Session of 1998
By Legislative Post Audit Committee
            9             AN ACT concerning the heritage trust fund; relating to historic preser-
10             vation grants; amending K.S.A. 75-2729 and repealing the existing
11             section.
13       Be it enacted by the Legislature of the State of Kansas:
14           Section 1. K.S.A. 75-2729 is hereby amended to read as follows:
15       75-2729. (a) (1) There is hereby established in the state treasury the
16       heritage trust fund. All moneys deposited in the heritage trust fund shall
17       be used for the purpose of awarding grants to assist historic preservation
18       projects involving property included in the national register of historic
19       places or the state register of historic places, excluding property owned
20       by the state or federal government, and shall be used by the state histor-
21       ical society for the administration of the heritage trust fund program. At
22       least 50% of the amount awarded annually in grants shall be used for the
23       preservation of eligible properties owned by county and local govern-
24       ments, county and local historical societies and by private nonprofit not-
25       for-profit organizations. The state historical society may also provide grant
26       assistance from moneys in the heritage trust fund on a matching basis
27       and also may establish a revolving fund loan program from moneys in
28       such the heritage trust fund. The state historical society may establish
29       different matching fund requirements for the various types of applicants,
30       but the matching contributions required from for-profit ;c/orporations en-
31       tities shall be dollar for dollar on a $1 for $1 basis. For-profit ;c/orporation
32       applicants shall be assisted only if the property's continued existence is
33       threatened or its rehabilitation is not economically feasible without grant
34       assistance. The state historical society shall ensure that such moneys are
35       expended for the purpose of this section, and may adopt rules and reg-
36       ulations as necessary to carry out the purpose of this section.
37           (2) In evaluating grant applications involving historic preservation
38       projects under subsection (a)(1), the state historical society shall consider
39       the following factors: The level of historical significance of the property;
40       the condition of the property; the urgency of the preservation work pro-
41       posed; whether or not the property is endangered; the type of work pro-
42       posed; a geographical distribution of assisted properties; the administra-
43       tive ability of the applicant; the potential benefit to the community and

HB 2611


  1       the state; community support for the project; ineligibility of the project
  2       for other funds; and an assessment of the need of the owner for the grant
  3       assistance to do the project.
  4           (3) (A) The state historical society shall establish provisions to recap-
  5       ture grant moneys in accordance with the following factors: If an approved
  6       rehabilitated building is held by the grantee for longer than five years
  7       after the ;c/ompletion of date the grant was awarded for the project, there
  8       ;s shall be no recapture of the grant funds; if the owner, or designated
  9       heir, in the case of the owner's death, disposes of the property after a
10       holding period of less than one year after the ;c/ompletion of date the grant
11       was awarded for the project, 100% of the grant ;s shall be recaptured;
12       and for properties held between one and five years after the date the
13       grant was awarded for the project, the grant recapture amount ;s shall
14       be reduced by 20% per year. If the grantee transfers the approved re-
15       habilitated building within the five-year period after the grant award date
16       to any county or local government, any county or other local historical
17       society or any private not-for-profit organization, then there shall be no
18       recapture of the grant funds.
19           (B) The state historical society may inspect a rehabilitated property
20       at any time during the five-year period and may revoke or invalidate the
21       approval if work was not undertaken as presented in the grant application
22       or if further unapproved alterations have been made. Modifications made
23       during the five-year period following the completion of the grant project
24       shall be made in accordance with standards established by the state his-
25       torical society.
26           (b) On or before the 10th of each month, the director of accounts
27       and reports shall transfer from the state general fund to the heritage trust
28       fund interest earnings based on:
29           (1) The average daily balance of moneys in the heritage trust fund
30       for the preceding month; and
31           (2) the net earnings rate for the pooled money investment portfolio
32       for the preceding month.
33           (c) Except as otherwise provided in this section, all expenditures from
34       the heritage trust fund shall be made in accordance with appropriation
35       acts upon warrants of the director of accounts and reports issued pursuant
36       to vouchers approved by the secretary of the state historical society or a
37       person designated by the secretary.
38           Sec. 2. K.S.A. 75-2729 is hereby repealed.
39           Sec. 3. This act shall take effect and be in force from and after its
40       publication in the statute book.