[As Amended by Senate Committee of the Whole]

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          As Amended by Senate Committee          

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Session of 2000
          SENATE BILL No. 635           By Committee on Ways and Means           2-15          

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11             AN  ACT concerning municipal accounting; amending K.S.A. 12-896, 19-
12             508a, 19-3622, 75-1119, 75-1120, 75-1120a, 75-1122, [75-1123,] 79-
13             2925, 79-2927, 79-2929, 79-2929a, 79-2930, 79-2960 and 79-5111 and
14             K.S.A. 1999 Supp. 12-1927, 71-211, 75-2556 and 79-2005 and repeal-
15             ing the existing sections; also repealing K.S.A. 75-1121, 75-1123, 75-
16             1124, 75-3736, 79-2808, 79-2917 and 79-2926.
17      
18       Be it enacted by the Legislature of the State of Kansas:
19             Section  1. K.S.A. 12-896 is hereby amended to read as follows: 12-
20       896. Any municipal energy agency created under the provisions of this
21       act shall have the power to receive and expend for any lawful purpose of
22       the agency any grants, bequests, contributions and aid of any kind from
23       any private or public source. Any such agency shall be subject to the
24       budget and cash-basis law of the state of Kansas, and the board of direc-
25       tors shall provide for regular auditing and budgeting procedures as pre-
26       scribed by the director of accounts and reports pursuant to the provisions
27       of K.S.A. 75-1121 et seq. and amendments thereto.
28             Sec.  2. K.S.A. 1999 Supp. 12-1927 is hereby amended to read as
29       follows: 12-1927. (a) Except as provided by subsection (b) the recreation
30       commission shall prepare an annual budget for the operation of the rec-
31       reation system. Prior to the certification of its budget to the city or school
32       district, the recreation commission shall meet for the purpose of answer-
33       ing and hearing objections of taxpayers relating to the proposed budget
34       and for the purpose of considering amendments to such proposed budget.
35       The recreation commission shall give at least 10 days' notice of the time
36       and place of the meeting by publication in a weekly or daily newspaper
37       having a general circulation in the taxing district. Such notice shall include
38       the proposed budget and shall set out all essential items in the budget
39       except such groupings as designated by the director of accounts and re-
40       ports on a special publication form prescribed by the director of accounts
41       and reports and furnished with the regular budget form. The public hear-
42       ing required to be held herein shall be held not less than 10 days prior

2
  1       to the date on which the recreation commission is required to certify its
  2       budget to the city or school district. After such hearing the budget shall
  3       be adopted or amended and adopted by the recreation commission. In
  4       order to provide funds to carry out the provisions of this act and to pay
  5       a portion of the principal and interest on bonds issued pursuant to K.S.A.
  6       12-1774, and amendments thereto, the recreation commission shall an-
  7       nually, not later than August 1 of any year, certify its budget to such city
  8       or school district which shall levy a tax sufficient to raise the amount
  9       required by such budget on all the taxable tangible property within the
10       taxing district. Each year a copy of the budget adopted by the recreation
11       commission shall be filed with the city clerk in the case of a city-estab-
12       lished recreation system or with the clerk of the school district in the case
13       of a school district-established recreation system or with the clerk of the
14       taxing district in the case of a jointly established recreation system. A copy
15       of such budget also shall be filed with the county clerk of the county in
16       which the recreation system is located. If the recreation system is located
17       in more than one county, a copy of the budget shall be filed with the
18       clerk of the county in which the greater portion of the assessed valuation
19       of the recreation system is located. The city or school district shall not be
20       required to levy a tax in excess of the maximum tax levy set by the city
21       or school district by current resolution. In the case of a new recreation
22       commission established under the provisions of this act, such levy shall
23       not be required to exceed one mill. Whenever the recreation commission
24       determines that the tax currently being levied for the commission, as
25       previously established by the city or school district, is insufficient to op-
26       erate the recreation system and the commission desires to increase the
27       mill levy above the current levy, the commission shall request that the
28       city or school district authorize an increase by adopting a resolution de-
29       claring it necessary to increase the annual levy. The city or school district
30       may authorize the increase by resolution, but such increase shall not ex-
31       ceed one mill per year. The maximum annual mill levy for the recreation
32       commission general fund shall not exceed a total of four mills.
33             (b) Prior to adopting the budget pursuant to subsection (a), the Blue
34       Valley recreation commission appointed by the Blue Valley unified school
35       district No. 229 shall submit its proposed budget to the board of education
36       of such school district. The school board either shall approve, or modify
37       and approve, the proposed budget. The recreation commission shall
38       adopt such budget as approved, or modified and approved, by the board.
39             (c) Any resolution adopted under subsection (a) shall state the total
40       amount of the tax to be levied for the recreation system and shall be
41       published once each week for two consecutive weeks in the official news-
42       paper of the taxing district. Whereupon, such annual levy in an amount
43       not to exceed the amount stated in the resolution may be made for the

