Session of 2000
         
SENATE BILL No. 662
         
By Committee on Ways and Means
         
3-14
         

10             AN  ACT concerning improvement and industrial districts; amending
11             K.S.A. 19-2786d and 19-2786e and K.S.A. 1999 Supp. 19-2755a and
12             19-2786j and repealing the existing sections.
13      
14       Be it enacted by the Legislature of the State of Kansas:
15             Section  1. K.S.A. 1999 Supp. 19-2755a is hereby amended to read
16       as follows: 19-2755a. (a) Any land located within an industrial district
17       created pursuant to K.S.A. 19-3801 et seq., and amendments thereto,
18       shall not be included within the boundaries of any improvement district
19       created pursuant to K.S.A. 19-2753 et seq., and amendments thereto,
20       unless the governing body of such improvement district or industrial dis-
21       trict approves the inclusion thereof.
22             Nothing in this section shall be construed as providing a procedure for
23       the detachment or deannexation of land located within the boundaries of
24       an improvement district.
25             (b) The board of directors of an improvement district that is adjacent
26       to an industrial district may agree pursuant to a contract with such in-
27       dustrial district that the adjacent improvement district will not annex land
28       located within such industrial district for a period not to exceed 20 years.
29       Such contract may be renewed at its expiration. Any such contract also
30       shall be binding upon any city that incorporates after the effective date
31       of such agreement if within the corporate limits of such city there is lo-
32       cated any portion of the territory of such improvement district. Such
33       contract shall not be entered into or renewed until the execution thereof
34       is authorized by a resolution adopted by the improvement district. No
35       such improvement district or city during the term of such contract, shall
36       take action to annex any land in such industrial district unless the gov-
37       erning body of such industrial district approves the inclusion thereof.
38             Sec.  2. K.S.A. 19-2786d is hereby amended to read as follows: 19-
39       2786d. (a) When all of the territory within an improvement district is
40       annexed by an incorporated a city, such city shall take over all properties
41       and assets and shall assume all debts, liabilities and obligations, and shall
42       perform all functions and services in such district and after such annex-
43       ation such district shall be abolished. The governing body of such city


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  1       shall, by ordinance, shall designate the date upon which the city shall take
  2       over and such district shall be abolished, but in no event shall such date
  3       be later than 90 days after the effective date of such annexation. The city
  4       so annexing an improvement district shall assume and pay, as a general
  5       obligation of such city, all special assessments which may have been levied
  6       against specific lots, parcels or tracts of property within such improvement
  7       district by such improvement district except special assessments for
  8       streets, lateral sewers and water distribution systems. Real property
  9       within the district shall be discharged from the lien of any special assess-
10       ments or taxes or special taxes levied to pay for the cost of improvements,
11       except special assessments or special taxes which were levied for the pur-
12       pose of paying for street improvements, lateral sewers or a water distri-
13       bution system. Any individual taxpayer who owns property within such
14       improvement district shall have the power to bring suit to force any such
15       city to abide by and carry out the terms and provisions of this section.
16             (b)  (1) Except as provided by paragraph (2) of this subsection, upon
17       incorporation of a city which includes all of the territory within an im-
18       provement district, such city shall take over all properties and assets and
19       shall assume all debts, liabilities and obligations of the district, and shall
20       perform all functions and services in such district. After such incorpora-
21       tion the district shall be abolished. The governing body of the newly
22       incorporated city shall, by ordinance, designate the date upon which the
23       city shall take over and when such district shall be dissolved, but in no
24       event shall such date be later than 90 days after the election of the gov-
25       erning body of such city. Such city shall assume and pay, as a general
26       obligation of such city, all special assessments which may have been levied
27       against specific lots, parcels or tracts of property within such improvement
28       district by such improvement district except special assessments for
29       streets, lateral sewers and water distribution systems. Real property
30       within the district shall be discharged from the lien of any special assess-
31       ments or taxes or special taxes levied to pay for the cost of improvements,
32       except special assessments or special taxes which were levied for the pur-
33       pose of paying for street improvements, lateral sewers or a water distri-
34       bution system. Any individual taxpayer who owns property within such
35       improvement district shall have the power to bring suit to force any such
36       city to abide by and carry out the terms and provisions of this section.
37             (2) Any land within an improvement district abolished pursuant to
38       paragraph (1) shall be liable for its proportionate share of all outstanding
39       indebtedness when such land is included within a city which is incorpo-
40       rated after entering into an agreement under subsection (b) of K.S.A. 19-
41       2755a, and amendments thereto, so long as no part of the industrial dis-
42       trict is annexed by such city. Except as provided by this paragraph,
43       nothing herein shall be construed to increase the liability of such land for


