An Act concerning cities; relating to the powers and duties of the governing body thereof; relating to public health and safety hazards; amending K.S.A. 12-6a01 and 12-6a02 and K.S.A. 1995 Supp. 12-1756a, 12-1756b, 12-1756c, 12-1756d and 12-1756e and repealing the existing sections.

Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 1995 Supp. 12-1756a is hereby amended to read as follows: 12-1756a. (a) An organization may petition file a petition with the district court for an order for temporary possession of property if:

(1) The property has been declared abandoned pursuant to K.S.A. 12-1753, and amendments thereto;

(2) the organization intends to rehabilitate the property and use the property as housing for low and moderate income persons and families; and

(3) the organization has sent notice to the enforcing officer and the parties in interest of the property, by certified or registered mail, mailed to their last known address and posted on the property at least 30 days but not more than 60 days before the date the petition is filed, of the organization's intent to file a petition for possession under this act K.S.A. 12-1750 through 12-1756e, and amendments thereto.

(b) Upon receipt of a petition pursuant to subsection (a), the govern- ing body shall call and hold a hearing to consider such petition. Notice of such hearing shall be published at least once in the official city news- paper.

(c) At the hearing on the organization's petition, the organization shall submit to the city a plan for the rehabilitation of the property and present evidence that the organization has adequate resources to rehabilitate and thereafter manage the property. For the purpose of developing such a plan, representatives of the organization may be permitted entry onto the property by the city at such times and on such terms as the city deems appropriate.

(d) If the governing body approves the rehabilitation plan, the city may grant temporary possession of the property to the organization.

(e) The organization may enter into leases or other agreements in relation to property it possesses pursuant to this section.

(b) The proceeding shall be commenced by filing a verified petition in the district court in the county in which the property is located. The petition shall state that the conditions specified in subsection (a) exist. All parties in interest of the property shall be named as defendants in the petition. Summons shall be issued and service shall be made pursuant to K.S.A. 60-303, and amendments thereto. Service may be made by publi- cation if the organization with due diligence is unable to make service of summons upon a defendant pursuant to subsection (a)(3) of K.S.A. 60- 307, and amendments thereto.

(c) Any defendant may file as part of such defendant's answer, as an affirmative defense, a plan for the rehabilitation of the property. The court shall grant the defendant 90 days to bring the property into compliance with applicable fire, housing and building codes. The court, for good cause shown, may extend the ninety-day compliance period. If the property is brought into such compliance within the ninety-day period or extension of time thereof, the petition shall be dismissed. If the defendant fails to bring the property into such compliance within the ninety-day period or extension of time thereof, or if the defendant's plan is otherwise insuffi- cient, the defendant's affirmative defense shall be stricken.

(d) At the hearing on the organization's petition, the organization shall submit to the court a plan for the rehabilitation of the property and present evidence that the organization has adequate resources to reha- bilitate and thereafter manage the property. For the purpose of developing such a plan, representatives of the organization may be permitted entry onto the property by the court at such times and on such terms as the court may deem appropriate.

(e) The court shall make its own determination as to whether the property is in fact abandoned consistent with the terms of K.S.A. 12-1750 through 12-1756e, and amendments thereto.

(f) If the court approves the petition, the court shall enter an order approving the rehabilitation plan and granting temporary possession of the property to the organization. The organization, subject to court ap- proval, may enter into leases or other agreements in relation to the prop- erty. Whether the court approves or denies the petition, the organization shall provide the governing body a copy of the order within 10 days of the organization's receipt or knowledge of such order.

Sec. 2. K.S.A. 1995 Supp. 12-1756b is hereby amended to read as follows: 12-1756b. An organization which has possession of property de- clared abandoned pursuant to K.S.A. 12-1753, and amendments thereto, shall file an annual report in relation to pursuant to K.S.A. 12-1756a, and amendments thereto, shall file an annual report with the governing body of the city concerning the rehabilitation and use of the property. The city shall require reports and status dates to be filed as it deems appropriate under the circumstances but no less frequently than once a year. The report shall include statements of all expenditures made by the organi- zation including, but not limited to, payments for the rehabilitation, op- eration and maintenance of and repairs to the property, and for real estate taxes, and payments to mortgagees and lienholders during the preceding year and shall include statements of all income and receipts from the property for the preceding year.

