May 2, 1999

Journal of the Senate

SIXTY-SEVENTH DAY ______

Senate Chamber, Topeka, Kansas

Sunday, May 2, 1999--1:00 p.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 Senator Nancey Harrington:

Dear Lord,

In whom we live, and breath, and have our being.

I praise you for the freedom that is ours as a nation and a state.

Freedom that affords the opportunity to offer a prayer, in a public body
such as this, the Kansas State Senate.

Lord God, let us not forget the connection between political and moral
action.

That just as the anti - slavery Reformers understood:

``Politics rightly considered, is a branch of morals and cannot be deserted
innocently.''

I now pray for the Governor, Senate leadership, all Senators and House
members.

Bless each one with your guiding wisdom, give us encouragement and inner
strength to rightly serve the people of Kansas.

From one who knows your loving Grace, I pray this prayer in the Name
of Jesus your Son.

AMEN

COMMUNICATIONS FROM STATE OFFICERS
TREASURER'S OFFICE STATE OF KANSAS April 30, 1999 Tim Shallenburger, State Treasurer, submitted the Annual Report of the Kansas State
Treasurer's Office for fiscal year 1998.

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

MESSAGE FROM THE HOUSE
Announcing, the House adopts the conference committee report on HB 2015.

The House adopts the conference committee report on HB 2440.

The House adopts the conference committee report on SB 97.

The House adopts the conference committee report on SB 220.

The House adopts the conference committee report on SB 324.

The House adopts the conference committee report on SB 3.

The House concurs in Senate amendments to Senate Substitute for HB 2558.

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 3,
97, 220, 324; HB 2352; Sub HB 2469.

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on House
amendments to SB 3, 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 3, by striking lines 30 through 37 and inserting the following:

``Sec. 3. K.S.A. 1998 Supp. 40-2,103, as amended by section 5 of 1999 Senate Bill 108,
is hereby amended to read as follows: 40-2,103. The requirements of K.S.A. 40-2,100, 40-
2,101, 40-2,102, 40-2,104, 40-2,105, 40-2,114 and 40-2250, and amendments thereto and
K.S.A. 1998 Supp. 40-2,160 and sections 1 through 4 of 1999 Senate Bill 108, and section
1 and section 2 of this act, and amendments thereto, shall apply to all insurance policies,
subscriber contracts or certificates of insurance delivered, renewed or issued for delivery
within or outside of this state or used within this state by or for an individual who resides
or is employed in this state.'';

Also on page 3, by striking lines 38 through 43;

On page 4, by striking lines 1 through 18 and inserting the following:

``Sec. 4. K.S.A. 1998 Supp. 40-19c09, as amended by section 6 of 1999 Senate Bill 108,
is hereby amended to read as follows: 40-19c09. (a) Corporations organized under the
nonprofit medical and hospital service corporation act shall be subject to the provisions of
the Kansas general corporation code, articles 60 to 74, inclusive, of chapter 17 of the Kansas
Statutes Annotated, applicable to nonprofit corporations, to the provisions of K.S.A. 40-214,
40-215, 40-216, 40-218, 40-219, 40-222, 40-223, 40-224, 40-225, 40-226, 40-229, 40-230,
40-231, 40-235, 40-236, 40-237, 40-247, 40-248, 40-249, 40-250, 40-251, 40-252, 40-254,
40-2,100, 40-2,101, 40-2,102, 40-2,103, 40-2,104, 40-2,105, 40-2,116, 40-2,117, 40-2a01 et
seq., 40-2111 to 40-2116, inclusive, 40-2215 to 40-2220, inclusive, 40-2221a, 40-2221b, 40-
2229, 40-2230, 40-2250, 40-2251, 40-2253, 40-2254, 40-2401 to 40-2421, inclusive, and 40-
3301 to 40-3313, inclusive, K.S.A. 1998 Supp. 40-2,153, 40-2,154, 40-2,160, 40-2,161, 40-
2,163 ~~and~~, 40-2,164 and sections 1 through 4 of 1999 Senate Bill 108, and section 1 and
section 2 of this act, and amendments thereto, except as the context otherwise requires, and
shall not be subject to any other provisions of the insurance code except as expressly provided
in this act.

(b) No policy, agreement, contract or certificate issued by a corporation to which this
section applies shall contain a provision which excludes, limits or otherwise restricts coverage
because medicaid benefits as permitted by title XIX of the social security act of 1965 are or
may be available for the same accident or illness.

(c) Violation of subsection (b) shall be subject to the penalties prescribed by K.S.A. 40-
2407 and 40-2411, and amendments thereto.;''

Also on page 4, by striking lines 40 through 43 and inserting new sections 6 through 15
as follows:

``New Sec. 6. On and after January 1, 2000, for the purposes of sections 6 through 9
and amendments thereto:

(a) ``Adverse decision'' means a utilization review determination by a third-party
administrator, a health insurance plan, an insurer or a health care provider acting on behalf
of an insured that a proposed or delivered health care service which would otherwise be
covered under an insured's contract is not or was not medically necessary or the health care
treatment has been determined to be experimental or investigational and, (1) if the
requested service is provided in a manner that leaves the insured with a financial obligation
to the provider or providers of such services, or (2) the adverse decision is the reason for
the insured not receiving the requested services.

(b) ``Emergency medical condition'' means the sudden, and at the time, unexpected
onset of a health condition that requires immediate medical attention, where failure to
provide medical attention would result in a serious impairment to bodily functions, serious
dysfunction of a bodily organ or part or would place a person's health in serious jeopardy.

(c) ``External review organization'' means an entity that conducts independent external
reviews of adverse decisions pursuant to a contract with the commissioner. Such entity shall
have experience serving as the external quality review organization in health programs
administered by the state of Kansas, or be a nationally accredited external review
organization which utilizes health care providers actively engaged in the practice of their
profession in the state of Kansas who are qualified and credentialed with respect to the
health care service review. In the event no Kansas providers are qualified and credentialed
with respect to the review of any case, the external review organization shall have the
discretion to employ health care providers who actively engage in such health care provider's
practice outside the state of Kansas.

(d) ``Health insurance plan'' means any hospital or medical expense policy, health,
hospital or medical service corporation contract, and a plan provided by a municipal group-
funded pool, or a health maintenance organization contract offered by an employer or any
certificate issued under any such policies, contracts or plans.

(e) ``Insured'' means the beneficiary of any health insurance company, fraternal benefit
society, health maintenance organization, nonprofit hospital and medical service
corporation, municipal group funded pool, and the self-funded coverage established by the
state of Kansas, or any hospital or medical expense, health, hospital or medical service
corporation contract or a plan provided by a municipal group-funded pool.

(f) ``Insurer'' means any health insurance company, fraternal benefit society, health
maintenance organization, nonprofit hospital and medical service corporation, provider
sponsored organizations, municipal group-funded pool and the self-funded coverage
established by the state of Kansas for its employees.

New Sec. 7. On and after January 1, 2000:

(a) The provisions of sections 6 through 9 and amendments thereto shall not apply to
any policy or certificate which provides coverage for any specified disease, specified accident
or accident only coverage, credit, dental, disability income, hospital indemnity, long-term
care insurance as defined by K.S.A. 40-227, and amendments thereto, vision care or any
other limited supplemental benefit nor to any medicare supplement policy of insurance as
defined by the commissioner of insurance by rule and regulation, coverage under a plan
through medicare, medicaid, or the federal employees health benefits program, any coverage
issues as a supplement to liability insurance, workers compensation or similar insurance,
automobile medical-payment insurance or any insurance under which benefits are payable
with or without regard to fault, whether written on a group, blanket or individual basis.

(b) The right to external review under sections 6 through 9, and amendments thereto,
shall not be construed to change the terms of coverage under a health insurance plan or
insurance policy.

(c) The insurer or health insurance plan shall provide written notice to the insured of
a final adverse decision and the opportunity for requesting an external review.

(d) The insured has the right to request an independent external review of an adverse
decision by a health insurance plan or insurer when: (1) The insured has exhausted all
available internal review procedures provided by the health insurance plan or insurer, unless
the insured has an emergency medical condition, in which case an expedited procedure is
used; or (2) the insured has not received a final decision from the insurer within 60 days of
seeking the internal review, except to the extent that the delay was requested by the insured.

(e) Within 90 days of receipt of an adverse decision by a health insurance plan or an
insurer, any request for external review shall be made in writing to the commissioner from
the following persons: (1) The insured; (2) the treating physician or health care provider
acting on behalf on the insured with written authorization from the insured; or (3) a legally
authorized designee of the insured.

(f) The insured shall provide all information in the possession of the insured pertaining
to the adverse decision in order for the commissioner to make a preliminary determination
for an external review. The insured also shall provide the commissioner with an appeal form,
and a fully executed release for the commissioner and the external review organization to
obtain any necessary medical records from the insurer or health insurance plan and any
other relevant provider.

(g) In responding to the commissioner, the insurer or health insurance plan shall provide
a copy of the adverse decision given to the insured and all medical and other records
pertaining to the insured's claim within five business days of the request of the
commissioner.

(h) The confidentiality of any medical information submitted by the insured, on behalf
of the insured, insurer or health insurance plan, shall be maintained pursuant to applicable
state and federal laws.

New Sec. 8. On and after January 1, 2000:

(a) The commissioner shall:

(1) Negotiate contracts with external review organizations which are eligible to conduct
independent review of the adverse decision by a health insurance plan or insurer;

(2) allow the insurer or the health insurance plan, an insured or treating physician or
health care provider acting on behalf of the insured, or legally authorized designee filing a
request for external review to provide additional written information as may be relevant for
the commissioner to make a final decision on whether the request qualified for external
review;

(3) make a decision on a request for external review within 10 business days after
receiving all necessary information;

(4) notify the insured and treating physician or health care provider acting on behalf of
the insured, or legally authorized designee, and insurer or health insurance plan in writing
that a request for external review will or will not be granted; and

(5) design and implement an expedited procedure for use in an emergency medical
condition for purposes of the external review organization rendering a decision.

(b) The external review organization as defined in subsection (c) of section 6, and
amendments thereto, shall provide that all reviews completed pursuant to sections 6 through
9, and amendments thereto, are conducted by qualified and credentialed health care
providers with respect to the health care service under review and who have no conflict of
interest relating to the performance of the external review organization's duties in sections
6 through 9, and amendments thereto.

(c) The external review organization shall issue a written decision to the insured and
concurrently send a copy of such decision to the commissioner including the basis and
rationale for its decision within 30 business days. The standard of review shall be whether
the health care service denied by the insurer or health insurance plan was medically
necessary under the terms of the insured's contract. In reviews regarding experimental or
investigational treatment, the standard of review shall be whether the health care service
denied by the insurer or health insurance plan was covered or excluded from coverage under
the terms of the insured's contract.

(d) The external review organization shall provide expedited resolution when an
emergency medical condition exists, and shall resolve all issues within seven business days.

(e) The external review organization shall maintain and report such data as may be
required by the commissioner in order to assess the effectiveness of the external review
process.

(f) No external review organization nor any individual working on behalf of such
organization shall be liable in damages to any insured, health insurance plan or insurer for
any opinion rendered as part of an external review conducted pursuant to sections 6 through
9, and amendments thereto.

(g) The external review organization shall maintain confidentiality of the medical records
of the insured in accordance to state and federal law.

New Sec. 9. On and after January 1, 2000:

(a) The decision of the external review organization may be reviewed directly by the
district court at the request of either the insured, insurer or health insurance plan. The
review by the district court shall be de novo. The decision of the external review organization
shall not preclude the insured, insurer or health insurance plan from exercising other
available remedies applicable under state or federal law. Seeking a review by the district
court or any other available remedies exercised by the insured, insurer or health insurance
plan after the decision of the external review organization will not stay the external review
organization's decision as to the payment or provision of services to be rendered during the
pendency of the review by the insurer or health insurance plan. All material used in an
external review and the decision of the external review organization as a result of the external
review shall be deemed admissible in any subsequent litigation.

(b) In no event shall more than one external review be available during the same year
for any request arising out of the same set of facts. An insured may not pursue, either
concurrently or sequentially, an external review process under both a federal and state law.
In the event external review processes are available pursuant to federal law and this act, the
insured shall have the option of designating which external review process will be utilized.

(c) The commissioner of insurance is hereby authorized to negotiate and enter into
contracts necessary to perform the duties required by sections 6 through 9, and amendments
thereto.

(d) The commissioner of insurance shall adopt rules and regulations necessary to carry
out the purposes of sections 6 through 9, and amendments thereto. The rules and regulations
shall ensure that the commissioner is able to provide for an effective and efficient external
review of health care services.

Sec. 10. On and after January 1, 2000, K.S.A. 8-173 is hereby amended to read as
follows: 8-173. (a) An application for registration of a vehicle as provided in article 1 of
chapter 8 of the Kansas Statutes Annotated and amendments thereto, shall not be accepted
unless the person making such application shall exhibit:

(1) A receipt showing that such person has paid all personal property taxes levied against
such person for the preceding year, including taxes upon such vehicle, except that if such
application is made before June 21 such receipt need show payment of only one-half the
preceding year's tax; or

(2) evidence that such vehicle was assessed for taxation purposes by a state agency, or
was assessed as stock in trade of a merchant or manufacturer or was exempt from taxation
under the laws of this state.

(b) An application for registration of a vehicle as provided in article 1 of chapter 8 of
the Kansas Statutes Annotated shall not be accepted if the records of the county treasurer
show that the applicant is delinquent and owes personal property taxes levied against the
applicant for any preceding year.

(c) An application for registration or renewal of registration of a motor vehicle shall not
be accepted until the applicant signs a certification, provided by the director of motor
vehicles, certifying that the applicant has and will maintain, during the period of registration,
the required insurance, self insurance or other financial security required pursuant to K.S.A.
40-3104 and amendments thereto.

(d) An application for registration or renewal of registration of a vehicle shall not be
accepted if the applicant is unable to provide proof of the insurance, self insurance or other
financial security required by article 31 of chapter 40 of the Kansas Statutes Annotated.
Proof of insurance shall be verified by examination of the insurance card issued by an
insurance company, a certificate of self insurance issued by the commissioner, a binder of
insurance, a certificate of insurance, a motor carrier identification number issued by the
state corporation commission, proof of insurance for vehicles covered under a fleet policy, a
commercial policy covering more than one vehicle or a policy of insurance required by K.S.A.
40-3104, and amendments thereto and for vehicles used as part of a drivers education
program, a dealership contract and a copy of a motor vehicle liability insurance policy issued
to a school district or accredited nonpublic school. Examination of a photocopy of any of
these documents shall suffice for verification of mail registration or renewals.

Sec. 11. On and after January 1, 2000, K.S.A. 1998 Supp. 40-3104 is hereby amended
to read as follows: 40-3104. (a) Every owner shall provide motor vehicle liability insurance
coverage in accordance with the provisions of this act for every motor vehicle owned by
such person, unless such motor vehicle: (1) Is included under an approved self-insurance
plan as provided in subsection (f); (2) is used as a driver training motor vehicle, as defined
in K.S.A. 72-5015, and amendments thereto, in an approved driver training course by a
school district or an accredited nonpublic school under an agreement with a motor vehicle
dealer, and such motor vehicle liability insurance coverage is provided by the school district
or accredited nonpublic school; (3) is included under a qualified plan of self-insurance
approved by an agency of the state in which such motor vehicle is registered and the form
prescribed in subsection (b) of K.S.A. 40-3106, and amendments thereto, has been filed; or
(4) is expressly exempted from the provisions of this act.

(b) An owner of an uninsured motor vehicle shall not permit the operation thereof upon
a highway or upon property open to use by the public, unless such motor vehicle is expressly
exempted from the provisions of this act.

(c) No person shall knowingly drive an uninsured motor vehicle upon a highway or upon
property open to use by the public, unless such motor vehicle is expressly exempted from
the provisions of this act.

(d) Any person operating a motor vehicle upon a highway or upon property open to use
by the public shall display, upon demand, evidence of financial security to a law enforcement
officer. The law enforcement officer shall issue a citation to any person who fails to display
evidence of financial security upon such demand. The law enforcement officer shall attach
a copy of the insurance verification form prescribed by the secretary of revenue to the copy
of the citation forwarded to the court.

No citation shall be issued to any person for failure to provide proof of financial security
when evidence of financial security meeting the standards of subsection (e) is displayed
upon demand of a law enforcement officer. Whenever the authenticity of such evidence is
questionable, the law enforcement officer may initiate the preparation of the insurance
verification form prescribed by the secretary of revenue by recording information from the
evidence of financial security displayed. The officer shall immediately forward the form to
the department of revenue, and the department shall proceed with verification in the
manner prescribed in the following paragraph. Upon return of a form indicating that
insurance was not in force on the date indicated on the form, the department shall
immediately forward a copy of the form to the law enforcement officer initiating preparation
of the form.

(e) Unless the insurance company subsequently submits an insurance verification form
indicating that insurance was not in force, no person charged with violating subsections (b),
(c) or (d) shall be convicted if such person produces in court, within 10 days of the date of
arrest or of issuance of the citation, evidence of financial security for the motor vehicle
operated, which was valid at the time of arrest or of issuance of the citation. For the purpose
of this subsection, evidence of financial security shall be provided by a policy of motor
vehicle liability insurance, an identification card or certificate of insurance issued to the
policyholder by the insurer which provides the name of the insurer, the policy number and
the effective and expiration dates of the policy, or a certificate of self-insurance signed by
the commissioner of insurance. Upon the production in court of evidence of financial
security, the court shall record the information displayed thereon on the insurance
verification form prescribed by the secretary of revenue, immediately forward such form to
the department of revenue, and stay any further proceedings on the matter pending a
request from the prosecuting attorney that the matter be set for trial. Upon receipt of such
form the department shall mail the form to the named insurance company for verification
that insurance was in force on the date indicated on the form. It shall be the duty of insurance
companies to notify the department within 30 calendar days of the receipt of such forms of
any insurance that was not in force on the date specified. Upon return of any form to the
department indicating that insurance was not in force on such date, the department shall
immediately forward a copy of such form to the office of the prosecuting attorney or the
city clerk of the municipality in which such prosecution is pending when the prosecuting
attorney is not ascertainable. Receipt of any completed form indicating that insurance was
not in effect on the date specified shall be prima facie evidence of failure to provide proof
of financial security and violation of this section. A request that the matter be set for trial
shall be made immediately following the receipt by the prosecuting attorney of a copy of
the form from the department of revenue indicating that insurance was not in force. Any
charge of violating subsection (b), (c) or (d) shall be dismissed if no request for a trial setting
has been made within 60 days of the date evidence of financial security was produced in
court.

(f) Any person in whose name more than 25 motor vehicles are registered in Kansas
may qualify as a self-insurer by obtaining a certificate of self-insurance from the
commissioner of insurance. The certificate of self-insurance issued by the commissioner
shall cover such owned vehicles and those vehicles, registered in Kansas, leased to such
person if the lease agreement requires that motor vehicle liability insurance on the vehicles
be provided by the lessee. Upon application of any such person, the commissioner of
insurance may issue a certificate of self-insurance, if the commissioner is satisfied that such
person is possessed and will continue to be possessed of ability to pay any liability imposed
by law against such person arising out of the ownership, operation, maintenance or use of
any motor vehicle described in this subsection. A self-insurer shall provide liability coverage
subject to the provisions of subsection (e) of K.S.A. 40-3107, and amendments thereto,
arising out of the ownership, operation, maintenance or use of a self-insured motor vehicle
in those instances where the lessee or the rental driver, if not the lessee, does not have a
motor vehicle liability insurance policy or insurance coverage pursuant to a motor vehicle
liability insurance policy or certificate of insurance or such insurance policy for such leased
or rented vehicle. Such liability coverage shall be provided to any person operating a self-
insured motor vehicle with the expressed or implied consent of the self-insurer.

Upon notice and a hearing in accordance with the provisions of the Kansas administrative
procedure act, the commissioner of insurance may cancel a certificate of self-insurance upon
reasonable grounds. Failure to provide liability coverage or personal injury protection
benefits required by K.S.A. 40-3107 and 40-3109, and amendments thereto, or pay any
liability imposed by law arising out of the ownership, operation, maintenance or use of a
motor vehicle registered in such self-insurer's name, or to otherwise comply with the
requirements of this subsection shall constitute reasonable grounds for the cancellation of
a certificate of self-insurance. Reasonable grounds shall not exist unless such objectionable
activity occurs with such frequency as to indicate a general business practice.

