J o u r n a l o f t h e H o u s e FORTY-SIXTH DAY -------- HALL OF THE HOUSE OF REPRESENTATIVES TOPEKA, KAN., Wednesday, March 19, 1997, 11:00 a.m. The House met pursuant to adjournment with Speaker pro tem Wagle in the chair. The roll was called with 120 members present. Rep. Dean was excused on verified illness. Reps. Carmody, Mayans, McKechnie and Reinhardt were excused on excused absence by the Speaker. Present later: Rep. Carmody. Prayer by guest chaplain, Dr. Doug Morphis, Executive Director, Counseling and Mediation Center, Wichita, and guest of Rep. Welshimer: Dear God, Bless these men and women. They have been elected and called together to represent the needs and the desires of all Kansans. Grant this body the wisdom to see in each issue that seems to divide Kansans, the possibilities for healing and reconciliation and to work diligently toward this effort. Give each member clarity and perseverance in their respective position and yet allow each representative to understand the sincerity of the opposite point of view. Through their deliberations, may your will be clearly seen so that on each issue, the welfare of all people will be protected, the education of all children be assured, the support of all families be evident and the communal good be reconciled with the individual rights. So grant these good people your wisdom, guidance, protection and peace in all their deliberations, we pray in the Creator's name. Amen REFERENCE OF BILLS AND CONCURRENT RESOLUTIONS The following bills and resolutions were referred to committees as indicated: Judiciary: HR 6011. MESSAGES FROM THE SENATE The Senate accedes to the request of the House for a conference on HB 2110 and has appointed Senators Emert, Morris and Hensley as conferees on the part of the Senate. Also, the Senate nonconcurs in House amendments to SB 197, requests a conference and has appointed Senators Praeger, Salmans and Steineger as conferees on the part of the Senate. The Senate nonconcurs in House amendments to SB 201, requests a conference and has appointed Senators Praeger, Salmans and Steineger as conferees on the part of the Senate. INTRODUCTION OF ORIGINAL MOTIONS On motion of Rep. Jennison, the House acceded to the request of the Senate for a conference on SB 197. Speaker pro tem Wagle thereupon appointed Reps. Mayans, Morrison and Henry as conferees on the part of the House. On motion of Rep. Jennison, the House acceded to the request of the Senate for a conference on SB 201. March 19, 1997 451 Speaker pro tem Wagle thereupon appointed Reps. Mayans, Morrison and Henry as conferees on the part of the House. INTRODUCTION OF ORIGINAL MOTIONS On motion of Rep. Jennison, pursuant to House Rule 2306, HB 2272, 2160 were withdrawn from the calendar and rereferred to Committee on Appropriations. CONSENT CALENDAR Objection was made to SB 136 appearing on the Consent Calendar; the bill was placed on the calendar under the heading of General Orders. No objection was made to SB 49, 55, 57, 229 appearing on the Consent Calendar for the first day. No objection was made to SB 267 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 SB 267, An act concerning publication of documents in Kansas register; relating to duties of secretary of state; amending K.S.A. 75-431 and repealing the existing section, was considered on final action. On roll call, the vote was: Yeas 118; Nays 2; Present but not voting 0; Absent or not voting 5. Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Bradley, Burroughs, Campbell, Compton, Correll, Cox, Crow, Dahl, Dillon, Dreher, Edmonds, Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Garner, Geringer, Gilbert, Gilmore, Glasscock, Grant, Gregory, 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, Mays, McClure, McCreary, 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, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson. Nays: Freeborn, Toplikar. Present but not voting: None. Absent or not voting: Carmody, Dean, Mayans, McKechnie, Reinhardt. The bill passed. SB 169, An act relating to drivers' licenses and nondriver identification cards; required contents; amending K.S.A. 8-1329 and K.S.A. 1996 Supp. 8-243 and repealing the existing sections, was considered on final action. On roll call, the vote was: Yeas 107; Nays 13; Present but not voting 0; Absent or not voting 5. Yeas: Adkins, Alldritt, Allen, Ballard, Ballou, Beggs, Benlon, Boston, Bradley, Burroughs, Compton, Correll, Cox, Crow, Dillon, Dreher, Edmonds, Empson, Farmer, Findley, Flaharty, Flora, Flower, Franklin, Freeborn, Garner, Geringer, Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett, Helgerson, Henderson, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, Johnson, Johnston, Kejr, Kirk, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, J. Long, P. Long, Mason, Mays, McClure, McCreary, McKinney, Minor, Mollenkamp, Morrison, Myers, Nichols, O'Connor, O'Neal, Packer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, Ray, Reardon, Ruff, Samuelson, Sawyer, Schwartz, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wilk, Wilson. Nays: Aurand, Campbell, Dahl, Faber, Feuerborn, Klein, Lloyd, Neufeld, Osborne, Palmer, Shallenburger, Thimesch, Wempe. Present but not voting: None. Absent or not voting: Carmody, Dean, Mayans, McKechnie, Reinhardt. 452 JOURNAL OF THE HOUSE The bill passed. SB 232, An act concerning cities and counties; relating to planning and zoning; relating to the enforcement of codes and resolutions; amending K.S.A. 12-504, 12-505, 12-745, 12747, 12-752, 12-758, 19-101d, 58-2613 and 58-2614 and repealing the existing sections, was considered on final action. On roll call, the vote was: Yeas 76; Nays 44; Present but not voting 0; Absent or not voting 5. Yeas: Adkins, Allen, Aurand, Ballou, Benlon, Boston, Bradley, Campbell, Compton, Cox, Dahl, Edmonds, Empson, Farmer, Flower, Franklin, Freeborn, Geringer, Gilmore, Glasscock, Gregory, Hayzlett, Helgerson, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, Johnson, Kejr, Phil Kline, Phill Kline, Landwehr, Lane, P. Long, Mason, Mays, McCreary, Mollenkamp, Morrison, Myers, Neufeld, O'Connor, O'Neal, Osborne, Packer, Palmer, J. Peterson, Pottorff, Powell, Powers, Presta, Ray, Samuelson, Schwartz, Shallenburger, Shore, Shriver, Shultz, Sloan, Stone, Swenson, Tanner, Thimesch, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wilk, Wilson. Nays: Alldritt, Ballard, Beggs, Burroughs, Correll, Crow, Dillon, Dreher, Faber, Feuerborn, Findley, Flaharty, Flora, Garner, Gilbert, Grant, Haley, Henderson, Johnston, Kirk, Klein, Krehbiel, Kuether, Larkin, Lloyd, J. Long, McClure, McKinney, Minor, Nichols, Pauls, E. Peterson, Phelps, Reardon, Ruff, Sawyer, Sharp, Showalter, Spangler, Storm, Toelkes, Wells, Welshimer, Wempe. Present but not voting: None. Absent or not voting: Carmody, Dean, Mayans, McKechnie, Reinhardt. The bill passed, as amended. EXPLANATIONS OF VOTE Mr. Speaker: Although I agreed with most of SB 232 I voted in opposition because of the modification of the voting process. A majority of those commissioners present versus a majority of the commission will create questions of accountability and credibility of Planning and Zoning commissions throughout the state. Planning and zoning issues are often controversial in nature. We should not add to that controversy.--Eber Phelps Mr. Speaker: I vote NO on SB 232. As amended, this bill makes a substantial change to the statutes concerning annexation by cities. This bill allows one landowner to reverse a decision agreed upon by both a city governing body and the county governing body. This change has not been studied in committee or considered by the Senate. I vote NO on SB 232.--Marti Crow, Douglas Johnston, L. Candy Ruff, Vaughn L. Flora, Sue Storm, Annie Kuether, dixie Toelkes, Ruby Gilbert On motion of Rep. Jennison, the House went into Committee of the Whole, with Rep. Powell in the chair. COMMITTEE OF THE WHOLE On motion of Rep. Powell, Committee of the Whole report, as follows, was adopted: Recommended that committee report to SB 286 be adopted; also, on motion of Rep. Wagle be amended on page 1, in line 16, by striking ``This act'' and inserting ``Sections 1 to 8, inclusive, and amendments thereto''; in line 18, by striking ``this'' and inserting ``the patient protection''; On page 4, in line 23, by striking ``this'' and inserting ``the patient protection''; after line 23, by inserting the following: ``New Sec. 9. Sections 9 to 20, inclusive, and amendments thereto shall be known and may be cited as the woman's-right-to-know act. New Sec. 10. (a) The legislature of the state of Kansas finds that: (1) It is essential to the psychological and physical well-being of a woman considering an abortion that she receive complete and accurate information on her alternatives. (2) The knowledgeable exercise of a woman's decision to have an abortion depends on the extent to which the woman receives sufficient information to make an informed choice between two alternatives: Giving birth or having an abortion. March 19, 1997 453 (3) A large percentage of all abortions are performed in clinics devoted solely to providing abortions and family planning services. Most women who seek abortions at these facilities do not have any relationship with the physician who performs the abortion, before or after the procedure. They do not return to the facility for post-surgical care. In most instances, the woman's only actual contact with the physician occurs simultaneously with the abortion procedure, with little opportunity to receive counseling concerning her decision. (4) The decision to abort ``is an important, and often a stressful one, and it is desirable and imperative that it be made with full knowledge of its nature and consequences.'' Planned Parenthood v. Danforth, 428 U.S. 52, 67 (1976). (5) ``The medical, emotional, and psychological consequences of an abortion are serious and can be lasting. . . .'' H.L. v. Matheson, 450 U.S. 398, 411 (1981). (6) Abortion facilities or providers offer only limited and/or impersonal counseling opportunities. (7) Many abortion facilities or providers hire untrained and unprofessional ``counselors'' whose primary goal is to sell abortion services. (b) Based on the findings in subsection (a) of this section, it is the purpose of the woman's-right-to-know act to: (1) Ensure that every woman considering an abortion receive complete information on her alternatives and that every woman submitting to an abortion do so only after giving her voluntary and informed consent to the abortion procedure. (2) Protect unborn children from a woman's uninformed decision to have an abortion. (3) Reduce ``the risk that a woman may elect an abortion, only to discover later, with devastating psychological consequences, that her decision was not fully informed.'' Planned Parenthood v. Casey, 112 S.Ct. 2791, 2823 (1992). Sec. 11. K.S.A. 65-6701 is hereby amended to read as follows: 65-6701. As used in this act: (a) ``Abortion'' means the use of any means to intentionally terminate a pregnancy except for the purpose of causing a live birth. Abortion does not include: (1) The use of any drug or device that inhibits or prevents ovulation, fertilization or the implantation of an embryo; or (2) disposition of the product of in vitro fertilization prior to implantation. (b) ``Conception'' means the fusion of a human spermatozoon with a human ovum. (c) ``Counselor'' means a person who is: (1) Licensed to practice medicine and surgery; (2) licensed to practice psychology; (3) licensed to practice professional or practical nursing; (4) registered to practice professional counseling; (5) licensed as a social worker; (6) the holder of a master's or doctor's degree from an accredited graduate school of social work; (7) registered to practice marriage and family therapy; (8) a registered physician's assistant; or (9) a currently ordained member of the clergy or religious authority of any religious denomination or society. Counselor does not include the physician who performs or induces the abortion or a physician or other person who assists in performing or inducing the abortion.
