April 7, 1999

Journal of the Senate

FIFTY NINTH DAY
______
Senate Chamber, Topeka, Kansas
Wednesday, April 7, 1999--10:00 a.m.
 The Senate was called to order by President Dick Bond.

 The roll was called with forty senators present.

 Invocation by Chaplain Fred S. Hollomon:

         Heavenly Father,

         Eight years ago I stood at this podium and prayed for our troops as they completed
      Operation Desert Storm.

         Today, we come to You, O God, on behalf of our airmen over in Kosovo. We pray
      for thousands and thousands of refugees made up mostly of old people, women, and
      children. We pray for the citizens of Belgrade who have to suffer the bombing
      brought on by the decisions of their leader about whom one columnist said, ``He has
      tapped into his countrymen a lethal mixture of national pride, religious zeal, and
      historical grievance.''

         Those who seem to know their history tell us that from the time Balkan babies
      are old enough to understand they are taught to grow up to avenge their forebears
      with killing. And so once more innocent people are dying, three families anxiously
      await news of their captured sons and husbands and people who call themselves
      Christians commit atrocities too gruesome to contemplate.

         Obviously, O God, they have either forgotten, or choose to ignore Your warning,
      ``Vengeance is mine, I will repay,'' says the Lord. (Romans 12:19)

         I pray in the Name of Jesus Christ, the Prince of Peace,

         AMEN

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

   Ways and Means: HB 2519.

REFERRAL OF APPOINTMENTS
 The following appointments made by the Governor and submitted to the senate for
confirmation, were referred to Committees as indicated:

  Kansas Highway Patrol, Superintendent, Donald W. Brownlee, effective upon the date of
confirmation by the Senate to serve at the pleasure of the Governor.

(Transportation and Tourism)
  Kansas Racing and Gaming Commission, Robert Miller, effective upon the date of
confirmation by the Senate to serve a four-year term expiring January 15, 2003.

(Federal and State Affairs)
  Kansas Racing and Gaming Commission, Keith Palmer, effective upon the date of
confirmation by the Senate to serve a four-year term expiring January 15, 2003.

(Federal and State Affairs)
MESSAGE FROM THE GOVERNOR
 SB 43, 81, 88, 93, 123 approved on April 3, 1999.

 SB 135 approved on April 5, 1999.

 SB 121, 229 approved on April 7, 1999.

COMMUNICATIONS FROM STATE OFFICERS
    KANSAS, INC.
  February 1999


 Charles R. Ranson, President, Kansas, Inc., in response to HR 6008, submitted the
Feasibility Study for Adjusted Estimations of Value of Kansas Exports and Annual Survey
of Kansas Manufacturers and Exporters. (ASKME)

    KANSAS SENTENCING COMMISSION
  February 19, 1999


 Barbara S. Tombs, Executive Director, Kansas Sentencing Commission, submitted the
Annual Report for Fiscal Year 1998.

   The President announced the above reports are on file in the office of the Secretary of
the Senate and are available for review at any time.

MESSAGE FROM THE HOUSE
 Announcing, the House accedes to the request of the Senate for a conference on
Substitute SB 117 and has appointed Representatives Tomlinson, Myers and Phelps as
conferees on the part of the House.

 The House accedes to the request of the Senate for a conference on SB 170 and has
appointed Representatives Phill Kline, Neufeld and Reardon as conferees on the part of the
House.

 The House accedes to the request of the Senate for a conference on SB 171 and has
appointed Representatives Tanner, Empson and Reinhardt as conferees on the part of the
House.

 The House accedes to the request of the Senate for a conference on SB 325 and has
appointed Representatives Phill Kline, Neufeld and Reardon as conferees on the part of the
House.

CONFERENCE COMMITTEE REPORT
      Mr. President and Mr. Speaker: Your committee on conference on Senate
amendments to HB 2071, submits the following report:

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

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

Dave Kerr

Ben Vidricksen

Janis K. Lee

Marge Petty

Gary Hayzlett

John Ballou

Clay Aurand

Bruce Larkin

Troy Findley

   On motion of Senator Langworthy, the Senate adopted the conference committee report
on HB 2071, and requested a new conference committee be appointed.
 The President appointed Senators Langworthy, Kerr, Vidricksen, Petty and Lee as a
second conference committee on the part of the Senate on HB 2071.
REPORTS OF STANDING COMMITTEES
 Committee on Federal and State Affairs recommends HB 2040, as amended by House
Committee of the Whole, be amended on page 1, by striking all in lines 18 through 43;

      By striking all on pages 2 through 6 and inserting:

        ``Section  1. As used in this act:

      (a) (1) ``Amusement ride'' means any mechanical or electrical device that carries or
conveys passengers along, around or over a fixed or restricted route or course or within a
defined area for the purpose of giving its passengers amusement, pleasure, thrills or
excitement and shall include but not be limited to:

      (A) Rides commonly known as ferris wheels, carousels, parachute towers, bungee
jumping, reverse bungee jumping, tunnels of love and roller coasters;

      (B) equipment generally associated with winter activities, such as ski lifts, ski tows, j-
bars, t-bars, chair lifts and aerial tramways;

      (C) equipment not originally designed to be used as an amusement ride, such as cranes
or other lifting devices, when used as part of an amusement ride;

      (D) any inflatable equipment or other device that does not have a rigid structure or
frame and which is inflated or otherwise supported by air pressure; and

      (E) any amusement ride not excluded under paragraph (2) of this subsection.

      (2) ``Amusement ride'' shall not include:

      (A) Games, concessions and associated structures;

      (B) any single passenger coin-operated ride that: (i) Is manually, mechanically or
electrically operated; (ii) is customarily placed in a public location; and (iii) does not normally
require the supervision or services of an operator; and

      (C) nonmechanized playground equipment, including, but not limited to, swings,
seesaws, stationary spring-mounted animal features, rider-propelled merry-go-rounds,
climbers, slides, trampolines and physical fitness devices.

      (b) ``Operator'' means a person actually engaged in or directly controlling the operations
of an amusement ride.

      (c) ``Owner'' means a person who owns, leases, controls or manages the operations of
an amusement ride and may include the state or any political subdivision of the state.

      Sec.  2. No amusement ride shall be operated in this state unless at the time of operation
the owner has in effect an insurance policy, written by an insurance company authorized to
do business in Kansas, insuring the owner and operator against liability for bodily injury to
persons arising out of the operation of the amusement ride. Such insurance policy shall:

      (a) Provide for coverage in an amount not less than $500,000; and

      (b) name as an additional insured any person contracting with the owner for the
amusement ride's operation.

      Sec.  3. The governing body of any city or county may establish and enforce safety
standards for amusement rides and may require insurance in an amount which exceeds the
amount required by section 2, and amendments thereto. The governing body of any city or
county may allow, in lieu of an insurance policy, an owner or operator to be self-insured.

