May 1, 1999

Journal of the Senate

SIXTY-SIXTH DAY
______
Senate Chamber, Topeka, Kansas
Saturday, May 1, 1999--10:00 a.m.
 The Senate was called to order by President Dick Bond.

 The roll was called with thirty-nine senators present.

 Senator Hardenburger was excused.

 Invocation by Chaplain Fred S. Hollomon:

               Heavenly Father,

             At this time every year I have requests to pray for a speedy end to the
            session.

                 A year ago today I prayed, ``Help them, O God, to do what has to be done,
            to do it well, and to do it at least in time to get to church on Sunday.''

                 Three years ago I prayed, ``We've often thought it would be great

                                                                                                    Since time immemorial,

                                                                                                    To let the editors wrap it up,

                                                                                                    And we'd write the editorials.''

                 Four years ago I prayed, ``Some will say we quit too soon,

                                                                                                  But from others we will hear

                                                                                                  How much it costs taxpayers

                                                                                                  The extra days we're here.''

                 I would like for you to consider these requests again, O God. Only You
            know when it's best to start and end anything, so give us the wisdom to
            conclude this session at the appropriate time.

                                                                                    I pray in the Name of Christ,

                                                                                        AMEN

MESSAGE FROM THE HOUSE
 Announcing, the House adopts the conference committee report on SB 171.
 The House adopts the conference committee report on SB 205.
 The House adopts the conference committee report on SB 240.
ORIGINAL MOTION
 Senator Emert moved that subsection 4(k) of the Joint Rules of the Senate and House
of Representatives be suspended for the purpose of considering the following bills: SB 171,
240.
CONFERENCE COMMITTEE REPORT
 Mr. President and Mr. Speaker: Your committee on conference on House
amendments to SB 171, 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 4, in line 30, by striking ``and''; in line 31, after ``Topeka'', by inserting ``, Charter
Wichita Behavior Health System, L.L.C. and Salvation Army/Koch Center Youth Services'';
in line 38, by striking ``$3,787'' and inserting ``$3,770''; in line 39, by striking ``, $3,837'' and
inserting ``and $3,820''; also in line 39, by striking ``, and $3,887 in''; in line 40, by striking
all before ``and'';

      On page 7, in line 30, by striking ``and''; also in line 30, after ``Topeka'', by inserting ``,
Charter Wichita Behavior Health System, L.L.C. and Salvation Army/Koch Center Youth
Services'';

      On page 10, in line 12, by striking ``and''; in line 13, after ``Topeka'', by inserting ``, Charter
Wichita Behavior Health System, L.L.C. and Salvation Army/Koch Center Youth Services'';

      On page 13, by striking all of lines 19 through 39;

      By renumbering sections 18 through 20 as sections 17 through 19, respectively;

      In the title, in line 23, by striking all after the semicolon; by striking all of line 24; in line
25, by striking all before ``amending'';

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

Cindy Empson

Richard R. Reinhardt
Barbara Lawrence

Audrey Langworthy

Christine Downey
 Senator Lawrence moved the Senate adopt the Conference Committee Report on
SB  171.
      On roll call, the vote was: Yeas 36, nays 3, present and passing 0; absent or not voting 1.
      Yeas: Barone, Becker, Biggs, Bleeker, Bond, Clark, Corbin, Donovan, Downey, Emert,
Feleciano, Gilstrap, Gooch, Goodwin, Harrington, Hensley, Huelskamp, Jones, Jordan,
Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Praeger, Pugh, Salisbury, Salmans,
Steffes, Steineger, Stephens, Tyson, Umbarger, Vidricksen, Vratil.
      Nays: Brownlee, Kerr, Ranson.
      Absent or not voting: Hardenburger.
      The Conference Committee report was adopted.

EXPLANATION OF VOTE
 Mr. President: I vote no on SB 171. We have failed to be responsible fiscally. Without
the tobacco money in FY 2001, we are in the hole by $62 million. We are presuming upon
the future by committing $50 in the BSAPP in FY 2001 when we don't know that we will
have the money to keep this promise.--Karin Brownlee
   Mr. President: I vote for SB 171, because I am a supporter of education. However,
the cost of this bill could place the state of Kansas in a serious fiscal condition if the economy
does turn south. In that case, we may be required to re-examine our spending decisions
included in this bill.--Tim Huelskamp
   Mr. President: We have traditionally approved annual budgets. The Senate has spoken
on more than one occasion to indicate the state would be well served to move to biennial
budgeting. The House has refused to even consider such a proposal. Now, SB 171
Conference Committee Report contains two years of funding for the largest single
expenditure in state government, and has base state aid per pupil. We should not enact
biennial budgeting in a haphazard, unplanned fashion. Therefore I vote no on SB 171.--
Dave Kerr
   Mr. President: I strongly support SB 171 because it does something which we have
not done in the past. The additional $50 of base state aid per pupil for fiscal year 2001 will
enable school districts to engage in some long-range planning that they have not been able
to do before. Although I construe that additional $50 as a projection and not an absolute
commitment on the part of this legislature, it gives our school districts an additional tool to
plan and manage taxpayers money. Long range planning is something the legislature has
encouraged school districts to engage in and I believe we are making that possible through
SB 171.
 For those reasons, I strongly support SB 171.--John Vratil

   Senators Clark, Harrington, Jordan, Lawrence, Oleen, Salisbury and Tyson request the
record to show they concur with the ``Explanation of Vote'' offered by Senator Vratil on
SB  171.

CONFERENCE COMMITTEE REPORT
 Mr. President and Mr. Speaker: Your committee on conference on House
amendments to SB 240, 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 1, in line 20, by striking ``whose''; by striking all in lines 21 through 25; in line
26, by striking all before ``the'' where it appears for the third time and inserting ``who shall
serve at the pleasure of'';

      By striking all on page 2 and inserting the following:

      ``New Sec.  2. The office of the consumer credit commissioner created by K.S.A. 16-
403 and amendments thereto is hereby abolished. Except as otherwise provided in this act,
all of the powers, duties and functions of the existing consumer credit commissioner are
hereby transferred to and conferred and imposed upon the state bank commissioner
established by K.S.A. 75-1304 and amendments thereto.

      New Sec.  3. (a)  (1) Except as provided in subsection (2), the state bank commissioner
shall be the successor in every way to the powers, duties and functions of the consumer
credit commissioner in which the same were vested prior to the effective date of this act.
Every act performed in the exercise of such powers, duties and functions by or under the
authority of the state bank commissioner shall be deemed to have the same force and effect
as if performed by the consumer credit commissioner in which such powers, duties and
functions were vested prior to the effective date of this act.

      (2) The deputy commissioner for consumer and mortgage lending shall be the successor
in every way to those powers, duties and functions of the consumer credit commissioner
concerning the administration of the uniform consumer credit code (K.S.A. 16a-1-101 et
seq. and amendments thereto) in which the same were vested prior to the effective date of
this act. Every act performed in the exercise of such powers, duties and functions by or
under the authority of the deputy commissioner for consumer and mortgage lending shall
be deemed to have the same force and effect as if performed by the consumer credit
commissioner in which such powers, duties and functions were vested prior to the effective
date of this act.

      (b)  (1) Except as provided in subsection (2), whenever the consumer credit
commissioner, or words of like effect, are referred to or designated by a statute, contract
or other document, such reference or designation shall be deemed to apply to the state bank
commissioner.

      (2) Whenever the consumer credit commissioner, or words of like effect, are referred
to or designated by a statute, contract or other document concerning the administration of
the uniform consumer credit code (K.S.A. 16a-1-101 et seq. and amendments thereto) such
reference or designation shall be deemed to apply to the deputy commissioner for consumer
and mortgage lending.

      (c)  (1) Except as provided in subsection (2), all orders and directives of the consumer
credit commissioner in existence on the effective date of this act shall continue to be effective
and shall be deemed to be orders and directives of the state bank commissioner until revised,
amended or nullified pursuant to law.

      (2) All orders and directives of the consumer credit commissioner concerning the
administration of the uniform consumer credit code (K.S.A. 16a-1-101 et seq. and
amendments thereto) in existence on the effective date of this act shall continue to be
effective and shall be deemed to be orders and directives of the deputy commissioner for
consumer and mortgage lending until revised, amended or nullified pursuant to law.

      (d)  (1) Except as provided in subsection (2), all rules and regulations of the consumer
credit commissioner, in existence on the effective date of this act shall continue to be
effective and shall be deemed to be duly adopted rules and regulations of the state bank
commissioner until revised, amended, revoked or nullified pursuant to law.

      (2) All rules and regulations of the consumer credit commissioner concerning the
administration of the uniform consumer credit code (K.S.A. 16a-1-101 et seq. and
amendments thereto) in existence on the effective date of this act shall continue to be
effective and shall be deemed to be duly adopted rules and regulations of the deputy
commissioner for consumer and mortgage lending until revised, amended, revoked or
nullified pursuant to law.

      (e) The state bank commissioner shall succeed to whatever right, title or interest the
consumer credit commissioner has acquired in any real property in this state, and the state
bank commissioner shall hold the same for and in the name of the state of Kansas.

      (f)  (1) Except as provided in subsection (2), on and after the effective date of this act,
whenever any statute, contract or other document concerns the power or authority of the
consumer credit commissioner, the state bank commissioner shall succeed to such power
or authority.

      (2) On and after the effective date of this act, whenever any statute, contract or other
document concerns the power or authority of the consumer credit commissioner concerning
the administration of the uniform consumer credit code (K.S.A. 16a-1-101 et seq. and
amendments thereto) the deputy commissioner for consumer and mortgage lending shall
succeed to such power or authority.

      New Sec.  4. (a) When any conflict arises as to the disposition of any property, power,
duty or function or the unexpended balance of any appropriation as a result of any abolition,
transfer, attachment or change made by or under authority of this act, such conflict shall
be resolved by the governor, whose decision shall be final.

      (b) The state bank commissioner shall succeed to all property, property rights and
records which were used for or pertain to the performance of the powers, duties and
functions transferred to the bank commissioner. The deputy commissioner for consumer
and mortgage lending shall succeed to all property, property rights and records which were
used for or pertain to the performance of the powers, duties and functions concerning the
administration of the uniform consumer credit code (K.S.A. 16a-1-101 et seq. and
amendments thereto) transferred to the deputy commissioner for consumer and mortgage
lending. Any conflict as to the proper disposition of property or records arising under this
section, and resulting from the transfer, attachment or all or part of the powers, duties and
functions of the consumer credit commissioner, shall be determined by the governor, whose
decision shall be final.

      New Sec.  5. (a) No suit, action or other proceeding, judicial or administrative, lawfully
commenced, or which could have been commenced, by or against any state agency or
program mentioned in this act, or by or against any officer of the state in such officer's
official capacity or in relation to the discharge of such officer's official duties, shall abate by
reason of this act. The court may allow any such suit, action or other proceeding to be
maintained by or against the successor of any such state agency or any officer affected.

      (b) No criminal action commenced or which could have been commenced by the state
shall abate by the taking effect of this act.

      New Sec.  6. (a) On the effective date of this act, the balances of all funds appropriated
or reappropriated for the consumer credit commissioner are hereby transferred to the state
bank commissioner. The director of accounts and reports shall transfer all moneys in the
consumer credit fee fund to the bank commissioner fee fund. On the effective date of this
act, all liabilities of the consumer credit fee fund existing prior to the effective date of this
act are imposed on the bank commissioner fee fund. The consumer credit fee fund is hereby
abolished.

      (b) On the effective date of this act, the liability for all accrued compensation or salaries
of officers and employees who, immediately prior to such date, were engaged in the
performance of powers, duties or functions of any state agency or officer transferred by this
act, or which becomes a part of the office of the state bank commissioner or the powers,
duties and functions of which are transferred to the bank commissioner, shall be assumed
and paid by the state bank commissioner.

      New Sec.  7. On the effective date of this act, officers and employees who, immediately
prior to such date, were engaged in the performance of powers, duties or functions involved
in the administration of any law administered by the consumer credit commissioner, and
who, in the opinion of the state bank commissioner, are necessary to perform the powers,
duties and functions involved in the administration of any law administered by the consumer
credit commissioner, shall be transferred to, and shall become officers and employees of
the bank commissioner. Any such officer or employee shall retain all retirement benefits
and all rights of civil service which had accrued to or vested in such officer or employee
prior to the effective date of this act. The service of each such officer and employee so
transferred shall be deemed to have been continuous.

      Sec.  8. K.S.A. 1998 Supp. 16a-1-301, as amended by section 8 of 1999 Substitute for
Senate Bill No. 301, is hereby amended to read as follows: 16a-1-301. In addition to
definitions appearing in subsequent articles, in K.S.A. 16a-1-101 through 16a-9-102, and
amendments thereto:

      (1) ``Actuarial method'' means the method of allocating payments made on a debt
between the principal and the finance charge pursuant to which a payment is applied,
assuming no delinquency charges or other additional charges are then due, first to the
accumulated finance charge and then to the unpaid principal balance. When a finance
charge is calculated in accordance with the actuarial method, the contract rate is applied to
the unpaid principal balance for the number of days the principal balance is unpaid. At the
end of each computational period, or fractional computational period, the unpaid principal
balance is increased by the amount of the finance charge earned during that period and is
decreased by the total payment, if any, made during the period after the deduction of any
delinquency charges or other additional charges due during the period.

      (2) ``Administrator'' means the consumer credit deputy commissioner of the consumer
and mortgage lending division appointed by the bank commissioner pursuant to K.S.A. 16-
403 75-3135, and amendments thereto.

      (3) ``Agreement'' means the bargain of the parties in fact as found in their language or
by implication from other circumstances including course of dealing or usage of trade or
course of performance.

      (4) ``Amount financed'' means the net amount of credit provided to the consumer or
on the consumer's behalf. The amount financed shall be calculated as provided in rules and
regulations adopted by the administrator pursuant to K.S.A. 16a-6-117, and amendments
thereto.

