The Senate was called to order by Vice-President Alicia Salisbury.
The roll was called with forty senators present.
Invocation by Chaplain Fred S. Hollomon:
Heavenly Father,
When the pressure is increasing
And the tension takes its toll.
It's time to take some action
Before we lose control.
To help us loosen up, O God,
It's a fact and not a rumor
You have given us an antidote;
It's called a sense of humor.
When tempers start to shorten
And our anger turns to wrath,
We must come up with something
That'll produce a hearty laugh.
Before we start to raise our voice
And our ears begin to smoke,
Sometimes there's nothing better
Than a clean, appropriate joke!
And before our face is turning red
And we're white around the knuckles,
Someone needs to say some things
That will cause us all to chuckle!
Before we lose our cool, O God,
And the expletives begin,
Someone with a funny word
Could help us all to grin.
This gift You have endowed us with,
Can save a lot of grief;
So we thank You, Lord, for giving us
Some COMIC RELIEF!!
I pray in the Name of Christ,
AMEN
REFERENCE OF BILLS AND CONCURRENT RESOLUTIONS
The following bills were referred to Committees as indicated:
Federal and State Affairs: SB 694.
Ways and Means: HB 2758.
ORIGINAL MOTION
Senator Emert moved that subsection 4(k) of the Joint Rules of the Senate and House
of Representatives be suspended for the purpose of considering the following bill: HB 2626.
CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2626, 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 9, by striking lines 22 through 43;
On page 10, by striking lines 1 through 8;
And by renumbering remaining sections accordingly;
Also on page 10, in line 9, by striking ``and 60-1615'';
On page 1, in the title, in line 12, by striking all before ``amend-''; in line 13, by striking
``and 60-1615'';
And your committee on conference recommends the adoption of this report.
Tim Emert
Edward W. Pugh
Greta Goodwin
Conferees on part of Senate
Tim Carmody
Terry P. Presta
Jim D. Garner Conferees on part of House
Senator Emert moved the Senate adopt the Conference Committee report on HB 2626.
On roll call, the vote was: Yeas 40, nays 0, present and passing 0; absent or not voting 0.
INTRODUCTION OF ORIGINAL MOTIONS AND SENATE RESOLUTIONS
Senators Emert and Barone introduced the following Senate resolution, which was read:
SENATE RESOLUTION No. 1859--
A RESOLUTION congratulating and commending Paul L. Wilbert.
WHEREAS, Paul L. Wilbert, 83, of Pittsburg, has had a distinguished career as lawyer,
civic servant and Kansas booster; and
WHEREAS, Paul L. Wilbert was graduated from Belleville High School in 1932. He
attended the University of Kansas on a Summerfield scholarship. After graduating from the
University of Kansas School of Law he was admitted to the Kansas bar in 1938. He has
been practicing law in Pittsburg since his admission to the bar, except for service in the U.S.
Army in Europe during World War II; and
WHEREAS, The University of Kansas School of Law awarded Paul L. Wilbert its K.U.
Law Society's Distinguished Alumnus Citation in 1977, and in 1986 he was made a member
of the University of Kansas' Gold Medal Club recognizing 50 years of service to the uni-
versity. Active in extra-curricular activities as a student, Paul L. Wilbert continued his in-
volvement with the university by never missing a home football game in 40 years; and
WHEREAS, Paul L. Wilbert, the senior partner in a Pittsburg law firm, was appointed
in 1954 as a Kansas Commissioner to the National Conference of Commissioners on Uni-
form State Law and has been named a life member of the conference. He has served as a
member of the Board of Law Examiners for the state of Kansas and as a member and
president of the Kansas University Law Society. He was given a 50 year membership pin
by the Kansas Bar Association in 1988. He is a fellow of the American Bar Foundation,
Kansas Bar Foundation, the American College of Trust and Estate Counsel and the National
Academy of Elder Law Attorneys; and
WHEREAS, Paul L. Wilbert is particulary proud that he formed and headed the first
successful United Way drive in Pittsburg; and
WHEREAS, Paul L. Wilbert is married to the former Florine Temperelli; they have one
son, Dennis: Now, therefore,
Be it resolved by the Senate of the State of Kansas: That we recognize and congratulate
Paul L. Wilbert for his service to his city, university and state; and
Be it further resolved: That the Secretary of the Senate be directed to provide an en-
rolled copy of this resolution to Paul L. Wilbert, 506 N. Pine, Pittsburg, Kansas 66762.
On emergency motion of Senator Emert SR 1859 was adopted unanimously.
Senators Lawrence, Donovan, Downey, Feleciano, Gooch, Harrington and Ranson intro-
duced the following Senate resolution, which was read:
SENATE RESOLUTION No. 1860--
A RESOLUTION congratulating and commending the Wichita State University
men's bowling team for winning the 1998 National Championship.
WHEREAS, The Wichita State University (WSU) men's bowling team won the 1998
Intercollegiate National Championship in Madison, Wisconsin, on April 15-19, 1998; and
WHEREAS, WSU beat St. John's 418-404 and Central Missouri State University 449-
416 in the semi-finals and defeated Michigan State University 416-368 to win the National
Championship; and
WHEREAS, The WSU men's team won national championships in 1980, 1987, 1993,
1994, 1995 and 1998; and
WHEREAS, Coach Gordon Vadakin has coached the team since 1978, leading them to
the National Collegiate Bowling Championship 17 times; and
WHEREAS, WSU freshman Matt McFayden was named to the All-Tournament team:
Now, therefore,
Be it resolved by the Senate of the State of Kansas: That we congratulate and commend
the Wichita State University men's bowling team for winning the 1998 National Collegiate
Championship Tournament; and
Be it further resolved: That the Secretary of the Senate be directed to send enrolled
copies of this resolution to Coach Gordon Vadakin and team members Mike Eaton, Matt
McFayden, Erick Pawlack, Tim Penner, Jason Williams and Tammam Sharief, all in care
of Coach Gordon Vadakin, Wichita State University, 1845 N. Fairmont, Wichita, Kansas
67208-0056.
On emergency motion of Senator Ranson SR 1860 was adopted unanimously.
Senator Ranson introduced and congratulated team members Mike Eaton, Matt Mc-
Fayden, Erick Pawlack, Tim Penner, Jason Williams and Tammam Sharief.
Senators Lawrence, Donovan, Downey, Feleciano, Gooch, Harrington and Ranson intro-
duced the following Senate resolution, which was read:
SENATE RESOLUTION No. 1861--
A RESOLUTION congratulating and commending the Wichita State University
women's bowling team for placing sixth in the 1998 National Championship.
WHEREAS, The Wichita State University (WSU) women's bowling team took sixth place
in the 1998 Intercollegiate Bowling Championship in Madison, Wisconsin, on April 15-19,
1998; and
WHEREAS, The WSU women's bowling team won national titles in 1975, 1977, 1978,
1986, 1990 and 1994; and
WHEREAS, WSU Coach Gordon Vadakin has coached the team since 1978, leading
them to the National Collegiate Bowling Championship 20 times and winning 3 national
titles; and
WHEREAS, Since 1982, the WSU women's bowling team has finished no lower than
eighth in the nation: Now, therefore,
Be it resolved by the Senate of the State of Kansas: That we congratulate and commend
the Wichita State University women's bowling team for placing sixth in the 1998 National
Championship; and
Be it further resolved: That the Secretary of the Senate be directed to send enrolled
copies of this resolution to Coach Gordon Vadakin and players Lindsay Chandler, Kassy
Hyman, Kristi Lubash, Michelle Phillips, Kelly Simme and Heidi Woods, all in care of Coach
Gordon Vadakin, Wichita State University, 1845 N. Fairmont, Wichita, Kansas 67208-0056.
On emergency motion of Senator Ranson SR 1861 was adopted unanimously.
Senator Ranson introduced and congratulated team members Lindsay Chandler, Kassy
Hyman, Kristi Lubash, Michelle Phillips, Kelly Simme, Heidi Woods.
Accompanying the men's and women's teams were Coach Gordon Vadakin, Assistant
Coach Pat Henry and Bill Smith, Director of the Student Center, Wichita State University,
Wichita.
Senator Hensley introduced the following Senate resolution, which was read:
SENATE RESOLUTION No. 1862--
A RESOLUTION requesting the Statehouse Art and History Committee to consider placing
a mural in the Capitol honoring the 1st Kansas (Colored) Voluntary Infantry Regiment
and the Honorable Kansas Senator James Henry Lane, a Kansas military and political
leader and a recruiter of troops in that regiment.
