J o u r n a l o f t h e H o u s e TWENTY-EIGHTH DAY -------- HALL OF THE HOUSE OF REPRESENTATIVES TOPEKA, KAN., Thursday, February 20, 1997, 10:00 a.m. The House met pursuant to adjournment with Speaker Shallenburger in the chair. The roll was called with 124 members present. Reps. Dean and Edmonds were excused on excused absence by the Speaker for the Evening Session. Prayer by Chaplain Washington: Heavenly Father, From the law that You gave in Deuteronomy 15:4-11, there is to be a balance of concern . . . the survival of the fittest, as well as the protection of the weakest. You have said that there will always be needy people in the land, but let us not acquiesce to a permanence of their poverty. Please infuse these men and women with that same Divine balance of concern. To Your glory and honor . . . and to the good of all the people. I come to You in the Name of Jesus. Amen. REFERENCE OF BILLS AND CONCURRENT RESOLUTIONS The following bills and resolutions were referred to committees as indicated: Federal and State Affairs: HB 2487. Governmental Organization and Elections: HB 2488. Judiciary: HB 2485, 2486. MESSAGE FROM THE SENATE Announcing passage of SB 6, 43, 44, 69, 87, 101, 116, 122, 130, 133, 282. INTRODUCTION OF SENATE BILLS AND CONCURRENT RESOLUTIONS The following Senate bills were introduced and read by title: SB 6, 43, 44, 69, 87, 101, 116, 122, 130, 133, 282. CONSENT CALENDAR Objection was made to HB 2303 appearing on the Consent Calendar; the bill was placed on the calendar under the heading of General Orders. No objection was made to HB 2026, 2065, 2176; HCR 5015; SB 62, 77 appearing on the Consent Calendar for the first day. No objection was made to HB 2219, 2288 appearing on the Consent Calendar for the second day. FINAL ACTION ON BILLS AND CONCURRENT RESOLUTIONS HB 2080, An act concerning the Riley county law enforcement agency; relating to membership therein and the financing thereof; amending K.S.A. 19-4427 and 19-4443 and repealing the existing sections, was considered on final action. On roll call, the vote was: Yeas 122; Nays 2; Present but not voting 0; Absent or not voting 0. Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Bradley, Burroughs, Campbell, Carmody, Compton, Correll, Cox, Crow, Dahl, Dean, Dillon, 186 JOURNAL OF THE HOUSE Donovan, Dreher, Edmonds, Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Freeborn, Garner, Geringer, Gilbert, Gilmore, Glasscock, Grant, Haley, Hayzlett, Helgerson, Henderson, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, Johnson, Johnston, Kejr, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, Lloyd, J. Long, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKinney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Packer, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson. Nays: McKechnie, Spangler. Present but not voting: None. Absent or not voting: None. The bill passed. HB 2098, An act concerning school districts; authorizing the enrollment therein of nonresident pupils under certain circumstances; relating to transportation of such pupils to and from school; amending K.S.A. 72-8303 and 72-8309, and K.S.A. 1996 Supp. 72-8302 and repealing the existing sections, was considered on final action. On roll call, the vote was: Yeas 100; Nays 24; Present but not voting 0; Absent or not voting 0. Yeas: Adkins, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Bradley, Burroughs, Campbell, Carmody, Compton, Cox, Crow, Dean, Dillon, Donovan, Edmonds, Empson, Faber, Farmer, Findley, Flaharty, Flora, Flower, Franklin, Freeborn, Geringer, Gilbert, Gilmore, Glasscock, Haley, Hayzlett, Helgerson, Henderson, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, Johnston, Kejr, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, J. Long, P. Long, Mayans, Mays, McClure, McCreary, McKechnie, McKinney, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Packer, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Presta, Ray, Reardon, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Tanner, Thimesch, Toplikar, Vickrey, Wagle, Wells, Welshimer, Wempe, Wilk, Wilson. Nays: Alldritt, Correll, Dahl, Dreher, Feuerborn, Garner, Grant, Henry, Johnson, Kirk, Klein, Lloyd, Mason, Minor, Palmer, Pauls, Powers, Reinhardt, Swenson, Toelkes, Tomlinson, Vining, Weber, Weiland. Present but not voting: None. Absent or not voting: None. The bill passed, as amended. HB 2269, An act enacting the woman's-right-to-know act; establishing requirements for informed consent relating to abortions; providing penalties for violations; amending K.S.A. 65-6701 and K.S.A. 1996 Supp. 65-2836 and repealing the existing section; also repealing K.S.A. 65-6706, was considered on final action. On roll call, the vote was: Yeas 86; Nays 38; Present but not voting 0; Absent or not voting 0. Yeas: Alldritt, Aurand, Ballou, Boston, Bradley, Burroughs, Campbell, Carmody, Compton, Crow, Dahl, Dean, Donovan, Edmonds, Faber, Farmer, Flower, Franklin, Freeborn, Garner, Geringer, Gilmore, Grant, Hayzlett, Helgerson, Henry, Holmes, Horst, Howell, Humerickhouse, Hutchins, Jennison, Kejr, Phill Kline, Landwehr, Larkin, Lloyd, J. Long, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKinney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Packer, Palmer, Pauls, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, Ray, Reardon, Reinhardt, Ruff, Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Shultz, Swenson, Tanner, Thimesch, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wempe, Wilk, Wilson. Nays: Adkins, Allen, Ballard, Beggs, Benlon, Correll, Cox, Dillon, Dreher, Empson, Feuerborn, Findley, Flaharty, Flora, Gilbert, Glasscock, Haley, Henderson, Huff, Johnson, February 20, 1997 187 Johnston, Kirk, Klein, Phil Kline, Krehbiel, Kuether, Lane, E. Peterson, Samuelson, Sawyer, Sloan, Spangler, Stone, Storm, Toelkes, Tomlinson, Wells, Welshimer. Present but not voting: None. Absent or not voting: None. The bill passed, as amended. EXPLANATION OF VOTE Mr. Speaker: HB 2269 is a misnomer. Entitled the Women's Right to Know it presupposes that the mothers, daughters, wives . . . of Kansas cannot make rational reproductive health choices on their own. I trust Kansas women. I respect their privacy and their decisions affecting their own lives. This bill mislabels an ``embryo'' with the inflammatory language of ``your child.'' (Current statute defines ``viability'' as life.) It wastes a physician's time needlessly. On behalf of the women in crisis pregnancies, especially in rural areas of our state who will maybe seek a risky procedure or go through with bringing to term an unwanted birth, I vote No on HB 2269.--David Haley On motion of Rep. Jennison, the House went into Committee of the Whole, with Rep. O'Neal in the chair. COMMITTEE OF THE WHOLE On motion of Rep. O'Neal, Committee of the Whole report, as follows, was adopted: Recommended that on motion of Rep. Edmonds HB 2031 be amended on page 3, after line 22, by inserting a new section to read as follows: `Sec. 1. K.S.A. 1996 Supp. 79-412 is hereby amended to read as follows: 79-412. It shall be the duty of the county or district appraiser to value the land and improvements; but the value of the land and improvements shall be entered on the assessment roll in a single aggregate, except as hereinafter provided. Improvements owned by entities other than a city and located on land owned by a city may be assessed to the owners of such improvements, and the taxes imposed on such improvements may be collected by levy and sale of the interests of such owners the same as in cases of the collection of taxes on personal property.''; By renumbering existing sections accordingly; Also on page 3, in line 23, before ``and'' by inserting ``, 79-412''; In the title, in line 9, by striking all after ``to''; in line 10, by striking all before the semicolon and inserting ``property taxation''; in line 11, after ``72-6431'' by inserting ``, 79-412''; Also, on motion of Rep. Mason to amend HB 2031, the motion was withdrawn. Also, on motion of Rep. Carmody HB 2031 be amended on page 1, in line 29, by striking all after ``at''; by striking all in line 30; in line 31, by striking all before the period and inserting ``the rate determined and published by the director of accounts and reports on or before October 15, 1997, in the 1997-98 school year, which is equal to the quotient of the revenue received pursuant to this subsection in the 1996-97 school year less $100,000,000 divided by the assessed valuation of taxable tangible property statewide''; On page 2, by striking all in lines 3 through 43; On page 3, by striking all in lines 1 through 22 and inserting a new section to read as follows: ``New Sec. 2. On or after the date prescribed by K.S.A. 79-1604, and amendments thereto, for the preparation by the county clerk and submission to the director of property valuation of the abstract of the assessment rolls of the county, the county clerk, if such rolls evidence an increase in total assessed valuation over the total assessed valuation of the next preceding year, shall compute a tax levy rate for every taxing subdivision based upon the amount of ad valorem tax certified on or before August 25 of the next preceding year by such subdivision to the county clerk for levy pursuant to K.S.A. 79-1801, and amendments thereto. Such rates shall be published in a newspaper of general circulation in the county once each week for two consecutive weeks prior to August 1 of each year.''; Also, on page 3, in line 23, by striking ``, 72-6431a and 79-5105'' and inserting ``and 726431a''; 188 JOURNAL OF THE HOUSE In the title, in line 9, by striking ``unified school districts'' and inserting ``certain political subdivisions of the state''; in line 11, by striking ``and 79-5105''; also, in line 11, by striking ``sections'' and inserting ``section''; Also, roll call was demanded on motion of Rep. Powell to amend HB 2031 on page 1, in line 30, by striking ``29'' and inserting ``20''; in line 31, by striking all before the period; On page 2, by striking all in lines 3 through 43; On page 3, by striking all in lines 1 through 22, and inserting the following. ``New Sec. 2. (a) During the following fiscal year, the director of the budget, after consultation with the commissioner of education, shall certify to the director of accounts and reports monthly amounts for revenue transfer from the state general fund to the state school district finance fund in an amount not to exceed the following total amount within the specified fiscal year: For the fiscal year beginning on July 1, 1997..............$1,517,147,665; (b) There is hereby created a state school district supplemental aid finance fund within the state treasury. During the following fiscal year, the director of the budget, after consultation with the commissioner of education, shall certify to the director of accounts and reports monthly amounts for revenue transfer from the state general fund to the state school district supplemental aid finance fund in an amount not to exceed the following total amount within the specified fiscal year: For the fiscal year beginning on July 1, 1997..............$52,089,000.''. Also on page 3, in line 23, by striking ``, 72-6431a and 79-5105'' and inserting ``and 726431a''; In the title, in line 11, by striking ``and 79-5105''; also, in line 11, by striking ``sections'' and inserting ``section''; On roll call, the vote was: Yeas 54; Nays 70; Present but not voting 0; Absent or not voting 0. Yeas: Aurand, Ballou, Boston, Bradley, Campbell, Compton, Dahl, Donovan, Edmonds, Faber, Farmer, Flower, Franklin, Freeborn, Geringer, Hayzlett, Holmes, Horst, Howell, Humerickhouse, Hutchins, Jennison, Johnson, Kejr, Phill Kline, Landwehr, Lloyd, P. Long, Mason, Mayans, Mays, McCreary, Mollenkamp, Morrison, Myers, Neufeld, O'Connor, O'Neal, Packer, Palmer, J. Peterson, Powell, Powers, Presta, Schwartz, Shallenburger, Shore, Shultz, Swenson, Toplikar, Vickrey, Vining, Wagle, Weber. Nays: Adkins, Alldritt, Allen, Ballard, Beggs, Benlon, Burroughs, Carmody, Correll, Cox, Crow, Dean, Dillon, Dreher, Empson, Feuerborn, Findley, Flaharty, Flora, Garner, Gilbert, Gilmore, Glasscock, Grant, Haley, Helgerson, Henderson, Henry, Huff, Johnston, Kirk, Klein, Phil Kline, Krehbiel, Kuether, Lane, Larkin, J. Long, McClure, McKechnie, McKinney, Minor, Nichols, Pauls, E. Peterson, Phelps, Pottorff, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Sharp, Showalter, Shriver, Sloan, Spangler, Stone, Storm, Tanner, Thimesch, Toelkes, Tomlinson, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson. Present but not voting: None. Absent or not voting: None. The motion of Rep. Powell did not prevail. Also, roll call was demanded on motion of Rep. Mays to amend HB 2031 on page 1, after line 14, by inserting a new section to read as follows: ``New Section 1. (a) For all taxable years commencing after December 31, 1996, the following described property, to the extent herein specified, shall be and is hereby exempt from the property tax levied pursuant to the provisions of K.S.A. 1996 Supp. 72-6431, and amendments thereto: Property used as a single family residence. (b) During the following fiscal year, the director of the budget, after consultation with the commissioner of education, shall certify to the director of accounts and reports monthly amounts for revenue transfer from the state general fund to the state school district finance fund in an amount not to exceed the following total amount within the specified fiscal year: For the fiscal year beginning on July 1, 1997..............$1,551,706,531; (c) There is hereby created a state school district supplemental aid finance fund within the state treasury. During the following fiscal year, the director of the budget, after February 20, 1997 189 consultation with the commissioner of education, shall certify to the director of accounts and reports monthly amounts for revenue transfer from the state general fund to the state school district supplemental aid finance fund in an amount not to exceed the following total amount within the specified fiscal year: For the fiscal year beginning on July 1, 1997..............$52,089,000;''; Also, on page 1, by striking all in line 30; in line 31, by striking ``and''; also, in line 31, by striking ``1998-99'' and inserting ``1997-98''; On page 2, by striking all in lines 3 through 43; On page 3, by striking all in lines 1 through 22; in line 23, by striking ``, 72-6431a and 795105'' and inserting ``and 72-6431a''; By renumbering existing sections accordingly; In the title, in line 9, by striking all after ``ACT''; in line 10, by striking all before the semicolon and inserting ``enacting the property tax relief act of 1997''; in line 11, by striking ``and 79-5105''; also, in line 11, by striking ``sections'' and inserting ``section''; On roll call, the vote was: Yeas 42; Nays 81; Present but not voting 0; Absent or not voting 1. Yeas: Aurand, Ballou, Boston, Bradley, Campbell, Compton, Dahl, Donovan, Edmonds, Faber, Farmer, Flower, Geringer, Hayzlett, Howell, Hutchins, Jennison, Kejr, Phill Kline, Landwehr, P. Long, Mason, Mayans, Mays, McCreary, Mollenkamp, Morrison, Myers, Neufeld, O'Connor, O'Neal, Packer, Palmer, Powell, Presta, Shallenburger, Swenson, Toplikar, Vickrey, Vining, Wagle, Weber. Nays: Adkins, Alldritt, Allen, Ballard, Beggs, Benlon, Burroughs, Carmody, Correll, Cox, Crow, Dean, Dreher, Empson, Feuerborn, Findley, Flaharty, Flora, Franklin, Freeborn, Garner, Gilbert, Gilmore, Glasscock, Grant, Haley, Helgerson, Henderson, Henry, Holmes, Horst, Huff, Humerickhouse, Johnson, Johnston, Kirk, Klein, Phil Kline, Krehbiel, Kuether, Lane, Larkin, Lloyd, J. Long, McClure, McKechnie, McKinney, Minor, Nichols, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powers, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Tanner, Thimesch, Toelkes, Tomlinson, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson. Present but not voting: None. Absent or not voting: Dillon. The motion of Rep. Mays did not prevail. Also, roll call was demanded on further motion of Rep. Mays and HB 2031 be amended on page 1, after line 14, by inserting a new section to read as follows: ``New Section 1. (a) For tax year 1997, the following described property, to the extent herein specified, shall be and is hereby exempt from the property tax levied pursuant to the provisions of K.S.A. 1996 Supp. 72-6431, and amendments thereto: Property used as a single family residence, to the extent of $50,000 of its appraised valuation. (b) During the following fiscal year, the director of the budget, after consultation with the commissioner of education, shall certify to the director of accounts and reports monthly amounts for revenue transfer from the state general fund to the state school district finance fund in an amount not to exceed the following total amount within the specified fiscal year: For the fiscal year beginning on July 1, 1997..............$1,509,987,095; (c) There is hereby created a state school district supplemental aid finance fund within the state treasury. During the following fiscal year, the director of the budget, after consultation with the commissioner of education, shall certify to the director of accounts and reports monthly amounts for revenue transfer from the state general fund to the state school district supplemental aid finance fund in an amount not to exceed the following total amount within the specified fiscal year: For the fiscal year beginning on July 1, 1997.................$52,089,000; (d) There is hereby created a state school district enhancement fund within the state treasury. During each of the following fiscal years, the director of the budget, after consultation with the commissioner of education, shall certify to the director of accounts and reports monthly amounts for revenue transfer from the state general fund to the state 190 JOURNAL OF THE HOUSE school district enhancement fund in an amount not to exceed the following total amount within the specified fiscal year: For the fiscal year beginning on July 1, 1997..............