The Senate was called to order by Vice-President Alicia Salisbury.
The roll was called with thirty-nine senators present.
Senator Corbin was excused.
Invocation by Chaplain Fred S. Hollomon:
Heavenly Father,
Looking at the Senate Calendar, we are confronted once again with hundreds of
bills and resolutions which we are expected to keep up with. Just to get through the
``ations'' is a real challenge:
There are lots of appropriations
With appropriate limitations,
Plus employee communication
And water conservation.
There's non-driver identification
And some ethics violations,
Articles of Incorporation
And workman's compensation.
We deal with organization
Exemption of exploration,
There's beverage intoxication
And provider regulation.
Then of course there's education
Not to mention much taxation,
All of which adds up to. . . .
A lot of legislation.
Help us, Lord, not to succumb
To fatigue and aggravation,
We'd like to end the session
Feeling like a celebration.
I pray in the Name of Christ,
AMEN
REFERENCE OF BILLS AND CONCURRENT RESOLUTIONS
The following bills were referred to Committees as indicated:
Agriculture: HB 2738, 2761.
Commerce: SB 675.
Judiciary: HB 2531.
Transportation and Tourism: HB 2686.
Ways and Means: SB 674.
CHANGE OF REFERENCE
The President withdrew SB 538, 539 from the Committee on Ways and Means, and
rereferred the bills to the Committee on Judiciary.
The President withdrew SB 622 from the Committee on Public Health and Welfare, and
referred the bill to the Committee on Ways and Means.
The President withdrew SB 593 from the Committee on Judiciary, and referred the bill
to the Committee on Ways and Means.
The President withdrew SB 218, 226, 392, 574 from the Committee on Financial In-
stitutions and Insurance, and referred the bills to the Committee on Ways and Means.
MESSAGE FROM THE HOUSE
Announcing passage of HB2723, 2737.
Also, passage of SB 500, as amended.
INTRODUCTION OF HOUSE BILLS AND CONCURRENT RESOLUTIONS
HB2723, 2737 were thereupon introduced and read by title.
INTRODUCTION OF ORIGINAL MOTIONS AND SENATE RESOLUTIONS
A RESOLUTION honoring women in military service to our country.
WHEREAS, Nearly two million women, including more than 10,000 Kansans, have
served in the United States Armed Forces; and
WHEREAS, The contributions of women in military service should be recognized by all
Kansans; and
WHEREAS, The United States Congress has authorized the construction of the Women
in Military Service for America Memorial, located at the ceremonial entrance to Arlington
National Cemetery, across the Potomac River from the Lincoln Memorial in our nation's
capitol city; and
WHEREAS, The purpose of the memorial is to recognize all women who have served
in the armed forces--past, present, and future; document the experiences of women and
tell their stories of service, sacrifice, and achievement; make their contributions a visible
part of American history and illustrate their partnership with men in the defense of the
nation. Whether on the ships of the Navy and Coast Guard or in the amphibious forces of
the Marine Corps, protecting our skies in the Air Force or our cities and farms in the Army,
in every conflict, on active duty or in the Reserves and the National Guard, they have
ensured the freedom that we now enjoy; and
WHEREAS, Women veterans, from World War II, the Korean War, the Vietnam War
and Operation Desert Storm, and female active duty personnel will be visiting the Capitol
on February 18, 1998: Now, therefore,
Be it resolved by the Senate of the State of Kansas: That we take this opportunity to
honor the Kansas women veterans who have served our country in the various branches of
the military, and who are deserving of a public memorial honoring their service; and
Be it further resolved: That the Secretary of the Senate be directed to send an enrolled
copy of this resolution to the Women in Military Service for America Memorial Foundation,
Inc., Department 560, Washington, D.C. 20042-0560 and to provide 10 enrolled copies to
Senator Oleen.
On emergency motion of Senator Oleen, SR 1816 was adopted unanimously.
Senator Oleen introduced Arliene Mathews representing WWII, Women's Army Corp,
Tescott; Thurma Smith, Korean Conflict, Women's Army Corp, Wichita (uniform modeled
by Paula Nelson); Bernice Boerstler, VietNam Era, Army Nurse's Corp, Caldwell; Teresa
Compton, VietNam Era, Navy Intelligence, Fredonia; M/SGT Jean Robinson, Desert
Storm/190th Air Refueling Group, Forbes Field, Kansas Air National Guard, Topeka; Capt.
