March 9, 1999

Journal of the House

FORTIETH DAY
______
Hall of the House of Represenatitives
Topeka, KS, Tuesday, March 9, 1999, 11:00 a.m.
 The House met pursuant to adjournment with Speaker pro tem Mays in the chair.

 The roll was called with 124 members present.

 Rep. J. Peterson was excused on verified illness.

   Prayer by Chaplain Svoboda:

                Holy God,

              You are the Ground of our Being.
              You spoke the word, and the world was created.
              you breathed your breath upon the world,
              and life was born.
              You were at the beginning of this world,
              and you will be at the end.
              You care about this world,
              and those who live in it.
              Help us to remember that this world is sacred to You,
              that every person in this world is sacred to You,
              and that you know all our thoughts and actions.
            We ask this for your Name's sake.

            Amen.

     The Pledge of Allegiance was led by Rep. Alldritt.

REFERENCE OF BILLS AND CONCURRENT RESOLUTIONS
 The following bills and resolutions were referred to committees as indicated:

   Financial Institutions: HB 2554.

 Judiciary: HB 2553.

CHANGE OF REFERENCE
 Speaker pro tem Mays announced the withdrawal of HB 2292 from Committee on
Federal and State Affairs and referral to Committee on Health and Human Services.

 Also, the withdrawal of HB 2317, 2276 from Committee on Calendar and Printing and
referral to Committee of the Whole..

 Also, the withdrawal of HB 2387 from Committee on Appropriations and referral to
Committee on Environment.

CONSENT CALENDAR
 Objection was made to SB 27, 28, 29, 30 appearing on the Consent Calendar; the bills
were placed on the calendar under the heading of General Orders.

 No objection was made to HB 2427; SB 32, 33, 34, 35, 36, 37 appearing on the Consent
Calendar for the third day. The bills were advanced to Final Action on Bills and Concurrent
Resolutions.

FINAL ACTION ON BILLS AND CONCURRENT RESOLUTIONS
 HB 2427, An act concerning the state board of technical professions; relating to certain
exemptions from regulation and requirements for licensure or certification; amending K.S.A.
74-7033 and K.S.A. 1998 Supp. 74-7035 and repealing the existing sections, was considered
on final action.

 On roll call, the vote was: Yeas 124; Nays 0; Present but not voting: 0; Absent or not
voting: 1.

 Yeas: Aday, Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Barnes, Beggs, Benlon,
Bethell, Boston, Burroughs, Campbell, Carmody, Compton, Cox, Crow, Dahl, Dean,
Dreher, Edmonds, Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower,
Franklin, Freeborn, Garner, Gatewood, Geringer, Gilbert, Gilmore, Glasscock, Grant,
Gregory, Haley, Hayzlett, Helgerson, Henderson, Henry, Hermes, Holmes, Horst, Howell,
Huff, Humerickhouse, Hutchins, Jenkins, Jennison, Johnson, Johnston, Kirk, Klein, Phil
Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, Light, Lightner, Lloyd, M.
Long, P. Long, Loyd, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKinney,
Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Brien, O'Connor, O'Neal,
Osborne, Palmer, Pauls, E. Peterson, Phelps, Pottorff, Powell, Powers, Ray, Reardon,
Rehorn, Reinhardt, Ruff, Schwartz, Sharp, Showalter, Shriver, Shultz, Sloan, Spangler,
Stone, Storm, Swenson, Tanner, Tedder, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey,
Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wilk.

 Nays: None.

 Present but not voting: None.

 Absent or not voting: J. Peterson.

 The bill passed.

   SB 32, An act repealing K.S.A. 72-77a01, 72-77a02, 72-77a03 and 72-77a04, concerning
the Kansas commission on education restructuring and accountability, was considered on
final action.

 On roll call, the vote was: Yeas 124; Nays 0; Present but not voting: 0; Absent or not
voting: 1.

 Yeas: Aday, Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Barnes, Beggs, Benlon,
Bethell, Boston, Burroughs, Campbell, Carmody, Compton, Cox, Crow, Dahl, Dean,
Dreher, Edmonds, Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower,
Franklin, Freeborn, Garner, Gatewood, Geringer, Gilbert, Gilmore, Glasscock, Grant,
Gregory, Haley, Hayzlett, Helgerson, Henderson, Henry, Hermes, Holmes, Horst, Howell,
Huff, Humerickhouse, Hutchins, Jenkins, Jennison, Johnson, Johnston, Kirk, Klein, Phil
Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, Light, Lightner, Lloyd, M.
Long, P. Long, Loyd, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKinney,
Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Brien, O'Connor, O'Neal,
Osborne, Palmer, Pauls, E. Peterson, Phelps, Pottorff, Powell, Powers, Ray, Reardon,
Rehorn, Reinhardt, Ruff, Schwartz, Sharp, Showalter, Shriver, Shultz, Sloan, Spangler,
Stone, Storm, Swenson, Tanner, Tedder, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey,
Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wilk.

 Nays: None.

 Present but not voting: None.

 Absent or not voting: J. Peterson.

 The bill passed.

   SB 33, An act repealing K.S.A. 72-1626b, concerning bond issuances authorized before
school district unification, was considered on final action.

 On roll call, the vote was: Yeas 121; Nays 3; Present but not voting: 0; Absent or not
voting: 1.

 Yeas: Aday, Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Barnes, Beggs, Benlon,
Bethell, Boston, Burroughs, Campbell, Carmody, Compton, Cox, Crow, Dahl, Dean,
Dreher, Edmonds, Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower,
Franklin, Freeborn, Garner, Gatewood, Geringer, Gilbert, Gilmore, Glasscock, Grant,
Gregory, Haley, Hayzlett, Helgerson, Henderson, Henry, Hermes, Holmes, Horst, Howell,
Huff, Humerickhouse, Hutchins, Jenkins, Jennison, Johnson, Johnston, Kirk, Klein, Phil
Kline, Phill Kline, Krehbiel, Kuether, Lane, Larkin, Light, Lightner, Lloyd, M. Long, P.
Long, Loyd, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKinney, Minor,
Mollenkamp, Morrison, Myers, Nichols, O'Brien, O'Connor, O'Neal, Osborne, Palmer,
Pauls, E. Peterson, Phelps, Pottorff, Powell, Powers, Ray, Reardon, Rehorn, Reinhardt,
Ruff, Schwartz, Sharp, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson,
Tanner, Tedder, Thimesch, Toelkes, Tomlinson, Toplikar, Vining, Wagle, Weber, Weiland,
Wells, Welshimer, Wilk.

