Session of 1999
         
HOUSE BILL No. 2070
         
By Committee on Transportation
          
1-21
          
  9             AN  ACT concerning the taxation of motor fuels; relating to aviation fuel;
10             amending K.S.A. 79-3401, 79-3402, 79-3403, 79-3405, 79-3406, 79-
11             3410, 79-3415, 79-3416, 79-3417, 79-3419, 79-3420, 79-3421, 79-3424,
12             79-3425, 79-3461, 79-3464d, 79-3464e, 79-34,141 and 79-34,142 and
13             K.S.A. 1998 Supp. 79-3407, 79-3408, 79-3408c and 79-3409 and re-
14             pealing the existing sections; also repealing K.S.A. 79-34,143.
15      
16       Be it enacted by the Legislature of the State of Kansas:
17             Section  1. K.S.A. 79-3401 is hereby amended to read as follows: 79-
18       3401. This act, and amendments thereto, shall be known and may be
19       cited as the "motor-fuel tax law," and as so constituted is hereinafter
20       referred to as "this act." The following words, terms and phrases, when
21       used in this act, shall have the meanings ascribed to them in this section,
22       except in those instances clearly indicating a different meaning:
23             (a) "Aviation fuel" means motor fuels for use as fuel for aircraft;
24             (b) "agricultural ethyl alcohol" means a motor-vehicle fuel compo-
25       nent with a purity of at least 99%, exclusive of any added denaturants,
26       denatured in conformity with one of the methods approved by the United
27       States department of the treasury, bureau of alcohol, tobacco and fire-
28       arms, and distilled in the United States of America from grain produced
29       in the United States of America;
30             (c) "bulk plant" means a motor fuels storage facility, other than a
31       terminal, that is primarily used to redistribute motor fuels;
32             (d) "dealer" means any person engaged in the retail sale of motor-
33       vehicle fuels or, special fuels or aviation fuels;
34             (e) "director" means the director of taxation, a duly authorized dep-
35       uty, agent or representative;
36             (f) "distributor" means any person, who:
37             (1) Imports or causes to be imported from any other state or territory
38       of the United States motor-vehicle fuels or, special fuels or aviation fuels
39       for such person's own use in the state of Kansas, or for sale and delivery
40       therein, after the same shall have come to rest or storage therein, whether
41       or not in the original package, receptacle or container; or
42             (2) imports or causes to be imported, from a foreign country, motor-
43       vehicle fuels or, special fuels or aviation fuels for such person's own use

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  1       in the state of Kansas, or for sale and delivery therein, after the same
  2       shall have come to rest or storage, whether or not in the original package,
  3       receptacle or container;
  4             (3) purchases or receives motor-vehicle fuels or , special fuelsor avi-
  5       ation fuels in the original package, receptacle or container in the state of
  6       Kansas for such person's own use therein, or for sale and delivery therein,
  7       from any person who has imported the same from any other state or
  8       territory of the United States, or any other nation, in case such motor-
  9       vehicle fuels or special fuels have not, prior to such purchase or receipt,
10       come to rest or storage in the state of Kansas; or
11             (4) received and, in any manner, uses, sells or delivers motor-vehicle
12       fuels or, special fuels or aviation fuels in the state of Kansas on which the
13       tax provided for in this act has not been previously paid;
14             (g) "exporter" means any person who exports or causes to be exported
15       motor vehicle fuels or, special fuels or aviation fuels from Kansas to any
16       other state or territory of the United States or to a foreign country, for
17       such person's own use or for sale or delivery therein, whether or not in
18       the original package, receptacle or container;
19             (h) "importer" means any person who imports or causes to be im-
20       ported motor-vehicle fuels or, special fuels or aviation fuels from any
21       other state or territory of the United States or from a foreign country, for
22       such person's own use in the state of Kansas or for sale or delivery therein,
23       whether or not in the original package, receptacle or container;
24             (i) "liquid fuels" or "motor fuels" means any inflammable liquid by
25       whatever name such liquid shall be known or sold, which is used, or
26       practically or commercially usable, either alone or when mixed or com-
27       bined in an internal-combustion engine for the generation of power;
28             (j) "manufacturer" or "refiner" means any person who or which pro-
29       duces, refines, prepares, blends, distills, manufactures or compounds mo-
30       tor-vehicle fuels or, special fuels or aviation fuels in the state of Kansas
31       for such person's own use therein, or for sale or delivery therein. The
32       term "manufacturer" shall not include any person who or which mechan-
33       ically separates liquids from natural gas at production facilities or gath-
34       ering system pipelines on the lease. No person who produces, refines,
35       prepares, blends, distills, manufactures, or compounds motor-vehicle fu-
36       els or, special fuels or aviation fuels shall be required to render a distrib-
37       utor's (manufacturer's) report as to any particular lot or lots of motor-
38       vehicle fuels or, special fuels or aviation fuels until such motor-vehicle
39       fuels or, special fuels or aviation fuels have been loaded at a refinery or
40       other place of production into tank cars, or placed in any tank at such
41       refinery or other place of production from which any withdrawals are
42       made direct into tanks, tank wagons or other types of transportation
43       equipment, containers or facilities;

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  1             (k) "motor vehicle" means a motor vehicle as defined by K.S.A. 8-
  2       126, and amendments thereto, and which is required to be registered
  3       pursuant to K.S.A. 8-126 et seq., and amendments thereto;
  4             (l) "motor-vehicle fuels" means gasoline, casinghead gasoline, natural
  5       gasoline, drip gasoline, aviation gasoline, gasohol, gasoline-oxygenate
  6       blend and any other spark-ignition motor fuel as defined by the 1995
  7       United States department of commerce, national institute of standards
  8       and technology handbook 130 issued December of 1994, and as may
  9       subsequently be defined in rules and regulations which the director may
10       adopt pursuant to K.S.A. 79-3419, and amendments thereto;
11             (m) "oil inspector" means the director of taxation, a duly authorized
12       deputy, agent or representative;
13             (n) "person" means every natural person, association, partnership,
14       limited partnership, limited liability company or corporation. When used
15       in any statute, prescribing and imposing a fine or imprisonment, or both,
16       the term "person" as applied to firms and associations means the partners
17       or members thereof and, as applied to corporations, the corporation and
18       the officers thereof;
19             (o) "public highways" means and includes every way or place, of
20       whatever nature, generally open to the use of the public as a matter of
21       right, for the purposes of vehicular travel and notwithstanding that the
22       same shall have been temporarily closed for the purpose of construction,
23       reconstruction or repair;
24             (p) "received" means motor-vehicle fuel or, special fuel or aviation
25       fuel produced, refined, prepared, distilled, manufactured, blended or
26       compounded at any refinery or other place, in the state of Kansas by any
27       person, or imported into this state from any other state, territory, or for-
28       eign country by pipeline or connecting pipeline at a pipeline terminal or
29       pipeline tank farm for storage, shall be deemed to be "received" by such
30       person thereat when the same shall have been loaded at such refinery,
31       pipeline terminal, pipeline tank farm or other place, into tank cars, tank
32       trucks or other container, or placed in any tank from which any with-
33       drawals are made direct into tank cars, tank trucks or other types of trans-
34       portation equipment, containers or facilities;
35             (q) "retailer" means a person that engages in the business of selling
36       or distributing motor fuels to the end user;
37             (r) "school bus" means every bus, as defined by K.S.A. 8-1406, and
38       amendments thereto, which is: (1) Privately owned and contracted for,
39       leased or hired by a school district or nonpublic school for the transpor-
40       tation of pupils, students or school personnel to or from school or to or
41       from school-related functions or activities; or (2) owned and operated by
42       a school district or nonpublic school which is registered under the pro-
43       visions of K.S.A. 8-126 et seq., and amendments thereto, used for the

