CHAPTER 88
HOUSE BILL No. 2565
(Amended by Chapter 147)
An  Act relating to Washburn University of Topeka; concerning the financing and govern-
ance thereof; amending K.S.A. 12-198, 13-13a04, 13-13a05, 13-13a18 and 13-13a25 and
K.S.A. 1998 Supp. 13-13a23 and repealing the existing sections.

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

      New Section  1. The board of regents of Washburn University of To-
peka may adopt a resolution imposing a countywide retailers' sales tax
within Shawnee county. Such resolution shall be published once each
week for two consecutive weeks in the Shawnee county official newspa-
per. The rate of any such tax shall not exceed .65%. Such university is
prohibited from administering or collecting such tax locally, but shall util-
ize the services of the state department of revenue to administer, enforce
and collect such tax. Except as otherwise provided by section 2, such tax
shall be identical in its application and exemptions therefrom to the Kan-
sas retailers' sales tax act, and all laws and rules and regulations of the
state department of revenue relating to the Kansas retailers' sales tax act
shall apply to such tax insofar as the same may be made applicable.

      (b) The secretary of revenue is authorized to administer, enforce and
collect the university's retailers' sales tax and to adopt such rules and
regulations necessary for the efficient and effective administration, en-
forcement and collection thereof. The state director of taxation shall cause
such taxes to be collected within the boundaries of Shawnee county at
the same time and in the same manner provided for the collection of the
state retailers' sales tax. All moneys collected by the director of taxation
pursuant to the provisions of this section shall be credited to the Wash-
burn University of Topeka retailers' sales tax fund, which fund is hereby
established in the state treasury. Any refund due on any tax collected
pursuant to this section shall be paid out of the sales tax refund fund and
reimbursement to such fund shall be made by the director of taxation
from collections of the university's sales tax revenue. All moneys collected
pursuant to this section for such university shall be remitted at least quar-
terly by the state treasurer to the treasurer of such university.

      (c) All revenue received by Washburn University of Topeka from its
retailers' sales tax shall be used solely for the purpose of financing its
operations regarding all support activities described by K.S.A. 13-13a18,
and amendments thereto.

      (d) If within 30 days of the final publication of a resolution adopted
pursuant to subsection (a), a petition signed by a number of electors of
the county equal to not less than 5% of the number of qualified electors
of the county shall be filed in the office of the county election officer
demanding that such resolution be submitted to a vote of the electors, it
shall not take effect until submitted to a referendum and approved by
the electors. An election if called, shall be called within 30 days and held
within 45 days after the filing of the petition. The board, by resolution,
shall call the election and fix the date. Such resolution shall be published
once each week for two consecutive weeks in the official county news-
paper, and the election shall be conducted in the same manner as are
elections for officers of such county. Such election may be conducted in
accordance with the provisions of the mail ballot election act. The prop-
osition shall be: ``Shall Washburn University of Topeka be authorized to
impose a countywide sales tax not to exceed .65% in Shawnee county for
purposes of eliminating 15 mills of ad valorem property taxes now levied
by the university and eliminating the payment of out-district tuition by
the townships within Shawnee county to the university?''

      (e) The provisions of K.S.A. 12-191 and 12-191a, and amendments
thereto, insofar as may be made applicable, shall apply to sales subject to
the tax imposed pursuant to this section.

      New Sec.  2. The following sales shall be subject to the taxes levied
by Washburn University of Topeka under the provisions of section 1, and
amendments thereto:

      (a) All sales of natural gas, electricity, heat and water delivered
through mains, lines or pipes to residential premises for noncommercial
use by the occupant of such premises and all sales of natural gas, elec-
tricity, heat and water delivered through mains, lines or pipes for agri-
cultural use;

      (b) all sales of propane gas, LP-gas, coal, wood and other fuel sources
for the production of heat or lighting for noncommercial use of an oc-
cupant of residential premises; and

      (c) all sales of intrastate telephone and telegraph services for non-
commercial use.

      Sec.  3. K.S.A. 13-13a04 is hereby amended to read as follows: 13-
13a04. (a) Subject to the provisions of subsection (c), the board of regents
of a municipal university which has a taxing district that includes only
territory lying within the corporate limits of the city where the university
is located, shall consist of nine members as follows:

      (1) Four members shall be appointed by the mayor with the approval
of the governing body of the city in which the university is located and
shall hold office as provided in K.S.A. 13-13a05 and amendments thereto.
Members appointed under this provision shall be residents of the city in
which the university is located, one from each of the three districts from
which state senators are elected by residents of the city, and one from
the city at large.

      (2) Three members shall be appointed by the governor and shall hold
office as provided in K.S.A. 13-13a06 and amendments thereto. Members
appointed under this provision shall be residents of the state.

