Session of 1999
         
SENATE BILL No. 99
         
By Committee on Transportation and Tourism
          
1-21
          
  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, 68-
12             2328, 75-5032, 75-5033, 75-5034, 75-5035, 75-5037, 75-5046, 75-5048,
13             75-5053, 75-5056, 75-5061, 79-3425, 79-3425c, 79-34,104, 79-34,126,
14             79-34,142, 79-34,161 and 79-34,162 and K.S.A. 1998 Supp. 12-187,
15             68-416, 68-2321 and 79-34,147 and repealing the existing sections; also
16             repealing K.S.A. 66-231a, 66-231b, 68-402e, 68-417, 68-417a, 68-417b,
17             68-2318, 79-3425d and 79-34,143 and K.S.A. 1998 Supp. 68-2314.
18      
19       Be it enacted by the Legislature of the State of Kansas:
20             New Section  1. (a) In order to plan, develop and operate or coor-
21       dinate the development and operation of the various modes and systems
22       of transportation within the state, the secretary of transportation is hereby
23       authorized and directed to initiate a comprehensive transportation
24       program.
25             (b) The comprehensive transportation program shall provide for the
26       construction, improvement, reconstruction and maintenance of the state
27       highway system. These expenditures may include but not be limited to
28       the following:
29             (1) Maintenance programs to efficiently maintain a safe state highway
30       system in its original or improved condition. It is the intent of the legis-
31       lature that the surface condition of the state highway system and its
32       bridges, as measured by the Kansas department of transportation pave-
33       ment and bridge management systems, shall be maintained or improved;
34             (2) construction and reconstruction programs to develop, to the ex-
35       tent practical, the state highway system including major modification pro-
36       jects to improve service, comfort, capacity, condition, economy or safety
37       of the existing system and priority bridge projects to replace or rehabili-
38       tate bridges that have a deteriorated condition or that have deficiencies
39       in load carrying capacity, width or traffic service;
40             (3) system enhancement projects which include additions to the sys-
41       tem of highways or which substantially improve safety, relieve congestion,
42       improve access or enhance economic development. The Kansas depart-
43       ment of transportation shall utilize the selection methodology developed

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  1       by the department, to select system enhancement projects;
  2             (4) a highway demonstration project for the purpose of demonstrat-
  3       ing advanced and innovative pavement technologies which may include
  4       financing, design, construction and performance guarantee. The secretary
  5       is authorized to procure such demonstration project in the same manner
  6       as engineering services are procured under K.S.A. 75-5801, et seq., and
  7       amendments thereto, and such demonstration project need not comply
  8       with the provisions of K.S.A. 68-410 or 75-430a, and amendments thereto,
  9       or any other applicable statute to the procurement of state highway con-
10       struction contracts.
11             (c) The comprehensive transportation program shall provide for as-
12       sistance, including credit and credit enhancements, to cities and counties
13       in meeting their responsibilities for the construction, improvement, re-
14       construction and maintenance of the roads and bridges not on the state
15       highway system. These expenditures may include but not be limited to
16       the following:
17             (1) Apportionment of the special city and county highway fund to
18       assist cities and counties with their responsibilities for roads and bridges
19       not on the state highway system;
20             (2) programs to share federal aid with cities and counties to assist
21       with their responsibilities for roads and bridges not on the state highway
22       system;
23             (3) programs to assist cities with the maintenance of city connecting
24       links as specified in K.S.A. 68-416, and amendments thereto, and local
25       partnership programs to resurface or geometrically improve city con-
26       necting links or to promote economic development; or
27             (4) programs to assist cities and counties with railroad crossings of
28       roads not on the state highway system.
29             (d) The comprehensive transportation program shall provide for a
30       railroad program to provide assistance in accordance with K.S.A. 75-5040
31       through 75-5050, and amendments thereto, for the preservation and re-
32       vitalization of rail service in the state.
33             (e) The comprehensive transportation program shall provide for an
34       aviation program to provide assistance for the planning, constructing, re-
35       constructing or rehabilitating the facilities of public use general aviation
36       airports, in accordance with K.S.A. 75-5061, and amendments thereto.
37             (f) The comprehensive transportation program shall provide for pub-
38       lic transit programs to aid elderly persons, persons with disabilities and
39       the general public, in accordance with K.S.A. 75-5032 through 75-5038,
40       and amendments thereto, and K.S.A. 75-5051 through 75-5058, and
41       amendments thereto.
42             New Sec.  2. The secretary of transportation is hereby authorized to
43       establish a transportation revolving fund to provide assistance to govern-

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  1       mental units for transportation projects.
  2             New Sec.  3. As used in sections 2 through 8:
  3             (a) "Cost" means as applied to any qualified project, any or all costs,
  4       whenever incurred, approved by the department, for carrying out a qual-
  5       ified project;
  6             (b) "department" means the Kansas department of transportation es-
  7       tablished under K.S.A. 75-5001, and amendments thereto;
  8             (c) "fund" means the Kansas transportation revolving fund estab-
  9       lished by section 5;
10             (d) "governmental unit" means any town, city, district, county, com-
11       mission, agency, authority, board or other instrumentality of the state or
12       of any of its political subdivisions, including any combination thereof,
13       which is responsible for the construction, ownership or operation of a
14       qualified project;
15             (e) "private enterprise" means a private person or entity that has en-
16       tered into a contract with a public authority to design, finance, construct
17       and/or operate a qualified project that is within the jurisdiction of such
18       public authority;
19             (f) "project" means the acquisition, construction, improvement, re-
20       pair, rehabilitation, maintenance or extension of transportation facilities;
21             (g) "project costs" means all costs or expenses which are necessary
22       or incident to a project and which are directly attributable thereto;
23             (h) "project revenues" means all rates, rents, fees, assessments,
24       charges and other receipts derived or to be derived by a qualified bor-
25       rower from a qualified project;
26             (i) "qualified borrower" means any governmental unit or private en-
27       terprise which is authorized to construct, operate or own a qualified
28       project;
29             (j) "qualified project" means any public or private transportation pro-
30       ject, including, without limitation, the construction, reconstruction, re-
31       surfacing, restoration, rehabilitation or replacement of public or private
32       transportation facilities within the state;
33             (k) "revenues" means when used with respect to the department, any
34       receipts, fees, revenues or other payments received or to be received by
35       the department under sections 2 through 18;
36             (l) "secretary" means the secretary of the Kansas department of
37       transportation;
38             (m) "transportation project" means any bridge, culvert, highway,
39       road, street or combination thereof.
40             New Sec.  4. (a) The secretary shall administer the provisions of sec-
41       tions 2 through 8 and shall be responsible for the administration and
42       management of the fund, and shall have the power to enter into agree-
43       ments and contracts and to transfer money between the state highway

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  1       fund and the fund as required to effect the purposes of sections 2 through
  2       8.
  3             (b) The secretary shall adopt rules and regulations, to carry out the
  4       purposes and provisions of sections 2 through 8.
  5             New Sec.  5. (a) There is hereby established in the state treasury a
  6       fund to be known as the Kansas transportation revolving fund which shall
  7       consist of the following:
  8             (1) Amounts appropriated or otherwise made available by the legis-
  9       lature for the purposes of the fund;
10             (2) the proceeds, if any, from the sale of bonds issued pursuant to
11       section 6 for the purposes of the fund to the extent provided in any
12       agreement entered into between the secretary and the Kansas develop-
13       ment finance authority;
14             (3) amounts of repayments made by qualified borrowers of loans re-
15       ceived under sections 2 through 8, together with payments of interest
16       thereon, in accordance with agreements entered into between such qual-
17       ified borrowers and the secretary;
18             (4) amounts earned on moneys in the fund;
19             (5) amounts contributed or otherwise made available by any public
20       or private entity for use in effectuating the purposes of the fund; and
21             (6) amounts transferred by order of the secretary from the state high-
22       way fund.
23             (b) Subject to the provisions of sections 2 through 8, expenditures
24       from the fund shall be made for the following purposes:
25             (1) For the payment of the principal, including sinking fund payments
26       of and premium, if any, and interest on bonds issued pursuant to sections
27       2 through 8;
28             (2) for providing financial assistance to qualified borrowers to finance
29       qualified projects;
30             (3) for the maintenance of, or provision for, any reserves, additional
31       security, insurance or other form of credit enhancement to secure such
32       bonds required or provided for in any trust agreement entered into pur-
33       suant to sections 2 through 8;
34             (4) to guarantee, purchase insurance or provide other credit enhance-
35       ment for bonds of qualified borrowers issued to finance the costs of qual-
36       ified projects;
37             (5) to provide reserves for or otherwise secure bonds issued pursuant
38       to sections 2 through 8 and to provide insurance or other credit enhance-
39       ment for such bonds;
40             (6) to provide reserves for, or to otherwise secure, amounts payable
41       by qualified borrowers on loans made by and leases with the department
42       in the event of default by a particular qualified borrower or, on a parity
43       basis, by any qualified borrower;

