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


                             FIFTY-SIXTH DAY
                                    --------

                                          HALL OF THE HOUSE OF REPRESENTATIVES
                             TOPEKA, KAN., Wednesday, April 2, 1997, 9:00 a.m.

  The House met pursuant to adjournment with Speaker pro tem Wagle in the
chair.
  The roll was called with 123 members present.
  Rep. Dean was excused on verified illness.
  Rep. Ruff was excused on excused absence by the Speaker.
  Present later: Rep. Ruff.
  Prayer by guest chaplain, the Rev. Jesse Middendorf, pastor, First Church of
the Naza rene, Kansas City, Missouri, and guest of Rep. Campbell:
     Almighty God,
     We begin the day in your presence, acknowledging your sovereignty over
   the affairs of humankind. We celebrate your care for the people of this
   great state, and give you thanks for the members of this House of
   Representatives who have made themselves available for service to the
   people of Kansas.
     Grant that the deliberations of the day may serve the best interests of
   the people of this land.
     May the Members of this House stand forthrightly for what is pure and
   true and just and good. May they seek the best for the weak and the
   oppressed, and stand firmly for the rights of those least able to defend
   their own.
     By your Spirit, prompt each of us today to put right before interest:
            to put others before self;
            to put the attainment of noble purposes above the
   enjoyment of personal
            advantage or pleasure.
     Guide us to put principle above reputation, and to be formed in that
   righteousness for which you so fearfully and wonderfully made us.
     Thank you that in this place, and on this day, we may have direct and
   personal access to you through prayer.
     In your Holy name we ask these things, Amen.

REFERENCE OF BILLS AND CONCURRENT RESOLUTIONS

  The following bills and resolutions were referred to committees as
indicated:
  Taxation: HB 2573 (separately).
  Tourism: HB 2573 (separately).
  Select Committee on Corrections and Juvenile Justice: HB 2572.

CHANGE OF REFERENCE

  Speaker pro tem Wagle announced the withdrawal of SB 337 from
Committee on Tax ation. The bill, having been referred separately to
Committee on Tourism and Committee on Taxation and reported out of Committee
on Tourism, is now on General Orders.

MESSAGE FROM THE SENATE

  The Senate nonconcurs in House amendments to SB 43, requests a
conference and has appointed Senators Kerr, Salisbury and Petty as conferees
on the part of the Senate.

684                           JOURNAL OF THE HOUSE

  The Senate nonconcurs in House amendments to SB 220, requests a
conference and has appointed Senators Praeger, Salmans and Steineger as
conferees on the part of the Senate.
  The Senate nonconcurs in House amendments to SB 221, requests a
conference and has appointed Senators Praeger, Salmans and Lee as conferees
on the part of the Senate.
  The Senate accedes to the request of the House for a conference on HB
2007 and has appointed Senators Emert, Pugh and Goodwin as conferees on
the part of the Senate.
  The Senate accedes to the request of the House for a conference on HB
2010 and has appointed Senators Vidricksen, Jordan and Gilstrap as
conferees on the part of the Senate.
  The Senate accedes to the request of the House for a conference on HB
2011 and has appointed Senators Salisbury, Ranson and Barone as conferees
on the part of the Senate.
  The Senate accedes to the request of the House for a conference on HB
2025 and has appointed Senators Emert, Oleen and Goodwin as conferees on
the part of the Senate.
  The Senate accedes to the request of the House for a conference on HB
2055 and has appointed Senators Emert, Schraad and Goodwin as conferees on
the part of the Senate.
  The Senate accedes to the request of the House for a conference on HB
2056 and has appointed Senators Emert, Schraad and Goodwin as conferees on
the part of the Senate.
  The Senate accedes to the request of the House for a conference on HB
2064 and has appointed Senators Hardenburger, Becker and Gooch as
conferees on the part of the Senate.
  The Senate accedes to the request of the House for a conference on S.
Sub. for HB 2082 and has appointed Senators Langworthy, Steffes and Lee as
conferees on the part of the Senate.
  The Senate accedes to the request of the House for a conference on HB
2129 and has appointed Senators Praeger, Salmans and Steineger as
conferees on the part of the Senate.
  The Senate accedes to the request of the House for a conference on HB
2143 and has appointed Senators Emert, Pugh and Goodwin as conferees on
the part of the Senate.
  The Senate accedes to the request of the House for a conference on HB
2185 and has appointed Senators Praeger, Salmans and Steineger as
conferees on the part of the Senate.
  The Senate accedes to the request of the House for a conference on HB
2218 and has appointed Senators Hardenburger, Becker and Gooch as
conferees on the part of the Senate.
  The Senate accedes to the request of the House for a conference on HB
2223 and has appointed Senators Hardenburger, Becker and Gooch as
conferees on the part of the Senate.
  The Senate accedes to the request of the House for a conference on HB
2226 and has appointed Senators Corbin, Morris and Biggs as conferees on
the part of the Senate.
  The Senate accedes to the request of the House for a conference on HB
2255 and has appointed Senators Praeger, Salmans and Steineger as
conferees on the part of the Senate.
  The Senate accedes to the request of the House for a conference on HB
2315 and has appointed Senators Hardenburger, Becker and Gooch as
conferees on the part of the Senate.
  The Senate accedes to the request of the House for a conference on HB
2361 and has appointed Senators Corbin, Morris and Biggs as conferees on
the part of the Senate.
  The Senate accedes to the request of the House for a conference on Sub.
HB 2368 and has appointed Senators Corbin, Morris and Biggs as conferees
on the part of the Senate.

CHANGE OF CONFEREES

  Speaker pro tem Wagle announced the appointment of Rep. McKinney as a
member of the conference committee on SB 333 to replace Rep. Burroughs.

CONSENT CALENDAR

  No objection was made to HB 2351; SB 16, 124 appearing on the Consent
Calendar for the first day.

MOTIONS TO CONCUR AND NONCONCUR

  On motion of Rep. Phil Kline, the House concurred in Senate amendments to
HB 2038, An act concerning certain claims against the state; making
appropriations, authorizing cer tain transfers, imposing certain restrictions
and limitations, and directing or authorizing certain disbursements,
procedures and acts incidental to the foregoing.
  On roll call, the vote was: Yeas 106; Nays 14; Present but not voting 1;
Absent or not voting 4.

                                 April 2, 1997                              685

  Yeas: Ballard, Ballou, Beggs, Benlon, Boston, Bradley, Burroughs, Campbell,
Carmody, Compton, Correll, Cox, Crow, Dahl, Dillon, Dreher, Empson, Faber,
Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Garner,
Geringer, Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett,
Helgerson, Henderson, Henry, Holmes, Horst, Humer ickhouse, Hutchins,
Jennison, Johnson, Johnston, Kirk, Klein, Phil Kline, Phill Kline, Kreh biel,
Kuether, Lane, Larkin, Lloyd, J. Long, P. Long, Mason, Mayans, Mays, McClure,
McCreary, McKechnie, McKinney, Minor, Mollenkamp, Morrison, Myers, O'Neal, Os
borne, Packer, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff,
Powell, Powers, Presta, Ray, Reardon, Reinhardt, Samuelson, Sawyer, Schwartz,
Shallenburger, Sharp, Shore, Showalter, Shultz, Sloan, Stone, Storm, Swenson,
Tanner, Thimesch, Toelkes, To plikar, Vickrey, Vining, Wagle, Weber, Weiland,
Wells, Wempe, Wilk, Wilson.
  Nays: Adkins, Alldritt, Allen, Aurand, Edmonds, Freeborn, Howell, Kejr,
Neufeld, Nich ols, O'Connor, Spangler, Tomlinson, Welshimer.
  Present but not voting: Shriver.
  Absent or not voting: Dean, Huff, Landwehr, Ruff.
  On motion of Rep. Morrison, the House concurred in Senate amendments to
HB 2181, An act establishing a cancer registry in the state of Kansas
and providing for rules and regulations for the operation thereof.
  On roll call, the vote was: Yeas 94; Nays 29; Present but not voting 0;
Absent or not voting 2.
  Yeas: Alldritt, Allen, Ballard, Beggs, Boston, Bradley, Burroughs,
Campbell, Carmody, Compton, Correll, Crow, Dahl, Dillon, Dreher, Edmonds,
Empson, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin,
Freeborn, Garner, Geringer, Gilbert, Gilmore, Glasscock, Grant, Gregory,
Helgerson, Henry, Holmes, Horst, Huff, Humerickhouse, John son, Johnston,
Kirk, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Larkin, J.
Long, P. Long, Mason, Mayans, McClure, McCreary, McKinney, Minor, Morrison,
Myers, Nichols, O'Neal, Osborne, Pauls, E. Peterson, J. Peterson, Phelps,
Pottorff, Powell, Powers, Ray, Reardon, Reinhardt, Samuelson, Sawyer,
Schwartz, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Stone, Tanner,
Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber,
Weiland, Wempe, Wilk, Wilson.
  Nays: Adkins, Aurand, Ballou, Benlon, Cox, Faber, Haley, Hayzlett,
Henderson, Howell, Hutchins, Jennison, Kejr, Lane, Lloyd, Mays, McKechnie,
Mollenkamp, Neufeld, O'Con nor, Packer, Palmer, Presta, Shallenburger,
Spangler, Storm, Swenson, Wells, Welshimer.
  Present but not voting: None.
  Absent or not voting: Dean, Ruff.
  On motion of Rep. Allen, the House concurred in Senate amendments to HB
2188, An act concerning the department of wildlife and parks; relating to
improvement and devel opment of certain state parks; long-term leases;
taxation.
  On roll call, the vote was: Yeas 115; Nays 8; Present but not voting 0;
Absent or not voting 2.
  Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon,
Boston, Bradley, Burroughs, Carmody, Compton, Correll, Cox, Crow, Dahl,
Dillon, Dreher, Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora,
Flower, Franklin, Freeborn, Garner, Gerin ger, Gilbert, Gilmore, Glasscock,
Grant, Gregory, Haley, Hayzlett, Helgerson, Henderson, Henry, Holmes, Horst,
Huff, Humerickhouse, Hutchins, Jennison, Johnson, Johnston, Kejr, Kirk,
Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin,
Lloyd, J. Long, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie,
McKinney, Minor, Morrison, Myers, Nichols, O'Neal, Osborne, Packer, Palmer,
Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta,
Ray, Reardon, Reinhardt, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp,
Shore, Showalter, Shriver, Shultz, Sloan, Stone, Storm, Swenson, Tanner,
Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber,
Weiland, Wells, Welshimer, Wempe, Wilson.
  Nays: Campbell, Edmonds, Howell, Mollenkamp, Neufeld, O'Connor, Spangler,
Wilk.
  Present but not voting: None.
  Absent or not voting: Dean, Ruff.

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  On motion of Rep. Lane, the House nonconcurred in Senate amendments to
HB 2230 and asked for a conference.
  Speaker pro tem Wagle thereupon appointed Reps. Lane, Geringer and Pauls as
conferees on the part of the House.
  On motion of Rep. Mayans, the House concurred in Senate amendments to HB
2137, An act concerning health benefit coverage; policies and contracts
therefor; coverage for certain children; insurance coverage for
immunizations; amending K.S.A. 1996 Supp. 402,102 and repealing the existing
section, by Committee on Insurance. (The House requested the Senate to return
the bill, which was in conference).
  On roll call, the vote was: Yeas 122; Nays 0; Present but not voting 0;
Absent or not voting 3.
  Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon,
Boston, Bradley, Burroughs, Campbell, Carmody, Compton, Correll, Cox, Crow,
Dahl, Dillon, Dreher, Ed monds, 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, Mayans,
Mays, McClure, Mc Creary, McKechnie, McKinney, Minor, Mollenkamp, Morrison,
Myers, Neufeld, Nichols, O'Connor, O'Neal, Osborne, Packer, Palmer, Pauls, E.
Peterson, J. Peterson, Pottorff, Pow ell, Powers, Presta, Ray, Reardon,
Reinhardt, 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: Dean, Phelps, Ruff.

INTRODUCTION OF ORIGINAL MOTIONS

  On motion of Rep. Jennison, the House acceded to the request of the Senate
for a conference on SB 43.
  Speaker pro tem Wagle thereupon appointed Reps. Phil Kline, Farmer and
Helgerson 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 220.
  Speaker pro tem Wagle thereupon appointed Reps. Mayans, Morrison and Henry
as conferees on the part of the House.
  On motion of Rep. Jennison, the House acceded to the request of the Senate
for a conference on SB 221.
  Speaker pro tem Wagle thereupon appointed Reps. Mayans, Morrison and Henry
as conferees on the part of the House.
  On motion of Rep. Jennison, the House went into Committee of the Whole,
with Rep. Wilson in the chair.

COMMITTEE OF THE WHOLE

  On motion of Rep. Wilson, Committee of the Whole report, as follows, was
adopted:
  Recommended that SB 227 be passed over and retain its place on the
calendar (see further action, Committee of the Whole, Afternoon Session).
  HR 6012 be adopted.
  H. Sub. for SB 36 be passed over and retain its place on the calendar
(see further action, Committee of the Whole, Afternoon Session).
  SB 237 be passed.
  Committee report to Sub. SB 317 be adopted and the bill be passed as
amended.
  Committee report to SB 152 be adopted and the bill be passed as
amended.

                                 April 2, 1997                              687


REPORTS OF STANDING COMMITTEES

  The Committee on Taxation recommends SB 51, as amended by
Senate Committee, be amended on page 1, by striking all in lines 15 through
29; after line 29, by inserting the following:
  ``Section 1.  K.S.A. 79-1109 is hereby amended to read as follows: 79-1109.
As used in this act ``net income'' shall mean the Kansas taxable income of
corporations as defined in K.S.A. 79-32,138, and amendments thereto, or
the Kansas taxable income of shareholders as defined in K.S.A. 79-32,139, and
amendments thereto, plus income received from obli gations or securities
of the United States or any authority, commission or instrumentality of the
United States and its possessions to the extent not included in Kansas
taxable income of a corporation and income received from obligations of this
state or a political subdivision thereof which is exempt from income tax
under the laws of this state; less dividends received from stock issued by
Kansas Venture Capital, Inc. to the extent such dividends are included in the
Kansas taxable income of a corporation, interest paid on time deposits or
borrowed money and dividends paid on withdrawable shares of savings and loan
associations to the extent not deducted in arriving at Kansas taxable income
of a corporation.
  Savings and loan associations shall be allowed as a deduction from net
income, as here inbefore defined, a reserve established for the sole purpose
of meeting or absorbing losses, in the amount of 5% of such net income
determined without benefit of such deduction, but no further deduction shall
be allowed for losses when actually sustained and charged against such
reserve, unless such reserve shall have been fully absorbed thereby; or, in
the alter native, a reasonable addition to a reserve for losses based on past
experience, under such rules and regulations as the secretary of revenue may
prescribe.
  Sec. 2.  K.S.A. 1996 Supp. 79-32,117 is hereby amended to read as follows:
79-32,117.   (a) The Kansas adjusted gross income of an individual means such
individual's federal ad justed gross income for the taxable year, with the
modifications specified in this section.
  (b)  There shall be added to federal adjusted gross income:
  (i)  Interest income less any related expenses directly incurred in the
purchase of state or political subdivision obligations, to the extent that
the same is not included in federal adjusted gross income, on obligations of
any state or political subdivision thereof, but to the extent that interest
income on obligations of this state or a political subdivision thereof issued
prior to January 1, 1988, is specifically exempt from income tax under the
laws of this state authorizing the issuance of such obligations, it shall be
excluded from computation of Kansas adjusted gross income whether or not
included in federal adjusted gross income. Interest income on obligations of
this state or a political subdivision thereof issued after December 31, 1987,
shall be excluded from computation of Kansas adjusted gross income whether or
not included in federal adjusted gross income.
  (ii)  Taxes on or measured by income or fees or payments in lieu of income
taxes imposed by this state or any other taxing jurisdiction to the extent
deductible in determining federal adjusted gross income and not credited
against federal income tax. This paragraph shall not apply to taxes imposed
under the provisions of K.S.A. 79-1107 or 79-1108, and amendments thereto,
for privilege tax year 1995, and all such years thereafter.
  (iii)  The federal net operating loss deduction.
  (iv)  Federal income tax refunds received by the taxpayer if the deduction
of the taxes being refunded resulted in a tax benefit for Kansas income tax
purposes during a prior taxable year. Such refunds shall be included in
income in the year actually received regard less of the method of accounting
used by the taxpayer. For purposes hereof, a tax benefit shall be deemed to
have resulted if the amount of the tax had been deducted in determining
income subject to a Kansas income tax for a prior year regardless of the rate
of taxation applied in such prior year to the Kansas taxable income, but only
that portion of the refund shall be included as bears the same proportion to
the total refund received as the federal taxes deducted in the year to which
such refund is attributable bears to the total federal income taxes paid for
such year. For purposes of the foregoing sentence, federal taxes shall be
considered to have been deducted only to the extent such deduction does not
reduce Kansas taxable income below zero.

688                           JOURNAL OF THE HOUSE

  (v)  The amount of any depreciation deduction or business expense deduction
claimed on the taxpayer's federal income tax return for any capital
expenditure in making any build ing or facility accessible to the
handicapped, for which expenditure the taxpayer claimed the credit allowed by
K.S.A. 79-32,177, and amendments thereto.
  (vi)  Any amount of designated employee contributions picked up by an
employer pur suant to K.S.A. 12-5005, 20-2603, 74-4919 and 74-4965, and
amendments to such sections.
  (vii)  The amount of any charitable contribution made to the extent the
same is claimed as the basis for the credit allowed pursuant to K.S.A. 1996
Supp. 79-32,196, and amendments thereto.
  (c)  There shall be subtracted from federal adjusted gross income:
  (i)  Interest or dividend income on obligations or securities of any
authority, commission or instrumentality of the United States and its
possessions less any related expenses directly incurred in the purchase of
such obligations or securities, to the extent included in federal adjusted
gross income but exempt from state income taxes under the laws of the United
States.
  (ii)  Any amounts received which are included in federal adjusted gross
income but which are specifically exempt from Kansas income taxation under
the laws of the state of Kansas.
  (iii)  The portion of any gain or loss from the sale or other disposition
of property having a higher adjusted basis for Kansas income tax purposes
than for federal income tax purposes on the date such property was sold or
disposed of in a transaction in which gain or loss was recognized for
purposes of federal income tax that does not exceed such difference in basis,
but if a gain is considered a long-term capital gain for federal income tax
purposes, the modification shall be limited to that portion of such gain
which is included in federal adjusted gross income.
  (iv)  The amount necessary to prevent the taxation under this act of any
annuity or other amount of income or gain which was properly included in
income or gain and was taxed under the laws of this state for a taxable year
prior to the effective date of this act, as amended, to the taxpayer, or to a
decedent by reason of whose death the taxpayer acquired the right to receive
the income or gain, or to a trust or estate from which the taxpayer received
the income or gain.
  (v)  The amount of any refund or credit for overpayment of taxes on or
measured by income or fees or payments in lieu of income taxes imposed by
this state, or any taxing jurisdiction, to the extent included in gross
income for federal income tax purposes.
  (vi)  Accumulation distributions received by a taxpayer as a beneficiary of
a trust to the extent that the same are included in federal adjusted gross
income.
  (vii)  Amounts received as annuities under the federal civil service
retirement system from the civil service retirement and disability fund and
other amounts received as retire ment benefits in whatever form which were
earned for being employed by the federal government or for service in the
armed forces of the United States.
  (viii)  Amounts received by retired railroad employees as a supplemental
annuity under the provisions of 45 U.S.C. 228b (a) and 228c (a)(1) et
seq.
  (ix)  Amounts received by retired employees of a city and by retired
employees of any board of such city as retirement allowances pursuant to
K.S.A. 13-14,106, and amendments thereto, or pursuant to any charter
ordinance exempting a city from the provisions of K.S.A. 13-14,106, and
amendments thereto.
  (x)  For taxable years beginning after December 31, 1976, the amount of the
federal tentative jobs tax credit disallowance under the provisions of 26
U.S.C. 280 C. For taxable years ending after December 31, 1978, the amount of
the targeted jobs tax credit and work incentive credit disallowances under 26
U.S.C. 280 C.
  (xi)  For taxable years beginning after December 31, 1986, dividend income
on stock issued by Kansas Venture Capital, Inc.
  (xii)  For taxable years beginning after December 31, 1989, amounts
received by retired employees of a board of public utilities as pension and
retirement benefits pursuant to K.S.A. 13-1246, 13-1246a and 13-1249 and
amendments thereto.
  (xiii)  For taxable years beginning after December 31, 1993, the amount of
income earned on contributions deposited to an individual development account
under K.S.A. 1996 Supp. 79-32,117h, and amendments thereto.

                                 April 2, 1997                              689

  (xiv)  For all taxable years commencing after December 31, 1996, that
portion of any income of a bank organized under the laws of this state or any
other state, a national banking association organized under the laws of the
United States, an association organized under the savings and loan code of
this state or any other state, or a federal savings association organized
under the laws of the United States, for which an election as an S
corporation under subchapter S of the federal internal revenue code is in
effect, which accrues to the taxpayer who is a stockholder of such
corporation and which is not distributed to the stock holders as dividends of
the corporation.
  (d)  There shall be added to or subtracted from federal adjusted gross
income the tax payer's share, as beneficiary of an estate or trust, of the
Kansas fiduciary adjustment deter mined under K.S.A. 79-32,135, and
amendments thereto.
  (e)  The amount of modifications required to be made under this section by
a partner which relates to items of income, gain, loss, deduction or credit
of a partnership shall be determined under K.S.A. 79-32,131, and amendments
thereto, to the extent that such items affect federal adjusted gross income
of the partner.
  Sec. 3.  K.S.A. 79-1109 and K.S.A. 1996 Supp. 79-32,117 are hereby
repealed.'';
  By renumbering existing section 2 as section 4;
  In the title, in line 10, by striking all after ``ACT''; by striking all in
lines 11 and 12 and inserting ``relating to income taxation; excluding
distributions to stockholders of certain financial institutions; amending
K.S.A. 79-1109 and K.S.A. 1996 Supp. 79-32,117 and re pealing the existing
sections.''; and the bill be passed as amended.
  The Committee on Taxation recommends SB 53 be amended on page
1, by striking all in lines 14 through 43;
  On page 2, by striking all in lines 1 through 15; after line 15, by
inserting the following:
  ``Section 1.  (a) The governing body of any taxing subdivision may elect to
have the bonded indebtedness limitation of the taxing subdivision computed on
the basis of a per centage of assessed valuation, which percentage is
determined by dividing the amount of indebtedness authorized for such taxing
district in 1988 by the assessed valuation of all tangible taxable property
in the taxing subdivision in 1989.
  (b)  The board of trustees of any community college may elect to have the
bonded indebtedness limit of the district exceeded by the amount of any
general obligation bonded indebtedness approved by a majority of the voters
of the district prior to the effective date of this act.
  Sec. 2.  K.S.A. 79-5037 is hereby repealed.'';
  In the title, in line 9, by striking all after ``ACT''; by striking all in
lines 10 and 11 and inserting ``relating to debt limitations of certain
municipalities; repealing K.S.A. 79-5037.'' and the bill be passed as
amended.
  The Committee on Taxation recommends SB 162, as amended by
Senate Committee, be amended on page 2, after line 11, by inserting a new
section to read as follows:
  ``Sec. 2.  K.S.A. 1996 Supp. 79-201 is hereby amended to read as follows:
79-201. The following described property, to the extent herein specified,
shall be and is hereby exempt from all property or ad valorem taxes levied
under the laws of the state of Kansas:
  First. All buildings used exclusively as places of public worship and
all buildings used exclusively by school districts and school district
interlocal cooperatives organized under the laws of this state, with the
furniture and books therein contained and used exclusively for the
accommodation of religious meetings or for school district or school district
interlocal cooperative purposes, whichever is applicable, together with the
grounds owned thereby if not leased or otherwise used for the realization of
profit, except that: (a) (1) Any school building, or portion thereof,
together with the grounds upon which the building is located, shall be
considered to be used exclusively by the school district for the purposes of
this section when leased by the school district to any political or taxing
subdivision of the state, including a school district interlocal cooperative,
or to any association, organization or non profit corporation entitled to tax
exemption with respect to such property; and (2) any school building,
together with the grounds upon which the building is located, shall be
considered to be used exclusively by a school district interlocal cooperative
for the purposes of this section when being acquired pursuant to a
lease-purchase agreement; and (b) any building,

690                           JOURNAL OF THE HOUSE

or portion thereof, used as a place of worship, together with the grounds
upon which the building is located, shall be considered to be used
exclusively for the religious purposes of this section when used as a
not-for-profit day care center for children which is licensed pursuant to
K.S.A. 65-501 et seq., and amendments thereto, or when used to house an
area where the congregation of a church society and others may purchase
tracts, books and other items relating to the promulgation of the church
society's religious doctrines.
  Second. All real property, and all tangible personal property,
actually and regularly used exclusively for literary, educational,
scientific, religious, benevolent or charitable purposes, including property
used exclusively for such purposes by more than one agency or organi zation
for one or more of such exempt purposes. Except with regard to real
property which is owned by a religious organization, is to be used
exclusively for religious purposes and is not used for a nonexempt purpose
prior to its exclusive use for religious purposes which property shall be
deemed to be actually and regularly used exclusively for religious purposes
for the purposes of this paragraph, this exemption shall not apply to such
property, not actually used or occupied for the purposes set forth herein,
nor to such property held or used as an investment even though the income or
rentals received therefrom is used wholly for such literary, educational,
scientific, religious, benevolent or charitable purposes. This exemption
shall not be deemed inapplicable to property which would otherwise be exempt
pursuant to this paragraph because an agency or organization: (a) Is
reimbursed for the provision of services accomplishing the purposes
enumerated in this paragraph based upon the ability to pay by the recipient
of such services; or (b) is reimbursed for the actual expense of using such
property for purposes enumerated in this paragraph; or (c) uses such property
for a nonexempt purpose which is minimal in scope and insubstantial in nature
if such use is incidental to the exempt purposes of this paragraph; or (d)
charges a reasonable fee for admission to cultural or educational activities
or permits the use of its property for such activities by a related agency or
organization, if any such activity is in furtherance of the purposes of this
paragraph.
  Third. All moneys and credits belonging exclusively to universities,
colleges, academies or other public schools of any kind, or to religious,
literary, scientific or benevolent and charitable institutions or
associations, appropriated solely to sustain such institutions or
associations, not exceeding in amount or in income arising therefrom the
limit prescribed by the charter of such institution or association.
  Fourth. The reserve or emergency funds of fraternal benefit societies
authorized to do business under the laws of the state of Kansas.
  Fifth. All buildings of private nonprofit universities or colleges
which are owned and operated by such universities and colleges as student
union buildings, presidents' homes and student dormitories.
  Sixth. All real and tangible personal property actually and regularly
used exclusively by the alumni association associated by its articles of
incorporation with any public or nonprofit Kansas college or university
approved by the Kansas board of regents to confer academic degrees or with
any community college approved by its board of trustees to grant certificates
of completion of courses or curriculum, to provide accommodations and
services to such college or university or to the alumni, staff or faculty
thereof.
  Seventh. All parsonages owned by a church society and actually and
regularly occupied and used exclusively predominantly as a
residence by a minister or other clergyman of such church society who is
actually and regularly engaged in conducting the services and religious
ministrations of such society, and the land upon which such parsonage is
located to the extent necessary for the accommodation of such parsonage.
  Eighth. All real property, all buildings located on such property and
all personal property contained therein, actually and regularly used
exclusively by any individually chartered or ganization of honorably
discharged military veterans of the United States armed forces or auxiliary
of any such organization, which is exempt from federal income taxation
pursuant to section 501(c)(19) of the federal internal revenue code of 1986,
for clubhouse, place of meeting or memorial hall purposes, and real property
to the extent of not more than two acres, and all buildings located on such
property, actually and regularly used exclusively by any such veterans'
organization or its auxiliary as a memorial park.

