K.A.R. Agency 110 | Kan. Admin. Regs. Agency 110 — Department of Commerce

Article 1 Venture Capital Company Certification

Kan. Admin. Regs. § 110-1-1 Application process

(a) Application to become a certified Kansas venture capital company shall be made upon the application form furnished by the secretary of the department of commerce.

(b) Each application form shall be signed by an authorized officer or partner, and shall contain, as a minimum, the following information:

(1) the full, legal name of the company;

(2) the address of the applicant's principal office for the state;

(3) the names and addresses of the applicant's directors, officers, general partners and managing partners;

(4) a certified copy of the certificate of incorporation and articles of incorporation, or a certified copy of the certificate of formation of a limited partnership, or trust documents, or other evidence that the company is organized or existing under the laws of Kansas;

(5) adequate proof of a minimum level of equity capitalization of $1,500,000 as required by K.S.A. 1986 Supp. 74-8306(b), as amended by L. 1987, Chapter 320, Section 3, and the level of capitalization the company expects to qualify for tax credits through cash investment in the venture capital company within the current calendar year. The cash investment shall be in the form of money or the equivalent of money. "Equivalent of money," for the purpose of cash investment in a certified Kansas venture capital company, shall mean instruments which are immediately convertible into U.S. currency of a readily determinable amount and which have equal worth as U.S. currency including checks, cashier's checks, money orders, and certificates of deposit with a term of 90 days or less;

(6) the business history of the applicant; and

(7) a statement of assurances which provides that:

(A) the applicant's purpose is to encourage and assist in the creation, development, and expansion of Kansas businesses and to provide maximum opportunities for the employment of Kansans;

(B) the applicant will disclose to all investors that the state of Kansas can not be held liable for damages to an investor in a certified venture capital company as provided in K.S.A. 1986 Supp. 74-8311;

(C) the applicant will comply with all requirements of the Kansas venture capital company act, including the filing of annual reports.

(c) If an application is incomplete, the applicant, upon notification by the department, shall submit the required information within 10 working days. If the required information is not received within this time period, the application for certification shall be refused. Upon refusal of certification, a subsequent application for certification may be submitted.

(Authorized and implementing K.S.A. 1986 Supp. 74-8305, effective May 1, 1987, amended, T-88-53, Jan. 1, 1988; amended May 1, 1988.)

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Kan. Admin. Regs. § 110-1-2 Annual report

(a) To determine program compliance and status for continuing certification, each certified Kansas venture capital company shall report annually to the secretary on forms provided by the department. Information reported shall include as a minimum:

(1) the name, address, and taxpayer identification number of each investor who has invested in that company and amounts invested by each;

(2) the name, address and taxpayer identification number of each taxpayer who acquires by transfer the income tax credits from investors exempt from income taxation;

(3) the name and location of each business in which the company has invested and the type and amount of investment. The names of the business owners shall be provided if required to determine their qualification for equity or tax credit purposes;

(4) the number of jobs created or preserved in each business; and

(5) a certification that all businesses in which the company has invested are eligible in accordance with K.S.A. 1986 Supp. 74-8307(d), as amended by L. 1987, Chapter 319, Section 3, if required to determine qualification for equity or tax credit purposes.

(b) The cost of the annual review for each Kansas venture capital company shall be $100. The fee shall be paid by the Kansas venture capital company upon submission of the annual report to the secretary.

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History

History: (Authorized by and implementing K.S.A. 1986 Supp. 74-8305; effective May 1, 1987; amended, T-88-53, Jan. 1, 1988; amended May 1, 1988.)

Article 2 Local Seed Capital Pool Certification

Kan. Admin. Regs. § 110-2-1 Application process

(a) Application to become a certified Kansas local seed capital pool shall be made upon the application form furnished by the secretary of the department of commerce.

(b) Each application form shall be signed by an authorized officer or partner, and shall contain, as a minimum, the following information:

(1) the full, legal name of the company;

(2) the address of the applicant's principal office in the state;

(3) the names and addresses of the applicant's directors, officers, general partners or managing partners;

(4) a certified copy of the certificate of incorporation and articles of incorporation, or a certified copy of the certificate of formation of partnership;

(5) adequate proof of a minimum level of $200,000 capitalization as required by L. 1987, Chapter 365, Section 2(b) and the level of capitalization the company expects to qualify for tax credits;

(6) the source of money necessary to administer and operate the pool;

(7) the business history of the applicant; and

(8) a statement of assurances which provides that:

(A) the applicant's purpose is to encourage and assist in the creation, development, and expansion of Kansas businesses and to provide maximum opportunities for the employment of Kansans by making seed capital available to Kansas businesses;

(B) the funds invested by the local seed capital pool will be invested at 100 percent in Kansas businesses;

(D) the public funds invested in a local seed capital pool will have a senior position to any private cash investment and that each cash dollar of public investment will be matched by at least two dollars of private cash investment; and

(E) the applicant will disclose to all investors that the state of Kansas can not be held liable for damages to an investor in a local seed capital pool, as provided in L. 1987, Chapter 365, Section 6.

(Authorized and implementing L. 1987, Ch. 365, Sec. 2; effective, T-88-53, Jan. 1, 1988; effective May 1, 1988.)

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Kan. Admin. Regs. § 110-2-2 Annual report

(a) To determine program compliance and status for continuing certification, each certified Kansas local seed capital pool shall report annually to the secretary on forms provided by the department. Information reported shall include, as a minimum:

(1) the name, address, and taxpayer identification number of each taxpayer who has invested in the pool and amounts invested by each;

(2) the name and location of each business in which the pool has invested and amount and use of the investment; and

(3) an estimate of the number of jobs created or preserved in each business.

(b) The cost of the annual review for each certified Kansas local seed capital pool shall be $100. The fee shall be paid by the seed capital pool upon submission of the annual report to the secretary.

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History

History: (Authorized by and implementing L. 1987, Ch. 365, Sec. 2; effective, T-88-53, Jan. 1, 1988; effective May 1, 1988.)

Article 3 Kansas Partnership Fund Program

Kan. Admin. Regs. § 110-3-1 Application criteria

Each application for a loan through the Kansas partnership fund shall be reviewed and evaluated by the secretary of commerce. Unless waived by the secretary, each application shall provide sufficient information to document:

(a) The applicant's need for economic development;

(b) the number of new, permanent, private sector jobs to be created by the project;

(c) the projected impact of resulting business activity on the area, including new tax revenues to the borrower, and the availability of that revenue to help repay the program loan;

(d) the estimated cost based on an engineering or other reliable estimate of the complete project to be funded by the loan;

(e) the basis of the applicant's need for a loan from the State, including evidence that other financing options have been investigated and either are not readily available or will not cover total project costs;

(f) the availability of other funds to adequately finance any related improvement or service incidental to the project, and to finance any part of the project costs not covered by the loan;

(g) the applicant's total current and projected future debt obligations;

(h) the project's consistency with the applicant's comprehensive plans and with the applicant's five-year capital improvement plans; and

(i) any other information deemed pertinent by the secretary.

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History

History: (Authorized by and implementing L. 1988, Ch. 394, Sec. 2; effective Feb. 27, 1989.)

Kan. Admin. Regs. § 110-3-2 Eligible applicants

(a) Any city or county government with legal jurisdiction over the site of a proposed infrastructure improvement, or with a properly executed interlocal agreement in effect which covers the site of a proposed infrastructure improvement pursuant to subsection (b) may submit an application for a loan from the Kansas partnership fund.

(b) Any other local unit of government may request the county government to make an application on behalf of the local unit, subject to the following provisions:

(1) The county government shall have a properly executed interlocal agreement in effect which covers the site of the proposed infrastructure improvements.

(2) The county government shall be considered the borrower and shall be held accountable for the project accordingly.

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History

History: (Authorized by and implementing L. 1988, Ch. 394, Sec. 2; effective Feb. 27, 1989.)

Kan. Admin. Regs. § 110-3-3 Eligible projects

(a) Each project eligible for financing under the Kansas partnership fund program shall:

(1) Serve a specific business on a specific site;

(2) serve a demonstrable public purpose; and

(3) be located on public property, public easements, public right-of-ways, or shall be a project to extend any public utility service.

(b) Eligible project costs may include reasonable construction, labor, materials, engineering, architectural, land acquisition, legal and administrative costs related directly to the project.

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History

History: (Authorized by and implementing L. 1988, Ch. 394, Sec. 2; effective Feb. 27, 1989.)

Kan. Admin. Regs. § 110-3-4 Ineligible projects

The following types of projects shall be considered ineligible for the Kansas partnership fund program:

(a) Any project which the secretary of commerce determines would cause a significant adverse competitive disadvantage to an existing enterprise in Kansas;

(b) any project which includes the relocation of an enterprise from one location in the state to another, unless approved in advance by official action of both the county commission and the city or other municipality which would be losing the enterprise; or

(c) any project directly related to a facility where games of chance are played for money or other stakes, or where wagering occurs.

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History

History: (Authorized by and implementing L. 1988, Ch. 394, Sec. 2; effective Feb. 27, 1989.)

Kan. Admin. Regs. § 110-3-5 Terms of the program

Except as otherwise provided in a loan agreement, the Kansas partnership fund revolving loan fund program shall make loans available under the following terms.

(a) Program loans shall not exceed the total cost of the project.

(b) Except when waived by the secretary, a local unit of government shall not have more than $2,000,000 in total program loans outstanding at any one time.

(c) The term of program loans shall not exceed the expected life of the financed public improvement or improvements as determined by a certified professional engineer, or 15 years, whichever is less. An extended loan term beyond 15 years may be authorized by the secretary in unusual cases where a special need is demonstrated. However, any loans funded in whole or in part with bond proceeds shall be subject to the terms and conditions provided for in the bond indentures.

(d) The interest rate for new loans shall be reviewed and established annually by the secretary of commerce on January 1 of each year. The interest rate for new loans may be changed by the secretary whenever bonds are issued by the Kansas development finance authority for the purposes of the Kansas partnership fund.

(e) All loan proceeds shall be made available to the borrower incrementally on a receipts-only basis. Whenever a loan is approved, an encumbrance shall be issued for the full amount of the loan. This amount shall be set aside and then may be drawn down as eligible project cost receipts are submitted and approved. Interest shall only be due on loan amounts actually received. Any interest earnings on encumbered funds which have been set aside shall be credited to the partnership fund or designated for repayment of bonds issued for this program as needed.

(f) Any costs incurred for improvements beyond the necessary scope of a single purpose project, or associated with activities in addition to the single purpose project, shall not be considered allowable expenses under this program. In multi-purpose projects, only costs that are documented by a certified professional engineer as necessary and appropriate for an eligible single purpose project shall be considered allowable expenses under this program.

(g) The first payment of loan principal and interest shall become due at a time coordinated with the loan recipient's budget cycle, but not later than 18 months after receipt of the first loan disbursement.

(h) Payments shall be due thereafter on at least a semi-annual basis, and the payments may be adjusted so that the total of principal and interest shall be in approximately equal amounts throughout the life of the loan.

(i) A delinquency charge of 1.5% per month shall be applied to any payments more than 30 days overdue.

(j) Each borrower shall have the right to prepay loan obligations in accordance with the terms of the loan contract.

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History

History: (Authorized by and implementing L. 1988, Ch. 394, Sec. 2; effective Feb. 27, 1989.)

Kan. Admin. Regs. § 110-3-6 Conditions of final loan approval

(a) Each prospective recipient of a Kansas partnership fund loan shall provide the following additional information before final loan approval is granted:

(1) Documentation of a firm financial commitment to locate or expand business operations by the business which would directly benefit from the proposed public improvements;

(2) evidence of local awareness of the project application, including public hearings;

(3) a description of the applicant's control of project site, including any leases, easements, covenants, or encumbrances which may affect the project;

(4) evidence of the adequacy and reliability of the dedicated source of repayment for loan principal and interest;

(5) evidence of the applicant's ability to administer the project and to comply with state loan requirements;

(6) evidence of the applicant's ability to adequately fund necessary maintenance of the improvements; and

(7) evidence of the project's compliance with applicable state laws, rules and regulations.

(b) Any information provided by the applicant or available from other sources may be considered by the secretary in granting final loan approval.

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History

History: (Authorized by and implementing L. 1988, Ch. 394, Sec. 2; effective Feb. 27, 1989.)

Kan. Admin. Regs. § 110-3-7 Distribution of funds by congressional district

Distribution of loans by congressional district shall be considered by the secretary in awarding loans through the Kansas partnership fund program.

(a) During the first three quarters of each fiscal year, loans shall be awarded in a manner that equalizes their distribution among congressional districts to the extent deemed practicable by the secretary.

(b) Any loan funds still available in the fourth quarter of each fiscal year may be awarded to an applicant in any part of the state, regardless of congressional district.

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History

History: (Authorized by and implementing L. 1988, Ch. 394, Sec. 2; effective Feb. 27, 1989.)

Kan. Admin. Regs. § 110-3-8 Program fees and administration

(a) Fees deemed necessary to help offset the costs of administering the Kansas partnership fund program may be established by the secretary, including fees or service charges for:

(1) Application reviews;

(2) loan issuance;

(3) loan audits;

(4) on-site inspections; and

(5) other similar activities.

(b) Any fees collected under subsection (a) may be used to help offset the costs of administering this program.

(c) Up to 5% of monies deposited in the Kansas partnership fund may be used to offset the costs of administering the program.

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History

History: (Authorized by and implementing L. 1988, Ch. 394, Sec. 2; effective Feb. 27, 1989.)

Kan. Admin. Regs. § 110-3-9 Terms of suspension

(a) If a Kansas partnership fund loan recipient or pending loan recipient has failed to comply with the loan award stipulations, standards, or conditions, the following actions may be taken by the secretary, after providing written notice:

(1) The loan may be suspended in whole or in part and any further payments withheld; and

(2) the loan recipient or pending loan recipient may be prohibited from incurring additional obligations for loan funds. Only necessary and proper costs, as determined by the secretary of commerce, which could not reasonably have been avoided during the suspension period shall be allowable.

(b) Within 30 days from the date of the notice, the loan recipient or pending loan recipient shall take corrective action and provide a detailed written explanation to the secretary of commerce which describes the corrective actions taken.

(c) Within 21 calendar days of receiving the written explanation, the explanation shall be reviewed by the secretary, and a written response shall be provided to the loan recipient or pending loan recipient indicating that:

(1) Sufficient corrective action has been taken; or

(2) formal loan termination procedures will be taken under the terms of K.A.R. 110-3-10.

(e) Suspension shall be considered a temporary action pending either corrective action or termination, and therefore shall not be considered a "final" action with any right of appeal.

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History

History: (Authorized by and implementing L. 1988, Ch. 394, Sec. 2; effective Feb. 27, 1989.)

Kan. Admin. Regs. § 110-3-10 Termination procedures

(a) Any Kansas partnership fund loan agreement may be terminated by the secretary in whole or in part at any time if a loan recipient or pending loan recipient fails in a material way to comply with the terms and conditions of a loan or to take adequate corrective actions while under a suspension.

(1) Written notice of the proposed termination shall be provided by the secretary which shall include:

(A) Notification that the loan will be terminated;

(B) an explanation of the reason or reasons for termination proceedings;

(D) an explanation of the appeal procedure.

(2) The loan recipient or pending loan recipient shall have 30 calendar days from the date of the notice of proposed termination to respond in writing to the secretary before a loan is actually terminated. The response shall set forth the proposed actions to be taken by the loan recipient or pending loan recipient to prevent the proposed termination action.

(3) Within 21 calendar days following receipt of a written response or the expiration of the 30-day response time, whichever occurs first, the recipient or prospective recipient shall be notified, in writing, as to whether the secretary will proceed with termination and of the basis for this decision.

(4) Within 30 calendar days of the date of the decision, the loan recipient or pending loan recipient may file an appeal, which shall be in the form of a written resolution to the secretary of commerce adopted by the appropriate governing body.

(5) Upon the expiration of the 30-day period provided in paragraph (4):

(A) the loan may be terminated by the secretary if no additional appeal has been made; or

(B) the appeal may be reviewed and a final decision may be issued by the secretary on termination.

(b) A loan may be terminated for convenience when the secretary of commerce and the loan recipient or pending loan recipient mutually agree, in writing, that any further expenditure of loan funds is not warranted or will not be beneficial for the designated project. In such cases, the loan may be terminated in whole or in part, and the following conditions shall apply.

(1) The loan recipient or pending loan recipient shall not incur any new obligations for the loan funds after the effective date of termination and shall cancel as many outstanding obligations as possible.

(2) Full credit shall be allowed for any non-cancellable obligations properly incurred prior to termination.

(3) An agreement between the secretary of commerce and the loan recipient or pending loan recipient shall be reached regarding:

(A) the effective date of termination;

(B) in the event of partial termination, the portion to be terminated; and

(c) Upon formal termination of any loan, an encumbrance cancellation shall be issued by the secretary in the amount of any unused loan funds.

(d) The loan recipient or pending loan recipient shall be responsible for all necessary and appropriate actions to allow the secretary of commerce to properly document formal loan termination.

(e) Upon termination, the loan may be foreclosed and any loan principal and accrued interest may be declared to be payable on demand.

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History

History: (Authorized by and implementing L. 1988, Ch. 394, Sec. 2; effective Feb. 27, 1989.)

Kan. Admin. Regs. § 110-3-11 Repayment assurances

(a) Any applicant may be required by the secretary to levy an annual property tax sufficient to pay the loan principal and interest, which annually may be reduced by non-property tax revenue sources that may be lawfully available for loan repayment.

(b) Delinquent loan repayments shall be collected by deducting the delinquent amount from payments made by state agencies to the local governmental entity that is delinquent in its loan repayment.

(c) If a loan recipient is more than six months delinquent with any scheduled loan repayment, foreclosure proceedings shall be initiated by the secretary in accordance with the terms of any loan contract made under this program. Foreclosure actions may include the seizure of any public improvements or property paid for with partnership fund loan proceeds. All loan amounts and accrued interest outstanding may be declared to be payable on demand.

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History

History: (Authorized by and implementing L. 1988, Ch. 394, Sec. 2-3; effective Feb. 27, 1989.)

