402             1997 Session Laws of Kansas             Ch. 113

An Act concerning nongame, threatened and endangered species; relating to listing of and
recovery plans for such species; allowing tax credits for certain taxes and assessments;
amending K.S.A. 32-957, 32-960 and 32-962 and K.S.A. 1996 Supp. 79-32,117 and re-
pealing the existing sections; also repealing K.S.A. 1996 Supp. 32-963a.

Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 32-957 is hereby amended to read as follows: 32-
957. K.S.A. 32-957 through 32-963, 32-1009 through 32-1012 and, 32-
1033 and sections 3 and 4, and amendments thereto, shall be known and
may be cited as the nongame and endangered species conservation act.

Sec. 2. K.S.A. 32-960 is hereby amended to read as follows: 32-960.
(a) The secretary shall determine whether any species of wildlife indig-
enous to the state is a threatened species or an endangered species in
this state because of any of the following factors:

(1) The present or threatened destruction, modification or curtail-
ment of its habitat or range;

Ch. 113             1997 Session Laws of Kansas             403

(2) the overutilization of such species for commercial, sporting, sci-
entific, educational or other purposes;

(3) disease or predation;

(4) the inadequacy of existing regulatory mechanisms; or

(5) the presence of other natural or man-made factors affecting its
continued existence within this state.

(b) (1) The secretary shall make the determinations required by sub-
section (a) on the basis of the best scientific, commercial and other data
available to the secretary and after consultation, as appropriate, with fed-
eral agencies, other interested state agencies and interested persons and
organizations.

(2) In determining whether any species of wildlife is a threatened
species or an endangered species in this state, the secretary shall take
into consideration those actions, if any, being carried out or about to be
carried out by the federal government, by other states, by other agencies
of this state or political subdivisions thereof, or by nongovernmental per-
sons or organizations which may affect the species under consideration.

(3) Species of wildlife which occur in this state and which have been
determined to be threatened species or endangered species pursuant to
Pub. L. No. 93-205 (December 28, 1973), the endangered species act of
1973, and amendments thereto, shall receive full consideration by the
secretary to determine whether each such species is a threatened or an
endangered species in this state.

(c) (1) The secretary shall adopt, in accordance with K.S.A. 32-805
and amendments thereto, rules and regulations pursuant to K.S.A. 32-963
and amendments thereto which contain a list of all species of wildlife
indigenous to this state which have been determined to be endangered
species pursuant to this section and a list of all such species which have
been determined to be threatened species pursuant to this section. Each
list shall refer to the species contained therein by their scientific and
common names, if any, and shall specify with respect to each such species
the portion of the range of such species within this state in which it is
threatened or endangered.

(2) The secretary may not add a species to nor remove a species from
any such list unless the secretary has first:

(A) Published a public notice of such proposed action;

(B) notified the governor of any state which shares a common border
with this state and in which the subject species is known to occur that
such action is being proposed; and

(C) allowed at least 30 days following publication of such public no-
tice for comment from the public and other interested parties, except that
in cases where the secretary determines that an emergency situation ex-
ists, the secretary may add species to such lists provided the secretary has
published a public notice that such an emergency situation exists together
with a summary of facts which support such determination (i) in cases

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where the secretary determines that an emergency situation exists, pub-
lished a public notice that such an emergency situation exists, together
with a summary of facts that support such determination; or (ii) in all
other cases, conducted public informational meetings to coincide with the
scientific review outside the agency which will recommend action with
regard to the addition of the species to or removal of the species from the
list. All documents within the control and custody of the secretary that
pertain to adding the species to or removing the species from the list shall
be made available to the public in a local repository, such as a public
library, courthouse or regional office of the department. The secretary
shall also mail a notice of the proposed addition of the species to or re-
moval of the species from the list to federal and state agencies and local
and tribal governments that are or may be affected by results of the review
and to all individuals and organizations that have requested notification
of department action regarding the administration of this act. The sec-
retary shall also issue news releases to publicize the proposed addition of
the species to or removal of the species from the list.