      Sec.  4. This act shall take effect and be in force from and after its publication in the
statute book.''; and the bill be passed as amended.

REPORT ON ENGROSSED BILLS
 SB 107, 356 reported correctly engrossed April 2, 1999.

 SB 326 reported correctly engrossed April 6, 1999.

REPORT ON ENROLLED BILLS
 SB 76, 89, 110, 126, 130, 161, 186 reported correctly enrolled, properly signed and
presented to the Governor on April 6, 1999.

 SR 1849, 1850, 1851 reported correctly enrolled, properly signed and presented to the
Secretary of the Senate on April 7, 1999.

 SCR 1611 reported correctly enrolled, properly signed and presented to the Secretary
of State on April 7, 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
Donovan in the chair.

 On motion of Senator Donovan the following report was adopted

 Recommended HB 2538, 2548 be amended by adoption of the committee amendments,
and the bills be passed as amended.

 SCR 1612 be adopted.

 SB 317 be amended by adoption of the committee amendments, be further amended by
motion of Senator Oleen on page 2, following line 22, by inserting a paragraph as follows:

      ``If there has been an assignment of the child's support rights pursuant to K.S.A. 39-709,
and amendments thereto, the secretary of social and rehabilitation services shall be a
necessary party to any action under this subsection.'';

      Also on page 2, by striking all in lines 32 through 35, and the bill be passed as further
amended.

 Sub HB 2322 be amended by adoption of the committee amendments, and the bill be
further amended by motion of Senator Clark on page 1, in line 14, by striking ``Upon'' and
inserting ``On and after January 1, 2000, upon''; following line 22, by inserting the following:

        ``Sec.  2. K.S.A. 66-301 is hereby amended to read as follows: 66-301. (a) Whenever any
railroad, either steam or electric, shall run through any farm so as to divide it, such railroad
at the request of the owner of such farm, shall construct, keep and maintain, a crossing
either on, over or under such railroad track, at some convenient place, which crossing shall
be so constructed as to permit ready and free crossing thereon, by animals, farm implements
and vehicles. As a condition for keeping or maintaining any existing crossing, such railroad
shall not require the owner of such farm to pay any rental fee, nor require the purchase of
liability of insurance.
      (b) The provisions of K.S.A. 66-301 through 66-303, and amendments thereto, shall
apply to any farm railroad crossing constructed and in existence prior to the effective date
of this act.

      Sec.  3. K.S.A. 66-301 and 66-1213 are hereby repealed.'';

      By renumbering section 2 as section 4;

      Also on page 1, in line 23, by striking ``Jan-''; in line 24, by striking all in line 24 and
inserting ``its publication in the Kansas register.''

      In the title, in line 10, by striking all following ``ACT''; in line 11, by striking all preceding
the period and inserting ``relating to corporations; concerning public utilities and common
carriers; amending K.S.A. 66-301 and repealing the existing section; also repealing K.S.A.
66-1213'', and the bill be passed as further amended.

 Sub HB 2469 be amended by adoption of the committee amendments, and the bill be
further amended by motion of Senator Tyson on page 1, by striking all in lines 20 through
43;

      By striking all on page 2;

      On page 3, by striking all in lines 1 through 28;

      And by renumbering sections accordingly;

      Also on page 3, in line 41, by striking ``Sec.'' and inserting ``Section'';

      On page 12, in line 5, by striking ``8'' and inserting ``7''; also in line 5, by striking ``22''
and inserting ``21''; in line 11, by striking ``8'' and inserting ``7''; also in line 11, by striking
``22'' and inserting ``21'';

      On page 16, in lines 29, 34 and 38, by striking ``10'' and inserting ``9'';

      On page 17, in line 14, by striking ``14'' and inserting ``13'';

      On page 18, in line 21, by striking ``17 and 18'' and inserting ``16 and 17'';

      On page 22, in line 9, by striking ``21'' and inserting ``20'';

      On page 25, in line 9, by striking ``21-4201,'';

      On page 1, in the title, in line 15, by striking ``21-4201,'', and the bill be passed over and
retain a place on the calendar.

 S Sub for HB 2228 be passed over and retain a place on the calendar.

MESSAGE FROM THE HOUSE
 Announcing, the House announces the appointment of Representatives Spangler to
replace Representatives Reardon as a conferee on SB 170.

 Also, rejection of SB 7.

   On motion of Senator Emert, the Senate recessed until 3:00 p.m.

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

MESSAGE FROM THE GOVERNOR
    April 7, 1999
  To the Senate of the State of Kansas:

 Submitted herewith for confirmation by the Senate are appointments made by me as
Governor of the State of Kansas as of April 7, 1999, pursuant to law.

                                                                                    Bill Graves

                                                                                    Governor

  Member, Employment Security Board of Review, Harry D. Helser, pursuant to the authority
vested in me by K.S.A. 44-709, effective upon the date of confirmation by the Senate to
serve a four-year term expiring March 15, 2003.

  Member, Kansas Development Finance Authority, Daniel P. Snyder, pursuant to the
authority vested in me by K.S.A. 74-8903, effective upon the date of confirmation by the
Senate to fulfill a term expiring January 15, 2001.

  Member, Kansas Development Finance Authority, Paul J. Thompson, pursuant to the
authority vested in me by K.S.A. 74-8903, effective upon the date of confirmation by the
Senate to fulfill a term expiring January 15, 2001.

MESSAGE FROM THE HOUSE
 Announcing the House concurs in Senate amendments to HB 2565.

 The House concurs in Senate amendments to HCR 5021.

 The House adopts the conference committee report on House Substitute for SB 60.

 The House adopts the conference committee report on SB 62.

 The House adopts the Conference Committee Report to agree to disagree on HB 2071
and has appointed Representatives Hayzlett, Ballou, Aurand, Larkin and Findley as second
conferees on the part of the House.

CONSIDERATION OF MOTIONS TO CONCUR OR NONCONCUR
 Senator Oleen moved the Senate Concur in house amendments to SB 19.
 SB 19, An act concerning the Kansas commission on veterans affairs; authorizing the
establishment of a state system of veterans cemeteries.

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

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

      The Senate concurred.

 Senator Steffes moved the Senate Concur in house amendments to Sub SB 117.

 Sub SB 117, An act concerning unclaimed property; providing for the disposition thereof;
amending K.S.A. 58-3934, 58-3936, 58-3938, 58-3943, 58-3949, 58-3952, 58-3953, 58-3962
and 58-3974 and K.S.A. 1998 Supp. 58-3935 and 58-3950 and repealing the existing sections;
also repealing K.S.A. 58-3937, 58-3940, 58-3941, 58-3942, 58-3944, 58-3945, 58-3946, 58-
3947 and 58-3948 and K.S.A. 1998 Supp. 58-3939.

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

      Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Downey,
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: Emert.

