74-50,122. Application for benefits; agreement for distributions; terms and conditions; termination upon noncompliance; restrictions on use of benefits. (a) A qualified industrial manufacturer may be eligible for a period of no more than ten calendar years to receive an amount, not to exceed $2,000,000 in the aggregate, from the special qualified industrial manufacturer fund.
(b) A qualified industrial manufacturer may apply to the secretary to enter into an agreement for benefits under this act. The application shall include (1) evidence that the applicant is a qualified industrial manufacturer as defined in K.S.A. 74-50,121, and amendments thereto, and (2) that the qualified industrial manufacturer agrees to make certain improvements to such manufacturer's plant located in Hutchinson, Kansas.
(c) Upon receipt of an application described in subsection (b), if the secretary finds that the application is from a qualified industrial manufacturer, the secretary may enter into an agreement with the qualified industrial manufacturer for benefits under this act. The agreement shall commit the secretary to request that for a period of no longer than ten years, at the discretion of the secretary, from the date of the executed agreement, an amount not to exceed $2,000,000, from the special qualified industrial manufacturer fund created in subsection (d) and shall be transferred by the state treasurer to the qualified industrial manufacturer. The agreement shall set forth the terms and conditions under which the secretary shall direct the state treasurer to transfer revenues in the special qualified industrial manufacturer fund to the qualified industrial manufacturer. In the first three years of the agreement, 90% of the qualified industrial manufacturer's Kansas payroll withholding taxes shall be paid out. In the remaining seven years of the agreement, 40% of the qualified industrial manufacturer's Kansas payroll withholding taxes shall be paid out. In the event the qualified industrial manufacturer fails to comply with the terms and conditions set forth in the agreement, the agreement shall provide that the secretary may terminate the agreement, and the qualified industrial manufacturer shall not be entitled to further distributions from the special qualified industrial manufacturer fund.
(d) The state treasurer shall credit all revenue collected or received from withholding upon Kansas wages paid by a taxpayer which is a qualified industrial manufacturer, as certified by the secretary, to the special qualified industrial manufacturer fund, which fund is hereby created in the custody of the state treasurer, but which fund shall not be a part of the state treasury or the state general fund. Distributions from the fund shall not be subject to appropriation. On or before the 10th day of each month, the director of accounts and reports shall transfer from the state general fund to the special qualified industrial manufacturer fund interest earnings based on: (1) The average daily balance of moneys in the special qualified industrial manufacturer fund for the preceding month; and (2) the net earnings rate of the pooled money investment portfolio for the preceding month. The provisions of this section shall expire when all revenues that, pursuant to the agreement are to be paid to the qualified industrial manufacturer, have been distributed. Moneys credited to the special qualified industrial manufacturer fund in accordance with the foregoing provisions shall be distributed on the order of the secretary. The state treasurer shall make such distributions on such dates as mutually agreed to by the secretary and the state treasurer, serving as paying agent pursuant to the terms of the agreement. The total of all distributions under this section shall not exceed $2,000,000.
(e) A qualified industrial manufacturer shall not be allowed to participate in the IMPACT act or program pursuant to K.S.A. 74-50,102 et seq., and amendments thereto. The secretary may include provisions in the agreement described in subsection (c) to limit or reduce the amount of eligible credits related to the provisions of this act, including, but not limited to, those allowed pursuant to K.S.A. 79-32,160a or 79-32,182b, and amendments thereto. Nothing in this subsection shall be construed to prohibit the qualified industrial manufacturer from receiving credits allowed by law for any investment not related to the provisions of this act.
(f) The agreement between the qualified industrial manufacturer and the secretary shall be entered into before any benefits may be provided under this act, and shall specify that should the qualified industrial manufacturer fail to comply with the terms set forth in the agreement, the secretary may terminate the agreement, and the qualified industrial manufacturer shall not be entitled to further distributions from the special qualified industrial manufacturer fund.
(g) Benefits authorized pursuant to this act shall not be used to provide for or to increase compensation packages, rewards, bonuses, pensions, enhanced retirement, stock options, buyouts or substantial severance pay or other financial benefits to any chief executive officer, chief financial officer or any officers of the company.
History: L. 2007, ch. 27, ยง 3; Mar. 29.
Structure Kansas Statutes
Chapter 74 - State Boards, Commissions And Authorities
Article 50 - Department Of Commerce
74-5001a Purpose of department.
74-5002 Declaration of necessity and public policy.
74-5002c Successors and continuation of department and secretary of economic development.
