As Amended by House Committee
[As Amended by Senate Committee of the
Whole]
As Amended by Senate Committee
Session of 1998
SENATE BILL No. 542
By Committee on Transportation and Tourism
1-29
14
AN ACT
[concerning motor vehicles;]
relating to certificates of title;
15 concerning
repossessed vehicles; creating the repossessed
certificates
16 of title
fee fund; amending K.S.A.
[8-116a and K.S.A.]
1997 Supp.
17 8-135 and
8-145 and repealing the existing sections.
18 AN ACT relating to
transportation; concerning motor vehicles and
19 aircraft; amending
K.S.A. 8-116a, 79-3401, 79-3402, 79-3403,
20 79-3405, 79-3406,
79-3407, 79-3408, 79-3408c, 79-3408g, 79-
21 3409, 79-3410,
79-3415, 79-3416, 79-3417, 79-3419, 79-3420,
22 79-3421, 79-3424,
79-3425, 79-3461, 79-3464d, 79-3464e,
23 79-34,141 and
79-34,142 and K.S.A. 1997 Supp. 8-135 and 8-145
24 and repealing the
existing sections; also repealing K.S.A. 79-
25 3408g and
79-34,143.
26
27 Be it enacted by the Legislature of the
State of Kansas:
28 New
Section 1. There is hereby created in the state treasury,
the
29 repossessed certificates of title fee fund.
All moneys credited to the re-
30 possessed certificates of title fee fund
shall be used by the department of
31 revenue only for the purposes of funding
the administration and opera-
32 tions, including personnel associated with
the processing of certificates
33 of title for repossessed vehicles. All
expenditures from the repossessed
34 certificates of title fee fund shall be
made in accordance with appropri-
35 ation acts, upon warrants of the director
of accounts and reports issued
36 pursuant to vouchers approved by the
secretary of the department of
37 revenue.
38
[Sec. 2. K.S.A. 8-116a is hereby amended to read as
follows:
39 8-116a. (a) When an application is
made for a vehicle which has
40 been assembled, reconstructed,
reconstituted or restored from one
41 or more vehicles, or the proper
identification number of a vehicle
42 is in doubt, the procedure in this
section shall be followed. The
43 owner of the vehicle shall request
the Kansas highway patrol to
SB 542--Am. by H
2
1 check the vehicle. At the time
of such check the owner shall supply
2 the highway patrol with
information concerning the history of the
3 various parts of the vehicle.
Such information shall be supplied by
4 affidavit of the owner, if so
requested by the highway patrol. If the
5 highway patrol is satisfied
that the vehicle contains no stolen parts,
6 it shall assign an existing or
new identification number to the vehicle
7 and direct the places and
manner in which the identification num-
8 ber is to be located and
affixed or implanted. A charge of $10 per
9 hour or part thereof, with a
minimum charge of $10, shall be made
10 to the owner of a vehicle requesting
check under this subsection,
11 and such charge shall be paid prior
to the check under this section.
12 When a check has been made under
subsection (b), not more than
13 60 days prior to a check of the same
vehicle identification number,
14 requested by the owner of the vehicle
to obtain a regular certificate
15 of title in lieu of a nonhighway
certificate of title, no charge shall
16 be made for such second
check.
17
[(b) From and after the effective date
of this act, Any person mak-
18 ing application for any original
Kansas title for a used vehicle
19 which, at the time of making
application, is titled in another juris-
20 diction, as a condition precedent to
obtaining any Kansas title, shall
21 have such vehicle checked by the
Kansas highway patrol for veri-
22 fication that the vehicle
identification number shown on the foreign
23 title is genuine and agrees with the
identification number on the
24 vehicle. Checks under this section
may include inspection for pos-
25 sible violation of
K.S.A. 8-611 K.S.A. 21-3757, and
amendments
26 thereto or other evidence of possible
fraud. The verification shall
27 be made upon forms prescribed by the
division of vehicles which
28 shall contain such information as the
secretary of revenue shall re-
29 quire by rules and regulations. A
charge of $10 per hour or part
30 thereof, with a minimum charge of
$10, shall be made for checks
31 under this subsection. When a vehicle
is registered in another state,
32 but is financed by a Kansas financial
institution and is repossessed
33 in another state and such vehicle
will not be returned to Kansas,
34 the check required by this subsection
(b) shall not be required to
35 obtain a valid Kansas title or
registration.
36 [(c) As used in
this act, ``identification number'' or ``vehicle
37 identification number'' means an
identifying number, serial num-
38 ber, engine number, transmission
number or other distinguishing
39 number or mark, placed on a vehicle,
engine, transmission or other
40 essential part by its manufacturer or
by authority of the division of
41 vehicles or the Kansas highway patrol
or in accordance with the
42 laws of another state or
country.
43 [(d) The checks
made under subsection (b) may be made by:
SB 542--Am. by H
3
1
[(1) A designee of the
superintendent of the Kansas highway pa-
2 trol; or
3
[(2) an employee of a new vehicle dealer, as
defined in subsection (b)
4 of K.S.A. 8-2401, and amendments
thereto, for the purposes provided for
5 in subsection (f). For
checks made by a designee, $1 of each charge
6 shall be remitted to the Kansas
highway patrol and the balance of
7 such charges shall be retained
by such designee. When a check is
8 made under either subsection
(a) or (b) by personnel of the Kansas
9 highway patrol or
when a check is made under subsection (b) by an
10 employee of a new vehicle
dealer, the entire amount of the charge
11 therefor shall be paid to the highway
patrol.
12 [(e) There is
hereby created the vehicle identification number
13 fee fund. The Kansas highway patrol
shall remit all moneys received
14 by the Kansas highway patrol from
fees collected under subsection
15 (d) to the state treasurer at least
monthly. Upon receipt of each such
16 remittance, the state treasurer shall
deposit the entire amount in
17 the state treasury to the credit of
the vehicle identification number
18 fee fund. All expenditures from the
vehicle identification number
19 fee fund shall be made in accordance
with appropriations acts upon
20 warrants of the director of accounts
and reports issued pursuant to
21 vouchers approved by the
superintendent of the Kansas highway
22 patrol or by a person or persons
designated by the superintendent.
23
[(f) An employee of a new vehicle
dealer, who has received training
24 from the highway patrol in accordance
with rules and regulations
25 adopted by the superintendent of the
highway patrol, may provide
26 the checks under subsection (b) on motor
vehicles repurchased or reac-
27 quired by a manufacturer, distributor or
a financing subsidiary of such
28 manufacturer and which are purchased by
the new vehicle dealer.]
29 Sec. 2
[3]. K.S.A. 1997 Supp. 8-135 is hereby amended
to read as
30 follows: 8-135. (a) Upon the transfer of
ownership of any vehicle regis-
31 tered under this act, the registration of
the vehicle and the right to use
32 any license plate thereon shall expire and
thereafter there shall be no
33 transfer of any registration, and the
license plate shall be removed by the
34 owner thereof. It shall be unlawful for any
person, other than the person
35 to whom the license plate was originally
issued, to have possession
36 thereof. When the ownership of a registered
vehicle is transferred, the
37 original owner of the license plate may
register another vehicle under the
38 same number, upon application and payment
of a fee of $1.50, if such
39 other vehicle does not require a higher
license fee. If a higher license fee
40 is required, then the transfer may be made
upon the payment of the
41 transfer fee of $1.50 and the difference
between the fee originally paid
42 and that due for the new vehicle.
43 (b) Subject to the
provisions of subsection (a) of K.S.A. 8-198, and
SB 542--Am. by H
4
1 amendments thereto, upon the transfer
or sale of any vehicle by any
2 person or dealer, or upon any
transfer in accordance with K.S.A. 1997
3 Supp. 59-3511, and amendments
thereto, the new owner thereof, within
4 30 days, inclusive of weekends and
holidays, from date of such transfer
5 shall make application to the
division for registration or reregistration of
6 the vehicle, but no person shall
operate the vehicle on any highway in
7 this state during the thirty-day
period without having applied for and
8 obtained temporary registration from
the county treasurer or from a
9 dealer. After the expiration of the
thirty-day period, it shall be unlawful
10 for the owner or any other person to
operate such vehicle upon the high-
11 ways of this state unless the vehicle has
been registered as provided in
12 this act. For failure to make application
for registration as provided in
13 this section, a penalty of $2 shall be
added to other fees. When a person
14 has a current motorcycle or passenger
vehicle registration and license
15 plate, including any registration decal
affixed thereto, for a vehicle and
16 has sold or otherwise disposed of the
vehicle and has acquired another
17 motorcycle or passenger vehicle and intends
to transfer the registration
18 and the license plate to the motorcycle or
passenger vehicle acquired, but
19 has not yet had the registration
transferred in the office of the county
20 treasurer, such person may operate the
motorcycle or passenger vehicle
21 acquired for a period of not to exceed 30
days by displaying the license
22 plate on the rear of the vehicle acquired.
If the acquired vehicle is a new
23 vehicle such person also must carry the
assigned certificate of title or
24 manufacturer's statement of origin when
operating the acquired vehicle,
25 except that a dealer may operate such
vehicle by displaying such dealer's
26 dealer license plate.
27 (c) Certificate of
title: No vehicle required to be registered shall be
28 registered or any license plate or
registration decal issued therefor, unless
29 the applicant for registration shall
present satisfactory evidence of own-
30 ership and apply for an original
certificate of title for such vehicle. The
31 following paragraphs of this subsection
shall apply to the issuance of a
32 certificate of title for a nonhighway
vehicle, as defined in K.S.A. 8-197,
33 and amendments thereto, except to the
extent such paragraphs are made
34 inapplicable by or are inconsistent with
K.S.A. 8-198, and amendments
35 thereto.
36 (1) An application for
certificate of title shall be made by the owner
37 or the owner's agent upon a form furnished
by the division and shall state
38 all liens or encumbrances thereon, and such
other information as the
39 division may require. Notwithstanding any
other provision of this section,
40 no certificate of title, other than a
duplicate title, shall be issued for a
41 vehicle having any unreleased lien or
encumbrance thereon, unless the
42 transfer of such vehicle has been consented
to in writing by the holder
43 of the lien or encumbrance. Such consent
shall be in a form approved by
SB 542--Am. by H
5
1 the division. In the case of members
of the armed forces of the United
2 States while the United States is
engaged at war with any foreign nation
3 and for a period of six months next
following the cessation of hostilities,
4 such application may be signed by the
owner's spouse, parents, brother
5 or sister. The county treasurer shall
use reasonable diligence in ascer-
6 taining whether the facts stated in
such application are true, and if sat-
7 isfied that the applicant is the
lawful owner of such vehicle, or otherwise
8 entitled to have the same registered
in such applicant's name, shall so
9 notify the division, who shall issue
an appropriate certificate of title. The
10 certificate of title shall be in a form
approved by the division, and shall
11 contain a statement of any liens or
encumbrances which the application
12 shows, and such other information as the
division determines.
