J o u r n a l o f t h e H o u s e FIRST DAY -------- HALL OF THE HOUSE OF REPRESENTATIVES TOPEKA, KAN., Monday, January 13, 1997, 2:00 p.m. This being the day fixed by the Constitution of the State of Kansas for the assembling of the 1997 session of the legislature, the House of Representatives was called to order at 2:00 p.m. by Assistant Secretary of State Janet Chubb. Prayer by the Rev. Cecil T. Washington, Jr., pastor, New Mt. Zion Baptist Church, Topeka: Heavenly Father, Thank You for the convening of this 1997 session. You brought us here, as representatives and servants of all the citizens of this state. The campaign haggling . . . the strategizing and debating for election and reelection is behind us. And according to Your Word in Luke 1:52, it has been by Your Hand, that we have been exalted to these seats. Now, Father, by that same Divine Hand, lead the members of this House. Now that You have brought us together . . . really bring us together. You said in Matthew 12:25, that a house divided against itself cannot stand, so grant us the blessing of unity. Grant us Divine knowledge and wisdom. Grant us Divine influence. And while these servants are here, bless and protect their families . . . their loved ones and their interests at home. To Your glory and honor, and to the good of your people. I come to You in the Name of Christ Jesus. Amen. Assistant Secretary of State Janet Chubb announced the appointment of Janet Jones as temporary Chief Clerk of the House. STATE OF KANSAS OFFICE OF SECRETARY OF STATE I, Ron Thornburgh, Secretary of State, do hereby certify that the following persons were elected members of the House of Representatives of the State of Kansas for a twoyear term beginning on the second Monday of January, A.D. 1997. In Testimony Whereof: I hereto set my hand and cause to be affixed my official seal. Done at the city of Topeka this 27th day of November, A.D. 1996. Ron Thornburgh Secretary of State Janet Chubb Assistant Secretary of State Members of the House of Representatives were then called in blocks of ten, came forward, took and subscribed, or affirmed, to their respective oaths of office, administered to them by Chief Justice Kay McFarland, Kansas Supreme Court, as follows: State of Kansas, County of Shawnee, ss: We, and each of us, do solemnly swear, that we will support the constitution of the United States and the constitution of the State of Kansas, and faithfully discharge the duties of the office of Representative of the State of Kansas, so help us God. District District 1st Tim Shallenburger 52nd Tom Bradley 2nd Robert ``Bob'' Grant 53rd Dixie E. Toelkes 3rd Ed McKechnie 54th Doug Mays 4th Andrew Howell 55th Annie Kuether 5th Bill Feuerborn 56th Nancy Kirk 6th Jene Vickrey 57th Vaughn L. Flora 7th Vernon W. Correll 58th Rocky Nichols 8th Richard R. Reinhardt 59th Joe D. Humerickhouse 9th Stanley E. Dreher, Jr. 60th Lloyd A. Stone 10th Ralph M. Tanner 61st Edward W. Pugh 11th Jim D. Garner 62nd Kent Glasscock 12th Cindy Empson 63rd Bruce F. Larkin 13th Mary Compton 64th Steve Lloyd 14th Kay O'Connor 65th Gerald G. Geringer 15th John M. Toplikar 66th Jeff Peterson 16th Tim Carmody 67th Joe Kejr 17th Lisa L. Benlon 68th Shari Weber 18th Phill Kline 69th Deena L. Horst 19th Phil Kline 70th Don Dahl 20th Gerry Ray 71st Carol Edward Beggs 21st Barbara P. Allen 72nd Garry Boston 22nd Sue Storm 73rd Clark Shultz 23rd Cliff Franklin 74th Ellen B. Samuelson 24th Robert ``Bob'' Tomlinson 75th William G. Mason 25th Al Lane 76th Peggy Long 77th Peggy R. Palmer 26th Larry L. Campbell 78th Judy Showalter 27th Phyllis Gilmore 79th Joe D. Shriver 28th David Adkins 80th Bill McCreary 29th Dennis M. Wilson 81st Ted Powers 30th David Huff 82nd Don Myers 31st Bonnie J. Sharp 83rd JoAnn Pottorff 32nd Herman G. Dillon 84th Jonathan ``Joe'' Wells 33rd Tom Burroughs 85th Tony Powell 34th David Haley 86th Henry M. Helgerson, Jr. 35th Broderick Henderson 87th Mike Farmer 36th Doug Spangler 88th Gwen Welshimer 37th Bill Reardon 89th Ruby Gilbert 38th Jim Long 90th Billie Vining 39th Ray L. Cox 91st Brenda Landwehr 40th L. Candy Ruff 92nd Douglas E. Johnston 41st Marti Crow 93rd Daniel J. Thimesch 42nd Kenny A. Wilk 94th Leslie D. Donovan, Sr. 43rd John Ballou 95th Tom Sawyer 44th Barbara W. Ballard 96th George R. Dean 45th Tom Sloan 97th Dale Swenson 46th Troy Findley 98th Geraldine Flaharty 47th Joann Flower 99th Susan Wagle 48th Jerry Henry 100th Carlos Mayans 49th Galen Weiland 101st Robert E. Krehbiel 50th Becky Hutchins 102nd Janice L. Pauls 51st Greg A. Packer 103rd Thomas M. Klein District District 104th Michael R. ``Mike'' O'Neal 105th Richard Alldritt 106th Sharon Schwartz 107th Joann Freeborn 108th Dennis McKinney 109th Clay Aurand 110th Dan Johnson 111th Eber E. Phelps 112th John Edmonds 113th Jack Wempe 114th Melvin G. Minor 115th Melvin J. Neufeld 116th Ethel M Peterson 117th Robin L. Jennison 118th Gayle L. Mollenkamp 119th Laura McClure 120th John M. Faber 121st Jim Morrison 122nd Gary K. Hayzlett 123rd Terry P. Presta 124th Eugene L. Shore 125th Carl D. Holmes Subscribed and sworn to, or affirmed, before me this 13th day of January, 1997. Kay McFarland Chief Justice of the Supreme Court Nominations being in order for Speaker, Rep. Toplikar nominated Rep. Tim Shallenburger for Speaker of the House. There being no further nominations, Rep. Sawyer moved the nominations be closed, and that the temporary clerk be instructed to cast a unanimous ballot for Rep. Shallenburger as Speaker of the House of Representatives. The motion prevailed. Assistant Secretary of State Janet Chubb requested Rep. Shallenburger to approach the bar for the oath of office. Speaker-elect Shallenburger subscribed to the following oath of office, which was administered by Chief Justice McFarland: State of Kansas, County of Shawnee, ss: I do solemnly swear that I will support the constitution of the United States and the constitution of the State of Kansas, and faithfully discharge the duties of the office of Speaker of the House of Representatives, so help me God. Subscribed and sworn to before me, this 13th day of January, 1997. Kay McFarland Chief Justice of the Supreme Court Speaker Shallenburger addressed the following remarks to the members of the House: In the hustle and bustle of the next 90 days, we might overlook those most important to us, our family. I personally want to express my love and appreciation to my wife Linda and daughter Candice for their sacrifice over the past 10 years. And, on behalf of us all, I think we should pause to recognize our families here with us today who sacrifice for us all as we work for Kansas. I also want to thank each of you for your support and encouragement. Whatever I do and wherever I go, I will never forget the honor you bestow on me today. We do not know if these are the best of times. But we do know that this is our time. The citizens of Kansas selected us to represent them in their House of Representatives. As we make government less intrusive on business, let's not forget the concerns of the working men and women. As we debate concerns of School boards and School teachers, we should remember the schools exist for the school children. As we work for the taxpayer and homeowner, remember we also represent the poor and the homeless. And as we streamline government and reduce regulation on the citizens, remember we are stewards of our state and its natural resources. I pledge to you today to be fair, honest and work hard on your behalf. I understand that the minority is as important as the majority That all ideas, whether I agree with them our not, desire a measure of consideration. And if we all work together, on behalf of all 2 1/2 million Kansans, then when we are finished, some might say, that we made our time the best of