J o u r n a l o f t h e H o u s e SIXTY-FIRST DAY -------- HALL OF THE HOUSE OF REPRESENTATIVES TOPEKA, KAN., Friday, April 11, 1997, 10:00 a.m. The House met pursuant to adjournment with Speaker Shallenburger in the chair. The roll was called with 123 members present. Rep. Dean was excused on verified illness. Rep. Tomlinson was excused on excused absence by the Speaker. Present later: Rep. Tomlinson. Prayer by guest chaplain, the Rev. Tim Waggoner, pastor, Knox United Presbyterian Church, Overland Park, and guest of Rep. Ray: Almighty God, we are gathered together in this particular place on this particular morning to make particular decisions which affect so many people. We come from different places and backgrounds. Some from rural communities, others from cities. We have different family situations, and most of all, a diversity of views of what is right for those who reside in the state of Kansas. And yet, with all the differences, with all the diversity of views, these men and women come to this place eager for the work ahead. Almighty God, I ask you to be with all who are here this morning, in order that the tremendous burden of responsibility which has been laid upon their shoulders would not be too great to bear. Where there are differences, may you give them the power of patience, wisdom and respect to deal with each other in a loving and caring way even in the midst of disagreement. May common ground be the order of the day to be an example to the rest of the world as to what is right, what is decent, and what is acceptable. We are reminded that other governing bodies of our nation are meeting today, may you be with all who seek to make right decisions today, and may all be guided by your spirit. Thank you for this nation, thank you for this state, thank you for all who are here this morning. In your name we pray. Amen. MESSAGE FROM THE GOVERNOR HB 2038, 2045, 2127, 2137, 2150, 2181, 2188, 2202, 2223, 2298, 2498 approved on April 10, 1997. MESSAGE FROM THE SENATE The Senate nonconcurs in House amendments to SB 234, requests a conference and has appointed Senators Oleen, Harrington and Jones as conferees on the part of the Senate. INTRODUCTION OF ORIGINAL MOTIONS On motion of Rep. Jennison, the House acceded to the request of the Senate for a conference on SB 234. Speaker Shallenburger thereupon appointed Reps. Carmody, Phill Kline and Garner as conferees on the part of the House. CONFERENCE COMMITTEE REPORT Mr. President and Mr. Speaker: Your committee on conference on House amend ments to SB 63, submits the following report: April 11, 1997 835 The Senate accedes to all House amendments to the bill, and your committee on con ference further agrees to amend the bill, as printed with House Committee amendments, as follows: On page 3, in line 43, by striking ``guidelines of'' and inserting in lieu thereof ``regulations promulgated by''; On page 4, in line 1, after ``safety'' by inserting ``and''; also in line 1, before the period, by inserting ``, as in effect on July 1, 1997''; On page 1, in the title, in line 12, after ``livestock'' by inserting a semicolon; And your committee on conference recommends the adoption of this report. Joann Flower John Ballou Galen Weiland Conferees on part of House Stephen R. Morris Dwayne Umbarger Gerald L. Karr Conferees on part of Senate On motion of Rep. Flower, the conference committee report on SB 63 was adopted. On roll call, the vote was: Yeas 115; Nays 8; Present but not voting 0; Absent or not voting 2. Yeas: Adkins, Alldritt, Allen, Ballard, Ballou, Beggs, Benlon, Boston, Bradley, Burroughs, Campbell, Carmody, Compton, Correll, Cox, Crow, Dahl, Dillon, Dreher, Edmonds, Emp son, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Garner, Ger inger, Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett, Helgerson, Henderson, Henry, Holmes, Horst, Huff, Humerickhouse, Hutchins, Jennison, Johnson, Johnston, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Lane, Larkin, J. Long, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKinney, Minor, Mollenkamp, Morri son, Myers, Neufeld, Nichols, O'Connor, O'Neal, Osborne, Packer, Palmer, Pauls, E. Pe terson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Toplikar, Vickrey, Vining, Wagle, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson. Nays: Aurand, Freeborn, Howell, Kejr, Landwehr, Lloyd, Shore, Weber. Present but not voting: None. Absent or not voting: Dean, Tomlinson. CONFERENCE COMMITTEE REPORT Mr. President and Mr. Speaker: Your committee on conference on House amend ments to SB 229, submits the following report: The Senate accedes to all House amendments to the bill, and your committee on con ference further agrees to amend the bill, as printed with House Committee of the Whole amendments, as follows: On page 7, in line 17, by striking all after the period; by striking lines 18 to 28, inclusive; And your committee on conference recommends the adoption of this report. Nancy A. Kirk Tom Bradley Dennis M. Wilson Conferees on part of House Don Steffes Sandy Praeger Paul Feleciano, Jr. Conferees on part of Senate On motion of Rep. Bradley, the conference committee report on SB 229 was adopted. 836 JOURNAL OF THE HOUSE On roll call, the vote was: Yeas 123; Nays 0; Present but not voting 0; Absent or not voting 2. 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, Phelps, Pot torff, Powell, Powers, Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson. Nays: None. Present but not voting: None. Absent or not voting: Dean, Tomlinson. CONFERENCE COMMITTEE REPORT Mr. President and Mr. Speaker: Your committee on conference on Senate amend ments to HB 2071, submits the following report: The House accedes to all the Senate amendments to the bill, and your committee on conference further agrees to amend the bill, as printed with Senate Committee amend ments, as follows: On page 6, following line 20, by inserting a section as follows: ``Sec. 3. K.S.A. 40-414 is hereby amended to read as follows: 40-414. (a) If a life in surance company or fraternal benefit society issues any policy of insurance, including a contract of annuity, or beneficiary certificates upon the life of an individual and payable at the death of the insured, or in any given number of years, to any person or persons having an insurable interest in the life of the insured, the policy and its reserves, or their present value, shall inure to the sole and separate use and benefit of the beneficiaries named in the policy and shall be free from: (1) The claims of the insured or the insured's creditors and representatives; (2) the claims of any policyholder or the policyholder's creditors and representatives, subject to the provisions of subsection (b); (3) all taxes, subject to the provisions of subsection (d); and (4) the claims and judgments of the creditors and representatives of any person named as beneficiary in the policy of insurance. (b) The nonforfeiture value of a life insurance or annuity policy shall not be exempt from: (1) Claims of the creditors of a policyholder who files a bankruptcy petition under 11 U.S.C. (section) 101 et seq. on or within one year after the date the life insurance policy is issued on or within three years after the date the annuity policy is issued; or (2) the claim of any creditor of a policyholder if execution on judgment for the claim is issued on or within one year after the date that the life insurance policy is issued or on or within three years after the date the annuity policy is issued. (c) Nothing in this section shall be construed as restricting the right of the insured to change the beneficiary if the policy reserves that right to the insured. (d) Nothing in this section shall be construed as exempting from taxation any real estate which may at any time be carried by any life insurance company as a part of its legal reserve. (e) The provisions of subsection (b) shall apply only to life insurance or annuity policies purchased on or after July 1, 1988. (f) The provisions of subsection (b) shall not apply to that portion of the nonforfeiture value of a life insurance policy, issued on or within one year of the filing of a bankruptcy petition under 11 U.S.C. (section) 101 et seq. or an execution on judgment for the claim of the April 11, 1997 837 creditor, which is derived from the surrender of a life insurance policy issued more than one year prior to such bankruptcy petition or such execution. (g) The provisions of subsection (b) shall not apply to that portion of the nonforfeiture value of an annuity policy, issued on or within three years of the filing of a bankruptcy petition under 11 U.S.C. &101 et seq. or an execution on judgment for the claim of the creditor, which is derived from the surrender of an annuity policy issued more than three years prior to such bankruptcy petition or such execution.''; And by renumbering the remaining sections accordingly; Also on page 6, in line 21, before ``40-241i'' by inserting ``40-112, as amended by section 2 of 1997 House Bill No. 2104,''; also in line 21, after ``40-241i'', by inserting ``, 40-2,125, as amended by section 6 of 1997 House Bill 2104, and 40-414''; In the title, in line 12, after ``insurance'' by inserting a semicolon; in line 15, after ``241i'' by inserting ``and 40-414''; in line 15, after ``sections'' by inserting ``; also repealing 40-112, as amended by section 2 of 1997 House Bill No. 2104, and 40-2,125, as amended by section 6 of 1997 House Bill No. 2104''; And your committee on conference recommends the adoption of this report. Don Steffes Sandy Praeger Paul Feleciano, Jr. Conferees on part of Senate Nancy A. Kirk Dennis M. Wilson Tom Bradley Conferees on part of House On motion of Rep. Bradley to adopt the conference committee report on HB 2071, Rep. Carmody offered a substitute motion to not adopt the conference committee report and asked that a new conference committee be appointed. The substitute motion prevailed. Speaker Shallenburger thereupon appointed Reps. Bradley, Wilson and Kirk as third conferees on the part of the House. MOTIONS TO CONCUR AND NONCONCUR On motion of Rep. Bradley, the House concurred in Senate amendments to Sub. HB 2081, An act relating to insurance; rate making and rating organizations; advisory organi zations; rate administration and statistical plans; rebating of premium; repealing K.S.A. 40925, 40-926, 40-927, 40-928, 40-928a, 40-929, 40-930, 40-931, 40-932, 40-933, 40-934, 40935, 40-936, 40-937, 40-939, 40-940, 40-941, 40-942, 40-943, 40-944, 40-945, 40-1111, 40-1111a, 40- 1112, 40-1113, 40-1113a, 40-1113c, 40-1114, 40-1114a, 40-1115, 40-1116, 40-1117, 40-1118, 40-1121, 40-1122, 40-1123, 40-1124 and 40-1125. (The House requested the Senate to return the bill, which was in conference). On roll call, the vote was: Yeas 124; Nays 0; Present but not voting 0; Absent or not voting 1. 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, Phelps, Pot torff, Powell, Powers, Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson. Nays: None. Present but not voting: None. 838 JOURNAL OF THE HOUSE Absent or not voting: Dean. On motion of Rep. Glasscock, the House concurred in Senate amendments to HB 2490, An act concerning the practice of geology; providing for licensure and regulation as a tech nical profession; amending K.S.A. 74-7005 and 74-7006 and K.S.A. 1996 Supp. 74-7003 and 74-7013 and repealing the existing sections, by Committee on Federal and State Affairs. (The House requested the Senate to return the bill, which was in conference). On roll call, the vote was: Yeas 84; Nays 40; Present but not voting 0; Absent or not voting 1. Yeas: Adkins, Alldritt, Allen, Ballard, Beggs, Benlon, Bradley, Burroughs, Campbell, Car mody, Compton, Cox, Crow, Dahl, Dillon, Dreher, Edmonds, Empson, Farmer, Findley, Flaharty, Flower, Franklin, Geringer, Gilmore, Glasscock, Gregory, Helgerson, Henderson, Holmes, Horst, Huff, Humerickhouse, Hutchins, Johnson, Kirk, Klein, Phil Kline, Kuether, Landwehr, Lane, J. Long, Mason, Mayans, Mays, McClure, McCreary, Minor, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Osborne, Palmer, Pauls, J. Peterson, Phelps, Pottorff, Powell, Powers, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sharp, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Tanner, Toelkes, Tomlinson, Toplikar, Vin ing, Wagle, Wempe, Wilk, Wilson. Nays: Aurand, Ballou, Boston, Correll, Faber, Feuerborn, Flora, Freeborn, Garner, Gil bert, Grant, Haley, Hayzlett, Henry, Howell, Jennison, Johnston, Kejr, Phill Kline, Krehbiel, Larkin, Lloyd, P. Long, McKechnie, McKinney, Mollenkamp, Packer, E. Peterson, Presta, Sawyer, Schwartz, Shallenburger, Shore, Swenson, Thimesch, Vickrey, Weber, Weiland, Wells, Welshimer. Present but not voting: None. Absent or not voting: Dean. MOTIONS AND RESOLUTIONS OFFERED ON A PREVIOUS DAY On motion of Rep. Jennison, SCR 1614, A concurrent resolution relating to the adjourn ment of the senate and house of representatives for a period during the 1997 regular session of the legislature, was adopted. REPORT OF STANDING COMMITTEE Your Committee on Calendar and Printing recommends on requests for resolutions and certificates that Request No. 103, by Representative Thimesch, congratulating members of the Goddard High School Band, in recognition of their participation in the 1996 National Holiday Bowl Festival Events; Request No. 104, by Representative Schwartz, congratulating Elizabeth Graham, second runner-up in the 1997 Junior Miss Contest; Request No. 105, by Representatives Ballard, Findley and Sloan, recognizing the Uni versity of Kansas Men's Basketball Team for their many memorable achievements during the 1996-97 basketball season; Request No. 106, by Representative Toelkes, commending Zane Samuel Hoffman on achieving the Eagle Scout Award; Request No. 107, by Representative Shallenburger and 124 others, a resolution in honor of Richard Ryan; Request No. 108, by Representative Horst, congratulating Benjamin Nathaniel Holston for achieving the Eagle Scout Award; Request No. 109, by Representative Freeborn, congratulating Mark Lobaugh for his selection to the Kansas Teacher Hall of Fame; Request No. 110, by Representative Grant, congratulating Buckley York, Crawford County's Top Speller; Request No. 111, by Representative Schwartz, congratulating Amos and Joyce Blecha, Kansas Master Farmer and Homemaker; Request No. 112, by Representative Weber, congratulating Martha House in honor of being recognized as a Master Teacher for 1997; Request No. 113, by Representative Weber, congratulating Jason Porter on achieving the Eagle Scout Award; April 11, 1997 839 Request No. 114, by Representative Weber, congratulating Dr. Michael L. Whitehair, 1996 Kansas Veterinarian of the Year; Request No. 115, by Representative P. Long, commending Trenton Coe for being named an All-American Scholar by the United States Achievement Academy; Request No. 116, by Representative P. Long, commending Tracy Coe for being named a United States National Award Winner in History and Government and an All-American Scholar; Request No. 117, by Representative P. Long, commending Lyle Hawthorne for being named a United States National Award winner in Foreign Language; Request No. 118, by Representative Johnson, commending the City of Russell for re ceiving a 1997 Community Achievement Award; Request No. 119, by Representative Shallenburger, commending Paul Buckner for 50 years of service to the Baxter Springs Fire Department; Request No. 120, by Representative Adkins, commending Marcia Rinehart, in recog nition of distinguished service as Mayor of the City of Leawood; Request No. 121, by Representative Adkins, commending Doug Patterson, in recogni tion of outstanding service as a member of the Leawood City Council; be approved and the Chief Clerk of the House be directed to order the printing of said certificates and order drafting of said resolutions. On motion of Rep. Jennison, the committee report was adopted. 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. Reps. Lloyd and O'Neal were excused later on excused absence by the Speaker. Present later: Rep. Lloyd. INTRODUCTION OF BILLS AND CONCURRENT RESOLUTIONS The following bill was introduced and read by title: HB 2575, An act relating to state officers and employees; establishing a short term dis ability program; authorizing payroll deductions therefor, by Committee on Appropriations. MESSAGE FROM THE SENATE Announcing adoption of SCR 1613. Announcing passage of HB 2497. The Senate adopts conference committee report on SB 145. The Senate adopts conference committee report on SB 165. The Senate adopts conference committee report on HB 2064. The Senate not adopts the conference committee report on SB 146, requests a new conference committee be appointed, and has appointed Senators Hardenburger, Becker and Gooch as second conferees on the part of the Senate. Announcing rejection of HB 2307. Announcing rejection of Sub. HB 2331. INTRODUCTION OF SENATE BILLS AND CONCURRENT RESOLUTIONS The following Senate concurrent resolution was thereupon introduced and read by title: SCR 1613. INTRODUCTION OF ORIGINAL MOTIONS On motion of Rep. Jennison, the House acceded to the request of the Senate for a conference on SB 146. Speaker pro tem Wagle thereupon appointed Reps. Flower, Ballou and Weiland as second conferees on the part of the House. 