CHAPTER 167 HOUSE BILL No. 2597 (Amends Chapters 5, 53, 57, 62, 78, 87, 92, 103 and 126) An Act concerning state moneys; providing for the reconciliation of amendments to certain
sections of the Kansas Statutes Annotated; amending K.S.A. 75-4221, as amended by
section 1 of 2001 House Bill No. 2169, 79-32,105, as amended by section 4 of 2001
Senate Bill No. 44 and 79-41a03, as amended by section 1 of 2001 Senate Bill No. 42
and K.S.A. 2000 Supp. 9-1111b, as amended by section 41 of 2001 Senate Bill No. 15,
9-1804, as amended by section 14 of 2001 House Bill No. 2482, 65-3424b, as amended
by section 245 of 2001 Senate Bill No. 15, 65-3424d, as amended by section 246 of 2001
Senate Bill No. 15, 65-3424k, as amended by section 6 of 2001 House Bill No. 2131,
66-1,139a, as amended by section 273 of 2001 Senate Bill No. 15, 79-3425, as amended
by section 454 of 2001 Senate Bill No. 15, 79-3620, 79-3620, as amended by section 10
of this act, 79-3710, 79-3710, as amended by section 12 of this act and repealing the
existing sections; also repealing K.S.A. 17-7515, as amended by section 66 of 2001 Senate
Bill No. 15, 65-770, as amended by section 225 of 2001 Senate Bill No. 15, 72-6505, as
amended by section 292 of 2001 Senate Bill No. 15, 79-32,105, as amended by section
448 of 2001 Senate Bill No. 15 and 79-41a03, as amended by section 463 of 2001 Senate
Bill No. 15 and K.S.A. 2000 Supp. 2-1011, as amended by section 9 of 2001 Senate Bill
No. 15, 8-1,112, as amended by section 30 of 2001 Senate Bill No. 15, 9-1111b, as
amended by section 8 of 2001 House Bill No. 2482, 9-1804, as amended by section 45
of 2001 Senate Bill No. 15, 65-708a, as amended by section 223 of 2001 Senate Bill No.
15, 65-750, as amended by section 224 of 2001 Senate Bill No. 15, 65-3424b, as amended
by section 3 of 2001 House Bill No. 2131, 65-3424d, as amended by section 4 of 2001
House Bill No. 2131, 65-3424k, as amended by section 247 of 2001 Senate Bill No. 15,
66-1,139, as amended by section 272 of 2001 Senate Bill No. 15, 66-1,139a, as amended
by section 15 of 2001 House Bill No. 2291, 66-1a01, as amended by section 275 of 2001
Senate Bill No. 15, 79-3425, as amended by section 1 of 2001 House Bill No. 2011, 79-
3620, as amended by section 16 of 2001 Substitute for House Bill No. 2005, 79-3620,
as amended by section 460 of 2001 Senate Bill No. 15, 79-3710, as amended by section
18 of 2001 Substitute for House Bill No. 2005, and 79-3710, as amended by section 461
of 2001 Senate Bill No. 15.
Be it enacted by the Legislature of the State of Kansas:

Section 1. On July 1, 2001, K.S.A. 2000 Supp. 9-1111b, as amended
by section 41 of 2001 Senate Bill No. 15, is hereby amended to read as
follows: 9-1111b. A bank making application to the state banking board
or the commissioner for approval of a branch bank shall pay to the ~~state~~
~~bank~~ commissioner a fee, in an amount established by rules and regula-
tions adopted by the commissioner, to defray the expenses of the board,
commissioner or other designees in the examination and investigation of
the application. The commissioner shall remit all amounts received under
this section to the state treasurer in accordance with the provisions of
K.S.A. 75-4215, and amendments thereto. Upon receipt of each such
remittance, the state treasurer shall deposit the entire amount in the state
treasury to the credit of a separate special account in the state treasury
for each application. The moneys in each such account shall be used only
to pay the expenses of the board, commissioner or other designees in the
examination and investigation of the application to which it relates and
any unused balance shall be transferred to the bank commissioner fee
fund.

Sec. 2. On July 1, 2001, K.S.A. 2000 Supp. 9-1804, as amended by
section 14 of 2001 House Bill No. 2482, is hereby amended to read as
follows: 9-1804. (a) No bank or trust company incorporated under the
laws of this state shall change its place of business, from one city or town
to another or from one location to another within the same city or town,
without prior approval. Any such bank or trust company desiring to
change its place of business shall file written application with the office
of the state bank commissioner in such form and containing such infor-
mation as the board and the commissioner shall require. Notice of the
proposed relocation shall be published in a newspaper of general circu-
lation in the county where the main bank or trust company is currently
located and in the county to which the bank or trust company proposes
to relocate. The notice shall be in the form prescribed by the commis-
sioner and at a minimum shall contain the name and address of the ap-
plicant bank or trust company, the address of the proposed new location
and a solicitation for written comments. The notice shall be published on
the same day for two consecutive weeks and provide for a comment pe-
riod of not less than 10 calendar days after the date of the second pub-
lication. The applicant shall provide proof of publication to the commis-
sioner.

(b) If the applicant is an eligible bank or an eligible trust company,
the commissioner shall examine and investigate the application. If the
commissioner determines:

(1) There is a reasonable probability of usefulness and success of the
bank or trust company in the proposed location; and

(2) the applicant bank's or trust company's financial history and con-
dition is sound, the application shall be approved, otherwise, it shall be
denied.

