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


                                SIXTY-FIFTH DAY
                                    --------


                                                SENATE CHAMBER, TOPEKA,
     KANSAS
                                             Saturday, May 3, 1997--10:00 a.m.

  The Senate was called to order by President Dick Bond.
  The roll was called with thirty-nine senators present.
  Senator Gooch was excused.
  President Bond served as guest chaplain and gave the invocation:
     Let us be in an attitude of prayer.........
     Our Father God.......
     The Senate comes to order this day with hope that we will conclude our
   labor together for this session.
     We give thanks for the high honor and great privilege it is to serve in
   this place... We thank you for the gift of strength, wisdom and civility.
     Give us a sense of humility and yet the boldness to be caring advocates
   for those who sent us here.
     Thank you for the friendships we make in this chamber, the sharing we
   enjoy each day and the wonderful staff that supports us.
     Let us work in unison.... as we pray in unison........ the prayer you
   have taught each of us to pray........
     President Bond invited everyone to join him in the Lord's Prayer.

PRESENTATION OF PETITIONS

  The following petition was presented, read and filed:
  SP 70, by Senator Dwayne Umbarger: a petition to vote no on House
Bill 2174 and any other bill that would extend gambling and especially any
kind of partnership between the state and the racetracks, signed by Barbara
Larery and 179 other citizens of the Fourteenth District of the State of
Kansas.

CHANGE OF REFERENCE

  The President withdrew SB 50 from the Committee on Public Health and
Welfare, and referred the bill to the Committee on Ways and Means.
  The President withdrew SB 50 from the Committee on Ways and Means,
and rereferred the bill to the Committee on Public Health and Welfare.

CONFIRMATION OF APPOINTMENTS

  In accordance with Senate Rule 56, the following appointment, submitted by
the Gov ernor to the senate for confirmation, was considered.
  Senator Emert moved the following appointment be confirmed as recommended
by the Standing Senate Committee:
  On appointment to the:
Secretary, Kansas Department of Health and Environment:
  Gary R. Mitchell, serves at the pleasure of the Governor
  The vote was: Yeas 29, nays 7, present and passing 3, absent or not voting
1.

                                  May 3, 1997                               727

  Yeas: Becker, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Downey,
Emert, Har denburger, Harrington, Huelskamp, Jordan, Kerr, Langworthy,
Lawrence, Lee, Morris, Oleen, Praeger, Pugh, Ranson, Salisbury, Salmans,
Schraad, Steffes, Tyson, Umbarger, Vidricksen.
  Nays: Biggs, Feleciano, Gilstrap, Hensley, Karr, Petty, Steineger.
  Present and passing: Barone, Goodwin, Jones.
  Absent or not voting: Gooch.
  The appointment was confirmed.
                              EXPLANATION OF VOTE
  Mr. President: I vote NO on the confirmation of Gary R. Mitchell to be
Secretary of the Kansas Department of Health and Environment.
  I have serious concerns about Mr. Mitchell that convince me he is not
prepared to lead KDHE which is charged with preserving our state's
environment and protecting the health of our people.
  KDHE is an agency which employs over 950 employees with a budget in excess
of $163 million. Since Mr. Mitchell's most demanding previous experience was
as staff director of a congressional committee, I do not believe he has the
background to serve as top admin istrator of such a large agency.
  In addition, the challenges facing this agency are awesome.  Throughout
many years, KDHE has dealt with such issues as corporate farming, water
quality, hazardous waste, nursing home inspections, child immunizations and
others. Mr. Mitchell's qualifications and education are hardly sufficient to
meet these challenges.
  Finally, I find the much publicized reports of Mr. Mitchell's temper
tantrums very trou bling. His behavior in tough negotiations while working in
Congress shows a personal style that will not serve our state well as he
attempts to work with the general public and this Legislature.--Anthony
Hensley
    Mr. President: In listening to the debate over the confirmation of Mr.
Mitchell, I am disturbed by the fact that the agricultural industry has
become a punching bag. Being pro-agriculture does not mean being
anti-environmental, nor anti-people. Various sectors of the agricultural
industry are the first, second, third, fourth and fifth largest industries in
the state, but being large does not mean being anti-environmental. For
farmers are the first environmentalists; we live in it every day like no one
else. And given Mr. Mitchell's back ground in agriculture, I look forward to
him bringing sound science and common sense to the Department of Health and
Environment.--Tim Huelskamp
  Senator Bleeker requests the record to show she concurs with the
``Explanation of Vote'' offered by Senator Huelskamp.

REPORTS OF STANDING COMMITTEES

  Committee on Public Health and Welfare recommends SB 50 be
passed.

REPORT ON ENGROSSED BILLS

  SB 38, 164 reported correctly re-engrossed May 2, 1997.
  H. Sub. 69 reported correctly engrossed May 3, 1997.

ORIGINAL MOTION

  Senator Emert moved that subsection 4(k) of the Joint Rules of the Senate
and House of Representatives be suspended for the purpose of considering the
following bill: SB 50.

FINAL ACTION OF BILLS AND CONCURRENT RESOLUTIONS

  On motion of Senator Emert an emergency was declared by a 2/3
constitutional majority, and SB 50 was advanced to Final Action,
subject to amendment, debate and roll call.
  SB 50, An act concerning the legislature; relating to the joint
committee on children and families; duties; sunset; amending K.S.A. 46-2002
and 46-2003 and repealing the existing sections, was considered on final
action.
  The bill was amended by motion of Senator Oleen on page 1, in line 35,
after ``(a)'', by inserting the following: ``Oversee and evaluate specific
outcome measures of all state pro

728                          JOURNAL OF THE SENATE

grams providing services for children and families for use by state agencies
and the legis lature to assess program effectiveness.
  (b)  Coordinate and cooperate with the advisory committee on children and
families, established by the governor's executive order number 97-1, to avoid
duplication and maxi mize efforts.
  (c)'';
  And by relettering subsections ``(b)'' and ``(c)'' as ``(d)'' and ``(e)'';
  On page 2, in line 4, by striking ``2001'' and inserting ``1999''.
  On roll call, the vote was: Yeas 19, nays 20, present and passing 0; absent
or not voting 1.
  Yeas: Barone, Becker, Biggs, Downey, Emert, Feleciano, Gilstrap, Goodwin,
Hensley, Jones, Karr, Langworthy, Lee, Oleen, Petty, Praeger, Schraad,
Steineger, Vidricksen.
  Nays: Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Hardenburger,
Harrington, Huelskamp, Jordan, Kerr, Lawrence, Morris, Pugh, Ranson,
Salisbury, Salmans, Steffes, Tyson, Umbarger.
  Absent or not voting: Gooch.
  A constitutional majority having failed to vote in favor of the bill, SB
50 did not pass.
  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.

MESSAGE FROM THE HOUSE

  Announcing the House nonconcurs in Senate amendments to HB 2278,
requests a con ference and has appointed Reps. Mayans, Morrison and Henry as
conferees on the part of the House.
  The House adopts the conference committee report on SB 53.
  The House adopts the conference committee report on SB 184.
  The House adopts the conference committee report on SB 214.
  Announcing the House adopts the conference committee report on House
Substitute for SB 36.
  The House adopts the conference committee report on Senate Substitute
for HB 2082.
  The House adopts the conference committee report on HB 2055.
  Announcing the House announces the appointment of Rep. Sawyer to replace
Rep. Wel shimer as a conferee on HB 2315.

ORIGINAL MOTION

  Senator Emert moved that subsection 4(k) of the Joint Rules of the
Senate and House of Representatives be suspended for the purpose of
considering the following bill: SB 40.

CONSIDERATION OF MOTIONS TO CONCUR OR NONCONCUR

  Senator Corbin moved the Senate concur in house amendments to SB 40.
  SB 40, An act relating to the financing of public water supply projects;
amending K.S.A. 1996 Supp. 65-163d and repealing the existing section, was
considered on final action.
  On roll call, the vote was: Yeas 39, nays 0, present and passing 0; absent
or not voting 1.
  Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin,
Donovan, Downey, Emert, Feleciano, Gilstrap, Goodwin, Hardenburger,
Harrington, Hensley, Huelskamp, Jones, Jordan, Karr, Kerr, Langworthy,
Lawrence, Lee, Morris, Oleen, Petty, Praeger, Pugh, Ranson, Salisbury,
Salmans, Schraad, Steffes, Steineger, Tyson, Umbarger, Vidricksen.
  Absent or not voting: Gooch.
  The Senate concurred.

ORIGINAL MOTION

  Senator Emert moved that subsection 4(k) of the Joint Rules of the Senate
and House of Representatives be suspended for the purpose of considering the
following bills: H. Sub. for SB 36; SB 53, 184, 214; HB 2022.

                                  May 3, 1997                               729


CONFERENCE COMMITTEE REPORT

    Mr. President and Mr. Speaker: Your committee on conference on House
amend ments to SB 36, submits the following report:
  The Senate accedes to all House amendments to the bill, and your committee
on con ference further agrees to amend the bill, as printed as House
Substitute for SB No. 36 with amendments by House Committee of the Whole, as
follows:
  On page 1, in line 31, by striking ``90%'' and inserting ``95%''; in line
34, by striking ``and in each school year thereafter''; also in line 34, by
striking ``80%'' and inserting ``90%''; in line 36, after ``year'', by
inserting ``, in the 2000-01 school year, a percentage that is equal to 85%
of the percentage specified in the resolution under which the district was
authorized to adopt a local option budget in the 1996-97 school year, in the
2001-02 school year and in each school year thereafter, a percentage that is
equal to 80% of the percentage specified in the resolution under which the
district was authorized to adopt a local option budget in the 1996-97 school
year'';
  On page 3, in line 40, by striking ``The'' and inserting ``(A) Subject to
the provisions of subpart (B), the''; following line 42, by inserting the
following:
  ``(B)  In lieu of utilizing the authority granted by subpart (A) for
adoption of a local option budget, the board of a district may pass a
resolution authorizing adoption of such a budget and publish such resolution
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,
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 district prescribed
percentage. The resolution shall be published once in a newspaper having
general circulation in the school district. If no petition as specified above
is filed in accordance with the pro visions of the resolution, the board may
adopt a local option budget. If a petition is filed as provided in the
resolution, the board may notify the county election officer of the date of
an election to be held to submit the question of whether adoption of a local
option budget shall be authorized. If the board fails to notify the county
election officer within 30 days after a petition is filed, the resolution
shall be deemed abandoned and no like resolution shall be adopted by the
board within the nine months following publication of the resolution. If any
district is authorized to adopt a local option budget under this subpart, but
the board

730                          JOURNAL OF THE SENATE

of such district chooses, in any school year, not to adopt such a budget or
chooses, in any school year, to adopt such budget in an amount less than the
amount of the district pre scribed percentage of the amount of state
financial aid in any school year, such board of education may so choose. If
the board of any district refrains from adopting a local option budget in any
one or more school years or refrains from budgeting the total amount au
thorized for any one or more school years, the authority of such district to
adopt a local option budget shall not be extended by such refrainment beyond
the period specified in the resolution authorizing adoption of such budget,
nor shall the amount authorized to be budg eted in any succeeding school year
be increased by such refrainment. Whenever an initial resolution has been
adopted under this subpart, and such resolution specified a lesser per
centage than the district prescribed percentage, the board of the district
may adopt one or more subsequent resolutions under the same procedure as
provided for the initial resolution and subject to the same conditions, and
shall be authorized to increase the percentage as specified in any such
subsequent resolution for the remainder of the period of time specified in
the initial resolution. Any percentage specified in a subsequent resolution
or in subsequent resolutions shall be limited so that the sum of the
percentage authorized in the initial res olution and the percentage
authorized in the subsequent resolution or in subsequent reso lutions is not
in excess of the district prescribed percentage in any school year. The board
of any district that has been authorized to adopt a local option budget under
this subpart and levied a tax under authority of K.S.A. 72-6435, and
amendments thereto, may initiate, at any time after the final levy is
certified to the county clerk under any current authorization, procedures to
renew its authority to adopt a local option budget in the manner specified in
this subpart or may utilize the authority granted by subpart (A). As used in
this subpart, the term ``authorized to adopt a local option budget'' means
that a district has adopted a reso lution under this subpart, has published
the same, and either that the resolution was not protested or that it was
protested and an election was held by which the adoption of a local option
budget was approved.'';
  On page 4, in line 12, by striking ``a'' and inserting ``: (A) A''; in line
14, after ``district'', by inserting ``; or (B) the question of whether the
board shall be authorized to increase the local option budget has been
submitted to and approved by the qualified electors of the district at a
special election called for the purpose. Any such election shall be noticed,
called and held in the manner provided by K.S.A. 10-120, and amendments
thereto, for the no ticing, calling and holding of elections upon the
question of issuing bonds under the general bond law. The notice of such
election shall state the purpose for and time of the election, and the ballot
shall be designed with the question of whether the board of education of the
district shall be continuously and permanently authorized to increase 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. If a majority of the qualified electors voting at the election
approve authorization of the board to increase the local option budget, the
board shall have such authority. If a majority of the qualified electors
voting at the election are opposed to authorization of the board to increase
the local option budget, the board shall not have such authority and no like
question shall be submitted to the qualified electors of the district within
the nine months following the election'';
  On page 7, in line 11, after ``means'', by inserting ``either that a
district has held a special election under provision (2)(B) by which
authority of the board to increase a local option budget was approved, or'';
in line 12, by striking ``this subsection'' and inserting ``provision  
(2)(A)'';
  On page 11, in line 21, by striking ``districts'' and inserting
``district's'';
  On page 12, in line 20, after ``and'', by inserting ``(1) for districts
other than the district created by K.S.A. 72-5333a, and amendments
thereto,''; in line 21, after ``district'', by in serting ``and (2) for the
district created by K.S.A. 72-5333a, and amendments thereto, an amount equal
to the federal impact aid of the district''; following line 33, by inserting
a new section as follows:
  ``Sec. 4.  K.S.A. 72-6417 is hereby amended to read as follows: 72-6417.
(a) The distri bution of general state aid under this act shall be made in
accordance with appropriation acts each year as provided in this section.

                                  May 3, 1997                               731

  (b) (1)  In the months of July through May of each school year, the state
board shall determine the amount of general state aid which will be required
by each district to maintain operations in each such month. In making such
determination, the state board shall take into consideration the district's
access to local effort sources and the obligations of the general fund which
must be satisfied during the month. The amount determined by the state board
under this provision is the amount of general state aid which will be
distributed to the district in the months of July through May;
  (2)  in the month of June of each school year, payment shall be made of the
full amount of the general state aid entitlement determined for the school
year, less the sum of the monthly payments made in the months of July through
May.
  (c)  Payments of general state aid shall be distributed to districts once
each month at a time to be determined by the state board. The state board
shall certify to the director of accounts and reports the amount due as
general state aid to each district in each of the months of July through
June. Such certification, and the amount of general state aid payable from
the state general fund, shall be approved by the director of the budget. The
director of accounts and reports shall draw warrants on the state treasurer
payable to the district treasurer of each district entitled to payment of
general state aid, pursuant to vouchers approved by the state board. Upon
receipt of such warrant, each district treasurer shall deposit the amount of
general state aid in the general fund, except that, an amount equal to the
amount of federal impact aid not included in the local effort of a district
may be disposed of as provided in subsection (a) of K.S.A. 72-6427, and
amendments thereto.
  (d)  The provisions of this section shall take effect and be in force
from and after July 1, 1992.'';
  By renumbering sections 4 and 5 as sections 5 and 6, respectively;
  Also on page 12, in line 34, after ``K.S.A.'', by inserting ``72-6417 and
K.S.A.'';
  In the title, in line 13, after ``K.S.A.'', by inserting ``72-6417 and
K.S.A.'';
  And your committee on conference recommends the adoption of this report.
Michael O'Neal
Eugene Shore
Bill Reardon Conferees on part of House Audrey Langworthy
Tim Emert
Christine Downey Conferees on part of Senate   Senator Emert moved the Senate
adopt the Conference Committee report on H. Sub. for SB 36.
  On roll call, the vote was: Yeas 22, nays 16, present and passing 1; absent
or not voting 1.
  Yeas: Becker, Biggs, Bond, Brownlee, Corbin, Downey, Emert, Goodwin,
Hensley, Jones, Jordan, Kerr, Langworthy, Morris, Oleen, Petty, Praeger,
Schraad, Steffes, Steineger, Um barger, Vidricksen.
  Nays: Barone, Bleeker, Clark, Donovan, Feleciano, Hardenburger, Harrington,
Huel skamp, Karr, Lawrence, Lee, Pugh, Ranson, Salisbury, Salmans, Tyson.
  Present and passing: Gilstrap.
  Absent or not voting: Gooch.
  The Conference Committee report was adopted.