      (3) One member shall be the mayor of the city in which the university
is located or another member of the governing body of the city who is
selected by the mayor.

      (4) One member shall be a member of the state board of regents
selected by the state board at its regular meeting in September of each
year, to serve as a member of the board of regents of the municipal
university for the ensuing year. Resignations from the board of regents
of the municipal university shall be made to the chairperson of the board.
The chairperson shall report any vacancy occurring in the board to the
authority which appointed the member whose position is vacant. All va-
cancies shall be filled, by the authority which appointed the member
whose position is vacant, by the appointment of a successor to hold office
for the remainder of the unexpired term and until a successor is appointed
and qualified.

      (b) The board of regents of a municipal university which has a taxing
district for retailers' sales tax purposes that includes the entire territory
of the county where the university is located, shall consist of 10 nine
members as follows:

      (1) Four Three members shall be appointed by the mayor with the
approval of the governing body of the city in which the university is lo-
cated and shall hold office as provided in K.S.A. 13-13a05 and amend-
ments thereto. Members appointed under this provision shall be residents
of the city in which the university is located, one from each of the three
districts from which state senators are elected by residents of the city,
and one from the city at large.

      (2) Two Three members shall be appointed by the governor and shall
hold office as provided in K.S.A. 13-13a06 and amendments thereto. The
members appointed under this provision shall be residents of the state.

      (3) Two members One member shall be appointed by the board of
county commissioners of the county in which the university is located and
shall hold office as provided in K.S.A. 13-13a06 and amendments thereto.
Members The member appointed under this provision shall be residents
a resident of the county but shall reside outside the city in which the
university is located.

      (4) One member shall be the mayor of the city in which the university
is located or another member of the governing body of the city who is
selected by the mayor.

      (5) One member shall be a member of the state board of regents
selected by the state board at its regular meeting in September of each
year, to serve as a member of the board of regents of the municipal
university for the ensuing year.

      Resignations from the board of regents of the municipal university shall
be made to the chairperson of the board. The chairperson shall report
any vacancy occurring in the board to the authority which appointed the
member whose position is vacant. All vacancies shall be filled, by the
authority which appointed the member whose position is vacant, by the
appointment of a successor to hold office for the remainder of the unex-
pired term and until a successor is appointed and qualified.

      (c) The board of regents of the municipal university shall be com-
posed of the members who are holding office and serving on the board
on the effective date of this act until their successors are appointed.
Thereafter the membership of the board of regents shall be composed as
provided for in subsection (a) or subsection (b).

      Sec.  4. K.S.A. 13-13a05 is hereby amended to read as follows: 13-
13a05. On the effective date of this act, the governing body of the city
shall appoint two members of the board of regents as successors to two
of the members who were appointed by the governing body prior to the
effective date of this act. The term (a) Whenever the board of regents of
a municipal university levies a countywide retailers' sales tax pursuant to
of the member appointed to serve for a term expiring June 30, 1982, shall
expire on the effective date of this act. The successor member shall be a
resident of the 18th state senatorial district and shall serve for a term
expiring June 30, 1983. The successor member to the member whose
term expired June 30, 1981, shall be a resident of the 19th state senatorial
district and shall serve for a term expiring June 30, 1984. The term of the
members appointed by the governing body prior to the effective date of
this act to serve for terms expiring June 30, 1983, and June 30, 1984,
respectively, shall expire June 30, 1982. On July 1, 1982, the governing
body shall appoint two successor members to serve for terms expiring
June 30, 1985. One successor member shall be a resident of the 20th
state senatorial district and the other successor member shall be a resident
of the city at large. Upon the expiration of the terms of the four members
first appointed after the effective date of this act, each successor member
shall section 1, the term of the member appointed from the city-at-large
shall lapse. The terms of office of the members from the 18th, 19th and
20th state senatorial districts appointed by the mayor of the city prior to
the levying of a countywide retailer's sales tax shall expire on the dates of
their existing terms respectively. Each successor member shall be ap-
pointed and hold office for a term of four years and until a successor has
been appointed and qualified.

      (b) Whenever the board of regents of a municipal university levies a
countywide retailers' sales tax pursuant to the provisions of this act the
board of county commissioners of the county in which the university is
located shall appoint a member of the board of regents who is a resident
of the county but not of the city. The term of office of the appointee shall
be for a term of four years and until a successor has been appointed and
qualified. Each successor member shall be appointed and hold office for
a term of four years and until a successor has been appointed and qual-
ified.

