The Senate was called to order by President Dick Bond.
The roll was called with forty senators present.
President Bond introduced as guest chaplain, Pastor Leo Barbee, Jr., Victory Bible
Church, Lawrence, Kansas, who delivered the invocation:
Our most gracious Heavenly Father, it is in Thy presence that we come this af-
ternoon to invoke Thy blessings upon this assembly. We realize our need of Thee to
guide this ship of state. We also humbly acknowledge that humanity is bankrupt
morally without You. In and of ourselves, we are incapable of making wise decisions
concerning humanity, let alone decisions for the State of Kansas. You have said so
clearly in Your word--The Bible--that, ``Without me you can do nothing.''
We are grateful for leaders of the past who recognized the truth of their state-
ments. Men such as Abraham Lincoln who said, ``But for the Bible we would not
know right from wrong. All things most desirable for man's welfare . . . are to be
found portrayed in it.'' President George Washington said, ``It is impossible to rightly
govern . . . without God.'' Noah Webster, stated so succinctly, `` The moral principles
and precepts contained in the scriptures ought to form the basis of all our civil
constitution and laws . . . All the miseries and evil which persons suffer from, vice,
crime, ambition, injustice . . . proceed from their despising or neglecting the precepts
contained in the Bible.
Oh, heavenly Father, there is a continued war going on between man's view and
God's view. Mankind is still seeking to substitute his view for Your view. You have
said that it is wrong to lie, to cheat, steal, commit adultery, murder innocent unborn
babies, and give acceptance to deviant lifestyles all in the guise of being tolerant.
So I pray that these senators, who have been chosen to represent us in these
sacred chambers will come to acknowledge their need of you and may they stand
for those things that you so clearly stand for in Your word. May they be courageous
where courage is needed. May they stand with conviction on your truths, regardless
of the consequences.
We thank you for each senator. We pray your blessings upon their families who
have allowed them to serve the great State of Kansas.
Last, but not least we pray that each of them will live with eternity in view, realizing
that ultimately they will have to stand before the Judge of all the earth to give an
account of their stewardship.
In Jesus' name we pray. Amen
INTRODUCTION OF BILLS AND CONCURRENT RESOLUTIONS
The following bills were introduced and read by title:
SB 565, An act concerning jurors; relating to fees; amending K.S.A. 43-171 and repealing
the existing section, by Committee on Judiciary.
SB 566, An act relating to inheritance taxation; increasing certain distributee deduction
amounts; amending K.S.A. 79-1537 and 79-1542 and repealing the existing sections, by
Senators Hensley, Barone, Biggs, Downey, Feleciano, Gilstrap, Gooch, Goodwin, Jones,
Karr, Lee, Petty and Steineger.
SB 567, An act concerning elections; relating to political advertising, by Committee on
Elections and Local Government.
SB 568, An act concerning school district capital improvements; affecting determination
of state aid entitlements; amending K.S.A. 75-2319 and repealing the existing section, by
Committee on Elections and Local Government.
SB 569, An act amending the Kansas underground utility damage prevention act; relating
to certain water lines; amending K.S.A. 1997 Supp. 66-1802 and repealing the existing
section, by Committee on Energy and Natural Resources.
SB 570, An act relating to driver's licenses; concerning the revocation or suspension
thereof for certain convictions; amending K.S.A. 8-254 and K.S.A. 1997 Supp. 8-1013 and
repealing the existing sections, by Committee on Transportation and Tourism.
SB 571, An act concerning children and juveniles; relating to students with history of
dangerous behavior; school safety and security; disclosure of certain information; unlawful
acts and penalties therefor; amending K.S.A. 1997 Supp. 38-1502, 38-1507, 38-1602, 38-
1608, 38-1618, 72-89b01, 72-89b02, 72-89b03 and 72-89b04 and repealing the existing
sections; also repealing K.S.A. 1997 Supp. 38-1502b, by Committee on Judiciary.
SB 572, An act concerning courts; relating to use of electronic audio-video communi-
cations, by Committee on Judiciary.
SB 573, An act concerning consumer protection; relating to telephone solicitation;
amending K.S.A. 50-673 and repealing the existing section; also repealing K.S.A. 1997 Supp.
50-670, by Committee on Commerce.
SB 574, An act concerning banks and trust companies; powers of bank commissioner;
repealing K.S.A. 1997 Supp. 9-1715, by Committee on Financial Institutions and Insurance.
SB 575, An act concerning insurance; terms and conditions of certain sickness and ac-
cident policies; amending K.S.A. 1997 Supp. 40-2209 and repealing the existing section, by
Committee on Financial Institutions and Insurance.
SB 576, An act concerning school districts; authorizing certain payments to certificated
personnel to be made from inservice education funds; amending K.S.A. 72-9609 and re-
pealing the existing section, by Committee on Education.
SB 577, An act concerning district courts; relating to additional district magistrate posi-
tions; amending K.S.A. 20-355 and repealing the existing section, by Committee on
Judiciary.
SB 578, An act concerning venue; relating to hearings and trials; accessible courtrooms;
amending K.S.A. 60-612 and repealing the existing section, by Committee on Judiciary.
SB 579, An act concerning jurors; relating to qualifications; amending K.S.A. 43-158 and
repealing the existing section, by Committee on Judiciary.
SB 580, An act amending and supplementing the Kansas consumer protection act; re-
lating to telemarketing fraud; requiring registration and certain record keeping; prohibiting
certain acts and providing penalties and remedies for violations; concerning prize notifica-
tion; amending K.S.A. 50-672, 50-675 and 50-692 and repealing the existing sections, by
Senator Hensley.
SB 581, An act concerning the sale of alcoholic liquor; relating to certain elections;
amending K.S.A. 41-302 and repealing the existing section, by Committee on Federal and
State Affairs.
SB 582, An act concerning the Kansas standard asset seizure and forfeiture act; relating
to covered offenses and conduct; amending K.S.A. 60-4104 and repealing the existing sec-
tion, by Committee on Judiciary.
SB 583, An act concerning crimes and punishment; relating to lewd and lascivious be-
havior; amending K.S.A. 21-3508 and repealing the existing section, by Committee on
Judiciary.
SB 584, An act concerning crimes, criminal procedure and punishment; relating to time
limitations for prosecution; amending K.S.A. 1997 Supp. 21-3106 and repealing the existing
section, by Committee on Judiciary.
REFERENCE OF BILLS AND CONCURRENT RESOLUTIONS
The following bills were referred to Committees as indicated:
Assessment and Taxation: HB 2707.
Commerce: SB 554, 555.
Education: SB 558, 559, 560.
Elections and Local Government: SB 556, 561, 562.
Energy and Natural Resources: HB 2418.
Federal and State Affairs: SB 563, 564.
Public Health and Welfare: HB 2408, 2622.
Transportation and Tourism: SB 557.
COMMUNICATIONS FROM STATE OFFICERS
KANSAS HIGHWAY PATROL
January 30, 1998
Pursuant to K.S.A. 60-4117, Walter V. Darling, Director of Fiscal and Technical Services,
Kansas Highway Patrol, submitted a report regarding state forfeiture funds.
The President announced the above report is on file in the office of the Secretary of the
Senate and is available for review at any time.
CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 373, submits the following report:
The Senate accedes to all House amendments to the bill, and your committee on con-
ference further agrees to amend the bill, as printed with House Committee of the Whole
amendments, as follows:
On page 3, in line 30, by striking ``certificate'' and inserting ``certificates'';
On page 4, in line 10, by striking ``July 1'' and inserting ``December 31''; by striking all
in lines 19 through 21; following line 21, by inserting the following new subsections:
``(m) ''Medical center employee`` means an employee of the university of Kansas medical
center whose salary is not paid in whole or in part from the hospital revenue fund.
