Session Law

Identifying Information:L. 2002 ch. 105
Other Identifying Information:2002 House Bill 2949
Tax Type:Other
Brief Description:An Act concerning cities and counties; relating to transportation development districts;amending K.S.A. 12-194 and 25-432 and repealing the existing sections.
Keywords:


Body:

CHAPTER 105

HOUSE BILL No. 2949

An Act concerning cities and counties; relating to transportation development districts;

amending K.S.A. 12-194 and 25-432 and repealing the existing sections.


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

New Section 1. (a) This section and sections 2 through 9, and amend-

ments thereto, shall be known and may be cited as the transportation

development district act.

(b) The powers conferred by this act are for public uses and purposes

for which public money may be expended.

New Sec. 2. As used in this act:

(a) ``Acquire'' means the acquisition of property or interests in prop-

erty by purchase, gift, condemnation or other lawful means and may in-

clude the acquisition of existing property and projects already owned by

a municipality.

(b) ``Bonds'' means special obligation bonds or special obligation

notes payable solely from the sources described in section 7, and amend-

ments thereto, issued by a municipality in accordance with the provisions

of this act.

(c) ``Consultant'' means engineers, architects, planners, attorneys and

other persons deemed competent to advise and assist the governing body

in planning and making of projects.

(d) ``Cost'' means (1) all costs necessarily incurred for the preparation

of preliminary reports, the preparation of plans and specifications, the

preparation and publication of notices of hearings, resolutions, ordinances

and other proceedings, necessary fees and expenses of consultants and

interest accrued on borrowed money during the period of construction

together with the cost of land, materials, labor and other lawful expenses

incurred in planning and doing any project and may include a charge of

not to exceed 5% of the total cost of a project or the cost of work done

by the municipality to reimburse the municipality for the services ren-

dered by the municipality in the administration and supervision of such

project by its general officers; and (2) in the case of property and projects

already owned by the municipality and previously financed by the issu-

ance of revenue bonds, ``cost'' means the principal amount of such out-

standing revenue bonds plus the amount of matured interest, interest

maturing within 90 days, plus the amount of any call premium or purchase

premium required.

(e) ``District'' means a transportation development district created

pursuant to this act.

(f) ``Governing body'' means the governing body of a city or the board

of county commissioners of a county.

(g) ``Municipality'' means any city or county.

(h) ``Newspaper'' means the official newspaper of the municipality.

(i) ``Project'' means any project or undertaking to improve any bridge,

street, road, highway access road, interchange, intersection, signing, sig-

nalization, parking lot, bus stop, station, garage, terminal, hangar, shelter,

rest area, dock, wharf, lake or river port, airport, railroad, light rail or

other mass transit facility and any similar or related project or infrastruc-

ture.

(j) ``Transportation district excise tax'' means the tax authorized by

section 6, and amendments thereto.

(k) ``To improve'' means to construct, reconstruct, maintain, restore,

replace, renew, repair, install, furnish, equip or extend any project.

New Sec. 3. (a) In addition to any other power provided by law and

as a complete alternative to all other methods provided by law, the gov-

erning body of any municipality may create a transportation development

district as provided by this act for the purpose of financing projects. A

municipality may create a district upon receipt of a petition signed by the

owners of record, whether resident or not, of all of the land area within

the proposed district. The petition shall contain:

(1) The general nature of the proposed project;

(2) the estimated cost of the project;

(3) the proposed method of financing the district;

(4) the proposed method of assessment;

(5) the proposed amount of any sales tax; and

(6) a map or boundary description of the proposed district.

(b) Names may not be withdrawn from the petitions by the signers

thereof after the governing body commences consideration of the peti-

tions or later than seven days after such filing, whichever occurs first, and

the petitions shall contain a notice that the names of the signers may not

be withdrawn after such a period of time.

(c) The district boundaries and the method of financing for the pro-

ject shall not require that all property that is benefited by the project be

included in the district or be subject to an assessment or the transpor-

tation district excise tax.

New Sec. 4. (a) Before the creation of any district, the governing

body, by resolution, shall call and hold a public hearing on the advisability

of the creating of the district and the financing of the project. Notice of

the hearing shall be given by at least one publication in a newspaper and

by certified mail to all property owners within the proposed district. The

notice shall be published at least seven days prior to the date of hearing

and the certified mailed notice shall be sent at least 10 days prior to the

date of hearing. Such notice shall contain the following information:

(1) Time and place of hearing;

(2) general nature of the proposed project;

(3) the estimated cost of the project;

(4) the proposed method of financing of the project;

(5) the proposed amount of assessments and the method of assess-

ment;

(6) the proposed amount of any transportation district excise tax; and

(7) a map or boundary description of the proposed district.