$28,800,000;''; Also, on page 1, in line 30, by striking ``29'' and inserting ``27''; in line 31, by striking all before the period; On page 2, by striking all in lines 3 through 43; On page 3, by striking all in lines 1 through 22; in line 23, by striking ``, 72-6431a and 795105'' and inserting ``and 72-6431a''; By renumbering existing sections accordingly; In the title, in line 9, by striking all after ``ACT''; in line 10, by striking all before the semicolon and inserting ``enacting the property tax relief act of 1997''; in line 11, by striking ``and 79-5105''; also, in line 11, by striking ``sections'' and inserting ``section''; On roll call, the vote was: Yeas 94; Nays 30; Present but not voting 0; Absent or not voting 0. Yeas: Alldritt, Allen, Ballou, Boston, Bradley, Burroughs, Campbell, Compton, Correll, Crow, Dahl, Dillon, Donovan, Dreher, Edmonds, Faber, Farmer, Feuerborn, Flaharty, Flora, Flower, Franklin, Freeborn, Garner, Geringer, Gilmore, Grant, Haley, Hayzlett, Helgerson, Henderson, Henry, Holmes, Horst, Howell, Humerickhouse, Hutchins, Jennison, Johnson, Johnston, Kejr, Kirk, Klein, Phill Kline, Kuether, Landwehr, J. Long, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Packer, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, Ruff, Schwartz, Shallenburger, Sharp, Showalter, Shriver, Shultz, Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wilson. Nays: Adkins, Aurand, Ballard, Beggs, Benlon, Carmody, Cox, Dean, Empson, Findley, Gilbert, Glasscock, Huff, Phil Kline, Krehbiel, Lane, Larkin, Lloyd, McKinney, Minor, Ray, Reardon, Reinhardt, Samuelson, Sawyer, Shore, Sloan, Tomlinson, Wempe, Wilk. Present but not voting: None. Absent or not voting: None. The motion of Rep. Mays prevailed, and rose and reported progress (see Committee of the Whole, Evening Session). REPORTS OF STANDING COMMITTEES The Committee on Business, Commerce and Labor recommends HB 2011 be passed. The Committee on Fiscal Oversight recommends HB 2403 be passed. The Committee on Insurance recommends HB 2329 be passed. The Committee on Taxation recommends HB 2107 be amended on page 1, after line 17, by inserting a new section to read as follows: ``Section 1. K.S.A. 1996 Supp. 79-3603 is hereby amended to read as follows: 79-3603. For the privilege of engaging in the business of selling tangible personal property at retail in this state or rendering or furnishing any of the services taxable under this act, there is hereby levied and there shall be collected and paid a tax at the rate of 4.9%: (a) The gross receipts received from the sale of tangible personal property at retail within this state; (b) (1) the gross receipts from intrastate telephone or telegraph services and (2) the gross receipts received from the sale of interstate telephone or telegraph services, which (A) originate within this state and terminate outside the state and are billed to a customer's telephone number or account in this state; or (B) originate outside this state and terminate within this state and are billed to a customer's telephone number or account in this state except that the sale of interstate telephone or telegraph service does not include: (A) Any interstate incoming or outgoing wide area telephone service or wide area transmission type service which entitles the subscriber to make or receive an unlimited number of communications to or from persons having telephone service in a specified area which is outside the state in which the station provided this service is located; (B) any interstate private communications service to the persons contracting for the receipt of that service that entitles the purchaser to exclusive or priority use of a communications channel or group February 20, 1997 191 of channels between exchanges; (C) any value-added nonvoice service in which computer processing applications are used to act on the form, content, code or protocol of the information to be transmitted; (D) any telecommunication service to a provider of telecommunication services which will be used to render telecommunications services, including carrier access services; or (E) any service or transaction defined in this section among entities classified as members of an affiliated group as provided by federal law (U.S.C. Section 1504); (c) the gross receipts from the sale or furnishing of gas, water, electricity and heat, which sale is not otherwise exempt from taxation under the provisions of this act, and whether furnished by municipally or privately owned utilities; (d) the gross receipts from the sale of meals or drinks furnished at any private club, drinking establishment, catered event, restaurant, eating house, dining car, hotel, drugstore or other place where meals or drinks are regularly sold to the public; (e) the gross receipts from the sale of admissions to any place providing amusement, entertainment or recreation services including admissions to state, county, district and local fairs, but such tax shall not be levied and collected upon the gross receipts received from sales of admissions to any cultural and historical event which occurs triennially; (f) the gross receipts from the operation of any coin-operated device dispensing or providing tangible personal property, amusement or other services except laundry services, whether automatic or manually operated; (g) the gross receipts from the service of renting of rooms by hotels, as defined by K.S.A. 36-501 and amendments thereto; (h) the gross receipts from the service of renting or leasing of tangible personal property except such tax shall not apply to the renting or leasing of machinery, equipment or other personal property owned by a city and purchased from the proceeds of industrial revenue bonds issued prior to July 1, 1973, in accordance with the provisions of K.S.A. 12-1740 through 12-1749, and amendments thereto, and any city or lessee renting or leasing such machinery, equipment or other personal property purchased with the proceeds of such bonds who shall have paid a tax under the provisions of this section upon sales made prior to July 1, 1973, shall be entitled to a refund from the sales tax refund fund of all taxes paid thereon; (i) the gross receipts from the rendering of dry cleaning, pressing, dyeing and laundry services except laundry services rendered through a coin-operated device whether automatic or manually operated; (j) the gross receipts from the rendering of the services of washing and washing and waxing of vehicles; (k) the gross receipts from cable, community antennae and other subscriber radio and television services; (l) the gross receipts received from the sales of tangible personal property to all contractors, subcontractors or repairmen of materials and supplies for use by them in erecting structures for others, or building on, or otherwise improving, altering, or repairing real or personal property of others; (m) the gross receipts received from fees and charges by public and private clubs, drinking establishments, organizations and businesses for participation in sports, games and other recreational activities, but such tax shall not be levied and collected upon the gross receipts received from: (1) Fees and charges by any political subdivision, by any organization exempt from property taxation pursuant to paragraph ninth of K.S.A. 79-201, and amendments thereto, or by any youth recreation organization exclusively providing services to persons 18 years of age or younger which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, for participation in sports, games and other recreational activities; and (2) entry fees and charges for participation in a special event or tournament sanctioned by a national sporting association to which spectators are charged an admission which is taxable pursuant to subsection (e); (n) the gross receipts received from dues charged by public and private clubs, drinking establishments, organizations and businesses, payment of which entitles a member to the use of facilities for recreation or entertainment, but such tax shall not be levied and collected 192 JOURNAL OF THE HOUSE upon the gross receipts received from dues charged by any organization exempt from property taxation pursuant to paragraph ninth of K.S.A. 79-201, and amendments thereto; (o) the gross receipts received from the isolated or occasional sale of motor vehicles or trailers but not including: (1) The transfer of motor vehicles or trailers by a person to a corporation solely in exchange for stock securities in such corporation; or (2) the transfer of motor vehicles or trailers by one corporation to another when all of the assets of such corporation are transferred to such other corporation; or (3) the sale of motor vehicles or trailers which are subject to taxation pursuant to the provisions of K.S.A. 79-5101 et seq., and amendments thereto, by an immediate family member to another immediate family member. For the purposes of clause (3), immediate family member means lineal ascendants or descendants, and their spouses. In determining the base for computing the tax on such isolated or occasional sale, the fair market value of any motor vehicle or trailer traded in by the purchaser to the seller may be deducted from the selling price; (p) the gross receipts received for the service of installing or applying tangible personal property which when installed or applied is not being held for sale in the regular course of business, and whether or not such tangible personal property when installed or applied remains tangible personal property or becomes a part of real estate, except that no tax shall be imposed upon the service of installing or applying tangible personal property in connection with the original construction of a building or facility or the construction, reconstruction, restoration, replacement or repair of a bridge or highway. For the purposes of this subsection: (1) ``Original construction'' shall mean the first or initial construction of a new building or facility. The term ``original construction'' shall include the addition of an entire room or floor to any existing building or facility, the completion of any unfinished portion of any existing building or facility and the restoration, reconstruction or replacement of a building or facility damaged or destroyed by fire, flood, tornado, lightning, explosion or earthquake, but such term shall not include replacement, remodeling, restoration, renovation or reconstruction under any other circumstances; (2) ``building'' shall mean only those enclosures within which individuals customarily live or are employed, or which are customarily used to house machinery, equipment or other property, and including the land improvements immediately surrounding such building; and (3) ``facility'' shall mean a mill, plant, refinery, oil or gas well, water well, feedlot or any conveyance, transmission or distribution line of any cooperative, nonprofit, membership corporation organized under or subject to the provisions of K.S.A. 17-4601 et seq., and amendments thereto, or of any municipal or quasi-municipal corporation, including the land improvements immediately surrounding such facility; (q) the gross receipts received for the service of repairing, servicing, altering or maintaining tangible personal property, except computer software described in subsection (s), which when such services are rendered is not being held for sale in the regular course of business, and whether or not any tangible personal property is transferred in connection therewith. The tax imposed by this subsection shall be applicable to the services of repairing, servicing, altering or maintaining an item of tangible personal property which has been and is fastened to, connected with or built into real property; (r) the gross receipts from fees or charges made under service or maintenance agreement contracts for services, charges for the providing of which are taxable under the provisions of subsection (p) or (q); (s) the gross receipts received from the sale of computer software, and the sale of the services of modifying, altering, updating or maintaining computer software. As used in this subsection, ``computer software'' means information and directions loaded into a computer which dictate different functions to be performed by the computer. Computer software includes any canned or prewritten program which is held or existing for general or repeated sale, even if the program was originally developed for a single end user as custom computer software. The sale of computer software or services does not include: (1) The initial sale of any custom computer program which is originally developed for the exclusive use of a single end user; or (2) those services rendered in the modification of computer software when the modification is developed exclusively for a single end user only to the extent of the modification and only to the extent that the actual amount charged for the modification is February 20, 1997 193 separately stated on invoices, statements and other billing documents provided to the end user. The services of modification, alteration, updating and maintenance of computer software shall only include the modification, alteration, updating and maintenance of computer software taxable under this subsection whether or not the services are actually provided; and (t) the gross receipts received for telephone answering services, including mobile phone services, beeper services and other similar services.''; By renumbering existing sections accordingly; Also on page 1, in line 40, by striking ``water,''; On page 5, in line 38, after the comma, by inserting ``by a rural water district organized or operating under the authority of K.S.A. 82a-612, and amendments thereto, or by a water supply district organized or operating under authority of K.S.A. 19-3501 et seq., and amendments thereto, or K.S.A. 19-3522 et seq., and amendments thereto,''; On page 10, in line 31, by striking ``and''; in line 35, by striking the period and inserting a semicolon; after line 35, by inserting the following: ``(vv) all sales of tangible personal property purchased by any of the following organizations which are exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, for the following purposes, and all sales of any such property by or on behalf of any such organization for any such purpose: (1) The American Heart Association, Kansas Affiliate, Inc. for the purposes of providing education, training, certification in emergency cardiac care, research and other related services to reduce disability and death from cardiovascular diseases and stroke; (2) the Kansas Alliance for the Mentally Ill, Inc. for the purpose of advocacy for persons with mental illness and to education, research and support for their families; (3) the Kansas Mental Illness Awareness Council for the purposes of advocacy for persons who are mentally ill and to education, research, and support for them and their families; (4) the American Diabetes Assoc.-Kansas Affiliate, Inc. for the purpose of eliminating diabetes through medical research, public education focusing on disease prevention and education, patient education including information on coping with diabetes, and professional education and training; and (5) the American Lung Association of Kansas, Inc. for the purpose of eliminating all lung diseases through medical research, public education including information on coping with lung diseases, professional education and training related to lung disease and other related services to reduce the incidence of disability and death due to lung disease; (ww) all sales of tangible personal property purchased by the Habitat for Humanities for the exclusive use of being incorporated within a housing project constructed by such organization; (xx) all sales of tangible personal property by members of the Girl Scouts of America the purpose of which is to finance their activities and programs; (yy) all sales of tangible personal property and services purchased by a parent-teacher association or organization, and all sales of tangible personal property by or on behalf of such association or organization; (zz) all sales of food for human consumption by an organization which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, pursuant to a food distribution program which offers such food at a price below cost in exchange for the performance of community service by the purchaser thereof; (aaa) all sales of tangible personal property and services purchased by or on behalf of any rural volunteer fire-fighting organization for use exclusively in the performance of its duties and functions; and (bbb) all sales of machinery and equipment used directly and primarily for the purpose of producing a broadcast signal or is such that the failure of the machinery or equipment to operate would cause broadcasting to cease. For purposes of this subsection, machinery and equipment shall include, but not be limited to, that required by rules and regulations of the federal communications commission, and all sales of electricity which are essential or necessary for the purpose of producing a broadcast signal or is such that the failure of the electricity would cause broadcasting to cease.''; 194 JOURNAL OF THE HOUSE Also on page 10, in line 36, by striking ``79-3606 is'' and inserting ``79-3603 and 79-3606 are''; In the title, in line 13, by striking all after the semicolon; in line 14, by striking all before the semicolon and inserting ``concerning exemptions therefrom''; also in line 14, after ``Supp.'' by inserting ``79-3603 and''; in line 15, by striking ``section'' and inserting ``sections''; and the bill be passed as amended. The Committee on Tourism recommends HB 2350 be passed. The Committee on Tourism recommends HB 2324 be not passed. The Committee on Tourism recommends HB 2188 be amended on page 1, in line 14, by striking ``The'' and inserting ``Contingent upon a favorable response from federal agencies regarding development of shared resources, the''; in line 22, after ``is'' by inserting ``then''; and the bill be passed as amended. (Having been referred separately, HB 2188 is now in Committee on Environment.) The Committee on Tourism recommends HB 2348 be amended on page 2, in line 1, by striking all after the comma; in line 2, by striking all before and including the comma; in line 22, by striking ``(c)'' and inserting ``Sec. 3. (a)''; in line 24, after ``council'' by inserting ``on tourism''; in line 25, by striking ``(d)'' and inserting ``(b)''; in line 29, after ``thereto'' by inserting ``out of the budget appropriations for the department of commerce and housing''; in line 30, by striking ``3.'' and inserting ``4.''; in line 32, after ``thereto'' by inserting ``which are appropriated to the department of commerce and housing''; in line 33, by striking ``4.'' and inserting ``5.''; and the bill be passed as amended. The Committee on Tourism recommends HB 2374 be amended on page 1, in line 41, by striking ``may'' and inserting ``shall''; in line 42, by striking ``, but may not add additional pro-''; in line 43, by striking all before the period; On page 2, in line 22, by striking all after ``(b)''; by striking all in lines 23 through 26; in line 27, by striking ``(d)''; before line 30, by inserting: ``New Sec. 3. (a) The council on tourism shall oversee all matters concerning the state tourism fund and expenditures therefrom. (b) The council shall, by a majority vote, determine for inclusion in the department of commerce and housing budget expenditures from the state tourism fund.''; By renumbering sections accordingly; Also on page 2, in line 30, by striking ``(e)'' and inserting ``(c)''; in line 34, after ``thereto'' by inserting ``out of the budget appropriations for the department of commerce and housing''; and the bill be passed as