[As Amended by House Committee of the Whole]

         
As Amended by Senate Committee
         
Session of 2000
         
SENATE BILL No. 521
         
By Committee on Commerce
         
1-31
         

12             AN  ACT relating to the Kansas enterprise zone act; concerning eligibility
13             to participate thereunder [economic development; concerning en-
14             terprise zones and activities which may be undertaken therein];
15             amending K.S.A. 1999 Supp. 74-50,115[, 74-8902, 74-8904, 74-
16             8905, 74-8930 and 79-252a] and repealing the existing section [sec-
17             tions; also repealing K.S.A. 1999 Supp. 74-8921, 74-8922, 74-
18             8923, 74-8925, 74-8926, 74-8927, 74-8928 and 74-8929].
19      
20       Be it enacted by the Legislature of the State of Kansas:
21             Section  1. K.S.A. 1999 Supp. 74-50,115 is hereby amended to read
22       as follows: 74-50,115. (a) A manufacturing business may be eligible for a
23       sales tax exemption under the provisions of subsection (cc) of K.S.A. 79-
24       3606, and amendments thereto, if the manufacturing business complies
25       with the following requirements:
26             (1) A manufacturing business shall provide documented evidence of
27       job expansion involving the employment of at least two additional full-
28       time employees; and
29             (2) a manufacturing business located within the state of Kansas that
30       has documented evidence of job expansion as provided in paragraph (1),
31       which relocates in another city or county within the state of Kansas must
32       receive approval from the secretary prior to qualifying for the sales tax
33       exemption in subsection (cc) of K.S.A. 79-3606, and amendments thereto,
34       except that approval by the secretary shall not be required if the manu-
35       facturing business relocates within the same city.
36             (b) A nonmanufacturing business may be eligible for a sales tax ex-
37       emption under the provisions of subsection (cc) of K.S.A. 79-3606, and
38       amendments thereto, if the nonmanufacturing business complies with the
39       following requirements:
40             (1) A nonmanufacturing business shall provide documented evidence
41       of job expansion involving the employment of at least five additional full-
42       time employees; and
43             (2) a nonmanufacturing business located within the state of Kansas


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  1       that has documented evidence of job expansion as provided in paragraph
  2       (1), which relocates in another city or county within the state of Kansas
  3       must receive approval from the secretary prior to qualifying for the sales
  4       tax exemption in subsection (cc) of K.S.A. 79-3606, and amendments
  5       thereto, except that approval by the secretary shall not be required if the
  6       nonmanufacturing business relocates within the same city.
  7             (c) A retail business may qualify for the sales tax exemption under
  8       subsection (cc) of K.S.A. 79-3606, and amendments thereto, if the retail
  9       business complies with the following requirements:
10             (1) A retail business shall provide documented evidence of job ex-
11       pansion involving the employment of at least two additional full-time em-
12       ployees; and
13             (2) such retail business locates or expands to a city having a popula-
14       tion of 2,500 or less, as determined by the latest United States federal
15       census.
16             (d) Any person constructing, reconstructing, remodeling or enlarging
17       a facility which will be leased in whole or in part for a period of five years
18       or more to a business that would be eligible for a sales tax exemption
19       hereunder if such business had constructed, reconstructed, enlarged or
20       remodeled such facility or portion thereof itself shall be entitled to the
21       sales tax exemption under the provisions of subsection (cc) of K.S.A. 79-
22       3606, and amendments thereto. When such person leases less than the
23       total facility to an eligible business, the sales tax exemption may be claimed
24       a project exemption certificate may be granted on: (1) The total cost
25       of constructing, reconstructing, remodeling or enlarging, the facility mul-
26       tiplied by a fraction given by dividing the number of leased square feet
27       eligible for the sale sales tax exemption by the total square feet being
28       constructed, reconstructed, remodeled or enlarged; or (2) the actual cost
29       of constructing, reconstructing, remodeling or enlarging that portion of
30       the facility to be occupied by the eligible business, as the person may
31       elect.
32             (e) A business may qualify for a sales tax exemption under subsection
33       (cc) of K.S.A. 79-3606, and amendments thereto, without regard to any
34       of the foregoing requirements of this section if it is certified as a qualified
35       firm by the secretary of commerce and housing pursuant to K.S.A. 1999
36       Supp. 74-50,131, and amendments thereto, and is entitled to the corporate
37       tax credit established in K.S.A. 1999 Supp. 74-50,132, and amendments
38       thereto, or has received written approval for participation and has partic-
39       ipated, during the tax year in which the exemption is claimed, in training
40       assistance by the department of commerce and housing under the Kansas
41       industrial training, Kansas industrial retraining or state of Kansas invest-
42       ments in lifelong learning program.
43             (f) The secretary may adopt rules and regulations to implement and


