SB 152--Am. by H
As Amended by House Committee
[As Amended by Senate Committee of the
As Amended by Senate Committee
Session of 1997
SENATE BILL No. 152
By Committee on Commerce
14 AN ACT concerning the high performance incentive program; amending
15 K.S.A. 1996 Supp. 74-50,131 and 74-50,134 and repealing the existing
18 Be it enacted by the Legislature of the State of Kansas:
19 Section 1. K.S.A. 1996 Supp. 74-50,131 is hereby amended to read
20 as follows: 74-50,131. (a) As used in this act: ``Qualified firm'' means a
21 for-profit business establishment, subject to state income, sales or prop-
22 erty taxes, identified under the manufacturing standard industrial classi-
23 fication codes as in effect July 1, 1993, major groups 20 through 39, major
24 groups 40 through 49, and major groups 60 through 89, or is identified
25 as a corporate or regional headquarters or back-office operation of a na-
26 tional or multi-nation corporation regardless of SIC code.
27 (b) In the case of firms in major groups 40 through 49, and major
28 groups 60 through 89, the business establishment must also demonstrate
29 the following:
30 (1) More than one-half of its gross revenues are a result of sales to
31 commercial or governmental customers outside the state of Kansas; or
32 (2) more than one-half of its gross revenues are a result of sales to
33 Kansas manufacturing firms within major groups 20 through 39; or
34 (3) more than one-half of its gross revenues are a result of a combi-
35 nation of sales described in (1) and (2).
36 (c) For purposes of determining whether one of the average
37 wage options described in subsection (d) below is satisfied, business
38 establishments located within a metropolitan county, as defined in
39 K.S.A. 1996 Supp. 74-50,114, will be compared only to other busi-
40 nesses within that metropolitan county, and business establish-
41 ments located outside of a metropolitan county will be compared to
42 businesses within an aggregation of counties representing the busi-
43 ness establishment's region of the state, which regional aggregation
SB 152--Am. by H
1 will exclude metropolitan counties. Such aggregation shall be de-
2 termined by the department of commerce and housing.
(c) (d) Additionally, a business establishment having met the criteria
4 as established in subsection (a) or (b), and using the comparison
5 method described in subsection (c), must meet one of the following
7 (1) The establishment with 500 or fewer full-time equivalent em-
8 ployees will provide an average wage that is above the average wage paid
9 by all firms with 500 or fewer full-time equivalent employees in the same
10 county located in areas of the state having similar population densities,
11 and which share the same two-digit standard industrial classification code.
12 (2) The establishment with 500 or fewer full-time equivalent em-
13 ployees is the sole firm within its two-digit standard industrial classifica-
14 tion code in the county in which it is located and its aggregated population
15 density area which has 500 or fewer full-time equivalent employees.
16 (3) The establishment with more than 500 full-time equivalent em-
17 ployees will provide an average wage that is above the average wage paid
18 by firms with more than 500 full-time equivalent employees in the same
19 county located in areas of the state having similar population densities,
20 and which share the same two-digit standard industrial classification code.
21 (4) The establishment with more than 500 full-time equivalent em-
22 ployees is the sole firm within its two-digit standard industrial classifica-
23 tion code in the county in which it is located and its aggregated population
24 density area which has 500 or more full-time equivalent employees, in
25 which event it shall either provide an average wage that is above the
26 average wage paid by all firms with 500 or fewer full-time equivalent
27 employees in the same county located in areas of the state of Kansas
28 having similar population densities, and which share the same two-digit
29 standard industrial classification code, or be the sole firm with within its
30 two-digit standard industrial classification code in the county and its ag-
31 gregated population density area.
32 (5) Excluding [(e) As an alternative to the requirements of sub-
33 sections (c) and (d), a firm having met the requirements of subsec-
34 tions (a) or (b), may qualify, if excluding] taxable disbursements to
35 company owners, the business establishment's annual average wage must
36 [be greater than or] equal [to] 1.5 times the aggregate average wage
37 paid by all for-profit businesses in the state [industries covered by the
38 employment security law based on data maintained by the secretary
39 of human resources].
40 (5) (6) [f] For the purposes of this subsection [section], the number
41 of full-time equivalent employees shall be determined by adding the num-
42 ber of full-time employees to the number of hours worked by part-time
43 employees divided by 40.
SB 152--Am. by H
(d) (e) [g] The secretary of commerce and housing shall certify an-
2 nually to the secretary of revenue that a firm meets the criteria for a
3 qualified firm and that the firm is eligible for the benefits and assistance
4 provided under this act. The secretary of commerce and housing shall
5 publish rules and regulations for the implementation of this act. Such
6 rules and regulations shall include, but not be limited to:
7 (1) A definition of ``training and education'' for purposes of K.S.A.
8 1996 Supp. 74-50,132 and amendments thereto.
9 (2) Establishment of eligibility requirements and application proce-
10 dures for expenditures from the high performance incentive fund created
11 in K.S.A. 1996 Supp. 74-50,133 and amendments thereto.
12 (3) Establishment of approval guidelines for private consultants au-
13 thorized pursuant to K.S.A. 1996 Supp. 74-50,133 and amendments
15 (4) Establishment of guidelines for prioritizing business assistance
16 programs pursuant to K.S.A. 1996 Supp. 74-50,133 and amendments
18 (5) A definition of ``commercial customer'' for the purpose of K.S.A.
19 1996 Supp. 74-50,133 and amendments thereto.
20 (6) A definition of ``headquarters'' for the purpose of K.S.A. 1996
21 Supp. 74-50,133 and amendments thereto.
22 (7) A definition of ``similar population densities'' as used in subsection
24 Sec. 2. K.S.A. 1996 Supp. 74-50,134 is hereby amended to read as
25 follows: 74-50,134. During fiscal year 1997 1998, Kansas, Inc. shall com-
26 mission an analysis of this program's impact on job training and retraining.
27 program. Within Kansas, Inc.'s discretion, the analysis shall evaluate all
28 aspects of the program, and particularly the impact of program incentives
30 (a) Job training and retraining;
31 (b) capital investment and related job creation;
32 (c) usage of consulting services to improve overall business opera-
34 (d) export of goods and services outside the state; and
35 (e) usage of other business assistance programs administered by the
36 department of commerce and housing, the Kansas technology enterprise
37 corporation and the mid-America manufacturing technology center. The
38 analysis shall include a recommendation for continuation, discontinuation
39 or alteration of the program. The analysis shall be reported to the joint
40 committee on economic development.
41 Sec. 3. K.S.A. 1996 Supp. 74-50,131 and 74-50,134 are hereby re-
SB 152--Am. by H
1 Sec. 4. This act shall take effect and be in force from and after its
2 publication in the statute book.