J o u r n a l   o f   t h e   S e n a t e


                                FIFTY-FOURTH DAY
                                    --------


                                                SENATE CHAMBER, TOPEKA,
     KANSAS
                                             Monday, March 31, 1997--9:00 a.m.

  The Senate was called to order by President Dick Bond.
  The roll was called with forty senators present.
  President Bond introduced as guest chaplain Dr. Stacy Ollar Jr., Pastor,
Welborn Com munity United Church of Christ, Kansas City, Kansas, who delivered
the invocation:
     Eternal God, our Father, we pause here this morning in this setting of
   the Senate of the State of Kansas to offer our prayer of praise and thanks
   for the gift of this day, for the gift of this state and to ask for Your
   divine guidance upon these our elected Senators, as they conceive, develop
   and vote laws to govern our lives. Provide we pray, for these our elected
   officials the gift of wisdom and understanding of the needs of all the
   citizens of our State. Inspire them with a spirit of creativity, of
   courage, and power as they move through the decision making process of
   providing for the needs of our people. We recognize, O Lord, that the
   answers to the complex problems that face our people and our state do not
   come easily. Therefore, provide the gift of truth and justice to enable
   these leaders to determine appropriate public policy and law to alleviate
   the many problems that confront all of us. May the words of the great
   Prophet Micah, of the Old Testament, be the word of guidance for all this
   day, ``for He has showed you, O Man, what is good; and what does the Lord
   require of you, but to do justice, to love kindness and to walk humbly
   with your God.'' May God, who is the Author and creator of our lives,
   inspire you with the gift of vitality and energy to live and act His Word
   in your life and in the life of the state. In the name of our loving and
   caring Father, Amen.

REFERENCE OF BILLS AND CONCURRENT RESOLUTIONS

  The following bills were referred to Committees as indicated:
  Financial Institutions and Insurance: SB 386.
  Ways and Means: SB 385.

CHANGE OF REFERENCE

  The President withdrew HB 2022, 2332, 2350, from the Committee on
Ways and Means, and referred the bills to the Committee of the Whole.

COMMUNICATIONS FROM STATE OFFICERS

                           CONSUMER CREDIT COMMISSION
  William F. Caton, Consumer Credit Commissioner, submitted the 1996 annual
report.
                   STATE BOARD OF INDIGENTS' DEFENSE SERVICES
  The FY 1996 annual report of the State Board of Indigents' Defense Services
was submitted.
  The President announced the above reports are on file in the office of the
Secretary of the Senate and are available for review at any time.

CONSIDERATION OF MOTIONS TO CONCUR OR NONCONCUR

  Senator Praeger moved the Senate Concur in house amendments to SB 244.

                                 March 31, 1997                             485

  SB 244, An act concerning the state board of healing arts; relating to
fees paid to the board; concerning compensation paid to review committee
members; amending K.S.A. 652012, 65-2840c, 65-2896, 65-5409 and 65-5509 and
K.S.A. 1996 Supp. 65-2852 and 65-6910 and repealing the existing sections,
was considered on final action.
  On roll call, the vote was: Yeas 38, nays 0, present and passing 0; absent
or not voting 2.
  Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin,
Donovan, Downey, Emert, Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger,
Hensley, Huelskamp, Jones, Jordan, Karr, Kerr, Langworthy, Lawrence, Lee,
Morris, Oleen, Petty, Praeger, Pugh, Ran son, Salisbury, Salmans, Schraad,
Steffes, Steineger, Tyson, Umbarger.
  Absent or not voting: Harrington, Vidricksen.
  The Senate concurred.
  Senator Salisbury moved the Senate Concur in house amendments to SB
280.
  SB 280, An act concerning tax increment financing; amending K.S.A.
1996 Supp. 121773 and repealing the existing section, was considered on final
action.
  On roll call, the vote was: Yeas 37, nays 1, present and passing 0; absent
or not voting 2.
  Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin,
Donovan, Downey, Emert, Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger,
Hensley, Jones, Jordan, Karr, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen,
Petty, Praeger, Pugh, Ranson, Salisbury, Salmans, Schraad, Steffes,
Steineger, Tyson, Umbarger.
  Nays: Huelskamp.
  Absent or not voting: Harrington, Vidricksen.
  The Senate concurred.

CONSIDERATION OF MOTIONS TO CONCUR OR NONCONCUR

  On motion of Senator Steffes the Senate nonconcurred in the House
amendments to Sub. SB 86 and requested a conference committee be
appointed.
  The president appointed Senators Steffes, Praeger and Feleciano as a
conference com mittee on the part of the Senate.
  On motion of Senator Steffes the Senate nonconcurred in the House
amendments to SB 229 and requested a conference committee be appointed.
  The president appointed Senators Steffes, Praeger and Feleciano as a
conference com mittee on the part of the Senate.
  On motion of Senator Steffes the Senate nonconcurred in the House
amendments to SB 282 and requested a conference committee be appointed.
  The president appointed Senators Steffes, Praeger and Hensley as a
conference commit tee on the part of the Senate.
  On motion of Senator Jordan the Senate nonconcurred in the House amendments
to Sub. SB 332 and requested a conference committee be appointed.
  The president appointed Senators Vidricksen, Jordan and Gilstrap as a
conference com mittee on the part of the Senate.

CONFIRMATION OF APPOINTMENTS

  In accordance with Senate Rule 56, the following appointments, submitted by
the Gov ernor to the senate for confirmation, were considered.
  Senator Emert moved the following appointments be confirmed as recommended
by the Standing Senate Committee:
  On appointment to the:
Kansas Performance Review Board:
  Clarence ``Bud'' Burgess, term expires June 30, 2000
  The vote was: Yeas 38, nays 0, present and passing 0, absent or not voting
2.
  Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin,
Donovan, Downey, Emert, Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger,
Hensley, Huelskamp, Jones, Jordan, Karr, Kerr, Langworthy, Lawrence, Lee,
Morris, Oleen, Petty, Praeger, Pugh, Ran son, Salisbury, Salmans, Schraad,
Steffes, Steineger, Tyson, Umbarger.
  Absent or not voting: Harrington, Vidricksen.
  The appointment was confirmed.

486                          JOURNAL OF THE SENATE

  On appointment to the:
Kansas Performance Review Board:
  Jeanne Andra Cranford, term expires June 30, 1998
  The vote was: Yeas 38, nays 0, present and passing 0, absent or not voting
2.
  Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin,
Donovan, Downey, Emert, Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger,
Hensley, Huelskamp, Jones, Jordan, Karr, Kerr, Langworthy, Lawrence, Lee,
Morris, Oleen, Petty, Praeger, Pugh, Ran son, Salisbury, Salmans, Schraad,
Steffes, Steineger, Tyson, Umbarger.
  Absent or not voting: Harrington, Vidricksen.
  The appointment was confirmed.
  On the appointment to the:
Kansas Performance Review Board:
  Dale K. Davis, term expires June 30, 2000
  The vote was: Yeas 38, nays 0, present and passing 0, absent or not voting
2.
  Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin,
Donovan, Downey, Emert, Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger,
Hensley, Huelskamp, Jones, Jordan, Karr, Kerr, Langworthy, Lawrence, Lee,
Morris, Oleen, Petty, Praeger, Pugh, Ran son, Salisbury, Salmans, Schraad,
Steffes, Steineger, Tyson, Umbarger.
  Absent or not voting: Harrington, Vidricksen.
  The appointment was confirmed.
  On the appointment to the:
Kansas Performance Review Board:
  Howard R. Fricke, term expires June 30, 2000
  The vote was: Yeas 38, nays 0, present and passing 0, absent or not voting
2.
  Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin,
Donovan, Downey, Emert, Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger,
Hensley, Huelskamp, Jones, Jordan, Karr, Kerr, Langworthy, Lawrence, Lee,
Morris, Oleen, Petty, Praeger, Pugh, Ran son, Salisbury, Salmans, Schraad,
Steffes, Steineger, Tyson, Umbarger.
  Absent or not voting: Harrington, Vidricksen.
  The appointment was confirmed.
  On the appointment to the:
Kansas Performance Review Board:
  F. Lynn Markel, term expires June 30, 1998
  The vote was: Yeas 38, nays 0, present and passing 0, absent or not voting
2.
  Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin,
Donovan, Downey, Emert, Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger,
Hensley, Huelskamp, Jones, Jordan, Karr, Kerr, Langworthy, Lawrence, Lee,
Morris, Oleen, Petty, Praeger, Pugh, Ran son, Salisbury, Salmans, Schraad,
Steffes, Steineger, Tyson, Umbarger.
  Absent or not voting: Harrington, Vidricksen.
  The appointment was confirmed.
  On motion of Senator Emert, the Senate recessed until 1:30 p.m.
 Afternoon Session   The Senate met pursuant to recess with President
Bond in the chair.

INTRODUCTION OF BILLS AND CONCURRENT RESOLUTIONS

  The following bill was introduced and read by title:
  SB 387, An act concerning the state workplace health and safety
program; relating to implementation and administration of the program;
amending K.S.A. 44-575 and repealing the existing section, by Committee on
Ways and Means.

                                 March 31, 1997                             487


CHANGE OF REFERENCE

  The President withdrew Sub. HB 2331 from the calendar under the
heading of General Orders, and referred the bill to the Committee on Ways and
Means.

MESSAGE FROM THE GOVERNOR

  SB 275 approved on March 31, 1997.

MESSAGE FROM THE HOUSE

  Announcing passage of SB 82, 186, 302.
  The House concurs in Senate amendments to HB 2093.
  The House concurs in Senate amendments to HB 2170.
  The House concurs in Senate amendments to HB 2200.
  The House concurs in Senate amendments to HB 2381.
  Also, announcing rejection of SB 13, 304.
  Announcing the House accedes to the request of the Senate for a
conference on SB 38 and has appointed Representatives O'Neal, Shore and
Reardon as conferees on the part of the House.
  The House accedes to the request of the Senate for a conference on
Substitute SB 86 and has appointed Representatives Cox, Humerickhouse
and Correll as conferees on the part of the House.
  The House accedes to the request of the Senate for a conference on SB
145 and has appointed Representatives Horst, Glasscock and Welshimer as
conferees on the part of the House.
  The House accedes to the request of the Senate for a conference on SB
229 and has appointed Representatives Bradley, Wilson and Kirk as
conferees on the part of the House.
  The House accedes to the request of the Senate for a conference on SB
276 and has appointed Representatives Lloyd, Hutchins and Crow as
conferees on the part of the House.
  The House accedes to the request of the Senate for a conference on SB
282 and has appointed Representatives Cox, Humerickhouse and Correll as
conferees on the part of the House.
  The House accedes to the request of the Senate for a conference on
Substitute SB 332 and has appointed Representatives Hayzlett, Howell
and Thimesch as conferees on the part of the House.

REPORTS OF STANDING COMMITTEES

  Committee on Education recommends HB 2098 be amended as
recommended by Senate Committee on Education as reported in the Journal of
the Senate on March 12, 1997, and the bill, as printed with amendments by
Senate Committee, be further amended on page 1, following the enacting
clause, by inserting two new sections as follows:
  ``Section 1.  K.S.A. 1996 Supp. 72-6433 is hereby amended to read as
follows: 72-6433.   (a) (1) The board of any district may adopt a local
option budget in each school year, commencing with the 1997-98 school year,
in an amount not to exceed an amount equal to the district prescribed
percentage of the amount of state financial aid determined for the district
in the school year. As used in this provision the term district prescribed
percentage means:
  (A)  For any district that was authorized to adopt and that adopted a local
option budget in the 1996-97 school year and to which the provisions of
section 2, and amendments thereto, do not apply in the current school year, a
percentage in each school year that is equal to the percentage specified in
the resolution under which the district was authorized to adopt a local
option budget in the 1996-97 school year;
  (B)  for any district that was authorized to adopt and that adopted a local
option budget in the 1996-97 school year and to which the provisions of
section 2, and amendments thereto, apply in the current school year, a
percentage in the 1997-98 school year that is equal to the sum of the
percentage of the amount of state financial aid the district was authorized
to budget in the preceding school year and 20% of the percentage computed for
the district by the state board under the provisions of section 2, and
amendments thereto, a percentage in the 1998-99 school year that is equal to
the sum of the percentage of the amount of state

488                          JOURNAL OF THE SENATE

financial aid the district was authorized to budget in the preceding school
year and 40% of the percentage computed for the district by the state board
under the provisions of section 2, and amendments thereto, a percentage in
the 1999-2000 school year that is equal to the sum of the percentage of the
amount of state financial aid the district was authorized to budget in the
preceding school year and 60% of the percentage computed for the district by
the state board under the provisions of section 2, and amendments thereto, a
percentage in the 2000-01 school year that is equal to the sum of the
percentage of the amount of state financial aid the district was authorized
to budget in the preceding school year and 80% of the percentage computed for
the district by the state board under the provisions of section 2, and
amendments thereto, a percentage in the 2001-02 school year and each school
year thereafter that is equal to the sum of the percentage of the amount of
state financial aid the district was authorized to budget in the preceding
school year and the percentage computed for the district by the state board
under the provisions of section 2, and amendments thereto;
  (C)  for any district that was not authorized to adopt a local option
budget in the 199697 school year and to which the provisions of section 2,
and amendments thereto, apply in the current school year, a percentage in the
1997-98 school year that is equal to 20% of the percentage computed for the
district by the state board under the provisions of section 2, and amendments
thereto, a percentage in the 1998-99 school year that is equal to the sum of
the percentage of the amount of state financial aid the district was
authorized to budget in the preceding school year and 40% of the percentage
computed for the district by the state board under the provisions of section
2, and amendments thereto, a percentage in the 1999-2000 school year that is
equal to the sum of the percentage of the amount of state financial aid the
district was authorized to budget in the preceding school year and 60% of the
percentage computed for the district by the state board under the provisions
of section 2, and amendments thereto, a percentage in the 2000-01 school year
that is equal to the sum of the percentage of the amount of state financial
aid the district was authorized to budget in the preceding school year and
80% of the percentage computed for the district by the state board under the
provisions of section 2, and amendments thereto, a percentage in the 2001-02
school year and each school year thereafter that is equal to the sum of the
percentage of the amount of state financial aid the district was authorized
to budget in the preceding school year and the percentage computed for the
district by the state board under the provisions of section 2, and amendments
thereto;
  (D)  for any district to which the provisions of section 2, and amendments
thereto, ap plied in the 1997-98 school year and to which the provisions of
section 2, and amendments thereto, do not apply in the current school year,
commencing with the 1998-99 school year, because an increase in the amount
budgeted by the district in its local option budget as authorized by a
resolution adopted under the provisions of subsection (b) causes the actual
amount per pupil budgeted by the district in the preceding school year as
determined for the district under provision (1) of subsection (a) of section
2, and amendments thereto, to equal or exceed the average amount per pupil of
general fund budgets and local option budgets computed by the state board
under whichever of the provisions (7) through (10) of subsection (a) of
section 2, and amendments thereto, is applicable to the district's enrollment
group, a percentage that is equal to the percentage of the amount of state
financial aid the district was authorized to budget in the preceding school
year if the resolution authorized the district to increase its local option
budget on a continuous and permanent basis. If the resolution that authorized
the district to increase its local option budget specified a definite period
of time for which the district would retain its authority to increase the
local option budget and such authority lapses at the conclusion of such
period and is not renewed, the term district prescribed percentage means a
percentage that is equal to the percentage of the amount of state financial
aid the district was authorized to budget in the preceding school year less
the percentage of increase that was authorized by the resolution unless the
loss of the percentage of increase that was authorized by the resolution
would cause the actual amount per pupil budgeted by the district to be less
than the average amount per pupil of general fund budgets and local option
budgets computed by the state board under whichever of the provisions (7)
through (10) of subsection (a) of section 2, and amendments thereto, is
applicable to the district's enrollment group, in which case, the term
district prescribed percentage means a percentage that is equal to the
percentage of the amount of state financial

                                 March 31, 1997                             489

aid the district was authorized to budget in the preceding school year less
the percentage of increase that was authorized by the resolution plus a
percentage which shall be computed for the district by the state board in
accordance with the provisions of section 2, and amend ments thereto, except
that, in making the determination of the actual amount per pupil budgeted by
the district in the preceding school year, the state board shall exclude the
percentage of increase that was authorized by the resolution.
  (2)  The adoption of a local option budget under authority of this
subsection shall require a majority vote of the members of the board and
shall require no other procedure, author ization or approval.
  (3)  The provisions of this subsection are subject to the provisions of
subsections (b) and   (c).
  (b) (1)  The board of any district may adopt that adopts a
local option budget under subsection (a) may increase the amount of such
budget in each school year for a period of time not to exceed four
school years, commencing with the 1997-98 school year, in an amount
which together with the percentage of the amount of state financial aid
budgeted under subsection (a) does not to exceed the state
prescribed percentage of the amount of state financial aid determined for the
district in the school year if the board of the district determines that
adoption of an increase in such a budget would be in the
best interests of the district.
  (2)  No district may adopt increase a local option budget
under authority of this subsec tion until a resolution authorizing
adoption of such a budget an increase is passed by the
board and published once in a newspaper having general circulation in the
district. The resolution shall be published in substantial compliance with
the following form:Unified School District No. ______,
                                                  ____________ County, Kansas.
                                   RESOLUTION
Be It Resolved that:
  The board of education of the above-named school district shall be
authorized to adopt a local option budget in each school year for a period of
time not to exceed ______ years in an amount not to exceed ______% of the
amount of state financial aid determined for the current school year. The
local option budget authorized by this resolution may be adopted, unless a
petition in opposition to the same, signed by not less than 5% of the
qualified electors of the school district, is filed with the county election
officer of the home county of the school district within 30 days after
publication of this resolution. In the event a petition is filed, the county
election officer shall submit the question of whether adoption of the local
option budget shall be authorized to the electors of the school district at
an election called for the purpose or at the next general election, as is
specified by the board of education of the school district.
                                  CERTIFICATE
  This is to certify that the above resolution was duly adopted by the board
of education of Unified School District No. ______, ____________ County,
Kansas, on the ____________  day of ____________, 19___.
                           Clerk of the board of education.
  All of the blanks in the resolution shall be appropriately filled. The
blank preceding the word ``years'' shall be filled with a specific number,
not to exceed the number 4, and the blank preceding the percentage symbol
shall be filled with a specific number. No word shall be inserted in either
of the blanks. The percentage specified in the resolution shall not exceed
the state prescribed percentage. The
  (3) (A)  Subject to the provisions of subpart (B), a resolution
authorizing an increase in the local option budget of a district shall state
that the board of education of the district shall be authorized to increase
the local option budget of the district in each school year in an amount not
to exceed ______% of the amount of state financial aid determined for the
current school year and that the percentage of increase may be reduced so
that the sum of the percentage of the amount of state financial aid budgeted
under subsection (a) and the per centage of increase specified in the
resolution does not exceed the state prescribed percentage