CONFERENCE COMMITTEE REPORT

  Mr. President and Mr. Speaker: Your committee on conference on House amend
ments to SB 53, submits the following report:
  The Senate accedes to all House amendments to the bill, and your committee
on con ference further agrees to amend the bill, as printed with House
Committee amendments, as follows:
  On page 2, by striking all in lines 30 through 32 and inserting the
following:

732                          JOURNAL OF THE SENATE

  ``Sec. 2.  K.S.A. 1996 Supp. 79-201a, as amended by section 36 of 1997
House Bill No. 2105, is hereby amended to read as follows: 79-201a. The
following described property, to the extent herein specified, shall be exempt
from all property or ad valorem taxes levied under the laws of the state of
Kansas:
  First. All property belonging exclusively to the United States,
except property which congress has expressly declared to be subject to state
and local taxation.
  Second. All property used exclusively by the state or any
municipality or political subdi vision of the state. All property owned,
being acquired pursuant to a lease-purchase agree ment or operated by the
state or any municipality or political subdivision of the state, in cluding
property which is vacant or lying dormant, which is used or is to be used for
any governmental or proprietary function and for which bonds may be issued or
taxes levied to finance the same, shall be considered to be used exclusively
by the state, municipality or political subdivision for the purposes of this
section. The lease by a municipality or political subdivision of the state of
any real property owned or being acquired pursuant to a leasepurchase
agreement for the purpose of providing office space necessary for the
performance of medical services by a person licensed to practice medicine and
surgery or osteopathic medicine by the board of healing arts pursuant to
K.S.A. 65-2801 et seq., and amendments thereto, dentistry services by a
person licensed by the Kansas dental board pursuant to K.S.A. 65-1401 et
seq., and amendments thereto, optometry services by a person licensed by
the board of examiners in optometry pursuant to K.S.A. 65-1501 et seq.,
and amendments thereto, or K.S.A. 74-1501 et seq., and amendments
thereto or podiatry services by a person licensed by the board of healing
arts pursuant to K.S.A. 65-2001 et seq., and amendments thereto, shall
be construed to be a governmental function, and such property actually and
regularly used for such purpose shall be deemed to be used exclusively for
the purposes of this paragraph. The lease by a municipality or political
subdivision of the state of any real property, or portion thereof, owned or
being acquired pursuant to a lease-purchase agree ment to any entity for the
exclusive use by it for an exempt purpose, including the purpose of
displaying or exhibiting personal property by a museum or historical society,
if no portion of the lease payments include compensation for return on the
investment in such leased property shall be deemed to be used exclusively for
the purposes of this paragraph.  All property leased, other than property
being acquired pursuant to a lease-purchase agreement, to the state or any
municipality or political subdivision of the state by any private entity
shall not be considered to be used exclusively by the state or any
municipality or political sub division of the state for the purposes of this
section except that the provisions of this sentence shall not apply to any
such property subject to lease on the effective date of this act until the
term of such lease expires but property taxes levied upon any such property
prior to tax year 1989, shall not be abated or refunded. Any property
constructed or purchased with the proceeds of industrial revenue bonds issued
prior to July 1, 1963, as authorized by K.S.A. 12-1740 to 12-1749, or
purchased with proceeds of improvement district bonds issued prior to July 1,
1963, as authorized by K.S.A. 19-2776, or with proceeds of bonds issued prior
to July 1, 1963, as authorized by K.S.A. 19-3815a and 19-3815b, or any
property improved, purchased, constructed, reconstructed or repaired with the
proceeds of revenue bonds is sued prior to July 1, 1963, as authorized by
K.S.A. 13-1238 to 13-1245, inclusive, or any property improved, reimproved,
reconstructed or repaired with the proceeds of revenue bonds issued after
July 1, 1963, under the authority of K.S.A. 13-1238 to 13-1245, inclusive,
which had previously been improved, reconstructed or repaired with the
proceeds of rev enue bonds issued under such act on or before July 1, 1963,
shall be exempt from taxation for so long as any of the revenue bonds issued
to finance such construction, reconstruction, improvement, repair or purchase
shall be outstanding and unpaid. Any property constructed or purchased with
the proceeds of any revenue bonds authorized by K.S.A. 13-1238 to 131245,
inclusive, 19-2776, 19-3815a and 19-3815b, and amendments thereto, issued on
or after July 1, 1963, shall be exempt from taxation only for a period of 10
calendar years after the calendar year in which the bonds were issued. Any
property, all or any portion of which is constructed or purchased with the
proceeds of revenue bonds authorized by K.S.A. 121740 to 12-1749, inclusive,
and amendments thereto, issued on or after July 1, 1963 and prior to July 1,
1981, shall be exempt from taxation only for a period of 10 calendar years
after the calendar year in which the bonds were issued. Except as hereinafter
provided, any

                                  May 3, 1997                               733

property constructed or purchased wholly with the proceeds of revenue bonds
issued on or after July 1, 1981, under the authority of K.S.A. 12-1740 to
12-1749, inclusive, and amend ments thereto, shall be exempt from taxation
only for a period of 10 calendar years after the calendar year in which the
bonds were issued. Except as hereinafter provided, any property constructed
or purchased in part with the proceeds of revenue bonds issued on or after
July 1, 1981, under the authority of K.S.A. 12-1740 to 12-1749, inclusive,
and amend ments thereto, shall be exempt from taxation to the extent of the
value of that portion of the property financed by the revenue bonds and only
for a period of 10 calendar years after the calendar year in which the bonds
were issued. The exemption of that portion of the property constructed or
purchased with the proceeds of revenue bonds shall terminate upon the failure
to pay all taxes levied on that portion of the property which is not exempt
and the entire property shall be subject to sale in the manner prescribed by
K.S.A. 79-2301 et seq., and amendments thereto. Property constructed or
purchased in whole or in part with the proceeds of revenue bonds issued on or
after January 1, 1995, under the authority of K.S.A. 12-1740 to 12-1749,
inclusive, and amendments thereto, and used in any retail en terprise
identified under the standard industrial classification codes, major groups
52 through 59, inclusive, except facilities used exclusively to house the
headquarters or back office operations of such retail enterprises identified
thereunder, shall not be exempt from taxation. For the purposes of the
preceding provision ``standard industrial classification code'' means a
standard industrial classification code published in the Standard Industrial
Classification manual, 1987, as prepared by the statistical policy division
of the office of management and budget of the office of the president of the
United States. ``Headquarters or back office operations'' means a facility
from which the enterprise is provided direction, management, administrative
services, or distribution or warehousing functions in support of transactions
made by the enterprise. Property purchased, constructed, reconstructed,
equipped, maintained or repaired with the proceeds of industrial revenue
bonds issued under the authority of K.S.A. 12-1740 et seq., and
amendments thereto, which is located in a redevelopment project area
established under the authority of K.S.A. 12-1770 et seq. shall not be
exempt from taxation. Property purchased, acquired, constructed,
reconstructed, improved, equipped, furnished, repaired, enlarged or remodeled
with all or any part of the proceeds of revenue bonds issued under authority
of K.S.A. 12-1740 to 12-1749a, inclusive, and amendments thereto for any
poultry confinement facility on agricultural land which is owned, acquired,
obtained or leased by a corporation, as such terms are defined by K.S.A.
17-5903 and amendments thereto, shall not be exempt from such taxation.
Property pur chased, acquired, constructed, reconstructed, improved,
equipped, furnished, repaired, en larged or remodeled with all or any part of
the proceeds of revenue bonds issued under the authority of K.S.A. 12-1740 to
12-1749a, inclusive, and amendments thereto, for a rabbit confinement
facility on agricultural land which is owned, acquired, obtained or leased by
a corporation, as such terms are defined by K.S.A. 17-5903 and amendments
thereto, shall not be exempt from such taxation.
  Third. All works, machinery and fixtures used exclusively by any
rural water district or township water district for conveying or production
of potable water in such rural water district or township water district, and
all works, machinery and fixtures used exclusively by any entity which
performed the functions of a rural water district on and after January 1,
1990, and the works, machinery and equipment of which were exempted hereunder
on March 13, 1995.
  Fourth. All fire engines and other implements used for the
extinguishment of fires, with the buildings used exclusively for the
safekeeping thereof, and for the meeting of fire com panies, whether
belonging to any rural fire district, township fire district, town, city or
village, or to any fire company organized therein or therefor.
  Fifth. All property, real and personal, owned by county fair
associations organized and operating under the provisions of K.S.A. 2-125
et seq. and amendments thereto.
  Sixth. Property acquired and held by any municipality under the
municipal housing law (K.S.A. 17-2337 et seq.) and amendments thereto,
except that such exemption shall not apply to any portion of the project used
by a nondwelling facility for profit making enterprise.
  Seventh. All property of a municipality, acquired or held under and
for the purposes of the urban renewal law (K.S.A. 17-4742 et seq.) and
amendments thereto except that such

734                          JOURNAL OF THE SENATE

tax exemption shall terminate when the municipality sells, leases or
otherwise disposes of such property in an urban renewal area to a purchaser
or lessee which is not a public body entitled to tax exemption with respect
to such property.
  Eighth. All property acquired and held by the Kansas armory board for
armory purposes under the provisions of K.S.A. 48-317, and amendments
thereto.
  Ninth. All property acquired and used by the Kansas turnpike
authority under the au thority of K.S.A. 68-2001 et seq., and
amendments thereto, K.S.A. 68-2030 et seq., and amendments thereto,
K.S.A. 68-2051 et seq., and amendments thereto, and K.S.A. 68-2070
et seq., and amendments thereto.
  Tenth. All property acquired and used for state park purposes by the
Kansas department of wildlife and parks.
  Eleventh. The state office building constructed under authority of
K.S.A. 75-3607 et seq., and amendments thereto, and the site upon which
such building is located.
  Twelfth. All buildings erected under the authority of K.S.A. 76-6a01
et seq., and amend ments thereto, and all other student union buildings
and student dormitories erected upon the campus of any institution mentioned
in K.S.A. 76-6a01, and amendments thereto, by any other nonprofit
corporation.
  Thirteenth. All buildings, as the same is defined in subsection (c)
of K.S.A. 76-6a13, and amendments thereto, which are erected, constructed or
acquired under the authority of K.S.A. 76-6a13 et seq., and amendments
thereto, and building sites acquired therefor.
  Fourteenth. All that portion of the waterworks plant and system of
the city of Kansas City, Missouri, now or hereafter located within the
territory of the state of Kansas pursuant to the compact and agreement
adopted by chapter 304 of the 1921 Session Laws of the state of Kansas. [See
K.S.A. 79-205.]
  Fifteenth. All property, real and personal, owned by a groundwater
management district organized and operating pursuant to K.S.A. 82a-1020, and
amendments thereto.
  Sixteenth. All property, real and personal, owned by the joint water
district organized and operating pursuant to K.S.A. 80-1616 et seq.,
and amendments thereto.
  Seventeenth. All property, including interests less than fee
ownership, acquired for the state of Kansas by the secretary of
transportation or a predecessor in interest which is used in the
administration, construction, maintenance or operation of the state system of
high ways, regardless of how or when acquired.
  Eighteenth. Any building used primarily as an industrial training
center for academic or vocational education programs designed for and
operated under contract with private in dustry, and located upon a site
owned, leased or being acquired by or for an area vocational school, an area
vocational-technical school, a technical college, or a community college, as
defined by K.S.A. 72-4412, and amendments thereto, and the site upon which
any such building is located.
  Except as otherwise specifically provided, the provisions of this section
shall apply to all taxable years commencing after December 31, 1996.
  Sec. 3.  K.S.A. 1996 Supp. 79-213, as amended by section 35 of 1997 House
Bill No. 2105, is hereby amended to read as follows: 79-213. (a) Any property
owner requesting an exemption from the payment of ad valorem property taxes
assessed, or to be assessed, against their property shall be required to file
an initial request for exemption, on forms approved by the board of tax
appeals and provided by the county appraiser.
  (b)  The initial exemption request shall identify the property for which
the exemption is requested and state, in detail, the legal and factual basis
for the exemption claimed.
  (c)  The request for exemption shall be filed with the county appraiser of
the county where such property is principally located.
  (d)  After a review of the exemption request, and after a preliminary
examination of the facts as alleged, the county appraiser shall recommend
that the exemption request either be granted or denied, and, if necessary,
that a hearing be held. If a denial is recommended, a statement of the
controlling facts and law relied upon shall be included on the form.
  (e)  The county appraiser, after making such written recommendation, shall
file the request for exemption and the recommendations of the county
appraiser with the board of tax appeals.

                                  May 3, 1997                               735

  (f)  Upon receipt of the request for exemption, the board shall docket the
same and notify the applicant and the county appraiser of such fact.
  (g)  After examination of the request for exemption, and the county
appraiser's recom mendation related thereto, the board may fix a time and
place for hearing, and shall notify the applicant and the county appraiser of
the time and place so fixed. In any case where a party to such request for
exemption requests a hearing thereon, the same shall be granted. Hearings
shall be conducted in accordance with the provisions of the Kansas
administrative procedure act. In all instances where the board sets a request
for exemption for hearing, the county shall be represented by its county
attorney or county counselor.
  (h)  In the event of a hearing, the same shall be originally set not later
than 90 days after the filing of the request for exemption with the board.
  (i)  During the pendency of a request for exemption, no person, firm,
unincorporated association, company or corporation charged with real estate
or personal property taxes pursuant to K.S.A. 79-2004 and 79-2004a, and
amendments thereto, on the tax books in the hands of the county treasurer
shall be required to pay the tax from the date the request is filed with the
county appraiser until the expiration of 30 days after the board issued its
order thereon and the same becomes a final order. In the event that taxes
have been assessed against the subject property, no interest shall accrue on
any unpaid tax for the year or years in question nor shall the unpaid tax be
considered delinquent from the date the request is filed with the county
appraiser until the expiration of 30 days after the board issued its order
thereon. In the event the board determines an application for exemption is
without merit and filed in bad faith to delay the due date of the tax, the
tax shall be considered delinquent as of the date the tax would have been due
pursuant to K.S.A. 79-2004 and 79-2004a, and amendments thereto, and interest
shall accrue as prescribed therein.
  (j)  In the event the board grants the initial request for exemption, the
same shall be effective beginning with the date of first exempt use except
that, with respect to property the construction of which commenced not to
exceed 24 months prior to the date of first exempt use, the same shall be
effective beginning with the date of commencement of con struction.
  (k)  In conjunction with its authority to grant exemptions, the board shall
have the au thority to abate all unpaid taxes that have accrued from and
since the effective date of the exemption. In the event that taxes have been
paid during the period where the subject property has been determined to be
exempt, the board shall have the authority to order a refund of taxes for a
period not to exceed three years.
  (l)  The provisions of this section shall not apply to: (1) Farm machinery
and equipment exempted from ad valorem taxation by K.S.A. 79-201j, and
amendments thereto; (2) personal property exempted from ad valorem taxation
by K.S.A. 79-215, and amendments thereto;   (3) wearing apparel, household
goods and personal effects exempted from ad valorem tax ation by K.S.A.
79-201c, and amendments thereto; (4) livestock; (5) hay and silage exempted
from ad valorem taxation by K.S.A. 79-201d, and amendments thereto; (6)
merchants' and manufacturers' inventories exempted from ad valorem taxation
by K.S.A. 79-201m and amendments thereto; (7) grain exempted from ad valorem
taxation by K.S.A. 79-201n, and amendments thereto; (8) property exempted
from ad valorem taxation by K.S.A. 79-201a Seventeenth and amendments
thereto, including all property previously acquired by the secretary of
transportation or a predecessor in interest, which is used in the
administration, construction, maintenance or operation of the state system of
highways. The secretary of transportation shall at the time of acquisition of
property notify the county appraiser in the county in which the property is
located that the acquisition occurred and provide a legal description of the
property acquired; (9) property exempted from ad valorem taxation by K.S.A.
79-201a Ninth, and amendments thereto, including all property
previously acquired by the Kansas turnpike authority which is used in the
administration, construction, main tenance or operation of the Kansas
turnpike. The Kansas turnpike authority shall at the time of acquisition of
property notify the county appraiser in the county in which the property is
located that the acquisition occurred and provide a legal description of the
property ac quired; (10) aquaculture machinery and equipment exempted from ad
valorem taxation by K.S.A. 79-201j, and amendments thereto. As used in this
section, ``aquaculture'' has the same meaning ascribed thereto by K.S.A.
47-1901, and amendments thereto; (11) Christmas

