill No. 15, 79-3620b and 79-3710, as amended by section 461 of 2001 Senate Bill No. 15, and repealing the existing sections; also repealing K.S.A. 2000 Supp. 12-1771c and 12-1774b.
Keywords:


Body:

CHAPTER 103

Substitute for HOUSE BILL No. 2005

(Amends Chapter 5)

(Amended by Chapter 167)


An Act concerning tax increment financing; reorganization thereof; amending K.S.A. 12-

1772 and 12-17,104 and K.S.A. 2000 Supp. 12-1770, 12-1770a, 12-1771, 12-1771a, 12-

1771b, 12-1771d, 12-1773, 12-1774, 12-1774a, 12-1775, 12-1776, 19-101a, 74-5093, 79-

3620, as amended by section 460 of 2001 Senate Bill No. 15, 79-3620b and 79-3710, as

amended by section 461 of 2001 Senate Bill No. 15, and repealing the existing sections;

also repealing K.S.A. 2000 Supp. 12-1771c and 12-1774b.




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

Section 1. K.S.A. 2000 Supp. 12-1770 is hereby amended to read as

follows: 12-1770. It is hereby declared to be the purpose of this act to

promote, stimulate and develop the general and economic welfare of the

state of Kansas and its communities and to assist in the development and

redevelopment of blighted areas and deteriorating areas which are not

yet blighted, but may be so in the future located within cities, environ-

mentally contaminated areas located within and without cities, enterprise

zones located within cities and, major tourism areas as defined in sub-

section (a)(1)(D) of K.S.A. 12-1774, and amendments thereto, thus eli-

gible areas within and without a city thereby promoting the general wel-

fare of the citizens of this state, by authorizing cities to acquire certain

property and to issue special obligation bonds and full faith and credit tax

increment bonds for the financing of redevelopment projects. It is further

found and declared that the powers conferred by this act are for public

uses and purposes for which public money may be expended and the

power of eminent domain exercised. The necessity in the public interest

for the provisions of this act is hereby declared as a matter of legislative

determination.

Sec. 2. K.S.A. 2000 Supp. 12-1770a is hereby amended to read as

follows: 12-1770a. For purposes of K.S.A. 12-1770 et seq. and amend-

ments thereto:

(a) ``Historic theater'' means a building constructed prior to 1940

which was constructed for the purpose of staging entertainment, includ-

ing motion pictures, vaudeville shows or operas, that is operated by a

nonprofit corporation and is designated by the state historic preservation

officer as eligible to be on the Kansas register of historic places or is a

member of the Kansas historic theatre association;

(b) ``sales tax increment'' means the amount of state and local sales

tax revenue imposed pursuant to K.S.A. 12-187 et seq., 79-3601 et seq.

and 79-3701 et seq., and amendments thereto, collected from taxpayers

doing business within the historic theater that is in excess of the amount

of such taxes collected prior to the designation of the building as a historic

theater for purposes of this act. As used in this act, unless the context

clearly shows otherwise:

(a) ``Auto race track facility'' means: (1) An auto race track facility

and facilities directly related and necessary to the operation of an auto

race track facility, including, but not limited to, grandstands, suites and

viewing areas, concessions, souvenir facilities, catering facilities, visitor

and retail centers, signage and temporary hospitality facilities, but ex-

cluding (2) hotels, motels, restaurants and retail facilities, not directly

related to or necessary to the operation of such facility.

(b) ``Base year assessed valuation'' means the assessed valuation of all

real property within the boundaries of a redevelopment district on the

date the redevelopment district was established.

(c) ``Blighted area'' means an area which:

(1) Because of the presence of a majority of the following factors,

substantially impairs or arrests the development and growth of the mu-

nicipality or constitutes an economic or social liability or is a menace to

the public health, safety, morals or welfare in its present condition and

use:

(A) A substantial number of deteriorated or deteriorating structures;

(B) predominance of defective or inadequate street layout;

(C) unsanitary or unsafe conditions;

(D) deterioration of site improvements;

(E) tax or special assessment delinquency exceeding the fair market

value of the real property;

(F) defective or unusual conditions of title including but not limited

to cloudy or defective titles, multiple or unknown ownership interests to

the property;

(G) improper subdivision or obsolete platting or land uses;

(H) the existence of conditions which endanger life or property by fire

or other causes; or

(I) conditions which create economic obsolescence; or

(2) has been identified by any state or federal environmental agency

as being environmentally contaminated to an extent that requires a re-

medial investigation; feasibility study and remediation or other similar

state or federal action; or

(3) previously was found by resolution of the governing body to be a

slum or a blighted area under K.S.A. 17-4742 et seq., and amendments

thereto.

(d) ``Conservation area'' means any improved area comprising 15%

or less of the land area within the corporate limits of a city in which 50%

or more of the structures in the area have an age of 35 years or more,

which area is not yet blighted, but may become a blighted area due to the

existence of a combination of two or more of the following factors:

(1) Dilapidation, obsolescence or deterioration of the structures;

(2) illegal use of individual structures;

(3) the presence of structures below minimum code standards;

(4) building abandonment;

(5) excessive vacancies;

(6) overcrowding of structures and community facilities; or

(7) inadequate utilities and infrastructure.

(e) ``De minimus'' means an amount less than 15% of the land area

within a redevelopment district.

(f) ``Developer'' means any person, firm, corporation, partnership or

limited liability company, other than a city.

(g) ``Eligible area'' means a blighted area, conservation area, enter-

prise zone, historic theater or major tourism area.

(h) ``Enterprise zone'' means an area within a city that was designated

as an enterprise zone prior to July 1, 1992, pursuant to K.S.A. 12-17,107

through 12-17,113, and amendments thereto, prior to its repeal and the

conservation, development or redevelopment of the area is necessary to

promote the general and economic welfare of such city.

(i) ``Environmental increment'' means the increment determined pur-

suant to subsection (b) of K.S.A. 12-1771a, and amendments thereto.

(j) ``Environmentally contaminated area'' means an area of land hav-

ing contaminated groundwater or soil which is deemed environmentally

contaminated by the department of health and environment or the United

States environmental protection agency.

(k) ``Feasibility study'' means a study which shows whether a rede-

velopment project's benefits and tax increment revenue and other avail-

able revenues under K.S.A. 12-1774 (a)(1) are expected to exceed or be

sufficient to pay for the redevelopment project costs.

(l) ``Historic theater'' means a building constructed prior to 1940

which was constructed for the purpose of staging entertainment, including

motion pictures, vaudeville shows or operas, that is operated by a non-

profit corporation and is designated by the state historic preservation

officer as eligible to be on the Kansas register of historic places or is a

member of the Kansas historic theatre association.

(m) ``Historic theater sales tax increment'' means the amount of state

and local sales tax revenue imposed pursuant to K.S.A. 12-187 et seq., 79-

3601 et seq. and 79-3701 et seq., and amendments thereto, collected from

taxpayers doing business within the historic theater that is in excess of

the amount of such taxes collected prior to the designation of the building

as a historic theater for purposes of this act.

(n) ``Major tourism area'' means an area for which the secretary has

made a finding the capital improvements costing not less than

$100,000,000 will be built in the state to construct an auto race track

facility.

(o) ``Real property taxes'' means all taxes levied on an ad valorem basis

upon land and improvements thereon.

(p) ``Redevelopment project area'' or ``project area'' means an area

designated by a city within a redevelopment district.

(q) ``Redevelopment project costs'' means those costs necessary to im-

plement a redevelopment plan, including, but not limited to costs incurred

for:

(1) Acquisition of property within the redevelopment project area;

(2) payment of relocation assistance;

(3) site preparation including utility relocations;

(4) sanitary and storm sewers and lift stations;

(5) drainage conduits, channels and levees;

(6) street grading, paving, graveling, macadamizing, curbing, gutter-

ing and surfacing;

(7) street light fixtures, connection and facilities;

(8) underground gas, water, heating and electrical services and con-

nections located within the public right-of-way;

(9) sidewalks and pedestrian underpasses or overpasses;

(10) drives and driveway approaches located within the public right-

of-way;

(11) water mains and extensions;

(12) plazas and arcades;

(13) parking facilities;

(14) landscaping and plantings, fountains, shelters, benches, sculp-

tures, lighting, decorations and similar amenities; and

(15) all related expenses to redevelop and finance the redevelopment

project.

Redevelopment project costs shall not include costs incurred in con-

nection with the construction of buildings or other structures to be owned

by or leased to a developer, however, the ``redevelopment project costs''

shall include costs incurred in connection with the construction of build-

ings or other structures to be owned or leased to a developer which in-

cludes an auto race track facility or is in a redevelopment district includ-

ing some or all of the land and buildings comprising a state mental

institution closed pursuant to section 2 of chapter 219 of the 1995 Session

Laws of Kansas.

(r) ``Redevelopment district'' means the specific area declared to be

an eligible area in which the city may develop one or more redevelopment

projects.

(s) ``Redevelopment district plan'' or ``district plan'' means the prelim-

inary plan that identifies all of the proposed redevelopment project areas

and identifies in a general manner all of the buildings, facilities and im-

provements in each that are proposed to be constructed or improved in

each redevelopment project area.

(t) ``Redevelopment project'' means the approved project to imple-

ment a project plan for the development of the established redevelopment

district.

(u) ``Redevelopment project plan'' or ``project plan'' means the plan

adopted by a municipality for the development of a redevelopment project

or projects which conforms with K.S.A. 12-1772, and amendments

thereto, in a redevelopment district.

(v) ``Secretary'' means the secretary of commerce and housing.

(w) ``Substantial change'' means, as applicable, a change wherein the

proposed plan or plans differ substantially from the intended purpose for

which the district plan or project plan was approved.

(x) ``Tax increment'' means that amount of real property taxes col-

lected from real property located within the redevelopment district that

is in excess of the amount of real property taxes which is collected from

the base year assessed valuation.