(3) Upon the petition of an interested person, the secretary shall con-
duct a review of any listed or unlisted species of wildlife proposed to be
removed from or added to either of the lists adopted pursuant to this
subsection (c), but only if the secretary makes a determination and pub-
lishes a public notice that such person has presented substantial evidence
which warrants such a review. Once the secretary has made a determi-
nation that a review is warranted, the process described in subsection
(c)(2), including the conducting of a public information meeting, shall
apply.

(d) Every five years the secretary shall conduct a review of the species
listed pursuant to this act (except for those species listed pursuant to the
federal endangered species act of 1973, as amended) and shall submit any
proposed changes in the listings to the following for consideration: (1)
Federal and state agencies and local and tribal governments that are or
may be affected by results of the change; and (2) all individuals and or-
ganizations that have requested notification of departmental action re-
garding administration of this act. After at least 90 days for comment by
the agencies, governments, individuals and organizations to which the
proposed changes are submitted, the secretary shall submit to the com-
mission proposed rules and regulations making any changes that the sec-
retary determines should be made in the listings.

New Sec. 3. (a) On or before January 1, 1998, the secretary shall
adopt, in accordance with K.S.A. 32-805 and amendments thereto, rules
and regulations establishing procedures for developing and implementing
recovery plans for all species listed as in need of conservation, threatened
or endangered. The secretary shall give priority to development of re-
covery plans for particular species based on a cumulative assessment of

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the scientific evidence available. Based on the priority ranking, the sec-
retary shall develop and begin implementation of recovery plans for at
least two listed species on or before January 1, 1999.

(b) Whenever a species is added to the list of threatened or endan-
gered species, the secretary shall establish a volunteer local advisory com-
mittee composed of members broadly representative of the area affected
by the addition of the species to the list. Members shall include repre-
sentatives of specialists from academic institutions, agribusiness and other
trade organizations, state environmental and conservation organizations
and other interested organizations and individuals. In addition, the mem-
bership shall include, if appropriate, landowners and public officials rep-
resenting state, local and tribal governments. To the maximum extent
possible, committee membership shall evenly balance the interests of all
potentially affected groups and institutions.

(c) The advisory committee shall: (1) Work with the secretary to adapt
the listing of the species and the recovery plan for the species to the social
and economic conditions of the affected area; and (2) disseminate infor-
mation to the public about the scientific basis of the decision to list the
species, the regulatory process and incentives available to landowners
pursuant to this act.

(d) If a species in need of conservation receives a priority ranking to
develop and begin implementation of a recovery plan, the secretary shall
establish a volunteer local advisory committee in the same manner as
provided by subsection (b) to work with the secretary to adapt the recov-
ery plan and disseminate information to the public.

(e) In implementing a recovery plan for a species, the secretary shall
consider any data, recommendations and information provided by the
advisory committee.

New Sec. 4. The secretary shall adopt, in accordance with K.S.A. 32-
805 and amendments thereto, rules and regulations establishing those
guidelines prescribed in the operational directive of the secretary dated
January 18, 1996, as the guidelines for law enforcement actions and per-
mit requirements relating to the species listed as threatened or endan-
gered pursuant to the Kansas nongame and endangered species conser-
vation act and based on a determination of ``intent'' as it relates to lawful
activities associated with normal farming and ranching practices. In ad-
dition, such rules and regulations incorporating the operational directive
shall establish guidelines for enforcement activities related to develop-
ment of residential and commercial property on privately owned property
financed with private, nonpublic funds.

Sec. 5. K.S.A. 32-962 is hereby amended to read as follows: 32-962.
(a) The secretary shall establish such programs, including acquisition of
land or aquatic habitat, as are deemed necessary for the conservation of
nongame, threatened and endangered species. The secretary shall utilize

406             1997 Session Laws of Kansas             Ch. 113

all authority vested in the secretary by the laws of this state to carry out
the purposes of this section with the exception that the secretary shall
not utilize the power of eminent domain to carry out such programs
unless a specific authorization and appropriation is made therefor by the
legislature.

