Session of 1998
Substitute for SENATE BILL No. 686
By Committee on Utilities
            9             AN ACT concerning certain refunds of rates and charges received for
10             reimbursement of ad valorem taxes in connection with the sale of nat-
11             ural gas; providing procedures therefor.
13       Be it enacted by the Legislature of the State of Kansas:
14           Section 1. (a) As used in this section:
15           (1) ``Refunds'' means refunds of rates and charges paid by a first seller
16       to an interstate pipeline or intrastate pipeline by the first seller, and any
17       interest thereon, prescribed by the federal energy regulatory commission
18       under the natural gas policy act for reimbursement of Kansas ad valorem
19       taxes in connection with the first sale of natural gas during the period
20       October 4, 1983, through June 28, 1988.
21           (2) ``Undisbursed refunds'' means refunds that have not been dis-
22       bursed by the interstate pipeline or intrastate pipeline, or have not been
23       disbursed within 30 days after receipt, due to a failure to locate the pur-
24       chasers of natural gas in connection with the first sale of natural gas during
25       the period October 4, 1983, through June 28, 1988.
26           (b) Any interstate or intrastate pipeline that has received refunds shall
27       remit all undisbursed refunds to the state treasurer as the state corpo-
28       ration commission determines may be required to pay under this act,
29       designating the amount of the undisbursed refunds which were received
30       from each first seller. Upon receipt of any such amount, the state trea-
31       surer shall deposit the entire amount into the natural gas refund fund
32       with a designation of the appropriate first seller as to each amount.
33           (c) Before July 1, 2000, any purchaser of natural gas during the period
34       October 4, 1983, through June 28, 1988, claiming a share of undisbursed
35       refunds, or a pipeline on behalf of the purchaser, may apply to the state
36       corporation commission for such refund. Upon submission of evidence
37       satisfactory to the commission that the purchaser paid the Kansas ad
38       valorem taxes during the period at issue and such purchaser is entitled to
39       the undisbursed refund and the amount thereof, the commission shall
40       cause the appropriate amount to be paid from the natural gas refund fund
41       with any applicable interest, and shall make the appropriate adjustment
42       to the account for the respective first seller.
43           (d) Not later than August 31, 2000, the state corporation commission

Sub. for SB 686


  1       shall cause all moneys that have been designated to a specific first seller
  2       in the natural gas refund fund and have not been expended for undis-
  3       bursed refunds pursuant to this section, to be paid to such first seller with
  4       appropriate interest.
  5           (e) There is hereby created in the state treasury the natural gas refund
  6       fund, an interest-bearing account of the state treasury, to be used to
  7       ensure that undisbursed refunds are only disbursed to the purchasers that
  8       actually incurred such costs during the relevant time period. Moneys
  9       credited to the natural gas refund fund shall be used only to pay refunds.
10       Expenditures from such fund shall be made in accordance with appro-
11       priation acts upon warrants of the director of accounts and reports issued
12       pursuant to vouchers approved by the chairperson of the state corporation
13       commission or a person designated by the chairperson.
14           (f) On September 1, 2000, the natural gas refund fund is hereby abol-
15       ished.
16           Sec. 2. This act shall take effect and be in force from and after its
17       publication in the Kansas register.