                                 April 2, 1997                              691

  Ninth. All real property and tangible personal property actually and
regularly used by a community service organization for the predominant
purpose of providing humanitarian services, which is owned and operated by a
corporation organized not for profit under the laws of the state of Kansas or
by a corporation organized not for profit under the laws of another state and
duly admitted to engage in business in this state as a foreign not-for-profit
corporation if: (a) The directors of such corporation serve without pay for
such services; (b) the corporation is operated in a manner which does not
result in the accrual of distributable profits, realization of private gain
resulting from the payment of compensation in excess of a reasonable
allowance for salary or other compensation for services rendered or the reali
zation of any other form of private gain; (c) no officer, director or member
of such corpo ration has any pecuniary interest in the property for which
exemption is claimed; (d) the corporation is organized for the purpose of
providing humanitarian services; (e) the actual use of property for which an
exemption is claimed must be substantially and predominantly related to the
purpose of providing humanitarian services, except that, the use of such
property for a nonexempt purpose which is minimal in scope and insubstantial
in nature shall not result in the loss of exemption if such use is incidental
to the purpose of providing humanitarian services by the corporation; (f) the
corporation is exempt from federal income taxation pursuant to section
501(c)(3) of the internal revenue code of 1986 and; (g) contri butions to the
corporation are deductible under the Kansas income tax act. As used in this
clause, ``humanitarian services'' means the conduct of activities which
substantially and pre dominantly meet a demonstrated community need and which
improve the physical, mental, social, cultural or spiritual welfare of others
or the relief, comfort or assistance of persons in distress or any
combination thereof including but not limited to health and recreation
services, child care, individual and family counseling, employment and
training programs for handicapped persons and meals or feeding programs.
Notwithstanding any other pro vision of this clause, motor vehicles shall not
be exempt hereunder unless such vehicles are exclusively used for the
purposes described therein.
  Tenth. For all taxable years commencing after December 31, 1986, any
building, and the land upon which such building is located to the extent
necessary for the accommodation of such building, owned by a church or
nonprofit religious society or order which is exempt from federal income
taxation pursuant to section 501(c)(3) of the federal internal revenue code
of 1986, and actually and regularly occupied and used exclusively for
residential and religious purposes by a community of persons who are bound by
vows to a religious life and who conduct or assist in the conduct of
religious services and actually and regularly engage in religious,
benevolent, charitable or educational ministrations or the performance of
health care services.
  The provisions of this section, except as otherwise more specifically
provided, shall apply to all taxable years commencing after December 31,
1988 1995.'';
  Also, on page 2, in line 12, by striking ``79-201j is'' and inserting
``79-201 and 79-201j are'';
  By renumbering existing sections accordingly;
  In the title, in line 10, by striking all after ``concerning''; in line 11,
by striking all before the semicolon and inserting ``exemptions therefrom'';
also, in line 11, after ``Supp.'' by in serting ``79-201 and''; in line 12,
by striking ``section'' and inserting ``sections''; and the bill be passed as
amended.
  The Committee on Taxation recommends SB 184 be amended on page
1, in line 36, before ``Ellis'' by inserting ``Cowley,''; after line 40, by
inserting the following:
  ``Sec. 2.  K.S.A. 1996 Supp. 79-3606 is hereby amended to read as follows:
79-3606. The following shall be exempt from the tax imposed by this act:
  (a)  All sales of motor-vehicle fuel or other articles upon which a sales
or excise tax has been paid, not subject to refund, under the laws of this
state except cigarettes as defined by K.S.A. 79-3301 and amendments thereto,
cereal malt beverages and malt products as defined by K.S.A. 79-3817 and
amendments thereto, including wort, liquid malt, malt syrup and malt extract,
which is not subject to taxation under the provisions of K.S.A. 79-41a02 and
amendments thereto, and motor vehicles as defined by K.S.A. 79-1017 and
amendments thereto;

692                           JOURNAL OF THE HOUSE

  (b)  all sales of tangible personal property or service, including the
renting and leasing of tangible personal property, purchased directly by the
state of Kansas, a political subdi vision thereof, other than a school or
educational institution, or purchased by a public or private nonprofit
hospital or nonprofit blood, tissue or organ bank and used exclusively for
state, political subdivision, hospital or nonprofit blood, tissue or organ
bank purposes, except when: (1) Such state or hospital is engaged or proposes
to engage in any business specifically taxable under the provisions of this
act and such items of tangible personal property or service are used or
proposed to be used in such business, or (2) such political subdivision is
engaged or proposes to engage in the business of furnishing gas, water,
electricity or heat to others and such items of personal property or service
are used or proposed to be used in such business;
  (c)  all sales of tangible personal property or services, including the
renting and leasing of tangible personal property, purchased directly by a
public or private elementary or sec ondary school or public or private
nonprofit educational institution and used primarily by such school or
institution for nonsectarian programs and activities provided or sponsored by
such school or institution or in the erection, repair or enlargement of
buildings to be used for such purposes. The exemption herein provided shall
not apply to erection, con struction, repair, enlargement or equipment of
buildings used primarily for human habita tion;
  (d)  all sales of tangible personal property or services purchased by a
contractor for the purpose of constructing, equipping, reconstructing,
maintaining, repairing, enlarging, fur nishing or remodeling facilities for
any public or private nonprofit hospital, public or private elementary or
secondary school or a public or private nonprofit educational institution,
which would be exempt from taxation under the provisions of this act if
purchased directly by such hospital, school or educational institution; and
all sales of tangible personal property or services purchased by a contractor
for the purpose of constructing, equipping, recon structing, maintaining,
repairing, enlarging, furnishing or remodeling facilities for any po litical
subdivision of the state, the total cost of which is paid from funds of such
political subdivision and which would be exempt from taxation under the
provisions of this act if purchased directly by such political subdivision.
Nothing in this subsection or in the pro visions of K.S.A. 12-3418 and
amendments thereto, shall be deemed to exempt the purchase of any
construction machinery, equipment or tools used in the constructing,
equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
remodeling facilities for any political subdivision of the state. As used in
this subsection, K.S.A. 12-3418 and 79-3640, and amendments thereto, ``funds
of a political subdivision'' shall mean general tax revenues, the proceeds of
any bonds and gifts or grants-in-aid. Gifts shall not mean funds used for the
purpose of constructing, equipping, reconstructing, repairing, enlarging,
furnishing or re modeling facilities which are to be leased to the donor.
When any political subdivision of the state, public or private nonprofit
hospital, public or private elementary or secondary school or public or
private nonprofit educational institution shall contract for the purpose of
constructing, equipping, reconstructing, maintaining, repairing, enlarging,
furnishing or remodeling facilities, it shall obtain from the state and
furnish to the contractor an exemption certificate for the project involved,
and the contractor may purchase materials for incor poration in such project.
The contractor shall furnish the number of such certificate to all suppliers
from whom such purchases are made, and such suppliers shall execute invoices
covering the same bearing the number of such certificate. Upon completion of
the project the contractor shall furnish to the political subdivision,
hospital, school or educational in stitution concerned a sworn statement, on
a form to be provided by the director of taxation, that all purchases so made
were entitled to exemption under this subsection. All invoices shall be held
by the contractor for a period of five years and shall be subject to audit by
the director of taxation. If any materials purchased under such a certificate
are found not to have been incorporated in the building or other project or
not to have been returned for credit or the sales or compensating tax
otherwise imposed upon such materials which will not be so incorporated in
the building or other project reported and paid by such contractor to the
director of taxation not later than the 20th day of the month following the
close of the month in which it shall be determined that such materials will
not be used for the purpose for which such certificate was issued, the
political subdivision, hospital, school or

                                 April 2, 1997                              693

educational institution concerned shall be liable for tax on all materials
purchased for the project, and upon payment thereof it may recover the same
from the contractor together with reasonable attorney fees. Any contractor or
any agent, employee or subcontractor thereof, who shall use or otherwise
dispose of any materials purchased under such a certif icate for any purpose
other than that for which such a certificate is issued without the payment of
the sales or compensating tax otherwise imposed upon such materials, shall be
guilty of a misdemeanor and, upon conviction therefor, shall be subject to
the penalties provided for in subsection (g) of K.S.A. 79-3615, and
amendments thereto;
  (e)  all sales of tangible personal property or services purchased by a
contractor for the erection, repair or enlargement of buildings or other
projects for the government of the United States, its agencies or
instrumentalities, which would be exempt from taxation if purchased directly
by the government of the United States, its agencies or instrumentalities.
When the government of the United States, its agencies or instrumentalities
shall contract for the erection, repair, or enlargement of any building or
other project, it shall obtain from the state and furnish to the contractor
an exemption certificate for the project involved, and the contractor may
purchase materials for incorporation in such project. The contractor shall
furnish the number of such certificates to all suppliers from whom such
purchases are made, and such suppliers shall execute invoices covering the
same bearing the number of such certificate. Upon completion of the project
the contractor shall furnish to the govern ment of the United States, its
agencies or instrumentalities concerned a sworn statement, on a form to be
provided by the director of taxation, that all purchases so made were
entitled to exemption under this subsection. All invoices shall be held by
the contractor for a period of five years and shall be subject to audit by
the director of taxation. Any contractor or any agent, employee or
subcontractor thereof, who shall use or otherwise dispose of any ma terials
purchased under such a certificate for any purpose other than that for which
such a certificate is issued without the payment of the sales or compensating
tax otherwise imposed upon such materials, shall be guilty of a misdemeanor
and, upon conviction therefor, shall be subject to the penalties provided for
in subsection (g) of K.S.A. 79-3615 and amendments thereto;
  (f)  tangible personal property purchased by a railroad or public utility
for consumption or movement directly and immediately in interstate commerce;
  (g)  sales of aircraft including remanufactured and modified aircraft,
sales of aircraft repair, modification and replacement parts and sales of
services employed in the remanu facture, modification and repair of aircraft
sold to persons using such aircraft and aircraft repair, modification and
replacement parts as certified or licensed carriers of persons or property in
interstate or foreign commerce under authority of the laws of the United
States or any foreign government or sold to any foreign government or agency
or instrumentality of such foreign government and all sales of aircraft,
aircraft parts, replacement parts and services employed in the remanufacture,
modification and repair of aircraft for use outside of the United States;
  (h)  all rentals of nonsectarian textbooks by public or private elementary
or secondary schools;
  (i)  the lease or rental of all films, records, tapes, or any type of sound
or picture tran scriptions used by motion picture exhibitors;
  (j)  meals served without charge or food used in the preparation of such
meals to em ployees of any restaurant, eating house, dining car, hotel,
drugstore or other place where meals or drinks are regularly sold to the
public if such employees' duties are related to the furnishing or sale of
such meals or drinks;
  (k)  any motor vehicle, semitrailer or pole trailer, as such terms are
defined by K.S.A. 8-126 and amendments thereto, or aircraft sold and
delivered in this state to a bona fide resident of another state, which motor
vehicle, semitrailer, pole trailer or aircraft is not to be registered or
based in this state and which vehicle, semitrailer, pole trailer or aircraft
will not remain in this state more than 10 days;
  (l)  all isolated or occasional sales of tangible personal property,
services, substances or things, except isolated or occasional sale of motor
vehicles specifically taxed under the pro visions of subsection (o) of K.S.A.
79-3603 and amendments thereto;

694                           JOURNAL OF THE HOUSE

  (m)  all sales of tangible personal property which become an ingredient or
component part of tangible personal property or services produced,
manufactured or compounded for ultimate sale at retail within or without the
state of Kansas; and any such producer, manu facturer or compounder may
obtain from the director of taxation and furnish to the supplier an exemption
certificate number for tangible personal property for use as an ingredient or
component part of the property or services produced, manufactured or
compounded;
  (n)  all sales of tangible personal property which is consumed in the
production, man ufacture, processing, mining, drilling, refining or
compounding of tangible personal prop erty, the treating of by-products or
wastes derived from any such production process, the providing of services or
the irrigation of crops for ultimate sale at retail within or without the
state of Kansas; and any purchaser of such property may obtain from the
director of taxation and furnish to the supplier an exemption certificate
number for tangible personal property for consumption in such production,
manufacture, processing, mining, drilling, refining, compounding, treating,
irrigation and in providing such services;
  (o)  all sales of animals, fowl and aquatic plants and animals, the primary
purpose of which is use in agriculture or aquaculture, as defined in K.S.A.
47-1901, and amendments thereto, the production of food for human
consumption, the production of animal, dairy, poultry or aquatic plant and
animal products, fiber or fur, or the production of offspring for use for any
such purpose or purposes;
  (p)  all sales of drugs, as defined by K.S.A. 65-1626 and amendments
thereto, dispensed pursuant to a prescription order, as defined by K.S.A.
65-1626 and amendments thereto, by a licensed practitioner;
  (q)  all sales of insulin dispensed by a person licensed by the state board
of pharmacy to a person for treatment of diabetes at the direction of a
person licensed to practice medicine by the board of healing arts;
  (r)  all sales of prosthetic and orthopedic appliances prescribed in
writing by a person licensed to practice the healing arts, dentistry or
optometry. For the purposes of this sub section, the term prosthetic and
orthopedic appliances means any apparatus, instrument, device, or equipment
used to replace or substitute for any missing part of the body; used to
alleviate the malfunction of any part of the body; or used to assist any
disabled person in leading a normal life by facilitating such person's
mobility; such term shall include acces sories to be attached to motor
vehicles, but such term shall not include motor vehicles or personal property
which when installed becomes a fixture to real property;
  (s)  all sales of tangible personal property or services purchased directly
by a groundwater management district organized or operating under the
authority of K.S.A. 82a-1020 et seq. and amendments thereto, which
property or services are used in the operation or mainte nance of the
district;
  (t)  all sales of farm machinery and equipment or aquaculture machinery and
equipment, repair and replacement parts therefor and services performed in
the repair and maintenance of such machinery and equipment. For the purposes
of this subsection the term ``farm machinery and equipment or aquaculture
machinery and equipment'' shall include machin ery and equipment used in the
operation of Christmas tree farming but shall not include any passenger
vehicle, truck, truck tractor, trailer, semitrailer or pole trailer, other
than a farm trailer, as such terms are defined by K.S.A. 8-126 and amendments
thereto. Each purchaser of farm machinery and equipment or aquaculture
machinery and equipment exempted herein must certify in writing on the copy
of the invoice or sales ticket to be retained by the seller that the farm
machinery and equipment or aquaculture machinery and equipment purchased will
be used only in farming, ranching or aquaculture production. Farming or
ranching shall include the operation of a feedlot and farm and ranch work for
hire and the operation of a nursery;
  (u)  all leases or rentals of tangible personal property used as a dwelling
if such tangible personal property is leased or rented for a period of more
than 28 consecutive days;
  (v)  all sales of food products to any contractor for use in preparing
meals for delivery to homebound elderly persons over 60 years of age and to
homebound disabled persons or to be served at a group-sitting at a location
outside of the home to otherwise homebound elderly persons over 60 years of
age and to otherwise homebound disabled persons, as all or part of any food
service project funded in whole or in part by government or as part of

                                 April 2, 1997                              695

a private nonprofit food service project available to all such elderly or
disabled persons residing within an area of service designated by the private
nonprofit organization, and all sales of food products for use in preparing
meals for consumption by indigent or homeless individuals whether or not such
meals are consumed at a place designated for such purpose;
  (w)  all sales of natural gas, electricity, heat and water delivered
through mains, lines or pipes: (1) To residential premises for noncommercial
use by the occupant of such premises;   (2) for agricultural use and also,
for such use, all sales of propane gas; (3) for use in the severing of oil;
and (4) to any property which is exempt from property taxation pursuant to
K.S.A. 79-201b Second through Sixth.  As used in this paragraph,
``severing'' shall have the meaning ascribed thereto by subsection (k) of
K.S.A. 79-4216, and amendments thereto;
  (x)  all sales of propane gas, LP-gas, coal, wood and other fuel sources
for the production of heat or lighting for noncommercial use of an occupant
of residential premises;
  (y)  all sales of materials and services used in the repairing, servicing,
altering, maintain ing, manufacturing, remanufacturing, or modification of
railroad rolling stock for use in interstate or foreign commerce under
authority of the laws of the United States;
  (z)  all sales of tangible personal property and services purchased
directly by a port authority or by a contractor therefor as provided by the
provisions of K.S.A. 12-3418 and amendments thereto;
  (aa)  all sales of materials and services applied to equipment which is
transported into the state from without the state for repair, service,
alteration, maintenance, remanufacture or modification and which is
subsequently transported outside the state for use in the trans mission of
liquids or natural gas by means of pipeline in interstate or foreign commerce
under authority of the laws of the United States;
  (bb)  all sales of used mobile homes or manufactured homes. As used in this
subsection:   (1) ``Mobile homes'' and ``manufactured homes'' shall have the
meanings ascribed thereto by K.S.A. 58-4202 and amendments thereto; and (2)
``sales of used mobile homes or man ufactured homes'' means sales other than
the original retail sale thereof;
  (cc)  all sales of tangible personal property or services purchased for the
purpose of and in conjunction with constructing, reconstructing, enlarging or
remodeling a business or retail business which meets the requirements
established in K.S.A. 74-50,115 and amendments thereto, and the sale and
installation of machinery and equipment purchased for installation at any
such business or retail business. When a person shall contract for the
construction, reconstruction, enlargement or remodeling of any such business
or retail business, such person shall obtain from the state and furnish to
the contractor an exemption certificate for the project involved, and the
contractor may purchase materials, machinery and equipment for incorporation
in such project. The contractor shall furnish the number of such certificates
to all suppliers from whom such purchases are made, and such suppliers shall
execute invoices covering the same bearing the number of such certificate.
Upon completion of the project the contractor shall furnish to the owner of
the business or retail business a sworn statement, on a form to be provided
by the director of taxation, that all purchases so made were entitled to
exemption under this subsection. All invoices shall be held by the contractor
for a period of five years and shall be subject to audit by the director of
taxation. Any contractor or any agent, employee or subcontractor thereof, who
shall use or otherwise dispose of any materials, machinery or equipment
purchased under such a certificate for any purpose other than that for which
such a certificate is issued without the payment of the sales or compensating
tax otherwise imposed thereon, shall be guilty of a misdemeanor and, upon
conviction therefor, shall be subject to the penalties provided for in
subsection   (g) of K.S.A. 79-3615 and amendments thereto. As used in this
subsection, ``business'' and ``retail business'' have the meanings
respectively ascribed thereto by K.S.A. 74-50,114 and amendments thereto;
  (dd)  all sales of tangible personal property purchased with food stamps
issued by the United States department of agriculture;
  (ee)  all sales of lottery tickets and shares made as part of a lottery
operated by the state of Kansas;
  (ff)  on and after July 1, 1988, all sales of new mobile homes or
manufactured homes to the extent of 40% of the gross receipts, determined
without regard to any trade-in allowance, received from such sale. As used in
this subsection, ``mobile homes'' and ``manufactured

696                           JOURNAL OF THE HOUSE

homes'' shall have the meanings ascribed thereto by K.S.A. 58-4202 and
amendments thereto;
  (gg)  all sales of tangible personal property purchased in accordance with
vouchers issued pursuant to the federal special supplemental food program for
women, infants and children;
  (hh)  all sales of medical supplies and equipment purchased directly by a
nonprofit skilled nursing home or nonprofit intermediate nursing care home,
as defined by K.S.A. 39-923, and amendments thereto, for the purpose of
providing medical services to residents thereof. This exemption shall not
apply to tangible personal property customarily used for human habitation
purposes;
  (ii)  all sales of tangible personal property purchased directly by a
nonprofit organization for nonsectarian comprehensive multidiscipline youth
development programs and activities provided or sponsored by such
organization. This exemption shall not apply to tangible personal property
customarily used for human habitation purposes;
  (jj)  all sales of tangible personal property or services, including the
renting and leasing of tangible personal property, purchased directly on
behalf of a community-based mental retardation facility or mental health
center organized pursuant to K.S.A. 19-4001 et seq., and amendments
thereto, and licensed in accordance with the provisions of K.S.A. 75-3307b
and amendments thereto. This exemption shall not apply to tangible personal
property customarily used for human habitation purposes;
  (kk)  on and after January 1, 1989, all sales of machinery and equipment
used directly and primarily for the purposes of manufacturing, assembling,
processing, finishing, storing, warehousing or distributing articles of
tangible personal property in this state intended for resale by a
manufacturing or processing plant or facility or a storage, warehousing or
dis tribution facility:
  (1)  For purposes of this subsection, machinery and equipment shall be
deemed to be used directly and primarily in the manufacture, assemblage,
processing, finishing, storing, warehousing or distributing of tangible
personal property where such machinery and equip ment is used during a
manufacturing, assembling, processing or finishing, storing, ware housing or
distributing operation:
  (A) To effect a direct and immediate physical change upon the tangible
personal property;
  (B)  to guide or measure a direct and immediate physical change upon such
property where such function is an integral and essential part of tuning,
verifying or aligning the component parts of such property;
  (C)  to test or measure such property where such function is an integral
part of the production flow or function;
  (D)  to transport, convey or handle such property during the manufacturing,
processing, storing, warehousing or distribution operation at the plant or
facility; or
  (E)  to place such property in the container, package or wrapping in which
such property is normally sold or transported.
  (2)  For purposes of this subsection ``machinery and equipment used
directly and pri marily'' shall include, but not be limited to:
  (A)  Mechanical machines or major components thereof contributing to a
manufacturing, assembling or finishing process;
  (B)  molds and dies that determine the physical characteristics of the
finished product or its packaging material;
  (C)  testing equipment to determine the quality of the finished product;
  (D)  computers and related peripheral equipment that directly control or
measure the manufacturing process or which are utilized for engineering of
the finished product; and
  (E)  computers and related peripheral equipment utilized for research and
development and product design.
  (3)  ``Machinery and equipment used directly and primarily'' shall not
include:
  (A)  Hand tools;
  (B)  machinery, equipment and tools used in maintaining and repairing any
type of ma chinery and equipment;
  (C)  transportation equipment not used in the manufacturing, assembling,
processing, furnishing, storing, warehousing or distributing process at the
plant or facility;

                                 April 2, 1997                              697

  (D)  office machines and equipment including computers and related
peripheral equip ment not directly and primarily used in controlling or
measuring the manufacturing process;
  (E)  furniture and buildings; and
  (F)  machinery and equipment used in administrative, accounting, sales or
other such activities of the business;
  (ll)  all sales of educational materials purchased for distribution to the
public at no charge by a nonprofit corporation organized for the purpose of
encouraging, fostering and con ducting programs for the improvement of public
health;
  (mm)  all sales of seeds and tree seedlings; fertilizers, insecticides,
herbicides, germicides, pesticides and fungicides; and services, purchased
and used for the purpose of pro ducing plants in order to prevent soil
erosion on land devoted to agricultural use;
  (nn)  except as otherwise provided in this act, all sales of services
rendered by an ad vertising agency or licensed broadcast station or any
member, agent or employee thereof;
  (oo)  all sales of tangible personal property purchased by a community
action group or agency for the exclusive purpose of repairing or weatherizing
housing occupied by low income individuals;
  (pp)  all sales of drill bits and explosives actually utilized in the
exploration and produc tion of oil or gas;
  (qq)  all sales of tangible personal property and services purchased by a
nonprofit mu seum or historical society or any combination thereof, including
a nonprofit organization which is organized for the purpose of stimulating
public interest in the exploration of space by providing educational
information, exhibits and experiences, which is exempt from fed eral income
taxation pursuant to section 501(c)(3) of the federal internal revenue code
of 1986;
  (rr)  all sales of tangible personal property which will admit the
purchaser thereof to any annual event sponsored by a nonprofit organization
which is exempt from federal income taxation pursuant to section 501(c)(3) of
the federal internal revenue code of 1986;
  (ss)  all sales of tangible personal property and services purchased by a
public broad casting station licensed by the federal communications
commission as a noncommercial educational television or radio station;
and
  (tt)  all sales of tangible personal property and services purchased by or
on behalf of a not-for-profit corporation which is exempt from federal income
taxation pursuant to section 501(c)(3) of the federal internal revenue code
of 1986, for the sole purpose of constructing a Kansas Korean War
memorial; and
  (uu)  all sales of tangible personal property and services purchased by or
on behalf of any rural volunteer fire-fighting organization for use
exclusively in the performance of its duties and functions.'';
  Also, in line 41, by striking ``is'' and inserting ``and 79-3606 are'';
  By renumbering existing sections accordingly;
  In the title, in line 9, after ``ACT'' by inserting ``relating to sales
taxation;''; in line 10, before ``and'' by inserting ``and 79-3606''; in line
11, by striking ``section'' and inserting ``sections'' and the bill be passed
as amended.
  On motion of Rep. Jennison, the House recessed until 1:00 p.m.
 Afternoon Session   The House met pursuant to recess with Speaker pro
tem Wagle in the chair.
  Rep. Helgerson was excused later on excused absence by the Speaker.
  On motion of Rep. Jennison, the House went into Committee of the Whole,
with Rep. Wilson in the chair.

COMMITTEE OF THE WHOLE

  On motion of Rep. Wilson, Committee of the Whole report, as follows, was
adopted:
  Recommended that committee report to SB 227 be adopted; also, on
motion of Rep. Mason to amend, the motion was withdrawn. Also, on motion of
Rep. Spangler to amend,

698                           JOURNAL OF THE HOUSE

the motion did not prevail. Also, on motion of Rep. Larkin to amend, the
motion did not prevail.  Also, on motion of Rep. Larkin to refer the bill to
Committee on Taxation, the motion did not prevail. Also, on motion of Rep.
Mason to amend, the motion did not prevail.
  Also, on motion of Rep. Klein to amend SB 227, Rep. Lane requested a
ruling on the amendment being germane to the bill. The Rules Chair ruled the
amendment not germane. Rep. Garner challenged the ruling, the question being
``Shall the Rules Chair be sustained?'' Roll call was demanded.
  On roll call, the vote was: Yeas 69; Nays 52; Present but not voting 0;
Absent or not voting 4.
  Yeas: Adkins, Allen, Aurand, Ballou, Beggs, Benlon, Boston, Campbell,
Carmody, Comp ton, Cox, Dahl, Dreher, Edmonds, Empson, Faber, Farmer,
Freeborn, Geringer, Gilmore, Glasscock, Gregory, Hayzlett, Holmes, Horst,
Howell, Huff, Humerickhouse, Jennison, Johnson, Kejr, Phil Kline, Phill
Kline, Landwehr, Lane, Larkin, Lloyd, P. Long, Mason, Mays, McCreary,
Mollenkamp, Morrison, Myers, Neufeld, O'Connor, O'Neal, Osborne, Packer,
Palmer, J. Peterson, Pottorff, Powell, Presta, Ray, Samuelson, Schwartz,
Shallen burger, Shore, Shultz, Sloan, Stone, Tanner, Toplikar, Vining, Wagle,
Weber, Wilk, Wilson.
  Nays: Alldritt, Ballard, Burroughs, Correll, Crow, Dillon, Feuerborn,
Findley, Flaharty, Flora, Flower, Garner, Gilbert, Grant, Haley, Helgerson,
Henderson, Henry, Hutchins, Johnston, Kirk, Klein, Krehbiel, Kuether, J.
Long, McClure, McKechnie, McKinney, Minor, Nichols, Pauls, E. Peterson,
Phelps, Powers, Reardon, Reinhardt, Ruff, Sawyer, Sharp, Showalter, Shriver,
Spangler, Storm, Swenson, Thimesch, Toelkes, Tomlinson, Vickrey, Weiland,
Wells, Welshimer, Wempe.
  Present but not voting: None.
  Absent or not voting: Bradley, Dean, Franklin, Mayans.
  The Rules Chair was sustained.
  Also, on motion of Rep. Pauls to amend SB 227, the motion did not
prevail. Also, on motion of Rep. Alldritt to amend, the motion did not
prevail.
  Also, roll call was demanded on motion of Rep. Garner and SB 227 be
amended on page 1, in line 15, by striking New Section 1 and on page 2, in
line 13, by deleting all after the period and by deleting all on lines 14 and
15; and on page 3, in line 38, by deleting all after the period and by
deleting all of lines 39 and 40; and on page 5, in line 10, by deleting all
after the period and by deleting all on line 11; and on page 7, in line 3, by
deleting all after the period, and by deleting all in line 4; and in line 41,
by deleting all after the period and by deleting all in line 42; and on page
9, in line 8, by deleting all after the period and by deleting all in line 9;
and on page 10, in line 33, by deleting all after the period and by deleting
all in line 34; and on page 12, in line 13, by deleting all after the period
and by deleting all in line 14; and renumbering the sections accordingly;
  On roll call, the vote was: Yeas 88; Nays 34; Present but not voting 0;
Absent or not voting 3.
  Yeas: Alldritt, Ballard, Ballou, Burroughs, Campbell, Compton, Correll,
Crow, Dahl, Dil lon, Edmonds, Empson, Faber, Feuerborn, Findley, Flaharty,
Flora, Flower, Franklin, Gar ner, Geringer, Gilbert, Grant, Haley, Helgerson,
Henderson, Henry, Holmes, Horst, How ell, Hutchins, Johnson, Johnston, Kirk,
Klein, Phill Kline, Krehbiel, Kuether, Landwehr, Larkin, Lloyd, J. Long, P.
Long, Mays, McClure, McKechnie, McKinney, Minor, Mollen kamp, Morrison,
Myers, Nichols, Osborne, Packer, Palmer, Pauls, E. Peterson, J. Peterson,
Phelps, Pottorff, Powell, Powers, Presta, Reardon, Reinhardt, Ruff,
Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Showalter, Shriver,
Shultz, Spangler, Stone, Storm, Swen son, Thimesch, Toelkes, Toplikar,
Vickrey, Vining, Wagle, Weiland, Wells, Welshimer, Wempe.
  Nays: Adkins, Allen, Aurand, Beggs, Benlon, Boston, Carmody, Cox, Dreher,
Farmer, Freeborn, Gilmore, Glasscock, Gregory, Hayzlett, Huff, Humerickhouse,
Jennison, Kejr, Phil Kline, Lane, Mason, McCreary, Neufeld, O'Connor, O'Neal,
Ray, Shore, Sloan, Tanner, Tomlinson, Weber, Wilk, Wilson.
  Present but not voting: None.
  Absent or not voting: Bradley, Dean, Mayans.
  The motion of Rep. Garner prevailed.