(c)(d) ``Department'' means the department of health and environment. (e) ``Gestational age'' means the time that has elapsed since the first day of the woman's last menstrual period. (f) ``Medical emergency'' means that condition which, on the basis of the physician's good faith clinical judgment, so complicates the medical condition of a pregnant woman as to necessitate the immediate abortion of her pregnancy to overt her death or for which a delay will create serious risk of substantial and irreversible impairment of a major bodily function. (g) ``Minor'' means a person less than 18 years of age.(d)(h) ``Physician'' means a person licensed to practice medicine and surgery in this state.(e)(i) ``Pregnant'' or ``pregnancy'' means that female reproductive condition of having an unborn child in the mother's body. (j) ``Qualified person'' means an agent of the physician who is a psychologist, licensed social worker, registered professional counselor, registered nurse or physician. (k) ``Unborn child'' means the offspring of human beings from conception until birth. 454 JOURNAL OF THE HOUSE (l) ``Unemancipated minor'' means any minor who has never been: (1) Married; or (2) freed, by court order or otherwise, from the care, custody and control of the minor's parents.(f)(m) ``Viable'' means that stage of gestation when, in the best medical judgment of the attending physician, the fetus is capable of sustained survival outside the uterus without the application of extraordinary medical means. (n) ``Aggrieved party'' means any woman who obtains, seeks to obtain, or believes she has obtained, an abortion, and includes her personal representative. New Sec. 12. No abortion shall be performed or induced without the voluntary and informed consent of the woman upon whom the abortion is to be performed or induced. Except in the case of a medical emergency, consent to an abortion is voluntary and informed only if: (a) At least eight hours before the abortion the physician who is to perform the abortion or the referring physician has informed the woman, orally and in person, of: (1) The name of the physician who will perform the abortion; (2) a description of the proposed abortion method; (3) a description of risks related to the proposed abortion method, including risks to the woman's reproductive health and alternatives to the abortion that a reasonable patient would consider material to the decision of whether or not to undergo the abortion; (4) the probable gestational age of the unborn child at the time the abortion is to be performed, and if the unborn child is viable or has reached the gestational age of 24 weeks, that (A) the unborn child may be able to survive outside the womb; and (B) if the unborn child is born alive, the attending physician has the legal obligation to take all reasonable steps necessary to maintain the life and health of the child; (5) the probable anatomical and physiological characteristics of the unborn child at the time the abortion is to be performed; (6) the medical risks associated with carrying her child to term; and (7) any need for anti-Rh immune globulin therapy, if she is Rh negative, the likely consequences of refusing such therapy and the cost of the therapy. (b) At least eight hours before the abortion, the physician who is to perform the abortion, the referring physician or a qualified person has informed the woman, orally and in person, that: (1) Medical assistance benefits may be available for prenatal care, childbirth and neonatal care, and that more detailed information on the availability of such assistance is contained in the printed materials given to her and described in section 13 and amendments thereto; (2) the printed materials in section 13 and amendments thereto describe the unborn child and list agencies which offer alternatives to abortion; (3) the father of the unborn child is liable to assist in the support of her child, even in instances where he has offered to pay for the abortion except that in the case of rape this information may be omitted; and (4) the woman is free to withhold or withdraw her consent to the abortion at any time before or during the abortion without affecting her right to future care or treatment and without the loss of any state or federally-funded benefits to which she might otherwise be entitled. (c) The information in subsection (a) and subsection (b) of this section 12 is provided to the woman individually and in a private room to protect her privacy and maintain the confidentiality of her decision, to ensure that the information focuses on her individual circumstances and that she has an adequate opportunity to ask questions. (d) At least eight hours before the abortion, the woman is given a copy of the printed materials described in section 13 and amendments thereto. If the woman is unable to read the materials, they shall be read to her. If the woman asks questions concerning any of the information or materials, answers shall be provided to her in her own language. (e) The woman certifies in writing on a form provided by the department, prior to the abortion, that the information required to be provided under subsections (a), (b) and (d) has been provided. All physicians who perform abortions shall report the total number of certifications received monthly to the department. The department shall make the number of certifications received available on an annual basis. March 19, 1997 455 (f) Prior to the performance of the abortion, the physician who is to perform the abortion or the physician's agent receives a copy of the written certification prescribed by subsection (e) of this section. (g) The woman is not required to pay any amount for the abortion procedure until the eight-hour waiting period has expired. New Sec. 13. (a) The department shall cause to be published, within 30 days after the effective date of this act, and shall update on an annual basis, the following easily comprehensible printed materials: (1) Geographically indexed materials designed to inform the woman of public and private agencies and services available to assist a woman through pregnancy, upon childbirth and while her child is dependent, including but not limited to, adoption agencies. The materials shall include a comprehensive list of the agencies, a description of the services they offer and the telephone numbers and addresses of the agencies; and inform the woman about available medical assistance benefits for prenatal care, childbirth and neonatal care and about the support obligations of the father of a child who is born alive. The department shall ensure that the materials described in this section are comprehensive and do not directly or indirectly promote, exclude or discourage the use of any agency or service described in this section. The materials shall also contain a toll-free 24-hour a day telephone number which may be called to obtain, orally, such a list and description of agencies in the locality of the caller and of the services they offer. The materials shall state that it is unlawful for any individual to coerce a woman to undergo an abortion, that any physician who performs an abortion upon a woman without her informed consent may be liable to her for damages in a civil action at law and that the law permits adoptive parents to pay costs of prenatal care, childbirth and neonatal care. The materials shall include the following statement: ``There are many public and private agencies willing and able to help you to carry your child to term, and to assist you and your child after your child is born, whether you choose to keep your child or to place her or him for adoption. The State of Kansas strongly urges you to contact them before making a final decision about abortion. The law requires that your physician or the physician's agent give you the opportunity to call agencies like these before you undergo an abortion.'' (2) Materials that inform the pregnant woman of the probable anatomical and physiological characteristics of the unborn child at two-week gestational increments from fertilization to full term, including pictures or drawings representing the development of unborn children at two-week gestational increments, and any relevant information on the possibility of the unborn child's survival. Any such pictures or drawings shall contain the dimensions of the unborn child and shall be realistic. The materials shall be objective, nonjudgmental and designed to convey only accurate scientific information about the unborn child at the various gestational ages. The material shall also contain objective information describing the methods of abortion procedures commonly employed, the medical risks commonly associated with each such procedure and the medical risks associated with carrying a child to term. (3) A certification form to be used by physicians or their agents under subsection (e) of section 12 and amendments thereto, which will list all the items of information which are to be given to women by physicians or their agents under the woman's-right-to-know act. (b) The materials required under this section shall be printed in a typeface large enough to be clearly legible. The materials shall be made available in both English and Spanish language versions. (c) The materials required under this section shall be available at no cost from the department upon request and in appropriate number to any person, facility or hospital. New Sec. 14. Where a medical emergency compels the performance of an abortion, the physician shall inform the woman, before the abortion if possible, of the medical indications supporting the physician's judgment that an abortion is necessary to avert her death or to avert substantial and irreversible impairment of a major bodily function. New Sec. 15. (a) Any person who intentionally, knowingly or recklessly violates the woman's-right-to-know act is guilty of a class A person misdemeanor. 