J o u r n a l   o f   t h e   H o u s e


                                 THIRTIETH DAY
                                    --------

                                          HALL OF THE HOUSE OF REPRESENTATIVES
                           TOPEKA, KAN., Monday, February 24, 1997, 11:00 a.m.

  The House met pursuant to adjournment with Speaker pro tem Wagle in the
chair.
  The roll was called with 123 members present.
  Rep. Campbell was excused on excused absence by the Speaker.
  Prayer by guest chaplain, the Rev. Todd Weston, First Assembly of God,
Manhattan, and guest of Rep. J. Peterson:
   Our Heavenly Father,
     Our forefathers laid a sure and solid foundation for a great nation. The
   cornerstone for that foundation was faith in God. Other foundation stones
   included reverence for God, respect for law, regard for freedom, and
   responsibility for personal character.
     We confess today, Lord, that as a nation we have fallen short of Your
   glory and righteousness. And yet, we are thankful that you are a God ready
   to pardon, gracious and merciful, slow to anger, and of great kindness.
     I pray for these state representatives that you have appointed and
   ordained for such a time as this. Grant them wisdom and understanding,
   discernment and sound judgment, boldness and courage. May this legislative
   body be characterized by righteousness and justice. May your blessings be
   upon this session.
     In the name of Jesus Christ our Lord and Savior we pray, Amen.

REFERENCE OF BILLS AND CONCURRENT RESOLUTIONS

  The following bills and resolutions were referred to committees as
indicated:
  Appropriations: HB 2495, 2497.
  Business, Commerce and Labor: SB 121.
  Federal and State Affairs: HCR 5019.
  Health and Human Services: SB 60, 111.
  Insurance: SB 93.
  Judiciary: SB 9, 73, 95, 106.
  Taxation: HB 2496; SB 184.
  Transportation: SB 117, 169.

CONSENT CALENDAR

  No objection was made to HB 2026, 2065, 2176; SB 62, 77 appearing on
the Consent Calendar for the third day. The bills were advanced to Final
Action on Bills and Concurrent Resolutions.

FINAL ACTION ON BILLS AND CONCURRENT RESOLUTIONS

  HB 2026, An act concerning the residential landlord and tenant act;
relating to security deposits; amending K.S.A. 58-2550 and repealing the
existing section, was considered on final action.
  On roll call, the vote was: Yeas 123; Nays 0; Present but not voting 0;
Absent or not voting 1.

                               February 24, 1997                            247

  Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon,
Boston, Bradley, Burroughs, Carmody, Compton, Correll, Cox, Crow, Dahl, Dean,
Dillon, 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, McKechnie, 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, Spangler, Stone, Storm, 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: Campbell.
  The bill passed.
  HB 2065, An act concerning election campaign finance; relating to
reports filed by treasurers; amending K.S.A. 25-4148 and repealing the
existing section, was considered on final action.
  On roll call, the vote was: Yeas 123; Nays 0; Present but not voting 0;
Absent or not voting 1.
  Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon,
Boston, Bradley, Burroughs, Carmody, Compton, Correll, Cox, Crow, Dahl, Dean,
Dillon, 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, McKechnie, 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, Spangler, Stone, Storm, 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: Campbell.
  The bill passed.
  HB 2176, An act concerning professional corporations; relating to
participation by social workers; amending K.S.A. 17-2710 and repealing the
existing section, was considered on final action.
  On roll call, the vote was: Yeas 118; Nays 5; Present but not voting 0;
Absent or not voting 1.
  Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Beggs, Benlon, Boston,
Bradley, Burroughs, Compton, Correll, Cox, Crow, Dahl, Dean, Dillon, 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, Lane, Larkin, Lloyd, J.
Long, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKinney,
Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal,
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, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar,
Vickrey, Vining, Wagle, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson.
  Nays: Ballou, Carmody, Landwehr, Packer, Weber.

248                           JOURNAL OF THE HOUSE

  Present but not voting: None.
  Absent or not voting: Campbell.
  The bill passed.
  SB 62, An act concerning veterinary practice; amending K.S.A. 47-816
and 47-826 and repealing the existing sections, was considered on final
action.
  On roll call, the vote was: Yeas 120; Nays 3; Present but not voting 0;
Absent or not voting 1.
  Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon,
Boston, Bradley, Burroughs, Carmody, Compton, Correll, Cox, Crow, Dahl, Dean,
Dillon, 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,
Lane, Larkin, Lloyd, J. Long, P. Long, Mason, Mays, McClure, McCreary,
McKechnie, McKinney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols,
O'Connor, O'Neal, Packer, Palmer, Pauls, E. Peterson, J. Peterson, Phelps,
Powell, Powers, Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer,
Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan,
Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson,
Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe,
Wilk, Wilson.
  Nays: Landwehr, Mayans, Pottorff.
  Present but not voting: None.
  Absent or not voting: Campbell.
  The bill passed.
  SB 77, An act concerning the dispensing and administering of drugs;
amending K.S.A. 65-1635 and repealing the existing section, was considered on
final action.
  On roll call, the vote was: Yeas 123; Nays 0; Present but not voting 0;
Absent or not voting 1.
  Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon,
Boston, Bradley, Burroughs, Carmody, Compton, Correll, Cox, Crow, Dahl, Dean,
Dillon, 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, McKechnie, 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, Spangler, Stone, Storm, 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: Campbell.
  The bill passed.
  HB 2108, An act concerning the Kansas commission on veterans affairs;
relating to Persian Gulf War syndrome; establishing an advisory board;
prescribing powers, duties, functions and guidelines for the commission and
advisory board; providing for confidentiality of certain information and
exceptions thereto; establishing the Persian Gulf War veterans health
initiative fund, was considered on final action.
  On roll call, the vote was: Yeas 123; Nays 0; Present but not voting 0;
Absent or not voting 1.
  Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon,
Boston, Bradley, Burroughs, Carmody, Compton, Correll, Cox, Crow, Dahl, Dean,
Dillon, 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,

