February 5, 1998


Journal of the House


SEVENTEENTH DAY
______
Hall of the House of Representatives, Topeka, KS,
Thursday, February 5, 1998, 11:00 a.m. 
 The House met pursuant to adjournment with Speaker pro tem Wagle in the chair.

 The roll was called with 122 members present.

 Rep. Lloyd was excused on verified illness.

 Rep. Benlon was excused on excused absence by the Speaker.

 Prayer by guest chaplain, Mr. Brian Stuber, Lafontaine Christian Church, Fredonia, and
guest of Rep. Compton:

      Father,

       We lift your name up today because without you our efforts would be in vain. I
      pray that this morning as the leadership which you have assembled makes decisions
      for the people of Kansas, I pray that you will guide them. That you will grant wisdom.
      And that all that goes on here today will be to your glory and satisfaction. Thank you
      for those here today. Thank you for their ability to lead and for their desire to serve.
      Again Lord I would like to place this day into your hands and let your will be carried
      out. Let your name be praised by that which happens here today and with each of
      our lives every day. For you alone are worthy. Amen.

INTRODUCTION OF BILLS AND CONCURRENT RESOLUTIONS

 The following bills were introduced and read by title:

 HB 2824, An act concerning criminal procedure; establishing the Pittsburg state univer-
sity regional crime laboratory; relating to forensic examinations; amending K.S.A. 1997 Supp.
22-2902a and repealing the existing section, by Representative Howell.

 HB 2825, An act concerning children; relating to the age of eligibility for attendance at
school; amending K.S.A. 1997 Supp. 72-1107 and repealing the existing section, by Rep-
resentative Horst.

 HB 2826, An act concerning the department of corrections; relating to the correctional
industries fund; amending K.S.A. 75-3717b, 75-5281, 75-5282, and 75-5288 and repealing
the existing sections, by Joint Committee on Corrections and Juvenile Justice Oversight.

 HB 2827, An act concerning private elementary or secondary schools; allowing children
instructed at such schools to participate in interscholastic extracurricular activities on behalf
of public schools; amending K.S.A. 72-132 and repealing the existing section, by Committee
on Education.

 HB 2828, An act providing for Kansas tax overpayment rebates, by Representatives Greg-
ory, Boston, Cook, Dahl, Faber, Franklin, Freeborn, Horst, Howell, Jennison, Phill Kline,
Landwehr, Mason, Mayans, Mays, Osborne, Palmer, Powell, Powers, Presta, Shallenburger,
Shore, Shultz, Tanner, Toplikar, Vining, Wagle and Weber.

 HB 2829, An act concerning confined hog breeding, farrowing, feeding or finishing fa-
cilities'ohibiting the issuance of certain permits therefor during specified period; directing
secretary of health and environment to adopt certain rules and regulations; directing audit
by legislative post audit; amending K.S.A. 1997 Supp. 65-166a, 65-171d and 65-3005 and
repealing the existing sections, by Committee on Agriculture.

 HB 2830, An act concerning the Kansas universal service fund; exempting certain public
institutions from contributing thereto; amending K.S.A. 1997 Supp. 66-2008 and repealing
the existing section, by Joint Committee on Computers and Telecommunications.

 HB 2831, An act concerning workers compensation; relating to subcontracting by li-
censed motor carriers; amending K.S.A. 1997 Supp. 44-503 and repealing the existing sec-
tion, by Committee on Business, Commerce and Labor.

REFERENCE OF BILLS AND CONCURRENT RESOLUTIONS

 The following bills and resolutions were referred to committees as indicated:

 Agriculture: HB 2797.

 Appropriations: HB 2801.

 Business, Commerce and Labor: HB 2799.

 Calendar and Printing: HB 2811.

 Education: HB 2804, 2805, 2807, 2808.

 Environment: HB 2796, 2798.

 Financial Institutions: HB 2809.

 Governmental Organization and Elections: HB 2806, 2810, 2812, 2813, 2814.

 Insurance: HB 2800.

 Judiciary: HB 2795, 2816, 2817, 2818, 2819, 2820, 2821, 2822, 2823.

 Taxation: HB 2815.

 Transportation: HB 2803.

 Utilities: HB 2802.

CHANGE OF REFERENCE

 Speaker pro tem Wagle announced the withdrawal of HB 2784 from Committee on
Health and Human Services and referral to Committee on Insurance.

COMMUNICATIONS FROM STATE OFFICERS

 From the Honorable Richard Walker, Chairperson, Kansas Sentencing Commission, in
accordance with K.S.A. 21-4725, Report to the 1998 Kansas Legislature, Proposed Modi-
fications to Current Sentencing Policies.

 The complete report is kept on file and open for inspection in the office of the Chief
Clerk.

CONSENT CALENDAR

 No objection was made to HB 2687, 2718, 2727; HCR 5030 appearing on the Consent
Calendar for the first day.

FINAL ACTION ON BILLS AND CONCURRENT RESOLUTIONS

 HB 2590, An act concerning housing development in rural cities and counties; providing
for the creation of rural housing incentive districts in such cities and counties, was considered
on final action.

 On roll call, the vote was: Yeas 116; Nays 6; Present but not voting: 0; Absent or not
voting: 2.

 Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Boston, Burroughs, Camp-
bell, Carmody, Compton, Cook, Correll, Cox, Dahl, Dean, Dillon, Dreher, Edmonds, Emp-
son, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Freeborn, Gar-
ner, Geringer, Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett, Helgerson,
Henderson, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison,
Johnson, Johnston, Kejr, Kirk, Klein, Phil Kline, Krehbiel, Kuether, Landwehr, Lane, Lar-
kin, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKinney, Minor,
Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Osborne, Palmer,
Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, Ray, Reardon,
Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Sharp, Shore, Showalter, Shriver, Shultz,
Sloan, Stone, Storm, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wa-
gle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson.

 Nays: Crow, Phill Kline, Packer, Shallenburger, Spangler, Swenson.

 Present but not voting: None.

 Absent or not voting: Benlon, Lloyd.

 The bill passed, as amended.

 HB 2635, An act concerning debts owed to the state; relating to the state debt setoff
program; amending K.S.A. 75-6202 and repealing the existing section; also repealing K.S.A.
75-6202b, was considered on final action.

 On roll call, the vote was: Yeas 96; Nays 26; Present but not voting: 0; Absent or not
voting: 2.

 Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Boston, Burroughs, Camp-
bell, Carmody, Compton, Cook, Correll, Cox, Crow, Dahl, Dillon, Dreher, Edmonds, Emp-
son, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Freeborn, Gar-
ner, Geringer, Gilbert, Gilmore, Glasscock, Gregory, Haley, Hayzlett, Helgerson,
Henderson, Henry, Holmes, Horst, Huff, Humerickhouse, Hutchins, Johnson, Johnston,
Kejr, Kirk, Phil Kline, Phill Kline, Krehbiel, Kuether, Lane, Larkin, Mayans, McClure,
McCreary, McKinney, Minor, Morrison, Myers, O'Neal, Osborne, Palmer, E. Peterson, J.
Peterson, Phelps, Powell, Powers, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer,
Schwartz, Showalter, Shriver, Shultz, Sloan, Storm, Thimesch, Toelkes, Tomlinson, Topli-
kar, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson.