456 JOURNAL OF THE HOUSE (b) No physician shall be guilty of violating the woman's-right-to-know act if the physician can demonstrate, by a preponderance of the evidence, that the physician reasonably believed that furnishing the information would have resulted in a severely adverse effect on the physical or mental health of the pregnant woman. New Sec. 16. In addition to whatever remedies are available under the common or statutory law of this state, failure to comply with the requirements of the woman's-right-toknow act shall: (a) Create a civil cause of action: (1) If an intentional or negligent failure of a physician to comply with the provisions of the woman's-right-to-know act is proven by a preponderance of the evidence, the court shall award to the aggrieved party a civil penalty in an amount of not less than $1,000 and not more than $250,000. (2) If the aggrieved party prevails in whole or in part in any action under the woman'sright-to-know act, the court shall award to the aggrieved party reasonable attorney fees, expenses and costs, including those on appeal. (3) When requested, the court shall allow an aggrieved party to proceed using solely initials or a pseudonym and may close any proceedings in the case and enter other protective orders to preserve the privacy of the aggrieved party. (b) Provide a cause of action for recovery for the woman for the death of her unborn child, whether or not the unborn child was viable at the time the abortion was performed or was born alive. New Sec. 17. Any physician who complies with the provisions of this act shall not be held civilly liable to a patient for failure to obtain informed consent to the abortion. New Sec. 18. The provisions of this act are declared to be severable, and if any provision, word, phrase or clause of the act or the application thereof to any person shall be held invalid, such invalidity shall not affect the validity of the remaining portions of the woman's-right-to-know act. New Sec. 19. (a) Nothing in the woman's-right-to-know act shall be construed as creating or recognizing a right to abortion. (b) It is not the intention of the woman's-right-to-know act to make lawful an abortion that is currently unlawful. New Sec. 20. The legislature, by concurrent resolution, may appoint one or more of its members, who sponsored or cosponsored 1997 House Bill No. 2269 in such member's official capacity, to intervene as a matter of right in any case in which the constitutionality of this law is challenged. Sec. 21. K.S.A. 1996 Supp. 65-2836 is hereby amended to read as follows: 65-2836. A licensee's license may be revoked, suspended or limited, or the licensee may be publicly or privately censured, or an application for a license or for reinstatement of a license may be denied upon a finding of the existence of any of the following grounds: (a) The licensee has committed fraud or misrepresentation in applying for or securing an original, renewal or reinstated license. (b) The licensee has committed an act of unprofessional or dishonorable conduct or professional incompetency. (c) The licensee has been convicted of a felony or class A misdemeanor, whether or not related to the practice of the healing arts. (d) The licensee has used fraudulent or false advertisements. (e) The licensee is addicted to or has distributed intoxicating liquors or drugs for any other than lawful purposes. (f) The licensee has willfully or repeatedly violated this act, the pharmacy act of the state of Kansas or the uniform controlled substances act, or any rules and regulations adopted pursuant thereto, or any rules and regulations of the secretary of health and environment which are relevant to the practice of the healing arts. (g) The licensee has unlawfully invaded the field of practice of any branch of the healing arts in which the licensee is not licensed to practice. (h) The licensee has engaged in the practice of the healing arts under a false or assumed name, or the impersonation of another practitioner. The provisions of this subsection relating to an assumed name shall not apply to licensees practicing under a professional corporation March 19, 1997 457 or other legal entity duly authorized to provide such professional services in the state of Kansas. (i) The licensee has the inability to practice the branch of the healing arts for which the licensee is licensed with reasonable skill and safety to patients by reason of illness, alcoholism, excessive use of drugs, controlled substances, chemical or any other type of material or as a result of any mental or physical condition. In determining whether or not such inability exists, the board, upon reasonable suspicion of such inability, shall have authority to compel a licensee to submit to mental or physical examination or drug screen, or any combination thereof, by such persons as the board may designate. To determine whether reasonable suspicion of such inability exists, the investigative information shall be presented to the board as a whole, to a review committee of professional peers of the licensee established pursuant to K.S.A. 65-2840c and amendments thereto or to a committee consisting of the officers of the board elected pursuant to K.S.A. 65-2818 and amendments thereto and the executive director appointed pursuant to K.S.A. 65-2878 and amendments thereto, and the determination shall be made by a majority vote of the entity which reviewed the investigative information. Information submitted to the board as a whole or a review committee of peers or a committee of the officers and executive director of the board and all reports, findings and other records shall be confidential and not subject to discovery by or release to any person or entity. The licensee shall submit to the board a release of information authorizing the board to obtain a report of such examination or drug screen, or both. A person affected by this subsection shall be offered, at reasonable intervals, an opportunity to demonstrate that such person can resume the competent practice of the healing arts with reasonable skill and safety to patients. For the purpose of this subsection, every person licensed to practice the healing arts and who shall accept the privilege to practice the healing arts in this state by so practicing or by the making and filing of an annual renewal to practice the healing arts in this state shall be deemed to have consented to submit to a mental or physical examination or a drug screen, or any combination thereof, when directed in writing by the board and further to have waived all objections to the admissibility of the testimony, drug screen or examination report of the person conducting such examination or drug screen, or both, at any proceeding or hearing before the board on the ground that such testimony or examination or drug screen report constitutes a privileged communication. In any proceeding by the board pursuant to the provisions of this subsection, the record of such board proceedings involving the mental and physical examination or drug screen, or any combination thereof, shall not be used in any other administrative or judicial proceeding. (j) The licensee has had a license to practice the healing arts revoked, suspended or limited, has been censured or has had other disciplinary action taken, or an application for a license denied, by the proper licensing authority of another state, territory, District of Columbia, or other country, a certified copy of the record of the action of the other jurisdiction being conclusive evidence thereof. (k) The licensee has violated any lawful rule and regulation promulgated by the board or violated any lawful order or directive of the board previously entered by the board. (l) The licensee has failed to report or reveal the knowledge required to be reported or revealed under K.S.A. 65-28,122 and amendments thereto. (m) The licensee, if licensed to practice medicine and surgery, has failed to inform a patient suffering from any form of abnormality of the breast tissue for which surgery is a recommended form of treatment, of alternative methods of treatment specified in the standardized summary supplied by the board. The standardized summary shall be given to each patient specified herein as soon as practicable and medically indicated following diagnosis, and this shall constitute compliance with the requirements of this subsection. The board shall develop and distribute to persons licensed to practice medicine and surgery a standardized summary of the alternative methods of treatment known to the board at the time of distribution of the standardized summary, including surgical, radiological or chemotherapeutic treatments or combinations of treatments and the risks associated with each of these methods. Nothing in this subsection shall be construed or operate to empower or authorize the board to restrict in any manner the right of a person licensed to practice medicine and surgery to recommend a method of treatment or to restrict in any manner a 458 JOURNAL OF THE HOUSE patient's right to select a method of treatment. The standardized summary shall not be construed as a recommendation by the board of any method of treatment. The preceding sentence or words having the same meaning shall be printed as a part of the standardized summary. The provisions of this subsection shall not be effective until the standardized written summary provided for in this subsection is developed and printed and made available by the board to persons licensed by the board to practice medicine and surgery. (n) The licensee has cheated on or attempted to subvert the validity of the examination for a license. (o) The licensee has been found to be mentally ill, disabled, not guilty by reason of insanity, not guilty because the licensee suffers from a mental disease or defect or incompetent to stand trial by a court of competent jurisdiction. (p) The licensee has prescribed, sold, administered, distributed or given a controlled substance to any person for other than medically accepted or lawful purposes. (q) The licensee has violated a federal law or regulation relating to controlled substances. (r) The licensee has failed to furnish the board, or its investigators or representatives, any information legally requested by the board. (s) Sanctions or disciplinary actions have been taken against the licensee by a peer review committee, health care facility, a governmental agency or department or a professional association or society for acts or conduct similar to acts or conduct which would constitute grounds for disciplinary action under this section. (t) The licensee has failed to report to the board any adverse action taken against the licensee by another state or licensing jurisdiction, a peer review body, a health care facility, a professional association or society, a governmental agency, by a law enforcement agency or a court for acts or conduct similar to acts or conduct which would constitute grounds for disciplinary action under this section. (u) The licensee has surrendered a license or authorization to practice the healing arts in another state or jurisdiction, has surrendered the authority to utilize controlled substances issued by any state or federal agency, has agreed to a limitation to or restriction of privileges at any medical care facility or has surrendered the licensee's membership on any professional staff or in any professional association or society while under investigation for acts or conduct similar to acts or conduct which would constitute grounds for disciplinary action under this section. (v) The licensee has failed to report to the board surrender of the licensee's license or authorization to practice the healing arts in another state or jurisdiction or surrender of the licensee's membership on any professional staff or in any professional association or society while under investigation for acts or conduct similar to acts or conduct which would constitute grounds for disciplinary action under this section. (w) The licensee has an adverse judgment, award or settlement against the licensee resulting from a medical liability claim related to acts or conduct similar to acts or conduct which would constitute grounds for disciplinary action under this section. (x) The licensee has failed to report to the board any adverse judgment, settlement or award against the licensee resulting from a medical malpractice liability claim related to acts or conduct similar to acts or conduct which would constitute grounds for disciplinary action under this section. (y) The licensee has failed to maintain a policy of professional liability insurance as required by K.S.A. 40-3402 or 40-3403a and amendments thereto. (z) The licensee has failed to pay the annual premium surcharge as required by K.S.A. 