The Senate was called to order by President Dick Bond.
The roll was called with forty senators present.
Invocation by Chaplain Fred S. Hollomon:
Heavenly Father,
If all of us would read Ecclesiastes and learn from Solomon, we would save our-
selves a lot of frustration and disappointment.
So many have wasted their lives pursuing wealth, knowledge, pleasure, power, and
fame in a futile search for happiness.
Solomon had more possessions than anyone on earth.
He had more power than anyone.
He had access to more pleasure than anyone.
He was more perceptive than anyone.
He was more popular than anyone.
And yet, having reached the pinnacle in possessions, power, pleasure, perceptive-
ness, and popularity, his assessment of all of it was summed up in one word: ``Mean-
ingless! Meaningless! . . . Everything is meaningless!'' (Ecclesiastes 12:8)
But toward the end of the book Solomon begins to realize the truth he had over-
looked: ``Fear God and keep His commandments, for this is the whole duty of man.''
(Ecclesiastes 12:13)
And then centuries later You reminded us of the two great commandments: ``Love
the Lord your God with all your heart, soul, and mind, and love your neighbor as
yourself.''
O God, help us to learn from the mistakes of Solomon so we don't have to learn
from our own.
I pray in the Name of Christ, AMEN
COMMUNICATIONS FROM STATE OFFICERS
BOARD OF INDIGENTS' DEFENSE SERVICES
April 6, 1998
Patricia A. Scalia, Executive Director, State Board of Indigents' Defense Services, sub-
mitted the Indigency Screener Report and the newly developed indigency affidavit.
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 2893.
The House nonconcurs in Senate amendments to Senate Substitute for HB 2149,
requests a conference and has appointed Reps. Farmer, Edmonds and Helgerson as con-
ferees on the part of the House.
The House nonconcurs in Senate amendments to Substitute HB 2609, requests a con-
ference and has appointed Reps. O'Neal, Shore and Toelkes as conferees on the part of the
House.
The House nonconcurs in Senate amendments to HB 2724, requests a conference and
has appointed Reps. Mayans, Powell and Henry as conferees on the part of the House.
The House accedes to the request of the Senate for a conference on House Substitute forSB 618 and has appointed Reps. Farmer, Edmonds and Helgerson as conferees on the
part of the House.
INTRODUCTION OF HOUSE BILLS AND CONCURRENT RESOLUTIONS
HB 2893 were thereupon introduced and read by title.
CHANGE OF CONFERENCE
The President announced the appointment of Senator Petty as a member of the Confer-
ence Committee on SB 495 to replace Senator Gilstrap.
The President announced the appointment of Senator Morris as a member of the Con-
ference Committee on SB 11 to replace Senator Salisbury.
ORIGINAL MOTION
On motion of Senator Kerr, the Senate acceded to the request of the House for a con-
ference on S Sub. for HB 2149.
The President appointed Senators Kerr, Morris and Petty as conferees on the part of the
Senate.
On motion of Senator Praeger, the Senate acceded to the request of the House for a
conference on Sub. HB 2609.
The President appointed Senators Praeger, Salmans and Steineger as conferees on the
part of the Senate.
On motion of Senator Praeger, the Senate acceded to the request of the House for a
conference on HB 2724.
The President appointed Senators Praeger, Hardenburger and Steineger as conferees on
the part of the Senate.
REPORT ON ENGROSSED BILLS
SB 648 reported correctly engrossed April 3, 1998.
REPORT ON ENROLLED BILLS
SR 1852, 1853 reported correctly enrolled, properly signed and presented to the Sec-
retary of the Senate on April 3, 1998.
H Sub. for SB 100; SB 106, 672, 679 reported correctly enrolled, properly signed and
presented to the Governor on April 7, 1998.
SCR 1621 reported correctly enrolled, properly signed and presented to the Secretary
of State on April 7, 1998.
On motion of Senator Emert, the Senate recessed until 3:00 p.m.
______
Afternoon Session
The Senate met pursuant to recess with President Bond in the chair.
GUESTS
The Pittsburg State University Spirit Squad, Mascot Gus the Gorilla, and their coach were
welcomed to the Senate. Senator Barone congratulated them on their second place finish
in the NCAA Division II cheerleading and dancing competition.
MESSAGE FROM THE GOVERNOR
SB 149, 198, 270, 484 approved on April 7, 1998.
SB 593 approved on April 8, 1998.
MESSAGE FROM THE HOUSE
Announcing the House concurs in Senate amendments to Substitute HB 2662.