times . . . Speaker Shallenburger was presented with the gavel by Assistant Secretary of State Chubb and assumed the chair. Speaker Shallenburger announced the appointment of Janet Jones as Chief Clerk and Ted Fisher as Sergeant-at-Arms of the House of Representatives. Nominations being in order for Speaker pro tem, Rep. Toplikar nominated Rep. Susan Wagle for Speaker pro tem. There being no further nominations, Rep. Reardon moved the nominations be closed and that the Chief Clerk be instructed to cast a unanimous ballot for Rep. Wagle as Speaker pro tem of the House of Representatives. The motion prevailed. Speaker Shallenburger requested Rep. Wagle approach the bar for the oath which was administered by Chief Justice McFarland. State of Kansas, County of Shawnee, ss: I do solemnly swear that I will support the constitution of the United States and the constitution of the State of Kansas, and faithfully discharge the duties of the office of Speaker pro tem of the House of Representatives, so help me God. Subscribed and sworn to before me, this 13th day of January, 1997. Kay McFarland Chief Justice of the Supreme Court Speaker pro tem Wagle addressed the following remarks to the members of the House: Thank you Mr. Speaker Ordinarily someone who has just been elected to the position of Speaker Pro Tem would come to this microphone and tell you that it is an honor to be here. However, for me today, it is instead a humbling experience. Nine months ago I stood at this microphone and told you four different sets of doctors had just finished telling me I was in the final stage of a cancer which had overtaken my body, spread to my bones and progressed to the point that it was considered incurable. What I failed to tell you was the Doctors had also told me that I would not be here today. They told me that I would need aggressive chemotherapy and a bone marrow transplant that would disable me for a couple of years without the promise of a cure. They told me I wouldn't even be capable of giving my children a hug when they returned home from school because the invasion of germs from the outside world would be too great for my weakened person. However, I am fortunate. I have a very strong and loving family. When the doctors left the room, my husband Tom came over and held me in his arms and said, ``Susan, we're in this together. As long as you have cancer, I have cancer.'' And Tom's compassion made me stronger. Over the course of the next few days we told our parents and our children and our extended family. Everyone we told surrounded my family and me with a circle of support and prayers. They met whatever our needs were, and our needs were many. And, my family's compassion in a time when I was weak made me stronger. Then it came time to tell you. And, what started out for me as an exercise in public disclosure became an additional source of healing and support. For I found that my co workers, sitting in this room, who I once looked at through political eyes were looking back at me with eyes full of compassion. You reached out to me. I saw in your faces and I heard in your words your concern. You encouraged me. You prayed for me and you surrounded me with an unexpected circle of support. And, your compassion made me stronger. Today, I stand here officially in remission, without chemotherapy or doctor's medicine of any kind. And, I stand here humbled. I am humbled by a God who holds in his hands all matters of life, who 2000 years ago made the blind to see and the lame to walk, and who today reached out to me, and showed me his compassion. And, I am humbled by my family, who stood by my side and walked with me, and held me up, when the greatest trial of my life was encountered. And, I have been humbled by your actions and by your support. As I stand here today, elected to a leadership position, there is a deep sense within me that I cannot return to you the gifts which you have given me. Your kindness to me has been too great. Your compassion has been overwhelming. Where I once looked at you through legislative eyes, today I see a group of people who really care for others. I see a group of individuals who want for the people of Kansas the same quality of life that you wanted for me. And having been through this experience, I have become more confident than ever in the people who sit in this room. I believe our pooled creativity, our shared ideas, and our negotiations will provide for the people of Kansas the quality of life you have wanted for me. And so it is with great humility that I accept this position. And though I cannot repay you, I want to honor you and thank you at this time for your kindness to me and to the people of this great state of Kansas. Thank you. Speaker Shallenburger asked for announcements from the party caucuses. Rep. Toplikar stated the majority (Republican) party had met and elected the following: (1) Majority Leader, Representative Robin L. Jennison (2) Assistant Majority Leader, Representative Doug Mays (3) Majority Whip, Representative Tony Powell (4) Caucus Chairperson, Representative John M. Toplikar Rep. Jennison addressed the following remarks to the members of the House: Thank you Mr. Speaker. I would first of all like to thank the Republican caucus for the opportunity and the honor to serve as their majority leader. You can not serve in a body such as this without developing a deep respect for the institution and the people that make it up. I count this experience to meet and work with all of you, regardless of party affiliation, as the high point of my life. Legislative institutions are often criticized for partisan bickering and I suppose there are times when we do loose sight of why we are here. But the truth of the matter is we are here to air our differences, we are here to identify problems and debate solutions. We are here to speak for the working men and women of Kansas. We are here to provide the educational opportunity that prepares our children for the future and finally we are here as the caretakers of this great state so our children will indeed have a better future. These are not easy tasks and we will not solve all of these issues by consensus. It is my hope that observers of this process will not mistake genuine philosophical differences as partisan bickering and that we, as a body, do not resort to political gamesmanship as an attempt to find solutions to legitimate problems. There will be times when we draw lines in the sand and maybe for good reason, but we must remember it is not without a price. When both sides draw a line in the sand Kansas does not move forward. There are challenges ahead of us but I think this legislature is up to the task. To Minority Leader Sawyer I would say that we look forward to working with you and your caucus in meeting these challenges. Rep. Ballard stated the minority (Democrat) party had met and elected the following: (1) Minority Leader, Representative Tom Sawyer (2) Assistant Minority Leader, Representative Bill Reardon (3) Minority Whip, Representative Richard Alldritt (4) Caucus Chairperson, Representative Barbara W. Ballard (5) Agenda Chairperson, Representative Bruce F. Larkin (6) Policy Chairperson, Representative Robert E. Krehbiel Rep. Sawyer addressed the following remarks to the members of the House: Speaker Shallenburger, I offer you my congratulations on your re-election as Speaker of the House this afternoon. To my colleagues in the Democratic caucus, I thank you for your support and the sincere honor to once again serve as your leader. I appreciate the confidence you have shown in me and I will do my very best to fulfill your expectations. To all members of the Kansas House, as we convene today, many difficult issues face us, and all Kansas citizens. And this is what we must