                                 April 2, 1997                              699

  Also, roll call was demanded on motion of Rep. Klein to amend SB 227
on page 9, after line 27, by inserting an additional section as follows:
  ``Sec. 8.  K.S.A. 44-806 is hereby amended to read as follows: 44-806. (a)
Every labor organization operating in the state of Kansas and having 100 or
more members shall file an annual report in writing with the secretary of
state on or before April 15, showing the condition of such labor organization
at the close of business on the December 31 next preceding the date of filing
or at the close of business on the last day of the organization's fiscal year
next preceding the date of filing. The secretary of state may upon showing of
reasonable cause grant an extension of time for filing.
  (b)  The annual report shall be in such form as the secretary of state may
prescribe, and shall show the following facts:
  (1)  The name of the labor organization;
  (2)  the location and mailing address of its office;
  (3)  the name and title of each of its officers and registered business
agents, together with the salaries, wages, bonuses, and other remuneration
paid each, and the mailing address of each; and
  (4)  the date of the regular election of officers of such labor
organization;
  (5)  the rate of its initiation fees, dues, assessments and any other
charges against its members; and
  (6)  an audited statement of the income, expenditures, assets and
liabilities of the labor organization.
  (c)  In lieu of filing an annual report in the form prescribed by the
secretary of state under subsection (b) of this section, the labor
organization may file copies of the reports required to be filed with the
United States department of labor by the labor management reporting and
disclosure act of 1959, 29 U.S.C.A. (section) 431, et seq., as follows:
  (1)  By having on file with the secretary of state a copy of the labor
organization infor mation report form LM-1 which is currently on file with
the United States department of labor; and
  (2)  by filing annually as required in subsection (a) of this section, a
copy of the labor organization annual report form LM-2 or form LM-3 which is
filed with the United States department of labor and covers a reporting
period specified in subsection (a).
  (d)  At the time of filing the annual report it shall be the duty of every
such labor organization to pay the secretary of state an annual fee therefor
in the sum of $5.'';
  On page 12, in line 35, after ``7648'', by inserting ``44-806,'';
  In the title, in line 10, by striking ``business associations'' and
inserting ``organization''; in line 11, after ``17-7648,'' by inserting
``44-806'';
  On roll call, the vote was: Yeas 56; Nays 63; Present but not voting 0;
Absent or not voting 6.
  Yeas: Alldritt, Ballard, Burroughs, Carmody, Correll, Crow, Dillon,
Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Garner, Gilbert,
Grant, Helgerson, Henderson, Henry, Horst, Hutchins, Johnston, Kirk, Klein,
Krehbiel, Kuether, Larkin, J. Long, McClure, McKechnie, McKinney, Minor,
Nichols, Pauls, E. Peterson, Phelps, Powers, Reardon, Rein hardt, Ruff,
Sawyer, Shallenburger, Sharp, Showalter, Shriver, Spangler, Storm, Swenson,
Thimesch, Toelkes, Tomlinson, Vickrey, Weiland, Wells, Welshimer, Wempe.
  Nays: Adkins, Allen, Aurand, Beggs, Benlon, Boston, Bradley, Campbell,
Compton, Cox, Dahl, Dreher, Edmonds, Empson, Faber, Farmer, Freeborn,
Geringer, Gilmore, Glasscock, Gregory, Hayzlett, Holmes, Howell, Huff,
Humerickhouse, Jennison, Johnson, Kejr, Phil Kline, Phill Kline, Landwehr,
Lane, Lloyd, P. Long, Mason, Mays, McCreary, Mollenkamp, Morrison, Myers,
Neufeld, O'Connor, O'Neal, Osborne, Packer, Palmer, J. Peterson, Pot torff,
Powell, Presta, Ray, Schwartz, Shore, Shultz, Sloan, Stone, Tanner, Toplikar,
Vining, Weber, Wilk, Wilson.
  Present but not voting: None.
  Absent or not voting: Ballou, Dean, Haley, Mayans, Samuelson, Wagle.
  The motion of Rep. Klein did not prevail, and SB 227 be passed as
amended.
  Committee report recommending a substitute bill to H. Sub. for SB 36
be adopted; also, roll call was demanded on motion of Rep. Tanner to amend on
page 1, by striking all of lines 15 through 43;

700                           JOURNAL OF THE HOUSE

  By striking all of the lines on pages 2 through 10;
  On page 11, by striking all of lines 1 through 18; following line 18, by
inserting two new sections as follows:
  ``Section 1.  K.S.A. 1996 Supp. 72-6433 shall be and is hereby amended to
read as follows: 72-6433. (a) (1) The board of any district may be
authorized to adopt a local option budget in each school year for a
period of time not to exceed four school years, commencing with the
1997-98 school year, in an amount not to exceed the state prescribed
percentage of the amount of state financial aid determined for the district
in the school year if the board of the district determines that adoption of
such a budget would be in the best interests of the district.
  (2)  No district may adopt a local option budget under authority of
this subsection until a resolution authorizing adoption of such a budget is
passed by the board and published once in a newspaper having general
circulation in the district. The resolution shall be pub lished in
substantial compliance with the following form:
Unified School District No. ______,
                                                  ____________ County, Kansas.
RESOLUTION
Be It Resolved that:
  The board of education of the above-named school district shall be
authorized to adopt a local option budget in each school year for a period of
time not to exceed ______ years in an amount not to exceed ______ % of the
amount of state financial aid determined for the current school year. The
local option budget authorized by this resolution may be adopted, unless a
petition in opposition to the same, signed by not less than 5% of the
qualified electors of the school district, is filed with the county election
officer of the home county of the school district within 30 days after
publication of this resolution. In the event a petition is filed, the county
election officer shall submit the question of whether adoption of the local
option budget shall be authorized to the electors of the school district at
an election called for the purpose or at the next general election, as is
specified by the board of education of the school district.
CERTIFICATE
  This is to certify that the above resolution was duly adopted by the board
of education of Unified School District No. ______,  ____________ County,
Kansas, on the ____________  day of ____________, 19______.
                                          ____________________________________
                                              Clerk of the board of education.
  All of the blanks in the resolution shall be appropriately filled. The
blank preceding the word ``years'' shall be filled with a specific number,
not to exceed the number 4, and the blank preceding the percentage symbol
shall be filled with a specific number. No word shall be inserted in either
of the blanks. The percentage specified in the resolution shall not exceed
the state prescribed percentage. The
  (3) (A)  Subject to the provisions of subpart (B), a resolution
authorizing adoption of a local option budget shall state that the board of
education of the school district shall be authorized to adopt a local option
budget in each school year in an amount not to exceed ______ % of the amount
of state financial aid determined for the current school year. The blank
preceding the percentage symbol shall be filled with a specific number. No
word shall be inserted in the blank. The percentage specified in the
resolution shall not exceed the state prescribed percentage. The resolution
shall specify a definite period of time for which the board shall be
authorized to adopt a local option budget and such period of time shall be
expressed by the specific number of years for which the board shall retain
its authority to adopt a local option budget. No word shall be used to
express the number of years for which the board shall be authorized to adopt
a local option budget.
  (B)  In lieu of the requirements of subpart (A) and at the discretion of
the board, a resolution authorizing adoption of a local option budget may
state that the board of education of the district shall be continuously and
permanently authorized to adopt a local option

                                 April 2, 1997                              701

budget in each school year in an amount not to exceed the state prescribed
percentage of the amount of state financial aid determined for the current
school year.
  (4)  A resolution authorizing adoption of a local option budget
shall be published once in a newspaper having general circulation in the
school district state that the local option budget authorized by the
resolution may be adopted unless a petition in opposition to adop tion of
such budget, signed by not less than 5% of the qualified electors of the
school district, is filed with the county election officer of the home county
of the school district within 30 days after publication. If no petition
as specified above is filed in accordance with the provisions of the
resolution, the board may adopt a local option budget. If a petition is filed
as provided in the resolution, the board may notify the county election
officer of the date of an election to be held to submit the question of
whether adoption of a local option budget shall be authorized. If the board
fails to notify the county election officer within 30 days after a petition
is filed, the resolution shall be deemed abandoned and no like resolution
shall be adopted by the board within the nine months following publication of
the resolution.
  (5)  The requirements of provision (2) do not apply to any district that
is continuously and permanently authorized to adopt a local option budget.
The adoption of a local option budget by such a district shall require a
majority vote of the members of the board and shall require no other
procedure, authorization or approval.
  (2) (6)  If any district is authorized to adopt a local option
budget, but the board of such district chooses, in any year, not to adopt
such a budget, or chooses to adopt such budget in an amount less than the
amount of the district prescribed percentage of the amount of state financial
aid in any school year, such board of education may do so choose.
If the board of any district refrains from adopting a local option budget in
any one or more school years or refrains from budgeting the total amount
authorized for any one or more school years, the authority of such
district to adopt a local option budget shall not thereby be extended beyond
the original period specified in the resolution authorizing adoption of such
budget, nor shall the amount authorized to be budgeted in any succeeding
school year shall not be increased thereby by such
refrainment, nor shall the authority of the district be extended by such
refrainment beyond the period of time specified in the resolution authorizing
adop tion of the local option budget if the resolution specified such a
period of time.
  (3) (7)  Whenever an initial resolution has been adopted under
this subsection, and such resolution specified a lesser percentage than the
state prescribed percentage, the board of the district may adopt one or more
subsequent resolutions under the same procedure as provided for the initial
resolution and subject to the same conditions, and shall be authorized
to increase the percentage as specified in any such subsequent resolution
for. If the initial resolution specified a definite period of time
for which the district is authorized to adopt a local option budget, the
authority to increase such budget by the percentage specified in any
subsequent resolution shall be limited to the remainder of the period of
time specified in the initial resolution. Any percentage specified in a
subsequent resolution or in subsequent resolutions shall be limited so that
the sum of the percentage authorized in the initial res olution and the
percentage authorized in the subsequent resolution or in subsequent reso
lutions is not in excess of the state prescribed percentage in any school
year.
  (4) (8) (A)  Subject to the provisions of subpart (B), the
board of any district that has adopted a local option budget under a
resolution which specified a definite period of time for retention of the
authority to adopt such a budget and levied a tax under authority of
K.S.A. 72-6435, and amendments thereto, may initiate, at any time after the
final levy is certified to the county clerk under any current authorization,
procedures to renew its au thority to adopt a local option budget subject to
the conditions and in the manner specified in provision (1)
provisions (2) and (3) of this subsection and, at four-year
intervals thereafter, may in like manner and subject to like conditions renew
such authorization for successive four-year periods.
  (B)  The provisions of subpart (A) do not apply to the board of any
district that is continuously and permanently authorized to adopt a local
option budget.
  (9)  To the extent the other provisions of this subsection conflict with
this provision, this provision shall control. Any district that is authorized
to adopt a local option budget under a resolution passed and effectuated in
accordance with the provisions of this subsection prior to the effective date
of this act may continue to operate under the resolution which authorized

702                           JOURNAL OF THE HOUSE

the adoption of such budget for the period of time specified in the
resolution or may abandon the resolution and operate under the provisions of
this section as amended by this act. Any such district shall operate under
the provisions of this section as amended by this act after the period of
time specified in the resolution has expired.  In the case of any district
that adopts a local option budget in accordance with this provision and that
also adopts a local/ state partnership budget, the district prescribed
percentage shall be reduced, if necessary, so that the sum of the district
prescribed percentage and the percentage of the amount of state financial aid
adopted as the amount to be budgeted in the local/state partnership budget is
not in excess of the state prescribed percentage.
  (5) (10)  As used in this subsection:
  (A)  ``Authorized to adopt a local option budget'' means that a district
has adopted a resolution under this subsection, has published the same, and
either that the resolution was not protested or that it was protested and an
election was held by which the adoption of a local option budget was
approved.
  (B)  ``District prescribed percentage'' means the percentage specified in a
resolution under which a district is authorized to adopt a local option
budget.  No such The district prescribed percentage may be
equal to, but shall not exceed, the state prescribed
percentage.
  (C)  ``State prescribed percentage'' means 25%.  In the case of any
district that adopts a local/state partnership budget, the state prescribed
percentage applicable to such district shall be reduced by a percentage equal
to the percentage of the amount of state financial aid adopted as the amount
to be budgeted in such local/state partnership budget.
  (b) (1)  The board of any district to which the provisions of this
subsection apply may adopt a local option budget in the 1997-98 school year
if the board of the district determines that adoption of such a budget would
be in the best interests of the district. The adoption of a local option
budget in the 1997-98 school year under authority of this subsection shall
require a majority vote of the members of the board and shall require no
other procedure, authorization or approval. The provisions of this subsection
apply to any district that is authorized to adopt and that adopts a local
option budget in the 1996-97 school year and, in order to be authorized to
adopt a local option budget in the 1997-98 school year, would be required by
operation of this section prior to its amendment by this act to initiate pro
cedures to renew its authority to adopt a local option budget, subject to the
conditions and in the manner specified in subsection (a), after certifying to
the county clerk the levy of a tax for the purpose of financing all or a
portion of the local option budget adopted in the 1996-97 school year.
  (2)  The amount of a local option budget adopted by the board of a district
in the 199798 school year under authority of this subsection shall not exceed
an amount equal to the district prescribed percentage of the amount of state
financial aid determined for the district in the school year. For the
purposes of this provision, the term district prescribed percentage means the
percentage specified in the resolution under which a district is authorized
to adopt a local option budget in the 1996-97 school year.  In the case of
any district that adopts a local option budget under authority of this
subsection and that also adopts a local/state partnership budget, the
district prescribed percentage shall be reduced, if necessary, so that the
sum of the district prescribed percentage and the percentage of the amount of
state financial aid adopted as the amount to be budgeted in the local/state
partnership budget is not in excess of the state prescribed percentage.
  (3)  To the extent the provisions of subsection (a) conflict with this
subsection, the pro visions of this subsection shall control.
  (4)  The provisions of this subsection shall expire on June 30, 1998.
  (c) (1)  There is hereby established in every district that adopts a
local option budget a fund which shall be called the supplemental general
fund. The fund shall consist of all amounts deposited therein or credited
thereto according to law.
  (2)  Subject to the limitation imposed under provision (3), amounts
in the supplemental general fund may be expended for any purpose for which
expenditures from the general fund are authorized or may be transferred to
the general fund of the district or to any program weighted fund or
categorical fund of the district.
  (3)  Amounts in the supplemental general fund may not be expended nor
transferred to the general fund of the district for the purpose of making
payments under any lease-purchase

                                 April 2, 1997                              703

agreement involving the acquisition of land or buildings which is entered
into pursuant to the provisions of K.S.A. 72-8225, and amendments thereto.
  (4)  Any unexpended and unencumbered cash balance remaining in the
supplemental general fund of a district at the conclusion of any school year
in which a local option budget is adopted shall be disposed of as provided in
this subsection. If the district did not receive supplemental general state
aid in the school year and the district is authorized to adopt a local option
budget in the ensuing school year, the total amount of the cash balance re
maining in the supplemental general fund shall be maintained in such fund or
transferred to the general fund of the district. If such a district is not
authorized to adopt a local option budget in the ensuing school year, the
total amount of the cash balance remaining in the supplemental general fund
shall be transferred to the general fund of the district. If the district
received supplemental general state aid in the school year, transferred or
expended the entire amount budgeted in the local option budget for the school
year, and is authorized to adopt a local option budget in the ensuing school
year, the total amount of the cash balance remaining in the supplemental
general fund shall be maintained in such fund or transferred to the general
fund of the district. If such a district is not authorized to adopt a local
option budget in the ensuing school year, the total amount of the cash
balance re maining in the supplemental general fund shall be transferred to
the general fund of the district. If the district received supplemental
general state aid in the school year, did not transfer or expend the entire
amount budgeted in the local option budget for the school year, and is not
authorized to adopt a local option budget in the ensuing school year, the
total amount of the cash balance remaining in the supplemental general fund
shall be trans ferred to the general fund of the district. If the district
received supplemental general state aid in the school year, did not transfer
or expend the entire amount budgeted in the local option budget for the
school year, and is authorized to adopt a local option budget in the ensuing
school year, the state board shall determine the ratio of the amount of
supplemental general state aid received to the amount of the local option
budget of the district for the school year and multiply the total amount of
the cash balance remaining in the supplemental general fund by such ratio. An
amount equal to the amount of the product shall be trans ferred to the
general fund of the district. The amount remaining in the supplemental
general fund may be maintained in such fund or transferred to the general
fund of the district.
  New Sec. 2.  (a) The board of any district may adopt a local/state
partnership budget in each school year in an amount not to exceed 5% of the
amount of state financial aid deter mined for the district in the school year
if the board of the district determines that adoption of such a budget would
be in the best interests of the district. The adoption of a local/state
partnership budget shall require a majority vote of the members of the board
and shall require no other procedure, authorization or approval.
  (b)  There is hereby established in every district that adopts a local
option budget a fund which shall be called the local/state partnership fund.
The fund shall consist of all amounts deposited therein or credited thereto
according to law. Amounts in the local/state partner ship fund may be
expended for any purpose for which expenditures from the special edu cation
fund are authorized or may be transferred to the special education fund of
the district.
  (c) (1)  In each school year, each district that has adopted a local/state
partnership budget is eligible for entitlement to an amount of local/state
partnership aid. Entitlement of a district to local/state partnership aid
shall be determined by the state board as provided in this subsection. The
state board shall:
  (A)  Determine the amount of the assessed valuation per pupil in the
preceding school year of each district in the state;
  (B)  rank the districts from low to high on the basis of the amounts of
assessed valuation per pupil determined under (A);
  (C)  identify the amount of the assessed valuation per pupil located at the
75th percentile of the amounts ranked under (B);
  (D)  divide the assessed valuation per pupil of the district in the
preceding school year by the amount identified under (C);
  (E)  subtract the ratio obtained under (D) from 1.0. If the resulting ratio
equals or exceeds 1.0, the eligibility of the district for entitlement to
local/state partnership aid shall lapse. If the resulting ratio is less than
1.0, the district is entitled to receive local/state

704                           JOURNAL OF THE HOUSE

partnership aid in an amount which shall be determined by the state board by
multiplying the amount of the local/state partnership budget of the district
by such ratio. The product is the amount of local/state partnership aid the
district is entitled to receive for the school year.
  (2)  If the amount of appropriations for local/state partnership aid is
less than the amount each district is entitled to receive for the school
year, the state board shall prorate the amount appropriated among the
districts in proportion to the amount each district is entitled to receive.
  (3)  Payments of local/state partnership aid shall be distributed to
districts at a time to be determined by the state board. The state board
shall certify to the director of accounts and reports the amount due each
district, and the director of accounts and reports shall draw a warrant on
the state treasurer payable to the treasurer of the district. Upon receipt of
the warrant, the treasurer of the district shall credit the amount thereof to
the local/state partnership fund of the district.
  (d) (1)  In each school year, the board of every district that has adopted
a local/state partnership budget may levy an ad valorem tax on the taxable
tangible property of the district for the purpose of financing that portion
of the district's local/state partnership budget which is not financed from
any other source provided by law and for the purpose of paying a portion of
the principal and interest on bonds issued by cities under authority of
K.S.A. 121774, and amendments thereto, for the financing of redevelopment
projects upon property located within the district.
  (2)  The proceeds from the tax levied by a district under authority of this
section, except the proceeds of such tax levied for the purpose of paying a
portion of the principal and interest on bonds issued by cities under
authority of K.S.A. 12-1774, and amendments thereto, for the financing of
redevelopment projects upon property located within the dis trict, shall be
deposited in the local/state partnership fund of the district.
  (3)  No district shall proceed under K.S.A. 79-1964, 79-1964a or 79-1964b,
and amend ments to such sections.'';
  In the title, in line 9, by striking ``authorizing'' and inserting
``revising''; also in line 9, after ``the'', by inserting ``procedure for'';
in line 10, by striking all after the semicolon; in line 11, by striking
``such budgets;'';
  On roll call, the vote was: Yeas 50; Nays 74; Present but not voting 0;
Absent or not voting 1.
  Yeas: Aurand, Ballard, Ballou, Bradley, Compton, Dahl, Edmonds, Faber,
Farmer, Fin dley, Flower, Franklin, Freeborn, Gilmore, Grant, Helgerson,
Henry, Humerickhouse, Hutchins, Johnson, Kejr, Landwehr, Lloyd, P. Long,
Mason, Mayans, Mays, McCreary, McKechnie, Mollenkamp, Morrison, Neufeld,
O'Connor, Osborne, Packer, Palmer, J. Pe terson, Powell, Presta, Ruff,
Schwartz, Shallenburger, Sloan, Tanner, Toplikar, Vickrey, Vining, Wagle,
Weber, Wilk.
  Nays: Adkins, Alldritt, Allen, Beggs, Benlon, Boston, Burroughs, Campbell,
Carmody, Correll, Cox, Crow, Dillon, Dreher, Empson, Feuerborn, Flaharty,
Flora, Garner, Geringer, Gilbert, Glasscock, Gregory, Haley, Hayzlett,
Henderson, Holmes, Horst, Howell, Huff, Jennison, Johnston, Kirk, Klein, Phil
Kline, Phill Kline, Krehbiel, Kuether, Lane, Larkin, J. Long, McClure,
McKinney, Minor, Myers, Nichols, O'Neal, Pauls, E. Peterson, Phelps,
Pottorff, Powers, Ray, Reardon, Reinhardt, Samuelson, Sawyer, Sharp, Shore,
Showalter, Shriver, Shultz, Spangler, Stone, Storm, Swenson, Thimesch,
Toelkes, Tomlinson, Weiland, Wells, Welshimer, Wempe, Wilson.
  Present but not voting: None.
  Absent or not voting: Dean.
  The motion of Rep. Tanner did not prevail.
  Also, on motion of Rep. Aurand to amend H. Sub. for SB 36, Rep.
Larkin requested the question be divided. The question was divided. Part A of
the amendment did not prevail. Part B of the amendment was withdrawn.
  Also, on motion of Rep. Horst to amend H. Sub. for SB 36, the motion
did not prevail.   Also, on motion of Rep. Tanner to amend, the motion did
not prevail.
  Also, on motion of Rep. McKechnie to amend H. Sub. for SB 36, Rep.
O'Neal requested a ruling on the amendment being germane to the bill. The
Rules Vice-Chair ruled the

                                 April 2, 1997                              705

amendment germane. Rep. O'Neal challenged the ruling, the question being
``Shall the Rules Vice-Chair be sustained?'' The Rules Vice-Chair was
sustained. The question then reverted back to the motion of Rep. McKechnie to
amend, which did not prevail.
  Also, on motion of Rep. Haley to amend H. Sub. for SB 36, the motion
did not prevail.
  Also, on motion of Rep. Lloyd H. Sub. for SB 36 be amended on page
11, following line 18, by inserting a new section as follows:
  ``Sec. 3.  K.S.A. 1996 Supp. 72-6410, as amended by section 2 of 1997 House
Bill No. 2031, is hereby amended to read as follows: 72-6410. (a) ``State
financial aid'' means an amount equal to the product obtained by multiplying
base state aid per pupil by the adjusted enrollment of a district.
  (b)  ``Base state aid per pupil'' means an amount of state financial aid
per pupil. Subject to the other provisions of this subsection, the amount of
base state aid per pupil is $3,670. The amount of base state aid per pupil is
subject to reduction commensurate with any reduction under K.S.A. 1996 Supp.
75-6704, and amendments thereto, in the amount of the appropriation from the
state general fund for general state aid. If the amount of appro priations
for general state aid is insufficient to pay in full the amount each district
is entitled to receive for any school year, the amount of base state aid per
pupil for such school year is subject to reduction commensurate with the
amount of the insufficiency.
  (c)  ``Local effort'' means the sum of an amount equal to the proceeds from
the tax levied under authority of K.S.A. 72-6431, and amendments thereto, and
an amount equal to any unexpended and unencumbered balance remaining in the
general fund of the district, except amounts received by the district and
authorized to be expended for the purposes specified in K.S.A. 72-6430, and
amendments thereto, and an amount equal to any unexpended and unencumbered
balances remaining in the program weighted funds of the district, except any
amount in the vocational education fund of the district if the district is
operating an area vocational school, and an amount equal to any remaining
proceeds from taxes levied under authority of K.S.A. 72-7056 and 72-7072, and
amendments thereto, prior to the repeal of such statutory sections, and an
amount equal to the amount deposited in the general fund in the current
school year from amounts received in such year by the district under the
provisions of subsection (a) of K.S.A. 72-1046a, and amendments thereto, and
an amount equal to the amount deposited in the general fund in the current
school year from amounts received in such year by the district pursuant to
contracts made and entered into under authority of K.S.A. 72-6757, and
amendments thereto, and an amount equal to the amount credited to the general
fund in the current school year from amounts distributed in such year to the
district under the provisions of articles 17 and 34 of chapter 12 of Kansas
Statutes Annotated and under the provisions of articles 42 and 51 of chapter
79 of Kansas Statutes Annotated, and an amount equal to 75% of the
federal impact aid of a district.
  (d)  ``Federal impact aid'' means an amount equal to the federally
qualified percentage of the amount of moneys a district receives in the
current school year under the provisions of title I of public law 874 and
congressional appropriations therefor, excluding amounts received for
assistance in cases of major disaster and amounts received under the low-rent
housing program. The amount of federal impact aid defined herein as an amount
equal to the federally qualified percentage of the amount of moneys provided
for the district under title I of public law 874 shall be determined by the
state board in accordance with terms and conditions imposed under the
provisions of the public law and rules and regulations thereunder.'';
  By renumbering sections 3 and 4 as sections 4 and 5, respectively;
  Also on page 11, in line 19, after ``Supp.'', by inserting ``72-6410, as
amended by section 2 of 1997 House Bill No. 2031,'';
  In the title, in line 11, after the semicolon, by inserting ``revising the
definition of local effort;''; also in line 11, after ``Supp.'', by inserting
``72-6410, as amended by section 2 of 1997 House Bill No. 2031, and''; in
line 12, by striking ``section'' and inserting ``sections''; and H. Sub.
for SB 36 be passed as amended.
  Committee report to SB 11 be adopted; also, on motion of Rep. Edmonds
be amended on page 6, in line 14, after ``payment'' by inserting ``or equal
annual payments for not to exceed five years''; also, in line 14, after the
period by inserting ``The lump-sum or annual payments shall be determined by
the system's actuary by using the member's final average

706                           JOURNAL OF THE HOUSE

salary at the time of application, actuarial assumptions and tables currently
in use by the system and the member's attained age.'';
  Also, on further motion of Rep. Edmonds SB 11 be amended on page 70,
after line 32, by inserting the following:
  ``New Sec. 31. (a) The retirement benefit, pension or annuity payments
accruing after June 30, 1997, to each retirant shall be as determined by the
appropriate provision of law, except that such retirement benefit, pension or
annuity payments shall at least be an amount equal to $200 less an amount
equal to 5% for each year of service under 20 years for each such retirant.
  (b)  As used in this section: (1) Retirant means: (A) Any person who is a
member of the retirement system; (B) any person who is a special member of
the retirement system; and (C) any person who is a joint annuitant or
beneficiary of any member described in clause (A) or any special member
described in clause (B); and
  (2)  retirement system means the Kansas public employees retirement system,
the Kan sas police and firemen's retirement system, the retirement system for
judges and the state school retirement system.'';
  And by renumbering sections accordingly;
  Also, on further motion of Rep. Edmonds SB 11 be amended on page 70,
after line 32, by inserting the following:
  ``New Sec. 31.  (a) Each retirant shall be entitled to receive an
additional retirant pay ment as specified in this section. Such additional
retirant payment shall be paid in addition to the amount of the retirement
benefit, pension or annuity payment to which the retirant is otherwise
entitled, and shall be paid in the form of an additional one-time warrant
which shall be issued on October 1, 1997 and each October 1 thereafter.
  (b)  Each such additional retirant payment shall be payable to the retirant
in an amount equal to the amount determined by: (1) Multiplying the amount
equal to 1/2 of the total amount credited to the shared earnings reserve
under subsection (f) of K.S.A. 74-4922 and amendments thereto by the monthly
payment amount of the annual retirement benefit, pension or annuity payment
to such retirant at the rate in effect on July 1 of the year of payment; and
(2) dividing the product obtained by the total amount of all monthly
benefits, pensions or annuities payable to all retirants at the rate in
effect on July 1 of the year of payment. The amount so determined for each
retirant shall be the additional retirant pay ment for such retirant. In no
event shall the payment to a retirant be more than 8.33% of such retirant's
annual benefit.
  (c)  As used in this section:
  (1)  ``Retirant'' means (A) any person who is a member of a retirement
system and who retired prior to July 1 of the year preceding the year of
payment, (B) any person who is a special member of a retirement system and
who retired prior to July 1 of the year preceding the year of payment, (C)
any person who is a joint annuitant or beneficiary of any member described in
clause (A) or any special member described in clause (B), and (D) any insured
disability benefit recipient.
  (2)  ``Retirement system'' means the Kansas public employees retirement
system, the Kansas police and firemen's retirement system, the state school
retirement system and the retirement system for judges.
  (3)  ``Insured disability benefit recipient'' means any person receiving an
insured disa bility benefit under K.S.A. 74-4927, and amendments thereto,
prior to July 1 of the year preceding the year of payment.
  (d)  The board of trustees of the Kansas public employees retirement system
shall de termine annually the amount necessary to finance the additional
retirant payments to insured disability benefit recipients and shall transfer
that amount from the retirant dividend pay ment reserve to the group
insurance reserve of the Kansas public employees retirement fund. The board
of trustees shall contract with the insurance company providing the insured
disability benefits under K.S.A. 74-4927 and amendments thereto to pay the
retirant divi dend payments payable to insured disability benefit recipients
under this act and the cost of such contract shall be paid from the group
insurance reserve of the Kansas public em ployees retirement fund.

                                 April 2, 1997                              707

  Sec. 32.  K.S.A. 1996 Supp. 74-4922 is hereby amended to read as follows:
74-4922. The executive secretary shall maintain such records as are necessary
to determine the fol lowing reserves of the fund.
  (a)  Member's accumulated contribution reserve. This reserve shall be
maintained for each member and for each member having a vested benefit. Each
such reserve account shall be credited with the employee's contributions upon
receipt thereof and shall be cred ited on June 30 each year with interest:
(1) At the actuarial assumption rate adopted by the board on the balance in
the employee's account as of the preceding December 31 for those who first
became members prior to July 1, 1993; and (2) 4% for those who first became
members on and after July 1, 1993. For the purposes of crediting interest
upon accumulated contributions, the term member shall include the beneficiary
of a member during the twelve-month period following the death of a member
and the beneficiary of a member pursuant to subsection (6) of K.S.A. 74-4918
and amendments thereto during any period commencing on the date of death of
such member and ending on the date that the member would have attained
retirement age. Refunds of employee's accumulated contributions prior to
retirement shall be made from this reserve. Upon commencement of payments of
the retirement benefit, the amount in this reserve account for the retiring
member or members, shall be transferred to the retirement benefit payment
reserve.
  (b)  Retirement benefit accumulation reserve. This reserve shall be
credited with the portion of employer contributions for retirement benefits
(both for prior service and for participating service) and with income of the
fund not otherwise directed by law to a dif ferent reserve. The board shall
credit interest to all other reserves and reserve accounts as provided by law
at rates determined by the board. Interest so credited shall be transferred
from the retirement benefit accumulation reserve. Separate reserve accounts
shall not be maintained for each participating employer joining the system on
the first entry date. The board shall determine whether or not separate
reserve accounts shall be maintained for each participating employer joining
the system after the first entry date.
  (c)  Retirement benefit payment reserve. (i) This reserve will be
credited with the amount transferred from the member's accumulated
contributions reserve and from the retirement benefit accumulation reserve
and with interest allocated to this reserve at the rate deter mined each year
by the board. This reserve shall be charged with payments of retirement
benefits including payments upon death of the excess of member's accumulated
contribu tions over retirement benefit payments paid to date of death.
Annually, upon receipt of the actuarial valuation as of the end of the
previous fiscal year the board shall cause certain adjustments to be made
which shall be made prior to the end of the fiscal year immediately following
the fiscal year for which the actuarial valuation is applicable.
  (ii)  The amount of these adjustments shall be the difference between the
amount re quired by the current actuarial valuation and the amount required
by the previous year's actuarial valuation plus amounts transferred to this
reserve less amounts paid out of this reserve during the fiscal year to be
adjusted. Such adjustments required to maintain this reserve on an actuarial
reserve basis as of June 30 of the previous fiscal year shall be ac
complished by transfers to or from, as applicable, the retirement benefit
accumulation re serve.
  (d)  Expense reserve. This reserve shall be credited with interest
allocated to this reserve at the rate determined each year by the board. It
shall be charged with payments of all expenses incurred in connection with
the administration of the system.
  (e)  Group insurance reserve. This reserve shall be credited with the
employer contri butions required to pay the cost for the plan of death and
long-term disability benefits under K.S.A. 74-4927, and amendments thereto,
with any dividend or retrospective rate credit allowed by any insurance
company or companies contracted with by the board for such plan, and with
interest allocated to this reserve at the rate determined each year by the
board. This reserve shall be charged with the amount of the payments required
to provide such plan of death and long-term disability benefits.
  (f)  Shared earnings reserve. Each year prior to October 1,
this reserve shall be credited with an amount equal to 1/2 of 1% of the total
market value of the fund as of the immediately preceding June 30, if the
time-weighted rate of return rounded to one decimal point is equal to or
greater than 10%. This reserve shall be charged with payments of any
additional