490                          JOURNAL OF THE SENATE

in any school year. The blank preceding the percentage symbol shall be filled
with a specific number. No word shall be inserted in the blank. The
resolution shall specify a definite period of time for which the board shall
be authorized to increase the local option budget and such period of time
shall be expressed by the specific number of school years for which the board
shall retain its authority to increase the local option budget. No word shall
be used to express the number of years for which the board shall be
authorized to increase the local option budget.
  (B)  In lieu of the requirements of subpart (A) and at the discretion of
the board, a resolution authorizing an increase in the local option budget of
a district may state that the board of education of the district shall be
continuously and permanently authorized to in crease the local option budget
of the district in each school year by a percentage which together with the
percentage of the amount of state financial aid budgeted under subsection  
(a) does not exceed the state prescribed percentage in any school year.
  (4)  A resolution authorizing an increase in the local option budget
of a district shall be published once in a newspaper having general
circulation in the school district state that the amount of the local
option budget may be increased as authorized by the resolution unless a
petition in opposition to such increase, signed by not less than 5% of the
qualified electors of the school district, is filed with the county election
officer of the home county of the school district within 30 days after
publication. If no petition as specified above is filed in accor
dance with the provisions of the resolution, the board may adopt a
is authorized to increase the local option budget of the
district. If a petition is filed as provided in the resolution, the board
may notify the county election officer of the date of an election to be held
to submit the question of whether adoption of a the board shall be
authorized to increase the local option budget shall be authorized
of the district. If the board fails to notify the county election
officer within 30 days after a petition is filed, the resolution shall be
deemed aban doned and no like resolution shall be adopted by the board within
the nine months following publication of the resolution.
  (5)  The requirements of provision (2) do not apply to any district that
is continuously and permanently authorized to increase the local option
budget of the district. An increase in the amount of a local option budget by
such a district shall require a majority vote of the members of the board and
shall require no other procedure, authorization or approval.
  (2) (6)  If any district is authorized to adopt
increase a local option budget, but the board of such district
chooses, in any school year, not to adopt or increase such
a budget, or chooses, in any school year, to adopt or
increase such budget in an amount less than the amount of the district
prescribed percentage of the amount of state financial aid in any school year
authorized, such board of education may do so choose. If
the board of any district refrains from adopting or increasing a local
option budget in any one or more school years or refrains from budgeting the
total amount authorized for any one or more school years, the authority of
such district to adopt a local option budget shall not thereby be extended
beyond the original period specified in the resolution authorizing adoption
of such budget, nor shall the amount authorized to be budgeted in any
succeeding school year shall not be increased thereby by such
refrainment, nor shall the authority of the district to increase its local
option budget be extended by such refrainment beyond the period of time
specified in the resolution authorizing an increase in the local option
budget if the resolution specified such a period of time.
  (3) (7)  Whenever an initial resolution has been adopted under
this subsection, and such resolution specified a lesser percentage
which together with the percentage of the amount of state financial aid
budgeted under subsection (a) is less than the state prescribed per
centage, the board of the district may adopt one or more subsequent
resolutions under the same procedure as provided for the initial resolution
and subject to the same conditions, and shall be authorized to increase
the percentage as specified in any such subsequent resolution for.
If the initial resolution specified a definite period of time for which the
district is authorized to increase its local option budget, the authority to
increase such budget by the percentage specified in any subsequent resolution
shall be limited to the remainder of the period of time specified in the
initial resolution. Any percentage specified in a subse quent resolution or
in subsequent resolutions shall be limited so that the sum of the per centage
authorized in the initial resolution and the percentage authorized in the
subsequent

                                 March 31, 1997                             491

resolution or in subsequent resolutions together with the percentage of
the amount of state financial aid budgeted under subsection (a) is not in
excess of the state prescribed percentage in any school year.
  (4) (8) (A)  Subject to the provisions of subpart (B), the
board of any district that has adopted a local option budget under
subsection (a), has been authorized to increase such budget under a
resolution which specified a definite period of time for retention of such
authorization, and has levied a tax under authority of K.S.A.
72-6435, and amendments thereto, may initiate, at any time after the final
levy is certified to the county clerk under any current authorization,
procedures to renew its the authority to adopt a
increase the local option budget subject to the conditions and in
the manner specified in provision (1) pro visions (2) and (3) of
this subsection and, at four-year intervals thereafter, may in like manner
and subject to like conditions renew such authorization for successive
four-year periods.
  (B)  The provisions of subpart (A) do not apply to the board of any
district that is continuously and permanently authorized to increase the
local option budget of the district.
  (5) (9)  As used in this subsection:
  (A)  ``Authorized to adopt increase a local option budget''
means that a district has adopted a resolution under this subsection, has
published the same, and either that the resolution was not protested or that
it was protested and an election was held by which the adoption of
authority of the board to increase a local option budget was
approved.
  (B)  ``District prescribed percentage'' means the percentage specified
in a resolution under which a district is authorized to adopt a local option
budget. No such percentage shall exceed the state prescribed percentage.
  (C)  ``State prescribed percentage'' means 25%.
  (b) (1)  The board of any district to which the provisions of this
subsection apply may adopt a local option budget in the 1997-98 school year
if the board of the district determines that adoption of such a budget would
be in the best interests of the district. The adoption of a local option
budget in the 1997-98 school year under authority of this subsection shall
require a majority vote of the members of the board and shall require no
other procedure, authorization or approval. The provisions of this subsection
apply to any district that is authorized to adopt and that adopts a local
option budget in the 1996-97 school year and, in order to be authorized to
adopt a local option budget in the 1997-98 school year, would be required by
operation of this section prior to its amendment by this act to initiate pro
cedures to renew its authority to adopt a local option budget, subject to the
conditions and in the manner specified in subsection (a), after certifying to
the county clerk the levy of a tax for the purpose of financing all or a
portion of the local option budget adopted in the 1996-97 school year.
  (2)  The amount of a local option budget adopted by the board of a district
in the 199798 school year under authority of this subsection shall not exceed
an amount equal to the district prescribed percentage of the amount of state
financial aid determined for the district in the school year. For the
purposes of this provision, the term district prescribed percentage means the
percentage specified in the resolution under which a district is authorized
to adopt a local option budget in the 1996-97 school year.
  (3)  To the extent the provisions of subsection (a) conflict with this
subsection, the pro visions of this subsection shall control.
  (4)  The provisions of this subsection shall expire on June 30, 1998.
  (c)  To the extent the provisions of the foregoing subsections conflict
with this subsection, this subsection shall control. Any district that is
authorized to adopt a local option budget in the 1997-98 school year under a
resolution which authorized the adoption of such budget in accordance with
the provisions of this section prior to its amendment by this act may
continue to operate under such resolution for the period of time specified in
the resolution or may abandon the resolution and operate under the provisions
of this section as amended by this act. Any such district shall operate under
the provisions of this section as amended by this act after the period of
time specified in the resolution has expired.
  (b) (d)(1)  There is hereby established in every district that
adopts a local option budget a fund which shall be called the supplemental
general fund. The fund shall consist of all amounts deposited therein or
credited thereto according to law.

492                          JOURNAL OF THE SENATE

  (2)  Subject to the limitation imposed under provision (3), amounts
in the supplemental general fund may be expended for any purpose for which
expenditures from the general fund are authorized or may be transferred to
the general fund of the district or to any program weighted fund or
categorical fund of the district.
  (3)  Amounts in the supplemental general fund may not be expended nor
transferred to the general fund of the district for the purpose of making
payments under any lease-purchase agreement involving the acquisition of land
or buildings which is entered into pursuant to the provisions of K.S.A.
72-8225, and amendments thereto.
  (4)  Any unexpended and unencumbered cash balance remaining in the
supplemental general fund of a district at the conclusion of any school year
in which a local option budget is adopted shall be disposed of as provided in
this subsection. If the district did not receive supplemental general state
aid in the school year and the board of the district is authorized
determines that it will be necessary to adopt a local option budget
in the ensuing school year, the total amount of the cash balance remaining in
the supplemental general fund shall be maintained in such fund or transferred
to the general fund of the district. If the board of such a district
is determines that it will not authorized be
necessary to adopt a local option budget in the ensuing school year, the
total amount of the cash balance remaining in the supplemental general fund
shall be transferred to the general fund of the district. If the district
received supplemental general state aid in the school year, transferred or
expended the entire amount budgeted in the local option budget for the school
year, and is authorized determines that it will be necessary to
adopt a local option budget in the ensuing school year, the total amount of
the cash balance remaining in the supplemental general fund shall be
maintained in such fund or transferred to the general fund of the district.
If such a district is determines that it will not authorized
be necessary to adopt a local option budget in the ensuing school
year, the total amount of the cash balance remaining in the supplemental
general fund shall be transferred to the general fund of the district. If the
district received supplemental general state aid in the school year, did not
transfer or expend the entire amount budgeted in the local option budget for
the school year, and is determines that it will not authorized
be necessary to adopt a local option budget in the ensuing school
year, the total amount of the cash balance remaining in the supplemental
general fund shall be transferred to the general fund of the district. If the
district received supplemental general state aid in the school year, did not
transfer or expend the entire amount budgeted in the local option budget for
the school year, and is authorized determines that it will be
necessary to adopt a local option budget in the ensuing school year, the
state board shall determine the ratio of the amount of supplemental general
state aid received to the amount of the local option budget of the district
for the school year and multiply the total amount of the cash balance
remaining in the supplemental general fund by such ratio. An amount equal to
the amount of the product shall be transferred to the general fund of the
district. The amount remaining in the supplemental general fund may be
maintained in such fund or transferred to the general fund of the district.
  New Sec. 2.  (a) In each school year, commencing with the 1997-98 school
year, the state board shall compute a district prescribed percentage for the
purpose of determining the amount of a local option budget the board of a
district to which the provisions of this section apply may adopt for the
school year. The district prescribed percentage for each district to which
the provisions of this section apply shall be computed by the state board as
provided in this section. The state board shall:
  (1)  Determine the actual amount per pupil for the preceding school year of
the general fund budget and the local option budget, if any, of each
district;
  (2)  compute the average amount per pupil for the preceding school year of
general fund budgets and local option budgets of districts with 75-125
enrollment in such school year;
  (3)  compute the average amount per pupil for the preceding school year of
general fund budgets and local option budgets of districts with 200-399
enrollment in such school year;
  (4)  compute the average amount per pupil for the preceding school year of
general fund budgets and local option budgets of districts with 1,800 or over
enrollment in such school year;
  (5)  compute an average amount per pupil for the preceding school year of
general fund budgets and local option budgets of districts with 100-299.9
enrollment in such school year

                                 March 31, 1997                             493

by preparing a schedule based upon an accepted mathematical formula and
deriving an amount for each such district from a linear transition between
the average amount per pupil computed under (2) and the average amount per
pupil computed under (3);
  (6)  compute an average amount per pupil for the preceding school year of
general fund budgets and local option budgets of districts with 300-1,799.9
enrollment in such school year by preparing a schedule based upon an accepted
mathematical formula and deriving an amount for each such district from a
linear transition between the average amount per pupil computed under (3) and
the average amount per pupil computed under (4);
  (7)  for districts with 0-99.9 enrollment, compare the amount determined
for the district under (1) to the average amount computed under (2). If the
amount determined under (1) is equal to or greater than the average amount
computed under (2), the provisions of this section do not apply to the
district. If the amount determined under (1) is less than the average amount
computed under (2), subtract the amount determined under (1) from the amount
computed under (2), multiply the remainder by enrollment of the district in
the preceding school year, and divide the product by the amount of state
financial aid deter mined for the district in the preceding school year. The
quotient is the district prescribed percentage of the district;
  (8)  for districts with 100-299.9 enrollment, compare the amount determined
for the district under (1) to the average amount computed under (5). If the
amount determined under (1) is equal to or greater than the average amount
computed under (5), the provisions of this section do not apply to the
district. If the amount determined under (1) is less than the average amount
computed under (5), subtract the amount determined under (1) from the amount
computed under (5), multiply the remainder by enrollment of the district in
the preceding school year, and divide the product by the amount of state
financial aid deter mined for the district in the preceding school year. The
quotient is the district prescribed percentage of the district;
  (9)  for districts with 300-1,799.9 enrollment, compare the amount
determined for the district under (1) to the average amount computed under
(6). If the amount determined under (1) is equal to or greater than the
average amount computed under (6), the provisions of this section do not
apply to the district. If the amount determined under (1) is less than the
average amount computed under (6), subtract the amount determined under (1)
from the amount computed under (6), multiply the remainder by enrollment of
the district in the preceding school year, and divide the product by the
amount of state financial aid deter mined for the district in the preceding
school year. The quotient is the district prescribed percentage of the
district;
  (10)  for districts with 1,800 or over enrollment, compare the amount
determined for the district under (1) to the average amount computed under
(4). If the amount determined under (1) is equal to or greater than the
average amount computed under (4), the provisions of this section do not
apply to the district. If the amount determined under (1) is less than the
average amount computed under (4), subtract the amount determined under (1)
from the amount computed under (4), multiply the remainder by enrollment of
the district in the preceding school year, and divide the product by the
amount of state financial aid deter mined for the district in the preceding
school year. The quotient is the district prescribed percentage of the
district.
  (b)  The provisions of this section apply to any district that budgeted an
amount per pupil in the preceding school year, as determined under provision
(1) of subsection (a), that was less than the average amount per pupil of
general fund budgets and local option budgets computed by the state board
under whichever of the provisions (7) through (10) of subsec tion (a) is
applicable to the districts enrollment group.'';
  Also on page 1, in line 22, by striking ``Section 1'' and inserting ``Sec.
3'';
  On page 2, in line 22, before ``shall'', by inserting ``of the proposed
sending school district'';
  By renumbering sections 2 through 6 as sections 4 through 8, respectively;
  On page 4, in line 17, by striking ``1'' and inserting ``3''; in line 30,
by striking ``1'' and inserting ``3'';
  On page 5, in line 4, after ``Supp.'', by inserting ``72-6433, 72-6433a
and'';
  In the title, in line 15, after ``the'', by inserting ``adoption of local
option budgets and providing a procedure for authorization to increase such
budgets; relating to''; also in line

494                          JOURNAL OF THE SENATE

15, by striking `therein''; in line 16, by striking ``under certain
circumstances; relating to'' and inserting ``and the provision of''; in line
17, by striking ``of'' and inserting ``for''; in line 18, by striking the
comma; also in line 18, after ``Supp.'' by inserting ``72-6433 and''; in line
19, after ``sections'', by inserting ``; also repealing K.S.A. 1996 Supp.
72-6433a''; and the bill be passed as amended.
  Committee on Ways and Means recommends HB 2127, 2150 be passed.
  Also HB 2298, 2498 be passed and, because the committee is of the
opinion that the bills are of a noncontroversial nature, be placed on the
consent calendar.
  HB 2160 be amended by substituting a new bill to be designated as
``Senate Substitute for HOUSE BILL No. 2160,'' as follows:
                  ``SENATE SUBSTITUTE FOR HOUSE BILL No. 2160
                         By Committee on Ways and Means
``AN ACT making and concerning appropriations for the fiscal years ending
June 30, 1998, and June 30, 1999, and for state agencies; authorizing certain
transfers, capital improve ment projects and fees, imposing certain
restrictions and limitations, and directing or authorizing certain receipts
and disbursements and acts incidental to the foregoing; amending K.S.A. 1996
Supp. 79-2959, 79-2964, 79-3425i and 79-34,147 and repealing the existing
sections.''; and the substitute bill be passed.
  HB 2166 be amended by substituting a new bill to be designated as
``Senate Substitute for HOUSE BILL No. 2166,'' as follows:
                  ``SENATE SUBSTITUTE FOR HOUSE BILL No. 2166
                         By Committee on Ways and Means
``AN ACT making and concerning appropriations for the fiscal years ending
June 30, 1997, June 30, 1998, and June 30, 1999, and authorizing certain
financing, for certain capital improvement projects for the state fair board,
department of social and rehabilitation services, Kansas state school for the
blind, Kansas state school for the deaf, department of corrections, state
historical society, insurance department, department of administra tion,
department of commerce and housing, Fort Hays state university, Kansas state
university, Kansas state university--extension systems and agriculture
research pro grams, Emporia state university, Pittsburg state university,
university of Kansas, univer sity of Kansas medical center, Wichita state
university, department of human resources, Kansas commission on veterans
affairs, attorney general--Kansas bureau of investiga tion, Kansas highway
patrol, adjutant general and department of wildlife and parks; authorizing
the initiation and completion of certain capital improvement projects; and
directing or authorizing certain disbursements and acts incidental to the
foregoing.''; and the substitute bill be passed.
  HB 2272 be amended by substituting a new bill to be designated as
``Senate Substitute for HOUSE BILL No. 2272,'' as follows:
                  ``SENATE SUBSTITUTE FOR HOUSE BILL No. 2272
                         By Committee on Ways and Means
``AN ACT making and concerning appropriations for the fiscal year ending June
30, 1997, for the state board of healing arts, state board of veterinary
examiners, Kansas state board of cosmetology, board of nursing, Kansas dental
board, state department of credit unions, state bank commissioner, consumer
credit commissioner, office of the securities commissioner of Kansas, state
board of technical professions, real estate appraisal board, Kansas real
estate commission, department of administration, Kansas racing and gaming
commission, state corporation commission, Kansas public employees retirement
system, department of revenue, insurance department, state board of
indigents' defense services, attorney general, department of social and
rehabilitation services, department of human resources, department of health
and environment, department of education, Kansas state school for the blind,
state historical society, Kansas arts commission, state library, Fort Hays
state university, Emporia state university, Pittsburg state university,
Kansas state university, Kansas state university -- Salina, college of
technology, university of Kansas, university of Kansas medical center,
Wichita state university, legislature, department of