(n) ``Hospital employee'' means an employee of the university of Kansas medical center
who performs services for the university of Kansas hospital as part of one or more depart-
ments or other administrative units of the hospital and whose salary is paid in whole or in
part from the hospital revenue fund.``;
Also on page 4, in line 22, by striking ``(m)'' and inserting ``(o)''; in line 23, by striking
``(n)'' and inserting ``(p)''; in line 31, by striking ``16 member'' and inserting ``fourteen-
member''; in line 32, by striking ``Six'' and inserting ``Eight''; in line 36, by striking ``six'' and
inserting ``eight'';
On page 5, in line 3, by striking all following the period; by striking all in lines 4 and 5;
in line 6, by striking ``six'' and inserting ``eight''; in line 13, by striking ``six'' and inserting
``eight''; in line 16, preceding the period, by inserting ``and two members shall be members
of the Kansas legislature. The two legislative appointees shall be appointed by the governor
from a panel of four nominees composed of (1) one member of the legislature nominated
by the speaker of the house of representatives, (2) one member of the legislature nominated
by the minority leader of the house of representatives, (3) one member of the legislature
nominated by the president of the senate, and (4) one member of the legislature nominated
by the minority leader of the senate''; in line 18, by striking ``two'' where it appears the last
time; in line 19, by striking ``years, two'' and inserting ``one year, three''; in line 20, by
striking all preceding ``members'' and inserting ``two years and three''; in line 21, by striking
``four'' and inserting ``three''; by striking all in lines 22 through 36; in line 37, by striking
``(f)'' and inserting ``(e)''; in line 38, by striking ``four'' and inserting ``three'';
On page 6, in line 1, by striking ``four-year'' and inserting ``three-year''; in line 2, by striking
``(g)'' and inserting ``(f)''; in line 8, by striking ``(h)'' and inserting ``(g)''; by striking all in lines
10 through 23; in line 24, by striking ``(i)'' and inserting ``(h)''; in line 32, by striking ``(j)''
and inserting ``(i)''; in line 41, by striking ``(k)'' and inserting ``(j)'';
On page 7, in line 6, by striking ``(l)'' and inserting ``(k)''; in line 8, by striking ``eight'' and
inserting ``seven''; in line 12, by striking ``(m)'' and inserting ``(l)''; in line 22, by striking
``eight'' and inserting ``seven''; in line 25, by striking ``(i)'' and inserting ``(h)''; in line 26, by
striking ``(n)'' and inserting ``(m)''; in line 29, by striking ``of directors'' where it appears the
first time; also in line 29, by striking ``of directors'' where it appears the second time; in line
36, by striking ``(o)'' and inserting ``(n)''; in line 40, by striking ``(p)'' and inserting ``(o)'';
On page 8, by striking all in lines 5 through 43;
On page 9, in line 10, following ``when'', by inserting ``in the opinion of the board''; in
line 37, following ``when'', by inserting ``in the opinion of the board'';
On page 10, in line 33, by striking ``have'' and inserting ``Have''; in line 43, by striking
the period and inserting a semicolon;
On page 12, by striking all in lines 37 through 43;
On page 13, by striking all in lines 1 through 10 and inserting the following material to
read as follows:
``(h) The authority is authorized to negotiate contracts with one or more qualified parties
to provide collection services. The selection of a collection services provider shall be based
on responses to a request for proposals from qualified professional firms and shall be ad-
ministered in accordance with policies adopted by the board.
(i) Notwithstanding any provision of law to the contrary, no abortion shall be performed,
except in the event of a medical emergency, in any medical facility, hospital or clinic owned,
leased or operated by the authority. The provisions of this subsection are not applicable to
any member of the physician faculty of the university of Kansas school of medicine on
property not owned, leased or operated by the authority. As used in this subsection, ``medical
emergency'' means a pregnant woman's medical condition that, on the basis of a physician's
good-faith clinical judgment, necessitates an immediate abortion to avert the woman's death
or to avert a serious risk of substantial and irreversible impairment of a major bodily func-
tion.'';
On page 14, in line 32, by striking ``other'';
On page 15, in line 10, by striking ``Employees'' and inserting ``Hospital employees and
medical center employees''; in line 14, by striking ``Vacation'' and inserting ``Notwithstanding
the provisions of K.A.R. 1-9-13 or any other rules and regulations or of any statute to the
contrary, all vacation''; in line 23, preceding ``university'' by inserting ``employees of the'';
in line 24, by striking ``employees'';
On page 16, in line 36, by striking ``general'';
On page 18, in line 2, following the semicolon, by inserting ``and'';
On page 21, in line 20, by striking ``1996 Supp.'';
On page 22, in line 20, by striking ``1996 Supp.'';
On page 24, in line 5, by striking ``shall be exempted'' and inserting ``is exempt'';
On page 31, in line 34, by striking ``1996 Supp.'';
On page 34, by striking all in lines 41, 42 and 43;
By striking all on pages 35 through 44;
On page 45, by striking all in lines 1 through 8 and inserting the following sections to
read as follows:
``Sec. 27. K.S.A. 79-3606 is hereby amended to read as follows: 79-3606. The following
shall be exempt from the tax imposed by this act:
(a) All sales of motor-vehicle fuel or other articles upon which a sales or excise tax has
been paid, not subject to refund, under the laws of this state except cigarettes as defined
by K.S.A. 79-3301 and amendments thereto, cereal malt beverages and malt products as
defined by K.S.A. 79-3817 and amendments thereto, including wort, liquid malt, malt syrup
and malt extract, which is not subject to taxation under the provisions of K.S.A. 79-41a02
and amendments thereto, and motor vehicles as defined by K.S.A. 79-1017 and amendments
thereto;
(b) all sales of tangible personal property or service, including the renting and leasing
of tangible personal property, purchased directly by the state of Kansas, a political subdi-
vision thereof, other than a school or educational institution, or purchased by a public or
private nonprofit hospital or public hospital authority or nonprofit blood, tissue or organ
bank and used exclusively for state, political subdivision, hospital or public hospital authority
or nonprofit blood, tissue or organ bank purposes, except when: (1) Such state or, hospital or public hospital authority is engaged or proposes to engage in any business specifically
taxable under the provisions of this act and such items of tangible personal property or
service are used or proposed to be used in such business, or (2) such political subdivision
is engaged or proposes to engage in the business of furnishing gas, water, electricity or heat
to others and such items of personal property or service are used or proposed to be used
in such business;
(c) all sales of tangible personal property or services, including the renting and leasing
of tangible personal property, purchased directly by a public or private elementary or sec-
ondary school or public or private nonprofit educational institution and used primarily by
such school or institution for nonsectarian programs and activities provided or sponsored
by such school or institution or in the erection, repair or enlargement of buildings to be
used for such purposes. The exemption herein provided shall not apply to erection, con-
struction, repair, enlargement or equipment of buildings used primarily for human habita-
tion;
(d) all sales of tangible personal property or services purchased by a contractor for the
purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, fur-
nishing or remodeling facilities for any public or private nonprofit hospital or public hospital authority, public or private elementary or secondary school or a public or private nonprofit
educational institution, which would be exempt from taxation under the provisions of this
act if purchased directly by such hospital or public hospital authority, school or educational
institution; and all sales of tangible personal property or services purchased by a contractor
for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging,
furnishing or remodeling facilities for any political subdivision of the state, the total cost of
which is paid from funds of such political subdivision and which would be exempt from
taxation under the provisions of this act if purchased directly by such political subdivision.