13 (2) The certificate of
title shall contain upon the reverse side a form
14 for assignment of title to be executed by
the owner before a notary public
15 or some other officer authorized to
administer an oath. This assignment
16 shall contain a statement of all liens or
encumbrances on the vehicle at
17 the time of assignment. The certificate of
title shall also contain on the
18 reverse side blank spaces so that an
abstract of mileage as to each owner
19 will be available. The seller at the time
of each sale shall insert the mileage
20 on the form filed for application or
reassignment of title, and the division
21 shall insert such mileage on the
certificate of title when issued to pur-
22 chaser or assignee. The signature of the
purchaser or assignee is required
23 on the form filed for application or
reassignment of title, acknowledging
24 the odometer certification made by the
seller, except that vehicles which
25 are 10 model years or older and trucks with
a gross vehicle weight of
26 more than 16,000 pounds shall be exempt
from the mileage acknowledg-
27 ment requirement of the purchaser or
assignee. Such title shall indicate
28 whether the vehicle for which it is issued
has been titled previously as a
29 nonhighway vehicle. In addition, the
reverse side shall contain two forms
30 for reassignment by a dealer, stating the
liens or encumbrances thereon.
31 The first form of reassignment shall be
used only when a dealer sells the
32 vehicle to another dealer. The second form
of reassignment shall be used
33 by a dealer when selling the vehicle to
another dealer or the ultimate
34 owner of the vehicle. The reassignment by a
dealer shall be used only
35 where the dealer resells the vehicle, and
during the time that the vehicle
36 remains in the dealer's possession for
resale, the certificate of title shall
37 be dormant. When the ownership of any
vehicle passes by operation of
38 law, or repossession upon default of a
lease, security agreement, or ex-
39 ecutory sales contract, the person owning
such vehicle, upon furnishing
40 satisfactory proof to the county treasurer
of such ownership, may procure
41 a certificate of title to the vehicle. When
a vehicle is registered in another
42 state and is repossessed in another state,
the owner of such vehicle shall
43 not be entitled to obtain a valid Kansas
title or registration, except that
SB 542--Am. by H
6
1 when a vehicle is registered in
another state, but is financed originally by
2 a financial institution chartered in
the state of Kansas or when a financial
3 institution chartered in Kansas
purchases a pool of motor vehicle loans
4 from the resolution trust corporation
or a federal regulatory agency, and
5 the vehicle is repossessed in another
state, such Kansas financial institu-
6 tion shall be entitled to obtain a
valid Kansas title or registration. In
7 addition to any other fee required
for the issuance of a certificate of title,
8 any applicant obtaining a
certificate of title for a repossessed vehicle shall
9 pay a fee of
$2 $3.
10 (3) Dealers shall
execute, upon delivery to the purchaser of every new
11 vehicle, a manufacturer's statement of
origin stating the liens and encum-
12 brances thereon. Such statement of origin
shall be delivered to the pur-
13 chaser at the time of delivery of the
vehicle or at a time agreed upon by
14 the parties, not to exceed 30 days,
inclusive of weekends and holidays.
15 The agreement of the parties shall be
executed on a form approved by
16 the division. In the event delivery of
title cannot be made personally, the
17 seller may deliver the manufacturer's
statement of origin by restricted
18 mail to the address of purchaser shown on
the purchase agreement. The
19 manufacturer's statement of origin may
include an attachment containing
20 assignment of such statement of origin on
forms approved by the division.
21 Upon the presentation to the division of a
manufacturer's statement of
22 origin, by a manufacturer or dealer for a
new vehicle, sold in this state, a
23 certificate of title shall be issued if
there is also an application for regis-
24 tration, except that no application for
registration shall be required for a
25 travel trailer used for living quarters and
not operated on the highways.
26 (4) The fee for each
original certificate of title shall be $7 until July
27 1, 1999, and $3.50 thereafter, in addition
to the fee for registration of
28 such vehicle, trailer or semitrailer. The
certificate of title shall be good
29 for the life of the vehicle, trailer or
semitrailer while owned or held by
30 the original holder of the certificate of
title.
31 (5) Upon sale and
delivery to the purchaser of every vehicle subject
32 to a purchase money security interest as
defined in K.S.A. 84-9-107, and
33 amendments thereto, the dealer or secured
party may complete a notice
34 of security interest and when so completed,
the purchaser shall execute
35 the notice, in a form prescribed by the
division, describing the vehicle
36 and showing the name and address of the
secured party and of the debtor
37 and other information the division
requires. The dealer or secured party,
38 within 15 days of the sale and delivery,
may mail or deliver the notice of
39 security interest, together with a fee of
$2.50, to the division. The notice
40 of security interest shall be retained by
the division until it receives an
41 application for a certificate of title to
the vehicle and a certificate of title
42 is issued. The certificate of title shall
indicate any security interest in the
43 vehicle. Upon issuance of the certificate
of title, the division shall mail or
SB 542--Am. by H
7
1 deliver confirmation of the receipt
of the notice of security interest, the
2 date the certificate of title is
issued and the security interest indicated, to
3 the secured party at the address
shown on the notice of security interest.
4 The proper completion and timely
mailing or delivery of a notice of se-
5 curity interest by a dealer or
secured party shall perfect a security interest
6 in the vehicle described on the date
of such mailing or delivery. The
7 county treasurers shall mail a copy
of the title application to the Kansas
8 lienholder. Each county treasurer
shall charge the Kansas lienholder a
9 $1.50 service fee for processing and
mailing a copy of the title application
10 to the Kansas lienholder.
11 (6) It shall be unlawful
for any person to operate in this state a vehicle
12 required to be registered under this act,
or to transfer the title to any
13 such vehicle to any person or dealer,
unless a certificate of title has been
14 issued as herein provided. In the event of
a sale or transfer of ownership
15 of a vehicle for which a certificate of
title has been issued, which certif-
16 icate of title is in the possession of the
transferor at the time of delivery
17 of the vehicle, the holder of such
certificate of title shall endorse on the
18 same an assignment thereof, with warranty
of title in a form prescribed
19 by the division and printed thereon and the
transferor shall deliver the
20 same to the buyer at the time of delivery
to the buyer of the vehicle or
21 at a time agreed upon by the parties, not
to exceed 30 days, inclusive of
22 weekends and holidays, after the time of
delivery. The agreement of the
23 parties shall be executed on a form
provided by the division. The require-
24 ments of this paragraph concerning delivery
of an assigned title are sat-
25 isfied if the transferor mails to the
transferee by restricted mail the as-
26 signed certificate of title within the 30
days, and if the transferor is a
27 dealer, as defined by K.S.A. 8-2401, and
amendments thereto, such trans-
28 feror shall be deemed to have possession of
the certificate of title if the
29 transferor has made application therefor to
the division. The buyer shall
30 then present such assigned certificate of
title to the division at the time
31 of making application for registration of
such vehicle. A new certificate
32 of title shall be issued to the buyer, upon
payment of the fee of $7 until
33 July 1, 1999, and $3.50 thereafter. If such
vehicle is sold to a resident of
34 another state or country, the dealer or
person making the sale shall notify
35 the division of the sale and the division
shall make notation thereof in the
36 records of the division. When a person
acquires a security agreement on
37 a vehicle subsequent to the issuance of the
original title on such vehicle,
38 such person shall require the holder of the
certificate of title to surrender
39 the same and sign an application for a
mortgage title in form prescribed
40 by the division. Upon such surrender such
person shall immediately de-
41 liver the certificate of title,
application, and a fee of $7 until July 1, 1999,
42 and $3.50 thereafter, to the division. Upon
receipt thereof, the division
43 shall issue a new certificate of title
showing the liens or encumbrances so
SB 542--Am. by H
8
1 created, but not more than two liens
or encumbrances may be shown
2 upon a title. When a prior
lienholder's name is removed from the title,
3 there must be satisfactory evidence
presented to the division that the lien
4 or encumbrance has been paid. When
the indebtedness to a lienholder,
5 whose name is shown upon a title, is
paid in full, such lienholder within
6 10 days after written demand by
restricted mail, shall furnish to the holder
7 of the title a release of lien or
execute such a release in the space provided
8 on the title. For failure to comply
with such a demand the lienholder shall
9 be liable to the holder of the title
for $100 and also shall be liable for any
10 loss caused to the holder by such failure.
When the indebtedness to a
11 lienholder, whose name is shown upon a
title, is collected in full, such
12 lienholder, within 30 days, shall furnish
notice to the holder of title that
13 such indebtedness has been paid in full and
that such title may be pre-
14 sented to the lienholder at any time for
release of lien.
15 (7) It shall be unlawful
for any person to buy or sell in this state any
16 vehicle required to be registered, unless,
at the time of delivery thereof
17 or at a time agreed upon by the parties,
not to exceed 30 days, inclusive
18 of weekends and holidays, after the time of
delivery, there shall pass
19 between the parties a certificate of title
with an assignment thereof. The
20 sale of a vehicle required to be registered
under the laws of this state,
21 without assignment of the certificate of
title, is fraudulent and void, unless
22 the parties shall agree that the
certificate of title with assignment thereof
23 shall pass between them at a time other
than the time of delivery, but
24 within 30 days thereof. The requirements of
this paragraph concerning
25 delivery of an assigned title shall be
satisfied if (i) the seller mails to the
26 purchaser by restricted mail the assigned
certificate of title within 30 days,
27 or (ii) if the transferor is a dealer, as
defined by K.S.A. 8-2401, and amend-
28 ments thereto, such seller shall be deemed
to have possession of the
29 certificate of title if such seller has
made application therefor to the di-
30 vision, or (iii) if the transferor is a
dealer and has assigned a title pursuant
31 to paragraph (9) of this subsection
(c).
32 (8) In cases of sales
under the order of a court of a vehicle required
33 to be registered under this act, the
officer conducting such sale shall issue
34 to the purchaser a certificate naming the
purchaser and reciting the facts
35 of the sale, which certificate shall be
prima facie evidence of the own-
36 ership of such purchaser for the purpose of
obtaining a certificate of title
37 to such motor vehicle and for registering
the same. Any such purchaser
38 shall be allowed 30 days, inclusive of
weekends and holidays, from the
39 date of sale to make application to the
division for a certificate of title
40 and for the registering of such motor
vehicle.
41 (9) Any dealer who has
acquired a vehicle, the title for which was
42 issued under the laws of and in a state
other than the state of Kansas,
43 shall not be required to obtain a Kansas
certificate of title therefor during
SB 542--Am. by H
9
1 the time such vehicle remains in such
dealer's possession and at such
2 dealer's place of business for the
purpose of sale. The purchaser or trans-
3 feree shall present the assigned
title to the division of vehicles when
4 making application for a certificate
of title as provided in subsection (c)(1).
5 (10) Motor
vehicles may be held and titled in transfer-on-death form.
6
Sec. 3 [4]. K.S.A. 1997
Supp. 8-145 is hereby amended to read as
7 follows: 8-145. (a) All registration
and certificates of title fees shall be paid
8 to the county treasurer of the county
in which the applicant for registra-
9 tion resides or has an office or
principal place of business within this state,
10 and the county treasurer shall issue a
receipt in triplicate, on blanks fur-
11 nished by the division of vehicles, one
copy of which shall be filed in the
12 county treasurer's office, one copy shall
be delivered to the applicant and
13 the original copy shall be forwarded to the
director of vehicles.
14 (b) The county treasurer
shall deposit $.75 of each license applica-
15 tion, $.75 out of each application for
transfer of license plate and $2 out
16 of each application for a certificate of
title, collected by such treasurer
17 under this act, in a special fund, which
fund is hereby appropriated for
18 the use of the county treasurer in paying
for necessary help and expenses
19 incidental to the administration of duties
in accordance with the provi-
20 sions of this law and extra compensation to
the county treasurer for the
21 services performed in administering the
provisions of this act, which com-
22 pensation shall be in addition to any other
compensation provided by any
23 other law, except that the county treasurer
shall receive as additional
24 compensation for administering the motor
vehicle title and registration
25 laws and fees, a sum computed as follows:
The county treasurer, during
26 the month of December, shall determine the
amount to be retained for
27 extra compensation not to exceed the
following amounts each year for
28 calendar year 1990 or any calendar year
thereafter: The sum of $60 per
29 hundred registrations for the first 5,000
registrations; the sum of $45 per
30 hundred registrations for the next 5,000
registrations; and the sum of $2
31 per hundred registrations for all
registrations thereafter. In no event,
32 however, shall any county treasurer be
entitled to receive more than
33 $9,800 additional annual compensation.