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  1       transportation of pupils, students or school personnel to or from school
  2       or to or from school-related functions or activities;
  3             (s) "special fuels" means all combustible liquids suitable for the gen-
  4       eration of power for the propulsion of motor vehicles including, but not
  5       limited to, diesel fuel, alcohol and such fuels not defined under the motor-
  6       vehicle fuels definition, hereinafter referred to as motor-vehicle fuel;
  7             (t) "terminal" means a fuel storage and distribution facility that is
  8       supplied by motor vehicle, pipeline or marine vessel, and from which
  9       motor fuels may be removed at a rack. "Terminal" does not include any
10       facility at which motor fuel blend stocks and additives are used in the
11       manufacture of products other than motor fuels and from which no motor
12       fuels are removed;
13             (u) "terminal operator" means the person who by ownership or con-
14       tractual agreement is charged with the responsibility for, or physical con-
15       trol over, and operation of a terminal;
16             (v) "transporter" means a person who has been issued a liquid-fuels
17       carrier's license pursuant to K.S.A. 55-506 et seq., and amendments
18       thereto.
19             Sec.  2. K.S.A. 79-3402 is hereby amended to read as follows: 79-
20       3402. The tax imposed by this act is levied for the purpose of producing
21       revenue to be used by the state of Kansas to defray in whole, or in part,
22       the cost of constructing, widening, purchasing of right-of-way, recon-
23       structing, maintaining, surfacing, resurfacing and repairing the public
24       highways, including the payment of bonds issued for highways included
25       in the state system of this state, and the cost and expenses of the director
26       of taxation and the director's agents and employees incurred in admin-
27       istration and enforcement of this act and the cost and expense of providing
28       grants for public use general aviation airports under K.S.A. 75-5061, and
29       amendments thereto, and for no other purpose whatever whatsoever.
30             Sec.  3. K.S.A. 79-3403 is hereby amended to read as follows: 79-
31       3403. It shall be unlawful for any distributor to use, sell or deliver any
32       motor-vehicle fuels or, special fuels or aviation fuels within this state
33       unless such distributor at the time of such use, sale, or delivery, is the
34       holder of a valid, unrevoked motor-vehicle-fuels distributor's license or,
35       special fuels distributor's license or aviation fuels distributor's license is-
36       sued to such distributor in accordance with the provisions of this act for
37       each particular place of business at which such distributor shall use, sell
38       or deliver motor-vehicle fuels or, special fuels or aviation fuels. Every
39       person desiring to operate as a distributor shall have a physical location
40       in this state for doing business and shall file an application for a motor-
41       vehicle-fuels or,special fuels or aviation fuels license or licenses with the
42       director. The application for the motor-vehicle-fuels or, special fuels or
43       aviation fuels distributor's license shall be made upon a form prescribed,

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  1       prepared and furnished by the director, and shall set forth the name
  2       under which the applicant transacts or intends to transact business, the
  3       exact location of each place of business within the state where the appli-
  4       cant transacts or intends to transact the business of using, selling or de-
  5       livering motor-vehicle fuels or, special fuels or aviation fuels, and such
  6       other information as the director may require. If the applicant is other
  7       than a natural person, the application shall set forth the name and address
  8       of each partner or person constituting the association, and if a corporation
  9       the names and addresses of the principal officers, and any other infor-
10       mation prescribed by the director for purposes of identification.
11             The application shall be signed and verified by oath or affirmation by
12       the owner, if a natural person. For any other business form the application
13       shall be signed and verified by oath or affirmation by a member or part-
14       ner, and in case of a corporation, by an executive officer or some person
15       specifically authorized by the corporation to sign the application, to which
16       shall be attached written evidence of such person's authority. The director
17       has the authority to deny a distributor's license to any applicant. Upon
18       approval of the application and the bond required, the director shall grant
19       and issue to such distributor a motor-vehicle-fuels distributor's or, special
20       fuels distributor's or aviation fuels distributor's license for each place of
21       business, within the state as set forth in such person's application. Motor-
22       vehicle-fuels distributor's licenses or, special fuels distributor's licenses
23       or aviation fuels distributor's licenses shall not be assignable and shall be
24       valid only for the distributor in whose name issued and for the transaction
25       of business at the place specifically designated therein, and shall at all
26       times be conspicuously displayed at the place for which issued. All li-
27       censes issued by the director shall be in force, so long as the holder has
28       in force a bond, as required by this act, deposited with the director, or
29       until such license is surrendered or revoked for cause by the director. No
30       motor-vehicle-fuels distributor's license or, special fuels distributor's li-
31       cense or aviation fuels distributor's license shall be granted and issued
32       until the person applying has filed with the director a bond, payable to
33       the state of Kansas, in such amount as shall be fixed by the director, but
34       in no event less than $1,000, with a corporate surety authorized to do
35       business in the state of Kansas and approved by the director, except that
36       should a distributor be unable to secure a corporate surety bond, the
37       director shall issue a license to such distributor upon the distributor fur-
38       nishing a personal bond meeting the approval of the director, such bond
39       to be conditioned that the distributor named will faithfully comply with
40       all the provisions of this act during the period of the license or licenses
41       issued to such distributor under such application.
42             It shall be unlawful for any manufacturer to use, sell or deliver any
43       motor-vehicle fuels or, special fuels or aviation fuels within this state

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  1       unless such manufacturer at the time of such use, sale, or delivery is the
  2       holder of a valid, unsuspended and unrevoked motor-vehicle fuel man-
  3       ufacturer's license or, special fuel manufacturer's license or aviation fuel
  4       manufacturer's license issued to such manufacturer in accordance with
  5       the provisions of this act for each particular place of business at which
  6       such manufacturer shall use, sell or deliver motor-vehicle fuels or, special
  7       fuels or aviation fuels. No special fuel manufacturer's license will be re-
  8       quired for any manufacturer who is blending products for winterization
  9       purposes if the manufacturer at the time of the blending is the holder of
10       a valid, unsuspended and unrevoked motor-vehicle fuels or, special fuels
11       distributor's license or aviation fuels distributor's license. Every person
12       desiring to operate as a manufacturer shall file an application for a motor-
13       vehicle fuel manufacturer's license or licenses or, special fuel manufac-
14       turer's license or licenses or aviation fuel manufacturer's license or li-
15       censes with the director. The application for the motor-vehicle fuel
16       manufacturer's license or, special fuel manufacturer's license or aviation
17       fuel manufacturer's license shall be made on a form prescribed, prepared,
18       and furnished by the director, and shall set forth the name under which
19       the applicant transacts or intends to transact business, the exact location
20       of each place of business within the state where the applicant transacts
21       or intends to transact the business of using, selling or delivering motor-
22       vehicle fuels or, special fuels or aviation fuels, and such other information
23       as the director may require. If the applicant is other than a natural person,
24       the application shall set forth the name and address of each partner or
25       person constituting the association, and if a corporation the names and
26       addresses of the principal officers, and any other information prescribed
27       by the director for purposes of identification.
28             The application shall be signed and verified by oath or affirmation by
29       the owner, if a natural person. For any other business form, the appli-
30       cation shall be signed and verified by oath or affirmation by a member
31       or a partner, and in case of a corporation, by an executive officer or some
32       person specifically authorized by the corporation to sign the application,
33       to which shall be attached written evidence of such person's authority.
34       The director has the authority to deny a manufacturer's license to any
35       applicant. Upon approval of the application and the bond required, the
36       director shall grant and issue to manufacturer a motor-vehicle fuels or,
37       special fuels or aviation fuels manufacturer's license for each place of
38       business, within the state as set forth in such person's application. Motor-
39       vehicle fuels manufacturer's licenses or, special fuels manufacturer's li-
40       censes or aviation fuels manufacturer's licenses shall not be assignable
41       and shall be valid only for the manufacturer in whose name and issued
42       for the transaction of business at the place specifically designated therein,
43       and shall at all times be conspicuously displayed at the place for which