(y) ``Taxing subdivision'' means the county, city, unified school dis-

trict and any other taxing subdivision levying real property taxes, the

territory or jurisdiction of which includes any currently existing or sub-

sequently created redevelopment district.

Sec. 3. K.S.A. 2000 Supp. 12-1771 is hereby amended to read as

follows: 12-1771. (a) No city shall exercise any of the powers conferred

by K.S.A. 12-1770 et seq., and amendments thereto, unless the governing

body of such city has adopted a resolution finding that the specific project

area sought to be redeveloped is a blighted area, a conservation area, a

major tourism area as defined in K.S.A. 12-1774, and amendments

thereto, a historic theater as defined in K.S.A. 2000 Supp. 12-1770a, and

amendments thereto, or was designated prior to July 1, 1992, as an en-

terprise zone pursuant to K.S.A. 12-17,110 prior to its repeal, and the

conservation, development or redevelopment of such area is necessary to

promote the general and economic welfare of such city. Enterprise zones

designated prior to July 1, 1992, may be enlarged by the city to an area

not exceeding 25% of the city's land area upon a finding by the secretary

of the department of commerce and housing that a redevelopment project

proposed by the city which requires the enlargement is of statewide im-

portance and that it will meet the criteria specified in subsection (a)(1)(D)

of K.S.A. 12-1774, and amendments thereto. A unified government, es-

tablished pursuant to K.S.A. 12-340 et seq., and amendments thereto,

may enlarge an enterprise zone, established within its jurisdiction prior

to July 1, 1992, to an area not exceeding 200% of the area of the original

enterprise zone regardless of whether such enlargement crosses the

boundary of a city within the jurisdiction of the unified government if the

secretary of commerce and housing makes the same findings required for

enlargement of an enterprise zone by a city. For the purpose of this

subsection, the term ``blighted area'' means an area which: (1) Because

of the presence of a majority of the following factors, substantially impairs

or arrests the sound development and growth of the municipality or con-

stitutes an economic or social liability or is a menace to the public health,

safety, morals or welfare in its present condition and use: (A) A sub-

stantial number of deteriorated or deteriorating structures; (B) predom-

inance of defective or inadequate street layout; (C) unsanitary or unsafe

conditions; (D) deterioration of site improvements; (E) diversity of own-

ership; (F) tax or special assessment delinquency exceeding the fair value

of the land; (G) defective or unusual conditions of title; (H) improper

subdivision or obsolete platting or land uses; (I) the existence of condi-

tions which endanger life or property by fire and other causes; or (J)

conditions which create economic obsolescence; or (2) has been identified

by any state or federal environmental agency as being environmentally

contaminated to an extent that requires a remedial investigation, feasi-

bility study and remediation or other similar state or federal action; or (3)

previously was found by resolution of the governing body to be a slum or

a blighted area under K.S.A. 17-4742 et seq., and amendments thereto.

For the purpose of this subsection, conservation area means any im-

proved area within the corporate limits of a city in which 50% or more

of the structures in the area have an age of 35 years or more, which area

is not yet blighted, but may become a blighted area due to the existence

of a combination of two or more of the following factors: (i) Dilapidation,

obsolescence or deterioration of the structures; (ii) illegal use of individual

structures; (iii) the presence of structures below minimum code stan-

dards; (iv) building abandonment; (v) excessive vacancies; (vi) overcrowd-

ing of structures and community facilities; or (vii) inadequate utilities and

infrastructure. Not more than 15% of the land area of a city may be found

to be a conservation area.

(b) The powers conferred upon cities under the provisions of K.S.A.

12-1770 et seq., and amendments thereto, shall be exercised by cities, as

determined by resolution adopted pursuant to K.S.A. 12-1772, and

amendments thereto, (1) in enterprise zones designated prior to July 1,

1992, including any area added to such enterprise zone after July 1, 1992,

pursuant to subsection (a), (2) in blighted areas of cities and counties

described by subsection (a)(2), (3) in conservation areas of cities, (4) in

major tourism areas as defined in K.S.A. 12-1774 and amendments

thereto (5) in blighted areas of cities, as determined by resolution adopted

pursuant to K.S.A. 17-4742 et seq., and amendments thereto or (6) for

buildings designated as historic theaters pursuant to K.S.A. 2000 Supp.

12-1771d.

(c) Within that portion of the city described in subsection (b), the

governing body of a city may establish a district to be known as a ``rede-

velopment district''. Within that portion of a city and county described in

subsection (b) excluding paragraph (3) of subsection (b), the governing

body of the city, upon written consent of the board of county commis-

sioners, may establish a district inclusive of land outside the boundaries

of the city to be known as a redevelopment district. In all such cases, the

board of county commissioners, prior to providing written consent, shall

be subject to the same procedure for public notice and hearing as is

required of a city pursuant to subsection (d) for the establishment of a

redevelopment district. One or more redevelopment projects may be un-

dertaken by a city within a redevelopment district after such redevelop-

ment district has been established in the manner provided by subsection

(d).

(d) (a) Resolution procedure for a redevelopment district. Any city

proposing to establish a redevelopment district within an eligible area

shall adopt a resolution stating that the city is considering the establish-

ment of a redevelopment district. Such resolution shall:

(1) Give notice that a public hearing will be held to consider the

establishment of a redevelopment district and fix the date, hour and place

of such public hearing;

(2) describe the proposed boundaries of the redevelopment district;

(3) describe a proposed comprehensive plan that identifies all of the

proposed redevelopment project areas and that identifies in a general

manner all of the buildings and facilities that are proposed to be con-

structed or improved in each redevelopment project area the district plan;

(4) state that a description and map of the proposed redevelopment

district are available for inspection at a time and place designated;

(5) state that the governing body will consider findings necessary for

the establishment of a redevelopment district.

Notice shall be given as provided in subsection (c) (b) of K.S.A. 12-

1772, and amendments thereto.

(e) Upon the conclusion of the public hearing, the governing body

may adopt a resolution to make any findings required by subsection (a)

and may establish the redevelopment district by ordinance. Such reso-

lution shall contain a comprehensive plan that identifies all of the pro-

posed redevelopment project areas and identifies in a general manner all

of the buildings and facilities that are proposed to be constructed or im-

proved in each redevelopment project area. The boundaries of such dis-

trict shall not include any area not designated in the notice required by

subsection (d). Subject to the provisions of K.S.A. 2000 Supp. 12-1771c,

and amendments thereto, any addition of area to the redevelopment dis-

trict or any substantial change to the comprehensive plan shall be subject

to the same procedure for public notice and hearing as is required for

the establishment of the district. The boundaries of any such district in a

major tourism area including an auto race track facility located in Wy-

andotte county, shall, without regard to that portion of the district per-

taining to the auto race track facility, be as follows: Beginning at the

intersection of Interstate 70 and Interstate 435; West along Interstate 70

to 118th Street; North along 118th Street to State Avenue; Northeasterly

along proposed relocated State Avenue to 110th Street; North along

110th Street to Parallel Parkway; East along Parallel Parkway to Interstate

435; South along Interstate 435 to Interstate 70.

(b) Posthearing procedure. Upon the conclusion of the public hearing,

the governing body may pass an ordinance. Such ordinance shall: (1)

Make a finding that: (A) The redevelopment district proposed to be de-

veloped is an eligible area; and (B) the conservation, development or re-

development of such area is necessary to promote the general and eco-

nomic welfare of the city; (2) contain the district plan as approved; and

(3) contain the legal description of the redevelopment district and may

establish the redevelopment district. Such ordinance shall contain a dis-

trict plan that identifies all of the proposed redevelopment project areas

and identifies in a general manner all of the buildings and facilities that

are proposed to be constructed or improved in each redevelopment project

area. The boundaries of such district shall not include any area not des-

ignated in the notice required by subsection (a).

(c) The governing body of a city may establish a redevelopment dis-

trict within that city. Such city may establish a district inclusive of land

outside the boundaries of the city upon written consent of the board of

county commissioners. Prior to providing written consent, the board of

county commissioners shall be subject to the same procedure for public

notice and hearing as is required of a city pursuant to subsection (a) for

the establishment of a redevelopment district. One or more redevelopment

projects may be undertaken by a city within a redevelopment district after

such redevelopment district has been established in the manner provided

by this section.

(f) (d) No privately owned property subject to ad valorem taxes shall

be acquired and redeveloped under the provisions of K.S.A. 12-1770 et

seq., and amendments thereto, if the board of county commissioners or

the board of education levying taxes on such property determines by

resolution adopted within 30 days following the conclusion of the hearing

for the establishment of the redevelopment district required by subsec-

tion (d) (b) that the proposed redevelopment district will have an adverse

effect on such county or school district. The board of county commission-

ers or board of education shall deliver a copy of such resolution to the

city. The city shall within 30 days of receipt of such resolution pass an

ordinance terminating the redevelopment district.

(g) Any redevelopment plan undertaken within the redevelopment

district may be in separate development stages. Each plan shall be

adopted according to the provisions of K.S.A. 12-1772, and amendments

thereto, and shall fix a date for completion. Except as provided herein,

any project shall be completed within 20 years from the date of transmittal

of the redevelopment plan or a revision of the plan, as authorized by

K.S.A. 2000 Supp. 12-1771c, and amendments thereto, to the county

pursuant to K.S.A. 12-1776, and amendments thereto. Projects relating

to environmental investigation and remediation under subsection (i) shall

be completed within 20 years from the date a city enters into a consent

decree agreement with the Kansas department of health and environment

or the United States environmental protection agency. A redevelopment

project in a major tourism area for an auto race track facility described

in subsection (a)(1)(D) of K.S.A. 12-1774, and amendments thereto, shall

be completed within 30 years from the date the secretary of commerce

and housing makes the finding that the redevelopment project will create

a major tourism area pursuant to subsection (a)(1)(D) of K.S.A. 12-1774,

and amendments thereto.

