Session of 1999
         
HOUSE BILL No. 2417
         
By Representatives Larkin and Grant
          
2-10
          
  9             AN  ACT relating to transportation; providing for a comprehensive trans-
10             portation program; concerning the financing thereof; amending K.S.A.
11             12-1,119, 68-2033, 68-2073, 68-2096, 68-2315, 68-2316, 68-2320, 75-
12             5032, 75-5033, 75-5034, 75-5035, 75-5037, 75-5048, 75-5053, 75-5056,
13             75-5061, 79-3425, 79-3425c, 79-34,104, 79-34,126, 79-34,142, 79-
14             34,161 and 79-34,162 and K.S.A. 1998 Supp. 68-416, 68-2314, 68-2321
15             and 79-34,147 and repealing the existing sections; also repealing K.S.A.
16             66-231a, 66-231b, 68-402e, 68-417, 68-417a, 68-417b, 68-2318, 79-
17             3425d and 79-34,143.
18      
19       Be it enacted by the Legislature of the State of Kansas:
20             Section  1. K.S.A. 12-1,119 is hereby amended to read as follows: 12-
21       1,119. The governing body of any city may provide, by ordinance, for a
22       consolidated street and highway fund to which may be credited moneys
23       received by the city from state payments under the provisions of K.S.A.
24       68-416 and 79-3425c, and amendments thereto. The ordinance creating
25       such fund also may provide for annually budgeting the transfer of moneys
26       in the general or other operating funds of the city budgeted for street
27       and highway purposes to the consolidated street and highway fund. Mon-
28       eys in such fund shall be used solely for street and highway purposes.
29       Moneys received pursuant to subsection (b)(3) (a) of K.S.A. 68-416, and
30       amendments thereto, and credited to such fund shall be used solely for
31       the maintenance of streets and highways in the city designated by the
32       secretary of transportation as city connecting links.
33             Sec.  2. K.S.A. 1998 Supp. 68-416 is hereby amended to read as fol-
34       lows: 68-416. (a) All funds received by the various counties from the sale
35       of benefit-district bonds heretofore or hereafter issued, under the pro-
36       visions of K.S.A. 68-701 and 68-709, and amendments thereto, shall be
37       transferred by the county treasurers to the state treasurer to be placed in
38       the highway fund. Such amounts shall be expended in the counties from
39       which they are received and for the purposes for which such bonds were
40       issued. Nothing in this act shall be construed to relieve any county in
41       which a benefit district has been organized under the provisions of K.S.A.
42       68-701 et seq., and amendments thereto, from the duty and liability to
43       issue and sell bonds under the provisions thereof in the amount necessary

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  1       to pay such part of the cost of the construction of such benefit district
  2       roads in the benefit district required to be paid by the county, township
  3       and benefit district. Any unexpended balance remaining in the fund in
  4       which is placed that part of the fees for registration sent to the vehicle
  5       department or other official designated by law to receive the same, and
  6       appropriated for use in the administration of the motor-vehicle registra-
  7       tion act, unexpended at the end of any calendar year, shall be placed in
  8       the highway fund.
  9             (b) The state highway fund shall be apportioned as follows:
10             (1) The fund known as the "state highway benefit district fund" is
11       discontinued and hereafter the highway fund shall be used for the pay-
12       ment and reimbursement of benefit district costs and assessments for
13       such benefit districts that have been and may hereafter be constructed
14       as a part of the state highway system. On the effective date of this act the
15       state treasurer shall transfer all state highway benefit district funds to the
16       highway fund.
17             (2) (a) The secretary of transportation annually shall apportion and
18       distribute quarterly, on the first day of January, April, July and October,
19       to cities on the state highway system from the state highway fund moneys
20       at the rate of $2,000 $3,000 per year per lane per mile for the mainte-
21       nance of streets and highways in cities designated by the secretary as city
22       connecting links. Unless a consolidated street and highway fund is estab-
23       lished pursuant to K.S.A. 12-1,119, and amendments thereto, all moneys
24       distributed by the secretary shall be credited to the street and alley funds
25       of such cities. All moneys so distributed shall be used solely for the main-
26       tenance of city connecting links. Maintenance of such city connecting
27       links shall be as prescribed in K.S.A. 68-416a, and amendments thereto.
28       As used in this subsection, "lane" means the portion of the roadway for
29       use of moving traffic of a standard width prescribed by the secretary. In
30       lieu of such apportionment, the secretary, by and with the consent of the
31       governing body of any city within the state of Kansas, may maintain such
32       streets within the city and pay for such maintenance from the highway
33       fund.
34             (3) (b) All of the remainder of such highway fund shall be used by
35       the secretary of transportation for: (A)
36             (1) The construction, improvement, reconstruction and maintenance
37       of the state highway system;
38             (B) (2) improvements in transportation programs to aid the elderly
39       and disabled; (C)
40             (3) the preservation and revitalization of rail service in accordance
41       with K.S.A. 75-5040 through 75-5050, and amendments thereto;
42             (4) the planning, constructing, reconstructing or rehabilitating the
43       facilities of public use general aviation airports, in accordance with K.S.A.

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  1       75-5061, and amendments thereto;
  2             (5) the support and maintenance of the department of transportation;
  3       (D)
  4             (6) the expenses of administering the motor vehicle registration and
  5       drivers' license laws; and (E)
  6             (7) the payment of losses to department of transportation employees
  7       authorized by K.S.A. 1998 Supp. 75-5062, and amendments thereto. All
  8       apportionments and distribution provided for by this section shall be
  9       made quarterly on the first day of January, April, July and October of
10       each year.
11             Sec.  3. K.S.A. 68-2033 is hereby amended to read as follows: 68-
12       2033. The secretary of transportation and the authority are hereby au-
13       thorized and empowered to make and enter into any and all contracts
14       and agreements, including (but without limitation) any contract or agree-
15       ment for the removal or construction of any bridge or other highway
16       facility which they may deem necessary, desirable or incidental to the
17       financing, construction, maintenance, repair or operation of any turnpike
18       project financed under the provisions of this act.
19             With respect to any turnpike project financed under the provisions of
20       this act, the secretary is authorized and empowered to contract or agree
21       with the authority to pay to the authority from the state highway fund,
22       upon order or voucher of the secretary of transportation in the manner
23       provided by law to the director of accounts and reports, in each year, such
24       amount or amounts as shall be required in such year to make up any
25       deficiency in the revenues received from the operation and ownership of
26       such turnpike project in such year, over and above the cost of mainte-
27       nance, repair and operation of such turnpike project incurred in such
28       year; (i) for paying the interest on all turnpike revenue bonds or turnpike
29       revenue refunding bonds issued by the authority in connection with such
30       turnpike projects; (ii) for retiring such bonds by their maturity or matur-
31       ities; and (iii) for paying the premium, if any, on a specified aggregate
32       principal amount of such bonds which would be payable in such year if
33       such principal amount of bonds were to be redeemed prior to their ma-
34       turity or maturities. The amount which is required in each such year to
35       provide for paying the interest on such bonds and for retiring such bonds
36       by their maturity or maturities shall be determined as provided in such
37       contract or agreement. Any such payments required to be made pursuant
38       to such contract or agreement may be pledged or assigned by the au-
39       thority in the same manner as tolls and other revenues of such turnpike
40       project. Any such contract or agreement shall provide for reimbursement
41       by the authority, from tolls or other revenues of such turnpike projects,
42       to the secretary of transportation for the credit of the state highway fund,
43       at any time or times and under such terms and conditions as may be set