(b) The hearing may be adjourned from time to time. Following the

hearing or any continuation thereof, the governing body may create the

district, authorize the project and approve the estimated cost of the pro-

ject, the boundaries of the district, the method of financing and the

method of assessments, if any, by adoption of the appropriate ordinance

or resolution.

(c) The area of the district to be assessed may be less than, but shall

not exceed, the area proposed to be assessed as stated in the notice of

hearing without giving notice and holding a new hearing on the project.

(d) Nothing in this section shall be construed as authorizing the im-

position of a transportation district excise tax until authorized as provided

by section 6, and amendments thereto.

New Sec. 5. In addition to any other power provided by law and as

a complete alternative to all other methods provided by law, the governing

body may make, or cause to be made, projects which confer a special

benefit upon property within the district and may levy and collect special

assessments upon property in the district and provide for the payment of

all or any part of the cost of the project out of the proceeds of such special

assessments. If special assessments will be levied to finance all or a portion

of the cost of a project, the municipality shall follow the assessment pro-

cedures in K.S.A. 12-6a01 et seq., and amendments thereto, except that

no project costs may be apportioned against the municipality at large and

no full faith and credit notes or bonds may be issued by the municipality

to finance a project under this act. A petition submitted pursuant to sec-

tion 3, and amendments thereto, shall be conclusive as to the method of

assessment, property to be included in the district and benefits of any

project.

New Sec. 6. (a) Any municipality may impose a transportation dis-

trict excise tax on the selling of tangible personal property at retail or

rendering or furnishing services within a transportation development dis-

trict for purposes of financing a project in such district in any increment

of .10% not to exceed 1.0% and pledging the revenue received therefrom

to pay the bonds issued for the project. Any transportation district excise

tax imposed pursuant to this section shall expire no later than the date

the bonds issued to finance such project or refunding bonds issued there-

fore shall mature.

(b) Any municipality proposing to impose a transportation district ex-

cise tax authorized by this section shall adopt a resolution stating its in-

tention to levy such tax. Such notice shall be published at least once each

week for two consecutive weeks in the newspaper. If within 30 days after

the last publication of the notice a petition signed by at least 5% of the

owners of record within the transportation development district is sub-

mitted to the clerk of the municipality requesting an election upon such

question, an election of the owners of record, whether resident or not,

shall be called and held thereon. Such election shall be called and held

in the manner provided by K.S.A. 25-431 et seq., and amendments

thereto. If no protest or no sufficient protest is filed or if an election is

held and the proposition carries by a majority of the owners of record

within the district voting thereon, the governing body, by resolution or

ordinance, may levy such tax. Such tax shall be administered and collected

by the municipality, except that such tax shall be subject to the conditions

or limitations contained in the provisions of K.S.A. 12-187 to 12-197,

inclusive, and amendments thereto.

New Sec. 7. No suit to set aside the assessments, the transportation

district excise tax or otherwise question the validity of the proceedings

for the creation of the district or the authorization of the project shall be

brought after the expiration of 30 days from the adoption of the ordinance

or resolution creating the district.

New Sec. 8. The total cost of any project authorized pursuant to this

act shall be paid from all or any of the following sources:

(a) Special assessments imposed in the district pursuant to this act

which have been paid in full prior to the date set by the governing body

as provided in K.S.A. 12-6a10, and amendments thereto, shall be paid

from assessments so collected;

(b) special assessments imposed in the district pursuant to this act,

to be paid in installments;

(c) a pledge of all of the revenue received from the transportation

district excise tax authorized by section 6, and amendments thereto; and

(d) any other funds appropriated by the municipality.

New Sec. 9. A separate fund shall be created for each district and

each project and such fund shall be identified by a suitable title. The

proceeds from the sale of bonds and any other moneys appropriated by

the governing body for such purpose shall be credited to such fund. Such

fund shall be used solely to pay the costs of the project.

New Sec. 10. (a) Any municipality may issue bonds in one or more

series to finance the undertaking of any project in accordance with the

provisions of this act. Such bonds shall be made payable, both as to prin-

cipal and interest solely from a pledge of the sources of funds described

in section 8, and amendments thereto. The municipality may pledge such

revenue to the repayment of such bonds prior to, simultaneously with, or

subsequent to the issuance of such bonds.

