May 3, 1998

Journal of the Senate

SIXTY-SIXTH DAY ______

Senate Chamber Topeka, Kansas

Sunday, May 3, 1998--2:00 p.m.

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,

As we are trying to bring this session to a close,

fatigue begins to play a major part.

The President's tired of presiding

And the Houses of legislating.

The Doormen are tired of watching the doors

And the Aides are tired of aiding.

The Chairmen are tired of chairing

And the Clerks are tired of clerking.

The Leaders are tired of leading

And everyone's tired of working.

The Speaker's tired of speaking

And the Reader's tired of reading.

The Secretaries are tired of all they do

And the committees are tired of meeting.

The Researchers are tired of researching

And the lobbyists of counting votes.

The Revisors are tired of revising

And the reporters of taking notes.

It could be it is the Chaplains

Who can keep us all from staying.

So regardless of how tired others may get,

Don't let us get tired of praying!

I pray in the Name of Jesus,

AMEN

CHANGE OF REFERENCE

The President withdrew HB 2312 from the Committee on Judiciary, and referred the
bill to the Committee of the Whole.

MESSAGE FROM THE HOUSE

Announcing, the House adopts the conference committee report on SB 404.

The House adopts the conference committee report on SB 510.

The House not adopts the conference committee report on HB 2185, requests a con-
ference and appoints Representatives Mayans, Morrison and Henry as second conferees on
the part of the House.

The House not adopts the Conference Committee Report to agree to disagree on Sub-
stitute HB 2704 and the bill remains in conference.

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: SB 561

CONSIDERATION OF MOTIONS TO CONCUR OR NONCONCUR

On motion of Senator Vidricksen the Senate nonconcurred in the House amendments to
SB 561 and requested a conference committee be appointed.

The President appointed Senators Vidricksen, Jordan and Gilstrap as a conference com-
mittee on the part of the Senate.

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: SB 404,
510; HB 2868.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 404, submits the following report:

The Senate accedes to all House amendments to the bill, and your committee on con-
ference further agrees to amend the bill, as printed with House Committee of the Whole
amendments, as follows:

On page 1, by striking all in lines 18 through 43;

By striking all on page 2;

On page 3, by striking all in lines 1 through 16;

And by renumbering sections accordingly;

On page 1, in the title, in line 11, by striking all after the semicolon; by striking all in lines
12 and 13; in line 14, by striking all before ``amend-'';

And your committee on conference recommends the adoption of this report.

Tim Carmody

Terry P. Presta

Jim D. Garner

Conferees on part of House

Tim Emert

Alicia L. Salisbury

Jim Barone

Conferees on part of Senate

Senator Emert moved the Senate adopt the Conference Committee report on SB 404.

On roll call, the vote was: Yeas 40, nays 0, present and passing 0; absent or not voting 0.

Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Downey,
Emert, Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger, Harrington, Hensley, Huel-
skamp, Jones, Jordan, Karr, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Prae-
ger, Pugh, Ranson, Salisbury, Salmans, Schraad, Steffes, Steineger, Tyson, Umbarger,
Vidricksen.

The Conference Committee report was adopted.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 510, submits the following report:

The House recedes from its Committee of the Whole amendments to the bill;

The Senate accedes to the House Committee amendments to the bill;

And your committee on conference agrees to further amend the bill, as printed with
House Committee amendments, as follows:

On page 1, in line 15, before ``K.S.A.'', by inserting ``On July 1, 1998,''; also in line 15,
after ``76-729'', by inserting ``shall be and'';

On page 2, following line 37, by inserting three new sections as follows:

``Sec. 2. On July 1, 1998, K.S.A. 1997 Supp. 71-301 shall be and is hereby amended to
read as follows: 71-301. (a) The board of trustees shall charge to and collect from each
student tuition at rates per credit hour enrolled which shall be established by the board of
trustees.

(b) The board of trustees, in accordance with rules and regulations of the state board,
shall determine an amount of out-district tuition to be charged for each out-district student
attending the community college. The board of county commissioners of any county charged
with payment of out-district tuition shall levy a tax on all of the taxable property of the
county sufficient to pay all out-district tuition charges authorized by this act. The proceeds
from the tax levied under authority of this section shall be deposited in a special fund for
payment of out-district tuition. Upon receiving a statement of charges for out-district tuition,
the board of county commissioners shall allow and pay the same from the special fund
within 45 days from the receipt of such statement. If there is insufficient or no money in
the special fund, out-district tuition shall be paid from the county general fund or from the
proceeds of the sale of no-fund warrants issued for the purpose of the payment of out-
district tuition. If the board of county commissioners fails to pay such amount at the time
required under this subsection, the board of trustees shall notify the state board of such
failure to pay and shall certify to the state board the amount to be paid. Upon receipt by
the state board of such notification, the amount to be paid as certified to the state board
shall become an amount due and owing to the state board. The state board shall notify the
board of county commissioners that this amount is now due and owing to the state board.
If the board of county commissioners fails to pay such amount to the state board within 14
days of the receipt of such notification, the state board shall initiate proceedings under
K.S.A. 75-6201 et seq. for the collection of such money. Money paid to or collected by the
state board under this subsection shall be deposited in the out-district tuition suspense
account which is hereby created in the state treasury. The state board shall pay moneys
from this account, in accordance with rules and regulations of the state board, to the com-
munity colleges entitled to receive such money.

(c) The total out-district tuition charged by a community college shall be an amount
equal to the number of duly enrolled out-district students times $24 for each credit hour
of each such student.

(d) (1) Out-district tuition shall only be charged for credit hours of out-district students
if such students, as determined by the state board, have not more than 64 credit hours from
any institution of postsecondary education or the students have not more than 72 credit
hours and are enrolled in terminal type nursing courses or freshman-sophomore level preen-
gineering courses.

(2) The credit hour limitations prescribed by provision (1) of this subsection do not
apply to credit hours of out-district students if such students, as determined by the state
board, are enrolled in an approved vocational education program at a community college
for the purpose of receiving vocational or technical training or retraining in preparation for
gainful employment.

(3) The provisions of this subsection shall expire on June 30, 1999.

(e) In May of each fiscal year, the board of trustees shall notify the board of county
commissioners of the approximate amount of out-district tuition which will be charged to
the county in the succeeding fiscal year.

(f) Expenditures for out-district tuition shall be exempt from the budget law of this state
to the extent of such payments not anticipated in the budget of the county.

Sec. 3. K.S.A. 1997 Supp. 71-609 is hereby amended to read as follows: 71-609. (a) No
out-district tuition charges, no out-district state aid entitlement, no credit-hour state aid
entitlement, and no general state aid entitlement shall be based upon credit hours in any
subject or course the principal part of which is taught at a location outside the county of
the main campus of the community college, unless the location of such subject or course is
specifically authorized by the state board of education.

(b) (1) No out-district tuition charges and no out-district state aid entitlement shall be
based upon credit hours in any subject or course which is taught in a county in which the
main campus of a state educational institution is located, unless the teaching of such subject
or course is specifically authorized by the chief executive officer of the state educational
institution or by a designee of the chief executive officer. The chief executive officer of each
state educational institution may designate and authorize a person or committee to act on
behalf of the chief executive officer in granting the authorizations required by this subsec-
tion. No authorization required by this subsection shall be considered to be or construed in
any manner as an agreement provided for by subsection (c).

(2) For the purposes of this subsection, the term ``main campus of a state educational
institution'' as applied to Kansas state university of agriculture and applied science means
and includes the campus of the university located in Riley county and the campus of the
university's college of technology located in Saline county.

(3) The provisions of this subsection are subject to the provisions of subsection (c).

(c) (1) No out-district tuition charges shall be based upon credit hours in any subject
or course all or the principal part of which is taught at Fort Hays state university or at
Wichita state university under an agreement for the teaching of such subject or course
entered into by a community college and either such university. An agreement entered into
under the provisions of this subsection for the teaching of a subject or course by a community
college at Fort Hays state university or at Wichita state university shall constitute the au-
thorization required by subsection (b) for the teaching of such subject or course, and no
separate authorization under subsection (b) shall be required.

(2) The provisions of this subsection shall expire on June 30, ~~1998~~ 2000, unless amended
by act of the legislature prior to such date.

Sec. 4. K.S.A. 1997 Supp. 71-609 is hereby repealed.'';

By renumbering sections 2 and 3 as sections 5 and 6, respectively;

Also on page 2, in line 38, before ``K.S.A.'', by inserting ``On July 1, 1998,''; also in line
38, by striking ``is'' and inserting ``and K.S.A. 1997 Supp. 71-301 shall be and are''; in line
40, by striking ``statute book'' and inserting ``Kansas register'';

In the title, in line 10, after ``concerning'', by inserting ``higher education; affecting resi-
dence requirements for students enrolling at''; also in line 10, after the semicolon, by in-
serting ``providing for expiration of certain limitations upon determination of out-district
tuition and state aid for community colleges;''; also in line 10, by striking ``resi-''; in line 11,
by striking all before the semicolon and inserting ``subjects and courses taught by community
colleges under agreements with certain state educational institutions''; also in line 11, after
``and'', by inserting ``K.S.A. 1997 Supp. 71-301 and 71-609 and''; in line 12, by striking
``section'' and inserting ``sections'';

And your committee on conference recommends the adoption of this report.

Eugene L. Shore

Cindy Empson

Bill Reardon

Conferees on part of House

Barbara Lawrence

Audrey Langworthy

Anthony Hensley

Conferees on part of Senate

Senator Lawrence moved the Senate adopt the Conference Committee report on SB
510.

On roll call, the vote was: Yeas 39, nays 1, present and passing 0; absent or not voting 0.

Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Downey,
Emert, Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger, Harrington, Hensley, Huel-
skamp, Jones, Jordan, Karr, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Prae-
ger, Pugh, Ranson, Salmans, Schraad, Steffes, Steineger, Tyson, Umbarger, Vidricksen.

Nays: Salisbury.

The Conference Committee report was adopted.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2868, 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 5, after line 19, by inserting:

``New Sec. 3. (a) As used in this section:

(1) ``Kansas river reach'' means all land owned by the state of Kansas in the Kansas river
channel up to the ordinary high water mark within the designated reach. In cases where
the state's ownership interest is affected by avulsion, ownership will be determined pursuant
to K.S.A. 82a-201 et seq. and amendments thereto.

(2) ``Multi-use reach'' means a reach of the Kansas river where any use authorized or
not prohibited by law is allowed.

(3) ``Recreational use reach'' means a reach of the Kansas river where commercial and
industrial activities that require a permit pursuant to K.S.A. 82a-301 et seq., and amend-
ments thereto are prohibited except for public water supplies, wastewater and stormwater
outfalls, electric utilities, flood control and drainage works, bridges, buried transmission lines
and pipelines or, if approved by the army corps of engineers, dredging on a temporary basis
to reduce risk of flooding.

(4) ``River miles'' means river miles officially designated by the United States army corps
of engineers in the Emergency Flood Plan, Kansas River, Mouth to Junction City, file num-
ber EM-1-420, March 1977, revised April, 1986.

(b) (1) The following are hereby designated as multi-use reaches on the Kansas river:
River mile 0 to river mile 51.8 and river mile 72 to river mile 125.

(2) The following are hereby designated as recreational use reaches on the Kansas river:
River mile 51.8 to river mile 72 and river mile 125 to river mile 170.4.

New Sec. 4. Any person who commits any of the following along the Kansas river shall
be subject to prosecution: Criminal trespass as defined by K.S.A. 21-3721 and amendments
thereto; littering, as defined by K.S.A. 21-3722 and amendments thereto; injury to a do-
mestic animal, as defined by K.S.A. 21-3727 and amendments thereto; criminal hunting, as
defined by K.S.A. 21-3728 and amendments thereto; obstructing, injuring, damaging or
destroying property in violation of K.S.A. 24-636 and amendments thereto; or any other
violation of law.

New Sec. 5. Before causing any public access, boating facilities, ramps or docks to be
built on the Kansas river within or adjacent to any drainage district bounding the Kansas
river, the secretary of wildlife and parks shall obtain written approval of the proposed project
from:

(a) Such drainage district; or

(b) the owner of the property directly affected by the location of such public access,
boating facilities, ramps or docks and, if such property is leased, the lessee.'';

By renumbering the remaining sections accordingly;

In the title, in line 10, by striking ``wildlife'' and inserting ``recreational activities''; in line
12, before ``amending'' by inserting ``designating certain reaches of the Kansas river for
certain purposes; relating to prosecution for certain crimes committed along the Kansas
river; concerning certain improvements on the Kansas river;'';

And your committee on conference recommends the adoption of this report.

David R. Corbin

Stephen R. Morris

Donald E. Briggs

Conferees on part of Senate

Joann Lee Freeborn

Dan Johnson

Laura Lee McClure

Conferees on part of House

Senator Corbin moved the Senate adopt the Conference Committee report on HB 2868.

On roll call, the vote was: Yeas 16, nays 24, present and passing 0; absent or not voting
0.

Yeas: Biggs, Bond, Downey, Emert, Gooch, Hensley, Karr, Langworthy, Lee, Morris,
Oleen, Petty, Praeger, Salisbury, Steffes, Steineger.

Nays: Barone, Becker, Bleeker, Brownlee, Clark, Corbin, Donovan, Feleciano, Gilstrap,
Goodwin, Hardenburger, Harrington, Huelskamp, Jones, Jordan, Kerr, Lawrence, Pugh,
Ranson, Salmans, Schraad, Tyson, Umbarger, Vidricksen.

The Conference Committee report was not adopted.

EXPLANATION OF VOTE Mr. President: I would like to explain my vote. In order to best express my concerns
about this particular piece of legislation I will quote from ``Separations of Power'' by Shelby
Smith, former Lt. Governor, Legislator, Secretary of Administration and long-time state
government watcher:

``II. Concerns

Legislators are trying to run agencies, and micro-manage programs instead of de-
veloping policy, goals and objectives. In the process, they are blurring the lines of
separate and co-equal branches of government. Two flaws emerge: one, divided
authority is counter productive to efficiency, and two, abuse of power.''

To me this typifies many of the concerns expressed. I must vote No.--Jim Barone

Having voted on the prevailing side, Senator Corbin moved the senate reconsider its
action on HB 2868. The motion carried.

Senator Corbin moved the Senate not adopt the Conference Committee Report on HB
2868, and requested a new conference committee be appointed.

The motion carried and the President appointed Senators Corbin, Morris and Biggs as
second conferees on the part of the senate on HB 2868.

REPORT ON ENGROSSED BILLS

H. Sub. SB 671 reported correctly engrossed May 3, 1998.

Also, SB 449, 554 correctly re-engrossed May 3, 1998.

REPORT ON ENROLLED BILLS

SR 1865 reported correctly enrolled, properly signed and presented to the Secretary of
the Senate on May 3, 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: S. Sub.
HB 2860; HB 3016.

FINAL ACTION OF BILLS AND CONCURRENT RESOLUTIONS

On motion of Senator Emert an emergency was declared by a 2
3/ constitutional majority,
and S. Sub. HB 2860; HB 3016 were advanced to Final Action, subject to amendment,
debate and roll call.

S. SUB. for HB 2860, An act concerning the open meetings law; amending K.S.A. 75-
4317a and repealing the existing section, as amended by adoption of the committee report
recommending a substitute bill, was considered on final action.

An amendment to S. Sub. HB 2860, offered by Senator Hardenburger was withdrawn.

The substitute bill was then amended by motion of Senator Hardenburger on page 1, in
line 24, following the period, by inserting ``It shall be against the public policy of this state
for any such series of gatherings, assemblies, telephone calls or any other means of inter-
active communications to be held for the purpose of subverting the policy of open public
meetings as stated in K.S.A. 75-4317, and amendments thereto.''

On roll call, the vote was: Yeas 32, nays 8, present and passing 0; absent or not voting 0.

Yeas: Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Downey, Emert,
Gooch, Goodwin, Hardenburger, Harrington, Huelskamp, Jordan, Kerr, Langworthy,
Lawrence, Morris, Oleen, Praeger, Pugh, Ranson, Salisbury, Salmans, Schraad, Steffes, Stei-
neger, Tyson, Umbarger, Vidricksen.

Nays: Barone, Feleciano, Gilstrap, Hensley, Jones, Karr, Lee, Petty.

The substitute bill passed, as amended.

HB 3016, An act relating to taxation; concerning treatment of sales of prepaid telephone
calling cards; amending the Kansas estate tax act; amending K.S.A. 79-32111, 79-3602, as
amended by section 29 of 1998 Senate Bill No. 493, 79-3603, as amended by section 30 of
1998, and section 1 of 1998 Senate Bill No. 493 and repealing the existing sections; also
repealing K.S.A. 79-1546, was considered on final action.

The bill was amended by adoption of the committee amendments.

The bill was further amended by motion of Senator Langworthy on page 14, after line
41, by inserting a new section to read as follows:

``Sec. 4. K.S.A. 79-32,111 is hereby amended to read as follows: 79-32,111. (a) The
amount of income tax paid to another state by a resident individual, resident estate or
resident trust on income derived from sources in another state shall be allowed as a credit
against the tax computed under the provisions of this act. Such credit shall not be greater
in proportion to the tax computed under this act than the adjusted gross income for such
year derived in another state while such taxpayer is a resident of this state is to the total
Kansas adjusted gross income of the taxpayer. As used in this subsection, state shall have
the meaning ascribed thereto by subsection (h) of K.S.A. 79-3271, and amendments thereto.
The credit allowable hereunder for income tax paid to a foreign country or political subdi-
vision thereof shall not exceed the difference of such income tax paid less the credit allowable
for such income tax paid by the federal internal revenue code. No redetermination of income
tax paid for the purposes of determining the credit allowed by this subsection shall be re-
quired for the taxable year for which an income tax refund payment pursuant to the pro-
visions of section 18 of article 10 of the Missouri constitution is made, but the income tax
paid allowable for credit in the next following taxable year shall be reduced by the amount
of such refund amount, except that, for tax year 1998, the income tax paid allowable for
credit shall be reduced by the amount of such refunds made for all taxable years prior to
tax year 1998.

(b) There shall be allowed as a credit against the tax computed under the provisions of
the Kansas income tax act, and acts amendatory thereof and supplemental thereto, on the
Kansas taxable income of an individual, corporation or fiduciary the amount determined
under the provisions of K.S.A. 79-32,153 to 79-32,158, and amendments thereto.'';

By renumbering existing sections accordingly;

Also, on page 14, in line 42, after the first comma, by inserting ``79-32,111,'';

In the title, in line 12, after ``K.S.A.'' by inserting ``79-32,111,''.

On roll call, the vote was: Yeas 40, nays 0, present and passing 0; absent or not voting 0.

Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Downey,
Emert, Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger, Harrington, Hensley, Huel-
skamp, Jones, Jordan, Karr, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Prae-
ger, Pugh, Ranson, Salisbury, Salmans, Schraad, Steffes, Steineger, Tyson, Umbarger,
Vidricksen.

The bill passed, as amended.

MESSAGE FROM THE HOUSE

Announcing, the House adopts the conference committee report on SB 516.

The House adopts the Conference Committee Report to agree to disagree on SB 6 and
has appointed Representatives Phill Kline, Powell and Larkin as second conferees on the
part of the House.

The House accedes to the request of the Senate for a conference on SB 561 and has
appointed Representatives Hayzlett, Gilmore and Dillon as conferees on the part of the
House.

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: SB 6,
516; HB 2627, 2684, 2726.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 6, submits the following report:

Your committee on conference agrees to disagree and recommends that a new conference
committee be appointed;

And your committee on conference recommends the adoption of this report.

Phill Kline

Tony Powell

Bruce Larkin

Conferees on part of House

Audrey Langworthy

David R. Corbin

Janis K. Lee

Conferees on part of Senate

On motion of Senator Langworthy, the Senate adopted the conference committee report
on SB 6, and requested a new conference committee be appointed.

The President appointed Senators Langworthy, Corbin and Lee as a second conference
committee on the part of the Senate on SB 6.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 516, submits the following report:

The Senate accedes to all House amendments to the bill, and your committee on con-
ference further agrees to amend the bill, as printed with House Committee of the Whole
amendments, as follows:

On page 7, in line 43, after ``crimes'' by inserting ``or in grid blocks 3-E, 3-F, 3-G, 3-H,
3-I, 4-E or 4-F of the sentencing guidelines grid for drug crimes'';

On page 8, in line 3, after ``crimes'' by inserting ``or in grid blocks 3-E, 3-F, 3-G, 3-H, 3-
I, 4-E or 4-F of the sentencing guidelines grid for drug crimes ``; in line 5, by striking ``and''
and inserting a comma; in line 7, after ``thereto'' by inserting ``or a community intermediate
sanction center''; in line 8, after ``camp'' by inserting ``or a community intermediate sanction
center''; in line 9, after ``camp's'' by inserting ``or a community intermediate sanction cen-
ter's''; in line 11, after ``camp'' by inserting ``or a community intermediate sanction center'';

On page 9, by striking all in lines 27 through 43;

On page 10, by striking all in lines 1 through 14 and inserting the following new sections:

``Sec. 3. K.S.A. 1997 Supp. 22-3717 is hereby amended to read as follows: 22-3717. (a)
Except as otherwise provided by this section, K.S.A. 1993 Supp. 21-4628 prior to its repeal
and K.S.A. 21-4635 through 21-4638 and amendments thereto, an inmate, including an
inmate sentenced pursuant to K.S.A. 21-4618 and amendments thereto, shall be eligible for
parole after serving the entire minimum sentence imposed by the court, less good time
credits.

(b) (1) Except as provided by K.S.A. 21-4635 through 21-4638 and amendments
thereto, an inmate sentenced to imprisonment for the crime of capital murder, or an inmate
sentenced for the crime of murder in the first degree based upon a finding of premeditated
murder, committed on or after July 1, 1994, shall be eligible for parole after serving 25 years
of confinement, without deduction of any good time credits.

(2) Except as provided by subsection (b)(1) or (b)(4), K.S.A. 1993 Supp. 21-4628 prior
to its repeal and K.S.A. 21-4635 through 21-4638, and amendments thereto, an inmate
sentenced to imprisonment for an off-grid offense committed on or after July 1, 1993, shall
be eligible for parole after serving 15 years of confinement, without deduction of any good
time credits.

(3) Except as provided by K.S.A. 1993 Supp. 21-4628 prior to its repeal, an inmate
sentenced for a class A felony committed before July 1, 1993, including an inmate sentenced
pursuant to K.S.A. 21-4618 and amendments thereto, shall be eligible for parole after serving
15 years of confinement, without deduction of any good time credits.

(4) An inmate sentenced to imprisonment for a violation of subsection (a) of K.S.A. 21-
3402 and amendments thereto committed on or after July 1, 1996, shall be eligible for
parole after serving 10 years of confinement without deduction of any good time credits.

(c) Except as provided in subsection (e), if an inmate is sentenced to imprisonment for
more than one crime and the sentences run consecutively, the inmate shall be eligible for
parole after serving the total of:

(1) The aggregate minimum sentences, as determined pursuant to K.S.A. 21-4608 and
amendments thereto, less good time credits for those crimes which are not class A felonies;
and

(2) an additional 15 years, without deduction of good time credits, for each crime which
is a class A felony.

(d) (1) Persons sentenced for crimes, other than off-grid crimes, committed on or after
July 1, 1993, will not be eligible for parole, but will be released to a mandatory period of
postrelease supervision upon completion of the prison portion of their sentence as follows:

(A) Except as provided in subparagraphs (C) and (D), persons sentenced for nondrug
severity level 1 through 6 crimes and drug severity levels 1 through 3 crimes must serve 36
months, plus the amount of good time earned and retained pursuant to K.S.A. 21-4722 and
amendments thereto, on postrelease supervision.

(B) Except as provided in subparagraphs (C) and (D), persons sentenced for nondrug
severity level 7 through 10 crimes and drug severity level 4 crimes must serve 24 months,
plus the amount of good time earned and retained pursuant to K.S.A. 21-4722 and amend-
ments thereto, on postrelease supervision.

(C) (i) The sentencing judge shall impose the postrelease supervision period provided
in subparagraph (d)(1)(A) or (d)(1)(B), unless the judge finds substantial and compelling
reasons to impose a departure based upon a finding that the current crime of conviction
was sexually violent or sexually motivated. In that event, departure may be imposed to extend
the postrelease supervision to a period of up to 60 months.

(ii) If the sentencing judge departs from the presumptive postrelease supervision period,
the judge shall state on the record at the time of sentencing the substantial and compelling
reasons for the departure. Departures in this section are subject to appeal pursuant to K.S.A.
21-4721 and amendments thereto.

(iii) In determining whether substantial and compelling reasons exist, the court shall
consider:

(a) Written briefs or oral arguments submitted by either the defendant or the state;

(b) any evidence received during the proceeding;

(c) the presentence report, the victim's impact statement and any psychological evalu-
ation as ordered by the court pursuant to subsection (e) of K.S.A. 21-4714 and amendments
thereto; and

(d) any other evidence the court finds trustworthy and reliable.

(iv) The sentencing judge may order that a psychological evaluation be prepared and
the recommended programming be completed by the offender. The department of correc-
tions or the parole board shall ensure that court ordered sex offender treatment be carried
out.

(v) In carrying out the provisions of subparagraph (d)(1)(C), the court shall refer to
K.S.A. 21-4718 and amendments thereto.

(vi) Upon petition, the parole board may provide for early discharge from the post-
release supervision period upon completion of court ordered programs and completion of
the presumptive postrelease supervision period, as determined by the crime of conviction,
pursuant to subparagraph (d)(1)(A) or (B). Early discharge from postrelease supervision is
at the discretion of the parole board.

(vii) Persons convicted of crimes deemed sexually violent or sexually motivated, shall
be registered according to the habitual sex offender registration act, K.S.A. 22-4901 through
22-4910 and amendments thereto.

(D) The period of postrelease supervision provided in subparagraphs (A) and (B) may
be reduced by up to 12 months based on the offender's compliance with conditions of
supervision and overall performance while on postrelease supervision. The reduction in the
supervision period shall be on an earned basis pursuant to rules and regulations adopted by
the secretary of corrections.

(E) In cases where sentences for crimes from more than one severity level have been
imposed, ~~the highest severity level offense will dictate the~~ the offender shall serve the longest
period of postrelease supervision as provided by this section available for any crime upon
which sentence was imposed irrespective of the severity level of the crime. Supervision per-
iods will not aggregate.

(2) As used in this section, ``sexually violent crime'' means:

(A) Rape, K.S.A. 21-3502, and amendments thereto;

(B) indecent liberties with a child, K.S.A. 21-3503, and amendments thereto;

(C) aggravated indecent liberties with a child, K.S.A. 21-3504, and amendments thereto;

(D) criminal sodomy, subsection (a)(2) and (a)(3) of K.S.A. 21-3505 and amendments
thereto;

(E) aggravated criminal sodomy, K.S.A. 21-3506, and amendments thereto;

(F) indecent solicitation of a child, K.S.A. 21-3510, and amendments thereto;

(G) aggravated indecent solicitation of a child, K.S.A. 21-3511, and amendments
thereto;

(H) sexual exploitation of a child, K.S.A. 21-3516, and amendments thereto;

(I) aggravated sexual battery, K.S.A. 21-3518, and amendments thereto;

(J) any conviction for a felony offense in effect at any time prior to the effective date
of this act, that is comparable to a sexually violent crime as defined in subparagraphs (A)
through (I), or any federal or other state conviction for a felony offense that under the laws
of this state would be a sexually violent crime as defined in this section;

(K) an attempt, conspiracy or criminal solicitation, as defined in K.S.A. 21-3301, 21-
3302, 21-3303, and amendments thereto, of a sexually violent crime as defined in this sec-
tion; or

(L) any act which at the time of sentencing for the offense has been determined beyond
a reasonable doubt to have been sexually motivated. As used in this subparagraph, ``sexually
motivated'' means that one of the purposes for which the defendant committed the crime
was for the purpose of the defendant's sexual gratification.

(e) If an inmate is sentenced to imprisonment for a crime committed while on parole
or conditional release, the inmate shall be eligible for parole as provided by subsection (c),
except that the Kansas parole board may postpone the inmate's parole eligibility date by
assessing a penalty not exceeding the period of time which could have been assessed if the
inmate's parole or conditional release had been violated for reasons other than conviction
of a crime.

(f) If a person is sentenced to prison for a crime committed on or after July 1, 1993,
while on probation, parole, conditional release or in a community corrections program, for
a crime committed prior to July 1, 1993, and the person is not eligible for retroactive
application of the sentencing guidelines and amendments thereto pursuant to K.S.A. 21-
4724 and amendments thereto, the new sentence shall not be aggregated with the old
sentence, but shall begin when the person is paroled or reaches the conditional release date
on the old sentence. If the offender was past the offender's conditional release date at the
time the new offense was committed, the new sentence shall not be aggregated with the
old sentence but shall begin when the person is ordered released by the Kansas parole board
or reaches the maximum sentence expiration date on the old sentence, whichever is earlier.
The new sentence shall then be served as otherwise provided by law. The period of post-
release supervision shall be based on the new sentence, except that those offenders whose
old sentence is a term of imprisonment for life, imposed pursuant to K.S.A. 1993 Supp. 21-
4628 prior to its repeal, or an indeterminate sentence with a maximum term of life impris-
onment, for which there is no conditional release or maximum sentence expiration date,
shall remain on postrelease supervision for life or until discharged from supervision by the
Kansas parole board.

(g) Subject to the provisions of this section, the Kansas parole board may release on
parole those persons confined in institutions who are eligible for parole when: (1) The board
believes that the inmate should be released for hospitalization, for deportation or to answer
the warrant or other process of a court and is of the opinion that there is reasonable prob-
ability that the inmate can be released without detriment to the community or to the inmate;
or (2) the secretary of corrections has reported to the board in writing that the inmate has
satisfactorily completed the programs required by any agreement entered under K.S.A.
75-5210a and amendments thereto, or any revision of such agreement, and the board be-
lieves that the inmate is able and willing to fulfill the obligations of a law abiding citizen
and is of the opinion that there is reasonable probability that the inmate can be released
without detriment to the community or to the inmate. Parole shall not be granted as an
award of clemency and shall not be considered a reduction of sentence or a pardon.

(h) The Kansas parole board shall hold a parole hearing at least the month prior to the
month an inmate will be eligible for parole under subsections (a), (b) and (c). At least the
month preceding the parole hearing, the county or district attorney of the county where the
inmate was convicted shall give written notice of the time and place of the public comment
sessions for the inmate to any victim of the inmate's crime who is alive and whose address
is known to the county or district attorney or, if the victim is deceased, to the victim's family
if the family's address is known to the county or district attorney. Except as otherwise
provided, failure to notify pursuant to this section shall not be a reason to postpone a parole
hearing. In the case of any inmate convicted of a class A felony the secretary of corrections
shall give written notice of the time and place of the public comment session for such inmate
at least one month preceding the public comment session to any victim of such inmate's
crime or the victim's family pursuant to K.S.A. 74-7338 and amendments thereto. If noti-
fication is not given to such victim or such victim's family in the case of any inmate convicted
of a class A felony, the board shall postpone a decision on parole of the inmate to a time at
least 30 days after notification is given as provided in this section. Nothing in this section
shall create a cause of action against the state or an employee of the state acting within the
scope of the employee's employment as a result of the failure to notify pursuant to this
section. If granted parole, the inmate may be released on parole on the date specified by
the board, but not earlier than the date the inmate is eligible for parole under subsections
(a), (b) and (c). At each parole hearing and, if parole is not granted, at such intervals there-
after as it determines appropriate, the Kansas parole board shall consider: (1) Whether the
inmate has satisfactorily completed the programs required by any agreement entered under
K.S.A. 75-5210a and amendments thereto, or any revision of such agreement; and (2) all
pertinent information regarding such inmate, including, but not limited to, the circum-
stances of the offense of the inmate; the presentence report; the previous social history and
criminal record of the inmate; the conduct, employment, and attitude of the inmate in
prison; the reports of such physical and mental examinations as have been made; comments
of the victim and the victim's family; comments of the public; official comments; and capacity
of state correctional institutions.

(i) In those cases involving inmates sentenced for a crime committed after July 1, 1993,
the parole board will review the inmates proposed release plan. The board may schedule a
hearing if they desire. The board may impose any condition they deem necessary to insure
public safety, aid in the reintegration of the inmate into the community, or items not com-
pleted under the agreement entered into under K.S.A. 75-5210a and amendments thereto.
The board may not advance or delay an inmate's release date. Every inmate while on post-
release supervision shall remain in the legal custody of the secretary of corrections and is
subject to the orders of the secretary.

(j) Before ordering the parole of any inmate, the Kansas parole board shall have the
inmate appear before either in person or via a video conferencing format and shall interview
the inmate unless impractical because of the inmate's physical or mental condition or ab-
sence from the institution. Every inmate while on parole shall remain in the legal custody
of the secretary of corrections and is subject to the orders of the secretary. Whenever the
Kansas parole board formally considers placing an inmate on parole and no agreement has
been entered into with the inmate under K.S.A. 75-5210a and amendments thereto, the
board shall notify the inmate in writing of the reasons for not granting parole. If an agree-
ment has been entered under K.S.A. 75-5210a and amendments thereto and the inmate has
not satisfactorily completed the programs specified in the agreement, or any revision of such
agreement, the board shall notify the inmate in writing of the specific programs the inmate
must satisfactorily complete before parole will be granted. If parole is not granted only
because of a failure to satisfactorily complete such programs, the board shall grant parole
upon the secretary's certification that the inmate has successfully completed such programs.
If an agreement has been entered under K.S.A. 75-5210a and amendments thereto and the
secretary of corrections has reported to the board in writing that the inmate has satisfactorily
completed the programs required by such agreement, or any revision thereof, the board
shall not require further program participation. However, if the board determines that other
pertinent information regarding the inmate warrants the inmate's not being released on
parole, the board shall state in writing the reasons for not granting the parole. If parole is
denied for an inmate sentenced for a crime other than a class A or class B felony or an
off-grid felony, the board shall hold another parole hearing for the inmate not later than
one year after the denial unless the parole board finds that it is not reasonable to expect
that parole would be granted at a hearing if held in the next three years or during the interim
period of a deferral. In such case, the parole board may defer subsequent parole hearings
for up to three years but any such deferral by the board shall require the board to state the
basis for its findings. If parole is denied for an inmate sentenced for a class A or class B
felony or an off-grid felony, the board shall hold another parole hearing for the inmate not
later than three years after the denial unless the parole board finds that it is not reasonable
to expect that parole would be granted at a hearing if held in the next 10 years or during
the interim period of a deferral. In such case, the parole board may defer subsequent parole
hearings for up to 10 years but any such deferral shall require the board to state the basis
for its findings.

(k) Parolees and persons on postrelease supervision shall be assigned, upon release, to
the appropriate level of supervision pursuant to the criteria established by the secretary of
corrections.

(l) The Kansas parole board shall adopt rules and regulations in accordance with K.S.A.
77-415 et seq., and amendments thereto, not inconsistent with the law and as it may deem
proper or necessary, with respect to the conduct of parole hearings, postrelease supervision
reviews, revocation hearings, orders of restitution, reimbursement of expenditures by the
state board of indigents' defense services and other conditions to be imposed upon parolees
or releasees. Whenever an order for parole or postrelease supervision is issued it shall recite
the conditions thereof.

(m) Whenever the Kansas parole board orders the parole of an inmate or establishes
conditions for an inmate placed on postrelease supervision, the board:

(1) Unless it finds compelling circumstances which would render a plan of payment
unworkable, shall order as a condition of parole or postrelease supervision that the parolee
or the person on postrelease supervision pay any transportation expenses resulting from
returning the parolee or the person on postrelease supervision to this state to answer criminal
charges or a warrant for a violation of a condition of probation, assignment to a community
correctional services program, parole, conditional release or postrelease supervision;

(2) to the extent practicable, shall order as a condition of parole or postrelease super-
vision that the parolee or the person on postrelease supervision make progress towards or
successfully complete the equivalent of a secondary education if the inmate has not previ-
ously completed such educational equivalent and is capable of doing so;

(3) may order that the parolee or person on postrelease supervision perform community
or public service work for local governmental agencies, private corporations organized
not-for-profit or charitable or social service organizations performing services for the com-
munity;

(4) may order the parolee or person on postrelease supervision to pay the administrative
fee imposed pursuant to K.S.A. 1997 Supp. 22-4529 unless the board finds compelling
circumstances which would render payment unworkable; and

(5) unless it finds compelling circumstances which would render a plan of payment
unworkable, shall order that the parolee or person on postrelease supervision reimburse the
state for all or part of the expenditures by the state board of indigents' defense services to
provide counsel and other defense services to the person. In determining the amount and
method of payment of such sum, the parole board shall take account of the financial re-
sources of the person and the nature of the burden that the payment of such sum will
impose. Such amount shall not exceed the amount claimed by appointed counsel on the
payment voucher for indigents' defense services or the amount prescribed by the board of
indigents' defense services reimbursement tables as provided in K.S.A. 22-4522 and amend-
ments thereto, whichever is less, minus any previous payments for such services.

(n) If the court which sentenced an inmate specified at the time of sentencing the
amount and the recipient of any restitution ordered as a condition of parole or postrelease
supervision, the Kansas parole board shall order as a condition of parole or postrelease
supervision that the inmate pay restitution in the amount and manner provided in the journal
entry unless the board finds compelling circumstances which would render a plan of resti-
tution unworkable.

(o) Whenever the Kansas parole board grants the parole of an inmate, the board, within
10 days of the date of the decision to grant parole, shall give written notice of the decision
to the county or district attorney of the county where the inmate was sentenced.

(p) When an inmate is to be released on postrelease supervision, the secretary, within
30 days prior to release, shall provide the county or district attorney of the county where
the inmate was sentenced written notice of the release date.

(q) Inmates shall be released on postrelease supervision upon the termination of the
prison portion of their sentence. Time served while on postrelease supervision will vest.

(r) An inmate who is allocated regular good time credits as provided in K.S.A. 22-3725
and amendments thereto may receive meritorious good time credits in increments of not
more than 90 days per meritorious act. These credits may be awarded by the secretary of
corrections when an inmate has acted in a heroic or outstanding manner in coming to the
assistance of another person in a life threatening situation, preventing injury or death to a
person, preventing the destruction of property or taking actions which result in a financial
savings to the state.

Sec. 4. 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, has 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 sufficient 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 a hearing, as ~~hereinafter~~ provided in this section, 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. Relevant written state-
ments 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~~ six-month period of confinement from the date of the revocation
hearing before the board, if the violation does not result from a conviction for a new felony
or misdemeanor. Such period of confinement may be reduced by not more than ~~90 days~~ 3
months based on the inmate's conduct, work and program participating during the incar-
ceration period. The reduction in the incarceration period shall be on an earned basis pur-
suant 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~~ in the
warrant 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 war-
rant.'';

And by renumbering sections accordingly;

Also on page 10, by striking all in lines 38 through 43;

By striking all on pages 11 and 12;

On page 13, by striking all in lines 1 through 18;

And by renumbering sections accordingly;

Also on page 13, in line 19, after ``K.S.A.'' the first time it appears, by inserting ``75-5217,'';
in line 20, by striking ``38-1604 and 38-1624'' and inserting ``22-3717'';

On page 1, in the title, in line 13, after ``to'' by inserting ``authorized dispositions;''; in line
15, by striking ``relating to juveniles'' and inserting ``postrelease supervision; violations of
conditions of release''; also in line 15, after ``K.S.A.'' by inserting ``75-5217,''; in line 16, by
striking ``38-''; in line 17, by striking ``1604 and 38-1624'' and inserting ``22-3717'';

And your committee on conference recommends the adoption of this report.

Tim Carmody

Terry P. Presta

Jim D. Garner

Conferees on part of House

Tim Emert

Edward W. Pugh

Greta Goodwin

Conferees on part of Senate

Senator Emert moved the Senate adopt the Conference Committee report on SB 516.

On roll call, the vote was: Yeas 39, nays 1, present and passing 0; absent or not voting 0.

Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Downey,
Emert, Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger, Harrington, Hensley, Huel-
skamp, Jones, Jordan, Karr, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Prae-
ger, Ranson, Salisbury, Salmans, Schraad, Steffes, Steineger, Tyson, Umbarger, Vidricksen.

Nays: Pugh.

The Conference Committee report was adopted.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2627, 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 1, by striking all in lines 26 through 43;

On page 2, by striking all in lines 1 through 8;

And by renumbering remaining sections accordingly;

On page 4, in line 22, by striking ``Sec.'' and inserting ``Section'';

On page 7, in line 25, by striking all after ``(d)''; by striking all in lines 26 through 28 and
inserting ``Effective July 1, 1999, if a juvenile is adjudicated a juvenile offender and has
previously been adjudicated a child in need of care, the Kansas juvenile justice code shall
apply to such juvenile and the Kansas code for care of children shall suspend during the
time of jurisdiction pursuant to the Kansas juvenile justice code. Prior to July 1, 1999, the
court may apply the provisions of either code to a juvenile adjudicated under both codes.'';

Also on page 7, following line 34, by inserting the following:

``Sec. 4. K.S.A. 1997 Supp. 38-1624 is hereby amended to read as follows: 38-1624. (a)
By a law enforcement officer. A law enforcement officer may take an alleged juvenile of-
fender into custody when:

(1) Any offense has been or is being committed by the juvenile in the officer's view;

(2) the officer has a warrant commanding that the juvenile be taken into custody;

(3) the officer has probable cause to believe that a warrant or order commanding that
the juvenile be taken into custody has been issued in this state or in another jurisdiction for
an act committed therein;

(4) the officer has probable cause to believe that the juvenile is committing or has
committed an act which, if committed by an adult, would constitute:

(A) A felony; or

(B) a misdemeanor and (i) the juvenile will not be apprehended or evidence of the
offense will be irretrievably lost unless the juvenile is immediately taken into custody or (ii)
the juvenile may cause injury to self or others or damage to property or may be injured
unless immediately taken into custody; or

(5) the officer has probable cause to believe that the juvenile has violated an order for
electronic monitoring as a term of probation.

(b) By a court services officer. A court services officer may take a juvenile into custody
when there is a warrant commanding that the juvenile be taken into custody, when the court
services officer has probable cause to believe that a warrant or order commanding that the
juvenile be taken into custody has been issued in this state or in another jurisdiction for an
act committed therein or when there is probable cause to believe that the juvenile has
violated an order for electronic monitoring as a term of probation.

(c) Procedure. (1) When any law enforcement officer takes an alleged juvenile offender
into custody, the juvenile shall be taken without unnecessary delay to an intake and assess-
ment worker if an intake and assessment program exists in the jurisdiction, or before the
court for proceedings in accordance with this code or, if the court is not open for the regular
conduct of business, to a court services officer, a juvenile intake and assessment worker, a
juvenile detention facility or youth residential facility which the court or the commissioner
shall have designated. The officer shall not take the juvenile to a juvenile detention facility
unless the juvenile meets one or more of the criteria listed in K.S.A. 38-1640, and amend-
ments thereto. Even if the juvenile meets one or more of such criteria, the officer shall first
consider whether taking the juvenile to an available nonsecure facility is more appropriate.

(2) It shall be the duty of the officer to furnish the county or district attorney or the
juvenile intake and assessment worker if the officer has delivered such juvenile to the worker,
with all of the information in the possession of the officer pertaining to the juvenile; the
juvenile's parents, or other persons interested in or likely to be interested in the juvenile;
and all other facts and circumstances which caused the juvenile to be arrested or taken into
custody.

(3) (A) When the juvenile is less than 14 years of age, no in-custody or arrest admission
or confession resulting from interrogation may be admitted into evidence unless the confes-
sion or admission was made following a consultation between the juvenile and the juvenile's
parents, guardian or attorney as to whether the juvenile will waive such juvenile's right to
an attorney and right against self-incrimination. It shall be the duty of the facility where
the juvenile has been delivered to make a reasonable effort to contact the parent or guardian
immediately upon such juvenile's arrival unless such parent or guardian is the alleged victim
or alleged co-defendant of the crime under investigation.

(B) When a parent or guardian is the alleged victim or alleged co-defendant of the crime
under investigation and the juvenile is less than 14 years of age, no in-custody or arrest
admission or confession may be admitted into evidence unless the confession or admission
was made following a consultation between the juvenile and a parent or guardian who is
not involved in the investigation of the crime, or an attorney as to whether the juvenile will
waive such juvenile's right to an attorney and right against self-incrimination. It shall be the
duty of the facility where the juvenile has been delivered to make reasonable effort to contact
a parent or guardian who is not involved in the investigation of the crime immediately upon
such juvenile's arrival.

(d) Release prior to detention hearing. In the absence of a court order to the contrary,
the court or officials designated by the court, the county or district attorney or the law
enforcement agency taking a juvenile into custody shall have the authority to direct the
release of the juvenile prior to the time specified by subsection (a) of K.S.A. 38-1632 and
amendments thereto. In addition, if an agreement is established pursuant to K.S.A. 38-1635,
and amendments thereto, a juvenile intake and assessment worker shall have the authority
to direct the release of a juvenile prior to a detention hearing after the completion of the
intake and assessment process if the juvenile intake and assessment worker has reason to
believe that if released the juvenile will appear for further proceedings and will not be
dangerous to self or others.

(e) Person 18 or over taken into custody; detention and release. Whenever a person 18
years of age or more is taken into custody by a law enforcement officer for an alleged offense
which was committed prior to the time the person reached the age of 18, the officer shall
notify and refer the matter to the court for proceedings pursuant to this code, except that
the provisions of this code relating to detention hearings shall not apply to that person. If
detention is necessary, the person shall be detained in jail. Unless the law enforcement officer
took the person into custody pursuant to a warrant issued by the court and the warrant
specifies the amount of bond or indicates that the person may be released on personal
recognizance, the person shall be taken before the court of the county where the alleged
act took place or, at the request of the person, the person shall be taken, without delay,
before the nearest court. The court shall fix the terms and conditions of an appearance bond
upon which the person may be released from custody. The provisions of article 28 of chapter
22 of the Kansas Statutes Annotated and K.S.A. 22-2901 and amendments thereto relating
to appearance bonds and review of conditions and release shall be applicable to appearance
bonds provided for in this section.'';

And by renumbering remaining sections accordingly;

On page 11, following line 18, by inserting the following:

``Sec. 6. K.S.A. 1997 Supp. 38-1640 is hereby amended to read as follows: 38-1640. (a)
The following are criteria for determining whether to place a juvenile in a juvenile detention
facility pursuant to subsection (c) of K.S.A. 38-1624 or subsection (e) of K.S.A. 38-1632,
and amendments thereto:

(1) There is oral or written verification that the juvenile is a fugitive sought for an offense
in another jurisdiction or that the juvenile is currently an escapee from a juvenile detention
facility.

(2) The juvenile is alleged to have committed an offense which if committed by an adult
would constitute a class A, B or C felony if committed prior to July 1, 1993, or would
constitute an off-grid felony, a nondrug severity level 1, 2, 3, 4 or 5 felony or drug level 1,
2 or 3 felony if committed on or after July 1, 1993, or would constitute a crime described
in article 35 of chapter 21 of the Kansas Statutes Annotated.

(3) The juvenile is awaiting court action on another offense which if committed by an
adult would constitute a felony.

(4) The juvenile has a record of failure to appear in court or there is probable cause to
believe that the juvenile will flee the jurisdiction of the court.

(5) The juvenile has a history of violent behavior toward others.

(6) The juvenile exhibited seriously assaultive or destructive behavior at the time of
being taken into custody and continued such behavior after taken into custody.

(7) The juvenile exhibited self-destructive behavior at the time of being taken into cus-
tody and continued such behavior after taken into custody.

(8) The juvenile has a record of adjudication or conviction of one or more offenses
which if committed by an adult would constitute felonies.

(9) The juvenile is a juvenile offender who has been expelled from placement in a
nonsecure facility as a result of the current alleged offense.

(b) No person 18 years of age or more shall be placed in a juvenile detention center.

(c) This section shall be part of and supplemental to the Kansas juvenile justice code.'';

And by renumbering remaining sections accordingly;

On page 17, in line 27, by striking ``9'' and inserting ``7'';

On page 26, in line 25, by striking ``and'' and inserting a comma; also in line 25, before
the period by inserting ``and (d)'';

On page 27, in line 3, after ``(d)'' by inserting ``The provisions of this section shall not
apply to the detention of any person 18 years of age or more who is taken into custody and
is being prosecuted in accordance with the provisions of the Kansas juvenile justice code.

(e)'';

Also on page 27, in line 24, by striking ``offender''; in line 28, by striking ``offender'';

On page 36, following line 34, by inserting the following: ``Sec. 17. K.S.A. 38-1532
is hereby amended to read as follows: 38-1532. Upon the filing of a petition under this code
the court shall proceed by one of the following methods:

(a) Issue summons stating the place and time at which the parties are required to appear
and answer the allegations of the petition, which shall be within 30 days of the date the
petition is filed, and deliver the summons with copies of the petition attached to the sheriff
or a person specially appointed to serve it.

(b) If the child has been taken into protective custody under the provisions of K.S.A.
38-1542 and a temporary custody hearing is held as required by K.S.A. 38-1543, a copy of
the petition shall be served at the hearing on each interested party who is in attendance at
the hearing and a record of service made a part of the proceedings. The court shall announce
the time the parties will be required to next appear before the court. Process shall be served
on any interested party not at the temporary custody hearing.

Upon the written request of the petitioner or the county or district attorney separate or
additional summons shall be issued to any interested party.

The court shall attempt to notify both parents, if known.'';

And by renumbering the remaining sections accordingly;

Also on page 36, in line 35, by striking ``38-1531,''; also in line 35, by striking ``38-1533,'';
in line 36, before ``38-1636'' by inserting ``38-1624,'' also in line 36, after ``38-1636'' by
inserting ``38-1640,''; in line 40, by striking ``9'' and inserting ``7'';

On page 1, in the title, in line 17, by striking ``38-''; in line 18, by striking ``1531,''; also
in line 18, by striking ``38-1533,''; in line 19, before ``38-1636'' by inserting ``38-1624,''; also
in line 19, before ``38-1663'' as it appears for the first time, by inserting ``38-1640,''; in line
20, by striking ``9'' and inserting ``7'';

And your committee on conference recommends the adoption of this report.

Tim Emert

Lana Oleen

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 2627.

On roll call, the vote was: Yeas 40, nays 0, present and passing 0; absent or not voting 0.

Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Downey,
Emert, Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger, Harrington, Hensley, Huel-
skamp, Jones, Jordan, Karr, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Prae-
ger, Pugh, Ranson, Salisbury, Salmans, Schraad, Steffes, Steineger, Tyson, Umbarger,
Vidricksen.

The Conference Committee report was adopted.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2684, 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 as Amended by Senate on Final Action,
as follows:

On page 10, in line 35, by striking all after the period; in line 36, by striking all before
``request'' and inserting ``A''; in line 42, by striking ``it''; in line 43, after ``be'' by inserting
``deemed approved unless'';

On page 14, in line 1, before ``(a)'' by inserting ``On and after January 1, 1999,''; in line
10, by striking ``$10,000'' and inserting ``$15,000''; in line 14, by striking ``$1,000,000'' and
inserting ``$2,000,000''; by striking all in line 19; in line 20, before ``agricultural'' by inserting
``, other than those relating to land devoted to''; also, in line 20, after the first comma, by
inserting ``wherein the value of the property''; also, in line 20, by striking ``$1,000,000'' and
inserting ``$2,000,000''; in line 23, by striking ``Any'' and inserting ``In accordance with the
provisions of K.S.A. 1997 Supp. 74-2438, and amendments thereto, any'';

On page 15, in line 27, before ``(a)'' by inserting ``On and after January 1, 1999,''; after
line 32, by inserting the following:

``Sec. 9. On and after January 1, 1999, K.S.A. 79-1448 is hereby amended to read as
follows: 79-1448. Any taxpayer may complain or appeal to the county appraiser from the
classification or appraisal of the taxpayer's property by giving notice to the county appraiser
within 30 days subsequent to the date of mailing of the valuation notice required by K.S.A.
79-1460, and amendments thereto, for real property, and on or before May 15 for personal
property. The county appraiser or the appraiser's designee shall arrange to hold an informal
meeting with the aggrieved taxpayer with reference to the property in question. At such
meeting it shall be the duty of the county appraiser or the county appraiser's designee to
initiate production of evidence to substantiate the valuation of such property. The county
appraiser may extend the time in which the taxpayer may informally appeal from the clas-
sification or appraisal of the taxpayer's property for just and adequate reasons. Except as
provided in K.S.A. 79-1404, and amendments thereto, no informal meeting regarding real
property shall be scheduled to take place after May 15, nor shall a final determination be
given by the appraiser after May 20. Any taxpayer who is aggrieved by the final determination
of the county appraiser may appeal to the hearing officer or panel appointed pursuant to
K.S.A. 79-1611, and amendments thereto, and such hearing officer, or panel, for just cause
shown and recorded, is authorized to change the classification or valuation of specific tracts
or individual items of real or personal property in the same manner provided for in K.S.A.
79-1606, and amendments thereto. In lieu of appealing to a hearing officer or panel ap-
pointed pursuant to K.S.A. 79-1611, and amendments thereto, any taxpayer aggrieved by
the final determination of the county appraiser, except with regard to land devoted to ag-
ricultural use, wherein the value of the property, is less than $2,000,000, as reflected on the
valuation notice, or the property constitutes single family residential property, may appeal
to the small claims division of the state board of tax appeals within the time period prescribed
by K.S.A. 79-1606, and amendments thereto. Any taxpayer who is aggrieved by the final
determination of a hearing officer or panel may appeal to the state board of tax appeals as
provided in K.S.A. 79-1609, and amendments thereto. An informal meeting with the county
appraiser or the appraiser's designee shall be a condition precedent to an appeal to the
county or district hearing panel.

Sec. 10. On and after January 1, 1999, K.S.A. 79-1611 is hereby amended to read as
follows: 79-1611. The board of county commissioners of each county ~~having fewer than~~
~~10,000 parcels of real property~~ may appoint ~~and the board of county commissioners of each~~
~~county having 10,000 parcels of real property or more shall appoint~~ at least one hearing
officer or county hearing panel of not fewer than three individuals to hear and determine
appeals from the final determination of classification and appraised valuation of real or
personal property by the county appraiser. The board of county commissioners, with the
approval of the director of property valuation, may unite with the board of county commis-
sioners of one or more counties to form a district for the purpose of appointing at least one
hearing officer or district hearing panel of not fewer than three individuals. In any county
wherein a hearing officer or county or district hearing panel is not appointed pursuant to
this section any appeal from the final determination of the county appraiser shall be filed
directly with the state board of tax appeals as provided in K.S.A. 79-1609, and amendments
thereto.

The board of county commissioners shall fix the salary to be paid the hearing officer or
each member of the county hearing panel. In the case of a district hearing officer or district
hearing panel, the salary to be paid shall be fixed by joint resolution by the boards of county
commissioners published in the official county newspaper of each county. The board of
county commissioners of each county is hereby authorized to levy a tax upon all taxable
tangible property in the county in an amount necessary to pay all costs incurred in complying
with this section and K.S.A. 79-1494.

No person may serve as a hearing officer or on a county or district hearing panel who is
not qualified by virtue of experience and training in the field of property appraisal and
property tax administration, such qualifications to be determined by the director of property
valuation who shall prescribe guidelines governing the duties of the hearing officers or
county and district hearing panels. Each hearing officer and member of a county or district
hearing panel shall attend and complete a training program conducted by the director of
property valuation or the director's designee. Any person who has performed an appraisal
of any property the appraised valuation of which is appealed to a hearing officer or the
county or district hearing panel shall not hear such appeal and may not participate in any
deliberations on such appeal. The board of county commissioners, or individual members
thereof, may serve as a hearing officer or as members of the county or district hearing panel
provided they meet the foregoing requirements.

Whenever the director of property valuation shall conclude that any person appointed as
a hearing officer or to a county or district hearing panel has failed or neglected to discharge
such person's duties as required by law and that the interest of the public will be promoted
by the removal of such person, the director of property valuation shall issue an order sus-
pending or terminating such person as a hearing officer or member of the hearing panel in
the same manner and subject to the same conditions provided in subsection (b) of K.S.A.
19-431, and amendments thereto.

The provisions of this section shall apply to all taxable years commencing after December
31, ~~1992~~ 1997.

Sec. 11. On and after January 1, 1999, K.S.A. 79-1448 and 79-1611 are hereby re-
pealed.'';

By renumbering existing sections accordingly;

In the title, in line 15, by striking ``and''; in line 16, after ``251'' by inserting ``, 79-1448
and 79-1611'';

And your committee on conference recommends the adoption of this report.

Audrey Langworthy

David R. Corbin

Janis K. Lee

Conferees on part of Senate

Phill Kline

Tony Powell

Bruce Larkin

Conferees on part of House

Senator Langworthy moved the Senate adopt the Conference Committee report on HB
2684.

On roll call, the vote was: Yeas 39, nays 1, present and passing 0; absent or not voting 0.

Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Downey,
Emert, Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger, Harrington, Hensley, Jones,
Jordan, Karr, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Praeger, Pugh, Ran-
son, Salisbury, Salmans, Schraad, Steffes, Steineger, Tyson, Umbarger, Vidricksen.

Nays: Huelskamp.

The Conference Committee report was adopted.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2726, 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 3, following line 26, by inserting the following sections:

``Section 1. K.S.A. 1997 Supp. 12-4214 is hereby amended to read as follows: 12-4214.
(a) Except as provided further, when a person is charged with an ordinance traffic infraction
or an ordinance cigarette or tobacco infraction, the notice to appear shall provide a place
where the person may make a written entry of appearance, waive the right to a trial and
plead guilty or no contest. The notice to appear shall provide a space in which the law
enforcement officer, except as provided in subsection (b), shall enter the appropriate fine
specified in the fine schedule established by the municipal judge in accordance with K.S.A.
12-4305 and amendments thereto, in the case of a traffic infraction, or a fine of $25, in the
case of an ordinance cigarette or tobacco infraction. Either the notice to appear or a separate
form provided to the person by the law enforcement officer shall provide an explanation:
(1) Of the person's right to appear and right to trial and the person's right to pay the
appropriate fine prior to the appearance date; (2) that failure to either pay such fine or
appear at the specified time may result in issuance of a warrant for the person's arrest; and
(3) in the case of a traffic infraction, that failure to either pay such fine or appear at the
specified time may result in the suspension of the person's driver's license. The law enforce-
ment officer shall provide the person with the telephone number and address of the mu-
nicipal court to which the written entry of appearance, waiver of trial, plea of guilty or no
contest and payment of fine shall be mailed.

(b) In lieu of the law enforcement officer entering the appropriate fine for an ordinance
traffic infraction, the officer may direct the person charged with an ordinance traffic in-
fraction to contact the clerk of the municipal court to determine the applicable fine or
provide the person with a copy of the fine schedule established by the municipal judge in
accordance with K.S.A. 12-4305 and amendments thereto.

(c) When a person is charged with an ordinance cigarette or tobacco infraction, the
judge may require the juvenile to appear in court with a parent or legal guardian.

~~(c)~~ (d) This section shall be a part of and supplemental to the provisions of article 42
of chapter 12 of the Kansas Statutes Annotated and acts amendatory thereof or supplemental
thereto.

Sec. 2. K.S.A. 1997 Supp. 12-4305 is hereby amended to read as follows: 12-4305. (a)
The municipal judge shall establish a schedule of fines which shall be imposed for municipal
ordinance violations that are classified as ordinance traffic infractions. Also, the municipal
judge may establish a schedule of fines which shall be imposed for the violation of certain
other ordinances. Any fine so established shall be within the minimum and maximum al-
lowable fines established by ordinance for such offenses by the governing body. The follow-
ing traffic violations are specifically excluded from any schedule of fines:

(1) Reckless driving;

(2) driving while under the influence of alcohol or drugs, or both, or driving with a blood
or breath alcohol concentration of .08 or more;

(3) driving without a valid license issued or on a canceled, suspended or revoked license;

(4) fleeing or attempting to elude a police officer; or

(5) offense comparable to those prescribed by K.S.A. 8-1602, 8-1603 and 8-1604 and
amendments thereto.

(b) A person charged with the violation of an ordinance contained in a schedule of fines
established under subsection (a) shall, except as provided in subsection (c), appear at the
place and time specified in the notice to appear. If the person enters an appearance, waives
right to trial, pleads guilty or no contest, the fine shall be no greater than that specified in
the schedule.

(c) Except as provided in subsection (c) of K.S.A. 12-4214, and amendments thereto,
prior to the time specified in the notice to appear, a person charged with an ordinance
cigarette or tobacco infraction or a violation of an ordinance contained in a schedule of fines
established under subsection (a) may enter an appearance, waive right to trial, plead guilty
or no contest and pay the fine for the violation as specified in the schedule or in subsection
(a) of K.S.A. 12-4214 and amendments thereto. At the election of the person charged, such
appearance, waiver, plea and payment may be made by mail or in person and payment may
be by personal check. The complaint shall not have been complied with if a check is not
honored for any reason, or the fine is not paid in full prior to the time specified in the notice
to appear. When a person charged with an ordinance cigarette or tobacco infraction or an
ordinance traffic infraction or other ordinance violation on a schedule of fines makes pay-
ment without executing a written waiver of right to trial and plea of guilty or no contest,
the payment shall be deemed such an appearance, waiver of right to trial and plea of no
contest.

The municipal judge may authorize the clerk of the municipal court or some other person
to accept by mail or in person such voluntary appearance, plea of guilty or no contest and
payment of the fine imposed by the schedule or by subsection (a) of K.S.A. 12-4214 and
amendments thereto.

The schedule of fines and persons authorized to accept such pleas shall be conspicuously
displayed in the office where such voluntary appearance, plea of guilty and payment of fine
occurs.'';

An by renumbering the remaining sections accordingly;

Also on page 3, in line 27, by striking ``Section'' and inserting ``Sec.'';

On page 10, in line 24, following the period, by inserting ``In addition, the judge may
require the juvenile to appear in court with a parent or legal guardian.'';

On page 12, following line 26, by inserting the following:

``(b) The notice to appear may provide that the person charged with the infraction shall
appear in court with a parent or legal guardian and shall provide that the person charged
has a right to trial.'';

On page 13, in line 30, before ``21-3105'' by inserting ``12-4214, 12-4305,''

On page 1, in the title, in line 19, before ``21-3105'' by inserting ``12-4214, 12-4305,'';

And your committee on conference recommends the adoption of this report.

Lana Oleen

Keith Schraad

Sherman Jones

Conferees on part of Senate

Tim Carmody

Terry P. Presta

Jim D. Garner

Conferees on part of House

Senator Oleen moved the Senate adopt the Conference Committee report on HB 2726.

On roll call, the vote was: Yeas 40, nays 0, present and passing 0; absent or not voting 0.

Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Downey,
Emert, Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger, Harrington, Hensley, Huel-
skamp, Jones, Jordan, Karr, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Prae-
ger, Pugh, Ranson, Salisbury, Salmans, Schraad, Steffes, Steineger, Tyson, Umbarger,
Vidricksen.

The Conference Committee report was adopted.

May 3, 1998

ORIGINAL MOTION

On motion of Senator Praeger, the Senate acceded to the request of the House for a
conference on HB 2185.

The President appointed Senators Praeger, Hardenburger and Steineger as second confer-
ees on the part of the Senate.

On motion of Senator Emert, the Senate recessed until 8:30 p.m.

______ Evening Session
The Senate met pursuant to recess with President Bond in the chair.

Announcing the House concurs in Senate amendments to HB 3016.

The House adopts the conference committee report on HB 2627.

The House adopts the conference committee report on HB 2684.

The House accedes to the request of the Senate for a conference on HB 2868 and has
appointed Representatives Freeborn, Johnson and McClure as second conferees on the part
of the House.

The House nonconcurs in Senate amendments to Senate Substitute for HB 2860,
requests a conference and has appointed Reps. Glasscock, Carmody and Welshimer as
conferees on the part of the House.

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 2584.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2584, 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 12, by striking all in lines 9 through 43;

By striking all on pages 13 and 14;

On page 15, by striking all in lines 1 through 42 and inserting the following:

``Sec. 5. K.S.A. 79-2804g is hereby amended to read as follows: 79-2804g. (a) Whenever
any tract, lot or piece of real estate is offered for sale at public auction pursuant to K.S.A.
79-2804, and amendments thereto, such tract, lot or piece of real estate shall not be sold,
either directly or indirectly, to:

(1) Any person having a statutory right to redeem such real estate prior to such sale,
pursuant to the provisions of K.S.A. 79-2803, and amendments thereto;

(2) any parent, grandparent, child, grandchild, spouse, sibling, trustee or trust benefi-
ciary who held an interest in a tract as owner or holder of the record title or who held an
interest at any time when any tax constituting part of the county's judgment became due;
or

(3) with respect to a title holding corporation, any current or former stockholder, current
officer or director, or any person having a relationship enumerated in paragraph ~~(3)~~ (2) to
such stockholder, officer or director.

(b) If any such real estate is acquired by a county pursuant to K.S.A. 79-2804, and
amendments thereto, and, at the end of six months from and after confirmation of such sale
to the county, such real estate is advertised for sale at public auction, as provided in K.S.A.
79-2804f, and amendments thereto, such real estate shall not be sold, either prior to or at
such auction, to any person having a statutory right to redeem such real estate, under the
provisions of K.S.A. 79-2803, and amendments thereto, for an amount less than the original
judgment lien and interest thereon, plus the costs, charges and expenses of the proceedings
and sale, as set forth in the execution and order of sale issued pursuant to K.S.A. 79-2804,
and amendments thereto.

(c) If any tract, lot or piece of real estate purchased at public auction pursuant to K.S.A.
79-2804, and amendments thereto, is transferred, sold, given or otherwise conveyed to any
person who had a statutory right to redeem such real estate prior to such sale pursuant to
K.S.A. 79-2803, and amendments thereto, within 10 years of the date of the public auction,
such person shall be liable for an amount equal to the original judgment lien and interest
thereon from the date of the public auction.

(d) The provisions of this section shall apply to the sale or conveyance of any real estate
by a county land bank established pursuant to K.S.A. 1997 Supp. 19-26,104.

Sec. 6. K.S.A. 79-3234 is hereby amended to read as follows: 79-3234. (a) All reports
and returns required by this act shall be preserved for three years and thereafter until the
director orders them to be destroyed.

(b) Except in accordance with proper judicial order, or as provided in subsection (c) or
in K.S.A. 17-7511, subsection (g) of K.S.A. 46-1106, K.S.A. 46-1114, or K.S.A. 79-32,153a,
and amendments thereto, it shall be unlawful for the director, any deputy, agent, clerk or
other officer, employee or former employee of the department of revenue or any other state
officer or employee or former state officer or employee to divulge, or to make known in
any way, the amount of income or any particulars set forth or disclosed in any report, return,
federal return or federal return information required under this act; and it shall be unlawful
for the director, any deputy, agent, clerk or other officer or employee engaged in the ad-
ministration of this act to engage in the business or profession of tax accounting or to accept
employment, with or without consideration, from any person, firm or corporation for the
purpose, directly or indirectly, of preparing tax returns or reports required by the laws of
the state of Kansas, by any other state or by the United States government, or to accept any
employment for the purpose of advising, preparing material or data, or the auditing of books
or records to be used in an effort to defeat or cancel any tax or part thereof that has been
assessed by the state of Kansas, any other state or by the United States government.