736                          JOURNAL OF THE SENATE

tree machinery and equipment exempted from ad valorem taxation by K.S.A.
79-201j, and amendments thereto; (12) property used exclusively by the state
or any municipality or political subdivision of the state for right-of-way
purposes. The state agency or the governing body of the municipality or
political subdivision shall at the time of acquisition of property for
right-of-way purposes notify the county appraiser in the county in which the
property is located that the acquisition occurred and provide a legal
description of the property ac quired; (13) machinery, equipment, materials
and supplies exempted from ad valorem tax ation by K.S.A. 1996 Supp. 79-201w,
and amendments thereto; and (14) vehicles owned by the state or by any
political or taxing subdivision thereof and used exclusively for govern
mental purposes; and (15) property used for residential purposes which is
exempted pur suant to section 1 of 1997 Senate Bill No. 41 from the property
tax levied pursuant to K.S.A. 1996 Supp. 72-6431, and amendments thereto.
  (m)  The provisions of this section shall apply to property exempt pursuant
to the pro visions of section 13 of article 11 of the Kansas constitution.
  (n)  The provisions of subsection (j) and (k) as amended by this act shall
be applicable to all taxable years commencing after December 31, 1995.
  Sec. 4.  K.S.A. 1996 Supp. 79-1476, as amended by section 40 of 1997 House
Bill No. 2105, is hereby amended to read as follows: 79-1476. The director of
property valuation is hereby directed and empowered to administer and
supervise a statewide program of reap praisal of all real property located
within the state. Except as otherwise authorized by K.S.A. 19-428, and
amendments thereto, each county shall comprise a separate appraisal district
under such program, and the county appraiser shall have the duty of
reappraising all of the real property in the county pursuant to guidelines
and timetables prescribed by the director of property valuation and of
updating the same on an biennial annual basis. In the case of
multi-county appraisal districts, the district appraiser shall have the duty
of reappraising all of the real property in each of the counties comprising
the district pursuant to such guide lines and timetables and of updating the
same on an biennial annual basis. Commencing in 1994, every
parcel of real property shall be actually viewed and inspected by the county
or district appraiser once every four years. Any county or district appraiser
shall be deemed to be in compliance with the foregoing requirement in any
year if 25% or more of the parcels in such county or district are actually
viewed and inspected.
  Compilation of data for the initial preparation or updating of inventories
for each parcel of real property and entry thereof into the state computer
system as provided for in K.S.A. 79-1477, and amendments thereto, shall be
completed not later than January 1, 1989. When ever the director determines
that reappraisal of all real property within a county is complete,
notification thereof shall be given to the governor and to the state board of
tax appeals.
  Valuations shall be established for each parcel of real property at its
fair market value in money in accordance with the provisions of K.S.A.
79-503a, and amendments thereto.
  In addition thereto valuations shall be established for each parcel of land
devoted to agricultural use upon the basis of the agricultural income or
productivity attributable to the inherent capabilities of such land in its
current usage under a degree of management re flecting median production
levels in the manner hereinafter provided. A classification system for all
land devoted to agricultural use shall be adopted by the director of property
valuation using criteria established by the United States department of
agriculture soil conservation service. For all taxable years commencing after
December 31, 1989, all land devoted to agricultural use which is subject to
the federal conservation reserve program shall be clas sified as cultivated
dry land for the purpose of valuation for property tax purposes pursuant to
this section. Productivity of land devoted to agricultural use shall be
determined for all land classes within each county or homogeneous region
based on an average of the eight calendar years immediately preceding the
calendar year which immediately precedes the year of valuation, at a degree
of management reflecting median production levels. The director of property
valuation shall determine median production levels based on informa tion
available from state and federal crop and livestock reporting services, the
soil conser vation service, and any other sources of data that the director
considers appropriate.
  The share of net income from land in the various land classes within each
county or homogeneous region which is normally received by the landlord shall
be used as the basis for determining agricultural income for all land devoted
to agricultural use except pasture

                                  May 3, 1997                               737

or rangeland. The net income normally received by the landlord from such land
shall be determined by deducting expenses normally incurred by the landlord
from the share of the gross income normally received by the landlord. The net
rental income normally received by the landlord from pasture or rangeland
within each county or homogeneous region shall be used as the basis for
determining agricultural income from such land. The net rental income from
pasture and rangeland which is normally received by the landlord shall be
determined by deducting expenses normally incurred from the gross income
normally re ceived by the landlord. Commodity prices, crop yields and pasture
and rangeland rental rates and expenses shall be based on an average of the
eight calendar years immediately preceding the calendar year which
immediately precedes the year of valuation. Net income for every land class
within each county or homogeneous region shall be capitalized at a rate
determined to be the sum of the contract rate of interest on new federal land
bank loans in Kansas on July 1 of each year averaged over a five-year period
which includes the five years immediately preceding the calendar year which
immediately precedes the year of valuation, except that from and after
December 31, 1997, the director of property valuation shall phase in the
second quarter federal reserve farm loan interest rate with the rate
determined above until such time as the five-year average of the second
quarter federal reserve farm loan interest rate is used exclusively and
without regard to the contract rate of interest on new federal land bank
loans in Kansas, plus a percentage not less than .75% nor more than 2.75%,
as determined by the director of property valuation.
  Based on the foregoing procedures the director of property valuation shall
make an annual determination of the value of land within each of the various
classes of land devoted to agricultural use within each county or homogeneous
region and furnish the same to the several county appraisers who shall
classify such land according to its current usage and apply the value
applicable to such class of land according to the valuation schedules
prepared and adopted by the director of property valuation under the
provisions of this section.
  It is the intent of the legislature that appraisal judgment and appraisal
standards be fol lowed and incorporated throughout the process of data
collection and analysis and estab lishment of values pursuant to this
section.
  For the purpose of the foregoing provisions of this section the phrase
``land devoted to agricultural use'' shall mean and include land, regardless
of whether it is located in the unincorporated area of the county or within
the corporate limits of a city, which is devoted to the production of plants,
animals or horticultural products, including but not limited to: Forages;
grains and feed crops; dairy animals and dairy products; poultry and poultry
prod ucts; beef cattle, sheep, swine and horses; bees and apiary products;
trees and forest prod ucts; fruits, nuts and berries; vegetables; nursery,
floral, ornamental and greenhouse prod ucts. Land devoted to agricultural use
shall not include those lands which are used for recreational purposes, other
than that land established as a controlled shooting area pursuant to K.S.A.
32-943, and amendments thereto, which shall be deemed to be land devoted to
agricultural use, suburban residential acreages, rural home sites or farm
home sites and yard plots whose primary function is for residential or
recreational purposes even though such properties may produce or maintain
some of those plants or animals listed in the foregoing definition.
  The term ``expenses'' shall mean those expenses typically incurred in
producing the plants, animals and horticultural products described above
including management fees, production costs, maintenance and depreciation of
fences, irrigation wells, irrigation laterals and real estate taxes, but the
term shall not include those expenses incurred in providing temporary or
permanent buildings used in the production of such plants, animals and
horticultural products.
  The provisions of this act shall not be construed to conflict with any
other provisions of law relating to the appraisal of tangible property for
taxation purposes including the equal ization processes of the county and
state board of tax appeals.
  Sec. 5.  Notwithstanding any other provision of law to the contrary, for
tax year 1998, the amount of personal property tax imposed upon motor
vehicles having a gross vehicle weight of more than 12,000 pounds but less
than 20,001 pounds, shall be computed in accordance with the provisions of
K.S.A. 79-5101 et seq., and amendments thereto, but shall

738                          JOURNAL OF THE SENATE

be required to be paid at the time required by K.S.A. 79-2004a, and
amendments thereto, and the provisions of such section shall be applicable to
the collection thereof.
  Sec. 6.  K.S.A. 1996 Supp. 72-6431, as amended by section 6 of 1997 House
Bill No. 2031, is hereby amended to read as follows: 72-6431. (a) The board
of each district shall levy an ad valorem tax upon the taxable tangible
property of the district in the school years specified in subsection (b) for
the purpose of:
  (1)  Financing that portion of the district's general fund budget which is
not financed from any other source provided by law;
  (2)  paying a portion of the costs of operating and maintaining public
schools in partial fulfillment of the constitutional obligation of the
legislature to finance the educational in terests of the state; and
  (3)  with respect to any redevelopment district established prior to July
1, 1996 1997, pursuant to K.S.A. 12-1771, and amendments thereto,
paying a portion of the principal and interest on bonds issued by cities
under authority of K.S.A. 12-1774, and amendments thereto, for the financing
of redevelopment projects upon property located within the dis trict.
  (b)  The tax required under subsection (a) shall be levied at a rate of 27
mills in the 1997-98 school year and in the 1998-99 school year.
  (c)  The proceeds from the tax levied by a district under authority of this
section, except the proceeds of such tax levied for the purpose of paying a
portion of the principal and interest on bonds issued by cities under
authority of K.S.A. 12-1774, and amendments thereto, for the financing of
redevelopment projects upon property located within the dis trict, shall be
deposited in the general fund of the district.
  (d)  On June 1 of each year, the amount, if any, by which a district's
local effort exceeds the amount of the district's state financial aid, as
determined by the state board, shall be remitted to the state treasurer. Upon
receipt of any such remittance, the state treasurer shall deposit the same in
the state treasury to the credit of the state school district finance fund.
  (e)  No district shall proceed under K.S.A. 79-1964, 79-1964a or 79-1964b,
and amend ments to such sections.
  Sec. 7.  K.S.A. 79-5037 and K.S.A. 1996 Supp. 72-6431, as amended by
section 6 of 1997 House Bill No. 2031, 79-201a, as amended by section 36 of
1997 House Bill No. 2105, 79-201a, as amended by section 1 of 1997 Senate
Bill No. 22, 79-213, as amended by section 35 of 1997 House Bill No. 2105 and
79-1476, as amended by section 40 of 1997 House Bill No. 2105, are hereby
repealed.
  Sec. 8.  This act shall take effect and be in force from and after its
publication in the statute book.'';
  In the title, by striking all in lines 12 and 13 and inserting ``relating
to property taxation; amending K.S.A. 1996 Supp. 72-6431, as amended by
section 6 of 1997 House Bill No. 2031, 79-201a, as amended by section 36 of
1997 House Bill No. 2105, 79-213, as amended by section 35 of 1997 House Bill
No. 2105, and 79-1476, as amended by section 40 of 1997 House Bill No. 2105,
and repealing the existing sections; also repealing K.S.A. 79-5037 and K.S.A.
1996 Supp. 79-201a, as amended by section 1 of 1997 Senate Bill No. 22.'';
  And your committee on conference recommends the adoption of this report.
Phill Kline
Tony Powell
Bruce Larkin Conferees on part of House Audrey Langworthy
David R. Corbin
Janis Lee Conferees on part of Senate   Senator Langworthy moved the Senate
adopt the Conference Committee report on SB 53.
  On roll call, the vote was: Yeas 37, nays 2, present and passing 0; absent
or not voting 1.

                                  May 3, 1997                               739

  Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin,
Donovan, Downey, Emert, Feleciano, Gilstrap, Goodwin, Hardenburger,
Harrington, Hensley, Huelskamp, Jones, Jordan, Karr, Langworthy, Lawrence,
Lee, Morris, Oleen, Petty, Praeger, Pugh, Ran son, Salisbury, Schraad,
Steffes, Steineger, Tyson, Umbarger, Vidricksen.
  Nays: Kerr, Salmans.
  Absent or not voting: Gooch.
  The Conference Committee report was adopted.

CONFERENCE COMMITTEE REPORT

  Mr. President and Mr. Speaker: Your committee on conference on House amend
ments to SB 184, submits the following report:
  The Senate accedes to all House amendments to the bill, and your committee
on con ference further agrees to amend the bill, as printed with House on
Final Action amend ments, as follows:
  On page 2, by striking all in lines 3 through 43;
  By striking all on pages 3 through 12 and inserting the following:
  ``Sec. 2.  K.S.A. 1996 Supp. 12-1692 is hereby amended to read as follows:
12-1692. As used in this act, the following words and phrases shall have the
meanings respectively as cribed to them herein:
  (a)  ``Person'' means an individual, firm, partnership, corporation, joint
venture or other association of persons;
  (b)  ``Hotel, motel or tourist court'' means any structure or building
which contains rooms furnished for the purposes of providing lodging, which
may or may not also provide meals, entertainment or various other personal
services to transient guests, and which is kept, used, maintained, advertised
or held out to the public as a place where sleeping accommodations are sought
for pay or compensation by transient or permanent guests and having more than
two bedrooms furnished for the accommodation of such guests;
  (c)  ``Transient guest'' means a person who occupies a room in a hotel,
motel or tourist court for not more than 28 consecutive days;
  (d)  ``Business'' means any person engaged in the business of renting,
leasing or letting living quarters, sleeping accommodations, rooms or a part
thereof in connection with any motel, hotel or tourist court; and
  (e)  ``Convention and tourism promotion'' means: (1) Activities to attract
visitors into the community through marketing efforts, including advertising,
directed to at least one of the five basic convention and tourism market
segments consisting of group tours, pleasure trav elers, association meetings
and conventions, trade shows and corporate meetings and travel; and (2)
support of those activities and organizations which encourage increased
lodging facility occupancy.; and
  (f)  ``Accommodations broker'' means any business which maintains an
inventory of two or more rooms in one or more locations which are offered for
pay to a person or persons for not more than 28 consecutive days.
  Sec. 3.  K.S.A. 12-1693 is hereby amended to read as follows: 12-1693. (a)
In order to provide revenues to promote tourism and conventions, the
governing body of any county having a population of more than 300,000 or the
governing body of any city, all or any portion of which is located within
such county, is hereby authorized to levy a transient guest tax at not to
exceed the rate of 2% upon the gross receipts derived from or paid
directly or through an accommodations broker by transient guests for
sleeping accommodations in any hotel, motel or tourist court. The percentage
of such tax shall be determined by the gov erning body levying the same and
shall be specified in the resolution authorizing the same.
  (b)  Any transient guest tax levied pursuant to this section shall be based
on the gross rental receipts collected by any business or accommodations
broker.
  (c)  The taxes levied pursuant to this section shall be paid by the
consumer or user to the business and it shall be the duty of each and every
business to collect from the consumer or user the full amount of any such
tax, or an amount equal as nearly as possible or prac ticable to the average
equivalent thereto. Each business collecting any of the taxes levied
hereunder shall be responsible for paying over the same to the state
department of revenue

740                          JOURNAL OF THE SENATE

in the manner prescribed by K.S.A. 12-1694, and amendments thereto, and the
state de partment of revenue shall administer and enforce the collection of
such taxes.
  (d)  A transient guest tax authorized by this section shall not be levied
until:
  (1)  The governing body of such county has either passed, or has received
from the governing body of any city within such county, a resolution calling
for an election for ap proval by the qualified electors of a transient guest
tax;
  (2)  the governing body of the county has notified all of the incorporated
cities, all or any portion of which are located within such county, of the
intent to call such election. Incorporated cities, all or any portion of
which are located within such county, shall have the option to decline
participation in such election within 30 days of the date of such
notification. The governing body of the county shall have the option to
decline participation in such election within the same 30 day period as
provided to incorporated cities, in which case individual cities may hold
separate elections to submit the proposition to the qualified electors of
such city and such propositions, if approved, would have force only in cities
adopting the tax. If the governing body of the county resolves to participate
in such election, it shall submit such proposition for approval by the
qualified electors of the unincorporated portions of such county and all
incorporated cities within such county which have not de clined participation
in the election; and
  (3)  the governing body of the county or, if the county declines to hold
such election, the governing body of the city, has given notice of its
intention to submit any such proposition for approval by the qualified
electors in the manner required by K.S.A. 10-120, and amend ments thereto,
for giving notice of elections for the issuance of bonds. The notice shall
state the time of the election and the rate and effective date of the
proposed tax. If a majority of the votes cast and counted on any such
proposition are not in favor thereof, such proposition may be resubmitted
under the conditions and in the manner provided herein. If a majority of the
votes cast and counted on any such proposition are in favor thereof, the
governing body of the county or city shall provide by resolution for the levy
of such tax. Any repeal of such tax or any reduction or increase in the rate
thereof shall be accomplished in the manner provided herein for the adoption
and approval of such tax.
  (e)  The collection of any county transient guest tax authorized at a
primary or general election or a transient guest tax levied by a city
authorized at a city primary or general election shall commence on the first
day of the calendar quarter next following the 30th day after the date of the
election authorizing the levy of such tax. The collection of any transient
guest tax of a county or city approved at any other election shall commence
on the first day of the calendar quarter next following the 60th day after
the date of the election authorizing the levy of such tax.
  Sec. 4.  K.S.A. 1996 Supp. 12-1696 is hereby amended to read as follows:
12-1696. As used in this act, the following words and phrases shall have the
meanings respectively as cribed to them herein:
  (a)  ``Person'' means an individual, firm, partnership, corporation, joint
venture or other association of persons;
  (b)  ``Hotel, motel or tourist court'' means any structure or building
which contains rooms furnished for the purposes of providing lodging, which
may or may not also provide meals, entertainment or various other personal
services to transient guests, and which is kept, used, maintained, advertised
or held out to the public as a place where sleeping accommodations are sought
for pay or compensation by transient or permanent guests and having more than
two bedrooms furnished for the accommodation of such guests;
  (c)  ``Transient guest'' means a person who occupies a room in a hotel,
motel or tourist court for not more than 28 consecutive days;
  (d)  ``Business'' means any person engaged in the business of renting,
leasing or letting living quarters, sleeping accommodations, rooms or a part
thereof in connection with any motel, hotel or tourist court; and
  (e)  ``Convention and tourism promotion'' means: (1) Activities to attract
visitors into the community through marketing efforts, including advertising,
directed to at least one of the five basic convention and tourism market
segments consisting of group tours, pleasure trav elers, association meetings
and conventions, trade shows and corporate meetings and travel;