34 If more than one person shall
hold the office of county treasurer during
35 any one calendar year, such compensation
shall be prorated among such
36 persons in proportion to the number of
weeks served. The total amount
37 of compensation paid the treasurer together
with the amounts expended
38 in paying for other necessary help and
expenses incidental to the admin-
39 istration of the duties of the county
treasurer in accordance with the
40 provisions of this act, shall not exceed
the amount deposited in such spe-
41 cial fund. Any balance remaining in such
fund at the close of any calendar
42 year shall be withdrawn and credited to the
general fund of the county
43 prior to June 1 of the following calendar
year.
SB 542--Am. by H
10
1 (c) The county
treasurer shall remit the remainder of all such fees
2 collected, together with the original
copy of all applications, to the sec-
3 retary of revenue. Except as provided
in subsection (d), all such fees
4 remitted to the secretary of revenue
shall be deposited with the state
5 treasurer and credited to the state
highway fund.
6
(d) (1) On July 1, 1996, through June 30, 1997,
$2.35 of each certif-
7 icate of title fee collected
and remitted to the secretary of revenue, shall
8 be deposited with the state
treasurer and credited to the Kansas highway
9 patrol motor vehicle fund,
and $1.15 of each certificate of title fee col-
10 lected and remitted to the
secretary of revenue, shall be deposited with
11 the state treasurer and credited to
the VIPS/CAMA technology hardware
12 fund.
13 (2)
(1) On July 1, 1997, through June 30, 1999, $2.50 of
each certif-
14 icate of title fee collected and remitted
to the secretary of revenue, shall
15 be deposited with the state treasurer and
credited to the Kansas highway
16 patrol motor vehicle fund, and, $1 of each
certificate of title fee collected
17 and remitted to the secretary of revenue,
shall be deposited with the state
18 treasurer and credited to the VIPS/CAMA
technology hardware fund.
19 (2) For repossessed
vehicles, $2 $3 of
each certificate of title fee col-
20 lected and remitted to the secretary of
revenue, shall be deposited with
21 the state treasurer and credited to the
repossessed certificates of title fee
22 fund.
23 Sec. 4. K.S.A.
79-3401 is hereby amended to read as follows:
24 79-3401. This act, and amendments
thereto, shall be known and
25 may be cited as the ``motor-fuel tax
law,'' and as so constituted is
26 hereinafter referred to as ``this act.''
The following words, terms
27 and phrases, when used in this act,
shall have the meanings as-
28 cribed to them in this section, except
in those instances clearly
29 indicating a different meaning:
30 (a) ``Aviation fuel''
means motor fuels for use as fuel for air-
31 craft;
32 (b) ``agricultural
ethyl alcohol'' means a motor-vehicle fuel
33 component with a purity of at least 99%,
exclusive of any added
34 denaturants, denatured in conformity
with one of the methods ap-
35 proved by the United States department
of the treasury, bureau
36 of alcohol, tobacco and firearms, and
distilled in the United States
37 of America from grain produced in the
United States of America;
38 (c) ``bulk plant''
means a motor fuels storage facility, other than
39 a terminal, that is primarily used to
redistribute motor fuels;
40 (d) ``dealer'' means
any person engaged in the retail sale of
41 motor-vehicle fuels
or, special fuels or aviation
fuels;
42 (e) ``director''
means the director of taxation, a duly authorized
43 deputy, agent or representative;
SB 542--Am. by H
11
1
(f) ``distributor'' means any person, who:
2 (1) Imports or
causes to be imported from any other state or
3 territory of the United States
motor-vehicle fuels or, special
fuels
4 or aviation fuels for such
person's own use in the state of Kansas, or
5 for sale and delivery therein,
after the same shall have come to
6 rest or storage therein, whether
or not in the original package,
7 receptacle or container;
or
8 (2) imports or
causes to be imported, from a foreign country,
9 motor-vehicle fuels
or, special fuels or aviation
fuels for such per-
10 son's own use in the state of Kansas, or
for sale and delivery
11 therein, after the same shall have come
to rest or storage, whether
12 or not in the original package,
receptacle or container;
13 (3) purchases or
receives motor-vehicle fuels or,
special fuels
14 or aviation fuels in the original
package, receptacle or container in
15 the state of Kansas for such person's
own use therein, or for sale
16 and delivery therein, from any person
who has imported the same
17 from any other state or territory of the
United States, or any other
18 nation, in case such motor-vehicle
fuels or, special fuels or
aviation
19 fuels have not, prior to such
purchase or receipt, come to rest or
20 storage in the state of Kansas;
or
21 (4) received and, in
any manner, uses, sells or delivers motor-
22 vehicle fuels
or, special fuels or aviation
fuels in the state of Kansas
23 on which the tax provided for in this
act has not been previously
24 paid;
25 (g) ``exporter''
means any person who exports or causes to be
26 exported motor vehicle fuels
or, special fuels or aviation
fuels from
27 Kansas to any other state or territory
of the United States or to a
28 foreign country, for such person's own
use or for sale or delivery
29 therein, whether or not in the original
package, receptacle or con-
30 tainer;
31 (h) ``importer''
means any person who imports or causes to be
32 imported motor-vehicle fuels
or, special fuels or aviation
fuels from
33 any other state or territory of the
United States or from a foreign
34 country, for such person's own use in
the state of Kansas or for
35 sale or delivery therein, whether or not
in the original package,
36 receptacle or container;
37 (i) ``liquid fuels''
or ``motor fuels'' means any inflammable liq-
38 uid by whatever name such liquid shall
be known or sold, which is
39 used, or practically or commercially
usable, either alone or when
40 mixed or combined in an
internal-combustion engine for the gen-
41 eration of power;
42 (j) ``manufacturer''
or ``refiner'' means any person who or
43 which produces, refines, prepares,
blends, distills, manufactures
SB 542--Am. by H
12
1 or compounds motor-vehicle
fuels or, special fuels or
aviation fuels
2 in the state of Kansas for such
person's own use therein, or for sale
3 or delivery therein. The term
``manufacturer'' shall not include any
4 person who or which mechanically
separates liquids from natural
5 gas at production facilities or
gathering system pipelines on the
6 lease. No person who produces,
refines, prepares, blends, distills,
7 manufactures, or compounds
motor-vehicle fuels or, special
fuels
8 or aviation fuels shall be
required to render a distributor's (manu-
9 facturer's) report as to any
particular lot or lots of motor-vehicle
10 fuels or,
special fuels or aviation fuels until such
motor-vehicle fuels
11 or, special
fuels or aviation fuels have been loaded at a
refinery or
12 other place of production into tank
cars, or placed in any tank at
13 such refinery or other place of
production from which any with-
14 drawals are made direct into tanks, tank
wagons or other types of
15 transportation equipment, containers or
facilities;
16 (k) ``motor vehicle''
means a motor vehicle as defined by K.S.A.
17 8-126, and amendments thereto, and which
is required to be reg-
18 istered pursuant to K.S.A. 8-126 et
seq., and amendments thereto;
19 (l) ``motor-vehicle
fuels'' means gasoline, casinghead gasoline,
20 natural gasoline, drip gasoline,
aviation gasoline, gasohol, gasoline-
21 oxygenate blend and any other
spark-ignition motor fuel as de-
22 fined by the 1995 United States
department of commerce, national
23 institute of standards and technology
handbook 130 issued Decem-
24 ber of 1994, and as may subsequently be
defined in rules and reg-
25 ulations which the director may adopt
pursuant to K.S.A. 79-3419,
26 and amendments thereto;
27 (m) ``oil inspector''
means the director of taxation, a duly au-
28 thorized deputy, agent or
representative;
29 (n) ``person'' means
every natural person, association, partner-
30 ship, limited partnership, limited
liability company or corporation.
31 When used in any statute, prescribing
and imposing a fine or im-
32 prisonment, or both, the term ``person''
as applied to firms and
33 associations means the partners or
members thereof and, as ap-
34 plied to corporations, the corporation
and the officers thereof;
35 (o) ``public
highways'' means and includes every way or place,
36 of whatever nature, generally open to
the use of the public as a
37 matter of right, for the purposes of
vehicular travel and notwith-
38 standing that the same shall have been
temporarily closed for the
39 purpose of construction, reconstruction
or repair;
40 (p) ``received''
means motor-vehicle fuel or, special
fuel or avi-
41 ation fuel produced, refined,
prepared, distilled, manufactured,
42 blended or compounded at any refinery or
other place, in the state
43 of Kansas by any person, or imported
into this state from any other
SB 542--Am. by H
13
1 state, territory, or foreign
country by pipeline or connecting pipe-
2 line at a pipeline terminal or
pipeline tank farm for storage, shall
3 be deemed to be ``received'' by
such person thereat when the same
4 shall have been loaded at such
refinery, pipeline terminal, pipeline
5 tank farm or other place, into
tank cars, tank trucks or other con-
6 tainer, or placed in any tank from
which any withdrawals are made
7 direct into tank cars, tank trucks
or other types of transportation
8 equipment, containers or
facilities;
9
(q) ``retailer'' means a person that engages in the business
of
10 selling or distributing motor fuels to
the end user;
11 (r) ``school bus''
means every bus, as defined by K.S.A. 8-1406,
12 and amendments thereto, which is: (1)
Privately owned and con-
13 tracted for, leased or hired by a school
district or nonpublic school
14 for the transportation of pupils,
students or school personnel to or
15 from school or to or from school-related
functions or activities; or
16 (2) owned and operated by a school
district or nonpublic school
17 which is registered under the provisions
of K.S.A. 8-126 et seq.,
18 and amendments thereto, used for the
transportation of pupils,
19 students or school personnel to or from
school or to or from school-
20 related functions or activities;
21 (s) ``special fuels''
means all combustible liquids suitable for
22 the generation of power for the
propulsion of motor vehicles in-
23 cluding, but not limited to, diesel
fuel, alcohol and such fuels not
24 defined under the motor-vehicle fuels
definition, hereinafter re-
25 ferred to as motor-vehicle fuel;
26 (t) ``terminal''
means a fuel storage and distribution facility that
27 is supplied by motor vehicle, pipeline
or marine vessel, and from
28 which motor fuels may be removed at a
rack. ``Terminal'' does not
29 include any facility at which motor fuel
blend stocks and additives
30 are used in the manufacture of products
other than motor fuels
31 and from which no motor fuels are
removed;
32 (u) ``terminal
operator'' means the person who by ownership
33 or contractual agreement is charged with
the responsibility for, or
34 physical control over, and operation of
a terminal;
35 (v) ``transporter''
means a person who has been issued a liquid-
36 fuels carrier's license pursuant to
K.S.A. 55-506 et seq., and
37 amendments thereto.
