J o u r n a l o f t h e H o u s e THIRTY-SEVENTH DAY -------- HALL OF THE HOUSE OF REPRESENTATIVES TOPEKA, KAN., Thursday, March 6, 1997, 10:30 a.m. The House met pursuant to adjournment with Speaker pro tem Wagle in the chair. The roll was called with 122 members present. Reps. Adkins, Franklin and Schwartz were excused on excused absence by the Speaker. Present later: Rep. Adkins. Prayer by guest chaplain, The Most Reverend James P. Keleher, Metropolitan Archbishop of Kansas City in Kansas, and guest of Rep. Wilk: Almighty, all loving, all provident God we ask a blessing today on this House of Representatives of the great State of Kansas. On this beautiful March day as winter weather fades we praise You for the Spring which will soon be upon us. Do not let this season of renewal pass us by without blessing you for the sun and rain that enrich farm and field. May we feel the warmth of your renewing presence in the vivid verdant vibrancy of Kansas nature. As you govern the seasons and the climates of humankind, so you share with your people the right and duty to create a land of justice and peace in the Nation and State. You encourage the citizens of each sovereign State to choose representatives who will conscientiously enact laws reflecting your desire that freedom be protected, that security be guarded, that commerce go forward, that the common good be sought after, that the more prosperous pay their fair share and that the neediest be cared for--especially as the Holy Bible clearly teaches: the alien, the stranger, the widow and the orphan, indeed the child, the most vulnerable and innocent among us, the child born or unborn, well born or poorly born. As you shared your spirit with the prophet Moses and he with the elders, as you gave your spirit to the Lord and he to his apostles, so in this wonderful land of Kansas you have given your spirit to our people of the Sunflower state and they in turn to their chosen representatives who sit in this great chamber. May that spirit be one of wisdom to guide their proceedings, one of civility to ensure honest dialogue and one of courage to do what is called for without fear or timidity. So be it, so may it be. CORRECTION OF REFERENCE Speaker pro tem Wagle announced HCR 5020 appearing on the Calendar under Reference of Bills and Concurrent Resolutions as being referred to Committee on Federal and State Affairs, should be corrected to be referred to Committee on Governmental Organization and Elections. REFERENCE OF BILLS AND CONCURRENT RESOLUTIONS The following bills and resolutions were referred to committees as indicated: Governmental Organization and Elections: HCR 5020. CHANGE OF REFERENCE Speaker pro tem Wagle announced the withdrawal of HB 2278 from Committee on Federal and State Affairs and rereferral to Committee on Health and Human Services. March 6, 1997 359 Also, the withdrawal of HB 2338 from Committee on Federal State Affairs and rereferral to Committee on Governmental Organization and Elections. COMMUNICATIONS FROM STATE OFFICERS From Robert A. Wesley, Chairman, and Robert G. Lay, Executive Director, Kansas Human Rights Commission, in accordance with K.S.A. 44-1004 (13), Annual Report 1996. From Thelma Hunter Gordon, Secretary, Kansas Department on Aging, Annual Report, January 13, 1997. From the Kansas Supreme Court, pursuant to K.S.A. 8-1008(e), Statement of Alcohol Drug Safety Action Program, 1996 Annual Report. From Charles R. Warren, President, Kansas, Inc., Consolidated Economic Development Budget Overview for Fiscal Year 1998. From E. Dean Carlson, Secretary, Kansas Department of Transportation, Division of Planning and Development, 1996 Selected Statistics. From Kansas Technology Enterprise Corporation, KTEC 1996 Annual Report. From Barbara J. Hinton, Legislative Post Auditor, Performance Audit Report, Reviewing Tax Increment Financing in Kansas, Part I: An Inventory, February 1997. From Carla J. Stovall, Kansas Attorney General, report of Task Force on Campus Awareness Makes for Protection and Ultimate Safety (C.A.M.P.U.S.), 1997. From Myron E. Scafe, Executive Director, Kansas Racing and Gaming Commission, statistical annual reports for fiscal years 1996, 1995, 1994. From Kay McFarland, Chief Justice, State of the Judiciary, Annual Report of the Chief Justice of the Kansas Supreme Court. From Joyce A. Volmut, Executive Director, Kansas Association for the Medically Underserved, Survey Report, February 1997; also, Economic Impact of Primary Care on the Kansas Economy, A Report of Kansas Primary Care Clinics and Health Centers, January 1997. The complete reports are kept on file and open for inspection in the office of the Chief Clerk. CONSENT CALENDAR No objection was made to HB 2103 appearing on the Consent Calendar for the third day. The bill was advanced to Final Action on Bills and Concurrent Resolutions. FINAL ACTION ON BILLS AND CONCURRENT RESOLUTIONS HB 2103, An act concerning the secretary of corrections; disposition of unclaimed bodies of deceased inmates in custody of secretary of corrections; amending K.S.A. 22a-215 and 65-904 and repealing the existing sections, was considered on final action. On roll call, the vote was: Yeas 122; Nays 0; Present but not voting 0; Absent or not voting 3. Yeas: Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Bradley, Burroughs, Campbell, Carmody, Compton, Correll, Cox, Crow, Dahl, Dean, Dillon, Donovan, Dreher, Edmonds, Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, 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, Osborne, Packer, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, 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: Adkins, Franklin, Schwartz. The bill passed. 360 JOURNAL OF THE HOUSE On motion of Rep. Jennison, the House went into Committee of the Whole, with Rep. O'Connor in the chair. COMMITTEE OF THE WHOLE On motion of Rep. O'Connor, Committee of the Whole report, as follows, was adopted: Recommended that SB 46, 45 be passed. Committee report to HB 2105 be adopted; also, on motion of Rep. Powell be amended on page 36, after line 30, by inserting a new section to read as follows: ``Sec. 34. K.S.A. 1996 Supp. 79-5109 is hereby amended to read as follows: 79-5109. (a) All moneys received from taxes levied upon motor vehicles under the provisions of K.S.A. 79-5101 to 79-5115, inclusive, and amendments thereto shall be allocated to the tax levy unit in which the tax situs of each motor vehicle is located. The term ``tax levy unit'' means an area within a county the tangible property of which is subject to the same total tax levies, levied by the same taxing subdivisions of the state. Moneys allocated to such tax levy units shall be distributed among the state and all taxing subdivisions levying taxes against tangible property within such unit in the proportion prescribed by K.S.A. 79-5111 and amendments thereto for estimating the amounts thereof for budgeting. (b) The county treasurer shall remit all moneys allocated and credited to the state from the proceeds of taxes levied upon motor vehicles to the state treasurer as provided in this subsection. The county treasurer, on or before October 31, January 20, March 5 20, May 20, July 20 and September 5 20 of each year, shall distribute to the state treasurer all such taxes allocated and credited to the state from the proceeds of taxes collected through the month prior to the month of the distribution date. Upon receipt of such moneys, the state treasurer shall deposit the same in the state treasury and shall credit 2/3 of each such deposit to the Kansas educational building fund and 1/3 of each such deposit to the state institutions building fund except that for moneys received during the period from July 1, 1990, to June 30, 1991, inclusive, 2/3 of each such deposit shall be credited to the Kansas educational building fund, 1/6 of each such deposit shall be credited to the state institutions building fund and 1/6 of each such deposit shall be credited to the correctional institutions building fund.''; By renumbering existing sections accordingly; Also, on page 36, in line 35, by striking ``and 79-4226'' and inserting ``, 79-4226 and 795109''; In the title, in line 15, by striking ``and 79-4226'' and inserting ``, 79-4226 and 79-5109''; Also, on further motion of Rep. Powell HB 2105 be amended on page 30, in line 3, after ``made'' by inserting ``pursuant to this section or the provisions of K.S.A. 79-1609, and amendments thereto,'', in line 5, after ``and'' by inserting ``, with respect to protests or appeals commenced after the effective date of this act,''; On page 36, in line 32, by striking ``and 79-3607''; In the title, in line 12, by striking ``and 79-3607''; Also, on motion of Rep. Edmonds HB 2105 be amended on page 36, after line 30, by inserting a new section to read as follows: ``Sec. 34. 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 36, in line 33, before ``79-1422'' by inserting ``79-412,''; In the title, in line 13, before ``79-1422'' by inserting ``79-412,''; Also, on motion of Rep. Wempe HB 2105 be amended on page 36, after line 30, by inserting two new sections to read as follows: ``Sec. 34. K.S.A. 1996 Supp. 79-3606 is hereby amended to read as follows: 79-3606. The following shall be exempt from the tax imposed by this act: March 6, 1997 361 (a) All sales of motor-vehicle fuel or other articles upon which a sales or excise tax has been paid, not subject to refund, under the laws of this state except cigarettes as defined by K.S.A. 79-3301 and amendments thereto, cereal malt beverages and malt products as defined by K.S.A. 79-3817 and amendments thereto, including wort, liquid malt, malt syrup and malt extract, which is not subject to taxation under the provisions of K.S.A. 79-41a02 and amendments thereto, and motor vehicles as defined by K.S.A. 79-1017 and amendments thereto; (b) all sales of tangible personal property or service, including the renting and leasing of tangible personal property, purchased directly by the state of Kansas, a political subdivision thereof, other than a school or educational institution, or purchased by a public or private nonprofit hospital or nonprofit blood, tissue or organ bank and used exclusively for state, political subdivision, hospital or nonprofit blood, tissue or organ bank purposes, except when: (1) Such state or hospital is engaged or proposes to engage in any business specifically taxable under the provisions of this act and such items of tangible personal property or service are used or proposed to be used in such business, or (2) such political subdivision is engaged or proposes to engage in the business of furnishing gas, water, electricity or heat to others and such items of personal property or service are used or proposed to be used in such business; (c) all sales of tangible personal property or services, including the renting and leasing of tangible personal property, purchased directly by a public or private elementary or secondary school or public or private nonprofit educational institution and used primarily