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  1       issued. All licenses issued by the director shall be in force, so long as the
  2       holder has in force a bond, as required by this act, deposited with the
  3       director, or until such license is surrendered or revoked by the director.
  4             Any person not licensed as a motor-vehicle fuels or, special fuels or
  5       aviation fuels distributor under this act, desiring to import motor-vehicle
  6       fuels or, special fuels or aviation fuels from any other state or territory of
  7       the United States, or from a foreign country for such person's own use
  8       in the state of Kansas, or for sale or delivery therein, or desiring to export
  9       motor-vehicle fuels or, special fuels or aviation fuels from Kansas to any
10       other state or territory of the United States, or to a foreign country for
11       such person's own use or for sale or delivery therein, shall file application
12       for a motor-vehicle fuel or, special fuel or aviation fuel importer's or
13       exporter's license with the director. The application shall be made upon
14       a form prescribed, prepared, and furnished by the director, and shall set
15       forth the name under which the applicant transacts, or intends to transact,
16       business of using, selling or delivering motor-vehicle fuels or, special fuels
17       or aviation fuels and such other information as the director may require.
18       If the applicant is other than a natural person, the application shall set
19       forth the name and address of each partner or person constituting the
20       association, and if a corporation the names and address of the principal
21       officers, and any other information prescribed by the director for pur-
22       poses of identification.
23             The application shall be signed and verified by oath or affirmation by
24       the owner, if a natural person. For any other business form the application
25       shall be signed and verified by oath or affirmation by a member or part-
26       ner, and in case of a corporation, by an executive officer or some person
27       specifically authorized by the corporation to sign the application, to which
28       shall be attached written evidence of such person's authority. The director
29       has the authority to deny an importer's or exporter's license to any ap-
30       plicant. Upon approval of the application and the bond required, the
31       director shall grant and issue to an importer or exporter a motor-vehicle
32       fuels or, special fuels or aviation fuels importer's or exporter's license.
33       The written consent of the applicant, irrevocable, that actions may be
34       commenced against it in the proper court of any county in this state in
35       which a cause of action may arise or in which the plaintiff may reside, by
36       the service of process on the secretary of state, and stipulating and agree-
37       ing that such service shall be taken and held, in all courts, to be as valid
38       and binding as if due service had been made upon the applicant person-
39       ally, or upon the president and secretary, if a corporation. The secretary
40       of state shall notify the applicant of any action started against such appli-
41       cant by mailing a copy of the summons to the address set out in the
42       application by registered mail. Motor-vehicle fuels importer's or ex-
43       porter's licenses or, special fuels importer's or exporter's licenses or avi-

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  1       ation fuels importer's or exporter's licenses shall not be assignable and
  2       shall be valid only for the importer or exporter in whose name such license
  3       is issued. All licenses issued by the director shall be in force, so long as
  4       the holder has in force a bond, as required by this act, deposited with the
  5       director or until such license is surrendered by the director.
  6             No motor-vehicle fuel or, special fuel or aviation fuel manufacturer's
  7       license shall be granted and issued until the person applying has filed with
  8       the director a bond payable to the state of Kansas, in such amount as shall
  9       be fixed by the director, but in no event less than $5,000, with a corporate
10       surety authorized to do business in the state of Kansas and approved by
11       the director.
12             No motor-vehicle fuel or, special fuel or aviation fuel importer's or
13       exporter's license shall be granted and issued until the person applying
14       has filed with the director a bond, payable to the state of Kansas, in such
15       amount as shall be fixed by the director, but in no event less than $5,000,
16       with a corporate surety authorized to do business in the state of Kansas
17       and approved by the director.
18             It shall be unlawful for any retailer to sell or deliver any motor-vehicle
19       fuels or, special fuels or aviation fuels within this state unless such retailer
20       at the time of such sale or delivery, is the holder of a valid, unrevoked
21       retailer's license issued to such retailer in accordance with the provisions
22       of this act for each particular place of business at which such retailer shall
23       sell or deliver motor-vehicle fuels or, special fuels or aviation fuels. Every
24       person desiring to operate as a retailer shall have a physical location in
25       this state for doing business and shall file an application for a retailer's
26       license with the director. The application for the retailer's license shall
27       be made upon a form prescribed, prepared and furnished by the director,
28       and shall set forth the name under which the applicant transacts or in-
29       tends to transact business, the exact location of the place of business
30       within the state where the applicant transacts or intends to transact the
31       business of selling or delivering motor-vehicle fuels or, special fuels or
32       aviation fuels, and such other information as the director may require. If
33       the applicant is other than a natural person, the application shall set forth
34       the name and address of each partner or person constituting the associ-
35       ation, and if a corporation the names and addresses of the principal of-
36       ficers, and any other information prescribed by the director for purposes
37       of identification.
38             The application shall be signed and verified by oath or affirmation by
39       the owner, if a natural person. For any other business form the application
40       shall be signed and verified by oath or affirmation by a member or part-
41       ner, and in case of a corporation, by an executive officer or some person
42       specifically authorized by the corporation to sign the application, to which
43       shall be attached written evidence of such person's authority. The director

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  1       has the authority to deny a retailer's license to any applicant. Upon ap-
  2       proval of the application, the director shall grant and issue to such retailer
  3       a motor-vehicle fuels or, special fuels or aviation fuels retailers' license.
  4       Retailers licenses shall not be assignable and shall be valid only for the
  5       retailer in whose name and issued for the transaction of business at the
  6       place specifically designated therein, and shall at all times be conspicu-
  7       ously displayed at the place for which issued. All licenses issued by the
  8       director shall be in force until such license is surrendered or revoked by
  9       the director.
10             Each licensee licensed under this act shall furnish annually to the di-
11       rector any changes occurring in the members, corporate or company of-
12       ficers, directors and stock ownership of those owning more than 5% of
13       total outstanding shares of the licensee.
14             Sec.  4. K.S.A. 79-3405 is hereby amended to read as follows: 79-
15       3405. The director may at any time require any distributor, manufacturer,
16       importer or exporter to furnish such additional bond with authorized cor-
17       porate surety, as shall be necessary to secure at all times the payment by
18       such person to the state of all taxes, penalties and interest due under the
19       provisions of this act. If any distributor, manufacturer, importer or ex-
20       porter shall fail to file such additional bond within 10 days after receipt
21       of written notice mailed or otherwise delivered to such person by the
22       director, the director may suspend or revoke the license or licenses issued
23       to such person, and collect all taxes, penalties and interest accrued against
24       such distributor, manufacturer, importer or exporter. For the purpose of
25       determining whether an existing bond or bonds are sufficient, the director
26       may at any time, by mailed written notice, or otherwise delivered, require
27       any distributor, manufacturer, importer or exporter to furnish a financial
28       statement in such form as the director may prescribe. Upon failure of any
29       distributor, manufacturer, importer or exporter to furnish a sworn finan-
30       cial statement within 20 days after receipt of such written notice, the
31       director may suspend or revoke any or all licenses issued to such person,
32       and shall collect all taxes, penalties, and interest accrued against such
33       distributor, manufacturer, importer or exporter.
34             Any surety on a bond furnished by a distributor, manufacturer, im-
35       porter or exporter as provided shall be released and discharged from any
36       and all liability to the state accruing on such bond after the expiration of
37       60 days from the date upon which such surety shall have lodged with the
38       director a written request to be released and discharged, but this provi-
39       sion shall not operate to relieve, release, or discharge the surety from any
40       liability already accrued or which shall accrue before the expiration of the
41       sixty-day period. The director shall promptly, upon receiving any such
42       request, notify the distributor, manufacturer, importer or exporter who
43       furnished the bond and unless the distributor, manufacturer, importer or