38 Sec. 5. K.S.A.
79-3402 is hereby amended to read as follows:
39 79-3402. The tax imposed by this act is
levied for the purpose of
40 producing revenue to be used by the
state of Kansas to: (a) Defray
41 in whole, or in part, the cost of
constructing, widening, purchasing
42 of right-of-way, reconstructing,
maintaining, surfacing, resurfac-
43 ing and repairing the public highways,
including the payment of
SB 542--Am. by H
14
1 bonds issued for highways included
in the state system of this state,
2 and the cost and expenses of the
director of taxation and the di-
3 rector's agents and employees
incurred in administration and en-
4 forcement of this act and for no
other purpose whatever; and (b)
5 to provide grants for public use
general aviation airports under K.S.A.
6 75-5061, and amendments
thereto.
7
Sec. 6. K.S.A. 79-3403 is hereby amended to read as
follows:
8 79-3403. It shall be unlawful for
any distributor to use, sell or de-
9 liver any motor-vehicle fuels
or, special fuels or aviation
fuels within
10 this state unless such distributor at
the time of such use, sale, or
11 delivery, is the holder of a valid,
unrevoked motor-vehicle-fuels
12 distributor's license
or, special fuels distributor's
license or aviation
13 fuels distributor's license
issued to such distributor in accordance
14 with the provisions of this act for each
particular place of business
15 at which such distributor shall use,
sell or deliver motor-vehicle
16 fuels or,
special fuels or aviation fuels. Every person
desiring to op-
17 erate as a distributor shall have a
physical location in this state for
18 doing business and shall file an
application for a motor-vehicle-
19 fuels or,
special fuels or aviation fuels license or
licenses with the
20 director. The application for the
motor-vehicle-fuels or, special
fu-
21 els or aviation fuels
distributor's license shall be made upon a form
22 prescribed, prepared and furnished by
the director, and shall set
23 forth the name under which the applicant
transacts or intends to
24 transact business, the exact location of
each place of business
25 within the state where the applicant
transacts or intends to transact
26 the business of using, selling or
delivering motor-vehicle fuels or,
27 special fuels or aviation
fuels, and such other information as the
28 director may require. If the applicant
is other than a natural per-
29 son, the application shall set forth the
name and address of each
30 partner or person constituting the
association, and if a corporation
31 the names and addresses of the principal
officers, and any other
32 information prescribed by the director
for purposes of identifica-
33 tion.
34 The application shall be
signed and verified by oath or affir-
35 mation by the owner, if a natural
person. For any other business
36 form the application shall be signed and
verified by oath or affir-
37 mation by a member or partner, and in
case of a corporation, by
38 an executive officer or some person
specifically authorized by the
39 corporation to sign the application, to
which shall be attached writ-
40 ten evidence of such person's authority.
The director has the au-
41 thority to deny a distributor's license
to any applicant. Upon ap-
42 proval of the application and the bond
required, the director shall
43 grant and issue to such distributor a
motor-vehicle-fuels distribu-
SB 542--Am. by H
15
1 tor's
or, special fuels distributor's
or aviation fuels distributor's li-
2 cense for each place of business,
within the state as set forth in
3 such person's application.
Motor-vehicle-fuels distributor's li-
4 censes
or, special fuels distributor's
licenses or aviation fuels distrib-
5 utor's licenses shall not
be assignable and shall be valid only for the
6 distributor in whose name issued
and for the transaction of busi-
7 ness at the place specifically
designated therein, and shall at all
8 times be conspicuously displayed
at the place for which issued. All
9 licenses issued by the director
shall be in force, so long as the
10 holder has in force a bond, as required
by this act, deposited with
11 the director, or until such license is
surrendered or revoked for
12 cause by the director. No
motor-vehicle-fuels distributor's license
13 or, special
fuels distributor's license or aviation fuels distributor's
li-
14 cense shall be granted and issued
until the person applying has filed
15 with the director a bond, payable to the
state of Kansas, in such
16 amount as shall be fixed by the
director, but in no event less than
17 $1,000, with a corporate surety
authorized to do business in the
18 state of Kansas and approved by the
director, except that should
19 a distributor be unable to secure a
corporate surety bond, the di-
20 rector shall issue a license to such
distributor upon the distributor
21 furnishing a personal bond meeting the
approval of the director,
22 such bond to be conditioned that the
distributor named will faith-
23 fully comply with all the provisions of
this act during the period of
24 the license or licenses issued to such
distributor under such appli-
25 cation.
26 It shall be unlawful for
any manufacturer to use, sell or deliver
27 any motor-vehicle fuels
or, special fuels or aviation
fuels within this
28 state unless such manufacturer at the
time of such use, sale, or
29 delivery is the holder of a valid,
unsuspended and unrevoked mo-
30 tor-vehicle fuel manufacturer's
license or, special fuel
manufac-
31 turer's license or aviation fuel
manufacturer's license issued to such
32 manufacturer in accordance with the
provisions of this act for each
33 particular place of business at which
such manufacturer shall use,
34 sell or deliver motor-vehicle fuels
or, special fuels or aviation
fuels.
35 No special fuel manufacturer's license
will be required for any
36 manufacturer who is blending products
for winterization purposes
37 if the manufacturer at the time of the
blending is the holder of a
38 valid, unsuspended and unrevoked
motor-vehicle fuels or,
special
39 fuels or aviation fuels
distributor's license. Every person desiring to
40 operate as a manufacturer shall file an
application for a motor-
41 vehicle fuel manufacturer's license or
licenses or, special fuel
man-
42 ufacturer's license or licenses
or aviation fuel manufacturer's license
43 or licenses with the director.
The application for the motor-vehicle
SB 542--Am. by H
16
1 fuel manufacturer's license
or, special fuel manufacturer's
license
2 or aviation fuel manufacturer's
license shall be made on a form pre-
3 scribed, prepared, and furnished
by the director, and shall set
4 forth the name under which the
applicant transacts or intends to
5 transact business, the exact
location of each place of business
6 within the state where the
applicant transacts or intends to transact
7 the business of using, selling or
delivering motor-vehicle fuels or,
8 special fuels or aviation
fuels, and such other information as the
9 director may require. If the
applicant is other than a natural per-
10 son, the application shall set forth the
name and address of each
11 partner or person constituting the
association, and if a corporation
12 the names and addresses of the principal
officers, and any other
13 information prescribed by the director
for purposes of identifica-
14 tion.
15 The application shall be
signed and verified by oath or affir-
16 mation by the owner, if a natural
person. For any other business
17 form, the application shall be signed
and verified by oath or affir-
18 mation by a member or a partner, and in
case of a corporation, by
19 an executive officer or some person
specifically authorized by the
20 corporation to sign the application, to
which shall be attached writ-
21 ten evidence of such person's authority.
The director has the au-
22 thority to deny a manufacturer's license
to any applicant. Upon
23 approval of the application and the bond
required, the director
24 shall grant and issue to manufacturer a
motor-vehicle fuels or, spe-
25 cial fuels manufacturer's or
aviation fuels manufacturer's license for
26 each place of business, within the state
as set forth in such person's
27 application. Motor-vehicle fuels
manufacturer's licenses or,
special
28 fuels manufacturer's licenses or
aviation fuels manufacturer's licenses
29 shall not be assignable and shall be
valid only for the manufacturer
30 in whose name and issued for the
transaction of business at the
31 place specifically designated therein,
and shall at all times be con-
32 spicuously displayed at the place for
which issued. All licenses is-
33 sued by the director shall be in force,
so long as the holder has in
34 force a bond, as required by this act,
deposited with the director,
35 or until such license is surrendered or
revoked by the director.
36 Any person not licensed as
a motor-vehicle fuels or, special
fuels
37 or aviation fuels distributor
under this act, desiring to import motor-
38 vehicle fuels
or, special fuels or aviation
fuels from any other state
39 or territory of the United States, or
from a foreign country for such
40 person's own use in the state of Kansas,
or for sale or delivery
41 therein, or desiring to export
motor-vehicle fuels or, special
fuels
42 or aviation fuels from Kansas to
any other state or territory of the
43 United States, or to a foreign country
for such person's own use or
SB 542--Am. by H
17
1 for sale or delivery therein,
shall file application for a motor-ve-
2 hicle fuel
or, special fuel or aviation
fuel importer's or exporter's
3 license with the director. The
application shall be made upon a
4 form prescribed, prepared, and
furnished by the director, and
5 shall set forth the name under
which the applicant transacts, or
6 intends to transact, business of
using, selling or delivering mo-
7 tor-vehicle fuels
or, special fuels or aviation
fuels and such other
8 information as the director may
require. If the applicant is other
9 than a natural person, the
application shall set forth the name and
10 address of each partner or person
constituting the association, and
11 if a corporation the names and address
of the principal officers,
12 and any other information prescribed by
the director for purposes
13 of identification.
14 The application shall be
signed and verified by oath or affir-
15 mation by the owner, if a natural
person. For any other business
16 form the application shall be signed and
verified by oath or affir-
17 mation by a member or partner, and in
case of a corporation, by
18 an executive officer or some person
specifically authorized by the
19 corporation to sign the application, to
which shall be attached writ-
20 ten evidence of such person's authority.
The director has the au-
21 thority to deny an importer's or
exporter's license to any applicant.
22 Upon approval of the application and the
bond required, the di-
23 rector shall grant and issue to an
importer or exporter a motor-
24 vehicle fuels
or, special fuels or aviation
fuels importer's or ex-
25 porter's license. The written consent of
the applicant, irrevocable,
26 that actions may be commenced against it
in the proper court of
27 any county in this state in which a
cause of action may arise or in
28 which the plaintiff may reside, by the
service of process on the
29 secretary of state, and stipulating and
agreeing that such service
30 shall be taken and held, in all courts,
to be as valid and binding as
31 if due service had been made upon the
applicant personally, or
32 upon the president and secretary, if a
corporation. The secretary
33 of state shall notify the applicant of
any action started against such
34 applicant by mailing a copy of the
summons to the address set out
35 in the application by registered mail.
Motor-vehicle fuels im-
36 porter's or exporter's licenses
or, special fuels importer's or
ex-
37 porter's licenses or aviation
fuels importer's or exporter's licenses shall
38 not be assignable and shall be valid
only for the importer or ex-
39 porter in whose name such license is
issued. All licenses issued by
40 the director shall be in force, so long
as the holder has in force a
41 bond, as required by this act, deposited
with the director or until
42 such license is surrendered by the
director.
43 No motor-vehicle fuel
or, special fuel or aviation
fuel manufac-
SB 542--Am. by H
18
1 turer's license shall be granted
and issued until the person apply-
2 ing has filed with the director a
bond payable to the state of Kan-
3 sas, in such amount as shall be
fixed by the director, but in no event
4 less than $5,000, with a corporate
surety authorized to do business
5 in the state of Kansas and
approved by the director.
6 No motor-vehicle
fuel or, special fuel or
aviation fuel importer's
7 or exporter's license shall be
granted and issued until the person
8 applying has filed with the
director a bond, payable to the state of
9 Kansas, in such amount as shall be
fixed by the director, but in no
10 event less than $5,000, with a corporate
surety authorized to do
11 business in the state of Kansas and
approved by the director.