(c) Nothing in this section shall be construed to prohibit the publication of statistics, so
classified as to prevent the identification of particular reports or returns and the items
thereof, or the inspection of returns by the attorney general or other legal representatives
of the state. Nothing in this section shall prohibit the post auditor from access to all income
tax reports or returns in accordance with and subject to the provisions of subsection (g) of
K.S.A. 46-1106 or K.S.A. 46-1114, and amendments thereto. Nothing in this section shall
be construed to prohibit the disclosure of taxpayer information from income tax returns to
persons or entities contracting with the secretary of revenue where the secretary has deter-
mined disclosure of such information is essential for completion of the contract and has
taken appropriate steps to preserve confidentiality. Nothing in this section shall be construed
to prohibit the disclosure of job creation and investment information derived from tax sched-
ules required to be filed under the Kansas income tax act to the secretary of commerce.
Nothing in this section shall be construed to prohibit the disclosure of the taxpayer's name,
last known address and residency status to the department of wildlife and parks to be used
solely in its license fraud investigations. Nothing in this section shall prohibit the disclosure
of the name, residence address, employer or Kansas adjusted gross income of a taxpayer who
may have a duty of support in a title IV-D case to the secretary of the Kansas department
of social and rehabilitation services for use solely in administrative or judicial proceedings
to establish, modify or enforce such support obligation in a title IV-D case. In addition to
any other limits on use, such use shall be allowed only where subject to a protective order
which prohibits disclosure outside of the title IV-D proceeding. As used in this section, ``title
IV-D case'' means a case being administered pursuant to part D of title IV of the federal
social security act (42 U.S.C. § 651 et seq.) and amendments thereto. Any person receiving
any information under the provisions of this subsection shall be subject to the confidentiality
provisions of subsection (b) and to the penalty provisions of subsection (d).

(d) Any violation of subsection (b) or (c) is a class B nonperson misdemeanor and, if
the offender is an officer or employee of the state, such officer or employee shall be dis-
missed from office.

(e) Notwithstanding the provisions of this section, the secretary of revenue may permit
the commissioner of internal revenue of the United States, or the proper official of any state
imposing an income tax, or the authorized representative of either, to inspect the income
tax returns made under this act and the secretary of revenue may make available or furnish
to the taxing officials of any other state or the commissioner of internal revenue of the
United States or other taxing officials of the federal government, or their authorized rep-
resentatives, information contained in income tax reports or returns or any audit thereof or
the report of any investigation made with respect thereto, filed pursuant to the income tax
laws, as the secretary may consider proper, but such information shall not be used for any
other purpose than that of the administration of tax laws of such state, the state of Kansas
or of the United States.

(f) Notwithstanding the provisions of this section, the secretary of revenue may:

(1) Communicate to the executive director of the Kansas lottery information as to
whether a person, partnership or corporation is current in the filing of all applicable tax
returns and in the payment of all taxes, interest and penalties to the state of Kansas, excluding
items under formal appeal, for the purpose of determining whether such person, partnership
or corporation is eligible to be selected as a lottery retailer;

(2) communicate to the executive director of the Kansas racing commission as to
whether a person, partnership or corporation has failed to meet any tax obligation to the
state of Kansas for the purpose of determining whether such person, partnership or cor-
poration is eligible for a facility owner license or facility manager license pursuant to the
Kansas parimutuel racing act; and

(3) provide such information to the president of Kansas, Inc. as required by K.S.A. 1997
Supp. 74-8017, and amendments thereto. The president and any employees or former em-
ployees of Kansas, Inc. receiving any such information shall be subject to the confidentiality
provisions of subsection (b) and to the penalty provisions of subsection (d).

(g) Nothing in this section shall be construed to allow disclosure of the amount of income
or any particulars set forth or disclosed in any report, return, federal return or federal return
information, where such disclosure is prohibited by the federal internal revenue code as in
effect on September 1, 1996, and amendments thereto, related federal internal revenue rules
or regulations, or other federal law.

Sec. 7. K.S.A. 79-3606, as amended by section 31 of 1998 Senate Bill No. 493, is hereby
amended to read as follows: 79-3606. The following shall be exempt from the tax imposed
by this act:

(a) All sales of motor-vehicle fuel or other articles upon which a sales or excise tax has
been paid, not subject to refund, under the laws of this state except cigarettes as defined
by K.S.A. 79-3301 and amendments thereto, cereal malt beverages and malt products as
defined by K.S.A. 79-3817 and amendments thereto, including wort, liquid malt, malt syrup
and malt extract, which is not subject to taxation under the provisions of K.S.A. 79-41a02
and amendments thereto, motor vehicles taxed pursuant to K.S.A. 79-5117, and amend-
ments thereto, tires taxed pursuant to K.S.A. 1997 Supp. 65-3424d, and amendments
thereto, and drycleaning and laundry services taxed pursuant to K.S.A. 1997 Supp. 65-
34,150, and amendments thereto;

(b) all sales of tangible personal property or service, including the renting and leasing
of tangible personal property, purchased directly by the state of Kansas, a political subdi-
vision thereof, other than a school or educational institution, or purchased by a public or
private nonprofit hospital or public hospital authority or nonprofit blood, tissue or organ
bank and used exclusively for state, political subdivision, hospital or public hospital authority
or nonprofit blood, tissue or organ bank purposes, except when: (1) Such state, hospital or
public hospital authority is engaged or proposes to engage in any business specifically taxable
under the provisions of this act and such items of tangible personal property or service are
used or proposed to be used in such business, or (2) such political subdivision is engaged
or proposes to engage in the business of furnishing gas, water, electricity or heat to others
and such items of personal property or service are used or proposed to be used in such
business;

(c) all sales of tangible personal property or services, including the renting and leasing
of tangible personal property, purchased directly by a public or private elementary or sec-
ondary school or public or private nonprofit educational institution and used primarily by
such school or institution for nonsectarian programs and activities provided or sponsored
by such school or institution or in the erection, repair or enlargement of buildings to be
used for such purposes. The exemption herein provided shall not apply to erection, con-
struction, repair, enlargement or equipment of buildings used primarily for human habita-
tion;

(d) all sales of tangible personal property or services purchased by a contractor for the
purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, fur-
nishing or remodeling facilities for any public or private nonprofit hospital or public hospital
authority, public or private elementary or secondary school or a public or private nonprofit
educational institution, which would be exempt from taxation under the provisions of this
act if purchased directly by such hospital or public hospital authority, school or educational
institution; and all sales of tangible personal property or services purchased by a contractor
for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging,
furnishing or remodeling facilities for any political subdivision of the state, the total cost of
which is paid from funds of such political subdivision and which would be exempt from
taxation under the provisions of this act if purchased directly by such political subdivision.
Nothing in this subsection or in the provisions of K.S.A. 12-3418 and amendments thereto,
shall be deemed to exempt the purchase of any construction machinery, equipment or tools
used in the constructing, equipping, reconstructing, maintaining, repairing, enlarging, fur-
nishing or remodeling facilities for any political subdivision of the state. As used in this
subsection, K.S.A. 12-3418 and 79-3640, and amendments thereto, ``funds of a political
subdivision'' shall mean general tax revenues, the proceeds of any bonds and gifts or grants-
in-aid. Gifts shall not mean funds used for the purpose of constructing, equipping, recon-
structing, repairing, enlarging, furnishing or remodeling facilities which are to be leased to
the donor. When any political subdivision of the state, public or private nonprofit hospital
or public hospital authority, public or private elementary or secondary school or public or
private nonprofit educational institution shall contract for the purpose of constructing,
equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling fa-
cilities, it shall obtain from the state and furnish to the contractor an exemption certificate
for the project involved, and the contractor may purchase materials for incorporation in
such project. The contractor shall furnish the number of such certificate to all suppliers
from whom such purchases are made, and such suppliers shall execute invoices covering
the same bearing the number of such certificate. Upon completion of the project the con-
tractor shall furnish to the political subdivision, hospital or public hospital authority, school
or educational institution concerned a sworn statement, on a form to be provided by the
director of taxation, that all purchases so made were entitled to exemption under this sub-
section. As an alternative to the foregoing procedure, any such contracting entity may apply
to the secretary of revenue for agent status for the sole purpose of issuing and furnishing
project exemption certificates to contractors pursuant to rules and regulations adopted by
the secretary establishing conditions and standards for the granting and maintaining of such
status. All invoices shall be held by the contractor for a period of five years and shall be
subject to audit by the director of taxation. If any materials purchased under such a certif-
icate are found not to have been incorporated in the building or other project or not to have
been returned for credit or the sales or compensating tax otherwise imposed upon such
materials which will not be so incorporated in the building or other project reported and
paid by such contractor to the director of taxation not later than the 20th day of the month
following the close of the month in which it shall be determined that such materials will not
be used for the purpose for which such certificate was issued, the political subdivision,
hospital or public hospital authority, school or educational institution concerned shall be
liable for tax on all materials purchased for the project, and upon payment thereof it may
recover the same from the contractor together with reasonable attorney fees. Any contractor
or any agent, employee or subcontractor thereof, who shall use or otherwise dispose of any
materials purchased under such a certificate for any purpose other than that for which such
a certificate is issued without the payment of the sales or compensating tax otherwise im-
posed upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor,
shall be subject to the penalties provided for in subsection (g) of K.S.A. 79-3615, and amend-
ments thereto;

(e) all sales of tangible personal property or services purchased by a contractor for the
erection, repair or enlargement of buildings or other projects for the government of the
United States, its agencies or instrumentalities, which would be exempt from taxation if
purchased directly by the government of the United States, its agencies or instrumentalities.
When the government of the United States, its agencies or instrumentalities shall contract
for the erection, repair, or enlargement of any building or other project, it shall obtain from
the state and furnish to the contractor an exemption certificate for the project involved, and
the contractor may purchase materials for incorporation in such project. The contractor
shall furnish the number of such certificates to all suppliers from whom such purchases are
made, and such suppliers shall execute invoices covering the same bearing the number of
such certificate. Upon completion of the project the contractor shall furnish to the govern-
ment of the United States, its agencies or instrumentalities concerned a sworn statement,
on a form to be provided by the director of taxation, that all purchases so made were entitled
to exemption under this subsection. As an alternative to the foregoing procedure, any such
contracting entity may apply to the secretary of revenue for agent status for the sole purpose
of issuing and furnishing project exemption certificates to contractors pursuant to rules and
regulations adopted by the secretary establishing conditions and standards for the granting
and maintaining of such status. All invoices shall be held by the contractor for a period of
five years and shall be subject to audit by the director of taxation. Any contractor or any
agent, employee or subcontractor thereof, who shall use or otherwise dispose of any ma-
terials purchased under such a certificate for any purpose other than that for which such a
certificate is issued without the payment of the sales or compensating tax otherwise imposed
upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor, shall
be subject to the penalties provided for in subsection (g) of K.S.A. 79-3615 and amendments
thereto;

(f) tangible personal property purchased by a railroad or public utility for consumption
or movement directly and immediately in interstate commerce;

(g) sales of aircraft including remanufactured and modified aircraft, sales of aircraft
repair, modification and replacement parts and sales of services employed in the remanu-
facture, modification and repair of aircraft sold to persons using directly or through an
authorized agent such aircraft and aircraft repair, modification and replacement parts as
certified or licensed carriers of persons or property in interstate or foreign commerce under
authority of the laws of the United States or any foreign government or sold to any foreign
government or agency or instrumentality of such foreign government and all sales of aircraft,
aircraft parts, replacement parts and services employed in the remanufacture, modification
and repair of aircraft for use outside of the United States;

(h) all rentals of nonsectarian textbooks by public or private elementary or secondary
schools;

(i) the lease or rental of all films, records, tapes, or any type of sound or picture tran-
scriptions used by motion picture exhibitors;

(j) meals served without charge or food used in the preparation of such meals to em-
ployees of any restaurant, eating house, dining car, hotel, drugstore or other place where
meals or drinks are regularly sold to the public if such employees' duties are related to the
furnishing or sale of such meals or drinks;

(k) any motor vehicle, semitrailer or pole trailer, as such terms are defined by K.S.A.
8-126 and amendments thereto, or aircraft sold and delivered in this state to a bona fide
resident of another state, which motor vehicle, semitrailer, pole trailer or aircraft is not to
be registered or based in this state and which vehicle, semitrailer, pole trailer or aircraft will
not remain in this state more than 10 days;

(l) all isolated or occasional sales of tangible personal property, services, substances or
things, except isolated or occasional sale of motor vehicles specifically taxed under the pro-
visions of subsection (o) of K.S.A. 79-3603 and amendments thereto;

(m) all sales of tangible personal property which become an ingredient or component
part of tangible personal property or services produced, manufactured or compounded for
ultimate sale at retail within or without the state of Kansas; and any such producer, manu-
facturer or compounder may obtain from the director of taxation and furnish to the supplier
an exemption certificate number for tangible personal property for use as an ingredient or
component part of the property or services produced, manufactured or compounded;

(n) all sales of tangible personal property which is consumed in the production, man-
ufacture, processing, mining, drilling, refining or compounding of tangible personal prop-
erty, the treating of by-products or wastes derived from any such production process, the
providing of services or the irrigation of crops for ultimate sale at retail within or without
the state of Kansas; and any purchaser of such property may obtain from the director of
taxation and furnish to the supplier an exemption certificate number for tangible personal
property for consumption in such production, manufacture, processing, mining, drilling,
refining, compounding, treating, irrigation and in providing such services;

(o) all sales of animals, fowl and aquatic plants and animals, the primary purpose of
which is use in agriculture or aquaculture, as defined in K.S.A. 47-1901, and amendments
thereto, the production of food for human consumption, the production of animal, dairy,
poultry or aquatic plant and animal products, fiber or fur, or the production of offspring for
use for any such purpose or purposes;

(p) all sales of drugs, as defined by K.S.A. 65-1626 and amendments thereto, dispensed
pursuant to a prescription order, as defined by K.S.A. 65-1626 and amendments thereto,
by a licensed practitioner;

(q) all sales of insulin dispensed by a person licensed by the state board of pharmacy to
a person for treatment of diabetes at the direction of a person licensed to practice medicine
by the board of healing arts;

(r) all sales of prosthetic and orthopedic appliances prescribed in writing by a person
licensed to practice the healing arts, dentistry or optometry. For the purposes of this sub-
section, the term prosthetic and orthopedic appliances means any apparatus, instrument,
device, or equipment used to replace or substitute for any missing part of the body; used
to alleviate the malfunction of any part of the body; or used to assist any disabled person in
leading a normal life by facilitating such person's mobility; such term shall include acces-
sories attached or to be attached to motor vehicles, but such term shall not include motor
vehicles or personal property which when installed becomes a fixture to real property;

(s) all sales of tangible personal property or services purchased directly by a groundwater
management district organized or operating under the authority of K.S.A. 82a-1020 et seq.
and amendments thereto, which property or services are used in the operation or mainte-
nance of the district;

(t) all sales of farm machinery and equipment or aquaculture machinery and equipment,
repair and replacement parts therefor and services performed in the repair and maintenance
of such machinery and equipment. For the purposes of this subsection the term ``farm
machinery and equipment or aquaculture machinery and equipment'' shall include machin-
ery and equipment used in the operation of Christmas tree farming but shall not include
any passenger vehicle, truck, truck tractor, trailer, semitrailer or pole trailer, other than a
farm trailer, as such terms are defined by K.S.A. 8-126 and amendments thereto. Each
purchaser of farm machinery and equipment or aquaculture machinery and equipment
exempted herein must certify in writing on the copy of the invoice or sales ticket to be
retained by the seller that the farm machinery and equipment or aquaculture machinery
and equipment purchased will be used only in farming, ranching or aquaculture production.
Farming or ranching shall include the operation of a feedlot and farm and ranch work for
hire and the operation of a nursery;

(u) all leases or rentals of tangible personal property used as a dwelling if such tangible
personal property is leased or rented for a period of more than 28 consecutive days;

(v) all sales of food products to any contractor for use in preparing meals for delivery
to homebound elderly persons over 60 years of age and to homebound disabled persons or
to be served at a group-sitting at a location outside of the home to otherwise homebound
elderly persons over 60 years of age and to otherwise homebound disabled persons, as all
or part of any food service project funded in whole or in part by government or as part of
a private nonprofit food service project available to all such elderly or disabled persons
residing within an area of service designated by the private nonprofit organization, and all
sales of food products for use in preparing meals for consumption by indigent or homeless
individuals whether or not such meals are consumed at a place designated for such purpose;

(w) all sales of natural gas, electricity, heat and water delivered through mains, lines or
pipes: (1) To residential premises for noncommercial use by the occupant of such premises;
(2) for agricultural use and also, for such use, all sales of propane gas; (3) for use in the
severing of oil; and (4) to any property which is exempt from property taxation pursuant to
K.S.A. 79-201b Second through Sixth. As used in this paragraph, ``severing'' shall have the
meaning ascribed thereto by subsection (k) of K.S.A. 79-4216, and amendments thereto;

(x) all sales of propane gas, LP-gas, coal, wood and other fuel sources for the production
of heat or lighting for noncommercial use of an occupant of residential premises;

(y) all sales of materials and services used in the repairing, servicing, altering, maintain-
ing, manufacturing, remanufacturing, or modification of railroad rolling stock for use in
interstate or foreign commerce under authority of the laws of the United States;

(z) all sales of tangible personal property and services purchased directly by a port
authority or by a contractor therefor as provided by the provisions of K.S.A. 12-3418 and
amendments thereto;

(aa) all sales of materials and services applied to equipment which is transported into
the state from without the state for repair, service, alteration, maintenance, remanufacture
or modification and which is subsequently transported outside the state for use in the trans-
mission of liquids or natural gas by means of pipeline in interstate or foreign commerce
under authority of the laws of the United States;

(bb) all sales of used mobile homes or manufactured homes. As used in this subsection:
(1) ``Mobile homes'' and ``manufactured homes'' shall have the meanings ascribed thereto
by K.S.A. 58-4202 and amendments thereto; and (2) ``sales of used mobile homes or man-
ufactured homes'' means sales other than the original retail sale thereof;

(cc) all sales of tangible personal property or services purchased for the purpose of and
in conjunction with constructing, reconstructing, enlarging or remodeling a business or retail
business which meets the requirements established in K.S.A. 74-50,115 and amendments
thereto, and the sale and installation of machinery and equipment purchased for installation
at any such business or retail business. When a person shall contract for the construction,
reconstruction, enlargement or remodeling of any such business or retail business, such
person shall obtain from the state and furnish to the contractor an exemption certificate for
the project involved, and the contractor may purchase materials, machinery and equipment
for incorporation in such project. The contractor shall furnish the number of such certificates
to all suppliers from whom such purchases are made, and such suppliers shall execute
invoices covering the same bearing the number of such certificate. Upon completion of the
project the contractor shall furnish to the owner of the business or retail business a sworn
statement, on a form to be provided by the director of taxation, that all purchases so made
were entitled to exemption under this subsection. All invoices shall be held by the contractor
for a period of five years and shall be subject to audit by the director of taxation. Any
contractor or any agent, employee or subcontractor thereof, who shall use or otherwise
dispose of any materials, machinery or equipment purchased under such a certificate for
any purpose other than that for which such a certificate is issued without the payment of
the sales or compensating tax otherwise imposed thereon, shall be guilty of a misdemeanor
and, upon conviction therefor, shall be subject to the penalties provided for in subsection
(g) of K.S.A. 79-3615 and amendments thereto. As used in this subsection, ``business'' and
``retail business'' have the meanings respectively ascribed thereto by K.S.A. 74-50,114 and
amendments thereto;

(dd) all sales of tangible personal property purchased with food stamps issued by the
United States department of agriculture;

(ee) all sales of lottery tickets and shares made as part of a lottery operated by the state
of Kansas;

(ff) on and after July 1, 1988, all sales of new mobile homes or manufactured homes to
the extent of 40% of the gross receipts, determined without regard to any trade-in allowance,
received from such sale. As used in this subsection, ``mobile homes'' and ``manufactured
homes'' shall have the meanings ascribed thereto by K.S.A. 58-4202 and amendments
thereto;

(gg) all sales of tangible personal property purchased in accordance with vouchers issued
pursuant to the federal special supplemental food program for women, infants and children;

(hh) all sales of medical supplies and equipment purchased directly by a nonprofit skilled
nursing home or nonprofit intermediate nursing care home, as defined by K.S.A. 39-923,
and amendments thereto, for the purpose of providing medical services to residents thereof.
This exemption shall not apply to tangible personal property customarily used for human
habitation purposes;

(ii) all sales of tangible personal property purchased directly by a nonprofit organization
for nonsectarian comprehensive multidiscipline youth development programs and activities
provided or sponsored by such organization, and all sales of tangible personal property by
or on behalf of any such organization. This exemption shall not apply to tangible personal
property customarily used for human habitation purposes;

(jj) all sales of tangible personal property or services, including the renting and leasing
of tangible personal property, purchased directly on behalf of a community-based mental
retardation facility or mental health center organized pursuant to K.S.A. 19-4001 et seq.,
and amendments thereto, and licensed in accordance with the provisions of K.S.A. 75-3307b
and amendments thereto. This exemption shall not apply to tangible personal property
customarily used for human habitation purposes;

(kk) on and after January 1, 1989, all sales of machinery and equipment used directly
and primarily for the purposes of manufacturing, assembling, processing, finishing, storing,
warehousing or distributing articles of tangible personal property in this state intended for
resale by a manufacturing or processing plant or facility or a storage, warehousing or dis-
tribution facility, and all sales of repair and replacement parts and accessories purchased
for such machinery and equipment:

(1) For purposes of this subsection, machinery and equipment shall be deemed to be
used directly and primarily in the manufacture, assemblage, processing, finishing, storing,
warehousing or distributing of tangible personal property where such machinery and equip-
ment is used during a manufacturing, assembling, processing or finishing, storing, ware-
housing or distributing operation:

(A) To effect a direct and immediate physical change upon the tangible personal property;

(B) to guide or measure a direct and immediate physical change upon such property
where such function is an integral and essential part of tuning, verifying or aligning the
component parts of such property;

(C) to test or measure such property where such function is an integral part of the
production flow or function;

(D) to transport, convey or handle such property during the manufacturing, processing,
storing, warehousing or distribution operation at the plant or facility; or

(E) to place such property in the container, package or wrapping in which such property
is normally sold or transported.

(2) ~~Notwithstanding the manner in which machinery and equipment is treated by a~~
~~taxpayer for federal income tax purposes,~~ For purposes of this subsection ``machinery and
equipment used directly and primarily'' shall include, but not be limited to:

(A) Mechanical machines or ~~major~~ components thereof contributing to a manufacturing,
assembling or finishing process;

(B) molds and dies that determine the physical characteristics of the finished product
or its packaging material;

(C) testing equipment to determine the quality of the finished product;

(D) computers and related peripheral equipment that directly control or measure the
manufacturing process or which are utilized for engineering of the finished product; and

(E) computers and related peripheral equipment utilized for research and development
and product design.

(3) ``Machinery and equipment used directly and primarily'' shall not include:

(A) Hand tools;

(B) machinery, equipment and tools used in maintaining and repairing any type of ma-
chinery and equipment;

(C) transportation equipment not used in the manufacturing, assembling, processing,
furnishing, storing, warehousing or distributing process at the plant or facility;

(D) office machines and equipment including computers and related peripheral equip-
ment not directly and primarily used in controlling or measuring the manufacturing process;

(E) furniture and buildings; and

(F) machinery and equipment used in administrative, accounting, sales or other such
activities of the business;

(4) for purposes of this subsection, ``repair and replacement parts and accessories'' means
all parts and accessories for exempt machinery and equipment, including but not limited to
dies, jigs, molds, and patterns which are attached to exempt machinery or which are oth-
erwise used in production, short-lived replaceable parts that can be readily detached from
exempt machinery or equipment, such as belts, drill bits, grinding wheels, cutting bars and
saws, and other replacement parts for production equipment, including refractory brick and
other refractory items for kiln equipment used in production operations;

(ll) all sales of educational materials purchased for distribution to the public at no charge
by a nonprofit corporation organized for the purpose of encouraging, fostering and con-
ducting programs for the improvement of public health;

(mm) all sales of seeds and tree seedlings; fertilizers, insecticides, herbicides, germi-
cides, pesticides and fungicides; and services, purchased and used for the purpose of pro-
ducing plants in order to prevent soil erosion on land devoted to agricultural use;

(nn) except as otherwise provided in this act, all sales of services rendered by an ad-
vertising agency or licensed broadcast station or any member, agent or employee thereof;

(oo) all sales of tangible personal property purchased by a community action group or
agency for the exclusive purpose of repairing or weatherizing housing occupied by low
income individuals;

(pp) all sales of drill bits and explosives actually utilized in the exploration and produc-
tion of oil or gas;

(qq) all sales of tangible personal property and services purchased by a nonprofit mu-
seum or historical society or any combination thereof, including a nonprofit organization
which is organized for the purpose of stimulating public interest in the exploration of space
by providing educational information, exhibits and experiences, which is exempt from fed-
eral income taxation pursuant to section 501(c)(3) of the federal internal revenue code of
1986;

(rr) all sales of tangible personal property which will admit the purchaser thereof to any
annual event sponsored by a nonprofit organization which is exempt from federal income
taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986;

(ss) all sales of tangible personal property and services purchased by a public broad-
casting station licensed by the federal communications commission as a noncommercial
educational television or radio station;

(tt) all sales of tangible personal property and services purchased by or on behalf of a
not-for-profit corporation which is exempt from federal income taxation pursuant to section
501(c)(3) of the federal internal revenue code of 1986, for the sole purpose of constructing
a Kansas Korean War memorial;

(uu) all sales of tangible personal property and services purchased by or on behalf of
any rural volunteer fire-fighting organization for use exclusively in the performance of its
duties and functions;

(vv) all sales of tangible personal property purchased by any of the following organiza-
tions which are exempt from federal income taxation pursuant to section 501 (c)(3) of the
federal internal revenue code of 1986, for the following purposes, and all sales of any such
property by or on behalf of any such organization for any such purpose:

(1) The American Heart Association, Kansas Affiliate, Inc. for the purposes of providing
education, training, certification in emergency cardiac care, research and other related serv-
ices to reduce disability and death from cardiovascular diseases and stroke;

(2) the Kansas Alliance for the Mentally Ill, Inc. for the purpose of advocacy for persons
with mental illness and to education, research and support for their families;

(3) the Kansas Mental Illness Awareness Council for the purposes of advocacy for per-
sons who are mentally ill and to education, research and support for them and their families;

(4) the American Diabetes Association Kansas Affiliate, Inc. for the purpose of elimi-
nating diabetes through medical research, public education focusing on disease prevention
and education, patient education including information on coping with diabetes, and pro-
fessional education and training;

(5) the American Lung Association of Kansas, Inc. for the purpose of eliminating all
lung diseases through medical research, public education including information on coping
with lung diseases, professional education and training related to lung disease and other
related services to reduce the incidence of disability and death due to lung disease;

(6) the Kansas chapters of the Alzheimer's Disease and Related Disorders Association,
Inc. for the purpose of providing assistance and support to persons in Kansas with Alzhei-
mer's disease, and their families and caregivers; and

(ww) all sales of tangible personal property purchased by the Habitat for Humanity for
the exclusive use of being incorporated within a housing project constructed by such organ-
ization.

(xx) all sales of tangible personal property and services purchased by a nonprofit zoo
which is exempt from federal income taxation pursuant to section 501 (c)(3) of the federal
internal revenue code of 1986, or on behalf of such zoo by an entity itself exempt from
federal income taxation pursuant to section 50 (c)(3) of the federal internal revenue code
of 1986 contracted with to operate such zoo and all sales of tangible personal property or
services purchased by a contractor for the purpose of constructing, equipping, reconstruct-
ing, maintaining, repairing, enlarging, furnishing or remodeling facilities for any nonprofit
zoo which would be exempt from taxation under the provisions of this section if purchased
directly by such nonprofit zoo or the entity operating such zoo. Nothing in this subsection
shall be deemed to exempt the purchase of any construction machinery, equipment or tools
used in the constructing, equipping, reconstructing, maintaining, repairing, enlarging, fur-
nishing or remodeling facilities for any nonprofit zoo. When any nonprofit zoo shall contract
for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging,
furnishing or remodeling facilities, it shall obtain from the state and furnish to the contractor
an exemption certificate for the project involved, and the contractor may purchase materials
for incorporation in such project. The contractor shall furnish the number of such certificate
to all suppliers from whom such purchases are made, and such suppliers shall execute
invoices covering the same bearing the number of such certificate. Upon completion of the
project the contractor shall furnish to the nonprofit zoo concerned a sworn statement, on a
form to be provided by the director of taxation, that all purchases so made were entitled to
exemption under this subsection. All invoices shall be held by the contractor for a period
of five years and shall be subject to audit by the director of taxation. If any materials pur-
chased under such a certificate are found not to have been incorporated in the building or
other project or not to have been returned for credit or the sales or compensating tax
otherwise imposed upon such materials which will not be so incorporated in the building
or other project reported and paid by such contractor to the director of taxation not later
than the 20th day of the month following the close of the month in which it shall be deter-
mined that such materials will not be used for the purpose for which such certificate was
issued, the nonprofit zoo concerned shall be liable for tax on all materials purchased for the
project, and upon payment thereof it may recover the same from the contractor together
with reasonable attorney fees. Any contractor or any agent, employee or subcontractor
thereof, who shall use or otherwise dispose of any materials purchased under such a certif-
icate for any purpose other than that for which such a certificate is issued without the
payment of the sales or compensating tax otherwise imposed upon such materials, shall be
guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties
provided for in subsection (g) of K.S.A. 79-3615, and amendments thereto;

(yy) all sales of tangible personal property and services purchased by a parent-teacher
association or organization, and all sales of tangible personal property by or on behalf of
such association or organization;

(zz) all sales of machinery and equipment purchased by over-the-air, free access radio
or television station which is used directly and primarily for the purpose of producing a
broadcast signal or is such that the failure of the machinery or equipment to operate would
cause broadcasting to cease. For purposes of this subsection, machinery and equipment
shall include, but not be limited to, that required by rules and regulations of the federal
communications commission, and all sales of electricity which are essential or necessary for
the purpose of producing a broadcast signal or is such that the failure of the electricity would
cause broadcasting to cease;

(aaa) all sales of tangible personal property and services purchased by a religious or-
ganization which is exempt from federal income taxation pursuant to section 501 (c)(3) of
the federal internal revenue code, and used exclusively for religious purposes; and

(bbb) all sales of food for human consumption by an organization which is exempt from
federal income taxation pursuant to section 501 (c)(3) of the federal internal revenue code
of 1986, pursuant to a food distribution program which offers such food at a price below
cost in exchange for the performance of community service by the purchaser thereof.

Sec. 8. K.S.A. 79-3230 is hereby amended to read as follows: 79-3230. (a) The amount
of income taxes imposed by this act shall be assessed within three years after the return was
filed or the tax as shown to be due on the return was paid, whichever is the later date, and
no proceedings in court for the collection of such taxes shall be begun after the expiration
of such period. For purposes of this act any return filed before the 15th day of the fourth
month following the close of the taxable year shall be considered as being filed on the 15th
day of the fourth month following the close of the taxable year, and any tax shown to be
due on the return and paid before the 15th day of the fourth month following the close of
the taxable year shall be deemed to have been paid on the 15th day of the fourth month
following the close of the taxable year.

(b) In the case of a false or fraudulent return with intent to evade tax, the tax may be
assessed, or a proceeding in court for collection of such tax may be begun at any time.

(c) No refund or credit shall be allowed by the director of taxation after three years
from the date prescribed by law for filing the return, provided it was filed before the due
date, unless before the expiration of such period a claim therefor is filed by the taxpayer. If
the return was filed after the due date, a refund claim must be filed not later than three
years from the time the return was actually filed, or two years from the date the tax was
paid, whichever of such periods expires later. Where the assessment of any income tax
imposed by this act has been made within the period of limitation properly applicable
thereto, such tax may be collected by distraint or by a proceeding in court, but only if begun
within one year after the period of limitation as defined in this act.

(d) In case a taxpayer has made claim for a refund, the taxpayer shall have the right to
commence a suit for the recovery of the refund at the expiration of six months after the
filing of the claim for refund, if no action has been taken by the director of taxation.

(e) Before the expiration of time prescribed in this section for the assessment of addi-
tional tax or the filing of a claim for a refund, the director of taxation is authorized to enter
into an agreement in writing with the taxpayer consenting to the extension of the periods
of limitations as defined in this act for the assessment of tax or for the filing of a claim for
refund, at any time prior to the expiration of the period of limitations. The period so agreed
upon may be extended by subsequent agreements in writing made before the expiration of
the period previously agreed upon. A copy of all such agreements and extensions thereof
shall be filed with the director of taxation within 30 days after their execution.

(f) Any taxpayer whose income has been adjusted by the federal internal revenue service
or by the income tax collection agency of another state is required to report such adjustments
to the Kansas department of revenue by mail within 180 days of the date the federal or
other state adjustments are paid, agreed to or become final, whichever is earlier. Such
adjustments shall be reported by filing an amended return for the applicable taxable year
and a copy of the federal or state revenue agent's report detailing such adjustments. In the
event such taxpayer is a corporation, such report shall be by certified or registered mail.

Notwithstanding the provisions of subsection (a) or (c) of this section, additional income
taxes may be assessed and proceedings in court for collection of such taxes may be com-
menced and any refund or credit may be allowed by the director of taxation within 180 days
following receipt of any such report of adjustments by the Kansas department of revenue.
No assessment shall be made nor any refund or credit shall be allowable under the provisions
of this paragraph except to the extent the same is attributable to changes in the taxpayer's
income due to adjustments indicated by such report.

(g) In the event of failure to comply with the provisions of this section, the statute of
limitations shall be tolled.

Sec. 9. K.S.A. 79-2101 is hereby amended to read as follows: 79-2101. Except as pro-
vided by K.S.A. 79-2017, and amendments thereto, all the taxes on personal property that
remain due and unpaid on ~~February 16~~ January 1 or July 1 shall be collected in the following
manner:

The county treasurer, ~~between~~ on or before February 20 ~~and 25~~, shall send a notice by
mail to the person, firm, unincorporated association, company or corporation to whom such
taxes were assessed, and which remain unpaid on ~~February 16~~ January 1 of any year, to its
post office address as shown by the records in the office of the county ~~clerk~~ treasurer. The
county treasurer, ~~between~~ on or before July 10 ~~and 15~~, shall send a notice by mail to the
person, firm, unincorporated association, company or corporation to whom such taxes were
assessed, and which remain unpaid on July 1 of any year, to its post office address as shown
by the records in the office of the county ~~clerk~~ treasurer. Failure to receive any such notice
shall not relieve such person, firm, unincorporated association, company or corporation
defaulting in payment of personal taxes from any interest and costs attached thereto. Such
notice shall state the amount of personal tax charged against the party, and notify the party
that the tax may be paid by paying interest thereon from the date it became due and payable
to date of payment computed under the provisions of K.S.A. 79-2004a, and amendments
thereto.

If such taxes remain unpaid for a period of 30 14 days after mailing such notice, the
county treasurer shall issue a warrant signed by the treasurer directed to the sheriff of the
county, commanding the sheriff to levy the amount of such unpaid taxes and the interest
thereon, together with the costs of executing the warrant and the sheriff's fees for collecting
the same, upon any personal property, tangible or intangible, of the person, firm, unincor-
porated association, company or corporation to whom such taxes were assessed. Such war-
rant shall be delivered to the sheriff. Upon receipt of such tax warrant, the sheriff shall
proceed to collect the taxes the same as upon execution, except that ~~where such~~ taxes ~~were~~
levied and assessed pursuant to K.S.A. 79-329 through 79-334, and amendments thereto,
~~they~~ shall be collected as follows:

The sheriff or county treasurer shall cause notice to be given by registered mail to the
purchaser of the oil and gas from such lease of the amount of such delinquent taxes and
the name of the person against whom they were assessed ~~and from~~. From and after the
receipt of such notice such purchaser shall not pay to the person owing the taxes or any of
the proceeds of the sale of any oil or gas from such lease, but shall pay the proceeds to the
sheriff until the full amount of such taxes and costs are paid after which the purchaser may
resume the payments for such oil or gas to such person, but this exception shall not prevent
the levy of an execution and sale of the leasehold interest or the physical personal property
on any such lease for the payment of delinquent taxes owed by its owner. Tax warrants
issued pursuant to K.S.A. 79-329 through 79-334, and amendments thereto shall not be
required to be returned prior to 24 months after issuance.

The sheriff, as soon as ~~the sheriff collects~~ collecting the tax warrant, shall make a return
thereof and shall make a return of all tax warrants delivered to the sheriff on or before
October 1 of the year following the year in which the tax was levied except as otherwise
provided by the preceding paragraph. If the warrant so returned shows that the tax has
been collected, the sheriff shall pay the tax to the county treasurer. If such return shows
that such tax has not been collected, the county treasurer shall file with the clerk of the
district court of the treasurer's county an abstract of the total amount of unpaid taxes and
interest due plus penalties and costs of executing the warrant. The clerk shall enter the total
amount ~~of the unpaid taxes~~ in the appearance docket and note the entry in general index.
No fee shall be charged for making the entry. The total amount shall become a judgment
in the same manner and to the same extent as any other judgment under the code of civil
procedure and shall become a lien on real estate from and after the time of the filing thereof.
A transcript of the judgment may be filed with the clerk of the district court in any other
county and when it is entered in the manner provided above it shall become a lien upon
real estate located in such county in the same manner as is provided in case of other judg-
ments, except that no fee shall be charged for making the entry. Execution, garnishment or
other proceedings in aid of execution may issue within the county or to any other county
on the judgment in the same manner as on judgments under the code of civil procedure
except that any real estate taken upon execution for the collection of such taxes shall be
sold without appraisement. None of the exemptions provided for in the code of civil pro-
cedure shall apply to any such judgment but no such judgment secured for taxes on personal
property shall be levied against a homestead.

At the time of filing the abstract of the taxes, interest, penalties and costs of executing the
warrant with the clerk of the district court, the county treasurer shall serve notice, in writing,
on the county attorney of such filing. It shall be the duty of the county attorney to commence
such proceedings as are necessary for the collection of such judgment. If execution is not
issued within five years from the date of the entry of any such judgment, or if five years
shall have intervened between the date of the last execution issued on such judgment, and
the time of issuing another writ of execution thereon, such judgment shall become dormant,
and shall cease to operate as a lien on the real estate of the delinquent taxpayer. Such
dormant judgment may be revived in like manner as dormant judgments under the code of
civil procedure. Any such judgment remaining uncollected after 20 years may be allowed
to become dormant if the county commissioners determine, after consideration of all rele-
vant facts, that it is not reasonable to expect such judgment will be collected. The board of
county commissioners may allow such judgment to become dormant at any time if the
original amount of the judgment was less than $50.

Sec. 10. K.S.A. 1997 Supp. 19-101a is hereby amended to read as follows: 19-101a. (a)
The board of county commissioners may transact all county business and perform all powers
of local legislation and administration it deems appropriate, subject only to the following
limitations, restrictions or prohibitions:

(1) Counties shall be subject to all acts of the legislature which apply uniformly to all
counties.

(2) Counties may not consolidate or alter county boundaries.

(3) Counties may not affect the courts located therein.

(4) Counties shall be subject to acts of the legislature prescribing limits of indebtedness.

(5) In the exercise of powers of local legislation and administration authorized under
provisions of this section, the home rule power conferred on cities to determine their local
affairs and government shall not be superseded or impaired without the consent of the
governing body of each city within a county which may be affected.

(6) Counties may not legislate on social welfare administered under state law enacted
pursuant to or in conformity with public law No. 271--74th congress, or amendments
thereof.

(7) Counties shall be subject to all acts of the legislature concerning elections, election
commissioners and officers and their duties as such officers and the election of county
officers.

(8) Counties shall be subject to the limitations and prohibitions imposed under K.S.A.
12-187 to 12-195, inclusive, and amendments thereto, prescribing limitations upon the levy
of retailers' sales taxes by counties.

(9) Counties may not exempt from or effect changes in statutes made nonuniform in
application solely by reason of authorizing exceptions for counties having adopted a charter
for county government.

(10) No county may levy ad valorem taxes under the authority of this section upon real
property located within any redevelopment area established under the authority of K.S.A.
12-1772, and amendments thereto, unless the resolution authorizing the same specifically
authorized a portion of the proceeds of such levy to be used to pay the principal of and
interest upon bonds issued by a city under the authority of K.S.A. 12-1774, and amendments
thereto.

(11) Counties shall have no power under this section to exempt from any statute au-
thorizing or requiring the levy of taxes and providing substitute and additional provisions
on the same subject, unless the resolution authorizing the same specifically provides for a
portion of the proceeds of such levy to be used to pay a portion of the principal and interest
on bonds issued by cities under the authority of K.S.A. 12-1774, and amendments thereto.

(12) Counties may not exempt from or effect changes in the provisions of K.S.A. 19-
4601 to 19-4625, inclusive, and amendments thereto.

(13) Except as otherwise specifically authorized by K.S.A. 12-1,101 to 12-1,109, inclu-
sive, and amendments thereto, counties may not levy and collect taxes on incomes from
whatever source derived.

(14) Counties may not exempt from or effect changes in K.S.A. 19-430, and amend-
ments thereto. Any charter resolution adopted by a county prior to July 1, 1983, exempting
from or effecting changes in K.S.A. 19-430, and amendments thereto, is null and void.

(15) Counties may not exempt from or effect changes in K.S.A. 19-302, 19-502b, 19-
503, 19-805 or 19-1202, and amendments thereto.

(16) Counties may not exempt from or effect changes in K.S.A. 13-13a26, and amend-
ments thereto. Any charter resolution adopted by a county, prior to the effective date of
this act, exempting from or effecting changes in K.S.A. 13-13a26, and amendments thereto,
is null and void.

(17) Counties may not exempt from or effect changes in K.S.A. 71-301, and amend-
ments thereto. Any charter resolution adopted by a county, prior to the effective date of
this act, exempting from or effecting changes in K.S.A. 71-301, and amendments thereto,
is null and void.

(18) Counties may not exempt from or effect changes in K.S.A. 19-15,139, 19-15,140
and 19-15,141, and amendments thereto. Any charter resolution adopted by a county prior
to the effective date of this act, exempting from or effecting changes in such sections is null
and void.

(19) Counties may not exempt from or effect changes in the provisions of K.S.A. 12-
1223, 12-1225, 12-1225a, 12-1225b, 12-1225c and 12-1226, and amendments thereto, or
the provisions of K.S.A. 1997 Supp. 12-1260 to 12-1270, inclusive, and amendments thereto,
and 12-1276, and amendments thereto.

(20) Counties may not exempt from or effect changes in the provisions of K.S.A. 19-
211, and amendments thereto.

(21) Counties may not exempt from or effect changes in the provisions of K.S.A. 19-
4001 to 19-4015, inclusive, and amendments thereto.

(22) Counties may not regulate the production or drilling of any oil or gas well in any
manner which would result in the duplication of regulation by the state corporation com-
mission and the Kansas department of health and environment pursuant to chapter 55 and
chapter 65 of the Kansas Statutes Annotated and any rules and regulations adopted pursuant
thereto. Counties may not require any license or permit for the drilling or production of oil
and gas wells. Counties may not impose any fee or charge for the drilling or production of
any oil or gas well.

(23) Counties may not exempt from or effect changes in K.S.A. 79-41a04, and amend-
ments thereto.

(24) Counties may not exempt from or effect changes in K.S.A. 1997 Supp. 79-1611,
and amendments thereto.

(25) Counties may not exempt from or effect changes in K.S.A. 1997 Supp. 79-1494,
and amendments thereto.

(26) Counties may not exempt from or effect changes in subsection (b) of K.S.A. 19-
202, and amendments thereto.

(27) Counties may not exempt from or effect changes in subsection (b) of K.S.A. 19-
204, and amendments thereto.

(28) Counties may not levy or impose an excise, severance or any other tax in the nature
of an excise tax upon the physical severance and production of any mineral or other material
from the earth or water. Any resolution adopted by any county prior to the effective date
of this act imposing or levying any such tax is null and void.

(29) Counties may not exempt from or effect changes in K.S.A. 79-2017 or 79-2101, and
amendments thereto. Any charter resolution adopted prior to the effective date of this act,
which affected the provisions of K.S.A. 79-2017 or 79-2101, and amendments thereto, is
hereby declared to be null and void.

(b) Counties shall apply the powers of local legislation granted in subsection (a) by
resolution of the board of county commissioners. If no statutory authority exists for such
local legislation other than that set forth in subsection (a) and the local legislation proposed
under the authority of such subsection is not contrary to any act of the legislature, such
local legislation shall become effective upon passage of a resolution of the board and pub-
lication in the official county newspaper. If the legislation proposed by the board under
authority of subsection (a) is contrary to an act of the legislature which is applicable to the
particular county but not uniformly applicable to all counties, such legislation shall become
effective by passage of a charter resolution in the manner provided in K.S.A. 19-101b, and
amendments thereto.'';

By renumbering existing sections accordingly;

Also on page 15, in line 43, after ``K.S.A.'' by inserting ``79-2101, 79-2804g, 79-2804j, 79-
3230, 79-3234, 79-3234a and 79-3606, as amended by section 31 of 1998 Senate Bill No.
493 and K.S.A.'';

On page 16, in line 2, by striking ``12-1771'' and inserting ``19-101a'';

In the title, by striking all in line 13; in line 14, by striking all before the semicolon and
inserting ``taxation''; also in line 14, after ``K.S.A.'' by inserting ``79-2101, 79-2804g, 79-3230,
79-3234 and 79-3606, as amended by section 31 of 1998 Senate Bill No. 493 and K.S.A.'';
in line 17, by striking ``12-1771'' and inserting ``19-101a''; also, in line 17, before the period,
by inserting ``; also repealing K.S.A. 79-2804j and 79-3234a'';

And your committee on conference recommends the adoption of this report.

Audrey Langworthy

David R. Corbin

Janis K. Lee

Conferees on part of Senate

Phill Kline

Tony Powell

Bruce Larkin

Conferees on part of House

Senator Langworthy moved the Senate adopt the Conference Committee report on HB
2584.

On roll call, the vote was: Yeas 35, nays 5, present and passing 0; absent or not voting 0.

Yeas: Barone, Becker, Biggs, Bond, Brownlee, Clark, Corbin, Donovan, Downey, Emert,
Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger, Harrington, Hensley, Jones, Jordan,
Karr, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Praeger, Ranson, Salisbury,
Salmans, Schraad, Steffes, Steineger, Vidricksen.

Nays: Bleeker, Huelskamp, Pugh, Tyson, Umbarger.

The Conference Committee report was adopted.

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 2312.

FINAL ACTION OF BILLS AND CONCURRENT RESOLUTIONS

On motion of Senator Emert an emergency was declared by a 2
3/ constitutional majority,
and HB 2312 was advanced to Final Action, subject to amendment, debate and roll call.

HB 2312, An Act concerning the uniform controlled substances act; amending K.S.A.
1997 Supp. 65-4111 and repealing the existing section, was considered on final action.

The bill was amended by motion of Senator Praeger on page 2, by striking all in lines 23
through 43;

On page 3, by striking all in lines 1 through 30 and inserting the following:

``Section 1. K.S.A. 1997 Supp. 65-4111 is hereby amended to read as follows: 65-4111.
(a) The controlled substances listed in this section are included in schedule IV and the
number set forth opposite each drug or substance is the DEA controlled substances code
which has been assigned to it.

(b) Any material, compound, mixture or preparation which contains any quantity of the
following substances including its salts, isomers and salts of isomers whenever the existence
of such salts, isomers and salts of isomers is possible within the specific chemical designation
and having a potential for abuse associated with a depressant effect on the central nervous
system:

(1)Alprazolam[cm2882[cm (2)Barbital[cm2145[cm (3)Bromazepam[cm2748[cm (4)Camazepam[cm2749[cm (5)Chloral betaine[cm2460[cm (6)Chloral hydrate[cm2465[cm (7)Chlordiazepoxide[cm2744[cm (8)Clobazam[cm2751[cm (9)Clonazepam[cm2737[cm (10) Clorazepate[cm2768[cm (11) Clotiazepam[cm2752[cm (12) Cloxazolam[cm2753[cm (13) Delorazepam[cm2754[cm (14) Diazepam[cm2765[cm (15) Estazolam[cm2756[cm (16) Ethchlorvynol[cm2540[cm (17) Ethinamate[cm2545[cm (18) Ethyl loflazepate[cm2758[cm (19) Fludiazepam[cm2759[cm (20) Flunitrazepam[cm2763[cm (21) Flurazepam[cm2767[cm (22) Halazepam[cm2762[cm (23) Haloxazolam[cm2771[cm (24) Ketazolam[cm2772[cm (25) Loprazolam[cm2773[cm (26) Lorazepam[cm2885[cm (27) Lormetazepam[cm2774[cm (28) Mebutamate[cm2800[cm (29) Medazepam[cm2836[cm (30) Meprobamate[cm2820[cm (31) Methohexital[cm2264[cm (32) Methylphenobarbital (mephobarbital)[cm2250[cm (33) Midazolam[cm2884[cm (34) Nimetazepam[cm2837[cm (35) Nitrazepam[cm2834[cm (36) Nordiazepam[cm2838[cm (37) Oxazepam[cm2835[cm (38) Oxazolam[cm2839[cm (39) Paraldehyde[cm2585[cm (40) Petrichloral[cm2591[cm (41) Phenobarbital[cm2285[cm (42) Pinazepam[cm2883[cm (43) Prazepam[cm2764[cm (44) Quazepam[cm2881[cm (45) Temazepam[cm2925[cm (46) Tetrazepam[cm2886[cm (47) Triazolam[cm2887[cm (48) Zolpidem[cm2783[cm (49) Gamma hydroxybutyric acid

(c) Any material, compound, mixture, or preparation which contains any quantity of
fenfluramine (1670), including its salts, isomers (whether optical, position or geometric) and
salts of such isomers, whenever the existence of such salts, isomers and salts of isomers is
possible. The provisions of this subsection (c) shall expire on the date fenfluramine and its
salts and isomers are removed from schedule IV of the federal controlled substances act (21
United States code 812; 21 code of federal regulations 1308.14).

(d) Unless specifically excepted or unless listed in another schedule, any material, com-
pound, mixture or preparation which contains any quantity of the following substances
having a stimulant effect on the central nervous system, including its salts, isomers (whether
optical, position or geometric) and salts of such isomers whenever the existence of such
salts, isomers and salts of isomers is possible within the specific chemical designation:

(1)Cathine (( + )-norpseudoephedrine)[cm1230[cm (2)Diethylpropion[cm1610[cm (3)Fencamfamin[cm1760[cm (4)Fenproporex[cm1575[cm (5)Mazindol[cm1605[cm (6)Mefenorex[cm1580[cm (7) Pemoline (including organometallic complexes and chelates
thereof)[cm1530[cm (8)Phentermine[cm1640

The provisions of this subsection (d)(8) shall expire on the date phentermine and its salts
and isomers are removed from schedule IV of the federal controlled substances act (21
United States code 812; 21 code of federal regulations 1308.14).

(9)Pipradrol[cm1750[cm (10)SPA((-)-1-dimethylamino-1,2-diphenylethane)[cm1635

(e) Unless specifically excepted or unless listed in another schedule, any material, com-
pound, mixture or preparation which contains any quantity of the following, including salts
thereof:

(1)Pentazocine

9709

(f) Unless specifically excepted or unless listed in another schedule, any material, com-
pound, mixture or preparation containing any of the following narcotic drugs, or their salts
calculated as the free anhydrous base or alkaloid, in limited quantities as set forth below:

(1) Not more than 1 milligram of difenoxin and not less than 25
micrograms of atropine sulfate per dosage unit[cm9167[cm (2) Dextropropoxyphene
(alpha-( + )-4-dimethylamino-1,2-diphenyl-3- methyl-2-propionoxybutane)[cm9278

(g) Butyl nitrite and its salts, isomers, esters, ethers or their salts.

(h) The board may except by rule and regulation any compound, mixture or preparation
containing any depressant substance listed in subsection (b) from the application of all or
any part of this act if the compound, mixture or preparation contains one or more active
medicinal ingredients not having a depressant effect on the central nervous system, and if
the admixtures are included therein in combinations, quantity, proportion or concentration
that vitiate the potential for abuse of the substances which have a depressant effect on the
central nervous system.

Sec. 2. K.S.A. 1997 Supp. 65-4111 is hereby repealed.'';

Any by renumbering sections accordingly;

Also on page 3, in line 32, by striking ``statute book'' and inserting ``Kansas register'';

On page 1, in the title, by striking all in lines 10 through 14 and inserting ``AN ACT
concerning the uniform controlled substances act; amending K.S.A. 1997 Supp. 65-4111
and repealing the existing section.''.

On roll call, the vote was: Yeas 40, nays 0, present and passing 0; absent or not voting 0.

Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Downey,
Emert, Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger, Harrington, Hensley, Huel-
skamp, Jones, Jordan, Karr, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Prae-
ger, Pugh, Ranson, Salisbury, Salmans, Schraad, Steffes, Steineger, Tyson, Umbarger,
Vidricksen.

The bill passed, as amended.

May 3, 1998

ORIGINAL MOTION

On motion of Senator Hardenburger, the Senate acceded to the request of the House
for a conference on S. Sub. HB 2860.

The President appointed Senators Hardenburger, Becker and Gooch as conferees on the
part of the Senate.

On motion of Senator Emert, the Senate recessed.

______ The Senate met pursuant to recess with President Bond in the chair.

INTRODUCTION OF BILLS AND CONCURRENT RESOLUTIONS

The following concurrent resolution was introduced and read:

SENATE CONCURRENT RESOLUTION No. 1622--

By Senators Schraad, Becker, Bond, Brownlee, Jordan and Langworthy

A CONCURRENT RESOLUTION requesting the Legislative Coordinating Council to ap-
point a special committee to study the issue of driving privileges for teenage drivers.

WHEREAS, The Legislature recognizes that the issue of teenage driving has many points
of view; and

WHEREAS, The Legislature is also aware of the concerns over the apparent violations
of the current restrictions by young drivers and the lack of enforcement of such restrictions;
and

WHEREAS, The Legislature also recognizes that the safety of all Kansas highway users,
especially the safety of the teenage drivers of the state, should be the paramount and over-
riding concern of all citizens of the state of Kansas: Now, therefore,

Be it resolved by the Senate of the State of Kansas, the House of Representatives concurring
therein: That the Legislative Coordinating Council is hereby requested to appoint a special
committee to study the issue of driving privileges for teenage drivers; and

Be it further resolved: That the special committee complete its study and submit its
report to the Legislative Coordinating Council by no later than December 1, 1998.

On emergency motion of Senator Schraad SCR 1622 was adopted by voice vote.

INTRODUCTION OF ORIGINAL MOTIONS AND SENATE RESOLUTIONS

Senators Oleen and Donovan introduced the following Senate resolution, which was read:

SENATE RESOLUTION No. 1869--

A RESOLUTION congratulating and commending Jonathan N. Winkler. WHEREAS, Jonathan N. Winkler, of Wichita and a senior at Kansas State University,
has been selected to receive a Rhodes Scholarship; and

WHEREAS, Jonathan N. Winkler, who has triple majors of physics, mathematics and
English, will receive two years of graduate study at Oxford University in England valued at
$40,000-$60,000. Thirty-two Rhodes Scholarships are awarded annually in the United
States, and six Kansas State University students have received Rhodes Scholarships since
1986; and

WHEREAS, Jonathan N. Winkler has been an honor roll student throughout his college
career. He was a 1995 Goldwater Scholarship winner, is secretary of the College of Arts
and Sciences honors council, past secretary of the math club and current webmaster of the
physics club. He has worked as a columnist on the Kansas State Collegian student newspaper
and is editor of the Arts and Sciences Honors newsletter; and

WHEREAS, Jonathan N. Winkler is a 1993 graduate of Wichita Southeast High School
and the son of Mary Ann and Dana J. Winkler of Wichita: Now, therefore,

Be it resolved by the Senate of the State of Kansas: That we congratulate and commend
Jonathan N. Winkler for being selected to receive a Rhodes Scholarship; and

Be it further resolved: That the Secretary of the Senate be directed to send five enrolled
copies of this resolution to Senator Oleen for distribution to Jonathan N. Winkler and
university officials.

On emergency motion of Senator Donovan SR 1869 was adopted unanimously.

Senators Oleen, Barone, Brownlee, Karr and Tyson introduced the following Senate res-
olution, which was read:

SENATE RESOLUTION No. 1870--

A RESOLUTION congratulating and commending the Kansas State University livestock
judging team. WHEREAS, The Kansas State University livestock team won an unprecedented fourth
consecutive National Intercollegiate Livestock Contest on November 17, 1997, at Louisville,
Kentucky, in competition with more than 40 colleges and universities and 200 competitors
nationwide; and

WHEREAS, The Kansas State University coach, Scott Schaake, assistant professor of
animal sciences and industry, was selected as the national coach-of-the-year for the second
consecutive year; and

WHEREAS, Kansas State University has sponsored a varsity livestock judging team since
1903 and has won 13 national titles, second only to Iowa State University's 20 national titles.
The team had won three consecutive titles in 1938; and

WHEREAS, The 10 member team, all seniors, was composed of Wade Franklin of Tuc-
umcari, New Mexico, Jered Shipman of Girard, Les Wankel of Tallula, Illinois, Randy
Mullinix of Woodbine, Maryland, Dustin Dean of Hadeville, Missouri, Chad Breiner of
Alma, Clay Breiner of Alma, Ryan Higbie of Williamsburg, Bill Disberger of Council Grove
and Lee Stremsterfer of Pleasant Plains, Illinois: Now, therefore,

Be it resolved by the Senate of the State of Kansas: That we congratulate and commend
the Kansas State University livestock judging team and its coach for winning its fourth
consecutive national championship; and

Be it further resolved: That the Secretary of the Senate be directed to send 15 enrolled
copies of this resolution to Senator Oleen for presentation to team members and university
officials.

On emergency motion of Senator Tyson SR 1870 was adopted unanimously.

REPORTS OF STANDING COMMITTEES

Committee on Ways and Means recommends SB 501, as amended by House on Final
Action, be amended on page 6, by striking all in lines 11 through 43;

By striking all on pages 7 through 17;

On page 18, by striking all in lines 1 through 4;

And by renumbering sections accordingly;

Also on page 18, by striking all in lines 8 through 10;

And by renumbering sections accordingly;

On page 1, in the title, in line 12, by striking ``public'' and inserting ``salaries and com-
pensation for state''; in line 13, by striking all after the first semicolon; by striking all in lines
14 through 17; in line 18, by striking all before ``amending''; also in line 18, by striking ``20-
2605, 74-''; in line 19, by striking ``4954,''; also in line 19, by striking the last comma and
inserting ``and''; in line 20, by striking ``, 75-4360 and 75-6108''; in line 21, by striking the
first comma and inserting ``and''; also in line 21, by striking ``, 74-4920 and 74-4967''; and
the bill be passed as amended.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2185, 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 1, in line 18, by striking ``1996'' and inserting ``1997'';

On page 2, in line 7, by striking ``1996'' and inserting ``1997'';

On page 7, by striking all in lines 20 and 21 and inserting in lieu thereof the following:

``Sec. 3. K.S.A. 1997 Supp. 39-923 is hereby amended to read as follows: 39-923. (a)
As used in this act:

(1) ``Adult care home'' means any nursing facility, nursing facility for mental health,
intermediate care facility for the mentally retarded, assisted living facility, residential health
care facility, home plus, boarding care home and adult day care facility, all of which clas-
sifications of adult care homes are required to be licensed by the secretary of health and
environment.

(2) ``Nursing facility'' means any place or facility operating 24 hours a day, seven days
a week, caring for six or more individuals not related within the third degree of relationship
to the administrator or owner by blood or marriage and who, due to functional impairments,
need skilled nursing care to compensate for activities of daily living limitations.

(3) ``Nursing facility for mental health'' means any place or facility operating 24 hours
a day, seven days a week caring for six or more individuals not related within the third
degree of relationship to the administrator or owner by blood or marriage and who, due to
functional impairments, need skilled nursing care and special mental health services to
compensate for activities of daily living limitations.

(4) ``Intermediate care facility for the mentally retarded'' means any place or facility
operating 24 hours a day, seven days a week caring for six or more individuals not related
within the third degree of relationship to the administrator or owner by blood or marriage
and who, due to functional impairments caused by mental retardation or related conditions
need services to compensate for activities of daily living limitations.

(5) ``Assisted living facility'' means any place or facility caring for six or more individuals
not related within the third degree of relationship to the administrator, operator or owner
by blood or marriage and who, by choice or due to functional impairments, may need
personal care and may need supervised nursing care to compensate for activities of daily
living limitations and in which the place or facility includes apartments for residents and
provides or coordinates a range of services including personal care or supervised nursing
care available 24 hours a day, seven days a week for the support of resident independence.
The provision of skilled nursing procedures to a resident in an assisted living facility is not
prohibited by this act. Generally, the skilled services provided in an assisted living facility
shall be provided on an intermittent or limited term basis, or if limited in scope, a regular
basis.

(6) ``Residential health care facility'' means any place or facility, or a contiguous portion
of a place or facility, caring for six or more individuals not related within the third degree
or relationship to the administrator, operator or owner by blood or marriage and who, by
choice or due to functional impairments, may need personal care and may need supervised
nursing care to compensate for activities of daily living limitations and in which the place
or facility includes individual living units and provides or coordinates personal care or su-
pervised nursing care available on a 24-hour, seven-day-a-week basis for the support of
resident independence. The provision of skilled nursing procedures to a resident in a resi-
dential health care facility is not prohibited by this act. Generally, the skilled services pro-
vided in a residential health care facility shall be provided on an intermittent or limited term
basis, or if limited in scope, a regular basis.

(7) ``Home plus'' means any residence or facility caring for not more than five individuals
not related within the third degree of relationship to the operator or owner by blood or
marriage unless the resident in need of care is approved for placement by the secretary of
the department of social and rehabilitation services, and who, due to functional impairment,
needs personal care and may need supervised nursing care to compensate for activities of
daily living limitations. The level of care provided residents shall be determined by prepa-
ration of the operator and rules and regulations developed by the department of health and
environment.

(8) ``Boarding care home'' means any place or facility operating 24 hours a day, seven
days a week, caring for not more than 10 individuals not related within the third degree of
relationship to the operator or owner by blood or marriage and who, due to functional
impairment, need supervision of activities of daily living but who are ambulatory and essen-
tially capable of managing their own care and affairs.

(9) ``Adult day care'' means any place or facility operating less than 24 hours a day caring
for individuals not related within the third degree of relationship to the operator or owner
by blood or marriage and who, due to functional impairment need supervision of or assis-
tance with activities of daily living.

(10) ``Place or facility'' means a building or any one or more complete floors of a build-
ing, or any one or more complete wings of a building, or any one or more complete wings
and one or more complete floors of a building, and the term ``place or facility'' may include
multiple buildings.

(11) ``Skilled nursing care'' means services performed by or under the immediate su-
pervision of a registered professional nurse and additional licensed nursing personnel.
Skilled nursing includes administration of medications and treatments as prescribed by a
licensed physician or dentist; and other nursing functions which require substantial nursing
judgment and skill based on the knowledge and application of scientific principles.

(12) ``Supervised nursing care'' means services provided by or under the guidance of a
licensed nurse with initial direction for nursing procedures and periodic inspection of the
actual act of accomplishing the procedures; administration of medications and treatments
as prescribed by a licensed physician or dentist and assistance of residents with the per-
formance of activities of daily living.

(13) ``Resident'' means all individuals kept, cared for, treated, boarded or otherwise
accommodated in any adult care home.

(14) ``Person'' means any individual, firm, partnership, corporation, company, associa-
tion or joint-stock association, and the legal successor thereof.

(15) ``Operate an adult care home'' means to own, lease, establish, maintain, conduct
the affairs of or manage an adult care home, except that for the purposes of this definition
the word ``own'' and the word ``lease'' shall not include hospital districts, cities and counties
which hold title to an adult care home purchased or constructed through the sale of bonds.

(16) ``Licensing agency'' means the secretary of health and environment.

(17) ``Skilled nursing home'' means a nursing facility.

(18) ``Intermediate nursing care home'' means a nursing facility.

(19) ``Apartment'' means a private unit which includes, but is not limited to, a toilet
room with bathing facilities, a kitchen, sleeping, living and storage area and a lockable door.

(20) ``Individual living unit'' means a private unit which includes, but is not limited to,
a toilet room with bathing facilities, sleeping, living and storage area and a lockable door.

(21) ``Operator'' means an individual who operates an assisted living facility or residen-
tial health care facility with fewer than 61 residents, a home plus or adult day care facility
and has completed a course approved by the secretary of health and environment on prin-
ciples of assisted living and has successfully passed an examination approved by the licensing
agency on principles of assisted living and such other requirements as may be established
by the licensing agency by rules and regulations.

(22) ``Activities of daily living'' means those personal, functional activities required by
an individual for continued well-being, including but not limited to eating, nutrition, dress-
ing, personal hygiene, mobility, toileting.

(23) ``Personal care'' means care provided by staff to assist an individual with, or to
perform activities of daily living.

(24) ``Functional impairment'' means an individual has experienced a decline in physical,
mental and psychosocial well-being and as a result, is unable to compensate for the effects
of the decline.

(25) ``Kitchen'' means a food preparation area that includes a sink, refrigerator and a
microwave oven or stove.

(26) The term ``intermediate personal care home'' for purposes of those individuals
applying for or receiving veterans' benefits means residential health care facility.

(b) The term ``adult care home'' shall not include institutions operated by federal or
state governments, except institutions operated by the Kansas commission on veterans af-
fairs, hospitals or institutions for the treatment and care of psychiatric patients, child care
facilities, maternity centers, hotels, offices of physicians or hospices which are certified to
participate in the medicare program under 42 code of federal regulations, chapter IV, section
418.1 et seq. and amendments thereto and which provide services only to hospice patients.

(c) Facilities licensed under K.S.A. 39-1501 et seq. and amendments thereto or K.S.A.
75-3307b and amendments thereto or K.S.A. 39-923 as an intermediate personal care home
or with license applications on file with the licensing agency as intermediate personal care
homes on or before January 1, 1995, shall have the option of becoming licensed as either
an assisted living facility or a residential health care facility without being required to add
kitchens or private baths.

(d) Nursing facilities in existence on the effective date of this act changing licensure
categories to become residential health care facilities shall be required to provide private
bathing facilities in a minimum of 20% of the individual living units.

(e) Facilities licensed under the adult care home licensure act on the day immediately
preceding the effective date of this act shall continue to be licensed facilities until the annual
renewal date of such license and may renew such license in the appropriate licensure cat-
egory under the adult care home licensure act subject to the payment of fees and other
conditions and limitations of such act.

(f) Nursing facilities with less than 60 beds converting a portion of the facility to resi-
dential health care shall have the option of licensing for residential health care for less than
six individuals but not less than 10% of the total bed count within a contiguous portion of
the facility.

~~(f)~~ (g) The licensing agency may by rule and regulation change the name of the different
classes of homes when necessary to avoid confusion in terminology and the agency may
further amend, substitute, change and in a manner consistent with the definitions established
in this section, further define and identify the specific acts and services which shall fall
within the respective categories of facilities so long as the above categories for adult care
homes are used as guidelines to define and identify the specific acts.

Sec. 4. K.S.A. 39-1401 is hereby amended to read as follows: 39-1401. As used in this
act:

(a) ``Resident'' means:

(1) Any resident, as defined by K.S.A. 39-923 and amendments thereto; or

~~(2) any client cared for in an adult family home; or~~

~~(3)~~ (2) any individual kept, cared for, treated, boarded or otherwise accommodated in
a medical care facility; or

~~(4)( any individual with mental retardation or a developmental disability receiving serv-~~
~~ices through a community mental retardation facility or residential facility licensed under~~
~~K.S.A. 75-3307b and amendments thereto; or~~

~~(5)~~ (3) any individual, kept, cared for, treated, boarded or otherwise accommodated in
a state psychiatric hospital or state institution for the mentally retarded.