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  1       exporter shall, on or before the expiration of such sixty-day period, file
  2       with the director a new bond fully complying with the provisions of this
  3       act, the director shall revoke and cancel such distributor's, manufac-
  4       turer's, importer's or exporter's license or licenses and notify the distrib-
  5       utor, manufacturer, importer or exporter by registered mail or otherwise.
  6             Licenses issued under the provisions of this act may be renewed an-
  7       nually before the first day of November upon an application to the di-
  8       rector, but no licenses shall be renewed until the applicant shall file with
  9       the director a bond in such amounts as shall be fixed by the director and
10       fully complying with the provisions of this act. Nothing contained in this
11       act shall require the filing of an application or bond, or the possession or
12       display of a motor-vehicle-fuels or, special fuelsor aviation fuels license,
13       for the use, sale and delivery of motor-vehicle fuels or, special fuels or
14       aviation fuels exclusively in interstate or foreign commerce not within the
15       taxing power of the state, or for use by, or sale or delivery to, the United
16       States government.
17             Sec.  5. K.S.A. 79-3406 is hereby amended to read as follows: 79-
18       3406. Any distributor, manufacturer or retailer who is the holder of any
19       valid and unrevoked license or licenses and who shall subsequent to the
20       issuance procure or propose to procure or operate additional places or
21       stations for using, selling or delivering motor-vehicle fuels or,special fuels
22       or aviation fuels, upon making application to the director, showing as to
23       each proposed new place or station the same information as required for
24       an original application, may secure from the director a license or licenses
25       for each of such new or proposed places or stations, which new license
26       or licenses shall be in the same form and contain the same statements as
27       the original license or licenses.
28             Sec.  6. K.S.A. 1998 Supp. 79-3407 is hereby amended to read as
29       follows: 79-3407. Whenever any distributor, manufacturer, importer or
30       exporter is 10 days delinquent in the payment of any such tax, penalty or
31       interest, or any distributor, manufacturer, importer, exporter or retailer
32       is 10 days delinquent in the making of any such report, or shall make any
33       false report or statement or application purporting to be under the pro-
34       visions of this act, or shall make any false statement in any application,
35       report or statement required by or purporting to be under the provisions
36       of this act, or purporting to be under the rules and regulations promul-
37       gated by the director under such provisions, or shall have willfully or
38       persistently violated any of the provisions of this act or of any rules and
39       regulations made thereunder, the director upon conducting a hearing as
40       provided in this section and upon finding to the director's satisfaction
41       upon such hearing, that such distributor, manufacturer, importer, ex-
42       porter or retailer has been delinquent, or has violated provisions of this
43       act, may revoke any or all licenses issued to such distributor, manufac-

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  1       turer, importer, exporter or retailer.
  2             Hearings under this section shall be conducted in accordance with the
  3       Kansas administrative procedure act. In the event that the director re-
  4       vokes any license or licenses the distributor, manufacturer, importer, ex-
  5       porter or retailer to whom such license or licenses were issued shall im-
  6       mediately, upon service of the director's order, surrender the same to the
  7       director and cease using, selling, delivering or manufacturing any motor-
  8       vehicle fuels or, special fuels or aviation fuels at or from any places of
  9       business or stations for which the license or licenses have been revoked.
10             Sec.  7. K.S.A. 1998 Supp. 79-3408 is hereby amended to read as
11       follows: 79-3408. (a) A tax per gallon or fraction thereof, at the rate com-
12       puted as prescribed in K.S.A. 79-34,141, and amendments thereto, is
13       hereby imposed on the use, sale or delivery of all motor-vehicle fuels or,
14       special fuels or aviation fuels which are used, sold or delivered in this
15       state for any purpose whatsoever.
16             (b) Every retail pump for motor-vehicle fuels shall be conspicuously
17       labeled to show the content and percentage of any ethyl alcohol or other
18       alcohol combined or alone in excess of 1% by volume.
19             (c) Unless otherwise specified in K.S.A. 79-3408c, and amendments
20       thereto, the incidence of this tax is imposed on the distributor of the first
21       receipt of the motor fuel and such taxes shall be paid but once. Such tax
22       shall be computed on all motor-vehicle fuels or, special fuels or aviation
23       fuels received by each distributor, manufacturer or importer in this state
24       and paid in the manner provided for herein, except that an allowance of
25       2.5% shall be made and deducted by the distributor to cover all ordinary
26       losses which may have resulted from physical loss while handling such
27       motor-vehicle fuels or, special fuels or aviation fuels. No such allowance
28       shall be made on any motor-vehicle fuel or, special fuel or aviation fuel
29       exported from the state or sold to the United States of America or any of
30       its agencies or instrumentalities as are now or hereinafter exempt by law
31       from liability to state taxation. No such allowance shall be made for any
32       motor-vehicle fuel or, special fuel or aviation fuel sold or disposed of to
33       a consumer in tank car, transport or pipeline lots.
34             (d) No tax is hereby imposed upon or with respect to the following
35       transactions:
36             (1) The sale or delivery of motor-vehicle fuel or, special fuel or avi-
37       ation fuel for export from the state of Kansas to any other state or territory
38       or to any foreign country.
39             (2) The sale or delivery of motor-vehicle fuel or, special fuel or avi-
40       ation fuel to the United States of America and such of its agencies as are
41       now or hereafter exempt by law from liability to state taxation.
42             (3) The sale or delivery of motor-vehicle fuel or, special fuel or avi-
43       ation fuel to a contractor for use in performing work for the United States

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  1       or those agencies of the United States above mentioned, provided such
  2       contractor has in effect with the United States or any such agency a cost-
  3       plus-a-fixed-fee contract covering the work.
  4             (4) The sale or delivery of aviation fuel motor-vehicle fuel or special
  5       fuel which is to a public utility for consumption or movement directly and
  6       immediately in interstate commerce.
  7             (5) The first sale or delivery of motor-vehicle fuel or, special fuel or
  8       aviation fuel from a refinery, pipeline terminal, pipeline tank farm or
  9       other place to a duly licensed distributor who in turn resells to another
10       duly licensed distributor.
11             (6) The sale or delivery of special fuel which is indelibly dyed in ac-
12       cordance with regulations prescribed pursuant to 26 U.S.C. 4082 and
13       such special fuel is only used for nonhighway purposes.
14             (e) Each distributor, manufacturer, importer, exporter or retailer
15       shall make full reports and furnish such further information as the direc-
16       tor may require with reference to all transactions upon which no tax is to
17       be paid.
18             Sec.  8. K.S.A. 1998 Supp. 79-3408c is hereby amended to read as
19       follows: 79-3408c. (a) A tax is hereby imposed on the use, sale or delivery
20       of all motor-vehicle fuel or, special fuel or aviation fuel owned at 12:01
21       a.m. July 1, 1989 1999, and on July 1 of each year thereafter, by any
22       licensed distributor or licensed retailer at a rate per gallon, or fraction
23       thereof, equal to the amount, if any, by which the tax per gallon, or frac-
24       tion thereof, in effect on such date as prescribed by K.S.A. 79-3408, and
25       amendments thereto, exceeds the rate of tax upon such motor-vehicle
26       fuel or, special fuel or aviation fuel which was in effect on the preceding
27       day. Such tax shall be paid by the licensed distributor or licensed retailer
28       owning such motor-vehicle fuel or, special fuel or aviation fuel at such
29       time and date. On or before the 25th day of the month in which a tax is
30       imposed under this section, every such distributor and retail dealer shall
31       make a report to the director on a form prescribed and furnished by the
32       director showing the total number of gallons, or fraction thereof, of such
33       motor-vehicle fuel or, specialfuel or aviation fuel owned at the time the
34       tax is imposed under this section and such report shall be accompanied
35       by a remittance of the tax due.
36             Any licensed distributor or licensed retailer who shall fail to make such
37       report or pay such tax, within the time prescribed, shall be subject to the
38       same penalties and interest charges prescribed by the motor-vehicle fuel
39       or, special fuel or aviation fuel tax law for failure of a licensed distributor
40       to make monthly reports and payments of motor-vehicle fuel or, special
41       fuelor aviation fuel tax. The provisions of the motor-fuel tax law relating
42       to remedies for the collection of delinquent motor-fuel taxes from dis-
43       tributors shall apply to the collection of taxes imposed by this section