12 It shall be unlawful for
any retailer to sell or deliver any mo-
13 tor-vehicle fuels
or, special fuels or aviation
fuels within this state
14 unless such retailer at the time of such
sale or delivery, is the
15 holder of a valid, unrevoked retailer's
license issued to such re-
16 tailer in accordance with the provisions
of this act for each partic-
17 ular place of business at which such
retailer shall sell or deliver
18 motor-vehicle fuels
or, special fuels or aviation
fuels. Every person
19 desiring to operate as a retailer shall
have a physical location in
20 this state for doing business and shall
file an application for a re-
21 tailer's license with the director. The
application for the retailer's
22 license shall be made upon a form
prescribed, prepared and fur-
23 nished by the director, and shall set
forth the name under which
24 the applicant transacts or intends to
transact business, the exact
25 location of the place of business within
the state where the appli-
26 cant transacts or intends to transact
the business of selling or de-
27 livering motor-vehicle fuels
or, special fuels or aviation
fuels, and
28 such other information as the director
may require. If the appli-
29 cant is other than a natural person, the
application shall set forth
30 the name and address of each partner or
person constituting the
31 association, and if a corporation the
names and addresses of the
32 principal officers, and any other
information prescribed by the
33 director for purposes of
identification.
34 The application shall be
signed and verified by oath or affir-
35 mation by the owner, if a natural
person. For any other business
36 form the application shall be signed and
verified by oath or affir-
37 mation by a member or partner, and in
case of a corporation, by
38 an executive officer or some person
specifically authorized by the
39 corporation to sign the application, to
which shall be attached writ-
40 ten evidence of such person's authority.
The director has the au-
41 thority to deny a retailer's license to
any applicant. Upon approval
42 of the application, the director shall
grant and issue to such retailer
43 a motor-vehicle fuels
or, special fuels or aviation
fuels retailers' li-
SB 542--Am. by H
19
1 cense. Retailers licenses shall
not be assignable and shall be valid
2 only for the retailer in whose
name and issued for the transaction
3 of business at the place
specifically designated therein, and shall
4 at all times be conspicuously
displayed at the place for which is-
5 sued. All licenses issued by the
director shall be in force until such
6 license is surrendered or revoked
by the director.
7 Each licensee
licensed under this act shall furnish annually to
8 the director any changes occurring
in the members, corporate or
9 company officers, directors and
stock ownership of those owning
10 more than 5% of total outstanding shares
of the licensee.
11 Sec. 7. K.S.A.
79-3405 is hereby amended to read as follows:
12 79-3405. The director may at any time
require any distributor,
13 manufacturer, importer or exporter to
furnish such additional
14 bond with authorized corporate surety,
as shall be necessary to
15 secure at all times the payment by such
person to the state of all
16 taxes, penalties and interest due under
the provisions of this act.
17 If any distributor, manufacturer,
importer or exporter shall fail to
18 file such additional bond within 10 days
after receipt of written
19 notice mailed or otherwise delivered to
such person by the direc-
20 tor, the director may suspend or revoke
the license or licenses
21 issued to such person, and collect all
taxes, penalties and interest
22 accrued against such distributor,
manufacturer, importer or ex-
23 porter. For the purpose of determining
whether an existing bond
24 or bonds are sufficient, the director
may at any time, by mailed
25 written notice, or otherwise delivered,
require any distributor,
26 manufacturer, importer or exporter to
furnish a financial state-
27 ment in such form as the director may
prescribe. Upon failure of
28 any distributor, manufacturer, importer
or exporter to furnish a
29 sworn financial statement within 20 days
after receipt of such writ-
30 ten notice, the director may suspend or
revoke any or all licenses
31 issued to such person, and shall collect
all taxes, penalties, and
32 interest accrued against such
distributor, manufacturer, importer
33 or exporter.
34 Any surety on a bond
furnished by a distributor, manufacturer,
35 importer or exporter as provided shall
be released and discharged
36 from any and all liability to the state
accruing on such bond after
37 the expiration of 60 days from the date
upon which such surety
38 shall have lodged with the director a
written request to be released
39 and discharged, but this provision shall
not operate to relieve, re-
40 lease, or discharge the surety from any
liability already accrued or
41 which shall accrue before the expiration
of the sixty-day period.
42 The director shall promptly, upon
receiving any such request, no-
43 tify the distributor, manufacturer,
importer or exporter who fur-
SB 542--Am. by H
20
1 nished the bond and unless the
distributor, manufacturer, im-
2 porter or exporter shall, on or
before the expiration of such
3 sixty-day period, file with the
director a new bond fully complying
4 with the provisions of this act,
the director shall revoke and cancel
5 such distributor's,
manufacturer's, importer's or exporter's license
6 or licenses and notify the
distributor, manufacturer, importer or
7 exporter by registered mail or
otherwise.
8 Licenses issued
under the provisions of this act may be renewed
9 annually before the first day of
November upon an application to
10 the director, but no licenses shall be
renewed until the applicant
11 shall file with the director a bond in
such amounts as shall be fixed
12 by the director and fully complying with
the provisions of this act.
13 Nothing contained in this act shall
require the filing of an appli-
14 cation or bond, or the possession or
display of a motor-vehicle-
15 fuels or,
special fuels license or aviation fuels license,
for the use, sale
16 and delivery of motor-vehicle fuels
or, special fuels or aviation
fuels
17 exclusively in interstate or foreign
commerce not within the taxing
18 power of the state, or for use by, or
sale or delivery to, the United
19 States government.
20 Sec. 8. K.S.A.
79-3406 is hereby amended to read as follows:
21 79-3406. Any distributor, manufacturer
or retailer who is the
22 holder of any valid and unrevoked
license or licenses and who shall
23 subsequent to the issuance procure or
propose to procure or op-
24 erate additional places or stations for
using, selling or delivering
25 motor-vehicle fuels
or, special fuels or aviation
fuels, upon making
26 application to the director, showing as
to each proposed new place
27 or station the same information as
required for an original appli-
28 cation, may secure from the director a
license or licenses for each
29 of such new or proposed places or
stations, which new license or
30 licenses shall be in the same form and
contain the same statements
31 as the original license or
licenses.
32 Sec. 9. K.S.A.
79-3407 is hereby amended to read as follows:
33 79-3407. Whenever any distributor,
manufacturer, importer, ex-
34 porter or retailer is 10 days delinquent
in the making of any such
35 report, or the payment of any such tax,
penalty or interest, or shall
36 make any false report or statement or
application purporting to
37 be under the provisions of this act, or
shall make any false state-
38 ment in any application, report or
statement required by or pur-
39 porting to be under the provisions of
this act, or purporting to be
40 under the rules and regulations
promulgated by the director under
41 such provisions, or shall have willfully
or persistently violated any
42 of the provisions of this act or of any
rules and regulations made
43 thereunder, the director upon conducting
a hearing as provided
SB 542--Am. by H
21
1 in this section and upon finding
to the director's satisfaction upon
2 such hearing, that such
distributor, manufacturer, importer, ex-
3 porter or retailer has been
delinquent, or has violated provisions
4 of this act, may revoke any or all
licenses issued to such distributor,
5 manufacturer, importer, exporter
or retailer.
6 Hearings under this
section shall be conducted in accordance
7 with the Kansas administrative
procedure act. In the event that
8 the director revokes any license
or licenses the distributor, man-
9 ufacturer, importer, exporter or
retailer to whom such license or
10 licenses were issued shall immediately,
upon service of the direc-
11 tor's order, surrender the same to the
director and cease using,
12 selling, delivering or manufacturing any
motor-vehicle fuels or,
13 special fuels or aviation
fuels at or from any places of business or
14 stations for which the license or
licenses have been revoked.
15 Sec. 10. K.S.A.
79-3408 is hereby amended to read as follows:
16 79-3408. (a) A tax per gallon or
fraction thereof, at the rate com-
17 puted as prescribed in K.S.A. 79-34,141,
and amendments thereto,
18 is hereby imposed on the use, sale or
delivery of all motor vehicle
19 fuels or,
special fuels or aviation fuels which are used,
sold or deliv-
20 ered in this state for any purpose
whatsoever.
21 (b) Every retail pump
for motor-vehicle fuels shall be conspic-
22 uously labeled to show the content and
percentage of any ethyl
23 alcohol or other alcohol combined or
alone in excess of 1% by
24 volume.
25 (c) Such taxes shall
be paid but once. Such tax shall be com-
26 puted on all motor-vehicle fuels
or, special fuels or aviation
fuels
27 received by each distributor,
manufacturer, importer or retailer
28 in this state and paid in the manner
provided for herein, except
29 that an allowance of 2.5% shall be made
and deducted by the dis-
30 tributor to cover all ordinary losses in
handling such motor-vehicle
31 fuels or,
special fuels or aviation fuels. No such allowance
shall be
32 made on any motor-vehicle fuel
or, special fuel or aviation
fuel ex-
33 ported from the state or sold to the
United States of America or
34 any of its agencies or instrumentalities
as are now or hereinafter
35 exempt by law from liability to state
taxation. No such allowance
36 shall be made for any motor-vehicle
fuel or special fuel or
aviation
37 fuel sold or disposed of to a
consumer in tank car, transport or
38 pipeline lots.
39 (d) No tax is hereby
imposed upon or with respect to the fol-
40 lowing transactions:
41 (1) The sale or
delivery of motor-vehicle fuel or,
special fuel or
42 aviation fuel for export from the
state of Kansas to any other state
43 or territory or to any foreign
country.
SB 542--Am. by H
22
1 (2) The sale or
delivery of motor-vehicle fuel or,
special fuel or
2 aviation fuel to the United
States of America and such of its agencies
3 as are now or hereafter exempt by
law from liability to state tax-
4 ation except that this
exemption shall not be allowed if the sale or delivery
5 of motor-vehicle fuel or special
fuel is to a retail dealer located on an
6 Indian reservation in the state
and such motor-vehicle fuel, special fuel
7 or aviation fuel is sold or
delivered to a nonmember of such reservation.
8 (3) The sale or
delivery of motor-vehicle fuel or,
special fuel or
9 aviation fuel to a
contractor for use in performing work for the
10 United States or those agencies of the
United States above men-
11 tioned, provided such contractor has in
effect with the United
12 States or any such agency a
cost-plus-a-fixed-fee contract covering
13 the work.
14 (4) The sale or
delivery of motor-vehicle fuel or special fuel
which
15 is aviation fuel
to a public utility for consumption or movement directly
16 and immediately in interstate
commerce.
17 (5) The first sale or
delivery of motor-vehicle fuel or,
special
18 fuel or aviation fuel from
a refinery, pipeline terminal, pipeline tank
19 farm or other place to a duly licensed
distributor who in turn re-
20 sells to another duly licensed
distributor.
21 (6) The sale or
delivery of special fuel which is indelibly dyed
22 in accordance with regulations
prescribed pursuant to 26 U.S.C.
23 4082 and such special fuel is only used
for nonhighway purposes.
24 (e) Each distributor,
manufacturer, importer, exporter or re-
25 tailer shall make full reports and
furnish such further information
26 as the director may require with
reference to all transactions upon
27 which no tax is to be paid.
28 Sec. 11. K.S.A.
79-3408c is hereby amended to read as follows:
29 79-3408c. (a) A tax is hereby imposed on
the use, sale or delivery
30 of all motor-vehicle fuel
or, special fuel or aviation
fuel owned at
31 12:01 a.m. July 1,
1989 1998, and on July 1 of each year
thereafter,
32 by any licensed distributor or licensed
retailer at a rate per gallon,
33 or fraction thereof, equal to the
amount, if any, by which the tax
34 per gallon, or fraction thereof, in
effect on such date as prescribed
35 by K.S.A. 79-3408, and amendments
thereto, exceeds the rate of
36 tax upon such motor-vehicle fuel
or, special fuel or aviation
fuel
37 which was in effect on the preceding
day. Such tax shall be paid
38 by the licensed distributor or licensed
retailer owning such motor-
39 vehicle fuel
or, special fuel or aviation
fuel at such time and date.