Self-insureds shall investigate claims in a reasonably prompt manner, handle such claims
in a reasonable manner based on available information and effectuate prompt, fair and
equitable settlement of claims in which liability has become reasonably clear.

As used in this subsection, ``liability imposed by law'' means the stated limits of liability
as provided under subsection (e) of K.S.A. 40-3107, and amendments thereto.

Nothing in this subsection shall preclude a self-insurer from pursuing all rights of
subrogation against another person or persons.

(g) (1) Any person violating any provision of this section shall be guilty of a class B
misdemeanor and shall be subject to a fine of not less than ~~$200~~ $300 nor more than $1,000
or confinement in the county jail for a term of not more than six months, or both such fine
and confinement.

(2) Any person convicted of violating any provision of this section within three years of
any such prior conviction shall be guilty of a class A misdemeanor and shall be subject to a
fine of not less than $800 nor more than $2,500.

(h) In addition to any other penalties provided by this act for failure to have or maintain
financial security in effect, the director, upon receipt of a report required by K.S.A. 8-1607
or 8-1611, and amendments thereto, or a denial of such insurance by the insurance company
listed on the form prescribed by the secretary of revenue pursuant to subsection (d) of this
section, shall, upon notice and hearing as provided by K.S.A. 40-3118, and amendments
thereto:

(1) Suspend:

(A) The license of each driver in any manner involved in the accident;

(B) the license of the owner of each motor vehicle involved in such accident, unless the
vehicle was stolen at the time of the accident, proof of which must be established by the
owner of the motor vehicle. Theft by a member of the vehicle owner's immediate family
under the age of 18 years shall not constitute a stolen vehicle for the purposes of this section;

(C) if the driver is a nonresident, the privilege of operating a motor vehicle within this
state; or

(D) if such owner is a nonresident, the privilege of such owner to operate or permit the
operation within this state of any motor vehicle owned by such owner; and

(2) revoke the registration of all vehicles owned by the owner of each motor vehicle
involved in such accident.

(i) The suspension or revocation requirements in subsection (h) shall not apply:

(1) To the driver or owner if the owner had in effect at the time of the accident an
automobile liability policy as required by K.S.A. 40-3107, and amendments thereto, with
respect to the vehicle involved in the accident;

(2) to the driver, if not the owner of the vehicle involved in the accident, if there was
in effect at the time of the accident an automobile liability policy with respect to such driver's
driving of vehicles not owned by such driver;

(3) to any self-insurer as defined by subsection (u) of K.S.A. 40-3103, and amendments
thereto;

(4) to the driver or owner of any vehicle involved in the accident which was exempt
from the provisions of this act pursuant to K.S.A. 40-3105, and amendments thereto;

(5) to the owner of a vehicle described in subsection (a)(2).

(j) For the purposes of provisions (1) and (2) of subsection (i) of this section, the director
may require verification by an owner's or driver's insurance company or agent thereof that
there was in effect at the time of the accident an automobile liability policy as required in
this act.

Any suspension or revocation effected hereunder shall remain in effect until satisfactory
proof of financial security has been filed with the director as required by subsection (d) of
K.S.A. 40-3118, and amendments thereto, and such person has been released from liability
or is a party to an action to determine liability pursuant to which the court temporarily stays
such suspension pending final disposition of such action, has entered into an agreement for
the payment of damages, or has been finally adjudicated not to be liable in respect to such
accident and evidence of any such fact has been filed with the director and has paid the
reinstatement fee herein prescribed. Such reinstatement fee shall be ~~$25~~ $100 except that
if the registration of a motor vehicle of any owner is revoked within one year following a
prior revocation of the registration of a motor vehicle of such owner under the provisions
of this act such fee shall be ~~$75~~ $300.

(k) The provisions of this section shall not apply to motor carriers of property or
passengers regulated by the corporation commission of the state of Kansas.

(l) The provisions of subsection (d) shall not apply to vehicle dealers, as defined in K.S.A.
8-2401, and amendments thereto, for vehicles being offered for sale by such dealers.

Sec. 12. On and after January 1, 2000, K.S.A. 1998 Supp. 40-3118 is hereby amended
to read as follows: 40-3118. (a) No motor vehicle shall be registered or reregistered in this
state unless the owner, at the time of registration, has in effect a policy of motor vehicle
liability insurance covering such motor vehicle, as provided in this act, or is a self-insurer
thereof, or the motor vehicle is used as a driver training motor vehicle, as defined in K.S.A.
72-5015, and amendments thereto, in an approved driver training course by a school district
or an accredited nonpublic school under an agreement with a motor vehicle dealer, and
such policy of motor vehicle liability insurance is provided by the school district or accredited
nonpublic school. As used in this section, the term ``financial security'' means such policy
or self-insurance. The director shall require that the owner certify and provide verification
of financial security, in the manner prescribed by K.S.A. 8-173, and amendments thereto,
that the owner has such financial security, and the owner of each motor vehicle registered
in this state shall maintain financial security continuously throughout the period of
registration. In addition, when an owner certifies that such financial security is a motor
vehicle liability insurance policy meeting the requirements of this act, the director may
require that the owner or owner's insurance company produce records to prove the fact
that such insurance was in effect at the time the vehicle was registered and has been
maintained continuously from that date. Failure to produce such records shall be prima
facie evidence that no financial security exists with regard to the vehicle concerned. It shall
be the duty of insurance companies, upon the request of the director, to notify the director
within 30 calendar days of the date of the receipt of such request by the director of any
insurance that was not in effect on the date of registration and maintained continuously
from that date.

(b) Except as otherwise provided in K.S.A. 40-276, 40-276a and 40-277, and
amendments thereto, and except for termination of insurance resulting from nonpayment
of premium or upon the request for cancellation by the insured, no motor vehicle liability
insurance policy, or any renewal thereof, shall be terminated by cancellation or failure to
renew by the insurer until at least 30 days after mailing a notice of termination, by certified
or registered mail or United States post office certificate of mailing, to the named insured
at the latest address filed with the insurer by or on behalf of the insured. Time of the effective
date and hour of termination stated in the notice shall become the end of the policy period.
Every such notice of termination sent to the insured for any cause whatsoever shall include
on the face of the notice a statement that financial security for every motor vehicle covered
by the policy is required to be maintained continuously throughout the registration period,
that the operation of any such motor vehicle without maintaining continuous financial
security therefor is a class B misdemeanor and shall be subject to a fine of not less than $300
and not more than $1,000 and that the registration for any such motor vehicle for which
continuous financial security is not provided is subject to suspension and the driver's license
of the owner thereof is subject to suspension.

(c) The director of vehicles shall verify a sufficient number of insurance certifications
each calendar year as the director deems necessary to insure compliance with the provisions
of this act. The owner or owner's insurance company shall verify the accuracy of any owner's
certification upon request, as provided in subsection (a).

(d) In addition to any other requirements of this act, the director shall require a person
to acquire insurance and for such person's insurance company to maintain on file with the
division evidence of such insurance for a period of one year when a person has been
convicted in this or another state of any of the violations enumerated in K.S.A. 8-285, and
amendments thereto.

The director shall also require any driver whose driving privileges have been suspended
pursuant to this section to maintain such evidence of insurance as required above.

The company of the insured shall immediately mail notice to the director whenever any
policy required by this subsection to be on file with the division is terminated by the insured
or the insurer for any reason. The receipt by the director of such termination shall be prima
facie evidence that no financial security exists with regard to the person concerned.

No cancellation notice shall be sent to the director if the insured adds or deletes a vehicle,
adds or deletes a driver, renews a policy or is issued a new policy by the same company.
No cancellation notice shall be sent to the director prior to the date the policy is terminated
if the company allows a grace period for payment until such grace period has expired and
the policy is actually terminated.

For the purposes of this act, the term ``conviction'' includes pleading guilty or nolo
contendere, being convicted or being found guilty of any violation enumerated in this
subsection without regard to whether sentence was suspended or probation granted. A
forfeiture of bail, bond or collateral deposited to secure a defendant's appearance in court,
which forfeiture has not been vacated, shall be equivalent to a conviction.

The requirements of this subsection shall apply whether or not such person owns a motor
vehicle.

(e) Whenever the director shall receive prima facie evidence, as prescribed by this
section, that continuous financial security covering any motor vehicle registered in this state
is not in effect, the director shall notify the owner by registered or certified mail or United
States post office certificate of mailing that, at the end of 30 days after the notice is mailed,
the registration for such motor vehicle and the driving privileges of the owner of the vehicle
shall be suspended or revoked, pursuant to such rules and regulations as the secretary of
revenue shall adopt, unless within 10 days after the notice is mailed: (1) Such owner shall
demonstrate proof of continuous financial security covering such vehicle to the satisfaction
of the director; or (2) such owner shall mail a written request which is postmarked within
10 days after the notice is mailed requesting a hearing with the director. Upon receipt of a
timely request for a hearing, the director shall afford such person an opportunity for hearing
within the time and in the manner provided in K.S.A. 8-255 and amendments thereto. If,
within the ten-day period or at the hearing, such owner is unable to demonstrate proof of
continuous financial security covering the motor vehicle in question, the director shall revoke
the registration of such motor vehicle and suspend the driving privileges of the owner of
the vehicle.

(f) Whenever the registration of a motor vehicle or the driving privileges of the owner
of the vehicle are suspended or revoked for failure of the owner to maintain continuous
financial security, such suspension or revocation shall remain in effect until satisfactory proof
of insurance has been filed with the director as required by subsection (d) and a
reinstatement fee in the amount herein prescribed is paid to the division of vehicles. Such
reinstatement fee shall be in the amount of ~~$25~~ $100 except that if the registration of a
motor vehicle of any owner is revoked within one year following a prior revocation of the
registration of a motor vehicle of such owner under the provisions of this act such fee shall
be in the amount of ~~$75~~ $300. The division of vehicles shall, at least monthly, deposit such
fees with the state treasurer, who shall credit such moneys to the state highway fund.

(g) In no case shall any motor vehicle, the registration of which has been revoked for
failure to have continuous financial security, be reregistered in the name of the owner
thereof, the owner's spouse, parent or child or any member of the same household, until
the owner complies with subsection (f). In the event the registration plate has expired, no
new plate shall be issued until the motor vehicle owner complies with the reinstatement
requirements as required by this act.

(h) Evidence that an owner of a motor vehicle, registered or required to be registered
in this state, has operated or permitted such motor vehicle to be operated in this state
without having in force and effect the financial security required by this act for such vehicle,
together with proof of records of the division of vehicles indicating that the owner did not
have such financial security, shall be prima facie evidence that the owner did at the time
and place alleged, operate or permit such motor vehicle to be operated without having in
full force and effect financial security required by the provisions of this act.

(i) Any owner of a motor vehicle registered or required to be registered in this state
who shall make a false certification concerning financial security for the operation of such
motor vehicle as required by this act, shall be guilty of a class A misdemeanor. Any person,
firm or corporation giving false information to the director concerning another's financial
security for the operation of a motor vehicle registered or required to be registered in this
state, knowing or having reason to believe that such information is false, shall be guilty of a
class A misdemeanor.

(j) The director shall administer and enforce the provisions of this act relating to the
registration of motor vehicles, and the secretary of revenue shall adopt such rules and
regulations as may be necessary for its administration.

(k) Whenever any person has made application for insurance coverage and such
applicant has submitted payment or partial payment with such application, the insurance
company, if payment accompanied the application and if insurance coverage is denied, shall
refund the unearned portion of the payment to the applicant or agent with the notice of
denial of coverage. If payment did not accompany the application to the insurance company
but was made to the agent, the agent shall refund the unearned portion of the payment to
the applicant upon receipt of the company's notice of denial.

(l) For the purpose of this act, ``declination of insurance coverage'' means a final denial,
in whole or in part, by an insurance company or agent of requested insurance coverage.

Sec. 13. K.S.A. 1998 Supp. 40-2,103, as amended by section 5 of 1999 Senate Bill 108,
40-1909 and 40-19c09, as amended by section 6 of 1999 Senate Bill 108, are hereby
repealed.

Sec. 14. On and after January 1, 2000, K.S.A. 8-173 and K.S.A. 1998 Supp. 40-3104
and 40-3118 are hereby repealed.

Sec. 15. This act shall take effect and be in force from and after its publication in the
statute book.'';

In the title in line 12, by striking ``accident and health''; also in line 12, by striking all
after the semicolon; by striking lines 13 through 16, in line 17 by striking all before the
semicolon and inserting ``concerning the regulation thereof; amending K.S.A. 8-173 and
K.S.A. 1998 Supp. 40-2,103, as amended by section 5 of 1999 Senate Bill 108, 40-19c09, as
amended by section 6 of 1999 Senate Bill 108, 40-3104 and 40-3118 and repealing the
existing sections''

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

Robert Tomlinson

Cindy Empson

Nancy Kirk
Conferees on the part of House

Don Steffes

Sandy Praeger

Paul Feleciano, Jr.
Conferees on part of Senate

Senator Steffes moved the Senate adopt the Conference Committee Report on SB 3.

Senator Barone offered a substitute motion to not adopt and requested an new conference
committee be appointed. The motion failed.

The Senate returned to consideration of the motion by Senator Steffes to adopt the
conference committee report.

On roll call, the vote was: Yeas 31, nays 8, present and passing 0; absent or not voting 1.

Yeas: Becker, Bleeker, Bond, Brownlee, Clark, Donovan, Downey, Emert, Feleciano,
Gilstrap, Goodwin, Harrington, Hensley, Huelskamp, Jones, Jordan, Kerr, Langworthy,
Lawrence, Morris, Oleen, Praeger, Pugh, Ranson, Salisbury, Salmans, Steffes, Tyson,
Umbarger, Vidricksen, Vratil.

Nays: Barone, Biggs, Corbin, Gooch, Lee, Petty, Steineger, Stephens.

Absent or not voting: Hardenburger.

The Conference Committee report was adopted.

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on House
amendments to SB 97, 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 2, in line 7, by striking ``other than an individual,''; in line 8, after ``officer'' by
inserting ``or any person in a representative capacity so long as such person is not an
attorney''; by striking all in lines 41 through 43;

On page 3, by striking all in lines 1 through 31 and inserting the following:

``Sec. 3. K.S.A. 61-2713 is hereby amended to read as follows: 61-2713. (a) The petition
shall be in substantially the following form:

In the District Court of ________ County, Kansas.

Plaintiff
vs.

Defendant

No.

[qr

PETITION PURSUANT TO CHAPTER 61 OF THE KANSAS STATUTES
ANNOTATED

Statement of claim:

I, ________, having read the instruction below, hereby assert the following claim
against ________, defendant:

Demand for judgment:

Based on the claim stated above, judgment is demanded against defendant as follows:

1. Payment of $________, plus interest, costs and any damages awarded under
K.S.A. 60-2610 and amendments thereto.

2. Recovery of the following described personal property, plus costs: ________.
This property has an estimated value of $________.

Instructions to plaintiff:

1. State the claim you have against the defendant in the space provided. Be clear and
concise.

2. Your total claim against defendant may not exceed $1,800, not including interest,
costs and any damages awarded under K.S.A. 60-2610 and amendments thereto. If you are
seeking the recovery of personal property, the value of that property shall be based on your
estimate of its value under oath.

3. You must be present in person at the hearing in order to avoid default judgment
against you on any claim defendant may have which arises out of the transaction or
occurrence which is the subject to your claim against the defendant.

4. You must make demand for judgment in one or both of the spaces provided above.

5. Except as provided by law, neither you nor the defendant is permitted to appear with
an attorney at the hearing.

6. You may not file more than 10 small claims under the small claims procedure act in
this court during any calendar year.

7. After completing this form, you must subscribe to the following oath:

I, ________, hereby swear that, to the best of my knowledge and belief, the foregoing
claim asserted against the defendant (including the estimate of value of any property sought
to be recovered) is a just and true statement, exclusive of any valid claim or defense which
defendant may have.

[Signature] ____________

Plaintiff
Subscribed and sworn to before me this ________ day of ________, 19__.

[Signature] ________________

Judge (clerk or notary)

(b) The summons shall be in substantially the following form:

In the District Court of ________ County, Kansas.

Plaintiff
vs.

Defendant

No.

[qr

SUMMONS (Small Claims Procedure) To the above-named defendant:

You are hereby notified that the above-named plaintiff has filed a claim against you under
the small claims procedure of this court. The statement of plaintiff's claim and demand for
judgment against you are set forth in the petition which is served upon you with this
summons.

A trial will be held on this matter at __ o'clock __m. on the ____ day of

,

19__, at ____________________.

(Place of hearing and address)
You must be present in person at the trial or a judgment by default will be entered against
you. Except as otherwise provided by law, neither you nor the plaintiff is permitted to appear
with an attorney.

If your defense is supported by witnesses, books, receipts or other papers, you should
bring them with you at the time of the hearing. If you wish to have witnesses summoned,
see the judge or clerk of the court at once for assistance.

If you admit the claim, but desire additional time to satisfy plaintiff's demands, you must
be present at the trial and explain the circumstances to the court.

If you have a claim against the plaintiff, which arises out of the transaction or occurrence
which is the subject of plaintiff's claim and your claim does not exceed $1,800, you must
complete the form for ``Defendant's Claim,'' which accompanies this summons, and return
it to the judge or clerk of the court on or before the time set for the trial. If your claim
against plaintiff exceeds $1,800, you may complete and return the form for ``Defendant's
Claim'' on or before the time set for trial.

RETURN ON SERVICE OF SUMMONS I hereby certify that I have served this summons:

(1) Personal service. By delivering a copy of the summons and a copy of the petition to
each of the following defendants on the dates indicated:

________, 19__, ________, 19__

(2) Residence service. By leaving a copy of the summons and a copy of the petition at
the usual place of residence of each of the following defendants on the dates indicated:

________, 19__, ________, 19__

(3) No service. The following defendants were not found in this county:

Dated: ________.

____________________

(Signature and Title of Officer)
(c) The defendant's claim shall be in substantially the following form:

In the District Court of ________ County, Kansas.

Plaintiff
vs.

Defendant

No.

[qr

DEFENDANT'S CLAIM Instructions:

1. As stated in the summons, if you have a claim against the plaintiff which arises out
of the transaction or occurrence which is the subject of plaintiff's claim and your claim does
not exceed $1,800, you must state your claim in the space provided below. If your claim
against the plaintiff exceeds $1,800, you may state your claim in the space provided below.
In determining whether or not your claim against the plaintiff exceeds $1,800, do not include
interest, costs and any damages under K.S.A. 60-2610 and amendments thereto, but do
include the value of any personal property sought to be recovered as determined by your
estimate of its value under oath.

2. Be clear and concise in stating your claim.

3. If the value of your claim exceeds $1,800 (not including interest, costs and any
damages awarded under K.S.A. 60-2610 and amendments thereto, but including the value
of any personal property sought to be recovered, as determined by your estimate of its value
under oath), the court must decide whether you may pursue your entire claim or only that
portion not exceeding $1,800.

4. If your claim exceeds $1,800 and the court determines that you may not pursue the
entire claim at the hearing, you have three alternatives: (1) Make no demand for judgment
and reserve the right to pursue your entire claim in a court of competent jurisdiction; (2)
make demand for judgment of that portion of your claim which does not exceed $1,800 and
reserve the right to bring an action in a court of competent jurisdiction for any amount in
excess thereof; or (3) make demand for judgment of that portion of your claim which does
not exceed $1,800 and waive your right to recover any excess.

5. When completed, this form must be filed with the judge or the clerk of the court on
or before the time stated in the summons for the trial.

Statement of claim:

I, ________, having read the instructions above, assert the following claim against
________, plaintiff:

Demand for judgment:

Based on the claim stated above, judgment is demanded against plaintiff as follows:

1. Payment of $____, plus interest, costs and any damages awarded under K.S.A. 60-
2610 and amendments thereto.

2. Recovery of the following described personal property, plus costs:

This property has an estimated value of $____.