(h) Any increment in ad valorem property taxes resulting from a re-

development district undertaken in accordance with the provisions of this

act, shall be apportioned to a special fund for the payment of the cost of

the redevelopment project, including the payment of principal and inter-

est on any special obligation bonds or full faith and credit tax increment

bonds issued to finance such project pursuant to this act and may be

pledged to the payment of principal and interest on such bonds. The

maximum maturity on bonds issued to finance projects pursuant to this

act shall not exceed 20 years except that: (1) Such maximum period of

special obligation bonds not payable from revenues described by subsec-

tion (a)(1)(D) of K.S.A. 12-1774, and amendments thereto, issued to fi-

nance an auto race track facility shall not exceed 30 years; and (2) such

maximum period, if the governor determines and makes and submits a

finding to the speaker of the house of representatives and the president

of the senate that a maturity greater than 20 years, but in no event ex-

ceeding 30 years, is necessary for the economic feasibility of the financing

of an auto race track facility with special obligation bonds payable pri-

marily from revenues described by subsection (a)(1)(D) of K.S.A. 12-

1774, and amendments thereto, may be extended in accordance with such

determination and finding.

For the purposes of this act, ``increment'' means that amount of ad

valorem taxes collected from real property located within the redevel-

opment district that is in excess of the amount which is produced from

such property and attributable to the assessed valuation of such property

prior to the date the redevelopment plan or revision of the plan, as au-

thorized by K.S.A. 2000 Supp. 12-1771c, and amendments thereto, is

transmitted to the county pursuant to K.S.A. 12-1776, and amendments

thereto.

(i) The governing body of a city, in contracts entered into with the

Kansas department of health and environment or the United States en-

vironmental protection agency, may pledge increments receivable in fu-

ture years to pay costs directly relating to the investigation and remedi-

ation of environmentally contaminated areas. The provisions in such

contracts pertaining to pledging increments in future years shall not be

subject to K.S.A. 10-1101 et seq. or 79-2925 et seq., and amendments

thereto.

(j) Before any redevelopment project is undertaken, a comprehensive

feasibility study, which shows the benefits derived from such project will

exceed the costs and that the income therefrom will be sufficient to pay

for the project shall be prepared. Such feasibility study shall be an open

public record.

(k) If a city determines that revenues from sources other than prop-

erty taxes will be sufficient to pay any special obligation bonds issued to

finance a redevelopment project for an auto race track facility described

in subsection (a)(1)(D) of K.S.A. 12-1774, and amendments thereto,

which the secretary of commerce and housing makes a finding that such

project will create a major tourism area pursuant to subsection (a)(1)(D)

of K.S.A. 12-1774, and amendments thereto, all real and personal prop-

erty, constituting an auto race track facility described in subsection

(a)(1)(D) of K.S.A. 12-1774, and amendments thereto, in such redevel-

opment district shall be exempt from property taxation for a period end-

ing on the earlier of (1) the date which is 30 years after the date of the

finding by the secretary of commerce and housing with respect to such

major tourism area; or (2) the date on which no such special obligation

bonds issued to finance such auto race track facility in a major tourism

area remain outstanding.

(l) Any major tourism area may include an additional area not ex-

ceeding 400 acres of additional property, excluding roads and highways,

in addition to the property necessary for the auto race track facility upon

a finding by the governor that the development plan and each project

within such additional area will enhance the major tourism area. For the

development of each project within such additional area the city shall

select qualified developers pursuant to a request for proposals in accord-

ance with written official procedures approved by the governing body of

the city. Any project within such additional area that is financed in whole

or in part by special obligation bonds payable from revenues derived from

subsection (a)(1)(D) of K.S.A. 12-1774, and amendments thereto, shall

not be entitled to any real property tax abatements or the revenues de-

scribed in K.S.A. 12-1775, and amendments thereto. Any project within

such additional area must be approved by the governor and construction

must be commenced by July 1, 2002. The city shall prepare and submit

annually to the governor, the secretary of commerce and housing and the

legislature by each October 1, commencing October 1, 1999 and contin-

uing until October 1, 2002, a report describing the status of any projects

within such additional area. Any business located in Kansas within 50

miles of a major tourism area that relocates into a major tourism area

shall not receive any of the benefits of K.S.A. 12-1770 et seq., and amend-

ments thereto.

(e) Addition to area; substantial change. Any addition of area to the

redevelopment district or any substantial change as defined in K.S.A. 2000

Supp. 12-1770a, and amendments thereto, to the district plan shall be

subject to the same procedure for public notice and hearing as is required

for the establishment of the district.

(f) Any addition of any area to the redevelopment district shall be

subject to the same procedure for public notice and hearing as is required

for the establishment of the redevelopment district. The base year assessed

valuation of the redevelopment district following the addition of area shall

be revised to reflect the base year assessed valuation of the original area

and the added area as of the date of the original establishment of the

redevelopment district.

(g) A city may remove real property from a redevelopment district

by an ordinance of the governing body. If more than a de minimus amount

of real property is removed from a redevelopment district, the base year

assessed valuation of the redevelopment district shall be revised to reflect

the base year assessed valuation of the remaining real property as of the

date of the original establishment of the redevelopment district.

(h) A city may divide the real property in a redevelopment district,

including real property in different redevelopment project areas within a

redevelopment district, into separate redevelopment districts. The base

year assessed valuation of each resulting redevelopment district following

such division of real property shall be revised to reflect the base year

assessed valuation of the area of each resulting redevelopment district as

of the date of the original establishment of the redevelopment district. Any

division of real property within a redevelopment district into more than

one redevelopment district shall be subject to the same procedure or public

notice and hearing as is required for the establishment of the redevelop-

ment district.

(i) If a city has undertaken a redevelopment project within a rede-

velopment district, and either the city wishes to subsequently remove more

than a de minimus amount of real property from the redevelopment dis-

trict or the city wishes to subsequently divide the real property in the

redevelopment district into more than one redevelopment district, then

prior to any such removal or division the city must provide a feasibility

study which shows that the tax increment revenue from the resulting

redevelopment district within which the redevelopment project is located

is expected to be sufficient to pay the redevelopment project costs.

(j) Removal of real property from one redevelopment district and ad-

dition of all or a portion of that real property to another redevelopment

district may be accomplished by the adoption of an ordinance and in such

event the determination of the existence or nonexistence of an adverse

effect on the county or school district under subsection (d) shall apply to

both such removal and such addition of real property to a redevelopment

district.

Sec. 4. K.S.A. 2000 Supp. 12-1771a is hereby amended to read as

follows: 12-1771a. (a) The governing body of a city may establish an in-

crement in ad valorem taxes using the procedure set forth in subsection

(b) for projects that are initiated upon a finding that the area is a blighted

area under subsection (a)(2) of K.S.A. 12-1771 as defined under K.S.A.

2000 Supp. 12-1770a, and amendments thereto, when the following con-

ditions exist:

(1) The proposed district has been identified by the Kansas depart-

ment of health and environment or the United States environmental pro-

tection agency to be an environmentally contaminated area;

(2) the city has entered into a consent decree or settlement agree-

ment or has taken action expressing an intent to enter into a consent

decree or settlement agreement with the Kansas department of health

and environment or the United States environmental protection agency

that addresses the investigation and remediation of the environmental

contamination;

(3) the consent decree or settlement agreement contains a provision

that has the effect of releasing property owners who are not responsible

for the contamination from the responsibility of paying the response costs

of the investigation and remediation of the contamination; and

(4) the city intends to establish a redevelopment district pursuant to

K.S.A. 12-1771, and amendments thereto, to wholly finance or partially

finance the investigation and remediation of contamination within such

district.

(b) An environmental increment established after a city has found

that the condition in subsection (a)(2) of K.S.A. 12-1771 conditions de-

scribed in subsection (c) of K.S.A. 2000 Supp. 12-1770a, and amendments

thereto, exists shall be set on a yearly basis. For purposes of this section,

a yearly basis shall be a calendar year. Each year's increment shall be an

amount sufficient to pay the direct costs of investigation and remediation

of the contaminated condition anticipated to be incurred that year in-

cluding principal and interest due on any special obligation bonds or full

faith and credit tax increment bonds issued to finance in whole or in part

the remediation and investigation, costs relating to remediation investi-

gation and feasibility studies, operation and maintenance expenses and

other expenses relating directly to the investigation and remediation of

contamination. Each year's environmental increment shall not exceed

20% of the amount of taxes that are produced by all taxing subdivisions

within any currently existing or subsequently created redevelopment dis-

trict area in the year the redevelopment district is first established, not-

withstanding that such subdivision was not required to receive notice of

the establishment of the district.

(c) The budget that establishes the yearly environmental increment

shall be certified by the city to the county clerk and county treasurer no

later than August 25th, preceding the calendar year for which the budget

is being set. Funds derived from an environmental increment established

by this section and interest on all funds derived from an environmental

increment established by this section may be used only for projects in-

volving the investigation and remediation of contamination in the district.

(d) The real property taxes produced by the environmental increment

established under subsection (b) from a redevelopment district estab-

lished under the provisions of K.S.A. 12-1771, and amendments thereto,

and this section shall be allocated and paid by the county treasurer to the

treasurer of the city and deposited in a special separate fund of the city

to pay the direct cost of investigation and remediation of contamination

in the redevelopment district. Any funds collected by the city from parties

determined to be responsible in any manner for the contaminated con-

dition shall be either: (1) Deposited in the same separate special fund

created hereunder, and with all interest earned thereon, may be used

only for projects involving the investigation and remediation of contam-

ination in the established redevelopment district; or (2) distributed to

parties who have entered into a contract with the city to pay a portion of

investigation and remediation of the contamination in the redevelopment

district and the terms of such contract provide that such parties are en-

titled to reimbursement for a portion of funds they have expended for

such investigation and remediation of contamination from the recovery

of costs that are collected from other third party responsible parties.