40 On or before the 25th day of the month
in which a tax is imposed
41 under this section, every such
distributor and retail dealer shall
42 make a report to the director on a form
prescribed and furnished
43 by the director showing the total number
of gallons, or fraction
SB 542--Am. by H
23
1 thereof, of such motor-vehicle
fuel or, special fuel or
aviation fuel
2 owned at the time the tax is
imposed under this section and such
3 report shall be accompanied by a
remittance of the tax due.
4 Any licensed
distributor or licensed retailer who shall fail to
5 make such report or pay such tax,
within the time prescribed, shall
6 be subject to the same penalties
and interest charges prescribed
7 by the motor-vehicle fuel
or, special fuel or aviation
fuel tax law for
8 failure of a licensed distributor
to make monthly reports and pay-
9 ments of motor-vehicle fuel
or, special fuel or aviation
fuel tax. The
10 provisions of the motor-fuel tax law
relating to remedies for the
11 collection of delinquent motor-fuel
taxes from distributors shall
12 apply to the collection of taxes imposed
by this section which have
13 become delinquent from licensed
distributors and licensed retail-
14 ers. All taxes, penalties and interest
collected by the director under
15 the tax imposed by this section shall be
paid by the director into
16 the state treasury and the state
treasurer shall credit the same to
17 the funds and in the amounts specified
in K.S.A. 79-34,142, and
18 amendments thereto.
19 (b) Whenever the rate
of tax upon motor-vehicle fuels or,
spe-
20 cial fuels or aviation fuels
fixed pursuant to K.S.A. 79-3408, and
21 amendments thereto, which become
effective on July 1, 1989
1998,
22 or on July 1 in any year thereafter is
less than the rate of tax upon
23 such fuel in effect on the preceding
day, the licensed distributor
24 or licensed retailer owning such fuel at
12:01 a.m. on the date such
25 reduction in taxes becomes effective
shall be entitled to a refund
26 of taxes paid upon such fuel in an
amount equal to the amount by
27 which taxes were reduced from the amount
of motor-vehicle fuels
28 or, special
fuels or aviation fuels taxes per gallon, or fraction
thereof,
29 actually paid upon each gallon, or
fraction thereof, of motor-ve-
30 hicle fuels
or, special fuels or aviation
fuels multiplied by the number
31 of gallons of motor-vehicle fuels
or, special fuels or aviation
fuels
32 owned by the distributor or dealer on
such date. On or before the
33 25th day of the month in which such tax
is reduced, every such
34 distributor and retailer shall make a
report to the director on a
35 form prescribed and furnished by the
director showing the total
36 number of gallons of such motor-vehicle
fuel or, special fuel
or
37 aviation fuel owned by such
distributor or retailer at 12:01 a.m. on
38 the date upon which such tax was
reduced. It shall be the duty of
39 the director of taxation to examine all
such claims and determine
40 the amount to which each claimant is
entitled. In the event any
41 distributor or retailer entitled to such
refund shall owe the state
42 any motor-vehicle fuel
or, special fuel or aviation
fuel tax, penalties,
43 or interest, the refund authorized by
this section shall upon being
SB 542--Am. by H
24
1 determined by the director be
credited upon the amount of such
2 taxes, penalties and interest.
Whenever the director shall deter-
3 mine that any distributor or
retailer shall be entitled to a refund
4 under any of the provisions of
this section, and such refund cannot
5 be effected by giving credit
therefor, as hereinbefore provided, or
6 against the future motor-vehicle
fuel or, special fuel or
aviation fuel
7 tax liability of such taxpayer the
director shall certify the amount
8 of the refund to the state
director of accounts and reports, who
9 shall draw a warrant for the
amount so certified on the state trea-
10 surer in favor of the distributor or
retailer entitled to such refund,
11 and mail, or otherwise deliver, the same
to the distributor entitled
12 thereto. Such warrant shall be paid by
the state treasurer to such
13 distributor or retailer from the
motor-vehicle fuel or special fuel
motor
14 fuels tax refund fund.
15 Sec. 12. K.S.A.
79-3409 is hereby amended to read as follows:
16 79-3409. Every distributor paying such
tax or being liable for the
17 payment shall be entitled to charge and
collect such tax on motor-
18 vehicle fuels
or, special fuels or aviation
fuels sold or delivered by
19 such distributor, as a part of the
selling price. When the price of
20 motor-vehicle fuels
or, special fuels or aviation
fuels posted on a
21 price sign does not include the state
and federal tax the total of
22 the taxes must be shown in numbers the
same size as the price of
23 the motor fuel. Any deviation from the
maximum price charged
24 for a given grade of motor-vehicle
fuels or, special fuels or
aviation
25 fuels must be stated in letters
at least six inches high and legible.
26 Fractions of cents must be posted in
numbers at least 1/5 the height
27 of the whole number.
28 Sec. 13. K.S.A.
79-3410 is hereby amended to read as follows:
29 79-3410. (a) Except as hereinafter
provided, every distributor,
30 manufacturer, importer, exporter or
retailer of motor-vehicle fu-
31 els or,
special fuels or aviation fuels, on or before the
25th day of
32 each month, shall render to the director
at the director's office in
33 Topeka, Kansas, upon a form prescribed,
prepared and furnished
34 by the director a report certified to be
true and correct showing
35 the number of gallons of motor-vehicle
fuels or, special fuels
or
36 aviation fuels received by such
distributor, manufacturer, importer,
37 exporter or retailer during the
preceding calendar month, and
38 such further information as the director
shall require. Every dis-
39 tributor and importer shall be exempt
from reporting to the di-
40 rector exempt sales to the end user of
special fuel which is indelibly
41 dyed in accordance with regulations
prescribed pursuant to 26
42 U.S.C. 4082. Every distributor,
manufacturer or importer within
43 the time herein fixed for the rendering
of such reports, shall com-
SB 542--Am. by H
25
1 pute and shall pay to the director
at the director's office the
2 amount of taxes due to the state
on all motor-vehicle fuels or,
spe-
3 cial fuels or aviation
fuels received by such distributor, manufac-
4 turer or importer during the
preceding calendar month.
5 (b) The
director may waive the requirement for monthly re-
6 ports from licensed manufacturers,
who are also licensed distrib-
7 utors, when all taxes accrued
under either or both licenses or
8 which might accrue are paid under
the distributor license. All taxes
9 imposed under the provisions of
this act not paid on or before the
10 25th day of the month succeeding the
calendar month in which
11 the motor-vehicle fuels
or special fuels or aviation fuels
were re-
12 ceived by the distributor, manufacturer
or importer shall be
13 deemed delinquent and shall bear
interest at the rate per month,
14 or fraction thereof, prescribed by
subsection (a) of K.S.A. 79-2968,
15 and amendments thereto, from such due
date until paid, and in
16 addition thereto there is hereby imposed
upon all amounts of such
17 taxes remaining due and unpaid after
such due date a penalty in
18 the amount of 5%, and the penalty shall
be by the director added
19 to and collected as a part of the taxes.
If the distributor, manufac-
20 turer or importer furnishes evidence to
the director that the de-
21 linquency was due to causes beyond such
person's reasonable con-
22 trol, and if in the opinion of the
director the delinquency was not
23 the result of willful negligence of the
distributor, manufacturer or
24 importer the penalty or interest or both
may be waived or reduced
25 by the director.
26 If any person shall file a
false or fraudulent return or fail to file
27 a return with intent to evade the tax
imposed by this act, there
28 shall be added to the amount of
deficiency determined by the di-
29 rector a penalty equal to 100% of the
deficiency together with the
30 interest at the rate per month or
fraction thereof, prescribed by
31 subsection (a) of K.S.A. 79-2968, and
amendments thereto, on such
32 deficiency from the date such tax was
due to the date of payment,
33 in addition to all other penalties
prescribed by law. Every manu-
34 facturer, refiner or terminal operator
of motor-vehicle fuels or,
35 special fuels or aviation
fuels shall daily send reports to the director
36 of all sales of liquid fuels. The
reports are to be made on forms
37 prescribed, prepared and furnished by
the director or on forms
38 furnished by the manufacturer and
approved by the director.
39 (c) Whenever the
secretary or the secretary's designee deter-
40 mines that the failure of the taxpayer
to comply with the provisions
41 of subsection (b) was due to reasonable
causes, the secretary or
42 the secretary's designee may waive or
reduce any of the penalties
43 and may reduce the interest rate to the
underpayment rate pre-
SB 542--Am. by H
26
1 scribed and determined for the
applicable period under section
2 6621 of the federal internal
revenue code as in effect on January
3 1, 1994, upon making a record of
the reasons therefor.
4
Sec. 14. K.S.A. 79-3415 is hereby amended to read as
follows:
5 79-3415. Each distributor,
manufacturer, importer, exporter, re-
6 tailer or user shall maintain and
keep, for a period of three years,
7 a full record or records of all
motor-vehicle fuels or, special
fuels
8 or aviation fuels received,
used or sold and delivered within this
9 state by such distributor,
manufacturer, importer, exporter, re-
10 tailer or user, together with invoices
and bills of lading thereof,
11 and such other pertinent papers as may
be required by the direc-
12 tor.
13 Sec. 15. K.S.A.
79-3416 is hereby amended to read as follows:
14 79-3416. Every railroad, street
railroad, interurban railroad or
15 suburban railroad, every pipeline
company, every common car-
16 rier, and every carrier for hire, who
shall transport any liquid fuels,
17 motor-vehicle fuels
or, special fuels or aviation
fuels, from any point
18 outside of this state into this state,
or between any two points in
19 this state, or from any point in this
state to any point outside this
20 state, and every private carrier or
other person who shall transport
21 any liquid fuels, motor-vehicle
fuels or, special fuels or
aviation fuels
22 from any other state into this state, or
from this state into another
23 state, or shall transport any liquid
fuels, motor-vehicle fuels or,
24 special fuels or aviation
fuels exceeding 500 gallons in amount, for
25 any distance exceeding 25 miles within
this state, shall render a
26 written report, under oath, to the
director, on forms prescribed
27 and furnished by the director, of all
such transportation of liquid
28 fuels, motor-vehicle fuels
or, special fuels or aviation
fuels so made
29 to or from points within this state.
Every such report shall cover a
30 period of one calendar month and shall
be rendered to the director
31 on or before the 15th day of the month
succeeding the month
32 covered by such report, and shall show
the true name and address
33 of the consignor and the consignee, and
if delivery has been to
34 some person other than the original
consignee, the name and ad-
35 dress of the person to whom delivery was
actually made, the date
36 and the point of delivery, and the name
and the number of gallons
37 of the liquid fuels, the motor-vehicle
fuels or, the special fuels
or
38 aviation fuels delivered. If such
transportation was by tank car, such
39 report shall also show the number and
initials of each tank car, if
40 such transportation was by motor truck
such report shall show the
41 motor and license number of each truck,
and if such delivery was
42 made by any other means the report shall
show the manner in
43 which such transportation and delivery
was made; such records
SB 542--Am. by H
27
1 and reports are required pursuant
to the police and taxing powers
2 of this state for the purpose of
promoting the public health and
3 safety and of aiding in the
administration of the tax on motor-
4 vehicle fuels or special
fuels.
