Session of 1999
         
SENATE BILL No. 153
         
By Committee on Transportation and Tourism
          
1-27
          
  9             AN  ACT relating to transportation; providing for a comprehensive trans-
10             portation program; amending K.S.A. 12-1,119, 68-2033, 68-2073, 68-
11             2096, 68-2315, 68-2316, 75-5035, 75-5048 and 75-5061 and K.S.A.
12             1998 Supp. 12-187, 68-416 and 68-2314 and repealing the existing
13             sections; also repealing K.S.A. 68-417, 68-417a and 68-417b.
14      
15       Be it enacted by the Legislature of the State of Kansas:
16             Section  1. K.S.A. 1998 Supp. 12-187 is hereby amended to read as
17       follows: 12-187. (a)  (1) No city shall impose a retailers' sales tax under
18       the provisions of this act without the governing body of such city having
19       first submitted such proposition to and having received the approval of a
20       majority of the electors of the city voting thereon at an election called
21       and held therefor. The governing body of any city may submit the ques-
22       tion of imposing a retailers' sales tax and the governing body shall be
23       required to submit the question upon submission of a petition signed by
24       electors of such city equal in number to not less than 10% of the electors
25       of such city.
26             (2) The governing body of any class B city located in any county which
27       does not impose a countywide retailers' sales tax pursuant to paragraph
28       (5) of subsection (b) may submit the question of imposing a retailers' sales
29       tax at the rate of .25%, .5%, .75% or 1% and pledging the revenue re-
30       ceived therefrom for the purpose of financing the provision of health care
31       services, as enumerated in the question, to the electors at an election
32       called and held thereon. The tax imposed pursuant to this paragraph shall
33       be deemed to be in addition to the rate limitations prescribed in K.S.A.
34       12-189, and amendments thereto. As used in this paragraph, health care
35       services shall include but not be limited to the following: Local health
36       departments, city, county or district hospitals, city or county nursing
37       homes, preventive health care services including immunizations, prenatal
38       care and the postponement of entry into nursing homes by home health
39       care services, mental health services, indigent health care, physician or
40       health care worker recruitment, health education, emergency medical
41       services, rural health clinics, integration of health care services, home
42       health services and rural health networks.
43             (b)  (1) The board of county commissioners of any county may submit

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  1       the question of imposing a countywide retailers' sales tax to the electors
  2       at an election called and held thereon, and any such board shall be re-
  3       quired to submit the question upon submission of a petition signed by
  4       electors of such county equal in number to not less than 10% of the
  5       electors of such county who voted at the last preceding general election
  6       for the office of secretary of state, or upon receiving resolutions request-
  7       ing such an election passed by not less than 23 of the membership of the
  8       governing body of each of one or more cities within such county which
  9       contains a population of not less than 25% of the entire population of the
10       county, or upon receiving resolutions requesting such an election passed
11       by 23 of the membership of the governing body of each of one or more
12       taxing subdivisions within such county which levy not less than 25% of
13       the property taxes levied by all taxing subdivisions within the county.
14             (2) The board of county commissioners of Atchison, Barton, Butler,
15       Cowley, Cherokee, Crawford, Ford, Jefferson, Lyon, Montgomery, Ot-
16       tawa, Riley, Saline, Seward and Wyandotte counties may submit the ques-
17       tion of imposing a countywide retailers' sales tax and pledging the revenue
18       received therefrom for the purpose of financing the construction or re-
19       modeling of a courthouse, jail, law enforcement center facility or other
20       county administrative facility, to the electors at an election called and
21       held thereon. The tax imposed pursuant to this paragraph shall expire
22       when sales tax sufficient to pay all of the costs incurred in the financing
23       of such facility has been collected by retailers as determined by the sec-
24       retary of revenue. Nothing in this paragraph shall be construed to allow
25       the rate of tax imposed by Butler, Cowley, Lyon, Montgomery or Riley
26       county pursuant to this paragraph to exceed or be imposed at any rate
27       other than the rates prescribed in K.S.A. 12-189, and amendments
28       thereto.
29             (3)  (A) Except as otherwise provided in this paragraph, the result of
30       the election held on November 8, 1988, on the question submitted by
31       the board of county commissioners of Jackson county for the purpose of
32       increasing its countywide retailers' sales tax by 1% is hereby declared
33       valid, and the revenue received therefrom by the county shall be ex-
34       pended solely for the purpose of financing the Banner Creek reservoir
35       project. The tax imposed pursuant to this paragraph shall take effect on
36       the effective date of this act and shall expire not later than five years after
37       such date.
38             (B) The result of the election held on November 8, 1994, on the
39       question submitted by the board of county commissioners of Ottawa
40       county for the purpose of increasing its countywide retailers' sales tax by
41       1% is hereby declared valid, and the revenue received therefrom by the
42       county shall be expended solely for the purpose of financing the erection,
43       construction and furnishing of a law enforcement center and jail facility.