 Nays: Dean, Grant, Howell, Jennison, Klein, Landwehr, P. Long, Mason, Mays, Mc-
Kechnie, Mollenkamp, Neufeld, Nichols, O'Connor, Packer, Pauls, Pottorff, Presta, Shal-
lenburger, Sharp, Shore, Spangler, Stone, Swenson, Tanner, Vickrey.

 Present but not voting: None.

 Absent or not voting: Benlon, Lloyd.

 The bill passed.

 HB 2731, An act concerning municipalities; relating to urban renewal; amending K.S.A.
17-4759 and repealing the existing section, was considered on final action.

 On roll call, the vote was: Yeas 122; Nays 0; Present but not voting: 0; Absent or not
voting: 2.

 Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Boston, Burroughs, Camp-
bell, Carmody, Compton, Cook, Correll, Cox, Crow, Dahl, Dean, Dillon, Dreher, Edmonds,
Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Freeborn,
Garner, Geringer, Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett, Helgerson,
Henderson, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison,
Johnson, Johnston, Kejr, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr,
Lane, Larkin, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKinney,
Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Osborne,
Packer, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta,
Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore,
Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch,
Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer,
Wempe, Wilk, Wilson.

 Nays: None.

 Present but not voting: None.

 Absent or not voting: Benlon, Lloyd.

 The bill passed.

 On motion of Rep. Jennison, the House went into Committee of the Whole, with Rep.
Hayzlett in the chair.

COMMITTEE OF THE WHOLE

 On motion of Rep. Hayzlett, Committee of the Whole report, as follows, was adopted:

 Recommended that HB 2783, 2683 be passed.

 HB 2534 be passed over and retain a place on the calendar.

 Committee report to HB 2613 be adopted and the bill be passed as amended.

REPORTS OF STANDING COMMITTEES

    The Committee on Economic Development recommends HCR 5028 be amended on
page 1, in line 21, by striking ``is important'' and inserting ``has long been the most critical
issue''; in line 22, before ``economy'', by inserting ``agricultural''; also in line 22, by striking
``has long been a''; in line 23, by striking all before ``economic''; in line 25, by striking
``Kansas'' and inserting ``Kansas' agricultural''; in line 34, before ``costs'', by inserting ``sub-
stantial''; in line 35, before the semicolon, by inserting ``without the United States depart-
ment of agriculture's imminent communication and intervention''; in line 37, by striking
``important'' and inserting ``critical''; also in line 37, by striking ``economy'' and inserting
``socioeconomic survival''; in line 42, by striking ``The service indicated that communication''
and inserting:

    ``WHEREAS, Communication'';

    On page 2, in line 1, by striking ``related to'' and inserting ``regarding''; in line 4, after
``state'', by inserting ``small meat processing plants''; in line 5, by striking all after ``still''; in
line 6, by striking ``ongoing existence'' and inserting ``survive''; in line 8, by striking ``must
be made''; in line 9, by striking ``continued existence'' and inserting ``survival''; in line 10,
by striking all after ``Kansas'' and inserting ``must be achieved by''; in line 13, by striking
``communicate and cooperate'' and inserting ``communication and cooperation''; also in line
13, after ``remove'', by inserting ``these''; in line 14, by striking ``by small meat processing
plants'' and inserting ``is critical''; in line 17, by striking ``urge'' and inserting ``request''; in
line 19, by striking ``continue communications with'' and inserting ``communicate and re-
spond to the critical socioeconomic plight of Kansas'''; in line 20, after ``Kansas'', by inserting
``and the Secretary of the United States department of agriculture''; in line 21, before ``im-
pact'', by inserting ``critical''; in line 22, before ``small'', by inserting ``these''; also in line 22,
by striking ``throughout the state''; and the concurrent resolution be adopted as amended.

    The Committee on Environment recommends HB 2419 be amended on page 1, in line
25, after ``To'' by inserting ``knowingly and willfully''; in line 28, after ``sections'' by inserting
``, or as permitted by the commission''; after line 28, by inserting:

    ``(2) to dispose of any substance not exempt under 40 C.F.R. 261.4(b)(5), as revised July
1, 1997, in a class II disposal or injection well;'';

    Also on page 1, in line 29, by striking ``(2)'' and inserting ``(3)''; in line 33, by striking ``(3)''
and inserting ``(4)''; in line 38, after ``chlorides'' by inserting ``and produced in conjunction
with the production of oil or natural gas'';

    On page 2, in line 9, by striking ``10'' and inserting ``8''; in line 10, by striking ``of paragraph
(1)''; in line 18, after ``thereby'' by inserting ``except when noncompliance with this section
is due to one or more causes beyond the control of such person and, once such person
knows or should have known of such noncompliance, such person takes immediate and
reasonable steps to gain prompt and full compliance with the applicable statutes and rules
and regulations''; by striking all of lines 27 through 36 and inserting:

    ``Sec. 4. K.S.A. 55-1005 is hereby amended to read as follows: 55-1005. It shall be
unlawful to use wells for the disposal of salt brines or other oil field wastes which do not
meet the requirements for minimum depth established by the rules and regulations of the
corporation commission. The state corporation commission shall inspect such wells to as-
certain whether they meet such requirements for minimum depth. Any person, firm, part-
nership, association or corporation knowingly and willfully violating the provisions of this
  a/ct section, shall be deemed guilty of a   misdemeanor and upon conviction, shall be punished
by a fine of not less than $50 nor more than $500 severity level 9, nonperson felony. Each
day of violation shall be considered to constitute a separate offense.''; and the bill be passed
as amended.

    The Committee on Health and Human Services recommends SCR 1613 be amended
on page 1, in line 35, after ``services'' where it appears for the first time, by inserting: ``which
may include representatives of groups interested in improvement of the quality of long-
term care, dementia, Alzheimer's disease and in long-term care for persons with disabling
conditions''; also in line 35, before the semicolon, by inserting: ``which may include a rep-
resentative of for profit adult care homes, nonprofit adult care homes, free-standing assisted
living facilities and adult day care--home health care agencies'';

    On page 2, in line 21, by striking ``12, 1998'' and inserting ``11, 1999''; and the concurrent
resolution be adopted as amended.

 The Committee on Insurance recommends SB 411, 412 as amended by Senate Com-
mittee, be passed and, because the committee is of the opinion that the bills are of a
noncontroversial nature, be placed on the consent calendar.

    The Committee on Judiciary recommends SB 8, as amended by Senate Committee, be
amended on page 5, in line 28, by striking ``(1)'' and inserting ``(A)''; in line 30, by striking
``(2)'' and inserting ``(B)''; in line 32, by striking ``(3)'' and inserting ``(C)'';

    On page 7, in line 10, by striking ``1998'' and inserting ``1999''; and the bill be passed as
amended.