      (5) ``Annual percentage rate'' means the finance charge expressed as a yearly rate, as
calculated in accordance with the actuarial method. The annual percentage rate shall be
calculated as provided in rules and regulations adopted by the administrator pursuant to
K.S.A. 16a-6-117, and amendments thereto.

      (6) ``Appraised value'' means, with respect to any real estate at any time, the greater of:

      (a) The total appraised value of the real estate, as reflected in the most recent records
of the tax assessor of the county in which the real estate is located; or

      (b) the fair market value of the real estate, as reflected in a written appraisal of the real
estate performed by a Kansas licensed or certified appraiser within the past 12 months.

      (7) ``Billing cycle'' means the time interval between periodic billing statement dates.

      (8) ``Cash price'' of goods, services, or an interest in land means the price at which they
are offered for sale by the seller to cash buyers in the ordinary course of business and may
include (a) the cash price of accessories or services related to the sale, such as delivery,
installation, alterations, modifications, and improvements, and (b) taxes to the extent
imposed on a cash sale of the goods, services, or interest in land. The cash price stated by
the seller to the buyer in a disclosure statement is presumed to be the cash price.

      (9) ``Closed end credit'' means a consumer loan or a consumer credit sale which is not
incurred pursuant to open end credit.

      (10) ``Closing costs'' with respect to a debt secured by an interest in land includes:

      (a) The actual fees paid a public official or agency of the state or federal government,
for filing, recording or releasing any instrument relating to the debt; and

      (b) bona fide and reasonable expenses incurred by the lender in connection with the
making, closing, disbursing, extending, readjusting or renewing the debt which are payable
to third parties not related to the lender, except that reasonable fees for an appraisal made
by the lender or related party are permissible.

      (11) ``Code mortgage rate'' means the greater of:

      (a) 12%; or

      (b) the sum of:

      (i) The yield on 30-year fixed rate conventional home mortgage loans committed for
delivery within 31 to 90 days accepted under the federal home loan mortgage corporation's
or any successor's daily offerings for sale on the last day on which commitments for such
mortgages were received in the previous month; and

      (ii) 5%.

      If the reference rate referred to in subparagraph (i) of paragraph (b) is discontinued,
becomes impractical to use, or is otherwise not readily ascertainable for any reason, the
administrator may designate a comparable replacement reference rate and, upon publishing
notice of the same, such replacement reference rate shall become the reference rate referred
to in subparagraph (i) of paragraph (b). The secretary of state shall publish notice of the
code mortgage rate not later than the second issue of the Kansas register published each
month.

      (12) ``Conspicuous'' means a term or clause is conspicuous when it is so written that a
reasonable person against whom it is to operate ought to have noticed it. Whether a term
or clause is conspicuous or not is for decision by the trier of fact.

      (13) ``Consumer'' means the buyer, lessee, or debtor to whom credit is granted in a
consumer credit transaction.

      (14) ``Consumer credit sale'':

      (a) Except as provided in paragraph (b), a ``consumer credit sale'' is a sale of goods,
services, or an interest in land in which:

      (i) Credit is granted either by a seller who regularly engages as a seller in credit
transactions of the same kind or pursuant to a credit card other than a lender credit card,

      (ii) the buyer is a person other than an organization,

      (iii) the goods, services, or interest in land are purchased primarily for a personal, family
or household purpose,

      (iv) either the debt is by written agreement payable in more than four installments or
a finance charge is made, and

      (v) with respect to a sale of goods or services, the amount financed does not exceed
$25,000.

      (b) A ``consumer credit sale'' does not include:

      (i) A sale in which the seller allows the buyer to purchase goods or services pursuant to
a lender credit card; or

      (ii) a sale of an interest in land, unless the parties agree in writing to make the transaction
subject to the uniform consumer credit code.

      (15) ``Consumer credit transaction'' means a consumer credit sale, consumer lease, or
consumer loan or a modification thereof including a refinancing, consolidation, or deferral.

      (16) ``Consumer lease'' means a lease of goods:

      (a) Which a lessor regularly engaged in the business of leasing makes to a person, other
than an organization, who takes under the lease primarily for a personal, family or household
purpose;

      (b) in which the amount payable under the lease does not exceed $25,000;

      (c) which is for a term exceeding four months; and

      (d) which is not made pursuant to a lender credit card.

      (17) ``Consumer loan'':

      (a) Except as provided in paragraph (b), a ``consumer loan'' is a loan made by a person
regularly engaged in the business of making loans in which:

      (i) The debtor is a person other than an organization;

      (ii) the debt is incurred primarily for a personal, family or household purpose;

      (iii) either the debt is payable by written agreement in more than four installments or
a finance charge is made; and

      (iv) either the amount financed does not exceed $25,000 or the debt is secured by an
interest in land.

      (b) Unless the loan is made subject to the uniform consumer credit code by written
agreement, a ``consumer loan'' does not include:

      (i) A loan secured by a first mortgage unless:

      (A) The loan-to-value ratio of the loan at the time when made exceeds 100%; or

      (B) in the case of subsection (1) of section 3 and amendments thereto, the annual
percentage rate of the loan exceeds the code mortgage rate; or

      (ii) a loan made by a qualified plan, as defined in section 401 of the internal revenue
code, to an individual participant in such plan or to a member of the family of such individual
participant.

      (18) ``Credit'' means the right granted by a creditor to a debtor to defer payment of
debt or to incur debt and defer its payment.

      (19) ``Credit card'' means any card, plate or other single credit device that may be used
from time to time to obtain credit. Since this involves the possibility of repeated use of a
single device, checks and similar instruments that can be used only once to obtain a single
credit extension are not credit cards.

      (20) ``Creditor'' means a person who regularly extends credit in a consumer credit
transaction which is payable by a written agreement in more than four installments or for
which the payment of a finance charge is or may be required and is the person to whom
the debt arising from the consumer credit transaction is initially payable on the face of the
evidence of indebtedness or, if there is no such evidence of indebtedness, by written
agreement. In the case of credit extended pursuant to a credit card, the creditor is the card
issuer and not another person honoring the credit card.

      (21) ``Earnings'' means compensation paid or payable to an individual or for such
individual's account for personal services rendered or to be rendered by such individual,
whether denominated as wages, salary, commission, bonus, or otherwise, and includes
periodic payments pursuant to a pension, retirement, or disability program.

      (22) ``Finance charge'' means all charges payable directly or indirectly by the consumer
and imposed directly or indirectly by the creditor as an incident to or as a condition of the
extension of credit. The finance charge shall be calculated as provided in rules and
regulations adopted by the administrator pursuant to K.S.A. 16a-6-117, and amendments
thereto.

      (23) ``First mortgage'' means a first priority mortgage lien or similar real property
security interest.

      (24) ``Goods'' includes goods not in existence at the time the transaction is entered into
and merchandise certificates, but excludes money, chattel paper, documents of title, and
instruments.

      (25) Except as otherwise provided, ``lender'' includes an assignee of the lender's right
to payment but use of the term does not in itself impose on an assignee any obligation of
the lender with respect to events occurring before the assignment.

      (26) ``Lender credit card'' means a credit card issued by a supervised lender.

      (27) ``Loan'':

      (a) Except as provided in paragraph (b), a ``loan'' includes:

      (i) The creation of debt by the lender's payment of or agreement to pay money to the
debtor or to a third party for the account of the debtor;

      (ii) the creation of debt either pursuant to a lender credit card or by a cash advance to
a debtor pursuant to a credit card other than a lender credit card;

      (iii) the creation of debt by a credit to an account with the lender upon which the debtor
is entitled to draw immediately; and

      (iv) the forbearance of debt arising from a loan.

      (b) A ``loan'' does not include the payment or agreement to pay money to a third party
for the account of a debtor if the debt of the debtor arises from a sale or lease and results
from use of either a credit card issued by a person primarily in the business of selling or
leasing goods or services or any other credit card which may be used for the purchase of
goods or services and which is not a lender credit card.

      (28) ``Loan-to-value ratio'', at any time for any loan secured by an interest in real estate,
means a fraction expressed as a percentage:

      (a) The numerator of which is the aggregate unpaid principal balance of all loans secured
by a first mortgage or a second mortgage encumbering the real estate at such time; and

      (b) the denominator of which is the appraised value of the real estate.

      (29) ``Merchandise certificate'' means a writing issued by a seller not redeemable in cash
and usable in its face amount in lieu of cash in exchange for goods or services.

      (30) ``Official fees'' means:

      (a) Fees and charges prescribed by law which actually are or will be paid to public
officials for determining the existence of or for perfecting, releasing, or satisfying a security
interest related to a consumer credit sale, consumer lease, or consumer loan; or

      (b) premiums payable for insurance in lieu of perfecting a security interest otherwise
required by the creditor in connection with the sale, lease, or loan, if the premium does not
exceed the fees and charges described in paragraph (a) which would otherwise be payable.

      (31) ``Open end credit'' means an arrangement pursuant to which:

      (a) A creditor may permit a consumer, from time to time, to purchase goods or services
on credit from the creditor or pursuant to a credit card, or to obtain loans from the creditor
or pursuant to a credit card;

      (b) the unpaid balance of amounts financed and the finance and other appropriate
charges are debited to an account;

      (c) the finance charge, if made, is computed on the outstanding unpaid balances of the
consumer's account from time to time; and

      (d) the consumer has the privilege of paying the balances in installments.

      (32) ``Organization'' means a corporation, limited liability company, government or
governmental subdivision or agency, trust, estate, partnership, cooperative, or association.

      (33) ``Person'' includes a natural person or an individual, and an organization.

      (34)  (a) ``Person related to'' with respect to an individual means (i) the spouse of the
individual, (ii) a brother, brother-in-law, sister, sister-in-law of the individual, (iii) an ancestor
or lineal descendant of the individual or the individual's spouse, and (iv) any other relative,
by blood, adoption or marriage, of the individual or such individual's spouse who shares the
same home with the individual.

      (b) ``Person related to'' with respect to an organization means (i) a person directly or
indirectly controlling, controlled by or under common control with the organization, (ii) an
officer or director of the organization or a person performing similar functions with respect
to the organization or to a person related to the organization, (iii) the spouse of a person
related to the organization, and (iv) a relative by blood, adoption or marriage of a person
related to the organization who shares the same home with such person.

      (35) ``Prepaid finance charge'' means any finance charge paid separately in cash or by
check before or at consummation of a transaction, or withheld from the proceeds of the
credit at any time. Prepaid finance charges shall be calculated as provided in rules and
regulations adopted by the administrator pursuant to K.S.A. 16a-6-117, and amendments
thereto.

      (36) ``Presumed'' or ``presumption'' means that the trier of fact must find the existence
of the fact presumed unless and until evidence is introduced which would support a finding
of its nonexistence.

      (37) ``Principal'' means the total of the amount financed and the prepaid finance charges,
except that prepaid finance charges are not added to the amount financed to the extent such
prepaid finance charges are paid separately in cash or by check by the consumer. The
administrator may adopt rules and regulations regarding the determination or calculation
of the principal or the principal balance pursuant to K.S.A. 16a-6-117, and amendments
thereto.

      (38) ``Sale of goods'' includes any agreement in the form of a bailment or lease of goods
if the bailee or lessee agrees to pay as compensation for use a sum substantially equivalent
to or in excess of the aggregate value of the goods involved and it is agreed that the bailee
or lessee will become, or for no other or a nominal consideration has the option to become,
the owner of the goods upon full compliance with such bailee's or lessee's obligations under
the agreements.

      (39) ``Sale of an interest in land'' includes a lease in which the lessee has an option to
purchase the interest and all or a substantial part of the rental or other payments previously
made by the lessee are applied to the purchase price.

      (40) ``Sale of services'' means furnishing or agreeing to furnish services and includes
making arrangements to have services furnished by another.

      (41) ``Second mortgage'' means a second or other subordinate priority mortgage lien or
similar real property security interest.

      (42) ``Seller'': Except as otherwise provided, ``seller'' includes an assignee of the seller's
right to payment but use of the term does not in itself impose on an assignee any obligation
of the seller with respect to events occurring before the assignment.

      (43) ``Services'' includes (a) work, labor, and other personal services, (b) privileges with
respect to transportation, hotel and restaurant accommodations, education, entertainment,
recreation, physical culture, hospital accommodations, funerals, cemetery accommodations,
and the like, and (c) insurance.

      (44) ``Supervised financial organization'' means a person, other than an insurance
company or other organization primarily engaged in an insurance business:

      (a) Organized, chartered, or holding an authorization certificate under the laws of any
state or of the United States which authorize the person to make loans and to receive
deposits, including a savings, share, certificate or deposit account; and

      (b) subject to supervision by an official or agency of such state or of the United States.

      (45) ``Supervised lender'' means a person authorized to make or take assignments of
supervised loans, either under a license issued by the administrator (K.S.A. 16a-2-301 and
amendments thereto) or as a supervised financial organization (subsection (44) of K.S.A.
16a-1-301 and amendments thereto).

      (46) ``Supervised loan'' means a consumer loan, including a loan made pursuant to open
end credit, with respect to which the annual percentage rate exceeds 12%.

      (47) ``Written agreement'' means an agreement such as a promissory note, contract or
lease that is evidence of or relates to the indebtedness. A letter that merely confirms an oral
agreement does not constitute a written agreement for purposes of this subsection unless
signed by the person against whom enforcement is sought.

      (48) ``Written administrative interpretation'' means any written communication from
the consumer credit commissioner which is the official interpretation as so stated in said
written communication by the consumer credit commissioner of the Kansas uniform
consumer credit code and rules and regulations pertaining thereto.

      Sec.  9. K.S.A. 16a-2-302, as amended by section 12 of 1999 Substitute for Senate Bill
No. 301, is hereby amended to read as follows: 16a-2-302. (1)  (a) The administrator shall
receive and act on all applications for licenses to make supervised loans under this act.
Applications shall be filed in the manner prescribed by the administrator and shall contain
the information the administrator may require by rule and regulation to make an evaluation
of the financial responsibility, character and fitness of the applicant.