Article 4 Investments in Major Projects and Comprehensive Training (IMPACT) Act

Kan. Admin. Regs. § 110-4-1 Definitions

As used in these regulations and for purposes of administering the IMPACT act, the following terms shall have the following meanings: (a) "Department" means department of commerce.

(b) "Existing job" means a job of an employer meeting the following criteria:

(1) Has the same or similar description, or involves performing the same or a similar function as that for a job being created by that employer; and

(2) was filled or in use within the 18 months before the date of filing an application with the secretary for funding from the IMPACT program services fund, unless the job was lost due to an act of God and the secretary finds that the IMPACT program or project will be a major factor for the Kansas basic enterprise to remain in Kansas.

(c) "Maximum funding amount" means the maximum dollar amount for which a qualified project would be eligible under the IMPACT act, assuming that sufficient funds exist to fund the maximum dollar amount permitted for all qualified projects as determined by the secretary according to K.A.R. 110-4-2(c).

(d) "MPI" means major project investment as defined in K.S.A. 74-50,103 and amendments thereto.

(e) "Project cost" for a qualified project means the total of program costs and the cost of program services as these terms are defined by K.S.A. 74-50,103 and amendments thereto.

(f) "Qualified project" means any project described in an application that has been determined by the secretary to be complete, in compliance with the funding limitations set forth in the IMPACT act, and qualified for funding from the IMPACT program services fund.

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History

History: (Authorized by and implementing K.S.A. 2009 Supp. 74-50,104; effective, T-110-3-27-92, March 27, 1992; effective, T-110-7-23-92, July 23, 1992; effective Sept. 8, 1992; amended Aug. 29, 1997; amended, T-110-5-31-01, May 31, 2001; amended Sept. 21, 2001; amended Jan. 28, 2011.)

Kan. Admin. Regs. § 110-4-2 Review standards and priorities for approval of proposed agreements; limits on program costs and on project and program size

(a) Each proposal for an agreement concerning a SKILL project or a combined SKILL project and financial assistance through an MPI shall be submitted by an employer to the secretary. Each proposal for an agreement concerning only financial assistance through an MPI shall be submitted by an employer to the secretary. Each proposal shall be submitted as an application on a form provided by the secretary. Each proposal shall include the following, as applicable:

(1) General information, as follows:

(A) The project start and end dates;

(B) the employer's legal name;

(C) the employer's code designation according to the "North American industry classification system" (NAICS), as established by the executive office of the president, office of management and budget, dated 2007;

(D) a description of the employer's business operation or industry;

(E) the employer's federal taxpayer identification number;

(F) the name and title of the employer's designated contact person;

(G) the electronic mail address of the employer's contact person;

(H) the employer's mailing address;

(I) the address of the project facility;

(J) the phone number and fax number of the contact person;

(K) the total number of existing jobs in the state, including annual average wage;

(L) the estimated capital investment;

(M) the projected number of new jobs and retrained jobs, including annual average wage;

(N) the performance percentage of the new and retrained jobs;

(O) a description of the type of training;

(P) a summary of the benefits package offered by a company; and

(Q) the anticipated hiring schedule for all positions;

(2) a description of the company's business operations, including the following:

(A) A company overview, including a brief company history and current information;

(B) a summary of the financial condition of the company; and

(3) if a company will be using a Kansas educational institution for direct services, the following information for each participating institution:

(A) The name of the educational institution;

(B) the educational institution's address;

(D) the phone number and fax number of the contact person;

(E) the electronic mail address of the contact person;

(F) the federal identification number;

(4) for any proposal that includes a SKILL project, information relating to the new jobs or retrained jobs, as follows:

(A) A summary of the type of training or instruction to be provided to each trainee;

(B) the number of hours of instruction for each trainee by course area or title;

(D) the costs of adult basic education and job-related instruction;

(E) the costs of vocational and skill-assessment services and testing;

(F) the costs for lease of training equipment, including the costs of installation;

(G) the costs to the educational institution for purchase of training equipment, including the costs of installation;

(H) the costs of training materials and supplies;

(I) the costs of services with educational institutions, federal, state, or local agencies, vendors, or consultants;

(J) the costs of contractual or professional services;

(K) the training curriculum planning and development costs;

(L) the costs of textbooks, manuals, audiovisual materials, or other training aids;

(M) the travel expenses of trainers or trainees;

(N) the costs of temporary training facilities;

(O) the amount, if any, of tuition, student fees, or special charges included in the project costs;

(P) the total estimated project costs;

(Q) the amount of project costs proposed to be paid by the employer, by the educational institution, and by federal, state, or other public or private grants;

(R) the amount of project costs requested to be paid from the IMPACT program services fund; and

(5) for any proposal that includes a request for financial assistance through an MPI, information relating to the financial assistance requested as follows:

(A) An itemization of the business costs to be paid through an MPI, and the estimates of these business costs;

(B) background information relating to the undertaking and an explanation of how the financial assistance provided through an MPI will contribute to the relocation of the employer in the state; and

(C) if the proposal includes only a request for financial assistance through an MPI, an explanation of the training or education programs to be undertaken or funded by the employer for its employees each year during the term of the agreement, with evidence demonstrating that the employer will meet the minimum training and education requirement in K.S.A. 74-50,106(d)(1), and amendments thereto; and

(D) for all proposals, any other information deemed necessary by the secretary.

(b) Each application shall be reviewed by the secretary for completeness and compliance with the funding limitations in the IMPACT act. Additional data may be requested by the secretary to verify the accuracy and completeness of the information in an application. The review of each application shall be completed by the secretary within 30 days of the date a complete application is filed.

(c)(1) The best method of funding the qualified projects shall be determined by the secretary and the funding requirements of part or all of two or more qualified projects may be pooled to facilitate the issuance of bonds by the Kansas development finance authority. One or more qualified projects may be funded from amounts on deposit or anticipated to be on deposit in the IMPACT program services fund that are not required to be used to pay program costs for other qualified projects.

(2) The maximum funding amount for any qualified project may be funded in more than one increment as may be necessary to accommodate the needs, funding resources, and limitations of the IMPACT program. However, the sum of these increments shall not exceed the maximum funding amount for the qualified project. The determinations by the secretary as to whether a qualified project will be funded in increments and the amount of these increments shall be made on the basis of the considerations listed in subsection (d).

(d) The following factors shall be used to determine whether a qualified project should be funded and the amount of the funding. If two or more qualified projects compete for limited funds, these same factors shall be applied to determine the level of funding for each project:

(1) The per capita cost of training expenses to be funded from the IMPACT program services fund;

(2) the amount of funds used to pay project costs from sources other than funds from the IMPACT program services fund;

(3) the local economic needs and the impact of the project, including current local employment conditions, resultant new economic activity, the project schedule, leveraging of other resources, beneficial impact on the tax base and project feasibility, as well as the probability that the project will accomplish the projected benefits;

(4) the quality of jobs to be created, with priority given to those full-time jobs that have a higher wage scale, higher benefit levels, a low turnover rate, an opportunity for career development or advancement, or other related factors;

(5) the extent to which the project is being coordinated with other projects of that applicant or other applicants to be funded from the IMPACT program services fund. Priority shall be given to projects that are able to share training facilities, instructors, training equipment, and other program services;

(6) the extent to which the project or components of the project do not duplicate existing training resources;

(7) the extent to which the project utilizes funds in the most efficient and effective manner to train employees. Each proposal that includes a SKILL project shall demonstrate that a reasonable effort has been made to investigate alternate training methods and has selected the most efficient and effective method of training;

(8) the extent to which funding from the IMPACT program services fund is essential to the training of the employees, the creation of the new jobs, or both;

(9) the extent to which the employer requesting assistance can continue in business at the levels necessary to retain the new jobs created for the periods indicated in its application if provided with the requested assistance;

(10) the extent to which the employer intends to continue its operations in Kansas for the periods indicated in its application;

(11) if an MPI is requested, the extent to which the project utilizes funds in the most efficient and effective manner to defray business costs;

(12) the extent to which the business costs to be defrayed and paid through an MPI are directly related to the creation of new jobs in Kansas; and

(13) the extent to which the financial assistance provided through an MPI will confer benefits on the state, the community, local educational institutions or other persons or entities in addition to the benefits it will confer on the employer.

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History

History: (Authorized by K.S.A. 2009 Supp. 74-50,104, 74-50,106; implementing K.S.A. 2009 Supp. 74-50,104, 74-50,105, 74-50,106; effective, T-110-3-27-92, March 27, 1992; effective, T-110-7-23-92, July 23, 1992; effective Sept. 8, 1992; amended Aug. 29, 1997; amended Jan. 28, 2011.)

Kan. Admin. Regs. § 110-4-3 Limit on maximum funding amount

The limitation on program costs specified in K.S.A. 74-50,104(b), and amendments thereto, of the IMPACT act shall limit only the maximum funding amount for each qualified project and shall not limit the amount of project costs that are to be paid from sources other than the IMPACT program services fund.

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History

History: (Authorized by K.S.A. 2009 Supp. 74-50,104; implementing K.S.A. 2009 Supp. 74-50,104, 74-50,105; effective, T-110-3-27-92, March 27, 1992; effective, T-110-7-23-92, July 23, 1992; effective Sept. 8, 1992; amended Aug. 29, 1997; amended Jan. 28, 2011.)

Kan. Admin. Regs. § 110-4-4 Enforcement of agreements by the secretary

Each agreement, as defined by K.S.A. 74-50,103 and amendments thereto, shall be enforced by the secretary. In order to facilitate enforcement by the secretary, each agreement shall include the department as a party to the agreement with enforcement rights.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2009 Supp. 74-50,104; implementing K.S.A. 2009 Supp. 74-50,104, 74-50,105; effective, T-110-3-27-92, March 27, 1992; effective, T-110-7-23-92, July 23, 1992; effective Sept. 8, 1992; amended Aug. 29, 1997; amended Jan. 28, 2011.)

Kan. Admin. Regs. § 110-4-5 Compliance with K

S.A. 74-50,106(d), and amendments thereto. (a) Each employer receiving financial assistance through an MPI shall comply with K.S.A. 74-50,106(d) and amendments thereto. For purposes of complying with K.S.A. 74-50,106(d)(1) and amendments thereto, the employer shall make an investment in training and education of the employer's employees in each of the employer's fiscal years during the term of the agreement.

(b) Training and education expenditures that qualify for compliance with K.S.A. 74-50,106(d)(1), and amendments thereto, shall include those expenditures made for all necessary and incidental costs of providing the following:

(1) New jobs training, including training development costs;

(2) adult basic education and job-related instruction;

(3) vocational and skill-assessment services and testing;

(4) training materials and supplies;

(5) subcontracted services with educational institutions, private colleges or universities, or federal, state, or local agencies;

(6) contractual or professional services; and

(7) wages paid to persons receiving education or training, but only for the periods during which the person is receiving classroom training.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2009 Supp. 74-50,104 and 74-50,106; effective Aug. 29, 1997; amended Jan. 28, 2011.)

Article 5 Kansas Enterprise Zone Act

Kan. Admin. Regs. § 110-5-1 Definitions

As used in these regulations, and for the purposes of administering the Kansas enterprise zone act, the following definitions apply:

(a) "City" means the governing body of an incorporated Kansas municipality.

(b) "County" means the county board of commissioners.

(d) "Local" means within the jurisdiction of a city.

(e) "Multi-county unit" means two or more counties making a united application for designation as a nonmetropolitan region.

(f) "Region" or "regional" means within the combined jurisdiction of all applicants, the minimum region being a single county.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by L. 1992, Chapter 202, Section 7; implementing L. 1992, Chapter 202, Section 4(a); effective, T-110-8-26-92, Aug. 26, 1992; effective Dec. 21, 1992.)

Kan. Admin. Regs. § 110-5-2 Eligible applicants

Each applicant for designation as a nonmetropolitan region shall be:

(a) a single county; or

(b) a multi-county unit.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by L. 1992, Chapter 202, Section 7; implementing L. 1992, Chapter 202, Section 4(a)(1); effective, T-110-8-26-92, Aug. 26, 1992; effective Dec. 21, 1992.)

Kan. Admin. Regs. § 110-5-3 Required documentation

Each application for designation of a nonmetropolitan region shall include:

(a) the name, title, address, and telephone number of a primary contact person for each county making application;

(b) the name, title, address, and telephone number of a primary contact person for the qualifying regional economic development organization;

(c) the name, title, address, and telephone number of a primary contact person with designated responsibility to make the required annual report to the secretary of commerce and housing as required by L. 1992, Chapter 202, Section 6(a);

(d) a list of all incorporated cities within the jurisdiction of each county making application showing the population, according to the most current census data available, of each city;

(e) a resolution by each county represented in the application stating that a regional economic development organization has been established which has a membership representative of:

(1) all geographic areas of the county; and

(2) the manufacturing businesses, non-manufacturing businesses, and retail businesses in the county;

(f) evidence of the regional economic development organization which,

(1) if the organization is incorporated, shall include:

(A) a certified copy of the articles of incorporation; and

(B) a certified copy of the by-laws; or

(2) if the organization is not incorporated, shall include:

(A) a certified copy of the statement of purpose of the organization; and

(B) a certified copy of the operating guidelines of the organization or other applicable and appropriate documentation acceptable to the secretary;

(g) a certified copy of a regional strategic plan which shall:

(1) have been developed or updated not more than three years prior to the time of submission;

(2) provide a verifiable statement of assurance that the plan was developed with broad-based citizen participation and input;

(3) have specific goals for regional economic development;

(4) have detailed implementation strategies for each identified goal;

(5) have appropriate criteria to determine the effectiveness of each strategy in attaining the stated goals;

(6) have provisions for monitoring the plan on a regular, on-going basis; and

(7) have provisions for reassessing, reevaluating, and updating the plan at intervals not to exceed three years;

(h) a resolution by each county making application which shall:

(1) state support for the scope of activities identified in the regional strategic plan;

(2) state all regional incentives to be offered;

(3) state all county-wide incentives to be offered;

(4) state a commitment to participate in offering all stated incentives;

(5) give a specific, detailed plan for notifying all eligible businesses in the county of the regional and county-wide incentives available; and

(6) request the designation and approval of a nonmetropolitan region; and

(i) a resolution from each city within the jurisdiction of each applicant having a population of 2,000 or more, according to the most current census data available, which shall:

(1) state support for the scope of activities identified in the regional strategic plan;

(2) state all regional and county-wide incentives to be offered;

(3) state all local incentives to be offered;

(4) state a commitment to participate in offering all stated incentives;

(5) give a specific, detailed plan for notifying all eligible businesses in the city of the regional, county-wide, and local incentives available;

(6) state consent to participate with the county, or counties, in a nonmetropolitan region; and

(7) request the designation and approval of a nonmetropolitan region.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by L. 1992, chapter 202, Section 7; implementing L. 1992, Chapter 202, Section 4; effective, T-110-8-26-92, Aug. 26, 1992; effective Dec. 21, 1992.)

Kan. Admin. Regs. § 110-5-4 Quarterly report

On or before January 15, April 15, July 15, and October 15 of each year, the Kansas department of revenue shall be given a list of nonmetropolitan regions including those which have been approved during the prior calendar quarter by the Kansas secretary of commerce and housing.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by L. 1992, Chapter 202, Section 7; implementing L. 1992, Chapter 202, Section 5; effective, T-110-8-26-92, Aug. 26, 1992; effective Dec. 21, 1992.)

Kan. Admin. Regs. § 110-5-5 Term of designation

Upon approval of the application, a nonmetropolitan region shall be designated for a period of not more than five years. The applicant may apply for renewal of the designation within 60 days prior to the date of expiration.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by L. 1992, Chapter 202, Section 7; implementing L. 1992, Chapter 202, Section 4(a); effective, T-110-8-26-92, Aug. 26, 1992; effective Dec. 21, 1992.)

Kan. Admin. Regs. § 110-5-6 Annual report requirements

Each annual report submitted to the secretary pursuant to L. 1992, Chapter 202, Section 6, shall include:

(a) a list of regional incentives for economic development available in the region during the prior calendar year;

(b) a list for each designated county of any additional county-wide incentives for economic development available in the county during the prior calendar year;

(c) a list for each city within the jurisdiction of each designated county of any additional local incentives for economic development available in the city during the prior calendar year;

(d) the usage of each regional, county-wide, and local incentive for economic development made available in such region during the prior calendar year and showing:

(1) a description of each regional, county-wide, and local incentive;

(2) the number of times each regional, county-wide, and local incentive was used; and

(3) the fiscal impact of each regional, county-wide, and local incentive to the authorizing governing body; and

(e) any other information as required by the secretary.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by L. 1992, Chapter 202, Section 7; implementing L. 1992, Chapter 202, Section 6(a); effective, T-110-8-26-92, Aug. 26, 1992; effective Dec. 21, 1992.)

Article 6 High Performance Incentive Program

Kan. Admin. Regs. § 110-6-1 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1999 Supp. 74-50,131, as amended by L. 2000, ch. 157, sec. 8; effective, T-110-8-17-93, Aug. 17, 1993; effective Nov. 15, 1993; amended, T-110-4-25-00, April 25, 2000; amended Feb. 23, 2001; revoked Sept. 13, 2013.)

Kan. Admin. Regs. § 110-6-1a Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1999 Supp. 74-50,115, as amended by L. 2000, ch. 157, sec. 6 and K.S.A. 74-50,131, as amended by L. 2000, ch. 157, sec. 8; implementing K.S.A. 1999 Supp. 74-50,115, as amended by L. 2000, ch. 157, sec. 6, K.S.A. 74-50,131, as amended by L. 2000, ch. 157, sec. 8, and K.S.A. 1999 Supp. 74-50,132; effective, T-110-4-25-00, April 25, 2000; effective Feb. 23, 2001; revoked Sept. 13, 2013.)

Kan. Admin. Regs. § 110-6-2 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1999 Supp. 74-30,131, as amended by L. 2000, ch. 157, sec. 8; effective, T-110-8-17-93, Aug. 17, 1993; effective Nov. 15, 1993; amended, T-110-4-25-00, April 25, 2000; amended Feb. 23, 2001; revoked Sept. 13, 2013.)