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  1             (4) The board of county commissioners of Finney and Ford counties
  2       may submit the question of imposing a countywide retailers' sales tax at
  3       the rate of .25% and pledging the revenue received therefrom for the
  4       purpose of financing all or any portion of the cost to be paid by Finney
  5       or Ford county for construction of highway projects identified as system
  6       enhancements under the provisions of paragraph (5) of subsection (b) of
  7       K.S.A. 68-2314, and amendments thereto, to the electors at an election
  8       called and held thereon. Such election shall be called and held in the
  9       manner provided by the general bond law. The tax imposed pursuant to
10       this paragraph shall expire upon the payment of all costs authorized pur-
11       suant to this paragraph in the financing of such highway projects. Nothing
12       in this paragraph shall be construed to allow the rate of tax imposed by
13       Finney or Ford county pursuant to this paragraph to exceed the maximum
14       rate prescribed in K.S.A. 12-189, and amendments thereto. If any funds
15       remain upon the payment of all costs authorized pursuant to this para-
16       graph in the financing of such highway projects in Finney county, the
17       state treasurer shall remit such funds to the treasurer of Finney county
18       and upon receipt of such moneys shall be deposited to the credit of the
19       county road and bridge fund. If any funds remain upon the payment of
20       all costs authorized pursuant to this paragraph in the financing of such
21       highway projects in Ford county, the state treasurer shall remit such funds
22       to the treasurer of Ford county and upon receipt of such moneys shall
23       be deposited to the credit of the county road and bridge fund.
24             (5) The board of county commissioners of any county may submit the
25       question of imposing a retailers' sales tax at the rate of .25%, .5%, .75%
26       or 1% and pledging the revenue received therefrom for the purpose of
27       financing the provision of health care services, as enumerated in the ques-
28       tion, to the electors at an election called and held thereon. Whenever any
29       county imposes a tax pursuant to this paragraph, any tax imposed pursuant
30       to paragraph (2) of subsection (a) by any city located in such county shall
31       expire upon the effective date of the imposition of the countywide tax,
32       and thereafter the state treasurer shall remit to each such city that portion
33       of the countywide tax revenue collected by retailers within such city as
34       certified by the director of taxation. The tax imposed pursuant to this
35       paragraph shall be deemed to be in addition to the rate limitations pre-
36       scribed in K.S.A. 12-189, and amendments thereto. As used in this par-
37       agraph, health care services shall include but not be limited to the follow-
38       ing: Local health departments, city or county hospitals, city or county
39       nursing homes, preventive health care services including immunizations,
40       prenatal care and the postponement of entry into nursing homes by home
41       care services, mental health services, indigent health care, physician or
42       health care worker recruitment, health education, emergency medical
43       services, rural health clinics, integration of health care services, home

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  1       health services and rural health networks.
  2             (6) The board of county commissioners of Allen county may submit
  3       the question of imposing a countywide retailers' sales tax at the rate of
  4       .5% and pledging the revenue received therefrom for the purpose of
  5       financing the costs of operation and construction of a solid waste disposal
  6       area or the modification of an existing landfill to comply with federal
  7       regulations to the electors at an election called and held thereon. The tax
  8       imposed pursuant to this paragraph shall expire upon the payment of all
  9       costs incurred in the financing of the project undertaken. Nothing in this
10       paragraph shall be construed to allow the rate of tax imposed by Allen
11       county pursuant to this paragraph to exceed or be imposed at any rate
12       other than the rates prescribed in K.S.A. 12-189 and amendments
13       thereto.
14             (7) The board of county commissioners of Dickinson county may sub-
15       mit the question of imposing a countywide retailers' sales tax at the rate
16       of .50% and pledging the revenue received therefrom for the purpose of
17       financing the costs of roadway construction and improvement to the elec-
18       tors at an election called and held thereon. The tax imposed pursuant to
19       this paragraph shall expire after five years from the date such tax is first
20       collected.
21             (8) The board of county commissioners of Sherman county may sub-
22       mit the question of imposing a countywide retailers' sales tax at the rate
23       of .25%, .5% or .75% and pledging the revenue therefrom for the purpose
24       of financing the costs of the county roads 64 and 65 construction and
25       improvement project. The tax imposed pursuant to this paragraph shall
26       expire upon payment of all costs authorized pursuant to this paragraph
27       in the financing of such project.
28             (c) The boards of county commissioners of any two or more contig-
29       uous counties, upon adoption of a joint resolution by such boards, may
30       submit the question of imposing a retailers' sales tax within such counties
31       to the electors of such counties at an election called and held thereon
32       and such boards of any two or more contiguous counties shall be required
33       to submit such question upon submission of a petition in each of such
34       counties, signed by a number of electors of each of such counties where
35       submitted equal in number to not less than 10% of the electors of each
36       of such counties who voted at the last preceding general election for the
37       office of secretary of state, or upon receiving resolutions requesting such
38       an election passed by not less than 23 of the membership of the governing
39       body of each of one or more cities within each of such counties which
40       contains a population of not less than 25% of the entire population of
41       each of such counties, or upon receiving resolutions requesting such an
42       election passed by 23 of the membership of the governing body of each
43       of one or more taxing subdivisions within each of such counties which