Nothing in this subsection or in the provisions of K.S.A. 12-3418 and amendments thereto,
shall be deemed to exempt the purchase of any construction machinery, equipment or tools
used in the constructing, equipping, reconstructing, maintaining, repairing, enlarging, fur-
nishing or remodeling facilities for any political subdivision of the state. As used in this
subsection, K.S.A. 12-3418 and 79-3640, and amendments thereto, ``funds of a political
subdivision'' shall mean general tax revenues, the proceeds of any bonds and gifts or grants-
in-aid. Gifts shall not mean funds used for the purpose of constructing, equipping, recon-
structing, repairing, enlarging, furnishing or remodeling facilities which are to be leased to
the donor. When any political subdivision of the state, public or private nonprofit hospital or public hospital authority, public or private elementary or secondary school or public or
private nonprofit educational institution shall contract for the purpose of constructing,
equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling fa-
cilities, it shall obtain from the state and furnish to the contractor an exemption certificate
for the project involved, and the contractor may purchase materials for incorporation in
such project. The contractor shall furnish the number of such certificate to all suppliers
from whom such purchases are made, and such suppliers shall execute invoices covering
the same bearing the number of such certificate. Upon completion of the project the con-
tractor shall furnish to the political subdivision, hospital or public hospital authority, school
or educational institution concerned a sworn statement, on a form to be provided by the
director of taxation, that all purchases so made were entitled to exemption under this sub-
section. As an alternative to the foregoing procedure, any such contracting entity may apply
to the secretary of revenue for agent status for the sole purpose of issuing and furnishing
project exemption certificates to contractors pursuant to rules and regulations adopted by
the secretary establishing conditions and standards for the granting and maintaining of such
status. All invoices shall be held by the contractor for a period of five years and shall be
subject to audit by the director of taxation. If any materials purchased under such a certif-
icate are found not to have been incorporated in the building or other project or not to have
been returned for credit or the sales or compensating tax otherwise imposed upon such
materials which will not be so incorporated in the building or other project reported and
paid by such contractor to the director of taxation not later than the 20th day of the month
following the close of the month in which it shall be determined that such materials will not
be used for the purpose for which such certificate was issued, the political subdivision,
hospital or public hospital authority, school or educational institution concerned shall be
liable for tax on all materials purchased for the project, and upon payment thereof it may
recover the same from the contractor together with reasonable attorney fees. Any contractor
or any agent, employee or subcontractor thereof, who shall use or otherwise dispose of any
materials purchased under such a certificate for any purpose other than that for which such
a certificate is issued without the payment of the sales or compensating tax otherwise im-
posed upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor,
shall be subject to the penalties provided for in subsection (g) of K.S.A. 79-3615, and amend-
ments thereto;
(e) all sales of tangible personal property or services purchased by a contractor for the
erection, repair or enlargement of buildings or other projects for the government of the
United States, its agencies or instrumentalities, which would be exempt from taxation if
purchased directly by the government of the United States, its agencies or instrumentalities.
When the government of the United States, its agencies or instrumentalities shall contract
for the erection, repair, or enlargement of any building or other project, it shall obtain from
the state and furnish to the contractor an exemption certificate for the project involved, and
the contractor may purchase materials for incorporation in such project. The contractor
shall furnish the number of such certificates to all suppliers from whom such purchases are
made, and such suppliers shall execute invoices covering the same bearing the number of
such certificate. Upon completion of the project the contractor shall furnish to the govern-
ment of the United States, its agencies or instrumentalities concerned a sworn statement,
on a form to be provided by the director of taxation, that all purchases so made were entitled
to exemption under this subsection. As an alternative to the foregoing procedure, any such
contracting entity may apply to the secretary of revenue for agent status for the sole purpose
of issuing and furnishing project exemption certificates to contractors pursuant to rules and
regulations adopted by the secretary establishing conditions and standards for the granting
and maintaining of such status. All invoices shall be held by the contractor for a period of
five years and shall be subject to audit by the director of taxation. Any contractor or any
agent, employee or subcontractor thereof, who shall use or otherwise dispose of any ma-
terials purchased under such a certificate for any purpose other than that for which such a
certificate is issued without the payment of the sales or compensating tax otherwise imposed
upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor, shall
be subject to the penalties provided for in subsection (g) of K.S.A. 79-3615 and amendments
thereto;
(f) tangible personal property purchased by a railroad or public utility for consumption
or movement directly and immediately in interstate commerce;
(g) sales of aircraft including remanufactured and modified aircraft, sales of aircraft
repair, modification and replacement parts and sales of services employed in the remanu-
facture, modification and repair of aircraft sold to persons using such aircraft and aircraft
repair, modification and replacement parts as certified or licensed carriers of persons or
property in interstate or foreign commerce under authority of the laws of the United States
or any foreign government or sold to any foreign government or agency or instrumentality
of such foreign government and all sales of aircraft, aircraft parts, replacement parts and
services employed in the remanufacture, modification and repair of aircraft for use outside
of the United States;
(h) all rentals of nonsectarian textbooks by public or private elementary or secondary
schools;
(i) the lease or rental of all films, records, tapes, or any type of sound or picture tran-
scriptions used by motion picture exhibitors;
(j) meals served without charge or food used in the preparation of such meals to em-
ployees of any restaurant, eating house, dining car, hotel, drugstore or other place where
meals or drinks are regularly sold to the public if such employees' duties are related to the
furnishing or sale of such meals or drinks;
(k) any motor vehicle, semitrailer or pole trailer, as such terms are defined by K.S.A.
8-126 and amendments thereto, or aircraft sold and delivered in this state to a bona fide
resident of another state, which motor vehicle, semitrailer, pole trailer or aircraft is not to
be registered or based in this state and which vehicle, semitrailer, pole trailer or aircraft will
not remain in this state more than 10 days;
(l) all isolated or occasional sales of tangible personal property, services, substances or
things, except isolated or occasional sale of motor vehicles specifically taxed under the pro-
visions of subsection (o) of K.S.A. 79-3603 and amendments thereto;
(m) all sales of tangible personal property which become an ingredient or component
part of tangible personal property or services produced, manufactured or compounded for
ultimate sale at retail within or without the state of Kansas; and any such producer, manu-
facturer or compounder may obtain from the director of taxation and furnish to the supplier
an exemption certificate number for tangible personal property for use as an ingredient or
component part of the property or services produced, manufactured or compounded;
(n) all sales of tangible personal property which is consumed in the production, man-
ufacture, processing, mining, drilling, refining or compounding of tangible personal prop-
erty, the treating of by-products or wastes derived from any such production process, the
providing of services or the irrigation of crops for ultimate sale at retail within or without
the state of Kansas; and any purchaser of such property may obtain from the director of
taxation and furnish to the supplier an exemption certificate number for tangible personal
property for consumption in such production, manufacture, processing, mining, drilling,
refining, compounding, treating, irrigation and in providing such services;
(o) all sales of animals, fowl and aquatic plants and animals, the primary purpose of
which is use in agriculture or aquaculture, as defined in K.S.A. 47-1901, and amendments
thereto, the production of food for human consumption, the production of animal, dairy,
poultry or aquatic plant and animal products, fiber or fur, or the production of offspring for
use for any such purpose or purposes;
(p) all sales of drugs, as defined by K.S.A. 65-1626 and amendments thereto, dispensed
pursuant to a prescription order, as defined by K.S.A. 65-1626 and amendments thereto,
by a licensed practitioner;
(q) all sales of insulin dispensed by a person licensed by the state board of pharmacy to
a person for treatment of diabetes at the direction of a person licensed to practice medicine
by the board of healing arts;
(r) all sales of prosthetic and orthopedic appliances prescribed in writing by a person
licensed to practice the healing arts, dentistry or optometry. For the purposes of this sub-
section, the term prosthetic and orthopedic appliances means any apparatus, instrument,
device, or equipment used to replace or substitute for any missing part of the body; used
to alleviate the malfunction of any part of the body; or used to assist any disabled person in
leading a normal life by facilitating such person's mobility; such term shall include acces-
sories attached or to be attached to motor vehicles, but such term shall not include motor
vehicles or personal property which when installed becomes a fixture to real property;
(s) all sales of tangible personal property or services purchased directly by a groundwater
management district organized or operating under the authority of K.S.A. 82a-1020 et seq.