708                           JOURNAL OF THE HOUSE

retirant payment as provided in section 31 and amendments thereto. No
interest shall be credited to this reserve.'';
  And by renumbering sections accordingly;
  Also on page 70, in line 36, before ``74-4927,'' by inserting ``74-4922,'';
  On page 1, in the title, in line 18, before ``audits'' by inserting
``creation of shared earnings reserve; retirant payment;''; in line 22,
before ``74-4927,'' by inserting ``74-4922,'';
  Also, on motion of Rep. Toplikar to amend SB 11, the motion did not
prevail.
  Also, roll call was demanded on motion of Rep. Nichols to amend SB 11
on page 70, after line 32, by inserting the following:
  ``New Sec. 31.  (a) The retirement benefit, pension or annuity payments
accruing after June 30, 1997, to each retirant and each local school
annuitant, shall be increased by an amount equal to 2% of the retirement
benefit, pension or annuity payment in effect on July 1, 1997, from the
retirant's retirement system and shall be paid by such retirement system to
the retirant and the local school annuitant during such period.
  (b)  As used in this section:
  (1)  ``Retirant'' means (A) any person who is a member of a retirement
system and who retired prior to July 1, 1996, (B) any person who is a special
member of a retirement system and who retired prior to July 1, 1996, (C) any
person who is a joint annuitant or beneficiary of any member described in
clause (A) or any special member described in clause (B), and (D) any insured
disability benefit recipient.
  (2)  ``Retirement system'' means the Kansas public employees retirement
system, the Kansas police and firemen's retirement system, the state school
retirement system and the retirement system for judges.
  (3)  ``Local school annuitant'' means (A) any person who is an annuitant
with 10 or more years of service, who is receiving an annuity, whose annuity
is not included, in whole or in part, in payments made to such school
district under K.S.A. 72-5512b and amendments thereto and who is not a member
of group I or of group II as defined in K.S.A. 72-5518 and amendments
thereto, and (B) any person who is receiving an annuity and who retired prior
to September 1, 1981.
  (4)  ``Insured disability benefit recipient'' means any person receiving an
insured disa bility benefit under K.S.A. 74-4927 and amendments thereto prior
to July 1, 1996.'';
  And by renumbering sections accordingly;
  On page 1, in the title, in line 18, after the semicolon, by inserting
``postretirement benefit increase;'';
  On roll call, the vote was: Yeas 56; Nays 66; Present but not voting 0;
Absent or not voting 3.
  Yeas: Alldritt, Ballard, Bradley, Burroughs, Correll, Crow, Dillon,
Feuerborn, Findley, Flaharty, Flora, Flower, Garner, Gilbert, Glasscock,
Grant, Haley, Henderson, Henry, Horst, Humerickhouse, Hutchins, Johnston,
Kirk, Klein, Krehbiel, Kuether, Larkin, J. Long, Mays, McClure, McKechnie,
McKinney, Minor, Nichols, Packer, Pauls, E. Peterson, Phelps, Reardon, Ruff,
Sawyer, Sharp, Showalter, Sloan, Spangler, Stone, Storm, Swenson, Thi mesch,
Toelkes, Vickrey, Weiland, Wells, Welshimer, Wempe.
  Nays: Allen, Aurand, Ballou, Beggs, Benlon, Boston, Campbell, Carmody,
Compton, Cox, Dahl, Dreher, Edmonds, Empson, Faber, Farmer, Franklin,
Freeborn, Geringer, Gilmore, Gregory, Hayzlett, Holmes, Howell, Huff,
Jennison, Johnson, Kejr, Phil Kline, Phill Kline, Landwehr, Lane, Lloyd, P.
Long, Mason, Mayans, McCreary, Mollenkamp, Morrison, My ers, Neufeld,
O'Connor, O'Neal, Osborne, Palmer, J. Peterson, Pottorff, Powell, Powers,
Presta, Ray, Reinhardt, Samuelson, Schwartz, Shallenburger, Shore, Shriver,
Shultz, Tanner, Tomlinson, Toplikar, Vining, Wagle, Weber, Wilk, Wilson.
  Present but not voting: None.
  Absent or not voting: Adkins, Dean, Helgerson.
  The motion of Rep. Nichols did not prevail.
  Also, on motion of Rep. Correll to amend SB 11, the motion did not
prevail.
  Also, on motion of Rep. Mollenkamp SB 11 be amended on page 15, in
line 39, after ``system'' by inserting ``. Employee shall include any
appointed or elective officer whose compensation is equal to or exceeds
$5,000 per year regardless of whether their employment requires at least
1,000 hours of work per year'';

                                 April 2, 1997                              709

  Also, on motion of Rep. Carmody SB 11 be amended on page 70, after
line 32, by inserting the following:
  ``New Sec. 31.  (a) The secretary of administration is authorized to
provide the following from the closure term life insurance fund:
  (1)  The death benefits authorized by K.S.A. 1996 Supp. 75-4373, and
amendments thereto, on a self-insured basis; and
  (2)  the costs of self-administering such benefits or of contracting with a
third party for administration of the benefits.
  (b)  Upon request of the secretary of administration, the director of
accounts and reports shall make periodic transfers during fiscal year 1997
and fiscal year 1998 in amounts spec ified by the secretary of administration
from the state hospital closure account of the state general fund at the
department of social and rehabilitation services to the closure term life
insurance fund of the department of administration.
  (c)  Upon certification by the secretary of administration to the director
of accounts and reports that the unencumbered balance in the closure term
life insurance fund is insufficient to pay an amount for which the fund is
liable and that there are insufficient funds in the state hospital closure
account to transfer pursuant to subsection (b), the director of accounts and
reports shall transfer an amount equal to the insufficiency from the state
general fund to the closure term life insurance fund.
  (d)  If the death benefits authorized by K.S.A. 1996 Supp. 75-4373, and
amendments thereto, are provided on a self-insured basis pursuant to
subsection (a), the net amount of the death benefit shall be equal to 150% of
the annual rate of compensation of the covered state officer or employee, as
of the date the covered state officer or employee is laid off.'';
  And by renumbering sections accordingly;
  On page 1, in the title, in line 10, by striking ``and'' and inserting a
comma; in line 11, after ``pensions'' by inserting ``and benefits of public
officers and employees''; in line 18, after the semicolon, by inserting
``funding and administration of death benefits for certain state officers and
employees;'';
  Also, on motion of Rep. Franklin to amend SB 11, the motion did not
prevail. Also, on motion of Rep. Powers to amend, the motion did not prevail.
Also, on motion of Rep. Sloan to amend, the motion did not prevail and the
bill be passed as amended.
  Committee report to SB 18 be adopted; also, on motion of Rep.
Shallenburger to amend, Rep. Larkin requested the question be divided. The
question was divided. On Part A, SB 18 be amended on page 5, by
striking all of lines 32 and 33 and inserting the following sections:
  ``Sec. 6.  K.S.A. 46-235 is hereby amended to read as follows: 46-235.
(a) No state officer or employee shall accept compensation for
performance of official duties, other than that to which such person is
entitled for such performance. No person shall pay or offer to pay any state
officer or employee any compensation for performance of official duties,
except a state officer or employee performing official duties in making
payments to state officers and employees. The receipt of wages or salary from
an individual's non-state employer during a period of service as a state
officer or employee shall not be construed as compensation for performance of
official duties.
  (b) (1)  Except as otherwise specifically provided in this subsection,
no legislator, state officer elected on a statewide basis, full time state
officer appointed subject to confirmation by the senate or the spouse of any
such officer shall accept directly or indirectly any present, promised or
contingent moneys, compensation, expenses or other allowance or economic
opportunity:
  (A)  Which is paid or financed in whole or in part from moneys or funds of,
or which are budgeted for expenditures by, any agency of the state, or any
body politic and corporate or other entity created by any law of the state,
except compensation and allowances specif ically authorized by law for duties
and service of the legislator, state officer elected on a statewide basis,
full time state officer appointed subject to confirmation by the senate;
  (B)  under any contract or bond or any kind of debt instrument issued by
any agency of the state or any body politic and corporate or other entity
created by any law of the state; or

710                           JOURNAL OF THE HOUSE

  (C)  under any contract issued by the any political or taxing subdivision
of the state which receives an amount equal to 10% or more of the revenues
funding its budget of expenditures in any fiscal year from any agency of the
state.
  (2)  The provisions of part (1) of this subsection shall not apply to:
  (A)  Any contract or bond awarded or issued by any agency of the state or
any body politic and corporate or other entity created by any law of the
state upon the basis of a pure competitive bid or in accordance with an
established fee schedule;
  (B)  moneys, compensation, allowances or economic opportunities received
from any agency of the state or any body politic and corporate or other
entity created by any law of the state, if such benefit accrues to members of
the general public or a specific class of individuals other than members of
the legislature;
  (C)  the refund of taxes by the state or any political or taxing
subdivision;
  (D)  benefits received pursuant to the order of any court or an action
brought in accor dance with the Kansas administrative procedure act;
  (E)  the receipt of compensation, expenses or other allowances for service
to any univer sity under the jurisdiction of the state board of regents, a
community college or a unified school district; or
  (F)  the receipt of compensation, expenses or other allowances for service
in the classified service under the Kansas civil service act by the spouse of
any such officer.
  (3)  Any person violating the provisions of this subsection shall be guilty
of a class A misdemeanor.
  (c)  Except as otherwise specifically provided in this subsection, no
person, in which any legislator, state officer elected on a statewide basis,
full-time state officer appointed subject to confirmation by the senate or
the spouse of any such officer has a substantial interest or any kind of
ownership interest, shall accept any compensation or economic opportunity
from any agency of the state, any body politic and corporate or other entity
created by any law of the state or any political or taxing subdivision of the
state which receives an amount equal to 10% or more of the revenues funding
its budget of expenditures in any fiscal year from any agency of the state.
The provisions of this subsection shall not apply to ownership or a
substantial interest consisting of stocks or bonds which are publicly traded
or bonds issued by agencies of the state or bodies politic or corporate or
other entities created by any law of the state.
  Sec. 7.  K.S.A. 46-242 is hereby amended to read as follows: 46-242. (a) No
state officer or employee shall accept a representation case before a state
agency where such officer or employee knows or should know that it is
obviously without merit and is being offered with intent to obtain improper
influence over a state agency.
  (b)  No state officer or employee shall use threat or promise of official
action in an attempt to influence a state agency in any representation case.
  (c)  Except as otherwise provided in this subsection, no legislator, or
other representative of any firm of which any legislator is a member or by
which any legislator is employed, shall represent any person in any
representation case before any state agency except cases in which the
legislator is representing only the personal interest of the legislator, the
interests of a member of the immediate family of such legislator or a person
in which such legislator has a substantial interest. The provisions of this
subsection shall not apply to representation in workers compensation cases,
before the board of tax appeals and proceedings in accor dance with the
Kansas administrative procedure act.
  Also, on Part B of the motion of Rep. Shallenburger, SB  18 be
amended
  Sec. 8.  K.S.A. 1996 Supp. 74-8904 is hereby amended to read as follows:
74-8904. Except as otherwise limited by this act, the authority shall have
the following powers to:
  (a)  Sue and be sued;
  (b)  have a seal and alter such seal;
  (c)  make and alter bylaws for its organization and internal management;
  (d)  adopt such rules and regulations as may be necessary to carry out the
purposes of this act;
  (e)  acquire, hold and dispose of real and personal property for its
corporate purposes;
  (f)  appoint officers, agents and employees, prescribe their duties and
qualifications and fix their compensation;

                                 April 2, 1997                              711

  (g)  borrow money and to issue notes, bonds and other obligations pursuant
to K.S.A. 74-8905, and amendments thereto, whether or not the interest on
which is subject to federal income taxation, and to provide for the rights of
the lenders or holders thereof;
  (h)  purchase notes or participations in notes evidencing loans which are
secured by mortgages or security interests and to enter into contracts in
that regard;
  (i)  make secured or unsecured loans for any of the purposes for which
bonds of the authority may be issued under this act or to low and moderate
income multifamily rental housing projects participating in programs
established in section 42 of the federal internal revenue code, and provide
financing for housing projects and programs in participation with programs
established by the United States department of housing and urban development
or the Kansas department of commerce and housing; except as otherwise
provided in this subsection, nothing in this act shall be construed to
authorize the authority to make loans directly to individuals to finance
housing developments;
  (j)  sell mortgages and security interests at public or private sale, to
negotiate modifi cations or alterations in mortgage and security interests,
to foreclose on any mortgage or security interest in default or commence any
action to protect or enforce any right conferred upon it by any law,
mortgage, security agreement, contract or other agreement, and to bid for and
purchase property which was the subject of such mortgage or security interest
at any foreclosure or at any other sale, to acquire or take possession of any
such property, and to exercise any and all rights as provided by law for the
benefit or protection of the authority or mortgage holders;
  (k)  collect fees and charges in connection with its loans, bond
guarantees, commitments and servicing, including, but not limited to,
reimbursement of costs of financing as the authority shall determine to be
reasonable and as shall be approved by the authority;
  (l)  make and execute contracts for the servicing of mortgages acquired by
the authority pursuant to this act, and to pay the reasonable value of
services rendered to the authority pursuant to those contracts;
  (m)  enter into agreements with and accept gifts, grants, loans and other
aid from the federal government, the state, any state agency, any political
subdivision of the state, or any person or corporation, foundation or legal
entity, and to agree to and comply with any conditions attached to federal
and state financial assistance not inconsistent with the pro visions of this
act;
  (n)  invest moneys of the authority not required for immediate use,
including proceeds from the sale of any bonds, in such manner as the board
shall determine, subject to any agreement with bondholders stated in the
authorizing resolution providing for the issuance of bonds;
  (o)  procure insurance against any loss in connection with its programs,
property and other assets;
  (p)  provide technical assistance and advice to the state or political
subdivisions of the state and to enter into contracts with the state or
political subdivisions of the state to provide such services. The state or
political subdivisions of the state are hereby authorized to enter into
contracts with the authority for such services and to pay for such services
as may be provided them;
  (q)  establish accounts in one or more depositories;
  (r)  lease, acquire, construct, sell and otherwise deal in and contract
concerning any facilities;
  (s)  have and exercise all of the powers granted to the public housing
authorities by the state, except that the authority shall not have the power
of eminent domain;
  (t)  do any and all things necessary or convenient to carry out purposes of
the authority and exercise the powers given and granted in this act;
  (u)  assist minority businesses in obtaining loans or other means of
financial assistance. The terms and conditions of such loans or financial
assistance, including the charges for interest and other services, will be
consistent with the provisions of this act. In order to comply with this
requirement, efforts must be made to solicit for review and analysis pro
posed minority business ventures. Basic loan underwriting standards will not
be waived to inconsistently favor minority persons or businesses from the
intent of the authority's lending practices; and

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  (v)  form one or more subsidiary corporations under K.S.A. 17-6001 et
seq., and amend ments thereto, in accordance with the procedures therein
contained. Each subsidiary cor poration shall be subject to the same
restrictions and limitations as to the powers and purposes to which the
authority is subject. The authority may delegate any of its powers,
obligations and duties to any subsidiary corporation by inclusion of such
powers, obligations and duties in the articles of incorporation of the
subsidiary corporation. Subsidiary corpo rations so formed shall constitute
legal entities separate and distinct from each other, the authority and the
state. The authority shall not be liable for the debts or obligations or for
any actions or in actions of its subsidiary corporations unless the authority
expressly agrees otherwise in writing. The authority may make loans or grants
to a subsidiary corporation from time to time to enable the subsidiary
corporation to carry out its purposes. The mem bers of the authority shall
constitute all of the directors of each subsidiary corporation;
  (w)  adopt rules and regulations establishing guidelines for the awarding
of professional services contracts for state agencies, in accordance with
section 9; and
  (x)  adopt rules and regulations establishing guidelines for the acceptance
of competitive bids upon the sale of bonds by any agency of the state, any
body politic and corporate or any other entity created by any law of the
state.
  The state, any municipality or any state commission, public authority,
agency, officer, department, board or division authorized and empowered to
enter into agreements with, to grant, convey, lease or otherwise transfer any
property to, or to otherwise transact business with the authority, shall have
the same authorization and power to engage in these activities with each
subsidiary corporation of the authority.
  One or more such subsidiary corporation may be formed for purposes of
establishing state tax credit equity funds to assist in the development of
low-income and middle-income housing and obtain financing through
participation in the program established in section 42 of the federal
internal revenue code.
  Actions of the authority or any subsidiary corporation relating to housing
pursuant to this subsection (v) shall be carried out in accordance with any
terms, conditions and limitations relating to policy issues regarding
housing, as established by the secretary of commerce and housing.
  New Sec. 9.  (a) Except as otherwise specifically provided by law, all
contracts for the providing of professional services for state agencies shall
be awarded in conformance with guidelines established pursuant to rules and
regulations adopted by the board of directors or the Kansas development
finance authority upon the basis of competitive bids. All bids shall be
solicited by notice published in the Kansas Register. Notice also shall be
published not less than once in the journal or other publication of the
profession for which such services are to be contracted. The director of
purchases and officers and employees of all state agencies shall provide such
board with such information, records and assistance as the board may require
in its deliberations and determination in awarding such contracts. When in
the judgment of the board of directors of the Kansas development finance
authority, an agency emergency requires immediate performance of services,
competitive bids need not be re quired.
  (b)  As used in this act, ``professional services'' shall mean and include
all services pro vided under contract to agencies of the state by any member
of profession, the members of which are licensed or regulated under the laws
of the state of Kansas.
  Sec. 10.  K.S.A. 75-3738 is hereby amended to read as follows: 75-3738.
Except as oth erwise provided in new section 9, the director of
purchases shall:
  (a)  Purchase, rent or otherwise provide for the furnishing of supplies,
materials, equip ment or contractual services for all state agencies.
  (b)  Have power to authorize any state agency to purchase directly certain
specified supplies, materials, equipment or contractual services under
prescribed conditions and pro cedures.
  (c)  Prescribe the manner in which supplies, materials and equipment shall
be purchased, delivered and distributed.
  (d)  Prescribe the time, manner and authentication of making requisitions
for supplies, materials, equipment and contractual services.

                                 April 2, 1997                              713

  (e)  Establish standards of quality and quantity and develop standard
specifications in consultation with the several state agencies.
  (f)  Prescribe the manner of making chemical and physical tests of samples
submitted with bids and samples of deliveries to determine compliance with
specifications and the manner in which state agencies shall inspect all
deliveries of supplies, materials and equip ment.
  (g)  Prescribe the amounts and form of, accounting for and disposition of
any deposit or bond required to be submitted with a bid or a contract and the
amount of any such deposit or bond to be given for the faithful performance
of a contract.
  (h)  Require reports by state agencies of stocks of supplies, materials and
equipment on hand and prescribe the form of such reports and deliver copies
of such reports to the director of purchases and the director of accounts and
reports.
  Sec. 11.  K.S.A. 1996 Supp. 75-3739 is hereby amended to read as follows:
75-3739. In the manner as provided in this act and rules and regulations
established thereunder:
  (a)  Except as otherwise provided in subsection (j), all contracts
for construction and repairs, and all purchases of and contracts for
supplies, materials, equipment and contractual services to be acquired for
state agencies shall be based on competitive bids, except that competitive
bids need not be required: (1) For contractual services when, in the judgment
of the director of purchases, no competition exists; or (2) when, in the
judgment of the director of purchases, chemicals and other material or
equipment for use in laboratories or experimental studies by state agencies
are best purchased without competition, or where rates are fixed by law or
ordinance; or (3) when, in the judgment of the director of purchases, an
agency emergency requires immediate delivery of supplies, materials or
equipment, or immediate performance of services; or (4) when any statute
authorizes another procedure or provides an exemption from the provisions of
this section.
  The director of purchases shall make a detailed report at least once in
each calendar quarter to the legislative coordinating council and the
chairpersons of the senate committee on ways and means and the house of
representatives committee on appropriations of all contracts for goods,
supplies, materials, equipment or contractual services entered into with out
competitive bids under subsections (a)(1), (a)(2), (a)(3) or (g).
  (b)  Except as otherwise provided in subsection (j), if the amount of
the purchase is estimated to exceed approximately $10,000, sealed bids shall
be solicited by notice published once in the Kansas register not less than 10
days before the date stated therein for the opening of such bids. The
director of purchases may waive this publication of notice re quirement when
the director determines that a more timely procurement is in the best
interest of the state. The director of purchases also may designate a trade
journal for such publication. The director of purchases also shall solicit
such bids by sending notices by mail to prospective bidders. All bids shall
be sealed when received and shall be opened in public at the hour stated in
the notice. The director of purchases shall make a detailed report at least
once in each calendar quarter to the legislative coordinating council and the
chairper sons of the senate committee on ways and means and the house of
representatives committee on appropriations of all cases when the publication
of notice of bid solicitations in the Kansas register have been waived under
this subsection.
  (c)  Except as otherwise provided in subsection (j), all purchases
estimated to exceed approximately $5,000 but not more than $10,000, shall be
made after receipt of sealed bids following at least three days' notice
posted on a public bulletin board in the office of the director of purchases.
The director of purchases also may solicit sealed bids by mail in such cases
in like manner as provided in subsection (b).
  (d)  Except as otherwise provided in subsection (j), all purchases
estimated to be less than $5,000 may be made after the receipt of three or
more bid solicitations by telephone and after receipt of sealed bids
following at least three days' notice posted on a public bulletin board in
the office of the director of purchases. Such bids shall be recorded as
provided in subsection (e) of K.S.A. 75-3740 and amendments thereto. With the
approval of the sec retary of administration, the director of purchases may
delegate authority to any state agency to make purchases of less than $10,000
either on the open market or under certain pre scribed conditions and
procedures. The director of purchases shall make a report at least once in
each calendar quarter to the legislative coordinating council and the
chairpersons

714                           JOURNAL OF THE HOUSE

of the senate committee on ways and means and the house of representatives
committee on appropriations of all current and existing delegations of
authority under this subsection to state agencies.
  (e)  Subject to the provisions of subsection (d), contracts and purchases
shall be based on specifications approved by the director of purchases. When
deemed applicable and fea sible by the director of purchases, such
specifications shall include either energy efficiency standards or
appropriate life cycle cost formulas, or both, for all supplies, materials,
equip ment and contractual services to be purchased by the state. The
director of purchases may reject a contract or purchase on the basis that a
product is manufactured or assembled outside the United States. No such
specifications shall be fixed in a manner to effectively exclude any
responsible bidder offering comparable supplies, materials, equipment or con
tractual services.
  (f)  Notwithstanding anything herein to the contrary, all contracts with
independent con struction concerns for the construction, improvement,
reconstruction and maintenance of the state highway system and the
acquisition of rights-of-way for state highway purposes shall be advertised
and let as now or hereafter provided by law.
  (g)  The director of purchases may authorize state agencies to contract for
services and materials with other state agencies, or with federal agencies,
political subdivisions of Kansas, agencies of other states or subdivisions
thereof, or private nonprofit educational institutions, without competitive
bids.
  (h)  Except as otherwise specifically provided by law, no state agency
shall enter into any lease of real property without the prior approval of the
secretary of administration. Such state agency shall submit to the secretary
of administration such information relating to any such proposed lease as the
secretary may require. The secretary of administration shall either approve,
modify and approve or reject any such proposed lease.
  (i)  The director of purchases shall require all bidders on state contracts
to disclose all substantial interests held by the bidder in the state.
  (j)  The final determination and awarding of all contracts for the
providing of professional services for state agencies, shall be awarded in
conformance with guidelines established pursuant to rules and regulations
adopted by the board of directors of the Kansas develop ment finance
authority and as provided by K.S.A. 74-8904 and new section 9, and amend
ments thereto.
  Sec. 12.  K.S.A. 1996 Supp. 75-3740 is hereby amended to read as follows:
75-3740. (a) Except as provided by K.S.A. 1996 Supp. 75-3740b, all contracts
and purchases made by or under the supervision of the director of purchases
or any state agency for which competitive bids are required shall be awarded
to the lowest responsible bidder, taking into consideration conformity with
the specifications, terms of delivery, and other conditions imposed in the
call for bids.
  (b)  Except as otherwise provided in subsection (g), the director of
purchases shall have power to decide as to the lowest responsible bidder for
all purchases, but if:
  (1)  The dollar amount of the bid received from the lowest responsible
bidder from within the state is identical to the dollar amount of the bid
received from the lowest re sponsible bidder from without the state, the
contract shall be awarded to the bidder from within the state;
  (2)  in the case of bids for paper products specified in K.S.A. 1996 Supp.
75-3740b, the dollar amounts of the bids received from two or more lowest
responsible bidders are iden tical, the contract shall be awarded to the
bidder whose bid is for those paper products containing the highest
percentage of recyclable materials; and
  (3)  in the case of bids for paper products specified in K.S.A. 1996 Supp.
75-3740b, the dollar amounts of the bids received from two or more lowest
responsible bidders are iden tical, the contract shall be awarded to the
bidder whose bid is for those paper products containing the highest
percentage of recycled materials.
  (c)  Except as otherwise provided in subsection (g), any or all bids
may be rejected, and a bid shall be rejected if it contains any material
alteration or erasure. The director of purchases may reject the bid of any
bidder who is in arrears on taxes due the state, who is not properly
registered to collect and remit taxes due the state or who has failed to
perform satisfactorily on a previous contract with the state. The secretary
of revenue is hereby au

                                 April 2, 1997                              715

thorized to exchange such information with the director of purchases as is
necessary to effectuate the preceding sentence notwithstanding any other
provision of law prohibiting disclosure of the contents of taxpayer records
or information. Prior to determining the lowest responsible bidder on
contracts for construction of buildings or for major repairs or im provements
to buildings for state agencies, the director of purchases shall consider:
(1) The criteria and information developed by the secretary of
administration, with the advice of the state building advisory commission to
rate contractors on the basis of their performance under similar contracts
with the state, local governmental entities and private entities, in addition
to other criteria and information available, and (2) the recommendations of
the project architect, or, if there is no project architect, the
recommendations of the secretary of administration or the agency architect
for the project as provided in K.S.A. 75-1254, and amendments thereto. In any
case where competitive bids are required and where all bids are rejected, new
bids shall be called for as in the first instance, unless otherwise expressly
provided by law.
  (d)  Before the awarding of any contract for construction of a building or
the making of repairs or improvements upon any building for a state agency,
the director of purchases shall receive written approval from the state
agency for which the building construction project has been approved, that
the bids generally conform with the plans and specifications prepared by the
project architect, by the secretary of administration or by the agency ar
chitect for the project, as the case may be, so as to avoid error and mistake
on the part of the contractors. In all cases where material described in a
contract can be obtained from any state institution, the director of
purchases shall exclude the same from the contract.
  (e)  All bids with the names of the bidders and the amounts thereof,
together with all documents pertaining to the award of a contract, shall be
made a part of a file or record and retained by the director of purchases for
five years, unless reproduced as provided in K.S.A. 75-3737, and amendments
thereto, and shall be open to public inspection at all reasonable times.
  (f)  As used in this section and in K.S.A. 75-3741, and amendments thereto,
``project architect'' shall have the meaning ascribed thereto in K.S.A.
75-1251, and amendments thereto.
  (g)  The final determination and awarding of all contracts for the
providing of profes sional services for state agencies, shall be awarded in
conformance with guidelines estab lished pursuant to rules and regulations
adopted by the board of directors of the Kansas development finance authority
and as provided in K.S.A. 74-8904 and new section 9, and amendments
thereto.
  Sec. 13.  K.S.A. 75-3784 is hereby amended to read as follows: 75-3784.
(a) Except as otherwise provided in subsection (b), the secretary of
administration is hereby authorized to contract for ancillary technical
services for any project for the construction of a building or for repairs or
improvements to a building for a state agency which are not provided by any
firm or state agency providing architectural services or engineering services
for the project. Such ancillary technical services shall include but not be
limited to geology services and other soil or subsurface investigation and
testing services, surveying, adjusting and bal ancing of air conditioning,
ventilating, heating and other mechanical building systems, test ing and
consultant services. Such contract shall not be subject to the provisions of
K.S.A. 75-3739, and amendments thereto, or to the provisions of the acts
contained in articles 54 or 58 of chapter 75 of the Kansas Statutes
Annotated. Expenditures for such ancillary tech nical services shall be made
from funds appropriated for the project or available therefor.
  (b)  The final determination and awarding of all contracts for the
providing of profes sional services for state agencies shall be awarded in
conformance with guidelines established pursuant to rules and regulations
adopted by the board of directors of the Kansas develop ment finance
authority and as provided in K.S.A. 74-8904 and new section 9, and amend
ments thereto.
  Sec. 14.  K.S.A. 75-3799 is hereby amended to read as follows: 75-3799. (a)
Upon re quest of the chief administrative officer of a state agency and
subject to the approval of the secretary of administration, the director of
purchases may convene a financial services ne gotiating committee to obtain
financial services for the state agency under this section.

