J o u r n a l o f t h e H o u s e FORTY-EIGHTH DAY -------- HALL OF THE HOUSE OF REPRESENTATIVES TOPEKA, KAN., Friday, March 21, 1997, 10:00 a.m. The House met pursuant to adjournment with Speaker pro tem Wagle in the chair. The roll was called with 121 members present. Rep. Dean was excused on verified illness. Reps. Ballard, Mayans and Packer were excused on excused absence by the Speaker. Prayer by Chaplain Washington: Heavenly Father, Thank You for helping us get through this week. For many of us, it has been excessively stressful. Thank You for bringing us to another weekend, a break time, an opportunity to turn our attention toward home. Please grant traveling grace, and during this weekend, please grant times of refreshing. Bless these men and women to find that while they took care of business here, You took care of their business there. Restore them. Let Your blessed presence be acknowledged in their relationships. Relieve the stresses at home that they may return with hearts as the Psalmist in 90:12 . . . applied unto wisdom. I come to You in the Name of Jesus. Amen PRESENTATION OF PETITIONS The following petitions were presented and filed: HP 2003, by Rep. Powell, a petition supporting HB 2269 concerning the ``Women's Right To Know Act,'' signed by Patricia Keplinger and 25 others from Wichita, Derby, Andover and Rose Hill. HP 2004, by Reps. Nichols and Horst, a petition supporting an automatic cost of living adjustment for KPERS, including retired school teachers, and KP&F retirees, by Basil Covey, Chairman KRTA and 1,326 citizens of Kansas. HP 2005, by Rep. Shore, a petition opposing casino gambling business via HB 2174, signed by Joe P. Garrison and 19 others from the Ulysses area. INTRODUCTION OF BILLS AND CONCURRENT RESOLUTIONS The following concurrent resolution was introduced and read by title: HOUSE CONCURRENT RESOLUTION No. 5024-- By Representative Shallenburger (By request) A CONCURRENT RESOLUTION designating the square dance as the official state folk dance of Kansas and the polka as a state ethnic dance. Be it resolved by the House of Representatives of the State of Kansas, the Senate concurring therein: That the square dance is hereby designated and declared to be the official folk dance of the state of Kansas; and Be it further resolved: That the polka dance is hereby designated as a state ethnic dance of Kansas; and 492 JOURNAL OF THE HOUSE Be it further resolved: That the Secretary of State be directed to send an enrolled copy of this resolution to the Governor and to the Executive Director of the State Historical Society. REFERENCE OF BILLS AND CONCURRENT RESOLUTIONS The following bills and resolutions were referred to committees as indicated: Agriculture: HR 6012. Appropriations: HB 2539; SB 371, 376. Business, Commerce and Labor: Sub. SB 321. Economic Development: SB 280 (separately). Financial Institutions: SB 302. Judiciary: SB 363. Taxation: SB 280 (separately). Transportation: Sub. SB 332. COMMUNICATIONS FROM STATE OFFICERS From Shirley A. Moses, Director, Division of Accounts and Reports, State of Kansas Monthly Financial Report for February 1997. The complete report is kept on file and open for inspection in the office of the Chief Clerk. MESSAGES FROM THE SENATE Announcing passage of SB 104. Announcing passage of HB 2013, 2043, 2049, 2075, 2176, 2199, 2211. Also, passage of HB 2070, as amended; HB 2094, as amended; HB 2245, as amended; HB 2303, as amended. Also, announcing passage of SB 140, 325, 337, 373. Also, passage of HB 2031, as amended; HB 2137, as amended. The Senate nonconcurs in House amendments to SB 232, requests a conference and has appointed Senators Hardenburger, Becker and Gooch as conferees on the part of the Senate. Also, the Senate nonconcurs in House amendments to SB 147, requests a conference and has appointed Senators Ranson, Clark and Barone as conferees on the part of the Senate. INTRODUCTION OF SENATE BILLS AND CONCURRENT RESOLUTIONS The following Senate bill was thereupon introduced and read by title: SB 104, 140, 325, 337, 373. CONSENT CALENDAR Objection was made to SB 229 appearing on the Consent Calendar; the bill was placed on the calendar under the heading of General Orders. No objection was made to SB 123, 282, 365 appearing on the Consent Calendar for the first day. No objection was made to Sub. SB 185; SB 303 appearing on the Consent Calendar for the second day. No objection was made to SB 49, 55, 57 appearing on the Consent Calendar for the third day. The bills were advanced to Final Action on Bills and Concurrent Resolutions. FINAL ACTION ON BILLS AND CONCURRENT RESOLUTIONS SB 49, An act concerning annual reports to the governor by the commissioner of insurance; amending K.S.A. 40-108 and repealing the existing section, was considered on final action. On roll call, the vote was: Yeas 120; Nays 0; Present but not voting 0; Absent or not voting 5. Yeas: Adkins, Alldritt, Allen, Aurand, Ballou, Beggs, Benlon, Boston, Bradley, Burroughs, Campbell, Carmody, Compton, Correll, Cox, Crow, Dahl, Dillon, Dreher, Edmonds, Empson, Faber, Farmer, Feuerborn, 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, March 21, 1997 493 Johnson, Johnston, Kejr, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, Lloyd, J. Long, P. Long, Mason, Mays, McClure, McCreary, McKechnie, McKinney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Osborne, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Welshimer, Wempe, Wilk, Wilson. Nays: None. Present but not voting: None. Absent or not voting: Ballard, Dean, Mayans, Packer, Wells. The bill passed. SB 55, An act concerning insurance; risk-based capital requirements; amending K.S.A. 1996 Supp. 40-2c01 and repealing the existing section, was considered on final action. On roll call, the vote was: Yeas 121; Nays 0; Present but not voting 0; Absent or not voting 4. Yeas: Adkins, Alldritt, Allen, Aurand, Ballou, Beggs, Benlon, Boston, Bradley, Burroughs, Campbell, Carmody, Compton, Correll, Cox, Crow, Dahl, Dillon, Dreher, Edmonds, Empson, Faber, Farmer, Feuerborn, 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, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, Lloyd, J. Long, P. Long, Mason, Mays, McClure, McCreary, McKechnie, McKinney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Osborne, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson. Nays: None. Present but not voting: None. Absent or not voting: Ballard, Dean, Mayans, Packer. The bill passed. SB 57, An act concerning group life insurance; persons who may be insured; amending K.S.A. 1996 Supp. 40-433 and repealing the existing section, was considered on final action. On roll call, the vote was: Yeas 120; Nays 0; Present but not voting 1; Absent or not voting 4. Yeas: Adkins, Alldritt, Allen, Aurand, Ballou, Beggs, Benlon, Boston, Bradley, Burroughs, Campbell, Carmody, Compton, Correll, Cox, Crow, Dahl, Dillon, Dreher, Edmonds, Empson, Faber, Farmer, Feuerborn, 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, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Lane, Larkin, Lloyd, J. Long, P. Long, Mason, Mays, McClure, McCreary, McKechnie, McKinney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Osborne, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson. Nays: None. Present but not voting: Landwehr. Absent or not voting: Ballard, Dean, Mayans, Packer. The bill passed. SB 10, An act concerning health care data; concerning the health care data governing board; concerning legislative post audit; relating to the performance audit of the health care 494 JOURNAL OF THE HOUSE database; amending K.S.A. 1996 Supp. 65-6803 and 65-6808 and repealing the existing sections, was considered on final action. On roll call, the vote was: Yeas 121; Nays 0; Present but not voting 0; Absent or not voting 4. Yeas: Adkins, Alldritt, Allen, Aurand, Ballou, Beggs, Benlon, Boston, Bradley, Burroughs, Campbell, Carmody, Compton, Correll, Cox, Crow, Dahl, Dillon, Dreher, Edmonds, Empson, Faber, Farmer, Feuerborn, 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, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, Lloyd, J. Long, P. Long, Mason, Mays, McClure, McCreary, McKechnie, McKinney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Osborne, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson. Nays: None. Present but not voting: None. Absent or not voting: Ballard, Dean, Mayans, Packer. The bill passed, as amended. SB 33, An act concerning municipalities; relating to the bonding of certain officers; amending K.S.A. 19-4204 and 19-4206 and repealing the existing sections, was considered on final action. On roll call, the vote was: Yeas 121; Nays 0; Present but not voting 0; Absent or not voting 4. Yeas: Adkins, Alldritt, Allen, Aurand, Ballou, Beggs, Benlon, Boston, Bradley, Burroughs, Campbell, Carmody, Compton, Correll, Cox, Crow, Dahl, Dillon, Dreher, Edmonds, Empson, Faber, Farmer, Feuerborn, 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, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, Lloyd, J. Long, P. Long, Mason, Mays, McClure, McCreary, McKechnie, McKinney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Osborne, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson. Nays: None. Present but not voting: None. Absent or not voting: Ballard, Dean, Mayans, Packer. The bill passed, as amended. SB 60, An act concerning the Governor's mental health services planning council; relating to size, composition and terms of the council; amending K.S.A. 39-1605 and repealing the existing section, was considered on final action. On roll call, the vote was: Yeas 121; Nays 0; Present but not voting 0; Absent or not voting 4. Yeas: Adkins, Alldritt, Allen, Aurand, Ballou, Beggs, Benlon, Boston, Bradley, Burroughs, Campbell, Carmody, Compton, Correll, Cox, Crow, Dahl, Dillon, Dreher, Edmonds, Empson, Faber, Farmer, Feuerborn, 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, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, Lloyd, J. Long, P. Long, Mason, Mays, McClure, McCreary, McKechnie, McKinney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Osborne, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, March 21, 1997 495 Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson. Nays: None. Present but not voting: None. Absent or not voting: Ballard, Dean, Mayans, Packer. The bill passed, as amended. SB 99, An act concerning state agencies; relating to accounting procedures; amending K.S.A. 75-3734 and repealing the existing section, was considered on final action. On roll call, the vote was: Yeas 121; Nays 0; Present but not voting 0; Absent or not voting 4. Yeas: Adkins, Alldritt, Allen, Aurand, Ballou, Beggs, Benlon, Boston, Bradley, Burroughs, Campbell, Carmody, Compton, Correll, Cox, Crow, Dahl, Dillon, Dreher, Edmonds, Empson, Faber, Farmer, Feuerborn, 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, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, Lloyd, J. Long, P. Long, Mason, Mays, McClure, McCreary, McKechnie, McKinney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Osborne, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson. Nays: None. Present but not voting: None. Absent or not voting: Ballard, Dean, Mayans, Packer. The bill passed, as amended. SB 133, An act concerning certain counties; relating to planning and zoning; amending K.S.A. 19-2958 and repealing the existing section, was considered on final action. On roll call, the vote was: Yeas 112; Nays 9; Present but not voting 0; Absent or not voting 4. Yeas: Adkins, Allen, Aurand, Ballou, Beggs, Benlon, Boston, Bradley, Burroughs, Campbell, Carmody, Compton, Cox, Dahl, Dillon, Dreher, Edmonds, Empson, Faber, Farmer, Findley, Flaharty, Flora, Flower, Franklin, 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, McKechnie, McKinney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Osborne, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Wempe, Wilk, Wilson. Nays: Alldritt, Correll, Crow, Feuerborn, Freeborn, Garner, Geringer, Gilbert, Welshimer. Present but not voting: None. Absent or not voting: Ballard, Dean, Mayans, Packer. The bill passed, as amended. MOTIONS TO CONCUR AND NONCONCUR On motion of Rep. Boston, the House concurred in Senate amendments to HB 2108, An act concerning the Kansas commission on veterans affairs; relating to Persian Gulf War syndrome; establishing an advisory board; prescribing powers, duties, functions and guidelines for the commission and advisory board; providing for confidentiality of certain 496 JOURNAL OF THE HOUSE information and exceptions thereto; establishing the Persian Gulf War veterans health initiative fund. On roll call, the vote was: Yeas 121; Nays 0; Present but not voting 0; Absent or not voting 4. Yeas: Adkins, Alldritt, Allen, Aurand, Ballou, Beggs, Benlon, Boston, Bradley, Burroughs, Campbell, Carmody, Compton, Correll, Cox, Crow, Dahl, Dillon, Dreher, Edmonds, Empson, Faber, Farmer, Feuerborn, 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, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, Lloyd, J. Long, P. Long, Mason, Mays, McClure, McCreary, McKechnie, McKinney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Osborne, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson. Nays: None. Present but not voting: None. Absent or not voting: Ballard, Dean, Mayans, Packer. On motion of Rep. Phill Kline, the House concurred in Senate amendments to HB 2031, An act enacting the education and tax reform act of 1997; amending K.S.A. 72-6414, 794505 and 79- 4508 and K.S.A. 1996 Supp. 72-6407, 72-6410, 72-6412, 72-6431, 72-6438, 72-6441, 72-6442, 79-32,110, 79-4502 and 79-5105 and repealing the existing sections; also repealing K.S.A. 79-4520 and K.S.A. 1996 Supp. 72-6412a, 72-6431a, 72-6442a, 72-8191 and 72-8192. Call of the House was demanded. On roll call, the vote was: Yeas 120; Nays 1; Present but not voting 0; Absent or not voting 4. Yeas: Adkins, Alldritt, Allen, Aurand, Ballou, Beggs, Benlon, Boston, Bradley, Burroughs, Campbell, Carmody, Compton, Correll, Cox, Crow, Dahl, Dillon, Dreher, Edmonds, Empson, Faber, Farmer, Feuerborn, 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, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, J. Long, P. Long, Mason, Mays, McClure, McCreary, McKechnie, McKinney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Osborne, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson. Nays: Lloyd. Present but not voting: None. Absent or not voting: Ballard, Dean, Mayans, Packer. INTRODUCTION OF ORIGINAL MOTIONS On motion of Rep. Jennison, the House acceded to the request of the Senate for a conference on SB 232. Speaker pro tem Wagle thereupon appointed Reps. Campbell, Glasscock and Welshimer 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 147. Speaker pro tem Wagle thereupon appointed Reps. Myers, Aurand and McKinney as conferees on the part of the House. March 21, 1997 497 On motion of Rep. Jennison, the House went into Committee of the Whole, with Rep. Ballou in the chair. COMMITTEE OF THE WHOLE On motion of Rep. Ballou, Committee of the Whole report, as follows, was adopted: Recommended that SB 117, 222 be passed. Committee report to SB 132 be adopted and the bill be passed as amended. Committee report to SB 131 be adopted and the bill be passed as amended. Committee report to SB 65 be adopted and the bill be passed as amended. Committee report to SB 32 be adopted and the bill be passed as amended. REPORTS OF STANDING COMMITTEES The Committee on Appropriations recommends SCR 1604 be adopted. The Committee on Appropriations recommends HB 2160 be amended as recommended by the House Committee on Appropriations and the bill, as printed with amendments by House Committee, be further amended On page 10, in line 11, by striking ``1997'' and inserting in lieu thereof ``1998''; in line 14, by striking ``1998'' and inserting in lieu thereof ``1999''; in line 19, by striking ``1997'' and inserting in lieu thereof ``1998''; in line 20, by striking ``1998'' and inserting in lieu thereof ``1999''; On page 11, in line 6, by striking ``1997'' and inserting in lieu thereof ``1998''; in line 9, by striking ``1998'' and inserting in lieu thereof ``1999''; in line 14, by striking ``1997'' and inserting in lieu thereof ``1998''; in line 15, by striking ``1998'' and inserting in lieu thereof ``1999''; On page 12, in line 30, by striking ``1998'' and inserting in lieu thereof ``1999''; in line 40, by striking ``1999'' and inserting in lieu thereof ``2000''; On page 14, in line 24, by striking ``$9,990,493'' and inserting in lieu thereof ``$10,155,493''; On page 18, in line 23, by striking ``$1,562,367'' and inserting in lieu thereof ``$1,577,142''; On page 19, in line 5, by striking ``$93,397'' and inserting in lieu thereof ``$99,307''; in line 23, by striking ``$2,946,134'' and inserting in lieu thereof ``$3,219,655''; On page 22, in line 