5 Every carrier or
other person transporting motor-vehicle fuel
6 or,
special fuel or aviation fuel by tank car, tank
truck or trailer from
7 a refinery, place of manufacture
or production, or pipeline ter-
8 minal, or importing motor-vehicle
fuel or, special fuel or
aviation
9 fuel into this state by
tank car, tank truck or trailer for use, sale,
10 or delivery in the state of Kansas shall
carry a manifest on forms
11 prescribed, prepared and furnished by
the director or on forms
12 furnished by the manufacturer, refiner
or terminal operator and
13 approved by the director showing the
date of the use, sale, or de-
14 livery, the purchaser and the
purchaser's address, the point of de-
15 livery, the product type or types and
the quantity sold corrected
16 to 60 degrees Fahrenheit, the means of
delivering, including the
17 license number, if any, liquid-fuels
carrier's license number, and
18 other number and description of such
tank car, tank truck or
19 trailer. Any manifest, bill of lading,
shipping paper or invoice for
20 special fuel which is indelibly dyed in
accordance with regulations
21 prescribed pursuant to 26 U.S.C. 4082
shall include the statement
22 ``DYED DIESEL FUEL, NONTAXABLE USE ONLY,
PENALTY
23 FOR TAXABLE USE.'' Every person
receiving motor-vehicle fuel
24 or, special
fuel or aviation fuel or any part of the same shall
receipt
25 at the place provided on such manifest
for the quantity received
26 by such person. The director may
prescribe the number of copies
27 of such manifest and the manner and time
of delivering the same
28 to the director, ports of entry, or
other disposition of copy by the
29 carrier, consignor, consignee,
distributor, or other person in any
30 manner connected with or dealing with
such shipment.
31 For the period
July 1, 1995 through June 30, 1996, the point of
delivery
32 referred to in this section shall
include at a minimum the city and state
33 of actual delivery. On and after
July 1, 1996, The point of delivery
34 referred to in this section shall
include at a minimum the address,
35 city and state of actual delivery. The
facility number issued by the
36 Kansas department of health and
environment, authorized under
37 K.S.A. 65-34,100 et seq., and amendments
thereto, may be substi-
38 tuted in lieu of the point of
delivery.
39 Sec. 16. K.S.A.
79-3417 is hereby amended to read as follows:
40 79-3417. Every distributor shall be
entitled to a refund from the
41 state of the amount of motor-vehicle
fuels or, special fuels or
avi-
42 ation fuels tax paid on any
motor-vehicle fuels or, special
fuels or
43 aviation fuels of 100 gallons or
more in quantity, which are lost or
SB 542--Am. by H
28
1 destroyed at any one time while
such distributor is the owner
2 thereof, through theft, leakage,
fire, explosion, lightning, flood,
3 storm or other cause beyond the
control of the distributor. Such
4 distributor shall notify the
director in writing of such loss or de-
5 struction, the specific cause
thereof, and the amount of motor-
6 vehicle fuel
or, special fuel or aviation
fuel so lost or destroyed,
7 within 60 days from the date of
such loss or destruction. Within 30
8 days after notifying the director
of such loss or destruction such
9 distributor shall file with the
director an affidavit on oath, stating
10 the full circumstances and amount of the
loss or destruction and
11 other information requested by the
director.
12 The director shall examine
all such claims and determine the
13 amount to which the claimant is
entitled. If any distributor entitled
14 to a refund owes the state any
motor-vehicle fuel or, special
fuel
15 or aviation fuel tax, penalties,
or interest, the refund authorized by
16 this section shall be credited upon such
taxes, penalties and inter-
17 est. When the director determines that
any distributor is entitled
18 to a refund under this section, and such
refund cannot be effected
19 by giving credit therefor, the director
shall sign a voucher for the
20 refund. Such amount shall be paid to the
distributor from the rev-
21 enue administration fee fund.
22 Sec. 17. K.S.A.
79-3419 is hereby amended to read as follows:
23 79-3419. The director of taxation shall
enforce the provisions of
24 this act. The secretary of revenue shall
adopt rules and regulations
25 for the administration of this act. In
the performance of the direc-
26 tor's duties, the director of taxation
may call upon the law enforce-
27 ment officers of this state to perform
their several duties within
28 their respective jurisdiction, and it
shall be the duty of each such
29 law enforcement officer to render aid in
the enforcement of the
30 provisions of this act.
31 The county attorneys of
the several counties of this state shall
32 prosecute all violations of the
provisions of this act, and all civil
33 proceedings arising or pending in their
respective counties for re-
34 covery of taxes, penalties or interest,
arising under the provisions
35 of this act. The director of taxation
may request of the attorney
36 general the aid and assistance of the
Kansas bureau of investiga-
37 tion for investigation of special cases.
The director of taxation, the
38 director of vehicles and the attorney
general shall communicate
39 to each other all information received
concerning violations of the
40 provisions of the motor-fuel tax law and
also all information con-
41 cerning suspected violations which in
the opinion of any one of
42 them requires investigation.
43 The director of taxation
shall designate auditors, appointed in
SB 542--Am. by H
29
1 writing by the director, to engage
in the enforcement of the pro-
2 visions hereof. Such auditors
shall check distributors, retailers, re-
3 fund permit holders or any person
who uses, stores, transports,
4 sells or delivers liquid fuels,
motor-vehicle fuels or, special
fuels or
5 aviation fuels to insure
strict compliance with the provisions of the
6 motor-fuel tax law. The director
or such auditor shall have au-
7 thority to administer oaths, issue
subpoenas, compel the attend-
8 ance of witnesses and the
production of books, papers, accounts,
9 documents and testimony.
10 In case of disobedience on
the part of any person to comply with
11 any subpoena issued hereunder, or the
refusal of any witness to
12 testify to any matter regarding which
such person may be lawfully
13 interrogated, it shall be the duty of
the district court of the proper
14 county, or the judge thereof on
application of such director or
15 auditor to compel obedience by
proceedings for contempt, as in
16 the case of disobedience of the
requirements of a subpoena issued
17 from such court or a refusal to testify
therein.
18 Sec. 18. K.S.A.
79-3420 is hereby amended to read as follows:
19 79-3420. The director, or any deputy or
agent appointed in writing
20 by the director, is hereby authorized to
examine the books, papers,
21 records, storage tanks, tank wagons,
trucks and any other equip-
22 ment of any distributor, dealer,
transporter, manufacturer, im-
23 porter, exporter, retailer, user or any
other person, pertaining to
24 the use, storage, transportation or sale
and delivery of liquid fuels,
25 motor-vehicle fuels
or, special fuels or aviation
fuels, to verify the
26 accuracy of any report, statement or
payment made under the pro-
27 visions of this act, or to ascertain
whether or not all reports and
28 tax payments required by this act have
been made. Any informa-
29 tion gained by the director, the
director's deputies or agents, as
30 the result of the reports,
investigations and verifications herein
31 required to be made, shall be
confidential, and shall not be di-
32 vulged by any person except as herein
provided. Every distributor,
33 dealer, transporter, manufacturer,
importer, exporter, retailer or
34 user and every person handling or
possessing any liquid fuels, mo-
35 tor-vehicle fuels
or, special fuels or aviation
fuels shall give the di-
36 rector, or the director's deputy or
agent appointed in writing, full
37 and free access during reasonable
business hours to all the papers,
38 records and property mentioned, with
full opportunity to examine
39 the same. The director, or any deputy or
agent appointed in writ-
40 ing by the director, shall examine
returns and shall determine the
41 correct amount of the tax. If the tax
found due shall be greater
42 than the amount paid, or if a claim for
a refund is denied, notice
43 shall be mailed to the taxpayer. Within
60 days after the mailing
SB 542--Am. by H
30
1 of such notice, the taxpayer may
request an informal conference
2 with the secretary of revenue or
the secretary's designee relating
3 to the tax liability by filing a
written request with the secretary of
4 revenue or the secretary's
designee. Based on the evidence pre-
5 sented at such informal
conference, the secretary of revenue or
6 the secretary's designee shall
make a final determination within
7 the period prescribed by K.S.A.
79-3226, and amendments thereto,
8 and shall notify the taxpayer of
such decision and, if additional
9 amounts are found to be due, such
decision shall be accompanied
10 by a notice and demand for payment.
Notice under this section
11 shall be sent by first-class mail. The
tax shall be paid within 20 days
12 thereafter, together with interest at
the rate per month prescribed
13 by subsection (a) of K.S.A. 79-2968, and
amendments thereto, on
14 the additional tax from the date the tax
was due unless an appeal
15 is taken in the manner provided by law,
but no additional tax shall
16 be assessed for less than $5. Interest
at such rate shall continue to
17 accrue on any additional tax liability
during the course of any ap-
18 peal.
19 Whenever the director of
taxation has reason to believe that a
20 person liable for tax under any
provisions of the motor-fuel tax law
21 is about to depart from the state or to
remove such person's prop-
22 erty therefrom, or to conceal oneself or
such person's property
23 therein, or to do any other act tending
to prejudice, jeopardize or
24 render wholly or partly ineffectual the
collection of such motor-
25 fuel tax unless proceedings be brought
without delay, the director
26 shall immediately make an assessment for
all motor-fuel tax due
27 from such taxpayer, noting such finding
on the assessment. The
28 assessment shall be made on the basis of
emergency proceedings
29 in accordance with the provisions of
K.S.A. 77-536, and amend-
30 ments thereto. Thereupon, a warrant
shall be issued for the col-
31 lection of the tax as provided in K.S.A.
79-3412, and amendments
32 thereto, except that there shall be no
10-day waiting period before
33 assessment is issued. The taxpayer,
within 15 days from the date
34 of filing of such warrant, may request
an informal conference with
35 the secretary of revenue or the
secretary's designee on the cor-
36 rectness of the assessment. The director
may publish the gallons
37 received by each licensed motor-vehicle
fuel or, special fuel or
avi-
38 ation fuel distributor and the
deductions claimed by such distribu-
39 tor and such publication shall be an
exception to the confidentiality
40 provisions of K.S.A. 75-5133, and
amendments thereto. The direc-
41 tor may also make available or furnish
information to the taxing
42 officials of any other state or of the
federal government, or the
43 director of property valuation, in the
manner as provided in K.S.A.
SB 542--Am. by H
31
1 74-2424, and amendments
thereto.
2
Sec. 19. K.S.A. 79-3421 is hereby amended to read as
follows:
3 79-3421. The director is hereby
authorized to pay out of any avail-
4 able funds in the revenue
administration fee fund, hereinafter pro-
5 vided, to any person, other than a
public officer or employee, who
6 shall first furnish the director
information of violation by any per-
7 son of any of the provisions of
this act, involving unlawful evasion
8 of any motor-vehicle-fuels
or, special fuels or aviation
fuels tax, such
9 sum as the director may deem
proper, not exceeding 10% of the
10 amount of tax so evaded or sought to be
evaded; but such amount
11 shall only be paid upon the sworn
voucher of the claimant therefor
12 and after collection of delinquent tax
shall have been effected, or
13 the person complained against shall have
been convicted of vio-
14 lation of some provision of this
act.
15 Sec. 20. K.S.A.
79-3424 is hereby amended to read as follows:
16 79-3424. The business of using,
manufacturing or selling of motor-
17 vehicle fuels
or, special fuels or aviation
fuels shall not be subject to
18 any excise, license, privilege or
occupation tax other than the one
19 herein imposed, whether such tax be
imposed by the state of Kan-
20 sas or by any municipal corporation or
other political subdivision
21 of this state; and no municipal
corporation, or other political sub-
22 division of this state, shall levy or
collect any tax upon, or measured
23 by, the sale, receipt, distribution or
use of motor-vehicle fuel or,
24 special fuel or aviation
fuel, or any excise, license, privilege, or oc-
25 cupational tax upon the business of
manufacturing, using, selling
26 or delivering motor-vehicle fuels
or, special fuels or aviation
fuels.