716                           JOURNAL OF THE HOUSE

  (b)  Each financial services negotiating committee shall be composed of (1)
the director of purchases, or a person designated by the director of
purchases, (2) the chief administrative officer of the state agency needing
financial services, or a person designated by the officer, and (3) the
director of accounts and reports, or a person designated by the director of
accounts and reports.
  (c)  The financial services negotiating committee is authorized to
negotiate contracts with qualified parties to provide financial services,
including services relating to installment pur chase, lease, or
lease-purchase of equipment or to other financial related services needed by
the state agency.
  (d)  Prior to negotiating for financial services, the committee shall
advertise for propos als, negotiate with one or more of the firms submitting
proposals and select from among those submitting such proposals the party to
contract with for the purpose of providing financial services.
  (e)  Contracts entered into pursuant to this section for financial services
shall not be subject to the provisions of K.S.A. 75-3738 to 75-3740a,
inclusive, and any amendments thereto.
  (f)  The provisions of this section shall not apply to the awarding of
contracts for the providing of professional services as defined by new
section 9.
  Sec. 15.  K.S.A. 1996 Supp. 75-37,102 is hereby amended to read as follows:
75-37,102.   (a) Upon request of the chief administrative officer of a state
agency and subject to the approval of the secretary of administration, the
director of purchases may convene a pro curement negotiating committee to
obtain services or technical products for the state agency.
  (b)  Each procurement negotiating committee shall be composed of: (1) The
director of purchases, or a person designated by the director; (2) the chief
administrative officer of the state agency desiring to make the procurement,
or a person designated by the officer; and   (3) the secretary of
administration, or a person designated by the secretary.
  (c)  The negotiating committee is authorized to negotiate for the procuring
state agency contracts with qualified parties to provide services or
technical products needed by the state agency.
  (d)  Prior to negotiating for the procurement, a notice to bidders first
shall be published in the Kansas register. Upon receipt of bids or proposals,
the committee may negotiate with one or more of the firms submitting bids or
proposals and select from among those sub mitting such bids or proposals the
party to contract with to provide the services or technical products.
  (e)  Contracts entered into pursuant to this section shall not be subject
to the provisions of K.S.A. 75-3738 through 75-3740a and amendments thereto.
Meetings to conduct nego tiations pursuant to this section shall not be
subject to the provisions of K.S.A. 75-4317 through 75-4320a and amendments
thereto. The director of purchases shall submit a report at least once in
each calendar quarter to the legislative coordinating council and the chair
persons of the senate committee on ways and means and the house of
representatives com mittee on appropriations of all contracts entered into
pursuant to this section. In the event that the negotiating committee selects
a bid which is not the lowest bid on a given contract, the directors report
shall contain a rationale explaining why the lowest bidder was not awarded
the contract.
  (f)  Nothing in this section shall be construed as requiring either
negotiations pursuant to this section or bids pursuant to K.S.A. 75-3739 and
amendments thereto for the pro curement of professional services or services
for which, in the judgment of the director of purchases, meaningful
specifications cannot be determined.
  (g)  The provisions of this section shall not apply to the awarding of
contracts for the providing of professional services as defined by new
section 9.
  Sec. 16.  K.S.A. 75-430a is hereby amended to read as follows: 75-430a. (a)
Any state agency in the executive branch of state government authorized by
law to negotiate for contracts for ancillary technical services
relating to construction or remodeling projects, or architectural,
engineering, actuarial, auditing or accounting services, other than as an
expert witness for the purposes of litigation, shall publish a notice of the
commencement of such negotiations in the Kansas register at least 15 days
prior to the commencement of such

                                 April 2, 1997                              717

negotiations. The director of purchases may require a state agency to publish
such a notice for any other contract that will be negotiated.
  This subsection shall not apply to the acquisition of legal services by
any state agency in the executive branch, to emergency purchases or
services reported in accordance with K.S.A. 75-3739 and amendments thereto or
to the acquisition of any services by any state agency in the legislative or
judicial branches of state government.
  This subsection shall not apply to sales of property obtained pursuant to
the federal property and administrative services act.
  (b)  Any state agency authorized to negotiate the sale of any personal
property of the state or a state agency, other than to another state agency,
shall publish a notice of the commencement of such negotiations in the Kansas
register at least 15 days prior to the commencement of such negotiations.
  (c)  Any state agency authorized by law to enter into leases on real
property of the state or a state agency for the production of oil, natural
gas, sand, gravel or any other mineral, or combination thereof, by
competitive bids or other procedures as authorized by law, shall publish a
notice of intention to enter into a lease for such mineral production in the
Kansas register at least 30 days prior to the bid opening or the commencement
of such other procedure as authorized by law.
  (d)  Any state agency authorized by law to lease or sell any real property
of the state or any state agency or any interest in such real property, other
than to another state agency or a political subdivision, shall publish a
notice of intention to lease or sell state real property at least 30 days
prior to commencement of bidding or other procedure authorized by law.
  Sec. 17.  K.S.A. 75-1250 is hereby amended to read as follows: 75-1250. The
legislature hereby declares it to be the policy of this state to announce
publicly all requirements for architectural services, and to negotiate
award contracts for architectural services on the basis of
demonstrated competence and qualification for the type of professional
services required and at fair and reasonable prices.
  Sec. 18.  K.S.A. 1996 Supp. 75-1251 is hereby amended to read as follows:
75-1251. As used in K.S.A. 75-1250 through 75-1267, and amendments thereto,
unless the context oth erwise requires:
  (a)  ``Firm'' means such individual, firm, partnership, corporation,
association, or other legal entity which is: (1) permitted by law to practice
the profession of architecture; and (2) maintaining an office in Kansas
staffed by one or more architects who are licensed by the board of technical
professions; or (3) not maintaining an office in Kansas but which is
qualified to perform special architectural services that are required in
special cases where in the judgment of the secretary of administration it is
necessary to go outside the state to obtain such services.
  (b)  ``Negotiating committee'' means a committee to negotiate as
provided in this act, and consisting of (1) the head of the state agency for
which the proposed project is planned or of the state agency which controls
and supervises the operation and management of the institution for which the
proposed project is planned, if such is the case, or a person des ignated by
the head of the agency, (2) the head of the institution for which the
proposed project is planned, or a person designated by the head of the
institution, and (3) the director of the division of architectural services,
or a person designated by the director, who shall act as chairperson of the
committee. When the proposed project is not planned for an institution, the
state agency head shall designate a second person in lieu of the head of an
institution.
  (c)  ``Architectural services'' means those services described in
subsection (e) of K.S.A. 74-7003 and amendments thereto.
  (d) (c)  ``Project architect'' means a firm employed under this
act for a particular project.
  (e) (d)  ``State building advisory commission'' means the state
building advisory com mission created by K.S.A. 75-3780, and amendments
thereto, or any duly authorized officer or employee of such commission.
  (f) (e)  ``State agency'' includes any state institution.
  Sec. 19.  K.S.A. 1996 Supp. 75-1253 is hereby amended to read as follows:
75-1253. (a) Whenever it becomes necessary in the judgment of the secretary
of administration or in any case when the total cost of a project for
the construction of a building or for major repairs

718                           JOURNAL OF THE HOUSE

or improvements to a building for a state agency is expected to exceed
$500,000, the sec retary of administration shall convene a negotiating
committee. The state building advisory commission shall prepare a list of at
least three and not more than five firms which are, in the opinion of the
state building advisory commission, qualified to serve as project architect
for the project. Such list shall be submitted to the negotiating committee,
without any recommendation of preference or other recommendation. The
secretary of administration shall meet with each negotiating committee and
shall advise the negotiating committee but shall have no vote in the
selection process or other matter upon which the committee may vote
notify the director of purchases that bids should be solicited for the
services of a project architect for such project.
  (b)  The secretary of administration may combine two or more separate
projects for the construction of buildings or for major repairs or
improvements to buildings for state agen cies, for the purpose of procuring
architectural services for all such projects from a single firm. In each
case, the combined projects shall be construed to be a single project for all
purposes under the provisions of K.S.A. 75-1250 to 75-1267, inclusive, and
amendments thereto.
  (c) (1)  This section shall not apply to any repetitive project with a
standard plan that was originally designed by the secretary of administration
or an agency architect pursuant to paragraphs (2) and (3) of subsection (a)
of K.S.A. 75-1254, and amendments thereto. In such a case, the secretary of
administration or the agency architect may provide architectural services for
the repetitive project. The repetitive design exception authorized by this
sub section shall not apply if the in-house architectural design section of
the division of archi tectural services has a staff of greater than one chief
architect and five designers.
  (2)  ``Repetitive project'' means a project which uses the same standard
design as was used for a project constructed previously, including, but not
limited to, sub-area shops and salt domes of the department of transportation
and showers and toilet buildings of the department of wildlife and parks. The
plans for the project may be modified as required for current codes,
operational needs or cost control. The total floor area of the project may be
increased by an area of not more than 25% of the floor area of the originally
constructed project, except that not more than 25% of the linear feet of the
exterior and interior walls may be moved for such increase. A project shall
not be considered to be repetitive if it has been over four years between the
substantial completion of the last project using the design plans and the
appropriation of funds for the proposed project.
  Sec. 20.  K.S.A. 75-1254 is hereby amended to read as follows: 75-1254. (a)
Whenever a negotiating committee is not convened in accordance with K.S.A.
75-1253 and amend ments thereto contract for architectural services is
not proposed for a proposed any project for the construction
of a building or for major repairs or improvements to a building for a state
agency, the secretary of administration shall:
  (1)  Conduct discussions with at least three firms regarding the proposed
project, de termine the architectural services desired for such project, and
negotiate a contract with one of such firms as project architect for the
desired architectural services for all phases of the project which are
authorized by appropriations therefor at a rate of compensation not in excess
of those specified in K.S.A. 75-1263 and amendments thereto;
  (2)  undertake to provide all or part of the architectural services for
such project, in cluding the construction administration services as
described in K.S.A. 75-1260 and amend ments thereto; or
  (3)  designate a qualified employee of the state agency or institution
for which the project is being constructed, or of the state agency which
controls and supervises the operation and management of such institution, to
provide all or part of such services for the project; for the purposes of
providing such architectural services, such employee shall be known as the
agency architect for the project.
  (b)  The employee of such agency designated as the agency architect for the
project shall be a licensed architect under the provisions of K.S.A. 74-7001
to 74-7035, inclusive, and amendments thereto and shall be found by the
secretary of administration to be qualified to perform all of the
architectural services for the particular project, including the construc
tion administration services as described in K.S.A. 75-1260 and amendments
thereto.

                                 April 2, 1997                              719

  (c)  The secretary of administration or the agency architect for the
project, as the case may be, shall provide the preliminary design services,
construction contract documents, bidding services and construction
administration services as described in K.S.A. 75-1260 and amendments thereto
for each phase of the project for which no firm is employed as project
architect.
  Sec. 21.  K.S.A. 75-1255 is hereby amended to read as follows: 75-1255. A
written de scription of the scope or program of the project shall be prepared
by the head of the state agency for which the project is proposed and
submitted to the negotiating committee. The negotiating committee may approve
the description as submitted or may revise and amend or reject all or any
part of such description. The description in the form approved by the
negotiating committee shall be used in the negotiations between the committee
and quali fied firms. Such description shall be the basis for the project
development and the project description shall not be altered therefrom
without the prior approval of the negotiating committee.
  Sec. 22.  K.S.A. 1996 Supp. 75-1258 is hereby amended to read as follows:
75-1258. (a) Each contract for architectural services negotiated under
K.S.A. 75-1254 or 75-1257, and amendments thereto awarded, shall be
entered into between the secretary of administration and the firm selected as
the project architect. Each such contract shall require the project architect
to submit evidence which is satisfactory to the secretary of administration
that the firm has general professional liability insurance or specific
professional liability insurance which is adequate for the project.
  (b)  In addition to the requirements in subsection (a), each such contract
for architectural services shall specify the responsibilities undertaken by
the project architect and that the project architect shall be responsible for
all of such architect's negligent acts, errors or omissions in the
performance of such contract.
  Sec. 23.  K.S.A. 75-1265 is hereby amended to read as follows: 75-1265.
Whenever the negotiating committee and the secretary of administration,
with the advice of the state building advisory commission, agree with regard
to a specific project that the best interests of the state would be served,
the negotiating committee may enter into a contract with any qualified
company or person for construction management services for such project
shall be awarded in conformance with guidelines established pursuant to
rules and regulations adopted by the board of directors of the Kansas
development finance authority and as pro vided in K.S.A. 74-8904 and new
section 9, and amendments thereto. Such services may include: Detail cost
estimating, critical path method scheduling and monitoring, drafting contract
documents for necessary phasing and grouping, drafting contracts and change
or ders, full-time inspection and checking and approving shop drawings, color
schedules, and materials. The fee for services under this section shall be
negotiated by the negotiating committee but shall not exceed one percent
(1%) of the estimated cost of the project, and such fees shall be in addition
to fees authorized under K.S.A. 75-1263, and amendments thereto.
  Sec. 24.  K.S.A. 1996 Supp. 40-3410 is hereby amended to read as follows:
40-3410. When the insurer of a health care provider or inactive health care
provider covered by the fund has agreed to settle its liability on a claim
against its insured or when the self-insurer has agreed to settle liability
on a claim and the claimant's demand is in an amount in excess of such
settlement, or where a claim is against an inactive health care provider
covered by the fund who does not have liability insurance in effect which is
applicable to the claim, or where it would otherwise be in the best interest
of the fund, the claimant and the board of governors may negotiate on an
amount to be paid from the fund. The board of governors may employ
request that independent counsel be employed to represent the
interest of the fund in any such negotiations. All contracts for the
providing of such services shall be awarded in conformance with guidelines
established pursuant to rules and regulations adopted by the board of
directors of the Kansas development finance authority and as pro vided in
K.S.A. 74-8904 and new section 9, and amendments thereto.  In the event
the claimant and the board of governors agree upon an amount the following
procedure shall be followed:
  (a)  A petition shall be filed by the claimant with the court in which the
action is pending against the health care provider or the inactive health
care provider, or if none is pending,

720                           JOURNAL OF THE HOUSE

in a court of appropriate jurisdiction, for approval of the agreement between
the claimant and the board of governors.
  (b)  The court shall set such petition for hearing as soon as the court's
calendar permits, and notice of the time, date and place of hearing shall be
given to the claimant, the health care provider or inactive health care
provider, and to the board of governors.
  (c)  At such hearing the court shall approve the proposed settlement if the
court finds it to be valid, just and equitable.
  (d)  In the event the settlement is not approved, the procedure set forth
in K.S.A. 403411 and amendments thereto shall be followed.
  Sec. 25.  K.S.A. 1996 Supp. 40-3411 is hereby amended to read as follows:
40-3411. (a) In any claim in which the insurer of a health care provider or
inactive health care provider covered by the fund has agreed to settle its
liability on a claim against its insured or when the self-insurer has agreed
to settle liability on a claim and the claimant's demand is in an amount in
excess of such settlement, to which the board of governors does not agree, or
where the claim is against an inactive health care provider covered by the
fund who does not have liability insurance in effect which is applicable to
the claim and the claimant and board of governors cannot agree upon a
settlement, an action must be commenced by the claimant against the health
care provider or inactive health care provider in a court of appropriate
jurisdiction for such damages as are reasonable in the premises. If an action
is already pending against the health care provider or inactive health care
provider, the pending action shall be conducted in all respects as if the
insurer or self-insurer had not agreed to settle.
  (b)  Any such action against a health care provider covered by the fund or
inactive health care provider covered by the fund who has liability insurance
in effect which is applicable to the claim shall be defended by the insurer
or self-insurer in all respects as if the insurer or self-insurer had not
agreed to settle its liability. Notwithstanding any other provision of law,
the insurer or self-insurer shall be reimbursed from the fund for the costs
of such defense incurred after the settlement agreement was reached,
including a reasonable attor ney's fee not to exceed the maximum hourly rate
established by the board of governors. The board of governors is
authorized to employ may request that independent counsel be em
ployed in any such action against a health care provider or an inactive
health care provider covered by the fund. All contracts for the providing
of such services shall be awarded in conformance with guidelines established
pursuant to rules and regulations adopted by the board of directors of the
Kansas development finance authority and as provided in K.S.A. 74-8904 and
new section 9, and amendments thereto. If the primary carrier or
self-insurer determines that the policy limits or the self-insured amount of
basic coverage should be tendered to the fund in order to relieve itself of
further costs of defense, it may do so in the manner specified by the board
of governors. In the event of such a tender, the fund shall become
responsible for the conduct of the defense. In the event of such a tender,
competitive bids shall not be required and the board of governors may
directly employ the attorney retained by the primary carrier or
self-insurer or appoint other counsel to represent such health care provider.
In any event, the board of governors shall pay attorneys' fees at a rate not
to exceed the maximum hourly rate established by the board of governors.
Under such circumstances, the fund shall have no liability for attorneys'
fees to any attorney not so appointed.
  (c)  In any such action the health care provider or the inactive health
care provider against whom claim is made shall be obligated to attend
hearings and trials, as necessary, and to give evidence.
  (d)  The costs of the action shall be assessed against the fund if the
recovery is in excess of the amount offered by the board of governors to
settle the case and against the claimant if the recovery is less than such
amount.
  Sec. 26.  K.S.A. 1996 Supp. 44-566a is hereby amended to read as follows:
44-566a. (a) There is hereby created in the state treasury the workers
compensation fund. The commis sioner of insurance shall be responsible for
administering the workers compensation fund, and all payments from the
workers compensation fund shall be upon warrants of the director of accounts
and reports issued pursuant to vouchers approved by the commissioner of in
surance or a person or persons designated by the commissioner. The
commissioner of in

                                 April 2, 1997                              721

surance annually shall report to the governor and the legislature the
receipts and disburse ments from the workers compensation fund during the
preceding fiscal year.
  (b) (1)  On June 1 of each year, the commissioner of insurance shall impose
an assess ment against all insurance carriers, self-insurers and group-funded
workers compensation pools insuring the payment of compensation under the
workers compensation act, and the same shall be due and payable to the
commissioner on the following July 1, the proceeds of which shall be credited
to the workers compensation fund. The total amount of each such assessment
shall be equal to an amount sufficient, in the opinion of the commissioner of
insurance, to pay all amounts, including attorney fees and costs, which may
be required to be paid from such fund during the current fiscal year, less
the amount of the estimated unencumbered balance in the workers compensation
fund as of the June 30 immediately preceding the date the assessment is due
and payable under this section. The total amount of each such assessment
shall be apportioned among those upon whom it is imposed, such that each is
assessed an amount that bears the same relation to such total assessment as
the amount of money paid or payable in workers compensation claims by such
insurance carrier, self-insurer or group-funded workers compensation pool in
the immediately preceding cal endar year bears to all such claims paid or
payable during such calendar year. The com missioner of insurance may
establish experience-based rates of assessments under this sub section and
make adjustments in the assessments imposed under this subsection based on
the success of accident prevention programs under K.S.A. 44-5,104 and
amendments thereto and other employer safety programs.
  (2)  The commissioner of insurance shall remit all moneys received by or
for such com missioner under this subsection to the state treasurer. Upon
receipt of any such remittance the state treasurer shall deposit the entire
amount thereof in the state treasury to the credit of the workers
compensation fund.
  (c) (1)  Whenever the workers compensation fund may be made liable for the
payment of any amounts in proceedings under the workers compensation act, the
commissioner of insurance, in the capacity of administrator of such fund,
shall be impleaded in such pro ceedings and shall represent and defend the
workers compensation fund. The commissioner of insurance shall be deemed
impleaded in any such proceedings whenever written notice of the proceedings
setting forth the nature of the liability asserted against the workers
compensation fund, is given to the commissioner of insurance. The
commissioner of insur ance may be made a party in this manner by any party to
the proceedings. A copy of the written notice shall be given to the director
and to all other parties to the proceedings.
  (2)  The administrative law judge shall dismiss the workers compensation
fund from any proceeding where the administrative law judge has determined
that there is insufficient evidence to indicate involvement by the workers
compensation fund.
  (3)  In any case in which the workers compensation fund has been impleaded,
if the liability of the fund has not been established within five years of
the date of the employee filing a written notice of claim, the commissioner
of insurance may cause to be filed with an administrative law judge a motion
to dismiss the fund from the case. The administrative law judge shall notify
counsel of record not less than 10 days prior to issuing any order dismissing
the fund from a case. The administrative law judge shall dismiss the fund
from any such case absent a showing by one of the parties that the case
should be left open due to medical necessity or other just cause.
  (d)  The commissioner of insurance, in the capacity of administrator of the
workers compensation fund, may make settlements of any amounts which may be
payable from the workers compensation fund with regard to any claim under the
workers compensation act, subject to the approval of the director.
  (e)  The workers compensation fund shall be liable for:
  (1)  Payment of awards to handicapped employees in accordance with the
provisions of K.S.A. 44-569 and amendments thereto for claims arising prior
to July 1, 1994;
  (2)  payment of workers compensation benefits to an employee who is unable
to receive such benefits from such employee's employer under the conditions
prescribed by K.S.A. 44-532a and amendments thereto;
  (3)  reimbursement of an employer or insurance carrier pursuant to the
provisions of K.S.A. 44-534a and amendments thereto, subsection (d) of K.S.A.
44-556 and amendments

722                           JOURNAL OF THE HOUSE

thereto, subsection (c) of K.S.A. 44-569 and amendments thereto and K.S.A.
44-569a and amendments thereto;
  (4)  payment of the actual expenses of the commissioner of insurance which
are incurred for administering the workers compensation fund, subject to the
provisions of appropriations acts; and
  (5)  any other payments or disbursements provided by law.
  (f)  If it is determined that the workers compensation fund is not liable
as described in subsection (e), attorney fees incurred by the workers
compensation fund may be assessed against the party who has impleaded the
workers compensation fund other than impleadings pursuant to K.S.A. 44-532a
and amendments thereto.
  (g)  The commissioner of insurance shall provide for the implementation of
the workers compensation fund as provided in this section and shall be
responsible for ensuring the fund's adequacy to meet and pay claims awarded
against it.
  (h)  All contracts to provide any legal services for the commissioner of
insurance in the administration of the workers compensation fund shall be
submitted to competitive bid and the contract shall be awarded in conformance
with guidelines established pursuant to rules and regulations adopted by the
board of directors of the Kansas development finance au thority and as
provided in K.S.A. 74-8904 and new section 9, and amendments thereto.
  Sec. 27.  K.S.A. 59-2006 is hereby amended to read as follows: 59-2006. (a)
A person's spouse and the parents of a person who is a minor shall be bound
by law to support the person if the person is committed to, admitted to,
transferred to or received as a patient at a state institution. Payment for
the maintenance, care and treatment of any patient in a state institution
irrespective of the manner of such patient's admission shall be paid by the
patient, by the conservator of such patient's estate or by any person bound
by law to support such patient. The secretary of social and rehabilitation
services may recover the basic maximum charge established as provided for in
subsection (a) of K.S.A. 59-2006b and amendments thereto, or the actual per
patient costs established as provided in subsection (b) of K.S.A. 59-2006b
and amendments thereto, as compensation for the maintenance, care and treat
ment of a patient from such patient when no legal disability exists, or from
the estate of such patient or from any person bound by law to support such
patient.
  (b)  The secretary of social and rehabilitation services shall periodically
and not less than once during each fiscal year make written demand upon the
patient or person liable for the amount claimed by the secretary to have
accrued since the last demand was made, and no action shall be commenced by
the secretary against such patient or such patient's responsible relatives
for the recovery thereof unless such action is commenced within three years
after the date of such written demand. When any part of the amount claimed to
be due has been paid or any acknowledgment of an existing liability, debt or
claim, or any promise to pay the same has been made by the obligor, an action
may be brought in such case within three years after such payment,
acknowledgment or promise, but such acknowledgment or prom ise must be in
writing signed by the party to be charged thereby. If there are two or more
joint debtors, no one of whom is entitled to act as the agent of the others,
no such joint debtor shall lose the benefit of the statute of limitations so
as to be chargeable by reason of any acknowledgment, promise or payment made
by any other or others of them, unless done with the knowledge and consent
of, or ratified by, the joint debtor sought to be charged. The secretary may
accept voluntary payments from patients or relatives or from any source, even
though the payments are in excess of required amounts and shall deposit the
same as provided by law.
  (c)  The secretary of social and rehabilitation services shall have the
power to compro mise and settle any claim due or claimed to be due from such
patient or such patient's relatives who are liable for the patient's care,
maintenance and treatment and upon payment of a valuable consideration by the
patient or the persons bound by law to support such patient, may discharge
and release the patient or relative of any or all past liability herein.
Whenever the secretary shall negotiate a compromise agreement to settle any
claim due or claimed to be due from a patient or such patient's relatives
responsible under this act to support the patient, no action shall thereafter
be brought or claim made for any amounts due for the care, maintenance and
treatment of such patient incurred prior to the effective date of the
agreement entered into, except for the amounts provided for in the agreement

                                 April 2, 1997                              723

if the provisions of such compromise agreement are faithfully performed. In
the event the terms and conditions of such compromise agreement are not
complied with, such failure to comply shall serve to revive and reinstate the
original amount of the claim due before negotiation of such compromise
agreement, less amounts paid on the claim.
  (d)  The secretary of social and rehabilitation services may request
that a contract be entered into with an attorney admitted to
practice in this state or with any debt collection agency doing business
within or without this state to assist in the collection of amounts claimed
to be due under the provisions of this section. The fee for services of such
attorney or debt collection agency shall be based on the amount of moneys
actually collected. No fee shall be in excess of 50% of the total amount of
moneys actually collected. All funds collected less the fee for services as
provided in the contract shall be remitted to the secretary of social and
rehabilitation services within 45 days from the date of collection.
  Contracts entered pursuant to this section, except as otherwise provided
with regards to a contract with an attorney, may be negotiated by the
secretary of social and rehabilitation services and shall not be subject to
the competitive bid requirements of K.S.A. 75-3739 through 75-3741 and
amendments thereto. Subject to the provisions limiting the fee for
services, each contract with an attorney under this section shall be entered
into pursuant to competitive bids and the contract shall be awarded in
conformance with guidelines estab lished pursuant to rules and regulations
adopted by the board of directors of the Kansas development finance authority
and as provided in K.S.A. 74-8904 and new section 9, and amendments
thereto.
  (e)  Before entering into a contract with a debt collection agency under
subsection (d), the secretary of social and rehabilitation services shall
require a bond from the debt collec tion agency in an amount not in excess of
$100,000 guaranteeing compliance with the terms of the contract.
  (f)  A debt collection agency entering into a contract with the secretary
of social and rehabilitation services for the collection of amounts claimed
to be due under this section shall agree that it is receiving income from
sources within the state or doing business in the state for purposes of the
Kansas income tax act.
  (g)  As used in this section, ``state institution'' has the meaning
provided by K.S.A. 592006b and amendments thereto.
  (h)  When a minor becomes a patient of a state institution, an assignment
of all past, present and future support rights of the minor which are
possessed by either parent or any other person entitled to receive support
payments for the minor is conveyed by operation of law to the secretary of
social and rehabilitation services. The assignment of support rights shall be
effective upon the minor's admission as a patient of any state institution,
regardless of the manner of admission, without the requirement that any
written assignment or similar document be signed by the parent or other
person entitled to receive support payments for the minor. When a minor
becomes a patient of a state institution, the parent or other person entitled
to receive support payments for the minor is also deemed to have appointed
the secretary of social and rehabilitation services or the secretary's
designee, as attorney in fact to perform the specific act of negotiating and
endorsing all drafts, checks, money orders or other negotiable instruments
representing support payments on behalf of the minor. This limited power of
attorney shall remain in effect until the assignment of support rights has
been terminated in full. For any minor who is a patient of a state
institution on the effective date of this act and whose past, present and
future support rights are not assigned to the secretary of social and
rehabilitation services, the assignment of support rights and limited power
of attorney shall be effective on the effective date of this act if notice of
the assignment is sent to the person otherwise entitled to receive support
payments for the minor.
  The assignment of support rights provided in this section shall remain in
full force and effect until the minor is no longer a patient of a state
institution. When the minor is no longer a patient of a state institution,
the assignment shall remain in effect as to unpaid support obligations due
and owing as of the last day of the month in which the minor ceases to be a
patient, until the claim of the secretary of social and rehabilitation
services for the maintenance, care and treatment of the minor is satisfied.
Nothing in this section shall affect or limit the rights of the secretary of
social and rehabilitation services under any assignment pursuant to K.S.A.
39-709 and amendments thereto.

724                           JOURNAL OF THE HOUSE

  Sec. 28.  K.S.A. 66-1513 is hereby amended to read as follows: 66-1513. (a)
In accor dance with the provisions of subsection (b), the state corporation
commission is hereby authorized to contract for professional services,
including but not limited to the services of engineers, accountants,
attorneys and economists, to assist in investigations and appraisals under
K.S.A. 66-1502, and amendments thereto, which assistance may include
preparation and presentation of expert testimony, when the expenses of such
professional services are required to be assessed under that statute against
the public utilities involved.
  (b)  Such contracts shall be negotiated by a negotiating committee
composed of the following persons: The general counsel of the state
corporation commission or the designee of the general counsel; the director
of the budget or the designee of the director; the director of accounts and
reports or the designee of the director; and the director of the appropriate
division of the state corporation commission, as determined and designated by
the chair person of the state corporation commission, or the designee of the
director. When a contract authorized under subsection (a) is proposed to be
entered into, the general counsel of the state corporation commission or the
designee of the general counsel shall convene the negotiating committee. The
negotiating committee shall consider all proposals by persons applying to
perform such contract and shall award the contract. All contracts for
the pro viding of professional services, as defined by section 9, shall be
submitted to competitive bid and the contract shall be awarded in conformance
with guidelines established pursuant to rules and regulations adopted by the
board of directors of the Kansas development finance authority and as
provided in K.S.A. 74-8904 and new section 9, and amendments thereto.
  (c)  Except as otherwise provided in subsection (b), such contracts
shall not be subject to the provisions of K.S.A. 75-3739, and
amendments thereto, or to the provisions of the acts contained in
article 58 of chapter 75 of the Kansas Statutes Annotated.
  (d)  As used in this section, ``person'' means an individual, firm,
partnership, corporation, association or other legal entity.
  Sec. 29.  K.S.A. 75-5310a is hereby amended to read as follows: 75-5310a.
The secretary of social and rehabilitation services is hereby authorized to
contract for the services of persons to assist in the preparation of expert
testimony for litigation and to act as expert witnesses in litigation. Any
such contracts, other than contracts for professional services as defined
by section 9, shall be exempt from the competitive bid requirements of
K.S.A. 753739, and amendments thereto. All contracts for the
providing of professional services, as defined by section 9, shall be
submitted to competitive bids and the contract shall be awarded in
conformance with guidelines established pursuant to rules and regulations
adopted by the board of directors of the Kansas development finance authority
and as provided in K.S.A. 74-8904 and new section 9, and amendments
thereto.
  Sec. 30.  K.S.A. 1996 Supp. 76-745 is hereby amended to read as follows:
76-745. (a) As used in this section ``negotiating committee'' means a
committee to negotiate as provided in this act, and consisting of the
executive officer of the state board of regents or a person designated by the
executive officer, two representatives of the state educational institutions
as designated by the state board of regents and the director of purchases or
a person des ignated by the director of purchases, except that for collection
services for hospital revenue collection for the university of Kansas medical
center, the negotiating committee shall con sist of the chairperson of the
state board of regents or a person designated by the chairper son, the
attorney general or a person designated by the attorney general, and the
chancellor of the university of Kansas or a person designated by the
chancellor.
  (b)  The state board of regents shall convene a negotiating committee to
obtain collection services. The negotiating committee is authorized to
negotiate contracts with one or more qualified parties to provide collection
services for the state educational institutions and such contracts may be
entered on a multi-year basis, except in the case of collection services for
hospital revenue collection for the university of Kansas medical center, each
contract for such collection services shall be negotiated on the basis of
criteria prescribed by the uni versity of Kansas medical center and shall be
entered into by the university of Kansas medical center and one or more
qualified parties.
  (c)  Prior to negotiating for collection services, the committee shall
advertise for pro posals, negotiate with firms submitting proposals and
select among those submitting such proposals the party or parties to contract
with for the purposes of collection services.