3

  1       administer the provisions of this section.
  2        [Sec.  2. K.S.A. 1999 Supp. 74-8902 is hereby amended to read
  3       as follows: 74-8902. The following words or terms used in this act
  4       shall have the following meanings unless a different meaning
  5       clearly appears from the context:
  6             [(a) ``Act'' means the Kansas development finance authority
  7       act.
  8             [(b) ``Authority'' means the Kansas development finance au-
  9       thority created by K.S.A. 74-8903, and amendments thereto.
10             [(c) ``Agricultural business enterprises'' means facilities sup-
11       porting or utilized in the operation of farms, ranches and other
12       agricultural, aquacultural or silvicultural commodity producers
13       and services provided in conjunction with the foregoing. ``Agri-
14       cultural business enterprise'' shall not include a swine production
15       facility on agricultural land which is owned, acquired, obtained or
16       leased by a corporation, limited liability company, limited part-
17       nership, corporate partnership or trust.
18             [(d) ``Agricultural land,'' ``corporation,'' ``corporate partner-
19       ship,'' ``limited liability company,'' ``limited partnership,'' ``swine
20       production facility'' and ``trust'' have the meanings ascribed pur-
21       suant to K.S.A. 17-5903, and amendments thereto.
22             [(e) ``Board of directors'' means the board of directors of the
23       authority created by K.S.A. 74-8903, and amendments thereto.
24             [(f) ``Bonds'' means any bonds, notes, debentures, interim cer-
25       tificates, grant and revenue anticipation notes, interest in a lease,
26       lease certificate of participation or other evidences of indebted-
27       ness, whether or not the interest on which is subject to federal
28       income taxation, issued by the authority pursuant to this act.
29             [(g) ``Capital improvements'' means any physical public better-
30       ment or improvement or any preliminary plans, studies or surveys
31       relative thereto; land or rights in land, including, without limita-
32       tions, leases, air rights, easements, rights-of-way or licenses; and
33       any furnishings, machinery, vehicles, apparatus or equipment for
34       any public betterment or improvement.
35             [(h) ``Construct'' means to acquire or build, in whole or in part,
36       in such manner and by such method as the authority shall deter-
37       mine to be in the public interest and necessary to accomplish the
38       purposes of and authority set forth in this act.
39             [(i) ``Loans'' means loans made for the purposes of financing
40       any of the activities authorized within this act, including loans
41       made to financial institutions for funding or as security for loans
42       made for accomplishing any of the purposes of this act and re-
43       serves and expenses appropriate or incidental thereto.