                               February 24, 1997                            249

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, 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, Spangler, Stone, Storm, 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: Campbell.
  The bill passed, as amended.
  HB 2167, An act concerning driver's licenses and nondriver
identification cards; amending K.S.A. 1996 Supp. 8-260 and 8-1327 and
repealing the existing sections, was considered on final action.
  On roll call, the vote was: Yeas 118; Nays 5; Present but not voting 0;
Absent or not voting 1.
  Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon,
Boston, Bradley, Burroughs, Carmody, Compton, Correll, Cox, Crow, Dahl, Dean,
Dillon, Donovan, Dreher, Edmonds, Empson, Faber, Farmer, Feuerborn, Findley,
Flaharty, Flower, Franklin, Freeborn, Garner, Geringer, Gilbert, Gilmore,
Glasscock, Grant, Haley, Hayzlett, Helgerson, Henderson, Henry, Holmes,
Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, Johnson, Kejr, Kirk,
Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, Lloyd, J.
Long, P. Long, Mason, Mays, McClure, McCreary, McKechnie, 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, Schwartz, Shallenburger,
Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm,
Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining,
Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson.
  Nays: Flora, Johnston, Klein, Mayans, Sawyer.
  Present but not voting: None.
  Absent or not voting: Campbell.
  The bill passed, as amended.
  HB 2182, An act repealing K.S.A. 65-4801, 65-4802, 65-4803, 65-4804,
65-4805, 654806, 65-4807, 65-4808, 65-4809, 65-4811, 65-4815, 65-4816,
65-4817, 65-4818, 65-4819, 65-4820, 65-4821 and 65-4822; relating to the
certificate of need program for health facilities, was considered on final
action.
  On roll call, the vote was: Yeas 120; Nays 3; Present but not voting 0;
Absent or not voting 1.
  Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon,
Boston, Bradley, Burroughs, Carmody, Compton, Correll, Cox, Crow, Dahl, Dean,
Dillon, Donovan, Dreher, Edmonds, Empson, Faber, Farmer, Feuerborn, Findley,
Flaharty, Flora, Flower, Franklin, Freeborn, Geringer, Gilbert, Gilmore,
Glasscock, Grant, Haley, Hayzlett, Helgerson, Henderson, Henry, Holmes,
Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, Johnson, Kejr, Kirk,
Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, 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, 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, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar,
Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk,
Wilson.
  Nays: Garner, Johnston, Klein.
  Present but not voting: None.
  Absent or not voting: Campbell.
  The bill passed.

250                           JOURNAL OF THE HOUSE

  HB 2245, An act concerning agricultural seeds; relating to the
registration of seed cleaners; concerning seed varieties; amending K.S.A.
2-1415, 2-1421 and 2-1421a and repealing the existing sections, was
considered on final action.
  On roll call, the vote was: Yeas 90; Nays 33; Present but not voting 0;
Absent or not voting 1.
  Yeas: Adkins, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston,
Bradley, Burroughs, Carmody, Correll, Cox, Crow, Dahl, Dillon, Donovan,
Dreher, Empson, Faber, Farmer, Findley, Flaharty, Flora, Flower, Freeborn,
Geringer, Gilbert, Gilmore, Hayzlett, Henderson, Henry, Holmes, Horst, Huff,
Hutchins, Jennison, Johnson, Johnston, Kejr, Kirk, Phil Kline, Kuether, Lane,
Lloyd, J. Long, P. Long, Mason, Mayans, Mays, McClure, McCreary, Morrison,
Myers, Nichols, O'Connor, O'Neal, Palmer, Pauls, E. Peterson, J. Peterson,
Phelps, Powell, Ray, Reardon, Ruff, Samuelson, Sawyer, Schwartz,
Shallenburger, Sharp, Showalter, Shriver, Shultz, Sloan, Spangler, Stone,
Storm, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining,
Wagle, Weber, Weiland, Wells, Welshimer.
  Nays: Alldritt, Compton, Dean, Edmonds, Feuerborn, Franklin, Garner,
Glasscock, Grant, Haley, Helgerson, Howell, Humerickhouse, Klein, Phill
Kline, Krehbiel, Landwehr, Larkin, McKechnie, McKinney, Minor, Mollenkamp,
Neufeld, Packer, Pottorff, Powers, Presta, Reinhardt, Shore, Swenson, Wempe,
Wilk, Wilson.
  Present but not voting: None.
  Absent or not voting: Campbell.
  The bill passed, as amended.
  HB 2279, An act concerning livestock; relating to disposition of
pseudorabies virus infected swine; duties of livestock commissioner;
indemnity to owners, was considered on final action.
  On roll call, the vote was: Yeas 113; Nays 10; Present but not voting 0;
Absent or not voting 1.
  Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon,
Boston, Bradley, Carmody, Compton, Correll, Cox, Crow, Dean, Dillon, 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, 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,
Minor, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Pauls, E.
Peterson, J. Peterson, Phelps, Powell, Powers, Ray, Reardon, Reinhardt, Ruff,
Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver,
Shultz, Sloan, Stone, Storm, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar,
Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk,
Wilson.
  Nays: Burroughs, Dahl, Howell, Mollenkamp, Packer, Palmer, Pottorff,
Presta, Spangler, Swenson.
  Present but not voting: None.
  Absent or not voting: Campbell.
  The bill passed.
  On motion of Rep. Jennison, the House went into Committee of the Whole,
with Rep. Spangler in the chair.

COMMITTEE OF THE WHOLE

  On motion of Rep. Spangler, Committee of the Whole report, as follows, was
adopted:
  Recommended that HB 2350 be passed.
  Committee report to HB 2374 be adopted; also, on motion of Rep.
Neufeld to amend the bill, the motion was withdrawn. Also, on further motion
of Rep. Neufeld HB 2374 be amended on page 3, in line 9, after
``$50,000,000'' by inserting: ``and except that of the moneys that would be
otherwise credited to the state gaming revenues fund during the period from
July 1, 1997, through June 30, 2001, the first $5,000,000 received for credit
to the state gaming revenues fund for each fiscal year during such period
shall be credited to the state tourism fund, shall not be credited to the
state gaming revenues fund and shall be

