----------------------------------------------------------------------------


AN ACT concerning municipal and gas utilities; service outside three
  miles of city; amending K.S.A. 12-808a, 12-808b and 66-131 and re-
  pealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
  Section 1.  K.S.A. 12-808a is hereby amended to read as follows: 12-
808a. Whenever the governing body or the board of public utilities of any
city owning or operating an electric or gas utility, any part of which is
defined as a public utility under K.S.A. 66-104 and amendments thereto,
shall deem it necessary for the proper construction, operation and man-
agement of such public utility, said governing body or board shall have
and are hereby granted the power of eminent domain outside the cor-
porate limit of such city, within the area subject to the jurisdiction and
control of the corporation commission.
  Subject to the approval of the corporation commission, Every such
utility shall have and is hereby granted the power and authority to deter-
mine the rate for service within any area located outside of and more
than three (3) miles from the corporate limits of a city. However, The
rate for service in such an area may not exceed the rate charged for similar
service to similar types and classes of service consumers located outside
of and within three miles of the corporate limits of the city. Nothing herein
shall be construed as affecting the validity of rates, charged to consumers
in such areas by a municipally owned or operated gas or electric utility,
which have been established and are in effect on the effective date of this
act, but any change in such rates shall be subject to the approval of the
corporation commission and must receive the commission's approval be-
fore said rates shall become effective.
  Sec. 2.  K.S.A. 12-808b is hereby amended to read as follows: 12-
808b. Within one hundred twenty (120) 120 days after the effective date
of this act, all municipally owned or operated electric or gas utilities hav-
ing facilities located outside of and more than three (3) miles from the
corporate limits of the city shall file with the corporation commission in
the manner prescribed by the commission:
  (a)  A schedule of rates charged to all consumers outside of and more
than three (3) miles from the corporate limits of such municipality; and
  (b)  the location of all facilities of such utility located outside of and
more than three (3) miles from the corporate limits of such municipality.
  Sec. 3.  K.S.A. 66-131 is hereby amended to read as follows: 66-131.
No common carrier or public utility, including that portion of any mu-
nicipally owned utility defined as a public utility by K.S.A. 66-104 and
amendments thereto, governed by the provisions of this act shall transact
business in the state of Kansas until it shall have obtained a certificate
from the corporation commission that public convenience will be pro-
moted by the transaction of said business and permitting said applicants
to transact the business of a common carrier or public utility in this state.
Notwithstanding K.S.A. 66-104 and amendments thereto, in no event shall
such jurisdiction authorize the corporation commission to review, con-
sider or affect the rates charged for services of such municipally owned
or operated electric or gas utility, if such rates are in compliance with
K.S.A. 12-808a and amendments thereto. In no event shall such jurisdic-
tion authorize the corporation commission to review, consider or effect
the facilities or rates charged for services or in any way the operation of
such municipally owned or operated electric or gas utility within the cor-
porate limits or outside but within three (3) miles of the corporate limits
of any city, or facilities, or rates charged for services or in any way the
operation of facilities or their replacements now owned by any such utility
except as provided in K.S.A. 66-131a and amendments thereto. No pre-
scribed rates, orders or other regulatory supervision of the corporation
commission shall be contrary to any lawful provision of any revenue bond
ordinance authorizing the issuance of revenue bonds to finance all or any
part of the municipally owned or operated electric or gas utility so sub-
jected to the jurisdiction of the corporation commission. This section shall
not apply to any common carrier or public utility governed by the pro-
visions of this act now transacting business in this state, nor shall this
section apply to the facilities and operations of any municipally owned or
operated utility supplying electricity or gas outside of the corporate limits
of any municipality where such facilities and operations are in existence
on the effective date of this act, but any extension of such facilities or any
new facilities located outside of and more than three (3) miles from the
municipality's corporate limits, shall be subject to the requirements of
this section, nor shall this section apply to any municipally owned or op-
erated electric or gas utility furnishing electricity or gas to a facility owned
or jointly owned by such municipality and located outside the corporate
limits of such municipality.
  Sec. 4.  K.S.A. 12-808a, 12-808b and 66-131 are hereby repealed.
  Sec. 5.  This act shall take effect and be in force from and after its
publication in the statute book.