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  1       forth therein, of any amounts previously paid to the authority by the
  2       secretary pursuant to the provisions of this paragraph:Provided, however,,
  3       except that if the revenues received from the operation and ownership of
  4       such turnpike project in any year, over and above the cost of maintenance,
  5       repair and operation of such turnpike project incurred in such year, shall
  6       exceed one hundred fifty percent (150%) 150% of clauses (i), (ii) and (iii)
  7       above for such year, such excess must be reimbursed to the secretary, for
  8       the credit of the state highway fund, until all amounts previously paid to
  9       the authority by the secretary of transportation have been reimbursed to
10       said the secretary.
11             Any payments provided to be made in any year pursuant to the pro-
12       visions of this section to the authority from the state highway fund shall
13       be a lien and claim on the portion of said the highway fund which is made
14       available to the secretary of transportation by the provisions of subsection
15       (4) of K.S.A. 68-416, and amendments thereto, to be used by said secretary
16       in the construction, improvement, reconstruction and maintenance of the
17       state highway system and the support and maintenance of the department
18       of transportation and the expenses of administering the motor vehicle
19       registration and drivers license laws; but any such payments provided to
20       be made shall not be a lien or claim on any of the sums now provided by
21       subsections (1), (2) and (3) of K.S.A. 68-416: Provided, however,, and
22       amendments thereto, except that the secretary of transportation and the
23       authority may determine any priority as to lien and claim on said the fund
24       as between any such payments to the authority from said the fund on
25       account of any turnpike projects financed under the provisions of this act.
26       The laws of Kansas shall not be repealed or amended so as to cause the
27       moneys available in the state highway fund for making any payments to
28       the authority provided to be made pursuant to the provisions of this sec-
29       tion to be insufficient to make any such payments.
30             The provisions of any contract or agreement entered into pursuant to
31       the provisions of this section may be enforced by the authority or by the
32       trustee under any trust agreement authorized by the provisions of K.S.A.
33       68-2038, and amendments thereto.
34             Sec.  4. K.S.A. 68-2073 is hereby amended to read as follows: 68-
35       2073. The secretary of transportation and the authority are hereby au-
36       thorized and empowered to make and enter into any and all contracts
37       and agreements, including (but without limitation) any contract or agree-
38       ment for the removal or construction of any bridge or other highway
39       facility which they may deem necessary, desirable or incidental to the
40       financing, construction, maintenance, repair or operation of any highway
41       project financed under the provisions of this act.
42             With respect to any highway project financed under the provisions of
43       this act, the secretary of transportation is authorized and empowered to

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  1       contract or agree with the authority to pay to the authority from the state
  2       highway fund, upon order or voucher of the secretary in the manner
  3       provided by law to the director of accounts and reports, in each year, such
  4       amount or amounts as shall be required in such year to make up any
  5       deficiency in the revenues received from the operation and ownership of
  6       any highway project in such year, over and above the cost of maintenance,
  7       repair and operation of such highway project and the creation of reserves
  8       for such purposes in such year, (i) for paying the interest on all highway
  9       revenue bonds or highway revenue refunding bonds issued by the au-
10       thority in connection with any such highway project, (ii) for retiring such
11       bonds by their maturity or maturities, and (iii) for paying the premium,
12       if any, on a specified aggregate principal amount of such bonds which
13       would be payable in such year if such principal amount of bonds were to
14       be redeemed prior to their maturity or maturities. The amount which is
15       required in each such year to provide for paying the interest on such
16       bonds and for retiring such bonds on or prior to their maturity or matur-
17       ities shall be determined as provided in such contract or agreement. Any
18       such payments required to be made pursuant to such contract or agree-
19       ment may be pledged or assigned by the authority in the same manner
20       as tolls and other revenues of such highway project. Any such contract or
21       agreement shall provide for reimbursement by the authority, from tolls
22       or other revenues of such highway project to the secretary of transpor-
23       tation for the credit of the state highway fund, at any time or times and
24       under such terms and conditions as may be set forth therein, if any
25       amounts previously paid to the authority by the secretary pursuant to the
26       provisions of this paragraph: Provided, however,, except that if the reve-
27       nues received from the operation and ownership of such highway project
28       in any year, over and above the cost of maintenance, repair and operation
29       of such highway project incurred in such year, shall exceed one hundred
30       fifty percent (150%) 150% of clauses (i), (ii) and (iii) above for such year,
31       such excess must be reimbursed to the secretary of transportation, for
32       the credit of the state highway fund, until all amounts previously paid to
33       the authority by the secretary of transportation have been reimbursed to
34       the secretary.
35             Any payments provided to be made in any year pursuant to the pro-
36       visions of this section to the authority from the state highway fund shall
37       be a lien and claim on the portion of said the highway fund which is made
38       available to the secretary of transportation by the provisions of subsection
39       (b)(4) of K.S.A. 68-416, and amendments thereto, to be used by said
40       secretary in the construction, improvement, reconstruction and mainte-
41       nance of the state highway system and the support and maintenance of
42       the department of transportation and the expenses of administering the
43       motor vehicle registration and drivers license laws; but any such payments

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  1       provided to be made shall not be a lien or claim on any of the sums now
  2       provided by subsections (b)(1), (2) and (3) of K.S.A. 68-416, and amend-
  3       ments thereto, and such payments shall be subject to any prior lien
  4       thereon, if any, created by similar contract heretofore made and entered
  5       into by and between the secretary of transportation and the Kansas turn-
  6       pike authority: Provided, however,, except that the secretary and the au-
  7       thority may determine any priority as to lien and claim on said the fund
  8       as between any such payments to the authority from said the fund on
  9       account of any highway projects financed under the provisions of this act.
10       The laws of Kansas shall not be repealed or amended so as to cause the
11       moneys available in the state highway fund for making any payments to
12       the authority provided to be made pursuant to the provisions of this sec-
13       tion to be insufficient to make any such payments.
14             The provisions of any contract or agreement entered into pursuant to
15       the provisions of this section may be enforced by the authority or by the
16       trustee under any trust agreement authorized by the provisions of K.S.A.
17       68-2078, and amendments thereto.
18             Sec.  5. K.S.A. 68-2096 is hereby amended to read as follows: 68-
19       2096. The secretary of transportation and the authority are hereby au-
20       thorized and empowered to make and enter into any and all contracts
21       and agreements, including (but without limitation) any contract or agree-
22       ment for the removal or construction of any bridge or other highway
23       facility which they may deem necessary, desirable or incidental to the
24       financing, construction, maintenance, repair or operation of any highway
25       project financed under the provisions of this act.
26             With respect to any highway project financed under the provisions of
27       this act, the secretary of transportation is authorized, empowered and
28       directed to contract or agree with the authority to pay to the authority
29       from the state freeway fund or state highway fund, upon order or voucher
30       of the secretary in the manner provided by law to the director of accounts
31       and reports, in each year, such amount or amounts as shall be required
32       in such year to make up any deficiency in the revenues received from the
33       operation and ownership of any highway project in such year, over and
34       above the cost of maintenance, repair and operation of such highway
35       project and the creation of reserves for such purposes in such year, (i)
36       for paying the interest on all highway revenue bonds or highway revenue
37       refunding bonds issued by the authority in connection with any such high-
38       way project, (ii) for retiring such bonds by their maturity or maturities,
39       and (iii) for paying the premium, if any, on a specified aggregate principal
40       amount of bonds which would be payable in such year if such principal
41       amount of bonds were to be redeemed prior to their maturity or matur-
42       ities. Any contract or agreement entered into pursuant to this section shall
43       provide that all payments to the authority pursuant to this section shall

