As Amended by House Committee
Session of 2000
HOUSE BILL No. 3011
By Committee on Appropriations
3-2
11 AN ACT
concerning the Kansas investments in major projects and com-
12 prehensive training
act; amending K.S.A. 1999 Supp. 74-50,103, 74-
13 50,104, 74-50,106 and
74-50,111 and repealing the existing sections.
14
15 Be it enacted by the Legislature of the
State of Kansas:
16 Section
1. K.S.A. 1999 Supp. 74-50,103 is hereby amended to read
17 as follows: 74-50,103. As used in the
IMPACT act unless the context
18 clearly requires otherwise:
19 (a) ``Act'' means
the Kansas investments in major projects and com-
20 prehensive training act.
21 (b) ``Agreement''
means the agreement among an employer, an ed-
22 ucational institution and the secretary of
commerce and housing con-
23 cerning a SKILL project or a combined SKILL
project and major project
24 investment and the agreement between an
employer and the secretary of
25 commerce and housing concerning a major
project investment.
26 (c) ``Bond''
means a public purpose bond issued for IMPACT projects
27 by the Kansas development finance
authority.
28 (d) ``Date of
commencement of the project'' means the date of the
29 agreement.
30 (e) ``Educational
institution'' means a community college, as defined
31 by K.S.A. 71-701 and amendments thereto, an
area vocational school or
32 area vocational-technical school, as
defined by K.S.A. 72-4412 and
33 amendments thereto, a university, as
defined by K.S.A. 72-6501 and
34 amendments thereto, or a state educational
institution, as defined by
35 K.S.A. 76-711 and amendments thereto.
36 (f) ``Employee''
means a person employed in a new or retained job.
37 (g) ``Employer''
means a Kansas basic enterprise providing new jobs
38 or retaining existing jobs in
conjunction with a project.
39 (h) ``IMPACT
program'' or ``program'' means the major project in-
40 vestments and SKILL projects undertaken
by the department of com-
41 merce and housing in accordance with the
provisions of this act for a new
42 or expanding Kansas basic
enterprise.
43 (h)
(i) ``IMPACT project'' or ``project'' means a SKILL
project, major
2
1 project investment or a combination
of the two.
2
(i) (j) ``Kansas basic enterprise''
means any enterprise:
3 (1) Which
is located or principally based in Kansas; and
4 (2) which
can provide demonstrable evidence that:
5 (A) It is
primarily engaged in any one or more of the Kansas basic
6 industries; or
7 (B) it is
primarily engaged in the development or production of goods
8 or the provision of services for
out-of-state sale; or
9 (C) it is
primarily engaged in the production of goods or the provision
10 of services which will attract out-of-state
buyers or consumers into the
11 state; or
12 (D) it is
primarily engaged in the production of raw materials, ingre-
13 dients, or components for other enterprises
which export the majority of
14 their products from the state; or
15 (E) it is a
national or regional enterprise which is primarily engaged
16 in interstate commerce or an affiliated
management company of such an
17 enterprise; or
18 (F) it is
primarily engaged in the production of goods or the provision
19 of services which will supplant goods or
services which would be imported
20 into the state; or
21 (G) it is the
corporate or regional headquarters of a multistate enter-
22 prise which is primarily engaged in
out-of-state industrial activities.
23 (j)
(k) ``Kansas basic industry'' means:
24
(1) Agriculture;
25 (2) mining;
26
(3) manufacturing;
27 (4) interstate
transportation;
28 (5) wholesale
trade which is primarily multistate in activity or which
29 has a major import supplanting effect
within the state;
30 (6) financial
services which are provided primarily for interstate or
31 international transactions;
32 (7) business
services which are provided primarily in out-of-state
33 markets;
34 (8) research and
development of new products, processes, or tech-
35 nologies; or
36 (9) tourism
activities which are primarily engaged in for the purpose
37 of attracting out-of-state tourists.
38 (k)
(l) ``Major project investment'' or ``investment''
means financial
39 assistance to an employer to defray
business costs including, but not lim-
40 ited to, relocation expenses, building and
equipment purchases, labor
41 recruitment and job retention.
42 (m) ``New
job'' means a job in a new or expanding Kansas basic en-
43 terprise not including jobs of recalled
workers, or existing jobs that are
3
1 vacant or other jobs that formerly
existed in the Kansas basic enterprise
2 in Kansas.
3
(l) (n) ``Primarily engaged'' means
engagement in an activity by an
4 enterprise to the extent that not
less than 51% of the gross income of the
5 enterprise is derived from such
engagement.
6
(m) ``New job'' means a job in a new or expanding
Kansas basic en-
7 terprise not including jobs
of recalled workers, or existing jobs that are
8 vacant or other jobs that
formerly existed in the Kansas basic enterprise
9 in Kansas.
10
(n) ``IMPACT program'' or ``program'' means the major project
in-
11 vestments and SKILL projects
undertaken by the department of com-
12 merce and housing in accordance
with the provisions of this act for a new
13 or expanding Kansas basic
enterprise.
14 (o) ``Program
costs'' means all necessary and incidental costs of pro-
15 viding program services, except that
program costs shall not include: (1)
16 Any wages paid to persons receiving
education or training under a project,
17 (2) any costs for purchase or lease of
training equipment that exceed 50%
18 of total program costs for the project, and
(3) any costs for administrative
19 expenses of educational institutions that
exceed 10% of total program
20 costs for the project.