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  1       which have become delinquent from licensed distributors and licensed
  2       retailers. All taxes, penalties and interest collected by the director under
  3       the tax imposed by this section shall be paid by the director into the state
  4       treasury and the state treasurer shall credit the same to the funds and in
  5       the amounts specified in K.S.A. 79-34,142, and amendments thereto.
  6             (b) Whenever the rate of tax upon motor-vehicle fuels or, special
  7       fuelsor aviation fuels fixed pursuant to K.S.A. 79-3408, and amendments
  8       thereto, which become effective on July 1, 1989 1999, or on July 1 in any
  9       year thereafter is less than the rate of tax upon such fuel in effect on the
10       preceding day, the licensed distributor or licensed retailer owning such
11       fuel at 12:01 a.m. on the date such reduction in taxes becomes effective
12       shall be entitled to a refund of taxes paid upon such fuel in an amount
13       equal to the amount by which taxes were reduced from the amount of
14       motor-vehicle fuels or, special fuels or aviation fuels taxes per gallon, or
15       fraction thereof, actually paid upon each gallon, or fraction thereof, of
16       motor-vehicle fuels or, special fuelsor aviation fuels multiplied by the
17       number of gallons of motor-vehicle fuels or, special fuels or aviation fuels
18       owned by the distributor or dealer on such date. On or before the 25th
19       day of the month in which such tax is reduced, every such distributor and
20       retailer shall make a report to the director on a form prescribed and
21       furnished by the director showing the total number of gallons of such
22       motor-vehicle fuel or, special fuel or aviation fuel owned by such distrib-
23       utor or retailer at 12:01 a.m. on the date upon which such tax was reduced.
24       It shall be the duty of the director of taxation to examine all such claims
25       and determine the amount to which each claimant is entitled. In the event
26       any distributor or retailer entitled to such refund shall owe the state any
27       motor-vehicle fuel or, special fuel or aviation fuel tax, penalties, or inter-
28       est, the refund authorized by this section shall upon being determined
29       by the director be credited upon the amount of such taxes, penalties and
30       interest. Whenever the director shall determine that any distributor or
31       retailer shall be entitled to a refund under any of the provisions of this
32       section, and such refund cannot be effected by giving credit therefor, as
33       hereinbefore provided, or against the future motor-vehicle fuel or, special
34       fuel or aviation fuel tax liability of such taxpayer the director shall certify
35       the amount of the refund to the state director of accounts and reports,
36       who shall draw a warrant for the amount so certified on the state treasurer
37       in favor of the distributor or retailer entitled to such refund, and mail, or
38       otherwise deliver, the same to the distributor entitled thereto. Such war-
39       rant shall be paid by the state treasurer to such distributor or retailer from
40       the motor-vehicle fuel or special fuel motor fuels tax refund fund.
41             (c) The provisions of this section shall not apply to any licensed re-
42       tailer who is a native American whose licensed place of business or busi-
43       nesses are located on such retailer's reservation, nor to any native Amer-

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  1       ican tribes having licensed places of business or businesses located on
  2       such tribe's reservation.
  3             Sec.  9. K.S.A. 1998 Supp. 79-3409 is hereby amended to read as
  4       follows: 79-3409. Every distributor paying such tax or being liable for the
  5       payment shall be entitled to charge and collect an amount, including the
  6       cost of doing business that could include such tax on motor-vehicle fuels
  7       or, special fuels or aviation fuels sold or delivered by such distributor, as
  8       a part of the selling price. When the price of motor-vehicle fuels or,
  9       special fuels or aviation fuels posted on a price sign does not include the
10       state and federal tax which such retail dealer's distributor paid or for
11       which the distributor was liable, the total of the taxes must be shown in
12       numbers the same size as the price of the motor fuel. Any deviation from
13       the maximum price charged for a given grade of motor-vehicle fuels or,
14       special fuels or aviation fuels must be stated in letters at least six inches
15       high and legible. Fractions of cents must be posted in numbers at least
16       1/5 the height of the whole number.
17             Sec.  10. K.S.A. 79-3410 is hereby amended to read as follows: 79-
18       3410. (a) Except as hereinafter provided, every distributor, manufacturer,
19       importer, exporter or retailer of motor-vehicle fuels or, special fuels or
20       aviation fuels, on or before the 25th day of each month, shall render to
21       the director at the director's office in Topeka, Kansas, upon a form pre-
22       scribed, prepared and furnished by the director a report certified to be
23       true and correct showing the number of gallons of motor-vehicle fuels
24       or, special fuels or aviation fuels received by such distributor, manufac-
25       turer, importer, exporter or retailer during the preceding calendar month,
26       and such further information as the director shall require. Every distrib-
27       utor and importer shall be exempt from reporting to the director exempt
28       sales to the end user of special fuel which is indelibly dyed in accordance
29       with regulations prescribed pursuant to 26 U.S.C. 4082. Every distributor,
30       manufacturer or importer within the time herein fixed for the rendering
31       of such reports, shall compute and shall pay to the director at the direc-
32       tor's office the amount of taxes due to the state on all motor-vehicle fuels
33       or, special fuels or aviation fuels received by such distributor, manufac-
34       turer or importer during the preceding calendar month.
35             (b) The director may waive the requirement for monthly reports from
36       licensed manufacturers, who are also licensed distributors, when all taxes
37       accrued under either or both licenses or which might accrue are paid
38       under the distributor license. All taxes imposed under the provisions of
39       this act not paid on or before the 25th day of the month succeeding the
40       calendar month in which the motor-vehicle fuels or, special fuels or avi-
41       ation fuels were received by the distributor, manufacturer or importer
42       shall be deemed delinquent and shall bear interest at the rate per month,
43       or fraction thereof, prescribed by subsection (a) of K.S.A. 79-2968, and

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  1       amendments thereto, from such due date until paid, and in addition
  2       thereto there is hereby imposed upon all amounts of such taxes remaining
  3       due and unpaid after such due date a penalty in the amount of 5%, and
  4       the penalty shall be by the director added to and collected as a part of
  5       the taxes. If the distributor, manufacturer or importer furnishes evidence
  6       to the director that the delinquency was due to causes beyond such per-
  7       son's reasonable control, and if in the opinion of the director the delin-
  8       quency was not the result of willful negligence of the distributor, manu-
  9       facturer or importer the penalty or interest or both may be waived or
10       reduced by the director.
11             If any person shall file a false or fraudulent return or fail to file a return
12       with intent to evade the tax imposed by this act, there shall be added to
13       the amount of deficiency determined by the director a penalty equal to
14       100% of the deficiency together with the interest at the rate per month
15       or fraction thereof, prescribed by subsection (a) of K.S.A. 79-2968, and
16       amendments thereto, on such deficiency from the date such tax was due
17       to the date of payment, in addition to all other penalties prescribed by
18       law. Every manufacturer, refiner or terminal operator of motor-vehicle
19       fuels or, special fuels or aviation fuels shall daily send reports to the
20       director of all sales of liquid fuels. The reports are to be made on forms
21       prescribed, prepared and furnished by the director or on forms furnished
22       by the manufacturer and approved by the director.
23             (c) Whenever the secretary or the secretary's designee determines
24       that the failure of the taxpayer to comply with the provisions of subsection
25       (b) was due to reasonable causes, the secretary or the secretary's designee
26       may waive or reduce any of the penalties and may reduce the interest
27       rate to the underpayment rate prescribed and determined for the appli-
28       cable period under section 6621 of the federal internal revenue code as
29       in effect on January 1, 1994, upon making a record of the reasons therefor.
30             Sec.  11. K.S.A. 79-3415 is hereby amended to read as follows: 79-
31       3415. Each distributor, manufacturer, importer, exporter, retailer or user
32       shall maintain and keep, for a period of three years, a full record or
33       records of all motor-vehicle fuels or, special fuels or aviation fuels re-
34       ceived, used or sold and delivered within this state by such distributor,
35       manufacturer, importer, exporter, retailer or user, together with invoices
36       and bills of lading thereof, and such other pertinent papers as may be
37       required by the director.
38             Sec.  12. K.S.A. 79-3416 is hereby amended to read as follows: 79-
39       3416. Every railroad, street railroad, interurban railroad or suburban rail-
40       road, every pipeline company, every common carrier, and every carrier
41       for hire, who shall transport any liquid fuels, motor-vehicle fuels or,special
42       fuels or aviation fuels, from any point outside of this state into this state,
43       or between any two points in this state, or from any point in this state to