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  1       be made from the state freeway fund, unless the moneys available in said
  2       fund for making such payments are insufficient; and in such event, such
  3       contract or agreement shall provide that any additional moneys needed
  4       to make any such payment or payments shall be paid from the state high-
  5       way fund. The amount which is required in each such year to provide for
  6       paying the interest on such bonds and for retiring such bonds on or prior
  7       to their maturity or maturities shall be determined as provided in such
  8       contract or agreement. Any such payments required to be made pursuant
  9       to such contract or agreement may be pledged or assigned by the au-
10       thority in the same manner as tolls and other revenues of such highway
11       project. Any such contract or agreement shall provide for reimbursement
12       by the authority, from tolls or other revenues of such highway project to
13       the secretary of transportation for the credit of the state highway fund or
14       state freeway fund, at any time or times and under such terms and con-
15       ditions as may be set forth therein, of any amounts previously paid to the
16       authority by the secretary of transportation pursuant to the provisions of
17       this paragraph: Provided, however,, except that if the revenues received
18       from the operation and ownership of such highway project in any year,
19       over and above the cost of maintenance, repair and operation of such
20       highway project incurred in such year, shall exceed one hundred fifty
21       percent (150%) 150% of clauses (i), (ii) and (iii) above for such year, such
22       excess must be reimbursed to the secretary, for the credit of the state
23       highway fund or state freeway fund, until all amounts previously paid to
24       the authority by the secretary have been reimbursed to the secretary. Any
25       moneys paid by the authority to the secretary pursuant to this section as
26       reimbursement for moneys previously paid from the state highway fund
27       or state freeway fund shall be deposited by the secretary in the state
28       treasury, and the state treasurer shall credit such moneys to the state
29       highway fund from which payments to the authority were made. Where
30       payments to the authority have been made from both the state highway
31       fund and state freeway fund, moneys paid as reimbursement therefor
32       shall be credited by the state treasurer to each such fund in the proportion
33       provided in the contract or agreement authorizing payments to the
34       authority.
35             Any payments authorized by subsection (b) of K.S.A. 68-2301, and
36       provided to be made to the authority from the state freeway fund in any
37       year pursuant to the provisions of this section shall be a lien and claim
38       on that portion of said freeway fund which is not otherwise obligated for
39       the payment of the principal of and interest on the highway bonds issued
40       pursuant to K.S.A. 68-2304, and the pledge by the authority of any mon-
41       eys paid to the authority from the freeway fund pursuant to this section
42       shall be subordinate to the lien and claim on such fund under the pro-
43       visions of K.S.A. 68-2304: Provided, That the secretary of transportation

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  1       and the authority may determine any priority as to lien and claim on said
  2       fund as between any such payments to the authority from said fund on
  3       account of any highway projects financed under the provisions of this act.
  4       The laws of Kansas shall not be repealed or amended so as to cause the
  5       moneys available in the state freeway fund for making any payments to
  6       the authority provided to be made pursuant to the provisions of this sec-
  7       tion to be insufficient to make any such payments.
  8             Any payments provided to be made in any year pursuant to the pro-
  9       visions of this section to the authority from the state highway fund shall
10       be a lien and claim on the portion of said the highway fund which is made
11       available to the secretary of transportation by the provisions of subsection
12       (b)(4) of K.S.A. 68-416 to be used by said secretary in the construction,
13       improvement, reconstruction and maintenance of the state highway sys-
14       tem and the support and maintenance of the department of transportation
15       and the expenses of administering the motor vehicle registration and driv-
16       ers license laws;, and amendments thereto, but any such payments pro-
17       vided to be made shall not be a lien or claim on any of the sums now
18       provided by subsections (b)(1), (2) and (3) of K.S.A. 68-416, and amend-
19       ments thereto, and such payments shall be subject to any prior lien
20       thereon, if any, created by similar contract heretofore made and entered
21       into by and between the secretary and the Kansas turnpike authority:
22       Provided, however,, except that the secretary and the authority may de-
23       termine any priority as to lien and claim on said the fund as between any
24       such payments to the authority from said the fund on account of any
25       highway projects financed under the provisions of this act. The laws of
26       Kansas shall not be repealed or amended so as to cause the moneys avail-
27       able in the state highway fund for making any payments to the authority
28       provided to be made pursuant to the provisions of this section to be
29       insufficient to make any such payments.
30             The provisions of any contract or agreement entered into pursuant to
31       the provisions of this section may be enforced by the authority or by the
32       trustee under any trust agreement authorized by the provisions of K.S.A.
33       68-20,101 and amendments thereto.
34             Sec.  6. K.S.A. 1998 Supp. 68-2314 is hereby amended to read as
35       follows: 68-2314. (a) In order to provide for the construction and recon-
36       struction of a modern and efficient system of highways within the state,
37       the secretary of transportation is hereby authorized and directed to ini-
38       tiate a highway program which shall include highway and bridge projects
39       selected by the secretary of transportation using the transportation de-
40       partment's project selection method.
41             It is the intent of the legislature that the highway projects selected shall
42       represent, as nearly as possible, the top 16% of the existing state highway
43       system needs as determined by the transportation department's prioriti-

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  1       zation method. It is the intent of the legislature that priority bridge pro-
  2       jects shall be increased by, as nearly as possible, 20%. It is the intent of
  3       the legislature that, as nearly as possible, the amount of $600,000,000
  4       shall be expended or committed to be expended for system enhancements
  5       for the period beginning July 1, 1989, through June 30, 1997.
  6             (b) In addition, the secretary of transportation shall include in the
  7       highway program the following work categories and activities:
  8             (1) An increase in substantial maintenance to a level sufficient to ar-
  9       rest and reverse the decline in the surface condition of the highways and
10       bridges; In order to plan, develop and operate or coordinate the devel-
11       opment and operation of the various modes and systems of transportation
12       within the state, the secretary of transportation is hereby authorized and
13       directed to initiate a comprehensive transportation program.
14             (b) The comprehensive transportation program shall provide for the
15       construction, improvement, reconstruction and maintenance of the state
16       highway system. These expenditures may include but not be limited to the
17       following:
18             (1) Maintenance programs to efficiently maintain a safe state highway
19       system in its original or improved condition. It is the intent of the legis-
20       lature that the surface condition of the state highway system and its
21       bridges, as measured by the Kansas department of transportation pave-
22       ment and bridge management systems, shall be maintained or improved;
23             (2) construction and reconstruction programs to develop, to the extent
24       practical, the state highway system including major modification projects
25       to improve service, comfort, capacity, condition, economy or safety of the
26       existing system and priority bridge projects to replace or rehabilitate
27       bridges that have a deteriorated condition or that have deficiencies in
28       load carrying capacity, width or traffic service;
29             (3) system enhancement projects which include additions to the sys-
30       tem of highways or which substantially improve safety, relieve congestion,
31       improve access or enhance economic development. The Kansas depart-
32       ment of transportation shall utilize the selection methodology developed
33       by the department, to select system enhancement projects;
34             (2) (4) maximize the state's use of federally available funds;
35             (3) (5) increase the state's participation in partnership with the cities
36       and counties including:
37             (A) Geometric improvements on city connecting links;
38             (B) city connecting link payments;
39             (C) economic development projects;
40             (4) improvements in transportation programs to aid the elderly and
41       disabled; and
42             (5) system enhancements, which include additions and special pro-
43       jects that substantially improve safety, relieve congestion, improve ac-