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  1             (7) to provide a subsidy for, or to otherwise assist, qualified borrowers
  2       in the payment of debt service costs on loans made by the department
  3       hereunder;
  4             (8) for administrative costs of the fund or for any of the foregoing;
  5       and
  6             (9) the transfer of money by order of the secretary to the state high-
  7       way fund.
  8             New Sec.  6. The activities of the department in administering and
  9       performing the powers, duties and functions prescribed by the provisions
10       of sections 2 through 8 are hereby approved for the purposes of subsec-
11       tion (b) of K.S.A. 74-8905, and amendments thereto and the authorization
12       of issuance of bonds by the Kansas development finance authority in
13       accordance with that statute. The provisions of subsection (a) of K.S.A.
14       74-8905, and amendments thereto, shall not prohibit the issuance of
15       bonds for such purposes when so authorized and any such issuance of
16       bonds is exempt from the provisions of subsection (a) of K.S.A. 74-8905,
17       and amendments thereto.
18             New Sec.  7. (a) Qualified borrowers which desire assistance in the
19       form of a loan, credit enhancement or grant under sections 2 through 8
20       shall submit an application therefor to the secretary. Applications shall
21       be in such form and shall include such information as the secretary shall
22       require and shall be submitted in a manner and at a time to be determined
23       by the secretary.
24             (b) The secretary may enter into agreements with any qualified bor-
25       rower for payment of all or a part of project costs and any governmental
26       unit may enter into such an agreement and may accept such assistance
27       when so authorized by its governing body.
28             (c) The secretary shall provide any governmental unit, upon its re-
29       quest, with technical advice and assistance regarding a project or an ap-
30       plication for assistance. The secretary may assess reasonable fees for pro-
31       viding such assistance.
32             New Sec.  8. (a) Upon the failure of a governmental unit to meet the
33       repayment terms and conditions of an agreement, the secretary may order
34       the state treasurer to pay to the fund such portion of the governmental
35       unit's share of the special city and county highway fund as may be nec-
36       essary to meet the terms of the agreement.
37             (b) Any loans received by a governmental unit under the provisions
38       of sections 2 through 8 shall be construed to be bonds for the purposes
39       of K.S.A. 10-1116 and 79-5028, and amendments thereto, and the amount
40       of such loans shall not be included within any limitation on the bonded
41       indebtedness of the governmental unit.
42             Sec.  9. K.S.A. 1998 Supp. 12-187 is hereby amended to read as fol-
43       lows: 12-187. (a)  (1) No city shall impose a retailers' sales tax under the

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  1       provisions of this act without the governing body of such city having first
  2       submitted such proposition to and having received the approval of a ma-
  3       jority of the electors of the city voting thereon at an election called and
  4       held therefor. The governing body of any city may submit the question
  5       of imposing a retailers' sales tax and the governing body shall be required
  6       to submit the question upon submission of a petition signed by electors
  7       of such city equal in number to not less than 10% of the electors of such
  8       city.
  9             (2) The governing body of any class B city located in any county which
10       does not impose a countywide retailers' sales tax pursuant to paragraph
11       (5) of subsection (b) may submit the question of imposing a retailers' sales
12       tax at the rate of .25%, .5%, .75% or 1% and pledging the revenue re-
13       ceived therefrom for the purpose of financing the provision of health care
14       services, as enumerated in the question, to the electors at an election
15       called and held thereon. The tax imposed pursuant to this paragraph shall
16       be deemed to be in addition to the rate limitations prescribed in K.S.A.
17       12-189, and amendments thereto. As used in this paragraph, health care
18       services shall include but not be limited to the following: Local health
19       departments, city, county or district hospitals, city or county nursing
20       homes, preventive health care services including immunizations, prenatal
21       care and the postponement of entry into nursing homes by home health
22       care services, mental health services, indigent health care, physician or
23       health care worker recruitment, health education, emergency medical
24       services, rural health clinics, integration of health care services, home
25       health services and rural health networks.
26             (b)  (1) The board of county commissioners of any county may submit
27       the question of imposing a countywide retailers' sales tax to the electors
28       at an election called and held thereon, and any such board shall be re-
29       quired to submit the question upon submission of a petition signed by
30       electors of such county equal in number to not less than 10% of the
31       electors of such county who voted at the last preceding general election
32       for the office of secretary of state, or upon receiving resolutions request-
33       ing such an election passed by not less than 2/3 of the membership of the
34       governing body of each of one or more cities within such county which
35       contains a population of not less than 25% of the entire population of the
36       county, or upon receiving resolutions requesting such an election passed
37       by 2/3 of the membership of the governing body of each of one or more
38       taxing subdivisions within such county which levy not less than 25% of
39       the property taxes levied by all taxing subdivisions within the county.
40             (2) The board of county commissioners of Atchison, Barton, Butler,
41       Cowley, Cherokee, Crawford, Ford, Jefferson, Lyon, Montgomery, Ot-
42       tawa, Riley, Saline, Seward and Wyandotte counties may submit the ques-
43       tion of imposing a countywide retailers' sales tax and pledging the revenue

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  1       received therefrom for the purpose of financing the construction or re-
  2       modeling of a courthouse, jail, law enforcement center facility or other
  3       county administrative facility, to the electors at an election called and
  4       held thereon. The tax imposed pursuant to this paragraph shall expire
  5       when sales tax sufficient to pay all of the costs incurred in the financing
  6       of such facility has been collected by retailers as determined by the sec-
  7       retary of revenue. Nothing in this paragraph shall be construed to allow
  8       the rate of tax imposed by Butler, Cowley, Lyon, Montgomery or Riley
  9       county pursuant to this paragraph to exceed or be imposed at any rate
10       other than the rates prescribed in K.S.A. 12-189, and amendments
11       thereto.
12             (3)  (A) Except as otherwise provided in this paragraph, the result of
13       the election held on November 8, 1988, on the question submitted by
14       the board of county commissioners of Jackson county for the purpose of
15       increasing its countywide retailers' sales tax by 1% is hereby declared
16       valid, and the revenue received therefrom by the county shall be ex-
17       pended solely for the purpose of financing the Banner Creek reservoir
18       project. The tax imposed pursuant to this paragraph shall take effect on
19       the effective date of this act and shall expire not later than five years after
20       such date.
21             (B) The result of the election held on November 8, 1994, on the
22       question submitted by the board of county commissioners of Ottawa
23       county for the purpose of increasing its countywide retailers' sales tax by
24       1% is hereby declared valid, and the revenue received therefrom by the
25       county shall be expended solely for the purpose of financing the erection,
26       construction and furnishing of a law enforcement center and jail facility.
27             (4) The board of county commissioners of Finney and Ford counties
28       may submit the question of imposing a countywide retailers' sales tax at
29       the rate of .25% and pledging the revenue received therefrom for the
30       purpose of financing all or any portion of the cost to be paid by Finney
31       or Ford county for construction of highway projects identified as system
32       enhancements under the provisions of paragraph (5) of subsection (b) of
33       K.S.A. 68-2314, and amendments thereto, to the electors at an election
34       called and held thereon. Such election shall be called and held in the
35       manner provided by the general bond law. The tax imposed pursuant to
36       this paragraph shall expire upon the payment of all costs authorized pur-
37       suant to this paragraph in the financing of such highway projects. Nothing
38       in this paragraph shall be construed to allow the rate of tax imposed by
39       Finney or Ford county pursuant to this paragraph to exceed the maximum
40       rate prescribed in K.S.A. 12-189, and amendments thereto. If any funds
41       remain upon the payment of all costs authorized pursuant to this para-
42       graph in the financing of such highway projects in Finney county, the
43       state treasurer shall remit such funds to the treasurer of Finney county

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  1       and upon receipt of such moneys shall be deposited to the credit of the
  2       county road and bridge fund. If any funds remain upon the payment of
  3       all costs authorized pursuant to this paragraph in the financing of such
  4       highway projects in Ford county, the state treasurer shall remit such funds
  5       to the treasurer of Ford county and upon receipt of such moneys shall
  6       be deposited to the credit of the county road and bridge fund.
  7             (5) The board of county commissioners of any county may submit the
  8       question of imposing a retailers' sales tax at the rate of .25%, .5%, .75%
  9       or 1% and pledging the revenue received therefrom for the purpose of
10       financing the provision of health care services, as enumerated in the ques-
11       tion, to the electors at an election called and held thereon. Whenever any
12       county imposes a tax pursuant to this paragraph, any tax imposed pursuant
13       to paragraph (2) of subsection (a) by any city located in such county shall
14       expire upon the effective date of the imposition of the countywide tax,
15       and thereafter the state treasurer shall remit to each such city that portion
16       of the countywide tax revenue collected by retailers within such city as
17       certified by the director of taxation. The tax imposed pursuant to this
18       paragraph shall be deemed to be in addition to the rate limitations pre-
19       scribed in K.S.A. 12-189, and amendments thereto. As used in this par-
20       agraph, health care services shall include but not be limited to the follow-
21       ing: Local health departments, city or county hospitals, city or county
22       nursing homes, preventive health care services including immunizations,
23       prenatal care and the postponement of entry into nursing homes by home
24       care services, mental health services, indigent health care, physician or
25       health care worker recruitment, health education, emergency medical
26       services, rural health clinics, integration of health care services, home
27       health services and rural health networks.
28             (6) The board of county commissioners of Allen county may submit
29       the question of imposing a countywide retailers' sales tax at the rate of
30       .5% and pledging the revenue received therefrom for the purpose of
31       financing the costs of operation and construction of a solid waste disposal
32       area or the modification of an existing landfill to comply with federal
33       regulations to the electors at an election called and held thereon. The tax
34       imposed pursuant to this paragraph shall expire upon the payment of all
35       costs incurred in the financing of the project undertaken. Nothing in this
36       paragraph shall be construed to allow the rate of tax imposed by Allen
37       county pursuant to this paragraph to exceed or be imposed at any rate
38       other than the rates prescribed in K.S.A. 12-189 and amendments
39       thereto.
40             (7) The board of county commissioners of Dickinson county may sub-
41       mit the question of imposing a countywide retailers' sales tax at the rate
42       of .50% and pledging the revenue received therefrom for the purpose of
43       financing the costs of roadway construction and improvement to the elec-