840 JOURNAL OF THE HOUSE CONFERENCE COMMITTEE REPORT Mr. President and Mr. Speaker: Your committee on conference on House amend ments to Substitute for SB 86, submits the following report: The House recedes from all of the House amendments to the bill, and your committee on conference further agrees to amend the bill, as printed as Substitute for Senate Bill No. 86, as follows: On page 13, in line 17, by striking ``(j) of K.S.A. 75-4201, and amendments thereto'' and inserting ``(f)''; in line 26, by striking ``(j) of K.S.A. 75-''; in line 27, by striking ``4201, and amendments thereto'' and inserting ``(f)''; On page 14, in line 36, by striking ``(j) of K.S.A. 75-4201, and''; in line 37, by striking ``amendments thereto'' and inserting ``(f)''; On page 15, in line 1, by striking ``(j) of K.S.A. 75-''; in line 2, by striking ``4201, and amendments thereto'' and inserting ``(f)''; in line 12, by striking ``(j) of K.S.A. 75-4201, and amendments''; in line 13, by striking ``thereto'' and inserting ``(f)''; following line 19, by inserting the following: ``(f) As used in this section, ``investment rate'' means a rate which is the equivalent yield for United States government securities having a maturity date as published in the Wall Street Journal, nearest the maturity date for equivalent maturities. The 0-90 day rate shall be computed on the average effective federal funds rate as published by the federal reserve system for the previous week.''; On page 18, following line 25, by inserting the following: ``Sec. 14. K.S.A. 1996 Supp. 12-1677d is hereby amended to read as follows: 12-1677d. (a) As used in this act: (1) ``Municipality'' means any city, county or other political or taxing subdivision of the state. (2) ``Foundation'' means any not for profit charitable or eleemosynary corporation es tablished by a municipality which is exempt from taxation pursuant to section 501(c)(3) of the internal revenue code and which has been in existence at least 15 years. Any such foundation is hereby deemed to be a public body. (b) The board of directors of any foundation shall invest the funds held by such foun dation which are not required immediately for the purposes of the foundation in the manner provided by this section: (1) Any funds in an amount equal to 110% of the average annual expenses of the foun dation for the next preceding five years may be invested in the manner provided by K.S.A. 12-1675, and amendments thereto. If funds in the amount required by this paragraph are available from the municipality which established the foundation, the foundation may invest all of its funds in the manner provided in paragraph (2). (2) Any funds exceeding the amount described in paragraph (1) may be invested in such investments that may be lawful for fiduciaries in this state and also may be invested in such investments as would be lawful for a private corporation or other foundation having purposes similar to the foundation. No moneys derived pursuant to any tax may be invested under this paragraph. (c) Nothing in this act shall effect the status of the foundation as a municipal entity. (d) The provisions of this section shall apply to foundations whether created before or after the effective date of this act. Any investment of funds by a foundation prior to July 1, 1997, which would have complied with the provisions of this section, as amended by this act, are hereby validated.''; And by renumbering sections accordingly; On page 19, following line 7, by inserting the following: ``Sec. 16. K.S.A. 68-2060 is hereby amended to read as follows: 68-2060. All moneys received pursuant to the authority of this act, whether as proceeds from the sale of bonds or as revenues or otherwise, shall be deemed to be trust funds to be held and applied solely as provided in this act. Any officer with whom, or any bank or trust company with which, such moneys shall be deposited shall act as trustee of such moneys and shall hold and apply the same for the purposes hereof, subject to such regulations as this act and the resolution authorizing the bonds or the trust agreement securing such bonds may provide. Trust funds April 11, 1997 841 received pursuant to this act may be invested as determined by the authority with banks authorized to do business in Kansas at rates of interest not less than the investment rate, as defined in subsection (1) of K.S.A. 75-4201 (f) of K.S.A. 12-1675, and amendments thereto or in direct obligations of the United States or in obligations that are fully guaranteed as to principal and interest by the United States.''; And by renumbering sections accordingly; Also on page 19, by striking all of lines 26 through 36; in line 37, by striking ``(k)'' and inserting ``(i)''; in line 40, by striking ``(l)'' and inserting ``(j)''; On page 20, in line 1, by striking ``(m)'' and inserting ``(k)''; On page 21, in line 16, by striking ``(n)'' and inserting ``(l)''; in line 22, by striking ``(o)'' and inserting ``(m)''; in line 29, by striking ``(p)'' and inserting ``(n)''; in line 31, by striking ``(q)'' and inserting ``(o)''; in line 34, by striking ``(r)'' and inserting ``(p)''; in line 36, by striking ``(s)'' and inserting ``(q)''; in line 39, by striking ``(t)'' and inserting ``(r)''; On page 22, in line 1, by striking ``(u)'' and inserting ``(s)''; following line 4, by inserting the following: ``Sec. 18. K.S.A. 1996 Supp. 75-4208 is hereby amended to read as follows: 75-4208. The board shall follow the procedure prescribed in rules and regulations adopted under the provisions of K.S.A. 1996 Supp. 75-4232, in designating banks to receive deposit of state moneys in operating accounts and investment accounts. The board shall determine which banks shall receive state operating and investment accounts and shall designate the types of accounts to be awarded each such bank and the initial amount of each award. Such initial awards which are operating accounts shall be made as provided in K.S.A. 75-4205, and amendments thereto. Such initial awards which are investment accounts shall be appor tioned awarded as is provided in K.S.A. 75-4209, and amendments thereto. Upon making the awards provided for above, the board shall notify each bank of its award, and that the same is subject to approval of securities to be pledged as prescribed in this act. Sec. 19. K.S.A. 1996 Supp. 75-4209 is hereby amended to read as follows: 75-4209. (a) After the director of investments determines the liquidity needs for the state, and determines the varying maturities of the investment accounts to be offered and the amount of state moneys to be invested in each of the maturities offered, in accordance with rules and regulations adopted pursuant to K.S.A. 1996 Supp. 75-4232, and amendments thereto, the director of investments shall make available state moneys eligible for investment accounts in the following manner: (1) (A) The director of investments shall offer to qualified banks, on a competitive bid basis, state moneys for deposit in investment accounts at maturities of not more than four years and such bids shall be at a rate of at least the market rate, as defined in subsection (k) of K.S.A. 75-4201, and amendments thereto. (B) As part of the offering under subparagraph (A) the director of investments shall offer to qualified banks, on a twelve-month average, 50% of the amount of state moneys available for investment or $350,000,000, whichever amount is greater, at maturities of not more than four years and at the investment rate as defined in subsection (l) of K.S.A. 754201, and amendments thereto. Such accounts shall be apportioned by the director of in vestments among the banks which propose to receive such accounts and which qualify therefor on the basis of the ratio of each bank's combined capital, undivided profits and surplus to the total capital, undivided profits and surplus of all such banks. (C) Qualified banks shall be determined in accordance with requirements established by rules and regulations adopted pursuant to K.S.A. 1996 Supp. 75-4232, and amendments thereto. (2) The director of investments may invest and reinvest state moneys eligible for in vestment which are not invested in accordance with paragraph (1) section 26, in the following investments: (A) (1) Direct obligations of, or obligations that are insured as to principal and interest by, the United States of America or any agency thereof and obligations and securities of the United States sponsored enterprises which under federal law may be accepted as security for public funds, on and after the effective date of this act moneys available for investment under this subsection shall not be invested in mortgage-backed securities of such enterprises 842 JOURNAL OF THE HOUSE and of the government national mortgage association, except that any such mortgage-backed securities held prior to the effective date of this act may be held to maturity; (B) (2) repurchase agreements with a Kansas bank or a primary government securities dealer which reports to the market reports division of the federal reserve bank of New York for direct obligations of, or obligations that are insured as to principal and interest by, the United States government or any agency thereof and obligations and securities of United States government sponsored enterprises which under federal law may be accepted as se curity for public funds; (C) investments in SKILL act projects and bonds pursuant to K.S.A. 1996 Supp. 748920, and amendments thereto, and investments in any state agency bonds or bond project; (D) until July 1, 1996, in the municipal investment pool fund, created under K.S.A. 1996 Supp. 12-1677a, and amendments thereto, in accordance with the policies adopted by the board on January 30, 1995. Any investment of such state moneys in such fund prior to the effective date of this act are hereby authorized, confirmed and validated. On July 1, 1996, all state moneys invested in the municipal investment pool fund under this paragraph shall be removed from such fund; or (E) (3) commercial paper that does not exceed 270 days to maturity and which has received one of the two highest commercial paper credit ratings by a nationally recognized investment rating firm. (b) At any time moneys are available for deposits or investments for a period of time which is insufficient to permit deposit in investment accounts or to provide for the liquidity needs for the state, the director of investments may invest such moneys in repurchase agreements as authorized in subparagraph (B) of paragraph (2) of subsection (a) When moneys are available for deposit or investments, the director of investments may invest in SKILL act projects and bonds pursuant to K.S.A. 1996 Supp. 74-8920, and amendments thereto, and in state agency bonds and bond projects. (c) When moneys are available for deposits or investments, the director of investments may invest in preferred stock of Kansas venture capital, inc., under terms and conditions prescribed by K.S.A. 74-8203, and amendments thereto, but such investments shall not in the aggregate exceed a total amount of $10,000,000. (d) When moneys are available for deposits or investments, the director of investments may invest in loans pursuant to legislative mandates, except that not more than the lesser of 10% or $80,000,000 of the state moneys shall be invested. (e) Interest on investment accounts in banks is to be paid at maturity, but not less than annually. (f) Investments made by the director of investments under the provisions of this section shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. (g) Investments under subsection (a) or (b) of this section or under section 26 shall be for a period not to exceed four years. (h) Investments in securities under subparagraph (A) of paragraph (2) paragraph (1) of subsection (a) shall be limited to securities which do not have any more interest rate risk than do direct United States government obligations of similar maturities. For purposes of this subsection, ``interest rate risk'' means market value changes due to changes in current interest rates. (i) On and after July 1, 1996, The director of investments shall not invest state moneys eligible for investment under paragraph (2) of subsection (a), in the municipal investment pool fund, created under K.S.A. 1996 Supp. 12-1677a, and amendments thereto. (j) The director of investments shall not invest moneys in the pooled money investment portfolio in derivatives. As used in this subsection, ``derivatives'' means a financial contract whose value depends on the value of an underlying asset or index of asset values. (k) Moneys and investments in the pooled money investment portfolio shall be invested and reinvested by the director of investments in accordance with investment policies de veloped, approved, published and updated on an annual basis by the board. Such investment policies shall include at a minimum guidelines which identify credit standards, eligible in April 11, 1997 843 struments, allowable maturity ranges, methods for valuing the portfolio, calculating earnings and yields and limits on portfolio concentration for each type of investment. Any changes in such investment policies shall be approved by the pooled money investment board. Such investment policies may specify the contents of reports, methods of crediting funds and accounts and other operating procedures. (l) The board shall adopt rules and regulations to establish an overall percentage limi tation on the investment of moneys in investments authorized under subparagraph (E) of paragraph (2) paragraph (3) of subsection (a), and within such authorized investment, the board shall establish a percentage limitation on the investment in any single business entity. Sec. 20. K.S.A. 1996 Supp. 75-4210 is hereby amended to read as follows: 75-4210. The director of investments shall calculate the investment rate, as defined in subsection (l) of K.S.A. 75-4201 subsection (f) of K.S.A. 12-1675, and amendments thereto, on Monday of each week and publish such rate that week in the Kansas register. The director of in vestments shall also calculate the market rate as defined in subsection (k) of K.S.A. 75-4201 and amendments thereto on the day before the offering of moneys to Kansas banks. Sec. 21. K.S.A. 1996 Supp. 75-4212a is hereby amended to read as follows: 75-4212a. Whenever the balance in operating accounts is insufficient to meet the state's obligations or withdrawals from the municipal investment pool fund, and there are state moneys in authorized investments, the director of investments, with approval of the board, may: (a) Borrow upon the security of any one or more investment accounts an amount suf ficient to meet the state's or the municipal investment pool fund's obligations. Any such loan shall be repaid in full within 60 days or prior to July 1, whichever occurs first. Interest payment by the state for any loan under this section shall be made only by way of setoff from interest obligations to the state from the bank making such loan. The amount borrowed under this section from any bank, shall never exceed an amount equal to the amount of state moneys on deposit in such bank; or (b) enter into reverse repurchase agreements utilizing securities purchased by the board pursuant to subsection (a)(2)(A) of K.S.A. 75-4209, and amendments thereto. Such reverse repurchase agreements may be entered into with Kansas banks or primary government securities dealers which report to the market reports division of the federal reserve bank of New York. Expenses of reverse repurchase agreements shall be paid by deducting such expenses against other interest income to the state.''; And by renumbering sections accordingly; On page 25, following line 32, by inserting the following: ``Sec. 25. K.S.A. 1996 Supp. 75-4263 is hereby amended to read as follows: 75-4263. (a) Except as provided in subsection (b), moneys of a state agency or public instrumentality of this state which may be invested by the director of investments in accordance with in vestment policies established by the pooled money investment board under K.S.A. 75-4232, and amendments thereto, expressly for such agency or instrumentality, or invested directly by the agency or instrumentality, may be invested in the municipal investment pool fund established in K.S.A. 1996 Supp. 12-1677a and amendments thereto. Such agency or in strumentality shall be treated as a municipality for purposes of participation in such fund. (b) On and after July 1, 1996, state moneys eligible for investment under paragraph (2) of subsection (a) of K.S.A. 75-4209, and amendments thereto, shall not be invested in the municipal investment pool fund. New Sec. 26. (a) The director of investments shall accept requests from banks inter ested in obtaining investment accounts of state moneys. Such requests may be submitted any business day and shall specify the dollar amount, maturity or maturity range and interest rate. If the interest rate bid by the bank is at or greater than the market rate determined by the director of investments in accordance with subsection (b), the director of investments is authorized to award the investment account to the bidding bank at the market rate. Awards of investment accounts pursuant to this section shall be subject to investment policies of the pooled money investment board. When multiple bids are received and are in excess of the amount available for investment that day for any maturity, awards shall be made available in ascending order from smallest to largest dollar amount bid, subject to investment policies of the board. 844 JOURNAL OF THE HOUSE (b) The market rate shall be determined each business day by the director of invest ments, in accordance with any procedures established by the pooled money investment board. Subject to any policies of the board, the market rate shall reflect the highest rate at which state moneys can be invested on the open market in investments authorized by sub section (a) of K.S.A. 75-4209 and amendments thereto for equivalent maturities. New Sec. 27. Notwithstanding any other provisions of law, any bank, savings and loan association or savings bank, as defined in section 1, whose most recent community rein vestment act rating with respect to its main office or branches located in Kansas was less than satisfactory, shall be ineligible to receive deposits of, or act as custodian for securities pledged to secure repayment of, public moneys. New Sec. 28. Notwithstanding any other provisions of law, any bank, savings and loan association or savings bank, as defined in section 9, whose most recent community rein vestment act rating with respect to its main office or branches located in Kansas was less than satisfactory, shall be ineligible to receive deposits of, or act as custodian for securities pledged to secure repayment of, public moneys. New Sec. 29. Notwithstanding any other provisions of law, any bank, savings and loan association or savings bank, as defined in K.S.A. 75-4201, and amendments thereto, whose most recent community reinvestment act rating with respect to its main office or branches located in Kansas was less than satisfactory, shall be ineligible to receive deposits of, or act as custodian for securities pledged to secure repayment of, state moneys.''; Also on page 25, in line 33, by striking ``and 17-5002'' and inserting ``, 17-5002 and 682060''; in line 34, following ``12-1677a,'' by inserting ``12-1677d,''; in line 35, following ``754201,'' by inserting ``75-4208, 75-4209, 75-4210, 75-4212a,''; also in line 35, by striking ``and 75-4220'' and inserting ``, 75-4220 and 75-4263''; On page 1, in the title, in line 10, by striking ``and 17-5002'' and inserting ``, 17-5002 and 68-2060''; in line 11, following ``12-1677a,'' by inserting ``12-1677d,''; in line 12, following ``75-4201,'' by inserting ``75-4208, 75-4209, 75-4210, 75-4212a,''; also in line 12, by striking ``and 75-4220'' and inserting ``, 75-4220 and 75-4263''; And your committee on conference recommends the adoption of this report. Ray L. Cox Vernon Correll Conferees on part of House Don Steffes Sandy Praeger Paul Feleciano, Jr. Conferees on part of Senate On motion of Rep. Cox to adopt the conference committee report on Sub. SB 86, Rep. Humerickhouse offered a substitute motion to not adopt the conference committee report and asked that a new conference committee be appointed. Roll call was demanded. On roll call, the vote was: Yeas 61; Nays 58; Present but not voting 0; Absent or not voting 6. Yeas: Alldritt, Ballou, Boston, Burroughs, Compton, Dahl, Dillon, Edmonds, Empson, Faber, Farmer, Feuerborn, Flora, Flower, Freeborn, Garner, Grant, Hayzlett, Henry, Holmes, Howell, Humerickhouse, Hutchins, Jennison, Johnson, Kejr, Landwehr, Larkin, P. Long, Mason, Mayans, McClure, McCreary, McKechnie, McKinney, Minor, Mollenkamp, Morrison, Myers, Neufeld, O'Connor, Osborne, Packer, Palmer, J. Peterson, Powers, Presta, Samuelson, Schwartz, Shallenburger, Shore, Showalter, Swenson, Tanner, Thimesch, Vick rey, Vining, Wagle, Weber, Weiland, Wempe. Nays: Adkins, Allen, Aurand, Ballard, Beggs, Benlon, Campbell, Carmody, Correll, Cox, Crow, Dreher, Findley, Flaharty, Franklin, Geringer, Gilbert, Gilmore, Glasscock, Gregory, Haley, Helgerson, Henderson, Horst, Huff, Johnston, Kirk, Klein, Phil Kline, Phill Kline, Kuether, Lane, J. Long, Mays, Nichols, Pauls, E. Peterson, Phelps, Pottorff, Powell, Ray, Reardon, Reinhardt, Ruff, Sawyer, Sharp, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Toelkes, Tomlinson, Toplikar, Wells, Welshimer, Wilk. April 11, 1997 845 Present but not voting: None. Absent or not voting: Bradley, Dean, Krehbiel, Lloyd, O'Neal, Wilson. The substitute motion prevailed. Speaker pro tem Wagle thereupon appointed Reps. Cox, Humerickhouse and Correll as third conferees on the part of the House. CONFERENCE COMMITTEE REPORT Mr. President and Mr. Speaker: Your committee on conference on House amend ments to SB 7, submits the following report: The Senate accedes to all House amendments to the bill, and your committee on con ference further agrees to amend the