WHEREAS, On August 4, 1862, the Honorable James H. Lane, U.S. Senator from Kan-
sas, appointed Captains James M. Williams and H. C. Seaman, U.S. Army, to recruit a
regiment of infantry for the U.S. Army to be composed of ``men of African descent.'' They
were mustered into the regular army on January 13, 1863; and
WHEREAS, In the year 1862, members of the 1st Kansas (Colored) Infantry Regiment
were the first African-American troops of the Civil War to be engaged in combat--on
October 28 and 29 at Island Mound, or Toothman's Mound, near the town of Bulter in
Bates County, Missouri; and
WHEREAS, The intrepid 1st Kansas (Colored) Infantry's contribution at Toothman's
Mound helped prompt President Abraham Lincoln to issue the Emancipation Proclamation
and inspired hundreds of thousands of other African-American men to take up arms in the
cause of union and free soil--undoubtedly influencing the outcome of that war and perhaps
proving decisive in the preservation of government of the people, by the people and for the
people in the world as we know it; and
WHEREAS, African-American soldiers held the middle of the lines while fighting along-
side white troops in the historic Civil War battle of Honey Springs on July 17-18, 1863,
north of Checotah, Oklahoma, near Rentiesville, a battle that is referred to as the ``Gettys-
burg of the West.'' The battle of Honey Springs was fought on the Old Texas Road, the
main prewar transportation route connecting Indian Territory with Kansas, Missouri, Ar-
kansas and Texas. It was the largest and most decisive of the Civil War in Indian Territory;
and
WHEREAS, The 1st Kansas (Colored) Infantry Regiment is extremely important to
American history, and it is important that the 1st Kansas (Colored) Infantry Regiment be
remembered. It is essential to preserve and teach all youth about the rich heritage of the
1st Kansas (Colored) Infantry Regiment: Now, therefore,
Be it resolved by the Senate of the State of Kansas: That the 1st Kansas (Colored)
Voluntary Infantry Regiment and the Honorable Kansas Senator James Henry Lane, a Kan-
sas military and political leader and a recruiter of troops in that regiment should be honored
by placement of a memorial mural in the Capitol; and
Be it further resolved: That the Secretary of the Senate be directed to provide an en-
rolled copy of this resolution to C.E. ``Sonny'' Scroggins, President, Bias Busters of Kansas/
Kansas Fever Committee, 3730 SE Truman Avenue, Topeka, Kansas 66605.
On emergency motion of Senator Hensley SR 1862 was adopted unanimously.
Senators Lawrence, Bond, Feleciano, Hensley, Karr, Kerr, Langworthy, Ranson, Salis-
bury and Vidricksen introduced the following Senate resolution, which was read:
SENATE RESOLUTION No. 1863--
A RESOLUTION in memory of Wallace Benjamin (Ben) Foster.
WHEREAS, Ben Foster, 71, of Wichita, died March 13, 1998, at his second home in
Taos, New Mexico; and
WHEREAS, Ben Foster, a life-long Republican, served 20 years in the Kansas House of
Representatives (1965-68 and 1975-90) and four years in the Kansas Senate (1969-72). He
was Speaker Pro Tem of the House of Representatives from 1981 through 1984. His com-
mittee assignments included Judiciary, Ways and Means, Arts and Cultural Resources and
Health. His expertise in the legislative process caused him to be greatly respected by others
in state government; and
WHEREAS, Ben Foster was born in Hutchinson, and while attending Hutchinson public
schools won a Kansas State Debate Championship. He served as a naval cadet during World
War II. After World War II he attended the University of Kansas where he earned Bachelor
of Arts and Doctor of Laws Degrees. He served in the Air Force during the Korean War
and continued in the Air Force Reserve after the war retiring with the rank of Lieutenant
Colonel. After the end of the Korean War, he returned to Kansas and to the practice of law
in Wichita. He joined an old friend, Kenneth F. Beck, to found the law firm of Beck and
Foster. He served as Municipal Court Judge from 1967-69; and
WHEREAS, Ben Foster is survived by his wife, Lucinda Stevens Foster: Now, therefore,
Be it resolved by the Senate of the State of Kansas: That we extend our deepest sympathy
to the family and friends of Ben Foster; and
Be it further resolved: That the Secretary of the Senate be directed to send an enrolled
copy of this resolution to Mrs. Wallace Benjamin Foster, 25 Camino Ovejero Road, El
Prado, New Mexico 87529.
On emergency motion of Senator Lawrence SR 1863 was adopted unanimously.
Senator Huelskamp introduced the following Senate resolution, which was read:
SENATE RESOLUTION No. 1864--
A RESOLUTION recognizing the importance of the Santa Fe Trail to Kansas history.
WHEREAS, A dedication ceremony will be held Friday, May 1, 1998, at Dodge City to
mark improvements to the Santa Fe Trail rut site. The site, nine miles west of Dodge City,
contains new interpretive exhibits, a gazebo, benches and an ADA accessible sidewalk; and
WHEREAS, These improvements are intended to mark and commemorate the Santa Fe
Trail. They also serve to preserve and protect the cultural and natural resources of this
significant historic site, while promoting the educational and interpretive opportunities
about the trail and its role in the history of Dodge City. This site has been listed on the
National Register of Historic Places since 1966 and has been certified by the National Park
Service since 1992; and
WHEREAS, The Santa Fe Trail stirs people's imaginations as few other historic trails.
During its colorful history its route assisted in the western expansion of the United States.
The ruts of this trail cut deep into the Kansas sod and are preserved that we may be reminded
of the courage and fortitude of our ancestors that crossed these dusty trails: Now, therefore,
Be it resolved by the Senate of the State of Kansas: That we note with pride the im-
provements being made to the Santa Fe Trail rut site and remember the importance of the
Santa Fe Trail to Kansas history; and
Be it further resolved: That the Secretary of the Senate be directed to provide five
enrolled copies of this resolution to Senator Huelskamp.
On emergency motion of Senator Huelskamp SR 1864 was adopted unanimously.
REPORT ON ENGROSSED BILLS
SB 298 correctly re-engrossed April 30, 1998.
REPORT ON ENROLLED BILLS
SR 1858 reported correctly enrolled, properly signed and presented to the Secretary of
the Senate on April 30, 1998.
ORIGINAL MOTION
Senator Emert moved that subsection 4(k) of the Joint Rules of the Senate and House
of Representatives be suspended for the purpose of considering the following bills:HB 2612, 2684; S. Sub. for HB 2715; HB 2739, 2969, 2993, 3014.
FINAL ACTION OF BILLS AND CONCURRENT RESOLUTIONS
On motion of Senator Emert an emergency was declared by a 2 3/ constitutional majority,
and HB 2612, 2684; S. Sub. for HB 2715; HB 2739, 2969, 2993, 3014 were advanced
to Final Action, subject to amendment, debate and roll call.
HB 2612, An act concerning audits; relating to audits of the Kansas public employees
retirement system; concerning the pooled money investment board; amending K.S.A. 46-
1106. 75-4222 and 75-4234 and K.S.A. 1997 Supp. 74-4921 and repealing the existing sec-
tions; also repealing K.S.A. 75-627, was considered on final action.
On roll call, the vote was: Yeas 40, nays 0, present and passing 0; absent or not voting 0.
HB 2684, An act relating to taxation; concerning the procedures of the state board of tax
appeals; concerning certain property tax exemptions; amending K.S.A. 74-2426, 77-529, 79-
201a, 79-213, as amended by section 36 of 1998 Senate Bill No. 493, and 79-251 and K.S.A.
1997 Supp. 74-2433 and repealing the existing sections; also repealing K.S.A. 79-252, was
considered on final action.
The bill was amended by motion of Senator Langworthy on page 5, after line 37, by
inserting the following:
``Sec. 2. K.S.A. 1997 Supp. 74-2433 is hereby amended to read as follows: 74-2433. (a)
There is hereby created a state board of tax appeals, referred to in this act as the board.