32, by striking ``$1,768,620'' and inserting in lieu thereof ``$1,809,897''; On page 25, in line 31, by striking ``54.6'' and inserting in lieu thereof ``56.5''; On page 26, in line 43, by striking ``$10,298,609'' and inserting in lieu thereof ``$10,624,274''; On page 29, in line 32, by striking ``$315,541'' and inserting in lieu thereof ``$354,936''; On page 30, in line 5, by striking ``$1,346,627'' and inserting in lieu thereof ``$1,375,083''; On page 34, in line 35, by striking ``policy analysis initiatives'' and inserting in lieu thereof ``performance review board''; On page 40, in line 42, by striking ``7.6'' and inserting in lieu thereof ``9.0''; in line 43, by striking ``36.1'' and inserting in lieu thereof ``37.0''; On page 41, in line 8, by striking ``$1,282,492'' and inserting in lieu thereof ``$1,347,014''; On page 45, in line 18, by striking ``30.75%'' and inserting in lieu thereof ``31.75%''; On page 47, in line 5, by striking ``$2,390,197'' and inserting in lieu thereof ``$2,553,346''; On page 50, in line 11, by striking ``$12,759,944'' and inserting in lieu thereof ``$13,396,225''; in line 25, by striking ``$6,685,344'' and inserting in lieu thereof ``$7,420,875''; On page 51, in line 3, by striking ``$479,600'' and inserting in lieu thereof ``$380,350''; On page 53, in line 5, by striking ``$153,135'' and inserting in lieu thereof ``$162,620''; On page 54, in line 42, by striking ``25.0'' and inserting in lieu thereof ``28.0''; On page 55, in line 12, by striking ``116.8'' and inserting in lieu thereof ``134.0''; in line 24, by striking ``$1,485,978'' and inserting in lieu thereof ``$1,514,434''; in line 38, by striking ``$7,319,426'' and inserting in lieu thereof ``$7,430,014''; On page 57, in line 26, by striking ``$12,092,781'' and inserting in lieu thereof ``$13,527,467''; in line 30, before the period, by inserting the following: ``: Provided further, That expenditures shall be made from this account for purposes of a reorganization and reassignment of duties and staff within the division of environment of the department of health and environment, which reorganization and reassignment is hereby authorized and 498 JOURNAL OF THE HOUSE directed to be conducted by the secretary of health and environment for the purposes of providing better service and greater efficiency''; in line 32, by striking ``$4,383,852'' and inserting in lieu thereof ``$4,475,288''; On page 65, in line 16, by striking ``$106,427,670'' and inserting in lieu thereof ``$110,490,583''; On page 66, in line 27, by striking ``981.8'' and inserting in lieu thereof ``1,015.5''; in line 29, by striking ``796.6'' and inserting in lieu thereof ``818.1''; in line 30, by striking ``37.8'' and inserting in lieu thereof ``166.3''; On page 67, in line 7, by striking ``$164,408,114'' and inserting in lieu thereof ``$164,568,114''; On page 72, in line 22, by striking ``$9,511,965'' and inserting in lieu thereof ``$10,036,636''; in line 23, by striking ``$2,744,631'' and inserting in lieu thereof ``$2,935,718''; in line 25, by striking ``$117,313,358'' and inserting in lieu thereof ``$117,473,358''; On page 76, in line 12, by striking ``$893,431'' and inserting in lieu thereof ``$912,402''; in line 28, by striking ``498.7'' and inserting in lieu thereof ``518.0''; in line 29, by striking ``129.6'' and inserting in lieu thereof ``136.4''; On page 77, in line 19, by striking ``$1,385,620,000'' and inserting in lieu thereof ``$1,519,600,162''; in line 22, by striking ``$52,089,000'' and inserting in lieu thereof ``$49,648,725''; On page 84, in line 5, by striking ``$3,896,733'' and inserting in lieu thereof ``$3,911,473''; On page 85, in line 5, by striking ``$6,630,814'' and inserting in lieu thereof ``$6,740,139''; in line 30, by striking ``$5,196,800'' and inserting in lieu thereof ``$5,421,353''; On page 87, in line 5, by striking ``131.6'' and inserting in lieu thereof ``136.5''; On page 99, in line 25, by striking ``$110,854,916'' and inserting in lieu thereof ``$110,872,707''; in line 40, by striking ``$71,482,905'' and inserting in lieu thereof ``$71,481,865''; On page 106, in line 13, by striking ``$56,034,828'' and inserting in lieu thereof ``$56,049,853''; in line 21, by striking ``$25,017,435'' and inserting in lieu thereof ``$24,626,795''; On page 108, before line 37, by inserting the following: ``Technology equipment at regents institutions.................. $4,500,000 Provided, That the state board of regents is hereby authorized to transfer moneys from this account to an account or accounts of the restricted fees fund of any institution under its jurisdiction for the purchase of technology equipment, in accordance with guidelines established by the state board of regents.''; On page 112, in line 20, by striking ``$115,005,002'' and inserting in lieu thereof ``$119,668,658''; On page 114, in line 11, by striking ``$11,919,706'' and inserting in lieu thereof ``$11,982,942''; in line 12, by striking ``$20,591,697'' and inserting in lieu thereof ``$20,800,376''; in line 13, by striking ``$28,423,588'' and inserting in lieu thereof ``$29,593,454''; in line 14, by striking ``$7,646,462'' and inserting in lieu thereof ``$7,757,125''; in line 15, by striking ``$5,443,847'' and inserting in lieu thereof ``$8,560,042''; in line 17, by striking ``$15,336,312'' and inserting in lieu thereof ``$15,405,872''; in line 18, by striking ``$6,067,490'' and inserting in lieu thereof ``$6,500,657''; in line 42, by striking ``2,854.0'' and inserting in lieu thereof ``3,002.5''; On page 115, in line 5, by striking ``$3,770,217'' and inserting in lieu thereof ``$3,838,979''; On page 119, in line 5, by striking ``$10,190,817'' and inserting in lieu thereof ``$10,575,897''; On page 121, in line 8, by striking ``$9,928,856'' and inserting in lieu thereof ``$9,965,204''; On page 122, after line 10, by inserting the following: ``(d) On July 1, 1997, or as soon thereafter as funds are available, the director of accounts and reports shall transfer $41,333 from the alcohol and drug abuse block grant federal fund of the department of social and rehabilitation services to the youth center at Beloit fee fund.''; On page 123, in line 7, by striking ``$704,692'' and inserting in lieu thereof ``$726,382''; in line 29, by striking ``$238,071'' and inserting in lieu thereof ``$247,556''; March 21, 1997 499 On page 124, in line 23, by striking ``217.5'' and inserting in lieu thereof ``226.0''; in line 27, by striking ``182.4'' and inserting in lieu thereof ``196.5''; in line 28, by striking ``151.5'' and inserting in lieu thereof ``0''; in line 29, by striking ``220.8'' and inserting in lieu thereof ``222.0''; in line 34, by striking ``5.7'' and inserting in lieu thereof ``6.0''; On page 127, in line 29, by striking ``$493,495'' and inserting in lieu thereof ``$540,922''; On page 128, in line 21, by striking ``$54,926'' and inserting in lieu thereof ``$55,000''; On page 129, in line 15, by striking ``$545,406'' and inserting in lieu thereof ``$567,539''; On page 130, in line 15, by striking ``$2,472,150'' and inserting in lieu thereof ``$2,478,424''; in line 24, by striking ``$100,000'' and inserting in lieu thereof ``$93,726''; On page 131, in line 8, by striking ``$1,277,850'' and inserting in lieu thereof ``$1,296,821''; following line 42, by inserting the following material to read as follows: ``(c) On June 30, 1998, the director of accounts and reports shall transfer any unencumbered balance in each of the following funds of the specified state agencies to the state water plan fund of the Kansas water office: Water plan special revenue fund of the department of health and environment; environmental education grant fund of the department of education; irrigation research field grant -- water plan fund of Kansas state university extension systems and agriculture research programs; water plan special revenue fund of the Kansas department of agriculture; water plan special revenue fund of the state conservation commission; water plan special revenue fund of the Kansas department of wildlife and parks.''; On page 132, in line 5, by striking ``$3,484,179'' and inserting in lieu thereof ``$3,725,945''; On page 134, in line 23, by striking ``27.5'' and inserting in lieu thereof ``29.0''; in line 25, by striking ``16.1'' and inserting in lieu thereof ``18.0''; in line 27, by striking ``13.3'' and inserting in lieu thereof ``14.0''; in line 28, by striking ``20.9'' and inserting in lieu thereof ``21.5''; in line 29, by striking ``389.5'' and inserting in lieu thereof ``394.3''; On page 137, in line 32, by striking ``1997'' and inserting in lieu thereof ``1998''; On page 139, in line 18, by striking ``1997'' and inserting in lieu thereof ``1998''; On page 140, in line 6, by striking ``1997'' and inserting in lieu thereof ``1998''; and the bill be passed as amended. The Committee on Appropriations recommends HB 2238 be amended on page 1, after line 17, by inserting: ``Section 1. K.S.A. 1996 Supp. 20-2601 is hereby amended to read as follows: 20-2601. As used in K.S.A. 20-2601 et seq. and amendments thereto, unless the context otherwise requires: (a) ``Fund'' means the Kansas public employees retirement fund created by K.S.A. 744921 and amendments thereto; (b) ``retirement system for judges'' means the system provided for in the acts contained in article 26 of chapter 20 of the Kansas Statutes Annotated and any acts amendatory thereof or supplemental thereto; (c) ``judge'' means any duly elected or appointed justice of the supreme court, judge of the court of appeals or judge of any district court of Kansas, who serves in such capacity on and after the effective date of this act and commencing with the first day of the first payroll period of the fiscal year ending June 30, 1994, any district magistrate judge who makes an election as provided in K.S.A. 20-2620 and amendments thereto or who is elected or appointed on or after July 1, 1993; (d) ``member'' means a judge who is making the required contributions to the fund, or any former judge who has made the required contributions to the fund and has not received a refund of the judge's accumulated contributions; (e) ``prior service'' means all the periods of time any judge has served in such capacity prior to the effective date of this act except that district magistrate judges who have service credit under the Kansas public employees retirement system must make application to the board and make payment as required by the board to transfer service credit from the Kansas public employees retirement system to the retirement system for judges; (f) ``current service'' means the period of service any judge serves in such capacity from and after the effective date of this act; (g) ``military service'' means active service of any judge in any of the armed forces of the United States or in the United States public health service prior or subsequent to the 500 JOURNAL OF THE HOUSE effective date of this act, provided such service commenced while such judge was holding the office of judge. The board has the power to determine when a national emergency exists or has existed for the purpose of applying this definition and provision; (h) ``total years of service'' means the total number of years served as a judge, including prior service, military service and current service as defined by this section, computed to the nearest quarter; (i) ``salary'' means the statutory salary of a judge; (j) ``final average salary'' means that determined as provided in subsection (b) of K.S.A. 20-2610 and amendments thereto; (k) ``beneficiary'' means any natural person or persons or estate designated by a judge in the latest designation of beneficiary received in the retirement system office to receive any benefits as provided for by this act. Except as provided in subsection (n), if there is no named beneficiary living at the time of the judge's death, any benefits provided for by this act shall be paid to: (1) The judge's surviving spouse; (2) the judge's dependent child or children; (3) the judge's dependent parent or parents; (4) the judge's nondependent child or children; (5) the judge's nondependent parent or parents; (6) the estate of the deceased member; in the order of preference as specified in this subsection. Any payment made to a named beneficiary shall be a full discharge and release to the system from any further claims. Any payment made to a beneficiary as provided in clauses (1), (2), (3), (4), (5) or (6) of this subsection, as determined by the board, shall be a full discharge and release to the system from any further claims. Whenever any payment is payable to more than one beneficiary such payment shall be made to such beneficiaries jointly. Any benefits payable to a beneficiary or beneficiaries who are minor children or incompetent persons shall be made in the name of the beneficiary or beneficiaries and delivered to the lawfully appointed conservator of such beneficiaries who was nominated by will or as otherwise provided by law, except that in those cases where the benefit involves only the payment of the judge's accumulated contributions with interest as provided by this act in an amount not to exceed $500, the board is hereby authorized in its discretion without the appointment of a conservator or the giving of a bond to pay such amount as is due to the minor or minors themselves, any payment so made shall be a full discharge and release to the system from any further claims. Effective January 1, 1998, a member may designate a beneficiary or beneficiaries for any death benefits payable under the provisions of K.S.A. 74-4927 through 74-4927h, and amendments thereto, which are different from any beneficiary or beneficiaries the member may have designated for any other benefits. Designations of beneficiaries by a member who is a member of more than one retirement system made on or after July 1, 1987, shall be the basis of any benefits payable under all systems unless otherwise provided by law; (l) ``annuity'' means a series of equal monthly payments, payable at the end of each calendar month during the life of a retired judge, of which payments the first payment shall be made as of the end of the calendar month in which such annuity was awarded and the last payment shall be at the end of the calendar month in which such judge dies. The first payment shall include all amounts accrued since the effective date of the award of annuities, including a pro rata portion of the monthly amount of any fraction of a month elapsing between the effective date of such annuity and the end of the calendar month in which such annuity began; (m) ``board'' means the board of trustees of the Kansas public employees retirement system; (n) ``trust'' means an express trust created by any trust instrument, including a will, and designated by a member to receive benefits and other amounts payable under K.S.A. 202607, 20-2610a and 20-2612, and amendments thereto, instead of a beneficiary. A designation of a trust shall be filed with the board. If there is a designated trust at the time of the member's death, all benefits and other amounts payable under K.S.A. 20-2607, 202610a and 20-2612, and amendments thereto, shall be paid to the trust instead of the member's beneficiary. If no will is admitted to probate within six months after the death of the member or no trustee qualifies within such six months or if the designated trust fails, for any reason whatsoever, any benefits and other amounts payable under K.S.A. 20-2607, 20-2610a and 20-2612, and amendments thereto, shall be paid to the member's beneficiary March 21, 1997 501 and any payments so made shall be a full discharge and release to the retirement system for judges from any further claims; (o) ``accumulated contributions'' means the sum of all contributions by a member to the retirement system for judges which are credited to the member's account, with interest allowed thereon after June 30, 1982; and (p) except as otherwise provided in K.S.A. 20-2601 et seq. and amendments thereto, words and phrases used in K.S.A. 20-2601 et seq. and amendments thereto shall have the same meanings ascribed to them as are defined in K.S.A. 74-4902 and amendments thereto.''; And by renumbering sections accordingly; Also on page 1, in line 19, after ``(a)'' by inserting ``(1)''; in line 20, after ``an'' by inserting ``annual''; also in line 20, after ``annuity'' by inserting ``payable in monthly amounts''; in line 21, by striking ``monthly payment'' and inserting ``such annual annuity''; in line 26, by striking ``monthly benefits'' and inserting ``annual annuity''; in line 30, after ``an'' by inserting ``annual''; also in line 30, after ``annuity'' by inserting ``payable in monthly amounts''; in line 31, by striking ``monthly payment'' and inserting ``such annual annuity''; in line 34, by striking ``monthly benefits'' and inserting ``annual