3
  1       ensuing budget year and each successive budget year unless a petition
  2       requesting an election upon the proposition to increase the tax levy in
  3       excess of the current tax levy, signed by at least 5% of the qualified voters
  4       of the taxing district, is filed with the county election officer within 30
  5       days following the date of the last publication of the resolution. In the
  6       event a valid petition is filed, no such increased levy shall be made without
  7       such proposition having been submitted to and having been approved by
  8       a majority of the voters of the taxing district voting at an election called
  9       and held thereon. All such elections shall be called and held in the manner
10       provided by the general bond law, and the cost of the election shall be
11       borne by the recreation commission. Such taxes shall be levied and col-
12       lected in like manner as other taxes, which levy the city or school district
13       shall certify, on or before August 25 of each year, to the county clerk who
14       is hereby authorized and required to place the same on the tax roll of the
15       county to be collected by the county treasurer and paid over by the county
16       treasurer to the ex officio treasurer of the recreation commission.
17             (d) The tax levy provided in this section shall not be considered a levy
18       of such city or school district under any of the statutes of this state, but
19       shall be in addition to all other levies authorized by law and, with respect
20       to any such levy made for the first time in 1989, shall not be subject to
21       the provisions of K.S.A. 79-5021 et seq., and amendments thereto.
22             (e) At any time after the making of the first tax levy pursuant to this
23       act, the amount of such tax levy may be reduced by a majority of the
24       voters of the taxing district voting at an election called pursuant to a
25       petition and conducted in the same manner as that prescribed by sub-
26       section (c). The authority of any recreation commission in existence on
27       the effective date of this act or any recreation commission established
28       under the provisions of this act to operate and conduct its activities, other
29       than the recreation commission appointed by the Blue Valley unified
30       school district No. 229, may be revoked in any year following the third
31       year of its operation by a majority of the voters of the taxing district voting
32       at an election called pursuant to a petition and conducted in the same
33       manner as that prescribed by subsection (c). If the petition submitted is
34       for the purpose of reducing the mill levy, it shall state the mill levy re-
35       duction desired. Upon revocation, all property and money belonging to
36       the recreation commission shall become the property of the taxing au-
37       thority levying the tax for the commission, and the recreation commission
38       shall be dissolved.
39             (f) All financial records of the recreation commission shall be audited
40       as provided in K.S.A. 75-1122, and amendments thereto, and a copy of
41       such annual audit report shall be filed with the governing body of the city
42       or school district, or both, in the case of a jointly established recreation
43       system. A copy of such audit also shall be filed with the county clerk of

4
  1       the county in which the recreation system is located. If the recreation
  2       system is located in more than one county, a copy of the budget shall be
  3       filed with the clerk of the county in which the greater portion of the
  4       assessed valuation of the recreation system is located. The cost of each
  5       audit shall be borne by the recreation commission.
  6             Sec.  3. K.S.A. 19-508a is hereby amended to read as follows: 19-
  7       508a. Each county treasurer shall submit each year to the governing body
  8       of every city, all or any part of the territory of which is located in the
  9       county, a report listing the amounts allocated or paid to each such city
10       during the year, itemized according to the source of moneys distributed.
11       Such report shall be made and submitted by transmission to the clerks of
12       the cities within forty-five (45) 45 days after the end of the calendar year,
13       on forms prescribed by the director of accounts and reports for the
14       purpose.
15             Sec.  4. K.S.A. 19-3622 is hereby amended to read as follows: 19-
16       3622. (a) The governing body of the fire district shall prepare an annual
17       budget for the operation of the fire district. Prior to the adoption of its
18       budget, the governing body shall meet for the purpose of answering and
19       hearing objections of taxpayers relating to the proposed budget and for
20       the purpose of considering amendments to such proposed budget. The
21       governing body shall give at least 10 days' notice of the time and place of
22       the meeting by publication in a weekly or daily newspaper having a gen-
23       eral circulation in the fire district. Such notice shall include the proposed
24       budget and shall set out all essential items in the budget on a publication
25       form prescribed by the director of accounts and reports and furnished
26       with the regular budget form. The public hearing required to be held
27       herein shall be held not less than 10 days prior to the date on which the
28       fire district is required to submit its budget to the board of county com-
29       missioners for review and approval thereby. After such hearing a pro-
30       posed budget shall be adopted or amended and adopted by the fire dis-
31       trict. The governing body, not later than August 1 of any year, shall submit
32       its proposed budget to the board of county commissioners for review and
33       approval thereby. The board shall approve or disapprove the budget no
34       later than August 10. After the board of county commissioners approves
35       the budget, the governing body shall submit the budget to the county
36       clerk as provided by K.S.A. 79-2930, and amendments thereto.
37             (b) The governing body of the fire district shall have the power to
38       levy a tax not to exceed 8.5 mills upon the dollar of the assessed valuation
39       of all taxable, tangible property in the district, for the purpose of paying
40       any lawful cost or expense incurred by the fire district and to pay a portion
41       of the principal and interest on bonds issued pursuant to K.S.A. 12-1774,
42       and amendments thereto. No other levies for the operation and mainte-
43       nance of a fire department shall be made on such property by any other