Sec. 3. K.S.A. 1995 Supp. 12-1756c is hereby amended to read as follows: 12-1756c. The owner of property declared abandoned pursuant to K.S.A. 12-1753 of which temporary possession has been transferred to an organization pursuant to K.S.A. 12-1756a, and amendments thereto, shall be entitled to regain possession of the property by petitioning to the district court of the county in which such property is located for resto- ration of possession and, upon notice to the organization for a hearing on such petition. At the hearing, the court shall determine proper compen- sation to the organization for its expenditures, including management fees, based on the organization's reports to the court. The court, in de- termining the proper compensation to the organization, may consider income or receipts received from the property by the organization. After the owner pays the compensation to the organization as determined by the court, the owner shall resume possession of the property, subject to all existing rental agreements whether written or verbal, entered into by the organization.

Sec. 4. K.S.A. 1995 Supp. 12-1756d is hereby amended to read as follows: 12-1756d. If property declared abandoned property pursuant to K.S.A. 12-1753 of which temporary possession has been transferred to an organization pursuant to K.S.A. 12-1756a, and amendments thereto, is sold for unpaid taxes, an organization with temporary possession may redeem the property in the same manner as the owner and amounts paid to redeem the property shall be included as expenditures in the organi- zation's report to the court.

Sec. 5. K.S.A. 1995 Supp. 12-1756e is hereby amended to read as follows: 12-1756e. If an owner of property declared abandoned pursuant to K.S.A. 12-1753 of which temporary possession has been transferred to an organization pursuant to K.S.A. 12-1756a, and amendments thereto, takes no action to regain possession of the property in the five-year period following the granting of temporary possession of the property to the organization, the organization may file a petition for judicial deed and upon due notice to the named defendants and an order may be entered granting a quit-claim judicial deed to the organization providing that the property shall be used for low and moderate income housing for at least a 10-year period after the deed is granted.

New Sec. 6. The enforcing officer shall maintain a list of all organi- zations who are interested in rehabilitating abandoned property and who have requested to be included on such list. The organizations on such list shall be given written notice of abandoned property which may be avail- able for rehabilitation by any such organization. The enforcing officer may require that requests to be included on such list be submitted annually to the enforcing officer.

Sec. 7. K.S.A. 12-6a01 is hereby amended to read as follows: 12- 6a01. For the purpose of this act, the terms defined in this section shall have the meanings ascribed to them as follows:

(a) ``Improvement'' means any type of improvement made under au- thority of this act and the singular may include the plural, and includes reimprovement of a prior improvement.

(b) ``To improve'' means to construct, reconstruct, maintain, restore, replace, renew, repair, install, equip, extend, or to otherwise perform any work which will provide a new facility or enhance, extend or restore the value or utility of an existing facility.

(c) ``Acquire'' means the acquisition of property or interests in prop- erty by purchase, gift, condemnation or other lawful means and may in- clude the acquisition of existing property and improvements already owned by the city and previously financed by the issuance of revenue bonds, such acquisition to constitute a refunding of such revenue bonds and no additional refunding authority shall be required but nothing herein shall be construed to require a holder of any such revenue bonds to surrender his or her bonds for refunding unless the provisions of such bonds allow the redemption thereof.

(d) ``Cost'' means all costs necessarily incurred for the preparation of preliminary reports, the preparation of plans and specifications, the prep- aration and publication of notices of hearings, resolutions, ordinances and other proceedings, necessary fees and expenses of consultants and inter- est accrued on borrowed money during the period of construction to- gether with the cost of land, materials, labor and other lawful expenses incurred in planning and doing any improvement and may include a charge of not to exceed five percent (5%) 5% of the total cost of an improvement or the cost of work done by the city to reimburse the city for the services rendered by the city in the administration and supervision of such improvement by its general officers and where property and im- provements already owned by the city and previously financed by the issuance of revenue bonds is acquired the cost shall include not to exceed the principal amount of such outstanding revenue bonds plus the amount of matured interest, interest maturing within ninety (90) 90 days, and the amount of any call premium or purchase premium required.

(e) ``Consultant'' means engineers, architects, planners, attorneys, and other persons deemed competent to advise and assist the governing body in planning and making of improvements.

(f) ``Improvement district'' means an area deemed by the governing body to be benefited by an improvement and subject to special assess- ment for all or a portion of the cost of the improvement.

(g) ``Street'' means street, alley, avenue, boulevard, or other public way or any part thereof.