    The Committee on Judiciary recommends SB 9, as amended by Senate Committee, be
amended on page 1, in line 14, before ``Section'' by inserting ``New'';

    On page 2, in line 15, by striking ``57'' and inserting ``59''; in line 18, before ``Sec.'' by
inserting ``New'';

    On page 3, in line 7, before ``Sec.'' by inserting ``New''; in line 42, before ``Sec.'' by
inserting ``New'';

    On page 4, in line 3, before ``Sec.'' by inserting ``New''; in line 34, before ``Sec.'' by
inserting ``New''; in line 41, before ``Sec.'' by inserting ``New''; in line 43, before ``Sec.'' by
inserting ``New'';

    On page 5, in line 5, before ``Sec.'' by inserting ``New''; in line 36, before ``Sec.'' by
inserting ``New''; in line 38, before ``Sec.'' by inserting ``New'';

    On page 6, in line 18, before ``Sec.'' by inserting ``New''; in line 32, before ``Sec.'' by
inserting ``New'';

    On page 7, in line 27, before ``Sec.'' by inserting ``New'';

    On page 8, in line 39, before ``Sec.'' by inserting ``New'';

    On page 9, in line 3, before ``Sec.'' by inserting ``New''; in line 13, before ``Sec.'' by
inserting ``New''; in line 29, before ``Sec.'' by inserting ``New'';

    On page 10, in line 15, before ``Sec.'' by inserting ``New'';

    On page 11, in line 5, before ``Sec.'' by inserting ``New'';

    On page 12, in line 2, before ``Sec.'' by inserting ``New''; in line 4, before ``Sec.'' by
inserting ``New''; in line 24, before ``Sec.'' by inserting ``New'';

    On page 13, in line 14, before ``Sec.'' by inserting ``New''; in line 36, before ``Sec.'' by
inserting ``New'';

    On page 14, in line 2, before ``Sec.'' by inserting ``New''; in line 5, before ``Sec.'' by
inserting ``New''; in line 9, before ``Sec.'' by inserting ``New''; in line 39, before ``Sec.'' by
inserting ``New'';

    On page 15, in line 20, before ``Sec.'' by inserting ``New'';

    On page 16, in line 38, before ``Sec.'' by inserting ``New'';

    On page 17, in line 19, before ``Sec.'' by inserting ``New''; in line 33, before ``Sec.'' by
inserting ``New'';

    On page 19, in line 17, before ``Sec.'' by inserting ``New''; in line 32, before ``Sec.'' by
inserting ``New'';

    On page 20, in line 13, before ``Sec.'' by inserting ``New''; in line 22, before ``Sec.'' by
inserting ``New''; in line 26, before ``Sec.'' by inserting ``New'';

    On page 21, in line 28, before ``Sec.'' by inserting ``New'';

    On page 22, in line 2, before ``Sec.'' by inserting ``New''; in line 5, by striking ``designate
the appropriate'' and inserting ``district''; in line 16, before ``Sec.'' by inserting ``New''; in
line 22, before ``Sec.'' by inserting ``New''; in line 39, before ``Sec.'' by inserting ``New'';

    On page 23, in line 5, before ``Sec.'' by inserting ``New'';

    On page 24, in line 1, before ``Sec.'' by inserting ``New''; in line 10, before ``Sec.'' by
inserting ``New''; in line 29, before the period by inserting ``and for which the partner is
personally liable under section 17 and amendments thereto''; in line 33, before the period
by inserting ``, provided the obligation is one for which the partner would have been per-
sonally liable under section 17 and amendments thereto if the partnership had not been
converted to a limited partnership''; in line 38, before ``Sec.'' by inserting ``New'';

    On page 25, in line 10, before ``Sec.'' by inserting ``New''; in line 21, before ``Sec.'' by
inserting ``New'';

    On page 26, in line 11, before ``Sec.'' by inserting ``New'';

    On page 27, in line 15, before ``Sec.'' by inserting ``New'';

    On page 28, in line 2, before ``Sec.'' by inserting ``New''; in line 5, before ``Sec.'' by
inserting ``New''; in line 40, before ``Sec.'' by inserting ``New''; in line 43, before ``Sec.'' by
inserting ``New''; also in line 43, by striking everything following ``55.'';

    By striking all on page 29 and inserting the following:

``(a) Every limited liability partnership organized under the laws of this state shall make an
annual report in writing to the secretary of state, stating the prescribed information con-
cerning the limited liability partnership at the close of business on the last day of its tax
period next preceding the date of filing. If the limited liability partnership's tax period is
other than the calendar year, it shall give notice of its different tax period in writing to the
secretary of state prior to December 31 of the year it commences the different tax period.
The annual report shall be filed at the time prescribed by law for filing the limited liability
partnership's annual Kansas income tax return. If the limited liability partnership applies
for an extension of time for filing its annual income tax return under the internal revenue
code, the limited liability partnership shall also apply, not more than 90 days after the due
date of its annual report, to the secretary of state for an extension of the time for filing its
report and an extension shall be granted for a period of time corresponding to that granted
under the internal revenue code. The application shall include a copy of the application to
income tax authorities.

    (b) The annual report shall be made on a form prescribed by the secretary of state. The
report shall contain the following information:

    (1) The name of the limited liability partnership;

    (2) a reconciliation of the capital accounts for the preceding taxable year as required to
be reported on the federal partnership return of income; and

    (3) a list of the partners owning at least 5% of the capital of the partnership, with the
post office address of each.

    (c) The annual report shall be signed by a partner of the limited liability partnership
and forwarded to the secretary of state. At the time of filing the report, the limited liability
partnership shall pay to the secretary of state an annual franchise tax in an amount equal to
$1 for each $1,000 of the net capital accounts located in or used in this state at the end of
the preceding taxable year as required to be reported on the federal partnership return of
income, except that no annual tax shall be less than $20 or more than $2,500.

    (d) The provisions of K.S.A. 17-7509, and amendments thereto, relating to penalties for
failure of a corporation to file an annual report or pay the required franchise tax, and the
provisions of subsection (a) of K.S.A. 17-7510 and amendments thereto, relating to penalties
for failure of a corporation to file an annual report or pay the required franchise tax, shall
be applicable to the statement of qualification of any limited liability partnership which fails
to file its annual report or pay the franchise tax within 90 days of the time prescribed in this
section for filing and paying the same. Whenever the statement of qualification of a limited
liability partnership is forfeited for failure to file an annual report or to pay the required
franchise tax, the limited liability partnership may be reinstated by filing a certificate of
reinstatement, in the manner and form to be prescribed by the secretary of state and paying
to the secretary of state all fees and taxes, including any penalties thereon, due to the state.
The fee for filing a certificate of reinstatement shall be the same as that prescribed by K.S.A.
17-7506, and amendments thereto, for filing a certificate of extension, restoration, renewal
or revival of a corporation's articles of incorporation.

    New Sec. 56. (a) Every foreign limited liability partnership shall make an annual report
in writing to the secretary of state, stating the prescribed information concerning the foreign
limited liability partnership at the close of business on the last day of its tax period next
preceding the date of filing. If the foreign limited liability partnership's tax period is other
than the calendar year, it shall give notice in writing of its different tax period to the secretary
of state prior to December 31 of the year it commences the different tax period. The annual
report shall be filed at the time prescribed by law for filing the foreign limited liability
partnership's annual Kansas income tax return. If the foreign limited liability partnership
applies for an extension of time for filing its annual income tax return under the internal
revenue code, the foreign limited liability partnership shall also apply, not more than 90
days after the due date of its annual report, to the secretary of state for an extension of the
time for filing its report and an extension shall be granted for a period of time corresponding
to that granted under the internal revenue code. The application shall include a copy of the
application to income tax authorities.