(e) A redevelopment district created under the provisions of this sec-

tion shall constitute a separate taxing district. If all costs for such inves-

tigation and remediation of contamination in the redevelopment district

have been paid and moneys remain in the special fund, such moneys shall

be remitted to each taxing subdivision which paid moneys into the special

fund on the basis of the proportion which the total amount of moneys

paid by such taxing subdivision into the special fund bears to the total

amount of all moneys paid by all taxing subdivisions into the fund.

(e) (f) Nothing in this section shall prevent any city from establishing

a redevelopment district for other purposes pursuant to K.S.A. 12-1770

et seq., and amendments thereto, which may include part or all of the

real property included in the district established under this section.

(g) Redevelopment projects relating to environmental investigation

and remediation under this section, and amendments thereto, shall be

completed within 20 years from the date a city enters into a consent decree

agreement with the Kansas department of health and environment or the

United States environmental protection agency.

(f) (h) Nothing in this section shall be construed to affect the obli-

gations of the county to annually review the fair market value of property

in accordance with procedures set by law or to affect the right of any

taxpayer to protest and appeal the appraised or reappraised value of their

property in accordance with procedures set forth by law.

(g) (i) Commencing with the regular session of the legislature in 1993,

each city that establishes a redevelopment district under this section shall

make a status report on a biennial basis to the standing committee on

commerce of the senate and the standing committee on economic de-

velopment of the house of representatives during the month of January.

The status report shall contain information on the status of the investi-

gation and remediation of contamination in the redevelopment district.

(j) For the purposes of this act, the governing body of a city, in con-

tracts entered into with the Kansas department of health and environment

or the United States environmental protection agency, may pledge incre-

ments receivable in future years to pay costs directly relating to the in-

vestigation and remediation of environmentally contaminated areas. The

provisions in such contracts pertaining to pledging increments in future

years shall not be subject to K.S.A. 10-1101 et seq. or 79-2925 et seq., and

amendments thereto.

Sec. 5. K.S.A. 2000 Supp. 12-1771d is hereby amended to read as

follows: 12-1771d. The governing body of any municipality may designate

a building within such municipality to be a historic theater if the governing

body of the municipality and the secretary of commerce and housing

agree that the building satisfies the requirements of subsection (a) (i) of

K.S.A. 2000 Supp. 12-1770a, and amendments thereto, and will contribute

significantly to the economic development of the city and surrounding

area.

Sec. 6. K.S.A. 2000 Supp. 12-1771b is hereby amended to read as

follows: 12-1771b. No individual, firm, partnership, association, corpo-

ration or any other entity shall establish or operate any lottery within that

portion of any redevelopment district occupied by a redevelopment pro-

ject that has been found to be of statewide as well as local importance

and to meet the other criteria specified in K.S.A. 12-1774 (a)(1)(D).

(a) The boundaries of any redevelopment district in a major tourism

area including an auto race track facility located in Wyandotte county,

shall, without regard to that portion of the district pertaining to the auto

race track facility, be as follows: Beginning at the intersection of Interstate

70 and Interstate 435; West along Interstate 70 to 118th Street; North

along 118th Street to State Avenue; Northeasterly along proposed relo-

cated State Avenue to 110th Street; North along 110th Street to Parallel

Parkway; East along Parallel Parkway to Interstate 435; South along In-

terstate 435 to Interstate 70.

(b) Any major tourism area may include an additional area not ex-

ceeding 400 acres of additional property, excluding roads and highways,

in addition to the property necessary for the auto race track facility upon

a finding by the governor that the development plan and each project

within such additional area will enhance the major tourism area. For the

development of each project within such additional area the city shall

select qualified developers pursuant to a request for proposals in accord-

ance with written official procedures approved by the governing body of

the city. Any project within such additional area that is financed in whole

or in part by special obligation bonds payable from revenues derived from

subsection (a)(1)(D) of K.S.A. 12-1774, and amendments thereto, shall not

be entitled to any real property tax abatements or the revenues described

in K.S.A. 12-1775, and amendments thereto. Any project within such ad-

ditional area must be approved by the governor and construction must

be commenced by July 1, 2002. The city shall prepare and submit annually

to the governor, the secretary of commerce and housing and the legislature

by each October 1, commencing October 1, 1999, and continuing until

October 1, 2002, a report describing the status of any projects within such

additional area. Any business located in Kansas within 50 miles of a major

tourism area that relocates into a major tourism area shall not receive any

of the benefits of K.S.A. 12-1770 et seq., and amendments thereto.

(c) If a city determines that revenues from sources other than prop-

erty taxes will be sufficient to pay any special obligation bonds issued to

finance a redevelopment project for an auto race track facility as described

in subsection (a) of K.S.A. 2000 Supp. 12-1770a, and amendments thereto,

and the secretary of commerce and housing makes a finding that such

project will create a major tourism area pursuant to subsection (n) of

K.S.A. 2000 Supp. 12-1770a, and amendments thereto, all real and per-

sonal property, constituting an auto race track facility described in sub-

section (a) of K.S.A. 2000 Supp. 12-1770a, and amendments thereto, in

such redevelopment district shall be exempt from property taxation for a

period ending on the earlier of (1) the date which is 30 years after the

date of the finding by the secretary of commerce and housing with respect

to such major tourism area; or (2) the date on which no such special

obligation bonds issued to finance such auto race track facility in a major

tourism area remain outstanding.

(d) The city which is authorized to issue bonds pursuant to the pro-

visions of K.S.A. 12-1770 et seq. in order to finance a redevelopment

project in a major tourism area as defined by K.S.A. 2000 Supp. 12-1770a,

and amendments thereto, shall obtain underwriting services required by

the city for the issuance of such bonds pursuant to written proposals

received in accordance with this section.

(e) Each city which is authorized to issue such bonds shall establish

written official procedures for obtaining underwriting services required

for the issuance of such bonds, including specifications for requests for

proposals and criteria for evaluation of proposals on a competitive basis.

The proposal evaluation criteria shall include factors based on cost, ca-

pacity to provide the required services, qualifications and experience.

(f) Prior to the issuance of any such bonds to finance a redevelopment

project in a major tourism area after the effective date of this act, the city

shall publish notice of a request for proposals to provide the underwriting

services that are required by the city with regard to the proposed bond

issuance and shall mail requests for proposals to qualified interested par-

ties upon request for such notice. The city shall award contracts for such

underwriting services from the proposals received in accordance with the

procedures and evaluation criteria adopted by the city for such purpose.

A city shall publish such notice in the official newspaper of the city.

(g) A redevelopment project in a major tourism area for an auto race

track facility, shall be completed within 30 years from the date the sec-

retary makes the finding that the redevelopment project will create a ma-

jor tourism area pursuant to subsection (n) of K.S.A. 2000 Supp. 12-

1770a, and amendments thereto.

(h) The maximum maturity on bonds issued to finance projects pur-

suant to this act shall not exceed 20 years except that: (1) Such maximum

period of special obligation bonds not payable from revenues described

by subsection (a)(1)(D) of K.S.A. 12-1774, and amendments thereto, is-

sued to finance an auto race track facility shall not exceed 30 years; and

(2) such maximum period, if the governor determines and makes and

submits a finding to the speaker of the house of representatives and the

president of the senate that a maturity greater than 20 years, but in no

event exceeding 30 years, is necessary for the economic feasibility of the

financing of an auto race track facility with special obligation bonds pay-

able primarily from revenues described by subsection (a)(1)(D) of K.S.A.

12-1774, and amendments thereto, may be extended in accordance with

such determination and finding.

Sec. 7. K.S.A. 12-1772 is hereby amended to read as follows: 12-

1772. (a) Any city proposing to undertake a redevelopment project within

a redevelopment district established pursuant to K.S.A. 12-1771, and

amendments thereto, shall prepare a redevelopment plan in consultation

with the planning commission of the city. The redevelopment plan shall

include: (1) A summary of the feasibility study required by K.S.A. 12-

1771, and amendments thereto; (2) a reference to the redevelopment

district plan established under K.S.A. 12-1771, and amendments thereto,

that identifies the redevelopment project area that is set forth in the

comprehensive plan that is being considered; (3) a description and map

of the area to be redeveloped; (4) the relocation assistance plan required

by K.S.A. 12-1777, and amendments thereto; (5) a detailed description

of the buildings and facilities proposed to be constructed or improved in

such area; and (6) any other information the governing body deems nec-

essary to advise the public of the intent of the plan. A copy of the rede-

velopment plan shall be delivered to the board of county commissioners

of the county and the board of education of any school district levying

taxes on property within the proposed redevelopment project area. Upon

a finding by the planning commission that the redevelopment plan is

consistent with the comprehensive general plan for the development of

the city, the governing body of the city shall adopt a resolution stating

that the city is considering the adoption of the plan. Such resolution shall:

(1) Give notice that a public hearing will be held to consider the

adoption of the redevelopment plan and fix the date, hour and place of

such public hearing;

(2) describe the boundaries of the redevelopment district within

which the redevelopment project will be located and the date of estab-

lishment of such district;

(3) describe the boundaries of the area proposed to be included

within the redevelopment project area; and

(4) state that the redevelopment plan, including a summary of the

feasibility study, relocation assistance plan and financial guarantees of the

prospective developer and a description and map of the area to be re-

developed are available for inspection during regular office hours in the

office of the city clerk.

Except as provided in paragraph (3) of subsection (b) of K.S.A. 12-

1774, and amendments thereto, if the governing body determines that it

may issue full faith and credit tax increment bonds to finance the rede-

velopment project, in whole or in part, the resolution also shall include

notice thereof.

(b) The date fixed for the public hearing shall be not less than 30 or

more than 70 days following the date of the adoption of the resolution

fixing the date of the hearing.