(c) Within 15 days after any final action of the commissioner approv-
ing or disapproving an application, the applicant, or any adversely affected
or aggrieved person who provided written comments during the specified
comment period, may request a hearing with the state banking board.
Upon receipt of a timely request, the board shall conduct a hearing in
accordance with the provisions of the Kansas administrative procedure
act. Any decision of the state banking board is subject to review in ac-
cordance with the act for judicial review and civil enforcement of agency
actions.

(d) If a bank does not meet the definition of an eligible bank or a
trust company does not meet the definition of an eligible trust company,
the state banking board shall examine and investigate the application. If
the board determines:

(1) There is a reasonable probability of usefulness and success of the
bank or trust company in the proposed location; and

(2) the applicant bank's or trust company's financial history and con-
dition is sound, the application shall be approved, otherwise, it shall be
denied.

(e) Any final action of the board approving or disapproving an appli-
cation shall be subject to review in accordance with the act for judicial
review and civil enforcement of agency actions upon the petition of the
applicant, or any adversely affected or aggrieved person who provided
written comments during the specified comment period.

(f) The expenses of such examination and investigation shall be paid
by the bank or trust company which shall deposit with the commissioner
a fee in an amount established by rules and regulations adopted by the
commissioner. The commissioner shall remit all amounts received under
this section to the state treasurer ~~who shall deposit the same~~ in accordance
with the provisions of K.S.A. 75-4215, and amendments thereto. Upon
receipt of each such remittance, the state treasurer shall deposit the entire
amount in the state treasury to the credit of a separate special account in
the state treasury for each application. The moneys in each such account
shall be used only to pay the expenses of the examination and investigation
to which it relates, and any unused portion of such deposit shall be trans-
ferred to the bank commissioner fee fund.

(g) For purposes of this section:

(1) ``Eligible bank'' means a state bank that meets the following cri-
teria:

(A) Received a composite rating of 1 or 2 under the uniform financial
institutions rating system as a result of its most recent federal or state
examination;

(B) meets the following three criteria for a well capitalized bank:

(i) Has a total risk based capital ratio of 10% or greater;

(ii) has a tier one risk based capital ratio of 6% or greater; and

(iii) has a leverage ratio of 5% or greater; and

(C) is not subject to a cease and desist order, consent order, prompt
corrective action directive, written agreement, memorandum of under-
standing or other administrative agreement with its primary federal reg-
ulator or the office of the state bank commissioner; and

(2) ``eligible trust company'' means a state chartered trust company
that meets the following criteria:

(A) Received a composite rating of 1 or 2 under the uniform intera-
gency trust rating system as a result of its most recent state examination;
and

(B) is not subject to a cease and desist order, consent order, written
agreement, memorandum of understanding or other administrative
agreement with the office of the state bank commissioner.

Sec. 3. On July 1, 2001, K.S.A. 2000 Supp. 65-3424b, as amended
by section 245 of Senate Bill No. 15, is hereby amended to read as follows:
65-3424b. (a) The secretary shall establish a system of permits for mobile
waste tire processors and waste tire processing facilities and permits for
waste tire transporters and collection centers. Such permits shall be is-
sued for a period of one year and shall require an application fee estab-
lished by the secretary in an amount not exceeding $250 per year.

(b) The secretary shall adopt rules and regulations establishing stan-
dards for mobile waste tire processors, waste tire processing facilities and
associated waste tire sites, waste tire collection centers and waste tire
transporters. Such standards shall include a requirement that the per-
mittee file with the secretary a bond or other financial assurance in an
amount determined by the secretary to be sufficient to pay any costs
which may be incurred by the state to process any waste tires or dispose
of any waste tires or processed waste tires if the permittee ceases business
or fails to comply with this act.

(c) Any person who contracts or arranges with another person to col-
lect or transport waste tires for storage, processing or disposal shall so
contract or arrange only with a person holding a permit from the secre-
tary. Any person contracting or arranging with a person, permitted by the
secretary, to collect or transport waste tires for storage, processing or
disposal, transfers ownership of those waste tires to the permitted person
and the person contracting or arranging with the person holding such
permit to collect or transport such tires shall be released from liability
therefor. Any person contracting or arranging with any person, permitted
by the secretary, for the collection or, transportation, storage, processing
or disposal of such tires shall maintain a record of such transaction for a
period of not less than five years following the date of the transfer of such
tires.

(d) No person shall:

(1) Own or operate a waste tire processing facility or waste tire col-
lection center or act as a mobile waste tire processor or waste tire trans-
porter unless such person holds a valid permit issued therefor pursuant
to subsection (a); or

(2) own or operate a waste tire processing facility or waste tire col-
lection center or act as a mobile waste tire processor or waste tire trans-
porter except in compliance with the standards established by the sec-
retary pursuant to subsection (b).

(e) The provisions of subsection (d)(1) shall not apply to:

(1) A tire retreading business where fewer than 1,000 waste tires are
kept on the business premises;

(2) a business that, in the ordinary course of business, removes tires
from motor vehicles if fewer than 1,500 of these tires are kept on the
business premises;

(3) a retail tire-selling business which is serving as a waste tire col-
lection center if fewer than 1,500 waste tires are kept on the business
premises;

(4) the department of wildlife and parks;

(5) a person engaged in a farming or ranching activity, including the
operation of a feedlot as defined by K.S.A. 47-1501, and amendments
thereto, as long as the accumulation has a beneficial use;

(6) a waste tire collection center where fewer than 1,500 used tires
are kept on the premises;

(7) a waste tire collection center where 1,500 or more used tires are
kept on the premises, if the owner demonstrates through sales and in-
ventory records that such tires have value, as established in accordance
with standards adopted by rules and regulations of the secretary;

(8) local units of government operating solid waste processing facili-
ties and solid waste disposal areas permitted by the secretary under the
authority of K.S.A. 65-3407, and amendments thereto;

(9) a person transporting: (A) Waste tires mixed with other municipal
solid waste; (B) fewer than five waste tires for lawful disposal; (C) waste
tires generated by the business, farming activities of the person or the
person's employer; or (D) waste tires for a beneficial use approved by
statute or rules and regulations adopted by the secretary; or

(10) a business engaged in processing, for resource recovery pur-
poses, only waste tires generated by the business.