(b) (1) In carrying out programs authorized by this section, the sec-
retary may enter into agreements with federal agencies, other states, other
state agencies, political subdivisions of this state or with private persons
for administration and management of any area established under this
section or utilized for conservation of nongame, species, species in need
of conservation or threatened or endangered species. Such programs shall
include, but not be limited to, the following conservation agreements:

(A) Prelisting conservation agreement: An agreement identifying land
where the contracting entity agrees to carry out management activities
that increase the likelihood of species survival before a species is listed as
threatened or endangered. The intent of such agreement would be to allow
the contracting entity to carry out management activities specified in the
agreement during the life of the agreement without penalties of law en-
forcement action or permitting requirements if the species is listed at a
later date.

(B) Safe harbor agreement: An agreement in which the contracting
entity agrees to maintain or enhance suitable, but currently unoccupied,
habitat for a species listed as in need of conservation, threatened or en-
dangered so as to increase utilization of the habitat by a listed species.
The intent of such agreement would be to protect the contracting entity
from any restrictions on land use that might otherwise occur if a listed
species immigrates into the habitat.

(C) No take agreement: An agreement allowing the contracting entity
to implement voluntary management activities that maintain, enhance, set
aside or create habitat for species listed as in need of conservation, threat-
ened or endangered. The intent of such agreement would be to provide
assurance that the management activities specified in the agreement
would not lead to penalties of law enforcement action or permitting
requirements if future changes in land use are needed.

(2) The initial term of any agreement pursuant to subsection (b)(1)
shall be five years. An agreement may be continued, with or without
modification, after the five-year term, subject to review and determination
by all parties. In the absence of a mutually satisfactory determination by
the parties that an agreement should continue, the agreement will ter-
minate.

(c) The governor shall review other programs administered by the
governor and utilize such programs in furtherance of the purposes of the
nongame and endangered species conservation act. All state agencies shall
cooperate with the secretary in furtherance of the conservation of non-
game, threatened and endangered species.

Ch. 113             1997 Session Laws of Kansas             407

New Sec. 6. (a) There shall be allowed two types of credits against
the tax liability of a taxpayer imposed under the Kansas income tax act
related to real property that is both:

(1) Designated by the secretary of wildlife and parks pursuant to the
nongame and endangered species conservation act as critical habitat for
a threatened or endangered species or certified by the secretary of wildlife
and parks as land known to support populations of species in need of
conservation; and

(2) included in management activities as part of a recovery plan, or
an agreement identified in subsection (b) of K.S.A. 32-962 and amend-
ments thereto, as approved by the secretary of wildlife and parks, for a
species listed as threatened, endangered or in need of conservation pur-
suant to the nongame and endangered species conservation act.

(b) There shall be allowed as an annual credit against the tax liability
of a taxpayer imposed an amount equal to the total amount paid by the
taxpayer during the taxable year for ad valorem taxes and assessments that
are imposed by the state or by any political or taxing subdivision of the
state or related to real property described in subsection (a) for each year
that the management activities specified in the recovery plan or agree-
ment described in subsection (a)(2) remain in effect and apply to such
real property. The credit allowed by this subsection shall not exceed the
amount of tax imposed under the Kansas income tax act reduced by the
sum of any other credits allowable pursuant to law.

(c) There shall be allowed as a credit against the tax liability of a
taxpayer imposed under the Kansas income tax act an amount equal to
costs incurred by the taxpayer for habitat management or construction
and maintenance of improvements on real property described in subsec-
tion (a). Such costs shall be for management or improvements in accord-
ance with management activities as a part of a recovery plan or conser-
vation agreement identified in subsection (b) of K.S.A. 32-962 and
amendments thereto, as approved by the secretary of wildlife and parks,
for a species listed as threatened, endangered or in need of conservation
pursuant to the nongame and endangered species conservation act. The
tax credit allowed by this subsection shall be deducted from the taxpayer's
income tax liability for the taxable year in which the expenditures are
made by the taxpayer. If the amount of such tax credit exceeds the tax-
payer's income tax liability for such taxable year, the taxpayer may elect,
at the time of filing the initial return upon which the credit is claimed,
to: (1) Carry over the amount thereof that exceeds such tax liability for
deduction from the taxpayer's income tax liability in the next succeeding
taxable year or years until the total amount of the tax credit has been
deducted from tax liability; or (2) receive reimbursement of the amount
thereof that exceeds such tax liability, to be paid from amounts appro-
priated to the secretary of revenue for that purpose upon warrants of the

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director of accounts and reports issued pursuant to vouchers approved
by the secretary or a person or persons designated by the secretary.