    (b) The annual report shall be made on a form prescribed by the secretary of state. The
report shall contain the following information:

    (1) The name of the foreign limited liability partnership; and

    (2) a reconciliation of the capital accounts for the preceding taxable year as required to
be reported on the federal partnership return of income.

    (c) The annual report shall be signed by a partner of the foreign limited liability part-
nership and forwarded to the secretary of state. At the time of filing the report, the foreign
limited liability partnership shall pay to the secretary of state an annual franchise tax in an
amount equal to $1 for each $1,000 of the net capital accounts located in or used in this
state at the end of the preceding taxable year as required to be reported on the federal
partnership return of income, except that no annual tax shall be less than $20 or more than
$2,500.

    (d) The provisions of K.S.A. 17-7509, and amendments thereto, relating to penalties for
failure of a corporation to file an annual report or pay the required franchise tax, and the
provisions of subsection (a) of K.S.A. 17-7510, and amendments thereto, relating to penalties
for failure of a corporation to file an annual report or pay the required franchise tax, shall
be applicable to the statement of foreign qualification of any foreign limited liability part-
nership which fails to file its annual report or pay the franchise tax within 90 days of the
time prescribed in this section for filing and paying the same. Whenever the statement of
foreign qualification of a foreign limited liability partnership is forfeited for failure to file
an annual report or to pay the required franchise tax, the statement of foreign qualification
of the foreign limited liability partnership may be reinstated by filing a certificate of rein-
statement, in the manner and form to be prescribed by the secretary of state and paying to
the secretary of state all fees and taxes, including any penalties thereon, due to the state.
The fee for filing a certificate of reinstatement shall be the same as that prescribed by K.S.A.
17-7506, and amendments thereto, for filing a certificate of extension, restoration, renewal
or revival of a corporation's articles of incorporation.

    New Sec. 57. No limited liability partnership or foreign limited liability partnership
shall be required to file its first annual report under this act, or pay any annual franchise
tax required to accompany such report, unless such partnership has filed its statement of
qualification or foreign qualification at least six months prior to the last day of its tax period.
If any such partnership files with the secretary of state a notice of change in its tax period
and the next annual report filed by such partnership subsequent to such notice is based on
a tax period of less than 12 months, the annual tax liability shall be determined by multiplying
the annual franchise tax liability for such year by a fraction, the numerator of which is the
number of months or any portion thereof covered by the annual report and the denominator
of which is 12, except that the tax shall not be less than $20.'';

    And by renumbering the remaining sections accordingly;

    On page 30, in line 1, before ``Sec.'' by inserting ``New''; in line 13, before ``Sec.'' by
inserting ``New''; in line 15, by striking ``state'' and inserting ``statement''; in line 37, before
``Sec.'' by inserting ``New'';

    On page 31, in line 11, before ``Sec.'' by inserting ``New''; in line 13, by striking ``56'' and
inserting ``58''; also in line 13, by striking ``60'' and inserting ``62''; in line 34, by striking
``56'' and inserting ``58''; also in line 34, by striking ``60'' and inserting ``62''; in line 42, before
``Sec.'' by inserting ``New'';

    On page 32, in line 1, by striking ``56'' and inserting ``58''; also in line 1, by striking ``60''
and inserting ``62''; following line 1, by inserting the following:

    ``New Sec. 63. A partner may not receive a distribution from a limited liability part-
nership to the extent that, after giving effect to the distribution, all liabilities of the limited
liability partnership, other than liabilities to partners on account of their partnership inter-
ests, exceed the fair value of the partnership assets.

    New Sec. 64.  (a) If a partner has received the return of any part of the partner's
contribution without violation of the partnership agreement or this act, the partner is liable
to the limited liability partnership for a period of one year thereafter for the amount of the
returned contribution, but only to the extent necessary to discharge the limited liability
partnership's liabilities to creditors who extended credit to the limited liability partnership
during the period the contribution was held by the partnership.

    (b) If a partner has received the return of any part of the partner's contribution in
violation of the partnership agreement or this act, the partner is liable to the limited liability
partnership for a period of six years thereafter for the amount of the contribution wrongfully
returned.

    (c) A partner receives a return of the partner's contribution to the extent that a distri-
bution to the partner reduces the partner's share of the fair value of the net assets of the
limited liability partnership below the value, as set forth in the records of the limited liability
partnership, of the partner's contribution which has not been distributed to the partner.'';

    And by renumbering the remaining sections accordingly;

    Also on page 32, in line 2, before ``Sec.'' by inserting ``New''; in line 5, before ``Sec.'' by
inserting ``New''; also in line 5, by striking ``This act'' and inserting ``Sections 1 through 69,
and amendments thereto''; also in line 5, before ``uniform'' by inserting ``Kansas''; in line 6,
by striking ``(1994)''; in line 7, before ``Sec.'' by inserting ``New''; in line 12, before ``Sec.''
by inserting ``New''; also in line 12, by striking ``1998'' and inserting ``1999''; in line 20, by
striking ``1998'' and inserting ``1999''; in line 21, by striking ``1998'' and inserting ``1999''; in
line 30, before ``Sec.'' by inserting ``New''; following line 31 by inserting the following:

    ``Sec. 70. K.S.A. 17-2708 is hereby amended to read as follows: 17-2708. Except as
otherwise provided, the Kansas general corporation code contained in K.S.A. 17-6001
et seq., and amendments thereto, shall apply to a professional corporation organized pur-
suant to this chapter. Any provisions of the professional corporation law of Kansas shall take
precedence over any provision of the Kansas general corporation code which conflicts with
it. The provisions of the professional corporation law of Kansas shall take precedence over
any law which prohibits a corporation from rendering any type of professional service. Any
person authorized to form a professional corporation under K.S.A. 17-2701 et seq. and
amendments thereto also may incorporate under the Kansas general corporation code con-
tained in K.S.A. 17-6001 et seq., and amendments thereto, or organize under the Kansas
limited liability company act contained in K.S.A. 17-7601 et seq., and amendments thereto,
or organize as a   (Rx)gistered limited liability partnership as defined in   K.S.A. 56-302 section
1 and amendments thereto.

    Sec. 71. K.S.A. 1997 Supp. 17-5903 is hereby amended to read as follows: 17-5903. As
used in this act:

    (a) ``Corporation'' means a domestic or foreign corporation organized for profit or non-
profit purposes.

    (b) ``Nonprofit corporation'' means a corporation organized not for profit and which
qualifies under section 501(c)(3) of the federal internal revenue code of 1986 as amended.

    (c) ``Limited partnership'' has the meaning provided by K.S.A. 56-1a01, and amend-
ments thereto.

    (d) ``Limited agricultural partnership'' means a limited partnership founded for the pur-
pose of farming and ownership of agricultural land in which:

    (1) The partners do not exceed 10 in number;

    (2) the partners are all natural persons, persons acting in a fiduciary capacity for the
benefit of natural persons or nonprofit corporations, or general partnerships other than
corporate partnerships formed under the laws of the state of Kansas; and

    (3) at least one of the general partners is a person residing on the farm or actively
engaged in the labor or management of the farming operation. If only one partner is meeting
the requirement of this provision and such partner dies, the requirement of this provision
does not apply for the period of time that the partner's estate is being administered in any
district court in Kansas.

