April 1, 1999

Journal of the Senate

FIFTY-SEVENTH DAY
______
Senate Chamber, Topeka, Kansas
Thursday, April 1, 1999--9:00 a.m.
 The Senate was called to order by President Dick Bond.

 The roll was called with forty senators present.

 President Bond introduced as guest chaplain, Maurice G. Chandler, President, Barclay
College, Haviland, Kansas, who delivered the invocation:

        Father,

        We begin this day rejoicing in You. We thank You for Your goodness, mercy and
      grace toward us as individuals and as citizens of the State of Kansas.

        We give thanks for our government and today hold up in prayer before you these
      our leaders in the State Senate. Giving thanks for their dedication and willingness
      to serve the people of this Great State.

        May, on this day and in the days ahead, Your Spirit permeate each member, giving
      them wisdom, courage and strength for their tasks ahead. Give them a unified vision
      of the future greatness of Kansas as they follow You.

        Let us, as leaders, ever be mindful of our obligation to our young people. An
      education is not only gained from the classroom, but by the examples we set, the
      freedoms we protect and by the way we acknowledge You as our Lord. Let it be said
      of us, as we can say of the leaders of yesterday, thank you for being faithful to those
      whom you serve.

        Father, we praise You and thank You for the privilege of living in this land.

        In Jesus name we pray.

        AMEN

ORIGINAL MOTION
 Having voted on the prevailing side in Final Action on Wednesday, March 31, 1999,
Senator Lawrence moved the Senate reconsider its adverse action on SB 326 and return
the bill to General Orders.

 The motion carried and the bill was returned to the calendar under the heading of General
Orders.

REFERENCE OF BILLS AND CONCURRENT RESOLUTIONS
 The following bill was referred to Committee as indicated:

   Ways and Means: HB 2521.

REPORT ON ENROLLED BILLS
 SB 292 reported correctly enrolled, properly signed and presented to the Governor on
April 1, 1999.

 SCR 1617 reported correctly enrolled, properly signed and presented to the Secretary
of State on April 1, 1999.

 SR 1848 reported correctly enrolled, properly signed and presented to the Secretary of
the Senate on April 1, 1999.

COMMITTEE OF THE WHOLE
 On motion of Senator Emert the Senate resolved itself into Committee of the Whole for
consideration of bills on the calendar under the heading of General Orders with Senator
Morris in the chair.

 On motion of Senator Morris the following report for the morning session was adopted.

 Recommended HB 2380 be passed.

 SB 323; HB 2362 be amended by adoption of the committee amendments, and the bills
be passed as amended.

 HB 2404 be amended by adoption of the committee amendments, and further amended
by motion of Senator Lee on page 2, by striking all of lines 6 through 29; by renumbering
the remaining sections accordingly;

      In the title, in line 13, by striking all after the semicolon; by striking all of line 14, and
the bill be passed as further amended.

  HB 2565 be amended by adoption of the committee amendments, and the bill be passed
as amended.

 The following amendments offered to HB 2565 were rejected:

 Senator Petty moved to amend the bill on page 1, in line 21, by striking all after ``may'';
by striking all in lines 22 and 23; in line 24, by striking all before ``The'' and inserting ``submit
the question of imposing a countywide retailers' sales tax to the electors at an election called
and held thereon. It shall give notice of its intention to submit such proposition for approval
by the electors in the manner required by K.S.A. 10-120, and amendments thereto. The
notices shall state the time of the election and the rate and effective date of the proposed
tax. If a majority of the electors voting thereon at such election shall approve the levying of
such tax, the board of regents of Washburn University of Topeka shall provide by resolution
for the levy of the tax except as otherwise hereinafter provided. In the event such proposition
receives approval of both a majority of the voters of the city of Topeka and of the voters of
Shawnee county outside the corporate limits of the city of Topeka, such tax shall be imposed
countywide. In the event such proposition receives approval of a majority of the voters of
the city of Topeka but not of the voters of Shawnee county outside the corporate limits of
the city of Topeka, such tax shall only be imposed within the corporate limits of the city of
Topeka. Whenever such proposition has been submitted to and been rejected by the voters
voting at an election held thereon, such proposition shall not again be submitted to the
voters of such county.''; in line 36, after ``county'' by inserting ``or within the corporate limits
of the city of Topeka, as the case requires,'';

      On page 2, by striking all in lines 8 through 27.

