The House met pursuant to adjournment with Speaker Shallenburger in the chair.
The roll was called with 119 members present.
Rep. Lloyd was excused on verified illness.
Reps. Benlon, Cox, Kejr, O'Neal and Packer were excused on excused absence by the
Speaker.
Present later: Rep. Benlon
Prayer by Chaplain Washington:
Heavenly Father,
Your Word records in Mark 10:46-52, and in Luke 18:35- 43, how the son of
Timaeus defied those who sought to discourage him from turning to You for help
with his blindness. He openly and unashamedly turned to You. You heard his prayer
and opened his blinded eyes.
Thank You for the record of his open display of faith, Your response to it, and the
hope that brings to us today.
We are finding today, that in our need to see more clearly, there is no one else
but You to turn to. Therefore, like Bartimaeus, we come openly and unashamedly.
Hear our prayer today. Show us how to be the men, the women, the husbands, the
wives, the fathers, the mothers, the sisters, the brothers that we need to be. Help us
to see how to serve. Help us to see the lessons we're to learn from the problems we
encounter.
Humbly, in the Name of Jesus, I come. Amen and Amen.
REFERENCE OF BILLS AND CONCURRENT RESOLUTIONS
The following bills and resolutions were referred to committees as indicated:
Federal and State Affairs: HR 6014.
Rules and Journal: HR 6015.
CHANGE OF REFERENCE
Speaker Shallenburger announced the withdrawal of HB 2717 from Committee on Fed-
eral and State Affairs and rereferral to Committee on Judiciary.
MESSAGES FROM THE GOVERNOR
HB 2512, 2637, 2763 approved on March 11, 1998.
COMMUNICATIONS FROM STATE OFFICERS
From William V. Minner, Executive Director, Kansas Human Rights Commission, in
accordance with K.S.A. 44-1004(13), Fiscal Year 1997 Annual Report of the Kansas Human
Rights Commission.
From Joseph W. Mayo, Clerk of the House, State of Maine, copy of H.P. 1568, a joint
resolution memorializing the Congress of the United States to remove tobacco subsidies.
The complete reports are on file and open for inspection in the office of the Chief Clerk.
CONSENT CALENDAR
No objection was made to HB 3005; SB 472, 473 appearing on the Consent Calendar
for the first day.
FINAL ACTION ON BILLS AND CONCURRENT RESOLUTIONS
HB 2715, An act relating to leases of railroad lands; establishing rights, duties, obligations
and remedies for certain tenants of railroad land, was considered on final action.
On roll call, the vote was: Yeas 73; Nays 45; Present but not voting: 1; Absent or not
voting: 6.
Absent or not voting: Benlon, Cox, Kejr, Lloyd, O'Neal, Packer.
The bill passed, as amended.
EXPLANATION OF VOTE
Mr. Speaker: I vote NO on HB 2715. I take very seriously the property rights of In-
dividuals, Business, Industry and yes even Railroads. This appears to be a classic case of
over reaction to a problem between two entities that should be negotiating on their own, as
is the case with thousands of businesses every day across the state. We are being asked to
referee another squabble between two legitimate businesses.
This bill does not make one additional rail car available for the movement of grain from
the elevators in question.
This is a property rights bill. For that reason I am voting against HB 2715.--Bill Mason,
Peggy Palmer, Billie Vining
HB 2739, An act concerning crimes and punishment; relating to identity theft, was con-
sidered on final action.
On roll call, the vote was: Yeas 118; Nays 1; Present but not voting: 0; Absent or not
voting: 6.
Absent or not voting: Benlon, Cox, Kejr, Lloyd, O'Neal, Packer.
The bill passed, as amended.
Sub. HB 2972, An act concerning background check of certain employees; amending
K.S.A. 1997 Supp. 39-970 and 65-5117 and repealing the existing sections, was considered
on final action.
On roll call, the vote was: Yeas 117; Nays 2; Present but not voting: 0; Absent or not
voting: 6.
Absent or not voting: Benlon, Cox, Kejr, Lloyd, O'Neal, Packer.
The substitute bill passed, as amended.
SB 67, An act concerning the protection from abuse act; relating to definitions; confi-
dentiality; orders; amending K.S.A. 60-3102 and 60-3106 and K.S.A. 1997 Supp. 60-3104,
60- 3105 and 60-3107 and repealing the existing sections, was considered on final action.
On roll call, the vote was: Yeas 119; Nays 0; Present but not voting: 0; Absent or not
voting: 6.
Absent or not voting: Benlon, Cox, Kejr, Lloyd, O'Neal, Packer.
The bill passed, as amended.
H. Sub. for Sub. SB 139, An act concerning motor vehicles; amending K.S.A. 79-5105a
and 8-172 and K.S.A. 1997 Supp. 8-170 and K.S.A. 1996 Supp. 8-134a, as amended by
section 3 of chapter 119 of the 1997 Session Laws of Kansas, and 79-5101, as amended by
section 4 of chapter 119 of the 1997 Session Laws of Kansas, and repealing the existing
sections, was considered on final action.
On roll call, the vote was: Yeas 119; Nays 0; Present but not voting: 0; Absent or not
voting: 6.
Absent or not voting: Benlon, Cox, Kejr, Lloyd, O'Neal, Packer.
The substitute bill passed, as amended.
SB 404, An act concerning consumer protection; relating to the civil penalty for odometer
fraud; prescribing procedures for certain changes in a consumer's primary long distance
carrier or local exchange carrier and changes or additions to a consumer's other telecom-
munications services; providing penalties for violations; amending K.S.A. 50-651 and re-
pealing the existing section, was considered on final action.
On roll call, the vote was: Yeas 115; Nays 4; Present but not voting: 0; Absent or not
voting: 6.
Absent or not voting: Benlon, Cox, Kejr, Lloyd, O'Neal, Packer.
The bill passed, as amended.
SB 416, An act concerning economic development; expanding the availability of certain
investment incentives; amending K.S.A. 79-32,153, 79-32,154, 79-32,160a, 79-32,195 and
79-32,196 and K.S.A. 1997 Supp. 40-2813, 74-50,114 and 74-50,132 and repealing the ex-
isting sections, was considered on final action.
On roll call, the vote was: Yeas 118; Nays 1; Present but not voting: 0; Absent or not
voting: 6.
Absent or not voting: Benlon, Cox, Kejr, Lloyd, O'Neal, Packer.
The bill passed, as amended.
SB 462, An act concerning the uniform consumer credit code; relating to definitions of
certain terms; amending K.S.A. 16a-2-304 and 16a-2-309 and K.S.A. 1997 Supp. 16a-1-301
and repealing the existing sections, was considered on final action.
On roll call, the vote was: Yeas 105; Nays 14; Present but not voting: 0; Absent or not
voting: 6.
Absent or not voting: Benlon, Cox, Kejr, Lloyd, O'Neal, Packer.
The bill passed, as amended.
On motion of Rep. Jennison, the House went into Committee of the Whole, with Rep.
Reardon in the chair.
COMMITTEE OF THE WHOLE
On motion of Rep. Reardon, Committee of the Whole report, as follows, was adopted:
Recommended that committee report recommending a substitute bill to Sub. HB 2950
be adopted; also, Rep. Tanner rose on a point of order in reference to House Rule 1704(b)
which deals with the number of times any member may speak to a bill. On that point of
order, Rep. Tanner moved that the rule be suspended and that the sub-committee members,
Reps. Glasscock, Schwartz, Flora, McClure and Sloan, be allowed to respond to questions
more than twice on their area of expertise during the debate. There was no objection to the
motion.
Also, roll call was demanded on motion of Rep. E. Peterson to amend Sub. HB 2950 on
page 32, by striking all of lines 39 through 43 and inserting:
``New Sec. 30. (a) Notwithstanding any other provision of law to the contrary, the sec-
retary of health and environment shall not issue a water pollution control permit for any of
the following:
(1) Construction or operation of any new swine facility that will have an animal unit
capacity of 2,000 or more;
(2) expansion of any existing swine facility to an animal unit capacity of 2,000 or more;
or
(3) expansion of any existing swine facility if such facility has an animal unit capacity of
2,000 or more.
(b) Nothing in this section shall prohibit renewal of a water pollution control permit
that was issued by the secretary of health and environment before the effective date of this
act.
(c) The provisions of this section shall expire on and after July 1, 2000.'';
By striking all of pages 33 through 41;
On page 42, by striking all of lines 1 through 16; by renumbering sections 37 and 38
accordingly; by striking all of lines 22 through 27; by renumbering section 40 accordingly;
In the title, in line 12, before ``amending'' by inserting ``prohibiting issuance of certain
permits for swine facilities;''; in line 14, by striking all after ``sections''; by striking all of lines
15 through 19; in line 20, by striking all before the period;
On roll call, the vote was: Yeas 53; Nays 65; Present but not voting: 0; Absent or not
voting: 7.
Absent or not voting: Cox, Horst, Kejr, Lloyd, O'Neal, Packer, Spangler.
The motion of Rep. E. Peterson did not prevail.