I, ________, hereby swear that, to the best of my knowledge and belief, the above
claim asserted against the plaintiff (including the estimate of value of any property sought
to be recovered) is a just and true statement.

[Signature] ____________

Plaintiff
Subscribed and sworn to before me this ____ day of ________, 19__.

[Signature] ____________________

Judge (clerk or notary)'';
Also on page 3, in line 32, by striking ``61-2714'' and inserting ``61-2713'';

On page 1, in the title, in line 15, by striking ``61-2714'' and inserting ``61-2713'';

\ And your committee on conference recommends the adoption of this report.
Michael O'Neal
Tim Carmody
Janice L. Pauls
Conferees on the part of House
Tim Emert
Edward W. Pugh
Greta Goodwin
Conferees on part of Senate

Senator Emert moved the Senate adopt the Conference Committee Report on SB 97.

On roll call, the vote was: Yeas 38, nays 1, 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.

Nays: Vratil.

Absent or not voting: Hardenburger.

The Conference Committee report was adopted.

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on House
amendments to SB 220, 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, by striking all in lines 16 through 43;

By striking all on pages 2 and 3;

On page 4 by striking all in lines 1 through 14 and inserting the following:

``Section 1. K.S.A. 60-612 is hereby amended to read as follows: 60-612. (a) Without
changing venue, a judge may conduct any hearing or nonjury trial in any county agreed
upon by all parties who are not in default.

(b) If the court finds on motion of any party, that the county where an action was filed
does not have a courtroom or other suitable facility which conforms to section 11 of the
Americans with disabilities act accessibility guidelines for buildings and facilities (ADAAG)
adopted by 28 CFR 36.406 and incorporated in appendix A thereto, as in effect on July 1,
1999, and that such failure to conform would prohibit or limit the participation of a person
material to the proceeding, the judge, without changing venue, may conduct any hearing or
trial in any county with an accessible courtroom.

(c) If the court finds, on motion of any person at least 20 days before the hearing or
trial, that the county where an action was filed does not have a courtroom or other suitable
facility which conforms to section 11 of the Americans with disabilities act accessibility
guidelines for buildings and facilities (ADAAG) adopted by 28 CFR 36.406 and incorporated
in appendix A thereto, as in effect on July 1, 1999, and that such failure to conform would
prohibit or limit the attendance of any person, the judge, without changing venue, may
conduct the hearing or trial in any county with an accessible courtroom. Notice of the change
of the location shall be given to the parties at least 10 days prior to the date of the first
proceeding at the alternate location.

Sec. 2. K.S.A. 60-612 is hereby repealed.'';

Also on page 4, by renumbering Section 5 as Section 3;

On page 1, in the title, in line 10, by striking all after ``concerning''; by striking all in lines
11 and 12; in line 13 by striking all before the period and inserting ``civil procedure; relating
to venue; amending K.S.A. 60-612 and repealing the existing section'';

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

Michael O'Neal

Tim Carmody

Janice L. Pauls
Conferees on the part of House

Tim Emert

Edward W. Pugh

Greta Goodwin
Conferees on part of Senate

Senator Vratil moved the Senate adopt the Conference Committee Report on SB 220.

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.

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on House
amendments to SB 324, 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 1, following line 24, by inserting the following:

``Section 1. K.S.A. 44-575 is hereby amended to read as follows: 44-575. (a) As used in
K.S.A. 44-575 through 44-580, and amendments thereto, ``state agency'' means the state, or
any department or agency of the state, but not including the Kansas turnpike authority, the
university of Kansas hospital authority, any political subdivision of the state or the district
court with regard to district court officers or employees whose total salary is payable by
counties.

(b) For the purposes of providing for the payment of compensation for claims arising
on and after July 1, 1974, and all other amounts required to be paid by any state agency as
a self-insured employer under the workers compensation act and any amendments or
additions thereto, there is hereby established the state workers compensation self-insurance
fund in the state treasury. The name of the state workmen's compensation self-insurance
fund is hereby changed to the state workers compensation self-insurance fund. Whenever
the state workmen's compensation self-insurance fund is referred to or designated by any
statute, contract or other document, such reference or designation shall be deemed to apply
to the state workers compensation self-insurance fund.

(c) The state workers compensation self-insurance fund shall be liable to pay: (1) All
compensation for claims arising on and after July 1, 1974, and all other amounts required
to be paid by any state agency as a self-insured employer under the workers compensation
act and any amendments or additions thereto; (2) the amount that all state agencies are
liable to pay of the ``carrier's share of expense'' of the administration of the office of the
director of workers' compensation as provided in K.S.A. 74-712 through 74-719, and
amendments thereto, for each fiscal year; (3) all compensation for claims remaining from
the self-insurance program which existed prior to July 1, 1974, for institutional employees
of the division of mental health and retardation services of the department of social and
rehabilitation services; (4) the cost of administering the state workers compensation self-
insurance fund including the defense of such fund and any costs assessed to such fund in
any proceeding to which it is a party; and (5) the cost of establishing and operating the state
workplace health and safety program under subsection (f). For the purposes of K.S.A. 44-
575 through 44-580, and amendments thereto, all state agencies are hereby deemed to be
a single employer whose liabilities specified in this section are hereby imposed solely upon
the state workers compensation self-insurance fund and such employer is hereby declared
to be a fully authorized and qualified self-insurer under K.S.A. 44-532, and amendments
thereto, but such employer shall not be required to make any reports thereunder.

(d) The secretary of administration shall administer the state workers compensation self-
insurance fund and all payments from such fund shall be upon warrants of the director of
accounts and reports issued pursuant to vouchers approved by the secretary of
administration or a person or persons designated by the secretary. The director of accounts
and reports may issue warrants pursuant to vouchers approved by the secretary for payments
from the state workers compensation self-insurance fund notwithstanding the fact that
claims for such payments were not submitted or processed for payment from money
appropriated for the fiscal year in which the state workers compensation self-insurance fund
first became liable to make such payments.

(e) The secretary of administration shall remit all moneys received by or for the secretary
in the capacity as administrator of the state workers compensation self-insurance fund, to
the state treasurer. Upon receipt of any such remittance the state treasurer shall deposit
the entire amount thereof in the state treasury to the credit of the state workers
compensation self-insurance fund.

(f) There is hereby established the state workplace health and safety program within
the state workers compensation self-insurance program of the department of administration.
The secretary of administration shall implement and administer the state workplace health
and safety program for state agencies. The state workplace health and safety program shall
include, but not be limited to:

(1) Workplace health and safety hazard surveys in all state agencies, including onsite
interviews with employees;

(2) Workplace health and safety hazard prevention services, including inspection and
consultation services;

(3) Procedures for identifying and controlling workplace hazards;

(4) Development and dissemination of health and safety informational materials, plans,
rules and work procedures; and

(5) Training for supervisors and employees in healthful and safe work practices.'';

On page 8, following line 16, by inserting the following:

``New Sec. 8. (a) The university of Kansas hospital authority is authorized to construct
buildings and facilities on state-owned property of the university of Kansas medical center
from any moneys of the university of Kansas hospital authority if the capital improvement
projects for such buildings and facilities have received prior approval by the state board of
regents and the plans and specifications for such projects have received prior approval by
the secretary of administration. Such capital improvement projects shall be totally financed
from moneys of the university of Kansas hospital authority and the buildings and facilities
constructed shall become the property of Kansas upon completion and acceptance by the
secretary of administration. No such capital improvement project for a building or facility
shall be approved by the state board of regents without having first advised and consulted
with the joint committee on state building construction.

(b) The university of Kansas hospital authority is authorized to repair, remodel or
renovate state buildings and facilities of the university of Kansas medical center from any
moneys of the university of Kansas hospital authority if the capital improvement projects
for such repairs, remodeling or renovations have received prior approval by the state board
of regents and the plans and specifications for such projects have received prior approval
by the secretary of administration. Such capital improvement projects shall be totally
financed from moneys of the university of Kansas hospital authority and the repairs,
remodeling or renovations shall become the property of Kansas upon completion and
acceptance by the secretary of administration. No such capital improvement project to
repair, remodel or renovate any state building or facility shall be approved by the state board
of regents without having first advised and consulted with the joint committee on state
building construction.'';

And by renumbering sections accordingly;

On page 8, in line 17, before ``75-5542'' by inserting ``44-575 and'';

On page 1, in the title, in line 13, by striking ``benefit plans'' and inserting ``benefits''; in
line 14, before ``amending'' by inserting ``authorizing certain capital improvement projects;'';
also in line 14, after ``K.S.A.'' by inserting ``44-575 and'';

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

Kenny Wilk

Denna L. Horst

Candy L. Ruff
Conferees on the part of House

Dave Kerr

Alicia L. Salisbury

Marge Petty
Conferees on part of Senate

Senator Kerr moved the Senate adopt the Conference Committee Report on HB 324.

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.

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on Senate
amendments to HB 2352, submits the following report:

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

On page 2, in line 35, following the semicolon, by inserting ``and''; in line 36, by striking
all after ``(15)''; in line 37, by striking ``(16)'';

On page 3, in line 2, following the semicolon, by inserting ``and''; in line 4, by striking ``;
and'' and inserting a period; by striking all in lines 5 and 6; in line 15, by striking
``administrative'' and inserting ``chief'';

On page 6, in line 35, by striking ``The court of appeals''; by striking all in lines 36 through
39, and inserting ``Appeals to the court of appeals may be taken by the prosecution from
cases before a district judge as a matter of right in the following cases, and no others:'';

On page 7, by striking all in lines 25 through 43;

By striking all on pages 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20 and 21;

On page 22, by striking all in lines 1 through 35;

By renumbering sections accordingly;

Also on page 22, in line 37 by striking the comma and inserting ``and''; also in line 37, by
striking ``and 38-1542''; in line 38, by striking all following ``302b''; in line 39, by striking
``38-1583'' and inserting ``, 20-302b, as amended by Section 13 of 1999 House Bill No. 2206,
and 20-302b, as amended by section 1 of 1999 Senate Bill No. 91,'';

On page 1, in the title, in line 12, by striking ``and judicial proceedings therein''; in line
15, by striking ``Kansas code for care of children;''; in line 16, by striking the comma, that
follows the stricken material, and inserting ``and''; also in line 16, following ``22-3602'', by
striking ``and''; in line 17, by striking ``38-1542''; also in line 17, by striking ``, 38-1502, 38-
1528, 38-''; in line 18, by striking ``1543, 38-1562, 38-1565 and 38-1583''; in line 19, by
striking ``38-1502c'' and inserting ``20-302b, as amended by Section 13 of 1999 House Bill
No 2206, and 20-302b, as amended by Section 1 of 1999 Senate Bill No. 91''

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

Tim Emert

John Vratil

Greta Goodwin
Conferees on the part of Senate

Michael R. O'Neal

Tim Carmody

Janice L. Pauls
Conferees on part of House

Senator Vratil moved the Senate adopt the Conference Committee Report on HB 2352.

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.

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on Senate
amendments to Substitute for HB 2469, submits the following report:

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

On page 3, by striking all on line 43;

By striking all on page 4;

On page 5, by striking all in lines 1 through 7 and by inserting the following:

``Section 1. K.S.A. 1998 Supp. 21-4705 is hereby amended to read as follows: 21-4705.
(a) For the purpose of sentencing, the following sentencing guidelines grid for drug crimes
shall be applied in felony cases under the uniform controlled substances act for crimes
committed on or after July 1, 1993:

(b) The provisions of subsection (a) will apply for the purpose of sentencing violations
of the uniform controlled substances act except as otherwise provided by law. Sentences
expressed in the sentencing guidelines grid for drug crimes in subsection (a) represent
months of imprisonment.

(c) (1) The sentencing court has discretion to sentence at any place within the
sentencing range. The sentencing judge shall select the center of the range in the usual case
and reserve the upper and lower limits for aggravating and mitigating factors insufficient to
warrant a departure. The sentencing court shall not distinguish between the controlled
substances cocaine base (9041L000) and cocaine hydrochloride (9041L005) when
sentencing within the sentencing range of the grid block.

(2) In presumptive imprisonment cases, the sentencing court shall pronounce the
complete sentence which shall include the prison sentence, the maximum potential
reduction to such sentence as a result of good time and the period of postrelease supervision
at the sentencing hearing. Failure to pronounce the period of postrelease supervision shall
not negate the existence of such period of postrelease supervision.

(3) In presumptive nonprison cases, the sentencing court shall pronounce the prison
sentence as well as the duration of the nonprison sanction at the sentencing hearing.

(d) Each grid block states the presumptive sentencing range for an offender whose
crime of conviction and criminal history place such offender in that grid block. If an offense
is classified in a grid block below the dispositional line, the presumptive disposition shall be
nonimprisonment. If an offense is classified in a grid block above the dispositional line, the
presumptive disposition shall be imprisonment. If an offense is classified in grid blocks 3-
E, 3-F, 3-G, 3-H, 3-I, 4-E or 4-F, the court may impose an optional nonprison sentence
upon making the following findings on the record:

(1) An appropriate treatment program exists which is likely to be more effective than
the presumptive prison term in reducing the risk of offender recidivism; and

(2) the recommended treatment program is available and the offender can be admitted
to such program within a reasonable period of time; or

(3) the nonprison sanction will serve community safety interests by promoting offender
reformation.

Any decision made by the court regarding the imposition of an optional nonprison
sentence if the offense is classified in grid blocks 3-E, 3-F, 3-G, 3-H, 3-I, 4-E or 4-F shall
not be considered a departure and shall not be subject to appeal.

(e) The sentence for a second or subsequent conviction of K.S.A. 65-4159 and
amendments thereto, manufacture of any controlled substance or controlled substance analog
shall be a presumptive term of imprisonment of two times the maximum duration of the
presumptive term of imprisonment. The court may impose an optional reduction in such
sentence of not to exceed 50% of the mandatory increase provided by this subsection upon
making a finding on the record that one or more of the mitigating factors as specified in
K.S.A. 21-4716 and amendments thereto justify such a reduction in sentence. Any decision
made by the court regarding the reduction in such sentence shall not be considered a
departure and shall not be subject to appeal.'';

On page 13, in line 14, by striking all after ``(k)''; by striking all in lines 15 through 18
and inserting ``''practitioner`` means a person licensed to practice medicine and surgery,
dentist, podiatrist, veterinarian, optometrist licensed under the optometry laws as a
therapeutic licensee or diagnostic and therapeutic licensee, or scientific investigator or other
person authorized by law to use a controlled substance in teaching or chemical analysis or
to conduct research with respect to a controlled substance;'';

On page 17, in line 22, by striking ``form'' and inserting ``from'';

On page 20, in line 13, after the semicolon, by inserting ``and''; in line 17, by striking ``;
and'' and inserting a period; by striking all in lines 18 and 19;

On page 21, in line 33, by striking ``Any'' and inserting ``Upon request of the law
enforcement agency in charge after determination of the existence of an alleged illegal drug
manufacturing site, any'';

On page 22, in line 5, after ``property'' by inserting ``not destroyed pursuant to subsection
(a)(2) of K.S.A. 60-4117 and amendments thereto'';

On page 25, after line 15, by inserting the following:

``Sec. 2. K.S.A. 1998 Supp. 65-4159 is hereby amended to read as follows: 65-4159. (a)
Except as authorized by the uniform controlled substances act, it shall be unlawful for any
person to manufacture any controlled substance or controlled substance analog.

(b) Any person violating the provisions of this section with respect to the unlawful
manufacturing or attempting to unlawfully manufacture any controlled substance or
controlled substance analog, upon conviction, is guilty of:

~~(1) A drug severity level 2 felony upon conviction for a first offense;~~

~~(2)~~ a drug severity level 1 felony ~~upon conviction for a second offense or subsequent~~
~~offense~~ and the sentence for which shall not be subject to statutory provisions for suspended
sentence, community work service, or probation.

(c) The provisions of subsection (d) of K.S.A. 21-3301, and amendments thereto, shall
not apply to a violation of attempting to unlawfully manufacture any controlled substance
pursuant to this section.

~~(d) Notwithstanding any other provision of law, upon conviction of any person for~~
~~violating subsection (a), such person shall be guilty of a drug severity level 1 felony if such~~
~~person is 18 or more years of age and the substances involved were manufactured within~~
~~1,000 feet of any school property upon which is located a structure used by a unified school~~
~~district or an accredited nonpublic school for student instruction or attendance or~~
~~extracurricular activities of pupils enrolled in kindergarten or any of the grades one through~~
~~12.~~

~~Nothing in this subsection shall be construed as requiring that school be in session or that~~
~~classes are actually being held at the time of the offense or that children must be present~~
~~within the structure or on the property during the time of any alleged criminal act. If the~~
~~structure or property meets the description above, the actual use of that structure or~~
~~property at the time alleged shall not be a defense to the crime charged or the sentence~~
~~imposed.~~'';

And by renumbering sections accordingly;

Also on page 25, in line 16, by striking ``21-4717 and''; in line 17, before ``22-2512'' by
inserting ``21-4705,''; also in line 17, by striking ``and'' and inserting a comma; also in line
17, after ``65-4152'' by inserting ``and 65-4159'';

On page 1, in the title, in line 16, by striking ``21-''; in line 17, by striking ``4717 and'';
also in line 17, before ``22-'' by inserting ``21-4705,''; in line 18, by striking ``and'' the first
time it appears and inserting a comma; also in line 18, after ``65-4152'' by inserting ``and
65-4159'';

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

Tim Emert

John Vratil

Greta Goodwin
Conferees on the part of Senate

Michael O'Neal

Tim Carmody

Janice L. Pauls
Conferees on part of House

Senator Emert moved the Senate adopt the Conference Committee Report on Sub for
HB 2469.

On roll call, the vote was: Yeas 26, nays 12, present and passing 1; absent or not voting
1.

Yeas: Barone, Becker, Biggs, Bleeker, Bond, Corbin, Downey, Emert, Feleciano, Gilstrap,
Goodwin, Hensley, Jones, Jordan, Kerr, Langworthy, Lee, Morris, Petty, Praeger, Steffes,
Steineger, Stephens, Umbarger, Vidricksen, Vratil.

Nays: Brownlee, Clark, Donovan, Harrington, Huelskamp, Lawrence, Oleen, Pugh,
Ranson, Salisbury, Salmans, Tyson.

Present and passing: Gooch.

Absent or not voting: Hardenburger.

The Conference Committee report was adopted.

EXPLANATION OF VOTE
Mr. President: While I strongly agree that we need to punish drug law violators, this
bill fails to safeguard the freedoms and liberties of innocent folks caught in the crossfire of
the drug war. Therefore, I must vote ``No''. -- Tim Huelskamp

Mr. President: I too recognize methamphetamine manufacturing is a terrible problem,
but HB 2469 has a potential fiscal impact of $29 million per year, which has not been
addressed. This bill goes much further than targeting ``meth'': a better approach could be
taken to address the problem other than the price-tag on this bill. I vote no.--Lana Oleen

Senators Brownlee, Harrington, Lawrence and Salisbury request the record to show they
concur with the ``Explanation of Vote'' offered by Senator Oleen on HB 2469.

