The House met pursuant to adjournment with Speaker Shallenburger in the chair.
The roll was called with 122 members present.
Rep. Lloyd was excused on verified illness.
Reps. Carmody and E. Peterson were excused on excused absence by the Speaker.
Prayer by guest chaplain, the Rev. Kenneth Perkins, New Beginnings Baptist Church and
Chaplain of the Topeka Rescue Mission, Topeka:
Heavenly Father,
In Zechariah 10:1, the prophet Zechariah said, ``Ask ye the Lord for rain in the
time of the spring rain; so the Lord shall make bright clouds, and give them showers
of rain, and to everyone grass in the field.''
Father, just as the Israelites looked to You to bring their crops of wheat and barley
to full harvest, through the first and latter rains, we look to You in these latter days
to rain down Your Holy Spirit, that men, women, boys, and girls may know that You
are the King of Kings and Lord of Lords.
And, Lord, help us to know, as they knew, that idols, money, fame, and success
do not give us lasting happiness. Our trust is in You and in Your promises for our
future.
As we face crises in our country, in the Middle East, and in the world, we ask that
your power would rain down, that Your sovereignty would rain down, that Your
mercy and grace would rain down, that Your righteousness would rain down.
Then, Master, for these men and women here today, we pray, as Paul prayed in
II Thessalonians 1:11, 12, that each of them would be ``counted worthy of Your
calling'' for them, ``so that the name of our Lord Jesus Christ may be glorified in
them, and they in You, according to the grace of our God and the Lord Jesus Christ.''
In His Name we pray, Amen.
REFERENCE OF BILLS AND CONCURRENT RESOLUTIONS
The following bills and resolutions were referred to committees as indicated:
Appropriations: HB 3012, 3013.
COMMUNICATIONS FROM STATE OFFICERS
From Barbara J. Hinton, Legislative Post Auditor, Performance Audit Reports, Reviewing
the Vehicle Information Processing System and the Computer-Assisted Mass Appraisal Sys-
tem after Changes in State Law; and Executive Summary with Conclusions and Recom-
mendations concerning Meat Processing Plants.
From Norine Kruse, Director, Kansas Department of Commerce and Housing, Tourism
Strategy for Kansas, Final Report, March 1998.
The complete reports are kept on file and open for inspection in the office of the Chief
Clerk.
MESSAGE FROM THE SENATE
Announcing passage of SB 432, 604.
Announcing passage of HB 2564.
Announcing passage of HB 2418, as amended; HB 2718, as amended.
Announcing rejection of HB 2907.
INTRODUCTION OF SENATE BILLS AND CONCURRENT RESOLUTIONS
The following Senate bills were thereupon introduced and read by title:
SB 432, 604.
CONSENT CALENDAR
No objection was made to HB 2499; SB 506 appearing on the Consent Calendar for the
first day.
No objection was made to SB 397 appearing on the Consent Calendar for the second
day.
FINAL ACTION ON BILLS AND CONCURRENT RESOLUTIONS
HB 2876, An act establishing the Kansas local government outdoor recreation grant
program; prescribing powers, duties and functions for the secretary of wildlife and parks,
was considered on final action.
On roll call, the vote was: Yeas 107; Nays 15; Present but not voting: 0; Absent or not
voting: 3.
Absent or not voting: Carmody, Lloyd, E. Peterson.
The bill passed.
SB 198, An act relating to pharmacists and pharmacies; prescription requirements;
amending K.S.A. 1997 Supp. 65-1637 and repealing the existing section, was considered on
final action.
On roll call, the vote was: Yeas 122; Nays 0; Present but not voting: 0; Absent or not
voting: 3.
Absent or not voting: Carmody, Lloyd, E. Peterson.
The bill passed, as amended.
SB 449, An act concerning crimes, criminal procedure and punishment; relating to lesser
included offenses; relating to the sentence of death; relating to mitigating circumstances;
relating to cruelty to animals; amending K.S.A. 21-3107, 21-4626 and 22-3414 and K.S.A.
1997 Supp. 21-4310 and repealing the existing sections, was considered on final action.
On roll call, the vote was: Yeas 75; Nays 47; Present but not voting: 0; Absent or not
voting: 3.
Absent or not voting: Carmody, Lloyd, E. Peterson.
The bill passed, as amended.
EXPLANATION OF VOTE
Mr. Speaker: I vote no on SB 449. I find it unconscionable that we in this House find
it more offensive to kill a dog than to kill an unborn child. That we believe killing a canine
should be a felony, but killing a viable human fetus not even a misdemeanor. After this bill,
if Kansans kill a dog they can go to prison, but, if they kill an unborn child, they go unteth-
ered.--Gerald G. Geringer, Peggy Long, John M. Faber, Gayle Mollenkamp,
Mary Compton
SB 474, An act concerning corporations; relating to filing of articles of incorporation and
other instruments; amending K.S.A. 17-6003 and repealing the existing section, was consid-
ered on final action.
On roll call, the vote was: Yeas 114; Nays 8; Present but not voting: 0; Absent or not
voting: 3.
Absent or not voting: Carmody, Lloyd, E. Peterson.
The bill passed.
SB 485, An act concerning the uniform controlled substances act; amending K.S.A. 1997
Supp. 65-4111 and 65-4113 and repealing the existing sections, was considered on final
action.
On roll call, the vote was: Yeas 122; Nays 0; Present but not voting: 0; Absent or not
voting: 3.
Absent or not voting: Carmody, Lloyd, E. Peterson.
The bill passed, as amended.
SB 504, An act concerning the department of wildlife and parks; relating to disposition
of certain moneys from agricultural production; amending K.S.A. 32-806 and repealing the
existing section, was considered on final action.
On roll call, the vote was: Yeas 121; Nays 1; Present but not voting: 0; Absent or not
voting: 3.
Absent or not voting: Carmody, Lloyd, E. Peterson.
The bill passed.
On motion of Rep. Jennison, the House went into Committee of the Whole, with Rep.
Empson in the chair.
COMMITTEE OF THE WHOLE
On motion of Rep. Empson, Committee of the Whole report, as follows, was adopted:
Recommended that SB 382, 211 be passed.
HR 6015 be adopted.
Committee report to HB 2982 be adopted; and the bill be passed as amended.
On motion of Rep. P. Long to amend SB 423, Rep. Wilson requested a ruling on the
amendment being germane to the bill. The Rules Chair ruled the amendment not germane;
and the bill be passed.
Committee report to SB 298 be adopted; and the bill be passed as amended.
REPORTS OF STANDING COMMITTEES
The Committe on Agriculture recommends SB 505 be passed.
The Committee on Agriculture recommends SB 149, as amended by Senate Committee,
be amended on page 3, by striking all in lines 20 through 43;
On page 4, by striking all in lines 1 through 18;
And by renumbering section 7 as section 4; and the bill be passed as amended.
The Committee on Environment recommends HCR 5048 be adopted and, because the
committee is of the opinion that the concurrent resolution is of a noncontroversial nature,
be placed on the consent calendar.
The Committee on Federal and State Affairs recommends SB 428, as amended by
Senate Committee of the Whole, be passed and, because the committee is of the opinion
that the bill is of a noncontroversial nature, be placed on the consent calendar.
The Committee on Federal and State Affairs recommends SB 469 be amended on
page 1, in line 22, by striking all after the period; by striking all in lines 23 through 26; and
the bill be passed as amended.
The Committee on Financial Institutions recommends SB 531 be passed and, because
the committee is of the opinion that the bill is of a noncontroversial nature, be placed on
the consent calendar.
The Committee on Governmental Organization and Elections recommends SB 556,
as amended by Senate on Final Action, be amended on page 2, by striking all in lines 37
through 43;
On page 3, by striking all in lines 1 through 22; by relettering subsection (e) as subsection
(d); and the bill be passed as amended.
The Committee on Health and Human Services recommends SB 425, as amended by
Senate Committee, be passed and, because the committee is of the opinion that the bill is
of a noncontroversial nature, be placed on the consent calendar.
The Committee on Health and Human Services recommends SB 270, as amended by
Senate Committee of the Whole, be amended on page 1, in line 22, by striking all before
``over-the-counter''; in line 23, before the comma where it appears for the first time, by
inserting ``or baby food, infant formula or similar products''; and the bill be passed as
amended.