      (b) Submitted with each application shall be an application fee. Application and license
fees shall be in such amounts as are established pursuant to subsection (5) of K.S.A. 16a-6-
104, and amendments thereto. The license year shall be the calendar year. Each license
shall remain in force until surrendered, suspended or revoked.

      (c) The administrator shall remit all moneys received under K.S.A. 16a-1-101 to 16a-6-
414, inclusive, and amendments thereto, to the state treasurer at least monthly. Upon receipt
of any such remittance the state treasurer shall deposit the entire amount thereof in the
state treasury. Of each deposit 20% shall be credited to the state general fund and the
balance shall be credited to the consumer credit bank commissioner fee fund. All
expenditures from such fund shall be made in accordance with appropriation acts upon
warrants of the director of accounts and reports issued pursuant to vouchers approved by
the administrator or by a person or persons designated by the administrator.

      The 20% credit to the state general fund required by this subsection (c) is to reimburse
the state general fund for accounting, auditing, budgeting, legal, payroll, personnel and
purchasing services, and any and all other state governmental services, which are performed
on behalf of the administrator by other state agencies which receive appropriations from
the state general fund to provide such services. Nothing in this subsection (c) shall be
deemed to authorize remittances to be made less frequently than is authorized under K.S.A.
75-4215, and amendments thereto.

      (d) Every licensee shall, on or before the first day of January, pay to the administrator
the license fee prescribed under this subsection (1) for each license held for the succeeding
license year. Failure to pay the license fee within the time prescribed shall automatically
revoke the license.

      (2) No license shall be issued unless the administrator, upon investigation, finds that
the financial responsibility, character and fitness of the applicant, and of the members
thereof if the applicant is a copartnership or association and of the officers and directors
thereof, if the applicant is a corporation, are such as to warrant belief that the business will
be operated honestly and fairly within the purposes of this act. An applicant meets the
minimum standard of financial responsibility for engaging in the business of making
supervised loans, under subsection (1) of K.S.A. 16a-2-301, and amendments thereto, only
if the applicant has filed with the administrator a proper surety bond of at least $100,000
which has been approved by the administrator. The required surety bond may not be
canceled by the licensee without providing the administrator at least 30 days' prior written
notice and must provide within its terms that the bond shall not expire for two years after
the date of the surrender, revocation or expiration of the subject license, whichever shall
first occur.

      (3) The administrator may deny any application or renewal for a supervised loan license
if the administrator finds:

      (a) There is a refusal to furnish information required by the administrator within a
reasonable time as fixed by the administrator; or

      (b) any of the factors stated in K.S.A. 16a-2-303, and amendments thereto, as grounds
for denial, revocation or suspension of a license.

      (4) Upon written request the applicant is entitled to a hearing on the question of license
qualifications if: (a) The administrator has notified the applicant in writing that the
application has been denied; or (b) the administrator has not issued a license within 60 days
after the application for the license was filed. A request for a hearing may not be made
more than 15 days after the administrator has mailed a writing to the applicant notifying
the applicant that the application has been denied and stating in substance the
administrator's findings supporting denial of the application.

      (5) The administrator shall adopt rules and regulations regarding whether a licensee
shall be required to obtain a single license for each place of business or whether a licensee
may obtain a master license for all of its places of business, and in so doing the administrator
may differentiate between licensees located in this state and licensees located elsewhere.
Each license shall remain in full force and effect until surrendered, suspended or revoked.

      (6) No licensee shall change the location of any place of business without giving the
administrator at least 15 days prior written notice.

      (7) A licensee may conduct the business of making supervised loans only at or from any
place of business for which the licensee holds a license and not under any other name than
that in the license. Loans made pursuant to a lender credit card do not violate this subsection.

      Sec.  10. K.S.A. 75-1308 is hereby amended to read as follows: 75-1308. The
commissioner shall keep a record of all fees collected by him or her the commissioner,
together with a record of all expenses incurred in making the examinations of all banks and
trust companies. The the administration of programs for the regulation of banks and trust
companies and in the administration of programs for the regulation of consumer and
mortgage lending. The bank commissioner shall remit all moneys received by or for him or
her the commissioner from such fees to the state treasurer at least monthly. Upon receipt
of each such remittance, the state treasurer shall deposit the entire amount thereof in the
state treasury. Twenty percent (20%) of each such deposit shall be credited to the state
general fund and the balance shall be credited to the bank commissioner fee fund. All
expenditures from the bank commissioner fee fund shall be made in accordance with
appropriation acts upon warrants of the director of accounts and reports issued pursuant to
vouchers approved by the bank commissioner or by a person or persons designated by him
or her the commissioner.

      Sec.  11. K.S.A. 75-3135 is hereby amended to read as follows: 75-3135. The bank
commissioner shall receive an annual salary to be fixed by the governor with the approval
of the state finance council. The bank commissioner is hereby authorized to appoint a two
deputy commissioner commissioners who shall be in the unclassified service under the
Kansas civil service act and shall receive an annual salary fixed by the bank commissioner.
The deputy commissioner of the banking division shall supervise all banks and trust
companies as directed by the commissioner and shall perform such other duties as may be
required by the commissioner. The deputy commissioner of the consumer and mortgage
lending division shall supervise all consumer and mortgage lending functions as directed by
the commissioner and shall perform such other duties as may be required by the
commissioner. If the office of the commissioner is vacant or if the commissioner is absent
or unable to act, the deputy commissioner of the banking division shall be the acting
commissioner. The deputy commissioner of the banking division shall have at least five
years' experience as a state bank officer or five years' experience as a state or federal deposit
insurance corporation bank examiner regulator. The deputy commissioner of consumer and
mortgage lending shall have at least five years' experience in consumer or mortgage lending,
regulatory, legal or related experience. The bank commissioner is also authorized to appoint
or contract for, in accordance with the civil service law, such special assistants and other
employees as are necessary to properly discharge the duties of the office.
 
Sec.  12. K.S.A. 16-403, 16-601, 16-601a, 16-601b, 16-601c, 16-601d, 16-601e, 16-601f,
16-601g, 16-601h, 16-601i, 16-601j, 16-601k, 16-601l, 16-601m, 16-601n, 16-601o, 16-601q,
16-601r, 16-601s, 16-602, 16-603, 16-604, 16-605, 16-606, 16-607, 16-608, 16-609, 16-610,
16-611, 16-612, 16-613, 16-614, 16-616, 16-618, 16-619, 16-620, 16-621, 16-622, 16-623,
16-624, 16-625, 16-626, 16-627, 16-628, 16-629, 16-630, 16-631, 16-632, 16-633, 16-634,
16-635, 16-636, 16-637, 16-638, 16-639, 16-640, 16a-2-302, as amended by section 12 of
1999 Substitute for Senate Bill No. 301, 75-1304, 75-1308 and 75-3135 and K.S.A. 1998
Supp. 16a-1-301, as amended by section 8 of 1999 Substitute for Senate Bill No. 301, are
hereby repealed.

 Sec.  13. This act shall take effect and be in force from and after its publication in the
statute book.'';

      In the title, in line 15, by striking all after the semicolon and inserting ``transferring the
duties of the consumer credit commissioner to the state bank commissioner; abolishing the
office of the consumer credit commissioner; amending K.S.A. 16a-2-302, as amended by
section 12 of 1999 Substitute for Senate Bill No. 301, 75-1304, 75-1308 and 75-3135 and
K.S.A. 1998 Supp. 16a-1-301, as amended by section 8 of 1999 Substitute for Senate Bill
No. 301, and repealing the existing sections; also repealing K.S.A. 16-403, 16-601, 16-601a,
16-601b, 16-601c, 16-601d, 16-601e, 16-601f, 16-601g, 16-601h, 16-601i, 16-601j, 16-601k,
16-601l, 16-601m, 16-601n, 16-601o, 16-601q, 16-601r, 16-601s, 16-602, 16-603, 16-604,
16-605, 16-606, 16-607, 16-608, 16-609, 16-610, 16-611, 16-612, 16-613, 16-614, 16-616,
16-618, 16-619, 16-620, 16-621, 16-622, 16-623, 16-624, 16-625, 16-626, 16-627, 16-628,
16-629, 16-630, 16-631, 16-632, 16-633, 16-634, 16-635, 16-636, 16-637, 16-638, 16-639
and 16-640.'';

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

Joe Humerickhouse

Tom Burroughs
Don Steffes

Sandy Praeger

Paul Feleciano, Jr.
 Senator Steffes moved the Senate adopt the Conference Committee Report on SB 240.
      On roll call, the vote was: Yeas 39, nays 0, present and passing 0; absent or not voting 1.
      Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Downey,
Emert, Feleciano, Gilstrap, Gooch, Goodwin, Harrington, Hensley, Huelskamp, Jones,
Jordan, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Praeger, Pugh, Ranson,
Salisbury, Salmans, Steffes, Steineger, Stephens, Tyson, Umbarger, Vidricksen, Vratil.
      Absent or not voting: Hardenburger.
      The Conference Committee report was adopted.
ORIGINAL MOTION
 Senator Emert moved that subsection 4(k) of the Joint Rules of the Senate and House
of Representatives be suspended for the purpose of considering the following bills:
HB  2410.
FINAL ACTION ON CONSENT CALENDAR
 HB 2410 having appeared on the Consent Calendar for the required two full legislative
days without objection from any member, was considered on final action.

   HB 2410, An act concerning cemeteries; relating to the acquisition of land and the
financing of costs thereof.
      On roll call, the vote was: Yeas 39, nays 0, present and passing 0; absent or not voting 1.
      Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Downey,
Emert, Feleciano, Gilstrap, Gooch, Goodwin, Harrington, Hensley, Huelskamp, Jones,
Jordan, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Praeger, Pugh, Ranson,
Salisbury, Salmans, Steffes, Steineger, Stephens, Tyson, Umbarger, Vidricksen, Vratil.
      Absent or not voting: Hardenburger.
      The bill passed.
INTRODUCTION OF ORIGINAL MOTIONS AND SENATE RESOLUTIONS
 Senators 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 and Vratil. introduced the following Senate resolution, which was
read:

      SENATE RESOLTUION No. 1864--

    A  RESOLUTION commending and congratulating Lew Ferguson upon his retirement as
Topeka correspondent for The Associated Press.


      WHEREAS,  Lew Ferguson is retiring July 1, 1999, after a career as a reporter spanning
more than four decades, with an unparalleled reputation for excellence and integrity. He
set lofty standards for fairness and accuracy in covering politics and government and for
keeping the people of Kansas informed about issues important to them.

      WHEREAS,  After serving 29 years as Topeka correspondent for The Associated Press
(AP), Ferguson is the senior AP statehouse reporter in the nation; and

      WHEREAS,  Ferguson began his career as sports and wire editor for his hometown
paper, the Ponca City, Oklahoma, News in 1958. Ferguson joined the AP's Oklahoma City
bureau in 1960, then moved to Sioux Falls, South Dakota, and covered the 1961 session of
the South Dakota legislature. He was an AP sports writer in Minneapolis, Minnesota, from
1962 to 1968 and in Kansas City, Missouri, from 1968 to 1970. He covered the 1965 World
Series and the 1970 Super Bowl and even once took batting lessons from Boston Red Sox
Hall of Famer Ted Williams; and

      WHEREAS,  The AP named Lew Ferguson its Topeka correspondent in 1970; in his
tenure, Lew has covered the administrations of six governors. Newspaper publishers and
editors have come to trust him above all others as the source for news on state government.
Ferguson covered nine Democratic and Republican national conventions, including the
Republican conventions 20 years apart that nominated Kansas Senator Bob Dole for vice-
president and president. Ferguson had weekly lunches with former Governor Alf Landon
for 17 years until Landon's death in 1987 and served as a pallbearer at Landon's funeral.
Ferguson also was a confidant of Karl Menninger and Georgia Neese Gray, first woman
treasurer of the United States, late in their lives. He served as a pallbearer at Menninger's
funeral and has served on the board of trustees for the Menninger Lecture Series since
1982; and

      WHEREAS,  As a champion of open government, Ferguson was a consultant to the
Kansas Supreme Court when it considered--then allowed--cameras in Kansas courtrooms.
Ferguson was the recipient of the Kansas Supreme Court's Kansas Justice Award in 1992,
the only reporter ever to receive the award. He was named the AP Kansas-Missouri Staffer
of the Year Award in 1993 and received the Distinguished Alumnus Award from the
University of Oklahoma's School of Journalism in 1996; and

      WHEREAS,  Ferguson's training has sent numerous reporters on to promising careers
with The Associated Press and other news organizations; and

      WHEREAS,  Ferguson was born in Ponca City, Oklahoma, on January 9, 1934, the son
of Luther LeRoy and Henrietta Marie Ferguson; and received two degrees in journalism
from the University of Oklahoma, a bachelor's degree in 1956, and a master's degree in
1964. He married the former Sue Ann Thomson on June 5, 1958; she taught remedial
reading in Topeka for 21 years. They have two children, John Michael, now an assistant
professor of organic chemistry at the University of Central Oklahoma, and Diane Marie,
now a doctor in San Pedro, California: Now, therefore,

      Be it resolved by the Senate of the State of Kansas: That we commend and congratulate
Lew Ferguson for the 41 years of excellence he has provided to his profession and the
citizens of Kansas in reporting the news. Truly our Capitol will not be the same without
him; and

      Be it further resolved: That the Secretary of the Senate be directed to provide an
enrolled copy of this resolution to Lew Ferguson.