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  1       tors at an election called and held thereon. The tax imposed pursuant to
  2       this paragraph shall expire after five years from the date such tax is first
  3       collected.
  4             (8) The board of county commissioners of Sherman county may sub-
  5       mit the question of imposing a countywide retailers' sales tax at the rate
  6       of .25%, .5% or .75% and pledging the revenue therefrom for the purpose
  7       of financing the costs of the county roads 64 and 65 construction and
  8       improvement project. The tax imposed pursuant to this paragraph shall
  9       expire upon payment of all costs authorized pursuant to this paragraph
10       in the financing of such project.
11             (c) The boards of county commissioners of any two or more contig-
12       uous counties, upon adoption of a joint resolution by such boards, may
13       submit the question of imposing a retailers' sales tax within such counties
14       to the electors of such counties at an election called and held thereon
15       and such boards of any two or more contiguous counties shall be required
16       to submit such question upon submission of a petition in each of such
17       counties, signed by a number of electors of each of such counties where
18       submitted equal in number to not less than 10% of the electors of each
19       of such counties who voted at the last preceding general election for the
20       office of secretary of state, or upon receiving resolutions requesting such
21       an election passed by not less than 2/3 of the membership of the governing
22       body of each of one or more cities within each of such counties which
23       contains a population of not less than 25% of the entire population of
24       each of such counties, or upon receiving resolutions requesting such an
25       election passed by 2/3 of the membership of the governing body of each
26       of one or more taxing subdivisions within each of such counties which
27       levy not less than 25% of the property taxes levied by all taxing subdivi-
28       sions within each of such counties.
29             (d) Any city retailers' sales tax in the amount of .5% being levied by
30       a city on July 1, 1990, shall continue in effect until repealed in the manner
31       provided herein for the adoption and approval of such tax or until re-
32       pealed by the adoption of an ordinance so providing. In addition to any
33       city retailers' sales tax being levied by a city on July 1, 1990, any such city
34       may adopt an additional city retailers' sales tax in the amount of .25% or
35       .5%, provided that such additional tax is adopted and approved in the
36       manner provided for the adoption and approval of a city retailers' sales
37       tax. Any countywide retailers' sales tax in the amount of .5% or 1% in
38       effect on July 1, 1990, shall continue in effect until repealed in the manner
39       provided herein for the adoption and approval of such tax.
40             (e) A class D city shall have the same power to levy and collect a city
41       retailers' sales tax that a class A city is authorized to levy and collect and
42       in addition, the governing body of any class D city may submit the ques-
43       tion of imposing an additional city retailers' sales tax in the amount of

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  1       .125%, .25%, .5% or .75% and pledging the revenue received therefrom
  2       for economic development initiatives, strategic planning initiatives or for
  3       public infrastructure projects including buildings to the electors at an
  4       election called and held thereon. Any additional sales tax imposed pur-
  5       suant to this paragraph shall expire no later than five years from the date
  6       of imposition thereof.
  7             (f) Any city or county proposing to adopt a retailers' sales tax shall
  8       give notice of its intention to submit such proposition for approval by the
  9       electors in the manner required by K.S.A. 10-120, and amendments
10       thereto. The notices shall state the time of the election and the rate and
11       effective date of the proposed tax. If a majority of the electors voting
12       thereon at such election fail to approve the proposition, such proposition
13       may be resubmitted under the conditions and in the manner provided in
14       this act for submission of the proposition. If a majority of the electors
15       voting thereon at such election shall approve the levying of such tax, the
16       governing body of any such city or county shall provide by ordinance or
17       resolution, as the case may be, for the levy of the tax. Any repeal of such
18       tax or any reduction or increase in the rate thereof, within the limits
19       prescribed by K.S.A. 12-189, and amendments thereto, shall be accom-
20       plished in the manner provided herein for the adoption and approval of
21       such tax except that the repeal of any such city retailers' sales tax may be
22       accomplished by the adoption of an ordinance so providing.
23             (g) The sufficiency of the number of signers of any petition filed
24       under this section shall be determined by the county election officer.
25       Every election held under this act shall be conducted by the county elec-
26       tion officer.
27             (h) The governing body of the city or county proposing to levy any
28       retailers' sales tax shall specify the purpose or purposes for which the
29       revenue would be used, and a statement generally describing such pur-
30       pose or purposes shall be included as a part of the ballot proposition.
31             Sec.  10. K.S.A. 12-1,119 is hereby amended to read as follows: 12-
32       1,119. The governing body of any city may provide, by ordinance, for a
33       consolidated street and highway fund to which may be credited moneys
34       received by the city from state payments under the provisions of K.S.A.
35       68-416 and 79-3425c, and amendments thereto. The ordinance creating
36       such fund also may provide for annually budgeting the transfer of moneys
37       in the general or other operating funds of the city budgeted for street
38       and highway purposes to the consolidated street and highway fund. Mon-
39       eys in such fund shall be used solely for street and highway purposes.
40       Moneys received pursuant to subsection (b)(3) (a) of K.S.A. 68-416, and
41       amendments thereto, and credited to such fund shall be used solely for
42       the maintenance of streets and highways in the city designated by the
43       secretary of transportation as city connecting links.

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  1             Sec.  11. K.S.A. 1998 Supp. 68-416 is hereby amended to read as
  2       follows: 68-416. (a) All funds received by the various counties from the
  3       sale of benefit-district bonds heretofore or hereafter issued, under the
  4       provisions of K.S.A. 68-701 and 68-709, and amendments thereto, shall
  5       be transferred by the county treasurers to the state treasurer to be placed
  6       in the highway fund. Such amounts shall be expended in the counties
  7       from which they are received and for the purposes for which such bonds
  8       were issued. Nothing in this act shall be construed to relieve any county
  9       in which a benefit district has been organized under the provisions of
10       K.S.A. 68-701 et seq., and amendments thereto, from the duty and liability
11       to issue and sell bonds under the provisions thereof in the amount nec-
12       essary to pay such part of the cost of the construction of such benefit
13       district roads in the benefit district required to be paid by the county,
14       township and benefit district. Any unexpended balance remaining in the
15       fund in which is placed that part of the fees for registration sent to the
16       vehicle department or other official designated by law to receive the same,
17       and appropriated for use in the administration of the motor-vehicle reg-
18       istration act, unexpended at the end of any calendar year, shall be placed
19       in the highway fund.
20             (b) The state highway fund shall be apportioned as follows:
21             (1) The fund known as the "state highway benefit district fund" is
22       discontinued and hereafter the highway fund shall be used for the pay-
23       ment and reimbursement of benefit district costs and assessments for
24       such benefit districts that have been and may hereafter be constructed
25       as a part of the state highway system. On the effective date of this act the
26       state treasurer shall transfer all state highway benefit district funds to the
27       highway fund.
28             (2) (a) The secretary of transportation annually shall apportion and
29       distribute quarterly, on the first day of January, April, July and October,
30       to cities on the state highway system from the state highway fund moneys
31       at the rate of $2,000 $3,000 per year per lane per mile for the mainte-
32       nance of streets and highways in cities designated by the secretary as city
33       connecting links. Unless a consolidated street and highway fund is estab-
34       lished pursuant to K.S.A. 12-1,119, and amendments thereto, all moneys
35       distributed by the secretary shall be credited to the street and alley funds
36       of such cities. All moneys so distributed shall be used solely for the main-
37       tenance of city connecting links. Maintenance of such city connecting
38       links shall be as prescribed in K.S.A. 68-416a, and amendments thereto.
39       As used in this subsection, "lane" means the portion of the roadway for
40       use of moving traffic of a standard width prescribed by the secretary. In
41       lieu of such apportionment, the secretary, by and with the consent of the
42       governing body of any city within the state of Kansas, may maintain such
43       streets within the city and pay for such maintenance from the highway

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

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  1       by their maturity or maturities shall be determined as provided in such
  2       contract or agreement. Any such payments required to be made pursuant
  3       to such contract or agreement may be pledged or assigned by the au-
  4       thority in the same manner as tolls and other revenues of such turnpike
  5       project. Any such contract or agreement shall provide for reimbursement
  6       by the authority, from tolls or other revenues of such turnpike projects,
  7       to the secretary of transportation for the credit of the state highway fund,
  8       at any time or times and under such terms and conditions as may be set
  9       forth therein, of any amounts previously paid to the authority by the
10       secretary pursuant to the provisions of this paragraph: Provided, how-
11       ever,, except that if the revenues received from the operation and own-
12       ership of such turnpike project in any year, over and above the cost of
13       maintenance, repair and operation of such turnpike project incurred in
14       such year, shall exceed one hundred fifty percent (150%) 150% of clauses
15       (i), (ii) and (iii) above for such year, such excess must be reimbursed to
16       the secretary, for the credit of the state highway fund, until all amounts
17       previously paid to the authority by the secretary of transportation have
18       been reimbursed to said the secretary.
19             Any payments provided to be made in any year pursuant to the pro-
20       visions of this section to the authority from the state highway fund shall
21       be a lien and claim on the portion of said the highway fund which is made
22       available to the secretary of transportation by the provisions of subsection
23       (4) of K.S.A. 68-416, and amendments thereto, to be used by said secretary
24       in the construction, improvement, reconstruction and maintenance of the
25       state highway system and the support and maintenance of the department
26       of transportation and the expenses of administering the motor vehicle
27       registration and drivers license laws; but any such payments provided to
28       be made shall not be a lien or claim on any of the sums now provided by
29       subsections (1), (2) and (3) of K.S.A. 68-416: Provided, however,, and
30       amendments thereto, except that the secretary of transportation and the
31       authority may determine any priority as to lien and claim on said the fund
32       as between any such payments to the authority from said the fund on
33       account of any turnpike projects financed under the provisions of this act.
34       The laws of Kansas shall not be repealed or amended so as to cause the
35       moneys available in the state highway fund for making any payments to
36       the authority provided to be made pursuant to the provisions of this sec-
37       tion to be insufficient to make any such payments.
38             The provisions of any contract or agreement entered into pursuant to
39       the provisions of this section may be enforced by the authority or by the
40       trustee under any trust agreement authorized by the provisions of K.S.A.
41       68-2038, and amendments thereto.
42             Sec.  13. K.S.A. 68-2073 is hereby amended to read as follows: 68-
43       2073. The secretary of transportation and the authority are hereby au-