not forget. That we, as legislators, do not face difficult issues, nor difficult decisions alone. Every Kansan faces them with us. Everything we do affects them. We must never forget why we are here and who we work for. We are here to create opportunities for success for all Kansas citizens. To make policies that create opportunities, not obstacles. Policies that promote fairness, not advantages for one at the expense of another, and that are accountable to the people we represent. This is our responsibility. A responsibility we must accept willingly and never take for granted. So, to our Republican colleagues, the loyal opposition stands ready to work with you, so that we may live up to the trust and faith the people of Kansas have placed in each of us. We are ready to work to find common ground, because it is there, where the interests of Kansans are best served. However, House Democrats will also stand united, as we always have, to hold you accountable when this trust is betrayed and opportunity placed in jeopardy. We are the loyal opposition. This is our job and our duty. However, we are not here to obstruct, but to be constructive. Kansans are looking to us to do what is right, what is just and what is responsible. We must not let them down. So, let us begin our cause today. Working together to create opportunities for every Kansas citizen to succeed today, tomorrow and on into the next century. To treat every Kansan fairly. And, remain accountable--to every citizen, each other and this institution. Thank you. Roll was called with 125 members being present and sworn in for the 1997 session. Speaker Shallenburger announced committee assignments for the 1997-1998 session. STANDING COMMITTEES OF THE HOUSE LEGISLATIVE SESSION, 1997 Agriculture: Flower, Chairperson; Ballou, Vice-chairperson; Compton, Dahl, Faber, Freeborn, Hutchins, Lloyd, P. Long, Schwartz. Weiland, Ranking Minority Member; Correll, Henry, E. Peterson, Phelps, Showalter, Thimesch. Appropriations: Phil Kline, Chairperson; Farmer, Vice-chairperson; Edmonds, Holmes, Kejr, Landwehr, Mollenkamp, Neufeld, O'Connor, Packer, Pottorff, Toplikar, Weber, Wilk. Helgerson, Ranking Minority Member; Ballard, Dean, Feuerborn, McKechnie, Minor, Nichols, Spangler, Reinhardt. Business, Commerce and Labor: Lane, Chairperson; Geringer, Vice-chairperson; Adkins, Beggs, Boston, Gilmore, Mason, McCreary, Swenson, Wilson. Pauls, Ranking Minority Member; Crow, Flaharty, Flora, Grant, Henderson, Storm. Calendar and Printing: Jennison, Chairperson; Shallenburger, Vice-chairperson; Mays, Wagle. Sawyer, Ranking Minority Member; Alldritt, Reardon. Economic Development: Mason, Chairperson; Vickrey, Vice-chairperson; Allen, Beggs, Benlon, Compton, P. Long, McCreary, J. Peterson, Tomlinson. Henderson, Ranking Minority Member; Henry, Kuether, E. Peterson, Sharp, Showalter, Weiland. Education: O'Neal, Chairperson; Shore, Vice-chairperson; Aurand, Ballou, Empson, Faber, Franklin, Horst, Morrison, Powers, Stone, Tanner, Vining. Reardon, Ranking Minority Member; Flaharty, Larkin, Storm, Thimesch, Toelkes, Wells, Wempe. Environment: Lloyd, Chairperson; Freeborn, Vice-chairperson; Glasscock, Huff, Hutchins, Johnson, Myers, Palmer, Schwartz, Sloan. McClure, Ranking Minority Member; Alldritt, Crow, Flora, Johnston, McKinney, Phelps. Federal and State Affairs: Boston, Chairperson; Cox, Vice-chairperson; Ballou, Dahl, Faber, Franklin, Lloyd, P. Long, Mason, Mays, Pugh, Samuelson, Swenson, Vickrey. Gilbert, Ranking Minority Member; Crow, Findley, Grant, Klein, Kuether, Ruff, Sharp, Weiland. Financial Institutions: Donovan, Chairperson; Humerickhouse, Vice-chairperson; Bradley, Campbell, Cox, Dreher, Geringer, Ray, Samuelson, Wilson. Correll, Ranking Minority Member; Burroughs, Dillon, Findley, Gilbert, Grant, Welshimer. Fiscal Oversight: Holmes, Chairperson; Edmonds, Vice-Chairperson; Allen, Bradley, Carmody, Hayzlett, Morrison, O'Neal. Shriver, Ranking Minority Member; Burroughs, Grant, McKinney, Phelps, Reinhardt. Governmental Organization and Elections: Glasscock, Chairperson; Tanner, Vicechairperson; Benlon, Campbell, Cox, Horst, Huff, Powers, Ray, Tomlinson. Welshimer, Ranking Minority Member; Dillon, Gilbert, Haley, J. Long, Sharp, Wells. Health and Human Services: Mayans, Chairperson; Morrison, Vice-chairperson; Freeborn, Geringer, Gilmore, Horst, Hutchins, Powell, Shultz, Vining. Henry, Ranking Minority Member; Flaharty, Haley, Showalter, Storm, Wells, Welshimer. Insurance: Bradley, Chairperson; Wilson, Vice-chairperson; Campbell, Compton, Empson, Johnson, McCreary, Stone, Tanner, Tomlinson. Kirk, Ranking Minority Member; Burroughs, Flora, Garner, Henderson, Johnston, Krehbiel. Interstate Cooperation: Wagle, Chairperson; Jennison, Vice-chairperson; Mays, Shallenburger. Larkin, Ranking Minority Member; Ballard, Sawyer. Judiciary: Carmody, Chairperson; Pugh, Vice-chairperson; Adkins, Dahl, Gilmore, Howell, Phill Kline, Mayans, Mays, Powell, Presta, Shultz, Swenson. Garner, Ranking Minority Member; Haley, Kirk, Klein, Krehbiel, Pauls, Ruff, Shriver. Rules and Journal: Tanner, Chairperson; O'Neal, Powell. Alldritt, Vice-chairperson; Garner. Taxation: Phill Kline, Chairperson; Powell, Vice-chairperson; Donovan, Empson, Franklin, Howell, Mays, Palmer, J. Peterson, Presta, Pugh, Shore, Shultz, Vickrey. Larkin, Ranking Minority Member; Findley, Garner, Johnston, Kirk, Krehbiel, Ruff, Shriver, Wempe. Tourism: Allen, Chairperson; Presta, Vice-chairperson; Adkins, Beggs, Benlon, Donovan, Huff, O'Neal, Palmer, J. Peterson. Toelkes, Ranking Minority Member; Alldritt, Larkin, E. Peterson, Phelps, Shriver, Wempe. Transportation: Hayzlett, Chairperson; Howell, Vice-chairperson; Aurand, Dreher, Flower, Humerickhouse, Powers, Ray, Schwartz, Shore. Dillon, Ranking Minority Member; Correll, Long, McClure, McKinney, Pauls, Thimesch.. Utilities: Myers, Chairperson; Aurand, Vice-chairperson; Dreher, Humerickhouse, Johnson, Mayans, Samuelson, Sloan, Stone, Vining. McKinney, Ranking Minority Member; Alldritt, Burroughs, Klein, Kuether, McClure, Toelkes. JOINT COMMITTEES OF HOUSE AND SENATE Administrative Rules and Regulations: Neufeld, Chairperson; Aurand, Ballou, Holmes. Pauls, Ranking Minority Member; Shriver, Welshimer. Arts and Cultural Resources: Pottorff, Chairperson; P. Long, Tanner. Ruff, Ranking Minority Member; Sharp. Children and Families: Gilmore, Chairperson; Freeborn, Landwehr, Lloyd, Powers. Henry, Ranking Minority Member; Findley, Toelkes. Computers and Telecommunications: Morrison, Vice-chairperson; Dean, Hayzlett. Economic Development: Mason, Vice-chairperson; Mollenkamp, Presta, Toplikar, Vickrey. Ranking Minority Member, Henderson; Kuether, E. Peterson. Health Care Reform Legislative Oversight Committee: Bradley, Vice-chairperson; Hutchins, Mayans. Helgerson, Ranking Minority Member; Ballard, Showalter. Legislative Educational Planning: Empson, Vice-chairperson; Horst, O'Connor. Reinhardt, Ranking Minority Member; Ballard, Wells. Legislative Post Audit: Wilson, Chairperson; Mays, Shore; Alldritt, McKechnie. Pensions, Investments and Benefits: Edmonds, Vice-chairperson; Cox, Donovan, Lane, Weber. J. Long, Ranking Minority Member; Flaharty, Flora. Special Claims Against the State: Kejr, Vice-chairperson; Carmody, Compton, Farmer, Pugh. Dillon, Ranking Minority Member; Correll, Minor. State Building Construction: Phil Kline, Vice-chairperson; Howell; Reinhardt. State Gaming Compacts: Franklin, Chairperson; O'Neal; Weiland. INTRODUCTION OF ORIGINAL MOTIONS AND HOUSE RESOLUTIONS On emergency motion of Rep. Jennison, HR 6001, by Reps. Shallenburger and Sawyer, as follows, was introduced and adopted: HOUSE RESOLUTION No. 6001-- A RESOLUTION relating to the organization of the House of Representatives. Be it resolved by the House of Representatives