 Upon the showing of five hands a roll call vote was requested       On roll call, the vote
was: Yeas 17, nays 22, present and passing 0; absent or not voting 1.

      Yeas: Barone, Biggs, Clark, Downey, Feleciano, Gilstrap, Gooch, Goodwin, Hensley,
Huelskamp, Lee, Petty, Pugh, Salmans, Steineger, Stephens, Tyson.

      Nays: Becker, Bleeker, Bond, Brownlee, Corbin, Donovan, Emert, Hardenburger,
Harrington, Jordan, Kerr, Langworthy, Lawrence, Morris, Oleen, Praeger, Ranson,
Salisbury, Steffes, Umbarger, Vidricksen, Vratil.

      Absent or not voting: Jones.

      The motion failed and the amendment was rejected.

 Senator Petty moved to amend the bill on page 2, in line 31, before ``The'' by inserting
``(a)''; in line 34, by striking ``(a)'' and inserting ``(1)''; in line 39, by striking ``(b)'' and inserting
``(2)''; in line 42, by striking ``(c)'' and inserting ``(3)''; after line 43, by inserting:

      ``(b) The following sales shall not be subject to the taxes levied by Washburn university
of Topeka under the provisions of section 1, and amendments thereto: All sales of food for
human consumption. As used in this paragraph, ''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.''

 The motion failed and the amendment was rejected.

   On motion of Senator Emert, the Senate recessed until 2:00 p.m.

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

CHANGE OF REFERENCE
 The President withdrew SB 343 from the Committee on Judiciary, and referred the bill
to the Committee on Federal and State Affairs.

MESSAGE FROM THE GOVERNOR
 SB 241 approved on April 1, 1999.

MESSAGE FROM THE HOUSE
 Announcing passage of HB 2513; Substitute HB 2527.

 Also, passage of SB 226, as amended.

 Also, adoption of SCR 1611.

 The House concurs in Senate amendments to HB 2060.

 The House concurs in Senate amendments to HB 2215.

 The House concurs in Senate amendments to HB 2035 and requests the Senate to return
the bill.

 The House concurs in Senate amendments to HB 2136 and requests the Senate to return
the bill.

 The House nonconcurs in Senate amendments to HB 2213, requests a conference and
has appointed Representatives Boston, Henry and Gilmore as conferees on the part of the
House.

 The House nonconcurs in Senate amendments to HB 2259, requests a conference and
has appointed Representatives Hayzlett, Ballou and Larkin as conferees on the part of the
House.

 The House nonconcurs in Senate amendments to HB 2352, requests a conference and
has appointed Representatives O'Neal, Carmody and Pauls as conferees on the part of the
House.

 Announcing, the House adopts the conference committee report on SB 107.

INTRODUCTION OF HOUSE BILLS AND CONCURRENT RESOLUTIONS
 HB 2513; Substitute HB 2527 were thereupon introduced and read by title.

CONSIDERATION OF MOTIONS TO CONCUR OR NONCONCUR
 On motion of Senator Langworthy the Senate nonconcurred in the House amendments
to SB 226 and requested a conference committee be appointed.

 The President appointed Senators Langworthy, Bond and Lee as a conference committee
on the part of the Senate.

ORIGINAL MOTION
 On motion of Senator Praeger, the Senate acceded to the request of the House for a
conference on HB 2213.

 The President appointed Senators Praeger, Salmans and Steineger as conferees on the
part of the Senate.

   On motion of Senator Emert, the Senate acceded to the request of the House for a
conference on HB 2259.

 The President appointed Senators Emert, Vratil and Goodwin as conferees on the part
of the Senate.

   On motion of Senator Emert, the Senate acceded to the request of the House for a
conference on HB 2352.

 The President appointed Senators Emert, Vratil and Goodwin as conferees on the part
of the Senate.