                                 March 31, 1997                             495

corrections, Kansas parole board, Kansas sentencing commission, state fire
marshal, juvenile justice authority, Kansas department of agriculture, state
fair board, Kansas state grain inspection department, Kansas animal health
department, Kansas wheat commis sion, department of wildlife and parks,
Kansas water office, state conservation commis sion, Kansas lottery, adjutant
general, ombudsman of corrections, department of com merce and housing,
Kansas commission on veterans affairs and department of revenue-homestead
property tax refunds; authorizing certain transfers, imposing certain
restrictions and limitations, and directing or authorizing certain receipts
and disburse ments and acts incidental to the foregoing.''; and the
substitute bill be passed.
  SB 154 be amended on page 2, by striking all in lines 39
through 42; in line 43, by striking all before ``Designations'';
  On page 3, after line 38, by inserting:
  ``Sec. 2.  K.S.A. 20-2609 is hereby amended to read as follows: 20-2609.
(a) Any judge who has become permanently physically or mentally disabled and
who is not entitled to retire under K.S.A. 20-2608 and amendments thereto
may, upon being found so disabled by the supreme court, retire under this
section, and upon such retirement such judge shall be entitled to receive an
annuity, each monthly payment of which shall be in an amount equal to 3.5% of
the final average salary of the judge, determined as provided in subsection  
(b) of K.S.A. 20-2610 and amendments thereto, multiplied by the number of
total years of service, but for any judge who becomes disabled as provided
in this section on or after July 1, 1997, such monthly benefits shall be
at least 25% 50% but shall not exceed 70% of the final average
salary of the judge, determined as provided in subsection (b) of K.S.A.
202610 and amendments thereto.
  (b)  Any judge, or the conservator of any judge, desiring to retire under
the provisions of this section shall file an application for such retirement
with the clerk of the supreme court, which application shall be in such form
and contain such information as the supreme court shall require. The court
may require such judge to be examined by a physician ap pointed by the court
and may require such other evidence and proof of disability as it deems
necessary to reach a determination as to whether such judge is so permanently
disabled. If the supreme court shall determine that any such judge is so
permanently disabled it shall promptly notify the board and thereupon such
judge shall be placed on retirement by the board and monthly receive the
retirement annuity as provided in this section.
  (c)  Any judge receiving an annuity under the provisions of this section
shall be consid ered an active judge for the purposes of K.S.A. 20-2608 and
amendments thereto and shall, upon reaching age 65 or upon making application
for retirement, have such judge's retire ment under this section terminated
and such judge shall be placed on retirement under the provisions of K.S.A.
20-2608 and amendments thereto.
  (d)  In the event that a judge eligible for a disability annuity authorized
by this section shall be disabled for a period of five years or more
immediately preceding retirement, such judge's final average salary shall be
adjusted upon retirement by the actuarial salary as sumption rates in
existence during such period of disability. Effective July 1, 1993, such
judge's final average salary shall be adjusted upon retirement by 5% for each
year of disability after July 1, 1993, but before July 1, 1997.
Effective July 1, 1997, such judge's final average salary shall be
adjusted upon retirement by an amount equal to the lesser of: (1)  The
percentage increase in the consumer price index for all urban consumers as
published by the bureau of labor statistics of the United States department
of labor minus one percent; or (2) four percent per annum, measured from the
month the disability occurs to the month that is two months prior to the
month of retirement, for each year of disability after July 1, 1997.
  (e)  The provisions of law in effect on the retirement date of a judge
under the retirement system for judges shall govern the retirement benefit
payable to the judge, any joint annu itant and any beneficiary.
  Sec. 3.  K.S.A. 20-2610 is hereby amended to read as follows: 20-2610. (a)
(1) A judge who retires under K.S.A. 20-2608, and amendments thereto,
shall be entitled to receive an annual annuity payable in monthly
amounts subject to subsection (b), each monthly payment such
annual annuity of which shall be in an amount equal to the total of 5% of
the final average salary of the judge, determined as provided in subsection
(b), multiplied by the

496                          JOURNAL OF THE SENATE

number of the judge's years of service up to 10 years, and 3.5% of the final
average salary of the judge, determined as provided in subsection (b),
multiplied by the number of the judge's years of service in excess of 10
years, but such monthly benefits annual annuity shall not exceed
70% of the final average salary of such judge, determined as provided in sub
section (b). A judge who retires under K.S.A. 20-2608 and amendments thereto,
and who became a member of the system after June 30, 1987, shall be entitled
to receive an annual annuity payable in monthly amounts subject
to subsection (b), each monthly payment such annual annuity of
which shall be in an amount equal to the total of 3.5% of the final average
salary of the judge, determined as provided in subsection (b), multiplied by
the number of the judge's years of service, but such monthly benefits
annual annuity shall not exceed 70% of the final average salary of
the judge, determined as provided in subsection (b).
  (2)  For purposes of this subsection, the date of membership for a
district magistrate judge who became a member of the system as provided by
K.S.A. 20-2620 and amendments thereto and who purchased service as provided
in subsection (c) of K.S.A. 20-2620 and amendments thereto shall be the day
such district magistrate judge became a district mag istrate judge and if
such district magistrate judge's membership date as determined in this
subsection is earlier than July 1, 1987, such district magistrate judge shall
be entitled to the 5% of final average salary calculation for up to 10 years
of service as provided in this subsection. Any additional cost associated
with the provisions of this subsection shall be paid by such district
magistrate judge by means of a single lump-sum payment. No participating
employer shall pay all or any part of any cost associated with the provisions
of this subsection.
  (b)  For any judge who retires under K.S.A. 20-2608 or 20-2609, and
amendments thereto, on or after July 1, 1975, the annuity shall be based on
the final average salary of such judge as provided in this subsection. The
final average salary of a judge who becomes permanently physically or
mentally disabled and who is retired under K.S.A. 20-2608 or 202609, and
amendments thereto, shall be determined as if such judge had retired on the
date such judge became permanently physically or mentally disabled. The final
average salary of a former judge whose service is terminated without retiring
and who later retires under K.S.A. 20-2608, and amendments thereto, shall be
determined as if such former judge had retired at the time such service was
terminated.
  In the case of judges who retire on or after July 1, 1993, the final
average salary shall mean the average highest annual salary paid to the judge
for any three years of the last 10 years of service as a judge immediately
preceding retirement or termination of employment, or if service as a judge
is less than three years, then the final average salary shall be the average
annual salary paid to the judge during the full period of service as a judge,
or if service as a judge is less than one year, then the final average salary
shall be computed by multiplying the amount of monthly salary such judge was
receiving at the time of retirement by 12.
  (c)  The provisions of law in effect on the retirement date of a judge
under the retirement system for judges shall govern the retirement benefit
payable to the judge, any joint annu itant and any beneficiary.
  (d)  A judge who retires under K.S.A. 20-2608 and amendments thereto,
and who, after such retirement, again is appointed or elected as a judge,
shall have the judge's retirement annuity suspended as provided in this
subsection. Such judge shall become an active member and make employee
contributions to the system and receive service credit for any service after
the date of commencement of service in such position. Upon again retiring,
any credited service such member subsequently accrues shall be added to all
previous service and the retirement annuity shall be recalculated in
accordance with the provisions of this section.
  Sec. 4.  K.S.A. 20-2620 is hereby amended to read as follows: 20-2620. (a)
Except as otherwise provided, each district magistrate judge holding
such position on the effective date of this act may become a member of the
retirement system for judges on the first day of the payroll period of the
fiscal year ending June 30, 1994, only by filing with the board of trustees
of the Kansas public employees retirement system on or before the first day
of the payroll period of the fiscal year ending June 30, 1994, a written
election to become a member of the system. Failure to file such written
election shall be presumed to be an election not to become a member of the
system. Such election, whether to become a mem ber or not to become a member,
shall be irrevocable. In addition, any such district magistrate

                                 March 31, 1997                             497

judge who makes the election previously provided in this section, may elect
to transfer such district magistrate judge's service credit from the Kansas
public employees retirement sys tem as provided in subsection (e) of K.S.A.
20-2601 and amendments thereto and subsection   (c). The date of
membership for a district magistrate judge who became a member of the system
as provided in this section and who purchased service as provided in
subsection (c) shall be the day that such district magistrate judge became a
district magistrate judge.
  (b)  Each person who becomes a district magistrate judge on or after the
effective date of this act shall become a member of the retirement system for
judges on the first day such person holds the position of district magistrate
judge.
  (c)  The board of trustees of the Kansas public employees retirement system
shall trans fer to the credit of the district magistrate judge under the
retirement system for judges such amounts as may be presently credited to a
district magistrate judge's account for contribution under the Kansas public
employees retirement system and an equivalent amount to the employer's
account for contributions for such district magistrate judge whenever an
appli cation for conversion of service under the Kansas public employees
retirement system is received from a district magistrate judge. Any district
magistrate judge may purchase such service by electing such purchase prior to
retirement by means of a single lump sum payment or equal annual payments for
not to exceed five years. The lump sum or annual payments shall be determined
by the system's actuary by using the member's final average salary at the
time of application, actuarial assumptions and tables currently in use by the
system and the member's attained age. No participating employer shall pay all
or any part of the cost of service credit purchased by a member under this
section.
  Sec. 5.  K.S.A. 72-5501 is hereby amended to read as follows: 72-5501. As
used in this act, unless the context otherwise requires:
  (a)  ``Retirement system'' means the state school retirement system;
  (b)  ``board'' means the board of trustees of the Kansas public employees
retirement system;
  (c)  ``school year'' means either the twelve-month period beginning on
September first, or the legal school term during such period. In case of
doubt the board shall decide what constitutes a school year; but it shall not
give credit for a school year that represents less than 140 days, except that
the board may give credit for a school year if not less than 80 days of
actual service has been rendered and if continuance in school service was
prevented by illness or other emergency beyond the control of the person
entitled to such credit. No person shall receive credit for more than one
school year during any twelve-month period beginning on September 1. The
board shall give credit for 1/2 of a school year for 1/2 school year of
continuous full-time service;
  (d)  ``school employees'' means persons who have performed or who shall
hereafter per form school services as classroom teachers, administrators,
supervisors, librarians, nurses, clerks, janitors, or in any other full-time
capacity in the public schools, area vocationaltechnical schools or community
junior colleges of the state of Kansas and who are citizens of the United
States and it shall include (1) persons who have performed service as a
county superintendent of public instruction or as an employee appointed by
and under the super vision of a county superintendent, (2) persons who have
performed service as a state su perintendent of public instruction or as an
employee appointed by and under supervision of a state superintendent, (3)
persons who have performed services as an employee ap pointed by the former
state board for vocational education, except that prior to the time of
accepting such employment by such county superintendent, state superintendent
or state board for vocational education such employees had performed school
service in Kansas as a teacher, principal, supervisor, or superintendent, (4)
persons who are employees appointed by and under the supervision of the
constitutional state board of education, including those employees
transferred to the state department of education at its inception in January
of 1969, and who prior to the time of accepting such employment by the state
board of edu cation had performed school service in Kansas as a teacher,
principal, supervisor, or super intendent, (5) the commissioner of education
if such commissioner exercises an option to be covered by the state school
retirement system in lieu of being covered by the Kansas public employees
retirement system, which option shall be exercised by written notice of the
commissioner of education at the time of appointment, such notice to be
directed to

498                          JOURNAL OF THE SENATE

the state school retirement board and the board of trustees of the Kansas
public employees retirement system, (6) all instructional employees for the
school for the blind and such employees shall be excluded from participation
in any other state retirement system, and   (7) teachers and supervisors of
instruction at the state institutions under the management of the director of
penal institutions and those under the management of the state board of
social welfare which provide regular classroom instruction for their inmates
or patients if such instructional personnel have valid certificates issued by
the state board of education, but excepting such employees who have elected
or shall elect at the time of employment by the institution to participate in
the Kansas public employees retirement system. The term ``school employees''
shall not include any employee while a member of a separate retirement system
operated by any board of education but if any such employee at any time
becomes eligible to participate in the state retirement as provided by this
act, the years such person served in a school system in Kansas which
maintains a separate retirement system shall be included in determining years
of service of such person under this act. An employee per forming service in
a school system maintaining its own separate retirement system in Kansas may
qualify for service credit in the state system by discontinuing membership in
such separate retirement system prior to the time of retirement and accepting
a position which is covered by the state retirement system, and continuing in
such service for at least one school year. Such employee shall contribute to
the state retirement system an amount of money equal to that which was
deducted from such employee's salary for services rendered after September 1,
1941, in the city maintaining its own retirement system and this amount shall
be credited to the savings account of the employee. If such employee was for
any reason excluded from participation in the separate retirement system, the
board shall give credit for such nonmember service in the public schools in
the city maintaining a separate retirement system without the required
transfer of funds. After September 1, 1971, no person shall be deemed a
school employee for the purposes of this act;
  (e)  ``school service'' means: (1) Service performed as a school employee
prior to Sep tember 1, 1941, if such years of service include at least six
months during the years 193839 or 1939-40 or 1940-41; service performed by
any employee who was not in school service in any of the school years from
1938 to 1941, but who reentered school service after Sep tember 1, 1941, and
continued in such service for at least five years; all service prior to
September 1, 1941, of any annuitant who retired prior to September 1, 1961,
and who was granted a service annuity for one or more years as a contributing
member of the school retirement system; all service prior to September 1,
1941, of any employee who served for at least six months during one of the
qualifying years from 1938 to 1941 in a school system maintaining its own
separate retirement system in Kansas, if such employee has not quali fied,
nor will in the future qualify, for retirement benefits under the separate
retirement system; all service as a school employee, including out-of-state
service as a school employee, for a period of 12 10 or more years
prior to September 1, 1938, except that service annuities paid by the state
of Kansas to such school employees shall not include such out-of-state
service as a school employee, unless otherwise provided by law; and (2)
service as a school employee after September 1, 1941, and prior to age 70 as
a contributing member of the school retirement system. No service credit
shall be granted to a school employee who established or shall hereafter
establish membership later than September 1, 1941, for a period of time
between September 1, 1941, and the date of becoming a contributing mem ber of
the retirement system. School service shall include only full-time employees,
except that 1/2 year of credit shall be given to instructional employees who
perform school service on at least a 1/2 time basis throughout a school year.
No school service credit shall be given in fractional units of less than 1/2
year. The board may grant service credit to employees, who were performing
school service at the time of their induction into the armed forces of the
United States, equal to the time spent in the armed forces between September
1, 1940, and September 1, 1947, and between June 25, 1950, and July 27, 1953
and between August 5, 1964, and August 15, 1973, but no such service credit
shall be granted for a period of more than five years spent in the armed
forces between September 1, 1940, and September 1, 1947, or for a period of
more than two years spent in the armed forces between June 25, 1950, and July
27, 1953 or for a period of more than two years spent in the armed forces
between August 5, 1964 and August 15, 1973. In the event the employee served
during the

                                 March 31, 1997                             499

periods between September 1, 1940, and September 1, 1947, and between June
25, 1950, and July 27, 1953, such employee shall be granted a service credit
for the actual time spent in the armed forces between June 25, 1950, and July
27, 1953, nor shall such service credit be granted to any employee unless
such employee shall reenter school service and continue in such service for
at least one school year. The board may grant service credit to an em ployee
who was performing school service prior to the time of becoming employed as a
veterans' instructional on-the-farm training instructor equal to the time
spent as such in structor between the dates of September 1, 1946, and
September 1, 1961. The board may grant service credit to an employee who
prior to performing school service was a faculty member of the Kansas
vocational school at Topeka, known part of the time as the Kansas technical
institute, which operated under the Kansas state board of regents prior to
1956 equal to the time spent as instructor at such school. In case of doubt
the board shall decide what constitutes school service;
  (f)  ``school annuitant'' means any person who is entitled to receive a
school annuity;
  (g)  ``school annuity'' means the monthly payments due to any school
annuitant. Such payments shall continue for life, and be paid in monthly
installments;
  (h)  ``service annuity'' means that part of the school annuity which is
based upon the service record of the person concerned, and which is paid by
the state;
  (i)  ``savings annuity'' means that part of the school annuity which
results from the ac cumulated contributions of the school employee and
interest thereon less the proportionate share of the expense of the
administration of this act;
  (j)  ``disability annuity'' means a school annuity granted to a school
employee who suffers such physical or mental disability as to be unable to
perform school service;
  (k)  ``standard annuity'' means the school annuity which is granted to a
school employee at the age of 65 years, as prescribed by this act; the
standard annuity shall be used as the basis in computing actuarially
equivalent annuities granted at ages prior to 65 years;
  (l)  ``service record'' means the individual record kept by the board for
each school employee. It shall show the number of school years of school
service, the salary or wages earned, the date of birth, and such other data
as the board may require;
  (m)  ``age'' and ``attained age'' shall be computed as of September 1 of
the calendar year under consideration;
  (n)  ``deductions'' means the amounts withheld, as provided in this act,
from warrants issued in payment for school services; and
  (o)  ``actuarial computation'' means computation in accordance with some
standard ac tuarial table. The board shall determine which one of the
standard actuarial tables shall be used. The legal minimum standard for the
valuation of annuities shall be McClintock's ``table of mortality among
annuitants,'' with interest at 2% per annum.'';
  And by renumbering sections accordingly;
  On page 4, in line 20, by striking all after ``law.''; by striking all in
lines 21 through 23; in line 24, by striking all before ``Except'';
  On page 11, after line 10, by inserting:
  ``Sec. 7.  K.S.A. 1996 Supp. 74-4904 is hereby amended to read as follows:
74-4904. (1) The system may sue and be sued in its official name, but its
trustees, officers, employees and agents shall not be personally liable for
acts of the system unless such person acted with willful, wanton or
fraudulent misconduct or intentionally tortious conduct. Any agreement in
settlement of litigation involving the system and the investment of moneys of
the fund is a public record as provided in K.S.A. 45-215 et seq. and
amendments thereto and subject to the provisions of that act. The service of
all legal process and of all notices which may be required to be in writing,
whether legal proceedings or otherwise, shall be had on the executive
secretary at such executive secretary's office. All actions or proceedings
directly or indirectly against the system shall be brought in Shawnee county.
  (2)   Any person aggrieved by any order or decision of the board made
without a hearing, may, within 30 days after notice of the order or decision
of the board make written request to the board for a hearing thereon. The
board shall hear such party or parties in accordance with the provisions of
the Kansas administrative procedure act at its next regular meeting or at a
special meeting within 60 days after receipt of such request. For the purpose
of any hearing under this section, the board may appoint one or more
presiding officers. Any such

500                          JOURNAL OF THE SENATE

presiding officer shall be a member of the board or, an employee
of the board or any other person designated by the board to serve as such
presiding officer. Any such appointment shall apply to a particular
hearing or to a set or class of hearings as specified by the board in making
such appointment. The board shall review an initial order resulting from a
hearing under this section. Any member of the board who serves as a presiding
officer shall be reimbursed for actual and necessary expenses and shall
receive compensation in an amount fixed by the board not to exceed the per
diem compensation allowable for members of the board. The board is hereby
authorized to enter into a contract with any other person des ignated by the
board to serve as a presiding officer who is not a member of the board to
provide for reimbursement for actual and necessary expenses and compensation
for such person serving as a presiding officer.
  Sec. 8.  K.S.A. 1996 Supp. 74-4905 is hereby amended to read as follows:
74-4905. (a) On July 1, 1993, the board of trustees of the Kansas public
employees retirement system, as such board existed on June 30, 1993, is
hereby abolished. On July 1, 1993, there is hereby established a new board of
trustees of the Kansas public employees retirement system. Such board
established on July 1, 1993, shall consist of nine members, as follows:
  (1)  Six appointed members, four appointed by the governor subject to
confirmation by the senate as provided in K.S.A. 75-4315b and amendments
thereto, one appointed by the president of the senate and one appointed by
the speaker of the house of representatives. Except as provided by K.S.A.
1996 Supp. 46-2601, no person appointed to the board whose appointment is
subject to confirmation, shall exercise any power, duty or function as a
member of the board until confirmed by the senate. No more than two members
of the board whose appointment is subject to confirmation shall be from the
same political party;
  (2)  two retirement system members elected by the members and retirants of
the system as provided in subsection (12) of K.S.A. 74-4909 and amendments
thereto. As provided in this subsection, only active and retired members of
the system shall be eligible to be elected to the board and only active and
retired members of the system shall be eligible to elect the two retirement
system members pursuant to this subsection. Inactive members shall not be
eligible to be elected to the board nor to elect the two retirement system
members elected pursuant to this subsection.  If a member elected to the
board as provided in this subsection becomes inactive, such member is
disqualified from service on the board and such member's board position shall
be vacant and such vacancy shall be filled as provided in subsection
(b)(1).  Of the two retirement system members elected pursuant to this
subsec tion, one shall be a member of the retirement system who is in school
employment as provided in K.S.A. 74-4931 et seq. and amendments thereto
and one shall be a member of the retirement system other than a member who is
in school employment. For purposes of this subsection, retirement system
means the Kansas public employees retirement system, the Kansas police and
firemen's retirement system and the retirement system for judges; and
  (3)  the state treasurer.
  (b) (1)  Except as provided by this paragraph and paragraph (2), all
members of the board as provided in subsection (a)(1) and (a)(2) shall serve
four-year terms, except that of the members first appointed by the governor,
two shall be appointed for two-year terms and the member appointed by the
speaker of the house of representatives shall be appointed for a two-year
term. The governor shall designate the term for which each of the members
first appointed shall serve. All members appointed to fill vacancies in the
membership of the board and all members appointed to succeed members
appointed to membership on the board shall be appointed in like manner as
that provided for the original appointment of the member succeeded. All
members appointed to fill vacancies of a member of the board appointed by the
governor, the president of the senate or the speaker of the house of
representatives shall be appointed to fill the unexpired term of such member.
All vacancies on the board by a member elected by the members and retirants
of the system shall be filled by the board as provided by rules and
regulations adopted as provided in subsection (12) of K.S.A. 74-4909 and
amendments thereto.
  (2)  Except as provided in K.S.A. 1996 Supp. 46-2601, no person appointed
to the board by the governor shall exercise any power, duty or function as a
member of the board until confirmed by the senate. The terms of members
appointed by the governor who are serving