 Nays: Landwehr, Neufeld, Vickrey.

 Present but not voting: None.

 Absent or not voting: J. Peterson.

 The bill passed.

   SB 34, An act repealing K.S.A. 72-9401, 72-9402, 72-9403, 72-9404, 72-9406, 72-9407
and 72-9408, concerning the state minimum competency assessment program, was
considered on final action.

 On roll call, the vote was: Yeas 121; Nays 3; Present but not voting: 0; Absent or not
voting: 1.

 Yeas: Aday, Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Barnes, Beggs, Benlon,
Bethell, Boston, Burroughs, Campbell, Carmody, Compton, Cox, Crow, Dahl, Dean,
Dreher, Edmonds, Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower,
Franklin, Freeborn, Garner, Gatewood, Geringer, Gilbert, Gilmore, Glasscock, Grant,
Gregory, Haley, Hayzlett, Helgerson, Henderson, Henry, Hermes, Holmes, Horst, Huff,
Humerickhouse, Hutchins, Jenkins, Jennison, Johnson, Johnston, Kirk, Klein, Phil Kline,
Phill Kline, Krehbiel, Kuether, Lane, Larkin, Light, Lightner, Lloyd, M. Long, P. Long,
Loyd, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKinney, Minor,
Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Brien, O'Connor, O'Neal, Osborne,
Palmer, Pauls, E. Peterson, Phelps, Pottorff, Powell, Powers, Ray, Reardon, Rehorn,
Reinhardt, Ruff, Schwartz, Sharp, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm,
Swenson, Tanner, Tedder, Thimesch, Toelkes, Tomlinson, Vickrey, Vining, Wagle, Weber,
Weiland, Wells, Welshimer, Wilk.

 Nays: Howell, Landwehr, Toplikar.

 Present but not voting: None.

 Absent or not voting: J. Peterson.

 The bill passed.

   SB 35, An act repealing 72-6761a and 72-6761b, concerning the validation of certain
bond issuances, was considered on final action.

 On roll call, the vote was: Yeas 120; Nays 4; Present but not voting: 0; Absent or not
voting: 1.

 Yeas: Aday, Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Barnes, Beggs, Benlon,
Bethell, Boston, Burroughs, Campbell, Carmody, Compton, Cox, Crow, Dahl, Dean,
Dreher, Edmonds, Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower,
Franklin, Freeborn, Garner, Gatewood, Geringer, Gilbert, Gilmore, Glasscock, Grant,
Gregory, Hayzlett, Helgerson, Henderson, Henry, Hermes, Holmes, Horst, Howell, Huff,
Humerickhouse, Hutchins, Jenkins, Jennison, Johnson, Johnston, Kirk, Klein, Phil Kline,
Phill Kline, Krehbiel, Kuether, Lane, Larkin, Light, Lightner, Lloyd, M. Long, P. Long,
Loyd, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKinney, Minor,
Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Brien, O'Connor, O'Neal, Osborne,
Palmer, Pauls, E. Peterson, Phelps, Pottorff, Powell, Powers, Ray, Reardon, Rehorn,
Reinhardt, Ruff, Schwartz, Sharp, Showalter, Shriver, Shultz, Sloan, Stone, Storm, Swenson,
Tanner, Tedder, Thimesch, Toelkes, Tomlinson, Toplikar, Vining, Wagle, Weber, Weiland,
Wells, Welshimer, Wilk.

 Nays: Haley, Landwehr, Spangler, Vickrey.

 Present but not voting: None.

 Absent or not voting: J. Peterson.

 The bill passed.

   SB 36, An act repealing K.S.A. 72-5303, concerning the provision and maintenance of
water closets by boards of education, was considered on final action.

 On roll call, the vote was: Yeas 111; Nays 13; Present but not voting: 0; Absent or not
voting: 1.

 Yeas: Aday, Adkins, Alldritt, Allen, Ballard, Barnes, Beggs, Benlon, Bethell, Burroughs,
Campbell, Carmody, Compton, Cox, Crow, Dahl, Dean, Dreher, Edmonds, Empson,
Faber, Farmer, Feuerborn, Findley, Flaharty, Flower, Franklin, Freeborn, Garner,
Gatewood, Geringer, Gilbert, Gilmore, Glasscock, Grant, Haley, Hayzlett, Helgerson,
Henderson, Henry, Hermes, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins,
Jenkins, Jennison, Johnson, Johnston, Kirk, Phil Kline, Phill Kline, Krehbiel, Kuether, Lane,
Larkin, Light, Lightner, Lloyd, M. Long, Loyd, Mason, Mayans, Mays, McCreary,
McKechnie, McKinney, Minor, Mollenkamp, Morrison, Myers, Neufeld, O'Brien,
O'Connor, O'Neal, Osborne, Palmer, E. Peterson, Phelps, Pottorff, Powell, Powers, Ray,
Reardon, Rehorn, Reinhardt, Ruff, Schwartz, Sharp, Showalter, Shriver, Shultz, Sloan,
Stone, Storm, Swenson, Tanner, Tedder, Thimesch, Toelkes, Tomlinson, Vickrey, Vining,
Wagle, Weber, Weiland, Wells, Welshimer, Wilk.

 Nays: Aurand, Ballou, Boston, Flora, Gregory, Klein, Landwehr, P. Long, McClure,
Nichols, Pauls, Spangler, Toplikar.

 Present but not voting: None.

 Absent or not voting: J. Peterson.

 The bill passed.

   SB 37, An act repealing K.S.A. 72-1114, 72-1115 and 72-1116, concerning school district
self evaluation and accreditation, was considered on final action.

 On roll call, the vote was: Yeas 123; Nays 1; Present but not voting: 0; Absent or not
voting: 1.