 On emergency motion of Senator Bond SR 1864 was adopted unanimously.
   Senator Bond introduced and congratulated Lew Ferguson for his many years as Topeka
correspondent for The Associated Press. Accompanying Lew were son, Mike Ferguson,
grand daughter Abbey and Bureau Chief of the Associated Press, Paul Stevens.
 Senator Vidricksen introduced the following Senate resolution, which was read:
      SENATE RESOLUTION No. 1865--
    A  RESOLUTION congratulating and commending the Kansas Wesleyan University Lady
Coyote basketball team.
      WHEREAS,  The Kansas Wesleyan University Lady Coyote basketball team is the 1999
National Small College National Tournament Champion; and
      WHEREAS,  The tournament was held in Salina March 5-8, 1999. The Lady Coyotes
entered the tournament with a 11-16 record and as the number 8 seed. They beat the
number 1 seed, Trinity College of Vermont, the number 4 seed, Southern Virginia, and the
number 2 seed, and last year's champion, Arkansas Baptist, to win the championship; and
      WHEREAS,  The Lady Coyotes won the championship for the third time in the past four
years and are the only three time winners since the tournament started in 1962; and
      WHEREAS,  The head coach is Jennifer Head and the assistant coaches are Lance Dible
and Bob Murray; and
      WHEREAS,  Shana English was named the tournament Most Valuable Player and a
National Small College Athletic Association 1st Team All-American: Now, therefore,
      Be it resolved by the Senate of the State of Kansas: That we congratulate and commend
the Kansas Wesleyan University Lady Coyote basketball team for being the 1999 National
Small College National Tournament Champion; and

      Be it further resolved: That the Secretary of the Senate be directed to provide an
enrolled copy of this resolution to Marshall Stanton, President, Kansas Wesleyan University,
Jerry Jones, Athletic Director, Jennifer Head, Head Coach, Lance Dible, Assistant Coach,
Bob Murray, Assistant Coach and Shana English, Tournament M.V.P. and National Small
College Athletic Association 1st team All-American all at Kansas Wesleyan University, 100
E. Claflin, Salina, Kansas 67401.

 On emergency motion of Senator Vidricksen SR 1865 was adopted unanimously.
MESSAGE FROM THE HOUSE
 Announcing passage of SB 360, 362, 363, 364.
 Also, passage of SB 102, as amended; SB 213, as amended by House Substitute for
SB 213.
 The House adopts the conference committee report on HB 2150.
 The House accedes to the request of the Senate for a conference on House Substitute
for SB 6 and has appointed Representatives Wagle, Franklin and Klein as conferees on the
part of the House.
 The House accedes to the request of the Senate for a conference on SB 15 and has
appointed Representatives Wagle, Franklin and Klein as conferees on the part of the House.
   On motion of Senator Emert, the Senate recessed until 1:30 p.m.
______
Afternoon Session
     The Senate met pursuant to recess with President Bond in the chair.

ORIGINAL MOTION
 Pursuant to Senate Rule 75, President Bond determined H Sub for SB 213, as amended
by the House, to be materially changed, and referred the bill to the Committee on Ways
and Means.
ORIGINAL MOTION
 Senator Emert moved that subsection 4(k) of the Joint Rules of the Senate and House
of Representatives be suspended for the purpose of considering the following bills: SB 102,
273.
CONSIDERATION OF MOTIONS TO CONCUR OR NONCONCUR
 Senator Becker moved the Senate Concur in house amendments to SB 273.
 SB 273 An act concerning certain municipalities; relating to the powers and duties of the
governing bodies thereof; amending K.S.A. 68-102a and K.S.A. 1998 Supp. 19-101a and 68-
102 and repealing the existing sections; also repealing K.S.A. 1998 Supp. 19-101i.
      On roll call, the vote was: Yeas 37, nays 2, present and passing 0; absent or not voting 1.
      Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Downey,
Emert, Feleciano, Gilstrap, Gooch, Goodwin, Harrington, Hensley, Huelskamp, Jones,
Jordan, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Praeger, Ranson, Salisbury,
Salmans, Steffes, Steineger, Stephens, Umbarger, Vidricksen, Vratil.
      Nays: Pugh, Tyson.
      Absent or not voting: Hardenburger.
      The Senate concurred.
   On motion of Senator Kerr the Senate nonconcurred in the House amendments to
SB  102 and requested a conference committee be appointed.
 The President appointed Senators Kerr, Salisbury and Petty as a conference committee
on the part of the Senate.
ORIGINAL MOTION
 Senator Emert moved that subsection 4(k) of the Joint Rules of the Senate and House
of Representatives be suspended for the purpose of considering the following bills: SB 205;
HB 2101.
CONFERENCE COMMITTEE REPORT
 Mr. President and Mr. Speaker: Your committee on conference on House
amendments to SB 205, 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 amendments,
as follows:

      On page 5, by striking all in lines 38 through 43;

      By striking all on pages 6 through 15;

      On page 16, by striking all in lines 1 through 13;

      And by renumbering sections accordingly;

      Also on page 16, in line 14, by striking ``12-4516, 21-4619 and''; also in line 14, by striking
``are'' and inserting ``is'';

      On page 1, in the title, in line 13, by striking ``12-4516, 21-4619 and''; in line 14, by
striking ``sections'' and inserting ``section'';

And your committee on conference recommends the adoption of this report.
Michael O'Neal

Tim Carmody

Janice L. Pauls
Tim Emert

John Vratil

Greta Goodwin
 Senator Emert moved the Senate adopt the Conference Committee Report on SB 205.
      On roll call, the vote was: Yeas 12, nays 26, present and passing 1; absent or not voting
1.
      Yeas: Bleeker, Brownlee, Clark, Donovan, Gilstrap, Harrington, Huelskamp, Jordan,
Pugh, Salmans, Tyson, Umbarger.
      Nays: Barone, Becker, Biggs, Bond, Corbin, Downey, Feleciano, Gooch, Goodwin,
Hensley, Jones, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Praeger, Ranson,
Salisbury, Steffes, Steineger, Stephens, Vidricksen, Vratil.
      Present and passing: Emert.
      Absent or not voting: Hardenburger.
      The Conference Committee report was not adopted.
CONFERENCE COMMITTEE REPORT
 Mr. President and Mr. Speaker: Your committee on conference on Senate
amendments to HB 2101, 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, by striking all in lines 15 to 43;

      On page 2, by striking all in lines 1 to 17 and inserting the following:

      ``Section  1. K.S.A. 59-29a01 is hereby amended to read as follows: 59-29a01. The
legislature finds that a small but there exists an extremely dangerous group of sexually violent
predators exist who do not have a mental disease or defect that renders them appropriate
for involuntary treatment pursuant to the treatment act for mentally ill persons defined in
K.S.A. 59-2901 et seq. and amendments thereto, which is intended to provide short-term
treatment to individuals with serious mental disorders and then return them to the
community. In contrast to persons appropriate for civil commitment under K.S.A. 59-2901
et seq. and amendments thereto, sexually violent predators generally have antisocial
personality features which are unamenable to existing mental illness treatment modalities
and those features render them likely to engage in sexually violent behavior. The legislature
further finds that sexually violent predators' likelihood of engaging in repeat acts of predatory
sexual violence is high. The existing involuntary commitment procedure pursuant to the
treatment act for mentally ill persons defined in K.S.A. 59-2901 et seq. and amendments
thereto is inadequate to address the risk these sexually violent predators pose to society.
The legislature further finds that the prognosis for rehabilitating sexually violent predators
in a prison setting is poor, the treatment needs of this population are very long term and
the treatment modalities for this population are very different than the traditional treatment
modalities for people appropriate for commitment under the treatment act for mentally ill
persons defined in K.S.A. 59-2901 et seq. and amendments thereto, therefore a civil
commitment procedure for the long-term care and treatment of the sexually violent predator
is found to be necessary by the legislature abnormality or personality disorder and who are
likely to engage in repeat acts of sexual violence if not treated for their mental abnormality
or personality disorder. Because the existing civil commitment procedures under K.S.A. 59-
2901 et seq. and amendments thereto are inadequate to address the special needs of sexually
violent predators and the risks they present to society, the legislature determines that a
separate involuntary civil commitment process for the potentially long-term control, care
and treatment of sexually violent predators is necessary. The legislature also determines that
because of the nature of the mental abnormalities or personality disorders from which
sexually violent predators suffer, and the dangers they present, it is necessary to house
involuntarily committed sexually violent predators in an environment separate from persons
involuntarily committed under K.S.A. 59-2901 et seq. and amendments thereto.

      Sec.  2. K.S.A. 1998 Supp. 59-29a02 is hereby amended to read as follows: 59-29a02.
As used in this act:

      (a) ``Sexually violent predator'' means any person who has been convicted of or charged
with a sexually violent offense and who suffers from a mental abnormality or personality
disorder which makes the person likely to engage in the predatory repeat acts of sexual
violence.

      (b) ``Mental abnormality'' means a congenital or acquired condition affecting the
emotional or volitional capacity which predisposes the person to commit sexually violent
offenses in a degree constituting such person a menace to the health and safety of others.

      (c) ``Predatory'' means acts directed towards strangers or individuals with whom
relationships have been established or promoted for the primary purpose of victimization.
``Likely to engage in repeat acts of sexual violence'' means the person's propensity to commit
acts of sexual violence is of such a degree as to pose a menace to the health and safety of
others.

      (d) ``Sexually motivated'' means that one of the purposes for which the defendant
committed the crime was for the purpose of the defendant's sexual gratification.

      (e) ``Sexually violent offense'' means:

      (1) Rape as defined in K.S.A. 21-3502 and amendments thereto;

      (2) indecent liberties with a child as defined in K.S.A. 21-3503 and amendments thereto;

      (3) aggravated indecent liberties with a child as defined in K.S.A. 21-3504 and
amendments thereto;

      (4) criminal sodomy as defined in subsection (a)(2) and (a)(3) of K.S.A. 21-3505 and
amendments thereto;

      (5) aggravated criminal sodomy as defined in K.S.A. 21-3506 and amendments thereto;

      (6) indecent solicitation of a child as defined in K.S.A. 21-3510 and amendments
thereto;

      (7) aggravated indecent solicitation of a child as defined in K.S.A. 21-3511 and
amendments thereto;

      (8) sexual exploitation of a child as defined in K.S.A. 21-3516 and amendments thereto;

      (9) aggravated sexual battery as defined in K.S.A. 21-3518 and amendments thereto;

      (10) aggravated incest as defined in K.S.A. 21-3603 and amendments thereto;
      (11) any conviction for a felony offense in effect at any time prior to the effective date
of this act, that is comparable to a sexually violent offense as defined in subparagraphs (1)
through (9) (11) or any federal or other state conviction for a felony offense that under the
laws of this state would be a sexually violent offense as defined in this section;

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

      (12) (13) any act which either at the time of sentencing for the offense or subsequently
during civil commitment proceedings pursuant to this act, has been determined beyond a
reasonable doubt to have been sexually motivated.

      (f) ``Agency with jurisdiction'' means that agency which releases upon lawful order or
authority a person serving a sentence or term of confinement and includes the department
of corrections, the department of social and rehabilitation services and the Kansas parole
board.

      (g) ``Person'' means an individual who is a potential or actual subject of proceedings
under this act.

      (h) ``Treatment staff'' means the persons, agencies or firms employed by or contracted
with the secretary to provide treatment, supervision or other services at the sexually violent
predator facility.

      (i) ``Transitional release'' means any halfway house, work release or other placement
designed to assist the person's adjustment and reintegration into the community once
released from commitment.

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

      Sec.  3. K.S.A. 1998 Supp. 59-29a03 is hereby amended to read as follows: 59-29a03.
(a) When it appears that a person may meet the criteria of a sexually violent predator as
defined in K.S.A. 59-29a02 and amendments thereto, the agency with jurisdiction shall give
written notice of such to the attorney general and the multidisciplinary team established in
subsection (d), 90 days prior to:

      (1) The anticipated release from total confinement of a person who has been convicted
of a sexually violent offense, except that in the case of persons who are returned to prison
for no more than 90 days as a result of revocation of postrelease supervision, written notice
shall be given as soon as practicable following the person's readmission to prison;

      (2) release of a person who has been charged with a sexually violent offense and who
has been determined to be incompetent to stand trial pursuant to K.S.A. 22-3305 and
amendments thereto;

      (3) release of a person who has been found not guilty by reason of insanity of a sexually
violent offense pursuant to K.S.A. 22-3428 and amendments thereto; or

      (4) release of a person who has been found not guilty of a sexually violent offense
pursuant to K.S.A. 22-3428, and amendments thereto, and the jury who returned the verdict
of not guilty answers in the affirmative to the special question asked pursuant to K.S.A. 22-
3221 and amendments thereto.

      (b) The agency with jurisdiction shall inform the attorney general and the
multidisciplinary team established in subsection (d) of the following:

      (1) The person's name, identifying factors, anticipated future residence and offense
history; and

      (2) documentation of institutional adjustment and any treatment received.

      (c) The agency with jurisdiction, its employees, officials, members of the
multidisciplinary team established in subsection (d), members of the prosecutor's review
committee appointed as provided in subsection (e) and individuals contracting, appointed
or volunteering to perform services hereunder shall be immune from liability for any good-
faith conduct under this section.

      (d) The secretary of corrections shall establish a multidisciplinary team which may
include individuals from other state agencies to review available records of each person
referred to such team pursuant to subsection (a). The team, within 30 days of receiving
notice, shall assess whether or not the person meets the definition of a sexually violent
predator, as established in K.S.A. 59-29a02 and amendments thereto. The team shall notify
the attorney general of its assessment.

      (e) The attorney general shall appoint a prosecutor's review committee to review the
records of each person referred to the attorney general pursuant to subsection (a). The
prosecutor's review committee shall assist the attorney general in the determination of
whether or not the person meets the definition of a sexually violent predator. The assessment
of the multidisciplinary team shall be made available to the attorney general and the
prosecutor's review committee.

      (f) The provisions of this section are not jurisdictional, and failure to comply with such
provisions in no way prevents the attorney general from proceeding against a person
otherwise subject to the provision of K.S.A. 59-29a01 et seq., and amendments thereto.