                                 March 31, 1997                             501

on the board on the effective date of this act shall expire on January 15, of
the year in which such member's term would have expired under the provisions
of this section prior to amend ment by this act. Thereafter, members shall be
appointed for terms of four years and until their successors are appointed
and confirmed.
  (c)  The board shall elect a chairperson of the board at the first regular
meeting held on or after July 1, 1993, and at each annual meeting thereafter
from the members of the board. The chairperson shall preside over meetings of
the board and perform such other duties as required by the board.
  (d)  The chairperson shall appoint another board member as
vice-chairperson, and the vice-chairperson shall perform the duties of
chairperson in the absence of the chairperson or upon the chairperson's
inability or refusal to act.
  (e)  The six members appointed pursuant to subsection (a)(1) shall have
demonstrated experience in the financial affairs of a public or private
organization or entity which employs 100 or more employees or had at least
five years' experience in the field of investment management or analysis,
actuarial analysis or administration of an employee benefit plan.
  (f)  No person shall serve on the board if such person has knowingly
acquired a sub stantial interest in any nonpublicly traded investment made
with moneys of the fund. Any such person who knowingly acquires such an
interest shall vacate such member's position on the board and shall be guilty
of a class A misdemeanor. For purposes of this subsection, ``substantial
interest'' means any of the following:
  (1)  If an individual or an individual's spouse, either individually or
collectively, has owned within the preceding 12 months a legal or equitable
interest exceeding $5,000 or 5% of any business, whichever is less, the
individual has a substantial interest in that business.
  (2)  If an individual or an individual's spouse, either individually or
collectively, has re ceived during the preceding calendar year compensation
which is or will be required to be included as taxable income on federal
income tax returns of the individual and spouse in an aggregate amount of
$2,000 from any business or combination of businesses, the individual has a
substantial interest in that business or combination of businesses.
  (3)  If an individual or an individual's spouse holds the position of
officer, director, associate, partner or proprietor of any business, the
individual has a substantial interest in that business, irrespective of the
amount of compensation received by the individual or individual's spouse.
  (4)  If an individual or an individual's spouse receives compensation which
is a portion or percentage of each separate fee or commission paid to a
business or combination of businesses, the individual has a substantial
interest in any client or customer who pays fees or commissions to the
business or combination of businesses from which fees or commissions the
individual or the individual's spouse, either individually or collectively,
received an ag gregate of $2,000 or more in the preceding calendar year.
  (5)  If an individual or an individual's spouse has received a loan from or
received fi nancing from any bank, savings and loan, credit union or any
other financial institution in an amount which exceeds $2,000, the individual
has a substantial interest in that financial institution.
  As used in this subsection, ``client or customer'' means a business or
combination of businesses.
  Any person who serves on the board shall fully disclose any substantial
interest that such person has in any publicly traded investment made with
moneys of the fund.
  (g)  No person who serves on the board shall be employed for a period of
two years commencing on the date the person no longer serves on the board and
ending two years after such date with any organization in which moneys of the
fund were invested, except that the employment limitation contained in this
subsection shall not apply if such person's employment is with an
organization whose stock or other evidences of ownership are traded on the
public stock or bond exchanges.
  (h)  All members of the board named, appointed or elected to the board
shall be subject to an investigation by the Kansas bureau of investigation or
other criminal justice agencies. Information to be obtained during such
investigation shall include criminal history record information, including
arrest and conviction data, criminal intelligence information and in
formation relating to criminal and background investigations as necessary to
determine qual

502                          JOURNAL OF THE SENATE

ifications of such member. Such information shall be forwarded to the senate
committee specified by the president of the senate for such committee's
consideration and other than conviction data, shall be confidential and shall
not be disclosed except to members and employees of the committee as
necessary to determine qualifications of such member. The committee, in
accordance with K.S.A. 75-4319 and amendments thereto shall recess for a
closed or executive meeting to receive and discuss information received by
the committee pursuant to this subsection.
  (i)  All of the powers, duties and functions of the board of trustees of
the Kansas public employees retirement system as such board existed prior to
July 1, 1993, are hereby trans ferred to and conferred and imposed upon the
board of trustees established pursuant to this act. The board of trustees of
the Kansas public employees retirement system established pursuant to this
act shall be the successor in every way of the powers, duties and functions
of the board of trustees existing prior to July 1, 1993, in which the same
were vested prior to July 1, 1993.
  Sec. 9.  K.S.A. 1996 Supp. 74-4908 is hereby amended to read as follows:
74-4908. (1) The board shall appoint an executive secretary and shall
establish the compensation therefor. Subject to the direction of the board,
the executive secretary shall be the managing officer of the system and as
such shall have charge of the office, records and supervision and direction
of the employees of the system. The executive secretary shall be in the
unclassified service under the Kansas civil service act.
  (2)  The executive secretary shall recommend to the board the
administrative organi zation, the number and qualifications of employees
necessary to carry out the intent of this act and the directions of the
board. Upon approval of the board, the executive secretary is authorized to
employ such persons in accordance with the Kansas civil service act.
  (3)  The board of trustees shall select and employ or retain a qualified
actuary who shall serve at its pleasure as its technical advisor on matters
regarding operation of the system. The actuary shall:
  (a)  Make an annual valuation of the liabilities and reserves of the
system, and a deter mination of the contributions required by the system to
discharge its liabilities and admin istrative costs under this act, and
recommend to the board rates of employer contributions required to establish
and maintain the system on an actuarial reserve basis. Such recom mended
employer contributions shall not be based on any other purpose outside of the
needs of the system as prescribed by this subsection.
  (b)  As soon after the effective date as practicable and once every three
years thereafter, make a general investigation of the actuarial experience
under the system including mor tality, retirement, employment turnover and
interest, and recommend actuarial tables for use in valuations and in
calculating actuarial equivalent values based on such investigation.
  (c)  Cooperate with and provide any assistance to the actuary, the
legislative coordinating council and the joint committee on pensions,
investments and benefits related to the in dependent actuarial audit and
evaluation as provided in K.S.A. 1996 Supp. 74-4908a and amendments thereto.
  (d)  Perform such other duties as may be assigned by the board.
  (4)  The attorney general of the state shall furnish such legal services as
may be necessary upon receipt of a request from the board, except that legal
services may be furnished by other counsel as the board in its discretion
deems necessary and prudent.
  (5)  The board shall employ or retain qualified investment counsel or
counselors or may negotiate with a trust company to assist and advise in the
judicious investment of funds as herein provided.
  (6)  The board may appoint a deputy executive secretary, an
investment officer, an in vestment analyst, a real estate manager, a direct
placement manager, a chief fiscal officer, a member services officer, an
attorney, an assistant investment officer and an information resource officer
to advise and assist the board in the performance of powers, duties and
functions relating to the management and investment of the fund and in such
other matters as may be directed by the board. Such appointed officers and
employees shall be in the unclassified service under the Kansas civil service
act. The compensation of such appointed officers and employees shall be
established by the board.

                                 March 31, 1997                             503

  Sec. 10.  K.S.A. 1996 Supp. 74-4910 is hereby amended to read as follows:
74-4910. (1) An eligible employer may join the system on January 1 of any
year. Application for affiliation shall be in the form of a resolution
approved by the governing or legislative body of the eligible employer or by
any other body or officer authorized by law or recognized by the board to
approve the action. No city or township shall become a participating employer
except by the adoption of a resolution therefor, which shall be published
once in the official city or township newspaper or, if there is none, in a
newspaper of general circulation in the city or county. No such resolution
shall take effect until 60 days after its final publication. If within 60
days of its final publication a petition signed by electors equal in number
to not less than 10% of the electors who voted at the last preceding regular
election in the township, in the case of townships, the last regular city
election in the city, in the case of cities is filed in the office of the
clerk of such city, or township demanding that such resolution be sub mitted
to a vote of the electors, the resolution shall not take effect until
submitted to a referendum and approved by a majority of the electors voting
thereon. A 2/3 vote of the members-elect of the governing body shall be
necessary for the affiliation of any eligible employer other than a city or
township. An application for affiliation with the system shall be filed with
the board not later than 30 days prior to the date participation is to begin,
except as such time limit may be extended by the board. Upon the filing of a
certified copy of such resolutions with the board an election pursuant to
this section shall be irrevocable, and the employer shall become a
participating employer on January 1 of the year immedi ately following the
filing of such election with the board.
  (2)  The state of Kansas in its capacity as an eligible employer, shall
become, by operation of law, a participating employer on the first entry
date. The Kansas turnpike authority shall not become a participating employer
nor shall its officers or employees be covered by the retirement system until
such time as its governing body by a 2/3 vote of the members of such
governing body adopts a resolution for affiliation and files the same in the
same manner and on the same conditions as in the case of an eligible employer
other than a city or township.
  (3)  If a participating employer is paying or has paid the salary or other
compensation of the judge, clerk or any other employee, whether elective or
appointive, such judge, clerk or other employee of such court or courts,
whether elective or appointive, shall be deemed an employee of the
participating employer. Such employee shall be governed by the pro visions
governing other eligible employees of such participating employer. Any
participating employer which has not heretofore included such employees as
eligible employees under the retirement system shall on the first day of the
month coinciding with or following the effective date of this act include
such employees if otherwise eligible as eligible employees under the
retirement system. Such employees, whether elective or appointive, if
employed on the employer's entry date may elect to pay forthwith the employee
contributions from the employer's entry date and thereby be governed by the
provisions governing other em ployees employed by the participating employer
on entry date except that no such employee shall be considered to be new
employees on the first day of the month coinciding with or following the
effective date of this act and commence making employee contributions in
compliance with other provisions governing the retirement system and the
participating employer shall make the employer contributions in accordance
with the alternative elected by the employee and other provisions governing
the retirement system.
  (4)  Any employer whose employees are covered by social security and who
otherwise do not meet the provisions of subsection (13) of K.S.A. 74-4902 and
amendments thereto may elect to affiliate under this section upon meeting the
definition of a governmental entity or instrumentality as determined by the
system. If, subsequent to such determination, the United States internal
revenue service determines that such employer does not meet the definition of
a governmental entity or instrumentality, such affiliation shall be null and
void and all employee accrued rights associated with such affiliation shall
be null and void and the system shall refund such amounts presently credited
to each employee's account and an equivalent amount to the employer for each
employee. The provisions of this subsection shall apply to current and future
participating employers.
  (5)  For affiliations on and after January 1, 1998, any eligible
employer, prior to the filing of an application for affiliation under this
system, shall request the board of trustees to submit

504                          JOURNAL OF THE SENATE

a proposal for such affiliation including an estimate of the employer's
contribution rate necessary to comply with the actuarial standard of this
system. Such eligible employer shall furnish all necessary data from which
such proposal is prepared, and shall pay all costs involved.
  Sec. 11.  K.S.A. 1996 Supp. 74-4911f is hereby amended to read as follows:
74-4911f.   (a) Subject to procedures or limitations prescribed by the
governor, any state officer may elect to not become a member of the system.
  (b) (1)  Any such state officer described in subsection (a) who is a member
of the Kansas public employees retirement system, on or after the effective
date of this act, may elect to not be a member by filing an election with the
office of the retirement system. Each state officer filing such election may
withdraw the state officer's accumulated contributions then on deposit with
the system in the same manner as prescribed in K.S.A. 74-4917 and amend ments
thereto for employees upon termination.
  (2)  Any state officer who has filed an election and received a refund of
contributions shall be entitled to again become a member of the system upon
the filing of proper notice in such form as prescribed by the system and upon
the making of a single lump-sum payment in an the amount equal
to all withdrawn contributions, plus interest at a rate specified by the
system determined by the actuary using the member's attained age and
the actuarial assumptions and tables currently in use by the system. Any
person may make any such purchase as described in this section at an
additional rate of contribution, in addition to the employee's contribution
as provided in K.S.A. 74-4919 and amendments thereto, based upon the member's
attained age at the time of purchase and using actuarial assumptions and
tables in use by the retirement system at such time of purchase, for such
periods of service, in lieu of a lump-sum amount as provided in this section.
Such additional rate of contribution shall commence at the beginning of the
quarter following such election and shall remain in effect until all quarters
of such service have been purchased. In no case shall the additional credit
so granted be greater than the total participating service forfeited on the
earlier withdrawal of contributions. Such contribution rates shall not remain
in effect longer than the period for which additional participating service
credit may be granted.
  (c)  Subject to limitations prescribed by the secretary of administration,
the state agency employing any employee who has filed an election as provided
under subsection (a) or (b) and who has entered into an employee
participation agreement, as provided in K.S.A. 755524 and amendments thereto
for deferred compensation pursuant to the Kansas public employees deferred
compensation plan shall contribute to such plan on such employee's behalf an
amount equal to 8% of the employee's salary, as such salary has been approved
pursuant to K.S.A. 75-2935b and amendments thereto or as otherwise prescribed
by law.
  (d)  As used in this section and K.S.A. 74-4927k and amendments thereto,
``state officer'' means the secretary of administration, secretary on aging,
secretary of commerce and hous ing, secretary of corrections, secretary of
health and environment, secretary of human re sources, secretary of revenue,
secretary of social and rehabilitation services, secretary of transportation,
secretary of wildlife and parks, superintendent of the Kansas highway patrol,
secretary of agriculture, state grain inspector, executive director of the
Kansas lottery, ex ecutive director of the Kansas racing commission,
president of the Kansas development finance authority, state fire marshal,
state librarian, securities commissioner, adjutant gen eral, members of the
state board of tax appeals, members of the Kansas parole board, members of
the state corporation commission, any unclassified employee on the staff of
officers of both houses of the legislature, any unclassified employee
appointed to the gov ernor's or lieutenant governor's staff and any person
employed by the legislative branch of the state of Kansas, other than any
such person receiving service credited under the Kansas public employees
retirement system or any other retirement system of the state of Kansas
therefor, who elected to be covered by the provisions of this section as
provided in subsection   (e) of K.S.A. 46-1302 and amendments thereto or who
is first employed on or after July 1, 1996, by the legislative branch of the
state of Kansas.
  (e)  The provisions of this section shall not apply to any state officer
who has elected to remain eligible for assistance by the state board of
regents as provided in subsection (a) of K.S.A. 74-4925 and amendments
thereto.'';
  And by renumbering sections accordingly;

                                 March 31, 1997                             505

  On page 13, after line 13, by inserting:
  ``Sec. 13.  K.S.A. 1996 Supp. 74-4914 is hereby amended to read as follows:
74-4914.   (1) The normal retirement date for a member of the system shall be
the first day of the month coinciding with or following the attainment of age
65 or, commencing July 1, 1986, age 65 or age 60 with the completion of 35
years of credited service or at any age with the completion of 40 years of
credited service, or commencing July 1, 1993, any alternative normal
retirement date already prescribed by law or age 62 with the completion of 10
years of credited service or the first day of the month coinciding with or
following the date that the total of the number of years of credited service
and the number of years of attained age of the member is equal to or more
than 85. In no event shall a normal retirement date for a member be before
six months after the entry date of the participating employer by whom such
member is employed. A member may retire on the normal retirement date or on
the first day of any month thereafter upon the filing with the office of the
retirement system of an application in such form and manner as the board
shall prescribe. Nothing herein shall prevent any person, member or retirant
from being employed, appointed or elected as an employee, appointee, officer
or member of the legislature. Elected officers may retire from the system on
any date on or after the attainment of the normal retirement date, but no
retirement benefits payable under this act shall be paid until the member has
terminated such member's office.
  (2)  No retirant shall make contributions to the system or receive service
credit for any service after the date of retirement.
  (3)  Any member who is an employee of an affiliating employer pursuant to
K.S.A. 744954b and amendments thereto and has not withdrawn such member's
accumulated con tributions from the Kansas police and firemen's retirement
system may retire before such member's normal retirement date on the first
day of any month coinciding with or following the attainment of age 55.
  (4)  Any member may retire before such member's normal retirement date on
the first day of any month coinciding with or following the attainment of age
55 with the completion of 10 years of credited service, but in no event
before six months after the entry date, upon the filing with the office of
the retirement system of an application for retirement in such form and
manner as the board shall prescribe.
  (5)  If a retirant who retired on or after July 1, 1988, is employed or
appointed in or to any position or office for which compensation for service
is paid, during calendar years 1988 through 1990, in an amount equal to
$6,000 or more in any one such calendar year; during calendar year 1991, in
an amount equal to $9,720 or more; during calendar year 1992, in an amount
equal to $10,200 or more; during calendar year 1993, in an amount equal to
$10,560 or more; during calendar year 1994, in an amount equal to $11,160 or
more; or during calendar year 1995 and all calendar years thereafter, in
an amount equal to $11,280 $14,000 or more in any one such
calendar year, by any participating employer for which such retirant was
employed or appointed during the final two years of such retirant's par
ticipation, such retirant shall not receive any retirement benefit for any
month for which such retirant serves in such position or office. The
participating employer shall report to the system within 30 days of when the
compensation paid to the retirant is equal to or exceeds any limitation
provided by this section. Any retirant employed by a participating
employer shall not make contributions nor receive additional credit under
such system for such service except as provided by this section. Upon request
of the executive secretary of the system, the secretary of revenue shall
provide such information as may be needed by the executive secretary to carry
out the provisions of this act. The provisions of this subsection shall not
apply to retirants employed as substitute teachers or officers, employees,
appointees or members of the legislature or any other elected officials.
  (6)  For purposes of this section, any employee of a local governmental
unit which has its own pension plan who becomes an employee of a
participating employer as a result of a merger or consolidation of services
provided by local governmental units, which occurred on January 1, 1994, may
count service with such local governmental unit in determining whether such
employee has met the years of credited service requirements contained in this
section.'';
  And by renumbering sections accordingly;