Kan. Admin. Regs. § 110-6-3 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1999 Supp. 74-50,131, as amended by L. 2000, ch. 157, sec. 8; implementing K.S.A. 1999 Supp. 74-50,131, as amended by L. 2000, ch. 157, sec. 8 and K.S.A. 1999 Supp. 74-50,132; effective, T-110-8-17-93, Aug. 17, 1993; effective Nov. 15, 1993; amended, T-110-4-25-00, April 25, 2000; amended Feb. 23, 2001; revoked Sept. 13, 2013.)

Kan. Admin. Regs. § 110-6-4 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1999 Supp. 74-50,131, as amended by L. 2000, ch. 157, sec. 8; implementing K.S.A. 1999 Supp. 74-50,131, as amended by L. 2000, ch. 157, sec. 8 and K.S.A. 1999 Supp. 74-50,133; effective, T-110-8-17-93, Aug. 17, 1993; effective Nov. 15, 1993; amended, T-110-4-25-00, April 25, 2000; amended Feb. 23, 2001; revoked Sept. 13, 2013.)

Kan. Admin. Regs. § 110-6-5 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1999 Supp. 74-50,131, as amended by L. 2000, ch. 157, sec. 8; effective, T-110-8-17-93, Aug. 17, 1993; effective Nov. 15, 1993; amended, T-110-4-25-00, April 25, 2000; amended Feb. 23, 2001; revoked Sept. 13, 2013.)

Kan. Admin. Regs. § 110-6-6 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing 1993 SB 73, section 1 (b); effective, T-110-8-17-93, Aug. 17, 1993; effective Nov. 15, 1993; revoked Sept. 13, 2013.)

Kan. Admin. Regs. § 110-6-7 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing L. 1993, Chap. 172, Sec. 1; effective Nov. 15, 1993; revoked Sept. 13, 2013.)

Kan. Admin. Regs. § 110-6-8 Definitions

As used in this article and for purposes of administering HPIP, the following terms shall have the following meanings:

(a) "Alternative wage standard" means one and one-half times the state average wage and is updated annually on the department's web site, based on data maintained by the Kansas secretary of labor. An alternative wage standard may be used only after subtracting all employees with five percent equity in the business from all internal wage calculations, as provided by K.S.A. 74-50,131(e) and amendments thereto.

(b) "Applicant" means a legal entity seeking to certify a qualified firm through the HPIP application process.

(c) "Average internal wage" means the wage computed for the employees attached to a worksite and shall be calculated by one of the following methods:

(1) Dividing the average headcount of part-time plus full-time employees at the worksite as reported on the "quarterly wage report and unemployment tax return" or "multiple worksite report" for the measurement period into total payroll costs that have been paid over the same measurement period; or

(2) dividing the number of FTE employees into total payroll costs that have been paid over the same measurement period.

(d) "Back-office operation" means a wholly owned company worksite location that meets all of the following criteria:

(1) The main activities are functions that support the core focus of the business.

(2) Support activities are performed for other company-owned worksites in which the company has more than 50 percent equity.

(3) The worksite could have been geographically located anywhere.

(e) "Certificate of intent to invest" means a project description form.

(f) "Certification period" means the interval during which a worksite is eligible to receive HPIP benefits according to K.A.R. 110-6-11.

(g) "Combined worksite" means two or more worksites referenced on the same application according to K.A.R. 110-6-11.

(h) "Commence investment" means to make a formal commitment and to invest, with both actions being directly connected to the project description form previously submitted to the department.

(i) "Commercial customer" means an organized entity that engages in the manufacture or sale of products or the provision of services to other entities or individuals.

(j) "Core focus" means an activity that is designated by the NAICS code number assigned to a company and produces more than 50 percent of a company's revenue.

(k) "Department" means Kansas department of commerce.

(l) "Formal commitment to invest," for a company, means one or both of the following:

(1) The company relocates assets that it already owns to Kansas from an out-of-state location.

(2) The company enters into a written agreement that provides either party with legally enforceable remedies if the agreement is breached.

(m) "Fully operational," when used to describe a new worksite, means that the worksite is performing substantially all major core focus functions.

(n) "Full-time-equivalent employees" and "FTE employees," for purposes of calculating internal average wage during a measurement period, shall include leased employees and shall be computed by the following method:

(1) The number of hours worked by any permanent employees who normally work fewer than 40 hours per week shall be totaled and then divided by 2,080 hours, dropping any fractions.

(2) The result of paragraph (n)(1) then shall be added to the average number of employees who normally worked 40 or more hours per week during the measurement period.

(o)"Government customer," as used in the act, means an organization that is not a related taxpayer, as defined by K.S.A. 79-32,154(h) and amendments thereto, and meets one of the following conditions:

(1) Is classified in major NAICS code sections 922 through 928; or

(2) is a customer that is funded primarily with tax dollars and is not classified as a for-profit or a not-for-profit organization.

(p)"Gross revenues," as used in K.S.A. 74-50,131 and amendments thereto, means that term as commonly used in financial and accounting applications under generally accepted accounting principles (G.A.A.P) in the United States.

(q)"Headquarters," as used in K.S.A. 74-50,131 (g)(6) and amendments thereto, means a worksite that meets all of the following conditions:

(1) The main activity at the worksite is providing direction, management, or administrative support for the operation of multiple company-owned worksites in which the applicant company has an ownership interest greater than 50 percent.

(2) The worksite is capable of being geographically located anywhere.

(r)"High-performance incentive program" and "HPIP" mean the department's incentive program that may provide tax benefits to a worksite pursuant to K.S.A. 74-50,131 and amendments thereto.

(s)(1) "HPIP source-of-revenue requirement" means the requirement for the types of businesses listed in K.S.A. 74-50,131(b), and amendments thereto, that more than 50 percent of total revenue at the worksite shall be generated from sales to any of the following:

(A) Kansas manufacturers assigned to major NAICS categories 311 through 339;

(B) out-of-state government customers;

(D) any combination of paragraphs (s)(1)(A) through (C).

(2) Revenues that shall be specifically excluded as eligible revenues under the HPIP source-of-revenue requirement are the following:

(A) Revenues generated as payment for medical services from Medicare, Medicaid, or any related administrative organizations; and

(B) revenues generated from medical services or products delivered to or used by individual patients, regardless of the source of payment.

(t) "KIT" means Kansas industrial training, as defined in K.S.A. 74-5065(a) and amendments thereto.

(u) "KIR" means Kansas industrial retraining, as defined in K.S.A. 74-5065(b) and amendments thereto.

(v) "Leased employees" shall include employees who meet the following criteria:

(1) Are engaged at the worksite pursuant to an agreement with a third party;

(2) are filling positions that are one year or longer in duration; and

(3) receive wages and benefits that are paid either directly or indirectly by the worksite where the leased employees are engaged.

(w) "Main activity" means an activity that utilizes more than 50 percent of the total square feet at a worksite or more than 50 percent of the total number of employees at a worksite.

(x) "Measurement period" and "MP" mean the four consecutive calendar quarters that a company shall use to meet and document satisfaction of the HPIP eligibility requirements.

(1) For a worksite expansion with an existing workforce, the MP shall be the four calendar quarters that immediately precede the selected certification period.

(2) For a new worksite with a new workforce, the MP shall be the first full four consecutive calendar quarters of operation at the new worksite.

(y) "Multinational corporation" and "multinational firm" mean a legal entity with at least one permanent worksite in the United States and one or more additional permanent worksites established in one or more other countries, with attendant personnel and owned or leased facilities, equipment, and infrastructure.

(z) "NAICS designation" means a six-digit designation in the North American industry classification system that identifies the main activities performed at a worksite. The NAICS designation is initially assigned to a worksite by the Kansas department of labor. At the request of the applicant, the Kansas department of labor's NAICS designation may be reviewed and adjusted by the secretary, if deemed appropriate, based upon the actual activity at the worksite.

(aa) "National corporation" and "national firm" mean a legal entity that has operations covering a broad geographical area within the U.S., with multiple permanent worksites wholly owned or affiliated with other legal entities, with attendant personnel and owned or leased facilities, equipment, and infrastructure.

(bb) "Nonmanufacturing business" means any commercial enterprise other than a manufacturing business assigned to major NAICS categories 311 through 339.

(cc) "On-the-job training" and "OJT" mean training situations during which a product or service that can be sold or used in internal operations is generated.

(dd) "Project description form" and "PD form" mean a form required as the first step to be able to access HPIP benefits. This form provides proof of foreknowledge of the HPIP program and shall be completed, signed, and submitted to the department before any formal commitment to invest.

(ee) "Qualified business facility investment" has the meaning specified in K.S.A. 79-32,154, and amendments thereto.

(ff) "Related taxpayer" has the meaning specified in K.S.A. 79-32,154, and amendments thereto.

(gg) "Sales to Kansas manufacturers," as used in the act, means sales to organizations that are not related taxpayers, in which the purchased goods or services are paid for by the purchasing organization or its designated agent and the purchased goods or services are delivered within Kansas to a worksite assigned to major NAICS categories 311 through 339 by the Kansas department of labor. Sales orders and payments may originate from either inside or outside Kansas.

(hh) "Secretary" means secretary of commerce.

(ii) "Total payroll cost" means the payroll amount defined by the Kansas department of labor as "total wages" on line 12 of the "quarterly wage report and unemployment tax return" or the "multiple worksite report." For a worksite, total payroll cost during the appropriate measurement period may be combined with any pretax earnings in which an employee has elected to direct to one of the following:

(1) A flexible-spending plan;

(2) a deferred compensation plan; or

(3) a retirement plan that includes earnings the employee would otherwise have received in the form of taxable wages had it not been for the voluntary deferral.

This term shall not include company-paid costs for health insurance, dental insurance, and any other employee benefits that are not reported to the Kansas department of labor on the employer's quarterly wage report or the multiple worksite report.

(jj) "Training and education eligible expense" means the amount actually paid for training and education of the group of employees, or portion thereof, that is used to determine the average wage at the worksite location, and from which the worksite expects to derive increased productivity or quality. The determination of expenditures that constitute training and education eligible expenses shall include the following:

(1) Eligible training and education expenditures shall include instructor salaries, curriculum planning and development, travel, materials and supplies, textbooks, manuals, minor training equipment, certain training facility costs, and any other expenditure that is eligible under KIT or KIR.

(2) The following other expenditures shall be allowable but shall be subject to maximum caps:

(A) Wages of employees during eligible training, up to a maximum of 400 percent of the applicable HPIP alternative wage standard hourly wage;

(B) employee instructors' salaries, subject to a maximum of 400 percent of the applicable HPIP alternative wage standard hourly wage; and

(C) training-related travel expenses, with a maximum meals allowance of $120 per day and lodging costs of $300 per night.

(3) Expenditures for the following shall be excluded as training and education eligible expenses:

(A) Compensation paid to an employee trainee who is receiving on-the-job training;

(B) compensation paid to an employee during self-training, except for time in which the employee is involved in activities related to an approved computerized course of study;

(C) bonus pay received as compensation related to the company's financial performance or the employee's job performance, or both;

(D) overtime pay, unless the employee is being paid at an overtime rate while participating in eligible training;

(E) operations manuals and reference manuals. However, training-specific manuals shall be allowable; and

(F) training and education costs covered by monies or grants obtained from state, federal, or other government-sponsored workforce training programs.

(kk) "Wage standard" means the average wage information developed for the department for the appropriate NAICS designation using all worksites located within a geographical area as defined by the secretary that are required to provide the Kansas department of labor with a "quarterly wage report and unemployment tax return" or a "multiple worksite report."

(ll) "Worksite" has the same meaning as that specified for "qualified business facility" in K.S.A. 79-32,154, and amendments thereto.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2012 Supp. 74-50,131; effective Sept. 13, 2013.)

Kan. Admin. Regs. § 110-6-9 Application

(a) After the measurement period for a worksite has been established, the applicant may submit an application to the department for certification of the worksite, on a form prescribed by the secretary, together with all supplemental forms and documentation necessary to demonstrate satisfaction of the program requirements. Sufficiency of all submitted documentation shall be determined by the secretary, who may request additional information. A worksite shall not be certified until all program requirements are satisfied.

(b) Certification of the worksite in which the applicant is planning to make a qualified business facility investment, as defined by K.S.A. 79-32,154(e) and amendments thereto, shall be contingent on documentation submitted by the applicant to the department that the worksite has met all statutory criteria during the measurement period, except as specified in K.A.R. 110-6-12(b). However, a determination may be made by the secretary that it is in the best economic interests of the state to allow initial certification or recertification based on a promise of future performance, rather than historical accomplishments, if certification is deemed justified by the magnitude of potential job creation and investment and by other considerations deemed appropriate by the secretary.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2012 Supp. 74-50,131; effective Sept. 13, 2013.)

Kan. Admin. Regs. § 110-6-10 Certification of a worksite

Each applicant shall meet the following requirements:

(a) (1) The NAICS designation assigned to the worksite shall be under an appropriate NAICS designation, as specified in K.S.A. 74-50,131 and amendments thereto;

(2) the worksite, regardless of its NAICS designation, shall be determined by the secretary to be a headquarters or back-office operation of a national firm or multinational firm pursuant to this article; or

(3) the worksite, regardless of its NAICS designation, had been certified as a headquarters or back-office operation of a national firm or multinational firm by the secretary before the effective date of this regulation. The worksite shall retain its certification as a headquarters or back-office operation of a national firm or multinational firm unless the worksite would no longer qualify using the criteria in effect for the original worksite certification.

(b) Before any formal commitment to invest, the applicant shall demonstrate knowledge of the HPIP program by submitting a certificate of intent to invest, on the PD form prescribed by the secretary. The worksite information provided on the PD form shall include the following:

(1) Estimated investment amounts;

(2) a projected starting date;

(3) information regarding current and anticipated net new job creation and retention with associated payroll levels;

(4) revenue and sales projections; and

(5) any other relevant information if requested by the secretary.

(c) Certification of a worksite for the sole purpose of utilizing an HPIP tax credit that has been carried forward shall not require the submission of an additional project description form and may be applied for with a sworn statement using a form prescribed by the department.

(d) If the main activity at a worksite is not related to the headquarters or back-office operation but all other program requirements are satisfied, the applicant may seek certification only for that portion of the worksite's area that houses the headquarters or back-office operation of that worksite if the company's accounting system has the capability to allow a segment of the worksite to independently track the various elements that support satisfaction of HPIP requirements.

HPIP benefits shall be calculated by determining the portion of a qualified business facility investment used solely for that portion of the worksite housing the headquarters or back-office operation.

(e) After meeting all HPIP requirements, the worksite shall be certified by the secretary to the department of revenue. Before a worksite may be certified, all records used to support HPIP certification shall be subject to verification by the department.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2012 Supp. 74-50,131; effective Sept. 13, 2013.)

Kan. Admin. Regs. § 110-6-11 Certification period (CP)

(a) After establishing the measurement period at the worksite, the applicant shall establish a certification period as follows:

(1) For a worksite that has been fully operational for at least four calendar quarters, a 12-month certification period shall begin, at the option of the applicant, on any date during the calendar quarter following the end of the MP.

(2) For a new worksite with a new workforce, the certification period shall begin at the onset of the eligible qualified capital investment to establish this worksite and shall continue for 12 months after the end of the MP. There may be two exceptions as follows:

(A) If, at the commencement of full operations, the new worksite is staffed with a workforce comprised of at least 85 percent of employees who have been relocated from other Kansas worksites of the company and if compliance with all other HPIP requirements is documented to the satisfaction of the secretary for the four calendar quarters immediately preceding the start of full operations, the applicant shall have the option to use the four calendar quarters before the start of full operations at the new location as its measurement period with a certification period starting at the onset of qualified capital investment to establish this new worksite. The certification period shall continue through the first four quarters of operations.

(B) A firm that is relocating from outside of Kansas shall have the option to use the four previous quarters before the start of full operations at the new worksite as its measurement period with a certification period starting at the onset of eligible capital investment to establish this new worksite and shall continue through the first four quarters of operations, if all of the following conditions are met:

(i) The new worksite is not subject to the HPIP source-of-revenue requirement and is using participation in KIT or KIR to satisfy the HPIP training requirement.

(ii) At the commencement of full operations, the new worksite is staffed with a workforce comprised of at least 85 percent of employees who have been relocated from non-Kansas facilities of the firm or from a combination of Kansas and non-Kansas facilities.

(iii) Wage costs for those relocated employees are documented to the satisfaction of the secretary for the four calendar quarters immediately preceding the start of full operations.

(b) If a company chooses to combine worksites for HPIP certification, then each worksite shall establish as its measurement period four combined calendar quarters of operations that do not overlap any other measurement period for any participating worksites. Certification shall begin on any date of the applicant's choosing during the quarter that follows the end of the measurement period and shall extend for a 12-month period.

(c) If worksites are combined in a single application to receive aggregate HPIP certification, then the applicable set of requirements shall consist of the most restrictive requirement for any of the individual worksites that are participating in the combined application, according to the following requirements:

(1) If any individual participating worksite is subject to the HPIP source-of-revenue requirement, then the combined worksite application as a whole shall be subject to the HPIP source-of-revenue requirement.

(2) If participating worksites come from more than one HPIP wage region, then the highest wage threshold from those wage regions shall apply for the participating worksites.

(3) If a headquarters or back-office operation is not required to satisfy the HPIP source-of-revenue requirement while another worksite is so required, then each participating worksite shall be required to satisfy this requirement.

(4) If worksites in the same wage area fall into different size categories, the most restrictive wage standard shall apply to each of the combined worksites.

(5) If each of the combined worksites has 500 or fewer employees but in aggregate the number of employees is greater than 500, then the higher wage threshold shall apply.

(d) Certification of a worksite for the sole purpose of obtaining training and education tax credits or a sales tax exemption certificate shall be allowed if both of the following conditions are met:

(1) All other program requirements are satisfied.

(2) The applicant demonstrates prior knowledge of the program by submitting the project description form. This form shall be received by the department before the start of the certification period.

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History

History: (Authorized by and implementing K.S.A. 2012 Supp. 74-50,115 and K.S.A. 2012 Supp. 74-50,131; effective Sept. 13, 2013.)

