[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
2
  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.