506                          JOURNAL OF THE SENATE

  On page 23, after line 27, by inserting:
  ``Sec. 18.  K.S.A. 1996 Supp. 74-4920 is hereby amended to read as follows:
74-4920.   (1) (a)  Upon the basis of each annual actuarial valuation
and appraisal as provided for in subsection (3)(a) of K.S.A. 74-4908 and
amendments thereto, the board shall certify, on or before July 15 of each
year, to the division of the budget in the case of the state and to the agent
for each other participating employer an actuarially determined estimate of
the rate of contribution which will be required, together with all
accumulated contributions and other assets of the system, to be paid by each
such participating employer to pay all liabilities which shall exist or
accrue under the system, including amortization of the actuarial accrued
liability over a period of 40 years commencing on July 1, 1993, and the
actuarial accrued liability for members of the faculty and other persons who
are employed by the state board of regents or by educational institutions
under its management assisted by the state board of regents in the purchase
of retirement annuities as provided in K.S.A. 74-4925 and amend ments
thereto, as provided in this section. The actuarial accrued liability for all
participating employers other than the state board of regents relating to
members of the faculty and other persons described in this section, shall be
amortized by annual payments that increase 4% for each year remaining in the
amortization period. For all participating employers other than the state
board of regents relating to members of the faculty and other persons de
scribed in this section, the projected unit credit actuarial cost method
shall be used in annual actuarial valuations, commencing with the 1993
valuation, to determine the employer con tribution rates that shall be
certified by the board. The actuarial accrued liability for mem bers of the
faculty and other persons described in this subsection assisted by the state
board of regents in the purchase of retirement annuities as provided in
K.S.A. 74-4925 and amend ments thereto shall be amortized by annual level
payments over a period of 10 years com mencing July 1, 1993. Such certified
rate of contribution shall be based on the standards set forth in subsection
(3)(a) of K.S.A. 74-4908 and amendments thereto and shall not be based on any
other purpose outside of the needs of the system.
  (b) (i)  For employers affiliating on and after January 1, 1998, upon
the basis of an annual actuarial valuation and appraisal of the system
conducted in the manner provided for in K.S.A. 74-4908 and amendments
thereto, the board shall certify, on or before July 15 of each year to each
such employer an actuarially determined estimate of the rate of contribution
which shall be required to be paid by each such employer to pay all of the
liabilities which shall accrue under the system from and after the entry date
as determined by the board, upon recommendation of the actuary. Such rate
shall be termed the employer's participating service contribution and shall
be uniform for all participating employers. Such additional liability shall
be amortized over a period of 35 years commencing on July 1, 1998, by annual
payments that increase 4% for each year remaining in the amortization period.
For all participating employers described in this section, the projected unit
credit actuarial cost method shall be used in annual actuarial valuations to
determine the employer contribution rates that shall be certified by the
board.
  (ii)  The board shall determine for each such employer separately an amount
sufficient to amortize over a period of not to exceed 35 years commencing
July 1, l998, all liabilities for prior service costs which shall have
accrued at the time of entry into the system. On the basis of such
determination the board shall annually certify to each such employer
separately an actuarially determined estimate of the rate of contribution
which shall be required to be paid by that employer to pay all of the
liabilities for such prior service costs. Such rate shall be termed the
employer's prior service contribution.
  (2)  The division of the budget and the governor shall include in the
budget and in the budget request for appropriations for personal services the
sum required to satisfy the state's obligation under this act as certified by
the board and shall present the same to the legislature for allowance and
appropriation.
  (3)  Each other participating employer shall appropriate and pay to the
system a sum sufficient to satisfy the obligation under this act as certified
by the board.
  (4)  Each participating employer is hereby authorized to pay the employer's
contribution from the same fund that the compensation for which such
contribution is made is paid from or from any other funds available to it for
such purpose. Each political subdivision, other than an instrumentality of
the state, which is by law authorized to levy taxes for other

                                 March 31, 1997                             507

purposes, may levy annually at the time of its levy of taxes, a tax which may
be in addition to all other taxes authorized by law for the purpose of making
its contributions under this act and, in the case of cities and counties, to
pay a portion of the principal and interest on bonds issued under the
authority of K.S.A. 12-1774 and amendments thereto by cities lo cated in the
county, which tax, together with any other fund available, shall be
sufficient to enable it to make such contribution. In lieu of levying the tax
authorized in this subsection, any taxing subdivision may pay such costs from
any employee benefits contribution fund established pursuant to K.S.A.
12-16,102 and amendments thereto. Each participating em ployer which is not
by law authorized to levy taxes as described above, but which prepares a
budget for its expenses for the ensuing year and presents the same to a
governing body which is authorized by law to levy taxes as described above,
may include in its budget an amount sufficient to make its contributions
under this act which may be in addition to all other taxes authorized by law.
Such governing body to which the budget is submitted for approval, may levy a
tax sufficient to allow the participating employer to make its contri butions
under this act, which tax, together with any other fund available, shall be
sufficient to enable the participating employer to make the contributions
required by this act.
  (5)  The rate of contribution certified to a participating employer as
provided in this section shall apply during the fiscal year of the
participating employer which begins in the second calendar year following the
year of the actuarial valuation. For the fiscal year com mencing in calendar
year 1993, the employer rate of contribution for the state of Kansas and for
participating employers under K.S.A. 74-4931 and amendments thereto shall be
3.1% of the amount of compensation upon which members contribute during the
period. For the fiscal year commencing in calendar year 1994, the employer
rate of contribution for the state of Kansas and for participating employers
under K.S.A. 74-4931 and amend ments thereto shall be 3.2% of the amount of
compensation upon which members contribute during the period. For the fiscal
year commencing in calendar year 1994, the employer rate of contribution for
participating employers other than the state of Kansas shall be 2.2% of the
amount of compensation upon which members contribute during the period.
Except as specifically provided in this section, for the fiscal year
commencing in calendar year 1995, the rate of contribution certified to a
participating employer shall in no event exceed such participating employer's
contribution rate for the immediately preceding fiscal year by more than 0.1%
of the amount of compensation upon which members contribute during the
period. Except as specifically provided in this section, for fiscal years
commencing in cal endar year 1996 and in each subsequent calendar year, the
rate of contribution certified to the state of Kansas shall in no event
exceed the state's contribution rate for the immediately preceding fiscal
year by more than 0.2% of the amount of compensation upon which mem bers
contribute during the period. Except as specifically provided in this
section, for fiscal years commencing in calendar year 1997 and in each
subsequent calendar year, the rate of contribution certified to participating
employers other than the state of Kansas shall in no event exceed such
participating employer's contribution rate for the immediately preceding
fiscal year by more than 0.15% of the amount of compensation upon which
members con tribute during the period. There shall be an employer rate of
contribution certified to the state of Kansas and participating employers
under K.S.A. 74-4931 and amendments thereto. There shall be a separate
employer rate of contribution certified to all other participating employers
other than the state of Kansas.
  (6)  The actuarial cost of any legislation enacted in the 1994 session of
the Kansas leg islature will be included in the June 30, 1994, actuarial
valuation in determining contribution rates for participating employers.
  (7)  The board with the advice of the actuary may fix the contribution
rates for partici pating employers joining the system after one year from the
first entry date or for employers who exercise the option contained in K.S.A.
74-4912 and amendments thereto at rates different from the rate fixed for
employers joining within one year of the first entry date.
  (8)  For employers affiliating on and after January 1, 1998, the rates
of contribution certified to the participating employer as provided in this
section shall apply during the fiscal year immediately following such
certification, but the rate of contribution during the first year following
the employer's entry date shall be equal to 7% of the amount of com pensation
on which members contribute during the year. Any amount of such first year's

508                          JOURNAL OF THE SENATE

contribution which may be in excess of the necessary current service
contribution shall be credited by the board to the respective employer's
prior service liability.
  (8)(9)  Employer contributions shall in no way be limited by
any other act which now or in the future establishes or limits the
compensation of any member.
  (9)(10)  Each participating employer shall remit quarterly, or
as the board may otherwise provide, all employee deductions and required
employer contributions to the executive secretary for credit to the Kansas
public employees retirement fund within 20 days after the end of the period
covered by the remittance or within 25 days after forms or written
instructions from the system were mailed by the system to such employer,
whichever is later. Remittances of such deductions and contributions received
after such date are delin quent. Delinquent payments due under this
subsection shall be subject to interest at the rate established for interest
on judgments under subsection (a) of K.S.A. 16-204 and amend ments thereto.
At the request of the board, delinquent payments which are due or interest
owed on such payments, or both, may be deducted from any other moneys payable
to such employer by any department or agency of the state.
  Sec. 19.  K.S.A. 1996 Supp. 74-4921 is hereby amended to read as follows:
74-4921. (1) There is hereby created in the state treasury the Kansas public
employees retirement fund. All employee and employer contributions shall be
deposited in the state treasury to be credited to the Kansas public employees
retirement fund. The fund is a trust fund and shall be used solely for the
exclusive purpose of providing benefits to members and member beneficiaries
and defraying reasonable expenses of administering the fund. Investment in
come of the fund shall be added or credited to the fund as provided by law.
All benefits payable under the system, refund of contributions and
overpayments, purchases or invest ments under the law and expenses in
connection with the system unless otherwise provided by law shall be paid
from the fund. The director of accounts and reports is authorized to draw
warrants on the state treasurer and against such fund upon the filing in the
director's office of proper vouchers executed by the chairperson or the
executive secretary of the board. As an alternative, payments from the fund
may be made by credits to the accounts of recipients of payments in banks,
savings and loan associations and credit unions. A pay ment shall be so made
only upon the written authorization and direction of the recipient of payment
and upon receipt of such authorization such payments shall be made in
accordance therewith. Orders for payment of such claims may be contained on
(a) a letter, memoran dum, telegram, computer printout or similar writing, or
(b) any form of communication, other than voice, which is registered upon
magnetic tape, disc or any other medium designed to capture and contain in
durable form conventional signals used for the electronic com munication of
messages.
  (2)  The board shall have the responsibility for the management of the fund
and shall discharge the board's duties with respect to the fund solely in the
interests of the members and beneficiaries of the system for the exclusive
purpose of providing benefits to members and such member's beneficiaries and
defraying reasonable expenses of administering the fund and shall invest and
reinvest moneys in the fund and acquire, retain, manage, including the
exercise of any voting rights and disposal of investments of the fund within
the limitations and according to the powers, duties and purposes as
prescribed by this section.
  (3)  Moneys in the fund shall be invested and reinvested to achieve the
investment objective which is preservation of the fund to provide benefits to
members and member beneficiaries, as provided by law and accordingly
providing that the moneys are as productive as possible, subject to the
standards set forth in this act. No moneys in the fund shall be invested or
reinvested if the sole or primary investment objective is for economic devel
opment or social purposes or objectives.
  (4)  In investing and reinvesting moneys in the fund and in acquiring,
retaining, man aging and disposing of investments of the fund, the board
shall exercise the judgment, care, skill, prudence and diligence under the
circumstances then prevailing, which persons of prudence, discretion and
intelligence acting in a like capacity and familiar with such matters would
use in the conduct of an enterprise of like character and with like aims by
diversifying the investments of the fund so as to minimize the risk of large
losses, unless under the circumstances it is clearly prudent not to do so,
and not in regard to speculation but in

                                 March 31, 1997                             509

regard to the permanent disposition of similar funds, considering the
probable income as well as the probable safety of their capital.
  (5)  Notwithstanding subsection (4): (a) Total investments in common stock
may be made in the amount of up to 60% of the total book value of the fund;
  (b)  the board may invest or reinvest moneys of the fund in alternative
investments if the following conditions are satisfied:
  (i)  The total of such alternative investments does not exceed more than 5%
of the total investment assets of the fund. If the total of such alternative
investments exceeds more than 5% of the total investment assets of the fund
on the effective date of this act, the board shall not invest or reinvest any
moneys of the fund in alternative investments until the total of such
alternative investments is less the 5% of the total investment assets of the
fund subject to the 5% limitation contained in this subsection. Nothing in
this subsection requires the board to liquidate or sell the system's holdings
in any alternative investment held by the system on the effective date of
this act, unless such liquidation or sale would be in the best interest of
the members and beneficiaries of the system and be prudent under the
standards contained in this section. The 5% limitation contained in this
section shall not have been violated if the total of such alternative
investments exceeds 5% of the total investment assets of the fund as a result
of market forces acting to increase the value of such alternative investments
relative to the rest of the system's investments; however, the board shall
not invest or reinvest any moneys of the fund in alternative investments
until the total of such alternative investments is less than 5% of the total
investment assets of the fund subject to the 5% limitation contained in this
subsection;
  (ii)  if in addition to the system, there are at least two other
sophisticated investors, as defined by section 301 of the securities and
exchange act of 1933;
  (iii)  the system's share in any individual alternative investment is
limited to an invest ment representing not more than 20% of any such
individual alternative investment;
  (iv)  the system has received a favorable and appropriate recommendation
from a qual ified, independent expert in investment management or analysis in
that particular type of alternative investment;
  (v)  the alternative investment is consistent with the system's investment
policies and objectives as provided in subsection (6);
  (vi)  the individual alternative investment does not exceed more than 2.5%
of the total alternative investments made under this subsection. If the
alternative investment is made pursuant to participation by the system in a
multi-investor pool, the 2.5% limitation con tained in this subsection is
applied to the underlying individual assets of such pool and not to
investment in the pool itself. The total of such alternative investments made
pursuant to participation by the system in any one individual multi-investor
pool shall not exceed more than 20% of the total of alternative investments
made by the system pursuant to this sub section. Nothing in this subsection
requires the board to liquidate or sell the system's hold ings in any
alternative investments made pursuant to participation by the system in any
one individual multi-investor pool held by the system on the effective date
of this act, unless such liquidation or sale would be in the best interest of
the members and beneficiaries of the system and be prudent under the
standards contained in this section. The 20% limitation contained in this
subsection shall not have been violated if the total of such investment in
any one individual multi-investor pool exceeds 20% of the total alternative
investments of the fund as a result of market forces acting to increase the
value of such a multi-investor pool relative to the rest of the system's
alternative investments; however, the board shall not invest or reinvest any
moneys of the fund in any such individual multi-investor pool until the value
of such individual multi-investor pool is less than 20% of the total
alternative investments of the fund;
  (vii)  the board has received and considered the investment manager's due
diligence findings submitted to the board as required by subsection (6)(c);
and
  (viii)  prior to the time the alternative investment is made, the system
has in place pro cedures and systems to ensure that the investment is
properly monitored and investment performance is accurately measured.
  For purposes of this act, ``alternative investment'' means nontraditional
investments out side the established nationally recognized public stock
exchanges and government securities

510                          JOURNAL OF THE SENATE

market. Alternative investments shall include, but not be limited to, private
placements, venture capital, partnerships, limited partnerships and leveraged
buyout partnerships;
  (c)  except as otherwise provided, the board may invest or reinvest moneys
of the fund in real estate investments if the following conditions are
satisfied:
  (i)  If, in addition to the system, there are at least two other
sophisticated investors, as defined by section 301 of the securities and
exchange act of 1933;
  (ii)  the system's share in any individual real estate investment is
limited to an investment representing not more than 20% of any such
individual real estate investment;
  (iii)  The system has received a favorable and appropriate
recommendation from a qual ified, independent expert in investment management
or analysis in that particular type of real estate investment;
  (iv) (ii)  the real estate investment is consistent with the
system's investment policies and objectives as provided in subsection (6);
and
  (v)  the total of such real estate investments made pursuant to
participation by the system in any one individual multi-investor pool shall
not exceed more than 20% of the total of real estate investments made by the
system pursuant to this subsection. Nothing in this subsec tion requires the
board to liquidate or sell the system's holdings in any real estate
investments made pursuant to participation by the system in any one
individual multi-investor pool held by the system on the effective date of
this act, unless such liquidation or sale would be in the best interest of
the members and beneficiaries of the system and be prudent under the
standards contained in this section. The 20% limitation contained in this
subsection shall not have been violated if the total of such investment in
any one individual multi-investor pool exceeds 20% of the total real estate
investments of the fund as a result of market forces acting to increase the
value of such a multi-investor pool relative to the rest of the system's real
estate investments; however, the board shall not invest or reinvest any
moneys of the fund in any such individual multi-investor pool until the value
of such individual multiinvestor pool is less than 20% of the total real
estate investments of the fund;
  (vi) (iii)  the board has received and considered the investment
manager's due diligence findings submitted to the board as required by
subsection (6)(c);
  (vii)  prior to the time the real estate investment is made, the system
has in place pro cedures and systems to ensure that the investment is
properly monitored and investment performance is accurately measured; and
  (viii)  the provisions of this subsection shall not apply to any real
estate investment held by the system on July 1, 1992; and
  (d)  the board shall not invest or reinvest moneys of the fund in any
banking institution, savings and loan association or credit union which
positions the system as a shareholder or owner of such banking institution,
savings and loan association or credit union.
  (6)  Subject to the objective set forth in subsection (3) and the standards
set forth in subsections (4) and (5) the board shall formulate policies and
objectives for the investment and reinvestment of moneys in the fund and the
acquisition, retention, management and disposition of investments of the
fund. Such policies and objectives shall include:
  (a)  Specific asset allocation standards and objectives;
  (b)  establishment of criteria for evaluating the risk versus the potential
return on a particular investment;
  (c)  a requirement that all investment managers submit such manager's due
diligence findings on each investment to the board or investment advisory
committee for approval or rejection prior to making any alternative
investment;
  (d)  a requirement that all investment managers shall immediately report
all instances of default on investments to the board and provide the board
with recommendations and options, including, but not limited to, curing the
default or withdrawal from the investment; and
  (e)  establishment of criteria that would be used as a guideline for
determining when no additional add-on investments or reinvestments would be
made and when the investment would be liquidated.
  The board shall review such policies and objectives, make changes
considered necessary or desirable and readopt such policies and objectives on
an annual basis.