40-3404 and amendments thereto. (aa) The licensee has knowingly submitted any misleading, deceptive, untrue or fraudulent representation on a claim form, bill or statement. (bb) The licensee as the responsible physician for a physician's assistant has failed to adequately direct and supervise the physician's assistant in accordance with K.S.A. 65-2896 to 65-2897a, inclusive, and amendments thereto, or rules and regulations adopted under such statutes. (cc) The licensee has failed to comply with the woman's-right-to-know act. March 19, 1997 459 Sec. 22. K.S.A. 65-6701 and 65-6706 and K.S.A. 1996 Supp. 65-2836 are hereby repealed.''; And by renumbering the last section accordingly; On page 1, in the title, in line 12, after ``ACT'' by inserting ``concerning patient protection;''; in line 13, before the period, by inserting ``enacting the woman's-right-to-know act; establishing requirements for informed consent relating to abortions; providing penalties for violations; amending K.S.A. 65-6701 and K.S.A. 1996 Supp. 65-2836 and repealing the existing sections; also repealing K.S.A. 65-6706''; and SB 286 be passed as amended. Committee report to SB 333 be adopted; also, roll call was demanded on motion of Rep. Helgerson to amend on page 5, after line 23, by inserting: ``New Sec. 5. On and after January 1, 1999, the state corporation commission shall implement a rate structure for Western Resources electric public utility under which no retail electric customer of the utility shall be charged a rate higher than the average rate charged by the utility on January 1, 1997, to customers of the utility in the same customer class as such customer, except in no case is the rate for any customer to increase.''; By renumbering the remaining sections accordingly; In the title, in line 14, before ``amending'' by inserting ``relating to rate structures of certain electric public utilities;''; On roll call, the vote was: Yeas 27; Nays 86; Present but not voting 1; Absent or not voting 11. Yeas: Compton, Correll, Farmer, Flaharty, Gilbert, Grant, Gregory, Helgerson, Johnston, Kirk, Klein, Landwehr, McCreary, E. Peterson, Powers, Reardon, Ruff, Sawyer, Sharp, Shriver, Spangler, Swenson, Thimesch, Vining, Wagle, Wells, Welshimer. Nays: Allen, Aurand, Ballard, Beggs, Boston, Bradley, Burroughs, Carmody, Cox, Crow, Dahl, Dillon, Dreher, Edmonds, Empson, Faber, Feuerborn, Findley, Flora, Flower, Freeborn, Geringer, Gilmore, Glasscock, Haley, Hayzlett, Henderson, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, Johnson, Kejr, Phil Kline, Krehbiel, Kuether, Lane, Larkin, Lloyd, J. Long, P. Long, Mason, Mays, McClure, McKinney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Osborne, Packer, Palmer, Pauls, J. Peterson, Phelps, Pottorff, Powell, Presta, Ray, Samuelson, Schwartz, Shallenburger, Shore, Showalter, Shultz, Sloan, Stone, Storm, Tanner, Toelkes, Tomlinson, Toplikar, Vickrey, Weber, Weiland, Wempe, Wilk, Wilson. Present but not voting: Franklin. Absent or not voting: Adkins, Alldritt, Ballou, Benlon, Campbell, Dean, Garner, Phill Kline, Mayans, McKechnie, Reinhardt. The motion of Rep. Helgerson did not prevail, and SB 333 be passed as amended. Committee report to SB 166 be adopted; also, on motion of Rep. Benlon be amended on page 3, by striking all of lines 19 through 22; And by renumbering sections accordingly; and SB 166 be passed as amended. REPORTS OF STANDING COMMITTEES The Committee on Appropriations recommends HB 2166 be amended on page 4, by striking all in lines 19 through 28; On page 9, in line 5, by striking ``$9,200,000'' and inserting in lieu thereof ``$10,500,000''; after line 41, by inserting the following: Ackert hall addition--special revenue fundNo limit Provided, That Kansas state university may make expenditures from the Ackert hall addition--special revenue fund for the capital improvement project to construct an addition to Ackert hall in addition to the expenditure of other moneys appropriated therefor: Provided, however, That expenditures from this fund for such capital improvement project shall not exceed $1,500,000 plus all amounts required for costs of any bond issuance, costs of interest on any bond issued or obtained for such capital improvement project and any required reserves for payment of principal and interest on any bond: Provided further, That such capital improvement project is hereby approved for Kansas state university for the purposes of subsection (b) of K.S.A. 74-8905 and amendments thereto and the authorization 460 JOURNAL OF THE HOUSE of the issuance of bonds by the Kansas development finance authority in accordance with that statute: And provided further, That all moneys received from the issuance of any such bonds shall be deposited in the state treasury to the credit of this fund. Student and staff parking garage--special revenue fundNo limit Provided, That Kansas state university may make expenditures from the student and staff parking garage--special revenue fund for the capital improvement project to construct a parking garage in addition to the expenditure of other moneys appropriated therefor: Provided, however, That expenditures from this fund for such capital improvement project shall not exceed $10,500,000 plus all amounts required for costs of any bond issuance, costs of interest on any bond issued or obtained for such capital improvement project and any required reserves for payment of principal and interest on any bond: Provided further, That such capital improvement project is hereby approved for Kansas state university for the purposes of subsection (b) of K.S.A. 74-8905 and amendments thereto and the authorization of the issuance of bonds by the Kansas development finance authority in accordance with that statute: And provided further, That all moneys received from the issuance of any such bonds shall be deposited in the state treasury to the credit of this fund.''; On page 10, after line 14, by inserting the following: ``Biological and agricultural engineering research storage buildingNo limit''; Also on page 10, after line 20, by inserting the following: ``(f) In addition to the other purposes for which expenditures may be made by the above agency from the student union renovation and expansion fund for the fiscal year ending June 30, 1998, expenditures may be made by the above agency from the student union renovation and expansion fund during fiscal year 1998 for costs associated with roof repair on an existing portion of the student union building. (g) In addition to the other purposes for which expenditures may be made by the above agency from the sponsored research overhead fund for the fiscal year ending June 30, 1998, expenditures may be made by the above agency from the sponsored research overhead fund for the following capital improvement projects, subject to the expenditure limitation prescribed therefor: Accelerated testing laboratory storage/equipment shedNo limit Salina national gas machinery laboratoryNo limit''; Also on page 10, after line 42, by inserting the following: ``Warehouse expansion--department of agronomy buildingNo limit Scandia experiment field office facilityNo limit''; On page 12, by striking all in lines 18 and 19; by striking all in lines 26 through 30; by striking all in lines 36 and 37; On page 13, by striking all in line 4; On page 14, after line 23, by inserting the following: ``Regents center principal and interest payment account KDFA D bonds, 1990 fundNo limit Energy conservation revenue bond KDFA A bonds, 1996 fundNo limit Templin hall renovation principal and interest payment account KDFA E bonds, 1996 fundNo limit Templin hall renovation bond proceeds project account KDFA E bonds, 1996 fundNo limit Templin hall renovation university proceeds project account KDFA E bonds, 1996 fundNo limit Templin hall renovation cost of issuance KDFA E bonds, 1996 fundNo limit Templin hall renovation bond reserve KDFA E bonds, 1996 fundNo limit Watkins health center addition principal and interest payment account KDFA D bonds, 1995 fundNo limit Watkins health center addition project account KDFA D bonds, 1995 fundNo limit March 19, 1997 461 Watkins health center addition university proceeds project account KDFA D bonds, 1995 fundNo limit Watkins health center addition cost of issuance KDFA D bonds, 1995 fundNo limit Watkins health center addition bond reserve KDFA D bonds, 1995 fundNo limit Regents R&R project KDFA K bonds, 1996 fundNo limit Construct parking garage no. 2--special revenue fundNo limit Provided, That the university of Kansas may make expenditures from the construct parking garage no. 2--special revenue fund for the capital improvement project to construct a parking garage in addition to the expenditure of other moneys appropriated therefor: Provided, however, That expenditures from this fund for such capital improvement project shall not exceed $10,025,000 plus all amounts required for costs of any bond issuance, costs of interest on any bond issued or obtained for such capital improvement project and any required reserves for payment of principal and interest on any bond: Provided further, That such capital improvement project is hereby approved for the university of Kansas for the purposes of subsection (b) of K.S.A. 74-8905 and amendments thereto and the authorization of the issuance of bonds by the Kansas development finance authority in accordance with that statute: And provided further, That all moneys received from the issuance of any such bonds shall be deposited in the state treasury to the credit of this fund. Edwards campus facility expansion--special revenue fundNo limit Provided, That the university of Kansas may make expenditures from the Edwards campus facility expansion--special revenue fund for the capital improvement project to expand facilities on the Edwards campus in addition to the expenditure of other moneys appropriated therefor: Provided, however, That expenditures from this fund for such capital improvement project shall not exceed $13,230,000 plus all amounts required for costs of any bond issuance, costs of interest on any bond issued or obtained for such capital improvement project and any required reserves for payment of principal and interest on any bond: Provided further, That such capital improvement project is hereby approved for the university of Kansas for the purposes of subsection (b) of K.S.A. 74-8905 and amendments thereto and the authorization of the issuance of bonds by the Kansas development finance authority in accordance with that statute: And provided further, That all moneys received from the issuance of any such bonds shall be deposited in the state treasury to the credit of this fund. Construct child care facility--special revenue fundNo limit Provided, That the university of Kansas may make expenditures from the construct child care facility--special revenue fund for the capital improvement project to construct a child care facility in addition to the expenditure of other moneys appropriated therefor: Provided, however, That expenditures from this fund for such capital improvement project shall not exceed $4,470,000 plus all amounts required for costs of any bond issuance, costs of interest on any bond issued or obtained for such capital improvement project and any required reserves for payment of principal and interest on any bond: Provided further, That such capital improvement project is hereby approved for the university of Kansas for the purposes of subsection (b) of K.S.A. 74-8905 and amendments thereto and the authorization of the issuance of bonds by the Kansas development finance authority in accordance