4

  1             [(j) ``Educational facilities'' means real, personal and mixed
  2       property of any and every kind intended by an educational insti-
  3       tution in furtherance of its educational program.
  4             [(k) ``Facilities'' means any real property, personal property or
  5       mixed property of any and every kind.
  6             [(l) ``Health care facilities'' means facilities for furnishing phys-
  7       ical or mental health care.
  8             [(m) ``Housing development'' means any work or undertaking,
  9       whether new construction or rehabilitation, which is designed and
10       financed pursuant to the provisions of this act for the primary pur-
11       pose of providing dwelling accommodations for elderly persons
12       and families of low income in need of housing.
13             [(n) ``Industrial enterprise'' means facilities for manufacturing,
14       producing, processing, assembling, repairing, extracting, ware-
15       housing, distributing, communications, computer services, trans-
16       portation, corporate and management offices and services pro-
17       vided in connection with any of the foregoing, in isolation or in
18       any combination, that involve the creation of new or additional
19       employment or the retention of existing employment.
20             [(o) ``Political subdivision'' means political or taxing subdivi-
21       sions of the state, including municipal and quasi-municipal cor-
22       porations, boards, commissions, authorities, councils, committees,
23       subcommittees and other subordinate groups or administrative
24       units thereof, receiving or expending and supported, in whole or
25       in part, by public funds.
26             [(p) ``Pooled bonds'' means bonds of the authority, the interest
27       on which is subject to federal income taxation, which are issued
28       for the purpose of acquiring bonds issued by two or more political
29       subdivisions.
30             [(q) ``Project of statewide as well as local importance'' means a project
31       as to which the secretary of commerce and housing has made a finding
32       that at least: (i) Capital improvements costing not less than $300,000,000
33       or, if constructed in a county which according to the 1990 decennial
34       census contained a population of 25,000 or less, costing not less than
35       $5,000,000 will be built in the state for such project; (ii) not less than
36       1,500 or, if created in a county which according to the 1990 decennial
37       census contained a population of 25,000 or less, not less than 150 per-
38       manent and seasonal employment positions as defined by K.S.A. 74-
39       50,114, and amendments thereto, will be created in the state by such
40       project; (iii) is located outside of the city limits of any city at the time of
41       such finding; and (iv) is to be located at a site designated as a federal
42       enclave as of January 1, 1998.
43             [(r) (q) ``State'' means the state of Kansas.


5

  1             [(s) (r) ``State agency'' means any office, department, board,
  2       commission, bureau, division, public corporation, agency or in-
  3       strumentality of this state.
  4             [Sec.  3. K.S.A. 1999 Supp. 74-8904 is hereby amended to read
  5       as follows: 74-8904. Except as otherwise limited by this act, the
  6       authority shall have the following powers to:
  7             [(a) Sue and be sued;
  8             [(b) have a seal and alter such seal;
  9             [(c) make and alter bylaws for its organization and internal
10       management;
11             [(d) adopt such rules and regulations as may be necessary to
12       carry out the purposes of this act;
13             [(e) acquire, hold and dispose of real and personal property for
14       its corporate purposes;
15             [(f) appoint officers, agents and employees, prescribe their du-
16       ties and qualifications and fix their compensation;
17             [(g) borrow money and to issue notes, bonds and other obli-
18       gations pursuant to K.S.A. 74-8905, and amendments thereto,
19       whether or not the interest on which is subject to federal income
20       taxation, and to provide for the rights of the lenders or holders
21       thereof;
22             [(h) purchase notes or participations in notes evidencing loans
23       which are secured by mortgages or security interests and to enter
24       into contracts in that regard;
25             [(i) make secured or unsecured loans for any of the purposes
26       for which bonds of the authority may be issued under this act or
27       to low and moderate income multifamily rental housing projects
28       participating in programs established in section 42 of the federal
29       internal revenue code, and provide financing for housing projects
30       and programs in participation with programs established by the
31       United States department of housing and urban development or
32       the Kansas department of commerce and housing; except as oth-
33       erwise provided in this subsection, nothing in this act shall be con-
34       strued to authorize the authority to make loans directly to individ-
35       uals to finance housing developments;
36             [(j) sell mortgages and security interests at public or private
37       sale, to negotiate modifications or alterations in mortgage and se-
38       curity interests, to foreclose on any mortgage or security interest
39       in default or commence any action to protect or enforce any right
40       conferred upon it by any law, mortgage, security agreement, con-
41       tract or other agreement, and to bid for and purchase property
42       which was the subject of such mortgage or security interest at any
43       foreclosure or at any other sale, to acquire or take possession of