amended. The Committee on Transportation recommends HB 2203 be passed. The Committee on Transportation recommends HB 2010 be amended on page 1, in line 21, following ``licenses'' by inserting ``and nondrivers' identification cards''; On page 2, in line 11, preceding ``(C)'' by inserting ``or''; in line 14, by striking all following the semicolon; by striking all of lines 15 through 20; in line 21, by striking all preceding the period; On page 4, in line 19, by striking ``driver''; and the bill be passed as amended. The Committee on Transportation recommends HB 2073 be amended on page 1, in line 18, by striking ``or C,'' and inserting ``, C or M''; On page 3, in line 5, following the semicolon, by inserting ``or''; in line 6, by striking all following ``license''; by striking all of lines 7 and 8; in line 9, by striking all preceding the comma; in line 10, by striking ``$12'' and inserting ``$10''; On page 4, in line 31, by striking all preceding the colon and inserting ``shall expire as follows''; in line 32, by striking ``Who'' and inserting ``Licenses issued to persons who''; in line 34, by striking ``or''; in line 35, preceding ``who'' by inserting ``licenses issued to persons''; in line 37, preceding the period, by inserting ``; or (3) any commercial drivers license shall expire on the fourth anniversary of the date of birth of the licensee which is nearest the date of application``; in line 39, by striking ``paragraph (2)'' and inserting ``paragraphs (2) and (3)''; On page 7, in line 41, preceding ``its'' by inserting ``January 1, 1998, and''; and the bill be passed as amended. February 20, 1997 195 The Committee on Transportation recommends HB 2170 be amended on page 1, in line 27, by striking ``a'' and inserting ``an United States military''; in line 28, by striking all preceding the period; in line 33, by striking ``the'' and inserting ``such''; On page 2, in line 10, preceding ``its'' by inserting ``January 1, 1998, and''; Also on page 1, in the title, in line 15, following ``for'' by inserting ``United States military''; also in line 15, by striking all following ``veterans''; in line 16, by striking all preceding the period; and the bill be passed as amended. The Committee on Transportation recommends HB 2202 be amended on page 2, in line 15, preceding the semicolon by inserting ``, or any fire truck operated by a volunteer fire department''; and the bill be passed as amended. The Committee on Transportation recommends HB 2280 be amended on page 1, in line 22, by striking ``12'' and inserting ``20''; in line 23, by striking the colon; in line 24, by striking ``(1) Any'' and inserting ``any''; in line 25, by striking ``12-year'' and inserting ``20year''; in line 26, by striking the semicolon; by striking all of lines 27 through 33; in line 34, by striking all before the period; by striking all of lines 40 through 43; On page 2, by striking all of lines 1 through 3; in line 4, by striking ``(c)'' and inserting ``(b)''; by striking all of lines 12 through 15; and the bill be passed as amended. Upon unanimous consent, the House referred back to the regular order of business, Introduction of Bills and Concurrent Resolutions. INTRODUCTION OF BILLS AND CONCURRENT RESOLUTIONS The following bills and concurrent resolution were introduced and read by title: HB 2489, An act relating to property taxation; concerning the exemption therefrom for housing for the elderly; amending K.S.A. 1996 Supp. 79-201b and repealing the existing section, by Committee on Federal and State Affairs. HB 2490, An act concerning the practice of geology; providing for licensure and regulation as a technical profession; amending K.S.A. 74-7005 and 74-7006 and K.S.A. 1996 Supp. 74-7003 and 74-7013 and repealing the existing sections, by Committee on Federal and State Affairs. HB 2491, An act concerning insurance; enacting the consumer insurance sales act, by Committee on Federal and State Affairs. HB 2492, An act relating to affiliation of community colleges and technical colleges with state educational institutions under the control and supervision of the state board of regents; prescribing certain procedures and guidelines therefor, by Committee on Appropriations. HB 2493, An act relating to Washburn university of Topeka; establishing Washburn university as a separate state educational institution under the control and supervision of the state board of regents; providing for the conveyance of property to the state board of regents; authorizing and requiring certain tax levies and disbursement thereof; providing for retirement of the bonded indebtedness of Washburn university of Topeka; providing for the disposition and management of certain endowment property of Washburn university of Topeka; and establishing a board of trustees for the university and prescribing its composition, powers, rights and authority; amending K.S.A. 73-1217, 73-1218, 74-3229, 752576, 75-4101, 75-5501, 76-719 and 79-2961, K.S.A. 1995 Supp. 75-3765, as amended by section 128 of chapter 229 of the 1996 Session Laws of Kansas, and K.S.A. 1996 Supp. 41719, 74-3209, 75-3731, 75-3732, 76-156a, 76-6a01, 76-711, 76-751, 76-754 and 76-756 and repealing the existing sections; also repealing K.S.A. 13-13a03, 13-13a04, 13-13a05, 1313a06, 13-13a08, 13-13a09, 13-13a11, 13-13a13, 13-13a14, 13-13a16, 13-13a17, 13-13a18, 13-13a19, 13-13a20, 13-13a20a, 13-13a21, 13-13a23, 13-13a24, 13-13a25, 13-13a26, 1313a27, 13-13a28, 13-13a29, 13-13a30, 13-13a31, 13-13a32, 13-13a33, 13-13a34, 13-13a35, 13-13a36, 13-13a37, 72-6501, 72-6502, 72-6503, 72-6504, 72-6505, 72-6506, 72-6507, 726508 and 72-6509 and K.S.A. 1996 Supp. 13-13a12, by Committee on Appropriations. HB 2494, An act concerning the terms of members of boards of education; relating to the commencement thereof; amending K.S.A. 25-2023 and repealing the existing section, by Committee on Federal and State Affairs. 196 JOURNAL OF THE HOUSE HOUSE CONCURRENT RESOLUTION No. 5018-- By Committee on Federal and State Affairs A proposition to amend article 14 of the constitution of the state of Kansas by adding a new section thereto, relating to amendment of the constitution by propositions initiated by registered voters of the state. 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 amended by adding a new section 3 thereto to read as follows: ``(section) 3. Initiative of voters. Propositions for the amendment of this constitution may be initiated by petition of registered voters of this state and submitted to the registered voters of the state for their approval or rejection as provided by this section. Such propositions may amend one or more sections within a single article of the constitution as may be necessary to accomplish the objective of the amendment. Each proposition must relate to one subject. No amendment to the constitution shall be initiated or adopted pursuant to this section which dedicates any revenue; makes or repeals any appropriation; relates to matters concerning the courts or their jurisdiction or funding; encroaches on any right guaranteed by the bill of rights of this constitution or of the constitution of the United States or is prohibited by the constitution of the United States; amends provisions regarding enactment of laws, initiation of laws by the voters or submission of laws to the voters for approval; amends provisions regarding adoption of state constitutional amendments, initiation of state constitutional amendments by the voters or submission of state constitutional amendments to the voters for approval; or reapportions or amends procedures for reapportionment of legislative, congressional, judicial or state board of education districts. ``Prior to being circulated for signatures, a petition initiating a proposition to amend the constitution shall be submitted to the office of the attorney general for determinations as to proper form, legality and constitutionality of the proposed amendment. Such determinations shall be rendered in writing within 21 days after submission of the petition. Any person aggrieved by the determinations of the attorney general may file, within 10 days after the rendering of the determinations, a proceeding in quo warranto with the supreme court. ``Each separately circulated portion of the petition shall contain or have attached thereto the full text of the proposed amendment to the constitution. The petition shall be signed by registered voters of the state equal in number to not less than 8% of the total number of registered voters of the state on the date of the last statewide general election. Not less than 80% of the valid signatures on the petition shall be equally apportioned among residents of each of the senatorial districts of the state and the petition shall contain valid signatures of not less than 1% of the registered voters of each county of the state on the date of the last statewide general election. Petitioners shall file the signed petition in the office of the secretary of state not more than 180 days after final determinations as to proper form, legality and constitutionality of the petition. The filing shall be made at one time all in one group. Later or successive filings shall be deemed to be separate petitions and not a part of any other filing. The secretary of state shall have 60 days to determine if the petition contains the requisite number of valid signatures. ``Within one business day after a petition is filed with the secretary of state, the secretary of state shall notify the attorney general of the filing of such petition. The attorney general shall determine whether the amendment proposed by the petition conflicts with any amendment proposed by an earlier filed petition for submission to the voters at the same election. If the attorney general determines that there is a conflict, the petition shall be invalid. Such determination shall be rendered in writing February 20, 1997 197 within 20 days after the filing of the petition. Any person aggrieved by the determination of the attorney general may file, within 10 days after the rendering of the determination, a proceeding in quo warranto with the supreme court. The supreme court shall render a decision in the case not later than 30 days after the proceeding is filed. ``If a petition is not invalid due to a conflict with an amendment proposed by an earlier filed petition and the secretary of state determines that the petition contains the requisite number of valid signatures, the secretary of state shall cause the proposed amendment to be submitted to the registered voters of the state at the next statewide general election held not less than 180 days after the petition is filed, except that not more than three proposed amendments shall be submitted under the authority of this section at any one election. If more than three valid petitions are filed within the time prescribed by this section, the amendments proposed by the first three valid petitions filed in the office of the secretary of state shall be submitted at the election and the remaining petitions shall be deemed null and void. Publication and submission of the proposed amendment shall be in the manner provided by law for other propositions to amend the constitution and the proposed amendment shall be submitted by the amendment as a whole. ``If two-thirds or more of the registered voters voting on the proposed amendment vote for such, the amendment secretary of state shall file the proposed amendment with the clerk of the house of representatives on or before the next December 31 following the election. Upon the commencement of the first regular legislative session following the election, the speaker of the house of representatives and the president of the senate shall promptly cause the proposed amendment to be submitted by resolution to the respective houses of the legislature for its approval. Such resolution shall be referred to committee, receive a hearing, and be reported either favorably, without amendment, or unfavorably and shall be voted on by the respective house. If a majority of all the members elected (or appointed) and qualified of each house shall approve such resolution, the amendment shall become a part of the constitution. If more than one-third of the registered voters voting on the proposed amendment vote against the amendment, the proposed amendment shall not again be submitted to the registered voters of the state within four years following the date of rejection. ``The provisions of this section shall be self-executing, but legislation may be enacted to facilitate its implementation. The legislature shall provide for reporting of expenditures and contributions made to support or oppose proposed amendments submitted to the registered voters pursuant to this section.'' Sec. 2. The following statement shall be printed on the ballot with the amendment as a whole: ``Explanatory statement. The purpose of this amendment is to authorize proposals for amendment of this constitution to be originated by petition of registered voters of the state. ``A vote for this amendment favors permitting the origination of constitutional amendments by petition of registered voters. ``A vote against this amendment favors the present system of permitting origination of constitutional amendments only by the legislature through concurrent resolution or constitutional convention.'' 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 a special election, which is hereby called for that purpose, to be held at the time of the general election in November, 1998, pursuant to section 1 of article 14 of the constitution of the state of Kansas. On motion of Rep. Jennison, the House recessed until 6:00 p.m. ~ February 20, 1997 198 JOURNAL OF THE HOUSE Evening Session The House met pursuant to recess with Speaker Shallenburger in the chair. On motion of Rep. Jennison, the House went into Committee of the Whole, with Rep. O'Neal in the chair. COMMITTEE OF THE WHOLE On motion of Rep. O'Neal, Committee of the Whole report, as follows, was adopted: Recommended that discussion resume on HB 2031 (see Committee of the Whole, Morn ing Session). On motion of Rep. Lane to amend HB 2031, the motion did not prevail. Also, on motion of Rep. Empson to amend HB 2031, Rep. Phill Kline requested a ruling on the amendment being germane to the bill. The Rules Chair ruled the amendment not germane. Rep. Empson challenged the ruling, the question being ``Shall the Rules Chair be sustained?'' Roll call was demanded. On roll call, the vote was: Yeas 61; Nays 61; Present but not voting 0; Absent or not voting 2. Yeas: Allen, Aurand, Ballou, Boston, Bradley, Campbell, Carmody, Compton, Dahl, Donovan, Dreher, Faber, Farmer, Flower, Franklin, Freeborn, Geringer, Gilmore, Hayzlett, Holmes, Horst, Howell, Humerickhouse, Hutchins, Jennison, Johnson, Kejr, Phill Kline, Landwehr, Lloyd, J. Long, P. Long, Mason, Mayans, Mays, McCreary, Mollenkamp, Morrison, Myers, Neufeld, O'Connor, O'Neal, Packer, Palmer, J. Peterson, Pottorff, Powell, Powers, Presta, Schwartz, Shallen burger, Shore, Shultz, Swenson, Tanner, Toplikar, Vickrey, Vining, Wagle, Weber, Wilson. Nays: Adkins, Alldritt, Ballard, Beggs, Benlon, Burroughs, Correll, Cox, Crow, Dillon, Empson, Feuerborn, Findley, Flaharty, Flora, Garner, Gilbert, Glasscock, Grant, Haley, Helgerson, Henderson, Henry, Huff, Johnston, Kirk, Klein, Phil Kline, Krehbiel, Kuether, Lane, Larkin, McClure, McKechnie, McKinney, Minor, Nichols, Pauls, E. Peterson, Phelps, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Sharp, Showalter, Shriver, Sloan, Spangler, Stone, Storm, Thimesch, To elkes, Tomlinson, Weiland, Wells, Welshimer, Wempe, Wilk. Present but not voting: None. Absent or not voting: Dean, Edmonds. The Rules Chair was not sustained and the question then reverted back to the motion of Rep. Empson. Rep. Phill Kline requested the question be divided. The question was divided. Roll call was demanded on Part A of the motion of Rep. Empson and HB 2031 be amended as amended on general orders conducted on February 20, 1997, by striking all previous amendments to the bill, and as follows: Also on page 1, in line 15, by striking ``Section'' and inserting ``Sec.''; in line 30, by striking ``29'' and inserting ``27''; On roll call, the vote was: Yeas 66; Nays 56; Present but not voting 0; Absent or not voting 2. Yeas: Adkins, Alldritt, Allen, Ballard, Beggs, Benlon, Burroughs, Correll, Cox, Crow, Dillon, Dreher, Empson, Feuerborn, Findley, Flaharty, Flora, Garner, Gil bert, Glasscock, Grant, Haley, Helgerson, Henderson, Henry, Huff, Johnston, Kirk, Klein, Phil Kline, Krehbiel, Kuether, Lane, Larkin, J. Long, McClure, McKechnie, McKinney, Minor, Nichols, Pauls, E. Peterson, Phelps, Pottorff, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Sharp, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Thimesch, Toelkes, Tomlinson, Weiland, Wells, Welshimer, Wempe, Wilk. Nays: Aurand, Ballou, Boston, Bradley, Campbell, Carmody, Compton, Dahl, Donovan, Faber, Farmer, Flower, Franklin, Freeborn, Geringer, Gilmore, Hay zlett, Holmes, Horst, Howell, Humerickhouse, Hutchins, Jennison, Johnson, Kejr, February 20, 1997 199 Phill Kline, Landwehr, Lloyd, P. Long, Mason, Mayans, Mays, McCreary, Mollen kamp, Morrison, Myers, Neufeld, O'Connor, O'Neal, Packer, Palmer, J. Peterson, Powell, Powers, Presta, Schwartz, Shallenburger, Shore, Swenson, Tanner, Topli kar, Vickrey, Vining, Wagle, Weber, Wilson. Present but not voting: None. Absent or not voting: Dean, Edmonds. The motion of Rep. Empson on Part A prevailed. Also, roll call was demanded on Part B and HB 2031 be amended on page 3 by striking all in lines 23 and 24 and by inserting the following: ``New Sec. 8. For all taxable years commencing after December 31, 1996, there shall be allowed as a credit against the tax liability of a taxpayer imposed under the Kansas income tax act, an amount equal to 10% of the property tax actually paid during an income taxable year upon commercial and industrial machinery and equipment classified for property tax ation purposes pursuant to section 1 of article 11 of the Kansas constitution in subclass (5) of (6) of class 2. If the amount of such tax credit exceeds the taxpayer's income tax liability for the taxable year, the amount thereof which exceeds such tax liability shall be refunded to the taxpayer. On roll call, the vote was: Yeas 121; Nays 0; Present but not voting 0; Absent or not voting 3. Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Bradley, Burroughs, Campbell, Carmody, Compton, Correll, Cox, Crow, Dahl, Dil lon, Donovan, Dreher, Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Freeborn, Garner, Geringer, Gilbert, Gilmore, Glasscock, Grant, Haley, Hayzlett, Helgerson, Henderson, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, Johnson, Johnston, Kejr, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, Lloyd, J. Long, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKinney, Mi nor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Packer, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson. Nays: None. Present but not voting: None. Absent or not voting: Dean, Edmonds, Storm. The motion of Rep. Empson prevailed. Also, on Part C of the motion of Rep. Empson HB 2031 be amended Sec. 9. K.S.A. 1996 Supp. 79-32,110 is hereby amended to read as follows: 79-32,110. (a) Resident Individuals. Except as otherwise provided by subsection (a) of K.S.A. 79-3220, and amendments thereto, a tax is hereby imposed upon the Kansas taxable income of every resident individual, which tax shall be computed in accordance with the following tax sched ules: (1) Married individuals filing joint returns. If the taxable income is: . The tax is: Not over $30,000..................... 3.5% of Kansas taxable income Over $30,000 but not over $60,000.... $1,050 plus 6.25% of excess over $30,000 Over $60,000......................... $2,925 plus 6.45% of excess over $60,000 (2) All other individuals. (A) For tax year 1997: If the taxable income is: . The tax is: Not over $20,000..................... ~~4.4%~~ 4.1% of Kansas taxable income Over $20,000 but not over $30,000.... ~~$880~~ $820 plus 7.5% of excess over $20,000 Over $30,000......................... ~~$1,630~~ $1,570 plus 7.75% of excess over $30,000 200 JOURNAL OF THE HOUSE (2) (B) For tax year 1998: If the taxable income is: . The tax is: Not over $15,000..................... 3.5% of Kansas taxable income Over $15,000 but not over $30,000.... $525 plus 6.75% of excess over $15,000 Over $30,000......................... $1,537.50 plus 7.75% of excess over $30,000 (2) (C) For tax year 1999, and all tax years thereafter: If the taxable income is: . The tax is: Not over $15,000..................... 3.5% of Kansas taxable income Over $15,000 but not over $30,000.... $525 plus 6.25% of excess over $15,000 Over $30,000......................... $1,462.50 plus 6.45% of excess over $30,000 (b) Nonresident Individuals. A tax is hereby imposed upon the Kansas taxable income of every nonresident individual, which tax shall be an amount equal to the tax computed under subsection (a) as if the nonresident were a resident multiplied by the ratio of modified Kansas source income to Kansas adjusted gross income. (c) Corporations. A tax is hereby imposed upon the Kansas taxable income of every corporation doing business within this state or deriving income from sources within this state. Such tax shall consist of a normal tax and a surtax and shall be computed as follows: (1) The normal tax shall be in an amount equal to 4% of the Kansas taxable income of such corporation; and (2) the surtax shall be in an amount equal to 3.35% of the Kansas taxable income of such corporation in excess of $50,000. (d) Fiduciaries. A tax is hereby imposed upon the Kansas taxable income of estates and trusts at the rates provided in paragraph (2) of subsection (a) hereof. Also, on Part D of the motion of Rep. Empson HB 2031 be amended Sec. 13. K.S.A. 1996 Supp. 79-4502 is hereby amended to read as follows: 79-4502. As used in this act, unless the context clearly indicates otherwise: (a) ``Income'' means the sum of adjusted gross income under the Kansas income tax act, maintenance, support money, cash public assistance and relief (not including any refund granted under this act), the gross amount of any pension or annuity (including all monetary retirement benefits from whatever source derived, including but not limited to, railroad retirement benefits, all payments received under the federal social security act and veterans disability pensions), all dividends and interest from whatever source derived not included in adjusted gross income, workers compensation and the gross amount of ``loss of time'' insurance. It does not include gifts from nongovernmental sources or surplus food or other relief in kind supplied by a governmental agency, nor shall net operating losses and net capital losses be considered in the determination of income. (b) ``Household'' means a claimant, a claimant and spouse who occupy the homestead or a claimant and one or more individuals not related as husband and wife who together ~~own or rent and~~ occupy a homestead. (c) ``Household income'' means all income received by all persons of a household in a calendar year while members of such household. (d) ``Homestead'' means the dwelling, or any part thereof, whether owned or rented, which is occupied as a residence by the household and so much of the land surrounding it, as defined as a home site for ad valorem tax purposes, and may consist of a part of a multidwelling or multi-purpose building and a part of the land upon which it is built or a man ufactured home or mobile home and the land upon which it is situated. ``Owned'' includes a vendee in possession under a land contract, a life tenant, a beneficiary under a trust and one or more joint tenants or tenants in common. (e) ``Claimant'' means a person who has filed a claim under the provisions of this act and was, during the entire calendar year preceding the year in which such claim was filed for refund under this act, except as provided in K.S.A. 79-4503, and amendments thereto, both domiciled in this state and was: (1) A person having a disability; (2) a person who is 55 years of age or older or (3) a person other than a person included under (1) or (2) having one or more dependent children under 18 years of age residing at the person's homestead during the calendar year immediately preceding the year in which a claim is filed under this act. February 20, 1997 201 When a homestead is occupied by two or more individuals and more than one of the individuals is able to qualify as a claimant, the individuals may determine between them as to whom the claimant will be. If they are unable to agree, the matter shall be referred to the secretary of revenue whose decision shall be final. (f) ``Property taxes accrued'' means property taxes, exclusive of special assessments, delinquent interest and charges for service, levied on a claimant's homestead in 1979 or any calendar year thereafter by the state of Kansas and the political and taxing subdivisions of the state. When a homestead is owned by two or more persons or entities as joint tenants or tenants in common and one or more of the persons or entities is not a member of claimant's household, ``property taxes accrued'' is that part of property taxes levied on the homestead that reflects the ownership percentage of the claimant's household. For purposes of this act, property taxes are ``levied'' when the tax roll is delivered to the local treasurer with the treasurer's warrant for collection. When a claimant and household own their home stead part of a calendar year, ``property taxes accrued'' means only taxes levied on the homestead when both owned and occupied as a homestead by the claimant's household at the time of the levy, multiplied by the percentage of 12 months that the property was owned and occupied by the household as its homestead in the year. When a household owns and occupies two or more different homesteads in the same calendar year, property taxes ac crued shall be the sum of the taxes allocable to those several properties while occupied by the household as its homestead during the year. Whenever a homestead is an integral part of a larger unit such as a multi-purpose or multi-dwelling building, property taxes accrued shall be that percentage of the total property taxes accrued as the value of the homestead is of the total value. For the purpose of this act, the word ``unit'' refers to that parcel of property covered by a single tax statement of which the homestead is a part. (g) ``Disability'' means: (1) Inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or has lasted or can be expected to last for a continuous period of not less than 12 months, and an individual shall be determined to be under a disability only if the physical or mental impairment or impairments are of such severity that the individual is not only unable to do the individual's previous work but cannot, considering age, education and work experience, engage in any other kind of substantial gainful work which exists in the national economy, regardless of whether such work exists in the immediate area in which the individual lives or whether a specific job vacancy exists for the individual, or whether the individual would be hired if application was made for work. For purposes of the preceding sentence (with respect to any individual), ``work which exists in the national economy'' means work which exists in significant numbers either in the region where the individual lives or in several regions of the country; for purposes of this subsection, a ``physical or mental impairment'' is an impairment that results from anatomical, physiological or psychological abnormalities which are demonstrable by medically acceptable clinical and laboratory diagnostic tech niques; or (2) blindness and inability by reason of blindness to engage in substantial gainful activity requiring skills or abilities comparable to those of any gainful activity in which the individual has previously engaged with some regularity and over a substantial period of time. (h) ``Blindness'' means central visual acuity of 20/200 or less in the better eye with the use of a correcting lens. An eye which is accompanied by a limitation in the fields of vision such that the widest diameter of the visual field subtends an angle no greater than 20 degrees shall be considered for the purpose of this paragraph as having a central visual acuity of 20/200 or less. (i) ``Rent constituting property taxes accrued'' means 15% of the gross rent actually paid in cash or its equivalent in 1979 or any taxable year thereafter by a claimant and claimant's household solely for the right of occupancy of a Kansas homestead on which ad valorem property taxes were levied in full for that year. When a household occupies two or more different homesteads in the same calendar year, rent constituting property taxes accrued shall be computed by adding the rent constituting property taxes accrued for each property rented by the household while occupied by the household as its homestead during the year. 202 JOURNAL OF THE HOUSE (j) ``Gross rent'' means the rental paid at arm's length solely for the right of occupancy of a homestead or space rental paid to a landlord for the parking of a mobile home, exclusive of charges for any utilities, services, furniture and furnishings or personal property appli ances furnished by the landlord as a part of the rental agreement, whether or not expressly set out in the rental agreement. Whenever the director of taxation finds that the landlord and tenant have not dealt with each other at arms length and that the gross rent charge was excessive, the director may adjust the gross rent to a reasonable amount for the purposes of the claim. Sec. 14. K.S.A. 79-4505 is hereby amended to read as follows: 79-4505. Except as pro vided in K.S.A. 79-4517, and amendments thereto, no claim in respect of property taxes levied in any year shall be paid or allowed unless such claim is actually filed with and in the possession of the department of revenue on or before ~~October~~ April 15 of the year next succeeding the year in which said taxes were levied. Sec. 15. K.S.A. 79-4508 is hereby amended to read as follows: 79-4508. The amount of any claim pursuant to this act shall be computed by deducting the amount computed under column (2) from the amount of claimant's property tax accrued and/or rent consti tuting property tax accrued. (1).. (2) Claimants householdincome.. Deduction from property tax accruedand/or rent constituting At least But not more than property tax accrued $0 $3,000 0 $3,000.0 3,500 1% of income in excess of $3,000 3,500.01 4,000 $ 5 plus 2% of income in excess of $3,500 4,000.01 4,500 $ 15 plus 3% of income in excess of $4,000 4,500.01 7,000 $ 30 plus 4% of income in excess of $4,500 7,000.01 ..................... $130 plus 4 1/2% of income in excess of $7,000 $0 $3,000 $0 3,001 4,000 12% 4,001 25,000 12% plus 4% of every $1,000, or fraction thereof, of income in excess of $4,001 The director of taxation shall prepare a table under which claims under this act shall be determined. The amount of claim for each bracket shall be computed only to the nearest ~~one dollar ($1)~~ $1. The claimant may elect not to record the amount claimed on the claim. The claim allow able to persons making this election shall be computed by the department which shall notify the claimant by mail of the amount of the allowable claim. Also, on Part E of the motion of Rep. Empson HB 2031 be amended New Sec. 10. (a) For all taxable years commencing after December 31, 1996, there shall be allowed as a credit against the tax liability of a resident individual imposed under the Kansas income tax act an amount equal to 50% of the amount of the credit allowed against such taxpayer's federal income tax liability pursuant to section 23 of the federal internal revenue code for the taxable year in which such credit was claimed against the taxpayer's federal income tax liability. (b) The credit allowed by subsection (a) shall not exceed the amount of the tax imposed by K.S.A. 79-32,110, and amendments thereto, reduced by the sum of any other credits allowable pursuant to law. Also, on Part F of the motion of Rep. Empson HB 2031 be amended Sec. 11. K.S.A. 1996 Supp. 79-3603 is hereby amended to read as follows: 79-3603. For the privilege of engaging in the business of selling tangible personal property at retail in this state or rendering or furnishing any of the services taxable under this act, there is hereby levied and there shall be collected and paid a tax at the rate of 4.9%: (a) The gross receipts received from the sale of tangible personal property at retail within this state; (b) (1) the gross receipts from intrastate telephone or telegraph services and (2) the gross receipts received from the sale of interstate telephone or telegraph services, which February 20, 1997 203 (A) originate within this state and terminate outside the state and are billed to a customer's telephone number or account in this state; or (B) originate outside this state and terminate within this state and are billed to a customer's telephone number or account in this state except that the sale of interstate telephone or telegraph service does not include: (A) Any interstate incoming or outgoing wide area telephone service or wide area transmission type service which entitles the subscriber to make or receive an unlimited number of commu nications to or from persons having telephone service in a specified area which is outside the state in which the station provided this service is located; (B) any interstate private communications service to the persons contracting for the receipt of that service that entitles the purchaser to exclusive or priority use of a communications channel or group of channels between exchanges; (C) any value-added nonvoice service in which computer processing applications are used to act on the form, content, code or protocol of the information to be transmitted; (D) any telecommunication service to a provider of telecommunication services which will be used to render telecommunications services, including carrier access services; or (E) any service or transaction defined in this section among entities classified as members of an affiliated group as provided by federal law (U.S.C. Section 1504); (c) the gross receipts from the sale or furnishing of gas, water, electricity and heat, which sale is not otherwise exempt from taxation under the provisions of this act, and whether furnished by municipally or privately owned utilities; (d) the gross receipts from the sale of meals or drinks furnished at any private club, drinking establishment, catered event, restaurant, eating house, dining car, hotel, drugstore or other place where meals or drinks are regularly sold to the public; (e) the gross receipts from the sale of admissions to any place providing amusement, entertainment or recreation services including admissions to state, county, district and local fairs, but such tax shall not be levied and collected upon the gross receipts received from sales of admissions to any cultural and historical event which occurs triennially; (f) the gross receipts from the operation of any coin-operated device dispensing or providing tangible personal property, amusement or other services except laundry services, whether automatic or manually operated; (g) the gross receipts from the service of renting of rooms by hotels, as defined by K.S.A. 36-501 and amendments thereto; (h) the gross receipts from the service of renting or leasing of tangible personal property except such tax shall not apply to the renting or leasing of machinery, equipment or other personal property owned by a city and purchased from the proceeds of industrial revenue bonds issued prior to July 1, 1973, in accordance with the provisions of K.S.A. 12-1740 through 12-1749, and amendments thereto, and any city or lessee renting or leasing such machinery, equipment or other personal property purchased with the proceeds of such bonds who shall have paid a tax under the provisions of this section upon sales made prior to July 1, 1973, shall be entitled to a refund from the sales tax refund fund of all taxes paid thereon; (i) the gross receipts from the rendering of dry cleaning, pressing, dyeing and laundry services except laundry services rendered through a coin-operated device whether automatic or manually operated; (j) the gross receipts from the rendering of the services of washing and washing and waxing of vehicles; (k) the gross receipts from cable, community antennae and other subscriber radio and television services; (l) the gross receipts received from the sales of tangible personal property to all con tractors, subcontractors or repairmen of materials and supplies for use by them in erecting structures for others, or building on, or otherwise improving, altering, or repairing real or personal property of others; (m) the gross receipts received from fees and charges by public and private clubs, drink ing establishments, organizations and businesses for participation in sports, games and other recreational activities, but such tax shall not be levied and collected upon the gross receipts received from: (1) Fees and charges by any political subdivision, or any youth recreation organization exclusively providing services to persons 18 years of age or younger which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal 204 JOURNAL OF THE HOUSE revenue code of 1986, for participation in sports, games and other recreational activities; and (2) entry fees and charges for participation in a special event or tournament sanctioned by a national sporting association to which spectators are charged an admission which is taxable pursuant to subsection (e); (n) the gross