74-5002d Rules and regulations, orders and directives continued in effect until superseded.
74-5002e Application of documentary references and designations.
74-5002m Rights preserved in legal actions and proceedings.
74-5002o Organization of department; policies governing administration.
74-5002q Rules and regulations to provide objective scoring matrix for awarding housing tax credits.
74-5002r Rules and regulations.
74-5002w Rights preserved in legal actions and proceedings.
74-5002x Transfer of officers and employees; rights and benefits preserved.
74-5002y Authorization to contract for data processing services and training.
74-5005 Powers and duties of department.
74-5007a Purpose and powers of business development division.
74-5009 Division of community development; powers.
74-5011 Same; duties; cooperation by political subdivisions.
74-5012 Same; authorization to enter into certain agreements.
74-5015 Officers and employees, retention of benefits and rights.
74-5016 Property, records and unexpended balances of appropriations transferred.
74-5017 Resolution of conflicts by governor.
74-5018 Rights saved in legal actions and proceedings.
74-5020 Department and office of secretary of economic development abolished.
74-5021 Community resource act; citation.
74-5022 Same; legislative findings and declaration; purpose of act.
74-5025 Same; training and technical assistance; contracts.
74-5026 Same; application for grants; form, manner, time; approval; certified budget.
74-5027 Same; contents of application.
74-5028 Same; grants; amounts; limitations; allocation; reports.
74-5029 Declaration of public policy; development of agricultural products.
74-5033 Contracts for promotional advertising services; bidding exemption.
74-5038 Same; determination of forms to be filed; maintenance of file.
74-5039 "State agency" defined.
74-5048 Division of trade development; powers.
74-5058 Kansas private activity bond allocation act; citation.
74-5062 Same; review of allocation; assistance of advisory committee.
74-5068 Cooperation and assistance required of certain state agencies.
74-5096 Grant administration by department.
74-5098 Authorized uses of grant proceeds; limitations.
74-5099 Cooperative undertakings by city-county economic development organizations.
74-50,100 Authority to award grants terminated.
74-50,101 Evaluation of plans by secretary; report to governor and legislature.
74-50,106 Review and approval of proposed agreements by secretary of commerce; eligibility.
74-50,111 Annual report of IMPACT program activities.
74-50,113 Kansas enterprise zone act.
74-50,115 Same; sales tax exemption; requirements.
74-50,116 Nonmetropolitan regional business program; criteria.
74-50,117 Quarterly list of designated nonmetropolitan regions to revenue.
74-50,118 Nonmetropolitan regions; annual report.
74-50,119 Same; rules and regulations.
74-50,131 Definitions; qualifications; certification of eligibility; rules and regulations.
74-50,132 Tax credits for qualified firms.
74-50,163 Agriculture marketing and promotions advisory board; members; duties.
74-50,181 Title and citation of act.
74-50,183 Athletic commission, established; members, qualifications; terms; compensation.
74-50,184 Same; background investigations.
74-50,185 Inspectors, agents and other personnel; rules and regulations.
74-50,187 Rules and regulations.
74-50,189 Licenses; conditions of issuance.
74-50,190 Sports contests; three judges.
74-50,191 Medical suspensions; medical retirement.
74-50,192 Unlicensed regulated sports; injunctions, restraining or other orders.
74-50,193 Complaints against licensees; suspension, revocation or refusal to issue license, grounds.
74-50,194 Contestants, license required.
74-50,195 Certain sports exempt from regulation under act.
74-50,196 Liability insurance, surety bond or indemnity coverage.
74-50,201 Individual development account program act.
74-50,204 Same; account holder; purposes for withdrawal of moneys.
74-50,205 Same; establishment of account by financial institution; duties; deposits, limitations.
74-50,208 Same; income tax credit for contributions by program contributors.
74-50,209 Qualified older Kansan; access to workforce training; strategic plan required.
74-50,210 Title and intent of act.
74-50,212 Qualified company; eligibility requirements; benefits; retention incentives.
74-50,214 Documentation submitted to department of revenue; rules and regulations.
74-50,215 Annual review of qualified company; books and records; audits.
74-50,220 Recovery zone bonds; allocation; rules and regulations.
74-50,221 Qualified energy conservation bonds; allocation; rules and regulations.
74-50,222 Rural opportunity zones; definitions.
74-50,224 Job creation program fund; expenditures; purposes; annual report.
74-50,225 Economic development incentive programs; application fees; rules and regulations.
74-50,226 Economic development incentive program information database; definitions.
74-50,228 Same; presentations by secretary to legislative committees.