(b) ``Adult care home'' has the meaning ascribed thereto in K.S.A. 39-923 and amend-
ments thereto.

~~(c) ``Adult family home'' has the meaning ascribed thereto in K.S.A. 39-1501 and amend-~~
~~ments thereto.~~

~~(d)~~ (c) ``In need of protective services'' means that a resident is unable to perform or
obtain services which are necessary to maintain physical or mental health, or both.

~~(e)~~ (d) ``Services which are necessary to maintain physical and mental health'' include,
but are not limited to, the provision of medical care for physical and mental health needs,
the relocation of a resident to a facility or institution able to offer such care, assistance in
personal hygiene, food, clothing, adequately heated and ventilated shelter, protection from
health and safety hazards, protection from maltreatment the result of which includes, but
is not limited to, malnutrition, deprivation of necessities or physical punishment and trans-
portation necessary to secure any of the above stated needs, except that this term shall not
include taking such person into custody without consent, except as provided in this act.

~~(f)~~ (e) ``Protective services'' means services provided by the state or other governmental
agency or any private organizations or individuals which are necessary to prevent abuse,
neglect or exploitation. Such protective services shall include, but not be limited to, evalu-
ation of the need for services, assistance in obtaining appropriate social services and assis-
tance in securing medical and legal services.

~~(g)~~ (f) ``Abuse'' means ~~neglect, infliction of physical or mental injury or deprivation by~~
~~a caretaker of services which are necessary to maintain physical and mental health~~ any act
or failure to act performed intentionally or recklessly that causes or is likely to cause harm
to a resident, including:

(1) Infliction of physical or mental injury;

(2) any sexual act with a resident when the resident does not consent or when the other
person knows or should know that the resident is incapable of resisting or declining consent
to the sexual act due to mental deficiency or disease or due to fear of retribution or hardship;

(3) unreasonable use of a physical restraint, isolation or medication that harms or is
likely to harm a resident;

(4) unreasonable use of a physical or chemical restraint, medication or isolation as pun-
ishment, for convenience, in conflict with a physician's orders or as a substitute for treatment,
except where such conduct or physical restraint is in furtherance of the health and safety of
the resident or another resident;

(5) a threat or menacing conduct directed toward a resident that results or might rea-
sonably be expected to result in fear or emotional or mental distress to a resident;

(6) fiduciary abuse; or

(7) omission or deprivation by a caretaker or another person of goods or services which
are necessary to avoid physical or mental harm or illness.

~~(h)~~ (g) ``Neglect'' means the failure ~~of a caretaker to maintain reasonable care and~~
~~treatment to such an extent that the resident's health or emotional well-being is injured~~ or
omission by one's self, caretaker or another person to provide goods or services which are
reasonably necessary to ensure safety and well-being and to avoid physical or mental harm
or illness.

~~(i)~~ (h) ``Caretaker'' means a person or institution who has assumed the responsibility for
the care of the resident voluntarily, by contract or by order of a court of competent juris-
diction.

~~(j)~~ (i) ``Exploitation'' means ~~intentionally~~ misappropriation of resident property or in-
tentionally taking unfair advantage of an adult's physical or financial resources for another
individual's personal or financial advantage by the use of undue influence, coercion, ha-
rassment, duress, deception, false representation or false pretense by a caretaker or another
person.

~~(k)~~ (j) ``Medical care facility'' means a facility licensed under K.S.A. 65-425 et seq. and
amendments thereto but shall not include, for purposes of this act, a state psychiatric hospital
or state institution for the mentally retarded, including Larned state hospital, Osawatomie
state hospital, Rainbow mental health facility, ~~Topeka state hospital,~~ Kansas neurological
institute, and Parsons state hospital and training center ~~and Winfield state hospital and~~
~~training center~~.

(k) ``Fiduciary abuse'' means a situation in which any person who is the caretaker of,
or who stands in a position of trust to, a resident, takes, secretes, or appropriates the resi-
dent's money or property, to any use or purpose not in the due and lawful execution of such
person's trust.

(l) ``State psychiatric hospital'' means Larned state hospital, Osawatomie state hospital,
and Rainbow mental health facility ~~and Topeka state hospital~~.

(m) ``State institution for the mentally retarded'' means Kansas neurological institute,
and Parsons state hospital and training center ~~and Winfield state hospital and training center~~.

(n) ``Report'' means a description or accounting of an incident or incidents of abuse,
neglect or exploitation under this act and for the purposes of this act shall not include any
written assessment or findings.

(o) ``Law enforcement'' means the public office which is vested by law with the duty to
maintain public order, make arrests for crimes and investigate criminal acts, whether that
duty extends to all crimes or is limited to specific crimes.

No person shall be considered to be abused, neglected or exploited or in need of protec-
tive services for the sole reason that such person relies upon spiritual means through prayer
alone for treatment in accordance with the tenets and practices of a recognized church or
religious denomination in lieu of medical treatment.

Sec. 5. K.S.A. 39-1402 is hereby amended to read as follows: 39-1402. (a) Any person
who is licensed to practice any branch of the healing arts, a licensed psychologist, a licensed
master level psychologist, a chief administrative officer of a medical care facility, an adult
care home administrator or operator, a licensed social worker, a licensed professional nurse
or, a licensed practical nurse, a teacher, a bank trust officer, a guardian or a conservator
who has reasonable cause to believe that a resident is being or has been abused, neglected
or exploited, or is in a condition which is the result of such abuse, neglect or exploitation
or is in need of protective services, shall report immediately such information or cause a
report of such information to be made in any reasonable manner to the department of health
and environment with respect to residents defined under (a)(1) and ~~(a)(3)~~ (a)(2) of K.S.A.
39-1401 and amendments thereto and to the department of social and rehabilitation services
with respect to all other residents. Reports made to one department which are required by
this subsection to be made to the other department shall be referred by the department to
which the report is made to the appropriate department for that report, and any such report
shall constitute compliance with this subsection. Reports shall be made during the normal
working week days and hours of operation of such departments. Reports shall be made to
law enforcement agencies during the time the departments are not open for business. Law
enforcement agencies shall submit the report and appropriate information to the appropriate
department on the first working day that such department is open for business. A report
made pursuant to K.S.A. 65-4923 or 65-4924 and amendments thereto shall be deemed a
report under this section.

(b) The report made pursuant to subsection (a) shall contain the name and address of
the person making the report and of the caretaker caring for the resident, the name and
address of the involved resident, information regarding the nature and extent of the abuse,
neglect or exploitation, the name of the next of kin of the resident, if known, and any other
information which the person making the report believes might be helpful in an investigation
of the case and the protection of the resident.

(c) Any other person having reasonable cause to suspect or believe that a resident is
being or has been abused, neglected or exploited, or is in a condition which is the result of
such abuse, neglect or exploitation or is in need of protective services may report such
information to the department of health and environment with respect to residents defined
under (a)(1) and ~~(a)(3)~~ (a)(2) of K.S.A. 39-1401 and amendments thereto and to the de-
partment of social and rehabilitation services with respect to all other residents. Reports
made to one department which are to be made to the other department under this section
shall be referred by the department to which the report is made to the appropriate depart-
ment for that report.

(d) Notice of the requirements of this act and the department to which a report is to
be made under this act shall be posted in a conspicuous place in every adult care home,
~~adult family home~~ and medical care facility in this state.

(e) Any person required to report information or cause a report of information to be
made under subsection (a) who knowingly fails to make such report or cause such report to
be made shall be guilty of a class B misdemeanor.

Sec. 6. K.S.A. 1997 Supp. 39-1404 is hereby amended to read as follows: 39-1404. (a)
The ~~department of social and rehabilitation services or the~~ department of health and envi-
ronment or the department of social and rehabilitation services upon receiving a report that
a resident is being, or has been, abused, neglected or exploited, or is in a condition which
is the result of such abuse, neglect or exploitation or is in need of protective services~~, within~~
~~24 hours of receiving such report, shall initiate an investigation, including a personal visit~~
~~with the resident and, within two weeks of receiving such report, shall complete the inves-~~
~~tigation to determine if the resident is being or has been abused, neglected or exploited or~~
~~is in a condition which is a result of such abuse, neglect or exploitation. The investigation~~
~~shall include, but not be limited to, a visit to the named resident and consultation with those~~
~~individuals having knowledge of the facts of the particular case. Upon completion of the~~
~~investigation of each case, written findings shall be prepared which shall include a finding~~
~~of whether there is or has been abuse, neglect or exploitation, recommended action and a~~
~~determination of whether protective services are needed. If it appears that a crime has~~
~~occurred, the appropriate law enforcement agency shall be notified by the department in-~~
~~vestigating the report.~~

~~(b) The secretary of social and rehabilitation services shall maintain a register of the~~
~~reports received and investigated by the department of social and rehabilitation services,~~
~~the findings, evaluations and the actions recommended. The register shall be available for~~
~~inspection by personnel of the department of social and rehabilitation services. The secretary~~
~~of social and rehabilitation services shall forward a copy of any report of abuse, neglect or~~
~~exploitation of a resident investigated by the department of social and rehabilitation services~~
~~to the secretary of health and environment and, in the case of a report of abuse, neglect or~~
~~exploitation of a resident of an adult family home, to the secretary of aging.~~

~~(c) The report received by the department of social and rehabilitation services and the~~
~~written findings, evaluations and actions recommended shall not be deemed a public record~~
~~or be subject to the provisions of the open records act. Except as otherwise provided in this~~
~~section, or in K.S.A. 1997 Supp. 65-6205 and amendments thereto the name of the person~~
~~making the original report to the department of social and rehabilitation services or any~~
~~person mentioned in such report shall not be disclosed unless the person making the original~~
~~report specifically requests or agrees in writing to such disclosure or unless a judicial pro-~~
~~ceeding results therefrom. Except as otherwise provided in this section, no information~~
~~contained in the register shall be made available to the public in such a manner as to identify~~
~~individuals.~~

~~(d) The secretary of social and rehabilitation services shall forward any finding of abuse,~~
~~neglect or exploitation alleged to be committed by a provider of services licensed, registered~~
~~or otherwise authorized to provide services in this state to the appropriate state authority~~
~~which regulates such provider. The appropriate state regulatory authority may consider the~~
~~finding in any disciplinary action taken with respect to the provider of services under the~~
~~jurisdiction of such authority.~~

~~(e)~~ shall:

(1) When a criminal act has occurred or has appeared to have occurred, immediately
notify the appropriate law enforcement agency;

(2) make a personal visit with the involved resident:

(A) Within 24 hours when the information from the reporter indicates imminent danger
to the health or welfare of the involved resident;

(B) within three working days for all reports of suspected abuse, when the information
from the reporter indicates no imminent danger; or

(C) within five working days for all reports of neglect or exploitation when the infor-
mation from the reporter indicates no imminent danger.

(3) Complete, within 30 working days of receiving a report, a thorough investigation
and evaluation to determine the situation relative to the condition of the involved resident
and what action and services, if any, are required. The investigation shall include, but not
be limited to, consultation with those individuals having knowledge of the facts of the par-
ticular case; and

(4) prepare, upon a completion of the evaluation of each case, a written assessment which
shall include an analysis of whether there is or has been abuse, neglect or exploitation;
recommended action; a determination of whether protective services are needed; and any
follow up.

(b) The department which investigates the report shall inform the complainant, upon
request of the complainant, that an investigation has been made and, if the allegations of
abuse, neglect or exploitation have been substantiated, that corrective measures will be taken
if required.

(c) The department of health and environment may inform the chief administrative of-
ficer of a facility as defined by K.S.A. 39-923 and amendments thereto of confirmed findings
of resident abuse, neglect or exploitation.

Sec. 7. K.S.A. 39-1409 is hereby amended to read as follows: 39-1409. In performing
the duties set forth in this act, the secretary of social and rehabilitation services or the
secretary of health and environment may request the assistance of the staffs and resources
of all appropriate state departments, agencies and commissions and local health departments
and may utilize any other public or private agency, group or individual who is appropriate
and who may be available to assist such department in the investigation and determination
of whether a resident is being, or has been, abused, neglected or exploited or is in a condition
which is a result of such abuse, neglect or exploitation, except that any internal investigation
conducted by any caretaker under investigation shall be limited to the least serious category
of report as specified by the secretary of health and environment or the secretary of social
and rehabilitation services, as applicable.

Sec. 8. K.S.A. 39-1430 is hereby amended to read as follows: 39-1430. As used in this
act:

(a) ``Adult'' means an individual 18 years of age or older alleged to be unable to protect
their own interest and who is harmed or threatened with harm through action or inaction
by either another individual or through their own action or inaction~~. Such term shall not~~
~~include a resident as the term ``resident'' is defined under K.S.A. 39-1401 and amendments~~
~~thereto~~ when (1) such person is residing in such person's own home, the home of a family
member or the home of a friend, (2) such person resides in an adult family home as defined
in K.S.A. 39-1501 and amendments thereto, or (3) such person is receiving services through
a provider of community services and affiliates thereof operated or funded by the department
of social and rehabilitation services or the department on aging or a residential facility
licensed pursuant to K.S.A. 75-3307b and amendments thereto. Such term shall not include
persons to whom K.S.A. 39-1401 et seq. and amendments thereto apply.

(b) ``Abuse'' means ~~the intentional infliction of injury, unreasonable confinement, fi-~~
~~duciary abuse, intimidation, cruel punishment, omission or deprivation by a caretaker or~~
~~another person of goods or services which are necessary to avoid physical or mental harm~~
~~or illness.~~ any act or failure to act performed intentionally or recklessly that causes or is
likely to cause harm to an adult, including:

(1) Infliction of physical or mental injury;

(2) any sexual act with an adult when the adult does not consent or when the other
person knows or should know that the adult is incapable of resisting or declining consent to
the sexual act due to mental deficiency or disease or due to fear of retribution or hardship;

(3) unreasonable use of a physical restraint, isolation or medication that harms or is
likely to harm an adult;

(4) unreasonable use of a physical or chemical restraint, medication or isolation as pun-
ishment, for convenience, in conflict with a physician's orders or as a substitute for treatment,
except where such conduct or physical restraint is in furtherance of the health and safety of
the adult;

(5) a threat or menacing conduct directed toward an adult that results or might reason-
ably be expected to result in fear or emotional or mental distress to an adult;

(6) fiduciary abuse; or

(7) omission or deprivation by a caretaker or another person of goods or services which
are necessary to avoid physical or mental harm or illness.

(c) ``Neglect'' means the failure or omission by one's self, caretaker or another person
to provide goods or services which are reasonably necessary to ensure safety and well-being
and to avoid physical or mental harm or illness.

(d) ``Exploitation'' means misappropriation of an adult's property or intentionally taking
unfair advantage of an adult's physical or financial resources for another individual's personal
or financial advantage by the use of undue influence, coercion, harassment, duress, decep-
tion, false representation or false pretense by a caretaker or another person.

(e) ``Fiduciary abuse'' means a situation in which any person who is the caretaker of, or
who stands in a position of trust to, an adult, takes, secretes, or appropriates their money
or property, to any use or purpose not in the due and lawful execution of such person's
trust.

(f) ``In need of protective services'' means that an adult is unable to provide for or obtain
services which are necessary to maintain physical or mental health or both.

(g) ``Services which are necessary to maintain physical or mental health or both'' include,
but are not limited to, the provision of medical care for physical and mental health needs,
the relocation of an adult to a facility or institution able to offer such care, assistance in
personal hygiene, food, clothing, adequately heated and ventilated shelter, protection from
health and safety hazards, protection from maltreatment the result of which includes, but
is not limited to, malnutrition, deprivation of necessities or physical punishment and trans-
portation necessary to secure any of the above stated needs, except that this term shall not
include taking such person into custody without consent except as provided in this act.

(h) ``Protective services'' means services provided by the state or other governmental
agency or by private organizations or individuals which are necessary to prevent abuse,
neglect or exploitation. Such protective services shall include, but shall not be limited to,
evaluation of the need for services, assistance in obtaining appropriate social services, and
assistance in securing medical and legal services.

(i) ``Caretaker'' means a person who has assumed the responsibility for an adult's care
or financial management or both.

(j) ``Secretary'' means the secretary of social and rehabilitation services.

(k) ``Report'' means a ~~report of abuse, neglect or exploitation under this act~~ description
or accounting of an incident or incidents of abuse, neglect or exploitation under this act and
for the purposes of this act shall not include any written assessment or findings.

(l) ``Law enforcement'' means the public office which is vested by law with the duty to
maintain public order, make arrests for crimes, investigate criminal acts and file criminal
charges, whether that duty extends to all crimes or is limited to specific crimes.

(m) ``Involved adult'' means the adult who is the subject of a report of abuse, neglect
or exploitation under this act.

No person shall be considered to be abused, neglected or exploited or in need of protec-
tive services for the sole reason that such person relies upon spiritual means through prayer
alone for treatment in accordance with the tenets and practices of a recognized church or
religious denomination in lieu of medical treatment.

Sec. 9. K.S.A. 39-1431 is hereby amended to read as follows: 39-1431. (a) Any person
who is licensed to practice any branch of the healing arts, a licensed psychologist, a licensed
master level psychologist, the chief administrative officer of a medical care facility, a teacher,
a licensed social worker, a licensed professional nurse, a licensed practical nurse, a licensed
dentist, a law enforcement officer, a case manager, a guardian or conservator, a bank trust
officer, a rehabilitation counselor, a holder of a power of attorney, an owner or operator of
a residential care facility, an independent living counselor and the chief administrative of-
ficer of a licensed home health agency, the chief administrative officer of an adult family
home and the chief administrative officer of a provider of community services and affiliates
thereof operated or funded by the department of social and rehabilitation services or licensed
under K.S.A. 75-3307b and amendments thereto who has reasonable cause to believe that
an adult is being or has been abused, neglected or exploited or is in need of protective
services shall report, ~~within six hours~~ immediately from receipt of the information, such
information or cause a report of such information to be made in any reasonable manner.
An employee of a domestic violence center shall not be required to report information or
cause a report of information to be made under this subsection. Other state agencies re-
ceiving reports that are to be referred to the department of social and rehabilitation services,
shall submit the report to the department within six hours, during normal work days, of
receiving the information. Reports shall be made to the department of social and rehabili-
tation services during the normal working week days and hours of operation. Reports shall
be made to law enforcement agencies during the time social and rehabilitation services are
not in operation. Law enforcement shall submit the report and appropriate information to
the department of social and rehabilitation services on the first working day that social and
rehabilitation services is in operation.

(b) The report made pursuant to subsection (a) shall contain the name and address of
the person making the report and of the caretaker caring for the involved adult, the name
and address of the involved adult, information regarding the nature and extent of the abuse,
neglect or exploitation, the name of the next of kin of the involved adult, if known, and any
other information which the person making the report believes might be helpful in the
investigation of the case and the protection of the involved adult.

(c) Any other person having reasonable cause to suspect or believe that an adult is being
or has been abused, neglected or exploited or is in need of protective services may report
such information to the department of social and rehabilitation services. Reports shall be
made to law enforcement agencies during the time social and rehabilitation services are not
in operation.

(d) A person making a report under subsection (a) shall not be required to make a
report under K.S.A. 39-1401 to 39-1410, inclusive, and amendments thereto. ~~A person~~
~~making a report under K.S.A. 39-1401 to 39-1410, inclusive, and amendments thereto, shall~~
~~not be required to make a report under this act.~~

(e) Any person required to report information or cause a report of information to be
made under subsection (a) who knowingly fails to make such report or cause such report
not to be made shall be guilty of a class B misdemeanor.

(f) Notice of the requirements of this act and the department to which a report is to be
made under this act shall be posted in a conspicuous place in every adult family home as
defined in K.S.A. 39-1501 and amendments thereto and every provider of community serv-
ices and affiliates thereof operated or funded by the department of social and rehabilitation
services or other facility licensed under K.S.A. 75-3307b and amendments thereto.

Sec. 10. K.S.A. 39-1433 is hereby amended to read as follows: 39-1433. (a) The de-
partment of social and rehabilitation services upon receiving a report that an adult is being,
or has been abused, neglected, or exploited or is in need of protective services, shall:

(1) When a criminal act has occurred or has appeared to have occurred, immediately
notify the appropriate law enforcement agency;

~~(1)~~ (2) make a personal visit with the involved adult:

(A) Within 24 hours when the information from the reporter indicates imminent danger
to the health or welfare of the involved adult;

(B) within three working days for all reports of suspected abuse, when the information
from the reporter indicates no imminent danger;

(C) within five working days for all reports of neglect or exploitation when the infor-
mation from the reporter indicates no imminent danger.

~~(2)~~ (3) Complete, within ~~two weeks~~ 30 working days of receiving a report, a thorough
investigation and evaluation to determine the situation relative to the condition of the in-
volved adult and what action and services, if any, are required. The evaluation shall include,
but not be limited to, consultation with those individuals having knowledge of the facts of
the particular case. ~~When a criminal act has appeared to have occurred, law enforcement~~
~~shall be notified immediately and~~ If the alleged perpetrator is licensed, registered or oth-
erwise regulated by a state agency, such state agency also shall be notified immediately.

~~(3)~~ (4) Prepare, upon completion of the ~~evaluation~~ investigation of each case, a written
assessment which shall include an analysis of whether there is or has been abuse, neglect
or exploitation, recommended action, a determination of whether protective services are
needed, and any follow-up.

(b) The secretary of social and rehabilitation services shall forward any finding of abuse,
neglect or exploitation alleged to have been committed by a provider of services licensed,
registered or otherwise authorized to provide services in this state to the appropriate state
authority which regulates such provider. The appropriate state regulatory authority may
consider the finding in any disciplinary action taken with respect to the provider of services
under the jurisdiction of such authority.

(c) The department of social and rehabilitation services shall inform the complainant,
upon request of the complainant, that an investigation has been made and if the allegations
of abuse, neglect or exploitation have been substantiated, that corrective measures will be
taken.

(d) The department of social and rehabilitation services may inform the chief adminis-
trative officer of community facilities licensed pursuant to K.S.A. 75-3307b and amendments
thereto of confirmed findings of resident abuse, neglect or exploitation.

Sec. 11. K.S.A. 39-1435 is hereby amended to read as follows: 39-1435. In performing
the duties set forth in this act, the secretary of social and rehabilitation services may request
the assistance of all state departments, agencies and commissions and may utilize any other
public or private agencies, groups or individuals who are appropriate and who may be
available. Law enforcement shall be contacted to assist the department of social and reha-
bilitation services when the information received on the report indicates that an adult,
residing in such adult's own home or the home of another individual, an adult family home,
a community development disabilities facility or residential facility is in a life threatening
situation.

Sec. 12. K.S.A. 39-1440 is hereby amended to read as follows: 39-1440. Subsequent to
the authorization for the provision of necessary protective services, the secretary shall initiate
a review of each case within 45 60 days to determine where continuation of, or modification
in, the services provided is warranted. A decision to continue the provision of such services
shall comply with the consent provisions of this act. Reevaluations of the need for protective
services shall be made not less than every six months thereafter.

Sec. 13. K.S.A. 59-3036 is hereby amended to read as follows: 59-3036. (a) (1) If during
the pendency of a proceeding initiated under K.S.A. 59-3009 and amendments thereto, it
appears that there is an imminent danger that the physical health or safety of the proposed
ward will be seriously impaired or financial resources will be depleted unless immediate
action is taken, the proposed ward, or any adult interested in the welfare of the proposed
ward, may petition the court in which the proceeding is pending for the emergency ap-
pointment of a guardian or conservator.

(2) The petition shall state:

(A) The names and addresses of the individuals and entities entitled to notice; and

(B) the relief requested and the facts and reasons supporting that request.

(3) A hearing shall be held no more than 48 hours after a petition for an emergency
appointment has been filed. Notice shall be given in the manner directed by the court.

(4) If the court determines that there is an imminent danger that the physical health or
safety of the proposed ward will be seriously impaired or financial resources will be depleted
unless immediate action is taken, the court shall appoint a guardian or conservator in the
manner prescribed in K.S.A. 59-3014 and amendments thereto. The court shall assign to
an emergency appointee only those duties and powers necessary to protect against the
imminent danger shown.

(5) The emergency appointment shall remain in effect until the conclusion of the hear-
ing conducted under K.S.A. 59-3013 and amendments thereto.

(b) If at any time the court has probable cause to believe that a guardian or conservator
is not effectively performing such person's duties and powers, and that there is an imminent
danger that the physical health or safety of the ward will be seriously impaired or financial
resources will be depleted unless immediate action is taken, the court shall:

(1) Suspend and temporarily replace the guardian with a guardian or conservator meet-
ing the qualifications set forth in K.S.A. 59-3014 and amendments thereto;

(2) reassign the duties and powers of the suspended guardian or conservator to the
emergency appointee; and

(3) direct the temporary appointee to file a petition under K.S.A. 59-3029 and amend-
ments thereto within five days if such petition is not already pending, and submit such
reports as may be necessary.

(c) The court may designate another eligible person selected in accordance with K.S.A.
59-3014 and amendments thereto to assume the duties and powers assigned to the guardian
or conservator upon the resignation, disability, temporary absence or death of the guardian
or conservator. The individual so designated, other than an individual designated because
of the temporary absence of a guardian or conservator, shall submit a report pursuant to
K.S.A. 59-3029 and amendments thereto within 10 days after an individual appointed on a
standby basis assumes the duties of a guardian or conservator. A guardian or conservator
serving on a standby basis may exercise all of the duties and powers assigned to the pred-
ecessor as a guardian or conservator until the conclusion of the proceedings under K.S.A.
59-3029 and amendments thereto or, in case of the temporary absence of the predecessor
guardian or conservator, until the predecessor guardian or conservator returns, unless oth-
erwise ordered by the court.

(d) This section shall be part of and supplemental to the act for obtaining a guardian or
conservator, or both.

New Sec. 14. (a) Unlawful interference with an emergency medical services attendant
is knowingly and intentionally interfering with, molesting or assaulting, as defined in K.S.A.
21-3408 and amendments thereto, any attendant while engaged in the performance of such
attendant's duties, or knowingly and intentionally obstructing, interfering with or impeding
the efforts of any attendant to reach the location of an emergency.

(b) As used in this section, ``attendant'' shall have the meaning ascribed to such term
under K.S.A. 65-6112 and amendments thereto.

(c) Unlawful interference with an emergency medical services attendant is a class B
person misdemeanor.

(d) This section shall be part of and supplemental to the Kansas criminal code.

Sec. 15. K.S.A. 39-1401, 39-1402, 39-1409, 39-1430, 39-1431, 39-1433, 39-1435, 39-
1440 and 59-3036 and K.S.A. 1997 Supp. 39-923, 39-1404, 65-3501 and 65-3503 are hereby
repealed.'';

And by renumbering the remaining section accordingly;

Also on page 7, in line 23, by striking ``Kansas register'' and inserting ``statute book'';

On page 1, in the title, in line 12, by striking ``department of health and environment;''
and inserting in lieu thereof ``the protection of certain persons;''; in line 14, by striking
``sponsors''; also in line 14, before ``amending'' by inserting: ``nursing facilities; reporting of
abuse, neglect or exploitation of certain persons; unlawful interference with certain emer-
gency personnel; appointment of guardian or conservator;''; also in line 14, by striking all
after ``amending''; in line 15, by striking all before ``and'' where it appears for the last time
and inserting: ``K.S.A. 39-1401, 39-1402, 39-1409, 39-1430, 39-1431, 39-1433, 39-1435,
39-1440 and 59-3036 and K.S.A. 1997 Supp. 39-923, 39-1404, 65-3501 and 65-3503'';

And your committee on conference recommends the adoption of this report.

Sandy Praeger

Janice Hardenburger

Chris Steineger

Conferees on part of Senate

Carlos Mayans

James Morrison

Jerry Henry

Conferees on part of House

Senator Praeger moved the Senate adopt the Conference Committee report on HB 2185.

On roll call, the vote was: Yeas 40, nays 0, present and passing 0; absent or not voting 0.

Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Downey,
Emert, Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger, Harrington, Hensley, Huel-
skamp, Jones, Jordan, Karr, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Prae-
ger, Pugh, Ranson, Salisbury, Salmans, Schraad, Steffes, Steineger, Tyson, Umbarger,
Vidricksen.

The Conference Committee report was adopted.

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 2510.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2510, 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 as Amended by Senate on Final Action,
as follows:

On page 1, following line 21, by inserting:

``Section 1. K.S.A. 1997 Supp. 74-8802 is hereby amended to read as follows: 74-8802.
As used in ~~this~~ the Kansas parimutuel racing act unless the context otherwise requires:

(a) ``Breakage'' means the odd cents by which the amount payable on each dollar wa-
gered exceeds:

(1) A multiple of $.10, for parimutuel pools from races conducted in this state; and

(2) a multiple of such other number of cents as provided by law of the host jurisdiction,
for interstate combined wagering pools.

(b) ``Commission'' means the Kansas racing and gaming commission created by this act.

(c) ``Concessionaire licensee'' means a person, partnership, corporation or association
licensed by the commission to utilize a space or privilege within a racetrack facility to sell
goods or services.

(d) ``Contract'' means an agreement, written or oral, between two or more persons,
partnerships, corporations or associations, or any combination thereof, which creates an
obligation between the parties.

(e) ``Crossover employment'' means a situation in which an occupational licensee is con-
currently employed at the same racing facility by an organization licensee and a facility
owner licensee or facility manager licensee.

(f) ``Dual racetrack facility'' means a racetrack facility for the racing of both horses and
greyhounds or two immediately adjacent racetrack facilities, owned by the same licensee,
one for racing horses and one for racing greyhounds.

~~(f)~~ (g) ``Executive director'' means the executive director of the commission.

~~(g)~~ (h) ``Facility manager licensee'' means a person, partnership, corporation or asso-
ciation licensed by the commission and having a contract with an organization licensee to
manage a racetrack facility.

~~(h)~~ (i) ``Facility owner licensee'' means a person, partnership, corporation or association,
or the state of Kansas or any political subdivision thereof, licensed by the commission to
construct or own a racetrack facility but does not mean an organization licensee which owns
the racetrack facility in which it conducts horse or greyhound racing.

~~(i)~~ (j) ``Fair association'' means an association organized pursuant to K.S.A. 2-125 et seq.
and amendments thereto or a nonprofit association determined by the commission to be
otherwise organized to conduct fair activities pursuant to findings of fact entered by the
commission in a license order.

~~(j)~~ (k) ``Financial interest'' means an interest that could result directly or indirectly in
receiving a pecuniary gain or sustaining a pecuniary loss as a result of ownership or interest
in a business entity or activity or as a result of a salary, gratuity or other compensation or
remuneration from any person.

~~(k)~~ (l) ``Greyhound'' means any greyhound breed of dog properly registered with the
national greyhound association of Abilene, Kansas.

~~(l)~~ (m) ``Horsemen's association'' means any association or corporation:

(1) All officers, directors, members and shareholders of which are licensed owners of
horses or licensed trainers of horses, or both;

(2) which is applying for or has been issued a facility owner license authorizing own-
ership of Eureka Downs, Anthony Downs or a racetrack facility on or adjacent to premises
used by a fair association to conduct fair activities; and

(3) none of the officers, directors, members or shareholders of which holds another
facility owner license or is an officer, director, member or shareholder of another facility
owner licensee.

~~(m)~~ (n) ``Horsemen's nonprofit organization'' means any nonprofit organization:

(1) All officers, directors, members or shareholders of which are licensed owners of
horses or licensed trainers of horses, or both; and

(2) which is applying for or has been issued an organization license authorizing the
conduct of horse races at Eureka Downs, Anthony Downs or a racetrack facility on or
adjacent to premises used by a fair association to conduct fair activities.

~~(n)~~ (o) ``Host facility'' means the racetrack at which the race is run or, if the race is run
in a jurisdiction which is not participating in the interstate combined wagering pool, the
racetrack or other facility which is designated as the host facility.

~~(o)~~ (p) ``Host jurisdiction'' means the jurisdiction where the host facility is located.

~~(p)~~ (q) ``Interstate combined wagering pool'' means a parimutuel pool established in
one jurisdiction which is combined with comparable parimutuel pools from one or more
racing jurisdictions for the purpose of establishing the amount of money returned on a
successful wager in the participating jurisdictions.

~~(q)~~ (r) ``Intertrack wagering'' means wagering on a simulcast race at a licensed racetrack
facility or at a facility which is licensed in its racing jurisdiction to conduct live races.

~~(r)~~ (s) ``Intrastate combined wagering pool'' means a parimutuel pool which is combined
with comparable parimutuel pools from one or more racetrack facilities for the purpose of
establishing the amount of money returned on a successful wager at the participating race-
track facilities.

~~(s)~~ (t) ``Kansas-whelped greyhound'' means a greyhound whelped and raised in Kansas
for the first six months of its life.

~~(t)~~ (u) ``Minus pool'' means a parimutuel pool in which, after deducting the takeout, not
enough money remains in the pool to pay the legally prescribed minimum return to those
placing winning wagers, and in which the organization licensee would be required to pay
the remaining amount due.

~~(u)~~ (v) ``Nonprofit organization'' means:

(1) A corporation which is incorporated in Kansas as a not-for-profit corporation pur-
suant to the Kansas general corporation code and the net earnings of which do not inure to
the benefit of any shareholder, individual member or person; or

(2) a fair association.

~~(v)~~ (w) ``Occupation licensee'' means a person licensed by the commission to perform
an occupation or provide services which the commission has identified as requiring a license
pursuant to this act.

~~(w)~~ (x) ``Off-track wagering'' means wagering on a simulcast race at a facility which is
not licensed in its jurisdiction to conduct live races.

~~(x)~~ (y) ``Organization licensee'' means a nonprofit organization licensed by the commis-
sion to conduct races pursuant to this act and, if the license so provides, to construct or own
a racetrack facility.

~~(y)~~ (z) ``Parimutuel pool'' means the total money wagered by individuals on one or more
horses or greyhounds in a particular horse or greyhound race to win, place or show, or
combinations thereof, as established by the commission, and, except in the case of an in-
terstate or intrastate combined wagering pool, held by the organization licensee pursuant
to the parimutuel system of wagering. There is a separate parimutuel pool for win, for place,
for show and for each of the other forms of betting provided for by the rules and regulations
of the commission.

~~(z)~~ (aa) ``Parimutuel wagering'' means a form of wagering on the outcome of horse and
greyhound races in which those who wager purchase tickets of various denominations on
one or more horses or greyhounds and all wagers for each race are pooled and the winning
ticket holders are paid prizes from such pool in amounts proportional to the total receipts
in the pool.

~~(aa)~~ (bb) ``Race meeting'' means ~~the entire period~~ one or more periods of ~~time~~ racing
days during a calendar year designated by the commission for which an organization licensee
has been approved by the commission to hold live or simulcast horse or greyhound races at
which parimutuel wagering is conducted, including such additional time as designated by
the commission for the conduct of official business before and after the races.

~~(bb)~~ (cc) ``Racetrack facility'' means a racetrack within Kansas used for the racing of
horses or greyhounds, or both, including the track surface, grandstands, clubhouse, all an-
imal housing and handling areas, other areas in which a person may enter only upon payment
of an admission fee or upon presentation of authorized credentials and such additional areas
as designated by the commission.

~~(cc)~~ (dd) ``Racing jurisdiction'' or ``jurisdiction'' means a governmental authority which
is responsible for the regulation of live or simulcast racing in its jurisdiction.

~~(dd)~~ (ee) ``Racing or wagering equipment or services licensee'' means any person, part-
nership, corporation or association licensed by the commission to provide integral racing or
wagering equipment or services, as designated by the commission, to an organization li-
censee.

~~(ee)~~ (ff) ``Recognized greyhound owners' group'' means the duly recognized group
elected in accordance with rules and regulations of the commission by a majority of the
Kansas licensed greyhound owners at the racetrack facility voting in the election. The com-
mission may designate an organization such as the national greyhound association of Abilene,
Kansas, to conduct the election.

~~(ff)~~ (gg) ``Recognized horsemen's group'' means the duly recognized group, representing
the breeds of horses running at a racetrack facility, elected in accordance with rules and
regulations of the commission by a majority of the licensed owners and trainers at the
racetrack facility voting in the election. If the licensee does not have a recognized horsemen's
group, the commission shall designate as the recognized horsemen's group one that serves
another organization licensee, but not one that serves a fair association organization licensee.

~~(gg)~~ (hh) ``Simulcast'' means a live audio-visual broadcast of an actual horse or grey-
hound race at the time it is run.

~~(hh)~~ (ii) ``Takeout'' means the total amount of money withheld from each parimutuel
pool for the payment of purses, taxes and the share to be kept by the organization licensee.
Takeout does not include the breakage. The balance of each pool less the breakage is
distributed to the holders of winning parimutuel tickets.'';

Also on page 1, in line 22, by striking ``Section 1.'' and inserting ``Sec. 2.'';

By renumbering sections accordingly;

On page 7, in line 3, by striking ``steward or''; in line 4, by striking ``steward or''; in line
5, by striking ``steward's or''; in line 6, by striking all after ``is''; in line 7, by striking all before
``a'' and inserting ``a licensed owner, owner-trainer or trainer of a greyhound that races at'';

On page 13, in line 24, by striking `` and housing `` and inserting ``and housing'';

On page 21, in line 16, by striking ``(k)'' and inserting ``(j)''; in line 22, by striking all after
the period; by striking all in lines 23 and 24; in line 25, by striking all before ``Of''; in line
26, by striking all after ``taxes''; in line 27, by striking all before ``shall'' and inserting ``, an
amount equal to a percentage, to be determined by the commission, of the gross sum
wagered on simulcast races''; in line 29, by striking ``purses for''; in line 32, by striking ``purses
for''; in line 35, by striking ``purses'' and inserting ``horse races and greyhound races''; in
line 39, by striking ``purses'' and inserting ``horse races and greyhound races''; in line 42,
following the period, by inserting ``That portion of simulcast purse money determined to be
used for horse purses shall be apportioned by the commission to the various horse race
meetings held in any calendar year based upon the number of live horse race dates com-
prising such horse race meetings in the preceding calendar year.''; by striking all in line 43;

On page 22, by striking all in lines 1 through 5;

By relettering subsections accordingly;

Also on page 22, in line 6, by striking ``(k)'' and inserting ``(j)'';

On page 24, by striking all in lines 13 through 30 and inserting:

``Sec. 8. K.S.A. 1997 Supp. 74-9804 is hereby amended to read as follows: 74-9804. (a)
(1) The governor shall appoint, subject to confirmation by the senate as provided by K.S.A.
75-4315b, and amendments thereto, an executive director of the state gaming agency, to
serve at the pleasure of the governor. Before appointing any person as executive director,
the governor shall cause the Kansas bureau of investigation to conduct a criminal history
record check and background investigation of the person.

(2) The executive director shall: (A) Be in the unclassified service under the Kansas civil
service act; (B) devote full time to the executive director's assigned duties; (C) be a citizen
of the United States and an actual resident of Kansas during employment as executive
director; (D) not have been convicted of a felony under the laws of any state or of the United
States prior to or during employment; and (E) have familiarity with gaming industries suf-
ficient to fulfill the duties of the office of executive director.

(3) The executive director shall: (A) Determine, subject to the approval of the Kansas
racing and gaming commission, the number and qualifications of employees necessary to
implement and enforce the provisions of tribal-state gaming compacts and the provisions of
the tribal gaming oversight act; (B) employ persons for those positions; and (C) perform
such other duties as required by tribal-state gaming compacts.

(b) (1) The executive director may appoint a director of enforcement and compliance
to serve at the pleasure of the executive director. Before appointing any person as director
of enforcement and compliance, the executive director shall cause the Kansas bureau of
investigation to conduct a criminal history record check and background investigation of the
person.

(2) The director of enforcement and compliance shall: (A) Be in the unclassified service
under the Kansas civil service act; (B) devote full time to the director's assigned duties; (C)
receive such compensation as determined by the executive director, subject to the limitations
of appropriations therefor; (D) be a citizen of the United States and an actual resident of
Kansas during employment as director of enforcement and compliance; (E) not have been
convicted of a felony under the laws of any state or of the United States prior to and during
employment as director of compliance; and (F) ~~if vested with law enforcement powers,~~ have
been a professional law enforcement officer with a minimum of five years' experience in
the field of law enforcement and at least a bachelor's degree in law enforcement adminis-
tration, law, criminology or a related science or, in lieu thereof, a minimum of 10 years'
experience in the field of law enforcement.

(3) The director of enforcement and compliance shall: (A) Be vested with law enforce-
ment authority;

(B) conduct investigations relating to compliance with the provisions of tribal-state gam-
ing compacts and the provisions of the tribal gaming oversight act;

~~(B)~~ (C) recommend proper compliance measures to tribal gaming commissions;

~~(C)~~ (D) train and supervise such personnel as employed by the executive director to
assist with such duties; and

~~(D)~~ (E) perform such other duties as directed by the executive director.

(c) (1) The executive director may appoint ~~compliance inspectors~~ enforcement agents.
Before appointing any person as a ~~compliance inspector~~ enforcement agent, the executive
director shall cause the Kansas bureau of investigation to conduct a criminal history record
check and background investigation of the person.

(2) Each ~~compliance inspector~~ enforcement agent shall: (A) Be vested with law enforce-
ment authority;

(B) be in the classified service under the Kansas civil service act;

~~(B)~~ (C) not have been convicted of a felony under the laws of any state or of the United
States prior to or during employment as ~~compliance inspector~~ enforcement agent; and ~~(C)~~
~~if vested with law enforcement powers,~~

(D) be a professional law enforcement officer with a minimum of two years' experience
in the field of law enforcement or, in lieu thereof, a bachelor's degree from an accredited
university or college.

(3) ~~Compliance inspectors~~ Enforcement agents shall: (A) Conduct investigations relating
to compliance with the provisions of tribal-state gaming compacts or the provisions of the
tribal gaming oversight act; and (B) perform such other duties as directed by the executive
director or the director of enforcement and compliance.

Sec. 9. K.S.A. 1997 Supp. 74-9806 is hereby amended to read as follows: 74-9806. (a)
~~Employees of the state gaming agency designated by the executive director~~ The director of
enforcement and compliance and all enforcement agents are hereby vested with the power
and authority of law enforcement officers in the execution of the duties imposed upon the
state gaming agency by the provisions of the tribal gaming oversight act and tribal-state
gaming compacts.

~~(b) Employees designated pursuant to subsection (a)~~ and shall have the authority to:

(1) Make arrests, conduct searches and seizures and carry firearms while investigating
violations of this act and during routine conduct of their duties as determined by the ex-
ecutive director;

(2) make arrests, conduct searches and seizures and generally enforce all criminal laws
of the state as violations of such laws are encountered by such employees during the routine
performance of their duties; and

(3) issue notices to appear pursuant to K.S.A. 22-2408, and amendments thereto.

~~(c)~~ (b) No employee of the state gaming agency shall be certified to carry firearms under
the provisions of this section without having first successfully completed the firearms training
course or courses prescribed for law enforcement officers under subsection (a) of K.S.A.
74-5604a, and amendments thereto. The executive director may adopt rules and regulations
prescribing other training required for such employees.

~~(d)~~ (c) It shall be the duty of the Kansas bureau of investigation to conduct, or assist
~~compliance~~ enforcement personnel of the state gaming agency and other law enforcement
agencies in conducting, investigations of violations of tribal-state gaming compacts, criminal
violations of the laws of this state at tribal gaming facilities, criminal violations of the tribal
gaming oversight act and other criminal activities related to tribal gaming. Such duty may
be performed independently of or in conjunction with employees of the state gaming agency
designated pursuant to this section or tribal gaming commission inspectors. Employees of
the state gaming agency shall report immediately any criminal violations of the tribal gaming
oversight act and any criminal activities or suspected criminal activities at tribal gaming
facilities to the Kansas bureau of investigation. Employees of the Kansas bureau of inves-
tigation shall report any violations or suspected violations of the tribal gaming oversight act
to the executive director or to employees of the state gaming agency designated pursuant
to this section.

Sec. 10. K.S.A. 74-8809 and 74-8811 and K.S.A. 1997 Supp. 74-8802, 74-8802, as
amended by section 1 of 1998 House Bill No. 3028, 74-8802a, 74-8802b, 74-8810, 74-8813a,
74-8816, 74-8831, 74-8836, 74-9804 and 74-9806 are hereby repealed.'';

By renumbering sections accordingly;

In the title, by striking all in lines 16 through 19 and inserting:

``AN ACT concerning racing and gaming; concerning the regulation thereof; concerning
the powers and duties of certain officers and employees; amending K.S.A. 74-8809 and
74-8811 and K.S.A. 1997 Supp. 74-8802, 74-8810, 74-8816, 74-8831, 74-8836, 74-9804 and
74-9806 and repealing the existing sections; also repealing K.S.A. 1997 Supp. 74-8802, as
amended by section 1 of 1998 House Bill No. 3028, 74-8802a, 74-8802b and 74-8813a.'';

And your committee on conference recommends the adoption of this report.

Lana Oleen

Ben Vidricksen

Sherman Jones

Conferees on part of Senate

Garry G. Boston

Ralph M. Tanner

Ruby Gilbert

Conferees on part of House

Senator Oleen moved the Senate adopt the Conference Committee report on HB 2510.

On roll call, the vote was: Yeas 40, nays 0, present and passing 0; absent or not voting 0.

Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Downey,
Emert, Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger, Harrington, Hensley, Huel-
skamp, Jones, Jordan, Karr, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Prae-
ger, Pugh, Ranson, Salisbury, Salmans, Schraad, Steffes, Steineger, Tyson, Umbarger,
Vidricksen.

The Conference Committee report was adopted.

FINAL ACTION OF BILLS AND CONCURRENT RESOLUTIONS

On motion of Senator Emert an emergency was declared by a 2
3/ constitutional majority,
and SB 501 was advanced to Final Action, subject to amendment, debate and roll call.

SB 501, An act concerning salaries and compensation for state officers and employees;
amending K.S.A. 75-3101, 75-3103, 75-3104, 75-3108, 75-3110 and 75-3111a and K.S.A.
1997 Supp. 40-102, 46-137a and 46-137b and repealing the existing sections, was considered
on final action.

The bill was amended by adoption of the committee amendments.

On roll call, the vote was: Yeas 38, nays 2, present and passing 0; absent or not voting 0.

Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Downey,
Emert, Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger, Harrington, Hensley, Jones,
Jordan, Karr, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Praeger, Pugh, Ran-
son, Salisbury, Salmans, Schraad, Steffes, Steineger, Umbarger, Vidricksen.

Nays: Huelskamp, Tyson.

The bill passed, as amended.

May 3, 1998

MESSAGE FROM THE HOUSE

Announcing the House adopts the conference committee report on HB 2584.

The House adopts the conference committee report on HB 2726.

The House adopts the conference committee report on SB 262.

The House concurs in Senate amendments to HB 2312.

The House concurs in Senate amendments to HB 2868 and requests the Senate to return
the bill.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 262, 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 1, by striking all in lines 17 through 43;

By striking all on pages 2 through 8;

On page 9, by striking all in lines 1 through 36 and inserting the following new section:

``Section 1. K.S.A. 20-355 is hereby amended to read as follows: 20-355. (a) On or
before April 15 of every even-numbered year, the supreme court shall examine the need
for more or less divisions or district magistrate judge positions of the district court in each
judicial district which has not approved the proposition of nonpartisan selection of ~~district~~
judges of the district court, as provided in K.S.A. 20-2901, and amendments thereto~~, and~~,
except that on or before May 15, 1998, the supreme court shall examine the need for more
or less divisions or district magistrate judge positions of the district court in each judicial
district which has not approved the proposition of nonpartisan selection of judges of the
district court. On or before May 15 of each year, the supreme court shall examine the need
for more or less divisions or positions of the district court in judicial districts which have
approved such proposition. Whenever the supreme court shall determine that in order to
effectively expedite the business of the district court in any judicial district in this state, the
need exists for an additional ~~district~~ judge of the district court and an additional division of
or position in such court, the supreme court shall so certify to the secretary of state, and
where the need for such additional ~~district~~ judge of the district court and division or position
is in a judicial district in which such proposition of nonpartisan selection of ~~district court~~
judges of the district court has been approved, such certification also shall be made to the
chairperson of the district judicial nominating commission of such judicial district. Any
additional division or position so certified shall be designated as the next numbered division
or position of such court.

(b) Upon certification of an additional ~~district~~ judge of the district court and an addi-
tional division or position of the district court in any judicial district which has not approved
the proposition of nonpartisan selection of ~~district~~ judges of the district court, the first ~~district~~
judge of the district court of such new division or position shall be elected at the general
election held in November of the year in which the division or position is determined to be
necessary and such judge shall take office on the second Monday in January of the following
year. No judge of any such new division shall be appointed pending the first election to fill
such office.

(c) Upon certification of an additional ~~district~~ judge of the district court and an addi-
tional division or position of the district court in any judicial district which has approved the
proposition of nonpartisan selection of ~~district~~ judges of the district court, the additional
division or position shall be created on July 15 of the year in which such certification is
made, and the additional district judge shall be selected and take office in the manner
prescribed by subsection (b) of K.S.A. 20-2913, and amendments thereto. The additional
position shall be created on July 1 of the year in which the position is approved, and the
additional district magistrate judge shall be selected and take office in the manner prescribed
by K.S.A. 20-2914 and amendments thereto.

(d) The supreme court shall determine the county or judicial district in which the newly
created division or position shall be placed.

(e) Any additional district judge or district magistrate judge position created by this
section shall be considered a position created by the supreme court and not a civil appoint-
ment to a state office pursuant to K.S.A. 46-234, and amendments thereto.

Sec. 2. K.S.A. 25-205 is hereby amended to read as follows: 25-205. (a) Except as oth-
erwise provided in ~~subsection (h)~~ this section, the names of candidates for national, state,
county and township offices shall be printed upon the official primary ballot when each shall
have qualified to become a candidate by one of the following methods and none other: (1)
They shall have had filed in their behalf, not later than 12:00 noon, June 10, prior to such
primary election, or if such date falls on Saturday, Sunday or a holiday, then before 12:00
noon of the next following day that is not a Saturday, Sunday or a holiday, nomination
petitions, as provided for in this act, except that in 1998, candidates for judge or district
magistrate judge of the district court for positions created in 1998 in those judicial districts
that have not approved the proposition of nonpartisan selection of judges of the district court
shall have filed in their behalf, not later than 12:00 noon, July 1, 1998, nomination petitions,
as provided for in this act; or (2) they shall have filed not later than the time for filing
nomination petitions, as above provided, with the proper officer a declaration of intention
to become a candidate, accompanied by the fee required by law. Such declaration shall be
prescribed by the secretary of state.

(b) Nomination petitions shall be in substantially the following form:

I, the undersigned, an elector of the county of ________, and state of Kansas, and
a duly registered voter, and a member of ________ party, hereby nominate

,
who resides in the township of ________ (or at number ________ on ________
street, city of ________), in the county of ________ and state of Kansas, as a
candidate for the office of (here specify the office) ________, to be voted for at the
primary election to be held on the first Tuesday in August in ________, as representing
the principles of such party; and I further declare that I intend to support the candidate
herein named and that I have not signed and will not sign any nomination petition for any
other person, for such office at such primary election.

(HEADING)

Name of Signers.

Street Number
or Rural Route
(as registered).

Name of City

Date of Signing.

All nomination petitions shall have substantially the foregoing form, written or printed at
the top thereof. No signature shall be counted unless it is upon a sheet having such written
or printed form at the top thereof.

(c) Each signer of a nomination petition shall sign but one such petition for the same
office, and shall declare that such person intends to support the candidate therein named,
and shall add to such person's signature and residence, if in a city, by street and number (if
any); or, otherwise by post-office address. No signature shall be counted unless the place
of residence of the signer is clearly indicated and the date of signing given as herein required
and if ditto marks are used to indicate address they shall be continuous and clearly made.
Such sheets shall not be cut or pasted together.

(d) All signers of each separate nomination petition shall reside in the same county and
election district of the office sought. The affidavit described in this paragraph of a qualified
elector who resides in such county and election district or of the candidate shall be appended
to each petition and shall contain, at the end of each set of documents carried by each
circulator, a verification, signed by the circulator or the candidate, to the effect that such
circulator or the candidate personally witnessed the signing of the petition by each person
whose name appears thereon. The person making such affidavit shall be duly registered to
vote.

(e) Except as otherwise provided in subsection (g), nomination petitions shall be signed:

(1) If for a state officer elected on a statewide basis or for the office of United States
senator, by voters equal in number to not less than 1% of the total of the current voter
registration of the party designated in the state as compiled by the office of the secretary
of state;

(2) If for a state or national officer elected on less than a statewide basis, by voters equal
in number to not less than 2% of the total of the current voter registration of the party
designated in such district as compiled by the office of the secretary of state, except that
for the office of district magistrate judge, by not less than 2% of the total of the current
voter registration of the party designated in the county in which such office is to be filled
as certified to the secretary of state in accordance with K.S.A. 25-3302, and amendments
thereto;

(3) If for a county office, by voters equal in number to not less than 3% of the total of
the current voter registration of the party designated in such district or county as compiled
by the county election officer and certified to the secretary of state in accordance with
K.S.A. 25-3302, and amendments thereto; and

(4) If for a township office, by voters equal in number to not less than 3% of the total
of the current voter registration of the party designated in such township as compiled by
the county election officer and certified to the secretary of state in accordance with K.S.A.
25-3302, and amendments thereto.

(f) Subject to the requirements of K.S.A. 25-202, and amendments thereto, any political
organization filing nomination petitions for a majority of the state or county offices, as
provided in this act, shall have a separate primary election ballot as a political party and,
upon receipt of such nomination petitions, the respective officers shall prepare a separate
state and county ballot for such new party in their respective counties or districts thereof
in the same manner as is provided for existing parties.

(g) (1) In the year 1992, if new boundary lines are defined and districts established in
the manner prescribed by law on or after the effective date of this act and on or before May
10, 1992, for the offices of representative in the United States congress, senator and rep-
resentative in the legislature of the state of Kansas, and member of the state board of
education, nomination petitions for nomination to such offices shall be signed by voters
equal in number to not less than 1% of the total of the current voter registration of the
party designated in the district as compiled by the office of the secretary of state.

(2) In the year 1992, if new boundary lines are defined and districts established in the
manner prescribed by law on or after May 11, 1992, nomination petitions for nomination
to the following offices shall be signed by registered voters of the party designated in the
district equal in number to not less than the following:

(A) For the office of representative

in the United States congress1,000 registered voters;
(B) for the office of member of the

state board of education..300 registered voters;
(C) for the office of state

senator................75 registered voters; and
(D) for the office of state

representative.............25 registered voters.
(h) (1) In the year 1992, if new boundary lines are defined and districts established in
the manner prescribed by law for the offices of representative in the United States congress,
senator and representative in the legislature of the state of Kansas, and member of the state
board of education, on or before June 12, 1992, the deadline for filing nomination petitions
and declarations of intention to become a candidate for such office, accompanied by the fee
required by law, shall be June 24, 1992.

(2) In the year 1992, if new boundary lines are defined and districts established in the
manner prescribed by law for the offices of representative in the United States congress,
senator and representative in the legislature of the state of Kansas, and member of the state
board of education, on or after June 13, 1992, the deadline for filing nomination petitions
and declarations of intention to become a candidate for such office, accompanied by the fee
required by law, shall be July 14, 1992.

Sec. 3. On and after July 1, 1998, K.S.A. 43-158 is hereby amended to read as follows:
43-158. The following persons shall be excused from jury service: (a) Persons unable to ~~read,~~
~~write, and~~ understand the English language with a degree of proficiency sufficient to ~~fill out~~
respond to a jury questionnaire form prepared by the commissioner;

(b) persons under adjudication of incompetency; and

(c) persons who within ~~ten (10)~~ 10 years immediately preceding have been convicted
of or pleaded guilty, or nolo contendere, to an indictment or information charging a felony.

Sec. 4. On and after July 1, 1998, K.S.A. 43-161 is hereby amended to read as follows:
43-161. Each jury commissioner may require any person ~~summoned for jury duty~~ whose
name has been selected for a jury list prepared in accordance with the provisions of K.S.A.
43-162 and amendments thereto to answer in writing such questions as he the commissioner
may address to such person, ~~touching his~~ relating to such person's name, age, residence,
occupation and qualifications as a juror, with a view to the due and faithful jury service of
such person; and ~~also all~~ such questions ~~as to~~ involving similar matters ~~touching~~ relating to
all persons ~~in his household~~ living in such person's residence.

Any such person ~~summoned for jury duty who shall fail or refuse~~ whose name has been
selected for a jury list who fails or refuses to answer such questions in writing, and signing
~~his~~ such person's name thereto, shall be cited for contempt of court.

Any such person ~~summoned for jury duty~~ whose name has been selected for a jury list
who ~~shall~~ willfully or corruptly ~~make~~ makes false answers to such questions put to ~~him~~ such
person by the jury commissioner shall be ~~deemed to be~~ guilty of a class A nonperson mis-
demeanor.

Sec. 5. K.S.A. 20-355 and 25-205 are hereby repealed.

Sec. 6. On and after July 1, 1998, K.S.A. 43-158 and 43-161 are hereby repealed.'';

And by renumbering sections accordingly;

Also on page 9, in line 38, by striking ``statute book'' and inserting ``Kansas register'';

On page 1, in the title, by striking all in lines 10 through 14 and inserting ``AN ACT
concerning courts; relating to additional district magistrate positions; election filing require-
ments; jurors, qualifications and questionnaires; amending K.S.A. 20-355, 25-205, 43-158
and 43-161 and repealing the existing sections.'';

And your committee on conference recommends the adoption of this report.

Tim Carmody

Terry P. Presta

Jim D. Garner

Conferees on part of House

Tim Emert

Keith Schraad

Greta Goodwin

Conferees on part of Senate

Senator Emert moved the Senate adopt the Conference Committee report on SB 262.

On roll call, the vote was: Yeas 40, nays 0, present and passing 0; absent or not voting 0.

Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Downey,
Emert, Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger, Harrington, Hensley, Huel-
skamp, Jones, Jordan, Karr, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Prae-
ger, Pugh, Ranson, Salisbury, Salmans, Schraad, Steffes, Steineger, Tyson, Umbarger,
Vidricksen.

The Conference Committee report was adopted.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2739, submits the following report:

The Senate recedes from all of its amendments to the bill, and your committee on con-
ference further agrees to amend the bill, as printed with House Committee of the Whole
amendments, as follows:

On page 1, in line 22, by striking ``severity level 10, person felony'' and inserting ``class A
person misdemeanor'';

And your committee on conference recommends the adoption of this report.

Lana Oleen

Nancy Harrington

Sherman Jones

Conferees on part of Senate

Garry G. Boston

Ralph M. Tanner

Bonnie Sharp

Conferees on part of House

Senator Oleen moved the Senate adopt the Conference Committee report on HB 2739.

On roll call, the vote was: Yeas 40, nays 0, present and passing 0; absent or not voting 0.

Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Downey,
Emert, Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger, Harrington, Hensley, Huel-
skamp, Jones, Jordan, Karr, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Prae-
ger, Pugh, Ranson, Salisbury, Salmans, Schraad, Steffes, Steineger, Tyson, Umbarger,
Vidricksen.

The Conference Committee report was adopted.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to Senate Substitute for HB 2860, submits the following report:

The Senate recedes from the amendments by the Senate on final action;

The House accedes to all other amendments to the bill;

And your committee on conference agrees to further amend the bill, as printed as Senate
Substitute for House Bill No. 2680, as follows:

On page 1, by striking all in lines 14 through 24 and inserting:

``Section 1. K.S.A. 75-4317a is hereby amended to read as follows: 75-4317a. ~~(a)~~ As
used in this act,:

(a) ``Meeting'' means any gathering, assembly, telephone call or any other means of
direct interactive communication by a majority of a quorum of the membership of a body
or agency subject to this act for the purpose of discussing the business or affairs of the body
or agency.

(b) ``Meeting'' shall not mean a series of gatherings, assemblies, telephone calls or any
other means of direct interactive communication of the membership of the body or agency
subject to this act where each gathering, assembly, telephone call or other means of direct
interactive communication involves less than a majority of the quorum, but where collectively
more than a majority of a quorum are involved unless the participants had the specific
intention to avoid the requirements of K.S.A. 75-4318, and amendments thereto.'';

And your committee on conference recommends the adoption of this report.

Janice Hardenburger

Rich Becker

U. L. ``Rip'' Gooch

Conferees on part of Senate

Kent Glasscock

Tim Carmody

Gwen Welshimer

Conferees on part of House

Senator Hardenburger moved the Senate adopt the Conference Committee report on S.
Sub. HB 2860.

On roll call, the vote was: Yeas 22, nays 18, present and passing 0; absent or not voting
0.

Yeas: Becker, Bleeker, Bond, Brownlee, Corbin, Donovan, Emert, Gooch, Hardenburger,
Harrington, Jordan, Kerr, Langworthy, Morris, Praeger, Pugh, Salisbury, Salmans, Schraad,
Steffes, Umbarger, Vidricksen.

Nays: Barone, Biggs, Clark, Downey, Feleciano, Gilstrap, Goodwin, Hensley, Huelskamp,
Jones, Karr, Lawrence, Lee, Oleen, Petty, Ranson, Steineger, Tyson.

The Conference Committee report was adopted.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to SENATE Substitute for HB 2895, 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 as Amended by Senate on Final Action,
as follows:

On page 1, in line 19, by striking ``and''; in line 20, after the comma where it appears for
the first time, by inserting ``and June 30, 2000,'';

On page 2, following line 27, by inserting the following:

``Special education services aid
For the fiscal year ending June 30, 1999

$5,850,000'';

Also on page 2, in line 32, by striking all after ``(c)''; by striking all in line 33; in line 34,
by striking all before ``the'' and inserting in lieu thereof ``On July 1, 1998,''; in line 38, by
striking all after ``(d)''; by striking all in line 39; in line 40, by striking all before ``the'' and
inserting in lieu thereof ``On July 1, 1998,''; in line 42, after ``account'' by inserting ``of the
state general fund that,''; also in line 42, after ``which'' by inserting ``, an amount of not to
exceed $1,000,000'';

On page 3, following line 3, by inserting the following:

``(e) On July 1, 1998, of the $1,700,000 appropriated for the above agency for the fiscal
year ending June 30, 1999, by section 123(a) of 1998 Senate Bill No. 495 from the state
general fund in the innovative program assistance account, the sum of $100,000 is hereby
lapsed.'';

Also on page 3, in line 14, before ``operating'' by inserting ``appropriation of moneys in
the''; in line 15, after ``fund'' by inserting ``for the fiscal year ending June 30, 1999, as
prescribed''; following line 27, by inserting the following:

``Planning for transitional centers
For the fiscal year ending June 30, 1998

$200,000

Provided, That any unencumbered balance in the planning for transitional centers account
in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999: Provided
further, That all expenditures from this account shall be for the purpose of planning for
transitional centers to expand alternative punishment options: And provided further, That
the moneys in this account shall serve as the state match for expenditures from the violent
offender incarceration and truth in sentencing incentive grants--federal fund for planning
for transitional centers.

Community corrections
For the fiscal year ending June 30, 1999

$1,179,125

Provided, That, of the amount appropriated in the community corrections account of the
state general fund, the amount of $250,000 shall be expended for substance abuse and
mental health services: Provided further, That, of the amount appropriated in the com-
munity corrections account of the state general fund, the amount of $929,125 shall be
expended for the establishment of community intermediate sanctions centers to enhance
residential alternative punishment options and expand prison bed space: And provided fur-
ther, That community corrections organizations shall make services and programs available
to individuals serving terms and conditions of probation, parole or post-release supervision
from a state correctional facility.

Treatment and programs
For the fiscal year ending June 30, 1999

$250,000'';

Also on page 3, in line 30, after ``made'' by inserting ``from the conservation camp for
female offenders account''; in line 33, before the period, by inserting ``: Provided further,
That no expenditures may be made from this account until after the joint committee on
corrections and juvenile justice oversight has reviewed a report by the department of cor-
rections on local neighborhood impact''; following line 35, by inserting the following:

``(b) (1) In addition to the other purposes for which expenditures may be made by the
above agency from the capacity expansion planning account of the state general fund for
the fiscal year ending June 30, 1998, as authorized by section 45(a) of chapter 192 of the
1997 Session Laws of Kansas or by this or other appropriation act of the 1998 regular session
of the legislature, expenditures may be made by the above agency for fiscal year 1998 from
the capacity expansion planning account of the state general fund for the following capital
improvement project or projects: Planning for new reception and diagnostic unit.

(2) In addition to the other purposes for which expenditures may be made by the above
agency from the capacity expansion planning account of the state general fund for fiscal
year 1999, as authorized by this or other appropriation act of the 1998 regular session of
the legislature, expenditures may be made by the above agency for fiscal year 1999 from
the unencumbered balance as of June 30, 1998, in the capacity expansion planning account
of the state general fund for the following capital improvement project or projects: Planning
for new reception and diagnostic unit: Provided, That expenditures for such projects from
the unencumbered balance in the capacity expansion planning account of the state general
fund shall not exceed the unencumbered balance in such account as of June 30, 1998.'';

On page 4, in line 10, preceding ``On'' by inserting ``(1)''; following line 13, by inserting
the following:

``(2) On July 1, 1998, the amount designated for the Topeka correctional facility by
section 140(c) of 1998 Senate Bill No. 495 for the fiscal year ending June 30, 1999, is hereby
decreased from $12,884,190 to $12,843,470.'';

Also on page 4, in line 20, before ``operation'' by inserting ``establishment or''; also in line
20, after ``operation'' by inserting ``, or both,''; following line 23, by inserting the following:

``(h) In addition to the other purposes for which expenditures may be made by the
above agency from the violent offender incarceration and truth in sentencing incentive
grants--federal fund for the fiscal year ending June 30, 1999, as authorized by section 140(b)
of 1998 Senate Bill No. 495, expenditures may be made from the violent offender incar-
ceration and truth in sentencing incentive grants--federal fund for fiscal year 1999 to fund
the establishment and operation of transition centers to enhance alternative punishment
options and expand prison bed space: Provided, That expenditures for such purposes from
the violent offender incarceration and truth in sentencing incentive grants--federal fund
for fiscal year 1999 shall not exceed $1,605,000.

(i) In addition to the other purposes for which expenditures may be made by the above
agency from the violent offender incarceration and truth in sentencing incentive grants--
federal fund for the fiscal year ending June 30, 1999, as authorized by section 140(b) of
1998 Senate Bill No. 495, expenditures may be made from the violent offender incarceration
and truth in sentencing incentive grants--federal fund for fiscal year 1999 to fund the
establishment or operation, or both, of community intermediate sanctions centers as part
of the community corrections grant funding to enhance residential alternative punishment
options and expand prison bed space: Provided, That, community corrections organizations
shall make services and programs available to individuals serving terms and conditions of
probation, parole or post-release supervision from a state correctional facility: Provided
further, That expenditures for such purposes from the violent offender incarceration and
truth in sentencing incentive grants--federal fund for fiscal year 1999 shall not exceed
$555,500.'';

And by relettering subsections accordingly;

Also on page 4, following line 35, by inserting the following:

``(l) During the fiscal year ending June 30, 1998, and the fiscal year ending June 30,
1999, any unencumbered moneys in the correctional industries fund may be expended for
capital improvement projects for the renovation or repair of existing buildings or facilities
or for the construction or acquisition of buildings or facilities for correctional industries as
provided in K.S.A. 75-5281 and 75-5288 and amendments thereto: Provided, That such
capital improvement projects shall not be subject to the requirements to prepare and submit
capital improvement budget estimates as provided in K.S.A. 75-3717b and amendments
thereto: Provided further, That, prior to commencement of any such capital improvement
project, the director of Kansas correctional industries shall advise and consult with the joint
committee on state building construction concerning such capital improvement projects.

