12-822. Deposits to secure payment of bills; unlawful, when; investment; abandoned deposits, disposition. It shall be unlawful for any public or municipally owned utility doing business in the state of Kansas to receive or collect a deposit from any customer as security for the payment of bills for service rendered, unless such public or municipally owned utility shall keep a separate account of the date on which such deposit is received, the name of the depositor, and the amount thereof, and shall pay to the customer making the deposit interest at the rate determined by the state corporation commission. Such interest shall be credited once a year or credited on January 1 succeeding such deposit and on each January 1 thereafter, to such customer's outstanding account, unless, prior to January 1, such customer shall request the payment of such interest in cash, in which event payment of interest shall be made as requested. Any interest credited shall be subject to call and payment at any time, but shall not draw interest.
The amount of deposit required shall at all times be reasonable, and shall be based upon the value of the maximum service rendered; and such advance deposit, together with the interest due thereon, may be applied to the payment of any accrued bills, or bills due on discontinuance of service. Deposits by customers so held as security for service or for meters at the taking effect of this act shall draw interest from that date and be credited and paid as herein provided. Any municipally owned utility doing business in the state of Kansas may invest money received as customers' deposits as herein provided, in investments authorized by K.S.A. 12-1675, and amendments thereto, in the manner prescribed therein or in bonds of the state of Kansas, or general improvement bonds of cities of the first and second class, or bonds of any county wherein a city of the first or second class is located within the state, or bonds of the boards of education in cities of the first class of this state, or bonds issued or guaranteed by the United States government, or in savings accounts of commercial banks.
Any amount of security deposit, and the accrued interest thereon remaining in the account of any customer of a municipally owned utility who has discontinued service with such utility shall be placed in the operating fund of such utility, upon the following conditions: (a) Such money has remained on deposit with the municipal utility for a period of more than three years from the date service was discontinued;
(b) no demand for such money has been made at any time during the three-year period;
(c) the whereabouts of the person to whose account the money is credited is unknown and a reasonable effort has been made to determine the same; and
(d) following the expiration of the three-year period, the utility has published, once each week for two consecutive weeks in a newspaper of general circulation in the county in which the utility is located, a notice listing any person whose deposit remains on account, and that a demand for such money must be made within 60 days. Any security deposits remaining in the account of any such customer 60 days after the last publication of such notice shall be placed in the operating fund of such utility.
History: L. 1919, ch. 238, § 1; R.S. 1923, § 12-822; L. 1953, ch. 63, § 1; L. 1977, ch. 54, § 4; L. 1978, ch. 59, § 1; L. 1982, ch. 69, § 1; L. 1989, ch. 48, § 65; July 1.
Structure Kansas Statutes
Chapter 12 - Cities And Municipalities
12-801 Gas, water, lights, heat, street-railway, bus or telephone service; election; bonds.
12-803a Street-railway or bus department, when; use of revenues.
12-803b Street-railway or bus system; tax levy, use of proceeds.
12-803c Same; bonds for extension of street-railway or bus system; election.
12-803d Same; ordinances as to operation and charges.
12-803e Same; bond limitations inapplicable.
12-806 Sale of light, heat and power to outlying districts.
12-808 Power of city to sell service generally.
12-808a Electric or gas utility outside city limits; eminent domain; determination of rates.
12-808b Same; filing of rates and location of facilities, when.
12-808c Municipalities; lien for utility services.
12-810 Condemnation by foreign municipality for water plant.
12-812 Same; bonds for enlargement or improvement of waterworks; ordinance; election.
12-817a Application of section and 12-817b.
12-818 Ordinances for control of waterworks.
12-819 Bond limitations not to apply.
12-820 Acquisition of plants outside city.
12-821 Extension of mains or of transmission lines or pipelines.
12-823 Public or municipally owned utilities; penalties.
12-825 Technical service and advice from state commission.
12-825a Petty cash funds, establishment; deposit.
12-825b Same; certification by payees; false pretenses.
12-825c Same; audits; restoration of fund.