      The Senate concurred.

 Senator Hardenburger moved the Senate Concur in house amendments to SB 230.
 SB 230, An act concerning elections and election procedures; amending K.S.A. 25-306,
25-433, 25-4302, 25-4322, 25-4324 and 25-4607 and K.S.A. 1998 Supp. 25-1122, 25-1123,
25- 1124, 25-2309, 25-2316c, 25-2354 and repealing the existing sections; also repealing
K.S.A. 25- 2015.

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

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

      The Senate concurred.

CONFERENCE COMMITTEE REPORT
      Mr. President and Mr. Speaker: Your committee on conference on House
amendments to SB 60, 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 as House Substitute for Senate Bill
No. 60, as follows:

      On page 3, by striking lines 37 through 39 and inserting sections 2 through 16 as follows:

      ``Sec.  2. K.S.A. 12-2620 is hereby amended to read as follows: 12-2620. (a) All
certificates granted hereunder shall be perpetual unless sooner suspended or revoked by
the commissioner or the attorney general.

      (b) Whenever the commissioner shall deem it necessary the commissioner may make,
or direct to be made, an examination of the affairs and the financial condition of any pool,
except that once every five years the commissioner shall conduct an examination of the
affairs and the financial condition of each pool. Each pool shall submit a certified
independent audited financial statement no later than 90 days after the end of the fiscal
year. The financial statement shall include outstanding reserves for claims and for claims
incurred but not reported. Each pool shall file reports as to income, expenses and loss data
at such times and in such manner as the commissioner shall require. Any pool which does
not use rates developed by an approved rating organization shall file with the commissioner
an actuarial certification that such rates are actuarially sound. Whenever it appears to the
commissioner from such examination or other satisfactory evidence that the ability to pay
current and future claims of any such pool is impaired, or that it is doing business in violation
of any of the laws of this state, or that its affairs are in an unsound condition so as to endanger
its ability to pay or cause to be paid claims in the amount, manner and time due, the
commissioner shall, before filing such report or making the same public, grant such pool
upon reasonable notice a hearing, and, if on such hearing the report be confirmed, the
commissioner shall may require any of the actions allowed under K.S.A. 40-222b and
amendments thereto or suspend the certificate of authority for such pool until its ability to
pay current and future claims shall have been fully restored and the laws of the state fully
complied with. The commissioner may, if there is an unreasonable delay in restoring the
ability to pay claims of such pool and in complying with the law or if rehabilitation or
corrective action taken under K.S.A. 40-222b and amendments thereto is unsuccessful,
revoke the certificate of authority of such pool to do business in this state. Upon revoking
any such certificate the commissioner shall communicate the fact to the attorney general,
whose duty it shall be to commence and prosecute an action in the proper court to dissolve
such pool or to enjoin the same from doing or transacting business in this state. The
commissioner of insurance may call a hearing under K.S.A. 40-222b, and amendments
thereto, and the provisions thereof shall apply to group-funded pools.

      (c) On an annual basis, or within 30 days of any change thereto, each pool shall supply
to the commissioner the name and qualifications of the designated administrator of the pools
and the terms of the specific and aggregate excess insurance contracts of the pool.

      Sec.  3. K.S.A. 1998 Supp. 12-2621 is hereby amended to read as follows: 12-2621. (a)
With respect to the categories of coverage described in subparagraphs (d)(1) through (4) of
K.S.A. 12-2618, and amendments thereto, premium contributions to the pool shall be based
upon appropriate manual classification and rates, plus or minus applicable experience credits
or debits, and minus any advance discount approved by the trustees, not to exceed 25% of
manual premium. The pool shall use rules, classifications and rates as promulgated by an
approved rating organization for workers compensation if the pool has been in operation
for less than five years. Such rates shall either be the rates effective June 1, 1994, or the
prospective loss costs, as defined in K.S.A. 40-1113c, and amendments thereto, plus
expenses necessary to administer the pool. For purposes of subsection (b), the prospective
loss costs shall be presumed to be the 70% required to be deposited in the claims fund. If
the pool has been in operation for more than five years, the board of trustees may determine
such rates and discounts as approved by the commissioner. Premium contributions to the
pool for all other lines of insurance shall be based on rates filed by a licensed rating
organization or on rates of certain companies filing rates with the commissioner and
approved by the commissioner for the pool. In lieu of the foregoing, the board of trustees
may determine such classification, rates and discounts as approved by the commissioner.

      Premium contributions to any pool providing life insurance or any pool providing group
sickness and accident insurance as described in K.S.A. 12-2617, and amendments thereto,
shall be based on sound actuarial principles.

      (b) An amount equal to at least 70% of the annual premium shall be maintained in a
designated depository for the purpose of paying claims in a claims fund account. If the pool
has been in operation for more than five years the commissioner may authorize allocation
of a different amount to the claims fund account, if solvency of the pool would not be
endangered. The remaining annual premium shall be placed into a designated depository
for the payment of taxes, fees and administrative and other operational costs in an
administrative fund account.

      (c) Any moneys for a fund year in excess of the amount necessary to fulfill all obligations
of the pool for that fund year, including any obligation to retain adequate surplus funds, as
defined by subsection (h) of K.S.A. 12-2618, and amendments thereto, in lieu of specific
and aggregate excess insurance, may be declared to be refundable by the trustees not less
than 12 months after the end of the fund year. Any such refund shall be paid only to those
members who remained participants in the pool for an entire year. Payment of previously
earned refunds shall not be contingent on continued membership in the pool.

      Sec.  4. K.S.A. 12-2622 is hereby amended to read as follows: 12-2622. The trustees
shall not utilize any of the contributions collected as premiums for any purpose unrelated
to the pool. Moneys not needed for current obligations may be invested by the trustees.
Such investments shall be limited to bonds or other evidences of indebtedness issued,
assumed or guaranteed by the United States of America, or by any agency or instrumentality
thereof; in certificates of deposit in a federally insured bank located in Kansas; or in shares
or savings deposits in a federally insured savings and loan association located in Kansas Such
investments shall be limited to investments permitted by K.S.A. 12-1677b and 75-4209 and
amendments thereto, except that a pool which has been in existence for at least five years
shall be permitted to invest in any of the securities or other investments permitted by article
2a of chapter 40 of the Kansas Statutes Annotated.

      Sec.  5. K.S.A. 1998 Supp. 44-584 is hereby amended to read as follows: 44-584. (a) The
application for a new certificate shall be signed by the trustees of the trust fund created by
the pool. Any application for a renewal of an existing certificate shall meet at least the
standards established in subsections (f), (g), (h), (i), (j), (k), (l), (m) and (n) of K.S.A. 44-582
and amendments thereto. After evaluating the application the commissioner shall notify the
applicant that the plan submitted is approved or conversely, if the plan submitted is
inadequate, the commissioner shall then fully explain to the applicant what additional
requirements must be met. If the application is denied, the applicant shall have 15 days to
make an application for hearing by the commissioner after service of the denial notice. The
hearing shall be conducted in accordance with the provisions of the Kansas administrative
procedure act.