SB 99

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  1       thorized and empowered to make and enter into any and all contracts
  2       and agreements, including (but without limitation) any contract or agree-
  3       ment for the removal or construction of any bridge or other highway
  4       facility which they may deem necessary, desirable or incidental to the
  5       financing, construction, maintenance, repair or operation of any highway
  6       project financed under the provisions of this act.
  7             With respect to any highway project financed under the provisions of
  8       this act, the secretary of transportation is authorized and empowered to
  9       contract or agree with the authority to pay to the authority from the state
10       highway fund, upon order or voucher of the secretary in the manner
11       provided by law to the director of accounts and reports, in each year, such
12       amount or amounts as shall be required in such year to make up any
13       deficiency in the revenues received from the operation and ownership of
14       any highway project in such year, over and above the cost of maintenance,
15       repair and operation of such highway project and the creation of reserves
16       for such purposes in such year, (i) for paying the interest on all highway
17       revenue bonds or highway revenue refunding bonds issued by the au-
18       thority in connection with any such highway project, (ii) for retiring such
19       bonds by their maturity or maturities, and (iii) for paying the premium,
20       if any, on a specified aggregate principal amount of such bonds which
21       would be payable in such year if such principal amount of bonds were to
22       be redeemed prior to their maturity or maturities. The amount which is
23       required in each such year to provide for paying the interest on such
24       bonds and for retiring such bonds on or prior to their maturity or matur-
25       ities shall be determined as provided in such contract or agreement. Any
26       such payments required to be made pursuant to such contract or agree-
27       ment may be pledged or assigned by the authority in the same manner
28       as tolls and other revenues of such highway project. Any such contract or
29       agreement shall provide for reimbursement by the authority, from tolls
30       or other revenues of such highway project to the secretary of transpor-
31       tation for the credit of the state highway fund, at any time or times and
32       under such terms and conditions as may be set forth therein, if any
33       amounts previously paid to the authority by the secretary pursuant to the
34       provisions of this paragraph: Provided, however,, except that if the reve-
35       nues received from the operation and ownership of such highway project
36       in any year, over and above the cost of maintenance, repair and operation
37       of such highway project incurred in such year, shall exceed one hundred
38       fifty percent (150%) 150% of clauses (i), (ii) and (iii) above for such year,
39       such excess must be reimbursed to the secretary of transportation, for
40       the credit of the state highway fund, until all amounts previously paid to
41       the authority by the secretary of transportation have been reimbursed to
42       the secretary.
43             Any payments provided to be made in any year pursuant to the pro-

SB 99

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

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  1       for paying the interest on all highway revenue bonds or highway revenue
  2       refunding bonds issued by the authority in connection with any such high-
  3       way project, (ii) for retiring such bonds by their maturity or maturities,
  4       and (iii) for paying the premium, if any, on a specified aggregate principal
  5       amount of bonds which would be payable in such year if such principal
  6       amount of bonds were to be redeemed prior to their maturity or matur-
  7       ities. Any contract or agreement entered into pursuant to this section shall
  8       provide that all payments to the authority pursuant to this section shall
  9       be made from the state freeway fund, unless the moneys available in said
10       fund for making such payments are insufficient; and in such event, such
11       contract or agreement shall provide that any additional moneys needed
12       to make any such payment or payments shall be paid from the state high-
13       way fund. The amount which is required in each such year to provide for
14       paying the interest on such bonds and for retiring such bonds on or prior
15       to their maturity or maturities shall be determined as provided in such
16       contract or agreement. Any such payments required to be made pursuant
17       to such contract or agreement may be pledged or assigned by the au-
18       thority in the same manner as tolls and other revenues of such highway
19       project. Any such contract or agreement shall provide for reimbursement
20       by the authority, from tolls or other revenues of such highway project to
21       the secretary of transportation for the credit of the state highway fund or
22       state freeway fund, at any time or times and under such terms and con-
23       ditions as may be set forth therein, of any amounts previously paid to the
24       authority by the secretary of transportation pursuant to the provisions of
25       this paragraph: Provided, however,, except that if the revenues received
26       from the operation and ownership of such highway project in any year,
27       over and above the cost of maintenance, repair and operation of such
28       highway project incurred in such year, shall exceed one hundred fifty
29       percent (150%) 150% of clauses (i), (ii) and (iii) above for such year, such
30       excess must be reimbursed to the secretary, for the credit of the state
31       highway fund or state freeway fund, until all amounts previously paid to
32       the authority by the secretary have been reimbursed to the secretary. Any
33       moneys paid by the authority to the secretary pursuant to this section as
34       reimbursement for moneys previously paid from the state highway fund
35       or state freeway fund shall be deposited by the secretary in the state
36       treasury, and the state treasurer shall credit such moneys to the state
37       highway fund from which payments to the authority were made. Where
38       payments to the authority have been made from both the state highway
39       fund and state freeway fund, moneys paid as reimbursement therefor
40       shall be credited by the state treasurer to each such fund in the proportion
41       provided in the contract or agreement authorizing payments to the
42       authority.
43             Any payments authorized by subsection (b) of K.S.A. 68-2301, and

SB 99

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  1       provided to be made to the authority from the state freeway fund in any
  2       year pursuant to the provisions of this section shall be a lien and claim
  3       on that portion of said freeway fund which is not otherwise obligated for
  4       the payment of the principal of and interest on the highway bonds issued
  5       pursuant to K.S.A. 68-2304, and the pledge by the authority of any mon-
  6       eys paid to the authority from the freeway fund pursuant to this section
  7       shall be subordinate to the lien and claim on such fund under the pro-
  8       visions of K.S.A. 68-2304: Provided, That the secretary of transportation
  9       and the authority may determine any priority as to lien and claim on said
10       fund as between any such payments to the authority from said fund on
11       account of any highway projects financed under the provisions of this act.
12       The laws of Kansas shall not be repealed or amended so as to cause the
13       moneys available in the state freeway fund for making any payments to
14       the authority provided to be made pursuant to the provisions of this sec-
15       tion to be insufficient to make any such payments.
16             Any payments provided to be made in any year pursuant to the pro-
17       visions of this section to the authority from the state highway fund shall
18       be a lien and claim on the portion of said the highway fund which is made
19       available to the secretary of transportation by the provisions of subsection
20       (b)(4) of K.S.A. 68-416 to be used by said secretary in the construction,
21       improvement, reconstruction and maintenance of the state highway sys-
22       tem and the support and maintenance of the department of transportation
23       and the expenses of administering the motor vehicle registration and driv-
24       ers license laws;, and amendments thereto, but any such payments pro-
25       vided to be made shall not be a lien or claim on any of the sums now
26       provided by subsections (b)(1), (2) and (3) of K.S.A. 68-416, and amend-
27       ments thereto, and such payments shall be subject to any prior lien
28       thereon, if any, created by similar contract heretofore made and entered
29       into by and between the secretary and the Kansas turnpike authority:
30       Provided, however,, except that the secretary and the authority may de-
31       termine any priority as to lien and claim on said the fund as between any
32       such payments to the authority from said the fund on account of any
33       highway projects financed under the provisions of this act. The laws of
34       Kansas shall not be repealed or amended so as to cause the moneys avail-
35       able in the state highway fund for making any payments to the authority
36       provided to be made pursuant to the provisions of this section to be
37       insufficient to make any such payments.
38             The provisions of any contract or agreement entered into pursuant to
39       the provisions of this section may be enforced by the authority or by the
40       trustee under any trust agreement authorized by the provisions of K.S.A.
41       68-20,101 and amendments thereto.
42             Sec.  15. K.S.A. 68-2315 is hereby amended to read as follows: 68-
43       2315. Annually, prior to the 10th day of each regular session of the leg-