 Yeas: Aday, Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Barnes, Beggs, Benlon,
Bethell, Boston, Burroughs, Campbell, Carmody, Compton, Cox, Crow, Dahl, Dean,
Dreher, Edmonds, Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower,
Franklin, Freeborn, Garner, Gatewood, Geringer, Gilbert, Gilmore, Glasscock, Grant,
Gregory, Haley, Hayzlett, Helgerson, Henderson, Henry, Hermes, Holmes, Horst, Huff,
Humerickhouse, Hutchins, Jenkins, Jennison, Johnson, Johnston, Kirk, Klein, Phil Kline,
Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, Light, Lightner, Lloyd, M. Long,
P. Long, Loyd, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKinney, Minor,
Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Brien, O'Connor, O'Neal, Osborne,
Palmer, Pauls, E. Peterson, Phelps, Pottorff, Powell, Powers, Ray, Reardon, Rehorn,
Reinhardt, Ruff, Schwartz, Sharp, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm,
Swenson, Tanner, Tedder, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle,
Weber, Weiland, Wells, Welshimer, Wilk.

 Nays: Howell.

 Present but not voting: None.

 Absent or not voting: J. Peterson.

 The bill passed.

   HB 2011, An act relating to sales taxation; exempting purchases by certain political
subdivisions and water districts therefrom; amending K.S.A. 1998 Supp. 79-3606 and
repealing the existing section, was considered on final action.

 On roll call, the vote was: Yeas 120; Nays 4; Present but not voting: 0; Absent or not
voting: 1.

 Yeas: Aday, Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Barnes, Beggs, Benlon,
Bethell, Boston, Burroughs, Campbell, Compton, Cox, Dahl, Dean, Dreher, Edmonds,
Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Freeborn, Garner,
Gatewood, Geringer, Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett,
Helgerson, Henderson, Henry, Hermes, Holmes, Horst, Howell, Huff, Humerickhouse,
Hutchins, Jenkins, Jennison, Johnson, Johnston, Kirk, Klein, Phil Kline, Phill Kline,
Krehbiel, Kuether, Landwehr, Lane, Larkin, Light, Lightner, Lloyd, M. Long, P. Long,
Loyd, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKinney, Minor,
Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Brien, O'Connor, O'Neal, Osborne,
Palmer, Pauls, E. Peterson, Phelps, Pottorff, Powell, Powers, Ray, Reardon, Rehorn,
Reinhardt, Ruff, Schwartz, Sharp, Showalter, Shriver, Shultz, Sloan, Stone, Storm, Swenson,
Tanner, Tedder, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber,
Weiland, Wells, Welshimer, Wilk.

 Nays: Carmody, Crow, Franklin, Spangler.

 Present but not voting: None.

 Absent or not voting: J. Peterson.

 The bill passed, as amended.

   HB 2446, An act concerning accountancy; prohibiting certain acts in the practice thereof;
amending K.S.A. 1998 Supp. 1-316 and repealing the existing section, was considered on
final action.

 On roll call, the vote was: Yeas 121; Nays 1; Present but not voting: 2; Absent or not
voting: 1.

 Yeas: Aday, Adkins, Alldritt, Allen, Aurand, Ballard, Barnes, Beggs, Benlon, Bethell,
Boston, Burroughs, Campbell, Carmody, Compton, Cox, Crow, Dahl, Dean, Dreher,
Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Freeborn,
Garner, Gatewood, Geringer, Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett,
Helgerson, Henderson, Henry, Hermes, Holmes, Horst, Howell, Huff, Humerickhouse,
Hutchins, Jennison, Johnson, Johnston, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel,
Kuether, Landwehr, Lane, Larkin, Light, Lightner, Lloyd, M. Long, P. Long, Loyd, Mason,
Mayans, Mays, McClure, McCreary, McKechnie, McKinney, Minor, Mollenkamp,
Morrison, Myers, Neufeld, Nichols, O'Brien, O'Connor, O'Neal, Osborne, Palmer, Pauls,
E. Peterson, Phelps, Pottorff, Powell, Powers, Ray, Reardon, Rehorn, Reinhardt, Ruff,
Schwartz, Sharp, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson,
Tanner, Tedder, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber,
Weiland, Wells, Welshimer, Wilk.

 Nays: Ballou.

 Present but not voting: Edmonds, Jenkins.

 Absent or not voting: J. Peterson.

 The bill passed, as amended.

   HR 6006, A resolution memorializing Congress to revise certain laws which prohibit a
disabled military veteran from receiving both full retirement pay and disability compensation
benefits, was considered on final action.

 On roll call, the vote was: Yeas 123; Nays 0; Present but not voting: 1; Absent or not
voting: 1.

 Yeas: Aday, Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Barnes, Beggs, Benlon,
Bethell, Boston, Burroughs, Campbell, Carmody, Compton, Cox, Crow, Dahl, Dean,
Dreher, Edmonds, Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower,
Franklin, Freeborn, Garner, Gatewood, Geringer, Gilbert, Gilmore, Glasscock, Grant,
Gregory, Haley, Hayzlett, Helgerson, Henderson, Henry, Hermes, Holmes, Horst, Howell,
Huff, Humerickhouse, Hutchins, Jenkins, Jennison, Johnson, Johnston, Kirk, Klein, Phil
Kline, Phill Kline, Kuether, Landwehr, Lane, Larkin, Light, Lightner, Lloyd, M. Long, P.
Long, Loyd, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKinney, Minor,
Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Brien, O'Connor, O'Neal, Osborne,
Palmer, Pauls, E. Peterson, Phelps, Pottorff, Powell, Powers, Ray, Reardon, Rehorn,
Reinhardt, Ruff, Schwartz, Sharp, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm,
Swenson, Tanner, Tedder, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle,
Weber, Weiland, Wells, Welshimer, Wilk.

 Nays: None.

 Present but not voting: Krehbiel.

 Absent or not voting: J. Peterson.

 The resolution was adopted.

   SCR 1605, A concurrent resolution urging Congress to remove or restrict the use of
trade sanctions as they apply to agricultural products and to work for the reduction or
elimination of trade barriers and sanctions imposed by other countries against agricultural
products and urging Congress to pass laws that prohibit discriminatory pricing, require
mandatory price reporting by packers, prohibit retaliation against a producer by a packer
and require country of origin labeling on foreign beef and pork raised and produced in other
countries, was considered on final action.

 On roll call, the vote was: Yeas 118; Nays 6; Present but not voting: 0; Absent or not
voting: 1.

