Session Law

Identifying Information:L. 2003 ch. 025
Other Identifying Information:2003 Senate Bill 4
Tax Type:Other
Brief Description:(Amended by Chapter 139)An Act concerning the cash-basis law; relating to exemptions therefrom; amending K.S.A. 10-1102 and 10-1116a and repealing the existing sections.
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Body:

CHAPTER 25

SENATE BILL No. 4

(Amended by Chapter 139)


An Act concerning the cash-basis law; relating to exemptions therefrom; amending K.S.A.

10-1102 and 10-1116a and repealing the existing sections.

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

Section 1. K.S.A. 10-1102 is hereby amended to read as follows: 10-

1102. (a) K.S.A. 10-1101 through 10-1122, and amendments thereto, shall

be known and may be cited as the cash-basis law.

(b) All municipalities are required to pay or refinance their valid in-

debtedness as in this act provided in the cash-basis law, in the manner

and at the times herein set forth, and to contract no indebtedness after

May 1, 1933, except as herein provided by the cash-basis law. It is hereby

declared that the purpose of this act is to provide for the funding and

payment of all legal debts and obligations except present bonded indebt-

edness of all municipalities and for the future conduct of the financial

affairs of such municipality upon a cash basis.

Sec. 2. K.S.A. 10-1116a is hereby amended to read as follows: 10-

1116a. The provisions of this act limitations on expenditures imposed un-

der the cash-basis law shall not apply to:

(a) Expenditures in excess of current revenues made for municipally

owned and operated utilities out of the fund of such utilities caused by,

or resulting from the meeting of, extraordinary emergencies including

drought emergencies. In such cases expenditures in excess of current

revenues may be made by declaring an extraordinary emergency by res-

olution adopted by the governing body and such resolution shall be pub-

lished at least once in a newspaper of general circulation in such city.

Thereupon, such governing body may issue interest bearing no-fund war-

rants on such utility fund in an amount, including outstanding previously

issued no-fund warrants, not to exceed 25% of the revenues from sales

of service of such utility for the preceding year. Such warrants shall be

redeemed within three years from date of issuance and shall bear interest

at a rate of not to exceed the maximum rate of interest prescribed by

K.S.A. 10-1009, and amendments thereto. Upon the declaration of a

drought emergency, the governing body may issue such warrants for wa-

ter system improvement purposes in an amount not to exceed 50% of the

revenue received from the sale of water for the preceding year. Such

warrants shall be redeemed within five years from the date of issuance

and shall bear interest at a rate not to exceed the maximum rate of interest

prescribed by K.S.A. 10-1009, and amendments thereto.

(b) Expenditures by school districts which are in excess of current

revenues if the deficit or shortage in revenues is caused by, or a result of,

the late distribution of state aid under K.S.A. 72-6417, and amendments

thereto.

The provisions of this subsection shall apply to expenditures made in

school year 2001-2002, school year 2002-2003, school year 2003-2004,

school year 2004-2005, school year 2005-2006 and school year 2006-2007.

Sec. 3. K.S.A. 10-1102 and 10-1116a are hereby repealed.

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

publication in the Kansas register.

Approved April 1, 2002.

Published in the Kansas Register April 10, 2002.


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Date Composed: 10/29/2003 Date Modified: 10/29/2003