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  1       cesses or enhance economic development. The department of transpor-
  2       tation shall develop and utilize criteria for the selection of system
  3       enhancement projects.
  4             (c) The comprehensive transportation program shall provide for a
  5       railroad program to provide assistance in accordance with K.S.A. 75-5040
  6       through 75-5050, and amendments thereto, for the preservation and re-
  7       vitalization of rail service in the state.
  8             (d) The comprehensive transportation program shall provide for an
  9       aviation program to provide assistance for the planning, constructing,
10       reconstructing or rehabilitating the facilities of public use general aviation
11       airports, in accordance with K.S.A. 75-5061, and amendments thereto.
12             (e) The comprehensive transportation program shall provide for pub-
13       lic transit programs to aid elderly and disabled persons, in accordance
14       with K.S.A. 75-5032 through 75-5038, and amendments thereto, and
15       K.S.A. 75-5051 through 75-5058, and amendments thereto.
16             (c) (f) All contracts for the construction, reconstruction and mainte-
17       nance of the highway system under the provisions of this act shall be
18       subject to the provisions of K.S.A. 68-407 through 68-411, and amend-
19       ments thereto.
20             Sec.  7. K.S.A. 68-2315 is hereby amended to read as follows: 68-
21       2315. Annually, prior to the 10th day of each regular session of the leg-
22       islature, the secretary of transportation shall submit a written report to
23       the governor and each member of the legislature providing:
24             (a) A comprehensive financial report of all funds for the preceding
25       year which shall include a report by independent public accountants at-
26       testing that the financial statements present fairly the financial position
27       of the Kansas department of transportation in conformity with generally
28       accepted accounting principles;
29             (b) a detailed explanation of the methods or criteria employed to
30       select construction projects, including a definition of the program ele-
31       ments in subsections (a) and (b) of K.S.A. 68-2314 in the selection of
32       substantial maintenance and construction projects and in the awarding
33       of assistance to cities, counties or other transportation providers;
34             (c) the proposed allocation and expenditure of moneys and proposed
35       work plan for the current fiscal year and at least the next five years;
36             (d) information concerning construction work completed in the pre-
37       ceding fiscal year and construction work in progress;
38             (e) specific recommendations for any statutory changes necessary for
39       the successful completion of the comprehensive transportation program
40       specified in K.S.A. 68-2314, and amendments thereto, or efficient and
41       effective operation of the Kansas department of transportation; and
42             (f) an explanation of any material changes from the previous annual
43       report.

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  1             Sec.  8. K.S.A. 68-2316 is hereby amended to read as follows: 68-
  2       2316. For the period beginning July 1, 1989 1999, through June 30, 1997
  3       2007, the secretary of transportation shall expend or commit to expend,
  4       from the revenue provided under the provisions of this act, at least
  5       $2,500,000 $3,000,000 for highway, bridge and substantial maintenance
  6       projects in each county of the state.
  7             Sec.  9. K.S.A. 68-2320 is hereby amended to read as follows: 68-
  8       2320. On and after July 1, 1991 1999, the secretary of transportation is
  9       hereby authorized and empowered to issue bonds of the state of Kansas,
10       payable solely from revenues accruing to the state highway fund and
11       transferred to the highway bond debt service fund and pledged to their
12       payment, for the purpose of providing funds to pay costs relating to con-
13       struction, reconstruction, maintenance or improvement of highways in
14       this state and to pay all expenses incidental thereto and to the bonds. The
15       secretary is hereby authorized to issue bonds the total principal amount
16       of which shall not exceed $890,000,000 $800,000,000, except that if the
17       Kansas unemployment rate is at or exceeds 5.5% for six consecutive
18       months, the secretary is authorized to issue additional bonds the total
19       principal amount of which shall not exceed $200,000,000. In accordance
20       with procurement statutes, the secretary may contract with financial ad-
21       visors, attorneys and such other professional services as the secretary
22       deems necessary to carry out the provisions of this act, and to do all things
23       necessary or convenient to carry out the powers expressly granted in this
24       act.
25             Sec.  10. K.S.A. 1998 Supp. 68-2321 is hereby amended to read as
26       follows: 68-2321. (a) Bonds issued shall be authorized by resolution of
27       the secretary. The secretary shall determine the form and manner of the
28       execution of the bonds and the bonds may be made exchangeable for
29       bonds of another denomination or in another form. The bonds shall be
30       dated and shall mature not more than 20 15 years from their date. The
31       bonds may be in such form and denominations, may bear interest payable
32       at such times and at such rate or rates, may be payable at such places
33       within or without the state, may be subject to such terms of redemption
34       in advance of maturity at such prices, and may contain such terms and
35       conditions, all as the secretary shall determine. The bonds shall have all
36       the qualities of and shall be deemed to be negotiable instruments under
37       the laws of the state of Kansas. The authorizing resolution may contain
38       any other terms, covenants and conditions that the secretary deems rea-
39       sonable and desirable.
40             (b) The proceeds from the sale of the bonds authorized to be issued
41       under this section are deemed to be trust funds which shall be deposited
42       in the custody of the state treasurer in the highway bond proceeds fund
43       which is hereby created. The secretary shall have responsibility for the

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  1       management and control of the highway bond proceeds fund and shall
  2       provide, by resolution, for both amounts and the duration of investments
  3       of moneys in such fund. Such resolution may recommend investment and
  4       reporting policies, including acceptable levels of return, risk and security.
  5       After consultation with the secretary and subject to the terms, covenants
  6       and conditions provided in the resolutions providing for the issuance of
  7       such bonds, the director of investments shall have the authority to invest
  8       and reinvest moneys in such fund and to acquire, retain, manage, includ-
  9       ing the exercise of any voting rights, and dispose of investments of such
10       fund. In investing or reinvesting moneys in such fund, there shall be
11       exercised the judgment and care under the circumstances then prevailing
12       which persons of prudence, discretion and intelligence exercise in the
13       management of their own affairs, not in regard to speculation but in re-
14       gard to the permanent disposition of their funds, considering the probable
15       income as well as the probable safety of their capital, except that moneys
16       of the fund may not be invested in common stocks. Notwithstanding an-
17       ything to the contrary, all interest or other income of the investments,
18       after payment of any management fees, of the highway bond proceeds
19       fund shall be credited to the highway bond debt service fund, until pay-
20       ments on bonds authorized by this act and interest thereon has been fully
21       funded. Thereafter, earnings and other income shall be credited to the
22       state highway fund.
23             (c) The authorizing resolution may provide for the execution of a trust
24       indenture. The trust indenture may contain any terms, covenants and
25       conditions that are deemed desirable by the secretary, including, without
26       limitation, those pertaining to the maintenance of various funds and re-
27       serves, the nature and extent of any security for payment of the bonds,
28       the custody and application of the proceeds of the bonds, the collection
29       and disposition of bond proceeds and earnings thereon, the investing for
30       authorized purposes, and the rights, duties and obligations of the secre-
31       tary and the holders and registered owners of the bonds.
32             (d) Any authorizing resolution and trust indenture relating to the is-
33       suance and security of the bonds may set forth covenants, agreements
34       and obligations therein, which may be enforced by mandamus or other
35       appropriate proceeding at law or in equity.
36             (e) The bonds may be issued under the provisions of this act without
37       obtaining the consent of any department, division, commission, board,
38       bureau or agency of the state and without any other proceedings or the
39       happening of any other conditions or things than those proceedings, con-
40       ditions or things which are specifically required by this act.
41             Sec.  11. K.S.A. 75-5032 is hereby amended to read as follows: 75-
42       5032. This act shall be known and may be cited as the Kansas elderly and
43       disabled coordinated public transportation assistance act.