Also, roll call was demanded on motion of Rep. Faber to amend Sub. HB 2950 on page
32, by striking all of lines 39 through 43 and inserting:
``New Sec. 30. (a) Notwithstanding any other provision of law to the contrary, if, at an
advisory election authorized by law or at an election pursuant to K.S.A. 17-5908 and amend-
ments thereto, the voters of a county have voted against allowing the establishment of swine
production facilities in the county and such voters have not subsequently voted to allow
such facilities in the county, the secretary of health and environment shall not issue a water
pollution control permit for any of the following located in such county:
(1) Construction or operation of any new swine facility that will have an animal unit
capacity of 2,000 or more;
(2) expansion of any existing swine facility to an animal unit capacity of 2,000 or more;
or
(3) expansion of any existing swine facility if such facility has an animal unit capacity of
2,000 or more.
(b) If after the effective date of this act the voters of a county vote, at an advisory election
authorized by law or an election pursuant to K.S.A. 17-5908 and amendments thereto,
against allowing the establishment of swine production facilities in the county, the prohi-
bition of subsection (a) shall apply on and after the date of such election.
(c) Nothing in this section shall prohibit:
(1) Renewal of a water pollution control permit that was issued by the secretary before
the effective date of this act;
(2) issuance of a permit for:
(A) Construction to repair a component of an existing confined feeding facility for swine,
waste retention lagoon or pond or animal waste management system;
(B) construction to replace a component of an existing confined feeding facility for
swine, waste retention lagoon or pond or animal waste management system, if the replace-
ment does not result in an increase in swine population; or
(C) construction or expansion of an existing confined feeding facility for swine for the
purpose of increasing the swine population to the projected population, or to the population
that the animal waste management system serving the facility is designed to accommodate,
as set forth in the facility's animal waste management plans approved by the department of
health and environment before February 1, 1998.'';
By striking all of pages 33 through 41;
On page 42, by striking all of lines 1 through 16; by renumbering sections 37 and 38
accordingly; by striking all of lines 22 through 27; by renumbering section 40 accordingly;
In the title, in line 12, before ``amending'' by inserting ``prohibiting issuance of certain
permits for swine facilities;''; in line 14, by striking all after ``sections''; by striking all of lines
15 through 19; in line 20, by striking all before the period;
On roll call, the vote was: Yeas 60; Nays 56; Present but not voting: 0; Absent or not
voting: 9.
Absent or not voting: Carmody, Cox, Johnston, Kejr, Lloyd, O'Neal, Packer, Powers,
Thimesch.
The motion of Rep. Faber prevailed.
Also, on motion of Rep. Edmonds to amend Sub. HB 2950, Rep. Sloan requested the
question be divided. The question was divided, and subsequently on Part A, the Chair
requested it be withdrawn while staff researched that portion of the amendment. There was
no objection and Part A was temporarily withdrawn. Roll call was demanded on the motion
to amend on Part B on page 32, in line 39, by striking ``this act'' and inserting ``sections 1
through 29'';
On page 42, after line 19, by inserting the following new section:
``Sec. 38. 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, 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, limited partnership, corporate partnership or trust and used for housing, breeding, farrowing or feeding of swine and also means a slaughterhouse which slaughters swine in an amount of 500,000 or more swine annually or a packing plant for swine in an amount of 500,000 or more swine annually, or both. The term includes within its meaning only such agricultural land and other 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. 39. K.S.A. 1997 Supp. 17-5904 is hereby amended to read as follows: 17-5904. (a)
No corporation, trust, limited liability company, limited partnership or corporate partner-
ship, other than a family farm corporation, authorized farm corporation, limited liability
agricultural company, family farm limited liability agricultural company, limited agricultural
partnership, family trust, authorized trust or testamentary trust shall, either directly or in-
directly, own, acquire or otherwise obtain or lease any agricultural land in this state. The
restrictions provided in this section do not apply to the following:
(1) A bona fide encumbrance taken for purposes of security.
(2) Agricultural land when acquired as a gift, either by grant or devise, by a bona fide
educational, religious or charitable nonprofit corporation.
(3) Agricultural land acquired by a corporation or a limited liability company in such
acreage as is necessary for the operation of a nonfarming business. Such land may not be
used for farming except under lease to one or more natural persons, a family farm corpo-
ration, authorized farm corporation, family trust, authorized trust or testamentary trust. The
corporation shall not engage, either directly or indirectly, in the farming operation and shall
not receive any financial benefit, other than rent, from the farming operation.
(4) Agricultural land acquired by a corporation or a limited liability company by process
of law in the collection of debts, or pursuant to a contract for deed executed prior to the
effective date of this act, or by any procedure for the enforcement of a lien or claim thereon,
whether created by mortgage or otherwise, if such corporation divests itself of any such
agricultural land within 10 years after such process of law, contract or procedure, except
that provisions of K.S.A. 9-1102, and amendments thereto, shall apply to any bank which
acquires agricultural land.
(5) A municipal corporation.
(6) Agricultural land which is acquired by a trust company or bank in a fiduciary capacity
or as a trustee for a nonprofit corporation.
(7) Agricultural land owned or leased or held under a lease purchase agreement as
described in K.S.A. 12-1741, and amendments thereto, by a corporation, corporate part-
nership, limited corporate partnership or trust on the effective date of this act if: (A) Any
such entity owned or leased such agricultural land prior to July 1, 1965, provided such entity
shall not own or lease any greater acreage of agricultural land than it owned or leased prior
to the effective date of this act unless it is in compliance with the provisions of this act; (B)
any such entity was in compliance with the provisions of K.S.A. 17-5901 prior to its repeal
by this act, provided such entity shall not own or lease any greater acreage of agricultural
land than it owned or leased prior to the effective date of this act unless it is in compliance
with the provisions of this act, and absence of evidence in the records of the county where
such land is located of a judicial determination that such entity violated the provisions of
K.S.A. 17-5901 prior to its repeal shall constitute proof that the provisions of this act do not
apply to such agricultural land, and that such entity was in compliance with the provisions
of K.S.A. 17-5901 prior to its repeal; or (C) any such entity was not in compliance with the
provisions of K.S.A. 17-5901 prior to its repeal by this act, but is in compliance with the
provisions of this act by July 1, 1991.
(8) Agricultural land held or leased by a corporation or a limited liability company for
use as a feedlot, a poultry confinement facility or rabbit confinement facility.
(9) Agricultural land held or leased by a corporation for the purpose of the production
of timber, forest products, nursery products or sod.
(10) Agricultural land used for bona fide educational research or scientific or experi-
mental farming.
(11) Agricultural land used for the commercial production and conditioning of seed for
sale or resale as seed or for the growing of alfalfa by an alfalfa processing entity if such land
is located within 30 miles of such entity's plant site.
(12) Agricultural land owned or leased by a corporate partnership or limited corporate
partnership in which the partners associated therein are either natural persons, family farm
corporations, authorized farm corporations, limited liability agricultural companies, family
trusts, authorized trusts or testamentary trusts.
(13) Any corporation, either domestic or foreign, or any limited liability company, or-
ganized for coal mining purposes which engages in farming on any tract of land owned by
it which has been strip mined for coal.
(14) Agricultural land owned or leased by a limited partnership prior to the effective
date of this act.
(15) Except as provided by K.S.A. 17-5908 and amendments thereto, agricultural land
held or leased by a corporation or a limited liability company for use as a swine production
facility in any county which has voted favorably pursuant to K.S.A. 17-5908 and amendments
thereto, either by county resolution or by the electorate.
(16) Agricultural land held or leased by a corporation or a limited liability company for
use as a dairy production facility in any county which has voted favorably pursuant to K.S.A.
17-5907 and amendments thereto, either by county resolution or by the electorate.
(17) Agricultural land held or leased by a corporation or a limited liability company used
in a hydroponics setting.
(18) Agricultural land held or leased by any slaughterhouse or packing plant for swine as provided in subsection (b) prior to January 1, 1998.
(b) No slaughterhouse which slaughters swine in an amount of 500,000 or more swine annually or a packing plant for swine in an amount of 500,000 or more swine annually, or both, shall own, acquire or otherwise obtain or lease any agricultural or other land in any county in this state until such county has voted favorably pursuant to K.S.A. 17-5908 and amendments thereto, either by county resolution or by the electorate.
(c) Production contracts entered into by a corporation, trust, limited liability company,
limited partnership or corporate partnership and a person engaged in farming for the pro-
duction of agricultural products shall not be construed to mean the ownership, acquisition,
obtainment or lease, either directly or indirectly, of any agricultural land in this state.
(c) (d) Any corporation, trust, limited liability company, limited partnership or corporate
partnership, other than a family farm corporation, authorized farm corporation, limited
liability agricultural company, family farm limited liability agricultural company, limited
agricultural partnership, family trust, authorized trust or testamentary trust, violating the
provisions of this section shall be subject to a civil penalty of not more than $50,000 and
shall divest itself of any land acquired in violation of this section within one year after
judgment is entered in the action. The district courts of this state may prevent and restrain
violations of this section through the issuance of an injunction. The attorney general or
district or county attorney shall institute suits on behalf of the state to enforce the provisions
of this section.