      (b) An approved certificate of authority shall remain in full force and effect until such
certificate is suspended or revoked by the commissioner. An existing pool operating under
an approved certificate of authority must file with the commissioner, within 120 days
following the close of the pool's fiscal year, a current financial statement on a form approved
by the commissioner showing the financial ability of the pool to meet its obligations under
the worker compensation act and confirmation of specific and aggregate excess insurance
as required by law for the pool. If an existing pool's certificate of authority is suspended or
revoked, such pool shall have the same rights to a hearing by the commissioner as for
applicants for new certificates of authority as set forth in subsection (a) above.

      (c) Whenever the commissioner shall deem it necessary the commissioner may make,
or direct to be made, an examination of the affairs and financial condition of any pool in
accordance with K.S.A. 40-222 and K.S.A. 40-223 and amendments thereto, except that once
every five years the commissioner shall conduct an examination of the affairs and financial
condition of each pool. Each pool shall submit a certified independent audited financial
statement no later than 90 days after the end of the pool's fiscal year. The financial statement
shall include outstanding reserves for claims and for claims incurred but not reported. Each
pool shall file payroll records, accident experience and compensation reports and such other
reports and statements at such times and in such manner as the commissioner shall require.
Whenever it appears to the commissioner from such examination or other satisfactory
evidence that the solvency of any such pool is impaired, or that it is doing business in
violation of any of the laws of this state, or that its affairs are in an unsound condition so as
to endanger its ability to pay or cause to be paid the compensation in the amount, manner
and time due as provided for in the Kansas workers compensation act, the commissioner
shall, before filing such report or making the same public, grant such pool upon reasonable
notice a hearing in accordance with the provisions of the Kansas administrative procedure
act, and, if on such hearing the report be confirmed, the commissioner shall suspend the
certificate of authority for such pool until its solvency shall have been fully restored and the
laws of the state fully complied with. The commissioner may, if there is an unreasonable
delay in restoring the solvency of such pool and in complying with the law, revoke the
certificate of authority of such pool to do business in this state. Upon revoking any such
certificate the commissioner shall communicate the fact to the attorney general, whose duty
it shall be to commence and prosecute an action in the proper court to dissolve such pool
or to enjoin the same from doing or transacting business in this state. The commissioner of
insurance may call a hearing under K.S.A. 40-222b, and amendments thereto, and the
provisions shall apply to group workers compensation pools.

      Sec.  6. K.S.A. 1998 Supp. 44-585 is hereby amended to read as follows: 44-585. (a)
Premium contributions to the pool shall be based upon appropriate manual classification
and rates, plus or minus applicable experience credits or debits, and minus any advance
discount approved by the trustees, not to exceed 15% of manual premium. The pool must
use rules, classifications and rates as promulgated by an approved rating organization and
must report premium and loss data to a rating organization. Such rates shall either be the
rates effective June 1, 1994, or the prospective loss costs, as defined in K.S.A. 40-1113, and
amendments thereto, plus expenses necessary to administer the pool. For purposes of
subsection (b) the prospective loss costs shall be presumed to be the 70% required to be
deposited in the claims fund. If the pool has been in operation for more than five years, the
board of trustees may determine such rates as approved by the commissioner.

      (b) At least 70% of the annual premium shall be placed into a designated depository
for the sole purpose of paying claims. If so approved by the commissioner of insurance, the
annual premium to be designated to such depository may be determined to be the net
amount of premium after all or a portion of the specific and aggregate excess insurance
premium costs have been paid. This shall be called the claims fund account. The remaining
annual premium shall be placed into a designated depository for the payment of taxes, fees
and administrative costs. This shall be called the administrative fund account. If a pool has
been in operation for more than five years, the commissioner may authorize allocation of a
different amount to the claims fund account, if solvency of the pool would not be endangered.

      (c) Any surplus moneys for a fund year in excess of the amount necessary to fulfill all
obligations under the workers compensation act for that fund year may be declared to be
refundable by the trustees not less than 12 months after the end of the fund year, upon the
approval of the commissioner. Such approval can be obtained only upon satisfactory
evidence that sufficient funds remain on deposit for the payment of all outstanding claims
and expenses, including incurred but not reported claims. Any such refund shall be paid
only to those employers who remained participants in the pool for an entire year. Payment
of previously earned refunds shall not be contingent on continued membership in the pool.

      Sec.  7. K.S.A. 44-586 is hereby amended to read as follows: 44-586. The trustees shall
not utilize any of the moneys collected as premiums for any purpose unrelated to Kansas
workers' compensation. Moneys not needed for current obligations may be invested by the
trustees. Such investments shall be limited to bonds or other evidences of indebtedness
issued, assumed or guaranteed by the United States of America, or by any agency or
instrumentality thereof; in certificates of deposit in a federally insured bank; or in shares or
savings deposits in a federally insured savings and loan association Unless authorized
elsewhere in this act, all funds of a pool shall be invested only in securities or other
investments permitted by article 2a of chapter 40 of the Kansas Statutes Annotated, or such
other securities or investments as the commissioner may permit.

      New Sec.  8. The purpose of sections 8 through 14 is to provide the state of Kansas with
a comprehensive body of law for the effective regulation and supervision of title insurance
agencies engaged in settlement and closing of the sale of an interest in real estate.

      New Sec.  9. As used in this act, unless the context otherwise requires:

      (a) ``Commissioner'' means the commissioner of insurance of the state of Kansas.

      (b) ``Escrow'' means written instruments, money or other items deposited by one party
with a depository, escrow agent or escrow for delivery to another party upon the
performance of a specified condition or the happening of a certain event.

      (c) ``Person'' means a natural person, partnership, association, cooperative, corporation,
trust or other legal entity.

      (d) ``Qualified financial institution'' means an institution that is:

      (1) Organized or (in the case of a U.S. branch or agency office of a foreign banking
organization) licensed under the laws of the United States or any state and has been granted
authority to operate with fiduciary powers;

      (2) regulated, supervised and examined by federal or state authorities having regulatory
authority over banks and trust companies;

      (3) insured by the appropriate federal entity; and

      (4) qualified under any additional rules established by the commissioner.

      (e) ``Title insurance agent'' or ``agent'' means an authorized person, other than a bona
fide employee of the title insurer who, on behalf of the title insurer, performs the following
acts, in conjunction with the issuance of a title insurance report or policy:

      (1) Determines insurability and issues title insurance reports or policies, or both, based
upon the performance or review of a search, or an abstract of title;

      (2) collects or disburses premiums, escrow or security deposits or other funds;

      (3) handles escrow, settlements or closings;

      (4) solicits or negotiates title insurance business; or

      (5) records closing documents.