and amendments thereto, which property or services are used in the operation or mainte-
nance of the district;
(t) all sales of farm machinery and equipment or aquaculture machinery and equipment,
repair and replacement parts therefor and services performed in the repair and maintenance
of such machinery and equipment. For the purposes of this subsection the term ``farm
machinery and equipment or aquaculture machinery and equipment'' shall include machin-
ery and equipment used in the operation of Christmas tree farming but shall not include
any passenger vehicle, truck, truck tractor, trailer, semitrailer or pole trailer, other than a
farm trailer, as such terms are defined by K.S.A. 8-126 and amendments thereto. Each
purchaser of farm machinery and equipment or aquaculture machinery and equipment
exempted herein must certify in writing on the copy of the invoice or sales ticket to be
retained by the seller that the farm machinery and equipment or aquaculture machinery
and equipment purchased will be used only in farming, ranching or aquaculture production.
Farming or ranching shall include the operation of a feedlot and farm and ranch work for
hire and the operation of a nursery;
(u) all leases or rentals of tangible personal property used as a dwelling if such tangible
personal property is leased or rented for a period of more than 28 consecutive days;
(v) all sales of food products to any contractor for use in preparing meals for delivery
to homebound elderly persons over 60 years of age and to homebound disabled persons or
to be served at a group-sitting at a location outside of the home to otherwise homebound
elderly persons over 60 years of age and to otherwise homebound disabled persons, as all
or part of any food service project funded in whole or in part by government or as part of
a private nonprofit food service project available to all such elderly or disabled persons
residing within an area of service designated by the private nonprofit organization, and all
sales of food products for use in preparing meals for consumption by indigent or homeless
individuals whether or not such meals are consumed at a place designated for such purpose;
(w) all sales of natural gas, electricity, heat and water delivered through mains, lines or
pipes: (1) To residential premises for noncommercial use by the occupant of such premises;
(2) for agricultural use and also, for such use, all sales of propane gas; (3) for use in the
severing of oil; and (4) to any property which is exempt from property taxation pursuant to
K.S.A. 79-201b Second through Sixth. As used in this paragraph, ``severing'' shall have the
meaning ascribed thereto by subsection (k) of K.S.A. 79-4216, and amendments thereto;
(x) all sales of propane gas, LP-gas, coal, wood and other fuel sources for the production
of heat or lighting for noncommercial use of an occupant of residential premises;
(y) all sales of materials and services used in the repairing, servicing, altering, maintain-
ing, manufacturing, remanufacturing, or modification of railroad rolling stock for use in
interstate or foreign commerce under authority of the laws of the United States;
(z) all sales of tangible personal property and services purchased directly by a port
authority or by a contractor therefor as provided by the provisions of K.S.A. 12-3418 and
amendments thereto;
(aa) all sales of materials and services applied to equipment which is transported into
the state from without the state for repair, service, alteration, maintenance, remanufacture
or modification and which is subsequently transported outside the state for use in the trans-
mission of liquids or natural gas by means of pipeline in interstate or foreign commerce
under authority of the laws of the United States;
(bb) all sales of used mobile homes or manufactured homes. As used in this subsection:
(1) ``Mobile homes'' and ``manufactured homes'' shall have the meanings ascribed thereto
by K.S.A. 58-4202 and amendments thereto; and (2) ``sales of used mobile homes or man-
ufactured homes'' means sales other than the original retail sale thereof;
(cc) all sales of tangible personal property or services purchased for the purpose of and
in conjunction with constructing, reconstructing, enlarging or remodeling a business or retail
business which meets the requirements established in K.S.A. 74-50,115 and amendments
thereto, and the sale and installation of machinery and equipment purchased for installation
at any such business or retail business. When a person shall contract for the construction,
reconstruction, enlargement or remodeling of any such business or retail business, such
person shall obtain from the state and furnish to the contractor an exemption certificate for
the project involved, and the contractor may purchase materials, machinery and equipment
for incorporation in such project. The contractor shall furnish the number of such certificates
to all suppliers from whom such purchases are made, and such suppliers shall execute
invoices covering the same bearing the number of such certificate. Upon completion of the
project the contractor shall furnish to the owner of the business or retail business a sworn
statement, on a form to be provided by the director of taxation, that all purchases so made
were entitled to exemption under this subsection. All invoices shall be held by the contractor
for a period of five years and shall be subject to audit by the director of taxation. Any
contractor or any agent, employee or subcontractor thereof, who shall use or otherwise
dispose of any materials, machinery or equipment purchased under such a certificate for
any purpose other than that for which such a certificate is issued without the payment of
the sales or compensating tax otherwise imposed thereon, shall be guilty of a misdemeanor
and, upon conviction therefor, shall be subject to the penalties provided for in subsection
(g) of K.S.A. 79-3615 and amendments thereto. As used in this subsection, ``business'' and
``retail business'' have the meanings respectively ascribed thereto by K.S.A. 74-50,114 and
amendments thereto;
(dd) all sales of tangible personal property purchased with food stamps issued by the
United States department of agriculture;
(ee) all sales of lottery tickets and shares made as part of a lottery operated by the state
of Kansas;
(ff) on and after July 1, 1988, all sales of new mobile homes or manufactured homes to
the extent of 40% of the gross receipts, determined without regard to any trade-in allowance,
received from such sale. As used in this subsection, ``mobile homes'' and ``manufactured
homes'' shall have the meanings ascribed thereto by K.S.A. 58-4202 and amendments
thereto;
(gg) all sales of tangible personal property purchased in accordance with vouchers issued
pursuant to the federal special supplemental food program for women, infants and children;
(hh) all sales of medical supplies and equipment purchased directly by a nonprofit skilled
nursing home or nonprofit intermediate nursing care home, as defined by K.S.A. 39-923,
and amendments thereto, for the purpose of providing medical services to residents thereof.
This exemption shall not apply to tangible personal property customarily used for human
habitation purposes;
(ii) all sales of tangible personal property purchased directly by a nonprofit organization
for nonsectarian comprehensive multidiscipline youth development programs and activities
provided or sponsored by such organization. This exemption shall not apply to tangible
personal property customarily used for human habitation purposes;
(jj) all sales of tangible personal property or services, including the renting and leasing
of tangible personal property, purchased directly on behalf of a community-based mental
retardation facility or mental health center organized pursuant to K.S.A. 19-4001 et seq.,
and amendments thereto, and licensed in accordance with the provisions of K.S.A. 75-3307b
and amendments thereto. This exemption shall not apply to tangible personal property
customarily used for human habitation purposes;
(kk) on and after January 1, 1989, all sales of machinery and equipment used directly
and primarily for the purposes of manufacturing, assembling, processing, finishing, storing,
warehousing or distributing articles of tangible personal property in this state intended for
resale by a manufacturing or processing plant or facility or a storage, warehousing or dis-
tribution facility:
(1) For purposes of this subsection, machinery and equipment shall be deemed to be
used directly and primarily in the manufacture, assemblage, processing, finishing, storing,
warehousing or distributing of tangible personal property where such machinery and equip-
ment is used during a manufacturing, assembling, processing or finishing, storing, ware-
housing or distributing operation:
(A) To effect a direct and immediate physical change upon the tangible personal property;
(B) to guide or measure a direct and immediate physical change upon such property
where such function is an integral and essential part of tuning, verifying or aligning the
component parts of such property;
(C) to test or measure such property where such function is an integral part of the
production flow or function;
(D) to transport, convey or handle such property during the manufacturing, processing,
storing, warehousing or distribution operation at the plant or facility; or
(E) to place such property in the container, package or wrapping in which such property
is normally sold or transported.