(f) All fees collected by the secretary pursuant to this section shall be
remitted to the state treasurer in accordance with the provisions of K.S.A.
75-4215, and amendments thereto. Upon receipt of each such remittance,
the state treasurer shall deposit the entire amount in the state treasury
to the credit of the waste tire management fund.

Sec. 4. On July 1, 2001, K.S.A. 2000 Supp. 65-3424d, as amended
by section 246 of 2001 Senate Bill No. 15, is hereby amended to read as
follows: 65-3424d. (a) In addition to any other tax imposed upon the retail
sale of new vehicle tires, there is hereby imposed on retail sales of new
vehicle tires (excluding innertubes), including new tires mounted on a
vehicle sold at retail for the first time, an excise tax ~~at the following rate:~~
~~(1) Before July 1, 2001, $.50 per vehicle tire; and (2) on or after July 1,~~
~~2001, $.25~~ of $.25 per vehicle tire. Such tax shall be paid by the purchaser
of such tires and collected by the retailer thereof.

(b) The tax imposed by this section collected by the retailer shall
become due and payable as follows: When the total tax for which any
retailer is liable under this act does not exceed the sum of $80 in any
calendar year, the retailer shall file an annual return on or before January
25 of the following year; when the total tax liability does not exceed $1,600
in any calendar year, the retailer shall file returns quarterly on or before
the 25th day of the month following the end of each calendar quarter;
when the total tax liability exceeds $1,600 in any calendar year, the retailer
shall file a return for each month on or before the 25th day of the follow-
ing month. Each person collecting the tax imposed pursuant to this sec-
tion shall make a true report to the department of revenue, on a form
prescribed by the secretary of revenue, providing such information as may
be necessary to determine the amounts of taxes due and payable here-
under for the applicable month or months, which report shall be accom-
panied by the tax disclosed thereby. Records of sales of new tires shall be
kept separate and apart from the records of other retail sales made by
the person charged to collect the tax imposed pursuant to this section in
order to facilitate the examination of books and records as provided
herein.

(c) The secretary of revenue or the secretary's authorized represen-
tative shall have the right at all reasonable times during business hours
to make such examination and inspection of the books and records of the
person required to collect the tax imposed pursuant to this section as may
be necessary to determine the accuracy of such reports required here-
under.

(d) The secretary of revenue is hereby authorized to administer and
collect the tax imposed by this section and to adopt such rules and reg-
ulations as may be necessary for the efficient and effective administration
and enforcement of the collection thereof. Whenever any person liable
to collect the taxes imposed hereunder refuses or neglects to pay them,
the amount, including any penalty, shall be collected in the manner pre-
scribed for the collection of the retailers' sales tax by K.S.A. 79-3617, and
amendments thereto.

(e) The secretary of revenue shall remit all revenue collected under
the provisions of this section to the state treasurer in accordance with the
provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of
each such remittance, the state treasurer shall deposit the entire amount
in the state treasury to the credit of the waste tire management fund.

(f) Whenever, in the judgment of the secretary of revenue, it is nec-
essary, in order to secure the collection of any taxes, penalties or interest
due, or to become due, under the provisions of this act, the secretary may
require any person charged with the collection of such tax to file a bond
with the director of taxation under conditions established by and in such
form and amount as prescribed by rules and regulations adopted by the
secretary.

(g) The secretary of revenue and the secretary of health and environ-
ment shall cooperate to: (1) Ensure that retailers required to collect the
tax imposed by this section collect such tax on sales of tires for all vehicles,
as defined by K.S.A. 65-3424, and amendments thereto; and (2) develop
and distribute to tire retailers educational materials that emphasize ap-
propriate waste tire management practices.

Sec. 5. On July 1, 2001, K.S.A. 2000 Supp. 65-3424k, as amended by
section 6 of 2001 House Bill No. 2131, is hereby amended to read as
follows: 65-3424k. (a) Before July 1, 2003, the secretary may undertake
appropriate abatement action and may enter into contracts for the abate-
ment of waste tires accumulated before July 1, 1990, utilizing funds from
the waste tire management fund.

(b) Any authorized representative of the secretary may enter, at rea-
sonable times and upon written notice, onto any property or premises
where an accumulation of waste tires is located to conduct: (1) An in-
spection and site assessment to determine whether the accumulation cre-
ates a nuisance or risk to public health and safety or to the environment;
or (2) interim measures to minimize risk to public health and safety or to
the environment.

(c) Whenever the secretary has reason to believe that an accumula-
tion of waste tires creates a nuisance or risk to public health and safety
or to the environment or is in violation of rules and regulations adopted
by the secretary or conditions of a permit issued by the secretary, the
secretary may require the person or persons responsible for the accu-
mulation to carry out abatement activities. Such abatement activities shall
be performed in accordance with a plan approved by the secretary. The
secretary shall give notice, by letter, to the property owner and respon-
sible parties that the waste tires constitute a nuisance or risk to public
health or the environment, and that the waste tire accumulation must be
abated within a specified period. The secretary may undertake abatement
action utilizing funds from the waste tire management fund if: (1) The
waste tires were accumulated before July 1, 1990, and abated before July
1, 2003; or

(2) the waste tires were accumulated after July 1, 1990, and the re-
sponsible parties fail to take the required action within the time period
specified in the notice. The department and its representatives are au-
thorized to enter private property to perform abatement activities if the
responsible party fails to perform required clean-up work, but no entry
shall be made without the property owner's consent except upon notice
and hearing in accordance with the Kansas administrative ~~procedures~~
procedure act.

