An Act concerning rivers belonging to the state; concerning royalties for removal of certain materials from the beds of such rivers; amending K.S.A. 70a-102 and K.S.A. 1995 Supp. 82a-309 and repealing the existing sections.

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

Section 1. K.S.A. 70a-102 is hereby amended to read as follows: 70a- 102. (a) Whenever any person desires to take from any such river any sand, gravel, oil, gas or, mineral, or from any land in such river any hay, timber or other products, such materials from any river owned by the state or from any land in such river, the person shall obtain the consent of the director of taxation and upon such terms of payment to the state of Kansas and under such terms and conditions as the director of taxation determines to be just and proper. Such Compensation for such products shall be paid to the state of Kansas shall be paid at such times and under such terms of supervision as the director of taxation directs and,. With respect to river sand, such the compensation shall be computed at the rate of $.08 $.15 per ton taken removed. The secretary of revenue shall determine, by rule and regulation, the amount of compensation to be paid for other materials removed from rivers owned by the state or from land in such rivers.

(b) No contract shall be entered into giving any person, company or corporation any exclusive privilege of making purchases under this act.

(c) Nothing herein shall prevent the taking without payment therefor of any sand or gravel to be used exclusively for the improvement of public highways or to be used exclusively in the construction of public buildings or for other public use or to be used exclusively by the person taking same for such a person's own domestic use. The secretary of revenue shall determine, by rule and regulation, the amount of compensation to be paid on materials removed from a river or from any land in such river.

Sec. 2. K.S.A. 1995 Supp. 82a-309 is hereby amended to read as follows: 82a-309. (a) One-half Of the net proceeds from the sale of sand products, and no other, taken from the bed of any river which is the property of the state of Kansas, 10% shall be returned as follows:

(1) If the sand products are taken from the bed of the river at a location which is within the boundaries of a drainage district, the board of directors of the district from which the sand products were taken shall be entitled to receive 2/3 of the amount returned and the remaining 1/3 shall be divided among the remaining drainage districts in the county, to be used for bank stabilization or soil conservation, in proportion to the frontage on such river.

(2) If the sand products are taken from the bed of the river at a location which is not within the boundaries of a drainage district, the proceeds attributable to such sand products shall be returned to the coun- ties which have adopted this act and have notified, prior to July 1 following the adoption of this act, the director of taxation of such adoption, and through which such river flows, in proportion to the mileage of the river bank in such county. Moneys paid to a county pursuant to this paragraph shall be disbursed or used as follows:

(A) If there are one or more drainage districts organized under the laws of this state which are located in such county along a river that is the property of the state of Kansas and which operate and maintain river flood control improvements in or along such river, the county shall dis- burse such moneys to each such drainage district, to be used for any lawful purpose bank stabilization or soil conservation, in proportion to each district's frontage on such a river.

(B) If there is no drainage district organized under the laws of this state which is located in such county along a river that is the property of the state of Kansas, the county may use the moneys for construction, operation and maintenance of public improvements located along, in or over such a river bank stabilization or soil conservation.

(b) The unencumbered balance of any moneys which were distrib- uted to a county pursuant to this section as it existed before its amend- ment on July 1, 1995, and which remain in the county treasury on July 1, 1995, shall be distributed in the manner provided by this section as amended on July 1, 1995.

Sec. 3. K.S.A. 70a-102 and K.S.A. 1995 Supp. 82a-309 are hereby repealed.

Sec. 4. This act shall take effect and be in force from and after its publication in the statute book.

Approved March 22, 1996.