                                  May 3, 1997                               741

and (2) support of those activities and organizations which encourage
increased lodging facility occupancy.; and
  (f)  ``Accommodations broker'' means any business which maintains an
inventory of two or more rooms in one or more locations which are offered for
pay to a person or persons for not more than 28 consecutive days.
  Sec. 5.  K.S.A. 12-1697 is hereby amended to read as follows: 12-1697. (a)
In order to provide revenues to promote tourism and conventions, the
governing body of any county or the governing body of any city is hereby
authorized to levy a transient guest tax at not to exceed the rate of 2% upon
the gross receipts derived from or paid directly or through an
accommodations broker by transient guests for sleeping accommodations,
exclusive of charges for incidental services or facilities, in any hotel,
motel or tourist court. The per centage of such tax shall be determined by
the board of county commissioners or the city governing body and shall be
specified in the resolution or ordinance authorizing the same.
  (b)  Any transient guest tax levied pursuant to this section shall be based
on the gross rental receipts collected by any business or accommodations
broker.
  (c)  The taxes levied pursuant to this section shall be paid by the
consumer or user to the business and it shall be the duty of each and every
business to collect from the consumer or user the full amount of any such
tax, or an amount equal as nearly as possible or prac ticable to the average
equivalent thereto. Each business collecting any of the taxes levied
hereunder shall be responsible for paying over the same to the state
department of revenue in the manner prescribed by K.S.A. 12-1698, and
amendments thereto, and the state de partment of revenue shall administer and
enforce the collection of such taxes.
  (d)  A transient guest tax authorized by this section shall not be levied
until the governing body of such county or city has passed a resolution or
ordinance authorizing the same.
  (e)  The collection of any county or city transient guest tax authorized to
be levied pur suant to this section shall commence on the first day of the
calendar quarter next following the 30th day after the date of the receipt by
the department of revenue of the resolution or ordinance authorizing the levy
of such tax.
  Sec. 6.  K.S.A. 1996 Supp. 79-3603 is hereby amended to read as follows:
79-3603. For the privilege of engaging in the business of selling tangible
personal property at retail in this state or rendering or furnishing any of
the services taxable under this act, there is hereby levied and there shall
be collected and paid a tax at the rate of 4.9%:
  (a)  The gross receipts received from the sale of tangible personal
property at retail within this state;
  (b) (1)  the gross receipts from intrastate telephone or telegraph services
and (2) the gross receipts received from the sale of interstate telephone or
telegraph services, which (A) originate within this state and terminate
outside the state and are billed to a customer's telephone number or account
in this state; or (B) originate outside this state and terminate within this
state and are billed to a customer's telephone number or account in this
state except that the sale of interstate telephone or telegraph service does
not include: (A) Any interstate incoming or outgoing wide area telephone
service or wide area transmission type service which entitles the subscriber
to make or receive an unlimited number of commu nications to or from persons
having telephone service in a specified area which is outside the state in
which the station provided this service is located; (B) any interstate
private communications service to the persons contracting for the receipt of
that service that entitles the purchaser to exclusive or priority use of a
communications channel or group of channels between exchanges; (C) any
value-added nonvoice service in which computer processing applications are
used to act on the form, content, code or protocol of the information to be
transmitted; (D) any telecommunication service to a provider of
telecommunication services which will be used to render telecommunications
services, including carrier access services; or (E) any service or
transaction defined in this section among entities classified as members of
an affiliated group as provided by federal law (U.S.C. Section 1504);
  (c)  the gross receipts from the sale or furnishing of gas, water,
electricity and heat, which sale is not otherwise exempt from taxation under
the provisions of this act, and whether furnished by municipally or privately
owned utilities;

742                          JOURNAL OF THE SENATE

  (d)  the gross receipts from the sale of meals or drinks furnished at any
private club, drinking establishment, catered event, restaurant, eating
house, dining car, hotel, drugstore or other place where meals or drinks are
regularly sold to the public;
  (e)  the gross receipts from the sale of admissions to any place providing
amusement, entertainment or recreation services including admissions to
state, county, district and local fairs, but such tax shall not be levied and
collected upon the gross receipts received from sales of admissions to any
cultural and historical event which occurs triennially;
  (f)  the gross receipts from the operation of any coin-operated device
dispensing or providing tangible personal property, amusement or other
services except laundry services, whether automatic or manually operated;
  (g)  the gross receipts from the service of renting of rooms by hotels, as
defined by K.S.A. 36-501 and amendments thereto, or by accommodation
brokers, as defined by K.S.A. 121692, and amendments thereto;
  (h)  the gross receipts from the service of renting or leasing of tangible
personal property except such tax shall not apply to the renting or leasing
of machinery, equipment or other personal property owned by a city and
purchased from the proceeds of industrial revenue bonds issued prior to July
1, 1973, in accordance with the provisions of K.S.A. 12-1740 through 12-1749,
and amendments thereto, and any city or lessee renting or leasing such
machinery, equipment or other personal property purchased with the proceeds
of such bonds who shall have paid a tax under the provisions of this section
upon sales made prior to July 1, 1973, shall be entitled to a refund from the
sales tax refund fund of all taxes paid thereon;
  (i)  the gross receipts from the rendering of dry cleaning, pressing,
dyeing and laundry services except laundry services rendered through a
coin-operated device whether automatic or manually operated;
  (j)  the gross receipts from the rendering of the services of washing and
washing and waxing of vehicles;
  (k)  the gross receipts from cable, community antennae and other subscriber
radio and television services;
  (l)  the gross receipts received from the sales of tangible personal
property to all con tractors, subcontractors or repairmen of materials and
supplies for use by them in erecting structures for others, or building on,
or otherwise improving, altering, or repairing real or personal property of
others;
  (m)  the gross receipts received from fees and charges by public and
private clubs, drink ing establishments, organizations and businesses for
participation in sports, games and other recreational activities, but such
tax shall not be levied and collected upon the gross receipts received from:
(1) Fees and charges by any political subdivision, or any youth recreation
organization exclusively providing services to persons 18 years of age or
younger which is exempt from federal income taxation pursuant to section
501(c)(3) of the federal internal revenue code of 1986, for participation in
sports, games and other recreational activities; and (2) entry fees and
charges for participation in a special event or tournament sanctioned by a
national sporting association to which spectators are charged an admission
which is taxable pursuant to subsection (e);
  (n)  the gross receipts received from dues charged by public and private
clubs, drinking establishments, organizations and businesses, payment of
which entitles a member to the use of facilities for recreation or
entertainment;
  (o)  the gross receipts received from the isolated or occasional sale of
motor vehicles or trailers but not including: (1) The transfer of motor
vehicles or trailers by a person to a corporation solely in exchange for
stock securities in such corporation; or (2) the transfer of motor vehicles
or trailers by one corporation to another when all of the assets of such
corporation are transferred to such other corporation; or (3) the sale of
motor vehicles or trailers which are subject to taxation pursuant to the
provisions of K.S.A. 79-5101 et seq., and amendments thereto, by an immediate
family member to another immediate family member. For the purposes of clause
(3), immediate family member means lineal ascendants or descendants, and
their spouses. In determining the base for computing the tax on such isolated
or occasional sale, the fair market value of any motor vehicle or trailer
traded in by the purchaser to the seller may be deducted from the selling
price;

                                  May 3, 1997                               743

  (p)  the gross receipts received for the service of installing or applying
tangible personal property which when installed or applied is not being held
for sale in the regular course of business, and whether or not such tangible
personal property when installed or applied remains tangible personal
property or becomes a part of real estate, except that no tax shall be
imposed upon the service of installing or applying tangible personal property
in connec tion with the original construction of a building or facility or
the construction, reconstruction, restoration, replacement or repair of a
bridge or highway.
  For the purposes of this subsection:
  (1)  ``Original construction'' shall mean the first or initial construction
of a new building or facility. The term ``original construction'' shall
include the addition of an entire room or floor to any existing building or
facility, the completion of any unfinished portion of any existing building
or facility and the restoration, reconstruction or replacement of a building
or facility damaged or destroyed by fire, flood, tornado, lightning,
explosion or earthquake, but such term shall not include replacement,
remodeling, restoration, renovation or recon struction under any other
circumstances;
  (2)  ``building'' shall mean only those enclosures within which individuals
customarily live or are employed, or which are customarily used to house
machinery, equipment or other property, and including the land improvements
immediately surrounding such building; and
  (3)  ``facility'' shall mean a mill, plant, refinery, oil or gas well,
water well, feedlot or any conveyance, transmission or distribution line of
any cooperative, nonprofit, membership corporation organized under or subject
to the provisions of K.S.A. 17-4601 et seq., and amendments thereto, or of
any municipal or quasi-municipal corporation, including the land improvements
immediately surrounding such facility;
  (q)  the gross receipts received for the service of repairing, servicing,
altering or main taining tangible personal property, except computer software
described in subsection (s), which when such services are rendered is not
being held for sale in the regular course of business, and whether or not any
tangible personal property is transferred in connection therewith. The tax
imposed by this subsection shall be applicable to the services of repairing,
servicing, altering or maintaining an item of tangible personal property
which has been and is fastened to, connected with or built into real
property;
  (r)  the gross receipts from fees or charges made under service or
maintenance agree ment contracts for services, charges for the providing of
which are taxable under the pro visions of subsection (p) or (q);
  (s)  the gross receipts received from the sale of computer software, and
the sale of the services of modifying, altering, updating or maintaining
computer software. As used in this subsection, ``computer software'' means
information and directions loaded into a computer which dictate different
functions to be performed by the computer. Computer software includes any
canned or prewritten program which is held or existing for general or
repeated sale, even if the program was originally developed for a single end
user as custom computer software. The sale of computer software or services
does not include: (1) The initial sale of any custom computer program which
is originally developed for the exclusive use of a single end user; or (2)
those services rendered in the modification of computer software when the
modification is developed exclusively for a single end user only to the
extent of the modi fication and only to the extent that the actual amount
charged for the modification is sep arately stated on invoices, statements
and other billing documents provided to the end user. The services of
modification, alteration, updating and maintenance of computer software shall
only include the modification, alteration, updating and maintenance of
computer soft ware taxable under this subsection whether or not the services
are actually provided; and
  (t)  the gross receipts received for telephone answering services,
including mobile phone services, beeper services and other similar services.
  Sec. 7.  K.S.A. 1996 Supp. 79-3606, as amended by section 32 of 1997 House
Bill No. 2105, is hereby amended to read as follows: 79-3606. The following
shall be exempt from the tax imposed by this act:
  (a)  All sales of motor-vehicle fuel or other articles upon which a sales
or excise tax has been paid, not subject to refund, under the laws of this
state except cigarettes as defined by K.S.A. 79-3301 and amendments thereto,
cereal malt beverages and malt products as defined by K.S.A. 79-3817 and
amendments thereto, including wort, liquid malt, malt syrup

744                          JOURNAL OF THE SENATE

and malt extract, which is not subject to taxation under the provisions of
K.S.A. 79-41a02 and amendments thereto, and motor vehicles as defined by
K.S.A. 79-1017 and amendments thereto;
  (b)  all sales of tangible personal property or service, including the
renting and leasing of tangible personal property, purchased directly by the
state of Kansas, a political subdi vision thereof, other than a school or
educational institution, or purchased by a public or private nonprofit
hospital or nonprofit blood, tissue or organ bank and used exclusively for
state, political subdivision, hospital or nonprofit blood, tissue or organ
bank purposes, except when: (1) Such state or hospital is engaged or proposes
to engage in any business specifically taxable under the provisions of this
act and such items of tangible personal property or service are used or
proposed to be used in such business, or (2) such political subdivision is
engaged or proposes to engage in the business of furnishing gas, water,
electricity or heat to others and such items of personal property or service
are used or proposed to be used in such business;
  (c)  all sales of tangible personal property or services, including the
renting and leasing of tangible personal property, purchased directly by a
public or private elementary or sec ondary school or public or private
nonprofit educational institution and used primarily by such school or
institution for nonsectarian programs and activities provided or sponsored by
such school or institution or in the erection, repair or enlargement of
buildings to be used for such purposes. The exemption herein provided shall
not apply to erection, con struction, repair, enlargement or equipment of
buildings used primarily for human habita tion;
  (d)  all sales of tangible personal property or services purchased by a
contractor for the purpose of constructing, equipping, reconstructing,
maintaining, repairing, enlarging, fur nishing or remodeling facilities for
any public or private nonprofit hospital, public or private elementary or
secondary school or a public or private nonprofit educational institution,
which would be exempt from taxation under the provisions of this act if
purchased directly by such hospital, school or educational institution; and
all sales of tangible personal property or services purchased by a contractor
for the purpose of constructing, equipping, recon structing, maintaining,
repairing, enlarging, furnishing or remodeling facilities for any po litical
subdivision of the state, the total cost of which is paid from funds of such
political subdivision and which would be exempt from taxation under the
provisions of this act if purchased directly by such political subdivision.
Nothing in this subsection or in the pro visions of K.S.A. 12-3418 and
amendments thereto, shall be deemed to exempt the purchase of any
construction machinery, equipment or tools used in the constructing,
equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
remodeling facilities for any political subdivision of the state. As used in
this subsection, K.S.A. 12-3418 and 79-3640, and amendments thereto, ``funds
of a political subdivision'' shall mean general tax revenues, the proceeds of
any bonds and gifts or grants-in-aid. Gifts shall not mean funds used for the
purpose of constructing, equipping, reconstructing, repairing, enlarging,
furnishing or re modeling facilities which are to be leased to the donor.
When any political subdivision of the state, public or private nonprofit
hospital, public or private elementary or secondary school or public or
private nonprofit educational institution shall contract for the purpose of
constructing, equipping, reconstructing, maintaining, repairing, enlarging,
furnishing or remodeling facilities, it shall obtain from the state and
furnish to the contractor an exemption certificate for the project involved,
and the contractor may purchase materials for incor poration in such project.
The contractor shall furnish the number of such certificate to all suppliers
from whom such purchases are made, and such suppliers shall execute invoices
covering the same bearing the number of such certificate. Upon completion of
the project the contractor shall furnish to the political subdivision,
hospital, school or educational in stitution concerned a sworn statement, on
a form to be provided by the director of taxation, that all purchases so made
were entitled to exemption under this subsection. As an alter native to the
foregoing procedure, any such contracting entity may apply to the secretary
of revenue for agent status for the sole purpose of issuing and furnishing
project exemption certificates to contractors pursuant to rules and
regulations adopted by the secretary estab lishing conditions and standards
for the granting and maintaining of such status. All invoices shall be held
by the contractor for a period of five years and shall be subject to audit by
the

                                  May 3, 1997                               745

director of taxation. If any materials purchased under such a certificate are
found not to have been incorporated in the building or other project or not
to have been returned for credit or the sales or compensating tax otherwise
imposed upon such materials which will not be so incorporated in the building
or other project reported and paid by such contractor to the director of
taxation not later than the 20th day of the month following the close of the
month in which it shall be determined that such materials will not be used
for the purpose for which such certificate was issued, the political
subdivision, hospital, school or educational institution concerned shall be
liable for tax on all materials purchased for the project, and upon payment
thereof it may recover the same from the contractor together with reasonable
attorney fees. Any contractor or any agent, employee or subcontractor
thereof, who shall use or otherwise dispose of any materials purchased under
such a certif icate for any purpose other than that for which such a
certificate is issued without the payment of the sales or compensating tax
otherwise imposed upon such materials, shall be guilty of a misdemeanor and,
upon conviction therefor, shall be subject to the penalties provided for in
subsection (g) of K.S.A. 79-3615, and amendments thereto;
  (e)  all sales of tangible personal property or services purchased by a
contractor for the erection, repair or enlargement of buildings or other
projects for the government of the United States, its agencies or
instrumentalities, which would be exempt from taxation if purchased directly
by the government of the United States, its agencies or instrumentalities.
When the government of the United States, its agencies or instrumentalities
shall contract for the erection, repair, or enlargement of any building or
other project, it shall obtain from the state and furnish to the contractor
an exemption certificate for the project involved, and the contractor may
purchase materials for incorporation in such project. The contractor shall
furnish the number of such certificates to all suppliers from whom such
purchases are made, and such suppliers shall execute invoices covering the
same bearing the number of such certificate. Upon completion of the project
the contractor shall furnish to the govern ment of the United States, its
agencies or instrumentalities concerned a sworn statement, on a form to be
provided by the director of taxation, that all purchases so made were
entitled to exemption under this subsection. As an alternative to the
foregoing procedure, any such contracting entity may apply to the secretary
of revenue for agent status for the sole purpose of issuing and furnishing
project exemption certificates to contractors pursuant to rules and
regulations adopted by the secretary establishing conditions and standards
for the granting and maintaining of such status. All invoices shall be held
by the contractor for a period of five years and shall be subject to audit by
the director of taxation. Any contractor or any agent, employee or
subcontractor thereof, who shall use or otherwise dispose of any ma terials
purchased under such a certificate for any purpose other than that for which
such a certificate is issued without the payment of the sales or compensating
tax otherwise imposed upon such materials, shall be guilty of a misdemeanor
and, upon conviction therefor, shall be subject to the penalties provided for
in subsection (g) of K.S.A. 79-3615 and amendments thereto;
  (f)  tangible personal property purchased by a railroad or public utility
for consumption or movement directly and immediately in interstate commerce;
  (g)  sales of aircraft including remanufactured and modified aircraft,
sales of aircraft repair, modification and replacement parts and sales of
services employed in the remanu facture, modification and repair of aircraft
sold to persons using such aircraft and aircraft repair, modification and
replacement parts as certified or licensed carriers of persons or property in
interstate or foreign commerce under authority of the laws of the United
States or any foreign government or sold to any foreign government or agency
or instrumentality of such foreign government and all sales of aircraft,
aircraft parts, replacement parts and services employed in the remanufacture,
modification and repair of aircraft for use outside of the United States;
  (h)  all rentals of nonsectarian textbooks by public or private elementary
or secondary schools;
  (i)  the lease or rental of all films, records, tapes, or any type of sound
or picture tran scriptions used by motion picture exhibitors;
  (j)  meals served without charge or food used in the preparation of such
meals to em ployees of any restaurant, eating house, dining car, hotel,
drugstore or other place where