Kan. Admin. Regs. § 110-6-12 Training and education requirement

After a worksite has met the requirements of K.A.R. 110-6-10, that worksite shall meet the requirements of subsection (a) or (b) before the applicant obtains certification of the worksite:

(a) The applicant shall participate in a KIT or KIR workforce training project at the worksite to enhance employee skills. If this method is to be utilized in satisfaction of the HPIP training and education requirement, the timing of the project shall be one of the following:

(1) If a KIT or KIR project terminates during the applicant's chosen measurement period, at least three months of the training project shall have occurred during the measurement period.

(2) A KIT or KIR project of at least three months in duration commences any time during the applicant's chosen measurement period or during the following calendar quarter but shall not commence after the start of the certification period except as provided by K.A.R. 110-6-11(a)(2).

(b) The applicant shall make a cash investment of at least two percent of its total payroll costs at the worksite in eligible training and education expenses during the measurement period, except that costs incurred to train employees needed to staff a start-up worksite, before operations begin at the worksite, shall be counted as part of training costs during the first four quarters of operations for those employees who have been hired into permanent positions before the start of operations. Prepayment for training may be counted in a measurement period apportioned according to the extent that the related training has been completed during the measurement period.

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History

History: (Authorized by and implementing K.S.A. 2012 Supp. 74-50,131; effective Sept. 13, 2013.)

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 79-32,198; effective Sept. 28, 2001.)

Kan. Admin. Regs. § 110-7-6 Audits

An independent audit of the organization's financial records shall accompany each proposal. Except as specified in K.A.R. 110-7-10(c), any organization that does not regularly submit to or authorize an outside audit of its budget and spending, or any newly formed organization, may submit the most current IRS 990 return in lieu of an audit if the organization obtains prior approval of the director.

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History

History: (Authorized by and implementing K.S.A. 79-32,198; effective Sept. 28, 2001.)

Kan. Admin. Regs. § 110-7-8 Review of proposals

(a) Approval or disapproval of each proposal shall include consideration of the following criteria:

(1) The organization's demonstrated capacity to administer the project;

(2) the organization's demonstrated fund-raising capacity;

(3) the organization's documentation of the need for the proposed activity in the area within which the project is to be carried out; and

(4) the organization's demonstration of the level of community support for the project.

(b) No proposal for crime prevention shall be reviewed if the proposal does not include a written endorsement from the local governing body. Other proposals with a written endorsement from the local governing body shall receive a higher priority.

(c) Each applicant shall be notified by the director, within 90 days of submission of the proposal, of the director's decision regarding the proposal.

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History

History: (Authorized by and implementing K.S.A. 79-32,198; effective Sept. 28, 2001.)

Kan. Admin. Regs. § 110-7-9 Gifts; gift period

(a) Each proposal shall include a statement indicating that only non-cash gifts related directly to the approved project will be accepted and that acceptance of the non-cash gifts will occur within 18 months after the date of approval of the proposal by the director. To be considered "related directly," the non-cash gift shall be actually used for, or as part of, the project. A gift received before or after this period shall not be approved for tax credits.

(b) Each person wanting a tax credit and donating a gift to an approved project shall submit a tax credit application to the department within one year of the donation of the gift.

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History

History: (Authorized by and implementing K.S.A. 79-32,198; effective Sept. 28, 2001.)

Kan. Admin. Regs. § 110-7-10 Administration of projects

Each proposal shall include a statement indicating all of the following: (a) The organization implementing an approved project will submit quarterly reports and a final report at the end of the project.

(b) Each change in the project's approved budget will be submitted for approval by the department before taking effect.

(c) An independent audit of the project will be obtained for the project if the project utilizes more than $100,000 in tax credits.

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History

History: (Authorized by and implementing K.S.A. 79-32,198; effective Sept. 28, 2001.)

History: (Authorized by K.S.A. 74-8229(e); implementing K.S.A. 74-8225(e), as amended by L. 2003, Ch. 20, §2; effective Dec. 12, 2003; revoked Dec. 3, 2004.)

Article 9 Sales Tax Revenue Bonds

Kan. Admin. Regs. § 110-9-1 Definitions

As used in these regulations, the following terms shall have these meanings:

(a) "Applicant" means a city in Kansas seeking to finance a redevelopment project using STAR bonds.

(b) "City" means the governing body of an incorporated Kansas municipality.

(d) "Direct expenditures" means visitors' spending that directly supports the jobs and incomes of people and firms that deal directly with visitors brought to an area by a tourism attraction.

(e) "Direct job creation" means the establishment of any position in which a person will be employed by a business to perform duties in connection with the operation of the business on one of the following bases:

(1) A year-round, full-time basis;

(2) a part-time basis, if the person is customarily performing the duties at least 20 hours each week throughout the taxable year; or

(3) a seasonal basis, if the person performs the duties for substantially all of the season customary for the position in which the person is employed.

(f) "Eligible area" has the meaning specified in K.S.A. 12-1770a, and amendments thereto. This term may include noncontiguous land if the secretary determines that a sufficient connection exists appropriate for the proposed project.

(g) "Enabling effects" means the pattern of business development of compatible industries in an area or region due to direct, indirect, or induced expenditures and the environmental effects of a tourism attraction.

(h) "Fixtures" means goods, as defined in the uniform commercial code, K.S.A. 84-1-101 et seq. and amendments thereto, that have become so related to specific real property that an interest in them arises under real property law.

(i) "Indirect expenditures" means the amount of money expended in regional sectors that supply goods and services in support of the direct expenditures resulting from a tourism attraction.

(j) "Induced expenditures" means the increased sales within a region resulting from a tourism attraction.

(k) "Principal" means one or more persons with the primary responsibility for the development of a STAR bond project.

(l) "Secretary" means the secretary of the department of commerce.

(m) "STAR bonds" means sales tax revenue bonds payable from the revenue sources identified in K.S.A. 12-1774(a)(1)(D) and K.S.A. 12-1774(a)(1)(F), and amendments thereto.

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History

History: (Authorized by K.S.A. 2005 Supp. 74-5002r; implementing K.S.A. 2005 Supp. 74-5002r and 74-5005; effective April 21, 2006.)

Kan. Admin. Regs. § 110-9-2 Special bond project plan; additional documentation

Each applicant that desires to use STAR bonds to finance a special bond project in Kansas shall apply to the secretary for a determination that the project qualifies as a major commercial entertainment or tourism area. If the project is to be located in a redevelopment district that is wholly within a county but not within the geographic limits of an incorporated Kansas city, then after the governing body of the county approves the creation of the district, a city within the county shall agree by interlocal agreement to be the county's sponsoring applicant.

(a) Each applicant shall provide the secretary with a special bond project plan prepared pursuant to K.S.A. 12-1780c, and amendments thereto. Each applicant shall also provide the following:

(1) Documentation that the city has met all resolution, hearing, and ordinance requirements;

(2) a statement on how the proposed project meets the eligibility limitations on bond authority set forth in K.S.A. 12-1770a(g), and amendments thereto;

(3) a project budget; and

(4) any other relevant information required by the secretary.

(b) The summary of the feasibility study included as part of the special bond project plan shall be prepared by an independent party with recognized expertise in preparing this type of study and shall include the following:

(1) The information required by K.S.A. 12-1770a(k), and amendments thereto;

(2) a description of any project submitted under K.S.A. 12-1771d, and amendments thereto, to satisfy the requirements of K.S.A. 12-1770a(l), and amendments thereto;

(3) a statement of how the jobs and taxes obtained from the project will contribute significantly to the economic development of the state and region;

(4) a statement concerning whether a portion of the sales taxes collected pursuant to K.S.A. 12-187, and amendments thereto, is committed to other uses and unavailable as revenue for the redevelopment project. If a portion of sales taxes is so committed, the applicant shall describe the following:

(A) The percentage of sales taxes collected that is so committed; and

(B) the date or dates on which this diverted revenue can be pledged for repayment of special obligation bonds;

(5) an anticipated principal and interest payment schedule on the bonds; and

(6) a copy of the minutes of the governing body meeting or meetings of any city whose bonding authority will be utilized in the project, evidencing that a redevelopment plan has been created, discussed, and adopted by the city in a regularly scheduled open public meeting.

(c) If any of the items specified in this regulation are not included, the applicant shall be notified about the items or information required to be provided to the secretary before the secretary will respond.

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History

History: (Authorized by K.S.A. 2005 Supp. 74-5002r; implementing K.S.A. 2005 Supp. 12-1770a, 12-1771d, 12-1780b, 12-1780c, and 74-5005; effective April 21, 2006.)

Kan. Admin. Regs. § 110-9-3 Certain findings; timing

If a finding by the secretary is required under K.S.A. 12-1774(a)(1)(D) and amendments thereto, the finding shall be made by the secretary within 60 days of the secretary's receipt of the information required by K.A.R. 110-9-2. A copy of this finding, when made, shall be mailed to the applicant.

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History

History: (Authorized by K.S.A. 2004 Supp. 74-5002r; implementing K.S.A. 2004 Supp. 12-1770a, as amended by L. 2005, ch. 186, § 7, K.S.A. 2004 Supp. 12-1774(a)(1)(D), as amended by L. 2005, ch. 132, § 6, and K.S.A. 74-5005, as amended by L. 2005, ch. 104, § 9; effective April 21, 2006.)

Kan. Admin. Regs. § 110-9-4 Secretary's review

Upon completion of the secretary's review of each special bond project plan, each applicant shall receive a written response containing a determination or seeking further information. If the written response requests further information, the 60-day time frame specified in K.A.R. 110-9-3 shall exclude the period beginning on the date on which the letter requesting further information is mailed through the date on which the information is received by the secretary.

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History

History: (Authorized by K.S.A. 2004 Supp. 74-5002r; implementing K.S.A. 2004 Supp. 12-1770a(g), as amended by L. 2005, ch. 186, § 7, K.S.A. 2004 Supp. 12-1774(a)(1)(D), as amended by L. 2005, ch. 132, § 6, and K.S.A. 74-5005, as amended by L. 2005, ch. 104, § 9; effective April 21, 2006.)

Kan. Admin. Regs. § 110-9-5 Due diligence

Before the secretary approves the use of STAR bonds to finance any special bond project, the applicant shall provide the secretary with evidence that the applicant has with due diligence explored the background and financial viability of the principals. If any principal has been convicted of a felony or a misdemeanor involving moral turpitude or business or financial improprieties, or is now or has ever been charged with or convicted of any civil or criminal offense relating to the conduct of the business of the principal or the issuance, sale, or solicitation for sale of any type of security, the applicant shall disclose this information.

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History

History: (Authorized by K.S.A. 2004 Supp. 74-5002r; implementing K.S.A. 2004 Supp. 12-1774(a)(1)(D), as amended by L. 2005, ch. 132, § 6, and K.S.A. 74-5005, as amended by L. 2005, ch. 104, § 9; effective April 21, 2006.)

Kan. Admin. Regs. § 110-9-6 Major commercial entertainment and tourism area; criteria

The following criteria shall be utilized by the secretary to determine whether a proposed project constitutes a major commercial entertainment and tourism area:

(a) Visitation, which shall include the following:

(1) Out-of-state visitation;

(2) visitation drawn from more than 100 miles distant from the community where the proposed project would be located; and

(3) the total annual visitation;

(b) economic impact, which shall include the following:

(1) Direct expenditures;

(2) indirect expenditures;

(3) induced expenditures;

(4) enabling effects; and

(5) direct job creation;

(1) The national destination attraction market;

(2) a defined multistate market area;

(3) the Kansas destination attraction market;

(4) the ability of the proposed project to utilize the nature, culture, or heritage that is unique to Kansas; or

(5) the ability of the proposed project to provide Kansas with a valuable, national market brand identity;

(d) the ability of the proposed project to gain sufficient market share to meet the following conditions:

(1) Remain profitable past the term of repayment of the STAR bonds; and

(2) maintain status as a significant factor for travel decisions;

(e) integration and collaboration with other resources or businesses, as determined by any of the following:

(1) Creation of overnight stays;

(2) collaboration or competition with other available retail and destination attractions; and

(3) the ability of the proposed project to utilize the nature, culture, or heritage that is unique to Kansas;

(f) the quality of service and experience provided, as measured against national consumer standards for the specific target market; and

(g) proposed project accountability, measured according to best industry practices.

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History

History: (Authorized by K.S.A. 2004 Supp. 74-5002r; implementing K.S.A. 2004 Supp. 12-1770a, as amended by L. 2005, ch. 186, § 7, K.S.A. 2004 Supp. 12-1774(a)(1)(D), as amended by L. 2005, ch. 132, § 6, and K.S.A. 74-5005, as amended by L. 2005, ch. 104, § 9; effective April 21, 2006.)

Kan. Admin. Regs. § 110-9-7 Audit reports

The period to be audited for the purpose of the annual audit reports shall be July 1 through the following June 30. Each audit report shall be submitted to the secretary on or before October 1 of the year in which that audited period ends.

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History

History: (Authorized by K.S.A. 2004 Supp. 74-5002r; implementing L. 2005, ch. 132, § 13 and K.S.A. 74-5005, as amended by L. 2005, ch. 104, § 9; effective April 21, 2006.)

Kan. Admin. Regs. § 110-9-8 Bond payments; subsequent special bond projects

(a) Each bond trustee shall distribute all revenues that have been pledged to pay the principal and interest on the special obligation bonds issued by a city to finance a special bond project in accordance with the provisions of the applicable bond resolution or trust indenture, upon distribution of the revenues by the Kansas department of revenue to the bond trustee.

(b) A city that has received STAR bond funding shall not receive additional STAR bond funding for any subsequent special bond project in the same redevelopment district without first receiving approval for each subsequent special bond project from the secretary.

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History

History: (Authorized by K.S.A. 2005 Supp. 74-5002r; implementing K.S.A. 2005 Supp. 12-1774 and 74-5005; effective April 21, 2006.)

Article 10 Low Income Housing Tax Credits

Kan. Admin. Regs. § 110-10-1 Selection criteria for review and award of low income housing tax credits

(a) The following objective scoring matrix, including the following criteria and the maximum points that may be assigned to each criterion, shall be used in the review and award of low income housing tax credits authorized to the state of Kansas by section 42 of the United States internal revenue code:

Description of Criteria | Maximum Number of Points (1) project location | 50 points (2) the housing needs characteristics for the market of the area in question | 45 points (3) project characteristics, including whether the project includes the use of existing housing as part of a community revitalization plan and whether the project is intended for eventual tenant ownership | 80 points (4) sponsor characteristics | 10 points (5) whether the project is designed to serve tenant populations with special housing needs, including tenant populations of households with children and units limited to tenants 55 years and older or to tenants with special needs | 75 points (6) whether the project will accept referrals of tenants who are on public housing waiting lists | 5 points (7) whether the development will be located in communities that have not previously received housing tax credits or whether the developer provides an independent, site-specific market study of the community | 45 points

(b) Each application shall be considered in relation to the other applications in each particular round of tax credit awards.

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History

History: (Authorized by and implementing L. 2003, Ch. 154, Sec. 103; effective, T-110-7-1-03, July 1, 2003; effective, T-110-10-8-03, Oct. 8, 2003; effective Feb. 27, 2004.)

Article 11 Kansas Downtown Redevelopment Act

Kan. Admin. Regs. § 110-11-1 Definitions

As used in these regulations and for purposes of administering the act, the following terms shall have the meanings specified in this regulation: (a) "Act" means the Kansas downtown redevelopment act, L. 2004, ch. 112, §§ 81 through 85, and amendments thereto.

(b) "Commercial, office, residential and public use," as that term is used in the definition of "core commercial district" in L. 2004, ch. 112, § 82(b) and amendments thereto, shall include hotels, motels, bed and breakfasts, banks, office buildings, railroad stations, public dining facilities, retail establishments, and public buildings that occupy a collective and facing frontage on one side or both sides of a street within the core commercial district.

(c) "Compact" means that the commercial, office, residential, and public structures within a proposed redevelopment area are contiguous with each other.

(d) "Department" means the department of commerce.

(e) "Investment in improvements to the real property or trade fixtures" of a structure means rehabilitation expenditures.

(f) "Rehabilitation expenditures" and "approved rehabilitation expenditures" mean investments by structure owners that are consistent with the department's "downtown redevelopment guidelines" for the physical improvement of compact commercial, office, residential, and public use structures within a core commercial district. The department's "downtown redevelopment guidelines," as in effect on July 1, 2004, are hereby adopted by reference.

(g) "Residential housing" means structures within a core commercial district once used for hotels, motels, bed and breakfasts, and upstairs apartments within these structures.

(h) "Secretary" means the secretary of the department of commerce.

(i) "Trade fixtures" means machinery and equipment, communication equipment, and office equipment that can be removed from a structure without jeopardizing the structural integrity.

(j) "Unincorporated area of a county" means the portion of a county that is no longer an incorporated city but where there remains a historic or recognizable core commercial district.

(k)(1) "Vacancy rate" means the square footage of properties within a core commercial district that currently is not utilized for commercial, office, residential or public use, expressed as a percentage of the aggregate properties' total square footage utilized for commercial, office, residential and public use. This term shall not include square footage devoted solely to storage or warehouse usage if the property owner is compensated by another for the use of the storage or warehousing square footage.

(2) The vacancy rate shall be determined by dividing the aggregate square footage of commercial, office, residential, and public use structures in the redevelopment area, excluding square footage devoted solely to storage or warehousing for a fee, that is not being utilized for ongoing business activities by the aggregate square footage of commercial, office, residential, and public use structures in the redevelopment area, including square footage devoted solely to storage or warehousing for a fee.

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History

History: (Authorized by L. 2004, ch. 183, § 7; implementing L. 2004, ch. 112, §§ 81, 82, 83, and 84; effective April 22, 2005.)

Kan. Admin. Regs. § 110-11-2 Application for proposed redevelopment area

(a) Any governing body may request the secretary's approval to create a redevelopment area under the act by submitting an application on a form provided by the department.

(b) The secretary's decision on the application and the controlling facts on which the decision is made shall be communicated in writing to the governing body within 90 days of the secretary's decision.

(c) The secretary's decision shall be a final agency action that is subject to review in accordance with the act for judicial review, K.S.A. 77-601 et seq., and amendments thereto.

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History

History: (Authorized by L. 2004, ch. 183, § 7; implementing L. 2004, ch. 112, §§ 81 and 83; effective April 22, 2005.)