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  1             Sec.  12. K.S.A. 75-5033 is hereby amended to read as follows: 75-
  2       5033. It is declared to be the purpose of this act to provide financial and
  3       administrative assistance to transportation systems which provide coor-
  4       dinated transportation services to the elderly and disabled elderly persons,
  5       persons with disabilities and the general public.
  6             Sec.  13. K.S.A. 75-5034 is hereby amended to read as follows: 75-
  7       5034. When used in this act:
  8             (a) "Transportation system" means all public and private transporta-
  9       tion providers which provide public transportation services to the elderly
10       and disabled elderly persons, persons with disabilities and the general
11       public, and which receive federal support through section 9, section 16
12       or section 18 49 U.S.C. §  5307, 5310 or 5311 from the U.S. department
13       of transportation, urban mass transportation federal transit
14       administration.
15             (b) "Transportation" means the movement of individuals and meals
16       in a four or more wheeled motorized vehicle designed to carry passengers.
17       Transportation does not include emergency or school transportation.
18             (c) "Coordination" means where programmatically feasible, all enti-
19       ties involved in administrating and/or providing transportation and related
20       services to the elderly, disabled, elderly persons, persons with disabilities
21       and the general public will work together in a smooth, concerted effort
22       to effectively use resources and alleviate duplication of services.
23             (d) "Elderly" "Elderly persons" means those persons 60 years of age
24       or older.
25             (e) "Disabled" "Persons with disabilities" means those persons de-
26       termined by the department of transportation to be disadvantaged in
27       terms of the transportation services available to them due to physical or
28       mental disability.
29             (f) "Public transportation services" means those services accessible to
30       the general public elderly and disabled community elderly persons, per-
31       sons with disabilities and the general public.
32             (g) "Department" means the Kansas department of transportation.
33             (h) "Secretary" means the secretary of the department of transpor-
34       tation or designee.
35             Sec.  14. K.S.A. 75-5035 is hereby amended to read as follows: 75-
36       5035. (a) There is hereby established in the state treasury the elderly and
37       disabled coordinated public transportation assistance fund. Any expend-
38       itures from the fund shall be for the coordinated development, improve-
39       ment or maintenance of transportation systems for elderly or disabled
40       persons persons, persons with disabilities or the general public under this
41       act and shall be made in accordance with appropriation acts upon war-
42       rants of the director of accounts and reports issued pursuant to vouchers
43       approved by the secretary or by a person designated by the secretary.

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  1             (b) On July 1, 1994 1999, and each July 1 thereafter, the director of
  2       accounts and reports shall transfer $1,000,000 $8,800,000 from the state
  3       highway fund to the elderly and disabled coordinated public transporta-
  4       tion assistance fund.
  5             Sec.  15. K.S.A. 75-5037 is hereby amended to read as follows: 75-
  6       5037. (a) The secretary shall administer and allocate funds appropriated
  7       under this act for the purpose of providing financial and administrative
  8       assistance to transportation systems.
  9             (b) The secretary shall determine the eligibility of each applicant.
10             The following criteria shall be used in determining eligibility:
11             (1) Whether the proposal serves the transportation needs of the eld-
12       erly and disabled citizens elderly persons, persons with disabilities and
13       the general public of the proposed service area;
14             (2) whether resources for transportation services are utilized in an
15       effective and efficient manner;
16             (3) whether duplicative and inefficient administrative costs and trans-
17       portation services are avoided.
18             (c) No more than 1% of the funds provided under this act shall be
19       expended for administrative purposes.
20             Sec.  16. K.S.A. 75-5048 is hereby amended to read as follows: 75-
21       5048. (a) The secretary of transportation is hereby authorized to make
22       loans or grants to a qualified entity for the purpose of facilitating the
23       financing, acquisition or rehabilitation of railroads in the state of Kansas.
24             (b) Such loans or grants shall be made upon such terms and condi-
25       tions as the secretary of transportation may deem appropriate, and such
26       loans or grants shall be made from funds credited to the rail service
27       improvement fund.
28             (c) The rail service improvement fund is hereby established in the
29       state treasury which shall be for the purpose of facilitating the financing,
30       acquisition and rehabilitation of railroads pursuant to subsection (a) of
31       this section and for the refinancing thereof. The secretary of transporta-
32       tion shall administer the rail service improvement fund. All expenditures
33       from the rail service improvement fund shall be made in accordance with
34       appropriation acts upon warrants of the director of accounts and reports
35       issued pursuant to vouchers approved by the secretary of transportation
36       or by a person or persons designated by the secretary.
37             (d) All moneys received from the federal government under the local
38       rail freight assistance program (49 U.S.C. 1654) shall be remitted to the
39       state treasurer. Upon receipt of each such remittance, the state treasurer
40       shall deposit the entire amount in the state treasury to the credit of the
41       rail service improvement fund.
42             (e) The management and investment of the rail service improvement
43       fund shall be in accordance with K.S.A. 68-2324, and amendments

HB 2417

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  1       thereto. Notwithstanding anything to the contrary, all interest or other
  2       income of the investments, after payment of any management fees, shall
  3       be considered income of the rail service improvement fund.
  4             (f)  (1) On July 1, 1999, and each July 1 thereafter, the director of
  5       accounts and reports shall transfer $3,000,000 from the state highway
  6       fund to the rail service improvement fund.
  7             (2) The provisions of this subsection shall expire on June 30, 2007.
  8             (e) (g) "Qualified entity" means any interstate commerce commission
  9       certificated railroad, a port authority established in accordance with Kan-
10       sas laws, or any entity meeting the rules and regulations established by
11       K.S.A. 75-5050, and amendments thereto.
12             Sec.  17. K.S.A. 75-5053 is hereby amended to read as follows: 75-
13       5053. When used in this act:
14             (a) "Transportation" means the movement of individuals in a four or
15       more-wheeled motorized vehicle designed to carry passengers. Trans-
16       portation does not include emergency or school transportation.
17             (b) "Nonurbanized area" designates any city or county with a popu-
18       lation of less than 50,000 population.
19             (c) "Rural transportation system" means all public and private trans-
20       portation agencies which provide transportation services in nonurbanized
21       portions of the state and which receive federal support through 49
22       U.S.C.§  5310, 49 U.S.C. §  5311 from the United States department of
23       transportation, federal transit administration, or from the Kansas elderly
24       and disabled coordinated public transportation assistance act, or from
25       both.
26             (d) "Specialized transportation system" means all public and private
27       transportation agencies which provide transportation services to elderly
28       or disabled passengers persons or persons with disabilities and which
29       receive federal support through 49 U.S.C. §  5310 from the United States
30       department of transportation, federal transit administration, or the Kansas
31       elderly and disabled coordinated public transportation assistance act, or
32       from both.
33             (e) "Coordinated transit district" means a public or private not-for-
34       profit agency with an established purpose to distribute funds and monitor
35       implementation of passenger transportation services in a designated area
36       of the state.
37             (f) "Administrator" means the agency selected to receive funds from
38       the department for provision of transportation services in the designated
39       area.
40             (g) "Elderly" "Elderly person" means those persons 60 years of age
41       or older.
42             (h) "Disabled" "Persons with disabilities" means those persons de-
43       termined by the department of transportation to be disadvantaged in