The Committee on Transportation recommends SB 542, as amended by Senate Com-
mittee of the Whole, be amended on page 3, in line 13, following ``dealer'' by inserting ``,
who has received training from the highway patrol in accordance with rules and regulations
adopted by the superintendent of the highway patrol,'';
On page 10, following line 10, by inserting the following:
``Sec. 4. K.S.A. 79-3401 is hereby amended to read as follows: 79-3401. This act, and
amendments thereto, shall be known and may be cited as the ``motor-fuel tax law,'' and as
so constituted is hereinafter referred to as ``this act.'' The following words, terms and phrases,
when used in this act, shall have the meanings ascribed to them in this section, except in
those instances clearly indicating a different meaning:
(a) ``Aviation fuel'' means motor fuels for use as fuel for aircraft;
(b) ``agricultural ethyl alcohol'' means a motor-vehicle fuel component with a purity of
at least 99%, exclusive of any added denaturants, denatured in conformity with one of the
methods approved by the United States department of the treasury, bureau of alcohol,
tobacco and firearms, and distilled in the United States of America from grain produced in
the United States of America;
(c) ``bulk plant'' means a motor fuels storage facility, other than a terminal, that is
primarily used to redistribute motor fuels;
(d) ``dealer'' means any person engaged in the retail sale of motor-vehicle fuels or,
special fuels or aviation fuels;
(e) ``director'' means the director of taxation, a duly authorized deputy, agent or rep-
resentative;
(f) ``distributor'' means any person, who:
(1) Imports or causes to be imported from any other state or territory of the United
States motor-vehicle fuels or, special fuels or aviation fuels for such person's own use in the
state of Kansas, or for sale and delivery therein, after the same shall have come to rest or
storage therein, whether or not in the original package, receptacle or container; or
(2) imports or causes to be imported, from a foreign country, motor-vehicle fuels or,
special fuels or aviation fuels for such person's own use in the state of Kansas, or for sale
and delivery therein, after the same shall have come to rest or storage, whether or not in
the original package, receptacle or container;
(3) purchases or receives motor-vehicle fuels or, special fuels or aviation fuels in the
original package, receptacle or container in the state of Kansas for such person's own use
therein, or for sale and delivery therein, from any person who has imported the same from
any other state or territory of the United States, or any other nation, in case such motor-
vehicle fuels or, special fuels or aviation fuels have not, prior to such purchase or receipt,
come to rest or storage in the state of Kansas; or
(4) received and, in any manner, uses, sells or delivers motor-vehicle fuels or, special
fuels or aviation fuels in the state of Kansas on which the tax provided for in this act has
not been previously paid;
(g) ``exporter'' means any person who exports or causes to be exported motor vehicle
fuels or, special fuels or aviation fuels from Kansas to any other state or territory of the
United States or to a foreign country, for such person's own use or for sale or delivery
therein, whether or not in the original package, receptacle or container;
(h) ``importer'' means any person who imports or causes to be imported motor-vehicle
fuels or, special fuels or aviation fuels from any other state or territory of the United States
or from a foreign country, for such person's own use in the state of Kansas or for sale or
delivery therein, whether or not in the original package, receptacle or container;
(i) ``liquid fuels'' or ``motor fuels'' means any inflammable liquid by whatever name such
liquid shall be known or sold, which is used, or practically or commercially usable, either
alone or when mixed or combined in an internal-combustion engine for the generation of
power;
(j) ``manufacturer'' or ``refiner'' means any person who or which produces, refines, pre-
pares, blends, distills, manufactures or compounds motor-vehicle fuels or, special fuels or aviation fuels in the state of Kansas for such person's own use therein, or for sale or delivery
therein. The term ``manufacturer'' shall not include any person who or which mechanically
separates liquids from natural gas at production facilities or gathering system pipelines on
the lease. No person who produces, refines, prepares, blends, distills, manufactures, or
compounds motor-vehicle fuels or, special fuels or aviation fuels shall be required to render
a distributor's (manufacturer's) report as to any particular lot or lots of motor-vehicle fuels or, special fuels or aviation fuels until such motor-vehicle fuels or, special fuels or aviation fuels have been loaded at a refinery or other place of production into tank cars, or placed
in any tank at such refinery or other place of production from which any withdrawals are
made direct into tanks, tank wagons or other types of transportation equipment, containers
or facilities;
(k) ``motor vehicle'' means a motor vehicle as defined by K.S.A. 8-126, and amendments
thereto, and which is required to be registered pursuant to K.S.A. 8-126 et seq., and amend-
ments thereto;
(l) ``motor-vehicle fuels'' means gasoline, casinghead gasoline, natural gasoline, drip gas-
oline, aviation gasoline, gasohol, gasoline-oxygenate blend and any other spark-ignition mo-
tor fuel as defined by the 1995 United States department of commerce, national institute
of standards and technology handbook 130 issued December of 1994, and as may subse-
quently be defined in rules and regulations which the director may adopt pursuant to K.S.A.
79-3419, and amendments thereto;
(m) ``oil inspector'' means the director of taxation, a duly authorized deputy, agent or
representative;
(n) ``person'' means every natural person, association, partnership, limited partnership,
limited liability company or corporation. When used in any statute, prescribing and imposing
a fine or imprisonment, or both, the term ``person'' as applied to firms and associations
means the partners or members thereof and, as applied to corporations, the corporation
and the officers thereof;
(o) ``public highways'' means and includes every way or place, of whatever nature, gen-
erally open to the use of the public as a matter of right, for the purposes of vehicular travel
and notwithstanding that the same shall have been temporarily closed for the purpose of
construction, reconstruction or repair;
(p) ``received'' means motor-vehicle fuel or, special fuel or aviation fuel produced, re-
fined, prepared, distilled, manufactured, blended or compounded at any refinery or other
place, in the state of Kansas by any person, or imported into this state from any other state,
territory, or foreign country by pipeline or connecting pipeline at a pipeline terminal or
pipeline tank farm for storage, shall be deemed to be ``received'' by such person thereat
when the same shall have been loaded at such refinery, pipeline terminal, pipeline tank
farm or other place, into tank cars, tank trucks or other container, or placed in any tank
from which any withdrawals are made direct into tank cars, tank trucks or other types of
transportation equipment, containers or facilities;
(q) ``retailer'' means a person that engages in the business of selling or distributing motor
fuels to the end user;
(r) ``school bus'' means every bus, as defined by K.S.A. 8-1406, and amendments thereto,
which is: (1) Privately owned and contracted for, leased or hired by a school district or
nonpublic school for the transportation of pupils, students or school personnel to or from
school or to or from school-related functions or activities; or (2) owned and operated by a
school district or nonpublic school which is registered under the provisions of K.S.A. 8-126
et seq., and amendments thereto, used for the transportation of pupils, students or school
personnel to or from school or to or from school-related functions or activities;
(s) ``special fuels'' means all combustible liquids suitable for the generation of power
for the propulsion of motor vehicles including, but not limited to, diesel fuel, alcohol and
such fuels not defined under the motor-vehicle fuels definition, hereinafter referred to as
motor-vehicle fuel;
(t) ``terminal'' means a fuel storage and distribution facility that is supplied by motor
vehicle, pipeline or marine vessel, and from which motor fuels may be removed at a rack.
``Terminal'' does not include any facility at which motor fuel blend stocks and additives are
used in the manufacture of products other than motor fuels and from which no motor fuels
are removed;
(u) ``terminal operator'' means the person who by ownership or contractual agreement
is charged with the responsibility for, or physical control over, and operation of a terminal;
(v) ``transporter'' means a person who has been issued a liquid-fuels carrier's license
pursuant to K.S.A. 55-506 et seq., and amendments thereto.
Sec. 5. K.S.A. 79-3402 is hereby amended to read as follows: 79-3402. The tax imposed
by this act is levied for the purpose of producing revenue to be used by the state of Kansas
to: (a) Defray in whole, or in part, the cost of constructing, widening, purchasing of right-
of-way, reconstructing, maintaining, surfacing, resurfacing and repairing the public high-
ways, including the payment of bonds issued for highways included in the state system of
this state, and the cost and expenses of the director of taxation and the director's agents and
employees incurred in administration and enforcement of this act and for no other purpose
whatever; and (b) to provide grants for public use general aviation airports under K.S.A. 75-5061, and amendments thereto.