    (e) ``Corporate partnership'' means a partnership, as defined in   K.S.A. 56-306 section
1, and amendments thereto, which has within the association one or more corporations or
one or more limited liability companies.

    (f) ``Feedlot'' means a lot, yard, corral, or other area in which livestock fed for slaughter
are confined. The term includes within its meaning agricultural land in such acreage as is
necessary for the operation of the feedlot.

    (g) ``Agricultural land'' means land suitable for use in farming.

    (h) ``Farming'' means the cultivation of land for the production of agricultural crops,
the raising of poultry, the production of eggs, the production of milk, the production of fruit
or other horticultural crops, grazing or the production of livestock. Farming does not include
the production of timber, forest products, nursery products or sod, and farming does not
include a contract to provide spraying, harvesting or other farm services.

    (i) ``Fiduciary capacity'' means an undertaking to act as executor, administrator, guard-
ian, conservator, trustee for a family trust, authorized trust or testamentary trust or receiver
or trustee in bankruptcy.

    (j) ``Family farm corporation'' means a corporation:

    (1) Founded for the purpose of farming and the ownership of agricultural land in which
the majority of the voting stock is held by and the majority of the stockholders are persons
related to each other, all of whom have a common ancestor within the third degree of
relationship, by blood or by adoption, or the spouses or the stepchildren of any such persons,
or persons acting in a fiduciary capacity for persons so related;

    (2) all of its stockholders are natural persons or persons acting in a fiduciary capacity
for the benefit of natural persons; and

    (3) at least one of the stockholders is a person residing on the farm or actively engaged
in the labor or management of the farming operation. A stockholder who is an officer of
any corporation referred to in this subsection and who is one of the related stockholders
holding a majority of the voting stock shall be deemed to be actively engaged in the man-
agement of the farming corporation. If only one stockholder is meeting the requirement of
this provision and such stockholder dies, the requirement of this provision does not apply
for the period of time that the stockholder's estate is being administered in any district court
in Kansas.

    (k) ``Authorized farm corporation'' means a Kansas corporation, other than a family farm
corporation, all of the incorporators of which are Kansas residents, family farm corporations
or family farm limited liability agricultural companies or any combination thereof, and which
is founded for the purpose of farming and the ownership of agricultural land in which:

    (1) The stockholders do not exceed 15 in number; and

    (2) the stockholders are all natural persons, family farm corporations, family farm lim-
ited liability agricultural companies or persons acting in a fiduciary capacity for the benefit
of natural persons, family farm corporations, family farm limited liability agricultural com-
panies or nonprofit corporations; and

    (3) if all of the stockholders are natural persons, at least one stockholder must be a
person residing on the farm or actively engaged in labor or management of the farming
operation. If only one stockholder is meeting the requirement of this provision and such
stockholder dies, the requirement of this provision does not apply for the period of time
that the stockholder's estate is being administered in any district court in Kansas.

    (l) ``Trust'' means a fiduciary relationship with respect to property, subjecting the person
by whom the property is held to equitable duties to deal with the property for the benefit
of another person, which arises as a result of a manifestation of an intention to create it. A
trust includes a legal entity holding property as trustee, agent, escrow agent, attorney-in-
fact and in any similar capacity.

    (m) ``Family trust'' means a trust in which:

    (1) A majority of the equitable interest in the trust is held by and the majority of the
beneficiaries are persons related to each other, all of whom have a common ancestor within
the third degree of relationship, by blood or by adoption, or the spouses or stepchildren of
any such persons, or persons acting in a fiduciary capacity for persons so related; and

    (2) all the beneficiaries are natural persons, are persons acting in a fiduciary capacity,
other than as trustee for a trust, or are nonprofit corporations.

    (n) ``Authorized trust'' means a trust other than a family trust in which:

    (1) The beneficiaries do not exceed 15 in number;

    (2) the beneficiaries are all natural persons, are persons acting in a fiduciary capacity,
other than as trustee for a trust, or are nonprofit corporations; and

    (3) the gross income thereof is not exempt from taxation under the laws of either the
United States or the state of Kansas.

    For the purposes of this definition, if one of the beneficiaries dies, and more than one
person succeeds, by bequest, to the deceased beneficiary's interest in the trust, all of such
persons, collectively, shall be deemed to be one beneficiary, and a husband and wife, and
their estates, collectively, shall be deemed to be one beneficiary.

    (o) ``Testamentary trust'' means a trust created by devising or bequeathing property in
trust in a will as such terms are used in the Kansas probate code.

    (p) ``Poultry confinement facility'' means the structures and related equipment used for
housing, breeding, laying of eggs or feeding of poultry in a restricted environment. The term
includes within its meaning only such agricultural land as is necessary for proper disposal
of liquid and solid wastes and for isolation of the facility to reasonably protect the confined
poultry from exposure to disease. As used in this subsection, ``poultry'' means chickens,
turkeys, ducks, geese or other fowl.

    (q) ``Rabbit confinement facility'' means the structures and related equipment used for
housing, breeding, raising, feeding or processing of rabbits in a restricted environment. The
term includes within its meaning only such agricultural land as is necessary for proper
disposal of liquid and solid wastes and for isolation of the facility to reasonably protect the
confined rabbits from exposure to disease.

    (r) ``Swine marketing pool'' means an association whose membership includes three or
more business entities or individuals formed for the sale of hogs to buyers but shall not
include any trust, corporation, limited partnership or corporate partnership, or limited lia-
bility company other than a family farm corporation, authorized farm corporation, limited
liability agricultural company, limited agricultural partnership, family trust, authorized trust
or testamentary trust.

    (s) ``Swine production facility'' means the land, structures and related equipment owned
or leased by a corporation or limited liability company and used for housing, breeding,
farrowing or feeding of swine. The term includes within its meaning only such agricultural
land as is necessary for proper disposal of liquid and solid wastes in environmentally sound
amounts for crop production and to avoid nitrate buildup and for isolation of the facility to
reasonably protect the confined animals from exposure to disease.

    (t) ``Limited liability company'' has the meaning provided by K.S.A. 17-7602, and
amendments thereto.

    (u) ``Limited liability agricultural company'' means a limited liability company founded
for the purpose of farming and ownership of agricultural land in which:

    (1) The members do not exceed 10 in number; and

    (2) the members are all natural persons, family farm corporations, family farm limited
liability agriculture companies, persons acting in a fiduciary capacity for the benefit of nat-
ural persons, family farm corporations, family farm limited liability agricultural companies
or nonprofit corporations, or general partnerships other than corporate partnerships formed
under the laws of the state of Kansas; and

    (3) if all of the members are natural persons, at least one member must be a person
residing on the farm or actively engaged in labor or management of the farming operation.
If only one member is meeting the requirement of this provision and such member dies,
the requirement of this provision does not apply for the period of time that the member's
estate is being administered in any district court in Kansas.

    (v) ``Dairy production facility'' means the land, structures and related equipment used
for housing, breeding, raising, feeding or milking dairy cows. The term includes within its
meaning only such agricultural land as is necessary for proper disposal of liquid and solid
wastes and for isolation of the facility to reasonably protect the confined cows from exposure
to disease.