by such school or institution for nonsectarian programs and activities provided or sponsored by such school or institution or in the erection, repair or enlargement of buildings to be used for such purposes. The exemption herein provided shall not apply to erection, construction, repair, enlargement or equipment of buildings used primarily for human habitation; (d) all sales of tangible personal property or services purchased by a contractor for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for any public or private nonprofit hospital, public or private elementary or secondary school or a public or private nonprofit educational institution, which would be exempt from taxation under the provisions of this act if purchased directly by such hospital, school or educational institution; and all sales of tangible personal property or services purchased by a contractor for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for any political subdivision of the state, the total cost of which is paid from funds of such political subdivision and which would be exempt from taxation under the provisions of this act if purchased directly by such political subdivision. Nothing in this subsection or in the provisions of K.S.A. 12-3418 and amendments thereto, shall be deemed to exempt the purchase of any construction machinery, equipment or tools used in the constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities for any political subdivision of the state. As used in this subsection, K.S.A. 12-3418 and 79-3640, and amendments thereto, ``funds of a political subdivision'' shall mean general tax revenues, the proceeds of any bonds and gifts or grants-in-aid. Gifts shall not mean funds used for the purpose of constructing, equipping, reconstructing, repairing, enlarging, furnishing or remodeling facilities which are to be leased to the donor. When any political subdivision of the state, public or private nonprofit hospital, public or private elementary or secondary school or public or private nonprofit educational institution shall contract for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities, and the total cost of such services and materials for the project which is the subject of a contract is in excess of $10,000, it shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and the contractor may purchase materials for incorporation in such project. The contractor shall furnish the number of such certificate to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate. Upon completion of the project the contractor shall furnish to the political subdivision, hospital, school or educational institution concerned a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to 362 JOURNAL OF THE HOUSE exemption under this subsection. For any such project having a total cost of $10,000 or less, the contracting entity shall not be required to obtain a project exemption certificate. For projects having a total cost of $10,000 or less, the contracting entity shall instead be entitled to a sales tax exemption in accordance with this subsection upon presenting the contractor with a blanket exemption certificate. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. If any materials purchased under such a certificate are found not to have been incorporated in the building or other project or not to have been returned for credit or the sales or compensating tax otherwise imposed upon such materials which will not be so incorporated in the building or other project reported and paid by such contractor to the director of taxation not later than the 20th day of the month following the close of the month in which it shall be determined that such materials will not be used for the purpose for which such certificate was issued, the political subdivision, hospital, school or educational institution concerned shall be liable for tax on all materials purchased for the project, and upon payment thereof it may recover the same from the contractor together with reasonable attorney fees. Any contractor or any agent, employee or subcontractor thereof, who shall use or otherwise dispose of any materials purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in subsection (g) of K.S.A. 79-3615, and amendments thereto; (e) all sales of tangible personal property or services purchased by a contractor for the erection, repair or enlargement of buildings or other projects for the government of the United States, its agencies or instrumentalities, which would be exempt from taxation if purchased directly by the government of the United States, its agencies or instrumentalities. When the government of the United States, its agencies or instrumentalities shall contract for the erection, repair, or enlargement of any building or other project, and the total cost of such services and materials for the project which is the subject of a contract is in excess of $10,000, it shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and the contractor may purchase materials for incorporation in such project. The contractor shall furnish the number of such certificates to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate. Upon completion of the project the contractor shall furnish to the government of the United States, its agencies or instrumentalities concerned a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection. For any such project having a total cost of $10,000 or less, the contracting entity shall not be required to obtain a project exemption certificate. For projects having a total cost of $10,000 or less, the contracting entity shall instead be entitled to a sales tax exemption in accordance with this subsection upon presenting the contractor with a blanket exemption certificate. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. Any contractor or any agent, employee or subcontractor thereof, who shall use or otherwise dispose of any materials purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in subsection (g) of K.S.A. 79-3615 and amendments thereto; (f) tangible personal property purchased by a railroad or public utility for consumption or movement directly and immediately in interstate commerce; (g) sales of aircraft including remanufactured and modified aircraft, sales of aircraft repair, modification and replacement parts and sales of services employed in the remanufacture, modification and repair of aircraft sold to persons using such aircraft and aircraft repair, modification and replacement parts as certified or licensed carriers of persons or property in interstate or foreign commerce under authority of the laws of the United States or any foreign government or sold to any foreign government or agency or instrumentality of such foreign government and all sales of aircraft, aircraft parts, March 6, 1997 363 replacement parts and services employed in the remanufacture, modification and repair of aircraft for use outside of the United States; (h) all rentals of nonsectarian textbooks by public or private elementary or secondary schools; (i) the lease or rental of all films, records, tapes, or any type of sound or picture transcriptions used by motion picture exhibitors; (j) meals served without charge or food used in the preparation of such meals to employees of any restaurant, eating house, dining car, hotel, drugstore or other place where meals or drinks are regularly sold to the public if such employees' duties are related to the furnishing or sale of such meals or drinks; (k) any motor vehicle, semitrailer or pole trailer, as such terms are defined by K.S.A. 8-126 and amendments thereto, or aircraft sold and delivered in this state to a bona fide resident of another state, which motor vehicle, semitrailer, pole trailer or aircraft is not to be registered or based in this state and which vehicle, semitrailer, pole trailer or aircraft will not remain in this state more than 10 days; (l) all isolated or occasional sales of tangible personal property, services, substances or things, except isolated or occasional sale of motor vehicles specifically taxed under the provisions of subsection (o) of K.S.A. 79-3603 and amendments thereto; (m) all sales of tangible personal property which become an ingredient or component part of tangible personal property or services produced, manufactured or compounded for ultimate sale at retail within or without the state of Kansas; and any such producer, manufacturer or compounder may obtain from the director of taxation and furnish to the supplier an exemption certificate number for tangible personal property for use as an ingredient or component part of the property or services produced, manufactured or compounded; (n) all sales of tangible personal property which is consumed in the production, manufacture, processing, mining, drilling, refining or compounding of tangible personal property, the treating of by-products or wastes derived from any such production process, the providing of services or the irrigation of crops for ultimate sale at retail within or without the state of Kansas; and any purchaser of such property may obtain from the director of taxation and furnish to the supplier an exemption certificate number for tangible personal property for consumption in such production, manufacture, processing, mining, drilling, refining, compounding, treating, irrigation and in providing such services; (o) all sales of animals, fowl and aquatic plants and animals, the primary purpose of which is use in agriculture or aquaculture, as defined in K.S.A. 47-1901, and amendments thereto, the production of food for human consumption, the production of animal, dairy, poultry or aquatic plant and animal products, fiber or fur, or the production of offspring for use for any such purpose or purposes; (p) all sales of drugs, as defined by K.S.A. 65-1626 and amendments thereto, dispensed pursuant to a prescription order, as defined by K.S.A. 65-1626 and amendments thereto, by a licensed practitioner; (q) all sales of insulin dispensed by a person licensed by the state board of pharmacy to a person for treatment of diabetes at the direction of a person licensed to practice medicine by the board of healing arts; (r) all sales of prosthetic and orthopedic appliances prescribed in writing by a person licensed to practice the healing arts, dentistry or optometry. For the purposes of this subsection, the term prosthetic and orthopedic appliances means any apparatus, instrument, device, or equipment used to replace or substitute for any missing part of the body; used to alleviate the malfunction of any part of the body; or used to assist any disabled person in leading a normal life by facilitating such person's mobility; such term shall include accessories to be attached to motor vehicles, but such term shall not include motor vehicles or personal property which when installed becomes a fixture to real property; (s) all sales of tangible personal property or services purchased directly by a groundwater management district organized or operating under the authority of K.S.A. 