bill, as printed with House Committee of the Whole amendments, as follows: On page 32, after line 18, by inserting the following: ``Section 1. K.S.A. 1996 Supp. 79-5028 is hereby amended to read as follows: 79-5028. The provisions of K.S.A. 79-5021 to 79-5036, inclusive, and amendments thereto, shall not apply to or limit the levy of taxes for the payment of: (a) Principal and interest upon state infrastructure loans, bonds, temporary notes, nofund warrants and payments made to a public building commission; (b) judgments, settlements and expenses for protection against liability to the extent such expenses are authorized by article 61 of chapter 75 of the Kansas Statutes Annotated and amendments thereto; (c) employer contributions for social security, workers compensation, unemployment insurance, health care costs, employee benefit plans, and employee retirement and pension programs; (d) expenses incurred by counties for district court operations under the provisions of K.S.A. 20-348 or 20-349, and amendments thereto, and expenses incurred by counties for the detention of juveniles; (e) expenses incurred by counties for payment of out-district tuition to community col leges pursuant to K.S.A. 71-301, and amendments thereto, and expenses incurred by coun ties and townships for payment of out-district tuition to municipal universities pursuant to K.S.A. 13-13a26, and amendments thereto; (f) expenses incurred for the first time on and after January 1, 1996, by cities in effec tuating programs specifically enacted and administered for the purpose of preventing ju venile delinquency and crime; or (g) expenses incurred by any taxing subdivision for rebates to owners of property in connection with a neighborhood revitalization program instituted in accordance with K.S.A. 1995 1996 Supp. 12-17,114 et seq., and amendments thereto; or (h) expenses incurred by any taxing subdivision necessary to interface with the state criminal justice information system. The provisions of K.S.A. 79-5021 to 79-5036, inclusive, and amendments thereto, do not apply to the tax levies authorized or required under K.S.A. 19-4004, 19-4011, 65-212 and 65-215 and amendments thereto. Amounts produced from any taxes levied for purposes specified in this section shall not be used in computing any aggregate limitation under the provisions of this act. In addition, amounts needed to be produced from the levy of taxes by a taxing subdivision to replace the difference between the amount of revenue estimated to be received by such taxing subdivision pursuant to K.S.A. 79-5101 et seq., and amendments thereto, in 1990, and the amount of such revenue estimated to be received by such taxing subdivision in each year thereafter shall not be used in computing any aggregate limitation under the provisions of this act. On or before June 1 of each year, information necessary to make such computation shall be provided to each taxing subdivision by the appropriate county treasurer.''; By renumbering existing sections accordingly; On page 33, in line 1, by striking ``1998'' and inserting ``1999''; in line 9, before ``79-5036'' by inserting ``79-5028,''; In the title, in line 22, before ``79-5036'' by inserting ``79-5028,''; 846 JOURNAL OF THE HOUSE And your committee on conference recommends the adoption of this report. Phill Kline Tony Powell Bruce Larkin Conferees on part of House Audrey Langworthy David R. Corbin Janis K. Lee Conferees on part of Senate On motion of Rep. Phill Kline, the conference committee report on SB 7 was adopted. On roll call, the vote was: Yeas 119; Nays 0; Present but not voting 0; Absent or not voting 6. Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Burroughs, Campbell, Carmody, Compton, Correll, Cox, Crow, Dahl, Dillon, Dreher, Edmonds, Emp son, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Freeborn, Gar ner, Geringer, Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett, Helgerson, Henderson, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, Johnson, Johnston, Kejr, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, J. Long, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKin ney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, Osborne, Packer, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, Ray, Rear don, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showal ter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk. Nays: None. Present but not voting: None. Absent or not voting: Bradley, Dean, Kirk, Lloyd, O'Neal, Wilson. CONFERENCE COMMITTEE REPORT Mr. President and Mr. Speaker: Your committee on conference on House amend ments to SB 147, submits the following report: The Senate accedes to all House amendments to the bill, and your committee on con ference further agrees to amend the bill, as printed with House Committee amendments, as follows: On page 2, by striking all of lines 9 through 12; by renumbering section 5 as section 4; And your committee on conference recommends the adoption of this report. Don Myers Clay Aurand Dennis McKinney Conferees on part of House Pat Ranson Stan Clark Jim Barone Conferees on part of Senate On motion of Rep. Myers, the conference committee report on SB 147 was adopted. On roll call, the vote was: Yeas 119; Nays 0; Present but not voting 0; Absent or not voting 6. Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Burroughs, Campbell, Carmody, Compton, Correll, Cox, Crow, Dahl, Dillon, Dreher, Edmonds, Emp son, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Freeborn, Gar ner, Geringer, Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett, Helgerson, Henderson, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, Johnson, Johnston, Kejr, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, J. Long, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKin April 11, 1997 847 ney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, Osborne, Packer, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, Ray, Rear don, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showal ter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk. Nays: None. Present but not voting: None. Absent or not voting: Bradley, Dean, Kirk, Lloyd, O'Neal, Wilson. CONFERENCE COMMITTEE REPORT Mr. President and Mr. Speaker: Your committee on conference on House amend ments to SB 333, submits the following report: The Senate accedes to all House amendments to the bill, and your committee on con ference further agrees to amend the bill, as printed with House Committee amendments, as follows: On page 1, in line 19, before ``K.S.A.'' by inserting ``On and after July 1, 1997,''; On page 2, in line 30, by striking ``derives no operating revenues from intrastate opera tions'' and inserting ``is under the jurisdiction of the commission and has not filed an annual report with the commission pursuant to K.S.A. 66-123, and amendments thereto, prior to the beginning of the commission's fiscal year''; in line 34, by striking ``, 3/5 of 1% of its'' and inserting ``under the jurisdiction of the commission, 0.6% of the public utility's or common carrier's''; On page 3, in line 7, after ``entity'' by inserting ``, other than a residential or small com mercial ratepayer,''; in line 11, before ``K.S.A.'' by inserting ``On and after July 1, 1997,''; in line 43, by striking ``$400'' and inserting ``$100''; On page 4, in line 18, before ``K.S.A.'' by inserting ``On and after July 1, 1997,''; in line 36, before ``K.S.A.'' by inserting ``On and after July 1, 1997,''; On page 5, after line 23, by inserting: ``Sec. 5. On and after July 1, 1997, K.S.A. 1996 Supp. 66-101d is hereby amended to read as follows: 66-101d. It shall be the duty of the commission, either upon complaint or upon its own initiative, to The commission, upon its own initiative, may investigate all sched ules of rates and rules and regulations of electric public utilities. If after investigation and hearing the commission finds that such rates or rules and regulations are unjust, unreason able, unjustly discriminatory or unduly preferential, the commission shall have the power to establish and order substituted therefor such rates and such rules and regulations as are just and reasonable. If after investigation and hearing it is found that any regulation, measurement, practice, act or service complained of is unjust, unreasonable, unreasonably inefficient or insufficient, unduly preferential, unjustly discriminatory, or otherwise in violation of this act or of the orders of the commission, or if it is found that any service is inadequate or that any reason able service cannot be obtained, the commission shall have the power to substitute therefor such other regulations, measurements, practices, service or acts, and to make such order respecting any such changes in such regulations, measurements, practices, service or acts as are just and reasonable. When, in the judgment of the commission, public necessity and convenience require, the commission shall have the power to establish just and reasonable concentration or other special rates, charges or privileges, but all such rates, charges and privileges shall be open to all users of a like kind of service under similar circumstances and conditions. Hearings shall be conducted in accordance with the provisions of the Kansas administra tive procedure act, unless, in the case of a general investigation, for good cause, the com mission orders otherwise. Sec. 6. On and after July 1, 1997, K.S.A. 1996 Supp. 66-101e is hereby amended to read as follows: 66-101e. Upon a complaint in writing made against any electric public utility governed by this act that any of the rates or rules and regulations of such electric public utility are in any respect unreasonable, unfair, unjust, unjustly discriminatory or unduly preferential, or both, or that any regulation, practice or act whatsoever affecting or relating 848 JOURNAL OF THE HOUSE to any service performed or to be performed by such electric public utility for the public, is in any respect unreasonable, unfair, unjust, unreasonably inefficient or insufficient, un justly discriminatory or unduly preferential, or that any service performed or to be per formed by such electric public utility for the public is unreasonably inadequate, inefficient, unduly insufficient or cannot be obtained, the commission shall may proceed, with or with out notice, to make such investigation as it deems necessary. The commission may, upon its own motion, and without any complaint being made, proceed to make such investigation, but No order changing such rates, rules and regulations, practices or acts complained of shall be made or entered by the commission without a formal public hearing, of which due notice shall be given by the commission to such electric public utility or to such complainant or complainants, if any, in accordance with the provisions of the Kansas administrative procedure act. Any public investigation or hearing which the commission shall have power to make or to hold may be made or held before any one or more commissioners. All investigations, hearings, decisions and orders made by a commis sioner shall be deemed the investigations, hearings, decisions and orders of the commission, when approved by the commission. The commission shall have power to require electric public utilities to make such im provements and do such acts as are or may be required by law to be done by any such electric public utility. Sec. 7. On and after July 1, 1997, K.S.A. 66-1,191 is hereby amended to read as follows: 66-1,191. It shall be the duty of the commission, either upon complaint or upon its own initiative, to The commission, upon its own initiative, may investigate all rates, joint rates, tolls, charges and exactions, classifications or schedules of rates or joint rates and rules and regulations of telecommunications public utilities. If after full hearing and investigation the commission finds that such rates, joint rates, tolls, charges or exactions, classifications or schedules of rates or joint rates or rules and regulations are unjust, unreasonable, unjustly discriminatory or unduly preferential, the commission shall have the power to fix and order substituted therefor such rates, tolls, charges, exactions, classifications or schedules of rates or joint rates and such rules and regulations as are just and reasonable. If upon any investigation it is found that any regulation, measurement, practice, act or service complained of is unjust, unreasonable, unreasonably inefficient or insufficient, un duly preferential, unjustly discriminatory, or otherwise in violation of this act or of the orders of the commission, or if it is found that any service is inadequate or that any reasonable service cannot be obtained, the commission may substitute therefor such other regulations, measurements, practices, service or acts, and make such order respecting any such changes in such regulations, measurements, practices, service or acts as are just and reasonable. When, in the judgment of the commission, public necessity and convenience require, the commission may establish just and reasonable concentration or other special rates, charges or privileges, but all such rates, charges and privileges shall be open to all users of a like kind of service under similar circumstances and conditions. Hearings shall be conducted in accordance with the provisions of the Kansas administrative procedure act, unless, in the case of a general investigation, for good cause, the commission orders otherwise. Sec. 8. On and after July 1, 1997, K.S.A. 1996 Supp. 66-1,192 is hereby amended to read as follows: 66-1,192. (a) Upon a complaint in writing made against any telecommuni cations public utility governed by this act, by any mercantile, agricultural or manufacturing organization or society, or by any body politic or municipal organization, or by any taxpayer, firm, corporation or association, that any of the rates or joint rates, tolls, charges, rules, regulations, classifications or schedules of such telecommunications public utility are in any respect unreasonable, unfair, unjust, unjustly discriminatory or unduly preferential, or both, or that any regulation, practice or act whatsoever affecting or relating to any service per formed or to be performed by such telecommunications public utility for the public, is in any respect unreasonable, unfair, unjust, unreasonably inefficient or insufficient, unjustly discriminatory or unduly preferential, or that any service performed or to be performed by such telecommunications public utility for the public is unreasonably inadequate, inefficient, unduly insufficient or cannot be obtained, the commission shall may proceed, with or with out notice, to make such investigation as it deems necessary. April 11, 1997 849 The commission may, upon its own motion, and without any complaint being made, proceed to make such investigation, but No order changing such rates, joint rates, tolls, charges, rules, regulations and classifications, schedules, practices or acts complained of shall be made or entered by the commission without a formal public hearing in accordance with the provisions of the Kansas administrative procedure act, of which due notice shall be given by the commission to such telecommunications public utility or to such complainant or complainants, if any. Any public investigation or hearing which the commission shall have power to make or to hold may be made or held before any one or more commissioners. All investigations, hearings, decisions and orders made by a commissioner shall be deemed the investigations, hearings, decisions and orders of the commission, when approved by the commission. (b) The commission shall have power to require telecommunications public utilities to make such improvements and do such acts as are or may be required by law to be done by any such telecommunications public utility. Sec. 9. On and after July 1, 1997, K.S.A. 1996 Supp. 66-1,204 is hereby amended to read as follows: 66-1,204. It shall be the duty of the commission, either upon complaint or upon its own initiative, to The commission, upon its own initiative, may investigate all sched ules of rates and rules and regulations of natural gas public utilities. If after investigation and hearing the commission finds that such rates or rules and regulations are unjust, un reasonable, unjustly discriminatory or unduly preferential, the commission shall have the power to establish and order substituted therefor such rates and such rules and regulations as are just and reasonable. If after investigation and hearing it is found that any regulation, measurement, practice, act or service complained of is unjust, unreasonable, unreasonably inefficient or insufficient, unduly preferential, unjustly discriminatory, or otherwise in violation of this act or of the orders of the commission, or if it is found that any service is inadequate or that any reason able service cannot be obtained, the commission may substitute therefor such other regu lations, measurements, practices, service or acts, and make such order respecting any such changes in such regulations, measurements, practices, service or acts as are just and rea sonable. When, in the judgment of the commission, public necessity and convenience re quire, the commission may establish just and reasonable concentration or other special rates, charges or privileges, but all such rates, charges and privileges shall be open to all users of a like kind of service under similar circumstances and conditions. Hearings shall be con ducted in accordance with the provisions of the Kansas administrative procedure act, unless, in the case of a general investigation, for good cause, the commission orders otherwise. Sec. 10. On and after July 1, 1997, K.S.A. 1996 Supp. 66-1,205 is hereby amended to read as follows: 66-1,205. (a) Upon a complaint in writing made against any natural gas public utility governed by this act that any rates or rules and regulations of such natural gas public utility are in any respect unreasonable, unfair, unjust, unjustly discriminatory or unduly preferential, or both, or that any rule and regulation, practice or act whatsoever affecting or relating to any service performed or to be performed by such natural gas public utility for the public, is in any respect unreasonable, unfair, unjust, unreasonably inefficient or insufficient, unjustly discriminatory or unduly preferential, or that any service performed or to be performed by such natural gas public utility for the public is unreasonably inade quate, inefficient, unduly insufficient or cannot be obtained, the commission shall may proceed, with or without notice, to make such investigation as it deems necessary. The commission, upon its own motion and without any complaint being made, may pro ceed to make such investigation, but No order changing such rates, rules and regulations, practices or acts complained of shall be made or entered by the commission without a formal public hearing in accordance with the provisions of the Kansas administrative procedure act, of which due notice shall be given by the commission to such natural gas public utility or to such complainant or complainants, if any. Any public investigation or hearing which the commission shall have power to make or to hold may be made or held before any one or more commissioners. All investigations, hearings, decisions and orders made by a com missioner shall be deemed the investigations, hearings, decisions and orders of the com mission, when approved by the commission. 