CHAPTER 70 HOUSE BILL No. 2198 An Act concerning the Kansas water pollution control revolving fund; amending K.S.A. 2000 Supp. 65-3322 and repealing the existing section. Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 2000 Supp. 65-3322 is hereby amended to read as
follows: 65-3322. (a) There is hereby established in the state treasury a
fund to be maintained in perpetuity and to be known as the Kansas water
pollution control revolving fund. The fund shall consist of:

      (1) Amounts awarded or otherwise made available to this state under
the federal act for the purposes of the fund;

      (2) amounts appropriated or otherwise made available by the legis-
lature for the purposes of the fund;

      (3) the proceeds, if any, derived from the sale of bonds issued by the
Kansas development finance authority for the purposes of the fund to the
extent provided in any agreement entered into by the secretary and the
authority;

      (4) amounts of repayments made by municipalities of loans received
under K.S.A. 65-3321 through 65-3329, and amendments thereto, to-
gether with payments of interest thereon, in accordance with agreements
entered into by such municipalities and the secretary;

      (5) amounts earned on moneys in the fund; and

      (6) amounts contributed or otherwise made available by any public
or private entity for use in effectuating the purposes of the fund.

      (b) Subject to the conditions and in accordance with requirements of
the federal act and the provisions of K.S.A. 65-3321 through 65-3329, and
amendments thereto, the fund may be used only:

      (1) To make loans to municipalities for payment of all or a part of
project costs;

      (2) to carry out planning for wastewater treatments works;

      (3) for implementation of nonpoint source pollution control pro-
grams;

      (4) as a source of revenue or security for the payment of principal
and interest on bonds issued by the Kansas development finance authority
if, and to the extent that, the proceeds of the sale of such bonds are
deposited in the fund;

      (5) to earn interest on moneys in the fund;

      (6) to make grants to qualifying projects as authorized by the federal
appropriation act of 1996 (P.L. 104-134), in accordance with the rural
communities hardship grants program implementation guidelines (Fed-
eral Register, March 20, 1997);

      (7) to make grants to qualifying projects as authorized by the con-
solidated appropriations act of 2001 (P.L. 106-554), in accordance with
the wet weather water quality act of 2000; and

      (6) (8) for the reasonable costs, in amounts not to exceed 4% of all
amounts awarded to the state for the fund under title VI of the federal
act, of administering the fund and conducting activities under K.S.A. 65-
3321 through 65-3329, and amendments thereto, and for reasonable costs
after amounts cease to be awarded by the federal government under title
VI of the federal act, as determined by the secretary, of administering
the fund and conducting activities under K.S.A. 65-3321 through 65-3329,
and amendments thereto. Such costs shall be identified annually in de-
velopment of the intended use plan as described in K.S.A. 65-3325, and
amendments thereto.

      (c) On or before the 10th of each month, the director of accounts
and reports shall transfer from the state general fund to the Kansas water
pollution control revolving fund interest earnings based on:

      (1) The average daily balance of moneys in the Kansas water pollution
control revolving fund for the preceding month; and

      (2) the net earnings rate of the pooled money investment portfolio
for the preceding month.

      (d) All payments and disbursements from the fund shall be made
upon warrants of the director of accounts and reports issued pursuant to
vouchers approved by the secretary or by a person or persons designated
by the secretary. All payments and disbursements from the fund, and
beginning and ending balances thereof, shall be subject each year to post
audit in accordance with article 11 of chapter 46 of the Kansas Statutes
Annotated.

 Sec.  2. K.S.A. 2000 Supp. 65-3322 is hereby repealed.
 Sec.  3. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 3, 2001.
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