CONFERENCE COMMITTEE REPORT
      Mr. President and Mr. Speaker: Your committee on conference on House
amendments to SB 107, submits the following report:

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

      On page 6, in line 23, by striking ``certificate'' and inserting in lieu thereof ``license'';

      On page 11, by striking all in lines 22 through 31;

      And by renumbering sections accordingly;

      On page 1, in the title, in line 12, after ``ACT'' by inserting ``concerning the secretary of
health and environment;''; in line 13, by striking ``concerning'' and inserting in lieu thereof
``rescinding the expiration date for''; also in line 13, by striking ``sunset provision;'';

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

Cindy Empson

Henry Helgerson

Sandy Praeger

Larry D. Salmans

Chris Steineger

 Senator Praeger moved the Senate adopt the Conference Committee Report on SB 107.

      On roll call, the vote was: Yeas 39, nays 1, 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, Huelskamp,
Jones, Jordan, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Praeger, Pugh,
Ranson, Salisbury, Salmans, Steffes, Steineger, Stephens, Tyson, Umbarger, Vidricksen,
Vratil.

      Nays: Bleeker.

      The Conference Committee report was adopted.

REPORTS OF STANDING COMMITTEES
 Committee on Public Health and Welfare recommends HB 2538, as amended by
House Committee of the Whole, be amended on page 1, in line 19, by striking ``controlled
substance,''; in line 23, by striking ``controlled substance,''; in line 40, by striking ``medicine''
and inserting ``machine'';

 On page 2, in line 3, by striking ``controlled substance,''; by striking all in lines 8 through
38; and the bill be passed as amended.

 Committee on Ways and Means recommends HB 2548, as amended by House
Committee, be amended on page 2, in line 21, by striking all after ``institutions:''; in line 22,
by striking all before ``Osawatomie'';

      On page 4, after line 24, by inserting the following:

        ``New Sec.  4. (a) As used in this section, ''Topeka state hospital property`` means all
state-owned land and improvements in the city of Topeka, Kansas, which is in the area
bounded by west Sixth street on the south, MacVicar avenue on the east, Interstate 70 on
the north, and Oakley avenue on the west, including the adjacent state-owned land west of
Oakley avenue, excluding the state printing plant land designated by the secretary of
administration.

      (b) The secretary of administration shall have custody and control of the Topeka state
hospital property and may operate and maintain the property. The secretary of
administration may make expenditures for the following:

      (1) Goods and services relating to the use, sale, lease or other disposition of the Topeka
state hospital property;

      (2) marketing the use, sale, lease or other disposition of the Topeka state hospital
property; and

      (3) operating and maintaining the Topeka state hospital property, including security,
repair and capital improvements.

      (c) The secretary of administration may:

      (1) Enter into agreements to lease all, or any portion, of the Topeka state hospital
property for a period not to exceed five years;

      (2) enter into agreements to lease all, or any portion, of the Topeka state hospital
property for a period longer than five years after review and consultation with the joint
committee on state building construction;

      (3) enter into agreements and fix or alter charges for the use of the Topeka state hospital
property by state agencies and others in any amounts that the secretary of administration
determines to be beneficial or necessary; and

      (4) enter into agreements to sell all or any portion of the Topeka state hospital property,
subject to approval of the state finance council. The approval of the sale of all, or any portion,
of the Topeka state hospital property is hereby characterized as a matter of legislative
delegation and subject to the guidelines prescribed in subsection (c) of K.S.A. 75-3711c,
and amendments thereto. Approval by the state finance council may be given when the
legislature is in session.

      (d) If that portion of the Topeka state hospital campus which includes the division of
services for the blind is sold or otherwise becomes unavailable for its current use, ample
time shall be allowed for the division of services for the blind to acquire replacement facilities
of equal or better usefulness for services to the blind. If the Kansas industries for the blind
must be closed as a part of the sale of Topeka state hospital property, the Kansas industries
for the blind shall not be closed until suitable alternatives, including similar wages and
benefits, for persons employed by Kansas industries for the blind have been arranged.

      (e) The Topeka state hospital property and any portion thereof shall be exempt from
ad valorem taxation as long as such property is owned by the state of Kansas and such
property is:

      (1) Used by the state of Kansas or any of its agencies;

      (2) vacant;

      (3) leased by an entity exempt from the payment of ad valorem taxation; or

      (4) used for a purpose that is exempt from the payment of ad valorem taxation.