      Sec.  4. K.S.A. 1998 Supp. 59-29a04 is hereby amended to read as follows: 59-29a04.
(a) When it appears that the person presently confined may be a sexually violent predator
and the prosecutor's review committee appointed as provided in subsection (e) of K.S.A.
59-29a03 and amendments thereto has determined that the person meets the definition of
a sexually violent predator, the attorney general may file a petition, within 75 days of the
date the attorney general received the written notice by the agency of jurisdiction as
provided in subsection (a) of K.S.A. 59-29a03 and amendments thereto, alleging that the
person is a sexually violent predator and stating sufficient facts to support such allegation.

      (b) The provisions of this section are not jurisdictional, and failure to comply with such
provisions in no way prevents the attorney general from proceeding against a person
otherwise subject to the provision of K.S.A. 59-29a01 et seq., and amendments thereto.

      Sec.  5. K.S.A. 1998 Supp. 59-29a07 is hereby amended to read as follows: 59-29a07.
(a) The court or jury shall determine whether, beyond a reasonable doubt, the person is a
sexually violent predator. If such determination that the person is a sexually violent predator
is made by a jury, such determination shall be by unanimous verdict of such jury. Such
determination may be appealed. If the court or jury determines that the person is a sexually
violent predator, the person shall be committed to the custody of the secretary of social and
rehabilitation services for control, care and treatment until such time as the person's mental
abnormality or personality disorder has so changed that the person is safe to be at large.
Such control, care and treatment shall be provided at a facility operated by the department
of social and rehabilitation services. At all times, persons committed for control, care and
treatment by the department of social and rehabilitation services pursuant to this act shall
be kept in a secure facility and such persons shall be segregated at all times from any other
patient under the supervision of the secretary of social and rehabilitation services and
commencing June 1, 1995, such persons committed pursuant to this act shall be kept in a
facility or building separate from any other patient under the supervision of the secretary.
The department of social and rehabilitation services is authorized to enter into an
interagency agreement with the department of corrections for the confinement of such
persons. Such persons who are in the confinement of the secretary of corrections pursuant
to an interagency agreement shall be housed and managed separately from offenders in the
custody of the secretary of corrections, and except for occasional instances of supervised
incidental contact, shall be segregated from such offenders. If any person while committed
to the custody of the secretary pursuant to this act shall be taken into custody by any law
enforcement officer as defined in K.S.A. 21-3110 and amendments thereto pursuant to any
parole revocation proceeding or any arrest or conviction for a criminal offense of any nature,
upon the person's release from the custody of any law enforcement officer, the person shall
be returned to the custody of the secretary for further treatment pursuant to this act. During
any such period of time a person is not in the actual custody or supervision of the secretary,
the secretary shall be excused from the provisions of K.S.A. 59-29a08 and amendments
thereto, with regard to providing that person an annual examination, annual notice and
annual report to the court, except that the secretary shall give notice to the court as soon as
reasonably possible after the taking of the person into custody that the person is no longer
in treatment pursuant to this act, and notice to the court when the person is returned to the
custody of the secretary for further treatment. If the court or jury is not satisfied beyond a
reasonable doubt that the person is a sexually violent predator, the court shall direct the
person's release. Upon a mistrial, the court shall direct that the person be held at an
appropriate secure facility, including, but not limited to, a county jail, until another trial is
conducted. Any subsequent trial following a mistrial shall be held within 90 days of the
previous trial, unless such subsequent trial is continued as provided in K.S.A. 59-29a06 and
amendments thereto.

      (b) If the person charged with a sexually violent offense has been found incompetent
to stand trial, and is about to be released pursuant to K.S.A. 22-3305 and amendments
thereto, and such person's commitment is sought pursuant to subsection (a), the court shall
first hear evidence and determine whether the person did commit the act or acts charged.
The hearing on this issue must comply with all the procedures specified in this section. In
addition, the rules of evidence applicable in criminal cases shall apply, and all constitutional
rights available to defendants at criminal trials, other than the right not to be tried while
incompetent, shall apply. After hearing evidence on this issue, the court shall make specific
findings on whether the person did commit the act or acts charged, the extent to which the
person's incompetence or developmental disability affected the outcome of the hearing,
including its effect on the person's ability to consult with and assist counsel and to testify
on such person's own behalf, the extent to which the evidence could be reconstructed
without the assistance of the person and the strength of the prosecution's case. If after the
conclusion of the hearing on this issue, the court finds, beyond a reasonable doubt, that the
person did commit the act or acts charged, the court shall enter a final order, appealable
by the person, on that issue, and may proceed to consider whether the person should be
committed pursuant to this section.

      Sec.  6. K.S.A. 1998 Supp. 59-29a18 is hereby amended to read as follows: 59-29a18.
(a) During any period the person is in transitional release, the person committed under this
act at least annually, and at any other time deemed appropriate by the treatment staff, shall
be examined by the treatment staff to determine if the person's mental abnormality or
personality disorder has so changed so as to warrant such person being considered for
conditional release. The treatment staff shall forward a report of its examination to the court.
The court shall review the same. If the court determines that probable cause exists to believe
that the person's mental abnormality or personality disorder has so changed that the person
is safe to be placed in conditional release, the court shall then set a hearing on the issue.
The attorney general shall have the burden of proof by a to show beyond a reasonable doubt
standard that the person's mental abnormality or personality disorder remains such that the
person is not safe to be at large and that if placed on conditional release is likely to engage
in repeat acts of sexual violence. The person shall have the same rights as enumerated in
K.S.A. 59-29a06 and amendments thereto. Subsequent to either a court review or a hearing,
the court shall issue an appropriate order with findings of fact. The order of the court shall
be provided to the attorney general, the person and the secretary.

      (b) If, after the hearing, the court is convinced beyond a reasonable doubt that the
person is not appropriate for conditional release, the court shall order that the person be
placed on conditional release. Otherwise, the court shall order that the person remain either
in secure commitment or in transitional release. Otherwise, the court shall order that the
person be placed on conditional release.

      Sec.  7. K.S.A. 1998 Supp. 59-29a19 is hereby amended to read as follows: 59-29a19.
(a) If the court determines that the person should be placed on conditional release, the
court, based upon the recommendation of the treatment staff, shall establish a plan of
treatment which the person shall be ordered to follow. This plan of treatment may include,
but shall not be limited to: Provisions as to where the person shall reside and with whom,
taking prescribed medications, attending individual and group counseling, maintaining
employment, having no contact with children, not frequenting facilities, locations, events or
otherwise in which children are likely to be present and not engaging in activities in which
contact with children is likely. Upon a showing by the person that the person accepts the
plan of treatment and is prepared to follow it, the court shall release the person from the
transitional release program.

      (b) After a minimum of five years have passed in which the person has been free of
violations of conditions of such person's treatment plan, the treatment staff, or other
professionals directed by the court may examine such person to determine if the person's
mental abnormality or personality disorder has changed so as to warrant such person being
considered for final discharge. The person preparing the report shall forward the report to
the court. The court shall review the same. If the court determines that probable cause
exists to believe that the person's mental abnormality or personality disorder has so changed
that the person is safe to be entitled to final discharge, the court shall set a formal hearing
on the issue. The attorney general shall have the burden of proof by a to show beyond a
reasonable doubt standard that the person's mental abnormality or personality disorder
remains such that such person is not appropriate for final discharge. The person shall have
the same rights as enumerated in K.S.A. 59-29a06 and amendments thereto. Subsequent to
either a court review or a hearing, the court shall issue an appropriate order with findings
of fact. The order of the court shall be provided to the attorney general, the person and the
secretary.

      (c) If, after a hearing, the court is convinced beyond a reasonable doubt that the person
is not appropriate for final discharge, the court shall order the person finally discharged.
Otherwise, the court shall continue custody of the person with the secretary for placement
in a secure facility, transitional release program or conditional release program. Otherwise,
the court shall order the person finally discharged. In the event the court does not order
final discharge of the person, the person still retains the right to annual reviews.

      (d) At any time during which the person is on conditional release and the professional
person designated by the court in the treatment plan to monitor the person's compliance
with it determines that the person has violated any material condition of that plan, that
professional person may request the district court to issue an emergency ex parte order
directing any law enforcement officers to take the person into custody and return the person
to the secure commitment facility. Any such request may be made verbally or by telephone,
but shall be followed in written or facsimile form delivered to the court not later than 5:00
p.m. of the first day the district court is open for the transaction of business after the verbal
or telephonic request was made.

      (e) Upon the person being returned to the secure commitment facility from conditional
release, notice thereof shall be given by the secretary to the court. The court shall set the
matter for a hearing within two working days of receipt of notice of the person's having
been returned to the secure commitment facility and cause notice thereof to be given to
the attorney general, the person and the secretary. The attorney general shall have the
burden of proof to show probable cause that the person violated conditions of conditional
release. The hearing shall be to the court. At the conclusion of the hearing the court shall
issue an order returning the person to the secure commitment facility, to the transitional
release program or to conditional release, and may order such other further conditions with
which the person must comply if the person is returned to either the transitional release
program or to conditional release.

      (f) The final discharge shall not prevent the person from being prosecuted for any
criminal acts which the person is alleged to have committed or from being subject in the
future to a subsequent commitment under this act.

      New Sec.  8. Any person for whom a petition pursuant to this act has been filed and is
in the secure confinement of the state shall not be eligible for bail, bond, house arrest or
any other measures releasing the person from the physical protective custody of the state,
notwithstanding the provisions of K.S.A. 59-29a10 and amendments thereto.
 
Sec.  9. K.S.A. 59-29a01 and K.S.A. 1998 Supp. 59-29a02, 59-29a03, 59-29a04, 59-
29a07, 59-29a18 and 59-29a19 are hereby repealed.'';

      Also on page 2, by renumbering section 3 as section 10;

      On page 1, in the title, in line 10, by striking all after ``concerning''; by striking all in lines
11 and 12 and inserting ``the civil commitment of sexually violent predators; amending K.S.A.
59-29a01 and K.S.A. 1998 Supp. 59-29a02, 59-29a03, 59-29a04, 59-29a07, 59-29a18 and
59-29a19 and repealing the existing sections.'';

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

John Vratil

Greta Goodwin
Michael O'Neal

Tim Carmody

Janice L. Pauls


 Senator Emert moved the Senate adopt the Conference Committee Report on HB 2101.


      On roll call, the vote was: Yeas 31, nays 8, present and passing 0; absent or not voting 1.
      Yeas: Barone, Becker, Biggs, Bond, Corbin, Donovan, Downey, Emert, Feleciano,
Gilstrap, Gooch, Goodwin, Harrington, Hensley, Jones, Jordan, Kerr, Langworthy,
Lawrence, Lee, Morris, Oleen, Petty, Praeger, Salisbury, Steffes, Steineger, Stephens,
Tyson, Umbarger, Vidricksen.
      Nays: Bleeker, Brownlee, Clark, Huelskamp, Pugh, Ranson, Salmans, Vratil.
      Absent or not voting: Hardenburger.
      The Conference Committee report was adopted.
CHANGE OF CONFERENCE
 The President announced the appointment of Senator Petty as a member of the
Conference Committee on HB 2548 to replace Senator Goodwin.
INTRODUCTION OF ORIGINAL MOTIONS AND SENATE RESOLUTIONS
 Senator Brownlee introduced the following Senate resolution, which was read:

      SENATE RESOLUTION No. 1866--

    A  RESOLUTION in memory of William James ``Jim'' French, Jr.


      WHEREAS,  William James ``Jim'' French, Jr., 81, of Olathe, died February 22, 1999;
and

      WHEREAS,  Mr. French and his wife operated a small business in Liberal for 21 years.
While there he was the founder of the Shrove Tuesday International Pancake Race between
Liberal and Olney, England. As a community leader he was a past president of the Liberal
Jaycees and the Liberal Board of Education; and

      WHEREAS,  As a Republican, Mr. French was Chairman of the Seward County GOP
Central Committee, campaign manager for U.S. Senator Bob Dole, Chairman of the First
(56 counties) Congressional District, a delegate to the 1968 GOP National Convention and
a Republican precinct committeeman for many years;

      WHEREAS,  Mr. French retired in 1980 as the chief financial officer of the Small
Business Administration having jurisdiction over the states of Kansas, Nebraska, Iowa and
Missouri; and

      WHEREAS,  Mr. French was a member of the Olathe Noon Rotary Club, the Grace
United Methodist Church in Olathe, Post 153 of the American Legion in Olathe, Veterans
of Foreign Wars in St. John and the Olathe Chamber of Commerce. He was a member of
several historical groups and societies and wrote historical articles for numerous Kansas
publications including the Johnson's County Gazette; and

      WHEREAS,  Mr. French, a former Eagle Scout, was a combat aerial gunner on a ``Flying
Fortress'' B-17 bomber during World War II earning the Distinguished Flying Cross, Air
Medal with Two Oak Leaf Clusters, European Battle Medal with three battle stars and a
presidential unit citation; and

      WHEREAS,  Mr. French is survived by his wife, Lavone, a son, William James III, two
daughters, Kathryn Purser and Constance Fox, seven grandchildren and four great-
grandchildren: Now, therefore,

      Be it resolved by the Senate of the State of Kansas: That we extend our deepest sympathy
to the family of William James French, Jr.; and

      Be it further resolved: That the Secretary of the Senate be directed to provide an
enrolled copy of this resolution to Mrs. William James French, Jr., 1501 Sunvale Terrace,
Olathe, Kansas 66062.

 On emergency motion of Senator Brownlee SR 1866 was adopted unanimously.
REPORT ON ENGROSSED BILLS
 SB 240, 345 reported correctly re-engrossed May 1, 1999.

REPORT ON ENROLLED BILLS
 SR 1855, 1856, 1857, 1858, 1859, 1860, 1861, 1862, 1863 reported correctly enrolled,
properly signed and presented to the Secretary of the Senate on May 1, 1999.