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  1       levy not less than 25% of the property taxes levied by all taxing subdivi-
  2       sions within each of such counties.
  3             (d) Any city retailers' sales tax in the amount of .5% being levied by
  4       a city on July 1, 1990, shall continue in effect until repealed in the manner
  5       provided herein for the adoption and approval of such tax or until re-
  6       pealed by the adoption of an ordinance so providing. In addition to any
  7       city retailers' sales tax being levied by a city on July 1, 1990, any such city
  8       may adopt an additional city retailers' sales tax in the amount of .25% or
  9       .5%, provided that such additional tax is adopted and approved in the
10       manner provided for the adoption and approval of a city retailers' sales
11       tax. Any countywide retailers' sales tax in the amount of .5% or 1% in
12       effect on July 1, 1990, shall continue in effect until repealed in the manner
13       provided herein for the adoption and approval of such tax.
14             (e) A class D city shall have the same power to levy and collect a city
15       retailers' sales tax that a class A city is authorized to levy and collect and
16       in addition, the governing body of any class D city may submit the ques-
17       tion of imposing an additional city retailers' sales tax in the amount of
18       .125%, .25%, .5% or .75% and pledging the revenue received therefrom
19       for economic development initiatives, strategic planning initiatives or for
20       public infrastructure projects including buildings to the electors at an
21       election called and held thereon. Any additional sales tax imposed pur-
22       suant to this paragraph shall expire no later than five years from the date
23       of imposition thereof.
24             (f) Any city or county proposing to adopt a retailers' sales tax shall
25       give notice of its intention to submit such proposition for approval by the
26       electors in the manner required by K.S.A. 10-120, and amendments
27       thereto. The notices shall state the time of the election and the rate and
28       effective date of the proposed tax. If a majority of the electors voting
29       thereon at such election fail to approve the proposition, such proposition
30       may be resubmitted under the conditions and in the manner provided in
31       this act for submission of the proposition. If a majority of the electors
32       voting thereon at such election shall approve the levying of such tax, the
33       governing body of any such city or county shall provide by ordinance or
34       resolution, as the case may be, for the levy of the tax. Any repeal of such
35       tax or any reduction or increase in the rate thereof, within the limits
36       prescribed by K.S.A. 12-189, and amendments thereto, shall be accom-
37       plished in the manner provided herein for the adoption and approval of
38       such tax except that the repeal of any such city retailers' sales tax may be
39       accomplished by the adoption of an ordinance so providing.
40             (g) The sufficiency of the number of signers of any petition filed
41       under this section shall be determined by the county election officer.
42       Every election held under this act shall be conducted by the county elec-
43       tion officer.

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  1             (h) The governing body of the city or county proposing to levy any
  2       retailers' sales tax shall specify the purpose or purposes for which the
  3       revenue would be used, and a statement generally describing such pur-
  4       pose or purposes shall be included as a part of the ballot proposition.
  5             Sec.  2. K.S.A. 12-1,119 is hereby amended to read as follows: 12-
  6       1,119. The governing body of any city may provide, by ordinance, for a
  7       consolidated street and highway fund to which may be credited moneys
  8       received by the city from state payments under the provisions of K.S.A.
  9       68-416 and 79-3425c, and amendments thereto. The ordinance creating
10       such fund also may provide for annually budgeting the transfer of moneys
11       in the general or other operating funds of the city budgeted for street
12       and highway purposes to the consolidated street and highway fund. Mon-
13       eys in such fund shall be used solely for street and highway purposes.
14       Moneys received pursuant to subsection (b)(3) (a) of K.S.A. 68-416, and
15       amendments thereto, and credited to such fund shall be used solely for
16       the maintenance of streets and highways in the city designated by the
17       secretary of transportation as city connecting links.
18             Sec.  3. K.S.A. 1998 Supp. 68-416 is hereby amended to read as fol-
19       lows: 68-416. (a) All funds received by the various counties from the sale
20       of benefit-district bonds heretofore or hereafter issued, under the pro-
21       visions of K.S.A. 68-701 and 68-709, and amendments thereto, shall be
22       transferred by the county treasurers to the state treasurer to be placed in
23       the highway fund. Such amounts shall be expended in the counties from
24       which they are received and for the purposes for which such bonds were
25       issued. Nothing in this act shall be construed to relieve any county in
26       which a benefit district has been organized under the provisions of K.S.A.
27       68-701 et seq., and amendments thereto, from the duty and liability to
28       issue and sell bonds under the provisions thereof in the amount necessary
29       to pay such part of the cost of the construction of such benefit district
30       roads in the benefit district required to be paid by the county, township
31       and benefit district. Any unexpended balance remaining in the fund in
32       which is placed that part of the fees for registration sent to the vehicle
33       department or other official designated by law to receive the same, and
34       appropriated for use in the administration of the motor-vehicle registra-
35       tion act, unexpended at the end of any calendar year, shall be placed in
36       the highway fund.
37             (b) The state highway fund shall be apportioned as follows:
38             (1) The fund known as the "state highway benefit district fund" is
39       discontinued and hereafter the highway fund shall be used for the pay-
40       ment and reimbursement of benefit district costs and assessments for
41       such benefit districts that have been and may hereafter be constructed
42       as a part of the state highway system. On the effective date of this act the
43       state treasurer shall transfer all state highway benefit district funds to the