(c) A copy of the resolution providing for the public hearing shall be

delivered to the board of county commissioners of the county and the

board of education of any school district levying taxes on property within

the proposed redevelopment project area. Copies also shall be mailed by

certified mail to each owner and occupant of land within the proposed

redevelopment project area not more than 10 days following the date of

the adoption of the resolution. The resolution shall be published once in

the official city newspaper not less than one week or more than two weeks

preceding the date fixed for the public hearing. A sketch clearly deline-

ating the area in sufficient detail to advise the reader of the particular

land proposed to be included within the project area shall be published

with the resolution.

(d) At the public hearing, a representative of the city shall present

the city's proposed redevelopment plan. Following the presentation of

the plan, all interested persons shall be given an opportunity to be heard.

The governing body for good cause shown may recess such hearing to a

time and date certain, which shall be fixed in the presence of persons in

attendance at the hearing.

(e) Following the public hearing, the governing body may adopt the

redevelopment plan by ordinance passed upon a 2/3 vote. Any substantial

changes to the plan as adopted shall be subject to public hearing following

publication of notice thereof at least twice in the official city newspaper.

(a) Redevelopment projects. One or more redevelopment projects may

be undertaken by a city within an established redevelopment district. Any

such project plan may be implemented in separate development stages.

Any city proposing to undertake a redevelopment project within a rede-

velopment district established pursuant to K.S.A. 12-1771, and amend-

ments thereto, shall prepare a project plan in consultation with the plan-

ning commission of the city. The project plan shall include:

(1) A summary of the feasibility study done as defined in K.S.A. 2000

Supp. 12-1770a, and amendments thereto, which will be an open record;

(2) a reference to the district plan established under K.S.A. 12-1771,

and amendments thereto, that identifies the redevelopment project area

that is set forth in the project plan that is being considered;

(3) a description and map of the redevelopment project area to be

redeveloped;

(4) the relocation assistance plan required by K.S.A. 12-1777, and

amendments thereto;

(5) a detailed description of the buildings and facilities proposed to

be constructed or improved in such area; and

(6) any other information the governing body deems necessary to ad-

vise the public of the intent of the project plan.

(b) Resolution requirements. A copy of the redevelopment project

plan shall be delivered to the board of county commissioners of the county

and the board of education of any school district levying taxes on property

within the proposed redevelopment project area. Upon a finding by the

planning commission that the project plan is consistent with the intent of

the comprehensive plan for the development of the city, the governing

body of the city shall adopt a resolution stating that the city is considering

the adoption of the project plan. Such resolution shall:

(1) Give notice that a public hearing will be held to consider the

adoption of the redevelopment project plan and fix the date, hour and

place of such public hearing;

(2) describe the boundaries of the redevelopment district within

which the redevelopment project will be located and the date of establish-

ment of such district;

(3) describe the boundaries of the area proposed to be included within

the redevelopment project area; and

(4) state that the project plan, including a summary of the feasibility

study, relocation assistance plan and financial guarantees of the prospec-

tive developer and a description and map of the area to be redeveloped

are available for inspection during regular office hours in the office of the

city clerk.

Except as provided in paragraph (3) of subsection (b) of K.S.A. 12-

1774, and amendments thereto, if the governing body determines that it

may issue full faith and credit tax increment bonds to finance the rede-

velopment project, in whole or in part, the resolution also shall include

notice thereof.

(c) (1) Hearing. The date fixed for the public hearing shall be not less

than 30 nor more than 70 days following the date of the adoption of the

resolution fixing the date of the hearing.

(2) A copy of the resolution providing for the public hearing shall be

by certified mail, return receipt requested sent to the board of county

commissioners of the county and the board of education of any school

district levying taxes on property within the proposed redevelopment pro-

ject area. Copies also shall be sent by certified mail, return receipt re-

quested to each owner and occupant of land within the proposed rede-

velopment project area not more than 10 days following the date of the

adoption of the resolution. The resolution shall be published once in the

official city newspaper not less than one week nor more than two weeks

preceding the date fixed for the public hearing. A sketch clearly deline-

ating the area in sufficient detail to advise the reader of the particular

land proposed to be included within the project area shall be published

with the resolution.

(3) At the public hearing, a representative of the city shall present the

city's proposed project plan. Following the presentation of the project

plan, all interested persons shall be given an opportunity to be heard. The

governing body for good cause shown may recess such hearing to a time

and date certain, which shall be fixed in the presence of persons in at-

tendance at the hearing.

(d) The public hearing records and feasibility study shall be subject

to the open records act, K.S.A. 45-215, and amendments thereto.

(e) Posthearing procedure. Following the public hearing, the govern-

ing body may adopt the project plan by ordinance passed upon a 2/3 vote.

(f) Any substantial changes as defined in K.S.A. 2000 Supp. 12-1770a,

and amendments thereto, to the project plan as adopted shall be subject

to a public hearing following publication of notice thereof at least twice

in the official city newspaper.

(g) Any project shall be completed within 20 years from the date of

the approval of the project plan.

Sec. 8. K.S.A. 2000 Supp. 12-1773 is hereby amended to read as

follows: 12-1773. (a) Any city which has adopted a redevelopment project

plan in accordance with the provisions of this act may purchase or oth-

erwise acquire real property in connection with such project plan. Upon

a 2/3 vote of the members of the governing body thereof a city may acquire

by condemnation any interest in real property, including a fee simple title

thereto, which it deems necessary for or in connection with any redevel-

opment project plan of an area located within the redevelopment district.

Prior to the exercise of such eminent domain power, the city shall offer

to the owner of any property which will be subject to condemnation with

respect to any redevelopment project, other than one which includes an

auto race track facility, compensation in an amount equal to the highest

appraised valuation amount determined for property tax purposes by the

county appraiser for any of the three most recent years next preceding

the year of condemnation, except that, if in the year next preceding the

year of condemnation any such property had been damaged or destroyed

by fire, flood, tornado, lightning, explosion or other catastrophic event,

the amount offered should be equal to the appraised valuation of the

property which would have been determined taking into account such

damage or destruction unless such property has been restored, renovated

or otherwise improved. However no city shall exercise such eminent do-

main power to acquire real property in a conservation area. Any such city

may exercise the power of eminent domain in the manner provided by

K.S.A. 26-501 et seq., and amendments thereto. In addition to the com-

pensation or damage amount finally awarded thereunder with respect to

any property subject to proceedings thereunder as a result of the con-

struction of an auto race track facility, such city shall provide for the

payment of an amount equal to 25% of such compensation or damage

amount. In addition to any compensation or damages allowed under the

eminent domain procedure act, such city shall also provide for the pay-

ment of relocation assistance as provided in K.S.A. 12-1777, and amend-

ments thereto.

(b) Any property acquired by a city under the provisions of this act

may be sold, transferred or leased to any person, firm or corporation,

hereinafter referred to as a developer, in accordance with the redevel-

opment project plan and under such other conditions as may be agreed

upon. Such city may use the proceeds of special obligation bonds issued

under K.S.A. 12-1774, and amendments thereto, or full faith and credit

tax increment bonds issued under K.S.A. 12-1774, and amendments

thereto, or any uncommitted funds derived from those sources set forth

in paragraph (1) of subsection (a) of K.S.A. 12-1774, and amendments

thereto, to pay the redevelopment project costs as defined in K.S.A. 2000

Supp. 12-1770a, and amendments thereto, to implement the redevelop-

ment project plan including, without limitation:

(1) Acquisition of property within the project area;

(2) payment of relocation assistance;

(3) site preparation;

(4) sanitary and storm sewers and lift stations;

(5) drainage conduits, channels and levees;

(6) street grading, paving, graveling, macadamizing, curbing, gutter-

ing and surfacing;

(7) street lighting fixtures, connection and facilities;

(8) underground gas, water, heating, and electrical services and con-

nections located within the public right-of-way;

(9) sidewalks and pedestrian underpasses or overpasses;

(10) drives and driveway approaches located within public right-of-

way;

(11) water mains and extensions;

(12) plazas and arcades;

(13) parking facilities;

(14) landscaping and plantings; fountains, shelters, benches, sculp-

tures, lighting, decorations and similar amenities; and

(15) all related expenses to redevelop and finance the redevelopment

project. None of the proceeds from the sale of such bonds shall be used

for the construction of buildings or other structures to be owned by or

to be leased to such developer, except for proceeds of such bonds as may

be issued for a redevelopment project which includes an auto race track

facility and except for proceeds of such bonds as may be issued for a

redevelopment district including some or all of the land and buildings

comprising a state mental institution closed pursuant to section 2 of chap-

ter 219 of the 1995 Session Laws of Kansas.

Sec. 9. K.S.A. 2000 Supp. 12-1774 is hereby amended to read as

follows: 12-1774. (a) (1) Any city shall have the power to issue special

obligation bonds in one or more series to finance the undertaking of any

redevelopment project in accordance with the provisions of this act. Such

special obligation bonds shall be made payable, both as to principal and

interest:

(A) From property tax increments allocated to, and paid into a special

fund of the city under the provisions of K.S.A. 12-1775, and amendments

thereto;

(B) from revenues of the city derived from or held in connection with

the undertaking and carrying out of any redevelopment project or projects

under this act including historic theater sales tax increments and envi-

ronmental increments;

(C) from any private sources, contributions or other financial assis-

tance from the state or federal government;

(D) from a pledge of a portion or all of the revenue received by the

city from transient guest, sales and use taxes collected pursuant to K.S.A.