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  1       any point outside this state, and every private carrier or other person who
  2       shall transport any liquid fuels, motor-vehicle fuels or, special fuels or
  3       aviation fuels from any other state into this state, or from this state into
  4       another state, or shall transport any liquid fuels, motor-vehicle fuels or,
  5       special fuels or aviation fuels exceeding 500 gallons in amount, for any
  6       distance exceeding 25 miles within this state, shall render a written report,
  7       under oath, to the director, on forms prescribed and furnished by the
  8       director, of all such transportation of liquid fuels, motor-vehicle fuels or,
  9       special fuels or aviation fuels so made to or from points within this state.
10       Every such report shall cover a period of one calendar month and shall
11       be rendered to the director on or before the 15th day of the month
12       succeeding the month covered by such report, and shall show the true
13       name and address of the consignor and the consignee, and if delivery has
14       been to some person other than the original consignee, the name and
15       address of the person to whom delivery was actually made, the date and
16       the point of delivery, and the name and the number of gallons of the
17       liquid fuels, the motor-vehicle fuels or, the special fuels or the aviation
18       fuels delivered. If such transportation was by tank car, such report shall
19       also show the number and initials of each tank car, if such transportation
20       was by motor truck such report shall show the motor and license number
21       of each truck, and if such delivery was made by any other means the
22       report shall show the manner in which such transportation and delivery
23       was made; such records and reports are required pursuant to the police
24       and taxing powers of this state for the purpose of promoting the public
25       health and safety and of aiding in the administration of the tax on motor-
26       vehicle fuels or, special fuels or aviation fuels.
27             Every carrier or other person transporting motor-vehicle fuel or, spe-
28       cial fuel or aviation fuel by tank car, tank truck or trailer from a refinery,
29       place of manufacture or production, or pipeline terminal, or importing
30       motor-vehicle fuel or, special fuel or aviation fuel into this state by tank
31       car, tank truck or trailer for use, sale, or delivery in the state of Kansas
32       shall carry a manifest on forms prescribed, prepared and furnished by the
33       director or on forms furnished by the manufacturer, refiner or terminal
34       operator and approved by the director showing the date of the use, sale,
35       or delivery, the purchaser and the purchaser's address, the point of de-
36       livery, the product type or types and the quantity sold corrected to 60
37       degrees Fahrenheit, the means of delivering, including the license num-
38       ber, if any, liquid-fuels carrier's license number, and other number and
39       description of such tank car, tank truck or trailer. Any manifest, bill of
40       lading, shipping paper or invoice for special fuel which is indelibly dyed
41       in accordance with regulations prescribed pursuant to 26 U.S.C. 4082
42       shall include the statement "DYED DIESEL FUEL, NONTAXABLE
43       USE ONLY, PENALTY FOR TAXABLE USE." Every person receiving

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  1       motor-vehicle fuel or, special fuel or aviation fuel or any part of the same
  2       shall receipt at the place provided on such manifest for the quantity re-
  3       ceived by such person. The director may prescribe the number of copies
  4       of such manifest and the manner and time of delivering the same to the
  5       director, ports of entry, or other disposition of copy by the carrier, con-
  6       signor, consignee, distributor, or other person in any manner connected
  7       with or dealing with such shipment.
  8             For the period July 1, 1995 through June 30, 1996, the point of delivery
  9       referred to in this section shall include at a minimum the city and state
10       of actual delivery. On and after July 1, 1996, The point of delivery referred
11       to in this section shall include at a minimum the address, city and state
12       of actual delivery. The facility number issued by the Kansas department
13       of health and environment, authorized under K.S.A. 65-34,100 et seq.,
14       and amendments thereto, may be substituted in lieu of the point of
15       delivery.
16             Sec.  13. K.S.A. 79-3417 is hereby amended to read as follows: 79-
17       3417. Every distributor shall be entitled to a refund from the state of the
18       amount of motor-vehicle fuels or, special fuels or aviation fuels tax paid
19       on any motor-vehicle fuels or, special fuels or aviation fuels of 100 gallons
20       or more in quantity, which are lost or destroyed at any one time while
21       such distributor is the owner thereof, through theft, leakage, fire, explo-
22       sion, lightning, flood, storm or other cause beyond the control of the
23       distributor. Such distributor shall notify the director in writing of such
24       loss or destruction, the specific cause thereof, and the amount of motor-
25       vehicle fuel or, special fuel or aviation fuel so lost or destroyed, within
26       60 days from the date of such loss or destruction. Within 30 days after
27       notifying the director of such loss or destruction such distributor shall file
28       with the director an affidavit on oath, stating the full circumstances and
29       amount of the loss or destruction and other information requested by the
30       director.
31             The director shall examine all such claims and determine the amount
32       to which the claimant is entitled. If any distributor entitled to a refund
33       owes the state any motor-vehicle fuel or, special fuel or aviation fuel tax,
34       penalties, or interest, the refund authorized by this section shall be cred-
35       ited upon such taxes, penalties and interest. When the director deter-
36       mines that any distributor is entitled to a refund under this section, and
37       such refund cannot be effected by giving credit therefor, the director
38       shall sign a voucher for the refund. Such amount shall be paid to the
39       distributor from the revenue administration fee fund.
40             Sec.  14. K.S.A. 79-3419 is hereby amended to read as follows: 79-
41       3419. The director of taxation shall enforce the provisions of this act. The
42       secretary of revenue shall adopt rules and regulations for the administra-
43       tion of this act. In the performance of the director's duties, the director

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  1       of taxation may call upon the law enforcement officers of this state to
  2       perform their several duties within their respective jurisdiction, and it
  3       shall be the duty of each such law enforcement officer to render aid in
  4       the enforcement of the provisions of this act.
  5             The county attorneys of the several counties of this state shall prosecute
  6       all violations of the provisions of this act, and all civil proceedings arising
  7       or pending in their respective counties for recovery of taxes, penalties or
  8       interest, arising under the provisions of this act. The director of taxation
  9       may request of the attorney general the aid and assistance of the Kansas
10       bureau of investigation for investigation of special cases. The director of
11       taxation, the director of vehicles and the attorney general shall commu-
12       nicate to each other all information received concerning violations of the
13       provisions of the motor-fuel tax law and also all information concerning
14       suspected violations which in the opinion of any one of them requires
15       investigation.
16             The director of taxation shall designate auditors, appointed in writing
17       by the director, to engage in the enforcement of the provisions hereof.
18       Such auditors shall check distributors, retailers, refund permit holders or
19       any person who uses, stores, transports, sells or delivers liquid fuels, mo-
20       tor-vehicle fuels or, special fuels or aviation fuels to insure strict compli-
21       ance with the provisions of the motor-fuel tax law. The director or such
22       auditor shall have authority to administer oaths, issue subpoenas, compel
23       the attendance of witnesses and the production of books, papers, ac-
24       counts, documents and testimony.
25             In case of disobedience on the part of any person to comply with any
26       subpoena issued hereunder, or the refusal of any witness to testify to any
27       matter regarding which such person may be lawfully interrogated, it shall
28       be the duty of the district court of the proper county, or the judge thereof
29       on application of such director or auditor to compel obedience by pro-
30       ceedings for contempt, as in the case of disobedience of the requirements
31       of a subpoena issued from such court or a refusal to testify therein.
32             Sec.  15. K.S.A. 79-3420 is hereby amended to read as follows: 79-
33       3420. The director, or any deputy or agent appointed in writing by the
34       director, is hereby authorized to examine the books, papers, records, stor-
35       age tanks, tank wagons, trucks and any other equipment of any distributor,
36       dealer, transporter, manufacturer, importer, exporter, retailer, user or any
37       other person, pertaining to the use, storage, transportation or sale and
38       delivery of liquid fuels, motor-vehicle fuels or, special fuels or aviation
39       fuels, to verify the accuracy of any report, statement or payment made
40       under the provisions of this act, or to ascertain whether or not all reports
41       and tax payments required by this act have been made. Any information
42       gained by the director, the director's deputies or agents, as the result of
43       the reports, investigations and verifications herein required to be made,