annuity''; after line 35, by inserting: ``(2) For purposes of this subsection, the date of membership for a district magistrate judge who became a member of the system as provided by K.S.A. 20-2620 and amendments thereto and who purchased service as provided in subsection (c) of K.S.A. 20-2620 and amendments thereto shall be the day such district magistrate judge became a district magistrate judge and if such district magistrate judge's membership date as determined in this subsection is earlier than July 1, 1987, such district magistrate judge shall be entitled to the 5% of final average salary calculation for up to 10 years of service as provided in this subsection. Any additional cost associated with the provisions of this subsection shall be paid by such district magistrate judge by means of a single lump-sum payment. No participating employer shall pay all or any part of any cost associated with the provisions of this subsection.''; On page 2, after line 24, by inserting: ``Sec. 3. K.S.A. 20-2620 is hereby amended to read as follows: 20-2620. (a) Except as otherwise provided, each district magistrate judge holding such position on the effective date of this act may become a member of the retirement system for judges on the first day of the payroll period of the fiscal year ending June 30, 1994, only by filing with the board of trustees of the Kansas public employees retirement system on or before the first day of the payroll period of the fiscal year ending June 30, 1994, a written election to become a member of the system. Failure to file such written election shall be presumed to be an election not to become a member of the system. Such election, whether to become a member or not to become a member, shall be irrevocable. In addition, any such district magistrate judge who makes the election previously provided in this section, may elect to transfer such district magistrate judge's service credit from the Kansas public employees retirement system as provided in subsection (e) of K.S.A. 20-2601 and amendments thereto and subsection (c). The date of membership for a district magistrate judge who became a member of the system as provided in this section and who purchased service as provided in subsection (c) shall be the day that such district magistrate judge became a district magistrate judge. (b) Each person who becomes a district magistrate judge on or after the effective date of this act shall become a member of the retirement system for judges on the first day such person holds the position of district magistrate judge. (c) The board of trustees of the Kansas public employees retirement system shall transfer to the credit of the district magistrate judge under the retirement system for judges such amounts as may be presently credited to a district magistrate judge's account for contribution under the Kansas public employees retirement system and an equivalent amount to the employer's account for contributions for such district magistrate judge whenever an application for conversion of service under the Kansas public employees retirement system is received from a district magistrate judge. Any district magistrate judge may purchase such service by electing such purchase prior to retirement by means of a single lump sum payment or equal annual payments for not to exceed five years. The lump 502 JOURNAL OF THE HOUSE sum or annual payments shall be determined by the system's actuary by using the member's final average salary at the time of application, actuarial assumptions and tables currently in use by the system and the member's attained age. No participating employer shall pay all or any part of the cost of service credit purchased by a member under this section.''; And by renumbering sections accordingly; On page 6, after line 14, by inserting: ``Sec. 5. K.S.A. 1996 Supp. 74-4902 is hereby amended to read as follows: 74-4902. As used in articles 49 and 49a of chapter 74 and amendments thereto, unless otherwise provided or the context otherwise requires: (1) ``Accumulated contributions'' means the sum of all contributions by a member to the system which are credited to the member's account, with interest allowed thereon; (2) ``acts'' means K.S.A. 74-4901 to 74-4929, inclusive, and amendments thereto; (3) ``actuarial equivalent'' means an annuity or benefit of equal value to the accumulated contributions, annuity or benefit, when computed upon the basis of the actuarial tables in use by the system; (4) ``actuarial tables'' means the actuarial tables approved and in use by the board at any given time; (5) ``actuary'' means the actuary or firm of actuaries employed or retained by the board at any given time; (6) ``agent'' means the individual designated by each participating employer through whom system transactions and communication are directed; (7) ``beneficiary'' means any natural person or persons or estate named by a member to receive any benefits as provided for by this act. Designations of beneficiaries by a member who is a member of more than one retirement system made on or after July 1, 1987, shall be the basis of any benefits payable under all systems unless otherwise provided by law. Effective January 1, 1998, a member may designate a beneficiary or beneficiaries for any death benefits payable under the provisions of K.S.A. 74-4927 through 74-4927h, and amendments thereto, which are different from any beneficiary or beneficiaries the member may have designated for any other benefits. Except as otherwise provided by subsection (33) of this section, if there is no named beneficiary living at time of member's death, any benefits provided for by this act shall be paid to: (A) The member's surviving spouse; (B) the member's dependent child or children; (C) the member's dependent parent or parents; (D) the member's nondependent child or children; (E) the member's nondependent parent or parents; (F) the estate of the deceased member; in the order of preference as specified in this subsection. Any payment made to a named beneficiary shall be a full discharge and release to the system from any further claims. Any payment made to a beneficiary as provided in clauses (A), (B), (C), (D), (E) or (F) of this subsection, as determined by the board, shall be a full discharge and release to the system from any further claims. Whenever any payment is payable to more than one beneficiary such payment shall be made to such beneficiaries jointly. Any benefits payable to a beneficiary or beneficiaries who are minor children or incompetent persons shall be made in the name of the beneficiary or beneficiaries and delivered to the lawfully appointed conservator of such beneficiaries who was nominated by will or as otherwise provided by law, except that in those cases where the benefit involves only the payment of the member's accumulated contributions with interest as provided by this act in an amount not to exceed $500, the board is hereby authorized in its discretion without the appointment of a conservator or the giving of a bond to pay such amount as is due to the minor or minors themselves, any payment so made shall be a full discharge and release to the system from any further claims; (8) ``board of trustees,'' ``board'' or ``trustees'' means the managing body of the system which is known as the Kansas public employees retirement system board of trustees; (9) ``compensation'' means all salary, wages and other remuneration payable to a member for personal services performed for a participating employer, including maintenance or any allowance in lieu thereof provided a member as part of compensation, but not including reimbursement for travel or moving expenses or on and after July 1, 1994, payment pursuant to an early retirement incentive program made prior to the retirement of the member. Beginning with the employer's fiscal year which begins in calendar year 1991 or for employers other than the state of Kansas, beginning with the fiscal year which March 21, 1997 503 begins in calendar year 1992, when the compensation of a member who remains in substantially the same position during any two consecutive years of participating service used in calculating final average salary is increased by an amount which exceeds 15%, then the amount of such increase which exceeds 15% shall not be included in compensation, except that (A) any amount of compensation for accumulated sick leave or vacation or annual leave paid to the member, (B) any increase in compensation for any member due to a reclassification or reallocation of such member's position or a reassignment of such member's job classification to a higher range or level and (C) any increase in compensation as provided in any contract entered into prior to January 1, 1991, and still in force on the effective date of this act, pursuant to an early retirement incentive program as provided in K.S.A. 72-5395 et seq. and amendments thereto, shall be included in the amount of compensation of such member used in determining such member's final average salary and shall not be subject to the 15% limitation provided in this subsection. Any contributions by such member on the amount of such increase which exceeds 15% which is not included in compensation shall be returned to the member. Unless otherwise provided by law, beginning with the employer's fiscal year coinciding with or following July 1, 1985, compensation shall include any amounts for tax sheltered annuities or deferred compensation plans. Beginning with the employer's fiscal year which begins in calendar year 1991, compensation shall include amounts under sections 403b, 457 and 125 of the federal internal revenue code of 1986 and, as the board deems appropriate, any other section of the federal internal revenue code of 1986 which defers or excludes amounts from inclusion in income; (10) ``credited service'' means the sum of participating service and prior service and in no event shall credited service include any service which is credited under another retirement plan authorized under any law of this state; (11) ``dependent'' means a parent or child of a member who is dependent upon the member for at least 1/2 of such parent or child's support; (12) ``effective date'' means the date upon which the system becomes effective by operation of law; (13) ``eligible employer'' means the state of Kansas, and any county, city, township, special district or any instrumentality of any one or several of the aforementioned or any noncommercial public television or radio station located in this state which receives state funds allocated by the Kansas public broadcasting commission whose employees are covered by social security. If a class or several classes of employees of any above defined employer are not covered by social security, such employer shall be deemed an eligible employer only with respect to such class or those classes of employees who are covered by social security; (14) ``employee'' means any appointed or elective officer or employee of a participating employer whose employment is not seasonal or temporary and whose employment requires at least 1,000 hours of work per year, but not including: (A) Any person covered by or eligible for or who will become eligible for a retirement annuity under the provisions of K.S.A. 74-4925 and amendments thereto except as otherwise specifically provided in subsection (3) of K.S.A. 74-4925 and amendments thereto and this subsection; (B) any employee who is a contributing member of the United States civil service retirement system; (C) any employee of an eligible employer who is a participant in public service employment under title II and title VI of the federal comprehensive employment and training act of 1973; (D) any employee or class of employees specifically exempted by law. After June 30, 1975, no person who is otherwise eligible for membership in the Kansas public employees retirement system shall be barred from such membership by reason of coverage by, eligibility for or future eligibility for a retirement annuity under the provisions of K.S.A. 74-4925 and amendments thereto, except that no person shall receive service credit under the Kansas public employees retirement system for any period of service for which benefits accrue or are granted under a retirement annuity plan under the provisions of K.S.A. 74-4925 and amendments thereto. After June 30, 1982, no person who is otherwise eligible for membership in the Kansas public employees retirement system shall be barred from such membership by reason of coverage by, eligibility for or future eligibility for any benefit under another retirement plan authorized under any law of this state, except that no such person shall receive service credit under the Kansas public employees retirement system for any period of service for which any benefit accrues or is granted under any such 504 JOURNAL OF THE HOUSE retirement plan. Employee shall include persons who are in training at or employed by, or both, a sheltered workshop for the blind operated by the secretary of social and rehabilitation services. The entry date for such persons shall be the beginning of the first pay period of the fiscal year commencing in calendar year 1986. Such persons shall be granted prior service credit in accordance with K.S.A. 74-4913 and amendments thereto. However, such persons classified as home industry employees shall not be covered by the retirement system; (15) ``entry date'' means the date as of which an eligible employer joins the system. The first entry date pursuant to this act is January 1, 1962; (16) ``executive secretary'' means the managing officer of the system employed by the board under this act; (17) ``final average salary'' means in the case of a member who retires prior to January 1, 1977, and in the case of a member who retires after January 1, 1977, and who has less than five years of participating service after January 1, 1967, the average highest annual compensation paid to such member for any five years of the last 10 years of participating service immediately preceding retirement or termination of employment, or in the case of a member who retires on or after January 1, 1977, and who has five or more years of participating service after January 1, 1967, the average highest annual compensation paid to such member on or after January 1, 1967, for any five years of participating service preceding retirement or termination of employment, or, in any case, if participating service is less than five years, then the average annual compensation paid to the member during the full period of participating service, or, in any case, if the member has less than one calendar year of participating service such member's final average salary shall be computed by multiplying such member's highest monthly salary received in that year by 12; in the case of a member who became a member under subsection (3) of K.S.A. 74-4925 and amendments thereto, or who became a member with a participating employer as defined in subsection (3) of K.S.A. 74-4931 and amendments thereto and who elects to have compensation paid in other than 12 equal installments, such compensation shall be annualized as if the member had elected to receive 12 equal installments for any such periods preceding retirement; in the case of a member who retires after July 1, 1987, the average highest annual compensation paid to such member for any four years of participating service preceding retirement or termination of employment; in the case of a member who retires on or after July 1, 1993, who was first hired as an employee, as defined in subsection (14) of K.S.A. 74-4902 and amendments thereto, prior to July 1, 1993, the average highest annual compensation, as defined in subsection (9), paid to such member for any four years of participating service preceding retirement or termination of employment or the average highest annual salary, as defined in subsection (34), paid to such member for any three years of participating service preceding retirement or termination of employment, whichever is greater; and in the case of a member who retires on or after July 1, 1993, and who is first hired as an employee, as defined in subsection (14) of K.S.A. 74-4902 and amendments thereto, on or after July 1, 1993, the average highest annual salary, as defined in subsection (34), paid to such member for any three years of participating service preceding retirement or termination of employment. Final average salary shall not include any purchase of participating service credit by a member as provided in subsection (2) of K.S.A. 74-4919h and amendments thereto which is completed within five years of retirement. For any application to purchase or repurchase service credit for a certain period of service as provided by law received by the system after May 17, 1994, for any member who will have contributions deducted from