(d) All costs incurred by the secretary in abatement of waste tires
accumulated after July 1, 1990, or in performing interim measures, in-
cluding administrative and legal expenses, are recoverable from a respon-
sible party or parties and may be recovered in a civil action in district
court brought by the secretary. If any abatement costs are recovered
under this section, the city or county that shared in the cost of the abate-
ment action shall be reimbursed its costs not to exceed 25% of the amount
recovered. The remaining amount recovered shall be remitted to the state
treasurer~~, who~~ in accordance with the provisions of K.S.A. 75-4215, and
amendments thereto. Upon receipt of each such remittance, the state trea-
surer shall deposit the entire amount in the state treasury ~~and credit it~~ to
the credit of the waste tire management fund. An action to recover abate-
ment or interim measures costs may be commenced at any stage of an
abatement.

(e) In performing or entering contracts for abatement actions under
this section, the secretary shall give preference to actions that recycle
waste tires or burn waste tires for energy recovery. Direct abatement
expenditures may include landfilling when waste tires are contaminated
or when feasible in-state markets cannot be identified.

(f) Permits granted by the secretary pursuant to K.S.A. 65-3424b, and
amendments thereto, shall not be transferable and may be revoked or
suspended whenever the secretary determines that the permit holder is
operating in violation of this act or rules and regulations adopted pursuant
to the act; is creating or threatens to create a hazard to persons, property
or the environment; or is creating or threatens to create a public nuisance.
The secretary may also revoke, suspend or refuse to issue a permit when
the secretary determines that past or continuing violations of the provi-
sions of K.S.A. 65-3409, and amendments thereto, have been committed
by the applicant or permit holder.

(g) Neither the state of Kansas nor the waste tire management fund
shall be liable to any owner, operator or responsible party for the loss of
business, damages or taking of property associated with any abatement
or enforcement action taken pursuant to this section.

(h) The secretary shall enter into contracts with one or more associ-
ations of tire retailers to: (1) Assist in disseminating information to all tire
retailers on the requirements of solid waste laws and rules and regulations
relating to waste tires; (2) establish a point of contact for persons re-
questing information on solid waste laws and rules and regulations relat-
ing to waste tires; (3) assist in planning and implementing conferences,
workshops, and other requested training events for persons involved in
the generation, transportation, processing, or disposal of waste tires; and
(4) assemble and analyze data on waste tire management by tire retailers
in Kansas.

Sec. 6. On July 1, 2001, K.S.A. 2000 Supp. 66-1,139a, as amended
by section 273 of 2001 Senate Bill No. 15, is hereby amended to read as
follows: 66-1,139a. All amounts collected under K.S.A. 66-1,139, and
amendments thereto, for the purpose of registration of motor vehicles,
pursuant to 49 U.S.C. ~~11506~~ 14504, shall be remitted by the state cor-
poration commission to the state treasurer in accordance with the pro-
visions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each
such remittance, the state treasurer shall deposit the entire amount in the
state treasury to the credit of the base state registration clearing fund
which is hereby created. Payments due and owing to participating states
pursuant to 49 U.S.C. ~~11506~~ 14504 and refunds for overpayment shall be
made from such fund. The state corporation commission shall reconcile
such clearing fund monthly with balances remitted ~~monthly~~ in accordance
with this section.

Sec. 7. On July 1, 2001, K.S.A. 75-4221, as amended by section 1 of
2001 House Bill No. 2169, is hereby amended to read as follows: 75-4221.
(a) Any state agency which is authorized to maintain a bank account, shall
be responsible for determining that the securities pledged, assigned, de-
posited or in which a security interest is granted by the depository bank
are adequate to secure the balance in the account pursuant to K.S.A. 75-
4218, and amendments thereto. The agency shall immediately notify the
board if the securities pledged, assigned, deposited or in which a security
~~interested~~ interest is granted by the depository bank have become inad-
equate. The board shall immediately notify such depository bank and
demand that additional security be pledged to make good such inade-
quacy and in default of such additional security being promptly furnished,
the board shall instruct the treasurer to close the account.

(b) In cases where a depository bank fails to meet the requirements
established by the board pursuant to K.S.A. 75-4232, and amendments
thereto, the board shall instruct the treasurer to advise the depository
bank it must select one of the following options:

(1) Close the account for the full amount, including accrued interest
and without penalty if the deposit exceeds seven days, or

(2) convert the account to a repurchase agreement under terms ac-
ceptable to the board.

(c) In the event of the insolvency or dissolution from any cause of a
depository bank having a state bank account of any type, the state shall
be entitled to file a claim for the full amount of such account and shall
retain or collect dividends or interest on securities pledged by such de-
pository bank until the amount of the dividends or interest added to the
amount realized from sale of any securities so pledged to the state equals
the amount of the account and any interest due thereon.

The state shall be fully responsible to any depository bank for the safe
return of any securities deposited in the state treasury in accordance with
this act.