of the State of Kansas: That the Chief Clerk of the House of Representatives notify the Senate that the House is organized with the following officers: Tim Shallenburger, speaker, Susan Wagle, speaker pro tem, Robin L. Jennison, majority leader, Michael T. (Tom) Sawyer, minority leader, Janet Jones, chief clerk, Ted Fischer, sergeant at arms, and awaits the pleasure of the Senate. INTRODUCTION OF ORIGINAL MOTIONS AND HOUSE RESOLUTIONS On emerge ncy motion of Rep. Jennison, HR 6002, by Reps. Shallenburger and Sawyer, as follows, was introduced and adopted: HOUSE RESOLUTION No. 6002-- A RESOLUTION relating to assignment of seats of the House of Representatives. Be it resolved by the House of Representatives of the State of Kansas: That the speaker be assigned seat No. 3; the speaker pro tem be assigned seat No. 2; the majority leader be assigned seat No. 4; the minority leader be assigned seat No. 5; and the remaining members of the house be assigned the following seats: Adkins, seat No. 123; Alldritt, seat No. 36; Allen, seat No. 46; Aurand, seat No. 42; Ballard, seat No. 74; Ballou, seat No. 89; Beggs, seat No. 106; Benlon, seat No. 122; Boston, seat No. 26; Bradley, seat No. 25; Burroughs, seat No. 92; Campbell, seat No. 90; Carmody, seat No. 100; Compton, seat No. 62; Correll, seat No. 78; Cox, seat No. 116; Crow, seat No. 17; Dahl, seat No. 65; Dean, seat No. 32; Dillon, seat No. 125; Donovan, seat No. 84; Dreher, seat No. 108; Edmonds, seat No. 50; Empson, seat No. 14; Faber, seat No. 98; Farmer, seat No. 11; Feuerborn, seat No. 77; Findley, seat No. 37; Flaharty, seat No. 95; Flora, seat No. 53; Flower, seat No. 23; Franklin, seat No. 103; Freeborn, seat No. 47; Garner, seat No. 56; Geringer, seat No. 88; Gilbert, seat No. 18; Gilmore, seat No. 97; Glasscock, seat No. 117; Grant, seat No. 124; Haley, seat No. 113; Hayzlett, seat No. 27; Helgerson, seat No. 19; Henderson, seat No. 75; Henry, seat No. 22; Holmes, seat No. 45; Horst, seat No. 64; Howell, seat No. 109; Huff, seat No. 86; Humerickhouse, seat No. 49; Hutchins, seat No. 24; Johnson, seat No. 111; Johnston, seat No. 16; Kejr, seat No. 112; Kirk, seat No. 96; Klein, seat No. 72; Kline, Phil, seat No. 1; Kline, Phill, seat No. 87; Krehbiel, seat No. 8; Kuether, seat No. 34; Landwehr, seat No. 63; Lane, seat No. 115; Larkin, seat No. 7; Lloyd, seat No. 43; Long, J., seat No. 114; Long, P., seat No. 61; Mason, seat No. 69; Mayans, seat No. 67; Mays, seat No. 82; McClure, seat No. 93; McCreary, seat No. 66; McKechnie, seat No. 71; McKinney, seat No. 38; Minor, seat No. 21; Mollenkamp, seat No. 81; Morrison, seat No. 99; Myers, seat No. 48; Neufeld, seat No. 107; Nichols, seat No. 60; O'Connor, seat No. 119; O'Neal, seat No. 28; Packer, seat No. 79; Palmer, seat No. 68; Pauls, seat No. 94; Peterson, E., seat No. 70; Peterson, J., seat No. 9; Phelps, seat No. 52; Pottorff, seat No. 13; Powell, seat No. 105; Powers, seat No. 30; Presta, seat No. 80; Pugh, seat No. 41; Ray, seat No. 29; Reardon, seat No. 6; Reinhardt, seat No. 55; Ruff, seat No. 33; Samuelson, seat No. 15; Schwartz, seat No. 44; Sharp, seat No. 57; Shore, seat No. 12; Showalter, seat No. 58; Shriver, seat No. 73; Shultz, seat No. 104; Sloan, seat No. 121; Spangler, seat No. 59; Stone, seat No. 102; Storm, seat No. 54; Swenson, seat No. 120; Tanner, seat No. 101; Thimesch, seat No. 39; Toelkes, seat No. 35; Tomlinson, seat No. 31; Toplikar, seat No. 91; Vickrey, seat No. 110; Vining, seat No. 83; Weber, seat No. 10; Weiland, seat No. 20; Wells, seat No. 76; Welshimer, seat No. 51; Wempe, seat No. 40; Wilk, seat No. 118; Wilson, seat No. 85. The first three seats south of the center aisle in the last row are reserved for the sergeant at arms. INTRODUCTION OF ORIGINAL MOTIONS AND HOUSE RESOLUTIONS On emergency motion of Rep. Jennison, HR 6003, by Reps. Shallenburger and Sawyer, as follows, was introduced and adopted: HOUSE RESOLUTION NO. 6003-- A RESOLUTION relating to the rules of the House of Representatives for the 1997-1998 biennium. Be it resolved by the House of Representatives of the State of Kansas: That except as otherwise hereinafter provided, the rules of the House of Representatives for the 19951996 biennium in effect at the time of adjournment sine die of the 1996 regular session of the legislature shall constitute the temporary rules of the House of Representatives for the 1997 regular session until permanent rules are adopted; and Be it further resolved: That Rule 1101 of the 1995-1996 biennium shall be amended to read as follows and shall constitute a temporary rule of the House until a permanent rule is adopted: Rule 1101. Standing Committees; Names and Members. The standing committees of the House shall be the following and have the number of members indicated for each: 1. Agriculture................................................... 17 2. Appropriations................................................ 23 3. Business, Commerce and Labor.................................. 17 4. Calendar and Printing......................................... 7 5. Economic Development.......................................... 17 6. Education..................................................... 21 7. ~~Energy and Natural Resources~~ Environment...................... 17 8. Federal and State Affairs..................................... 23 9. Financial Institutions ~~and Insurance~~.......................... 17 10. Fiscal Oversight.............................................. 14 10 11. Governmental Organization and Elections.................... 17 11 12. Health and Human Services.................................. 17 13. Insurance..................................................... 17 12 14. Interstate Cooperation..................................... 7 13 15. Judiciary.................................................. 21 ~~14. Local Government~~.............................................. 17 15 16. Rules and Journal.......................................... 5 16 17. Taxation................................................... 23 18. Tourism....................................................... 17 17 19. Transportation............................................. 17 20. Utilities..................................................... 17 INTRODUCTION OF BILLS AND CONCURRENT RESOLUTIONS The following bills and concurrent resolutions were introduced and read by title: HB 2001, An act concerning crimes and punishment; relating to criminal use of weapons; amending K.S.A. 1996 Supp. 21-4201 and repealing the existing section, by Representative Edmonds. HB 2002, An act concerning special education services for uniquely different exceptional children; relating to determination of grants of state moneys for provision by school districts; amending K.S.A. 1996 Supp. 72-983 and repealing the existing section, by Special Committee on School Finance. HB 2003, An act concerning school districts; authorizing the collection of fees for transportation of pupils; prescribing limitations; amending K.S.A. 1996 Supp. 72-8302 and repealing the existing section, by Special Committee on School Finance. HB 2004, An act amending the Kansas proprietary school act; affecting definitions; increasing fees for certificates of approval and registration of representatives of schools; establishing the proprietary school tuition protection fund and prescribing revenue sources; providing for the assistance of students upon school closures; amending K.S.A. 72-4919, 724920, 72-4921, 72-4922, 72-4924, 72-4925, 72-4926, 72-4927, 72-4928, 72-4929, 72-4931, 72-4933, 72-4934, 72-4935, 72-4936, 72-4937, 72-4938, 72-4939 and 72-4940 and K.S.A. 1996 Supp. 72-4932 and repealing the existing sections; also repealing K.S.A. 72-4917, 724918 and 72-4923, by Legislative Educational Planning Committee. HB 