Kan. Admin. Regs. § 110-11-3 Progress reports

(a) Each governing body whose application for a redevelopment area is approved by the secretary shall submit annual progress reports on forms provided by the department. Each report shall document and compare the progress actually made by the owners of the structures in the redevelopment area against the proposed redevelopment area plan.

(b) All new assessed valuations of structures within a redevelopment area shall be included in the next progress report submitted to the secretary under subsection (a). The governing body shall identify the affected properties and their previous and current valuations.

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History

History: (Authorized by L. 2004, ch. 183, § 7; implementing L. 2004, ch. 112, § 81 and L. 2004, ch. 183, § 7; effective April 22, 2005.)

History: (Authorized by K.S.A. 2004 Supp. 74-50,173 and K.S.A. 2004 Supp. 74-5002r; implementing K.S.A. 2004 Supp. 74-50,169; effective April 8, 2005; revoked July 26, 2013.)

Article 13 Rural Business Development Tax Credit Program

Kan. Admin. Regs. § 110-13-1 Definitions

As used in these regulations, the following definitions shall apply:

(a) "Act" means the rural business development tax credit program pursuant to K.S.A. 74-50,154, and amendments thereto.

(b) "Business support services" means business counseling, technical assistance, and business planning services provided to existing or prospective small businesses or entrepreneurs.

(d) "Entrepreneur" means an individual creating a new business, service, or product.

(e) "Fiscal year" means the 12-month period beginning July 1 and ending June 30.

(f) "Regional business development fund" means an authorized and audited fund that is created by taxpayer contributions, interest income, and investment income and is managed by the regional foundation board of directors for the purposes of economic and leadership development in the region.

(g) "Regional leadership development" means training and education that enable a region to develop community leadership that strengthens the economic and social environment in that region.

(h) "Secretary" means secretary of the department of commerce.

(i) "Small business" means an independently owned and operated business having fewer than 100 full-time equivalent employees.

(j) "Technology improvements" means a project that results in the ability of the region to enhance service in areas including broadband access, web site creation, wireless internet services, computer programming, computer servers, computer networks, computer databases, electronic training modules, electronic media, and any other technological areas deemed eligible by the secretary.

(k) "Utilization" means a regional foundation's demonstrated ability to obtain enough qualifying contributions to fully use all tax credits allocated to the region during the period of time in which the tax credits were allocated to the regional foundation by the secretary.

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History

History: (Authorized by K.S.A. 2004 Supp. 74-5002r; implementing K.S.A. 74-5005, K.S.A. 74-5007a, and K.S.A. 2004 Supp. 74-50,154; effective Aug. 12, 2005.)

Kan. Admin. Regs. § 110-13-2 Designated regions

Each of the following Kansas county groupings shall be designated as a region:

(a) "East central region" means Douglas, Franklin, Johnson, Leavenworth, Miami, and Wyandotte counties.

(b) "North central region" means Chase, Clay, Cloud, Dickinson, Ellsworth, Geary, Jewell, Lincoln, Lyon, Marshall, Mitchell, Morris, Ottawa, Pottawatomie, Republic, Riley, Saline, Wabaunsee, and Washington counties.

(d) "Northwest region" means Cheyenne, Decatur, Ellis, Grove, Graham, Logan, Norton, Osborne, Phillips, Rawlins, Rooks, Russell, Sheridan, Sherman, Smith, Thomas, Trego, and Wallace counties.

(e) "South central region" means Butler, Chautauqua, Cowley, Elk, Greenwood, Harper, Harvey, Kingman, Marion, McPherson, Reno, Rice, Sedgwick, and Sumner counties.

(f) "Southeast region" means Allen, Anderson, Bourbon, Cherokee, Coffey, Crawford, Labette, Linn, Montgomery, Neosho, Wilson, and Woodson counties.

(g) "Southwest region" means Barber, Barton, Clark, Comanche, Edwards, Finney, Ford, Grant, Gray, Greeley, Hamilton, Haskell, Hodgeman, Kearny, Kiowa, Lane, Meade, Morton, Ness, Pawnee, Pratt, Rush, Scott, Seward, Stafford, Stanton, Stevens, and Wichita counties.

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History

History: (Authorized by K.S.A. 2004 Supp. 74-5002r; implementing K.S.A. 2004 Supp. 74-50,154; effective Aug. 12, 2005.)

Kan. Admin. Regs. § 110-13-3 Determination of regional foundations

(a) Within each region, agencies and organizations that exist primarily to engage in economic development activities on behalf of cities, counties, and multicounty areas shall propose one agency or organization among them as the regional foundation. The agency or organization that is the proposed regional foundation shall submit an application to the secretary, on a form provided by the department.

(b) The name, address, and occupation of each regional foundation board member shall be submitted to the secretary within 10 business days after the board is chosen.

(c) Each regional foundation shall provide documentation supporting at least one of the criteria specified in K.S.A. 74-50,154 and amendments thereto.

(d) Each regional foundation's board of directors shall oversee and determine the use of funds generated through contributions.

(e) Each regional foundation shall provide the secretary with the following information:

(1) Its investment philosophy, including how the regional foundation intends to target the funds generated through contributions towards specific industries, businesses, services, or products; and

(2) a written policy describing the criteria and procedures that the regional foundation intends to use to review and to approve or deny applications submitted to the foundation for the use of funds within the region.

(f) Each regional foundation shall provide the secretary with a list of projects that provide economic and leadership development appropriate for that region.

(g) If the agencies and organizations within a region are unable to propose a regional foundation pursuant to subsection (a), each agency or organization within the region requesting designation as the regional foundation shall submit the following information to the secretary for determination as to the designation of the regional foundation:

(1) The name, address, and history of the agency or organization and the manner in which the agency or organization qualifies pursuant to subsection (c);

(2) a list of the names and occupations of the board of directors who are proposed by the agency or organization;

(3) a history of the agency's or organization's economic development activities;

(4) the types of supporting proposals for funding that the agency or organization believes are best suited to the region and the supporting reasons;

(5) the reason that the agency or organization is best suited to lead and moderate economic development projects in the region;

(6) a description of the prior fund-raising capacity of the members of the agency or organization; and

(7) examples of community support within the region for the applicant's appointment as the regional foundation.

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History

History: (Authorized by K.S.A. 2004 Supp. 74-5002r; implementing K.S.A. 2004 Supp. 74-50,154; effective Aug. 12, 2005.)

Kan. Admin. Regs. § 110-13-4 Regional business development funds; eligible projects

(a) Each regional foundation shall administer a regional business development fund.

(b) The sums generated by contributions to each regional business development fund shall be allocated according to the following provisions:

(1) No less than 60 percent may be allocated for job creation or retention.

(2) A maximum of 10 percent may be allocated towards the administrative cost of overseeing the project.

(3) The remaining funds may be allocated towards other eligible activities in a manner that fits the region's priorities and needs.

(1) Business start-ups;

(2) business expansion;

(3) business retention;

(4) business support services;

(5) regional leadership development;

(6) technology improvements; and

(7) administrative services.

(d) All interest generated on idle funds administered for this program by the regional foundation shall be used by the foundation's board in a manner not inconsistent with this regulation.

(e) Any regional foundation may exceed the maximum percentages allowed for one or more eligible projects with the prior approval of the secretary.

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History

History: (Authorized by K.S.A. 2004 Supp. 74-5002r; implementing K.S.A. 74-5005, as amended by L. 2005, ch. 104, sec. 9, and K.S.A. 74-5007a; effective Aug. 12, 2005; amended May 5, 2006.)

Kan. Admin. Regs. § 110-13-5 Allocation of tax credits

(a) Each regional foundation shall contract with the department for the foundation's utilization of tax credits through a tax credit agreement.

(b) Each regional foundation shall initially receive an equal share of the total amount of tax credits allocated in a given fiscal year.

(c) Each tax credit agreement shall be reviewed by the secretary on the anniversary date of the agreement to determine whether the regional foundation is utilizing its tax credits. The regional foundation shall attempt to achieve 100 percent utilization of the tax credits. Compliance with this level of utilization of tax credits shall be ascertained by the secretary through quarterly and annual reviews.

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History

History: (Authorized by K.S.A. 2004 Supp. 74-5002r and K.S.A. 2004 Supp. 74-50,154; implementing K.S.A. 2004 Supp. 74-50,154; effective Aug. 12, 2005.)

Kan. Admin. Regs. § 110-13-6 Reallocation of tax credits

(a) If the secretary determines that allocated tax credits are not being utilized in the manner specified in the regional foundation's approved proposal, the tax credits may be reallocated by the secretary to other regional foundations that have utilized all of the tax credits originally assigned to them.

(b) Tax credits may be reclaimed by the secretary, if the secretary determines that there is no specific use anticipated by a regional foundation for the foundation's remaining tax credits. A written notice shall be sent by the secretary to the regional foundation 30 days after the annual review of the tax credit agreement. The notice shall indicate the amount of unclaimed tax credits and instruct the foundation to submit a utilization schedule within 15 calendar days. Within 15 calendar days after the deadline for the foundation's response, a decision whether to reclaim the remaining tax credits from the regional foundation shall be made by the secretary.

(c) No regional foundation shall seek or take contributions for encumbering any reallocated tax credits until authorized in writing by the secretary.

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History

History: (Authorized by K.S.A. 2004 Supp. 74-5002r; implementing K.S.A. 2004 Supp. 74-50,154(c)(5); effective Aug. 12, 2005.)

Kan. Admin. Regs. § 110-13-7 Appeals

Any regional foundation may appeal the reallocation of its tax credits, if the secretary's decision involves the reallocation of over 10 percent of the foundation's annual allocation of tax credits. Each appeal shall be submitted in writing to the secretary within 30 calendar days of notice of the reallocation, stating the reasons for the appeal and the course of action requested by the regional foundation to satisfy the deficiencies noted by the secretary in the notice. Each appeal shall be decided by the secretary within 15 calendar days of receipt of the appeal request.

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History

History: (Authorized by and implementing K.S.A. 2004 Supp. 74-5002r; effective Aug. 12, 2005.)

Kan. Admin. Regs. § 110-13-8 Progress reports

Each regional foundation shall submit quarterly progress reports concerning its projects to the secretary on or before January 10, April 10, July 10, and October 10 each year. A quarterly progress report shall be due even if no tax credit is utilized in that quarter. If a regional foundation does not submit these reports by the specified dates, the regional foundation shall not take contributions from taxpayers for tax credits and shall not submit tax credit applications for processing by the department until the delinquent quarterly progress reports have been filed with the department.

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History

History: (Authorized by K.S.A. 2004 Supp. 74-5002r; implementing K.S.A. 2004 Supp. 74-50,154; effective Aug. 12, 2005.)

Kan. Admin. Regs. § 110-13-9 Auditing

Each regional foundation receiving tax credits shall have an annual financial and compliance audit performed according to standard auditing procedures. Each audit shall be performed by an independent certified public accountant (CPA) who is licensed in Kansas. The audit report shall be submitted by the independent CPA to the secretary on or before February 28 each year.

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History

History: (Authorized by K.S.A. 2004 Supp. 74-5002r and K.S.A. 2004 Supp. 74-50,154; implementing K.S.A. 2004 Supp. 74-50,154; effective Aug. 12, 2005.)

Kan. Admin. Regs. § 110-13-10 Administration of contributions and regional business development fund

(a) Until the secretary approves each contribution from a taxpayer to the regional foundation as being eligible for tax credits, the regional foundation shall not consider, and the foundation shall not communicate to any taxpayer, that the contribution is entitled to a tax credit under this act.

(b) Each regional foundation being allocated tax credits shall open an account for the regional business development fund in a bank or other financial institution located in the state of Kansas that is insured by either the federal deposit insurance corporation (FDIC) or the national credit union share insurance fund (NCUSIF). The foundation shall deposit any funds related to each project in that account.

(c) Each contribution by taxpayers made to the regional foundation shall indicate that the contribution is to be allocated to the regional foundation's regional business development fund as specified in the regional foundation's approved proposal.

(d) Any regional foundation may amend its budget if the scope of work for the projects remains the same. Each amendment exceeding 10 percent of the regional foundation's total regional business development fund budget shall require the approval of both the regional foundation's board of directors and the secretary.

(e) When requesting contributions from individuals and businesses, the regional foundation shall not utilize tax credits in excess of the amount allocated by the secretary.

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History

History: (Authorized by K.S.A. 2006 Supp. 74-5002r and K.S.A. 2006 Supp. 74-50,154; implementing K.S.A. 2006 Supp. 74-50,154; effective Aug. 12, 2005; amended Nov. 26, 2007.)

Article 13a Enterprise Facilitation Fund

Kan. Admin. Regs. § 110-13a-1 Definitions

As used in these regulations and for the purposes of administering the enterprise facilitation fund pursuant to K.S.A. 74-50,154 and amendments thereto, the following definitions shall apply:

(a) "Agreement" means the agreement by each EF group to use the EF funds as authorized by the secretary. This term shall include the reporting requirements regarding the actual expenditures of the funds and results of each project.

(b) "Community boards" means a local board of community volunteers that includes an executive board who manages the day-to-day business for each EF group.

(d) "Enterprise facilitation fund" and "EF fund" mean the fund created by K.S.A. 74-50,155(a) and amendments thereto.

(e) "Enterprise facilitation group" and "EF group" mean an entity recognized by the secretary that provides guidance to entrepreneurs and existing businesses.

(f) "Enterprise facilitation project" and "project" mean activities based on a plan developed by an EF group to help small communities develop new small businesses through entrepreneurs and to develop existing businesses so that the businesses can operate more efficiently or expand.

(g) "Entrepreneur" means an individual creating, organizing, or managing a new business or service.

(h) "Facilitator" means an individual hired by a community board to provide intensive, one-on-one management coaching and networking assistance, by linking entrepreneurs and small businesses to programs and resources offered by development organizations and professionals.

(i) "Fiscal agent" means the entity authorized by an EF group to administer funds on behalf of the EF group.

(j) "Fiscal year" means the 12-month period beginning July 1 and ending June 30.

(k) "Operating costs" means the day-to-day costs incurred by an EF group, including costs for salaries, travel, telephones, photocopiers, utilities, office equipment, and rent.

(l) "Secretary" means secretary of the department of commerce.

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History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-50,154 and 74-50,155; effective July 25, 2008.)

Kan. Admin. Regs. § 110-13a-2 Application requirements for enterprise facilitation project funding

(a) Each enterprise facilitation group shall be notified by the department of the award amount available for each group within 15 business days following the deadline for the regional foundations to transfer the percentage of funds raised during the previous fiscal year as required by K.S.A. 74-50,154(c)(1), and amendments thereto. All such funds transferred to the department shall be awarded to the enterprise facilitation groups to be used for operating costs.

(b) To be eligible for funding from the enterprise facilitation fund, each enterprise facilitation group shall meet the following requirements:

(1) Submit the following to the secretary:

(A) An annual progress report; and

(B) the most recent quarterly progress reports; and

(2) enter into an agreement with the department.

(c) The agreement specified in paragraph (b)(2) shall state the intended use of the funds, the reporting requirements for the expenditure of funds, and the anticipated results of each project.

(d) Each eligible enterprise facilitation group shall receive an equal portion of the total funds transferred to the department pursuant to K.S.A. 74-50,154(c)(1), and amendments thereto. Funding shall be disbursed to each eligible enterprise facilitation group within 15 business days of execution of the agreement specified in this regulation. If an enterprise facilitation group ceases to exist or is otherwise not eligible for funding, that group's unexpended or remaining or unused allocation shall be returned to the enterprise facilitation fund. That allocation shall then be divided equally among the remaining eligible enterprise facilitation groups.

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History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-50,154 and 74-50,155; effective July 25, 2008.)

Kan. Admin. Regs. § 110-13a-3 Reporting

(a) Each enterprise facilitation group that receives funding under K.S.A. 74-50,154(c)(1), and amendments thereto, shall submit the following reports to the secretary:

(1) Quarterly progress reports, which shall be submitted on or before January 10, April 10, July 10, and October 10 of each year, on a form prescribed by the secretary. Each report shall contain the following information for that quarter:

(A) The number of new jobs created by the enterprise facilitation group;

(B) the number of new businesses created;

(D) the number of expanded businesses; and

(2) an annual report, which shall be submitted no later than 30 days after each transfer of funds as required by K.S.A. 74-50,154(c)(1), and amendments thereto. Each report shall contain the following information:

(A) For the past year, identification of each county participating in each project, the amount of funding contributed, and any anticipated changes in county participation;

(B) an overview of the EF group's activities during the past year;

(D) a list of the perceived strengths of each project in terms of assisting entrepreneurs;

(E) any areas that the enterprise facilitation group desires to improve;

(F) the budget for the upcoming year; and

(G) a list of current executive board members and contact information.

(c) If a quarterly or annual progress report is not timely received, any future EF funds may be withheld by the secretary until the reporting requirements are met.

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History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-50,154; effective July 25, 2008.)

Article 14 Individual Development Account Program Act

Kan. Admin. Regs. § 110-14-1 Allocation of tax credit to program contributors

(a) The amount of the approved tax credit for each program contributor shall be certified by the department. A certification shall be sent by the department to the program contributor. The department of revenue shall be notified by the secretary of each certified program contributor and of the amount of the approved tax credit for the program contributor.

(b) Each program contributor shall submit the certification specified in subsection (a) with the program contributor's tax return filed with the department of revenue. The tax credit shall be claimed for only the tax year in which the contribution was made.

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History

History: (Authorized by K.S.A. 2005 Supp. 74-50,203; implementing K.S.A. 2005 Supp. 74-50,208; effective Dec. 29, 2006.)

Kan. Admin. Regs. § 110-14-2 Tax credit

The maximum amount of tax credit that a community-based organization may receive each fiscal year shall not exceed $100,000. However, if the aggregate amount of requests for tax credit by community-based organizations is less than $500,000 as authorized by K.S.A. 74-50,208 and amendments thereto, additional tax credit may be awarded by the secretary to a qualified and previously approved community-based organization.

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History

History: (Authorized by K.S.A. 2005 Supp. 74-50,203; implementing K.S.A. 2005 Supp. 74-50,208; effective Dec. 29, 2006.)

Article 15 Kansas Energy Development Act; Refinery and Expanded Refinery Projects

Kan. Admin. Regs. § 110-15-1 Definitions

As used in this article, the following terms shall have the following meanings:

(a) "Act" means the Kansas energy development act, K.S.A. 79-32,216 et seq., and amendments thereto.