Sec. 8. On July 1, 2001, K.S.A. 79-32,105, as amended by section 4
of 2001 Senate Bill No. 44, is hereby amended to read as follows: 79-
32,105. (a) The director shall ~~pay to the treasurer of the state daily~~ remit
the entire amount collected ~~during the preceding day,~~ under the provi-
sions of this act and from the income tax imposed upon individuals, cor-
porations, estates or trusts pursuant to the ``Kansas income tax act'' less
amounts withheld as provided in subsection (b) and any amounts credited
to the IMPACT program repayment fund or the IMPACT program serv-
ices fund under K.S.A. 74-50,107 and amendments thereto~~, which~~
~~amounts shall be credited~~ to the state treasurer in accordance with the
provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of
each such remittance, the state treasurer shall deposit the entire amount
in the state treasury to the credit of the state general fund.

(b) A revolving fund, designated as ``income tax refund fund'' not to
exceed $4,000,000 shall be set apart and maintained by the director from
income tax collections, withholding tax collections, and estimated tax col-
lections and held by the state treasurer for prompt payment of all income
tax refunds, for the payment of interest as provided in subsection (e), for
payment of homestead property tax refunds in accordance with the home-
stead property tax refund act and for payment of property tax refunds
allowed pursuant to the provisions of K.S.A. 2000 Supp. 79-255, and
amendments thereto. The fund shall be in such amount, within the limit
set by this section, as the director determines is necessary to meet current
refunding requirements under this act.

(c) If the director discovers from the examination of the return, or
upon claim duly filed by the taxpayer or upon final judgment of the court
that the income tax, withholding tax, declaration of estimated tax or any
penalty or interest paid by or credited to any taxpayer is in excess of the
amount legally due, the director shall certify to the director of accounts
and reports the name of the taxpayer, the amount of refund and such
other information as the director may require. Upon receipt of such cer-
tification the director of accounts and reports shall issue a warrant on the
state treasurer for the payment to the taxpayer out of the fund provided
in subsection (b), except that no refund shall be made for a sum less than
$5, but such amount may be claimed by the taxpayer as a credit against
the taxpayer's tax liability in the taxpayer's next succeeding taxable year.

(d) When a resident taxpayer dies, and the director determines that
a refund is due the claimant not in excess of $100, the director shall certify
to the director of accounts and reports the name and address of the
claimant entitled to the refund and the amount of the refund. A refund
may be made upon a claim duly made on behalf of the estate of the
deceased or in the absence of any such claim upon a claim by a surviving
spouse and if none upon the claim by any heir at law. Upon receipt of
such certification the director of accounts and reports shall issue a warrant
on the state treasurer for the payment to the claimant out of the fund
provided in subsection (b).

(e) Interest shall be allowed and paid at the rate of 12% per annum
upon any overpayment of the income tax imposed upon individuals, cor-
porations, estates or trusts pursuant to the Kansas income tax act for any
period prior to January 1, 1995, 6% per annum for the period commenc-
ing on January 1, 1995, and ending on December 31, 1997, and at the
rate prescribed and determined pursuant to K.S.A. 79-2968, and amend-
ments thereto, for any period thereafter.

For the purposes of this subsection:

(1) Any return filed before the last day prescribed for the filing
thereof shall be considered as filed on such last day, determined without
regard to any extension of time granted the taxpayer;

(2) any tax paid by the taxpayer before the last day prescribed for its
payment, any income tax withheld from the taxpayer during any calendar
year and any amount paid by the taxpayer as estimated income tax for a
taxable year shall be deemed to have been paid on the last day prescribed
for filing the return for the taxable year to which such amount constitutes
a credit or payment, determined without regard to any extension of time
granted the taxpayer;

(3) if any overpayment of tax results from a carryback of a net oper-
ating loss or net capital loss, such overpayment shall be deemed not to
have been made prior to the close of the taxable year in which such net
operating loss or net capital loss arises. For purposes of this paragraph,
the return for the loss year shall not be deemed to be filed before claim
for such overpayment is filed;

(4) in the case of a credit, interest shall be allowed and paid from the
date of the overpayment to the due date of the amount against which the
credit is taken, except that if any overpayment of income tax is claimed
as a credit against estimated tax for the succeeding taxable year, such
amount shall be considered as a payment of the income tax for the suc-
ceeding taxable year, whether or not claimed as a credit in the return of
estimated tax for such succeeding taxable year, and no interest shall be
allowed or paid in such overpayment for the taxable year in which the
overpayment arises;

(5) in the case of a tax return which is filed after the last date pre-
scribed for filing such return, determined with regard to extensions, no
interest shall be allowed or paid for any period before the date on which
the return is filed;

(6) in the case of a refund, interest shall be allowed and paid from
the date of the overpayment to a date preceding the date of the refund
check by not more than 30 days, as determined by the director, whether
or not such refund check is accepted by the taxpayer after tender of such
check to the taxpayer, but acceptance of such check shall be without
prejudice to any right of the taxpayer to claim any additional overpayment
and interest thereon; and

(7) if any overpayment is refunded within two months after the last
date prescribed, or permitted by extension of time, for filing the return
of such tax, or within two months after the return was filed, whichever is
later, no interest shall be allowed or paid. For the purposes of this section,
an overpayment shall be deemed to have been refunded at the time the
refund check in the amount of the overpayment, plus any interest due
thereon, is deposited in the United States mail.