      (f) The provisions of K.S.A. 79-201, et seq., and amendments thereto, requiring the
requesting and filing of property tax exemptions shall not apply to the exemption provided
by this section.

      (g)  (1) There is hereby created the Topeka state hospital property advisory committee
which shall be composed of the following members:

      (A) One member shall be a member of the house of representatives whose
representative district includes a portion of Shawnee county and who is appointed by the
speaker of the house of representatives and such member shall serve for a term ending on
the first day of the regular session of the legislature in next ensuing odd-numbered year;

      (B) one member shall be a member of the house of representatives whose representative
district includes a portion of Shawnee county and who is appointed by the minority leader
of the house of representatives and such member shall serve for a term ending on the first
day of the regular session of the legislature in next ensuing odd-numbered year;

      (C) one member shall be a member of the senate whose senate district includes a
portion of Shawnee county and who is appointed by the president of the senate and such
member shall serve for a term ending on the first day of the regular session of the legislature
next ensuing odd-numbered year;

      (D) one member shall be a member of the senate whose senate district includes a
portion of Shawnee county and who is appointed by the minority leader of the senate and
such member shall serve for a term ending on the first day of the regular session of the
legislature in the next ensuing odd-numbered year;

      (E) one member shall be the mayor of the city of Topeka, or designee; and

      (F) at least one member but not more than three members shall be appointed by the
secretary of administration from among those persons who are not officers or employees of
any state or local governmental agency and each such member shall serve at the pleasure
of the secretary of administration.

      (2) The Topeka state hospital property advisory committee shall organize at its first
meeting which shall be called by the secretary of administration by electing a chairperson
and vice-chairperson from among the members. The advisory committee shall meet on call
of the chairperson and shall meet at least once each calendar quarter.

      (3) Members of the Topeka state hospital property advisory committee shall serve
without compensation.

      (4) The Topeka state hospital property advisory committee shall meet and shall advise
and consult with the secretary of administration and other representatives of the department
of administration with regard to current and proposed uses and other dispositions of the
Topeka state hospital property. The secretary of administration shall present formal and
informal proposals for new or different uses or other dispositions of the Topeka state hospital
property and shall solicit comments from the advisory committee thereon. The advisory
committee shall study and shall provide a forum for the expression and discussion of
concerns and recommendations from residents of Shawnee county relating to current and
proposed uses and other dispositions of the Topeka state hospital property.

      (5) Nothing in this section shall be construed to limit the discretion of the secretary in
the disposition of Topeka state hospital property.

      (6) The Topeka state hospital property advisory committee shall terminate when the
Topeka state hospital property passes entirely from state ownership or on December 31,
2002, whichever is sooner.

      (h) This section shall take effect and be in force from and after July 1, 1999.

      Sec.  5. On July 1, 1999, K.S.A. 75-3765 is hereby amended to read as follows: 75-3765.
(a) (1) The secretary of administration shall assign space and facilities in all state-owned or
operated property or buildings in Shawnee county, Kansas, except the state capitol, Topeka
correctional facility, the Kansas neurological institute, the juvenile correctional facility at
Topeka, the employment security administrative office building, 401 Topeka avenue, Kansas
state employment service building, 1309 Topeka avenue, the Topeka state hospital, state
highway shops and laboratory and property of the Kansas national guard, for the use of the
various state agencies and. The secretary may determine, fix and establish a system of rental
charges by the square foot and collect the same monthly for space and facilities occupied
by each state agency whenever any appropriation for rental for space and facilities is made
therefor, in an amount not to exceed the amount appropriated.

      (2) The secretary of administration also may assign space and facilities, establish a
system of rental charges and collect rents for property and buildings owned or controlled
by the department of administration in other parts of the state.

      (3) The amounts collected under paragraphs (1) and (2) shall be remitted by the
secretary of administration to the state treasurer and. The state treasurer shall deposit such
amounts in the state treasury to the credit of the building and ground fund, except that
amounts collected for space and facilities in the state office building located between Ninth,
Tenth, Harrison and Topeka streets shall be deposited in the state treasury to the credit of
the fund provided in K.S.A. 75-3615, and amendments thereto. Notwithstanding the other
provisions of this section, charge for and deposit of rentals for the buildings and properties
to which K.S.A. 75-3629 to 75-3647, and amendments thereto, apply shall be in compliance
with such statutes state buildings operating fund or other funds of the department of
administration as prescribed by the secretary of administration.