 Yeas: Aday, Alldritt, Allen, Ballard, Ballou, Barnes, Beggs, Bethell, Boston, Burroughs,
Campbell, Carmody, Compton, Cox, Crow, Dahl, Dean, Dreher, Edmonds, Empson,
Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Freeborn, Garner, Gatewood,
Geringer, Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett, Helgerson,
Henderson, Henry, Hermes, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins,
Jenkins, Jennison, Johnson, Johnston, Kirk, Klein, Phill Kline, Krehbiel, Kuether, Landwehr,
Lane, Larkin, Light, Lightner, Lloyd, M. Long, P. Long, Loyd, Mason, Mayans, Mays,
McClure, McCreary, McKechnie, McKinney, Minor, Mollenkamp, Morrison, Myers,
Neufeld, Nichols, O'Brien, O'Connor, O'Neal, Osborne, Palmer, Pauls, E. Peterson, Phelps,
Pottorff, Powell, Powers, Ray, Reardon, Rehorn, Reinhardt, Ruff, Schwartz, Sharp,
Showalter, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Tedder, Thimesch,
Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer,
Wilk.

 Nays: Adkins, Aurand, Benlon, Franklin, Phil Kline, Shriver.

 Present but not voting: None.

 Absent or not voting: J. Peterson.

 The resolution was adopted, as amended.

   On motion of Rep. Glasscock, the House went into Committee of the Whole, with Rep.
Lane in the chair.

COMMITTEE OF THE WHOLE
 On motion of Rep. Lane, Committee of the Whole report, as follows, was adopted:

   Recommended that committee report to HB 2048 be adopted; also, on motion of Rep.
Findley to amend, Rep. Palmer requested a ruling on the amendment being germane to
the bill. The Rules Chair ruled the amendment not germane.

 Also, roll call was demanded on further motion of Rep. Findley to amend HB 2048 on
page 14, by striking all in line 19 and inserting the following:

      ``Sec.  2. K.S.A. 1998 Supp. 79-3603 is hereby amended to read as follows: 79-3603. For
the privilege of engaging in the business of selling tangible personal property at retail in this
state or rendering or furnishing any of the services taxable under this act, there is hereby
levied and there shall be collected and paid a tax at the rate of 4.9%, except as otherwise
more specifically provided, upon:

      (a) The gross receipts received from the sale of tangible personal property at retail
within this state;

      (b)  (1) the gross receipts from intrastate telephone or telegraph services and (2) the
gross receipts received from the sale of interstate telephone or telegraph services, which
(A) originate within this state and terminate outside the state and are billed to a customer's
telephone number or account in this state; or (B) originate outside this state and terminate
within this state and are billed to a customer's telephone number or account in this state
except that the sale of interstate telephone or telegraph service does not include: (A) Any
interstate incoming or outgoing wide area telephone service or wide area transmission type
service which entitles the subscriber to make or receive an unlimited number of
communications to or from persons having telephone service in a specified area which is
outside the state in which the station provided this service is located; (B) any interstate
private communications service to the persons contracting for the receipt of that service
that entitles the purchaser to exclusive or priority use of a communications channel or group
of channels between exchanges; (C) any value-added nonvoice service in which computer
processing applications are used to act on the form, content, code or protocol of the
information to be transmitted; (D) any telecommunication service to a provider of
telecommunication services which will be used to render telecommunications services,
including carrier access services; or (E) any service or transaction defined in this section
among entities classified as members of an affiliated group as provided by federal law (U.S.C.
Section 1504). For the purposes of this subsection the term gross receipts does not include
purchases of telephone, telegraph or telecommunications using a prepaid telephone calling
card or pre-paid authorization number. As used in this subsection, a pre-paid telephone
calling card or pre-paid authorization number means the right to exclusively make telephone
calls, paid for in advance, with the prepaid value measured in minutes or other time units,
that enables the origination of calls using an access number or authorization code or both,
whether manually or electronically dialed;

      (c) the gross receipts from the sale or furnishing of gas, water, electricity and heat,
which sale is not otherwise exempt from taxation under the provisions of this act, and
whether furnished by municipally or privately owned utilities;

      (d) the gross receipts from the sale of meals or drinks furnished at any private club,
drinking establishment, catered event, restaurant, eating house, dining car, hotel, drugstore
or other place where meals or drinks are regularly sold to the public;

      (e) the gross receipts from the sale of admissions to any place providing amusement,
entertainment or recreation services including admissions to state, county, district and local
fairs, but such tax shall not be levied and collected upon the gross receipts received from
sales of admissions to any cultural and historical event which occurs triennially;

      (f) the gross receipts from the operation of any coin-operated device dispensing or
providing tangible personal property, amusement or other services except laundry services,
whether automatic or manually operated;

      (g) the gross receipts from the service of renting of rooms by hotels, as defined by K.S.A.
36-501 and amendments thereto, or by accommodation brokers, as defined by K.S.A. 12-
1692, and amendments thereto;

      (h) the gross receipts from the service of renting or leasing of tangible personal property
except such tax shall not apply to the renting or leasing of machinery, equipment or other
personal property owned by a city and purchased from the proceeds of industrial revenue
bonds issued prior to July 1, 1973, in accordance with the provisions of K.S.A. 12-1740
through 12-1749, and amendments thereto, and any city or lessee renting or leasing such
machinery, equipment or other personal property purchased with the proceeds of such
bonds who shall have paid a tax under the provisions of this section upon sales made prior
to July 1, 1973, shall be entitled to a refund from the sales tax refund fund of all taxes paid
thereon;

      (i) the gross receipts from the rendering of dry cleaning, pressing, dyeing and laundry
services except laundry services rendered through a coin-operated device whether automatic
or manually operated;

      (j) the gross receipts from the rendering of the services of washing and washing and
waxing of vehicles;

      (k) the gross receipts from cable, community antennae and other subscriber radio and
television services;

      (l) the gross receipts received from the sales of tangible personal property to all
contractors, subcontractors or repairmen of materials and supplies for use by them in
erecting structures for others, or building on, or otherwise improving, altering, or repairing
real or personal property of others;

      (m) the gross receipts received from fees and charges by public and private clubs,
drinking establishments, organizations and businesses for participation in sports, games and
other recreational activities, but such tax shall not be levied and collected upon the gross
receipts received from: (1) Fees and charges by any political subdivision, by any organization
exempt from property taxation pursuant to paragraph Ninth of K.S.A. 79-201, and
amendments thereto, or by any youth recreation organization exclusively providing services
to persons 18 years of age or younger which is exempt from federal income taxation pursuant
to section 501(c)(3) of the federal internal revenue code of 1986, for participation in sports,
games and other recreational activities; and (2) entry fees and charges for participation in a
special event or tournament sanctioned by a national sporting association to which spectators
are charged an admission which is taxable pursuant to subsection (e);

