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12  AN ACT concerning nongame, threatened and endangered species; re-
13    lating to listing of and recovery plans for such species; allowing tax
14    credits for certain taxes and assessments; amending K.S.A. 32-957, 32-
15    960 and 32-962 and K.S.A. 1996 Supp. 79-32,117 and repealing the
16    existing sections; also repealing K.S.A. 1996 Supp. 32-963a.
17
18  Be it enacted by the Legislature of the State of Kansas:
19    Section 1.  K.S.A. 32-957 is hereby amended to read as follows: 32-
20  957. K.S.A. 32-957 through 32-963, 32-1009 through 32-1012 and, 32-
21  1033 and sections 3 and 4, and amendments thereto, shall be known and
22  may be cited as the nongame and endangered species conservation act.
23    Sec. 2.  K.S.A. 32-960 is hereby amended to read as follows: 32-960.
24    (a) The secretary shall determine whether any species of wildlife indig-
25  enous to the state is a threatened species or an endangered species in
26  this state because of any of the following factors:
27    (1)  The present or threatened destruction, modification or curtail-
28  ment of its habitat or range;
29    (2)  the overutilization of such species for commercial, sporting, sci-
30  entific, educational or other purposes;
31    (3)  disease or predation;
32    (4)  the inadequacy of existing regulatory mechanisms; or
33    (5)  the presence of other natural or man-made factors affecting its
34  continued existence within this state.
35    (b) (1)  The secretary shall make the determinations required by sub-
36  section (a) on the basis of the best scientific, commercial and other data
37  available to the secretary and after consultation, as appropriate, with fed-
38  eral agencies, other interested state agencies and interested persons and
39  organizations.
40    (2)  In determining whether any species of wildlife is a threatened
41  species or an endangered species in this state, the secretary shall take
42  into consideration those actions, if any, being carried out or about to be
43  carried out by the federal government, by other states, by other agencies
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 1  of this state or political subdivisions thereof, or by nongovernmental per-
 2  sons or organizations which may affect the species under consideration.
 3    (3)  Species of wildlife which occur in this state and which have been
 4  determined to be threatened species or endangered species pursuant to
 5  Pub. L. No. 93-205 (December 28, 1973), the endangered species act of
 6  1973, and amendments thereto, shall receive full consideration by the
 7  secretary to determine whether each such species is a threatened or an
 8  endangered species in this state.
 9    (c) (1)  The secretary shall adopt, in accordance with K.S.A. 32-
10  805 and amendments thereto, rules and regulations pursuant to K.S.A.
11  32-963 and amendments thereto which contain a list of all species of
12  wildlife indigenous to this state which have been determined to be en-
13  dangered species pursuant to this section and a list of all such species
14  which have been determined to be threatened species pursuant to this
15  section. Each list shall refer to the species contained therein by their
16  scientific and common names, if any, and shall specify with respect to
17  each such species the portion of the range of such species within this state
18  in which it is threatened or endangered.
19    (2)  The secretary may not add a species to nor remove a species from
20  any such list unless the secretary has first:
21    (A)  Published a public notice of such proposed action;
22    (B)  notified the governor of any state which shares a common border
23  with this state and in which the subject species is known to occur that
24  such action is being proposed; and
25    (C)  allowed at least 30 days following publication of such public no-
26  tice for comment from the public and other interested parties, except that
27  in cases where the secretary determines that an emergency situation ex-
28  ists, the secretary may add species to such lists provided the secretary has
29  published a public notice that such an emergency situation exists together
30  with a summary of facts which support such determination (i) in cases
31  where the secretary determines that an emergency situation exists,
32  published a public notice that such an emergency situation exists,
33  together with a summary of facts that support such determination;
34  or (ii) in all other cases, conducted public informational meetings to
35  coincide with the scientific review outside the agency which will recom-
36  mend action with regard to the addition of the species to or removal of
37  the species from the list. All documents within the control and custody of
38  the secretary that pertain to adding the species to or removing the species
39  from the list shall be made available to the public in a local repository,
40  such as a public library, courthouse or regional office of the department.
41  The secretary shall also mail a notice of the proposed addition of the
42  species to or removal of the species from the list to federal and state
43  agencies and local and tribal governments that are or may be affected by
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 1  results of the review and to all individuals and organizations that have
 2  requested notification of department action regarding the administration
 3  of this act. The secretary shall also issue news releases to publicize the
 4  proposed addition of the species to or removal of the species from the list.