The House concurs in Senate amendments to HB 2799 and requests the Senate to return
the bill.
The House adopts the conference commitee report on HB 2419.
The House adopts the conference commitee report on SB 469.
The House adopts the conference commitee report on SB 493.
CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 469, submits the following report:
The House recedes from all of its Committee of the Whole amendments to the bill;
The Senate accedes to all other amendments to the bill;
And your committee on conference recommends the adoption of this report.
Garry G. Boston
Ralph M. Tanner
L. Candy Ruff
Conferees on part of House
Janic Hardenburger
Rich Becker
U.L. ``Rip'' Gooch Conferees on part of Senate
Senator Hardenburger moved the Senate adopt the Conference Committee report on SB 469.
On roll call, the vote was: Yeas 40, nays 0, present and passing 0; absent or not voting 0.
Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 493, 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 amendments,
as follows:
On page 14, in line 23, by striking all after ``director''; in line 24, by striking all before
the period and inserting ``at the expiration of nine months after the death of the decedent'';
On page 16, after line 38, by inserting a new section to read as follows:
``Sec. 6. K.S.A. 79-1565 is hereby amended to read as follows: 79-1565. The personal
representative of any decedent, the shares of whose estate are is not taxable under the
provisions of this the Kansas estate tax act, may obtain a determination of the director that
no tax liability exists thereon by filing an affidavit with the director stating that such shares of the decedent's estate are is not taxable. Any such affidavit shall be in such form as
prescribed by the secretary to show the condition of the estate and the shares thereof to
the extent that the director may make such determination. Upon being satisfied of the
information contained in such affidavit, the director shall issue a certificate that the shares of the decedent's estate are is not taxable under the provisions of this act to the person
making such affidavit, and when the estate is involved in proceedings before a district court,
to the judge of such court for recording in full in the journal of such court. Release of the
lien imposed by K.S.A. 79-1569, and amendments thereto, may be provided by filing notice
of release in the office of the register of deeds in any county where any such real property
included in the gross estate is located or, when the estate is involved in proceedings before
a district court, with the court. Any such notice of release shall be in such form as prescribed
by the secretary and may include use of or reference to the certificate issued by the director
or may be included as part of that certificate.'';
On page 26, in line 2, by striking ``17'' and inserting ``18''; in line 6, by striking ``17'' and
inserting ``18'';
On page 27, by striking all in lines 22 through 43;
By striking all on pages 28 through 32;
On page 33, by striking all in lines 1 through 34;
On page 34, in line 2, by striking ``$5,400'' and inserting ``$6,000''; in line 3, by striking
``$4,450'' and inserting ``$4,500''; in line 16, by striking ``$2,300'' and inserting ``$2,250''; in
line 23, by striking ``$2,300'' and inserting ``$2,250'';
On page 36, in line 19, by striking ``23'' and inserting ``20'';
On page 40, in line 34, by striking ``and''; after line 34, by inserting the following:
``(6) (A) The incremental severance and production of oil or gas which results from a production enhancement project begun on or after July 1, 1998, shall be exempt for a period of seven years from the startup date of such project. As used in this paragraph (6):
(1) ``Incremental severance and production'' means the amount of oil or natural gas which is produced as the result of a production enhancement project which is in excess of the base production of oil or natural gas, and is determined by subtracting the base pro- duction from the total monthly production after the production enhancement projects is completed.
(2) ``Base production'' means the average monthly amount of production for the twelve- month period immediately prior to the production enhancement project beginning date, minus the monthly rate of production decline for the well or project for each month beginning 180 days prior to the project beginning date. The monthly rate of production decline shall be equal to the average extrapolated monthly decline rate for the well or project for the twelve-month period immediately prior to the production enhancement project beginning date. Such monthly rate of production decline shall be continued as the decline that would have occurred except for the enhancement project. The calculation of the base production amount shall be evidenced by an affidavit and supporting documentation filed by the ap- plying taxpayer with the state corporation commission.
(3) ``Workover'' means any downhole operation in an existing oil or gas well that is designed to sustain, restore or increase the production rate or ultimate recovery of oil or gas, including but not limited to acidizing, reperforation, fracture treatment, sand/paraf- fin/scale removal or other wellbore cleanouts, casing repair, squeeze cementing, initial in- stallation, or enhancement of artificial lifts including plunger lifts, rods, pumps, submersible pumps and coiled tubing velocity strings, downsizing existing tubing to reduce well loading, downhole commingling, bacteria treatments, polymer treatments, upgrading the size of pumping unit equipment, setting bridge plugs to isolate water production zones, or any combination of the aforementioned operations; ``workover'' shall not mean the routine main- tenance, routine repair, or like for-like replacement of downhole equipment such as rods, pumps, tubing packers or other mechanical device.