      (n) the gross receipts received from dues charged by public and private clubs, drinking
establishments, organizations and businesses, payment of which entitles a member to the
use of facilities for recreation or entertainment, but such tax shall not be levied and collected
upon the gross receipts received from: (1) Dues charged by any organization exempt from
property taxation pursuant to paragraphs Eighth and Ninth of K.S.A. 79-201, and
amendments thereto; and (2) sales of memberships in a nonprofit organization which is
exempt from federal income taxation pursuant to section 501 (c)(3) of the federal internal
revenue code of 1986, and whose purpose is to support the operation of a nonprofit zoo;

      (o) the gross receipts received from the isolated or occasional sale of motor vehicles or
trailers but not including: (1) The transfer of motor vehicles or trailers by a person to a
corporation solely in exchange for stock securities in such corporation; or (2) the transfer
of motor vehicles or trailers by one corporation to another when all of the assets of such
corporation are transferred to such other corporation; or (3) the sale of motor vehicles or
trailers which are subject to taxation pursuant to the provisions of K.S.A. 79-5101 et seq.,
and amendments thereto, by an immediate family member to another immediate family
member. For the purposes of clause (3), immediate family member means lineal ascendants
or descendants, and their spouses. In determining the base for computing the tax on such
isolated or occasional sale, the fair market value of any motor vehicle or trailer traded in by
the purchaser to the seller may be deducted from the selling price;

      (p) the gross receipts received for the service of installing or applying tangible personal
property which when installed or applied is not being held for sale in the regular course of
business, and whether or not such tangible personal property when installed or applied
remains tangible personal property or becomes a part of real estate, except that no tax shall
be imposed upon the service of installing or applying tangible personal property in
connection with the original construction of a building or facility, the original construction,
reconstruction, restoration, remodeling, renovation, repair or replacement of a residence or
the construction, reconstruction, restoration, replacement or repair of a bridge or highway.

      For the purposes of this subsection:

      (1) ``Original construction'' shall mean the first or initial construction of a new building
or facility. The term ``original construction'' shall include the addition of an entire room or
floor to any existing building or facility, the completion of any unfinished portion of any
existing building or facility and the restoration, reconstruction or replacement of a building
or facility damaged or destroyed by fire, flood, tornado, lightning, explosion or earthquake,
but such term, except with regard to a residence, shall not include replacement, remodeling,
restoration, renovation or reconstruction under any other circumstances;

      (2) ``building'' shall mean only those enclosures within which individuals customarily
are employed, or which are customarily used to house machinery, equipment or other
property, and including the land improvements immediately surrounding such building;

      (3) ``facility'' shall mean a mill, plant, refinery, oil or gas well, water well, feedlot or any
conveyance, transmission or distribution line of any cooperative, nonprofit, membership
corporation organized under or subject to the provisions of K.S.A. 17-4601 et seq., and
amendments thereto, or of any municipal or quasi-municipal corporation, including the land
improvements immediately surrounding such facility; and

      (4) ``residence'' shall mean only those enclosures within which individuals customarily
live;

      (q) the gross receipts received for the service of repairing, servicing, altering or
maintaining tangible personal property, except computer software described in subsection
(s), which when such services are rendered is not being held for sale in the regular course
of business, and whether or not any tangible personal property is transferred in connection
therewith. The tax imposed by this subsection shall be applicable to the services of repairing,
servicing, altering or maintaining an item of tangible personal property which has been and
is fastened to, connected with or built into real property;

      (r) the gross receipts from fees or charges made under service or maintenance
agreement contracts for services, charges for the providing of which are taxable under the
provisions of subsection (p) or (q);

      (s) the gross receipts received from the sale of computer software, and the sale of the
services of modifying, altering, updating or maintaining computer software. As used in this
subsection, ``computer software'' means information and directions loaded into a computer
which dictate different functions to be performed by the computer. Computer software
includes any canned or prewritten program which is held or existing for general or repeated
sale, even if the program was originally developed for a single end user as custom computer
software. The sale of computer software or services does not include: (1) The initial sale of
any custom computer program which is originally developed for the exclusive use of a single
end user; or (2) those services rendered in the modification of computer software when the
modification is developed exclusively for a single end user only to the extent of the
modification and only to the extent that the actual amount charged for the modification is
separately stated on invoices, statements and other billing documents provided to the end
user. The services of modification, alteration, updating and maintenance of computer
software shall only include the modification, alteration, updating and maintenance of
computer software taxable under this subsection whether or not the services are actually
provided; and

      (t) the gross receipts received for telephone answering services, including mobile phone
services, beeper services and other similar services; and

      (u) the gross receipts received from the sale of prepaid telephone calling cards or pre-
paid authorization numbers and the recharge of such cards or numbers. A pre-paid
telephone calling card or pre-paid authorization number means the right to exclusively make
telephone calls, paid for in advance, with the prepaid value measured in minutes or other
time units, that enables the origination of calls using an access number or authorization
code or both, whether manually or electronically dialed. If the dale or recharge of such card
or number does not take place at the vendor's place of business, it shall be conclusively
determined to take place at the customer's shipping address; if there is no item shipped
then it shall be the customer's billing address.; and
      (v)  (1) the gross receipts received from sales of food for human consumption at the rate
of: (A) 3.3% on July 1, 1999, and before June 1, 2001; and (B) 2.2% on June 1, 2001, and
before June 1, 2002; (2) on and after June 1, 2002, all sales of food for human consumption
are hereby exempt; and (3) as used in this subsection, ``food for human consumption'' means
only that food which is eligible for purchase with food stamps issued by the United States
department of agriculture pursuant to regulations in effect on January 1, 1998, regardless
of whether the retailer from which the food is purchased is participating in the food stamp
program. Such phrase shall not include meals prepared for immediate consumption on or
off premises of the retailer.