Sec. 6. K.S.A. 79-3403 is hereby amended to read as follows: 79-3403. It shall be un-
lawful for any distributor to use, sell or deliver any motor-vehicle fuels or, special fuels or aviation fuels within this state unless such distributor at the time of such use, sale, or delivery,
is the holder of a valid, unrevoked motor-vehicle-fuels distributor's license or, special fuels
distributor's license or aviation fuels distributor's license issued to such distributor in ac-
cordance with the provisions of this act for each particular place of business at which such
distributor shall use, sell or deliver motor-vehicle fuels or, special fuels or aviation fuels.
Every person desiring to operate as a distributor shall have a physical location in this state
for doing business and shall file an application for a motor-vehicle-fuels or, special fuels or aviation fuels license or licenses with the director. The application for the motor-vehicle-
fuels or, special fuels or aviation fuels distributor's license shall be made upon a form
prescribed, prepared and furnished by the director, and shall set forth the name under
which the applicant transacts or intends to transact business, the exact location of each place
of business within the state where the applicant transacts or intends to transact the business
of using, selling or delivering motor-vehicle fuels or, special fuels or aviation fuels, and such
other information as the director may require. If the applicant is other than a natural person,
the application shall set forth the name and address of each partner or person constituting
the association, and if a corporation the names and addresses of the principal officers, and
any other information prescribed by the director for purposes of identification.
The application shall be signed and verified by oath or affirmation by the owner, if a
natural person. For any other business form the application shall be signed and verified by
oath or affirmation by a member or partner, and in case of a corporation, by an executive
officer or some person specifically authorized by the corporation to sign the application, to
which shall be attached written evidence of such person's authority. The director has the
authority to deny a distributor's license to any applicant. Upon approval of the application
and the bond required, the director shall grant and issue to such distributor a motor-vehicle-
fuels distributor's or, special fuels distributor's or aviation fuels distributor's license for each
place of business, within the state as set forth in such person's application. Motor-vehicle-
fuels distributor's licenses or, special fuels distributor's licenses or aviation fuels distributor's licenses shall not be assignable and shall be valid only for the distributor in whose name
issued and for the transaction of business at the place specifically designated therein, and
shall at all times be conspicuously displayed at the place for which issued. All licenses issued
by the director shall be in force, so long as the holder has in force a bond, as required by
this act, deposited with the director, or until such license is surrendered or revoked for
cause by the director. No motor-vehicle-fuels distributor's license or, special fuels distrib-
utor's license or aviation fuels distributor's license shall be granted and issued until the
person applying has filed with the director a bond, payable to the state of Kansas, in such
amount as shall be fixed by the director, but in no event less than $1,000, with a corporate
surety authorized to do business in the state of Kansas and approved by the director, except
that should a distributor be unable to secure a corporate surety bond, the director shall
issue a license to such distributor upon the distributor furnishing a personal bond meeting
the approval of the director, such bond to be conditioned that the distributor named will
faithfully comply with all the provisions of this act during the period of the license or licenses
issued to such distributor under such application.
It shall be unlawful for any manufacturer to use, sell or deliver any motor-vehicle fuels or, special fuels or aviation fuels within this state unless such manufacturer at the time of
such use, sale, or delivery is the holder of a valid, unsuspended and unrevoked motor-vehicle
fuel manufacturer's license or, special fuel manufacturer's license or aviation fuel manufac- turer's license issued to such manufacturer in accordance with the provisions of this act for
each particular place of business at which such manufacturer shall use, sell or deliver motor-
vehicle fuels or, special fuels or aviation fuels. No special fuel manufacturer's license will
be required for any manufacturer who is blending products for winterization purposes if
the manufacturer at the time of the blending is the holder of a valid, unsuspended and
unrevoked motor-vehicle fuels or, special fuels or aviation fuels distributor's license. Every
person desiring to operate as a manufacturer shall file an application for a motor-vehicle
fuel manufacturer's license or licenses or, special fuel manufacturer's license or licenses or aviation fuel manufacturer's license or licenses with the director. The application for the
motor-vehicle fuel manufacturer's license or, special fuel manufacturer's license or aviation fuel manufacturer's license shall be made on a form prescribed, prepared, and furnished by
the director, and shall set forth the name under which the applicant transacts or intends to
transact business, the exact location of each place of business within the state where the
applicant transacts or intends to transact the business of using, selling or delivering mo-
tor-vehicle fuels or, special fuels or aviation fuels, and such other information as the director
may require. If the applicant is other than a natural person, the application shall set forth
the name and address of each partner or person constituting the association, and if a cor-
poration the names and addresses of the principal officers, and any other information pre-
scribed by the director for purposes of identification.
The application shall be signed and verified by oath or affirmation by the owner, if a
natural person. For any other business form, the application shall be signed and verified by
oath or affirmation by a member or a partner, and in case of a corporation, by an executive
officer or some person specifically authorized by the corporation to sign the application, to
which shall be attached written evidence of such person's authority. The director has the
authority to deny a manufacturer's license to any applicant. Upon approval of the application
and the bond required, the director shall grant and issue to manufacturer a motor-vehicle
fuels or, special fuels manufacturer's or aviation fuels manufacturer's license for each place
of business, within the state as set forth in such person's application. Motor-vehicle fuels
manufacturer's licenses or, special fuels manufacturer's licenses or aviation fuels manufac- turer's licenses shall not be assignable and shall be valid only for the manufacturer in whose
name and issued for the transaction of business at the place specifically designated therein,
and shall at all times be conspicuously displayed at the place for which issued. All licenses
issued by the director shall be in force, so long as the holder has in force a bond, as required
by this act, deposited with the director, or until such license is surrendered or revoked by
the director.
Any person not licensed as a motor-vehicle fuels or, special fuels or aviation fuels distrib-
utor under this act, desiring to import motor-vehicle fuels or, special fuels or aviation fuels
from any other state or territory of the United States, or from a foreign country for such
person's own use in the state of Kansas, or for sale or delivery therein, or desiring to export
motor-vehicle fuels or, special fuels or aviation fuels from Kansas to any other state or
territory of the United States, or to a foreign country for such person's own use or for sale
or delivery therein, shall file application for a motor-vehicle fuel or, special fuel or aviation fuel importer's or exporter's license with the director. The application shall be made upon
a form prescribed, prepared, and furnished by the director, and shall set forth the name
under which the applicant transacts, or intends to transact, business of using, selling or
delivering motor-vehicle fuels or, special fuels or aviation fuels and such other information
as the director may require. If the applicant is other than a natural person, the application
shall set forth the name and address of each partner or person constituting the association,
and if a corporation the names and address of the principal officers, and any other infor-
mation prescribed by the director for purposes of identification.
The application shall be signed and verified by oath or affirmation by the owner, if a
natural person. For any other business form the application shall be signed and verified by
oath or affirmation by a member or partner, and in case of a corporation, by an executive
officer or some person specifically authorized by the corporation to sign the application, to
which shall be attached written evidence of such person's authority. The director has the
authority to deny an importer's or exporter's license to any applicant. Upon approval of the
application and the bond required, the director shall grant and issue to an importer or
exporter a motor-vehicle fuels or, special fuels or aviation fuels importer's or exporter's
license. The written consent of the applicant, irrevocable, that actions may be commenced
against it in the proper court of any county in this state in which a cause of action may arise
or in which the plaintiff may reside, by the service of process on the secretary of state, and
stipulating and agreeing that such service shall be taken and held, in all courts, to be as valid
and binding as if due service had been made upon the applicant personally, or upon the
president and secretary, if a corporation. The secretary of state shall notify the applicant of
any action started against such applicant by mailing a copy of the summons to the address
set out in the application by registered mail. Motor-vehicle fuels importer's or exporter's
licenses or, special fuels importer's or exporter's licenses or aviation fuels importer's or exporter's licenses shall not be assignable and shall be valid only for the importer or exporter
in whose name such license is issued. All licenses issued by the director shall be in force,
so long as the holder has in force a bond, as required by this act, deposited with the director
or until such license is surrendered by the director.