12-1696 et seq., 79-3601 et seq., 79-3701 et seq. and 12-187 et seq., and

amendments thereto, and which are collected from taxpayers doing busi-

ness within that portion of the city's redevelopment district established

pursuant to K.S.A. 12-1771, and amendments thereto, occupied by a re-

development project if there first is a finding by the secretary of com-

merce and housing that the redevelopment project is of statewide as well

as local importance or will create a major tourism area for the state or if

the project is the restoration of a historic theater as defined in subsection

(l) of K.S.A. 2000 Supp. 12-1770a, and amendments thereto. In making a

finding that a redevelopment project is of statewide as well as local im-

portance, the secretary must conclude at least: (i) That capital improve-

ments costing not less than $300,000,000 will be built in the state for such

redevelopment project; and (ii) not less than 1,500 permanent and sea-

sonal employment positions as defined by K.S.A. 74-50,114, and amend-

ments thereto, will be created in the state by such redevelopment project.

In making a finding that a redevelopment project will create a major

tourism area within the state, the secretary must conclude at least: (i)

That capital improvements costing not less than $100,000,000 will be built

in the state to construct a project for such major tourism area; and (ii)

that the project constructed will be an auto race track facility. An auto

race track facility means (i) an auto race facility and facilities directly

related and necessary to the operation of an auto race track facility in-

cluding, but not limited to, grandstands, suites and viewing areas, con-

cessions and souvenir facilities, catering facilities, visitor and retail cen-

ters, signage and temporary hospitality facilities; but excluding (ii) hotels,

motels, restaurants and retail facilities not included in (i);

(E) (i) from a pledge of a portion or all increased revenue received

by the city from franchise fees collected from utilities and other busi-

nesses using public right-of-way within the redevelopment district; (ii)

from a pledge of a portion or all of the revenue received by the city from

sales taxes collected pursuant to K.S.A. 12-187, and amendments thereto;

or

(F) by any combination of these methods.

The city may pledge such revenue to the repayment of such special

obligation bonds prior to, simultaneously with, or subsequent to the is-

suance of such special obligation bonds.

(2) Bonds issued under paragraph (1) of subsection (a) shall not be

general obligations of the city, nor in any event shall they give rise to a

charge against its general credit or taxing powers, or be payable out of

any funds or properties other than any of those set forth in paragraph (1)

of this subsection and such bonds shall so state on their face.

(3) Bonds issued under the provisions of paragraph (1) of this sub-

section shall be special obligations of the city and are declared to be

negotiable instruments. They shall be executed by the mayor and clerk

of the city and sealed with the corporate seal of the city. All details per-

taining to the issuance of such special obligation bonds and terms and

conditions thereof shall be determined by ordinance of the city. All special

obligation bonds issued pursuant to this act and all income or interest

therefrom shall be exempt from all state taxes except inheritance taxes.

Such special obligation bonds shall contain none of the recitals set forth

in K.S.A. 10-112, and amendments thereto. Such special obligation bonds

shall, however, contain the following recitals, viz., the authority under

which such special obligation bonds are issued, they are in conformity

with the provisions, restrictions and limitations thereof, and that such

special obligation bonds and the interest thereon are to be paid from the

money and revenue received as provided in paragraph (1) of this subsec-

tion.

(b) (1) Subject to the provisions of paragraph (2) of this subsection,

any city shall have the power to issue full faith and credit tax increment

bonds to finance the undertaking of any redevelopment project in ac-

cordance with the provisions of K.S.A. 12-1770 et seq., and amendments

thereto other than a project determined by the secretary of commerce

and housing to be of statewide as well as local importance or that will

create a major tourism area as specified in subsection (a)(1)(D) of K.S.A.

12-1774, and amendments thereto or result in the renovation of an his-

toric theater. Such full faith and credit tax increment bonds shall be made

payable, both as to principal and interest: (A) From the revenue sources

identified in paragraph (1)(A), (B), (C), (D) and (E) of subsection (a) or

by any combination of these sources; and (B) subject to the provisions of

paragraph (2) of this subsection, from a pledge of the city's full faith and

credit to use its ad valorem taxing authority for repayment thereof in the

event all other authorized sources of revenue are not sufficient.

(2) Except as provided in paragraph (3) of this subsection, before the

governing body of any city proposes to issue full faith and credit tax in-

crement bonds as authorized by this subsection, the feasibility study re-

quired by K.S.A. 12-1771 12-1772, and amendments thereto, shall dem-

onstrate that the benefits derived from the project will exceed the cost

and that the income therefrom will be sufficient to pay the costs of the

project. No full faith and credit tax increment bonds shall be issued unless

the governing body states in the resolution required by K.S.A. 12-1772,

and amendments thereto, that it may issue such bonds to finance the

proposed redevelopment project. The governing body may issue the

bonds unless within 60 days following the date of the public hearing on

the proposed redevelopment project plan a protest petition signed by 3%

of the qualified voters of the city is filed with the city clerk in accordance

with the provisions of K.S.A. 25-3601 et seq., and amendments thereto.

If a sufficient petition is filed, no full faith and credit tax increment bonds

shall be issued until the issuance of the bonds is approved by a majority

of the voters voting at an election thereon. Such election shall be called

and held in the manner provided by the general bond law. The failure of

the voters to approve the issuance of full faith and credit tax increment

bonds shall not prevent the city from issuing special obligation bonds in

accordance with K.S.A. 12-1774, and amendments thereto. No such elec-

tion shall be held in the event the board of county commissioners or the

board of education determines, as provided in K.S.A. 12-1771, and

amendments thereto, that the proposed redevelopment district will have

an adverse effect on the county or school district.

(3) As an alternative to paragraph (2) of this subsection, any city which

adopts a redevelopment project plan but does not state its intent to issue

full faith and credit tax increment bonds in the resolution required by

K.S.A. 12-1772, and amendments thereto, and has not acquired property

in the redevelopment project area may issue full faith and credit tax in-

crement bonds if the governing body of the city adopts a resolution stating

its intent to issue the bonds and the issuance of the bonds is approved by

a majority of the voters voting at an election thereon. Such election shall

be called and held in the manner provided by the general bond law. The

failure of the voters to approve the issuance of full faith and credit tax

increment bonds shall not prevent the city from issuing special obligation

bonds pursuant to paragraph (1) of subsection (a). Any redevelopment

project plan adopted by a city prior to the effective date of this act in

accordance with K.S.A. 12-1772, and amendments thereto, shall not be

invalidated by any requirements of this act.

(4) During the progress of any redevelopment project in which the

city's costs redevelopment project costs will be financed, in whole or in

part, with the proceeds of full faith and credit tax increment bonds, the

city may issue temporary notes in the manner provided in K.S.A. 10-123,

and amendments thereto, to pay the city's cost redevelopment project

costs for the project. Such temporary notes shall not be issued and the

city shall not acquire property in the redevelopment project area until

the requirements of paragraph (2) or (3) of this subsection, whichever is

applicable, have been met.

(5) Full faith and credit tax increment bonds issued under this sub-

section shall be general obligations of the city and are declared to be

negotiable instruments. They shall be issued in accordance with the gen-

eral bond law. All such bonds and all income or interest therefrom shall

be exempt from all state taxes except inheritance taxes. The amount of

the full faith and credit tax increment bonds issued and outstanding which

exceeds 3% of the assessed valuation of the city shall be within the bonded

debt limit applicable to such city.

(6) Any city issuing special obligation bonds under the provisions of

this act may refund all or part of such issue pursuant to the provisions of

K.S.A. 10-116a, and amendments thereto.

(c) Any increment in ad valorem property taxes resulting from a re-

development project in the established redevelopment district undertaken

in accordance with the provisions of this act, shall be apportioned to a

special fund for the payment of the redevelopment project costs, including

the payment of principal and interest on any special obligation bonds or

full faith and credit tax increment bonds issued to finance such project

pursuant to this act and may be pledged to the payment of principal and

interest on such bonds.

Sec. 10. K.S.A. 2000 Supp. 12-1774a is hereby amended to read as

follows: 12-1774a. (a) In the event that the city shall default in the pay-

ment of any special obligation bonds as authorized pursuant to K.S.A. 12-

1774 (a)(1)(D) subsection (a)(1)(D) of K.S.A. 12-1774, and amendments

thereto, no public funds shall be used to pay the holders thereof except

as otherwise specifically authorized in this act.

(b) No property abutting the site of a redevelopment project deter-

mined by the secretary of commerce and housing to be of statewide as

well as local importance and to meet the other criteria specified by K.S.A.

12-1774 (a)(1)(D), and amendments thereto, or property abutting any

public infrastructure constructed to support such redevelopment project,

shall be assessed for any infrastructure construction in connection with

such project unless it is determined that such abutting property is spe-

cifically benefited thereby.

Sec. 11. K.S.A. 2000 Supp. 12-1775 is hereby amended to read as

follows: 12-1775. (a) For the purposes of this act:

(1) ``Taxing subdivision'' means the county, the city, the unified

school district and any other taxing subdivision levying real property taxes,

the territory or jurisdiction of which includes any currently existing or

subsequently created redevelopment district; and

(2) ``real property taxes'' means all taxes levied on an ad valorem basis

upon land and improvements thereon.

(b) (a) Except for redevelopment projects satisfying the conditions of

subsection (k) (c) of K.S.A. 12-1771 2000 Supp. 12-1771b, and amend-

ments thereto, all tangible taxable property located within a redevelop-

ment district shall be assessed and taxed for ad valorem tax purposes

pursuant to law in the same manner that such property would be assessed

and taxed if located outside such district, and all ad valorem taxes levied

on such property shall be paid to and collected by the county treasurer

in the same manner as other taxes are paid and collected. Except as

otherwise provided in this section, the county treasurer shall distribute

such taxes as may be collected in the same manner as if such property

were located outside a redevelopment district. Each redevelopment dis-

trict established under the provisions of this act shall constitute a separate

taxing unit for the purpose of the computation and levy of taxes.