5
  1       taxing district. If any incorporated city is partly within the boundaries of
  2       one or more fire districts, and partly outside the boundaries of any fire
  3       district, the governing body of such city may cause a tax to be levied in
  4       that portion of the city outside of the boundaries of any fire district for
  5       fire protection, and may contract with any fire district, city, township or
  6       other organized fire department, to furnish fire protection in that portion
  7       of the city not lying within the boundaries of a fire district, in the same
  8       manner as though the city lay wholly without the boundaries of a fire
  9       district.
10             (c) The governing body of the fire district may increase the mill levy
11       authorized by subsection (b) in an amount not to exceed 11.5 mills by
12       adoption of a resolution. Such resolution shall be published once each
13       week for two consecutive weeks in a newspaper of general circulation in
14       the fire district. If within 30 days after the last publication of the reso-
15       lution, a petition signed by not less than 5% of the qualified electors in
16       the fire district is filed in the office of the county election officer request-
17       ing an election thereon, no levy in an amount exceeding 8.5 mills shall
18       be made unless the question is submitted to and approved by a majority
19       of the voters of the fire district voting at an election called by the gov-
20       erning body. Such election shall be called and held in the manner pro-
21       vided under the general bond law.
22             Sec.  5. K.S.A. 1999 Supp. 71-211 is hereby amended to read as fol-
23       lows: 71-211. The director of accounts and reports, with the advice of the
24       state board of regents and, with the advice of the legislative educational
25       planning committee, shall prescribe a standardized and uniform chart of
26       accounts for use by all community colleges. Such chart of accounts shall
27       be compatible with the revenues and expenditures classification system
28       developed by the national association of college and university business
29       officers. The chart of accounts shall be adaptable to manual or automated
30       systems, and use of such chart of accounts is hereby required for all
31       community colleges.
32             Sec.  6. K.S.A. 75-1119 is hereby amended to read as follows: 75-
33       1119. (a) The board of accountancy shall adopt rules and regulations gov-
34       erning the renewal and revocation of licenses of licensed municipal public
35       accountants. Such licenses shall be renewed for a two-year period from
36       July 1 of the year of renewal and may be renewed at the discretion and
37       under the rules and regulations of the board of accountancy. The rules
38       and regulations of the state municipal accounting board governing the
39       renewal and revocation of licenses of licensed municipal public account-
40       ants in existence on the effective date of this act shall continue to be
41       effective and shall be deemed to be the rules and regulations of the board
42       of accountancy until revised, amended, repealed or nullified pursuant to
43       law. All other rules and regulations of the state municipal accounting

6
  1       board shall continue in existence until revised, amended, repealed or
  2       nullified by the director of accounts and reports pursuant to law.
  3             (b) The chairperson of the board of accountancy is hereby authorized
  4       to administer oaths, issue subpoenas and take testimony of any persons
  5       or witnesses that the board of accountancy may desire relative to any duty
  6       or power given it in this section.
  7             (c) No person may be issued an original license to engage in practice
  8       as a licensed municipal public accountant. Licensed municipal public ac-
  9       countants who hold original licenses to practice as such prior to the ef-
10       fective date of this act and who are in active practice as licensed municipal
11       public accountants or have been granted inactive status shall continue to
12       hold such licenses and shall remain entitled to have such licenses renewed
13       and to practice as licensed municipal public accountants subject to rules
14       and regulations of the board of accountancy.
15             Sec.  7. K.S.A. 75-1120 is hereby amended to read as follows: 75-
16       1120. There is hereby authorized and there shall be a system of fiscal
17       procedure, accounting and reporting for all municipalities of the state of
18       Kansas required by K.S.A. 75-1122, and amendments thereto, to have
19       their accounts examined and audited at least once each year, which system
20       shall be uniform in its application to all officers of the same grade and
21       kind and all accounts of the same kind of municipalities to which it is
22       applicable, and shall be used by such municipalities and their officers and
23       employees when directed by the director of accounts and reports. Any
24       municipality may use or adopt such forms as it shall deem best suited for
25       its particular needs so long as all necessary information is shown on such
26       forms. No copyrighted form or forms, books or records shall be adopted.
27       The system adopted must be obtainable upon the open market.
28             Sec.  8. K.S.A. 75-1120a is hereby amended to read as follows: 75-
29       1120a. (a) Except as otherwise provided in this section, the governing
30       body of each municipality, as defined in K.S.A. 75-1117, and amendments
31       thereto, shall utilize accounting procedures and fiscal procedures in the
32       preparation of financial statements and financial reports that conform to
33       generally accepted accounting principles as promulgated by the govern-
34       mental accounting standards board and the American institute of certified
35       public accountants and adopted by rules and regulations of the director
36       of accounts and reports.
37             (b) The governing body of any municipality, which has aggregate an-
38       nual gross receipts of less than $275,000 and which does not operate a
39       utility, shall not be required to maintain fixed asset records.
40             (c)  (1) The director of accounts and reports shall governing body of
41       any municipality may waive the requirements of subsection (a) upon
42       request therefor by the governing body of any municipality. The waiver
43       shall be granted to the extent requested by the governing body. Prior to