(b) "Amortizable costs" means any costs depreciable under title 26 of the United States Code of 1986.

(c) "Capacity" means the estimated maximum volume, measured in gallons, of processed crude oil and petroleum products that has been or could be produced from an existing or restored refinery.

(d) "Construction" means the manifest commencement of actual operations on a project site, including erecting a building, excavating the ground, and any similar work that a person with reasonable diligence can see and recognize as being done with the intention and purpose to continue work until the project is completed.

(e) "Department" means the Kansas department of commerce.

(f) "Expenditure" means any cost incurred in the normal course of business to generate revenues. This term shall include expenditures for engineering and architectural services and for real and tangible personal property made for the construction of a new refinery, expansion of an existing refinery, or restoration of production of a refinery.

(g) "Out of production" means that no commercial crude oil processing or refinement into petroleum products has taken place five or more years before the date of an application submitted under the act.

(h) "Placed in service," when used to describe a date, means the date on which an asset is placed into service. This date is considered to be when the asset is in a condition of readiness and availability for a specifically assigned function.

(i) "Project" means a new refinery, an expanded refinery, or a refinery whose production has been restored.

(j) "Qualified investment" has the meaning specified in K.S.A. 79-32,217, and amendments thereto. This term shall not include expenditures financed, in whole or in part, by public funds or grants or by any similar type of financial assistance.

(k) "Real property" means land and real estate. This term shall include not only the land itself but also all buildings, fixtures, improvements, mines, minerals, quarries, mineral springs, and wells.

(l) "Secretary" means the secretary of the Kansas department of commerce.

(m) "Tangible investment" means an investment in tangible personal or real property.

(n) "Taxpayer" means an applicant for tax benefits or a recipient of tax benefits under the act.

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History

History: (Authorized by K.S.A. 2006 Supp. 74-5002r and K.S.A. 2006 Supp. 79-32,218, as amended by L. 2007, ch. 113, sec. 24; implementing K.S.A. 2006 Supp. 79-32,217, K.S.A. 2006 Supp. 79-32,218, as amended by L. 2007, ch. 113, sec. 24, and K.S.A. 2006 Supp. 79-32,220; effective, T-110-10-10-07, Oct. 10, 2007; effective Dec. 21, 2007.)

Kan. Admin. Regs. § 110-15-2 Application; additional documentation

(a) Each taxpayer that desires to obtain tax benefits under the act shall submit an application, on a form provided by the department, to the secretary for a determination of whether the taxpayer's project qualifies for tax benefits under the act. Each application shall include the following:

(1) Documentation including a detailed description of the project that is the subject of the application;

(2) a statement explaining how the proposed project meets the requirements set forth in the act;

(3) a project timeline and budget;

(4) adequate documentation that the taxpayer has satisfied the requirements set forth in the act;

(5) a statement describing in detail the ownership structure of the project, including the name of each legal entity and the entity's proportion of ownership interest, which shall be expressed as a percentage of the project; and

(6) any other relevant information required by the secretary to determine the eligibility of the taxpayer for tax benefits under the act.

(b) If any of the items specified in subsection (a) are not included or if the secretary requires additional information, the taxpayer shall be notified about the items or information required to be provided to the secretary before the secretary can make a determination on the eligibility of the taxpayer for tax benefits under the act.

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History

History: (Authorized by and implementing K.S.A. 2006 Supp. 79-32,218, as amended by L. 2007, ch. 113, sec. 24; effective, T-110-10-10-07, Oct. 10, 2007; effective Dec. 21, 2007.)

Kan. Admin. Regs. § 110-15-3 Secretary's review and determination

(a) Upon completion of the secretary's review of each application for tax benefits under the act, each taxpayer on whose behalf the application was submitted shall receive a written response containing a determination on the application or seeking further information.

(b) A determination on each application for tax benefits under the act shall be made by the secretary within 60 days of receipt of the information required by the act or K.A.R. 110-15-2, or both. If the secretary's written response seeks further information, the 60-day time frame established in this subsection shall be suspended beginning on the date on which the letter seeking additional information is mailed and through the date on which the additional information is received by the secretary.

(c) A copy of the secretary's determination shall be mailed to each taxpayer identified on the application as having an ownership interest in the project.

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History

History: (Authorized by and implementing K.S.A. 2006 Supp. 79-32,218, as amended by L. 2007, ch. 113, sec. 24; effective, T-110-10-10-07, Oct. 10, 2007; effective Dec. 21, 2007.)

Kan. Admin. Regs. § 110-15-4 Annual compliance and audit

In order to be eligible for annual installments of tax benefits available under the act, each taxpayer shall provide the secretary with all documentation necessary for the secretary to determine whether the taxpayer is in compliance with the agreement as required by K.S.A. 79-32,218, and amendments thereto, and any other requirements under the act. This documentation shall include the following:

(a) Records documenting the operation of the new, expanded, or restored refinery, including production records and any related documentation from which the secretary can determine whether the new, expanded, or restored refinery is in operation; and

(b) one copy of each pertinent federal tax return, state tax return, tax schedule, and any related documentation pertaining to the operation of any facility for which tax benefits are sought pursuant to the act.

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History

History: (Authorized by and implementing K.S.A. 2006 Supp. 79-32,218, as amended by L. 2007, ch. 113, sec. 24; effective, T-110-10-10-07, Oct. 10, 2007; effective Dec. 21, 2007.)

Article 16 Kansas Energy Development Act; New Qualifying Pipeline Projects

Kan. Admin. Regs. § 110-16-1 Definitions

As used in these regulations, the following terms shall have the following meanings:

(a) "Access for state refineries" means that refineries or natural gas liquid processing facilities existing in Kansas before an application for benefits is submitted under the act shall have direct or indirect access through a mechanism to ensure the efficient transportation of crude or processed oil to the pipeline for which an application for tax benefits has been submitted.

(b) "Act" means the Kansas energy development act, K.S.A. 79-32,216 et seq., and amendments thereto.

(d) "Capacity" means the estimated maximum volume, measured in gallons, of crude oil or natural gas liquids that has been or could be transported from a pipeline located in this state.

(e) "Construction" means the manifest commencement of actual operations on a project site, including erecting a building, excavating the ground, and any similar work that a person with reasonable diligence can see and recognize as being done with the intention and purpose to continue work until the project is completed.

(f) "Department" means the Kansas department of commerce.

(g) "Expenditure" means any cost incurred in the normal course of business to generate revenues. This term shall include expenditures for engineering and architectural services and for real and tangible personal property made for the construction of a new qualifying pipeline.

(i) "Project" means a new qualifying pipeline.

(j) "Qualified investment" has the meaning specified in K.S.A. 79-32,223, and amendments thereto. This term shall not include any expenditures financed, in whole or in part, by public funds or grants or by any similar type of financial assistance.

(k) "Real property" means land and real estate. This term shall include not only the land itself but also all buildings, fixtures, improvements, mines, minerals, quarries, mineral springs, and wells.

(l) "Secretary" means the secretary of the Kansas department of commerce.

(m) "Tangible investment" means an investment in tangible personal or real property.

(n) "Taxpayer" means an applicant for tax benefits or a recipient of tax benefits under the act.

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History

History: (Authorized by K.S.A. 2006 Supp. 74-5002r and K.S.A. 2006 Supp. 79-32,224, as amended by L. 2007, ch. 113, sec. 25; implementing K.S.A. 2006 Supp. 79-32,223 and K.S.A. 2006 Supp. 79-32,224, as amended by L. 2007, ch. 113, sec. 25; effective, T-110-10-10-07, Oct. 10, 2007; effective Dec. 21, 2007.)

Kan. Admin. Regs. § 110-16-2 Application; additional documentation

(1) Documentation including a detailed description of the project that is the subject of the application;

(2) a statement explaining how the proposed project meets the requirements set forth in the act;

(3) a project timeline and budget;

(4) adequate documentation that the taxpayer has satisfied the requirements set forth in the act;

(5) a statement describing in detail the ownership structure of the project, including the name of each legal entity and the proportion of ownership interest, which shall be expressed as a percentage of the project; and

(6) any other relevant information required by the secretary to determine the eligibility of the taxpayer for tax benefits under the act.

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History

History: (Authorized by and implementing K.S.A. 2006 Supp. 79-32,224, as amended by L. 2007, ch. 113, sec. 25; effective, T-110-10-10-07, Oct. 10, 2007; effective Dec. 21, 2007.)

Kan. Admin. Regs. § 110-16-3 Secretary's review and determination

(b) A determination on each application for tax benefits under the act shall be made by the secretary within 60 days of receipt of the information required by the act or K.A.R. 110-16-2, or both. If the secretary's written response seeks further information, the 60-day time frame established in this subsection shall be suspended beginning on the date on which the letter seeking additional information is mailed and through the date on which the additional information is received by the secretary.

(c) A copy of the secretary's determination shall be mailed to each taxpayer identified on the application as having an ownership interest in the project.

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History

History: (Authorized by and implementing K.S.A. 2006 Supp. 79-32,224, as amended by L. 2007, ch. 113, sec. 25; effective, T-110-10-10-07, Oct. 10, 2007; effective Dec. 21, 2007.)

Kan. Admin. Regs. § 110-16-4 Annual compliance and audit

In order to be eligible for annual installments of tax benefits available under the act, each taxpayer shall provide the secretary with all documentation necessary for the secretary to determine whether the taxpayer is in compliance with the agreement as required by K.S.A. 79-32,224, and amendments thereto, and any other requirements under the act. This documentation shall include the following:

(a) Records documenting the operation of the new qualifying pipeline, including production records and any related documentation from which the secretary can determine whether the new qualifying pipeline is in operation; and

(b) one copy of each pertinent federal tax return, state tax return, tax schedule, and any related documentation pertaining to operation of any facility for which tax benefits are sought pursuant to the act.

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History

History: (Authorized by and implementing K.S.A. 2006 Supp. 79-32,224, as amended by L. 2007, ch. 113, sec. 25; effective, T-110-10-10-07, Oct. 10, 2007; effective Dec. 21, 2007.)

Article 17 Kansas Energy Development Act; Integrated Coal or Coke Gasification Nitrogen Fertilizer Plants

Kan. Admin. Regs. § 110-17-1 Definitions

As used in this article, the following terms shall have the following meanings:

(a) "Act" means the Kansas energy development act, K.S.A. 79-32,216 et seq., and amendments thereto.

(b) "Amortizable costs" means any costs depreciable under title 26 of the United States Code of 1986.

(c) "Availability of Kansas coal" means that amount of coal from Kansas that, at the secretary's discretion, is available for use in an economically practicable manner in an integrated coal gasification nitrogen fertilizer plant.

(d) "Capacity" means the amount of nitrogen fertilizer, measured in pounds, that has been or could be produced from an existing coal or coke gasification nitrogen fertilizer plant.

(f) "Department" means the Kansas department of commerce.

(i) "Project" means a new integrated coal or coke gasification nitrogen fertilizer plant or the expansion of an existing integrated coal or coke gasification nitrogen fertilizer plant.

(j) "Qualified investment" has the meaning specified in K.S.A. 79-32,228, and amendments thereto. This term shall not include any expenditures financed, in whole or in part, by public funds or grants or by any similar type of financial assistance.

(k) "Real property" means land and real estate. This term shall include not only the land itself but also all buildings, fixtures, improvements, mines, minerals, quarries, mineral springs, and wells.

(l) "Secretary" means the secretary of the Kansas department of commerce.

(m) "Tangible investment" means an investment in tangible personal or real property.

(n) "Taxpayer" means an applicant for tax benefits or a recipient of tax benefits under the act.

(o) "Tipple" means a structure where coal is cleaned and loaded in railroad cars or trucks or any other form of transportation.

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History

History: (Authorized by K.S.A. 2006 Supp. 74-5002r and K.S.A. 2006 Supp. 79-32,229, as amended by L. 2007, ch. 113, sec. 26; implementing K.S.A. 2006 Supp. 79-32,228, K.S.A. 2006 Supp. 79-32,229, as amended by L. 2007, ch. 113, sec. 26, and K.S.A. 2006 Supp. 79-32,231; effective, T-110-10-10-07, Oct. 10, 2007; effective Dec. 21, 2007.)

Kan. Admin. Regs. § 110-17-2 Application; additional documentation

(1) Documentation including a detailed description of the project that is the subject of the application;

(2) a statement explaining how the proposed project meets the requirements set forth in the act;

(3) a project timeline and budget;

(4) adequate documentation that the taxpayer has satisfied the requirements set forth in the act;

(6) any other relevant information required by the secretary to determine the eligibility of the taxpayer for tax benefits under the act.

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History

History: (Authorized by and implementing K.S.A. 2006 Supp. 79-32,229, as amended by L. 2007, ch. 113, sec. 26; effective, T-110-10-10-07, Oct. 10, 2007; effective Dec. 21, 2007.)

Kan. Admin. Regs. § 110-17-3 Secretary's review and determination

(b) A determination on each application for tax benefits under the act shall be made by the secretary within 60 days of receipt of the information required by the act or K.A.R. 110-17-2, or both. If the secretary's written response seeks further information, the 60-day time frame established in this subsection shall be suspended beginning on the date on which the letter seeking additional information is mailed and through the date on which the additional information is received by the secretary.

(c) A copy of the secretary's determination shall be mailed to each taxpayer identified on the application as having an ownership interest in the project.

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History

History: (Authorized by and implementing K.S.A. 2006 Supp. 79-32,229, as amended by L. 2007, ch. 113, sec. 26; effective, T-110-10-10-07, Oct. 10, 2007; effective Dec. 21, 2007.)

Kan. Admin. Regs. § 110-17-4 Annual compliance and audit

In order to be eligible for annual installments of tax benefits available under the act, each taxpayer shall provide the secretary with all documentation necessary for the secretary to determine whether the taxpayer is in compliance with the agreement as required by K.S.A. 79-32,229, and amendments thereto, and any other requirements under the act. This documentation shall include the following:

(a) Records documenting the operation of the new, expanded, or integrated coal or coke gasification nitrogen fertilizer plant, including production records and any related documentation from which the secretary can determine whether the new, expanded, or integrated coal or coke gasification nitrogen fertilizer plant is in operation; and

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History

History: (Authorized by and implementing K.S.A. 2006 Supp. 79-32,229, as amended by L. 2007, ch. 113, sec. 26; effective, T-110-10-10-07, Oct. 10, 2007; effective Dec. 21, 2007.)

Article 18 Kansas Energy Development Act; Biomass to Energy Projects

Kan. Admin. Regs. § 110-18-1 Definitions

As used in these regulations, the following terms shall have the following meanings:

(a) "Act" means the Kansas energy development act, K.S.A. 79-32,216 et seq., and amendments thereto.

(b) "Amortizable costs" means any costs depreciable under title 26 of the United States Code of 1986.

(c) "Capacity" means the estimated amount, measured in gallons or British thermal units or their equivalent, that has been or could be produced from an existing or new biomass-to-energy plant.

(d) "Construction" means the manifest commencement of actual operations on a project site, including erecting a building, excavating the ground, and similar work that a person with reasonable diligence can see and recognize as being done with the intention and purpose to continue work until the project is completed.

(e) "Department" means the Kansas department of commerce.

(f) "Expenditure" means any cost incurred in the normal course of business to generate revenues. This term shall include expenditures for engineering and architectural services and for real and tangible personal property made for the construction of a new biomass-to-energy plant or the expansion of an existing biomass-to-energy plant.

(g) "Placed in service," when used to describe a date, means the date on which an asset is placed into service. This date is considered to be when the asset is in a condition of readiness and availability for a specifically assigned function.

(h) "Project" means a new or expanded biomass-to-energy plant.

(i) "Qualified investment" has the meaning specified in K.S.A. 79-32,233, and amendments thereto. This term shall not include any expenditures financed, in whole or in part, by public funds or grants or by any similar type of financial assistance.

(j) "Real property" means land and real estate. This term shall include not only the land itself but also all buildings, fixtures, improvements, mines, minerals, quarries, mineral springs, and wells.

(k) "Secretary" means the secretary of the Kansas department of commerce.

(l) "Tangible investment" means an investment in tangible personal or real property.

(m) "Taxpayer" means an applicant for tax benefits or a recipient of tax benefits under the act.

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History

History: (Authorized by K.S.A. 2006 Supp. 74-5002r and K.S.A. 2006 Supp. 79-32,234, as amended by L. 2007, ch. 113, sec. 28; implementing K.S.A. 2006 Supp. 79-32,233, as amended by L. 2007, ch. 113, sec. 27, K.S.A. 2006 Supp. 79-32,234, as amended by L. 2007, ch. 113, sec. 28, and K.S.A. 2006 Supp. 79-32,236; effective, T-110-10-10-07, Oct. 10, 2007; effective Dec. 21, 2007.)

Kan. Admin. Regs. § 110-18-2 Application; additional documentation

(1) Documentation including a detailed description of the project that is the subject of the application;

(2) a statement explaining how the proposed project meets the requirements set forth in the act;

(3) a project timeline and budget;

(4) adequate documentation that the taxpayer has satisfied the requirements set forth in the act;

(6) any other relevant information required by the secretary to determine the eligibility of the taxpayer for tax benefits under the act.

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History

History: (Authorized by and implementing K.S.A. 2006 Supp. 79-32,234, as amended by L. 2007, ch. 113, sec. 28; effective, T-110-10-10-07, Oct. 10, 2007; effective Dec. 21, 2007.)

Kan. Admin. Regs. § 110-18-3 Secretary's review and determination

(b) A determination on each application for tax benefits under the act shall be made by the secretary within 60 days of receipt of the information required by the act or K.A.R. 110-18-2, or both. If the secretary's written response seeks further information, the 60-day time frame established in this subsection shall be suspended beginning on the date on which the letter seeking additional information is mailed and through the date on which the additional information is received by the secretary.

(c) A copy of the secretary's determination shall be mailed to each taxpayer identified on the application as having an ownership interest in the project.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2006 Supp. 79-32,234, as amended by L. 2007, ch. 113, sec. 28; effective, T-110-10-10-07, Oct. 10, 2007; effective Dec. 21, 2007.)