INTRODUCTION OF ORIGINAL MOTIONS AND SENATE RESOLUTIONS
Senators Clark, Oleen, Petty, Barone, Becker, Biggs, Bleeker, Bond, Brownlee, Corbin,
Donovan, Downey, Emert, Feleciano, Gilstrap, Gooch, Goodwin, Hardenburger,
Harrington, Hensley, Huelskamp, Jones, Jordan, Kerr, Langworthy, Lawrence, Lee, Morris,
Praeger, Pugh, Ranson, Salisbury, Salmans, Steffes, Steineger, Stephens, Tyson, Umbarger,
Vidricksen and Vratil introduced the following Senate resolution, which was read:

SENATE RESOLUTION No. 1867--

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

A RESOLUTION honoring Craig Yorke, Sr. WHEREAS, Craig Yorke, Sr. is retiring at the conclusion of the 1999 legislative session
from his position as a member of the Sergeant-at-Arms staff for the Kansas Senate, a position
he has held since 1993; and

WHEREAS, Craig Yorke's life is a saga worth telling: He was born December 24, 1912,
in New Bedford, Massachusetts. Abandoned by his mother at age 4, when discovered he
was found to be seriously ill. He spent the next seven years in a tuberculosis sanatorium
where kind soldiers who had been gassed in World War I treated him as their own and
taught him to read and write. In 1921 he was released and placed in a Catholic orphanage.
Before completing high school he had lived with his grandmother, father and four foster
families. During grammar school he won a city-wide house design contest and received a
large radio. After his first year in high school he had won all 12 of the city's prizes in drafting.
After graduating from high school he completed a year of college at Lincoln University in
Pennsylvania before being forced to leave in 1933 because of lack of money; and

WHEREAS, Craig Yorke was a phenomenal athlete. In grammar school, in his first at
bat in a playground baseball game, he hit the ball for a homer and through a classroom
window. He played quarterback in high school football, was a state champion runner but
excelled in baseball--particularly as a hitter. From age 14 and for 16 years he played semi-
professional baseball. He was a switch hitter and maintained a batting average over .300.
He played on several white as well as black teams earning from $.35 to $29 per game. In
Yankee Stadium, while playing for the Brooklyn Black Sox, he bunted safely against the
great Sachel Paige; and

WHEREAS, After working as a draftsman for some time, with much of it being electrical
drawings, he qualified as a Registered Electrical Engineer. In 1963 he started a new career
working for the federal government as an electrical engineer and, later, working as a
specifications writer and chief electrical design engineer, retiring in 1985. Subsequently he
worked for Holmes and Narver, Inc. in Albuquerque on a high priority project involving
the U.S. Navy and its activities at the North Pole; and

WHEREAS, Craig Yorke married Dorothy Britt Reed in 1941. She died in 1988. He has
one son, Craig Yorke, Jr., a neurosurgeon here in Topeka, a daughter-in-law, Mary Powell,
and two grandsons, Zachary and Christopher, both students at Topeka High School: Now,
therefore,

Be it resolved by the Senate of the State of Kansas: That we marvel about the life
experiences of Craig Yorke, Sr. and will miss the cordial welcome he has given to visitors
in the Senate galleries; and

Be it further resolved: That the Secretary of the Senate be directed to provide five
enrolled copies of this resolution to Craig Yorke, Sr.

On emergency motion of Senator Oleen SR 1867 was adopted unanimously.

Senators Clark, Oleen and Petty remembered Craig Yorke as a friend, an inspiration and
a joy to know.

President Bond welcomed Mr. Yorke and family members: Craig, Jr., Mary Powell and
grandsons, Zachary and Christopher, and thanked him for his years of loyal service.

The Senators rose in a standing ovation.

Committee on Federal and State Affairs recommends HB 2570 be passed.

Also Substitute for HB 2013 be amended on page 1, in line 16, by striking ``16'' and
inserting ``17''; following line 20, by inserting the following:

``(a) ``Act'' means the bingo act.

(b) ``Administrator'' means the administrator of charitable gaming designated by the
secretary pursuant to section 15, and amendments thereto.'';

By relettering subsections (a) through (p) as (c) through (r) respectively;

Also on page 1, in line 39, by striking ``or'';

On page 3, in line 4, by striking ``secretary'' and inserting ``administrator''; in line 10, by
striking ``secretary'' and inserting ``administrator''; in line 20, by striking ``secretary'' and
inserting ``administrator''; in line 25, by striking ``secretary'' and inserting ``administrator'';
in line 32, by striking ``secretary'' and inserting ``administrator''; in line 37, by striking ``sec-
retary'' and inserting ``administrator''; in line 40, by striking ``secretary'' and inserting
``administrator'';

On page 4, in line 2, by striking ``secretary'' and inserting ``administrator''; in line 15, by
striking ``secretary'' and inserting ``administrator''; in line 20, by striking ``secretary'' and
inserting ``administrator''; in line 24, by striking ``secretary'' and inserting ``administrator'';
in line 27, by striking ``person'' and inserting ``nonprofit organization''; in line 29, following
``any'' by inserting ``Native American Indian tribe or''; in line 30, preceding the period, by
inserting ``within the geographic boundaries of the state of Kansas''; following line 30, by
inserting the following:

``(s) ``Person'' means any natural person, corporation, partnership, trust or association.'';

By relettering subsections (q) through (t) as (t) through (w) respectively;

Also on page 4, in line 33, preceding the period, by inserting ``by a licensee''; in line 40,
by striking all following ``revenue''; in line 41, by striking all preceding the period;

On page 5, in line 7, by striking ``secretary'' and inserting ``administrator''; in line 8, by
striking ``secretary'' and inserting ``administrator''; in line 16, by striking ``secretary'' and
inserting ``administrator''; by striking all of line 33 and inserting ``administrator. The admin-
istrator shall have the power and''; in line 35, by striking ``secretary'' and inserting ``admin-
istrator''; by striking all in line 38 and inserting ``administrator. No lease submitted to the
administrator shall''; in line 43, by striking ``sec-'';

On page 6, in line 1, by striking ``retary'' and inserting ``administrator''; in line 2, by striking
``secretary'' and inserting ``administrator''; in line 3, by striking ``by the secretary'' and in-
serting ``pursuant to the bingo act''; by striking all of line 7 and inserting ``administrator
under rules and regulations adopted pursuant to the bingo act.''; in line 9, by striking ``sec-
retary'' and inserting ``administrator''; in line 17, by striking ``secretary'' and inserting ``ad-
ministrator''; in line 27, by striking ``secretary'' and inserting ``administrator''; in line 29, by
striking ``secretary'' and inserting ``administrator''; in line 43, by striking ``secretary'' and
inserting ``administrator'';

On page 7, in line 2, by striking ``secretary'' and inserting ``administrator''; in line 3, by
striking ``secretary'' and inserting ``administrator''; in line 13, by striking ``secretary'' and
inserting ``administrator''; in line 26, by striking all following the period; by striking all in
lines 27 through 43;

On page 8, by striking all in lines 1 through 29 and inserting the following:

``For the privilege of participating in games of bingo, there is hereby levied upon each
player:

(a) A tax at the rate of 3% upon the charges made by each operator for participation in
call bingo games using hard cards. The operator shall collect the tax from the player at the
time that the player pays the charges for participation and shall remit the tax to the director.
The ultimate legal incidence of and liability for such tax shall be upon the player.

(b) A tax at the rate of $0.003 upon each bingo face sold or provided to the player by
the operator for participation in call bingo games. The tax shall be prepaid by the operator
to the distributor at the time that the operator purchases the bingo face. The distributor
shall remit the tax to the director. The operator shall then be reimbursed for the prepaid
tax by collecting the tax from each player at the time that the player pays the charges for
participation in call bingo games using bingo faces. The ultimate legal incidence of and
liability for such tax shall be upon the player.

(c) A tax at the rate of 1% upon the retail sales price printed on each instant bingo ticket
sold or provided to the player by the operator for participation in instant bingo games. The
tax shall be prepaid by the operator to the distributor at the time that the operator purchases
the bingo face. The distributor shall remit the tax to the director. The operator shall then
be reimbursed for the prepaid tax by collecting the tax from each player at the time that
the player pays the charges for participation in instant bingo games. The ultimate legal
incidence of and liability for such tax shall be upon the player.'';

Also on page 8, in line 31, by striking ``director'' and inserting ``administrator''; in line 33,
by striking ``director'' where it appears for the second time and inserting ``administrator'';
in line 35, by striking ``organization'' and inserting ``operator'';

On page 9, in line 4, by striking ``director'' and inserting ``administrator''; in line 6, by
striking ``licensees'' and inserting ``operators''; in line 9, by striking ``director'' and inserting
``administrator''; in line 11, by striking all following ``regulations''; in line 12, by striking all
preceding the period and inserting ``adopted pursuant to the bingo act''; in line 13, by striking
``director'' and inserting ``administrator''; in line 14, by striking ``director'' and inserting
``administrator''; in line 15, by striking ``director'' and inserting ``administrator''; in line 22,
by striking ``director'' and inserting ``administrator''; in line 31, by striking ``director'' and
inserting ``administrator''; in line 35, by striking ``director'' and inserting ``administrator''; in
line 41, by striking ``director'' and inserting ``administrator'';

On page 10, by striking all of line 1 and inserting ``able cause, the administrator, in the
administrator's discretion, may''; in line 10, by striking ``secretary'' and inserting ``adminis-
trator''; in line 15, by striking ``secretary'' and inserting ``administrator''; in line 21, by striking
``secretary'' and inserting ``administrator''; in line 24, by striking ``secretary'' and inserting
``administrator''; in line 28, by striking ``secretary'' and inserting ``administrator''; in line 34,
by striking ``sec-''; in line 35, by striking ``retary'' and inserting ``administrator''; in line 41,
by striking ``secretary'' and inserting ``administrator'';

On page 11, in line 2, by striking ``or''; by striking all in line 3; in line 4, by striking
``adopted by the secretary'' and inserting ``and conducted in accordance with the bingo act
and rules and regulations adopted pursuant thereto''; in line 5, by striking ``such organiza-
tion'' and inserting ``licensee''; in line 7, preceding ``bingo'' by inserting ``games of''; in line
8, by striking ``cards''; in line 9, by striking ``organization'' and inserting ``licensee''; in line
11, following ``person'' by inserting ``licensed under the bingo act''; in line 12, by striking
``sponsoring organization'' and inserting ``licensee''; in line 13, by striking ``sponsoring or-
ganization'' and inserting ``licensee''; in line 21, following ``games'' by inserting ``by a li-
censee''; by striking all in line 26 and inserting ``ing in any game of bingo managed, conducted
or operated by licensees.''; in line 28, by striking ``any such organization'' and inserting ``a
licensee''; in line 32, by striking ``$500'' and inserting ``$200''; in line 40, following ``awarded''
by inserting ``by a licensee''; in line 41, by striking ``in cash or its equivalent and such'' and
inserting ``. The''; in line 42, by striking ``in cash or its equivalent'';

On page 12, in line 3, following ``made'' by inserting ``by a licensee''; in line 9, following
``made'' by inserting ``by a licensee''; in line 16, following ``made'' by inserting ``by a licensee'';
in line 22, by striking ``licensee'' and inserting ``operator''; in line 27, following ``conducted''
by inserting ``by a licensee''; in line 32, by striking ``by the secretary'' and inserting ``pursuant
to the bingo act.'';

On page 13, in line 5, by striking ``secretary'' and inserting ``administrator''; in line 7,
following ``bingo'' by inserting ``by licensees''; in line 10, following ``conducted'' by inserting
``by licensees''; in line 12, following ``conducted'' by inserting ``by licensees''; in line 22, by
striking ``$500'' and inserting ``$200''; in line 25, by striking ``secretary'' and inserting ``ad-
ministrator''; in line 29, by striking ``secretary'' and inserting ``administrator'';

On page 14, in line 25, following ``(10)'' by inserting ``if sold or distributed to a licensee
under the bingo act,''; in line 37, by striking ``not have''; by striking all in line 38 and inserting
``be the full amount. If there is no winner of a progressive bingo game at a session, a stated
consolation prize may be awarded. Any'';

On page 15, in line 15, by striking ``the secretary in''; in line 16, following ``ulations'' by
inserting ``adopted pursuant to the bingo act''; also in line 16, by striking ``reusable''; in line
19, by striking all following the period; by striking all in lines 20 through 22; in line 23, by
striking ``secretary'' and inserting ``administrator''; in line 24, following ``ulations'' by inserting
``adopted pursuant to the bingo act''; in line 33, following ``sold'' by inserting ``, if sold or
distributed to a licensee''; in line 34, by striking ``secretary'' and inserting ``administrator'';
in line 36, by striking ``secretary'' and inserting ``administrator'';

On page 16, in line 1, by striking ``of the''; by striking all in line 2 and inserting ``adopted
pursuant thereto for the registration, licensing, taxing, management,''; in line 6, by striking
``secretary'' and inserting ``administrator''; in line 15, by striking ``secretary'' and inserting
``administrator''; in line 21, by striking ``secretary'' and inserting ``administrator''; following
line 28, by inserting the following:

``The provisions of this section shall not apply to games of bingo managed, operated or
conducted by Native American Indians.'';

Also on page 16, in line 30, by striking all following the period; by striking all in lines 31
through 37 and inserting the following:

``(a) The administration and enforcement of the bingo act and any rules and regulations
adopted pursuant thereto shall be vested in the administrator.

(b) Upon recommendation of the administrator, the secretary shall adopt all rules and
regulations necessary for the administration and enforcement of the bingo act by the
administrator.'';

Also on page 16, in line 39, by striking ``secretary'' and inserting ``administrator'';

On page 17, in line 2, by striking ``secretary'' and inserting ``administrator''; in line 14, by
striking ``exclusively''; also in line 14, preceding ``enforcement'' by inserting ``administration
and''; in line 17, by striking ``secretary'' and inserting ``administrator''; in line 32, by striking
``secretary related to the'' and inserting ``administrator related to the administration and'';
in line 33, by striking ``On''; by striking all in line 34 and inserting ``At the end of each fiscal
year,''; in line 37, by striking ``operating''; also in line 37, by striking ``of the secretary'' and
inserting ``administrator''; in line 38, by striking all following ``the'' where it appears for the
first time; by striking all in lines 39 through 41 and inserting ``administration and enforce-
ment of the bingo act.'';

On page 18, in line 11, by striking ``secretary'' and inserting ``administrator''; in line 20,
by striking ``secretary'' and inserting ``administrator''; in line 21, by striking ``secretary'' and
inserting ``administrator''; in line 23, by striking ``secretary'' and inserting ``administrator'';
in line 26, by striking ``secretary'' and inserting ``administrator''; in line 28, by striking ``sec-
retary'' and inserting ``administrator''; in line 29, by striking ``secretary'' and inserting ``ad-
ministrator''; also in line 29, by striking ``by rule and regulation'' and inserting ``, by rules
and regulations adopted under the bingo act,''; in line 31, by striking ``secretary'' and in-
serting ``administrator''; in line 40, by striking ``secretary'' and inserting ``administrator'';

On page 19, in line 1, by striking ``secretary'' and inserting ``administrator''; in line 10, by
striking ``secretary'' and inserting ``administrator''; by striking all in lines 19 through 25 and
inserting the following:

``New Sec. 15. (a) The secretary of revenue shall designate an administrator of chari-
table gaming. Any person designated the administrator of charitable gaming shall have at
least five years' experience in the area of charitable gaming regulation. The administrator
of charitable gaming shall be in the unclassified service and shall receive an annual salary
fixed by the secretary of revenue and approved by the governor.

(b) Under the supervision of the secretary, the administrator of charitable gaming shall
administer and enforce the provisions of the bingo act and any rules and regulations adopted
pursuant thereto. The administrator's exclusive duties shall be the administration and en-
forcement of the bingo act and any rules and regulations adopted pursuant thereto. The
administrator shall be solely accountable to and report to the secretary of revenue.

New Sec. 16. The department of revenue shall be subject to a performance audit of
the first year of implementation and enforcement of this act by the department. The scope
of such audit shall be determined by the legislative post audit committee and shall include,
but not be limited to, the efficiency and effectiveness of the department in implementing
and enforcing this act. The post auditor may contract for the conduct of such performance
audit in accordance with procedures established by the legislative post audit act. The report
of the audit required by this section shall be submitted to the legislative post audit committee
and to the legislature no later than the first day of the 2001 session. The furnishing of audit
services pursuant to this section shall be a transaction between the post auditor and the
department of revenue and shall be settled in accordance with the provisions of K.S.A. 75-
5515 and amendments thereto.

New Sec. 17. If any provision of the bingo act or the application thereof to any person
or circumstances is held unconstitutional or otherwise invalid, such unconstitutionality or
invalidity shall not affect other provisions or applications of the act which can be given effect
without the unconstitutional or invalid provision or application, and, to this end, the pro-
visions of this act are severable.'';

By renumbering sections accordingly;

On page 31, in line 40, by striking ``licensees'' and inserting ``operators''; by striking all in
lines 41 through 43 and inserting the following:

``Sec. 18. K.S.A. 74-8711 is hereby amended to read as follows: 74-8711. (a) There is
hereby established in the state treasury the lottery operating fund.

(b) The executive director shall remit at least weekly to the state treasurer all moneys
collected from the sale of lottery tickets and shares and any other moneys received by or
on behalf of the Kansas lottery. Upon receipt of any such remittance, the state treasurer
shall deposit the entire amount thereof in the state treasury and credit it to the lottery
operating fund. Moneys credited to the fund shall be expended or transferred only as pro-
vided by this act. Expenditures from such fund shall be made in accordance with appro-
priations acts upon warrants of the director of accounts and reports issued pursuant to
vouchers approved by the executive director or by a person designated by the executive
director.

(c) Moneys in the lottery operating fund shall be used for:

(1) The payment of expenses of the lottery, which shall include all costs incurred in the
operation and administration of the Kansas lottery; all costs resulting from contracts entered
into for the purchase or lease of goods and services needed for operation of the lottery,
including but not limited to supplies, materials, tickets, independent studies and surveys,
data transmission, advertising, printing, promotion, incentives, public relations, communi-
cations, and distribution of tickets and shares; and reimbursement of costs of facilities and
services provided by other state agencies;

(2) the payment of compensation to lottery retailers;

(3) transfers of moneys to the lottery prize payment fund pursuant to K.S.A. 74-8712,
and amendments thereto;

(4) transfers to the state general fund pursuant to K.S.A. 74-8713, and amendments
thereto;

(5) transfers to the state gaming revenues fund pursuant to subsection (d) of this section
and as otherwise provided by law; and

(6) ~~the~~ transfers to the county reappraisal fund as prescribed by law.

(d) The director of accounts and reports shall transfer moneys in the lottery operating
fund to the state gaming revenues fund created by K.S.A. 79-4801, and amendments thereto,
on or before the 15th day of each month~~, for fiscal years commencing on or after July 1,~~
~~1988~~ in an amount certified monthly by the executive director and determined as follows,
whichever is greater:

(1) In An amount equal to the moneys in the lottery operating fund in excess of those
needed for the purposes described in subsections (c)(1) through (c)(4); or

(2) except for pull-tab lottery tickets and shares, an amount equal to not less than 30%
of total monthly revenues from the sales of lottery tickets and shares less estimated returned
tickets. In the case of pull-tab lottery tickets and shares, an amount equal to not less than
20% of the total monthly revenues from the sales of pull-tab lottery tickets and shares less
estimated returned tickets.

Sec. 19. K.S.A. 74-8712 is hereby amended to read as follows: 74-8712. (a) There is
hereby established in the state treasury the lottery prize payment fund.

(b) The executive director shall certify periodically to the director of accounts and re-
ports such amounts as the executive director determines necessary to pay prizes to the
holders of valid winning lottery tickets or shares or for the purchase of nonmonetary prizes.
Upon receipt of such certification, the director of accounts and reports shall ~~promptly~~ trans-
fer the amount certified from the lottery operating fund to the lottery prize payment fund.
Moneys credited to the fund shall be expended only for ~~the~~:

(1) The payment of prizes to the holders of valid winning lottery tickets or shares~~, for~~;

(2) the reimbursement of retailers who have paid holders of winning tickets or shares
or;

(3) the purchase of nonmonetary prizes; or

(4) as purposes otherwise specifically authorized by law.

(c) Prior to making any expenditure for reimbursement of a retailer or payment of a
prize of $50 or more, the executive director shall cause all proposed prize payments to be
matched against the state debtor files maintained by the director of accounts and reports
and shall certify and pay or deliver any matched prize or the cash amount thereof to the
director of accounts and reports for setoff as prescribed under K.S.A. 75-6201 et seq., and
amendments thereto.

(d) Expenditures from ~~such~~ the lottery prize payment fund shall be made in accordance
with appropriations acts upon warrants of the director of accounts and reports, or a person
designated by the director of accounts and reports pursuant to K.S.A. 75-3732, and amend-
ments thereto, issued pursuant to vouchers approved by the executive director, or a person
designated by the executive director.