(c) (b) Except for redevelopment projects satisfying the conditions of

subsection (k) of K.S.A. 12-1771 (c) of K.S.A. 2000 Supp. 12-1771b, and

amendments thereto, beginning with the first payment of taxes which are

levied following the date of the redevelopment plan or revision of the

plan, as authorized by K.S.A. 2000 Supp. 12-1771c, and amendments

thereto, to the county pursuant to K.S.A. 12-1776, and amendments

thereto, establishment of the redevelopment district real property taxes

received by the county treasurer resulting from taxes which are levied

subject to the provisions of this act by and for the benefit of a taxing

subdivision, as herein defined in K.S.A. 2000 Supp. 12-1770a, on property

located within such redevelopment district constituting a separate taxing

unit under the provisions of this section, shall be divided as follows:

(1) From the taxes levied each year subject to the provisions of this

act by or for each of the taxing subdivisions upon property located within

a redevelopment district constituting a separate taxing unit under the

provisions of this act, the county treasurer first shall allocate and pay to

each such taxing subdivision all of the real property taxes collected which

are produced from that portion of the current assessed valuation of such

real property located within such separate taxing unit which is equal to

the total assessed value of such real property on the date of the estab-

lishment of the redevelopment district the base year assessed valuation.

(2) Any real property taxes produced from that portion of the current

assessed valuation of real property within the redevelopment district con-

stituting a separate taxing unit under the provisions of this section in

excess of an amount equal to the total assessed value of such real property

on January 1 in the year preceding transmittal of the redevelopment plan

or a revision of the plan, as authorized by K.S.A. 2000 Supp. 12-1771c,

and amendments thereto, to the county pursuant to K.S.A. 12-1776, and

amendments thereto, the base year assessed valuation shall be allocated

and paid by the county treasurer to the treasurer of the city and deposited

in a special fund of the city to pay the cost of redevelopment projects

redevelopment project costs including the payment of principal of and

interest on any special obligation bonds or full faith and credit tax incre-

ment bonds issued by such city to finance, in whole or in part, such

redevelopment project. When the redevelopment project costs have been

paid and such obligation bonds and interest thereon have been paid, all

moneys thereafter received from real property taxes within such rede-

velopment district shall be allocated and paid to the respective taxing

subdivisions in the same manner as are other ad valorem taxes. If such

obligation bonds and interest thereon have been paid before the comple-

tion of a project, the city may continue to use such moneys for any pur-

pose authorized by this act until such time as the project is completed,

but for not to exceed 20 years from the date of the transmittal to the

county of the redevelopment plan or a revision of the plan as authorized

by K.S.A. 2000 Supp. 12-1771c, and amendments thereto approval of the

project plan, except as otherwise provided by this act.

(d) (c) In any redevelopment project plan or in the proceedings for

the issuing of any special obligation bonds or full faith and credit tax

increment bonds by the city to finance a redevelopment project, the prop-

erty tax increment portion of taxes provided for in paragraph (2) of sub-

section (c) may be irrevocably pledged for the payment of the principal

of and interest on such obligation bonds, subject to the provisions of

subsection (h) (c) of K.S.A. 12-1771 12-1774, and amendments thereto.

(d) A city may adopt a redevelopment project plan in which only a

specified percentage or amount of the tax increment realized from tax-

payers in the redevelopment district are pledged to the redevelopment

project. The county treasurer shall allocate the specified percentage or

amount of the tax increment to the treasurer of the city for deposit in the

special fund of the city to finance the cost of redevelopment projects

redevelopment project costs if the city has other available revenues and

pledges the revenues to the redevelopment project in lieu of the tax in-

crement. Any portion of such tax increment not allocated to the city for

the redevelopment project shall be allocated and paid in the same manner

as other ad valorem taxes.

Sec. 12. K.S.A. 2000 Supp. 12-1776 is hereby amended to read as

follows: 12-1776. (a) After the adoption by the city governing body of a

redevelopment project plan which contains the provisions authorized by

K.S.A. 12-1775, and amendments thereto, the clerk of the city shall trans-

mit a copy of the description of the land within the redevelopment dis-

trict, a copy of the ordinance adopting the plan and a map or plat indi-

cating the boundaries of the district to the clerk, assessor and treasurer

of the county in which the district is located and to the governing bodies

of the county and school district which levy taxes upon any property in

the district. Such documents shall be transmitted following the adoption

or modification of the plan or a revision of the plan, as authorized by

K.S.A. 2000 Supp. 12-1771c, on or before the January 1 of the year in

which the increment is first allocated to the taxing subdivision pursuant

to K.S.A. 12-1775, and amendments thereto.

(b) For any year in which taxes are to be paid to the special fund

established under subsection (c)(2) of K.S.A. 12-1775, and amendments

thereto, any increase in assessed valuation of taxable tangible real prop-

erty within the redevelopment district in excess of an amount equal to

the total assessed value of such real property on the date of the estab-

lishment of the redevelopment district shall not be considered by any

taxing subdivision in computing any debt limitation or for any other pur-

pose except for the levy of taxes and in determining the amount to be

paid to such special fund.

(c) The appraiser of any county in which a redevelopment district is

authorized by a city shall certify the amount of such increase in assessed

valuation of real and personal property within the redevelopment district

to the county clerk on or before July 1 of each year.

Sec. 13. K.S.A. 12-17,104 is hereby amended to read as follows: 12-

17,104. The governing body of the city, on behalf of the district, shall

have the right to acquire real and personal property by gift, purchase,

exchange or eminent domain, as provided by K.S.A. 26-501 to 26-516,

inclusive, and amendments thereto, provided that the governing body

may exercise the power of eminent domain only under the following con-

ditions:

(1) Acquisition of the land and personal property is in the public

interest and is needed to further the improvement or redevelopment

proposal of an existing self-supported municipal improvement district un-

der this act.

(2) The proposal has been reviewed by the appropriate planning com-

mission for conformance with the comprehensive plan of the city.

(3) The city has complied with K.S.A. 75-2714 to 75-2725, inclusive,

and amendments thereto, and has received written approval of the state

historical society as provided by K.S.A. 75-2714, and amendments

thereto.

(4) The city has complied with provisions of K.S.A. 12-1771 and 12-

1772, and amendments thereto, have been complied with except as the

same relate to findings of a blighted area.

(5) The procedures for a public hearing, notification to affected prop-

erty owners and the right of appeal shall be the same as provided in

subsections (d) and (e) of K.S.A. 12-1796 and 12-1797, and amendments

thereto.

Upon the dissolution of the district or according to the district proposal

as adopted or amended, and the retirement of all bonded indebtedness

against the property, all property of the district shall become the property

of the city and the city may trade or exchange or sell this property in the

same manner as provided in K.S.A. 12-1301, and amendments thereto.

The proceeds from such sale may be used for another public purpose.

Sec. 14. K.S.A. 2000 Supp. 19-101a is hereby amended to read as

follows: 19-101a. (a) The board of county commissioners may transact all

county business and perform all powers of local legislation and adminis-

tration it deems appropriate, subject only to the following limitations,

restrictions or prohibitions:

(1) Counties shall be subject to all acts of the legislature which apply

uniformly to all counties.

(2) Counties may not consolidate or alter county boundaries.

(3) Counties may not affect the courts located therein.

(4) Counties shall be subject to acts of the legislature prescribing

limits of indebtedness.

(5) In the exercise of powers of local legislation and administration

authorized under provisions of this section, the home rule power con-

ferred on cities to determine their local affairs and government shall not

be superseded or impaired without the consent of the governing body of

each city within a county which may be affected.

(6) Counties may not legislate on social welfare administered under

state law enacted pursuant to or in conformity with public law No. 271--

74th congress, or amendments thereof.

(7) Counties shall be subject to all acts of the legislature concerning

elections, election commissioners and officers and their duties as such

officers and the election of county officers.

(8) Counties shall be subject to the limitations and prohibitions im-

posed under K.S.A. 12-187 to 12-195, inclusive, and amendments thereto,

prescribing limitations upon the levy of retailers' sales taxes by counties.

(9) Counties may not exempt from or effect changes in statutes made

nonuniform in application solely by reason of authorizing exceptions for

counties having adopted a charter for county government.

(10) No county may levy ad valorem taxes under the authority of this

section upon real property located within any redevelopment project area

established under the authority of K.S.A. 12-1772, and amendments

thereto, unless the resolution authorizing the same specifically authorized

a portion of the proceeds of such levy to be used to pay the principal of

and interest upon bonds issued by a city under the authority of K.S.A.

12-1774, and amendments thereto.

(11) Counties shall have no power under this section to exempt from

any statute authorizing or requiring the levy of taxes and providing sub-

stitute and additional provisions on the same subject, unless the resolution

authorizing the same specifically provides for a portion of the proceeds

of such levy to be used to pay a portion of the principal and interest on

bonds issued by cities under the authority of K.S.A. 12-1774, and amend-

ments thereto.

(12) Counties may not exempt from or effect changes in the provi-

sions of K.S.A. 19-4601 through 19-4625, and amendments thereto.

(13) Except as otherwise specifically authorized by K.S.A. 12-1,101

through 12-1,109, and amendments thereto, counties may not levy and

collect taxes on incomes from whatever source derived.

(14) Counties may not exempt from or effect changes in K.S.A. 19-

430, and amendments thereto.

(15) Counties may not exempt from or effect changes in K.S.A. 19-

302, 19-502b, 19-503, 19-805 or 19-1202, and amendments thereto.

(16) (A) Counties may not exempt from or effect changes in K.S.A.

13-13a26, and amendments thereto.

(B) This provision shall expire on June 30, 2003.

(17) (A) Counties may not exempt from or effect changes in K.S.A.

2000 Supp. 71-301a, and amendments thereto.

(B) This provision shall expire on June 30, 2003.

(18) Counties may not exempt from or effect changes in K.S.A. 19-

15,139, 19-15,140 and 19-15,141, and amendments thereto.

(19) Counties may not exempt from or effect changes in the provi-

sions of K.S.A. 12-1223, 12-1225, 12-1225a, 12-1225b, 12-1225c and 12-

1226, and amendments thereto, or the provisions of K.S.A. 2000 Supp.