(4) ``Production enhancement project'' means performing or causing to be performed the following:
(i) Workover;
(ii) recompletion to a different producing zone in the same well bore, except recomple- tions in formations and zones subject to a state corporation commission proration order;
(iii) secondary recovery projects;
(iv) addition of mechanical devices to dewater a gas or oil well;
(v) replacement or enhancement of surface equipment;
(vi) installation or enhancement of compression equipment, line looping or other tech- niques or equipment which increases production from a well or a group of wells in a project;
(vii) new discoveries of oil or gas which are discovered as a result of the use of new technology, including, but not limited to, three dimensional seismic studies.
(B) The state corporation commission shall adopt rules and regulations necessary to efficiently and properly administer the provisions of this paragraph (6) including rules and regulations for the qualification of production enhancement projects, the procedures for determining the monthly rate of production decline, criteria for determining the share of incremental production attributable to each well when a production enhancement project includes a group of wells, criteria for determining the start up date for any project for which an exemption is claimed, and determining new qualifying technologies for the purposes of paragraph (6)(A)(4)(vii).
(C) Any taxpayer applying for an exemption pursuant to this paragraph (6) shall make application to the director of taxation. Such application shall be accompanied by a state corporation commission certification that the production for which an exemption is sought results from a qualified production enhancement project and certification of the base pro- duction for the enhanced wells or group of wells, and the rate of decline to be applied to that base production. The secretary of revenue shall provide credit for any taxes paid between the project startup date and the certification of qualifications by the commission.
(D) The exemptions provided for in this paragraph (6) shall not apply for 12 months beginning July 1 of the year subsequent to any calendar year during which: (1) In the case of oil, the secretary of revenue determines that the weighted average price of Kansas oil at the wellhead has exceeded $20.00 per barrel; or (2) in the case of natural gas the secretary of revenue determines that the weighted average price of Kansas gas at the wellhead has exceeded $2.50 per Mcf.
(E) The provisions of this paragraph (6) shall not affect any other exemption allowable pursuant to this section; and'';
Also on page 40, in line 35, by striking ``(6)'' and inserting ``(7)'';
On page 48, in line 6, after ``facility'' by inserting ``, the original construction, reconstruc-
tion, restoration, remodeling, renovation, repair or replacement of a residence''; in line 17,
after ``term'' by inserting ``, except with regard to a residence,''; in line 21, by striking ``live
or''; in line 24, by striking ``and''; in line 31, after the semicolon by inserting ``and''; after
line 31, by inserting
``(4) ``residence'' shall mean only those enclosures within which individuals customarily
live;'';
On page 64, by striking all in lines 33 and 34; in line 35, by striking all before the period
and inserting ``$12,500 or less, an amount equal to $60. There shall be allowed for each
member of a household of a claimant having income of more than $12,500 but not more
than $25,000, an amount equal to $30''; in line 43, by striking ``$42'' and inserting ``$60 or
$30, as the case requires,'';
On page 65, by striking all in lines 18 through 43;
On page 66, by striking all in lines 1 through 10;
On page 71, in line 25, by striking ``and (16)'' and inserting ``(16) vehicles which are owned
by an organization having as one of its purposes the assistance by the provision of transit
services to the elderly and to disabled persons and which are exempted pursuant to K.S.A.
79-201 Ninth; and (17)'';
By renumbering existing sections accordingly;
On page 72, in line 31, by striking all after the third comma; in line 32, by striking all
before ``79-32,119'';
In the title, in line 21, before ``79-1569'' by inserting ``79-1565,''; in line 23, by striking
all before ``79-32,119''; in line 32, by striking ``79-1565,''; in line 33, by striking all after ``79-
1585''; in line 34, by striking all before the period and inserting ``and 79-1586''
And your committee on conference recommends the adoption of this report.
Phill Kline
Anthony J. Powell
Bruce Larkin
Conferees on part of House
Audrey Langworthy
David R. Corbin
Janis K. Lee Conferees on part of Senate
Senator Langworthy moved the Senate adopt the Conference Committee report on SB 493.
On roll call, the vote was: Yeas 39, nays 1, present and passing 0; absent or not voting 0.
Mr. President: Many of us came to the Legislature this year with a mission to have
meaningful tax relief in 4 principled areas:
Our goals were to:
1. Reduce the statewide mill levy to 20 mills--Our mission is accomplished in this bill.
2. Eliminate the inheritance tax and replace it with a tax that piggy-backs on the federal
estate tax--Our mission is accomplished in this bill.