(m) During the fiscal year ending June 30, 1999, notwithstanding the provisions of
K.S.A. 75-3738 to 75-3744, inclusive, article 12 of chapter 75 of the Kansas Statutes An-
notated, article 58 of chapter 75 of the Kansas Statutes Annotated, and amendments thereto,
or of any other laws to the contrary, the secretary of corrections may enter into agreements
with a private individual, firm, corporation or other lawful entity for the purpose of accepting
as a donation, lease or purchase, on behalf of the state any building or renovation of a
building to be used for the manufacture and processing of goods, wares or merchandise, or
for any other business or commercial enterprise deemed by the secretary of corrections to
be consistent with the proper training and rehabilitation of inmates: Provided, That such
agreements may provide for the financing, design, construction or renovation of such build-
ings on the grounds of correctional facilities: Provided, however, That the secretary shall
not obligate the expenditure of state funds except as provided by K.S.A. 75-5281 and amend-
ments thereto: Provided further, That buildings constructed or renovated pursuant to this
subsection shall become the property of the state as provided by such agreements or after
20 years, whichever time period is shorter.'';

On page 5, following line 6, by inserting the following:

``(d) In addition to the other purposes for which expenditures may be made by the
above agency from the Kansas public employees retirement fund for the fiscal year ending
June 30, 1999, as authorized by section 99(a) of 1998 Senate Bill No. 495, expenditures may
be made by the above agency for fiscal year 1999 for the following specified purposes,
subject to the expenditure limitations prescribed therefor as follows:

Technology project

$2,400,000

Provided, That, beginning on July 1, 1998, the above agency shall submit to the joint com-
mittee on computers and telecommunications quarterly reports on the progress of imple-
menting the technology project, including a report of any proposed contracts with vendors
prior to entering into any such contracts.

(e) There is appropriated for the above agency from the Kansas public employees re-
tirement fund for the fiscal year or years specified, the following:

Technology project
For the fiscal year ending June 30, 2000

$600,000

Provided, That, beginning July 1, 1999, the above agency shall submit to the joint committee
on computers and telecommunications quarterly reports on the progress of the technology
project, including a report of any proposed contracts with vendors prior to entering into any
such contracts.'';

On page 6, in line 5, by striking ``1999'' where it appears for the last time, and inserting
in lieu thereof ``1998'';

On page 7, in line 39, after ``protection'' by inserting ``--federal fund.'';

On page 8, following line 4, by inserting the following:

``Operating expenditures--implementation of 1998 House Bill No. 2972
For the fiscal year ending June 30, 1999[cm$152,532[cmAid to local units
For the fiscal year ending June 30, 1999[cm$250,000[cmRelocation from Mills building
For the fiscal year ending June 30, 1999[cm$164,148'';

On page 9, in line 6, by striking ``$80,600'' and inserting in lieu thereof ``$40,300''; fol-
lowing line 7, by inserting the following:

``(i) On July 1, 1998, the position limitation established by section 119 of 1998 Senate
Bill No. 495 for the above agency is hereby increased from 834.6 to 837.6.

(j) On July 1, 1998, the expenditure limitation established by section 117(b) of 1998
Senate Bill No. 495 on the driving under the influence equipment fund is hereby increased
from $99,104 to No limit.

(k) On July 1, 1998, the expenditure limitation established by section 117(b) of 1998
Senate Bill No. 495 on the breast and cervical cancer program and detection fund is hereby
increased from $1,558,092 to No limit.

(l) On July 1, 1998, the expenditure limitation established by section 117(b) of 1998
Senate Bill No. 495 on the health and environment training fee fund is hereby increased
from $183,785 to No limit.

(m) On July 1, 1998, the expenditure limitation established by section 117(b) of 1998
Senate Bill No. 495 on the food service inspection reimbursement fund is hereby increased
from $510,000 to No limit.

(n) On July 1, 1998, the expenditure limitation established by section 117(b) of 1998
Senate Bill No. 495 on the health and environment publication fee fund is hereby increased
from $32,900 to No limit.

(o) On July 1, 1998, the expenditure limitation established by section 117(b) of 1998
Senate Bill No. 495 on the district coroners fund is hereby increased from $227,000 to No
limit.

(p) On July 1, 1998, the expenditure limitation established by section 117(b) of 1998
Senate Bill No. 495 on the adult care licensing revolving fund is hereby increased from $0
to No limit.

(q) On July 1, 1998, the expenditure limitation established by section 117(b) of 1998
Senate Bill No. 495 on the venereal disease control project fund--federal is hereby increased
from $645,204 to No limit.

(r) On July 1, 1998, the expenditure limitation established by section 117(b) of 1998
Senate Bill No. 495 on the immunization grant funds--federal fund is hereby increased
from $4,019,870 to No limit.

(s) On July 1, 1998, the expenditure limitation established by section 117(b) of 1998
Senate Bill No. 495 on the AIDS drug reimbursement program--federal fund is hereby
increased from $927,000 to No limit.

(t) On July 1, 1998, the expenditure limitation established by section 117(b) of 1998
Senate Bill No. 495 on the public water supply loan fund is hereby increased from
$1,042,107 to No limit.

(u) On July 1, 1998, the expenditure limitation established by section 117(b) of 1998
Senate Bill No. 495 on the Kansas water pollution control revolving fund is hereby increased
from $393,264 to No limit.

(v) On July 1, 1998, the expenditure limitation established by section 117(b) of 1998
Senate Bill No. 495 on the cost of issuance fund for Kansas water pollution control revolving
fund revenue bonds is hereby increased from $141,253 to No limit.

(w) In addition to the other purposes for which expenditures may be made by the above
agency from the AIDS drug reimbursement program--federal fund for the fiscal year end-
ing June 30, 1999, as authorized by section 117(b) of 1998 Senate Bill No. 495, expenditures
may be made by the above agency for fiscal year 1999 from the AIDS drug reimbursement
program--federal fund for fiscal year 1999, for development and implementation of cost
containment measures by the secretary of health and environment for the purposes of lim-
iting or controlling increases in the costs of the AIDS drug reimbursement program during
fiscal year 1999, subject to the condition that each individual who is currently on AIDS drug
assistance shall continue to receive AIDS drug assistance and shall not be denied such AIDS
drug assistance.

(x) In addition to the other purposes for which expenditures may be made by the above
agency from the salaries and wages for swine production facility inspectors account of the
state general fund for the fiscal year ending June 30, 1999, as authorized by section 117(a)
of 1998 Senate Bill No. 495, expenditures may be made by the above agency for fiscal year
1999 from the salaries and wages for swine production facility inspectors account of the
state general fund for fiscal year 1999, for operating expenditures for swine production
facility inspections during fiscal year 1999.

(y) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year or years specified, all moneys now or hereafter lawfully credited
to and available in such fund or funds, except that expenditures other than refunds author-
ized by law shall not exceed the following:

Food inspection fee fund
For the fiscal year ending June 30, 1999

Provided, That expenditures may be made from the food inspection fee fund for operating
expenditures for the food inspection program and other activities for the regulation of food
service establishments, food vending machines, food vending machine companies and food
vending machine dealers under the food service and lodging act: Provided further, That,
notwithstanding the provisions of K.S.A. 36-512 and amendments thereto to the contrary,
all moneys received from fees charged and collected by the secretary of health and envi-
ronment under the food inspection program and other activities for the regulation of food
service establishments, food vending machines, food vending machine companies and food
vending machine dealers under the food service and lodging act shall be deposited in the
state treasury and credited to this food inspection fee fund.'';

Also on page 9, in line 16, before ``is'' by inserting ``account of the economic development
research and development fund'';

On page 10, in line 5, by striking all after ``That''; by striking all in lines 6 through 10; in
line 11, by striking all before ``That'' and inserting in lieu thereof the following: ``all ex-
penditures from the Kansas sports hall of fame subaccount of the Kansas economic devel-
opment endowment account shall be made only for the purpose of matching an equal or
greater amount of federal or other nonstate governmental grant moneys or private grant or
donation moneys, or any combination thereof, received by the state of Kansas sports hall of
fame: Provided further, That no expenditure shall be made by the above agency from this
subaccount unless the secretary of commerce and housing has received information from
the state of Kansas sports hall of fame board of trustees that demonstrates that the state of
Kansas sports hall of fame has received the required matching funds for such expenditure:
And provided further,'';

On page 11, in line 15, by striking ``$493,822'' and inserting in lieu thereof ``$498,100'';
in line 16, by striking ``$621,318'' and inserting in lieu thereof ``$715,596''; following line 24,
by inserting the following:

``(d) On July 1, 1998, the position limitation established for the fiscal year ending June
30, 1999, by section 22 of chapter 123 of the 1997 Session Laws of Kansas for the Kansas
state board of cosmetology is hereby increased from 10.0 to 12.0.

(e) In addition to other purposes for which expenditures may be made by the above
agency from the cosmetology fee fund for the fiscal year ending June 30, 1999, as authorized
by section 8(a) of chapter 123 of the 1997 Session Laws of Kansas, by section 69(a) of 1998
Senate Bill No. 495 or by this or other appropriation act of the 1998 regular session of the
legislature, expenditures may be made by the above agency from the cosmetology fee fund
for fiscal year 1999 for a new computer system, including computer software, to replace the
existing computer hardware and software: Provided, That no expenditures shall be made
from the cosmetology fee fund for fiscal year 1999 for a new computer system, including
computer software, to replace the existing computer hardware and software except upon
approval of the state finance council acting on this matter which is hereby characterized as
a matter of legislative delegation and subject to the guidelines prescribed by subsection (c)
of K.S.A. 75-3711c and amendments thereto and acting on this matter after receiving a
recommendation thereon from the joint committee on computers and telecommunications:
Provided further, That, prior to the approval by the state finance council of any such ex-
penditure for such purpose from the cosmetology fee fund, the proposed plan and proposed
expenditures for the new computer system, including computer software, to replace the
existing computer hardware and software shall be reviewed by the joint committee on com-
puters and telecommunications and the joint committee on computers and telecommuni-
cations shall make a recommendation thereon to the state finance council.'';

On page 12, in line 2, by striking ``$50,000'' and inserting in lieu thereof ``$375,000'';

On page 13, in line 36, by striking ``the amount equal to''; in line 37, by striking all before
the period and inserting in lieu thereof ``$30,000'';

On page 14, in line 5, by striking all after ``except''; in line 6, by striking all before the
period and inserting in lieu thereof the following: ``after review by the joint committee on
corrections and juvenile justice oversight of a plan for distributing juvenile accountability
and incentive grants''; preceding line 7, by inserting the following:

``(c) On July 1, 1998, of the $2,500,000 appropriated for the above agency for the fiscal
year ending June 30, 1999, by section 146(a) of 1998 Senate Bill No. 495 from the state
general fund in the community initiatives account, the sum of $1,875,000 is hereby lapsed.

(d) On July 1, 1998, or as soon thereafter as moneys are available, the director of ac-
counts and reports shall transfer $1,875,000 from the state general fund to the Kansas
endowment for youth trust fund of the juvenile justice authority.

(e) In addition to the other purposes for which expenditures may be made by the above
agency from the Kansas endowment for youth trust fund for the fiscal year ending June 30,
1999, as authorized by section 146(b) of 1998 Senate Bill No. 495, expenditures may be
made from the Kansas endowment for youth trust fund for fiscal year 1999 for the purpose
of funding grants for prevention and early intervention programs, including a Kansas men-
toring initiative program.'';

And by relettering the remaining subsection accordingly;

Also on page 14, in line 25, by striking ``$1,682,643'' and inserting in lieu thereof
``$1,682,384''; in line 32, by striking ``$5,000'' and inserting in lieu thereof ``$13,000'';

On page 15, following line 6, by inserting the following:

``(b) There is appropriated for the above agency from the state institutions building fund
for the fiscal year or years specified, the following:'';

And by relettering subsections accordingly;

Also on page 15, by striking all in lines 9 and 10; following line 25, by inserting the
following:

``(e) Notwithstanding the provisions of this or any other appropriation act of the 1997
or 1998 regular session of the legislature, expenditures for the Wichita annex to the Kansas
veterans' home from moneys appropriated from the state general fund or from any special
revenue fund for the Kansas commission on veterans affairs for fiscal year 1998 or fiscal
year 1999 and designated for construction of the Kansas veterans' home shall not exceed
$12,000 except upon approval of the state finance council acting on this matter which is
hereby characterized as a matter of legislative delegation and subject to the guidelines
prescribed by subsection (c) of K.S.A. 75-3711c and amendments thereto.'';

Also on page 15, in line 26, by striking ``(d)'' and inserting in lieu thereof ``(f)''; by striking
all in lines 31 through 34; in line 35, by striking ``(b)'' and inserting in lieu thereof ``(a)'';

On page 16, in line 11, by striking ``$1,348,172'' and inserting in lieu thereof ``No limit'';
following line 22, by inserting the following:

``(f) On July 1, 1998, the expenditure limitation established by section 144(b) of 1998
Senate Bill No. 495 on the vehicle identification number fee fund is hereby increased from
$1,614,517 to No limit.

(g) During the fiscal year ending June 30, 1999, any full-time and regular part-time
positions of the Kansas highway patrol that are for capitol area police officers that are
assigned to security for state-owned properties located in Shawnee county under contracts
with other state agencies shall be in addition to any limitation on the number of full-time
and regular part-time positions equated to full-time, excluding seasonal and temporary po-
sitions, paid from appropriations for the Kansas highway patrol for fiscal year 1999, made
in this or other appropriation act of the 1998 regular session of the legislature: Provided,
That the Kansas highway patrol shall prepare and submit a report on all such positions
assigned to provide security under such contracts to the legislative budget committee prior
to the 1999 regular session of the legislature.'';

On page 17, by striking all in lines 1 and 2; following line 23, by inserting the following:

``(d) In addition to the other purposes for which expenditures may be made by the
Kansas department of wildlife and parks from any moneys appropriated from the state
general fund or from any special revenue fund for the fiscal year ending June 30, 1999, as
authorized by this or other appropriation act of the 1998 regular session of the legislature,
the Kansas department of wildlife and parks may make expenditures for fiscal year 1999 for
the purposes of and is hereby authorized, on behalf of the state of Kansas, to provide to the
U.S. Bureau of reclamation a letter of agreement committing the state of Kansas to provide
moneys equal to a maximum of 15% of the total cost, from the funding source identified in
the following proviso, to repair and restore the structural integrity of the dam at the Cedar
Bluff reservoir and the portion of state highway K-147 located on the dam and providing
that the state of Kansas will provide the required funding within 12 months of initiation of
repairs at the Cedar Bluff reservoir dam: Provided, That, with respect to this repair project,
the Kansas department of transportation is hereby authorized and directed to plan for such
repair project and to prepare and submit budget estimates to provide funding from the state
highway fund for such repair project and to enter into appropriate contracts to repair and
restore the integrity of the Cedar Bluff reservoir dam and state highway K-147: Provided,
however, That the amount of funding from the state highway fund for these purposes shall
be determined by an appropriation act enacted by the legislature during the 1999 regular
session.

(e) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year or years specified, all moneys now or hereafter lawfully credited
to and available in such fund or funds, except that expenditures other than refunds author-
ized by law shall not exceed the following:

EDIF--local government outdoor recreation grants
For the fiscal year ending June 30, 1999

$500,000

(f) On July 15, 1998, or as soon thereafter as moneys are available, the director of
accounts and reports shall transfer $500,000 from the Kansas economic development en-
dowment account of the state economic development initiatives fund of the department of
commerce and housing to the EDIF--local government outdoor recreation grants fund of
the department of wildlife and parks.'';

Also on page 17, by striking all in lines 28 and 29; in line 31, by striking ``$50,000'' and
inserting in lieu thereof ``$35,000''; by striking all in lines 32 through 43;

On page 18, by striking all in lines 1 through 8; in line 9, by striking ``(e)'' and inserting
in lieu thereof ``(b)''; in line 16, by striking ``applicants'';

On page 20, preceding line 15, by inserting the following:

``(d) There is appropriated for the above agency from the state general fund for the
fiscal year or years specified, the following:

Integrated library system
For the fiscal year ending June 30, 1999

$130,000

Provided, That no expenditures shall be made from the integrated library system account
until the chancellor of the university of Kansas certifies to the director of accounts and
reports that a refund has been deposited in the state general fund: Provided further, That
expenditures from this account shall not exceed the amount of the refund.'';

Also on page 20, in line 38, by striking ``1999'' and inserting in lieu thereof ``1998''; in
line 41, by striking ``1999'' and inserting in lieu thereof ``1998'';

On page 21, following line 13, by inserting the following:

``Construct storage bay #3
For the fiscal year ending June 30, 1999

$1,900,000'';

On page 22, following line 7, by inserting the following:

``Performance review board
For the fiscal year ending June 30, 1999[cm$40,000[cmStatehouse historic structures report
For the fiscal year ending June 30, 1999[cm$200,000``;

Also on page 22, in line 36, before ``charge'' by inserting ``fix,'';

On page 23, following line 22, by inserting the following:

``Microwave interconnection fund
For the fiscal year ending June 30, 1999

$116,800

Provided, That upon the approval of the Kansas public broadcasting council, expenditures
may be made from the microwave interconnection fund for grants to provide a microwave
interconnection between KPTS in Wichita, KTWU in Topeka, the Kansas statehouse, and
Smoky Hills public television in Bunker Hill.'';

On page 24, in line 7, after ``may'' by inserting ``authorize and''; in line 8, by striking ``in
this subsection'' and inserting in lieu thereof: ``for the above agency for fiscal year 1999 by
this or other appropriation act of the 1998 regular session of the legislature, which are
available for the maintenance or operations of the Topeka state hospital property,'';

On page 25, in line 18, by striking ``section'' and inserting in lieu thereof ``subsection'';

On page 26, following line 20, by inserting the following:

``(j) On July 1, 1998, the expenditure limitation established by section 104(b) of 1998
Senate Bill No. 495 on the architectural services recovery fund is hereby decreased from
$1,226,734 to $1,176,173.

(k) On July 15, 1998, or as soon after such date as moneys are available, the director of
accounts and reports shall transfer $116,800 from the Kansas economic development en-
dowment account of the state economic development initiatives fund of the department of
commerce and housing to the microwave interconnection fund of the department of ad-
ministration.'';

Also on page 26, in line 26, by striking ``$468,197'' and inserting in lieu thereof ``$288,257'';
in line 37, by striking ``$757,382'' and inserting in lieu thereof ``$789,158'';

On page 27, in line 5, by striking ``1,188.5'' and inserting in lieu thereof ``1,185.5''; in line
9, by striking ``the effective date of this act'' and inserting in lieu thereof ``July 1, 1998''; in
line 31, by striking ``$5,110,195'' and inserting in lieu thereof ``$5,140,683''; in line 32, after
``made'' by inserting ``from the mental health and retardation services aid and assistance and
state institutions operations account''; in line 33, after ``reimbursement'' by inserting ``rates'';
in line 34, after ``That'' by inserting ``in adjusting such rates,''; also in line 34, before the
colon, by inserting ``, including discussions and input concerning direct care staff salaries
and benefits''; in line 35, after ``expenditures'' by inserting ``from this account'';

On page 28, in line 19, by striking ``the effective date of this act'' and inserting in lieu
thereof ``July 1, 1998''; in line 22, by striking ``1999'' and inserting in lieu thereof ``1998'';
in line 28, after ``XIX'' by inserting ``fund''; in line 40, by striking all after ``fund''; in line 41,
by striking all before ``is'';

On page 29, following line 5, by inserting the following:

``(l) On the effective date of this act, the expenditure limitation established by section
30(l) of 1998 Senate Bill No. 495 on the state operations account of the social services
clearing fund is hereby increased from $242,359,423 to $243,439,423.'';

On page 30, by striking all in lines 5 through 8 and inserting in lieu thereof the following:

``(b) During the fiscal year ending June 30, 1999, in addition to the duties established
in section 85(c) of 1998 Senate Bill No. 495, the SRS transition oversight committee shall
review and evaluate the mental health system including consumer run organizations, com-
munity mental health centers and mental health reform as it relates to nursing facilities for
mental health: Provided, That the SRS transition oversight committee shall also review the
salaries of non-state employee direct care staff.'';

Also on page 30, following line 17, by inserting the following:

``Legislative research department--operations
For the fiscal year ending June 30, 1999

$25,000'';

On page 33, following line 12, by inserting the following:

``(h) (1) In addition to the other purposes for which expenditures may be made by each
state agency from appropriations made for the fiscal year ending June 30, 1999, expenditures
shall be made by each state agency from the appropriations made for fiscal year 1999 for
an additional amount of per diem compensation equal to the amount required to provide,
along with the amount of per diem compensation otherwise payable, an aggregate amount
of compensation of $72.06 per calendar day for each member of a board for any calendar
day occurring on or after June 14, 1998, for which per diem compensation is payable to
such member of a board under K.S.A. 75-3212 or 75-3223 and amendments thereto at the
rate prescribed by subsection (a) of K.S.A. 46-137a and amendments thereto: Provided,
That expenditures for such purpose shall be made in the same manner and at the same
times that per diem compensation is payable to such member of a board for the biweekly
pay periods for which such per diem compensation for calendar days occurring on or after
June 14, 1998, is payable and which are chargeable to fiscal year 1999.

(2) As used in this subsection (h), (A) ``state agency'' means any state agency of the
executive branch of state government (i) which has appropriations made for the fiscal year
ending June 30, 1999, by 1998 Senate Bill No. 495, this act or any other appropriation act
of the 1998 regular session of the legislature, and (ii) which is a board or which makes
expenditures for any board; and

(B) ``board'' means any board, commission, committee, task force, panel or other body
in the executive branch of state government, including any advisory body, having one or
more members who are entitled to receive per diem compensation for attendance at meet-
ings of such body, or attendance at meetings authorized by such body of a subcommittee
or other subsidiary group of such body, as provided in K.S.A. 75-3212 or 75-3223 and
amendments thereto at the rate prescribed by subsection (a) of K.S.A. 46-137a and amend-
ments thereto.

(i) In addition to the other purposes for which expenditures may be made by the Kansas
turnpike authority for the period commencing June 14, 1998, and ending June 30, 1999,
expenditures shall be made by the Kansas turnpike authority for such period for an additional
amount of per diem compensation equal to the amount required to provide, along with the
amount of per diem compensation otherwise payable, an aggregate amount of compensation
of $72.06 per calendar day for each member of the Kansas turnpike authority for any cal-
endar day occurring on or after June 14, 1998, for which per diem compensation is payable
to such member under K.S.A. 68-2003 and amendments thereto who is entitled, in accord-
ance with K.S.A. 75-3223 and amendments thereto, to receive such per diem compensation
as provided in K.S.A. 75-3212 and amendments thereto at the rate prescribed by subsection
(a) of K.S.A. 46-137a and amendments thereto: Provided, That expenditures for such pur-
pose shall be made in the same manner and at the same times that per diem compensation
is payable to such member of the Kansas turnpike authority for the appropriate pay periods
for which such per diem compensation for calendar days occurring on or after June 14,
1998, and prior to July 1, 1999, is payable by the Kansas turnpike authority.

(j) In addition to the other purposes for which expenditures may be made by the leg-
islature from the operations (including official hospitality) account of the state general fund
for the fiscal year ending June 30, 1999, expenditures shall be made by the legislature from
the operations (including official hospitality) account of the state general fund for fiscal year
1999 (1) for an additional amount of per diem compensation equal to the amount required
to provide, along with the amount of per diem compensation otherwise payable, an aggregate
amount of compensation of $72.06 per calendar day for each member of the legislature for
service at the regular session or any special session of the legislature for any calendar day
occurring on or after June 14, 1998, and (2) for an additional amount of per diem compen-
sation equal to the amount required to provide, along with the amount of per diem com-
pensation otherwise payable, an aggregate amount of compensation of $72.06 per calendar
day for each member of the legislature and for any other public officer or person for any
calendar day occurring on or after June 14, 1998, for which per diem compensation is
payable from appropriations for the legislature to such member of the legislature, public
officer or person under K.S.A. 75-3212 or 75-3223 and amendments thereto at the rate
prescribed by subsection (a) of K.S.A. 46-137a and amendments thereto: Provided, That
expenditures for such purposes shall be made in the same manner and at the same times
that per diem compensation is payable to such members of the legislature, public officials
and persons for the biweekly pay periods for which such per diem compensation for calendar
days occurring on or after June 14, 1998, is payable and which are chargeable to fiscal year
1999.

(k) On and after June 14, 1998, in addition to the other purposes for which expenditures
may be made by the legislature from the operations (including official hospitality) account
of the state general fund for the fiscal year ending June 30, 1999, expenditures shall be
made by the legislature from the operations (including official hospitality) account of the
state general fund for fiscal year 1999 for an additional amount of biweekly compensation
for the following legislative officers equal to the amount required to provide, along with the
amount of biweekly compensation otherwise payable, an aggregate amount of compensation
per biweekly pay period for such legislative officers as follows: (1) For the president of the
senate and the speaker of the house of representatives equal to the amount required to
provide an aggregate amount of $438.82 per biweekly pay period for services performed in
connection with discharging the duties assigned to the respective positions, (2) for the
speaker pro tem of the house of representatives, the vice president of the senate, the assistant
majority leaders of the senate and house of representatives, and the assistant minority leaders
of the senate and house of representatives equal to the amount required to provide an
aggregate amount of $223.97 per biweekly pay period for services performed in connection
with discharging the duties assigned to the respective positions, (3) for the chairperson of
the senate committee on ways and means and the chairperson of the house of representatives
committee on appropriations equal to the amount required to provide an aggregate amount
of $352.89 per biweekly pay period for services performed in connection with discharging
the duties assigned to the respective positions, (4) for the majority leaders of the senate and
house of representatives equal to the amount required to provide an aggregate amount of
$395.89 per biweekly pay period for services performed in connection with discharging the
duties assigned to the respective positions, and (5) the minority leaders of the senate and
house of representatives equal to the amount required to provide an aggregate amount of
$395.89 per biweekly pay period for services performed in connection with discharging the
duties assigned to the respective positions: Provided, That expenditures for such purpose
shall be made in the same manner and at the same times that biweekly compensation is
payable to such legislative officers under K.S.A. 46-137b and amendments thereto for the
biweekly pay periods which commence on or after June 14, 1998, and which are chargeable
to fiscal year 1999.

(l) In addition to the other purposes for which expenditures may be made by the leg-
islative coordinating council from the legislative coordinating council--operations account
of the state general fund for the fiscal year ending June 30, 1999, expenditures shall be
made by the legislative coordinating council from the legislative coordinating council--
operations account of the state general fund for fiscal year 1999 for an additional amount
of per diem compensation equal to the amount required to provide, along with the amount
of per diem compensation otherwise payable, an aggregate amount of compensation of
$72.06 per calendar day for each member of the legislative coordinating council for any
calendar day occurring on or after June 14, 1998, for which per diem compensation is
payable from appropriations for the legislative coordinating council under K.S.A. 46-1209
and amendments thereto to such member as provided in K.S.A. 75-3212 and amendments
thereto at the rate prescribed by subsection (a) of K.S.A. 46-137a and amendments thereto:
Provided, That expenditures for such purposes shall be made in the same manner and at
the same times that per diem compensation is payable to such members of the legislative
coordinating council for the biweekly pay periods for which such per diem compensation is
payable for calendar days occurring on or after June 14, 1998, and which are chargeable to
fiscal year 1999.

(m) In addition to the other purposes for which expenditures may be made by the
division of post audit from the operations (including legislative post audit committee) ac-
count of the state general fund for the fiscal year ending June 30, 1999, expenditures shall
be made by the division of post audit from the operations (including legislative post audit
committee) account of the state general fund for fiscal year 1999 (1) for an additional amount
of per diem compensation equal to the amount required to provide, along with the amount
of per diem compensation otherwise payable, an aggregate amount of compensation of
$72.06 per calendar day for each member of the legislative post audit committee for any
calendar day occurring on or after June 14, 1998, for which per diem compensation is
payable from appropriations for the division of post audit under K.S.A. 46-1104 and amend-
ments thereto to such member as provided in K.S.A. 75-3212 and amendments thereto at
the rate prescribed by subsection (a) of K.S.A. 46-137a and amendments thereto, and (2)
for an additional amount of per diem compensation equal to the amount required to provide,
along with the amount of per diem compensation otherwise payable, an aggregate amount
of compensation of $72.06 per calendar day for each member of the contract audit com-
mittee for any calendar day occurring on or after June 14, 1998, for which per diem com-
pensation is payable from appropriations for the division of post audit under K.S.A. 46-1120
and amendments thereto to such member as provided in K.S.A. 75-3223 and amendments
thereto at the rate prescribed by subsection (a) of K.S.A. 46-137a and amendments thereto:
Provided, That expenditures for such purposes shall be made in the same manner and at
the same times that per diem compensation is payable to such members of the legislative
post audit committee or contract audit committee for the biweekly pay periods for which
such per diem compensation is payable for calendar days occurring on or after June 14,
1998, and which are chargeable to fiscal year 1999.

(n) In addition to the other purposes for which expenditures may be made by the judicial
branch from the judiciary operations account of the state general fund for the fiscal year
ending June 30, 1999, expenditures shall be made by the judicial branch from the judiciary
operations account of the state general fund for fiscal year 1999 (1) for an additional amount
of per diem compensation equal to the amount required to provide, along with the amount
of per diem compensation otherwise payable, an aggregate amount of compensation of
$72.06 per calendar day for each member of the advisory council on dispute resolution for
any calendar day occurring on or after June 14, 1998, for which per diem compensation is
payable to such member of the advisory council on dispute resolution under K.S.A. 5-505
and amendments thereto who is entitled, in accordance with subsection (e) of K.S.A. 75-
3223 and amendments thereto, to receive such per diem compensation as provided in K.S.A.
75-3212 and amendments thereto at the rate prescribed by subsection (a) of K.S.A. 46-137a
and amendments thereto; and (2) for an additional amount of per diem compensation equal
to the amount required to provide, along with the amount of per diem compensation oth-
erwise payable, an aggregate amount of compensation of $72.06 per calendar day for each
retired justice or judge who performs judicial service or duties under K.S.A. 20-2616 and
amendments thereto for each calendar day occurring on or after June 14, 1998, for which
per diem compensation is payable to such retired justice or judge under K.S.A. 20-2616 and
amendments thereto: Provided, That expenditures for such purposes shall be made in the
same manner and at the same times that per diem compensation is payable to such members
of the advisory council on dispute resolution or to such retired justices or judges for the
biweekly pay periods for which such per diem compensation for calendar days occurring on
or after June 14, 1998, is payable and which are chargeable to fiscal year 1999.

(o) In addition to the other purposes for which expenditures may be made by the judicial
council from the operating expenditures account of the state general fund for the fiscal year
ending June 30, 1999, expenditures shall be made by the judicial council from the operating
expenditures account of the state general fund for fiscal year 1999 for an additional amount
of per diem compensation equal to the amount required to provide, along with the amount
of per diem compensation otherwise payable, an aggregate amount of compensation of
$72.06 per calendar day for each member of the judicial council and for each regularly
appointed member of a special committee of the judicial council who is not a member of
the judicial council for any calendar day occurring on or after June 14, 1998, for which per
diem compensation is payable to such member of the judicial council or a special committee
thereof under K.S.A. 20-2206 and amendments thereto at the rate of compensation in
accordance with K.S.A. 75-3212 and amendments thereto at the rate prescribed by subsec-
tion (a) of K.S.A. 46-137a and amendments thereto: Provided, That expenditures for such
purposes shall be made in the same manner and at the same times that per diem compen-
sation is payable to such members of the judicial council or special committees thereof for
the biweekly pay periods for which such per diem compensation for calendar days occurring
on or after June 14, 1998, is payable and which are chargeable to fiscal year 1999.'';

Also on page 33, in line 25, by striking ``PA'' and inserting in lieu thereof ``P.A.''; in line
32, by striking ``and'' where it appears for the last time;

On page 35, in line 1, by striking the semicolon and inserting in lieu thereof a period; by
striking all in lines 2 through 15 and inserting in lieu thereof the following:

``(c) In addition, the amendments to such contract shall provide that:

(1) The total amount of attorney fees paid pursuant to the such contract shall not exceed
$20,000,000. The division of attorney fees paid pursuant to the such contract between na-
tional counsel and local counsel shall be a matter resolved by the various private counsel.

(2) The actual amount of attorney fees shall be determined in accordance with the
contract, as amended in accordance with this section, in accordance with 1995 Kan. Ct. R.
Annot. 226, MRPC 1.5, in accordance with the terms of any settlement agreement or any
other resolution process.

(3) The limitations on attorney fees prescribed by the contract, as amended in accord-
ance with this section, shall not apply to fees which the tobacco defendants may be directly
liable for and which are paid to one or more of such firms, except that any such attorney
fees awarded and paid to such firms shall be credited toward the attorney fee limitations
prescribed by this section and provided for in the amended contract.

(d) The amendments to such contract shall provide for attorney fees under such contract
to be reviewed and determined as follows:

(1) As required by the model rules of professional conduct (MRPC)1.5(d), upon con-
clusion of the case, counsel shall provide to the attorney general a written statement on the
outcome of the case. If there is a monetary recovery, the statement shall set forth the state
of Kansas share of the recovery and shall specify the amount and the method of determi-
nation. The statement shall also specify what the counsel consider to be their reasonable
expenses and attorneys fees. The contract shall provide for a copy of the statement to be
provided to the president of the senate, the speaker of the house of representatives, and
any member of the legislature of Kansas who requests a copy of such statement.

(2) After receiving such statement, the attorney general shall file an application for such
review of the attorney fees and expenses. The attorney general shall file an application for
such review with the Kansas supreme court and, if the Kansas supreme court does not
conduct the initial review, shall file an application for such review with an appropriate Kansas
state district court. After any such review by a Kansas state district court, the attorney general
shall consider whether the decision of the Kansas state district court should be appealed to
the Kansas supreme court.

(3) In the event a settlement is concluded with a provision for the payment of attorney
fees and expenses by award of an arbitration panel from funds provided by the defendant
tobacco companies, counsel will seek the recovery of their reasonable expenses and attorney
fees in accordance with that arbitration process and will elect not to seek the same from the
state of Kansas pursuant to this contract.'';

Also on page 35, following line 15, by inserting the following:

``Sec. 51.

STATE CORPORATION COMMISSION (a) In addition to the provisions of the provisos to the appropriation of moneys in the
conservation fee fund for the fiscal year ending June 30, 1999, as prescribed in section
102(a) of 1998 Senate Bill No. 495, the state corporation commission shall prepare a report
to be made available at the beginning of the 1999 regular session of the legislature to the
house of representatives committee on appropriations, the senate committee on ways and
means, the house of representatives committee on environment, and the senate committee
on energy and natural resources containing the response of the state corporation commission
to the February 1998 performance audit by the division of post audit ``reviewing the activities
of the corporation commission's conservation division'' (98-36).

(b) On the effective date of this act, the expenditure limitation established by section
37(a) of chapter 192 of the 1997 Session Laws of Kansas on the aggregate expenditures
from the public service regulation fund, the motor carrier license fees fund and the con-
servation fee fund is hereby decreased from $11,997,605 to $11,967,492.

(c) On July 1, 1998, the expenditure limitation established by section 102(b) of 1998
Senate Bill No. 495 on the aggregate expenditures from the public service regulation fund,
the motor carrier license fees fund and the conservation fee fund is hereby decreased from
$12,745,569 to $12,715,456.

(d) On July 1, 1998, the position limitation established by section 105 of 1998 Senate
Bill No. 495 for the above agency is hereby decreased from 212.0 to 211.0.

Sec. 52.

INSURANCE DEPARTMENT (a) On July 1, 1998, the expenditure limitation established by section 92(a) of 1998
Senate Bill No. 495 on the insurance department service regulation fund is hereby increased
from $6,504,003 to $6,672,904.

(b) On July 1, 1998, the position limitation established by section 94 of 1998 Senate Bill
No. 495 for the above agency is hereby increased from 161.5 to 163.5.

Sec. 53.

STATE LIBRARY (a) There is appropriated for the above agency from the state general fund for the fiscal
year or years specified, the following:

Grants to libraries and library systems
For the fiscal year ending June 30, 1999

$50,000

(b) On July 1, 1998, the amount prescribed by the proviso to the grants to libraries and
library systems account of the state general fund in section 124(a) of 1998 Senate Bill No.
495 to be distributed as grants in aid to libraries in accordance with K.S.A. 75-2555 and
amendments thereto is hereby increased from $2,375,121 to $2,425,121.

Sec. 54.

JUDICIAL BRANCH (a) On July 1, 1998, of the $74,057,667 appropriated for the above agency for the fiscal
year ending June 30, 1999, by section 98(a) of 1998 Senate Bill No. 495 from the state
general fund in the judiciary operations account, the sum of $148,326 is hereby lapsed.

Sec. 55.

STATE BOARD OF TAX APPEALS (a) There is appropriated for the above agency from the state general fund for the fiscal
year or years specified, the following:

Operating expenditures
For the fiscal year ending June 30, 1999

$700,000

(b) On July 1, 1998, the position limitation established by section 113 of 1998 Senate
Bill No. 495 for the above agency is hereby increased from 30.0 to 37.0.'';

And by renumbering sections accordingly;

In the title, in line 12, by striking ``and''; also in line 12, after ``1999'' by inserting ``, and
June 30, 2000'';

And your committee on conference recommends the adoption of this report.

Dave Kerr

Alicia L. Salisbury

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 S. Sub. HB
2895.

On roll call, the vote was: Yeas 32, nays 8, present and passing 0; absent or not voting 0.

Yeas: Barone, Becker, Biggs, Bond, Corbin, Donovan, Downey, Emert, Feleciano, Gil-
strap, Gooch, Goodwin, Hardenburger, Harrington, Hensley, Jones, Jordan, Karr, Kerr,
Langworthy, Lawrence, Morris, Oleen, Petty, Praeger, Ranson, Salisbury, Schraad, Steffes,
Steineger, Umbarger, Vidricksen.

Nays: Bleeker, Brownlee, Clark, Huelskamp, Lee, Pugh, Salmans, Tyson.

The Conference Committee report was adopted.

EXPLANATION OF VOTE Mr. President: I vote no because of our failure to act in a reasonable way to hold the
line on spending. Especially, in a good money year, it is completely irresponsible to think
that we can establish and grow programs that people come to depend on. It is irresponsible
to create black holes that must be funded into perpetuity and are almost impossible to
remove. And it is not wise to assume that by such funding, government can solve all the
problems of individuals which they could better solve themselves.--Laurie Bleeker

Mr. President: We provided needed taxpayer relief on passing a tax reduction package.
At that time we made sure that we would have enough projected revenue for modest spend-
ing increases.

Now we are completing our spending for 1999 and our commitment for the out years.
Since this bill spends us into deficit spending, according to projections, in the out years I
cannot support it. We are not using good economics, we are not using good business pro-
cedures, we are not using common sense in committing Kansas government to this level of
spending in future years.--Robert Tyson

MESSAGE FROM THE HOUSE

Announcing the House adopts the conference committee report on HB 2510.

The House adopts the conference committee report on SB 6.

The House adopts the conference committee report on SB 11.

The House adopts the conference committee report on SB 234.

The House adopts the conference committee report on Substitute SB 675.

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: SB 6,
11, 234; Sub. SB 675.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 6, 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 Senate Committee of the Whole
amendments, as follows:

By striking all on pages 5 through 8 and inserting the following:

``New Section 1. (a) Any taxpayer described in K.S.A. 79-1106 and amendments thereto
which owns, capitalizes or utilizes an affiliate with one of the affiliate's purposes being to
make, hold or manage for, or on behalf of, the taxpayer, investments in securities which the
taxpayer would be permitted to make for its own account may be required to file consoli-
dated returns or combined reports for purposes of determining the tax liability under article
11 of chapter 79 of the Kansas Statutes Annotated as if such taxpayer and affiliate were one
entity.

(b) (1) Any taxpayer required to file a consolidated return or combined report under
section 1 and amendments thereto, and required to determine an apportionment percentage
under K.S.A. 79-1129 and amendments thereto shall not include in either the numerator
or the denominator of the receipts factor described in K.S.A. 79-1130 and amendments
thereto amounts received from or provided to an affiliate described in subsection (a) as
consideration from investment assets and activities and trading assets and activities that
represent inter-company transactions between the taxpayer and such affiliate; and

(2) receipts as described in subsection (m) of K.S.A. 79-1130 and amendments thereto
received by an affiliate described in subsection (a) shall be treated by a taxpayer required
to file a consolidated return or combined report under section 1 and amendments thereto
as receipts of the taxpayer.

(c) For taxpayers described in K.S.A. 79-1106 and amendments thereto, the secretary
of revenue may require returns on a consolidated basis or combined reporting and may
distribute or allocate gross income, deductions, credits, or allowances between two or more
organizations, trades or businesses, whether or not incorporated, or organized in the United
States or Kansas or affiliated, owned or controlled directly or indirectly by the same interests,
if the secretary of revenue determines such allocation is necessary to prevent evasion of
taxes or to clearly reflect income of the organizations, trades or businesses.

(d) This section shall be and constitute a part of and shall be supplemental to the
privilege tax statutes enacted at K.S.A. 79-1106 et seq. and amendments thereto.

Sec. 2. K.S.A. 79-1107 is hereby amended to read as follows: 79-1107. Every national
banking association and state bank located or doing business within the state shall pay to
the state for the privilege of doing business within the state a tax according to or measured
by its net income for the next preceding taxable year to be computed as provided in this
act. Such tax shall consist of a normal tax and a surtax and shall be computed as follows:

(a) The normal tax shall be an amount equal to ~~41/4%~~ 21/4% of such net income; and

(b) the surtax shall be an amount equal to 21/8% of such net income in excess of $25,000.

The tax levied shall be in lieu of ad valorem taxes which might otherwise be imposed by
the state or political subdivisions thereof upon shares of capital stock or the intangible assets
of national banking associations and state banks.

Sec. 3. K.S.A. 79-1108 is hereby amended to read as follows: 79-1108. Every trust
company and savings and loan association located or doing business within the state shall
pay to the state for the privilege of doing business within the state a tax according to or
measured by its net income for the next preceding taxable year to be computed as provided
in this act. Such tax shall consist of a normal tax and a surtax and shall be computed as
follows:

(a) The normal tax on every trust company and savings and loan association shall be an
amount equal to ~~41/2%~~ 21/4% of such net income; and

(b) the surtax on every trust company and savings and loan association shall be an
amount equal to 21/4% of such net income in excess of $25,000.

The tax levied shall be in lieu of ad valorem taxes which might otherwise be imposed by
the state or political subdivision thereof upon shares of capital stock or other intangible
assets of trust companies and savings and loan associations.

New Sec. 4. The provisions of this act shall apply to all taxable years commencing after
December 31, 1997.

Sec. 5. K.S.A. 79-1107 and 79-1108 are hereby repealed.

Sec. 6. This act shall take effect and be in force from and after its publication in the
statute book.'';

In the title, in line 12, by striking all after ``to''; by striking all in lines 13 through 15 and
inserting ``financial institution privilege taxation; amending K.S.A. 79-1107 and 79-1108 and
repealing the existing sections.'';

And your committee on conference recommends the adoption of this report.

Phill Kline

Tony Powell

Conferees on part of House

Audrey Langworthy

David R. corbin

Conferees on part of Senate

Senator Steffes moved the Senate adopt the Conference Committee report on SB 6.

On roll call, the vote was: Yeas 37, nays 3, present and passing 0; absent or not voting 0.

Yeas: Barone, Becker, Biggs, Bond, Brownlee, Clark, Corbin, Donovan, Downey, Emert,
Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger, Harrington, Hensley, Jones, Jordan,
Karr, Kerr, Langworthy, Lawrence, Morris, Oleen, Petty, Praeger, Pugh, Ranson, Salisbury,
Salmans, Schraad, Steffes, Steineger, Tyson, Umbarger, Vidricksen.

Nays: Bleeker, Huelskamp, Lee.

The Conference Committee report was adopted.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 11, submits the following report:

The Senate accedes to all House amendments to the bill, and your committee on con-
ference further agrees to amend the bill, as printed with House Committee of the Whole
amendments, as follows:

On page 1, by striking all in lines 32 through 43;

By striking all on pages 2 through 74;

On page 75, by striking all in lines 1 through 7 and inserting the following:

``Section 1. K.S.A. 1997 Supp. 20-2601, as amended by section 15 of 1998 Senate Bill
No. 382, is hereby amended to read as follows: 20-2601. As used in K.S.A. 20-2601 et seq.
and amendments thereto, unless the context otherwise requires:

(a) ``Fund'' means the Kansas public employees retirement fund created by K.S.A. 74-
4921 and amendments thereto;

(b) ``retirement system for judges'' means the system provided for in the acts contained
in article 26 of chapter 20 of the Kansas Statutes Annotated and any acts amendatory thereof
or supplemental thereto;

(c) ``judge'' means any duly elected or appointed justice of the supreme court, judge of
the court of appeals or judge of any district court of Kansas, who serves in such capacity on
and after the effective date of this act and commencing with the first day of the first payroll
period of the fiscal year ending June 30, 1994, any district magistrate judge who makes an
election as provided in K.S.A. 20-2620 and amendments thereto or who is elected or ap-
pointed on or after July 1, 1993;

(d) ``member'' means a judge who is making the required contributions to the fund, or
any former judge who has made the required contributions to the fund and has not received
a refund of the judge's accumulated contributions;

(e) ``prior service'' means all the periods of time any judge has served in such capacity
prior to the effective date of this act except that district magistrate judges who have service
credit under the Kansas public employees retirement system must make application to the
board and, subject to the provisions of section 83 and amendments thereto, make payment
as required by the board to transfer service credit from the Kansas public employees re-
tirement system to the retirement system for judges;

(f) ``current service'' means the period of service any judge serves in such capacity from
and after the effective date of this act;

(g) ``military service'' means service of any judge for which retirement benefit credit
must be given as provided in the uniformed services employment and reemployment rights
act of 1994, as in effect on July 1, 1998;

(h) ``total years of service'' means the total number of years served as a judge, including
prior service, military service and current service as defined by this section, computed to
the nearest quarter;

(i) ``salary'' means the statutory salary of a judge;

(j) ``final average salary'' means that determined as provided in subsection (b) of K.S.A.
20-2610 and amendments thereto;

(k) ``beneficiary'' means any natural person or persons or estate designated by a judge
in the latest designation of beneficiary received in the retirement system office to receive
any benefits as provided for by this act. Except as provided in subsection (n), if there is no
named beneficiary living at the time of the judge's death, any benefits provided for by this
act shall be paid to: (1) The judge's surviving spouse; (2) the judge's dependent child or
children; (3) the judge's dependent parent or parents; (4) the judge's nondependent child
or children; (5) the judge's nondependent parent or parents; or (6) the estate of the deceased
member; in the order of preference as specified in this subsection. ~~Any payment made to~~
~~a named beneficiary shall be a full discharge and release to the system from any further~~
~~claims. Any payment made to a beneficiary as provided in clauses (1), (2), (3), (4), (5) or~~
~~(6) of this subsection, as determined by the board, shall be a full discharge and release to~~
~~the system from any further claims. Whenever any payment is payable to more than one~~
~~beneficiary such payment shall be made to such beneficiaries jointly. Any benefits payable~~
~~to a beneficiary or beneficiaries who are minor children or incompetent persons shall be~~
~~made in the name of the beneficiary or beneficiaries and delivered to the lawfully appointed~~
~~conservator of such beneficiaries who was nominated by will or as otherwise provided by~~
~~law, except that in those cases where the benefit involves only the payment of the judge's~~
~~accumulated contributions with interest as provided by this act in an amount not to exceed~~
~~$500, the board is hereby authorized in its discretion without the appointment of a conser-~~
~~vator or the giving of a bond to pay such amount as is due to the minor or minors themselves,~~
~~any payment so made shall be a full discharge and release to the system from any further~~
~~claims.~~ Designations of beneficiaries by a member who is a member of more than one
retirement system made on or after July 1, 1987, shall be the basis of any benefits payable
under all systems unless otherwise provided by law;

(l) ``annuity'' means a series of equal monthly payments, payable at the end of each
calendar month during the life of a retired judge, of which payments the first payment shall
be made as of the end of the calendar month in which such annuity was awarded and the
last payment shall be at the end of the calendar month in which such judge dies. The first
payment shall include all amounts accrued since the effective date of the award of annuities,
including a pro rata portion of the monthly amount of any fraction of a month elapsing
between the effective date of such annuity and the end of the calendar month in which such
annuity began;

(m) ``board'' means the board of trustees of the Kansas public employees retirement
system;

(n) ``trust'' means an express trust created by any trust instrument, including a will, and
designated by a member to receive benefits and other amounts payable under K.S.A. 20-
2607, 20-2610a and 20-2612, and amendments thereto, instead of a beneficiary. A desig-
nation of a trust shall be filed with the board. If there is a designated trust at the time of
the member's death, all benefits and other amounts payable under K.S.A. 20-2607, 20-2610a
and 20-2612, and amendments thereto, shall be paid to the trust instead of the member's
beneficiary. If no will is admitted to probate within six months after the death of the member
or no trustee qualifies within such six months or if the designated trust fails, for any reason
whatsoever, any benefits and other amounts payable under K.S.A. 20-2607, 20-2610a and
20-2612, and amendments thereto, shall be paid to the member's beneficiary and any pay-
ments so made shall be a full discharge and release to the retirement system for judges from
any further claims;

(o) ``accumulated contributions'' means the sum of all contributions by a member to
the retirement system for judges which are credited to the member's account, with interest
allowed thereon after June 30, 1982;

(p) ``federal internal revenue code'' means the federal internal revenue code of 1954 or
1986, as in effect on July 1, 1998, and as applicable to a governmental plan; and

(q) except as otherwise provided in K.S.A. 20-2601 et seq. and amendments thereto,
words and phrases used in K.S.A. 20-2601 et seq. and amendments thereto shall have the
same meanings ascribed to them as are defined in K.S.A. 74-4902 and amendments thereto.

Sec. 2. K.S.A. 20-2601a is hereby amended to read as follows: 20-2601a. (a) On and
after July 1, 1975, the Kansas judges retirement board established pursuant to K.S.A. 20-
2604 and amendments thereto shall be and is hereby abolished, and on ~~said~~ such date, except
as otherwise provided in this act, all of the powers, duties and functions of said Kansas
judges retirement board, whether in its capacity as that board pursuant to K.S.A. 20-2604
and amendments thereto or in its capacity as the Kansas official court reporters retirement
board pursuant to K.S.A. 20-2704, shall be and are hereby transferred to and conferred and
imposed upon the board of trustees of the Kansas public employees retirement system.

(b) Except as otherwise provided in this act, the board of trustees of the Kansas public
employees retirement system shall be the successor in every way to the powers, duties and
functions of the Kansas judges retirement board, whether in its capacity as that board pur-
suant to K.S.A. 20-2604 and amendments thereto or in its capacity as the Kansas official
court reporters retirement board pursuant to K.S.A. 20-2704, in which the same were vested
prior to July 1, 1975. Every act performed in the exercise of such powers, duties and func-
tions by or under the authority of the board of trustees of the Kansas public employees
retirement system shall be deemed to have the same force and effect as if performed by
the Kansas judges retirement board in which such powers, duties and functions were vested
prior to July 1, 1975.

(c) On and after July 1, 1975, whenever the Kansas judges retirement board, or words
of like effect, is referred to or designated by a statute or contract or other document, such
reference or designation shall be deemed to apply to the board of trustees of the Kansas
public employees retirement system.

(d) On and after July 1, 1975, whenever the Kansas official court reporters retirement
board, or words of like effect, is referred to or designated by a statute or contract or other
document, such reference or designation shall be deemed to apply to the board of trustees
of the Kansas public employees retirement system.

(e) The board of trustees of the Kansas public employees retirement system shall adopt
rules and regulations necessary for the administration of the retirement system for judges
and for the transaction of business consistent with law. All rules or regulations of the Kansas
judges retirement board in existence on July 1, 1975, whether adopted when acting as that
board pursuant to K.S.A. 20-2604 and amendments thereto or when acting as the Kansas
official court reporters retirement board pursuant to K.S.A. 20-2704, shall continue in force
and effect and shall be deemed to be duly adopted rules or regulations of the board of
trustees of the Kansas public employees retirement system, until revised, amended, revoked
or nullified pursuant to law.

(f) All decisions and determinations of the Kansas judges retirement board in effect on
July 1, 1975, whether made when acting as that board pursuant to K.S.A. 20-2604 and
amendments thereto or when acting as the Kansas official court reporters retirement board
pursuant to K.S.A. 20-2704, shall continue in force and effect and shall be deemed to be
decisions and determinations of the board of trustees of the Kansas public employees re-
tirement system, until revised, amended, revoked or nullified pursuant to law.

Sec. 3. K.S.A. 20-2606, as amended by section 17 of 1998 Senate Bill No. 382, is hereby
amended to read as follows: 20-2606. (a) Any judge whose service is terminated prior to
retirement, for any cause other than death, ~~may,~~ upon written request to the board and
after 30 days after such termination, may have returned the total amount of accumulated
contributions which the judge has made to the fund after the retirement system for judges
has a reasonable time to process the application for withdrawal. The return of accumulated
contributions to a judge shall preclude that judge from any benefits under the retirement
system for judges unless and until that judge again serves in such capacity.

(b) Any incumbent judge over 70 years of age with a total service of at least eight years
at the time the judge's present term of office expires, or at the time of retirement if the
judge retires before the end of the judge's present term, shall receive retirement annuities
as provided in K.S.A. 20-2608, 20-2609 and 20-2610, and any amendments thereto, unless
the judge requests the return of accumulated contributions under this section.

(c) In case any judge, who has had such judge's accumulated contributions returned
under this section, serves again in such capacity, such judge may return, subject to the
provisions of section 83 and amendments thereto, the amount refunded under this section
without interest or penalty and regain such judge's original status under the retirement
system for judges.

(d) Subject to the provisions of section 83 and amendments thereto, any member of the
retirement system for judges who was previously a member of the Kansas public employees
retirement system or the Kansas police and firemen's retirement system and who forfeited
service credit under either of those systems by reason of termination of employment and
withdrawal of their contributions to that system, may elect to purchase service credit for
the previously forfeited service credit by means of having employee contributions as pro-
vided in K.S.A. 20-2603 and amendments thereto deducted from such judge's compensation
at an additional rate of contribution, based upon such judge's attained age at the time of
purchase and using actuarial assumptions and tables in use by the retirement system at such
time of purchase for such periods of service. Such additional rate of contribution shall com-
mence at the beginning of the quarter following such election and shall remain in effect until
all of the full quarters of such service have been purchased. Such member may purchase
such service by means of a single lump-sum payment ~~and~~ in lieu of employee contributions
as provided in this subsection. Such service shall be recredited to that system. The amount
of the lump-sum payment shall be determined by the actuary using the member's then
current annual rate of compensation ~~and~~, the actuarial assumptions and tables then currently
in use by that retirement system and the judge's attained age.

Sec. 4. K.S.A. 20-2609 is hereby amended to read as follows: 20-2609. (a) Any judge
who has become permanently physically or mentally disabled and who is not entitled to
retire under K.S.A. 20-2608 and amendments thereto may, upon being found so disabled
by the supreme court, retire under this section, and upon such retirement such judge shall
be entitled to receive an annuity, each monthly payment of which shall be in an amount
equal to 3.5% of the final average salary of the judge, determined as provided in subsection
(b) of K.S.A. 20-2610 and amendments thereto, multiplied by the number of total years of
service, but for any judge who becomes disabled as provided in this section on or after July
1, 1998, such monthly benefits shall be at least ~~25%~~ 50% but shall not exceed 70% of the
final average salary of the judge, determined as provided in subsection (b) of K.S.A. 20-
2610 and amendments thereto.

(b) Any judge, or the conservator of any judge, desiring to retire under the provisions
of this section shall file an application for such retirement with the clerk of the supreme
court, which application shall be in such form and contain such information as the supreme
court shall require. The court may require such judge to be examined by a physician ap-
pointed by the court and may require such other evidence and proof of disability as it deems
necessary to reach a determination as to whether such judge is so permanently disabled. If
the supreme court shall determine that any such judge is so permanently disabled it shall
promptly notify the board and thereupon such judge shall be placed on retirement by the
board and monthly receive the retirement annuity as provided in this section.

(c) Any judge receiving an annuity under the provisions of this section shall be consid-
ered an active judge for the purposes of K.S.A. 20-2608 and amendments thereto and shall,
upon reaching age 65 or upon making application for retirement, have such judge's retire-
ment under this section terminated and such judge shall be placed on retirement under the
provisions of K.S.A. 20-2608 and amendments thereto.

(d) In the event that a judge eligible for a disability annuity authorized by this section
shall be disabled for a period of five years or more immediately preceding retirement, such
judge's final average salary shall be adjusted upon retirement by the actuarial salary as-
sumption rates in existence during such period of disability. Effective July 1, 1993, such
judge's final average salary shall be adjusted upon retirement by 5% for each year of disability
after July 1, 1993, but before July 1, 1998. Effective July 1, 1998, such judge's final average
salary shall be adjusted upon retirement by an amount equal to the lesser of: (1) The
percentage increase in the consumer price index for all urban consumers as published by
the bureau of labor statistics of the United States department of labor minus 1%; or (2) four
percent per annum, measured from the month the disability occurs to the month that is two
months prior to the month of retirement, for each year of disability after July 1, 1998.

(e) The provisions of law in effect on the retirement date of a judge under the retirement
system for judges shall govern the retirement benefit payable to the judge, any joint annu-
itant and any beneficiary.

Sec. 5. K.S.A. 20-2610 is hereby amended to read as follows: 20-2610. (a) (1) A judge
who retires under K.S.A. 20-2608, and amendments thereto, shall be entitled to receive an
annual annuity payable in monthly amounts subject to subsection (b), each ~~monthly payment~~
such annual annuity of which shall be in an amount equal to the total of 5% of the final
average salary of the judge, determined as provided in subsection (b), multiplied by the
number of the judge's years of service up to 10 years, and 3.5% of the final average salary
of the judge, determined as provided in subsection (b), multiplied by the number of the
judge's years of service in excess of 10 years, but such ~~monthly benefits~~ annual annuity shall
not exceed 70% of the final average salary of such judge, determined as provided in sub-
section (b). A judge who retires under K.S.A. 20-2608 and amendments thereto, and who
became a member of the system after June 30, 1987, shall be entitled to receive an annual
annuity payable in monthly amounts subject to subsection (b), each ~~monthly payment~~ such
annual amount of which shall be in an amount equal to the total of 3.5% of the final average
salary of the judge, determined as provided in subsection (b), multiplied by the number of
the judge's years of service, but such ~~monthly benefits~~ annual annuity shall not exceed 70%
of the final average salary of the judge, determined as provided in subsection (b).

(2) For purposes of this subsection, the date of membership for a district magistrate
judge who became a member of the system as provided by K.S.A. 20-2620 and amendments
thereto and who purchased service as provided in subsection (c) of K.S.A. 20-2620 and
amendments thereto shall be the day such district magistrate judge became a district mag-
istrate judge and if such district magistrate judge's membership date as determined in this
subsection is earlier than July 1, 1987, such district magistrate judge shall be entitled to the
5% of final average salary calculation for up to 10 years of service as provided in this
subsection. Any additional cost associated with the provisions of this subsection shall be paid
by such district magistrate judge by means of a single lump-sum payment or equal annual
payments for not to exceed five years. The lump-sum or annual payments shall be determined
by the system's actuary by using the member's final average salary at the time of application,
actuarial assumptions and tables currently in use by the system and the member's attained
age. No participating employer shall pay all or any part of any cost associated with the
provisions of this subsection.

(b) For any judge who retires under K.S.A. 20-2608 or 20-2609, and amendments
thereto, on or after July 1, 1975, the annuity shall be based on the final average salary of
such judge as provided in this subsection. The final average salary of a judge who becomes
permanently physically or mentally disabled and who is retired under K.S.A. 20-2608 or 20-
2609, and amendments thereto, shall be determined as if such judge had retired on the date
such judge became permanently physically or mentally disabled. The final average salary of
a former judge whose service is terminated without retiring and who later retires under
K.S.A. 20-2608, and amendments thereto, shall be determined as if such former judge had
retired at the time such service was terminated.

In the case of judges who retire on or after July 1, 1993, the final average salary shall
mean the average highest annual salary paid to the judge for any three years of the last 10
years of service as a judge immediately preceding retirement or termination of employment,
or if service as a judge is less than three years, then the final average salary shall be the
average annual salary paid to the judge during the full period of service as a judge, or if
service as a judge is less than one year, then the final average salary shall be computed by
multiplying the amount of monthly salary such judge was receiving at the time of retirement
by 12.

(c) The provisions of law in effect on the retirement date of a judge under the retirement
system for judges shall govern the retirement benefit payable to the judge, any joint annu-
itant and any beneficiary.

(d) A judge who retires under K.S.A. 20-2608, and amendments thereto, and who, after
such retirement, again is appointed or elected as a judge, shall have the judge's retirement
annuity suspended as provided in this subsection. Such judge shall become an active member
and make employee contributions to the system and receive service credit for any service
after the date of commencement of service in such position. Upon again retiring, any credited
service such member subsequently accrues shall be added to all previous service and the
retirement annuity shall be recalculated in accordance with the provisions of this section.

Sec. 6. K.S.A. 20-2620, as amended by section 20 of 1998 Senate Bill No. 382, is hereby
amended to read as follows: 20-2620. (a) Except as otherwise provided, each district mag-
istrate judge holding such position on the effective date of this act may become a member
of the retirement system for judges on the first day of the payroll period of the fiscal year
ending June 30, 1994, only by filing with the board of trustees of the Kansas public em-
ployees retirement system on or before the first day of the payroll period of the fiscal year
ending June 30, 1994, a written election to become a member of the system. Failure to file
such written election shall be presumed to be an election not to become a member of the
system. Such election, whether to become a member or not to become a member, shall be
irrevocable. In addition, any such district magistrate judge who makes the election previously
provided in this section, may elect to transfer such district magistrate judge's service credit
from the Kansas public employees retirement system as provided in subsection (e) of K.S.A.
20-2601 and amendments thereto and subsection (c). The date of membership for a district
magistrate judge who became a member of the system as provided in this section and who
purchased service as provided in subsection (c) shall be the day that such district magistrate
judge became a district magistrate judge. Such district magistrate judge shall be subject to
the provisions of subsection (a)(2) of K.S.A. 20-2610 and amendments thereto.

(b) Each person who becomes a district magistrate judge on or after the effective date
of this act shall become a member of the retirement system for judges on the first day such
person holds the position of district magistrate judge.

(c) The board of trustees of the Kansas public employees retirement system shall trans-
fer to the credit of the district magistrate judge under the retirement system for judges such
amounts as may be presently credited to a district magistrate judge's account for contribution
under the Kansas public employees retirement system and an equivalent amount to the
employer's account for contributions for such district magistrate judge whenever an appli-
cation for conversion of service under the Kansas public employees retirement system is
received from a district magistrate judge. Subject to the provisions of section 83 and amend-
ments thereto, any district magistrate judge may purchase such service by electing such
purchase prior to retirement by means of a single lump-sum payment or equal annual
payments for not to exceed five years. The lump-sum or annual payments shall be deter-
mined by the system's actuary by using the member's final average salary at the time of
application, actuarial assumptions and tables currently in use by the system and the mem-
ber's attained age.

Sec. 7. K.S.A. 1997 Supp. 46-2201 is hereby amended to read as follows: 46-2201. (a)
On January 1, 1993, there is hereby created the joint committee on pensions, investments
and benefits which shall be composed of five senators and eight members of the house of
representatives. The five senate members shall be the chairperson of the standing committee
on ways and means of the senate, or a member of such committee appointed by the chair-
person, two members appointed by the president and two members appointed by the mi-
nority leader. The eight representative members shall be the chairperson of the standing
committee on appropriations of the house of representatives, or a member of such com-
mittee appointed by the chairperson, four members appointed by the speaker and three
members appointed by the minority leader.

(b) All members of the joint committee on pensions, investments and benefits shall
serve for terms ending on the first day of the regular legislative session in odd-numbered
years. After June 30 in odd-numbered years, the chairperson shall be one of the represen-
tative members of the joint committee selected by the speaker and the vice-chairperson
shall be one of the senate members selected by the president. After June 30 in even-num-
bered years, the chairperson shall be one of the senate members of the joint committee
selected by the president and the vice-chairperson shall be one of the representative mem-
bers of the joint committee selected by the speaker. The chairperson and vice-chairperson
of the joint committee shall serve in such capacities until July 1 of the ensuing year. The
vice-chairperson shall exercise all of the powers of the chairperson in the absence of the
chairperson.

(c) The joint committee on pensions, investments and benefits shall meet at any time
and at any place within the state on call of the chairperson. Members of the joint committee
shall receive compensation and travel expenses and subsistence expenses or allowances as
provided in K.S.A. 75-3212 and amendments thereto when attending meetings of such
committee authorized by the legislative coordinating council.

(d) In accordance with K.S.A. 46-1204 and amendments thereto, the legislative coor-
dinating council may provide for such professional services as may be requested by the joint
committee on pensions, investments and benefits.

(e) The joint committee on pensions, investments and benefits may introduce such
legislation as deemed necessary in performing such committee's functions.

(f) The joint committee on pensions, investments and benefits shall:

(1) Monitor, review and make recommendations regarding investment policies and ob-
jectives formulated by the board of trustees of the Kansas public employees retirement
system;

(2) review and make recommendations relating to benefits for members under the Kan-
sas public employees retirement system;

(3) consider and make recommendations to the standing committee of the senate spec-
ified by the president of the senate relating to the confirmation of members of the board
of trustees of the Kansas public employees retirement system appointed pursuant to K.S.A.
74-4905 and amendments thereto. On and after July 1, 1993, the information provided by
the Kansas bureau of investigation or other criminal justice agency pursuant to subsection
(h) of K.S.A. 74-4905 and amendments thereto relating to the confirmation of members of
the board to the standing committee of the senate specified by the president shall be for-
warded by the Kansas bureau of investigation or such other criminal justice agency to such
joint committee for such joint committee's consideration and other than conviction data,
shall be confidential and shall not be disclosed except to members and employees of the
joint committee as necessary to determine qualifications of such member. The committee,
in accordance with K.S.A. 75-4319 and amendments thereto shall recess for a closed or
executive meeting to receive and discuss information received by the committee pursuant
to this subsection; ~~and~~

(4) review and make recommendations to the legislature by the first day of legislative
session commencing in 1997 relating to the implementation of a permanent policy regarding
adjustments in retirement benefit payments to retirants and disabled members. Such rec-
ommendations should include a review of cost-of-living adjustments, the shared earnings
proposal presented to the 1996 legislature and other mechanisms for prefunding adjust-
ments in retirement benefit payments to retirants and disabled members as an alternative
to annual cost-of-living adjustments. In conducting such review the committee may utilize
legislative staff, Kansas public employees retirement system staff, the Kansas public em-
ployees retirement system actuary and other consultants. Any recommendations shall in-
clude actuarially based cost estimates, including an assessment of the impact on the Kansas
public employees retirement system fund's unfunded actuarial liability; and

(5) review and make recommendations relating to inclusion of city and county cor-
rectional officers as eligible members of the Kansas police and firemen's retirement system.