    (w) ``Family farm limited liability agricultural company'' means a limited liability com-
pany founded for the purpose of farming and ownership of agricultural land in which:

    (1) The majority of the members are persons related to each other, all of whom have a
common ancestor within the third degree of relationship, by blood or by adoption, or the
spouses or the stepchildren of any such persons, or persons acting in a fiduciary capacity
for persons so related;

    (2) the members are natural persons or persons acting in a fiduciary capacity for the
benefit of natural persons; and

    (3) at least one of the members is a person residing on the farm or actively engaged in
the labor or management of the farming operation. If only one member is meeting the
requirement of this provision and such member dies, the requirement of this provision does
not apply for the period of time that the member's estate is being administered in any
district court in Kansas.

    (x) ``Hydroponics'' means the growing of vegetables, flowers, herbs, or plants used for
medicinal purposes, in a growing medium other than soil.

    Sec. 72. K.S.A. 1997 Supp. 47-816 is hereby amended to read as follows: 47-816. As
used in the Kansas veterinary practice act:

    (a) ``Animal'' means any mammalian animal other than human and any fowl, bird, am-
phibian, fish or reptile, wild or domestic, living or dead.

    (b) ``Board'' means the state board of veterinary examiners.

    (c) ``Clock hour of continuing education courses'' means 60 minutes of actual attendance
at a continuing education course approved by the board.

    (d) ``Direct supervision'' means the supervising licensed veterinarian is on the premises
in an animal hospital setting or in the same general area in a range setting, the supervisor
is quickly and easily available and that the animal has been examined by a veterinarian at
such time as good veterinary medical practice requires, consistent with the particular del-
egated animal health care task.

    (e) ``Licensed veterinarian'' means a veterinarian who is validly and currently licensed
to practice veterinary medicine in this state.

    (f) ``Indirect supervision'' means that the supervising licensed veterinarian is not on the
premises, but has given either written or oral instructions for treatment of the animal patient,
the animal has been examined by a veterinarian at such times as good veterinary medical
practice requires, consistent with the particular delegated animal health care task and the
animal is not anesthetized as defined in rules and regulations.

    (g) ``Practice of veterinary medicine'' means any of the following:

    (1) To diagnose, treat, correct, change, relieve, or prevent animal disease, deformity,
defect, injury or other physical or mental condition; including the prescription or adminis-
tration of any drug, medicine, biologic, apparatus, application, anesthesia or other thera-
peutic or diagnostic substance or technique on any animal including but not limited to
acupuncture, surgical or dental operations, animal psychology, animal chiropractic, theri-
ogenology, surgery, including cosmetic surgery, any manual, mechanical, biological or chem-
ical procedure for testing for pregnancy or for correcting sterility or infertility or to render
service or recommendations with regard to any of the above and all other branches of
veterinary medicine.

    (2) To represent, directly or indirectly, publicly or privately, an ability and willingness
to do any act described in paragraph (1).

    (3) To use any title, words, abbreviation or letters in a manner or under circumstances
which induce the belief that the person using them is qualified to do any act described in
paragraph (1). Such use shall be prima facie evidence of the intention to represent oneself
as engaged in the practice of veterinary medicine.

    (4) To collect blood or other samples for the purpose of diagnosing disease or conditions.
This shall not apply to unlicensed personnel employed by the United States department of
agriculture, the Kansas animal health department or the state board of agriculture who are
engaged in such personnel's official duties.

    (5) To apply principles of environmental sanitation, food inspection, environmental pol-
lution control, animal nutrition, zoonotic disease control and disaster medicine in the pro-
motion and protection of public health in the performance of any veterinary service or
procedure.

    (h) ``School of veterinary medicine'' means any veterinary college or division of a uni-
versity or college that offers the degree of doctor of veterinary medicine or its equivalent,
which conforms to the standards required for accreditation by the American veterinary
medical association and which is recognized and approved by the board.

    (i) ``Veterinarian'' means a person who has received a doctor of veterinary medicine
degree or the equivalent from a school of veterinary medicine.

    (j) ``Veterinary medical specialist'' means a person who has completed advanced training
in such person's specialty area and is a diplomat of such specialty.

    (k) ``Veterinary premises'' means any premises or facility where the practice of veteri-
nary medicine occurs, including but not limited to, a mobile clinic, outpatient clinic, satellite
clinic or veterinary hospital or clinic, but shall not include the premises of a veterinary client,
research facility or any premises wherein the practice of veterinary medicine occurs no more
than three times per year as a public service outreach of a registered veterinary premises.

    (l) ``Graduate veterinary technician'' means a person who has graduated from an Amer-
ican veterinary medical association accredited school approved by the board, or other board-
approved school for the training of veterinary technicians.

    (m) ``Registered veterinary technician'' means a person who is a graduate veterinary
technician or any other person who has passed the examinations required by the board for
registration and is registered by the board.

    (n) ``Veterinary-client-patient relationship'' means:

    (1) The veterinarian has assumed the responsibility for making medical judgments re-
garding the health of the animal or animals and the need for medical treatment, and the
client, owner or other caretaker has agreed to follow the instruction of the veterinarian;

    (2) there is sufficient knowledge of the animal or animals by the veterinarian to initiate
at least a general or preliminary diagnosis of the medical condition of the animal or animals.
This means that the veterinarian has recently seen or is personally acquainted with the
keeping and care of the animal or animals by virtue of an examination of the animal or
animals, or by medically appropriate and timely visits to the premises where the animal or
animals are kept, or both; and

    (3) the practicing veterinarian is readily available for followup in case of adverse reac-
tions or failure of the regimen of therapy.

    (o) ``ECFVG certificate'' means a certificate issued by the American veterinary medical
association education commission for foreign veterinary graduates, indicating that the holder
has demonstrated knowledge and skill equivalent to that possessed by a graduate of an
accredited or approved college of veterinary medicine.

    (p) ``Veterinary prescription drugs'' means such prescription items as defined by sub-
section (c) of 21 U.S.C. Sec. 353.

    (q) ``Veterinary corporation'' means a professional corporation of licensed veterinarians
incorporated under the professional corporation act of Kansas, cited at K.S.A. 17-2706 et
seq., and amendments thereto.

    (r) ``Veterinary partnership'' means a partnership pursuant to the Kansas uniform part-
nership act, cited at   K.S.A. 56-301 section 1 et seq., and amendments thereto, formed by
licensed veterinarians engaged in the practice of veterinary medicine.

    Sec. 73. K.S.A. 56-1a604 is hereby amended to read as follows: 56-1a604. In any case
not provided for in the Kansas revised limited partnership act, the provisions of the Kansas
uniform partnership act (  K.S.A. 56-301 section 1 et seq., and amendments thereto) shall
govern.

    Sec. 74. K.S.A. 1997 Supp. 58-3062 is hereby amended to read as follows: 58-3062. (a)
No licensee, whether acting as an agent or a principal, shall:

    (1) Intentionally use advertising that is misleading or inaccurate in any material partic-
ular or that in any way misrepresents any property, terms, values, policies or services of the
business conducted, or uses the trade name, collective membership mark, service mark or
logo of any organization owning such name, mark or logo without being authorized to do
so.

    (2) Fail to account for and remit any money which comes into the licensee's possession
and which belongs to others.

    (3) Misappropriate moneys required to be deposited in a trust account pursuant to
K.S.A. 58-3061 and amendments thereto, convert such moneys to the licensee's personal
use or commingle the money or other property of the licensee's principals with the licensee's
own money or property, except that nothing herein shall prohibit a broker from having funds
in an amount not to exceed $100 in the broker's trust account to pay expenses for the use
and maintenance of such account.