The board shall be composed of five members who shall be appointed by the governor,
subject to confirmation by the senate as provided in K.S.A. 75-4315b, and amendments
thereto. After January 15, 1999, three of such members shall: (1) Have been regularly ad- mitted to practice law in the state of Kansas; and (2) for a period of at least five years, have engaged in the active practice of law as a lawyer, judge of a court of record or any other court in this state, or as a certified public accountant who has maintained registration as an active attorney with the Kansas supreme court, or any combination thereof. Except as pro-
vided by K.S.A. 1997 Supp. 46-2601, no person appointed to the board shall exercise any
power, duty or function as a member of the board until confirmed by the senate. Not more
than three members of the board shall be of the same political party. Except as provided by subsection (b), members Members of the board shall be residents of the state. Subject
to the provisions of K.S.A. 75-4315c, and amendments thereto, one shall be appointed from
each of the congressional districts of Kansas and the remainder from the state at large. The
members of the board shall be selected with special reference to training and experience
for duties imposed by this act. Members appointed after the effective date of this act and
shall be individuals with legal, accounting or appraisal training and experience. Members shall be subject to the supreme court rules of judicial conduct applicable to all judges of the district court. The board shall be bound by the doctrine of stare decisis limited to published decisions of an appellate court other than a district court. Members shall hold office for
terms of four years and until their successors are appointed and confirmed. Such terms of office shall expire on January 15 of the last year of such term. If a vacancy occurs on the
board, the governor shall appoint a successor to fill the vacancy for the unexpired term. The
governor shall select one of its members to serve as chairperson. The votes of three members
shall be required for any action to be taken by the board. Meetings may be called by the
chairperson and shall be called on request of a majority of the members of the board and
when otherwise prescribed by statute.
(b) Any member of the state board of tax appeals may be removed by the governor for
cause, after public hearing conducted in accordance with the provisions of the Kansas ad-
ministrative procedure act.
(b) The terms of members who are serving on the board on the effective date of this act shall expire on January 15, of the year in which such member's term would have expired under the provisions of this section prior to amendment by this act. Thereafter, members shall be appointed for terms of four years and until their successors are appointed and confirmed.
(c) The state board of tax appeals shall appoint, subject to approval by the governor, an executive director of the board, to serve at the pleasure of the board. The executive director shall: (1) Be in the unclassified service under the Kansas civil service act; (2) devote full time to the executive director's assigned duties; (3) receive such compensation as determined by the board, subject to the limitations of appropriations thereof; and (4) have familiarity with the tax appeals process sufficient to fulfill the duties of the office of executive director. The executive director shall perform such duties as directed by the board.
(d) Appeals decided by the state board of tax appeals which are deemed of sufficient importance to be published shall be prepared and delivered to the director of printing, who shall as speedily as possible print and publish such number of copies as shall be specified by the board.
(e) After appointment, members of the state board of tax appeals shall complete the following course requirements: (1) A tested appraisal course of not less than 30 clock hours of instruction consisting of the fundamentals of real property appraisal with an emphasis on the cost and sales approaches to value; (2) a tested appraisal course of not less than 30 clock hours of instruction consisting of the fundamentals of real property appraisal with an em- phasis on the income approach to value; (3) a tested appraisal course of not less than 30 clock hours of instruction with an emphasis on mass appraisal; (4) an appraisal course with an emphasis on Kansas property tax laws and; (5) an appraisal course on the techniques and procedures for the valuation of state assessed properties with an emphasis on unit valuation; and (6) a tested appraisal course on the techniques and procedures for the valu- ation of land devoted to agricultural use pursuant to K.S.A. 79-1476, and amendments thereto. The executive director shall adopt rules and regulations prescribing a timetable for the completion of the course requirements and prescribing continued education requirements for members of the board.
(c) (f) The state board of tax appeals shall have no capacity or power to sue or be sued.
Sec. 3. K.S.A. 74-2426 is hereby amended to read as follows: 74-2426. (a) Orders of
the board of tax appeals on any appeal, in any proceeding under the tax protest, tax grievance
or tax exemption statutes or in any other original proceeding before the board shall be
rendered and served in accordance with the provisions of the Kansas administrative pro-
cedure act. Notwithstanding the provisions of subsection (g) of K.S.A. 77-526 and amend-
ments thereto, a final order of the board shall be rendered in writing and served within 120
days after the matter was fully submitted to the board unless this period is waived or ex-
tended with the written consent of all parties or for good cause shown.
(b) No final order of the board shall be subject to review pursuant to subsection (c)
unless the aggrieved party first files a petition for reconsideration of that order with the
board in accordance with the provisions of K.S.A. 77-529 and amendments thereto.
(c) Any action of the board pursuant to this section is subject to review in accordance
with the act for judicial review and civil enforcement of agency actions, except that:
(1) The parties to the action for judicial review shall be the same parties as appeared
before the board in the administrative proceedings before the board. The board shall not
be a party to any action for judicial review of an action of the board.
(2) There is no right to review of any order issued by the board in a no-fund warrant
proceeding pursuant to K.S.A. 12-110a, 12-1662 et seq., 19-2752a, 79-2938, 79-2939 and
79-2951, and amendments thereto, and statutes of a similar character.
(3) The court of appeals has jurisdiction of any action for review pertaining to property
appraised and assessed by the director of property valuation or, excise, income or inheritance
taxes assessed by the director of taxation and the exemption of any property from property taxation. The district court of the proper county has jurisdiction in all other cases.
(4) Review of orders issued by the board of tax appeals relating to the valuation or
assessment of property for ad valorem tax purposes or relating to the tax protest shall be
conducted by the district court of the county in which the property is located or, if located
in more than one county, the district court of any county in which any portion of the property
is located. Review of orders relating to tax exemption under K.S.A. 79-201 et seq., and amendments thereto, shall be conducted by the district court of Shawnee county.
(5) In addition to the cost of the preparation of the transcript, the appellant shall pay
to the board the other costs of certifying the record to the reviewing court. Such payment
shall be made prior to the transmission of the agency record to the reviewing court.
(d) If review of an order of the board relating to excise, income or inheritance taxes, is
sought by a person other than the director of taxation, such person shall give bond for costs
at the time the petition is filed. The bond shall be in the amount of 125% of the amount of
taxes assessed or a lesser amount approved by the court of appeals and shall be conditioned
on the petitioner's prosecution of the review without delay and payment of all costs assessed
against the petitioner.
(e) If review of an order is sought by a party other than the director of property valuation
or a taxing subdivision and the order determines, approves, modifies or equalizes the amount
of valuation which is assessable and for which the tax has not been paid, a bond shall be
given in the amount of 125% of the amount of the taxes assessed or a lesser amount approved
by the reviewing court. The bond shall be conditioned on the petitioner's prosecution of
the review without delay and payment of all costs assessed against the petitioner.
Sec. 4. K.S.A. 77-529 is hereby amended to read as follows: 77-529. (a) Any (1) Except as otherwise provided by paragraph (2), any party, within 15 days after service of a final
order, may file a petition for reconsideration with the agency head, stating the specific
grounds upon which relief is requested. The filing of the petition is not a prerequisite for
seeking administrative or judicial review except as provided in K.S.A. 44-1010 and 44-1115,
and amendments thereto, concerning orders of the Kansas human rights commission, K.S.A.
55-606 and 66-118b, and amendments thereto, concerning orders of the corporation com-
mission and K.S.A. 74-2426, and amendments thereto, concerning orders of the board of
tax appeals.
(2) Any party applying for an exemption under: (A) Section 13, of article 11 of the Kansas Constitution, or (B) K.S.A. 79-201a Second, and amendments thereto, for property con- structed or purchased, in whole or in part, with the proceeds of revenue bonds under the authority of K.S.A. 12-1740 to 12-1749, inclusive, and amendments thereto, may file a pe- tition for reconsideration with the state board of tax appeals within 30 days after service of a final order.
(b) Within 20 days after the filing of the petition, the agency head shall render a written
order denying the petition, granting the petition and dissolving or modifying the final order,
or granting the petition and setting the matter for further proceedings. The petition may be
granted, in whole or in part, only if the agency head states, in the written order, findings of
fact, conclusions of law and policy reasons for the decision if it is an exercise of the state
agency's discretion, to justify the order. In proceedings before the Kansas corporation com-
mission, the petition is deemed to have been denied if the agency head does not dispose of
it within 30 days after the filing of the petition.
An order under this section shall be served on the parties in the manner prescribed by
K.S.A. 77-531 and amendments thereto.
(c) Any order rendered upon reconsideration or any order denying a petition for recon-
sideration shall state the agency officer to receive service of a petition for judicial review on
behalf of the agency.
(d) For the purposes of this section, ``agency head'' shall include a presiding officer
designated in accordance with subsection (g) of K.S.A. 77-514, and amendments thereto.
Sec. 5. K.S.A. 79-213, as amended by section 36 of 1998 Senate Bill No. 493, is hereby
amended to read as follows: 79-213. (a) Any property owner requesting an exemption from
the payment of ad valorem property taxes assessed, or to be assessed, against their property
shall be required to file an initial request for exemption, on forms approved by the board
of tax appeals and provided by the county appraiser.