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  1       shall be confidential, and shall not be divulged by any person except as
  2       herein provided. Every distributor, dealer, transporter, manufacturer, im-
  3       porter, exporter, retailer or user and every person handling or possessing
  4       any liquid fuels, motor-vehicle fuels or, special fuels or aviation fuels shall
  5       give the director, or the director's deputy or agent appointed in writing,
  6       full and free access during reasonable business hours to all the papers,
  7       records and property mentioned, with full opportunity to examine the
  8       same. The director, or any deputy or agent appointed in writing by the
  9       director, shall examine returns and shall determine the correct amount
10       of the tax. If the tax found due shall be greater than the amount paid, or
11       if a claim for a refund is denied, notice shall be mailed to the taxpayer.
12       Within 60 days after the mailing of such notice, the taxpayer may request
13       an informal conference with the secretary of revenue or the secretary's
14       designee relating to the tax liability by filing a written request with the
15       secretary of revenue or the secretary's designee. Based on the evidence
16       presented at such informal conference, the secretary of revenue or the
17       secretary's designee shall make a final determination within the period
18       prescribed by K.S.A. 79-3226, and amendments thereto, and shall notify
19       the taxpayer of such decision and, if additional amounts are found to be
20       due, such decision shall be accompanied by a notice and demand for
21       payment. Notice under this section shall be sent by first-class mail. The
22       tax shall be paid within 20 days thereafter, together with interest at the
23       rate per month prescribed by subsection (a) of K.S.A. 79-2968, and
24       amendments thereto, on the additional tax from the date the tax was due
25       unless an appeal is taken in the manner provided by law, but no additional
26       tax shall be assessed for less than $5. Interest at such rate shall continue
27       to accrue on any additional tax liability during the course of any appeal.
28             Whenever the director of taxation has reason to believe that a person
29       liable for tax under any provisions of the motor-fuel tax law is about to
30       depart from the state or to remove such person's property therefrom, or
31       to conceal oneself or such person's property therein, or to do any other
32       act tending to prejudice, jeopardize or render wholly or partly ineffectual
33       the collection of such motor-fuel tax unless proceedings be brought with-
34       out delay, the director shall immediately make an assessment for all mo-
35       tor-fuel tax due from such taxpayer, noting such finding on the assess-
36       ment. The assessment shall be made on the basis of emergency
37       proceedings in accordance with the provisions of K.S.A. 77-536, and
38       amendments thereto. Thereupon, a warrant shall be issued for the col-
39       lection of the tax as provided in K.S.A. 79-3412, and amendments thereto,
40       except that there shall be no 10-day waiting period before assessment is
41       issued. The taxpayer, within 15 days from the date of filing of such war-
42       rant, may request an informal conference with the secretary of revenue
43       or the secretary's designee on the correctness of the assessment. The

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  1       director may publish the gallons received by each licensed motor-vehicle
  2       fuel or, special fuel or aviation fuel distributor and the deductions claimed
  3       by such distributor and such publication shall be an exception to the
  4       confidentiality provisions of K.S.A. 75-5133, and amendments thereto.
  5       The director may also make available or furnish information to the taxing
  6       officials of any other state or of the federal government, or the director
  7       of property valuation, in the manner as provided in K.S.A. 74-2424, and
  8       amendments thereto.
  9             Sec.  16. K.S.A. 79-3421 is hereby amended to read as follows: 79-
10       3421. The director is hereby authorized to pay out of any available funds
11       in the revenue administration fee fund, hereinafter provided, to any per-
12       son, other than a public officer or employee, who shall first furnish the
13       director information of violation by any person of any of the provisions
14       of this act, involving unlawful evasion of any motor-vehicle-fuels or, spe-
15       cial fuels or aviation fuels tax, such sum as the director may deem proper,
16       not exceeding 10% of the amount of tax so evaded or sought to be evaded;
17       but such amount shall only be paid upon the sworn voucher of the claim-
18       ant therefor and after collection of delinquent tax shall have been ef-
19       fected, or the person complained against shall have been convicted of
20       violation of some provision of this act.
21             Sec.  17. K.S.A. 79-3424 is hereby amended to read as follows: 79-
22       3424. The business of using, manufacturing or selling of motor-vehicle
23       fuels or, special fuels or aviation fuels shall not be subject to any excise,
24       license, privilege or occupation tax other than the one herein imposed,
25       whether such tax be imposed by the state of Kansas or by any municipal
26       corporation or other political subdivision of this state; and no municipal
27       corporation, or other political subdivision of this state, shall levy or collect
28       any tax upon, or measured by, the sale, receipt, distribution or use of
29       motor-vehicle fuel or, special fuel or aviation fuel, or any excise, license,
30       privilege, or occupational tax upon the business of manufacturing, using,
31       selling or delivering motor-vehicle fuels or, special fuels or aviation fuels.
32             Sec.  18. K.S.A. 79-3425 is hereby amended to read as follows: 79-
33       3425. (a) All of the amounts collected under the motor-fuel tax law and
34       amendments thereto, except amounts collected pursuant to K.S.A. 79-
35       3408c, and amendments thereto, shall be remitted by the director to the
36       state treasurer daily, and the state treasurer shall deposit all such amounts
37       in the state treasury. The state treasurer shall credit such amount thereof
38       as the director shall order in the motor-vehicle fuel motor fuels tax refund
39       fund to be used for the purpose of paying motor-vehicle fuel motor fuels
40       tax refunds as provided by law. The state treasurer shall credit the re-
41       mainder of such amounts as follows: To the state freeway highway fund
42       which fund is hereby created, amounts specified in K.S.A. 79-34,142, and
43       amendments thereto, to be expended in the manner provided in K.S.A.

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  1       68-2301, and amendments thereto, to a special city and county highway
  2       fund which is hereby created, amounts specified in K.S.A. 79-34,142, and
  3       amendments thereto, to be apportioned and distributed in the manner
  4       provided in K.S.A. 79-3425c, and amendments thereto, and to the Kansas
  5       qualified agricultural ethyl alcohol producer incentive fund, which is
  6       hereby created in the state treasury, in the amount and in the manner
  7       specified in K.S.A. 79-34,161, and amendments thereto, to be expended
  8       in the manner provided in K.S.A. 79-34,162, and amendments thereto,
  9       and to the public use general aviation airport development fund, amounts
10       specified in K.S.A. 79-34,142, and amendments thereto, to be expended
11       in accordance with the provisions of K.S.A. 75-5061, and amendments
12       thereto.
13             (b) On each day, after the state treasurer has received certification
14       from the secretary of transportation that provisions have been made for
15       the payment of the pro rata share of the amount required to be paid on
16       the next ensuing payment date of either the principal of or the interest
17       on the outstanding highway bonds issued pursuant to K.S.A. 68-2304 and
18       amendments thereto, the state treasurer shall transfer from the state free-
19       way fund to the state highway fund an amount specified in K.S.A. 79-
20       34,143, and amendments thereto.
21             Sec.  19. K.S.A. 79-3461 is hereby amended to read as follows: 79-
22       3461. A revolving fund designated as the motor-vehicle fuel motor fuels
23       tax refund fund not to exceed one million dollars ($1,000,000) $1,000,000
24       shall be set apart and maintained by the director from the motor-vehicle
25       fuel motor fuels tax collected under the provisions of article 34 of chapter
26       79 of the General Statutes of 1935 and the 1947 Supplement thereto and
27       acts amendatory thereof or supplemental Kansas Statutes Annotated, and
28       amendments thereto, and held by the state treasurer for the payment of
29       all refunds authorized by this act.
30             Sec.  20. K.S.A. 79-3464d is hereby amended to read as follows: 79-
31       3464d. (a) Any person who is responsible for the collection or payment
32       of motor-vehicle fuel or, special fuel or aviation fuel tax or control, re-
33       ceipt, custody or disposal of funds due and owing under the Kansas motor
34       fuel tax law who fails to collect such tax, or account for and pay over such
35       tax or attempts in any manner to evade or defeat such tax or the payment
36       thereof, shall be personally liable for the total amount of the tax evaded,
37       or not collected, or not accounted for and paid over, together with any
38       interest and penalty imposed thereon. The provisions of this section shall
39       apply regardless of the relationship with the licensee held by such person
40       and regardless of the business form of the licensee.
41             (b) Any person having control or supervision of or supervising em-
42       ployees having control or supervision of the collection, filing of returns,
43       accounting or payment of motor-vehicle fuel or, special fuel or aviation