                               February 24, 1997                            251

deemed to be credited to the state gaming revenues fund for any purpose under
any statute during such period''; also in line 9, by striking ``such'' and
inserting ``the state gaming revenues''; in line 12, by striking ``except
that of the amounts credited to the''; by striking all in lines 13 through
15; in line 16, by striking all before the period; and HB 2374 be
passed as amended.
  Committee report to HB 2348 be adopted and the bill be passed as
amended.
  Committee report to HB 2170 be adopted and the bill be passed as
amended.
  Committee report to HB 2010 be adopted and the bill be passed as
amended.
  Committee report to HB 2202 be adopted; also, on motion of Rep.
Benlon to amend, the motion did not prevail and the bill be passed as
amended.
  Committee report to HB 2243 be adopted; also, on motion of Rep.
Adkins be amended on page 2, following line 10, by inserting the following:
  ``Sec. 1.  K.S.A. 1996 Supp. 8-1,142 is hereby amended to read as follows:
8-1,142. (a) As used in this section, ``educational institution'' means:
  (1)  Any state educational institution under the control and supervision of
the state board of regents;
  (2)  any qualified institution as defined in K.S.A. 72-6107, and amendments
thereto;
  (3)  any community college organized and operating under the laws of this
state; and
  (4)  Haskell Indian Nations university.
  (b)  Any owner of one or more passenger vehicles or trucks registered for a
gross weight of not more than 12,000 pounds who is a resident of Kansas, upon
compliance with the provisions of this section, may be issued one educational
institution license plate for each such passenger vehicle or truck. Such
license plates shall be issued for the same period of time as other license
plates upon proper registration and payment of the regular license fee as
provided in K.S.A. 8-143, and amendments thereto, plus the payment of an
additional fee of $5 for each plate, and the presentation of the annual
emblem use authorization statement provided for in subsection (c).
  (c)  Any educational institution may authorize through its officially
recognized alumni association or foundation the use of such institution's
official emblems to be affixed on license plates as provided by this section.
Any royalty payment to such alumni association or foundation derived from
this section, except reasonable administrative costs, shall be used for
recognition of academic achievement or excellence subject to the approval of
the chancellor or president of the educational institution.  Any motor
vehicle owner may annually apply to the alumni association or foundation for
the use of the institution's emblems. Upon annual application and payment to
the alumni association or foundation in an amount of not less than $25 nor
more than $100 as an emblem use royalty payment for each educational
institution license plate to be issued, the alumni association or foundation
shall issue to the motor vehicle owner, without further charge, an emblem use
authorization statement, which shall be presented by the motor vehicle owner
at the time of registration.
  (d)  Each educational institution's alumni association or foundation
shall provide a list of all new approved applicants and total number of
educational license plates to be issued to the director by August 31, 1995,
and by June 30 of each calendar year thereafter. All new educational license
plates shall be issued for the following calendar year following the receipt
of the list of new approved applicants by the director. Any applicant
for an educational institution license plate may make application for such
plates not less than 60 days prior to such person's renewal of registration
date, on a form prescribed and furnished by the director of vehicles, and any
applicant for the educational institution license plates shall provide the
annual emblem use authorization statement provided for in subsection (c).
Application for registration of a passenger vehicle or truck and issuance of
the license plates under this section shall be made by the owner in a manner
prescribed by the director of vehicles upon forms furnished by the
director.
  (e)  No registration or educational institution license plate issued under
this section shall be transferable to any other person.
  (f)  Renewals of registration under this section shall be made annually,
upon payment of the fee prescribed in subsection (b), in the manner
prescribed in subsection (b) of K.S.A. 8-132, and amendments thereto. No
renewal of registration shall be made to any applicant until such applicant
provides the annual emblem use authorization statement provided for

252                           JOURNAL OF THE HOUSE

in subsection (c). If such emblem use authorization statement is not
presented at the time of registration, the applicant shall be required to
comply with K.S.A. 8-143, and amendments thereto, and return the educational
institution license plates to the county treasurer of such person's
residence.
  (g)  The director of vehicles shall not issue any educational institution
license plates for any educational institution, unless such educational
institution's alumni association or foundation guarantees the initial
issuance of at least 500 license plates.
  (h)  Each educational institution's alumni association or foundation shall:
  (1)  Pay the initial cost of silk-screening for such educational license
plates; and
  (2)  provide to all county treasurers a toll-free telephone number where
applicants can call the alumni association or foundation for information
concerning the application process or the status of their license plate
application.
  (i)  Each educational institution's alumni association or foundation, with
the approval of the director of vehicles and subject to the availability of
materials and equipment, shall design a license plate to be issued under the
provisions of this section.'';
  And by renumbering sections accordingly;
  Also on page 2, in line 11, by striking ``is'' and inserting ``and 8-1,142
are'';
  On page 1, in the title, in line 10, following ``guard'' by inserting ``and
educational''; in line 11, following ``8-177a'' by inserting ``and 8-1,142'';
in line 12, by striking ``section'' and inserting ``sections''; and HB
2243 be passed as amended.
  Committee report to HB 2314 be adopted and the bill be passed as
amended.

REPORTS OF STANDING COMMITTEES

  The Committee on Business, Commerce and Labor recommends HB 2217,
2308 be passed and, because the committee is of the opinion that the bill
is of a noncontroversial nature, be placed on the consent calendar.
  The Committee on Business, Commerce and Labor recommends HB
2205 be amended on page 2, in line 21, by striking all after ``fees''; in
line 22, by striking all before the period;
  On page 3, in line 20, by striking ``times'' and inserting ``hours of''; in
line 21, by striking all after the second ``the''; in line 22, by striking
all before the period and inserting ``judicial district in which the case is
heard'' and the bill be passed as amended.
  The Committee on Business, Commerce and Labor recommends HB
2230 be amended on page 1, in line 34, by striking ``statute book'' and
inserting ``Kansas register''; and the bill be passed as amended.
  The Committee on Business, Commerce and Labor recommends HB
2294 be amended as follows:
  On page 1, in line 32, after ``amount'' by inserting ``of garnishment'';
also in line 32, after ``due'' the second time it appears, by inserting ``to
the defendant'' and the bill be passed as amended.
  The Committee on Governmental Organization and Elections recommends
HB 2444 be passed.
  The Committee on Governmental Organization and Elections recommends
HB 2079 be amended on page 1, by striking all in lines 15 through 43;
  On page 2, by striking all in lines 1 through 43;
  On page 3, by striking all in lines 1 through 41 and inserting:
  ``Section 1.  K.S.A. 25-3801 is hereby amended to read as follows: 25-3801.
(a) At each primary election, the members of the party residing in each
precinct in each county of the state shall elect a man of their number as
precinct committeeman and a woman of their number as precinct committeewoman.
No person shall be eligible to be a candidate for or hold the office of
precinct committeeman or precinct committeewoman of a party in any precinct
unless such person actually lives, resides and occupies a place of abode in
such precinct, and is in all other respects a qualified elector and is shown
as a member of such party on the party affiliation list, in the office of the
county election officer. Except as provided in subsection (b), vacancies
occurring in the office of precinct committeeman or committeewoman shall be
promptly filled by appointment by the county chairperson, except that any
vacancy which occurs because the party had no candidate at such primary
election