82a-1020 et seq. and amendments thereto, which property or services are used in the operation or maintenance of the district; 364 JOURNAL OF THE HOUSE (t) all sales of farm machinery and equipment or aquaculture machinery and equipment, repair and replacement parts therefor and services performed in the repair and maintenance of such machinery and equipment. For the purposes of this subsection the term ``farm machinery and equipment or aquaculture machinery and equipment'' shall include machinery and equipment used in the operation of Christmas tree farming but shall not include any passenger vehicle, truck, truck tractor, trailer, semitrailer or pole trailer, other than a farm trailer, as such terms are defined by K.S.A. 8-126 and amendments thereto. Each purchaser of farm machinery and equipment or aquaculture machinery and equipment exempted herein must certify in writing on the copy of the invoice or sales ticket to be retained by the seller that the farm machinery and equipment or aquaculture machinery and equipment purchased will be used only in farming, ranching or aquaculture production. Farming or ranching shall include the operation of a feedlot and farm and ranch work for hire and the operation of a nursery; (u) all leases or rentals of tangible personal property used as a dwelling if such tangible personal property is leased or rented for a period of more than 28 consecutive days; (v) all sales of food products to any contractor for use in preparing meals for delivery to homebound elderly persons over 60 years of age and to homebound disabled persons or to be served at a group-sitting at a location outside of the home to otherwise homebound elderly persons over 60 years of age and to otherwise homebound disabled persons, as all or part of any food service project funded in whole or in part by government or as part of a private nonprofit food service project available to all such elderly or disabled persons residing within an area of service designated by the private nonprofit organization, and all sales of food products for use in preparing meals for consumption by indigent or homeless individuals whether or not such meals are consumed at a place designated for such purpose; (w) all sales of natural gas, electricity, heat and water delivered through mains, lines or pipes: (1) To residential premises for noncommercial use by the occupant of such premises; (2) for agricultural use and also, for such use, all sales of propane gas; (3) for use in the severing of oil; and (4) to any property which is exempt from property taxation pursuant to K.S.A. 79-201b Second through Sixth. As used in this paragraph, ``severing'' shall have the meaning ascribed thereto by subsection (k) of K.S.A. 79-4216, and amendments thereto; (x) all sales of propane gas, LP-gas, coal, wood and other fuel sources for the production of heat or lighting for noncommercial use of an occupant of residential premises; (y) all sales of materials and services used in the repairing, servicing, altering, maintaining, manufacturing, remanufacturing, or modification of railroad rolling stock for use in interstate or foreign commerce under authority of the laws of the United States; (z) all sales of tangible personal property and services purchased directly by a port authority or by a contractor therefor as provided by the provisions of K.S.A. 12-3418 and amendments thereto; (aa) all sales of materials and services applied to equipment which is transported into the state from without the state for repair, service, alteration, maintenance, remanufacture or modification and which is subsequently transported outside the state for use in the transmission of liquids or natural gas by means of pipeline in interstate or foreign commerce under authority of the laws of the United States; (bb) all sales of used mobile homes or manufactured homes. As used in this subsection: (1) ``Mobile homes'' and ``manufactured homes'' shall have the meanings ascribed thereto by K.S.A. 58-4202 and amendments thereto; and (2) ``sales of used mobile homes or manufactured homes'' means sales other than the original retail sale thereof; (cc) all sales of tangible personal property or services purchased for the purpose of and in conjunction with constructing, reconstructing, enlarging or remodeling a business or retail business which meets the requirements established in K.S.A. 74-50,115 and amendments thereto, and the sale and installation of machinery and equipment purchased for installation at any such business or retail business. When a person shall contract for the construction, reconstruction, enlargement or remodeling of any such business or retail business, such person shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and the contractor may purchase materials, machinery and equipment for incorporation in such project. The contractor shall furnish the number of such certificates to all suppliers from whom such purchases are made, and such suppliers shall execute March 6, 1997 365 invoices covering the same bearing the number of such certificate. Upon completion of the project the contractor shall furnish to the owner of the business or retail business a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. Any contractor or any agent, employee or subcontractor thereof, who shall use or otherwise dispose of any materials, machinery or equipment purchased under such a certificate for any purpose other than that for which such a certificate is issued without the payment of the sales or compensating tax otherwise imposed thereon, shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in subsection (g) of K.S.A. 79-3615 and amendments thereto. As used in this subsection, ``business'' and ``retail business'' have the meanings respectively ascribed thereto by K.S.A. 74-50,114 and amendments thereto; (dd) all sales of tangible personal property purchased with food stamps issued by the United States department of agriculture; (ee) all sales of lottery tickets and shares made as part of a lottery operated by the state of Kansas; (ff) on and after July 1, 1988, all sales of new mobile homes or manufactured homes to the extent of 40% of the gross receipts, determined without regard to any trade-in allowance, received from such sale. As used in this subsection, ``mobile homes'' and ``manufactured homes'' shall have the meanings ascribed thereto by K.S.A. 58-4202 and amendments thereto; (gg) all sales of tangible personal property purchased in accordance with vouchers issued pursuant to the federal special supplemental food program for women, infants and children; (hh) all sales of medical supplies and equipment purchased directly by a nonprofit skilled nursing home or nonprofit intermediate nursing care home, as defined by K.S.A. 39-923, and amendments thereto, for the purpose of providing medical services to residents thereof. This exemption shall not apply to tangible personal property customarily used for human habitation purposes; (ii) all sales of tangible personal property purchased directly by a nonprofit organization for nonsectarian comprehensive multidiscipline youth development programs and activities provided or sponsored by such organization. This exemption shall not apply to tangible personal property customarily used for human habitation purposes; (jj) all sales of tangible personal property or services, including the renting and leasing of tangible personal property, purchased directly on behalf of a community-based mental retardation facility or mental health center organized pursuant to K.S.A. 19-4001 et seq., and amendments thereto, and licensed in accordance with the provisions of K.S.A. 75-3307b and amendments thereto. This exemption shall not apply to tangible personal property customarily used for human habitation purposes; (kk) on and after January 1, 1989, all sales of machinery and equipment used directly and primarily for the purposes of manufacturing, assembling, processing, finishing, storing, warehousing or distributing articles of tangible personal property in this state intended for resale by a manufacturing or processing plant or facility or a storage, warehousing or distribution facility: (1) For purposes of this subsection, machinery and equipment shall be deemed to be used directly and primarily in the manufacture, assemblage, processing, finishing, storing, warehousing or distributing of tangible personal property where such machinery and equipment is used during a manufacturing, assembling, processing or finishing, storing, warehousing or distributing operation: (A) To effect a direct and immediate physical change upon the tangible personal property; (B) to guide or measure a direct and immediate physical change upon such property where such function is an integral and essential part of tuning, verifying or aligning the component parts of such property; (C) to test or measure such property where such function is an integral part of the production flow or function; (D) to transport, convey or handle such property during the manufacturing, processing, storing, warehousing or distribution operation at the plant or facility; or 366 JOURNAL OF THE HOUSE (E) to place such property in the container, package or wrapping in which such property is normally sold or transported. (2) For purposes of this subsection ``machinery and equipment used directly and primarily'' shall include, but not be limited to: (A) Mechanical machines or major components thereof contributing to a manufacturing, assembling or finishing process; (B) molds and dies that determine the physical characteristics of the finished product or its packaging material; (C) testing equipment to determine the quality of the finished product; (D) computers and related peripheral equipment that directly control or measure the manufacturing process or which are utilized for engineering of the finished product; and (E) computers and related peripheral equipment utilized for research and development and product design. (3) ``Machinery and equipment used directly and primarily'' shall not include: (A) Hand tools; (B) machinery, equipment and tools used in maintaining and repairing any type of machinery and equipment; (C) transportation equipment not used in the manufacturing, assembling, processing, furnishing, storing, warehousing or distributing process at the plant or facility; (D) office machines and equipment including computers and related peripheral equipment not directly and primarily used in controlling or measuring the manufacturing process; (E) furniture and buildings; and (F) machinery and equipment used in administrative, accounting, sales or other such activities of the business; (ll) all sales of educational materials purchased for distribution to the public at no charge by a nonprofit corporation organized for the purpose of encouraging, fostering and conducting programs for the improvement of public health; (mm) all sales of seeds and tree seedlings; fertilizers, insecticides, herbicides, germicides, pesticides and fungicides; and services, purchased