(d) The provisions of this section shall be applicable to all taxable
years commencing after December 31, 1997, but before January 1, 2003.

Sec. 7. K.S.A. 1996 Supp. 79-32,117 is hereby amended to read as
follows: 79-32,117. (a) The Kansas adjusted gross income of an individual
means such individual's federal adjusted gross income for the taxable year,
with the modifications specified in this section.

(b) There shall be added to federal adjusted gross income:

(i) Interest income less any related expenses directly incurred in the
purchase of state or political subdivision obligations, to the extent that
the same is not included in federal adjusted gross income, on obligations
of any state or political subdivision thereof, but to the extent that interest
income on obligations of this state or a political subdivision thereof issued
prior to January 1, 1988, is specifically exempt from income tax under the
laws of this state authorizing the issuance of such obligations, it shall be
excluded from computation of Kansas adjusted gross income whether or
not included in federal adjusted gross income. Interest income on obli-
gations of this state or a political subdivision thereof issued after Decem-
ber 31, 1987, shall be excluded from computation of Kansas adjusted
gross income whether or not included in federal adjusted gross income.

(ii) Taxes on or measured by income or fees or payments in lieu of
income taxes imposed by this state or any other taxing jurisdiction to the
extent deductible in determining federal adjusted gross income and not
credited against federal income tax. This paragraph shall not apply to taxes
imposed under the provisions of K.S.A. 79-1107 or 79-1108, and amend-
ments thereto, for privilege tax year 1995, and all such years thereafter.

(iii) The federal net operating loss deduction.

(iv) Federal income tax refunds received by the taxpayer if the de-
duction of the taxes being refunded resulted in a tax benefit for Kansas
income tax purposes during a prior taxable year. Such refunds shall be
included in income in the year actually received regardless of the method
of accounting used by the taxpayer. For purposes hereof, a tax benefit
shall be deemed to have resulted if the amount of the tax had been de-
ducted in determining income subject to a Kansas income tax for a prior
year regardless of the rate of taxation applied in such prior year to the
Kansas taxable income, but only that portion of the refund shall be in-
cluded as bears the same proportion to the total refund received as the
federal taxes deducted in the year to which such refund is attributable
bears to the total federal income taxes paid for such year. For purposes
of the foregoing sentence, federal taxes shall be considered to have been
deducted only to the extent such deduction does not reduce Kansas tax-
able income below zero.

(v) The amount of any depreciation deduction or business expense

Ch. 113             1997 Session Laws of Kansas             409

deduction claimed on the taxpayer's federal income tax return for any
capital expenditure in making any building or facility accessible to the
handicapped, for which expenditure the taxpayer claimed the credit al-
lowed by K.S.A. 79-32,177, and amendments thereto.

(vi) Any amount of designated employee contributions picked up by
an employer pursuant to K.S.A. 12-5005, 20-2603, 74-4919 and 74-4965,
and amendments to such sections.

(vii) The amount of any charitable contribution made to the extent
the same is claimed as the basis for the credit allowed pursuant to K.S.A.
1996 Supp. 79-32,196, and amendments thereto.

(viii) The amount of any ad valorem taxes and assessments paid and
the amount of any costs incurred for habitat management or construction
and maintenance of improvements on real property, claimed for deduction
in determining federal adjusted gross income, to the extent the same is
claimed as the basis for any credit allowed pursuant to section 6 and
amendments thereto.