3. Implement a 10% machinery and equipment tax credit--with this bill we exceed our
goal and accomplish a 15% tax credit.
4. Raise the personal exemption from $2000 to the federal exemption of $2650.--We
pushed the envelope to $2250--this is the first increase this decade.
Last week we were tempted to concur on the House version of Senate Bill 500 but I
made a motion to delay our vote:
This bill is superior because:
1. The mill levy is 20 instead of 23
2. The marriage penalty is corrected for all families that claim the Standard Deduction
on their income tax form
3. SB 603 severance tax is included which encourages the reworking of existing producing
oil wells which will keep them in production
This plan is bold, aggressive and historic--I gladly vote for SB 493.--Stan Clark
Senators Hardenburger, Harrington, Jordan and Umbarger request the record to show
they concur with the ``Explanation of Vote'' offered by Senator Clark on SB 493.
Mr. President: Last session, I reluctantly voted against the tax plan,HB 2031. And I
stood alone voting against the plan, not for fear of underfunding government but rather
because it did not cut taxes enough, While some warned against such a ``drastic cut'' of $125
million, many of whom then voted for the plan, here we are today to cut an additional $245
million. Similarly, just months ago, Governor Graves was warning against proposed cuts of
$200 million, particularly the plan proposed by myself and other Senate conservatives.
I stand to say today, Mr. President, that my constituents were right: the state should have
given much more tax relief than given last year. My constituents were also right when they
demanded the conservative tax relief proposal offered last December. For they know that
Kansas is an overtaxed state. Based on the latest available census data, Kansas has a 7.9%
higher tax burden per capita than Nebraska, 10.6% higher than Oklahoma, 13.6% higher
than Missouri, and a whopping 22.7% higher than Colorado.
Kansas taxpayers are right to demand real, significant tax relief. While we certainly could
do more than contained here, the action is long overdue.--Tim Huelskamp
Mr. President: I am voting for SB 493. As a tax reduction bill it is a gamble with our
future. We could have passed a plan that would have provided an excellent reduction in
taxes and still have assured stability in future funding. I do not understand the Governor's
motivation in making this somewhat reckless proposal. It is entirely possible that future
growth in revenue will take care of any future problem that we are creating. It is also possible
that modest economic growth will show this to have been folly. I vote a concerned and
doubtful ``aye''.--Dave Kerr
Mr. President: It's been a long road since last December when the Senate Conservative
Republicans introduced the first tax reduction plan for 1999. The four components of this
plan were:
1. Increase the state income tax personal exemption.
2. Reduce property tax to 20 mills.
3. Conform the Kansas estate tax to the federal program.
4. Provide a business and equipment income tax credit.
We conservatives are proud that these four elements are the foundation of this plan-- SB 493.
With the added tax reductions included in this plan we have provided some financial relief
for almost every group of Kansans. The most important part of this plan is relief for the
Kansas taxpayer who was over-taxed to create this surplus.
Kansas taxpayer, this relief is for you. I only regret it is not more. Now we must turn our
attention to the second part of this equation--reducing state government spending.--
Robert Tyson
Mr. President: I voted NO on SB 500, the first tax relief bill in the Senate earlier in
the session, because I felt we were not taking care of our responsibilities to our state owned
and operated infrastructure. We have buildings that are in dire need of repairs and reha-
bilitation, ADA requirements, infractions of building codes, fire codes, leaky roofs and many
more deficiencies including proper funding of education. KPERS needs attention also.
I realize that our revenues would let us play catch up and still provide a sizeable tax relief
package. I see no movement toward these needs. I will continue to vote No on large tax
relief measures until our needs are met, such as SB 493.--Ben Vidricksen
CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2126, as amended by senate committee, submits the following report:
The House accedes to all Senate amendments to the bill, and your committee on con-
ference further agrees to amend the bill, as printed with Senate Committee amendments,
as follows:
On page 2, in line 6, by striking ``or''; in line 7, before ``professional'' by inserting ``Kansas'';
in line 11, by striking ``organized under''; in line 12, by striking all before the period and
inserting the following: ``or foreign professional corporation in which at least one member
or shareholder is authorized by a licensing body, as defined in K.S.A. 1997 Supp. 74-146,
and amendments thereto, to render in this state a professional service permitted by the
articles of organization; or
(5) a general partnership or limited liability company, if all partners or members thereof
are authorized to render the professional services permitted by the articles of organization
of the issuing limited liability company formed pursuant to this section and in which at least
one partner or member is authorized by a licensing authority of this state to render in this
state the professional services permitted by the articles of organization of the limited liability
company'';
On page 4, by striking all in lines 28 through 32; in line 33, by striking ``(7)'' and inserting
``(6)''; in line 39, by striking ``(8)'' and inserting ``(7)'';
On page 9, in line 2, following ``17-7607'' by inserting ``, 17-7607, as amended by section
2 of 1998 Senate Bill No. 472,'';
On page 1, in the title, in line 15, before the period by inserting ``; also repealing K.S.A.