(d) (e) Civil penalties sued for and recovered by the attorney general shall be paid into
the state general fund. Civil penalties sued for and recovered by the county attorney or
district attorney shall be paid into the general fund of the county where the proceedings
were instigated.
And by renumbering sections accordingly;
Also on page 42, in line 21, after ``Supp.'' by inserting ``17-5903, 17-5904,'';
On page 1, in the title, in line 12, before ``amending'' by inserting ``establishment of swine
production facilities and slaughterhouses, procedure;''; in line 13, after ``Supp.'' by inserting
``17-5903, 17-5904,'';
On roll call, the vote was: Yeas 50; Nays 64; Present but not voting: 0; Absent or not
voting: 11.
Absent or not voting: Adkins, Carmody, Cox, Kejr, Krehbiel, Lloyd, Mayans, McKechnie,
O'Neal, Packer, Pauls.
Part B of the motion of Rep. Edmonds did not prevail.
Also, roll call was demanded on Part A of the motion of Rep. Edmonds to amend Sub. HB 2950 on page 32, in line 39, by striking ``this act'' and inserting ``sections 1 through
29'';
On page 42, after line 19, by inserting the following new section:
``Sec. 38. K.S.A. 17-5908 is hereby amended to read as follows: 17-5908. (a) (1) The
board of county commissioners, by resolution, may permit a swine production facility, as
defined in K.S.A. 17-5903, and amendments thereto, to be established within the county upon approval of the voters as provided in this section. Such resolution shall be published
once each week for two consecutive weeks in the official county newspaper. The resolution
shall take effect 60 days after final publication unless a valid petition in opposition to the same is filed after approval of the voters as provided in this section.
(2) If within 60 days of the final publication of the resolution, a valid protest petition to submit the resolution to the qualified voters of the county is signed by qualified electors of the county equal in number to not less than 5% of the electors of the county who voted for the office of secretary of state at the last preceding general election at which such office was elected and is filed with the county election officer, After such resolution has been adopted by the board as provided in subsection (a) (1), the county election officer shall
submit the question of whether a swine production facility shall be allowed to be established
in such county at the next state or county-wide regular or special election.
(b) (1) The board of county commissioners, upon a petition filed in accordance with paragraph (b)(2), shall submit to the qualified electors of the county a proposition to permit a swine production facility, as defined in K.S.A. 17-5903, and amendments thereto, to be established within the county.
(2) A petition to submit a proposition to the qualified voters of a county pursuant to this section shall be filed with the county election officer. The petition shall be signed by qualified electors of the county equal in number to not less than 5% of the electors of the county who voted for the office of secretary of state at the last preceding general election at which such office was elected. The following shall appear on the petition:
``We request an election to determine whether a corporate swine production facility shall be allowed to be established in ____________ county, pursuant to K.S.A. 17-5904.''
(3) Upon the submission of a valid petition calling for an election pursuant to this subsection, the county election officer shall submit the question of whether a swine pro- duction facility shall be allowed to be established in such county at the next state or county- wide regular or special election which occurs more than 60 days after the petition is filed with the county election officer.
(c) If a majority of the votes cast and counted are in opposition to allowing swine pro-
duction facilities to be established in such county, the county election officer shall transmit
a copy of the result to the secretary of state who shall publish in the Kansas register the
result of such election and that swine production facilities are not allowed to be established
in such county.
(d) (c) If a majority of the votes cast and counted is in favor of the proposition, the
county election officer shall transmit a copy of the result to the secretary of state who shall
publish in the Kansas register the result of such election and that swine production facilities
are allowed to be established in such county.
(e) (d) The election provided for by this section shall be conducted, and the votes
counted and canvassed, in the manner provided by law for question submitted elections of
the county.
(e) When the proposition of whether a swine production facility shall be allowed to be established in a county has been submitted to the electors as provided in this section, such proposition may be resubmitted to the electors of such county not more often than once every two years thereafter, whenever a valid petition has been submitted to the board of county commissioners signed by qualified electors of the county equal in number to not less than 5% of the electors of the county who voted for the office of secretary of state at the last preceding general election at which such office was elected. The county election officer shall submit the question at the next state or county-wide regular or special election which occurs more than 60 days after the petition is filed with the county election officer. The results of such election shall be binding and shall supersede any previous election. The provisions of this subsection are applicable regardless of whether the previous election opposed or ap- proved establishment of swine production facility in such county.'';
And by renumbering sections accordingly;
Also on page 42, in line 20, after ``2-3307'' by inserting ``, 17-5908'';
On page 1, in the title, in line 12, before ``amending'' by inserting ``establishment of swine
production facilities and slaughterhouses, procedure;''; in line 13, after ``2-3307'' by inserting
``, 17-5908'';
On roll call, the vote was: Yeas 91; Nays 26; Present but not voting: 0; Absent or not
voting: 8.
Absent or not voting: Adkins, Carmody, Cox, Kejr, Lloyd, McKechnie, O'Neal, Packer.
Part A of the motion of Rep. Edmonds prevailed.
Also, on motion of Rep. Larkin to amend Sub. HB 2950, Rep. Sloan requested the
question be divided. The question was divided and roll call was demanded on Part A of the
motion to amend on page 32, in line 39, by striking ``this act'' and inserting ``sections 1
through 29'';
On page 42, after line 19, by inserting the following:
``Sec. 1. 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 in Kansas and 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, and
amendments thereto, which has within the association one or more corporations or one or
more limited liability companies.
On roll call, the vote was: Yeas 53; Nays 61; Present but not voting: 0; Absent or not
voting: 11.
Absent or not voting: Adkins, Carmody, Cox, Geringer, Kejr, Landwehr, Lloyd, Mayans,
McKechnie, O'Neal, Packer.
Part A of the motion of Rep. Larkin did not prevail.
Also, roll call was demanded on Part B of the motion of Rep. Larkin to amend Sub. HB 2950
(f) ``Feedlot'' means a lot, yard, corral, or other area in which livestock, except swine,
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 with ownership of 10% or more of the corporate stock is a person residing on the farm or in Kansas and 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 management 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 with ownership of 10% or more of the corporate stock must be a person residing on the farm or in Kansas and actively engaged in labor or management of the farming operation. If only one stock-
holder is meeting the requirement of this provision and such stockholder dies, the require-
ment 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, limited partnership, corporate part- nership or trust and used for housing, breeding, farrowing or, feeding or finishing 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. The term also includes a lot, yard, corral or other area in which swine fed for slaughter are confined.
(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 in Kansas and 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 in Kansas and 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 adminis-
tered 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. 39. K.S.A. 1997 Supp. 17-5904 is hereby amended to read as follows: 17-5904. (a)
No corporation, trust, limited liability company, limited partnership or corporate partner-
ship, other than a family farm corporation, authorized farm corporation, limited liability
agricultural company, family farm limited liability agricultural company, limited agricultural
partnership, family trust, authorized trust or testamentary trust shall, either directly or in-
directly, own, acquire or otherwise obtain or lease any agricultural land in this state. The
restrictions provided in this section do not apply to the following:
(1) A bona fide encumbrance taken for purposes of security.
(2) Agricultural land when acquired as a gift, either by grant or devise, by a bona fide
educational, religious or charitable nonprofit corporation.
(3) Agricultural land acquired by a corporation or a limited liability company in such
acreage as is necessary for the operation of a nonfarming business. Such land may not be
used for farming except under lease to one or more natural persons, a family farm corpo-
ration, authorized farm corporation, family trust, authorized trust or testamentary trust. The
corporation shall not engage, either directly or indirectly, in the farming operation and shall
not receive any financial benefit, other than rent, from the farming operation.
(4) Agricultural land acquired by a corporation or a limited liability company by process
of law in the collection of debts, or pursuant to a contract for deed executed prior to the
effective date of this act, or by any procedure for the enforcement of a lien or claim thereon,
whether created by mortgage or otherwise, if such corporation divests itself of any such
agricultural land within 10 years after such process of law, contract or procedure, except
that provisions of K.S.A. 9-1102, and amendments thereto, shall apply to any bank which
acquires agricultural land.
(5) A municipal corporation.
(6) Agricultural land which is acquired by a trust company or bank in a fiduciary capacity
or as a trustee for a nonprofit corporation.
(7) Agricultural land owned or leased or held under a lease purchase agreement as
described in K.S.A. 12-1741, and amendments thereto, by a corporation, corporate part-
nership, limited corporate partnership or trust on the effective date of this act if: (A) Any
such entity owned or leased such agricultural land prior to July 1, 1965, provided such entity
shall not own or lease any greater acreage of agricultural land than it owned or leased prior
to the effective date of this act unless it is in compliance with the provisions of this act; (B)
any such entity was in compliance with the provisions of K.S.A. 17-5901 prior to its repeal
by this act, provided such entity shall not own or lease any greater acreage of agricultural
land than it owned or leased prior to the effective date of this act unless it is in compliance
with the provisions of this act, and absence of evidence in the records of the county where
such land is located of a judicial determination that such entity violated the provisions of
K.S.A. 17-5901 prior to its repeal shall constitute proof that the provisions of this act do not
apply to such agricultural land, and that such entity was in compliance with the provisions
of K.S.A. 17-5901 prior to its repeal; or (C) any such entity was not in compliance with the
provisions of K.S.A. 17-5901 prior to its repeal by this act, but is in compliance with the
provisions of this act by July 1, 1991.