(b) Bonds issued pursuant to subsection (a) shall not be general ob-

ligations of the municipality, 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 subsection (a) and such bonds shall so state on

their face.

(c) Bonds issued pursuant to subsection (a) shall be special obliga-

tions of the municipality and are declared to be negotiable instruments.

Such bonds shall be executed by the authorized representatives of the

municipality and sealed with the corporate seal of the municipality. All

details pertaining to the issuance of the bonds and terms and conditions

thereof shall be determined by ordinance or resolution of the munici-

pality. The provisions of K.S.A. 10-106, and amendments thereto, re-

quiring a public sale of bonds shall not apply to bonds issued under this

act. All bonds issued pursuant to this act and all income or interest there-

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

bonds shall contain none of the recitals set forth in K.S.A. 10-112, and

amendments thereto. Such bonds shall contain the following recitals: The

authority under which such bonds are issued; that such bonds are in

conformity with the provisions, restrictions and limitations thereof; and

that such bonds and the interest thereon are to be paid from the money

and revenue received as provided in subsection (a).

(d) Any municipality issuing 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.

(e) Bonds issued under the provisions of this act shall be in addition

to and not subject to any statutory limitation of bonded indebtedness

imposed on such municipality.

Sec. 11. K.S.A. 12-194 is hereby amended to read as follows: 12-194.

No city or county shall levy or impose an excise tax or a tax in the nature

of an excise, other than a retailers' sales tax and a compensating use tax,

upon the sale or transfer of personal or real property, or the use thereof,

or the rendering of a service, but the provisions of this section shall not

be construed as prohibiting any city from (a) contracting with a utility for

a fixed charge based upon a percentage of gross receipts derived from

the service permitted by grant, right, privilege or franchise to such utility;

(b) imposing an occupation tax or license fee for the privilege of engaging

in any business, trade, occupation or profession, or rendering or furnish-

ing any service, but the determination of any such license fee shall not

be based upon any amount the licensee has received from the sale or

transfer of personal or real property, or for the rendering or furnishing

of a service, or on the income of the licensee; or (c) levying any occupation

tax or license fee imposed by such city prior to the effective date of this

act; or (d) levying a tax for the purpose of financing a transportation

development district, created under sections 1 through 10, and amend-

ments thereto. No license fee described in subsection (b) of this section

shall be imposed upon any utility contracting with and subject to a charge,

described in subsection (a) of this section, by such city.

Sec. 12. K.S.A. 25-432 is hereby amended to read as follows: 25-432.

An election shall not be conducted under this act unless:

(a) Conducted on a date, mutually agreed upon by the governing

body of the political or taxing subdivision and the county election officer,

not later than 120 days following the date the request is submitted by the

political or taxing subdivision; and

(b) the secretary of state approves a written plan for conduct of the

election, which shall include a written timetable for the conduct of the

election, submitted by the county election officer; and

(c) the election is nonpartisan; and

(d) the election is not one at which any candidate is elected, retained

or recalled; and

(e) the election is not held on the same date as another election in

which the qualified electors of that subdivision of government are eligible

to cast ballots; and

(f) the election is a question submitted election at which all of the

qualified electors of one of the following subdivisions of government are

the only electors eligible to vote:

(1) Counties;

(2) cities;

(3) school districts, except in an election held pursuant to K.S.A. 72-

7302 et seq., and amendments thereto;

(4) townships;

(5) benefit districts as organized under K.S.A. 31-301, and amend-

ments thereto;

(6) cemetery districts as organized under K.S.A. 15-1013 or 17-1330,

and amendments thereto;

(7) combined sewer districts as organized under K.S.A. 19-27,169,

and amendments thereto;

(8) community college districts as organized under K.S.A. 71-1101 et

seq., and amendments thereto;

(9) fire districts as organized under K.S.A. 19-3601 or 80-1512, and

amendments thereto;

(10) hospital districts;

(11) improvement districts as organized under K.S.A. 19-2753, and

amendments thereto;

(12) Johnson county park and recreation district as organized under

K.S.A. 19-2859, and amendments thereto;

(13) sewage disposal districts as organized under K.S.A. 19-27,140,

and amendments thereto; or

(14) water districts as organized under K.S.A. 19-3501 et seq., and

amendments thereto.; or

(15) transportation development districts created pursuant to section

1 et seq., and amendments thereto.

Sec. 13. K.S.A. 12-194 and 25-432 are hereby repealed.

Sec. 14. This act shall take effect and be in force from and after its

publication in the statute book.

Approved May 13, 2002.


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