SB 99

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  1       islature, the secretary of transportation shall submit a written report to
  2       the governor and each member of the legislature providing:
  3             (a) Summary financial information and a statement of assurance that
  4       the department of transportation has prepared a comprehensive financial
  5       report of all funds for the preceding year which shall include includes a
  6       report by independent public accountants attesting that the financial
  7       statements present fairly the financial position of the Kansas department
  8       of transportation in conformity with generally accepted accounting prin-
  9       ciples and a notification that the complete comprehensive financial report,
10       including the auditor's report is available upon request;
11             (b) a detailed explanation of the methods or criteria employed to
12       select construction projects, including a definition of the program ele-
13       ments in subsections (a) and (b) of K.S.A. 68-2314 in the selection of
14       substantial maintenance and construction projects and in the awarding
15       of assistance to cities, counties or other transportation providers;
16             (c) the proposed allocation and expenditure of moneys and proposed
17       work plan for the current fiscal year and at least the next five years;
18             (d) information concerning construction work completed in the pre-
19       ceding fiscal year and construction work in progress;
20             (e) information concerning the operation and financial condition of
21       the transportation revolving fund;
22             (e) (f) specific recommendations for any statutory changes necessary
23       for the successful completion of the comprehensive transportation pro-
24       gram specified in section 1 orefficient and effective operation of the Kan-
25       sas department of transportation; and
26             (f) (g) an explanation of any material changes from the previous an-
27       nual report.
28             Sec.  16. K.S.A. 68-2316 is hereby amended to read as follows: 68-
29       2316. For the period beginning July 1, 1989 1999, through June 30, 1997
30       2007, the secretary of transportation shall expend or commit to expend,
31       from the revenue provided under the provisions of this act, at least
32       $2,500,000 $3,000,000 for highway, bridge and substantial maintenance
33       projects in each county of the state.
34             Sec.  17. K.S.A. 68-2320 is hereby amended to read as follows: 68-
35       2320. On and after July 1, 1991, The secretary of transportation is hereby
36       authorized and empowered to issue bonds of the state of Kansas, payable
37       solely from revenues accruing to the state highway fund and transferred
38       to the highway bond debt service fund and pledged to their payment, for
39       the purpose of providing funds to pay costs relating to construction, re-
40       construction, maintenance or improvement of highways in this state and
41       to pay all expenses incidental thereto and to the bonds. The secretary is
42       hereby authorized to issue bonds the total, except that the aggregate prin-
43       cipal amount of which bonds outstanding at any one time shall not exceed

SB 99

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  1       $890,000,000 $2,690,000,000. In accordance with procurement statutes,
  2       the secretary may contract with financial advisors, attorneys and such
  3       other professional services as the secretary deems necessary to carry out
  4       the provisions of this act, and to do all things necessary or convenient to
  5       carry out the powers expressly granted in this act.
  6             Sec.  18. K.S.A. 1998 Supp. 68-2321 is hereby amended to read as
  7       follows: 68-2321. (a) Bonds issued shall be authorized by resolution of
  8       the secretary. The secretary shall determine the form and manner of the
  9       execution of the bonds and the bonds may be made exchangeable for
10       bonds of another denomination or in another form. The bonds shall be
11       dated and shall mature not more than 20 25 years from their date. The
12       bonds may be in such form and denominations, may bear interest payable
13       at such times and at such rate or rates, may be payable at such places
14       within or without the state, may be subject to such terms of redemption
15       in advance of maturity at such prices, and may contain such terms and
16       conditions, all as the secretary shall determine. The bonds shall have all
17       the qualities of and shall be deemed to be negotiable instruments under
18       the laws of the state of Kansas. The authorizing resolution may contain
19       any other terms, covenants and conditions that the secretary deems rea-
20       sonable and desirable.
21             (b) The proceeds from the sale of the bonds authorized to be issued
22       under this section are deemed to be trust funds which shall be deposited
23       in the custody of the state treasurer in the highway bond proceeds fund
24       which is hereby created. The secretary shall have responsibility for the
25       management and control of the highway bond proceeds fund and shall
26       provide, by resolution, for both amounts and the duration of investments
27       of moneys in such fund. Such resolution may recommend investment and
28       reporting policies, including acceptable levels of return, risk and security.
29       After consultation with the secretary and subject to the terms, covenants
30       and conditions provided in the resolutions providing for the issuance of
31       such bonds, the director of investments shall have the authority to invest
32       and reinvest moneys in such fund and to acquire, retain, manage, includ-
33       ing the exercise of any voting rights, and dispose of investments of such
34       fund. In investing or reinvesting moneys in such fund, there shall be
35       exercised the judgment and care under the circumstances then prevailing
36       which persons of prudence, discretion and intelligence exercise in the
37       management of their own affairs, not in regard to speculation but in re-
38       gard to the permanent disposition of their funds, considering the probable
39       income as well as the probable safety of their capital, except that moneys
40       of the fund may not be invested in common stocks. Notwithstanding an-
41       ything to the contrary, all interest or other income of the investments,
42       after payment of any management fees, of the highway bond proceeds
43       fund shall be credited to the highway bond debt service fund, until pay-

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  1       ments on bonds authorized by this act and interest thereon has been fully
  2       funded. Thereafter, earnings and other income shall be credited to the
  3       state highway fund.
  4             (c) The authorizing resolution may provide for the execution of a trust
  5       indenture. The trust indenture may contain any terms, covenants and
  6       conditions that are deemed desirable by the secretary, including, without
  7       limitation, those pertaining to the maintenance of various funds and re-
  8       serves, the nature and extent of any security for payment of the bonds,
  9       the custody and application of the proceeds of the bonds, the collection
10       and disposition of bond proceeds and earnings thereon, the investing for
11       authorized purposes, and the rights, duties and obligations of the secre-
12       tary and the holders and registered owners of the bonds.
13             (d) Any authorizing resolution and trust indenture relating to the is-
14       suance and security of the bonds may set forth covenants, agreements
15       and obligations therein, which may be enforced by mandamus or other
16       appropriate proceeding at law or in equity.
17             (e) The bonds may be issued under the provisions of this act without
18       obtaining the consent of any department, division, commission, board,
19       bureau or agency of the state and without any other proceedings or the
20       happening of any other conditions or things than those proceedings, con-
21       ditions or things which are specifically required by this act.
22             Sec.  19. K.S.A. 68-2328 is hereby amended to read as follows: 68-
23       2328. (a) Bonds may be issued for the purpose of refunding, either at
24       maturity or in advance of maturity, any bonds issued under this act. Bonds
25       may be issued subsequent to the effective date of this act for the purpose
26       of refunding, either at maturity or in advance of maturity, bonds issued
27       under article 23 of chapter 68 of the Kansas Statutes Annotated, and
28       amendments thereto. Such refunding bonds may either be sold or deliv-
29       ered in exchange for the bonds being refunded. If sold, the proceeds may
30       either be applied to the payment of the bonds being refunded or depos-
31       ited in trust and there maintained in cash or investments for the retire-
32       ment of the bonds being refunded, as shall be specified by the secretary
33       and the authorizing resolution or trust indenture securing such refunding
34       bonds. The authorizing resolution or trust indenture securing the re-
35       funding bonds may provide that the refunding bonds shall have the same
36       security for their payment as provided for the bonds being refunded.
37       Refunding bonds shall be sold and secured in accordance with the pro-
38       visions of this act pertaining to the sale and security of the bonds. Any
39       The amount equal to the difference between the principal amount of the
40       refunding bonds that have been issued pursuant to this sectionand the
41       outstanding principal amount of the bonds that have been refunded, shall
42       not be counted toward the limit on the aggregate outstanding principal
43       amount of bonds established under K.S.A. 68-2320, and amendments

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  1       thereto.
  2             (b) When all bonds issued under article 23 of chapter 68 of the Kansas
  3       Statutes Annotated, and amendments thereto, have either been paid or
  4       the lien of such bonds shall have been defeased in accordance with their
  5       terms so that the bonds are deemed to have been paid, the secretary of
  6       transportation shall certify such facts to the director of accounts and re-
  7       ports and upon receipt of such certification the director of accounts and
  8       reports shall transfer all moneys in the state freeway fund to the state
  9       highway fund and upon such transfer all liabilities of the state freeway
10       fund are hereby transferred to and imposed upon the state highway fund
11       and the state freeway fund is hereby abolished. Upon the abolition of the
12       state freeway fund, any reference to the state freeway fund or any des-
13       ignation thereof, in any statute, contract or other document shall mean
14       the state highway fund.
15             Sec.  20. K.S.A. 75-5032 is hereby amended to read as follows: 75-
16       5032. This act shall be known and may be cited as the Kansas elderly and
17       disabled coordinated public transportation assistance act.
18             Sec.  21. K.S.A. 75-5033 is hereby amended to read as follows: 75-
19       5033. It is declared to be the purpose of this act to provide financial and
20       administrative assistance to transportation systems which provide coor-
21       dinated transportation services to the elderly and disabled elderly persons,
22       persons with disabilities and the general public.
23             Sec.  22. K.S.A. 75-5034 is hereby amended to read as follows: 75-
24       5034. When used in this act:
25             (a) "Transportation system" means all public and private transporta-
26       tion providers which provide public transportation services to the elderly
27       and disabled elderly persons, persons with disabilities and the general
28       public, and which receive federal support through section 9, section 16
29       or section 18 49 U.S.C. §  5307, 5310 or 5311 from the U.S. department
30       of transportation, urban mass transportation federal transit
31       administration.
32             (b) "Transportation" means the movement of individuals and meals
33       in a four or more wheeled motorized vehicle designed to carry passengers.
34       Transportation does not include emergency or school transportation.
35             (c) "Coordination" means where programmatically feasible, all enti-
36       ties involved in administrating and/or providing transportation and related
37       services to the elderly, disabled, elderly persons, persons with disabilities
38       and the general public will work together in a smooth, concerted effort
39       to effectively use resources and alleviate duplication of services.
40             (d) "Elderly" "Elderly persons" means those persons 60 years of age
41       or older.
42             (e) "Disabled" "Persons with disabilities" means those persons de-
43       termined by the department of transportation to be disadvantaged in