      (4) On or before December 31, 1994, and on or before each December 31, thereafter
of each year, the secretary of administration shall present a report to the joint committee
on state building construction concerning any actions taken by the secretary pursuant to
authority granted to the secretary under this subsection. The report shall describe the action
taken and the statutory authority authorizing such action.

      (b) The secretary of administration shall require five-year building space utilization
plans from all state agencies and develop a database of all state-owned or leased building
and storage space. This database shall serve as the central repository of state-owned or leased
building and storage space information. All changes made in the ownership or leasing status
of all building space utilized by state agencies shall be reported to the secretary of
administration and entered into this database. The database shall include the actual and
budgeted amount of money paid by state agencies for building and storage space. The
database may include any other information related to the building space needs of the state
as determined to be necessary by the secretary of administration.

      All state agencies shall cooperate with requests for information concerning building space
and storage space made by the secretary of administration or the secretary of
administration's designee. As used in this section, state agencies shall include those agencies
considered to be quasi-state agencies.

      On or before December 31, 1994, and on or before each December 31 thereafter of each
year, the secretary of administration shall present a report of state-owned or leased building
and storage space information to the joint committee on state building construction and
shall provide notice at the same time to the secretary of the senate and to the chief clerk of
the house of representatives that such report is available to members of the legislature.

      (c) As used in this section, ``state agencies'' also shall include any quasi-state agency.

      And by renumbering sections accordingly;

      Also on page 4, in line 26, after ``K.S.A.'', by inserting ``75-3765 and''; also in line 26, by
striking ``is'' and inserting ``are'';

      On page 1, in the title, in line 10, after ``concerning'', by inserting ``the secretary of social
and rehabilitation services; relating to the''; in line 15, before ``amending'', by inserting
``concerning Topeka state hospital;''; also in line 15, after ``K.S.A.'', by inserting ``75-3765
and''; in line 16, by striking ``section'' and inserting ``sections''; and the bill be passed as
amended.

COMMITTEE OF THE WHOLE
 The Committee returned to Committee of the Whole for consideration of bills on the
calendar under the heading of General Orders with Senator Hardenburger in the chair.

 On motion of Senator Hardenburger the following report for the afternoon session was
adopted.

 Sub SB 329 having been postponed to day and date certain, Thursday, April 1, 1999,
2:00 p.m., the Committee considered the substitute bill.

 Recommended Sub SB 329, as amended by adoption of the committee report
recommending a substitute bill, be amended by motion of Senator Jones on page 3, in line
7, by striking ``is'' and inserting ``has been'';

      On page 9, in line 31, following ``machines'' by inserting a comma; in line 34, by striking
``subsection (e)(2) of'';

      On page 11, in line 28, by striking ``machine'' and inserting ``machines'';

      On page 12, in line 38, by striking all after ``machines''; in line 32, by striking all before
the period;

      On page 14, in line 25, by striking ``grants-in-aid'' and inserting ``grants'';

      On page 16, in line 25, by striking ``During race meetings, the'' and inserting ``The'';

      On page 21, in line 2, following ``Kansas'' by inserting ``or a''; in line 19, following
``wagering'' by inserting ``or electronic gaming machine'';

      On page 26, in line 10, by striking all following ``government''; by striking all in line 11;
in line 12, by striking ``jurisdiction'';

      On page 29, following line 17, by inserting:

        ``Sec.  27. K.S.A. 1998 Supp. 79-3606 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
amendments thereto, tires taxed pursuant to K.S.A. 1998 Supp. 65-3424d, and amendments
thereto, and drycleaning and laundry services taxed pursuant to K.S.A. 1998 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
subdivision 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
secondary 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,
construction, repair, enlargement or equipment of buildings used primarily for human
habitation;

      (d) 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 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, furnishing 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, reconstructing, 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 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 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 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.
If any materials purchased 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 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 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;

      (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
government 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 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 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
remanufacture, 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
transcriptions used by motion picture exhibitors;