(8) Agricultural land held or leased by a corporation or a limited liability company for
use as a feedlot, a poultry confinement facility or rabbit confinement facility.
(9) Agricultural land held or leased by a corporation for the purpose of the production
of timber, forest products, nursery products or sod.
(10) Agricultural land used for bona fide educational research or scientific or experi-
mental farming.
(11) Agricultural land used for the commercial production and conditioning of seed for
sale or resale as seed or for the growing of alfalfa by an alfalfa processing entity if such land
is located within 30 miles of such entity's plant site.
(12) Agricultural land owned or leased by a corporate partnership or limited corporate
partnership in which the partners associated therein are either natural persons, family farm
corporations, authorized farm corporations, limited liability agricultural companies, family
trusts, authorized trusts or testamentary trusts.
(13) Any corporation, either domestic or foreign, or any limited liability company, or-
ganized for coal mining purposes which engages in farming on any tract of land owned by
it which has been strip mined for coal.
(14) Agricultural land owned or leased by a limited partnership prior to the effective
date of this act.
(15) Except as provided by K.S.A. 17-5908 and amendments thereto, agricultural land
held or leased by a corporation or a limited liability company for use as a swine production
facility in any county which has voted favorably pursuant to K.S.A. 17-5908 and amendments
thereto, either by county resolution or by the electorate.
(16) Agricultural land held or leased by a corporation or a limited liability company for
use as a dairy production facility in any county which has voted favorably pursuant to K.S.A.
17-5907 and amendments thereto, either by county resolution or by the electorate.
(17) Agricultural land held or leased by a corporation or a limited liability company used
in a hydroponics setting.
(18) Agricultural land held or leased by a corporation or a limited liability company prior to the effective date of this act for use as a swine feedlot.
(b) Production contracts entered into by a corporation, trust, limited liability company,
limited partnership or corporate partnership and a person engaged in farming for the pro-
duction of agricultural products shall not be construed to mean the ownership, acquisition,
obtainment or lease, either directly or indirectly, of any agricultural land in this state.
(c) Any corporation, trust, limited liability company, limited partnership or corporate
partnership, other than a family farm corporation, authorized farm corporation, limited
liability agricultural company, family farm limited liability agricultural company, limited
agricultural partnership, family trust, authorized trust or testamentary trust, violating the
provisions of this section shall be subject to a civil penalty of not more than $50,000 and
shall divest itself of any land acquired in violation of this section within one year after
judgment is entered in the action. The district courts of this state may prevent and restrain
violations of this section through the issuance of an injunction. The attorney general or
district or county attorney shall institute suits on behalf of the state to enforce the provisions
of this section.
(d) Civil penalties sued for and recovered by the attorney general shall be paid into the
state general fund. Civil penalties sued for and recovered by the county attorney or district
attorney shall be paid into the general fund of the county where the proceedings were
instigated.'';
And by renumbering sections accordingly;
Also on page 42, in line 21, after ``Supp.'' by inserting ``17-5903, 17-5904,'';
On page 1, in the title, in line 12, before ``amending'' by inserting ``concerning agricultural
corporations; relating to swine production facilities;''; in line 13, after ``Supp.'' by inserting
``17-5903, 17-5904,'';
On roll call, the vote was: Yeas 56; Nays 61; Present but not voting: 0; Absent or not
voting: 8.
Absent or not voting: Adkins, Carmody, Cox, Kejr, Lloyd, McKechnie, O'Neal, Packer.
Part B of the motion of Rep. Larkin did not prevail.
Also, having voted on the prevailing side, Rep. Swenson moved that the House reconsider
its action in the adoption of the Faber amendment. Rep. Swenson subsequently requested
his motion be withdrawn. There was objection. The question then reverted back to the
motion of Rep. Faber to amend Sub. HB 2950. Rep. Faber requested his amendment be
withdrawn. There was objection. On division vote, the amendment was withdrawn.
Also, roll call was demanded on further motion of Rep. Faber to amend Sub. HB 2950
on page 32, by striking all of lines 39 through 43 and inserting:
``New Sec. 30. (a) Notwithstanding any other provision of law to the contrary, if, at an
advisory election authorized by law or at an election pursuant to K.S.A. 17-5908 and amend-
ments thereto, the voters of a county have voted against allowing the establishment of swine
production facilities in the county and such voters have not subsequently voted to allow
such facilities in the county, the secretary of health and environment shall not issue a water
pollution control permit for any of the following located in such county:
(1) Construction or operation of any new swine facility that will have an animal unit
capacity of 3,000 or more;
(2) expansion of any existing swine facility to an animal unit capacity of 3,000 or more;
or
(3) expansion of any existing swine facility if such facility has an animal unit capacity of
2,000 or more.
(b) If after the effective date of this act the voters of a county vote, at an advisory election
authorized by law or an election pursuant to K.S.A. 17-5908 and amendments thereto,
against allowing the establishment of swine production facilities in the county, the prohi-
bition of subsection (a) shall apply on and after the date of such election.
(c) Nothing in this section shall prohibit:
(1) Renewal of a water pollution control permit that was issued by the secretary before
the effective date of this act;
(2) issuance of a permit for:
(A) Construction to repair a component of an existing confined feeding facility for swine,
waste retention lagoon or pond or animal waste management system;
(B) construction to replace a component of an existing confined feeding facility for
swine, waste retention lagoon or pond or animal waste management system, if the replace-
ment does not result in an increase in swine population; or
(C) construction or expansion of an existing confined feeding facility for swine for the
purpose of increasing the swine population to the projected population, or to the population
that the animal waste management system serving the facility is designed to accommodate,
as set forth in the facility's animal waste management plans approved by the department of
health and environment before February 1, 1998.'';
By striking all of pages 33 through 41;
On page 42, by striking all of lines 1 through 16; by renumbering sections 37 and 38
accordingly; by striking all of lines 22 through 27; by renumbering section 40 accordingly;
In the title, in line 12, before ``amending'' by inserting ``prohibiting issuance of certain
permits for swine facilities;''; in line 14, by striking all after ``sections''; by striking all of lines
15 through 19; in line 20, by striking all before the period;
On roll call, the vote was: Yeas 50; Nays 69; Present but not voting: 0; Absent or not
voting: 6.
Absent or not voting: Carmody, Cox, Kejr, Lloyd, O'Neal, Packer.
The motion of Rep. Faber did not prevail.
Also, roll call was demanded on motion of Rep. Johnston to amend Sub. HB 2950 on
page 32, by striking all of lines 39 through 43 and inserting:
``New Sec. 30. (a) Notwithstanding any other provision of law to the contrary, the sec-
retary of health and environment shall not issue a water pollution control permit for any of
the following:
(1) Construction or operation of any new swine facility that will have an animal unit
capacity of 3,725 or more;
(2) expansion of any existing swine facility to an animal unit capacity of 3,725 or more;
or
(3) expansion of any existing swine facility if such facility has an animal unit capacity of
3,725 or more.
(b) Nothing in this section shall prohibit renewal of a water pollution control permit
that was issued by the secretary of health and environment before the effective date of this
act.
(c) The provisions of this section shall expire on and after July 1, 2000.'';
By striking all of pages 33 through 41;
On page 42, by striking all of lines 1 through 16; by renumbering sections 37 and 38
accordingly; by striking all of lines 22 through 27; by renumbering section 40 accordingly;
In the title, in line 12, before ``amending'' by inserting ``prohibiting issuance of certain
permits for swine facilities;''; in line 14, by striking all after ``sections''; by striking all of lines
15 through 19; in line 20, by striking all before the period;
On roll call, the vote was: Yeas 46; Nays 72; Present but not voting: 0; Absent or not
voting: 7.
Absent or not voting: Carmody, Cox, Kejr, Lloyd, O'Neal, Packer, Palmer.
The motion of Rep. Johnston did not prevail.
Also, on further motion of Rep. Johnston to amend Sub. HB 2950, the motion did not
prevail.
Also, on motion of Rep. Helgerson Sub. HB 2950 be amended on page 42, preceding
line 28, by inserting the following section to read as follows:
``New Sec. 40. In accordance with the provisions of appropriation acts, the cost of the
operating expenses required by the new, expanded or additional duties and functions pre-
scribed by this act for the secretary of health and environment and department of health
and environment for the fiscal year ending June 30, 1998, and for each fiscal year thereafter,
specifically including the cost of operating expenses for additional state officers and em-
ployees, shall be funded from the state economic development initiatives fund.'';
And by renumbering sections accordingly;
Also, on motion of Rep. Larkin Sub. HB 2950 be amended on page 32, in line 39, by
striking ``this act'' and inserting ``sections 1 through 29'';
On page 42, after line 19, by inserting the following:
``Sec. 38. K.S.A. 74-5065 is hereby amended to read as follows: 74-5065. As used in
this act:
(a) ``Kansas industrial training program'' or ``KIT program'' means a program under
which the secretary provides for training, customized to meet the specifications of a new or
expanding industry, of new employees or prospective employees, or both, of the industry.