6

  1       any such property, and to exercise any and all rights as provided
  2       by law for the benefit or protection of the authority or mortgage
  3       holders;
  4             [(k) collect fees and charges in connection with its loans, bond
  5       guarantees, commitments and servicing, including, but not limited
  6       to, reimbursement of costs of financing as the authority shall de-
  7       termine to be reasonable and as shall be approved by the authority;
  8             [(l) make and execute contracts for the servicing of mortgages
  9       acquired by the authority pursuant to this act, and to pay the rea-
10       sonable value of services rendered to the authority pursuant to
11       those contracts;
12             [(m) enter into agreements with and accept gifts, grants, loans
13       and other aid from the federal government, the state, any state
14       agency, any political subdivision of the state, or any person or cor-
15       poration, foundation or legal entity, and to agree to and comply
16       with any conditions attached to federal and state financial assis-
17       tance not inconsistent with the provisions of this act;
18             [(n) invest moneys of the authority not required for immediate
19       use, including proceeds from the sale of any bonds, in such manner
20       as the board shall determine, subject to any agreement with bond-
21       holders stated in the authorizing resolution providing for the is-
22       suance of bonds;
23             [(o) procure insurance against any loss in connection with its
24       programs, property and other assets;
25             [(p) provide technical assistance and advice to the state or po-
26       litical subdivisions of the state and to enter into contracts with the
27       state or political subdivisions of the state to provide such services.
28       The state or political subdivisions of the state are hereby author-
29       ized to enter into contracts with the authority for such services and
30       to pay for such services as may be provided them;
31             [(q) establish accounts in one or more depositories;
32             [(r) lease, acquire, construct, sell and otherwise deal in and
33       contract concerning any facilities;
34             [(s) have and exercise all of the powers granted to the public
35       housing authorities by the state, except that the authority shall not
36       have the power of eminent domain;
37             [(t) do any and all things necessary or convenient to carry out
38       purposes of the authority and exercise the powers given and
39       granted in this act;
40             [(u) assist minority businesses in obtaining loans or other
41       means of financial assistance. The terms and conditions of such
42       loans or financial assistance, including the charges for interest and
43       other services, will be consistent with the provisions of this act. In


7

  1       order to comply with this requirement, efforts must be made to
  2       solicit for review and analysis proposed minority business ven-
  3       tures. Basic loan underwriting standards will not be waived to in-
  4       consistently favor minority persons or businesses from the intent
  5       of the authority's lending practices; and
  6             [(v) form one or more subsidiary corporations under K.S.A. 17-
  7       6001 et seq., and amendments thereto, in accordance with the pro-
  8       cedures therein contained. Each subsidiary corporation shall be
  9       subject to the same restrictions and limitations as to the powers
10       and purposes to which the authority is subject. The authority may
11       delegate any of its powers, obligations and duties to any subsidiary
12       corporation by inclusion of such powers, obligations and duties in
13       the articles of incorporation of the subsidiary corporation. Subsid-
14       iary corporations so formed shall constitute legal entities separate
15       and distinct from each other, the authority and the state. The au-
16       thority shall not be liable for the debts or obligations or for any
17       actions or inactions of its subsidiary corporations unless the au-
18       thority expressly agrees otherwise in writing. The authority may
19       make loans or grants to a subsidiary corporation from time to time
20       to enable the subsidiary corporation to carry out its purposes. The
21       members of the authority shall constitute all of the directors of
22       each subsidiary corporation.
23             [The state, any municipality or any state commission, public au-
24       thority, agency, officer, department, board or division authorized
25       and empowered to enter into agreements with, to grant, convey,
26       lease or otherwise transfer any property to, or to otherwise trans-
27       act business with the authority, shall have the same authorization
28       and power to engage in these activities with each subsidiary cor-
29       poration of the authority.
30             [One or more such subsidiary corporation may be formed for
31       purposes of establishing state tax credit equity funds to assist in
32       the development of low-income and middle-income housing and
33       obtain financing through participation in the program established
34       in section 42 of the federal internal revenue code.
35             [Actions of the authority or any subsidiary corporation relating
36       to housing pursuant to this subsection (v) shall be carried out in
37       accordance with any terms, conditions and limitations relating to
38       policy issues regarding housing, as established by the secretary of
39       commerce and housing.
40             [One or more such subsidiary corporations may be formed for purposes
41       of acquiring or conveying on behalf of the state and pursuant to this act
42       a project of statewide as well as local importance, issuing bonds on behalf
43       of the state pursuant to this act to finance a project of statewide as well