(b) The initial exemption request shall identify the property for which the exemption is
requested and state, in detail, the legal and factual basis for the exemption claimed.
(c) The request for exemption shall be filed with the county appraiser of the county
where such property is principally located.
(d) After a review of the exemption request, and after a preliminary examination of the
facts as alleged, the county appraiser shall recommend that the exemption request either
be granted or denied, and, if necessary, that a hearing be held. If a denial is recommended,
a statement of the controlling facts and law relied upon shall be included on the form.
(e) The county appraiser, after making such written recommendation, shall file the
request for exemption and the recommendations of the county appraiser with the board of
tax appeals.
(f) Upon receipt of the request for exemption, the board shall docket the same and
notify the applicant and the county appraiser of such fact.
(g) After examination of the request for exemption, and the county appraiser's recom-
mendation related thereto, the board may fix a time and place for hearing, and shall notify
the applicant and the county appraiser of the time and place so fixed. A request for exemption pursuant to: (1) Section 13 of article 11 of the Kansas constitution; or (2) K.S.A. 79-201a Second, and amendments thereto, for property constructed or purchased, in whole or in part, with the proceeds of revenue bonds under the authority of K.S.A. 12-1740 to 12-1749, inclusive, and amendments thereto, prepared in accordance with instructions and assistance which shall be provided by the department of commerce and housing, shall be scheduled for hearing within 30 days after the date of receipt of all required information and data relating to the request for exemption, and such hearing shall be conducted within 90 days after such date. Such time periods shall be determined without regard to any extension or continuance allowed to either party to such request. In any case where a party to such request for
exemption requests a hearing thereon, the same shall be granted. Hearings shall be con-
ducted in accordance with the provisions of the Kansas administrative procedure act. In all
instances where the board sets a request for exemption for hearing, the county shall be
represented by its county attorney or county counselor.
(h) In Except as otherwise provided by subsection (g), in the event of a hearing, the
same shall be originally set not later than 90 days after the filing of the request for exemption
with the board.
(i) During the pendency of a request for exemption, no person, firm, unincorporated
association, company or corporation charged with real estate or personal property taxes
pursuant to K.S.A. 79-2004 and 79-2004a, and amendments thereto, on the tax books in the
hands of the county treasurer shall be required to pay the tax from the date the request is
filed with the county appraiser until the expiration of 30 days after the board issued its order
thereon and the same becomes a final order. In the event that taxes have been assessed
against the subject property, no interest shall accrue on any unpaid tax for the year or years
in question nor shall the unpaid tax be considered delinquent from the date the request is
filed with the county appraiser until the expiration of 30 days after the board issued its order
thereon. In the event the board determines an application for exemption is without merit
and filed in bad faith to delay the due date of the tax, the tax shall be considered delinquent
as of the date the tax would have been due pursuant to K.S.A. 79-2004 and 79-2004a, and
amendments thereto, and interest shall accrue as prescribed therein.
(j) In the event the board grants the initial request for exemption, the same shall be
effective beginning with the date of first exempt use except that, with respect to property
the construction of which commenced not to exceed 24 months prior to the date of first
exempt use, the same shall be effective beginning with the date of commencement of con-
struction.
(k) In conjunction with its authority to grant exemptions, the board shall have the au-
thority to abate all unpaid taxes that have accrued from and since the effective date of the
exemption. In the event that taxes have been paid during the period where the subject
property has been determined to be exempt, the board shall have the authority to order a
refund of taxes for a period not to exceed three years.
(l) The provisions of this section shall not apply to: (1) Farm machinery and equipment
exempted from ad valorem taxation by K.S.A. 79-201j, and amendments thereto; (2) personal
property exempted from ad valorem taxation by K.S.A. 79-215, and amendments thereto;
(3) wearing apparel, household goods and personal effects exempted from ad valorem tax-
ation by K.S.A. 79-201c, and amendments thereto; (4) livestock; (5) hay and silage exempted
from ad valorem taxation by K.S.A. 79-201d, and amendments thereto; (6) merchants' and
manufacturers' inventories exempted from ad valorem taxation by K.S.A. 79-201m and
amendments thereto; (7) grain exempted from ad valorem taxation by K.S.A. 79-201n, and
amendments thereto; (8) property exempted from ad valorem taxaty K.S.A. 79-201a Sev- enteenth and amendments thereto, including all property previously acquired by the sec-
retary of transportation or a predecessor in interest, which is used in the administration,
construction, maintenance or operation of the state system of highways. The secretary of
transportation shall at the time of acquisition of property notify the county appraiser in the
county in which the property is located that the acquisition occurred and provide a legal
description of the property acquired; (9) property exempted from ad valorem taxation by
K.S.A. 79-201a Ninth, and amendments thereto, including all property previously acquired
by the Kansas turnpike authority which is used in the administration, construction, main-
tenance or operation of the Kansas turnpike. The Kansas turnpike authority shall at the time
of acquisition of property notify the county appraiser in the county in which the property is
located that the acquisition occurred and provide a legal description of the property ac-
quired; (10) aquaculture machinery and equipment exempted from ad valorem taxation by
K.S.A. 79-201j, and amendments thereto. As used in this section, ``aquaculture'' has the
same meaning ascribed thereto by K.S.A. 47-1901, and amendments thereto; (11) Christmas
tree machinery and equipment exempted from ad valorem taxation by K.S.A. 79-201j, and
amendments thereto; (12) property used exclusively by the state or any municipality or
political subdivision of the state for right-of-way purposes. The state agency or the governing
body of the municipality or political subdivision shall at the time of acquisition of property
for right-of-way purposes notify the county appraiser in the county in which the property is
located that the acquisition occurred and provide a legal description of the property ac-
quired; (13) machinery, equipment, materials and supplies exempted from ad valorem tax-
ation by K.S.A. 79-201w, and amendments thereto; (14) vehicles owned by the state or by
any political or taxing subdivision thereof and used exclusively for governmental purposes;
and (15) property used for residential purposes which is exempted pursuant to K.S.A. 79-
201x from the property tax levied pursuant to K.S.A. 1997 Supp. 72-6431, and amendments
thereto.
(m) The provisions of this section shall apply to property exempt pursuant to the pro-
visions of section 13 of article 11 of the Kansas constitution.
(n) The provisions of subsection (j) and (k) as amended by this act shall be applicable
to all taxable years commencing after December 31, 1995.
Sec. 6. K.S.A. 79-251 is hereby amended to read as follows: 79-251. Prior to the grant-
ing of an exemption for any property from ad valorem taxation pursuant to the provisions
of section 13 of article 11 of the Kansas constitution, the board of county commissioners of
any county or the governing body of any city, as the case requires, shall be required to do
the following:
(a) Develop and adopt official policies and procedures for the granting of such exemp-
tions including:
(1) The required preparation of an analysis of the costs and benefits of each exemption,
including the effect of the exemption on state revenues, prior to the granting of such ex-
emption;
(2) a procedure for monitoring the compliance of a business receiving an exemption
with any terms or conditions established by the governing body for the granting of the
exemption; and
(b) conduct a public hearing on the granting of such exemption. Notice of the public
hearing shall be published at least once seven days prior to the hearing in the official city
or county newspaper, as the case requires, and shall indicate the purpose, time and place
thereof. In addition to such publication notice, the city or county clerk, as the case requires,
shall notify in writing the governing body of the city or county and unified school district
within which the property proposed for exemption is located; and
(c) adopt a resolution containing the following findings of fact:
(1) That the property for which the exemption is to be granted will be used exclusively for the purposes specified in section 13 of article 11 of the Kansas constitution; and
(2) if the business using the property is relocating from one city or county to another within this state, that the business has received approval of the secretary of commerce and housing prior to qualifying for the exemption upon a finding by the secretary that such relocation is necessary to prevent the business from relocating outside this state.'';
By renumbering existing sections accordingly;
Also, on page 5, in line 38, by striking ``79-201a is'' and inserting ``74-2426, 77-529, 79-
201a, 79-213, as amended by section 36 of 1998 House Bill No. 493, 79-251 and 79-252
and K.S.A. 1997 Supp. 74-2433 are'';
In the title, in line 9, by striking all after ``ACT''; by striking all in lines 10 and 11 and
inserting ``relating to taxation; concerning the procedures of the state board of tax appeals;
concerning certain property tax exemptions; amending K.S.A. 74-2426, 77-529, 79-201a, 79-
213, as amended by section 36 of 1998 Senate Bill No. 493, and 79-251 and K.S.A. 1997
Supp. 74-2433 and repealing the existing sections; also repealing K.S.A. 79-252.''.