receipts received from dues charged by public and private clubs, drinking establishments, organizations and businesses, payment of which entitles a member to the use of facilities for recreation or entertainment; (o) the gross receipts received from the isolated or occasional sale of motor vehicles or trailers but not including: (1) The transfer of motor vehicles or trailers by a person to a corporation solely in exchange for stock securities in such corporation; or (2) the transfer of motor vehicles or trailers by one corporation to another when all of the assets of such corporation are transferred to such other corporation; or (3) the sale of motor vehicles or trailers which are subject to taxation pursuant to the provisions of K.S.A. 79-5101 et seq., and amendments thereto, by an immediate family member to another immediate family member. For the purposes of clause (3), immediate family member means lineal ascendants or descendants, and their spouses. In determining the base for computing the tax on such isolated or occasional sale, the fair market value of any motor vehicle or trailer traded in by the purchaser to the seller may be deducted from the selling price; (p) the gross receipts received for the service of installing or applying tangible personal property which when installed or applied is not being held for sale in the regular course of business, and whether or not such tangible personal property when installed or applied remains tangible personal property or becomes a part of real estate, except that no tax shall be imposed upon the service of installing or applying tangible personal property in connec tion with the ~~original~~ construction, reconstruction, restoration, remodeling, renovation or replacement of a building or facility or the construction, reconstruction, restoration, replace ment or repair of a bridge or highway. For the purposes of this subsection: (1) ``Original construction'' shall mean the first or initial construction of a new building or facility. The term ``original construction'' shall include the addition of an entire room or floor to any existing building or facility, the completion of any unfinished portion of any existing building or facility and the restoration, reconstruction or replacement of a building or facility damaged or destroyed by fire, flood, tornado, lightning, explosion or earthquake, but such term shall not include replacement, remodeling, restoration, renovation or recon struction under any other circumstances; (2)(1) ``Building'' shall mean only those enclosures within which individuals customarily live or are employed, or which are customarily used to house machinery, equipment or other property, and including the land improvements immediately surrounding such building; and ~~(3)~~(2) ``facility'' shall mean a mill, plant, refinery, oil or gas well, water well, feedlot or any conveyance, transmission or distribution line of any cooperative, nonprofit, membership corporation organized under or subject to the provisions of K.S.A. 17-4601 et seq., and amendments thereto, or of any municipal or quasi-municipal corporation, including the land improvements immediately surrounding such facility; (q) the gross receipts received for the service of repairing, servicing, altering or main taining tangible personal property, except computer software described in subsection (s), which when such services are rendered is not being held for sale in the regular course of business, and whether or not any tangible personal property is transferred in connection therewith. The tax imposed by this subsection shall be applicable to the services of repairing, servicing, altering or maintaining an item of tangible personal property which has been and is fastened to, connected with or built into real property; (r) the gross receipts from fees or charges made under service or maintenance agree ment contracts for services, charges for the providing of which are taxable under the pro visions of subsection (p) or (q); (s) the gross receipts received from the sale of computer software, and the sale of the services of modifying, altering, updating or maintaining computer software. As used in this subsection, ``computer software'' means information and directions loaded into a computer which dictate different functions to be performed by the computer. Computer software includes any canned or prewritten program which is held or existing for general or repeated February 20, 1997 205 sale, even if the program was originally developed for a single end user as custom computer software. The sale of computer software or services does not include: (1) The initial sale of any custom computer program which is originally developed for the exclusive use of a single end user; or (2) those services rendered in the modification of computer software when the modification is developed exclusively for a single end user only to the extent of the modi fication and only to the extent that the actual amount charged for the modification is sep arately stated on invoices, statements and other billing documents provided to the end user. The services of modification, alteration, updating and maintenance of computer software shall only include the modification, alteration, updating and maintenance of computer soft ware taxable under this subsection whether or not the services are actually provided; and (t) the gross receipts received for telephone answering services, including mobile phone services, beeper services and other similar services. Also, on Part G of the motion of Rep. Empson HB 2031 be amended New Sec. 12. (a) There shall be allowed as a credit against the tax liability of a resident individual imposed under the Kansas income tax act an amount equal to 10% for tax year 1997 and 15% for all tax years thereafter, of the amount of the earned income credit allowed against such taxpayer's federal income tax liability pursuant to section 32 of the federal internal revenue code for the taxable year in which such credit was claimed against the taxpayer's federal income tax liability. (b) If the amount of the credit allowed by subsection (a) exceeds the taxpayer's income tax liability imposed under the Kansas income tax act, such excess amount shall be refunded to the taxpayer. (c) The provisions of this section shall be applicable to all taxable years commencing after December 31, 1996. Also, on Part H of the motion of Rep. Empson HB 2031 be amended On page 2, following line 2, by inserting a new section as follows: ``Sec. 6. K.S.A. 1996 Supp. 72-6442 is hereby amended to read as follows: 72-6442. (a) In any school year commencing after any school year in which the provisions of K.S.A. 1996 Supp. 72-6442a are operational, if the state board determines that the amount of appropri ations for general state aid, inclusive of the amount determined necessary for effectuation of this section, is sufficient to pay in full the amount each district is entitled to receive for the school year, the provisions of this section shall become operational and The correlation weighting of each district with 1,800 or over enrollment shall be determined by the state board as follows: ~~(1)~~ (a) Determine the schedule amount for a district with 1,800 enrollment as derived from the linear transition under (d) of K.S.A. 72-6412, and amendments thereto, and sub tract the amount determined under (c) of K.S.A. 72-6412, and amendments thereto, from the schedule amount so determined; ~~(2)~~ (b) divide the remainder obtained under ~~(1)~~ (a) by the amount determined under (c) of K.S.A. 72-6412, and amendments thereto, and multiply the quotient by the enrollment of the district in the current school year. The product is the correlation weighting of the district. ~~(b) The provisions of this section shall take effect and be in force from and after July 1, 1995.~~''; On page 3, in line 18, by striking ``72.403%'' and inserting ``70.36%''; Also, on Part I of the motion of Rep. Empson HB 2031 be amended Sec. 2. K.S.A. 1996 Supp. 72-6410 is hereby amended to read as follows: 72-6410. (a) ``State financial aid'' means an amount equal to the product obtained by multiplying base state aid per pupil by the adjusted enrollment of a district. (b) ``Base state aid per pupil'' means an amount of state financial aid per pupil. Subject to the other provisions of this subsection, the amount of base state aid per pupil is ~~$3,648~~ $3,670. The amount of base state aid per pupil is subject to reduction commensurate with any reduction under K.S.A. 1996 Supp. 75-6704, and amendments thereto, in the amount of the appropriation from the state general fund for general state aid. If the amount of appropriations for general state aid is insufficient to pay in full the amount each district is entitled to receive for any school year, the amount of base state aid per pupil for such school year is subject to reduction commensurate with the amount of the insufficiency. 206 JOURNAL OF THE HOUSE (c) ``Local effort'' means the sum of an amount equal to the proceeds from the tax levied under authority of K.S.A. 72-6431, and amendments thereto, and an amount equal to any unexpended and unencumbered balance remaining in the general fund of the district, except amounts received by the district and authorized to be expended for the purposes specified in K.S.A. 72-6430, and amendments thereto, and an amount equal to any unexpended and unencumbered balances remaining in the program weighted funds of the district, except any amount in the vocational education fund of the district if the district is operating an area vocational school, and an amount equal to any remaining proceeds from taxes levied under authority of K.S.A. 72-7056 and 72-7072, and amendments thereto, prior to the repeal of such statutory sections, and an amount equal to the amount deposited in the general fund in the current school year from amounts received in such year by the district under the provisions of subsection (a) of K.S.A. 72-1046a, and amendments thereto, and an amount equal to the amount deposited in the general fund in the current school year from amounts received in such year by the district pursuant to contracts made and entered into under authority of K.S.A. 72-6757, and amendments thereto, and an amount equal to the amount credited to the general fund in the current school year from amounts distributed in such year to the district under the provisions of articles 17 and 34 of chapter 12 of Kansas Statutes Annotated and under the provisions of articles 42 and 51 of chapter 79 of Kansas Statutes Annotated, and an amount equal to the federal impact aid of a district. (d) ``Federal impact aid'' means an amount equal to the federally qualified percentage of the amount of moneys a district receives in the current school year under the provisions of title I of public law 874 and congressional appropriations therefor, excluding amounts received for assistance in cases of major disaster and amounts received under the low-rent housing program. The amount of federal impact aid defined herein as an amount equal to the federally qualified percentage of the amount of moneys provided for the district under title I of public law 874 shall be determined by the state board in accordance with terms and conditions imposed under the provisions of the public law and rules and regulations thereunder. Also, on Part J of the motion of Rep. Empson HB 2031 be amended Sec. 4. K.S.A. 72-6414 is hereby amended to read as follows: 72-6414. ~~(a)~~ The at-risk pupil weighting of each district shall be determined by the state board by multiplying the number of at-risk pupils included in enrollment of the district by ~~.05~~ .065. The product is the at-risk pupil weighting of the district. ~~(b) The provisions of this section shall take effect and be in force from and after July 1, 1992.~~''; Also, on Part K of the motion of Rep. Empson HB 2031 be amended ``Section 1. K.S.A. 1996 Supp. 72-6407 is hereby amended to read as follows: 72-6407. (a) ``Pupil'' means any person who is regularly enrolled in a district and attending kinder garten or any of the grades one through 12 maintained by the district or who is regularly enrolled in a district and attending kindergarten or any of the grades one through 12 in another district in accordance with an agreement entered into under authority of K.S.A. 728233, and amendments thereto, or who is regularly enrolled in a district and attending special education services provided for preschool-aged exceptional children by the district. Except as otherwise provided in this subsection, a pupil in attendance full time shall be counted as one pupil. A pupil in attendance part time shall be counted as that proportion of one pupil (to the nearest 1/10) that the pupil's attendance bears to full-time attendance. A pupil attending kindergarten shall be counted as 1/2 pupil. A pupil enrolled in and attending an institution of postsecondary education which is authorized under the laws of this state to award academic degrees shall be counted as one pupil if the pupil's postsecondary education enrollment and attendance together with the pupil's attendance in either of the grades 11 or 12 is at least 5/6 time, otherwise the pupil shall be counted as that proportion of one pupil (to the nearest 1/10) that the total time of the pupil's postsecondary education attendance and attendance in grade 11 or 12, as applicable, bears to full-time attendance. A pupil enrolled in and attending an area vocational school, area vocational-technical school or approved vocational education program shall be counted as one pupil if the pupil's vocational education enrollment and attendance together with the pupil's attendance in any of grades nine through 12 is at least 5/6 time, otherwise the pupil shall be counted as that proportion February 20, 1997 207 of one pupil (to the nearest 1/10) that the total time of the pupil's vocational education attendance and attendance in any of grades nine through 12 bears to full-time attendance. A pupil enrolled in a district and attending special education services, except special edu cation services for preschool-aged exceptional children, provided for by the district shall be counted as one pupil. A pupil enrolled in a district and attending special education services for preschool-aged exceptional children provided for by the district shall be counted as 1/2 pupil. A pupil in the custody of the secretary of social and rehabilitation services and enrolled in unified school district No. 259, Sedgwick county, Kansas, but housed, maintained, and receiving educational services at the Judge James V. Riddel Boys Ranch, shall be counted as two pupils. A pupil residing at the Flint Hills job corps center shall not be counted. A pupil confined in and receiving educational services provided for by a district at a juvenile detention facility shall not be counted. A pupil enrolled in a district but housed, maintained, and receiving educational services at a state institution shall not be counted. (b) ``Preschool-aged exceptional children'' means exceptional children, except gifted children, who have attained the age of three years but are under the age of eligibility for attendance at kindergarten. (c) ``At-risk pupils'' means pupils who are eligible for free meals under the national school lunch act and ~~for whom~~ who are enrolled in a district which maintains an approved at-risk pupil assistance plan. (d) ``Enrollment'' means, for districts scheduling the school days or school hours of the school term on a trimestral or quarterly basis, the number of pupils regularly enrolled in the district on September 20 plus the number of pupils regularly enrolled in the district on February 20 less the number of pupils regularly enrolled on February 20 who were counted in the enrollment of the district on September 20; and for districts not hereinbefore spec ified, the number of pupils regularly enrolled in the district on September 20. Notwithstand ing the foregoing, if enrollment in a district in any school year has decreased from enrollment in the preceding school year, enrollment of the district in the current school year may be computed by adding one-half the number of pupils by which enrollment in the current school year has decreased from enrollment in the preceding school year to enrollment in the current school year, except that such computation shall not be applied to decreases in enrollment in the current school year that are in excess of 4% on the basis of enrollment in the preceding school year. (e) ``Adjusted enrollment'' means enrollment adjusted by adding at-risk pupil weighting, program weighting, low enrollment weighting, if any, correlation weighting, if any, school facilities weighting, if any, and transportation weighting to enrollment. (f) ``At-risk pupil weighting'' means an addend component assigned to enrollment of districts on the basis of enrollment of at-risk pupils. (g) ``Program weighting'' means an addend component assigned to enrollment of dis tricts on the basis of pupil attendance in educational programs which differ in cost from regular educational programs. (h) ``Low enrollment weighting'' means~~, for any school year in which the provisions of K.S.A. 1996 Supp. 72-6442a are operational,~~ an addend component assigned to enrollment of districts having 1,800-1,899 or under enrollment on the basis of costs attributable to maintenance of educational programs by such districts in comparison with costs attributable to maintenance of educational programs by districts having 1,800-1,899 or over enrollment, for the school year in which the provisions of K.S.A. 1996 Supp. 72-6442 become operational and each school year thereafter, an addend component assigned to enrollment of districts having under 1,800 enrollment on the basis of costs attributable to maintenance of educa tional programs by such districts in comparison with costs attributable to maintenance of educational programs by districts having 1,800 or over enrollment. (i) ``School facilities weighting'' means an addend component assigned to enrollment of districts on the basis of costs attributable to commencing operation of new school facilities. School facilities weighting may be assigned to enrollment of a district only if the district has adopted a local option budget and budgeted therein the total amount authorized for the school year. School facilities weighting may be assigned to enrollment of the district only in the school year in which operation of a new school facility is commenced and in the next succeeding school year. 208 JOURNAL OF THE HOUSE (j) ``Transportation weighting'' means an addend component assigned to enrollment of districts on the basis of costs attributable to the provision or furnishing of transportation. (k) ``Correlation weighting'' means~~, for any school year in which the provisions of K.S.A. 1996 Supp. 72-6442a are operational,~~ an addend component assigned