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  1       terms of the transportation services available to them due to physical or
  2       mental disability.
  3             (f) "Public transportation services" means those services accessible to
  4       the general public elderly and disabled community elderly persons, per-
  5       sons with disabilities and the general public.
  6             (g) "Department" means the Kansas department of transportation.
  7             (h) "Secretary" means the secretary of the department of transpor-
  8       tation or designee.
  9             Sec.  23. K.S.A. 75-5035 is hereby amended to read as follows: 75-
10       5035. (a) There is hereby established in the state treasury the elderly and
11       disabled coordinated public transportation assistance fund. Any expend-
12       itures from the fund shall be for the coordinated development, improve-
13       ment or maintenance of transportation systems for elderly or disabled
14       persons persons, persons with disabilities or the general public under this
15       act and shall be made in accordance with appropriation acts upon war-
16       rants of the director of accounts and reports issued pursuant to vouchers
17       approved by the secretary or by a person designated by the secretary.
18             (b) On July 1, 1994 1999, and each July 1 thereafter, the director of
19       accounts and reports shall transfer $1,000,000 $5,000,000 from the state
20       highway fund to the elderly and disabled coordinated public transporta-
21       tion assistance fund.
22             Sec.  24. K.S.A. 75-5037 is hereby amended to read as follows: 75-
23       5037. (a) The secretary shall administer and allocate funds appropriated
24       under this act for the purpose of providing financial and administrative
25       assistance to transportation systems.
26             (b) The secretary shall determine the eligibility of each applicant.
27             The following criteria shall be used in determining eligibility:
28             (1) Whether the proposal serves the transportation needs of the eld-
29       erly and disabled citizens elderly persons, persons with disabilities and
30       the general public of the proposed service area;
31             (2) whether resources for transportation services are utilized in an
32       effective and efficient manner;
33             (3) whether duplicative and inefficient administrative costs and trans-
34       portation services are avoided.
35             (c) No more than 1% of the funds provided under this act shall be
36       expended for administrative purposes.
37             Sec.  25. K.S.A. 75-5046 is hereby amended to read as follows: 75-
38       5046. (a) Subject to the provisions of subsection (f), the secretary of trans-
39       portation is hereby authorized upon application by a qualified entity and
40       its lender to enter into an agreement to guarantee the repayment of loans
41       made for the purpose of facilitating the financing, acquisition or rehabil-
42       itation of railroads in the state of Kansas.
43             (b) Such agreement may contain such terms and conditions as the

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  1       secretary of transportation may deem appropriate to carry out the pur-
  2       poses of this section, except that the aggregate unpaid principal amount
  3       of obligations guaranteed thereby shall not exceed $20,000,000 of which
  4       not more than $5,000,000 may be available each fiscal year. Any loan
  5       guaranteed by the secretary of transportation pursuant to this section, at
  6       a minimum, shall meet the following requirements:
  7             (1) The ratio of benefits to costs for any project funded by such guar-
  8       anteed loan shall be greater than one. The benefit/cost methodology to
  9       be used for this determination shall be the most recent standard benefit/
10       cost methodology approved by the federal railroad administration of the
11       United States department of transportation;
12             (2) the qualified entity shall demonstrate that it is financially sound
13       and capable of fulfilling all obligations created by the proposed loan guar-
14       antee agreement; and
15             (3) the qualified entity shall demonstrate that adequate funding for
16       the proposed project is not otherwise available, on terms that would make
17       the proposed project financially feasible, in the absence of a state loan
18       guarantee.
19             (c) Prior to any loan being guaranteed under the provisions of this
20       section, the secretary of transportation shall make a determination as to
21       whether the guaranteeing of such loan would adversely affect the rating
22       of any bonds issued pursuant to K.S.A. 68-2314 et seq., and amendments
23       thereto and outstanding or authorized to be issued. If the guaranteeing
24       of such loan would adversely affect the rating of such bonds, the secretary
25       of transportation shall not guarantee such loan. Such determination shall
26       be documented in writing by the secretary of transportation.
27             (d) The secretary of transportation may adopt rules and regulations
28       consistent with and for the purpose of implementing the provisions of
29       this section, including the priorities contained in subsection (a) of K.S.A.
30       75-4045, and amendments thereto.
31             (e) "Qualified entity" means any interstate commerce commission
32       certificated railroad, a port authority established in accordance with Kan-
33       sas laws, or any entity meeting the rules and regulations established by
34       this section.
35             (f) The secretary of transportation shall not enter into any agreement
36       to guarantee a loan under the provisions of this section unless such action
37       has been authorized by act of the legislature or has been approved by the
38       state finance council acting on this matter which is hereby characterized
39       as a matter of legislative delegation and subject to the guidelines pre-
40       scribed by subsection (c) of K.S.A. 75-3711c and amendments thereto,
41       except that such approval may also be given when the legislature is in
42       session.
43             Sec.  26. K.S.A. 75-5048 is hereby amended to read as follows: 75-

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  1       5048. (a) The secretary of transportation is hereby authorized to make
  2       loans or grants to a qualified entity for the purpose of facilitating the
  3       financing, acquisition or rehabilitation of railroads in the state of Kansas.
  4             (b) Such loans or grants shall be made upon such terms and condi-
  5       tions as the secretary of transportation may deem appropriate, and such
  6       loans or grants shall be made from funds credited to the rail service
  7       improvement fund.
  8             (c) The rail service improvement fund is hereby established in the
  9       state treasury which shall be for the purpose of facilitating the financing,
10       acquisition and rehabilitation of railroads pursuant to subsection (a) of
11       this section and for the refinancing thereof. The secretary of transporta-
12       tion shall administer the rail service improvement fund. All expenditures
13       from the rail service improvement fund shall be made in accordance with
14       appropriation acts upon warrants of the director of accounts and reports
15       issued pursuant to vouchers approved by the secretary of transportation
16       or by a person or persons designated by the secretary.
17             (d) All moneys received from the federal government under the local
18       rail freight assistance program (49 U.S.C. 1654) shall be remitted to the
19       state treasurer. Upon receipt of each such remittance, the state treasurer
20       shall deposit the entire amount in the state treasury to the credit of the
21       rail service improvement fund.
22             (e) The management and investment of the rail service improvement
23       fund shall be in accordance with K.S.A. 68-2324, and amendments
24       thereto. Notwithstanding anything to the contrary, all interest or other
25       income of the investments, after payment of any management fees, shall
26       be considered income of the rail service improvement fund.
27             (f)  (1) On July 1, 1999, and each July 1 thereafter, the director of
28       accounts and reports shall transfer $3,000,000 from the state highway
29       fund to the rail service improvement fund.
30             (2) The provisions of this subsection shall expire on June 30, 2007.
31             (e) (g) "Qualified entity" means any interstate commerce commission
32       certificated railroad, a port authority established in accordance with Kan-
33       sas laws, or any entity meeting the rules and regulations established by
34       K.S.A. 75-5050, and amendments thereto.
35             Sec.  27. K.S.A. 75-5053 is hereby amended to read as follows: 75-
36       5053. When used in this act:
37             (a) "Transportation" means the movement of individuals in a four or
38       more-wheeled motorized vehicle designed to carry passengers. Trans-
39       portation does not include emergency or school transportation.
40             (b) "Nonurbanized area" designates any city or county with a popu-
41       lation of less than 50,000 population.
42             (c) "Rural transportation system" means all public and private trans-
43       portation agencies which provide transportation services in nonurbanized

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  1       portions of the state and which receive federal support through 49
  2       U.S.C.§  5310, 49 U.S.C. §  5311 from the United States department of
  3       transportation, federal transit administration, or from the Kansas elderly
  4       and disabled coordinated public transportation assistance act, or from
  5       both.
  6             (d) "Specialized transportation system" means all public and private
  7       transportation agencies which provide transportation services to elderly
  8       or disabled passengers persons or persons with disabilities and which
  9       receive federal support through 49 U.S.C. §  5310 from the United States
10       department of transportation, federal transit administration, or the Kansas
11       elderly and disabled coordinated public transportation assistance act, or
12       from both.
13             (e) "Coordinated transit district" means a public or private not-for-
14       profit agency with an established purpose to distribute funds and monitor
15       implementation of passenger transportation services in a designated area
16       of the state.
17             (f) "Administrator" means the agency selected to receive funds from
18       the department for provision of transportation services in the designated
19       area.
20             (g) "Elderly" "Elderly person" means those persons 60 years of age
21       or older.
22             (h) "Disabled" "Persons with disabilities" means those persons de-
23       termined by the department of transportation to be disadvantaged in
24       terms of the transportation services available to them due to physical or
25       mental disability.
26             (i) "Coordination" means where programmatically feasible, all enti-
27       ties involved in administrating or providing transportation and related
28       services to the elderly, disabled elderly persons, persons with disabilities
29       and the general public will work together in a smooth, concerted effort
30       to effectively use resources and alleviate duplication of services.
31             (j) "Department" means the Kansas department of transportation.
32             (k) "Secretary" means the secretary of the department of
33       transportation.
34             Sec.  28. K.S.A. 75-5056 is hereby amended to read as follows: 75-
35       5056. (a) The secretary shall establish coordinated transit districts for the
36       purpose of providing financial and administrative assistance to transpor-
37       tation systems.
38             (b) The secretary shall determine the eligibility of each agency to
39       serve as coordinated transit district administrator. The following criteria
40       shall be used in determining eligibility:
41             (1) Whether the proposal serves the transportation needs of the eld-
42       erly, disabled elderly persons, persons with disabilities and the general
43       public citizens of the proposed district;