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  1       highway fund.
  2             (2) (a) The secretary of transportation annually shall apportion and
  3       distribute quarterly, on the first day of January, April, July and October,
  4       to cities on the state highway system from the state highway fund moneys
  5       at the rate of $2,000 $3,000 per year per lane per mile for the mainte-
  6       nance of streets and highways in cities designated by the secretary as city
  7       connecting links. Unless a consolidated street and highway fund is estab-
  8       lished pursuant to K.S.A. 12-1,119, and amendments thereto, all moneys
  9       distributed by the secretary shall be credited to the street and alley funds
10       of such cities. All moneys so distributed shall be used solely for the main-
11       tenance of city connecting links. Maintenance of such city connecting
12       links shall be as prescribed in K.S.A. 68-416a, and amendments thereto.
13       As used in this subsection, "lane" means the portion of the roadway for
14       use of moving traffic of a standard width prescribed by the secretary. In
15       lieu of such apportionment, the secretary, by and with the consent of the
16       governing body of any city within the state of Kansas, may maintain such
17       streets within the city and pay for such maintenance from the highway
18       fund.
19             (3) (b) All of the remainder of such highway fund shall be used by
20       the secretary of transportation for: (A)
21             (1) The construction, improvement, reconstruction and maintenance
22       of the state highway system;
23             (B) (2) improvements in transportation programs to aid the elderly
24       and disabled; (C)
25             (3) the preservation and revitalization of rail service in accordance
26       with K.S.A. 75-5040 through 75-5050, and amendments thereto;
27             (4) the planning, constructing, reconstructing or rehabilitating the
28       facilities of public use general aviation airports, in accordance with K.S.A.
29       75-5061, and amendments thereto;
30             (5) the support and maintenance of the department of transportation;
31       (D)
32             (6) the expenses of administering the motor vehicle registration and
33       drivers' license laws; and (E)
34             (7) the payment of losses to department of transportation employees
35       authorized by K.S.A. 1998 Supp. 75-5062, and amendments thereto. All
36       apportionments and distribution provided for by this section shall be
37       made quarterly on the first day of January, April, July and October of
38       each year.
39             Sec.  4. K.S.A. 68-2033 is hereby amended to read as follows: 68-
40       2033. The secretary of transportation and the authority are hereby au-
41       thorized and empowered to make and enter into any and all contracts
42       and agreements, including (but without limitation) any contract or agree-
43       ment for the removal or construction of any bridge or other highway

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  1       facility which they may deem necessary, desirable or incidental to the
  2       financing, construction, maintenance, repair or operation of any turnpike
  3       project financed under the provisions of this act.
  4             With respect to any turnpike project financed under the provisions of
  5       this act, the secretary is authorized and empowered to contract or agree
  6       with the authority to pay to the authority from the state highway fund,
  7       upon order or voucher of the secretary of transportation in the manner
  8       provided by law to the director of accounts and reports, in each year, such
  9       amount or amounts as shall be required in such year to make up any
10       deficiency in the revenues received from the operation and ownership of
11       such turnpike project in such year, over and above the cost of mainte-
12       nance, repair and operation of such turnpike project incurred in such
13       year; (i) for paying the interest on all turnpike revenue bonds or turnpike
14       revenue refunding bonds issued by the authority in connection with such
15       turnpike projects; (ii) for retiring such bonds by their maturity or matur-
16       ities; and (iii) for paying the premium, if any, on a specified aggregate
17       principal amount of such bonds which would be payable in such year if
18       such principal amount of bonds were to be redeemed prior to their ma-
19       turity or maturities. The amount which is required in each such year to
20       provide for paying the interest on such bonds and for retiring such bonds
21       by their maturity or maturities shall be determined as provided in such
22       contract or agreement. Any such payments required to be made pursuant
23       to such contract or agreement may be pledged or assigned by the au-
24       thority in the same manner as tolls and other revenues of such turnpike
25       project. Any such contract or agreement shall provide for reimbursement
26       by the authority, from tolls or other revenues of such turnpike projects,
27       to the secretary of transportation for the credit of the state highway fund,
28       at any time or times and under such terms and conditions as may be set
29       forth therein, of any amounts previously paid to the authority by the
30       secretary pursuant to the provisions of this paragraph: Provided, how-
31       ever,, except that if the revenues received from the operation and own-
32       ership of such turnpike project in any year, over and above the cost of
33       maintenance, repair and operation of such turnpike project incurred in
34       such year, shall exceed one hundred fifty percent (150%) 150% of clauses
35       (i), (ii) and (iii) above for such year, such excess must be reimbursed to
36       the secretary, for the credit of the state highway fund, until all amounts
37       previously paid to the authority by the secretary of transportation have
38       been reimbursed to said the secretary.
39             Any payments provided to be made in any year pursuant to the pro-
40       visions of this section to the authority from the state highway fund shall
41       be a lien and claim on the portion of said the highway fund which is made
42       available to the secretary of transportation by the provisions of subsection
43       (4) of K.S.A. 68-416, and amendments thereto, to be used by said secretary