HB 2417

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  1       terms of the transportation services available to them due to physical or
  2       mental disability.
  3             (i) "Coordination" means where programmatically feasible, all enti-
  4       ties involved in administrating or providing transportation and related
  5       services to the elderly, disabled elderly persons, persons with disabilities
  6       and the general public will work together in a smooth, concerted effort
  7       to effectively use resources and alleviate duplication of services.
  8             (j) "Department" means the Kansas department of transportation.
  9             (k) "Secretary" means the secretary of the department of
10       transportation.
11             Sec.  18. K.S.A. 75-5056 is hereby amended to read as follows: 75-
12       5056. (a) The secretary shall establish coordinated transit districts for the
13       purpose of providing financial and administrative assistance to transpor-
14       tation systems.
15             (b) The secretary shall determine the eligibility of each agency to
16       serve as coordinated transit district administrator. The following criteria
17       shall be used in determining eligibility:
18             (1) Whether the proposal serves the transportation needs of the eld-
19       erly, disabled elderly persons, persons with disabilities and the general
20       public citizens of the proposed district;
21             (2) whether resources for transportation services are utilized in an
22       effective and efficient manner; and
23             (3) whether the proposal is consistent with the statewide coordinated
24       transit district plan.
25             (c) The secretary shall administer and allocate funds to qualified co-
26       ordinated transit district administrators, consistent with the statewide co-
27       ordinated transit district plan.
28             Sec.  19. K.S.A. 75-5061 is hereby amended to read as follows: 75-
29       5061. (a) The secretary of transportation is hereby authorized and em-
30       powered to: (1) Solicit and receive moneys from any public or private
31       sources; and (2) establish and administer a grant program for public use
32       general aviation airports for the purpose of planning, constructing, re-
33       constructing or rehabilitating the facilities of such public use general avi-
34       ation airports.
35             (b) Such grants shall be made upon such terms and conditions as the
36       secretary of transportation deems appropriate, and such grants shall be
37       made from funds credited to the public use general aviation airport de-
38       velopment fund.
39             (c) The public use general aviation airport development fund is
40       hereby established in the state treasury which shall be for the purpose of
41       planning, constructing, reconstructing or rehabilitating the facilities of
42       public use general aviation airports pursuant to subsection (a) of this sec-
43       tion. All moneys received pursuant to subsection (a) shall be remitted to

HB 2417

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  1       the state treasurer at least monthly and deposited in the state treasury to
  2       the credit of the public use general aviation airport development fund.
  3       The secretary of transportation shall administer the public use general
  4       aviation airport development fund. All expenditures from the public use
  5       general aviation airport development fund shall be made in accordance
  6       with appropriation acts upon warrants of the director of accounts and
  7       reports issued pursuant to vouchers approved by the secretary of trans-
  8       portation or by a person or persons designated by the secretary.
  9             (d) On July 1, 1999, and each July 1 thereafter, the director of ac-
10       counts and reports shall transfer $3,000,000 from the state highway fund
11       to the public use general aviation airport development fund.
12             (d) (e) As used in this section "public use general aviation airport"
13       means any airport available for use by the general public for the landing
14       and taking off of aircraft, but shall not include any airport classified as a
15       primary airport by the federal aviation administration.
16             (e) (f) The secretary of transportation may adopt rules and regulations
17       for the purpose of implementing the provisions of this section.
18             Sec.  20. K.S.A. 79-3425 is hereby amended to read as follows: 79-
19       3425. (a) All of the amounts collected under the motor-fuel tax law and
20       amendments thereto, except amounts collected pursuant to K.S.A. 79-
21       3408c, and amendments thereto, shall be remitted by the director to the
22       state treasurer daily, and the state treasurer shall deposit all such amounts
23       in the state treasury. The state treasurer shall credit such amount thereof
24       as the director shall order in the motor-vehicle fuel tax refund fund to be
25       used for the purpose of paying motor-vehicle fuel tax refunds as provided
26       by law. The state treasurer shall credit the remainder of such amounts as
27       follows: To the state freeway fund which highway fund is hereby created,
28       amounts specified in K.S.A. 79-34,142, and amendments thereto, to be
29       expended in the manner provided in K.S.A. 68-2301, and amendments
30       thereto, to a special city and county highway fund which is hereby created,
31       amounts specified in K.S.A. 79-34,142, and amendments thereto, to be
32       apportioned and distributed in the manner provided in K.S.A. 79-3425c,
33       and amendments thereto, and to the Kansas qualified agricultural ethyl
34       alcohol producer incentive fund, which is hereby created in the state
35       treasury, in the amount and in the manner specified in K.S.A. 79-34,161,
36       and amendments thereto, to be expended in the manner provided in
37       K.S.A. 79-34,162, and amendments thereto.
38             (b) On each day, after the state treasurer has received certification
39       from the secretary of transportation that provisions have been made for
40       the payment of the pro rata share of the amount required to be paid on
41       the next ensuing payment date of either the principal of or the interest
42       on the outstanding highway bonds issued pursuant to K.S.A. 68-2304 and
43       amendments thereto, the state treasurer shall transfer from the state free-

HB 2417

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  1       way fund to the state highway fund an amount specified in K.S.A. 79-
  2       34,143, and amendments thereto.
  3             Sec.  21. K.S.A. 79-3425c is hereby amended to read as follows: 79-
  4       3425c. (a) On January 15, April 15, July 15 and October 15 of each year,
  5       the director of accounts and reports shall transfer $625,000 to the county
  6       equalization and adjustment fund from the special city and county high-
  7       way fund and on such dates the state treasurer shall apportion and pay
  8       to the several counties of the state 57% of the moneys in the special city
  9       and county highway fund, created by K.S.A. 79-3425, and amendments
10       thereto, and shall apportion and pay to the several cities of the state the
11       remaining 43% of such moneys.
12             (b)  \ fs\ (1) Except as provided in paragraph (2) of this subsection, The
13       allocation and payment to each county under the provisions of this section
14       shall be made in the following manner:
15             First, Each county of the state shall receive a payment of $5,000;
16             Second, Of the balance remaining, 50% 44.06% thereof shall be ap-
17       portioned and paid to each county on January 15 and April 15 of each
18       year in the proportion that the total amount of money collected in such
19       county from motor vehicle registration fees for the second preceding
20       calendar year bears to the total amount of money collected in all counties
21       from motor vehicle registration fees for the second preceding calendar
22       year, and on July 15 and October 15 of each year in the proportion that
23       the total amount of money collected in such county from motor vehicle
24       registration fees for the preceding calendar year bears to the total amount
25       of money collected in all counties from motor vehicle registration fees
26       for the preceding calendar year;
27             Third, The remaining 50% 44.06% of such balance shall be apportioned
28       and paid to each county on January 15 and April 15 of each year in the
29       proportion that the average daily vehicle miles traveled in such county
30       for the second preceding calendar year bears to the average daily vehicle
31       miles traveled in all counties of the state for the second preceding cal-
32       endar year, and on July 15 and October 15 of each year in the proportion
33       that the average daily vehicle miles traveled in such county for the pre-
34       ceding calendar year bears to the average daily vehicle miles traveled in
35       all counties of the state for the preceding calendar year; and
36             (2) the allocation and payment to each county of the new revenue
37       provided under the provisions of this act to the special city and county
38       highway fund shall be made in the following manner:
39             First, 331/3% of such revenue shall be apportioned and paid in accord-
40       ance with the provisions of Second of subsection (b)(1);
41             Second, 331/3% of such revenue shall be apportioned and paid in ac-
42       cordance with the provisions of Third of subsection (b)(1);
43             Third Fourth, the remaining 331/3% 11.88% of such balance shall be