746                          JOURNAL OF THE SENATE

meals or drinks are regularly sold to the public if such employees' duties
are related to the furnishing or sale of such meals or drinks;
  (k)  any motor vehicle, semitrailer or pole trailer, as such terms are
defined by K.S.A. 8-126 and amendments thereto, or aircraft sold and
delivered in this state to a bona fide resident of another state, which motor
vehicle, semitrailer, pole trailer or aircraft is not to be registered or
based in this state and which vehicle, semitrailer, pole trailer or aircraft
will not remain in this state more than 10 days;
  (l)  all isolated or occasional sales of tangible personal property,
services, substances or things, except isolated or occasional sale of motor
vehicles specifically taxed under the pro visions of subsection (o) of K.S.A.
79-3603 and amendments thereto;
  (m)  all sales of tangible personal property which become an ingredient or
component part of tangible personal property or services produced,
manufactured or compounded for ultimate sale at retail within or without the
state of Kansas; and any such producer, manu facturer or compounder may
obtain from the director of taxation and furnish to the supplier an exemption
certificate number for tangible personal property for use as an ingredient or
component part of the property or services produced, manufactured or
compounded;
  (n)  all sales of tangible personal property which is consumed in the
production, man ufacture, processing, mining, drilling, refining or
compounding of tangible personal prop erty, the treating of by-products or
wastes derived from any such production process, the providing of services or
the irrigation of crops for ultimate sale at retail within or without the
state of Kansas; and any purchaser of such property may obtain from the
director of taxation and furnish to the supplier an exemption certificate
number for tangible personal property for consumption in such production,
manufacture, processing, mining, drilling, refining, compounding, treating,
irrigation and in providing such services;
  (o)  all sales of animals, fowl and aquatic plants and animals, the primary
purpose of which is use in agriculture or aquaculture, as defined in K.S.A.
47-1901, and amendments thereto, the production of food for human
consumption, the production of animal, dairy, poultry or aquatic plant and
animal products, fiber or fur, or the production of offspring for use for any
such purpose or purposes;
  (p)  all sales of drugs, as defined by K.S.A. 65-1626 and amendments
thereto, dispensed pursuant to a prescription order, as defined by K.S.A.
65-1626 and amendments thereto, by a licensed practitioner;
  (q)  all sales of insulin dispensed by a person licensed by the state board
of pharmacy to a person for treatment of diabetes at the direction of a
person licensed to practice medicine by the board of healing arts;
  (r)  all sales of prosthetic and orthopedic appliances prescribed in
writing by a person licensed to practice the healing arts, dentistry or
optometry. For the purposes of this sub section, the term prosthetic and
orthopedic appliances means any apparatus, instrument, device, or equipment
used to replace or substitute for any missing part of the body; used to
alleviate the malfunction of any part of the body; or used to assist any
disabled person in leading a normal life by facilitating such person's
mobility; such term shall include acces sories attached or to be
attached to motor vehicles, but such term shall not include motor vehicles or
personal property which when installed becomes a fixture to real property;
  (s)  all sales of tangible personal property or services purchased directly
by a groundwater management district organized or operating under the
authority of K.S.A. 82a-1020 et seq. and amendments thereto, which
property or services are used in the operation or mainte nance of the
district;
  (t)  all sales of farm machinery and equipment or aquaculture machinery and
equipment, repair and replacement parts therefor and services performed in
the repair and maintenance of such machinery and equipment. For the purposes
of this subsection the term ``farm machinery and equipment or aquaculture
machinery and equipment'' shall include machin ery and equipment used in the
operation of Christmas tree farming but shall not include any passenger
vehicle, truck, truck tractor, trailer, semitrailer or pole trailer, other
than a farm trailer, as such terms are defined by K.S.A. 8-126 and amendments
thereto. Each purchaser of farm machinery and equipment or aquaculture
machinery and equipment exempted herein must certify in writing on the copy
of the invoice or sales ticket to be retained by the seller that the farm
machinery and equipment or aquaculture machinery

                                  May 3, 1997                               747

and equipment purchased will be used only in farming, ranching or aquaculture
production. Farming or ranching shall include the operation of a feedlot and
farm and ranch work for hire and the operation of a nursery;
  (u)  all leases or rentals of tangible personal property used as a dwelling
if such tangible personal property is leased or rented for a period of more
than 28 consecutive days;
  (v)  all sales of food products to any contractor for use in preparing
meals for delivery to homebound elderly persons over 60 years of age and to
homebound disabled persons or to be served at a group-sitting at a location
outside of the home to otherwise homebound elderly persons over 60 years of
age and to otherwise homebound disabled persons, as all or part of any food
service project funded in whole or in part by government or as part of a
private nonprofit food service project available to all such elderly or
disabled persons residing within an area of service designated by the private
nonprofit organization, and all sales of food products for use in preparing
meals for consumption by indigent or homeless individuals whether or not such
meals are consumed at a place designated for such purpose;
  (w)  all sales of natural gas, electricity, heat and water delivered
through mains, lines or pipes: (1) To residential premises for noncommercial
use by the occupant of such premises;   (2) for agricultural use and also,
for such use, all sales of propane gas; (3) for use in the severing of oil;
and (4) to any property which is exempt from property taxation pursuant to
K.S.A. 79-201b Second through Sixth.  As used in this paragraph,
``severing'' shall have the meaning ascribed thereto by subsection (k) of
K.S.A. 79-4216, and amendments thereto;
  (x)  all sales of propane gas, LP-gas, coal, wood and other fuel sources
for the production of heat or lighting for noncommercial use of an occupant
of residential premises;
  (y)  all sales of materials and services used in the repairing, servicing,
altering, maintain ing, manufacturing, remanufacturing, or modification of
railroad rolling stock for use in interstate or foreign commerce under
authority of the laws of the United States;
  (z)  all sales of tangible personal property and services purchased
directly by a port authority or by a contractor therefor as provided by the
provisions of K.S.A. 12-3418 and amendments thereto;
  (aa)  all sales of materials and services applied to equipment which is
transported into the state from without the state for repair, service,
alteration, maintenance, remanufacture or modification and which is
subsequently transported outside the state for use in the trans mission of
liquids or natural gas by means of pipeline in interstate or foreign commerce
under authority of the laws of the United States;
  (bb)  all sales of used mobile homes or manufactured homes. As used in this
subsection:   (1) ``Mobile homes'' and ``manufactured homes'' shall have the
meanings ascribed thereto by K.S.A. 58-4202 and amendments thereto; and (2)
``sales of used mobile homes or man ufactured homes'' means sales other than
the original retail sale thereof;
  (cc)  all sales of tangible personal property or services purchased for the
purpose of and in conjunction with constructing, reconstructing, enlarging or
remodeling a business or retail business which meets the requirements
established in K.S.A. 74-50,115 and amendments thereto, and the sale and
installation of machinery and equipment purchased for installation at any
such business or retail business. When a person shall contract for the
construction, reconstruction, enlargement or remodeling of any such business
or retail business, such person shall obtain from the state and furnish to
the contractor an exemption certificate for the project involved, and the
contractor may purchase materials, machinery and equipment for incorporation
in such project. The contractor shall furnish the number of such certificates
to all suppliers from whom such purchases are made, and such suppliers shall
execute invoices covering the same bearing the number of such certificate.
Upon completion of the project the contractor shall furnish to the owner of
the business or retail business a sworn statement, on a form to be provided
by the director of taxation, that all purchases so made were entitled to
exemption under this subsection. All invoices shall be held by the contractor
for a period of five years and shall be subject to audit by the director of
taxation. Any contractor or any agent, employee or subcontractor thereof, who
shall use or otherwise dispose of any materials, machinery or equipment
purchased under such a certificate for any purpose other than that for which
such a certificate is issued without the payment of the sales or compensating
tax otherwise imposed thereon, shall be guilty of a misdemeanor and, upon
conviction therefor, shall be subject to the penalties provided for in
subsection

748                          JOURNAL OF THE SENATE

  (g) of K.S.A. 79-3615 and amendments thereto. As used in this subsection,
``business'' and ``retail business'' have the meanings respectively ascribed
thereto by K.S.A. 74-50,114 and amendments thereto;
  (dd)  all sales of tangible personal property purchased with food stamps
issued by the United States department of agriculture;
  (ee)  all sales of lottery tickets and shares made as part of a lottery
operated by the state of Kansas;
  (ff)  on and after July 1, 1988, all sales of new mobile homes or
manufactured homes to the extent of 40% of the gross receipts, determined
without regard to any trade-in allowance, received from such sale. As used in
this subsection, ``mobile homes'' and ``manufactured homes'' shall have the
meanings ascribed thereto by K.S.A. 58-4202 and amendments thereto;
  (gg)  all sales of tangible personal property purchased in accordance with
vouchers issued pursuant to the federal special supplemental food program for
women, infants and children;
  (hh)  all sales of medical supplies and equipment purchased directly by a
nonprofit skilled nursing home or nonprofit intermediate nursing care home,
as defined by K.S.A. 39-923, and amendments thereto, for the purpose of
providing medical services to residents thereof. This exemption shall not
apply to tangible personal property customarily used for human habitation
purposes;
  (ii)  all sales of tangible personal property purchased directly by a
nonprofit organization for nonsectarian comprehensive multidiscipline youth
development programs and activities provided or sponsored by such
organization. This exemption shall not apply to tangible personal property
customarily used for human habitation purposes;
  (jj)  all sales of tangible personal property or services, including the
renting and leasing of tangible personal property, purchased directly on
behalf of a community-based mental retardation facility or mental health
center organized pursuant to K.S.A. 19-4001 et seq., and amendments
thereto, and licensed in accordance with the provisions of K.S.A. 75-3307b
and amendments thereto. This exemption shall not apply to tangible personal
property customarily used for human habitation purposes;
  (kk)  on and after January 1, 1989, all sales of machinery and equipment
used directly and primarily for the purposes of manufacturing, assembling,
processing, finishing, storing, warehousing or distributing articles of
tangible personal property in this state intended for resale by a
manufacturing or processing plant or facility or a storage, warehousing or
dis tribution facility:
  (1)  For purposes of this subsection, machinery and equipment shall be
deemed to be used directly and primarily in the manufacture, assemblage,
processing, finishing, storing, warehousing or distributing of tangible
personal property where such machinery and equip ment is used during a
manufacturing, assembling, processing or finishing, storing, ware housing or
distributing operation:
  (A) To effect a direct and immediate physical change upon the tangible
personal property;
  (B)  to guide or measure a direct and immediate physical change upon such
property where such function is an integral and essential part of tuning,
verifying or aligning the component parts of such property;
  (C)  to test or measure such property where such function is an integral
part of the production flow or function;
  (D)  to transport, convey or handle such property during the manufacturing,
processing, storing, warehousing or distribution operation at the plant or
facility; or
  (E)  to place such property in the container, package or wrapping in which
such property is normally sold or transported.
  (2)  For purposes of this subsection ``machinery and equipment used
directly and pri marily'' shall include, but not be limited to:
  (A)  Mechanical machines or major components thereof contributing to a
manufacturing, assembling or finishing process;
  (B)  molds and dies that determine the physical characteristics of the
finished product or its packaging material;
  (C)  testing equipment to determine the quality of the finished product;

                                  May 3, 1997                               749

  (D)  computers and related peripheral equipment that directly control or
measure the manufacturing process or which are utilized for engineering of
the finished product; and
  (E)  computers and related peripheral equipment utilized for research and
development and product design.
  (3)  ``Machinery and equipment used directly and primarily'' shall not
include:
  (A)  Hand tools;
  (B)  machinery, equipment and tools used in maintaining and repairing any
type of ma chinery and equipment;
  (C)  transportation equipment not used in the manufacturing, assembling,
processing, furnishing, storing, warehousing or distributing process at the
plant or facility;
  (D)  office machines and equipment including computers and related
peripheral equip ment not directly and primarily used in controlling or
measuring the manufacturing process;
  (E)  furniture and buildings; and
  (F)  machinery and equipment used in administrative, accounting, sales or
other such activities of the business;
  (ll)  all sales of educational materials purchased for distribution to the
public at no charge by a nonprofit corporation organized for the purpose of
encouraging, fostering and con ducting programs for the improvement of public
health;
  (mm)  all sales of seeds and tree seedlings; fertilizers, insecticides,
herbicides, germi cides, pesticides and fungicides; and services, purchased
and used for the purpose of pro ducing plants in order to prevent soil
erosion on land devoted to agricultural use;
  (nn)  except as otherwise provided in this act, all sales of services
rendered by an ad vertising agency or licensed broadcast station or any
member, agent or employee thereof;
  (oo)  all sales of tangible personal property purchased by a community
action group or agency for the exclusive purpose of repairing or weatherizing
housing occupied by low income individuals;
  (pp)  all sales of drill bits and explosives actually utilized in the
exploration and produc tion of oil or gas;
  (qq)  all sales of tangible personal property and services purchased by a
nonprofit mu seum or historical society or any combination thereof, including
a nonprofit organization which is organized for the purpose of stimulating
public interest in the exploration of space by providing educational
information, exhibits and experiences, which is exempt from fed eral income
taxation pursuant to section 501(c)(3) of the federal internal revenue code
of 1986;
  (rr)  all sales of tangible personal property which will admit the
purchaser thereof to any annual event sponsored by a nonprofit organization
which is exempt from federal income taxation pursuant to section 501(c)(3) of
the federal internal revenue code of 1986;
  (ss)  all sales of tangible personal property and services purchased by a
public broad casting station licensed by the federal communications
commission as a noncommercial educational television or radio station;
and
  (tt)  all sales of tangible personal property and services purchased by or
on behalf of a not-for-profit corporation which is exempt from federal income
taxation pursuant to section 501(c)(3) of the federal internal revenue code
of 1986, for the sole purpose of constructing a Kansas Korean War
memorial;
  (uu)  all sales of tangible personal personal property and services
purchased by or on behalf of any rural volunteer fire-fighting organization
for use exclusively in the performance of its duties and functions;
  (vv)  all sales of tangible personal property purchased by any of the
following organi zations which are exempt from federal income taxation
pursuant to section 501 (c)(3) of the federal internal revenue code of 1986,
for the following purposes, and all sales of any such property by or on
behalf of any such organization for any such purpose:
  (1)  The American Heart Association, Kansas Affiliate, Inc. for the
purposes of providing education, training, certification in emergency cardiac
care, research and other related serv ices to reduce disability and death
from cardiovascular diseases and stroke;
  (2)  the Kansas Alliance for the Mentally Ill, Inc. for the purpose of
advocacy for persons with mental illness and to education, research and
support for their families;

750                          JOURNAL OF THE SENATE

  (3)  the Kansas Mental Illness Awareness Council for the purposes of
advocacy for per sons who are mentally ill and to education, research and
support for them and their families;
  (4)  the American Diabetes Association Kansas Affiliate, Inc. for the
purpose of elimi nating diabetes through medical research, public education
focusing on disease prevention and education, patient education including
information on coping with diabetes, and pro fessional education and
training;
  (5)  the American Lung Association of Kansas, Inc. for the purpose of
eliminating all lung diseases through medical research, public education
including information on coping with lung diseases, professional education
and training related to lung disease and other related services to reduce the
incidence of disability and death due to lung disease;
  (6)  the Kansas chapters of the Alzheimer's Disease and Related Disorders
Association, Inc. for the purpose of providing assistance and support to
persons in Kansas with Alzhei mer's disease, and their families and
caregivers; and
  (ww)  all sales of tangible personal property purchased by the Habitat for
Humanities for the exclusive use of being incorporated within a housing
project constructed by such organization.
  Sec. 8.  K.S.A. 12-1693 and 12-1697 and K.S.A. 1996 Supp. 12-188, 12-1692,
12-1696, 79-3603 and 79-3606, as amended by section 32 of 1997 House Bill No.
2105, are hereby repealed.
  Sec. 9.  This act shall take effect and be in force from and after its
publication in the statute book.'';
  In the title, in line 12, by striking all after the semicolon; by striking
all in lines 13 through 15 and inserting ``amending K.S.A. 12-1693 and
12-1697 and K.S.A. 1996 Supp. 12-188, 121692, 12-1696, 79-3603 and 79-3606,
as amended by section 32 of 1997 House Bill No. 2105, and repealing the
existing sections.'';
  And your committee on conference recommends the adoption of this report.
Phill Kline
Tony Powell
Bruce Larkin Conferees on part of House Audrey Langworthy
David R. Corbin
Janis Lee Conferees on part of Senate   Senator Langworthy moved the Senate
adopt the Conference Committee report on SB 184.
  On roll call, the vote was: Yeas 33, nays 6, present and passing 0; absent
or not voting 1.
  Yeas: Barone, Becker, Bleeker, Bond, Brownlee, Corbin, Donovan, Downey,
Emert, Fe leciano, Goodwin, Hardenburger, Harrington, Hensley, Jones, Jordan,
Karr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Praeger, Pugh, Ranson,
Salmans, Schraad, Steffes, Steineger, Tyson, Umbarger, Vidricksen.
  Nays: Biggs, Clark, Gilstrap, Huelskamp, Kerr, Salisbury.
  Absent or not voting: Gooch.
  The Conference Committee report was adopted.