850 JOURNAL OF THE HOUSE (b) The commission shall have power to require natural gas public utilities to make such improvements and do such acts as are or may be required by law to be done by any such natural gas public utility. Sec. 11. On and after July 1, 1997, K.S.A. 1996 Supp. 66-1,219 is hereby amended to read as follows: 66-1,219. It shall be the duty of the commission, either upon complaint or upon its own initiative, to The commission, upon its own initiative, may investigate all rates, joint rates, tolls, charges and exactions, classifications or schedules of rates or joint rates and rules and regulations of common carriers, except a motor carrier holding a certificate of public service. If after full hearing and investigation the commission finds that such rates, joint rates, tolls, charges or exactions, classifications or schedules of rates or joint rates or rules and regulations are unjust, unreasonable, unjustly discriminatory or unduly preferen tial, the commission shall have the power to fix and order substituted therefor such rates, tolls, charges, exactions, classifications or schedules of rates or joint rates and such rules and regulations as are just and reasonable. If upon any investigation it is found that any such regulation, measurement, practice, act or service complained of is unjust, unreasonable, unreasonably inefficient or insufficient, unduly preferential, unjustly discriminatory, or otherwise in violation of this act or of the orders of the commission, or if it is found that any service is inadequate or that any reason able service cannot be obtained, the commission may substitute therefor such other regu lations, measurements, practices, service or acts, and make such order respecting any such changes in such regulations, measurements, practices, service or acts as are just and rea sonable. When, in the judgment of the commission, public necessity and convenience re quire, the commission may establish just and reasonable concentration or other special rates, charges or privileges, but all such rates, charges and privileges shall be open to all users of a like kind of service under similar circumstances and conditions. Hearings shall be con ducted in accordance with the provisions of the Kansas administrative procedure act, unless, in the case of a general investigation, for good cause, the commission orders otherwise. Sec. 12. On and after July 1, 1997, K.S.A. 1996 Supp. 66-1,220 is hereby amended to read as follows: 66-1,220. (a) Upon a complaint in writing made against any common carrier, except a motor carrier holding a certificate of public service, governed by this act, by any mercantile, agricultural or manufacturing organization or society, or by any body politic or municipal organization, or by any taxpayer, firm, corporation or association, that any of the rates or joint rates, fares, tolls, charges, rules, regulations, classifications or schedules of such common carrier are in any respect unreasonable, unfair, unjust, unjustly discriminatory or unduly preferential, or both, or that any regulation, practice or act whatsoever affecting or relating to any service performed or to be performed by such common carrier for the public, is in any respect unreasonable, unfair, unjust, unreasonably inefficient or insufficient, un justly discriminatory or unduly preferential, or that any service performed or to be per formed by such common carrier for the public is unreasonably inadequate, inefficient, un duly insufficient or cannot be obtained, the commission shall may proceed, with or without notice, to make such investigation as it deems necessary. The commission, upon its own motion, and without any complaint being made, may proceed to make such investigation, but No order changing such rates, joint rates, tolls, charges, rules, regulations and classifications, schedules, practices or acts complained of shall be made or entered by the commission without a formal public hearing in accordance with the provisions of the Kansas administrative procedure act, of which due notice shall be given by the commission to such common carrier or to such complainant or complainants, if any. Any public investigation or hearing which the commission shall have power to make or to hold may be made or held before any one or more commissioners. All investigations, hearings, decisions and orders made by a commissioner shall be deemed the investigations, hearings, decisions and orders of the commission, when approved by the commission. (b) The commission shall have power to require common carriers, except a motor carrier holding a certificate of public service, to make such improvements and do such acts as are or may be required by law to be done by any such common carrier. Sec. 13. On and after July 1, 1997, K.S.A. 66-1,234 is hereby amended to read as follows: 66-1,234. It shall be the duty of the commission, either upon complaint or upon its own initiative, to The commission, upon its own initiative, may investigate all rates, joint April 11, 1997 851 rates, tolls, charges and exactions, classifications or schedules of rates or joint rates and rules and regulations of miscellaneous public utilities. If after full hearing and investigation the commission finds that such rates, joint rates, tolls, charges or exactions, classifications or schedules of rates or joint rates or rules and regulations are unjust, unreasonable, unjustly discriminatory or unduly preferential, the commission shall have the power to fix and order substituted therefor such rates, tolls, charges, exactions, classifications or schedules of rates or joint rates and such rules and regulations as are just and reasonable. If upon any investigation it is found that any regulation, measurement, practice, act or service complained of is unjust, unreasonable, unreasonably inefficient or insufficient, un duly preferential, unjustly discriminatory, or otherwise in violation of this act or of the orders of the commission, or if it is found that any service is inadequate or that any reasonable service cannot be obtained, the commission may substitute therefor such other regulations, measurements, practices, service or acts, and make such order respecting any such changes in such regulations, measurements, practices, service or acts as are just and reasonable. When, in the judgment of the commission, public necessity and convenience require, the commission may establish just and reasonable concentration, commodity, transit or other special rates, charges or privileges, but all such rates, charges and privileges shall be open to all users of a like kind of service under similar circumstances and conditions. Hearings shall be conducted in accordance with the provisions of the Kansas administrative procedure act, unless, in the case of a general investigation, for good cause, the commission orders otherwise. Sec. 14. On and after July 1, 1997, K.S.A. 1996 Supp. 66-1,235 is hereby amended to read as follows: 66-1,235. (a) Upon a complaint in writing made against any miscellaneous public utility governed by this act, by any mercantile, agricultural or manufacturing organ ization or society, or by any body politic or municipal organization, or by any taxpayer, firm, corporation or association, that any of the rates or joint rates, tolls, charges, rules, regulations, classifications or schedules of such miscellaneous public utility are in any respect unreason able, unfair, unjust, unjustly discriminatory or unduly preferential, or both, or that any regulation, practice or act whatsoever affecting or relating to any service performed or to be performed by such miscellaneous public utility for the public, is in any respect unrea sonable, unfair, unjust, unreasonably inefficient or insufficient, unjustly discriminatory or unduly preferential, or that any service performed or to be performed by such miscellaneous public utility for the public is unreasonably inadequate, inefficient, unduly insufficient or cannot be obtained, the commission shall may proceed, with or without notice, to make such investigation as it deems necessary. The commission may, upon its own motion, and without any complaint being made, proceed to make such investigation, but No order changing such rates, joint rates, fares, tolls, charges, rules, regulations and classifications, schedules, practices or acts complained of shall be made or entered by the commission without a formal public hearing in accordance with the provisions of the Kansas administrative procedure act, of which due notice shall be given by the commission to such miscellaneous public utility or to such complainant or complainants, if any. Any public investigation or hearing which the commission shall have power to make or to hold may be made or held before any one or more commissioners. All investigations, hearings, decisions and orders made by a commissioner shall be deemed the investigations, hearings, decisions and orders of the commission, when approved by the commission. (b) The commission shall have power to require miscellaneous public utilities to make such improvements and do such acts as are or may be required by law to be done by any such miscellaneous public utility. New Sec. 15. (a) The state corporation commission shall have the authority to exempt any public utility or common carrier over which the commission has jurisdiction from the requirements of publishing and filing with the commission copies of schedules of rates, joint rates, tolls, charges, classifications and divisions of rates for jurisdictional services affecting Kansas customers and charged for any such service that is not subject to price regulation. After a public utility or common carrier service has been exempted from such requirements, the commission may require such public utility or common carrier to publish and file with the commission tariffs for such service when necessary to protect consumers from fraudulent 852 JOURNAL OF THE HOUSE business practices or practices that are inconsistent with the public interest, convenience and necessity or when the commission otherwise deems necessary. (b) The provisions of this section shall take effect on and after July 1, 1997. Sec. 16. On and after July 1, 1997, K.S.A. 1996 Supp. 66-125 is hereby amended to read as follows: 66-125. (a) Any investor-owned electric public utility incorporated in the state of Kansas having a total capitalization in excess of $1 billion dollars may issue stocks, certificates, bonds, notes or other evidences of indebtedness, payable at periods of more than 12 months after the date thereof, when necessary for the acquisition of property, for the purpose of carrying out its corporate powers, the construction, completion, extension or improvements of its facilities, for the improvements or maintenance of its service, for the discharge or lawful refunding of its obligations, or for such other purposes as may be au thorized by law. Prior to any such issuance, there shall be secured from the commission a certificate stating the amount, character, purposes and terms on which such stocks, certif icates, bonds, notes or other evidences of indebtedness are proposed to be issued, as set out in the application for such certificate. In lieu of securing a certificate from the com mission, if the issuance requires a registration statement to be filed with the securities and exchange commission or such utility obtains an authorization or approval of such issuance from another state or federal agency, the public utility may file with the state corporation commission a copy of the information filed with the securities and exchange commission or such other agency. (b) The proceedings for obtaining such certificate from the commission and the con ditions of its being issued shall be as follows: (1) In case the stocks, certificates, bonds, notes or other evidences of indebtedness are to be issued for money only, the public utility or common carrier shall file with the com mission a statement, signed and verified by the president or other chief officer of the com pany having knowledge of the facts, showing: (A) The amount and character of the proposed stocks, certificates, bonds, notes or other evidences of indebtedness; (B) the general purposes for which they are to be issued; (C) the terms on which they are to be issued; (D) the total assets and liabilities of the public utility or common carrier; and (E) that the capital sought to be secured by the issuance of such stocks, certificates, bonds, notes or other evidences of indebtedness is necessary and required for such purposes and will be used therefor. (2) In case stocks, certificates, bonds, notes or other evidences of indebtedness are to be issued partly or wholly for property or services or other consideration than money, the public utility or common carrier shall file with the commission a statement, signed and verified by the president or other chief officer having knowledge of the facts, showing: (A) The amount and character of the stocks, certificates, bonds, notes or other evidences of indebtedness proposed to be issued; (B) the general purposes for which they are to be issued; (C) a general description and an estimated value of the property or services for which they are to be issued; (D) the terms on which they are to be issued or exchanged; (E) the amount of money, if any, to be received for the same in addition to such prop erty, services or other consideration; (F) the total assets and liabilities of the public utility or common carrier; and (G) that the capital sought to be secured by the issuance of such stocks, certificates, bonds, notes or other evidences of indebtedness is necessary and required for such purposes and will be used therefor. (c) The commission may also require the public utility or common carrier to furnish such further statements of facts as may be reasonable and pertinent to the inquiry. Upon full compliance by the applicant with the provisions of this section the commission shall forthwith issue a certificate stating the amount, character, purposes and terms upon which such stocks, certificates, bonds, notes or other evidences of indebtedness are proposed to be issued, as set out in the application for such certificate. Any issue of stocks, certificates, bonds, notes or other evidences of indebtedness not payable within one year, which shall April 11, 1997 853 be issued by such public utility or common carrier contrary to the provisions of this act shall be voidable by the commission, except as provided in subsection (d). (d) The provisions of this section shall not apply to motor carriers, as defined in K.S.A. 66-1,108, and amendments thereto or any public utility except as provided in subsection (a). Any issue of stocks, certificates, bonds, notes or other evidences of indebtedness not payable within one year, which were issued by a motor carrier prior to the effective date of this act without obtaining a certificate from the commission shall be deemed valid. New Sec. 17. (a) The American Society of Heating and Air Conditioning Engineers/ Illuminating Society of North America 1989 90-1 Standard or Code (ASHRAE/IES 90.189) is hereby adopted as the applicable thermal efficiency standard for new commercial and industrial structures in this state. (b) The state corporation commission has no authority to adopt or enforce energy ef ficiency standards for residential, commercial or industrial structures. (c) Nothing in this section shall be construed to preclude a city or county from adopting or enforcing thermal efficiency standards for structures within the jurisdiction of such city or county. New Sec. 18. (a) Except as provided by subsection (b), the person building or selling a previously unoccupied new residential structure shall disclose to the buyer information regarding the thermal efficiency of the structure on a form prepared and disseminated by the state corporation commission, which form shall be substantially as follows: ``ENERGY EFFICIENCY DISCLOSURE This residence (mark one of the following): ______ 1. Has been built to meet the energy efficiency standards of the Model Energy Code of 1993 ______ 2. Has been built to include the following energy efficiency elements: (1) Insulation values (R-value of insulation installed) for each of the following: Ceiling with attic above R-value _________ Cathedral ceiling R-value _________ Opaque walls R-value _________ Floors over unheated spaces R-value _________ Floors over outside air R-value _________ Foundation type: Slab-on-grade _________ Crawlspace _________ Basement and percent of basement walls underground _________ (2) Thermal properties of windows and doors for each of the following: Entry door(s) R-value _________ Sliding door(s) R-value _________ Other exterior doors R-value _________ Garage to house door R-value _________ Window U-value (determined from NFRC rating label or default table) _________ (3) HVAC equipment efficiency levels: Heating systems: Gas fired forced air furnace AFUE rating _________ Electric heat pump HSPF rating Air conditioning systems: Electric unit SEER rating _________ Electric heat pump EER rating _________ Ground source heat pump EER rating _________ Duct insulation levels: Insulation R-value of ducts outside envelope _________ Thermostat: Manual control type _________ Automatic set-back type _________ (4) Water heating efficiency levels: Water heater fuel type _________ 854 JOURNAL OF THE HOUSE Water heater capacity _________ NAECA energy factor _________'' (b) If a structure is subject to both the national manufactured housing construction and safety standards act (42 U.S.C. 5403) and the federal trade commission regulation on la beling and advertising of home insulation, 16 CFR section 460.16, both as in effect on the effective date of this act, the builder or seller may disclose, instead of the information required by subsection (a), the information regarding such structure that is required to be disclosed pursuant to such federal act and regulation. Sec. 19. On and after July 1, 1997, K.S.A. 1996 Supp. 66-117 is hereby amended to read as follows: 66-117. (a) Unless the state corporation commission otherwise orders, no common carrier or public utility over which the commission has control shall make effective any changed rate, joint rate, toll, charge or classification or schedule of charges, or any rule or regulation or practice pertaining to the service or rates of such public utility or common carrier except by filing the same with the commission at least 30 days prior to the proposed effective date. The commission, for good cause, may allow such changed rate, joint rate, toll, charge or classification or schedule of charges, or rule or regulation or practice per taining to the service or rates of any such public utility or common carrier to become effective on less than 30 days' notice. If the commission allows a change to become effective on less than 30 days' notice, the effective date of the allowed change shall be the date established in the commission order approving such change, or the date of the order if no effective date is otherwise established. Any such proposed change shall be shown by filing with the state corporation commission a schedule showing the changes, and such changes shall be plainly indicated by proper reference marks in amendments or supplements to existing tariffs, schedules or classifications, or in new issues thereof. (b) Whenever any common carrier or public utility governed by the provisions of this act files with the state corporation commission a schedule showing the changes desired to be made and put in force by such public utility or common carrier, the commission either upon complaint or upon its own motion, may give notice and hold a hearing upon such proposed changes. Pending such hearing, the commission may suspend the operation of such