 5    (3)  Upon the petition of an interested person, the secretary shall con-
 6  duct a review of any listed or unlisted species of wildlife proposed to be
 7  removed from or added to either of the lists adopted pursuant to this
 8  subsection (c), but only if the secretary makes a determination and pub-
 9  lishes a public notice that such person has presented substantial evidence
10  which warrants such a review. Once the secretary has made a determi-
11  nation that a review is warranted, the process described in subsection
12    (c)(2), including the conducting of a public information meeting, shall
13  apply.
14    (d)  Every five years the secretary shall conduct a review of the species
15  listed pursuant to this act (except for those species listed pursuant to the
16  federal endangered species act of 1973, as amended) and shall submit any
17  proposed changes in the listings to the following for consideration: (1)
18  Federal and state agencies and local and tribal governments that are or
19  may be affected by results of the change; and (2) all individuals and or-
20  ganizations that have requested notification of departmental action re-
21  garding administration of this act. After at least 90 days for comment by
22  the agencies, governments, individuals and organizations to which the
23  proposed changes are submitted, the secretary shall submit to the com-
24  mission proposed rules and regulations making any changes that the sec-
25  retary determines should be made in the listings.
26    New Sec. 3.  (a) On or before January 1, 1998, the secretary shall
27  adopt, in accordance with K.S.A. 32-805 and amendments thereto,
28  rules and regulations establishing procedures for developing and imple-
29  menting recovery plans for all species listed as in need of conservation,
30  threatened or endangered. The secretary shall give priority to develop-
31  ment of recovery plans for particular species based on a cumulative as-
32  sessment of the scientific evidence available. Based on the priority rank-
33  ing, the secretary shall develop and begin implementation of recovery
34  plans for at least two listed species on or before January 1, 1999.
35    (b)  Whenever a species is added to the list of threatened or endan-
36  gered species, the secretary shall establish a volunteer local advisory com-
37  mittee composed of members broadly representative of the area affected
38  by the addition of the species to the list. Members shall include repre-
39  sentatives of specialists from academic institutions, agribusiness and other
40  trade organizations, state environmental and conservation organizations
41  and other interested organizations and individuals. In addition, the mem-
42  bership shall include, if appropriate, landowners and public officials rep-
43  resenting state, local and tribal governments. To the maximum extent
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 1  possible, committee membership shall evenly balance the interests of all
 2  potentially affected groups and institutions.
 3    (c)  The advisory committee shall: (1) Work with the secretary to adapt
 4  the listing of the species and the recovery plan for the species to the social
 5  and economic conditions of the affected area; and (2) disseminate infor-
 6  mation to the public about the scientific basis of the decision to list the
 7  species, the regulatory process and incentives available to landowners
 8  pursuant to this act.
 9    (d)  If a species in need of conservation receives a priority ranking to
10  develop and begin implementation of a recovery plan, the secretary shall
11  establish a volunteer local advisory committee in the same manner as
12  provided by subsection (b) to work with the secretary to adapt the recov-
13  ery plan and disseminate information to the public.
14    (e)  In implementing a recovery plan for a species, the secretary shall
15  consider any data, recommendations and information provided by the
16  advisory committee.
17    New Sec. 4.  The secretary shall adopt, in accordance with K.S.A.
18  32-805 and amendments thereto, rules and regulations establishing
19  those guidelines prescribed in the operational directive of the secretary
20  dated January 18, 1996, as the guidelines for law enforcement actions and
21  permit requirements relating to the species listed as threatened or en-
22  dangered pursuant to the Kansas nongame and endangered species con-
23  servation act and based on a determination of ``intent'' as it relates to
24  lawful activities associated with normal farming and ranching land
25  treatment practices practices. In addition, such rules and regulations
26  incorporating the operational directive shall establish guidelines
27  for enforcement activities related to development of residential
28  and commercial property on privately owned property financed
29  with private, nonpublic funds.
30    Sec. 5.  K.S.A. 32-962 is hereby amended to read as follows: 32-962.
31    (a) The secretary shall establish such programs, including acquisition of
32  land or aquatic habitat, as are deemed necessary for the conservation of
33  nongame, threatened and endangered species. The secretary shall utilize
34  all authority vested in the secretary by the laws of this state to carry out
35  the purposes of this section with the exception that the secretary shall
36  not utilize the power of eminent domain to carry out such programs
37  unless a specific authorization and appropriation is made therefor by the
38  legislature.