Kan. Admin. Regs. § 110-18-4 Annual compliance and audit

In order to be eligible for annual installments of tax benefits awarded under the act, each taxpayer shall provide the secretary with all documentation necessary for the secretary to determine whether the taxpayer is in compliance with the agreement as required by K.S.A. 79-32,234, and amendments thereto, and any other requirements under the act. This documentation shall include the following:

(a) Records documenting the operation of the new or expanded biomass-to-energy plant, including production records and any related documentation from which the secretary can determine whether the new or expanded biomass-to-energy plant is in operation; and

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2006 Supp. 79-32,234, as amended by L. 2007, ch. 113, sec. 28; effective, T-110-10-10-07, Oct. 10, 2007; effective Dec. 21, 2007.)

Article 19 Kansas Energy Development Act; Renewable Electric Cogeneration Facility Projects

Kan. Admin. Regs. § 110-19-1 Definitions

As used in this article, the following terms shall have the following meanings:

(a) "Act" means the Kansas energy development act, K.S.A. 79-32,216 et seq., and amendments thereto.

(b) "Amortizable costs" means any costs depreciable under title 26 of the United States Code of 1986.

(c) "Construction" means the manifest commencement of actual operations at a new renewable electric cogeneration facility site, including erecting a building, excavating the ground, installing equipment, and any similar work that a person with reasonable diligence can see and recognize as being done with the intention and purpose to continue work until the project is completed.

(d) "Department" means the Kansas department of commerce.

(e) "Expenditure" means any cost incurred in the normal course of business to generate revenues. This term shall include expenditures for engineering and architectural services and for real and tangible personal property made for the construction of a new renewable electric cogeneration facility.

(f) "Industrial, commercial, or agricultural process" means any activity conducted for a profit and primarily involved with any of the following:

(1) The manufacturing process resulting in the making of a product suitable for use;

(2) the retail, wholesale, or other distribution of a product or service;

(3) the practice of cultivating the soil, producing crops, or raising livestock; or

(4) the preparation and marketing of the products resulting from any activity specified in paragraph (f)(1), (2), or (3).

(g) "Operation" means the use of equipment to produce electricity resulting in the displacement of current electrical use or providing for future electrical use.

(h) "Placed in service," when used to describe a date, means the date on which a new renewable electric cogeneration facility is placed into service. This date is considered to be when the new renewable electric cogeneration facility is in a condition of readiness and availability for its specifically assigned function.

(i) "Project" means a new renewable electric cogeneration facility, as defined in K.S.A. 79-32,245 and amendments thereto.

(j) "Qualified investment" has the meaning specified in K.S.A. 79-32,245, and amendments thereto. This term shall not include expenditures financed, in whole or in part, by public funds or grants or by any similar type of financial assistance.

(k) "Real property" means land and real estate. This term shall include not only the land itself but also all buildings, fixtures, and improvements.

(l) "Renewable energy resources technologies" has the meaning specified in K.S.A. 79-201, and amendments thereto.

(m) "Secretary" means the secretary of the Kansas department of commerce.

(n) "Tangible investment" means an investment in tangible personal or real property.

(o) "Taxpayer" means an applicant for tax benefits or a recipient of tax benefits under the act.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-5002r and K.S.A. 2007 Supp. 79-32,246; implementing K.S.A. 2007 Supp. 79-32,246, K.S.A. 2007 Supp. 79-32,247, and K.S.A. 2007 Supp. 79-32,248; effective July 25, 2008.)

Kan. Admin. Regs. § 110-19-2 Application; additional documentation

(1) Documentation including a detailed description of the project that is the subject of the application;

(2) a statement explaining how the proposed project meets the requirements set forth in the act;

(3) a project timeline and budget;

(4) adequate documentation that the taxpayer has satisfied the requirements set forth in the act;

(6) any other relevant information required by the secretary to determine the eligibility of the taxpayer for tax benefits under the act.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 79-32,246; effective July 25, 2008.)

Kan. Admin. Regs. § 110-19-3 Secretary's review and determination

(b) A determination on each application for tax benefits under the act shall be made by the secretary within 60 days of receipt of the information required by the act or K.A.R. 110-19-2, or both. If the secretary's written response seeks further information, the 60-day time frame established in this subsection shall be suspended beginning on the date on which the letter seeking additional information is mailed and through the date on which the additional information is received by the secretary.

(c) A copy of the secretary's determination shall be mailed to each taxpayer identified on the application as having an ownership interest in the project.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 79-32,246; effective July 25, 2008.)

Kan. Admin. Regs. § 110-19-4 Annual compliance and audit

In order to be eligible for annual installments of tax benefits available under the act, each taxpayer shall provide the secretary with all documentation necessary for the secretary to determine whether the taxpayer is in compliance with the agreement as required by K.S.A. 79-32,246, and amendments thereto, and any other requirements under the act. This documentation shall include the following:

(a) Records documenting the operation of the new renewable electric cogeneration facility, including production records and any related documentation from which the secretary can determine whether the new renewable electric cogeneration facility is in operation; and

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 79-32,246; effective July 25, 2008.)

Article 20 Kansas Energy Development Act; Storage and Blending Equipment Projects

Kan. Admin. Regs. § 110-20-1 Definitions

As used in these regulations, the following terms shall have the following meanings:

(a) "Act" means the Kansas energy development act, K.S.A. 79-32,216 et seq., and amendments thereto.

(b) "Amortizable costs" means any costs depreciable under title 26 of the United States Code of 1986.

(1) Biodiesel;

(2) ethanol (ethyl alcohol); or

(3) any other biofuel.

(d) "Construction or installation" means the manifest commencement of work on a project site, including either of the following:

(1) Performing any of the following at a fuel terminal, refinery, or biofuel production plant:

(A) Erecting a building;

(B) excavating the ground; or

(2) performing any similar work that a person with reasonable diligence can see and recognize as being done with the intention and purpose to continue work until the project is completed.

(e) "Department" means the Kansas department of commerce.

(f) "Expenditure" means any cost incurred in the normal course of business to generate revenues. This term shall include expenditures for engineering and architectural services and for real and tangible personal property made for the purchase, construction, or installation of storage and blending equipment.

(g) "Operation" means the use of storage and blending equipment to produce biofuels for distribution into the wholesale or retail markets.

(h) "Placed in service," when used to describe a date, means the date on which storage and blending equipment is placed into service. This date is considered to be when the storage and blending equipment is in a condition of readiness and availability for a specifically assigned function.

(i) "Project" means the construction or installation of storage and blending equipment at a fuel terminal, refinery, or biofuel production plant.

(j) "Qualified investment" has the meaning specified in K.S.A. 79-32,251, and amendments thereto. This term shall not include any expenditures financed, in whole or in part, by public funds or grants or by any similar type of financial assistance.

(k) "Secretary" means the secretary of the Kansas department of commerce.

(l) "Tangible investment" means an investment in tangible personal or real property.

(m) "Taxpayer" means an applicant for tax benefits or a recipient of tax benefits under the act.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-5002r and K.S.A. 2007 Supp. 79-32,252; implementing K.S.A. 2007 Supp. 79-32,251 and K.S.A. 2007 Supp. 79-32,252; effective July 25, 2008.)

Kan. Admin. Regs. § 110-20-2 Application; additional documentation

(1) Documentation including a detailed description of the project that is the subject of the application;

(2) a statement explaining how the proposed project meets the requirements set forth in the act;

(3) a project timeline and budget;

(4) adequate documentation that the taxpayer has satisfied the requirements set forth in the act;

(6) any other relevant information required by the secretary to determine the eligibility of the taxpayer for tax benefits under the act.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 79-32,252; effective July 25, 2008.)

Kan. Admin. Regs. § 110-20-3 Secretary's review and determination

(b) A determination on each application for tax benefits under the act shall be made by the secretary within 60 days of receipt of the information required by the act or K.A.R. 110-20-2, or both. If the secretary's written response seeks further information, the 60-day time frame established in this subsection shall be suspended beginning on the date on which the letter seeking additional information is mailed and through the date on which the additional information is received by the secretary.

(c) A copy of the secretary's determination shall be mailed to each taxpayer identified on the application as having an ownership interest in the project.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 79-32,252; effective July 25, 2008.)

Kan. Admin. Regs. § 110-20-4 Annual compliance and audit

In order to be eligible for annual installments of tax benefits available under the act, each taxpayer shall provide the secretary with all documentation necessary for the secretary to determine whether the taxpayer is in compliance with the agreement as required by K.S.A. 79-32,252, and amendments thereto, and any other requirements under the act. This documentation shall include the following:

(a) Recrds documenting the use of the storage and blending equipment to produce biofuels for distribution into the wholesale or retail markets, including production records and any related documentation from which the secretary can determine whether the storage and blending equipment is in operation; and

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 79-32,252; effective July 25, 2008.)

Article 21 Promoting Employment Across Kansas (PEAK) Program

Kan. Admin. Regs. § 110-21-1 Definitions

For the purposes of these regulations and the act, the following terms and definitions shall apply:

(a) "Adequate health insurance coverage" means health insurance that is offered by a company to all full-time employees within the first 180 days of their employment and provides for the following:

(1) At least 50 percent of the premium paid by the employer;

(2) coverage of basic hospital care and procedures;

(3) coverage of physician care;

(4) coverage for mental health care;

(5) coverage for substance abuse treatment;

(6) coverage for prescription drugs; and

(7) coverage for prenatal and postnatal care.

(b) "Administrative or back office" means a business facility that meets the following requirements:

(1) Is operated by a company;

(2) provides ancillary support services to the company, but is not directly engaged in the company's primary function;

(3) generates only de minimis outside revenue at the facility; and

(4) is capable of being located anywhere geographically.

(d) "Agreement date" means the date the department of commerce receives a company's application.

(e) "Applicant" means a company that has submitted an application to the secretary for determination of eligibility under the act.

(f) "Base employment level" means the average number of full-time employees in addition to any part-time employees calculated as full-time equivalent positions working 2,080 hours annually that existed in Kansas in the 12 months before the agreement date.

(g) "Benefit period" means the period of time during which a qualified company shall be authorized to retain withholding taxes for PEAK-eligible jobs.

(h) "Business facility" means each physical location in Kansas where any located, relocated, or expanded functions will be performed.

(i) "Effective date" means the date the benefit period commences. The effective date shall meet the following requirements:

(1) Be established by the qualified company in writing;

(2) be within one year of the date of the agreement; and

(3) begin on the first day of a calendar quarter.

(j) "Full-time employment" means an average of at least 35 hours per week for 52 consecutive weeks.

(k) "Functions" means the activities of a business facility, office, department, or other operation, including a unit or production line.

(l) "Headquarters" means the location of a business facility that meets the following requirements:

(1) Physically houses principal officers of the business;

(2) is where primary direction, management, and administrative support for company operations are provided;

(3) serves multiple company work sites internationally, nationally, or regionally within the United States;

(4) generates only de minimis outside revenue; and

(5) is capable of being located anywhere geographically.

(m) "Located or relocated functions" means functions that are being initially located or relocated to Kansas.

(n) "PEAK" means promoting employment across Kansas.

(o) "PEAK benefits" means the payroll withholding taxes authorized to be retained by a qualified company.

(p) "PEAK-eligible jobs" means PEAK jobs that are being paid at least the county median wage for the county in which the business facility is located and for which PEAK benefits are received.

(q) "PEAK job" means an employee-occupied job performing a located, relocated, or expanded function. PEAK jobs are used to satisfy program eligibility requirements including minimum jobs and wage standard comparison.

(r) "PEAK jobs' median wage" means the middle wage of the total number of wages that divides the PEAK jobs into two equal groups, half having wages above the median wage and half having wages below the median wage. This term is used to determine initial eligibility for benefits, continued eligibility, and extended benefit periods.

(s) "Wages" has the meaning specified in K.S.A. 79-3295 and amendments thereto.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2010 Supp. 74-5002r and K.S.A. 2010 Supp. 74-50,213; implementing K.S.A. 2010 Supp. 74-50,211; effective April 29, 2011.)

Kan. Admin. Regs. § 110-21-2 Eligibility and application requirements

(a) Companies shall submit applications and any supporting documentation to the secretary to determine eligibility for benefits. In addition to meeting the requirements in the act, each applicant shall meet the following requirements:

(1) The application shall be submitted before any position for which PEAK benefits are requested may be filled.

(2) The PEAK jobs' median wage shall meet or exceed the annual county median wage as reported by the department of labor in its annual report for the previous year for the county in which the business facility is located on the date the department receives the application.

(3) The company shall locate, relocate, or expand the minimum number of required jobs within two years from the agreement date.

(4) If an applicant applies as a headquarters, the business facility shall meet the definition of a headquarters.

(5) If applicant is applying as an administrative or back office, the business facility shall meet the definition of an administrative or back office.

(b) The application shall include the following:

(1) The applicant's legal name and address;

(2) The applicant's North American industry classification system (NAICS) category;

(3) the federal employer identification number (FEIN);

(4) the physical address, contact information, NAICS category, and FEIN for all related entities, including the following:

(A) The corporate headquarters;

(B) the parent company;

(D) any existing Kansas work sites;

(5) the type of ownership structure for the business facility;

(6) a description of the function to be located, relocated, or expanded, including evidence of relocation satisfactory to the secretary;

(7) a description of the company's products or services and its customers;

(8) the hire or start date in Kansas for PEAK jobs;

(9) the identification of any third-party legal employer;

(10) the projected total number of PEAK jobs, including how many of those jobs are PEAK-eligible jobs;

(11) the projected hiring schedule of PEAK jobs over five years;

(12) the median wage of the PEAK jobs;

(13) the total project capital investment, including leases;

(14) the base employment level if relocating to or expanding at an existing Kansas company or work site;

(15) the job title, description, number of positions, Kansas start or hire date, wages per hour, number of hours worked per week, and total annual wages for PEAK jobs;

(16) if applicable, information regarding whether the applicant is performing either of the following:

(A) Locating, relocating, or expanding a company's headquarters; or

(B) locating, relocating, or expanding an administrative or back office;

(17) certification that the applicant is "for-profit" unless applying as a headquarters or an administrative or back office;

(18) certification that the applicant will provide adequate health insurance coverage;

(19) certification that the applicant is not under the protection of the federal bankruptcy code;

(20) certification that the applicant is not delinquent on any federal, state, or local taxes;

(21) if applicable, payroll service company information as requested;

(22) an ownership disclosure and signature statement;

(23) the written authorization to inspect company records for verification of employment and wages;

(24) the certification by a company officer that the information provided in the application is true and accurate; and

(25) any other relevant information that the secretary deems necessary.

(c) If the application is approved by the secretary, the qualified company shall enter into an agreement with the secretary before receiving benefits.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2010 Supp. 74-5002r and K.S.A. 2010 Supp. 74-50,213; implementing K.S.A. 2010 Supp. 74-50,213; effective April 29, 2011.)

Kan. Admin. Regs. § 110-21-3 Reconsideration of application

(a) If an application is not approved, the reasons for the denial shall be provided to the applicant by the secretary. The applicant may ask the secretary for reconsideration of the decision within 30 days of the date of denial of the application.

(b) Decisions on reconsideration shall be the final agency action and subject to review under the Kansas judicial review act, K.S.A. 77-601 et seq. and amendments thereto.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2010 Supp. 74-5002r and K.S.A. 2010 Supp. 74-50,213; implementing K.S.A. 2010 Supp. 74-50,213; effective April 29, 2011.)

Kan. Admin. Regs. § 110-21-4 Agreement

(a) If an applicant meets the eligibility requirements and is approved by the secretary, the applicant shall be considered to be a qualified company. An agreement may be entered into by the secretary as to the terms and conditions by which the qualified company may receive benefits.

(b) The agreement shall be on a form prescribed by the department and, in addition to the requirements of the act, shall include the following:

(1) A description of the project;

(2) the length of the benefit period;

(3) the number of PEAK jobs, including projected PEAK jobs' median wage;

(4) the quarterly and annual reporting requirements;

(5) the agreement date;

(6) the county median wage for the business facility on the date the application is received by the department;

(7) an acknowledgement that the qualified company is ineligible to participate in other economic programs as listed in the act;

(8) the terms of default and conditions of repayment;

(9) a condition that the qualified company has one year from the agreement date to establish in writing an effective date;

(10) a condition that the qualified company shall satisfy program eligibility requirements and pay an average annual PEAK jobs' median wage greater than the county median wage in order to remain eligible for program benefits;

(11) a condition that the qualified company has two years from the agreement date to fill the minimum number of PEAK jobs necessary for program eligibility;

(12) a condition that the benefit period may be extended if the qualified company pays an average annual PEAK jobs' median wage of at least 110 percent as compared to the county median wage on the agreement date for each year that the company is in the program; and

(13) an acknowledgement that the qualified company receiving high-impact benefits that fails to create 100 or more jobs within two years of the agreement date shall have its benefit period reduced accordingly.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2010 Supp. 74-5002r and K.S.A. 2010 Supp. 74-50,213; implementing K.S.A. 2010 Supp. 74-50,213; effective April 29, 2011.)

Kan. Admin. Regs. § 110-21-5 Reporting requirements

(a) Each qualified company shall file quarterly and annual reports for the term of the agreement. The quarterly reports shall be due within 30 days from the end of each calendar quarter following the effective date. One year after the effective date, the qualified company shall provide an annual report summarizing the quarterly report data. The annual report shall be due within 30 days of each subsequent effective date.

(b) Each quarterly report and each annual report shall include the following:

(1) The company name, address, and federal employer identification number;

(2) the PEAK agreement number;

(3) the effective date;

(4) the reporting period; and

(5) the PEAK jobs' median wage for the period.

(1) The job title;

(2) the employee's name;

(3) the last four digits of the social security number or position number;

(4) the date hired in Kansas and, if applicable, the date terminated;

(5) the wages paid per hour;

(6) the number of hours worked per week; and

(7) the total wages for the quarter.

(d) Each quarterly report shall include the following for all PEAK jobs:

(1) The individual amount of payroll withholding tax retained and the amount remitted to the department of revenue for each PEAK job;

(2) the total amount of payroll withholding tax retained and remitted to department of revenue for all PEAK jobs during the period; and

(3) any other relevant information as deemed necessary by the secretary, including the following:

(A) A copy of the qualified company's Kansas department of labor quarterly wage report and unemployment return, form K-CNS 100, for the period; and

(B) a copy of the qualified company's department of revenue monthly Kansas withholding tax deposit reports, form KW-5, for the period.