schedule and defer the effective date of such change in rate, joint rate, toll, charge or classification or schedule of charges, or any rule or regulation or practice pertaining to the service or rates of any such public utility or common carrier by delivering to such public utility or common carrier a statement in writing of its reasons for such suspension. (c) The commission shall not delay the effective date of the proposed change in rate, joint rate, toll, charge or classification or schedule of charges, or in any rule or regulation or practice pertaining to the service or rates of any such public utility or common carrier, more than 240 days beyond the date the public utility or common carrier filed its application requesting the proposed change. If the commission does not suspend the proposed schedule within 30 days of the date the same is filed by the public utility or common carrier, such proposed schedule shall be deemed approved by the commission and shall take effect on the proposed effective date. If the commission has not issued a final order on the proposed change in any rate, joint rate, toll, charge or classification or schedule of charges, or any rule or regulation or practice pertaining to the service or rates of any such public utility or common carrier, within 240 days after the carrier or utility files its application requesting the proposed change, then the schedule shall be deemed approved by the commission and the proposed change shall be effective immediately, except that (1) for purposes of the foregoing provisions regarding the period of time within which the commission shall act on an application, any amendment to an application for a proposed change in any rate, which increases the amount sought by the public utility or common carrier or substantially alters the facts used as a basis for such requested change of rate, shall, at the option of the commission, be deemed a new application and the 240-day period shall begin again from the date of the filing of the amendment, and (2) if hearings are in process before the commission on a proposed change requested by the public utility or common carrier on the last day of such 240-day period, such period shall be extended to the end of such hearings plus 20 days to allow the commission to prepare and issue its final order, and, (3) nothing April 11, 1997 855 in this subsection shall preclude the public utility or common carrier and the commission from agreeing to a waiver or an extension of the 240-day period. (c) (d) Except as provided in subsection (b) (c), no change shall be made in any rate, toll, charge, classification or schedule of charges or joint rates, or in any rule or regulation or practice pertaining to the service or rates of any such public utility or common carrier, without the consent of the commission. Within 30 days after such changes have been au thorized by the state corporation commission or become effective as provided in subsection (b) (c), copies of all tariffs, schedules and classifications, and all rules and regulations, except those determined to be confidential under rules and regulations adopted by the commission, shall be filed in every station, office or depot of every such public utility and every common carrier in this state, for public inspection. (d) (e) Upon a showing by a public utility before the state corporation commission at a public hearing and a finding by the commission that such utility has invested in projects or systems that can be reasonably expected (1) to produce energy from a renewable resource other than nuclear for the use of its customers, (2) to cause the conservation of energy used by its customers, or (3) to bring about the more efficient use of energy by its customers, the commission may allow a return on such investment equal to an increment of from 1/2% to 2% plus an amount equal to the rate of return fixed for the utility's other investment in property found by the commission to be used or required to be used in its services to the public. The commission may also allow such higher rate of return on investments by a public utility in experimental projects, such as load management devices, which it determines after public hearing to be reasonably designed to cause more efficient utilization of energy and in energy conservation programs or measures which it determines after public hearing pro vides a reduction in energy usage by its customers in a cost-effective manner. (e) (f) Whenever, after the effective date of this act, an electric public utility, a natural gas public utility or a combination thereof, files tariffs reflecting a surcharge on the utility's bills for utility service designed to collect the annual increase in expense charged on its books and records for ad valorem taxes, such utility shall report annually to the state cor poration commission the changes in expense charged for ad valorem taxes. For purposes of this section, such amounts charged to expense on the books and records of the utility may be estimated once the total property tax payment is known. If found necessary by the commission or the utility, the utility shall file tariffs which reflect the change as a revision to the surcharge. Upon a showing that the surcharge is applied to bills in a reasonable manner and is calculated to substantially collect the increase in ad valorem tax expense charged on the books and records of the utility, or reduce any existing surcharge based upon a decrease in ad valorem tax expense incurred on the books and records of the utility, the commission shall approve such tariffs within 30 days of the filing. Any over or under col lection of the actual ad valorem tax increase charged to expense on the books of the utility shall be either credited or collected through the surcharge in subsequent periods. The establishment of a surcharge under this section shall not be deemed to be a rate increase for purposes of this act. The net effect of any surcharges established under this section shall be included by the commission in the establishment of base rates in any subsequent rate case filed by the utility. (f) (g) Except as to the time limits prescribed in subsection (b) (c), proceedings under this section shall be conducted in accordance with the provisions of the Kansas administra tive procedure act. Sec. 20. On and after July 1, 1997, K.S.A. 1996 Supp. 55-150 is hereby amended to read as follows: 55-150. As used in this act unless the context requires a different meaning: (a) ``Commission'' means the state corporation commission. (b) ``Contractor'' means any person who acts as agent for an operator as a drilling, plugging, service rig or seismograph contractor in such operator's oil and gas, cathodic protection, gas gathering or underground natural gas storage operations. (c) ``Fresh water'' means water containing not more than 1,000 milligrams per liter, total dissolved solids. (d) ``Gas gathering system'' means a natural gas pipeline system used primarily for trans porting natural gas from a wellhead, or a metering point for natural gas produced by one or more wells, to a point of entry into a main transmission line, but shall not mean or include: 856 JOURNAL OF THE HOUSE (1) the gathering of natural gas produced from wells owned and operated by the gatherer and where the gathering system is used exclusively for its own private purposes; (2) Lead lines from the wellhead to the connection with the gathering system which are owned by the producing entity person; and (3) (2) gathering systems used exclusively for injection and withdrawal from natural gas storage fields under the jurisdiction of the federal energy reg ulatory commission. (e) ``Operator'' means a person who is responsible for the physical operation and control of a well, gas gathering system or underground natural gas storage facility. (f) ``Person'' means any natural person, partnership, governmental or political subdivi sion, firm, association, corporation or other legal entity. (g) ``Rig'' means any crane machine used for drilling or plugging wells. (h) ``Usable water'' means water containing not more than 10,000 milligrams per liter, total dissolved solids. (i) ``Well'' means a hole drilled or recompleted for the purpose of: (1) Producing oil or gas; (2) injecting fluid, air or gas in the ground in connection with the exploration for or production of oil or gas; (3) obtaining geological information in connection with the exploration for or production of oil or gas by taking cores or through seismic operations; (4) disposing of fluids produced in connection with the exploration for or production of oil or gas; (5) providing cathodic protection to prevent corrosion to lines; or (6) injecting or withdrawing natural gas. New Sec. 21. On and after July 1, 1997, the term ``public utility'' as used in K.S.A. 66104, and amendments thereto, and the term ``common carriers'' as used in K.S.A. 66-105, and amendments thereto, shall not include any gas gathering system, as defined in K.S.A. 55-150, and amendments thereto. New Sec. 22. (a) As used in sections 22 through 30: (1) ``Gas gathering services'' means the gathering or preparation of natural gas for trans portation, whether such services are performed for hire or in connection with the purchase of natural gas by the person gathering or preparing the gas or a marketer affiliated with the person gathering or preparing the gas. ``Gas gathering services'' does not include the gath ering of natural gas by an owner or operator of gathering facilities who: (A) Does not hold such facilities out for hire on or after the effective date of this act; or (B) does not purchase the gas for resale. (2) Other terms have the meanings provided by K.S.A. 55-150, and amendments thereto. (b) The provisions of sections 22 through 30 shall be part of and supplemental to chapter 55 of the Kansas Statutes Annotated. (c) This section shall take effect and be in force on and after July 1, 1997. New Sec. 23. (a) Each person offering gas gathering services in this state shall file with the commission copies of: (1) Rates paid for natural gas purchased at the wellhead by the person offering gas gathering services; (2) all rates charged for gas gathering services offered by such person; and (3) such data related to the characteristics of the gas purchased or gathered by the person offering gas gathering services and such information regarding the terms and duration of the contract as the commission determines necessary. The commission shall adopt rules and regulations prescribing the form and times of filing of such rates, data and information. The commission shall not be required to analyze, publish or disseminate such rates, data and information except to the extent otherwise required by law. (b) Upon notice and an opportunity to be heard in accordance with the provisions of the Kansas administrative procedure act, the commission may impose an administrative fine on any person for failure to file any rate, data or information as required by this section and rules and regulations of the commission. Such fine shall not exceed $10,000 for each day the rate, data or information remains unfiled as required or an aggregate amount of $250,000, whichever is less. (c) Rates, data and information filed pursuant to this section shall not be used by the commission to order a change in any rate except in a proceeding pursuant to section 25. April 11, 1997 857 (d) Rates, data and information filed pursuant to this section shall not be subject to K.S.A. 66-1220a, and amendments thereto. (e) This section shall take effect and be in force on and after July 1, 1997. New Sec. 24. (a) Persons offering gas gathering services in this state, or facilities es sential to provision of such services, shall provide, in a manner that is just, reasonable, not unjustly discriminatory and not unduly preferential, access to any person seeking such serv ices or facilities. (b) Persons performing gas gathering services shall engage in practices in connection with such services, and charge fees for such services, that are just, reasonable, not unjustly discriminatory and not unduly preferential. (c) This section shall take effect and be in force on and after July 1, 1997. New Sec. 25. (a) The commission, in its discretion, may at any time review a fee, term or practice being used by a person offering gas gathering services to ascertain whether a violation of section 24 has occurred. Upon such review, the commission may initiate a proceeding to determine whether a violation of section 24 has occurred. Upon notice and an opportunity for hearing in accordance with the Kansas administrative procedure act, the commission shall have authority to order the remediation of any violation of section 24 that the commission finds has occurred. (b) Any consumer of gas gathering services, any person seeking direct purchase of nat ural gas at the wellhead or any royalty owner, may request the commission to investigate and initiate proceedings to review a fee, term or practice being used by a person offering gas gathering services. As a condition to formal commission action, the person requesting commission action must first file a complaint that includes: (1) A statement that the complainant has presented the complaint, in writing, to the person offering gas gathering services and included a request for a meeting with such person to discuss the matter; (2) a copy of the document described in subsection (b)(1); (3) a statement that the requested meeting took place or the person offering gas gath ering services refused to meet with the complainant; (4) detailed factual statement indicating how the fee, term or practice violates section 24; (5) a statement of the precise remedy being requested that will make the fee, term or practice consistent with the provisions of section 24; (6) if the complainant is a producer of natural gas, a copy of the analysis of the com plainant's natural gas, including the nitrogen, carbon dioxide, hydrogen sulfide, water and other contaminant content; the amount of volume; and the amount of pressure at the well head; and (7) if available, a map showing the location of the affected wells and all gas gathering systems in the area. (c) The commission may resolve the complaint by use of an informal procedure estab lished by the commission pursuant to rules and regulations adopted by the commission or the commission may conduct a formal hearing and take evidence as necessary to determine the merits of the complaint. If the commission uses an informal procedure and the complaint is not resolved within 60 days after the complaint is filed, the commission shall conduct a formal hearing on the complaint. The hearing shall be conducted and notice given in ac cordance with the Kansas administrative procedure act. Upon such hearing, the commission shall have authority to order the remediation of any violations of section 24, to the extent necessary for remediation as to the aggrieved person with respect to the particular violation. (d) In evaluating a fee or term, or in establishing a reasonable fee or term, the com mission is not required to engage in cost-of-service ratemaking or any other form of rate making. Instead, the commission can employ any form of analysis and remedy that is de signed to accomplish the goals of this act while respecting the legitimate property interests of the person offering the gas gathering services. (e) Any natural gas producer using the gas gathering facilities of a person engaged in activities described in subsection (a)(1)(A) or (B) of section 22 may request the commission to investigate and initiate proceedings to review the fees, terms and practices of the person engaged in such activities. The commission shall conduct such investigation and proceeding 858 JOURNAL OF THE HOUSE in the same manner as provided by this section for complaints filed pursuant to subsection (b) and may order the remediation of any violation of subsection (b) of section 24 that the commission finds would exist except for the exemption provided by subsection (a)(1)(A) or (B) of section 22. (f) The commission shall maintain a publicized telephone number to facilitate the filing of informal complaints pursuant to subsection (b) or (e). (g) The commission shall adopt such rules and regulations as the commission determines reasonably necessary to prevent abuse of the complaint procedure provided for by this section. Such rules and regulations shall include provisions to prevent delay of the proceed ings that may damage a party's ability to pursue or defend the complaint. New Sec. 26. (a) The commission may adopt such rules and regulations as the com mission determines necessary to improve access to gas gathering services or to improve market competition or protect the public interest in such services. (b) This section shall take effect and be in force on and after July 1, 1997. New Sec. 27. (a) The commission may exempt natural gas sold directly to a consumer from the wellhead before the gas enters a gathering system from rate averaging or pricing systems that apply to gas sold from a gas gathering system. (b) This section shall take effect and be in force on and after July 1, 1997. New Sec. 28. (a) In any retail natural gas service area where the commission has granted a certificate of convenience and necessity to sell natural gas at retail from a gas gathering system, the commission may issue other certificates of convenience and necessity to make such sales in such area. A person purchasing natural gas or gas gathering services from a person offering gas gathering services in a retail natural gas service area where the com mission has issued more than one certificate of convenience and necessity shall not be assessed an exit fee for electing to purchase natural gas or gas gathering services from another person offering gas gathering services. (b) This section shall take effect and be in force on and after July 1, 1997. New Sec. 29. (a) Nothing in sections 22 through 28 shall be construed, or authorize the commission, to amend any contractual obligations between the person offering gas gathering services and the complainant unless the commission determines, after investiga tion, notice and hearing, that such contractual obligations are unjust, unreasonable, unjustly discriminatory or unduly preferential and adversely impact the public welfare. (b) This section shall take effect and be in force on and after July 1, 1997. New Sec. 30. If a public utility providing service from a gas gathering system deter mines that such utility lacks sufficient services or facilities to serve the needs of any person wishing to utilize such utility's services within such utility's certificated service area during any calendar year, such utility, not later than November 1 preceding the beginning of such calendar year, shall give notice thereof to the commission and to each person that such utility determines it will be unable to serve. New Sec. 31. If any provisions of this act or the application of this act to any person or circumstances is held invalid, the invalidity does not affect other provisions or applications of this act that can be given effect without the invalid provisions or application. To this end the provisions of this act are severable. Sec. 32. K.S.A. 66-131a is hereby repealed.''; Also on page 5, by renumbering sections 5 and 6 as sections 33 and 34; in line 24, by striking the first ``K.S.A.'' and inserting ``On and after July 1, 1997, K.S.A. 66-1,191, 661,234,''; in line 25, by striking ``66-118b'' and inserting ``55-150, 66-101d, 66-101e, 66-117, 6-118b, 66-125, 66-1,192, 66-1,204, 66-1,205, 66-1,219, 66-1,220, 66-1,235''; in line 27, by striking ``statute book'' and inserting ``Kansas register''; In the title, in line 12, by striking ``relating to'' and inserting ``powers and duties;''; in line 13, by striking all after ``expenses''; in line 14, by striking ``cerning'' and inserting a semicolon; also in line 14, after the semicolon by inserting: ``granting of exemptions from certain filing requirements; issuance of certain certificates; duties and authority relating to energy effi ciency standards for buildings; changes in rates and schedules of public utilities and common carriers; regulation of natural gas gathering systems and services;''; also in line 14, after ``K.S.A.'' by inserting ``66-1,191, 66-1,234,''; in line 15, by striking ``66-118b'' and inserting ``55-150, 66-101d, 66-101e, 66-117, 66-118b, 66-125, 66-1,192, 66-1,204, 66-1,205, 66 April 11, 1997 859 1,219, 66-1,220, 66-1,235''; in line 16, after ``sections'' by inserting ``; also repealing K.S.A. 66-131a''; And your committee on conference recommends the adoption of this report. Don Myers Tom Sloan Dennis McKinney Conferees on part of House Pat Ranson Alicia Salisbury Jim Barone Conferees on part of Senate On motion of Rep. Myers, the conference committee report on SB 333 was adopted. On roll call, the vote was: Yeas 102; Nays 20; Present but not voting 0; Absent or not voting 3. Yeas: Adkins, Alldritt, Allen, Ballard, Ballou, Beggs, Benlon, Boston, Bradley, Burroughs, Campbell, Carmody, Compton, Cox, Crow, Dahl, Dillon, Dreher, Edmonds, Empson, Fa ber, Farmer, Findley, Flaharty, Flora, Flower, Franklin, Freeborn, Garner, Geringer, Gil bert, Glasscock, Gregory, Haley, Hayzlett, Helgerson, Henderson, Henry, Holmes, Horst, Huff, Humerickhouse, Jennison, Johnson, Johnston, Kejr, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, J. Long, P. Long, Mason, Mayans, Mc Clure, McCreary, McKinney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, Osborne, Palmer, Pauls, E. Peterson, Phelps, Pottorff, Powell, Presta, Ray, Rear don, Reinhardt, Ruff, Samuelson, Sawyer, Sharp, Shore, Showalter, Shultz, Sloan, Spangler, Stone, Storm, Tanner, Thimesch, Toelkes, Tomlinson, Vining, Wagle, Weiland, Wells, Wempe, Wilk, Wilson. Nays: Aurand, Correll, Feuerborn, Gilmore, Grant, Howell, Hutchins, Mays, McKechnie, Packer, J. Peterson, Powers, Schwartz, Shallenburger, Shriver, Swenson, Toplikar, Vickrey, Weber, Welshimer. Present but not voting: None. Absent or not voting: Dean, Lloyd, O'Neal. CONFERENCE COMMITTEE REPORT Mr. President and Mr. Speaker: Your committee on conference on House amend ments to SB 232, submits the following report: The Senate accedes to all House amendments to the bill, and your committee on con ference further agrees to amend the bill, as printed with House Committee of the Whole amendments, as follows: On page 2, by striking all in line 43; On page 3, by striking all in lines 1 through 9 and inserting: ``(b) If within two years following the effective date of the annexation of any tract pur suant to K.S.A. 12-520c, and amendments thereto, and upon petition of the owner of any such tract, the governing body of the city shall exclude such tract if the owner reimburses the city for all costs incurred by the city in the extension of services to such tract, together with interest on the amount of such costs at a rate provided by K.S.A. 16-201, and amend ments thereto. The owner shall be required to pay only those costs which are attributable to services which exclusively benefit such tract. The provisions of this subsection shall apply only to a tract which is under one ownership on the date the petition for exclusion is filed by the owner thereof with the city governing body, and which will not adjoin the city on the effective date of its exclusion from the city. The terms ``tract'' and ``owner'' in this subsection shall have the same meaning ascribed thereto in K.S.A. 12-519, and amendments thereto. The provisions of this subsection shall expire on December 31, 1997.''; On page 10, in line 18, by striking ``and section 9'' and inserting ``and sections 10 and 11''; On page 13, following line 25, by inserting: 860 JOURNAL OF THE HOUSE ``New Sec. 11. Nothing in this act is intended to prevent cities or counties from en forcing local laws, enacted under other legal authority, for the gradual elimination of non conforming uses.''; By renumbering sections accordingly; And your committee on conference recommends the adoption of this report. Kent Glasscock Larry L. Campbell Gwen Welshimer Conferees on part of House Janice L. Hardenburger Rich Becker Conferees on part of Senate On motion of Rep. Campbell, the conference committee report on SB 232 was adopted. On roll call, the vote was: Yeas 83; Nays 36; Present but not voting 0; Absent or not voting 6. Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Campbell, Carmody, Compton, Cox, Dahl, Dreher, Edmonds, Empson, Faber, Farmer, Flower, Franklin, Freeborn, Geringer, Gilbert, Gilmore, Glasscock, Gregory, Hayzlett, Helgerson, Henry, Holmes, Horst, Huff, Humerickhouse, Hutchins, Jennison, Johnson, Johnston, Kejr, Phil Kline, Phill Kline, Landwehr, Lane, P. Long, Mason, Mayans, Mays, McCreary, Mc Kinney, Mollenkamp, Morrison, Myers, Neufeld, O'Connor, Osborne, Packer, Palmer, J. Peterson, Pottorff, Powell, Powers, Presta, Ray, Samuelson, Schwartz, Shallenburger, Shore, Showalter, Shriver, Shultz, Sloan, Stone, Storm, Swenson, Tanner, Thimesch, Tomlinson, Toplikar, Vining, Wagle, Weber, Weiland, Wilk. Nays: Burroughs, Correll, Crow, Dillon, Feuerborn, Findley, Flaharty, Flora, Garner, Grant, Haley, Henderson, Howell, Kirk, Klein, Krehbiel, Kuether, Larkin, J. Long, Mc Clure, McKechnie, Minor, Nichols, Pauls, E. Peterson, Phelps, Reardon, Reinhardt, Ruff, Sawyer, Sharp, Spangler, Toelkes, Vickrey, Wells, Wempe. Present but not voting: None. Absent or not voting: Bradley, Dean, Lloyd, O'Neal, Welshimer, Wilson. CONFERENCE COMMITTEE REPORT Mr. President and Mr. Speaker: Your committee on conference on Senate amend ments to HB 2064, submits the following report: The House accedes to all Senate amendments to the bill, and your committee on con ference further agrees to amend the bill, as printed with Senate Committee of the Whole amendments, as follows: On page 2, in line 3, by striking ``(d)'' and inserting ``(c)''; by striking all in lines 6 through 15; by relettering subsections accordingly; by striking all in lines 32 through 43; On page 3, by striking all in lines 1 through 4; On page 5, following line 19, by inserting: ``New Sec. 4. (a) The provisions of this section shall apply to: (1) The governor; (2) the lieutenant governor; (3) the governor's spouse; (4) all classified employees in the civil service of the state of Kansas; (5) all unclassified employees in the executive branch of state government whose com pensation is subject to approval by the governor pursuant to K.S.A. 75-2935b, and amend ments thereto; and (6) all members of boards, commissions and authorities of the executive branch of state government. (b) No person subject to the provisions of this section shall solicit or accept any gift, economic opportunity, loan, gratuity, special discount or service provided because of such person's official position, except: (1) A gift having an aggregate value of less than $40 given at a ceremony or public function where the person is accepting the gift in such person's official capacity; or April 11, 1997 861 (2) gifts from relatives or gifts from personal friends when it is obvious to the person that the gift is not being given because of the person's official position; or (3) anything of value received by the person on behalf of the state that inures to the benefit of the state or that becomes the property of the state; or (4) contributions solicited on behalf of a nonprofit organization which is exempt from taxation under paragraph (3) of subsection (c) of section 501 of the internal revenue code of 1986, as amended. (c) No person subject to the provisions of this section shall solicit or accept free or special discount meals from a source outside of state government, except: (1) Meals, the provision of which is motivated by a personal or family relationship or provided at events that are widely attended. An occasion is ``widely attended'' when it is obvious to the person accepting the meal that the reason for providing the meal is not a pretext for exclusive or nearly exclusive access to the person; (2) meals provided at public events in which the person is attending in an official ca pacity; (3) meals provided to a person subject to this act when it is obvious such meals are not being provided because of the person's official position; and (4) food such as soft drinks, coffee or snack foods not offered as part of a meal. (d) No person subject to the provisions of this section shall solicit or accept free or special discount travel or related expenses from a source outside state government, except: (1) When it is obvious to the person accepting the same that the free or special discount travel and related expenses are not being provided because of the person's official position; or (2) when the person's presence at a meeting, seminar or event serves a legitimate state purpose or interest and the person's agency authorizes or would authorize payment for such travel and expenses. (e) No person subject to the provisions of this section shall solicit or accept free or special discount tickets or access to entertainment or sporting events or activities such as plays, concerts, games, golf, exclusive swimming, hunting or fishing or other recreational activities when the free or special discount tickets or access are provided because of the person's official position. The provisions of this subsection shall not apply to persons whose official position requires or obliges them to be present at such events or activities. (f) (1) Violations of the provisions of this section by any classified employee in the civil service of the state of Kansas shall be considered personal conduct detrimental to the state service and shall be a basis for suspension, demotion or dismissal, subject to applicable state law. (2) Violations of the provisions of this section by any unclassified employee whose com pensation is subject to be approved by the governor pursuant to K.S.A. 75-2935b, and amendments thereto, shall subject such employee to discipline up to and including termi nation. (3) In addition to the penalty prescribed under paragraphs (1) and (2), the commission on governmental standards and conduct may assess a civil fine, after proper notice and an opportunity to be heard, against any person for a violation of this section, 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 remitted 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 commission on governmental standards and conduct fee fund.''; Also on page 5, in line 20, by striking ``46-232,''; In the title, by striking all in line 16 and inserting ``amending K.S.A. 46-267 and 46-269 and''; And your committee on conference recommends the adoption of this report. Janice L. Hardenburger Rich Becker U. L. Gooch Conferees on part of Senate 862 JOURNAL OF THE HOUSE Robert Tomlinson Ted Powers Gwen Welshimer Conferees on part of House On motion of Rep. Tomlinson, the conference committee report on HB 2064 was adopted. On roll call, the vote was: Yeas 121; Nays 0; Present but not voting 1; Absent or not voting 3. Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Bradley, Burroughs, Campbell, Compton, Correll, Cox, Crow, Dahl, Dillon, Dreher, Edmonds, Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Freeborn, Garner, Geringer, Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett, Helgerson, Henderson, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, Johnson, Johnston, Kejr, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, J. Long, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKinney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, Osborne, Packer, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson. Nays: None. Present but not voting: Carmody. Absent or not voting: Dean, Lloyd, O'Neal. The House stood at ease until 2:45 p.m. _________ Speaker Shallenburger called the House to order. CONFERENCE COMMITTEE REPORT Mr. President and Mr. Speaker: Your committee on conference on House amend ments to SB 197, submits the following report: The Senate accedes to all House amendments to the bill, and your committee on con ference further agrees to amend the bill, as printed with House Committee of the Whole amendments, as follows: On page 7, in line 7, by striking ``one-to-one'' and inserting ``two-to-one''; On page 10, following line 3, by inserting the following: ``New Sec. 4. (a) For the purpose of the pharmacy act of the state of Kansas, the fol lowing persons shall be deemed to be engaged in the practice of pharmacy: (1) Persons who publicly profess to be a pharmacist, or publicly profess to assume the duties incident to being a pharmacist and their knowledge of drugs or drug actions, or both; (2) persons who attach to their name any words or abbreviation indicating that they are a pharmacist licensed to practice pharmacy in Kansas. (b) ``Practice of pharmacy'' means the interpretation and evaluation of prescription or ders; the compounding, dispensing and labeling of drugs and devices pursuant to prescrip tion orders; the participation in drug selection according to state law and participation in drug utilization reviews; the proper and safe storage of prescription drugs and prescription devices and the maintenance of proper records thereof in accordance with law; consultation with patients and other health care practitioners about the safe and effective use of pre scription drugs and prescription devices; and participation in the offering or performing of those acts, services, operations or transactions necessary in the conduct, operation, man agement and control of a pharmacy. Nothing in this subsection shall be construed to add any additional requirements for registration or for a permit under the pharmacy act of the state of Kansas or for approval under subsection (g) of K.S.A. 65-1643 and amendments thereto, or to prevent persons other than pharmacists from engaging in drug utilization review, or to require persons lawfully in possession of prescription drugs or prescription April 11, 1997 863 devices to meet any storage or record keeping requirements except such storage and record keeping requirements as may be otherwise provided by law or to affect any person consulting with a health care practitioner about the safe and effective use of prescription drugs or prescription devices.''; On page 1, in the title, in line 16, before ``amending'' by inserting ``persons engaged in the practice of pharmacy;''; And your committee on conference recommends the adoption of this report. Carlos Mayans Jim Morrison Jerry Henry Conferees on part of House Sandy Praeger Larry D. Salmans Chris Steineger Conferees on part of Senate On motion of Rep. Mayans, the conference committee report on SB 197 was adopted. On roll call, the vote was: Yeas 114; Nays 8; Present but not voting 0; Absent or not voting 3. Yeas: Adkins, Alldritt, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Bradley, Bur roughs, Campbell, Carmody, Compton, Correll, Cox, Crow, Dahl, Dillon, Dreher, Ed monds, Empson, Faber, Findley, Flaharty, Flora, Flower, Franklin, Freeborn, Geringer, Gilbert, Gilmore, Glasscock, Gregory, Haley, Hayzlett, Helgerson, Henderson, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, Johnson, Johnston, Kejr, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Lane, Larkin, Lloyd, J. Long, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKinney, Minor, Mol lenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, Osborne, Palmer, Pauls, E. Pe terson, J. Peterson, Phelps, Pottorff, Powell, Powers, Ray, Reardon, Reinhardt, Ruff, Sa muelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vick rey, Vining, Wagle, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson. Nays: Farmer, Feuerborn, Garner, Grant, Landwehr, Packer, Presta, Weber. Present but not voting: None. Absent or not voting: Allen, Dean, O'Neal. CONFERENCE COMMITTEE REPORT Mr. President and Mr. Speaker: Your committee on conference on House amend ments to SB 22, submits the following report: The Senate accedes to all House amendments to the bill, and your committee on con ference further agrees to amend the bill, as printed with House Committee amendments, as follows: On page 5, by striking all in lines 32 through 43; On page 6, by striking all in lines 1 through 28; in line 29, by striking ``19-430 and K.S.A.''; also, in line 29, by striking ``are'' and inserting ``is''; By renumbering existing sections accordingly; In the title, in line 15, by striking all after the semicolon; in line 16, by striking all before ``amending''; also, in line 16, by striking ``19-430 and K.S.A.''; in line 17, by striking ``sections'' and inserting ``section''; And your committee on conference recommends the adoption of this report. Phill Kline Tony Powell Bruce Larkin Conferees on part of House 864 JOURNAL OF THE HOUSE Audrey Langworthy David R. Corbin Janis K. Lee Conferees on part of Senate On motion of Rep. Phill Kline, the conference committee report on SB 22 was adopted. On roll call, the vote was: Yeas 123; Nays 0; Present but not voting 0; Absent or not voting 2. 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, Osborne, Packer, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Pow ell, Powers, Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallen burger, 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, O'Neal. CONFERENCE COMMITTEE REPORT Mr. President and Mr. Speaker: Your committee on conference on House amend ments to SB 51, submits the following report: The Senate accedes to all House amendments to the bill, and your committee on con ference further agrees to amend the bill, as printed with House on Final Action amend ments, as follows: On page 1, in line 41, by striking all after ``thereto''; by striking all in line 42 and inserting ``, determined without regard to the provisions of K.S.A. 79-32,139, and amendments thereto, and the provisions of paragraph (xiv) of subsection (c) of K.S.A. 79-32,117, and amendments thereto,''; On page 5, by striking all in lines 33 through 43; By striking all on pages 6 and 7; On page 8, by striking all in lines 1 through 20 and inserting the following: ``Sec. 3. K.S.A. 1996 Supp. 79-32,175 is hereby amended to read as follows: 79-32,175. As used in this act: (a) ``Accessible to individuals with a disability'' means in conformance with Title I and Title III of the Americans with disabilities act of 1990, 42 USCA 12101 et seq. and 28 CFR Part 36 and 29 CFR 1630 et seq. (b) ``Facility'' means facility as such term is defined in 28 CFR Part 36.104, but shall not mean new construction or any addition made to an existing facility except with regard to a facility described by K.S.A. 79-32,176, and amendments thereto. (c) ``Expenditures for the purpose of making all or any portion of an existing facility accessible to individuals with a disability'' includes only those expenditures specifically at tributable to the: (1) Removal or equivalent facilitation of an existing architectural barrier, when removal or equivalent facilitation is for the purpose of making an existing facility accessible to individuals with a disability; or (2) new construction of a facility described by K.S.A. 79-32,176, and amendments thereto which will facilitate its accessibility to individuals with a disability. Such term shall not include any part of any expense paid or incurred in connection with the new construction or substantial alteration of a facility, except with regard to a facility described by K.S.A. 79-32,176, or the normal replacement of depreciable prop erty. April 11, 1997 865 (d) ``Expenditures for the purpose of making all or any portion of an existing facility or of equipment usable for the employment of persons with a disability'' includes only those expenditures specifically attributable to the modification or adaptation of an existing facility or of equipment, which modification or adaptation is for the purpose of employing individ uals with a disability. Sec. 4. K.S.A. 79-1109 and K.S.A. 1996 Supp. 79-32,117 and 79-32,175 are hereby repealed.'' By renumbering existing section 6 as section 5; In the title, by striking all in line 17; in line 18, by striking all before ``amending''; in line 19, by striking ``, 79-3235 and 79-3617''; in line 20, before ``and'' by inserting ``and 7932,175''; And your committee on conference recommends the adoption of this report. Phill Kline Tony Powell Bruce Larkin Conferees on part of House Audrey Langworthy David R. Corbin Janis K. Lee Conferees on part of Senate On motion of Rep. Phill Kline, the conference committee report on SB 51 was adopted. On roll call, the vote was: Yeas 123; Nays 0; Present but not voting 0; Absent or not voting 2. 