and used for the purpose of producing plants in order to prevent soil erosion on land devoted to agricultural use; (nn) except as otherwise provided in this act, all sales of services rendered by an advertising agency or licensed broadcast station or any member, agent or employee thereof; (oo) all sales of tangible personal property purchased by a community action group or agency for the exclusive purpose of repairing or weatherizing housing occupied by low income individuals; (pp) all sales of drill bits and explosives actually utilized in the exploration and production of oil or gas; (qq) all sales of tangible personal property and services purchased by a nonprofit museum or historical society or any combination thereof, including a nonprofit organization which is organized for the purpose of stimulating public interest in the exploration of space by providing educational information, exhibits and experiences, which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986; (rr) all sales of tangible personal property which will admit the purchaser thereof to any annual event sponsored by a nonprofit organization which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986; (ss) all sales of tangible personal property and services purchased by a public broadcasting station licensed by the federal communications commission as a noncommercial educational television or radio station; and (tt) all sales of tangible personal property and services purchased by or on behalf of a not-for-profit corporation which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986, for the sole purpose of constructing a Kansas Korean War memorial. New Sec. 35. (a) Upon application therefor, the secretary of revenue or the secretary's designee shall issue a blanket sales tax exemption certificate to a political subdivision of the state. Any contractor, subcontractor or repair person may purchase material or service, or March 6, 1997 367 any combination thereof, for use in a qualifying contract the total cost of which is $10,000 or less and may use such blanket certificate number when making purchases from suppliers under such contract. (b) The political subdivision shall attach a suffix number to the blanket certificate number for each project of $10,000 or less as such projects are authorized. Such suffix number shall be reported to the director of taxation by the political subdivision.''; By renumbering existing sections accordingly; Also, on page 36, in line 34, after the last comma, by inserting ``79-3606,''; In the title, in line 15, before 79-3609 by inserting ``79-3606,''; Also, on motion of Rep. Correll HB 2105 be amended on page 36, after line 30, by inserting a new section to read as follows: ``Sec. 34. K.S.A. 19-430 is hereby amended to read as follows: 19-430. On July 1, 1993, and on July 1 of each fourth year thereafter, the board of county commissioners of each county shall by resolution appoint a county appraiser for such county who shall serve for a term of four years and until a successor is appointed. County appraisers appointed in counties having a population of more than 20,000 25,000 shall devote full time to the duties of such office but county appraisers appointed in counties having a population of 20,000 25,000 or less may be appointed either as a full-time or a part-time county appraiser as prescribed in the resolution providing for such appointment. No person shall be appointed or reappointed to or serve as county appraiser in any county under the provisions of this act unless such person shall have at least one year of appraisal experience and be qualified by the director of property valuation as an eligible Kansas appraiser under the provisions of this act. Whenever a vacancy shall occur in the office of county appraiser the board of county commissioners shall appoint an eligible Kansas appraiser to fill such vacancy for the unexpired term and until a successor is appointed. The person holding the office of county assessor or performing the duties thereof on the effective date of this act shall continue to hold such office and perform such duties until a county appraiser is appointed under the provisions of this act. No person shall be appointed to the office of county or district appraiser or to fill a vacancy therein unless such person is currently a state licensed real property appraiser, a certified general real property appraiser or certified residential real property appraiser pursuant to article 41 of chapter 58 of the Kansas Statutes Annotated, and amendments thereto, except that from and after July 1, 1997, no person shall be appointed to the office of county or district appraiser or to fill a vacancy therein, in any county under the provisions of this act unless such person is currently a certified general real property appraiser pursuant to article 41 of chapter 58 of the Kansas Statutes Annotated and amendments thereto. Notwithstanding the foregoing provision, any person who holds the office of county appraiser upon the expiration of the term of such office shall be eligible for reappointment to such office regardless of whether such person is so certified or licensed.''; By renumbering existing sections to read as follows: Also, on page 36, in line 31, before ``77-548'' by inserting ``19-430,''; In the title, in line 11, before ``77-548'' by inserting ``19-430,''; Also, on motion of Rep. Reardon to amend HB 2105, the motion did not prevail. Also, on motion of Rep. Larkin HB 2105 be amended on page 36, after line 30, by inserting a new section to read as follows: ``Sec. 34. K.S.A. 79-2002 is hereby amended to read as follows: 79-2002. Receipts shall be given for all taxes received by the county treasurer upon request of the taxpayer. Payment of current ad valorem property taxes shall be validated by a statement indicating the date received and the amount paid on all copies of such receipts.''; By renumbering existing sections accordingly; Also, on page 36, in line 31, after the last comma by inserting ``79-2002,''; In the title, in line 12, after the first comma by inserting ``79-2002,''; Also, on further motion of Rep. Larkin HB 2105 be amended on page 1, in line 38, by striking ``plus 1%'' and inserting ``minus 3%''; Also, on motion of Rep. Boston HB 2105 be amended on page 36, after line 30, by inserting a new section to read as follows: 368 JOURNAL OF THE HOUSE ``Sec. 34. K.S.A. 1996 Supp. 79-213 is hereby amended to read as follows: 79-213. (a) Any property owner requesting an exemption from the payment of ad valorem property taxes assessed, or to be assessed, against their property shall be required to file an initial request for exemption, on forms approved by the board of tax appeals and provided by the county appraiser. (b) The initial exemption request shall identify the property for which the exemption is requested and state, in detail, the legal and factual basis for the exemption claimed. (c) The request for exemption shall be filed with the county appraiser of the county where such property is principally located. (d) After a review of the exemption request, and after a preliminary examination of the facts as alleged, the county appraiser shall recommend that the exemption request either be granted or denied, and, if necessary, that a hearing be held. If a denial is recommended, a statement of the controlling facts and law relied upon shall be included on the form. (e) The county appraiser, after making such written recommendation, shall file the request for exemption and the recommendations of the county appraiser with the board of tax appeals. (f) Upon receipt of the request for exemption, the board shall docket the same and notify the applicant and the county appraiser of such fact. (g) After examination of the request for exemption, and the county appraiser's recommendation related thereto, the board may fix a time and place for hearing, and shall notify the applicant and the county appraiser of the time and place so fixed. In any case where a party to such request for exemption requests a hearing thereon, the same shall be granted. Hearings shall be conducted in accordance with the provisions of the Kansas administrative procedure act. In all instances where the board sets a request for exemption for hearing, the county shall be represented by its county attorney or county counselor. (h) In the event of a hearing, the same shall be originally set not later than 90 days after the filing of the request for exemption with the board. (i) During the pendency of a request for exemption, no person, firm, unincorporated association, company or corporation charged with real estate or personal property taxes pursuant to K.S.A. 79-2004 and 79-2004a, and amendments thereto, on the tax books in the hands of the county treasurer shall be required to pay the tax from the date the request is filed with the county appraiser until the expiration of 30 days after the board issued its order thereon and the same becomes a final order. In the event that taxes have been assessed against the subject property, no interest shall accrue on any unpaid tax for the year or years in question nor shall the unpaid tax be considered delinquent from the date the request is filed with the county appraiser until the expiration of 30 days after the board issued its order thereon. In the event the board determines an application for exemption is without merit and filed in bad faith to delay the due date of the tax, the tax shall be considered delinquent as of the date the tax would have been due pursuant to K.S.A. 79-2004 and 79-2004a, and amendments thereto, and interest shall accrue as prescribed therein. (j) In the event the board grants the initial request for exemption, the same shall be effective beginning with the date of first exempt use except that, with respect to property the construction of which commenced not to exceed 24 months prior to the date of first exempt use, the same shall be effective beginning with the date of commencement of construction. (k) In conjunction with its authority to grant exemptions, the board shall have the authority to abate all unpaid taxes that have accrued from and since the date of first exempt use effective date of the exemption. In the event that taxes have been paid during the period where the subject property has been determined to be exempt, the board shall have the authority to order a refund of taxes for a period not to exceed three years. (l) The provisions of this section shall not apply to: (1) Farm machinery and equipment exempted from ad valorem taxation by K.S.A. 79-201j, and amendments thereto; (2) personal property exempted from ad valorem taxation by K.S.A. 79-215, and amendments thereto; (3) wearing apparel, household goods and personal effects exempted from ad valorem taxation by K.S.A. 79-201c, and amendments thereto; (4) livestock; (5) hay and silage exempted from ad valorem taxation by K.S.A. 79-201d, and amendments thereto; (6) merchants' and manufacturers' inventories exempted from ad valorem taxation by K.S.A. March 