No motor-vehicle fuel or, special fuel or aviation fuel manufacturer's license shall be
granted and issued until the person applying has filed with the director a bond payable to
the state of Kansas, in such amount as shall be fixed by the director, but in no event less
than $5,000, with a corporate surety authorized to do business in the state of Kansas and
approved by the director.
No motor-vehicle fuel or, special fuel or aviation fuel importer's or exporter's license shall
be granted and issued until the person applying has filed with the director a bond, payable
to the state of Kansas, in such amount as shall be fixed by the director, but in no event less
than $5,000, with a corporate surety authorized to do business in the state of Kansas and
approved by the director.
It shall be unlawful for any retailer to sell or deliver any motor-vehicle fuels or, special
fuels or aviation fuels within this state unless such retailer at the time of such sale or delivery,
is the holder of a valid, unrevoked retailer's license issued to such retailer in accordance
with the provisions of this act for each particular place of business at which such retailer
shall sell or deliver motor-vehicle fuels or, special fuels or aviation fuels. Every person
desiring to operate as a retailer shall have a physical location in this state for doing business
and shall file an application for a retailer's license with the director. The application for the
retailer's license shall be made upon a form prescribed, prepared and furnished by the
director, and shall set forth the name under which the applicant transacts or intends to
transact business, the exact location of the place of business within the state where the
applicant transacts or intends to transact the business of selling or delivering motor-vehicle
fuels or, special fuels or aviation fuels, and such other information as the director may
require. If the applicant is other than a natural person, the application shall set forth the
name and address of each partner or person constituting the association, and if a corporation
the names and addresses of the principal officers, and any other information prescribed by
the director for purposes of identification.
The application shall be signed and verified by oath or affirmation by the owner, if a
natural person. For any other business form the application shall be signed and verified by
oath or affirmation by a member or partner, and in case of a corporation, by an executive
officer or some person specifically authorized by the corporation to sign the application, to
which shall be attached written evidence of such person's authority. The director has the
authority to deny a retailer's license to any applicant. Upon approval of the application, the
director shall grant and issue to such retailer a motor-vehicle fuels or, special fuels or aviation fuels retailers' license. Retailers licenses shall not be assignable and shall be valid only for
the retailer in whose name and issued for the transaction of business at the place specifically
designated therein, and shall at all times be conspicuously displayed at the place for which
issued. All licenses issued by the director shall be in force until such license is surrendered
or revoked by the director.
Each licensee licensed under this act shall furnish annually to the director any changes
occurring in the members, corporate or company officers, directors and stock ownership of
those owning more than 5% of total outstanding shares of the licensee.
Sec. 7. K.S.A. 79-3405 is hereby amended to read as follows: 79-3405. The director
may at any time require any distributor, manufacturer, importer or exporter to furnish such
additional bond with authorized corporate surety, as shall be necessary to secure at all times
the payment by such person to the state of all taxes, penalties and interest due under the
provisions of this act. If any distributor, manufacturer, importer or exporter shall fail to file
such additional bond within 10 days after receipt of written notice mailed or otherwise
delivered to such person by the director, the director may suspend or revoke the license or
licenses issued to such person, and collect all taxes, penalties and interest accrued against
such distributor, manufacturer, importer or exporter. For the purpose of determining
whether an existing bond or bonds are sufficient, the director may at any time, by mailed
written notice, or otherwise delivered, require any distributor, manufacturer, importer or
exporter to furnish a financial statement in such form as the director may prescribe. Upon
failure of any distributor, manufacturer, importer or exporter to furnish a sworn financial
statement within 20 days after receipt of such written notice, the director may suspend or
revoke any or all licenses issued to such person, and shall collect all taxes, penalties, and
interest accrued against such distributor, manufacturer, importer or exporter.
Any surety on a bond furnished by a distributor, manufacturer, importer or exporter as
provided shall be released and discharged from any and all liability to the state accruing on
such bond after the expiration of 60 days from the date upon which such surety shall have
lodged with the director a written request to be released and discharged, but this provision
shall not operate to relieve, release, or discharge the surety from any liability already accrued
or which shall accrue before the expiration of the sixty-day period. The director shall
promptly, upon receiving any such request, notify the distributor, manufacturer, importer
or exporter who furnished the bond and unless the distributor, manufacturer, importer or
exporter shall, on or before the expiration of such sixty-day period, file with the director a
new bond fully complying with the provisions of this act, the director shall revoke and cancel
such distributor's, manufacturer's, importer's or exporter's license or licenses and notify the
distributor, manufacturer, importer or exporter by registered mail or otherwise.
Licenses issued under the provisions of this act may be renewed annually before the first
day of November upon an application to the director, but no licenses shall be renewed until
the applicant shall file with the director a bond in such amounts as shall be fixed by the
director and fully complying with the provisions of this act. Nothing contained in this act
shall require the filing of an application or bond, or the possession or display of a motor-
vehicle-fuels or, special fuels license or aviation fuels license, for the use, sale and delivery
of motor-vehicle fuels or, special fuels or aviation fuels exclusively in interstate or foreign
commerce not within the taxing power of the state, or for use by, or sale or delivery to, the
United States government.
Sec. 8. K.S.A. 79-3406 is hereby amended to read as follows: 79-3406. Any distributor,
manufacturer or retailer who is the holder of any valid and unrevoked license or licenses
and who shall subsequent to the issuance procure or propose to procure or operate addi-
tional places or stations for using, selling or delivering motor-vehicle fuels or, special fuels or aviation fuels, upon making application to the director, showing as to each proposed new
place or station the same information as required for an original application, may secure
from the director a license or licenses for each of such new or proposed places or stations,
which new license or licenses shall be in the same form and contain the same statements
as the original license or licenses.
Sec. 9. K.S.A. 79-3407 is hereby amended to read as follows: 79-3407. Whenever any
distributor, manufacturer, importer, exporter or retailer is 10 days delinquent in the making
of any such report, or the payment of any such tax, penalty or interest, or shall make any
false report or statement or application purporting to be under the provisions of this act, or
shall make any false statement in any application, report or statement required by or pur-
porting to be under the provisions of this act, or purporting to be under the rules and
regulations promulgated by the director under such provisions, or shall have willfully or
persistently violated any of the provisions of this act or of any rules and regulations made
thereunder, the director upon conducting a hearing as provided in this section and upon
finding to the director's satisfaction upon such hearing, that such distributor, manufacturer,
importer, exporter or retailer has been delinquent, or has violated provisions of this act, may
revoke any or all licenses issued to such distributor, manufacturer, importer, exporter or
retailer.
Hearings under this section shall be conducted in accordance with the Kansas adminis-
trative procedure act. In the event that the director revokes any license or licenses the
distributor, manufacturer, importer, exporter or retailer to whom such license or licenses
were issued shall immediately, upon service of the director's order, surrender the same to
the director and cease using, selling, delivering or manufacturing any motor-vehicle fuels or, special fuels or aviation fuels at or from any places of business or stations for which the
license or licenses have been revoked.
Sec. 10. K.S.A. 79-3408 is hereby amended to read as follows: 79-3408. (a) A tax per
gallon or fraction thereof, at the rate computed as prescribed in K.S.A. 79-34,141, and
amendments thereto, is hereby imposed on the use, sale or delivery of all motor vehicle
fuels or, special fuels or aviation fuels which are used, sold or delivered in this state for any
purpose whatsoever.
(b) Every retail pump for motor-vehicle fuels shall be conspicuously labeled to show
the content and percentage of any ethyl alcohol or other alcohol combined or alone in excess
of 1% by volume.
(c) Such taxes shall be paid but once. Such tax shall be computed on all motor-vehicle
fuels or, special fuels or aviation fuels received by each distributor, manufacturer, importer
or retailer in this state and paid in the manner provided for herein, except that an allowance
of 2.5% shall be made and deducted by the distributor to cover all ordinary losses in handling
such motor-vehicle fuels or, special fuels or aviation fuels. No such allowance shall be made
on any motor-vehicle fuel or, special fuel or aviation fuel exported from the state or sold to
the United States of America or any of its agencies or instrumentalities as are now or
hereinafter exempt by law from liability to state taxation. No such allowance shall be made
for any motor-vehicle fuel or special fuel or aviation fuel sold or disposed of to a consumer
in tank car, transport or pipeline lots.