Sec. 9. On July 1, 2001, K.S.A. 2000 Supp. 79-3425, as amended by
section 454 of 2001 Senate Bill No. 15, is hereby amended to read as
follows: 79-3425. All of the amounts collected under the motor-fuel tax
law and amendments thereto, except amounts collected pursuant to
K.S.A. 79-3408c, and amendments thereto, shall be remitted by the di-
rector to the state treasurer in accordance with the provisions of K.S.A.
75-4215, and amendments thereto. Upon receipt of each such remittance,
the state treasurer shall deposit the entire amount in the state treasury.
The state treasurer shall credit such amount as the director shall order in
the motor-vehicle fuel tax refund fund to be used for the purpose of
paying motor-vehicle fuel tax refunds as provided by law. The state trea-
surer shall credit the remainder of such amounts as follows: To the state
highway fund amounts specified in K.S.A. 79-34,142, and amendments
thereto, to a special city and county highway fund which is hereby created,
amounts specified in K.S.A. 79-34,142, and amendments thereto, to be
apportioned and distributed in the manner provided in K.S.A. 79-3425c,
and amendments thereto, and to the current production account and the
new production account of the Kansas qualified agricultural ethyl alcohol
producer incentive fund, which is hereby created in the state treasury, in
the amount and in the manner specified in K.S.A. 79-34,161, and amend-
ments thereto, to be expended in the manner provided in K.S.A. 79-
34,162, and amendments thereto.

Sec. 10. K.S.A. 2000 Supp. 79-3620 is hereby amended to read as
follows: 79-3620. (a) All revenue collected or received by the director of
taxation from the taxes imposed by this act shall be deposited daily with
the state treasurer. The state treasurer shall credit all revenue received
from this act, less amounts withheld as provided in subsection (b) and
amounts credited as provided in subsection (c) and (d), to the state gen-
eral fund.

(b) A refund fund, designated as ``sales tax refund fund'' not to exceed
$100,000 shall be set apart and maintained by the director from sales tax
collections and estimated tax collections and held by the state treasurer
for prompt payment of all sales tax refunds including refunds authorized
under the provisions of K.S.A. 79-3635, and amendments thereto. Such
fund shall be in such amount, within the limit set by this section, as the
director shall determine is necessary to meet current refunding require-
ments under this act. In the event such fund as established by this section
is, at any time, insufficient to provide for the payment of refunds due
claimants thereof, the director shall certify the amount of additional funds
required to the director of accounts and reports who shall promptly trans-
fer the required amount from the state general fund to the sales tax refund
fund, and notify the state treasurer, who shall make proper entry in the
records.

(c) The state treasurer shall credit 5/98 of the revenue collected or
received from the tax imposed by K.S.A. 79-3603, and amendments
thereto, at the rate of 4.9%, and deposited as provided in subsection (a),
exclusive of amounts credited pursuant to subsection (d), in the state
highway fund.

(d) The state treasurer shall credit all revenue collected or received
from the tax imposed by K.S.A. 79-3603, and amendments thereto, as
certified by the director, from taxpayers doing business within that por-
tion of a redevelopment district occupied by a redevelopment project that
was determined by the secretary of commerce and housing to be of state-
wide as well as local importance or will create a major tourism area for
the state as ~~specified in subsection (a)(1)(D) of K.S.A. 12-1774~~ defined
in K.S.A. 2000 Supp. 12-1770a, and amendments thereto, to the city bond
finance fund, which fund is hereby created. The provisions of this sub-
section shall expire when the total of all amounts credited hereunder and
under subsection (d) of K.S.A. 79-3710, and amendments thereto, is suf-
ficient to retire the special obligation bonds issued for the purpose of
financing all or a portion of the costs of such redevelopment project.

Sec. 11. On July 1, 2001, K.S.A. 2000 Supp. 79-3620, as amended by
section 10 of this act, is hereby amended to read as follows: 79-3620. (a)
All revenue collected or received by the director of taxation from the
taxes imposed by this act shall be ~~deposited daily with~~ remitted to the
state treasurer~~. The state treasurer shall credit all revenue received from~~
~~this act~~ in accordance with the provisions of K.S.A. 75-4215, and amend-
ments thereto. Upon receipt of each such remittance, the state treasurer
shall deposit the entire amount in the state treasury, less amounts with-
held as provided in subsection (b) and amounts credited as provided in
subsection (c) and (d), to the credit of the state general fund.

(b) A refund fund, designated as ``sales tax refund fund'' not to exceed
$100,000 shall be set apart and maintained by the director from sales tax
collections and estimated tax collections and held by the state treasurer
for prompt payment of all sales tax refunds including refunds authorized
under the provisions of K.S.A. 79-3635, and amendments thereto. Such
fund shall be in such amount, within the limit set by this section, as the
director shall determine is necessary to meet current refunding require-
ments under this act. In the event such fund as established by this section
is, at any time, insufficient to provide for the payment of refunds due
claimants thereof, the director shall certify the amount of additional funds
required to the director of accounts and reports who shall promptly trans-
fer the required amount from the state general fund to the sales tax refund
fund, and notify the state treasurer, who shall make proper entry in the
records.

(c) The state treasurer shall credit 5/98 of the revenue collected or
received from the tax imposed by K.S.A. 79-3603, and amendments
thereto, at the rate of 4.9%, and deposited as provided in subsection (a),
exclusive of amounts credited pursuant to subsection (d), in the state
highway fund.

(d) The state treasurer shall credit all revenue collected or received
from the tax imposed by K.S.A. 79-3603, and amendments thereto, as
certified by the director, from taxpayers doing business within that por-
tion of a redevelopment district occupied by a redevelopment project that
was determined by the secretary of commerce and housing to be of state-
wide as well as local importance or will create a major tourism area for
the state as defined in K.S.A. 2000 Supp. 12-1770a, and amendments
thereto, to the city bond finance fund, which fund is hereby created. The
provisions of this subsection shall expire when the total of all amounts
credited hereunder and under subsection (d) of K.S.A. 79-3710, and
amendments thereto, is sufficient to retire the special obligation bonds
issued for the purpose of financing all or a portion of the costs of such
redevelopment project.