Sec. 8. K.S.A. 72-5501, as amended by section 22 of 1998 Senate Bill No. 382, is hereby
amended to read as follows: 72-5501. As used in this act, unless the context otherwise
requires:

(a) ``Retirement system'' means the state school retirement system;

(b) ``board'' means the board of trustees of the Kansas public employees retirement
system;

(c) ``school year'' means either the twelve-month period beginning on September first,
or the legal school term during such period. In case of doubt the board shall decide what
constitutes a school year. The board shall not give credit for a school year that represents
less than 140 days, except that the board may give credit for a school year if not less than
80 days of actual service has been rendered and if continuance in school service was pre-
vented by illness or other emergency beyond the control of the person entitled to such
credit. No person shall receive credit for more than one school year during any twelve-
month period beginning on September 1. The board shall give credit for 1/2 of a school year
for 1/2 school year of continuous full-time service;

(d) ``school employees'' means persons who have performed or who shall hereafter per-
form school services as classroom teachers, administrators, supervisors, librarians, nurses,
clerks, janitors or in any other full-time capacity in the public schools, area vocational-
technical schools or community junior colleges of the state of Kansas and who are citizens
of the United States and school employees shall include: (1) Persons who have performed
service as a county superintendent of public instruction or as an employee appointed by and
under the supervision of a county superintendent; (2) persons who have performed service
as a state superintendent of public instruction or as an employee appointed by and under
supervision of a state superintendent; (3) persons who have performed services as an em-
ployee appointed by the former state board for vocational education, except that prior to
the time of accepting such employment by such county superintendent, state superintendent
or state board for vocational education such employees had performed school service in
Kansas as a teacher, principal, supervisor, or superintendent; (4) persons who are employees
appointed by and under the supervision of the constitutional state board of education, in-
cluding those employees transferred to the state department of education at its inception
in January of 1969, and who prior to the time of accepting such employment by the state
board of education had performed school service in Kansas as a teacher, principal, super-
visor, or superintendent; (5) the commissioner of education if such commissioner exercises
an irrevocable option to be covered by the state school retirement system in lieu of being
covered by the Kansas public employees retirement system, which option shall be exercised
by written notice of the commissioner of education at the time of appointment. Such notice
shall be directed to the state school retirement board and the board of trustees of the Kansas
public employees retirement system; (6) all instructional employees for the school for the
blind and such employees shall be excluded from participation in any other state retirement
system; and (7) teachers and supervisors of instruction at the state institutions under the
management of the director of penal institutions and those under the management of the
state board of social welfare which provide regular classroom instruction for their inmates
or patients if such instructional personnel have valid certificates issued by the state board
of education, except that the provisions of this subsection shall not include such employees
who have elected or shall elect, irrevocably, at the time of employment by the institution to
participate in the Kansas public employees retirement system. The term ``school employees''
shall not include any employee while a member of a separate retirement system operated
by any board of education but if any such employee at any time becomes eligible to partic-
ipate in the state retirement as provided by this act, the years such person served in a school
system in Kansas which maintains a separate retirement system shall be included in deter-
mining years of service of such person under this act. An employee performing service in a
school system maintaining its own separate retirement system in Kansas may qualify for
service credit in the state system by discontinuing membership in such separate retirement
system prior to the time of retirement and accepting a position which is covered by the state
retirement system, and continuing in such service for at least one school year. Subject to
the provisions of section 83 and amendments thereto, such employee shall contribute to the
state retirement system an amount of money equal to that which was deducted from such
employee's salary for services rendered after September 1, 1941, in the city maintaining its
own retirement system and this amount shall be credited to the savings account of the
employee. If such employee was for any reason excluded from participation in the separate
retirement system, the board shall give credit for such nonmember service in the public
schools in the city maintaining a separate retirement system without the required transfer
of funds. After September 1, 1971, no person shall be deemed a school employee for the
purposes of this act;

(e) ``school service'' means: (1) Service performed as a school employee prior to Sep-
tember 1, 1941, if such years of service include at least six months during the years 1938-
39 or 1939-40 or 1940-41; service performed by any employee who was not in school service
in any of the school years from 1938 to 1941, but who reentered school service after Sep-
tember 1, 1941, and continued in such service for at least five years; all service prior to
September 1, 1941, of any annuitant who retired prior to September 1, 1961, and who was
granted a service annuity for one or more years as a contributing member of the school
retirement system; all service prior to September 1, 1941, of any employee who served for
at least six months during one of the qualifying years from 1938 to 1941 in a school system
maintaining its own separate retirement system in Kansas, if such employee has not quali-
fied, nor will in the future qualify, for retirement benefits under the separate retirement
system; all service as a school employee, including out-of-state service as a school employee,
for a period of 12 10 or more years prior to September 1, 1938, except that service annuities
paid by the state of Kansas to such school employees shall not include such out-of-state
service as a school employee, unless otherwise provided by law; (2) service as a school
employee after September 1, 1941, as a contributing member of the school retirement
system. No service credit shall be granted to a school employee who established or shall
hereafter establish membership later than September 1, 1941, for a period of time between
September 1, 1941, and the date of becoming a contributing member of the retirement
system. School service shall include only full-time employees, except that 1/2 year of credit
shall be given to instructional employees who perform school service on at least a 1/2 time
basis throughout a school year. No school service credit shall be given in fractional units of
less than 1/2 year. The board may grant service credit to employees, who were performing
school service at the time of their induction into the armed forces of the United States,
equal to the time spent in the armed forces between September 1, 1940, and September 1,
1947, and between June 25, 1950, and July 27, 1953 and between August 5, 1964, and
August 15, 1973, but no such service credit shall be granted for a period of more than five
years spent in the armed forces between September 1, 1940, and September 1, 1947, or for
a period of more than two years spent in the armed forces between June 25, 1950, and July
27, 1953 or for a period of more than two years spent in the armed forces between August
5, 1964 and August 15, 1973. In the event the employee served during the periods between
September 1, 1940, and September 1, 1947, and between June 25, 1950, and July 27, 1953,
such employee shall be granted a service credit for the actual time spent in the armed forces
between June 25, 1950, and July 27, 1953, nor shall such service credit be granted to any
employee unless such employee shall reenter school service and continue in such service
for at least one school year. The board may grant service credit to an employee who was
performing school service prior to the time of becoming employed as a veterans' instruc-
tional on-the-farm training instructor equal to the time spent as such instructor between
the dates of September 1, 1946, and September 1, 1961. The board may grant service credit
to an employee who prior to performing school service was a faculty member of the Kansas
vocational school at Topeka, known part of the time as the Kansas technical institute, which
operated under the Kansas state board of regents prior to 1956 equal to the time spent as
instructor at such school. In case of doubt the board shall decide what constitutes school
service; and (3) service for which credit must be given under federal law, including, but not
limited to, when applicable, the uniformed services employment and reemployment rights
act of 1994, as in effect on July 1, 1998;

(f) ``school annuitant'' means any person who is entitled to receive a school annuity;

(g) ``school annuity'' means the monthly payments due to any school annuitant. Such
payments shall continue for life, and be paid in monthly installments;

(h) ``service annuity'' means that part of the school annuity which is based upon the
service record of the person concerned, and which is paid by the state;

(i) ``savings annuity'' means that part of the school annuity which results from the ac-
cumulated contributions of the school employee and interest thereon less the proportionate
share of the expense of the administration of this act;

(j) ``disability annuity'' means a school annuity granted to a school employee who suffers
such physical or mental disability as to be unable to perform school service;

(k) ``standard annuity'' means the school annuity which is granted to a school employee
at the age of 65 years, as prescribed by this act. The standard annuity shall be used as the
basis in computing actuarially equivalent annuities granted at ages prior to 65 years. When-
ever the amount of any benefit is to be determined on the basis of actuarial assumptions,
the assumption shall be specified in a way that precludes employer discretion;

(l) ``service record'' means the individual record kept by the board for each school
employee. It shall show the number of school years of school service, the salary or wages
earned, the date of birth, and such other data as the board may require;

(m) ``age'' and ``attained age'' shall be computed as of September 1 of the calendar year
under consideration;

(n) ``deductions'' means the amounts withheld, as provided in this act, from warrants
issued in payment for school services;

(o) ``actuarial computation'' means computation in accordance with some standard ac-
tuarial table. The board shall determine which one of the standard actuarial tables shall be
used. Whenever the amount of any benefit is to be determined on the basis of actuarial
assumptions, the assumptions shall be specified in a way that precludes employer discretion;
and

(p) ``compensation'' means the same as provided in section 83 and amendments thereto
for purposes of nondiscrimination testing pursuant to the federal internal revenue code of
1986, as in effect on July 1, 1998.

Sec. 9. K.S.A. 1997 Supp. 74-4902, as amended by section 26 of 1998 Senate Bill No.
382, is hereby amended to read as follows: 74-4902. As used in articles 49 and 49a of chapter
74 and amendments thereto, unless otherwise provided or the context otherwise requires:

(1) ``Accumulated contributions'' means the sum of all contributions by a member to
the system which are credited to the member's account, with interest allowed thereon;

(2) ``acts'' means ~~K.S.A. 74-4901 to 74-4929, inclusive,~~ the provisions of articles 49 and
49a of the Kansas Statutes Annotated and amendments thereto;

(3) ``actuarial equivalent'' means an annuity or benefit of equal value to the accumulated
contributions, annuity or benefit, when computed upon the basis of the actuarial tables in
use by the system. Whenever the amount of any benefit is to be determined on the basis of
actuarial assumptions, the assumptions shall be specified in a way that precludes employer
discretion;

(4) ``actuarial tables'' means the actuarial tables approved and in use by the board at
any given time;

(5) ``actuary'' means the actuary or firm of actuaries employed or retained by the board
at any given time;

(6) ``agent'' means the individual designated by each participating employer through
whom system transactions and communication are directed;

(7) ``beneficiary'' means any natural person or persons or estate named by a member to
receive any benefits as provided for by this act. Designations of beneficiaries by a member
who is a member of more than one retirement system made on or after July 1, 1987, shall
be the basis of any benefits payable under all systems unless otherwise provided by law.
Except as otherwise provided by subsection (33) of this section, if there is no named ben-
eficiary living at time of member's death, any benefits provided for by this act shall be paid
to: (A) The member's surviving spouse; (B) the member's dependent child or children; (C)
the member's dependent parent or parents; (D) the member's nondependent child or chil-
dren; (E) the member's nondependent parent or parents; (F) the estate of the deceased
member; in the order of preference as specified in this subsection. ~~Any payment made to~~
~~a named beneficiary shall be a full discharge and release to the system from any further~~
~~claims. Any payment made to a beneficiary as provided in clauses (A), (B), (C), (D), (E) or~~
~~(F) of this subsection, as determined by the board, shall be a full discharge and release to~~
~~the system from any further claims. Whenever any payment is payable to more than one~~
~~beneficiary such payment shall be made to such beneficiaries jointly. Any benefits payable~~
~~to a beneficiary or beneficiaries who are minor children or incompetent persons shall be~~
~~made in the name of the beneficiary or beneficiaries and delivered to the lawfully appointed~~
~~conservator of such beneficiaries who was nominated by will or as otherwise provided by~~
~~law, except that in those cases where the benefit involves only the payment of the member's~~
~~accumulated contributions with interest as provided by this act in an amount not to exceed~~
~~$500, the board is hereby authorized in its discretion without the appointment of a conser-~~
~~vator or the giving of a bond to pay such amount as is due to the minor or minors themselves,~~
~~any payment so made shall be a full discharge and release to the system from any further~~
~~claims~~;

(8) ``board of trustees,'' ``board'' or ``trustees'' means the managing body of the system
which is known as the Kansas public employees retirement system board of trustees;

(9) ``compensation'' means, except as otherwise provided, all salary, wages and other
remuneration payable to a member for personal services performed for a participating em-
ployer, including maintenance or any allowance in lieu thereof provided a member as part
of compensation, but not including reimbursement for travel or moving expenses or on and
after July 1, 1994, payment pursuant to an early retirement incentive program made prior
to the retirement of the member. Beginning with the employer's fiscal year which begins
in calendar year 1991 or for employers other than the state of Kansas, beginning with the
fiscal year which begins in calendar year 1992, when the compensation of a member who
remains in substantially the same position during any two consecutive years of participating
service used in calculating final average salary is increased by an amount which exceeds
15%, then the amount of such increase which exceeds 15% shall not be included in com-
pensation, except that (A) any amount of compensation for accumulated sick leave or va-
cation or annual leave paid to the member, (B) any increase in compensation for any member
due to a reclassification or reallocation of such member's position or a reassignment of such
member's job classification to a higher range or level and (C) any increase in compensation
as provided in any contract entered into prior to January 1, 1991, and still in force on the
effective date of this act, pursuant to an early retirement incentive program as provided in
K.S.A. 72-5395 et seq. and amendments thereto, shall be included in the amount of com-
pensation of such member used in determining such member's final average salary and shall
not be subject to the 15% limitation provided in this subsection. Any contributions by such
member on the amount of such increase which exceeds 15% which is not included in
compensation shall be returned to the member. Unless otherwise provided by law, beginning
with the employer's fiscal year coinciding with or following July 1, 1985, compensation shall
include any amounts for tax sheltered annuities or deferred compensation plans. Beginning
with the employer's fiscal year which begins in calendar year 1991, compensation shall
include amounts under sections 403b, 457 and 125 of the federal internal revenue code of
1986 and, as the board deems appropriate, any other section of the federal internal revenue
code of 1986 which defers or excludes amounts from inclusion in income. For purposes of
applying limits under the federal internal revenue code ``compensation'' shall have the mean-
ing as provided in section 83 and amendments thereto;

(10) ``credited service'' means the sum of participating service and prior service and in
no event shall credited service include any service which is credited under another retire-
ment plan authorized under any law of this state;

(11) ``dependent'' means a parent or child of a member who is dependent upon the
member for at least 1/2 of such parent or child's support;

(12) ``effective date'' means the date upon which the system becomes effective by op-
eration of law;

(13) ``eligible employer'' means the state of Kansas, and any county, city, township,
special district or any instrumentality of any one or several of the aforementioned or any
noncommercial public television or radio station located in this state which receives state
funds allocated by the Kansas public broadcasting commission whose employees are covered
by social security. If a class or several classes of employees of any above defined employer
are not covered by social security, such employer shall be deemed an eligible employer only
with respect to such class or those classes of employees who are covered by social security;

(14) ``employee'' means any appointed or elective officer or employee of a participating
employer whose employment is not seasonal or temporary and whose employment requires
at least 1,000 hours of work per year, but not including: (A) ~~Any person covered by or~~
~~eligible for or who will become eligible for a retirement annuity under the provisions of~~
~~K.S.A. 74-4925 and amendments thereto except as otherwise specifically provided in sub-~~
~~section (3) of K.S.A. 74-4925 and amendments thereto and this subsection; (B)~~ Any em-
ployee who is a contributing member of the United States civil service retirement system;
~~(C) any employee of an eligible employer who is a participant in public service employment~~
~~under title II and title VI of the federal comprehensive employment and training act of~~
~~1973; (D)~~ (B) any employee who is a contributing member of the federal employees retire-
ment system; (C) any employee who is a leased employee of a participating employer.
``Leased employee'' means the same as provided in section 414 of the federal internal rev-
enue code; ~~(E)~~ and (D) any employee or class of employees specifically exempted by law.
After June 30, 1975, no person who is otherwise eligible for membership in the Kansas
public employees retirement system shall be barred from such membership by reason of
coverage by, eligibility for or future eligibility for a retirement annuity under the provisions
of K.S.A. 74-4925 and amendments thereto, except that no person shall receive service
credit under the Kansas public employees retirement system for any period of service for
which benefits accrue or are granted under a retirement annuity plan under the provisions
of K.S.A. 74-4925 and amendments thereto. After June 30, 1982, no person who is otherwise
eligible for membership in the Kansas public employees retirement system shall be barred
from such membership by reason of coverage by, eligibility for or future eligibility for any
benefit under another retirement plan authorized under any law of this state, except that
no such person shall receive service credit under the Kansas public employees retirement
system for any period of service for which any benefit accrues or is granted under any such
retirement plan. Employee shall include persons who are in training at or employed by, or
both, a sheltered workshop for the blind operated by the secretary of social and rehabilitation
services. The entry date for such persons shall be the beginning of the first pay period of
the fiscal year commencing in calendar year 1986. Such persons shall be granted prior
service credit in accordance with K.S.A. 74-4913 and amendments thereto. However, such
persons classified as home industry employees shall not be covered by the retirement system.
Employees shall include any member of a board of county commissioners of any county and
any council member or commissioner of a city whose compensation is equal to or exceeds
$5,000 per year;

(15) ``entry date'' means the date as of which an eligible employer joins the system. The
first entry date pursuant to this act is January 1, 1962;

(16) ``executive secretary'' means the managing officer of the system employed by the
board under this act;

(17) ``final average salary'' means in the case of a member who retires prior to January
1, 1977, and in the case of a member who retires after January 1, 1977, and who has less
than five years of participating service after January 1, 1967, the average highest annual
compensation paid to such member for any five years of the last 10 years of participating
service immediately preceding retirement or termination of employment, or in the case of
a member who retires on or after January 1, 1977, and who has five or more years of
participating service after January 1, 1967, the average highest annual compensation paid
to such member on or after January 1, 1967, for any five years of participating service
preceding retirement or termination of employment, or, in any case, if participating service
is less than five years, then the average annual compensation paid to the member during
the full period of participating service, or, in any case, if the member has less than one
calendar year of participating service such member's final average salary shall be computed
by multiplying such member's highest monthly salary received in that year by 12; in the
case of a member who became a member under subsection (3) of K.S.A. 74-4925 and
amendments thereto, or who became a member with a participating employer as defined
in subsection (3) of K.S.A. 74-4931 and amendments thereto and who elects to have com-
pensation paid in other than 12 equal installments, such compensation shall be annualized
as if the member had elected to receive 12 equal installments for any such periods preceding
retirement; in the case of a member who retires after July 1, 1987, the average highest
annual compensation paid to such member for any four years of participating service pre-
ceding retirement or termination of employment; in the case of a member who retires on
or after July 1, 1993, who was first hired as an employee, as defined in subsection (14) of
K.S.A. 74-4902 and amendments thereto, prior to July 1, 1993, the average highest annual
compensation, as defined in subsection (9), paid to such member for any four years of
participating service preceding retirement or termination of employment or the average
highest annual salary, as defined in subsection (34), paid to such member for any three years
of participating service preceding retirement or termination of employment, whichever is
greater; and in the case of a member who retires on or after July 1, 1993, and who is first
hired as an employee, as defined in subsection (14) of K.S.A. 74-4902 and amendments
thereto, on or after July 1, 1993, the average highest annual salary, as defined in subsection
(34), paid to such member for any three years of participating service preceding retirement
or termination of employment. Final average salary shall not include any purchase of par-
ticipating service credit by a member as provided in subsection (2) of K.S.A. 74-4919h and
amendments thereto which is completed within five years of retirement. For any application
to purchase or repurchase service credit for a certain period of service as provided by law
received by the system after May 17, 1994, for any member who will have contributions
deducted from such member's compensation at a percentage rate equal to two or three
times the employee's rate of contribution or will begin paying to the system a lump-sum
amount for such member's purchase or repurchase and such deductions or lump-sum pay-
ment commences after the commencement of the first payroll period in the third quarter,
``final average salary'' shall not include any amount of compensation or salary which is based
on such member's purchase or repurchase. Any application to purchase or repurchase mul-
tiple periods of service shall be treated as multiple applications. For purposes of this sub-
section, the date that such member is first hired as an employee for members who are
employees of employers that elected to participate in the system on or after January 1, 1994,
shall be the date that such employee's employer elected to participate in the system. In the
case of any former member who was eligible for assistance pursuant to K.S.A. 74-4925 and
amendments thereto prior to July 1, 1998, for the purpose of calculating final average salary
of such member, such member's final average salary shall be based on such member's salary
while a member of the system or while eligible for assistance pursuant to K.S.A. 74-4925
and amendments thereto, whichever is greater;

(18) ``fiscal year'' means, for the Kansas public employees retirement system, the period
commencing July 1 of any year and ending June 30 of the next;

(19) ``Kansas public employees retirement fund'' means the fund created by this act for
payment of expenses and benefits under the system and referred to as the fund;

(20) ``leave of absence'' means a period of absence from employment without pay, au-
thorized and approved by the employer, and which after the effective date does not exceed
one year;

(21) ``member'' means an eligible employee who is in the system and is making the
required employee contributions~~, or~~; any former employee who has made the required
contributions to the system and has not received a refund if such member is within five
years of termination of employment with a participating employer; or any former employee
who has made the required contributions to the system, has not yet received a refund and
has been granted a vested benefit;

(22) ``military service'' means service in the uniformed forces of the United States, for
which retirement benefit credit must be given under the provisions of USERRA or service
in the armed forces of the United States or in the commissioned corps of the United ~~State~~
States public health service, which service is immediately preceded by a period of employ-
ment as an employee or by the entering into of an employment contract with a participating
employer and is followed by return to employment as an employee with the same or another
participating employer within 12 months immediately following discharge from such military
service, except that if the board determines that such return within 12 months was made
impossible by reason of a service-connected disability, the period within which the employee
must return to employment with a participating employer shall be extended not more than
two years from the date of discharge or separation from military service;

(23) ``normal retirement date'' means the date on or after which a member may retire
with full retirement benefits pursuant to K.S.A. 74-4914 and amendments thereto;

(24) ``participating employer'' means an eligible employer who has agreed to make con-
tributions to the system on behalf of its employees;

(25) ``participating service'' means the period of employment after the entry date for
which credit is granted a member;

(26) ``prior service'' means the period of employment of a member prior to ~~such mem-~~
~~ber's~~ the entry date for which credit is granted a member under this act;

(27) ``prior service annual salary'' means the highest annual salary, not including any
amounts received as payment for overtime or as reimbursement for travel or moving ex-
pense, received for personal services by the member from the current employer in any one
of the three calendar years immediately preceding January 1, 1962, or the entry date of the
employer, whichever is later, except that if a member entered the employment of the state
during the calendar year 1961, the prior service annual salary shall be computed by multi-
plying such member's highest monthly salary received in that year by 12;

(28) ``retirant'' means a member who has retired under this system;

(29) ``retirement benefit'' means a monthly income or the actuarial equivalent thereof
paid in such manner as specified by the member pursuant to this act or as otherwise allowed
to be paid at the discretion of the board, with benefits accruing from the first day of the
month coinciding with or following retirement and ending on the last day of the month in
which death occurs. Upon proper identification a surviving spouse may negotiate the warrant
issued in the name of the retirant;

(30) ``retirement system'' or ``system'' means the Kansas public employees retirement
system as established by this act and as it may be amended;

(31) ``social security'' means the old age, survivors and disability insurance section of
the federal social security act;

(32) ``total disability'' means a physical or mental disability which prevents the member
from engaging, for remuneration or profit, in any occupation for which the member is
reasonably suited by education, training or experience;

(33) ``trust'' means an express trust, created by a trust instrument, including a will,
designated by a member to receive payment of the insured death benefit under K.S.A.
74-4927 and amendments thereto and payment of the member's accumulated contributions
under subsection (1) of K.S.A. 74-4916 and amendments thereto. A designation of a trust
shall be filed with the board. If there is a designated trust at the time of the member's
death, the insured death benefit for the member under K.S.A. 74-4927 and amendments
thereto and the member's accumulated contributions under subsection (1) of K.S.A. 74-
4916 and amendments thereto shall be paid to the trust in lieu of the member's beneficiary.
If no will is admitted to probate within six months after the death of the member or no
trustee qualifies within such six months or if the designated trust fails, for any reason what-
soever, the insured death benefit under K.S.A. 74-4927 and amendments thereto and the
member's accumulated contributions under subsection (1) of K.S.A. 74-4916 and amend-
ments thereto shall be paid in accordance with the provisions of subsection (7) of this section
as in other cases where there is no named beneficiary living at the time of the member's
death and any payments so made shall be a full discharge and release to the system from
any further claims;

(34) ``salary'' means all salary and wages payable to a member for personal services
performed for a participating employer, including maintenance or any allowance in lieu
thereof provided a member as part of salary. Salary shall not include reimbursement for
travel or moving expenses, payment for accumulated sick leave or vacation or annual leave,
severance pay or any other payments to the member determined by the board to not be
payments for personal services performed for a participating employer constituting salary
or on and after July 1, 1994, payment pursuant to an early retirement incentive program
made prior to the retirement of the member. When the salary of a member who remains
in substantially the same position during any two consecutive years of participating service
used in calculating final average salary is increased by an amount which exceeds 15%, then
the amount of such increase which exceeds 15% shall not be included in salary. Any con-
tributions by such member on the amount of such increase which exceeds 15% which is not
included in compensation shall be returned to the member. Unless otherwise provided by
law, salary shall include any amounts for tax sheltered annuities or deferred compensation
plans. Salary shall include amounts under sections 403b, 457 and 125 of the federal internal
revenue code of 1986 and, as the board deems appropriate, any other section of the federal
internal revenue code of 1986 which defers or excludes amounts from inclusion in income.
For purposes of applying limits under the federal internal revenue code ``salary'' shall have
the meaning as provided in section 83 and amendments thereto. In any case, if participating
service is less than three years, then the average annual salary paid to the member during
the full period of participating service, or, in any case, if the member has less than one
calendar year of participating service such member's final average salary shall be computed
by multiplying such member's highest monthly salary received in that year by 12;

(35) ``federal internal revenue code'' means the federal internal revenue code of 1954
or 1986, as in effect on July 1, 1998, and as applicable to a governmental plan; and

(36) ``USERRA'' means the federal uniformed services employment and reemployment
rights act of 1994 as in effect on July 1, 1998.

Sec. 10. K.S.A. 1997 Supp. 74-4904 is hereby amended to read as follows: 74-4904. (1)
The system may sue and be sued in its official name, but its trustees, officers, employees
and agents shall not be personally liable for acts of the system unless such person acted with
willful, wanton or fraudulent misconduct or intentionally tortious conduct. Any agreement
in settlement of litigation involving the system and the investment of moneys of the fund is
a public record as provided in K.S.A. 45-215 et seq. and amendments thereto and subject
to the provisions of that act. The service of all legal process and of all notices which may be
required to be in writing, whether legal proceedings or otherwise, shall be had on the
executive secretary at such executive secretary's office. All actions or proceedings directly
or indirectly against the system shall be brought in Shawnee county.

(2) Any person aggrieved by any order or decision of the board made without a hearing,
may, within 30 days after notice of the order or decision of the board make written request
to the board for a hearing thereon. The board shall hear such party or parties in accordance
with the provisions of the Kansas administrative procedure act at its next regular meeting
or at a special meeting within 60 days after receipt of such request. For the purpose of any
hearing under this section, the board may appoint one or more presiding officers. Any such
presiding officer shall be a member of the board or, an employee of the board or any other
person designated by the board to serve as such presiding officer. Any such appointment
shall apply to a particular hearing or to a set or class of hearings as specified by the board
in making such appointment. The board shall review an initial order resulting from a hearing
under this section. Any member of the board who serves as a presiding officer shall be
reimbursed for actual and necessary expenses and shall receive compensation in an amount
fixed by the board not to exceed the per diem compensation allowable for members of the
board. The board is hereby authorized to enter into a contract with any other person des-
ignated by the board to serve as a presiding officer who is not a member or employee of the
board and to provide for reimbursement for actual and necessary expenses and compensation
for such person serving as a presiding officer.

Sec. 11. K.S.A. 1997 Supp. 74-4905 is hereby amended to read as follows: 74-4905. (a)
On July 1, 1993, the board of trustees of the Kansas public employees retirement system,
as such board existed on June 30, 1993, is hereby abolished. On July 1, 1993, there is hereby
established a new board of trustees of the Kansas public employees retirement system. Such
board established on July 1, 1993, shall consist of nine members, as follows:

(1) Six appointed members, four appointed by the governor subject to confirmation by
the senate as provided in K.S.A. 75-4315b and amendments thereto, one appointed by the
president of the senate and one appointed by the speaker of the house of representatives.
Except as provided by K.S.A. ~~1996~~ 1997 Supp. 46-2601, no person appointed to the board
whose appointment is subject to confirmation, shall exercise any power, duty or function as
a member of the board until confirmed by the senate. No more than two members of the
board whose appointment is subject to confirmation shall be from the same political party;

(2) two retirement system members elected by the members and retirants of the system
as provided in subsection (12) of K.S.A. 74-4909 and amendments thereto. As provided in
this subsection, only active and retired members of the system shall be eligible to be elected
to the board and only active and retired members of the system shall be eligible to elect
the two retirement system members pursuant to this subsection. Inactive members shall
not be eligible to be elected to the board nor to elect the two retirement system members
elected pursuant to this subsection. If a member elected to the board as provided in this
subsection becomes inactive, such member is disqualified from service on the board and such
member's board position shall be vacant and such vacancy shall be filled as provided in
subsection (b)(1). Of the two retirement system members elected pursuant to this subsec-
tion, one shall be a member of the retirement system who is in school employment as
provided in K.S.A. 74-4931 et seq. and amendments thereto and one shall be a member of
the retirement system other than a member who is in school employment. For purposes of
this subsection, retirement system means the Kansas public employees retirement system,
the Kansas police and firemen's retirement system and the retirement system for judges;
and

(3) the state treasurer.

(b) (1) Except as provided by this paragraph and paragraph (2), all members of the
board as provided in subsection (a)(1) and (a)(2) shall serve four-year terms, except that of
the members first appointed by the governor, two shall be appointed for two-year terms
and the member appointed by the speaker of the house of representatives shall be appointed
for a two-year term. The governor shall designate the term for which each of the members
first appointed shall serve. All members appointed to fill vacancies in the membership of
the board and all members appointed to succeed members appointed to membership on
the board shall be appointed in like manner as that provided for the original appointment
of the member succeeded. All members appointed to fill vacancies of a member of the
board appointed by the governor, the president of the senate or the speaker of the house
of representatives shall be appointed to fill the unexpired term of such member. All vacancies
on the board by a member elected by the members and retirants of the system shall be
filled by the board as provided by rules and regulations adopted as provided in subsection
(12) of K.S.A. 74-4909 and amendments thereto.

(2) Except as provided in K.S.A. ~~1996~~ 1997 Supp. 46-2601, no person appointed to the
board by the governor shall exercise any power, duty or function as a member of the board
until confirmed by the senate. The terms of members appointed by the governor 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 board shall elect a chairperson of the board at the first regular meeting held on
or after July 1, 1993, and at each annual meeting thereafter from the members of the board.
The chairperson shall preside over meetings of the board and perform such other duties as
required by the board.

(d) The chairperson shall appoint another board member as vice-chairperson, and the
vice-chairperson shall perform the duties of chairperson in the absence of the chairperson
or upon the chairperson's inability or refusal to act.

(e) The six members appointed pursuant to subsection (a)(1) shall have demonstrated
experience in the financial affairs of a public or private organization or entity which employs
100 or more employees or had at least five years' experience in the field of investment
management or analysis, actuarial analysis or administration of an employee benefit plan.

(f) No person shall serve on the board if such person has knowingly acquired a sub-
stantial interest in any nonpublicly traded investment made with moneys of the fund. Any
such person who knowingly acquires such an interest shall vacate such member's position
on the board and shall be guilty of a class A misdemeanor. For purposes of this subsection,
``substantial interest'' means any of the following:

(1) If an individual or an individual's spouse, either individually or collectively, has
owned within the preceding 12 months a legal or equitable interest exceeding $5,000 or 5%
of any business, whichever is less, the individual has a substantial interest in that business.

(2) If an individual or an individual's spouse, either individually or collectively, has re-
ceived during the preceding calendar year compensation which is or will be required to be
included as taxable income on federal income tax returns of the individual and spouse in an
aggregate amount of $2,000 from any business or combination of businesses, the individual
has a substantial interest in that business or combination of businesses.

(3) If an individual or an individual's spouse holds the position of officer, director,
associate, partner or proprietor of any business, the individual has a substantial interest in
that business, irrespective of the amount of compensation received by the individual or
individual's spouse.

(4) If an individual or an individual's spouse receives compensation which is a portion
or percentage of each separate fee or commission paid to a business or combination of
businesses, the individual has a substantial interest in any client or customer who pays fees
or commissions to the business or combination of businesses from which fees or commissions
the individual or the individual's spouse, either individually or collectively, received an ag-
gregate of $2,000 or more in the preceding calendar year.

(5) If an individual or an individual's spouse has received a loan from or received fi-
nancing from any bank, savings and loan, credit union or any other financial institution in
an amount which exceeds $2,000, the individual has a substantial interest in that financial
institution.

As used in this subsection, ``client or customer'' means a business or combination of
businesses.

Any person who serves on the board shall fully disclose any substantial interest that such
person has in any publicly traded investment made with moneys of the fund.

(g) No person who serves on the board shall be employed for a period of two years
commencing on the date the person no longer serves on the board and ending two years
after such date with any organization in which moneys of the fund were invested, except
that the employment limitation contained in this subsection shall not apply if such person's
employment is with an organization whose stock or other evidences of ownership are traded
on the public stock or bond exchanges.

(h) All members of the board named, appointed or elected to the board shall be subject
to an investigation by the Kansas bureau of investigation or other criminal justice agencies.
Information to be obtained during such investigation shall include criminal history record
information, including arrest and conviction data, criminal intelligence information and in-
formation relating to criminal and background investigations as necessary to determine qual-
ifications of such member. Such information shall be forwarded to the senate committee
specified by the president of the senate for such committee's consideration and other than
conviction data, shall be confidential and shall not be disclosed except to members and
employees of the committee as necessary to determine qualifications of such member. The
committee, in accordance with K.S.A. 75-4319 and amendments thereto shall recess for a
closed or executive meeting to receive and discuss information received by the committee
pursuant to this subsection.

(i) All of the powers, duties and functions of the board of trustees of the Kansas public
employees retirement system as such board existed prior to July 1, 1993, are hereby trans-
ferred to and conferred and imposed upon the board of trustees established pursuant to
this act. The board of trustees of the Kansas public employees retirement system established
pursuant to this act shall be the successor in every way of the powers, duties and functions
of the board of trustees existing prior to July 1, 1993, in which the same were vested prior
to July 1, 1993.

Sec. 12. K.S.A. 1997 Supp. 74-4907 is hereby amended to read as follows: 74-4907. (1)
The principal office of the system shall be in quarters at Topeka, Kansas. ~~Offices shall be~~
~~assigned to the system by the secretary of administration.~~

(2) The board shall keep a complete record of all proceedings which shall be open at
all reasonable hours to inspection. Any agreement in settlement of litigation involving the
system and the investment of moneys of the fund shall be open for inspection by any person
and suitable facilities shall be made available by the system for this purpose as provided by
the provisions of K.S.A. 45-215 et seq. and amendments thereto. A report covering the
operation of the system for the past fiscal year, including income and disbursements, and
of the financial condition of the system at the end of such fiscal year, showing the valuation
of assets and investments and liabilities of the system, shall be delivered after the end of
each fiscal year and prior to January 1 of the next fiscal year to the governor and to the
chairperson of the legislative coordinating council, to the secretary of the senate and to the
chief clerk of the house of representatives and shall be made readily available to the mem-
bers and participating employers of the system. Such report shall include the financial state-
ments of the system and supporting schedules, presented in accordance with generally ac-
cepted accounting principles. Such supporting schedules presented in the annual report
shall include a listing which reports the cost and the fiscal year end lower amount of cost
or market value for each individual alternative investment of the system which was initiated
on or after July 1, 1991, and reports, in aggregate, the cost and the fiscal year end lower
amount of cost or market value for those alternative investments of the system initiated
prior to July 1, 1991. The retirement system shall maintain a listing which reports the cost
and the fiscal year end lower amount of cost or market value for each individual alternative
investment of the system which was initiated prior to July 1, 1991, and such listing shall be
available for review in camera by the joint committee on pensions, investments and benefits
and as may be required under the provisions of the legislative post audit act.

Sec. 13. K.S.A. 1997 Supp. 74-4908 is hereby amended to read as follows: 74-4908. (1)
The board shall appoint an executive secretary and shall establish the compensation therefor.
Subject to the direction of the board, the executive secretary shall be the managing officer
of the system and as such shall have charge of the office, records and supervision and
direction of the employees of the system. The executive secretary shall be in the unclassified
service under the Kansas civil service act.

(2) The executive secretary shall recommend to the board the administrative organi-
zation, the number and qualifications of employees necessary to carry out the intent of this
act and the directions of the board. Upon approval of the board, the executive secretary is
authorized to employ such persons in accordance with the Kansas civil service act.

(3) The board of trustees shall select and employ or retain a qualified actuary who shall
serve at its pleasure as its technical advisor on matters regarding operation of the system.
The actuary shall:

(a) Make an annual valuation of the liabilities and reserves of the system, and a deter-
mination of the contributions required by the system to discharge its liabilities and admin-
istrative costs under this act, and recommend to the board rates of employer contributions
required to establish and maintain the system on an actuarial reserve basis. Such recom-
mended employer contributions shall not be based on any other purpose outside of the
needs of the system as prescribed by this subsection.

(b) As soon after the effective date as practicable and once every three years thereafter,
make a general investigation of the actuarial experience under the system including mor-
tality, retirement, employment turnover and interest, and recommend actuarial tables for
use in valuations and in calculating actuarial equivalent values based on such investigation.

(c) Cooperate with and provide any assistance to the actuary, the legislative coordinating
council and the joint committee on pensions, investments and benefits related to the in-
dependent actuarial audit and evaluation as provided in K.S.A. ~~1996~~ 1997 Supp. 74-4908a
and amendments thereto.

(d) Perform such other duties as may be assigned by the board.

(4) The attorney general of the state shall furnish such legal services as may be necessary
upon receipt of a request from the board, except that legal services may be furnished by
other counsel as the board in its discretion deems necessary and prudent.

(5) The board shall employ or retain qualified investment counsel or counselors or may
negotiate with a trust company to assist and advise in the judicious investment of funds as
herein provided.

(6) The board may appoint a deputy executive secretary, an investment officer, an in-
vestment analyst, a real estate manager, a direct placement manager, a chief fiscal officer,
a member services officer, an attorney, an assistant investment officer and an information
resource officer to advise and assist the board in the performance of powers, duties and
functions relating to the management and investment of the fund and in such other matters
as may be directed by the board. Such appointed officers and employees shall be in the
unclassified service under the Kansas civil service act. The compensation of such appointed
officers and employees shall be established by the board.

Sec. 14. K.S.A. 1997 Supp. 74-4910 is hereby amended to read as follows: 74-4910. (1)
An eligible employer may join the system on January 1 of any year. Application for affiliation
shall be in the form of a resolution approved by the governing or legislative body of the
eligible employer or by any other body or officer authorized by law or recognized by the
board to approve the action. No city or township shall become a participating employer
except by the adoption of a resolution therefor, which shall be published once in the official
city or township newspaper or, if there is none, in a newspaper of general circulation in the
city or county. No such resolution shall take effect until 60 days after its final publication.
If within 60 days of its final publication a petition signed by electors equal in number to not
less than 10% of the electors who voted at the last preceding regular election in the township,
in the case of townships, the last regular city election in the city, in the case of cities is filed
in the office of the clerk of such city, or township demanding that such resolution be sub-
mitted to a vote of the electors, the resolution shall not take effect until submitted to a
referendum and approved by a majority of the electors voting thereon. A 2/3 vote of the
members-elect of the governing body shall be necessary for the affiliation of any eligible
employer other than a city or township. An application for affiliation with the system shall
be filed with the board not later than 30 days prior to the date participation is to begin,
except as such time limit may be extended by the board. Upon the filing of a certified copy
of such resolutions with the board an election pursuant to this section shall be irrevocable,
and the employer shall become a participating employer on January 1 of the year immedi-
ately following the filing of such election with the board.

(2) The state of Kansas in its capacity as an eligible employer, shall become, by operation
of law, a participating employer on the first entry date. The Kansas turnpike authority shall
not become a participating employer nor shall its officers or employees be covered by the
retirement system until such time as its governing body by a 2/3 vote of the members of such
governing body adopts a resolution for affiliation and files the same in the same manner
and on the same conditions as in the case of an eligible employer other than a city or
township.

(3) If a participating employer is paying or has paid the salary or other compensation
of the judge, clerk or any other employee, whether elective or appointive, such judge, clerk
or other employee of such court or courts, whether elective or appointive, shall be deemed
an employee of the participating employer. Such employee shall be governed by the pro-
visions governing other eligible employees of such participating employer. Any participating
employer which has not heretofore included such employees as eligible employees under
the retirement system shall on the first day of the month coinciding with or following the
effective date of this act include such employees if otherwise eligible as eligible employees
under the retirement system. Such employees, whether elective or appointive, if employed
on the employer's entry date may elect to pay forthwith the employee contributions from
the employer's entry date and thereby be governed by the provisions governing other em-
ployees employed by the participating employer on entry date except that no such employee
shall be considered to be new employees on the first day of the month coinciding with or
following the effective date of this act and commence making employee contributions in
compliance with other provisions governing the retirement system and the participating
employer shall make the employer contributions in accordance with the alternative elected
by the employee and other provisions governing the retirement system.

(4) Any employer whose employees are covered by social security and who otherwise
do not meet the provisions of subsection (13) of K.S.A. 74-4902 and amendments thereto
may elect to affiliate under this section upon meeting the definition of a governmental entity
or instrumentality as determined by the system. If, subsequent to such determination, the
United States internal revenue service determines that such employer does not meet the
definition of a governmental entity or instrumentality, such affiliation shall be null and void
and all employee accrued rights associated with such affiliation shall be null and void and
the system shall refund such amounts presently credited to each employee's account and
an equivalent amount to the employer for each employee. The provisions of this subsection
shall apply to current and future participating employers.

(5) For affiliations on and after January 1, 1999, any eligible employer, prior to the filing
of an application for affiliation under this system, shall request the board of trustees to submit
a proposal for such affiliation including an estimate of the employer's contribution rate
necessary to comply with the actuarial standard of this system. Such eligible employer shall
furnish all necessary data from which such proposal is prepared, and shall pay all costs
involved.

Sec. 15. K.S.A. 1997 Supp. 74-4911, as amended by section 28 of 1998 Senate Bill No.
382, is hereby amended to read as follows: 74-4911. (1) Any employee of a participating
employer other than an elected official on the entry date of such employer shall be a member
of the system on either the entry date or the first day of the payroll period coinciding with
or following the completion of one year of service, whichever is later. For purposes of this
act occasional breaks in service which shall not exceed an aggregate of 10 days in any such
year shall not constitute a break in service for purposes of determining the membership
date of such employee.

(2) Except as otherwise provided in this subsection, any employee other than an elected
official who is employed by a participating employer after the entry date of such employer
shall be a member of the system on the first day of the payroll period coinciding with or
following completion of one year of continuous service. For purposes of this act, occasional
breaks in service which shall not exceed an aggregate of 10 days in any such year shall not
constitute a break in continuous service for purposes of determining the membership date
of such employee. For purposes of this subsection, any employee of a local governmental
unit which has its own pension plan who becomes an employee of a participating employer
as a result of a merger or consolidation of services provided by local governmental units,
which occurred on January 1, 1994, may count service with such local governmental unit in
determining whether such employee has met the one year of continuous service requirement
contained in this subsection.

(3) Any employee who is an elected official and is eligible to join the system shall file,
within 90 days after taking the oath of office, an irrevocable election to become or not to
become a member of the system. Such election shall become effective immediately upon
making such election, if such election is made within 14 days of taking the oath of office or,
otherwise, on the first day of the first payroll period of the first quarter following receipt of
the election in the office of the retirement system. In the event that such elected official
fails to file the election to become a member of the retirement system, it shall be presumed
that such person has elected not to become a member.

(4) Except as otherwise required by USERRA, any employee other than an elected
official who is in military service or on leave of absence on the entry date of such employee's
employer shall become a member of the system upon returning to active employment or
on the first day of the payroll period coinciding with or following the completion of one
year of service, whichever is later. For purposes of this act, occasional breaks in service
which shall not exceed an aggregate of 10 days in any such year shall not constitute a break
in service for purposes of determining the membership date of such employee.

(5) Any employee of the state of Kansas other than an elected official, who is receiving
or is eligible for assistance by the state board of regents in the purchase of a retirement
annuity under K.S.A. 74-4925, and amendments thereto, and who becomes ineligible for
such assistance because such employee's position is reclassified to a position in the classified
service under the Kansas civil service act, or who becomes ineligible for such assistance
because such person accepts and transfers to a position in the classified service under the
Kansas civil service act shall be a member of the system on the first day of the payroll period
coinciding with or following the effective date of such reclassification or transfer. Any such
employee who became ineligible for such assistance prior to the effective date of this act
because of such a reclassification or such a transfer occurring prior to the effective date of
this act and who is not a member of the system on the effective date of this act shall be a
member of the system on the first day of the payroll period coinciding with or following the
effective date of this act.

(6) Any employee of the state board of regents or of an educational institution under
its management, other than an elected official, who is a member of the system and who
becomes ineligible to be a member of the system because such employee's position is re-
classified to a position under the Kansas civil service act which is eligible for assistance by
the state board of regents in the purchase of a retirement annuity under K.S.A. 74-4925
and amendments thereto, or who becomes ineligible to be a member of the system because
such employee transfers to a position under the Kansas civil service act which is eligible for
such assistance, shall become eligible for such assistance in accordance with the provisions
of K.S.A. 74-4925 and amendments thereto, unless such employee files a written election
in the office of the retirement system, in the form and manner prescribed by the board of
trustees thereof, to remain a member of the system prior to the first day of the first complete
payroll period occurring after the effective date of such reclassification or transfer. Failure
to file such written election shall be presumed to be an election not to remain a member
of the system and to become eligible for assistance by the state board of regents in the
purchase of a retirement annuity under K.S.A. 74-4925 and amendments thereto. Such
election, whether to remain a member of the system or to become eligible for such assis-
tance, shall be effective as of the effective date of such reclassification or transfer, and shall
be irrevocable.

(7) Any elected official who at the time of becoming an elected official is already a
member of the system by being or having been an employee of a participating employer
shall continue as a member of the system.

Sec. 16. K.S.A. 1997 Supp. 74-4913, as amended by section 33 of 1998 Senate Bill No.
382, is hereby amended to read as follows: 74-4913. (1) Prior service shall be credited as
follows:

(a) A member shall receive full credit for continuous employment prior to the entry
date with such member's employer on the entry date. If the employee was also employed
on March 15~~, 1961, by the employer who is the employee's employer on the employee's~~
~~entry date~~ of the year immediately preceding the entry date of that employer, then all such
previous employment, whether or not continuous, shall be credited; otherwise no credit
shall be granted for employment prior to a break in continuous employment. Any member
or retirant ~~who has been credited with prior service as hereinbefore provided and~~ who was
employed by any participating employer on March 15~~, 1961~~ of the year immediately pre-
ceding the entry date of that employer, may apply to the board on such forms as it may
prescribe for prior service credit with a participating employer other than the member's
entry date employer. Upon receipt of written verification of such employment from the
participating employer, the board ~~may~~ shall grant such additional prior service credit and
with respect to a retirant, shall adjust the amount of the retirement benefit accordingly
commencing with the next monthly benefit payment due following receipt of the written
verification, except that such retirant shall not be entitled to any retroactive adjustment in
the amount of such retirement benefit as a result of the board granting such additional prior
service credit. In the case of any person other than a retirant receiving a retirement benefit,
such person may make application for an adjustment in the benefit amount in the same
manner as a member or retirant, and in such case the adjustment in the benefit amount
shall be determined by the board upon the advice of the actuary, and shall commence with
the next monthly benefit payment due following receipt of the written verification;

(b) leaves of absence and military service shall not be counted as breaks in continuous
employment; however, military service which is immediately preceded and followed by
employment with a participating employer shall be credited, except that after July 1, 1974,
not more than five years' credit for military service shall be granted hereunder to the extent
required under USERRA, but leaves of absence shall not be credited;

(c) any member who was employed in the Kansas state employment service, now a
section of the Kansas division of employment security, during any of the time the Kansas
state employment service was loaned by the state to the federal government (January 1,
1942, for the duration of the emergency period of world war II, which service was returned
to the state by the federal government effective November 16, 1946) shall be entitled to
prior service credit for the time so employed during the period stated for any service ren-
dered under the jurisdiction of the United States employment service for the federal gov-
ernment in like manner as if the employment service had remained under the jurisdiction
of the state of Kansas;

(d) any member who is not otherwise eligible for service credit as provided for in sub-
section (1)(a) may be granted credit for the service upon the attainment of 38 quarters of
participating service;

(e) any member who was employed by the university of Wichita prior to July 1, 1964,
shall be entitled to prior service credit for such time of employment under the Kansas public
employees retirement system, when such employment is not the basis for other pension
rights.

(2) Participating service shall be credited as follows: (a) A member shall receive credit
for participating service with a participating employer in accordance with the rules and
regulations established by the board of trustees, except that no more than one calendar
quarter of participating service shall be credited for any employment within any one calendar
quarter;

(b) leaves of absence and military service shall not count as a break in continuous em-
ployment. In the case of a leave of absence, the member shall leave such member's accu-
mulated contribution on deposit with the fund; however, the period of military service shall
be credited, except that after July 1, 1974, not more than five years' credit for military
service shall be granted hereunder to the extent required under USERRA, but leaves of
absence shall not be credited. Employees who enter the military service from their em-
ployment after the employer's entry date and who have not completed one year of service
at the time of their entry into the military service, shall not become members of the retire-
ment system until they return to the employment of that or another participating employer.
In the case of such employee whose combined public employment and military service does
not equal one year at the time of such employee's return to employment, the date of mem-
bership shall be the first day of the payroll period coinciding with or following the completion
of one combined public employment and military year of service. Such service shall be
granted in accordance with this section;

(c) a period of retirement under the system or a period of total disability, immediately
followed by employment with a participating employer, shall not count as a break in con-
tinuous employment, except that such periods while not employed shall not be credited as
participating service;

(d) termination of employment, followed by employment with a participating employer
within five years after such termination, does not constitute a break in continuous employ-
ment if such person has not withdrawn such person's accumulated contribution. Such period
while not employed shall not be credited as participating service.

(3) In determining the number of years of credited prior service or participating service
a fractional year of six months or more shall be considered as one year and a fractional year
of less than six months shall be disregarded.

Sec. 17. K.S.A. 1997 Supp. 74-4914 is hereby amended to read as follows: 74-4914. (1)
The normal retirement date for a member of the system shall be the first day of the month
coinciding with or following termination of employment with any participating employer
not followed by employment with any participating employer within 30 days and the at-
tainment of age 65 or, ~~commencing July 1, 1986, age 65 or age 60 with the completion of~~
~~35 years of credited service or at any age with the completion of 40 years of credited service,~~
or commencing July 1, 1993, ~~any alternative normal retirement date already prescribed by~~
~~law or~~ age 62 with the completion of 10 years of credited service or the first day of the
month coinciding with or following the date that the total of the number of years of credited
service and the number of years of attained age of the member is equal to or more than 85.
In no event shall a normal retirement date for a member be before six months after the
entry date of the participating employer by whom such member is employed. A member
may retire on the normal retirement date or on the first day of any month thereafter upon
the filing with the office of the retirement system of an application in such form and manner
as the board shall prescribe. Nothing herein shall prevent any person, member or retirant
from being employed, appointed or elected as an employee, appointee, officer or member
of the legislature. Elected officers may retire from the system on any date on or after the
attainment of the normal retirement date, but no retirement benefits payable under this act
shall be paid until the member has terminated such member's office.

(2) No retirant shall make contributions to the system or receive service credit for any
service after the date of retirement.

(3) Any member who is an employee of an affiliating employer pursuant to K.S.A. 74-
4954b and amendments thereto and has not withdrawn such member's accumulated con-
tributions from the Kansas police and firemen's retirement system may retire before such
member's normal retirement date on the first day of any month coinciding with or following
the attainment of age 55.

(4) Any member may retire before such member's normal retirement date on the first
day of any month coinciding with or following termination of employment with any partic-
ipating employer not followed by employment with any participating employer within 30
days and the attainment of age 55 with the completion of 10 years of credited service, but
in no event before six months after the entry date, upon the filing with the office of the
retirement system of an application for retirement in such form and manner as the board
shall prescribe.

(5) If a retirant who retired on or after July 1, 1988, is employed or appointed in or to
any position or office for which compensation for service is paid~~, during calendar years 1988~~
~~through 1990, in an amount equal to $6,000 or more in any one such calendar year; during~~
~~calendar year 1991, in an amount equal to $9,720 or more; during calendar year 1992, in~~
~~an amount equal to $10,200 or more; during calendar year 1993, in an amount equal to~~
~~$10,560 or more; during calendar year 1994, in an amount equal to $11,160 or more; or~~
~~during calendar year 1995 and all calendar years thereafter,~~ in an amount equal to ~~$11,280~~
$15,000 or more in any one such calendar year, by any participating employer for which
such retirant was employed or appointed during the final two years of such retirant's par-
ticipation, such retirant shall not receive any retirement benefit for any month for which
such retirant serves in such position or office. The participating employer shall report to the
system within 30 days of when the compensation paid to the retirant is equal to or exceeds
any limitation provided by this section. Any retirant employed by a participating employer
shall not make contributions nor receive additional credit under such system for such service
except as provided by this section. Upon request of the executive secretary of the system,
the secretary of revenue shall provide such information as may be needed by the executive
secretary to carry out the provisions of this act. The provisions of this subsection shall not
apply to retirants employed as substitute teachers or officers, employees, appointees or
members of the legislature or any other elected officials.

(6) For purposes of this section, any employee of a local governmental unit which has
its own pension plan who becomes an employee of a participating employer as a result of a
merger or consolidation of services provided by local governmental units, which occurred
on January 1, 1994, may count service with such local governmental unit in determining
whether such employee has met the years of credited service requirements contained in
this section.

Sec. 18. K.S.A. 1997 Supp. 74-4914e is hereby amended to read as follows: 74-4914e.
(1) As used in this section:

(a) ``Correctional employee'' means any member of the system who is a security officer
or other employee of the department of corrections and who is in a position for which the
duties and responsibilities involve regular contact with inmates as certified by the secretary
of corrections;

(b) ``disability'' means the total inability to perform permanently the duties of the po-
sition of a correctional employee in which the correctional employee was employed at the
time of disability;

(c) ``service-connected'' means any physical or mental disability resulting from external
force, violence or disease occasioned by an act of duty as a correctional employee and
includes, for any correctional employee after five years of credited service, any death or
disability resulting from a heart disease or disease of the lung or respiratory tract, except
that in the event that the correctional employee ceases to be a contributing member except
by reason of a service-connected disability for a period of six months or more and then again
becomes a contributing member the provision relating to death or disability resulting from
a heart disease or disease of the lung or respiratory tract shall not apply until such correc-
tional employee has again become a contributing member for a period of not less than two
years or unless clear and precise evidence is presented that the heart disease or disease of
the lung or respiratory tract was in fact occasioned by an act of duty as a correctional
employee; and

(d) ``final average salary'' means the average highest annual compensation paid to a
correctional employee for any three of the last five years of participating service immediately
preceding the date of disability, or if participating service is less than three years, then the
average annual compensation paid to the correctional employee during the full period of
participating service or if a correctional employee has less than one calendar year of partic-
ipating service the correctional employee's final average salary shall be computed by mul-
tiplying the correctional employee's highest monthly salary received in that year by 12.

(2) If any active contributing correctional employee becomes totally and permanently
disabled due to service-connected causes as defined in subsection (1), such correctional
employee shall be retired and the following benefits shall become payable and shall continue
until the correctional employee's death or until the correctional employee recovers from
the disability if a report of the event in a form acceptable to the board is filed in the office
of the executive secretary of the board within 220 days after the date of the event or act of
duty causing such disability and an application for such benefit, in such form and manner
as the board shall prescribe, is filed by the correctional employee or the correctional em-
ployee's authorized representative in the office of the executive secretary of the board within
two years of the date of disability:

(a) The correctional employee shall receive a retirement benefit equal to 50% of the
correctional employee's final average salary. Such benefit shall accrue from the day upon
which the correctional employee ceases to draw compensation.

(b) Each of the correctional employee's unmarried children under the age of 18 years
or each of the correctional employee's children under the age of 23 years who are full-time
students as provided in K.S.A. 74-49,117 and amendments thereto shall receive an annual
benefit equal to 10% of the correctional employee's final average salary. Such benefit shall
accrue from the day upon which the correctional employee ceases to draw compensation
and shall end on the first day of the month in which each such child or children attains the
age of 18 years, die or marry, whichever occurs earlier or in which each such child or children
attains the age of 23 years, if such child or children are full-time students as provided in
K.S.A. 74-49,117 and amendments thereto.

(c) In no case shall the total benefits payable under paragraphs (a) and (b) of this
subsection (2) be in excess of 75% of the correctional employee's final average salary.

(d) In the event a correctional employee who is retired under paragraph (a) of this
subsection (2), dies within two years after the date of such retirement, then benefits may
be payable under subsection (2) of K.S.A. 74-4916 and amendments thereto.

(e) In the event a correctional employee who is retired under paragraph (a) of this
subsection (2), dies more than two years after the date of such retirement, and the proximate
cause of such death is the service-connected cause from which the disability resulted, then
benefits may be payable under subsection (2) of K.S.A. 74-4916 and amendments thereto.

(f) In the event a correctional employee who is retired under subsection (2) dies after
the date of retirement and no benefits are payable under paragraphs (d) and (e) the following
benefits shall be payable:

(i) To the correctional employee's spouse, if lawfully wedded to the correctional employee
at the time of the correctional employee's death, a lump-sum benefit equal to 50% of the
correctional employee's final average salary at the time of the correctional employee's re-
tirement.

(ii) To the correctional employee's spouse, if lawfully wedded to the correctional em-
ployee at the time of the correctional employee's death, an annual benefit equal to 50% of
the correctional employee's retirement benefit payable in monthly installments, to accrue
from the first day of the month following the correctional employee's date of death and
ending on the first day of the month in which the spouse dies. If there is no surviving spouse,
or if after the death of the spouse there remain one or more children under the age of 18
years or one or more children under the age of 23 years who is a full-time student as provided
in K.S.A. 74-49,117, and amendments thereto, the annual spouse's benefit shall be payable
in equal shares to such children and each child's share shall end on the first day of the month
in which such child attains the age of 18 years or dies, whichever occurs earlier or in which
such child attains the age of 23 years, if such child is a full-time student as provided in
K.S.A. 74-49,117, and amendments thereto.

The provisions of this subsection shall apply in all cases of such correctional employees
who die after October 1, 1996.

(3) If any correctional employee who is an active contributing member prior to such
correctional employee's normal retirement becomes totally and permanently disabled for a
period of 180 days from causes not service-connected, and not as the result of a willfully
negligent or intentional act of the correctional employee, such correctional employee shall
be retired and the following benefit shall become payable and shall continue until the cor-
rectional employee's death or until the correctional employee recovers from such disability
whichever occurs first if a report of the disability in a form acceptable to the board is filed
in the office of the executive secretary of the board within 220 days after the date of the
commencement of such disability and if an application for such benefit in such form and
manner as the board shall prescribe is filed in the office of the executive secretary of the
board within two years of the date of disability:

A retirement benefit equal to 2% of the correctional employee's final average salary
multiplied by the number of years of credited service, except that such retirement benefit
shall be at least equal to 25% of the member's final average salary but not to exceed the
amount of the retirement benefit provided in paragraph (a) of subsection (2). Such benefit
shall not become payable until satisfactory evidence is presented to the board that the
correctional employee is and has been for a period of 180 days totally and permanently
disabled, but benefits shall accrue from the day upon which the correctional employee ceases
to draw compensation.

(4) Any correctional employee who is employed for compensation by an employer other
than the department of corrections and whose disability is incurred in the course of such
other employment shall not be eligible for any of the benefits provided in subsection (3).

(5) If a correctional employee becomes totally and permanently disabled and no benefits
are payable under subsections (2) or (3), the sum of the correctional employee's accumulated
contributions shall be paid to the correctional employee.

(6) Any correctional employee receiving benefits under this section shall submit to med-
ical examination, not oftener than annually, by one or more physicians or any other practi-
tioners of the healing arts holding a valid license issued by Kansas state board of healing
arts, as the board of trustees may direct. If upon such medical examination the examiners
report to the board that the retirant is physically able and capable of resuming employment
with the participating employer from whose employment the correctional employee retired,
the disability benefits shall terminate. A retirant who has been receiving benefits under the
provisions of this section and who returns to employment of a participating employer shall
immediately commence accruing service credit which shall be added to that which has been
accrued by virtue of previous service.

(7) Any retirant who has been receiving benefits under the provisions of this section for
a period of five years shall be deemed finally retired and shall not be subject to further
medical examinations, except that if the board of trustees shall have reasonable grounds to
question whether the retirant remains totally and permanently disabled, a further medical
examination or examinations may be required.

(8) Refusal or neglect to submit to examination as provided in subsection (6) shall be
sufficient cause for suspending or discontinuing benefit payments under this section and if
such refusal or neglect shall continue for a period of one year, the correctional employee's
rights in and to all benefits under the system may be revoked by the board.

(9) Any retirement benefits payable under the provisions of this section shall be in lieu
of all other benefits under the system.

(10) Each correctional employee shall report to such member's participating employer
any event or act of duty causing disability within 200 days after such event or act of duty.
The department of corrections shall file in the office of the executive secretary of the board,
in a form acceptable to the board, a report of the event or act of duty causing disability
within 220 days after the event or act of duty.

(11) Benefits payable under this section shall be reduced by the original amount of any
disability benefits received under the federal social security act or the workers compensation
act. For any correctional employee already retired on the effective date of this act, no
reduction of the original social security benefits shall be applicable to benefits paid prior to
the effective date of this act. In no case shall a correctional employee who is entitled to
receive benefits under this section receive less than $100 per month.

(12) The provisions of this section shall apply to disabilities occurring after June 30,
1982, and prior to July 1, 1995. At the direction of the board of trustees, the actuary shall
conduct an experience evaluation of benefits payable under this section and the board shall
provide copies of such study to the governor and members of the legislature.

(13) The provisions of K.S.A. 74-4927 and amendments thereto relating to insured dis-
ability benefits shall not be applicable to correctional employees subject to the provisions
of this section.

(14) In the event a correctional employee who is retired under subsection (3) dies after
the date of retirement and no benefits are payable under that subsection, the following
benefits shall be payable:

(i) To the correctional employee's spouse, if lawfully wedded to the correctional employee
at the time of the correctional employee's death, a lump-sum benefit equal to 50% of the
correctional employee's final average salary at the time of the correctional employee's re-
tirement.

(ii) To the correctional employee's spouse, if lawfully wedded to the correctional em-
ployee at the time of the correctional employee's death, an annual benefit equal to 50% of
the correctional employee's retirement benefit payable in monthly installments, to accrue
from the first day of the month following the correctional employee's date of death and
ending on the first day of the month in which the spouse dies. If there is no surviving spouse,
or if after the death of the spouse there remain one or more children under the age of 18
years or one or more children under the age of 23 years who is a full-time student as provided
in K.S.A. 74-49,117, and amendments thereto, the annual spouse's benefit shall be payable
in equal shares to such children and each child's share shall end on the first day of the month
in which such child attains the age of 18 years or dies, whichever occurs earlier or in which
such child attains the age of 23 years, if such child is a full-time student as provided in
K.S.A. 74-49,117, and amendments thereto.

The provisions of this subsection shall apply in all cases of such correctional employees
who die after October 1, 1996.

Sec. 19. K.S.A. 1997 Supp. 74-4917 is hereby amended to read as follows: 74-4917. (1)
Upon termination of employment with a participating employer, not followed by employ-
ment with such participating employer or another participating employer within 30 days of
such termination, the member shall be paid an amount equal to the member's accumulated
contributions then on deposit with the system after making application in such form as may
be prescribed by the board, except that the system shall have a reasonable time to process
the application for withdrawal. The participating employer shall, upon giving a terminated
employee a withdrawal application, certify to the system all member contributions which
have not been reported previously. In the case of a death of an active member, the partic-
ipating employer shall certify to the system all member contributions which have not been
reported previously and remit such contributions if the participating employer has not sub-
mitted a monthly remittance for the terminating quarter. The participating employer shall
be responsible to the system for any overpayment or underpayment of member contribu-
tions made by the system relating to a withdrawal of accumulated contributions or a death
of an active member which is due to an inaccurate certification of all member contributions
which have not been reported to the system as required by this section made by the partic-
ipating employer. A leave of absence, a period of total disability or military service shall not
be considered a termination of employment unless the member withdraws accumulated
contributions.

(2) Except as otherwise provided by this subsection, if such member has completed 10
years of credited service at date of termination, such member automatically shall be granted
a vested retirement benefit in the system, except that at any time prior to the commence-
ment of retirement benefit payments the member may withdraw accumulated contributions,
whereupon no other benefits shall be payable for such member's prior and participating
service credit. For purposes of this subsection, any employee of a local governmental unit
which has its own pension plan who becomes an employee of a participating employer as a
result of a merger or consolidation of services provided by local governmental units, which
occurred on January 1, 1994, may count service with such local governmental unit in de-
termining whether such employee has met the 10 years of credited service for vesting
requirement contained in this subsection. Eligibility of such member for retirement benefits
and procedures for making application for retirement benefits shall be in accordance with
K.S.A. 74-4914 and amendments thereto. Such member shall make application for retire-
ment in such form as may be prescribed by the board and retirement benefits shall accrue
from the first day of the month following receipt of such application. The amount of the
retirement benefit shall be determined as provided in K.S.A. 74-4915 and amendments
thereto.

(3) Termination of employment of a member, followed by employment with a partici-
pating employer within five years after such termination, does not constitute a break in
continuous employment if such member has not withdrawn accumulated contributions.
Such period while not employed shall not be credited.

(4) If, after the expiration of five years following the termination of employment, a
former member becomes an employee of such former member's former participating em-
ployer, or another participating employer, such former member shall be deemed to be a
new employee. If a member, who has a vested benefit again becomes an employee of a
participating employer, any credited service such member subsequently accrues shall be
added to that which had been vested by virtue of previous service. Eligibility of such member
for retirement benefits and procedures for making application for retirement benefits shall
be in accordance with K.S.A. 74-4914 and amendments thereto.

Sec. 20. K.S.A. 1997 Supp. 74-4919a, as amended by section 38 of 1998 Senate Bill
No. 382, is hereby amended to read as follows: 74-4919a. (1) An employee of a participating
employer who becomes a member as provided in K.S.A. 74-4911 and amendments thereto,
after completion of one year of continuous employment as therein provided may purchase
participating service credit for such year of employment by making application therefor.
Such application and payment may be made at any time after the employee becomes a
member and continues to be employed by a participating employer. Any member of the
system who has not retired may purchase, subject to the provisions of section 83 and amend-
ments thereto, such service credit by paying the then present value of the retirement benefits
based on such service by means of a single lump-sum payment in the amount determined
by the actuary using the member's attained age and the actuarial assumptions and tables
currently in use by this retirement system. If an employee was employed before the partic-
ipating employer's entry date and did not become a member until the first day of the month
or the first day of the first payroll period, whichever is applicable, coinciding with or follow-
ing the completion of one year continuous employment, the member may purchase, subject
to the provisions of section 83 and amendments thereto, participating service credit for the
period from the participating employer's entry date until such member became a member
by paying to the system the then present value of the retirement benefits based on such
service by means of a single lump-sum payment in the amount determined by the actuary
using the member's attained age and the actuarial assumptions and tables currently in use
by this retirement system.