CONFERENCE COMMITTEE REPORT

  Mr. President and Mr. Speaker: Your committee on conference on House amend
ments to SB 214, submits the following report:
  The Senate accedes to all House amendments to the bill, and your committee
on con ference further agrees to amend the bill, as printed with House
Committee of the Whole amendments as follows:
  On page 4, in line 11, by striking ``the effective date of this act'' and
inserting ``July 1, 1995''; in line 13, by striking ``or a misdemeanor crime
of domestic violence''; in line 15, after ``(d)'' by inserting the following:
``has not been convicted, does not have an expunged conviction, has not been
placed on diversion by any state or the federal government for a misdemeanor
crime of domestic violence or its equivalent under the uniform code of
military

                                  May 3, 1997                               751

justice, when such misdemeanor crime of domestic violence was committed on or
after the effective date of this act;
  (e)'';
  Also on page 4, in line 18, by striking ``(e)'' and inserting ``(f)''; in
line 19, by striking ``(f)'' and inserting ``(g)''; in line 20, by striking
``(g)'' and inserting ``(h)''; in line 23, by striking ``(h)'' and inserting
``(i)'';
  On page 5, in line 16, by striking ``the effective date of this act'' and
inserting ``July 1, 1995''; also in line 16, by striking ``or a''; in line
17, by striking ``misdemeanor crime of domestic violence''; in line 19, after
``justice'' by inserting ``or convicted of or diverted for a misdemeanor
crime of domestic violence under the laws of this state, another state or the
United States or of its equivalent under the uniform code of military
justice, when such misdemeanor crime of domestic violence was committed on or
after the effective date of this act'';
  On page 7, after line 14, by inserting the following:
  ``Sec. 8.  K.S.A. 32-808 is hereby amended to read as follows: 32-808. (a)
The secretary shall organize a wildlife and parks conservation service
and employ conservation officers and other employees, regardless of
title, to exercise law enforcement authority as provided in subsection (b),
if such officers and other employees successfully complete the required
course of instruction for law enforcement officers approved by the Kansas law
enforcement training center pursuant to K.S.A. 74-5607a and amendments
thereto, and employees ap pointed on a provisional or probationary basis for
a period of not more than one year, except that such provisional or
probationary employee shall meet at least the criteria on appoint ment
specified in K.S.A. 74-5605 and amendments thereto, and shall not be issued a
firearm until such employee has been instructed and trained in the use
thereof by the department. An employee appointed on a provisional or
probationary basis, who does not receive the certificate required under
subsection (a) of K.S.A. 74-5607a and amendments thereto, within one year
following the date of the person's original appointment shall not have
authority to enforce the laws of the state as provided in subsection (b).
The secretary may appoint per manent conservation officers and
employees of the department, including appointment in the capacity as
deputy conservation officers, and may appoint Kansas law enforcement
officers temporarily assigned by their employer to the department
pursuant to K.S.A. 745610 and amendments thereto, to assist the wildlife
and parks conservation service in a manner determined by the secretary.
All deputy conservation officer appointments shall be on a voluntary basis
and shall expire on December 31 following the date of any such ap pointment.
  (b)  Conservation officers, deputy conservation officers and other
employees who have completed the course of instruction as provided in
subsection (a), provisional or probationary employees who have met the
requirements of subsection (a) and any other Kansas law en forcement
officers authorized to enforce the laws of the state of Kansas shall have the
power and authority to:
  (1) Enforce all the wildlife and parks laws and statutory
provisions of chapter 32 of the Kansas Statutes Annotated or any rules and
regulations promulgated thereunder, or any other laws of the state
anywhere within the state, including but not limited to chapter 8 of
the Kansas Statutes Annotated, and amendments thereto, and the rules and
regulations of the secretary., except that nothing in this act shall
grant conservation officers, deputy con servation officers and other
employees authority that supersedes that of the local law en forcement
authority having jurisdiction over the matter. The secretary shall establish
a policy under which the department's officers and other employees primarily
direct such officers' and employees' efforts toward the protection,
conservation and management of natural re sources of this state and the
provision of safe and orderly lands controlled by the department. Such
officers shall also have the powers of arrest set forth in K.S.A. 22-2401,
and amend ments thereto, and are empowered to make arrests, pursuant to
K.S.A. 22-2307, and amend ments thereto, as required by any policy adopted by
the secretary. A conservation officer acting under authority of this
subsection shall be considered an employee of the department and shall be
subject to its direction, benefits and legal protection.
  (2)  Serve anywhere within the state warrants and subpoenas
issued for the examination, investigation or trial of all offenses against
the wildlife and parks laws and rules and regu

752                          JOURNAL OF THE SENATE

lations of the secretary and of violations of department controlled lands and
waters, of any law and of any rule and regulation of the state of Kansas
violations of all laws of the state as provided in subsection (b).
  (3)  Carry firearms or weapons, concealed or otherwise, in the performance
of their duties but only if the officer or employee has completed the
required course of instruction for law enforcement officers at the
Kansas law enforcement training center, unless otherwise qualified
pursuant to K.S.A. 74-5608a and amendments thereto or as to a provisional
or probationary employee who has met the requirements of subsection (a).
  Sec. 9.  K.S.A. 32-1048 is hereby amended to read as follows: 32-1048.
Conservation officers and deputy conservation officers in the wildlife and
parks conservation service Any officer or other employee of the
department who meets the criteria specified in subsection   (a) of K.S.A.
32-808 and amendments thereto and any other Kansas law enforcement
officer authorized to enforce the laws of this state shall have the power to
arrest pursuant to the authority granted in subsection (b) of K.S.A.
32-808 and amendments thereto, at any place in the state of Kansas, any
person or persons found violating any of the wildlife and parks laws of
this state, or the rules and regulations adopted thereunder, without
warrants, and with warrants where not found violating such laws of the
state, and rules and regulations promulgated pursuant to chapter 32 of
the Kansas Statutes Annotated, and amendments thereto, and to bring such
persons forthwith immediately before the nearest proper judge of
the district court of the county within which such violation took place for
trial.'';
  And by renumbering sections accordingly;
  On page 13, in line 18, after ``19-801b'' by inserting ``, 32-808,
32-1048''; in line 21, by striking ``statute book'' and inserting ``Kansas
register'';
  On page 1, in the title, in line 13, after the semicolon, by inserting
``conservation officers;''; in line 14, after ``19-801b'' by inserting ``,
32-808, 32-1048''
  And your committee on conference recommends the adoption of this report.
Tim Carmody
Terry Presta
Thomas Klein Conferees on part of House Tim Emert
Keith Schraad
Greta Goodwin Conferees on part of Senate   Senator Emert moved the Senate
adopt the Conference Committee report on SB 214.
  On roll call, the vote was: Yeas 26, nays 13, present and passing 0; absent
or not voting 1.
  Yeas: Becker, Biggs, Bond, Corbin, Downey, Emert, Feleciano, Gilstrap,
Goodwin, Har denburger, Hensley, Jones, Karr, Langworthy, Lee, Morris, Oleen,
Petty, Praeger, Pugh, Salisbury, Schraad, Steffes, Steineger, Umbarger,
Vidricksen.
  Nays: Barone, Bleeker, Brownlee, Clark, Donovan, Harrington, Huelskamp,
Jordan, Kerr, Lawrence, Ranson, Salmans, Tyson.
  Absent or not voting: Gooch.
  The Conference Committee report was adopted.
                              EXPLANATION OF VOTE
  Mr. President: See I told you so!--Larry D. Salmans

CONFERENCE COMMITTEE REPORT

  Mr. President and Mr. Speaker: Your committee on conference on Senate amend
ments to HB 2022, submits the following report:
  The House accedes to all Senate amendments to the bill, and your committee
on con ference further agrees to amend the bill, as printed with Senate
Committee of the Whole amendments, as follows:
  On page 19, by striking all after line 41;
  By striking all in pages 20 through 29;

                                  May 3, 1997                               753

  On page 30, by striking all before line 27;
  By renumbering the existing sections;
  Also on page 30, in line 27, by striking ``and 44-706''; also in line 27,
by striking ``are'' and inserting ``is'';
  In the title, in line 15, by striking ``and 44-706''; in line 16, by
striking ``sections'' and inserting ``section'';
  And your committee on conference recommends the adoption of this report.
Alicia Salisbury
Pat Ranson
Jim Barone Conferees on part of Senate Al Lane
Gerald G. Geringer
Janice L. Pauls Conferees on part of House   Senator Salisbury moved the
Senate adopt the Conference Committee report on HB 2022.
  On roll call, the vote was: Yeas 34, nays 4, present and passing 0; absent
or not voting 2.
  Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin,
Donovan, Downey, Feleciano, Goodwin, Hardenburger, Harrington, Huelskamp,
Jordan, Karr, Kerr, Lang worthy, Lawrence, Lee, Morris, Oleen, Praeger, Pugh,
Ranson, Salisbury, Salmans, Schraad, Steffes, Steineger, Tyson, Umbarger,
Vidricksen.
  Nays: Emert, Gilstrap, Hensley, Jones.
  Absent or not voting: Gooch, Petty.
  The Conference Committee report was adopted.

ORIGINAL MOTION

  On motion of Senator Praeger, the Senate acceded to the request of the
House for a conference on HB 2278.
  The President appointed Senators Praeger, Salmans and Steineger as
conferees on the part of the Senate.

CHANGE OF CONFERENCE

  The President announced the appointment of Senator Steineger as a member of
the Conference Committee on SB 146 to replace Senator Gooch.

REPORT ON ENGROSSED BILLS

  SB 116, 201 reported correctly re-engrossed May 3, 1997.
  On motion of Senator Emert, the Senate recessed until 5:30 p.m.
 Evening Session   The Senate met pursuant to recess with President Bond
in the chair.

MESSAGE FROM THE HOUSE

  Announcing the House adopts the conference committee report on SB 204.
  The House adopts the conference committee report on HB 2022.

ORIGINAL MOTION

  Senator Vidricksen moved that subsection 4(k) of the Joint Rules of the
Senate and House of Representatives be suspended for the purpose of
considering the following bills: SB 204; HB 2278.

CONFERENCE COMMITTEE REPORT

  Mr. President and Mr. Speaker: Your committee on conference on House
amend ments to SB 204, submits the following report:

754                          JOURNAL OF THE SENATE

  The Senate accedes to all House amendments to the bill, and your committee
on con ference further agrees to amend the bill, as printed with House
Committee of the Whole amendments, as follows:
  On page 2, in line 2, after the period, by inserting a sentence as follows:
 ``An accident and sickness insurer may exclude a late enrollee, except
during an open enrollment period.''; in line 30, by striking ``benefits'' and
inserting ``expenses'';
  On page 22, following line 31, by inserting a subsection, as follows:
  ``(c)  A carrier may exclude a late enrollee except during an open
enrollment period.'';
  Also on page 22, in line 32, by striking ``(c)'' and inserting ``(d)''; in
line 36, by striking ``(d)'' and inserting ``(e)''; in line 40, by striking
``(e)'' and inserting ``(f)'';
  On page 23, in line 6, by striking ``(f)'' and inserting ``(g)''; in line
11, by striking ``(g)'' and inserting ``(h)''; also in line 11, by striking
``(h)'' and inserting ``(f)'';
  On page 35, in line 24, before ``K.S.A.'' by inserting ``On and after
January 1, 1998,'';
  On page 36, following line 9, by inserting a subsection as follows:
  ``(g)  ``Dependent'' means a resident spouse or resident unmarried child
under the age of 19 years, a child who is a student under the age of 23 years
and who is financially dependent upon the parent, or a child of any age who
is disabled and dependent upon the parent.'';
  Also on page 36, in line 10, by striking ``(g)'' and inserting ``(h)''; in
line 24, by striking ``(h)'' and inserting ``(i)''; in line 28, by striking
``(i)'' and inserting ``(j)''; in line 34, by striking ``(j)'' and inserting
``(k)'';
  On page 37, in line 5, by striking ``(k)'' and inserting ``(l)''; in line
8, by striking ``(l)'' and inserting ``(m)''; in line 14, by striking ``(m)''
and inserting ``(n)''; in line 18, by striking ``(n)'' and inserting ``(o)'';
in line 21, by striking ``(o)'' and inserting ``(p)''; in line 23, by
striking ``(p)'' and inserting ``(q)''; in line 25, by striking ``(q)'' and
inserting ``(r)''; in line 27, by striking ``(r)'' and inserting ``(s)'';
following line 30, by inserting two sections as follows:
  ``Sec. 8.  On and after July 1, 1997, K.S.A. 1996 Supp. 40-2119 is hereby
amended to read as follows: 40-2119. (a) There is hereby created a nonprofit
legal entity to be known as the Kansas health insurance association. All
insurers and insurance arrangements provid ing health care benefits in this
state shall be members of the association. The association shall operate
under a plan of operation established and approved under subsection (b) of
this section and shall exercise its powers through a board of directors
established under this section.
  (b) (1)  The board of directors of the association shall be selected by
members of the association subject to the approval of the commissioner. To
select the initial board of di rectors, and to initially organize the
association, the commissioner shall give notice to all members in this state
of the time and place of the organizational meeting. In determining voting
rights at the organizational meeting, each member shall be entitled to one
vote in person or by proxy. If the board of directors is not selected within
60 days after the organ izational meeting, the commissioner shall appoint the
initial board. In approving or selecting members of the board, the
commissioner shall consider, among other things, whether all members are
fairly represented. Members of the board may be reimbursed from the moneys of
the plan for expenses incurred by them as members of the board of directors
but shall not otherwise be compensated by the plan for their services.
  (2)  The board shall submit to the commissioner a plan of operation for the
association and any amendments thereto necessary or suitable to assure the
fair, reasonable and equi table administration of the plan. The plan of
operation shall become effective upon approval in writing by the commissioner
consistent with the date on which the coverage under this act must be made
available. The commissioner shall, after notice and hearing, approve the plan
of operation if it is determined to be suitable to assure the fair,
reasonable and equitable administration of the plan and provides for the
sharing of association losses on an equitable proportionate basis among the
members of the association. If the board fails to submit a suitable plan of
operation within 180 days after its appointment, or at any time thereafter
fails to submit suitable amendments to the plan of operation, the
commissioner shall, after notice and hearing, adopt and promulgate such
reasonable rules and regulations as are necessary or advisable to effectuate
the provisions of this section. Such rules and regulations shall continue in
force until modified by the commissioner or superseded by a plan of