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  1       in the construction, improvement, reconstruction and maintenance of the
  2       state highway system and the support and maintenance of the department
  3       of transportation and the expenses of administering the motor vehicle
  4       registration and drivers license laws; but any such payments provided to
  5       be made shall not be a lien or claim on any of the sums now provided by
  6       subsections (1), (2) and (3) of K.S.A. 68-416: Provided, however,, and
  7       amendments thereto, except that the secretary of transportation and the
  8       authority may determine any priority as to lien and claim on said the fund
  9       as between any such payments to the authority from said the fund on
10       account of any turnpike projects financed under the provisions of this act.
11       The laws of Kansas shall not be repealed or amended so as to cause the
12       moneys available in the state highway fund for making any payments to
13       the authority provided to be made pursuant to the provisions of this sec-
14       tion to be insufficient to make any such payments.
15             The provisions of any contract or agreement entered into pursuant to
16       the provisions of this section may be enforced by the authority or by the
17       trustee under any trust agreement authorized by the provisions of K.S.A.
18       68-2038, and amendments thereto.
19             Sec.  5. K.S.A. 68-2073 is hereby amended to read as follows: 68-
20       2073. The secretary of transportation and the authority are hereby au-
21       thorized and empowered to make and enter into any and all contracts
22       and agreements, including (but without limitation) any contract or agree-
23       ment for the removal or construction of any bridge or other highway
24       facility which they may deem necessary, desirable or incidental to the
25       financing, construction, maintenance, repair or operation of any highway
26       project financed under the provisions of this act.
27             With respect to any highway project financed under the provisions of
28       this act, the secretary of transportation is authorized and empowered to
29       contract or agree with the authority to pay to the authority from the state
30       highway fund, upon order or voucher of the secretary in the manner
31       provided by law to the director of accounts and reports, in each year, such
32       amount or amounts as shall be required in such year to make up any
33       deficiency in the revenues received from the operation and ownership of
34       any highway project in such year, over and above the cost of maintenance,
35       repair and operation of such highway project and the creation of reserves
36       for such purposes in such year, (i) for paying the interest on all highway
37       revenue bonds or highway revenue refunding bonds issued by the au-
38       thority in connection with any such highway project, (ii) for retiring such
39       bonds by their maturity or maturities, and (iii) for paying the premium,
40       if any, on a specified aggregate principal amount of such bonds which
41       would be payable in such year if such principal amount of bonds were to
42       be redeemed prior to their maturity or maturities. The amount which is
43       required in each such year to provide for paying the interest on such

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  1       bonds and for retiring such bonds on or prior to their maturity or matur-
  2       ities shall be determined as provided in such contract or agreement. Any
  3       such payments required to be made pursuant to such contract or agree-
  4       ment may be pledged or assigned by the authority in the same manner
  5       as tolls and other revenues of such highway project. Any such contract or
  6       agreement shall provide for reimbursement by the authority, from tolls
  7       or other revenues of such highway project to the secretary of transpor-
  8       tation for the credit of the state highway fund, at any time or times and
  9       under such terms and conditions as may be set forth therein, if any
10       amounts previously paid to the authority by the secretary pursuant to the
11       provisions of this paragraph: Provided, however,, except that if the reve-
12       nues received from the operation and ownership of such highway project
13       in any year, over and above the cost of maintenance, repair and operation
14       of such highway project incurred in such year, shall exceed one hundred
15       fifty percent (150%) 150% of clauses (i), (ii) and (iii) above for such year,
16       such excess must be reimbursed to the secretary of transportation, for
17       the credit of the state highway fund, until all amounts previously paid to
18       the authority by the secretary of transportation have been reimbursed to
19       the secretary.
20             Any payments provided to be made in any year pursuant to the pro-
21       visions of this section to the authority from the state highway fund shall
22       be a lien and claim on the portion of said the highway fund which is made
23       available to the secretary of transportation by the provisions of subsection
24       (b)(4) of K.S.A. 68-416, and amendments thereto, to be used by said
25       secretary in the construction, improvement, reconstruction and mainte-
26       nance of the state highway system and the support and maintenance of
27       the department of transportation and the expenses of administering the
28       motor vehicle registration and drivers license laws; but any such payments
29       provided to be made shall not be a lien or claim on any of the sums now
30       provided by subsections (b)(1), (2) and (3) of K.S.A. 68-416, and amend-
31       ments thereto, and such payments shall be subject to any prior lien
32       thereon, if any, created by similar contract heretofore made and entered
33       into by and between the secretary of transportation and the Kansas turn-
34       pike authority: Provided, however,, except that the secretary and the au-
35       thority may determine any priority as to lien and claim on said the fund
36       as between any such payments to the authority from said the fund on
37       account of any highway projects financed under the provisions of this act.
38       The laws of Kansas shall not be repealed or amended so as to cause the
39       moneys available in the state highway fund for making any payments to
40       the authority provided to be made pursuant to the provisions of this sec-
41       tion to be insufficient to make any such payments.
42             The provisions of any contract or agreement entered into pursuant to
43       the provisions of this section may be enforced by the authority or by the

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  1       trustee under any trust agreement authorized by the provisions of K.S.A.
  2       68-2078, and amendments thereto.
  3             Sec.  6. K.S.A. 68-2096 is hereby amended to read as follows: 68-
  4       2096. The secretary of transportation and the authority are hereby au-
  5       thorized and empowered to make and enter into any and all contracts
  6       and agreements, including (but without limitation) any contract or agree-
  7       ment for the removal or construction of any bridge or other highway
  8       facility which they may deem necessary, desirable or incidental to the
  9       financing, construction, maintenance, repair or operation of any highway
10       project financed under the provisions of this act.
11             With respect to any highway project financed under the provisions of
12       this act, the secretary of transportation is authorized, empowered and
13       directed to contract or agree with the authority to pay to the authority
14       from the state freeway fund or state highway fund, upon order or voucher
15       of the secretary in the manner provided by law to the director of accounts
16       and reports, in each year, such amount or amounts as shall be required
17       in such year to make up any deficiency in the revenues received from the
18       operation and ownership of any highway project in such year, over and
19       above the cost of maintenance, repair and operation of such highway
20       project and the creation of reserves for such purposes in such year, (i)
21       for paying the interest on all highway revenue bonds or highway revenue
22       refunding bonds issued by the authority in connection with any such high-
23       way project, (ii) for retiring such bonds by their maturity or maturities,
24       and (iii) for paying the premium, if any, on a specified aggregate principal
25       amount of bonds which would be payable in such year if such principal
26       amount of bonds were to be redeemed prior to their maturity or matur-
27       ities. Any contract or agreement entered into pursuant to this section shall
28       provide that all payments to the authority pursuant to this section shall
29       be made from the state freeway fund, unless the moneys available in said
30       fund for making such payments are insufficient; and in such event, such
31       contract or agreement shall provide that any additional moneys needed
32       to make any such payment or payments shall be paid from the state high-
33       way fund. The amount which is required in each such year to provide for
34       paying the interest on such bonds and for retiring such bonds on or prior
35       to their maturity or maturities shall be determined as provided in such
36       contract or agreement. Any such payments required to be made pursuant
37       to such contract or agreement may be pledged or assigned by the au-
38       thority in the same manner as tolls and other revenues of such highway
39       project. Any such contract or agreement shall provide for reimbursement
40       by the authority, from tolls or other revenues of such highway project to
41       the secretary of transportation for the credit of the state highway fund or
42       state freeway fund, at any time or times and under such terms and con-
43       ditions as may be set forth therein, of any amounts previously paid to the