with that statute: And provided further, That all moneys received from the issuance of any such bonds shall be deposited in the state treasury to the credit of this fund. Athletic facilities enhancements--special revenue fundNo limit Provided, That the university of Kansas may make expenditures from the athletic facilities enhancements--special revenue fund for the capital improvement project to renovate athletic facilities in addition to the expenditure of other moneys appropriated therefor: Provided, however, That expenditures from this fund for such capital improvement project shall not exceed $32,391,210 plus all amounts required for costs of any bond issuance, costs of interest on any bond issued or obtained for such capital improvement project and any required reserves for payment of principal and interest on any bond: Provided further, That 462 JOURNAL OF THE HOUSE such capital improvement project is hereby approved for the university of Kansas for the purposes of subsection (b) of K.S.A. 74-8905 and amendments thereto and the authorization of the issuance of bonds by the Kansas development finance authority in accordance with that statute: And provided further, That all moneys received from the issuance of any such bonds shall be deposited in the state treasury to the credit of this fund. (c) During the fiscal year ending June 30, 1998, the university of Kansas is hereby authorized to make expenditures to raze building #17 annex.''; Also on page 14, after line 42, by inserting the following: ``Center for health in aging--special revenue fundNo limit Provided, That the university of Kansas medical center may make expenditures from the center for health in aging--special revenue fund for the capital improvement project to construct the center for health in aging in addition to the expenditure of other moneys appropriated therefor: Provided, however, That expenditures from this fund for such capital improvement project shall not exceed $8,000,000 plus all amounts required for costs of any bond issuance, costs of interest on any bond issued or obtained for such capital improvement project and any required reserves for payment of principal and interest on any bond: Provided further, That the above agency may transfer moneys for fiscal year 1998 from appropriate accounts of the sponsored research overhead fund to this fund for such capital improvement project or for debt service for such capital improvement project: And provided further, That such capital improvement project is hereby approved for the university of Kansas medical center for the purposes of subsection (b) of K.S.A. 74-8905 and amendments thereto and the authorization of the issuance of bonds by the Kansas development finance authority in accordance with that statute: And provided further, That all moneys received from the issuance of any such bonds shall be deposited in the state treasury to the credit of this fund. Research support facility addition--special revenue fundNo limit Provided, That the university of Kansas medical center may make expenditures from the research support facility addition--special revenue fund for the capital improvement project to construct an addition to the research support facility in addition to the expenditure of other moneys appropriated therefor: Provided, however, That expenditures from this fund for such capital improvement project shall not exceed $3,250,000 plus all amounts required for costs of any bond issuance, costs of interest on any bond issued or obtained for such capital improvement project and any required reserves for payment of principal and interest on any bond: Provided further, That the above agency may transfer moneys for fiscal year 1998 from appropriate accounts of the sponsored research overhead fund to this fund for such capital improvement project or for debt service for such capital improvement project: And provided further, That such capital improvement project is hereby approved for the university of Kansas medical center for the purposes of subsection (b) of K.S.A. 74-8905 and amendments thereto and the authorization of the issuance of bonds by the Kansas development finance authority in accordance with that statute: And provided further, That all moneys received from the issuance of any such bonds shall be deposited in the state treasury to the credit of this fund.''; On page 15, after line 3, by inserting the following: ``(c) During the fiscal year ending June 30, 1998, the university of Kansas medical center is hereby authorized to make expenditures to raze portions of building no. 13 (the Eleanor Taylor administration building). (d) During the fiscal year ending June 30, 1998, the university of Kansas medical center is hereby authorized to make expenditures to raze building no. 4 (Hinch hall).''; On page 16, after line 7, by inserting the following: ``(c) For the fiscal years ending June 30, 1997, and June 30, 1998, the department of human resources is hereby authorized to make expenditures for the purpose of selling the following described real property: South 10 feet of Lot thirty (30), all of lots thirty-two (32), thirty-four (34) and thirty-six (36) and Block 60, City of Ottawa, Franklin County, Kansas.''; On page 18, in line 18, by striking ``$300,000'' and inserting in lieu thereof ``$0''; On page 19, after line 11, by inserting the following: March 19, 1997 463 ``Kansas river recreation$55,833''; On page 20, by striking all in line 14; by striking all in lines 34 through 43; And by relettering subsections accordingly; and the bill be passed as amended. The Committee on Education recommends SB 222 be passed. The Committee on Education recommends SB 65, as amended by Senate Committee, be amended on page 1, in line 17, by striking ``21'' and inserting ``19''; in line 18, after ``age'', by inserting ``and who is not currently enrolled in the school district''; in line 21, by striking ``must provide'' and inserting ``may offer''; also in line 21, by striking ``with''; in line 22, by striking ``with''; and the bill be passed as amended. The Committee on Financial Institutions recommends SB 27 be passed. The Committee on Financial Institutions recommends Substitute for SB 185 be passesd 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 Financial Institutions recommends SB 32, as amended by Senate Committee, be amended on page 2, in line 10, by striking all following the comma; in line 11, by striking all preceding ``subject''; in line 13, by striking the colon and inserting ``; or (d) a manufactured home or a mobile home (except a manufactured home or mobile home held as inventory for sale), subject to a statute of this state which requires indication on a certificate of title or a duplicate thereof of such security interest in such manufactured home or mobile home:''; and the bill be passed as amended. The Committee on Financial Institutions recommends SB 132 be amended on page 1, following line 12, by inserting the following: ``New Section 1. (a) As used in this section: (1) ``Accredited school'' means any school operated by a public school district organized under the laws of this state and any nonpublic school accredited by the state board of education. (2) ``Board'' means the board of education of a school district and the governing authority of an accredited nonpublic school. (b) In order to encourage savings among school children, a bank may enter into a written agreement with a board of an accredited school to establish a school savings deposit program. Such program shall be limited to the opening of accounts and the periodic collection, by bank employees or school personnel, of deposits from school children for deposit in such bank accounts. No such program shall be implemented until the executed agreement and any information deemed necessary has been submitted to the Kansas state bank commissioner. If the commissioner determines the agreement and proposed program primarily promote educational objectives and the purpose of this section, the commissioner shall provide the bank with written approval to implement the program. Any bank participating in such school savings deposit program shall have its main or branch office located in the same county as the participating school, or if no bank in the county wants to participate in such program, then banks in any contiguous county may participate. The school savings deposit program may be conducted in any elementary or secondary school. Sec. 2. K.S.A. 1996 Supp. 9-1101 is hereby amended to read as follows: 9-1101. Any bank hereby is authorized to exercise by its board of directors or duly authorized officers or agents, subject to law, all such powers, including incidental powers, as shall be necessary to carry on the business of banking, and: (1) To receive deposits and to pay interest thereon at rates which need not be uniform. The state bank commissioner, with approval of the state banking board, may by regulations of general application fix maximum rates of interest to be paid on deposit accounts other than accounts for public moneys; (2) to buy and sell exchange, gold, silver, foreign coin, bullion, commercial paper, bills of exchange, notes and bonds; (3) to buy and sell bonds, securities, or other evidences of indebtedness of the United States of America or those fully guaranteed, directly or indirectly, by it, and general obligation bonds of the state of Kansas or any municipality or quasi-municipality thereof, and of other states, and of municipalities or quasi-municipalities in other states of the United States of America. No bank shall invest an amount in excess of 15% of its capital stock paid 464 JOURNAL OF THE HOUSE in and unimpaired and the unimpaired surplus fund of such bank in bonds, securities or other evidences of indebtedness of any municipality or quasi-municipality of any other state or states of the United States of America: (a) If and when the direct and overlapping indebtedness of such municipality or quasi-municipality is in excess of 10% of its assessed valuation, excluding therefrom all valuations on intangibles and homestead exemption valuation; (b) or if any bond, security, or evidence of indebtedness of any such municipality or quasi-municipality has been in default in the payment of principal or interest within 10 years prior to the time that any bank acquires any such bonds, security or evidence of indebtedness; (4) to make all types of loans, including loans on real estate, subject to the loan limitations contained in this act. Every real estate loan shall be secured by a mortgage or other instrument constituting a lien, or the full equivalent thereof, upon the real estate securing the loan, according to any lawful or well recognized practice, which is best suited to the transaction. The mortgage may secure future advances. The lien of such mortgage shall attach upon its execution and have priority from time of recording as to all advances made thereunder until such mortgage is released of record. The lien of such mortgage shall not exceed at any one time the maximum amount stated in the mortgage; (5) to discount and negotiate bills of exchange, negotiable notes and notes not negotiable; (6) to buy and sell investment securities which are evidences of indebtedness. The buying and selling of investment securities shall be limited to buying and selling without recourse marketable obligations evidencing indebtedness of any person, copartnership, association, corporation, or state or federal agency, including revenue bonds issued pursuant to K.S.A. 76-6a15, and amendments thereto, or the state armory board in the form of bonds, notes or