Notwithstanding any other provision of this subsection, if an employee purchases such
participating service credit within 12 months of such employee's membership in the system,
such employee may purchase such participating service credit by making application there-
for and paying to the system a lump-sum amount equivalent to 4% of the compensation paid
to such member for personal services during such period. If an employee was employed for
a partial year after the participating employer's entry date and did not become a member
at that time, but became a member at a later date, the member may purchase, subject to
the provisions of section 83 and amendments thereto, participating service credit for such
partial year of employment by paying the then present value of the retirement benefits
based on such service by means of a single lump-sum payment in the amount determined
by the actuary using the member's attained age and the actuarial assumptions and tables
currently in use by this retirement system.

(2) Any employee of the state of Kansas who was receiving or was eligible for assistance
by the state board of regents in the purchase of a retirement annuity under K.S.A. 74-4925
and amendments thereto, and who became ineligible for such assistance prior to the effec-
tive date of this act because such employee's position was reclassified to a position in the
classified service under the Kansas civil service act, or who became ineligible for such
assistance because such person accepted and transferred to a position in the classified service
under the Kansas civil service act, and who becomes a member of the system on the first
day of the payroll period coinciding with or following the effective date of this act in ac-
cordance with subsection (5) of K.S.A. 74-4911 and amendments thereto, may purchase,
subject to the provisions of section 83 and amendments thereto, participating service credit
for the period of employment from the effective date of such reclassification or transfer to
the date of such employee's membership in the system. Such employee may purchase such
participating service credit by making application therefor and paying to the system a lump-
sum amount equivalent to 4% of the compensation paid to such member for personal
services during such period by the state of Kansas or as provided in subsection (3). Such
application and payment may be made at any time after the employee becomes a member
and continues to be employed by a participating employer.

(3) Except as otherwise provided in this subsection, any member of the retirement
system may purchase, subject to the provisions of section 83 and amendments thereto,
participating service credit for employment service as described in this section, if first com-
menced prior to January 1, 1996, by electing to effect such purchase by means of having
employee contributions as provided in K.S.A. 74-4919 and amendments thereto deducted
from such member's compensation at a percentage rate equal to two times or three times
the employee's rate of contribution as provided in K.S.A. 74-4919 and amendments thereto
for such periods of service, in lieu of a lump-sum amount as provided in this section. Such
deductions shall commence at the beginning of the quarter following such election and shall
remain in effect until all quarters of such service have been purchased. Subject to the
provisions of section 83 and amendments thereto, any person may make any such purchase
as described in this section, if first commenced in calendar year 1996 or thereafter, at an
additional rate of contribution, in addition to the employee's rate of contribution as provided
in K.S.A. 74-4919 and amendments thereto, based upon the member's attained age at the
time of purchase and using actuarial assumptions and tables in use by the retirement system
at such time of purchase, for such periods of service, in lieu of a lump-sum amount as
provided in this section. Such additional rate of contribution shall commence at the begin-
ning of the quarter following such election and shall remain in effect until all quarters of
such service have been purchased. Notwithstanding any other provision of this subsection,
any member of the retirement system, within 12 months of such member's membership date
in the system, may purchase participating service credit for employment service as described
in this section, by electing to effect such purchase by means of having employee contributions
as provided in K.S.A. 74-4919, and amendments thereto, deducted from such member's
compensation at a percentage rate equal to two times or three times the employee's rate of
contribution as provided in K.S.A. 74-4910, and amendments thereto, for such periods of
service, in lieu of a lump-sum amount as provided in this section. Such deductions shall
commence at the beginning of the quarter following such election and shall remain in effect
until all quarters of such service have been purchased. Such purchase must be completed
within 24 months of such membership date in the system.

Sec. 21. K.S.A. 1997 Supp. 74-4919h, as amended by section 44 of 1998 Senate Bill
No. 382, is hereby amended to read as follows: 74-4919h. (1) In addition to any military
service credited under the provisions of K.S.A. 74-4913 or 74-4936 and amendments thereto,
or in the event that an active contributing member does not qualify for credit for military
service as defined in subsection (22) of K.S.A. 74-4902 and amendments thereto, such
member may purchase, subject to the provisions of section 83 and amendments thereto,
participating credit for periods of active service in the armed forces of the United States or
in the commissioned corps of the United States public health service and for periods of
service required to fulfill the requirements of section 651 of title 10, United States code,
which are not otherwise creditable, which when added to any creditable military service do
not exceed six years. Except as provided in subsection (4)(a) for such purchase of partici-
pating credit for such periods of such military service which is the basis for military pension
rights, such member shall be entitled to purchase one quarter of participating service credit
for each year of service required to fulfill the requirements of section 651 of title 10, United
States code. Except as otherwise provided in this section, such purchase shall be effected
by the member submitting proof of such service acceptable to the board and, if first com-
menced prior to January 1, 1996, electing in writing to have employee contributions as
provided in K.S.A. 74-4919 and amendments thereto deducted from such member's com-
pensation at a percentage rate equal to two times or three times the employee's rate of
contribution as provided in K.S.A. 74-4919 and amendments thereto for such periods of
service. Such deductions shall commence at the beginning of the quarter following such
election and shall remain in effect until all of the full quarters of such service have been
purchased. Any person may make any such purchase as described in this section, subject to
the provisions of section 83 and amendments thereto, if first commenced in calendar year
1996 or thereafter, at an additional rate of contribution, in addition to the employee's rate
of contribution as provided in K.S.A. 74-4919 and amendments thereto, based upon the
member's attained age at the time of purchase and using actuarial assumptions and tables
in use by the retirement system at such time of purchase, for such periods of service, in
lieu of a lump-sum amount as provided in this section. Such additional rate of contribution
shall commence at the beginning of the quarter following such election and shall remain in
effect until all quarters of such service have been purchased.

(2) (a) Such purchase of participating service credit must be completed prior to such
member's retirement.

(b) For members purchasing such participating service credit on or after July 1, 1993,
whose purchase is completed within five years before such member's retirement, subject to
the provisions of section 83 and amendments thereto, such member shall pay the actuarially
determined amount by means of a single lump-sum payment or equal annual payments
which shall be completed prior to retirement. The lump-sum payment or annual payments
shall be determined by the system's actuary by using the member's current annual salary at
the time, actuarial assumptions and tables currently in use by the system and the member's
attained age. Any member who purchases such participating service credit and who does
not make the lump-sum payment or annual payments as required by this subsection shall
have any previously credited service under this section voided and such member shall be
refunded such member's payments previously made for such purchase plus interest. The
provisions of this subsection shall not apply to any member who is employed by an institution
that is closed or abolished or otherwise ceases operations or that is scheduled for such
closure, abolition or cessation of operations and has a budget reduction imposed that is
associated with such closure, abolition or cessation of operations, and who is laid off from
employment with such institution for the reason of such closure, abolition or cessation. As
used in this subsection, ``institution'' means Topeka state hospital or Winfield state hospital
and training center; and ``laid off'' means, in the case of a state officer or employee in the
classified service under the Kansas civil service act, being laid off under K.S.A. 75-2948 and
amendments thereto and in the case of a state officer or employee in the unclassified service
under the Kansas civil service act, being terminated from employment with the state agency
by the appointing authority, except that ``laid off'' shall not include any separation from
employment pursuant to budget reduction or expenditure authority reduction and reduction
of F.T.E. positions under K.S.A. 75-6801 and amendments thereto.

(3) In the event such member has elected to purchase participating service credit as
provided in K.S.A. 74-4919a to 74-4919e, inclusive, and any amendments thereto, the in-
creased employee contributions and purchase of participating service credit provided herein
shall not commence until after the purchase of participating service credit under K.S.A. 74-
4919a to 74-4919e, inclusive, and any amendments thereto, has been completed. If a mem-
ber terminates employment before completing the purchase of all participating service credit
as such member may be entitled to, such member shall only receive such credit for those
full quarters as the percentage rate equal to two times or three times the employee's rate
of contribution as provided in K.S.A. 74-4919 and amendments thereto or those full quarters
as the additional rate of contribution, in addition to the employee's rate of contribution as
provided in K.S.A. 74-4919 and amendments thereto has been deducted from such mem-
ber's compensation.

(4) (a) Any member of the system who has not yet retired may purchase participating
service credit for military service as described in this section which is the basis for military
pension rights at an additional rate of contribution in addition to the employee's rate of
contribution as provided in K.S.A. 74-4919 and amendments thereto, based upon the mem-
ber's attained age at the time of purchase and using actuarial assumptions and tables in use
by the retirement system at the time of such purchase. Such additional rate of contribution
shall commence at the beginning of the quarter following such election and shall remain in
effect until all quarters of such service have been purchased. Any such member may pur-
chase, subject to the provisions of section 83 and amendments thereto, participating service
credit for military service as described in this section by electing to effect such purchase by
means of a single lump-sum payment in lieu of employee contributions as provided in this
section. The lump-sum payment shall be an amount determined by the actuary using the
member's then current annual rate of compensation, or if not actively employed, the mem-
ber's annual rate of compensation when last participating, the actuarial assumptions and
tables currently in use by the retirement system and the member's attained age.

(b) Any member of the retirement system who has not retired may purchase, subject
to the provisions of section 83 and amendments thereto, participating service credit for
military service as described in this section which is not the basis for military pension rights
by electing to effect such purchase by means of a single lump-sum payment in lieu of
employee contributions as provided in this section. The lump-sum payment shall be an
amount determined by the actuary using the member's then current annual rate of com-
pensation, or if not actively employed, the member's annual rate of compensation when last
participating, the actuarial assumptions and tables currently in use by the retirement system
and the member's attained age.

Sec. 22. K.S.A. 74-4919i, as amended by section 45 of 1998 Senate Bill No. 382, is
hereby amended to read as follows: 74-4919i. Any person who becomes a member of the
Kansas public employees retirement system pursuant to subsection (14) of K.S.A. 74-4902,
subsection (4) of K.S.A. 74-4932, K.S.A. 74-4911c, K.S.A. 74-4911d or K.S.A. 74-4919k and
amendments thereto, may elect to purchase additional benefits for any service performed
during the period that such person was barred from membership in the Kansas public
employees retirement system, except that no person shall purchase additional benefits for
any service which is the basis or will become the basis for retirement credit or benefits
under a retirement annuity under the provisions of K.S.A. 74-4925 and amendments thereto.
~~As used in this section, ``annual compensation'' means the rate of annual compensation being~~
~~paid to such member by the participating employer on the date of application to purchase~~
~~additional benefits.~~ At the election of the member the benefit for each year of service shall
be equal to either 1% or 1.75% of the final average salary of any such member. For any
member who elected to purchase service credit as provided in this section prior to the
effective date of this act at the 1% rate, such member may elect to purchase such service
credit at an additional amount of .75% of final average salary of such member in a lump-
sum amount as otherwise provided in this subsection. Such member may purchase additional
benefits by making application therefor ~~at least three years~~ prior to date of retirement and,
subject to the provisions of section 83 and amendments thereto, ~~by making~~ at an additional
rate of contribution in addition to the employee's rate of contribution as provided in K.S.A.
74-4919 and amendments thereto, based upon the member's attained age at the time of
purchase and using actuarial assumptions and tables in use by the retirement system at the
time of such purchase. Such additional rate of contribution shall commence at the beginning
of the quarter following such election and shall remain in effect until all quarters of such
service have been purchased. Any such member may purchase service as described in this
section by electing to effect such purchase by means of a single lump-sum payment in lieu
of employee contributions as provided in this section in an amount equal to the then present
value of the benefits being purchased as determined by the actuary using the member's
attained age, annual compensation at the time of purchase and the actuarial assumptions
and tables then in use by the system. The lump-sum payment shall be made immediately
upon being notified of the amount due. ~~The benefit for each such year of service shall be~~
~~equal to 1% of the annual compensation at the time the member purchases such additional~~
~~benefits.~~

Sec. 23. K.S.A. 1997 Supp. 74-4919n, as amended by section 49 of 1998 Senate Bill
No. 382, is hereby amended to read as follows: 74-4919n. Any employee of a participating
employer who is a member of the Kansas public employees retirement system, who was
previously employed in another state in nonfederal governmental employment and which
service otherwise meets the requirements of an employee as prescribed in subsection (14)
of K.S.A. 74-4902 or subsection (4) of K.S.A. 74-4932 and amendments thereto, may elect
to purchase, subject to the provisions of section 83 and amendments thereto, ~~prior~~ service
for such out-of-state nonfederal governmental employment. At the election of the member,
the benefit for each such year of employment shall be equal to either 1% or 1.75% of the
final average salary of any such member. For any member who elected to purchase service
credit as provided in this section prior to the effective date of this act at the 1% rate, such
member may elect to purchase such service credit at an additional amount of .75% of final
average salary of such member in a lump-sum amount as otherwise provided in this sub-
section. Such member may purchase such ~~prior~~ service by making application therefor prior
to date of retirement at an additional rate of contribution in addition to the employee's rate
of contribution as provided in K.S.A. 74-4919 and amendments thereto, based upon the
member's attained age at the time of purchase and using actuarial assumptions and tables
in use by the retirement system at the time of such purchase. Such additional rate of con-
tribution shall commence at the beginning of the quarter following such election and shall
remain in effect until all quarters of such service have been purchased. Subject to the
provisions of section 83 and amendments thereto, any such member may purchase such
~~prior~~ service as described in this section by electing to effect such purchase by means of a
single lump-sum payment in lieu of employee contributions as provided in this section in
an amount equal to the then present value of the benefits being purchased as determined
by the actuary using the member's attained age, annual compensation at the time of purchase
and the actuarial assumptions and tables then in use by this system. The lump-sum payment
shall be made immediately upon being notified of the amount due.

Sec. 24. K.S.A. 1997 Supp. 74-4919p is hereby amended to read as follows: 74-4919p.
Any member may purchase ~~prior~~ service for periods of service in the United States peace
corps which commenced on or after January 1, 1962. At the election of the member, the
benefit for each such period of service shall be equal to either 1% or 1.75% of the final
average salary of any such member. For any member who elected to purchase service credit
as provided in this section prior to the effective date of this act at the 1% rate, such member
may elect to purchase such service credit at an additional amount of .75% of final average
salary of such member in a lump-sum amount as otherwise provided in this subsection. Such
member may purchase such ~~prior~~ service by making application therefor prior to date of
retirement at an additional rate of contribution in addition to the employee's rate of con-
tribution as provided in K.S.A. 74-4919 and amendments thereto, based upon the member's
attained age at the time of purchase and using actuarial assumptions and tables in use by
the retirement system at the time of such purchase. Such additional rate of contribution
shall commence at the beginning of the quarter following such election and shall remain in
effect until all quarters of such service have been purchased. Any such member may pur-
chase ~~prior~~ service as described in this section by electing to effect such purchase by means
of a single lump-sum payment in lieu of employee contributions as provided in this section
in an amount equal to the then present value of the benefits being purchased as determined
by the actuary using the member's attained age, annual compensation at the time of purchase
and the actuarial assumptions and tables then in use by this system. The lump-sum payment
shall be made immediately upon being notified of the amount due. No participating em-
ployer shall pay the cost, or any part thereof, of any ~~prior~~ service authorized to be purchased
by a member under this section. The provisions of this section shall be effective on and
after July 1, 1996.

Sec. 25. K.S.A. 1997 Supp. 74-4919q is hereby amended to read as follows: 74-4919q.
Any employee of a participating employer who is a member of the Kansas public employees
retirement system, who was previously employed as an employee of the memorial union
corporation which is affiliated with Emporia state university, may elect to purchase ~~prior~~
service for such employment. At the election of the member, the benefit for each such year
of employment shall be equal to either 1% or 1.75% of the final average salary of any such
member. For any member who elected to purchase service credit as provided in this section
prior to the effective date of this act at the 1% rate, such member may elect to purchase
such service credit at an additional amount of .75% of final average salary of such member
in a lump-sum amount as otherwise provided in this subsection. Such member may purchase
such ~~prior~~ service by making application therefor prior to date of retirement at an additional
rate of contribution in addition to the employee's rate of contribution as provided in K.S.A.
74-4919 and amendments thereto, based upon the member's attained age at the time of
purchase and using actuarial assumptions and tables in use by the retirement system at the
time of such purchase. Such additional rate of contribution shall commence at the beginning
of the quarter following such election and shall remain in effect until all quarters of such
service have been purchased. Any such member may purchase ~~prior~~ service as described in
this section by electing to effect such purchase by means of a single lump-sum payment in
lieu of employee contributions as provided in this section in an amount equal to the then
present value of the benefits being purchased as determined by the actuary using the mem-
ber's attained age, annual compensation at the time of purchase and the actuarial assump-
tions and tables then in use by this system. The lump-sum payment shall be made imme-
diately upon being notified of the amount due. No participating employer shall pay the cost,
or any part thereof, of any ~~prior~~ service authorized to be purchased by a member under
this section. The provisions of this section shall be effective on and after July 1, 1996.

Sec. 26. K.S.A. 1997 Supp. 74-4920 is hereby amended to read as follows: 74-4920. (1)
(a) Upon the basis of each annual actuarial valuation and appraisal as provided for in sub-
section (3)(a) of K.S.A. 74-4908 and amendments thereto, the board shall certify, on or
before July 15 of each year, to the division of the budget in the case of the state and to the
agent for each other participating employer an actuarially determined estimate of the rate
of contribution which will be required, together with all accumulated contributions and
other assets of the system, to be paid by each such participating employer to pay all liabilities
which shall exist or accrue under the system, including amortization of the actuarial accrued
liability over a period of 40 years commencing on July 1, 1993, and the actuarial accrued
liability for members of the faculty and other persons who are employed by the state board
of regents or by educational institutions under its management assisted by the state board
of regents in the purchase of retirement annuities as provided in K.S.A. 74-4925 and amend-
ments thereto, as provided in this section. The actuarial accrued liability for all participating
employers other than the state board of regents relating to members of the faculty and other
persons described in this section, shall be amortized by annual payments that increase 4%
for each year remaining in the amortization period. For all participating employers other
than the state board of regents relating to members of the faculty and other persons de-
scribed in this section, the projected unit credit actuarial cost method shall be used in annual
actuarial valuations, commencing with the 1993 valuation, to determine the employer con-
tribution rates that shall be certified by the board. The actuarial accrued liability for mem-
bers of the faculty and other persons described in this subsection assisted by the state board
of regents in the purchase of retirement annuities as provided in K.S.A. 74-4925 and amend-
ments thereto shall be amortized by annual level payments over a period of 10 11 years
commencing July 1, 1993. Such certified rate of contribution shall be based on the standards
set forth in subsection (3)(a) of K.S.A. 74-4908 and amendments thereto and shall not be
based on any other purpose outside of the needs of the system.

(b) (i) For employers affiliating on and after January 1, 1999, upon the basis of an
annual actuarial valuation and appraisal of the system conducted in the manner provided
for in K.S.A. 74-4908 and amendments thereto, the board shall certify, on or before July 15
of each year to each such employer an actuarially determined estimate of the rate of con-
tribution which shall be required to be paid by each such employer to pay all of the liabilities
which shall accrue under the system from and after the entry date as determined by the
board, upon recommendation of the actuary. Such rate shall be termed the employer's par-
ticipating service contribution and shall be uniform for all participating employers. Such
additional liability shall be amortized over a period of 34 years commencing on July 1, 1999,
by annual payments that increase 4% for each year remaining in the amortization period.
For all participating employers described in this section, the projected unit credit actuarial
cost method shall be used in annual actuarial valuations to determine the employer contri-
bution rates that shall be certified by the board.

(ii) The board shall determine for each such employer separately an amount sufficient
to amortize over a period of not to exceed 34 years commencing July 1, l999, all liabilities
for prior service costs which shall have accrued at the time of entry into the system. On the
basis of such determination the board shall annually certify to each such employer separately
an actuarially determined estimate of the rate of contribution which shall be required to be
paid by that employer to pay all of the liabilities for such prior service costs. Such rate shall
be termed the employer's prior service contribution.

(2) The division of the budget and the governor shall include in the budget and in the
budget request for appropriations for personal services the sum required to satisfy the state's
obligation under this act as certified by the board and shall present the same to the legislature
for allowance and appropriation.

(3) Each other participating employer shall appropriate and pay to the system a sum
sufficient to satisfy the obligation under this act as certified by the board.

(4) Each participating employer is hereby authorized to pay the employer's contribution
from the same fund that the compensation for which such contribution is made is paid from
or from any other funds available to it for such purpose. Each political subdivision, other
than an instrumentality of the state, which is by law authorized to levy taxes for other
purposes, may levy annually at the time of its levy of taxes, a tax which may be in addition
to all other taxes authorized by law for the purpose of making its contributions under this
act and, in the case of cities and counties, to pay a portion of the principal and interest on
bonds issued under the authority of K.S.A. 12-1774 and amendments thereto by cities lo-
cated in the county, which tax, together with any other fund available, shall be sufficient to
enable it to make such contribution. In lieu of levying the tax authorized in this subsection,
any taxing subdivision may pay such costs from any employee benefits contribution fund
established pursuant to K.S.A. 12-16,102 and amendments thereto. Each participating em-
ployer which is not by law authorized to levy taxes as described above, but which prepares
a budget for its expenses for the ensuing year and presents the same to a governing body
which is authorized by law to levy taxes as described above, may include in its budget an
amount sufficient to make its contributions under this act which may be in addition to all
other taxes authorized by law. Such governing body to which the budget is submitted for
approval, may levy a tax sufficient to allow the participating employer to make its contri-
butions under this act, which tax, together with any other fund available, shall be sufficient
to enable the participating employer to make the contributions required by this act.

(5) The rate of contribution certified to a participating employer as provided in this
section shall apply during the fiscal year of the participating employer which begins in the
second calendar year following the year of the actuarial valuation. For the fiscal year com-
mencing in calendar year 1993, the employer rate of contribution for the state of Kansas
and for participating employers under K.S.A. 74-4931 and amendments thereto shall be
3.1% of the amount of compensation upon which members contribute during the period.
For the fiscal year commencing in calendar year 1994, the employer rate of contribution
for the state of Kansas and for participating employers under K.S.A. 74-4931 and amend-
ments thereto shall be 3.2% of the amount of compensation upon which members contribute
during the period. For the fiscal year commencing in calendar year 1994, the employer rate
of contribution for participating employers other than the state of Kansas shall be 2.2% of
the amount of compensation upon which members contribute during the period. Except as
specifically provided in this section, for the fiscal year commencing in calendar year 1995,
the rate of contribution certified to a participating employer shall in no event exceed such
participating employer's contribution rate for the immediately preceding fiscal year by more
than 0.1% of the amount of compensation upon which members contribute during the
period. Except as specifically provided in this section, for fiscal years commencing in cal-
endar year 1996 and in each subsequent calendar year, the rate of contribution certified to
the state of Kansas shall in no event exceed the state's contribution rate for the immediately
preceding fiscal year by more than 0.2% of the amount of compensation upon which mem-
bers contribute during the period. Except as specifically provided in this section, for fiscal
years commencing in calendar year 1997 and in each subsequent calendar year, the rate of
contribution certified to participating employers other than the state of Kansas shall in no
event exceed such participating employer's contribution rate for the immediately preceding
fiscal year by more than 0.15% of the amount of compensation upon which members con-
tribute during the period. There shall be an employer rate of contribution certified to the
state of Kansas and participating employers under K.S.A. 74-4931 and amendments thereto.
There shall be a separate employer rate of contribution certified to all other participating
employers other than the state of Kansas.

(6) The actuarial cost of any legislation enacted in the 1994 session of the Kansas leg-
islature will be included in the June 30, 1994, actuarial valuation in determining contribution
rates for participating employers.

(7) The actuarial cost of the provisions of section 50 will be included in the June 30,
1998, actuarial valuation in determining contribution rates for participating employers. The
actuarial accrued liability incurred for the provisions of section 50 shall be amortized over
15 years.

(8) The board with the advice of the actuary may fix the contribution rates for partici-
pating employers joining the system after one year from the first entry date or for employers
who exercise the option contained in K.S.A. 74-4912 and amendments thereto at rates
different from the rate fixed for employers joining within one year of the first entry date.

(9) For employers affiliating on and after January 1, 1999, the rates of contribution
certified to the participating employer as provided in this section shall apply during the
fiscal year immediately following such certification, but the rate of contribution during the
first year following the employer's entry date shall be equal to 7% of the amount of com-
pensation on which members contribute during the year. Any amount of such first year's
contribution which may be in excess of the necessary current service contribution shall be
credited by the board to the respective employer's prior service liability.

~~(8)~~ (10) Employer contributions shall in no way be limited by any other act which now
or in the future establishes or limits the compensation of any member.

~~(9)~~ (11) Notwithstanding any provision of law to the contrary, each participating em-
ployer shall remit quarterly, or as the board may otherwise provide, all employee deductions
and required employer contributions to the executive secretary for credit to the Kansas
public employees retirement fund within 20 three days after the end of the period covered
by the remittance ~~or within 25 days after forms or written instructions from the system were~~
~~mailed by the system to such employer, whichever is later~~ by electronic funds transfer.
Remittances of such deductions and contributions received after such date are delinquent.
Delinquent payments due under this subsection shall be subject to interest at the rate
established for interest on judgments under subsection (a) of K.S.A. 16-204 and amendments
thereto. At the request of the board, delinquent payments which are due or interest owed
on such payments, or both, may be deducted from any other moneys payable to such em-
ployer by any department or agency of the state.

Sec. 27. K.S.A. 1997 Supp. 74-4921 is hereby amended to read as follows: 74-4921. (1)
There is hereby created in the state treasury the Kansas public employees retirement fund.
All employee and employer contributions shall be deposited in the state treasury to be
credited to the Kansas public employees retirement fund. The fund is a trust fund and shall
be used solely for the exclusive purpose of providing benefits to members and member
beneficiaries and defraying reasonable expenses of administering the fund. Investment in-
come of the fund shall be added or credited to the fund as provided by law. All benefits
payable under the system, refund of contributions and overpayments, purchases or invest-
ments under the law and expenses in connection with the system unless otherwise provided
by law shall be paid from the fund. The director of accounts and reports is authorized to
draw warrants on the state treasurer and against such fund upon the filing in the director's
office of proper vouchers executed by the chairperson or the executive secretary of the
board. As an alternative, payments from the fund may be made by credits to the accounts
of recipients of payments in banks, savings and loan associations and credit unions. A pay-
ment shall be so made only upon the written authorization and direction of the recipient of
payment and upon receipt of such authorization such payments shall be made in accordance
therewith. Orders for payment of such claims may be contained on (a) a letter, memoran-
dum, telegram, computer printout or similar writing, or (b) any form of communication,
other than voice, which is registered upon magnetic tape, disc or any other medium designed
to capture and contain in durable form conventional signals used for the electronic com-
munication of messages.

(2) The board shall have the responsibility for the management of the fund and shall
discharge the board's duties with respect to the fund solely in the interests of the members
and beneficiaries of the system for the exclusive purpose of providing benefits to members
and such member's beneficiaries and defraying reasonable expenses of administering the
fund and shall invest and reinvest moneys in the fund and acquire, retain, manage, including
the exercise of any voting rights and disposal of investments of the fund within the limitations
and according to the powers, duties and purposes as prescribed by this section.

(3) Moneys in the fund shall be invested and reinvested to achieve the investment
objective which is preservation of the fund to provide benefits to members and member
beneficiaries, as provided by law and accordingly providing that the moneys are as productive
as possible, subject to the standards set forth in this act. No moneys in the fund shall be
invested or reinvested if the sole or primary investment objective is for economic devel-
opment or social purposes or objectives.

(4) In investing and reinvesting moneys in the fund and in acquiring, retaining, man-
aging and disposing of investments of the fund, the board shall exercise the judgment, care,
skill, prudence and diligence under the circumstances then prevailing, which persons of
prudence, discretion and intelligence acting in a like capacity and familiar with such matters
would use in the conduct of an enterprise of like character and with like aims by diversifying
the investments of the fund so as to minimize the risk of large losses, unless under the
circumstances it is clearly prudent not to do so, and not in regard to speculation but in
regard to the permanent disposition of similar funds, considering the probable income as
well as the probable safety of their capital.

(5) Notwithstanding subsection (4): (a) Total investments in common stock may be made
in the amount of up to 60% of the total book value of the fund;

(b) the board may invest or reinvest moneys of the fund in alternative investments if
the following conditions are satisfied:

(i) The total of such alternative investments does not exceed more than 5% of the total
investment assets of the fund. If the total of such alternative investments exceeds more than
5% of the total investment assets of the fund on the effective date of this act, the board
shall not invest or reinvest any moneys of the fund in alternative investments until the total
of such alternative investments is less the 5% of the total investment assets of the fund
subject to the 5% limitation contained in this subsection. Nothing in this subsection requires
the board to liquidate or sell the system's holdings in any alternative investment held by the
system on the effective date of this act, unless such liquidation or sale would be in the best
interest of the members and beneficiaries of the system and be prudent under the standards
contained in this section. The 5% limitation contained in this section shall not have been
violated if the total of such alternative investments exceeds 5% of the total investment assets
of the fund as a result of market forces acting to increase the value of such alternative
investments relative to the rest of the system's investments; however, the board shall not
invest or reinvest any moneys of the fund in alternative investments until the total of such
alternative investments is less than 5% of the total investment assets of the fund subject to
the 5% limitation contained in this subsection;

(ii) if in addition to the system, there are at least two other sophisticated investors, as
defined by section 301 of the securities and exchange act of 1933;

(iii) the system's share in any individual alternative investment is limited to an invest-
ment representing not more than 20% of any such individual alternative investment;

(iv) the system has received a favorable and appropriate recommendation from a qual-
ified, independent expert in investment management or analysis in that particular type of
alternative investment;

(v) the alternative investment is consistent with the system's investment policies and
objectives as provided in subsection (6);

(vi) the individual alternative investment does not exceed more than 2.5% of the total
alternative investments made under this subsection. If the alternative investment is made
pursuant to participation by the system in a multi-investor pool, the 2.5% limitation con-
tained in this subsection is applied to the underlying individual assets of such pool and not
to investment in the pool itself. The total of such alternative investments made pursuant to
participation by the system in any one individual multi-investor pool shall not exceed more
than 20% of the total of alternative investments made by the system pursuant to this sub-
section. Nothing in this subsection requires the board to liquidate or sell the system's hold-
ings in any alternative investments made pursuant to participation by the system in any one
individual multi-investor pool held by the system on the effective date of this act, unless
such liquidation or sale would be in the best interest of the members and beneficiaries of
the system and be prudent under the standards contained in this section. The 20% limitation
contained in this subsection shall not have been violated if the total of such investment in
any one individual multi-investor pool exceeds 20% of the total alternative investments of
the fund as a result of market forces acting to increase the value of such a multi-investor
pool relative to the rest of the system's alternative investments; however, the board shall
not invest or reinvest any moneys of the fund in any such individual multi-investor pool until
the value of such individual multi-investor pool is less than 20% of the total alternative
investments of the fund;

(vii) the board has received and considered the investment manager's due diligence
findings submitted to the board as required by subsection (6)(c); and

(viii) prior to the time the alternative investment is made, the system has in place pro-
cedures and systems to ensure that the investment is properly monitored and investment
performance is accurately measured.

For purposes of this act, ``alternative investment'' means nontraditional investments out-
side the established nationally recognized public stock exchanges and government securities
market. Alternative investments shall include, but not be limited to, private placements,
venture capital, partnerships, limited partnerships and leveraged buyout partnerships;

(c) except as otherwise provided, the board may invest or reinvest moneys of the fund
in real estate investments if the following conditions are satisfied:

(i) ~~If, in addition to the system, there are at least two other sophisticated investors, as~~
~~defined by section 301 of the securities and exchange act of 1933;~~

~~(ii) the system's share in any individual real estate investment is limited to an investment~~
~~representing not more than 20% of any such individual real estate investment;~~

~~(iii)~~ The system has received a favorable and appropriate recommendation from a qual-
ified, independent expert in investment management or analysis in that particular type of
real estate investment;

~~(iv)~~ (ii) the real estate investment is consistent with the system's investment policies and
objectives as provided in subsection (6); and

~~(v) the total of such real estate investments made pursuant to participation by the system~~
~~in any one individual multi-investor pool shall not exceed more than 20% of the total of real~~
~~estate investments made by the system pursuant to this subsection. Nothing in this subsec-~~
~~tion requires the board to liquidate or sell the system's holdings in any real estate investments~~
~~made pursuant to participation by the system in any one individual multi-investor pool held~~
~~by the system on the effective date of this act, unless such liquidation or sale would be in~~
~~the best interest of the members and beneficiaries of the system and be prudent under the~~
~~standards contained in this section. The 20% limitation contained in this subsection shall~~
~~not have been violated if the total of such investment in any one individual multi-investor~~
~~pool exceeds 20% of the total real estate investments of the fund as a result of market forces~~
~~acting to increase the value of such a multi-investor pool relative to the rest of the system's~~
~~real estate investments; however, the board shall not invest or reinvest any moneys of the~~
~~fund in any such individual multi-investor pool until the value of such individual multi-~~
~~investor pool is less than 20% of the total real estate investments of the fund;~~

~~(vi)~~ (iii) the board has received and considered the investment manager's due diligence
findings submitted to the board as required by subsection (6)(c);

~~(vii) prior to the time the real estate investment is made, the system has in place pro-~~
~~cedures and systems to ensure that the investment is properly monitored and investment~~
~~performance is accurately measured; and~~

~~(viii) the provisions of this subsection shall not apply to any real estate investment held~~
~~by the system on July 1, 1992;~~ and

(d) the board shall not invest or reinvest moneys of the fund in any banking institution,
savings and loan association or credit union which positions the system as a shareholder or
owner of such banking institution, savings and loan association or credit union.

(6) Subject to the objective set forth in subsection (3) and the standards set forth in
subsections (4) and (5) the board shall formulate policies and objectives for the investment
and reinvestment of moneys in the fund and the acquisition, retention, management and
disposition of investments of the fund. Such policies and objectives shall include:

(a) Specific asset allocation standards and objectives;

(b) establishment of criteria for evaluating the risk versus the potential return on a
particular investment;

(c) a requirement that all investment managers submit such manager's due diligence
findings on each investment to the board or investment advisory committee for approval or
rejection prior to making any alternative investment;

(d) a requirement that all investment managers shall immediately report all instances
of default on investments to the board and provide the board with recommendations and
options, including, but not limited to, curing the default or withdrawal from the investment;
and

(e) establishment of criteria that would be used as a guideline for determining when no
additional add-on investments or reinvestments would be made and when the investment
would be liquidated.

The board shall review such policies and objectives, make changes considered necessary
or desirable and readopt such policies and objectives on an annual basis.

(7) The board may enter into contracts with one or more persons whom the board
determines to be qualified, whereby the persons undertake to perform the functions spec-
ified in subsection (2) to the extent provided in the contract. Performance of functions under
contract so entered into shall be paid pursuant to rates fixed by the board subject to pro-
visions of appropriation acts and shall be based on specific contractual fee arrangements.
The system shall not pay or reimburse any expenses of persons contracted with pursuant to
this subsection, except that after approval of the board, the system may pay approved in-
vestment related expenses subject to provisions of appropriation acts. The board shall re-
quire that a person contracted with to obtain commercial insurance which provides for errors
and omissions coverage for such person in an amount to be specified by the board, provided
that such coverage shall be at least the greater of $500,000 or 1% of the funds entrusted to
such person up to a maximum of $10,000,000. The board shall require a person contracted
with to give a fidelity bond in a penal sum as may be fixed by law or, if not so fixed, as may
be fixed by the board, with corporate surety authorized to do business in this state. Such
persons contracted with the board pursuant to this subsection and any persons contracted
with such persons to perform the functions specified in subsection (2) shall be deemed to
be agents of the board and the system in the performance of contractual obligations.

(8) (a) In the acquisition or disposition of securities, the board may rely on the written
legal opinion of a reputable bond attorney or attorneys, the written opinion of the attorney
of the investment counselor or managers, or the written opinion of the attorney general
certifying the legality of the securities.

(b) The board shall employ or retain qualified investment counsel or counselors or may
negotiate with a trust company to assist and advise in the judicious investment of funds as
herein provided.

(9) (a) Except as provided in subsection (7) and this subsection, the custody of money
and securities of the fund shall remain in the custody of the state treasurer, except that the
board may arrange for the custody of such money and securities as it considers advisable
with one or more member banks or trust companies of the federal reserve system or with
one or more banks in the state of Kansas, or both, to be held in safekeeping by the banks
or trust companies for the collection of the principal and interest or other income or of the
proceeds of sale. The services provided by the banks or trust companies shall be paid pur-
suant to rates fixed by the board subject to provisions of appropriation acts.

(b) The state treasurer and the board shall collect the principal and interest or other
income of investments or the proceeds of sale of securities in the custody of the state
treasurer and pay same when so collected into the fund.

(c) The principal and interest or other income or the proceeds of sale of securities as
provided in clause (a) of this subsection (9) shall be reported to the state treasurer and the
board and credited to the fund.

(10) The board shall with the advice of the director of accounts and reports establish
the requirements and procedure for reporting any and all activity relating to investment
functions provided for in this act in order to prepare a record monthly of the investment
income and changes made during the preceding month. The record will reflect a detailed
summary of investment, reinvestment, purchase, sale and exchange transactions and such
other information as the board may consider advisable to reflect a true accounting of the
investment activity of the fund.

(11) The board shall provide for an examination of the investment program annually.
The examination shall include an evaluation of current investment policies and practices
and of specific investments of the fund in relation to the objective set forth in subsection
(3), the standard set forth in subsection (4) and other criteria as may be appropriate, and
recommendations relating to the fund investment policies and practices and to specific
investments of the fund as are considered necessary or desirable. The board shall include
in its annual report to the governor as provided in K.S.A. 74-4907, and amendments thereto,
a report or a summary thereof covering the investments of the fund.

(12) (a) The legislative post auditor shall conduct an annual financial-compliance audit
of the system, performance audits of the system as prescribed by this section and under the
Kansas governmental operations law, and such other audits as are directed by the legislative
post audit committee under the Kansas legislative post audit act. The annual financial-
compliance audit shall include, but not be limited to, a review of alternative investments of
the system with any estimates of permanent impairments to the value of such alternative
investments reported by the system pursuant to K.S.A. 74-4907, and amendments thereto.

(b) Except as otherwise provided by this subsection, the legislative post auditor shall
conduct annual performance audits, as directed by the legislative post audit committee,
which shall include, but not be limited to, one or more of the following subjects: An eval-
uation of the performance of investment managers, an evaluation of the rates of return of
investments reported by the system, an evaluation of the total compensation received for
the planned year by investment managers by individual investment classification, and a
comparison of the system's investment practices and performance with the investment prac-
tices and performance of other state pension programs by asset type, including all asset
types described as alternative investments in subsection (5)(b). Commencing with the per-
formance audit for the fiscal year ending June 30, 1994, the legislative post audit committee
shall specify which of the subjects listed in this subsection shall be included in each per-
formance audit conducted pursuant to this subsection, in addition to such other subjects as
may be directed to be included in the performance audit by the legislative post audit com-
mittee. Commencing with the performance audit for the fiscal year ending June 30, 1994,
each of the subjects listed in this subsection shall be included at least once every two fiscal
years in a performance audit conducted pursuant to this subsection, excluding any fiscal
year during which the system and the board are subject to review and evaluation by the
legislature under the Kansas governmental operations accountability law. Except as other-
wise directed by the legislative post audit committee, no performance audit shall be con-
ducted pursuant to this subsection during any fiscal year when the system and the board
are subject to a performance audit and to review and evaluation under the Kansas govern-
mental operations accountability law.

(c) The auditor to conduct any audit required pursuant to this subsection shall be spec-
ified in accordance with K.S.A. 46-1122, and amendments thereto. If the legislative post
audit committee specifies under such statute that a firm, as defined by K.S.A. 46-1112, and
amendments thereto, is to perform all or part of the audit work of such audit, such firm
shall be selected and shall perform such audit work as provided in K.S.A. 46-1123, and
amendments thereto, and K.S.A. 46-1125 through 46-1127, and amendments thereto. The
audits required pursuant to this subsection shall be conducted in accordance with generally
accepted governmental auditing standards. The audits required pursuant to this subsection
shall be conducted as soon after the close of the fiscal year as practicable, but shall be
completed no later than six months after the close of the fiscal year. The post auditor shall
annually compute the reasonably anticipated cost of providing the financial-compliance audit
pursuant to this section, subject to review and approval by the contract audit committee
established by K.S.A. 46-1120, and amendments thereto. Upon such approval, the system
shall reimburse the division of post audit for the amount approved by the contract audit
committee. The furnishing of the financial-compliance audit pursuant to this section shall
be a transaction between the legislative post auditor and the system and shall be settled in
accordance with the provisions of K.S.A. 75-5516, and amendments thereto.

(d) Any internal assessment or examination of alternative investments of the system
performed by any person or entity employed or retained by the board which evaluates or
monitors the performance of alternative investments shall be reported to the legislative post
auditor so that such report may be reviewed in accordance with the annual audits provided
in subsection (12)(a).

Sec. 28. K.S.A. 74-4924 is hereby amended to read as follows: 74-4924. (1) Any person
who shall knowingly make any false statement, or who shall falsify or permit to be falsified
any record necessary for carrying out the intent of this act for the purpose of committing
fraud, shall be ~~guilty of a misdemeanor, and upon conviction shall be punished by a fine~~
~~not exceeding five hundred dollars ($500) or by imprisonment for not exceeding one (1)~~
~~year~~ subject to the provisions of K.S.A. 21-3904 and amendments thereto.

(2) Should any error in any records or in any calculation of the Kansas public employees
retirement system result in any member or beneficiary receiving more or less than he would
have been entitled to receive had the records or calculations been correct, the board shall
correct such error, and, as far as practicable, make future payments in such a manner that
the actuarial equivalent of the benefit to which such member or beneficiary was entitled
shall be paid~~, and to this end~~ and may recover any overpayments: ~~Provided,~~. In the event a
member has withdrawn, all or part of, ~~his~~ such member's accumulated contributions in a
manner not in compliance with the provisions of this act or the regulations of the system
the amount of such withdrawal, plus interest at a rate specified by the board, shall be
deducted from any amounts, including group insurance benefits, which shall become due
the member or ~~his~~ such member's beneficiaries under the provisions of this act.

Sec. 29. K.S.A. 1997 Supp. 74-4927, as amended by section 53 of 1998 Senate Bill No.
382, is hereby amended to read as follows: 74-4927. (1) The board may establish a plan of
death and long-term disability benefits to be paid to the members of the retirement system
as provided by this section. The long-term disability benefit shall not be payable until the
member has been prevented from carrying out each and every duty pertaining to the mem-
ber's employment as a result of sickness or injury for a period of 180 days and the annual
benefit shall not exceed an amount equal to 662/3% of the member's annual rate of com-
pensation on the date such disability commenced and shall be payable in equal monthly
installments. In the event that a member's compensation is not fixed at an annual rate but
on an hourly, weekly, biweekly, monthly or any other basis than annual, the board shall
prescribe by rule and regulation a formula for establishing a reasonable rate of annual
compensation to be used in determining the amount of the death or long-term disability
benefit for such member. Such plan shall provide that:

(A) For deaths occurring prior to January 1, 1987, the right to receive such death benefit
shall cease upon the member's attainment of age 70 or date of retirement whichever first
occurs. The right to receive such long-term disability benefit shall cease (i) for a member
who becomes eligible for such benefit before attaining age 60, upon the date that such
member attains age 65 or the date of such member's retirement, whichever first occurs, (ii)
for a member who becomes eligible for such benefit at or after attaining age 60, the date
that such member has received such benefit for a period of five years, upon the date that
such member attains age 70, or upon the date of such member's retirement, whichever first
occurs, (iii) for all disabilities incurred on or after January 1, 1987, for a member who
becomes eligible for such benefit at or after attaining age 70, the date that such member
has received such benefit for a period of 12 months or upon the date of such member's
retirement, whichever first occurs, and (iv) for all disabilities incurred on or after January
1, 1987, for a member who becomes eligible for such benefit at or after attaining age 75,
the date that such member has received such benefit for a period of six months or upon
the date of such member's retirement, whichever first occurs.

(B) Long-term disability benefit payments shall be in lieu of any accidental total disa-
bility benefit that a member may be eligible to receive under subsection (3) of K.S.A. 74-
4916 and amendments thereto. The member must make an initial application for social
security disability benefits and, if denied such benefits, the member must pursue and exhaust
all administrative remedies of the social security administration which include, but are not
limited to, reconsideration and hearings. Such plan may provide that any amount which a
member receives as a social security benefit or a disability benefit or compensation from
any source by reason of any employment including, but not limited, to, workers compen-
sation benefits may be deducted from the amount of ~~insured~~ long-term disability benefit
payments under such plan~~, except that not more than 50% of such workers compensation~~
~~benefits shall be deducted therefrom~~. During the period in which such member is pursuing
such administrative remedies prior to a final decision of the social security administration,
social security disability benefits may be estimated and may be deducted from the amount
of long-term disability benefit payments under such plan. Such ~~insured~~ long-term disability
payments shall accrue from the later of the 181st day of total disability or the first day upon
which the member ceases to draw compensation from the employer. If the social security
benefit, workers compensation benefit, other income or wages or other disability benefit by
reason of employment, or any part thereof, is paid in a lump-sum, the amount of the re-
duction shall be calculated on a monthly basis over the period of time for which the
lump-sum is given. In no case shall a member who is entitled to receive ~~insured~~ long-term
disability benefits receive less than $50 per month. As used in this section, ``workers com-
pensation benefits'' means the total award of disability benefit payments under the workers
compensation act notwithstanding any payment of attorney fees from such benefits as pro-
vided in the workers compensation act.

(C) The plan may include other provisions relating to qualifications for benefits; sched-
ules and graduation of benefits; limitations of eligibility for benefits by reason of termination
of employment or membership; conversion privileges; limitations of eligibility for benefits
by reason of leaves of absence, military service or other interruptions in service; limitations
on the condition of long-term disability benefit payment by reason of improved health;
requirements for medical examinations or reports; or any other reasonable provisions as
established by rule and regulation of uniform application adopted by the board.

(D) On and after April 30, 1981, the board may provide under the plan for the contin-
uation of long-term disability benefit payments to any former member who forfeits the
entitlement to continued service credit under the retirement system or continued assistance
in the purchase of retirement annuities under K.S.A. 74-4925 and amendments thereto and
to continued long-term disability benefit payments and continued death benefit coverage,
by reason of the member's withdrawal of contributions from the retirement system or the
repurchase of retirement annuities which were purchased with assistance received under
K.S.A. 74-4925 and amendments thereto. Such long-term disability benefit payments may
be continued until such individual dies, attains age 65 or is no longer disabled, whichever
occurs first.

(E) Any visually impaired person who is in training at and employed by a sheltered
workshop for the blind operated by the secretary of social and rehabilitation services and
who would otherwise be eligible for the ~~insured~~ long-term disability benefit as described in
this section shall not be eligible to receive such benefit due to visual impairment as such
impairment shall be determined to be a preexisting condition.

(2) (A) In the event that a member becomes eligible for a long-term disability benefit
under the plan authorized by this section such member shall be given participating service
credit for the entire period of such disability. Such member's final average salary shall be
computed in accordance with subsection (17) of K.S.A. 74-4902 and amendments thereto
except that the years of participating service used in such computation shall be the years of
salaried participating service.

(B) In the event that a member eligible for a long-term disability benefit under the plan
authorized by this section shall be disabled for a period of five years or more immediately
preceding retirement, such member's final average salary shall be adjusted upon retirement
by the actuarial salary assumption rates in existence during such period of disability. Effec-
tive July 1, 1993, such member's final average salary shall be adjusted upon retirement by
5% for each year of disability after July 1, 1993, but before July 1, 1998. Effective July 1,
1998, such member's final average salary shall be adjusted upon retirement by an amount
equal to the lesser of: (i) The percentage increase in the consumer price index for all urban
consumers as published by the bureau of labor statistics of the United States department of
labor minus 1%; or (ii) four percent per annum, measured from the month the disability
occurs to the month that is two months prior to the month of retirement, for each year of
disability after July 1, 1998.

(C) In the event that a member eligible for a long-term disability benefit under the plan
authorized by this section shall be disabled for a period of five years or more immediately
preceding death, such member's current annual rate shall be adjusted by the actuarial salary
assumption rates in existence during such period of disability. Effective July 1, 1993, such
member's current annual rate shall be adjusted upon death by 5% for each year of disability
after July 1, 1993, but before July 1, 1998. Effective July 1, 1998, such member's current
annual rate shall be adjusted upon death by an amount equal to the lesser of: (i) The per-
centage increase in the consumer price index for all urban consumers published by the
bureau of labor statistics of the United States department of labor minus 1%; or (ii) four
percent per annum, measured from the month the disability occurs to the month that is two
months prior to the month of death, for each year of disability after July 1, 1998.

(3) (A) To carry out the legislative intent to provide, within the funds made available
therefor, the broadest possible coverage for members who are in active employment or
involuntarily absent from such active employment, the plan of death and long-term disability
benefits shall be subject to adjustment from time to time by the board within the limitations
of this section. The plan may include terms and provisions which are consistent with the
terms and provisions of group life and long-term disability policies usually issued to those
employers who employ a large number of employees. The board shall have the authority to
establish and adjust from time to time the procedures for financing and administering the
plan of death and long-term disability benefits authorized by this section. Either the insured
death benefit or the insured disability benefit or both such benefits may be financed directly
by the system or by one or more insurance companies authorized and licensed to transact
group life and group accident and health insurance in this state.

(B) The board may contract with one or more insurance companies, which are author-
ized and licensed to transact group life and group accident and health insurance in Kansas,
to underwrite or to administer or to both underwrite and administer either the insured
death benefit or the ~~insured~~ long-term disability benefit or both such benefits. Each such
contract with an insurance company under this subsection shall be entered into on the basis
of competitive bids solicited and administered by the board. Such competitive bids shall be
based on specifications prepared by the board.

(i) In the event the board purchases one or more policies of group insurance from such
company or companies to provide either the insured death benefit or the ~~insured~~ long-term
disability benefit or both such benefits, the board shall have the authority to subsequently
cancel one or more of such policies and, notwithstanding any other provision of law, to
release each company which issued any such canceled policy from any liability for future
benefits under any such policy and to have the reserves established by such company under
any such canceled policy returned to the system for deposit in the group insurance reserve
of the fund.

(ii) In addition, the board shall have the authority to cancel any policy or policies of
group life and long-term disability insurance in existence on the effective date of this act
and, notwithstanding any other provision of law, to release each company which issued any
such canceled policy from any liability for future benefits under any such policy and to have
the reserves established by such company under any such canceled policy returned to the
system for deposit in the group insurance reserve of the fund. Notwithstanding any other
provision of law, no premium tax shall be due or payable by any such company or companies
on any such policy or policies purchased by the board nor shall any brokerage fees or
commissions be paid thereon.

(4) (A) There is hereby created in the state treasury the group insurance reserve fund.
Investment income of the fund shall be added or credited to the fund as provided by law.
The cost of the plan of death and long-term disability benefits shall be paid from the group
insurance reserve fund, which shall be administered by the board. Each participating em-
ployer shall appropriate and pay to the system in such manner as the board shall prescribe
in addition to the employee and employer retirement contributions an amount equal to .6%
of the amount of compensation on which the members' contributions to the Kansas public
employees retirement system are based for deposit in the group insurance reserve fund.

(B) The director of the budget and the governor shall include in the budget and in the
budget request for appropriations for personal services a sum to pay the state's contribution
to the group insurance reserve fund as provided by this section and shall present the same
to the legislature for allowances and appropriation.

(C) The provisions of subsection (4) of K.S.A. 74-4920 and amendments thereto shall
apply for the purpose of providing the funds to make the contributions to be deposited to
the group insurance reserve fund.

(D) Any dividend or retrospective rate credit allowed by an insurance company or com-
panies shall be credited to the group insurance reserve fund and the board may take such
amounts into consideration in determining the amounts of the benefits under the plan
authorized by this section.

(5) The death benefit provided under the plan of death and long-term disability benefits
authorized by this section shall be known and referred to as insured death benefit. The
long-term disability benefit provided under the plan of death and long-term disability ben-
efits authorized by this section shall be known and referred to as ~~insured~~ long-term disability
benefit.

(6) The board is hereby authorized to establish an optional death benefit plan. Except
as provided in subsection (7), such optional death benefit plan shall be made available to
all employees who are covered or may hereafter become covered by the plan of death and
long-term disability benefits authorized by this section. The cost of the optional death benefit
plan shall be paid by the applicant either by means of a system of payroll deductions or
direct payment to the board. The board shall have the authority and discretion to establish
such terms, conditions, specifications and coverages as it may deem to be in the best interest
of the state of Kansas and its employees which should include term death benefits for the
person's period of active state employment regardless of age, but in no case, on and after
January 1, 1989, shall the maximum allowable coverage be less than $200,000. The cost of
the optional death benefit plan shall not be established on such a basis as to unreasonably
discriminate against any particular age group. The board shall have full administrative re-
sponsibility, discretion and authority to establish and continue such optional death benefit
plan and the director of accounts and reports of the department of administration shall when
requested by the board and from funds appropriated or available for such purpose establish
a system to make periodic deductions from state payrolls to cover the cost of the optional
death benefit plan coverage under the provisions of this subsection (6) and shall remit all
deductions together with appropriate accounting reports to the system. There is hereby
created in the state treasury the optional death benefit plan reserve fund. Investment income
of the fund shall be added or credited to the fund as provided by law. All funds received by
the board, whether in the form of direct payments, payroll deductions or otherwise, shall
be accounted for separately from all other funds of the retirement system and shall be paid
into the optional death benefit plan reserve fund, from which the board is authorized to
make the appropriate payments and to pay the ongoing costs of administration of such
optional death benefit plan as may be incurred in carrying out the provisions of this sub-
section (6).

(7) Any employer other than the state of Kansas which is currently a participating em-
ployer of the Kansas public employees retirement system or is in the process of affiliating
with the Kansas public employees retirement system may also elect to affiliate for the pur-
poses of subsection (6). All such employers shall make application for affiliation with such
system, to be effective on January 1 next following application. Such optional death benefit
plan shall not be available for employees of employers specified under this subsection until
after July 1, 1988.

Sec. 30. K.S.A. 1997 Supp. 74-4936a, as amended by section 63 of 1998 Senate Bill
No. 382, is hereby amended to read as follows: 74-4936a. Any employee of a participating
employer who is a member of the Kansas public employees retirement system, who was
previously employed in a teaching position with a public school system of another state, in
a foreign teaching service in an overseas dependents' school, in a recognized teacher
exchange program or in any program where a teacher is chosen by the Kansas department
of education to teach in a foreign country and which service otherwise meets the require-
ments of an employee as prescribed in subsection (14) of K.S.A. 74-4902 or subsection (4)
of K.S.A. 74-4932 and amendments thereto may elect to purchase ~~prior~~ service for such
out-of-state public school or overseas teaching employment. At the election of the member,
the benefit for each such year of employment shall be equal to either 1% or 1.75% of the
final average salary of any such member. For any member who elected to purchase service
credit as provided in this section prior to the effective date of this act at the 1% rate, such
member may elect to purchase such service credit at an additional amount of .75% of final
average salary of such member in a lump-sum amount as otherwise provided in this sub-
section. Subject to the provisions of section 83 and amendments thereto, such member may
purchase such ~~prior~~ service credit by making application therefor prior to date of retirement
at an additional rate of contribution in addition to the employee's rate of contribution as
provided in K.S.A. 74-4919 and amendments thereto, based upon the member's attained
age at the time of purchase and using actuarial assumptions and tables in use by the retire-
ment system at the time of such purchase. Such additional rate of contribution shall com-
mence at the beginning of the quarter following such election and shall remain in effect
until all quarters of such service have been purchased. Subject to the provisions of section
83 and amendments thereto, any such member may purchase such ~~prior~~ service credit as
described in this section by electing to effect such purchase by means of a single lump-sum
payment in lieu of employee contributions as provided in this section in an amount equal
to the then present value of the benefits being purchased as determined by the actuary
using the member's attained age, annual compensation at the time of purchase and the
actuarial assumptions and tables then in use by this system. The lump-sum payment shall
be made immediately upon being notified of the amount due.

Sec. 31. K.S.A. 1997 Supp. 74-4937 is hereby amended to read as follows: 74-4937. (1)
The normal retirement date of a member of the system who is in school employment and
who is subject to K.S.A. 74-4940 and amendments thereto shall be the first day of the month
coinciding with or following termination of employment not followed by employment with
any participating employer within 30 days and the end of the school fiscal year in which
the member attains age 65 or, commencing July 1, 1986, age 65 or age 60 with the com-
pletion of 35 years of credited service or at any age with the completion of 40 years of
credited service, or commencing July 1, 1993, any alternative normal retirement date already
prescribed by law or age 62 with the completion of 10 years of credited service or the first
day of the month coinciding with or following the date that the total of the number of years
of credited service and the number of years of attained age of the member is equal to or
more than 85. Each member upon giving prior notice to the appointing authority and the
retirement system may retire on the normal retirement date or the first day of any month
thereafter.

(2) Any member who is in school employment and who is subject to K.S.A. 74-4940
and amendments thereto may retire before such member's normal retirement date on the
first day of the month coinciding with or following termination of employment not followed
by employment with any participating employer within 30 days and the completion of the
school fiscal year in which such member attained age 55 with the completion of 10 years of
credited service, upon the filing with the office of the retirement system of an application
for retirement in such form and manner as the board shall prescribe.

(3) No member who begins a year of school employment and who is subject to K.S.A.
74-4940 and amendments thereto may retire until the first day of the month coinciding with
or following the end of the current school fiscal year unless good cause is shown and such
retirement is agreed to by the participating employer and the board.

(4) As used in this section ``school fiscal year'' means the twelve-month period beginning
July 1 and ending June 30.

Sec. 32. K.S.A. 1997 Supp. 74-4939 is hereby amended to read as follows: 74-4939. (1)
Except as otherwise provided in this section, the provisions of K.S.A. 74-4919 and 74-4920,
and amendments thereto, shall apply to employee and employer contributions and obliga-
tions.

(2) The employer contribution rate for participating employers who are eligible em-
ployers as specified in subsections (1), (2) and (3) of K.S.A. 74-4931 and amendments thereto
shall be as certified by the board. Participating employers shall certify to the state board of
education before September 15 of each year the anticipated total compensation to be paid
during the next fiscal year to employees who are or are to become members. The state
board of education shall transmit the information necessary to the division of the budget
and the governor who shall include in the budget and budget document each year thereafter
provisions for the transfer from the state general fund of sufficient sums to satisfy the
participating employer's obligation under this act. The director of accounts and reports shall
make a transfer therefor to the system quarterly, at the same time such employee contri-
butions are remitted by such participating employers. Such transfer from the general fund
of sufficient sums to satisfy the participating employer's obligation shall not include any
adjustments for individual employee's service in prior periods and any required payment
by a participating employer pursuant to K.S.A. 74-4990 and amendments thereto and section
52 and amendments thereto. The employer's obligation for such adjustments shall be paid
by the participating employer. Transfers required by this subsection shall be provided for
annually by act of the legislature.

(3) Participating employers who are eligible employers as specified in subsection (4) of
K.S.A. 74-4931 and amendments thereto shall pay to the system employer contributions at
a rate of contribution as certified by the board.

(4) Upon the effective date of this act, the transfers for the employer's obligation pur-
suant to subsection (2) for the quarter commencing on January 1, 1987, shall be made on
July 1, 1987, together with interest thereon at the rate of 6.72% per annum from the date
the payment would have been made as provided in this section immediately prior to this
amendment until the date paid.'';

Sec. 33. K.S.A. 1997 Supp. 74-4952, as amended by section 65 of 1998 Senate Bill No.
382, is hereby amended to read as follows: 74-4952. As used in K.S.A. 74-4951 et seq. and
amendments thereto:

(1) ``Accumulated contributions'' means the sum of all contributions by a member to
the system which shall be credited to the member's account with interest allowed thereon
after June 30, 1982.

(2) ``Disability'' means the total inability to perform permanently the duties of the po-
sition of a policeman or fireman.

(3) ``Eligible employer'' means any city, county, township or other political subdivision
of the state employing one or more employees as firemen or policemen.

(4) ``Employee'' means any policeman or fireman employed by a participating employer
whose employment for police or fireman purposes is not seasonal or temporary and requires
at least 1,000 hours of work per year.

(5) ``Entry date'' means the date as of which an eligible employer joins the system; the
first entry date pursuant to this act is January 1, 1967.

(6) ``Final average salary'' means:

(a) For members who are first hired as an employee, as defined in subsection (4), before
July 1, 1993, the average highest annual compensation paid to a member for any three of
the last five years of participating service immediately preceding retirement or termination
of employment, or if participating service is less than three years, then the average annual
compensation paid to the member during the full period of participating service, or if a
member has less than one calendar year of participating service, then the member's final
average salary shall be computed by multiplying the member's highest monthly salary re-
ceived in that year by 12;

(b) for members who are first hired as an employee, as defined in subsection (4), on
and after July 1, 1993, the average highest annual salary, as defined in subsection (34) of
K.S.A. 74-4902 and amendments thereto, paid to a member for any three of the last five
years of participating service immediately preceding retirement or termination of employ-
ment, or if participating service is less than three years, then the average annual salary, as
defined in subsection (34) of K.S.A. 74-4902 and amendments thereto, paid to the member
during the full period of participating service, or if a member has less than one calendar
year of participating service, then the member's final average salary shall be computed by
multiplying the member's highest monthly salary received in that year by 12;

(c) for purposes of subparagraphs (a) and (b) of this subsection, the date that such
member is first hired as an employee for members who are employees of employers that
elected to participate in the system on or after January 1, 1994, shall be the date that such
employee's employer elected to participate in the system; and

(d) for any application to purchase or repurchase service credit for a certain period of
service as provided by law received by the system after May 17, 1994, for any member who
will have contributions deducted from such member's compensation at a percentage rate
equal to two or three times the employee's rate of contribution or who will have contribu-
tions deducted from such member's compensation at an additional rate of contribution, in
addition to the employee's rate of contribution as provided in K.S.A. 74-4919 and amend-
ments thereto or will begin paying to the system a lump-sum amount for such member's
purchase or repurchase, and such deductions or lump-sum payment commences after the
commencement of the first payroll period in the third quarter, ``final average salary'' shall
not include any amount of compensation or salary which is based on such member's pur-
chase or repurchase. Any application to purchase or repurchase multiple periods of service
shall be treated as multiple applications.

(e) Notwithstanding any other provision of this section, for purposes of applying limits
as provided by the federal internal revenue code, salary shall have the meaning as deter-
mined pursuant to section 83 and amendments thereto.

(7) ``Retirement benefit'' means a monthly income or the actuarial equivalent thereof
paid in such manner as specified by the member as provided under the system or as oth-
erwise allowed to be paid at the discretion of the board, with benefits accruing from the
first day of the month coinciding with or following retirement and ending on the last day of
the month in which death occurs. Upon proper identification such surviving spouse may
negotiate the warrant issued in the name of the retirant.

(8) ``Normal retirement date'' means the date on or after which a member may retire
with eligibility for retirement benefits for age and service as provided in subsections (1) and
(3) of K.S.A. 74-4957 and amendments thereto;

(9) ``Retirement system'' or ``system'' means the Kansas police and firemen's retirement
system as established by this act and as it may be hereafter amended.

(10) ``Service-connected'' means with regard to a death or any physical or mental dis-
ability, any such death or disability resulting from external force, violence or disease occa-
sioned by an act of duty as a policeman or fireman and, for any member after five years of
credited service, ~~includes~~ there shall be a rebuttable presumption, that any death or disability
resulting from a heart disease or disease of the lung or respiratory tract or cancer as provided
in this subsection, except that in the event that the member ceases to be a contributing
member ~~except~~ by reason of a service-connected disability for a period of six months or
more and then again becomes a contributing member, the provision relating to death or
disability resulting from a heart disease, disease of the lung or respiratory tract or cancer as
provided in this subsection shall not apply until such member has again become a contrib-
uting member for a period of not less than two years or unless clear and precise evidence
is presented that the heart disease, disease of the lung or respiratory tract or cancer as
provided in this subsection was in fact occasioned by an act of duty as a policeman or
fireman. If the retirement system receives evidence to the contrary of such presumption, the
burden of proof shall be on the member or other party to present evidence that such death
or disability was service-connected. The provisions of this section relating to the presumption
that the death or disability resulting from cancer is service-connected shall only apply if the
condition that caused the death or disability is a type of cancer which may, in general, result
from exposure to heat, radiation or a known carcinogen.

(11) Prior to July 1, 1998, ``fireman'' or ``firemen'' means an employee assigned to the
fire department and engaged in the fighting and extinguishment of fires and the protection
of life and property therefrom or in support thereof and who is specifically designated,
appointed, commissioned or styled as such by the governing body or city manager of the
participating employer and certified to the retirement system as such. On and after July 1,
1998, ``fireman'' or ``firemen'' means an employee assigned to the fire department whose
principal duties are engagement in the fighting and extinguishment of fires and the protection
of life and property therefrom and who is specifically designated, appointed, commissioned
or styled as such by the governing body or city manager of the participating employer and
certified to the retirement system as such.

(12) Prior to July 1, 1998, ``police,'' ``policeman'' or ``policemen'' means an employee
assigned to the police department and engaged in the enforcement of law and maintenance
of order within the state and its political subdivisions, including sheriffs and sheriffs' dep-
uties, or in support thereof and who is specifically designated, appointed, commissioned or
styled as such by the governing body or city manager of the participating employer and
certified to the retirement system as such. On and after July 1, 1998, ``police,'' ``policeman''
or ``policemen'' means an employee assigned to the police department whose principal duties
are engagement in the enforcement of law and maintenance of order within the state and its
political subdivisions, including sheriffs and sheriffs' deputies; who has successfully com-
pleted the required course of instruction for law enforcement officers approved by the Kansas
law enforcement training center and is certified pursuant to the provisions of K.S.A. 74-
5607a and amendments thereto; and who is specifically designated, appointed, commissioned
or styled as such by the governing body or city manager of the participating employer and
certified to the retirement system as such. Notwithstanding any other provisions of this
subsection, ``police,'' ``policeman'' or ``policemen'' shall include a city or county correctional
officer who is specifically designated, appointed, commissioned or styled as such by the
governing body or city manager of the participating employer and certified to the retirement
system as such commencing on July 1, 1998, and ending on June 30, 1999.

(13) Except as otherwise defined in this act, words and phrases used in K.S.A. 74-4951
et seq. and amendments thereto, shall have the same meanings ascribed to them as are
defined in K.S.A. 74-4902 and amendments thereto.

Sec. 34. K.S.A. 74-4955a is hereby amended to read as follows: 74-4955a. (1) Except
as provided in subsection (4), each member of the system who was appointed or employed
prior to July 1, 1989, may elect to be covered by the provisions of K.S.A. 74-4957a, 74-
4958a, 74-4960a, 74-4963a and 74-4964a, and amendments thereto, on the first day of the
first payroll period of such member coinciding with or following the receipt of such election
in the office of the retirement system, only by filing with the board of trustees of the system
prior to January 1, 1990, a written election to be covered by such provisions. Failure to file
such written election shall be presumed to be an election not to be covered by such pro-
visions. Such election, whether to become a member or not to become a member, shall be
irrevocable.

(2) Each person appointed or employed on or after July 1, 1989, shall be covered by
the provisions of K.S.A. 74-4957a, 74-4958a, 74-4960a, 74-4963a and 74-4964a, and amend-
ments thereto.