                                 March 31, 1997                             511

  (7)  The board may enter into contracts with one or more persons whom the
board determines to be qualified, whereby the persons undertake to perform
the functions spec ified in subsection (2) to the extent provided in the
contract. Performance of functions under contract so entered into shall be
paid pursuant to rates fixed by the board subject to pro visions of
appropriation acts and shall be based on specific contractual fee
arrangements. The system shall not pay or reimburse any expenses of persons
contracted with pursuant to this subsection, except that after approval of
the board, the system may pay approved in vestment related expenses subject
to provisions of appropriation acts. The board shall re quire that a person
contracted with to obtain commercial insurance which provides for errors and
omissions coverage for such person in an amount to be specified by the board,
provided that such coverage shall be at least the greater of $500,000 or 1%
of the funds entrusted to such person up to a maximum of $10,000,000. The
board shall require a person contracted with to give a fidelity bond in a
penal sum as may be fixed by law or, if not so fixed, as may be fixed by the
board, with corporate surety authorized to do business in this state. Such
persons contracted with the board pursuant to this subsection and any persons
contracted with such persons to perform the functions specified in subsection
(2) shall be deemed to be agents of the board and the system in the
performance of contractual obligations.
  (8) (a)  In the acquisition or disposition of securities, the board may
rely on the written legal opinion of a reputable bond attorney or attorneys,
the written opinion of the attorney of the investment counselor or managers,
or the written opinion of the attorney general certifying the legality of the
securities.
  (b)  The board shall employ or retain qualified investment counsel or
counselors or may negotiate with a trust company to assist and advise in the
judicious investment of funds as herein provided.
  (9) (a)  Except as provided in subsection (7) and this subsection, the
custody of money and securities of the fund shall remain in the custody of
the state treasurer, except that the board may arrange for the custody of
such money and securities as it considers advisable with one or more member
banks or trust companies of the federal reserve system or with one or more
banks in the state of Kansas, or both, to be held in safekeeping by the banks
or trust companies for the collection of the principal and interest or other
income or of the proceeds of sale. The services provided by the banks or
trust companies shall be paid pur suant to rates fixed by the board subject
to provisions of appropriation acts.
  (b)  The state treasurer and the board shall collect the principal and
interest or other income of investments or the proceeds of sale of securities
in the custody of the state treasurer and pay same when so collected into the
fund.
  (c)  The principal and interest or other income or the proceeds of sale of
securities as provided in clause (a) of this subsection (9) shall be reported
to the state treasurer and the board and credited to the fund.
  (10)  The board shall with the advice of the director of accounts and
reports establish the requirements and procedure for reporting any and all
activity relating to investment functions provided for in this act in order
to prepare a record monthly of the investment income and changes made during
the preceding month. The record will reflect a detailed summary of
investment, reinvestment, purchase, sale and exchange transactions and such
other information as the board may consider advisable to reflect a true
accounting of the investment activity of the fund.
  (11)  The board shall provide for an examination of the investment program
annually. The examination shall include an evaluation of current investment
policies and practices and of specific investments of the fund in relation to
the objective set forth in subsection   (3), the standard set forth in
subsection (4) and other criteria as may be appropriate, and recommendations
relating to the fund investment policies and practices and to specific
investments of the fund as are considered necessary or desirable. The board
shall include in its annual report to the governor as provided in K.S.A.
74-4907, and amendments thereto, a report or a summary thereof covering the
investments of the fund.
  (12) (a)  The legislative post auditor shall conduct an annual
financial-compliance audit of the system, performance audits of the system as
prescribed by this section and under the Kansas governmental operations law,
and such other audits as are directed by the legislative post audit committee
under the Kansas legislative post audit act. The annual financial

512                          JOURNAL OF THE SENATE

compliance audit shall include, but not be limited to, a review of
alternative investments of the system with any estimates of permanent
impairments to the value of such alternative investments reported by the
system pursuant to K.S.A. 74-4907, and amendments thereto.
  (b)  Except as otherwise provided by this subsection, the legislative post
auditor shall conduct annual performance audits, as directed by the
legislative post audit committee, which shall include, but not be limited to,
one or more of the following subjects: An eval uation of the performance of
investment managers, an evaluation of the rates of return of investments
reported by the system, an evaluation of the total compensation received for
the planned year by investment managers by individual investment
classification, and a comparison of the system's investment practices and
performance with the investment prac tices and performance of other state
pension programs by asset type, including all asset types described as
alternative investments in subsection (5)(b). Commencing with the per
formance audit for the fiscal year ending June 30, 1994, the legislative post
audit committee shall specify which of the subjects listed in this subsection
shall be included in each per formance audit conducted pursuant to this
subsection, in addition to such other subjects as may be directed to be
included in the performance audit by the legislative post audit com mittee.
Commencing with the performance audit for the fiscal year ending June 30,
1994, each of the subjects listed in this subsection shall be included at
least once every two fiscal years in a performance audit conducted pursuant
to this subsection, excluding any fiscal year during which the system and the
board are subject to review and evaluation by the legislature under the
Kansas governmental operations accountability law. Except as other wise
directed by the legislative post audit committee, no performance audit shall
be con ducted pursuant to this subsection during any fiscal year when the
system and the board are subject to a performance audit and to review and
evaluation under the Kansas govern mental operations accountability law.
  (c)  The auditor to conduct any audit required pursuant to this subsection
shall be spec ified in accordance with K.S.A. 46-1122, and amendments
thereto. If the legislative post audit committee specifies under such statute
that a firm, as defined by K.S.A. 46-1112, and amendments thereto, is to
perform all or part of the audit work of such audit, such firm shall be
selected and shall perform such audit work as provided in K.S.A. 46-1123, and
amendments thereto, and K.S.A. 46-1125 through 46-1127, and amendments
thereto. The audits required pursuant to this subsection shall be conducted
in accordance with generally accepted governmental auditing standards. The
audits required pursuant to this subsection shall be conducted as soon after
the close of the fiscal year as practicable, but shall be completed no later
than six months after the close of the fiscal year. The post auditor shall
annually compute the reasonably anticipated cost of providing the
financial-compliance audit pursuant to this section, subject to review and
approval by the contract audit committee established by K.S.A. 46-1120, and
amendments thereto. Upon such approval, the system shall reimburse the
division of post audit for the amount approved by the contract audit
committee. The furnishing of the financial-compliance audit pursuant to this
section shall be a transaction between the legislative post auditor and the
system and shall be settled in accordance with the provisions of K.S.A.
75-5516, and amendments thereto.
  (d)  Any internal assessment or examination of alternative investments of
the system performed by any person or entity employed or retained by the
board which evaluates or monitors the performance of alternative investments
shall be reported to the legislative post auditor so that such report may be
reviewed in accordance with the annual audits provided in subsection (12)(a).
  Sec. 20.  K.S.A. 1996 Supp. 74-4927 is hereby amended to read as follows:
74-4927. (1) The board may establish a plan of death and long-term disability
benefits to be paid to the members of the retirement system as provided by
this section. The long-term disability benefit shall not be payable until the
member has been prevented from carrying out each and every duty pertaining to
the member's employment as a result of sickness or injury for a period of 180
days and. The annual benefit shall not exceed an amount equal to
66 2/3% of the member's annual rate of compensation on the date such
disability commenced and shall be payable in equal monthly installments. In
the event that a member's compensation is not fixed at an annual rate but on
an hourly, weekly, biweekly, monthly or any other basis than annual, the
board shall prescribe by rule and regulation a formula for establishing a

                                 March 31, 1997                             513

reasonable rate of annual compensation to be used in determining the amount
of the death or long-term disability benefit for such member. Such plan shall
provide that:
  (A)  For deaths occurring prior to January 1, 1987, the right to receive
such death benefit shall cease upon the member's attainment of age 70 or date
of retirement whichever first occurs. The right to receive such long-term
disability benefit shall cease (i) for a member who becomes eligible for such
benefit before attaining age 60, upon the date that such member attains age
65 or the date of such member's retirement, whichever first occurs, (ii) for
a member who becomes eligible for such benefit at or after attaining age 60,
the date that such member has received such benefit for a period of five
years, upon the date that such member attains age 70, or upon the date of
such member's retirement, whichever first occurs, (iii) for all disabilities
incurred on or after January 1, 1987, for a member who becomes eligible for
such benefit at or after attaining age 70, the date that such member has
received such benefit for a period of 12 months or upon the date of such
member's retirement, whichever first occurs, and (iv) for all disabilities
incurred on or after January 1, 1987, for a member who becomes eligible for
such benefit at or after attaining age 75, the date that such member has
received such benefit for a period of six months or upon the date of such
member's retirement, whichever first occurs.
  (B)  Long-term disability benefit payments shall be in lieu of any
accidental total disa bility benefit that a member may be eligible to receive
under subsection (3) of K.S.A. 744916 and amendments thereto. The member
must make an initial application for social security disability benefits and,
if denied such benefits, the member must pursue and exhaust all
administrative remedies of the social security administration which include,
but are not limited to, reconsideration and hearings. Such plan may
provide that any amount which a member receives as a social security benefit
or a disability benefit or compensation from any source by reason of any
employment including, but not limited, to, workers compen sation
benefits may be deducted from the amount of insured long-term
disability benefit payments under such plan, except that not more than 50%
of such workers compensation benefits shall be deducted therefrom.
During the period in which such member is pursuing such administrative
remedies prior to a final decision of the social security administration,
social security disability benefits may be estimated and may be deducted from
the amount of long-term disability benefit payments under such plan. Such
insured long-term disability payments shall accrue from the later
of the 181st day of total disability or the first day upon which the member
ceases to draw compensation from the employer. If the social security
benefit, workers compensation benefit, other income or wages or other
disability benefit by reason of employment, or any part thereof, is paid in a
lump sum, the amount of the reduction shall be calculated on a monthly basis
over the period of time for which the lump sum is given. In no case shall a
member who is entitled to receive insured long-term disability
benefits receive less than $50 per month. As used in this section, ``workers
compensation benefits'' means the total award of disability benefit payments
under the workers compen sation act notwithstanding any payment of attorney
fees from such benefits as provided in the workers compensation act.
  (C)  The plan may include other provisions relating to qualifications for
benefits; sched ules and graduation of benefits; limitations of eligibility
for benefits by reason of termination of employment or membership; conversion
privileges; limitations of eligibility for benefits by reason of leaves of
absence, military service or other interruptions in service; limitations on
the condition of long-term disability benefit payment by reason of improved
health; requirements for medical examinations or reports; or any other
reasonable provisions as established by rule and regulation of uniform
application adopted by the board.
  (D)  On and after April 30, 1981, the board may provide under the plan for
the contin uation of long-term disability benefit payments to any former
member who forfeits the entitlement to continued service credit under the
retirement system or continued assistance in the purchase of retirement
annuities under K.S.A. 74-4925 and amendments thereto and to continued
long-term disability benefit payments and continued death benefit coverage,
by reason of the member's withdrawal of contributions from the retirement
system or the repurchase of retirement annuities which were purchased with
assistance received under K.S.A. 74-4925 and amendments thereto. Such
long-term disability benefit payments may

514                          JOURNAL OF THE SENATE

be continued until such individual dies, attains age 65 or is no longer
disabled, whichever occurs first.
  (E)  Any visually impaired person who is in training at and employed by a
sheltered workshop for the blind operated by the secretary of social and
rehabilitation services and who would otherwise be eligible for the
insured long-term disability benefit as described in this section
shall not be eligible to receive such benefit due to visual impairment as
such impairment shall be determined to be a preexisting condition.
  (2) (A)  In the event that a member becomes eligible for a long-term
disability benefit under the plan authorized by this section such member
shall be given participating service credit for the entire period of such
disability. Such member's final average salary shall be computed in
accordance with subsection (17) of K.S.A. 74-4902 and amendments thereto
except that the years of participating service used in such computation shall
be the years of salaried participating service.
  (B)  In the event that a member eligible for a long-term disability benefit
under the plan authorized by this section shall be disabled for a period of
five years or more immediately preceding retirement, such member's final
average salary shall be adjusted upon retirement by the actuarial salary
assumption rates in existence during such period of disability. Effec tive
July 1, 1993, such member's final average salary shall be adjusted upon
retirement by 5% for each year of disability after July 1, 1993, but
before July 1, 1997.  Effective July 1, 1997, such member's final
average salary shall be adjusted upon retirement by an amount equal to the
lesser of: (i) The percentage increase in the consumer price index for all
urban consumers as published by the bureau of labor statistics of the United
States department of labor minus one percent; or (ii) four percent per annum,
measured from the month the disability occurs to the month that is two months
prior to the month of retirement, for each year of disability after July 1,
1997.
  (C)  In the event that a member eligible for a long-term disability benefit
under the plan authorized by this section shall be disabled for a period of
five years or more immediately preceding death, such member's current annual
rate shall be adjusted by the actuarial salary assumption rates in existence
during such period of disability. Effective July 1, 1993, such member's
current annual rate shall be adjusted upon death by 5% for each year of
disability after July 1, 1993, but before July 1, 1997.  Effective
July 1, 1997, such member's current annual rate shall be adjusted upon death
by an amount equal to the lesser of: (i) The per centage increase in the
consumer price index for all urban consumers published by the bureau of labor
statistics of the United States department of labor minus one percent; or
(ii) four percent per annum, measured from the month the disability occurs to
the month that is two months prior to the month of death, for each year of
disability after July 1, 1997.
  (3) (A)  To carry out the legislative intent to provide, within the funds
made available therefor, the broadest possible coverage for members who are
in active employment or involuntarily absent from such active employment, the
plan of death and long-term disability benefits shall be subject to
adjustment from time to time by the board within the limitations of this
section. The plan may include terms and provisions which are consistent with
the terms and provisions of group life and long-term disability policies
usually issued to those employers who employ a large number of employees. The
board shall have the authority to establish and adjust from time to time the
procedures for financing and administering the plan of death and long-term
disability benefits authorized by this section. Either the insured death
benefit or the insured disability benefit or both such benefits may be
financed directly by the system or by one or more insurance companies
authorized and licensed to transact group life and group accident and health
insurance in this state.
  (B)  The board may contract with one or more insurance companies, which are
author ized and licensed to transact group life and group accident and health
insurance in Kansas, to underwrite or to administer or to both underwrite and
administer either the insured longterm death benefit or the
insured disability benefit or both such benefits. Each such contract with an
insurance company under this subsection shall be entered into on the basis of
competitive bids solicited and administered by the board. Such competitive
bids shall be based on specifications prepared by the board.
  (i)  In the event the board purchases one or more policies of group
insurance from such company or companies to provide either the insured death
benefit or the insured long-term

                                 March 31, 1997                             515

disability benefit or both such benefits, the board shall have the authority
to subsequently cancel one or more of such policies and, notwithstanding any
other provision of law, to release each company which issued any such
canceled policy from any liability for future benefits under any such policy
and to have the reserves established by such company under any such canceled
policy returned to the system for deposit in the group insurance reserve of
the fund.
  (ii)  In addition, the board shall have the authority to cancel any policy
or policies of group life and long-term disability insurance in existence on
the effective date of this act and, notwithstanding any other provision of
law, to release each company which issued any such canceled policy from any
liability for future benefits under any such policy and to have the reserves
established by such company under any such canceled policy returned to the
system for deposit in the group insurance reserve of the fund.
Notwithstanding any other provision of law, no premium tax shall be due or
payable by any such company or companies on any such policy or policies
purchased by the board nor shall any brokerage fees or commissions be paid
thereon.
  (4) (A)  The cost of the plan of death and long-term disability benefits
shall be paid from a special reserve hereby created in the fund, to be known
as the group insurance reserve. Each participating employer shall appropriate
and pay to the system in such manner as the board shall prescribe in addition
to the employee and employer retirement contri butions an amount equal to .6%
of the amount of compensation on which the members' contributions to the
Kansas public employees retirement system are based for deposit in the group
insurance reserve of the Kansas public employees retirement fund.
  (B)  The director of the budget and the governor shall include in the
budget and in the budget request for appropriations for personal services a
sum to pay the state's contribution to the group insurance reserve as
provided by this section and shall present the same to the legislature for
allowances and appropriation.
  (C)  The provisions of subsection (4) of K.S.A. 74-4920 and amendments
thereto shall apply for the purpose of providing the funds to make the
contributions to be deposited to the group insurance reserve.
  (D)  Any dividend or retrospective rate credit allowed by an insurance
company or com panies shall be credited to the group insurance reserve and
the board may take such amounts into consideration in determining the amounts
of the benefits under the plan authorized by this section.
  (5)  The death benefit provided under the plan of death and long-term
disability benefits authorized by this section shall be known and referred to
as insured death benefit. The long-term disability benefit provided under the
plan of death and long-term disability ben efits authorized by this section
shall be known and referred to as insured long-term disability
benefit.
  (6)  The board is hereby authorized to establish an optional death benefit
plan. Except as provided in subsection (7), such optional death benefit plan
shall be made available to all employees who are covered or may hereafter
become covered by the plan of death and long-term disability benefits
authorized by this section. The cost of the optional death benefit plan shall
be paid by the applicant either by means of a system of payroll deductions or
direct payment to the board. The board shall have the authority and
discretion to establish such terms, conditions, specifications and coverages
as it may deem to be in the best interest of the state of Kansas and its
employees which should include term death benefits for the person's period of
active state employment regardless of age, but in no case, on and after
January 1, 1989, shall the maximum allowable coverage be less than $200,000.
The cost of the optional death benefit plan shall not be established on such
a basis as to unreasonably discriminate against any particular age group. The
board shall have full administrative re sponsibility, discretion and
authority to establish and continue such optional death benefit plan and the
director of accounts and reports of the department of administration shall
when requested by the board and from funds appropriated or available for such
purpose establish a system to make periodic deductions from state payrolls to
cover the cost of the optional death benefit plan coverage under the
provisions of this subsection (6) and shall remit all deductions together
with appropriate accounting reports to the system. All funds received by the
board, whether in the form of direct payments, payroll deductions or
otherwise, shall

516                          JOURNAL OF THE SENATE

be accounted for separately from all other funds of the retirement system and
shall be paid into a special reserve hereby created in the fund, to be known
as the optional death benefit plan reserve, from which reserve the board is
authorized to make the appropriate payments and to pay the ongoing costs of
administration of such optional death benefit plan as may be incurred in
carrying out the provisions of this subsection (6).
  (7)  Any employer other than the state of Kansas which is currently a
participating em ployer of the Kansas public employees retirement system or
is in the process of affiliating with the Kansas public employees retirement
system may also elect to affiliate for the pur poses of subsection (6). All
such employers shall make application for affiliation with such system, to be
effective on January 1 next following application. Such optional death
benefit plan shall not be available for employees of employers specified
under this subsection until after July 1, 1988.
  Sec. 21.  K.S.A. 1996 Supp. 74-4952 is hereby amended to read as follows:
74-4952. As used in K.S.A. 74-4951 et seq. and amendments thereto:
  (1)  ``Accumulated contributions'' means the sum of all contributions by a
member to the system which shall be credited to the member's account with
interest allowed thereon after June 30, 1982.
  (2)  ``Disability'' means the total inability to perform permanently the
duties of the po sition of a policeman or fireman.  Disability will not
include a disability which is the result of a sickness or injury which
occurred within 12 months of the member's membership date in the system if
the member received any diagnosis of or treatment or service for such
sickness or injury during the three-month period immediately preceding the
member's membership in the system. Diagnosis will include but not be limited
to the findings of any sickness or injury contained in the certification
provided in subsection (4).
  (3)  ``Eligible employer'' means any city, county, township or other
political subdivision of the state employing one or more employees as firemen
or policemen.
  (4)  ``Employee'' means any policeman or fireman employed by a
participating employer whose employment for police or fireman purposes is not
seasonal or temporary and requires at least 1,000 hours of work per year
and who has been certified to be mentally and physically capable of
performing the duties of a policeman or fireman by one or more physicians or
any other practitioners of the healing arts holding a valid license issued by
the Kansas state board of healing arts. Such certification will be made
available to the board as the board may require. Such certification shall be
completed after a conditional offer of employment has been given to the
person if the person otherwise is so qualified. If such employee is not so
certified, such person shall not be an employee for purposes under this act
and shall not be a member of the system.
  (5)  ``Entry date'' means the date as of which an eligible employer joins
the system; the first entry date pursuant to this act is January 1, 1967.
  (6)  ``Final average salary'' means:
  (a)  For members who are first hired as an employee, as defined in
subsection (4), before July 1, 1993, the average highest annual compensation
paid to a member for any three of the last five years of participating
service immediately preceding retirement or termination of employment, or if
participating service is less than three years, then the average annual
compensation paid to the member during the full period of participating
service, or if a member has less than one calendar year of participating
service, then the member's final average salary shall be computed by
multiplying the member's highest monthly salary re ceived in that year by 12;
  (b)  for members who are first hired as an employee, as defined in
subsection (4), on and after July 1, 1993, the average highest annual salary,
as defined in subsection (34) of K.S.A. 74-4902 and amendments thereto, paid
to a member for any three of the last five years of participating service
immediately preceding retirement or termination of employ ment, or if
participating service is less than three years, then the average annual
salary, as defined in subsection (34) of K.S.A. 74-4902 and amendments
thereto, paid to the member during the full period of participating service,
or if a member has less than one calendar year of participating service, then
the member's final average salary shall be computed by multiplying the
member's highest monthly salary received in that year by 12;