(2) For purposes of this subsection ``machinery and equipment used directly and pri-
marily'' shall include, but not be limited to:
(A) Mechanical machines or major components thereof contributing to a manufacturing,
assembling or finishing process;
(B) molds and dies that determine the physical characteristics of the finished product
or its packaging material;
(C) testing equipment to determine the quality of the finished product;
(D) computers and related peripheral equipment that directly control or measure the
manufacturing process or which are utilized for engineering of the finished product; and
(E) computers and related peripheral equipment utilized for research and development
and product design.
(3) ``Machinery and equipment used directly and primarily'' shall not include:
(A) Hand tools;
(B) machinery, equipment and tools used in maintaining and repairing any type of ma-
chinery and equipment;
(C) transportation equipment not used in the manufacturing, assembling, processing,
furnishing, storing, warehousing or distributing process at the plant or facility;
(D) office machines and equipment including computers and related peripheral equip-
ment not directly and primarily used in controlling or measuring the manufacturing process;
(E) furniture and buildings; and
(F) machinery and equipment used in administrative, accounting, sales or other such
activities of the business;
(ll) all sales of educational materials purchased for distribution to the public at no charge
by a nonprofit corporation organized for the purpose of encouraging, fostering and con-
ducting programs for the improvement of public health;
(mm) all sales of seeds and tree seedlings; fertilizers, insecticides, herbicides, germi-
cides, pesticides and fungicides; and services, purchased and used for the purpose of pro-
ducing plants in order to prevent soil erosion on land devoted to agricultural use;
(nn) except as otherwise provided in this act, all sales of services rendered by an ad-
vertising agency or licensed broadcast station or any member, agent or employee thereof;
(oo) all sales of tangible personal property purchased by a community action group or
agency for the exclusive purpose of repairing or weatherizing housing occupied by low
income individuals;
(pp) all sales of drill bits and explosives actually utilized in the exploration and produc-
tion of oil or gas;
(qq) all sales of tangible personal property and services purchased by a nonprofit mu-
seum or historical society or any combination thereof, including a nonprofit organization
which is organized for the purpose of stimulating public interest in the exploration of space
by providing educational information, exhibits and experiences, which is exempt from fed-
eral income taxation pursuant to section 501(c)(3) of the federal internal revenue code of
1986;
(rr) all sales of tangible personal property which will admit the purchaser thereof to any
annual event sponsored by a nonprofit organization which is exempt from federal income
taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986;
(ss) all sales of tangible personal property and services purchased by a public broad-
casting station licensed by the federal communications commission as a noncommercial
educational television or radio station;
(tt) all sales of tangible personal property and services purchased by or on behalf of a
not-for-profit corporation which is exempt from federal income taxation pursuant to section
501(c)(3) of the federal internal revenue code of 1986, for the sole purpose of constructing
a Kansas Korean War memorial;
(uu) all sales of tangible personal property and services purchased by or on behalf of
any rural volunteer fire-fighting organization for use exclusively in the performance of its
duties and functions;
(vv) all sales of tangible personal property purchased by any of the following organiza-
tions which are exempt from federal income taxation pursuant to section 501 (c)(3) of the
federal internal revenue code of 1986, for the following purposes, and all sales of any such
property by or on behalf of any such organization for any such purpose:
(1) The American Heart Association, Kansas Affiliate, Inc. for the purposes of providing
education, training, certification in emergency cardiac care, research and other related serv-
ices to reduce disability and death from cardiovascular diseases and stroke;
(2) the Kansas Alliance for the Mentally Ill, Inc. for the purpose of advocacy for persons
with mental illness and to education, research and support for their families;
(3) the Kansas Mental Illness Awareness Council for the purposes of advocacy for per-
sons who are mentally ill and to education, research and support for them and their families;
(4) the American Diabetes Association Kansas Affiliate, Inc. for the purpose of elimi-
nating diabetes through medical research, public education focusing on disease prevention
and education, patient education including information on coping with diabetes, and pro-
fessional education and training;
(5) the American Lung Association of Kansas, Inc. for the purpose of eliminating all
lung diseases through medical research, public education including information on coping
with lung diseases, professional education and training related to lung disease and other
related services to reduce the incidence of disability and death due to lung disease;
(6) the Kansas chapters of the Alzheimer's Disease and Related Disorders Association,
Inc. for the purpose of providing assistance and support to persons in Kansas with Alzhei-
mer's disease, and their families and caregivers; and
(ww) all sales of tangible personal property purchased by the Habitat for Humanities Humanity for the exclusive use of being incorporated within a housing project constructed
by such organization.
New Sec. 28. (a) There is hereby created the joint committee on oversight of the uni-
versity of Kansas hospital authority which shall be within the legislative branch of state
government and shall be composed of three senators and three members of the house of
representatives. The three senate members shall be the chairperson of the committee on
ways and means of the senate or a member of the senate appointed by the chairperson, the
vice-chairperson of the committee on ways and means of the senate or a member of the
senate appointed by the vice-chairperson, and the ranking minority member of the com-
mittee on ways and means of the senate or a member of the senate appointed by the ranking
minority member. The three representative members shall be the chairperson of the com-
mittee on appropriations of the house of representatives or a member of the house of
representatives appointed by the chairperson, the vice-chairperson of the committee on
appropriations of the house of representatives or a member of the house of representatives
appointed by the vice-chairperson, and the ranking minority member of the committee on
appropriations of the house of representatives or a member of the house of representatives
appointed by the ranking minority member.
(b) All members of the joint committee on oversight of the university of Kansas hospital
authority shall serve for terms ending on the first day of the regular legislative session in
odd-numbered years. The joint committee shall organize annually and elect a chairperson
and vice-chairperson in accordance with this subsection. After June 30 in odd-numbered
years, the chairperson shall be one of the representative members of the joint committee
elected by the members of the joint committee and the vice-chairperson shall be one of the
senate members elected by the members of the joint committee. After June 30 in even-
numbered years, the chairperson shall be one of the senate members of the joint committee
elected by the members of the joint committee and the vice-chairperson shall be on of the
representative members of the joint committee elected by the members of the joint com-
mittee. The chairperson and vice-chairperson of the joint committee shall serve in such
capacities until July 1 of the ensuing year. The vice-chairperson shall exercise all the powers
of the chairperson in the absence of the chairperson. If a vacancy occurs in the office of
chairperson or vice-chairperson, a member of the joint committee, who is a member of the
same house as the member who vacated the office, shall be elected by members of the joint
committee to fill such vacancy. Within 30 days after the effective date of this act, the joint
committee shall organize and elect a chairperson and vice-chairperson in accordance with
the provisions of this act.
(c) A quorum of the joint committee shall be four. All actions of the joint committee
shall be taken by a majority of all of the members of the joint committee.
(d) The joint committee may meet at any time and at any place within the state on the
call of the chairperson.
(e) The provisions of the acts contained in article 12 of chapter 46 of the Kansas Statutes
Annotated, and amendments thereto, applicable to special committees shall apply to the
joint committee on oversight of the university of Kansas hospital authority to the extent that
the same do not conflict with the specific provisions of this act applicable to the joint
committee.
(f) In accordance with K.S.A. 46-1204 and amendments thereto, the legislative coor-
dinating council may provide for such professional services as may be requested by the joint
committee on oversight of the university of Kansas hospital authority.