                               February 24, 1997                            253

shall not be filled until the county central committee has elected or
reelected its chairperson under K.S.A. 25-3802 and amendments thereto.
Not later than three days after appointment of precinct committeemen and
committeewomen, the county chairperson making the appointments shall notify
the county election officer of such appointments. The county election officer
shall make such appointments public immediately upon receipt thereof. As used
in this act, ''primary election`` means the statewide election held in August
of evennumbered years.
  (b)  When a convention is to be held under article 39 of chapter 25
of Kansas Statutes Annotated to fill a vacancy, no appointments shall be made
under subsection (a) after notice calling the convention has been given until
the convention has been held and the person to fill the vacancy has been
elected by the convention.
  Sec. 2.  K.S.A. 25-4158 is hereby amended to read as follows: 25-4158. (a)
The secretary of state shall: (1) Furnish forms prescribed and provided by
the commission for making reports and statements required to be filed in the
office of the secretary of state by the campaign finance act; and
  (2)  make such reports and statements available for public inspection and
copying during regular office hours.
  (b)  The county election officer shall: (1) Furnish forms prescribed and
provided by the commission for making reports and statements required to be
filed in the office of the county election officer by the campaign finance
act; and
  (2)  make such reports and statements available for public inspection and
copying during regular office hours.
  (c)  The commission may investigate, or cause to be investigated, any
matter required to be reported upon by any person under the provisions of the
campaign finance act, or any matter to which the campaign finance act applies
irrespective of whether a complaint has been filed in relation thereto.
  (d) (1)  For the purpose of any investigation or proceeding under this act,
the commission or any officer designated by the commission may, after having
complied with the requirements of part (2) of this subsection, administer
oaths and affirmations, subpoena witnesses, compel their attendance, take
evidence, and require the production of any books, papers, correspondence,
memoranda, agreements, or other documents or records which the commission
deems relevant or material to the inquiry. The commission shall reimburse the
reasonable costs of production of documents subject to subpoena. All
subpoenas issued under this section shall be authorized by the affirmative
vote of not less than 3/4 of the members of the commission.
  (2)  If the commission finds there is reasonable suspicion that a violation
of the act has occurred, the commission shall communicate, by a signed
writing specifically stating such alleged violations, with the persons being
investigated and allow them 30 days to respond. After reviewing the
information from such respondent, and a determination is made that further
investigation is required, the commission may issue a subpoena by a 3/4 vote
of the commission members. Subpoenas duces tecum shall be limited to
items reasonably relevant to such alleged violations.
  (3)  In any case of contumacy by, or refusal to obey a subpoena
issued pursuant to paragraph (2) to any person, the district court of
Shawnee county, upon application by the commission, or any officer designated
by the commission, may issue to that person an order requiring the person to
appear before the commission or any officer designated by the commission,
there to produce documentary evidence if so ordered or to give evidence
touching the matter under investigation or in question. Any failure to obey
the order of the court may be punished by the court as a contempt of court.
  (4)  No person is excused from attending or testifying or from producing
any document or record before the commission, or obedience to the subpoena of
the commission or any officer designated by the commission, or in any
proceeding instituted by the commission, on the ground that the testimony or
evidence (documentary or otherwise) required of the person may tend to
incriminate the person or subject the person to a penalty or forfeiture. No
individual person may be prosecuted or subjected to any penalty
or forfeiture for or on account of any transaction, matter or thing
concerning which such person is compelled, after claiming privilege against
self-incrimination, to testify or produce evidence

254                           JOURNAL OF THE HOUSE

(documentary or otherwise), except that the individual so testifying shall
not be exempt from prosecution and punishment for perjury committed in so
testifying.
  Sec. 3.  K.S.A. 1996 Supp. 46-236 is hereby amended to read as follows:
46-236. No state officer or employee, candidate for state office or state
officer elect shall solicit any economic opportunity, gift, loan, gratuity,
special discount, favor, hospitality, or service from any person known to
have a special interest, under circumstances where such officer, employee,
candidate or state officer elect knows or should know that a major purpose of
the donor in granting the same could be to influence the performance of the
official duties or prospective official duties of such officer, employee,
candidate or state officer elect.
  Except when a particular course of official action is to be followed as a
condition thereon, this section shall not apply to: (1) Any contribution
reported in compliance with the campaign finance act; (2) a commercially
reasonable loan or other commercial transaction in the ordinary course of
business; or (3) any solicitation for the benefit of any charitable
organization which is required to file a registration statement with the
secretary of state pursuant to K.S.A. 17-1740 17-1763, and
amendments thereto, or which is exempted from filing such statement pursuant
to K.S.A. 17-1741 17-1762, and amendments thereto, or for the
benefit of any educational institution or such institution's endowment
association, if such association has qualified as a nonprofit organization
under paragraph (3) of subsection (c) of section 501 of the internal revenue
code of 1986, as amended.
  Sec. 4.  K.S.A. 46-270 is hereby amended to read as follows: 46-270. The
secretary of state shall obtain suitable name tags in two colors, of a size
not smaller than two 2 1/16`` inches by three 3
1/16'' inches, to be fastened on the outside of the wearer's garment with
lettering adequate in size and clarity to be readable at a distance of three
feet by individuals of normal vision, bearing the name of the lobbyist, the
names of the persons compensating or appointing the lobbyist and the year.
The secretary of state shall present to each individual registering under
K.S.A. 46-264 and 46-265, and amendments thereto, one such tag, and
such tag shall be worn by the lobbyist when lobbying in the state capitol
building.
  New Sec. 5.  (a) (1) Except as otherwise provided in this subsection, the
definitions set forth in K.S.A. 25-4143, and amendments thereto, shall be
applicable to the provisions in this section.
  (2)  As used in this section ``regulated entity'' means any person who is
required by law to be licensed by the insurance commissioner, or any person
who engages in a business or profession which is regulated by the insurance
commissioner, or any person employed by a company regulated by the insurance
commissioner.
  (b)  No regulated entity and no person or political committee acting on
behalf of a regulated entity shall make a contribution to or on behalf of a
person holding the office of insurance commissioner to or on behalf of a
candidate for the office of insurance commissioner or to or on behalf of a
candidate committee of any such candidate.
  (c)  No person holding the office of insurance commissioner and no
candidate for the office of insurance commissioner and no candidate committee
of a candidate for the office of insurance commissioner shall knowingly
solicit or accept a contribution from any regulated entity or any person or
political committee acting on behalf of a regulated entity.
  (d)  Any person or entity violating the provisions of this act shall be
punished in the manner and be subject to the penalties prescribed by K.S.A.
25-4181, and amendments thereto.
  Sec. 6.  K.S.A. 25-3801, 25-4158 and 46-270 and K.S.A. 1996 Supp. 46-236
are hereby repealed.'';
  And by renumbering section 5 as section 7;
  In the title, by striking all in lines 9 through 12 and inserting:
  ``AN ACT concerning elections; relating to campaign finance; relating to
political parties; relating to state officers and employees; relating to
lobbyists; amending K.S.A. 25-3801, 254158 and 46-270 and K.S.A. 1996 Supp.
46-236 and repealing the existing sections.''; and the bill be passed as
amended.
  The Committee on Governmental Organization and Elections recommends
HB 2128 be amended on page 1, in line 39, by striking all following
``and''; in line 40, by striking all preceding ``such''; in line 42, by
striking ``and'' and inserting ``or''; in line 43, by striking ``person'' and
inserting ``individual'';