(3) The provisions of this section shall be effective on and after July 1, 1989.

(4) Each member of the system who was appointed or employed prior to July 1, 1989,
and who did not elect to be covered by the provisions specified in subsection (1) prior to
January 1, 1990, may elect to be covered by such provisions by filing a written election as
provided in subsection (1) during the period commencing July 1, 1990, and ending Septem-
ber 30, 1990.

(5) Except as provided in this subsection, each member of the system who was appointed
or employed prior to July 1, 1989, and who did not elect to be covered by the provisions
specified in subsection (1) as provided in this section, may elect to be covered by such
provisions by filing a written election as provided in subsection (1). The provisions of this
subsection shall take effect on and after the date the system receives a private letter ruling
from the internal revenue service that the provisions of this subsection do not contravene
federal law. The period of such election as provided by this subsection shall commence on
the date of receipt by the system of such private letter ruling, and shall end 90 days thereafter.
Any member who elects as provided by this subsection shall pay the cost of such election by
means of a single lump-sum payment in an amount equal to the then present value of the
benefits being purchased as determined by the actuary using the member's attained age,
annual compensation at the time of the purchase and the actuarial assumptions and tables
then in use by the system.

Sec. 35. K.S.A. 1997 Supp. 74-4956, as amended by section 68 of 1998 Senate Bill No.
382, is hereby amended to read as follows: 74-4956. (1) Prior service shall be credited as
follows:

(a) Each member shall receive:

(i) Full credit for all employment, whether or not continuous, as either a policeman or
fireman prior to the entry date with such member's employer who is such member's em-
ployer on the entry date;

(ii) full credit for all employment, whether or not continuous, as either a police or
fireman prior to the entry date of such police or firemen's employer, with a participating
employer, if such member has at least 20 years of credited service; and

(iii) for all continuous employment with the same employer other than either as police-
man or fireman, immediately preceding such service as a policeman or fireman, ~~12 months~~
one month of credit for each 24 two months of service. Any member or retirant who has
been credited with prior service as provided in this section may apply to the board on such
forms as the board prescribes for prior service credit with a participating employer under
the Kansas police and firemen's retirement system other than such member's entry date
employer. Each member shall receive full credit for all employment as either a policeman
or fireman with such other participating employers and shall receive ~~12 months~~ one month
of credit for each 24 two months of continuous service with other participating employers
for continuous employment preceding service as a policeman or fireman. Upon receipt of
written verification of such employment from such other participating employer, the board
may grant such additional prior service credit. With respect to a retirant, the board shall
adjust the amount of the retirement benefit accordingly commencing with the next monthly
benefit payment due following receipt of written verification. In the case of any person other
than a retirant receiving a retirement benefit, such person may make application for an
adjustment in the benefit amount in the same manner as a member or retirant, and in such
case the adjustment in the benefit amount shall be determined by the board upon the advice
of the actuary, and shall commence with the next monthly benefit payment due following
receipt of written verification, except that no additional prior service credit shall be granted
for any service with another participating employer for which benefits are being received
or will be received. A retirant or any other person receiving a retirement benefit shall not
be entitled to any retroactive adjustment in the amount of retirement benefit as a result of
the board granting such additional prior service credit.

If a member was employed as a fireman, other than as a volunteer fireman, by a township
which is annexed by a participating employer the member's retirement benefits and death
and disability benefits shall be computed on the basis of credited service. Continuous service
as a fireman with a township prior to annexation by a member, who became a member
immediately following the annexation, shall be considered credited service.

No such service shall be considered credited service for the purpose of computing years
of service if such fireman is receiving or will become eligible to receive benefits as a result
of such service with the township.

(b) Leaves of absence and military service shall not be counted as breaks in continuous
employment; however, military service which is preceded within 30 days and followed by
employment with a participating employer shall be credited, except that after July 1, 1974,
not more than five years credit for military service shall be granted hereunder to the extent
required by the provisions of USERRA, but leaves of absence shall not be credited.

(2) Participating service shall be credited as follows: (a) A member shall receive credit
for participating service with a participating employer in accordance with the rules and
regulations established by the board. No more than one calendar quarter of participating
service shall be credited for employment within any one calendar quarter.

(b) Leaves of absence shall not be counted as a termination of employment provided
the member leaves such member's accumulated contributions on deposit with the system
and returns to employment with the employer granting such leave; however, the period of
leave of absence shall not be credited service.

(c) To the extent required under the provisions of USERRA, military service shall not
count as a break in continuous employment.

(d) Termination of employment with a participating employer followed by employment
with the same or another participating employer within two years shall not constitute a
termination of membership provided the member leaves such member's accumulated con-
tributions on deposit with the system; however, the period while not employed shall not be
credited.

(3) In determining the number of years of credited service for calculation of retirement
benefits a fractional year of six months or more of credited service shall be considered as
one year and a fractional year of less than six months of credited service shall be disregarded.

Sec. 36. K.S.A. 1997 Supp. 74-4957 is hereby amended to read as follows: 74-4957. (1)
The normal retirement date for a member of the system who is appointed or employed
prior to July 1, 1989, and who does not make an election pursuant to K.S.A. 74-4955a and
amendments thereto shall be the first day of the month coinciding with or following termi-
nation of employment not followed by employment with any participating employer within
30 days and the attainment of age 55 and the completion of 20 years of credited service.
Any member may retire on such member's normal retirement date or on the first day of
any month thereafter.

(2) Early retirement. Any member who is appointed or employed prior to July 1, 1989,
and who does not make an election pursuant to K.S.A. 74-4955a and amendments thereto
may retire before such member's normal retirement date on the first day of any month
coinciding with or following termination of employment not followed by employment with
any participating employer within 30 days and the attainment of age 50 and the completion
of 20 years of credited service.

(3) Notwithstanding the provisions of subsections (1) and (2) of this section and K.S.A.
74-4955a, 74-4957a, 74-4958a, 74-4960a, 74-4963a and 74-4964a and amendments thereto,
the normal retirement date for any member who was, up to the entry date of such member's
employer, covered by a pension system under the provisions of K.S.A. 13-14a01 to 13-14a14,
inclusive, or 14-10a01 to 14-10a15, inclusive, and amendments thereto, shall be the first
day of the month coinciding with or following the attainment of age 50 and the completion
of 25 years of credited service.

(4) In no event shall a member be eligible to retire until such member has been a
contributing member of the system for 12 months of participating service, and shall have
given such member's employer prior notice of retirement.

(5) If a retirant who retired on or after July 1, 1994, is employed, elected or appointed
in or to any position or office for which compensation for service is paid~~, during calendar~~
~~year 1994, in an amount equal to $11,160 or more; or during calendar year 1995 and all~~
~~calendar years thereafter,~~ in an amount equal to ~~$11,280~~ $15,000 or more in any one such
calendar year, by the same state agency or the same police or fire department of any county,
city, township or special district or the same sheriff's office of a county during the final two
years of such retirant's participation, such retirant shall not receive any retirement benefit
for any month for which such retirant serves in such position or office. The participating
employer shall report to the system within 30 days of when the compensation paid to the
retirant is equal to or exceeds any limitation provided by this section. Any retirant employed
by a participating employer in the Kansas police and firemen's retirement system shall not
make contributions nor receive additional credit under such system for such service except
as provided by this section. Upon request of the executive secretary of the system, the
secretary of revenue shall provide such information as may be needed by the executive
secretary to carry out the provisions of this act.

Sec. 37. K.S.A. 1997 Supp. 74-4957a is hereby amended to read as follows: 74-4957a.
(1) The normal retirement date for a member of the system who is appointed or employed
on or after July 1, 1989, or who makes an election pursuant to K.S.A. 74-4955a and amend-
ments thereto to be covered by the provisions of this act shall be the first day of the month
coinciding with or following termination of employment not followed by employment with
any participating employer within 30 days and the attainment of age 55 and the completion
of 20 years of credited service, age 50 and the completion of 25 years of credited service or
age 60 with the completion of 15 years of credited service. Any such member may retire on
such member's normal retirement date or on the first day of any month thereafter.

(2) Any member may retire before such member's normal retirement date on the first
day of any month coinciding with or following termination of employment not followed by
employment with any participating employer within 30 days and the attainment of age 50
and the completion of 20 years of credited service.

(3) In no event shall a member be eligible to retire until such member has been a
contributing member of the system for 12 months of participating service, and shall have
given such member's employer prior notice of retirement.

(4) If a retirant who retired on or after July 1, 1996, is employed, elected or appointed
in or to any position or office for which compensation for service is paid~~, during calendar~~
~~year 1995 and all calendar years thereafter,~~ in an amount equal to ~~$11,280~~ $15,000 or more
in any one such calendar year, by the same state agency or the same police or fire department
of any county, city, township or special district or the same sheriff's office of a county during
the final two years of such retirant's participation, such retirant shall not receive any retire-
ment benefit for any month for which such retirant serves in such position or office. The
participating employer shall report to the system within 30 days of when the compensation
paid to the retirant is equal to or exceeds any limitation provided by this section. Any retirant
employed by a participating employer in the Kansas police and firemen's retirement system
shall not make contributions nor receive additional credit under such system for such service
except as provided by this section. Upon request of the executive secretary of the system,
the secretary of revenue shall provide such information as may be needed by the executive
secretary to carry out the provisions of this act.

(5) The provisions of this section shall be effective on and after July 1, 1989, and shall
apply only to members who were appointed or employed prior to July 1, 1989, and who
made an election pursuant to K.S.A. 74-4955a and amendments thereto; and persons ap-
pointed or employed on or after July 1, 1989.

Sec. 38. K.S.A. 1997 Supp. 74-4960, as amended by section 72 of 1998 Senate Bill No.
382, is hereby amended to read as follows: 74-4960. (1) If any active contributing member
becomes totally and permanently disabled due to service-connected causes as defined in
subsection (10) of K.S.A. 74-4952 and amendments thereto, such member shall be retired
and the following benefits shall become payable and shall continue until the member's death
or until the member recovers from the disability if: A report of the event in a form acceptable
to the board is filed in the office of the executive secretary of the board within 220 days
after the date of the event or act of duty causing such disability; and an application for such
benefit, in such form and manner as the board prescribes, is filed by the member or the
member's authorized representative in the office of the executive secretary of the board
within two years of the date of disability:

(a) On and after July 1, 1993, the member shall receive a retirement benefit equal to
50% of the member's final average salary or, if the member has no dependents, as defined
in subsection (1)(b), the retirement benefit the member would have been entitled to as
provided under K.S.A. 74-4958 and amendments thereto had the member retired, which-
ever is greater. Such benefit shall accrue from the day upon which the member ceases to
draw compensation.

(b) Each of the member's children under the age of 18 years or each of the member's
children under the age of 23 years who is a full-time student as provided in K.S.A. 74-49,117
and amendments thereto shall receive an annual benefit equal to 10% of the member's final
average salary. Such benefit shall accrue from the day upon which the member ceases to
draw compensation and shall end on the last day of the month in which each such child or
children shall attain the age of 18 years or die, whichever occurs earlier or in which such
children attain the age of 23 years, if such child is a full-time student as provided in K.S.A.
74-49,117 and amendments thereto. Commencing on the effective date of this act, any child
who was receiving benefits pursuant to this section and who had such benefits terminated
by reason of such child's marriage, shall be entitled to once again receive benefits pursuant
to this section subject to the limitations contained in this section, except that such child shall
not be entitled to recover any benefits not received after the termination of benefits by
reason of such child's marriage but before the effective date of this act.

(c) In no case shall the total of the benefits payable under paragraphs (a) and (b) of this
subsection (1) be in excess of 75% of the member's final average salary.

(d) In the event a member who is retired under subsection (1) dies within two years
after the date of such retirement and no benefits are payable under subsection (3) of K.S.A.
74-4958 and amendments thereto, then benefits may be payable under subsection (1) of
K.S.A. 74-4959 and amendments thereto.

(e) In the event a member who is retired under subsection (1) dies more than two years
after the date of such retirement, and the proximate cause of such death is the service-
connected cause from which the disability resulted and no benefits are payable under sub-
section (3) of K.S.A. 74-4958 and amendments thereto, then benefits may be payable under
subsection (1) of K.S.A. 74-4959 and amendments thereto. The provisions of this paragraph
(e) of this subsection (1) shall apply in all cases of such members who die after June 30,
1978.

(f) In the event a member who is retired under subsection (1) dies after the date of
such retirement, and no benefits are payable under paragraphs (d) and (e) of subsection
(1), nor under subsection (3) of K.S.A. 74-4958 and amendments thereto, the following
benefits shall be payable:

(i) To the member's spouse, if lawfully wedded to the member at the time of the mem-
ber's death, a lump-sum benefit equal to 50% of the member's final average salary at the
time of the member's retirement.

(ii) To the member's spouse, if lawfully wedded to the member at the time of the
member's death, an annual benefit equal to 50% of the member's retirement benefit payable
in monthly installments, to accrue from the first day of the month following the member's
date of death and ending on the last day of the month in which the spouse dies. Commencing
on the effective date of this act, any surviving spouse, who was receiving benefits pursuant
to this section and who had such benefits terminated by reason of such spouse's remarriage,
shall be entitled to once again receive benefits pursuant to this section, except that such
surviving spouse shall not be entitled to recover any benefits not received after the termi-
nation of benefits by reason of such surviving spouse's remarriage but before the effective
date of this act. If there is no surviving spouse, or if after the death of the spouse there
remain one or more children under the age of 18 years or one or more children under the
age of 23 years who is a full-time student as provided in K.S.A. 74-49,117 and amendments
thereto, the annual spouse's benefit shall be payable, subject to the provisions of section 83
and amendments thereto, in equal shares to such children and each child's share shall end
on the last day of the month in which such child attains the age of 18 years or dies, whichever
occurs earlier or in which such child attains the age of 23 years, if such child is a full-time
student as provided in K.S.A. 74-49,117 and amendments thereto. Commencing on the
effective date of this act, any child who was receiving benefits pursuant to this section and
who had such benefits terminated by reason of such child's marriage, shall be entitled to
once again receive benefits pursuant to this section subject to the limitations contained in
this section, except that such child shall not be entitled to recover any benefits not received
after the termination of benefits by reason of such child's marriage but before the effective
date of this act.

The provisions of paragraph (f) of subsection (1) shall apply in all cases of such members
who die after December 1, 1984.

(2) (a) If any active contributing member, prior to such member's normal retirement,
becomes totally and permanently disabled for a period of 180 days from causes not service-
connected, and not as the result of a willfully negligent or intentional act of the member,
such member shall be retired and the following benefit shall become payable and shall
continue until the member's death or until the member recovers from such disability, which-
ever occurs first, if a report of the disability in a form acceptable to the board is filed in the
office of the executive secretary of the board within 220 days after the date of the com-
mencement of such disability and if an application for such benefit in such form and manner
as the board shall prescribe is filed in the office of the executive secretary of the board
within two years of the date of disability:

A retirement benefit equal to 2.5% of the member's final average salary multiplied by
the number of years of credited service or the retirement benefit the member would have
been entitled to as provided under K.S.A. 74-4958 and amendments thereto had the member
retired, whichever is greater, multiplied by the number of years of credited service except
that such retirement benefit shall be at least equal to 25% of the member's final average
salary but shall not exceed the amount of the retirement benefit provided in paragraph (a)
of subsection (1). Such benefit shall not become payable until satisfactory evidence shall be
presented to the board that the member is and has been totally and permanently disabled
for a period of 180 days, but benefits shall accrue from the day upon which the member
ceases to draw compensation.

(b) In the event a member who is retired under subsection (2) dies after the date of
such retirement, and no benefits are payable under subsection (3) of K.S.A. 74-4958 and
amendments thereto, the following benefits shall be payable:

(i) To the member's spouse, if lawfully wedded to the member at the time of the mem-
ber's death, a lump-sum benefit equal to 50% of the member's final average salary at the
time of the member's retirement.

(ii) To the member's spouse, if lawfully wedded to the member at the time of the
member's death, an annual benefit equal to 50% of the member's retirement benefit payable
in monthly installments, to accrue from the first day of the month following the member's
date of death and ending on the last day of the month in which the spouse dies. Commencing
on the effective date of this act, any surviving spouse, who was receiving benefits pursuant
to this section and who had such benefits terminated by reason of such spouse's remarriage,
shall be entitled to once again receive benefits pursuant to this section, except that such
surviving spouse shall not be entitled to recover any benefits not received after the termi-
nation of benefits by reason of such surviving spouse's remarriage but before the effective
date of this act. If there is no surviving spouse, or if after the death of the spouse there
remain one or more children under the age of 18 years or one or more children under the
age of 23 years who are full-time students as provided in K.S.A. 74-49,117 and amendments
thereto, the annual spouse's benefit shall be payable, subject to the provisions of section 83
and amendments thereto, in equal shares to such children and each child's share shall end
on the last day of the month in which such child attains the age of 18 years or dies, whichever
occurs earlier or in which such child attains the age of 23 years, if such child is a full-time
student as provided in K.S.A. 74-49,117 and amendments thereto. Commencing on the
effective date of this act, any child who was receiving benefits pursuant to this section and
who had such benefits terminated by reason of such child's marriage, shall be entitled to
once again receive benefits pursuant to this section subject to the limitations contained in
this section, except that such child shall not be entitled to recover any benefits not received
after the termination of benefits by reason of such child's marriage but before the effective
date of this act.

The provisions of paragraph (b) of subsection (2) shall apply in all cases of such members
who die after July 1, 1989.

(3) Any member who was employed for compensation by an employer other than the
member's participating employer and whose disability was incurred in the course of such
other employment shall not be eligible for any of the benefits provided in subsection (2).

(4) If a member becomes totally and permanently disabled and no benefits are payable
under subsection (1) or (2), the sum of the member's accumulated contributions shall be
paid to the member.

(5) Any member receiving benefits under this section shall submit to medical exami-
nation, not ~~oftener~~ more frequent than annually, by one or more physicians or any other
practitioners of the healing arts holding a valid license issued by Kansas state board of healing
arts, as the board of trustees may direct. If upon such medical examination, the examiner's
report to the board states that the retirant is physically able and capable of resuming em-
ployment with the same or a different participating employer ~~from whose employment such~~
~~member retired~~, the disability benefits shall terminate. A retirant who has been receiving
benefits under the provisions of this section and who returns to employment, as defined in
subsection (4) of K.S.A. 74-4952 and amendments thereto, of a participating employer shall
immediately commence accruing service credit which shall be added to that which has been
accrued by virtue of previous service.

(6) Any retirant who has been receiving benefits under the provisions of this section for
a period of five years shall be deemed finally retired and shall not be subject to further
medical examinations, except that if the board of trustees shall have reasonable grounds to
question whether the retirant remains totally and permanently disabled, a further medical
examination or examinations may be required.

(7) Refusal or neglect to submit to examination as provided in subsection (5) shall be
sufficient cause for suspending or discontinuing benefit payments under this section and if
such refusal or neglect shall continue for a period of one year, the member's rights in and
to all benefits under this system may be revoked by the board.

(8) Any retirement benefits payable under the provisions of this section shall be in lieu
of normal retirement benefits as provided in subsections (1) and (2) of K.S.A. 74-4958 and
amendments thereto.

(9) Each member shall report to such member's participating employer any event or
act of duty causing disability within 200 days after such event or act of duty. The member's
participating employer shall file in the office of the executive secretary of the board, in a
form acceptable to the board, a report of the event or act of duty causing disability within
220 days after the event or act of duty.

(10) In any case of any event occurring prior to July 1, 1979, and after June 30, 1998,
for which a report of the event was made by the participating employer to the director of
workers' compensation in accordance with K.S.A. 44-557 and amendments thereto, such
report to the director of workers' compensation shall satisfy the requirement under subsec-
tion (1) of this section to file a report of such event, in a form acceptable to the board within
220 days. No such report to the director of workers' compensation shall be deemed to satisfy
such requirement with respect to events occurring on or after July 1, 1979, and prior to
July 1, 1998.

(11) All payments due under this section to a minor shall be made to a legally appointed
conservator of such minor.

(12) The provisions of this section shall apply only to members who were appointed or
employed prior to July 1, 1989, and who did not make an election pursuant to K.S.A. 74-
4955a and amendments thereto.

(13) Any retirant who has been receiving benefits under the provisions of this section
and who returns to employment with the same or different participating employer in the
system shall be deemed no longer retired.

Sec. 39. K.S.A. 1997 Supp. 74-4960a, as amended by section 73 of 1998 Senate Bill
No. 382, is hereby amended to read as follows: 74-4960a. (1) If any active contributing
member who is appointed or employed on or after July 1, 1989, or who makes an election
pursuant to K.S.A. 74-4955a and amendments thereto to be covered by the provisions of
this act becomes disabled as defined in subsection (2), such member shall receive a monthly
benefit equal to 50% of the member's final average salary at the time such member was
disabled payable in monthly installments, accruing from the first day upon which the mem-
ber ceases to draw compensation, if a report of the disability in such form and manner as
the board shall prescribe is filed in the office of the executive secretary of the board within
220 days after the date of the commencement of such disability and if an application for
such benefit in such form and manner as the board shall prescribe is filed in the office of
the executive secretary of the board within two years of the date of the commencement of
such disability.

(2) For the purposes of this section, ``disabled'' means total inability to perform per-
manently the duties of the position of policeman or fireman.

(3) In the event a member who is disabled and entitled to such benefits as provided in
subsection (1) dies after the date of such disability, and no benefits are payable under
subsection (3) of K.S.A. 74-4958 and amendments thereto, the following benefits shall be
payable:

(i) To the member's spouse, if lawfully wedded to the member at the time of the mem-
ber's death, a lump-sum benefit equal to 50% of the member's final average salary at the
time such member was disabled.

(ii) To the member's spouse, if lawfully wedded to the member at the time of the
member's death, an annual benefit equal to 50% of the member's benefit payable in monthly
installments, to accrue from the first day of the month following the member's date of death
and ending on the last day of the month in which the spouse dies. Commencing on the
effective date of this act, any surviving spouse, who was receiving benefits pursuant to this
section and who had such benefits terminated by reason of such spouse's remarriage, shall
be entitled to once again receive benefits pursuant to this section, except that such surviving
spouse shall not be entitled to recover any benefits not received after the termination of
benefits by reason of such surviving spouse's remarriage but before the effective date of this
act. If there is no surviving spouse, or if after the death of the spouse there remain one or
more children under the age of 18 years or one or more children under the age of 23 years
who is a full-time student as provided in K.S.A. 74-49,117 and amendments thereto, the
annual spouse's benefit shall be payable, subject to the provisions of section 83 and amend-
ments thereto, in equal shares to such children and each child's share shall end on the last
day of the month in which such child attains the age of 18 years or dies, whichever occurs
earlier or in which such child attains the age of 23 years, if such child is a full-time student
as provided in K.S.A. 74-49,117 and amendments thereto. Commencing on the effective
date of this act, any child who was receiving benefits pursuant to this section and who had
such benefits terminated by reason of such child's marriage, shall be entitled to once again
receive benefits pursuant to this section subject to the limitations contained in this section,
except that such child shall not be entitled to recover any benefits not received after the
termination of benefits by reason of such child's marriage but before the effective date of
this act.

(4) Any member who was employed for compensation by an employer other than the
member's participating employer and whose disability was incurred in the course of such
other employment shall not be eligible for any of the benefits provided in subsection (1) or
(3).

(5) If a member becomes totally and permanently disabled and no benefits are payable
under subsection (1), the sum of the member's accumulated contributions shall be paid to
the member.

(6) Any member receiving benefits under this section shall submit to medical exami-
nation, not ~~oftener~~ more frequent than annually, by one or more physicians or any other
practitioners of the healing arts holding a valid license issued by Kansas state board of healing
arts, as the board of trustees may direct. If upon such medical examination, the examiner's
report to the board states that the member is physically able and capable of resuming
employment with the same or a different participating employer ~~from whose employment~~
~~such member was employed prior to such member's disability~~, the disability benefits shall
terminate. A member who has been receiving benefits under the provisions of this section
and who returns to employment, as defined in subsection (4) of K.S.A. 74-4952 and amend-
ments thereto, of a participating employer shall immediately commence accruing service
credit which shall be added to that which has been accrued by virtue of previous service.

(7) Any member who has been receiving benefits under the provisions of this section
for a period of five years shall be deemed permanent and shall not be subject to further
medical examinations, except that if the board of trustees shall have reasonable grounds to
question whether the member remains totally and permanently disabled, a further medical
examination or examinations may be required.

(8) Refusal or neglect to submit to examination as provided in subsection (6) shall be
sufficient cause for suspending or discontinuing benefit payments under this section and if
such refusal or neglect shall continue for a period of one year, the member's rights in and
to all benefits under this system may be revoked by the board.

(9) In the event that a member becomes disabled and is eligible for benefits provided
in this section, such member shall be given participating service credit for the entire period
of such disability.

(10) Any member who is receiving benefits pursuant to this section shall file annually a
statement of earnings for the previous year in such form and manner as the board shall
prescribe. Any disability benefit paid to a member entitled to such benefit pursuant to this
section shall be reduced by the board in an amount equal to a $1 reduction in such benefit
for every $2 of earnings of such member which were earned during the previous year while
such member was disabled. Such reduction shall apply only to a member's earnings which
exceed $10,000.

(11) Any benefits provided pursuant to this section and any participating service credit
given pursuant to subsection (9) shall terminate upon the earliest date such member is
eligible for retirement upon attainment of the normal retirement date as provided in K.S.A.
74-4964a and amendments thereto.

(12) Any member who has received benefits under the provisions of this section for a
period of five years or more immediately preceding retirement shall have such member's
final average salary adjusted upon retirement by the actuarial salary assumption rates in
existence during such period. Effective July 1, 1993, each member's current annual rate
shall be adjusted upon retirement by 5% for each year of disability after July 1, 1993, but
before July 1, 1998. Effective July 1, 1998, such member's current annual rate shall be
adjusted upon retirement by an amount equal to the lesser of: (1) The percentage increase
in the consumer price index for all urban consumers as published by the bureau of labor
statistics of the United States department of labor minus one percent; or (2) four percent
per annum, measured from the month the disability occurs to the month that is two months
prior to the month of retirement, for each year of disability after July 1, 1998.

(13) All payments due under this section to a minor shall be made to a legally appointed
conservator of such minor.

(14) The provisions of this section shall be effective on and after July 1, 1989 and shall
apply only to members who were appointed or employed prior to July 1, 1989, and who
made an election pursuant to K.S.A. 74-4955a and amendments thereto; and persons ap-
pointed or employed on or after July 1, 1989.

(15) Any retirant who has been receiving benefits under the provisions of this section
and who returns to employment with the same or different participating employer in the
system shall be deemed no longer retired.

Sec. 40. K.S.A. 1997 Supp. 74-4963, as amended by section 75 of 1998 Senate Bill No.
382, is hereby amended to read as follows: 74-4963. (1) Upon termination of employment
prior to the completion of 20 years of credited service, after 30 days after such termination
a member may withdraw such member's accumulated contributions or elect to leave such
accumulated contributions on deposit with the system. If the member elects to leave the
accumulated contributions on deposit with the system and if the member returns to em-
ployment with the same or another participating employer within five years, such member
shall receive credit for such member's service prior to such termination. If the member
does not elect to leave the accumulated contributions on deposit or if the member does not
return to covered employment within five years, such member shall no longer be a member
of the system and the sum of such member's accumulated contributions then on deposit
with this system shall be paid to such member after making application in a form prescribed
by the board and after the system has a reasonable time to process the application for
withdrawal. Upon proper notification by the system, member contributions not on deposit
with the system shall be paid to the member by the participating employer.

(2) If, after termination and withdrawal of accumulated contributions, a former member
returns to covered employment, except as otherwise provided in subsection (1), the former
member shall become a member of the system as provided in subsection (2) of K.S.A. 74-
4955 and amendments thereto. Any former member returning to covered employment may,
at the former member's option, pay to the system within 31 days of the former member's
return to covered employment, the total of the former member's withdrawn accumulated
contributions plus interest at a rate specified by the board, in which case the member shall
receive full credit for the member's service prior to the member's termination. Subject to
the provisions of section 83 and amendments thereto, members who do not elect to repay
within 31 days of return to covered employment may elect to purchase previously forfeited
service any time prior to retirement. Such purchase shall be made by a lump-sum payment
equal to 1.75% of the member's current annual salary for each quarter of previously forfeited
participating service which the member elects to repurchase. Upon receipt of such payment
by the system the member shall receive full credit for the number of previously forfeited
quarters of participating service which the member has elected to repurchase. Any member
who repurchases all of the member's previously forfeited participating service credit shall
also receive all of the member's previously forfeited prior service credit.

(3) Upon termination and withdrawal of accumulated contributions, any member whose
employment was, up to the member's employer's entry date, covered by a pension system
established under the provisions of K.S.A. 13-14a01 through 13-14a14, and amendments
thereto, or K.S.A. 14-10a01 through 14-10a15, and amendments thereto, shall be entitled
to receive from the member's employer the sum of the member's accumulated contributions
to the previous pension system.

(4) If a member has completed 20 years of credited service at date of termination, the
member shall be granted automatically a vested retirement benefit in the system, but any
time prior to the commencement of retirement benefit payments and before attaining age
55 the member may withdraw the member's accumulated contributions, whereupon the
member's membership in this system ceases and no other amounts shall be payable for the
member's prior and participating service credit. Eligibility of such member, who has not
withdrawn the member's accumulated contributions, for retirement benefits and procedures
for making application for retirement benefits shall be in accordance with K.S.A. 74-4957
and amendments thereto, except that in lieu of the three-month notice of intention to retire
being made to the employer, such member shall make application for retirement in a form
prescribed by the board and retirement benefits shall accrue from the first day of the month
following receipt of such application. The amount of the retirement benefit shall be deter-
mined as provided in K.S.A. 74-4958 and amendments thereto.

(5) If a member, who has a vested retirement benefit, again becomes an employee of
a participating employer, the amount of the member's vested retirement benefit shall remain
in effect, and any retirement benefit such member subsequently accrues shall be calculated
separately based on credited service after again becoming an employee and shall be added
to that which had been vested by virtue of previous service. Eligibility of such member for
retirement benefits and procedures for making application for retirement benefits shall be
in accordance with K.S.A. 74-4957 and amendments thereto.

(6) Any member of this system who was previously a member of the Kansas public
employees retirement system or the retirement system for judges and who forfeited service
credit under either of those systems by reason of termination of employment and withdrawal
of their contributions to that system, may elect, subject to the provisions of section 83 and
amendments thereto, to purchase service credit for the previously forfeited service credit
by means of a single lump-sum payment and such service shall be recredited to that system.
The amount of the lump-sum payment shall be determined by the actuary using the mem-
ber's then current annual rate of compensation and the actuarial assumptions and tables
then currently in use by that retirement system.

(7) The provisions of this section shall apply only to members who were appointed or
employed prior to July 1, 1989, and who did not make an election pursuant to K.S.A. 74-
4955a and amendments thereto.

Sec. 41. K.S.A. 1997 Supp. 74-4963a, as amended by section 76 of 1998 Senate Bill
No. 382, is hereby amended to read as follows: 74-4963a. (1) Upon termination of employ-
ment prior to the completion of 15 years of credited service, after 30 days after such ter-
mination a member may withdraw such member's accumulated contributions or elect to
leave such accumulated contributions on deposit with the system. If the member elects to
leave the accumulated contributions on deposit with the system and if the member returns
to employment with the same or another participating employer within five years, such
member shall receive credit for such member's service prior to such termination. If the
member does not elect to leave the accumulated contributions on deposit or if the member
does not return to covered employment within five years, such member shall no longer be
a member of the system and the sum of such member's accumulated contributions then on
deposit with this system shall be paid to such member after making application in a form
prescribed by the board and after the system has a reasonable time to process the application
for withdrawal. Upon proper notification by the system, member contributions not on de-
posit with the system shall be paid to the member by the participating employer.

(2) If, after termination and withdrawal of accumulated contributions, a former member
returns to covered employment, except as otherwise provided in subsection (1), the former
member shall become a member of the system as provided in subsection (2) of K.S.A. 74-
4955 and amendments thereto. Any former member returning to covered employment may,
at the former member's option, pay to the system within 31 days of the former member's
return to covered employment, the total of the former member's withdrawn accumulated
contributions plus interest at a rate specified by the board, in which case the member shall
receive full credit for the member's service prior to the member's termination. Subject to
the provisions of section 83 and amendments thereto, members who do not elect to repay
within 31 days of return to covered employment may elect to purchase previously forfeited
service any time prior to retirement. Such purchase shall be made by a lump-sum payment
equal to 1.75% of the member's current annual salary for each quarter of previously forfeited
participating service which the member elects to repurchase. Upon receipt of such payment
by the system the member shall receive full credit for the number of previously forfeited
quarters of participating service which the member has elected to repurchase. Any member
who repurchases all of the member's previously forfeited participating service credit shall
also receive all of the member's previously forfeited prior service credit.

(3) Upon termination and withdrawal of accumulated contributions, any member whose
employment was, up to the member's employer's entry date, covered by a pension system
established under the provisions of K.S.A. 13-14a01 through 13-14a14, and amendments
thereto, or K.S.A. 14-10a01 through 14-10a15, and amendments thereto, shall be entitled
to receive from the member's employer the sum of the member's accumulated contributions
to the previous pension system.

(4) If a member has completed 15 years of credited service at date of termination, the
member shall be granted automatically a vested retirement benefit in the system, but any
time prior to the commencement of retirement benefit payments and before attaining age
55 the member may withdraw the member's accumulated contributions, whereupon the
member's membership in this system ceases and no other amounts shall be payable for the
member's prior and participating service credit. Eligibility of such member, who has not
withdrawn the member's accumulated contributions, for retirement benefits and procedures
for making application for retirement benefits shall be in accordance with K.S.A. 74-4957
and amendments thereto, except that in lieu of the three-month notice of intention to retire
being made to the employer, such member shall make application for retirement in a form
prescribed by the board and retirement benefits shall accrue from the first day of the month
following receipt of such application. The amount of the retirement benefit shall be deter-
mined as provided in K.S.A. 74-4958 and amendments thereto.

(5) If a member, who has a vested retirement benefit, again becomes an employee of
a participating employer, the amount of the member's vested retirement benefit shall remain
in effect, and any retirement benefit such member subsequently accrues shall be calculated
separately based on credited service after again becoming an employee and shall be added
to that which had been vested by virtue of previous service. Eligibility of such member for
retirement benefits and procedures for making application for retirement benefits shall be
in accordance with K.S.A. 74-4957 and amendments thereto.

(6) Any member of this system who was previously a member of the Kansas public
employees retirement system or the retirement system for judges and who forfeited service
credit under either of those systems by reason of termination of employment and withdrawal
of their contributions to that system, may elect, subject to the provisions of section 83 and
amendments thereto, to purchase service credit for the previously forfeited service credit
by means of a single lump-sum payment and such service shall be recredited to that system.
The amount of the lump-sum payment shall be determined by the actuary using the mem-
ber's then current annual rate of compensation and the actuarial assumptions and tables
then currently in use by that retirement system.

(7) The provisions of this section shall be effective on and after July 1, 1989 and shall
apply only to members who were appointed or employed prior to July 1, 1989, and who
made an election pursuant to K.S.A. 74-4955a and amendments thereto; and persons ap-
pointed or employed on or after July 1, 1989.

Sec. 42. K.S.A. 1997 Supp. 74-4966 is hereby amended to read as follows: 74-4966. (a)
In the case of any member whose employment shall be covered by social security and who
is a member of the class certified in the case of Brazelton v. Kansas public employees
retirement system, 227 K. 443, 607 P.2d 510 (1980), any benefits payable under the pro-
visions of K.S.A. 74-4958, 74-4959 and 74-4960 shall be reduced by an amount equal to 1/2
of the original social security benefits accruing from employment with the participating
employer at the time the member retired. For any member already retired on the effective
date of this act, no reduction of the original social security benefits shall be applicable to
benefits paid prior to the effective date of this act. The member must make an initial ap-
plication for social security benefits from employment with the participating employer and,
if denied such benefits, the member must pursue and exhaust all administrative remedies of
the social security administration which include, but are not limited to, reconsideration and
hearings. Until such initial application for benefits has been approved by the social security
administration, social security benefits may be estimated and may be deducted from the
amount of any benefits payable as provided in this subsection.

(b) For any member other than a member who is a member of the class certified in the
case of Brazelton v. Kansas public employees retirement system, 227 K. 443, 607 P.2d 510
(1980), no benefits shall be reduced because of social security benefits. Any benefits which
first become payable on or after January 1, 1976, by reason of employment with a partici-
pating employer participating in the Kansas police and firemen's retirement system, which
employment was also covered by social security, shall be reduced by an amount equal to
the value of the difference between contributions actually made by the member and con-
tributions which would have been made had there been no reduction for contributions to
social security. The amount of reduction shall be made by the board upon the advice of the
actuary at the time benefits become payable and shall continue until benefits are no longer
payable. Should a member, whose employment prior to January 1, 1976, with a participating
employer participating in the Kansas police and firemen's retirement system, such employ-
ment also being covered by social security, repay in a lump-sum prior to January 1, 1977,
or on date of retirement, whichever is earlier, an amount equal to the difference between
contributions actually made by the member and contributions which would have been made
had there been no reduction for contributions to social security, there shall be no reduction
as heretofore provided. If the payment is made after January 1, 1977, but prior to retirement,
the member will pay the actual amount plus interest which shall accrue from January 1,
1976, at a rate specified by the board of trustees.

Sec. 43. K.S.A. 1997 Supp. 74-4988 is hereby amended to read as follows: 74-4988. (1)
(a) Each person who is a member of a retirement system and who becomes a member of
another retirement system shall receive credit under each such retirement system for cred-
ited service under the other retirement system for the purpose of satisfying any requirement
for such person to complete certain periods of service to become eligible to receive a re-
tirement benefit or disability benefit or for such person's beneficiaries to receive a death
benefit. The retirement benefit which a person becomes eligible to receive under a retire-
ment system shall be based only on credited service under such retirement system, except
that the determination of final average salary under such retirement system shall include
the compensation received as a member of each other retirement system if such compen-
sation is higher. Except as provided in subsection (1)(b), such retirement benefit shall be-
come payable upon the member submitting an application to retire under each system,
except that a member who is not eligible to retire under the retirement system to which
such member is not currently making contributions because such member does not meet
the age requirements of the earliest retirement date of such system may retire, upon meeting
the requirements for retirement, under the provisions of the retirement system which the
member had been most recently making contributions. No further rights and benefits will
accrue under the retirement system to which the member is not currently making contri-
butions after the date the member retires from the system from which the member had
been most recently making contributions and the member will be retired and benefits shall
commence on the date that the member would first have attained retirement age from the
system to which the member is not currently making contributions.

(b) The requirement that a member shall submit an application to retire under each
system before becoming eligible to receive any retirement system benefits shall not apply to
any member who was active and contributing to one retirement system and who was inactive
in another retirement system on July 1, 1995.

(2) Any member who is not otherwise eligible for service credit as provided for in
subsection (1)(a) of K.S.A. 74-4913 or subsection (1)(a) of K.S.A. 74-4936 and amendments
thereto, may be granted credit for the service upon the attainment of 38 quarters of partic-
ipating service in any retirement system as defined in subsection (3)(b) or upon retirement.

(3) As used in this section:

(a) ``Member'' means a person who has attained membership in a retirement system,
who has not retired under such retirement system and who has not withdrawn such person's
accumulated contributions for such retirement system; and

(b) ``retirement system'' means the Kansas public employees retirement system, the
Kansas police and firemen's retirement system and the retirement system for judges.

Sec. 44. K.S.A. 1997 Supp. 74-4990 is hereby amended to read as follows: 74-4990. (1)
An arrearage obligation shall arise when it is ascertained that required contributions have
not been made to the Kansas public employees retirement system at the required time.
Such arrearage obligation shall be met by the employer by preparing a report on the ap-
propriate form to correct all previous ~~quarterly~~ reports affected by the arrearage obligation.
Such report shall be submitted by the employer with the first ~~quarterly~~ report after such an
arrearage obligation is discovered or as the board of trustees of the system may otherwise
prescribe. The proper remittance to cover employer and employee contributions in arrearage
shall accompany such report or as the board of trustees of the system may otherwise pre-
scribe for all arrearages other than for the year of service as provided in K.S.A. 74-4911
and amendments thereto. In addition, the employer will pay to the system, interest at the
current actuarial interest rate assumption adopted by the board. If the employee retires
within 24 months of the employer first reporting this arrearage, the employer will pay to
the system a lump-sum amount equal to the difference of the actuarial present value of the
retirement benefit and the accumulated value of any contributions represented by the ar-
rearage. No employee shall pay all or any part of the arrearage. The amounts due for an
arrearage obligation shall be based upon the compensation paid to the member and at the
rates in effect at the time the contributions were originally due to be paid to the system.
The employer shall not be required to pay the employee contributions or interest on arrear-
ages of six month or less.

(2) An arrearage obligation shall arise when it is ascertained that the employee and
employer should have made contributions to the Kansas public employees retirement system
for all or part of the year of service as provided in K.S.A. 74-4911 and amendments thereto.
Such arrearage obligation shall be met by the employer by preparing a report on the ap-
propriate form to correct all previous reports affected by the arrearage obligation. Such
report shall be submitted by the employer with the first report after such an arrearage
obligation is discovered or as the board of trustees of the system may otherwise prescribe.
The proper remittance to cover employer contributions in arrearage shall accompany such
report or as the board of trustees of the system may otherwise prescribe. The amounts due
for an arrearage obligation shall be based upon compensation paid to the member and at
the rates in effect at the time contributions were originally due to be paid to the system.

~~(2)~~(3) In the event the proper remittance to cover employee contributions in arrearage
does not accompany such report, service credits for that period of employment involving
the arrearage obligation may be purchased by the member as participating service at any
time prior to retirement by making application therefor and paying to the system a single
lump-sum amount determined by the system's actuary using (a) the member's then current
annual rate of compensation, or if not actively employed, the member's annual rate of
compensation when last participating and (b) the actuarial assumptions and tables currently
in use by the system.

~~(3)~~(4) Except as otherwise provided in this section, any member may purchase partic-
ipating service credits for that period of employment involving the arrearage obligation as
described in this section, if first commenced prior to January 1, 1996, by electing to effect
such purchase by means of having employee contributions as provided in K.S.A. 74-4919
and amendments thereto deducted from such member's compensation at a percentage rate
equal to two times or three times the employee's rate of contribution as provided in K.S.A.
74-4919 and amendments thereto for such periods of service, in lieu of a lump-sum amount
as provided in this section. Such deductions shall commence at the beginning of the quarter
following such election and shall remain in effect until all quarters of such service have been
purchased. Any person may make any such purchase as described in this section, if first
commenced in calendar year 1996 or thereafter, at an additional rate of contribution, in
addition to the employee's rate of contribution as provided in K.S.A. 74-4919 and amend-
ments thereto, based upon the member's attained age at the time of purchase and using
actuarial assumptions and tables in use by the retirement system at such time of purchase,
for such periods of service, in lieu of a lump-sum amount as provided in this section. Such
additional rate of contribution shall commence at the beginning of the quarter following
such election and shall remain in effect until all quarters of such service have been pur-
chased.

~~(4)~~(5) Notwithstanding the provisions of this section, no employee contributions shall
be due and owing for stipulated compensation amounts paid to any employee or former
employee of a city of the first class whose dispute with such city was settled by stipulation
of settlement either in Case No. 90-2328-0 in the United States District Court for the
District of Kansas or in Case No. 91-1182 in the Supreme Court of the United States. Any
such employee or former employee may elect to remit such employee contributions to the
system. No employee or former employee whose contributions are deemed not to be due
or owing or who did not elect to remit such employee contributions to the system as provided
in this section according to this provision shall have any claim against the Kansas public
employees retirement system for any retirement, disability, death or survivors benefit or any
return of accumulated contributions based on such contributions or on the compensation
amounts that would have been reflected by such contributions.

Sec. 45. K.S.A. 1997 Supp. 74-4992, as amended by section 87 of 1998 Senate Bill No.
382, is hereby amended to read as follows: 74-4992. (a) Any such member of the legislature
or former member of the legislature as described in K.S.A. 74-4991 and amendments thereto
shall become a member on entry date or upon filing with the board an irrevocable election
to become or not to become a member of the system. In the event that any such member
of the legislature or former member of the legislature fails to file the election to become a
member of the retirement system, it shall be presumed that such member of the legislature
or former member of the legislature has elected not to become a member. The election to
participate shall become effective immediately upon making such election, if such election
is made within 14 days of taking the oath of office or, otherwise, on the first day of the first
payroll period of the first quarter following receipt of the election in the office of the
retirement system.

(b) Any member of the legislature who had attained membership in the Kansas public
employees retirement system prior to taking the oath of office as a member of the legislature
may elect not to participate in the Kansas public employees retirement system for the
purpose of service as a member of the legislature. This election, which is irrevocable, must
be filed within the offices of the system. Any member of the legislature who is a member
of the retirement system on the effective date of this act and was a member of the retirement
system at the time of taking the oath of office may elect not to participate in the retirement
system for service as a member of the legislature if such irrevocable election is filed within
the offices of the system.

(c) Subject to the provisions of section 83, and amendments thereto, any member of
the legislature who elected not to participate in the retirement system, and who is not a
contributing member with any other participating employer, may purchase such participat-
ing service by making a single lump-sum payment in an amount determined by the actuary
using the then current rate of compensation and the actuarial assumptions and tables cur-
rently in use by the system.

(d) Subject to the provisions of section 83, and amendments thereto, except as otherwise
provided in this section, any member of the retirement system may purchase participating
service credit for employment service as described in this section, if first commenced prior
to January 1, 1996, by electing to effect such purchase by means of having employee con-
tributions as provided in K.S.A. 74-4919 and amendments thereto deducted from such
member's compensation at a percentage rate equal to two times or three times the em-
ployee's rate of contribution as provided in K.S.A. 74-4919 and amendments thereto for
such periods of service in lieu of a lump-sum amount as provided in this section. Such
deductions shall commence at the beginning of the quarter following such election and shall
remain in effect until all quarters of such service have been purchased. Any person may
make any such purchase as described in this section, if first commenced in calendar year
1996 or thereafter, at an additional rate of contribution, in addition to the employee's rate
of contribution as provided in K.S.A. 74-4919 and amendments thereto, based upon the
member's attained age at the time of purchase and using actuarial assumptions and tables
in use by the retirement system at such time of purchase, for such periods of service, in
lieu of a lump-sum amount as provided in this section. Such additional rate of contribution
shall commence at the beginning of the quarter following such election and shall remain in
effect until all quarters of such service have been purchased.

New Sec. 46. The retirement system for judges is a division of the Kansas public em-
ployees retirement system created by K.S.A. 74-4903 and amendments thereto and is subject
to the provisions of K.S.A. 74-4901 et seq. and amendments thereto.

New Sec. 47. (1) Any member of the retirement system for judges may purchase par-
ticipating credit for periods of active service in the armed forces of the United States or in
the commissioned corps of the United States public health service and for periods of service
required to fulfill the requirements of section 651 of title 10, United States code, which
does not exceed six years. Such judge shall be entitled to purchase one quarter of partici-
pating service credit for each year of service required to fulfill the requirements of section
651 of title 10, United States code. Such purchase shall be effected by the judge submitting
proof of such service acceptable to the board and electing in writing to have employee
contributions as provided in K.S.A. 20-2603 and amendments thereto deducted from such
judge's compensation at an additional rate of contribution, in addition to the employee's
rate of contribution as provided in K.S.A. 20-2603 and amendments thereto, based upon
the judge's attained age at the time of purchase and using actuarial assumptions and tables
in use by the retirement system at such time of purchase for such periods of service. Such
additional rate of contribution shall commence at the beginning of the quarter following
such election and shall remain in effect until all of the full quarters of such service have
been purchased.

(2) Any member of the retirement system who has not retired may purchase partici-
pating service credit for military service as described in this section by electing to effect
such purchase by means of a single lump-sum payment in lieu of employee contributions
as provided in this section. The lump-sum payment shall be an amount determined by the
actuary using the judge's then current annual rate of compensation, the actuarial assump-
tions and tables currently in use by the retirement system and the judge's attained age. No
participating employer shall pay all or any part of the cost of any additional participating
service credit to be purchased by means of a lump-sum payment by a judge under this
section.

New Sec. 48. The retirement benefit, pension or annuity payments accruing after June
30, 1998, to each retirant of the state school retirement system who retired prior to January
1, 1971, and who had at least 25 years or more of service credit, shall be increased by an
amount equal to $100.

New Sec. 49. The provisions of K.S.A. 74-4999 et seq. and amendments thereto shall
apply to any member of the Kansas public employees retirement system who was a court
reporter for a magistrate court prior to July 1, 1975, and who is a full-time court reporter
on the effective date of this act.

New Sec. 50. (a) The retirement benefit, pension or annuity payments accruing after
June 30, 1998, to each retirant and each local school annuitant shall be increased by an
amount equal to 3.0% of the retirement benefit, pension or annuity payment in effect on
July 1, 1998, from the retirant's retirement system and shall be paid by such retirement
system to the retirant and the local school annuitant during such period.

(b) As used in this section:

(1) ``Retirant'' means (A) any person who is a member of a retirement system and who
retired prior to July 1, 1997, (B) any person who is a special member of a retirement system
and who retired prior to July 1, 1997, (C) any person who is a joint annuitant or beneficiary
of any member described in clause (A) or any special member described in clause (B) and
(D) any long-term disability benefit recipient.

(2) ``Retirement system'' means the Kansas public employees retirement system, the
Kansas police and firemen's retirement system, the state school retirement system and the
retirement system for judges.

(3) ``Local school annuitant'' means (A) any person who is an annuitant with 10 or more
years of service, who is receiving an annuity, whose annuity is not included, in whole or in
part, in payments made to such school district under K.S.A. 72-5512b and amendments
thereto, and who is not a member of a group I or of group II as defined in K.S.A. 72-5518
and amendments thereto, and (B) any person who is receiving an annuity and who retired
prior to September 1, 1981.

(4) ``Long-term disability recipient'' means any person receiving a long-term disability
benefit under K.S.A. 74-4927 and amendments thereto prior to July 1, 1997.

New Sec. 51.

KANSAS PUBLIC EMPLOYEES RETIREMENT SYSTEM
(a) There is appropriated for the above agency from the state general fund for the fiscal year ending June 30, 1999, the following:

Actuarial funding -- 3% postretirement benefit increase

$20,000,000

Provided, That all expenditures from the actuarial funding -- 3% postretirement benefit
increase account shall be to finance the amount required to fund the actuarial liability of
the state obligation for the one-time postretirement benefit increase for persons who retired
prior to July 1, 1997, and for whom the state paid employer contributions (1) under the
Kansas public employees retirement system for those persons who were eligible for assis-
tance from the state board of regents in the purchase of annuities as provided in K.S.A. 74-
4925, and amendments thereto, (2) under the Kansas public employees retirement system
for those persons who were employed by eligible employers described by K.S.A. 74-4931,
and amendments thereto, and for whom employer contributions were paid as provided by
K.S.A. 74-4939, and amendments thereto, (3) under the Kansas police and firemen's re-
tirement system as provided by K.S.A. 74-4951 et seq., and amendments thereto, or (4)
under the retirement system for judges as provided by K.S.A. 20-2601 et seq., and amend-
ments thereto.

New Sec. 52. (1) Notwithstanding the provisions of subsection (9) of K.S.A. 74-4902
and amendments thereto, any payment for accumulated sick leave, vacation or annual leave,
severance pay or any other payments to the member which, when upon retirement, increases
the member's final average salary by more than 15%, shall require the participating employer
to pay the system a lump-sum amount equal to the system's actuarial liability for benefits
attributable to and payable on account of such excess over the 15%.

(2) As used in this section, ``system'' means the Kansas public employees retirement
system, the Kansas police and firemen's retirement system and the retirement system for
judges.

New Sec. 53. (1) Any payment made to a named beneficiary as provided in this section,
shall be a full discharge and release to the system from any further claims. Any payment
made to a beneficiary as provided in clauses (A), (B), (C), (D), (E) or (F) of subsection (7)
of K.S.A. 74-4902 or in clauses (1), (2), (3), (4), (5) or (6) of subsection (k) of K.S.A. 20-
2601, and amendments thereto, as determined by the board, shall be a full discharge and
release to the system from any further claims. Whenever any payment is payable to more
than one beneficiary such payment shall be made to such beneficiaries jointly.

(2) Any benefits payable to a beneficiary or beneficiaries who are incompetent shall be
made in the name of the beneficiary or beneficiaries and delivered to the lawfully appointed
conservator of such beneficiaries who was nominated by will or as otherwise provided by
law, except that in those cases where the benefit involves an amount not to exceed $500,
the board is hereby authorized in its discretion without the appointment of a conservator
or in the giving of a bond to pay such amount as is due to the incompetent person or persons
themselves.

(3) Any lump-sum benefits payable to a beneficiary or beneficiaries who are minor
children and which amount totals $10,000 or more shall be made in the name of the ben-
eficiary or beneficiaries and delivered to the lawfully appointed conservator of such bene-
ficiaries who was nominated by will or as otherwise provided by law except that in those
cases where the benefit involves an amount not to exceed $500, the board is hereby au-
thorized in its discretion without the appointment of a conservator or the giving of a bond
to pay such amount as is due to the minor or minors themselves. If no conservator is lawfully
appointed, the system will credit interest at 4% on all benefits due and payable and shall
pay all benefits plus interest to the beneficiary or beneficiaries who are minor children when
they attain age 18 years. Any benefits payable to a beneficiary or beneficiaries who are minor
children and which amount which totals more than $500 but less than $10,000, may be
made in the name of the beneficiary or beneficiaries and paid under the uniform transfers
to minors act as provided in K.S.A. 38-1701 et seq. and amendments thereto.

(4) Any monthly benefits payable to a beneficiary or beneficiaries who are minor chil-
dren shall be made in the name of the beneficiary or beneficiaries and delivered to the
lawfully appointed conservator of such beneficiaries who was nominated by will or as oth-
erwise provided by law. If no conservator is lawfully appointed, the system will credit interest
at 4% on all benefits due and payable and shall pay all benefits plus interest to the beneficiary
or beneficiaries who are minor children when they attain age 18 years.

(5) As used in this section, ``system'' means the Kansas public employees retirement
system, the Kansas police and firemen's retirement system and the retirement system for
judges.

New Sec. 54. Any employee of a participating employer who is a member of the Kansas
public employees retirement system, who was previously employed in Kansas in nonfederal
governmental employment with an employer who has not affiliated with the system under
K.S.A. 74-4910 and amendments thereto, and which service otherwise meets the require-
ments of an employee as prescribed in subsection (14) of K.S.A. 74-4902 or subsection (4)
of K.S.A. 74-4932 and amendments thereto, may elect to purchase service credit for such
in-state nonfederal governmental employment. At the election of the member, the benefit
for each such year of employment shall be either 1% or 1.75% of the final average salary
of any such member. For any member who elects to purchase service credit as provided in
this section at the 1% rate, such member may elect to purchase such service credit at an
additional amount of .75% of final average salary of such member in a lump-sum amount
as otherwise provided in this subsection. Such member may purchase such service credit
by making application therefor prior to the date of retirement at an additional rate of con-
tribution in addition to the employee's rate of contribution as provided in K.S.A. 74-4919
and amendments thereto, based upon the member's attained age at the time of purchase
and using actuarial assumptions and tables in use by the retirement system at the time of
such purchase. Such additional rate of contribution shall commence at the beginning of the
quarter following such election and shall remain in effect until all quarters of such service
have been purchased. Any such member may purchase such service credit as described in
this section by electing to effect such purchase by means of a single lump-sum payment in
lieu of employee contributions as provided in this section in an amount equal to the then
present value of the benefits being purchased as determined by the actuary using the mem-
ber's attained age, annual compensation at the time of purchase and the actuarial assump-
tions and tables then in use by this system. The lump-sum payment shall be made imme-
diately upon being notified of the amount due. No purchase of service or any part thereof
will be nullified by the subsequent affiliation of an employer with the system.

Sec. 55. K.S.A. 20-2601a, 20-2606, as amended by section 17 of 1998 Senate Bill No.
382, 20-2609, 20-2610, 20-2620, as amended by section 20 of 1998 Senate Bill No. 382, 72-
5501, as amended by section 22 of 1998 Senate Bill No. 382, 74-4919i, as amended by
section 45 of 1998 Senate Bill No. 382, 74-4924 and 74-4955a and K.S.A. 1998 Supp. 20-
2601, as amended by section 15 of 1998 Senate Bill No. 382, 46-2201, 74-4902, as amended
by section 26 of 1998 Senate Bill No. 382, 74-4904, 74-4905, 74-4907, 74-4908, 74-4910,
74-4911, as amended by section 28 of 1998 Senate Bill No. 382, 74-4913, as amended by
section 33 of 1998 Senate Bill No. 382, 74-4914, 74-4914e, 74-4917, 74-4919a, as amended
by section 38 of 1998 Senate Bill No. 382, 74-4919h, as amended by section 44 of 1998
Senate Bill No. 382, 74-4919n, as amended by section 49 of 1998 Senate Bill No. 382, 74-
4919p, 74-4919q, 74-4920, 74-4921, 74-4927, as amended by section 53 of 1998 Senate Bill
No. 382, 74-4936a, as amended by section 63 of 1998 Senate Bill No. 382, 74-4937, 74-
4939, 74-4952, as amended by section 65 of 1998 Senate Bill No. 382, 74-4956, as amended
by section 68 of 1998 Senate Bill No. 382, 74-4957, 74-4957a, 74-4960, as amended by
section 72 of 1998 Senate Bill No. 382, 74-4960a, as amended by section 73 of 1998 Senate
Bill No. 382, 74-4963, as amended by section 75 of 1998 Senate Bill No. 382, 74-4963a, as
amended by section 76 of 1998 Senate Bill No. 382, 74-4966, 74-4988, 74-4990 and 74-
4992, as amended by section 87 of 1998 Senate Bill No. 382, are hereby repealed.'';

And by renumbering sections accordingly;

On page 1, in the title, in line 15, by striking all after the first semicolon; by striking all
in lines 16 through 29 and inserting `` making appropriations for the fiscal year ending June
30, 1999, for the Kansas public employees retirement system; amending K.S.A. 20-2601a,
20-2606, as amended by section 17 of 1998 Senate Bill No. 382, 20-2609, 20-2610, 20-2620,
as amended by section 20 of 1998 Senate Bill No. 382, 72-5501, as amended by section 22
of 1998 Senate Bill No. 382, 74-4919i, as amended by section 45 of 1998 Senate Bill No.
382, 74-4924 and 74-4955a and K.S.A. 1998 Supp. 20-2601, as amended by section 15 of
1998 Senate Bill No. 382, 46-2201, 74-4902, as amended by section 26 of 1998 Senate Bill
No. 382, 74-4904, 74-4905, 74-4907, 74-4908, 74-4910, 74-4911, as amended by section 28
of 1998 Senate Bill No. 382, 74-4913, as amended by section 33 of 1998 Senate Bill No.
382, 74-4914, 74-4914e, 74-4917, 74-4919a, as amended by section 38 of 1998 Senate Bill
No. 382, 74-4919h, as amended by section 44 of 1998 Senate Bill No. 382, 74-4919n, as
amended by section 49 of 1998 Senate Bill No. 382, 74-4919p, 74-4919q, 74-4920, 74-4921,
74-4927, as amended by section 53 of 1998 Senate Bill No. 382, 74-4936a, as amended by
section 63 of 1998 Senate Bill No. 382, 74-4937, 74-4939, 74-4952, as amended by section
65 of 1998 Senate Bill No. 382, 74-4956, as amended by section 68 of 1998 Senate Bill No.
382, 74-4957, 74-4957a, 74-4960, as amended by section 72 of 1998 Senate Bill No. 382,
74-4960a, as amended by section 73 of 1998 Senate Bill No. 382, 74-4963, as amended by
section 75 of 1998 Senate Bill No. 382, 74-4963a, as amended by section 76 of 1998 Senate
Bill No. 382, 74-4966, 74-4988, 74-4990 and 74-4992 as amended by section 87 of 1998
Senate Bill No. 382, and repealing the existing sections.'';

And your committee on conference recommends the adoption of this report.

Mike Farmer

John T. Edmonds

Henry M. Helgerson, Jr.

Conferees on part of House

Dave Kerr

Stephen R. Morris

Marge Petty

Conferees on part of Senate

May 3, 1998

Senator Kerr moved the Senate adopt the Conference Committee report on SB 11.

On roll call, the vote was: Yeas 34, nays 6, present and passing 0; absent or not voting 0.

Yeas: Barone, Becker, Biggs, Bleeker, Bond, Corbin, Donovan, Downey, Emert, Fele-
ciano, Gilstrap, Gooch, Goodwin, Hardenburger, Hensley, Jones, Jordan, Karr, Kerr, Lang-
worthy, Lawrence, Lee, Morris, Oleen, Petty, Praeger, Pugh, Salisbury, Salmans, Schraad,
Steffes, Steineger, Umbarger, Vidricksen.

Nays: Brownlee, Clark, Harrington, Huelskamp, Ranson, Tyson.

The Conference Committee report was adopted.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 234, 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 1, by striking all in lines 19 through 43;

On page 2, by striking all in lines 1 through 22 and inserting the following:

``Section 1. K.S.A. 75-7b01 is hereby amended to read as follows: 75-7b01. As used in
this act:

(a) ``Detective business'' means the furnishing of, making of or agreeing to make any
investigation for the purpose of obtaining information with reference to:

(1) Crime or wrongs done or threatened against the United States or any state or ter-
ritory of the United States, or any political subdivision thereof when furnished or made by
persons other than law enforcement officers;

(2) the identity, habits, conduct, business, occupation, honesty, integrity, credibility,
knowledge, trustworthiness, efficiency, loyalty, activity, movement, whereabouts, affiliations,
associations, transactions, acts, reputation or character of any person;

(3) the location, disposition or recovery of lost or stolen property;

(4) the cause or responsibility for fires, libels, losses, frauds, accidents or damage or
injury to persons or to property; or

(5) securing evidence to be used before any court, board, officer or investigating com-
mittee.

(b) ``Private detective'' means any person who, for any consideration whatsoever, en-
gages in detective business.

(c) ``Private detective agency'' means a person who regularly employs any other person,
other than an organization, to engage in detective business.

(d) ``Private patrol operator'' means a person who, for any consideration whatsoever,
agrees to furnish or furnishes a watchman, guard, patrolman or other person to protect
persons or property or to prevent the theft, unlawful taking, loss, embezzlement, misappro-
priation or concealment of any goods, wares, merchandise, money, bonds, stocks, notes,
documents, papers or property of any kind, or performs the service of such watchman,
guard, patrolman or other person for any such purposes.

(e) ``Law enforcement officer'' means a law enforcement officer as defined by K.S.A.
21-3110, and amendments thereto.

(f) ``Organization'' means a corporation, trust, estate, partnership, cooperative or asso-
ciation.

(g) ``Person'' means an individual or organization.

(h) ``Firearm permit'' means a permit for the limited authority to carry a firearm con-
cealed on or about the person by one licensed as a private detective.

(i) ``Firearm'' means:

(1) A pistol or revolver which is designed to be fired by the use of a single hand and
which is designed to fire or capable of firing fixed cartridge ammunition; or

(2) any other weapon which will or is designed to expel a projectile by the action of an
explosive and which is designed to be fired by the use of a single hand.

(j) ``Client'' means any person who engages the services of a private detective.

(k) ``Dishonesty or fraud'' means, in addition to other acts not specifically enumerated
herein:

(1) Knowingly making a false statement relating to evidence or information obtained in
the course of employment, or knowingly publishing a slander or a libel in the course of
business;

(2) using illegal means in the collection or attempted collection of a debt or obligation;

(3) manufacturing or producing any false evidence; and

(4) acceptance of employment adverse to a client or former client relating to a matter
with respect to which the licensee has obtained confidential information by reason of or in
the course of the licensee's employment by such client or former client.

Sec. 2. K.S.A. 75-7b03 is hereby amended to read as follows: 75-7b03. The following
persons shall not be deemed to be engaging in detective business:

(a) A person employed exclusively and regularly by one employer in connection only
with the internal affairs or investigations of such employer and where there exists an em-
ployer-employee relationship;

(b) any officer or employee of the United States, or of this state or a political subdivision
thereof while engaged in the performance of the officer's or employee's official duties;

(c) a person engaged exclusively in the business of obtaining and furnishing information
as to the financial rating of persons except that this exemption does not include a person
preparing an investigative consumer report as defined by K.S.A. 50-702, and amendments
thereto;

(d) a charitable philanthropic society or association duly incorporated under the laws of
this state which is organized and maintained for the public good and not for private profit;

(e) an attorney performing duties as an attorney or a person employed exclusively and
regularly by an attorney or law firm performing duties exclusively on behalf of the attorney
or law firm;

(f) a licensed collection agency or an employee thereof while acting within the scope of
employment, while making an investigation incidental to the business of the agency, includ-
ing an investigation of the location of a debtor or a debtor's property where the contract
with an assignor creditor is for the collection of claims owed or due or asserted to be owed
or due or the equivalent thereof;

(g) admitted insurers, agents and insurance brokers licensed by the state, performing
duties in connection with insurance transacted by them;

(h) the legal owner of personal property which has been sold under a conditional sales
agreement or a mortgagee under the terms of a chattel mortgage in connection with the
recovery of such personal property;

(i) any bank subject to the jurisdiction of the state bank commissioner of the state of
Kansas or the comptroller of currency of the United States;

(j) a person engaged solely in the business of securing information about persons or
property from public records;

(k) an insurance adjuster which, for the purpose of this act, means any person who, for
any consideration whatsoever, adjusts or otherwise participates in the disposal of any claim
under or in connection with a policy of insurance or engages in soliciting insurance adjust-
ment business; or

(l) a private patrol operator while actually engaged in providing private patrol services
on the property to which private patrol services are being provided; or

(m) a person engaged in market research.

Sec. 3. K.S.A. 75-7b04 is hereby amended to read as follows: 75-7b04. (a) Every person
desiring to be licensed in Kansas as a private detective or private detective agency shall
make application therefor to the attorney general. An application for a license under this
act shall be on a form prescribed by the attorney general and accompanied by the required
application fee. An application shall be verified and shall include:

(1) The full name and business address of the applicant;

(2) the name under which the applicant intends to do business;

(3) a statement as to the general nature of the business in which the applicant intends
to engage;

(4) a statement as to the classification or classifications under which the applicant desires
to be qualified;

(5) if the applicant is an organization, the full name and residence address of each of
its partners, officers, directors or associates;

(6) two ~~recent~~ photographs of the applicant taken within 30 days before the date of
application, of a type prescribed by the attorney general, and two classifiable sets of the
applicant's fingerprints one of which shall be submitted to the federal bureau of investigation
for a fingerprint check for any criminal history of the applicant;

(7) a ~~verified~~ statement of the applicant's ~~experience qualifications~~ employment history;
and

(8) such other information, evidence, statements or documents as may be required by
the attorney general.