      Sec.  3. K.S.A. 1998 Supp. 79-3703 is hereby amended to read as follows: 79-3703.
There is hereby levied and there shall be collected from every person in this state a tax or
excise for the privilege of using, storing, or consuming within this state any article of tangible
personal property. Such tax shall be levied and collected in an amount equal to the
consideration paid by the taxpayer multiplied by the rate of 4.9%, except that the rate
imposed upon sales of food for human consumption shall be identical to the rate of sales tax
imposed thereon. Within a redevelopment district established pursuant to K.S.A. 1998 Supp.
74-8921, and amendments thereto, there is hereby levied and there shall be collected and
paid an additional tax of 1% until the earlier of: (1) The date the bonds issued to finance or
refinance the redevelopment project undertaken in the district have been paid in full; or
(2) twenty years after the establishment of the redevelopment district. All property
purchased or leased within or without this state and subsequently used, stored or consumed
in this state shall be subject to the compensating tax if the same property or transaction
would have been subject to the Kansas retailers' sales tax had the transaction been wholly
within this state.

      Sec.  4. K.S.A. 12-189a is hereby amended to read as follows: 12-189a. The following
sales shall be subject to the taxes levied and collected by all cities and counties under the
provisions of K.S.A. 12-187 et seq. and amendments thereto:

      (a) All sales of natural gas, electricity, heat and water delivered through mains, lines or
pipes to residential premises for noncommercial use by the occupant of such premises and
all sales of natural gas, electricity, heat and water delivered through mains, lines or pipes
for agricultural use;

      (b) 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;

      (c) All sales of intrastate telephone and telegraph services for noncommercial use.; and
      (d) all sales of food for human consumption, as defined by subsection (v) of K.S.A. 79-
3603, and amendments thereto.

      Sec.  5. K.S.A. 79-2959 is hereby amended to read as follows: 79-2959. (a) There is
hereby created the local ad valorem tax reduction fund. All moneys transferred or credited
to such fund under the provisions of this act or any other law shall be apportioned and
distributed in the manner provided herein.

      (b) On January 15 and on July 15 of each year, the director of accounts and reports
shall make transfers in equal amounts which in the aggregate equal 4.5% of the total retail
sales and compensating taxes credited to the state general fund pursuant to articles 36 and
37 of chapter 79 of Kansas Statutes Annotated and acts amendatory thereof and
supplemental thereto during the preceding calendar year from the state general fund to the
local ad valorem tax reduction fund, except that: (1) The transfers on January 15 and July
15 of each year shall be in equal amounts which in the aggregate equal 3.630% of such taxes
credited to the state general fund during the preceding calendar year; and (2) the amount
of the transfer on each such date during state fiscal year 1998 shall be equal to 101.75% of
the amount transferred on the same date during state fiscal year 1997 2000, shall be in equal
amounts which in the aggregate equal 3.671% of such taxes credited to the state general
fund during the preceding calendar year; (3) the amount of the transfer on each such date
during fiscal year 2001, shall be in equal amounts which in the aggregate equal 3.752% of
such taxes credited to the state general fund during the preceding calendar year; (4) the
amount of the transfer on each such date during fiscal year 2002, shall be in equal amounts
which in the aggregate equal 3.823% of such taxes credited to the state general fund during
the preceding calendar year; (5) the amount of the transfer on each such date during fiscal
year 2003, shall be in equal amounts which in the aggregate equal 3.948% of such taxes
credited to the state general fund during the preceding calendar year; (6) the amount of the
transfer on each such date during fiscal year 2004, shall be in equal amounts which in the
aggregate equal 4.11% of such taxes credited to the state general fund during the preceding
calendar year; and (7) the amount of the transfer on each such date during fiscal year 2005,
and all such years thereafter, shall be in equal amounts which in the aggregate equal 4.178%
of such taxes credited to the state general fund during the preceding calendar year. All such
transfers are subject to reduction under K.S.A. 75-6704 and amendments thereto. All
transfers made in accordance with the provisions of this section shall be considered to be
demand transfers from the state general fund.

      (c) The state treasurer shall apportion and pay the amounts transferred under subsection
(b) to the several county treasurers on January 15 and on July 15 in each year as follows:
(1) Sixty-five percent of the amount to be distributed shall be apportioned on the basis of
the population figures of the counties certified to the secretary of state pursuant to K.S.A.
11-201 and amendments thereto on July 1 of the preceding year; and (2) thirty-five percent
of such amount shall be apportioned on the basis of the equalized assessed tangible
valuations on the tax rolls of the counties on November 1 of the preceding year as certified
by the director of property valuation.

      Sec.  6. K.S.A. 1998 Supp. 79-2964 is hereby amended to read as follows: 79-2964.
There is hereby created the county and city revenue sharing fund. All moneys transferred
or credited to such fund under the provisions of this act or any other law shall be allocated
and distributed in the manner provided herein. The director of accounts and reports in each
year on July 15 and December 10, shall make transfers in equal amounts which in the
aggregate equal 3.5% of the total retail sales and compensating taxes credited to the state
general fund pursuant to articles 36 and 37 of chapter 79 of the Kansas Statutes Annotated
and acts amendatory thereof and supplemental thereto during the preceding calendar year
from the state general fund to the county and city revenue sharing fund, except that: (a)
The transfers on July 15 and December 10 of each year shall be in equal amounts which in
the aggregate equal 2.823% of such taxes credited to the state general fund during the
preceding calendar year; and (b) the amount of the transfer on each such date during state
fiscal year 1999 shall be equal to 102.4% of the amount transferred on the same date during
state fiscal year 1998 2001, shall be in equal amounts which in the aggregate equal 2.886%
of such taxes credited to the state general fund during the preceding calendar year; (c) the
amount of the transfer on each such date during fiscal year 2002, shall be in equal amounts
which in the aggregate equal 2.949% of such taxes credited to the state general fund during
the preceding calendar year; (d) the amount of the transfer on each such date during fiscal
year 2003, shall be in equal amounts which in the aggregate equal 2.996% of such taxes
credited to the state general fund during the preceding calendar year; (e) the amount of the
transfer on each such date during fiscal year 2004, shall be in equal amounts which in the
aggregate equal 3.144% of such taxes credited to the state general fund during the preceding
calendar year; and (f) the amount of the transfer on each such date during fiscal year 2005,
and all such years thereafter, shall be in equal amounts which in the aggregate equal 3.248%
of such taxes credited to the state general fund during the preceding calendar year. All such
transfers are subject to reduction under K.S.A. 75-6704 and amendments thereto. All
transfers made in accordance with the provisions of this section shall be considered to be
demand transfers from the state general fund.