(d) No tax is hereby imposed upon or with respect to the following transactions:
(1) The sale or delivery of motor-vehicle fuel or, special fuel or aviation fuel for export
from the state of Kansas to any other state or territory or to any foreign country.
(2) The sale or delivery of motor-vehicle fuel or, special fuel or aviation fuel to the
United States of America and such of its agencies as are now or hereafter exempt by law
from liability to state taxation except that this exemption shall not be allowed if the sale or delivery of motor-vehicle fuel or special fuel is to a retail dealer located on an Indian res- ervation in the state and such motor-vehicle fuel, special fuel or aviation fuel is sold or delivered to a nonmember of such reservation.
(3) The sale or delivery of motor-vehicle fuel or, special fuel or aviation fuel to a con-
tractor for use in performing work for the United States or those agencies of the United
States above mentioned, provided such contractor has in effect with the United States or
any such agency a cost-plus-a-fixed-fee contract covering the work.
(4) The sale or delivery of motor-vehicle fuel or special fuel which is aviation fuel to a public utility for consumption or movement directly and immediately in interstate commerce.
(5) The first sale or delivery of motor-vehicle fuel or, special fuel or aviation fuel from
a refinery, pipeline terminal, pipeline tank farm or other place to a duly licensed distributor
who in turn resells to another duly licensed distributor.
(6) The sale or delivery of special fuel which is indelibly dyed in accordance with reg-
ulations prescribed pursuant to 26 U.S.C. 4082 and such special fuel is only used for non-
highway purposes.
(e) Each distributor, manufacturer, importer, exporter or retailer shall make full reports
and furnish such further information as the director may require with reference to all trans-
actions upon which no tax is to be paid.
Sec. 11. K.S.A. 79-3408c is hereby amended to read as follows: 79-3408c. (a) A tax is
hereby imposed on the use, sale or delivery of all motor-vehicle fuel or, special fuel or aviation fuel owned at 12:01 a.m. July 1, 1989 1998, and on July 1 of each year thereafter,
by any licensed distributor or licensed retailer at a rate per gallon, or fraction thereof, equal
to the amount, if any, by which the tax per gallon, or fraction thereof, in effect on such date
as prescribed by K.S.A. 79-3408, and amendments thereto, exceeds the rate of tax upon
such motor-vehicle fuel or, special fuel or aviation fuel which was in effect on the preceding
day. Such tax shall be paid by the licensed distributor or licensed retailer owning such motor-
vehicle fuel or, special fuel or aviation fuel at such time and date. On or before the 25th
day of the month in which a tax is imposed under this section, every such distributor and
retail dealer shall make a report to the director on a form prescribed and furnished by the
director showing the total number of gallons, or fraction thereof, of such motor-vehicle fuel or, special fuel or aviation fuel owned at the time the tax is imposed under this section and
such report shall be accompanied by a remittance of the tax due.
Any licensed distributor or licensed retailer who shall fail to make such report or pay such
tax, within the time prescribed, shall be subject to the same penalties and interest charges
prescribed by the motor-vehicle fuel or, special fuel or aviation fuel tax law for failure of a
licensed distributor to make monthly reports and payments of motor-vehicle fuel or, special
fuel or aviation fuel tax. The provisions of the motor-fuel tax law relating to remedies for
the collection of delinquent motor-fuel taxes from distributors shall apply to the collection
of taxes imposed by this section which have become delinquent from licensed distributors
and licensed retailers. All taxes, penalties and interest collected by the director under the
tax imposed by this section shall be paid by the director into the state treasury and the state
treasurer shall credit the same to the funds and in the amounts specified in K.S.A. 79-
34,142, and amendments thereto.
(b) Whenever the rate of tax upon motor-vehicle fuels or, special fuels or aviation fuels
fixed pursuant to K.S.A. 79-3408, and amendments thereto, which become effective on July
1, 1989 1998, or on July 1 in any year thereafter is less than the rate of tax upon such fuel
in effect on the preceding day, the licensed distributor or licensed retailer owning such fuel
at 12:01 a.m. on the date such reduction in taxes becomes effective shall be entitled to a
refund of taxes paid upon such fuel in an amount equal to the amount by which taxes were
reduced from the amount of motor-vehicle fuels or, special fuels or aviation fuels taxes per
gallon, or fraction thereof, actually paid upon each gallon, or fraction thereof, of motor-
vehicle fuels or, special fuels or aviation fuels multiplied by the number of gallons of motor-
vehicle fuels or, special fuels or aviation fuels owned by the distributor or dealer on such
date. On or before the 25th day of the month in which such tax is reduced, every such
distributor and retailer shall make a report to the director on a form prescribed and furnished
by the director showing the total number of gallons of such motor-vehicle fuel or, special
fuel or aviation fuel owned by such distributor or retailer at 12:01 a.m. on the date upon
which such tax was reduced. It shall be the duty of the director of taxation to examine all
such claims and determine the amount to which each claimant is entitled. In the event any
distributor or retailer entitled to such refund shall owe the state any motor-vehicle fuel or,
special fuel or aviation fuel tax, penalties, or interest, the refund authorized by this section
shall upon being determined by the director be credited upon the amount of such taxes,
penalties and interest. Whenever the director shall determine that any distributor or retailer
shall be entitled to a refund under any of the provisions of this section, and such refund
cannot be effected by giving credit therefor, as hereinbefore provided, or against the future
motor-vehicle fuel or, special fuel or aviation fuel tax liability of such taxpayer the director
shall certify the amount of the refund to the state director of accounts and reports, who
shall draw a warrant for the amount so certified on the state treasurer in favor of the
distributor or retailer entitled to such refund, and mail, or otherwise deliver, the same to
the distributor entitled thereto. Such warrant shall be paid by the state treasurer to such
distributor or retailer from the motor-vehicle fuel or special fuel motor fuels tax refund fund.
Sec. 12. K.S.A. 79-3409 is hereby amended to read as follows: 79-3409. Every distrib-
utor paying such tax or being liable for the payment shall be entitled to charge and collect
such tax on motor-vehicle fuels or, special fuels or aviation fuels sold or delivered by such
distributor, as a part of the selling price. When the price of motor-vehicle fuels or, special
fuels or aviation fuels posted on a price sign does not include the state and federal tax the
total of the taxes must be shown in numbers the same size as the price of the motor fuel.
Any deviation from the maximum price charged for a given grade of motor-vehicle fuels or,
special fuels or aviation fuels must be stated in letters at least six inches high and legible.
Fractions of cents must be posted in numbers at least 1/5 the height of the whole number.
Sec. 13. K.S.A. 79-3410 is hereby amended to read as follows: 79-3410. (a) Except as
hereinafter provided, every distributor, manufacturer, importer, exporter or retailer of mo-
tor-vehicle fuels or, special fuels or aviation fuels, on or before the 25th day of each month,
shall render to the director at the director's office in Topeka, Kansas, upon a form pre-
scribed, prepared and furnished by the director a report certified to be true and correct
showing the number of gallons of motor-vehicle fuels or, special fuels or aviation fuels
received by such distributor, manufacturer, importer, exporter or retailer during the pre-
ceding calendar month, and such further information as the director shall require. Every
distributor and importer shall be exempt from reporting to the director exempt sales to the
end user of special fuel which is indelibly dyed in accordance with regulations prescribed
pursuant to 26 U.S.C. 4082. Every distributor, manufacturer or importer within the time
herein fixed for the rendering of such reports, shall compute and shall pay to the director
at the director's office the amount of taxes due to the state on all motor-vehicle fuels or,
special fuels or aviation fuels received by such distributor, manufacturer or importer during
the preceding calendar month.