                               February 24, 1997                            255

  On page 2, in line 1, by striking ``person'' and inserting ``individual'';
in line 7, by striking all following ``assist''; in line 8, by striking ``and
approved the same''; in line 9, by striking ``and'' and inserting ``or''; in
line 10, by striking ``person'' and inserting ``individual''; in line 11, by
striking ``person'' and inserting ``individual''; in line 17, by striking all
following ``assist''; in line 18, by striking all preceding ``and''; in line
20, by striking ``and'' and inserting ``or''; in line 21, by striking
``person'' and inserting ``individual''; in line 22, by striking ``person''
and inserting ``individual''; in line 27, by striking ``an incumbent's'' and
inserting ``a candidate's''; following line 33, by inserting the following:
  ``(d)  It shall be a defense to a prosecution or imposition of a civil fine
under this section if the defendant has secured a written certification from
the person responsible for the advertising that such person has included the
information required by this section in such advertisement.'';
  Also on page 2, by striking all of lines 34 through 43;
  On page 3, by striking all in lines 1 through 43;
  On page 4, by striking all in lines 1 through 33;
  And by renumbering sections accordingly;
  Also on page 4, in line 34, by striking ``and K.S.A. 1996 Supp. 25-4152'';
  Also on page 1, in the title, in line 10, by striking ``and K.S.A. 1996
Supp. 25-''; in line 11, by striking ``4152''; and the bill be passed as
amended.
  The Committee on Insurance recommends HB 2082 be amended on
page 4, by striking all after line 31;
  By striking all of pages 5 through 12;
  On page 13, by striking all before line 23 and inserting the following
sections:
  ``Sec. 3.  K.S.A. 40-252 is hereby amended to read as follows: 40-252.
Every insurance company or fraternal benefit society organized under the laws
of this state or doing business in this state shall pay to the commissioner
of insurance fees and taxes specified in the following schedule:
A
Insurance companies organized under
the laws of this state:
1.   Capital stock insurance companies and mutual legal reserve life insurance
     companies:...
Filing application for sale of stock or certificates of indebtedness        $25
Admission fees:
Examination of charter and other documents......................       500
Filing annual statement.........................................       100
Certificate of authority........................................        10
Annual fees:
Filing annual statement.........................................       100
Continuation of certificate of authority........................        10
2.  Mutual life, accident and health associations:
Admission fees:
Examination of charter and other documents......................      $500
Filing annual statement.........................................       100
Certificate of authority........................................        10
Annual fees:
Filing annual statement.........................................       100
Continuation of certificate of authority........................        10
Examination of charter and other documents......................      $500
Filing annual statement.........................................       100
Certificate of authority........................................        10

256                           JOURNAL OF THE HOUSE

Annual fees:
Filing annual statement.........................................       100
Continuation of certificate of authority........................        10
  In addition to the above fees and as a condition precedent to the
continuation of the certificate of authority provided in this code, all such
companies shall pay a fee of $2 for each agent certified by the company and
shall also pay a tax annually upon all premiums received on risk located in
this state at the rate of 1% per annum less (1) for tax years prior to 1984,
any taxes paid on business in this state pursuant to the provisions of K.S.A.
401701 to 40-1707, inclusive, and 75-1508 and amendments thereto and (2) for
tax years 1984 and thereafter, any taxes paid on business in this state
pursuant to the provisions of K.S.A. 75-1508 and amendments thereto and the
amount of the firefighters relief tax credit determined by the commissioner
of insurance. The amount of the firefighters relief tax credit for a company
for the current tax year shall be determined by the commissioner of insurance
by dividing (A) the total amount of credits against the 1% tax imposed by
this section subsection for taxes paid by all such companies on
business in this state under K.S.A. 40-1701 to 40-1707, inclusive, and
amendments thereto for tax year 1983, by (B) the total amount of taxes paid
by all such companies on business in this state under K.S.A. 40-1703 and
amendments thereto for the tax year immediately preceding the current tax
year, and by multiplying the result so obtained by (C) the amount of taxes
paid by the company on business in this state under K.S.A. 40-1703 and
amendments thereto for the current tax year.
  Funds accepted prior to January 1, 1997, by a life insurer under an
agreement which provides for an accumulation of funds to purchase taxable
annuities at later dates shall be taxable premiums either when received or
when actually applied to the purchase of annuities, at the option of the
insurer. If the funds are declared upon receipt, any interest or other gain
that accrues thereon shall not be taxable as premium income, but if the funds
are declared when applied to the purchase of annuities, the premium tax shall
be paid on the entire amount so applied. Any such funds declared upon receipt
which are thereafter withdrawn before application to the purchase of
annuities may be deducted from tax base as ``premiums'' returned on account
of cancellations.
  In the computation of the gross premiums all such companies shall be
entitled to deduct any premiums returned on account of cancellations, all
premiums received for reinsurance from any other company authorized to do
business in this state, dividends returned to policyholders and premiums
received in connection with the funding of a pension, deferred compensation,
annuity or profit-sharing plan qualified or exempt under sections 401, 403,
404, 408, 457 or 501 of the United States internal revenue code of 1986.
Should any such company remove or maintain, or both, either their home,
principal or executive office or offices from this state, every such company
shall be subject to the provisions of subsection D of this section.
B
Fraternal benefit societies organized
under the laws of this state:
Admission fees:
Examination of charter and other documents......................      $500
Filing annual statement.........................................       100
Certificate of authority........................................        10
Annual fees:
Filing annual statement.........................................       100
Continuation of certificate of authority........................        10
C
Mutual nonprofit hospital service corporations, nonprofit medical service
corporations, nonprofit dental service corporations, nonprofit optometric
service corporations and nonprofit pharmacy service corporations organized
under the laws of this state:
1.   Mutual nonprofit hospital service corporations:                ...