such member's compensation at a percentage rate equal to two or three times the employee's rate of contribution or will begin paying to the system a lump-sum amount for such member's purchase or repurchase and such deductions or lumpsum payment commences after the commencement of the first payroll period in the third quarter, ``final average salary'' shall not include any amount of compensation or salary which is based on such member's purchase or repurchase. Any application to purchase or repurchase multiple periods of service shall be treated as multiple applications. For purposes of this subsection, the date that such member is first hired as an employee for members who are employees of employers that elected to participate in the system on or after January 1, 1994, shall be the date that such employee's employer elected to participate in the system; March 21, 1997 505 (18) ``fiscal year'' means, for the Kansas public employees retirement system, the period commencing July 1 of any year and ending June 30 of the next; (19) ``Kansas public employees retirement fund'' means the fund created by this act for payment of expenses and benefits under the system and referred to as the fund; (20) ``leave of absence'' means a period of absence from employment without pay, authorized and approved by the employer, and which after the effective date does not exceed one year; (21) ``member'' means an eligible employee who is in the system and is making the required employee contributions, or; any former employee who has made the required contributions to the system and has not received a refund, if such member is within five years of their termination of employment with a participating employer; or any former employee who has made the required contributions to the system, has not received a refund and has been granted a vested benefit; (22) ``military service'' means service in the armed forces of the United States or in the commissioned corps of the United States public health service, which service is immediately preceded by a period of employment as an employee or by the entering into of an employment contract with a participating employer and is followed by return to employment as an employee with the same or another participating employer within 12 months immediately following discharge from such military service, except that if the board determines that such return within 12 months was made impossible by reason of a serviceconnected disability, the period within which the employee must return to employment with a participating employer shall be extended not more than two years from the date of discharge or separation from military service; (23) ``normal retirement date'' means the date on or after which a member may retire with full retirement benefits pursuant to K.S.A. 74-4914 and amendments thereto; (24) ``participating employer'' means an eligible employer who has agreed to make contributions to the system on behalf of its employees; (25) ``participating service'' means the period of employment after the entry date for which credit is granted a member; (26) ``prior service'' means the period of employment of a member prior to such member's the entry date for which credit is granted a member under this act; (27) ``prior service annual salary'' means the highest annual salary, not including any amounts received as payment for overtime or as reimbursement for travel or moving expense, received for personal services by the member from the current employer in any one of the three calendar years immediately preceding January 1, 1962, or the entry date of the employer, whichever is later, except that if a member entered the employment of the state during the calendar year 1961, the prior service annual salary shall be computed by multiplying such member's highest monthly salary received in that year by 12; (28) ``retirant'' means a member who has retired under this system; (29) ``retirement benefit'' means a monthly income or the actuarial equivalent thereof paid in such manner as specified by the member pursuant to this act or as otherwise allowed to be paid at the discretion of the board, with benefits accruing from the first day of the month coinciding with or following retirement and ending on the last day of the month in which death occurs. Upon proper identification a surviving spouse may negotiate the warrant issued in the name of the retirant; (30) ``retirement system'' or ``system'' means the Kansas public employees retirement system as established by this act and as it may be amended; (31) ``social security'' means the old age, survivors and disability insurance section of the federal social security act; (32) ``total disability'' means a physical or mental disability which prevents the member from engaging, for remuneration or profit, in any occupation for which the member is reasonably suited by education, training or experience; (33) ``trust'' means an express trust, created by a trust instrument, including a will, designated by a member to receive payment of the insured death benefit under K.S.A. 744927 and amendments thereto and payment of the member's accumulated contributions under subsection (1) of K.S.A. 74-4916 and amendments thereto. A designation of a trust shall be filed with the board. If there is a designated trust at the time of the member's 506 JOURNAL OF THE HOUSE death, the insured death benefit for the member under K.S.A. 74-4927 and amendments thereto and the member's accumulated contributions under subsection (1) of K.S.A. 744916 and amendments thereto shall be paid to the trust in lieu of the member's beneficiary. If no will is admitted to probate within six months after the death of the member or no trustee qualifies within such six months or if the designated trust fails, for any reason whatsoever, the insured death benefit under K.S.A. 74-4927 and amendments thereto and the member's accumulated contributions under subsection (1) of K.S.A. 74-4916 and amendments thereto shall be paid in accordance with the provisions of subsection (7) of this section as in other cases where there is no named beneficiary living at the time of the member's death and any payments so made shall be a full discharge and release to the system from any further claims; and (34) ``salary'' means all salary and wages payable to a member for personal services performed for a participating employer, including maintenance or any allowance in lieu thereof provided a member as part of salary. Salary shall not include reimbursement for travel or moving expenses, payment for accumulated sick leave or vacation or annual leave, severance pay or any other payments to the member determined by the board to not be payments for personal services performed for a participating employer constituting salary or on and after July 1, 1994, payment pursuant to an early retirement incentive program made prior to the retirement of the member. When the salary of a member who remains in substantially the same position during any two consecutive years of participating service used in calculating final average salary is increased by an amount which exceeds 15%, then the amount of such increase which exceeds 15% shall not be included in salary. Any contributions by such member on the amount of such increase which exceeds 15% which is not included in compensation shall be returned to the member. Unless otherwise provided by law, salary shall include any amounts for tax sheltered annuities or deferred compensation plans. Salary shall include amounts under sections 403b, 457 and 125 of the federal internal revenue code of 1986 and, as the board deems appropriate, any other section of the federal internal revenue code of 1986 which defers or excludes amounts from inclusion in income. In any case, if participating service is less than three years, then the average annual salary paid to the member during the full period of participating service, or, in any case, if the member has less than one calendar year of participating service such member's final average salary shall be computed by multiplying such member's highest monthly salary received in that year by 12.''; And by renumbering sections accordingly; On page 7, after line 5, by inserting: ``Sec. 7. K.S.A. 1996 Supp. 74-4908 is hereby amended to read as follows: 74-4908. (1) The board shall appoint an executive secretary and shall establish the compensation therefor. Subject to the direction of the board, the executive secretary shall be the managing officer of the system and as such shall have charge of the office, records and supervision and direction of the employees of the system. The executive secretary shall be in the unclassified service under the Kansas civil service act. (2) The executive secretary shall recommend to the board the administrative organization, the number and qualifications of employees necessary to carry out the intent of this act and the directions of the board. Upon approval of the board, the executive secretary is authorized to employ such persons in accordance with the Kansas civil service act. (3) The board of trustees shall select and employ or retain a qualified actuary who shall serve at its pleasure as its technical advisor on matters regarding operation of the system. The actuary shall: (a) Make an annual valuation of the liabilities and reserves of the system, and a determination of the contributions required by the system to discharge its liabilities and administrative costs under this act, and recommend to the board rates of employer contributions required to establish and maintain the system on an actuarial reserve basis. Such recommended employer contributions shall not be based on any other purpose outside of the needs of the system as prescribed by this subsection. (b) As soon after the effective date as practicable and once every three years thereafter, make a general investigation of the actuarial experience under the system including March 21, 1997 507 mortality, retirement, employment turnover and interest, and recommend actuarial tables for use in valuations and in calculating actuarial equivalent values based on such investigation. (c) Cooperate with and provide any assistance to the actuary, the legislative coordinating council and the joint committee on pensions, investments and benefits related to the independent actuarial audit and evaluation as provided in K.S.A. 1996 Supp. 74-4908a and amendments thereto. (d) Perform such other duties as may be assigned by the board. (4) The attorney general of the state shall furnish such legal services as may be necessary upon receipt of a request from the board, except that legal services may be furnished by other counsel as the board in its discretion deems necessary and prudent. (5) The board shall employ or retain qualified investment counsel or counselors or may negotiate with a trust company to assist and advise in the judicious investment of funds as herein provided. (6) The board may appoint a deputy executive secretary, an investment officer, an investment analyst, a real estate manager, a direct placement manager, a chief fiscal officer, a member services officer, an attorney, an assistant investment officer and an information resource officer to advise and assist the board in the performance of powers, duties and functions relating to the management and investment of the fund and in such other matters as may be directed by the board. Such appointed officers and employees shall be in the unclassified service under the Kansas civil service act. The compensation of such appointed officers and employees shall be established by the board.''; And by renumbering sections accordingly; On page 10, after line 17, by inserting: ``Sec. 10. K.S.A. 1996 Supp. 74-4913 is hereby amended to read as follows: 74-4913. (1) Prior service shall be credited as follows: (a) A member shall receive full credit for continuous employment prior to the entry date with such member's employer on the entry date. If the employee was also employed on March 15, 1961, by the employer who is the employee's employer on the employee's entry date of the year immediately preceding the entry date of that employer, then all such previous employment, whether or not continuous, shall be credited; otherwise no credit shall be granted for employment prior to a break in continuous employment. Any member or retirant who has been credited with prior service as hereinbefore provided and who was employed by any participating employer on March 15, 1961 of the year immediately preceding the entry date of that employer, may apply to the board on such forms as it may prescribe for prior service credit with a participating employer other than the member's entry date employer. Upon receipt of written verification of such employment from the participating employer, the board may shall grant such additional prior service credit and with respect to a retirant, shall adjust the amount of the retirement benefit accordingly commencing with the next monthly benefit payment due following receipt of the written verification, except that such retirant shall not be entitled to any retroactive adjustment in the amount of such retirement benefit as a result of the board granting such additional prior service credit. In the case of any person other than a retirant receiving a retirement benefit, such person may make application for an adjustment in the benefit amount in the same manner as a member or retirant, and in such case the adjustment in the benefit amount shall be determined by the board upon the advice of the actuary, and shall commence with the next monthly benefit payment due following receipt of the written verification; (b) leaves of absence and military service shall not be counted as breaks in continuous employment; however, military service which is immediately preceded and followed by employment with a participating employer shall be credited, except that after July 1, 1974, not more than five years' credit for military service shall be granted hereunder, but leaves of absence shall not be credited; (c) any member who was employed in the Kansas state employment service, now a section of the Kansas division of employment security, during any of the time the Kansas state employment service was loaned by the state to the federal government (January 1, 1942, for the duration of the emergency period of world war II, which service was returned to the state by the federal government effective November 16, 1946) shall be entitled to 508 JOURNAL OF THE HOUSE prior service credit for the time so employed during the period stated for any service rendered under the jurisdiction of the United States employment service for the federal government in like manner as if the employment service had remained under the jurisdiction of the state of Kansas; (d) any member who is not otherwise eligible for service credit as provided for in subsection (1)(a) may be granted credit for the service upon the attainment of 38 quarters of participating service; (e) any member who was employed by the university of Wichita prior to July 1, 1964, shall be entitled to prior service credit for such time of employment under the Kansas public employees retirement system, when such employment is not the basis for other pension rights. (2) Participating service shall be credited as follows: (a) A member shall receive credit for participating service with a participating employer in accordance with the rules and regulations established by the board of trustees, except that no more than one calendar quarter of participating service shall be credited for any employment within any one calendar quarter; (b) leaves of absence and military service shall not count as a break in continuous employment provided the member leaves such member's accumulated contribution on deposit with the fund; however, the period of military service shall be credited, except that after July 1, 1974, not more than five years' credit for military service shall be granted hereunder, but leaves of absence shall not be credited. Employees who enter the military service from their employment after the employer's entry date and who have not completed one year of service at the time of their entry into the military service, shall not become members of the retirement system until they return to the employment of that participating employer. In the case of such employee whose combined public employment and military service does not equal one year at the time of such employee's return to employment, the date of membership shall be the first day of the payroll period coinciding with or following the completion of one combined public employment and military year of service. Such service shall be granted in accordance with this section; (c) a period of retirement under the system or a period of total disability, immediately followed by employment