(h) ``Newspaper'' means the official designated newspaper of the city, or if there is no newspaper published therein or no official newspaper, a newspaper of general circulation in the city authorized to publish legal notices.

(i) ``Asbestos'' means the asbestiform varieties of chrysotile (serpen- tine), crocidolite (riebeckite), amosite (cummingtonitegrunerite), antho- phyllite, tremolite and actinolite.

(j) ``Asbestos-containing material'' means any material or product which contains more than 1% asbestos.

(k) ``Asbestos control project'' means any activity which is necessary or incidental to the control of asbestos-containing material in any munic- ipally owned building or privately owned building, which has been de- clared by the governing body to be for a public purpose and a benefit to the general health, safety and welfare or to the general economic devel- opment of the area within such privately owned buildings are located. Such project shall include, but not by way of limitation, any activity un- dertaken for:

(1) The removal or encapsulation of asbestos-containing material;

(2) any remodeling, renovation, replacement, rehabilitation or other restoration necessitated by such removal or encapsulation;

(3) conducting inspections, reinspections and periodic surveillance of buildings;

(4) performing response actions;

(5) developing, implementing and updating operations and mainte- nance programs and management plans; and

(6) all preparation, cleanup, disposal and postabatement clearance testing measures associated with such activities.

(l) ``Lead control project'' means any activity which is necessary or incidental to the control of any lead hazard in any municipally owned building or privately owned building, which has been declared by the governing body to be for a public purpose and a benefit to the general health, safety and welfare or to the general economic development of the area within such privately owned buildings are located. Such project shall include, but not by way of limitation, any activity undertaken for:

(1) The removal of lead-based paint and lead-contaminated dust, the permanent containment or encapsulation of lead-based paint, the replace- ment of lead-painted surfaces or fixtures, and the removal or covering of lead contaminated soil;

(2) any remodeling, renovation, replacement, rehabilitation or other restoration necessitated by such removal or encapsulation;

(3) conducting inspections, reinspections and periodic surveillance of buildings;

(4) performing response actions;

(5) developing, implementing and updating operations and mainte- nance programs and management plans; and

(6) all preparation, cleanup, disposal and postabatement clearance testing measures associated with such activities.

(m) ``Lead hazard'' means any condition which causes exposure to lead that would result in adverse human health effects.

Sec. 8. K.S.A. 12-6a02 is hereby amended to read as follows: 12- 6a02. As a complete alternative to all other methods provided by law, the governing body of any city is hereby authorized to make, or cause to be made, municipal works or improvements which confer a special benefit upon property within a definable area of the city and may levy and collect special assessments upon property in the area deemed by the governing body to be benefited by such improvement for special benefits conferred upon such property by any such municipal work or improvement and to provide for the payment of all or any part of the cost of the work or improvement out of the proceeds of such special assessments as herein- after provided. Such work or improvements may include the following without limitation because of enumeration:

(a) Acquisition of property or interest in property when necessary for any of the purposes authorized by this act.

(b) To open, widen and extend streets and otherwise to improve pav- ing and other surfacing, gutters, curbs, sidewalks, crosswalks, driveway entrances and structures, drainage works incidental thereto, and service connections from sewer, water, gas and other utility mains, conduits, or pipes necessarily lying within curb lines.

(c) To improve main and lateral storm water drains and sanitary sewer systems, and appurtenances thereto.

(d) To improve street lights and street lighting systems.

(e) To improve waterworks systems.

(f) To improve parks, playgrounds and recreational facilities.

(g) To improve any street or other facility by landscaping the park- ings, planting of trees, shrubs, and other perennial plants.

(h) To improve dikes, levees and other flood control works, gates, lift stations, bridges and streets appurtenant thereto.

(i) To improve vehicle and pedestrian bridges, overpasses, and tun- nels.

(j) To improve retaining walls and area walls on public ways or land abutting thereon.

(k) To improve property for off-street parking facilities including con- struction and equipment of buildings thereon for said such purpose.

(l) Asbestos control projects and lead control projects.

Sec. 9. K.S.A. 12-6a01 and 12-6a02 and K.S.A. 1995 Supp. 12-1756a, 12-1756b, 12-1756c, 12-1756d and 12-1756e are hereby repealed.

Sec. 10. This act shall take effect and be in force from and after its publication in the statute book.

Approved May 11, 1996.