Sec. 12. K.S.A. 2000 Supp. 79-3710 is hereby amended to read as
follows: 79-3710. (a) All revenue collected or received by the director
under the provisions of this act shall be deposited daily with the state
treasurer and the state treasurer shall credit the same, less amounts set
apart as provided in subsection (b) and amounts credited as provided in
subsection (c) and (d), to the general revenue fund of the state.

(b) A revolving fund, designated as ``compensating tax refund fund''
not to exceed $10,000 shall be set apart and maintained by the director
from compensating tax collections and estimated tax collections and held
by the state treasurer for prompt payment of all compensating tax refunds.
Such fund shall be in such amount, within the limit set by this section,
as the director shall determine is necessary to meet current refunding
requirements under this act.

(c) The state treasurer shall credit 5/98 of the revenue collected or
received from the tax imposed by K.S.A. 79-3703, and amendments
thereto, at the rate of 4.9%, and deposited as provided in subsection (a),
exclusive of amounts credited pursuant to subsection (d), in the state
highway fund.

(d) The state treasurer shall credit all revenue collected or received
from the tax imposed by K.S.A. 79-3703, and amendments thereto, as
certified by the director, from taxpayers doing business within that por-
tion of a redevelopment district occupied by a redevelopment project that
was determined by the secretary of commerce and housing to be of state-
wide as well as local importance or will create a major tourism area for
the state as ~~specified in subsection (a)(1)(D) of K.S.A. 12-1774~~ defined
in K.S.A. 2000 Supp. 12-1770a, and amendments thereto, to the city bond
finance fund created by subsection (d) of K.S.A. 79-3620, and amend-
ments thereto. The provisions of this subsection shall expire when the
total of all amounts credited hereunder and under subsection (d) of K.S.A.
79-3620, and amendments thereto, is sufficient to retire the special ob-
ligation bonds issued for the purpose of financing all or a portion of the
costs of such redevelopment project.

Sec. 13. On July 1, 2001, K.S.A. 2000 Supp. 79-3710, as amended by
section 12 of this act, is hereby amended to read as follows: 79-3710. (a)
All revenue collected or received by the director under the provisions of
this act shall be ~~deposited daily with~~ remitted to the state treasurer ~~and~~
~~the state treasurer shall credit the same~~ in accordance with the provisions
of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such
remittance, the state treasurer shall deposit the entire amount in the state
treasury, less amounts set apart as provided in subsection (b) and amounts
credited as provided in subsection (c) and (d), to the ~~general revenue~~
~~fund of the state~~ credit of the state general fund.

(b) A revolving fund, designated as ``compensating tax refund fund''
not to exceed $10,000 shall be set apart and maintained by the director
from compensating tax collections and estimated tax collections and held
by the state treasurer for prompt payment of all compensating tax refunds.
Such fund shall be in such amount, within the limit set by this section,
as the director shall determine is necessary to meet current refunding
requirements under this act.

(c) The state treasurer shall credit 5/98 of the revenue collected or
received from the tax imposed by K.S.A. 79-3703, and amendments
thereto, at the rate of 4.9%, and deposited as provided in subsection (a),
exclusive of amounts credited pursuant to subsection (d), in the state
highway fund.

(d) The state treasurer shall credit all revenue collected or received
from the tax imposed by K.S.A. 79-3703, and amendments thereto, as
certified by the director, from taxpayers doing business within that por-
tion of a redevelopment district occupied by a redevelopment project that
was determined by the secretary of commerce and housing to be of state-
wide as well as local importance or will create a major tourism area for
the state as defined in K.S.A. 2000 Supp. 12-1770a, and amendments
thereto, to the city bond finance fund created by subsection (d) of K.S.A.
79-3620, and amendments thereto. The provisions of this subsection shall
expire when the total of all amounts credited hereunder and under sub-
section (d) of K.S.A. 79-3620, and amendments thereto, is sufficient to
retire the special obligation bonds issued for the purpose of financing all
or a portion of the costs of such redevelopment project.

Sec. 14. On July 1, 2001, K.S.A. 79-41a03, as amended by section 1
of 2001 Senate Bill No. 42, is hereby amended to read as follows: 79-
41a03. (a) The tax levied and collected pursuant to K.S.A. 79-41a02, and
amendments thereto, shall become due and payable by the club, caterer,
drinking establishment or temporary permit holder monthly, or on or
before the 25th day of the month immediately succeeding the month in
which it is collected, but any club, caterer, drinking establishment or
temporary permit holder filing an annual or quarterly return under the
Kansas retailers' sales tax act, as prescribed in K.S.A. 79-3607, and amend-
ments thereto, shall, upon such conditions as the secretary of revenue
may prescribe, pay the tax required by this act on the same basis and at
the same time the club, caterer, drinking establishment or temporary
permit holder pays such retailers' sales tax. Each club, caterer, drinking
establishment or temporary permit holder shall make a true report to the
department of revenue, on a form prescribed by the secretary of revenue,
providing such information as may be necessary to determine the amounts
to which any such tax shall apply for all gross receipts derived from the
sale of alcoholic liquor by the club, caterer, drinking establishment or
temporary permit holder for the applicable month or months, which re-
port shall be accompanied by the tax disclosed thereby. Records of gross
receipts derived from the sale of alcoholic liquor shall be kept separate
and apart from the records of other retail sales made by a club, caterer,
drinking establishment or temporary permit holder in order to facilitate
the examination of books and records as provided herein.

(b) The secretary of revenue or the secretary's authorized represen-
tative shall have the right at all reasonable times during business hours
to make such examination and inspection of the books and records of a
club, caterer, drinking establishment or temporary permit holder as may
be necessary to determine the accuracy of such reports required here-
under.