12-1260 through 12-1270 and 12-1276, and amendments thereto.

(20) Counties may not exempt from or effect changes in the provi-

sions of K.S.A. 19-211, and amendments thereto.

(21) Counties may not exempt from or effect changes in the provi-

sions of K.S.A. 19-4001 through 19-4015, and amendments thereto.

(22) Counties may not regulate the production or drilling of any oil

or gas well in any manner which would result in the duplication of reg-

ulation by the state corporation commission and the Kansas department

of health and environment pursuant to chapter 55 and chapter 65 of the

Kansas Statutes Annotated and any rules and regulations adopted pur-

suant thereto. Counties may not require any license or permit for the

drilling or production of oil and gas wells. Counties may not impose any

fee or charge for the drilling or production of any oil or gas well.

(23) Counties may not exempt from or effect changes in K.S.A. 79-

41a04, and amendments thereto.

(24) Counties may not exempt from or effect changes in K.S.A. 79-

1611, and amendments thereto.

(25) Counties may not exempt from or effect changes in K.S.A. 79-

1494, and amendments thereto.

(26) Counties may not exempt from or effect changes in subsection

(b) of K.S.A. 19-202, and amendments thereto.

(27) Counties may not exempt from or effect changes in subsection

(b) of K.S.A. 19-204, and amendments thereto.

(28) Counties may not levy or impose an excise, severance or any

other tax in the nature of an excise tax upon the physical severance and

production of any mineral or other material from the earth or water.

(29) Counties may not exempt from or effect changes in K.S.A. 79-

2017 or 79-2101, and amendments thereto.

(30) Counties may not exempt from or effect changes in K.S.A. 2-

3302, 2-3305, 2-3307, 17-5904, 17-5908, 47-1219 or 65-171d or K.S.A.

2000 Supp. 2-3318, 17-5909 or 65-1,178 through 65-1,199, and amend-

ments thereto.

(31) Counties may not exempt from or effect changes in K.S.A. 2000

Supp. 80-121, and amendments thereto.

(b) Counties shall apply the powers of local legislation granted in

subsection (a) by resolution of the board of county commissioners. If no

statutory authority exists for such local legislation other than that set forth

in subsection (a) and the local legislation proposed under the authority

of such subsection is not contrary to any act of the legislature, such local

legislation shall become effective upon passage of a resolution of the

board and publication in the official county newspaper. If the legislation

proposed by the board under authority of subsection (a) is contrary to an

act of the legislature which is applicable to the particular county but not

uniformly applicable to all counties, such legislation shall become effec-

tive by passage of a charter resolution in the manner provided in K.S.A.

19-101b, and amendments thereto.

(c) Any resolution adopted by a county which conflicts with the re-

strictions in subsection (a) is null and void.

Sec. 15. K.S.A. 2000 Supp. 74-5093 is hereby amended to read as

follows: 74-5093. As used in this act:

(a) ``Blighted area'' has the meaning ascribed to it in K.S.A. 12-1771

2000 Supp. 12-1770a, and amendments thereto;

(b) ``committee'' means the community strategic planning grant com-

mittee established by K.S.A. 74-5095 and amendments thereto;

(c) ``metropolitan county'' means the county of Douglas, Johnson,

Leavenworth, Sedgwick, Shawnee or Wyandotte;

(d) ``neighborhood revitalization organization'' means any group or-

ganized for the purpose of encouraging economic development in a

blighted area of a metropolitan county; and

(e) ``nonmetropolitan county'' means any county which is not a met-

ropolitan county.

Sec. 16. K.S.A. 2000 Supp. 79-3620, as amended by section 460 of

2001 Senate Bill No. 15, is hereby amended to read as follows: 79-3620.

(a) All revenue collected or received by the director of taxation from the

taxes imposed by this act shall be remitted to the state treasurer in ac-

cordance with the provisions of K.S.A. 75-4215, and amendments thereto.

Upon receipt of each such remittance, the state treasurer shall deposit

the entire amount in the state treasury, less amounts withheld as provided

in subsection (b) and amounts credited as provided in subsection (c) and

(d), to the credit of the state general fund.

(b) A refund fund, designated as ``sales tax refund fund'' not to exceed

$100,000 shall be set apart and maintained by the director from sales tax

collections and estimated tax collections and held by the state treasurer

for prompt payment of all sales tax refunds including refunds authorized

under the provisions of K.S.A. 79-3635, and amendments thereto. Such

fund shall be in such amount, within the limit set by this section, as the

director shall determine is necessary to meet current refunding require-

ments under this act. In the event such fund as established by this section

is, at any time, insufficient to provide for the payment of refunds due

claimants thereof, the director shall certify the amount of additional funds

required to the director of accounts and reports who shall promptly trans-

fer the required amount from the state general fund to the sales tax refund

fund, and notify the state treasurer, who shall make proper entry in the

records.

(c) The state treasurer shall credit 5/98 of the revenue collected or

received from the tax imposed by K.S.A. 79-3603, and amendments

thereto, at the rate of 4.9%, and deposited as provided in subsection (a),

exclusive of amounts credited pursuant to subsection (d), in the state

highway fund.

(d) The state treasurer shall credit all revenue collected or received

from the tax imposed by K.S.A. 79-3603, and amendments thereto, as

certified by the director, from taxpayers doing business within that por-

tion of a redevelopment district occupied by a redevelopment project that

was determined by the secretary of commerce and housing to be of state-

wide as well as local importance or will create a major tourism area for

the state as specified in subsection (a)(1)(D) of K.S.A. 12-1774 defined

in K.S.A. 2000 Supp. 12-1770a, and amendments thereto, to the city bond

finance fund, which fund is hereby created. The provisions of this sub-

section shall expire when the total of all amounts credited hereunder and

under subsection (d) of K.S.A. 79-3710, and amendments thereto, is suf-

ficient to retire the special obligation bonds issued for the purpose of

financing all or a portion of the costs of such redevelopment project.

Sec. 17. K.S.A. 2000 Supp. 79-3620b is hereby amended to read as

follows: 79-3620b. Moneys credited to the city bond finance fund in ac-

cordance with the provisions of subsections (d) of K.S.A. 79-3620 and (d)

of K.S.A. 79-3710, and amendments thereto, shall be distributed bian-

nually to cities which have issued special obligation bonds to finance, in

whole or in part, a redevelopment project which was determined by the

secretary of commerce and housing to be of statewide as well as local

importance or will create a major tourism area for the state as specified

in subsection (a)(1)(D) of K.S.A. 12-1774 defined in K.S.A. 2000 Supp.

12-1770a, and amendments thereto. The state treasurer shall make such

biannual distributions on such dates as mutually agreed to by the city and

the state treasurer. The total of all distributions under this section shall

not exceed an amount determined to be sufficient to retire the principal

and interest payable on such special obligation bonds. Moneys paid to

cities hereunder shall be deposited in a special fund of the city to pay the

costs described herein.

Sec. 18. K.S.A. 2000 Supp. 79-3710, as amended by section 461 of

2001 Senate Bill No. 15, is hereby amended to read as follows: 79-3710.

(a) All revenue collected or received by the director under the provisions

of this act shall be remitted to the state treasurer in accordance with the

provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of

each such remittance, the state treasurer shall deposit the entire amount

in the state treasury, less amounts set apart as provided in subsection (b)

and amounts credited as provided in subsection (c) and (d), to the credit

of the state general fund.

(b) A revolving fund, designated as ``compensating tax refund fund''

not to exceed $10,000 shall be set apart and maintained by the director

from compensating tax collections and estimated tax collections and held

by the state treasurer for prompt payment of all compensating tax refunds.

Such fund shall be in such amount, within the limit set by this section,

as the director shall determine is necessary to meet current refunding

requirements under this act.

(c) The state treasurer shall credit 5/98 of the revenue collected or

received from the tax imposed by K.S.A. 79-3703, and amendments

thereto, at the rate of 4.9%, and deposited as provided in subsection (a),

exclusive of amounts credited pursuant to subsection (d), in the state

highway fund.

(d) The state treasurer shall credit all revenue collected or received

from the tax imposed by K.S.A. 79-3703, and amendments thereto, as

certified by the director, from taxpayers doing business within that por-

tion of a redevelopment district occupied by a redevelopment project that

was determined by the secretary of commerce and housing to be of state-

wide as well as local importance or will create a major tourism area for

the state as specified in subsection (a)(1)(D) of K.S.A. 12-1774, defined

in K.S.A. 2000 Supp. 12-1770a, and amendments thereto, to the city bond

finance fund created by subsection (d) of K.S.A. 79-3620, and amend-

ments thereto. The provisions of this subsection shall expire when the

total of all amounts credited hereunder and under subsection (d) of K.S.A.

79-3620, and amendments thereto, is sufficient to retire the special ob-

ligation bonds issued for the purpose of financing all or a portion of the

costs of such redevelopment project.

New Sec. 19. The provisions of this act shall be applicable to rede-

velopment districts created after July 1, 2001, however, any city which

has created a redevelopment district prior to the effective date of this act

may, by an ordinance of the governing body, elect to have the provisions

of this act apply to such.

Sec. 20. K.S.A. 12-1772 and 12-17,104 and K.S.A. 2000 Supp. 12-

1770, 12-1770a, 12-1771, 12-1771a, 12-1771b, 12-1771c, 12-1771d, 12-

1773, 12-1774, 12-1774a, 12-1774b, 12-1775, 12-1776, 19-101a, 74-5093,

79-3620, as amended by section 460 of 2001 Senate Bill No. 15, 79-3620b

and 79-3710, as amended by section 461 of 2001 Senate Bill No. 15, are

hereby repealed.

Sec. 21. This act shall take effect and be in force from and after its

publication in the Kansas register.

Approved April 16, 2000.

Published in the Kansas Register April 26, 2000.


__________




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