      (j) meals served without charge or food used in the preparation of such meals to
employees 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
provisions 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,
manufacturer 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,
manufacture, processing, mining, drilling, refining or compounding of tangible personal
property, 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
subsection, 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
accessories 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
maintenance 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
machinery 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,
maintaining, 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
transmission 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
manufactured 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
distribution 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
equipment is used during a manufacturing, assembling, processing or finishing, storing,
warehousing 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)  For purposes of this subsection ``machinery and equipment used directly and
primarily'' shall include, but not be limited to:

      (A) Mechanical machines or 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
machinery 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
equipment 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 otherwise 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
conducting programs for the improvement of public health;

      (mm) all sales of seeds and tree seedlings; fertilizers, insecticides, herbicides,
germicides, pesticides and fungicides; and services, purchased and used for the purpose of
producing 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
advertising 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
production of oil or gas;

      (qq) all sales of tangible personal property and services purchased by a nonprofit
museum 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
federal 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
broadcasting 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
organizations 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
services 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
persons 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
eliminating diabetes through medical research, public education focusing on disease
prevention and education, patient education including information on coping with diabetes,
and professional 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
Alzheimer'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
organization.

      (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 50 501(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,
reconstructing, 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, furnishing 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 purchased 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 determined 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 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;

      (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
organization 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.; and

      (ccc) all sales of electronic gaming machine games by lottery gaming machine operators
under the Kansas lottery act.'';

      By renumbering sections accordingly;

      Also on page 29, in line 20, by striking ``and 74-8837'' and inserting ``, 74-8837 and 79-
3606'';

      In the title, in line 12, by striking ``and 74-8837'' and inserting ``, 74-8837 and 79-3606''.

 The bill be further amended by motion of Senator Barone on page 7, by striking all in
lines 34 through 39 and inserting:

      ``(1) An amount equal to 1% of the amount credited to the electronic gaming machine
fund from lottery gaming operators located within each county shall be distributed to such
counties;''

 The bill be further amended by motion of Senator Stephens on page 1, in line 18, by
striking ``20'' and inserting ``21'';

 On page 2, in line 13, following ``Kansas'' by inserting ``elementary and secondary'';
following line 14, by inserting:

 ``(g) ``Kansas postsecondary education technology enhancement fund'' means the fund
established by section 18, and amendments thereto;'';

 By lettering subsections accordingly;

 On page 5, in line 26, by striking ``20'' and inserting ``21'';

 On page 8, in line 10, following ``Kansas'' by inserting ``elementary anad secondary''; in
line 11, by striking ``economic develop-''; in line 12, by striking all before ``fund'' and inserting
``Kansas postsecondary education technology enhancement'';

 On page 11, in line 22, by striking ``19'' and inserting ``20'';

 On page 14, by striking all in lines 15 through 35 and inserting:

 ``New Sec.  17. There is hereby created in the state treasury the Kansas elementary and
secondary education technology enhancement fund. Such fund shall be for the sole purpose
of improving access for Kansans to learning and information through modern
telecommunications and computer technologies. Deposits to this fund shall derive
exclusively from revenues of the Kansas lottery deposited pursuant to subsection (e) of
section 5, and amendments thereto, and interest attributable to such funds. The director of
accounts and reports shall disburse funds in accordance with appropriations made therefor
to the state library for grants to local libraries and the board of education of any school
district implementing and maintaining a technology education fund pursuant to K.S.A. 72-
3703, and amendments thereto. The legislature may appropriate only those funds in the
Kansas elementary and secondary education technology enhancement fund as are on hand
as of December 31 of each year preceding the legislative session in which such appropriation
is to be made. Such funds shall not be used to replace property taxes or general fund support
for activities, services, supplies, maintenance, salaries, benefits, equipment, facilities or other
purposes existing and funded by federal, state or local moneys as of the effective date of
this act.