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  1       authority by the secretary of transportation pursuant to the provisions of
  2       this paragraph: Provided, however,, except that if the revenues received
  3       from the operation and ownership of such highway project in any year,
  4       over and above the cost of maintenance, repair and operation of such
  5       highway project incurred in such year, shall exceed one hundred fifty
  6       percent (150%) 150% of clauses (i), (ii) and (iii) above for such year, such
  7       excess must be reimbursed to the secretary, for the credit of the state
  8       highway fund or state freeway fund, until all amounts previously paid to
  9       the authority by the secretary have been reimbursed to the secretary. Any
10       moneys paid by the authority to the secretary pursuant to this section as
11       reimbursement for moneys previously paid from the state highway fund
12       or state freeway fund shall be deposited by the secretary in the state
13       treasury, and the state treasurer shall credit such moneys to the state
14       highway fund from which payments to the authority were made. Where
15       payments to the authority have been made from both the state highway
16       fund and state freeway fund, moneys paid as reimbursement therefor
17       shall be credited by the state treasurer to each such fund in the proportion
18       provided in the contract or agreement authorizing payments to the
19       authority.
20             Any payments authorized by subsection (b) of K.S.A. 68-2301, and
21       provided to be made to the authority from the state freeway fund in any
22       year pursuant to the provisions of this section shall be a lien and claim
23       on that portion of said freeway fund which is not otherwise obligated for
24       the payment of the principal of and interest on the highway bonds issued
25       pursuant to K.S.A. 68-2304, and the pledge by the authority of any mon-
26       eys paid to the authority from the freeway fund pursuant to this section
27       shall be subordinate to the lien and claim on such fund under the pro-
28       visions of K.S.A. 68-2304: Provided, That the secretary of transportation
29       and the authority may determine any priority as to lien and claim on said
30       fund as between any such payments to the authority from said fund on
31       account of any highway projects financed under the provisions of this act.
32       The laws of Kansas shall not be repealed or amended so as to cause the
33       moneys available in the state freeway fund for making any payments to
34       the authority provided to be made pursuant to the provisions of this sec-
35       tion to be insufficient to make any such payments.
36             Any payments provided to be made in any year pursuant to the pro-
37       visions of this section to the authority from the state highway fund shall
38       be a lien and claim on the portion of said the highway fund which is made
39       available to the secretary of transportation by the provisions of subsection
40       (b)(4) of K.S.A. 68-416 to be used by said secretary in the construction,
41       improvement, reconstruction and maintenance of the state highway sys-
42       tem and the support and maintenance of the department of transportation
43       and the expenses of administering the motor vehicle registration and driv-

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  1       ers license laws;, and amendments thereto, but any such payments pro-
  2       vided to be made shall not be a lien or claim on any of the sums now
  3       provided by subsections (b)(1), (2) and (3) of K.S.A. 68-416, and amend-
  4       ments thereto, and such payments shall be subject to any prior lien
  5       thereon, if any, created by similar contract heretofore made and entered
  6       into by and between the secretary and the Kansas turnpike authority:
  7       Provided, however,, except that the secretary and the authority may de-
  8       termine any priority as to lien and claim on said the fund as between any
  9       such payments to the authority from said the fund on account of any
10       highway projects financed under the provisions of this act. The laws of
11       Kansas shall not be repealed or amended so as to cause the moneys avail-
12       able in the state highway fund for making any payments to the authority
13       provided to be made pursuant to the provisions of this section to be
14       insufficient to make any such payments.
15             The provisions of any contract or agreement entered into pursuant to
16       the provisions of this section may be enforced by the authority or by the
17       trustee under any trust agreement authorized by the provisions of K.S.A.
18       68-20,101 and amendments thereto.
19             Sec.  7. K.S.A. 1998 Supp. 68-2314 is hereby amended to read as
20       follows: 68-2314. (a) In order to provide for the construction and recon-
21       struction of a modern and efficient system of highways within the state,
22       the secretary of transportation is hereby authorized and directed to ini-
23       tiate a highway program which shall include highway and bridge projects
24       selected by the secretary of transportation using the transportation de-
25       partment's project selection method.
26             It is the intent of the legislature that the highway projects selected shall
27       represent, as nearly as possible, the top 16% of the existing state highway
28       system needs as determined by the transportation department's prioriti-
29       zation method. It is the intent of the legislature that priority bridge pro-
30       jects shall be increased by, as nearly as possible, 20%. It is the intent of
31       the legislature that, as nearly as possible, the amount of $600,000,000
32       shall be expended or committed to be expended for system enhancements
33       for the period beginning July 1, 1989, through June 30, 1997.
34             (b) In addition, the secretary of transportation shall include in the
35       highway program the following work categories and activities:
36             (1) An increase in substantial maintenance to a level sufficient to ar-
37       rest and reverse the decline in the surface condition of the highways and
38       bridges; In order to plan, develop and operate or coordinate the devel-
39       opment and operation of the various modes and systems of transportation
40       within the state, the secretary of transportation is hereby authorized and
41       directed to initiate a comprehensive transportation program.
42             (b) The comprehensive transportation program shall provide for the
43       construction, improvement, reconstruction and maintenance of the state