7
  1       requesting the waiver provided for in this subsection approving such
  2       waiver, the governing body, by resolution, annually shall make a finding
  3       that financial statements and financial reports prepared in conformity
  4       with the requirements of subsection (a) are not relevant to the require-
  5       ments of the cash-basis and budget laws of this state and are of no sig-
  6       nificant value to the governing body or members of the general public of
  7       the municipality. No governing body of a municipality shall request ap-
  8       prove the waiver or adopt the resolution authorized under this subsection
  9       if the provisions of revenue bond ordinances or resolutions or other or-
10       dinances or resolutions of the municipality require financial statements
11       and financial reports to be prepared in conformity with the requirements
12       of subsection (a). The governing body of any municipality which is granted
13       approves a waiver under this subsection shall cause financial statements
14       and financial reports of the municipality to be prepared on the basis of
15       cash receipts and disbursements as adjusted to show compliance with the
16       cash-basis and budget laws of this state.
17             (2) The provisions of this subsection do not apply to community
18       colleges.
19             (d) The director of accounts and reports state board of regents shall
20       waive the requirements of law relating to the preparation and mainte-
21       nance of fixed asset records upon request therefor by the board of trustees
22       of any community college. The waiver shall be granted to the extent and
23       for the period of time requested by the board of trustees. Nothing con-
24       tained in this subsection shall be construed so as to exempt any com-
25       munity college from compliance with the provisions of K.S.A. 71-211, and
26       amendments thereto, which requires the use by all community colleges
27       of a standardized and uniform chart of accounts.
28             Sec.  9. K.S.A. 75-1122 is hereby amended to read as follows: 75-
29       1122. (a) The governing body of every unified school district, the govern-
30       ing body of every recreation commission having aggregate annual gross
31       receipts in excess of $150,000 and the governing body of all other mu-
32       nicipalities either having aggregate annual gross receipts in excess of
33       $275,000 or which has general obligation or revenue bonds outstanding
34       in excess of $275,000 shall have its accounts examined and audited by a
35       licensed municipal public accountant or accountants or certified public
36       accountant or accountants at least once each year. In the case of school
37       districts, all tax and other funds such as activity funds and accounts shall
38       also be examined and audited.
39             (b) Any municipality required to have an annual audit for the first
40       time under this section shall be exempt from the requirement if the mu-
41       nicipality sends to the division of accounts and reports a written request
42       for assistance in complying with the required accounting procedures of
43       K.S.A. 75-1121, and amendments thereto. The exemption shall continue

8
  1       until the assistance is rendered by the division of accounts and reports.
  2             (c) The governing body of any city of the third class required to have
  3       its accounts examined and audited pursuant to the provisions of this sec-
  4       tion shall annually determine the total cost to be incurred by the city in
  5       complying with the requirements of this act and shall identify the same
  6       in the budget of the city.
  7             (d) Each year the township board of any township required to have
  8       an annual audit may adopt a resolution requesting the director of accounts
  9       and reports to exempt the township from the requirements of this section.
10       The resolution shall be submitted prior to the end of the fiscal year. Upon
11       receipt of the resolution, the director of accounts and reports shall waive
12       the requirement for an audit for such year.
13             [Sec.  10. K.S.A. 75-1123 is hereby amended to read as follows:
14       75-1123. In conducting examinations and audits provided for by
15       K.S.A. 10-1208, 12-866, 13-1243, 13-14d12 or 75-1122, and amend-
16       ments thereto, the licensed municipal public accountant or certified
17       public accountant so engaged shall follow the municipal audit
18       guide, or the applicable portions thereof, prescribed by the director
19       of accounts and reports. The municipality so audited shall install and put
20       such standardized accounting system into effect as soon as possible after
21       such audit referenced by rule and regulation of the board of accountancy.]
22             Sec.  10 [11]. K.S.A. 1999 Supp. 75-2556 is hereby amended to read
23       as follows: 75-2556. (a) The state librarian shall determine the amount of
24       the grant-in-aid each eligible local public library is to receive based on
25       the latest population census figures as certified by the division of the
26       budget.
27             (b) Except as provided by subsection (d), no local public library shall
28       be eligible for any state grants-in-aid if the total amount of the following
29       paragraphs is less than the total amount produced from such sources for
30       the same library for the previous year, based on the information contained
31       in the official annual budgets of municipalities that are filed with the
32       division of accounts and reports in accordance with K.S.A. 79-2930, and
33       amendments thereto:
34             (1) The amount produced by the local ad valorem tax levies for the
35       current year expenses for such library;
36             (2) the amount of moneys received from the local ad valorem tax
37       reduction fund for current year expenses for such library;
38             (3) the amount of moneys received from taxes levied upon motor
39       vehicles under the provisions of K.S.A. 79-5101 et seq., and amendments
40       thereto, for current year expenses for such library; and
41             (4) the amount of moneys received in the current year from collec-
42       tions of unpaid local ad valorem tax levies for prior year expenses for such
43       library.