The bill was further amended by motion of Senator Ranson as amended on motion of
Sen. Langworthy;
On page 7 of the amendment, in line 29, by striking ``A'' and inserting ``In the event that
a hearing is required relating to a'';
On page 8, in line 3, before ``shall'' by inserting ``it''.
Senator Feleciano moved to amend the bill as amended on motion of Senator Langworthy,
on page 1 of the amendment, in the last line by striking ``Members'' and inserting ``All
attorney members''.
The motion failed and the amendment was rejected.
Senator Lee moved to amend the bill as amended on motion of Senator Langworthy, on
page 12 of the amendment, after line three thereof, by inserting the following:
``New Sec. 7. (a) There shall be a division of the state board of tax appeals known as
the small claims division. Hearing officers appointed by the executive director shall have
authority to hear and decide cases heard in the small claims division.
(b) At the election of the taxpayer, the small claims division shall have jurisdiction over:
(1) Any appeal of a decision, finding, order or ruling of the director of taxation, except an
appeal, finding, order or ruling relating to an assessment issued pursuant to K.S.A. 79-5201 et seq., and amendments thereto, in which the amount of tax in controversy does not exceed
$10,000; (2) hearing and deciding applications for the refund of protested taxes under the
provisions of K.S.A. 79-2005, and amendments thereto, where the value of the property,
other than property devoted to agricultural use, is less than $1,000,000 as reflected on the
valuation notice or the property constitutes single family residential property; or (3) hearing
and deciding appeals from decisions rendered pursuant to the provisions of article 16 or 17
of chapter 79 of the Kansas Statutes Annotated, and acts amendatory thereof or supple-
mental thereto wherein the value of the property, other than property devoted to agricultural
use, is less than $1,000,000 as reflected on the valuation notice or the property constitutes
single family residental property.
(c) Any party may elect to appeal any application or decision referenced in subsection
(b) to the state board of tax appeals. The filing of an appeal with the small claims division
shall not be a prerequisite for filing an appeal with the state board of tax appeals under this
section. Final decisions of the small claims division may be appealed to the state board of
tax appeals. An appeal of a decision of the small claims division to the state board of tax
appeals shall be de novo.
(d) A taxpayer shall commence a proceeding in the small claims division by filing a
notice of appeal in the form prescribed by the rules of the state board of tax appeals which
shall state the nature of the taxpayer's claim. Notice of appeal shall be provided to the
appropriate unit of government named in the notice of appeal by the taxpayer. In any
valuation appeal or tax protest commenced pursuant to Articles 14 and 20 of chapter 79 of
the Kansas Statutes Annotated, and amendments thereto, the hearing shall be conducted in
the county where the property is located or a county adjacent thereto. In any appeal from
a final determination by the secretary of revenue, the hearing shall be conducted in the
county in which the taxpayer resides or a county adjacent thereto.
(e) The hearing in the small claims division shall be informal. The hearing officer may
hear any testimony and receive any evidence the hearing officer deems necessary or desir-
able for a just determination of the case. A hearing officer shall have the authority to ad-
minister oaths in all matters before the hearing officer. All testimony shall be given under
oath. A party may appear personally or may be represented by an attorney, a certified public
accountant, a certified general appraiser, a member of the taxpayer's immediate family or
an authorized employee of the taxpayer. No transcript of the proceedings shall be kept.
(f) The hearing in the small claims division shall be conducted within 60 days after the
appeal is filed in the small claims division. A decision shall be rendered by the hearing
officer within 30 days after the hearing is concluded. Documents provided by a taxpayer or
county or district appraiser shall be returned to the taxpayer or the county or district ap-
praiser by the hearing officer and shall not become a part of the board's permanent records.
Documents provided to the hearing officer shall be confidential and may not be disclosed,
except as otherwise specifically provided.
(g) With regard to any matter properly submitted to the division relating to the deter-
mination of valuation of property for taxation purposes, it shall be the duty of the county
appraiser to initiate the production of evidence to demonstrate, by a preponderance of the
evidence, the validity and correctness of such determination. No presumption shall exist in
favor of the county appraiser with respect to the validity and correctness of such determi-
nation.
New Sec. 8. (a) The hearing officers of the small claims division shall be appointed by
the executive director of the state board of tax appeals.
(b) Each hearing officer of the small claims division shall receive compensation in an
amount determined by the executive director and approved by the board.'';
And by renumbering sections accordingly.
Upon the showing of five hands a roll call vote was requested.
On roll call, the vote was: Yeas 23, nays 16, present and passing 0; absent or not voting
1.
Mr. President: This bill does not address the most significant tax appeal question--the
astonishing jump in property values across the state. It is time to reign in these automatic
tax increases. I will await a tax appeals bill that solves this serious concern.--Tim
Huelskamp
Senators Clark, Harrington, Pugh, Tyson, and Umbarger request the record to show they
concur with the ``Explanation of Vote'' offered by Senator Huelskamp on HB 2684.
S. Sub. for HB 2715, An act relating to leases of railroad lands; establishing rights, duties,
obligations and remedies for certain tenants of railroad land, as amended by adoption of
the committee report recommending a substitute bill, was considered on final action.
On roll call, the vote was: Yeas 40, nays 0, present and passing 0; absent or not voting 0.
HB 2739, An act concerning crimes, criminal procedure and punishment; amending
K.S.A. 22-4001, 22-4003, 22-4006, 22-4009, 22-4011, 22-4012, 22-4013, 22-4014 and 75-
5217 and repealing the existing sections, was considered on final action.
The bill was amended by adoption of the committee report.
The bill was further amended by motion of Senator Emert on page 6, after line 36, by
inserting the following new section:
``Sec. 11. K.S.A. 75-5217 is hereby amended to read as follows: 75-5217. (a) At any
time during release on parole, conditional release or postrelease supervision, the secretary
of corrections may issue a warrant for the arrest of a released inmate for violation of any of
the conditions of release, or a notice to appear to answer to a charge of violation. Such
notice shall be served personally upon the released inmate. The warrant shall authorize any
law enforcement officer to arrest and deliver the released inmate to a place as provided by
subsection (f). Any parole officer may arrest such released inmate without a warrant, or may
deputize any other officer with power of arrest to do so by giving such officer a written
arrest and detain order setting forth that the released inmate has, in the judgment of the
parole officer, violated the conditions of the inmate's release. The written arrest and detain
order delivered with the released inmate by the arresting officer to the official in charge of
the institution or place to which the released inmate is brought for detention shall be suf-
ficient warrant for detaining the inmate. After making an arrest the parole officer shall
present to the detaining authorities a similar arrest and detain order and statement of the
circumstances of violation. Pending hearing, as hereinafter provided, upon any charge of
violation the released inmate shall remain incarcerated in the institution or place to which
the inmate is taken for detention.
(b) Upon such arrest and detention, the parole officer shall notify the secretary of cor-
rections, or the secretary's designee, within five days and shall submit in writing a report
showing in what manner the released inmate had violated the conditions of release. After
such notification is given to the secretary of corrections, or upon an arrest by warrant as
herein provided, and the finding of probable cause pursuant to procedures established by
the secretary of a violation of the released inmate's conditions of release, the secretary shall
cause the released inmate to be brought before the Kansas parole board, its designee or
designees, for a hearing on the violation charged, under such rules and regulations as the
board may adopt. It is within the discretion of the Kansas parole board whether such hearing
requires the released inmate to appear personally before the board when such inmate's
violation results from a conviction for a new felony or misdemeanor. An inmate under determinate sentencing may waive the right to a final revocation hearing before the Kansas parole board under such conditions and terms as may be prescribed by rules and regulations of the Kansas parole board. Relevant written statements made under oath shall be admitted
and considered by the Kansas parole board, its designee or designees, along with other
evidence presented at the hearing. If the violation is established to the satisfaction of the
Kansas parole board, the board may continue or revoke the parole or conditional release,
or enter such other order as the board may see fit. Revocations of release of inmates who
are on a specified period of postrelease supervision shall be for a 180-day period of con-
finement from either the date of the revocation hearing before the board or the effective date of waiver of such hearing by the inmate pursuant to rules and regulations of the Kansas parole board, if the violation does not result from a conviction for a new felony or misde-
meanor. Such period of confinement may be reduced by not more than 90 days based on
the inmate's conduct, work and program participating during the incarceration period. The
reduction in the incarceration period shall be on an earned basis pursuant to rules and
regulations adopted by the secretary of corrections.