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  1       apportioned and paid to each county on January 15 and April 15 of each
  2       year in the proportion that the total road miles in such county for the
  3       second preceding calendar year bears to the total road miles in all counties
  4       of the state for the second preceding calendar year; and on July 15 and
  5       October 15 of each year in the proportion that the total road miles in
  6       such county for the preceding calendar year bears to the total road miles
  7       in all counties of the state for the preceding calendar year.
  8             If the total amount of money received by any county pursuant to the
  9       foregoing distribution formula and by all cities located within such county
10       pursuant to subsection (c) of this section during the period from July 15
11       of any year to April 15 of the next succeeding year is less than the total
12       amount received by such county and all cities located within such county
13       from the county road and city street fund, the special city and county
14       highway fund, the county and township road fund and the special motor
15       carrier fee county road fund during the period from July 1, 1969, to June
16       30, 1970, plus the total amount such county and all cities located within
17       such county would have received on July 15, 1970, from the special city
18       and county highway fund based on the formula for distributing such fund
19       in effect on June 30, 1970, then on April 15 of each year from the special
20       city and county highway fund and the county equalization and adjustment
21       fund for fiscal year 1999, the state treasurer shall apportion and pay to
22       each such county from the county equalization and adjustment fund an
23       amount which together with the amount received pursuant to the fore-
24       going distribution formula will equal the total amount received from the
25       four two aforementioned funds during such period of time plus the total
26       amount such county and all cities located within such county would have
27       received on July 15, 1970, from the special city and county highway fund
28       based on the formula for distributing such fund in effect on June 30,
29       1970. In the event that there is insufficient funds in the county equali-
30       zation and adjustment fund to pay each county the amount to which it is
31       entitled, each county shall receive a payment in the proportion that the
32       amount to which such county is entitled bears to the amount to which all
33       such counties are entitled. If there is money remaining in such fund after
34       such distribution, the state treasurer shall distribute the balance to the
35       several counties in the manner provided in the second and third clauses
36       of the foregoing formula for distributing moneys to counties from the
37       special city and county highway fund.
38             All payments shall be made to the county treasurers of the respective
39       counties, and upon receipt of the same:
40             (1) The county treasurers of Sedgwick and Shawnee counties shall
41       credit 50% of the moneys received to the road and bridge fund of such
42       counties and apportion and pay the remainder of such moneys to the
43       several cities located in such counties;

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  1             (2) the county treasurer of Wyandotte county shall credit 10% of the
  2       moneys received to the road and bridge fund of such county and appor-
  3       tion and pay the remainder of such moneys to the several cities located
  4       in such county;
  5             (3) the county treasurers of Lyon, Cowley, Crawford, Montgomery,
  6       Butler, Saline, Leavenworth, Riley, Reno and Douglas counties shall
  7       credit 90% of the moneys so received to the road and bridge fund of such
  8       counties and apportion and pay the remainder of such moneys to the
  9       several cities located in such counties except that no persons residing
10       within the Fort Riley military reservation shall be included or considered
11       in determining the population of any city located within Geary or Riley
12       county; and
13             (4) the county treasurers of Johnson county and all other counties not
14       listed in paragraphs (1), (2) or (3) shall credit all of the moneys received
15       to the road and bridge fund of such counties.
16             Not less than 25% of the amount received by each county and credited
17       to the county road and bridge fund under the provisions of this section
18       shall be expended by the county on mail and school bus routes on county
19       roads as defined in K.S.A. 68-101, and amendments thereto. Payments
20       to the cities under the provisions of this subsection shall be in the pro-
21       portion that the population of each city bears to the total population of
22       all cities located in the same county as such city.
23             In counties which have not adopted the county-unit road system, the
24       amount of money retained by such counties after distribution to the cities
25       within such county pursuant to this subsection shall be distributed to each
26       township within such county in not less than the proportion that the
27       amount of money received by each township from the county and town-
28       ship road fund during the period from July 1, 1969, to June 30, 1970,
29       bears to the total amount of money received by such county from the
30       county and township road fund, the county road and city street funds,
31       the special motor carrier fee county road fund and the special city and
32       county highway fund during the period from July 1, 1969, to June 30,
33       1970, plus the amount such county would have received on July 15, 1970,
34       from the special city and county highway fund based on the formula for
35       distributing such fund in effect on June 30, 1970. All payments to town-
36       ships hereunder shall be made to the treasurers thereof, and all moneys
37       so received shall be deposited in the general road fund of such township.
38             (c) The allocation and payment of moneys to the several cities of the
39       state from the special city and county highway fund shall be in the pro-
40       portion that the population of each city bears to the total population of
41       all cities in the state except that the population of any military reservation
42       which has been annexed to a city after the date of December 31, 1981,
43       shall not be included in the population of such city for the purpose of this

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  1       allocation. All such payments shall be to the city treasurers of the re-
  2       spective cities. Upon receipt of same unless a consolidated street and
  3       highway fund is established pursuant to K.S.A. 12-1,119, and amend-
  4       ments thereto, the city treasurer of each city shall credit the same to a
  5       separate fund to be used for the construction, reconstruction, alteration,
  6       repair and maintenance of the streets and highways of such city and for
  7       the payment of bonds, and interest thereon, issued pursuant to K.S.A.
  8       79-3425g, and amendments thereto. In order to reduce vehicular traffic
  9       and congestion on its streets and highways, any city located within John-
10       son county may use not to exceed 10% of the moneys credited to such
11       fund for the purpose of constructing, repairing and maintaining footpaths
12       and bicycle trails within such city.
13             (d) For the purposes of this section, the average daily vehicle miles
14       traveled in each county shall be determined by the secretary of transpor-
15       tation, but it shall not include miles traveled on interstate highways, and
16       the population of each city shall be reported in the annual enumeration
17       by the state board of agriculture for the preceding calendar year.
18             (e) In order to reduce vehicular traffic and congestion on its streets
19       and highways, the board of county commissioners of any county, the
20       governing body of any city or the township board of any township may
21       use for the purpose of constructing, repairing and maintaining footpaths
22       and bicycle paths not to exceed 10% of the moneys such government
23       receives under K.S.A. 79-3425c, and amendments thereto, except that such
24       limitation shall not apply to moneys received by a county that the county
25       is required to distribute to a city or a township.
26             Sec.  22. K.S.A. 79-34,104 is hereby amended to read as follows: 79-
27       34,104. (a) All amounts collected under the liquefied petroleum motor-
28       fuel tax law, except amounts collected pursuant to K.S.A. 79-3491a, and
29       amendments thereto, shall be remitted by the director to the state trea-
30       surer daily, and the state treasurer shall deposit the same in the state
31       treasury. The state treasurer shall credit such amounts as follows: To the
32       state freeway highway fund amounts specified in K.S.A. 79-34,142, and
33       amendments thereto, to be expended in the manner provided in K.S.A.
34       68-2301, and amendments thereto, and amounts specified in K.S.A. 79-
35       34,142, and amendments thereto, to a special city and county highway
36       fund to be apportioned and distributed in the manner provided in K.S.A.
37       79-3425c, and amendments thereto.
38             (b) On each day after the state treasurer has received certification
39       from the secretary of transportation that provisions have been made for
40       the payment of the pro rata share of the amount required to be paid on
41       the next ensuing payment date of either principal and interest or interest
42       on the outstanding highway bonds issued pursuant to K.S.A. 68-2304, and
43       amendments thereto, the state treasurer shall transfer from the state free-