                               February 24, 1997                            257

Admission fees:
Examination of charter and other documents......................      $500
Filing annual statement.........................................       100
Certificate of authority........................................        10
Annual fees:
Filing annual statement.........................................       100
Continuation of certificate of authority........................        10
2.   Nonprofit medical service corporations:                        ...
Admission fees:
Examination of charter and other documents......................      $500
Filing annual statement.........................................       100
Certificate of authority........................................        10
Annual fees:
Filing annual statement.........................................       100
Continuation of certificate of authority........................        10
3.   Nonprofit dental service corporations:                         ...
Admission fees:
Examination of charter and other documents......................      $500
Filing annual statement.........................................       100
Certificate of authority........................................        10
Annual fees:
Filing annual statement.........................................       100
Continuation of certificate of authority........................        10
4.   Nonprofit optometric service corporations:                     ...
Admission fees:
Examination of charter and other documents......................      $500
Filing annual statement.........................................       100
Certificate of authority........................................        10
Annual fees:
Filing annual statement.........................................       100
Continuation of certificate of authority........................        10
5.   Nonprofit pharmacy service corporations:                       ...
Admission fees:
Examination of charter and other documents......................      $500
Filing annual statement.........................................       100
Certificate of authority........................................        10
Annual fees:
Filing annual statement.........................................       100
Continuation of certificate of authority........................        10
  In addition to the above fees and as a condition precedent to the
continuation of the certificate of authority, provided in this code, every
corporation or association shall pay annually to the commissioner of
insurance a privilege fee in an amount equal to 1% per annum of the total of
all premiums, subscription charges, or any other term which may be used to
describe the charges made by such corporation or association to subscribers
for hospital, medical or other health services or indemnity received during
the preceding year. In such computations all such corporations or
associations shall be entitled to deduct any premiums or subscription charges
returned on account of cancellations and dividends returned to members or
subscribers.
D
Insurance companies organized under the
laws of any other state, territory or country:
1.   Capital stock insurance companies and mutual legal reserve life insurance
     companies:...
Filing application for sale of stock or certificates of indebtedness        $25

258                           JOURNAL OF THE HOUSE

Admission fees:
Examination of charter and other documents......................       500
Filing annual statement.........................................       100
Certificate of authority........................................        10
Annual fees:
Filing annual statement.........................................       100
Continuation of certificate of authority........................        10
  In addition to the above fees all such companies shall pay $5 for each
agent certified by the company, except as otherwise provided by law.
  As a condition precedent to the continuation of the certificate of
authority, provided in this code, every company organized under the laws of
any other state of the United States or of any foreign country shall pay a
tax upon all premiums received during the preceding year at the rate of 2%
following rate per annum.:
Tax Year                                .....     Rate                .....
 1997 and before                        .....     2.0%                .....
1998                                    .....     1.9%                .....
1999                                    .....     1.8%                .....
2000                                    .....     1.7%                .....
2001                                    .....     1.6%                .....
2002                                    .....     1.5%                .....
2003                                    .....     1.4%                .....
2004                                    .....     1.3%                .....
2005                                    .....     1.2%                .....
2006                                    .....     1.1%                .....
2007 and thereafter                     .....     1.0%                .....
  Funds accepted prior to January 1, 1997, by a life insurer under an
agreement which provides for an accumulation of funds to purchase taxable
annuities at later dates shall be taxable premiums either when received or
when actually applied to the purchase of annuities, at the option of the
insurer. If the funds are declared upon receipt, any interest or other gain
that accrues thereon shall not be taxable as premium income, but if the funds
are declared when applied to the purchase of annuities, the premium tax shall
be paid on the entire amount so applied. Any such funds declared upon receipt
which are thereafter withdrawn before application to the purchase of
annuities may be deducted from tax base as ``premiums'' returned on account
of cancellations.
  In the computation of the gross premiums all such companies shall be
entitled to deduct any premiums returned on account of cancellations,
dividends returned to policyholders and all premiums received for reinsurance
from any other company authorized to do business in this state and premiums
received in connection with the funding of a pension, deferred compensation,
annuity or profit-sharing plan qualified or exempt under sections 401, 403,
404, 408, 457 or 501 of the United States internal revenue code of 1986.
2.   Mutual life, accident and health associations:                 ...
Admission fees:
Examination of charter and other documents......................      $500
Filing annual statement.........................................       100
Certificate of authority........................................        10
Annual fees:
Filing annual statement.........................................       100
Continuation of certificate of authority........................        10
  In addition to the above fees, every such company organized under the laws
of any other state of the United States shall pay $5 for each agent certified
by the company, and shall pay a tax annually upon all premiums received
during the preceding year at the rate of 2% following rate
per annum.:

                               February 24, 1997                            259

Tax Year                                .....     Rate                .....
1997 and before                         .....     2.0%                .....
1998                                    .....     1.9%                .....
1999                                    .....     1.8%                .....
2000                                    .....     1.7%                .....
2001                                    .....     1.6%                .....
2002                                    .....     1.5%                .....
2003                                    .....     1.4%                .....
2004                                    .....     1.3%                .....
2005                                    .....     1.2%                .....
2006                                    .....     1.1%                .....
2007 and thereafter                     .....     1.0%                .....
  Funds accepted prior to January 1, 1997, by a life insurer under an
agreement which provides for an accumulation of funds to purchase taxable
annuities at later dates shall be taxable premiums either when received or
when actually applied to the purchase of annuities, at the option of the
insurer. If the funds are declared upon receipt, any interest or other gain
that accrues thereon shall not be taxable as premium income, but if the funds
are declared when applied to the purchase of annuities, the premium tax shall
be paid on the entire amount so applied. Any such funds declared upon receipt
which are thereafter withdrawn before application to the purchase of
annuities may be deducted from tax base as ``premiums'' returned on account
of cancellations.
  In the computation of the gross premiums all such companies shall be
entitled to deduct any premiums returned on account of cancellations,
dividends returned to policyholders and all premiums received for reinsurance
from any other company authorized to do business in this state and premiums
received in connection with the funding of a pension, deferred compensation,
annuity or profit-sharing plan qualified or exempt under sections 401, 403,
404, 408, 457 or 501 of the United States internal revenue code of 1986.
3.   Mutual fire, casualty and multiple line insurers and reciprocal or
     interinsurance exchanges:...
Admission fees:
Examination of charter and other documents and issuance of certificate of
     authority.      $500
Filing annual statement.........................................       100
Certificate of authority........................................        10
Annual fees:
Filing annual statement.........................................       100
Continuation of certificate of authority........................        10
  In addition to the above fees, every such company or association organized
under the laws of any other state of the United States shall pay a fee of $5
for each agent certified by the company and shall also pay a tax annually
upon all premiums received during the preceding year at the rate of
2% following rate per annum.:
Tax Year                                .....     Rate                .....
1997 and before                         .....     2.0%                .....
1998                                    .....     1.9%                .....
1999                                    .....     1.8%                .....
2000                                    .....     1.7%                .....
2001                                    .....     1.6%                .....
2002                                    .....     1.5%                .....
2003                                    .....     1.4%                .....
2004                                    .....     1.3%                .....
2005                                    .....     1.2%                .....
2006                                    .....     1.1%                .....
2007 and thereafter                     .....     1.0%                .....