to enrollment of districts having 1,800-1,899 or over enrollment on the basis of costs attributable to main tenance of educational programs by such districts as a correlate to low enrollment weighting assigned to enrollment of districts having 1,800-1,899 or under enrollment, for the school year in which the provisions of K.S.A. 1996 Supp. 72-6442 become operational and each school year thereafter, an addend component assigned to enrollment of districts having 1,800 or over enrollment on the basis of costs attributable to maintenance of educational programs by such districts as a correlate to low enrollment weighting assigned to enrollment of districts having under 1,800 enrollment. Sec. 3. K.S.A. 1996 Supp. 72-6412 is hereby amended to read as follows: 72-6412. ~~For the school year in which the provisions of K.S.A. 1996 Supp. 72-6442 become operational and each school year thereafter,~~ The low enrollment weighting of each district with under 1,800 enrollment shall be determined by the state board as follows: (a) Determine the amount of the median budget per pupil for the 1991-92 school year of districts with 75-125 enrollment in such school year; (b) determine the amount of the median budget per pupil for the 1991-92 school year of districts with 200-399 enrollment in such school year; (c) determine the amount of the median budget per pupil for the 1991-92 school year of districts with 1,900 or over enrollment; (d) prescribe a schedule amount for each of the districts by preparing a schedule based upon an accepted mathematical formula and derived from a linear transition between (1) the median budgets per pupil determined under (a) and (b), and (2) the median budgets per pupil determined under (b) and (c). The schedule amount for districts with 0-99 en rollment is an amount equal to the amount of the median budget per pupil determined under (a). The schedule amount for districts with 100-299 enrollment is the amount derived from the linear transition under (1). The schedule amount for districts with 300-1,899 en rollment is the amount derived from the linear transition under (2); (e) for districts with 0-99 enrollment: (1) Subtract the amount determined under (c) from the amount determined under (a); (2) divide the remainder obtained under (1) by the amount determined under (c); (3) multiply the quotient obtained under (2) by the enrollment of the district in the current school year. The product is the low enrollment weighting of the district; (f) for districts with 100-299 enrollment: (1) Subtract the amount determined under (c) from the schedule amount of the district; (2) divide the remainder obtained under (1) by the amount determined under (c); (3) multiply the quotient obtained under (2) by the enrollment of the district in the current school year. The product is the low enrollment weighting of the district; (g) for districts with 300-1,799 enrollment: (1) Subtract the amount determined under (c) from the schedule amount of the district; (2) divide the remainder obtained under (1) by the amount determined under (c); (3) multiply the quotient obtained under (2) by the enrollment of the district in the current school year. The product is the low enrollment weighting of the district. Sec. 16. K.S.A. 72-6414, 79-4505, 79-4508 and 79-4520 and K.S.A. 1996 Supp. 72-6407, 72-6410, 72-6412, 72-6412a, 72-6431, 72-6431a, 72-6442, 72-6442a, 72-8191, 72-8192, 7932,110, 79-3603, 79-4502 and 79-5105 are hereby repealed.''; By renumbering existing sections accordingly; In the title, in line 9, by striking all after ``ACT''; by striking all in lines 10 through 12 and inserting ``enacting the education and tax reform act of 1997; amending K.S.A. 72-6414, 794505, 79-4508 and K.S.A. 1996 Supp. 72-6407, 72-6410, 72-6412, 72-6431, 72-6442, 7932,110, 79-3603, 79-4502 and 79-5105 and repealing the existing sections; also repealing K.S.A. 79-4520 and K.S.A. 1996 Supp. 72-6412a, 72-6431a, 72-6442a, 72-8191 and 728192.'' ~ February 20, 1997 208 JOURNAL OF THE HOUSE Also, on motion of Rep. Mays to amend HB 2031, the motion was withdrawn. Also, roll call was demanded on further motion of Rep. Mays and HB 2031 be amended as amended on motion of Representative Empson, on page 3, before the repealer section, by inserting a new section to read as follows: ``New Sec. 15. (a) For tax year 1997, the following described property, to the extent herein specified, shall be and is hereby exempt from the property tax levied pursuant to the provisions of K.S.A. 1996 Supp. 72-6431, and amendments thereto: Property used as a single family residence, to the extent of $40,000 of its appraised valuation. February 20, 1997 209 (b) During the following fiscal year, the director of the budget, after consultation with the commissioner of education, shall certify to the director of accounts and reports monthly amounts for revenue transfer from the state general fund to the state school district finance fund in an amount not to exceed the following total amount within the specified fiscal year: For the fiscal year beginning on July 1, 1997............. $1,500,887,276; (c) There is hereby created a state school district supplemental aid finance fund within the state treasury. During the following fiscal year, the director of the budget, after con sultation with the commissioner of education, shall certify to the director of accounts and reports monthly amounts for revenue transfer from the state general fund to the state school district supplemental aid finance fund in an amount not to exceed the following total amount within the specified fiscal year: For the fiscal year beginning on July 1, 1997............. $52,089,000; (d) There is hereby created a state school district enhancement fund within the state treasury. During each of the following fiscal years, the director of the budget, after consul tation with the commissioner of education, shall certify to the director of accounts and reports monthly amounts for revenue transfer from the state general fund to the state school district enhancement fund in an amount not to exceed the following total amount within the specified fiscal year: For the fiscal year beginning on July 1, 1997................ $34,900,000''; And by renumbering sections accordingly; On roll call, the vote was: Yeas 64; Nays 58; Present but not voting 0; Absent or not voting 2. Yeas: Aurand, Ballou, Boston, Bradley, Burroughs, Campbell, Carmody, Compton, Dahl, Donovan, Faber, Farmer, Flora, Flower, Franklin, Freeborn, Geringer, Gilmore, Haley, Hayzlett, Holmes, Horst, Howell, Humerickhouse, Hutchins, Jennison, Johnson, Kejr, Phill Kline, Landwehr, Lloyd, P. Long, Mason, Mayans, Mays, McCreary, McKechnie, Mollen kamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Packer, Palmer, J. Peterson, Powell, Powers, Presta, Schwartz, Shallenburger, Sharp, Shore, Shultz, Spangler, Swenson, Tanner, Toplikar, Vickrey, Vining, Wagle, Weber, Wilson. Nays: Adkins, Alldritt, Allen, Ballard, Beggs, Benlon, Correll, Cox, Crow, Dillon, Dreher, Empson, Feuerborn, Findley, Flaharty, Garner, Gilbert, Glasscock, Grant, Helgerson, Hen derson, Henry, Huff, Johnston, Kirk, Klein, Phil Kline, Krehbiel, Kuether, Lane, Larkin, J. Long, McClure, McKinney, Minor, Pauls, E. Peterson, Phelps, Pottorff, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Showalter, Shriver, Sloan, Stone, Storm, Thimesch, Toelkes, Tomlinson, Weiland, Wells, Welshimer, Wempe, Wilk. Present but not voting: None. Absent or not voting: Dean, Edmonds. The motion of Rep. Mays prevailed. Also, on motion of Rep. Franklin HB 2031 be amended on page 3, after line 22, by inserting three new sections to read as follows: ``New Sec. 3. For all purposes associated with property taxation, the provisions of K.S.A. 79-412 notwithstanding, that portion of the fair market value of real property attributable to the leasing of real property, or the creation of any other interest of less than fee simple in real property, for the purpose of the placement of a wireless communications tower, antenna or relay site upon the real property, shall be entered on the assessment roll separate from the remaining fair market value. Such portion of the fair market value shall be sepa rately taxed to the owner of such wireless communications tower, antenna or relay site as real property at the same classification and same tax rate as the real property upon which the wireless communications tower, antenna or relay site is located except that, in the event the real property upon which the wireless communications tower, antenna or relay site is located is exempt from property taxation, such real property shall continue to be exempt from property taxation, except that portion of the fair market value of such tax-exempt real property attributable to the leasing of such tax-exempt real property, or the creation of any other interest of less than fee simple in such tax-exempt real property, for the purpose of the placement of a wireless communications tower, antenna or relay site upon such tax 210 JOURNAL OF THE HOUSE exempt real property, shall be taxable and shall be assessed to the owner of such wireless communications tower, antenna or relay site as real property at 25% of value. Such tax shall be a lien on the interest in the real property of such owner of the wireless communications tower, antenna or relay site and shall be collected in the same manner as the collection of other taxes on real property. New Sec. 4. Any real property, or portion thereof, which is otherwise exempt from property taxation pursuant to the provisions of K.S.A. 79-201, 79-201a, 79-201b, 79-201g and amendments thereto, and which is leased or otherwise used for the location of a wireless communications tower, antenna or relay site, shall be deemed to be used exclusively for the purposes of such sections. New Sec. 5. The provisions of sections 3 and 4 of this act shall be applicable to all taxable years commencing after December 31, 1995.''; Also, on motion of Rep. Nichols HB 2031 be amended on page 3, after line 22, by inserting a new section to read as follows: ``New Sec. 3. (a) Any business firm which employs on a full-time basis a person with a developmental disability or who is seriously and persistently mentally ill and who is engaged for a period of eight months or more in the performance of duties in connection with the operation of such firm, shall be allowed a credit against the tax imposed by the Kansas income tax act, the tax on net income of national banking associations, state banks, trust companies or savings and loan associations imposed under article 11 of chapter 79 of the Kansas Statutes Annotated, or the tax on net income of insurance companies imposed under article 28 of chapter 40 of the Kansas Statutes Annotated. The amount of the credit allowed shall be $500 for each such person employed, except that no more than $50,000 may be claimed for credit in any one taxable year. (b) As used in this section: (1) ``Business firm'' means any business entity authorized to do business in the state of Kansas which is subject to the state income tax imposed by the provisions of the Kansas income tax act, any national banking association, state bank, trust company or savings and loan association paying an annual tax on its net income pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, or any insurance company paying an annual tax on its net income pursuant to article 28 of chapter 40 of the Kansas Statutes Annotated; and (2) ``person with a developmental disability or who is seriously and persistently mentally ill'' means any person who meets the criteria established for mental retardation or devel opmental disability or serious and persistent mental illness by the division of mental health and retardation services of the department of social and rehabilitation services, and who is recommended for employment by a business firm, by a community mental health center or facility for the mentally retarded established pursuant to K.S.A. 19-4001 et seq., or by any entity which any such center or facility has contracted with to provide mental health services or services for the mentally retarded, or both. (c) The provisions of this section shall be applicable to all taxable years commencing after December 31, 1996.''; By renumbering existing sections accordingly; Also, on motion of Rep. Sloan HB 2031 be amended on page 3, after line 22, by inserting a new section to read as follows: ``New Sec. 3. (a) Whenever the appraised valuation of any single-family owner-occu pied residential real property established for property taxation purposes exceeds by 75% or more the appraised valuation of such property for such purposes established for utilization for the next preceding taxable year, and if such increase is not due to such property being improved, a portion of the property tax attributable to such increase shall be refunded to the taxpayer as provided by this section. (b) Any person who qualifies for a refund pursuant to the provisions of subsection (a) and has completed an appeal pursuant to K.S.A. 79-1448, and amendments thereto, from the appraised valuation established for such residential real property may apply for a refund of property tax to the division of taxation of the department of revenue. For the taxable year for which such increase is established, the amount of such refund shall be equal to 80% of the property tax attributable to such increase; for the taxable year next succeeding the taxable year for which such increase is established, the amount of such refund shall be equal to February 20, 1997 211 50% of the property tax attributable to such increase; and for the second taxable year suc ceeding the taxable year for which such increase is established, the amount of such refund shall be equal to 25% of the property tax attributable to such increase. (c) The secretary of revenue shall adopt rules and regulations necessary to effectively implement the provisions of this section, and shall devise forms necessary for the imple mentation of this section. (d) The provisions of this section shall be applicable to all taxable years commencing after December 31, 1996.''; By renumbering the existing sections accordingly; Also, on motion of Rep. Shore HB 2031 be amended as amended on motion of Repre sentative Empson, on page 3, before the repealer section by inserting the following: ``New Sec. 15. (a) On and after January 1, 1998, a tax is hereby imposed on the estate of every resident decedent, and every nonresident decedent who died holding an interest in property with a Kansas tax situs, whose estate is required by federal law to file a return for federal state taxes. The amount of such tax shall be equal to the amount of the maximum credit allowed by section 2011 of the internal revenue code against the tax that would otherwise be imposed on the transfer of the estate of the decedent by section 2001 of the internal revenue code. (b) When the estate of a resident decedent shall consist of property within and without the state, or in the case of the estate of a nonresident decedent who died holding an interest in property with a Kansas tax situs, the tax imposed under subsection (a) shall be the per centage thereof that the gross estate for federal estate tax purposes less the value of all property included therein having a tax situs which is not within the jurisdiction of the state of Kansas, bears to the total gross estate for federal estate tax purposes. Sec. 16. On and after January 1, 1998, K.S.A. 1996 Supp. 79-1541a is hereby amended to read as follows: 79-1541a. Whenever the amount of the tax imposed upon a generationskipping transfer by section 2601 of the internal revenue code is determined, a tax, equal to the maximum amount of the credit allowed against such tax by section 2604 of the internal revenue code, is hereby imposed upon the taxable estate of the decedent as of the date of such determination. ~~The tax imposed under the provisions of this act shall be chargeable against the interests of each beneficiary in proportion to the share received by each bene ficiary under such transfer.~~ Sec. 17. On and after January 1, 1998, K.S.A. 1996 Supp. 79-1541b is hereby amended to read as follows: 79-1541b. When the property transferred subject to the tax imposed by K.S.A. 1996 Supp. 79-1541a shall consist of both property within and property without the state, the tax imposed shall be the percentage that the Kansas assets of the generationskipping trust or generation-skipping trust equivalent bears to the total assets of the gen eration-skipping trust or generation-skipping trust equivalent. Sec. 18. On and after January 1, 1998, K.S.A. 1996 Supp. 79-1542 is hereby amended to read as follows: 79-1542. As used in this act unless the context otherwise requires: (a) Any term used in this act shall have the same meaning as when used in a comparable context in the internal revenue code. Any reference in this act to the ``internal revenue code'' shall mean the provisions of the United States internal revenue code of 1986, as such code exists on December 31, ~~1992~~ 1996. Any reference in this act to a specific provision of the internal revenue code shall be to such provision as it exists on December 31, ~~1992~~ 1996. (b) ``Deemed executor'' includes any person in actual or constructive possession of any property of the decedent. (c) ``Director'' means the director of taxation. (d) ``Distributee'' means a beneficiary, legatee, devisee, heir, next of kin, grantee, donee, vendee, joint tenant or any other successor in interest, whether outright or in trust. (e) ``Distributive share'' or ``distributive shares'' means the share or shares of the dis tributive estate passing to a distributee or distributees. ~~(f)~~ (d) ``Domicile'' refers to that place where a person resides, has an intention to remain and to which they intend to return following any absence. ~~(g)~~ (e) ``Estate'' and ``property'' shall mean the real, personal and mixed property or interest therein of the testator, intestate, grantor, bargainor, vendor or donor which shall 212 JOURNAL OF THE HOUSE pass or be transferred to legatees, devisees, heirs, next of kin, grantees, donees, vendees, or successors and shall include all personal property within or without the state. ~~(h)~~ (f) ``Executor'' and ``administrator'' mean the duly appointed, qualified and acting executor or administrator of the decedent in this state. ~~(i)~~ (g) ``Nonresident decedent'' means a decedent who was not a resident decedent at the time of death. ~~(j)~~ (h) ``Personal representative'' means the executor, administrator or deemed executor of the decedent. ~~(k)~~ (i) ``Resident decedent'' means a decedent who was domiciled in this state at the time of death. ~~(l)~~ (j) ``Secretary'' means the secretary of revenue, or the secretary's designee. ~~(m)~~ (k) ``Tax'' includes tax, penalty and interest, unless the context of a particular section otherwise requires. ~~(n)~~ (l) ``Transfer'' shall include the passing of property or any interest therein in pos session or enjoyment, present or future, by inheritance, descent, devise, succession, bequest, grant, deed, bargain, sale, gift or appointment in the manner herein prescribed. Sec. 19. On and after January 1, 1998, K.S.A. 1996 Supp. 79-1564 is hereby amended to read as follows: 79-1564. (a) Except as hereinafter provided, the executor or administrator of the estate of every decedent whose death gives rise to a tax liability under the provisions of this act, within nine months following the death of the decedent, shall make and The personal representative of every estate subject to the tax imposed by section 1 who is required by federal law to file a return for federal estate taxes shall file in the office of the director a return on forms prepared and furnished by the secretary together with a copy of the federal estate tax return on or before the date the federal estate tax return is required to be filed. (b) In those estates in which no executor or administrator has been appointed, the deemed executor shall make and file such return. In the event there is more than one deemed executor, all deemed executors shall be jointly responsible for completing and filing one return reporting all of the assets of the estate except as hereinafter provided. (c) If, after exercising due diligence, the personal representative making and filing such return is unable to make a complete return as to any part of the gross estate of the decedent, such personal representative shall make and file a return reporting all information as to the estate assets, including a description thereof and the name of any person holding a legal or beneficial interest in the assets to the best of such personal representative's knowledge. ~~(d)~~ (b) The taxes imposed under the provisions of this act shall be paid at the expiration of nine months after the death of the decedent. Such taxes shall be payable from the assets of the estate or proceeds therefrom, in order, so far as practicable, that each distributive share of the estate shall bear a just and equitable proportion of such taxes unless otherwise directed by the will of the decedent or trust agreement by the personal representative to the director not later than the date of the filing of the return. (1) The executor or administrator of the estate of every decedent who is required to file a return shall pay to the director all taxes imposed under this act. In the event the tax imposed against the shares of the decedent's estate exceeds the value of the assets or the proceeds therefrom which were in the custody or control of the executor or administrator, the executor or administrator shall pay the tax imposed to the extent of the value of the amount or the proceeds therefrom within such executor's or administrator's custody or control and the balance of the taxes may be stayed upon application to and approval by the director. Such application shall be made at the time the return is filed upon forms prescribed by the secretary. Upon approval of such application payment of the taxes shall be stayed for a period not to exceed one year and the executor or administrator shall have a right to proceed against the individual distributee or distributees receiving such taxable shares and may perfect a lien therefor under the provisions of K.S.A. 79-1569, and amendments thereto. (2) Except as hereinafter provided, the deemed executor or deemed executors of the estate of every decedent who are required to file a return shall pay to the director all of the taxes imposed by this act. To the extent that all deemed executors do not join in the filing of the return, the deemed executors who jointly file shall pay only that portion of the taxes February 20, 1997 213 representing the aggregate tax liability imposed upon the distributive shares of those so filing. (3) Where an asset not within the custody or control of a personal representative gives rise to a tax liability and such personal representative is required to pay such tax or has voluntarily paid such tax from the assets within such personal representative's custody or control, the personal representative shall have a right to proceed against the individual distributee receiving such share and may perfect a lien therefor under the provisions of K.S.A. 79-1569, and amendments thereto. For the purpose of this paragraph: (1) With respect to the tax liability caused without consideration of K.S.A. 79-1539 or 79-1540, and amendments thereto, the personal representative shall be entitled to recover from the dis tributee the amount by which the total tax liability of the decedent's estate resulting from such assets outside the control of the personal representative and received by the distributee exceeds the total tax liability which would have been payable if the value of such property had not been included in the decedent's gross estate; and (2) with respect to any additional tax liability resulting from the application of K.S.A. 79-1539 or 79-1540, and amendments thereto, the personal representative shall be entitled to recover from the distributee that portion of the total tax liability caused by such application equal to the ratio that the value of such assets outside the control of the personal representative received by the distributee bears to the total value of such assets outside the control of the personal representative. (4) Whenever the personal representative is required to pay the taxes imposed upon an asset not within the personal representative's custody or control and pays the taxes imposed thereon from assets or proceeds therefrom of the estate within the personal representative's custody or control and thereafter fails to collect the taxes attributable to the distributive shares of the decedent's estate which were not within the personal representative's custody or control, the personal representative shall be entitled to a refund of the taxes attributable to such shares which were paid from assets or proceeds therefrom within the personal representative's custody or control upon application to the director. The application for refund shall be filed on forms prescribed by the secretary within the time allowed for refunds pursuant to K.S.A. 79-1574, and amendments thereto. Upon being satisfied that the personal representative has exercised due diligence in attempting to recover the taxes attributable to the distributive shares of the decedent's estate which were not within such personal repre sentative's custody or control, the director shall refund the same. (5) The director shall issue a receipt acknowledging payment of such taxes whenever the taxes as shown to be due on the return or any additional taxes assessed by the director have been paid by a personal representative and (A) such executor or administrator has requested a cash receipt in order to be subrogated to the state's right to proceed in collecting the tax against a distributee; or (B) such executor or administrator has received a stay of payment from the director. Such a receipt shall be issued only under circumstances de scribed in clauses (A) or (B) of this subsection and shall not constitute evidence that a final determination of taxes pursuant to K.S.A. 79-1571, and amendments thereto, has been made. ~~(e)~~ (c) If the taxes contemplated by this act are not paid when due, interest at the rate prescribed by K.S.A. 79-2968(b), and amendments thereto, shall be charged and collected commencing at the time the same become payable. When the filing of the return is delayed beyond nine months after the death of the decedent and the director finds that such delay was due to the inability of the personal representative to determine the distributive shares of an estate or the proper recipients thereof, or to litigation, interest shall commence at the time the return is filed. (f) At the election of the personal representative, the taxes imposed by this act may be determined by the director. Such election shall be made by filing a return disclosing all information necessary for the determination of the taxes imposed by this act. Upon receipt of all necessary information, the director shall determine the taxes due and owing and shall notify the personal representative of the tax liability by registered or certified mail. Not withstanding any election made pursuant to this section, the taxes shall be due and payable at the same time and in the same manner as if the taxes had been determined by the personal representative. If the election pursuant to this subsection is made before the expiration of the nine-month period after the death of the decedent, interest shall be charged and col 214 JOURNAL OF THE HOUSE lected commencing 10 days after notice of the tax liability has been received by the personal representative, or at the expiration of the nine-month period after the decedent's death, whichever is later. If the election pursuant to this subsection is not timely made and the director shall find that the delay was not due to the circumstances set forth in subsection (e), interest shall be charged and collected commencing at the expiration of the nine-month period after the decedent's death. Sec. 20. On and after January 1, 1998, K.S.A. 1996 Supp. 79-1569 is hereby amended to read as follows: 79-1569. (a) ~~Subject to the provisions of subsection (b),~~ Property of which a decedent died seized or possessed, subject to the taxes imposed by this act, in whatever form of investment it may happen to be shall be charged with a lien for all taxes, penalty and interest thereon which are or may become due on such property; but the lien shall not affect any property after it has been sold or disposed of for value by the executors or administrators in accordance with law~~, and no consent to transfer issued by the director shall be required to release such lien~~, but in all such cases a lien shall attach to the proceeds realized from any such sale or other disposition for all taxes and interest thereon which are or may be due on such property. That portion of the decedent's property which is used for the payment of charges against the estate and expenses of its administration, allowed by any court having jurisdiction thereof, shall be divested of such lien. The lien on any property subject to the ~~inheritance tax~~ act by virtue of the provisions of this subsection shall be divested after 10 years from the date of the decedent's death. (b) If the taxes imposed under this act are not paid when due, the spouse, transferee, surviving tenant, person in possession of the property by reason of the exercise, nonexercise, or release of a power of appointment, or beneficiary, who receives, or has on the date of the decedent's death, property included in the gross estate under K.S.A. 79-1548 through 79-1553 and 79-1555 through 79-1557, and amendments thereto, to the extent of the value of such property at the time of the decedent's death shall be personally liable for such tax. Any part of such property transferred by, or transferred by a transferee of, such spouse, transferee, trustee, surviving tenant, person in possession, or beneficiary to a purchaser or holder of a security interest shall be divested of the lien provided for in subsection (a) and a similar lien shall then attach to all the property of such spouse, transferee, trustee, surviving tenant, person in possession, beneficiary or transferee of any such person, except any part transferred to a purchaser or a holder of a security interest. (c) Upon issuance of a receipt for taxes paid pursuant to subsection (d)(5) of K.S.A. 791564 and amendments thereto to a personal representative who has paid the taxes imposed by this act or an approved application for stay filed pursuant to subsection (d)(1) of K.S.A. 79-1564 and amendments thereto, the personal representative shall be subrogated to the right to proceed against any real or personal property in which a distributee has an interest which the state might have had. The issuance of a receipt for taxes paid by the director after payment of the taxes or approved application for stay shall be deemed an assignment by the state to the personal representative of the right to proceed against the real and personal property in which a distributee has an interest and shall be conclusive evidence thereof. A right to proceed shall arise and a lien shall be perfected to aid the personal representative in the right to proceed against property of a distributee only if the personal representative files a notice of lien with the register of deeds. The lien shall be effective only against property of a distributee located in the county where the notice of lien is filed. Such notice of lien may be filed in any county wherein any real or personal property in which the distributee has an interest is located. The notice of lien shall be made on forms prescribed by the secretary. Upon satisfaction of the lien, a release shall be issued by such personal representative on forms prescribed by the secretary. (d) If the personal representative has requested and received a refund of taxes paid pursuant to subsection (d)(4) of K.S.A. 79-1564, and amendments thereto, or whenever the personal representative fails to collect the tax pursuant to subsection (d)(4) of K.S.A. 791564, and amendments thereto, or is not required to pay the tax imposed by this act or the taxes imposed by this act are not paid at the expiration of nine months after the death of the decedent, (b) If the personal representative fails to timely pay the tax imposed by section 1, the director shall enforce the director's lien by the issuance of a warrant under the director's February 20, 1997 215 hand and official seal, directed to the sheriff of any county of the state, commanding such sheriff to levy upon and sell the real and personal property of the ~~distributee~~ estate found within the sheriff's county for the payment of the amount thereof, with the added interest and the cost of executing the warrant, and to return such warrant to the director and pay to the director the money collected by virtue thereof not more than 60 days from the date of the warrant. The sheriff shall within five days after the receipt of the warrant, file with the clerk of the district court of the sheriff's county a copy thereof, and thereupon the clerk shall enter in the appearance docket in appropriate columns, the name of the ~~distributee~~ estate named in the warrant, the amount of the tax or portion thereof and interest for which the warrant is issued and the date such copy is filed. The amount of such warrant so docketed shall thereupon become a lien upon the title to, and interest in, the real property of the ~~distributee~~ estate against whom it is issued in the same manner, as a judgment duly docketed in the office of such clerk. The sheriff shall proceed in the same manner and with like effect as prescribed by law with respect to executions issued against property upon judgments of a court of record, and shall be entitled to the same fees for the sheriff's services to be collected in the same manner. The court in which the warrant is docketed shall have jurisdiction over all subsequent proceedings as fully as though a judgment had been rendered in the court. In the discretion of the director, a warrant of like terms, force and effect may be issued and directed to any officer or employee of the director, and in the execution thereof such officer or employee shall have all the powers conferred by laws upon sheriffs, and the subsequent proceedings thereunder shall be the same as provided where the warrant is issued directly to the sheriff. The ~~distributee~~ estate shall have the right to redeem the real estate within a period of 18 months from the date of such sale. If a warrant be returned, unsatisfied in full, the director shall have the same remedies to enforce the claim for taxes as if the state of Kansas had recovered judgment against the distributee for the amount of the tax. No law exempting any goods and chattels, land and tenements from forced sale under execution shall apply to a levy and sale under any such warrants or upon any execution issued upon any judgment rendered in any action for inheritance taxes. The director shall have the right at any time after the warrant has been returned unsatisfied or satisfied only in part, to issue alias warrants until the full amount of the tax is collected. Sec. 21. On and after January 1, 1998, K.S.A. 1996 Supp. 79-1570 is hereby amended to read as follows: 79-1570. No final account of a personal representative shall be allowed by the district court unless such account shows, and the judge of such court finds, that all taxes imposed by the provisions of this act upon any property or interest therein belonging to the estate to be settled by such account and already payable have been paid, and that all taxes which may become due on such estate have been paid or settled as hereinbefore provided~~, or that the payment thereof to the state is secured by bond~~. Sec. 22. On and after January 1, 1998, K.S.A. 1996 Supp. 79-1571 is hereby amended to read as follows: 79-1571. (a) As soon as practicable after the return is filed and the taxes paid, the director shall issue a closing letter. Such closing letter shall be issued upon the director being satisfied that there has been a final determination of all taxes due and that all such taxes have been paid. The director shall issue such closing letter to the personal representative, and when the estate is involved in probate proceedings before a district court, a copy of such closing letter shall be forwarded to the judge of such court for recording in full in the journal of such court. (b) In the event that all deemed executors do not join in the filing of a return, or in the event the personal representative is unable to make a complete return as to any part of the gross estate of the decedent, upon the director being satisfied that a final determination of the taxes due on that portion of the estate reported has been made and all taxes due thereon have been paid, the director shall issue a closing letter as to that portion of the gross estate which has actually been reported. (c) The closing letter shall be applicable only to assets reported in the return filed with the director. To the extent the gross assets of the decedent were reported, the issuance of a closing letter shall be conclusive evidence that all taxes have been determined and paid and shall release any lien which attached to the decedent's property and that of any deemed executor or distributee unless such lien has been subrogated, assigned and perfected pur 216 JOURNAL OF THE HOUSE suant to K.S.A. 79-1569, and amendments thereto. The closing letter may contain a legal description of the real property so reported. (d) Release of the lien imposed by K.S.A. 79-1569, and amendments thereto, may be