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  1             (2) whether resources for transportation services are utilized in an
  2       effective and efficient manner; and
  3             (3) whether the proposal is consistent with the statewide coordinated
  4       transit district plan.
  5             (c) The secretary shall administer and allocate funds to qualified co-
  6       ordinated transit district administrators, consistent with the statewide co-
  7       ordinated transit district plan.
  8             Sec.  29. K.S.A. 75-5061 is hereby amended to read as follows: 75-
  9       5061. (a) The secretary of transportation is hereby authorized and em-
10       powered to: (1) Solicit and receive moneys from any public or private
11       sources; and (2) establish and administer a grant program for public use
12       general aviation airports for the purpose of planning, constructing, re-
13       constructing or rehabilitating the facilities of such public use general avi-
14       ation airports.
15             (b) Such grants shall be made upon such terms and conditions as the
16       secretary of transportation deems appropriate, and such grants shall be
17       made from funds credited to the public use general aviation airport de-
18       velopment fund.
19             (c) The public use general aviation airport development fund is
20       hereby established in the state treasury which shall be for the purpose of
21       planning, constructing, reconstructing or rehabilitating the facilities of
22       public use general aviation airports pursuant to subsection (a) of this sec-
23       tion. All moneys received pursuant to subsection (a) shall be remitted to
24       the state treasurer at least monthly and deposited in the state treasury to
25       the credit of the public use general aviation airport development fund.
26       The secretary of transportation shall administer the public use general
27       aviation airport development fund. All expenditures from the public use
28       general aviation airport development fund shall be made in accordance
29       with appropriation acts upon warrants of the director of accounts and
30       reports issued pursuant to vouchers approved by the secretary of trans-
31       portation or by a person or persons designated by the secretary.
32             (d) On July 1, 1999, and each July 1 thereafter, the director of ac-
33       counts and reports shall transfer $3,000,000 from the state highway fund
34       to the public use general aviation airport development fund.
35             (d) (e) As used in this section "public use general aviation airport"
36       means any airport available for use by the general public for the landing
37       and taking off of aircraft, but shall not include any airport classified as a
38       primary airport by the federal aviation administration.
39             (e) (f) The secretary of transportation may adopt rules and regulations
40       for the purpose of implementing the provisions of this section.
41             Sec.  30. K.S.A. 79-3425 is hereby amended to read as follows: 79-
42       3425. (a) All of the amounts collected under the motor-fuel tax law and
43       amendments thereto, except amounts collected pursuant to K.S.A. 79-

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  1       3408c, and amendments thereto, shall be remitted by the director to the
  2       state treasurer daily, and the state treasurer shall deposit all such amounts
  3       in the state treasury. The state treasurer shall credit such amount thereof
  4       as the director shall order in the motor-vehicle fuel tax refund fund to be
  5       used for the purpose of paying motor-vehicle fuel tax refunds as provided
  6       by law. The state treasurer shall credit the remainder of such amounts as
  7       follows: To the state freeway fund which highway fund is hereby created,
  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, to a special city and county highway fund which is hereby created,
11       amounts specified in K.S.A. 79-34,142, and amendments thereto, to be
12       apportioned and distributed in the manner provided in K.S.A. 79-3425c,
13       and amendments thereto, and to the Kansas qualified agricultural ethyl
14       alcohol producer incentive fund, which is hereby created in the state
15       treasury, in the amount and in the manner specified in K.S.A. 79-34,161,
16       and amendments thereto, to be expended in the manner provided in
17       K.S.A. 79-34,162, and amendments thereto.
18             (b) On each day, after the state treasurer has received certification
19       from the secretary of transportation that provisions have been made for
20       the payment of the pro rata share of the amount required to be paid on
21       the next ensuing payment date of either the principal of or the interest
22       on the outstanding highway bonds issued pursuant to K.S.A. 68-2304 and
23       amendments thereto, the state treasurer shall transfer from the state free-
24       way fund to the state highway fund an amount specified in K.S.A. 79-
25       34,143, and amendments thereto.
26             Sec.  31. K.S.A. 79-3425c is hereby amended to read as follows: 79-
27       3425c. (a) On January 15, April 15, July 15 and October 15 of each year,
28       the director of accounts and reports shall transfer $625,000 to the county
29       equalization and adjustment fund from the special city and county high-
30       way fund and on such dates the state treasurer shall apportion and pay
31       to the several counties of the state 57% of the moneys in the special city
32       and county highway fund, created by K.S.A. 79-3425, and amendments
33       thereto, and shall apportion and pay to the several cities of the state the
34       remaining 43% of such moneys.
35             (b)  \ fs\ (1) Except as provided in paragraph (2) of this subsection, The
36       allocation and payment to each county under the provisions of this section
37       shall be made in the following manner:
38             First, Each county of the state shall receive a payment of $5,000;
39             Second, Of the balance remaining, 50% 44.06% thereof shall be ap-
40       portioned and paid to each county on January 15 and April 15 of each
41       year in the proportion that the total amount of money collected in such
42       county from motor vehicle registration fees for the second preceding
43       calendar year bears to the total amount of money collected in all counties

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  1       from motor vehicle registration fees for the second preceding calendar
  2       year, and on July 15 and October 15 of each year in the proportion that
  3       the total amount of money collected in such county from motor vehicle
  4       registration fees for the preceding calendar year bears to the total amount
  5       of money collected in all counties from motor vehicle registration fees
  6       for the preceding calendar year;
  7             Third, The remaining 50% 44.06% of such balance shall be apportioned
  8       and paid to each county on January 15 and April 15 of each year in the
  9       proportion that the average daily vehicle miles traveled in such county
10       for the second preceding calendar year bears to the average daily vehicle
11       miles traveled in all counties of the state for the second preceding cal-
12       endar year, and on July 15 and October 15 of each year in the proportion
13       that the average daily vehicle miles traveled in such county for the pre-
14       ceding calendar year bears to the average daily vehicle miles traveled in
15       all counties of the state for the preceding calendar year; and
16             (2) the allocation and payment to each county of the new revenue
17       provided under the provisions of this act to the special city and county
18       highway fund shall be made in the following manner:
19             First, 331/3% of such revenue shall be apportioned and paid in accord-
20       ance with the provisions of Second of subsection (b)(1);
21             Second, 331/3% of such revenue shall be apportioned and paid in ac-
22       cordance with the provisions of Third of subsection (b)(1);
23             Third Fourth, the remaining 331/3% 11.88% of such balance shall be
24       apportioned and paid to each county on January 15 and April 15 of each
25       year in the proportion that the total road miles in such county for the
26       second preceding calendar year bears to the total road miles in all counties
27       of the state for the second preceding calendar year; and on July 15 and
28       October 15 of each year in the proportion that the total road miles in
29       such county for the preceding calendar year bears to the total road miles
30       in all counties of the state for the preceding calendar year.
31             If the total amount of money received by any county pursuant to the
32       foregoing distribution formula and by all cities located within such county
33       pursuant to subsection (c) of this section during the period from July 15
34       of any year to April 15 of the next succeeding year is less than the total
35       amount received by such county and all cities located within such county
36       from the county road and city street fund, the special city and county
37       highway fund, the county and township road fund and the special motor
38       carrier fee county road fund during the period from July 1, 1969, to June
39       30, 1970, plus the total amount such county and all cities located within
40       such county would have received on July 15, 1970, from the special city
41       and county highway fund based on the formula for distributing such fund
42       in effect on June 30, 1970, then on April 15 of each year from the special
43       city and county highway fund and the county equalization and adjustment

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  1       fund for fiscal year 1999, the state treasurer shall apportion and pay to
  2       each such county from the county equalization and adjustment fund an
  3       amount which together with the amount received pursuant to the fore-
  4       going distribution formula will equal the total amount received from the
  5       four two aforementioned funds during such period of time plus the total
  6       amount such county and all cities located within such county would have
  7       received on July 15, 1970, from the special city and county highway fund
  8       based on the formula for distributing such fund in effect on June 30,
  9       1970. In the event that there is insufficient funds in the county equali-
10       zation and adjustment fund to pay each county the amount to which it is
11       entitled, each county shall receive a payment in the proportion that the
12       amount to which such county is entitled bears to the amount to which all
13       such counties are entitled. If there is money remaining in such fund after
14       such distribution, the state treasurer shall distribute the balance to the
15       several counties in the manner provided in the second and third clauses
16       of the foregoing formula for distributing moneys to counties from the
17       special city and county highway fund.
18             All payments shall be made to the county treasurers of the respective
19       counties, and upon receipt of the same:
20             (1) The county treasurers of Sedgwick and Shawnee counties shall
21       credit 50% of the moneys received to the road and bridge fund of such
22       counties and apportion and pay the remainder of such moneys to the
23       several cities located in such counties;
24             (2) the county treasurer of Wyandotte county shall credit 10% of the
25       moneys received to the road and bridge fund of such county and appor-
26       tion and pay the remainder of such moneys to the several cities located
27       in such county;
28             (3) the county treasurers of Lyon, Cowley, Crawford, Montgomery,
29       Butler, Saline, Leavenworth, Riley, Reno and Douglas counties shall
30       credit 90% of the moneys so received to the road and bridge fund of such
31       counties and apportion and pay the remainder of such moneys to the
32       several cities located in such counties except that no persons residing
33       within the Fort Riley military reservation shall be included or considered
34       in determining the population of any city located within Geary or Riley
35       county; and
36             (4) the county treasurers of Johnson county and all other counties not
37       listed in paragraphs (1), (2) or (3) shall credit all of the moneys received
38       to the road and bridge fund of such counties.
39             Not less than 25% of the amount received by each county and credited
40       to the county road and bridge fund under the provisions of this section
41       shall be expended by the county on mail and school bus routes on county
42       roads as defined in K.S.A. 68-101, and amendments thereto. Payments
43       to the cities under the provisions of this subsection shall be in the pro-