~~(b) If an applicant is a resident of this state, the application shall be approved, as to~~
~~each resident person signing the application, by five or more reputable citizens of the com-~~
~~munity in which the applicant resides or transacts business, or in which the applicant pro-~~
~~poses to own, conduct, manage or maintain the bureau, agency, subagency, office or branch~~
~~office for which the license is desired. If an applicant is not a resident of this state, the~~
~~application shall be approved, as to each nonresident person signing the application, by five~~
~~or more reputable citizens of the community in which the applicant resides and the certif-~~
~~icate of approval shall be verified and acknowledged by such nonresident citizens before an~~
~~officer authorized to take oaths and acknowledgment of deeds.~~

~~Each citizen approving an application shall subscribe and affirm as true, under the pen-~~
~~alties of perjury, that:~~

~~(1) The citizen has personally known the persons signing the application for a period of~~
~~at least five years prior to the filing of the application, except that the attorney general may~~
~~lessen such period if the person signing the application has been honorably discharged from~~
~~the military service of the United States within the six-year period immediately preceding~~
~~the date application is submitted;~~

~~(2) the citizen has read such application and believes each of the statements made~~
~~therein to be true;~~

~~(3) the persons signing the application are honest, of good character and competent and~~
~~not related or connected by blood or marriage to the citizen.~~

(b) The application shall be accompanied by a certificate of reference signed by five or
more reputable persons who have known the applicant for a period of at least 5 years. The
certificate of reference shall be verified and acknowledged by such persons before an officer
authorized to take oaths and acknowledgment of deeds.

Each person signing the certificate of reference shall subscribe and affirm as true, under
the penalties of perjury, that:

(1) The person has known the applicant personally for a period of at least five years
prior to the filing of the application. The attorney general may lessen such period if the
applicant has been discharged honorably from the military service of the United States within
the six-year period immediately preceding the date the application is submitted;

(2) the person has read such application and believes each of the statements made therein
to be true;

(3) the applicant is honest, of good character and competent and not related or connected
by blood or marriage to such person.

(c) Before an application for a license may be granted, the applicant or, if the applicant
is an organization, all of the officers, directors, partners or associates shall:

(1) Be at least 21 years of age;

(2) be a citizen of the United States;

(3) be of good moral character; and

(4) comply with such other qualifications as the attorney general adopts by rules and
regulations.

(d) ~~After a hearing conducted~~ In accordance with the summary proceedings provisions
of the Kansas administrative procedure act, the attorney general may deny a license ~~unless~~
~~the applicant makes a showing satisfactory to the attorney general that the applicant or, if~~
~~the applicant is an organization, that each of its officers, directors, partners or associates has~~
~~not~~ if the applicant has:

(1) Committed any act which, if committed by a licensee, would be grounds for the
suspension or revocation of a license under this act;

(2) committed any act constituting dishonesty or fraud;

(3) a bad moral character or a bad reputation for truth, honesty, and integrity;

(4) been convicted of a felony or, within 10 years immediately prior to the date of
application, been convicted of any crime involving moral turpitude, dishonesty, vehicular
homicide, assault, battery, assault of a law enforcement officer, misdemeanor battery against
a law enforcement officer, criminal restraint, sexual battery, endangering a child, intimi-
dation of a witness or victim or illegally using, carrying, or possessing a dangerous weapon
~~within 10 years immediately prior to the date of application~~;

(5) been refused a license under this act or had a license suspended or revoked in this
state or in any other jurisdiction or had a license censured, limited or conditioned two or
more times in this state or in any other jurisdiction;

(6) been an officer, director, partner, or associate ~~or manager~~ of any person who has
been refused a license under this act or whose license has been suspended or revoked in
this state or in any other jurisdiction or had a license censured, limited or conditioned two
or more times in this state or in any other jurisdiction;

(7) while unlicensed, committed or aided and abetted the commission of any act for
which a license is required by this act; or

(8) knowingly made any false statement in the application.

(e) The attorney general may charge a fee for initial application forms and materials in
an amount fixed by the attorney general pursuant to section 14, and amendments thereto.
Such fee shall be credited against the application fee of any person who subsequently submits
an application.

Sec. 4. K.S.A. 75-7b05 is hereby amended to read as follows: 75-7b05. (a) Every ap-
plication ~~hereunder~~ for an initial or a renewal license which will be effective on and after
January 1, 1999, shall be accompanied by ~~an annual~~ a fee ~~of $120, except that:~~ in an amount
fixed by the attorney general pursuant to section 14, and amendments thereto. The appli-
cation fee for a license issued during calendar year 1998, shall not exceed $120.

~~(a) If~~ (b) In addition to the application fee imposed pursuant to subsection (a), if the
applicant is an organization and any of its officers, directors, partners or associates intends
to engage in the business of such organization as a private detective, such officer, director,
partner or associate shall make a separate application for a license and pay a fee ~~of $18;~~ in
an amount fixed by the attorney general pursuant to section 14, and amendments thereto.

~~(b) if the applicant is an individual who submits a verified statement by a licensee that~~
~~the applicant is or will be employed by such licensee, the license fee for such applicant shall~~
~~be $18; or~~

(c) If a license is issued for a period of less than ~~one year~~ two years, the ~~fee~~ fees imposed
pursuant to this section shall be prorated for the months, or fraction thereof, for which the
license is issued.

Sec. 5. K.S.A. 75-7b06 is hereby amended to read as follows: 75-7b06. (a) The license,
when issued, shall be in such form as may be determined by the attorney general and shall
include the:

(1) Name of the licensee;

(2) name under which the licensee is to operate; and

(3) number and date of the license.

(b) The license at all times shall be posted in a conspicuous place in the principal place
of business of the licensee. Upon the issuance of a license, a pocket card of such size, design
and content as determined by the attorney general shall be issued without charge to each
licensee or, if the licensee is an organization, to each of its officers, directors, partners or
associates. Such card shall be evidence that the licensee is duly licensed pursuant to this
act. When any ~~person~~ licensee ~~to whom a card is issued~~ terminates such ~~person's position,~~
~~office or association with the licensee~~ licensee's activities as a private detective, or such
licensee's license has been suspended or revoked, the card shall be surrendered ~~to the licensee~~
~~and~~, within five days ~~thereafter~~ after such termination, suspension or revocation, ~~shall be~~
~~mailed or delivered by the licensee~~ to the attorney general for cancellation. Within 30 days
after any change of address or of any change in its officers, directors, partners or associates,
a licensee shall notify the attorney general thereof. The principal place of business may be
at a residence or at a business address, but it shall be the place at which the licensee
maintains a permanent office.

(c) Applications, on forms prescribed by the attorney general, shall be submitted by all
new officers or partners. The attorney general may suspend or revoke a license issued under
this act if the attorney general determines that, at the time such person became an officer
or partner of a licensee, such person did not meet the requirements of K.S.A. 75-7b04 and
amendments thereto.

Sec. 6. K.S.A. 75-7b07 is hereby amended to read as follows: 75-7b07. (a) Any license
issued under this act shall expire on December 31 of the year of its issuance. On and after
January 1, 1999, any license issued under this act shall expire on December 31 of the year
following the year when issued and may be renewed every two years thereafter. Renewal of
any such license shall be made in the manner prescribed for obtaining an original license,
including payment of the appropriate fee required by K.S.A. 75-7b05, and amendments
thereto, except that:

(1) The signing of the application by five or more citizens as required by K.S.A. 75-
7b04, and amendments thereto, shall not be required if such application for renewal is
verified and acknowledged by the applicant before an officer authorized to administer oaths;

(2) the application ~~upon renewal need only provide~~ for renewal shall provide the infor-
mation required of original applicants if the information shown on the original application
or any renewal thereof on file with the attorney general is no longer accurate;

(3) a new photograph shall be submitted with the application for renewal only if the
photograph on file with the attorney general has been on file more than two years; and

(4) additional information may be required by rules and regulations adopted by the
attorney general.

(b) ~~A licensee shall at all times be legally responsible for the good conduct of each of~~
~~the licensee's employees or agents while engaged in the business of the licensee, and the~~
~~licensee is legally responsible for any acts committed by such licensee's employees or agents~~
~~which are in violation of this act.~~

~~(c)~~ A license issued under this act shall not be assignable.

Sec. 7. K.S.A. 75-7b08 is hereby amended to read as follows: 75-7b08. (a) Any licensee
or individual who is an officer, director, partner or associate thereof shall ~~divulge to the~~
~~attorney general, any law enforcement officer or county attorney, or his or her representa-~~
~~tive, any information he or she may acquire as to any criminal offense, but he or she shall~~
~~not divulge~~ notify the appropriate law enforcement agency with jurisdiction over the matter
of any information the licensee or individual may acquire as to any criminal offense. The
licensee or individual shall not disclose to any other person, except as ~~he or she~~ the licensee
or individual may be required by law so to do, any information acquired by ~~him or her~~ the
licensee or individual except at the direction of the employer or client for whom the infor-
mation was obtained.

(b) No licensee or individual who is an officer, director, partner, associate or employee
thereof shall:

(1) Knowingly make any false report to ~~his or her~~ the licensee's or individual's employer
or client for whom information was being obtained;

(2) cause any written report to be submitted to a client except by the licensee or a
designee of the licensee, and the person submitting the report shall exercise diligence in
ascertaining whether or not the facts and information in such report are true and correct;

(3) furnish or perform any services on a contingent or percentage basis, or make or
enter into any agreement for furnishing services of any kind or character, by the terms or
conditions of which agreement the compensation to be paid for such services to the licensee
is partially or wholly contingent, or based upon a percentage of the amount of money or
property recovered, or dependent in any way upon the result achieved.;

(4) use a badge in connection with the activities of the licensee's business other than a
firearm permit badge authorized by this act;

(5) use a title, wear a uniform, use an insignia or an identification card or make any
statement with the intent to give an impression that ~~he or she~~ the licensee or individual is
connected in any way with the federal government, a state government or any political
subdivision of a state government.;

(6) use an alias in connection with the activities of the licensee's business;

(7) enter any private building or portion thereof without the consent of the owner or of
the person in legal possession thereof;

(8) appear as an assignee party in any proceeding involving claim and delivery, replevin
or other possessory action, action to foreclose a chattel mortgage, mechanic's lien, materi-
alman's lien, or any other lien.;

(9) permit an unlicensed employee or agent in ~~his or her~~ the employee's or agent's own
name to advertise, engage clients, furnish reports or present bills to clients, or in any manner
whatever conduct business for which a license is required under this act~~; and all~~ or conduct
business of the licensee ~~shall be conducted~~ other than in the name of and under the control
of the licensee; or

(10) manufacture or produce any false evidence.

Sec. 8. K.S.A. 75-7b10 is hereby amended to read as follows: 75-7b10. ~~Every~~ An ad-
vertisement by a licensee soliciting or advertising business shall ~~contain his or her name and~~
~~address as they appear in the records of the attorney general~~ not contain any false, misleading
or deceptive information. A licensee shall not advertise or conduct business from any location
other than that shown on the records of the attorney general as ~~his or her~~ the licensee's
principal place of business unless ~~he or she~~ the licensee has received a branch office certif-
icate for such location after compliance with the provisions of this act and such additional
requirements necessary for the protection of the public as the attorney general may prescribe
by ~~regulation~~ rules and regulations. A licensee shall notify the attorney general in writing
within ~~ten (10)~~ 10 days after closing or changing the location of a branch office.

Sec. 9. K.S.A. 75-7b11 is hereby amended to read as follows: 75-7b11. (a) Except as
provided in subsection (b), no license shall be issued under this act unless the applicant: (1)
Files with the attorney general a corporate surety bond executed by a company authorized
to do business in this state in ~~the sum of $10,000, or~~ an amount of $100,000 or more; (2)
files with the attorney general a certificate of insurance showing that the applicant has
general liability insurance providing coverage in an amount of $100,000 or more for bodily
injury or property damage caused by negligence, and errors or omissions~~, or intentional acts~~
~~(including assault and battery) and for personal injury caused by libel, slander, false arrest,~~
~~false imprisonment, invasion of privacy, wrongful entry, wrongful eviction or malicious pros-~~
~~ecution,~~; or (3) deposits ~~$10,000~~ $100,000 or more in cash with the state treasurer. The
bond or return of the deposit shall be conditioned on the faithful and honest conduct of
business by ~~such~~ the applicant.

(b) No applicant who is or will be employed by a licensee to engage in the business of
the licensee shall be required to obtain ~~such~~ the bond or certificate of insurance or make
~~such~~ the deposit provided for by this section.

(c) The attorney general shall approve each bond filed under this section as to form,
execution and sufficiency of the sureties. Such bond shall be taken in the name of the people
of this state and may be continuing in nature. The attorney general shall approve any cer-
tificate of insurance filed under this section as to form, execution and sufficiency of coverage
evidenced thereby.

(d) Any person injured by any unlawful act of an applicant or an applicant's employees
or agents, whether licensed or not, may bring an action on the applicant's bond or deposit
in such person's own name to recover damages suffered by reason of such unlawful act.

Sec. 10. K.S.A. 75-7b13 is hereby amended to read as follows: 75-7b13. (a) The attorney
general may censure, limit, condition, suspend or revoke a license issued under this act if,
after notice and opportunity for hearing in accordance with the provisions of the Kansas
administrative procedure act, the attorney general determines that the licensee or, if the
licensee is an organization, any of its officers, directors, partners or associates has:

(1) Made any false statement or given any false information in connection with an ap-
plication for a license or a renewal or reinstatement thereof;

(2) violated any provisions of this act;

(3) violated any ~~rule~~ rules and regulations of the attorney general adopted pursuant to
the authority contained in this act;

(4) been convicted of a felony, vehicular homicide, assault, battery, assault of a law
enforcement officer, misdemeanor battery against a law enforcement officer, criminal re-
straint, sexual battery, endangering a child, intimidation of a witness or victim or any crime
involving moral turpitude or illegally using, carrying, or possessing a dangerous weapon
subsequent to ~~or within ten (10) years prior to~~ the issuance of the license;

(5) impersonated, or permitted or aided and abetted an employee to impersonate, a law
enforcement officer or employee of the United States of America, or of any state or political
subdivision thereof;

(6) committed or permitted any employee to commit any act, while the license was
expired, which would be cause for the suspension or revocation of a license, or grounds for
the denial of an application for a license;

(7) willfully failed or refused to render to a client services or a report as agreed between
the parties, and for which compensation has been paid or tendered in accordance with the
agreement of the parties;

(8) committed assault, battery or kidnapping, or used force or violence on any person
without proper justification;

(9) knowingly violated, or advised, encouraged or assisted the violation of, any court
order or injunction in the course of business as a licensee;

(10) acted as a runner or capper for any attorney; or

(11) used any letterhead, advertisement or other printed matter, or in any manner what-
ever represented that such person is an instrumentality of the federal government, a state
or any political subdivision thereof;

(12) used false, misleading or deceptive information in any advertisement, solicitation
or contract for business;

(13) has committed any act in the course of the licensee's business constituting dishonesty
or fraud;

(14) misused a firearm permit badge; or

~~(11)~~ (15) committed any act which is a ground for denial of an application for a license
under this act.

(b) The record of conviction, or a certified copy thereof, shall be conclusive evidence
of such conviction as that term is used in this section or in K.S.A. 75-7b04, and amendments
thereto, and a plea or verdict of guilty or a conviction following a plea of nolo contendere is
deemed to be a conviction within the meaning thereof.

(c) Upon final disposition of the proceedings for a violation relating to the misuse of a
firearm permit badge, the attorney general may bring an action for violation of K.S.A. 21-
3824 or K.S.A. 21-3825, and amendments thereto.

Sec. 11. K.S.A. 75-7b15 is hereby amended to read as follows: 75-7b15. (a) Each private
detective or detective agency operating as provided in this act, shall be required to keep a
complete record of the business transactions of such detective or detective agency, and shall
retain such records for at least three years.

(b) Upon the service of a subpoena ~~order of~~ issued by the attorney general, or court
order of a court of competent jurisdiction which is based on the complaint, supported by
oath or affirmation and particularly describing the records and reports, any licensed private
detective who is the owner, partner, director, corporate officer or custodian of records of
business transactions shall give free and full opportunity to inspect the same and to inspect
reports made~~; but~~. Any information obtained by the attorney general shall be kept confi-
dential, except as may be necessary to commence and prosecute any legal proceedings.
~~When any detective or detective agency requires any report of an agent or employee to be~~
~~made verbally, a digest shall be made of such verbal report and this digest, together with~~
~~the written reports, shall be kept on file in the office of the private detective or detective~~
~~agency.~~ The subpoenas issued by the attorney general to private detective licensees shall
comply with any confidentiality standards or legal limitations imposed by privacy acts, fair
credit reporting acts, polygraph acts, judicially-recognized privileged communications and
the bill of rights of both the United States and Kansas constitutions.

~~(b)~~ (c) For the purpose of enforcing the provisions of this act, and in making investi-
gations relating to any violation thereof or to the character, competency and integrity of the
applicants or licensees hereunder, and for the purpose of investigating the business, business
practices and business methods of any applicant or licensee~~, or of the officers, directors,~~
~~partners or associates thereof~~, the attorney general shall have ~~the~~ limited power to subpoena
as heretofore defined, and bring before ~~him or her~~ the attorney general any person in this
state and require the production of any books, records or papers which ~~he or she~~ the attorney
general deems relevant to the inquiry.

(d) The attorney general also may administer an oath to and take the testimony of any
person, or cause ~~his or her~~ such person's deposition to be taken~~, except that any applicant~~
~~or licensee or officer, director, partner or associate thereof shall not be entitled to any fees~~
~~or mileage~~.

(e) A subpoena issued under this section shall be governed by the code of civil proce-
dure. Any person duly subpoenaed, who fails to obey such subpoena without reasonable
cause or objection or without such cause refuses to be examined or to answer any legal or
pertinent question as to the character or qualification of such applicant or licensee or such
applicant's or licensee's business, business practices and methods or such violations, upon
conviction by a court of competent jurisdiction shall be guilty of a class A nonperson mis-
demeanor.

(f) The testimony of witnesses in any investigative proceeding shall be under oath, and
willful false swearing in any such proceeding shall be perjury.

Sec. 12. K.S.A. 75-7b17 is hereby amended to read as follows: 75-7b17. (a) No licensee
may carry a firearm concealed on or about the licensee's person unless the licensee obtains
a permit therefor, upon application to the attorney general. No permit shall be issued to
any licensee unless such licensee:

(1) Demonstrates to the attorney general the need to carry a firearm in order to protect
the licensee's life or property or to protect the life or property of a client of licensee and
submits such proof as required by the attorney general to establish the necessity for the
issuance of a firearm permit; and

(2) has received training in the handling of firearms and the lawful use of force from a
trainer certified pursuant to K.S.A. ~~75-7b20~~ 75-7b21, and amendments thereto, and submits
such proof as required by the attorney general to show satisfactory completion of such
training.

(b) An application for a firearm permit which will be effective on and after January 1,
1999, by a licensee shall be made in the manner and form prescribed by the attorney general
and shall be accompanied by a fee ~~of $10. Each such~~ in an amount fixed by the attorney
general pursuant to section 14, and amendments thereto. The application fee for a firearm
permit issued during calendar year 1998, shall not exceed $10. Such application shall be
made a part of and supplemental to such licensee's application for a license under this act.
The application shall contain:

(1) The applicant's name and business and residence addresses;

(2) the make or manufacturer's name, model, serial number, caliber, gauge and any
other identifying information concerning the firearm or firearms to be carried by the ap-
plicant;

(3) a full set of the applicant's fingerprints;

(4) a color photograph of the applicant taken within 30 days prior to date of application
and suitable for identification purposes;

(5) such other information as deemed necessary by the attorney general.

(c) (1) If the attorney general is satisfied that it is necessary for an applicant under this
section to carry a firearm, the attorney general shall issue to such licensee a firearm permit
identification card, the form of which shall be approved by the attorney general. Such card
shall bear the licensee's color photograph, thumb prints and signature and a description of
the firearm or firearms to be carried. ~~Such permit shall be valid only for the calendar year~~
~~in which it is issued, and the~~ The licensee shall have such permit in the licensee's possession
when carrying a firearm. Identification cards and firearm permits shall be numbered con-
secutively, and the attorney general shall maintain a current file of all valid firearm permits.

(2) For the purpose of safety and emergency identification, licensees issued a firearm
permit under this act to carry a concealed firearm may carry a firearm permit badge. The
badge shall be carried in such a manner that at all times when the badge is visible the private
detective's firearm permit identification card issued pursuant to paragraph (1) of this sub-
section also shall be visible. The attorney general shall determine the size, design and other
specifications of the badge. The words ``licensed private detective'' shall be stated clearly on
the face of the badge. The cost of the badge shall be borne by the licensee. Whenever any
licensee terminates such licensee's activities as a private detective, or such licensee's license
has been suspended or revoked, such badge shall be surrendered within five days following
such termination, suspension or revocation to the attorney general for cancellation. Every
licensee possessing a valid firearm permit badge shall report to the attorney general any loss
of the badge within 72 hours of the discovery of the loss.

(d) Any licensee granted a firearm permit ~~must~~ shall present the permit identification
card and firearm permit badge upon request by a ~~proper authority, including private persons~~
~~upon private property~~ law enforcement officer acting within the officer's jurisdictional au-
thority, or by a private person upon private property if the person owns or has legal control
of the private property, to demonstrate the licensee's permit to carry a firearm. Every
licensee possessing a valid firearm permit shall report to the attorney general any change
of employment status, change of firearm or firearms to be carried, loss of identification card
or change of personal or business address. Every licensee who discharges a firearm for any
reason other than test firing, firearm training or target practice shall report the discharge
to the attorney general within 24 hours, together with a written report giving full particulars
and reason for such discharge.

(e) The attorney general ~~may suspend or~~ shall revoke any firearm permit ~~for cause~~ if
the licensee's private detective license has been suspended or revoked. The attorney general
may suspend or revoke any firearm permit if the licensee has used a firearm in a manner
inconsistent with the lawful use of force or if the licensee can no longer demonstrate a need
to carry a firearm, pursuant to subsection (a)(1). An order of suspension or revocation, and
hearing thereon, shall be subject to the provisions of the Kansas administrative procedure
act. The attorney general ~~may~~ shall recall any suspended or revoked firearm permit identi-
fication card ~~when in the attorney general's opinion the holder thereof no longer requires~~
~~such firearm permit~~.

(f) A licensee to whom a firearm permit is granted ~~hereunder~~ under this section shall
be deemed to have no greater justification in the use of force than a private person as
prescribed by the Kansas criminal code~~, and nothing~~. Nothing in this act shall be construed
as limiting the civil liability of any such licensee with respect to the use of force.

(g) No firearm permit shall be issued to any:

(1) Organization;

(2) individual who has been declared, by any court of competent jurisdiction, to be
incapacitated or mentally ill and has not been restored to capacity or mental health; or

(3) individual who suffers from alcohol or narcotics addiction or dependence.

(h) A firearm permit issued under this act shall expire on December 31 of the year of
its issuance, except that on and after January 1, 1999, a firearm permit issued under this
act shall expire on December 31 of the year following the year when issued. Renewal of any
such firearm permit shall be made in a form and manner prescribed by the attorney general
and subject to such conditions as required by rules and regulations adopted by the attorney
general. Renewal of a firearm permit shall be based on a demonstrated continuing need to
carry a firearm in accordance with subsection (a)(1).

Sec. 13. K.S.A. 75-7b21 is hereby amended to read as follows: 75-7b21. (a) The attorney
general shall certify persons who are qualified to train private detectives in the handling of
firearms and the lawful use of force.

(b) In order to be certified as a trainer under this section, ~~a trainer or, if a trainer is an~~
~~organization, each officer, director, partner or associate~~ an applicant shall:

(1) Is Be 21 or more years of age;

(2) ~~has~~ have a minimum of one-year supervisory experience with a private detective
agency, a private patrol operator, a proprietary investigative or security organization or any
federal, United States military, state, county or city law enforcement agency; ~~and~~

(3) is be personally qualified to train private detectives in the handling of firearms and
the lawful use of force.; and

(4) not have been convicted of a felony or, within 10 years immediately prior to the date
of application, been convicted of a misdemeanor. If the applicant is not licensed as a private
detective, the applicant shall submit two classifiable sets of the applicant's fingerprints one
of which shall be submitted to the federal bureau of investigation for a fingerprint check for
any criminal history of the applicant.

(c) Persons wishing to become certified trainers shall make application to the attorney
general on a form prescribed by the attorney general ~~and~~. Applications for a firearm training
certificate which will be effective on and after January 1, 1999, shall be accompanied by a
fee ~~of $25~~ in an amount fixed by the attorney general pursuant to section 14, and amend-
ments thereto. The fee for a firearm training certificate issued during calendar year 1998,
shall not exceed $25. The application shall contain a statement of the plan of operation of
for the training offered by the applicant and the materials and aids to be used and any other
information required by the attorney general.

(d) A certificate shall be granted to a trainer if the attorney general finds that the ap-
plicant ~~or, if the applicant is an organization, each officer, director, partner or associate~~:

(1) Meets the requirements of subsection (b);

(2) is a person of good character and reputation;

(3) has sufficient knowledge of private detective business, firearms training and the
lawful use of force to be a suitable person to train private detectives in the handling of
firearms and the lawful use of force;

(4) has supplied all required information to the attorney general; and

(5) has paid the required fee.

(e) The certificate issued pursuant to this section shall expire on December 31 of the
year ~~in which~~ following the year when issued and shall be renewable ~~annually~~ biennially
upon application and payment of ~~an annual fee of $25~~ a fee in an amount fixed by the
attorney general pursuant to section 14, and amendments thereto.

New Sec. 14. (a) In each fiscal year, the attorney general shall determine the amount
of funds which will be required during the next ensuing fiscal year to properly administer
the laws which the attorney general is directed to enforce and administer relating to the
licensure and regulation of private detectives and private detective agencies. The attorney
general, by the adoption of rules and regulations, shall fix fees in accordance with this section
in such reasonable sums as may be necessary for such purposes.

(b) After fixing such fees, the attorney general may charge and collect the fees, in ad-
vance for the following purposes, subject to the following limitations:

For initial application forms and materials, not to exceed

$ 15

For application for licensure, not to exceed

250

For application by an officer, director, partner or associate of an organization,if required to be licensed pursuant to K.S.A. 75-7b05, and amendmentsthereto, not to exceed

100

For renewal of license, not to exceed

~~250~~ 175

For renewal of license of an officer, director, partner or associate of an or-ganization, if required to be licensed by K.S.A. 75-7b05, and amendmentsthereto, not to exceed

100

For application for a firearm permit, not to exceed

For renewal of a firearm permit, not to exceed

For application for a firearm trainers permit, not to exceed

100

For renewal of a firearm trainers permit, not to exceed

100

(c) A duplicate license shall be issued upon the filing of a statement covering the loss
of the license and the payment of a fee of $5 for the issuance of a duplicate license. Each
duplicate license shall have the word ``duplicate'' stamped across the face thereof and shall
bear the same number as the original.

New Sec. 15. The attorney general shall remit all moneys received from fees or charges
imposed pursuant to this act to the state treasurer at least monthly. Upon receipt, the entire
amount shall be deposited in the state treasury and credited to the private detective fee
fund, which is hereby created. Moneys in the private detective fee fund shall be used solely
for the purpose of administering and implementing K.S.A. 75-7b01 through 75-7b21, and
amendments thereto, and any other law relating to the licensure and regulation of private
detectives and private detective agencies. All expenditures from such fund shall be made in
accordance with appropriation acts upon warrants of the director of accounts and reports
issued pursuant to vouchers approved by the attorney general or by a person or persons
designated by the attorney general.

Sec. 16. K.S.A. 75-7b01, 75-7b03, 75-7b04, 75-7b05, 75-7b06, 75-7b07, 75-7b08, 75-
7b10, 75-7b11, 75-7b13, 75-7b14, 75-7b15, 75-7b16, 75-7b17 and 75-7b21 are hereby re-
pealed.

Sec. 17. This act shall take effect and be in force from and after its publication in the
statute book.'';

In the title, by striking all in lines 15 and 16 and inserting the following:

``AN ACT concerning licensure and regulation of private detectives and private detective
agencies; amending K.S.A. 75-7b01, 75-7b03, 75-7b04, 75-7b05, 75-7b06, 75-7b07, 7b-
7b08, 75-7b10, 75-7b11, 75-7b13, 75-7b15, 75-7b17 and 75-7b21 and repealing the existing
sections; also repealing K.S.A. 75-7b14 and 75-7b16.'';

And your committee on conference recommends the adoption of this report.

Garry G. Boston

Ralph M. Tanner

Ruby Gilbert

Conferees on part of House

Lana Oleen

Laurie Bleeker

Sherman Jones

Conferees on part of Senate

Senator Oleen moved the Senate adopt the Conference Committee report on SB 234.

On roll call, the vote was: Yeas 39, nays 1, present and passing 0; absent or not voting 0.

Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Downey,
Emert, Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger, Harrington, Hensley, Huel-
skamp, Jones, Jordan, Karr, Kerr, Langworthy, Lawrence, Morris, Oleen, Petty, Praeger,
Pugh, Ranson, Salisbury, Salmans, Schraad, Steffes, Steineger, Tyson, Umbarger,
Vidricksen.

Nays: Lee.

The Conference Committee report was adopted.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to Substitute for SB 675, submits the following report:

The Senate accedes to all House amendments to the bill, and your committee on con-
ference further agrees to amend the bill, as printed with House Committee of the Whole
amendments, as follows:

On page 2, in line 37, by striking all after ``housing''; in line 38, by striking all before
``has'';

On page 3, in line 15, after ``financing'', by inserting ``projects of statewide as well as local
importance as defined pursuant to K.S.A. 12-1774 and amendments thereto,'';

On page 6, in line 33, by striking all after the period; by striking all in lines 34 through
37;

On page 8, in line 2, by striking ``, the council on travel and tourism''; in line 24, by striking
``and the council on travel and tourism'';

On page 27, by striking all after line 32;

By striking all on pages 28 through 30;

On page 31, by striking all before line 12 and inserting new material to read as follows:

``Sec. 22. K.S.A. 1997 Supp. 12-1771, as amended by section 1 of 1998 House Bill No.
3036, is hereby amended to read as follows: 12-1771. (a) No city shall exercise any of the
powers conferred by K.S.A. 12-1770 et seq., and amendments thereto, unless the governing
body of such city has adopted a resolution finding that the specific project area sought to
be redeveloped is a blighted area, a conservation area, a major tourism area as defined in
K.S.A. 12-1774, and amendments thereto, or was designated prior to July 1, 1992, as an
enterprise zone pursuant to K.S.A. 12-17,110 prior to its repeal, and the conservation, de-
velopment or redevelopment of such area is necessary to promote the general and economic
welfare of such city. Enterprise zones designated prior to July 1, 1992, may be enlarged by
the city to an area not exceeding 25% of the city's land area upon a finding by the secretary
of the department of commerce and housing that a redevelopment project proposed by the
city which requires the enlargement is of statewide importance and that it will meet the
criteria specified in subsection (a)(1)(D) of K.S.A. 12-1774, and amendments thereto. A
unified government, established pursuant to K.S.A. 12-340 et seq., and amendments thereto,
may enlarge an enterprise zone, established within its jurisdiction prior to July 1, 1992, to
an area not exceeding 200% of the area of the original enterprise zone regardless of whether
such enlargement crosses the boundary of a city within the jurisdiction of the unified gov-
ernment if the secretary of commerce and housing makes the same findings required for
enlargement of an enterprise zone by a city. For the purpose of this subsection, the term
``blighted area'' means an area which: (1) Because of the presence of a majority of the
following factors, substantially impairs or arrests the sound development and growth of the
municipality or constitutes an economic or social liability or is a menace to the public health,
safety, morals or welfare in its present condition and use: (A) A substantial number of
deteriorated or deteriorating structures; (B) predominance of defective or inadequate street
layout; (C) unsanitary or unsafe conditions; (D) deterioration of site improvements; (E)
diversity of ownership; (F) tax or special assessment delinquency exceeding the fair value
of the land; (G) defective or unusual conditions of title; (H) improper subdivision or obsolete
platting or land uses; (I) the existence of conditions which endanger life or property by fire
and other causes; or (J) conditions which create economic obsolescence; or (2) has been
identified by any state or federal environmental agency as being environmentally contami-
nated to an extent that requires a remedial investigation, feasibility study and remediation
or other similar state or federal action; or (3) previously was found by resolution of the
governing body to be a slum or a blighted area under K.S.A. 17-4742 et seq., and amend-
ments thereto.

For the purpose of this subsection, conservation area means any improved area within
the corporate limits of a city in which 50% or more of the structures in the area have an
age of 35 years or more, which area is not yet blighted, but may become a blighted area
due to the existence of a combination of two or more of the following factors: (i) Dilapi-
dation, obsolescence or deterioration of the structures; (ii) illegal use of individual structures;
(iii) the presence of structures below minimum code standards; (iv) building abandonment;
(v) excessive vacancies; (vi) overcrowding of structures and community facilities; or (vii)
inadequate utilities and infrastructure. Not more than 15% of the land area of a city may
be found to be a conservation area.

(b) The powers conferred upon cities under the provisions of K.S.A. 12-1770 et seq.,
and amendments thereto, shall be exercised by cities, as determined by resolution adopted
pursuant to K.S.A. 12-1772, and amendments thereto, (1) in enterprise zones designated
prior to July 1, 1992, including any area added to such enterprise zone after July 1, 1992,
pursuant to subsection (a), (2) in blighted areas of cities and counties described by subsection
(a)(2), (3) in conservation areas of cities, (4) in major tourism areas as defined in K.S.A. 12-
1774 and amendments thereto or (5) in blighted areas of cities, as determined by resolution
adopted pursuant to K.S.A. 17-4742 et seq., and amendments thereto.

(c) Within that portion of the city described in subsection (b), the governing body of a
city may establish a district to be known as a ``redevelopment district''. Within that portion
of a city and county described in subsection (b) excluding paragraph (3) of subsection (b),
the governing body of the city, upon written consent of the board of county commissioners,
may establish a district inclusive of land outside the boundaries of the city to be known as
a redevelopment district. In all such cases, the board of county commissioners, prior to
providing written consent, shall be subject to the same procedure for public notice and
hearing as is required of a city pursuant to subsection (d) for the establishment of a rede-
velopment district. One or more redevelopment projects may be undertaken by a city within
a redevelopment district after such redevelopment district has been established in the man-
ner provided by subsection (d).

(d) Any city proposing to establish a redevelopment district shall adopt a resolution
stating that the city is considering the establishment of a redevelopment district. Such res-
olution shall:

(1) Give notice that a public hearing will be held to consider the establishment of a
redevelopment district and fix the date, hour and place of such public hearing;

(2) describe the proposed boundaries of the redevelopment district;

(3) describe a proposed comprehensive plan that identifies all of the proposed rede-
velopment project areas and that identifies in a general manner all of the buildings and
facilities that are proposed to be constructed or improved in each redevelopment project
area;

(4) state that a description and map of the proposed redevelopment district are available
for inspection at a time and place designated;

(5) state that the governing body will consider findings necessary for the establishment
of a redevelopment district.

Notice shall be given as provided in subsection (c) of K.S.A. 12-1772, and amendments
thereto.

(e) Upon the conclusion of the public hearing, the governing body may adopt a reso-
lution to make any findings required by subsection (a) and may establish the redevelopment
district by ordinance. Such resolution shall contain a comprehensive plan that identifies all
of the proposed redevelopment project areas and identifies in a general manner all of the
buildings and facilities that are proposed to be constructed or improved in each redevel-
opment project area. The boundaries of such district shall not include any area not desig-
nated in the notice required by subsection (d). Subject to the provisions of section 4 of 1998
Senate Bill No. 672, and amendments thereto, any addition of area to the redevelopment
district or any substantial change to the comprehensive plan shall be subject to the same
procedure for public notice and hearing as is required for the establishment of the district.
The boundaries of any such district in a major tourism area including an auto race track
facility located in Wyandotte county, shall, without regard to that portion of the district
pertaining to the auto race track facility, be as follows: Beginning at the intersection of
Interstate 70 and Interstate 435; West along Interstate 70 to 118th Street; North along
118th Street to State Avenue; Northeasterly along proposed relocated State Avenue to 110th
Street; North along 110th Street to Parallel Parkway; East along Parallel Parkway to Inter-
state 435; South along Interstate 435 to Interstate 70.

(f) No privately owned property subject to ad valorem taxes shall be acquired and re-
developed under the provisions of K.S.A. 12-1770 et seq., and amendments thereto, if the
board of county commissioners or the board of education levying taxes on such property
determines by resolution adopted within 30 days following the conclusion of the hearing for
the establishment of the redevelopment district required by subsection (d) that the proposed
redevelopment district will have an adverse effect on such county or school district.

(g) Any redevelopment plan undertaken within the redevelopment district may be in
separate development stages. Each plan shall be adopted according to the provisions of
K.S.A. 12-1772, and amendments thereto, and shall fix a date for completion. Except as
provided herein, any project shall be completed within 20 years from the date of transmittal
of the redevelopment plan or a revision of the plan, as authorized by section 4 of 1998
Senate Bill No. 672, and amendments thereto, to the county pursuant to K.S.A. 12-1776,
and amendments thereto. Projects relating to environmental investigation and remediation
under subsection (i) shall be completed within 20 years from the date a city enters into a
consent decree agreement with the Kansas department of health and environment or the
United States environmental protection agency. A redevelopment project in a major tourism
area for an auto race track facility described in subsection (a)(1)(D) of K.S.A. 12-1774, and
amendments thereto, shall be completed within 30 years from the date the secretary of
commerce and housing makes the finding that the redevelopment project will create a major
tourism area pursuant to subsection (a)(1)(D) of K.S.A. 12-1774, and amendments thereto.

(h) Any increment in ad valorem property taxes resulting from a redevelopment district
undertaken in accordance with the provisions of this act, shall be apportioned to a special
fund for the payment of the cost of the redevelopment project, including the payment of
principal and interest on any special obligation bonds or full faith and credit tax increment
bonds issued to finance such project pursuant to this act and may be pledged to the payment
of principal and interest on such bonds. The maximum maturity on bonds issued to finance
projects pursuant to this act shall not exceed 20 years except that: (1) Such maximum period
of special obligation bonds not payable from revenues described by subsection (a)(1)(D) of
K.S.A. 12-1774, and amendments thereto, issued to finance an auto race track facility shall
not exceed 30 years; and (2) such maximum period, if the governor determines and makes
and submits a finding to the speaker of the house of representatives and the president of
the senate that a maturity greater than 20 years, but in no event exceeding 30 years, is
necessary for the economic feasibility of the financing of an auto race track facility with
special obligation bonds payable primarily from revenues described by subsection (a)(1)(D)
of K.S.A. 12-1774, and amendments thereto, may be extended in accordance with such
determination and finding.

For the purposes of this act, ``increment'' means that amount of ad valorem taxes collected
from real property located within the redevelopment district that is in excess of the amount
which is produced from such property and attributable to the assessed valuation of such
property prior to the date the redevelopment plan or revision of the plan, as authorized by
section 4 of 1998 Senate Bill No. 672, and amendments thereto, is transmitted to the county
pursuant to K.S.A. 12-1776, and amendments thereto.

(i) The governing body of a city, in contracts entered into with the Kansas department
of health and environment or the United States environmental protection agency, may
pledge increments receivable in future years to pay costs directly relating to the investigation
and remediation of environmentally contaminated areas. The provisions in such contracts
pertaining to pledging increments in future years shall not be subject to K.S.A. 10-1101 et
seq. or 79-2925 et seq., and amendments thereto.

(j) Before any redevelopment project is undertaken, a comprehensive feasibility study,
which shows the benefits derived from such project will exceed the costs and that the income
therefrom will be sufficient to pay for the project shall be prepared. Such feasibility study
shall be an open public record.

(k) If a city determines that revenues from sources other than property taxes will be
sufficient to pay any special obligation bonds issued to finance a redevelopment project for
an auto race track facility described in subsection (a)(1)(D) of K.S.A. 12-1774, and amend-
ments thereto, which the secretary of commerce and housing makes a finding that such
project will create a major tourism area pursuant to subsection (a)(1)(D) of K.S.A. 12-1774,
and amendments thereto, all real and personal property, constituting an auto race track
facility described in subsection (a)(1)(D) of K.S.A. 12-1774, and amendments thereto, in
such redevelopment district shall be exempt from property taxation for a period ending on
the earlier of (1) the date which is 30 years after the date of the finding by the secretary of
commerce and housing with respect to such major tourism area; or (2) the date on which
no such special obligation bonds issued to finance such auto race track facility in a major
tourism area remain outstanding.

(l) Any major tourism area may include an additional area not exceeding 400 acres of
additional property, excluding roads and highways, in addition to the property necessary for
the auto race track facility upon a finding by the governor that the development plan and
each project within such additional area will enhance the major tourism area. For the de-
velopment of each project within such additional area the city shall select qualified devel-
opers pursuant to a request for proposals in accordance with written official procedures
approved by the governing body of the city. Any project within such additional area that is
financed in whole or in part by special obligation bonds payable form revenues derived from
subsection (a)(1)(D) of K.S.A. 12-1774, and amendments thereto, shall not be entitled to
any real property tax abatements or the revenues described in K.S.A. 12-1775, and amend-
ments thereto. Any project within such additional area must be approved by the governor
and construction must be commenced by July 1, 2002. The city shall prepare and submit
annually to the governor, the secretary of commerce and housing and the legislature by
each October 1, commencing October 1, 1999 and continuing until October 1, 2002, a
report describing the status of any projects within such additional area. Any business located
in Kansas within 50 miles of a major tourism area that relocates into a major tourism area
shall not receive any of the benefits of K.S.A. 12-1770 et seq., and amendments thereto.'';

Also on page 31, in line 14, after the comma by inserting ``located within a county which
according to the 1990 decennial census contained a population greater than 25,000,''; by
striking line 15; in line 16, by striking all before ``govern-''; and inserting ``reimburse the
unified''; in line 17, by striking ``ment'' and inserting ``of Wyandotte county''; also in line 17,
by striking ``direct''; in line 18, by striking all before the period and inserting ``during the
course of negotiations with the developer as documented to and determined by the secretary
of commerce and housing''; in line 20, by striking ``12-1771'' and inserting ``12-1771 as
amended by section 1 of 1998 House Bill No. 3036'';

In the title, in line 17, by striking ``12-1771'' and inserting ``12-1771 as amended by section
1 of 1998 House Bill No. 3036'';

And your committee on conference recommends the adoption of this report.

Barbara P. Allen

Peggy Palmer

Conferees on part of House

Pat Ranson

Nick Jorden

Jim Barone

Conferees on part of Senate

Senator Ranson moved the Senate adopt the Conference Committee report on Sub. SB
675.

On roll call, the vote was: Yeas 38, nays 2, present and passing 0; absent or not voting 0.

Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Downey,
Emert, Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger, Harrington, Hensley, Jones,
Jordan, Karr, Kerr, Langworthy, Lawrence, Morris, Oleen, Petty, Praeger, Pugh, Ranson,
Salisbury, Salmans, Schraad, Steffes, Steineger, Tyson, Umbarger, Vidricksen.

Nays: Huelskamp, Lee.

The Conference Committee report was adopted.

MESSAGE FROM THE HOUSE

Announcing passage of SB 5, as amended.

The House concurs in Senate amendments to SB 501.

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 2103.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2103, 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 1, by striking lines 16 through 43;

On page 2, by striking lines 1 through 20 and inserting the following:

``Section 1. K.S.A. 41-102 is hereby amended to read as follows: 41-102. As used in this
act, unless the context clearly requires otherwise:

(a) ``Alcohol'' means the product of distillation of any fermented liquid, whether recti-
fied or diluted, whatever its origin, and includes synthetic ethyl alcohol but does not include
denatured alcohol or wood alcohol.

(b) ``Alcoholic liquor'' means alcohol, spirits, wine, beer and every liquid or solid, pat-
ented or not, containing alcohol, spirits, wine or beer and capable of being consumed as a
beverage by a human being, but shall not include any cereal malt beverage.

(c) ``Beer'' means a beverage, containing more than 3.2% alcohol by weight, obtained
by alcoholic fermentation of an infusion or concoction of barley, or other grain, malt and
hops in water and includes beer, ale, stout, lager beer, porter and similar beverages having
such alcoholic content.

(d) ``Caterer'' has the meaning provided by K.S.A. 41-2601, and amendments thereto.

(e) ``Cereal malt beverage'' has the meaning provided by K.S.A. 41-2701, and amend-
ments thereto.

(f) ``Club'' has the meaning provided by K.S.A. 41-2601, and amendments thereto.

(g) ``Director'' means the director of alcoholic beverage control of the department of
revenue.

(h) ``Distributor'' means the person importing or causing to be imported into the state,
or purchasing or causing to be purchased within the state, alcoholic liquor for sale or resale
to retailers licensed under this act or cereal malt beverage for sale or resale to retailers
licensed under K.S.A. 41-2702, and amendments thereto.

(i) ``Domestic beer'' means beer which contains not more than 8% alcohol by weight
and which is manufactured from agricultural products grown in this state.

(j) ``Domestic fortified wine'' means wine which contains more than 14%, but not more
than 20% alcohol by volume and which is manufactured from agricultural products grown
in this state without rectification.

~~(j)~~ (k) ``Domestic table wine'' means wine which contains not more than 14% alcohol
by volume and which is manufactured without rectification or fortification from agricultural
products grown in this state.

~~(k)~~ (l) ``Drinking establishment'' has the meaning provided by K.S.A. 41-2601, and
amendments thereto.

~~(l)~~ (m) ``Farm winery'' means a winery licensed by the director to manufacture, store
and sell domestic table wine and domestic fortified wine.

~~(m)~~ (n) ``Manufacture'' means to distill, rectify, ferment, brew, make, mix, concoct,
process, blend, bottle or fill an original package with any alcoholic liquor, beer or cereal
malt beverage.

~~(n)~~ (o) (1) ``Manufacturer'' means every brewer, fermenter, distiller, rectifier, wine
maker, blender, processor, bottler or person who fills or refills an original package and others
engaged in brewing, fermenting, distilling, rectifying or bottling alcoholic liquor, beer or
cereal malt beverage.

(2) ``Manufacturer'' does not include a microbrewery or a farm winery.

~~(o)~~ (p) ``Microbrewery'' means a brewery licensed by the director to manufacture, store
and sell domestic beer.

~~(p)~~ (q) ``Minor'' means any person under 21 years of age.

~~(q)~~ (r) ``Nonbeverage user'' means any manufacturer of any of the products set forth
and described in K.S.A. 41-501, and amendments thereto, when the products contain alcohol
or wine, and all laboratories using alcohol for nonbeverage purposes.

~~(r)~~ (s) ``Original package'' means any bottle, flask, jug, can, cask, barrel, keg, hogshead
or other receptacle or container whatsoever, used, corked or capped, sealed and labeled by
the manufacturer of alcoholic liquor, to contain and to convey any alcoholic liquor. Original
container does not include a sleeve.

~~(s)~~ (t) ``Person'' means any natural person, corporation, partnership, trust or association.

~~(t)~~ (u) ``Primary American source of supply'' means the manufacturer, the owner of
alcoholic liquor at the time it becomes a marketable product or the manufacturer's or
owner's exclusive agent who, if the alcoholic liquor cannot be secured directly from such
manufacturer or owner by American wholesalers, is the source closest to such manufacturer
or owner in the channel of commerce from which the product can be secured by American
wholesalers.

~~(u)~~ (v) (1) ``Retailer'' means a person who sells at retail, or offers for sale at retail,
alcoholic liquors.

(2) ``Retailer'' does not include a microbrewery or a farm winery.

~~(v)~~ (w) ``Sale'' means any transfer, exchange or barter in any manner or by any means
whatsoever for a consideration and includes all sales made by any person, whether principal,
proprietor, agent, servant or employee.

~~(w)~~ (x) ``Salesperson'' means any natural person who:

(1) Procures or seeks to procure an order, bargain, contract or agreement for the sale
of alcoholic liquor or cereal malt beverage; or

(2) is engaged in promoting the sale of alcoholic liquor or cereal malt beverage, or in
promoting the business of any person, firm or corporation engaged in the manufacturing
and selling of alcoholic liquor or cereal malt beverage, whether the seller resides within the
state of Kansas and sells to licensed buyers within the state of Kansas, or whether the seller
resides without the state of Kansas and sells to licensed buyers within the state of Kansas.

~~(x)~~ (y) ``Secretary'' means the secretary of revenue.

~~(y)~~ (z) (1) ``Sell at retail'' and ``sale at retail'' refer to and mean sales for use or con-
sumption and not for resale in any form and sales to clubs, licensed drinking establishments,
licensed caterers or holders of temporary permits.

(2) ``Sell at retail'' and ``sale at retail'' do not refer to or mean sales by a distributor, a
microbrewery, a farm winery, a licensed club, a licensed drinking establishment, a licensed
caterer or a holder of a temporary permit.

~~(z)~~ (aa) ``To sell'' includes to solicit or receive an order for, to keep or expose for sale
and to keep with intent to sell.

~~(aa)~~ (bb) ``Sleeve'' means a package of two or more 50-milliliter (3.2-fluid-ounce) con-
tainers of spirits.

~~(bb)~~ (cc) ``Spirits'' means any beverage which contains alcohol obtained by distillation,
mixed with water or other substance in solution, and includes brandy, rum, whiskey, gin or
other spirituous liquors, and such liquors when rectified, blended or otherwise mixed with
alcohol or other substances.

~~(cc)~~ (dd) ``Supplier'' means a manufacturer of alcoholic liquor or cereal malt beverage
or an agent of such manufacturer, other than a salesperson.

~~(dd)~~ (ee) ``Temporary permit'' has the meaning provided by K.S.A. 41-2601, and amend-
ments thereto.

~~(ee)~~ (ff) ``Wine'' means any alcoholic beverage obtained by the normal alcoholic fer-
mentation of the juice of sound, ripe grapes, fruits, berries or other agricultural products,
including such beverages containing added alcohol or spirits or containing sugar added for
the purpose of correcting natural deficiencies.

Sec. 2. K.S.A. 41-302 is hereby amended to read as follows: 41-302. (a) The question
of licensing the retail sale of alcoholic liquors by the package shall be submitted by the
governing body of any city at any regular general city election occurring in such city when-
ever a petition requesting such submission has been filed with the city clerk of any such city
as hereinafter provided.

~~Such question shall not be submitted at any regular general city election in any city more~~
~~often than once in any four years.~~ In cities of the first and second class, any such petition
shall be signed by such number of electors of such city ~~as shall at least equal 30%~~ which
equals 30% or more of the total vote cast in such city at the last general election for the
office of secretary of state~~; and~~. In cities of the third class, any such petition shall be signed
by such number of electors of such city ~~as shall at least equal 40%~~ which equals 40% or
more of the total vote cast at the last general city election held in such city of the third class
for candidates for the city office for which the greatest number of total votes were cast.
Each sheet of each petition shall comply with the provisions of K.S.A. 25-3601 through
25-3607, and amendments thereto. No signature on such petition shall be valid unless ap-
pended to the petition within the last 90 days prior to the date of filing the petition with
the city clerk.

Such petition shall be filed not less than 40 nor more than 60 days prior to the date of
the election. After any such petition has been filed no signature shall be withdrawn and no
signature shall be added. The governing body of the city shall have the power to determine
the sufficiency of any such petition. Any person who signs a proposal or petition ~~contem-~~
~~plated under~~ authorized by this section and who knowingly is not a qualified elector in the
place where such proposal or petition is made, or who aids or abets any other persons in
doing any of the acts mentioned, or any person who bribes, gives or pays any money or
thing of value to any person directly or indirectly to induce such person to sign such proposal
or petition shall be guilty of a misdemeanor and upon conviction thereof shall be punished
by fine of not more than $300 or by imprisonment of not more than 90 days, or by both
such fine and imprisonment in the discretion of the court.

(b) Upon the ballot the proposition shall be stated as follows:

``Shall the sale of alcoholic liquors by the package YES

be licensed in (here insert the name of the city)?'' NO

Voters desiring to vote in favor of the sale of alcoholic liquors by the package shall place
a cross or check mark in the square opposite the word ``Yes'' and those desiring to vote
against the sale of alcoholic liquor by the package shall place a cross or check mark in the
square opposite the word ``No.''

(c) Upon the filing of a sufficient petition ~~or upon the adoption of a proper resolution~~
~~as herein provided~~, the governing body shall call any election required by this section and
notice of such election shall be given in ~~like manner as now provided by law for the notice~~
~~of bond elections in such city~~ the manner provided by the general bond law. The provisions
of the laws of this state relating to election officers, voting places, election places and blanks,
preparation and form of ballots, information to voters, delivery of ballots, calling of elections,
conduct of elections, manner of voting, counting of votes, records and certificates of election,
and recounts of votes, so far as applicable, shall apply to voting on the proposition under
the provisions of this act.

(d) The majority of those voting on the proposition shall be mandatory upon the director
insofar as licensing the sale of such liquors therein by the package is concerned. In the
absence of any vote on the question of licensing the sale of such liquors in cities of the first
and second class wherein a majority of the qualified electors of such city who voted on the
proposition to amend section 10 of article 15 of the constitution of the state of Kansas at
the general election held in November, 1948, shall have voted in favor of the adoption of
such proposition and in cities of the third class located in townships wherein a majority of
the qualified electors voted in favor of such constitutional amendment and in the absence
of any further vote in cities of the first, second or third class in which a majority of the
qualified electors of such city shall have voted at any special or general city election in favor
of the licensing of the sale of alcoholic liquor by the package, the director shall continue to
issue licenses to sell the same by the package therein for periods of one year, subject to all
the terms and conditions of this act.

(e) If a majority of the electors voting at any such election shall vote against licensing
the sale of alcoholic liquors by the package, the holder of any valid existing retailer's license
for premises in such city shall have the right to continue to operate under such license for
a period not to exceed 90 days after the result of such election is canvassed or until the
expiration of such license, whichever period of time is the shorter. ~~In the event that~~ If such
period of time expires before the expiration of the term for which the retailer's license was
issued, ~~then~~ such licensee shall be entitled to a refund of that portion of the license period
which is unavailable to such licensee in accordance with rules and regulations established
by the secretary of revenue.

(f) For the purpose of determining as provided in K.S.A. 41-301, and amendments
thereto, and in this section whether a majority of the qualified electors of a township in
which a city of the third class is located voted against the adoption of the liquor amendment
at the general election held in November, 1948, if any city of the third class is located in
two or more townships, the total vote for and against the amendment in all the townships
in which such city is located shall be used to determine whether such city is located in a
township in which a majority of the qualified electors voted against the amendment.

Sec. 3. K.S.A. 41-308a is hereby amended to read as follows: 41-308a. (a) A farm winery
license shall allow:

(1) The manufacture of domestic table wine and domestic fortified wine and the storage
thereof;

(2) the sale of wine, manufactured by the licensee, to licensed wine distributors, retail-
ers, clubs, drinking establishments and caterers;

(3) the sale, on the licensed premises in the original unopened container to consumers
for consumption off the licensed premises, of wine manufactured by the licensee;

(4) the serving on the licensed premises of samples of wine manufactured by the licensee
or imported under subsection (f), if the premises are located in a county where the sale of
alcoholic liquor is permitted by law in licensed drinking establishments; and

(5) if the licensee is also licensed as a club or drinking establishment, the sale of domestic
wine, domestic fortified wine and other alcoholic liquor for consumption on the licensed
premises as authorized by the club and drinking establishment act.

(b) Upon application and payment of the fee prescribed by K.S.A. 41-310, and amend-
ments thereto, by a farm winery licensee, the director may issue not to exceed two winery
outlet licenses to the farm winery licensee. A winery outlet license shall allow:

(1) The sale, on the licensed premises in the original unopened container to consumers
for consumption off the licensed premises, of wine manufactured by the licensee; and

(2) the serving on the licensed premises of samples of wine manufactured by the licensee
or imported under subsection (f), if the premises are located in a county where the sale of
alcoholic liquor is permitted by law in licensed drinking establishments.

(c) Not less than 60% of the products utilized in the manufacture of domestic table
wine and domestic fortified wine by a farm winery shall be grown in Kansas except when a
lesser proportion is authorized by the director based upon the director's findings and judg-
ment. The label of domestic wine and domestic fortified wine shall indicate that a majority
of the products utilized in the manufacture of the wine at such winery were grown in Kansas.

(d) A farm winery having a capacity of 50,000 gallons per year or more which sells wine
to any distributor shall be required to comply with all provisions of article 4 of chapter 41
of the Kansas Statutes Annotated and of K.S.A. 41-701 through 41-705 and 41-709, and
amendments thereto, in the same manner and subject to the same penalties as a manufac-
turer.

(e) A farm winery or winery outlet may sell domestic wine and domestic fortified wine
in the original unopened container to consumers for consumption off the licensed premises
at any time between 6 a.m. and 12 midnight on any day except Sunday and between 12
noon and 6 p.m. on Sunday. If authorized by subsection (a), a farm winery may serve samples
of domestic wine, domestic fortified wine and wine imported under subsection (f) and serve
and sell domestic wine, domestic fortified wine and other alcoholic liquor for consumption
on the licensed premises at any time when a club or drinking establishment is authorized
to serve and sell alcoholic liquor. If authorized by subsection (b), a winery outlet may serve
samples of domestic wine, domestic fortified wine and wine imported under subsection (f)
at any time when the winery outlet is authorized to sell domestic wine and domestic fortified
wine.

(f) The director may issue to the Kansas state fair or any bona fide group of grape
growers or wine makers a permit to import into this state small quantities of wines. Such
wine shall be used only for bona fide educational and scientific tasting programs and shall
not be resold. Such wine shall not be subject to the tax imposed by K.S.A. 41-501,and
amendments thereto. The permit shall ~~specifically~~ identify specifically the brand and type
of wine to be imported, the quantity to be imported, the tasting programs for which the
wine is to be used and the times and locations of such programs. The secretary shall adopt
rules and regulations governing the importation of wine pursuant to this subsection and the
conduct of tasting programs for which such wine is imported.

(g) A farm winery license or winery outlet license shall apply only to the premises
described in the application and in the license issued and only one location shall be described
in the license.

(h) No farm winery or winery outlet shall:

(1) Employ any person under the age of 18 years in connection with the manufacture,
sale or serving of any alcoholic liquor;

(2) permit any employee of the licensee who is under the age of 21 years to work on
the licensed premises at any time when not under the on-premise supervision of either the
licensee or an employee of the licensee who is 21 years of age or over;

(3) employ any person under 21 years of age in connection with mixing or dispensing
alcoholic liquor; or

(4) employ any person in connection with the manufacture or sale of alcoholic liquor if
the person has been convicted of a felony.

(i) Whenever a farm winery or winery outlet licensee is convicted of a violation of the
Kansas liquor control act, the director may revoke the licensee's license and order forfeiture
of all fees paid for the license, after a hearing before the director for that purpose in ac-
cordance with the provisions of the Kansas administrative procedure act.

(j) This section shall be part of and supplemental to the Kansas liquor control act.

Sec. 4. K.S.A. 1997 Supp. 41-719, as amended by section 8 of 1998 House Bill No.
2899, is hereby amended to read as follows: 41-719. (a) No person shall drink or consume
alcoholic liquor on the public streets, alleys, roads or highways or inside vehicles while on
the public streets, alleys, roads or highways.

(b) No person shall drink or consume alcoholic liquor on private property except:

(1) On premises where the sale of liquor by the individual drink is authorized by the
club and drinking establishment act;

(2) upon private property by a person occupying such property as an owner or lessee
of an owner and by the guests of such person, if no charge is made for the serving or mixing
of any drink or drinks of alcoholic liquor or for any substance mixed with any alcoholic liquor
and if no sale of alcoholic liquor in violation of K.S.A. 41-803, and amendments thereto,
takes place;

(3) in a lodging room of any hotel, motel or boarding house by the person occupying
such room and by the guests of such person, if no charge is made for the serving or mixing
of any drink or drinks of alcoholic liquor or for any substance mixed with any alcoholic liquor
and if no sale of alcoholic liquor in violation of K.S.A. 41-803, and amendments thereto,
takes place;

(4) in a private dining room of a hotel, motel or restaurant, if the dining room is rented
or made available on a special occasion to an individual or organization for a private party
and if no sale of alcoholic liquor in violation of K.S.A. 41-803, and amendments thereto,
takes place; or

(5) on the premises of a microbrewery or farm winery, if authorized by K.S.A. 41-308a
or 41-308b, and amendments thereto.

(c) No person shall drink or consume alcoholic liquor on public property except:

(1) On real property leased by a city to others under the provisions of K.S.A. 12-1740
through 12-1749, and amendments thereto, if such real property is actually being used for
hotel or motel purposes or purposes incidental thereto.

(2) In any state-owned or operated building or structure, and on the surrounding prem-
ises, which is furnished to and occupied by any state officer or employee as a residence.

(3) On premises licensed as a club or drinking establishment and located on property
owned or operated by an airport authority created pursuant to chapter 27 of the Kansas
Statutes Annotated or established by a city having a population of more than 200,000.

(4) On the state fair grounds on the day of any race held thereon pursuant to the Kansas
parimutuel racing act.

(5) On the state fairgrounds, if such liquor is domestic wine or wine imported under
subsection (e) of K.S.A. 41-308a, and amendments thereto, and is consumed only for pur-
poses of judging competitions.

(6) In the state historical museum provided for by K.S.A. 76-2036, and amendments
thereto, on the surrounding premises and in any other building on such premises, as au-
thorized by rules and regulations of the state historical society.

(7) On the premises of any state-owned historic site under the jurisdiction and super-
vision of the state historical society, on the surrounding premises and in any other building
on such premises, as authorized by rules and regulations of the state historical society.

(8) In a lake resort within the meaning of K.S.A. 32-867, and amendments thereto, on
state-owned or leased property.

(9) On property exempted from this subsection (c) pursuant to subsection (d), (e), (f),
(g) or (h).

(d) Any city may exempt, by ordinance, from the provisions of subsection (c) specified
property the title of which is vested in such city.

(e) The board of county commissioners of any county may exempt, by resolution, from
the provisions of subsection (c) specified property the title of which is vested in such county.

(f) The state board of regents may exempt from the provisions of subsection (c) specified
property which is under the control of such board and which is not used for classroom
instruction, where alcoholic liquor may be consumed in accordance with policies adopted
by such board.

(g) The board of regents of Washburn university may exempt from the provisions of
subsection (c) the Mulvane art center and the Bradbury Thompson alumni center on the
campus of Washburn university, and other specified property the title of which is vested in
such board and which is not used for classroom instruction, where alcoholic liquor may be
consumed in accordance with policies adopted by such board.

(h) Any city may exempt, by ordinance, from the provisions of subsection (c) any na-
tional guard armory in which such city has a leasehold interest, if the Kansas military board
consents to the exemption.

(i) The provisions of subsection (c) shall not apply to functions or activities held in the
Hiram Price Dillon house or on its surrounding premises, except to the extent limitations
are established in policies adopted by the legislative coordinating council, as provided by
K.S.A. 75-3682, and amendments thereto.

~~(i)~~ (j) Violation of any provision of this section is a misdemeanor punishable by a fine
of not less than $50 or more than $200 or by imprisonment for not more than six months,
or both.

Sec. 5. K.S.A. 41-102, 41-302 and 41-308a and K.S.A. 1997 Supp. 41-719, as amended
by section 8 of 1998 House Bill No. 2899, are hereby repealed.'';

And by renumbering the remaining section accordingly;

Also on page 2, in line 22, by striking ``Kansas register'' and inserting ``statute book'';

On page 1, in the title, in line 10, by striking all after ``concerning''; by striking line 11;
in line 12, by striking all before ``and'' as it appears for the second time and inserting
``intoxicating liquors and beverages; relating to the regulation and consumption thereof;
amending K.S.A. 41-102, 41-302 and 41-308a and K.S.A. 1997 Supp. 41-719, as amended
by section 8 of 1998 House Bill No. 2899,'';

And your committee on conference recommends the adoption of this report.

Lana Oleen

Nancy Harrington

Sherman Jones

Conferees on part of Senate

Garry G. Boston

Ralph M. Tanner

Ruby Gilbert

Conferees on part of House

Senator Oleen moved the Senate adopt the Conference Committee report on HB 2103.

On roll call, the vote was: Yeas 38, nays 2, present and passing 0; absent or not voting 0.

Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Downey,
Emert, Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger, Harrington, Hensley, Huel-
skamp, Jones, Jordan, Karr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Praeger,
Pugh, Ranson, Salisbury, Salmans, Schraad, Steffes, Steineger, Tyson, Vidricksen.

Nays: Kerr, Umbarger.

The Conference Committee report was adopted.

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: SB 5,
514.

CONSIDERATION OF MOTIONS TO CONCUR OR NONCONCUR

Senator Clark moved the Senate concur in house amendments to SB 5.

SB 5, An act concerning state government; relating to development, management, co-
ordination and planning for the utilization of the state's information technology resources;
abolishing and establishing certain councils, offices and positions; relating to state civil serv-
ice; concerning certain committees of the legislature; relating to certain state agency pur-
chases of and contracts for supplies, materials, equipment and services; amending K.S.A.
46-1604, 46-1701, 46-2101, 46-2102, 68-2003, 75-2935, 75-3739, 75-4703, 75-4707, 75-
4709, 75-5147, 75-6301 and 76-3,100 and K.S.A. 1997 Supp. 46-2201 and 65-34,154; also
repealing K.S.A. 75-4706, 75-4740, 75-4741, 75-4742, 75-4743 and 75-4744.

Senator Kerr offered a substitute motion to nonconcur and a new conference committee
be appointed on SB 5. The substitute motion failed.

On roll call, the vote was: Yeas 26, nays 12, present and passing 1; absent or not voting
1.

Yeas: Barone, Becker, Bond, Brownlee, Clark, Donovan, Downey, Feleciano, Gilstrap,
Goodwin, Hardenburger, Harrington, Hensley, Huelskamp, Jones, Jordan, Karr, Morris,
Petty, Pugh, Salmans, Schraad, Steineger, Tyson, Umbarger, Vidricksen.

Nays: Biggs, Bleeker, Corbin, Emert, Kerr, Langworthy, Lawrence, Oleen, Praeger, Ran-
son, Salisbury, Steffes.

Present and passing: Gooch.

Absent or not voting: Lee.

The Senate concurred.

Senator Emert moved the Senate concur on SB 514.

SB 514, An act relating to compensation and expenses of certain elected state officials;
concerning district attorneys; creating the compensation commission; prescribing the duties
and functions thereof; amending K.S.A. 22a-105 and repealing the existing section.

On roll call, the vote was: Yeas 35, nays 5, present and passing 0; absent or not voting 0.

Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Downey,
Emert, Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger, Harrington, Hensley, Jones,
Jordan, Karr, Langworthy, Lawrence, Morris, Oleen, Petty, Praeger, Ranson, Salmans,
Schraad, Steffes, Steineger, Tyson, Umbarger, Vidricksen.

Nays: Huelskamp, Kerr, Lee, Pugh, Salisbury.

The Senate concurred.

MESSAGE FROM THE HOUSE

Announcing passage of HCR 5059.

Also announcing passage of SCR 1622.

The House adopts the conference committee report on HB 2103.

The House adopts the conference committee report on HB 2185.

The House adopts the conference committee report on HB 2739.

The House adopts the conference committee report on Senate Substitute for HB 2860.

The House adopts the conference committee report on Senate Substitute for HB 2895.

STRICKEN FROM THE CALENDAR

On motion of Senator Emert Sub. SB 686; SR 1867; Sub. HB 2654; HB 2886 were
stricken from the calendar.

INTRODUCTION OF HOUSE CONCURRENT RESOLUTION

HCR 5059, A Concurrent Resolution relating to the 1998 session of the legislature; and
providing for adjournment thereof, was thereupon introduced and read by title.

On emergency motion of Senator Emert, HCR 5059, was adopted by voice vote.

On motion of Senator Emert, and in compliance with HCR 5059, the Senate adjourned
until Sine Die, 10:00 a.m., Tuesday, May 26, 1998.

HELEN A. MORELAND, Journal Clerk.

PAT SAVILLE, Secretary of the Senate.