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  1       fuel taxes of a licensee shall be personally liable for the tax, penalty and
  2       interest thereon, if the licensee fails to collect the tax, file returns, pay
  3       the tax or attempts in any manner to evade or defeat the tax.
  4             (c) The liability of each officer, director, shareholder or employee for
  5       a corporation's failure to collect the tax, file returns or pay any liability
  6       due survives the dissolution of the corporation.
  7             (d) The liability of each member for a limited liability company's fail-
  8       ure to collect the tax, file returns or pay any liability due survives the
  9       dissolution of the limited liability company.
10             (e) Evidence of personal or individual responsibility for the collection
11       or payment of taxes, filing return, control, receipt, custody or disposal of
12       funds may include any one or more of the following:
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 receive
18       loans, advances or lines of credit from thrift institutions on behalf of the
19       corporations;
20             (6) authorization to bind the licensee to contracts for sales or pur-
21       chases in day-to-day business operations; or
22             (7) authorization to directly supervise employees who are authorized
23       to perform any one or all of the above.
24             Sec.  21. K.S.A. 79-3464e is hereby amended to read as follows: 79-
25       3464e. (a) It shall be unlawful for any distributor, importer, exporter,
26       manufacturer, retailer, user, carrier, transporter or any other person to:
27             (1) Use, sell, manufacture or deliver any motor-vehicle fuels or, spe-
28       cial fuels or aviation fuels at any place without having a valid, unsus-
29       pended and unrevoked license as required by this act;
30             (2) fail, neglect or refuse to render to the director at the director's
31       office, within the time required by the provisions of this act, any report
32       or statement required by or purporting to be under the provisions of this
33       act, or purporting to be under the rules and regulations promulgated by
34       the director under such provisions;
35             (3) fail, neglect or refuse to pay the director, within the time required
36       by this act, any tax, taxes, interest or penalties for which such person is
37       liable under the provisions of this act;
38             (4) fail, neglect or refuse to keep and maintain for a period of three
39       years, or fail to make fully and freely accessible during business hours to
40       the director, the director's deputy or agent, all books, papers and records
41       required by this act to be kept and maintained and so made accessible;
42             (5) use any motor fuels purchased as exempt in a taxable manner;
43             (6) sell, receive or transport motor fuels without proper and correct

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  1       manifests;
  2             (7) sell or hold for sale dyed fuel that such person knows or has reason
  3       to know will not be used for a nontaxable purpose;
  4             (8) violate any other provision of this act not specified in this section;
  5             (9) aid and abet in violations contained in paragraphs (1) through (8);
  6             (10) falsify, forge or willfully conceal from the director or director's
  7       agent, any books, papers and records required by this act;
  8             (11) knowingly submit a false or forged application for licensure un-
  9       der this act;
10             (12) knowingly make any false or forged application for a refund per-
11       mit or claim for refund or to knowingly make any false statement in any
12       application for a refund permit, or in any claim for a refund;
13             (13) present, or cause to be presented, to the director for credit, or
14       for refund, any false, forged or altered invoice of refund;
15             (14) falsify, forge or alter any documents associated with the use, sale,
16       manufacture or delivery of any motor fuels;
17             (15) deliver or accept delivery, with the intent to evade the obligation
18       of collecting, remitting or accounting for motor fuel tax to this state, any
19       motor fuel, knowing that the manifest or bill of lading indicates that the
20       motor fuel was intended to be delivered to a tax exempt entity or intended
21       to be delivered to a location outside the state of Kansas;
22             (16) use dyed fuel other than for a nontaxable use;
23             (17) willfully alters or attempts to alter, the strength or composition
24       of any dye in any dyed fuel; or
25             (18) aid and abet in violations contained in paragraphs (10) through
26       (17).
27             (b) Violation of paragraphs (1) through (9) is a misdemeanor. Any
28       person convicted of such violation shall be punished by a fine of not less
29       than $1,000 nor more than $10,000, or imprisoned in the county jail for
30       not less than 30 days nor more than one year, or by both such fine and
31       imprisonment. Upon a second or subsequent conviction, such person
32       shall be punished by a fine of not less than $5,000 nor more than $50,000,
33       or by imprisonment in the county jail for not less than 60 days nor more
34       than two years, or by both such fine and imprisonment.
35             (c) Violation of paragraphs (10) through (18) is a severity level 10,
36       nonperson felony.
37             (d) For any violations of this section, the director may suspend or
38       revoke any license issued to any person found to be in violation and assess
39       an administrative penalty of $10 per gallon of motor fuels involved, or a
40       penalty of not less than $1,000 nor more than $10,000; and upon a second
41       or subsequent violation, a penalty of $25 per gallon of motor fuels in-
42       volved or a penalty of not less than $5,000 nor more than $50,000.
43             Sec.  22. K.S.A. 79-34,141 is hereby amended to read as follows: 79-

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  1       34,141. On and after July 1, 1992 1999, the tax rates imposed under this
  2       act shall be not less than:
  3             (a) On motor-vehicle fuels, $.18 per gallon, or fraction thereof;
  4             (b) on special fuels, $.20 per gallon, or fraction thereof; and
  5             (c) on LP-gas, $.17 per gallon, or fraction thereof.; and
  6             (d) on aviation fuels, $.07, or fraction thereof, until January 1, 2001,
  7       then $.08, or fraction thereof, thereafter.
  8             Sec.  23. K.S.A. 79-34,142 is hereby amended to read as follows: 79-
  9       34,142. (a) Except as provided in subsection (b), on and after August 1,
10       1989 1999, the state treasurer shall credit amounts received pursuant to
11       K.S.A. 79-3408, 79-3408c, 79-3491a, 79-3492 and 79-34,118 and amend-
12       ments thereto as follows: To the state freeway highway fund 59.5% and
13       to the special city and county highway fund 40.5%.
14             (b) On and after August 1, 1999, the state treasurer shall credit
15       amounts received pursuant to K.S.A. 79-3408 and 79-3408c, and amend-
16       ments thereto, from the taxation of aviation fuels to the public use general
17       aviation airport development fund. 
18       Sec.  24. K.S.A. 79-3401, 79-3402, 79-3403, 79-3405, 79-3406, 79-
19       3410, 79-3415, 79-3416, 79-3417, 79-3419, 79-3420, 79-3421, 79-3424,
20       79-3425, 79-3461, 79-3464d, 79-3464e, 79-34,141, 79-34,142 and 79-
21       34,143 and K.S.A. 1998 Supp. 79-3407, 79-3408, 79-3408c and 79-3409
22       are hereby repealed.
23        Sec.  25. This act shall take effect and be in force from and after its
24       publication in the statute book.