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, Osborne, Packer, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Pow ell, Powers, Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallen burger, 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, O'Neal. MOTIONS TO CONCUR AND NONCONCUR On motion of Rep. Mayans to concur in Senate amendments to HB 2185, the motion did not prevail and the bill remains in conference. On roll call, the vote was: Yeas 61; Nays 62; Present but not voting 0; Absent or not voting 2. Yeas: Adkins, Allen, Ballou, Benlon, Boston, Burroughs, Campbell, Carmody, Cox, Crow, Dillon, Findley, Flaharty, Flora, Franklin, Gilbert, Gilmore, Glasscock, Gregory, Haley, Helgerson, Henderson, Henry, Horst, Huff, Johnston, Kirk, Klein, Phill Kline, Kuether, Lane, J. Long, Mayans, McKechnie, Morrison, Myers, Nichols, Phelps, Pottorff, Powell, Powers, Ray, Reardon, Ruff, Sawyer, Shallenburger, Shultz, Sloan, Spangler, Stone, Swen son, Tanner, Toelkes, Tomlinson, Toplikar, Vining, Wagle, Weiland, Welshimer, Wilk, Wil son. Nays: Alldritt, Aurand, Ballard, Beggs, Bradley, Compton, Correll, Dahl, Dreher, Ed monds, Empson, Faber, Farmer, Feuerborn, Flower, Freeborn, Garner, Geringer, Grant, Hayzlett, Holmes, Howell, Humerickhouse, Hutchins, Jennison, Johnson, Kejr, Phil Kline, Krehbiel, Landwehr, Larkin, Lloyd, P. Long, Mason, Mays, McClure, McCreary, McKin 866 JOURNAL OF THE HOUSE ney, Minor, Mollenkamp, Neufeld, O'Connor, Osborne, Packer, Palmer, Pauls, E. Peterson, J. Peterson, Presta, Reinhardt, Samuelson, Schwartz, Sharp, Shore, Showalter, Shriver, Storm, Thimesch, Vickrey, Weber, Wells, Wempe. Present but not voting: None. Absent or not voting: Dean, O'Neal. CONFERENCE COMMITTEE REPORT Mr. President and Mr. Speaker: Your committee on conference on House amend ments to SB 162, submits the following report: The Senate accedes to all House amendments to the bill, and your committee on con ference further agrees to amend the bill, as printed with House Committee amendments, as follows: On page 3, in line 18, after the period, by inserting ``In the event any such property which has been exempted pursuant to the preceding sentence is not used for religious purposes prior to its conveyance which results in its use for nonreligious purposes, there shall be a recoupment of property taxes in an amount equal to the tax which would have been levied upon such property except for such exemption for all taxable years for which such exemption was in effect. Such recoupment tax shall become due and payable in such year as provided by K.S.A. 79-2004, and amendments thereto. A lien for such taxes shall attach to the real property subject to the same on November 1 in the year such taxes become due and all such taxes remaining due and unpaid after the date prescribed for the payment thereof shall be collected in the manner provided by law for the collection of delinquent taxes. Moneys collected from the recoupment tax hereunder shall be credited by the county treasurer to the several taxing subdivisions within which such real property is located in the proportion that the total tangible property tax levies made in the preceding year for each such taxing subdivision bear to the total of all such levies made in that year by all such taxing subdivisions. Such moneys shall be credited to the general fund of the taxing subdivision or if such taxing subdivision is making no property tax levy for the support of a general fund such moneys may be credited to any other tangible property tax fund of general application of such subdivision.''; And your committee on conference recommends the adoption of this report. Phill Kline Tony Powell ruce Larkin Conferees on part of House Audrey Langworthy David R. Corbin Janis K. Lee Conferees on part of Senate On motion of Rep. Phill Kline, the conference committee report on SB 162 was adopted. On roll call, the vote was: Yeas 114; Nays 9; Present but not voting 0; Absent or not voting 2. Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Bradley, Burroughs, Campbell, Carmody, Compton, Correll, Cox, Dahl, Dillon, Dreher, Edmonds, Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flower, Franklin, Freeborn, Gar ner, Geringer, Gilbert, Gilmore, Glasscock, Grant, Gregory, Hayzlett, Helgerson, Hender son, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, Johnson, Johnston, Kejr, Phil Kline, Phill Kline, Krehbiel, Landwehr, Lane, Larkin, Lloyd, J. Long, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKinney, Minor, Mol lenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, Osborne, 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, Stone, Storm, Swenson, Tanner, Thimesch, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wilk, Wilson. Nays: Crow, Flora, Haley, Kirk, Klein, Kuether, Spangler, Toelkes, Wempe. Present but not voting: None. April 11, 1997 867 Absent or not voting: Dean, O'Neal. CONFERENCE COMMITTEE REPORT Mr. President and Mr. Speaker: Your committee on conference on House amend ments to SB 164, submits the following report: The Senate accedes to all House amendments to the bill, and your committee on con ference further agrees to amend the bill, as printed with House Committee amendments, as follows: On page 16, following line 18, by inserting: ``Sec. 11. K.S.A. 74-7008 is hereby amended to read as follows: 74-7008. (a) The board may appoint an executive director and an assistant executive director who shall be in the unclassified service of the Kansas civil service act and shall receive an annual salary fixed by the board. (b) Members of the state board of technical professions attending meetings of such board, or attending a subcommittee meeting thereof authorized by such board, shall be paid compensation, subsistence allowances, mileage and other expenses as provided in K.S.A. 75-3223 and amendments thereto. (c) The board may employ clerical personnel and other assistants all of whom shall be in the classified service under the Kansas civil service act and may make and enter into contracts of employment with such professional personnel as may be necessary, in the board's judgment, for the performance of its duties and functions and the execution of its powers. Sec. 12. K.S.A. 74-7009 is hereby amended to read as follows: 74-7009. (a) The follow ing nonrefundable fees shall be collected by the board: (1) For a an original license, issued upon the basis of an examination given by the board, an application fee in the sum of $25 not more than $200 plus an amount, to be determined by the board, equal to the cost of the respective any examination required by the board in each branch of the technical professions.; (2) for a license by reciprocity under K.S.A. 74-7024 and amendments thereto, an ap plication fee of not more than $500; (3) for a certificate of authorization for a corporation, the sum of not more than $150. $300; (4) for the biennial renewal of a license, the sum of not more than $50. $200; and (5) for the biennial renewal of a certificate of authorization for a corporation, the sum of not more than $75 $300. (b) On or before November 15, each year, the board shall determine the amount nec essary to administer the provisions of this act for the ensuing calendar year including the amount to be credited to the state general fund, and shall fix the fees for such year at the sum deemed necessary for such purposes. (c) The board shall remit all moneys received by or for it from fees, charges or penalties to the state treasurer at least monthly. Upon receipt of each such remittance the state treasurer shall deposit the entire amount thereof in the state treasury. Twenty percent of each such deposit shall be credited to the state general fund and the balance shall be credited to the technical professions fee fund, which fund is hereby created. All expenditures from such fund shall be made in accordance with appropriation acts upon warrants of the director of accounts and reports issued pursuant to vouchers approved by the chairperson of the board or by a person or persons designated by the chairperson. Sec. 13. K.S.A. 74-7024 is hereby amended to read as follows: 74-7024. (a) Any person who holds a current license or certificate of qualification or registration to practice any branch of the technical professions issued by the proper authority in any other state or political subdivision of the United States or in any other country may be exempted from examination for licensure in this state if the requirements under which said such license or certificate was issued are of a standard accepted by the board and if the person's record fully meets the requirements of this state in all respects other than examination. The board may issue, upon application therefor and receipt of payment of the application fee prescribed under K.S.A. 74-7009, and amendments thereto, or the fee which would be charged a licensee who is a resident of the state of Kansas applying for licensure or certification in the 868 JOURNAL OF THE HOUSE state in which the applicant for licensure in this state resides, whichever is greater, a license to practice the appropriate technical profession if the proper authority of the state, political subdivision or country from which the applicant holds a license or certificate agrees to accept on an equal basis persons who hold licenses issued by the authority of this state. (b) The board may exempt from examination and may issue upon application therefor and the payment of the application fee prescribed in K.S.A. 74-7009, and amendments thereto, the appropriate license to (1) any engineer who holds a license or certificate of qualification or registration issued by proper authority of the national council of state boards of engineering examiners, or of the national bureau of engineering registration; and (2) any architect who holds a certificate of the national council of architectural registration board or the equivalent thereof, as determined by the board. Sec. 14. K.S.A. 74-7035 is hereby amended to read as follows: 74-7035. The provisions of this act shall not apply to: (a) The practice of any technical profession by a person who is not a resident of and has no established place of business in the state of Kansas, or who has recently become a resident of this state, if such person has filed with the board an application for a license and has paid the application fee required by this act. Such person shall be legally qualified by license or registration to practice the profession in such person's own state or country in which the requirements and qualifications for obtaining a license or certificate of registration are not lower than those specified in this act. Such practice shall continue only for such time as the board requires for the consideration of the application for license; (b) (a) The work of an employee or a subordinate of a person holding a license under this act, or an employee of a person practicing lawfully under subsection (a), if such work does not include final designs or decisions, responsible charge of design or supervision and is done under the direct responsibility and supervision of a person practicing lawfully under subsection (a) a technical profession; (c) (b) the practice of persons who are not residents of and have not established a place of business in this state, who are acting as consulting associates of persons licensed under the provisions of this act and who are legally qualified for such professional service in such persons' own state or country; (d) (c) the practice of persons who are employees of any person, firm or corporation and who do not offer to the public their services in the technical professions; (e) (d) the practice of any person who is exclusively and regularly employed by one employer only, the employer not being an engineering, architectural or land surveying firm, and the employer not being primarily engaged in the business of conveying an interest in real property, in an employer-employee relationship, in making surveys of land and deter minations of physical property rights in connection only with the affairs of such employer or its subsidiaries and affiliates and for the uses, purposes and benefit of such employer, subsidiaries and affiliates, only; (f) a nonresident person who holds a license or certificate of registration to practice the technical professions in another state and whose practice in this state is limited to agreeing to perform or holding the person's self out as able to perform a technical profession, if the person notifies the board in writing before engaging in such practice and does not engage in such practice for more than 30 days. If, within that time, the person applies for licensure to practice the technical professions in this state, the person may practice in this state to the extent permitted by subsection (a); (g) (e) a plumbing contractor, master plumber or journeyman plumber licensed under the provisions of K.S.A. 12-1508 et seq., and amendments thereto, while performing the work such plumber is authorized to perform pursuant to such license; or (h) (f) an electrical contractor, master electrician, journeyman, electrician or residential electrician licensed under the provisions of K.S.A. 12-1525 et seq., and amendments thereto, while performing the work such electrician is authorized to perform pursuant to such license. (i) (g) For purposes of this act, public officers and employees who, within the scope of their employment and in the discharge of their public duties, provide information pertinent to or review the sufficiency of technical submissions, or who inspect property or buildings for compliance with requirements safeguarding life, health or property, are not engaged in the practice of the technical professions.''; April 11, 1997 869 By renumbering sections accordingly; Also on page 16, in line 19, by striking ``and 65-4208'' and inserting ``65-4208, 74-7008, 74-7009, 74-7024 and 74-7035''; In the title, in line 14, by striking all following ``concerning''; in line 15, by striking all before the semicolon and inserting ``certain state boards; relating to licenses of such boards; relating to fees imposed on such licensees''; also in line 15, by striking ``and'' and inserting a comma; in line 16, following ``65-4208'' by inserting ``, 74-7008, 74-7009, 74-7024 and 747035''; And your committee on conference recommends the adoption of this report. Carlos Mayans Jim Morrison Jerry Henry Conferees on part of House Sandy Praeger Larry D. Salmans Chris Steineger Conferees on part of Senate On motion of Rep. Mayans to adopt the conference committee report on SB 164, Rep. Phil Kline offered a substitute motion to not adopt the conference committee report and asked that a new conference committee be appointed. The substitute motion prevailed. Speaker Shallenburger thereupon appointed Reps. Mayans, Morrison and Henry as sec ond conferees on the part of the House. REPORTS OF STANDING COMMITTEES The Committee on Federal and State Affairs recommends SCR 1612 be amended on page 1, in line 37, by striking ``the chil-''; in line 38, by striking ``dren of''; following line 39, by inserting new material as follows: ``WHEREAS, The Federal government is requesting the states to enact legislation to be in compliance with the Personal Responsibility and Work Opportunity Act of 1996 without the benefit of the states having access to the administrative rules and regulations which have not been adopted at this time. The Federal government should refrain from enacting State mandates without first adopting adequate rules and regulations, as well as opt-out provisions; and''; Also on page 1, in line 40, by striking ``traditional'' and inserting ``constitutional''; in line 41, by striking ``traditionally'' and inserting ``constitutionally''; On page 2, in line 10, preceding the semicolon, by inserting ``guaranteed in the Consti tution of the United States in amendments 4, 5, 6 and 14''; in line 18, by striking ``that'' and inserting ``to which''; in line 19, by striking ``knows'' and inserting ``can best judge''; in line 25, following ``Kansas'', by inserting ``, its members having sworn to uphold the Constitution of the United States and the Constitution of the State of Kansas,''; following line 30, by inserting new material as follows: ``Be it further resolved: That the President of the Senate and the Speaker of the House of Representatives should extend an invitation to each member of the Kansas Congressional Delegation to attend a meeting during the 1998 Legislative session and stand for questions concerning the Personal Responsibility and Work Opportunity Act of 1996; and Be it further resolved: That in accordance with K.S.A. 75-702, the attorney general of the State of Kansas is hereby required to vigorously defend the positions enumerated in this resolution and to cooperate with other States in any action which would support such po sitions; and''; Also on page 2, in line 34, by striking ``and'' and inserting a comma; in line 35, preceding the period, by inserting ``and the presiding officers of the other 49 State Legislatures''; and the concurrent resolution be adopted as amended. REPORT OF STANDING COMMITTEE Your Committee on Calendar and Printing recommends on requests for resolutions and certificates that 870 JOURNAL OF THE HOUSE Request No. 122, by Representative Weber, congratulating the City of Council Grove on its sesquicentennial year; Request No. 123, by Representative Weber, congratulating Garland Hendrickson for being recognized as Distinguished Citizen of 1996 by the Americus Chamber of Commerce; Request No. 124, by Representative Weber, congratulating Elenore Rucker for being named 1996 Senior Citizen of the Year in Herington; Request No. 125, by Representative Weber, congratulating Verl Ledy for being named 1996 Citizen of the Year in Herington; Request No. 126, by Representative Weber, congratulating Gordan and Mary Schroeder for being named 1996 Young Citizens of the Year in Herington; Request No. 127, by Representative Phelps, congratulating Deliece Mullen, O'Loughlin School Teacher, 1995 Presidential Award winner for excellence in mathematics and science; Request No. 128, by Representative Phelps, congratulating Julie Bliese, O'Loughlin School Teacher, 1996 Presidential Award winner for excellence in mathematics and science; be approved and the Chief Clerk of the House be directed to order the printing of said certificates and