(e) Each annual report shall include the following:

(1) Total wages of PEAK jobs and PEAK-eligible jobs;

(2) the annual average number of PEAK jobs and how many of those jobs are PEAK-eligible jobs;

(3) the total payroll withholding taxes remitted to the department of revenue for the PEAK jobs and a separate total of five percent remitted for PEAK-eligible jobs;

(4) the total PEAK benefits for PEAK-eligible jobs for the period;

(5) the total capital investment for the period;

(6) the qualified company's certification that it continues to meet program eligibility requirements, including supplying requested documentation; and

(7) a copy of the company's department of revenue annual withholding tax deposit report, KW-3 form, as filed during the period.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2010 Supp. 74-5002r and K.S.A. 2010 Supp. 74-50,213; implementing K.S.A. 2010 Supp. 74-50,213; effective April 29, 2011.)

Article 22 Student Loan Repayment Program

Kan. Admin. Regs. § 110-22-1 Definitions

As used in these regulations and for purposes of administering the act, the following terms shall have the meanings specified in this regulation: (a) "Act" means the rural opportunity zone act, L. 2011, ch. 22 and amendments thereto.

(b) "County" means a county listed as a "rural opportunity zone" in L. 2011, ch. 22, sec. 1(b), and amendments thereto.

(d) "Domicile" means the physical location where an individual intends to permanently reside. The following factors may be considered in determining whether or not an individual meets the eligibility requirements of the act, although none of these factors by itself shall be a determinant of domicile:

(1) Acceptance or an offer of permanent employment;

(2) admission to a licensed practicing profession in Kansas;

(3) registration of a vehicle in a county designated by the act;

(4) the location at which the individual votes or is registered to vote;

(5) a Kansas driver's license; and

(6) lease of living quarters or ownership of a home in a county designated by the act.

(e) "Eligible participant" means an individual who has met all eligibility requirements of the act.

(f) "Participating county" means a county, as defined in this regulation, that has enacted a resolution to participate in the student loan repayment program as specified in L. 2011, ch. 22, sec. 3, and amendments thereto.

(g) "Student loan repayment program" means the program specified in L. 2011, ch. 22, sec. 3, and amendments thereto.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by L. 2011, ch. 22, sec. 3 and K.S.A. 2010 Supp. 74-5002r; implementing L. 2011, ch. 22, secs. 1 and 3; effective, T-110-7-5-11, July 5, 2011; effective Oct. 28, 2011.)

Kan. Admin. Regs. § 110-22-2 Application for student loan repayment program

(a) Each applicant shall submit the application and any supporting documentation to the secretary to determine eligibility for the student loan repayment program.

(b) Each application shall contain the following for each applicant:

(1) Name;

(2) telephone and electronic mail address;

(3) current address and, if different, intended address;

(4) social security number;

(5) county of current residence or future intended domicile;

(6) list of all addresses where the applicant has resided during the five years immediately preceding the date of application;

(7) list of previous employers' names and addresses for the five years immediately preceding the date of application;

(8) prospective employer's name, address, and county;

(9) if applicable, proof of degree earned;

(10) anticipated date for moving to the county;

(11) a short description of why the individual intends to move to the county;

(12) if applicable, proof of a Kansas professional license;

(13) if applicable, the balance of each student loan on the date of submission of the application and the name and address of each loan institution; and

(14) any other relevant information that the secretary deems necessary.

(c) Notification that the applicant has applied for the student loan repayment program shall be electronically forwarded by the department to the county designated in that application.

(d) The county may, within 15 days of the department's electronic notification, provide any supplementary information regarding the applicant to the department for consideration.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by L. 2011, ch. 22, sec. 3 and K.S.A. 2010 Supp. 74-5002r; implementing L. 2011, ch. 22, sec. 3; effective, T-110-7-5-11, July 5, 2011; effective Oct. 28, 2011.)

Kan. Admin. Regs. § 110-22-3 Determination of eligibility

(a) A preliminary determination of whether each applicant is eligible to participate in student loan repayment program shall be made by the secretary.

(b) For each preliminary determination of eligibility, the applicant and the county shall be notified by the department.

(c) If the applicant is initially approved as eligible, the applicant and the county shall be provided by the secretary with a preliminary determination setting forth the conditions for final program eligibility.

(d) Final program eligibility shall be conditioned upon applicant's submission of all requested documentation to the department, including the following:

(1) Student loan documents;

(2) transcript for an associate, bachelor's, or postgraduate degree; and

(3) proof of having established domicile in the participating county.

(e) If the applicant meets the requirements for preliminary determination, a determination of final eligibility for the resident individual to participate in the student loan repayment program shall be issued by the secretary.

(f) Any applicant or county may appeal a preliminary or final determination of eligibility by the secretary as specified in these regulations.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by L. 2011, ch. 22, sec. 3 and K.S.A. 2010 Supp. 74-5002r; implementing L. 2011, ch. 22, sec. 3; effective, T-110-7-5-11, July 5, 2011; effective Oct. 28, 2011.)

Kan. Admin. Regs. § 110-22-4 Appeal process

(a) If an application for preliminary determination is not approved or if final eligibility determination is denied, each reason for the denial shall be provided in writing to the applicant by the secretary. The applicant may ask for reconsideration of either the preliminary determination or final eligibility determination within 30 calendar days after the date of the decision. If the applicant does not ask for reconsideration within 30 calendar days of the date of the decision, the decision shall become a final agency action. The county shall be notified of any application denied by the secretary.

(b) The county may ask for reconsideration of the decision of the secretary within 30 calendar days after the date of either the preliminary determination or final eligibility determination. If the county does not ask for reconsideration within 30 calendar days of the date of the secretary's decision, the decision shall become a final agency action.

(c) Each decision on reconsideration shall be the final agency action and shall be subject to review under the Kansas judicial review act, K.S.A. 77-601 et seq. and amendments thereto.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by L. 2011, ch. 22, sec. 3 and K.S.A. 2010 Supp. 74-5002r; implementing L. 2011, ch. 22, sec. 3; effective, T-110-7-5-11, July 5, 2011; effective Oct. 28, 2011.)

Kan. Admin. Regs. § 110-22-5 Resolution by county; intent to participate in student loan repayment program

(a) As required by the act, each county intending to participate in the student loan repayment program shall provide the department with a copy of the county resolution. The county resolution shall contain the following statements:

(1) The county is listed as a rural opportunity zone, as defined by L. 2011, ch. 22, sec. 1 and amendments thereto.

(2) The county is obligated to participate in the student loan repayment program for an enrollment period of five years.

(3) The county obligation to each eligible participant is for a repayment period of five years.

(4) The county agrees to pay, with the state of Kansas, equal shares of the outstanding student loan balance of any eligible participant.

(5) The student loan balance for each eligible participant, in an amount not to exceed $15,000, will be repaid jointly by the county and the state of Kansas for a period of five years.

(6) The county will allocate monies for the purpose of matching payments from the state of Kansas to eligible participants.

(7) The county will revise its student loan repayment budget on an annual basis and inform the department of any changes to the annual allocation.

(b) Each resolution shall be published once in the official county newspaper and shall be in effect from the date of its publication.

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History

History: (Authorized by L. 2011, ch. 22, sec. 3 and K.S.A. 2010 Supp. 74-5002r; implementing L. 2011, ch. 22, sec. 3; effective, T-110-7-5-11, July 5, 2011; effective Oct. 28, 2011.)

Kan. Admin. Regs. § 110-22-6 Repayment of outstanding student loan balance

(a) Each participating county shall transmit funds to the department for repayment of the student loan within 30 calendar days after the end of each calendar year. Each participating county and each eligible participant shall be notified by the department of receipt of the funds.

(b) The following shall be performed by the department:

(1) Transmission of the state funds and participating county funds to the lending institution for repayment of each eligible participant's student loan;

(2) payment to the lending institution of the student loan repayment funds, which shall be within 30 calendar days of receipt of funds from the participating county; and

(3) notification to each participating county and eligible participant of the transmitted student loan payment.

(c) Repayment of student loan funds may be made directly to the eligible participant if both of the following conditions are met:

(1) The student loan has been paid in full during the preceding 12 months.

(2) The eligible participant has no other student loan debt.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by L. 2011, ch. 22, sec. 3 and K.S.A. 2010 Supp. 74-5002r; implementing L. 2011, ch. 22, sec. 3; effective Oct. 28, 2011.)

Article 40 Kansas Export Finance Act

Kan. Admin. Regs. § 110-40-1 Definitions

(a) "Department" means the Kansas department of commerce.

(b) "Review committee" means the Kansas export loan guarantee review committee within the department.

(c) "Director's office" means the office of the export finance director, within the trade development division of the department.

(d) "Eximbank" means the Export-Import Bank of the United States.

(e) "Exporter" means a business concern, incorporated or unincorporated, which sells, leases, or proposes to sell or lease Kansas goods or services destined for shipment, resale, or use outside the United States.

(f) "Financial assistance" means insurance, co-insurance, reinsurance, or guarantees for loans or credits extended to an exporter for pre-export credit needs or post-export credit needs or both.

(g) "Kansas goods or services" means goods or services manufactured, processed, or originated in Kansas or which contain substantial Kansas-source components, labor, or intellectual property.

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History

History: (Authorized by K.S.A. 1989 Supp. 74-5071; implementing K.S.A. 1989 Supp. 74-5071, effective Oct. 8, 1990.)

Kan. Admin. Regs. § 110-40-2 Availability and form of financial assistance from the Kansas department of commerce

(a) Financial assistance shall be available from the department to support the pre-export credit needs or post-export credit needs or both of exporters with respect to Kansas export transactions where:

(1) credit or loans may otherwise not be made available;

(2) there are reasonable risks; and

(3) there is sufficient likelihood of repayment.

(b) Financial assistance may be in the form of insurance, co-insurance, reinsurance, or guarantee of a loan or the credit extended to exporters by Kansas financial institutions.

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History

History: (Authorized by K.S.A. 1989 Supp. 74-5071; implementing K.S.A. 1989 Supp. 74-5071 and 74-5073; effective Oct. 8, 1990.)

Kan. Admin. Regs. § 110-40-3 Application content

Application forms shall be available from the director's office for use by exporters or lenders in seeking financial assistance. The application forms shall set forth the information necessary for the determination of the eligibility of a Kansas export transaction for financial assistance and shall require, among other things: (a) with respect to the exporting company:

(1) a description and history of the exporting company;

(2) a resume of management experience; and

(3) financial statements;

(b) with respect to the underlying Kansas export transaction:

(1) a description of the products to be manufactured or processed, or services to be supplied, or both;

(2) a description of the Kansas content of the products or services;

(3) an estimate of additional employment that will occur as a result of the transaction;

(4) the destination of the products or services, or both;

(5) income and expense projections;

(6) a description of the foreign purchaser and the past experience of the exporter with the foreign purchaser;

(7) an outline of the expected commercial terms of sale and proposed terms of payment; and

(1) the dollar amount;

(2) the term;

(3) the interest rate;

(4) the banking fees; and

(5) a description of collateral and other security.

Any additional information necessary to make a determination and which is reasonably related to the criteria for approval in KAR 110-40-5 and KAR 110-40-6 may be required by the director's office.

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History

History: (Authorized by K.S.A. 1989 Supp. 74-5071; implementing K.S.A. 1989 Supp. 74-5071, 74-5072, and 74-5073; effective Oct. 8, 1990.)

Kan. Admin. Regs. § 110-40-4 Application procedure

(a) Application forms. The completed application forms with all required exhibits and attachments shall be submitted to the director's office.

(b) Application fee. An application fee as provided in K.S.A. 1989 Supp. 74-5072(c) shall be paid by certified check payable to the department. The certified check shall accompany the completed application form submitted to the director's office. The fee shall not be refundable.

(c) Initial review and consideration by the director's office. The application shall be reviewed by the director's office for completeness and the applicant shall be notified of any additional information required. When all required information has been received, the application shall be evaluated taking into account the purposes of the Kansas export finance act and the criteria and terms of KAR 110-40-5 and KAR 110-40-6. The application shall then be submitted by the director's office to the review committee together with the recommendation of the director's office for approval or denial.

(d) Denial of application. If the application is disapproved by the review committee, the applicant shall be notified by the director's office in writing of the reasons for denial.

(e) Approval of application. If the application is approved by the review committee, the applicant shall be notified by the director's office in writing.

(f) Misrepresentation by applicant. Any application may be rejected, any notice of approval may be revoked, or closure on the loan may be refused by the director's office if any information provided by the applicant contains a material misrepresentation or omission. Each applicant shall have an affirmative and continuing duty to update and correct all information provided to the director's office or to the lender.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1989 Supp. 74-5071; implementing K.S.A. 1989 Supp. 74-5071, 74-5072, and 74-5073; effective Oct. 8, 1990.)

Kan. Admin. Regs. § 110-40-5 General terms and conditions of financial assistance

(a) Permissible use of financial assistance. Guaranteed loan funds may be used by the exporter to satisfy credit needs with respect to Kansas export transactions. Eligible credit needs include the costs and expenses related to the acquisition or production, financing, and shipment of the goods and services.

(b) Participation. In providing financial assistance, participation from other private and governmental sources, including the United States small business administration, eximbank, the foreign credit insurance association, and private insurers may be sought by the department.

(c) Maximum amount of financial assistance. The department's net exposure for financial assistance to a Kansas export transaction shall not, at any one time, exceed 50 percent of the export loan guarantee fund balance.

(d) Security. Loans may require collateralization of a type, amount, and value which, considered with the other criteria described in K.A.R. 110-40-6, affords reasonable assurance of repayment.

(e) Reporting requirements.

(1) The lender shall report in writing to the director's office as provided in the guarantee agreement and as provided in K.A.R. 110-40-7, loan administration and servicing.

(2) The exporter shall report to the director's office immediately upon making shipment of the goods and shall provide copies of documents evidencing shipment according to the terms of trade. In addition the exporter shall report immediately the receipt of payment of the Kansas export transaction receivable. If requested by the director's office, the exporter shall submit other reports or documentation reasonably related to an assessment of the exporter's compliance with the Kansas export finance act.

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History

History: (Authorized by K.S.A. 74-5071, K.S.A. 74-5072, as amended by 1994 HB 2971; implementing K.S.A 74-5071, 74-5072 and K.S.A. 74-5074; effective Oct. 8, 1990; amended Sept. 19, 1994.)

Kan. Admin. Regs. § 110-40-6 Criteria for approval of financial assistance

(a) Need for financial assistance. A need for financial assistance shall be deemed to exist where credit or loans are otherwise not available for Kansas export transactions. In evaluating the availability of credit or loans the following factors shall be taken into consideration by the department:

(1) Exporter's resources. Consideration shall be given to whether the desired financing appears available, in whole or in part, to the exporter on reasonable terms based upon its own resources, including the exporter's bank credit lines, issuance of new capital, sale of assets at a fair price, and the personal credit or other resources of the owners and principal shareholders of the exporter.

(2) Alternative sources of assistance. Consideration shall also be given to whether the requested financial assistance appears available, in whole or in part, through other governmental sources such as the United States small business administration or eximbank. The exporter may be directed to these sources or to seek coparticipation from these sources, as appropriate, prior to further consideration of the application.

(b) Reasonable risk and likelihood of repayment. Financial assistance shall only be available for loans which represent reasonable risks and which have a sufficient likelihood of repayment. In making these judgements, the following factors shall be considered by the department:

(1) the credit history and financial condition of the exporter;

(2) the collateral and other sources of guarantee or insurance securing the loan or credit;

(3) the terms of the sale and projected earnings from the Kansas export transaction;

(4) the capacity of the exporter to perform commercially, especially in accordance with the commercial terms and conditions of the Kansas export transaction;

(5) the security of the payment terms of the Kansas export transaction, to the extent that the exporter's loan repayment is dependent upon collection of the foreign receivable; and

(6) the lender's ability to evaluate, perform, and service the loan or credit, to make reports as required by these rules, and to collect the loan upon default.

(c) The limits in K.S.A. 1989 Supp. 74-5072(a). The criteria for approval of financial assistance shall include the percentage limitations in K.S.A. 1989 Supp. 74-5072 (a).

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History

History: (Authorized by K.S.A. 1989 Supp. 74-5071; implementing K.S.A. 1989 Supp. 74-5071, 74-5072, 74-5073, and 74-5074; effective Oct. 8, 1990.)

Kan. Admin. Regs. § 110-40-7 Loan administration and servicing

(a) The lender shall perform, administer, and service the loan in accordance with customary and prudent commercial banking practices and in accordance with the terms of all agreements between lender and exporter related to the loan.

(b) The lender shall maintain, and upon request, make available to the department all documents relating to the loan.

(c) The lender shall obtain from exporter the loan security and shall take all necessary action to perfect the security interests.

(d) The lender shall preserve and protect the interest of the lender and the department in the loan and loan security in accordance with customary and prudent commercial banking practices.

(e) The lender shall immediately notify the exporter of any past due payments. If the exporter fails to cure the nonpayment within 30 days, the lender shall notify the director's office and confer regarding action to be taken in servicing and collecting the export loan and pursuing the export loan security.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1989 Supp. 74-5071; implementing K.S.A. 1989 Supp. 74-5071 and 74-5074; effective Oct. 8, 1990.)

Kan. Admin. Regs. § 110-40-8 Guarantee agreement

(a) A guarantee agreement between the department and the lender shall be prepared by the director's office.

(b) The guarantee agreement shall contain two parts consisting of:

(1) a set of general terms and conditions which will be applicable to all Kansas export transactions; and

(2) an attachment to the general terms and conditions designed to identify the specific terms and conditions of each individual transaction.

(c) A guarantee fee as provided in K.S.A. 1989 Supp. 74-5072(c) shall be paid by the lender to the department. The fee shall not be refundable and shall be paid:

(1) not less than five business days from execution of the guarantee agreement by the secretary of commerce; or

(2) not later than the date of the first disbursement under the guaranteed loan, whichever is earlier.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1989 Supp. 74-5071; implementing K.S.A. 1989 Supp. 74-5071, 74- 5072; effective Oct. 8, 1990.)