    (4) Accept, give or charge any rebate or undisclosed commission.

    (5) Pay a referral fee to a person who is properly licensed as a broker or salesperson in
another jurisdiction or who holds a corporate real estate license in another jurisdiction if
the licensee knows that the payment of the referral fee will result in the payment of a rebate
by the out-of-state licensee.

    (6) Represent or attempt to represent a broker without the broker's express knowledge
and consent.

    (7) Guarantee or authorize any person to guarantee future profits that may result from
the resale of real property.

    (8) Place a sign on any property offering it for sale or lease without the written consent
of the owner or the owner's authorized agent.

    (9) Offer real estate for sale or lease without the knowledge and consent of the owner
or the owner's authorized agent or on terms other than those authorized by the owner or
the owner's authorized agent.

    (10) Induce any party to break any contract of sale or lease.

    (11) Offer or give prizes, gifts or gratuities which are contingent upon an agency agree-
ment or the sale, purchase or lease of real estate.

    (12) Fail to see that financial obligations and commitments between the parties to an
agreement to sell, exchange or lease real estate are in writing, expressing the exact agreement
of the parties or to provide, within a reasonable time, copies thereof to all parties involved.

    (13) Procure a signature to a purchase contract which has no definite purchase price,
method of payment, description of property or method of determining the closing date.

    (14) Engage in fraud or make any substantial misrepresentation.

    (15) Represent to any lender, guaranteeing agency or any other interested party, either
verbally or through the preparation of false documents, an amount in excess of the true and
actual sale price of the real estate or terms differing from those actually agreed upon.

    (16) Fail to make known to any purchaser or lessee any interest the licensee has in the
real estate the licensee is selling or leasing or to make known to any seller or lessor any
interest the licensee will have in the real estate the licensee is purchasing or leasing.

    (17) Fail to inform both the buyer, at the time an offer is made, and the seller, at the
time an offer is presented, that certain closing costs must be paid and the approximate
amount of such costs.

    (18) Fail without just cause to surrender any document or instrument to the rightful
owner.

    (19) Accept anything other than cash as earnest money unless that fact is communicated
to the owner prior to the owner's acceptance of the offer to purchase, and such fact is shown
in the purchase agreement.

    (20) Fail to deposit any check or cash received as an earnest money deposit or as a
deposit on the purchase of a lot within five business days after the purchase agreement or
lot reservation agreement is signed by all parties, unless otherwise specifically provided by
written agreement of all parties to the purchase agreement or lot reservation agreement, in
which case the licensee shall deposit the check or cash received on the date provided by
such written agreement.

    (21) Fail in response to a request by the commission or the director to produce any
document, book or record in the licensee's possession or under the licensee's control that
concerns, directly or indirectly, any real estate transaction or the licensee's real estate busi-
ness.

    (22) Refuse to appear or testify under oath at any hearing held by the commission.

    (23) Demonstrate incompetency to act as a broker, associate broker or salesperson.

    (24) Knowingly receive or accept, directly or indirectly, any rebate, reduction or abate-
ment of any charge, or any special favor or advantage or any monetary consideration or
inducement, involving the issuance of a title insurance policy or contract concerning which
the licensee is directly or indirectly connected, from a title insurance company or title
insurance agent, or any officer, employee, attorney, agent or solicitor thereof.

    (25) Engage in the purchase of one-, two-, three- or four-family dwellings, including
condominiums and cooperatives, or the acquisition of any right, title or interest therein,
including any equity or redemption interests, if:

    (A) (i) At the time of such purchase, the dwellings are subject to a right of redemption
pursuant to foreclosure of a mortgage on such dwellings; (ii) the licensee fails to give written
notice of the purchase, within 20 days thereafter, to the mortgage holder or judgment
creditor who held such mortgage; and (iii) the licensee, unless otherwise required by law or
court order, fails to apply any rent proceeds from the dwellings to the judgment lien arising
from the foreclosure of such mortgage, as payments become due under the loan, regardless
of whether the licensee is obligated to do so;

    (B) (i) the dwellings are subject to a loan which is secured by a mortgage and which is
in default at the time of such purchase or in default within one year after such purchase;
(ii) the licensee fails to give written notice of the purchase, within 20 days thereafter, to the
mortgage holder; and (iii) the licensee, unless otherwise required by law or court order, fails
to apply any rent proceeds from the dwellings to the mortgage as the payments come due,
regardless of whether the licensee is obligated on the loan; or

    (C) the licensee fails to notify, at the time of rental, any person renting any such dwelling
of the extent and nature of the licensee's interest in such dwelling and the probable time
until possession will be taken by the mortgage holder or judgment creditor.

    (26) Commit forgery or, unless authorized to do so by a duly executed power of attorney,
sign or initial any contractual agreement on behalf of another person in a real estate trans-
action.

    (b) No salesperson or associate broker shall:

    (1) Except as provided in paragraph (A) or (B), accept a commission or other valuable
consideration from anyone other than the broker by whom the licensee is employed or with
whom the licensee is associated as an independent contractor.

    (A) A salesperson or associate broker may accept a commission or other valuable con-
sideration from a licensee who employs the salesperson or associate broker as a personal
assistant provided that: (i) the licensee and the salesperson or associate broker who is em-
ployed as a personal assistant are licensed under the supervision of the same broker, and
(ii) the supervising broker agrees in writing that the personal assistant may be paid by the
licensee.

    (B) If a salesperson or associate broker has (i) organized as a professional corporation
pursuant to K.S.A. 17-2706 et seq., and amendments thereto, (ii) incorporated under the
Kansas general corporation code contained in K.S.A. 17-6001 et seq., and amendments
thereto, (iii) organized under the Kansas limited liability company act contained in K.S.A.
17-7601 et seq., and amendments thereto, or (iv) has organized as a   (Rx)gistered limited
liability partnership as defined in   K.S.A. 56-302 section 1 and amendments thereto, the
commission or other valuable consideration may be paid by the licensee's broker to such
professional corporation, corporation, limited liability company or limited liability partner-
ship. This provision shall not alter any other provisions of this act.

    (2) Fail to place, as soon after receipt as practicable, any deposit money or other funds
entrusted to the salesperson or associate broker in the custody of the broker whom the
salesperson or associate broker represents.

    (c) No broker shall:

    (1) Pay a commission or compensation to any person for performing the services of an
associate broker or salesperson unless such person is licensed under this act and employed
by or associated with the broker.

    (2) Fail to deliver to the seller in every real estate transaction, at the time the transaction
is closed, a complete, detailed closing statement showing all of the receipts and disburse-
ments handled by the broker for the seller, or fail to deliver to the buyer a complete state-
ment showing all money received in the transaction from such buyer and how and for what
the same was disbursed, or fail to retain true copies of such statements in the broker's files,
except that the furnishing of such statements to the seller and buyer by an escrow agent
shall relieve the broker's responsibility to the seller and the buyer.

    (3) Fail to properly supervise the activities of an associated or employed salesperson or
associate broker.

    (4) Lend the broker's license to a salesperson, or permit a salesperson to operate as a
broker.