ORIGINAL MOTION
 Senator Emert moved that subsection 4(k) of the Joint Rules of the Senate and House
of Representatives be suspended for the purpose of considering the following bills: SB 361;
S Sub for HB 2339, S Sub for HB 2558.
FINAL ACTION ON BILLS AND CONCURRENT RESOLUTIONS
On motion of Senator Emert an emergency was declared by a 23 constitutional majority,
and SB 361; S Sub for HB 2339, S Sub for HB 2558 were advanced to Final Action,
subject to amendment, debate and roll call.
 SB 361, An act concerning school districts; authorizing boards of education to enter into
contracts with state educational institutions and corporations controlled thereby for food
service; amending K.S.A. 1998 Supp. 72-5126 and repealing the existing section, was
considered on final action.
 The bill was amended by adoption of the committee amendments.
      On roll call, the vote was: Yeas 39, nays 0, present and passing 0; absent or not voting 1.
      Yeas: Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Downey,
Emert, Feleciano, Gilstrap, Gooch, Goodwin, Harrington, Hensley, Huelskamp, Jones,
Jordan, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Praeger, Pugh, Ranson,
Salisbury, Salmans, Steffes, Steineger, Stephens, Tyson, Umbarger, Vidricksen, Vratil.
      Absent or not voting: Hardenburger.
      The bill passed, as amended.
   S Sub for HB 2339, An act concerning legislative compensation and benefits; amending
K.S.A. 74-4995 and K.S.A. 1998 Supp. 46-137a and 74-4911f and repealing the existing
sections, was considered on final action.
 The bill was amended by adoption of the committee report recommending a substitute
bill.
      On roll call, the vote was: Yeas 14, nays 25, present and passing 0; absent or not voting
1.
      Yeas: Becker, Bond, Corbin, Donovan, Gooch, Jones, Langworthy, Lawrence, Oleen,
Praeger, Ranson, Steineger, Vidricksen, Vratil.
      Nays: Barone, Biggs, Bleeker, Brownlee, Clark, Downey, Emert, Feleciano, Gilstrap,
Goodwin, Harrington, Hensley, Huelskamp, Jordan, Kerr, Lee, Morris, Petty, Pugh,
Salisbury, Salmans, Steffes, Stephens, Tyson, Umbarger.
      Absent or not voting: Hardenburger.
      The substitute bill did not pass.

EXPLANATION OF VOTE
 Mr. President: I vote ``aye'' on S Sub for HB 2339.
 I believe in a citizen legislature as well as term limits so I do not want to see legislative
salaries raised to a level that encourages one to become a career legislator or stay too long.
However, I believe the plan presented in S Sub for HB 2339 is reasonable and may allow
more people to run for office and be more fairly compensated for the time and effort spent
both in Topeka and in their district. I believe most of my colleagues need and deserve this
pay raise.--Pat Ranson
 The following amendment offered to S Sub for HB 2339 by Senator Salisbury was
rejected: on page 1, in line 14, preceding ``K.S.A.'' by inserting ``On and after January 8,
2001,''; in line 21, by striking all following ``(2)''; in line 22, by striking ``2000,''; in line 34,
by striking ``2000'' and inserting ``2002'';
      On page 2, in line 27, by striking ``2000'' and inserting ``2001''; in line 31, by striking ``;
and'' and inserting a period; by striking all in lines 32 through 39; in line 40, preceding
``K.S.A.'' by inserting ``On and after January 8, 2001,'';
      On page 3, in line 21, by striking ``On and after January 8, 2001, any'' and inserting ``Any'';
      On page 4, in line 23, preceding ``K.S.A.'' by inserting ``On and after January 8, 2001,'';
in line 24, by striking ``July 1, 1999'' and inserting ``January 8, 2001'';
      On page 5, by striking all in lines 26 through 32; in line 33, by striking ``(c)'' and inserting
``(b)'';
      On page 6, in line 8, by striking ``Except'' and inserting ``On and after January 8, 2001,
except''; in line 21, by striking ``If'' and inserting ``On and after January 8, 2001, if''; in line
29, preceding ``K.S.A.'' where it appears for the first time, by inserting ``On and after January
8, 2001,''; in line 31, preceding ``its'' by inserting ``January 8, 2001, and'';
   S Sub for HB 2558, An act concerning the disposition of certain moneys for the benefit
of children; disposition of tobacco litigation settlement proceeds; creating the Kansas
endowment for youth fund, the children's initiatives fund and the children's initiatives
accountability fund; establishing the Kansas children's cabinet; prescribing certain powers,
duties and functions; providing for the investment and management of such funds;
abolishing the children's health care programs fund; amending K.S.A. 75-7021 and K.S.A.
1998 Supp. 20-367, 38-1808 and 38-1901 and repealing the existing sections; also repealing
K.S.A. 1998 Supp. 38-2008, as amended by adoption of the committee report recommending
a substitute bill, and by Senator Brownlee, on Friday, April 30, 1999, was considered on
final action.
 The substitute bill was amended by motion of Senator Salmans on page 2 of the typed
version of the bill, in line 30, before ``juvenile'' by inserting ``tobacco, alcohol, drugs or''
 Upon the showing of five hands a roll call vote was requested.
      On roll call, the vote was: Yeas 26, nays 10, present and passing 1; absent or not voting
3.
      Yeas: Barone, Biggs, Bleeker, Brownlee, Clark, Corbin, Donovan, Downey, Feleciano,
Gilstrap, Goodwin, Harrington, Hensley, Huelskamp, Jones, Jordan, Lee, Petty, Praeger,
Pugh, Ranson, Salmans, Steineger, Stephens, Tyson, Vratil.
      Nays: Becker, Bond, Emert, Langworthy, Lawrence, Morris, Oleen, Steffes, Umbarger,
Vidricksen.
      Present and passing: Gooch.
      Absent or not voting: Hardenburger, Kerr, Salisbury.
      The motion carried and the amendment was adopted.
 The substitute bill was amended by motion of Senator Bleeker on page 18, line 14, by
striking all after the period; by striking all in line 15.
 The substitute bill was amended by motion of Senator Kerr on page 12, in line 35 by
striking ``(7)'' and inserting ``(8)''; in line 36, by striking ``(8)'' and inserting ``(9)''; in line 37,
by striking ``(9)'' and inserting ``(10)''; in line 38 by striking ``(10)'' and inserting ``(11)'';
      On roll call for Final Action on S Sub HB 2558 the vote was: Yeas 29, nays 10, present
and passing 0; absent or not voting 1.
      Yeas: Barone, Becker, Biggs, Bond, Corbin, Donovan, Downey, Emert, Feleciano,
Gilstrap, Gooch, Goodwin, Hensley, Jones, Kerr, Langworthy, Lee, Morris, Oleen, Petty,
Praeger, Salisbury, Steffes, Steineger, Stephens, Tyson, Umbarger, Vidricksen, Vratil.
      Nays: Bleeker, Brownlee, Clark, Harrington, Huelskamp, Jordan, Lawrence, Pugh,
Ranson, Salmans.
      Absent or not voting: Hardenburger.
      The substitute bill passed, as amended.

EXPLANATION OF VOTE
 Mr. President: I vote yes on S Sub for HB 2558.
 The other day, we took the step of approving a new comprehensive transportation plan
that will play an important part in the future economic growth of our state.
 The second step we take today, and in my opinion a more important step for our future
economic and social growth, is the approval of a comprehensive plan for our children.
 The passage of this bill represents the beginning of what I hope will be an historic, long-
term commitment by this and future legislatures to our state's most valuable resource, our
children.
 I have always believed that if we approved a multi-year plan for transportation, we should
also set in motion a multi-year plan for children. Today, we have seized the opportunity to
establish the Kansas Endowment for Youth Fund and begin to lay the foundation for the
well-being of generations to come.
 As a father, teacher, and legislator, I am proud that Kansas has taken a leadership role
that will serve as an example to other state legislatures as a great accomplishment and the
best possible future use of tobacco settlement money.--Anthony Hensley
   Mr. President: Children. Children. Children. We have all heard the rhetoric, Mr.
President. But today rhetoric was replaced by reality. Instead of taking this excellent
opportunity to dedicate tobacco settlement funds to the needs of children--whether it be
for reducing class size for kids, increasing pay for those who teach our kids, helping support
families with tax credits, funding college scholarships for kids, promoting health care for
kids and meeting the technology needs of our schools--this Senate has chosen instead to
keep these funds to spend as their own political capital in future years. The reality today
has certainly clarified the rhetoric of those who refused to support these initiatives for our
kids.--Tim Huelskamp
   Mr. President: I vote ``NO'' on S Sub for HB 2558 because it was thrust upon the
Senate at the last minute without hearings and without full understanding of the
consequences of its passage. No citizen should be proud of the way this piece of legislation
was handled in the last days of this session, when deals are made that may not be in the
best interests of the Kansas taxpayers and may cost them dearly in the future.--Pat Ranson
   The following amendments offered to S Sub HB 2558 were rejected:
 Senator Clark moved to amend the bill on page 16, following line 31, by inserting the
following material to read as follows:
      ``New Sec.  10. (a) The state board of regents shall establish and implement the STARS
scholarship program for Kansas residents who are students at postsecondary educational
institutions in accordance with this section. The STARS scholarship program shall be
designed to augment and supplement other available financial assistance, including, but not
limited to, financial assistance through state or federal programs providing scholarships,
grants, tuition assistance or work-study opportunities, and to provide financial assistance to
persons with demonstrated need who are students at postsecondary educational institutions.
Eligibility for the financial assistance program shall be established in accordance with need-
based and other criteria prescribed by rules and regulations adopted by the state board of
regents. The STARS scholarship program established under this section shall provide grants
or other forms of financial assistance to eligible students for all or part of tuition and fees
charged by the postsecondary educational institution for each semester, or other equivalent
academic or instructional period, and may be renewed for not more than eight semesters,
or other equivalent academic or instructional periods, upon continued satisfactory
completion of the student's course-work requirements at the postsecondary educational
institution and maintaining the equivalent of at least a 2.75 grade point average on a 4.0
scale. The state board shall implement the STARS scholarship program commencing with
the fall semester of the 2001-2002 academic year, or the equivalent academic or instructional
period that commences in the fall of 2000.
      (b) There is hereby established in the state treasury the STARS scholarship program
fund which shall be administered by the state board of regents. All moneys credited to the
STARS scholarship program fund shall be used for STARS program scholarships in
accordance with this act. All expenditures from the STARS scholarship program fund shall
be made in accordance with appropriation acts upon warrants of the director of accounts
and reports issued pursuant to vouchers approved by the executive officer of the state board
of regents or the executive officer's designee.
      (c) On July 1, 2001, and on each July 1 thereafter, or as soon thereafter as moneys are
available, the director of accounts and reports shall transfer $50,000,000 from the Kansas
endowment for youth fund to the STARS scholarship program fund.'';
      And by renumbering sections accordingly.
 Upon the showing of five hands a roll call vote was requested.
      On roll call, the vote was: Yeas 13, nays 17, present and passing 6; absent or not voting
4.
      Yeas: Bleeker, Brownlee, Clark, Donovan, Gilstrap, Harrington, Huelskamp, Jordan,
Pugh, Ranson, Salmans, Tyson, Umbarger.
      Nays: Becker, Biggs, Bond, Corbin, Downey, Emert, Goodwin, Kerr, Langworthy,
Lawrence, Lee, Morris, Praeger, Steffes, Steineger, Vidricksen, Vratil.
      Present and passing: Barone, Feleciano, Gooch, Hensley, Petty, Stephens.
      Absent or not voting: Hardenburger, Jones, Oleen, Salisbury.
      The motion failed and the amendment was rejected.