                                 April 2, 1997                              725

  (d)  Except as otherwise provided in subsection (e), contracts
entered into pursuant to this section shall not be subject to the provisions
of K.S.A. 75-3738 to 75-3740a, inclusive, and amendments thereto.
  (e)  All contracts for the providing of professional services, as
defined by section 9, shall be submitted to competitive bid and the contract
awarded in conformance with guidelines established pursuant to rules and
regulations adopted by the board of directors of the Kansas development
finance authority and as provided in K.S.A. 74-8904 and new section 9, and
amendments thereto.
  Sec. 31.  K.S.A. 75-5801 is hereby amended to read as follows: 75-5801. The
legislature hereby declares it to be the policy of this state to publicly
announce all requirements for engineering services, and to negotiate
award contracts for engineering services on the basis of
demonstrated competence and qualification for the type of professional
services required and at fair and reasonable fees.
  Sec. 32.  K.S.A. 1996 Supp. 75-5802 is hereby amended to read as follows:
75-5802. As used in this act unless the context specifically requires
otherwise:
  (a)  ``Firm'' means any individual, firm, partnership, corporation,
association, or other legal entity permitted by law to practice the
profession of engineering and provide engi neering services or practice the
profession of land surveying and provide land surveying services.
  (b)  ``Engineering services'' means those services described in subsection
(i) of K.S.A. 74-7003 and amendments thereto.
  (c)  ``Land surveying'' means those services described in subsection (j) of
K.S.A. 74-7003, and amendments thereto.
  (d)  ``Agency head'' means the chief administrative officer of a state
agency, as that term is defined in subsection (3) of K.S.A. 75-3701 and
amendments thereto, but shall not include the chief administrative officer of
any state institution.
  (e)  ``Negotiating committee'' means a committee designated to negotiate
as provided in this act, and consisting of (1) the agency head of the state
agency for which the proposed project is planned, or a person designated by
such agency head, (2) the secretary of admin istration, or a person
designated by said secretary, and (3) the chief administrative officer of the
state institution for which the proposed project is planned, or when the
proposed project is not planned for a state institution, the agency head
shall designate a second person in lieu of the chief administrative officer
of a state institution.
  (f)  ``Project'' means any capital improvement project or any study,
plan, survey or pro gram activity of a state agency, including development of
new or existing programs and preparation of federal grant applications.
  (g) (f)  ``State building advisory commission'' means the state
building advisory commis sion created by K.S.A. 75-3780 and amendments
thereto, or any duly authorized officer or employee of such commission.
  Sec. 33.  K.S.A. 1996 Supp. 75-5803 is hereby amended to read as follows:
75-5803. (a) In the procurement of engineering or land surveying services,
each agency head which utilizes engineering or land surveying services shall
encourage firms engaged in the lawful practice of their profession to
annually submit a statement of qualifications and performance data to the
agency head and to the state building advisory commission. The agency head
shall thereafter cause to be prepared annually a list of firms qualified,
based upon criteria established and published by such agency head, to provide
such engineering or land sur veying services.
  (b)  Except as otherwise provided in subsection (c), when a project
requiring engineering or land surveying services is proposed for a state
agency, the agency head for such state agency shall evaluate current
statements of qualifications and performance data on file with the agency
head, together with those that may be submitted by other firms regarding the
proposed project. The agency head may establish time frames for the receipt
of qualifications statements and performance data from any firm wishing to be
considered for the proposed project. The agency head shall conduct
discussions with not less than three firms regarding anticipated concepts and
the relative utility of alternative methods of approach for furnishing the
required engineering or land surveying services and then such agency head
shall select from among all such firms, on a rotational basis, the firm to
perform the engineering or

726                           JOURNAL OF THE HOUSE

land surveying services, unless such firm refuses to provide such engineering
or land sur veying services.
  (c) (b)  In any case where a project requiring engineering or land
surveying services is proposed which concerns the construction of any
building or facility or any major repairs or improvements to any building or
facility, including in any case but not limited to any heating, cooling or
power facility, for a state agency and a negotiating committee is not
convened under K.S.A. 75-5804 and amendments thereto, the agency head of
the state agency shall notify the state building advisory commission and
shall request a list of director of purchases that it is the desire of
the agency that contracts be entered into with firms qualified to provide
the engineering or land surveying services for such project. Upon receipt
of any such request, the state building advisory commission shall evaluate
the current state ments of qualifications and performance data on file,
together with those statements that may be submitted by other firms,
regarding the proposed project and other information developed and available
to the state building advisory commission, and shall prepare a list of at
least three and not more than five firms which, in the opinion of the state
building advisory commission, are qualified to furnish the engineering or
land surveying services for the proposed project. Each such list shall be
submitted to the agency head without any recommendation of preference or
other recommendation. The agency head shall conduct discussions with the
firms listed and shall select the firm to perform the engineering or land
surveying services, all in the manner provided in subsection (b). If the
agency head is unable to enter into a contract for the necessary engineering
or land surveying services with any firm so listed, the agency head shall
request the state building advisory commission to prepare and submit another
list of firms qualified to provide such engineering or land surveying
services and shall proceed in accordance with this subsection. The secretary
of administration shall provide to the agency head such information, advice
and assistance as may be requested by the agency head regarding the selection
of a firm to provide engineering or land surveying services for such
projects, including all information and evaluations re garding the listed
firms gathered and developed under K.S.A. 75-3783, and amendments thereto.
  Sec. 34.  K.S.A. 1996 Supp. 75-5804 is hereby amended to read as follows:
75-5804. (a) Whenever it becomes necessary in the judgment of the
agency head of a state agency for which a project is proposed and, in any
case where the total cost of such a proposed project is expected to exceed
$250,000, the agency head shall convene a negotiating committee. Except
as otherwise provided in subsection (b), the agency head shall submit the
list of at least three and not more than five of the most highly qualified
firms to the negotiating committee so convened, without any recommendation of
preference or other recommen dation.
  (b)  Whenever a negotiating committee is convened under this section for a
proposed project requiring engineering or land surveying services which
concerns the construction of any building or facility or any major repairs or
improvements to any building or facility, including but not limited, to any
heating, cooling or power facility, for a state agency, the agency head for
the state agency shall notify the state building advisory commission of the
project and shall request a list of firms qualified to provide notify
the director of purchases that it is the desire of the agency that a contract
be awarded for the purpose of providing the engineering or land surveying
services for the proposed project. Upon receipt of any such request the
state building advisory commission shall evaluate the current statements of
qualifications and performance data on file, together with those statements
that may be submitted by other firms regarding the proposed project and other
information developed and available to the state building advisory
commission. The commission shall prepare a list of at least three and not
more than five firms which, in the opinion of the state building advisory
commission, are qualified to furnish the engineering or land surveying
services for the proposed project. Each such list shall be submitted to the
negotiating committee so convened without any recommendation of preference or
other recommendation.
  Also, on Part C of the motion of Rep. Shallenburger, SB 18 be amended
  Sec. 35.  K.S.A. 1996 Supp. 10-106 is hereby amended to read as follows:
10-106. (a) Municipal bonds shall be sold at public sale as follows: 
The officers having charge of the sale of the bonds shall publish a notice of
the sale one time in a newspaper having general

                                 April 2, 1997                              727

circulation in the county where the bonds are issued and in the Kansas
register. Such notices shall be published not less than six days nor more
than 30 days before the sale and shall contain the following information: (1)
Except as provided by subsection (b), The date, time and place at which
a public auction will be held or at which written sealed bids will be
received and considered for the sale of the bonds for cash at such price as
the municipality may accept; (2) the date of issue, total par value and
denomination of the bonds being sold;   (3) the dates and amounts of
maturities of the bond issues; (4) the dates on which interest on the bonds
shall become due and payable; (5) the place or places where and the approx
imate date on which the bonds being sold will be delivered to the purchaser;
(6) a statement that a good faith deposit in the form of a certified or
cashier's check or surety bond in the amount of 2% of the total par value of
the bonds being sold shall accompany each bid or in the case of public sale
at auction the same shall be furnished by each bidder; (7) a statement
disclosing whether or not the purchaser of the bonds will be required to pay
for the printing thereof and whether or not and to what extent the purchaser
of the bonds will be required to pay the expense of legal services rendered
to the municipality in connection with the issuance of the bonds including
the fees of recognized bond counsel for an opinion as to legality of
issuance; (8) the assessed valuation of the municipality; and (9) the total
bonded indebtedness of the municipality as of the date on which the bonds
being sold are dated including the bonds submitted for bid. The rate of
interest may be omitted in adver tising and the bidders requested to specify
the lowest interest rate or rates on the bonds at which they will pay the
purchase price.
  If All municipal bonds shall be sold at public sale with sealed
bids,. All purchasers shall submit their bids in writing, sealed,
for all or any part of the bonds, and each bid shall be accompanied by a
certified or cashier's check or surety bond for 2% of the total amount of the
bid. In case any purchaser, whose bid is accepted, fails to carry out the
contract, the deposit shall be forfeited to the municipality issuing the
bonds. Sealed bids shall be opened publicly and only at the time and place
specified in the notice. At the time and place specified, the bonds shall be
sold to the highest and best bidder or bidders, and the bonds may be allotted
among the bidders, however, any or all bids may be rejected. No contract for
the sale of the bonds shall be made except on bids submitted as provided in
this section. No bonds shall be delivered to any purchaser until the amount
of the bid is placed in the hands of the officer in charge of the sale. The
provisions of this section relating to the public sale of bonds shall not
apply to bonds secured solely and only by revenues, bonds sold, pursuant to
written agreement, to the government of the United States of America or any
bureau, department, instrumentality or agency thereof, bonds issued
pursuant to K.S.A. 10427 et seq., and amendments thereto,
and all bonds of the same series or which are issued simultaneously with such
bonds and bond sales where the total amount of the issue does not exceed
$100,000. In such cases, the bonds may be sold at public or private sale
as the officers having charge of the sale of such bonds determine. The
practice of providing more than one issue within a twelve-month period for
any one project is prohibited unless the project engineer or architect
certifies that it is necessary to do so for the orderly construction progress
of the project.
  (b)  As an alternative to providing notice of the date, time and place
of public auction or receipt of bids provided by subsection (a)(1), the
officers having charge of a bond sale may establish a time period of not less
than seven nor more than 30 days during which such bonds would be sold.
Notice of such sale period shall be published one time in a newspaper having
general circulation in the county where the bonds are issued and in the
Kansas register and shall be published not less than six days nor more than
30 days before the beginning date of the sale period. The notice shall
contain the information specified in subsection (a) except that in place of
the time and date of sale, the notice shall specify the time period during
which the bonds would be sold and the manner in which persons inter ested in
submitting a bid may register for notice of the bond sale. At least three
business days prior to the time and date of the bond sale, the officers
having charge of the sale shall give notice to all persons having registered
for notice of the bond sale, and bids shall be submitted and received and the
sale made in the manner provided in subsection (a).
  Sec. 36.  K.S.A. 10-116a is hereby amended to read as follows: 10-116a. Any
municipal or quasi-municipal corporation which has issued or may hereafter
issue revenue bonds under

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the laws of the state of Kansas, may issue, without an election, revenue
bonds pursuant to the provisions of this section to refund any revenue bond
issue or issues, or part thereof, any interest on such bonds or both such
bonds and interest. The principal amount of any issue of refunding revenue
bonds shall not exceed the aggregate amount of: (a) The principal amount of
the revenue bonds or interest being refunded; (b) the amount of any interest
which has accrued thereon or interest that will accrue to the date of payment
of the bonds being refunded; (c) the amount of any premium required to be
paid should the bonds be called for redemption and payment; (d) expenses of
the municipal or quasi-municipal cor poration deemed by the governing body to
be necessary for the issuance of the refunding bonds; and (e) expenses
incident to the payment of the bonds being refunded. The refunding revenue
bonds may be sold or exchanged for the bonds being refunded either as a
whole or in installments at any time or times, either at, before, or after
the maturity of the bonds being refunded. All such bonds shall be sold at
public sale upon the basis of competitive bids. Notice of such sale and the
conditions and procedures for the receipt and acceptance of bids, shall be
made in the manner prescribed for the sale of municipal bonds pursuant to
K.S.A. 10-106, and amendments thereto, insofar as the same is applicable.
If the refunding revenue bonds are sold more than six months prior to the
maturity or earliest prior re demption date of the bonds being refunded, the
proceeds derived from the sale, together with any other moneys on hand, shall
be placed in escrow under a trust agreement with a Kansas bank having full
trust powers. The proceeds and moneys shall be invested in direct obligations
of, or obligations the principal of and the interest on which are
unconditionally guaranteed by, the United States of America or municipal
obligations which are secured by direct obligations of the United States of
America, and which shall mature or be subject to redemption by the holders
thereof not later than the respective dates when the proceeds of the
obligations together with the interest accruing thereon and any other moneys
or in vestments held in escrow will be required for the purposes intended.
The trust agreement shall pledge or assign the moneys and investments held in
trust for the payment of the principal of the revenue bonds being refunded
and may pledge or assign the moneys and investments held in trust for the
payment of the interest on the revenue bonds being re funded and any
redemption premium thereon. The trust agreement may pledge or assign any of
the obligations or other moneys or investments, or interest accruing thereon,
held in trust, which are in excess of the amount of the obligations and other
moneys and investments held which is equal to the amount of the principal of
the bonds to be refunded which comes due on the date for which the bonds may
have been called for redemption or irrevocable instructions to call bonds for
redemption have been given and any redemption premium thereon, for the
payment of the principal of and interest on any or all of the refunding
revenue bonds and any redemption premium thereon, and shall contain
provisions for pro tecting and enforcing the rights and remedies of the
holders of the revenue bonds. The refunding revenue bonds issued pursuant to
this section shall not be general obligations of the municipal or
quasi-municipal corporation, except as herein provided, and insofar as the
same may be made applicable the issuance of the refunding revenue bonds, the
security thereof, and the rights, duties and obligations of the municipal or
quasi-municipal corpo ration in respect thereof, shall be governed by the
laws governing such matters with respect to the bonds being refunded and all
other laws generally applicable to revenue bonds issued in this state by the
municipal or quasi-municipal corporation.
  Sec. 37.  K.S.A. 10-427a is hereby amended to read as follows: 10-427a. (a)
Refunding bonds issued under the authority of K.S.A. 10-427, and amendments
thereto, may be sold or exchanged for the bonds being refunded either
as a whole or in installments at any time either at, before or after the
maturity of the bonds being refunded. All such bonds shall be sold at
public sale upon the basis of competitive bids. Notice of such sale and the
conditions and procedures for the receipt and acceptance of bids shall be
made in the manner prescribed for the sale of municipal bonds pursuant to
K.S.A. 10-106, and amendments thereto, insofar as the same is applicable.
Such bonds shall be exempt from statutory limitations of bonded indebtedness
and shall not be included in computing the total bonded indebtedness of the
municipality for the purpose of applying any statute limiting the bonded
indebtedness of the municipality.

                                 April 2, 1997                              729

  (b)  If refunding bonds are sold more than six months prior to the maturity
or earliest prior redemption date of the bonds being refunded, the proceeds
derived from the sale, together with any other moneys on hand, shall be
placed in escrow under a trust agreement with a Kansas bank having full trust
powers. The proceeds and moneys shall be invested in direct obligations of,
or obligations the principal of and the interest on which are uncondi
tionally guaranteed by, the United States of America or municipal obligations
which are secured by direct obligations of the United States of America, and
which shall mature or be subject to redemption by the holders thereof not
later than the respective dates when the proceeds of the obligations together
with the interest accruing thereon and any other moneys or investments held
in escrow will be required for the purposes intended. The trust agreement
shall pledge or assign the moneys and investments held in trust for the
payment of the principal of the bonds being refunded and may pledge or assign
the moneys and investments held in trust for the payment of the interest on
the bonds being refunded and any redemption premium thereon. The trust
agreement may pledge or assign any of the obligations or other moneys or
investments, or interest accruing thereon, held in trust, which are in excess
of the amount of the obligations and other moneys and investments held which
is equal to the amount of the principal of the bonds to be refunded which
comes due on the date for which the bonds may have been called for redemption
or irrevocable instructions to call bonds for redemption have been given and
any redemption premium thereon, for the payment of the principal of and
interest on any or all of the refunding bonds and any redemption premium
thereon, and shall contain provisions for protecting and enforcing the rights
and remedies of the holders of the bonds.
  Sec. 38.  K.S.A. 10-1202 is hereby amended to read as follows: 10-1202. (a)
Any mu nicipality authorized by the laws of the state of Kansas to issue
general obligation bonds for the acquisition, construction, reconstruction,
alteration, repair, improvement, extension or enlargement of any utility is
hereby empowered to issue and sell revenue bonds in payment of the cost of
such utility or improvements, to fix by ordinance or resolution such rates,
fees and charges for the use thereof or services therefrom as may be
reasonable and necessary and to provide for the manner of collecting and
disbursing such revenues subject to the limitations hereinafter contained.
All such bonds shall be sold at public sale upon the basis of competitive
bids. Notice of such sale and the conditions and procedures for the receipt
and acceptance of bids shall be made in the manner prescribed for the sale of
municipal bonds pursuant to K.S.A. 10-106, and amendments thereto, insofar as
the same is applicable. If any city of the first class shall have issued
temporary notes for waterworks improvements contemplating the issuance of
general obligation bonds, said general obligation bonds having been
authorized by the vote of a majority of the qualified electors of such city
voting on the proposition at an election called and held for that purpose,
such city may fund such tem porary notes by the issuance of revenue bonds
under the terms of this act without again submitting any proposition to the
electors of such city. Any city which has issued revenue bonds under the
terms of this act may thereafter issue additional revenue bonds for im
provements, enlargements, extensions or additions to any utility system and
provide that, on such conditions as may be specified by the governing body of
the city, such later bonds shall be on a parity as to the revenues of such
utility and in all other respects with revenue bonds previously issued
against such utility under the terms of this act.
  (b)  Any city of the first class owning and operating a municipal electric
utility, which is located in a county having a population of more than
twenty thousand (20,000) 20,000 and not more than thirty
thousand (30,000) 30,000 and an assessed tangible valuation of more
than one hundred thirty-five million dollars ($135,000,000)
$135,000,000, is hereby author ized to join with any privately owned
electric utility in the construction of an additional electric generating
facility and to issue revenue bonds under the authority of this section and
the act of which this section is amendatory to pay the city's share of the
cost thereof. Such city is hereby authorized to enter into any contracts or
agreements with such private electric utility which are necessary for the
construction of such generating facility and for the purchase by the city of
electric energy produced by such facility. The principal of, and the interest
upon, all revenue bonds issued under the authority of this subsection shall
be paid from available revenues derived from the operation of the city's
municipal electric

730                           JOURNAL OF THE HOUSE

utility and available revenues derived from the operation of such additional
electric gener ating facility.
  Sec. 39.  K.S.A. 10-1211 is hereby amended to read as follows: 10-1211. Any
munici pality governed by the provisions of this act having issued revenue
bonds under this act or any previous authority may, from time to time,
may issue revenue bonds pursuant to the provisions of this act to
refund any previous issue or part thereof of its outstanding revenue bonds.
Such refunding revenue bonds shall be issued and sold in the manner
prescribed by and subject to the provisions of K.S.A. 10-116a, and
amendments thereto. In addition, any such municipality may, from time to
time, issue general obligation bonds, under the pro visions of the general
bond law, to refund any previous issue or part thereof of its outstanding
revenue bonds, including the principal amount thereof and all accrued
outstanding interest thereon, if such revenue bonds are callable in
accordance with their terms or the holders thereof are willing to surrender
them to the municipality. Such general obligation bonds shall not be issued
until a resolution adopted by the governing body of the municipality stating
the purpose for which such bonds are to be issued, the total amount of the
bonds proposed to be issued, and the total cost to the city of the refunding
project, shall be published once each week for two consecutive weeks in the
official newspaper of such municipality. After publication, such bonds may be
issued unless a petition requesting an election on the proposition, signed by
electors equal in number to not less than 5% of the electors of the
municipality who voted for the office of secretary of state at the last
preceding general election of such office, is filed with the clerk of such
municipality within 20 days following the last publication of such
resolution. If such a petition is filed, the governing body of the
municipality shall submit the proposition to the voters at an election called
for such purpose and held within 90 days after the last publication of the
resolution, and no bonds shall be issued unless such proposition shall
receive the approval of a majority of the votes cast thereon. Such election
shall be called and held in the manner provided by the general bond law. No
such general obligation bonds shall be issued unless: (a) The total cost to
the municipality on the general obligation bonds shall amount to less than
the remaining interest cost to the municipality on the outstanding revenue
bonds being refunded; (b) the anticipated revenues from the utility system
involved are expected to be sufficient to retire such general obligation
bonds; and (c) the refunding is necessary to accomplish a compre hensive and
orderly financing plan for the utility system.
  New Sec. 40.  The awarding of all contracts for the providing of
professional services for municipalities involved in the issuance of general
obligation and revenue bonds, includ ing but not limited to, the preparation
of transcripts, the employment of bond counsel and financial services and
bond underwriting shall be awarded in conformance with guidelines established
pursuant to rules and regulations adopted by the board of directors of the
Kansas development finance authority as provided in K.S.A. 74-8904 and new
section 9, and amend ments thereto.
  New Sec. 41.  (a) All bonds, as defined by K.S.A. 74-8902, and amendments
thereto, which are issued by any agency of the state, any body politic and
corporate or any other entity created by any law of the state, shall be sold
at public sale upon the basis of competitive bids, in conformance with
guidelines established pursuant to rules and regulations adopted by the board
of directors of the Kansas development finance authority as provided in
K.S.A. 74-8904, and amendments thereto.
  (b)  The awarding of all contracts for the providing of professional
services for any agency of the state, any body politic and corporate or any
other entity created by any law of the state, involved in the issuance of
general obligation and revenue bonds, including but not limited to, the
preparation of transcripts, the employment of bond counsel and financial
services and bond underwriting shall be awarded in conformance with
guidelines established pursuant to rules and regulations adopted by the board
of directors of the Kansas devel opment finance authority as provided in
K.S.A. 74-8904 and new section 9, and amendments thereto.
  New Sec. 42.  (a) Except as otherwise specifically provided by law, all
contracts for the providing of professional services for all political and
taxing subdivisions of the state shall be awarded upon the basis of
competitive bids. All bids shall be solicited by notice published in a
newspaper of general circulation in the political or taxing subdivision.

                                 April 2, 1997                              731

  (b)  As used in this act, ``professional services'' shall mean and include
all services pro vided under contract to any political or taxing subdivision
of the state by any member of profession, the members of which are licensed
or regulated under the laws of the state of Kansas.
  Sec. 43.  K.S.A. 10-116a, 10-427a, 10-1202, 10-1211, 46-235, 46-242,
46-247, 46-267, 46-285, 59-2006, 66-1513, 75-430a, 75-1250, 75-1254, 75-1255,
75-1256, 75-1257, 75-1258, 75-1265, 75-3738, 75-3784, 75-3799, 75-5310a,
75-5801 and 75-5805 and K.S.A. 1996 Supp. 10-106, 40-3410, 40-3411, 44-566a,
46-233, 74-8904, 75-1251, 75-1253, 75-1258, 75-3739, 75-3740, 75-37,102,
75-5802, 75-5803, 75-5804, 75-5806, 75-5807 and 76-745 are hereby
repealed.'';
  Also on page 5, in line 34, by renumbering section 7 as section 44;
  In the title, in line 12, by striking all after ``ACT''; by striking all of
lines 14 to 17 inclusive, and inserting in lieu thereof: ``relating to
governmental agencies, officers and employees; concerning governmental
ethics, funds and moneys and contracts; amending K.S.A. 10-116a, 10-427a,
10-1202, 10-1211, 46-235, 46-242, 46-247, 46-267, 46-285, 59-2006, 66-1513,
75430a, 75-1250, 75-1254, 75-1255, 75-1265, 75-3738, 75-3784, 75-3799,
75-5310a, 75-5801 and K.S.A. 1996 Supp. 10-106, 40-3410, 40-3411, 44-566a,
46-233, 74-8904, 75-1251, 751253, 75-1258, 75-3739, 75-3740, 75-37,102,
75-5802, 75-5803, 75-5804 and 76-745 and repealing the existing sections; and
also repealing K.S.A. 75-1256, 75-1257, 75-1258 and 755805 and K.S.A. 1996
Supp. 75-5806 and 75-5807.'';
  Also, on motion of Rep. Bradley SB 18 be amended, as previously
amended in Committee of the Whole, in section 6 (b)(2)(E), following the
words ``board of regents'' by inserting ``, the Washburn University board of
regents''; and the bill be passed as amended.
  On motion of Rep. Tomlinson to adopt the committee report to SB 116,
Rep. McKechnie requested a ruling on the committee report being germane to
the bill. Rep. McKechnie subsequently withdrew the request. The question
reverted back to the motion of Rep. Tom linson to adopt the committee report.
Roll call was demanded.
  On roll call, the vote was: Yeas 103; Nays 16; Present but not voting 0;
Absent or not voting 6.
  Yeas: Adkins, Alldritt, Allen, Ballard, Ballou, Beggs, Benlon, Boston,
Bradley, Burroughs, Campbell, Carmody, Compton, Correll, Crow, Dahl, Dillon,
Dreher, Edmonds, Empson, Faber, Feuerborn, Findley, Flaharty, Flora, Flower,
Franklin, Garner, Geringer, Gilbert, Gilmore, Glasscock, Grant, Gregory,
Haley, Hayzlett, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins,
Johnson, Johnston, Kejr, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel,
Kuether, Lane, Larkin, J. Long, P. Long, Mayans, McClure, McCreary, McKin
ney, Minor, Mollenkamp, Morrison, Myers, Nichols, Osborne, Packer, Palmer,
Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powers, Presta, Ray,
Reardon, Reinhardt, Ruff, Saw yer, Schwartz, Shallenburger, Sharp, Showalter,
Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch,
Toelkes, Tomlinson, Vickrey, Vining, Weiland, Wells, Welshimer, Wempe, Wilk,
Wilson.
  Nays: Aurand, Farmer, Henderson, Jennison, Landwehr, Lloyd, Mason, Mays, Mc
Kechnie, Neufeld, O'Connor, O'Neal, Powell, Shore, Wagle, Weber.
  Present but not voting: None.
  Absent or not voting: Cox, Dean, Freeborn, Helgerson, Samuelson, Toplikar.
  The motion prevailed and the committee report to SB 116 be adopted.
Also, on motion of Rep. Tomlinson be amended on page 4, in line 28, after the
period by inserting ``The provisions of this subsection shall not apply to
the action of any such officer, employee, candidate or state officer elect
except when a particular course of official action is to be followed as a
condition therefor.''; in line 37, after the period, by inserting ``The
provisions of this subsection shall not apply to the action of any such
person except when a particular course of official action is to be followed
as a condition therefor.'';
  On page 5, in line 3, after the period, by inserting ``The provisions of
this subsection shall not apply to the action of any such person except when
a particular course of official action is to be followed as a condition
therefor.''; in line 14, by striking ``from'' and inserting ``by''; in line
17, preceding the period, by inserting ``if a particular course of official
action is to

732                           JOURNAL OF THE HOUSE

be followed as a condition therefor''; in line 24, after ``engagement'' by
inserting ``if a par ticular course of official action is to be followed as a
condition therefor,'';
  Also, on motion of Rep. Campbell SB 116 be amended on page 4, in line
8, after ``(3)'' by inserting ``except as otherwise provided by K.S.A.
25-4153a, and amendments thereto'';
  On page 5, in line 28, by striking ``Kansas''; in line 29, by striking ``on
governmental standards and conduct'';
  On page 6, by striking all of lines 32 to 34, inclusive and by inserting:
  ``Sec. 6.  K.S.A. 25-4119a is hereby amended to read as follows: 25-4119a.
(a) There is hereby created the Kansas commission on governmental standards
and conduct.
  (b)  On July 1, 1997, the Kansas commission on governmental standards
and conduct is hereby redesignated as the governmental ethics commission. On
and after July 1, 1997, whenever the Kansas commission on governmental
standards and conduct, or words of like effect, is referred to or designated
by a statute, contract or other document, such reference or designation shall
be deemed to apply to the governmental ethics commission. Nothing in this act
shall be construed as abolishing and reestablishing the commission. The
commission shall consist of nine members of whom two shall be appointed by
the governor, one by the president of the senate, one by the speaker of the
house of representatives, one by the minority leader of the house of
representatives, one by the minority leader of the senate, one by the chief
justice of the supreme court, one by the attorney general and one by the
secretary of state. The terms of such members shall be as follows:  The
member appointed by the governor serving on the effective date of this act
and the members appointed by the speaker of the house of representatives and
the president of the senate shall serve until January 31, 1991; the
additional member appointed by the governor and the members appointed by the
attorney general and the secretary of state shall serve until January 31,
1992; the members appointed by the minority leader of the house of
representatives and by the minority leader of the senate shall serve until
January 31, 1993; and the member appointed by the chief justice of the
supreme court shall serve until January 31, 1994. Nothing in this act
shall be construed as affecting the terms of members serving on July 1,
1997. Not more than five members of the commission shall be members of the
same political party and the two members appointed by the governor shall not
be members of the same political party.
  (b) (c)  The terms of all subsequently appointed members shall
be two years commencing on February 1 of the appropriate years. Vacancies
occurring on the commission shall be filled for the unexpired term by the
same appointing officer as made the original appoint ment. Members shall
serve until their successors are appointed and qualified. The governor shall
designate one of the members appointed by the governor to be the chairperson
of the commission. A majority vote of five members of the commission shall be
required for any action of the commission. The commission may adopt rules to
govern its proceedings and may provide for such officers other than the
chairperson as it may determine. The com mission shall meet at least once
each quarter, and also shall meet on call of its chairperson or any four
members of the commission. Members of the commission attending meetings of
such commission, or attending a subcommittee meeting thereof authorized by
such com mission, shall be paid compensation, subsistence allowances, mileage
and other expenses as provided in subsections (a) to (d), inclusive, of
K.S.A. 75-3223, and amendments thereto. The commission shall appoint an
executive director who shall be in the unclassified service and receive
compensation fixed by the commission, in accordance with appropriation acts
of the legislature, subject to approval by the governor. The commission may
employ such other staff and attorneys as it determines, within amounts
appropriated to the commission, all of whom shall be in the unclassified
service and shall receive compensation fixed by the commission and not
subject to approval by the governor.
  (c) (d)  The commission may adopt rules and regulations for the
administration of the campaign finance act. Subject to K.S.A. 25-4178, and
amendments thereto, rules and reg ulations adopted by the commission
created prior to this act shall continue in force and effect and shall be
deemed to be the rules and regulations of the commission created by this
section of this enactment, until revised, amended, repealed or nullified
pursuant to law. All rules and regulations of the commission shall be subject
to the provisions of article 4 of

                                 April 2, 1997                              733

chapter 77 of Kansas Statutes Annotated. The commission shall continue to
administer all of the acts administered by the commission to which it is
successor.
  (d) (e)  The commission may provide copies of opinions,
informational materials com piled and published by the commission and public
records filed in the office of the com mission to persons requesting the same
and may adopt rules and regulations fixing reason able fees therefor. All
fees collected by the commission under the provisions of this subsection
shall be paid to the state treasurer who shall deposit the same in the state
treasury to the credit of the Kansas governmental ethics
commission on governmental standards and conduct fee fund.
  (e) (f)  The commission shall submit an annual report and
recommendations in relation to all acts administered by the commission to the
governor and to the legislative coordinating council on or before December 1
of each year. The legislative coordinating council shall transmit such report
and recommendations to the legislature.
  (f) (g)  Whenever the public disclosure commission
Kansas commission on governmental standards and conduct, or words of
like effect, is referred to or designated by a statute, contract or other
document, such reference or designation shall be deemed to apply to the
Kansas commission on governmental standards and conduct created by
this section ethics commission.
  Sec. 7.  K.S.A. 25-4119e is hereby amended to read as follows: 25-4119e.
(a) There is hereby established in the state treasury the Kansas
governmental ethics commission on governmental standards and
conduct fee fund. All moneys credited to such fund shall be used for the
operations of the commission in the performance of powers, duties and func
tions prescribed by law. All expenditures from such fund shall be made in
accordance with the provisions of appropriation acts and upon warrants of the
director of accounts and reports issued pursuant to vouchers approved by the
chairperson of the commission or the chairperson's designee.
  (b)  The director of accounts and reports is hereby directed to transfer
all moneys in the Kansas commission on governmental standards and conduct fee
fund to the governmental ethics commission fee fund established pursuant to
subsection (a). All liabilities of the Kansas commission on governmental
standards and conduct fee fund existing prior to July 1, 1997, are hereby
imposed on the governmental ethics commission fee fund established pursuant
to subsection (a). The Kansas commission on governmental standards and
conduct fee fund is hereby abolished.
  Sec. 8.  K.S.A. 1996 Supp. 25-4119f is hereby amended to read as follows:
25-4119f. (a) In addition to any other fee required by law, every person
becoming a candidate for the following offices shall pay a fee at the time of
filing for such office in the amount prescribed by this section:




(1)  Governor and lieutenant governor


$400




(2)  state offices elected by statewide election, other than the governor and lieutenant governor


$400




(3)  state senator, state representative, state board of education, district attorney, board of public utilities of the city of Kansas City
and elected county offices


$30




(4)  members of boards of education of unified school districts having     
35,000 or more pupils regularly enrolled in the preceding school      year,
members of governing bodies of cities of the first class and      judges of
the district court in judicial districts in which judges are     
elected


$30




.  (b)  The secretary of state shall remit all fees received by that office
to the state treas urer. County election officers receiving fees in
accordance with this section shall remit such fees to the county treasurer of
the county who shall quarterly remit the same to the state treasurer. Upon
receipt of such remittance, the state treasurer shall deposit the entire
amount in the state treasury to the credit of the Kansas
governmental ethics commission on governmental standards and
conduct fee fund.