27 Sec. 21. K.S.A.
79-3425 is hereby amended to read as follows:
28 79-3425. (a) All
of the amounts collected under the motor-fuel tax
29 law and amendments thereto, except
amounts collected pursuant
30 to K.S.A. 79-3408c, and amendments
thereto, shall be remitted by
31 the director to the state treasurer
daily, and the state treasurer
32 shall deposit all such amounts in the
state treasury. The state trea-
33 surer shall credit such amount thereof
as the director shall order
34 in the motor-vehicle
fuel motor fuels tax refund fund to be used
for
35 the purpose of paying motor-vehicle fuel
tax refunds as provided
36 by law. The state treasurer shall credit
the remainder of such
37 amounts as follows: To the state
freeway highway fund which
fund is
38 hereby created, amounts
specified in K.S.A. 79-34,142, and amend-
39 ments thereto, to be expended in the
manner provided in K.S.A.
40 68-2301 et seq.,
and amendments thereto, to a special city and
41 county highway fund which is hereby
created, amounts specified
42 in K.S.A. 79-34,142, and amendments
thereto, to be apportioned
43 and distributed in the manner provided
in K.S.A. 79-3425c, and
SB 542--Am. by H
32
1 amendments thereto,
and to the Kansas qualified agricultural
ethyl
2 alcohol producer incentive fund,
which is hereby created in the
3 state treasury, in the amount and
in the manner specified in K.S.A.
4 79-34,161, and amendments
thereto, to be expended in the manner
5 provided in K.S.A.
79-34,162, and amendments thereto, and to the
6 public use general aviation
airport development fund, amounts specified
7 in K.S.A. 79-34,142, and
amendments thereto, to be expended in accord-
8 ance with the provisions of K.S.A.
75-5061, and amendments thereto.
9
(b) On each day, after the state treasurer has
received certification
10 from the secretary of
transportation that provisions have been made for
11 the payment of the pro rata share
of the amount required to be paid on
12 the next ensuing payment date of
either the principal of or the interest
13 on the outstanding highway bonds
issued pursuant to K.S.A. 68-2304 and
14 amendments thereto, the state
treasurer shall transfer from the state free-
15 way fund to the state highway fund
an amount specified in K.S.A. 79-
16 34,143, and amendments
thereto.
17 Sec. 22. K.S.A.
79-3461 is hereby amended to read as follows:
18 79-3461. A revolving fund designated as
the motor-vehicle fuel motor
19 fuels tax refund fund not to
exceed one million dollars ($1,000,000)
20 $1,000,000 shall be set apart and
maintained by the director from
21 the motor-vehicle
fuel motor fuels tax collected under the
provisions
22 of article 34 of chapter 79 of the
General Statutes of 1935 and the
23 1947 Supplement thereto and acts
amendatory thereof or supplemental
24 Kansas Statutes Annotated, and
amendments thereto, and held by the
25 state treasurer for the payment of all
refunds authorized by this
26 act.
27 Sec. 23. K.S.A.
79-3464d is hereby amended to read as follows:
28 79-3464d. (a) Any person who is
responsible for the collection or
29 payment of motor vehicle fuel
or, special fuel or aviation
fuel tax or
30 control, receipt, custody or disposal of
funds due and owing under
31 the Kansas motor fuel tax law who fails
to collect such tax, or ac-
32 count for and pay over such tax or
attempts in any manner to evade
33 or defeat such tax or the payment
thereof, shall be personally liable
34 for the total amount of the tax evaded,
or not collected, or not
35 accounted for and paid over, together
with any interest and pen-
36 alty imposed thereon. The provisions of
this section shall apply
37 regardless of the relationship with the
licensee held by such person
38 and regardless of the business form of
the licensee.
39 (b) Any person having
control or supervision of or supervising
40 employees having control or supervision
of the collection, filing of
41 returns, accounting or payment of motor
vehicle fuel or, special
42 fuel or aviation fuel
taxes of a licensee shall be personally liable for
43 the tax, penalty and interest thereon,
if the licensee fails to collect
SB 542--Am. by H
33
1 the tax, file returns, pay the tax
or attempts in any manner to evade
2 or defeat the tax.
3 (c) The
liability of each officer, director, shareholder or em-
4 ployee for a corporation's failure
to collect the tax, file returns or
5 pay any liability due survives the
dissolution of the corporation.
6 (d) The
liability of each member for a limited liability com-
7 pany's failure to collect the tax,
file returns or pay any liability due
8 survives the dissolution of the
limited liability company.
9 (e) Evidence of
personal or individual responsibility for the
10 collection or payment of taxes, filing
return, control, receipt, cus-
11 tody or disposal of funds may include
any one or more of the fol-
12 lowing:
13 (1) Signatory on any
tax registration form;
14 (2) signatory on any
tax return;
15 (3) authorization to
sign tax registration forms or tax returns;
16 (4) authorization to
draw on the licensee's funds;
17 (5) authorization to
pledge licensee's assets as collateral to re-
18 ceive loans, advances or lines of credit
from thrift institutions on
19 behalf of the corporations;
20 (6) authorization to
bind the licensee to contracts for sales or
21 purchases in day-to-day business
operations; or
22 (7) authorization to
directly supervise employees who are au-
23 thorized to perform any one or all of
the above.
24 Sec. 24. K.S.A.
79-3464e is hereby amended to read as follows:
25 79-3464e. (a) It shall be unlawful for
any distributor, importer,
26 exporter, manufacturer, retailer, user,
carrier, transporter or any
27 other person to:
28 (1) Use, sell,
manufacture or deliver any motor-vehicle fuels
or,
29 special fuels or aviation
fuels at any place without having a valid,
30 unsuspended and unrevoked license as
required by this act;
31 (2) fail, neglect or
refuse to render to the director at the di-
32 rector's office, within the time
required by the provisions of this
33 act, any report or statement required by
or purporting to be under
34 the provisions of this act, or
purporting to be under the rules and
35 regulations promulgated by the director
under such provisions;
36 (3) fail, neglect or
refuse to pay the director, within the time
37 required by this act, any tax, taxes,
interest or penalties for which
38 such person is liable under the
provisions of this act;
39 (4) fail, neglect or
refuse to keep and maintain for a period of
40 three years, or fail to make fully and
freely accessible during busi-
41 ness hours to the director, the
director's deputy or agent, all books,
42 papers and records required by this act
to be kept and maintained
43 and so made accessible;
SB 542--Am. by H
34
1 (5) use any
motor fuels purchased as exempt in a taxable man-
2 ner;
3 (6) sell,
receive or transport motor fuels without proper and
4 correct manifests;
5 (7) sell or
hold for sale dyed fuel that such person knows or has
6 reason to know will not be used
for a nontaxable purpose;
7 (8) violate any
other provision of this act not specified in this
8 section;
9 (9) aid and
abet in violations contained in paragraphs (1)
10 through (8);
11 (10) falsify, forge
or willfully conceal from the director or di-
12 rector's agent, any books, papers and
records required by this act;
13 (11) knowingly submit
a false or forged application for licen-
14 sure under this act;
15 (12) knowingly make
any false or forged application for a re-
16 fund permit or claim for refund or to
knowingly make any false
17 statement in any application for a
refund permit, or in any claim
18 for a refund;
19 (13) present, or
cause to be presented, to the director for
20 credit, or for refund, any false, forged
or altered invoice of refund;
21 (14) falsify, forge
or alter any documents associated with the
22 use, sale, manufacture or delivery of
any motor fuels;
23 (15) deliver or
accept delivery, with the intent to evade the
24 obligation of collecting, remitting or
accounting for motor fuel tax
25 to this state, any motor fuel, knowing
that the manifest or bill of
26 lading indicates that the motor fuel was
intended to be delivered
27 to a tax exempt entity or intended to be
delivered to a location
28 outside the state of Kansas;
29 (16) use dyed fuel
other than for a nontaxable use;
30 (17) willfully alters
or attempts to alter, the strength or com-
31 position of any dye in any dyed fuel;
or
32 (18) aid and abet in
violations contained in paragraphs (10)
33 through (17).
34 (b) Violation of
paragraphs (1) through (9) is a misdemeanor.
35 Any person convicted of such violation
shall be punished by a fine
36 of not less than $1,000 nor more than
$10,000, or imprisoned in
37 the county jail for not less than 30
days nor more than one year,
38 or by both such fine and imprisonment.
Upon a second or subse-
39 quent conviction, such person shall be
punished by a fine of not
40 less than $5,000 nor more than $50,000,
or by imprisonment in
41 the county jail for not less than 60
days nor more than two years,
42 or by both such fine and
imprisonment.
43 (c) Violation of
paragraphs (10) through (18) is a severity level
SB 542--Am. by H
35
1 10, nonperson felony.
2 (d) For any
violations of this section, the director may suspend
3 or revoke any license issued to
any person found to be in violation
4 and assess an administrative
penalty of $10 per gallon of motor
5 fuels involved, or a penalty of
not less than $1,000 nor more than
6 $10,000; and upon a second or
subsequent violation, a penalty of
7 $25 per gallon of motor fuels
involved or a penalty of not less than
8 $5,000 nor more than
$50,000.
9
Sec. 25. K.S.A. 79-34,141 is hereby amended to read as
fol-
10 lows: 79-34,141. On and after July
1, 1992 1998, the tax rates
im-
11 posed under this act shall be not less
than:
12 (a) On motor-vehicle
fuels, $.18 per gallon, or fraction thereof;
13 (b) on special fuels,
$.20 per gallon, or fraction thereof; and
14 (c) on LP-gas, $.17
per gallon, or fraction thereof.;
and
15 (d) on aviation fuels
$.06 per gallon, or fraction thereof.
16 Sec. 26. K.S.A.
79-34,142 is hereby amended to read as fol-
17 lows: 79-34,142. (a) Except as
provided in subsection (b), on and after
18 August 1, 1989
1998, the state treasurer shall credit amounts
re-
19 ceived pursuant to K.S.A. 79-3408,
79-3408c, 79-3491a, 79-3492
20 and 79-34,118 and amendments thereto as
follows: To the state
21 freeway highway
fund 59.5% and to the special city and county high-
22 way fund 40.5%.
23 (b) On and
after August 1, 1998, the state treasurer shall credit
24 amounts received pursuant to K.S.A.
79-3408 and 79-3408c, and amend-
25 ments thereto, from the taxation of
aviation fuels to the public use general
26 aviation airport development
fund.
27 Sec. 4
[5] 27. K.S.A.
[8-116a, 79-3401, 79-3402, 79-3403, 79-
28 3405, 79-3406, 79-3407, 79-3408,
79-3408c, 79-3408g, 79-3409, 79-
29 3410, 79-3415, 79-3416, 79-3417,
79-3419, 79-3420, 79-3421, 79-
30 3424, 79-3425, 79-3461, 79-3464d,
79-3464e, 79-34,141, 79-34,142
31 and 79-34,143 and
K.S.A.] 1997 Supp. 8-135 and 8-145 are hereby
32 repealed.
33 Sec. 5
[6] 28. This act
shall take effect and be in force from and
34 after its publication in the statute
book.
35