The Senate was called to order by President Dick Bond.
The roll was called with thirty-nine senators present.
Senator Oleen was excused.
Invocation by Chaplain Fred S. Hollomon:
Heavenly Father,
It's time for the old formula:
Fatigue + Frustration = ANGER,
You have given us advice concerning anger in your Book.
James said to be slow to get angry and Paul said to get rid of it quickly. Solomon
said that a soft response repels anger while angry words make things worse. Solomon
also said that the one who controls his spirit is stronger than the warrior who captures
a city.
The best example we have in how to deal with anger is Your Son. Jesus got angry
but not with anyone who attacked him personally. He got angry only at those who
took advantage of the poor and the weak and the helpless.
O God, help us to take Paul's advice and ``Be angry and sin not.''
I pray in the Name of Christ, AMEN
INTRODUCTION OF BILLS AND CONCURRENT RESOLUTIONS
The following bills were introduced and read by title:
SB 686, An act concerning certain refunds of rates and charges received for reimburse-
ment of ad valorem taxes in connection with the sale of natural gas; providing procedures
therefor, by Committee on Ways and Means.
SB 687, An act concerning salaries and compensation for state officers and employees;
amending K.S.A. 75-3101, 75-3103, 75-3104, 75-3108, 75-3110 and 75-3111a and K.S.A.
1997 Supp. 40-102, 46-137a and 46-137b and repealing the existing sections, by Committee
on Ways and Means.
REFERENCE OF BILLS AND CONCURRENT RESOLUTIONS
The following bills were referred to Committees as indicated:
Energy and Natural Resources: SB 685.
Federal and State Affairs: SB 684.
Judiciary: HB 2463.
CHANGE OF REFERENCE
The President withdrew SB 648 from the calendar under the heading of General Orders,
and rereferred the bill to the Committee on Ways and Means.
MESSAGE FROM THE GOVERNOR
SB 300 approved on March 11, 1998.
COMMUNICATIONS FROM STATE OFFICERS
STATE OF MAINE
HOUSE OF REPRESENTATIVES
March 2, 1998
Joseph W. Mayo, Clerk of the House, House of Representatives, Augusta, Maine, sub-
mitted an original signed copy of H.P. 1568, Joint Resolution memorializing the Congress
of the United States to remove tobacco subsidies.
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.
MESSAGE FROM THE HOUSE
Announcing passage of HB 2715, 2739; Substitute HB 2972.
Also, passage ofSB 67, as amended; Senate Substitute 139 as amended by House Substitute for Senate Substitute 139; SB 404, as amended, 416, as amended, 462, as amended, 470, as amended.
INTRODUCTION OF HOUSE BILLS AND CONCURRENT RESOLUTIONS
HB 2715, 2739; Substitute HB 2972 were thereupon introduced and read by title.
CONSIDERATION OF MOTIONS TO CONCUR OR NONCONCUR
Senator Clark moved the Senate Concur in house amendments to SB 220.
A call of the Senate was requested by the showing of five hands.
On roll call, the vote was: Yeas 18, nays 21, present and passing 0; absent or not voting
1.
The motion to concur failed and SB 220 remains in conference.
On motion of Senator Hensley the call of the Senate was lifted.
REPORTS OF STANDING COMMITTEES
Committee on Education recommends HCR 5029 be adopted.
Committee on Elections and Local Government recommends HB 2727, 2769 be
passed and, because the committee is of the opinion that the bills are of a noncontroversial
nature, be placed on the consent calendar.
Also SB 450 be amended by adoption of the amendments recommended by the Senate
Committee on Elections and Local Government as reported in the Journal of the Senate
on February 17, 1998, and the bill, as printed with amendments by Senate Committee, be
passed as amended.
HB 2685, as amended by House Committee, be amended on page 1, following line 40,
by inserting:
``Sec. 2. K.S.A. 19-3423 is hereby amended to read as follows: 19-3423. (a) Election
commissioners shall procure a seal of office, properly inscribed, and shall authenticate all his official acts therewith. Said commissioner is hereby given of the commissioner with such seal. The commissioner shall have full and complete power and authority over all elections
in the county and to shall see that such elections are conducted according to law.
(b) The election commissioner and assistant election commissioner shall have the general powers of a notary public in the performance of all notarial acts.'';
By renumbering sections accordingly;
On page 2, in line 3, by striking all after the semicolon; following line 3, by inserting:
``(4) an election commissioner or assistant election commissioner; or'';
Also on page 2, in line 4, by striking ``(4)'' and inserting ``(5)''; in line 13, following ``19-
304'' by inserting ``, 19-3423'';
In the title, in line 10, by striking ``county clerks'' and inserting ``certain public officers'';
in line 12, following ``19-304'' by inserting ``, 19-3423''; and the bill be passed as amended.
ORIGINAL MOTION
On emergency motion of Senator Lawrence, HCR 5029, A concurrent resolution me-
morializing the Congress of the United States to assume its fair share of the costs of special
education services by increasing funding to a level more nearly approaching the level au-
thorized by the Individuals with Disabilities Education Act, was adopted by voice vote.
COMMITTEE OF THE WHOLE
On motion of Senator Emert, the Senate resolved itself into Committee of the Whole
Senate for consideration of bills on the calendar under the heading of General Orders with
Senator Praeger in the chair.
On motion of Senator Praeger the following report was adopted:
Recommended thatSB 677; HB 2645, 2761 be passed.
Sub. SB 494 be amended by adoption of the committee report recommending a substi-
tute bill, and the substitute bill be passed.
Also, SB 541, 672; HB 2687 be amended by adoption of the committee amendments,
and the bills be passed as amended.