      (f) ``Title insurer'' or ``insurer'' means a company organized under laws of this state for
the purpose of transacting the business of title insurance and any foreign or non-U.S. title
insurer licensed in this state to transact the business of title insurance.

      (g) ``Title insurance policy'' or ``policy'' means a contract insuring or indemnifying
owners of, or other persons lawfully interested in, real or personal property or any interest
in real property, against loss or damage arising from any or all of the following conditions
existing on or before the policy date and not excepted or excluded:

      (1) Defects in or liens or encumbrances on the insured title;

      (2) unmarketability of the insured title;

      (3) invalidity, lack of priority, or unenforceability of liens or encumbrances on the stated
property;

      (4) lack of legal right of access to the land; or

      (5) unenforceability of rights in title to the land.

      New Sec.  10. A title insurance agent may operate as an escrow, settlement or closing
agent, provided that:

      (a) All funds deposited with the title insurance agent in connection with an escrow,
settlement or closing shall be submitted for collection to, invested in or deposited in a
separate fiduciary trust account or accounts in a qualified financial institution no later than
the close of the next business day, in accordance with the following requirements:

      (1) The funds shall be the property of the person or persons entitled to them under the
provisions of the escrow, settlement or closing agreement and shall be segregated for each
depository by escrow, settlement or closing in the records of the title insurance agent in a
manner that permits the funds to be identified on an individual basis;

      (2) the funds shall be applied only in accordance with the terms of the individual
instructions or agreements under which the funds were accepted; and

      (3) an agent shall not retain any interest on any money held in an interest-bearing
account without the written consent of all parties to the transaction.

      (b) Funds held in an escrow account shall be disbursed only:

      (1) Pursuant to written authorization of buyer and seller;

      (2) pursuant to a court order; or

      (3) when a transaction is closed according to the agreement of the parties.

      (c) A title insurance agent shall not commingle the agent's personal funds or other
moneys with escrow funds. In addition, the agent shall not use escrow funds to pay or to
indemnify against the debts of the agent or of any other party. The escrow funds shall be
used only to fulfill the terms of the individual escrow and none of the funds shall be utilized
until the necessary conditions of the escrow have been met. All funds deposited for real
estate closings, including closings involving refinances of existing mortgage loans, which
exceed $2,500 shall be in one of the following forms:

      (1) Lawful money of the United States;

      (2) wire transfers such that the funds are unconditionally received by the title insurance
agent or the agent's depository;

      (3) cashier's checks, certified checks or bank money orders issued by a federally insured
financial institution and unconditionally held by the title insurance agent;

      (4) funds received from governmental entities or drawn on an escrow account of a real
estate broker licensed in the state or drawn on an escrow account of a title insurer or title
insurance agent licensed to do business in the state; or

      (5) other negotiable instruments which have been on deposit in the escrow account at
least 10 days.

      (d) Each title insurance agent shall have an audit made of its escrow, settlement and
closing deposit accounts, conducted by a certified public accountant or by a title insurer for
which the title insurance agent has a licensing agreement, according to the following
schedule. Audits shall be considered current if dated within the 12 months prior to
submission of the audit as required herein. The title insurance agent shall provide a copy
of the audit report to the commissioner and to each title insurance company which it
represents within 160 days after the close of the calendar year for which an audit is required.
Title insurance agents who are attorneys and who issue title insurance policies as part of
their legal representation of clients are exempt from the requirements of this subsection.
However, the title insurer, at its expense, may conduct or cause to be conducted an annual
audit of the escrow, settlement and closing accounts of the attorney. Attorneys who are
exclusively in the business of title insurance are not exempt from the requirements of this
subsection. Audits shall be required as follows:

      (1) Annual audit required in counties having a population of 40,001 and over;

      (2) biennial audit required in counties having a population of 20,001 - 40,000; and

      (3) triennial audit required in counties having a population of 20,000 or under.

      (e) The commissioner may promulgate rules and regulations setting forth the standards
of the audit and the form of audit report required.

      (f) If the title insurance agent is appointed by two or more title insurers and maintains
fiduciary trust accounts in connection with providing escrow and closing settlement services,
the title insurance agent shall allow each title insurer reasonable access to the accounts and
any or all of the supporting account information in order to ascertain the safety and security
of the funds held by the title insurance agent.

      (g) Nothing in this section is intended to amend, alter or supersede other laws of this
state or the United States, regarding an escrow holder's duties and obligations.

      New Sec.  11. (a) The title insurance agent shall maintain sufficient records of its escrow
operations and escrow trust accounts so that the commissioner may adequately ensure that
the title insurance agent is in compliance with all provisions of sections 8 through 14 and
amendments thereto. The commissioner may prescribe the specific record entries and
documents to be kept and the length of time for which the records must be maintained.

      (b) The title insurance agent shall make available for inspection by the commissioner,
or the commissioner's representatives, all records relating to the title insurance agent's
escrow, settlement and closing business, and any other fiduciary trust accounts required to
be kept by the title insurance agent. Such availability for inspection shall include any records
to which subsection (f) of section 10 and amendments thereto applies.

      New Sec.  12. (a) The title insurance agent who handles escrow, settlement or closing
accounts shall file with the commissioner a surety bond or irrevocable letter of credit in a
form acceptable to the commissioner, issued by an insurance company or financial institution
authorized to conduct business in this state, securing the applicant's or the title insurance
agent's faithful performance of all duties and obligations set out in sections 8 through 14
and amendments thereto.

      (b) The terms of the bond or irrevocable letter of credit shall be:

      (1) The surety bond shall provide that such bond may not be terminated without 30
days prior written notice to the commissioner.

      (2) An irrevocable letter of credit shall be issued by a bank which is insured by the
federal deposit insurance corporation or its successor if such letter of credit is initially issued
for a term of at least one year and by its terms is automatically renewed at each expiration
date for at least an additional one-year term unless at least 30 days prior written notice of
intention not to renew is given to the commissioner of insurance.

      (c) The amount of the surety bond or irrevocable letter of credit for those agents
servicing real estate transactions on property located in counties having a certain population
shall be required as follows:

      (1) $100,000 surety bond or irrevocable letter of credit in counties having a population
of 40,001 and over;

      (2) $50,000 surety bond or irrevocable letter of credit in counties having a population
of 20,001 to 40,000; and

      (3) $25,000 surety bond or irrevocable letter of credit in counties having a population
of 20,000 or under.

      (d) The surety bond or irrevocable letter of credit shall be for the benefit of any person
suffering a loss if the title insurance agent converts or misappropriates money received or
held in escrow, deposit or trust accounts while acting as a title insurance agent providing
any escrow or settlement services.

      New Sec.  13. The commissioner may issue rules, regulations and orders necessary to
carry out the provisions of sections 8 through 14 and amendments thereto.