6, 1997 369 79-201m and amendments thereto; (7) grain exempted from ad valorem taxation by K.S.A. 79-201n, and amendments thereto; (8) property exempted from ad valorem taxation by K.S.A. 79-201a Seventeenth and amendments thereto, including all property previously acquired by the secretary of transportation or a predecessor in interest, which is used in the administration, construction, maintenance or operation of the state system of highways. The secretary of transportation shall at the time of acquisition of property notify the county appraiser in the county in which the property is located that the acquisition occurred and provide a legal description of the property acquired; (9) property exempted from ad valorem taxation by K.S.A. 79-201a Ninth, and amendments thereto, including all property previously acquired by the Kansas turnpike authority which is used in the administration, construction, maintenance or operation of the Kansas turnpike. The Kansas turnpike authority shall at the time of acquisition of property notify the county appraiser in the county in which the property is located that the acquisition occurred and provide a legal description of the property acquired; (10) aquaculture machinery and equipment exempted from ad valorem taxation by K.S.A. 79-201j, and amendments thereto. As used in this section, ``aquaculture'' has the same meaning ascribed thereto by K.S.A. 47-1901, and amendments thereto; (11) Christmas tree machinery and equipment exempted from ad valorem taxation by K.S.A. 79201j, and amendments thereto; (12) property used exclusively by the state or any municipality or political subdivision of the state for right-of-way purposes. The state agency or the governing body of the municipality or political subdivision shall at the time of acquisition of property for right-of-way purposes notify the county appraiser in the county in which the property is located that the acquisition occurred and provide a legal description of the property acquired; (13) machinery, equipment, materials and supplies exempted from ad valorem taxation by K.S.A. 1996 Supp. 79-201w, and amendments thereto; and (14) vehicles owned by the state or by any political or taxing subdivision thereof and used exclusively for governmental purposes. (m) The provisions of this section shall apply to property exempt pursuant to the provisions of section 13 of article 11 of the Kansas constitution. (n) The provisions of subsection (j) and (k) as amended by this act shall be applicable to all taxable years commencing after December 31, 1995.''; By renumbering existing sections; Also, on page 36, in line 33, before ``79-332a'' by inserting ``79-213,''; In the title, in line 13, before ``79-332a'' by inserting ``79-213,''; Also, on motion of Rep. Wempe HB 2105 be amended on page 35, in line 18, after the period by inserting ``The provisions of subsection (c) shall not be applicable to any such investigation conducted outside the state of Kansas.'' Also, on motion of Rep. Howell HB 2105 be amended on page 36, after line 30, by inserting a new section to read as follows: ``Sec. 34. K.S.A. 1996 Supp. 79-201a is hereby amended to read as follows: 79-201a. The following described property, to the extent herein specified, shall be exempt from all property or ad valorem taxes levied under the laws of the state of Kansas: First. All property belonging exclusively to the United States, except property which congress has expressly declared to be subject to state and local taxation. Second. All property used exclusively by the state or any municipality or political subdivision of the state. All property owned, being acquired pursuant to a lease-purchase agreement or operated by the state or any municipality or political subdivision of the state, including property which is vacant or lying dormant, which is used or is to be used for any governmental or proprietary function and for which bonds may be issued or taxes levied to finance the same, shall be considered to be ``used exclusively'' by the state, municipality or political subdivision for the purposes of this section. The lease by a municipality or political subdivision of the state of any real property owned or being acquired pursuant to a leasepurchase agreement for the purpose of providing office space necessary for the performance of medical services by a person licensed to practice medicine and surgery or osteopathic medicine by the board of healing arts pursuant to K.S.A. 65-2801 et seq., and amendments thereto, shall be construed to be a governmental function, and such property actually and regularly used for such purpose shall be deemed to be used exclusively for the purposes of this paragraph. The lease by a municipality or political subdivision of the state of any real 370 JOURNAL OF THE HOUSE property, or portion thereof, owned or being acquired pursuant to a lease-purchase agreement to any entity for the exclusive use by it for an exempt purpose, including the purpose of displaying or exhibiting personal property by a museum or historical society, if no portion of the lease payments include compensation for return on the investment in such leased property shall be deemed to be used exclusively for the purposes of this paragraph. All property leased, other than property being acquired pursuant to a lease-purchase agreement, to the state or any municipality or political subdivision of the state by any private entity shall not be considered to be used exclusively by the state or any municipality or political subdivision of the state for the purposes of this section except that the provisions of this sentence shall not apply to any such property subject to lease on the effective date of this act until the term of such lease expires but property taxes levied upon any such property prior to tax year 1989, shall not be abated or refunded. Any property constructed or purchased with the proceeds of industrial revenue bonds issued prior to July 1, 1963, as authorized by K.S.A. 12-1740 to 12-1749, or purchased with proceeds of improvement district bonds issued prior to July 1, 1963, as authorized by K.S.A. 19-2776, or with proceeds of bonds issued prior to July 1, 1963, as authorized by K.S.A. 19-3815a and 19-3815b, or any property improved, purchased, constructed, reconstructed or repaired with the proceeds of revenue bonds issued prior to July 1, 1963, as authorized by K.S.A. 13-1238 to 13-1245, inclusive, or any property improved, reimproved, reconstructed or repaired with the proceeds of revenue bonds issued after July 1, 1963, under the authority of K.S.A. 13-1238 to 13-1245, inclusive, which had previously been improved, reconstructed or repaired with the proceeds of revenue bonds issued under such act on or before July 1, 1963, shall be exempt from taxation for so long as any of the revenue bonds issued to finance such construction, reconstruction, improvement, repair or purchase shall be outstanding and unpaid. Any property constructed or purchased with the proceeds of any revenue bonds authorized by K.S.A. 13-1238 to 13-1245, inclusive, 19-2776, 19-3815a and 19-3815b, and amendments thereto, issued on or after July 1, 1963, shall be exempt from taxation only for a period of 10 calendar years after the calendar year in which the bonds were issued. Any property, all or any portion of which is constructed or purchased with the proceeds of revenue bonds authorized by K.S.A. 12-1740 to 12-1749, inclusive, and amendments thereto, issued on or after July 1, 1963 and prior to July 1, 1981, shall be exempt from taxation only for a period of 10 calendar years after the calendar year in which the bonds were issued. Except as hereinafter provided, any property constructed or purchased wholly with the proceeds of revenue bonds issued on or after July 1, 1981, under the authority of K.S.A. 12-1740 to 12-1749, inclusive, and amendments thereto, shall be exempt from taxation only for a period of 10 calendar years after the calendar year in which the bonds were issued. Except as hereinafter provided, any property constructed or purchased in part with the proceeds of revenue bonds issued on or after July 1, 1981, under the authority of K.S.A. 12-1740 to 12-1749, inclusive, and amendments thereto, shall be exempt from taxation to the extent of the value of that portion of the property financed by the revenue bonds and only for a period of 10 calendar years after the calendar year in which the bonds were issued. The exemption of that portion of the property constructed or purchased with the proceeds of revenue bonds shall terminate upon the failure to pay all taxes levied on that portion of the property which is not exempt and the entire property shall be subject to sale in the manner prescribed by K.S.A. 79-2301 et seq., and amendments thereto. Property constructed or purchased in whole or in part with the proceeds of revenue bonds issued on or after January 1, 1995, under the authority of K.S.A. 12-1740 to 12-1749, inclusive, and amendments thereto, and used in any retail enterprise identified under the standard industrial classification codes, major groups 52 through 59, inclusive, except facilities used exclusively to house the headquarters or back office operations of such retail enterprises identified thereunder, shall not be exempt from taxation. For the purposes of the preceding provision ``standard industrial classification code'' means a standard industrial classification code published in the Standard Industrial Classification manual, 1987, as prepared by the statistical policy division of the office of management and budget of the office of the president of the United States. ``Headquarters or back office operations'' means a facility from which the enterprise is provided direction, management, administrative services, or distribution or warehousing functions in support of transactions made by the enterprise. March 6, 1997 371 Property purchased, constructed, reconstructed, equipped, maintained or repaired with the proceeds of industrial revenue bonds issued under the authority of K.S.A. 12-1740 et seq., and amendments thereto, which is located in a redevelopment project area established under the authority of K.S.A. 12-1770 et seq. shall not be exempt from taxation. Property purchased, acquired, constructed, reconstructed, improved, equipped, furnished, repaired, enlarged or remodeled with all or any part of the proceeds of revenue bonds issued under authority of K.S.A. 12-1740 to 12-1749a, inclusive, and amendments thereto for any poultry confinement facility on agricultural land which is owned, acquired, obtained or leased by a corporation, as such terms are defined by K.S.A. 17-5903 and amendments thereto, shall not be exempt from such taxation. Property purchased, acquired, constructed, reconstructed, improved, equipped, furnished, repaired, enlarged or remodeled with all or any part of the proceeds of revenue bonds issued under the authority of K.S.A. 12-1740 to 12-1749a, inclusive, and amendments thereto, for a rabbit confinement facility