                                 March 31, 1997                             517

  (c)  for purposes of subparagraphs (a) and (b) of this subsection, the date
that such member is first hired as an employee for members who are employees
of employers that elected to participate in the system on or after January 1,
1994, shall be the date that such employee's employer elected to participate
in the system; and
  (d)  for any application to purchase or repurchase service credit for a
certain period of service as provided by law received by the system after May
17, 1994, for any member who will have contributions deducted from such
member's compensation at a percentage rate equal to two or three times the
employee's rate of contribution or who will have contribu tions deducted from
such member's compensation at an additional rate of contribution, in addition
to the employee's rate of contribution as provided in K.S.A. 74-4919 and
amend ments thereto or will begin paying to the system a lump-sum amount for
such member's purchase or repurchase, and such deductions or lump-sum payment
commences after the commencement of the first payroll period in the third
quarter, ``final average salary'' shall not include any amount of
compensation or salary which is based on such member's pur chase or
repurchase. Any application to purchase or repurchase multiple periods of
service shall be treated as multiple applications.
  (7)  ``Retirement benefit'' means a monthly income or the actuarial
equivalent thereof paid in such manner as specified by the member as provided
under the system or as oth erwise allowed to be paid at the discretion of the
board, with benefits accruing from the first day of the month coinciding with
or following retirement and ending on the last day of the month in which
death occurs. Upon proper identification such surviving spouse may negotiate
the warrant issued in the name of the retirant.
  (8)  ``Normal retirement date'' means the date on or after which a member
may retire with eligibility for retirement benefits for age and service as
provided in subsections (1) and   (3) of K.S.A. 74-4957 and amendments
thereto;
  (9)  ``Retirement system'' or ``system'' means the Kansas police and
firemen's retirement system as established by this act and as it may be
hereafter amended.
  (10)  ``Service-connected'' means with regard to a death or any physical or
mental dis ability, any such death or disability resulting from external
force, violence or disease occa sioned by an act of duty as a policeman or
fireman and, for any member after five years of credited service, includes
any death or disability resulting from a heart disease or disease of the lung
or respiratory tract or cancer as provided in this subsection, except that in
the event that the member ceases to be a contributing member except by reason
of a serviceconnected disability for a period of six months or more and then
again becomes a contrib uting member, the provision relating to death or
disability resulting from a heart disease, disease of the lung or respiratory
tract or cancer as provided in this subsection shall not apply until such
member has again become a contributing member for a period of not less than
two years or unless clear and precise evidence is presented that the heart
disease, disease of the lung or respiratory tract or cancer as provided in
this subsection was in fact occasioned by an act of duty as a policeman or
fireman. The provisions of this section relating to the presumption that the
death or disability resulting from cancer is service-connected shall only
apply if the condition that caused the death or disability is a type of
cancer which may, in general, result from exposure to heat, radiation or a
known carcinogen.
  (11)  ``Fireman'' or ``firemen'' means an employee assigned to the fire
department and engaged in the fighting and extinguishment of fires and the
protection of life and property therefrom or in support thereof and who is
specifically designated, appointed, commissioned or styled as such by the
governing body or city manager of the participating employer and certified to
the retirement system as such.
  (12)  ``Police,'' ``policeman'' or ``policemen'' means an employee assigned
to the police department and engaged in the enforcement of law and
maintenance of order within the state and its political subdivisions,
including sheriffs and sheriffs' deputies, or in support thereof and who is
specifically designated, appointed, commissioned or styled as such by the
governing body or city manager of the participating employer and certified to
the re tirement system as such.
  (13)  Except as otherwise defined in this act, words and phrases used in
K.S.A. 74-4951 et seq. and amendments thereto, shall have the same meanings
ascribed to them as are defined in K.S.A. 74-4902 and amendments thereto.

518                          JOURNAL OF THE SENATE

  Sec. 22.  K.S.A. 1996 Supp. 74-4957 is hereby amended to read as follows:
74-4957. (1) The normal retirement date for a member of the system who is
appointed or employed prior to July 1, 1989, and who does not make an
election pursuant to K.S.A. 74-4955a and amendments thereto shall be
the first day of the month coinciding with or following the attainment of age
55 and the completion of 20 years of credited service. Any member may retire
on such member's normal retirement date or on the first day of any month
thereafter.
  (2)  Early retirement. Any member who is appointed or employed prior
to July 1, 1989, and who does not make an election pursuant to K.S.A.
74-4955a and amendments thereto may retire before such member's normal
retirement date on the first day of any month coinciding with or following
the attainment of age 50 and the completion of 20 years of credited service.
  (3)  Notwithstanding the provisions of subsections (1) and (2) of this
section and K.S.A. 74-4955a, 74-4957a, 74-4958a, 74-4960a, 74-4963a and
74-4964a and amendments thereto, the normal retirement date for any member
who was, up to the entry date of such member's employer, covered by a pension
system under the provisions of K.S.A. 13-14a01 to 13-14a14, inclusive, or
14-10a01 to 14-10a15, inclusive, and amendments thereto, shall be the first
day of the month coinciding with or following the attainment of age 50 and
the completion of 25 years of credited service.
  (4)  In no event shall a member be eligible to retire until such member has
been a contributing member of the system for 12 months of participating
service, and shall have given such member's employer prior notice of
retirement.
  (5)  If a retirant who retired on or after July 1, 1994, is employed,
elected or appointed in or to any position or office for which compensation
for service is paid, during calendar year 1994, in an amount equal to
$11,160 or more; or during calendar year 1995 and all calendar years
thereafter, in an amount equal to $11,280 $14,000 or more in
any one such calendar year, by the same state agency or the same police or
fire department of any county, city, township or special district or the same
sheriff's office of a county during the final two years of such retirant's
participation, such retirant shall not receive any retirement benefit for any
month for which such retirant serves in such position or office. The
participating employer shall report to the system within 30 days of when the
compensation paid to the retirant is equal to or exceeds any limitation
provided by this section. Any retirant employed by a participating
employer in the Kansas police and firemen's retirement system shall not make
contributions nor receive additional credit under such system for such
service except as provided by this section. Upon request of the executive
secretary of the system, the secretary of revenue shall provide such
information as may be needed by the executive secretary to carry out the
provisions of this act.
  Sec. 23.  K.S.A. 1996 Supp. 74-4957a is hereby amended to read as follows:
74-4957a.   (1) The normal retirement date for a member of the system who is
appointed or employed on or after July 1, 1989, or who makes an election
pursuant to K.S.A. 74-4955a and amend ments thereto to be covered by the
provisions of this act shall be the first day of the month coinciding with or
following the attainment of age 55 and the completion of 20 years of credited
service, age 50 and the completion of 25 years of credited service or age 60
with the completion of 15 years of credited service. Any such member may
retire on such mem ber's normal retirement date or on the first day of any
month thereafter.
  (2)  Any member may retire before such member's normal retirement date on
the first day of any month coinciding with or following the attainment of age
50 and the completion of 20 years of credited service.
  (3)  In no event shall a member be eligible to retire until such member has
been a contributing member of the system for 12 months of participating
service, and shall have given such member's employer prior notice of
retirement.
  (4)  If a retirant who retired on or after July 1, 1996, is employed,
elected or appointed in or to any position or office for which compensation
for service is paid, during calendar year 1995 and all calendar years
thereafter, in an amount equal to $11,280 $14,000 or more in
any one such calendar year, by the same state agency or the same police or
fire department of any county, city, township or special district or the same
sheriff's office of a county during the final two years of such retirant's
participation, such retirant shall not receive any retire ment benefit for
any month for which such retirant serves in such position or office. The

                                 March 31, 1997                             519

participating employer shall report to the system within 30 days of when the
compensation paid to the retirant is equal to or exceeds any limitation
provided by this section. Any retirant employed by a participating
employer in the Kansas police and firemen's retirement system shall not make
contributions nor receive additional credit under such system for such
service except as provided by this section. Upon request of the executive
secretary of the system, the secretary of revenue shall provide such
information as may be needed by the executive secretary to carry out the
provisions of this act.
  (5)  The provisions of this section shall be effective on and after July 1,
1989, and shall apply only to members who were appointed or employed prior to
July 1, 1989, and who made an election pursuant to K.S.A. 74-4955a and
amendments thereto; and persons ap pointed or employed on or after July 1,
1989.
  Sec. 24.  K.S.A. 1996 Supp. 74-4966 is hereby amended to read as follows:
74-4966. (a) In the case of any member whose employment shall be covered by
social security and who is a member of the class certified in the case of
Brazelton v. Kansas public employees retirement system, 227 K. 443, 607 P.2d
510 (1980), any benefits payable under the pro visions of K.S.A. 74-4958,
74-4959 and 74-4960 shall be reduced by an amount equal to 1/2 of the
original social security benefits accruing from employment with the
participating employer at the time the member retired. For any member already
retired on the effective date of this act, no reduction of the original
social security benefits shall be applicable to benefits paid prior to the
effective date of this act. The member must make an initial ap plication
for social security benefits from employment with the participating employer
and, if denied such benefits, the member must pursue and exhaust all
administrative remedies of the social security administration which include,
but are not limited to, reconsideration and hearings. Until such initial
application for benefits has been approved by the social security
administration, social security benefits may be estimated and may be deducted
from the amount of any benefits payable as provided in this subsection.
  (b)  For any member other than a member who is a member of the class
certified in the case of Brazelton v. Kansas public employees retirement
system, 227 K. 443, 607 P.2d 510 (1980), no benefits shall be reduced because
of social security benefits. Any benefits which first become payable on or
after January 1, 1976, by reason of employment with a partici pating employer
participating in the Kansas police and firemen's retirement system, which
employment was also covered by social security, shall be reduced by an amount
equal to the value of the difference between contributions actually made by
the member and con tributions which would have been made had there been no
reduction for contributions to social security. The amount of reduction shall
be made by the board upon the advice of the actuary at the time benefits
become payable and shall continue until benefits are no longer payable.
Should a member, whose employment prior to January 1, 1976, with a
participating employer participating in the Kansas police and firemen's
retirement system, such employ ment also being covered by social security,
repay in a lump sum prior to January 1, 1977, or on date of retirement,
whichever is earlier, an amount equal to the difference between contributions
actually made by the member and contributions which would have been made had
there been no reduction for contributions to social security, there shall be
no reduction as heretofore provided. If the payment is made after January 1,
1977, but prior to retirement, the member will pay the actual amount plus
interest which shall accrue from January 1, 1976, at a rate specified by the
board of trustees.
  Sec. 25.  K.S.A. 1996 Supp. 74-4990 is hereby amended to read as follows:
74-4990. (1) An arrearage obligation shall arise when it is ascertained that
required contributions have not been made to the Kansas public employees
retirement system at the required time. Such arrearage obligation shall be
met by the employer by preparing a report on the ap propriate form to correct
all previous quarterly reports affected by the arrearage obligation.
Such report shall be submitted by the employer with the first quarterly
report after such an arrearage obligation is discovered or as the board of
trustees of the system may otherwise prescribe. The proper remittance to
cover employer and employee contributions in arrearage shall accompany
such report or as the board of trustees of the system may otherwise pre
scribe for all arrearages other than for the year of service as provided
in K.S.A. 74-4911 and amendments thereto. In addition, the employer will pay
to the system, interest at the current actuarial interest rate assumption
adopted by the board. If the employee retires

520                          JOURNAL OF THE SENATE

within 24 months of the employer first reporting this arrearage, the employer
will pay to the system a lump sum amount equal to the difference of the
actuarial present value of the retirement benefit and the accumulated value
of any contributions represented by the ar rearage. No employee shall pay all
or any part of the arrearage. The amounts due for an arrearage obligation
shall be based upon the compensation paid to the member and at the rates in
effect at the time the contributions were originally due to be paid to the
system. The employer shall not be required to pay the employee
contributions or interest on arrear ages of six month or less.
  (2)  An arrearage obligation shall arise when it is ascertained that the
employee and employer should have made contributions to the Kansas public
employees retirement system for all or part of the year of service as
provided in K.S.A. 74-4911 and amendments thereto. Such arrearage obligation
shall be met by the employer by preparing a report on the ap propriate form
to correct all previous reports affected by the arrearage obligation. Such
report shall be submitted by the employer with the first report after such an
arrearage obligation is discovered or as the board of trustees of the system
may otherwise prescribe. The proper remittance to cover employer
contributions in arrearage shall accompany such report or as the board of
trustees of the system may otherwise prescribe. The amounts due for an
arrearage obligation shall be based upon compensation paid to the member and
at the rates in effect at the time contributions were originally due to be
paid to the system.
  (2)(3)  In the event the proper remittance to cover employee
contributions in arrearage does not accompany such report, service credits
for that period of employment involving the arrearage obligation may be
purchased by the member as participating service at any time prior to
retirement by making application therefor and paying to the system a single
lump-sum amount determined by the system's actuary using (a) the member's
then current annual rate of compensation, or if not actively employed, the
member's annual rate of compensation when last participating and (b) the
actuarial assumptions and tables currently in use by the system.
  (3)(4)  Except as otherwise provided in this section, any
member may purchase partic ipating service credits for that period of
employment involving the arrearage obligation as described in this section,
if first commenced prior to January 1, 1996, by electing to effect such
purchase by means of having employee contributions as provided in K.S.A.
74-4919 and amendments thereto deducted from such member's compensation at a
percentage rate equal to two times or three times the employee's rate of
contribution as provided in K.S.A. 74-4919 and amendments thereto for such
periods of service, in lieu of a lump-sum amount as provided in this section.
Such deductions shall commence at the beginning of the quarter following such
election and shall remain in effect until all quarters of such service have
been purchased. Any person may make any such purchase as described in this
section, if first commenced in calendar year 1996 or thereafter, at an
additional rate of contribution, in addition to the employee's rate of
contribution as provided in K.S.A. 74-4919 and amend ments thereto, based
upon the member's attained age at the time of purchase and using actuarial
assumptions and tables in use by the retirement system at such time of
purchase, for such periods of service, in lieu of a lump-sum amount as
provided in this section. Such additional rate of contribution shall commence
at the beginning of the quarter following such election and shall remain in
effect until all quarters of such service have been pur chased.
  (4)(5)  Notwithstanding the provisions of this section, no
employee contributions shall be due and owing for stipulated compensation
amounts paid to any employee or former employee of a city of the first class
whose dispute with such city was settled by stipulation of settlement either
in Case No. 90-2328-0 in the United States District Court for the District of
Kansas or in Case No. 91-1182 in the Supreme Court of the United States. Any
such employee or former employee may elect to remit such employee
contributions to the system. No employee or former employee whose
contributions are deemed not to be due or owing or who did not elect to remit
such employee contributions to the system as provided in this section
according to this provision shall have any claim against the Kansas public
employees retirement system for any retirement, disability, death or
survivors benefit or any return of accumulated contributions based on such
contributions or on the compensation amounts that would have been reflected
by such contributions.'';

                                 March 31, 1997                             521

  And by renumbering sections accordingly;
  On page 24, after line 29, by inserting:
  ``New Sec. 27.  (1) Notwithstanding the provisions of subsection (9) of
K.S.A. 74-4902 and amendments thereto, any payment for accumulated sick
leave, vacation or annual leave, severance pay or any other payments to the
member determined by the board to not be payments for personal services
performed for a participating employer which, when upon retirement, increases
the member's final average salary by more than 15%, shall require the
participating employer to pay the system a lump sum amount equal to the
system's actuarial liability for benefits attributable to and payable on
account of such excess over the 15%.
  (2)  As used in this section, ``system'' means the Kansas public employees
retirement system, the Kansas police and firemen's retirement system and the
retirement system for judges.
  New Sec. 28.  Any employee of a participating employer who is a member of
the Kansas public employees retirement system, who was previously employed in
Kansas in nonfederal governmental employment with an employer who has not
affiliated with the system under K.S.A. 74-4910 and amendments thereto, and
which service otherwise meets the require ments of an employee as prescribed
in subsection (14) of K.S.A. 74-4902 or subsection (4) of K.S.A. 74-4932 and
amendments thereto, may elect to purchase participating service for such
in-state nonfederal governmental employment. The benefit for each such year
of em ployment shall be equal to 1% of the final average salary of any such
member.  Such member may purchase such participating service by making
application therefor prior to the date of retirement at an additional rate of
contribution in addition to the employee's rate of con tribution as provided
in K.S.A. 74-4919 and amendments thereto, based upon the member's attained
age at the time of purchase and using actuarial assumptions and tables in use
by the retirement system at the time of such purchase. Such additional rate
of contribution shall commence at the beginning of the quarter following such
election and shall remain in effect until all quarters of such service have
been purchased. Any such member may pur chase such participating service as
described in this section by electing to effect such pur chase by means of a
single lump sum payment in lieu of employee contributions as provided in this
section in an amount equal to the then present value of the benefits being
purchased as determined by the actuary using the member's attained age,
annual compensation at the time of purchase and the actuarial assumptions and
tables then in use by this system. The lump sum payment shall be made
immediately upon being notified of the amount due. No purchase of service or
any part thereof will be nullified by the subsequent affiliation of an
employer with the system.'';
  And by renumbering sections accordingly;
  Also on page 24, in line 30, after ``9.'' by inserting ``K.S.A. 20-2609,
20-2610, 20-2620 and 72-5501 and''; also in line 30, after ``74-4902,'' by
inserting ``74-4904, 74-4905, 74-4908, 744910, 74-4911f,''; also in line 30,
after ``74-4913,'' by inserting ``74-4914,''; in line 31, by striking ``and''
and inserting a comma; also in line 31, after ``74-4919h'' by inserting ``,
744920, 74-4921, 74-4927, 74-4952, 74-4957, 74-4957a, 74-4966 and 74-4990'';
  On page 1, in the title, in line 9, after ``concerning'' by inserting
``retirement and pensions; relating to''; also in line 9, after ``system'' by
inserting ``and systems thereunder''; in line 10, by striking ``relating
to''; in line 11, by striking ``participating''; also in line 11, after
``credit;'' by inserting ``district magistrate judges; state school
retirement system; benefits and contri butions; arrearages; long-term
disability benefits and retirement annuity for disabled judges; annual final
average salary adjustment; real estate investment standards; elected board
mem bers; hearing officers; earnings after retirement;''; also in line 11,
after ``amending'' by in serting ``K.S.A. 20-2609, 20-2610, 20-2620 and
72-5501 and''; in line 12, after ``4902,'' by inserting ``74-4904, 74-4905,
74-4908, 74-4910, 74-4911f,''; also in line 12, after ``74-4913,'' by
inserting ``74-4914,''; also in line 12, by striking ``and'' the first time
it appears and inserting a comma; also in line 12, after ``74-4919h'' by
inserting ``, 74-4920, 74-4921, 744927, 74-4952, 74-4957, 74-4957a, 74-4966
and 74-4990''; and the bill be passed as amended.
  SB 383 be amended on page 1, by striking all in lines 16 through 43;
  By striking all of pages 2 and 3;
  On page 4, by striking all in lines 1 through 10;

522                          JOURNAL OF THE SENATE

  And by renumbering sections accordingly;
  On page 1, in the title, in line 10, by striking all after ``employees;'';
in line 11, by striking all before ``amending''; and the bill be passed as
amended.