(g) The joint committee on oversight of the university of Kansas hospital authority may
introduce such legislation as it deems necessary in performing its functions.
(h) In addition to other powers and duties authorized or prescribed by law or by the
legislative coordinating council, the joint committee on oversight of the university of Kansas
hospital authority shall:
(1) Make an annual report to the legislative coordinating council as provided in K.S.A.
46-1207 and amendments thereto and such special reports to committees of the house of
representatives and senate as are deemed appropriate by the joint committee;
(2) monitor the implementation of the university of Kansas hospital authority act in-
cluding the transfer of assets and liabilities from the university of Kansas medical center to
the newly-created authority and the development of operational policies by the board of
directors of the authority;
(3) review administrative systems implemented by the authority including the establish-
ment of personnel and financial management systems;
(4) analyze the quantity and quality of services rendered by the authority and the need
for such services;
(5) conduct an on-going review of revenues and costs;
(6) review the authority's capital structure, plans for the issuance of indebtedness for
major equipment acquisitions or capital investments, and long range physical development
plans; and
(7) make recommendations, including the introduction of legislation, and take such
other actions as are appropriate to assure that the purposes of the legislation establishing
the hospital authority are achieving the objectives for which the authority was created.
(i) The provisions of this section shall expire on December 31, 2003.'';
And by renumbering sections accordingly;
Also on page 45, in line 9, by striking ``1996 Supp.''; in line 12, by striking ``statute book''
and inserting ``Kansas register'';
On page 1, in the title, in line 19, after ``directors'' by inserting ``; creating a legislative
oversight committee''; in line 20, by striking ``1996 Supp.'';
And your committee on conference recommends the adoption of this report.
Michael P. Farmer
John T. edmonds
Henry J. Helgerson
Conferees on part of House
Dave Kerr
Alicia L. Salisbury
Marge Petty Conferees on part of Senate
Senator Kerr moved the Senate adopt the Conference Committee report on SB 373.
On roll call, the vote was: Yeas 39, nays 1, present and passing 0; absent or not voting 0.
Committee on Education begs leave to submit the following report:
The following appointment was referred to and considered by the committee and your
committee recommends that the Senate approve and consent to such appointment:
By the Governor:
Kansas Board of Regents: K.S.A. 74-3201
Murray Lull, term expires January 15, 2002
Committee on Elections and Local Government recommends SB 451 be passed.
Committee on Federal and State Affairs begs leave to submit the following report:
The following appointments were referred to and considered by the committee and your
committee recommends that the Senate approve and consent to such appointments:
By the Governor:
Kansas Commission on Human Rights: K.S.A. 44-1003
Robert A. Wesley, term expires January 15, 2002
Kansas Lottery Commission: K.S.A. 74-8709
Paul M. Steele, term expires March 15, 2002
Committee on Ways and Means recommends SB 464 be passed.
Also SB 382 be amended on page 1, in line 27, by striking ``1996'' and inserting ``1997'';
On page 4, in line 20, by striking ``1996'' and inserting ``1997'';
On page 5, in line 27, after ``1986'' by inserting ``as applicable to governmental plans,'';
also in line 27, by striking ``1997'' and inserting ``1998''; in line 28, by striking ``1997'' and
inserting ``1998'';
On page 6, in lines 23 and 29, by striking ``1997'' and inserting ``1998'';
On page 8, in line 22, by striking ``1997'' and inserting ``1998'';
On page 9, in line 27, by striking ``1996'' and inserting ``1997'';
On page 10, in line 25, by striking ``1996'' and inserting ``1997''; in line 40, by striking
``1997'' and inserting ``1998'';
On page 11, in line 11, by striking ``1997'' and inserting ``1998'';
On page 12, in line 27, by striking ``1997'' and inserting ``1998'';
On page 13, in line 33, by striking ``1996'' and inserting ``1997'';
On page 14, in line 42, by striking ``1997'' and inserting ``1998''; in line 43, by striking
``1996'' and inserting ``1997'';
On page 15, in line 35, by striking ``and'' the first time it appears; in line 36, by striking
``1997'' and inserting ``1998'';
On page 17, in line 19, by striking ``1997'' and inserting ``1998'';
On page 22, in line 34, by striking ``rules of'' and inserting ``regulations under'';
On page 24, in line 13, by striking all after the period; by striking all in line 14;
On page 28, in line 3, by striking ``1997'' and inserting ``1998'';
On page 29, in line 1, by striking ``1997'' and inserting ``1998''; in line 8, by striking ``to
70, inclusive'';
On page 32, in line 39, by striking ``1996'' and inserting ``1997'';
On page 40, in lines 17 and 20, by striking ``1997'' and inserting ``1998''; in line 21, by
striking ``1996'' and inserting ``1997'';
On page 41, in line 43, by striking ``1996'' and inserting ``1997'';
On page 44, in line 23, by striking ``1997'' and inserting ``1998'';
On page 45, in line 18, by striking ``1997'' and inserting ``1998''; by striking all in lines 19
through 43;
On page 46, by striking all in lines 1 through 33 and inserting the following section:
``Sec. 31. K.S.A. 1997 Supp. 74-4911f is hereby amended to read as follows: 74-4911f.
(a) Subject to procedures or limitations prescribed by the governor, any person who is not an employee and who becomes a state officer may elect to not become a member of the
system. The election to not become a member of the system must be filed within 90 days of assuming the position of state officer. Such election shall be irrevocable. If such election is not filed by such state officer, such state officer shall be a member of the system.
(b) (1) Any such state officer described in subsection (a) who is a member of the Kansas
public employees retirement system, on or after the effective date of this act, may elect to
not be a member by filing an election with the office of the retirement system. Each state officer filing such election may withdraw the state officer's accumulated contributions then on deposit with the system in the same manner as prescribed in K.S.A. 74-4917 and amend- ments thereto for employees upon termination.
(2) Any state officer who has filed an election and received a refund of contributions shall be entitled to again become a member of the system upon the filing of proper notice in such form as prescribed by the system and upon the making of a single lump-sum payment in an amount equal to all withdrawn contributions, plus interest at a rate specified by the system. The election to not become a member of the system must be filed within 90 days of assuming the position of state officer. If such election is not filed by such state officer, such state officer shall be a member of the system.
(c) Subject to limitations prescribed by the secretary of administration, the state agency
employing any employee who has filed an election as provided under subsection (a) or (b)
and who has entered into an employee participation agreement, as provided in K.S.A. 75-
5524 and amendments thereto for deferred compensation pursuant to the Kansas public
employees deferred compensation plan shall contribute to such plan on such employee's
behalf an amount equal to 8% of the employee's salary, as such salary has been approved
pursuant to K.S.A. 75-2935b and amendments thereto or as otherwise prescribed by law.
(d) As used in this section and K.S.A. 74-4927k and amendments thereto, ``state officer''
means the secretary of administration, secretary on aging, secretary of commerce and hous-
ing, secretary of corrections, secretary of health and environment, secretary of human re-
sources, secretary of revenue, secretary of social and rehabilitation services, secretary of
transportation, secretary of wildlife and parks, superintendent of the Kansas highway patrol,
secretary of agriculture, executive director of the Kansas lottery, executive director of the
Kansas racing commission, president of the Kansas development finance authority, state fire
marshal, state librarian, securities commissioner, adjutant general, members of the state
board of tax appeals, members of the Kansas parole board, members of the state corporation
commission, any unclassified employee on the staff of officers of both houses of the legis-
lature, any unclassified employee appointed to the governor's or lieutenant governor's staff
and any person employed by the legislative branch of the state of Kansas, other than any
such person receiving service credited under the Kansas public employees retirement system
or any other retirement system of the state of Kansas therefor, who elected to be covered
by the provisions of this section as provided in subsection (e) of K.S.A. 46-1302 and amend-
ments thereto or who is first employed on or after July 1, 1996, by the legislative branch of
the state of Kansas.