      Sec.  5. K.S.A. 13-13a18 is hereby amended to read as follows: 13-
13a18. Such (a) The board of regents shall each year, of a municipal
university which has not levied a retailers' sales tax under the provisions
of this act may annually levy a tax for the support of such municipal
university, including buildings, equipment and repairs of the buildings
and equipment of such municipal university, insurance, and may include
provisions for retirement annuities and pensions, group disability income
insurance, group term insurance and group hospitalization and major
medical insurance for the benefit of instructors and other employees, and
may establish a procedure whereby the instructors and other employees
of such municipal university may, subject to rules and regulations of such
board of regents, request such board of regents in writing for reductions
in compensation and the contribution thereof for tax sheltered annuities
as permitted under the provisions of the internal revenue code of 1954,
as amended, and including such amount as shall be necessary for the
annual operation of such municipal university and for the retirement of
bonds issued as provided in K.S.A. 13-13a23, or acts amendatory thereof
and amendments thereto, and for a sinking fund to retire such bonds, not
exceeding in any one year five (5) mills on all taxable tangible property
within the taxing district of such municipal university. Whenever such
board of regents shall determine that the tax levied for the purposes
specified in this section for the prior year will be insufficient to finance
such purposes for the current year, such board may adopt a resolution
declaring it necessary to increase such levy in an amount not to exceed
one (1) mill in any one year up to an amount which together with the
amount of the previous levy shall not exceed a total of seven (7) mills in
any year. Such resolution shall state the total amount of the tax to be
levied for such purposes and shall be published once each week for three
(3) consecutive weeks in a newspaper having general circulation in the
city in which such municipal university is located. Whereupon such in-
creased levy may be made for the current year and each succeeding year
unless a petition requesting an election upon the proposition to increase
the tax levy in excess of the rate of such levy in the prior year, signed by
electors equal in number to not less than five percent (5%) 5% of the
qualified electors who voted at the last preceding regular city election, as
shown by the poll books, is filed with the county election officer within
sixty (60) 60 days following the date of the last publication of the reso-
lution. In the event a valid petition is filed, no such increased levy shall
be made without such proposition having been submitted to and having
been approved by a majority of the electors voting at an election called
and held thereon. All such elections shall be called and held in the manner
prescribed for the calling and holding of elections upon the question of
the issuance of bonds under the general bond law. The president and
clerk of such board of regents shall, on or before August 25, certify such
levy to the county clerk who is hereby authorized and required to place
the same on the tax roll of said county to be collected by the treasurer of
the county as are other taxes. The proceeds of such levy shall be paid
over by the county treasurer to the treasurer of such board of regents,
subject to the order of said board of regents. The tax levy authorized by
this section shall be in addition to the tax levy authorized by K.S.A. 13-
13a23, or acts amendatory thereof.

      (b) The board of regents which has levied a countywide retailers' sales
tax under the provisions of this act may use the proceeds of such sales tax
for the same purposes that the revenue from a tax on tangible property
may be used.

      (c) Whenever the board of regents of a municipal university imposes
a countywide retailers' sales tax there shall be created within the univer-
sity's chart of accounts the sales tax smoothing fund. There shall be cred-
ited or transferred to such fund amounts received by the university from
sales tax revenue in any year which are in excess of such tax revenues
budgeted for expenditure for such year. Expenditures and transfers from
such fund shall be made for the same purposes prescribed by subsection
(b) in any year when estimated sales tax revenue is less in any such year
than that budgeted for such year.

      Sec.  6. K.S.A. 1998 Supp. 13-13a23 is hereby amended to read as
follows: 13-13a23. (a) The board of regents of any municipal university
heretofore or hereafter created and established under the provisions of
article 13a of chapter 13 of the Kansas Statutes Annotated, and amend-
ments thereto, shall have the continuing right, power and authority, by
resolution, to issue bonds of such municipal university from time to time,
for the purpose of acquiring real estate, erecting buildings or additions
to present buildings and the purchase of equipment for such buildings
and for refunding any indebtedness of such university. There shall not be
outstanding at any one time an aggregate of bonds of the municipal uni-
versity in excess of 2% of the assessed valuation of the taxable tangible
property within the taxing district of the municipal university corporate
limits of the city in which the university is located. The bonds shall bear
interest at a rate not exceeding the maximum rate of interest prescribed
by K.S.A. 10-1009 and amendments thereto and shall mature not later
than 30 years from date of issuance.

      (b) Provisions for the payment of bonds issued under this section shall
be made by the establishment of a sinking fund to be created out of the
proceeds derived from the taxes levied each year by the board of regents
of such municipal university pursuant to subsection (c) of this section.