on agricultural land which is owned, acquired, obtained or leased by a corporation, as such terms are defined by K.S.A. 17-5903 and amendments thereto, shall not be exempt from such taxation. Third. All works, machinery and fixtures used exclusively by any rural water district or township water district for conveying or production of potable water in such rural water district or township water district, and all works, machinery and fixtures used exclusively by any entity which performed the functions of a rural water district on and after January 1, 1990, and the works, machinery and equipment of which were exempted hereunder on March 13, 1995. Fourth. All fire engines and other implements used for the extinguishment of fires, with the buildings used exclusively for the safekeeping thereof, and for the meeting of fire companies, whether belonging to any rural fire district, township fire district, town, city or village, or to any fire company organized therein or therefor. Fifth. All property, real and personal, owned by county fair associations organized and operating under the provisions of K.S.A. 2-125 et seq. and amendments thereto. Sixth. Property acquired and held by any municipality under the municipal housing law (K.S.A. 17-2337 et seq.) and amendments thereto, except that such exemption shall not apply to any portion of the project used by a nondwelling facility for profit making enterprise. Seventh. All property of a municipality, acquired or held under and for the purposes of the urban renewal law (K.S.A. 17-4742 et seq.) and amendments thereto except that such tax exemption shall terminate when the municipality sells, leases or otherwise disposes of such property in an urban renewal area to a purchaser or lessee which is not a public body entitled to tax exemption with respect to such property. Eighth. All property acquired and held by the Kansas armory board for armory purposes under the provisions of K.S.A. 48-317, and amendments thereto. Ninth. All property acquired and used by the Kansas turnpike authority under the authority of K.S.A. 68-2001 et seq., and amendments thereto, K.S.A. 68-2030 et seq., and amendments thereto, K.S.A. 68-2051 et seq., and amendments thereto, and K.S.A. 68-2070 et seq., and amendments thereto. Tenth. All property acquired and used for state park purposes by the Kansas department of wildlife and parks. Eleventh. The state office building constructed under authority of K.S.A. 75-3607 et seq., and amendments thereto, and the site upon which such building is located. Twelfth. All buildings erected under the authority of K.S.A. 76-6a01 et seq., and amendments thereto, and all other student union buildings and student dormitories erected upon the campus of any institution mentioned in K.S.A. 76-6a01, and amendments thereto, by any other nonprofit corporation. Thirteenth. All buildings, as the same is defined in subsection (c) of K.S.A. 76-6a13, and amendments thereto, which are erected, constructed or acquired under the authority of K.S.A. 76-6a13 et seq., and amendments thereto, and building sites acquired therefor. Fourteenth. All that portion of the waterworks plant and system of the city of Kansas City, Missouri, now or hereafter located within the territory of the state of Kansas pursuant to the compact and agreement adopted by chapter 304 of the 1921 Session Laws of the state of Kansas. See K.S.A. 79-205. 372 JOURNAL OF THE HOUSE Fifteenth. All property, real and personal, owned by a groundwater management district organized and operating pursuant to K.S.A. 82a-1020, and amendments thereto. Sixteenth. All property, real and personal, owned by the joint water district organized and operating pursuant to K.S.A. 80-1616 et seq., and amendments thereto. Seventeenth. All property, including interests less than fee ownership, acquired for the state of Kansas by the secretary of transportation or a predecessor in interest which is used in the administration, construction, maintenance or operation of the state system of highways, regardless of how or when acquired. Except as otherwise specifically provided, the provisions of this section shall apply to all taxable years commencing after December 31, 1994 1996.''; By renumbering existing sections accordingly; Also, on page 36, in line 33, before ``79-332a'' by inserting ``79-201a,''; In the title, in line 13, before ``79-332a'' by inserting ``79-201a,''; Also, on motion of Rep. Powers to amend HB 2105, Rep. Powell requested a ruling on the amendment being germane to the bill. The Rules Chair ruled the amendment not germane. Rep. Powers challenged the ruling, the question being ``Shall the Rules Chair be sustained?'' The Rules Chair was sustained, and HB 2105 be passed as amended. REPORTS OF STANDING COMMITTEES The Committee on Education recommends HB 2389 be amended on page 1, in line 36, by striking ``endowment''; also in line 36, by striking ``, inc.,''; and the bill be passed as amended. The Committee on Federal and State Affairs recommends HB 2159 be amended on page 1, in line 19, by striking ``16'' and inserting ``17''; in line 24, by striking ``The'' and inserting ``On and after January 1, 1998, the''; in line 38, by striking ``The'' and inserting ``On and after January 1, 1998, the''; On page 2, in line 3, following ``convicted'' by inserting ``or placed on diversion''; also in line 3, by striking ``of'' and inserting ``for''; in line 9, by striking ``59-2902'' and inserting ``1996 Supp. 59-2946''; in line 12, following ``convicted'' by inserting ``or placed on diversion''; in line 13, by striking ``of'' and inserting ``for''; in line 17, following ``diversion'' by inserting ``, in this or any other jurisdiction,''; in line 18, following ``for'' by inserting ``an act that constitutes''; also in line 18, by striking the comma; in line 19, by striking all preceding the semicolon and inserting ``; (H) convicted or placed on diversion, in this or any other jurisdiction, for an act that constitutes a misdemeanor under article 34 or 35 of chapter 21 of the Kansas Statutes Annotated or adjudicated, in this or any other jurisdiction, of committing as a juvenile an act that would be a misdemeanor under article 34 or 35 of chapter 21 of the Kansas Statutes Annotated if committed by an adult; or (I) convicted or placed on diversion, in this or any other jurisdiction, for an act that constitutes a violation of section 12 or a violation of subsection (a)(4) of K.S.A. 21-4201 and amendments thereto or adjudicated, in this or any other jurisdiction, of committing as a juvenile an act that would be a violation of section 12 or a violation of subsection (a)(4) of K.S.A. 21-4201 and amendments thereto if committed by an adult''; in line 24, by striking ``(c)'' and inserting ``(b)''; in line 31, by striking ``not a noncitizen who is in the United States illegally'' and inserting ``a citizen''; by striking all in lines 34 through 41; in line 42, by striking ``(c)(1)'' and inserting ``(b)(1)''; On page 3, in line 3, preceding ``actual'' by inserting ``safe storage of weapons,''; in line 7, by striking ``or by the national rifle association''; in line 10, by striking ``or the national rifle association''; in line 19, by striking ``(d)'' and inserting ``(c)''; in line 23, by striking ``(c)(1)'' and inserting ``(b)(1)''; in line 31, following ``(3)'' by inserting ``a waiver of the confidentiality of such mental health and medical records as necessary to determine the applicant's qualifications under subsection (a)(5) of section 4; (4)''; Also on page 3, in line 33, by striking ``(4)'' and inserting ``(5)''; in line 37, by striking ``(5)'' and inserting ``(6)''; On page 4, in line 5, by striking ``(c)'' and inserting ``(b)''; in line 10, by striking ``processed'' and inserting ``taken and forwarded to the bureau for processing''; in line 13, by striking March 6, 1997 373 ``processing'' and inserting ``taking''; in line 26, by striking all following ``bureau''; in line 27, by striking all preceding ``shall''; in line 31, preceding ``If'' by inserting ``The bureau shall issue the license or deny the application within 180 days after the date of receipt of the items listed in subsection (b), for applications received before July 1, 1998, and within 90 days after the date of receipt of the items listed in subsection (b), for applications received on or after July 1, 1998.''; On page 5, in line 17, by striking ``(d)'' and inserting ``(c)''; On page 6, in line 22, following ``federal'' by inserting ``or state''; following line 23, by inserting the following: ``New Sec. 11. Nothing in this act shall be construed to prevent: (a) Any public or private employer from restricting or prohibiting in any manner persons licensed under this act from carrying a concealed weapon while on the premises of the employer's business or while engaged in the duties of the person's employment by the employer; or (b) any entity owning or operating business premises open to the public from restricting or prohibiting in any manner persons licensed under this act from carrying a concealed weapon while on such premises, provided that the premises are posted, in a manner reasonably likely to come to the attention of persons entering the premises, as premises where carrying a concealed weapon is prohibited.''; And by renumbering sections 11 through 17 accordingly; On page 7, in line 12, by striking ``each month beginning with the month that'' and inserting ``on each July 1 and January 1 after''; On page 10, in line 34, by striking ``15'' and inserting ``17''; following line 43, by inserting the following: ``Sec. 12. K.S.A. 1996 Supp. 12-4516 is hereby amended to read as follows: 12-4516. (a) Except as provided in subsection (b), any person who has been convicted of a violation of a city ordinance of this state may petition the convicting court for the expungement of such conviction if three or more years have elapsed since the person: (1) Satisfied the sentence imposed; or (2) was discharged from probation, parole or a suspended sentence. (b) No person may petition for expungement until five or more years have elapsed since the person satisfied the sentence imposed or was discharged from probation, parole, conditional release or a suspended sentence, if such person was convicted of the violation of a city ordinance which would also constitute: (1) Vehicular homicide, as defined by K.S.A. 21-3405, and amendments thereto; (2) a violation of K.S.A. 8-1567, and amendments thereto; (3) driving while the privilege to operate a motor vehicle on the public highways of this state has been canceled, suspended or revoked, as prohibited by K.S.A. 8-262, and amendments thereto; (4) perjury resulting from a violation of K.S.A. 8-261a, and amendments thereto; (5) a violation of the provisions of the fifth clause of K.S.A. 8-142, and amendments thereto, relating to fraudulent applications; (6) any crime punishable as a felony wherein a motor vehicle was used in the perpetration of such crime; (7) failing to stop at the scene of an accident and perform the duties