Rhonda Reasoner, Bosnia, Army Reserves, Wichita; Natalie McCreary, Korea, U.S. Air
Force, Wellington; Capt. Vanessa Collier, Ft. Riley; Lt. Col. Rhonda Arnold, 22nd Air
Refueling Wing, McConnell AFB, Wichita; Lt. Col. Pam Simonitch, 184th Bomb Wing,
Kansas Air National Guard, McConnell AFB, Wichita; Capt. R. H. Powers, 931st Air Re-
fueling Group (Air Force Reserves), McConnell AFB, Wichita; Lt. Col Joy Moser, Head-
quarters, Kansas Army National Guard, from Adjutant General's Office; and a group from
Veteran's Affairs Medical and Regional Office, Wichita. Also recognized was Adjutant Gen-
eral James Rueger.
REPORTS OF STANDING COMMITTEES
Committee on Financial Institutions and Insurance recommends SB 490 be
amended on page 8, by striking lines 14 to 20, inclusive and inserting the following subsec-
tion:
``(2) With respect to a consumer credit sale other than open end credit not involving
the sale of a motor vehicle, the seller may contract for and receive a finance charge not
exceeding that agreed to by the consumer.'';
Also on page 8, by striking all of line 43;
On page 9, by striking lines 1 to 6, inclusive; following line 28, by inserting the following
subsection:
``(3) With respect to a consumer credit sale made pursuant to open end credit, not
involving the sale of a motor vehicle, which is governed under K.S.A. 16a-2-401 and amend-
ments thereto, the parties may contract for and the seller or holder may receive a finance
charge in an amount not exceeding the rate or rates specified in the agreement governing
the account.'';
Also on page 9, by striking lines 29 to 43, inclusive;
On page 10, by striking lines 1 to 12, inclusive; also on page 10, following line 12, by
inserting a section as follows:
``Sec. 4. K.S.A. 16a-2-401 is hereby amended to read as follows: 16a-2-401. (1) With
respect to a consumer loan and a consumer credit sale involving a motor vehicle, including
a loan pursuant to open end credit, a lender may contract for and receive a finance charge,
calculated according to the actuarial method, not exceeding 18% per year on the unpaid balance of the amount financed not exceeding $1,000 and 14.45% per year on that portion of the unpaid balance in excess of $1,000.
(2) As an alternative to the rates set forth in subsection (1), with respect to a supervised
loan and consumer credit sale involving a motor vehicle made under a license issued by the
administrator, including a loan pursuant to open end credit, a supervised lender may contract
for and receive a finance charge, calculated according to the actuarial method, not exceeding
the equivalent of the greater of either of the following:
The total of: (a) Thirty-six percent per year on that part of the unpaid balance of the
amount financed which is $300 or less; and
(b) twenty-one percent per year on that part of the unpaid balance of the amount
financed which is more than $300, but does not exceed $1,000; and
(c) fourteen and forty-five hundredths percent per year on that portion of the unpaid
balance of the amount financed which is more than $1,000; or
(d) eighteen percent per year on the unpaid balance of the amount financed.
(3) This section does not limit or restrict the manner of calculating the finance charge,
whether by way of add-on, discount, or otherwise, so long as the rate of the finance charge
does not exceed that permitted by this section. The finance charge may be contracted for
and earned at the single annual percentage rate that would earn the same finance charge
as the graduated rates when the debt is paid according to the agreed terms and the calcu-
lations are made according to the actuarial method.
(4) The term of a loan or consumer credit sale involving a motor vehicle for the purposes
of this section commences on the date the loan or consumer credit sale is made.
(5) Subject to classifications and differentiations the lender may reasonably establish,
the lender may make the same finance charge on all amounts financed within a specified
range. A finance charge so made does not violate subsections (1) and (2) if:
(a) When applied to the median amount within each range, it does not exceed the
maximum amount permitted in subsections (1) and (2); and
(b) when applied to the lowest amount within each range, it does not produce a rate of
finance charge exceeding the rate calculated according to paragraph (a) by more than 8%
of the rate calculated according to paragraph (a).