      Sec.  7. K.S.A. 1998 Supp. 79-34,147 is hereby amended to read as follows: 79-34,147.
(a) On each January 1, April 1, July 1 and October 1, the secretary of revenue shall certify
to the director of accounts and reports the amount equal to 7.628% of the total revenues
received by the secretary from the taxes imposed under the Kansas retailers' sales tax act
and deposited in the state treasury and credited to the state general fund during the
preceding three calendar months, except that: (1) The amount so certified during fiscal year
2000, shall be the amount equal to 8.2% of the total revenues received from such tax and so
deposited and credited during such months; (2) the amount so certified during fiscal year
2001, shall be the amount equal to 8.3% of the total revenues received from such tax and so
deposited and credited during such months; (3) the amount so certified during fiscal year
2002, shall be the amount equal to 8.726% of the total revenues received from such tax so
deposited and credited during such months; (4) the amount so certified during fiscal year
2003, shall be the amount equal to 9.745% of the total revenues received from such tax so
deposited and credited during such months; and (5) the amount so certified during fiscal
year 2004, and all such years thereafter, shall be the amount equal to 9.932% of the total
revenues received from such tax so deposited and credited during such months.

      (b) Upon receipt of each certification under subsection (a), the director of accounts and
reports shall transfer from the state general fund to the state highway fund an amount equal
to the amount so certified, on each January 1, April 1, July 1 and October 1, except that the
amount of the transfer on each such date during state fiscal year 1999 shall not exceed the
amount equal to 102.4% of the amount transferred on the same date during state fiscal year
1998. All transfers made pursuant to this section are subject to reduction under K.S.A. 75-
6704, and amendments thereto.

      (c) All transfers made in accordance with the provisions of this section shall be
considered to be demand transfers from the state general fund.

      Sec.  8. K.S.A. 12-189a, 79-2959 and K.S.A. 1998 Supp. 79-2964, 79-34,147, 79-3603
and 79-3703 are hereby repealed.'';

      And by renumbering the remaining section accordingly;

      In the title, in line 20, by striking all after ``ACT''; by striking all in lines 21 through 23
and inserting ``relating to taxation; amending K.S.A. 12-189a, 79-2959 and K.S.A. 1998 Supp.
79-2964, 79-34,147, 79-3603 and 79-3703 and repealing the existing sections.'';

 On roll call, the vote was: Yeas 87; Nays 36; Present but not voting: 0; Absent or not
voting: 2.

 Yeas: Aday, Alldritt, Allen, Ballard, Barnes, Benlon, Bethell, Burroughs, Campbell,
Carmody, Crow, Dahl, Dean, Edmonds, Faber, Farmer, Feuerborn, Findley, Flaharty,
Flora, Flower, Franklin, Garner, Gatewood, Gilbert, Gilmore, Grant, Gregory, Haley,
Henderson, Henry, Hermes, Horst, Howell, Huff, Hutchins, Jenkins, Kirk, Klein, Phill
Kline, Kuether, Landwehr, Lightner, M. Long, P. Long, Mayans, Mays, McClure,
McCreary, McKechnie, McKinney, Mollenkamp, Myers, Nichols, O'Brien, O'Connor,
Osborne, Palmer, Pauls, E. Peterson, Phelps, Pottorff, Powell, Powers, Reardon, Rehorn,
Ruff, Schwartz, Sharp, Showalter, Shriver, Sloan, Spangler, Stone, Storm, Swenson, Tedder,
Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weiland, Wells,
Welshimer.

 Nays: Adkins, Aurand, Ballou, Beggs, Boston, Compton, Cox, Dreher, Empson, Freeborn,
Geringer, Glasscock, Hayzlett, Helgerson, Holmes, Humerickhouse, Jennison, Johnson, Phil
Kline, Krehbiel, Lane, Larkin, Light, Lloyd, Loyd, Mason, Minor, Morrison, Neufeld,
O'Neal, Ray, Reinhardt, Shultz, Tanner, Weber, Wilk.

 Present but not voting: None.

 Absent or not voting: Johnston, J. Peterson.

 The motion of Rep. Findley prevailed.

 Also, on motion of Rep. Helgerson to amend HB 2048, Rep. Palmer requested a ruling
on the amendment being germane to the bill. The Rules Chair ruled the amendment
germane. The question then reverted back to the motion of Rep. Helgerson, which did not
prevail.

 Also, on motion of Rep. Benlon to amend HB 2048, the motion did not prevail. Also, on
motion of Rep. Swenson to amend, the motion did not prevail, and the bill be passed as
amended.

REPORTS OF STANDING COMMITTEES
      The Committee on Federal and State Affairs recommends HB 2540 be amended by
substituting a new bill to be designated as ``Substitute for HOUSE BILL No. 2540,'' as
follows:

    ``Substitute for HOUSE BILL No. 2540
  By Committee on Federal and State Affairs


``AN  ACT concerning firearms and ammunition; relating to the design, marketing,
      manufacture, distribution, dealing and sale thereof; relating to the limitation on certain
      civil actions relating thereto.'';

                and the substitute bill be passed.

     (Sub. HB 2540 was thereupon introduced and read by title.)

 The Committee on Judiciary recommends SB 89 be passed.

      The Committee on Judiciary recommends HB 2126 be amended on page 19, in line 8,
by striking all following ``secretary''; in line 9, by striking ``ministrative hearings''; in line 40,
following the stricken material by inserting ``secretary of agriculture through the'';

      On page 20, in line 6 preceding ``dairy'' by inserting ``secretary of agriculture through
the''; in line 10, following the stricken material by inserting ``secretary of agriculture through
the''; in line 13, following the stricken material by inserting ``secretary of agriculture through
the''; in line 16, following the stricken material by inserting ``secretary of agriculture through
the''; in line 20, following the stricken material by inserting ``secretary of agriculture through
the''; in line 26, preceding ``dairy'' by inserting ``secretary of agriculture through the''; in line
33, following the stricken material by inserting ``secretary of agriculture through the''; in
line 34, following the stricken material by inserting ``secretary of agriculture through the'';

      On page 52, by striking all in lines 20 and 21; in line 22, by striking ``this act.''; and the
bill be passed as amended.

      The Committee on Judiciary recommends SB 88 be amended on page 1 in the title, in
line 10 after ``and'' by striking ``chattels;'' and inserting ``chattel paper;'' and the bill be passed
as amended.