required by K.S.A. 8-1602, 8-1603 or 8-1604, and amendments thereto; (8) a violation of the provisions of K.S.A. 40-3104, and amendments thereto, relating to motor vehicle liability insurance coverage; or (9) a violation of K.S.A. 21-3405b, and amendments thereto. (c) When a petition for expungement is filed, the court shall set a date for a hearing thereon and shall give notice thereof to the prosecuting attorney. The petition shall state: (1) The defendant's full name; (2) the full name of the defendant at the time of arrest and conviction, if different than the defendant's current name; (3) the defendant's sex, race, and date of birth; (4) the crime for which the defendant was convicted; (5) the date of the defendant's conviction; and (6) the identity of the convicting court. A municipal court may prescribe a fee to be charged as costs for a person petitioning for an order of expungement pursuant to this section. Any person who may have relevant information about the petitioner 374 JOURNAL OF THE HOUSE may testify at the hearing. The court may inquire into the background of the petitioner and shall have access to any reports or records relating to the petitioner that are on file with the secretary of corrections or the Kansas parole board. (d) At the hearing on the petition, the court shall order the petitioner's conviction expunged if the court finds that: (1) The petitioner has not been convicted of a felony in the past two years and no proceeding involving any such crime is presently pending or being instituted against the petitioner; (2) the circumstances and behavior of the petitioner warrant the expungement; and (3) the expungement is consistent with the public welfare. (e) When the court has ordered a conviction expunged, the order of expungement shall state the information required to be contained in the petition. The clerk of the court shall send a certified copy of the order of expungement to the Kansas bureau of investigation which shall notify the federal bureau of investigation, the secretary of corrections and any other criminal justice agency which may have a record of the conviction. After the order of expungement is entered, the petitioner shall be treated as not having been convicted of the crime, except that: (1) Upon conviction for any subsequent crime, the conviction that was expunged may be considered as a prior conviction in determining the sentence to be imposed; (2) the petitioner shall disclose that the conviction occurred if asked about previous convictions (A) in any application for employment as a detective with a private detective agency, as defined by K.S.A. 75-7b01, and amendments thereto; as security personnel with a private patrol operator, as defined by K.S.A. 75-7b01, and amendments thereto; with a criminal justice agency, as defined by K.S.A. 22-4701, and amendments thereto; or with an institution, as defined in K.S.A. 76-12a01, and amendments thereto, of the department of social and rehabilitation services; (B) in any application for admission, or for an order of reinstatement, to the practice of law in this state; (C) to aid in determining the petitioner's qualifications for employment with the Kansas lottery or for work in sensitive areas within the Kansas lottery as deemed appropriate by the executive director of the Kansas lottery; (D) to aid in determining the petitioner's qualifications for executive director of the Kansas racing commission, for employment with the commission or for work in sensitive areas in parimutuel racing as deemed appropriate by the executive director of the commission, or to aid in determining qualifications for licensure or renewal of licensure by the commission; (E) upon application for a commercial driver's license under K.S.A. 8-2,125 through 82,142, and amendments thereto; (F) to aid in determining the petitioner's qualifications to be an employee of the state gaming agency; or (G) to aid in determining the petitioner's qualifications to be an employee of a tribal gaming commission or to hold a license issued pursuant to a tribal-state gaming compact; or (H) to aid in determining the petitioner's qualifications for a license to carry a concealed weapon pursuant to the personal and family protection act; (3) the court, in the order of expungement, may specify other circumstances under which the conviction is to be disclosed; and (4) the conviction may be disclosed in a subsequent prosecution for an offense which requires as an element of such offense a prior conviction of the type expunged. (f) Whenever a person is convicted of an ordinance violation, pleads guilty and pays a fine for such a violation, is placed on parole or probation or is granted a suspended sentence for such a violation, the person shall be informed of the ability to expunge the conviction. (g) Subject to the disclosures required pursuant to subsection (e), in any application for employment, license or other civil right or privilege, or any appearance as a witness, a person whose conviction of an offense has been expunged under this statute may state that such person has never been convicted of such offense. (h) Whenever the record of any conviction has been expunged under the provisions of this section or under the provisions of any other existing or former statute, the custodian of the records of arrest, conviction and incarceration relating to that crime shall not disclose the existence of such records, except when requested by: (1) The person whose record was expunged; March 6, 1997 375 (2) a criminal justice agency, private detective agency or a private patrol operator, and the request is accompanied by a statement that the request is being made in conjunction with an application for employment with such agency or operator by the person whose record has been expunged; (3) a court, upon a showing of a subsequent conviction of the person whose record has been expunged; (4) the secretary of social and rehabilitation services, or a designee of the secretary, for the purpose of obtaining information relating to employment in an institution, as defined in K.S.A. 76-12a01, and amendments thereto, of the department of social and rehabilitation services of any person whose record has been expunged; (5) a person entitled to such information pursuant to the terms of the expungement order; (6) a prosecuting attorney, and such request is accompanied by a statement that the request is being made in conjunction with a prosecution of an offense that requires a prior conviction as one of the elements of such offense; (7) the supreme court, the clerk or disciplinary administrator thereof, the state board for admission of attorneys or the state board for discipline of attorneys, and the request is accompanied by a statement that the request is being made in conjunction with an application for admission, or for an order of reinstatement, to the practice of law in this state by the person whose record has been expunged; (8) the Kansas lottery, and the request is accompanied by a statement that the request is being made to aid in determining qualifications for employment with the Kansas lottery or for work in sensitive areas within the Kansas lottery as deemed appropriate by the executive director of the Kansas lottery; (9) the governor or the Kansas racing commission, or a designee of the commission, and the request is accompanied by a statement that the request is being made to aid in determining qualifications for executive director of the commission, for employment with the commission, for work in sensitive areas in parimutuel racing as deemed appropriate by the executive director of the commission or for licensure, renewal of licensure or continued licensure by the commission; or (10) the state gaming agency, and the request is accompanied by a statement that the request is being made to aid in determining qualifications: (A) To be an employee of the state gaming agency; or (B) to be an employee of a tribal gaming commission or to hold a license issued pursuant to a tribal-state gaming compact; or (11) the Kansas bureau of investigation and the request is accompanied by a statement that the request is being made to aid in determining qualifications for a license to carry a concealed weapon pursuant to the personal and family protection act. Sec. 13. K.S.A. 1996 Supp. 21-4619 is hereby amended to read as follows: 21-4619. (a) Except as provided in subsections (b) and (c), any person convicted in this state of a traffic infraction, cigarette or tobacco infraction, misdemeanor or a class D or E felony, or for crimes committed on or after July 1, 1993, nondrug crimes ranked in severity levels 6 through 10 or any felony ranked in severity level 4 of the drug grid, may petition the convicting court for the expungement of such conviction if three or more years have elapsed since the person: (1) Satisfied the sentence imposed; or (2) was discharged from probation, a community correctional services program, parole, postrelease supervision, conditional release or a suspended sentence. (b) Except as provided in subsection (c), no person may petition for expungement until five or more years have elapsed since the person satisfied the sentence imposed or was discharged from probation, a community correctional services program, parole, postrelease supervision, conditional release or a suspended sentence, if such person was convicted of a class A, B or C felony, or for crimes committed on or after July 1, 1993, if convicted of an off-grid felony or any nondrug crime ranked in severity levels 1 through 5 or any felony ranked in severity levels 1 through 3 of the drug grid, or: (1) Vehicular homicide, as defined by K.S.A. 21-3405 and amendments thereto or as prohibited by any law of another state which is in substantial conformity with that statute; (2) a violation of K.S.A. 8-1567 and amendments thereto, or a violation of any law of another state, which declares to be unlawful the acts prohibited by that statute; 376 JOURNAL OF THE HOUSE (3) driving while the privilege to operate a motor vehicle on the public highways of this state has been canceled, suspended or revoked, as prohibited by K.S.A. 8-262 and amendments thereto or as prohibited by any law of another state which is in substantial conformity with that statute; (4) perjury resulting from a violation of K.S.A. 8-261a and amendments thereto or resulting from the violation of a law of another state which is in substantial conformity with that statute; (5) violating the provisions of the fifth clause of K.S.A. 8-142 and amendments thereto, relating to fraudulent applications or violating the provisions of a law of another state which is in substantial conformity with that statute; (6) any crime punishable as a felony wherein a motor vehicle was used in the perpetration of such crime; (7) failing to stop at the scene of an accident and perform the duties required by K.S.A. 8-1602, 8-1603 or 8-1604, and amendments thereto, or required by a law of another state which is in substantial conformity with those