39    (b) (1)  In carrying out programs authorized by this section, the sec-
40  retary may enter into agreements with federal agencies, other states, other
41  state agencies, political subdivisions of this state or with private persons
42  for administration and management of any area established under this
43  section or utilized for conservation of nongame, species, species in need
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 1  of conservation or threatened or endangered species. Such programs shall
 2  include, but not be limited to, the following conservation agreements:
 3    (A)  Prelisting conservation agreement: An agreement identifying land
 4  where the contracting entity agrees to carry out management activities
 5  that increase the likelihood of species survival before a species is listed as
 6  threatened or endangered. The intent of such agreement would be to allow
 7  the contracting entity to carry out management activities specified in the
 8  agreement during the life of the agreement without penalties of law en-
 9  forcement action or permitting requirements if the species is listed at a
10  later date.
11    (B)  Safe harbor agreement: An agreement in which the contracting
12  entity agrees to maintain or enhance suitable, but currently unoccupied,
13  habitat for a species listed as in need of conservation, threatened or en-
14  dangered so as to increase utilization of the habitat by a listed species.
15  The intent of such agreement would be to protect the contracting entity
16  from any restrictions on land use that might otherwise occur if a listed
17  species immigrates into the habitat.
18    (C)  No take agreement: An agreement allowing the contracting entity
19  to implement voluntary management activities that maintain, enhance, set
20  aside or create habitat for species listed as in need of conservation, threat-
21  ened or endangered. The intent of such agreement would be to provide
22  assurance that the management activities specified in the agreement
23  would not lead to penalties of law enforcement action or permitting
24  requirements if future changes in land use are needed.
25    (2)  The initial term of any agreement pursuant to subsection (b)(1)
26  shall be five years. An agreement may be continued, with or without
27  modification, after the five-year term, subject to review and determination
28  by all parties. In the absence of a mutually satisfactory determination by
29  the parties that an agreement should continue, the agreement will ter-
30  minate.
31    (c)  The governor shall review other programs administered by the
32  governor and utilize such programs in furtherance of the purposes of the
33  nongame and endangered species conservation act. All state agencies shall
34  cooperate with the secretary in furtherance of the conservation of non-
35  game, threatened and endangered species.
36    New Sec. 6.  (a) There shall be allowed two types of credits against
37  the tax liability of a taxpayer imposed under the Kansas income tax act
38  related to real property that is both:
39    (1)  Designated by the secretary of wildlife and parks pursuant to the
40  nongame and endangered species conservation act as critical habitat for
41  a threatened or endangered species or certified by the secretary of wildlife
42  and parks as land known to support populations of species in need of
43  conservation; and
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 1    (2)  included in management activities as part of a recovery plan, or
 2  an agreement identified in subsection (b) of K.S.A. 32-962 and amend-
 3  ments thereto, as approved by the secretary of wildlife and parks, for a
 4  species listed as threatened, endangered or in need of conservation pur-
 5  suant to the nongame and endangered species conservation act.
 6    (b)  There shall be allowed as an annual credit against the tax liability
 7  of a taxpayer imposed an amount equal to the total amount paid by the
 8  taxpayer during the taxable year for ad valorem taxes and assessments that
 9  are imposed by the state or by any political or taxing subdivision of the
10  state or related to real property described in subsection (a) for each year
11  that the management activities specified in the recovery plan or agree-
12  ment described in subsection (a)(2) remain in effect and apply to such
13  real property. The credit allowed by this subsection shall not exceed the
14  amount of tax imposed under the Kansas income tax act reduced by the
15  sum of any other credits allowable pursuant to law.
16    (c)  There shall be allowed as a credit against the tax liability of a
17  taxpayer imposed under the Kansas income tax act an amount equal to
18  costs incurred by the taxpayer for habitat management or construction
19  and maintenance of improvements on real property described in subsec-
20  tion (a). Such costs shall be for management or improvements in accor-
21  dance with management activities as a part of a recovery plan or conser-
22  vation agreement identified in subsection (b) of K.S.A. 32-962 and
23  amendments thereto, as approved by the secretary of wildlife and parks,
24  for a species listed as threatened, endangered or in need of conservation
25  pursuant to the nongame and endangered species conservation act. The
26  tax credit allowed by this subsection shall be deducted from the taxpayer's
27  income tax liability for the taxable year in which the expenditures are
28  made by the taxpayer. If the amount of such tax credit exceeds the tax-
29  payer's income tax liability for such taxable year, the taxpayer may elect,
30  at the time of filing the initial return upon which the credit is claimed,
31  to: (1) Carry over the amount thereof that exceeds such tax liability for
32  deduction from the taxpayer's income tax liability in the next succeeding
33  taxable year or years until the total amount of the tax credit has been
34  deducted from tax liability; or (2) receive reimbursement of the amount
35  thereof that exceeds such tax liability, to be paid from amounts appro-
36  priated to the secretary of revenue for that purpose upon warrants of the
37  director of accounts and reports issued pursuant to vouchers approved
38  by the secretary or a person or persons designated by the secretary.
