CHAPTER 97 SENATE BILL No. 565 An Act concerning the impact act; expanding the availability thereof; concerning Kansas
investments in major projects; amending K.S.A. 2001 Supp. 74-50,106 and 74-50,107
and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 2001 Supp. 74-50,107 is hereby amended to read
as follows: 74-50,107. (a) The secretary of commerce and housing shall
determine and from time to time shall redetermine the rate at which
moneys shall be credited to the IMPACT program repayment fund in
order to satisfy all bond repayment obligations which have been incurred
to finance program costs for IMPACT programs (which shall be referred
to as the debt service rate) and the rate at which moneys shall be credited
to the IMPACT program services fund in order to finance program costs
that are not financed by bonds (which shall be referred to as the direct
funding rate). The total of the debt service rate and the direct funding
rate shall be the combined rate. Each rate so determined shall be certified
to the secretary of revenue. ~~The~~ On and after July 1, 2003, the combined
rate determined under this subsection shall not exceed 1.5%. On and after
July 1, 2005, the combined rate determined under this subsection shall
not exceed 1% 2%.

(b) Upon receipt of the rates determined and certified under sub-
section (a), the secretary of revenue shall apply daily the combined rate
to that portion of the moneys withheld from the wages of individuals and
collected under the Kansas withholding and declaration of estimated tax
act K.S.A. 79-3294 et seq., and amendments thereto. The amount so de-
termined shall be credited as follows: (1) The portion attributable to the
debt service rate shall be credited to the IMPACT program repayment
fund, and (2) the remaining portion shall be credited to the IMPACT
program services fund.

The aggregate of all amounts credited to the IMPACT program repay-
ment fund under this section during any fiscal year to pay bond repayment
obligations on bonds to finance major project investments shall not exceed
10% of the amount which results when the rate of 1% is applied to all
money withheld from the wages of individuals and received under the
Kansas withholding and declaration of estimated tax act.

On and after July 1, 2003, the aggregate of all amounts credited to the
IMPACT program repayment fund under this section during any fiscal
year to pay bond repayment obligations on bonds to finance major project
investments shall not exceed 10% of the amount which results when the
rate of 1.5% is applied to all moneys withheld from the wages of individ-
uals and received under the Kansas withholding and declaration of esti-
mated tax act.

On and after July 1, 2005, the aggregate of all amounts credited to the
IMPACT program repayment fund under this section during any fiscal
year to pay bond repayment obligations on bonds to finance major project
investments shall not exceed 10% of the amount which results when the
rate of 2% is applied to all money withheld from the wages of individuals
and received under the Kansas withholding and declaration of estimated
tax act.

Sec. 2. K.S.A. 2001 Supp. 74-50,106 is hereby amended to read as
follows: 74-50,106. (a) The secretary of commerce and housing shall re-
view applications for proposed agreements submitted by employers in
accordance with the standards and guidelines prescribed by this act and
by rules and regulations adopted under K.S.A. 74-50,104, and amend-
ments thereto. Each application for approval of a proposed agreement
shall be accompanied by information about the number and wages of the
new or retained jobs created by the employer, documentation of existing
training activities of the employer and such other information as may be
required by the secretary of commerce and housing.

(b) The secretary of commerce and housing may pool the funding
requirements of projects which are the subject of proposed agreements
to determine the funding requirements of the SKILL projects under con-
sideration to facilitate the issuance of bonds by the Kansas development
finance authority.

(c) The secretary of commerce and housing is hereby authorized to
expend funds raised pursuant to this act on major project investments.
The secretary shall adopt guidelines consistent with this act concerning
firm eligibility for major project investments and shall otherwise admin-
ister the major project investment portion of the IMPACT act.

(d) In order for an employer to be eligible for a major project in-
vestment, the employer must:

(1) Annually make an investment in training and education of the
employer's employees that exceeds 2% of the employer's total annual
payroll costs; or

(2) agree that a portion of any funds available under the agreement
be spent directly on employee education and training.

(e) An employer not creating new jobs shall not be eligible for par-
ticipation in an IMPACT program unless the employer meets the follow-
ing criteria: (1) Maintains a minimum of ~~1,000~~ 250 retained jobs; (2)
makes a capital investment of at least ~~$250,000,000~~ $50,000,000; and (3)
the secretary of commerce and housing finds that the program or project
will be a major factor in the Kansas basic enterprise remaining in Kansas.

(f) Prior to obtaining financing from the Kansas development finance
authority for any project, group of projects or major project investment
for one or more employers, the secretary of commerce and housing shall
present each such project to the governor's council on work force training
and investment for review and approval. No agreement shall be approved
by the secretary of commerce and housing unless each project under the
agreement has been reviewed and finally approved by the governor's
council on work force training and investment.
Sec. 3. K.S.A. 2001 Supp. 74-50,106 and 74-50,107 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 24, 2002.
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