Session of 1998
By Committee on Governmental Organization and Elections
            9             AN ACT concerning cities and counties; relating to the retailers' sales tax
10             and the use of revenue derived therefrom; amending K.S.A. 1997
11             Supp. 12-195 and repealing the existing section.
13       Be it enacted by the Legislature of the State of Kansas:
14           Section 1. K.S.A. 1997 Supp. 12-195 is hereby amended to read as
15       follows: 12-195. (a) Except as otherwise provided in K.S.A. 12-195b, 12-
16       1774 and 12-17,103, and amendments thereto, or subsection (b), no city
17       or county shall commit any of the funds or proceeds derived from a re-
18       tailers' sales tax as a guarantee for the payment of bonds issued by such
19       city or county.
20           (b) Any city or county which is the recipient of funds derived from a
21       local option sales tax pursuant to K.S.A. 12-187 et seq., and amendments
22       thereto, is hereby authorized to issue revenue bonds to provide for the
23       payment of all or any portion of the cost of public facilities or improve-
24       ments of in such city or county for which such city or county is authorized
25       pursuant to the constitution or laws of this state to issue general obligation
26       bonds and to pledge revenues received from countywide or city retailers'
27       sales taxes for the payment thereof. No such bonds shall be issued for the
28       payment of all or any portion of the cost of any facilities or improvements
29       to be used for commercial or retail purposes, except that such prohibition
30       shall not apply to revenue bonds issued for the payment of the cost of
31       constructing or improving a convention or exposition hall or center or
32       public auditorium. In the event the governing body of a city or county
33       proposes to issue such bonds, and the question of pledging the revenues
34       received from the countywide or city retailers' sales tax has not previously
35       been submitted to and approved by the voters of the city or county, such
36       proposition shall be published once each week for two consecutive weeks
37       in the official city or county newspaper, as the case requires. If, within
38       30 days after the last publication of the proposition, a petition is filed with
39       the county election officer signed by not less than 4% of the electors of
40       the city or county, as the case requires, who voted for the office of sec-
41       retary of state at the last preceding general election for such office re-
42       questing an election thereon, no such bonds shall be issued unless the
43       proposition is submitted to and approved by a majority of the voters of

HB 2842


  1       the city or county, as the case requires, voting at an election held thereon.
  2       Any such election shall be called and held in accordance with the provi-
  3       sions of K.S.A. 10-120, and amendments thereto, or in accordance with
  4       the provisions of the mail ballot election act.
  5           (1) Such bonds shall be authorized by ordinance of the governing
  6       body of such city or resolution of the governing body of such county. The
  7       bonds may be issued as registered bonds or coupon bonds, payable to
  8       bearer, and, if coupon bonds, may be registrable as to principal only or
  9       as to principal and interest, and may be made exchangeable for bonds of
10       another denomination or in another form. The bonds may be in such
11       form and denominations, may have such date or dates, may be stated to
12       mature at such time or times, may bear interest payable at such times
13       and at such rate or rates, may be payable at such places within or without
14       the state, may be subject to such terms of redemption in advance of
15       maturity at such prices, and may contain such terms and conditions, all
16       as the city or county shall determine. The bonds shall have all the qualities
17       of and shall be deemed to be negotiable instruments under the laws of
18       the state of Kansas. The authorizing ordinance or resolution may contain
19       any other terms, covenants and conditions that the city or county deems
20       reasonable and desirable, including without limitation those pertaining to
21       the maintenance of various funds and reserves, the nature and extent of
22       any security for payment of the bonds, the custody and application of the
23       proceeds of the bonds, the collection, transfer and disposition of sales tax
24       revenues, the investing of bond proceeds or any funds pledged to the
25       repayment of the bonds, and the rights, duties and obligations of the city
26       or county and the owners of the bonds.
27           (2) The authorizing ordinance or resolution may provide for the ex-
28       ecution of a trust indenture between the city or county and any financial
29       institution within or without the state of Kansas. The trust indenture may
30       contain any terms, covenants and conditions that are deemed desirable
31       by the city or county.
32           (3) Any authorizing ordinance or resolution and trust indenture re-
33       lating to the issuance of and security for the bonds shall constitute a
34       contract between the city or county and the owners of the bonds, which
35       contract, and all covenants, agreements and obligations therein, shall be
36       promptly performed in strict compliance with the terms and provisions
37       of such contract, and the covenants, agreements and obligations of the
38       city or county may be enforced by mandamus or other appropriate pro-
39       ceeding at law or in equity. The pledge of revenues made by the city or
40       county shall be valid and binding from the time when such pledge is made
41       and the revenues so pledged and thereafter received by the city or county
42       shall immediately be subject to the lien of such pledge without such phys-
43       ical delivery thereof or further act on the part of the city or county, and

HB 2842


  1       the lien of any such pledge shall be valid and binding as against all parties
  2       having claims of any kind against the issuer, irrespective of whether such
  3       parties have notice thereof. Neither the authorizing ordinance or reso-
  4       lution nor any other instrument by which a pledge is created need be
  5       filed or recorded except in the records of the city or county.
  6           (4) The revenue bonds may be sold in such manner, either at public
  7       or private sale, and upon such terms as the city or county shall determine
  8       to be reasonable, including sale at discount. It shall be plainly stated on
  9       the face of each such bond that it has been issued under this act, that the
10       bonds shall be special obligations of the city or county, payable solely and
11       only from the revenues pledged to the payment of the bonds and that in
12       no event, shall the bonds constitute an indebtedness of the state of Kansas
13       or the city or county for which the faith and credit of the state of Kansas
14       or city or county is pledged.
15           (5) Any bonds issued under the provisions of this section and the
16       interest thereon, shall be exempt from all taxes levied by the state of
17       Kansas, or any political or taxing subdivision thereof, except inheritance
18       taxes.
19           (6) Bonds may be issued for the purpose of refunding, either at ma-
20       turity or in advance of maturity, any bonds issued under this section. Such
21       refunding bonds may either be sold or delivered in exchange for the bonds
22       being refunded. If sold, the proceeds may either be applied to the pay-
23       ment of the bonds being refunded or deposited in trust and there main-
24       tained in cash or investments for the retirement of the bonds being re-
25       funded, as shall be specified by the city or county and the authorizing
26       ordinance or resolution or trust indenture securing such refunding bonds.
27       The authorizing ordinance or resolution or trust indenture securing the
28       refunding bonds may provide that the refunding bonds shall have the
29       same security for their payment as provided for the bonds being refunded.
30       Refunding bonds shall be sold and secured in accordance with the pro-
31       visions of this act pertaining to the sale and security of the bonds.
32           (7) Bonds issued under the provisions of this act shall be eligible to
33       secure the deposit of public funds under article 14 of chapter 9 of the
34       Kansas Statutes Annotated, and amendments thereto.
35           (8) Bonds issued under the provisions of this act shall be in addition
36       to and not subject to any statutory limitation of bonded indebtedness
37       imposed on such city or county.
38           Sec. 2. K.S.A. 1997 Supp. 12-195 is hereby repealed.
39           Sec. 3. This act shall take effect and be in force from and after its
40       publication in the Kansas register.