(b) ``Kansas industrial retraining program'' or ``KIR program'' means a program under
which the secretary provides for retraining, customized to meet the specifications of a re-
structuring industry, of employees of the industry.
(c) ``New or expanding industry'' means an industry which is locating or is newly located
in Kansas or an existing industry which is located in Kansas and is expanding its work force.
(d) ``Training'' means training of employees or preemployment training of prospective
employees for jobs newly created by a new or expanding industry.
(e) ``Restructuring industry'' means an existing industry which is located in Kansas and
is restructuring its operations through incorporation of existing technology, development
and incorporation of new technology, diversification of production or development and
implementation of new production.
(f) ``Retraining'' means retraining of employees of a restructuring industry who are likely
to be displaced because of obsolete or inadequate job skills and knowledge.
(g) ``Job training agency'' means any public or private educational or job training insti-
tution and any other public or private entity which is qualified to provide the training or
retraining required under the KIT and KIR programs.
(h) ``Secretary'' means the secretary of commerce.
(i) ``Agricultural land,'' ``corporation,'' ``corporate partnership,'' ``limited liability com- pany,'' ``limited partnership,'' ``swine production facility'' and ``trust'' have the meanings ascribed pursuant to K.S.A. 17-5903, and amendments thereto.
Sec. 39. K.S.A. 1997 Supp. 74-5066 is hereby amended to read as follows: 74-5066. (a)
The secretary shall administer the KIT program and the KIR program and shall:
(1) Consider proposals from industries and job training agencies for training or retrain-
ing services under the programs;
(2) publicize the programs and the procedures for making and submitting proposals for
participation therein;
(3) establish standards and criteria for consideration of proposals and for assigning pri-
orities among industries making proposals;
(4) ensure the provision of adequate fiscal and accounting controls under the programs;
(5) allocate and distribute funds made available for administration of the programs;
(6) evaluate the programs each year and make a report on the performance and cost
effectiveness thereof as a part of the annual report required by K.S.A. 1997 Supp. 74-5049,
and amendments thereto; and
(7) adopt rules and regulations necessary for administration of the programs.
(b) Contractual agreements may be entered into by the secretary with any industry or
job training agency for participation in the programs and such agreements may be in the
form of fixed-fee performance contracts. Training services under the KIT program may be
provided at no cost to the industry or on a shared-cost basis with the industry as determined
through negotiation between the secretary and the industry. Retraining services under the
KIR program shall be provided on a shared cost basis. All expenditures for the payment of
costs under the KIT and KIR programs shall be made in accordance with appropriation acts
upon warrants of the director of accounts and reports issued pursuant to vouchers approved
by the secretary or by a person or persons designated by the secretary. Notwithstanding any
provision of law to the contrary, contractual agreements entered into under the KIT program
or the KIR program shall not be subject to competitive bidding procedures of K.S.A. 75-
3739 and amendments thereto.
(c) Within the limitation of funds available for the KIT and KIR programs and to the
extent practicable, the secretary shall make participation in the programs available to all
industries which submit proposals to participate therein, if consistent with program goals
and objectives and the allocation of resources for the programs. Goals and objectives for
the KIT and KIR programs shall include appropriate priorities for basic industries.
(d) The secretary shall not use any funds in the KIT program or KIR program for the training or retraining of employees who are employed by a swine production facility on agricultural land which is owned, acquired, obtained or leased by a corporation, limited liability company, limited partnership, corporate partnership or trust.
Sec. 40. K.S.A. 1997 Supp. 74-8902 is hereby amended to read as follows: 74-8902.
The following words or terms used in this act shall have the following meanings unless a
different meaning clearly appears from the context:
(a) ``Act'' means the Kansas development finance authority act.
(b) ``Authority'' means the Kansas development finance authority created by K.S.A.
74-8903, and amendments thereto.
(c) ``Agricultural business enterprises'' means facilities supporting or utilized in the op-
eration of farms, ranches and other agricultural, aquacultural or silvicultural commodity
producers and services provided in conjunction with the foregoing. ``Agricultural business enterprise'' shall not include a swine production facility on agricultural land which is owned, acquired, obtained or leased by a corporation, limited liability company, limited partnership, corporate partnership or trust.
(d) ``Board of directors'' means the board of directors of the authority created by K.S.A.
74-8903, and amendments thereto.
(e) ``Bonds'' means any bonds, notes, debentures, interim certificates, grant and revenue
anticipation notes, interest in a lease, lease certificate of participation or other evidences of
indebtedness, whether or not the interest on which is subject to federal income taxation,
issued by the authority pursuant to this act.
(f) ``Capital improvements'' means any physical public betterment or improvement or
any preliminary plans, studies or surveys relative thereto; land or rights in land, including,
without limitations, leases, air rights, easements, rights-of-way or licenses; and any furnish-
ings, machinery, vehicles, apparatus or equipment for any public betterment or improve-
ment.
(g) ``Construct'' means to acquire or build, in whole or in part, in such manner and by
such method as the authority shall determine to be in the public interest and necessary to
accomplish the purposes of and authority set forth in this act.
(h) ``Loans'' means loans made for the purposes of financing any of the activities au-
thorized within this act, including loans made to financial institutions for funding or as
security for loans made for accomplishing any of the purposes of this act and reserves and
expenses appropriate or incidental thereto.
(i) ``Educational facilities'' means real, personal and mixed property of any and every
kind intended by an educational institution in furtherance of its educational program.
(j) ``Facilities'' means any real property, personal property or mixed property of any and
every kind.
(k) ``Health care facilities'' means facilities for furnishing physical or mental health care.
(l) ``Housing development'' means any work or undertaking, whether new construction
or rehabilitation, which is designed and financed pursuant to the provisions of this act for
the primary purpose of providing dwelling accommodations for elderly persons and families
of low income in need of housing.
(m) ``Industrial enterprise'' means facilities for manufacturing, producing, processing,
assembling, repairing, extracting, warehousing, distributing, communications, computer
services, transportation, corporate and management offices and services provided in con-
nection with any of the foregoing, in isolation or in any combination, that involve the creation
of new or additional employment or the retention of existing employment.
(n) ``Political subdivision'' means political or taxing subdivisions of the state, including
municipal and quasi-municipal corporations, boards, commissions, authorities, councils,
committees, subcommittees and other subordinate groups or administrative units thereof,
receiving or expending and supported, in whole or in part, by public funds.
(o) ``Pooled bonds'' means bonds of the authority, the interest on which is subject to
federal income taxation, which are issued for the purpose of acquiring bonds issued by two
or more political subdivisions.
(p) ``State'' means the state of Kansas.
(q) ``State agency'' means any office, department, board, commission, bureau, division,
public corporation, agency or instrumentality of this state.
(r) ``Agricultural land,'' ``corporation,'' ``corporate partnership,'' ``limited liability com- pany,'' ``limited partnership,'' ``swine production facility'' and ``trust'' have the meanings ascribed pursuant to K.S.A. 17-5903, and amendments thereto.
Sec. 41. K.S.A. 1997 Supp. 74-8905 is hereby amended to read as follows: 74-8905. (a)
The authority is hereby authorized and empowered to issue bonds, either for a specific
activity or on a pooled basis for a series of related or unrelated activities or projects duly
authorized by a political subdivision or group of political subdivisions of the state in such
amounts as shall be determined by the authority for the purpose of financing capital im-
provement facilities, educational facilities, health care facilities and housing developments.
Nothing in this act shall be construed to authorize the authority to issue bonds or use the
proceeds thereof to (1) purchase, condemn, or otherwise acquire a utility plant or distri-
bution system owned or operated by a regulated public utility or, (2) finance any capital
improvement facilities, educational facilities, or health care facilities which are authorized
under the laws of the state to be financed by the issuance of general obligation or utility
revenue bonds of a political subdivision, except that the acquisition by the authority of
general obligation or utility revenue bonds issued by political subdivisions with the proceeds
of pooled bonds shall not violate the provisions of the foregoing; or (3) purchase, acquire, construct, reconstruct, improve, equip, furnish, repair, enlarge or remodel property for any swine production facility on agricultural land which is owned, acquired, obtained or leased by a corporation, limited liability company, limited partnership, corporate partnership or trust. Nothing in this subsection (a) shall prohibit the issuance of bonds by the authority
when any statute specifically authorizes the issuance of bonds by the authority or approves
any activity or project of a state agency for purposes of authorizing any such issuance of
bonds in accordance with this section and provides an exemption from the provisions of this
subsection (a).