order drafting of said resolutions. On motion of Rep. Jennison, the committee report was adopted. The House stood at ease until the sound of the gavel. _________ Speaker Shallenburger called the House to order. MESSAGE FROM THE SENATE The Senate adopts conference committee report on SB 7. The Senate adopts conference committee report on SB 63. The Senate adopts conference committee report on SB 147. The Senate adopts conference committee report on SB 229. The Senate adopts conference committee report on SB 232. The Senate adopts conference committee report on SB 333. The Senate adopts conference committee report on HB 2105. The Senate adopts conference committee report on HB 2129. The Senate accedes to the request of the House for a conference on Sub. SB 86 and has appointed Senators Steffes, Praeger and Feleciano as third conferees on the part of the Senate. The Senate accedes to the request of the House for a conference on HB 2071 and has appointed Senators Steffes, Praeger and Feleciano as third conferees on the part of the Senate. CONFERENCE COMMITTEE REPORT Mr. President and Mr. Speaker: Your committee on conference on Senate amend ments to HB 2105, submits the following report: The House accedes to all Senate amendments to the bill, and your committee on con ference further agrees to amend the bill, as printed with Senate Committee of the Whole amendments, as follows: On page 7, in line 35, after ``41'' by inserting ``, 42''; in line 40 after ``41'' by inserting ``, 42''; On page 17, by striking all in lines 34 through 40 and inserting the following: ``(b) An exemption certificate shall relieve the vendor from collecting and remitting tax when taken in good faith. A vendor shall be presumed to have accepted an exemption certificate in good faith in the absence of evidence to the contrary. A vendor shall be deemed to have accepted an exemption certificate in good faith if the vendor: (1) Maintains a com pleted exemption certificate; (2) has ascertained the identity of the person or entity who presented the exemption certificate; and (3) has not been shown by a preponderance of the evidence to have had knowledge that the presentation of the certificate was improper.''; On page 26, in line 33, by striking the semicolon and inserting a comma; April 11, 1997 871 On page 31, in line 5, before ``and'' by inserting ``or a court of competent jurisdiction orders that a refund be made,''; also, in line 5, before ``the'' by inserting ``or in the event a change in valuation which results in a refund pursuant to subsection (a),''; in line 21, by striking all after ``where''; by striking all in lines 22 through 25; On page 51, in line 1, after the period by inserting ``(a)''; in line 12, by striking ``one''; in line 13, by striking ``year of'' and inserting ``three years of mass''; in line 19, by striking ``assessor'' and inserting ``or district appraiser''; in line 24, by striking all after ``currently''; by striking all in lines 25 through 30; in line 31, by striking ``currently a'' and inserting ``: (1) A''; in line 33, before the period by inserting ``; (2) a registered mass appraiser pursuant to rules and regulations adopted by the secretary of revenue; or (3) holding a valid residential evaluation specialist or certified assessment evaluation designation from the International Association of Assessing Officers''; in line 34, after ``county'' by inserting ``or district''; also, in line 34, by striking all after ``appraiser''; in line 35, by striking all before ``shall'' and inserting ``on the effective date of this act and who is not eligible for reappointment pursuant to this section''; in line 36, by striking all after ``office''; in line 37, by striking all before the period and inserting ``or appointment as a county or district appraiser in another county for a term expiring on July 1, 1999, and if any such person qualifies for an original appointment or reappointment prior to July 1, 1999, such person may be reappointed for a full term, and any other person who has at least three years of mass appraisal experience and is qualified by the director of property valuation as an eligible Kansas appraiser shall be eligible for appointment to such office for a term expiring on July 1, 1999, and if any such person qualifies for an original appointment prior to July 1, 1999, such person may be reappointed for a full term''; after line 37, by inserting the following: ``(b) The secretary of revenue shall adopt rules and regulations prior to October 1, 1997, necessary to establish qualifications for the designation of a registered mass appraiser.''; On page 76, by striking all in lines 28 through 43; By striking all on pages 77 through 80; On page 81, by striking all in lines 1 through 38; after line 38, by inserting the following: ``New Sec. 49. (a) Whenever the appraised valuation of any single-family owner-occu pied residential real property established for property taxation purposes exceeds by 75% or more the appraised valuation of such property for such purposes established for utilization for the next preceding taxable year, and if such increase is not due to such property being improved, a portion of the property tax attributable to such increase shall be refunded to the taxpayer as provided by this section. (b) Any person who qualifies for a refund pursuant to the provisions of subsection (a) and has completed an appeal pursuant to K.S.A. 79-1448, and amendments thereto, from the appraised valuation established for such residential real property may apply for a refund of property tax to the division of taxation of the department of revenue. For the taxable year for which such increase is established, the amount of such refund shall be equal to 80% of the property tax attributable to such increase; for the taxable year next succeeding the taxable year for which such increase is established, the amount of such refund shall be equal to 50% of the property tax attributable to such increase; and for the second taxable year suc ceeding the taxable year for which such increase is established, the amount of such refund shall be equal to 25% of the property tax attributable to such increase. (c) The secretary of revenue shall adopt rules and regulations necessary to effectively implement the provisions of this section, and shall devise forms necessary for the imple mentation of this section. (d) The provisions of this section shall be applicable to all taxable years commencing after December 31, 1996. Sec. 50. K.S.A. 1996 Supp. 79-4216 is hereby amended to read as follows: 79-4216. As used in this act, unless the context clearly requires otherwise, the following words and phrases shall have the meanings ascribed to them herein: (a) ``Barrel'' for oil measurement means a barrel of 42 U.S. gallons of 231 cubic inches per gallon, computed at a temperature of 60 degrees Fahrenheit. (b) ``Director'' means the director of taxation. 872 JOURNAL OF THE HOUSE (c) ``Gas'' means natural gas taken from below the surface of the earth or water in this state, regardless of whether from a gas well or from a well also productive of oil or any other product. (d) ``Gross value'' means the sale price of oil or gas at the time of removal of the oil or gas from the lease or production unit and if oil or gas is exchanged for something other than cash, or if no sale occurs at the time of removal or if the director determines that the relationship between the buyer and the seller is such that the consideration paid, if any, is not indicative of the true value or market price, then the director shall determine the value of the oil or gas subject to tax, based on the cash price paid to one or more producers for the oil or gas or based on the cash price paid to producers for like quality oil or gas in the vicinity of the lease or production unit at the time of the removal of the oil or gas from the lease or production unit. Notwithstanding the foregoing, if no sale of gas occurs at the time of removal and such gas is not stored, then the gross value of gas for the purpose of taxation under this act shall be the price for which such gas is sold at the time of sale if such sale is not between related parties. (e) ``Oil'' means petroleum, or other crude oil, condensate, casinghead gasoline, or other mineral oil which is severed or withdrawn from below the surface of the soil or water in this state. (f) ``Operator'' means the person primarily responsible for the management and oper ation of coal, oil or gas productions from a lease, production unit or mine. (g) ``Person'' means any natural person, firm, copartnership, joint venture, association, corporation, estate, trust or any other group or combination acting as a unit, and the plural as well as the singular number. (h) ``Producer'' means any person owning, controlling, managing or leasing any coal, oil or gas property or oil or gas well or coal or salt mine, and any person who serves in any manner any coal, oil or gas in this state, and shall include any person owning any direct and beneficial interest in any coal, oil or gas produced, whether severed by such person or some other person on their behalf, either by lease, contract or otherwise, including a royalty owner. (i) ``Remove'' or ``removal'' means the physical transportation of coal, oil or gas off of the lease or production unit or from the mine where severed; and if the manufacture or conversion of crude oil or natural gas into refined products occurs on the premises where severed, oil or gas shall be deemed to have been removed on the date such manufacture or conversion begins. (j) ``Secretary'' means the secretary of revenue. (k) ``Severed'' or ``severing'' means: (1) The production of oil through extraction or withdrawal of the same from below the surface of the soil or water, whether such extraction or withdrawal shall be by natural flow, mechanical flow, forced flow, pumping or any other means employed to get the oil from below the surface of the soil or water and shall include the withdrawal by any means whatsoever of oil upon which the tax has not been paid, from any surface reservoir, natural or artificial, or from a water surface; (2) the production of gas through the extraction or withdrawal of the same by any means whatsoever, from below the surface of the earth or water; and (3) the physical removal of coal from the earth. (l) ``Taxpayer'' means any person liable for the taxes imposed by this act. (m) ``Disruption of production'' means, in the case of oil, a continuous 24-hour period during which a well is not producing. Circulating and missed production days shall be considered production days if the operator can demonstrate that any lost production is subsequently recovered during a later production day. In the case of gas, a continuous onehour period during which a well is not open to the pipeline shall be deemed to be a dis ruption of production. Missed production hours shall be considered production hours if the operator can demonstrate that any lost production is subsequently recovered during later production hours. Sec. 51. K.S.A. 79-4225 is hereby amended to read as follows: 79-4225. (a) If any taxes imposed under this act and determined and assessed by the director are unpaid: (1) Not due to negligence or to intentional disregard of this act or rules and regulations promulgated by the secretary, interest on such taxes shall be added at the rate per month prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto, from the date the tax was due until paid; (2) due to negligence or to intentional disregard of this act or rules and regulations April 11, 1997 873 promulgated by the secretary, but without intent to defraud, a penalty of 10% of the amount of such taxes shall be added, together with interest at the rate per month prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto, from the date the tax was due until paid; (3) due to fraud with intent to evade the tax imposed by this act, there shall be added thereto a penalty of 50% of the amount of such tax, together with interest at the rate per month prescribed by subsection (a) of K.S.A. 79-2968, and amendments thereto, from the date the tax was due until paid. (b) If any person fails or refuses to make any return, when required to do so under the provisions of this act, such person shall be subject to a penalty of $25 per day for each return which such person fails or refuses to file. (c) Whenever, in the judgment of the director, the failure of any person to comply with the provisions of subsection (a)(1), (a)(2), and (b) of this section, was due to reasonable cause, the director may, in the exercise of discretion, waive or reduce any of the penalties upon making a record of the reason therefor. (d) In addition to all other penalties herein provided, any person who fails to make a return, or to pay any tax herein provided, or who makes a false or fraudulent return, or fails to keep any books or records prescribed by this act, or who willfully violates any rules and regulations promulgated by the secretary for the enforcement and administration of this act, or who aids and abets another in attempting to evade the payment of any tax imposed by this act, or who violates any other provisions of this act, shall, upon conviction thereof, be guilty of a class C misdemeanor. (e) The director of taxation shall examine all returns filed under the provision of this act, and shall issue notices and final determinations of tax liability hereunder in the manner prescribed by K.S.A. 79-3226, and amendments thereto, relating to income taxes. New Sec. 52. In addition to any other rights and privileges provided by law under the Kansas retailers' sales tax and Kansas compensating tax acts, the secretary of revenue shall promulgate rules and directives under which the taxpayer shall be provided: (a) A copy of all work-papers compiled as a result of an audit of such taxpayer; (b) a personal or telephonic conference conducted by the director of taxation or agent of the director with the taxpayer or a representative of the taxpayer after completion of audit field work; and, if additional audit desk work is performed in the office subsequent to audit field work, a telephonic conference conducted by the director or agent of the director with the taxpayer or a representative of the taxpayer after completion of such subsequent audit desk work; and (c) consideration of the taxpayer's convenience, normal hours of operation, and the availability of administrative personnel resources in the scheduling of an audit by the direc tor.''; By renumbering existing sections accordingly; On page 82, in line 34, by striking ``and 79-32,111'' and inserting ``, 79-32,111 and 794225''; in line 37, by striking all before ``79-1575''; and in line 40, after the comma, by inserting ``79-4216,''; In the title, in line 19, by striking ``and 79-3635 and inserting ``, 79-3635 and 79-4225''; in line 22, by striking all after the second comma; in line 23, by striking ``79-1492,''; in line 25, before ``79-4226'' by inserting ``79-4216,'' And your committee on conference recommends the adoption of this report. Audrey Langworthy David R. Corbin Janis K. Lee Conferees on part of Senate Phill Kline Tony Powell Bruce Larkin Conferees on part of House On motion of Rep. Phill Kline, the conference committee report on HB 2105 was adopted. 874 JOURNAL OF THE HOUSE On roll call, the vote was: Yeas 115; Nays 5; Present but not voting 0; Absent or not voting 5. Yeas: Adkins, Alldritt, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Bradley, Bur roughs, Campbell, Carmody, Compton, Correll, Cox, Crow, Dahl, Dillon, Dreher, Ed monds, Empson, Faber, Farmer, Findley, Flaharty, Flower, Franklin, Freeborn, Garner, Geringer, Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett, Henderson, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, Johnson, Johnston, Kejr, Kirk, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, Lloyd, J. Long, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKinney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, Osborne, Packer, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, Ray, Reardon, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vick rey, Vining, Wagle, Weber, Weiland, Wells, Wempe, Wilk, Wilson. Nays: Feuerborn, Flora, Klein, Reinhardt, Welshimer. Present but not voting: None. Absent or not voting: Allen, Dean, Helgerson, O'Neal, Shore. CONFERENCE COMMITTEE REPORT Mr. President and Mr. Speaker: Your committee on conference on Senate amend ments to HB 2129, submits the following report: The House accedes to all Senate amendments to the bill, and your committee on con ference further agrees to amend the bill, as printed with Senate Committee of the Whole amendments, as follows: On page 5, in line 31, by striking ``: (1) Mental'' and inserting ``mental''; in line 36, by striking ``; or''; by striking all in lines 37 through 43; On page 6, in line 1, by striking all before the period; in line 3, by striking ``: (A) A'' and inserting ``a''; in line 4, by striking ``(1)''; in line 9, by striking ``; or''; by striking all in lines 10 through 16; in line 17, by striking all before the period; On page 8, by striking all in lines 30 through 43; On page 9, by striking all in lines 1 through 23; On page 16, in line 25, after ``(2)'' by inserting ``issued an institutional license prior to the effective date of this act and is''; in line 32, after ``thereto'' by inserting ``, in a psychiatric hospital licensed under K.S.A. 75-3307b and amendments thereto''; On page 17, by striking all in lines 7 through 43; By striking all of page 18; On page 19, by striking all in lines 1 through 29; And by renumbering sections accordingly; Also on page 19, by striking all in lines 38 through 43; On page 20, by striking all in lines 1 through 4; And by renumbering the remaining section accordingly; On page 1, in the title, in line 16, by striking all after the semicolon; in line 17, by striking ``persons;''; in line 19, by striking ``59-2972,''; in line 24, by striking all after ``Kansas''; by striking all in lines 25 through 28; in line 29, by striking ``Kansas''; And your committee on conference recommends the adoption of this report. Sandy Praeger Larry D. Salmans Chris Steineger Conferees on part of Senate Carlos Mayans Jim Morrison Jerry Henry Conferees on part of House On motion of Rep. Mayans, the conference committee report on HB 2129 was adopted. On roll call, the vote was: Yeas 115; Nays 6; Present but not voting 0; Absent or not voting 4. April 11, 1997 875 Yeas: Adkins, Alldritt, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Bradley, Bur roughs, 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, Huff, Humerickhouse, Hutchins, Jennison, Johnson, Johnston, Kejr, Kirk, Klein, Phil Kline, Krehbiel, Kuether, Landwehr, Lane, Lar kin, Lloyd, J. Long, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKinney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, Osborne, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Sharp, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vick rey, Vining, Wagle, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson. Nays: Howell, Phill Kline, Packer, Presta, Shallenburger, Weber. Present but not voting: None. Absent or not voting: Allen, Dean, O'Neal, Shore. The House stood at ease until the sound of the gavel. _________ Speaker Shallenburger called the House to order. REPORT ON ENGROSSED BILLS HB 2011 reported correctly engrossed April 11, 1997. HB 2218, 2490 reported correctly re-engrossed April 11, 1997. On motion of Rep. Jennison, the House adjourned until 11:00 a.m., Wednesday, April 30, 1997. CHARLENE SWANSON, Journal Clerk. JANET E. JONES, Chief Clerk. +--+ | | +--+