(c) There shall be subtracted from federal adjusted gross income:

(i) Interest or dividend income on obligations or securities of any
authority, commission or instrumentality of the United States and its pos-
sessions less any related expenses directly incurred in the purchase of
such obligations or securities, to the extent included in federal adjusted
gross income but exempt from state income taxes under the laws of the
United States.

(ii) Any amounts received which are included in federal adjusted
gross income but which are specifically exempt from Kansas income tax-
ation under the laws of the state of Kansas.

(iii) The portion of any gain or loss from the sale or other disposition
of property having a higher adjusted basis for Kansas income tax purposes
than for federal income tax purposes on the date such property was sold
or disposed of in a transaction in which gain or loss was recognized for
purposes of federal income tax that does not exceed such difference in
basis, but if a gain is considered a long-term capital gain for federal in-
come tax purposes, the modification shall be limited to that portion of
such gain which is included in federal adjusted gross income.

(iv) The amount necessary to prevent the taxation under this act of
any annuity or other amount of income or gain which was properly in-
cluded in income or gain and was taxed under the laws of this state for a
taxable year prior to the effective date of this act, as amended, to the
taxpayer, or to a decedent by reason of whose death the taxpayer acquired
the right to receive the income or gain, or to a trust or estate from which
the taxpayer received the income or gain.

(v) The amount of any refund or credit for overpayment of taxes on
or measured by income or fees or payments in lieu of income taxes im-
posed by this state, or any taxing jurisdiction, to the extent included in
gross income for federal income tax purposes.

410             1997 Session Laws of Kansas             Ch. 113

(vi) Accumulation distributions received by a taxpayer as a beneficiary
of a trust to the extent that the same are included in federal adjusted
gross income.

(vii) Amounts received as annuities under the federal civil service
retirement system from the civil service retirement and disability fund
and other amounts received as retirement benefits in whatever form
which were earned for being employed by the federal government or for
service in the armed forces of the United States.

(viii) Amounts received by retired railroad employees as a supple-
mental annuity under the provisions of 45 U.S.C. 228b (a) and 228c (a)(1)
et seq.

(ix) Amounts received by retired employees of a city and by retired
employees of any board of such city as retirement allowances pursuant to
K.S.A. 13-14,106, and amendments thereto, or pursuant to any charter
ordinance exempting a city from the provisions of K.S.A. 13-14,106, and
amendments thereto.

(x) For taxable years beginning after December 31, 1976, the amount
of the federal tentative jobs tax credit disallowance under the provisions
of 26 U.S.C. 280 C. For taxable years ending after December 31, 1978,
the amount of the targeted jobs tax credit and work incentive credit dis-
allowances under 26 U.S.C. 280 C.

(xi) For taxable years beginning after December 31, 1986, dividend
income on stock issued by Kansas Venture Capital, Inc.

(xii) For taxable years beginning after December 31, 1989, amounts
received by retired employees of a board of public utilities as pension and
retirement benefits pursuant to K.S.A. 13-1246, 13-1246a and 13-1249
and amendments thereto.

(xiii) For taxable years beginning after December 31, 1993, the
amount of income earned on contributions deposited to an individual
development account under K.S.A. 1996 Supp. 79-32,117h, and amend-
ments thereto.

(d) There shall be added to or subtracted from federal adjusted gross
income the taxpayer's share, as beneficiary of an estate or trust, of the
Kansas fiduciary adjustment determined under K.S.A. 79-32,135, and
amendments thereto.

(e) The amount of modifications required to be made under this sec-
tion by a partner which relates to items of income, gain, loss, deduction
or credit of a partnership shall be determined under K.S.A. 79-32,131,
and amendments thereto, to the extent that such items affect federal
adjusted gross income of the partner.

Sec. 8. K.S.A. 32-957, 32-960 and 32-962 and K.S.A. 1996 Supp. 32-
963a and 79-32,117 are hereby repealed.

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Sec. 9. This act shall take effect and be in force from and after its
publication in the Kansas register.

Approved April 22, 1997.

Published in the Kansas Register: May 1, 1997.