 Upon unanimous consent, the House referred back to the regular order of business,
Introduction of Bills and Concurrent Resolutions.

INTRODUCTION OF BILLS AND CONCURRENT RESOLUTIONS
 The following bills and concurrent resolution were thereupon introduced and read by
title:

   HB 2555, An act concerning crimes and punishment; relating to unlawfully disarming a
law enforcement officer, by Committee on Federal and State Affairs.

   HB 2556, An act establishing the medical resources and collection fund; concerning adult
care home fines; amending K.S.A. 39-965 and repealing the existing section, by Committee
on Appropriations.

      HOUSE CONCURRENT RESOLUTION No. 5035--

    By Committee on Federal and State Affairs


Be it resolved by the Legislature of the State of Kansas, two-thirds of the members elected
      (or appointed) and qualified to the House of Representatives and two-thirds of the
      members elected (or appointed) and qualified to the Senate concurring therein:

     

      Section  1. The following proposition to amend the constitution of the state of Kansas
shall be submitted to the qualified electors of the state for their approval or rejection: Section
1 of article 11 of the constitution of the state of Kansas is hereby amended to read as follows:

      ``§  1. System of taxation; classification; exemption. (a) The provisions of this
            subsection shall govern the assessment and taxation of property on and after January
            1, 1993, and each year thereafter. Except as otherwise hereinafter specifically
            provided by this section, the legislature shall provide for a uniform and equal basis
            of valuation and rate of taxation of all property subject to taxation. The legislature
            may provide for the classification and the taxation uniformly as to class of recreational
            vehicles, as defined by the legislature, or may exempt such class from property
            taxation and impose taxes upon another basis in lieu thereof. The provisions of this
            subsection shall not be applicable to the taxation of motor vehicles, except as
            otherwise hereinafter specifically provided, mineral products, money, mortgages,
            notes and other evidence of debt and grain. Property shall be classified into the
            following classes for the purpose of assessment and assessed at the percentage of
            value prescribed therefor:

            Class 1 shall consist of real property. Real property shall be further classified into seven
subclasses. Such property shall be defined by law for the purpose of subclassification and
assessed uniformly as to subclass at the following percentages of value:

(1)Real property used for residential purposes including multi-family residential real property and real property necessary toaccommodate a residential community of mobile ormanufactured homes including the real property upon whichsuch homes are located 11|1/2%
(2)Land devoted to agricultural use which shall be valued uponthe basis of its agricultural income or agricultural productivitypursuant to section 12 of article 11 of the constitution 30%
(3)Vacant lots 12%
(4)Real property which is owned and operated by a not-for-profitorganization not subject to federal income taxation pursuantto section 501 of the federal internal revenue code, and whichis included in this subclass by law 12%
(5)Public utility real property, except railroad real property whichshall be assessed at the average rate that all other commercialand industrial property is assessed 33%
(6)Real property used for commercial and industrial purposes andbuildings and other improvements located upon land devotedto agricultural use 25%
(7)All other urban and rural real property not otherwisespecifically subclassified 30%
        Class 2 shall consist of tangible personal property. Such tangible personal property shall
be further classified into six subclasses, shall be defined by law for the purpose of
subclassification and assessed uniformly as to subclass at the following percentages of value:

(1)Mobile homes used for residential purposes 11|1/2%
(2)Mineral leasehold interests except oil leasehold interests theaverage daily production from which is five barrels or less, andnatural gas leasehold interests the average daily productionfrom which is 100 mcf or less, which shall be assessed at25% 30%
(3)Public utility tangible personal property including inventoriesthereof, except railroad personal property includinginventories thereof, which shall be assessed at the average rateall other commercial and industrial property is assessed 33%
(4)All categories of motor vehicles not defined and specificallyvalued and taxed pursuant to law enacted prior to January 1,1985 30%
(5)Commercial and industrial machinery and equipment which,if its economic life is seven years or more, shall be valued atits retail cost when new less seven-year straight-linedepreciation, or which, if its economic life is less than sevenyears, shall be valued at its retail cost when new less straight-line depreciation over its economic life, except that, the valueso obtained for such property, notwithstanding its economiclife and as long as such property is being used, shall not be lessthan 20% of the retail cost when new of such property 25%
(6)All other tangible personal property not otherwise specificallyclassified 30%
        (b)  (1) Except as otherwise provided by paragraph (2) of this subsection, the appraised
valuation of all real property, other than land devoted to agricultural use, shall not increase
from one taxable year to the next such year by a percentage exceeding the percentage by
which the average consumer price index for all urban consumers published by the federal
department of labor as of the close of the 12-month period ending on August 31 of the first
calendar year preceding the appropriate taxable year exceeds such index as of such period
ending on August 31 of the second calendar year preceding the appropriate taxable year.
      (2) The appraised valuation for new or newly improved real property shall, in its initial
year of valuation, be based upon the comparison with values of other real property of known
or recognized value which is subject to the provisions of paragraph (1).

      (b) (c) All property used exclusively for state, county, municipal, literary, educational,
scientific, religious, benevolent and charitable purposes, farm machinery and equipment,
merchants' and manufacturers' inventories, other than public utility inventories included in
subclass (3) of class 2, livestock, and all household goods and personal effects not used for
the production of income, shall be exempted from property taxation.''

      Sec.  2. The following statement shall be printed on the ballot with the amendment as
a whole:

  ``Explanatory statement. This amendment would provide limitations upon the increase of
      the appraised valuation of real property subject to taxation.

      ``A vote for this proposition would limit to the percentage increase of the consumer price
      index real estate appraised valuation increases from one tax period to another.

      ``A vote against this proposition would maintain the current system of property taxation.''

              Sec.  3. This resolution, if approved by two-thirds of the members elected (or appointed)
and qualified to the House of Representatives, and two-thirds of the members elected (or
appointed) and qualified to the Senate shall be entered on the journals, together with the
yeas and nays. The secretary of state shall cause this resolution to be published as provided
by law and shall cause the proposed amendment to be submitted to the electors of the state
at the general election to be held on November 7, 2000.

REPORT ON ENGROSSED BILLS
 HB 2011, 2446 reported correctly engrossed March 8, 1999.

   On motion of Rep. Glasscock, the House adjourned until 11:00 a.m., Wednesday, March
10, 1999.

CHARLENE SWANSON, Journal Clerk.

JANET E. JONES, Chief Clerk.