(b) The authority is hereby authorized and empowered to issue bonds for activities and
projects of state agencies as requested by the secretary of administration. No bonds may be
issued pursuant to this act for any activity or project of a state agency unless the activity or
project either has been approved by an appropriation or other act of the legislature or has
been approved by the state finance council acting on this matter which is hereby charac-
terized as a matter of legislative delegation and subject to the guidelines prescribed in
subsection (c) of K.S.A. 75-3711c and amendments thereto. When requested to do so by
the secretary of administration, the authority is further authorized and empowered to issue
bonds for the purpose of refunding, whether at maturity or in advance of maturity, any
outstanding bonded indebtedness of any state agency. The revenues of any state agency
which are pledged as security for any bonds of such state agency which are refunded by
refunding bonds of the authority may be pledged to the authority as security for the re-
funding bonds.
(c) The authority is hereby authorized and empowered to issue bonds for the purpose
of financing industrial enterprises, agricultural business enterprises, educational facilities,
health care facilities and housing developments, or any combination of such facilities, or any
interest in facilities, including without limitation leasehold interests in and mortgages on
such facilities. No less than 30 days prior to the issuance of any bonds authorized under this
act with respect to any project or activity which is to be undertaken for the direct benefit
of any person or entity which is not a state agency or a political subdivision, written notice
of the intention of the authority to provide financing and issue bonds therefor shall be given
by the president of the authority to the governing body of the city in which the project or
activity is to be located, or, if the project or activity is not proposed to be located within a
city, such notice shall be given to the governing body of the county. No bonds for the
financing of the project or activity shall be issued by the authority for a one-year period if,
within 15 days after the giving of such notice, the governing body of the political subdivision
in which the project or activity is proposed to be located shall have duly enacted an ordinance
or resolution stating express disapproval of the project or activity and shall have notified the
president of the authority of such disapproval.
(d) The authority is hereby authorized and empowered to issue bonds for the purpose
of establishing and funding one or more series of venture capital funds in such principal
amounts, at such interest rates, in such maturities, with such security, and upon such other
terms and in such manner as is approved by resolution of the authority. The proceeds of
such bonds not placed in a venture capital fund or used to pay or reimburse organizational,
offering and administrative expenses and fees necessary to the issuance and sale of such
bonds shall be invested and reinvested in such securities and other instruments as shall be
provided in the resolution under which such bonds are issued. Moneys in a venture capital
fund shall be used to make venture capital investments in new, expanding or developing
businesses, including, but not limited to, equity and debt securities, warrants, options and
other rights to acquire such securities, subject to the provisions of the resolution of the
authority. The authority shall establish an investment policy with respect to the investment
of the funds in a venture capital fund not inconsistent with the purposes of this act. The
authority shall enter into an agreement with a management company experienced in venture
capital investments to manage and administer each venture capital fund upon terms not
inconsistent with the purposes of this act and such investment policy. The authority may
establish an advisory board to provide advice and consulting assistance to the authority and
the management company with respect to the management and administration of each
venture capital fund and the establishment of its investment policy. All fees and expenses
incurred in the management and administration of a venture capital fund not paid or re-
imbursed out of the proceeds of the bonds issued by the authority shall be paid or reim-
bursed out of such venture capital fund.
(e) The authority is hereby authorized and empowered to use the proceeds of any bond
issues herein authorized, together with any other available funds, for venture capital in-
vestments or for purchasing, leasing, constructing, restoring, renovating, altering or repairing
facilities as herein authorized, for making loans, purchasing mortgages or security interests
in loan participations and paying all incidental expenses therewith, paying expenses of au-
thorizing and issuing the bonds, paying interest on the bonds until revenues thereof are
available in sufficient amounts, purchasing bond insurance or other credit enhancements
on the bonds, and funding such reserves as the authority deems necessary and desirable.
All moneys received by the authority, other than moneys received by virtue of an appro-
priation, are hereby specifically declared to be cash funds, restricted in their use and to be
used solely as provided herein. No moneys of the authority other than moneys received by
appropriation shall be deposited with the state treasurer.
(f) Any time the authority is required to publish a notification pursuant to the tax equity
and fiscal responsibility act of 1982, the authority shall further publish such notification in
the Kansas register.
(g) Any time the authority issues bonds pursuant to this section, the authority shall
publish notification of such issuance of bonds 14 days prior to any bond hearing in the
official county newspaper where such bonds will be used and in the Kansas register.'';
And by renumbering sections accordingly;
Also on page 42, in line 20, after ``2-3307'' by inserting ``, 74-5065''; in line 21, by striking
``and'' and inserting a comma; also in line 21, before ``are'' by inserting ``, 74-5066, 74-8902
and 74-8905'';
On page 1, in the title, in line 12, before ``amending'' by inserting ``relating to KIT and
KIR programs; relating to Kansas development finance authority bonds;''; in line 13, after
``2-3307'' by inserting ``, 74-5065''; in line 14, by striking ``and'' where it appears for the first
time and inserting a comma; also in line 14, after ``65-171d'' by inserting ``, 74-5066, 74-
8902 and 74-8905'';
Also, roll call was demanded on further motion of Rep. Larkin to amend Sub. HB 2950
on page 42, after line 19, by inserting:
``Sec. 38. 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, 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.
(y) ``Processor'' means a person, firm, corporation, limited liability company, corporate partnership or limited partnership, which alone or in conjunction with others, directly or indirectly, controls the manufacturing, processing or preparation for sale of pork products having a total annual wholesale value of $10,000,000 or more. Any person, firm, corporation, limited liability company, corporate partnership or limited partner with a 10% or greater interest in another person, firm, corporation, limited liability company, corporate partner- ship or limited partnership involved in the manufacturing, processing or preparation for sale of pork products having a total annual wholesale value of $10,000,000 or more shall also be considered a processor. The term ``processor'' shall not include collective bargaining units or farmer-owned cooperatives.
Sec. 39. K.S.A. 1997 Supp. 17-5904 is hereby amended to read as follows: 17-5904. (a)
No corporation, trust, limited liability company, limited partnership or corporate partner-
ship, other than a family farm corporation, authorized farm corporation, limited liability
agricultural company, family farm limited liability agricultural company, limited agricultural
partnership, family trust, authorized trust or testamentary trust shall, either directly or in-
directly, own, acquire or otherwise obtain or lease any agricultural land in this state. The
restrictions provided in this section do not apply to the following:
(1) A bona fide encumbrance taken for purposes of security.
(2) Agricultural land when acquired as a gift, either by grant or devise, by a bona fide
educational, religious or charitable nonprofit corporation.
(3) Agricultural land acquired by a corporation or a limited liability company in such
acreage as is necessary for the operation of a nonfarming business. Such land may not be
used for farming except under lease to one or more natural persons, a family farm corpo-
ration, authorized farm corporation, family trust, authorized trust or testamentary trust. The
corporation shall not engage, either directly or indirectly, in the farming operation and shall
not receive any financial benefit, other than rent, from the farming operation.
(4) Agricultural land acquired by a corporation or a limited liability company by process
of law in the collection of debts, or pursuant to a contract for deed executed prior to the
effective date of this act, or by any procedure for the enforcement of a lien or claim thereon,
whether created by mortgage or otherwise, if such corporation divests itself of any such
agricultural land within 10 years after such process of law, contract or procedure, except
that provisions of K.S.A. 9-1102, and amendments thereto, shall apply to any bank which
acquires agricultural land.
(5) A municipal corporation.
(6) Agricultural land which is acquired by a trust company or bank in a fiduciary capacity
or as a trustee for a nonprofit corporation.
(7) Agricultural land owned or leased or held under a lease purchase agreement as
described in K.S.A. 12-1741, and amendments thereto, by a corporation, corporate part-
nership, limited corporate partnership or trust on the effective date of this act if: (A) Any
such entity owned or leased such agricultural land prior to July 1, 1965, provided such entity
shall not own or lease any greater acreage of agricultural land than it owned or leased prior
to the effective date of this act unless it is in compliance with the provisions of this act; (B)
any such entity was in compliance with the provisions of K.S.A. 17-5901 prior to its repeal
by this act, provided such entity shall not own or lease any greater acreage of agricultural
land than it owned or leased prior to the effective date of this act unless it is in compliance
with the provisions of this act, and absence of evidence in the records of the county where
such land is located of a judicial determination that such entity violated the provisions of
K.S.A. 17-5901 prior to its repeal shall constitute proof that the provisions of this act do not
apply to such agricultural land, and that such entity was in compliance with the provisions
of K.S.A. 17-5901 prior to its repeal; or (C) any such entity was not in compliance with the
provisions of K.S.A. 17-5901 prior to its repeal by this act, but is in compliance with the
provisions of this act by July 1, 1991.
(8) Agricultural land held or leased by a corporation or a limited liability company for
use as a feedlot, a poultry confinement facility or rabbit confinement facility.
(9) Agricultural land held or leased by a corporation for the purpose of the production
of timber, forest products, nursery products or sod.