9
  1             (c) Local public library districts in which the assessed valuation de-
  2       creases shall remain eligible for state grants-in-aid so long as the ad va-
  3       lorem tax mill rate for the support of such library has not been reduced
  4       below the mill rate imposed for such purpose for the previous year.
  5             (d) If a local public library fails to qualify for eligibility for any state
  6       grants-in-aid under subsection (b), the state librarian shall have the power
  7       to continue the eligibility of a local public library for any state grants-in-
  8       aid if the state librarian, after evaluation of all the circumstances, deter-
  9       mines that the legislative intent for maintenance of local tax levy support
10       for the on-going operations of the library is being met by the library
11       district.
12             (e) The distribution so determined shall be apportioned and paid on
13       February 15 of each year.
14             Sec.  11 [12]. K.S.A. 1999 Supp. 79-2005 is hereby amended to read
15       as follows: 79-2005. (a) Any taxpayer, before protesting the payment of
16       such taxpayer's taxes, shall be required, either at the time of paying such
17       taxes, or, if the whole or part of the taxes are paid prior to December 20,
18       no later than December 20, or, with respect to taxes paid in whole on or
19       before December 20 by an escrow or tax service agent, no later than
20       January 31 of the next year, to file a written statement with the county
21       treasurer, on forms approved by the state board of tax appeals and pro-
22       vided by the county treasurer, clearly stating the grounds on which the
23       whole or any part of such taxes are protested and citing any law, statute
24       or facts on which such taxpayer relies in protesting the whole or any part
25       of such taxes. When the grounds of such protest is that the valuation or
26       assessment of the property upon which the taxes are levied is illegal or
27       void, the county treasurer shall forward a copy of the written statement
28       of protest to the county appraiser who shall within 15 days of the receipt
29       thereof, schedule an informal meeting with the taxpayer or such tax-
30       payer's agent or attorney with reference to the property in question. The
31       county appraiser shall review the appraisal of the taxpayer's property with
32       the taxpayer or such taxpayer's agent or attorney and may change the
33       valuation of the taxpayer's property, if in the county appraiser's opinion
34       a change in the valuation of the taxpayer's property is required to assure
35       that the taxpayer's property is valued according to law, and shall, within
36       15 business days thereof, notify the taxpayer in the event the valuation of
37       the taxpayer's property is changed, in writing of the results of the meeting.
38       In the event the valuation of the taxpayer's property is changed and such
39       change requires a refund of taxes and interest thereon, the county trea-
40       surer shall process the refund in the manner provided by subsection (l).
41             (b) No protest appealing the valuation or assessment of property shall
42       be filed pertaining to any year's valuation or assessment when an appeal
43       of such valuation or assessment was commenced pursuant to K.S.A. 79-

10
  1       1448, and amendments thereto, nor shall the second half payment of taxes
  2       be protested when the first half payment of taxes has been protested.
  3       Notwithstanding the foregoing, this provision shall not prevent any sub-
  4       sequent owner from protesting taxes levied for the year in which such
  5       property was acquired, nor shall it prevent any taxpayer from protesting
  6       taxes when the valuation or assessment of such taxpayer's property has
  7       been changed pursuant to an order of the director of property valuation.
  8             (c) A protest shall not be necessary to protect the right to a refund
  9       of taxes in the event a refund is required because the final resolution of
10       an appeal commenced pursuant to K.S.A. 79-1448, and amendments
11       thereto, occurs after the final date prescribed for the protest of taxes.
12             (d) If the grounds of such protest shall be that the valuation or as-
13       sessment of the property upon which the taxes so protested are levied is
14       illegal or void, such statement shall further state the exact amount of
15       valuation or assessment which the taxpayer admits to be valid and the
16       exact portion of such taxes which is being protested.
17             (e) If the grounds of such protest shall be that any tax levy, or any
18       part thereof, is illegal, such statement shall further state the exact portion
19       of such tax which is being protested.
20             (f) Upon the filing of a written statement of protest, the grounds of
21       which shall be that any tax levied, or any part thereof, is illegal, the county
22       treasurer shall mail a copy of such written statement of protest to the
23       state board of tax appeals and the governing body of the taxing district
24       making the levy being protested.
25             (g) Within 30 days after notification of the results of the informal
26       meeting with the county appraiser pursuant to subsection (a), the pro-
27       testing taxpayer may, if aggrieved by the results of the informal meeting
28       with the county appraiser, appeal such results to the state board of tax
29       appeals.
30             (h) After examination of the copy of the written statement of protest
31       and a copy of the written notification of the results of the informal meet-
32       ing with the county appraiser in cases where the grounds of such protest
33       is that the valuation or assessment of the property upon which the taxes
34       are levied is illegal or void, the board shall conduct a hearing in accord-
35       ance with the provisions of the Kansas administrative procedure act, un-
36       less waived by the interested parties in writing. If the grounds of such
37       protest is that the valuation or assessment of the property is illegal or void
38       the board shall notify the county appraiser thereof.
39             (i) In the event of a hearing, the same shall be originally set not later
40       than 90 days after the filing of the copy of the written statement of protest
41       and a copy, when applicable, of the written notification of the results of
42       the informal meeting with the county appraiser with the board. With
43       regard to any matter properly submitted to the board relating to the