REPORT ON ENROLLED BILLS

  SB 10, 32, 60, 110, 133, 205 reported correctly enrolled, properly signed
and presented to the Governor on March 31, 1997.
  SR 1838, 1839, 1840, 1841, 1842, 1843 reported correctly enrolled,
properly signed and presented to the Secretary of the Senate on March 31,
1997.

COMMITTEE OF THE WHOLE

  On motion of Senator Emert, the Senate resolved itself into Committee of
the Whole for consideration of bills on the calendar under the heading of
General Orders with Senator Praeger in the chair.
  On motion of Senator Praeger the following report was adopted:
  Recommended that HB 2159, appearing on General Orders without
recommendation, be amended by motion of Senator Hardenburger on page 9, in
line 27, following ``weapons'' by inserting ``by a person licensed in
accordance with the provisions of this act''.
  Upon the showing of five hands a roll call vote was requested.
  On roll call, the vote was: Yeas 21, nays 18, present and passing 1; absent
or not voting 0.
  Yeas: Barone, Bleeker, Brownlee, Clark, Donovan, Feleciano, Gilstrap,
Hardenburger, Harrington, Huelskamp, Jordan, Lawrence, Morris, Pugh, Ranson,
Salmans, Schraad, Stei neger, Tyson, Umbarger, Vidricksen.
  Nays: Becker, Biggs, Bond, Corbin, Downey, Emert, Gooch, Goodwin, Jones,
Karr, Kerr, Langworthy, Lee, Oleen, Petty, Praeger, Salisbury, Steffes.
  Present and passing: Hensley.
  The motion carried and the amendment was adopted.
  The bill be amended by motion of Senator Goodwin on page 3, in line 9, by
striking ``and''; in line 11, by striking the period and inserting ``; and'';
following line 11, by inserting:
  ``(12)  is not in contempt of court in a child support proceeding.''
  The bill be amended by motion of Senator Emert on page 7, following line
30, by in serting:
  ``(c)  It is a class B nonperson misdemeanor for any person licensed
pursuant to this act to carry a concealed weapon into any place prohibited
under this section.''
  Upon the showing of five hands a roll call vote was requested.
  On roll call, the vote was: Yeas 31, nays 9, present and passing 0; absent
or not voting 0.
  Yeas: Barone, Becker, Biggs, Bond, Clark, Corbin, Downey, Emert, Gooch,
Goodwin, Hardenburger, Harrington, Jones, Jordan, Karr, Kerr, Langworthy,
Lawrence, Lee, Morris, Oleen, Petty, Praeger, Ranson, Salisbury, Salmans,
Schraad, Steffes, Tyson, Umbarger, Vidricksen.
  Nays: Bleeker, Brownlee, Donovan, Feleciano, Gilstrap, Hensley, Huelskamp,
Pugh, Stei neger.
  The motion carried and the amendment was adopted.
  The bill be amended by motion of Senator Lee on page 7, in line 18, before
``Nothing'' by inserting ``(a)''; in line 19, by striking ``(a)'' and
inserting ``(1)''; in line 24, by striking ``(b)'' and inserting ``(2)'';
after line 30, by inserting:
  ``(b)  It is a misdemeanor punishable by a fine of not more than $1,000 for
a person to:
  (1)  Carry a concealed weapon onto premises described in subsection (a) if
such premises are posted, in a manner reasonably likely to come to the
attention of persons entering the premises, as premises where carrying a
concealed weapon is prohibited; or
  (2)  abuse, threaten or harass another person because premises under such
other per son's control or on which such other person is employed are posted
as premises where carrying a concealed weapon is prohibited.''
  Senator Kerr moved to amend the bill on page 7, by striking out all of
lines 6, 7, and 8; and renumbering the subsequent subparagraphs as
appropriate.

                                 March 31, 1997                             523

  In accordance with Senate Rule 68, a motion was made to suspend Senate Rule
41: ``No more than five roll calls shall be taken upon any bill under
consideration in the Committee of the Whole.'' Two thirds of the members
having failed to vote in favor of the motion, Senate Rule 41 was not
suspended.
  The Committee recommended the amendment offered by Senator Kerr be adopted.
  The Committee recommended HB 2159 be passed as amended.
  The following amendment offered by Senator Emert to HB 2159 was
adopted, recon sidered and withdrawn:
on page 6, in line 38, before ``No'' by inserting ``(a)''; in line 40, by
striking ``(a)'' and inserting ``(1)''; in line 42, by striking ``(b)'' and
inserting ``(2)''; in line 43, by striking ``(c)'' and inserting ``(3)'';
  On page 7, in line 1, by striking ``(d)'' and inserting ``(4)''; in line 2,
by striking ``(e)'' and inserting ``(5)''; in line 5, by striking ``(f)'' and
inserting ``(6)''; in line 6, by striking ``(g)'' and inserting ``(7)''; in
line 8, by striking ``(h)'' and inserting ``(8)''; in line 9, by striking
``(i)'' and inserting ``(9)''; in line 11, by striking ``(j)'' and inserting
``(10)''; in line 14, by striking ``(k)'' and inserting ``(11)''; in line 15,
by striking ``(l)'' and inserting ``(12)''; in line 16, by striking ``(m)''
and inserting ``(13)''; following line 17, by inserting:
  ``(b)  It is a class B nonperson select misdemeanor for any person licensed
pursuant to this act to carry a concealed weapon into any place prohibited
under subsection (a).'';
  On page 7, following line 30, by inserting:
  ``(c)  It is a class B nonperson misdemeanor for any person licensed
pursuant to this act to carry a concealed weapon into any place prohibited
under this section.''
  The amendment was withdrawn.
  The following amendments offered to HB 2159 were rejected:
  Senator Oleen moved to amend the bill on page 1, in line 23, by striking
``17'' and inserting ``18''; in line 28, by striking ``1998'' and inserting
``1999''; in line 42, by striking ``1998'' and inserting ``1999'';
  On page 5, in line 20, by striking all after ``application''; by striking
all of line 21; in line 22, by striking all before ``within''; in line 23, by
striking all after ``(b)''; in line 24, by striking all before the period;
  On page 7, after line 14, by inserting:
  ``(l)  in any county where the carrying of such weapon is not authorized
pursuant to section 13;'';
  Also on page 7, by relettering the remaining subsections accordingly; after
line 33, by inserting:
  ``New Sec. 13.  (a) The board of county commissioners of each county shall
submit to the qualified electors of the county at the state primary election
in 1998 a proposition to allow the carrying of concealed weapons within the
county by persons licensed pursuant to this act.
  (b)  The county election officer shall cause the following proposition to
be placed on the ballot at the state primary election in 1998:
  ``Shall licensed persons be allowed to carry concealed weapons within
____________ county?''
  (c)  If a majority of the votes cast and counted is in favor of allowing
licensed persons to carry concealed weapons within the county, a license
issued pursuant to this act shall authorize the licensee to carry a concealed
weapon in the county. If a majority of the votes cast and counted is opposed
to allowing licensed persons to carry concealed weapons in the county, a
license issued pursuant to this act shall not authorize the licensee to carry
a concealed weapon in the county.
  (d)  The election provided for by this section shall be conducted, and the
votes counted and canvassed, in the manner provided by law for question
submitted elections of the county.'';
  By renumbering the remaining sections accordingly;
  On page 11, in line 41, by striking ``17'' and inserting ``18''.
  Upon the showing of five hands a roll call vote was requested.

524                          JOURNAL OF THE SENATE

  On roll call, the vote was: Yeas 16, nays 24, present and passing 0; absent
or not voting 0.
  Yeas: Becker, Bond, Corbin, Downey, Emert, Gooch, Goodwin, Jones, Karr,
Kerr, Lang worthy, Lee, Oleen, Petty, Praeger, Steffes.
  Nays: Barone, Biggs, Bleeker, Brownlee, Clark, Donovan, Feleciano,
Gilstrap, Harden burger, Harrington, Hensley, Huelskamp, Jordan, Lawrence,
Morris, Pugh, Ranson, Salis bury, Salmans, Schraad, Steineger, Tyson,
Umbarger, Vidricksen.
  The motion failed and the amendment was rejected.
  Senator Praeger moved to amend the bill on page 7, following line 30, by
inserting:
  ``New Sec. 12.  Any person licensed pursuant to this act who discharges a
weapon in such a manner that results in the unintended death, personal injury
or property damage shall be negligent per se and subject to civil liability
for such death, injury or damage.'';
  By renumbering sections accordingly.
  The amendment was rejected.
  Senator Praeger moved to amend the bill on page 7, following line 30, by
inserting:
  ``New Sec. 12.  (a) No person shall be licensed or re-licensed in this
state pursuant to this act unless the person, during the licensing period,
has continuously in effect a policy of liability insurance satisfying the
requirements of subsection (b) and providing liability cov erage for the
licensee in the use of a weapon. When a licensee certifies that such
liability insurance is in effect, the bureau may require the licensee or such
licensee's insurance company to produce records to prove the fact that such
insurance was in effect at the time the license was issued and has been
maintained continuously from that date. Failure to produce such records shall
be prima facie evidence that the licensee or applicant has no liability
insurance as required herein.
  (b)  The liability insurance policy required herein shall contain stated
limits of liability, exclusive of interest and costs, with respect to each
licensee or applicant, not less than $25,000 because of bodily injury to, or
death of, one person in any one incident and, subject to the limit for one
person, to a limit of not less than $50,000 because of bodily injury to, or
death of, two or more persons in any one incident, and to a limit of not less
than $10,000 because of harm to or destruction of property of others in any
one incident.
  (c)  Whenever the bureau receives prima facie evidence, as prescribed by
this section, that continuous liability insurance is not in effect, the
bureau shall notify the licensee by registered or certified mail or United
States post office certificate of mailing that, at the end of 30 days after
the notice is mailed, the licensee's license issued shall be suspended, pur
suant to such rules and regulations adopted by the bureau unless: (1) Within
the thirty-day period, the licensee demonstrates proof of continuous
liability insurance as required; or (2) within the thirty-day period such
licensee shall request a hearing with the bureau.'';
  By renumbering sections accordingly.
  Upon the showing of five hands a roll call vote was requested.
  On roll call, the vote was: Yeas 18, nays 21, present and passing 1; absent
or not voting 0.
  Yeas: Becker, Biggs, Bond, Downey, Emert, Gooch, Goodwin, Hensley, Jones,
Karr, Kerr, Langworthy, Lee, Oleen, Petty, Praeger, Salisbury, Steffes.
  Nays: Barone, Bleeker, Brownlee, Clark, Donovan, Feleciano, Gilstrap,
Hardenburger, Harrington, Huelskamp, Jordan, Lawrence, Morris, Pugh, Ranson,
Salmans, Schraad, Stei neger, Tyson, Umbarger, Vidricksen.
  Present and passing: Corbin.
  The motion failed and the amendment was rejected.
  Senator Jones moved to amend the bill on page 7, in line 15, by striking
``or'' where it appears for the second time; following line 15, by inserting:
  ``(m)  any city, county or state park or any city, county or state
recreational facility or area; or'';
  Also on page 7, in line 16, by striking ``(m)'' and inserting ``(n)''.
  Upon the showing of five hands a roll call vote was requested.
  On roll call, the vote was: Yeas 20, nays 20, present and passing 0; absent
or not voting 0.

                                 March 31, 1997                             525

  Yeas: Barone, Becker, Biggs, Bond, Corbin, Downey, Emert, Feleciano, Gooch,
Goodwin, Hensley, Jones, Karr, Kerr, Langworthy, Lee, Oleen, Petty, Praeger,
Steffes.
  Nays: Bleeker, Brownlee, Clark, Donovan, Gilstrap, Hardenburger,
Harrington, Huel skamp, Jordan, Lawrence, Morris, Pugh, Ranson, Salisbury,
Salmans, Schraad, Steineger, Tyson, Umbarger, Vidricksen.
  The motion failed and the amendment was rejected.
  Senator Oleen moved to amend the bill on page 7, following line 30, by
inserting:
  ``New Sec. 12.  It is a class A nonperson misdemeanor for a person licensed
pursuant to this act to carry a concealed weapon into the residence or
dwelling place of another without the express written permission of the owner
or person in legal control or possession of such residence or dwelling
place.'';
  By renumbering sections accordingly.
  In accordance with Senate Rule 68, a motion was made to suspend Senate Rule
41: ``No more than five roll calls shall be taken upon any bill under
consideration in the Committee of the Whole.'' Two thirds of the members
having failed to vote in favor of the motion, Senate Rule 41 was not
suspended.
  The amendment was rejected.
  Senator Steineger moved to amend the bill on page 4, following line 7, by
inserting:
  ``(d)  Any honorably discharged veteran or retiree from the United States
armed forces shall not be required to comply with the training requirements
of this section.''
  The amendment was rejected.
  Senator Steineger moved to amend the bill on page 5, after line 27, by
inserting:
  ``(e)  At the time of issuance of a license pursuant to this act, the
bureau shall issue to the licensee a trigger-locking device to be placed on
the licensee's weapon. The cost of such device shall be paid by the
licensee.'';
  Also on page 5, by relettering subsection (e) accordingly;
  On page 7, in line 32, after the second ``to'' by inserting ``:
  (a)  Fail to lock the trigger of the licensee's weapon at any time when the
weapon is not in the licensee's immediate possession; or
  (b)''.
  The amendment was rejected.
  Senator Becker moved to amend the bill on page 7, in line 15, by striking
``or'' where it appears for the second time; following line 15, by inserting:
  ``(m)  any shopping mall; or''
  Also on page 7, in line 16, by striking ``(m)'' and inserting ``(n)''.
  The amendment was rejected.
  Senator Jones moved to amend the bill on page 10, following line 3, by
inserting:
  ``New Sec. 18.  (a) Subject to the provisions of subsection (b), the bureau
shall reimburse any person licensed pursuant to this act the amount of money
expended for training required by this act. The bureau shall reimburse any
person licensed pursuant to this act the amount of money expended for the
acquisition of a weapon as defined by section 2.
  (b)  The bureau shall require any person requesting reimbursement pursuant
to subsec tion (a), to submit proof of indigency with the application
materials.
  (c)  For purposes of this section, a person is indigent if the person's
income is not more than 100 percent of the applicable income level
established by the federal poverty guide lines.'';
  By renumbering sections accordingly.
  The amendment was rejected.

FINAL ACTION OF BILLS AND CONCURRENT RESOLUTIONS

  On motion of Senator Emert an emergency was declared by a 2/3
constitutional majority, and HB 2159 was advanced to Final Action and
roll call.
  HB 2159, An act enacting the personal and family protection act;
providing for licensure to carry certain concealed weapons; prohibiting
certain acts and prescribing penalties for violations; amending K.S.A. 1996
Supp. 12-4516, 21-4201 and 21-4619 and repealing the existing sections, was
considered on final action.

526                          JOURNAL OF THE SENATE

  On roll call, the vote was: Yeas 22, nays 18, present and passing 0; absent
or not voting 0.
  Yeas: Barone, Bleeker, Brownlee, Clark, Donovan, Feleciano, Gilstrap,
Hardenburger, Harrington, Hensley, Huelskamp, Jordan, Lawrence, Morris, Pugh,
Ranson, Salmans, Schraad, Steineger, Tyson, Umbarger, Vidricksen.
  Nays: Becker, Biggs, Bond, Corbin, Downey, Emert, Gooch, Goodwin, Jones,
Karr, Kerr, Langworthy, Lee, Oleen, Petty, Praeger, Salisbury, Steffes.
  The bill passed, as amended.
                              EXPLANATION OF VOTE
  Mr. President: I came to the legislature determined to represent my
district in matters at the state level. I did not come to take away their
right to decide issues at the local level. I can not vote to pre-empt, or
take away, the right of the citizens in my district or any district, to
decide their fate as the guns.
  I came here to reduce state government not to add 12 FTE and to create
another level of bureaucracy only to promote a false sense of security.
  I am convinced that this issue is not desired by the general public or a
majority of our constituents, but by special interest groups only interested
in selling guns.
  Mr. President, I vote NO.--Tim Emert
  Senators Biggs, Corbin, Downey, Goodwin and Oleen request the record to
show they concur with the ``Explanation of Vote'' offered by Senator Emert on
HB 2159.
  Mr. President: One of our founding fathers, James Madison, said:
  ``Americans have the right and advantage of being armed--unlike citizens of
other coun tries whose governments are afraid to trust people with arms.''
  I trust the citizens of Kansas, so I vote `aye'.--Tim Huelskamp
  Senators Bleeker, Gilstrap, Harrington request the record to show they
concur with the ``Explanation of Vote'' offered by Senator Huelskamp on HB
2159.
  Mr. President: When the poor are excluded in our deliberations or not given
consid eration, I have to vote no on this issue. I feel the poor are as
entitled as any other person. I believe this bill systematically excludes the
poor.--Sherman Jones
  Mr. President: I oppose this bill because it takes away local control, adds
to the state bureaucracy, adds to the budget and because a substantial
majority of my constituents do not want it.--Dave Kerr
  On motion of Senator Emert the Senate adjourned until 10:00 a.m., Tuesday,
April 1, 1997.
                                           HELEN A. MORELAND, Journal Clerk.
PAT SAVILLE, Secretary of the Senate.
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