2005, An act relating to property taxation; increasing refund amounts allowable pursuant to the homestead property tax refund act; amending K.S.A. 1996 Supp. 79-4509 and repealing the existing section, by Special Committee on Property Taxation. HB 2006, An act relating to property taxation; relating to the treatment of certain communication towers and real property associated therewith for such purposes, by Special Committee on Property Taxation. HB 2007, An act concerning civil procedure; amending K.S.A. 60-102, 60-205, 60-206, 60-209, 60-211, 60-214, 60-215, 60-216, 60-223, 60-226, 60-228, 60-230, 60-231, 60-232, 60-233, 60-234, 60-235, 60-236, 60-237, 60-238, 60-241, 60-243, 60-245, 60-245a, 60-250, 60-252, 60-256, 60-262, 60-456, 60-2103, 60-3703, 61-1710, 61-1725 and 75-3079 and K.S.A. 1996 Supp. 60-1608 and repealing the existing sections; also repealing K.S.A. 602007, by Special Committee on Judiciary. HB 2008, An act concerning crimes, punishment and criminal procedure; relating to authorized dispositions; probation, jail term; presentence investigation report; amending K.S.A. 1996 Supp. 21-4603d and 21-4714 and repealing the existing sections, by Special Committee on Judiciary. HB 2009, An act concerning insurance; relating to the taxation of annuities; amending K.S.A. 40-252 and repealing the existing section, by Special Committee on Insurance. HB 2010, An act relating to the records of the division of vehicles; amending K.S.A. 1996 Supp. 74-2012 and repealing the existing section, by Special Committee on Transportation. HB 2011, An act relating to workers compensation pools; concerning rating organizations; amending K.S.A. 1996 Supp. 12-2621 and 44-585 and repealing the existing sections, by Special Committee on Insurance. HB 2012, An act concerning state finances; relating to the ending balance in the state general fund; providing for temporary cash flow certificates; establishing the property tax reduction fund; amending K.S.A. 75-4001 and K.S.A. 1996 Supp. 75-3725a and 75-6702 and repealing the existing sections, by Legislative Budget Committee. HB 2013, An act concerning extradition; relating to the release of certain prisoners; amending K.S.A. 22-2713 and repealing the existing section, by Representative Wilk. HB 2014, An act relating to certain communications by employees of state agencies, local governments and certain public contractors; prohibiting certain acts by supervisors and appointing authorities; providing remedies for violations; amending K.S.A. 1996 Supp. 752973 and repealing the existing section, by Legislative Post Audit Committee. HOUSE CONCURRENT RESOLUTION No. 5001-- By Representative McKechnie A PROPOSITION to amend article 14 of the Constitution of the state of Kansas by adding a new section thereto, providing for a constitutional convention to consider the revision or amendment of the constitution relating to the structure and finance of taxing subdivisions of the state. WHEREAS, The Constitution of the state of Kansas was adopted by convention on July 29, 1859, and ratified by voters at election on October 4, 1859, in Wyandotte, Kansas; and WHEREAS, Kansas entered the Union, becoming a state of the United States of America on January 29, 1861; and WHEREAS, In 1859 the Constitution adopted in convention at Wyandotte established the basic structure of both the state government and all of its taxing subdivisions and taxation for the supporting thereof; and WHEREAS, From the time of its adoption, until amended in 1928 authorizing motor vehicle and motor fuel taxes and in 1931 to provide for the authorization of the state income tax, Article 11 of the Constitution relating to the finance and taxation, did and continues to apply primarily to the taxation of property; and WHEREAS, Funding for the support of all of the taxing subdivisions of the state government continues to rely primarily on the property tax as its primary source of revenue as it has since 1859; and WHEREAS, The taxation of property to provide for needed government services is no longer a valid or accurate reflection of a fair or equitable tax; and WHEREAS, From the time of the Wyandotte convention to the present, there have been studies conducted and revisions made in the Constitution relating to property taxes, powers and authorities of cities and counties and the structure of education. Studies conducted and action taken applied primarily to each single subject area individually, but not in any way inclusive or comprehensive; and WHEREAS, The seventy-seventh Legislature of the state of Kansas here assembled finds that: (a) Property taxes are a regressive and unfair form of taxation forcing an undue burden upon the citizens of this state; and (b) since Kansas' entry into the Union on January 29, 1861, the economies of the state and of the United States have changed dramatically; and (c) comprehensive review of the structure of the form of taxation and of local taxing subdivisions has never been performed with the intention of proposing revisions to the Constitution; and (d) property taxes as a form of taxation should be forever abolished: Now, therefore, Be it resolved by the Legislature of the State of Kansas, two-thirds of the members elected (or appointed) and qualified to the House of Representatives and two-thirds of the members elected (or appointed) and qualified to the Senate concurring therein: Section 1. The following proposition to amend the constitution of the state of Kansas shall be submitted to the qualified electors of the state for their approval or rejection: Article 14 of the constitution of the state of Kansas is hereby amended by adding a new section thereto to read as follows: ``(section) 3. Constitutional convention to consider structure and finance of taxing subdivisions of the state. A constitutional convention to consider a comprehensive revision or amendment of the constitution of the state of Kansas relating to the structure and finance of taxing subdivisions of the state shall be convened in the city of Hutchinson, Kansas, on July 5, 1999, as hereinafter provided. Three delegates shall be elected from each state senatorial district. Such delegates shall have the same qualifications as provided by the constitution for members of the legislature. Members of the legislature and candidates for membership therein shall be eligible for election as delegates to the convention. Delegates shall be elected in the manner prescribed by law for the election of members of the legislature, at an election to be called and held at the time of holding general elections in school districts in April, 1999, except that the fee for the declaration of candidacy shall be $50. Each delegate shall receive compensation and allowances as are prescribed by law for members of the legislature. The convention shall have power to choose its own officers, appoint and remove its employees and fix their compensation, determine its rules, judge the qualifications of its members, and carry on the business of the convention in an orderly manner. A vacancy in the office of any delegate shall be filled as provided by law. The convention shall have power to propose comprehensive amendments or revisions in all parts of the constitution relating to the structure and finance of taxing subdivisions of the state, subject to ratification by the electors. No proposed constitution, or amendment or revision of an existing constitution, shall be submitted by the convention to the electors unless it has been available to the delegates in final form at least three days on which the convention is in session, prior to final passage, and receives the assent of a majority of all the delegates. The yeas and nays upon final passage of any proposal, and upon any question upon request of one-tenth