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  1       highway system. These expenditures may include but not be limited to the
  2       following:
  3             (1) Maintenance programs to efficiently maintain a safe state highway
  4       system in its original or improved condition. It is the intent of the legis-
  5       lature that the surface condition of the state highway system and its
  6       bridges, as measured by the Kansas department of transportation pave-
  7       ment and bridge management systems, shall be maintained or improved;
  8             (2) construction and reconstruction programs to develop, to the extent
  9       practical, the state highway system including major modification projects
10       to improve service, comfort, capacity, condition, economy or safety of the
11       existing system and priority bridge projects to replace or rehabilitate
12       bridges that have a deteriorated condition or that have deficiencies in
13       load carrying capacity, width or traffic service;
14             (3) system enhancement projects which include additions to the sys-
15       tem of highways or which substantially improve safety, relieve congestion,
16       improve access or enhance economic development. It is the intent of the
17       legislature that, as nearly as possible, the amount of $2,000,000,000 shall
18       be expended or committed to be expended for system enhancements for
19       the period beginning July 1, 1999, through June 30, 2007. The Kansas
20       department of transportation shall utilize the selection methodology de-
21       veloped by the department, to select system enhancement projects;
22             (2) (4) maximize the state's use of federally available funds;
23             (3) (5) increase the state's participation in partnership with the cities
24       and counties including:
25             (A) Geometric improvements on city connecting links;
26             (B) city connecting link payments;
27             (C) economic development projects;
28             (4) improvements in transportation programs to aid the elderly and
29       disabled; and
30             (5) system enhancements, which include additions and special pro-
31       jects that substantially improve safety, relieve congestion, improve ac-
32       cesses or enhance economic development. The department of transpor-
33       tation shall develop and utilize criteria for the selection of system
34       enhancement projects.
35             (c) The comprehensive transportation program shall provide for a
36       railroad program to provide assistance in accordance with K.S.A. 75-5040
37       through 75-5050, and amendments thereto, for the preservation and re-
38       vitalization of rail service in the state.
39             (d) The comprehensive transportation program shall provide for an
40       aviation program to provide assistance for the planning, constructing,
41       reconstructing or rehabilitating the facilities of public use general aviation
42       airports, in accordance with K.S.A. 75-5061, and amendments thereto.
43             (e) The comprehensive transportation program shall provide for pub-

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  1       lic transit programs to aid elderly and disabled persons, in accordance
  2       with K.S.A. 75-5032 through 75-5038, and amendments thereto, and
  3       K.S.A. 75-5051 through 75-5058, and amendments thereto.
  4             (c) (f) All contracts for the construction, reconstruction and mainte-
  5       nance of the highway system under the provisions of this act shall be
  6       subject to the provisions of K.S.A. 68-407 through 68-411, and amend-
  7       ments thereto.
  8             Sec.  8. K.S.A. 68-2315 is hereby amended to read as follows: 68-
  9       2315. Annually, prior to the 10th day of each regular session of the leg-
10       islature, the secretary of transportation shall submit a written report to
11       the governor and each member of the legislature providing:
12             (a) A comprehensive financial report of all funds for the preceding
13       year which shall include a report by independent public accountants at-
14       testing that the financial statements present fairly the financial position
15       of the Kansas department of transportation in conformity with generally
16       accepted accounting principles;
17             (b) a detailed explanation of the methods or criteria employed to
18       select construction projects, including a definition of the program ele-
19       ments in subsections (a) and (b) of K.S.A. 68-2314 in the selection of
20       substantial maintenance and construction projects and in the awarding
21       of assistance to cities, counties or other transportation providers;
22             (c) the proposed allocation and expenditure of moneys and proposed
23       work plan for the current fiscal year and at least the next five years;
24             (d) information concerning construction work completed in the pre-
25       ceding fiscal year and construction work in progress;
26             (e) specific recommendations for any statutory changes necessary for
27       the successful completion of the comprehensive transportation program
28       specified in K.S.A. 68-2314, and amendments thereto, or efficient and
29       effective operation of the Kansas department of transportation; and
30             (f) an explanation of any material changes from the previous annual
31       report.
32             Sec.  9. K.S.A. 68-2316 is hereby amended to read as follows: 68-
33       2316. For the period beginning July 1, 1989 1999, through June 30, 1997
34       2007, the secretary of transportation shall expend or commit to expend,
35       from the revenue provided under the provisions of this act, at least
36       $2,500,000 $3,000,000 for highway, bridge and substantial maintenance
37       projects in each county of the state.
38             Sec.  10. K.S.A. 75-5035 is hereby amended to read as follows: 75-
39       5035. (a) There is hereby established in the state treasury the elderly and
40       disabled coordinated public transportation assistance fund. Any expend-
41       itures from the fund shall be for the coordinated development, improve-
42       ment or maintenance of transportation systems for elderly or disabled
43       persons under this act and shall be made in accordance with appropriation