      (c) The board of regents is hereby authorized to levy taxes on all
taxable tangible property within the taxing district of the municipal uni-
versity the corporate limits of the city in which the university is located
to provide for (1) the sinking fund established under subsection (b); (2)
the construction, reconstruction, or equipping of new or existing build-
ings; and (3) for any other capitalized equipment or permanent improve-
ments. Except as provided in subsection (d), such taxes shall be in addition
to all taxes which may be levied by the board of regents pursuant to K.S.A.
13-13a18 and amendments thereto and shall not exceed 3 mills in any
one year.

      (d) The board of regents which has levied a retailers' sales tax under
the provisions of this act shall levy no other property tax except as au-
thorized by K.S.A. 13-13a23, and amendments thereto, and K.S.A. 75-
6111, and amendments thereto.

      (d) (e) The proceeds from the tax levy authorized under this section,
other than that portion of the proceeds for the sinking fund, may be
accumulated from year to year and expended for the construction, recon-
struction or equipping of new or existing buildings, permanent improve-
ments or capitalized equipment or for any one or more of such purposes,
and shall not be subject to the provisions of the budget laws, except that
in making the budget of the municipal university the amount so accu-
mulated and the amount expended thereof shall be shown therein for the
information of the taxpayers.

      Sec.  7. K.S.A. 13-13a25 is hereby amended to read as follows: 13-
13a25. As used in K.S.A. 13-13a25 through 13-13a34:

      (a) ``Board of levy'' means the board of county commissioners of every
county in which there is not located a municipal university and the town-
ship trustee, township clerk and township treasurer, acting as a board, of
every township within every county in which there is located a municipal
university and the township trustee, township clerk and township trea-
surer, acting as a board, of every township within every county in which
there is located a municipal university, except that board of levy shall not
include a township within a county in which there is located a municipal
university which has levied a countywide retailer's sales tax.

      (b) ``Municipal university'' means a municipal university established
under the provisions of article 13a of chapter 13 of Kansas Statutes An-
notated.

      (c) ``Municipal university district'' means the taxing district of a mu-
nicipal university.

      (d) ``Taxing subdivision'' means every county in which there is not
located a municipal university and every township within every county in
which there is located a municipal university and every township within
every county in which there is located a municipal university, except that
taxing subdivision shall not include a township within a county in which
there is located a municipal university which has levied a countywide
retailer's sales tax.

      (e) ``State board'' means the state board of education.

      Sec.  8. K.S.A. 12-198 is hereby amended to read as follows: 12-198.
(a) A compensating use tax for the privilege of using or storing within a
city or county any vehicle which is required to be registered under the
provisions of article 1 of chapter 8 of the Kansas Statutes Annotated, and
amendments thereto, or any vessel, as defined by K.S.A. 82a-902 82a-
802, and amendments thereto, is hereby imposed by every city or, county
or municipal university imposing a retailers' sales tax. The rate of any
such tax shall be fixed at the same rate as such city's or, county's or
university's retailers' sales tax. Any city or, county or municipal university
imposing a compensating use tax is prohibited from administering or col-
lecting such tax locally, but shall utilize the services of the state depart-
ment of revenue to administer, enforce and collect such tax. Such tax
shall be identical in its application and exemptions therefrom to the Kan-
sas compensating tax, and all laws and rules and regulations of the state
department of revenue relating to the Kansas compensating tax shall ap-
ply to such local compensating use tax insofar as the same may be made
applicable.

      (b) The secretary of revenue is authorized to administer, enforce and
collect a city's or, county's or municipal university's compensating use tax
and to adopt such rules and regulations necessary for the efficient and
effective administration, enforcement and collection thereof. The state
director of taxation shall cause such taxes to be collected within the
boundaries of such taxing subdivision at the same time and in the same
manner provided for the collection of the state compensating use tax. All
moneys collected by the director of taxation pursuant to the provisions of
this section shall be credited to the city and county compensating use tax
fund or to the municipal university compensating use tax fund, which
fund is funds are hereby established in the state treasury. Any refund due
on any city's or, county's municipal university's compensating use tax
collected pursuant to this section shall be paid out of the sales tax refund
fund and reimbursement to such fund shall be made by the director of
taxation from collections of local compensating use tax revenue. All mon-
eys collected pursuant to this section for a city or county shall be remitted
at least quarterly by the state treasurer to the treasurer of such city or,
county or university.

      (c) All revenue received by any county treasurer from a countywide
compensating use tax shall be apportioned among the county and each
city located in such county in the same manner as provided in K.S.A. 12-
192, and amendments thereto, for the apportionment of revenue received
from a countywide retailers' sales tax.

 Sec.  9. K.S.A. 12-198, 13-13a04, 13-13a05, 13-13a18 and 13-13a25
and K.S.A. 1998 Supp. 13-13a23 are hereby repealed.

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

Approved April 9, 1999.
 Published in the Kansas Register April 15, 1999.