17-7607, as amended by section 2 of 1998 Senate Bill No. 472'';
And your committee on conference recommends the adoption of this report.
Tim Emert
Keith Schraad
Greta Goodwin
Conferees on part of Senate
Tim Carmody
Terry P. Presta
Jim Garner Conferees on part of House
Senator Emert moved the Senate adopt the Conference Committee report on HB 2126.
On roll call, the vote was: Yeas 40, nays 0, present and passing 0; absent or not voting 0.
Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2478, submits the following report:
The House accedes to all Senate amendments to the bill, and your committee on con-
ference further agrees to amend the bill, as printed with Senate Committee amendments,
as follows:
On page 10, by striking all in lines 34 through 43;
By striking all of page 11;
On page 12, by striking all in lines 1 through 6;
And by renumbering sections accordingly;
On page 13, after line 29, by inserting the following:
``New Sec. 9. (a) There is hereby created in the state treasury the wheat research re-
serve fund. All moneys credited to such fund shall be used solely to replace funding shortfalls
in the Kansas wheat commission fund for wheat research and market development. Such
expenditures of the Kansas wheat commission shall be made in accordance with appropri-
ation acts upon warrants of the director of accounts and reports issued pursuant to vouchers
approved by the administrator or the administrator's designee.
(b) No expenditures from the wheat research reserve fund shall be made for wheat
research and market development until the Kansas wheat commission has approved the
proposed expenditure.
(c) On or before the 10th of each month, the director of accounts and reports shall
transfer from the state general fund to the wheat research reserve fund established in sub-
section (a) interest earnings based on:
(1) The average daily balance of moneys in the wheat research reserve fund; and
(2) the net earnings rate of the pooled money investment portfolio for the preceding
month.
New Sec. 10. On July 1, 1998, the director of accounts and reports shall transfer
$650,000 from the Kansas wheat commission fund to the wheat research reserve fund.'';
And by renumbering sections accordingly;
Also on page 13, in lines 30 and 31, by striking ``, 82a-1369'';
On page 1, in the title, in line 13, before ``amending'' by inserting ``establishing the wheat
research reserve fund;''; in line 14, by striking ``, 82a-1369'';
And your committee on conference recommends the adoption of this report.
Dave Kerr
Stephen Morris
Marge Petty
Conferees on part of Senate
Phil Kline
Mike Farmer
Henry Helgerson, Jr. Conferees on part of House
Senator Kerr moved the Senate adopt the Conference Committee report on Sub.HB 2478.
On roll call, the vote was: Yeas 40, nays 0, present and passing 0; absent or not voting 0.
Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2552, submits the following report:
The House accedes to all Senate amendments to the bill, and your committee on con-
ference further agrees to amend the bill, as printed with Senate Committee of the Whole
amendments, as follows:
On page 2, in line 18, by striking all after the stricken word ``utility''; in line 19, before
the period, by inserting ``, a marketer of electricity, a broker of electricity, an electric public
utility, an electric cooperative, a city owning or operating a municipal electric utility, a
municipal energy agency, a federal power marketing administration or an investor owned
electric utility'';
And your committee on conference recommends the adoption of this report.
Pat Ranson
Jim Barone
Stan Clark
Conferees on part of Senate
Don Myers
Clay Aurand
Tom Burroughs Conferees on part of House
Senator Ranson moved the Senate adopt the Conference Committee report on HB 2552.
On roll call, the vote was: Yeas 40, nays 0, present and passing 0; absent or not voting 0.
The President announced the appointment of Senators Lawrence, Langworthy and Dow-
ney as members of the Conference Committee on HB2249 to replace Senators Langwor-
thy, Corbin and Lee.
REPORTS OF STANDING COMMITTEES
Committee on Federal and State Affairs recommends HCR 5052 be adopted.
On motion of Senator Emert the Senate adjourned until 9:00 a.m., Thursday, April 9,
1998.