8

  1       as local importance or otherwise financing on behalf of the state pursuant
  2       to this act a project of statewide as well as local importance. The Kansas
  3       statewide projects development corporation is hereby created in accord-
  4       ance with this section.
  5             [Sec.  4. K.S.A. 1999 Supp. 74-8905 is hereby amended to read
  6       as follows: 74-8905. (a) The authority is hereby authorized and
  7       empowered to issue bonds, either for a specific activity or on a
  8       pooled basis for a series of related or unrelated activities or pro-
  9       jects duly authorized by a political subdivision or group of political
10       subdivisions of the state in such amounts as shall be determined
11       by the authority for the purpose of financing projects of statewide
12       as well as local importance as defined pursuant to K.S.A. 12-1744
13       and amendments thereto, capital improvement facilities, educa-
14       tional facilities, health care facilities and housing developments.
15       Nothing in this act shall be construed to authorize the authority to
16       issue bonds or use the proceeds thereof to (1) purchase, condemn,
17       or otherwise acquire a utility plant or distribution system owned
18       or operated by a regulated public utility or (2) finance any capital
19       improvement facilities, educational facilities, or health care facil-
20       ities which are authorized under the laws of the state to be fi-
21       nanced by the issuance of general obligation or utility revenue
22       bonds of a political subdivision, except that the acquisition by the
23       authority of general obligation or utility revenue bonds issued by
24       political subdivisions with the proceeds of pooled bonds shall not
25       violate the provisions of the foregoing. Nothing in this subsection
26       (a) shall prohibit the issuance of bonds by the authority when any
27       statute specifically authorizes the issuance of bonds by the au-
28       thority or approves any activity or project of a state agency for
29       purposes of authorizing any such issuance of bonds in accordance
30       with this section and provides an exemption from the provisions
31       of this subsection (a).
32             [(b) The authority is hereby authorized and empowered to is-
33       sue bonds for activities and projects of state agencies as requested
34       by the secretary of administration. No bonds may be issued pur-
35       suant to this act for any activity or project of a state agency unless
36       the activity or project either has been approved by an appropria-
37       tion or other act of the legislature or has been approved by the
38       state finance council acting on this matter which is hereby char-
39       acterized as a matter of legislative delegation and subject to the
40       guidelines prescribed in subsection (c) of K.S.A. 75-3711c and
41       amendments thereto. When requested to do so by the secretary of
42       administration, the authority is further authorized and empow-
43       ered to issue bonds for the purpose of refunding, whether at ma-