260                           JOURNAL OF THE HOUSE

  For tax years 1998 and thereafter, the annual tax shall be reduced for
the ``applicable percentage'' of (A) any taxes paid on business in this state
pursuant to the provisions of K.S.A. 75-1508 and amendments thereto and (B)
the amount of the firefighters relief tax credit determined by the
commissioner of insurance. The amount of the firefighters relief tax credit
for a company taxable under this subsection for the current tax year shall be
determined by the commissioner of insurance by dividing (A) the total amount
of taxes paid by all such companies on business in this state under K.S.A.
40-1701 to 40-1707 and amendments thereto for tax year 1983 as then in
effect, by (B) the total amount of taxes paid by all such companies on
business in this state under K.S.A. 40-1703 and amendments thereto for the
tax year immediately preceding the current tax year, and by multiplying the
result so obtained by (C) the amount of taxes paid by the company on business
in this state under K.S.A. 40-1703 and amendments thereto for the current tax
year. The ``applicable percentage'' shall be as follows: 
Tax Year                                .....     Applicable Percentage.....
1998                                        .....     10%             .....
1999                                        .....     20%             .....
2000                                        .....     30%             .....
2001                                        .....     40%             .....
2002                                        .....     50%             .....
2003                                        .....     60%             .....
2004                                        .....     70%             .....
2005                                        .....     80%             .....
2006                                        .....     90%             .....
2007 and thereafter                         .....     100%            .....
In the computation of the gross premiums all such companies shall be entitled
to deduct any premiums returned on account of cancellations, all premiums
received for reinsurance from any other company authorized to do business in
this state, and dividends returned to policyholders.
E
Fraternal benefit societies organized under the laws
of any other state, territory or country:
Admission fees:
Examination of charter and other documents......................      $500
Filing annual statement.........................................       100
Certificate of authority........................................        10
Annual fees:
Filing annual statement.........................................       100
Continuation of certificate of authority........................        10
F
Mutual nonprofit hospital service corporations, nonprofit medical service
corporations, nonprofit dental service corporations, nonprofit optometric
service corporations and nonprofit pharmacy service corporations organized
under the laws of any other state, territory or country:
1.   Mutual nonprofit hospital service corporations:                ...
Admission fees:
Examination of charter and other documents......................      $500
Filing annual statement.........................................       100
Certificate of authority........................................        10
Annual fees:
Filing annual statement.........................................       100
Continuation of certificate of authority........................        10

                               February 24, 1997                            261

2.   Nonprofit medical service corporations, nonprofit dental service
     cor-porations, nonprofit optometric service corporations and nonprofit
     pharmacy service corporations:...
Admission fees:
Examination of charter and other documents......................      $500
Filing annual statement.........................................       100
Certificate of authority........................................        10
Annual fees:
Filing annual statement.........................................       100
Continuation of certificate of authority........................        10
  In addition to the above fees and as a condition precedent to the
continuation of the certificate of authority, provided in this code, every
corporation or association shall pay annually to the commissioner of
insurance a privilege fee in an amount equal to 2% per annum of
on the total of all premiums, subscription charges, or any other
term which may be used to describe the charges made by such corporation or
association to subscribers in this state for hospital, medical or other
health services or indemnity received during the preceding year. The rate
of the annual privilege fee under this subsection shall be as follows: 
Tax Year                                .....     Rate                .....
1997 and before                         .....     2.0%                .....
1998                                    .....     1.9%                .....
1999                                    .....     1.8%                .....
2000                                    .....     1.7%                .....
2001                                    .....     1.6%                .....
2002                                    .....     1.5%                .....
2003                                    .....     1.4%                .....
2004                                    .....     1.3%                .....
2005                                    .....     1.2%                .....
2006                                    .....     1.1%                .....
2007 and thereafter                     .....     1.0%                .....
In such computations all such corporations or associations shall be entitled
to deduct any premiums or subscription charges returned on account of
cancellations and dividends returned to members or subscribers.
G
All insurers shall pay a fee of $10 for
issuance of an amended certificate of authority.
  For the purpose of insuring the collection of the tax upon premiums,
assessments and charges as set out in subsection A, C, D or F, every
insurance company, corporation or association shall at the time it files its
annual statement, as required by the provisions of K.S.A. 40-225, and
amendments thereto, make a return, verified by affidavits of its president
and secretary or other chief officers, to the commissioner of insurance,
stating the amount of all premiums, assessments and charges received by the
companies or corporations in this state, whether in cash or notes, during the
year ending on the December 31 next preceding.
  Commencing in 1985 and annually thereafter the estimated taxes shall be
paid as follows:   On or before June 15 and December 15 of such year an
amount equal to 50% of the full amount of the prior year's taxes as reported
by the company shall be remitted to the commissioner of insurance. As used in
this paragraph, ``prior year's taxes'' includes (1) taxes assessed pursuant
to this section for the prior calendar year, (2) fees and taxes assessed
pursuant to K.S.A. 40-253, and amendments thereto, for the prior calendar
year, and (3) taxes paid for maintenance of the department of the state fire
marshal pursuant to K.S.A. 75-1508, and amendments thereto, for the prior
calendar year.
  Upon the receipt of such returns the commissioner of insurance shall verify
the same and assess the taxes upon such companies, corporations or
associations on the basis and at the rate provided herein and the balance of
such taxes shall thereupon become due and payable