EXPLANATION OF VOTE
 Mr. President: I support the STARS scholarship program. While the STARS
scholarship program merits passage and implementation by this Kansas Legislature, I cannot
vote for STARS at the expense of the Children's Trust Fund. In fact, it is questionable
whether this amendment is even permissible under the provisions of the underlying bill.
 The Children's Trust Fund will direct funding to the health and well-being of Kansas
children under the age of 18. The STARS program will provide scholarships to many
Kansans who chose to attend a postsecondary educational institution and most of whom
would be over the age of 18.
 However I hope future legislatures will revisit the STARS program and provide Kansans
a better opportunity to obtain an affordable postsecondary education.--Anthony Hensley
   Senator Jordan moved to amend the bill on page 16, preceding line 32, by inserting the
following material to read as follows:
      ``New Sec.  10. (a) On July 1, 2000, and on each July 1 thereafter, or as soon thereafter
as moneys are available, the director of accounts and reports shall transfer $1,000,000 from
the Kansas endowment for youth fund to the at-risk kids fund.
      (b) There is hereby established in the state treasury the at-risk kids fund which shall be
administered by the Kansas children's cabinet. All expenditures from the fund shall be made
in accordance with appropriation acts upon warrants of the director of accounts and reports
issued pursuant to vouchers approved by the chairperson of the Kansas children's cabinet
or by the designee of the chairperson of the Kansas children's cabinet. All expenditures
from the at-risk kids fund shall be made: (1) To teachers and paraprofessionals who serve
students in grades six through 12 and work in schools where at least 40% of the student
population is eligible for a free or reduced school lunch program; and
      (2) to applicants who develop a lesson plan or thematic unit marked by creativity and
fidelity to the highest standards of academic achievement.
      (c) An applicant's proposal may focus on any academic or vocational-technical subject.
      (d) The Kansas children's cabinet shall develop and provide application forms containing
the criteria in subsections (b) and (c) and such other information required by the cabinet
for the award to be granted.
      (e) Yearly awards of $2,000 each shall be awarded to 500 persons meeting the
established criteria.'';
      And by renumbering sections accordingly;
      In the title, on page 1, in line 16 after the semicolon by inserting ``establishing the at-risk
kids fund;''
 Upon the showing of five hands a roll call vote was requested.
      On roll call, the vote was: Yeas 13, nays 19, present and passing 5; absent or not voting
3.
      Yeas: Bleeker, Brownlee, Clark, Donovan, Gilstrap, Harrington, Huelskamp, Jordan,
Pugh, Ranson, Salmans, Tyson, Umbarger.
      Nays: Becker, Biggs, Bond, Corbin, Downey, Emert, Gooch, Goodwin, Hensley,
Langworthy, Lawrence, Lee, Petty, Praeger, Salisbury, Steffes, Steineger, Vidricksen, Vratil.
      Present and passing: Barone, Feleciano, Kerr, Morris, Stephens.
      Absent or not voting: Hardenburger, Jones, Oleen.
      The motion failed and the amendment was rejected.
 According to Senate Rules, a call of the senate was determined to be not in order.
 Senator Pugh moved to amend the bill on page 22 of the typed version of the bill,
preceding line 22, by inserting the following material to read as follows:
      ``New Sec.  10 (a) For all taxable years commencing after December 31, 1998, there
shall be allowed as a credit against the tax liability of a resident individual imposed under
the Kansas income tax act, an amount equal to 25% of the amount of the credit allowed
against such individual's federal income tax liability pursuant to section 24 of the federal
internal revenue code for the taxable year for which such credit was claimed against the
individual's federal income tax liability. The credit allowed by this section shall not exceed
the amount of tax imposed by K.S.A. 79-32,110, and amendments thereto, reduced by the
sum of any other credits allowable pursuant to law. The tax credit allowed by this section
shall be known as the children-first initiatives tax credit.
      (b) On July 1, 2000, and on each July 1 thereafter, or as soon after moneys are available,
the director of accounts and reports shall transfer $36,100,000 from the Kansas endowment
for youth fund to the state general fund.'';
      New Sec.  11. (a) On July 1, 2000, or as soon thereafter as moneys are available, the
director of accounts and reports shall transfer $14,000,000 from the Kansas endowment for
youth fund to the teacher merit pay fund. On each July 1 after July 1, 2000, the director of
accounts and reports shall transfer the amount equal to $14,000,000 increased by a
percentage equal to the percentage increase in the moneys received pursuant to the tobacco
litigation settlement agreements during the current fiscal year over the amount of such
moneys received during the preceding fiscal year.
      (b) There is hereby established in the state treasury the teacher merit pay fund which
shall be administered by the board of education. All expenditures from the fund shall be
made in accordance with appropriation acts upon warrants of the director of accounts and
reports issued pursuant to vouchers approved by the chairperson of the board of education
or by the designee of the board of education. All expenditures from the teacher merit pay
fund during each fiscal year shall be allocated and distributed equally among all classroom
teachers employed by school districts and accredited nonpublic schools.
      (c) As used in this section, ``classroom teacher'' means regular kindergarten through
grade 12 classroom teachers, special education teachers, practical arts/vocational education
teachers, prekindergarten teachers and reading specialists.'';
      And by renumbering sections accordingly.
 Upon the showing of five hands a roll call vote was requested.
 A request for the question to be divided was withdrawn.
      On roll call, the vote was: Yeas 13, nays 15, present and passing 11; absent or not voting
1.
      Yeas: Bleeker, Brownlee, Clark, Donovan, Gilstrap, Harrington, Huelskamp, Jordan,
Pugh, Ranson, Salmans, Tyson, Umbarger.
      Nays: Becker, Biggs, Bond, Emert, Goodwin, Jones, Langworthy, Lee, Oleen, Praeger,
Salisbury, Steffes, Steineger, Vidricksen, Vratil.
      Present and passing: Barone, Corbin, Downey, Feleciano, Gooch, Hensley, Kerr,
Lawrence, Morris, Petty, Stephens.
      Absent or not voting: Hardenburger.
      The motion failed and the amendment was rejected.

EXPLANATION OF VOTE
 Mr. President: The first part of this amendment has merit and would provide tax relief
to working families with children.
 The second part would authorize the transfer of $14 million from the Children's Trust
Fund to provide teacher merit pay increases. This amendment defines ``teacher'' to include
special education teachers, of which I am one.
 While I support the first part of this amendment, I have a direct financial conflict of
interest with the second part because I am employed as a special education teacher in USD
501. Due to this conflict, I must abstain from voting this on this amendment.--Anthony
Hensley
   Senator Brownlee moved to amend the bill on page 7, preceding line 18, by inserting the
following material to read as follows:
      ``New Sec.  4. (a) On July 1, 2000, and on each July 1 thereafter, or as soon thereafter
as moneys are available, the director of accounts and reports shall transfer $30,000,000 from
the Kansas endowment for youth fund to the preferred PTR classes fund.
      (b) There is hereby established in the state treasury the preferred PTR classes fund
which shall be administered by the state board of education. All expenditures from the fund
shall be made in accordance with appropriation acts upon warrants of the director of
accounts and reports issued pursuant to vouchers approved by the chairperson of the state
board of education or by the designee of the state board of education. All expenditures from
the preferred PTR classes fund shall be for the purpose of maintenance by school districts
of preferred pupil/teacher ratio classes having a pupil/teacher ratio of not more than 17.1.'';
      And by renumbering sections accordingly.
 Upon the showing of five hands a roll call vote was requested.
      On roll call, the vote was: Yeas 12, nays 12, present and passing 10; absent or not voting
6.
      Yeas: Bleeker, Brownlee, Clark, Donovan, Harrington, Huelskamp, Jordan, Pugh,
Ranson, Salmans, Tyson, Umbarger.
      Nays: Becker, Biggs, Bond, Emert, Goodwin, Hensley, Jones, Langworthy, Praeger,
Steffes, Steineger, Vidricksen.
      Present and passing: Barone, Downey, Feleciano, Gilstrap, Gooch, Lawrence, Lee,
Morris, Petty, Stephens.
      Absent or not voting: Corbin, Hardenburger, Kerr, Oleen, Salisbury, Vratil.
      The motion failed and the amendment was rejected.