      New Sec.  14. If the commissioner determines that the title insurance agent or any other
person has violated this act, or any rules and regulation or order promulgated thereunder,
after notice and opportunity to be heard, the commissioner may order that such person be
subject to the penalties provided in K.S.A. 40-2406 et seq. and amendments thereto.

      Sec.  15. K.S.A. 12-2620, 12-2622 and 44-586 and K.S.A. 1998 Supp. 12-2621, 40-112,
40-112a, 44-584 and 44-585 are hereby repealed.

      Sec.  16. This act shall take effect and be in force from and after its publication in the
statute book.'';

      On page 1, in the title, in line 9, by striking ``concerning'' and inserting ``relating to''; also
in line 9, following the semicolon, by inserting ``concerning municipal funded pools;
concerning title insurance and escrow accounts; concerning the''; in line 10, by striking all
after ``K.S.A.''; in line 11 by striking all before the semicolon and inserting ``amending 12-
2620, 12-2622 and 44-586 and K.S.A. 1998 Supp. 12-2621, 40-112, 44-584 and 44-585 and
repealing the existing sections''.

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

Don Myers

Eber Phelps

Don Steffes

Sandy Praeger

Paul Feleciano, Jr.

 Senator Steffes moved the Senate adopt the Conference Committee Report on H Sub
for SB 60.

      On roll call, the vote was: Yeas 34, nays 6, present and passing 0; absent or not voting 0.

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

      Nays: Bleeker, Clark, Huelskamp, Pugh, Salmans, Tyson.

      The Conference Committee report was adopted.

CONFERENCE COMMITTEE REPORT
      Mr. President and Mr. Speaker: Your committee on conference on House
amendments to SB 62, 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 3, by striking all in lines 2 through 43;

      On page 4, by striking all in lines 1 through 13;

      By renumbering the remaining sections accordingly;

      Also on page 4, in line 14, by striking ``, 75-4318'';

      On page 1, in the title, in line 15, by striking all after the ``semicolon''; in line 16, by
striking all before ``amending''; also in line 16 by striking ``, 75-4318''

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

Ted Powers

Gwen Welshimer

Janice Hardenburger

Rich Becker

U.L. (Rip) Gooch

 Senator Hardenburger moved the Senate adopt the Conference Committee Report on
SB 62.

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

      Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Downey,
Emert, Feleciano, 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: Gilstrap.

      The Conference Committee report was adopted.

CONFERENCE COMMITTEE REPORT
      Mr. President and Mr. Speaker: Your committee on conference on House
amendments to SB 65, 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 2, in line 38, after ``conducted'' by inserting ``by the secretary of agriculture'';

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

Dan Johnson

Galen Weiland

Stephen R. Morris

Dwayne Umbarger

Harry Stephens

 Senator Morris moved the Senate adopt the Conference Committee Report on SB 65.

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

      Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, 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: Corbin.

      The Conference Committee report was adopted.

CONFERENCE COMMITTEE REPORT
      Mr. President and Mr. Speaker: Your committee on conference on Senate
amendments to HB 2033, submits the following report:

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

      On page 1, by striking all in line 42;

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

Chris Steineger

Larry D. Salmans

Garry Boston

Jerry Henry

Phyllis Gilmore

 Senator Praeger moved the Senate adopt the Conference Committee Report on HB
2033.

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

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

      The Conference Committee report was adopted.

CONFERENCE COMMITTEE REPORT
      Mr. President and Mr. Speaker: Your committee on conference on Senate
amendments to HB 2071, submits the following report:

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

      On page 2, in line 12, by striking ``$1,100,000,000'' and inserting ``$900,000,000'';

      By striking all on pages 11 through 32;

      On page 33, by striking all in lines 1 through 24 and inserting the following:

      ``New Sec.  9. (a) The director of accounts and reports shall transfer from the state
general fund to the state highway fund the following amounts:

(1)On July 1, 2002, and quarterly thereafter$17,325,000;
(2)on July 1, 2003, and quarterly thereafter$42,000,000;
(3)on July 1, 2004, and quarterly thereafter$67,950,000;
(4)on July 1, 2005, and quarterly thereafter$73,150,000;
(5)on July 1, 2006, and quarterly thereafter$78,275,000;
(6)on July 1, 2007, and quarterly thereafter$83,750,000;
(7)on July 1, 2008, and quarterly thereafter$89,600,000;
(8) on July 1, 2009, October 1, 2009, January 1, 2010 and
April 1, 2010		$95,875,000.
        (b) All transfers made in accordance with the provisions of this section shall be
considered to be revenue transfers from the state general fund.'';

      By renumbering sections accordingly;

      On page 44, in line 30, by striking ``$990,000,000'' and inserting ``$750,000,000''; in line
41, by striking ``subsections''; in line 42, by striking ``(a) and (b)'' and inserting ``subsection
(a)''; in line 43, preceding the period, by inserting ``and bonds issued under subsection (b)
of K.S.A. 68-2320, and amendments thereto shall mature not more than 15 years from their
date'';

      On page 51, by striking lines 41 through 43;

      By striking all on page 52;

      On page 53, by striking all in lines 1 through 28;

      By renumbering sections accordingly;

      On page 57, by striking all in lines 39 through 43;

      By striking all of pages 58 through 61;

      On page 62, by striking all in lines 1 through 9;

      By renumbering sections accordingly;

      Also on page 62, by striking all in lines 30 through 43;

      By renumbering sections accordingly;

      On page 63, by striking all in lines 33 through 43;

      On page 64, by striking all in line 1;

      By renumbering sections accordingly;

      Also on page 64, in line 6, by striking ``64.85%'' and inserting ``55.3%''; in line 7, by
striking ``35.15%'' and inserting ``44.7%''; in line 19, by striking ``9.51%'' and inserting ``9%'';
by striking all of lines 23 through 43;

      On page 65, by striking all in lines 1 through 9;

      On page 66, in line 39, by striking ``79-3491a, 79-3492b,''; in line 40, by striking ``79-
34,118, 79-34,126, 79-34,141,'' and inserting ``79-34,126,''; in line 42, by striking ``, 79-
3408c''; by striking all in line 43;

      On page 67, by striking all in lines 1 and 2;

      By renumbering sections accordingly;

      In the title, by striking all in line 18; in line 19, by striking ``8-2409,''; in line 22, by striking
``79-3491a, 79-3492b,''; in line 23, by striking ``79-34,118, 79-34,126, 79-34,141,'' and
inserting ``79-34,126,''; in line 24, by striking ``8-143, 8-143j, 8-172,''; in line 25, by striking
``, 79-3408c'';

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

David M. Kerr

Ben Vidricksen

Marge Petty

Janis K. Lee

Gary Hayzlett

John Ballou

Clay Aurand

 Senator Langworthy moved the Senate adopt the Conference Committee Report on HB
2071.
 On roll call a call of the Senate was requested by five senators.