12-825d Waterworks, fuel, power and lighting plants; use, disposition and investment of revenues.
12-825e Same; inapplicable to certain cities over 100,000.
12-825f Crediting certain utility revenue to light fund.
12-825g Use of community and utility promotion fund; transfers and expenditures subject to election.
12-825h Foreign-trade zones; establishment and operation; application for federal grant.
12-825i Same; delegation of authority to board of utilities.
12-825k Payment of charges by public utilities at city hall.
12-826 Managing board of commissioners; payment of claims.
12-827 Same; appointment; terms; oath.
12-829 Same; rates; employees; salaries; removal.
12-831 Extension of plants or lines; signed agreements; election required.
12-834 Bonds for gas, water, light, heat, street-railway or telephone service; election.
12-834a Validation of bond election; city of Burns.
12-836 Waterworks bonds; limitation.
12-839 Same; notice; hearing; election in cities of second class.
12-840 Same; bond limitations not to apply.
12-842 Acquisition and operation of city plants; equipment on or across highway.
12-843 Same; bonds; election; limitation; use of surplus revenues.
12-844 Lines and ways of access between city limits and utility plants.
12-847 Same; costs and expenses.
12-848 Control of streets and public grounds.
12-849 Same; ordinance granting use of.
12-850 Same; unlawful use without franchise; penalty.
12-851 Police jurisdiction of cities, second and third classes.
12-852 Flowage rights to waterworks system intake.
12-854 Same; penalty for violating 12-853.
12-855 Same; rights of riparian owners.
12-856 Combined waterworks and sewage disposal system; definitions.
12-859 Same; creation of water and sewage department; operation.
12-860 Same; rates and charges; use of revenue; collection; liens.
12-861 Same; assessment and bonds statutes applicable.
12-862 Same; contracts, revenue bonds; protest petition; election.
12-864 Same; minimum sale price; school fund commission may not purchase.
12-865 Same; revenue bonds; terms; disposition of excess funds.
12-866 Same; revenue bonds; rates, fees and charges; annual audit, filing.
12-868 Same; combined waterworks and sewage system revenue bonds, when; act supplemental.
12-870 Natural gas acquisition systems of cities; definitions.
12-872 Same; sue and be sued; seal; purposes; contracts; limitations.
12-873 Same; compliance with federal law and rules and regulations.
12-874 Same; revenue bonds; refunding bonds.
12-875 Same; investment of funds.
12-876 Same; levy of taxes not authorized.
12-877 Same; deposit of funds with city treasurer.
12-878 Same; signature of officer on instruments.
12-879 Same; employees for system.
12-880 Same; rates and charges for sale of gas.
12-881 Same; trust agreements to secure bonds; contents; expenses.
12-882 Same; moneys received deemed trust funds; trust agreements.
12-883 Same; enforcement of rights and performance of duties.
12-884 Same; annual report and financial statement; filing.
12-887 Resolution providing for creation; protest petition.
12-888 Agreement creating; requirements, procedure.
12-889 Amendment of agreement creating.
12-890 Registered office; change in location.
12-891 Board of directors; membership; terms; vacancies.
12-892 Same; officers; general manager; personnel; resolutions governing business of agency.
12-893 Same; minutes, records, books of account; public inspection.
12-894 Same; compensation, expenses.
12-896 Receipt and expenditures; application of budget and cash-basis laws; auditing procedures.
12-897 Limitations on direct sale of electricity.
12-8,100 Same; investment in bonds issued; deposit for purposes authorized by law.
12-8,101 Same; not subject to general bond law; exempt from taxation; negotiable instruments.
12-8,102 Bond anticipation notes; issuance, renewal, terms, payment, amount.
12-8,103 Revenue bonds and notes; authorized terms of security agreement.
12-8,104 Same; mortgages and deeds of trust of property and franchises.
12-8,106 Purchase and disposition of bonds and notes.
12-8,107 Refunding bonds authorized.
12-8,109 Contracts by member cities with agency for purchase of energy, planning and other services.