 New Sec.  18. There is hereby created in the state treasury the Kansas postsecondary
education technology enhancement fund. Such fund shall be for the sole purpose of
improving access for Kansans to learning and information through modern
telecommunications and computer technologies. Deposits to this fund shall derive
exclusively from revenues of the Kansas lottery deposited pursuant to subsection (e) of
section 5, and amendments thereto, and interest attributable to such funds. The director of
accounts and reports shall disburse funds in accordance with appropriations made therefor
to colleges and universities under the control of the Kansas board of regents, community
colleges under the control of the state borad of education and Washburn University. The
legislature may appropriate only those funds in the Kansas postsecondary education
technology enhancement fund as are on hand as of December 31 of each year preceding
the legislative session in which such appropriation is to be made. Such funds shall not be
used to replace property taxes or general fund support for activities, services, supplies,
maintenance, salaries, benefits, equipment, facilities or other purposes existing and funded
by federal, state or local moneys as of the effective date of this act.''

 By renumbering sections accordingly;

 On page 19, in line 36, by striking ``20'' and inserting ``21''; in line 43, by striking ``20''
and inserting ``21'';

 On page 29, in line 4, by striking ``20'' and inserting ``21''.

 Upon the showing of five hands, a roll call vote was requested on the motion to
recommend favorably for passage Sub SB 329.

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

      Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Emert,
Feleciano, Gilstrap, Gooch, Hardenburger, Hensley, Jones, Jordan, Kerr, Langworthy,
Lawrence, Lee, Morris, Oleen, Petty, Praeger, Ranson, Salisbury, Steineger, Stephens,
Umbarger, Vidricksen, Vratil.

      Nays: Downey, Goodwin, Harrington, Huelskamp, Pugh, Salmans, Steffes, Tyson.

 The motion carried and the Committee recommended Sub SB 329 be passed as
amended.

FINAL ACTION OF BILLS AND CONCURRENT RESOLUTIONS
 On motion of Senator Emert an emergency was declared by a 2/3 constitutional majority,
and SB 323; Sub SB 329; HB 2362, 2380, 2404, 2565 were advanced to Final Action
and roll call.

   SB 323, An act making and concerning appropriations for the fiscal year ending June 30,
1999, for the state bank commissioner, state board of healing arts, state department of credit
unions, Kansas dental board, consumer credit commissioner, office of the securities
commissioner of Kansas, state board of veterinary examiners, attorney general, secretary of
state, state board of indigents' defense services, Kansas human rights commission, state
corporation commission, department of administration, department of revenue, Kansas
racing and gaming commission, department of revenue - homestead property tax refunds,
Kansas commission on veterans affairs, department of health and environment, department
on aging, department of social and rehabilitation services, department of education, state
library, Fort Hays state university, Kansas state university extension systems and agriculture
research programs, Kansas state university veterinary medical center, Emporia state
university, Pittsburg state university, university of Kansas, university of Kansas medical
center, department of corrections, state fire marshal, Kansas parole board, Kansas highway
patrol, juvenile justice authority, attorney general - Kansas bureau of investigation, Kansas
sentencing commission, board of examiners in optometry, Kansas department of agriculture,
Kansas wheat commission, state conservation commission, department of transportation,
Kansas public employees retirement system, state treasurer, Kansas board of examiners in
fitting and dispensing of hearing aids, Kansas state board of cosmetology, department of
commerce and housing, judicial council, state board of tax appeals, department of human
resources and real estate appraisal board; authorizing certain transfers and capital
improvement projects, imposing certain restrictions and limitations, and directing or
authorizing certain receipts and disbursements and acts incidental to the foregoing, was
considered on final action.

      On roll call, the vote was: Yeas 36, nays 4, 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, Jones, Jordan, Kerr,
Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Praeger, Pugh, Ranson, Salisbury,
Salmans, Steffes, Steineger, Stephens, Umbarger, Vidricksen, Vratil.

      Nays: Bleeker, Hensley, Huelskamp, Tyson.

      The bill passed, as amended.

   Sub SB 329, An act concerning racing and gaming; concerning electronic gaming
machines; amending K.S.A. 74-8701, 74-8702, 74-8704, 74-8711 and 74-8721 and K.S.A.
1998 Supp. 19-101a, 74-8710, 74-8718, 74-8719, 74-8723, 74-8804, 74-8810, 74-8837 and
79-3606 and repealing the existing sections, was considered on final action.

      On roll call, the vote was: Yeas 13, nays 27, present and passing 0; absent or not voting
0.