debentures or both, commonly known as investment securities, under such further definition of the term ``investment securities'' as prescribed by the board, but the total amount of such investment securities of any one obligor or maker held by such bank shall at no time exceed 15% of the capital stock paid in and unimpaired and the unimpaired surplus fund of such bank except that this limit shall not apply to obligations of the United States government or any agency thereof. If the obligor is a state agency including any agency issuing revenue bonds pursuant to K.S.A. 76-6a15, and amendments thereto, or the state armory board, the total amount of such investment securities shall at no time exceed 25% of the capital stock paid in and unimpaired and the unimpaired surplus fund of such bank; (7) to subscribe to, buy and own such stock of the federal national mortgage association as required by title 3, section 303 of the federal act known as the national housing act as amended by section 201 of public law No. 560, of the United States (68 Stat. 613-615), known as the housing act of 1954, or amendments thereto; (8) to subscribe to, buy and own stock in one or more small business investment companies in Kansas as otherwise authorized by federal law, except that in no event shall any bank acquire shares in any small business investment company if, upon the making of that acquisition the aggregate amount of shares in small business investment companies then held by the bank would exceed 5% of its capital and surplus. Nothing in this act contained shall prohibit any bank from holding and disposing of such real estate and other property as it may acquire in the collection of its assets; (9) to subscribe to, buy and own stock in any agricultural credit corporation or livestock loan company, or its affiliate, organized pursuant to the provisions of the laws of the United States providing for the information and operation of agricultural credit corporations and livestock loan companies, in an amount not exceeding either the undivided profits or 10% of the capital stock and surplus and undivided profits from such bank, whichever is greater; (10) to subscribe to, buy and own stock in minbanc capital corporation, a company formed for the purpose of providing capital to minority-owned banks. No bank's investment in such stock shall exceed 2% of its capital and surplus; (11) to buy, hold, and sell any type of investment securities not enumerated in this section with approval of the commissioner and upon such conditions and under such regulations as are prescribed by the state banking board; (12) to act as escrow agent; March 19, 1997 465 (13) to subscribe to, acquire, hold and dispose of stock of a corporation having as its purpose the acquisition, holding and disposition of loans secured by real estate mortgages, and to acquire, hold and dispose of the debentures and capital notes of such corporation. No bank's investment in such stock, debentures and capital notes shall exceed 2% of its capital stock, surplus and undivided profits and such investment shall be carried on the books of the bank as directed by the commissioner; (14) to purchase and sell securities and stock without recourse solely upon the order, and for the account, of customers; (15) to subscribe to, acquire, hold and dispose of any class of stock, debentures and capital notes of MABSCO agricultural services, inc. or any similar corporation having as its purpose the acquisition, holding and disposition of agricultural loans originated by Kansas banks. No bank's investment in such stock, debentures and capital notes shall exceed 2% of its capital stock, surplus and undivided profits. Such investment shall be carried on the books of the bank as directed by the commissioner; (16) to buy, hold and sell mortgages, stock, obligations and other securities which are issued or guaranteed by the federal home loan mortgage corporation under sections 305 and 306 of the federal act known as the federal home loan mortgage corporation act (P.L. 91-351); (17) to buy, hold and sell obligations or other instruments or securities, including stock, issued or guaranteed by the student loan marketing association created by (P.L. 92-318) of the United States; (18) to engage in financial future contracts on United States government and agency securities subject to such rules and regulations as the state bank commissioner may prescribe pursuant to K.S.A. 9-1713, and amendments thereto, to promote safe and sound banking practices; (19) to subscribe to, buy and own stock in a state or federally chartered bankers' bank or a one bank holding company which owns or controls such a bankers' bank, except no bank's investment in such stock shall exceed 10% of its capital stock, surplus and undivided profits; (20) subject to such rules and regulations as the state bank commissioner may adopt pursuant to K.S.A. 9-1713, and amendments thereto, to promote safe and sound banking practices, upon recorded prior approval by the board of directors of the initial investment in a specific company and pursuant to an investment policy approved by the board of directors which specifically provides for such investments to buy, hold and sell shares of an open-end investment company registered with the federal securities and exchange commission under the federal investment company act of 1940 and the federal securities act of 1933 and of a privately offered company sponsored by an affiliated commercial bank, the shares of which are purchased and sold at par and the assets of which consist solely of securities which may be purchased by the bank for its own account. Such shares may be purchased without limit if the assets of the company consist solely of and are limited to obligations that are eligible for purchase by the bank without limit. If the assets of the company include securities which may be purchased by the bank subject to limitation, such shares may be purchased subject to the limitation applicable to purchase by the bank of such securities; (21) subject to the prior approval of the state bank commissioner and the state banking board and subject to such rules and regulations as are adopted by the state bank commissioner pursuant to K.S.A. 9-1713, and amendments thereto, to promote safe and sound banking practices, a bank may establish a subsidiary which engages in the following securities activities: (a) selling or distributing stocks, bonds, debentures, notes, mutual funds and other securities, (b) issuing and underwriting municipal bonds, (c) organizing, sponsoring and operating mutual funds, (d) acting as a securities broker-dealer; (22) to subscribe to, acquire, hold and dispose of stock of any class of the federal agricultural mortgage corporation, a corporation having as its purpose the acquisition, holding and disposition of loans secured by agricultural real estate mortgages. No bank's investment in such corporation shall exceed 5% of its capital stock, surplus and undivided profits and such investment shall be carried on the books of the bank as directed by the commissioner; 466 JOURNAL OF THE HOUSE (23) to subscribe to, buy and own stock in an insurance company incorporated prior to 1910, under the laws of Kansas, with corporate headquarters in this state, which only provides insurance to financial institutions. The investment in such stock shall not exceed 2% of the bank's capital stock, surplus and undivided profits; (24) to purchase and hold an interest in life insurance policies on the life of its executive officers and directors, and to purchase life insurance policies for the sole purpose of providing employee deferred compensation and benefit plans subject to the limitations listed herein. If the bank has the authority to direct the investments of the cash surrender value of the policy, those investments shall be limited solely to assets which may be directly purchased by the bank for its own account. The limitations set forth in paragraphs (a) and (b) of this subsection do not apply to any such life insurance policies in place before July 1, 1993. Funding for the payment of employee compensation and benefit plans as well as the benefits derived may be made or split in a joint manner between the bank, employee or bank holding company as in ``split dollar'' or other insurance plans: (a) Life insurance purchased and held on the life of executive officers and directors are subject to the following limitations: (i) The cash surrender value of any life insurance policy on an executive officer or director underwritten by any one life insurance company cannot at any time exceed 15% of the bank's capital stock, surplus, undivided profits, loan loss reserve, capital notes and debentures and reserve for contingency, unless the bank has obtained the prior approval of the state bank commissioner; (ii) the cash surrender value of life insurance policies on executive officers or directors, in the aggregate from all companies, cannot at any time exceed 25% of the bank's capital stock, surplus, undivided profits, loan loss reserve, capital notes and debentures and reserve for contingency, unless the bank has obtained the prior approval of the state bank commissioner; (iii) the authority to hold life insurance on any executive officer ceases if the executive officer is no longer employed by the bank or no longer meets the definition of an executive officer; (iv) the authority to hold life insurance on a director ceases when that director is no longer a member of the board of directors; (v) the bank's board of directors must approve and document the purchase of any life insurance, including the reasonableness of such purchase; and (vi) except as part of a reasonable compensation or benefit plan, a bank is not authorized to purchase life insurance as an estate management device for the benefit of officers, directors or employees who are also controlling shareholders of the bank. (b) Life insurance purchased for the sole purpose of providing deferred compensation and benefit plans are subject to the following limitations: (i) The bank may purchase individual or group policies for the sole purpose of providing deferred compensation agreements entered into with its officers and employees; (ii) the bank may purchase policies on directors to fund a deferred directors fees program; (iii) the board of directors must approve and document such deferred plans including the reasonableness of the plans; (iv) the bank is not authorized to hold the policies unless specifically approved by the state banking board if no liability exists under the deferred compensation plans; (v) the cash surrender value of any life insurance policy purchased for the sole purpose of providing deferred compensation and benefit plans, underwritten by any one life insurance company, cannot exceed at any time, 15% of the bank's capital stock, surplus, undivided profits, loan loss reserve, capital notes and debentures and reserve for contingency, unless the bank has obtained the prior approval of the state bank commissioner; and (vi) the cash surrender value of life insurance policies purchased for the sole purpose of providing deferred compensation and benefit plans, in the aggregate from all companies, cannot at any time exceed 25% of the bank's capital stock, surplus, undivided profits, loan loss reserve, capital notes and debentures and reserve for contingency, unless the bank has obtained the prior approval of the state bank commissioner; March 19, 1997 467 (25) subject to such rules and regulations as the state bank commissioner may adopt pursuant to K.S.A. 9-1713 and amendments