of the delegates present, shall be entered in the journal of the convention. The convention shall expire on December 31, 1999. Proposals of the convention shall be submitted to the electors at the general election held in November, 2000, and shall take effect in accordance with the provisions thereof in such form and with such notice as is directed by the convention upon receiving the approval of a majority of the qualified electors voting thereon.'' Sec. 2. The following statement shall be printed on the ballot with the amendment as a whole: ``Explanatory statement. This amendment would authorize the convening of a constitutional convention in the year 1999, to consider a comprehensive revision or amendment of the provisions of the state constitution relating to the structure and financing of taxing subdivisions of the state. ``A vote for this proposition would favor authorizing the establishment and convening of a constitutional convention to consider revision or amendment of the constitution relating to the structure and financing of taxing subdivisions of the state. ``A vote against this proposition would favor granting no authority for the convening of a constitutional convention for this specific purpose.'' Sec. 3. This resolution, if approved by two-thirds of the members elected (or appointed) and qualified to the House of Representatives and two-thirds of the members elected (or appointed) and qualified to the Senate, shall be entered on the journals, together with the yeas and nays. The secretary of state shall cause this resolution to be published as provided by law and shall cause the proposed amendment to be submitted to the electors of the state at the general election in the year 1998 unless a special election is called at a sooner date by concurrent resolution of the legislature, in which case it shall be submitted to the electors of the state at the special election. On motion of Rep. Jennison, HCR 5002, by Reps. Shallenburger and Sawyer, as follows, was adopted: HOUSE CONCURRENT RESOLUTION No. 5002-- A CONCURRENT RESOLTUION providing for a joint session of the Senate and House of Representatives for the purpose of hearing a message from the Governor. Be it resolved by the House of Representatives of the State of Kansas, the Senate concurring therein: That the Senate and the House of Representatives meet in joint session in Representative Hall at 6 p.m. on January 13, 1997, for the purpose of hearing the message of the Governor. Be it further resolved: That a committee of two members from the Senate and three members from the House of Representatives be appointed to wait upon the Governor. Be it futher resolved: That a committee of two member from the Senate and three members from the House of Representatives be appointed to wait upon the Lieutenant Governor. In accordance with HCR 5002, Speaker Shallenburger appointed Reps. Beggs, Franklin and Reinhardt to escort the Governor; Reps. Donovan, Allen and Welshimer to escort the Lieutenant Governor; and Reps. Mollenkamp, Packer and Weiland to escort the Senate. REFERENCE OF BILLS AND CONCURRENT RESOLUTIONS The following prefiled bills and resolutions were referred to Committees as indicated: Appropriations: HB 2002, 2012. Education: HB 2003, 2004. Federal and State Affairs: HCR 5001. Governmental Organization and Elections: HB 2014. Insurance: HB 2009, 2011. Judiciary: HB 2001, 2007, 2008, 2013. Taxation: HB 2005, 2006. Transportation: HB 2010. MESSAGES FROM THE SENATE Announcing adoption of SR 1801, a resolution relating to the organization of the 1997 Senate and selection of the following officers: Dick Bond, President, Alicia Salisbury, Vice President, Tim Emert, Majority Leader, Anthony Hensley, Minority Leader, Pat Saville, Secretary, Jim Woods, Sergeant at Arms, and awaits the pleasure of the House of Representatives. Also, announcing adoption of SCR 1602, a concurrent resolution relating to a committee to wait upon the Governor and advise him the 1997 session of the Legislature is duly organized and ready to receive communication. Also, announcing the appointment of Senators Vidricksen and Goodwin as Senate members of the committee to wait upon the Governor. INTRODUCTION OF SENATE BILLS AND CONCURRENT RESOLUTIONS On motion of Rep. Jennison, SCR 1602, as follows, was introduced and adopted: A concurrent resolution relating to a committee to wait upon the Governor and advise him the 1997 session of the Legislature is duly organized and ready to receive communication. In accordance with SCR 1602, Speaker Shallenburger appointed Reps. Phil Kline, P. Long and Garner to wait upon the Governor. INTRODUCTION OF GUESTS Speaker Shallenburger introduced Dr. Diane Klingman, president of the Kansas Academy of Family Physicians, the organization that sponsors the Doctor of the Day Program. Dr. Klingman, originally from Independence and a graduate of the Kansas University School of Medicine, practices in Wichita. On motion of Rep. Jennison, the House recessed until 6:00 p.m. _________ Evening Session The House met pursuant to recess with Speaker Shallenburger in the chair. MESSAGE FROM THE SENATE Announcing adoption of HCR 5002, a concurrent resolution providing for a joint session of the Senate and House of Representatives for the purpose of hearing a message from the Governor. The Senate announces the appointment of Senators Morris and Karr to escort the Governor. Also, Senators Salisbury and Gooch to escort the Lt. Governor. It being the hour in accordance with HCR 5002 to meet in joint session with the Senate to hear the message of the Governor, Reps. Mollenkamp, Packer and Weiland escorted members of the Senate to seats in the House. Reps. Donovan, Allen and Welshimer and Senators Salisbury and Gooch escorted the Lieutenant Governor a seat in the House. Reps. Beggs, Franklin and Reinhardt and Senators Morris and Karr escorted the Governor to the rostrum. Mr. Speaker, Mr. President, Madam Chief Justice, Members of the Legislature and Fellow Kansans: For the third time, it is my honor to appear before you as Governor. I particularly want to bring special greetings to the new members of the legislature and their families. It is my pleasure to report to you that the state of our state is sound, and our economy is robust. Our average unemployment rate for the past year is the lowest in nearly two decades. New job creation occurred in every region of the state, totaling more than 30,000 jobs last fiscal year, and one out of five of those new jobs resulted, in part, from our aggressive state economic development programs and initiatives. Personal income for 1996 is anticipated to have increased 6.2 percent. Our state's rural areas continue to rebound in population. Fifty-five of the state's 96 non-metropolitan counties increased population in 1995 over 1994. The total net increase may be small, but nevertheless reverses a decadeslong trend of population loss from rural areas. Our eight-year, $3.2 billion highway program is entering its final year, on-schedule and on-budget. A quality highway infrastructure is vital to this state's economy and to our Kansas communities. As this program comes to an end, I look forward to a constructive dialogue that assesses our future needs and plans to ensure those needs are met. Thoughtful public policy and a partnership between the legislature and my Administration have contributed to this vitality by controlling spending and providing significant tax relief. However, most of thecredit must go to the businesses of the state, both large and small, and to the women and men of Kansas whose skills and talents make the Kansas work force second to none. One of Kansas' most famous sons, playwright and author William Inge, when writing of the state and its people used the term ``level.'' He noted that while most Kansans were conservative, few were extreme. We are not a people who hold on to the past, nor do we wildly speculate on the future. Inge suggests we are a level-headed people with balance in our lives. That heritage is to be found everywhere in our state today as Kansans continue to balance their careers, their families and their sense of community. Those of us in public service have a responsibility to bring that balance to what we do. Within that framework, we must find ways to cut taxes, returning dollars to the people of this state who need it more than government does. We must provide budgets that are fiscally responsible, yet are responsive to the needs of the 2.5 million Kansans we serve. Let me repeat the message delivered to my senior management in this chamber one month ago. The people we must serve are not just those who are the loudest, or those who are the most organized, or those who can afford to hire voices. They are also the working women and men who are busy balancing their lives between job, family and community. They don't have time to write or come to Topeka to speak before a committee. They often don't know where to write or how to find a voice in government. These Kansans must also be heard. This message presents to Kansas and this legislature proposals that I believe capture the Kansas sense of balance and fairness. This message presents a responsible budget, responsive initiatives and a reduction of tax dollars collected from our citizens. Responsible Budget My budget recommendations offer a responsible but limited growth of 2.4 percent in general fund spending--less than the current rate of inflation. For fiscal year 1998, the total general fund budget I recommend is $3.75 billion, compared to the fiscal year 1997 recommended budget of $3.58 billion. The total budget I recommend from all sources for fiscal year 1998 is $7.89 billion, a reduction of $17.4 million compared to the previous year. It's not a standstill budget, for we do not live in a standstill world. We cannot ask our schools to do a better job with children that society--not schools--has placed at-risk, and then refuse to enhance at-risk programs. We cannot live in a technological world and deny our post-secondary students access to technology. We cannot create a new justice system for juveniles without adequate funding, nor demand longer sentences for adult criminals and fail to provide adequate prison space. We cannot ask a reduced state workforce to do more without fair compensation. We cannot ignore the reality of inflation. This budget speaks for itself. Every item, every line was reviewed. Successful programs were enhanced and marginal programs were reduced or eliminated. While Kansans want conservative fiscal management, they also deserve quality government services that meet the changing needs of our state. They do not believe in diminishing the future by slashing budgets today. Responsive Initiatives I am pleased to tell you that within this thoughtful budget are dozens of program enhancements and new initiatives. I am a believer in education, and I am a supporter of all levels of education in this state. Included in my education initiatives are the following that will: · add $4.0 million--an increase of 20 percent--to at-risk dollars so our schools can invest today in children who face the greatest challenges, rather than pay higher costs tomorrow; · provide new funding of $10 million for special education; · provide nearly $20 million--not only to fund the third year of high correlation weighting, but to accelerate the fourth year into 1998--to more quickly address the inequity in the school finance formula identified by the 1995 legislature; · provide $12 million, increasing the base budget per pupil for education by $22 to $3,670; and, · provide $7.5 million to the Regents institutions for investment in technology to ensure Kansas students learn in an environment that adequately prepares them for a technological world. Not long ago, I reminded the senior management of my Administration we must provide higher quality service to our customers, the people of Kansas. During the past two years, we reduced the number of state employees at a rate of nearly 100 each month. However, we have continually asked state employees to do more. It is imperative we fairly compensate these employees. I am proposing step movement, a 1 percent base salary adjustment and full funding of longevity for classified employees, and a 3.5 percent unclassified merit pool. Being tough on crime carries a responsibility for providing adequate space to house criminals. We have immediate needs that will be best met by expanding existing prison capacity by 550 beds at Norton, Hutchinson and El Dorado. This is in addition to current expansion of 251 beds at Lansing, Winfield and Larned. Long-term needs still must be addressed, and I look forward to productive discussions this session. We will not make Kansas safe by putting violent criminals on our streets rather than in prison. Being responsible also means meeting our obligations. Since 1978, the debt owed on El Dorado State Lake has gone unpaid. Under my direction, we have negotiated a final settlement with the Corps of Engineers, and my budget will pay this debt in full. Not to do so could incur costly litigation and jeopardize future federal money. One of the most significant reforms of our time--the remaking of welfare across America--is being aggressively implemented by this Administration. As we seek our goal of returning welfare recipients to the work force, we must address the needs of those who will be affected by this transition. My budget includes money for additional child care and employment services for welfare recipients, and assistance for legal immigrants--most of whom are elderly. Also, we will continue to see that seniors receive appropriate at-home services or placement in long-term care. While we have reduced employees in most of the agencies reporting to my office, there are some staffing needs that must be met. One example is the addition of nine positions for the Kansas Department of Health and Environment for its Confined Feeding Lot Operations in southwest Kansas to ensure adequate monitoring of ground water quality and to establish an additional district office. Besides continuing the steady progress made by my Water Quality Initiative, other environmental efforts include funding for a salt contamination study of the Ogallala Aquifer; funding for lead removal in the Cherokee County superfund site; funding for abandoned water, oil and gas well plugging; and funding the administrative costs of a program that will access $12 million in loans for local communities to improve their water systems. All these initiatives are important to maintaining the healthy environment Kansans deserve. While reducing the tax burden of Kansans was achieved during the last two sessions, it is not enough to simply cut taxes. We must maintain a tax system that is fair, user-friendly and equitable. My proposal for a Taxpayer Fairness Plan, which includes a more taxpayerfriendly appeal and hearing officer process and support for the county appraisal process, will enhance customer service. This plan is a priority of my Administration. For the third year I ask you to strengthen the ethics laws of this state. My ethics proposal will prohibit political action committee, corporate and union contributions while the legislature is in session; eliminate giftsand hospitality for virtually all executive branch employees under my jurisdiction; and ensure that special interest groups--in-state and outof-state--who financially participate in Kansas elections have an obligation to tellKansans who they are, what they spent and where