                                  May 3, 1997                               755

operation submitted by the board and approved by the commissioner. The plan
of operation shall, in addition to requirements enumerated elsewhere in this
act:
  (A)  Establish procedures for the handling and accounting of assets and
moneys of the plan;
  (B)  select an administering carrier in accordance with K.S.A. 40-2120, and
amendments thereto;
  (C)  establish procedures for the collection of assessments from all
members to provide for claims paid under the plan and for administrative
expenses incurred or estimated to be incurred during the period for which the
assessment is made. The level of payments shall be established by the board
pursuant to K.S.A. 40-2121, and amendments thereto. Assess ments shall be due
and payable within 30 days of receipt of the assessment notice;
  (D)  establish appropriate cost control measures, including but not limited
to, pread mission review, case management, utilization review and exclusions
and limitations with respect to treatment and services under the plan; and
  (E)  develop and implement a program to publicize the existence of the
plan, the eligi bility requirements and procedures for enrollment and to
maintain public awareness of the plan.
  (F)  Establish benefit levels, lifetime maximum benefits, and other
coverage and eligibility parameters, and establish such other requirements
and procedures as are necessary to assure the availability of a benefit
program or programs conforming with the requirements of a qualified high risk
pool as set forth in section 111 of Public Law 104-191 and amendments
thereto.
  (c)  The association shall have the general powers and authority enumerated
by this subsection in accordance with the plan of operation approved by the
commissioner under subsection (b). The association shall have the general
powers and authority granted under the laws of this state to insurers
licensed to transact the kind of health service or insurance included under
K.S.A. 40-2123, and amendments thereto, and in addition thereto, the spe
cific authority and duty to:
  (1)  Enter into contracts as are necessary or proper to carry out the
provisions and purposes of this act, including the authority, with the
approval of the commissioner, to enter into contracts with similar plans of
other states for the joint performance of common ad ministrative functions,
or with persons or other organizations for the performance of ad ministrative
functions;
  (2)  sue or be sued, including taking any legal actions necessary or proper
for recovery of any assessments for, on behalf of, or against participating
members;
  (3)  take such legal action as necessary to avoid the payment of improper
claims against the association or the coverage provided by or through the
plan;
  (4)  establish appropriate rates, rate schedules, rate adjustments, expense
allowances, agents' referral fees, claim reserve formulas and any other
actuarial function appropriate to the operation of the plan. During the first
two years of operation of the plan, rates shall be established in an amount
that is estimated by the board to cover all claims that may be made against
the plan and the expenses of operating the plan. In following years, rates
for coverage shall be reasonable in terms of the benefits provided, the risk
experience and expenses of providing the coverage, except that such rates
shall not exceed 150% of the average premium rate charged for similar
coverage in the private market. Rates and rate schedules may be adjusted for
appropriate risk factors such as age, sex and geographic location in claims
costs and shall take into consideration appropriate risk factors in
accordance with established actuarial and underwriting practices, however
particular health conditions or illnesses shall not constitute appropriate
risk factors;
  (5)  assess members of the association in accordance with the provisions of
K.S.A. 402121, and amendments thereto;
  (6)  design the policy policies of insurance to be offered by
the plan which may cover only shall cover at least the expenses
enumerated in subsection (b) of K.S.A. 40-2123, and amendments thereto, but
with such limitations and optional benefit levels as the plan pre scribes;
  (7)  issue policies of insurance in accordance with the requirements of
this act; and

756                          JOURNAL OF THE SENATE

  (8)  appoint from among members appropriate legal, actuarial and other
committees as necessary to provide technical assistance in the operation of
the plan, policy and other contract design, and any other function within the
authority of the association.
  Sec. 9.  On and after July 1, 1997, K.S.A. 1996 Supp. 40-2121 is hereby
amended to read as follows: 40-2121. (a) Following the close of each fiscal
year, the administering carrier shall determine the net premiums, the plan
expenses of administration and the incurred losses for the year. Any net loss
of the plan determined after taking into account amounts transferred pursuant
to subsection (h) of K.S.A. 79-4804, and amendments thereto, invest ment
income and other appropriate gains and losses shall be assessed by the board
to all members of the association in proportion to their respective shares of
total health insurance premiums received in this state during the calendar
year coinciding with or ending during the fiscal year of the association or
any other equitable basis as may be provided in the plan of operation. For
health maintenance organization members and insurance arrangements, the
proportionate share of losses shall be determined through application of an
equitable formula based upon claims paid on the value of services provided.
In sharing losses, the board may abate or defer in whole or in part the
assessment of a member if, in the opinion of the board, payment of the
assessment would endanger the ability of the member to fulfill its
contractual obligations. Health insurance benefits paid by an insurance
arrangement that are less than an amount determined by the board to justify
the cost of collection shall not be considered for purposes of determining
assessments. Net gains, if any, shall be held at interest to offset future
losses or allocated to reduce future premiums.  In addition to any annual
assessment at the close of the fiscal year of the plan authorized by this
subsection, the board may provide for interim assessments of the members of
the association, subject to the approval of the commissioner, as may be
necessary to assure the financial capability of the association in meeting
the incurred or estimated claims expenses of the plan and the operating and
administrative expenses of the plan.
  (b)  In addition to any assessment authorized by subsection (a) of this
section, the board may assess the members of the association for any
initial costs associated with developing and implementing the plan to the
extent such costs exceed the funds transferred to the uninsurable health
insurance plan fund pursuant to K.S.A. 40-2125 and amendments thereto. Such
assessment shall be allocated among the members of the association in the
manner prescribed by subsection (a) of this section or any other equitable
formula estab lished by the board. Assessments under this subsection shall
not be subject to the credit against premium tax under subsection (c) of
this section.
  (c)  For all taxable years commencing after December 31, 1995, and
prior to January 1, 1998, 80% of any assessment made against a member of
the association pursuant to subsection (a) of this section may be claimed by
such member as a credit against such member's premium or privilege tax
liability imposed by K.S.A. 12-2624, 40-252 or 40-3213 and amendments
thereto, for the taxable year in which such assessment is paid. For the
tax year commencing after December 31, 1997, 70% of any assessment made
against a member of the association pursuant to subsection (a) of this
section may be claimed by such member as a credit against such member's
premium tax liability imposed by K.S.A. 12-2624, 40-252 or 40-3213 and
amendments thereto, for the taxable year in which such assessment is paid.
  For the tax year commencing after December 31, 1998, 65% of any assessment
made against a member of the association pursuant to subsection (a) of this
section may be claimed by such member as a credit against such member's
premium tax liability imposed by K.S.A. 12-2624, 40-252 or 40-3213 and
amendments thereto, for the taxable year in which such assessment is paid.
  For the tax year commencing after December 31, 1999, 60% of any assessment
made against a member of the association pursuant to subsection (a) of this
section may be claimed by such member as a credit against such member's
premium tax liability imposed by K.S.A. 12-2624, 40-252 or 40-3213 and
amendments thereto, for the taxable year in which such assessment is paid.
  The amendments made to the Kansas uninsurable health insurance plan act by
1997 Senate Bill No. 204 shall expire on January 1, 2001.'';
  Also on page 37, in line 31, by striking ``8.'' and inserting ``10.  On and
after January 1, 1998,'';

                                  May 3, 1997                               757

  By renumbering remaining sections accordingly;
  Also on page 37, in line 33, by striking ``of this section''; in line 35,
by striking ``and'' and inserting ``or'';
  On page 38, in line 2, by striking the colon; by striking all of lines 3,
4, 5, 6 and 7 and inserting ``is in excess of the plan rate;''; following
line 11, by inserting a subsection as follows:
  ``(b)  Each resident dependent of a person who is eligible for plan
coverage shall also be eligible for plan coverage.'';
  Also on page 38, in line 12, by striking ``(b)'' and inserting ``(c)''; by
striking lines 36, 37 and 38; in line 39, by striking ``$5,000.'' and
inserting the following: ``On and after January 1, 1998, the plan shall offer
to current participants and new enrollees no fewer than four choices of
deductible and copayment options.'';
  On page 43, in line 21, by striking ``10'' and inserting ``14'';
  On page 44, by striking lines 17 to 43, inclusive;
  On page 45, by striking lines 1 to 43, inclusive;
  On page 46, by striking lines 1 to 43, inclusive;
  On page 47, by striking all in lines 1 to 9, inclusive, and inserting the
following sections:
  ``Sec. 15.  K.S.A. 1996 Supp. 40-2,105 is hereby amended to read as
follows: 40-2,105.   (a) On or after the effective date of this act, every
insurer which issues any individual or group policy of accident and sickness
insurance providing medical, surgical or hospital ex pense coverage for other
than specific diseases or accidents only and which provides for reimbursement
or indemnity for services rendered to a person covered by such policy in a
medical care facility, must provide for reimbursement or indemnity under such
individual policy or under such group policy, except as provided in
subsection (d), which shall be limited to not less than 30 days per year when
such person is confined for treatment of alcoholism, drug abuse or nervous or
mental conditions in a medical care facility licensed under the provisions of
K.S.A. 65-429 and amendments thereto, a treatment facility for alcoholics
licensed under the provisions of K.S.A. 65-4014 and amendments thereto, a
treat ment facility for drug abusers licensed under the provisions of K.S.A.
65-4605 and amend ments thereto, a community mental health center or clinic
licensed under the provisions of K.S.A. 75-3307b and amendments thereto or a
psychiatric hospital licensed under the pro visions of K.S.A. 75-3307b and
amendments thereto. Such individual policy or such group policy shall also
provide for reimbursement or indemnity, except as provided in subsection  
(d), of the costs of treatment of such person for alcoholism, drug abuse and
nervous or mental conditions, limited to not less than 100% of the first
$100, 80% of the next $100 and 50% of the next $1,640 in any year and limited
to not less than $7,500 in such person's lifetime, in the facilities
enumerated when confinement is not necessary for the treatment or by a
physician licensed or psychologist licensed to practice under the laws of the
state of Kansas.
  (b)  For the purposes of this section ``nervous or mental conditions''
means disorders specified in the diagnostic and statistical manual of mental
disorders, fourth edition, (DSMIV, 1994) of the American psychiatric
association but shall not include conditions not at tributable to a mental
disorder that are a focus of attention or treatment (DSM-IV, 1994).
  (c)  The provisions of this section shall be applicable to health
maintenance organizations organized under article 32 of chapter 40 of the
Kansas Statutes Annotated.
  (d)  There shall be no coverage under the provisions of this section for
any assessment against any person required by a diversion agreement or by
order of a court to attend an alcohol and drug safety action program
certified pursuant to K.S.A. 8-1008 and amendments thereto.
  (e)  The provisions of this section shall not apply to any medicare
supplement policy of insurance, as defined by the commissioner of insurance
by rule and regulation.
  (f)  The provisions of this section shall be applicable to the Kansas state
employees health care benefits program developed and provided by the Kansas
state employees health care commission.
  (g)  The outpatient coverage provisions of this section shall not apply
to a high deductible health plan as defined in Section 301 of P.L. 104-191
and any amendments thereto if such plan is purchased in connection with a
medical savings account pursuant to that act. After the amount of eligible
deductible expenses have been paid by the insured, the outpatient

758                          JOURNAL OF THE SENATE

costs of treatment of the insured for alcoholism, drug abuse and nervous or
mental conditions shall be paid on the same level they are provided for a
medical condition.
  New Sec. 16.  Sections 16 to 23 of this act shall be known and may be cited
as the patient protection act.
  New Sec. 17.  As used in this act:
  (a)  ``Emergency medical condition'' means the sudden and, at the time,
unexpected onset of a health condition that requires immediate medical
attention, where failure to provide medical attention would result in serious
impairment to bodily functions or serious dysfunction of a bodily organ or
part, or would place the person's health in serious jeopardy.
  (b)  ``Emergency services'' means ambulance services and health care items
and services furnished or required to evaluate and treat an emergency medical
condition, as directed or ordered by a physician.
  (c)  ``Health benefit plan'' means any hospital or medical expense policy,
health, hospital or medical service corporation contract, a plan provided by
a municipal group-funded pool, a policy or agreement entered into by a health
insurer or a health maintenance organization contract offered by an employer
or any certificate issued under any such policies, contracts or plans.
``Health benefit plan'' does not include policies or certificates covering
only acci dent, credit, dental, disability income, long-term care, hospital
indemnity, medicare supple ment, specified disease, vision care, coverage
issued as a supplement to liability insurance, insurance arising out of a
workers compensation or similar law, automobile medical-payment insurance, or
insurance under which benefits are payable with or without regard to fault
and which is statutorily required to be contained in any liability insurance
policy or equiv alent self-insurance.
  (d)  ``Health insurer'' means any insurance company, nonprofit medical and
hospital service corporation, municipal group-funded pool, fraternal benefit
society, health mainte nance organization, or any other entity which offers a
health benefit plan subject to the Kansas Statutes Annotated.
  (e)  ``Insured'' means a person who is covered by a health benefit plan.
  (f)  ``Participating provider'' means a provider who, under a contract with
the health insurer or with its contractor or subcontractor, has agreed to
provide one or more health care services to insureds with an expectation of
receiving payment, other than coinsurance, copayments or deductibles,
directly or indirectly from the health insurer.
  (g)  ``Provider'' means a physician, hospital or other person which is
licensed, accredited or certified to perform specified health care services.
  (h)  ``Provider network'' means those participating providers who have
entered into a contract or agreement with a health insurer to provide items
or health care services to individuals covered by a health benefit plan
offered by such health insurer.
  (i)  ``Physician'' means a person licensed by the state board of healing
arts to practice medicine and surgery.
  New Sec. 18.  (a) A health benefit plan shall not deny coverage for
emergency services if the symptoms presented by an insured and recorded by
the attending provider indicate that an emergency medical condition exists,
or for emergency services necessary to provide an insured with a medical
examination and stabilizing treatment, regardless of whether prior
authorization was obtained to provide those services.
  (b)  If a participating provider or other authorized representative of a
health insurer authorizes emergency services, the health insurer shall not
subsequently rescind or modify that authorization after the provider renders
the authorized care in good faith and pursuant to the authorization except
for:
  (1)  Payments made as a result of misrepresentation, fraud, omission or
clerical error; and
  (2)  copayment, coinsurance or deductible amounts that are the
responsibility of the insured.
  (c)  Once an insured is stabilized pursuant to subsection (a), a health
benefit plan may require as a condition of further coverage that a hospital
emergency facility shall promptly contact the health insurer for prior
authorization for continuing treatment, specialty con sultations, transfer
arrangements or other medically necessary and appropriate care for an
insured.

                                  May 3, 1997                               759

  (d)  Coverage of emergency services shall be subject to applicable
copayments, coinsur ance and deductibles.
  (e)  For required post evaluation or post stabilization services
immediately following treatment of an emergency medical condition, a health
insurer shall provide access to an authorized representative 24 hours a day,
seven days a week.
  New Sec. 19.  No health insurer shall prohibit or restrict any
participating provider from discussing with or disclosing to any insured or
other individual any medically appropriate health care information that such
provider deems appropriate regarding the nature of treat ment options, the
risks or alternatives thereto, the process used or the decision made by such
insurer to approve or deny health care services, the availability of
alternate therapies, consultations, or tests, or from advocating on behalf of
the insured within the utilization review or grievance processes established
by the health insurer.
  New Sec. 20.  No health insurer shall offer or operate a compensation
arrangement between such health insurer or its agents and a participating
provider that may directly or indirectly serve as an inducement to reduce or
limit the delivery of medically necessary services with respect to an insured
in any health benefit plan offered by such health insurer. Compensation
arrangements which involve capitation payments or other risk sharing pro
visions shall not be considered inducements.
  New Sec. 21.  Every health insurer shall inform in writing current and
prospective in sureds that the following information shall be available upon
request:
  (a)  A complete description of the health care services, items and other
benefits to which the insured is entitled in the particular health benefit
plan which is covering or being offered to such person;
  (b)  a description of any limitations, exceptions or exclusions to coverage
in the health benefit plan, including prior authorization policies,
restricted drug formularies or other provisions which restrict access to
covered services or items by the insured;
  (c)  a listing of the health benefit plan's participating providers, their
business addresses and telephone numbers, the availability of those
providers, and any limitations on an insu red's choice of provider;
  (d)  notification in advance of any changes in the health benefit plan
which either reduces the coverage or benefits, or increases the cost, to such
person; and
  (e)  a description of the grievance and appeal procedures available under
the health benefit plan and an insured's rights regarding termination,
disenrollment, nonrenewal or cancelation of coverage.
  New Sec. 22.  (a) A health insurer providing a health benefit plan shall
maintain a pro vider network that is sufficient in numbers and types of
providers to assure that all covered services to an insured will be
accessible without unreasonable delay. Sufficiency of the provider network
shall be determined in accordance with the requirements of this section, and
may be established by reference to any reasonable criteria used by the health
insurer, including but not limited to: provider-insured ratios by specialty;
primary care providerinsured ratios; geographic accessibility; waiting times
for appointments with participating providers; hours of operation; and the
availability of technological and specialty services to serve the needs of
insureds requiring technologically advanced or specialty care.
  (b)  A health insurer shall have a plan by which an insured with a
life-threatening, chronic, degenerative or disabling condition or disease,
which requires specialized medical care over a prolonged period of time, may
receive a referral to a specialist with expertise in treating such disease or
condition who shall be responsible for and capable of providing and
coordinating the insured's specialty care.
  (c)  Nothing in this section shall require a health insurer to provide
benefits not otherwise covered by the terms of the health benefits plan.
  (d)  A provider network shall not be determined to be insufficient for
failure to contract with any provider unwilling to contract under the same
terms and conditions, including reimbursement levels, as such health insurer
offers to other similarly situated health care providers.
  New Sec. 23.  The commissioner of insurance may adopt rules and regulations
as nec essary to implement the provisions of the patient protection act.