11
  1       determination of valuation of residential property or real property used
  2       for commercial and industrial purposes for taxation purposes, it shall be
  3       the duty of the county appraiser to initiate the production of evidence to
  4       demonstrate, by a preponderance of the evidence, the validity and cor-
  5       rectness of such determination except that no such duty shall accrue to
  6       the county or district appraiser with regard to leased commercial and
  7       industrial property unless the property owner has furnished to the county
  8       or district appraiser a complete income and expense statement for the
  9       property for the three years next preceding the year of appeal. No pre-
10       sumption shall exist in favor of the county appraiser with respect to the
11       validity and correctness of such determination. In all instances where the
12       board sets a request for hearing and requires the representation of the
13       county by its attorney or counselor at such hearing, the county shall be
14       represented by its county attorney or counselor.
15             (j) When a determination is made as to the merits of the tax protest,
16       the board shall render and serve its order thereon. The county treasurer
17       shall notify all affected taxing districts of the amount by which tax reve-
18       nues will be reduced as a result of a refund.
19             (k) If a protesting taxpayer fails to file a copy of the written statement
20       of protest and a copy, when applicable, of the written notification of the
21       results of the informal meeting with the county appraiser with the board
22       within the time limit prescribed, such protest shall become null and void
23       and of no effect whatsoever.
24             (l)  (1) In the event the board orders that a refund be made pursuant
25       to this section or the provisions of K.S.A. 79-1609, and amendments
26       thereto, or a court of competent jurisdiction orders that a refund be made,
27       and no appeal is taken from such order, or in the event a change in
28       valuation which results in a refund pursuant to subsection (a), the county
29       treasurer shall, as soon thereafter as reasonably practicable, refund to the
30       taxpayer such protested taxes and, with respect to protests or appeals
31       commenced after the effective date of this act, interest computed at the
32       rate prescribed by K.S.A. 79-2968, and amendments thereto, minus two
33       percentage points, per annum from the date of payment of such taxes
34       from tax moneys collected but not distributed. Upon making such refund,
35       the county treasurer shall charge the fund or funds having received such
36       protested taxes, except that, with respect to that portion of any such re-
37       fund attributable to interest the county treasurer shall charge the county
38       general fund. In the event that the board or court finds that any time
39       delay in making its decision is unreasonable and is attributable to the
40       taxpayer, it may order that no interest or only a portion thereof be added
41       to such refund of taxes.
42             (2) No interest shall be allowed pursuant to paragraph (1) in any case
43       where the tax paid under protest was inclusive of delinquent taxes.

12
  1             (m) Whenever, by reason of the refund of taxes previously received
  2       or the reduction of taxes levied but not received as a result of decreases
  3       in assessed valuation, it will be impossible to pay for imperative functions
  4       for the current budget year, the governing body of the taxing district
  5       affected may issue no-fund warrants in the amount necessary. Such war-
  6       rants shall conform to the requirements prescribed by K.S.A. 79-2940,
  7       and amendments thereto, except they shall not bear the notation required
  8       by such section and may be issued without the approval of the state board
  9       of tax appeals. The governing body of such taxing district shall make a tax
10       levy at the time fixed for the certification of tax levies to the county clerk
11       next following the issuance of such warrants sufficient to pay such war-
12       rants and the interest thereon. All such tax levies shall be in addition to
13       all other levies authorized by law.
14             (n) The county treasurer shall disburse to the proper funds all por-
15       tions of taxes paid under protest and shall maintain a record of all portions
16       of such taxes which are so protested and shall notify the governing body
17       of the taxing district levying such taxes thereof and the director of ac-
18       counts and reports if any tax protested was levied by the state.
19             (o) This statute shall not apply to the valuation and assessment of
20       property assessed by the director of property valuation and it shall not be
21       necessary for any owner of state assessed property, who has an appeal
22       pending before the board of tax appeals, to protest the payment of taxes
23       under this statute solely for the purpose of protecting the right to a refund
24       of taxes paid under protest should that owner be successful in that appeal.
25             Sec.  12 [13]. K.S.A. 79-2925 is hereby amended to read as follows:
26       79-2925. (a) This act shall apply to all taxing subdivisions or municipalities
27       of the state, except: (1) Townships in counties having the county road
28       unit system which have an annual expenditure of less than two hundred
29       dollars $200;
30             (2) any money received by such taxing subdivision or municipality as
31       a gift or bequest;
32             (3) any revolving fund set up for the operation of a municipal airport.
33       Any city, board of park commissioners, or other agency designated and
34       authorized to operate a municipal airport is hereby authorized to set up
35       a revolving fund for use as an operating fund, either out of the budget or
36       out of the receipts from the operation of such airport, in an amount as
37       may be reasonable and necessary as an operating fund for the efficient
38       and business-like operation of such airport. The financial transactions of
39       said the airport shall be audited in accordance with the minimum standard
40       audit program prescribed by the director of accounts and reports as other
41       municipal funds are audited. Profits arising from the operation of the
42       airport after the payment of all necessary operating expenses and the
43       establishment of the revolving fund shall be applied to reduce the tax levy