21 (p) ``Program
services'' means:
22 (1) New jobs
training, including training development costs, except
23 that the actual training period for any new
job shall not exceed 36 months
24 from the date the job is first filled by an
employee;
25 (2) adult basic
education and job-related instruction;
26 (3) vocational
and skill-assessment services and testing;
27 (4) training
equipment for education institutions;
28 (5) material and
supplies;
29
(6) administrative expenses of educational institutions for
new jobs
30 training programs;
31 (7) subcontracted
services with other educational institutions, private
32 colleges or universities or other federal,
state or local agencies; and
33 (8) contracted or
professional service;
34 (9) major project
investments.
35 (q) ``Retained
job'' means a job in an existing or
expending expanding
36 Kansas basic enterprise.
37 (q)
(r) ``SKILL project'' means a training arrangement
which is the
38 subject of an agreement entered into
between the educational institution
39 and an employer to provide program
services.
40 Sec.
2. K.S.A. 1999 Supp. 74-50,104 is hereby amended to read
as
41 follows: 74-50,104. (a) The secretary of
commerce and housing shall ad-
42 minister the provisions of this act and the
IMPACT program established
43 thereunder. The secretary of commerce and
housing shall encourage
4
1 Kansas basic enterprises with similar
training needs to cooperate in es-
2 tablishing SKILL projects. The
secretary of commerce and housing shall
3 coordinate the SKILL program with
other job training programs admin-
4 istered by the department of commerce
and housing. The secretary of
5 commerce and housing shall
provide opportunities for coordination and
6 cooperation of SKILL projects with
other job training activities in Kansas.
7 (b) The
secretary of commerce and housing shall adopt rules and
8 regulations as follows: (1)
Prescribing review standards and priorities for
9 approval of proposed agreements under
this act, including appropriate
10 incentives for cooperation among projects,
in order to maximize the num-
11 ber of new jobs created with respect to
individual Kansas basic enter-
12 prises, which will remain in
Kansas, and; (2) prescribing limits on
program
13 costs and on project and program size in
relation to the number of new
14 jobs created or the wages of new jobs
created. No agreement shall be
15 approved which provides for program costs
of a project under the agree-
16 ment of more than 90% of the amount equal
to the estimated rate of
17 withholding tax applied to the estimated
amount of gross wages of all the
18 new jobs under the project over a ten-year
period; and (3) prescribing
19 criteria for approval by the secretary
of commerce and housing of a pro-
20 gram or project that will allow a Kansas
basic enterprise to: (A) Maintain
21 a minimum of 1,000 retained jobs; (B)
involves an investment of at least
22 $250,000,000; and (C) a finding by the
secretary of commerce and housing
23 that the program or project will be a
major factor in the Kansas basic
24 enterprise remaining in Kansas.
25 (c) Notice of
the approval of a project or program under the IMPACT
26 act shall be provided to the
chairpersons of the senate committee on com-
27 merce and the committee on economic
development of the house of
28 representatives.
29 (c)
(d) The secretary of commerce and housing may adopt
such other
30 rules and regulations as may be required
for the implementation and
31 administration of this act.
32 Sec.
3. K.S.A. 1999 Supp. 74-50,106 is hereby amended to read
as
33 follows: 74-50,106. (a) The secretary of
commerce and housing shall re-
34 view applications for proposed agreements
submitted by employers in
35 accordance with the standards and
guidelines prescribed by this act and
36 by rules and regulations adopted under
K.S.A. 74-50,104 and amend-
37 ments thereto. Each application for
approval of a proposed agreement
38 shall be accompanied by information about
the number and wages of the
39 new or retained jobs created by the
employer, documentation of existing
40 training activities of the employer and
such other information as may be
41 required by the secretary of commerce and
housing.
42 (b) The secretary
of commerce and housing may pool the funding
43 requirements of projects which are the
subject of proposed agreements
5
1 to determine the funding requirements
of the SKILL projects under con-
2 sideration to facilitate the issuance
of bonds by the Kansas development
3 finance authority.
4 (c) The
secretary of commerce and housing is hereby authorized to
5 expend funds raised pursuant to this
act on major project investments.
6 The secretary shall adopt guidelines
consistent with this act concerning
7 firm eligibility for major project
investments and shall otherwise admin-
8 ister the major project investment
portion of the IMPACT act.
9 (d) In
order for an employer to be eligible for a major project in-
10 vestment, the employer must:
11 (1) Annually make
an investment in training and education of the
12 employer's employees that exceeds 2% of the
employer's total annual
13 payroll costs; or
14 (2) agree that a
portion of any funds available under the agreement
15 be spent directly on employee education and
training.
16 (e) Prior to
obtaining financing from the Kansas development finance
17 authority for any project, group of
projects or major project investment
18 for one or more employers, the secretary of
commerce and housing shall
19 present each such project to the governor's
council on work force training
20 and investment for review and approval. No
agreement shall be approved
21 by the secretary of commerce and housing
unless each project under the
22 agreement has been reviewed and finally
approved by the governor's
23 council on work force training and
investment.
24 Sec.
4. K.S.A. 1999 Supp. 74-50,111 is hereby amended to read
as
25 follows: 74-50,111. The secretary of
commerce and housing shall annually
26 report on activities under the IMPACT act,
pursuant to K.S.A. 1999 Supp.
27 74-5049, and amendments thereto. Each
report shall contain information
28 regarding the number and characteristics of
the new jobs created or jobs
29 retained in Kansas for which SKILL
projects or major project investments
30 have been financed under this act,
including a report on any such new or
31 retained jobs which do not continue
to exist and the circumstances and
32 effect of any such
discontinuances.
33 Sec. 5. K.S.A. 1999 Supp.
74-50,103, 74-50,104, 74-50,106 and 74-
34 50,111 are hereby repealed.
35 Sec. 6. This act shall
take effect and be in force from and after its
36 publication in the Kansas register.