9

  1       turity or in advance of maturity, any outstanding bonded indebt-
  2       edness of any state agency. The revenues of any state agency which
  3       are pledged as security for any bonds of such state agency which
  4       are refunded by refunding bonds of the authority may be pledged
  5       to the authority as security for the refunding bonds.
  6             [(c) The authority is hereby authorized and empowered to is-
  7       sue bonds for the purpose of financing industrial enterprises, ag-
  8       ricultural business enterprises, educational facilities, health care
  9       facilities and housing developments, or any combination of such
10       facilities, or any interest in facilities, including without limitation
11       leasehold interests in and mortgages on such facilities. No less than
12       30 days prior to the issuance of any bonds authorized under this
13       act with respect to any project or activity which is to be undertaken
14       for the direct benefit of any person or entity which is not a state
15       agency or a political subdivision, written notice of the intention of
16       the authority to provide financing and issue bonds therefor shall
17       be given by the president of the authority to the governing body
18       of the city in which the project or activity is to be located, or, if
19       the project or activity is not proposed to be located within a city,
20       such notice shall be given to the governing body of the county. No
21       bonds for the financing of the project or activity shall be issued by
22       the authority for a one-year period if, within 15 days after the
23       giving of such notice, the governing body of the political subdivi-
24       sion in which the project or activity is proposed to be located shall
25       have duly enacted an ordinance or resolution stating express dis-
26       approval of the project or activity and shall have notified the pres-
27       ident of the authority of such disapproval.
28             [(d) The authority is hereby authorized and empowered to is-
29       sue bonds for the purpose of establishing and funding one or more
30       series of venture capital funds in such principal amounts, at such
31       interest rates, in such maturities, with such security, and upon such
32       other terms and in such manner as is approved by resolution of
33       the authority. The proceeds of such bonds not placed in a venture
34       capital fund or used to pay or reimburse organizational, offering
35       and administrative expenses and fees necessary to the issuance and
36       sale of such bonds shall be invested and reinvested in such secu-
37       rities and other instruments as shall be provided in the resolution
38       under which such bonds are issued. Moneys in a venture capital
39       fund shall be used to make venture capital investments in new,
40       expanding or developing businesses, including, but not limited to,
41       equity and debt securities, warrants, options and other rights to
42       acquire such securities, subject to the provisions of the resolution
43       of the authority. The authority shall establish an investment policy


10

  1       with respect to the investment of the funds in a venture capital
  2       fund not inconsistent with the purposes of this act. The authority
  3       shall enter into an agreement with a management company ex-
  4       perienced in venture capital investments to manage and adminis-
  5       ter each venture capital fund upon terms not inconsistent with the
  6       purposes of this act and such investment policy. The authority may
  7       establish an advisory board to provide advice and consulting assis-
  8       tance to the authority and the management company with respect
  9       to the management and administration of each venture capital
10       fund and the establishment of its investment policy. All fees and
11       expenses incurred in the management and administration of a ven-
12       ture capital fund not paid or reimbursed out of the proceeds of
13       the bonds issued by the authority shall be paid or reimbursed out
14       of such venture capital fund.
15             [(e) The authority is hereby authorized and empowered to issue
16       bonds in one or more series for the purpose of financing a project of
17       statewide as well as local importance in connection with a redevelopment
18       plan that is approved by the authority in accordance with K.S.A. 1999
19       Supp. 74-8921 and 74-8922, and amendments thereto.
20             [(f) (e) The authority is hereby authorized and empowered to
21       use the proceeds of any bond issues herein authorized, together
22       with any other available funds, for venture capital investments or
23       for purchasing, leasing, constructing, restoring, renovating, alter-
24       ing or repairing facilities as herein authorized, for making loans,
25       purchasing mortgages or security interests in loan participations
26       and paying all incidental expenses therewith, paying expenses of
27       authorizing and issuing the bonds, paying interest on the bonds
28       until revenues thereof are available in sufficient amounts, pur-
29       chasing bond insurance or other credit enhancements on the
30       bonds, and funding such reserves as the authority deems necessary
31       and desirable. All moneys received by the authority, other than
32       moneys received by virtue of an appropriation, are hereby specif-
33       ically declared to be cash funds, restricted in their use and to be
34       used solely as provided herein. No moneys of the authority other
35       than moneys received by appropriation shall be deposited with the
36       state treasurer.
37             [(g) (f) Any time the authority is required to publish a notifi-
38       cation pursuant to the tax equity and fiscal responsibility act of
39       1982, the authority shall further publish such notification in the
40       Kansas register.
41             [(h) (g) Any time the authority issues bonds pursuant to this
42       section, the authority shall publish notification of such issuance of
43       bonds 14 days prior to any bond hearing in the official county