13
  1       for the budgeted fund under which the operation of such airport is
  2       financed;
  3             (4) any special recreation facilities reserve set up by the board of park
  4       commissioners in any city for the repair, replacement, or addition to the
  5       recreation facilities of such city. The financial transactions of said such
  6       recreation facilities shall be audited in accordance with the minimum
  7       standard audit program prescribed by the director of accounts and reports
  8       as other municipal funds are audited. Profits arising from the coliseum
  9       events fund and the coliseum concessions, after the payment of all nec-
10       essary expenses, and the establishment and maintenance of such special
11       recreation facilities reserve shall be applied to reduce the tax levy for the
12       budget fund under which the operation of such recreation facilities is
13       financed; and
14             (5) any special recreation facilities fund set up by the board of county
15       commissioners for the operation of a county coliseum. The financial trans-
16       actions of the special recreation facilities fund shall be audited in accord-
17       ance with the minimum standard audit program prescribed by the direc-
18       tor of accounts and reports as other municipal funds are audited. Moneys
19       derived from the operation of a county coliseum and deposited in the
20       special recreation facilities fund shall be applied to reduce the tax levy
21       for the budget fund under which the operation of such county coliseum
22       is financed.
23             (b) Whenever the term ``fund'' is used in this act it is intended to
24       have reference to those funds which are authorized by statute to be es-
25       tablished. ``Fund'' is not intended to mean the individual budgeted items
26       of a fund, but is intended to have reference to the total of such individual
27       items.
28             (c) Whenever the term ``director'' is used in this act it shall mean the
29       state director of property valuation.
30             Sec.  13 [14]. K.S.A. 79-2927 is hereby amended to read as follows:
31       79-2927. The governing body of each taxing subdivision or municipality
32       shall meet not later than the first day of August of each year, and shall
33       prepare in writing on forms furnished by the director of accounts and
34       reports a budget itemized and classified by funds and showing amounts
35       to be raised by taxation and from other sources for the ensuing budget
36       year. The budget shall show in parallel columns all amounts and items to
37       be expended for the ensuing budget year and the amounts appropriated
38       for corresponding or other items during the current budget year and
39       amounts expended for corresponding or other items during the preceding
40       budget year. The budget for each fund shall not include any item for
41       sundry or miscellaneous purposes in excess of 10% of the total. Except
42       for school districts, municipal universities and community colleges, the
43       budget for each fund may include a non-appropriated balance of not to

14
  1       exceed 5% of the total of each fund.
  2             The budget shall show in parallel columns the amount of revenue ac-
  3       tually received from taxation and from other sources, with the amount
  4       from each source separately stated for the preceding budget year and the
  5       amount actually received and estimated to be received from taxation and
  6       from sources other than direct taxation with the amount for each source
  7       separately stated for the current budget year and also the amount esti-
  8       mated to be received during the ensuing budget year, with the amount
  9       estimated to be received from each source separately stated. The budget
10       of expenditures for each fund shall balance with the budget of revenues
11       for such fund and that portion of the budget of revenues to be derived
12       from ad valorem property taxation shall not exceed the amount of tax
13       which can be raised by any fund limit or aggregate limit placed upon such
14       fund.
15             Sec.  14 [15]. K.S.A. 79-2929 is hereby amended to read as follows:
16       79-2929. Prior to the filing of the adopted budget with the county clerk,
17       the governing body of each taxing or political subdivision or municipality
18       shall meet for the purpose of answering and hearing objections of tax-
19       payers relating to the proposed budget and for the purpose of considering
20       amendments to such proposed budget. The governing body shall give at
21       least 10 days' notice of the time and place of the meeting by publication
22       in a weekly or daily newspaper of the county having a general circulation
23       therein. Such notice shall include the proposed budget and shall set out
24       all essential items in the budget except such groupings as designated by
25       the director of accounts and reports on a special publication form pre-
26       scribed by the director of accounts and reports and furnished with the
27       regular budget form. The notice of a governing body of any taxing sub-
28       division or municipality having an annual expenditure of $500 or less shall
29       specify the time and place of the meeting required by this section but
30       shall not be required to include the proposed budget of such taxing sub-
31       division or municipality.
32             Sec.  15 [16]. K.S.A. 79-2929a is hereby amended to read as follows:
33       79-2929a. The governing body of any taxing subdivision or municipality
34       which is subject to the budget law provisions of K.S.A. 79-2925 to 79-
35       2936, inclusive, and amendments thereto, which proposes to amend its
36       adopted current budget during the year in which such budget is in effect,
37       shall be subject to the same publication, notice and public hearing
38       requirements as is required by K.S.A. 79-2929, and amendments thereto,
39       for the adoption of the original budget and, in addition thereto, such
40       published budget shall show any proposed changes in the amount of ex-
41       penditures, by fund. Any proposed increase in expenditures shall be bal-
42       anced by previously unbudgeted increases in revenue other than ad va-
43       lorem property taxes. A copy of the adopted amended budget shall be