Sec. 20. K.S.A. 74-8720 is hereby amended to read as follows: 74-8720. (a) As nearly
as practical, an amount equal to not less than 45% of the total sales of lottery tickets or
shares, computed on an annual basis, shall be allocated for payment of lottery prizes.

(b) The prize to be paid or awarded for each winning ticket or share shall be paid to
one natural person who is adjudged by the executive director, the director's designee or the
retailer paying the prize, to be the holder of such winning ticket or share, or the person
designated in writing by the holder of the winning ticket or share on a form satisfactory to
the executive director, except that the prize of a deceased winner shall be paid to the duly
appointed representative of the estate of such winner or to such other person or persons
appearing to be legally entitled thereto.

(c) The executive director shall award the designated prize to the holder of the ticket
or share upon the validation of a claim or confirmation of a winning share. The executive
director shall have the authority to make payment for prizes by any means deemed appro-
priate upon the validation of winning tickets or shares.

(d) The right of a person to a prize drawn or awarded is not assignable.

(e) All prizes awarded shall be taxed as Kansas source income and shall be subject to
all state and federal income tax laws and rules and regulations. State income taxes shall be
withheld from prizes paid whenever federal income taxes are required to be withheld under
current federal law.

(f) (1) Unclaimed prize money not payable directly by lottery retailers shall be retained
for the period established by rules and regulations ~~and~~. Except as provided by paragraph
(2), if no claim is made within such period, ~~then~~ such unclaimed prize money shall be added
to the prize pools of subsequent lottery games.

(2) An amount equal to the greater of $60,000 or 2% of the unclaimed prize money shall
be used to fund grants awarded pursuant to section 21, and amendments thereto, for the
treatment of problem or compulsive gamblers and grants to conduct studies on the effects
of gambling.

(g) The state of Kansas, members of the commission and employees of the Kansas
lottery shall be discharged of all further liability upon payment of a prize pursuant to this
section.

(h) The Kansas lottery shall not publicly disclose the identity of any person awarded a
prize except upon written authorization of such person.

New Sec. 21. (a) The executive director shall develop and administer a competitive
grant program for the treatment of problem or compulsive gamblers and conduct studies
on the effects of gambling in Kansas. At least annually, the executive director shall determine
the amount of moneys available for grants. The executive director shall issue requests for
proposals for grant awards in accordance with the provisions of this section.

(b) In issuing requests for proposals and making such grants, the executive director shall
encourage proposals for new or creative programs or activities in addition to established or
current programs or activities.

(c) In addition to other criteria prescribed by the executive director, the executive di-
rector shall require each proposal for a grant to demonstrate that the proposal has been
developed with substantial and effective collaboration and coordination between the appli-
cant and the public and private organizations in the community that are directly involved
or otherwise recognized as interested in the treatment of problem or compulsive gamblers
or the study of the effects of gambling, including but not limited to community mental
health centers and organizations and public health and social services agencies.

Sec. 22. K.S.A. 1998 Supp. 74-8836 is hereby amended to read as follows: 74-8836. (a)
Any organization licensee that conducts at least 150 days of live racing during a calendar
year or a fair association that conducts fewer than 22 days of live racing during a calendar
year may apply to the commission for a simulcasting license to display simulcast horse or
greyhound races and to conduct intertrack parimutuel wagering thereon. If the organization
licensee conducts races at a racetrack facility that is owned by a facility owner licensee, both
licensees shall join in the application. A simulcasting license granted to a fair association
that conducts fewer than 22 days of live racing shall restrict the fair association's display of
simulcast races to a number of days, including days on which it conducts live races, equal
to not more than twice the number of days on which it conducts live races.

(b) (1) A simulcasting license granted to an organization licensee other than a fair as-
sociation shall authorize the display of simulcast races at the racetrack facility where the live
races are conducted so long as the licensee conducts at least eight live races per day and an
average of 10 live races per day per week. If a simulcasting licensee conducts live horse
races on a day when simulcast races are displayed by the licensee and the licensee conducts
fewer than an average of 10 live horse races per day per week, not less than 80% of the
races on which wagers are taken by the licensee during such week shall be live races con-
ducted by the licensee unless approved by the recognized horsemen's group or upon a
finding by the commission that the organization licensee was unable to do so for reasonable
cause. If a simulcast licensee conducts live greyhound races on a day when simulcast races
are displayed by the licensee and the licensee schedules fewer than 13 live greyhound races
during a performance on such day, not less than 80% of the races on which wagers are taken
by the licensee during such performance shall be live races conducted by the licensee.

(2) A simulcasting license granted to a fair association shall authorize the display of
simulcast races at the racetrack facility where the races are conducted only if live races are
scheduled for two or more days of the same calendar week, except that the licensee may
conduct simulcast races in the week immediately before and immediately after a live meeting
if the total number of days on which simulcast races are displayed does not exceed the total
authorized in subsection (a). In no case shall the live meet or simulcast races allowed under
this subsection exceed 10 consecutive weeks. For purposes of this subsection, a calendar
week shall be measured from Monday through the following Sunday.

(3) Notwithstanding the provisions of subsection (a), (b)(1) or (b)(2), a fair association
may apply to the commission for not more than five additional days of simulcasting of special
events. In addition, the commission may authorize a fair association to display additional
simulcast races but, if such fair association is less than 100 miles from an organization
licensee that is not a fair association, it ~~must~~ also shall secure written consent from that
organization licensee.

(4) Notwithstanding the provisions of subsection (b)(1), if an emergency causes the
cancellation of all or any live races scheduled for a day or performance by a simulcasting
licensee, the commission or the commission's designee may authorize the licensee to display
any simulcast races previously scheduled for such day or performance.

(5) Notwithstanding the provisions of subsection (b)(1), the commission may authorize
the licensee to display simulcast special racing events as designated by the commission.

(c) The application for a simulcasting license shall be filed with the commission at a
time and place prescribed by rules and regulations of the commission. The application shall
be in a form and include such information as the commission prescribes.

(d) To qualify for a simulcasting license the applicant shall:

(1) Comply with the interstate horse racing act of 1978 (15 U.S.C. 3001 et seq.) as in
effect December 31, 1991;

(2) submit with the application a written approval of the proposed simulcasting schedule
signed by: (A) The recognized horsemen's group for the track, if the applicant is licensed
to conduct only horse races; (B) the recognized greyhound owners' group, if the applicant
is licensed to conduct only greyhound races and only greyhound races are to be simulcast;
(C) both the recognized greyhound owners' group and a recognized horsemen's group, if
the applicant is licensed to conduct only greyhound races and horse races are to be simulcast;
(D) the recognized greyhound owners' group, if the applicant is licensed to conduct both
greyhound and horse races, only greyhound races are to be simulcast and races are to be
simulcast only while the applicant is conducting live greyhound races; (E) the recognized
horsemen's group for the track, if the applicant is licensed to conduct both greyhound and
horse races, only horse races are to be simulcast and races are to be simulcast only while
the applicant is conducting live horse races; or (F) both the recognized greyhound owners'
group and the recognized horsemen's group for the track, if the applicant is licensed to
conduct both greyhound races and horse races and horse races are to be simulcast while
the applicant is conducting live greyhound races or greyhound races are to be simulcast
while the applicant is conducting live horse races; and

(3) submit, in accordance with rules and regulations of the commission and before the
simulcasting of a race, a written copy of each contract or agreement which the applicant
proposes to enter into with regard to such race, and any proposed modification of any such
contract or agreement.

(e) The term of a simulcasting license shall be one year.

(f) A simulcasting licensee may apply to the commission or its designee for changes in
the licensee's approved simulcasting schedule if such changes are approved by the respective
recognized greyhound owners' group or recognized horsemen's group needed throughout
the term of the license. Application shall be made upon forms furnished by the commission
and shall contain such information as the commission prescribes.

(g) Except as provided by subsection (j), the takeout for simulcast horse and greyhound
races shall be the same as it is for the live horse and greyhound races conducted during the
current or next live race meeting at the racetrack facility where the simulcast races are
displayed. For simulcast races the tax imposed on amounts wagered shall be as provided by
K.S.A. 74-8823, and amendments thereto. Of the balance of the takeout remaining after
deduction of taxes, an amount equal to a percentage, to be determined by the commission,
of the gross sum wagered on simulcast races shall be used for purses, as follows:

(1) For greyhound races conducted by the licensee, if the simulcast race is a greyhound
race and the licensee conducts only live greyhound races;

(2) for horse races conducted by the licensee, if the simulcast race is a horse race and
the licensee conducts only live horse races;

(3) for horse races and greyhound races, as determined by both the recognized horse-
men's group and the recognized greyhound owners' group, if the simulcast race is a grey-
hound race and the licensee does not conduct or is not currently conducting live greyhound
races; or

(4) for horse races and greyhound races, as determined by both the recognized horse-
men's group and the recognized greyhound owners' group, if the simulcast is a horse race
and the licensee does not conduct or is not currently conducting live horse races. That
portion of simulcast purse money determined to be used for horse purses shall be appor-
tioned by the commission to the various horse race meetings held in any calendar year based
upon the number of live horse race dates comprising such horse race meetings in the
preceding calendar year.

(h) Except as provided by subsection (j):

(1) If a simulcasting licensee has a license to conduct live horse races and the licensee
displays a simulcast horse race: (A) All breakage proceeds shall be remitted by the licensee
to the commission not later than the 15th day of the month following the race from which
the breakage is derived and the commission shall promptly remit any such proceeds received
to the state treasurer, who shall deposit the entire amount in the state treasury and credit
it to the Kansas horse breeding development fund created by K.S.A. 74-8829, and amend-
ments thereto; and (B) all unclaimed ticket proceeds shall be remitted by the licensee to
the commission on the 61st day after the end of the calendar year and the commission shall
promptly remit any such proceeds received to the state treasurer, who shall deposit the
entire amount in the state treasury and credit it to the Kansas horse breeding development
fund created by K.S.A. 74-8829, and amendments thereto.

(2) If a simulcasting licensee has a license to conduct live greyhound races and the
licensee displays a simulcast greyhound race, breakage and unclaimed winning ticket pro-
ceeds shall be distributed in the manner provided by K.S.A. 74-8821 and 74-8822, and
amendments thereto, for breakage and unclaimed winning ticket proceeds from live grey-
hound races.

(3) If a simulcasting licensee has a license to conduct live racing of only horses and the
licensee displays a simulcast greyhound race, unclaimed winning ticket proceeds shall be
distributed in the manner provided by K.S.A. 74-8822, and amendments thereto, for un-
claimed winning ticket proceeds from live greyhound races. Breakage for such races shall
be distributed for use to benefit greyhound racing as determined by the commission.

(4) If a simulcasting licensee has a license to conduct live racing of only greyhounds and
the licensee displays a simulcast horse race: (A) All breakage proceeds shall be remitted by
the licensee to the commission not later than the 15th day of the month following the race
from which the breakage is derived and the commission shall promptly remit any such
proceeds received to the state treasurer, who shall deposit the entire amount in the state
treasury and credit it to the Kansas horse breeding development fund created by K.S.A. 74-
8829, and amendments thereto; and (B) all unclaimed ticket proceeds shall be remitted by
the licensee to the commission on the 61st day after the end of the calendar year and the
commission shall promptly remit any such proceeds received to the state treasurer, who
shall deposit the entire amount in the state treasury and credit it to the Kansas horse breed-
ing development fund created by K.S.A. 74-8829, and amendments thereto.

(i) The commission may approve a request by two or more simulcasting licensees to
combine wagering pools within the state of Kansas pursuant to rules and regulations adopted
by the commission.

(j) (1) The commission may authorize any simulcasting licensee to participate in an
interstate combined wagering pool with one or more other racing jurisdictions.

(2) If a licensee participates in an interstate pool, the licensee may adopt the takeout
of the host jurisdiction or facility~~, except that the takeout shall not be more than 20% on~~
~~win, place and show bets and not more than 25% on all other bets~~. The amount and manner
of paying purses from the takeout in an interstate pool shall be as provided by subsection
(g).

(3) The tax imposed on amounts wagered in an interstate pool shall be as provided by
K.S.A. 74-8823, and amendments thereto. Parimutuel taxes may not be imposed on any
amounts wagered in an interstate combined wagering pool other than amounts wagered
within this jurisdiction.

(4) Breakage for interstate combined wagering pools shall be calculated in accordance
with the statutes and rules and regulations of the host jurisdiction and shall be allocated
among the participating jurisdictions in a manner agreed to among the jurisdictions. Break-
age allocated to this jurisdiction shall be distributed as provided by subsection (h).

(5) Upon approval of the respective recognized greyhound owners' group or recognized
horsemen's group, the commission may permit an organization licensee to simulcast to other
racetrack facilities or off-track wagering or intertrack wagering facilities in other jurisdictions
one or more races conducted by such licensee, use one or more races conducted by such
licensee for an intrastate combined wagering pool or use one or more races conducted by
such licensee for an interstate combined wagering pool at off-track wagering or intertrack
wagering locations outside the commission's jurisdiction and may allow parimutuel pools in
other jurisdictions to be combined with parimutuel pools in the commission's jurisdiction
for the purpose of establishing an interstate combined wagering pool.

(6) The participation by a simulcasting licensee in a combined interstate wagering pool
does not cause that licensee to be considered to be doing business in any jurisdiction other
than the jurisdiction in which the licensee is physically located.

(k) If the organization licensee, facility owner licensee if any and the recognized horse-
men's group or recognized greyhound owners' group are unable to agree concerning a
simulcasting application, the matter may be submitted to the commission for determination
at the written request of any party in accordance with rules and regulations of the
commission.

(l) This section shall be part of and supplemental to the Kansas parimutuel racing act.

Sec. 23. K.S.A. 74-8711, 74-8712, 74-8720, 79-4701, 79-4703, 79-4704, 79-4705, 79-
4705a, 79-4706, 79-4707, 79-4708, 79-4710, 79-4711, 79-4712a, 79-4713 and 79-4714 and
K.S.A. 1998 Supp. 74-8836 and 79-3606 are hereby repealed.'';

By renumbering the remaining section accordingly;

In the title, by striking all in lines 9 through 13 and inserting the following:

``AN ACT concerning lotteries; relating to the regulation thereof; amending K.S.A. 74-
8711, 74-8712, 74-8720, 79-4701, 79-4703, 79-4704, 79-4705, 79-4705a, 79-4706, 79-4707,
79-4708, 79-4710, 79-4711, 79-4712a and 79-4713 and K.S.A. 1998 Supp. 74-8836 and 79-
3606 and repealing the existing sections; also repealing K.S.A. 79-4714.''; and the substitute
bill be passed as amended.

REPORT ON ENGROSSED BILLS
SB 171 reported correctly engrossed May 2, 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 bill: HB 2575.

FINAL ACTION ON BILLS AND CONCURRENT RESOLUTIONS
On motion of Senator Emert an emergency was declared by a 2/3 constitutional majority,
and HB 2575; HCR 5018, 5041 were advanced to Final Action, subject to amendment,
debate and roll call.

]HB 2575, An act concerning certain public officers and employees; relating to partici-
pation in certain programs; relating to certain deductions from such officers and employees
paychecks; amending K.S.A. 25-4142 and K.S.A. 1998 Supp. 71-212 and 72-5395 and re-
pealing the existing sections, was considered on final action.

Senator Kerr moved to amend the bill as amended by House on Final Action, on page 3,
following line 1, by inserting material to read as follows:

``Sec. 3. K.S.A. 25-4142 is hereby amended to read as follows: 25-4142. K.S.A. 25-
4119e, 25-4119f, 25-4119g, 25-4142 ~~to 25-4179~~ through 25-4187 and section 4, ~~inclusive,~~
~~and amendments thereto and 25-4119e, 25-4119f, 25-4119g, 25-4148a, 25-4153a, 25-4157a,~~
~~25-4169a, 25-4180 to 25-4185, inclusive,~~ and amendments thereto, shall constitute and may
be cited as the ``campaign finance act.''

New Sec. 4. (a) Sections 4 and 5, and amendments thereto, shall be known and may
be cited as the voluntary political contributions act of 1999.

(b) No officer or employee of the state of Kansas, any county, any unified school district
having 35,000 or more pupils regularly enrolled in the preceding school year, any city of
the first class or the board of public utilities of the unified government of Wyandotte county/
Kansas City, Kansas, responsible for the disbursement of funds in payment of wages or
salaries shall withhold or divert a portion of an employee's wages or salaries for contributions
to political committees for use as political contributions except upon the written request of
the employee. The request shall be made only on a form prescribed by the Kansas govern-
mental ethics commission which form shall contain a clear and unambiguous statement that
the employee may choose not to make such request for deduction and may opt to not return
the form to the employer. The form may only be filled out as to the amount of deduction
by the employee and must be signed by the employee in order to be valid. The request shall
be valid for no more than 12 months from the date it is signed.

New Sec. 5. No officer or employee of any municipality or political subdivision of the
state described in K.S.A. 25-901, and amendments thereto, responsible for the disbursement
of funds in payment of wages or salaries shall withhold or divert a portion of an employee's
wages or salaries for contributions to political committees or for use as political contributions
except upon the written request of the employee. The request shall be made only on a form
prescribed by the Kansas governmental ethics commission which form shall contain a clear
and unambiguous statement that the employee may choose not to make such request for
deduction and may opt to not return the form to the employer. The form may only be filled
out as to the amount of deduction by the employee and must be signed by the employee in
order to be valid. The request shall be valid for no more than 24 months from the date it
is signed.'';

By renumbering sections accordingly;

Also on page 3, in line 2, before ``K.S.A.'' by inserting ``K.S.A. 25-4142 and'';

In the title, in line 10, by striking ``early retirement incentive programs'' and inserting
``certain public officers and employees; relating to participation in certain programs; relating
to certain deductions from such officers and employees paychecks''; in line 11, preceding
``K.S.A.'' by inserting ``K.S.A. 25-4142 and''.

A ruling of the chair was requested as to the germaness of the amendment to the bill.

The Chair ruled the amendment to be germane.

Upon the showing of five hands a roll call vote was requested.

On roll call, the vote was: Yeas 22, nays 15, present and passing 2; absent or not voting
1.

Yeas: Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Harrington, Huelskamp, Jordan,
Kerr, Langworthy, Morris, Praeger, Pugh, Ranson, Salisbury, Salmans, Stefes, Tyson, Um-
barger, Vidricksen, Vratil.

Nays: Barone, Biggs, Downey, Emert, Feleciano, Gilstrap, Gooch, Goodwin, Hensley,
Jones, Lee, Oleen, Petty, Steineger, Stephens.

Present and passing: Becker, Lawrence.

Absent or not voting: Hardenburger.

The motion carried and the amendment was adopted.

EXPLANATION OF VOTE
Mr. President: I vote ``no'' on the Kerr amendment to HB 2575, not because of the
subject matter but because it could keep this desperately needed legislation from becoming
law. If that happens, school districts, teachers and the taxpayers will spend thousands of
dollars and countless hours on lawyers and courts. A needless waste and distraction from
our children.--Tim Emert

Senators Hensley and Stephens request the record to show they concur with the ``Expla-
nation of Vote'' offered by Senator Emert on SB 2575.

On roll call, for Final Action on HB 2575, the vote was: Yeas 26, nays 13, present and
passing 0; absent or not voting 1.

Yeas: Becker, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Emert, Harrington,
Huelskamp, Jordan, Kerr, Langworthy, Lawrence, Morris, Oleen, Praeger, Pugh, Ranson,
Salisbury, Salmans, Steffes, Tyson, Umbarger, Vidricksen, Vratil.

Nays: Barone, Biggs, Downey, Feleciano, Gilstrap, Gooch, Goodwin, Hensley, Jones, Lee,
Petty, Steineger, Stephens.

Absent or not voting: Hardenburger.

The bill passed, as amended.

HCR 5018, A CONCURRENT RESOLUTION urging all public and private elementary
and secondary schools to create and update school crisis plans and to facilitate implemen-
tation of such plans by training personnel and conducting regular drills, was considered on
final action.

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, Jor-
dan, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Praeger, Pugh, Ranson, Sal-
isbury, Salmans, Steffes, Steineger, Stephens, Tyson, Umbarger, Vidricksen, Vratil.

Absent or not voting: Hardenburger.

The resolution was adopted.