(c) If the violation does result from a conviction for a new felony or misdemeanor, upon
revocation the inmate shall serve the entire remaining balance of the period of postrelease
supervision even if the new conviction did not result in the imposition of a new term of
imprisonment.
(d) In the event the released inmate reaches conditional release date as provided by
K.S.A. 22-3718 and amendments thereto after a finding of probable cause, pursuant to
procedures established by the secretary of corrections of a violation of the released inmate's
conditions of release, but prior to a hearing before the Kansas parole board, the secretary
of corrections shall be authorized to detain the inmate until the hearing by the Kansas parole
board. The secretary shall then enforce the order issued by the Kansas parole board.
(e) If the secretary of corrections issues a warrant for the arrest of a released inmate
for violation of any of the conditions of release and the released inmate is subsequently
arrested in the state of Kansas, either pursuant to the warrant issued by the secretary of
corrections or for any other reason, the released inmate's sentence shall not be credited
with the period of time from the date of the issuance of the secretary's warrant to the date
of the released inmate's arrest.
If a released inmate for whom a warrant has been issued by the secretary of corrections
for violation of the conditions of release is subsequently arrested in another state, and the
released inmate has been authorized as a condition of such inmate's release to reside in or
travel to the state in which the released inmate was arrested, and the released inmate has
not absconded from supervision, the released inmate's sentence shall not be credited with
the period of time from the date of the issuance of the warrant to the date of the released
inmate's arrest. If the released inmate for whom a warrant has been issued by the secretary
of corrections for violation of the conditions of release is subsequently arrested in another
state for reasons other than the secretary's warrant and the released inmate does not have
authorization to be in the other state or if authorized to be in the other state has been
charged by the secretary with having absconded from supervision, the released inmate's
sentence shall not be credited with the period of time from the date of the issuance of the
warrant by the secretary to the date the released inmate is first available to be returned to
the state of Kansas. If the released inmate for whom a warrant has been issued by the
secretary of corrections for violation of a condition of release is subsequently arrested in
another state pursuant only to the secretary's warrant, the released inmate's sentence shall
not be credited with the period of time from the date of the issuance of the secretary's
warrant to the date of the released inmate's arrest, regardless of whether the released in-
mate's presence in the other state was authorized or the released inmate had absconded
from supervision.
The secretary may issue a warrant for the arrest of a released inmate for violation of any
of the conditions of release and may direct that all reasonable means to serve the warrant
and detain such released inmate be employed including but not limited to notifying the
federal bureau of investigation of such violation and issuance of warrant and requesting from
the federal bureau of investigation any pertinent information it may possess concerning the
whereabouts of the released inmate.
(f) Law enforcement officers shall execute warrants issued by the secretary of correc-
tions pursuant to subsection (a) or (d), and shall deliver the inmate named therein to the
jail used by the county where the inmate is arrested unless some other place is designated
by the secretary, in the same manner as for the execution of any arrest warrant.'';
And by renumbering sections accordingly;
Also on page 6, in line 38, by striking ``and'' and inserting a comma; also in line 38, after
``22-4014'' by inserting ``and 75-5217'';
On page 1, in the title, in line 15, by striking ``certain''; also in line 15 by striking ``pun-
ishments and procedures'' and inserting ``criminal procedure and punishment''; in line 17,
by striking ``and'' the first time it appears and inserting a comma; also in line 17, after
``22-4014'' by inserting ``and 75-5217''.
On roll call, the vote was: Yeas 31, nays 9, present and passing 0; absent or not voting 0.
A constitutional majority having failed to vote in favor of the bill, HB 2969 did not pass.
EXPLANATION OF VOTE
Mr. President: HB 2969 addresses a very important issue in regards to nursing care
facilities and the high turnover rates that are affecting the quality of care they offer to many
Kansans. I feel that HB 2969 is a step in the right direction, but does not adequately solve
the entire problem. For one, there are other state agencies and personal assistance organ-
izations that have the same problems as nursing care facilities in regards to high turnover
rates. Secondly, HB 2969 does not offer a viable long-term solution to the problem, but
rather a short-term attempt that only resolves the problem for one year. HB 2969 should
be reviewed and discussed over the summer where there will be the time and resources to
adequately address the needs of the nursing care communities and other personal assistance
organizations for the long-term. For this reason I vote NO on HB 2969 and hope that a
good work product will be produced over the summer and we can address it next year.--
Jim Barone
Senators Downey, Feleciano, Gooch and Goodwin request the record to show they concur
with the ``Explanation of Vote'' offered by Senator Barone on HB 2969.
HB 2993, An act concerning the state corporation commission; repealing certain statutes
relating to regulation of railroads and motor carriers; amending K.S.A. 12-1633, 12-1634,
14-434 and 15-438 and K.S.A. 1997 Supp. 66-1a01 and repealing the existing section; also
repealing K.S.A. 66-147, 66-164, 66-165, 66-169, 66-170, 66-171, 66-172, 66-1,136, 66-
1,137, 66-217, 66-218, 66-219, 66-220, 66-221, 66-222, 66-223, 66-242, 66-243, 66-250, 66-
251, 66-252, 66-253, 66-254, 66-255, 66-256, 66-257, 66-258, 66-259, 66-260, 66-261, 66-
262, 66-263, 66-264, 66-265, 66-266, 66-267, 66-268, 66-269, 66-270, 66-271, 66-272,
66-275, 66-279, 66-280, 66-281, 66-282, 66-283, 66-284, 66-2,114, 66-2,115, 66-2,116, 66-
2,117, 66-2,118, 66-312, 66-313, 66-314, 66-315, 66-317, 66-318, 66-321, 66-322, 66-323,
66-324, 66-325, 66-326, 66-401, 66-402, 66-403, 66-404, 66-405, 66-406, 66-407, 66-408,
66-409, 66-501a, 66-501b, 66-502, 66-503, 66-504, 66-505, 66-506, 66-507, 66-508, 66-509,
66-510, 66-511, 66-512, 66-513, 66-514, 66-515, 66-516, 66-517, 66-518, 66-519, 66-520,
66-601, 66-602, 66-701, 66-702, 66-703, 66-704, 66-705, 66-706, 66-707, 66-708, 66-709,
66-710, 66-711 and 66-712, was considered on final action.
On roll call, the vote was: Yeas 40, nays 0, present and passing 0; absent or not voting 0.
The House nonconcurs in Senate amendments to Senate Substitute for HB 2895,
requests a conference and has appointed Reps. Phil Kline, Farmer and Helgerson as con-
ferees on the part of the House.
Announcing the House adopts the conference committee report on HB 2233.
The House adopts the conference committee report on Substitute HB 2609.
The House adopts the conference committee report on Substitute HB 2630.
The House adopts the conference committee report on HB 2744.
The House concurs in Senate amendments to HB 2731 and requests the Senate to return
the bill.
Announcing passage ofSB 501, as amended.
INTRODUCTION OF HOUSE BILLS AND CONCURRENT RESOLUTIONS
HB 3026, 3027, 3028, 3029, 3030, 3031, 3032, 3033, 3034 were thereupon intro-
duced and read by title.
CONSIDERATION OF MOTIONS TO CONCUR OR NONCONCUR
On motion of Senator Emert the Senate nonconcurred in the House amendments to SB 514 and requested a conference committee be appointed.
The President appointed Senators Emert, Bond and Hensley as a conference committee
on the part of the Senate.
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 2895.
The President appointed Senators Kerr, Salisbury and Petty as conferees on the part of
the Senate.
MATERIALLY CHANGED
The President ruled SB 501 to be materially changed and re-referred the bill to the
Committee on Ways and Means.
On motion of Senator Emert, the Senate recessed until 4:30 p.m.
______
Afternoon Session
The Senate met pursuant to recess with Vice-President Salisbury in the chair.