SB 482 as amended by adoption of the committee amendments on February 27, 1998,
in Committee of the Whole, be amended by motion of Senator Emert on page 2, in line
18, by striking all after the semicolon; in line 19, by striking all before ``or'';
On page 4, in line 6, by striking all after the semicolon; in line 7, by striking all before
``or'';
On page 6, in line 36, by striking all after the semicolon; in line 37, by striking all before
``or'';
On page 8, in line 1, by striking ``criminal justice agency,'';
On page 11, in line 33, by striking all after the semicolon; in line 34, by striking all before
``or'';
On page 13, in line 4, by striking ``criminal justice agency,''; and the bill be passed as
further amended.
The following amendment offered by Senator Ranson to SB 482 was rejected:
On page 3, following line 9, by inserting the following:
``(h) This section shall be part of and supplemental to the Kansas code of procedure for
municipal courts.'';
On page 9, following line 4, by inserting the following:
``(i) This section shall be part of and supplemental to the Kansas code of procedure for
municipal courts.''
SB 444 be amended by adoption of the committee amendments.
The bill be further amended by motion of Senator Tyson on page 2, in line 37, before
``denominational'', by inserting ``bona fide religious,'' and the bill be passed as further
amended.
HB 2249 be amended by adoption of the committee amendments.
Senator Downey moved to amend the bill on page 51, in line 39, by striking ``1,765'' and
inserting ``1,755''; in line 43, by striking ``1,765'' and inserting ``1,755'';
On page 52, in line 14, by striking ``1,765'' and inserting ``1,755''; in line 18, by striking
``1,765'' and inserting ``1,755''; in line 32, by striking ``sum of the''; in line 33, by striking all
after ``district''; by striking all of line 34; in line 35, by striking all before the period; in line
38, by striking ``$3,711'' and inserting ``$3,715'';
On page 53, by striking all of lines 4 through 6; in line 7, by striking ``(d)'' and inserting
``(c)''; in line 37, by striking ``(e)'' and inserting ``(d)'';
On page 54, in line 8, by striking ``1,765'' and inserting ``1,755'';
On page 55, in line 2, by striking ``300-1,764'' and inserting ``300-1,754''; in line 17, by
striking ``1,765'' and inserting ``1,755''; in line 20, by striking ``1,765'' and inserting ``1,755'';
by striking all of lines 28 through 36;
By renumbering sections 34 and 35 as sections 33 and 34, respectively.
Upon the showing of five hands, a roll call vote was requested.
On roll call, the vote was: Yeas 15, nays 24, present and passing 0; absent or not voting
1.
Senator Lee moved to amend the bill on page 12, in line 19, after the period by inserting
``On and after July 1, 2000,''; in line 35, before ``K.S.A.'' by inserting ``On and after July 1,
2000,'';
On page 13, in line 2, before ``K.S.A.'' by inserting ``On and after July 1, 2000,''; by striking
all in lines 9 through 43;
On page 14, by striking all in lines 1 through 8 and inserting the following:
``Sec. 4. On and after July 1, 2000, K.S.A. 79-1542, as amended by section 19, is hereby
amended to read as follows: 79-1542. As used in this act unless the context otherwise re-
quires:
(a) Any term used in this act shall have the same meaning as when used in a comparable
context in the internal revenue code. Any reference in this act to the ``internal revenue code''
shall mean the provisions of the United States internal revenue code of 1986, as such code
exists on December 31, 1997 1999. Any reference in this act to a specific provision of the
internal revenue code shall be to such provision as it exists on December 31, 1997 1999.
(b) ``Deemed executor'' includes any person in actual or constructive possession of any
property of the decedent.
(c) ``Director'' means the director of taxation.
(d) ``Distributee'' means a beneficiary, legatee, devisee, heir, next of kin, grantee, donee, vendee, joint tenant or any other successor in interest, whether outright or in trust.
(e) ``Distributive share'' or ``distributive shares'' means the share or shares of the dis- tributive estate passing to a distributee or distributees.
(f) (d) ``Domicile'' refers to that place where a person resides, has an intention to remain
and to which they intend to return following any absence.
(g) (e) ``Estate'' and ``property'' shall mean the real, personal and mixed property or
interest therein of the testator, intestate, grantor, bargainor, vendor or donor which shall
pass or be transferred to legatees, devisees, heirs, next of kin, grantees, donees, vendees, or
successors and shall include all personal property within or without the state.
(h) (f) ``Executor'' and ``administrator'' mean the duly appointed, qualified and acting
executor or administrator of the decedent in this state.
(i) (g) ``Nonresident decedent'' means a decedent who was not a resident decedent at
the time of death.
(j) (h) ``Personal representative'' means the executor, administrator or deemed executor
of the decedent.
(k) (i) ``Resident decedent'' means a decedent who was domiciled in this state at the
time of death.
(l) (j) ``Secretary'' means the secretary of revenue, or the secretary's designee.
(m) (k) ``Tax'' includes tax, penalty and interest, unless the context of a particular section
otherwise requires.
(n) (l) ``Transfer'' shall include the passing of property or any interest therein in pos-
session or enjoyment, present or future, by inheritance, descent, devise, succession, bequest,
grant, deed, bargain, sale, gift or appointment in the manner herein prescribed.'';
Also on page 14, in line 9, before ``K.S.A.'' by inserting ``On and after July 1, 2000,'';
On page 17, in line 10, before ``K.S.A.'' by inserting ``On and after July 1, 2000,'';
On page 19, in line 29, before ``K.S.A.'' by inserting ``On and after July 1, 2000,''; in line
38, before ``K.S.A.'' by inserting ``On and after July 1, 2000,'';
On page 20, in line 30, before ``K.S.A.'' by inserting ``On and after July 1, 2000,'';
On page 21, in line 10, before ``K.S.A.'' by inserting ``On and after July 1, 2000,'';
On page 22, in line 37, before ``K.S.A.'' by inserting ``On and after July 1, 2000,'';
On page 23, in line 10, before ``K.S.A. by inserting ``On and after July 1, 2000,''; in line
32, before ``K.S.A.'' by inserting ``On and after July 1, 2000,'';
On page 24, in line 15, before ``K.S.A.'' by inserting ``On and after July 1, 2000,''; in line
24, before ``K.S.A.'' by inserting ``On and after July 1, 2000,'';
On page 26, in line 17, by striking ``1998'' and inserting ``2000''; in line 20, by striking
``1998'' and inserting ``2000''; after line 20, by inserting the following:
``Sec. 18. On and after October 1, 1998, K.S.A. 79-1537 is hereby amended to read as
follows: 79-1537. (a) A tax is hereby imposed on the privilege of succeeding to the ownership
of any property, corporeal or incorporeal, and any interest therein within the jurisdiction of
this state.