HCR 5041, A CONCURRENT RESOLUTION memorializing Congress to rescind cer-
tain Health Care Financing Administration (HCFA) rules requiring Outcome and Assess-
ment Information Set (OASIS) reporting, was considered on final action.

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, Jor-
dan, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Praeger, Pugh, Ranson, Sal-
isbury, Salmans, Steffes, Steineger, Stephens, Tyson, Umbarger, Vidricksen, Vratil.

Absent or not voting: Hardenburger.

The resolution was adopted.

MESSAGE FROM THE HOUSE
Announcing passage of SB 361.

Also, passage of SB 351, as amended.

The House concurs in Senate amendments to HB 2548 and requests the Senate to return
the bill.

The House accedes to the request of the Senate for a conference on SB 102 and has
appointed Representatives Phill Kline, Neufeld and McKechnie as conferees on the part of
the House.

The House announces the appointment of Representatives Phill Kline, Neufeld and Rear-
don to replace Representatives Wagle, Franklin and Klein as conferees on HB 2489.

CHANGE OF CONFERENCE
The President announced the appointment of Senator Petty as a member of the Confer-
ence Committee on HB 2489 to replace Senator Hensley.

On motion of Senator Emert, the Senate recessed until 6:00 p.m.

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

MESSAGE FROM THE HOUSE
Announcing the House concurs in Senate amendments to HB 2115.

The House adopts the conference committee report on HB 2101.

The House adopts the conference committee report on HB 2166.

The House adopts the conference committee report on SB 45.

Announcing the House adopts the conference committee report on HB 2352.

The House adopts the conference committee report on Substitute HB 2469.

The House nonconcurs in Senate amendments to HB 2575, requests a conference and
has appointed Representatives Phill Kline, Neufeld and Helgerson as conferees on the part
of the House.

ORIGINAL MOTION
Senator Emert moved that subsection 4(k) of the Joint Rules of the Senate and House
of Representatives be suspended for the purpose of considering the following bills: H Sub
for SB 6, 15, 351.

CONSIDERATION OF MOTIONS TO CONCUR OR NONCONCUR
Senator Oleen moved the Senate Concur in house amendments to H Sub for SB 6.

H Sub for SB 6, An act concerning the state fire marshal; relating to the powers and
duties thereof; amending K.S.A. 31-133 and repealing the existing section.

On roll call, the vote was: Yeas 37, nays 2, present and passing 0; absent or not voting 1.

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

Nays: Biggs, Gooch.

Absent or not voting: Hardenburger.

The Senate concurred.

Senator Oleen moved the Senate Concur in house amendments to SB 15.

SB 15, An act concerning alcoholic beverages; relating to the regulation and consumption
thereof; amending K.S.A. 1998 Supp. 41-201 and 41-719 and repealing the existing sections.

On roll call, the vote was: Yeas 29, nays 10, present and passing 0; absent or not voting
1.

Yeas: Barone, Becker, Bleeker, Bond, Corbin, Donovan, Downey, Emert, Feleciano, Gil-
strap, Goodwin, Hensley, Jones, Kerr, Langworthy, Lawrence, Morris, Oleen, Petty, Prae-
ger, Pugh, Ranson, Salisbury, Steffes, Steineger, Tyson, Umbarger, Vidricksen, Vratil.

Nays: Biggs, Brownlee, Clark, Gooch, Harrington, Huelskamp, Jordan, Lee, Salmans,
Stephens.

Absent or not voting: Hardenburger.

The Senate concurred.

Senator Becker moved the Senate Concur in house amendments to SB 351.

SB 351, An act concerning legislative and congressional redistricting; relating to popu-
lation data used; amending K.S.A. 11-304 and repealing the existing section.

On roll call, the vote was: Yeas 26, nays 13, present and passing 0; absent or not voting
1.

Yeas: Becker, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Emert, Harrington,
Huelskamp, Jordan, Kerr, Langworthy, Lawrence, Morris, Oleen, Praeger, Pugh, Ranson,
Salisbury, Salmans, Steffes, Tyson, Umbarger, Vidricksen, Vratil.

Nays: Barone, Biggs, Downey, Feleciano, Gilstrap, Gooch, Goodwin, Hensley, Jones, Lee,
Petty, Steineger, Stephens.

Absent or not voting: Hardenburger.

The Senate concurred.

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 45;
HB 2092.

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 45, submits the following report:

The House recedes from all of its amendments to the bill;

And your committee on conference further agrees to amend the bill, as printed with
amendments by the Senate Committee of the Whole, as follows:

On page 1, by striking all of lines 15 to 42, inclusive;

On page 2, by striking all of lines 1 to 8, inclusive; after line 8, by inserting the following
sections:

``Section 1. On and after July 1, 1999, K.S.A. 1998 Supp. 79-3602 is hereby amended
to read as follows: 79-3602. (a) ``Persons'' means any individual, firm, copartnership, joint
adventure, association, corporation, estate or trust, receiver or trustee, or any group or
combination acting as a unit, and the plural as well as the singular number; and shall spe-
cifically mean any city or other political subdivision of the state of Kansas engaging in a
business or providing a service specifically taxable under the provisions of this act.

(b) ``Director'' means the state director of taxation.

(c) ``Sale'' or ``sales'' means the exchange of tangible personal property, as well as the
sale thereof for money, and every transaction, conditional or otherwise, for a consideration,
constituting a sale, including the sale or furnishing of electrical energy, gas, water, services
or entertainment taxable under the terms of this act and including, except as provided in
the following provision, the sale of the use of tangible personal property by way of a lease,
license to use or the rental thereof regardless of the method by which the title, possession
or right to use the tangible personal property is transferred. The term ``sale'' or ``sales'' shall
not mean the sale of the use of any tangible personal property used as a dwelling by way of
a lease or rental thereof for a term of more than 28 consecutive days.

(d) ``Retailer'' means a person regularly engaged in the business of selling tangible per-
sonal property at retail or furnishing electrical energy, gas, water, services or entertainment,
and selling only to the user or consumer and not for resale.

(e) ``Retail sale'' or ``sale at retail'' means all sales made within the state of tangible
personal property or electrical energy, gas, water, services or entertainment for use or con-
sumption and not for resale.

(f) ``Tangible personal property'' means corporeal personal property. Such term shall
include;: (1) Any computer software program which is not a custom computer software
program, as described by subsection (s) of K.S.A. 79-3603, and amendments thereto; and
(2) ~~and~~ any prepaid telephone calling card or prepaid authorization number, or recharge of
such card or number, as described by subsection (b) of K.S.A. 79-3603, and amendments
thereto.

(g) ``Selling price'' means the total cost to the consumer exclusive of discounts allowed
and credited, but including freight and transportation charges from retailer to consumer.

(h) ``Gross receipts'' means the total selling price or the amount received as defined in
this act, in money, credits, property or other consideration valued in money from sales at
retail within this state; and embraced within the provisions of this act. The taxpayer, may
take credit in the report of gross receipts for: (1) An amount equal to the selling price of
property returned by the purchaser when the full sale price thereof, including the tax col-
lected, is refunded in cash or by credit; and (2) an amount equal to the allowance given for
the trade-in of property.

(i) ``Taxpayer'' means any person obligated to account to the director for taxes collected
under the terms of this act.

(j) ``Isolated or occasional sale'' means the nonrecurring sale of tangible personal prop-
erty, or services taxable hereunder by a person not engaged at the time of such sale in the
business of selling such property or services. Any religious organization which makes a
nonrecurring sale of tangible personal property acquired for the purpose of resale shall be
deemed to be not engaged at the time of such sale in the business of selling such property.
Such term shall include: (1) Any sale by a bank, savings and loan institution, credit union
or any finance company licensed under the provisions of the Kansas uniform consumer
credit code of tangible personal property which has been repossessed by any such entity;
and (2) any sale of tangible personal property made by an auctioneer or agent on behalf of
not more than two principals or households if such sale is nonrecurring and any such prin-
cipal or household is not engaged at the time of such sale in the business of selling tangible
personal property.

(k) ``Service'' means those services described in and taxed under the provisions of K.S.A.
79-3603 and amendments thereto.

(l) ``Ingredient or component part'' means tangible personal property which is necessary
or essential to, and which is actually used in and becomes an integral and material part of
tangible personal property or services produced, manufactured or compounded for sale by
the producer, manufacturer or compounder in its regular course of business. The following
items of tangible personal property are hereby declared to be ingredients or component
parts, but the listing of such property shall not be deemed to be exclusive nor shall such
listing be construed to be a restriction upon, or an indication of, the type or types of property
to be included within the definition of ``ingredient or component part'' as herein set forth:

(1) Containers, labels and shipping cases used in the distribution of property produced,
manufactured or compounded for sale which are not to be returned to the producer, man-
ufacturer or compounder for reuse.

(2) Containers, labels, shipping cases, paper bags, drinking straws, paper plates, paper
cups, twine and wrapping paper used in the distribution and sale of property taxable under
the provisions of this act by wholesalers and retailers and which is not to be returned to
such wholesaler or retailer for reuse.

(3) Seeds and seedlings for the production of plants and plant products produced for
resale.

(4) Paper and ink used in the publication of newspapers.

(5) Fertilizer used in the production of plants and plant products produced for resale.

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

(m) ``Property which is consumed'' means tangible personal property which is essential
or necessary to and which is used in the actual process of and ~~immediately~~ consumed,
depleted or dissipated within one year in (1) the production, manufacture, processing, min-
ing, drilling, refining or compounding of tangible personal property, (2) the providing of
services or, (3) the irrigation of crops, for sale in the regular course of business, or (4) the
storage or processing of grain by a public grain warehouse or other grain storage facility,
and which is not reusable for such purpose. The following ~~items of tangible personal prop-~~
~~erty are hereby declared to be ``consumed'' but the listing of such property shall not be~~
~~deemed to be exclusive nor shall such listing be construed to be a restriction upon or an~~
~~indication of, the type or types of property to be included within the definition of ``property~~
~~which is consumed'' as herein set forth~~ is a listing of tangible personal property, included
by way of illustration but not of limitation, which qualifies as property which is consumed:

(A) Insecticides, herbicides, germicides, pesticides, fungicides, fumigants, antibiotics,
biologicals, pharmaceuticals, vitamins and chemicals for use in commercial or agricultural
production, processing or storage of fruit, vegetables, feeds, seeds, grains, animals or animal
products whether fed, injected, applied, combined with or otherwise used; ~~and~~

(B) electricity, gas and water; and

(C) petroleum products, lubricants, chemicals, solvents, reagents and catalysts.

(n) ``Political subdivision'' means any municipality, agency or subdivision of the state
which is, or shall hereafter be, authorized to levy taxes upon tangible property within the
state or which certifies a levy to a municipality, agency or subdivision of the state which is,
or shall hereafter be, authorized to levy taxes upon tangible property within the state. Such
term also shall include any public building commission, housing, airport, port, metropolitan
transit or similar authority established pursuant to law.

(o) ``Municipal corporation'' means any city incorporated under the laws of Kansas.

(p) ``Quasi-municipal corporation'' means any county, township, school district, drainage
district or any other governmental subdivision in the state of Kansas having authority to
receive or hold moneys or funds.

(q) ``Nonprofit blood bank'' means any nonprofit place, organization, institution or es-
tablishment that is operated wholly or in part for the purpose of obtaining, storing, proc-
essing, preparing for transfusing, furnishing, donating or distributing human blood or parts
or fractions of single blood units or products derived from single blood units, whether or
not any remuneration is paid therefor, or whether such procedures are done for direct
therapeutic use or for storage for future use of such products.

(r) ``Contractor, subcontractor or repairman'' means a person who agrees to furnish and
install tangible personal property or install tangible personal property at a specified price.
A person who maintains an inventory of tangible personal property which enables such
person to furnish and install the tangible personal property or install the tangible personal
property shall not be deemed a contractor, subcontractor or repairman but shall be deemed
a retailer.

(s) ``Educational institution'' means any nonprofit school, college and university that
offers education at a level above the twelfth grade, and conducts regular classes and courses
of study required for accreditation by, or membership in, the North Central Association of
Colleges and Schools, the state board of education, or that otherwise qualify as an ``educa-
tional institution,'' as defined by K.S.A. 74-50,103, and amendments thereto. Such phrase
shall include: (1) A group of educational institutions that operates exclusively for an edu-
cational purpose; (2) nonprofit endowment associations and foundations organized and op-
erated exclusively to receive, hold, invest and administer moneys and property as a per-
manent fund for the support and sole benefit of an educational institution; (3) nonprofit
trusts, foundations and other entities organized and operated principally to hold and own
receipts from intercollegiate sporting events and to disburse such receipts, as well as grants
and gifts, in the interest of collegiate and intercollegiate athletic programs for the support
and sole benefit of an educational institution; and (4) nonprofit trusts, foundations and other
entities organized and operated for the primary purpose of encouraging, fostering and con-
ducting scholarly investigations and industrial and other types of research for the support
and sole benefit of an educational institution.

New Sec. 2. For the tax year commencing after December 31, 1997, there shall be
allowed as a credit against the tax liability of a taxpayer imposed under the Kansas income
tax act, an amount equal to 75% of the total amount of property tax levied for property tax
year 1998 actually and timely paid by the taxpayer which is attributable to the working
interest of an oil lease the average daily production per well from which is 15 barrels or
less. For all taxable years commencing after December 31, 1998, there shall be allowed as
a credit against the tax liability of a taxpayer imposed under the Kansas income tax act, an
amount equal to 50% of the total amount of property tax levied for the property tax year
when the price per barrel of oil is $16 or less, as promulgated in the oil and gas appraisal
guide prescribed by the director of property valuation for the applicable tax year. The credit
allowed by the preceeding sentence shall apply to taxes actually and timely paid by the
taxpayer which are attributable to the working interest of an oil lease the average daily
production per well from which is 15 barrels or less. No credit shall be allowed for property
tax paid upon machinery and equipment attributable to the working interest for which a
credit is claimed pursuant to K.S.A. 1998 Supp. 79-32,206, and amendments thereto. If the
amount of such tax credit exceeds the taxpayer's income tax liability for the taxable year,
the amount thereof which exceeds such tax liability shall be refunded to the taxpayer. If the
taxpayer is a corporation having an election in effect under subchapter S of the federal
internal revenue code, a partnership or a limited liability company, the credit provided by
this section shall be claimed by the shareholders of such corporation, the partners of such
partnership or the members of such limited liability company in the same manner as such
shareholders, partners and members account for their proportionate shares of the income
or loss of the corporation, partnership or limited liability company.

Sec. 3. K.S.A. 79-201 is hereby amended to read as follows: 79-201. The following
described property, to the extent herein specified, shall be and is hereby exempt from all
property or ad valorem taxes levied under the laws of the state of Kansas:

First. All buildings used exclusively as places of public worship and all buildings used
exclusively by school districts and school district interlocal cooperatives organized under the
laws of this state, with the furniture and books therein contained and used exclusively for
the accommodation of religious meetings or for school district or school district interlocal
cooperative purposes, whichever is applicable, together with the grounds owned thereby if
not leased or otherwise used for the realization of profit, except that: (a) (1) Any school
building, or portion thereof, together with the grounds upon which the building is located,
shall be considered to be used exclusively by the school district for the purposes of this
section when leased by the school district to any political or taxing subdivision of the state,
including a school district interlocal cooperative, or to any association, organization or non-
profit corporation entitled to tax exemption with respect to such property; and (2) any school
building, together with the grounds upon which the building is located, shall be considered
to be used exclusively by a school district interlocal cooperative for the purposes of this
section when being acquired pursuant to a lease-purchase agreement; and (b) any building,
or portion thereof, used as a place of worship, together with the grounds upon which the
building is located, shall be considered to be used exclusively for the religious purposes of
this section when used as a not-for-profit day care center for children which is licensed
pursuant to K.S.A. 65-501 et seq., and amendments thereto, or when used to house an area
where the congregation of a church society and others may purchase tracts, books and other
items relating to the promulgation of the church society's religious doctrines.

Second. All real property, and all tangible personal property, actually and regularly used
exclusively for literary, educational, scientific, religious, benevolent or charitable purposes,
including property used exclusively for such purposes by more than one agency or organi-
zation for one or more of such exempt purposes. Except with regard to real property which
is owned by a religious organization, is to be used exclusively for religious purposes and is
not used for a nonexempt purpose prior to its exclusive use for religious purposes which
property shall be deemed to be actually and regularly used exclusively for religious purposes
for the purposes of this paragraph, this exemption shall not apply to such property, not
actually used or occupied for the purposes set forth herein, nor to such property held or
used as an investment even though the income or rentals received therefrom is used wholly
for such literary, educational, scientific, religious, benevolent or charitable purposes. In the
event any such property which has been exempted pursuant to the preceding sentence is
not used for religious purposes prior to its conveyance which results in its use for nonreli-
gious purposes, there shall be a recoupment of property taxes in an amount equal to the tax
which would have been levied upon such property except for such exemption for all taxable
years for which such exemption was in effect. Such recoupment tax shall become due and
payable in such year as provided by K.S.A. 79-2004, and amendments thereto. A lien for
such taxes shall attach to the real property subject to the same on November 1 in the year
such taxes become due and all such taxes remaining due and unpaid after the date prescribed
for the payment thereof shall be collected in the manner provided by law for the collection
of delinquent taxes. Moneys collected from the recoupment tax hereunder shall be credited
by the county treasurer to the several taxing subdivisions within which such real property is
located in the proportion that the total tangible property tax levies made in the preceding
year for each such taxing subdivision bear to the total of all such levies made in that year
by all such taxing subdivisions. Such moneys shall be credited to the general fund of the
taxing subdivision or if such taxing subdivision is making no property tax levy for the support
of a general fund such moneys may be credited to any other tangible property tax fund of
general application of such subdivision. This exemption shall not be deemed inapplicable
to property which would otherwise be exempt pursuant to this paragraph because an agency
or organization: (a) Is reimbursed for the provision of services accomplishing the purposes
enumerated in this paragraph based upon the ability to pay by the recipient of such services;
or (b) is reimbursed for the actual expense of using such property for purposes enumerated
in this paragraph; or (c) uses such property for a nonexempt purpose which is minimal in
scope and insubstantial in nature if such use is incidental to the exempt purposes of this
paragraph; or (d) charges a reasonable fee for admission to cultural or educational activities
or permits the use of its property for such activities by a related agency or organization, if
any such activity is in furtherance of the purposes of this paragraph.

Third. All moneys and credits belonging exclusively to universities, colleges, academies
or other public schools of any kind, or to religious, literary, scientific or benevolent and
charitable institutions or associations, appropriated solely to sustain such institutions or
associations, not exceeding in amount or in income arising therefrom the limit prescribed
by the charter of such institution or association.

Fourth. The reserve or emergency funds of fraternal benefit societies authorized to do
business under the laws of the state of Kansas.

Fifth. All buildings of private nonprofit universities or colleges which are owned and
operated by such universities and colleges as student union buildings, presidents' homes
and student dormitories.

Sixth. All real and tangible personal property actually and regularly used exclusively by
the alumni association associated by its articles of incorporation with any public or nonprofit
Kansas college or university approved by the Kansas board of regents to confer academic
degrees or with any community college approved by its board of trustees to grant certificates
of completion of courses or curriculum, to provide accommodations and services to such
college or university or to the alumni, staff or faculty thereof.

Seventh. All parsonages owned by a church society and actually and regularly occupied
and used predominantly as a residence by a minister or other clergyman of such church
society who is actually and regularly engaged in conducting the services and religious min-
istrations of such society, and the land upon which such parsonage is located to the extent
necessary for the accommodation of such parsonage.

Eighth. All real property, all buildings located on such property and all personal property
contained therein, actually and regularly used exclusively by any individually chartered or-
ganization of honorably discharged military veterans of the United States armed forces or
auxiliary of any such organization, which is exempt from federal income taxation pursuant
to section 501(c)(19) of the federal internal revenue code of 1986, for clubhouse, place of
meeting or memorial hall purposes, and real property to the extent of not more than two
acres, and all buildings located on such property, actually and regularly used exclusively by
any such veterans' organization or its auxiliary as a memorial park.