(e) The provisions of this section shall not apply to any state officer who has elected to
remain eligible for assistance by the state board of regents as provided in subsection (a) of
K.S.A. 74-4925 and amendments thereto.''
On page 47, in line 9, by striking ``1997'' and inserting ``1998''; in line 28, by striking
``1996'' and inserting ``1997'';
On page 49, in line 31, by striking ``1996'' and inserting ``1997'';
On page 53, in lines 26 and 41, by striking ``1996'' and inserting ``1997''; in line 27, after
``by'' by inserting ``the''; also in line 27, by striking ``law'' and inserting ``internal revenue
code''; in line 34, after ``under'' by inserting ``the''; also in line 34, by striking ``law'' and
inserting ``internal revenue code'';
On page 57, in line 40, by striking ``1996'' and inserting ``1997'';
On page 60, in line 17, by striking ``1996'' and inserting ``1997'';
On page 61, in line 11, by striking ``1996'' and inserting ``1997'';
On page 62, in line 6, by striking ``1996'' and inserting ``1997'';
On page 63, in line 5, by striking ``1996'' and inserting ``1997'';
On page 64, in line 33, by striking ``1996 Supp.'';
On page 66, in line 25, by striking ``1996'' and inserting ``1997'';
On page 68, in line 20, by striking ``1996'' and inserting ``1997'';
On page 69, in lines 11 and 41, by striking ``1996'' and inserting ``1997'';
On page 70, in line 34, by striking ``1996'' and inserting ``1997'';
On page 72, in line 15, by striking ``1996'' and inserting ``1997'';
On page 73, in line 29, by striking ``1996'' and inserting ``1997'';
On page 82, in line 36, by striking ``1996'' and inserting ``1997'';
On page 84, in line 23, by striking ``employees'' and inserting ``employees''';
On page 85, in line 7, by striking ``1996'' and inserting ``1997''; in line 38, by striking
``1997'' and inserting ``1998'';
On page 87, in line 24, by striking ``1996'' and inserting ``1997'';
On page 88, in line 35, by striking ``1996'' and inserting ``1997'';
On page 92, in line 41, by striking ``1996'' and inserting ``1997'';
On page 94, in line 35, by striking ``1996'' and inserting ``1997'';
On page 96, in line 19, by striking ``1996'' and inserting ``1997'';
On page 98, in line 6, by striking ``1996'' and inserting ``1997'';
On page 100, in line 22, by striking ``1996'' and inserting ``1997'';
On page 105, in line 14, by striking ``1996'' and inserting ``1997'';
On page 108, in line 7, by striking ``1996'' and inserting ``1997'';
On page 110, in line 8, by striking ``1996'' and inserting ``1997'';
On page 112, in line 11, by striking, ``1996'' and inserting ``1997'';
On page 115, in line 34, by striking ``1996'' and inserting ``1997'';
On page 119, in line 16, by striking ``1996'' and inserting ``1997'';
On page 120, in line 21, by striking ``1996'' and inserting ``1997'';
On page 121, in line 9, by striking all after the period; by striking all in lines 10 through
12;
On page 122, in line 17, by striking ``1997'' and inserting ``1998'';
On page 123, in line 23, by striking ``41'' and inserting ``415''; in line 27, by striking ``(b)'';
in line 32, after ``415(c)'' by inserting ``or 415(n)''; also in line 32, by striking ``using'' and
inserting ``subject to''; in line 33, by striking ``methods''; in line 37, after ``415(c)'' by inserting
``or 415(n)''; in line 38, by striking all after ``(ii)''; by striking all in lines 39 through 42 and
inserting ``An eligible participant in a retirement plan, as defined by section 1526 of the
federal taxpayer relief act of 1997, may purchase service credit without regard to the limi-
tations of section 415 (c)(1) of the federal internal revenue code as provided by state law in
effect on August 5, 1997.''; in line 43, by striking ``options'' and inserting ``option''; also in
line 43, by striking ``and (ii)'';
On page 124, in line 1, after ``415 (c)'' by inserting ``or 415 (n)'';
On page 125, in line 24, after ``plan'' by inserting ``and as in effect on July 1, 1998''; in
line 31, by striking ``1997'' and inserting ``1998''; in line 32, by striking ``86'' and inserting
``83''; after line 35, by inserting the following new sections:
``Sec. 87. K.S.A. 1997 Supp. 74-4992 is hereby amended to read as follows: 74-4992.
(a) Any such member of the legislature or former member of the legislature as described
in K.S.A. 74-4991 and amendments thereto shall become a member on entry date or upon
filing with the board an irrevocable election to become or not to become a member of the
system. In the event that any such member of the legislature or former member of the
legislature fails to file the election to become a member of the retirement system, it shall
be presumed that such member of the legislature or former member of the legislature has
elected not to become a member. The election to participate shall become effective on the
first day of the first payroll period of the first quarter following receipt of the election in
the office of the retirement system.
(b) Any member of the legislature who had attained membership in the Kansas public
employees retirement system prior to taking the oath of office as a member of the legislature
may elect not to participate in the Kansas public employees retirement system for the
purpose of service as a member of the legislature. This election, which is irrevocable, must be filed within the offices of the system. Any member of the legislature who is a member of
the retirement system on the effective date of this act and was a member of the retirement
system at the time of taking the oath of office may elect not to participate in the retirement
system for service as a member of the legislature if such irrevocable election is filed within
the offices of the system. Upon filing such election such member of the legislature shall receive a refund of all contributions made to the retirement system by filing a withdrawal application with the system.
(c) Subject to the provisions of section 83, and amendments thereto, any member of the
legislature who elected not to participate in the retirement system, and who is not a con-
tributing member with any other participating employer, may purchase such participating
service by making a single lump-sum payment in an amount determined by the actuary
using the then current rate of compensation and the actuarial assumptions and tables cur-
rently in use by the system.
(d) Subject to the provisions of section 83, and amendments thereto, except as otherwise
provided in this section, any member of the retirement system may purchase participating
service credit for employment service as described in this section, if first commenced prior
to January 1, 1996, by electing to effect such purchase by means of having employee con-
tributions as provided in K.S.A. 74-4919 and amendments thereto deducted from such
member's compensation at a percentage rate equal to two times or three times the em-
ployee's rate of contribution as provided in K.S.A. 74-4919 and amendments thereto for
such periods of service in lieu of a lump-sum amount as provided in this section. Such
deductions shall commence at the beginning of the quarter following such election and shall
remain in effect until all quarters of such service have been purchased. Any person may
make any such purchase as described in this section, if first commenced in calendar year
1996 or thereafter, at an additional rate of contribution, in addition to the employee's rate
of contribution as provided in K.S.A. 74-4919 and amendments thereto, based upon the
member's attained age at the time of purchase and using actuarial assumptions and tables
in use by the retirement system at such time of purchase, for such periods of service, in
lieu of a lump-sum amount as provided in this section. Such additional rate of contribution
shall commence at the beginning of the quarter following such election and shall remain in
effect until all quarters of such service have been purchased.