    (5) Fail to provide to the principal a written report every 30 days, along with a final
report, itemizing disbursements made by the broker from advance listing fees.

    (d) (1) If a purchase agreement provides that the earnest money be held by an escrow
agent other than a real estate broker, no listing broker shall:

    (A) Fail to deliver the purchase agreement and earnest money deposit to the escrow
agent named in the purchase agreement within five business days after the purchase agree-
ment is signed by all parties unless otherwise specifically provided by written agreement of
all parties to the purchase agreement, in which case the broker shall deliver the purchase
agreement and earnest money deposit to the escrow agent named in the purchase agreement
on the date provided by such written agreement; or

    (B) fail to obtain and keep in the transaction file a receipt from the escrow agent showing
date of delivery of the purchase agreement and earnest money deposit.

    (2) If a purchase agreement provides that the earnest money be held by an escrow agent
other than a real estate broker and the property was not listed with a broker, no broker for
the buyer shall:

    (A) Fail to deliver the purchase agreement and earnest money deposit to the escrow
agent named in the purchase agreement within five business days after the purchase agree-
ment is signed by all parties unless otherwise specifically provided by written agreement of
all parties to the purchase agreement, in which case the broker shall deliver the purchase
agreement and earnest money deposit to the escrow agent named in the purchase agreement
on the date provided by such written agreement; or

    (B) fail to obtain and keep in the transaction file a receipt from the escrow agent showing
date of delivery of the purchase agreement and earnest money deposit.

    (3) If a purchase agreement provides that the earnest money be held by an escrow agent
other than a real estate broker and neither the seller nor buyer is represented by a broker,
no transaction broker shall:

    (A) Fail to deliver the purchase agreement and earnest money deposit to the escrow
agent named in the purchase agreement within five business days after the purchase agree-
ment is signed by all parties unless otherwise specifically provided by written agreement of
all parties to the purchase agreement, in which case the broker shall deliver the purchase
agreement and earnest money deposit to the escrow agent named in the purchase agreement
on the date provided by such written agreement; or

    (B) fail to obtain and keep in the transaction file a receipt from the escrow agent showing
date of delivery of the purchase agreement and earnest money deposit.

    The commission may adopt rules and regulations to require that such purchase agreement
which provides that the earnest money be held by an escrow agent other than a real estate
broker include: (1) notification of whether or not the escrow agent named in the purchase
agreement maintains a surety bond, and (2) notification that statutes governing the dis-
bursement of earnest money held in trust accounts of real estate brokers do not apply to
earnest money deposited with the escrow agent named in the purchase agreement.

    (e) Nothing in this section shall be construed to grant any person a private right of
action for damages or to eliminate any right of action pursuant to other statutes or common
law.

    Sec. 75. K.S.A. 60-2313 is hereby amended to read as follows: 60-2313. (a) Except to
the extent otherwise provided by law, every person residing in this state shall have exempt
from seizure and sale upon any attachment, execution or other process issued from any
court in this state:

    (1) Any pension, annuity, retirement, disability, death or other benefit exempt from
process pursuant to K.S.A. 12-111a, 12-5005, 13-1246a, 13-14,102, 13-14a10, 14-10a10, 20-
2618, 72-1768, 72-5526, 74-4923, 74-4978g, 74-49,105 or 74-49,106, and amendments
thereto.

    (2) Any public assistance benefits exempt pursuant to K.S.A. 39-717 and amendments
thereto.

    (3) Any workers' compensation exempt from process pursuant to K.S.A. 44-514 and
amendments thereto.

    (4) Any unemployment benefits exempt from process pursuant to K.S.A. 44-718 and
amendments thereto.

    (5)   Any partnership property exempt from process pursuant to K.S.A. 56-325 and
amendments thereto.

    (6) Any crime victims compensation award exempt from process pursuant to K.S.A. 74-
7313 and amendments thereto.

      (7) (6) Any liquor license, club license or cereal malt beverage wholesaler's or distrib-
utor's license exempt from process pursuant to K.S.A. 41-326, 41-2629 or 41-2714, and
amendments thereto.

      (8) (7) Any interest in any policy of insurance or beneficiary certificates upon a person's
life exempt from process pursuant to K.S.A. 40-414 and amendments thereto.

      (9) (8) Any fraternal benefit society benefit, charity, relief or aid exempt from process
pursuant to K.S.A. 40-711 and amendments thereto.

      (10) (9) Any trust funds held in a cemetery merchandise trust and exempt from process
pursuant to K.S.A. 16-328 and amendments thereto.

      (11) 10) Any funds held in an account or trust established pursuant to a prearranged
funeral agreement, plan or contract and exempt from process pursuant to K.S.A. 16-310
and amendments thereto.

    (b) This section shall be part of and supplemental to article 23 of chapter 60 of the
Kansas Statutes Annotated.'';

    And by renumbering remaining sections accordingly;

    Also on page 32, in line 32, before ``K.S.A.'' by inserting ``On and after July 1, 1999,'';
also in line 32, before ``56-301'' by inserting ``17-2708, 56-1a604,''; also in line 32, by striking
``56-344'' and inserting ``56-347 and 60-2313 and K.S.A. 1997 Supp. 17-5903, 47-816 and
58-3062''; in line 34, by striking ``1998'' and inserting ``1999'';

    In the title, on page 1, in line 10, by striking ``(1994)''; also in line 10, following the
semicolon by inserting ``amending K.S.A. 17-2708, 56-1a604 and 60-2313 and K.S.A. 1997
Supp. 17-5903, 47-816 and 58-3062 and repealing the existing sections; also''; in line 11, by
striking ``56-344'' and inserting ``56-347''; and the bill be passed as amended.

 The Committee on Taxation recommends HB 2584 be passed and, because the com-
mittee is of the opinion that the bill is of a noncontroversial nature, be placed on the consent
calendar.

 Upon unanimous consent, the House referred back to the regular order of business,
Introduction of Bills and Concurrent Resolutions.

INTRODUCTION OF BILLS AND CONCURRENT RESOLUTIONS

 The following bills were introduced and read by title:

 HB 2832, An act concerning county hospitals; relating to hospital boards; amending
K.S.A. 19-4605 and repealing the existing section, by Committee on Federal and State
Affairs.

 HB 2833, An act relating to property taxation; exempting residential property therefrom;
amending K.S.A. 79-201x and repealing the existing section, by Representatives Burroughs,
Alldritt, Correll, Crow, Dean, Dillon, Feuerborn, Flaharty, Flora, Garner, Gilbert, Haley,
Helgerson, Henderson, Henry, Johnston, Kirk, Klein, Kuether, McClure, McKechnie, Nich-
ols, Pauls, E. Peterson, Phelps, Reardon, Ruff, Sawyer, Sharp, Showalter, Shriver, Spangler,
Storm, Toelkes and Wells.

 HB 2834, An act concerning crimes, punishment and criminal procedure; relating to the
offender's criminal history classification; amending K.S.A. 1997 Supp. 21-4711 and repealing
the existing section, by Representatives Edmonds.

REPORT ON ENGROSSED BILLS

 HB 2590 reported correctly engrossed February 4, 1998.

 On motion of Rep. Jennison, the House adjourned until 10:00 a.m., Friday, February 6,
1998.

CHARLENE SWANSON, Journal Clerk. 
JANET E. JONES, Cheif Clerk.