(6) Notwithstanding subsections (1) and (2), a lender may contract for and receive a
minimum finance charge of not more than $5 when the amount financed does not exceed
$75, or not more than $7.50 when the amount financed exceeds $75.
(7) This section shall not apply to a loan secured by an interest in land the interest rate
of which is governed by subsection (b) of K.S.A. 16-207, and amendments thereto, unless
made subject hereto by agreement.
(8) Except for paragraph (a) of subsection 9, this section shall not apply to a loan secured
by an interest in land subordinate to a prior mortgage and held by a lender other than the
lender of the first mortgage, the interest rate of which is governed by subsection (b) or (h)
of K.S.A. 16-207, and amendments thereto, unless made subject hereto by agreement.
(9) (a) In addition to the applicable finance charge or rate of interest prescribed by law,
a supervised lender may contract for and receive a nonrefundable origination fee not to
exceed 3% of the amount financed on any consumer loan secured by an interest in land,
which fee shall be a nonrefundable, prepaid finance charge.
(b) In addition to the applicable finance charge permitted for consumer credit sales
other than sales by way of open end credit or for consumer loans not secured by an interest
in land, a creditor may contract for and receive, in connection with any such sale or loan, a
nonrefundable origination fee in an amount not to exceed the lesser of 2% of the amount
financed or $100, which fee shall be a nonrefundable, prepaid finance charge.'';
Also on page 10, in line 13, before ``K.S.A.'' by inserting ``K.S.A. 16a-2-401 and'';
And by renumbering the sections accordingly;
In the title, in line 9, after ``amending'' by inserting ``K.S.A. 16a-2-401 and''; and the bill
be passed as amended.
Committee on Public Health and Welfare recommends SB 434 be amended on page
1, following line 13, by inserting the following:
``Section 1. K.S.A. 1997 Supp. 65-6803 is hereby amended to read as follows: 65-6803.
(a) There is hereby created a health care data governing board.
(b) The board shall consist of nine members appointed as follows: One member shall
be appointed by the Kansas medical society, one member shall be appointed by the Kansas
hospital association, one member shall be appointed by the executive vice chancellor of the
university of Kansas school of medicine, one member who is a licensed professional nurse
appointed by the Kansas state nurses association, one member representing health care
insurers or other commercial payors shall be appointed by the governor, one member rep-
resenting adult care homes shall be appointed by the governor, one member representing
the Kansas health institute, one member appointed by the state board of regents repre-
senting the health services research community and one member representing consumers
of health care shall be appointed by the governor. The secretary of health and environment,
or the designee of the secretary, shall be a nonvoting member who shall serve as chairperson
of the board. The secretary of social and rehabilitation services and the insurance commis-
sioner, or their designees, shall be nonvoting members of the board. Board members and
task force members shall not be paid compensation, subsistence allowances, mileage or other
expenses as otherwise may be authorized by law for attending meetings, or subcommittee
meetings, of the board. The members appointed to the board shall serve for three-year
terms, or until their successors are appointed and qualified.
(c) The chairperson of the health care data governing board may appoint a task force
or task forces of interested citizens and providers of health care for the purpose of studying
technical issues relating to the collection of health care data. At least one member of the
health care data governing board shall be a member of any task force appointed under this
subsection.
(d) The board shall meet at least quarterly and at such other times deemed necessary
by the chairperson.
(e) The board shall develop policy regarding the collection of health care data and
procedures for ensuring the confidentiality and security of these data.'';
And by renumbering sections accordingly;
Also on page 1, in line 41, after ``Supp.'' by inserting ``65-6803 and''; also in line 41, by
striking ``is'' and inserting ``are'';
In the title, in line 10, after ``Supp.'' by inserting ``65-6803 and''; in line 11, by striking
``section'' and inserting ``sections''; and the bill be passed as amended.
Committee on Ways and Means recommends SB 530; HB 2613 be passed.
REPORT ON ENGROSSED BILLS
SB 16 reported correctly engrossed February 17, 1998.
Also, SB 14, 15 correctly re-engrossed February 17, 1998.
On motion of Senator Emert the Senate adjourned until 2:30 p.m., Thursday, February
19, 1998.