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  1       acts upon warrants of the director of accounts and reports issued pursuant
  2       to vouchers approved by the secretary or by a person designated by the
  3       secretary.
  4             (b) On July 1, 1994 1999, and each July 1 thereafter, the director of
  5       accounts and reports shall transfer $1,000,000 $8,800,000 from the state
  6       highway fund to the elderly and disabled coordinated public transporta-
  7       tion assistance fund.
  8             Sec.  11. K.S.A. 75-5048 is hereby amended to read as follows: 75-
  9       5048. (a) The secretary of transportation is hereby authorized to make
10       loans or grants to a qualified entity for the purpose of facilitating the
11       financing, acquisition or rehabilitation of railroads in the state of Kansas.
12             (b) Such loans or grants shall be made upon such terms and condi-
13       tions as the secretary of transportation may deem appropriate, and such
14       loans or grants shall be made from funds credited to the rail service
15       improvement fund.
16             (c) The rail service improvement fund is hereby established in the
17       state treasury which shall be for the purpose of facilitating the financing,
18       acquisition and rehabilitation of railroads pursuant to subsection (a) of
19       this section and for the refinancing thereof. The secretary of transporta-
20       tion shall administer the rail service improvement fund. All expenditures
21       from the rail service improvement fund shall be made in accordance with
22       appropriation acts upon warrants of the director of accounts and reports
23       issued pursuant to vouchers approved by the secretary of transportation
24       or by a person or persons designated by the secretary.
25             (d) All moneys received from the federal government under the local
26       rail freight assistance program (49 U.S.C. 1654) shall be remitted to the
27       state treasurer. Upon receipt of each such remittance, the state treasurer
28       shall deposit the entire amount in the state treasury to the credit of the
29       rail service improvement fund.
30             (e) The management and investment of the rail service improvement
31       fund shall be in accordance with K.S.A. 68-2324, and amendments
32       thereto. Notwithstanding anything to the contrary, all interest or other
33       income of the investments, after payment of any management fees, shall
34       be considered income of the rail service improvement fund.
35             (f)  (1) On July 1, 1999, and each July 1 thereafter, the director of
36       accounts and reports shall transfer $5,000,000 from the state highway
37       fund to the rail service improvement fund.
38             (2) The provisions of this subsection shall expire on June 30, 2007.
39             (e) (g) "Qualified entity" means any interstate commerce commission
40       certificated railroad, a port authority established in accordance with Kan-
41       sas laws, or any entity meeting the rules and regulations established by
42       K.S.A. 75-5050, and amendments thereto.
43             Sec.  12. K.S.A. 75-5061 is hereby amended to read as follows: 75-

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  1       5061. (a) The secretary of transportation is hereby authorized and em-
  2       powered to: (1) Solicit and receive moneys from any public or private
  3       sources; and (2) establish and administer a grant program for public use
  4       general aviation airports for the purpose of planning, constructing, re-
  5       constructing or rehabilitating the facilities of such public use general avi-
  6       ation airports.
  7             (b) Such grants shall be made upon such terms and conditions as the
  8       secretary of transportation deems appropriate, and such grants shall be
  9       made from funds credited to the public use general aviation airport de-
10       velopment fund.
11             (c) The public use general aviation airport development fund is
12       hereby established in the state treasury which shall be for the purpose of
13       planning, constructing, reconstructing or rehabilitating the facilities of
14       public use general aviation airports pursuant to subsection (a) of this sec-
15       tion. All moneys received pursuant to subsection (a) shall be remitted to
16       the state treasurer at least monthly and deposited in the state treasury to
17       the credit of the public use general aviation airport development fund.
18       The secretary of transportation shall administer the public use general
19       aviation airport development fund. All expenditures from the public use
20       general aviation airport development fund shall be made in accordance
21       with appropriation acts upon warrants of the director of accounts and
22       reports issued pursuant to vouchers approved by the secretary of trans-
23       portation or by a person or persons designated by the secretary.
24             (d) On July 1, 1999, and each July 1 thereafter, the director of ac-
25       counts and reports shall transfer $3,000,000 from the state highway fund
26       to the public use general aviation airport development fund.
27             (d) (e) As used in this section "public use general aviation airport"
28       means any airport available for use by the general public for the landing
29       and taking off of aircraft, but shall not include any airport classified as a
30       primary airport by the federal aviation administration.
31             (e) (f) The secretary of transportation may adopt rules and regulations
32       for the purpose of implementing the provisions of this section. 
33       Sec.  13. K.S.A. 12-1,119, 68-417, 68-417a, 68-417b, 68-2033, 68-
34       2073, 68-2096, 68-2315, 68-2316, 75-5035, 75-5048 and 75-5061 and
35       K.S.A. 1998 Supp. 12-187, 68-416 and 68-2314 are hereby repealed.
36        Sec.  14. This act shall take effect and be in force from and after its
37       publication in the statute book.