thereto to promote safe and sound banking practices, to act as an agent and receive deposits, renew time deposits, close loans, service loans, and receive payments on loans and other obligations for any company which is a subsidiary, as defined in subsection (d) of K.S.A. 9-519 and amendments thereto of the bank holding company which owns the bank. Nothing in this subsection shall authorize a bank to conduct activities as an agent which the bank or the subsidiary would be prohibited from conducting as a principal under any applicable federal or state law. Any bank which enters or terminates any agreement pursuant to this subsection shall within 30 days of the effective date of the agreement or termination provide written notification to the commissioner which details all parties involved and services to be performed or terminated; (26) to make loans to the bank's stockholders or the stockholders of the bank's controlling bank holding company on the security of the shares of the bank or shares of the bank's controlling bank holding company, with the limitation that this may occur only if the bank would have extended credit to such stockholder on exactly the same terms without the shares pledged as collateral, and provided the shares pledged are not a director's qualifying shares per K.S.A. 9-1117, and amendments thereto;and(27) to make investments in and loans to community development corporations (CDCs) and community development projects (CD projects) as defined in K.S.A. 9-701 and amendments thereto, subject to the limitations prescribed by the comptroller of the currency as interpreted by rules and regulations which shall be adopted by the state bank commissioner as provided by K.S.A. 9-1713 and amendments thereto; and (28) to participate in a school savings deposit program authorized under section 1.''; Also on page 1, in line 13, by striking ``Section 1.'' and inserting ``Sec. 3.''; On page 5, following line 14, by inserting the following: ``Sec. 4. K.S.A. 1996 Supp. 9-1111 is hereby amended to read as follows: 9-1111. The general business of every bank shall be transacted at the place of business specified in its certificate of authority and at one or more branch banks established and operated as provided in this section. Except for the establishment or operation of a trust branch bank or the relocation of an existing trust branch bank pursuant to K.S.A. 1996 Supp. 9-1135 and amendments thereto, it shall be unlawful for any bank to establish and operate any branch bank or relocate an existing branch bank except as hereinafter provided. Notwithstanding the provisions of this section, any location at which a depository institution, as defined by K.S.A. 9-701 and amendments thereto, receives deposits, renews time deposits, closes loans, services loans or receives payments on loans or other obligations, as agent, for a bank pursuant to subsection(28)(25) of K.S.A. 9-1101 and amendments thereto or other applicable state or federal law, or is authorized to open accounts or receive deposits under subsection (28) of K.S.A. 9-1101, and amendments thereto, shall not be deemed to be a branch bank: (a) For the purposes of this section, the term ``branch bank'' means any office, agency or other place of business located within this state, other than the place of business specified in the bank's certificate of authority, at which deposits are received, checks paid, money lent or trust authority exercised, if approval has been granted by the state bank commissioner, under K.S.A. 9-1602, and amendments thereto; (b) after first applying for and obtaining the approval of the state banking board, one or more branch banks may be established and operated anywhere within this state by a bank incorporated under the laws of this state; (c) an application to establish and operate a branch bank or to relocate an existing branch bank shall be in such form and contain such information as the rules and regulations of the state bank commissioner, adopted pursuant to K.S.A. 9-1713, and amendments thereto, shall provide; (d) the application shall include estimates of the annual income and expenses of the proposed branch bank, the annual volume of business to be transacted by it, the nature of the banking business to be conducted at the proposed branch bank, the primary geographical area to be served by it and the personnel and office facilities to be provided at the proposed branch bank; 468 JOURNAL OF THE HOUSE (e) the application shall include the name selected for the proposed branch bank. The name selected for the proposed branch bank shall not be the name of any other bank or branch bank doing business in the same city or town nor shall the name selected be required to contain the name of the applicant bank. If the name selected for the proposed bank does not contain the name of the applicant bank, the branch bank shall provide in the public lobby of such branch bank, a public notice that it is a branch bank of the applicant bank; (f) the application shall include an affidavit of publication of notice that applicant bank intends to file an application to establish a branch bank or relocate an existing branch bank. The notice shall be published in a newspaper of general circulation in the county where the applicant bank proposes to locate the branch bank. The notice shall be in the form prescribed by the state banking board and at a minimum shall contain, the name and address of the applicant bank, the location of the proposed branch, a solicitation for written comments concerning the proposed branch be submitted to the state banking board, and provide for a comment period of not less than 10 days prior to the board's final consideration of the application; (g) upon receipt of an application meeting the above requirements, if there is any written objection to the application filed with the board, within 60 days after receipt of the application, the state banking board shall hold a hearing in the county in which the applicant bank seeks to establish and operate a branch bank. If there is no written objection filed with the board within the time period specified under subsection (f), the board may hold a hearing on the application in such county. Notice of the time, date and place of such hearing if one is to be held shall be published in a newspaper of general circulation in such county by the bank seeking to establish and operate the branch bank not less than 10 or more than 30 days prior to the date of the hearing, and an affidavit of publication thereof shall be filed with the commissioner. Not less than 10 days or more than 30 days prior to any such date of the hearing, the commissioner shall give notice of the time, date and place of such hearing by registered or certified mail to all banks and national banking associations having their principal places of business or branch banks in the county wherein the applicant bank seeks to locate a branch bank. At any such hearing, all interested persons shall be allowed to present written and oral evidence to the board in support of or in opposition to the application. Upon completion of a transcript of the testimony given at any such hearing, the transcript shall be filed in the office of the commissioner and copies shall be furnished to the members of the state banking board not less than 14 days prior to the meeting of the board at which the application will be considered; (h) the state banking board shall approve or disapprove the application, within 90 days after consideration of the application and the evidence gathered during the board's investigation. If the board finds that: (1) There is or will be at the time the branch bank is opened the need for the same in the community to be served by it; (2) there is a reasonable probability of usefulness and success of the proposed branch bank; (3) the applicant bank's financial history and condition is sound; and (4) the proposed branch bank can be established without undue injury to properly conducted existing banks and national banking associations, the application shall be granted, otherwise, the application shall be denied; (i) any final action of the board approving or disapproving an application shall be subject to review in accordance with the act for judicial review and civil enforcement of agency actions upon the petition of any adversely affected or aggrieved person who appeared and offered evidence at the hearing upon the application; (j) any branch bank lawfully established and operating on the effective date of this act may continue to be operated by the bank then operating the branch bank and by any successor bank; (k) branch banks which have been established and are being maintained by a bank at the time of its merger into or consolidation with another bank or at the time its assets are purchased and its liabilities are assumed by another bank may continue to be operated by the surviving, resulting or purchasing and assuming bank. The surviving, resulting or purchasing and assuming bank, with approval of the state bank commissioner, may establish March 19, 1997 469 and operate a branch bank or banks at the site or sites of the merged, constituent or liquidated bank or banks; (l) any state bank or national banking association having its principal office and main banking house in this state may provide and engage in banking transactions by means of remote service units wherever located, which remote service units shall not be considered to be branch banks authorized herein. Any banking transaction effected by use of a remote service unit shall be deemed to be transacted at a bank and not at a remote service unit; (m) as a condition to the operation and use of any remote service unit in this state, a state bank or national banking association, each hereinafter referred to as a bank, which desires to operate or enable its customers to utilize a remote service unit must agree that such remote service unit will be available for use by customers of any other bank or banks upon the request of such bank or banks to share its use and the agreement of such bank or banks to share all costs, including a reasonable return on capital expenditures incurred in connection with its development, installation and operation. The owner of the remote service unit, whether a bank or any other person, shall make the remote service unit available for use by other banks and their customers on a nondiscriminatory basis, conditioned upon payment of a reasonable proportion of all costs, including a reasonable return on capital expenditures incurred in connection with the development, installation and operation of the remote service unit. Notwithstanding the foregoing provisions of this subsection, a remote service unit located on the property owned or leased by the bank where the principal place of business of a bank, or an attached auxiliary teller facility or branch bank of a bank, is located need not be made available for use by any other bank or banks or customers of any other bank or banks; (n) for purposes of this section, ``remote service unit'' means an electronic information processing device, including associated equipment, structures and systems, through or by means of which information relating to financial services rendered to the public is stored and transmitted, whether instantaneously or otherwise, to a bank and which, for activation and account access, is dependent upon the use of a machine-readable instrument in the possession and control of the holder of an account with a bank. The term shall include ``online'' computer terminals and ``offline'' automated cash dispensing