Ninth. All real property and tangible personal property actually and regularly used by a
community service organization for the predominant purpose of providing humanitarian
services, which is owned and operated by a corporation organized not for profit under the
laws of the state of Kansas or by a corporation organized not for profit under the laws of
another state and duly admitted to engage in business in this state as a foreign not-for-profit
corporation if: (a) The directors of such corporation serve without pay for such services; (b)
the corporation is operated in a manner which does not result in the accrual of distributable
profits, realization of private gain resulting from the payment of compensation in excess of
a reasonable allowance for salary or other compensation for services rendered or the reali-
zation of any other form of private gain; (c) no officer, director or member of such corpo-
ration has any pecuniary interest in the property for which exemption is claimed; (d) the
corporation is organized for the purpose of providing humanitarian services; (e) the actual
use of property for which an exemption is claimed must be substantially and predominantly
related to the purpose of providing humanitarian services, except that, the use of such
property for a nonexempt purpose which is minimal in scope and insubstantial in nature
shall not result in the loss of exemption if such use is incidental to the purpose of providing
humanitarian services by the corporation; (f) the corporation is exempt from federal income
taxation pursuant to section 501(c)(3) of the internal revenue code of 1986 and; (g) contri-
butions to the corporation are deductible under the Kansas income tax act. As used in this
clause, ``humanitarian services'' means the conduct of activities which substantially and pre-
dominantly meet a demonstrated community need and which improve the physical, mental,
social, cultural or spiritual welfare of others or the relief, comfort or assistance of persons
in distress or any combination thereof including but not limited to health and recreation
services, child care, individual and family counseling, employment and training programs
for handicapped persons and meals or feeding programs. Notwithstanding any other pro-
vision of this clause, motor vehicles shall not be exempt hereunder unless such vehicles are
exclusively used for the purposes described therein.

Tenth. For all taxable years commencing after December 31, 1986, any building, and the
land upon which such building is located to the extent necessary for the accommodation of
such building, owned by a church or nonprofit religious society or order which is exempt
from federal income taxation pursuant to section 501(c)(3) of the federal internal revenue
code of 1986, and actually and regularly occupied and used exclusively for residential and
religious purposes by a community of persons who are bound by vows to a religious life and
who conduct or assist in the conduct of religious services and actually and regularly engage
in religious, benevolent, charitable or educational ministrations or the performance of health
care services.

Eleventh. For all taxable years commencing after December 31, 1998, all real property
upon which is located facilities which utilize renewable energy resources or technologies for
the purpose and as the primary means to produce and generate electricity and which is used
predominantly for such purpose, to the extent necessary to accommodate such facilities, and
all tangible personal property which comprises such facilities. For purposes of this section,
``renewable energy resources or technologies'' shall include wind, solar, thermal, photovol-
taic, biomass, hydropower, geothermal and landfill gas resources or technologies. For pur-
poses of valuation of property subject to valuation under K.S.A. 79-5a01 et seq., and amend-
ments thereto, the value of the exempt property set forth in this clause shall be removed
from the unit value prior to apportionment under K.S.A. 79-5a25, and amendments thereto.

The provisions of this section, except as otherwise more specifically provided, shall apply
to all taxable years commencing after December 31, 1995.

Sec. 4. K.S.A. 79-5a01 is hereby amended to read as follows: 79-5a01. (a) As used in
this act, the terms ``public utility'' or ``public utilities'' shall mean every individual, company,
corporation, association of persons, lessees or receivers that now or hereafter are in control,
manage or operate a business of:

(1) A railroad or railroad corporation if such railroad or railroad corporation owns or
holds, by deed or other instrument, an interest in right-of-way, track, franchise, roadbed or
trackage in this state;

(2) transmitting to, from, through or in this state telegraphic messages;

(3) transmitting to, from, through or in this state telephonic messages;

(4) transporting or distributing to, from, through or in this state natural gas, oil or other
commodities in pipes or pipelines, or engaging primarily in the business of storing natural
gas in an underground formation;

(5) generating, conducting or distributing to, from, through or in this state electric
power, except for private use;

(6) transmitting to, from, through or in this state water if for profit or subject to regu-
lation of the state corporation commission;

(7) transporting to, from, through or in this state cargo or passengers by means of any
vessel or boat used in navigating any of the navigable watercourses within or bordering upon
this state.

(b) The terms ``public utility'' or ``public utilities'' shall not include: (1) Rural water
districts established under the laws of the state of Kansas; or (2) any individual, company,
corporation, association of persons, lessee or receiver owning or operating an oil or natural
gas production gathering line which is situated within one county in this state and does not
cross any state boundary line; or (3) any individual, company, corporation, association of
persons, lessee or receiver owning any vessel or boat operated upon the surface of any
manmade waterway located entirely within one county in the state.

Sec. 5. K.S.A. 79-32,201 is hereby amended to read as follows: 79-32,201. (a) Any tax-
payer who makes expenditures for a qualified alternative-fueled motor vehicle ~~property~~ or
alternative-fuel fueling station shall be allowed a credit against the income tax imposed by
article 32 of chapter 79 of the Kansas Statutes Annotated, as follows:

(1) For any qualified alternative-fueled motor vehicle ~~property~~ placed in service on or
after January 1, 1996, and before January 1, ~~1999~~ 2005, an amount equal to 50% of the ~~total~~
~~amount expended~~ incremental cost or conversion cost for each qualified alternative-fueled
motor vehicle ~~property~~ but not to exceed ~~$2,500~~ $3,000 for each such motor vehicle with
a gross vehicle weight of less than 10,000 lbs.; $5,000 for a heavy duty motor vehicle with
a gross vehicle weight of greater than 10,000 lbs. but less than 26,000 lbs.; and $50,000 for
motor vehicles having a gross vehicle weight of greater than 26,000 lbs.;

(2) for any qualified alternative-fueled motor vehicle ~~property~~ placed in service on or
after January 1, ~~1999~~ 2005, an amount equal to 40% of the ~~total amount expended~~ incre-
mental cost or conversion cost for each qualified alternative-fueled motor vehicle ~~property~~,
but not to exceed ~~$2,000~~ $2,400 for each such motor vehicle with a gross vehicle weight of
less than 10,000 lbs.; $4,000 for a heavy duty motor vehicle with a gross vehicle weight of
greater than 10,000 lbs. but less than 26,000 lbs.; and $40,000 for motor vehicles having a
gross vehicle weight of greater than 26,000 lbs.;

(3) for any qualified alternative-fuel fueling station placed in service on or after January
1, 1996, and before January 1, 2005, an amount equal to 50% of the total amount expended
for each qualified alternative-fuel fueling station but not to exceed $200,000 for each fueling
station;

(4) for any qualified alternative-fuel fueling station placed in service on or after January
1, 2005, an amount equal to 40% of the total amount expended for each qualified alternative-
fuel fueling station, but not to exceed $160,000 for each fueling station.

(b) If no credit has been claimed pursuant to subsection (a), a credit in an amount not
exceeding the lesser of 5% of the cost of the vehicle or $750 shall be allowed to a taxpayer
who purchases a motor vehicle equipped by the vehicle manufacturer with ~~qualified alter-~~
~~native-fueled motor vehicle property~~ an alternative fuel system and who is unable or elects
not to determine the exact basis attributable to such property. The credit under this sub-
section shall be allowed only to the first individual to take title to such motor vehicle, other
than for resale.

(c) The tax credit under subsection (a) or (b) shall be deducted from the taxpayer's
income tax liability for the taxable year in which the expenditures are made by the taxpayer.
If the amount of the tax credit exceeds the taxpayer's income tax liability for the taxable
year, the amount which exceeds the tax liability may be carried over for deduction from the
taxpayer's income tax liability in the next succeeding taxable year or years until the total
amount of the tax credit has been deducted from tax liability, except that no such tax credit
shall be carried over for deduction after the third taxable year succeeding the taxable year
in which the expenditures are made.

(d) As used in this section:

(1) ``Alternative fuel'' has the meaning provided by 42 U.S.C. 13211.

~~(2) ``Qualified alternative-fueled motor vehicle property'' means:~~

~~(A) Equipment installed to modify a motor vehicle which is propelled by gasoline so~~
~~that the vehicle may be propelled by an alternative fuel;~~

~~(B) a motor vehicle originally equipped to be propelled only by an alternative fuel, but~~
~~only to the extent of the portion of the basis of such motor vehicle which is attributable to~~
~~the storage of such fuel, the delivery to the engine of such motor vehicle of such fuel and~~
~~the exhaust of gases from combustion of such fuel; or~~

~~(C) property which is directly related to the delivery of an alternative fuel into the fuel~~
~~tank of a motor vehicle propelled by such fuel, including compression equipment and storage~~
~~tanks for such fuel at the point where such fuel is so delivered but only if such property is~~
~~not used to deliver such fuel into any other type of storage tank or receptacle and such fuel~~
~~is not used for any purpose other than to propel a motor vehicle.~~

(2) ``Qualified alternative-fueled motor vehicle'' means a motor vehicle that operates on
an alternative fuel, meets or exceeds the clean fuel vehicle standards in the federal clean air
act amendments of 1990, Title II and meets one of the following categories:

(A) Bi-fuel motor vehicle: A motor vehicle with two separate fuel systems designed to
run on either an alternative fuel or conventional fuel, using only one fuel at a time;

(B) dedicated motor vehicle: A motor vehicle with an engine designed to operate on a
single alternative fuel only; or

(C) flexible fuel motor vehicle: A motor vehicle that may operate on a blend of an alter-
native fuel with a conventional fuel, such as E-85 (85% ethanol and 15% gasoline) or M-85
(85% methanol and 15% gasoline), as long as such motor vehicle is capable of operating on
at least an 85% alternative fuel blend.

(3) ``Qualified alternative-fuel fueling station'' means the property which is directly re-
lated to the delivery of alternative fuel into the fuel tank of a motor vehicle propelled by
such fuel, including the compression equipment, storage vessels and dispensers for such fuel
at the point where such fuel is delivered but only if such property is primarily used to deliver
such fuel for use in a qualified alternative-fueled motor vehicle.

(4) ``Incremental cost'' means the cost that results from subtracting the manufacturer's
list price of the motor vehicle operating on conventional gasoline or diesel fuel from the
manufacturer's list price of the same model motor vehicle designed to operate on an alter-
native fuel.

(5) ``Conversion cost'' means the cost that results from modifying a motor vehicle which
is propelled by gasoline or diesel to be propelled by an alternative fuel.

~~(3)~~ (6) ``Taxpayer'' means any person who owns and operates a ~~fleet of 10 or more motor~~
~~vehicles and the average fuel consumption for such fleet of motor vehicles is equal to or~~
~~greater than 2,000 gallons per year~~ qualified alternative-fueled vehicle licensed in the state
of Kansas or who makes an expenditure for a qualified alternative-fuel fueling station.

~~(4)~~ (7) ``Person'' means every natural person, association, partnership, limited liability
company, limited partnership or corporation.

(e) The provisions of this section shall apply to all taxable years commencing after De-
cember 31, 1995.

~~(f) The provisions of this section shall become effective on and after January 1, 1996.~~

Sec. 6. K.S.A. 1998 Supp. 79-3606 is hereby amended to read as follows: 79-3606. The
following shall be exempt from the tax imposed by this act:

(a) All sales of motor-vehicle fuel or other articles upon which a sales or excise tax has
been paid, not subject to refund, under the laws of this state except cigarettes as defined
by K.S.A. 79-3301 and amendments thereto, cereal malt beverages and malt products as
defined by K.S.A. 79-3817 and amendments thereto, including wort, liquid malt, malt syrup
and malt extract, which is not subject to taxation under the provisions of K.S.A. 79-41a02
and amendments thereto, motor vehicles taxed pursuant to K.S.A. 79-5117, and amend-
ments thereto, tires taxed pursuant to K.S.A. 1998 Supp. 65-3424d, and amendments
thereto, and drycleaning and laundry services taxed pursuant to K.S.A. 1998 Supp. 65-
34,150, and amendments thereto;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(2) For purposes of this subsection ``machinery and equipment used directly and pri-
marily'' shall include, but not be limited to:

(A) Mechanical machines or components thereof contributing to a manufacturing, as-
sembling or finishing process;

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

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

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

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

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

(A) Hand tools;

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

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

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

(E) furniture and buildings; and

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(aaa) all sales of tangible personal property and services purchased by a religious or-
ganization which is exempt from federal income taxation pursuant to section 501 (c)(3) of
the federal internal revenue code, and used exclusively for religious purposes, and all sales
of tangible personal property or services purchased by a contractor for the purpose of con-
structing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or re-
modeling facilities for any such organization which would be exempt from taxation under
the provisions of this section if purchased directly by such organization. Nothing in this
subsection shall be deemed to exempt the purchase of any construction machinery, equipment
or tools used in the constructing, equipping, reconstructing, maintaining, repairing, enlarg-
ing, furnishing or remodeling facilities for any such organization. When any such organi-
zation shall contract for the purpose of constructing, equipping, reconstructing, maintaining,
repairing, enlarging, furnishing or remodeling facilities, it shall obtain from the state and
furnish to the contractor an exemption certificate for the project involved, and the contractor
may purchase materials for incorporation in such project. The contractor shall furnish the
number of such certificate to all suppliers from whom such purchases are made, and such
suppliers shall execute invoices covering the same bearing the number of such certificate.
Upon completion of the project the contractor shall furnish to such organization concerned
a sworn statement, on a form to be provided by the director of taxation, that all purchases
so made were entitled to exemption under this subsection. All invoices shall be held by the
contractor for a period of five years and shall be subject to audit by the director of taxation.
If any materials purchased under such a certificate are found not to have been incorporated
in the building or other project or not to have been returned for credit or the sales or
compensating tax otherwise imposed upon such materials which will not be so incorporated
in the building or other project reported and paid by such contractor to the director of
taxation not later than the 20th day of the month following the close of the month in which
it shall be determined that such materials will not be used for the purpose for which such
certificate was issued, such organization concerned shall be liable for tax on all materials
purchased for the project, and upon payment thereof it may recover the same from the
contractor together with reasonable attorney fees. Any contractor or any agent, employee
or subcontractor thereof, who shall use or otherwise dispose of any materials purchased
under such a certificate for any purpose other than that for which such a certificate is issued
without the payment of the sales or compensating tax otherwise imposed upon such materials,
shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the pen-
alties provided for in subsection (g) of K.S.A. 79-3615, and amendments thereto. Sales tax
paid on and after July 1, 1998, but prior to the effective date of this act upon the gross
receipts received from any sale exempted by the amendatory provisions of this subsection
shall be refunded. Each claim for a sales tax refund shall be verified and submitted to the
director of taxation upon forms furnished by the director and shall be accompanied by any
additional documentation required by the director. The director shall review each claim and
shall refund that amount of sales tax paid as determined under the provisions of this sub-
section. All refunds shall be paid from the sales tax refund fund upon warrants of the director
of accounts and reports pursuant to vouchers approved by the director or the director's
designee; ~~and~~

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

(ccc) on and after July 1, 1999, all sales of tangible personal property and services
purchased by a primary care clinic or health center the primary purpose of which is to
provide services to medically underserved individuals and families, and which is exempt
from federal income taxation pursuant to section 501 (c)(3) of the federal internal revenue
code, and all sales of tangible personal property or services purchased by a contractor for
the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging,
furnishing or remodeling facilities for any such clinic or center which would be exempt from
taxation under the provisions of this section if purchased directly by such clinic or center.
Nothing in this subsection shall be deemed to exempt the purchase of any construction
machinery, equipment or tools used in the constructing, equipping, reconstructing, main-
taining, repairing, enlarging, furnishing or remodeling facilities for any such clinic or center.
When any such clinic or center shall contract for the purpose of constructing, equipping,
reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities, it shall
obtain from the state and furnish to the contractor an exemption certificate for the project
involved, and the contractor may purchase materials for incorporation in such project. The
contractor shall furnish the number of such certificate to all suppliers from whom such
purchases are made, and such suppliers shall execute invoices covering the same bearing the
number of such certificate. Upon completion of the project the contractor shall furnish to
such clinic or center concerned a sworn statement, on a form to be provided by the director
of taxation, that all purchases so made were entitled to exemption under this subsection. All
invoices shall be held by the contractor for a period of five years and shall be subject to
audit by the director of taxation. If any materials purchased under such a certificate are
found not to have been incorporated in the building or other project or not to have been
returned for credit or the sales or compensating tax otherwise imposed upon such materials
which will not be so incorporated in the building or other project reported and paid by such
contractor to the director of taxation not later than the 20th day of the month following the
close of the month in which it shall be determined that such materials will not be used for
the purpose for which such certificate was issued, such clinic or center concerned shall be
liable for tax on all materials purchased for the project, and upon payment thereof it may
recover the same from the contractor together with reasonable attorney fees. Any contractor
or any agent, employee or subcontractor thereof, who shall use or otherwise dispose of any
materials purchased under such a certificate for any purpose other than that for which such
a certificate is issued without the payment of the sales or compensating tax otherwise imposed
upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor, shall
be subject to the penalties provided for in subsection (g) of K.S.A. 79-3615, and amendments
thereto;

(ddd) on and after January 1, 1999, and before January 1, 2000, all sales of materials
and services purchased by any class II or III railroad as classified by the federal surface
transportation board for the construction, renovation, repair or replacement of class II or
III railroad track and facilities used directly in interstate commerce. In the event any such
track or facility for which materials and services were purchased sales tax exempt is not
operational for five years succeeding the allowance of such exemption, the total amount of
sales tax which would have been payable except for the operation of this subsection shall be
recouped in accordance with rules and regulations adopted for such purpose by the secretary
of revenue; and

(eee) on and after January 1, 1999, and before January 1, 2000, all sales of materials
and services purchased for the original construction, reconstruction, repair or replacement
of grain storage facilities, including railroad sidings providing access thereto.

Sec. 7. K.S.A. 1998 Supp. 79-32,195 is hereby amended to read as follows: 79-32,195.
As used in this act, the following words and phrases shall have the meanings ascribed to
them herein: (a) ``Business firm'' means any business entity authorized to do business in the
state of Kansas which is subject to the state income tax imposed by the provisions of the
Kansas income tax act, any national banking association, state bank, trust company or savings
and loan association paying an annual tax on its net income pursuant to article 11 of chapter
79 of the Kansas Statutes Annotated, or any insurance company paying the premium tax
and privilege fees imposed pursuant to K.S.A. 40-252, and amendments thereto;

(b) ``community services'' means:

(1) The conduct of activities which meet a demonstrated community need and which
are designed to achieve improved educational and social services for Kansas children and
their families, and which are coordinated with communities including, but not limited to,
social and human services organizations that address the causes of poverty through programs
and services that assist low income persons in the areas of employment, food, housing,
emergency assistance and health care;

(2) crime prevention; and

(3) health care services.

(c) ``crime prevention'' means any nongovernmental activity which aids in the prevention
of crime ~~in an impoverished area~~.

(d) ``community service organization'' means any organization performing community
services in Kansas and which:

(1) Has obtained a ruling from the internal revenue service of the United States de-
partment of the treasury that such organization is exempt from income taxation under the
provisions of section 501(c)(3) of the federal internal revenue code; or

(2) is incorporated in the state of Kansas or another state as a nonstock, nonprofit
corporation; or

(3) has been designated as a community development corporation by the United States
government under the provisions of title VII of the economic opportunity act of 1964; or

(4) is chartered by the United States congress.

(e) ``contributions'' shall mean and include the donation of cash, services or property
other than used clothing. Stocks and bonds contributed shall be valued at the stock market
price on the date of transfer. Services contributed shall be valued at the standard billing rate
for not-for-profit clients. Personal property items contributed shall be valued at the lesser of
its fair market value or cost to the donor and may be inclusive of costs incurred in making
the contribution, but shall not include sales tax. Contributions of real estate are allowable
for credit only when title thereto is in fee simple absolute and is clear of any encumbrances.
The amount of credit allowable shall be based upon the lesser of two current independent
appraisals conducted by state licensed appraisers.