EXPLANATION OF VOTE
 Mr. President: While I believe children will have a better chance to succeed in school
by reducing class size in the early grades, I cannot support this amendment at this time.
Most of our public school administrators I visit with want the Legislature to fund all-day
kindergarten as a better way to help children obtain a good, early headstart to their
education.
 I believe the next session of the Legislature must better address the issue of early
childhood education, especially in beginning to fund all-day kindergarten.--Anthony
Hensley
 Senator Bleeker moved to amend the bill on page 3, of the typed version of the bill, in
line 12, by striking ``Moneys allocated''; by striking all in lines 13, 14, and 15;
 Upon the showing of five hands a roll call vote was requested.
      On roll call, the vote was: Yeas 18, nays 17, present and passing 1; absent or not voting
4.
      Yeas: Bleeker, Brownlee, Clark, Corbin, Donovan, Gilstrap, Gooch, Harrington,
Huelskamp, Jordan, Lawrence, Morris, Oleen, Pugh, Ranson, Salmans, Tyson, Umbarger.
      Nays: Barone, Becker, Biggs, Bond, Feleciano, Goodwin, Hensley, Jones, Langworthy,
Lee, Petty, Praeger, Steffes, Steineger, Stephens, Vidricksen, Vratil.
      Present and passing: Emert.
      Absent or not voting: Downey, Hardenburger, Kerr, Salisbury.
      The motion carried and the amendment was adopted.
 Having voted on the prevailing side, Senator Gooch moved the senate reconsider its action
on the previous amendment.
 The motion carried, and the amendment offered by Senator Bleeker was reconsidered
and rejected.
 Senator Clark moved to amend the bill on page 16, following line 31, by inserting the
following material to read as follows:
      ``New Sec.  10. (a) On July 1, 2000, or as soon thereafter as moneys are available, the
director of accounts and reports shall transfer $21,026,955 from the Kansas endowment for
youth fund to the Kansas higher education fund. On July 1, 2001, or as soon thereafter as
moneys are available, the director of accounts and reports shall transfer $15,513,055 from
the Kansas endowment for youth fund to the Kansas higher education fund. On July 1, 2002,
or as soon thereafter as moneys are available, the director of accounts and reports shall
transfer $16,252,640 from the Kansas endowment for youth fund to the Kansas higher
education fund. On July 1, 2003, or as soon thereafter as moneys are available, the director
of accounts and reports shall transfer $16,881,065 from the Kansas endowment for youth
fund to the Kansas higher education fund.
      (b) There is hereby established in the state treasury the Kansas higher education fund
which shall be administered by the state board of regents. All expenditures from the Kansas
higher education fund shall be made in accordance with appropriation acts upon warrants
of the director of accounts and reports issued pursuant to vouchers approved by the
chairperson of the state board of regents or by the designee of the state board of regents.
All expenditures from the Kansas higher education fund during fiscal years 2000 through
2003 shall be allocated and distributed to postsecondary educational institutions in
accordance with the provisions of the Kansas higher education coordination act.'';
      And by renumbering sections accordingly.
 Upon the showing of five hands a roll call vote was requested.
      On roll call, the vote was: Yeas 12, nays 22, present and passing 3; absent or not voting
3.
      Yeas: Bleeker, Brownlee, Clark, Donovan, Harrington, Huelskamp, Jordan, Pugh,
Ranson, Salmans, Tyson, Umbarger.
      Nays: Becker, Biggs, Bond, Corbin, Downey, Emert, Feleciano, Gooch, Goodwin,
Hensley, Jones, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Praeger, Steffes,
Steineger, Vidricksen, Vratil.
      Present and passing: Barone, Gilstrap, Stephens.
      Absent or not voting: Hardenburger, Kerr, Salisbury.
      The motion failed and the amendment was rejected.
 Senator Huelskamp moved to amend the bill on page 16, preceding line 32, by inserting
the following material to read as follows:
      ``New Sec.  10. (a) On July 1, 2000, and on each July 1 thereafter, or as soon thereafter
as moneys are available, the director of accounts and reports shall transfer 10% of the
unencumbered balance in the Kansas endowment for youth fund on each such date to the
crumbling classrooms fund.
      (b) There is hereby established in the state treasury the crumbling classrooms fund
which shall be administered by the state board of regents. All expenditures from the fund
shall be made in accordance with appropriation acts upon warrants of the director of
accounts and reports issued pursuant to vouchers approved by the chairperson of the state
board of regents or by the designee of the state board of regents. All expenditures from the
crumbling classrooms fund shall be made to Washburn university and the community
colleges for the purpose of construction, reconstruction, repair, remodeling, additions to,
furnishing and equipping of classrooms.'';
      And by renumbering sections accordingly.
 Upon the showing of five hands a roll call vote was requested.
      On roll call, the vote was: Yeas 11, nays 24, present and passing 2; absent or not voting
3.
      Yeas: Bleeker, Brownlee, Clark, Harrington, Huelskamp, Jordan, Pugh, Ranson, Salmans,
Tyson, Umbarger.
      Nays: Becker, Biggs, Bond, Corbin, Donovan, Downey, Emert, Feleciano, Gooch,
Goodwin, Hensley, Jones, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Praeger,
Steffes, Steineger, Stephens, Vidricksen, Vratil.
      Present and passing: Barone, Gilstrap.
      Absent or not voting: Hardenburger, Kerr, Salisbury.
      The motion failed and the amendment was rejected.
 Senator Tyson moved to amend the bill on page 16, preceding line 32, by inserting the
following material to read as follows:
      ``New Sec.  10. (a) On July 1, 2001, and on each July 1 thereafter, or as soon thereafter
as moneys are available, the director of accounts and reports shall transfer an amount
certified to the director of accounts and reports by the state board of education determined
to be necessary to fund the difference between the state general fund appropriation for
special education and the amount required to reimburse school districts at 100% of the
actual expenses incurred for the provision of such services from the Kansas endowment for
youth fund to the school district special education fund.
      (b) There is hereby established in the state treasury the school district special education
fund which shall be administered by the state board of education. All expenditures from the
fund shall be made in accordance with appropriation acts upon warrants of the director of
accounts and reports issued pursuant to vouchers approved by the chairperson of the state
board of education or by the designee of the state board of education. All expenditures from
the school district special education fund during fiscal year 2002 and thereafter shall be
allocated and distributed to school districts in an amount necessary to reimburse school
districts for the provision of special education services in an amount equal to 100% of the
actual expenses incurred for such services.'';
      And by renumbering sections accordingly.
 Upon the showing of five hands a roll call vote was requested.
      On roll call, the vote was: Yeas 12, nays 18, present and passing 7; absent or not voting
3.
      Yeas: Bleeker, Brownlee, Clark, Donovan, Gilstrap, Harrington, Huelskamp, Jordan,
Pugh, Ranson, Salmans, Tyson.
      Nays: Becker, Biggs, Bond, Corbin, Emert, Goodwin, Hensley, Jones, Langworthy, Lee,
Morris, Petty, Praeger, Steffes, Steineger, Stephens, Vidricksen, Vratil.
      Present and passing: Barone, Downey, Feleciano, Gooch, Lawrence, Oleen, Umbarger.
      Absent or not voting: Hardenburger, Kerr, Salisbury.
      The motion failed and the amendment was rejected.
 Senator Harrington moved to amend the bill on page 1, of the typed version of the bill,
in line 19, by striking ``All: and inserting ``Subject to the provisions of section 10 and
amendments thereto providing for the crediting of amounts to the technology trust fund,
all'';
 On page 22, of the typed version of the bill, following line 21, by inserting the following
material to read as follows:
 ``New Sec. 10 (a) There is hereby established in the state treasury the technology trust
fund which shall be administered by the department of education.
 (b) The amount equal to 1% of each amount of moneys received by the state pursuant
to the tobacco litigation settlement agreements entered into by the attorney general on
behalf of the state of Kansas, or pursuant to any judgment rendered, regarding the litigation
against tobacco industry companies and related entities, shall be deposited in the state
treasury and credited to the technology trust fund. All expenditures from the technology
trust fund shall be made in accordance with appropriation acts upon warrants of the director
of accounts and reports issued pursuant to vouchers approved by the chairperson of the
state board of education or by the designee of the state board of education.
 (c) All expenditures from the technology trust fund shall be for grants to unified school
districts pursuant to grant applications for the purchase of technology equipment for
instructional purposes, in accordance with guidelines established by the state board of
education.'';
 And by renumbering sections accordingly.
 Upon the showing of five hands a roll call vote was requested.
      On roll call, the vote was: Yeas 14, nays 21, present and passing 2; absent or not voting
3.
      Yeas: Bleeker, Brownlee, Clark, Donovan, Gilstrap, Harrington, Huelskamp, Jordan,
Lawrence, Oleen, Pugh, Ranson, Salmans, Tyson.
      Nays: Becker, Biggs, Bond, Corbin, Downey, Emert, Feleciano, Gooch, Goodwin,
Hensley, Jones, Langworthy, Lee, Morris, Petty, Praeger, Steffes, Steineger, Stephens,
Vidricksen, Vratil.
      Present and passing: Barone, Umbarger.
      Absent or not voting: Hardenburger, Kerr, Salisbury.
      The motion failed and the amendment was rejected.
 Senator Bleeker moved to amend the bill on page 16, preceding line 32, by inserting the
following material to read as follows:
      ``New Sec.  10. (a) On July 1, 2001, and on each July 1 thereafter, or as soon thereafter
as moneys are available, the director of accounts and reports shall transfer $15,000,000 from
the Kansas endowment for youth fund to the Kansas income taxpayer rebate fund.
      (b) There is hereby established in the state treasury the Kansas income taxpayer rebate
fund which shall be administered by the department of revenue. All expenditures from the
fund shall be made in accordance with appropriation acts upon warrants of the director of
accounts and reports issued pursuant to vouchers approved by the secretary of revenue or
by the secretary's designee. All expenditures from the Kansas income taxpayer rebate fund
shall be for rebates to Kansas income taxpayers. The amount of such rebate that each income
taxpayer shall be entitled is equal to the proportion thereof that such taxpayer's paid liability
of the preceding income tax year bears to all taxpayers paid liability of such year, except
that no taxpayer shall receive less than a $5 rebate amount.
      (c) On or before December 15 of any year to which subsection (a) applies, the secretary
of revenue shall certify to the director of accounts and reports the name and last known
address of the income taxpayer, the amount of the rebate and such other information as the
director may require. Upon receipt of such certification, the director of accounts and reports
shall issue a warrant on the state treasurer for the payment to the taxpayer from the Kansas
income taxpayer rebate fund. The following notation shall be made thereon: ''This check is
valid for 180 days. If this check is not cashed within 180 days it will be used to fund K-12
public education.`` No such warrant shall be valid after 180 days after its date of issuance.
In the event any such warrant becomes invalid, the resulting amount of moneys shall be
distributed to the school district where the taxpayer resided at the time of the issuance of
the warrant. Such moneys shall be disposed of as provided in subsection (a) of K.S.A. 72-
6427, and amendments thereto. If the taxpayer was not a resident of the state of Kansas at
the time of the issuance of the warrant, the moneys shall be transferred from the Kansas
income taxpayer rebate fund to the state school district finance fund.
      (d) Any rebate made to any taxpayer pursuant to the provisions of this section shall be
exempt from taxation under the Kansas income tax act.'';
      And by renumbering sections accordingly.
 The motion failed and the amendment was rejected.
 Senator Huelskamp moved to amend the bill on page 16, preceding line 32, by inserting
the following material to read as follows:
      ``New Sec.  10. (a) For all taxable years commencing after December 31, 1998, there
shall be allowed as a credit against the tax liability of a resident individual imposed under
the Kansas income tax act the amount of $1,500 for the taxable year in which occurs the
lawful adoption of a child in the custody of the secretary of social and rehabilitation services
or a child with special needs, whether or not such individual is reimbursed for all or part of
qualified adoption expenses or has a public or private grant therefor. The credit allowed by
this section shall be in addition to the credit allowed pursuant to the provisions of subsection
(b) of K.S.A. 79-32,202 and amendments thereto. The tax credit allowed by this section
shall be known as the adoptive parents tax credit.
      (b) On July 1, 2000, and on each July 1 thereafter, or as soon thereafter as moneys are
available, the director of accounts and reports shall transfer from the Kansas endowment
for youth fund to the state general fund the amount needed to provide for the tax credit
allowed under subsection (a) as certified to the director of accounts and reports by the
secretary of revenue.'';
      And by renumbering sections accordingly.
 A ruling of the chair was requested as to the germaness of the amendment to the bill.
 The Chair ruled the amendment to be not germane.
 Senator Huelskamp moved to amend the bill on page 16, preceding line 32, by inserting
the following material to read as follows:
      ``New Sec.  10. (a) On July 1, 2000, and on each July 1 thereafter, or as soon thereafter
as moneys are available, the director of accounts and reports shall transfer 10% of the
unencumbered balance in the Kansas endowment for youth fund on each such date to the
crumbling classrooms fund.
      (b) There is hereby established in the state treasury the crumbling classrooms fund
which shall be administered by the state board of regents. All expenditures from the fund
shall be made in accordance with appropriation acts upon warrants of the director of
accounts and reports issued pursuant to vouchers approved by the chairperson of the state
board of regents or by the designee of the state board of regents. All expenditures from the
crumbling classrooms fund shall be made to Washburn university, the community colleges,
the technical colleges, the area vocational schools and the area vocational-technical schools
for the purpose of construction, reconstruction, repair, remodeling, additions to, furnishing
and equipping of classrooms.'';
      And by renumbering sections accordingly.
 The motion failed and the amendment was rejected.
 Senator Clark moved to amend the bill on page 16, preceding line 32, by inserting the
following material to read as follows:
      ``New Sec.  10. (a) On July 1, 2001, and on each July 1 thereafter, or as soon thereafter
as moneys are available, the director of accounts and reports shall transfer an amount
certified to the director of accounts and reports by the state board of education determined
to be necessary to provide for additional general state aid in an amount computed as though
the base state aid per pupil was $75 greater than specified in K.S.A. 72-6410 and
amendments thereto from the Kansas endowment for youth fund to the additional general
state aid fund.
      (b) There is hereby established in the state treasury the additional general state aid fund
which shall be administered by the state board of education. All expenditures from the fund
shall be made in accordance with appropriation acts upon warrants of the director of
accounts and reports issued pursuant to vouchers approved by the chairperson of the state
board of education or by the designee of the state board of education. All expenditures from
the additional state aid fund during fiscal year 2000 shall be allocated and distributed to
school districts in the manner and at the times general state aid is distributed under K.S.A.
72-6417 and amendments thereto. The additional state aid received by a district may be
disposed of as provided in subsection (a) of K.S.A. 72-6427 and amendments thereto.'';
      And by renumbering sections accordingly.
 Upon the showing of five hands a roll call vote was requested.
      On roll call, the vote was: Yeas 9, nays 22, present and passing 7; absent or not voting 2.
      Yeas: Bleeker, Brownlee, Clark, Gilstrap, Harrington, Huelskamp, Jordan, Pugh, Tyson.
      Nays: Becker, Biggs, Bond, Corbin, Donovan, Emert, Goodwin, Hensley, Jones, Kerr,
Langworthy, Lawrence, Lee, Morris, Praeger, Salisbury, Salmans, Steffes, Steineger,
Umbarger, Vidricksen, Vratil.
      Present and passing: Barone, Downey, Feleciano, Gooch, Oleen, Ranson, Stephens.
      Absent or not voting: Hardenburger, Petty.
      The motion failed and the amendment was rejected.
 Senator Bleeker moved to amend the bill on page 1, in line 37, by striking ``of the Kansas
children's cabinet and'';
      On page 4, in line 15, by striking ``children's cabinet'' and inserting ``endowment for youth
fund legislative oversight committee''; in line 20, by striking ``children's'' where it appears
for the last time; in line 21, by striking ``cabinet'' and inserting ``endowment for youth fund
legislative oversight committee''; in line 30, by striking ``children's''; in line 31, by striking
``cabinet'' and inserting ``endowment for youth fund legislative oversight committee'';
      On page 5, in line 12, by striking ``children's cabinet'' and inserting ``endowment for youth
fund legislative oversight committee''; in line 13, by striking ``children's cabinet'' and
inserting ``endowment for youth fund legislative oversight committee''; in line 16, by striking
``children's cabinet'' and inserting ``endowment for youth fund legislative oversight
committee'';
      On page 10, in line 24, by striking ``Kansas children's cabinet'' and inserting ``advisory
committee on children and families'';
      On page 12, by striking all in lines 11 through 43;
      By striking all on pages 13 and 14;
      On page 15, by striking all in lines 1 through 24;
      And by renumbering sections accordingly;
      On page 16, preceding line 32, by inserting new material as follows:
      ``New Sec  9. (a) The legislature must be prepared to respond timely but deliberately
to safeguard the public health and welfare of all Kansas children.
      (b) There is hereby created the Kansas endowment for youth fund legislative oversight
committee, hereinafter ''committee,`` to oversee the Kansas endowment for youth fund and
to make recommendations regarding the uses of the moneys transferred to the children's
initiatives fund and such other duties as may be prescribed by law.
      (c) The committee shall be composed of 12 members of the legislature appointed as
follows: Three members of the house of representatives appointed by the speaker of the
house of representatives; three members of the house of representatives appointed by the
minority leader of the house of representatives; three members of the senate appointed by
the president of the senate; and three members of the senate appointed by the minority
leader of the senate. The president of the senate shall designate a senator member to be
chairperson of the committee as provided in this section. The speaker of the house of
representatives shall designate a representative member to be chairperson of the committee
as provided in this section. The minority leader of the senate shall designate a senate member
to be vice-chairperson of the committee as provided in this section. The minority leader of
the house of representatives shall designate a representative member to be vice-chairperson
of the committee as provided in this section. The secretary of health and environment, the
secretary of social and rehabilitation services and the commissioner of education shall be
advisors to the committee.
      (d) A quorum of the committee shall be seven. All actions of the committee may be
taken by a majority of those present when there is a quorum. In even-numbered years the
chairperson of the committee shall be the designated member of the senate from the
convening of the regular session of that year until the convening of the regular session of
the next ensuing year. In odd-numbered years, the chairperson of the committee shall be
the designated member of the house of representatives from the convening of the regular
session in that year until the convening of the regular session in the next ensuing year. In
even-numbered years, the vice-chairperson of the committee shall be the designated
member of the house of representatives from the convening of the regular session in that
year until the convening of the regular session in the next ensuing year. In odd-numbered
years, the vice-chairperson of the committee shall be the designated member of the senate
from the convening of the regular session of that year until the convening of the regular
session of the next ensuing year. The vice-chairperson shall exercise all of the powers of the
chairperson in the absence of the chairperson.
      (e) The committee shall be designated a standing joint committee of the legislature and
shall have such powers and duties as provided by law. Funding of operations of the
committee shall be made from moneys appropriated to the legislature and expenditures of
the committee shall be approved by the legislative coordinating council. Administrative
support for the committee shall be provided by the division of legislative administrative
services.
      (f) The Kansas endowment for youth fund legislative oversight committee shall meet
on call of the chairperson as authorized by the legislative coordinating council. All such
meetings shall be held in Topeka unless authorized to be held in a different place by the
legislative coordinating council. Members of the committee shall receive compensation and
travel expenses and subsistence expenses or allowances as provided in K.S.A. 75-3212 and
amendments thereto, when attending meetings of such committee authorized by the
legislative coordinating council.'';
      And by renumbering sections accordingly;
      Also on page 16, in line 32, by striking ``, 38-''; in line 33, by striking ``1901'';
      On page 1, in the title, in line 14, by striking ``children's cabinet'' and inserting
``endowment for youth fund legislative oversight committee''; in line 17, by striking ``, 38-
1808 and 38-1901'' and inserting ``and 38-1808''.
 The motion failed and the amendment was rejected.
 Senator Tyson moved to amend the bill on page 22 of the typed version of the bill,
preceding line 22, by inserting the following material to read as follows:
      ``New Sec.  10. (a) On July 1, 2000, and on each July 1 thereafter, or as soon thereafter
as moneys are available, the director of accounts and reports shall transfer $10,000,000 from
the Kansas endowment for youth fund to the additional general state aid fund.
      (b) There is hereby established in the state treasury the additional general state aid fund
which shall be administered by the state board of education. All expenditures from the fund
shall be made in accordance with appropriation acts upon warrants of the director of
accounts and reports issued pursuant to vouchers approved by the chairperson of the state
board of education or by the designee of the state board of education. All expenditures from
the additional state aid fund during fiscal year 2000 shall be allocated and distributed school
districts in proportion to the amount of general state aid distributed under K.S.A. 72-6417
and amendments thereto. The additional state aid received by a district may be disposed of
as provided in subsection (a) of K.S.A. 72-6427 and amendments thereto.'';
      And by renumbering sections accordingly.
      On roll call, the vote was: Yeas 11, nays 22, present and passing 6; absent or not voting
1.
      Yeas: Bleeker, Brownlee, Clark, Gilstrap, Harrington, Huelskamp, Jordan, Pugh, Ranson,
Salmans, Tyson.
      Nays: Becker, Biggs, Bond, Corbin, Donovan, Emert, Goodwin, Hensley, Jones,
Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Praeger, Salisbury, Steffes, Steineger,
Umbarger, Vidricksen, Vratil.
      Present and passing: Barone, Downey, Feleciano, Gooch, Kerr, Stephens.
      Absent or not voting: Hardenburger.
      The motion failed and the amendment was rejected.
   On motion of Senator Emert the Senate adjourned until 1:00 p.m., Sunday, May 2, 1999.

HELEN A. MORELAND, Journal Clerk.

PAT SAVILLE, Secretary of Senate.