262                           JOURNAL OF THE HOUSE

giving credit for amounts paid pursuant to the preceding paragraph, or the
commissioner shall make a refund if the taxes paid in the prior June and
December are in excess of the taxes assessed.
H
  The fee prescribed for the examination of charters and other documents
shall apply to each company's initial application for admission and shall not
be refundable for any reason.
  Sec. 4.  K.S.A. 40-252b is hereby amended to read as follows: 40-252b.
For taxable years commencing on and after January 1, 1998, the fees,
charges and taxes provided for by K.S.A. 40-252 and amendments thereto
shall be in lieu of all other license fees, premium or occupation taxes,
income taxes, intangible property taxes, or other fees levied or assessed
upon the basis of income, premiums, and gross receipts and
intangible property by this state and any municipality, county or other
political subdivision of this state, and no municipality, county or other
political subdivision of this state shall impose any license fee or
privilege, premium, income, intangible property or gross receipts tax
or fee upon any insurance company or corporation taxed under the provisions
of K.S.A. 40-252 and amendments thereto and organized under the laws of
this state or doing business in this state, or upon any of its agents or
representatives for the privilege of doing an insurance business therein:
Provided, however,. This section shall not be
construed to prohibit the levy and collection of (a) state, county or
municipal taxes upon the real and tangible personal property of such company,
(b) tax for the purpose of maintaining the office of the fire marshal of this
state as provided in K.S.A. 75-1508 and amendments thereto, (c) the
firemen's relief fund tax as provided for in K.S.A. 40-1701 through 40-1707
and amendments thereto, and (d) the intangibles tax as
provided for in article 31 of chapter 79 of the Kansas Statutes Annotated,
and any amendments thereto, (e) a tax by the state of Kansas upon the
privilege of doing business within the state measured by the income of the
insurance company, and   (f) municipal occupation taxes levied upon any
basis other than income, intangible property, premiums or gross
receipts.
  New Sec. 5.  (a) For tax years beginning on or after January 1, 1998, each
company required to pay a tax on premiums under subsection A, C, D or F of
K.S.A. 40-252 and amendments thereto shall be allowed as a credit against
such tax 5% of the salaries paid to Kansas employees. Before taking into
account any other credit or offset against the tax on premiums imposed under
K.S.A. 40-252 and amendments thereto, the credit allowed under this section
may not reduce such tax by more than 0.25% of premiums taxable thereunder.
  (b)  As used in this section, unless the context otherwise requires:
  (1)  ``Affiliate'' means an insurance company which, directly or
indirectly, through one or more intermediaries, controls, is controlled by or
is under common control with another insurance company. ``Affiliate'' also
includes any company or business entity other than an insurance company
which, directly or indirectly, through one or more intermediaries, controls,
is controlled by or is under common control with an insurance company and
which performs insurance company operations for an insurance company. For
purposes of this definition, control exists if any company or business
entity, directly or indirectly, owns, holds with the power to vote or holds
proxies representing all the voting stock or other voting securities of any
other company or business entity.
  (2)  ``Insurance company'' or ``company'' means any entity subject to a tax
on premiums under subsection A, C, D or F of K.S.A. 40-252 and amendments
thereto, including the attorney-in-fact authorized by and acting for the
subscribers of a reciprocal insurer or interinsurance exchange under powers
of attorney. For the purposes of this section, a reciprocal and its
attorney-in-fact will be considered a single entity.
  (3)  ``Insurance company operations'' means one or more or any combination
of the following functions or services performed in connection with the
development, sale and administration of products giving rise to receipts
subject to a tax on premiums under subsection A, C, D or F of K.S.A. 40-252
and amendments thereto: actuarial, medical, legal, investments, accounting,
auditing, underwriting, policy issuance, information, policyholder services,
premium collection, claims, advertising and publications, public relations,
human resources, marketing, sales office staff, training of sales and service
personnel, and clerical, managerial and other support for any such functions
or services.

                               February 24, 1997                            263

  (4)  ``Kansas employees'' means persons who reside in Kansas and who are
common law employees of an insurance company or its affiliate. ``Kansas
employees'' does not include independent contractors or any person to the
extent such person's compensation is based on commissions.
  (5)  ``Salaries'' means gross compensation paid to Kansas employees as
reported to the State of Kansas for income tax purposes during the calendar
year for which a tax on premiums is imposed under K.S.A. 40-252 and
amendments thereto, but only to the extent compensation is paid for insurance
company operations performed in Kansas for an insurance company or its
insurance company affiliates subject to the tax on premiums under subsection
A, C, D or F of K.S.A. 40-252 and amendments thereto. ``Salaries'' does not
include compensation based on commissions.
  (c)  For an insurance company having affiliates:
  (1)  Salaries paid by a noninsurance company affiliate shall be allocated
among insurance company affiliates pursuant to the agreement between or among
the insurance company and its affiliates.
  (2)  The gross amount of all premiums of an insurance company subject to
tax under subsection A, C, D or F of K.S.A. 40-252 and amendments thereto and
those of its insurance company affiliates subject to such tax may be
aggregated. In addition, all salaries paid to Kansas employees may be
aggregated. Subject to the limitation on the salary credit set forth in
subsection (a) of this section, the total allowable salary credit may be
determined as if all the aggregated premiums were received and all the
aggregated salaries were paid by one insurance company. Once the total
allowable salary credit is determined for all insurance company affiliates,
the total credit may be allocated among the insurance company and its
insurance company affiliates at the discretion of the insurance company on a
per insurance company basis, subject to the limitation on the salary credit
as set forth in subsection (a) of this section.
  (d)  The computation of salaries, the allowable salary credit and the
allocation of the credit among insurance company affiliates shall be made on
forms supplied by the commissioner of insurance.
  (e)  For purposes of calculating any tax due under K.S.A. 40-253 and
amendments thereto from a taxpayer not organized under the laws of this
state, the credit allowed by this section shall be treated as a tax paid
under K.S.A. 40-252 and amendments thereto.
  New Sec. 6.  For tax years beginning on or after January 1, 1998, a foreign
or domestic insurance company required to pay a tax on premiums under
subsection A, C, D or F of K.S.A. 40-252 and amendments thereto and writing
less than $10,000,000 in premiums in all states shall be allowed as a small
company credit against such tax the amount computed as follows:
  (a)  Subtract the total dollar amount of all premiums written by the
company in all states from $10,000,000;
  (b)  Divide the result obtained in (a) by 10,000,000;
  (c)  Multiply the quotient obtained in (b) by 20,000. Before taking into
account any other credit or offset against the tax on premiums imposed under
K.S.A. 40-252 and amendments thereto, the employment credit allowed under
K.S.A. 40-252d and amendments thereto and the small company credit allowed
under this section, taken together, may not reduce such tax by more that
0.25% of premiums taxable under K.S.A. 40-252 and amendments thereto. For
purposes of calculating any tax due under K.S.A. 40-253 and amendments
thereto from a taxpayer not organized under the laws of this state, the
credit allowed by this section shall be treated as a tax paid under K.S.A.
40-252 and amendments thereto.'';
  And by renumbering sections accordingly;
  On page 14, in line 2, after ``40-252'', by inserting ``, 40-252b''; in
line 4, by striking ``and'' where it appears for the last time, and inserting
a comma; also in line 4, after ``40-2804'' by inserting ``and 40-2813'';
  In the title, in line 15, by striking ``40-252c'' and inserting
``40-252b''; in line 17, after ``K.S.A.'' by inserting ``40-252c,''; in line
19, by striking ``and'' and inserting a comma; also in line 19, before the
period, by inserting ``and 40-2813''; and the bill be passed as amended.

264                           JOURNAL OF THE HOUSE

  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 bill was introduced and read by title:
  HB 2498, An act concerning the state of Kansas sports hall of fame;
providing for separation from the state historical society; amending K.S.A.
74-2906a and K.S.A. 1996 Supp. 74-2912 and repealing the existing sections,
by Committee on Appropriations.

CHANGE OF REFERENCE

  Speaker pro tem Wagle announced the withdrawal of HB 2188 from
Committee on Environment. The bill, which was referred to Committee on
Tourism and Committee on Environment, separately, had been previously
reported out of Committee on Tourism and is now placed on General Orders.

REPORT ON ENGROSSED BILLS

  HB 2108, 2167, 2245 reported correctly engrossed February 21, 1997.
  On motion of Rep. Jennison, the House adjourned until 10:00 a.m., Tuesday,
February 25, 1997.
                                            CHARLENE SWANSON, Journal Clerk.
JANET E. JONES, Chief Clerk.
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