they got their money. To restore Kansans' faith in government, we must address the issues of ethics and campaign reform. The initiatives I have just reviewed are but a few of the responsive measures found throughout the budget and in the legislative proposals of my Cabinet. I particularly want to express appreciation to my Cabinet who have given two years of outstanding service to this state and who continue to aggressively pursue new ways to better serve our customers--the people of Kansas. Reduce the Tax Burden on the People and Businesses of Kansas For the third year in a row, I recommend responsible tax cuts and a plan to reduce the tax burden on the people and businesses of this state. I am proposing a fair and balanced package which does not favor one tax over another, but seeks to bring greater equity to a wide range of taxes. In fiscal year 1998, more than $112 million in new tax relief will be provided by the package of new tax cuts I present: Elimination of Premiums Tax on Annuities: This tax has restricted Kansas insurance companies in their efforts to do business nationwide. I join with the Insurance Commissioner and the Interim Legislative Committee in asking you to allow Kansas companies to be more successful by eliminating this non-competitive tax. Income Tax Credit for Commercial and Industrial Property Taxes on Machinery and Equipment: To be competitive, our Kansas businesses must continually invest in machinery and equipment on which the state imposes a property tax. To begin to relieve that burden, I am proposing a 10 percent income tax credit for property taxes paid on commercial and industrial machinery and equipment. This will be significant, especially to small business owners who are vital to continuing our healthy Kansas economy. Income Tax Credit for Adoptions: We need to reduce the financial burden of our young families, our limited income families, and all families who wish to adopt children. While the state is committed to moving children from foster care into permanent homes, we also must be committed to encouraging families to adopt all children in need of a family. I know from personal experience there are significant costs involved. Therefore, I propose a $2,500 tax credit for those who adopt, and I encourage Kansans to open their hearts and their homes to these children. Expansion of Homestead Property Tax Rebate: I propose increasing the income eligibility for the homestead property tax rebate from $17,200 to $25,000 and adjusting the refund table to provide larger refunds. This will allow more individuals to become eligible for homestead tax rebates beginning in 1998. In addition, I have directed the Department of Revenue to simplify the application procedures. Expansion of Sales Tax on Food Rebate: No one can argue that sales tax on food most impacts low-income Kansans. Those families with the least to spend must dedicate a significant portion of their budgets to food and are therefore taxed at a disproportionately high level. The current qualifying income level is $13,000. I recommend the level be raised to $25,000, with the average refund rising from $43 to $85 per household. Again, this will be accompanied by a directive to the Department of Revenue to simplify the process. Repeal of Sales Tax on Remodeling: In 1995, I proposed and you adopted a repeal of sales tax used in labor for new construction. I ask you to continue our strong efforts for tax equity by repealing the sales tax on labor used in remodeling--both residential and commercial. General Property Tax Reduction: Reducing the uniform school finance levy is important, and I promised last year to reduce it as aggressively as our finances would allow. Fulfilling that promise, I am recommending the levy be reduced from 33 to 29 mills in 1997, and from 31 to 25 mills in 1998. This 30 percent reduction, coupled with the previously passed 50 percent reduction of property taxes paid onautomobiles, will provide a cumulative $775 million of property tax relief to Kansans through the year 2000. Singles' Income Tax Rates: The Kansas Supreme Court recently held that the differential between single and married taxpayers was constitutional. This was an important case in establishing the state's rights in developing tax policy, and is a case it was both appropriate and necessary for the state to pursue. However, the fact that it is legal does not necessarily mean it is fair. I have weighed the issue and am firm in my belief that it is not fair. Is it fair that a single parent, struggling to keep a family intact, has more taken from his or her paycheck? Is it fair that the state adds to the burden of grief caused by the loss of a spouse by raising the survivor's income tax? On behalf of the 500,000 Kansans who file as single taxpayers, I urge this legislature to adopt my proposal to lower the rates of single taxpayers over the next three years to match those rates paid by married Kansans. My tax reduction package offers for the people of this state more than $112 million in new tax cuts over and above that provided for in the past two years. Additionally, I recommend to you we continue for a fourth year the moratorium on unemployment taxes. Allowing businesses to reinvest these dollars will bring total tax reductions for 1998 to $436 million, delivering to the people of Kansas--through the year 2000--more than $2 billion in tax relief. Given that these tax cuts will be provided without offsetting tax increases, our success in reducing the tax burden for Kansans is unprecedented in the history of this state. Before leaving the subject of tax reduction, I must make two points absolutely clear. First, as I said in my message last year, and am even more committed to this year, I will veto any tax reduction scheme that raises some taxes to lower others. There will be no ``robbing Peter to pay Paul'' while I am Governor. The second issue concerns our 7.5 percent ending balance required by law. The legislators who worked hard to get this balance requirement in the statute books clearly anticipated a need to reserve state funds for unexpected expenses--be it a natural disaster, a lawsuit ruling or a major economic downturn. In such situations, it may be prudent to use the state's ending balances to meet those urgent needs. We as policy makers must be careful to consider the fiscal integrity of the state when we suggest tampering with the ending balance. In a year of a conservative 2.4 percent budget increase and a tax package that provides more than $112 million of new relief to Kansans, I am reluctant to deviate from this sound, conservative fiscal policy. Conclusion I believe I have presented to you a responsive budget, progressive initiatives and aggressive tax cuts that will serve all Kansans, as they are balanced and fair. To speculate on the economic security of this state by spending dollars that do not exist is inappropriate. There is no Kansas charge card. Speculation about the future is neither cause to abandon conservative economic principles, nor cause for an unwarranted reduction in the state's protection against economic calamity--the 7.5 percent ending balance. I encourage us all to debate priorities within the framework of a conservative, responsive budget and reasonable and responsible tax reductions as proposed in this message. This legislature and this Administration have demonstrated they can achieve good things when working together. I look forward to sharing our continued success. I wish this legislature well in its deliberations and send my best wishes to all Kansans for a healthy and successful 1997. On motion of Rep. Jennison, the House adjourned until 11:00 a.m., Tuesday, January 14, 1997. CHARLENE SWANSON, Journal Clerk. JANET E. JONES, Chief Clerk. +--+ | | +--+