(10) Agricultural land used for bona fide educational research or scientific or experi-
mental farming.
(11) Agricultural land used for the commercial production and conditioning of seed for
sale or resale as seed or for the growing of alfalfa by an alfalfa processing entity if such land
is located within 30 miles of such entity's plant site.
(12) Agricultural land owned or leased by a corporate partnership or limited corporate
partnership in which the partners associated therein are either natural persons, family farm
corporations, authorized farm corporations, limited liability agricultural companies, family
trusts, authorized trusts or testamentary trusts.
(13) Any corporation, either domestic or foreign, or any limited liability company, or-
ganized for coal mining purposes which engages in farming on any tract of land owned by
it which has been strip mined for coal.
(14) Agricultural land owned or leased by a limited partnership prior to the effective
date of this act.
(15) Except as provided by K.S.A. 17-5908 and amendments thereto, agricultural land
held or leased by a corporation or a limited liability company for use as a swine production
facility in any county which has voted favorably pursuant to K.S.A. 17-5908 and amendments
thereto, either by county resolution or by the electorate.
(16) Agricultural land held or leased by a corporation or a limited liability company for
use as a dairy production facility in any county which has voted favorably pursuant to K.S.A.
17-5907 and amendments thereto, either by county resolution or by the electorate.
(17) Agricultural land held or leased by a corporation or a limited liability company used
in a hydroponics setting.
(b) Except as provided by section 40 and amendments thereto, production contracts
entered into by a corporation, trust, limited liability company, limited partnership or cor-
porate partnership and a person engaged in farming for the production of agricultural prod-
ucts shall not be construed to mean the ownership, acquisition, obtainment or lease, either
directly or indirectly, of any agricultural land in this state.
(c) Any corporation, trust, limited liability company, limited partnership or corporate
partnership, other than a family farm corporation, authorized farm corporation, limited
liability agricultural company, family farm limited liability agricultural company, limited
agricultural partnership, family trust, authorized trust or testamentary trust, violating the
provisions of this section shall be subject to a civil penalty of not more than $50,000 and
shall divest itself of any land acquired in violation of this section within one year after
judgment is entered in the action. The district courts of this state may prevent and restrain
violations of this section through the issuance of an injunction. The attorney general or
district or county attorney shall institute suits on behalf of the state to enforce the provisions
of this section.
(d) Civil penalties sued for and recovered by the attorney general shall be paid into the
state general fund. Civil penalties sued for and recovered by the county attorney or district
attorney shall be paid into the general fund of the county where the proceedings were
instigated.
New Sec. 40. (a) In order to preserve free and private enterprise, prevent monopoly
and protect consumers, it is unlawful for any processor of pork or limited partnership in
which a processor holds partnership shares as a general partner or partnership shares as a
limited partner to: (1) Contract for the production of swine of which the processor is the
owner; or (2) own swine, except such processor may own swine for 30 days before such
swine are manufactured, processed or prepared for sale as pork products.
(b) This section shall not apply to:
(1) Any production contract entered into before the effective date of this act; or
(2) any confined feeding facility that has been issued a water pollution control permit
by the secretary of health and environment before the effective date of this act.
(c) This section shall be part of and supplemental to the provisions of K.S.A. 17-5902
through 17-5908, and amendments thereto.'';
Also on page 42, by renumbering the remaining sections accordingly; in line 21, after
``Supp.'' by inserting ``17-5903, 17-5904,'';
In the title, in line 12, before ``amending'' by inserting ``prohibiting certain processors
from contracting for swine production or owning swine under certain conditions;''; in line
13, after ``Supp.'' by inserting ``17-5903, 17-5904,'';
On roll call, the vote was: Yeas 44; Nays 72; Present but not voting: 0; Absent or not
voting: 9.
Absent or not voting: Alldritt, Carmody, Cox, Kejr, Lloyd, Mayans, O'Neal, Packer, Wel-
shimer.
The motion of Rep. Larkin did not prevail.
Also, on motion of Rep. Wagle Sub. HB 2950 be amended on page 14, after line 18, by
inserting:
``(m) Before issuing any permit for a swine facility that will utilize a swine waste retention
lagoon or pond or approving any plans for a swine waste retention lagoon or pond, the
department shall make a determination, after consultation with the state corporation com-
mission, that there is no unplugged oil or gas well in the vicinity of the planned location of
such lagoon or pond. If, during construction of any swine waste retention lagoon or pond,
an unplugged well is discovered at the location of such lagoon or pond, the facility owner
and the facility operator shall have the duty to report the discovery to the department
immediately.'';
Also, roll call was demanded on motion of Rep. Johnston to amend Sub. HB 2950 on
page 32, by striking all of lines 39 through 43 and inserting:
``New Sec. 30. (a) Notwithstanding any other provision of law to the contrary, if, at an
advisory election authorized by law or at an election pursuant to K.S.A. 17-5908 and amend-
ments thereto, the voters of a county have voted against allowing the establishment of swine
production facilities in the county and such voters have not subsequently voted to allow
such facilities in the county, the secretary of health and environment shall not issue a water
pollution control permit for any of the following located in such county:
(1) Construction or operation of any new swine facility that will have an animal unit
capacity of 3,800 or more;
(2) expansion of any existing swine facility to an animal unit capacity of 3,800 or more;
or
(3) expansion of any existing swine facility if such facility has an animal unit capacity of
3,800 or more.
(b) If after the effective date of this act the voters of a county vote, at an advisory election
authorized by law or an election pursuant to K.S.A. 17-5908 and amendments thereto,
against allowing the establishment of swine production facilities in the county, the prohi-
bition of subsection (a) shall apply on and after the date of such election.
(c) Nothing in this section shall prohibit:
(1) Renewal of a water pollution control permit that was issued by the secretary before
the effective date of this act;
(2) issuance of a permit for:
(A) Construction to repair a component of an existing confined feeding facility for swine,
waste retention lagoon or pond or animal waste management system;
(B) construction to replace a component of an existing confined feeding facility for
swine, waste retention lagoon or pond or animal waste management system, if the replace-
ment does not result in an increase in swine population; or
(C) construction or expansion of an existing confined feeding facility for swine for the
purpose of increasing the swine population to the projected population, or to the population
that the animal waste management system serving the facility is designed to accommodate,
as set forth in the facility's animal waste management plans approved by the department of
health and environment before February 1, 1998.'';
By striking all of pages 33 through 41;
On page 42, by striking all of lines 1 through 16; by renumbering sections 37 and 38
accordingly; by striking all of lines 22 through 27; by renumbering section 40 accordingly;
In the title, in line 12, before ``amending'' by inserting ``prohibiting issuance of certain
permits for swine facilities;''; in line 14, by striking all after ``sections''; by striking all of lines
15 through 19; in line 20, by striking all before the period;
On roll call, the vote was: Yeas 76; Nays 43; Present but not voting: 0; Absent or not
voting: 6.
Absent or not voting: Carmody, Cox, Kejr, Lloyd, O'Neal, Packer.
The motion of Rep. Johnston prevailed, and Sub. HB 2950 be passed as amended.
REPORTS OF STANDING COMMITTEES
The Committee on Education recommends Substitute SB 402 be passed.
The Committee on Education recommends SB 298, as amended by Senate Committee,
be amended on page 1, in line 15, before ``Section'', by inserting ``New'';
On page 2, in line 3, by striking ``committed'' and inserting ``been convicted of commit-
ting''; in line 4, after ``(b)'', by inserting ``or who has entered into a criminal diversion
agreement after having been charged with an offense or act described in subsection (b)'';
in line 6, after ``act'', by inserting ``or, in the case of a person who has entered into a criminal
diversion agreement, that the person has satisfied the terms and conditions of the agree-
ment''; in line 21, by striking ``written''; in line 24, after ``(b)'', by inserting ``or to have
entered into a criminal diversion agreement after having been charged with any offense or
act specified in subsection (b)''; in line 26, after ``act'', by inserting ``or entered into any such
diversion agreement''; following line 29, by inserting two new sections as follows:
``Sec. 2. K.S.A. 72-5445 is hereby amended to read as follows: 72-5445. (a) (1) Subject
to the provisions of K.S.A. 72-5446, and amendments thereto subsection (b), the provisions
of K.S.A. 72-5438 through 72-5443, and amendments thereto, apply only to: (1) (A) Teachers
who have completed not less than three consecutive years of employment, and been offered
a fourth contract, in the school district, area vocational-technical school or community col-
lege by which any such teacher is currently employed; and (2) (B) teachers who have com-
pleted not less than two consecutive years of employment, and been offered a third contract,
in the school district, area vocational-technical school or community college by which any
such teacher is currently employed if at any time prior to the current employment the
teacher has completed the years of employment requirement of provision (1) subpart (A)
in any school district, area vocational-technical school or community college in this state.
(b) (2) Any board may waive, at any time, the years of employment requirements of subsection (a) provision (1) for any teachers employed by it.
(3) The provisions of this subsection are subject to the provisions of K.S.A. 72-5446, and amendments thereto.