11

  1       newspaper where such bonds will be used and in the Kansas
  2       register.
  3             [Sec.  5. K.S.A. 1999 Supp. 74-8930 is hereby amended to read
  4       as follows: 74-8930. Within one year of the commencement of con-
  5       struction of any project of statewide as well as local importance as
  6       defined in K.S.A. 74-8902 12-1774 and amendments thereto, located
  7       within a county which according to the 1990 decennial census contained
  8       a population greater than 25,000, other than Wyandotte county, a de-
  9       veloper shall reimburse the unified government of Wyandotte
10       county for cash investment in the project as documented to and
11       determined by the secretary of commerce and housing.
12             [New Sec.  6. Under no circumstances shall the state of Kansas,
13       any of its political subdivisions, the Kansas development finance
14       authority or any unit of local government assume responsibility or
15       otherwise be responsible for any environmental remediation
16       which may be required to be performed within the redevelopment
17       district designated through any redevelopment plan. Any person
18       or entity, other than the state, an instrumentality of the state, or a
19       unit of local government, who proposes to take legal title to land
20       which is located at a site designated as a federal enclave prior to
21       January 1, 1998, for the purpose of developing a project of state-
22       wide as well as local importance, as defined in K.S.A. 12-1774 and
23       amendments thereto shall: (1) prior to taking such title, enter into
24       a consent decree agreement with the Kansas department of health
25       and environment or the United States environmental protection
26       agency under which such person or entity expressly agrees to be
27       responsible for and to complete the remediation of all environ-
28       mental contamination of such land according to established stan-
29       dards and levels for appropriate property uses, except that part, if
30       any, of the remediation which is, by agreement approved by the
31       governor, to be retained by the federal government or any agency
32       thereof and (2) prior to taking title to any of the land, provide
33       prepaid third-party financial guarantees to the state or an instru-
34       mentality thereof sufficient in form and amount to insure full and
35       complete remediation of all of the land within the federal enclave
36       as required in the consent decree agreement. Nothing in this sec-
37       tion is intended and shall not be construed to relieve the United
38       States army, the federal government or any agency thereof from
39       any duty, responsibility or liability for any contamination or re-
40       mediation of the land as may be imposed or required under state
41       or federal law; and
42             [Prior to taking title, possession or otherwise exercising control
43       over the land within a former federal enclave or in any other way


12

  1       exposing the state to potential liability for environmental reme-
  2       diation of such property, the state or any instrumentality of the
  3       state shall obtain the written opinion of a competent attorney, spe-
  4       cializing in environmental law and maintaining professional lia-
  5       bility insurance, regarding the state's potential liability resulting
  6       from taking title, possession or otherwise exercising control over
  7       the land.
  8             [Sec.  7. K.S.A. 1999 Supp. 79-252a is hereby amended to read
  9       as follows: 79-252a. No ad valorem tax exemption for real or per-
10       sonal property, located within a redevelopment district established
11       pursuant to K.S.A. 74-8921 12-1774 and amendments thereto,
12       granted after the effective date of this act by the governing body
13       of any city or the board of county commissioners of any county
14       pursuant to the provisions of section 13 of article 11 of the Kansas
15       constitution shall be deemed to exempt any such property from
16       the ad valorem property tax levied by or on behalf of a school
17       district.]
18        Sec.  2. [8.] K.S.A. 1999 Supp. 74-50,115 is[, 74-8902, 74-8904, 74-
19       8905, 74-8921, 74-8922, 74-8923, 74-8925, 74-8926, 74-8927, 74-
20       8928, 74-8929, 74-8930 and 79-252a are] hereby repealed.
21        Sec.  3. [9.] This act shall take effect and be in force from and after
22       its publication in the statute book.