      On roll call, the vote was: Yeas 9, nays 31, present and passing 0; absent or not voting 0.

      Yeas: Bleeker, Brownlee, Clark, Gilstrap, Huelskamp, Jordan, Pugh, Salmans, Tyson.

      Nays: Barone, Becker, Biggs, Bond, Corbin, Donovan, Downey, Emert, Feleciano,
Gooch, Goodwin, Hardenburger, Harrington, Hensley, Jones, Kerr, Langworthy, Lawrence,
Lee, Morris, Oleen, Petty, Praeger, Ranson, Salisbury, Steffes, Steineger, Stephens,
Umbarger, Vidricksen, Vratil.

      The Conference Committee report was not adopted.

 On motion of Senator Hensley the call of the Senate was lifted.


EXPLANATION OF VOTE
 Mr. President: I voted yes for HB 2071 because it moves in the direction of utilizing
more of the bonded amount to build highways and not just pay for interest. It also does not
include tax increases.--Karin Brownlee

   Mr. President: I vote NO on HB 2071. It is a deception to claim that by voting for
this bill you support a transportation plan to be funded without a tax increase.

 HB 2071 is a tax increase. Using all available general fund resources for a transportation
plan sets the stage for disaster. MR/DD, mental health, senior services, education, public
safety, juvenile justice reform, and all other general fund needs will be put at risk in the
future. And future legislatures will be forced to increase taxes to meet those needs.

 In addition, this bill would not provide for an increase in the base budget per pupil for
school finance in fiscal years 2001 through 2004. According to information provided by the
Department of Education, local school boards will be forced to increase their local option
budgets, resulting in an increase in local property taxes of $33 million in FY 2000 and $27.5
million every year thereafter.

 Those who claim that we can pass a transportation plan without raising taxes to fund it
are seriously misleading their constituents.--Anthony Hensley

   Mr. President: I voted for the conference committee's report on HB 2071, because it
would move the senate toward a highway plan without a tax increase and a more reasonable
amount of bonding. Passage of this plan would free up an additional $310 million to be
spent on education and other needs, instead of bond interest.

 I sincerely hope rejection of this report does not signify that the senate is more committed
to a tax increase than passing a highway plan this year.--Tim Huelskamp

   Senator Clark requests the record to show he concurs with the ``Explanation of Vote''
offered by Senator Huelskamp on HB 2071.

   Mr. President: I vote ``no'' on HB 2071. This highway program presented in HB 2071
may well be a good plan; however, I have not received sufficient information to vote in the
affirmative. I like the fact that the plan had no tax increases, but I am concerned about
other details not explained.--Pat Ranson

   Senator Harrington requests the record to show she concurs with the ``Explanation of
Vote'' offered by Senator Ranson on HB 2071.

ORIGINAL MOTION
 Having voted on the prevailing side, Senator Langworthy moved the Senate reconsider
its adverse action to adopt the conference committee report on HB 2071 and to not adopt
and a conference committee be appointed.

 The motion carried, and the President appointed Senators Langworthy, Kerr, Vidricksen,
Petty and Lee as third conferees on the part of the Senate to HB 2071.

CONFERENCE COMMITTEE REPORT
      Mr. President and Mr. Speaker: Your committee on conference on Senate
amendments to HB 2090, submits the following report:

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

      On page 4, following line 31, by inserting new sections 6, 7 and 8 as follows:

        ``New Sec.  6. (a) Any insurance company may convert to a Kansas insurance reciprocal
in accordance with a plan for the conversion of the insurance company into an insurance
reciprocal filed with and approved by the commissioner.

      (b) The commissioner may establish reasonable requirements and procedures for the
submission and approval of a conversion plan authorized by subsection (a).

      (c) No conversion plan shall be approved under this section unless such conversion plan
includes:

      (1) A provision for the conversion of existing stockholder or policyholder interests in
the insurance company into reciprocal or exchange subscriber interests in the insurance
reciprocal so that each subscriber's interest in the resulting Kansas insurance reciprocal shall
be fairly proportionate to such subscriber's interest in the insurance company;

      (2) a provision for the amendment of the insurance company's existing articles of
incorporation or other chartering document to a subscriber's agreement which complies
with the provisions of K.S.A. 40-1602 and 40-1603 and amendments thereto;

      (3) a copy of the proposed subscriber's agreement;

      (4) proof of the approval or adoption of the conversion plan by not less than 75% of the
shares or policyholders entitled to vote, represented either in person or by proxy, at a duly
called regular or special meeting of the stockholders or policyholders of the insurance
company at which a quorum, as determined by the bylaws or other chartering documents
of the insurance company, is present:

      (5) a transition plan for the change of governance of the insurance company from the
board of directors and officer structure of the insurance company to the insurance reciprocal
which shall be governed by article 16 of chapter 40 of the Kansas Statutes Annotated and
amendments thereto; and

      (6) any other information required by the commissioner.

      (d) The commissioner shall approve the conversion plan if the commissioner finds that
the proposed conversion will:

      (1) Not be detrimental to the interests of the stockholders or policyholders of the
insurance company;

      (2) not be detrimental to the interests of the state of Kansas; and

      (3) not render the insurer incapable of fulfilling the insurer's contractual obligations.

      (e) Upon approval of a conversion plan under this section, the commissioner shall issue
a new or amended certificate of authority, which shall be deemed to be the final act of
conversion at which time the insurance company shall concurrently become an insurance
reciprocal. The insurance reciprocal shall be deemed to be a continuation of the insurance
company and deemed to have been organized at the time the converted insurance company
was organized.

      (f) Each insurance reciprocal created pursuant to this section shall comply with all
provisions of K.S.A. 40-1612, and amendments thereto.

      (g) Any conversion of an insurance company to a reciprocal shall not be subject to the
provisions of K.S.A. 40-3304, and amendments thereto.

      (h) For the purposes of this section:

      (1) ``Commissioner'' means the commissioner of insurance.

      (2) ``Insurance company'' means a stock or mutual insurance company.

      (3) ``Insurance reciprocal'' means a reciprocal or interinsurance exchange established to
exchange reciprocal or interinsurance contracts with subscribers to provide indemnity
among themselves.

      New Sec.  7. Within 15 days of the date of the commissioner's approval or denial of the
conversion plan submitted in accordance with section 5, and amendments thereto, the
insurance company shall have the right to request a hearing by filing a written request with
the commissioner. The commissioner shall conduct the hearing in accordance with the
provisions of the Kansas administrative procedure act within 30 days after such request is
filed. Any action of the commissioner pursuant to this section is subject to review in
accordance with the provisions of the act for judicial review and civil enforcement of agency
actions.