39    (d)  The provisions of this section shall be applicable to all taxable
40  years commencing after December 31, 1997, but before January 1, 2003.
41    Sec. 7.  K.S.A. 1996 Supp. 79-32,117 is hereby amended to read
42  as follows: 79-32,117. (a) The Kansas adjusted gross income of an
43  individual means such individual's federal adjusted gross income
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 1  for the taxable year, with the modifications specified in this section.
 2    (b)  There shall be added to federal adjusted gross income:
 3    (i)  Interest income less any related expenses directly incurred
 4  in the purchase of state or political subdivision obligations, to the
 5  extent that the same is not included in federal adjusted gross in-
 6  come, on obligations of any state or political subdivision thereof,
 7  but to the extent that interest income on obligations of this state or
 8  a political subdivision thereof issued prior to January 1, 1988, is
 9  specifically exempt from income tax under the laws of this state
10  authorizing the issuance of such obligations, it shall be excluded
11  from computation of Kansas adjusted gross income whether or not
12  included in federal adjusted gross income. Interest income on ob-
13  ligations of this state or a political subdivision thereof issued after
14  December 31, 1987, shall be excluded from computation of Kansas
15  adjusted gross income whether or not included in federal adjusted
16  gross income.
17    (ii)  Taxes on or measured by income or fees or payments in lieu
18  of income taxes imposed by this state or any other taxing jurisdic-
19  tion to the extent deductible in determining federal adjusted gross
20  income and not credited against federal income tax. This paragraph
21  shall not apply to taxes imposed under the provisions of K.S.A. 79-
22  1107 or 79-1108, and amendments thereto, for privilege tax year
23  1995, and all such years thereafter.
24    (iii)  The federal net operating loss deduction.
25    (iv)  Federal income tax refunds received by the taxpayer if the
26  deduction of the taxes being refunded resulted in a tax benefit for
27  Kansas income tax purposes during a prior taxable year. Such re-
28  funds shall be included in income in the year actually received re-
29  gardless of the method of accounting used by the taxpayer. For pur-
30  poses hereof, a tax benefit shall be deemed to have resulted if the
31  amount of the tax had been deducted in determining income subject
32  to a Kansas income tax for a prior year regardless of the rate of
33  taxation applied in such prior year to the Kansas taxable income,
34  but only that portion of the refund shall be included as bears the
35  same proportion to the total refund received as the federal taxes
36  deducted in the year to which such refund is attributable bears to
37  the total federal income taxes paid for such year. For purposes of
38  the foregoing sentence, federal taxes shall be considered to have
39  been deducted only to the extent such deduction does not reduce
40  Kansas taxable income below zero.
41    (v)  The amount of any depreciation deduction or business ex-
42  pense deduction claimed on the taxpayer's federal income tax return
43  for any capital expenditure in making any building or facility ac-
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 1  cessible to the handicapped, for which expenditure the taxpayer
 2  claimed the credit allowed by K.S.A. 79-32,177, and amendments
 3  thereto.
 4    (vi)  Any amount of designated employee contributions picked
 5  up by an employer pursuant to K.S.A. 12-5005, 20-2603, 74-4919
 6  and 74-4965, and amendments to such sections.
 7    (vii)  The amount of any charitable contribution made to the
 8  extent the same is claimed as the basis for the credit allowed pur-
 9  suant to K.S.A. 1996 Supp. 79-32,196, and amendments thereto.
10    (viii)  The amount of any ad valorem taxes and assessments paid and
11  the amount of any costs incurred for habitat management or construction
12  and maintenance of improvements on real property, claimed for deduction
13  in determining federal adjusted gross income, to the extent the same is
14  claimed as the basis for any credit allowed pursuant to section 6 and
15  amendments thereto.