15
  1       filed with the county clerk and with the director of accounts and reports.
  2             Sec.  16 [17]. K.S.A. 79-2930 is hereby amended to read as follows:
  3       79-2930. (a) Two copies of the budget certificate giving the amount of ad
  4       valorem tax to be levied and the total amount of the adopted budget of
  5       expenditures by fund, along with itemized budget forms for each and
  6       every fund and proof of publication of the notice of budget hearing con-
  7       taining the budget summary shall be presented to the county clerk within
  8       the time prescribed by K.S.A. 79-1801 as amended. Where action has
  9       been taken under any statute to increase the amount of tax to be levied
10       authorized by law, a statement showing the increased amount or tax levy
11       rate voted, or a copy of the charter resolution or ordinance making the
12       change, shall be attached to the budget each year the change is in effect.
13             (b) The county clerk shall make any reductions to the ad valorem tax
14       to be levied, compute the tax levy rates based on the final equalized
15       assessed valuation, and enter such on the budget certificate before at-
16       testing the budget. A copy of all budgets for taxing subdivisions of the
17       county, properly attested, shall be filed with the director of accounts and
18       reports, along with a copy of the tax levy rate summary required of the
19       county treasurer by K.S.A. 79-2002, and amendments thereto. A copy of
20       all county budgets, properly attested, shall be filed with the Kansas
21       association of counties, along with a copy of the tax levy rate sum-
22       mary. A copy of all city budgets, properly attested, shall be filed
23       with the league of Kansas municipalities, along with a copy of the
24       tax levy rate summary.
25             (c) Each fund of the adopted budget certified to the county clerk in
26       no event shall exceed the amount of ad valorem tax to be levied and the
27       proposed expenditures of such fund in the proposed budget as originally
28       published. The governing body of each taxing subdivision shall not certify
29       an amount of ad valorem taxes to be levied that is in excess of any tax
30       levy rate or amount limitations or any aggregate tax levy limitations. The
31       governing bodies, in fixing the amount may take into consideration and
32       make allowance for the taxes which may not be paid, such allowance,
33       however, shall not exceed by more than 5% the percentage of delinquency
34       for the preceding tax year.
35             Sec.  17 [18]. K.S.A. 79-2960 is hereby amended to read as follows:
36       79-2960. Each year, the county treasurer shall estimate the amount of
37       money each political subdivision in such county (including the county as
38       one such political subdivision) will receive from the local ad valorem tax
39       reduction fund. The state treasurer shall advise each county treasurer,
40       prior to June 1 of each year, of the amount of the local ad valorem tax
41       reduction fund of the state that the state treasurer estimates (using the
42       most recent available information) will be paid to such county on January
43       15 and July 15 of the following year. The county treasurer shall before

16
  1       June 15 of each year, notify the treasurer of each political subdivision of
  2       the estimated amount in dollars of the distributions to be made from the
  3       local ad valorem tax reduction fund. Such estimate shall be made in ac-
  4       cordance with K.S.A. 79-2961. Each tangible property tax levying political
  5       subdivision shall set out a local ad valorem tax reduction fund item of
  6       income for one or more tangible property tax funds of general application
  7       (excepting bond and interest funds), in its budget for the current year tax
  8       levies, the amount which the county treasurer has estimated as the share
  9       of such local ad valorem tax reduction funds to be so credited. The di-
10       rector of accounts and reports shall make suitable provision in the budget
11       forms to be used by such subdivisions for listing local ad valorem tax
12       reduction fund income items.
13             Sec.  18 [19]. K.S.A. 79-5111 is hereby amended to read as follows:
14       79-5111. For the purpose of preparing budgets, the county treasurer of
15       each county shall estimate the amount of money the state, county and
16       each taxing subdivision in the county will receive during the ensuing
17       budget year from taxes levied under the provisions of K.S.A. 79-5101 et
18       seq. The amount estimated to be received by the state, county and each
19       taxing subdivision shall be that portion of the total amount estimated to
20       be received by the state, county and all taxing subdivisions which is equal
21       to the proportion which the general ad valorem property tax levies of the
22       state, county and each taxing subdivision in the county utilized in com-
23       puting the county average tax rate for the purposes of K.S.A. 79-5105,
24       and amendments thereto, bear to the sum of all such tax levies of the
25       state, county and all taxing subdivisions in the county made in the pre-
26       ceding year for expenditure in the current year. On or before May 10 of
27       each year the county treasurer of each county shall notify the clerk and
28       the treasurer of each taxing subdivision of the total amount in dollars
29       which it is estimated such subdivision will receive during the ensuing
30       budget year from the receipts from such tax. In the case of the state, such
31       notice shall be given to the director of accounts and reports. The amount
32       estimated to be received by taxing subdivisions from receipts from such
33       tax shall be apportioned among the general ad valorem property tax funds
34       of such subdivisions in the proportion that the amount levied for each
35       such fund in the preceding year for expenditure in the current year bears
36       to the total amount levied for all of such funds in such year and shall be
37       set out separately as an item of income for each such fund. The director
38       of accounts and reports shall make suitable provision in the budget forms
39       to be used by such subdivisions for calculating this apportionment and
40       listing income received from taxes levied under the provisions of this act.
41             Sec.  19 [20]. K.S.A. 12-896, 19-508a, 19-3622, 75-1119, 75-1120,
42       75-1120a, 75-1121, 75-1122, 75-1123, 75-1124, 75-3736, 79-2808, 79-
43       2917, 79-2925, 79-2926, 79-2927, 79-2929, 79-2929a, 79-2930, 79-2960

17
  1       and 79-5111 and K.S.A. 1999 Supp. 12-1927, 71-211, 75-2556 and 79-
  2       2005 are hereby repealed.
  3             Sec.  20 [21]. This act shall take effect and be in force from and after
  4       its publication in the statute book.