with a participating employer, shall not count as a break in continuous employment, except that such periods while not employed shall not be credited as participating service; (d) termination of employment, followed by employment with a participating employer within five years after such termination, does not constitute a break in continuous employment if such person has not withdrawn such person's accumulated contribution. Such period while not employed shall not be credited as participating service. (3) In determining the number of years of credited prior service or participating service a fractional year of six months or more shall be considered as one year and a fractional year of less than six months shall be disregarded.''; And by renumbering sections accordingly; On page 11, in line 19, before ``in'' the first time it appears by inserting ``during calendar year 1997,''; also in line 19, by striking ``$11,280'' and inserting ``$13,500''; also in line 19, by striking all after ``more''; in line 20, by striking ``one such calendar year'' and inserting ``; during calendar year 1998, in an amount equal to $14,500 or more; during calendar year 1999, in an amount equal to $15,500 or more; during calendar year 2000, in an amount equal to $17,000 or more; during calendar year 2001, in an amount equal to $25,000 or more; or during calendar year 2002, in an amount equal to $30,000 or more''; after line 41, by inserting: ``Sec. 12. K.S.A. 1996 Supp. 74-4914e is hereby amended to read as follows: 74-4914e. (1) As used in this section: (a) ``Correctional employee'' means any member of the system who is a security officer or other employee of the department of corrections and who is in a position for which the duties and responsibilities involve regular contact with inmates as certified by the secretary of corrections; March 21, 1997 509 (b) ``disability'' means the total inability to perform permanently the duties of the position of a correctional employee in which the correctional employee was employed at the time of disability; (c) ``service-connected'' means any physical or mental disability resulting from external force, violence or disease occasioned by an act of duty as a correctional employee and includes, for any correctional employee after five years of credited service, any death or disability resulting from a heart disease or disease of the lung or respiratory tract, except that in the event that the correctional employee ceases to be a contributing member except by reason of a service-connected disability for a period of six months or more and then again becomes a contributing member the provision relating to death or disability resulting from a heart disease or disease of the lung or respiratory tract shall not apply until such correctional employee has again become a contributing member for a period of not less than two years or unless clear and precise evidence is presented that the heart disease or disease of the lung or respiratory tract was in fact occasioned by an act of duty as a correctional employee; and (d) ``final average salary'' means the average highest annual compensation paid to a correctional employee for any three of the last five years of participating service immediately preceding the date of disability, or if participating service is less than three years, then the average annual compensation paid to the correctional employee during the full period of participating service or if a correctional employee has less than one calendar year of participating service the correctional employee's final average salary shall be computed by multiplying the correctional employee's highest monthly salary received in that year by 12. (2) If any active contributing correctional employee becomes totally and permanently disabled due to service-connected causes as defined in subsection (1), such correctional employee shall be retired and the following benefits shall become payable and shall continue until the correctional employee's death or until the correctional employee recovers from the disability if a report of the event in a form acceptable to the board is filed in the office of the executive secretary of the board within 220 days after the date of the event or act of duty causing such disability and an application for such benefit, in such form and manner as the board shall prescribe, is filed by the correctional employee or the correctional employee's authorized representative in the office of the executive secretary of the board within two years of the date of disability: (a) The correctional employee shall receive a retirement benefit equal to 50% of the correctional employee's final average salary. Such benefit shall accrue from the day upon which the correctional employee ceases to draw compensation. (b) Each of the correctional employee's unmarried children under the age of 18 years or each of the correctional employee's children under the age of 23 years who are full-time students as provided in K.S.A. 74-49,117 and amendments thereto shall receive an annual benefit equal to 10% of the correctional employee's final average salary. Such benefit shall accrue from the day upon which the correctional employee ceases to draw compensation and shall end on the first day of the month in which each such child or children attains the age of 18 years, die or marry, whichever occurs earlier or in which each such child or children attains the age of 23 years, if such child or children are full-time students as provided in K.S.A. 74-49,117 and amendments thereto. (c) In no case shall the total benefits payable under paragraphs (a) and (b) of this subsection (2) be in excess of 75% of the correctional employee's final average salary. (d) In the event a correctional employee who is retired under paragraph (a) of this subsection (2), dies within two years after the date of such retirement, then benefits may be payable under subsection (2) of K.S.A. 74-4916 and amendments thereto. (e) In the event a correctional employee who is retired under paragraph (a) of this subsection (2), dies more than two years after the date of such retirement, and the proximate cause of such death is the service-connected cause from which the disability resulted, then benefits may be payable under subsection (2) of K.S.A. 74-4916 and amendments thereto. (f) In the event a correctional employee who is retired under subsection (2) dies after the date of retirement and no benefits are payable under paragraphs (d) and (e) the following benefits shall be payable: 510 JOURNAL OF THE HOUSE (i) To the correctional employee's spouse, if lawfully wedded to the correctional employee at the time of the correctional employee's death, a lump-sum benefit equal to 50% of the correctional employee's final average salary at the time of the correctional employee's retirement. (ii) To the correctional employee's spouse, if lawfully wedded to the correctional employee at the time of the correctional employee's death, an annual benefit equal to 50% of the correctional employee's retirement benefit payable in monthly installments, to accrue from the first day of the month following the correctional employee's date of death and ending on the first day of the month in which the spouse dies. If there is no surviving spouse, or if after the death of the spouse there remain one or more children under the age of 18 years or one or more children under the age of 23 years who is a full-time student as provided in K.S.A. 74-49,117, and amendments thereto, the annual spouse's benefit shall be payable in equal shares to such children and each child's share shall end on the first day of the month in which such child attains the age of 18 years or dies, whichever occurs earlier or in which such child attains the age of 23 years, if such child is a full-time student as provided in K.S.A. 74-49,117, and amendments thereto. The provisions of this subsection shall apply in all cases of such correctional employees who die after October 1, 1996. (3) If any correctional employee who is an active contributing member prior to such correctional employee's normal retirement becomes totally and permanently disabled for a period of 180 days from causes not service-connected, and not as the result of a willfully negligent or intentional act of the correctional employee, such correctional employee shall be retired and the following benefit shall become payable and shall continue until the correctional employee's death or until the correctional employee recovers from such disability whichever occurs first if a report of the disability in a form acceptable to the board is filed in the office of the executive secretary of the board within 220 days after the date of the commencement of such disability and if an application for such benefit in such form and manner as the board shall prescribe is filed in the office of the executive secretary of the board within two years of the date of disability: A retirement benefit equal to 2% of the correctional employee's final average salary multiplied by the number of years of credited service, except that such retirement benefit shall be at least equal to 25% of the member's final average salary but not to exceed the amount of the retirement benefit provided in paragraph (a) of subsection (2). Such benefit shall not become payable until satisfactory evidence is presented to the board that the correctional employee is and has been for a period of 180 days totally and permanently disabled, but benefits shall accrue from the day upon which the correctional employee ceases to draw compensation. (4) Any correctional employee who is employed for compensation by an employer other than the department of corrections and whose disability is incurred in the course of such other employment shall not be eligible for any of the benefits provided in subsection (3). (5) If a correctional employee becomes totally and permanently disabled and no benefits are payable under subsections (2) or (3), the sum of the correctional employee's accumulated contributions shall be paid to the correctional employee. (6) Any correctional employee receiving benefits under this section shall submit to medical examination, not oftener than annually, by one or more physicians or any other practitioners of the healing arts holding a valid license issued by Kansas state board of healing arts, as the board of trustees may direct. If upon such medical examination the examiners report to the board that the retirant is physically able and capable of resuming employment with the participating employer from whose employment the correctional employee retired, the disability benefits shall terminate. A retirant who has been receiving benefits under the provisions of this section and who returns to employment of a participating employer shall immediately commence accruing service credit which shall be added to that which has been accrued by virtue of previous service. (7) Any retirant who has been receiving benefits under the provisions of this section for a period of five years shall be deemed finally retired and shall not be subject to further medical examinations, except that if the board of trustees shall have reasonable grounds to March 21, 1997 511 question whether the retirant remains totally and permanently disabled, a further medical examination or examinations may be required. (8) Refusal or neglect to submit to examination as provided in subsection (6) shall be sufficient cause for suspending or discontinuing benefit payments under this section and if such refusal or neglect shall continue for a period of one year, the correctional employee's rights in and to all benefits under the system may be revoked by the board. (9) Any retirement benefits payable under the provisions of this section shall be in lieu of all other benefits under the system. (10) Each correctional employee shall report to such member's participating employer any event or act of duty causing disability within 200 days after such event or act of duty. The department of corrections shall file in the office of the executive secretary of the board, in a form acceptable to the board, a report of the event or act of duty causing disability within 220 days after the event or act of duty. (11) Benefits payable under this section shall be reduced by the original amount of any disability benefits received under the federal social security act or the workers compensation act. For any correctional employee already retired on the effective date of this act, no reduction of the original social security benefits shall be applicable to benefits paid prior to the effective date of this act. In no case shall a correctional employee who is entitled to receive benefits under this section receive less than $100 per month. (12) The provisions of this section shall apply to disabilities occurring after June 30, 1982, and prior to July 1, 1995. At the direction of the board of trustees, the actuary shall conduct an experience evaluation of benefits payable under this section and the board shall provide copies of such study to the governor and members of the legislature. (13) The provisions of K.S.A. 74-4927 and amendments thereto relating to insured disability benefits shall not be applicable to correctional employees subject to the provisions of this section. (14) In the event a correctional employee who is retired under subsection (3) dies after the date of retirement and no benefits are payable under that subsection, the following benefits shall be payable; (i) To the correctional employee's spouse, if lawfully wedded to the correctional employee at the time of the correctional employee's death, a lump-sum benefit equal to 50% of the correctional employee's final average salary at the time of the correctional employee's retirement. (ii) To the correctional employee's spouse, if lawfully wedded to the correctional employee at the time of the correctional employee's death, an annual benefit equal to 50% of the correctional employee's retirement benefit payable in monthly installments, to accrue from the first day of the month following the correctional employee's date of death and ending on the first day of the month in which the spouse dies. If there is no surviving spouse, or if after the death of the spouse there remain one or more children under the age of 18 years or one or more children under the age of 23 years who is a full-time student as provided in K.S.A. 74-49,117, and amendments thereto, the annual spouse's benefit shall be payable in equal shares to such children and each child's share shall end on the first day of the month in which such child attains the age of 18 years or dies, whichever occurs earlier or in which such child attains the age of 23 years, if such child is a full-time student as provided in K.S.A. 74-49,117, and amendments thereto. The provisions of this subsection shall apply in all cases of such correctional employees who die after October 1, 1996. Sec. 13. K.S.A. 1996 Supp. 74-4919a is hereby amended to read as follows: 74-4919a. (1) An employee of a participating employer who becomes a member as provided in K.S.A. 74-4911 and amendments thereto, after completion of one year of continuous employment as therein provided may purchase participating service credit for such year of employment by making application therefor. Such application and payment may be made at any time after the employee becomes a member and continues to be employed by a participating employer. Any member of the system who has not retired may purchase such service credit by paying the then present value of the retirement benefits based on such service by means of a single lump sum payment in the amount determined by the actuary using the member's attained age and the actuarial assumptions and tables currently in use by this retirement 512 JOURNAL OF THE HOUSE system. If an employee was employed before the participating employer's entry date and did not become a member until the first day of the month or the first day of the first payroll period, whichever is applicable, coinciding with or following the completion of one year continuous employment, the member may purchase participating service credit for the period from the participating employer's entry date until such member became a member by paying to the system the then present value of the retirement benefits based on such service by means of a single lump sum payment in the amount determined by the actuary using the member's attained age and the actuarial assumptions and tables currently in use by this retirement system. Notwithstanding any other provision of this subsection, if an employee purchases such participating service credit within 12 months of such employee's membership in the system, such employee may purchase such participating service credit by making application therefor and