(b) Distributees of estates shall be classified as follows:
(1) Class A shall consist of the lineal ancestors, lineal descendants, step-parents, step-
children, adopted children, lineal descendants of any adopted child or step-child, the spouse
or surviving spouse of a son or daughter, or the spouse or surviving spouse of an adopted
child or step-child of the decedent. In the case of an adopted child or step-child, a spouse
or surviving spouse of an adopted child or step-child or the lineal descendant of an adopted
child or step-child of the decedent, such person shall file with the department of revenue
an affidavit setting forth the relationship of such person to the decedent. Such affidavit shall
be sufficient proof of the adoptive or step-child relationship in question, and the department,
or any officer or employee thereof, shall not require any additional proof of such relationship.
As used in this paragraph, ``step-child'' means a child of a spouse or former spouse of the
decedent.
(2) Class B shall consist of the brothers and sisters of the decedent.
(3) Class C shall consist of relatives of all degrees of consanguinity, except those included
in classes A and B, and shall also include strangers in the blood of the decedent.
Notwithstanding the foregoing provisions of this subsection, with respect to qualified
terminable interest property includable in the decedent's estate under K.S.A. 79-1557a, and
amendments thereto, the relationship of the distributees of such property shall be deter-
mined by their relationship to the individual whose estate made an election with respect to
such property pursuant to subsection (b)(3) of K.S.A. 79-1537b, and amendments thereto.
(c) (1) From the value of the shares of the distributable estate, as ascertained under
the provisions of this act and succeeded to by the several distributees, deductions shall be
allowed as follows: (A) To each member of class A, $30,000 $1,300,000; and (B) to each
member of class B, $5,000 $100,000.
(2) The tax herein provided for shall be charged upon the value of the shares of the
distributable estate after deduction of the amounts herein provided, except that when one
or more of the shares of the distributable estate shall consist of property within and property
without the state, only such percentage of the deductions above named shall be allowed in
the percentage that the Kansas share bears to the total shares of the distributee.
(d) The tax herein imposed shall be an amount equal to a percentage of the value of
the shares of the distributable estate of the decedent succeeded to by the distributees
thereof, reduced by any deductions authorized pursuant to subsection (c):
(1) Upon the value of shares succeeded to by members of class A reduced by such
deductions, the following rates of tax are hereby imposed: On the first $25,000, or fraction
thereof, 1%; on the second $25,000, or fraction thereof, 2%; on the next $50,000, or fraction
thereof, 3%; on the next $400,000, or fraction thereof, 4%; on all over $500,000, 5%;
(2) upon the value of shares succeeded to by members of class B reduced by such
deductions, the following rates of tax are hereby imposed: On the first $25,000, or fraction
thereof, 3%; on the second $25,000, or fraction thereof, 5%; on the next $50,000, or fraction
thereof, 71/2%; on the next $400,000, or fraction thereof, 10%; on all over $500,000, 121/2%;
and
(3) upon the value of shares succeeded to by members of class C, the following rates
of taxes are hereby imposed: On any amount up to $100,000, 10%; on any amount in excess
of $100,000 and up to $200,000, 12%; on all sums in excess of $200,000, 15%.
Sec. 19. On and after October 1, 1998, K.S.A. 79-1542 is hereby amended to read as
follows: 79-1542. As used in this act unless the context otherwise requires:
(a) Any term used in this act shall have the same meaning as when used in a comparable
context in the internal revenue code. Any reference in this act to the ``internal revenue code''
shall mean the provisions of the United States internal revenue code of 1986, as such code
exists on December 31, 1992 1997. Any reference in this act to a specific provision of the
internal revenue code shall be to such provision as it exists on December 31, 1992 1997.
(b) ``Deemed executor'' includes any person in actual or constructive possession of any
property of the decedent.
(c) ``Director'' means the director of taxation.
(d) ``Distributee'' means a beneficiary, legatee, devisee, heir, next of kin, grantee, donee,
vendee, joint tenant or any other successor in interest, whether outright or in trust.
(e) ``Distributive share'' or ``distributive shares'' means the share or shares of the dis-
tributive estate passing to a distributee or distributees.
(f) ``Domicile'' refers to that place where a person resides, has an intention to remain
and to which they intend to return following any absence.
(g) ``Estate'' and ``property'' shall mean the real, personal and mixed property or interest
therein of the testator, intestate, grantor, bargainor, vendor or donor which shall pass or be
transferred to legatees, devisees, heirs, next of kin, grantees, donees, vendees, or successors
and shall include all personal property within or without the state.
(h) ``Executor'' and ``administrator'' mean the duly appointed, qualified and acting ex-
ecutor or administrator of the decedent in this state.
(i) ``Nonresident decedent'' means a decedent who was not a resident decedent at the
time of death.
(j) ``Personal representative'' means the executor, administrator or deemed executor of
the decedent.
(k) ``Resident decedent'' means a decedent who was domiciled in this state at the time
of death.
(l) ``Secretary'' means the secretary of revenue, or the secretary's designee.