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  1       way fund to the state highway fund an amount specified in K.S.A. 79-
  2       34,143, and amendments thereto.
  3             Sec.  23. K.S.A. 79-34,126 is hereby amended to read as follows: 79-
  4       34,126. (a) All amounts collected under the interstate motor fuel use act
  5       shall be remitted by the director to the state treasurer daily, and the state
  6       treasurer shall deposit the same in the state treasury. The state treasurer
  7       shall credit such amounts as follows: To the state freeway highway fund
  8       amounts specified in K.S.A. 79-34,142, and amendments thereto, to be
  9       expended in the manner provided in K.S.A. 68-2301, and amendments
10       thereto, and amounts specified in K.S.A. 79-34,142, and amendments
11       thereto, to a special city and county highway fund to be apportioned and
12       distributed in the manner provided in K.S.A. 79-3425c, and amendments
13       thereto.
14             (b) On each day after the state treasurer has received certification
15       from the secretary of transportation that provisions have been made for
16       the payment of the pro rata share of the amount required to be paid on
17       the next ensuing payment date of either principal and interest or interest
18       on the outstanding highway bonds issued pursuant to K.S.A. 68-2304, and
19       amendments thereto, the state treasurer shall transfer from the state free-
20       way fund to the state highway fund an amount prescribed by K.S.A. 79-
21       34,143, and amendments thereto.
22             (c) (b) All amounts collected under the international fuel tax agree-
23       ment shall be remitted by the director to the state treasurer daily. The
24       state treasurer shall deposit the entire amount in the state treasury and
25       credit such amount to the international fuel tax agreement clearing fund
26       which is hereby created. Payments due and owing to member jurisdic-
27       tions under the international fuel tax agreement and refunds for over-
28       payment of tax shall be made from such fund. The director shall reconcile
29       such clearing fund monthly with balances remitted monthly in accordance
30       with the provisions of subsection (a). The funds in the international fuel
31       tax agreement clearing fund shall be invested in the same manner as
32       provided in K.S.A. 68-2324, and amendments thereto, and all earnings
33       shall be deposited in the state treasury and credited to the state highway
34       fund.
35             Sec.  24. K.S.A. 79-34,142 is hereby amended to read as follows: 79-
36       34,142. On and after August 1, 1989, The state treasurer shall credit
37       amounts received pursuant to K.S.A. 79-3408, 79-3408c, 79-3491a, 79-
38       3492 and 79-34,118 and amendments thereto as follows: To the state
39       freeway highway fund 59.5% 55.3% and to the special city and county
40       highway fund 40.5% 44.7%.
41             Sec.  25. K.S.A. 1998 Supp. 79-34,147 is hereby amended to read as
42       follows: 79-34,147. (a) (1) On each January 1, April 1, July 1 and October
43       1 July 1, October 1, January 1 and April 1, the secretary of revenue shall

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  1       certify to the director of accounts and reports the amount equal to 7.628%
  2       the percentage specified in paragraph (2) of the total revenues received
  3       by the secretary from the taxes imposed under the Kansas retailers' sales
  4       tax act and deposited in the state treasury and credited to the state general
  5       fund during the preceding three calendar months.
6       (2)  (A)For fiscal year 2000 9.454%
7       (B)For fiscal year 2001 12.21%
8       (C)For fiscal year 2002 15.84%
9       (D)For fiscal year 2003 19.69%
10       (E)For fiscal year 2004 23.76%
11       (F)For fiscal year 2005 26.38%
12       (G)For fiscal year 2006 26.95%
13       (H)For fiscal year 2007 and each fiscal year thereafter 27.45%
14             (b) Upon receipt of each certification under subsection (a), the di-
15       rector of accounts and reports shall transfer from the state general fund
16       to the state highway fund an amount equal to the amount so certified, on
17       each January 1, April 1, July 1 and October 1, except that the amount of
18       the transfer on each such date during state fiscal year 1999 shall not
19       exceed the amount equal to 102.4% of the amount transferred on the
20       same date during state fiscal year 1998. All transfers made pursuant to
21       this section are subject to reduction under K.S.A. 75-6704, and amend-
22       ments thereto.
23             (c) All transfers made in accordance with the provisions of this section
24       shall be considered to be demand transfers from the state general fund.
25             Sec.  26. K.S.A. 79-34,161 is hereby amended to read as follows: 79-
26       34,161. On October 1, 1987, and quarterly thereafter, the state treasurer
27       shall credit $625,000 from the amounts remaining after the state treasurer
28       credits an amount to the motor vehicle fuel tax refund fund as provided
29       in subsection (a) of K.S.A. 79-3425, and amendments thereto, in the Kan-
30       sas qualified agricultural ethyl alcohol producer incentive fund.
31             Sec.  27. K.S.A. 79-34,162 is hereby amended to read as follows: 79-
32       34,162. (a) All moneys in the Kansas qualified agricultural ethyl alcohol
33       producer incentive fund shall be expended by the secretary of the de-
34       partment of revenue for the payment of producer incentives for the pro-
35       duction of agricultural ethyl alcohol under the provisions of this act.
36             (b) All moneys remaining in the Kansas qualified agricultural ethyl
37       alcohol producer incentive fund upon the expiration of this act shall be
38       credited by the state treasurer in the manner provided by subsection (a)
39       of K.S.A. 79-3425, and amendments thereto. 
40       Sec.  28. K.S.A. 12-1,119, 66-231a, 66-231b, 68-402e, 68-417, 68-
41       417a, 68-417b, 68-2033, 68-2073, 68-2096, 68-2315, 68-2316, 68-2318,
42       68-2320, 75-5032, 75-5033, 75-5034, 75-5035, 75-5037, 75-5048, 75-
43       5053, 75-5056, 75-5061, 79-3425, 79-3425c, 79-3425d, 79-34,104, 79-

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  1       34,126, 79-34,142, 79-34,143, 79-34,161 and 79-34,162 and K.S.A. 1998
  2       Supp. 68-416, 68-2314, 68-2321 and 79-34,147 are hereby repealed.
  3        Sec.  29. This act shall take effect and be in force from and after its
  4       publication in the statute book.