statutes; (8) violating the provisions of K.S.A. 40-3104 and amendments thereto, relating to motor vehicle liability insurance coverage; or (9) a violation of K.S.A. 21-3405b, and amendments thereto. (c) There shall be no expungement of convictions for the following offenses or of convictions for an attempt to commit any of the following offenses: (1) Rape as defined in subsection (a)(2) of K.S.A. 21-3502 and amendments thereto; (2) indecent liberties with a child as defined in K.S.A. 21-3503 and amendments thereto; (3) aggravated indecent liberties with a child as defined in K.S.A. 21-3504 and amendments thereto; (4) criminal sodomy as defined in subsection (a)(2) or (a)(3) of K.S.A. 21-3505 and amendments thereto; (5) aggravated criminal sodomy as defined in K.S.A. 21-3506 and amendments thereto; (6) indecent solicitation of a child as defined in K.S.A. 21-3510 and amendments thereto; (7) aggravated indecent solicitation of a child as defined in K.S.A. 21-3511 and amendments thereto; (8) sexual exploitation of a child as defined in K.S.A. 21-3516 and amendments thereto; (9) aggravated incest as defined in K.S.A. 21-3603 and amendments thereto; (10) endangering a child as defined in K.S.A. 21-3608 and amendments thereto; (11) abuse of a child as defined in K.S.A. 21-3609 and amendments thereto; or (12) any conviction for any offense in effect at any time prior to the effective date of this act, that is comparable to any offense as provided in this subsection. (d) When a petition for expungement is filed, the court shall set a date for a hearing thereon and shall give notice thereof to the prosecuting attorney. The petition shall state: (1) The defendant's full name; (2) the full name of the defendant at the time of arrest and conviction, if different than the defendant's current name; (3) the defendant's sex, race and date of birth; (4) the crime for which the defendant was convicted; (5) the date of the defendant's conviction; and (6) the identity of the convicting court. There shall be no docket fee for filing a petition pursuant to this section. All petitions for expungement shall be docketed in the original criminal action. Any person who may have relevant information about the petitioner may testify at the hearing. The court may inquire into the background of the petitioner and shall have access to any reports or records relating to the petitioner that are on file with the secretary of corrections or the Kansas parole board. (e) At the hearing on the petition, the court shall order the petitioner's conviction expunged if the court finds that: (1) The petitioner has not been convicted of a felony in the past two years and no proceeding involving any such crime is presently pending or being instituted against the petitioner; (2) the circumstances and behavior of the petitioner warrant the expungement; and (3) the expungement is consistent with the public welfare. (f) When the court has ordered a conviction expunged, the order of expungement shall state the information required to be contained in the petition. The clerk of the court shall send a certified copy of the order of expungement to the Kansas bureau of investigation which shall notify the federal bureau of investigation, the secretary of corrections and any other criminal justice agency which may have a record of the conviction. After the order of March 6, 1997 377 expungement is entered, the petitioner shall be treated as not having been convicted of the crime, except that: (1) Upon conviction for any subsequent crime, the conviction that was expunged may be considered as a prior conviction in determining the sentence to be imposed; (2) the petitioner shall disclose that the conviction occurred if asked about previous convictions (A) in any application for employment as a detective with a private detective agency, as defined by K.S.A. 75-7b01 and amendments thereto; as security personnel with a private patrol operator, as defined by K.S.A. 75-7b01 and amendments thereto; with a criminal justice agency, as defined by K.S.A. 22-4701 and amendments thereto; or with an institution, as defined in K.S.A. 76-12a01 and amendments thereto, of the department of social and rehabilitation services; (B) in any application for admission, or for an order of reinstatement, to the practice of law in this state; (C) to aid in determining the petitioner's qualifications for employment with the Kansas lottery or for work in sensitive areas within the Kansas lottery as deemed appropriate by the executive director of the Kansas lottery; (D) to aid in determining the petitioner's qualifications for executive director of the Kansas racing commission, for employment with the commission or for work in sensitive areas in parimutuel racing as deemed appropriate by the executive director of the commission, or to aid in determining qualifications for licensure or renewal of licensure by the commission; or (E) upon application for a commercial driver's license under K.S.A. 8-2,125 through 82,142, and amendments thereto; or (F) to aid in determining the petitioner's qualifications for a license to carry a concealed weapon pursuant to the personal and family protection act; (3) the court, in the order of expungement, may specify other circumstances under which the conviction is to be disclosed; (4) the conviction may be disclosed in a subsequent prosecution for an offense which requires as an element of such offense a prior conviction of the type expunged; and (5) upon commitment to the custody of the secretary of corrections, any previously expunged record in the possession of the secretary of corrections may be reinstated and the expungement disregarded, and the record continued for the purpose of the new commitment. (g) Whenever a person is convicted of a crime, pleads guilty and pays a fine for a crime, is placed on parole, postrelease supervision or probation, is assigned to a community correctional services program, is granted a suspended sentence or is released on conditional release, the person shall be informed of the ability to expunge the conviction. (h) Subject to the disclosures required pursuant to subsection (f), in any application for employment, license or other civil right or privilege, or any appearance as a witness, a person whose conviction of a crime has been expunged under this statute may state that such person has never been convicted of such crime, but the expungement of a felony conviction does not relieve an individual of complying with any state or federal law relating to the use or possession of firearms by persons convicted of a felony. (i) Whenever the record of any conviction has been expunged under the provisions of this section or under the provisions of any other existing or former statute, the custodian of the records of arrest, conviction and incarceration relating to that crime shall not disclose the existence of such records, except when requested by: (1) The person whose record was expunged; (2) a criminal justice agency, private detective agency or a private patrol operator, and the request is accompanied by a statement that the request is being made in conjunction with an application for employment with such agency or operator by the person whose record has been expunged; (3) a court, upon a showing of a subsequent conviction of the person whose record has been expunged; (4) the secretary of social and rehabilitation services, or a designee of the secretary, for the purpose of obtaining information relating to employment in an institution, as defined in K.S.A. 76-12a01 and amendments thereto, of the department of social and rehabilitation services of any person whose record has been expunged; (5) a person entitled to such information pursuant to the terms of the expungement order; 378 JOURNAL OF THE HOUSE (6) a prosecuting attorney, and such request is accompanied by a statement that the request is being made in conjunction with a prosecution of an offense that requires a prior conviction as one of the elements of such offense; (7) the supreme court, the clerk or disciplinary administrator thereof, the state board for admission of attorneys or the state board for discipline of attorneys, and the request is accompanied by a statement that the request is being made in conjunction with an application for admission, or for an order of reinstatement, to the practice of law in this state by the person whose record has been expunged; (8) the Kansas lottery, and the request is accompanied by a statement that the request is being made to aid in determining qualifications for employment with the Kansas lottery or for work in sensitive areas within the Kansas lottery as deemed appropriate by the executive director of the Kansas lottery; (9) the governor or the Kansas racing commission, or a designee of the commission, and the request is accompanied by a statement that the request is being made to aid in determining qualifications for executive director of the commission, for employment with the commission, for work in sensitive areas in parimutuel racing as deemed appropriate by the executive director of the commission or for licensure, renewal of licensure or continued licensure by the commission; or (10) the Kansas sentencing commission; or (11) the Kansas bureau of investigation and the request is accompanied by a statement that the request is being made to aid in determining qualifications for a license to carry a concealed weapon pursuant to the personal and family protection act.''; And by renumbering sections accordingly; On page 11, in line 1, by striking ``21-4201 is'' and inserting ``12-4516, 21-4201 and 214619 are''; On page 1, in the title, in line 16, by striking all preceding the period and inserting ``124516, 21-4201 and 21-4619 and repealing the existing sections''; 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 were introduced and read by title: HB 2511, An act relating to taxation; imposing an excise tax upon the privilege of transporting freight by railroad in this state, by Committee on Taxation. HB 2512, An act concerning the state library; relating to the state grants-in-aid to libraries act; amending K.S.A. 75-2558 and 75-2559 and K.S.A. 1996 Supp. 75-2534, 75-2556 and 75-2557 and repealing the existing sections, by Committee on Appropriations. HB 2513, An act concerning solid waste; amending K.S.A. 1996 Supp. 65-3407 and repealing the existing section, by Committee on Taxation. HB 2514, An act concerning school district finance; authorizing boards of education to adopt local option budgets; providing a procedure for authorization to increase such budgets; authorizing the imposition of school district retailers' sales taxes and school district income taxes for the purpose of financing such budgets; amending K.S.A. 1996 Supp. 72-6433 and repealing the existing section; also repealing K.S.A. 1996 Supp. 72-6433a, by Committee on Taxation. On motion of Rep. Jennison, the House adjourned until 10:00 a.m., Friday, March 7, 1997. CHARLENE SWANSON, Journal Clerk. JANET E. JONES, Chief Clerk. +--+ | | +--+