(m) ``Tax'' includes tax, penalty and interest, unless the context of a particular section
otherwise requires.
(n) ``Transfer'' shall include the passing of property or any interest therein in possession
or enjoyment, present or future, by inheritance, descent, devise, succession, bequest, grant,
deed, bargain, sale, gift or appointment in the manner herein prescribed.'';
On page 55, in line 37, by striking all after the second comma; by striking all in lines 38
through 43;
On page 56, by striking all in lines 1 and 2; in line 3, before ``32,110'' by inserting ``79-'';
after line 6 by inserting the following:
``Sec. 36. On and after October 1, 1998, K.S.A. 79-1537 and 79-1542 are hereby re-
pealed.
Sec. 37. On and after July 1, 2000, K.S.A. 79-1537, as amended by section 18, 79-1537b,
79-1537c, 79-1537e, 79-1537f, 79-1538, 79-1538a, 79-1539, 79-1540, 79-1541, 79-1541a,
79-1541b, 79-1542, as amended by section 19, 79-1542a, 79-1543, 79-1545, 79-1547, 79-
1548, 79-1549, 79-1550, 79-1551, 79-1552, 79-1553, 79-1554, 79-1555, 79-1556, 79-1557,
79-1557a, 79-1559, 79-1560, 79-1561, 79-1562, 79-1563, 79-1563a, 79-1564, 79-1565, 79-
1566, 79-1567, 79-1567a, 79-1568, 79-1569, 79-1570, 79-1571, 79-1572, 79-1573, 79-1574,
79-1575, 79-1576, 79-1579, 79-1580, 79-1584, 79-1584a, 79-1584b, 79-1584c, 79-1585,
79-1586 and 79-1587 are hereby repealed.'';
By renumbering existing sections accordingly;
In the title, in line 21, before ``79-1541a'' by inserting ``79-1537''; in line 22, before ``79-
1564'' by inserting ``79-1542, as amended by section 19,''; in line 27, after the comma by
inserting ``as amended by section 18,''.
Upon the showing of five hands, a roll call vote was requested.
On roll call, the vote was: Yeas 13, nays 26, present and passing 0; absent or not voting
1.
Senator Hensley moved to amend the bill on page 28, in line 10, by striking ``$2,300'' and
inserting ``$2,100''; in line 18, by striking ``$2,300'' and inserting ``$2,100''; after line 27, by
inserting the following:
``New Sec. 21. (a) There shall be allowed as a credit against the tax liability of a resident
individual imposed under the Kansas income tax act an amount equal to 10% for tax year
1998, and all tax years thereafter, of the amount of the earned income credit allowed against
such taxpayer's federal income tax liability pursuant to section 32 of the federal internal
revenue code for the taxable year in which such credit was claimed against the taxpayer's
federal income tax liability.
(b) If the amount of the credit allowed by subsection (a) exceeds the taxpayer's income
tax liability imposed under the Kansas income tax act, such excess amount shall be refunded
to the taxpayer.
(c) The provisions of this section shall be applicable to all taxable years commencing
after December 31, 1997.
Sec. 22. K.S.A. 79-32,117 is hereby amended to read as follows: 79-32,117. (a) The
Kansas adjusted gross income of an individual means such individual's federal adjusted gross
income for the taxable year, with the modifications specified in this section.
(b) There shall be added to federal adjusted gross income:
(i) Interest income less any related expenses directly incurred in the purchase of state
or political subdivision obligations, to the extent that the same is not included in federal
adjusted gross income, on obligations of any state or political subdivision thereof, but to the
extent that interest income on obligations of this state or a political subdivision thereof issued
prior to January 1, 1988, is specifically exempt from income tax under the laws of this state
authorizing the issuance of such obligations, it shall be excluded from computation of Kansas
adjusted gross income whether or not included in federal adjusted gross income. Interest
income on obligations of this state or a political subdivision thereof issued after December
31, 1987, shall be excluded from computation of Kansas adjusted gross income whether or
not included in federal adjusted gross income.
(ii) Taxes on or measured by income or fees or payments in lieu of income taxes imposed
by this state or any other taxing jurisdiction to the extent deductible in determining federal
adjusted gross income and not credited against federal income tax. This paragraph shall not
apply to taxes imposed under the provisions of K.S.A. 79-1107 or 79-1108, and amendments
thereto, for privilege tax year 1995, and all such years thereafter.
(iii) The federal net operating loss deduction.
(iv) Federal income tax refunds received by the taxpayer if the deduction of the taxes
being refunded resulted in a tax benefit for Kansas income tax purposes during a prior
taxable year. Such refunds shall be included in income in the year actually received regard-
less of the method of accounting used by the taxpayer. For purposes hereof, a tax benefit
shall be deemed to have resulted if the amount of the tax had been deducted in determining
income subject to a Kansas income tax for a prior year regardless of the rate of taxation
applied in such prior year to the Kansas taxable income, but only that portion of the refund
shall be included as bears the same proportion to the total refund received as the federal
taxes deducted in the year to which such refund is attributable bears to the total federal
income taxes paid for such year. For purposes of the foregoing sentence, federal taxes shall
be considered to have been deducted only to the extent such deduction does not reduce
Kansas taxable income below zero.
(v) The amount of any depreciation deduction or business expense deduction claimed
on the taxpayer's federal income tax return for any capital expenditure in making any build-
ing or facility accessible to the handicapped, for which expenditure the taxpayer claimed
the credit allowed by K.S.A. 79-32,177, and amendments thereto.
(vi) Any amount of designated employee contributions picked up by an employer pur-
suant to K.S.A. 12-5005, 20-2603, 74-4919 and 74-4965, and amendments to such sections.
(vii) The amount of any charitable contribution made to the extent the same is claimed
as the basis for the credit allowed pursuant to K.S.A. 79-32,196, and amendments thereto.
