CHAPTER 134 SENATE BILL No. 146 An Act relating to the economic development of certain political subdivisions; amending
K.S.A. 2000 Supp. 74-50,115 and repealing the existing section. Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 2000 Supp. 74-50,115 is hereby amended to read
as follows: 74-50,115. (a) A manufacturing business may be eligible for a
sales tax exemption under the provisions of subsection (cc) of K.S.A. 79-
3606, and amendments thereto, if the manufacturing business complies
with the following requirements:

      (1) A manufacturing business shall provide documented evidence of
job expansion involving the employment of at least two additional full-
time employees; and

      (2) a manufacturing business located within the state of Kansas that
has documented evidence of job expansion as provided in paragraph (1),
which relocates in another city or county within the state of Kansas must
receive approval from the secretary prior to qualifying for the sales tax
exemption in subsection (cc) of K.S.A. 79-3606, and amendments thereto,
except that approval by the secretary shall not be required if the manu-
facturing business relocates within the same city.

      (b) A nonmanufacturing business may be eligible for a sales tax ex-
emption under the provisions of subsection (cc) of K.S.A. 79-3606, and
amendments thereto, if the nonmanufacturing business complies with the
following requirements:

      (1) A nonmanufacturing business shall provide documented evidence
of job expansion involving the employment of at least five additional full-
time employees; and

      (2) a nonmanufacturing business located within the state of Kansas
that has documented evidence of job expansion as provided in paragraph
(1), which relocates in another city or county within the state of Kansas
must receive approval from the secretary prior to qualifying for the sales
tax exemption in subsection (cc) of K.S.A. 79-3606, and amendments
thereto, except that approval by the secretary shall not be required if the
nonmanufacturing business relocates within the same city.

      (c) A retail business may qualify for the sales tax exemption under
subsection (cc) of K.S.A. 79-3606, and amendments thereto, if the retail
business complies with the following requirements:

      (1) A retail business shall provide documented evidence of job ex-
pansion involving the employment of at least two additional full-time em-
ployees; and

      (2)  (A) such retail business locates or expands to a city having a pop-
ulation of 2,500 or less, as determined by the latest United States federal
census, or (B) such retail business locates or expands prior to July 1, 2004,
to a location outside a city in a county having a population of 10,000 or
less, as determined by the latest United States federal census.

      (d) Any person constructing, reconstructing, remodeling or enlarging
a facility which will be leased in whole or in part for a period of five years
or more to a business that would be eligible for a sales tax exemption
hereunder if such business had constructed, reconstructed, enlarged or
remodeled such facility or portion thereof itself shall be entitled to the
sales tax exemption under the provisions of subsection (cc) of K.S.A. 79-
3606, and amendments thereto. When such person leases less than the
total facility to an eligible business, a project exemption certificate may
be granted on: (1) The total cost of constructing, reconstructing, remod-
eling or enlarging, the facility multiplied by a fraction given by dividing
the number of leased square feet eligible for the sales tax exemption by
the total square feet being constructed, reconstructed, remodeled or en-
larged; or (2) the actual cost of constructing, reconstructing, remodeling
or enlarging that portion of the facility to be occupied by the eligible
business, as the person may elect.

      (e) A business may qualify for a sales tax exemption under subsection
(cc) of K.S.A. 79-3606, and amendments thereto, without regard to any
of the foregoing requirements of this section if it is certified as a qualified
firm by the secretary of commerce and housing pursuant to K.S.A. 2000
Supp. 74-50,131, and amendments thereto, and is entitled to the corpo-
rate tax credit established in K.S.A. 2000 Supp. 74-50,132, and amend-
ments thereto, or has received written approval for participation and has
participated, during the tax year in which the exemption is claimed, in
training assistance by the department of commerce and housing under
the Kansas industrial training, Kansas industrial retraining or state of Kan-
sas investments in lifelong learning program.

      (f) The secretary may adopt rules and regulations to implement and
administer the provisions of this section.

      New Sec.  2. (a) No political subdivision of this state, including but
not limited to a county, municipality or township, shall enact, maintain
or enforce any ordinance or resolution that would have the effect of con-
trolling the amount of rent charged for leasing private residential or com-
mercial property.

      (b) This section shall not impair the right of any local unit of govern-
ment to manage and control residential property in which such local unit
of government has a property interest.

 Sec.  3. K.S.A. 2000 Supp. 74-50,115 is hereby repealed.
 Sec.  4. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 19, 2001.
__________