      Yeas: Barone, Becker, Biggs, Bond, Gilstrap, Gooch, Hensley, Jones, Lee, Petty, Praeger,
Steineger, Vidricksen.

      Nays: Bleeker, Brownlee, Clark, Corbin, Donovan, Downey, Emert, Feleciano, Goodwin,
Hardenburger, Harrington, Huelskamp, Jordan, Kerr, Langworthy, Lawrence, Morris,
Oleen, Pugh, Ranson, Salisbury, Salmans, Steffes, Stephens, Tyson, Umbarger, Vratil.

      The substitute bill did not pass.

   HB 2362, An act concerning the secretary of health and environment; concerning infants
and children; enacting the newborn infant hearing screening act; enacting the residential
childhood lead poisoning prevention act; repealing K.S.A. 65-1,149, 65-1,150, 65-1,152, 65-
1,153, 65-1,154, 65-1,155, 65-1,156 and 65-1,157 and K.S.A. 1998 Supp. 65-1,151, was
considered on final action.

      On roll call, the vote was: Yeas 39, nays 1, 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, Huelskamp,
Jones, Jordan, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Praeger, Pugh,
Ranson, Salisbury, Salmans, Steffes, Steineger, Stephens, Tyson, Umbarger, Vidricksen,
Vratil.

      Nays: Bleeker.

      The bill passed, as amended.

   HB 2380, An act concerning apprenticeship programs; relating to eligibility for training
funds; amending K.S.A. 1998 Supp. 74-5065 and repealing the existing section, was
considered on final action.

      On roll call, the vote was: Yeas 39, nays 1, 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, Huelskamp,
Jones, Jordan, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Praeger, Pugh,
Ranson, Salisbury, Salmans, Steffes, Steineger, Stephens, Tyson, Umbarger, Vidricksen,
Vratil.

      Nays: Bleeker.

      The bill passed.

   HB 2404, An act concerning water appropriation rights; relating to abandonment;
amending K.S.A. 82a-718 and repealing the existing section, was considered on final action.

      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,
Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger, Harrington, Hensley, Huelskamp,
Jones, Jordan, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Praeger, Pugh,
Ranson, Salisbury, Salmans, Steffes, Steineger, Stephens, Tyson, Umbarger, Vidricksen.

      Nays: Emert, Vratil.

      The bill passed, as amended.

   HB 2565, An act relating to Washburn University of Topeka; concerning the financing
and governance thereof; amending K.S.A. 12-198,13-13a04, 13-13a05, 13-13a18 and 13-
13a25 and K.S.A. 1998 Supp. 13-13a23 and repealing the existing sections, was considered
on final action.

      On roll call, the vote was: Yeas 33, nays 7, present and passing 0; absent or not voting 0.

      Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Donovan, Downey, Emert,
Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger, Harrington, Hensley, Jones, Jordan,
Kerr, Lawrence, Morris, Oleen, Petty, Praeger, Pugh, Ranson, Salisbury, Salmans, Steffes,
Steineger, Umbarger, Vidricksen, Vratil.

      Nays: Clark, Corbin, Huelskamp, Langworthy, Lee, Stephens, Tyson.

      The bill passed, as amended.


EXPLANATION OF VOTE

 Mr. President: The amendment I offered would have given residents of Shawnee
County the opportunity to vote on the proposed sales tax increase intended to finance
Washburn University.

 I support Washburn University, and I voted to pass this funding package. However,
whenever the legislature moves to increase taxes for any individual organization or group,
be it in a city or in a county, it is important that we allow the citizens affected the chance
to vote.

 I have been, and will remain, a strong voice for Washburn University. I offered the
amendment not to halt the passage of the sales tax, but to give the citizens of Shawnee
County the opportunity to voice their support for Washburn.

 I want to ensure that the legislature does not feel we may impose taxes to benefit specific
organizations within a local area without fulfilling our duty to give citizens the opportunity
to vote.--Marge Petty

   Senator Hensley requests the record to show he concurs with the ``Explanation of Vote''
offered by Senator Petty on HB 2565 .

   On motion of Senator Emert the Senate adjourned until 9:00 a.m., Friday, April 2, 1999.

HELEN A. MORELAND, Journal Clerk.

PAT SAVILLE, Secretary of Senate.