(viii) The amount of any ad valorem taxes and assessments paid and the amount of any costs incurred for habitat management or construction and maintenance of improvements on real property, claimed for deduction in determining federal adjusted gross income, to the extent the same is claimed as the basis for any credit allowed pursuant to K.S.A. 79-32,203 and amendments thereto.
(c) There shall be subtracted from federal adjusted gross income:
(i) Interest or dividend income on obligations or securities of any authority, commission
or instrumentality of the United States and its possessions less any related expenses directly
incurred in the purchase of such obligations or securities, to the extent included in federal
adjusted gross income but exempt from state income taxes under the laws of the United
States.
(ii) Any amounts received which are included in federal adjusted gross income but which
are specifically exempt from Kansas income taxation under the laws of the state of Kansas.
(iii) The portion of any gain or loss from the sale or other disposition of property having
a higher adjusted basis for Kansas income tax purposes than for federal income tax purposes
on the date such property was sold or disposed of in a transaction in which gain or loss was
recognized for purposes of federal income tax that does not exceed such difference in basis,
but if a gain is considered a long-term capital gain for federal income tax purposes, the
modification shall be limited to that portion of such gain which is included in federal adjusted
gross income.
(iv) The amount necessary to prevent the taxation under this act of any annuity or other
amount of income or gain which was properly included in income or gain and was taxed
under the laws of this state for a taxable year prior to the effective date of this act, as
amended, to the taxpayer, or to a decedent by reason of whose death the taxpayer acquired
the right to receive the income or gain, or to a trust or estate from which the taxpayer
received the income or gain.
(v) The amount of any refund or credit for overpayment of taxes on or measured by
income or fees or payments in lieu of income taxes imposed by this state, or any taxing
jurisdiction, to the extent included in gross income for federal income tax purposes.
(vi) Accumulation distributions received by a taxpayer as a beneficiary of a trust to the
extent that the same are included in federal adjusted gross income.
(vii) Amounts received as annuities under the federal civil service retirement system
from the civil service retirement and disability fund and other amounts received as retire-
ment benefits in whatever form which were earned for being employed by the federal
government or for service in the armed forces of the United States.
(viii) Amounts received by retired railroad employees as a supplemental annuity under
the provisions of 45 U.S.C. 228b (a) and 228c (a)(1) et seq.
(ix) Amounts received by retired employees of a city and by retired employees of any
board of such city as retirement allowances pursuant to K.S.A. 13-14,106, and amendments
thereto, or pursuant to any charter ordinance exempting a city from the provisions of K.S.A.
13-14,106, and amendments thereto.
(x) For taxable years beginning after December 31, 1976, the amount of the federal
tentative jobs tax credit disallowance under the provisions of 26 U.S.C. 280 C. For taxable
years ending after December 31, 1978, the amount of the targeted jobs tax credit and work
incentive credit disallowances under 26 U.S.C. 280 C.
(xi) For taxable years beginning after December 31, 1986, dividend income on stock
issued by Kansas Venture Capital, Inc.
(xii) For taxable years beginning after December 31, 1989, amounts received by retired
employees of a board of public utilities as pension and retirement benefits pursuant to K.S.A.
13-1246, 13-1246a and 13-1249 and amendments thereto.
(xiii) For taxable years beginning after December 31, 1993, the amount of income
earned on contributions deposited to an individual development account under K.S.A. 79-
32,117h, and amendments thereto.
(xiv) For all taxable years commencing after December 31, 1996, that portion of any
income of a bank organized under the laws of this state or any other state, a national banking
association organized under the laws of the United States, an association organized under
the savings and loan code of this state or any other state, or a federal savings association
organized under the laws of the United States, for which an election as an S corporation
under subchapter S of the federal internal revenue code is in effect, which accrues to the
taxpayer who is a stockholder of such corporation and which is not distributed to the stock-
holders as dividends of the corporation.
(xv) For all taxable years commencing after December 31, 1997, the amount, not to exceed $2,000, of contributions to an education savings account pursuant to section 21.
(d) There shall be added to or subtracted from federal adjusted gross income the tax-
payer's share, as beneficiary of an estate or trust, of the Kansas fiduciary adjustment deter-
mined under K.S.A. 79-32,135, and amendments thereto.
(e) The amount of modifications required to be made under this section by a partner
which relates to items of income, gain, loss, deduction or credit of a partnership shall be
determined under K.S.A. 79-32,131, and amendments thereto, to the extent that such items
affect federal adjusted gross income of the partner.
Sec. 23. K.S.A. 79-32,117h is hereby amended to read as follows: 79-32,117h. (a) This
section may be cited as the individual development account act.
(b) For the purposes of this section:
(1) ``Account holder'' means the individual on whose behalf the individual development
account is established.
(2) ``Dependent child'' means any person under the age of 21 years or any person who
is legally entitled or subject to a court order for the provision of proper and necessary
subsistence and education, and who is not emancipated, married or a member of the armed
forces of the United States.
(3) ``Individual development account'' means a custodial account established or organ-
ized to pay for K-12 education expenses of the account holder.
(4) ``Custodian'' means a chartered state bank or trust company authorized to act as a
fiduciary, a national banking association or savings and loan association authorized to act as
a fiduciary, or an insurance company or a credit union and shall include any other qualified
financial custodian as defined by rules and regulations adopted by the secretary of revenue.
(c) (1) For taxable years beginning after December 31, 1993, a resident of this state
shall be allowed to deposit contributions to an individual development account. Except as
provided in subsection (c)(8), the amount of deposit for the first taxable year subsequent to
the effective date of this act shall not exceed:
(A) $2,000 for the account holder; or
(B) $2,000 for the account holder and $1,000 for each dependent child of the account
holder.