      New Sec.  8. The provisions of sections 6 and 7, and amendments thereto, shall be
supplemental to article 16 of chapter 40 of the Kansas Statutes Annotated and amendments
thereto.'';

      And by renumbering the sections accordingly;

      On page 1, in the title, in line 12, by striking ``accident and health''; on line 13 after the
semicolon by inserting ``establishing a procedure for the conversion of a stock or mutual
insurance company into an insurance reciprocal;'';

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

Sandy Praeger

Paul Feleciano, Jr.

Robert Tomlinson

Don Myers

Eber Phelps

 Senator Steffes moved the Senate adopt the Conference Committee Report on HB 2090.

      On roll call, the vote was: Yeas 34, nays 6, present and passing 0; absent or not voting 0.

      Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Downey, Feleciano,
Gilstrap, Gooch, Goodwin, Hardenburger, Harrington, Hensley, Huelskamp, Jones, Jordan,
Kerr, Langworthy, Lee, Morris, Oleen, Petty, Praeger, Pugh, Salmans, Steffes, Steineger,
Stephens, Tyson, Umbarger, Vidricksen, Vratil.

      Nays: Corbin, Donovan, Emert, Lawrence, Ranson, Salisbury.

      The Conference Committee report was adopted.


EXPLANATION OF VOTE
 Mr. President: While I support the goal of HB 2090, which is intended to encourage
health care coverage for more working Kansans, I vote ``no'' because the bill would give tax
credits to those employers who have failed to provide work-force health care coverage in
the past and give no consideration to small business owners who have provided this benefit
all along.--Alicia Salisbury

   Senators Donovan and Lawrence request the record to show they concur with the
``Explanation of Vote'' offered by Senator Salisbury on HB 2090.

CONFERENCE COMMITTEE REPORT
      Mr. President and Mr. Speaker: Your committee on conference on Senate
amendments to HB 2140, submits the following report:

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

      On page 1, in line 25, before ``to'' by inserting ``, at least two of the three of whom shall
have experience in the valuation of real estate,'';

      On page 4, in line 10, by striking all after ``methods''; by striking all in line 11; in line 12,
by striking ``appraisers'';

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

John Vratil

Greta Goodwin

Michael R. O'Neal

Tim Carmody

Janice L. Pauls

 Senator Emert moved the Senate adopt the Conference Committee Report on HB 2140.

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

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

      The Conference Committee report was adopted.

CONFERENCE COMMITTEE REPORT
      Mr. President and Mr. Speaker: Your committee on conference on Senate
amendments to HB 2213, submits the following report:

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

      On page 27, in line 1, by striking ``this act'' and inserting ``K.S.A. 74-5361 et seq. and
amendments thereto'';

      On page 32, in line 31, by striking ``January'' and inserting ``July'';

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

Larry D. Salmans

Chris Steineger

Garry Boston

Phyllis Gilmore

Jerry Henry

 Senator Praeger moved the Senate adopt the Conference Committee Report on HB
2213.

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

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

      The Conference Committee report was adopted.

CONFERENCE COMMITTEE REPORT
      Mr. President and Mr. Speaker: Your committee on conference on Senate
amendments to HB 2362, submits the following report:

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

      On page 1, in line 18, by striking ``section'' and inserting ``act''; by striking all in line 43;

      By striking all of pages 2 through 8;

      On page 9, by striking all in lines 1 through 39;

      And by renumbering sections accordingly;

      On page 1, in the title, in line 10, by striking all after ``ACT''; in line 11, by striking all
before ``enacting''; in line 12, by striking all after the semicolon; in line 13, by striking all
before ``repealing'';

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

Larry D. Salmans

Chris Steineger

Garry Boston

Phyllis Gilmore

Jerry Henry

 Senator Praeger moved the Senate adopt the Conference Committee Report on HB
2362.

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

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

      The Conference Committee report was adopted.

REPORTS OF STANDING COMMITTEES
 Committee on Federal and State Affairs recommends HB 2427, as amended by Senate
Committee of the Whole, be amended on page 1, by striking all in lines 21 through 26 and
inserting:

      ``(a) Except as provided by subsection (b), the design or erection of any structure or
work by a person who owns the structure or work, upon such person's own premises for
such person's own use if the structure or work is not to be used for human habitation, is
not to serve as a place of employment, and is not to be open to the public for any purpose
whatsoever.'';

      Also on page 1, in line 27, following ``Persons'' by inserting ``designing or erecting or'';
and the bill be passed as amended.

FINAL ACTION ON BILLS AND CONCURRENT RESOLUTIONS
 On motion of Senator Emert an emergency was declared by a 2/3 constitutional majority,
and SB 317; SCR 1612; Sub HB 2322; HB 2538, 2548 were advanced to Final Action
and roll call.

   SB 317, An act concerning children; relating to paternity and duties upon determination
thereof; amending K.S.A. 1998 Supp. 38-1115 and repealing the existing section, was
considered on final action.

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

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

      The bill passed, as amended.

   SCR 1612, A CONCURRENT RESOLUTION urging the Secretary of the Kansas
Department of Health and Environment to review the effect of obesity in both adults and
children on costly health complications such as diabetes, hypertension, heart disease and
stroke, and health complications in children, and to report on current programs of the state
designed to improve awareness of the problem of obesity and its treatment and to make
recommendations to the Legislature for additions and improvements to the state programs
prior to the convening of the 2000 session of the Legislature, was considered on final action.

      On roll call, the vote was: Yeas 36, nays 3, present and passing 1; 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, Lee, Morris, Oleen, Petty, Praeger, Pugh, Ranson, Salisbury, Salmans, Steffes,
Steineger, Stephens, Tyson, Umbarger, Vidricksen, Vratil.

      Nays: Bleeker, Huelskamp, Lawrence.

      Present and passing: Hensley.

      The resolution was adopted.

   Sub HB 2322, An act relating to corporations; concerning public utilities and common
carriers; amending K.S.A. 66-301 and repealing the existing section; also repealing K.S.A.
66- 1213, was considered on final action.

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

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

      The substitute bill passed, as amended.

   HB 2538, An act concerning the sale of medicines and drugs through vending machines;
amending K.S.A. 65-650 and repealing the existing section, was considered on final action.

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

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

      The bill passed, as amended.

   HB 2548, An act concerning the secretary of social and rehabilitation services; relating
to the transfer and conveyance of certain real property of the department of social and
rehabilitation services; transfer of the property of the former Winfield state hospital and
training center to the department of corrections and the Kansas commission on veterans
affairs; conveyance of certain real property in Wyandotte county; concerning Topeka state
hospital; amending K.S.A. 75-3765 and 76-12a01 and repealing the existing sections; also
repealing K.S.A. 76-185, was considered on final action.

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

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

      The bill passed, as amended.

   On motion of Senator Emert the Senate adjourned until 9:00 a.m., Thursday, April 8,
1999.

HELEN A. MORELAND, Journal Clerk.

PAT SAVILLE, Secretary of Senate.