(b) The director may waive the requirement for monthly reports from licensed manu-
facturers, who are also licensed distributors, when all taxes accrued under either or both
licenses or which might accrue are paid under the distributor license. All taxes imposed
under the provisions of this act not paid on or before the 25th day of the month succeeding
the calendar month in which the motor-vehicle fuels or special fuels or aviation fuels were
received by the distributor, manufacturer or importer shall be deemed delinquent and shall
bear interest at the rate per month, or fraction thereof, prescribed by subsection (a) of
K.S.A. 79-2968, and amendments thereto, from such due date until paid, and in addition
thereto there is hereby imposed upon all amounts of such taxes remaining due and unpaid
after such due date a penalty in the amount of 5%, and the penalty shall be by the director
added to and collected as a part of the taxes. If the distributor, manufacturer or importer
furnishes evidence to the director that the delinquency was due to causes beyond such
person's reasonable control, and if in the opinion of the director the delinquency was not
the result of willful negligence of the distributor, manufacturer or importer the penalty or
interest or both may be waived or reduced by the director.
If any person shall file a false or fraudulent return or fail to file a return with intent to
evade the tax imposed by this act, there shall be added to the amount of deficiency deter-
mined by the director a penalty equal to 100% of the deficiency together with the interest
at the rate per month or fraction thereof, prescribed by subsection (a) of K.S.A. 79-2968,
and amendments thereto, on such deficiency from the date such tax was due to the date of
payment, in addition to all other penalties prescribed by law. Every manufacturer, refiner
or terminal operator of motor-vehicle fuels or, special fuels or aviation fuels shall daily send
reports to the director of all sales of liquid fuels. The reports are to be made on forms
prescribed, prepared and furnished by the director or on forms furnished by the manufac-
turer and approved by the director.
(c) Whenever the secretary or the secretary's designee determines that the failure of
the taxpayer to comply with the provisions of subsection (b) was due to reasonable causes,
the secretary or the secretary's designee may waive or reduce any of the penalties and may
reduce the interest rate to the underpayment rate prescribed and determined for the ap-
plicable period under section 6621 of the federal internal revenue code as in effect on
January 1, 1994, upon making a record of the reasons therefor.
Sec. 14. K.S.A. 79-3415 is hereby amended to read as follows: 79-3415. Each distrib-
utor, manufacturer, importer, exporter, retailer or user shall maintain and keep, for a period
of three years, a full record or records of all motor-vehicle fuels or, special fuels or aviation fuels received, used or sold and delivered within this state by such distributor, manufacturer,
importer, exporter, retailer or user, together with invoices and bills of lading thereof, and
such other pertinent papers as may be required by the director.
Sec. 15. K.S.A. 79-3416 is hereby amended to read as follows: 79-3416. Every railroad,
street railroad, interurban railroad or suburban railroad, every pipeline company, every
common carrier, and every carrier for hire, who shall transport any liquid fuels, motor-
vehicle fuels or, special fuels or aviation fuels, from any point outside of this state into this
state, or between any two points in this state, or from any point in this state to any point
outside this state, and every private carrier or other person who shall transport any liquid
fuels, motor-vehicle fuels or, special fuels or aviation fuels from any other state into this
state, or from this state into another state, or shall transport any liquid fuels, motor-vehicle
fuels or, special fuels or aviation fuels exceeding 500 gallons in amount, for any distance
exceeding 25 miles within this state, shall render a written report, under oath, to the director,
on forms prescribed and furnished by the director, of all such transportation of liquid fuels,
motor-vehicle fuels or, special fuels or aviation fuels so made to or from points within this
state. Every such report shall cover a period of one calendar month and shall be rendered
to the director on or before the 15th day of the month succeeding the month covered by
such report, and shall show the true name and address of the consignor and the consignee,
and if delivery has been to some person other than the original consignee, the name and
address of the person to whom delivery was actually made, the date and the point of delivery,
and the name and the number of gallons of the liquid fuels, the motor-vehicle fuels or, the
special fuels or aviation fuels delivered. If such transportation was by tank car, such report
shall also show the number and initials of each tank car, if such transportation was by motor
truck such report shall show the motor and license number of each truck, and if such delivery
was made by any other means the report shall show the manner in which such transportation
and delivery was made; such records and reports are required pursuant to the police and
taxing powers of this state for the purpose of promoting the public health and safety and of
aiding in the administration of the tax on motor-vehicle fuels or special fuels.
Every carrier or other person transporting motor-vehicle fuel or, special fuel or aviation fuel by tank car, tank truck or trailer from a refinery, place of manufacture or production,
or pipeline terminal, or importing motor-vehicle fuel or, special fuel or aviation fuel into
this state by tank car, tank truck or trailer for use, sale, or delivery in the state of Kansas
shall carry a manifest on forms prescribed, prepared and furnished by the director or on
forms furnished by the manufacturer, refiner or terminal operator and approved by the
director showing the date of the use, sale, or delivery, the purchaser and the purchaser's
address, the point of delivery, the product type or types and the quantity sold corrected to
60 degrees Fahrenheit, the means of delivering, including the license number, if any, liquid-
fuels carrier's license number, and other number and description of such tank car, tank
truck or trailer. Any manifest, bill of lading, shipping paper or invoice for special fuel which
is indelibly dyed in accordance with regulations prescribed pursuant to 26 U.S.C. 4082 shall
include the statement ``DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY
FOR TAXABLE USE.'' Every person receiving motor-vehicle fuel or, special fuel or avia- tion fuel or any part of the same shall receipt at the place provided on such manifest for the
quantity received by such person. The director may prescribe the number of copies of such
manifest and the manner and time of delivering the same to the director, ports of entry, or
other disposition of copy by the carrier, consignor, consignee, distributor, or other person
in any manner connected with or dealing with such shipment.
For the period July 1, 1995 through June 30, 1996, the point of delivery referred to in this section shall include at a minimum the city and state of actual delivery. On and after July 1, 1996, The point of delivery referred to in this section shall include at a minimum
the address, city and state of actual delivery. The facility number issued by the Kansas
department of health and environment, authorized under K.S.A. 65-34,100 et seq., and
amendments thereto, may be substituted in lieu of the point of delivery.
Sec. 16. K.S.A. 79-3417 is hereby amended to read as follows: 79-3417. Every distrib-
utor shall be entitled to a refund from the state of the amount of motor-vehicle fuels or,
special fuels or aviation fuels tax paid on any motor-vehicle fuels or, special fuels or aviation fuels of 100 gallons or more in quantity, which are lost or destroyed at any one time while
such distributor is the owner thereof, through theft, leakage, fire, explosion, lightning, flood,
storm or other cause beyond the control of the distributor. Such distributor shall notify the
director in writing of such loss or destruction, the specific cause thereof, and the amount
of motor-vehicle fuel or, special fuel or aviation fuel so lost or destroyed, within 60 days
from the date of such loss or destruction. Within 30 days after notifying the director of such
loss or destruction such distributor shall file with the director an affidavit on oath, stating
the full circumstances and amount of the loss or destruction and other information requested
by the director.
The director shall examine all such claims and determine the amount to which the claim-
ant is entitled. If any distributor entitled to a refund owes the state any motor-vehicle fuel or, special fuel or aviation fuel tax, penalties, or interest, the refund authorized by this section
shall be credited upon such taxes, penalties and interest. When the director determines that
any distributor is entitled to a refund under this section, and such refund cannot be effected
by giving credit therefor, the director shall sign a voucher for the refund. Such amount shall
be paid to the distributor from the revenue administration fee fund.
Sec. 17. K.S.A. 79-3419 is hereby amended to read as follows: 79-3419. The director
of taxation shall enforce the provisions of this act. The secretary of revenue shall adopt rules
and regulations for the administration of this act. In the performance of the director's duties,
the director of taxation may call upon the law enforcement officers of this state to perform
their several duties within their respective jurisdiction, and it shall be the duty of each such
law enforcement officer to render aid in the enforcement of the provisions of this act.
The county attorneys of the several counties of this state shall prosecute all violations of
the provisions of this act, and all civil proceedings arising or pending in their respective
counties for recovery of taxes, penalties or interest, arising under the provisions of this act.
The director of taxation may request of the attorney general the aid and assistance of the
Kansas bureau of investigation for investigation of special cases. The director of taxation,
the director of vehicles and the attorney general shall communicate to each other all infor-
mation received concerning violations of the provisions of the motor-fuel tax law and also
all information concerning suspected violations which in the opinion of any one of them
requires investigation.