(2) The maximum allowable amount of deposit for subsequent years shall be increased
annually by a percentage equal to the previous year's increase in the consumer price index
as published annually as soon after December 31 each year as possible by the secretary of
state in the Kansas register. As used in this paragraph (2), ``consumer price index'' means
the twelve-month average of the consumer price index for all urban consumers United States
city average which is published by the United States department of labor.
(3) Income earned on an individual development account shall be exempt from state
income taxation under the Kansas income tax act.
(4) Upon agreement between an employer and employee, an employer may contribute
to the employee's individual development account, subject to the restrictions in subsection
(6)(A).
(5) The individual development account shall be established as a custodial account and
be placed with a custodian.
(6) Individual development account funds may be withdrawn by the account holder at
any time for any purpose, subject to the following restrictions and penalties:
(A) There shall be a distribution penalty for withdrawal of individual development ac-
count funds by the account holder; such penalty shall be 25% of the amount of interest
earned as of the date of withdrawal on the account and shall be remitted by the custodian
to the state and disposed of in the same manner as other penalties imposed under the Kansas
income tax act; and, upon such withdrawal, the interest earned during the tax year in which
withdrawal occurs shall be subject to state income taxation; and
(B) withdrawals shall be permitted without penalty for the purposes for which the in-
dividual development account was created.
(7) Upon the death of the account holder, the account principal, as well as any interest
accumulated thereon, shall be distributed to the decedent's estate and taxed as part of the
estate.
(8) There shall be no limit on the amount of earned income of a dependent child, who
is a recipient of aid to families with dependent children, deposited in an individual devel-
opment account of such dependent child that was created or organized to pay for educational
expenses of such dependent child.
New Sec. 24. (a) This section may be cited as the education savings account act.
(b) For the purposes of this section:
(1) ``Account holder'' means the individual on whose behalf the education savings ac-
count is established.
(2) ``Dependent child'' means any person under the age of 21 years or any person who
is legally entitled or subject to a court order for the provision of proper and necessary
subsistence and education, and who is not emancipated, married or a member of the armed
forces of the United States.
(3) ``Education savings account'' means a custodial account established or organized to
pay for post secondary education expenses of the account holder.
(4) ``Custodian'' means a chartered state bank or trust company authorized to act as a
fiduciary, a national banking association or savings and loan association authorized to act as
a fiduciary, an insurance company or a credit union and shall include any other qualified
financial custodian as defined by rules and regulations adopted by the secretary of revenue.
(c) For taxable years beginning after December 31, 1997, a resident of this state shall
be allowed to deposit contributions to an education savings account. Except as provided in
subsection (c)(8), the amount of deposit for the first taxable year subsequent to the effective
date of this act shall not exceed:
(1) $2,000 for the account holder; or
(2) $2,000 for the account holder and $1,000 for each dependent child of the account
holder.
(3) Income earned on an education savings account shall be exempt from state income
taxation under the Kansas income tax act.
(4) Upon agreement between an employer and employee, an employer may contribute
to the employee's education savings account, subject to the restrictions in subsection (6)(A).
(5) The education savings account shall be established as a custodial account and be
placed with a custodian.
(6) Education savings account funds may be withdrawn by the account holder at any
time for any purpose, subject to the following restrictions and penalties:
(A) There shall be a distribution penalty for withdrawal of education savings account
funds by the account holder; such penalty shall be 25% of the amount of interest earned as
of the date of withdrawal on the account and shall be remitted by the custodian to the state
and disposed of in the same manner as other penalties imposed under the Kansas income
tax act; and, upon such withdrawal, the interest earned during the tax year in which with-
drawal occurs shall be subject to state income taxation; and
(B) withdrawals shall be permitted without penalty for the purposes for which the ed-
ucation savings account was created.
(7) Upon the death of the account holder, the account principal, as well as any interest
accumulated thereon, shall be distributed to the decedent's estate and taxed as part of the
estate.
(8) There shall be no limit on the amount of earned income of a dependent child, who
is a recipient of aid to families with dependent children, deposited in an education savings
account of such dependent child that was created or organized to pay for educational ex-
penses of such dependent child.'';
By renumbering sections accordingly.
On page 36, in line 14, after the comma by inserting ``by any organization exempt from
property taxation pursuant to paragraph Ninth of K.S.A. 79-201, and amendments thereto,'';
in line 25, before the semicolon, by inserting ``, but such tax shall not be levied and collected
upon the gross receipts received from dues charged by any organization exempt from prop-
erty taxation pursuant to paragraph Ninth of K.S.A. 79-201, and amendments thereto'';
On page 49, in line 43, by striking all after ``a'';
On page 50, by striking all in lines 1 and 2 and inserting ``parent-teacher association or
organization, and all sales of tangible personal property by or on behalf of such association
or organization.''; after line 2, by inserting the following:
``Sec. 32. K.S.A. 79-3633 is hereby amended to read as follows: 79-3633. As used in
K.S.A. 79-3620 and 79-3632 to 79-3639 and amendments thereto, unless the context clearly
indicates otherwise:
(a) ``Income'' means the sum of adjusted gross income determined under the Kansas
income tax act, maintenance, support money, cash public assistance and relief (not including relief granted under this act or refunds granted under the provisions of article 45 of chapter 79 of the Kansas Statutes Annotated), the gross amount of any pension or annuity (including all monetary retirement benefits from whatever source derived, including but not limited to railroad retirement benefits, all payments received under the federal social security act and veterans disability pensions), all dividends and interest from whatever source derived not included in adjusted gross income, workmen's compensation and the gross amount of ``loss of time'' insurance. It does not include gifts from nongovernmental sources or surplus food or other relief in kind supplied by a governmental agency.
(b) ``Household'' means a claimant, a claimant and spouse or a claimant and one or more individuals not related as husband and wife and all other persons for whom a personal exemption is claimed who together occupy a common residence.