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  1       portion that the population of each city bears to the total population of
  2       all cities located in the same county as such city.
  3             In counties which have not adopted the county-unit road system, the
  4       amount of money retained by such counties after distribution to the cities
  5       within such county pursuant to this subsection shall be distributed to each
  6       township within such county in not less than the proportion that the
  7       amount of money received by each township from the county and town-
  8       ship road fund during the period from July 1, 1969, to June 30, 1970,
  9       bears to the total amount of money received by such county from the
10       county and township road fund, the county road and city street funds,
11       the special motor carrier fee county road fund and the special city and
12       county highway fund during the period from July 1, 1969, to June 30,
13       1970, plus the amount such county would have received on July 15, 1970,
14       from the special city and county highway fund based on the formula for
15       distributing such fund in effect on June 30, 1970. All payments to town-
16       ships hereunder shall be made to the treasurers thereof, and all moneys
17       so received shall be deposited in the general road fund of such township.
18             (c) The allocation and payment of moneys to the several cities of the
19       state from the special city and county highway fund shall be in the pro-
20       portion that the population of each city bears to the total population of
21       all cities in the state except that the population of any military reservation
22       which has been annexed to a city after the date of December 31, 1981,
23       shall not be included in the population of such city for the purpose of this
24       allocation. All such payments shall be to the city treasurers of the re-
25       spective cities. Upon receipt of same unless a consolidated street and
26       highway fund is established pursuant to K.S.A. 12-1,119, and amend-
27       ments thereto, the city treasurer of each city shall credit the same to a
28       separate fund to be used for the construction, reconstruction, alteration,
29       repair and maintenance of the streets and highways of such city and for
30       the payment of bonds, and interest thereon, issued pursuant to K.S.A.
31       79-3425g, and amendments thereto. In order to reduce vehicular traffic
32       and congestion on its streets and highways, any city located within John-
33       son county may use not to exceed 10% of the moneys credited to such
34       fund for the purpose of constructing, repairing and maintaining footpaths
35       and bicycle trails within such city.
36             (d) For the purposes of this section, the average daily vehicle miles
37       traveled in each county shall be determined by the secretary of transpor-
38       tation, but it shall not include miles traveled on interstate highways, and
39       the population of each city shall be reported in the annual enumeration
40       by the state board of agriculture for the preceding calendar year.
41             (e) In order to reduce vehicular traffic and congestion on its streets
42       and highways, the board of county commissioners of any county, the
43       governing body of any city or the township board of any township may

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  1       use for the purpose of constructing, repairing and maintaining footpaths
  2       and bicycle paths not to exceed 10% of the moneys such government
  3       receives under K.S.A. 79-3425c, and amendments thereto, except that such
  4       limitation shall not apply to moneys received by a county that the county
  5       is required to distribute to a city or a township.
  6             Sec.  32. K.S.A. 79-34,104 is hereby amended to read as follows: 79-
  7       34,104.(a) All amounts collected under the liquefied petroleum motor-
  8       fuel tax law, except amounts collected pursuant to K.S.A. 79-3491a, and
  9       amendments thereto, shall be remitted by the director to the state trea-
10       surer daily, and the state treasurer shall deposit the same in the state
11       treasury. The state treasurer shall credit such amounts as follows: To the
12       state freeway highway fund amounts specified in K.S.A. 79-34,142, and
13       amendments thereto, to be expended in the manner provided in K.S.A.
14       68-2301, and amendments thereto, and amounts specified in K.S.A. 79-
15       34,142, and amendments thereto, to a special city and county highway
16       fund to be apportioned and distributed in the manner provided in K.S.A.
17       79-3425c, and amendments thereto.
18             (b) On each day after the state treasurer has received certification
19       from the secretary of transportation that provisions have been made for
20       the payment of the pro rata share of the amount required to be paid on
21       the next ensuing payment date of either principal and interest or interest
22       on the outstanding highway bonds issued pursuant to K.S.A. 68-2304, and
23       amendments thereto, the state treasurer shall transfer from the state free-
24       way fund to the state highway fund an amount specified in K.S.A. 79-
25       34,143, and amendments thereto.
26             Sec.  33. K.S.A. 79-34,126 is hereby amended to read as follows: 79-
27       34,126. (a) All amounts collected under the interstate motor fuel use act
28       shall be remitted by the director to the state treasurer daily, and the state
29       treasurer shall deposit the same in the state treasury. The state treasurer
30       shall credit such amounts as follows: To the state freeway highway fund
31       amounts specified in K.S.A. 79-34,142, and amendments thereto, to be
32       expended in the manner provided in K.S.A. 68-2301, and amendments
33       thereto, and amounts specified in K.S.A. 79-34,142, and amendments
34       thereto, to a special city and county highway fund to be apportioned and
35       distributed in the manner provided in K.S.A. 79-3425c, and amendments
36       thereto.
37             (b) On each day after the state treasurer has received certification
38       from the secretary of transportation that provisions have been made for
39       the payment of the pro rata share of the amount required to be paid on
40       the next ensuing payment date of either principal and interest or interest
41       on the outstanding highway bonds issued pursuant to K.S.A. 68-2304, and
42       amendments thereto, the state treasurer shall transfer from the state free-
43       way fund to the state highway fund an amount prescribed by K.S.A. 79-

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  1       34,143, and amendments thereto.
  2             (c) (b) All amounts collected under the international fuel tax agree-
  3       ment shall be remitted by the director to the state treasurer daily. The
  4       state treasurer shall deposit the entire amount in the state treasury and
  5       credit such amount to the international fuel tax agreement clearing fund
  6       which is hereby created. Payments due and owing to member jurisdic-
  7       tions under the international fuel tax agreement and refunds for over-
  8       payment of tax shall be made from such fund. The director shall reconcile
  9       such clearing fund monthly with balances remitted monthly in accordance
10       with the provisions of subsection (a). The funds in the international fuel
11       tax agreement clearing fund shall be invested in the same manner as
12       provided in K.S.A. 68-2324, and amendments thereto, and all earnings
13       shall be deposited in the state treasury and credited to the state highway
14       fund.
15             Sec.  34. K.S.A. 79-34,142 is hereby amended to read as follows: 79-
16       34,142. On and after August 1, 1989, The state treasurer shall credit
17       amounts received pursuant to K.S.A. 79-3408, 79-3408c, 79-3491a, 79-
18       3492 and 79-34,118 and amendments thereto as follows: To the state
19       freeway highway fund 59.5% 55.3% and to the special city and county
20       highway fund 40.5% 44.7%.
21             Sec.  35. K.S.A. 1998 Supp. 79-34,147 is hereby amended to read as
22       follows: 79-34,147. (a) (1) On each January 1, April 1, July 1 and October
23       1 July 1, 1999, October 1, 1999, January 1, 2000 and April 1, 2000, the
24       secretary of revenue shall certify to the director of accounts and reports
25       the amount equal to 7.628% 9% of the total revenues received by the
26       secretary from the taxes imposed under the Kansas retailers' sales tax act
27       and deposited in the state treasury and credited to the state general fund
28       during the preceding three calendar months.
29             (2) On July 1, 2000, and quarterly thereafter, the secretary of revenue
30       shall certify to the director of accounts and reports the amount equal to
31       10% of the total revenues received by the secretary from the taxes imposed
32       under the Kansas retailers' sales tax act and deposited in the state treasury
33       and credited to the state general fund during the preceding three calendar
34       months.
35             (b) Upon receipt of each certification under subsection (a), the di-
36       rector of accounts and reports shall transfer from the state general fund
37       to the state highway fund an amount equal to the amount so certified, on
38       each January 1, April 1, July 1 and October 1, except that the amount of
39       the transfer on each such date during state fiscal year 1999 shall not
40       exceed the amount equal to 102.4% of the amount transferred on the
41       same date during state fiscal year 1998. All transfers made pursuant to
42       this section are subject to reduction under K.S.A. 75-6704, and amend-
43       ments thereto.

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  1             (c) All transfers made in accordance with the provisions of this section
  2       shall be considered to be demand transfers from the state general fund.
  3             Sec.  36. K.S.A. 79-34,161 is hereby amended to read as follows: 79-
  4       34,161. On October 1, 1987, and quarterly thereafter, the state treasurer
  5       shall credit $625,000 from the amounts remaining after the state treasurer
  6       credits an amount to the motor vehicle fuel tax refund fund as provided
  7       in subsection (a) of K.S.A. 79-3425, and amendments thereto, in the Kan-
  8       sas qualified agricultural ethyl alcohol producer incentive fund.
  9             Sec.  37. K.S.A. 79-34,162 is hereby amended to read as follows: 79-
10       34,162. (a) All moneys in the Kansas qualified agricultural ethyl alcohol
11       producer incentive fund shall be expended by the secretary of the de-
12       partment of revenue for the payment of producer incentives for the pro-
13       duction of agricultural ethyl alcohol under the provisions of this act.
14             (b) All moneys remaining in the Kansas qualified agricultural ethyl
15       alcohol producer incentive fund upon the expiration of this act shall be
16       credited by the state treasurer in the manner provided by subsection (a)
17       of K.S.A. 79-3425, and amendments thereto. 
18       Sec.  38. K.S.A. 12-1,119, 66-231a, 66-231b, 68-402e, 68-417, 68-
19       417a, 68-417b, 68-2033, 68-2073, 68-2096, 68-2315, 68-2316, 68-2318,
20       68-2320, 68-2328, 75-5032, 75-5033, 75-5034, 75-5035, 75-5037, 75-
21       5046, 75-5048, 75-5053, 75-5056, 75-5061, 79-3425, 79-3425c, 79-3425d,
22       79-34,104, 79-34,126, 79-34,142, 79-34,143, 79-34,161 and 79-34,162 and
23       K.S.A. 1998 Supp. 12-187, 68-416, 68-2314, 68-2321 and 79-34,147 are
24       hereby repealed.
25        Sec.  39. This act shall take effect and be in force from and after its
26       publication in the statute book.