The director of taxation shall designate auditors, appointed in writing by the director, to
engage in the enforcement of the provisions hereof. Such auditors shall check distributors,
retailers, refund permit holders or any person who uses, stores, transports, sells or delivers
liquid fuels, motor-vehicle fuels or, special fuels or aviation fuels to insure strict compliance
with the provisions of the motor-fuel tax law. The director or such auditor shall have au-
thority to administer oaths, issue subpoenas, compel the attendance of witnesses and the
production of books, papers, accounts, documents and testimony.
In case of disobedience on the part of any person to comply with any subpoena issued
hereunder, or the refusal of any witness to testify to any matter regarding which such person
may be lawfully interrogated, it shall be the duty of the district court of the proper county,
or the judge thereof on application of such director or auditor to compel obedience by
proceedings for contempt, as in the case of disobedience of the requirements of a subpoena
issued from such court or a refusal to testify therein.
Sec. 18. K.S.A. 79-3420 is hereby amended to read as follows: 79-3420. The director,
or any deputy or agent appointed in writing by the director, is hereby authorized to examine
the books, papers, records, storage tanks, tank wagons, trucks and any other equipment of
any distributor, dealer, transporter, manufacturer, importer, exporter, retailer, user or any
other person, pertaining to the use, storage, transportation or sale and delivery of liquid
fuels, motor-vehicle fuels or, special fuels or aviation fuels, to verify the accuracy of any
report, statement or payment made under the provisions of this act, or to ascertain whether
or not all reports and tax payments required by this act have been made. Any information
gained by the director, the director's deputies or agents, as the result of the reports, inves-
tigations and verifications herein required to be made, shall be confidential, and shall not
be divulged by any person except as herein provided. Every distributor, dealer, transporter,
manufacturer, importer, exporter, retailer or user and every person handling or possessing
any liquid fuels, motor-vehicle fuels or, special fuels or aviation fuels shall give the director,
or the director's deputy or agent appointed in writing, full and free access during reasonable
business hours to all the papers, records and property mentioned, with full opportunity to
examine the same. The director, or any deputy or agent appointed in writing by the director,
shall examine returns and shall determine the correct amount of the tax. If the tax found
due shall be greater than the amount paid, or if a claim for a refund is denied, notice shall
be mailed to the taxpayer. Within 60 days after the mailing of such notice, the taxpayer may
request an informal conference with the secretary of revenue or the secretary's designee
relating to the tax liability by filing a written request with the secretary of revenue or the
secretary's designee. Based on the evidence presented at such informal conference, the
secretary of revenue or the secretary's designee shall make a final determination within the
period prescribed by K.S.A. 79-3226, and amendments thereto, and shall notify the taxpayer
of such decision and, if additional amounts are found to be due, such decision shall be
accompanied by a notice and demand for payment. Notice under this section shall be sent
by first-class mail. The tax shall be paid within 20 days thereafter, together with interest at
the rate per month prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto,
on the additional tax from the date the tax was due unless an appeal is taken in the manner
provided by law, but no additional tax shall be assessed for less than $5. Interest at such
rate shall continue to accrue on any additional tax liability during the course of any appeal.
Whenever the director of taxation has reason to believe that a person liable for tax under
any provisions of the motor-fuel tax law is about to depart from the state or to remove such
person's property therefrom, or to conceal oneself or such person's property therein, or to
do any other act tending to prejudice, jeopardize or render wholly or partly ineffectual the
collection of such motor-fuel tax unless proceedings be brought without delay, the director
shall immediately make an assessment for all motor-fuel tax due from such taxpayer, noting
such finding on the assessment. The assessment shall be made on the basis of emergency
proceedings in accordance with the provisions of K.S.A. 77-536, and amendments thereto.
Thereupon, a warrant shall be issued for the collection of the tax as provided in K.S.A.
79-3412, and amendments thereto, except that there shall be no 10-day waiting period
before assessment is issued. The taxpayer, within 15 days from the date of filing of such
warrant, may request an informal conference with the secretary of revenue or the secretary's
designee on the correctness of the assessment. The director may publish the gallons received
by each licensed motor-vehicle fuel or, special fuel or aviation fuel distributor and the
deductions claimed by such distributor and such publication shall be an exception to the
confidentiality provisions of K.S.A. 75-5133, and amendments thereto. The director may
also make available or furnish information to the taxing officials of any other state or of the
federal government, or the director of property valuation, in the manner as provided in
K.S.A. 74-2424, and amendments thereto.
Sec. 19. K.S.A. 79-3421 is hereby amended to read as follows: 79-3421. The director
is hereby authorized to pay out of any available funds in the revenue administration fee
fund, hereinafter provided, to any person, other than a public officer or employee, who shall
first furnish the director information of violation by any person of any of the provisions of
this act, involving unlawful evasion of any motor-vehicle-fuels or, special fuels or aviation fuels tax, such sum as the director may deem proper, not exceeding 10% of the amount of
tax so evaded or sought to be evaded; but such amount shall only be paid upon the sworn
voucher of the claimant therefor and after collection of delinquent tax shall have been
effected, or the person complained against shall have been convicted of violation of some
provision of this act.
Sec. 20. K.S.A. 79-3424 is hereby amended to read as follows: 79-3424. The business
of using, manufacturing or selling of motor-vehicle fuels or, special fuels or aviation fuels
shall not be subject to any excise, license, privilege or occupation tax other than the one
herein imposed, whether such tax be imposed by the state of Kansas or by any municipal
corporation or other political subdivision of this state; and no municipal corporation, or
other political subdivision of this state, shall levy or collect any tax upon, or measured by,
the sale, receipt, distribution or use of motor-vehicle fuel or, special fuel or aviation fuel,
or any excise, license, privilege, or occupational tax upon the business of manufacturing,
using, selling or delivering motor-vehicle fuels or, special fuels or aviation fuels.
Sec. 21. K.S.A. 79-3425 is hereby amended to read as follows: 79-3425. (a) All of the
amounts collected under the motor-fuel tax law and amendments thereto, except amounts
collected pursuant to K.S.A. 79-3408c, and amendments thereto, shall be remitted by the
director to the state treasurer daily, and the state treasurer shall deposit all such amounts
in the state treasury. The state treasurer shall credit such amount thereof as the director
shall order in the motor-vehicle fuel motor fuels tax refund fund to be used for the purpose
of paying motor-vehicle fuel tax refunds as provided by law. The state treasurer shall credit
the remainder of such amounts as follows: To the state freeway highway fund which fund is hereby created, amounts specified in K.S.A. 79-34,142, and amendments thereto, to be
expended in the manner provided in K.S.A. 68-2301 et seq., and amendments thereto, to a
special city and county highway fund which is hereby created, amounts specified in K.S.A.
79-34,142, and amendments thereto, to be apportioned and distributed in the manner pro-
vided in K.S.A. 79-3425c, and amendments thereto, and to the Kansas qualified agricultural
ethyl alcohol producer incentive fund, which is hereby created in the state treasury, in the
amount and in the manner specified in K.S.A. 79-34,161, and amendments thereto, to be
expended in the manner provided in K.S.A. 79-34,162, and amendments thereto, and to the public use general aviation airport development fund, amounts specified in K.S.A. 79-34,142, and amendments thereto, to be expended in accordance with the provisions of K.S.A. 75- 5061, and amendments thereto.
(b) On each day, after the state treasurer has received certification from the secretary of transportation that provisions have been made for the payment of the pro rata share of the amount required to be paid on the next ensuing payment date of either the principal of or the interest on the outstanding highway bonds issued pursuant to K.S.A. 68-2304 and amendments thereto, the state treasurer shall transfer from the state freeway fund to the state highway fund an amount specified in K.S.A. 79-34,143, and amendments thereto.
Sec. 22. K.S.A. 79-3461 is hereby amended to read as follows: 79-3461. A revolving
fund designated as the motor-vehicle fuel motor fuels tax refund fund not to exceed one million dollars ($1,000,000) $1,000,000 shall be set apart and maintained by the director
from the motor-vehicle fuel motor fuels tax collected under the provisions of article 34 of
chapter 79 of the General Statutes of 1935 and the 1947 Supplement thereto and acts amendatory thereof or supplemental Kansas Statutes Annotated, and amendments thereto,
and held by the state treasurer for the payment of all refunds authorized by this act.