(c) ``Household income'' means all income received by all persons of a household in a calendar year while members of such household.
(d) ``Claimant'' means a person who has filed a claim for a refund or credit under the
provisions of this act and was, during the entire calendar year preceding the year in which
the claim was filed for relief under this act, domiciled in this state, was a member of a
household having a household, had income of not more than $13,000 $12,500 or $25,000, as the case requires, in the calendar year for which a claim is filed, except that such income amounts in the case of calendar year 1999, and all years thereafter, shall be increased by the product of the amount allowed for the next preceding tax year multiplied by the cost-of- living adjustment determined under section 1 (f)(3) of the federal internal revenue code for the calendar year in which the taxable year commences and was: (1) A person having a
disability; (2) a person other than a person included under (1), who has attained 55 years
of age in the calendar year for which a claim is filed or (3) a person other than a person
included under (1) or (2) having one or more dependent children under 18 years of age
residing at the person's homestead during the calendar year for which a claim is filed.
(e) (d) ``Head of household'' means the person filing a claim under the provisions of
this act.
(f) (e) ``Disability'' means (1) inability to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment which can be expected
to result in death or has lasted or can be expected to last for a continuous period of not less
than 12 months, and an individual shall be determined to be under a disability only if the
physical or mental impairment or impairments are of such severity that the individual is not
only unable to do the individual's previous work but cannot, considering age, education and
work experience, engage in any other kind of substantial gainful work which exists in the
national economy, regardless of whether such work exists in the immediate area in which
the individual lives or whether a specific job vacancy exists for the individual, or whether
the individual would be hired if application was made for work. For purposes of the pre-
ceding sentence (with respect to any individual), ``work which exists in the national economy''
means work which exists in significant numbers either in the region where the individual
lives or in several regions of the country; for purposes of this subsection, a ``physical or
mental impairment'' is an impairment that results from anatomical, physiological or psy-
chological abnormalities which are demonstrable by medically acceptable clinical and lab-
oratory diagnostic techniques; or
(2) blindness and inability by reason of blindness to engage in substantial gainful activity
requiring skills or abilities comparable to those of any gainful activity in which the individual
has previously engaged with some regularity and over a substantial period of time.
(g) (f) ``Blindness'' means central visual acuity of 20/200 or less in the better eye with
the use of a correcting lens. An eye which is accompanied by a limitation in the fields of
vision such that the widest diameter of the visual field subtends an angle no greater than
20 degrees shall be considered for the purpose of this paragraph as having a central visual
acuity of 20/200 or less.
Sec. 33. K.S.A. 79-3635 is hereby amended to read as follows: 79-3635. (a) (1) A claim-
ant shall be entitled to a refund of retailers' sales taxes paid upon food during the calendar
year 1997 1998 and each year thereafter in the amount hereinafter provided. For households having a household income of less than $5,000, a refund in the amount of $40 shall be allowed for the head of household and a refund of $30 shall be allowed for each additional member of the household. For households having a household income of at least $5,000 but less than $10,000, a refund in the amount of $30 shall be allowed for the head of household and a refund of $25 shall be allowed for each additional member of the household. For households having a household income of at least $10,000 but not more than $13,000, a refund in the amount of $20 shall be allowed for the head of household and a refund of $15 shall be allowed for each additional member of the household. There shall be allowed for each member of a household of a claimant having income of $12,500 or such amount adjusted as provided by law, or less, an amount equal to $70. There shall be allowed for each member of a household of a claimant having income of more than $12,500 or such amount adjusted as provided by law, but not more than $25,000 or such amount as adjusted by law, an amount equal to $35. All such claims shall be paid from the sales tax refund fund
upon warrants of the director of accounts and reports pursuant to vouchers approved by
the director of taxation or by a person or persons designated by the director.
(2) As an alternative to the procedure described by paragraph 1, for all taxable years commencing after December 31, 1997, there shall be allowed as a credit against the tax liability of a resident individual imposed under the Kansas income tax act an amount equal to $70 or $35, as the case requires, for each member of a household. If the amount of such tax credit exceeds the claimant's income tax liability for such taxable year, such excess amount shall be refunded to the claimant.
(b) A head of household shall make application for refunds for all members of the same
household upon a common form provided for the making of joint claims. All claims paid to
members of the same household shall be paid as a joint claim by means of a single warrant.
(c) No claim for a refund of taxes under the provisions of K.S.A. 79-3632 et seq. shall
be paid or allowed unless such claim is actually filed with and in the possession of the
department of revenue on or before April 15 of the year next succeeding the year in which
such taxes were paid. The director of taxation may: (1) Extend the time for filing any claim
under the provisions of this act when good cause exists therefor; or (2) accept a claim filed
after the deadline for filing in the case of sickness, absence or disability of the claimant if
such claim has been filed within four years of such deadline.'';
By renumbering existing sections accordingly;
On page 56, in line 3, before ``79-32,119'' by inserting ``79-32,117, 79-32,117h, 79-
32,117i,''; in line 4, after ``373'' by inserting ``, 79-3633, 79-3635'';
In the title, in line 23, before ``79-'' by inserting ``79-32,117, 79-32,117h,''; in line 25, after
``373'' by inserting ``, 79-3633, 79-3635''; in line 34, by striking ``and'' and inserting a comma;
also, in line 34, before the period by inserting ``and 79-32,117i''
March 12, 1998
Upon the showing of five hands, a roll call vote was requested.
On roll call, the vote was: Yeas 13, nays 26, present and passing 0; absent or not voting
1.
Senator Feleciano moved to amend the bill on page 36, in line 25, before the semicolon
by inserting ``, but such tax shall not be levied and collected upon the gross receipts received
from dues charged by any organization exempt from property taxation pursuant to paragraph Eighth of K.S.A. 79-201, and amendments thereto
Upon the showing of five hands, a roll call vote was requested.
