Ch. 96             1997 Session Laws of Kansas             331

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

Section 1. K.S.A. 1996 Supp. 74-50,131 is hereby amended to read
as follows: 74-50,131. (a) As used in this act: ``Qualified firm'' means a
for-profit business establishment, subject to state income, sales or prop-
erty taxes, identified under the manufacturing standard industrial classi-
fication codes as in effect July 1, 1993, major groups 20 through 39, major
groups 40 through 49, and major groups 60 through 89, or is identified
as a corporate or regional headquarters or back-office operation of a na-
tional or multi-nation corporation regardless of SIC code.

(b) In the case of firms in major groups 40 through 49, and major
groups 60 through 89, the business establishment must also demonstrate
the following:

(1) More than one-half of its gross revenues are a result of sales to
commercial or governmental customers outside the state of Kansas; or

(2) more than one-half of its gross revenues are a result of sales to
Kansas manufacturing firms within major groups 20 through 39; or

(3) more than one-half of its gross revenues are a result of a combi-
nation of sales described in (1) and (2).

(c) For purposes of determining whether one of the average wage
options described in subsection (d) below is satisfied, business establish-
ments located within a metropolitan county, as defined in K.S.A. 1996
Supp. 74-50,114, will be compared only to other businesses within that
metropolitan county, and business establishments located outside of a met-
ropolitan county will be compared to businesses within an aggregation of
counties representing the business establishment's region of the state,
which regional aggregation will exclude metropolitan counties. Such ag-
gregation shall be determined by the department of commerce and
housing.

(c) (d) Additionally, a business establishment having met the criteria
as established in subsection (a) or (b) , and using the comparison method
described in subsection (c), must meet one of the following criteria:

(1) The establishment with 500 or fewer full-time equivalent em-
ployees will provide an average wage that is above the average wage paid

332             1997 Session Laws of Kansas             Ch. 96

by all firms with 500 or fewer full-time equivalent employees in the same
county which share the same two-digit standard industrial classification
code.

(2) The establishment with 500 or fewer full-time equivalent em-
ployees is the sole firm within its two-digit standard industrial classifica-
tion code in the county in which it is located which has 500 or fewer full-
time equivalent employees.

(3) The establishment with more than 500 full-time equivalent em-
ployees will provide an average wage that is above the average wage paid
by firms with more than 500 full-time equivalent employees in the same
county which share the same two-digit standard industrial classification
code.

(4) The establishment with more than 500 full-time equivalent em-
ployees is the sole firm within its two-digit standard industrial classifica-
tion code in the county in which it is located which has 500 or more full-
time equivalent employees, in which event it shall either provide an
average wage that is above the average wage paid by all firms with 500
or fewer full-time equivalent employees in the same county which share
the same two-digit standard industrial classification code, or be the sole
firm with within its two-digit standard industrial classification code in the
county.

(e) As an alternative to the requirements of subsections (c) and (d), a
firm having met the requirements of subsections (a) or (b), may qualify,
if excluding taxable disbursements to company owners, the business es-
tablishment's annual average wage must be greater than or equal to 1.5
times the aggregate average wage paid by industries covered by the em-
ployment security law based on data maintained by the secretary of hu-
man resources.

(5) (f) For the purposes of this subsection section, the number of full-
time equivalent employees shall be determined by adding the number of
full-time employees to the number of hours worked by part-time em-
ployees divided by 40.

(d) (g) The secretary of commerce and housing shall certify annually
to the secretary of revenue that a firm meets the criteria for a qualified
firm and that the firm is eligible for the benefits and assistance provided
under this act. The secretary of commerce and housing shall publish rules
and regulations for the implementation of this act. Such rules and regu-
lations shall include, but not be limited to:

(1) A definition of ``training and education'' for purposes of K.S.A.
1996 Supp. 74-50,132 and amendments thereto.

(2) Establishment of eligibility requirements and application proce-
dures for expenditures from the high performance incentive fund created
in K.S.A. 1996 Supp. 74-50,133 and amendments thereto.

(3) Establishment of approval guidelines for private consultants au-

Ch. 96             1997 Session Laws of Kansas             333

thorized pursuant to K.S.A. 1996 Supp. 74-50,133 and amendments
thereto.

(4) Establishment of guidelines for prioritizing business assistance
programs pursuant to K.S.A. 1996 Supp. 74-50,133 and amendments
thereto.

(5) A definition of ``commercial customer'' for the purpose of K.S.A.
1996 Supp. 74-50,133 and amendments thereto.

(6) A definition of ``headquarters'' for the purpose of K.S.A. 1996
Supp. 74-50,133 and amendments thereto.

Sec. 2. K.S.A. 1996 Supp. 74-50,134 is hereby amended to read as
follows: 74-50,134. During fiscal year 1997 1998, Kansas, Inc. shall com-
mission an analysis of this program's impact on job training and retraining.
program. Within Kansas, Inc.'s discretion, the analysis shall evaluate all
aspects of the program, and particularly the impact of program incentives
on:

(a) Job training and retraining;

(b) capital investment and related job creation;

(c) usage of consulting services to improve overall business
operations;

(d) export of goods and services outside the state; and

(e) usage of other business assistance programs administered by the
department of commerce and housing, the Kansas technology enterprise
corporation and the mid-America manufacturing technology center. The
analysis shall include a recommendation for continuation, discontinuation
or alteration of the program. The analysis shall be reported to the joint
committee on economic development.

Sec. 3. K.S.A. 1996 Supp. 74-50,131 and 74-50,134 are hereby re-
pealed.

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

Approved April 10, 1997.