paying to the system a lump sum amount equivalent to 4% of the compensation paid to such member for personal services during such period. If an employee was employed for a partial year after the participating employer's entry date and did not become a member at that time, but became a member at a later date, the member may purchase participating service credit for such partial year of employment by paying the then present value of the retirement benefits based on such service by means of a single lump sum payment in the amount determined by the actuary using the member's attained age and the actuarial assumptions and tables currently in use by this retirement system. (2) Any employee of the state of Kansas who was receiving or was eligible for assistance by the state board of regents in the purchase of a retirement annuity under K.S.A. 74-4925 and amendments thereto, and who became ineligible for such assistance prior to the effective date of this act because such employee's position was reclassified to a position in the classified service under the Kansas civil service act, or who became ineligible for such assistance because such person accepted and transferred to a position in the classified service under the Kansas civil service act, and who becomes a member of the system on the first day of the payroll period coinciding with or following the effective date of this act in accordance with subsection (5) of K.S.A. 74-4911 and amendments thereto, may purchase participating service credit for the period of employment from the effective date of such reclassification or transfer to the date of such employee's membership in the system. Such employee may purchase such participating service credit by making application therefor and paying to the system a lump-sum amount equivalent to 4% of the compensation paid to such member for personal services during such period by the state of Kansas or as provided in subsection (3). Such application and payment may be made at any time after the employee becomes a member and continues to be employed by a participating employer. (3) Except as otherwise provided in this subsection, any member of the retirement system may purchase participating service credit for employment service as described in this section, if first commenced prior to January 1, 1996, by electing to effect such purchase by means of having employee contributions as provided in K.S.A. 74-4919 and amendments thereto deducted from such member's compensation at a percentage rate equal to two times or three times the employee's rate of contribution as provided in K.S.A. 74-4919 and amendments thereto for such periods of service, in lieu of a lump-sum amount as provided in this section. Such deductions shall commence at the beginning of the quarter following such election and shall remain in effect until all quarters of such service have been purchased. Any person may make any such purchase as described in this section, if first commenced in calendar year 1996 or thereafter, at an additional rate of contribution, in addition to the employee's rate of contribution as provided in K.S.A. 74-4919 and amendments thereto, based upon the member's attained age at the time of purchase and using actuarial assumptions and tables in use by the retirement system at such time of purchase, for such periods of service, in lieu of a lump-sum amount as provided in this section. Such additional rate of contribution shall commence at the beginning of the quarter following such election and shall remain in effect until all quarters of such service have been purchased. Notwithstanding any other provision of this subsection, any member of the retirement system, within 12 months of such member's membership date in the system, may purchase participating service credit for employment service as described in this section, by electing to effect such purchase by means of having employee contributions as provided in March 21, 1997 513 K.S.A. 74-4919, and amendments thereto, deducted from such member's compensation at a percentage rate equal to two times or three times the employee's rate of contribution as provided in K.S.A. 74-4910, and amendments thereto, for such periods of service, in lieu of a lump sum amount as provided in this section. Such deductions shall commence at the beginning of the quarter following such election and shall remain in effect until all quarters of such service have been purchased. Such purchase must be completed within 24 months of such membership date in the system. Sec. 14. K.S.A. 1996 Supp. 74-4919c is hereby amended to read as follows: 74-4919c. Except as otherwise provided in this section, any such member having previously lost credit for periods of participating service, because of termination of employment and withdrawal of contributions, if first commenced prior to January 1, 1996, may elect in writing to such member's participating employer and the retirement system to have member contributions deducted from such member's compensation at a percentage rate equal to two times or three times the employee's rate of contribution as provided in K.S.A. 74-4919 and amendments thereto for such periods of service. Such election may be made at any time prior to retirement and the attainment of age 70 and shall commence on the first day of the payroll period for which compensation shall be paid in the employer's quarterly reporting period coinciding with or following such election. Any member making such an election shall receive credit for one additional quarter of participating service credit for each quarter during which the contribution rate at a percentage rate equal to two times the employee's rate of contribution as provided in K.S.A. 74-4919 and amendments thereto for such periods of service, is in effect and two additional quarters of participating service credit for each quarter during which the contribution rate at a percentage rate equal to three times the employee's rate of contribution as provided in K.S.A. 74-4919 and amendments thereto, is in effect. Any person may make any such purchase as described in this section, if first commenced in calendar year 1996 or thereafter, at an additional rate of contribution, in addition to the employee's rate of contribution as provided in K.S.A. 74-4919 and amendments thereto, based upon the member's attained age at the time of purchase and using actuarial assumptions and tables in use by the retirement system at such time of purchase, for such periods of service, in lieu of a lump-sum amount as provided in this section. Such additional rate of contribution shall commence at the beginning of the quarter following such election and shall remain in effect until all quarters of such service have been purchased. In no case shall the additional credit so granted be greater than the total participating service credit forfeited on the earlier termination of employment and withdrawal of contributions. Such contribution rates shall not remain in effect longer than the period for which additional participating service credit may be granted. Sec. 15. K.S.A. 1996 Supp. 74-4919h is hereby amended to read as follows: 74-4919h. (1) In addition to any military service credited under the provisions of K.S.A. 74-4913 or 74-4936 and amendments thereto, or in the event that an active contributing member does not qualify for credit for military service as defined in subsection (22) of K.S.A. 74-4902 and amendments thereto, such member may purchase participating credit for periods of active service in the armed forces of the United States or in the commissioned corps of the United States public health service and for periods of service required to fulfill the requirements of section 651 of title 10, United States code, which are not otherwise creditable, which when added to any creditable military service do not exceed six years. Except as provided in subsection (4)(a) for such purchase of participating credit for such periods of such military service which is the basis for military pension rights, such member shall be entitled to purchase one quarter of participating service credit for each year of service required to fulfill the requirements of section 651 of title 10, United States code. Except as otherwise provided in this section, such purchase shall be effected by the member submitting proof of such service acceptable to the board and, if first commenced prior to January 1, 1996, electing in writing to have employee contributions as provided in K.S.A. 74-4919 and amendments thereto deducted from such member's compensation at a percentage rate equal to two times or three times the employee's rate of contribution as provided in K.S.A. 74-4919 and amendments thereto for such periods of service. Such deductions shall commence at the beginning of the quarter following such election and shall remain in effect until all of the full quarters of such service have been purchased. Any 514 JOURNAL OF THE HOUSE person may make any such purchase as described in this section, if first commenced in calendar year 1996 or thereafter, at an additional rate of contribution, in addition to the employee's rate of contribution as provided in K.S.A. 74-4919 and amendments thereto, based upon the member's attained age at the time of purchase and using actuarial assumptions and tables in use by the retirement system at such time of purchase, for such periods of service, in lieu of a lump-sum amount as provided in this section. Such additional rate of contribution shall commence at the beginning of the quarter following such election and shall remain in effect until all quarters of such service have been purchased. (2) (a) Such purchase of participating service credit must be completed prior to such member's retirement. (b) For members purchasing such participating service credit on or after July 1, 1993, whose purchase is completed within five years before such member's retirement, such member shall pay the actuarially determined amount by means of a single lump-sum payment or equal annual payments which shall be completed prior to retirement. The lumpsum payment or annual payments shall be determined by the system's actuary by using the member's current annual salary at the time, actuarial assumptions and tables currently in use by the system and the member's attained age. No participating employer shall pay all or any part of the cost of service credit purchased by a member under this subsection. Any member who purchases such participating service credit and who does not make the lumpsum payment or annual payments as required by this subsection shall have any previously credited service under this section voided and such member shall be refunded such member's payments previously made for such purchase plus interest. The provisions of this subsection shall not apply to any member who is employed by an institution that is closed or abolished or otherwise ceases operations or that is scheduled for such closure, abolition or cessation of operations and has a budget reduction imposed that is associated with such closure, abolition or cessation of operations, and who is laid off from employment with such institution for the reason of such closure, abolition or cessation. As used in this subsection, ``institution'' means Topeka state hospital or Winfield state hospital and training center; and ``laid off'' means, in the case of a state officer or employee in the classified service under the Kansas civil service act, being laid off under K.S.A. 75-2948 and amendments thereto and, in the case of a state officer or employee in the unclassified service under the Kansas civil service act, being terminated from employment with the state agency by the appointing authority, except that ``laid off'' shall not include any separation from employment pursuant to budget reduction or expenditure authority reduction and reduction of F.T.E. positions under K.S.A. 1996 Supp. 75-6801 and amendments thereto. (3) In the event such member has elected to purchase participating service credit as provided in K.S.A. 74-4919a to 74-4919e, inclusive, and any amendments thereto, the increased employee contributions and purchase of participating service credit provided herein shall not commence until after the purchase of participating service credit under K.S.A. 74-4919a to 74-4919e, inclusive, and any amendments thereto, has been completed. If a member terminates employment before completing the purchase of all participating service credit as such member may be entitled to, such member shall only receive such credit for those full quarters as the percentage rate equal to two times or three times the employee's rate of contribution as provided in K.S.A. 74-4919 and amendments thereto or those full quarters as the additional rate of contribution, in addition to the employee's rate of contribution as provided in K.S.A. 74-4919 and amendments thereto has been deducted from such member's compensation. (4) (a) Any member of the system who has not yet retired may purchase participating service credit for military service as described in this section which is the basis for military pension rights at an additional rate of contribution in addition to the employee's rate of contribution as provided in K.S.A. 74-4919 and amendments thereto, based upon the member's attained age at the time of purchase and using actuarial assumptions and tables in use by the retirement system at the time of such purchase. Such additional rate of contribution shall commence at the beginning of the quarter following such election and shall remain in effect until all quarters of such service have been purchased. Any such member may purchase participating service credit for military service as described in this section by electing to effect such purchase by means of a single lump-sum payment in lieu March 21, 1997 515 of employee contributions as provided in this section. The lump-sum payment shall be an amount determined by the actuary using the member's then current annual rate of compensation, or if not actively employed, the member's annual rate of compensation when last participating, the actuarial assumptions and tables currently in use by the retirement system and the member's attained age. No participating employer shall pay all or any part of the cost of any additional participating service credit to be purchased by means of a lumpsum payment by a member under this section. (b) Any member of the retirement system who has not retired may purchase participating service credit for military service as described in this section which is not the basis for military pension rights by electing to effect such purchase by means of a single lump-sum payment in lieu of employee contributions as provided in this section. The lumpsum payment shall be an amount determined by the actuary using the member's then current annual rate of compensation, or if not actively employed, the member's annual rate of compensation when last participating, the actuarial assumptions and tables currently in use by the retirement system and the member's attained age. No participating employer shall pay all or any part of the cost of any additional participating service credit to be purchased by means of a lump-sum payment by a member under this section.''; And by renumbering sections accordingly; On page 16, in line 19, before ``in'' the first time it appears, by inserting ``, during calendar year 1997,''; also in line 19, by striking ``$11,280'' and inserting ``$13,500''; also in line 19, by striking ``in any one such cal-''; in line 20, by striking ``endar year'' and inserting ``; during calendar year 1998, in an amount equal to $14,500 or more; during calendar year 1999, in an amount equal to $15,500 or more; during calendar year 2000, in an amount equal to $17,000 or more; during calendar year 2001, in an amount equal to $25,000 or more; or during calendar year 2002, in an amount equal to $30,000''; On page 17, in line 11, before ``in'' the first time it appears, by inserting ``, during calendar year 1997,''; also in line 11, by striking ``$11,280'' and inserting ``$13,500''; also in line 11, by striking ``in any one such cal-''; in line 12, by striking ``endar year'' and inserting ``; during calendar year 1998, in an amount equal to $14,500 or more; during calendar year 1999, in an amount equal to $15,500 or more; during calendar year 2000, in an amount equal to $17,000 or more; during calendar year 2001, in an amount equal to $25,000 or more; or during calendar year 2002, in an amount equal to $30,000''; On page 19, by striking all in line 43; On page 20, by striking all in lines 1 through 28 and inserting: ``New Sec. 21. (1) Any payment made to a named beneficiary as provided in this section, shall be a full discharge and release to the system from any further claims. Any payment made to a beneficiary as provided