760                          JOURNAL OF THE SENATE

  Sec. 24.  K.S.A. 40-2201 is hereby amended to read as follows: 40-2201.
(a) The term ``policy of accident and sickness insurance'' as used
herein includes any policy or contract insuring against loss resulting from
sickness or bodily injury or death by accident, or both, issued by a stock,
or mutual company or association or any other insurer.
  (b)  The term ``policy of stop loss or excess loss insurance coverage''
means a policy, contract, endorsement, attachments, amendments or other
modifications that insure against losses of the policyholder issued by a
stock, or mutual company or association or any other insurer.
  New Sec. 25.  Sections 25 to 33, inclusive, and amendments thereto shall be
known and may be cited as the woman's-right-to-know act.
  Sec. 26.  K.S.A. 65-6701 is hereby amended to read as follows: 65-6701. As
used in this act:
  (a)  ``Abortion'' means the use of any means to intentionally terminate a
pregnancy except for the purpose of causing a live birth. Abortion does not
include: (1) The use of any drug or device that inhibits or prevents
ovulation, fertilization or the implantation of an embryo; or (2) disposition
of the product of in vitro fertilization prior to implantation.
  (b)  ``Counselor'' means a person who is: (1) Licensed to practice
medicine and surgery;   (2) licensed to practice psychology; (3) licensed to
practice professional or practical nursing;   (4) registered to practice
professional counseling; (5) licensed as a social worker; (6) the holder of a
master's or doctor's degree from an accredited graduate school of social
work;   (7) registered to practice marriage and family therapy; (8) a
registered physician's assistant; or (9) a currently ordained member of the
clergy or religious authority of any religious denomination or society.
Counselor does not include the physician who performs or induces the abortion
or a physician or other person who assists in performing or inducing the abor
tion.
  (c)  ``Department'' means the department of health and environment.
  (d)  ``Gestational age'' means the time that has elapsed since the first
day of the woman's last menstrual period.
  (e)  ``Medical emergency'' means that condition which, on the basis of the
physician's good faith clinical judgment, so complicates the medical
condition of a pregnant woman as to necessitate the immediate abortion of her
pregnancy to avert her death or for which a delay will create serious risk of
substantial and irreversible impairment of a major bodily function.
  (f)  ``Minor'' means a person less than 18 years of age.
  (d) (g)  ``Physician'' means a person licensed to practice
medicine and surgery in this state.
  (e) (h)  ``Pregnant'' or ``pregnancy'' means that female
reproductive condition of having a fetus in the mother's body.
  (i)  ``Qualified person'' means an agent of the physician who is a
psychologist, licensed social worker, registered professional counselor,
registered nurse or physician.
  (j)  ``Unemancipated minor'' means any minor who has never been: (1)
Married; or (2) freed, by court order or otherwise, from the care, custody
and control of the minor's parents.
  (f) (k)  ``Viable'' means that stage of gestation when, in the
best medical judgment of the attending physician, the fetus is capable of
sustained survival outside the uterus without the application of
extraordinary medical means.
  New Sec. 27.  No abortion shall be performed or induced without the
voluntary and informed consent of the woman upon whom the abortion is to be
performed or induced. Except in the case of a medical emergency, consent to
an abortion is voluntary and informed only if:
  (a)  At least 24 hours before the abortion the physician who is to perform
the abortion or the referring physician has informed the woman in writing of:
  (1)  The name of the physician who will perform the abortion;
  (2)  a description of the proposed abortion method;
  (3)  a description of risks related to the proposed abortion method,
including risks to the woman's reproductive health and alternatives to the
abortion that a reasonable patient would consider material to the decision of
whether or not to undergo the abortion;

                                  May 3, 1997                               761

  (4)  the probable gestational age of the fetus at the time the abortion is
to be performed and that Kansas law requires the following: ``No person shall
perform or induce an abortion when the fetus is viable unless such person is
a physician and has a documented referral from another physician not
financially associated with the physician performing or inducing the abortion
and both physicians determine that: (1) The abortion is necessary to preserve
the life of the pregnant woman; or (2) the fetus is affected by a severe or
life-threatening deformity or abnormality.'' If the child is born alive, the
attending physician has the legal obligation to take all reasonable steps
necessary to maintain the life and health of the child;
  (5)  the probable anatomical and physiological characteristics of the fetus
at the time the abortion is to be performed;
  (6)  the medical risks associated with carrying a fetus to term; and
  (7)  any need for anti-Rh immune globulin therapy, if she is Rh negative,
the likely consequences of refusing such therapy and the cost of the therapy.
  (b)  At least 24 hours before the abortion, the physician who is to perform
the abortion, the referring physician or a qualified person has informed the
woman in writing that:
  (1)  Medical assistance benefits may be available for prenatal care,
childbirth and neo natal care, and that more detailed information on the
availability of such assistance is con tained in the printed materials given
to her and described in section 28 and amendments thereto;
  (2)  the printed materials in section 28 and amendments thereto describe
the fetus and list agencies which offer alternatives to abortion with a
special section listing adoption serv ices;
  (3)  the father of the fetus is liable to assist in the support of her
child, even in instances where he has offered to pay for the abortion except
that in the case of rape this information may be omitted; and
  (4)  the woman is free to withhold or withdraw her consent to the abortion
at any time prior to invasion of the uterus without affecting her right to
future care or treatment and without the loss of any state or
federally-funded benefits to which she might otherwise be entitled.
  (c)  Prior to the abortion procedure, prior to physical preparation for the
abortion and prior to the administration of medication for the abortion, the
woman shall meet privately with the physician who is to perform the abortion
and such person's staff to ensure that she has an adequate opportunity to ask
questions of and obtain information from the physician concerning the
abortion.
  (d)  At least 24 hours before the abortion, the woman is given a copy of
the printed materials described in section 28 and amendments thereto. If the
woman asks questions concerning any of the information or materials, answers
shall be provided to her in her own language.
  (e)  The woman certifies in writing on a form provided by the department,
prior to the abortion, that the information required to be provided under
subsections (a), (b) and (d) has been provided and that she has met with the
physician who is to perform the abortion on an individual basis as provided
under subsection (c). All physicians who perform abortions shall report the
total number of certifications received monthly to the department. The
department shall make the number of certifications received available on an
annual basis.
  (f)  Prior to the performance of the abortion, the physician who is to
perform the abortion or the physician's agent receives a copy of the written
certification prescribed by subsection   (e) of this section.
  (g)  The woman is not required to pay any amount for the abortion procedure
until the 24-hour waiting period has expired.
  New Sec. 28.  (a) The department shall cause to be published and
distributed widely, within 30 days after the effective date of this act, and
shall update on an annual basis, the following easily comprehensible printed
materials:
  (1)  Geographically indexed materials designed to inform the woman of
public and pri vate agencies and services available to assist a woman through
pregnancy, upon childbirth and while her child is dependent, including but
not limited to, adoption agencies. The materials shall include a
comprehensive list of the agencies, a description of the services they offer
and the telephone numbers and addresses of the agencies; and inform the woman

762                          JOURNAL OF THE SENATE

about available medical assistance benefits for prenatal care, childbirth and
neonatal care and about the support obligations of the father of a child who
is born alive. The department shall ensure that the materials described in
this section are comprehensive and do not directly or indirectly promote,
exclude or discourage the use of any agency or service de scribed in this
section. The materials shall also contain a toll-free 24-hour a day telephone
number which may be called to obtain, orally, such a list and description of
agencies in the locality of the caller and of the services they offer. The
materials shall state that it is unlawful for any individual to coerce a
woman to undergo an abortion, that any physician who per forms an abortion
upon a woman without her informed consent may be liable to her for damages.
Kansas law permits adoptive parents to pay costs of prenatal care, childbirth
and neonatal care. The materials shall include the following statement:
     ``Many public and private agencies exist to provide counseling and
   information on available services. You are strongly urged to seek their
   assistance to obtain guidance during your pregnancy. In addition, you are
   encouraged to seek information on abortion services, alternatives to
   abortion, including adoption, and resources availa ble to post-partum
   mothers. The law requires that your physician or the physician's agent
   provide the enclosed information.''
  (2)  Materials that inform the pregnant woman of the probable anatomical and
physio logical characteristics of the fetus at two-week gestational increments
from fertilization to full term, including pictures or drawings representing
the development of a fetus at twoweek gestational increments, and any relevant
information on the possibility of the fetus' survival. Any such pictures or
drawings shall contain the dimensions of the fetus and shall be realistic. The
materials shall be objective, nonjudgmental and designed to convey only
accurate scientific information about the fetus at the various gestational
ages. The material shall also contain objective information describing the
methods of abortion procedures com monly employed, the medical risks commonly
associated with each such procedure and the medical risks associated with
carrying a fetus to term.
  (3)  A certification form to be used by physicians or their agents under
subsection (e) of section 27 and amendments thereto, which will list all the
items of information which are to be given to women by physicians or their
agents under the woman's-right-to-know act.
  (b)  The materials required under this section shall be printed in a typeface
large enough to be clearly legible. The materials shall be made available in
both English and Spanish language versions.
  (c)  The materials required under this section shall be available at no cost
from the department upon request and in appropriate number to any person,
facility or hospital.
  New Sec. 29.  Where a medical emergency compels the performance of an
abortion, the physician shall inform the woman, before the abortion if
possible, of the medical indi cations supporting the physician's judgment that
an abortion is necessary to avert her death or to avert substantial and
irreversible impairment of a major bodily function.
  New Sec. 30.  Any physician who intentionally, knowingly or recklessly fails
to provide informed consent pursuant to the woman's-right-to-know act is guilty
of unprofessional conduct as defined in K.S.A. 65-2837 and amendments thereto.
  New Sec. 31.  Any physician who complies with the provisions of this act
shall not be held civilly liable to a patient for failure to obtain informed
consent to the abortion.
  New Sec. 32.  The provisions of this act are declared to be severable, and if
any provi sion, word, phrase or clause of the act or the application thereof to
any person shall be held invalid, such invalidity shall not affect the validity
of the remaining portions of the woman'sright-to-know act.
  New Sec. 33.  (a) Nothing in the woman's-right-to-know act shall be construed
as cre ating or recognizing a right to abortion.
  (b)  It is not the intention of the woman's-right-to-know act to make lawful
an abortion that is currently unlawful.
  Sec. 34.  K.S.A. 40-2118, 40-2201, 40-2228, 65-6701 and 65-6706 and K.S.A.
1996 Supp. 40-2,105, 40-2119, 40-2121, 40-2122, 40-2124, 40-2209, 40-2209d,
40-2209f and 40-3209 are hereby repealed.'';
  Renumber remaining sections accordingly;

                                  May 3, 1997                               763

  On page 1, in the title, by striking lines 14 to 24, inclusive, and inserting
the following:
``AN ACT relating to health care; relating to accident and health insurance;
group and individual policies of insurance; patient protection;
women's-right-to-know; amending K.S.A. 40-2118, 40-2201, 40-2228 and 65-6701
and K.S.A. 1996 Supp. 40-2,105, 402119, 40-2121, 40-2122, 40-2124, 40-2209,
40-2209d, 40-2209f and 40-3209 and re pealing the existing sections; also
repealing K.S.A. 65-6706.'';
  And your committee on conference recommends the adoption of this report.
Susan Wagle
Dennis M. Wilson
Nancy Kirk Conferees on part of House Don Steffes
Sandy Praeger
Paul Feleciano, Jr. Conferees on part of Senate   Senator Steffes moved the
Senate adopt the Conference Committee report on SB 204.
  On roll call, the vote was: Yeas 36, nays 0, present and passing 1; absent or
not voting 3.
  Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan,
Downey, Emert, Feleciano, Gilstrap, Goodwin, Hardenburger, Harrington, Hensley,
Jones, Jordan, Karr, Kerr, Langworthy, Lawrence, Lee, Morris, Praeger, Pugh,
Ranson, Salisbury, Salmans, Schraad, Steffes, Steineger, Tyson, Umbarger,
Vidricksen.
  Present and passing: Huelskamp.
  Absent or not voting: Gooch, Oleen, Petty.
  The Conference Committee report was adopted.

CONFERENCE COMMITTEE REPORT

  Mr. President and Mr. Speaker: Your committee on conference on Senate amend
ments to HB 2278, submits the following report:
  The House accedes to all Senate amendments to the bill, and your committee on
con ference further agrees to amend the bill, as printed as Amended by Senate
on Final Action, as follows:
  On page 1, in the title, in line 27, by striking ``assist'';
  And your committee on conference recommends the adoption of this report.
Sandy Praeger
Larry D. Salmans
Chris Steineger Conferees on part of Senate Carlos Mayans
James E. Morrison
Jerry Henry Conferees on part of House   Senator Praeger moved the Senate adopt
the Conference Committee report on HB 2278.
  On roll call, the vote was: Yeas 37, nays 0, present and passing 0; absent or
not voting 3.
  Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan,
Downey, Emert, Feleciano, Gilstrap, Goodwin, Hardenburger, Harrington, Hensley,
Huelskamp, Jones, Jordan, Karr, Kerr, Langworthy, Lawrence, Lee, Morris,
Praeger, Pugh, Ranson, Salisbury, Salmans, Schraad, Steffes, Steineger, Tyson,
Umbarger, Vidricksen.
  Absent or not voting: Gooch, Oleen, Petty.
  The Conference Committee report was adopted.

ORIGINAL MOTION

  Senator Emert moved that subsection 4(k) of the Joint Rules of the Senate and
House of Representatives be suspended for the purpose of considering the
following bill: HB 2007.

764                          JOURNAL OF THE SENATE

CONFERENCE COMMITTEE REPORT
    Mr. President and Mr. Speaker: Your committee on conference on Senate amend
ments to HB 2007, submits the following report:
  The House accedes to all Senate amendments to the bill, and your committee on
con ference further agrees to amend the bill, as printed with Senate Committee
of the Whole amendments, as follows:
  On page 61, by striking lines 14 through 43;
  By striking pages 62 through 67;
  On page 68, preceding line 1, by inserting the following:
  ``Sec. 37.  K.S.A. 61-1729 is hereby amended to read as follows: 61-1729. An
action filed under chapter 61 of the Kansas Statutes Annotated, except an
action filed pursuant to the small claims procedure act, may upon motion of a
party and order of the court for good cause shown, be thereafter governed by
the provisions of chapter 60 of the Kansas Statutes Annotated. The party
obtaining an order under this section shall pay any additional docket fee
required had the action been filed under chapter 60 of the Kansas Statutes
Annotated. Upon such order of the court and payment of any additional docket
under this section, the clerk of the district court shall renumber the case as
a case filed under chapter 60 of the Kansas Statutes Annotated in the same
manner as required by K.S.A. 60-2418 and amend ments thereto.'';
  And by renumbering the remaining sections accordingly;
  Also on page 68, in line 5, before ``60-2007'' by striking ``60-717,''; in
line 6, by striking ``61-2005'' and inserting ``61-1729''; also in line 6,
after ``60-1608'' by striking ``and''; in line 7, by striking ``60-2310'';
  In the title, on page 1, in line 18, by striking ``60-717,''; in line 19, by
striking ``61-2005'' and inserting ``61-1729''; in line 20, by striking ``and
60-2310'';
  And your committee on conference recommends the adoption of this report. Tim
Emert
Edward W. Pugh
Greta Goodwin Conferees on part of Senate Tim Carmody
Terry Presta
Jim D. Garner Conferees on part of House   Senator Emert moved the Senate adopt
the Conference Committee report on HB 2007.
  On roll call, the vote was: Yeas 36, nays 1, present and passing 0; absent or
not voting 3.
  Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan,
Downey, Emert, Feleciano, Gilstrap, Goodwin, Hardenburger, Harrington, Hensley,
Huelskamp, Jones, Jordan, Karr, Langworthy, Lawrence, Lee, Morris, Praeger,
Pugh, Ranson, Salisbury, Salmans, Schraad, Steffes, Steineger, Tyson, Umbarger,
Vidricksen.
  Nays: Kerr.
  Absent or not voting: Gooch, Oleen, Petty.
  The Conference Committee report was adopted.

REPORT ON ENGROSSED BILLS

  SB 17 reported correctly engrossed May 3, 1997.
  SB 87 reported correctly re-engrossed May 3, 1997.

REPORT ON ENROLLED BILLS

  SR 1860, 1861, 1862, 1863, 1864 reported correctly enrolled, properly
signed and presented to the Secretary of the Senate on May 3, 1997.
  On motion of Senator Emert the Senate adjourned until 2:00 p.m., Sunday, May
4, 1997.


                                  May 3, 1997                               765

                                           HELEN A. MORELAND, Journal Clerk.
PAT SAVILLE, Secretary of the Senate.
                                      +--+
                                      |  |
                                      +--+