REPORTS OF STANDING COMMITTEES
Committee on Federal and State Affairs recommends SB 694 be amended on page
3, following line 37, by inserting the following:
``Sec. 3. K.S.A. 1997 Supp. 41-311 is hereby amended to read as follows: 41-311. (a)
No license of any kind shall be issued pursuant to the liquor control act to a person:
(1) Who has not been a citizen of the United States for at least 10 years, except that
the spouse of a deceased retail licensee may receive and renew a retail license notwithstand-
ing the provisions of this subsection (a)(1) if such spouse is otherwise qualified to hold a
retail license and is a United States citizen or becomes a United States citizen within one
year after the deceased licensee's death;
(2) who has been convicted of a felony under the laws of this state, any other state or
the United States;
(3) who has had a license revoked for cause under the provisions of this act or who has
had any license issued under the cereal malt beverage laws of any state revoked for cause
except that a license may be issued to a person whose license was revoked for the conviction
of a misdemeanor at any time after the lapse of 10 years following the date of the revocation;
(4) who has been convicted of being the keeper or is keeping a house of prostitution or
has forfeited bond to appear in court to answer charges of being a keeper of a house of
prostitution;
(5) who has been convicted of being a proprietor of a gambling house, pandering or any
other crime opposed to decency and morality or has forfeited bond to appear in court to
answer charges for any of those crimes;
(6) who is not at least 21 years of age;
(7) who, other than as a member of the governing body of a city or county, appoints or
supervises any law enforcement officer, who is a law enforcement official or who is an
employee of the director department;
(8) who intends to carry on the business authorized by the license as agent of another;
(9) who at the time of application for renewal of any license issued under this act would
not be eligible for the license upon a first application, except as provided by subsection
(a)(12);
(10) who is the holder of a valid and existing license issued under article 27 of chapter
41 of the Kansas Statutes Annotated unless the person agrees to and does surrender the
license to the officer issuing the same upon the issuance to the person of a license under
this act, except that a retailer licensed pursuant to K.S.A. 41-2702, and amendments thereto,
shall be eligible to receive a retailer's license under the Kansas liquor control act;
(11) who does not own the premises for which a license is sought, or does not have a
written lease thereon for at least 3/4 of the period for which the license is to be issued; or
(12) whose spouse would be ineligible to receive a license under this act for any reason
other than citizenship, residence requirements or age, except that this subsection (a)(12)
shall not apply in determining eligibility for a renewal license; or
(13) who has failed to file any tax return or is not current in filing all applicable tax returns and in payment of all taxes, interest and penalties owed to the state of Kansas, excluding items under formal appeal pursuant to applicable statutes or items under a formal repayment schedule entered into with the secretary or the secretary's designee. Except as provided by federal or state law or any applicable gaming compact, nothing in this paragraph shall be construed to enhance or diminish the state's authority to impose any tax, fee, charge or assessment upon any native american tribe or any agent thereof.
(b) No retailer's license shall be issued to:
(1) A person who is not a resident of this state;
(2) a person who has not been a resident of this state for at least four years immediately
preceding the date of application;
(3) a person who has beneficial interest in the manufacture, preparation or wholesaling
of alcoholic beverages;
(4) a person who has beneficial interest in any other retail establishment licensed under
this act, except that the spouse of a licensee may own and hold a retailer's license for another
retail establishment;
(5) a copartnership, unless all of the copartners are qualified to obtain a license;
(6) a corporation; or
(7) a trust, if any grantor, beneficiary or trustee would be ineligible to receive a license
under this act for any reason, except that the provisions of subsection (a)(6) shall not apply
in determining whether a beneficiary would be eligible for a license.
(c) No manufacturer's license shall be issued to:
(1) A corporation, if any officer or director thereof, or any stockholder owning in the
aggregate more than 25% of the stock of the corporation would be ineligible to receive a
manufacturer's license for any reason other than citizenship and residence requirements;
(2) a copartnership, unless all of the copartners shall have been residents of this state
for at least five years immediately preceding the date of application and unless all the
members of the copartnership would be eligible to receive a manufacturer's license under
this act;
(3) a trust, if any grantor, beneficiary or trustee would be ineligible to receive a license
under this act for any reason, except that the provisions of subsection (a)(6) shall not apply
in determining whether a beneficiary would be eligible for a license;
(4) an individual who is not a resident of this state; or
(5) an individual who has not been a resident of this state for at least five years imme-
diately preceding the date of application.
(d) No distributor's license shall be issued to:
(1) A corporation, if any officer, director or stockholder of the corporation would be
ineligible to receive a distributor's license for any reason. It shall be unlawful for any stock-
holder of a corporation licensed as a distributor to transfer any stock in the corporation to
any person who would be ineligible to receive a distributor's license for any reason, and any
such transfer shall be null and void, except that: (A) If any stockholder owning stock in the
corporation dies and an heir or devisee to whom stock of the corporation descends by
descent and distribution or by will is ineligible to receive a distributor's license, the legal
representatives of the deceased stockholder's estate and the ineligible heir or devisee shall
have 14 months from the date of the death of the stockholder within which to sell the stock
to a person eligible to receive a distributor's license, any such sale by a legal representative
to be made in accordance with the provisions of the probate code; or (B) if the stock in any
such corporation is the subject of any trust and any trustee or beneficiary of the trust who
is 21 years of age or older is ineligible to receive a distributor's license, the trustee, within
14 months after the effective date of the trust, shall sell the stock to a person eligible to
receive a distributor's license and hold and disburse the proceeds in accordance with the
terms of the trust. If any legal representatives, heirs, devisees or trustees fail, refuse or
neglect to sell any stock as required by this subsection, the stock shall revert to and become
the property of the corporation, and the corporation shall pay to the legal representatives,
heirs, devisees or trustees the book value of the stock. During the period of 14 months
prescribed by this subsection, the corporation shall not be denied a distributor's license or
have its distributor's license revoked if the corporation meets all of the other requirements
necessary to have a distributor's license;
(2) a copartnership, unless all of the copartners are eligible to receive a distributor's
license;
(3) a trust, if any grantor, beneficiary or trustee would be ineligible to receive a license
under this act for any reason, except that the provisions of subsection (a)(6) shall not apply
in determining whether a beneficiary would be eligible for a license;
(4) an individual who is not a resident of this state; or
(5) an individual who has not been a resident of this state for at least 10 years imme-
diately preceding the date of application, except that:
(A) A wholesaler of cereal malt beverages properly licensed on September 1, 1948, shall
be eligible for a beer distributor's license; and
(B) a person who has been a resident of the state for at least one year immediately
preceding the date of application shall be eligible for a beer distributor's license.
(e) No nonbeverage user's license shall be issued to a corporation, if any officer, man-
ager or director of the corporation or any stockholder owning in the aggregate more than
25% of the stock of the corporation would be ineligible to receive a nonbeverage user's
license for any reason other than citizenship and residence requirements.
(f) No microbrewery license or farm winery license shall be issued to a:
(1) Person who is not a resident of this state;
(2) person who has not been a resident of this state for at least four years immediately
preceding the date of application;
(3) person who has beneficial interest in the manufacture, preparation or wholesaling
of alcoholic beverages other than that produced by such brewery or winery;
(4) person, copartnership or association which has beneficial interest in any retailer
licensed under this act or under K.S.A. 41-2702, and amendments thereto;
(5) copartnership, unless all of the copartners are qualified to obtain a license;
(6) corporation, unless stockholders owning in the aggregate 50% or more of the stock
of the corporation would be eligible to receive such license and all other stockholders would
be eligible to receive such license except for reason of citizenship or residency; or
(7) a trust, if any grantor, beneficiary or trustee would be ineligible to receive a license
under this act for any reason, except that the provisions of subsection (a)(6) shall not apply
in determining whether a beneficiary would be eligible for a license.
(g) The provisions of subsections (b)(1), (b)(2), (c)(3), (c)(4), (d)(3), (d)(4), (f)(1) and
(f)(2) shall not apply in determining eligibility for the 10th, or a subsequent, consecutive
renewal of a license if the applicant has appointed a citizen of the United States who is a
resident of Kansas as the applicant's agent and filed with the director secretary or the secretary's designee a duly authenticated copy of a duly executed power of attorney, au-
thorizing the agent to accept service of process from the director secretary or the secretary's designee and the courts of this state and to exercise full authority, control and responsibility
for the conduct of all business and transactions within the state relative to alcoholic liquor
and the business licensed. The agent must be satisfactory to and approved by the director, except that the director secretary or the secretary's designee. The secretary or the secretary's designee shall not approve as an agent any person who:
(1) Has been convicted of a felony under the laws of this state, any other state or the
United States;
(2) has had a license issued under the alcoholic liquor or cereal malt beverage laws of
this or any other state revoked for cause, except that a person may be appointed as an agent
if the person's license was revoked for the conviction of a misdemeanor and 10 years have
lapsed since the date of the revocation;
(3) has been convicted of being the keeper or is keeping a house of prostitution or has
forfeited bond to appear in court to answer charges of being a keeper of a house of pros-
titution;
(4) has been convicted of being a proprietor of a gambling house, pandering or any
other crime opposed to decency and morality or has forfeited bond to appear in court to
answer charges for any of those crimes; or
(5) is less than 21 years of age.