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  1       any indebtedness beyond that for which it otherwise would have been
  2       liable if the land had not been included within such city.
  3             Sec.  3. K.S.A. 19-2786e is hereby amended to read as follows: 19-
  4       2786e. (a) When less than all of the territory within any such improvement
  5       district is annexed by a city or is included in a newly incorporated city,
  6       the governing authorities of such city and such improvement district shall
  7       be authorized to enter into contracts in regard to the division and allo-
  8       cation of duplicate and overlapping powers, functions and duties between
  9       such agencies, and in regard to the use, improvement, control, purchase,
10       assumption and disposition of the properties, assets, debts, liabilities and
11       obligations of such district. Any such district is expressly authorized to
12       enter into agreements with such city for the operation of the district's
13       utility systems and other properties by such city and may provide for the
14       transfer, conveyance and sale of such systems and properties of whatever
15       kind and wherever situated (including properties outside of the city) to
16       such city and upon such terms and conditions as may be mutually agreed
17       upon by and between the governing bodies of such district and city. Such
18       operating contracts may extend for such period of time not exceeding 30
19       years as may be agreed upon and shall be subject to amendment, renewal
20       or termination by mutual consent of such governing bodies. No such
21       contract shall contain any provision impairing the obligation of any exist-
22       ing contract of such city or district.
23             The city shall assume and pay, as a general obligation of the city any
24       and all special assessments or special taxes levied against any of the lots,
25       parcels or tracts of land by the improvement district and such lots, parcels
26       or tracts of land shall be discharged from the lien of such special assess-
27       ments or taxes, except that the city shall not assume and agree to pay,
28       nor shall any such property be discharged from the lien of any special
29       taxes or assessments which might be levied to pay the cost of the con-
30       struction of streets, lateral sewers or water distribution systems and such
31       special taxes or assessments shall continue as a lien upon such real prop-
32       erty and shall be paid by the owners of such real property as if the same
33       had not been annexed by the city or included within a newly incorporated
34       city. In the absence of a contract between the city and the improvement
35       district such district shall be authorized to continue to exercise all the
36       powers and functions which it was empowered to exercise and perform
37       prior to such annexation or incorporation of such city, and the city shall
38       not duplicate services rendered by the district or the district's boundaries
39       without the district's consent but may perform in the district all other
40       municipal functions in which the district is not engaged.
41             (b) Any such land also shall be liable for its proportionate share of all
42       outstanding indebtedness when such land is included within a city which
43       is incorporated after entering into an agreement under subsection (b) of


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  1       K.S.A. 19-2755a, and amendments thereto, so long as no part of the in-
  2       dustrial district is annexed by such city. Except as provided in this sub-
  3       section, nothing herein shall be construed to increase the liability of such
  4       land for any indebtedness beyond that for which it otherwise would have
  5       been liable if such land had not been included within such city.
  6             Sec.  4. K.S.A. 1999 Supp. 19-2786j is hereby amended to read as
  7       follows: 19-2786j. Whenever a petition signed by the owners of at least
  8       25% of the land in a defined area located within an improvement district
  9       created pursuant to K.S.A. 19-2753, and amendments thereto, is filed
10       with the county clerk of the county in which such improvement district
11       is located requesting the board of county commissioners to hold a public
12       hearing for the purpose of determining the advisability of detaching from
13       such district the area of land described in such petition, the board of
14       county commissioners shall call and hold a public hearing within 30 days
15       after the filing of such petition. The board shall publish a notice of such
16       hearing at least once each week for two consecutive weeks in a newspaper
17       of general circulation in the county. The last publication shall be not more
18       than six days prior to the date fixed for the holding of the hearing. Fol-
19       lowing such public hearing, the board shall enter an order approving or
20       rejecting the petition for detachment. The board of county commissioners
21       shall enter an order detaching such land, if the improvement district has
22       not provided any services to such land within one year preceding the date
23       of the filing of such petition. Such order shall be effective on January 1
24       of the succeeding year. Thereupon, the board, by resolution, shall declare
25       the new boundaries of the improvement district and shall certify a copy
26       of such resolution to the county clerk.
27             Any land detached from the improvement district shall be liable for its
28       proportionate share of all outstanding indebtedness of the improvement
29       district on the date the resolution is passed by the board detaching the
30       territory. Any such land also shall be liable for its proportionate share of
31       all outstanding indebtedness when such land is included within a city
32       which is incorporated after entering into an agreement under subsection
33       (b) of K.S.A. 19-2755a, and amendments thereto, so long as no part of the
34       industrial district is annexed by such city. Except as provided by this
35       section, nothing herein shall be construed to increase the liability of such
36       land for any indebtedness beyond that for which it otherwise would have
37       been liable if the land had not been included within such city
38       Sec.  5. K.S.A. 19-2786d and 19-2786e and K.S.A. 1999 Supp. 19-
39       2755a and 19-2786j are hereby repealed.
40        Sec.  6. This act shall take effect and be in force from and after its
41       publication in the statute book.