734                           JOURNAL OF THE HOUSE

  Sec. 9.  K.S.A. 1996 Supp. 25-4143 is hereby amended to read as follows:
25-4143. As used in the campaign finance act, unless the context otherwise
requires:
  (a)  ``Candidate'' means an individual who: (1) Appoints a treasurer or a
candidate com mittee,;
  (2)  makes a public announcement of intention to seek nomination or
election to state or local office,;
  (3)  makes any expenditure or accepts any contribution for the purpose of
influencing such person's nomination or election to any state or local
office,; or
  (4)  files a declaration or petition to become a candidate for state or
local office.
  (b)  ``Candidate committee'' means a committee appointed by a candidate to
receive contributions and make expenditures for the candidate.
  (c)  ``Commission'' means the Kansas governmental ethics
commission on governmental standards and conduct created by K.S.A.
25-4119a and amendments thereto.
  (d) (1)  ``Contribution'' means:
  (A)  Any advance, conveyance, deposit, distribution, gift, loan or payment
of money or any other thing of value made for the purpose of influencing the
nomination or election of any individual to state or local office;
  (B)  a transfer of funds between any two or more candidate committees,
party commit tees or political committees;
  (C)  the payment, by any person other than a candidate, candidate
committee, party committee or political committee, of compensation to an
individual for the personal services rendered without charge to or for a
candidate's campaign or to or for any such committee;
  (D)  the purchase of tickets or admissions to, or advertisements in
journals or programs for, testimonial events;
  (E)  a mailing of materials designed to influence the nomination or
election of a candi date, which is made and paid for by a party committee
with the consent of such candidate.
  (2)  ``Contribution'' does not include:
  (A)  The value of volunteer services provided without compensation;
  (B)  costs to a volunteer related to the rendering of volunteer services
not exceeding a fair market value of $50 during an allocable election period
as provided in K.S.A. 25-4149, and amendments thereto;
  (C)  payment by a candidate or candidate's spouse for personal meals,
lodging and travel by personal automobile of the candidate or candidate's
spouse while campaigning;
  (D)  the value of goods donated to events such as testimonial events, bake
sales, garage sales and auctions by any person not exceeding a fair market
value of $50 per event.
  (e)  ``Election'' means:
  (1)  A primary or general election for state or local office; and
  (2)  a convention or caucus of a political party held to nominate a
candidate for state or local office.
  (f) (1)  ``Expenditure'' means:
  (A)  Any purchase, payment, distribution, loan, advance, deposit or gift of
money or any other thing of value made for the purpose of influencing the
nomination or election of any individual to state or local office;
  (B)  any contract to make an expenditure;
  (C)  a transfer of funds between any two or more candidate committees,
party commit tees or political committees; or
  (D)  payment of a candidate's filing fees.
  (2)  ``Expenditure'' does not include:
  (A)  The value of volunteer services provided without compensation;
  (B)  costs to a volunteer incidental to the rendering of volunteer services
not exceeding a fair market value of $50 during an allocable election period
as provided in K.S.A. 25-4149, and amendments thereto;
  (C)  payment by a candidate or candidate's spouse for personal meals,
lodging and travel by personal automobile of the candidate or candidate's
spouse while campaigning or pay ment of such costs by the treasurer of a
candidate or candidate committee;
  (D)  the value of goods donated to events such as testimonial events, bake
sales, garage sales and auctions by any person not exceeding fair market
value of $50 per event; or

                                 April 2, 1997                              735

  (E)  any communication by an incumbent elected state or local officer with
one or more individuals unless the primary purpose thereof is to influence
the nomination or election of a candidate.
  (g)  ``Party committee'' means:
  (1)  The state committee of a political party regulated by article 3 of
chapter 25 of the Kansas Statutes Annotated, or;
  (2)  the county central committee or the state committee of a political
party regulated under article 38 of chapter 25 of the Kansas Statutes
Annotated or;
  (3)  the bona fide national organization or committee of those political
parties regulated by the Kansas Statutes Annotated, or;
  (4)  not more than one political committee established by the state
committee of any such political party and designated as a recognized
political committee for the senate or; or
  (5)  not more than one political committee established by the state
committee of any such political party and designated as a recognized
political committee for the house of representatives.
  (h)  ``Person'' means any individual, committee, corporation, partnership,
trust, organi zation or association.
  (i)  ``Political committee'' means any combination of two or more
individuals or any person other than an individual, a major purpose of which
is to support or oppose any candidate for state or local office, but not
including any candidate committee or party committee.
  (j)  ``Receipt'' means a contribution or any other money or thing of value,
but not in cluding volunteer services provided without compensation, received
by a treasurer in the treasurer's official capacity.
  (k)  ``State office'' means any state office as defined in K.S.A.
25-2505, and amendments thereto.
  (l)  ``Testimonial event'' means an event held for the benefit of an
individual who is a candidate to raise funds for such candidate's campaign.
Testimonial events include but are not limited to dinners, luncheons,
rallies, barbecues and picnics.
  (m)  ``Treasurer'' means a treasurer of a candidate or of a candidate
committee, a party committee or a political committee appointed under the
campaign finance act or a treasurer of a combination of individuals or a
person other than an individual which is subject to paragraph (2) of
subsection (a) of K.S.A. 25-4172, and amendments thereto.
  (n)  ``Local office'' means a member of the governing body of a city of the
first class, any elected office of a unified school district having 35,000 or
more pupils regularly enrolled in the preceding school year, a county or of
the board of public utilities.
  Sec. 10.  K.S.A. 1996 Supp. 25-4145 is hereby amended to read as follows:
25-4145. (a) Each party committee and each political committee which
anticipates receiving contribu tions or making expenditures shall appoint a
chairperson and a treasurer. The chairperson of each party committee and each
political committee which supports or opposes a candidate for state office
shall make a statement of organization and file it with the secretary of
state not later than 10 days after establishment of such committee. The
chairperson of each political committee, the major purpose of which is to
support or oppose any candidate for local office, shall make a statement of
organization and file it with the county election officer not later than 10
days after establishment of such committee.
  (b)  Every statement of organization shall include:
  (1)  The name and address of the committee;
  (2)  the names and addresses of the chairperson and treasurer of the
committee;
  (3)  the names and addresses of affiliated or connected organizations; and
  (4)  in the case of a political committee, the full name of the
organization with which the committee is connected or affiliated or, name or
description sufficiently describing the affiliation or, if the committee is
not connected or affiliated with any one organization, the trade, profession
or primary interest of contributors of the political committee.
  (c)  Any change in information previously reported in a statement of
organization shall be reported on a supplemental statement of organization
and filed not later than 10 days following the change.

736                           JOURNAL OF THE HOUSE

  (d) (1)  Each political committee which anticipates receiving contributions
shall register annually with the commission on or before July 1 of each year.
Each political committee registration shall be in the form and contain such
information as may be required by the commission.
  (2)  Each registration by a political committee anticipating the receipt of
$2,501 or more in any calendar year shall be accompanied by an annual
registration fee of $200.
  (3)  Each registration by a political committee anticipating the receipt of
more than $500 but less than $2,501 in any calendar year shall be accompanied
by an annual registration fee of $30.
  (4)  Each registration by a political committee anticipating the receipt of
$500 or less in any calendar year shall be accompanied by an annual
registration fee of $15.
  (5)  Any political committee which is currently registered under subsection
(d)(3) or   (d)(4) and which receives contributions in excess of $2,500 for a
calendar year, shall file, within three days of the date when contributions
exceed such amount, an amended regis tration form which shall be accompanied
by an additional fee for such year equal to the difference between $200 and
the amount of the fee that accompanied the current registra tion.
  (6)   Any political committee which is currently registered under
subsection (d)(4) and which receives contributions in excess of $500 but
which are less than $2,501, shall file, within three days of the date when
contributions exceed $500, an amended registration form which shall be
accompanied by an additional fee of $15 for such year.
  (e)  All such fees received by or for the commission shall be remitted to
the state treas urer at least monthly. Upon receipt of each such remittance,
the state treasurer shall deposit the entire amount in the state treasury to
the credit of the Kansas governmental ethics commission on
governmental standards and conduct fee fund.
  Sec. 11.  K.S.A. 1996 Supp. 25-4152 is hereby amended to read as follows:
25-4152. (a) The commission shall send a notice by registered or certified
mail to any person failing to file any report or statement required by K.S.A.
25-4144, 25-4145 or 25-4148, and amend ments thereto, and to the candidate
appointing any treasurer failing to file any such report, within the time
period prescribed therefor. The notice shall state that the required report
or statement has not been filed with either the office of secretary of state
or county election officer or both. The person failing to file any report or
statement, and the candidate ap pointing any such person, shall be
responsible for the filing of such report or statement. The notice
shall also shall state that such person shall have 15 days from
the date such notice is deposited in the mail to comply with the registration
and reporting requirements before a civil penalty shall be imposed for each
day that the required documents remain unfiled. If such person fails to
comply within the prescribed period, such person shall pay to the state a
civil penalty of $10 per day for each day that such report or statement
remains unfiled, except that no such civil penalty shall exceed $300. The
commission may waive, for good cause, payment of any civil penalty imposed by
this section.
  (b)  Civil penalties provided for by this section shall be paid to the
state treasurer, who shall deposit the same in the state treasury to the
credit of the Kansas governmental ethics commission on
governmental standards and conduct fee fund.
  (c)  If a person fails to pay a civil penalty provided for by this section,
it shall be the duty of the attorney general or county or district attorney
to bring an action to recover such civil penalty in the district court of the
county in which such person resides.
  Sec. 12.  K.S.A. 25-4180 is hereby amended to read as follows: 25-4180. (a)
Every per son who engages in any activity promoting or opposing the adoption
or repeal of any pro vision of the Kansas constitution and who accepts moneys
or property for the purpose of engaging in such activity shall make an annual
report to the secretary of state of individual contributions or contributions
in kind in an aggregate amount or value in excess of $50 received during the
preceding calendar year for such purposes. The report shall show the name and
address of each contributor for the activity and the amount or value of the
indi vidual contribution made, together with a total value of all
contributions received, and shall also account for expenditures in an
aggregate amount or value in excess of $50 from such contributions by showing
the amount or value expended to each payee and the purpose of

                                 April 2, 1997                              737

each such expenditure, together with a total value of all expenditures made.
The annual report shall be filed on or before February 15 of each year for
the preceding calendar year.
  In addition to the annual report, a person engaging in an activity
promoting the adoption or repeal of a provision of the Kansas constitution
who accepts any contributed moneys for such activity shall make a preliminary
report to the secretary of state 15 days prior to each election at which a
proposed constitutional amendment is submitted. Such report shall show the
name and address of each individual contributor, together with the amount
contributed or contributed in kind in an aggregate amount or value in excess
of $50, and the expenditures in an aggregate amount or value in excess of $50
from such contributions by showing the amount paid to each payee and the
purpose of the expenditure. A supplemental report in the same format as the
preliminary report shall be filed with the secretary of state within 15 days
after any election on a constitutional proposition where contributed funds
are re ceived and expended in opposing or promoting such proposition.
  Any person who engages in any activity promoting or opposing the adoption
or repeal of any provision of the Kansas constitution shall be considered
engaged in such activity upon the date the concurrent resolution passes the
Kansas house of representatives and senate in its final form. Upon such date,
if the person has funds in the constitutional amendment campaign treasury,
such person shall be required to report such funds as provided by this
section.
  The word ``person'' as used herein means an individual, corporation,
partnership, asso ciation, organization or other legal entity.
  (b) (1)  The commission shall send a notice by registered or certified mail
to any person failing to file any report required by subsection (a) within
the time period prescribed there for. The notice shall state that the
required report has not been filed with the office of the secretary of state.
The notice shall also state that such person shall have 15 days from the date
such notice is deposited in the mail to comply with the reporting
requirements before a civil penalty shall be imposed for each day that the
required documents remain unfiled. If such person fails to comply within the
prescribed period, such person shall pay to the state a civil penalty of $10
per day for each day that such report remains unfiled, except that no such
civil penalty shall exceed $300. The commission may waive, for good cause,
payment of any civil penalty imposed by this section.
  (2)  Civil penalties provided for by this section shall be paid to the
state treasurer, who shall deposit the same in the state treasury to the
credit of the Kansas governmental ethics commission on
governmental standards and conduct fee fund.
  (3)  If a person fails to pay a civil penalty provided for by this section,
it shall be the duty of the attorney general or county or district attorney
to bring an action to recover such civil penalty in the district court of the
county in which such person resides.
  (c)  The intentional failure to file any report required by subsection (a)
is a class A misdemeanor.
  (d)  This section shall be part of and supplemental to the campaign finance
act.
  Sec. 13.  K.S.A. 1996 Supp. 25-4186 is hereby amended to read as follows:
25-4186. (a) Not later than 10 days after receiving any contribution or
making any expenditure for a gubernatorial inauguration, the governor-elect
shall appoint an inaugural treasurer. The name and address of such treasurer
shall be reported to the secretary of state by the gov ernor-elect not later
than 10 days after the appointment.
  (b)  No person shall make any expenditure or make or receive any
contribution or re ceipt, in kind or otherwise, for a gubernatorial
inauguration except by or through the in augural treasurer.
  (c)  The inaugural treasurer shall keep detailed accounts of all
contributions and other receipts received, in kind or otherwise, and all
expenditures made for a gubernatorial in auguration. Accounts of the
treasurer may be inspected under conditions determined by the commission and
shall be preserved for a period to be designated by the commission. Every
person who receives a contribution or other receipt, in kind or otherwise,
for an inaugural treasurer more than five days before the ending date of any
period for which a report is required under this section shall, on demand of
the treasurer, or in any event on or before the ending date of the reporting
period, remit the same and render to the treasurer an account thereof,
including the name and address of the person, if known, making the

738                           JOURNAL OF THE HOUSE

contribution or other receipt and the date received. No contribution or other
receipt re ceived by the inaugural treasurer shall be commingled with
personal funds of the governorelect or inaugural treasurer.
  (d)  The inaugural treasurer shall file with the secretary of state a
report on March 10 and July 10 following the inauguration. The report filed
on March 10 shall be for the period ending on February 28 and the report
filed on July 10 shall be for the period beginning on March 1 and ending on
June 30. Each report shall contain the information required to be stated in a
report pursuant to K.S.A. 25-4148 and 25-4148a, and amendments
thereto, and a declaration as to the correctness of the report in the
form prescribed by K.S.A. 25-4151, and amendments thereto. The July 10
report shall be a termination report which shall include full information as
to the disposition of residual funds. If a report is sent by certified mail
on or before the day it is due, the mailing shall constitute receipt by the
secretary of state.
  (e)  The aggregate amount contributed, in kind or otherwise, by any person
for a gu bernatorial inauguration shall not exceed $2,000. No person shall
make a contribution in the name of another person, and no person shall
knowingly accept a contribution made by one person in the name of another. No
person shall give or accept any contribution in excess of $10 unless the name
and address of the contributor is made known to the individual receiving the
contribution. The aggregate of contributions for which the name and address
of the contributor is not known shall not exceed 50% of the amount one person
may con tribute.
  (f)  No person shall copy any name of a contributor from any report filed
under this section and use such name for any commercial purpose, and no
person shall use any name for a commercial purpose with knowledge that such
name was obtained solely by copying information relating to contributions
contained in any report filed under this section.
  (g)  In addition to other reports required by this section, the inaugural
treasurer shall report the amount and nature of debts and obligations owed
for the gubernatorial inaugu ration, at times prescribed by the commission,
continuing until such debts and obligations are fully paid or discharged.
  (h)  No moneys received by any inaugural treasurer shall be used or be made
available for the personal use of the governor-elect or governor and no such
moneys shall be used by such governor-elect or governor except for legitimate
gubernatorial inauguration ex penses.
  For the purpose of this subsection, expenditures for ``personal use'' shall
include expend itures to defray normal living expenses and expenditures for
personal benefit having no direct connection with or effect upon the
inauguration.
  (i)  Before the filing of a termination report in accordance with this
section all residual funds not otherwise obligated for the payment of
expenses incurred for the gubernatorial inauguration shall be remitted to the
state treasurer who shall deposit the entire amount in the state treasury and
credit:
  (1)  To the inaugural expense fund created by K.S.A. 1996 Supp. 25-4187,
and amend ments thereto: (A) An amount equal to the amount certified to
the director of accounts and reports by the adjutant general as the amount
expended by the adjutant general for expenses incurred in connection with the
gubernatorial inauguration; or (B) if the amount of residual funds is less
than the amount certified, the entire amount of the deposit; and
  (2)  to the Kansas governmental ethics commission on
governmental standards and con duct fee fund created by K.S.A. 25-4119e
and amendments thereto, any remaining balance.
  (j) (1)  The commission shall send a notice by registered or certified mail
to any inau gural treasurer who fails to file any report required by this
section within the time period prescribed therefor. The notice shall state
that the required report has not been filed with the office of the secretary
of state. The notice shall also state that the treasurer shall have 15 days
from the date such notice is deposited in the mail to comply with the
reporting requirements before a civil penalty shall be imposed for each day
that the required docu ments remain unfiled. If the treasurer fails to comply
within the prescribed period, the treasurer shall pay to the state a civil
penalty of $10 per day for each day that the report remains unfiled, except
that no such civil penalty shall exceed $300. The commission may waive, for
good cause, payment of any civil penalty imposed by this subsection.

                                 April 2, 1997                              739

  (2)  Civil penalties provided for by this subsection shall be paid to the
state treasurer, who shall deposit the entire amount in the state treasury
and credit it to the Kansas gov ernmental ethics commission on
governmental standards and conduct fee fund.
  (3)  If a person fails to pay a civil penalty provided for by this section,
it shall be the duty of the attorney general to bring an action to recover
such civil penalty in the district court of Shawnee county.
  (k)  Any violation of subsection (e), (f) or (h) or any intentional failure
to file any report required by this section is a class A misdemeanor.
  (l)  Nothing in this section shall be construed to apply to expenditures of
state moneys related to any inaugural activity.
  (m)  This section shall be part of and supplemental to the campaign finance
act.
  Sec. 14.  K.S.A. 46-246a is hereby amended to read as follows: 46-246a. (a)
From and after the effective date of this act, no state officer or employee
shall advocate or cause the employment, appointment, promotion, transfer or
advancement to any office or position of the state, of a member of such
officer's or employee's household or a family member.
  (b)  No state officer or employee shall participate in an action relating
to the employment or discipline of a member of the officer's or employee's
household or a family member.
  (c)  The provisions of this section shall not apply to appointments of
members of the governor's staff, nor shall it apply to any action involving
the employment, appointment, promotion, transfer or advancement of any
officer or employee occurring prior to the ef fective date of this act.
  (d)  The provisions of this section shall be subject to interpretation and
enforcement by the Kansas governmental ethics commission on
governmental standards and conduct in the manner provided by K.S.A. 46-253
through 46-263, and amendments thereto.
  Sec. 15.  K.S.A. 46-253 is hereby amended to read as follows: 46-253.
``Commission'' as used in K.S.A. 46-215 to 46-280, inclusive, and any
amendments thereto, and K.S.A. 46248a means the Kansas governmental
ethics commission on governmental standards and conduct created by
K.S.A. 25-4119a, and amendments thereto. The commission may adopt rules
and regulations for the administration of the provisions of K.S.A. 46-215 to
46-280, inclusive, and amendments thereto, and K.S.A. 46-248a, and
amendments thereto. Any such rules and regulations adopted by the Kansas
public disclosure commission on governmental standards and
conduct shall continue in force and effect and shall be deemed to be the
rules and regulations of the commission created by K.S.A. 25-4119a, and
amendments thereto, until revised, amended, repealed or nullified pursuant
to law. All rules and regu lations of the commission shall be subject to the
provisions of article 4 of chapter 77 of Kansas Statutes Annotated.
  Sec. 16.  K.S.A. 1996 Supp. 46-265 is hereby amended to read as follows:
46-265. (a) Every lobbyist shall register with the secretary of state by
completing and signing a regis tration form prescribed and provided by the
commission. Such registration shall show the name and address of the
lobbyist, the name and address of the person compensating the lobbyist for
lobbying, the purpose of the employment and the method of determining and
computing the compensation of the lobbyist. If the lobbyist is compensated or
to be com pensated for lobbying by more than one employer or is to be engaged
in more than one employment, the relevant facts listed above shall be
separately stated for each employer and each employment. Whenever any new
lobbying employment or lobbying position is accepted by a lobbyist already
registered as provided in this section, such lobbyist shall report the same
on forms prescribed and provided by the commission before engaging in any
lobbying activity related to such new employment or position, and such report
shall be filed with the secretary of state. When a lobbyist is an employee of
a lobbying group or firm which con tracts to lobby and not an owner or
partner of such entity, the lobbyist shall report each client of the group,
firm or entity whose interest the lobbyist represents. Whenever the lobbying
of a lobbyist concerns a legislative matter, the secretary of state shall
promptly transmit copies of each registration and each report filed under
this act to the secretary of the senate and the chief clerk of the house of
representatives.
  (b)  On or after October 1, in any year any person may register as a
lobbyist under this section for the succeeding calendar year. Such
registration shall expire annually on Decem ber 31, of the year for which the
lobbyist is registered. In any calendar year, before engaging

740                           JOURNAL OF THE HOUSE

in lobbying, persons to whom this section applies shall register or renew
their registration as provided in this section. Except for employees of
lobbying groups or firms, every person registering or renewing registration
who anticipates spending $1,000 or less for lobbying in such registration
year on behalf of any one employer shall pay to the secretary of state a fee
of $30 for lobbying for each such employer. Except for employees of lobbying
groups or firms, every person registering or renewing registration who
anticipates spending more than $1,000 for lobbying in such registration year
on behalf of any one employer shall pay to the secretary of state a fee of
$250 for lobbying for such employer. Any lobbyist who at the time of initial
registration anticipated spending less than $1,000, on behalf of any one
employer, but at a later date spends in excess of such amount, shall, within
three days of the date when expenditures exceed such amount, file an amended
registration form which shall be accom panied by an additional fee of $220
for such year. Every person registering or renewing registration as a
lobbyist who is an employee of a lobbying group or firm and not an owner or
partner of such entity shall pay an annual fee of $300. The secretary of
state shall remit all moneys received under this section to the state
treasurer, and the state treasurer shall deposit the same in the state
treasury to the credit of the Kansas governmental ethics com
mission on governmental standards and conduct fee fund.
  (c)  Any person who has registered as a lobbyist pursuant to this act may
file, upon termination of such person's lobbying activities, a statement
terminating such person's reg istration as a lobbyist. Such statement shall
be on a form prescribed by the commission and shall state the name and
address of the lobbyist, the name and address of the person com pensating the
lobbyist for lobbying and the date of the termination of the lobbyist's
lobbying activities.
  (d)  No person who has failed or refused to pay any civil penalty imposed
pursuant to K.S.A. 46-280, and amendments thereto, shall be authorized or
permitted to register as a lobbyist in accordance with this section until
such penalty has been paid in full.
  Sec. 17.  K.S.A. 46-280 is hereby amended to read as follows: 46-280. (a)
The commis sion shall send a notice by registered or certified mail to any
person failing to register or to file any report or statement as required by
K.S.A. 46-247, 46-265 or 46-268, and amend ments thereto, within the time
period prescribed therefor. The notice shall state that the required
registration, report or statement had not been filed with the office of
secretary of state. The notice shall also state that such person shall have
five days from the date of receipt of such notice to comply with the
registration and reporting requirements before a civil penalty shall be
imposed for each day that the required documents remain unfiled. If such
person fails to comply within such period, such person shall pay to the state
a civil penalty of $10 per day for each day that such person remains
unregistered or that such report or statement remains unfiled, except that no
such civil penalty shall exceed $300. The com mission may waive, for good
cause, payment of any civil penalty imposed hereunder.
  (b)  Whenever the commission shall determine that any report filed by a
lobbyist as required by K.S.A. 46-269, and amendments thereto, is
incorrect, incomplete or fails to provide the information required by such
section, the commission shall notify such lobbyist by registered or certified
mail, specifying the deficiency. Such notice shall state that the lobbyist
shall have 30 days from the date of the receipt of such notice to file an
amended report correcting such deficiency before a civil penalty will be
imposed and the registration of such lobbyist revoked and the badge be
required to be returned to the office of the secretary of state. A copy of
such notice shall be sent to the office of the secretary of state. If such
lobbyist fails to file an amended report within the time specified, such
lobbyist shall pay to the commission a civil penalty of $10 per day for each
day that such person fails to file such report except that no such civil
penalty shall exceed $300. On the 31st day following the receipt of such
notice the registration of any lobbyist failing to file such amended report
shall be revoked.
  (c)  Civil penalties provided for by this section shall be paid to the
state treasurer, who shall deposit the same in the state treasury to the
credit of the Kansas governmental ethics commission on
governmental standards and conduct fee fund.
  (d) (1)  Except as provided in subsection (2), if a person fails to pay a
civil penalty provided for by this section, it shall be the duty of the
attorney general or county or district

                                 April 2, 1997                              741

attorney to bring an action to recover such civil penalty in the district
court of the county in which such person resides.
  (2)  If a person required to file under subsection (f) of K.S.A.
46-247, and amendments thereto, fails to pay a civil penalty
provided for by this section, it shall be the duty of the attorney general to
bring an action to recover such civil penalty in the district court of
Shawnee County, Kansas.
  Sec. 18.  K.S.A. 46-288 is hereby amended to read as follows: 46-288. The
commission, in addition to any other penalty prescribed under K.S.A. 46-215
through 46-286, and amend ments thereto, may assess a civil fine, after
proper notice and an opportunity to be heard, against any person for a
violation pursuant to K.S.A. 46-215 through 46-286, and amend ments thereto,
in an amount not to exceed $5,000 for the first violation, not to exceed
$10,000 for the second violation and not to exceed $15,000 for the third
violation and for each subsequent violation. All fines assessed and collected
under this section shall be re mitted promptly to the state treasurer. Upon
receipt thereof, the state treasurer shall deposit the entire amount in the
state treasury and credit it to the Kansas governmental ethics
commission on governmental standards and conduct fee fund.
  Sec. 19.  K.S.A. 1996 Supp. 75-4302a is hereby amended to read as follows:
75-4302a.   (a) The statement of substantial interests shall include all
substantial interests of the indi vidual making the statement.
  (b)  Statements of substantial interests shall be filed by the following
individuals at the times specified:
  (1)  By a candidate for local office who becomes a candidate on or before
the filing deadline for the office, not later than 10 days after the filing
deadline, unless before that time the candidacy is officially declined or
rejected.
  (2)  By a candidate for local office who becomes a candidate after the
filing deadline for the office, within five days of becoming a candidate,
unless within that period the candidacy is officially declined or rejected.
  (3)  By an individual appointed on or before April 30 of any year to fill a
vacancy in an elective office of a governmental subdivision, between April 15
and April 30, inclusive, of that year.
  (4)  By an individual appointed after April 30 of any year to fill a
vacancy in an elective office of a governmental subdivision, within 15 days
after the appointment.
  (5)  By any individual holding an elective office of a governmental
subdivision, between April 15 and April 30, inclusive, of any year if, during
the preceding calendar year, any change occurred in the individual's
substantial interests.
  (c)  The statement of substantial interests required to be filed pursuant
to this section shall be filed in the office where declarations of candidacy
for the local governmental office sought or held by the individual are
required to be filed.
  (d)  The Kansas governmental ethics commission on
governmental standards and con duct shall adopt rules and regulations
prescribing the form and the manner for filing the disclosures of substantial
interests required by law. The commission shall provide samples of the form
of the statement to each county election officer.
  (e)  If an individual or an individual's spouse holds the position of
officer, director, as sociate, partner or proprietor in an organization
exempt from federal taxation of corporations under section 501(c)(3), (4),
(6), (7), (8), (10) or (19) of chapter 26 of the United States code, the
individual shall comply with all disclosure provisions of subsections (a),
(b), (c) and (d) of this section notwithstanding the provisions of K.S.A.
75-4301, and amendments thereto, which provide that these
individuals may not have a substantial interest in these corporations.
  Sec. 20.  K.S.A. 1996 Supp. 75-4303a is hereby amended to read as follows:
75-4303a.   (a) The Kansas governmental ethics commission on
governmental standards and conduct shall render advisory opinions on the
interpretation or application of K.S.A. 75-4301a, 754302a, 75-4303a, 75-4304,
75-4305 and 75-4306, and amendments thereto. The opinions shall be
rendered after receipt of a written request therefor by a local governmental
officer or employee or by any person who has filed as a candidate for local
office. Any person who requests and receives an advisory opinion and who acts
in accordance with its provisions shall be presumed to have complied with the
provisions of the general conflict of interests