Sec. 4. K.S.A. 41-330 is hereby amended to read as follows: 41-330. After notice and
an opportunity for hearing in accordance with the provisions of the Kansas administrative
procedure act, the director secretary or the secretary's designee may refuse to issue or renew
or may revoke any license provided for by the Kansas liquor control act if:
(a) The licensee or the licensee's spouse has been convicted of a violation of intoxicating
liquor laws of any state or the alcoholic beverage control laws of the United States or has
forfeited of bond to appear in court to answer charges for any such violation, within the 10
years immediately preceding the date of application for issuance or renewal of the license
or the date of revocation; or
(b) the licensee or the licensee's spouse has been convicted of a violation of any of the
laws of any state relating to cereal malt beverages, within 10 years immediately preceding
the date of application for issuance or renewal of the license or the date of revocation.; or
(c) the licensee has failed to file any tax return or is not current in filing all applicable tax returns and in payment of all taxes, interest and penalties owed to the state of Kansas, excluding items under formal appeal pursuant to applicable statutes or items under a formal repayment schedule entered into with the secretary or the secretary's designee. Except as provided by federal or state law or any applicable gaming compact, nothing in this subsection shall be construed to enhance or diminish the state's authority to impose any tax, fee, charge or assessment upon any native american tribe or any agent thereof.
Sec. 5. K.S.A. 41-2610 is hereby amended to read as follows: 41-2610. It shall be un-
lawful for any licensee or holder of a temporary permit under this act to:
(a) Employ any person under the age of 18 years in connection with the serving of
alcoholic liquor.
(b) Employ knowingly or continue in employment any person in connection with the
dispensing or serving of alcoholic liquor or the mixing of drinks containing alcoholic liquor
who has been adjudged guilty of a felony or of any crime involving a morals charge in this
or any other state, or of the United States.
(c) Employ knowingly or to continue in employment any person in connection with the
dispensing or serving of alcoholic liquor or mixing of drinks containing alcoholic liquor who
has been adjudged guilty of a violation of any intoxicating liquor law of this or any other
state, or of the United States, during the two-year period immediately following such ad-
judging.
(d) In the case of a club, fail to maintain at the licensed premises a current list of all
members and their residence addresses or refuse to allow the director, any of the director's secretary or the secretary's authorized agents or any law enforcement officer to inspect such
list.
(e) Purchase alcoholic liquor from any person except from a person authorized by law
to sell such alcoholic liquor to such licensee or permit holder.
(f) Permit any employee of the licensee or permit holder who is under the age of 21
years to work on premises where alcoholic liquor is sold by such licensee or permit holder
at any time when not under the on-premises supervision of either the licensee or permit
holder, or an employee who is 21 years of age or over.
(g) Employ any person under 21 years of age in connection with the mixing or dispensing
of drinks containing alcoholic liquor.
(h) Fail to file any tax return or is not current in filing all applicable tax returns and in payment of all taxes, interest and penalties owed to the state of Kansas, excluding items under formal appeal pursuant to applicable statutes or items under a formal repayment schedule entered into with the secretary or the secretary's designee. Except as provided by federal or state law or any applicable gaming compact, nothing in this subsection shall be construed to enhance or diminish the state's authority to impose any tax, fee, charge or assessment upon any native american tribe or any agent thereof.
Sec. 6. K.S.A. 41-2623 is hereby amended to read as follows: 41-2623. (a) No license
shall be issued under the provisions of this act to:
(1) Any person described in subsection (a)(1), (2), (4), (5), (6), (7), (8), (9) or (12) of
K.S.A. 41-311, and amendments thereto, except that the provisions of subsection (a)(7) of
such section shall not apply to nor prohibit the issuance of a license for a class A club to an
officer of a post home of a congressionally chartered service or fraternal organization, or a
benevolent association or society thereof.
(2) A person who has had the person's license revoked for cause under the provisions
of this act.
(3) A person who has not been a resident of this state for a period of at least one year
immediately preceding the date of application.
(4) A person who has a beneficial interest in the manufacture, preparation or whole-
saling or the retail sale of alcoholic liquors or a beneficial interest in any other club, drinking
establishment or caterer licensed hereunder, except that:
(A) A license for premises located in a hotel may be granted to a person who has a
beneficial interest in one or more other clubs or drinking establishments licensed hereunder
if such other clubs or establishments are located in hotels.
(B) A license for a club or drinking establishment which is a restaurant may be issued
to a person who has a beneficial interest in other clubs or drinking establishments which
are restaurants.
(C) A caterer's license may be issued to a person who has a beneficial interest in a club
or drinking establishment and a license for a club or drinking establishment may be issued
to a person who has a beneficial interest in a caterer.
(D) A license for a class A club may be granted to an organization of which an officer,
director or board member is a distributor or retailer licensed under the liquor control act
if such distributor or retailer sells no alcoholic liquor to such club.
(E) On and after January 1, 1988, a license for a class B club or drinking establishment
may be granted to a person who has a beneficial interest in a microbrewery or farm winery
licensed pursuant to the Kansas liquor control act.
(5) A copartnership, unless all of the copartners are qualified to obtain a license.
(6) A corporation, if any officer, manager or director thereof, or any stockholder owning
in the aggregate more than 5% of the common or preferred stock of such corporation would
be ineligible to receive a license hereunder for any reason other than citizenship and resi-
dence requirements.
(7) A corporation, if any officer, manager or director thereof, or any stockholder owning
in the aggregate more than 5% of the common or preferred stock of such corporation, has
been an officer, manager or director, or a stockholder owning in the aggregate more than
5% of the common or preferred stock, of a corporation which:
(A) Has had a license revoked under the provisions of the club and drinking establish-
ment act; or
(B) has been convicted of a violation of the club and drinking establishment act or the
cereal malt beverage laws of this state.
(8) A corporation organized under the laws of any state other than this state.
(9) A trust, if any grantor, beneficiary or trustee would be ineligible to receive a license
under this act for any reason, except that the provisions of subsection (a)(6) of K.S.A. 41-
311, and amendments thereto, shall not apply in determining whether a beneficiary would
be eligible for a license.
(10) A person who has failed to file any tax return or is not current in filing all applicable tax returns and in payment of all taxes, interest and penalties owed to the state of Kansas, excluding items under formal appeal pursuant to applicable statutes or items under a formal repayment schedule entered into with the secretary or the secretary's designee. Except as provided by federal or state law or any applicable gaming compact, nothing in this paragraph shall be construed to enhance or diminish the state's authority to impose any tax, fee, charge or assessment upon any native american tribe or any agent thereof.
(b) No club or drinking establishment license shall be issued under the provisions of
the club and drinking establishment act to:
(1) A person described in subsection (a)(11) of K.S.A. 41-311, and amendments thereto.
(2) A person who is not a resident of the county in which the premises sought to be
licensed are located.'';
By renumbering sections accordingly;
Also on page 3, in line 38, following ``K.S.A.'' by inserting ``41-330, 41-2610, 41-2623
and''; also in line 38, following ``Supp.'' by inserting ``41-311 and'';
In the title, by striking all in lines 9 through 13 and inserting:
``AN ACT concerning public property and facilities; relating to the use thereof; amending
K.S.A. 41-330, 41-2610, 41-2623 and 75-3765a and K.S.A. 1997 Supp. 41-311, 41-719, as
amended by section 8 of 1998 House Bill No. 2899 and repealing the existing sections.'';
and the bill be passed as amended.
Committee on Judiciary recommends HB 2422 be amended by substituting a new bill
to be designated as ``SENATE Substitute for HOUSE BILL No. 2422,'' as follows:
``SENATE Substitute for HOUSE BILL No. 2422
By Committee on Judiciary
``AN ACT concerning corporations; relating to filing of certain documents; recording with
register of deeds; amending K.S.A. 17-1637, 17-1638, 17-2030, 17-2033, 17-2037, 17-
5545, 17-5548, 17-5556, 17-6005, 17-6204, 17-6205, 17-6206, 17-6701, 17-6702, 17-
6703, 17-6704, 17-6705, 17-6804, 17-7001, 17-7002, 17-7204 and 17-7302 and K.S.A.
1997 Supp. 17-7706 and repealing the existing sections.''; and the substitute bill be
passed.
On motion of Senator Emert the Senate adjourned until 10:00 a.m., Friday, May 1, 1998.