16    (c)  There shall be subtracted from federal adjusted gross in-
17  come:
18    (i)  Interest or dividend income on obligations or securities of
19  any authority, commission or instrumentality of the United States
20  and its possessions less any related expenses directly incurred in the
21  purchase of such obligations or securities, to the extent included in
22  federal adjusted gross income but exempt from state income taxes
23  under the laws of the United States.
24    (ii)  Any amounts received which are included in federal ad-
25  justed gross income but which are specifically exempt from Kansas
26  income taxation under the laws of the state of Kansas.
27    (iii)  The portion of any gain or loss from the sale or other dis-
28  position of property having a higher adjusted basis for Kansas in-
29  come tax purposes than for federal income tax purposes on the date
30  such property was sold or disposed of in a transaction in which gain
31  or loss was recognized for purposes of federal income tax that does
32  not exceed such difference in basis, but if a gain is considered a
33  long-term capital gain for federal income tax purposes, the modifi-
34  cation shall be limited to that portion of such gain which is included
35  in federal adjusted gross income.
36    (iv)  The amount necessary to prevent the taxation under this
37  act of any annuity or other amount of income or gain which was
38  properly included in income or gain and was taxed under the laws
39  of this state for a taxable year prior to the effective date of this act,
40  as amended, to the taxpayer, or to a decedent by reason of whose
41  death the taxpayer acquired the right to receive the income or gain,
42  or to a trust or estate from which the taxpayer received the income
43  or gain.
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 1    (v)  The amount of any refund or credit for overpayment of taxes
 2  on or measured by income or fees or payments in lieu of income
 3  taxes imposed by this state, or any taxing jurisdiction, to the extent
 4  included in gross income for federal income tax purposes.
 5    (vi)  Accumulation distributions received by a taxpayer as a ben-
 6  eficiary of a trust to the extent that the same are included in federal
 7  adjusted gross income.
 8    (vii)  Amounts received as annuities under the federal civil serv-
 9  ice retirement system from the civil service retirement and disabil-
10  ity fund and other amounts received as retirement benefits in what-
11  ever form which were earned for being employed by the federal
12  government or for service in the armed forces of the United States.
13    (viii)  Amounts received by retired railroad employees as a sup-
14  plemental annuity under the provisions of 45 U.S.C. 228b (a) and
15  228c (a)(1) et seq.
16    (ix)  Amounts received by retired employees of a city and by
17  retired employees of any board of such city as retirement allow-
18  ances pursuant to K.S.A. 13-14,106, and amendments thereto, or
19  pursuant to any charter ordinance exempting a city from the pro-
20  visions of K.S.A. 13-14,106, and amendments thereto.
21    (x)  For taxable years beginning after December 31, 1976, the
22  amount of the federal tentative jobs tax credit disallowance under
23  the provisions of 26 U.S.C. 280 C. For taxable years ending after
24  December 31, 1978, the amount of the targeted jobs tax credit and
25  work incentive credit disallowances under 26 U.S.C. 280 C.
26    (xi)  For taxable years beginning after December 31, 1986, div-
27  idend income on stock issued by Kansas Venture Capital, Inc.
28    (xii)  For taxable years beginning after December 31, 1989,
29  amounts received by retired employees of a board of public utilities
30  as pension and retirement benefits pursuant to K.S.A. 13-1246, 13-
31  1246a and 13-1249 and amendments thereto.
32    (xiii)  For taxable years beginning after December 31, 1993, the
33  amount of income earned on contributions deposited to an individ-
34  ual development account under K.S.A. 1996 Supp. 79-32,117h, and
35  amendments thereto.
36    (d)  There shall be added to or subtracted from federal adjusted
37  gross income the taxpayer's share, as beneficiary of an estate or
38  trust, of the Kansas fiduciary adjustment determined under K.S.A.
39  79-32,135, and amendments thereto.
40    (e)  The amount of modifications required to be made under this
41  section by a partner which relates to items of income, gain, loss,
42  deduction or credit of a partnership shall be determined under
43  K.S.A. 79-32,131, and amendments thereto, to the extent that such
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 1  items affect federal adjusted gross income of the partner.
 2    Sec. 7 8.  K.S.A. 32-957, 32-960 and 32-962 and K.S.A. 1996 Supp.
 3  32-963a and 79-32,117 are hereby repealed.
 4    Sec. 8 9.  This act shall take effect and be in force from and after its
 5  publication in the Kansas register.