in clauses (A), (B), (C), (D), (E) or (F) of subsection (7) of K.S.A. 74-4902 or in clauses (1), (2), (3), (4), (5) or (6) of subsection (k) of K.S.A. 202601, and amendments thereto, as determined by the board, shall be a full discharge and release to the system from any further claims. Whenever any payment is payable to more than one beneficiary such payment shall be made to such beneficiaries jointly. (2) Any benefits payable to a beneficiary or beneficiaries who are incompetent shall be made in the name of the beneficiary or beneficiaries and delivered to the lawfully appointed conservator of such beneficiaries who was nominated by will or as otherwise provided by law, except that in those cases where the benefit involves an amount not to exceed $500, the board is hereby authorized in its discretion without the appointment of a conservator or in the giving of a bond to pay such amount as is due to the incompetent person or persons themselves. (3) Any lump-sum benefits payable to a beneficiary or beneficiaries who are minor children and which amount totals $10,000 or more shall be made in the name of the beneficiary or beneficiaries and delivered to the lawfully appointed conservator of such beneficiaries who was nominated by will or as otherwise provided by law except that in those cases where the benefit involves an amount not to exceed $500, the board is hereby authorized in its discretion without the appointment of a conservator or the giving of a bond to pay such amount as is due to the minor or minors themselves. If no conservator is lawfully appointed, the system will credit interest at 4% on all benefits due and payable and shall pay all benefits plus interest to the beneficiary or beneficiaries who are minor children when 516 JOURNAL OF THE HOUSE they attain age 18 years. Any benefits payable to a beneficiary or beneficiaries who are minor children and which amount which totals more than $500 but less than $10,000, may be made in the name of the beneficiary or beneficiaries and paid under the uniform transfers to minors act as provided in K.S.A. 38-1701 et seq. and amendments thereto. (4) Any monthly benefits payable to a beneficiary or beneficiaries who are minor children shall be made in the name of the beneficiary or beneficiaries and delivered to the lawfully appointed conservator of such beneficiaries who was nominated by will or as otherwise provided by law. If no conservator is lawfully appointed, the system will credit interest at 4% on all benefits due and payable and shall pay all benefits plus interest to the beneficiary or beneficiaries who are minor children when they attain age 18 years. (5) As used in this section, ``system'' means the Kansas public employees retirement system, the Kansas police and firemen's retirement system and the retirement system for judges.''; And by renumbering sections accordingly; Also on page 20, in line 29, after ``20-2610'' by inserting ``, 20-2620''; also in line 29, after ``Supp.'' by inserting ``20-2601, 74-4902,''; also in line 29, after ``74-4904,'' by inserting ``744908,''; in line 30, after ``74-4911f,'' by inserting ``74-4913,''; also in line 30, after ``74-4914,'' by inserting ``74-4914e, 74-4919a, 74-4919c, 74-4919h,''; On page 1, in the title, in line 10, after the semicolon, by inserting ``district magistrate judges;''; in line 12, before ``amending'' by inserting ``definitions; life insurance; survivor provisions;''; also in line 12, after ``20-2610'' by inserting ``, 20-2620''; in line 13, after ``Supp.'' by inserting ``20-2601, 74-4902,''; also in line 13, after ``74-4904,'' by inserting ``74-4908,''; also in line 13, after ``74-4911f,'' by inserting ``74-4913,''; in line 14, after ``74-4914,'' by inserting ``74-4914e, 74-4919a, 74-4919c, 74-4919h,''; and the bill be passed as amended. The Committee on Appropriations recommends HB 2240 be amended on page 1, after line 14, by inserting a new section to read as follows: ``Section 1. K.S.A. 20-2609 is hereby amended to read as follows: 20-2609. (a) Any judge who has become permanently physically or mentally disabled and who is not entitled to retire under K.S.A. 20-2608 and amendments thereto may, upon being found so disabled by the supreme court, retire under this section, and upon such retirement such judge shall be entitled to receive an annuity, each monthly payment of which shall be in an amount equal to 3.5% of the final average salary of the judge, determined as provided in subsection (b) of K.S.A. 20-2610 and amendments thereto, multiplied by the number of total years of service, but such monthly benefits shall be at least 25% but shall not exceed 70% of the final average salary of the judge, determined as provided in subsection (b) of K.S.A. 202610 and amendments thereto. (b) Any judge, or the conservator of any judge, desiring to retire under the provisions of this section shall file an application for such retirement with the clerk of the supreme court, which application shall be in such form and contain such information as the supreme court shall require. The court may require such judge to be examined by a physician appointed by the court and may require such other evidence and proof of disability as it deems necessary to reach a determination as to whether such judge is so permanently disabled. If the supreme court shall determine that any such judge is so permanently disabled it shall promptly notify the board and thereupon such judge shall be placed on retirement by the board and monthly receive the retirement annuity as provided in this section. (c) Any judge receiving an annuity under the provisions of this section shall be considered an active judge for the purposes of K.S.A. 20-2608 and amendments thereto and shall, upon reaching age 65 or upon making application for retirement, have such judge's retirement under this section terminated and such judge shall be placed on retirement under the provisions of K.S.A. 20-2608 and amendments thereto. (d) In the event that a judge eligible for a disability annuity authorized by this section shall be disabled for a period of five years or more immediately preceding retirement, such judge's final average salary shall be adjusted upon retirement by the actuarial salary assumption rates in existence during such period of disability. Effective July 1, 1993, such judge's final average salary shall be adjusted upon retirement by 5% for each year of disability after July 1, 1993, but before July 1, 1997. Effective July 1, 1997, such judge's final average March 21, 1997 517 salary shall be adjusted upon retirement by an amount equal to the lesser of: (1) The percentage increase in the consumer price index for all urban consumers as published by the bureau of labor statistics of the United States department of labor; or (2) four percent per annum, measured from the month the disability occurs to the month that is two months prior to the month of retirement, for each year of disability after July 1, 1997. (e) The provisions of law in effect on the retirement date of a judge under the retirement system for judges shall govern the retirement benefit payable to the judge, any joint annuitant and any beneficiary.''; And by renumbering sections accordingly; On page 3, in line 34, after ``1993'' by inserting ``, but before July 1, 1997''; also in line 34 after the period, by inserting ``Effective July 1, 1997, such member's final average salary shall be adjusted upon retirement by an amount equal to the lesser of: (i) The percentage increase in the consumer price index for all urban consumers as published by the bureau of labor statistics of the United States department of labor; or (ii) four percent per annum, measured from the month the disability occurs to the month that is two months prior to the month of retirement, for each year of disability after July 1, 1997.''; in line 41, after ``1993'' by inserting ``, but before July 1, 1997''; also in line 41, after the period, by inserting ``Effective July 1, 1997, such member's current annual rate shall be adjusted upon death by an amount equal to the lesser of: (i) The percentage increase in the consumer price index for all urban consumers published by the bureau of labor statistics of the United States department of labor; or (ii) four percent per annum, measured from the month the disability occurs to the month that is two months prior to the month of death, for each year of disability after July 1, 1997.''; On page 6, after line 22, by inserting a new section to read as follows: ``Sec. 3. K.S.A. 1996 Supp. 74-4966 is hereby amended to read as follows: 74-4966. (a) In the case of any member whose employment shall be covered by social security and who is a member of the class certified in the case of Brazelton v. Kansas public employees retirement system, 227 K. 443, 607 P.2d 510 (1980), any benefits payable under the provisions of K.S.A. 74-4958, 74-4959 and 74-4960 shall be reduced by an amount equal to 1/2 of the original social security benefits accruing from employment with the participating employer at the time the member retired. For any member already retired on the effective date of this act, no reduction of the original social security benefits shall be applicable to benefits paid prior to the effective date of this act. The member must make an initial application for social security benefits from employment with the participating employer and, if denied such benefits, the member must pursue and exhaust all administrative remedies of the social security administration which include, but are not limited to, reconsideration and hearings. Until such initial application for benefits has been approved by the social security administration, social security benefits may be estimated and may be deducted from the amount of any benefits payable as provided in this subsection. (b) For any member other than a member who is a member of the class certified in the case of Brazelton v. Kansas public employees retirement system, 227 K. 443, 607 P.2d 510 (1980), no benefits shall be reduced because of social security benefits. Any benefits which first become payable on or after January 1, 1976, by reason of employment with a participating employer participating in the Kansas police and firemen's retirement system, which employment was also covered by social security, shall be reduced by an amount equal to the value of the difference between contributions actually made by the member and contributions which would have been made had there been no reduction for contributions to social security. The amount of reduction shall be made by the board upon the advice of the actuary at the time benefits become payable and shall continue until benefits are no longer payable. Should a member, whose employment prior to January 1, 1976, with a participating employer participating in the Kansas police and firemen's retirement system, such employment also being covered by social security, repay in a lump sum prior to January 1, 1977, or on date of retirement, whichever is earlier, an amount equal to the difference between contributions actually made by the member and contributions which would have been made had there been no reduction for contributions to social security, there shall be no reduction as heretofore provided. If the payment is made after January 1, 1977, but prior 518 JOURNAL OF THE HOUSE to retirement, the member will pay the actual amount plus interest which shall accrue from January 1, 1976, at a rate specified by the board of trustees.''; And by renumbering sections accordingly; Also on page 6, in line 23, after ``2.'' by inserting ``K.S.A. 20-2609 and''; also in line 23, by striking ``is'' and inserting ``and 74-4966 are''; On page 1, in the title, in line 9, after ``system'' by inserting ``and systems thereunder''; in line 10, after ``to'' by inserting ``benefits;''; also in line 10, after ``benefits'' by inserting ``and retirement annuity for disabled judges''; also in line 10, after the semicolon, by inserting ``annual final average salary adjustment;''; in line 11, after ``amending'' by inserting ``K.S.A. 20-2609 and''; also in line 11, after ``74-4927'' by inserting ``and 74-4966''; in line 12, by striking ``section'' and inserting ``sections''; and the bill be passed as amended. The Committee on Appropriations recommends HB 2272 be amended as recommended by the House Committee on Appropriations and the bill, as printed with amendments by House Committee, be further amended on page 6, in line 39, by striking ``$3,828,608'' and inserting in lieu thereof ``$3,848,608''; in line 43, by striking ``$7,143,555'' and inserting in lieu thereof ``$14,143,555''; On page 7, in line 5, by striking ``$8,697,005'' and inserting in lieu thereof ``$8,717,005''; On page 17, in line 5, by striking ``$1,090,325'' and inserting in lieu thereof ``$1,091,325''; in line 9, by striking ``$68,659,054'' and inserting in lieu thereof ``$68,658,055''; On page 24, after line 18, by inserting the following: ``Sec. 55. BOARD OF ACCOUNTANCY (a) In addition to the other purposes for which expenditures may be made by the above agency from the board of accountancy fee fund for the fiscal year ending June 30, 1997, as authorized by section 3(a) of chapter 224 of the 1995 Session Laws of Kansas, section 7 of chapter 191 of the 1996 Session Laws of Kansas, or by this or other appropriation act of the 1997 regular session of the legislature, expenditures may be made by the above agency from the board of accountancy fee fund for fiscal year 1997 for certified public accountant examination services for the administration of the certified public accountant examination in May, 1997: Provided, That all expenditures for such certified public accountant examination services shall be in addition to any expenditure limitation imposed upon the board of accountancy fee fund for fiscal year 1997: Provided, however, That expenditures from the board of accountancy fee fund for fiscal year 1997 for such certified public accountant examination services shall not exceed $120,000.''; And by renumbering sections accordingly; On page 1, in the title, in line 34, by striking ``and'' and inserting in lieu thereof a comma; in line 35, before the semicolon, by inserting ``and board of accountancy''; and the bill be passed as amended. The Committee on Business, Commerce and Labor recommends SB 190 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 Environment recommends SB 276, as amended by Senate Committee, be amended on page 3, in line 6, by striking ``invoice'' and inserting ``bill''; On page 4, in line 13, following ``submitted'' by inserting ``by the applicant''; in line 14, by striking all after the period; in line 15, by striking ``tion, if'' and inserting ``If''; in line 40, by striking all following the period; by striking all of lines 41 and 42; On page 5, in line 15, by striking all following ``is''; by striking all of lines 16 through 20 and inserting ``acceptable, the department shall publish a notice of the determination in a local newspaper of general circulation in the area affected and make the voluntary cleanup plan available to the public. The public shall have 15 days from the date of publication during which any person may submit to the department written comments regarding the voluntary cleanup plan. After 15 days have elapsed, the department may hold a public information meeting if, in the department's judgment, the comments submitted warrant such a meeting or if the applicant requests such a meeting. Upon completion of the public notification and participation process, the department shall make a determination to approve the plan in accordance with this section.''; in line 25, by striking ``submission of'' and inserting March 21, 1997 519 ``willful submission of false, inaccurate or''; in line 26, following the semicolon, by inserting ``or''; in line 27, by striking ``Failure'' and inserting ``failure''; and the bill be passed as amended. The Committee on Environment recommends SCR 1608, as amended by Senate Committee, be amended on page 1, in line 31, by striking ``The'' and inserting ``Agriculture is the number one industry of this state and the''; in line 32, by striking ``and expensive'' and inserting ``because of the impact of normal and approved agricultural practices; and WHEREAS, Expensive''; Also on page 1, in line 35, preceding the semicolon, by inserting ``and without a practical means to achieve the additional standard or the ability to attain compliance''; On page 2, in line 3, preceding ``Now'' by inserting ``and WHEREAS, The Department of Health and Environment is monitoring air quality to determine the levels of naturally occurring particulate matter in the air of this state;``; and the concurrent resolution be adopted as amended. The Committee on Environment recommends SCR 1609, as amended by Senate Committee, be amended on page 1, in line 