(c) The secretary of revenue is hereby authorized to administer and
collect the tax imposed hereunder and to adopt such rules and regulations
as may be necessary for the efficient and effective administration and
enforcement of the collection thereof. Whenever any club, caterer, drink-
ing establishment or temporary permit holder liable to pay the tax im-
posed hereunder refuses or neglects to pay the same, the amount, in-
cluding any penalty, shall be collected in the manner prescribed for the
collection of the retailers' sales tax by K.S.A. 79-3617, and amendments
thereto.

(d) The secretary of revenue shall remit ~~daily to the state treasurer~~
all revenue collected under the provisions of this act to the state treasurer
in accordance with the provisions of K.S.A. 75-4215, and amendments
thereto. Upon receipt of each such remittance, the state treasurer shall
deposit the entire amount ~~of each remittance~~ in the state treasury. Subject
to the maintenance requirements of the local alcoholic liquor refund fund
created under K.S.A. 79-41a09, and amendments thereto, 25% of the
remittance shall be credited to the state general fund, 5% shall be cred-
ited to the community alcoholism and intoxication programs fund created
by K.S.A. 41-1126, and amendments thereto, and the balance shall be
credited to the local alcoholic liquor fund created by K.S.A. 79-41a04,
and amendments thereto.

(e) Whenever, in the judgment of the secretary of revenue, it is nec-
essary, in order to secure the collection of any tax, penalties or interest
due, or to become due, under the provisions of this act, the secretary may
require any person subject to such tax to file a bond with the director of
taxation under conditions established by and in such form and amount as
prescribed by rules and regulations adopted by the secretary.

(f) The amount of tax imposed by this act shall be assessed within
three years after the return is filed, and no proceedings in court for the
collection of such taxes shall be begun after the expiration of such period
except in the cases of fraud. In the case of a false or fraudulent return
with intent to evade tax, the tax may be assessed or a proceeding in court
for collection of such tax may be begun at any time, within two years from
the discovery of such fraud. No refund or credit shall be allowed by the
director after three years from the date of payment of the tax as provided
in this act unless before the expiration of such period a claim therefor is
filed by the taxpayer, and no suit or action to recover on any claim for
refund shall be commenced until after the expiration of six months from
the date of filing a claim therefor with the director. Before the expiration
of time prescribed in this section for the assessment of additional tax or
the filing of a claim for refund, the director is hereby authorized to enter
into an agreement in writing with the taxpayer consenting to the extension
of the periods of limitations for the assessment of tax or for the filing of
a claim for refund, at any time prior to the expiration of the periods of
limitations. The period so agreed upon may be extended by subsequent
agreements in writing made before the expiration of the period previously
agreed upon.

Sec. 15. K.S.A. 2000 Supp. 79-3620, 79-3620, as amended by section
16 of 2001 Substitute for House Bill No. 2005, 79-3710 and 79-3710, as
amended by section 18 of 2001 Substitute for House Bill No. 2005 are
hereby repealed.

Sec. 16. On July 1, 2001, K.S.A. 17-7515, as amended by section 66
of 2001 Senate Bill No. 15, 65-770, as amended by section 225 of 2001
Senate Bill No. 15, 72-6505, as amended by section 292 of 2001 Senate
Bill No. 15, 75-4221, as amended by section 1 of 2001 House Bill No.
2169, 79-32,105, as amended by section 4 of 2001, Senate Bill No. 44,
79-32,105, as amended by section 448 of 2001 Senate Bill No. 15, 79-
41a03, as amended by section 1 of 2001 Senate Bill No. 42 and 79-41a03,
as amended by section 463 of 2001 Senate Bill No. 15 and K.S.A. 2000
Supp. 2-1011, as amended by section 9 of 2001 Senate Bill No. 15, 8-
1,112, as amended by section 30 of 2001 Senate Bill No. 15, 9-1111b, as
amended by section 41 of 2001 Senate Bill No. 15, 9-1111b, as amended
by section 8 of 2001 House Bill No. 2482, 9-1804, as amended by section
14 of 2001 House Bill No. 2482, 9-1804, as amended by section 45 of
2001 Senate Bill No. 15, 65-708a, as amended by section 223 of 2001
Senate Bill No. 15, 65-750, as amended by section 224 of 2001 Senate
Bill No. 15, 65-3424b, as amended by section 245 of 2001 Senate Bill No.
15, 65-3424b, as amended by section 3 of 2001 House Bill No. 2131, 65-
3424d, as amended by section 246 of 2001 Senate Bill No. 15, 65-3424d,
as amended by section 4 of 2001 House Bill No. 2131, 65-3424k, as
amended by section 6 of 2001 House Bill No. 2131, 65-3424k, as amended
by section 247 of 2001 Senate Bill No. 15, 66-1,139, as amended by
section 272 of 2001 Senate Bill No. 15, 66-1,139a, as amended by section
273 of 2001 Senate Bill No. 15, 66-1,139a, as amended by section 15 of
2001 House Bill No. 2291, 66-1a0l, as amended by section 275 of 2001
Senate Bill No. 15, 79-3425, as amended by section 454 of 2001 Senate
Bill No. 15, 79-3425, as amended by section 1 of 2001 House Bill No.
2011, 79-3620, as amended by section 10 of this act, 79-3620, as amended
by section 460 of 2001 Senate Bill No. 15, 79-3710, as amended by section
12 of this act and 79-3710, as amended by section 461 of 2001 Senate
Bill No. 15 are hereby repealed.

Sec. 17. This act shall take effect and be in force from and after its
publication in the Kansas register.

Approved May 9, 2001.
Published in the Kansas Register May 17, 2001.
__________