Sec. 88. K.S.A. 74-4998b is hereby amended to read as follows: 74-4998b. (a) Any
elected state official shall become a special member of the Kansas public employees retire-
ment system upon filing with the board an election to become a special member of the
system. The election to become a special member shall be made by November 18, 1988,
or within 30 days after the elected state official takes the oath of office, whichever is later,
except that no election to become a special member shall be made after the effective date
of this act. In the event that any such elected state official fails to file the election to become
a special member of the retirement system, it shall be presumed that such elected state
official has elected not to become a special member. The election to participate shall become
effective on the first day of the first payroll period coinciding with or following receipt of
the election in the office of the retirement system. The election shall remain in effect until
the member ceases to serve as an elected state official or as otherwise provided by law. On
or after July 1, 1991, no elected state official shall be a special member for purposes of this
act for any service for any payroll period during any term of office which commences after
the effective date of this act. Any elected state official who has become a special member
as provided in K.S.A. 74-4998b et seq. and amendments thereto may elect to revoke such
elected state official's status as a special member by filing with the board an election to
revoke such special member status. The election to revoke such elected state official's status
as a special member shall become effective on the first day of the first payroll period co-
inciding with or following receipt of such election in the office of the retirement system.
Any service during such period when such elected state official was a special member shall
be credited as a member and not as a special member after receipt of such elected state
official's election to revoke such special member status in the office of the retirement system.
Any contributions made by such elected state official as a result of such elected state official's
election to become a special member which exceed the contributions which would have
been made by the elected state official as a member and not as a special member shall be
returned upon separation of service to such elected state official after receipt of such elected
state official's election to revoke such special member status in the office of the retirement
system.
(b) As used in this act, ``elected state official'' means any member of the legislature, or
a former member of the legislature, the governor, the lieutenant governor, the secretary of
state, the attorney general, the commissioner of insurance and the state treasurer; and any
person who formerly served in any such capacity who has 10 or more years of credited
service and who has not yet retired or withdrawn such person's accumulated contributions.
Sec. 89. K.S.A. 74-4998c is hereby amended to read as follows: 74-4998c. (a) Except
as otherwise provided in this section, for all payroll periods commencing on or after July 1,
1988, but prior to the end of the term of office in which such elected official is serving on
the effective date of this act, each elected state official shall contribute 5% of the elected
state official's salary for each payroll period to the fund. For all payroll periods commencing
on or after July 1, 1988, but prior to the end of the term of office in which such elected
official is serving on the effective date of this act, the employer shall deduct from the
compensation of each member who has received 30 years of credited service 2% of such
member's compensation as employee contributions. Each elected state official shall make
contributions as provided in K.S.A. 74-4919 and amendments thereto in lieu of contributions
as provided in this section, for all payroll periods during any term of office of such elected
state official which commences after the effective date of this act. The provisions of K.S.A.
74-4919c, 74-4919d, 74-4919e, 74-4919h or 74-4919j and amendments thereto shall apply
to elected state officials, except that, subject to the provisions of section 83 and amendments thereto, such elected state officials shall purchase prior and participating service credit at
the rate of 10% or 15% for the payroll periods commencing on or after July 1, 1988, but
prior to the end of the term of office in which such elected official is serving on the effective
date of this act.
(b) The director of accounts and reports shall deduct the amount each elected state
official is to contribute to the fund on the payroll of each elected state official for each
payroll period showing the amount deducted and its credit to the fund. Such deductions
shall be remitted as the board may provide, to the executive secretary of the Kansas public
employees retirement system for credit to the fund to the credit of the elected state official's
individual account therein.
(c) For purposes of contributions to and benefits under the Kansas public employees
retirement system of such elected state officials who are members of the legislature, the
salary or compensation of such elected state official shall be as provided in K.S.A. 74-4995
and amendments thereto.
(d) (1) Subject to the provisions of section 83 and amendments thereto, the state of
Kansas pursuant to the provisions of section 414(h)(2) of the federal internal revenue code
of 1986, as in effect on July 1, 1998, shall pick up and pay the contributions which would
otherwise be payable by elected state officials as prescribed in subsection (a) commencing
with the effective date of this act. Contributions so picked up shall be treated as employer
contributions for purposes of determining the amounts of federal income taxes to withhold
from the elected state official's compensation.
(2) Member contributions picked up by the state shall be paid from the same source of
funds used for the payment of compensation to an elected state official. A deduction shall
be made from each elected state official's compensation equal to the amount of the elected
state official's contributions picked up by the state, provided that such deduction shall not
reduce the elected state official's compensation for purposes of computing benefits under
the retirement system.
(3) Member contributions picked up by the state shall be remitted as the board may
provide, to the executive secretary for credit to the Kansas public employees retirement
fund.
(e) No former member of the legislature shall be required to make contributions as
otherwise required by this section.
Sec. 90. K.S.A. 74-4998g is hereby amended to read as follows: 74-4998g. Except as specifically provided, the provisions of K.S.A. 74-4998b through 74-4998f and amendments thereto shall be part of and supplemental to the provisions of K.S.A. 74-4901 ;(tri-stars)rough 74- 4929 et seq. and amendments thereto and shall be governed thereby in all respects, except if specifically provided in this act, the provisions of this act shall prevail including, but not limited to, the provisions of section 83 and amendments thereto.
Sec. 91. K.S.A. 1997 Supp. 74-49,105 is hereby amended to read as follows: 74-49,105.
Every retirement benefit received by any person under subsection (b) of K.S.A. 74-49,104
and amendments thereto shall be exempt from any tax of the state of Kansas or any political
subdivision or taxing body of the state; shall not be subject to execution, garnishment, at-
tachment or except as otherwise provided, any other process or claim whatsoever; and shall
be unassignable. Any retirement benefit due and owing to any person under subsection (b)
of K.S.A. 74-49,104 and amendments thereto is subject to claims of an alternate payee under
a qualified domestic relations order. As used in this subsection, the terms ``alternate payee''
and ``qualified domestic relations order'' shall have the meaning ascribed to them in section
414(p) of the United States internal revenue code of 1954 1986, as amended as in effect on July 1, 1998, and as applicable to a governmental plan. The provisions of this act shall apply
to any qualified domestic relations order which was filed or amended either before or after
July 1, 1994.
Sec. 92. K.S.A. 74-49,107 is hereby amended to read as follows: 74-49,107. The pro-
visions of K.S.A. 74-4999 ;ø through 74-49,107, inclusive and amendments thereto, shall be
administered by the board of trustees of the Kansas public employees retirement system. K.S.A. 74-4999 through 74-49,107 and amendments thereto are subject to the provisions of section 83 and amendments thereto.
New Sec. 93. The provisions of article 49a of chapter 74 of the Kansas Statutes An-
notated are subject to the provisions of section 83 and amendments thereto.'';
And by renumbering sections accordingly;
Also on page 125, in line 42, by striking ``and'' the first time it appears and inserting a
comma; also in line 42, after ``74-4985'' by inserting ``, 74-4998b, 74-4998c, 74-4998g, 74-
49,107 and 74-49a133''; also in line 42, by striking ``1996'' and inserting ``1997'';
On page 126, in line 5, by striking ``and'' and inserting a comma; also in line 5, after ``74-
4965a'' by inserting ``, 74-4992 and 74-49,105'';
On page 1, in the title, in line 16, by striking ``and'' the first time it appears and inserting
a comma; also in line 16, after ``74-4985'' by inserting ``, 74-4998b, 74-4998c, 74-4998g and
74-49,107''; also in line 16, by striking ``1996'' and inserting ``1997''; in line 22, by striking
``and'' the first time it appears and inserting a comma; also in line 22, after ``74-4965a'' by
inserting ``, 74-4992 and 74-49,105''; in line 24, by striking ``and'' the first time it appears
and inserting a comma; also in line 24, after ``74-4981'' by inserting ``and 74-49a133''; also
in line 24 by striking ``1996'' and inserting ``1997''; and the bill be passed as amended.
On motion of Senator Emert the Senate adjourned until 2:30 p.m., Wednesday, February
4, 1998.