Sec. 23. K.S.A. 79-3464d is hereby amended to read as follows: 79-3464d. (a) Any
person who is responsible for the collection or payment of motor vehicle fuel or, special
fuel or aviation fuel tax or control, receipt, custody or disposal of funds due and owing under
the Kansas motor fuel tax law who fails to collect such tax, or account for and pay over such
tax or attempts in any manner to evade or defeat such tax or the payment thereof, shall be
personally liable for the total amount of the tax evaded, or not collected, or not accounted
for and paid over, together with any interest and penalty imposed thereon. The provisions
of this section shall apply regardless of the relationship with the licensee held by such person
and regardless of the business form of the licensee.
(b) Any person having control or supervision of or supervising employees having control
or supervision of the collection, filing of returns, accounting or payment of motor vehicle
fuel or, special fuel or aviation fuel taxes of a licensee shall be personally liable for the tax,
penalty and interest thereon, if the licensee fails to collect the tax, file returns, pay the tax
or attempts in any manner to evade or defeat the tax.
(c) The liability of each officer, director, shareholder or employee for a corporation's
failure to collect the tax, file returns or pay any liability due survives the dissolution of the
corporation.
(d) The liability of each member for a limited liability company's failure to collect the
tax, file returns or pay any liability due survives the dissolution of the limited liability com-
pany.
(e) Evidence of personal or individual responsibility for the collection or payment of
taxes, filing return, control, receipt, custody or disposal of funds may include any one or
more of the following:
(1) Signatory on any tax registration form;
(2) signatory on any tax return;
(3) authorization to sign tax registration forms or tax returns;
(4) authorization to draw on the licensee's funds;
(5) authorization to pledge licensee's assets as collateral to receive loans, advances or
lines of credit from thrift institutions on behalf of the corporations;
(6) authorization to bind the licensee to contracts for sales or purchases in day-to-day
business operations; or
(7) authorization to directly supervise employees who are authorized to perform any
one or all of the above.
Sec. 24. K.S.A. 79-3464e is hereby amended to read as follows: 79-3464e. (a) It shall
be unlawful for any distributor, importer, exporter, manufacturer, retailer, user, carrier,
transporter or any other person to:
(1) Use, sell, manufacture or deliver any motor-vehicle fuels or, special fuels or aviation fuels at any place without having a valid, unsuspended and unrevoked license as required
by this act;
(2) fail, neglect or refuse to render to the director at the director's office, within the
time required by the provisions of this act, any report or statement required by or purporting
to be under the provisions of this act, or purporting to be under the rules and regulations
promulgated by the director under such provisions;
(3) fail, neglect or refuse to pay the director, within the time required by this act, any
tax, taxes, interest or penalties for which such person is liable under the provisions of this
act;
(4) fail, neglect or refuse to keep and maintain for a period of three years, or fail to
make fully and freely accessible during business hours to the director, the director's deputy
or agent, all books, papers and records required by this act to be kept and maintained and
so made accessible;
(5) use any motor fuels purchased as exempt in a taxable manner;
(6) sell, receive or transport motor fuels without proper and correct manifests;
(7) sell or hold for sale dyed fuel that such person knows or has reason to know will not
be used for a nontaxable purpose;
(8) violate any other provision of this act not specified in this section;
(9) aid and abet in violations contained in paragraphs (1) through (8);
(10) falsify, forge or willfully conceal from the director or director's agent, any books,
papers and records required by this act;
(11) knowingly submit a false or forged application for licensure under this act;
(12) knowingly make any false or forged application for a refund permit or claim for
refund or to knowingly make any false statement in any application for a refund permit, or
in any claim for a refund;
(13) present, or cause to be presented, to the director for credit, or for refund, any
false, forged or altered invoice of refund;
(14) falsify, forge or alter any documents associated with the use, sale, manufacture or
delivery of any motor fuels;
(15) deliver or accept delivery, with the intent to evade the obligation of collecting,
remitting or accounting for motor fuel tax to this state, any motor fuel, knowing that the
manifest or bill of lading indicates that the motor fuel was intended to be delivered to a tax
exempt entity or intended to be delivered to a location outside the state of Kansas;
(16) use dyed fuel other than for a nontaxable use;
(17) willfully alters or attempts to alter, the strength or composition of any dye in any
dyed fuel; or
(18) aid and abet in violations contained in paragraphs (10) through (17).
(b) Violation of paragraphs (1) through (9) is a misdemeanor. Any person convicted of
such violation shall be punished by a fine of not less than $1,000 nor more than $10,000,
or imprisoned in the county jail for not less than 30 days nor more than one year, or by
both such fine and imprisonment. Upon a second or subsequent conviction, such person
shall be punished by a fine of not less than $5,000 nor more than $50,000, or by impris-
onment in the county jail for not less than 60 days nor more than two years, or by both such
fine and imprisonment.
(c) Violation of paragraphs (10) through (18) is a severity level 10, nonperson felony.
(d) For any violations of this section, the director may suspend or revoke any license
issued to any person found to be in violation and assess an administrative penalty of $10
per gallon of motor fuels involved, or a penalty of not less than $1,000 nor more than
$10,000; and upon a second or subsequent violation, a penalty of $25 per gallon of motor
fuels involved or a penalty of not less than $5,000 nor more than $50,000.
Sec. 25. K.S.A. 79-34,141 is hereby amended to read as follows: 79-34,141. On and
after July 1, 1992 1998, the tax rates imposed under this act shall be not less than:
(a) On motor-vehicle fuels, $.18 per gallon, or fraction thereof;
(b) on special fuels, $.20 per gallon, or fraction thereof; and
(c) on LP-gas, $.17 per gallon, or fraction thereof.; and
(d) on aviation fuels $.06 per gallon, or fraction thereof.
Sec. 26. K.S.A. 79-34,142 is hereby amended to read as follows: 79-34,142. (a) Except as provided in subsection (b), on and after August 1, 1989 1998, the state treasurer shall
credit amounts received pursuant to K.S.A. 79-3408, 79-3408c, 79-3491a, 79-3492 and
79-34,118 and amendments thereto as follows: To the state freeway highway fund 59.5%
and to the special city and county highway fund 40.5%.
(b) On and after August 1, 1998, the state treasurer shall credit amounts received pur- suant to K.S.A. 79-3408 and 79-3408c, and amendments thereto, from the taxation of aviation fuels to the public use general aviation airport development fund.'';
By renumbering sections accordingly;
Also on page 10, in line 11, following ``8-116a'' by inserting ``, 79-3401, 79-3402, 79-3403,
79-3405, 79-3406, 79-3407, 79-3408, 79-3408c, 79-3408g, 79-3409, 79-3410, 79-3415, 79-
3416, 79-3417, 79-3419, 79-3420, 79-3421, 79-3424, 79-3425, 79-3461, 79-3464d, 79-3464e,
79-34,141, 79-34,142 and 79-34,143'';
In the title, by striking all in lines 12 through 15 and inserting:
``AN ACT relating to transportation; concerning motor vehicles and aircraft; amending
K.S.A. 8-116a, 79-3401, 79-3402, 79-3403, 79-3405, 79-3406, 79-3407, 79-3408, 79-3408c,
79-3408g, 79-3409, 79-3410, 79-3415, 79-3416, 79-3417, 79-3419, 79-3420, 79-3421, 79-
3424, 79-3425, 79-3461, 79-3464d, 79-3464e, 79-34,141 and 79-34,142 and K.S.A. 1997
Supp. 8-135 and 8-145 and repealing the existing sections; also repealing K.S.A. 79-3408g
and 79-34,143.''; and the bill be passed as amended.
Upon unanimous consent, the House referred back to the regular order of business,
Introduction of Bills and Concurrent Resolutions.
INTRODUCTION OF BILLS AND CONCURRENT RESOLUTIONS
The following bill was introduced and read by title:
HB 3014, An act concerning the transportation of hazardous materials; authorizing cer-
tain federal exemptions, by Committee on Appropriations.
REPORT ON ENGROSSED BILLS
HB 2687 reported correctly engrossed March 17, 1998.
On motion of Rep. Jennison, the House adjourned until 11:00 a.m., Thursday, March 19,
1998.