742                           JOURNAL OF THE HOUSE

law. A copy of any advisory opinion rendered by the commission shall be filed
by it in the office of the secretary of state, and any opinion so filed shall
be open to public inspection. All requests for advisory opinions shall be
directed to the secretary of state who shall notify the commission thereof.
  (b)  The Kansas governmental ethics commission on
governmental standards and con duct shall administer K.S.A. 75-4301a,
75-4302a, 75-4303a, 75-4304, 75-4305 and 75-4306, and amendments
thereto, and may adopt rules and regulations therefor.
  Sec. 21.  K.S.A. 21-3914, 25-4119a, 25-4119e, 25-4180, 45-220, 46-246a,
46-253, 46271, 46-277, 46-280 and 46-288 and K.S.A. 1996 Supp. 25-4119f,
25-4143, 25-4145, 254152, 25-4186, 46-236, 46-237, 46-265, 75-4302a and
75-4303a are hereby repealed.'';
  And by renumbering sections accordingly;
  In the title, by striking all in lines 15 through 18 and inserting:
  ``AN ACT concerning public officers and employees; changing the name of the
Kansas commission on governmental standards and conduct; limiting certain
contributions; impos ing certain penalties; amending K.S.A. 21-3914,
25-4119a, 25-4119e, 25-4180, 45-220, 46246a, 46-253, 46-271, 46-280 and
46-288 and K.S.A. 1996 Supp. 25-4119f, 25-4143, 254145, 25-4152, 25-4186,
46-236, 46-237, 46-265, 75-4302a and 75-4303a and repealing the existing
sections; also repealing K.S.A. 46-277.'';
  Also, on further motion of Rep. Campbell SB 116 be amended on page 2,
following line 16, by inserting:
  ``Sec. 2.  K.S.A. 25-4153a is hereby amended to read as follows: 25-4153a.
No registered lobbyist or, political committee or person,
other than an individual, shall make a contribution as defined by
subsection (d) of K.S.A. 25-4143, and amendments thereto, to any
legislator, candidate for membership in the senate or house of
representatives or, candidate committee for any such legislator
or candidate, state officer elected on a statewide basis, candidate for
state office elected on a statewide basis or candidate committee for any such
officer or candidate after January 1 and prior to May 15 of any year
of each year and prior to adjourn ment sine die of the regular session
of the legislature or at any other time in which the legislature is in
session and. No such legislator, officer, candidate or
committee shall accept or solicit any contribution as defined by
subsection (d) of K.S.A. 25-4143, and amendments thereto, from
any registered lobbyist or, political committee or person,
other than an indi vidual, during such period.'';
  By renumbering sections accordingly;
  On page 6, in line 32, before ``45-220'' by inserting ``25-4153a,'';
  In the title, in line 16, following the semicolon, by inserting ``relating
to contributions for the election of such officers;''; in line 17, before
``45-220'' by inserting ``25-4153a,'';
  Also, on motion of Rep. Benlon to amend SB 116, the motion was
withdrawn. Also, on further motion of Rep. Benlon, be amended on page 6,
following line 31, by inserting:
  ``Sec. 6.  K.S.A. 1996 Supp. 25-4181 is hereby amended to read as follows:
25-4181. (a) The commission, in addition to any other penalty prescribed
under the campaign finance act, may assess a civil fine, after proper notice
and an opportunity to be heard, against any person for a violation of the
campaign finance act in an amount not to exceed $5,000 for the first
violation, $10,000 for the second violation and $15,000 for the third
violation and for each subsequent violation. Whenever any civil fine or
penalty is proposed to be assessed against the treasurer of any candidate who
is not also the candidate, such notice shall be given to both the treasurer
and the candidate prior to the assessment of such fine or penalty. All fines
assessed and collected under this section shall be remitted promptly to the
state treasurer. Upon receipt thereof, the state treasurer shall deposit the
entire amount in the state treasury and credit it to the Kansas
governmental ethics commission on governmental standards and
conduct fee fund.
  (b)  In addition to any other penalty prescribed under subsection (a) or
any other penalty prescribed under the campaign finance act, the commission
may assess a civil fine, after proper notice and an opportunity to be heard,
against any candidate who accepts, or whose candidate committee accepts,
contributions in excess of the limitations specified in subsec tions (a),
(d), (g) and (i) of K.S.A. 25-4153 and 25-4153a, and amendments thereto. The
amount of such penalty shall be equal to 1/2 of the amount which is in excess
of the amount authorized by such subsections, not to exceed $100. Such
penalty may be imposed without

                                 April 2, 1997                              743

proof of intent to violate the provisions of such subsections. The commission
may waive, for good cause, payment of any civil fine imposed pursuant to this
subsection.
  (b) (c)  No individual who has failed to pay any civil penalty
or civil fine assessed, or failed to file any report required to be filed,
under the campaign finance act, unless such penalty or fine has been waived
or is under appeal, shall be eligible to become a candidate for state office
or local office under the laws of the state until such penalty or fine has
been paid or is on appeal or such report has been filed or both such penalty
or fine has been paid and such report filed.'';
  By renumbering sections accordingly;
  Also on page 6, in line 33, before ``46-236'' by inserting ``25-4181,'';
  In the title, in line 16, following the semicolon, by inserting
``concerning certain fines;''; in line 17, following ``Supp.'' by inserting
``25-4181,'';
  Also, roll call was demanded on motion of Rep. Benlon and SB 116 be
amended on page 2, following line 16, by inserting:
  ``Sec. 2.  K.S.A. 25-4156 is hereby amended to read as follows: 25-4156.
(a) (1) When ever any person sells space in any newspaper, magazine or other
periodical to a candidate or to a candidate committee, party committee or
political committee, the charge made for the use of such space shall not
exceed the charges made for comparable use of such space for other purposes.
  (2)  Intentionally charging an excessive amount for political advertising
is a class A mis demeanor.
  (b) (1)  Corrupt political advertising of a state or local office is:
  (A)  Publishing or causing to be published in a newspaper or other
periodical any paid matter which is designed or tends to aid, injure or
defeat any candidate for nomination or election to a state or local office,
unless such matter is followed by the word ``advertisement'' or the
abbreviation ``adv.'' in a separate line together with: (1) The name of
the chairperson or treasurer of the political or other organization
inserting the same or authorizing such matter; (2) the name of
the person individual who is responsible therefor paying
for such matter; and (3) the city and state of residence of such individual
or the city and state in which the primary office of such organization is
located. If such matter is paid for and authorized by a candidate or such
candidate's candidate committee, such matter need only identify the
chairperson or treasurer authorizing such matter;
  (B)  publishing or causing to be published any brochure, flier, letter,
postcard or other political fact sheet any paid matter which is designed or
tends to aid, injure or defeat any candidate for nomination or election to a
state or local office, unless such matter is followed by: (1) The name of the
chairperson or treasurer of the political or other organization au thorizing
such matter; (2) the name of the individual who is paying for such matter;
and (3) the city and state of residence of such individual or the city and
state in which the primary office of such organization is located.  If such
matter is paid for and authorized by a candidate or such candidate's
candidate committee, such matter need only identify the chairperson or
treasurer sponsoring such matter; or
  or (C)  broadcasting or causing to be broadcast by any radio or
television station any paid matter which is designed or tends to aid, injure
or defeat any candidate for nomination or election to a state or local
office, unless such matter is followed by a statement that the preceding was
an advertisement together with: (1) The name of the chairperson or
treasurer of the political or other organization sponsoring the same or
authorizing such matter; (2) the name of the person
individual who is responsible therefor paying for such
matter; and   (3) the city and state of residence of such individual or the
city and state in which the primary office of such organization is located.
If such matter is paid for and authorized by a candidate or such candidate's
candidate committee, such matter need only identify the chairperson or
treasurer authorizing such matter.
  (2)  The provisions of this subsection requiring the disclosure of the
name of an individual shall not apply to individuals making expenditures in
an aggregate amount of less than $100 within a calendar year.
  (2) (3)  Corrupt political advertising of a state or local
office is a class C misdemeanor.
  (c) (1)  Unfair political advertising of a state or local office is:

744                           JOURNAL OF THE HOUSE

  (A)  Publishing or causing to be published in any newspaper or other
periodical, bro chure, flier, letter, postcard or other political fact sheet
any paid matter which is designed to aid, injure or defeat any candidate for
nomination or election by the use of a candidate's voting record on any
legislative measure which involved more than one material issue with out
including in such publication, a statement that other issues may have been
included in the legislative measure which are not addressed in such
publication; or
  (B)  broadcasting or causing to be broadcast by any radio or television
station any paid matter which is designed or tends to aid, injure or defeat
any candidate for nomination or election by the use of a candidate's voting
record on any legislative measure which involved more than one material issue
without including in such broadcast a statement that other issues may have
been included in the legislative measure which are not addressed in such
broadcast.
  (2)  Unfair political advertising involving a state or local office is a
class C misdemeanor.
  (d)  It shall be a defense to a prosecution or imposition of a civil fine
under this section if the person accused of violating this section has
secured a written certification from the person authorizing or paying for the
advertising that such person has included the infor mation required by this
section in such advertisement.'';
  By renumbering sections accordingly;
  On page 6, in line 32, before ``45-220'' by inserting ``25-4156,'';
  In the title, in line 16, following the semicolon, by inserting ``relating
to certain publications;''; in line 17, before ``45-220'' by inserting
``25-4156,'';
  On roll call, the vote was: Yeas 73; Nays 49; Present but not voting 0;
Absent or not voting 3.
  Yeas: Adkins, Alldritt, Allen, Ballard, Ballou, Beggs, Benlon, Burroughs,
Campbell, Cor rell, Cox, Crow, Dillon, Dreher, Edmonds, Empson, Feuerborn,
Findley, Flaharty, Flora, Garner, Gilbert, Glasscock, Grant, Gregory, Haley,
Henry, Holmes, Horst, Huff, Johnston, Kirk, Phil Kline, Krehbiel, Kuether,
Lane, Larkin, Lloyd, J. Long, McClure, McKechnie, Minor, Nichols, Palmer, E.
Peterson, J. Peterson, Phelps, Powers, Presta, Ray, Reardon, Reinhardt, Ruff,
Samuelson, Sawyer, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Span
gler, Stone, Storm, Swenson, Toelkes, Tomlinson, Toplikar, Weiland, Wells,
Welshimer, Wempe, Wilk.
  Nays: Aurand, Boston, Bradley, Carmody, Compton, Dahl, Faber, Farmer,
Flower, Franklin, Freeborn, Geringer, Gilmore, Hayzlett, Henderson, Howell,
Humerickhouse, Hutchins, Jennison, Johnson, Kejr, Phill Kline, Landwehr, P.
Long, Mason, Mayans, Mays, McCreary, McKinney, Mollenkamp, Morrison, Myers,
Neufeld, O'Connor, O'Neal, Os borne, Packer, Pauls, Pottorff, Powell,
Schwartz, Shallenburger, Tanner, Thimesch, Vickrey, Vining, Wagle, Weber,
Wilson.
  Present but not voting: None.
  Absent or not voting: Dean, Helgerson, Klein.
  The motion of Rep. Benlon prevailed.
  Also, roll call was demanded on further motion of Rep. Benlon to amend
SB 116 on page 2, following line 16, by inserting:
  ``Sec. 2.  K.S.A. 25-4150 is hereby amended to read as follows: 25-4150.
  (a)  Except as specifically provided by this section, the words and
phrases used in this section shall have the same meaning ascribed thereto by
K.S.A. 25-4143, and amendments thereto.
  (b)  When used in this section:
  (1)  ``Person'' means a person as defined by K.S.A. 25-4143, and amendments
thereto, who makes expenditures in an aggregate amount of $100 or more within
a calendar year.
  (2)  ``Expenditure'' means:
  (A)  Any purchase, payment, distribution, loan, advance, deposit or gift of
money or any other thing of value made for the purpose of:
  (i)  Directly or indirectly influencing the nomination or election of any
candidate; or (ii) providing information which has the effect of directly or
indirectly influencing the nomi nation or election of any candidate; or (iii)
influencing the outcome of any election;
  (B)  any contract to make an expenditure;

                                 April 2, 1997                              745

  (C)  a transfer of funds between any two or more candidate committees,
party committees or political committees; and
  (D)  payment of a candidate's filing fees.
  (3)  ``Expenditure'' does not include:
  (A)  The value of volunteer services provided without compensation;
  (B)  costs to a volunteer incidental to the rendering of volunteer services
not exceeding a fair market value of $50 during an allocable election period
as provided in K.S.A. 25-4149 and amendments thereto;
  (C)  payment by a candidate or candidate's spouse for personal meals,
lodging and travel by personal automobile of the candidate or candidate's
spouse while campaigning or payment of such costs by the treasurer of a
candidate or candidate committee;
  (D)  the value of goods donated to events such as testimonial events, bake
sales, garage sales and auctions by any person not exceeding fair market
value of $50 per event;
  (E)  any communication by an incumbent elected state or local officer with
one or more individuals unless the primary purpose thereof is to directly or
indirectly influence the nomination or election of any candidate or providing
information which has the effect of directly or indirectly influencing the
nomination or election of any candidate;
  (F)  costs associated with internal organizational communications of
business, labor, pro fessional or other associations;
  (G)  costs associated with any news story, commentary or editorial
distributed in the ordinary course of business by a broadcasting station,
newspaper, other periodical publi cation or by internet communication; or
  (H)  costs associated with nonpartisan activities designed to encourage
individuals to register to vote or to vote.
  (c)  Prior to making an expenditure, any person who is not subject to the
provisions of K.S.A. 25-4144, 25-4145, or 25-4172, and amendments thereto,
shall make and file a state ment of intent of expenditure. For the purposes
of this subsection person shall not include persons who make contributions to
a candidate or candidate committee. Such statement shall be filed in the
office of the secretary of state. If the expenditure is to support or oppose
any candidate for local office, such statement shall be filed in the office
of the county clerk of the county in which such person is on the ballot.
Every statement of intent shall include:
  (1)  The name and address of the person;
  (2)  the name and address of the chairperson of the organization, if the
person is not an individual; and
  (3)  the full name and address of any organization with which the person is
connected or affiliated or, name or description sufficiently describing the
affiliation or, if the person is not connected or affiliated with any one
organization, the trade, profession or primary interest of contributors of
the person.
  (d)  Each person subject to this section shall maintain, in such person's
own records, the name and address of any person, including an individual, who
has made one or more con tributions to such person, together with the amount
and date of such contributions, regard less of whether such information is
required to be reported.
  (e)  Any change in information previously reported in a statement of intent
shall be reported on a supplemental statement of intent and filed not later
than 10 days following the change.
  (f) (1)  Prior to making an expenditure any person required to file a
statement of intent pursuant to this section shall register annually with the
commission on or before July 1 of each year. Such registration shall be in
the form and contain such information as may be required by the commission.
  (2)  Each registration by a person anticipating the expenditure of $2,501
or more in any calendar year shall be accompanied by an annual registration
fee of $200.
  (3)  Each registration by a person anticipating the expenditure of more
than $500 but less than $2,501 in any calendar year shall be accompanied by
an annual registration fee of $30.
  (4)  Each registration by a person anticipating the expenditure of $500 or
less in any calendar year shall be accompanied by an annual registration fee
of $15.

746                           JOURNAL OF THE HOUSE

  (5)  Any person which is currently registered under subsection (f)(3) or
(f)(4) and which expends in excess of $2,500 for a calendar year, shall file,
within three days of the date when expenditures exceed such amount, an
amended registration form which shall be accompanied by an additional fee for
such year equal to the difference between $200 and the amount of the fee that
accompanied the current registration.
  (6)  Any person which is currently registered under subsection (f)(4) and
which expends in excess of $500 but less than $2,501, shall file, within
three days of the date when expend itures exceed $500, an amended
registration form which shall be accompanied by an addi tional fee of $15 for
such year.
  (g)  All such fees received by or for the commission shall be remitted to
the state treasurer at least monthly. Upon receipt of each such remittance,
the state treasurer shall deposit the entire amount in the state treasury to
the credit of the Kansas commission on governmental standards and conduct fee
fund.
  (h)  Every person, other than a candidate or a candidate committee,
party committee or political committee, who makes contributions or
expenditures, other than by contribution to a candidate or a candidate
committee, party committee or political committee, in an aggregate amount of
$100 or more within a calendar year shall make statements containing the
information required by K.S.A. 25-4148 and amendments thereto, and file them
in the office or offices required so that each such statement is in such
office or offices on the day specified in K.S.A. 25-4148 and amendments
thereto. If such contributions or expenditures are made to support or oppose
a candidate for state office, other than that of an officer elected on a
state-wide basis such statement shall be filed in both the office of the
secretary of state and in the office of the county election officer of the
county in which the candidate is a resident. If such contributions or
expenditures are made to support or oppose a candidate for statewide office
such statement shall be filed only in the office of the secretary of state.
If such contributions or expenditures are made to support or oppose a
candidate for local office such statement shall be filed in the office of the
county election officer of the county in which the candidate is a resident
on the ballot. Reports made under this section need not be
cumulative.
  Sec. 3.  K.S.A. 1996 Supp. 25-4152 is hereby amended to read as follows:
25-4152. (a) The commission shall send a notice by registered or certified
mail to any person failing to file any report or statement required by K.S.A.
25-4144, 25-4145 or 25-4148, 25-4148 or 25-4150, and amendments
thereto, and to the candidate appointing any treasurer failing to file any
such report, within the time period prescribed therefor. The notice shall
state that the required report or statement has not been filed with either
the office of secretary of state or county election officer or both. The
person failing to file any report or statement, and the candidate appointing
any such person, shall be responsible for the filing of such report or
statement. The notice also shall also state that such person
shall have 15 days from the date such notice is deposited in the mail to
comply with the registration and reporting requirements before a civil
penalty shall be imposed for each day that the required docu ments remain
unfiled. If such person fails to comply within the prescribed period, such
person shall pay to the state a civil penalty of $10 per day for each day
that such report or statement remains unfiled, except that no such civil
penalty shall exceed $300. The com mission may waive, for good cause, payment
of any civil penalty imposed by this section.
  (b)  Civil penalties provided for by this section shall be paid to the
state treasurer, who shall deposit the same in the state treasury to the
credit of the Kansas commission on governmental standards and conduct fee
fund.
  (c)  If a person fails to pay a civil penalty provided for by this section,
it shall be the duty of the attorney general or county or district attorney
to bring an action to recover such civil penalty in the district court of the
county in which such person resides.'';
  By renumbering sections accordingly;
  On page 6, in line 32, before ``45-220'' by inserting ``25-4150,''; in line
33, following ``Supp.'' by inserting ``25-4152,'';
  In the title, in line 16, following the semicolon, by inserting ``relating
to contributions for the election of such officers;''; in line 17, before
``45-220'' by inserting ``25-4150,''; also in line 17, following ``Supp.'' by
inserting ``25-4152,'';

                                 April 2, 1997                              747

  On roll call, the vote was: Yeas 50; Nays 70; Present but not voting 0;
Absent or not voting 5.
  Yeas: Adkins, Alldritt, Ballard, Benlon, Burroughs, Campbell, Correll, Cox,
Dillon, Dreher, Edmonds, Feuerborn, Findley, Flaharty, Flora, Gilbert,
Glasscock, Grant, Haley, Henry, Holmes, Horst, Huff, Kirk, Phil Kline,
Krehbiel, Kuether, Lane, J. Long, Nichols, E. Peterson, Phelps, Pottorff,
Ray, Reardon, Reinhardt, Samuelson, Sawyer, Sharp, Shore, Showalter, Shultz,
Sloan, Spangler, Storm, Toelkes, Tomlinson, Weiland, Wells, Welshimer.
  Nays: Allen, Aurand, Ballou, Beggs, Boston, Bradley, Carmody, Compton,
Crow, Dahl, Empson, Faber, Farmer, Flower, Franklin, Freeborn, Garner,
Geringer, Gilmore, Gregory, Hayzlett, Henderson, Howell, Humerickhouse,
Hutchins, Jennison, Johnson, Johnston, Kejr, Phill Kline, Landwehr, Lloyd, P.
Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKinney, Minor,
Mollenkamp, Morrison, Myers, Neufeld, O'Connor, O'Neal, Osborne, Packer,
Palmer, Pauls, J. Peterson, Powell, Powers, Presta, Ruff, Schwartz,
Shallenburger, Stone, Swenson, Tanner, Thimesch, Toplikar, Vickrey, Vining,
Wagle, We ber, Wempe, Wilk, Wilson.
  Present but not voting: None.
  Absent or not voting: Dean, Helgerson, Klein, Larkin, Shriver.
  The motion of Rep. Benlon did not prevail.
  Also, on motion of Rep. Vickrey to amend SB 116, the motion did not
prevail.
  Also, on motion of Rep. Presta SB 116 be amended on page 4, in line
22, by reinserting the stricken language and in lines 23 through 25 by
reinserting the stricken language; and in lines 31 and 32 by reinserting the
stricken language and in lines 33 through 35 by rein serting the stricken
language; and in line 41 by reinserting the stricken language; and on page 5,
in lines 5 and 6 by reinserting the stricken language; and by striking all in
lines 12 through 17; and on page 6, in line 17, by reinserting the stricken
language;
  Also, on motion of Rep. Mays to amend SB 116, Rep. McKechnie
requested a ruling on the amendment being germane to the bill. The Rules
Chair ruled the amendment germane. The question then reverted back to the
motion of Rep. Mays and SB 116 be amended on page 2, following line 16,
by inserting:
  ``Sec. 2.  K.S.A. 25-2023 is hereby amended to read as follows: 25-2023.
Each board member shall qualify by filing an oath of office with the election
officer not later than ten (10) 10 days following the date of the
election, or not later than five (5) days after issuance of such
member's certificate of election, whichever is the later date. Each board
member shall take office on the July 1 following the general school The
term of office shall commence with and include the first regular meeting of
the board following certification of the election. Each member elected to
a board of education shall hold office until a successor is elected or
appointed and qualified and shall serve for a term of four (4)
years.'';
  By renumbering sections accordingly;
  On page 6, in line 32, before ``45-220,'' by inserting ``25-2023,'';
  In the title, in line 16, before ``amending'' by inserting ``relating to
terms of office;''; in line 17, before ``45-220'' by inserting ``25-2023,'';
  Also, on motion of Rep. Garner SB 116 be amended by striking the
entire Benlon No. 5 Amendment (FAS116S22) and further amending on page 2,
following line 16, by inserting:
  ``Sec. 2.  K.S.A. 25-4156 is hereby amended to read as follows: 25-4156.
(a) (1) When ever any person sells space in any newspaper, magazine or other
periodical to a candidate or to a candidate committee, party committee or
political committee, the charge made for the use of such space shall not
exceed the charges made for comparable use of such space for other purposes.
  (2)  Intentionally charging an excessive amount for political advertising
is a class A mis demeanor.
  (b) (1)  Corrupt political advertising of a state or local office is:
  (A)  Publishing or causing to be published in a newspaper or other
periodical any paid matter which is designed or tends to aid, injure or
defeat any candidate for nomination or election to a state or local office,
unless such matter is followed by the word ``advertisement'' or the
abbreviation ``adv.'' in a separate line together with: (1) The name of
the chairperson or treasurer of the political or other organization
inserting the same or authorizing such matter; (2) the name of
the person individual who is responsible therefor paying
for such

748                           JOURNAL OF THE HOUSE

matter; and (3) the city and state of residence of such individual or the
city and state in which the primary office of such organization is located.
If such matter is paid for and authorized by a candidate or such candidate's
candidate committee, such matter need only identify the chairperson or
treasurer authorizing such matter;
  (B)  publishing or causing to be published any brochure, flier, letter,
postcard or other political fact sheet any paid matter which is designed or
tends to aid, injure or defeat any candidate for nomination or election to a
state or local office, unless such matter is followed by: (1) The name of the
chairperson or treasurer of the political or other organization au thorizing
such matter; (2) the name of the individual who is paying for such matter;
and (3) the city and state of residence of such individual or the city and
state in which the primary office of such organization is located.  If such
matter is paid for and authorized by a candidate or such candidate's
candidate committee, such matter need only identify the chairperson or
treasurer sponsoring such matter; or
  or (C)  broadcasting or causing to be broadcast by any radio or
television station any paid matter which is designed or tends to aid, injure
or defeat any candidate for nomination or election to a state or local
office, unless such matter is followed by a statement that the preceding was
an advertisement together with: (1) The name of the chairperson or
treasurer of the political or other organization sponsoring the same or
authorizing such matter; (2) the name of the person
individual who is responsible therefor paying for such
matter; and   (3) the city and state of residence of such individual or the
city and state in which the primary office of such organization is located.
If such matter is paid for and authorized by a candidate or such candidate's
candidate committee, such matter need only identify the chairperson or
treasurer authorizing such matter.
  (2)  The provisions of this subsection requiring the disclosure of the
name of an individual shall not apply to individuals making expenditures in
an aggregate amount of less than $100 within a calendar year.
  (2) (3)  Corrupt political advertising of a state or local
office is a class C misdemeanor.
  (c)  It shall be a defense to a prosecution or imposition of a civil
fine under this section if the person accused of violating this section has
secured a written certification from the person authorizing or paying for the
advertising that such person has included the infor mation required by this
section in such advertisement.'';
  By renumbering sections accordingly;
  On page 6, in line 32, before ``45-220'' by inserting ``25-4156,'';
  In the title, in line 16, following the semicolon, by inserting ``relating
to certain publications;''; in line 17, before ``45-220'' by inserting
``25-4156,'';
  Also, on motion of Rep. Welshimer to amend SB 116, the motion did not
prevail.
  Also, roll call was demanded on motion to recommend the bill favorably for
passage.
  On roll call, the vote was: Yeas 111; Nays 10; Present but not voting 1;
Absent or not voting 3.
  Yeas: Adkins, Alldritt, Ballard, Ballou, Beggs, Benlon, Boston, Bradley,
Burroughs, Camp bell, Compton, Correll, Cox, Crow, Dahl, Dillon, Dreher,
Edmonds, Empson, Faber, Far mer, Feuerborn, Findley, Flaharty, Flora, Flower,
Franklin, Freeborn, Garner, Geringer, Gilbert, Gilmore, Glasscock, Grant,
Gregory, Haley, Hayzlett, Henry, Holmes, Horst, How ell, Huff, Humerickhouse,
Hutchins, Johnson, Johnston, Kirk, Klein, Phill Kline, Krehbiel, Kuether,
Landwehr, Lane, Larkin, J. Long, P. Long, Mason, Mayans, Mays, McClure,
McCreary, McKechnie, McKinney, Mollenkamp, Morrison, Myers, Nichols, O'Neal,
Os borne, Packer, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff,
Powell, Powers, Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer,
Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan,
Spangler, Stone, Storm, Swenson, Tanner, Thi mesch, Toelkes, Tomlinson,
Toplikar, Vickrey, Vining, Wagle, Weiland, Wells, Welshimer, Wempe, Wilk,
Wilson.
  Nays: Aurand, Henderson, Jennison, Kejr, Phil Kline, Lloyd, Minor, Neufeld,
O'Connor, Weber.
  Present but not voting: Carmody.
  Absent or not voting: Allen, Dean, Helgerson.
  The motion prevailed and SB 116 be passed as amended.

                                 April 2, 1997                              749


REPORTS OF STANDING COMMITTEES

  The Committee on Appropriations recommends HB 2390 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 Appropriations recommends HB 2497 be amended
on page 6, following line 30, by inserting:
  ``New Sec. 9.  (a) The Kansas commission on veterans' affairs may enter
into a written contract with any individual who is eligible for admission to
the Kansas soldiers' home under K.S.A. 76-1908, and amendments thereto, to
authorize the construction of a single-family dwelling for use as a home for
such individual and such individual's family members on the real property of
the Kansas soldiers' home in accordance with rules and regulations adopted by
the Kansas commission on veterans affairs under this section. Each such
dwelling shall be constructed and maintained (1) at the expense of the
individual entering into a contract with the commission under this section,
including any required sewer, water and utility connections, (2) at a
location on the real property of the Kansas soldiers' home approved in
accordance with rules and regulations adopted by the commission under this
section, and   (3) in accordance with the building design, construction and
materials standards as author ized or prescribed by rules and regulations
adopted by the commission under this section.
  (b) The Kansas commission on veterans affairs shall grant a life estate to
each individual who enters into a contract under this section and who
constructs a dwelling at the Kansas soldiers' home in accordance with this
section and the rules and regulations adopted by the commission under this
section. The life estate shall be for the dwelling and the tract of real
property that the dwelling is constructed on, as specified in the contract
entered into under this section, for the life of the individual and the lives
of such individual's family members who are residing in the dwelling. Each
life estate granted by the commission under this section shall be approved as
to form and legality by the attorney general.
  (c) At the end of each life estate granted under this section, the dwelling
and real estate which is the subject of the life estate shall revert to the
Kansas soldiers' home and such dwelling and real estate shall be used for
housing of veterans and other eligible individuals admitted to the Kansas
soldiers' home as provided by statute.
  (d) The Kansas commission on veterans affairs shall adopt rules and
regulations prescrib ing policies and procedures for the construction and
maintenance of single-family dwellings on the real estate of Kansas soldiers'
home, prescribing building design, construction and materials standards for
such dwellings, and for such other matters as may be required for the
implementation and administration of this section. No rule and regulation
shall be adopted by the Kansas commission on veterans affairs under this
subsection unless the Kansas commission on veterans affairs first has advised
and consulted with the joint com mittee on state building construction and
has presented such proposed rule and regulation to the joint committee on
state building construction.
  (e) As used in this section, ``family members'' includes the spouse of an
individual who has entered into a contract under this section, the widow or
widower of an individual who has entered into a contract under this section,
and the mother, father or minor child of an individual who has entered into a
contract under this section, if such mother, father or minor child is
incapable of self-support because of physical disability.'';
  And by renumbering sections accordingly;
  In the title, in line 12, following the semicolon, by inserting
``authorizing certain contracts for construction of dwellings at the Kansas
soliders' home and prescribing guidelines there for;''; and the bill be
passed as amended.
  The Committee on Appropriations recommends HB 2512 be amended
on page 1, in line 40, by striking ``Based'' and inserting ``The state
librarian shall determine the amount of the grant-in-aid each eligible local
public library is to receive based'';
  On page 2, in line 14, by striking ``and the information contained in''; by
striking all of lines 15 through 17; in line 18 by striking all preceding the
period; in line 22, preceding the colon, by inserting ``, based on the
information contained in the official annual budgets of municipalities that
are filed with the division of accounts and reports in accordance with K.S.A.
79-2930, and amendments thereto''; and the bill be passed as amended.

750                           JOURNAL OF THE HOUSE

  The Committee on Judiciary recommends SB 292, as amended by
Senate Committee of the Whole, be amended on page 1, in line 34, before
``law'' by inserting ``Kansas''; in line 36, by striking ``to assist in
the''; in line 37, by striking ``enforcement of all laws of the state as
provided in sub-''; in line 38, by striking all before the period;
  On page 2, in line 1, before ``law'' by inserting ``Kansas''; by striking
all in lines 36 through 39;
  On page 3, in line 1, before ``law'' by inserting ``Kansas''; in line 3, by
striking all before the comma where it first appears and inserting ``pursuant
to the authority granted in sub section (b) of K.S.A. 32-808, and amendments
thereto''; in line 7, after ``state'' by inserting a comma; also in line 7,
by striking ``thereunder''; also in line 7, by striking ``the''; in line 8,
by striking ``authority granted in K.S.A. 32-808'' and inserting ``chapter 32
of the Kansas Statutes Annotated,''; by striking all in lines 12 through 43;
  By striking all of pages 4 and 5;
  On page 6, by striking all in lines 1 through 4;
  And by renumbering sections accordingly;
  Also on page 6, in line 5, by striking all after ``32-1048''; in line 6, by
striking ``4952'';
  On page 1, in the title, in line 11, by striking ``retirement;''; also in
line 11, by striking ``and K.S.A.''; in line 12, by striking all before
``and''; and the bill be passed as amended.
  The Committee on Tourism recommends SB 168, as amended by
Senate Committee, be amended by substituting a new bill to be designated as
``House Substitute for Senate Bill No. 168,'' as follows:
``House Substitute for SENATE BILL No. 168
By Committee on Tourism
``AN ACT relating to travel and tourism; establishing a state tourism fund
and a council on tourism; concerning requests for proposals; amending K.S.A.
1996 Supp. 79-4801 and repealing the existing section.''; and the substitute
bill be passed as amended.
  (H. Sub. for SB 168 was thereupon introduced and read by title.)

REPORT ON ENGROSSED BILLS

  HB 2181 reported correctly engrossed April 2, 1997.
  HB 2038, 2137, 2188 reported correctly re-engrossed April 2, 1997.
  On motion of Rep. Jennison, the House adjourned until 9:00 a.m., Thursday,
April 3, 1997.
                                            CHARLENE SWANSON, Journal Clerk.
JANET E. JONES, Chief Clerk.
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