Session of 1999
SENATE BILL No. 179
An Act concerning the high performance incentive
program; relating to eligibility therefor;
amending K.S.A. 1998 Supp. 74-50,131 and repealing the
existing section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 1998 Supp.
74-50,131 is hereby amended to read
as follows: 74-50,131. (a) As used in this act: ``Qualified firm''
means a
for-profit business establishment, subject to state income, sales
or prop-
erty taxes, identified under the manufacturing standard industrial
classi-
fication codes as in effect July 1, 1993, major groups 20 through
39, major
groups 40 through 49 51, and major groups
60 through 89, or is identified
as a corporate or regional headquarters or back-office operation of
a na-
tional or multi-nation corporation regardless of SIC code. A
business es-
tablishment may be assigned a standard industrial classification
code ac-
cording to the primary business activity at a single physical
location in
the state.
(b) In the case of firms in major groups
40 through 49 51, and major
groups 60 through 89, the business establishment must also
demonstrate
the following:
(1) More than one-half of its gross
revenues are a result of sales to
commercial or governmental customers outside the state of Kansas;
or
(2) more than one-half of its gross
revenues are a result of sales to
Kansas manufacturing firms within major groups 20 through 39;
or
(3) more than one-half of its gross
revenues are a result of a combi-
nation of sales described in (1) and (2).
(c) For purposes of determining whether
one of the average wage
options described in subsection (d) below is satisfied, business
establish-
ments located within a metropolitan county, as defined in K.S.A.
1998
Supp. 74-50,114, will be compared only to other businesses within
that
metropolitan county, and business establishments located outside of
a
metropolitan county will be compared to businesses within an
aggregation
of counties representing the business establishment's region of the
state,
which regional aggregation will exclude metropolitan counties. Such
ag-
gregation shall be determined by the department of commerce and
hous-
ing.
(d) Additionally, a business
establishment having met the criteria as
established in subsection (a) or (b) , and using the comparison
method
described in subsection (c), must meet one of the following
criteria:
(1) The establishment with 500 or fewer
full-time equivalent em-
ployees will provide an average wage that is above the average wage
paid
by all firms with 500 or fewer full-time equivalent employees which
share
the same two-digit standard industrial classification code.
(2) The establishment with 500 or fewer
full-time equivalent em-
ployees is the sole firm within its two-digit standard industrial
classifica-
tion code which has 500 or fewer full-time equivalent
employees.
(3) The establishment with more than 500
full-time equivalent em-
ployees will provide an average wage that is above the average wage
paid
by firms with more than 500 full-time equivalent employees which
share
the same two-digit standard industrial classification code.
(4) The establishment with more than 500
full-time equivalent em-
ployees is the sole firm within its two-digit standard industrial
classifica-
tion code which has 500 or more full-time equivalent employees, in
which
event it shall either provide an average wage that is above the
average
wage paid by all firms with 500 or fewer full-time equivalent
employees
which share the same two-digit standard industrial classification
code, or
be the sole firm within its two-digit standard industrial
classification code.
(e) As an alternative to the requirements
of subsections (c) and (d),
a firm having met the requirements of subsections (a) or (b), may
qualify,
if excluding taxable disbursements to company owners, the business
es-
tablishment's annual average wage must be greater than or equal to
1.5
times the aggregate average wage paid by industries covered by the
em-
ployment security law based on data maintained by the secretary of
hu-
man resources.
(f) For the purposes of this section, the
number of full-time equiva-
lent employees shall be determined by adding the number of
full-time
employees to the number of hours worked by part-time employees
di-
vided by 40.
(g) The secretary of commerce and housing
shall certify annually to
the secretary of revenue that a firm meets the criteria for a
qualified firm
and that the firm is eligible for the benefits and assistance
provided under
this act. The secretary of commerce and housing shall publish rules
and
regulations for the implementation of this act. Such rules and
regulations
shall include, but not be limited to:
(1) A definition of ``training and
education'' for purposes of K.S.A.
1998 Supp. 74-50,132 and amendments thereto.
(2) Establishment of eligibility
requirements and application proce-
dures for expenditures from the high performance incentive fund
created
in K.S.A. 1998 Supp. 74-50,133 and amendments thereto.
(3) Establishment of approval guidelines
for private consultants au-
thorized pursuant to K.S.A. 1998 Supp. 74-50,133 and amendments
thereto.
(4) Establishment of guidelines for
prioritizing business assistance
programs pursuant to K.S.A. 1998 Supp. 74-50,133 and amendments
thereto.
(5) A definition of ``commercial
customer'' for the purpose of K.S.A.
1998 Supp. 74-50,133 and amendments thereto.
(6) A definition of ``headquarters'' for
the purpose of K.S.A. 1998
Supp. 74-50,133 and amendments thereto.
Sec. 2. K.S.A. 1998 Supp. 74-50,131 is hereby
repealed.
Sec. 3. This act shall take effect and be in force
from and after its
publication in the statute book.
I hereby certify that the above BILL originated in the
SENATE, and passed that body
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Passed the HOUSE ______________________________
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APPROVED ______________________________
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