machines and automated teller machines, but shall not include computer terminals or automated teller machines or automated cash dispensing machines using systems in which account numbers are not machine read and verified. Withdrawals by means of ``offline'' systems shall not exceed $300 per transaction and shall be restricted to individual not corporate or commercial accounts.''; Also on page 5, by renumbering sections 2 and 3 as sections 5 and 6, respectively; in line 15, by striking ``Supp. 9-1104 is'' and inserting ``9-1101, 9-1104 and 9-1111 are''; On page 1, in the title, in line 9, by striking ``limitations on loans by''; also in line 9, following ``banks'' by inserting ``and banking''; in line 10, by striking ``9-1104'' and inserting ``9-1101, 9-1104 and 9-1111''; also in line 10, by striking ``section'' and inserting ``sections''; and the bill be passed as amended. The Committee on Committee on Insurance recommends SB 303 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 Transportation recommends SB 117, as amended by Senate Committee, be passed. The Committee on Transportation recommends SB 131 be amended on page 1, in line 33, by striking ``attending'' and inserting ``enrolled in''; in line 34, preceding ``functions'' by inserting ``attendance at class at the community college or to and from''; in line 42, preceding the comma, by inserting ``to or from attendance at class at the four-year college or university, area vocational school or area vocational-technical school or for transportation of students''; On page 2, following line 15, by inserting the following: ``New Sec. 2. (a) The board of education of any school district, pursuant to a policy developed and adopted by the board, may provide that whenever the school district furnishes school bus transportation for pupils of the school district to or from attendance at class in an area vocational school, area vocational-technical school, technical college, community college, or four-year college or university, adults who are students enrolled at any such 470 JOURNAL OF THE HOUSE educational institution may be furnished such school bus transportation to or from attendance at class, on a space available basis, along with the pupils of the school district. Whenever any school district shall furnish transportation for adult students pursuant to a policy adopted under authority of this section, such transportation shall be furnished subject to such terms and conditions as the board of education of the school district shall impose. (b) Fees for the furnishing of transportation for adult students pursuant to a policy adopted under authority of this section may be charged such adult students to offset, totally or in part, any costs incurred by a school district in the furnishing of such transportation, or such transportation may be furnished free of charge. Any revenues received by a board of education as fees charged adult students for transportation furnished under authority of this section shall be deposited in the transportation fund of the district and may be expended whether the same have been budgeted or not. Sec. 3. K.S.A. 1996 Supp. 8-2009a is hereby amended to read as follows: 8-2009a. (a) Every school bus, as defined in K.S.A. 8-1461, and amendments thereto, shall be governed by the requirements of law and rules and regulations of the state board of education applicable to design, lighting equipment, distinctive markings, special warning devices, and any other equipment which are in effect on the date any such school bus is purchased or otherwise acquired, and shall be exempt from the requirements of law and rules and regulations which become effective at any time during a period of1220 years from the date of manufacture of such school bus, except that any school bus which was in operation onthe effective date of this actJuly 1, 1994, and exceeds such12-year20-year period shall be exempt until July 1, 1998. The state board of education is hereby required to approve any such school bus as to design, and as to lighting equipment, special warning devices, distinctive markings, and any other equipment required by law and rules and regulations, for operation as a school bus during such exemption period upon submission of a request for such approval. (b) The state board of education is authorized to establish the procedure to be followed when request for approval of any such school bus is submitted under this section. The approval shall be in writing and a copy of the written approval shall be carried in the school bus at all times, but failure to carry such copy of the written approval shall not affect the status of the school bus as an approved school bus. The state board of education shall maintain a list of all such school buses which have been approved by the board.''; Also on page 2, by renumbering sections 2 and 3 as sections 4 and 5; in line 16, by striking ``72-8316 is'' and inserting ``8-2009a and 72-8316 are''; On page 1, in the title, in line 9, by striking ``districts'' and inserting ``buses''; also in line 9, by striking ``policies for the use of''; in line 10, by striking all preceding the semicolon and inserting ``the operation and use thereof''; in line 11, following ``Supp.'' by inserting ``82009a and''; also in line 11, by striking ``section'' and inserting ``sections''; and the bill be passed as amended. The Committee on Utilities recommends SB 212, as amended by Senate Committee of the Whole, be amended on page 3, in line 40, by striking all after ``Nothing''; by striking all of lines 41 and 42; in line 43, by striking all before the period and inserting ``shall preclude the commission from approving, proposing or endorsing, as part of the commission's ratemaking process, an incentive rate mechanism for setting rates of a utility industry by means other than a cost of service analysis if the commission determines that competition effectively exists in the industry's service and prices or if the commission determines that the ratepayers will derive significant benefits''; On page 4, after line 26, by inserting: ``Sec. 2. K.S.A. 1996 Supp. 66-2008 is hereby amended to read as follows: 66-2008. On or before January 1, 1997, the commission shall establish the Kansas universal service fund, hereinafter referred to as the KUSF. (a) The initial amount of the KUSF shall be comprised of local exchange carrier revenues lost as a result of rate rebalancing pursuant to subsection (c) of K.S.A. 1996 Supp. 66-2005 and subsection (a) of K.S.A. 1996 Supp. 66-2007, and amendments thereto. Such revenues shall be recovered on a revenue neutral basis. The revenue neutral calculation shall be based on the volumes and revenues for the 12 months prior to September 30, 1996, adjusted for any rate changes. March 19, 1997 471 (b) The commission shall require every telecommunications carrier, telecommunications public utility and wireless telecommunications service provider that provides intrastate telecommunications services to contribute to the KUSF on an equitable and nondiscriminatory basis. Any telecommunications carrier, telecommunications public utility or wireless telecommunications service provider which contributes to the KUSF may collect from customers an amount equal to such carrier's, utility's or provider's contribution. (c) Pursuant to the federal act, distributions from the KUSF shall be made in a competitively neutral manner to qualified telecommunications public utilities, telecommunications carriers and wireless telecommunications providers, that are deemed eligible both under subsection (e)(1) of section 214 of the federal act and by the commission. (d) The commission shall periodically review the KUSF to determine if the costs of qualified telecommunications public utilities, telecommunications carriers and wireless telecommunications service providers to provide local service justify modification of the KUSF. If the commission determines that any changes are needed, the commission shall modify the KUSF accordingly. (e) Any qualified telecommunications carrier, telecommunications public utility or wireless telecommunications service provider may request supplemental funding from the KUSF based upon a percentage increase in access lines over the 12 month period prior to its request. The supplemental funding shall be incurred for the purpose of providing services to and within the service area of the qualified telecommunications carrier, telecommunications public utility or wireless telecommunications service provider. Supplemental funding from the KUSF shall be used for infrastructure expenditures necessary to serve additional customers within the service area of such qualifying utility, provider or carrier. All affected parties shall be allowed to review and verify a request of such a qualified utility, carrier or provider for supplemental funding from the KUSF, and to intervene in any commission proceeding regarding such request. The commission shall issue an order on the request within 120 days of filing. Additional funding also may be requested for: the recovery of shortfalls due to additional rebalancing of rates to continue maintenance of parity with interstate access rates; shortfalls due to changes to access revenue requirements resulting from changes in federal rules; additional investment required to provide universal service and enhanced universal service; and for infrastructure expenditures in response to facility or service requirements established by any legislative, regulatory or judicial authority. Such requests shall be subject to simplified filing procedures and the expedited review procedures, as outlined in the stipulation attached to the order of November 19, 1990 in docket no. 127,140-U (Phase IV). Classification of service as single or multiple line service or as residential or business service shall not be grounds for denial of an application for supplemental or additional funding under this subsection. (f) Additional supplemental funding from the KUSF, other than as provided in subsection (e)of this section, may be authorized at the discretion of the commission. However, the commission may require approval of such funding to be based upon a general rate case filing. With respect to any request for additional supplemental funding from the KUSF, the commission shall act expeditiously, but shall not be subject to the 120 day deadline set forth in subsection (e).''; Also on page 4, by renumbering the remaining sections accordingly; in line 27, by striking ``is'' and inserting ``and 66-2008 are''; On page 1, in the title, in line 13, before ``amending'' by inserting ``Kansas universal service fund;''; also in line 13, after ``66-117'' by inserting ``and 66-2008''; in line 14, by striking ``section'' and inserting ``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 bill was introduced and read by title: HB 2538, An act relating to property taxation; concerning the classification of property for such purposes; amending K.S.A. 1996 Supp. 79-1439 and repealing the existing section, by Committee on Appropriations. 472 JOURNAL OF THE HOUSE CHANGE OF REFERENCE Speaker pro tem Wagle announced the withdrawal of HB 2323 from Committee on Federal and State Affairs and referral to Committee on Tourism. REPORT ON ENGROSSED BILLS HB 2057 reported correctly engrossed March 17, 1997. REPORT ON ENROLLED BILLS HB 2057 reported correctly enrolled, properly signed and presented to the governor on March 18, 1997. On motion of Rep. Jennison, the House adjourned until 10:30 a.m., Thursday, March 20, 1997. CHARLENE SWANSON, Journal Clerk. JANET E. JONES, Chief Clerk. +--+ | | +--+