(b) The provisions of K.S.A. 72-5438 through 72-5443, and amendments thereto, do not apply to any teacher whose certificate has been nonrenewed or revoked by the state board of education for the reason that the teacher: (1) Has been convicted of a felony under the uniform controlled substances act; (2) has been convicted of a felony described in any section of article 34 of chapter 21 of the Kansas Statutes Annotated or an act described in K.S.A. 21-3412 and amendments thereto, if the victim is a minor or student; (3) has been convicted of a felony described in any section of article 35 of chapter 21 of the Kansas Statutes An- notated, or has been convicted of an act described in K.S.A. 21-3517 and amendments thereto, if the victim is a minor or student; (4) has been convicted of any act described in any section of article 36 of chapter 21 of the Kansas Statutes Annotated; (5) has been con- victed of a felony described in article 37 of chapter 21 of the Kansas Statutes Annotated; (6) has been convicted of an attempt under K.S.A. 21-3301, and amendments thereto, to commit any act specified in this subsection; (7) has been convicted of any act which is described in K.S.A. 21-4301, 21-4301a or 21-4301c, and amendments thereto; (8) has been convicted in another state or by the federal government of an act similar to any act described in this subsection; or (9) has entered into a criminal diversion agreement after having been charged with any offense described in this subsection.
Sec. 3. K.S.A. 72-5445 is hereby repealed.'';
By renumbering section 2 as section 4;
In the title, in line 10, by striking ``the state board of education; relating to''; in line 11,
by striking ``applying for'' and inserting ``required to hold certificates for employment in
schools; relating to''; in line 12, after ``board'', by inserting ``of education''; also in line 12,
after ``information'', by inserting ``; rescinding due process hearing rights of persons whose
certificates are nonrenewed or revoked by reason of certain criminal activities; amending
K.S.A. 72-5445 and repealing the existing section''; and the bill be passed as amended.
The Committee on Federal and State Affairs recommends HB 2968 be passed.
The Committee on Federal and State Affairs recommends HB 2998 be not passed.
The Committee on Health and Human Services recommends SB 198, as amended by
Senate Committee, be amended on page 1, in line 15, by striking ``1996'' and inserting
``1997''; in line 19, after ``and'' where it appears for the first time, by inserting ``, except as
otherwise provided by law,''; and the bill be passed as amended.
The Committee on Health and Human Services recommends SB 485 be amended on
page 2, after line 28, by inserting the following:
``(49) Gamma hydroxybutyric acid
(50) Butyrolactone'';
and the bill be passed as amended.
The Committee on Insurance recommends SB 423 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 and concurrent resolution were introduced and read by title:
HB 3009, An act relating to the pooled money investment board; concerning audits and
comparative investment reviews; amending K.S.A. 75-4222 and 75-4234 and repealing the
existing sections; also repealing K.S.A. 75-627, by Committee on Appropriations.
HB 3010, An act concerning construction management services for public works projects
of state agencies and local governments; prescribing certain procurement procedures;
amending K.S.A. 75-1265 and repealing the existing section, by Committee on Appropria-
tions.
HOUSE CONCURRENT RESOLUTION NO. 5050--
By Representatives Cook, Gregory and Osborne, Ballou, Boston, Campbell, Compton, Dahl,
Edmonds, Farmer, Howell, Humerickhouse, Jennison, Phill Kline, Landwehr, P. Long,
Mayans, Mays, McCreary, Neufeld, O'Connor, Packer, Palmer, Powell, Presta, Shallen-
burger, Sharp, Tanner, Toplikar, Wagle and Wilson
A PROPOSITION to amend article 11 of the constitution of the state of Kansas by adding
a new section thereto, prohibiting the increase of the rate of certain taxes.
Be it resolved by the Legislature of the State of Kansas, two-thirds of the members elected (or appointed) and qualified to the House of Representatives and two-thirds of the mem- bers elected (or appointed) and qualified to the Senate concurring therein:
Section 1. The following proposition to amend the constitution of the state of Kansas
shall be submitted to the qualified electors of the state for their approval or rejection: Article
11 of the constitution of the state of Kansas is hereby amended by adding a new section
thereto to read as follows:
``§ 14. Prohibition against tax rate increases. No enactment of the legislature
shall increase the rate of any tax imposed prior to November 3, 1998, without the
affirmative vote of two-thirds of the members of the House of Representatives and
the Senate.''
Sec. 2. The following statement shall be printed on the ballot with the amendment as
a whole:
``Explanatory statement. This amendment would establish a prohibition against
general tax rate increases.
``A vote for this proposition would establish a prohibition against increases of the
rate of any tax which was imposed prior to November 3, 1998, without a two-thirds
affirmative vote of the members of the House of Representatives and the Senate.
``A vote against this proposition would maintain the absence of any tax levy rate
increase limitation in the constitution.''
Sec. 3. This resolution, if approved by two-thirds of the members elected (or appointed)
and qualified to the House of Representatives and two-thirds of the members elected (or
appointed) and qualified to the Senate, shall be entered on the journals, together with the
yeas and nays. The secretary of state shall cause this resolution to be published as provided
by law and shall cause the proposed amendment to be submitted to the electors of the state
at the general election to be held on November 3, 1998.
MESSAGE FROM THE GOVERNOR
March 12, 1998
Message to the House of Representatives of the State of Kansas:
Enclosed herewith is Executive Order No. 98-1 for your information.
EXECUTIVE ORDER NO. 98-1
Suspending Non-Essential Operations During Winter Storm Conditions
Bill Graves
Governor
The above Executive Order is on file and open for inspection in the office of the Chief
Clerk.
INTRODUCTION OF ORIGINAL MOTIONS AND HOUSE RESOLUTIONS
The following resolution was introduced and read by title:
HOUSE RESOLUTION No. 6016--
By Committee on Utilities
A RESOLUTION urging the State Corporation Commission to postpone certain proceed-
ings and conduct an investigation relating to a natural gas contract (P-0802 contract).
WHEREAS, The State Corporation has reviewed and made certain determinations with
respect to a natural gas contract, identified as the P-0802 contract; and
WHEREAS, The State Corporation Commission made certain determinations in its or-
der of March 12, 1979, in Docket No. 113,421-U, where the Commission found that the
P-0802 contract was not used and useful for the purpose of providing natural gas service to
retail customers in Kansas; and
WHEREAS, The State Corporation Commission found as follows: ``Furthermore, we are
unconvinced that this contract relationship of applicant with its wholly owned subsidiary has
been maintained strictly at `arms length'. We are particularly concerned that applicant ap-
pears to have sacrificed benefits of considerable importance by the amendments negotiated
subsequent to the original contract.'' (Order of March 12, 1979, at para. 41, page 28); and
WHEREAS, Kansas ratepayers made contributions to develop oil and gas leases in the
Bowdoin Field in Montana, which were ultimately made the subject of the P-0802 contract;
and
WHEREAS, The P-0802 contract was made the subject of a corporate spin off, wherein
utility stockholders were given one share of stock in the company that retained the P-0802
contract for each share of utility stock that was owned by the utility share owner; and
WHEREAS, Ratepayers received no benefits from the spin off; and
WHEREAS, The P-0802 contract was renegotiated as the spin off was occurring in a
transaction which was not at arm's length and which did not permit marketing out of the
contract if the price under the contract was incompatible with current market conditions;
and
WHEREAS, The price of the P-0802 contract is well above current market prices; and
WHEREAS, Parties to a State Corporation Commission docket (Docket No. 96-KNNG-
700-TAR) entered into a settlement agreement to postpone a determination of the prudency
of the P-0802 contract until after September 30, 1999, in exchange for rate relief which was
to be effective through 1999 but, in accepting the agreement, the Commission nevertheless
determined that there was evidence to support that the contract was prudent, even though
the docket was not established for the purpose of determining the prudency of the contract,
the determination was at odds with earlier rulings by the Commission concerning the con-
tract and the Commission order had the effect of undermining the settlement agreement
of the parties in Docket No. 96-KNNG-700-TAR; and
WHEREAS, On December 19, 1996, approximately 200 ratepayers appeared before the
State Corporation Commission to request a prudency review of the P-0802 contract; and
WHEREAS, In a subsequent docket (Docket No. 97-KNNG-523-GIG), the State Cor-
poration Commission agreed to investigate the assignment of the contract as part of the gas
realignment that was ordered by the Federal Energy Regulatory Commission to determine
if the assignment was proper, but the Commission refused to include the issue of the P-
0802 contract's prudency, even though such a review would impact on the contract's as-
signment: Now, therefore,
Be it resolved by the House of Representatives of the State of Kansas: That the State
Corporation Commission be urged to postpone its current proceedings in Docket No. 97-
KNNG-523-GIG until such time that the prudency of all transactions involving the P-0802
contract can be independently determined or after September 30, 1999; and
Be it further resolved: That the State Corporation Commission be urged to conduct an
investigation of all aspects of the P-0802 contract, including the earlier decision of the
Commission which established that the contract was not required for utility service in Kansas
and was not negotiated in an arm's length transaction.