provided by filing notice of release in the office of the register of deeds in any county where any such real property included in the gross estate is located or, when the estate is involved in proceedings before the district court, with the court. Any such notice of release shall be in such form as prescribed by the secretary and may include use of or reference to the closing letter issued by the director or may be included as part of that closing letter. Sec. 23. On and after January 1, 1998, K.S.A. 1996 Supp. 79-1572 is hereby amended to read as follows: 79-1572. (a) Assets belonging to the estate of a deceased nonresident, other than intangible assets of a decedent who at the time of death resided in the United States but outside this state, shall not be delivered or transferred to a foreign personal representative of such decedent without serving notice upon the director of taxation of the time and place of such intended delivery or transfer at least seven days before the time of such delivery or transfer. The director or the director's representative may examine such assets prior to the time of such delivery or transfer. Failure to serve such notice or to allow such examination or the making of a delivery or transfer of such assets against the objection of the director shall render the person, association, or corporation making the delivery or transfer liable for the payment of the tax and interest due upon such assets, in an action brought by the department of revenue in the name of the state. (b) A foreign or Kansas person, corporation, partnership or other association of persons may release or transfer intangible assets of a nonresident decedent upon receipt of a sworn affidavit from the personal representative of the decedent's estate, stating that the decedent was not a resident of the state of Kansas at the time of the decedent's death but that such decedent was a resident of another state in the United States. Sec. 24. On and after January 1, 1998, K.S.A. 1996 Supp. 79-1574 is hereby amended to read as follows: 79-1574. (a) Except as otherwise provided in this section, the amount of any tax imposed by this act shall be assessed within three years after the return ~~or affidavit~~ was filed, whether or not such return was filed on or after the date prescribed, or the tax as shown to be due on such return was paid, whichever is the later date, and no proceedings in court for the collection of such taxes shall be begun after the expiration of such period. Where the assessment of any ~~inheritance~~ tax imposed under this act has been made within the period of limitation properly applicable thereto, such tax may be collected by distraint or by a proceeding in court, but only if begun within one year after the period of limitation as provided in this act. The foregoing provisions of this section shall not apply in those cases where the time for the payment of the tax has been extended pursuant to K.S.A. 79-1544 or 79-1567, and amendments thereto. In those cases where the director has retained juris diction over the estate pursuant to K.S.A. 79-1544, and amendments thereto, assessment of taxes or proceedings to collect taxes must be made or commenced within three years after notice of the death of the life tenant. In those cases where a bond has been given guaran teeing the payment of the tax pursuant to K.S.A. 79-1567, and amendments thereto, as sessment of taxes or proceedings for collection of the tax must be made or commenced within three years after the date of the expiration of the last bond so given. (b) For the purposes of this section, a return of tax required under this act filed before the last day prescribed by law shall be deemed to be filed on such last day and any tax shown to be due on such return and paid before the last day prescribed by law shall be deemed to be paid on such last day. (c) In the case of a false or fraudulent return or affidavit with intent to evade tax or in the case of failure to file a return, the tax may be assessed, or a proceeding in court for collection of such tax may be begun at any time. If the personal representative omits from the gross estate items includable in such gross estate as exceed 25% of the gross estate stated in the return or affidavit, the tax may be assessed or a proceeding in court for collection of such tax may be begun at any time within six years after the return or affidavit was filed. In determining the items omitted from the gross estate, there shall not be taken into account any item which is omitted from the gross estate if such item is disclosed in the return or affidavit, or in a statement attached to the return or affidavit, in a manner adequate to apprise the director of the nature and amount of such item. February 20, 1997 217 (d) No refund or credit shall be allowed by the director after three years from the date the return was filed, or one year after an assessment is made, whichever is the later date, unless before the expiration of such period a claim therefor is filed by the personal repre sentative. (e) In case a personal representative has made claim for a refund, such personal rep resentative shall have the right to commence a suit for the recovery of the same at the expiration of six months after the filing of the claim for refund, if no action has been taken by the director. (f) Any personal representative of an estate of a decedent who has been notified of any adjustment by the internal revenue service shall notify the director within 90 days of the date such adjustment is agreed to or becomes final between the estate and the internal revenue service. Such adjustments shall be reported by filing an amended return and a copy of the revenue agent's report detailing such adjustments, along with any other statements or documents as may be necessary to explain and support the adjustments.: (1) Notwithstanding the provisions of subsections (a) or (d), additional tax may be as sessed and proceedings in court for collection of such taxes may be commenced and any refund or credit may be allowed by the director of taxation within 180 days following receipt of any such report of adjustments by the Kansas department of revenue. No assessment shall be made nor shall any refund or credit be allowed under the provisions of this paragraph except to the extent the same is attributable to changes in the estate due to adjustments indicated by such report. (2) In the event of failure to comply with the provisions of this subsection, the statute of limitations shall be tolled. Sec. 25. On and after January 1, 1998, K.S.A. 1996 Supp. 79-1575 is hereby amended to read as follows: 79-1575. As soon as practicable after the return ~~or affidavit~~ is filed, the director shall make an examination thereof and determine the correct amount of the tax liability. If the tax found due is less than the amount paid, the excess paid shall be refunded to the personal representative who paid the tax, except that no refund of an amount of $25 or less shall be made. If the tax found due shall be greater than the amount theretofore paid, or if a claim for a refund is denied, notice shall be mailed to the person filing the return by registered or certified mail. Within 30 days after the mailing of the notice any personal representative aggrieved by any such determination of the director may request a hearing of the director relating to the tax liability by filing a written request with the director. The hearing shall be conducted in accordance with the provisions of the Kansas adminis trative procedure act. An order finding additional tax shall be accompanied by a notice and demand for payment. The tax shall be paid within 30 days thereafter, together with interest on the additional tax from the date the tax was due unless an appeal is taken in the manner provided by K.S.A. 74-2438, and amendments thereto. No additional tax shall be assessed for less than $25. Sec. 26. On and after January 1, 1998, K.S.A. 1996 Supp. 79-1576 is hereby amended to read as follows: 79-1576. Subject to the right of any personal representative to apply for review as provided for in this act, the director shall hear and determine all questions relative to such tax. The attorney for the director, at the request of the director, shall represent the state in any court proceedings brought to review any action of the director. If any district court shall find that any such tax remains due and that proper proceedings have not been taken before the director for abatement thereof, it shall order the personal representative to pay the same, with interest, and costs, and no question regarding the validity of such tax shall be heard in such court. If it appears that there are no goods or assets of the estate in the personal representative's hands, the court may assess the amount of the tax against the personal representative, as if for the personal representative's own debt, and may enforce compliance with such order; but the personal representatives shall be personally liable only for such taxes as shall be payable while they continue in such offices or have custody or control of decedent's property. In the cases where the tax is due and payable by and col lectible from the distributee, all actions shall be prosecuted by the attorney for the director in the name of the state, and such actions may be brought in the same courts as other actions for money. 218 JOURNAL OF THE HOUSE Sec. 27. On and after January 1, 1998, K.S.A. 1996 Supp. 79-1579 is hereby amended to read as follows: 79-1579. A refund clearing fund, designated ~~inheritance~~ estate tax abate ment refund, not to exceed $50,000 shall be set apart and maintained by the director of taxation from ~~inheritance~~ estate tax collections and held by the state treasurer for the prompt payment of all abatements and refunds. If the director of taxation finds that a claim for refund duly filed by a personal representative ~~pursuant to K.S.A. 79-1564(d)(4), 79-1574(d) or 79-1575, and amendments thereto,~~ should be allowed, or if a court upon a final judgment shall find that the ~~inheritance~~ estate tax, penalty or interest paid by a personal representative is in excess of the amount legally due, then the director of taxation shall issue the director's vouchers to the director of accounts and reports for the refund to the personal representative of such tax, penalty or interest together with interest provided for hereinafter. Upon receipt of such voucher properly executed and endorsed, the director of accounts and reports shall issue the director's warrants to the state treasurer for the payment to the personal repre sentative out of the ~~inheritance~~ estate tax abatement refund fund. The director of taxation shall file a duplicate of such voucher and also a statement which shall set forth the reasons why such abatement or refund was allowed. Upon the allowance of an abatement or refund of any tax or interest paid, interest shall be allowed and paid on the amount of such abate ment or refund at the rate of 12% per annum from the date such tax, penalty or interest was paid to the date the refund or abatement of ~~inheritance~~ estate taxes is made. ~~No refunds in an amount of less than $25 shall be made.~~ Sec. 28. On and after January 1, 1998, K.S.A. 1996 Supp. 79-1580 is hereby amended to read as follows: 79-1580. (a) The director of taxation shall fix and charge an amount pursuant to K.S.A. 45-218 and 45-219, and amendments thereto for furnishing certified copies of returns ~~or affidavits~~. (b) All fees collected hereunder shall be remitted to the state treasurer at least monthly. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount thereof in the state treasury and the same shall be credited to the state general fund. Sec. 29. On and after January 1, 1998, K.S.A. 79-1587 is hereby amended to read as follows: 79-1587. (a) All reports and returns required under the provisions of the Kansas ~~inheritance~~ estate tax act shall be preserved for three years and thereafter until the director of taxation orders them to be destroyed. (b) Except in accordance with proper judicial order, or as provided in subsection (c) of this section, subsection (g) of K.S.A. 17-7511, and amendments thereto, or 46-1106, and amendments thereto, it shall be unlawful for the director of taxation, or any deputy, agent, clerk or other officer, employee or former employee of the department of revenue or any other state officer or employee or former state officer or employee to divulge, or to make known in any way, the value of any estate or any particulars set forth or disclosed in any report, return, federal return or federal return information required under the provisions of the Kansas ~~inheritance~~ estate tax act; and it shall be unlawful for the director of taxation, any deputy, agent, clerk or other officer or employee of the department of revenue engaged in the administration of the Kansas ~~inheritance~~ estate tax act to engage in the business or profession of tax accounting or to accept employment, with or without consideration, from any person, firm or corporation for the purpose, directly or indirectly, of preparing tax returns or reports required by the laws of the state of Kansas, by any other state or by the United States government, or to accept any employment for the purpose of advising, pre paring material or data, or the auditing of books or records to be used in an effort to defeat or cancel any tax or part thereof that has been assessed by the state of Kansas, any other state or by the United States government. (c) Nothing herein shall be construed to prohibit the publication of statistics, so clas sified as to prevent the identification of particular reports or returns and the items thereof, or the inspection of returns by the attorney general or other legal representatives of the state. Nothing in this section shall prohibit the post auditor from access to all ~~inheritance~~ estate tax reports or returns in accordance with and subject to the provisions of subsection (g) of K.S.A. 46-1106, and amendments thereto. Nothing in this section shall be construed to prohibit the disclosure of the taxpayer's name, social security number, last known address and total tax liability, including penalty and interest, from ~~inheritance~~ estate tax returns to a debt collection agency contracting with the secretary of revenue pursuant to K.S.A. 75 February 20, 1997 219 5140 to 75-5143, inclusive, and amendments thereto. Any person receiving any information under the provisions of this subsection shall be subject to the confidentiality provisions of subsection (b) ~~of this section~~ and to the penalty provisions of subsection (d) ~~of this section~~. (d) Any violation of subsections (b) or (c) ~~of this section~~ shall be a class B misdemeanor; and if the offender be an officer or employee of the state, such officer or employee shall be dismissed from office. (e) Notwithstanding the provisions of this section, the secretary of revenue may permit the commissioner of internal revenue of the United States, or the proper official of any state imposing an inheritance or estate tax, or the authorized representative of either, to inspect the ~~inheritance~~ estate tax returns made under the provisions of the Kansas ~~inheritance~~ estate tax act and the secretary of revenue may make available or furnish to the taxing officials of any other state or the commissioner of internal revenue of the United States or other taxing officials of the federal government, or their authorized representatives, information con tained in inheritance tax reports or returns or any audit thereof or the report of any inves tigation made with respect thereto, filed pursuant to the Kansas ~~inheritance~~ estate tax act, as the secretary may consider proper, but such information shall not be used for any other purpose than that of the administration of tax laws of such state, the state of Kansas or of the United States. (f) Notwithstanding the provisions of this section, the ~~inheritance~~ estate tax return filed with respect to the estate of a decedent shall, upon written request, be open to inspection by or disclosure to: (1) The administrator, executor or trustee of such decedent's estate,; and (2) any heir at law, next of kin or beneficiary under the will of such decedent or a donee or distributee of the decedent's property, but only if the secretary of revenue finds that such heir at law, next of kin, beneficiary, donee or distributee has a material interest which will be affected by information contained therein. New Sec. 30. On and after January 1, 1998, this act and the provisions of article 15 of chapter 79 of the Kansas Statutes Annotated not repealed by this act shall be known and may be cited as the Kansas estate tax act. New Sec. 31. On and after January 1, 1998, the provisions of this act shall be applicable to the estates of all decedents dying after December 31, 1996. The provisions of article 15 of chapter 79 of the Kansas Statutes Annotated in effect immediately before the effective date of this act shall be applicable to the estates of all decedents dying before January 1, 1997. Sec. 32. On and after January 1, 1998, K.S.A. 79-1538, 79-1548, 79-1554, 79-1557, 791566, 79-1584, 79-1584a, 79-1584b, 79-1584c, 79-1585, 79-1586 and 79-1587 and K.S.A. 1996 Supp. 79-1537, 79-1537b, 79-1537c, 79-1537e, 79-1537f, 79-1538a, 79-1539, 79-1540, 79-1541, 79-1541a, 79-1541b, 79-1542, 79-1542a, 79-1543, 79-1545, 79-1547, 79-1549, 791550, 79-1551, 79-1552, 79-1553, 79-1555, 79-1556, 79-1557a, 79-1559, 79-1560, 79-1561, 79-1562, 79-1563, 79-1563a, 79-1564, 79-1565, 79-1567, 79-1567a, 79-1568, 79-1569, 79-1570, 79-1571, 79-1572, 79-1573, 79-1574, 79-1575, 79-1576, 79-1579 and 79-1580 are hereby repealed.''; And by renumbering sections accordingly; On page 22 of the Empson amendment, in line 7, after the comma, by inserting ``791587,''; in line 9, before ``79-32,110'' by inserting ``79-1541a, 79-1541b, 79-1542, 79-1564, 79-1569, 79-1570, 79-1571, 79-1572, 79-1574, 79-1575, 79-1576, 79-1579, 79-1580,''; in line 10, after ``K.S.A.'' by inserting ``79-1538, 79-1548, 79-1554, 79-1557, 79-1566, 79-1584, 791584a, 79-1584b, 79-1584c, 79-1585, 79-1586 and''; in line 11, by striking ``and'' and in serting a comma; in line 12, before the period, by inserting ``79-1537, 79-1537b, 79-1537c, 79-1537e, 79-1537f, 79-1538a, 79-1539, 79-1540, 79-1541, 79-1542a, 79-1543, 79-1545, 79-1547, 79-1549, 79-1550, 79-1551, 79-1552, 79-1553, 79-1555, 79-1556, 79-1557a, 791559, 79-1560, 79-1561, 79-1562, 79-1563, 79-1563a, 79-1565, 79-1567, 79-1567a, 79-1568 and 79-1573.''; and HB 2031 be passed as amended. REPORT ON ENGROSSED BILLS HB 2098, 2269 reported correctly engrosssed February 20, 1997. On motion of Rep. Jennison, the House adjourned until 10:00 a.m., Friday, February 21, 1997. 220 JOURNAL OF THE HOUSE CHARLENE SWANSON, Journal Clerk. JANET E. JONES, Chief Clerk. +--+ | | +--+