38, by striking ``that''; in line 42, after ``effort'' by inserting ``and the probability that actions by the state or people of Kansas will have little, if any, effect on the air quality of other states''; and the concurrent resolution be adopted as amended. The committee on Governmental Organization and Elections recommends SB 13, as amended by Senate Committee, be passed. The Committee on Governmental Organization and Elections recommends SB 58, as amended by Senate Committee, be passed and, becuase the committee is of the opinion that the bill is of a noncontroversial nature, be placed on the consent calendar. The Committee on Governmental Organization and Elections recommends SB 116, as amended by Senate Committee of the Whole, be amended on page 3, following line 30, by inserting the following: ``Sec. 3. K.S.A. 1996 Supp. 46-236 is hereby amended to read as follows: 46-236. No state officer or employee, candidate for state office or state officer elect shall solicit any economic opportunity, gift, loan, gratuity, special discount, favor, hospitality, or service from any person known to have a special interest, under circumstances where such officer, employee, candidate or state officer elect knows or should know that a major purpose of the donor in granting the same could be to influence in exchange for the performance or nonperformance of the official duties or prospective official duties of such officer, employee, candidate or state officer elect. Except when a particular course of official action is to be followed as a condition thereon, this section shall not apply to: (1) Any contribution reported in compliance with the campaign finance act; (2) a commercially reasonable loan or other commercial transaction in the ordinary course of business; or (3) any solicitation for the benefit of any charitable organization which is required to file a registration statement with the secretary of state pursuant to K.S.A. 17-1740 17-1763, and amendments thereto, or which is exempted from filing such statement pursuant to K.S.A. 17-1741 17-1762, and amendments thereto, or for the benefit of any educational institution or such institution's endowment association, if such association has qualified as a nonprofit organization under paragraph (3) of subsection (c) of section 501 of the internal revenue code of 1986, as amended. Sec. 4. K.S.A. 1996 Supp. 46-237 is hereby amended to read as follows: 46-237. (a) No state officer or employee, candidate for state office or state officer elect shall accept, or agree to accept any economic opportunity, gift, loan, gratuity, special discount, favor, hospitality, or service having an aggregate value of $40 or more in any calendar year from any one person known to have a special interest, under circumstances where such person knows or should know that a major purpose of the donor is to influence such person in exchange for the performance or nonperformance of their official duties or prospective official duties of such officer, employee, candidate or state officer elect. (b) No person with a special interest shall offer, pay, give or make any economic opportunity, gift, loan, gratuity, special discount, favor, hospitality or service having an aggregate value of $40 or more in any calendar year to any state officer or employee, candidate for state office or state officer elect with a major purpose of influencing such 520 JOURNAL OF THE HOUSE officer or employee, candidate for state office or state officer elect in exchange for the performance or nonperformance of official duties or prospective official duties of such officer, employee, candidate or state officer elect. (c) No person licensed, inspected or regulated by a state agency shall offer, pay, give or make any economic opportunity, gift, loan, gratuity, special discount, favor, hospitality, or service having an aggregate value of $40 or more in any calendar year to such agency or any state officer or, employee, candidate for state office or state officer elect of that agency in exchange for the performance or nonperformance of official duties or prospective duties of such agency, state officer, employee, candidate for state office or state officer elect of such agency. (d) Hospitality in the form of recreation, food and beverages are presumed not to be given to influence a state officer or employee, candidate for state office or state officer elect in exchange for the performance or nonperformance of official duties or prospective official duties, except when a particular course of official action is to be followed as a condition thereon. For the purposes of this subsection, the term recreation shall not include the providing or the payment of the cost of transportation or lodging. (e) The making or giving of any economic opportunity, gift, loan, gratuity, special discount, favor or service having an aggregate value of $40 or more in any calendar year from any person known to have a special interest shall be presumed to have been given in exchange for the performance or nonperformance of official duties or prospective official duties. (e) (f) Except when a particular course of official action is to be followed as a condition thereon, this section shall not apply to: (1) Any contribution reported in compliance with the campaign finance act; or (2) a commercially reasonable loan or other commercial transaction in the ordinary course of business. (f) (g) No state officer or employee shall accept any payment of honoraria for any speaking engagement except that a member of the state legislature or a part-time officer or employee of the executive branch of government shall be allowed to receive reimbursement in the preparation for and the making of a presentation at a speaking engagement in an amount fixed by the Kansas commission on governmental standards and conduct prior to the acceptance of the speaking engagement. Nothing in this section shall be construed to prohibit the reimbursement of state officers and employees for reasonable expenses incurred in attending seminars, conferences and other speaking engagements. (g) (h) The provisions of this section shall not be applicable to or prohibit the acceptance of gifts from governmental agencies of foreign nations except that any gift accepted from such foreign governmental agency, having an aggregate value of $100 or more, shall be accepted on behalf of the state of Kansas. (h) (i) No legislator shall solicit any contribution to be made to any organization for the purpose of paying for travel, subsistence and other expenses incurred by such legislator or other members of the legislature in attending and participating in meetings, programs and activities of such organization or those conducted or sponsored by such organization, but nothing in this act or the act of which this act is amendatory shall be construed to prohibit any legislator from accepting reimbursement for actual expenses for travel, subsistence, hospitality, entertainment and other expenses incurred in attending and participating in meetings, programs and activities sponsored by the government of any foreign nation, or any organization organized under the laws of such foreign nation or any international organization or any national, nonprofit, nonpartisan organization established for the purpose of serving, informing, educating and strengthening state legislatures in all states of the nation, when paid from funds of such organization and nothing shall be construed to limit or prohibit the expenditure of funds of and by any such organization for such purposes. Sec. 5. K.S.A. 46-271 is hereby amended to read as follows: 46-271. No lobbyist shall offer, pay, give or make any economic opportunity, gift, loan, gratuity, special discount, favor, hospitality, or service having an aggregate value of $40 or more in any calendar year to any state officer or, state officer elect, employee or candidate for state office with a major purpose of influencing such officer or employee in exchange for the performance or nonperformance of official duties or prospective official duties of such officer, employee, candidate or state officer elect. Hospitality in the form of recreation, food and beverages are March 21, 1997 521 presumed not to be given to influence a state officer or employee or candidate for state office in exchange for the performance or nonperformance of official duties, except when a particular course of official action is to be followed as a condition thereon. Except when a particular course of official action is to be followed as a condition thereon, this section shall not apply to (1) any contribution reported in compliance with the campaign finance act as amended, or (2) a commercially reasonable loan or other commercial transaction in the ordinary course of business.''; By renumbering sections accordingly; Also on page 3, in line 31, by striking ``and 45-220'' and inserting ``, 45-220, 46-271 and 46-277 and K.S.A. 1996 Supp. 46-236 and 46-237 are''; In the title, by striking all in lines 10, 11 and 12 and inserting: ``AN ACT concerning public officers and employees; relating to the duties and responsibilities thereof; amending K.S.A. 21-3914, 45-220 and 46-271 and K.S.A. 1996 Supp. 46-236 and 46-237 and repealing the existing sections; also repealing K.S.A. 46-277.''; and the bill be passed as amended. The Committee on Health and Human Services recommends SB 164, as amended by Senate Committee of the Whole, be amended on page 2, in line 24, after ``study'' by inserting ``related to deficiencies identified on the failed examination profiles''; On page 4, in line 20, after ``study'' by inserting ``related to deficiencies identified on the failed examination profiles''; On page 6, in line 27, after ``that'' by inserting ``notwithstanding K.S.A. 74-120''; in line 32, by striking ``37'' and inserting in lieu thereof ``34''; On page 13, in line 36, after ``that'' by inserting ``notwithstanding K.S.A. 74-120''; in line 39, by striking ``37'' and inserting in lieu thereof ``34''; On page 15, by striking all in lines 21 through 43; On page 16, by striking all in lines 1 through 14; And by renumbering sections accordingly; Also on page 16, in line 15, by striking ``, 65-4208 and 65-4921'' and inserting in lieu thereof ``and 65-4208''; On page 1, in the title, in line 13, by striking ``, 65-4208 and 65-4921'' and inserting in lieu thereof ``and 65-4208''; and the bill be passed as amended. The Committee on Health and Human Services recommends SB 221, as amended by Senate Committee of the Whole, be amended on page 3, in line 25, before ``Unless'' by inserting the following: ``A licensing agency in conducting a disciplinary proceeding in which admission of any report, record or testimony relating to any report or record under this section is proposed shall hold the hearing in closed session when any such report, record or testimony is disclosed.''; On page 4, in line 5, by striking all after the period; by striking all in lines 6 through 10 and inserting in lieu thereof the following: ``A licensing agency conducting a disciplinary proceeding may not rely solely on peer review committee records, testimony or reports and must prove its findings with independently obtained testimony or records which shall be presented as part of the disciplinary proceeding in open meeting of the licensing agency. Offering such testimony or records in an open public hearing shall not be deemed a waiver of the peer review privilege relating to any peer review committee testimony, records or report.''; On page 5, in line 26, after ``agency'' by inserting ``in''; in line 27, by striking ``or'' and inserting in lieu thereof a comma; also in line 27, after ``record'' by inserting ``or testimony relating to any report or record''; in line 28, by striking ``or'' and inserting in lieu thereof a comma; also in line 28, after ``record'' by inserting ``or testimony''; in line 29, after the period, by inserting the following: ``Unless otherwise provided by law, a licensing agency conducting a disciplinary proceeding may close only that portion of the hearing in which disclosure of a report or record privileged under this section is proposed. In closing a portion of a hearing as provided by this section, the presiding officer may exclude any person from the hearing location except the licensee, the licensee's attorney, the agency's attorney, the witness, the court reporter and appropriate staff support for either counsel.''; also in line 29, by striking ``all'' and inserting in lieu thereof ``the''; in line 31, after the period, by inserting the following: ``Such report or record shall not be subject to discovery, subpoena 522 JOURNAL OF THE HOUSE or other means of legal compulsion for their release to any person or entity.''; in line 32, by striking ``session held as a part'' and inserting in lieu thereof ``portion''; in line 33, by striking all after ``shall'' where it appears for the first time; by striking all in lines 34 through 36 and inserting in lieu thereof the following: ``at a subsequent civil, criminal or administrative hearing, be required to testify regarding the existence or content of a report or record privileged under this section which was disclosed in a closed portion of a hearing, nor shall such testimony be admitted into evidence in any subsequent civil, criminal or administrative hearing. A licensing agency conducting a disciplinary proceeding may not rely solely on peer review committee records, testimony or reports and must prove its findings with independently obtained testimony or records which shall be presented as part of the disciplinary proceeding in open meeting of the licensing agency. Offering such testimony or records in an open public hearing shall not be deemed a waiver of the peer review privilege relating to any peer review committee testimony, records or report.''; and the bill be passed as amended. The Committee on Insurance recommends HB 2297 be passed. The Committee on Transportation recommends SB 188, as amended by Senate Committee of the Whole, be amended on page 1, in line 23, by striking all following ``treasurer''; in line 24, by striking all preceding ``may''; and the bill be passed as amended. REPORT OF STANDING COMMITTEE Your Committee on Calendar and Printing recommends on requests for resolutions and certificates that Request No. 64, by Representative Johnson, congratulating Kathy Cook, Russell County Teacher of the Year; Request No. 65, by Representative Johnson, congratulating Heather Thacker, 1997 Russell County Spelling Bee Champion; Request No. 66, by Representative Tanner, congratulating Wellsville High School Girls' Basketball Team, Class 3A State Champions; Request No. 67, by Representative Wells, congratulating Wichita East Boys' Varsity Basketball Team for winning the Wichita City League 1996-97 6A Basketball Championship; Request No. 68, by Representative Alldritt, congratulating Medicine Lodge Boys' Basketball Team, 1997 3A State Champions; Request No. 69, by Representative Wempe, congratulating Little River Lady Redskins on winning their third straight 1A Basketball Championship; Request No. 70, by Representative Humerickhouse, congratulating Maurice and Jane Patterson on their 50th wedding anniversary; Request No. 71, by Representative Samuelson, congratulating Moundridge High School Girls' Basketball Team, Class 2A 1997 State Champions; Request No. 72, by Representative Samuelson, congratulating Moundridge High School Boys' Basketball Team, Class 2A 1997 State Champions; be approved and the Chief Clerk of the House be directed to order the printing of said certificates and order drafting of said resolutions. On motion of Rep. Jennison, the committee report was adopted. Upon unanimous consent, the House referred back to the regular order of business, Introduction of Bills and Concurrent Resolutions. INTRODUCTION OF BILLS AND CONCURRENT RESOLUTIONS The following bills were introduced and read by title: HB 2540, An act changing the chief information architect into the chief information officer; providing for appointment; powers, duties and functions; amending K.S.A. 1996 Supp. 75-4706, 75-4707, 75-4740, 75-4742, 75-4743 and 75-4744 and repealing the existing sections, by Committee on Calendar and Printing. HB 2541, An act concerning the retirement system for judges; relating to retirement annuity for disabled judges; amending K.S.A. 20-2609 and repealing the existing section, by Committee on Appropriations. March 21, 1997 523 HB 2542, An act concerning the Kansas public employees retirement system; relating to real estate investment standards; amending K.S.A. 1996 Supp. 74-4921 and repealing the existing section, by Committee on Appropriations. On motion of Rep. Jennison, the House adjourned until 10:30 a.m., Monday, March 24, 1997. CHARLENE SWANSON, Journal Clerk. JANET E. JONES, Chief Clerk. +--+ | | +--+