On roll call, the vote was: Yeas 13, nays 26, present and passing 0; absent or not voting
1.
Senator Kerr moved to amend the bill on page 55, by striking all of lines 28 through 36;
By renumbering sections 34 and 35 as sections 33 and 34, respectively
The motion carried and the amendment was adopted.
The Committee recommended HB 2249 be passed as further amended.
FINAL ACTION OF BILLS AND CONCURRENT RESOLUTIONS
On motion of Senator Emert an emergency was declared by a 2 3/ constitutional majority,
and SB 444, 482; Sub. SB 494; SB 541, 672, 677; HB 2249, 2645, 2687, 2761 were
advanced to Final Action and roll call.
SB 444, An act amending the Kansas proprietary school act; affecting definitions; in-
creasing fees for certificates of approval and registration of representatives of schools; pro-
viding for the disposition of student records upon school closures; amending K.S.A. 72-4919,
72-4920, 72-4921, 72-4922, 72-4924, 72-4925, 72-4926, 72-4927, 72-4928, 72-4929,
72-4931, 72-4933, 72-4934, 72-4935, 72-4936, 72-4937, 72-4938, 72-4939 and 72-4940 and
K.S.A. 1997 Supp. 72-4932 and repealing the existing sections; also repealing K.S.A. 72-
4917, 72-4918 and 72-4923, was considered on final action.
On roll call, the vote was: Yeas 38, nays 1, present and passing 0; absent or not voting 1.
SB 482, An act concerning expungement; relating to diversion agreements; arrest records;
violations of city ordinances; amending K.S.A. 22-2911 and K.S.A. 1997 Supp. 12-4516 and
21-4619 and repealing the existing sections; also repealing K.S.A. 1997 Supp. 21-4619b, was
considered on final action.
On roll call, the vote was: Yeas 36, nays 3, present and passing 0; absent or not voting 1.
Sub. SB 494, An act concerning insurance; insurance department service regulation fund;
amending K.S.A. 1997 Supp. 40-112 and repealing the existing section; also repealing K.S.A.
1997 Supp. 40-112a, was considered on final action.
On roll call, the vote was: Yeas 39, nays 0, present and passing 0; absent or not voting 1.
SB 541, An act concerning financial institutions; consolidated returns for taxation under
article 11 of chapter 79 of the Kansas Statutes Annotated; duties of the secretary of revenue,
was considered on final action.
On roll call, the vote was: Yeas 23, nays 16, present and passing 0; absent or not voting
1.
SB 672, An act concerning tax increment financing; relating to the period of time by
which a project shall be completed and the determination of the assessed value of the
property located in a redevelopment district; amending K.S.A. 12-1776 and K.S.A. 1997
Supp. 12-1771 and 12-1775 and repealing the existing sections, was considered on final
action.
On roll call, the vote was: Yeas 39, nays 0, present and passing 0; absent or not voting 1.
This bill has a few improvements from SB 500 with the increase in income tax standard
deduction and the sales tax repeal for residential remodeling. It still falls grievously short of
being a balanced tax plan. There is no earned income tax credit for the working poor nor
any consideration for an improved refund of sales tax paid on food. The bill is also lacking
with its funding for education. Why did the Senate not vote on SB 447 several weeks ago
when it came out of the Education Committee? Twenty per cent of the second year tax
relief will go to an estimated 10,000 Kansans who file inheritance tax forms each year. A
more modest inheritance tax proposal would make dollars available to fund an earned in-
come tax credit and food sales tax refund that could benefit nearly half of all Kansans.--
Donald E. Biggs
Senators Feleciano, Gilstrap, Gooch, Goodwin, Hensley, Jones, Karr, Lee, Petty, and
Steineger request the record to show they concur with the ``Explanation of Vote'' offered
by Senator Biggs on HB 2249.
Mr. President: I wish to explain my vote on HB 2249.
I've served in this body for 19 sessions. Each year I hear: ``Sorry, we can't repair this;''
or ``we cannot afford to fund this or that project; we just don't have the money.''
From serving on the Joint Building Committee I know of the state's multitudinous, infra-
structural needs. National Guard Armories with leaking roofs, using buckets to catch water;
KBI Headquarters with a non-certified laboratory because of deficient space footage and
ventilation. I could give you numerous deficiencies in many, many state owned SRS build-
ings. They continue to deteriorate. Our state is the biggest violator of the ADA laws and
will continue to be so. We say we will work on this next year. What about the well docu-
mented technology needs in elementary, secondary, and higher education? The majority of
us know these needs are there. What about underfunding of K.P.E.R.S.?
Now, we experience a good year in which revenues are adequate to play some catch up.
Instead of doing what is right and prudent for all Kansans, we are more engrossed in doing
what we refer to as being ``politically correct,'' rather than what is in the best interest of
Kansans. We are not shouldering our responsibility. For the legislature to make these large
tax cuts in HB 2249 when all these needs exist, I cannot in good faith vote any way other
than NO.--Ben Vidricksen
Senator Barone requests the record to show he concurs with the ``Explanation of Vote''
offered by Senator Vidricksen on HB 2249.
HB 2645, An act concerning the employment security law; establishing contribution rates
for the 1999 calendar year and years thereafter; amending K.S.A. 1997 Supp. 44-710a and
repealing the existing section, was considered on final action.
On roll call, the vote was: Yeas 39, nays 0, present and passing 0; absent or not voting 1.
HB 2761, An act concerning grain storage; relating to public warehouseman's license;
waiver; amending K.S.A. 1997 Supp. 34-228 and repealing the existing section, was consid-
ered on final action.
On roll call, the vote was: Yeas 39, nays 0, present and passing 0; absent or not voting 1.