~~(e)~~ (f) ``health care services'' shall include, but not be limited to, the following: Services
provided by local health departments, city, county or district hospitals, city or county nursing
homes, or other residential institutions, preventive health care services offered by a com-
munity service organization including immunizations, prenatal care, the postponement of
entry into nursing homes by home health care services, and community based services for
persons with a disability, mental health services, indigent health care, physician or health
care worker recruitment, health education, emergency medical services, services provided
by rural health clinics, integration of health care services, home health services and services
provided by rural health networks.

~~(f)~~ (g) ``rural community'' means any city having a population of fewer than 15,000
located in a county that is not part of a standard metropolitan statistical area as defined by
the United States department of commerce or its successor agency. However, any such city
located in a county defined as a standard metropolitan statistical area shall be deemed a
rural community if a substantial number of persons in such county derive their income from
agriculture and, in any county where there is only one city within the county which has a
population of more than 15,000 and which classifies as a standard metropolitan statistical
area, all other cities in that county having a population of less than 15,000 shall be deemed
a rural community.

New Sec. 8. Any business firm or business entity not subject to Kansas income, privilege
or premiums tax, hereinafter designated the assignor, may sell, assign, convey or otherwise
transfer tax credits allowed and earned pursuant to K.S.A. 79-32,196, and amendments
thereto. Such credits shall be deemed to be allowed and earned by any such business entity
which is only disqualified therefrom by reason of not being subject to such Kansas taxes.
The business firm acquiring earned credits, hereinafter designated the assignee, may use
the amount of the acquired credits to offset up to 100% of its income, privilege or premiums
tax liability for the taxable year in which such acquisition was made. Only the full credit
amount for any one contribution may be transferred and such credit may be transferred
one time. Unused credit amounts claimed by the assignee may be carried forward for up to
five years, except that all such amounts shall be claimed within 10 years following the tax
year in which the contribution was made. The assignor shall enter into a written agreement
with the assignee establishing the terms and conditions of the agreement and shall perfect
such transfer by notifying the director of community development of the department of
commerce and housing in writing within 30 calendar days following the effective date of
the transfer and shall provide any information as may be required by the director of com-
munity development of the department of commerce and housing to administer and carry
out the provisions of this section. The amount received by the assignor of such tax credit
shall be taxable as income of the assignor, and the excess of the value of such credit over
the amount paid by the assignee for such credit shall be taxable as income of the assignee.

Sec. 9. K.S.A. 79-32,197 is hereby amended to read as follows: 79-32,197. The amount
of credit allowed pursuant to K.S.A. 79-32,196, and amendments thereto, shall not exceed
50% of the total amount contributed during the taxable year by the business firm to a
community service organization or governmental entity for programs approved pursuant to
K.S.A. 79-32,198, and amendments thereto. The amount of credit allowed pursuant to K.S.A.
79-32,196, and amendments thereto, shall not exceed 70% of the total amount contributed
during the taxable year by the business firm in a rural community to a community service
organization or governmental entity located therein for programs approved pursuant to
K.S.A. 79-32,198, and amendments thereto. ~~Any tax credit not used for the taxable year the~~
~~contribution was made may be carried over to any succeeding taxable year until the total~~
~~amount of the credit is used.~~ If the amount of the credit allowed by K.S.A. 1998 Supp. 79-
32,196, and amendments thereto, exceeds the taxpayer's income tax liability imposed under
the Kansas income tax act, such excess amount shall be refunded to the taxpayer. In no event
shall the total amount of credits allowed under this section exceed $5,000,000 for any one
fiscal year.

New Sec. 10. The provisions of sections 7 through 9 of this act shall be applicable to
all taxable years commencing after December 31, 1998.

New Sec. 11. The legislature hereby declares that the availability of improved access
to and choice of higher education opportunities in this state will benefit the residents of the
state and that the establishment of a postsecondary education savings program will assist
residents in meeting the expenses incurred in availing themselves of higher education op-
portunities. Therefore, it is the intention of sections 11 to 19, and amendments thereto, to
provide for development and administration of a postsecondary education savings program
and to vest the state treasurer with powers to enable the treasurer to accomplish such
purpose.

New Sec. 12. There is hereby established a postsecondary education savings program
and such program shall be known and may be cited as the Kansas postsecondary education
savings program. The program shall be implemented and become operational on July 1,
2000.

New Sec. 13. The purpose of the Kansas postsecondary education savings program is
to authorize the establishment of family postsecondary education savings accounts and to
provide guidelines for the maintenance of such accounts to:

(a) Enable residents of this state and other states to benefit from the tax incentive
provided for qualified state tuition programs as defined in section 529 of the federal internal
revenue code of 1986, as amended; and

(b) attract residents of this state to institutions of postsecondary education.

New Sec. 14. As used in sections 11 to 19, and amendments thereto:

(a) ``Account'' or ``family postsecondary education savings account'' means an individual
savings account established in accordance with the provisions of sections 11 to 19, and
amendments thereto.

(b) ``Account owner'' means the individual or individuals who enter into a postsecondary
education savings agreement pursuant to the provisions of sections 11 to 19, and amend-
ments thereto. If the account is owned by one individual, the account owner may also be
the designated beneficiary of the account.

(c) ``Designated beneficiary'' means, with respect to an account, the individual desig-
nated at the time the account is established as the individual whose higher education ex-
penses are expected to be paid from the account or in the case of a change in beneficiaries,
the individual who is the new beneficiary.

(d) ``Financial organization'' means an organization authorized to do business in the
state of Kansas and (1) which is an authorized fiduciary to act as a trustee pursuant to the
provisions of the federal employee retirement income security act of 1974, an insurance
company, or a registered investment advisor; and (2) (A) is licensed or chartered by the
commissioner of insurance, (B) is licensed or chartered by the state bank commissioner, (C)
is chartered by an agency of the federal government, (D) is subject to the jurisdiction and
regulation of the securities and exchange commission of the federal government, or (E) is
any other entity otherwise authorized to act in this state as a trustee pursuant to the pro-
visions of the federal employee retirement income security act of 1974.

(e) ``Institution of postsecondary education'' means any institution of postsecondary ed-
ucation which is accredited by a nationally recognized accrediting agency or association,
offers credit toward an undergraduate or graduate degree or other recognized postsecondary
education credential, and qualifies as an eligible institution for federal student aid programs.

(f) ``Member of the family'' has the meaning ascribed thereto in section 529 of the
federal internal revenue code of 1986, as amended.

(g) ``Program'' means the Kansas postsecondary education savings program established
pursuant to sections 11 to 19, and amendments thereto.

(h) ``Qualified higher education expenses'' means any qualified higher education ex-
pense included in section 529 of the federal internal revenue code of 1986, as amended.

(i) ``Qualified withdrawal'' means a withdrawal from an account to pay the qualified
higher education expenses of the designated beneficiary of the account.

(j) ``Nonqualified withdrawal'' means a withdrawal from an account but does not mean:

(1) A qualified withdrawal;

(2) a withdrawal made as the result of the death or disability of the designated benefi-
ciary of an account; or

(3) a withdrawal made on the account of a scholarship received by the designated ben-
eficiary to the extent the amount of the withdrawal does not exceed the amount of the
scholarship.

(k) ``Treasurer'' means the state treasurer.

(l) ``Management contract'' means the contract executed by the treasurer and a financial
organization selected to act as a depository and manager of the program.

(m) ``Postsecondary education savings agreement'' means an agreement between the
state treasurer and the account owner or owners.

(n) ``Program manager'' means a financial organization selected by the treasurer to act
as a depository and manager of the program.

New Sec. 15. (a) The state treasurer shall implement and administer the program under
the terms and conditions established by sections 11 to 19, and amendments thereto.

(b) In furtherance of such implementation and administration, the state treasurer shall
have the authority and responsibility to:

(1) Develop and implement the program in a manner consistent with the provisions of
sections 11 to 19, and amendments thereto through adoption of rules and regulations;

(2) engage the services of consultants on a contract basis for rendering professional and
technical assistance and advice;

(3) seek rulings and other guidance from the United States department of treasury and
the federal internal revenue service relating to the program;

(4) make changes to the program required for the participants in the program to obtain
the federal income tax benefits or treatment provided by section 529 of the federal internal
revenue code of 1986, as amended, or any similar successor legislation;

(5) charge, impose and collect administrative fees and service charges in connection
with any agreement, contract or transaction relating to the program;

(6) develop marketing plans and promotion material;

(7) establish the methods by which the funds held in accounts shall be dispersed;

(8) establish the method by which funds shall be allocated to pay for administrative
costs;

(9) do all things necessary and proper to carry out the purposes of sections 11 to 19,
and amendments thereto;

(10) adopt rules and regulations necessary to administer sections 11 to 19, and amend-
ments thereto; and

(11) evaluate the Kansas postsecondary education savings program annually, and make
a report thereon to the governor and legislature for the period.

New Sec. 16. (a) The state treasurer may implement the program through use of fi-
nancial organizations as account depositories and managers.

(b) The state treasurer may solicit proposals from financial organizations to act as de-
positories and managers of the program. Financial organizations submitting proposals shall
describe the investment instrument which will be held in accounts. The state treasurer shall
select as program depositories and managers the financial organization, from among the
bidding financial organizations, that demonstrates the most advantageous combination, both
to potential program participants and this state, of the following factors:

(1) Financial stability and integrity of the financial organization;

(2) the safety of the investment instrument being offered;

(3) the ability of the investment instrument to track increasing costs of postsecondary
education;

(4) the ability of the financial organization to satisfy recordkeeping and reporting
requirements;

(5) the financial organization's plan for promoting the program and the investment the
organization is willing to make to promote the program;

(6) the fees, if any, proposed to be charged to persons for opening accounts;

(7) the minimum initial deposit and minimum contributions that the financial organi-
zation will require;

(8) the ability of the financial organization to accept electronic withdrawals, including
payroll deduction plans; and

(9) other benefits to the state or its residents included in the proposal, including fees
payable to the state to cover expenses of operation of the program.

(c) The state treasurer may enter into a contract with a financial organization. Such
financial organization management shall provide only one type of investment instrument.

(d) The state treasurer may select more than one financial organization and investment
instrument for the program when the federal internal revenue service has provided guidance
that giving a contributor the choice of two or more investment instruments under a state
program will not cause the program to fail to qualify for favorable tax treatment under
section 529 of the federal internal revenue code of 1986, as amended.

(e) A management contract shall include, at a minimum, terms requiring the financial
organization to:

(1) Take any action required to keep the program in compliance with requirements of
sections 11 to 19, and amendments thereto, and any actions not contrary to its contract to
manage the program to qualify as a ``qualified state tuition plan'' as defined in section 529
of the federal internal revenue code of 1986, as amended;

(2) keep adequate records of each account, keep each account segregated from each
other account and provide the state treasurer with the information necessary to prepare the
statements required by section 17, and amendments thereto;

3) compile and total information contained in statements required to be prepared under
section 17, and amendments thereto, and provide such compilations to the state treasurer;

(4) if there is more than one program manager, provide the state treasurer with such
information as is necessary to determine compliance with section 17, and amendments
thereto;

(5) provide the state treasurer with access to the books and records of the program
manager to the extent needed to determine compliance with the contract;

(6) hold all accounts for the benefit of the account owner or owners;

(7) be audited at least annually by a firm of certified public accountants selected by the
program manager and provide the results of such audit to the state treasurer;

(8) provide the state treasurer with copies of all regulatory filings and reports made by
the financial organization during the term of the management contract or while the financial
organization is holding any accounts, other than confidential filings or reports that will not
become part of the program. The program manager shall make available for review by the
state treasurer the results of any periodic examination of such manager by any state or federal
banking, insurance or securities commission, except to the extent that such report or reports
may not be disclosed under law; and

(9) ensure that any description of the program, whether in writing or through the use
of any media, is consistent with the marketing plan developed pursuant to the provisions of
sections 11 to 19, and amendments thereto.

(f) The state treasurer may provide that an audit shall be conducted of the operations
and financial position of the program depository and manager at any time if the state trea-
surer has any reason to be concerned about the financial position, the recordkeeping prac-
tices or the status of accounts of such program depository and manager.

(g) During the term of any contract with a program manager, the state treasurer shall
conduct an examination of such manager and the manager's handling of accounts. Such
examination shall be conducted at least biennially if such manager is not otherwise subject
to periodic examination by the state bank commissioner, the federal deposit insurance cor-
poration or other similar entity.

(h) (1) If selection of a financial organization as a program manager or depository is
not renewed, after the end of the financial organization's term:

(A) Accounts previously established and held in investment instruments at such financial
organization may be terminated;

(B) additional contributions may be made to such accounts;

(C) no new accounts may be placed with such financial organization; and

(D) existing accounts held by such depository shall remain subject to all oversight and
reporting requirements established by the state treasurer.

(2) If the state treasurer terminates a financial organization as a program manager or
depository, the state treasurer shall take custody of accounts held by such financial organi-
zation and shall seek to promptly transfer such accounts to another financial organization
that is selected as a program manager or depository and into investment instruments as
similar to the original instruments as possible.

(i) The state treasurer may enter into such contracts as it deems necessary and proper
for the implementation of the program.

New Sec. 17. (a) Family postsecondary education savings accounts established pursuant
to the provisions of sections 11 to 19, and amendments thereto shall be governed by the
provisions of this section.

(b) A family postsecondary education savings account may be opened by any person or
persons who desire to save money for the payment of the qualified higher education ex-
penses of the designated beneficiary. Such persons shall be considered the account owner.

(1) An application for such account shall be in the form prescribed by the state treasurer
and contain the following:

(A) The name, address and social security number or employer identification number
of the account owner or owners;

(B) the designation of a designated beneficiary;

(C) the name, address and social security number of the designated beneficiary;

(D) the certification relating to no excess contributions; and

(E) such other information as the state treasurer may require.

(2) The state treasurer shall establish a nominal nonrefundable application fee for such
application.

(c) Only the account owner or owners may make contributions to the account after the
account is opened.

(d) Contributions to accounts may be made only in cash.

(e) An account owner may withdraw all or part of the balance from an account on sixty-
days notice or such shorter period as may be authorized under rules and regulations gov-
erning the program. Such rules and regulations shall include provisions that will generally
enable the determination as to whether a withdrawal is a nonqualified withdrawal or a
qualified withdrawal. Such rules and regulations may require one or more of the following:

(1) An account owner seeking to make a qualified withdrawal must provide certification
of qualified higher education expenses in a form and manner and pursuant to the method
consistent with the requirements of sections 11 to 19, and amendments thereto; and

(2) withdrawals not meeting the requirements of sections 11 to 19, and amendments
thereto shall be treated as nonqualified withdrawals by the program manager and if such
withdrawals are subsequently deemed qualified withdrawals, the account owner must seek
any refund of penalties directly from the program.

(f) (1) An account owner may change the designated beneficiary of an account to an
individual who is a member of the family of the prior designated beneficiary in accordance
with procedures established pursuant to the provisions of sections 11 to 19, and amendments
thereto.

(2) An account owner may transfer all or a portion of an account to another family
postsecondary education savings account, the designated beneficiary of which is a member
of the family as defined in section 529 of the federal internal revenue code of 1986, as
amended.

(3) Changes in designated beneficiaries and transfers under this subsection shall not be
permitted to the extent that they would constitute excess contributions or unauthorized
investment choices.

(g) In the case of any nonqualified withdrawal from an account an amount equal to 15%
of the portion of the withdrawal constituting income as determined in accordance with the
principles of section 529 of the federal internal revenue code of 1986, as amended, plus an
amount equal to the amount of interest earned on such portion shall be withheld as a penalty
and paid to the Kansas postsecondary education savings program.

(h) The penalty prescribed in subsection (g) may be increased if the state treasurer
determines that the amount of such penalty must be increased to constitute a greater than
de minimis penalty for purposes of qualifying the program as a qualified state tuition pro-
gram as defined in section 529 of the federal internal revenue code of 1986, as amended.

(i) If an account owner makes a nonqualified withdrawal and no penalty amount is
withheld pursuant to subsection (g) or the amount withheld was less than the amount re-
quired to be withheld under such subsection for nonqualified withdrawals, the account
owner shall pay the unpaid portion of the penalty to the program at the same time that the
account owner files the earlier of the account owner's state or federal income tax return for
the taxable year of the withdrawal or if such account owner does not file such return, the
due date for such returns but in any event on or before the due date for such return taking
into account any authorized extensions.

(j) The program shall provide separate accounting for each designated beneficiary.

(k) No account owner or designated beneficiary of any account shall be permitted to
direct the investment of any contributions to an account or the earnings thereon.

(l) Neither an account owner nor a designated beneficiary may use an interest in an
account as security for a loan. Any pledge of an interest in an account shall be of no force
and effect.

(m) (1) The state treasurer shall adopt rules and regulations to prevent contributions on
behalf of a designated beneficiary in excess of an amount equal to the average amount of
the qualified higher education expenses that would be incurred for five years of study at
institutions of postsecondary education located in the midwest states. Such amount shall be
determined annually by the state treasurer.

(2) Such rules and regulations shall include requirements that any excess balance with
respect to a designated beneficiary be promptly withdrawn in a nonqualified withdrawal or
transferred to another account.

(n) (1) If there is any distribution from an account to any individual or for the benefit
of any individual during a calendar year, such distribution shall be reported to the federal
internal revenue service and the account owner or owners, the designated beneficiary, or
the distributee to the extent required by federal law or regulation.

(2) Statements shall be provided to each account owner at least once each year within
60 days after the end of the twelve-month period to which they relate. The statement shall
identify the contributions made during a preceding twelve-month period, the total contri-
butions made to the account through the end of the period, the value of the account at the
end of such period, distributions made during such period and any other information that
the state treasurer shall require to be reported to the account owner.

(3) Statements and information relating to accounts shall be prepared and filed to the
extent required by federal and state tax law.

(o) (1) A local government or organization described in section 501(c) (3) of the federal
internal revenue code of 1986, as amended, may open and become the account owner of
an account to fund scholarships for persons whose identity will be determined upon
disbursement.

(2) In the case of any account opened pursuant to provision (1) of this subsection, the
requirement set forth in subsection (b) that a designated beneficiary be designated when
an account is opened shall not apply and each individual who receives an interest in such
account as a scholarship shall be treated as a designated beneficiary with respect to such
interest.

(p) An annual fee may be imposed upon the account owner or owners for the mainte-
nance of the account.

(q) An account must be opened before the designated beneficiary attains 25 years of
age and at least two calendar years before a qualified withdrawal can be made. Qualified
withdrawals must be completed by the time the designated beneficiary attains 30 years of
age or within 10 years after the initial qualified withdrawal is made, whichever occurs first.
The state treasurer may adopt rules and regulations providing for exceptions to the foregoing
requirements for such extenuating circumstances as the state treasurer deems necessary and
appropriate.

(r) An account owner or designated beneficiary of a Kansas postsecondary education
savings account may be a resident of any state but must be a resident of the United States
of America.

(s) The program shall disclose the following information in writing to each account
owner and prospective account owner of a family postsecondary education savings account:

(1) The terms and conditions for purchasing a family postsecondary education savings
account;

(2) any restrictions on the substitution of beneficiaries;

(3) the person or entity entitled to terminate the savings agreement;

(4) the period of time during which a beneficiary may receive benefits under the savings
agreement;

(5) the terms and conditions under which money may be wholly or partially withdrawn
from the program, including, but not limited to, any reasonable charges and fees that may
be imposed for withdrawal;

(6) the probable tax consequences associated with contributions to and distributions
from accounts; and

(7) all other rights and obligations pursuant to savings agreements, and any other terms,
conditions and provisions deemed necessary and appropriate by the state treasurer.

(t) Nothing in sections 10 to 19, and amendments thereto, or in any savings agreement
entered into pursuant to sections 11 to 19, and amendments thereto, shall be construed as
a guarantee by the state of Kansas or any institution of postsecondary education that a
beneficiary will be admitted to the institution of postsecondary education or, upon admission
to any institution of postsecondary education, will be permitted to continue to attend or will
receive a degree from such institution of postsecondary education.

New Sec. 18. (a) Nothing in sections 11 to 19, and amendments thereto, shall be con-
strued to:

(1) Give any designated beneficiary any rights or legal interest with respect to an account
unless the designated beneficiary is the account owner;

(2) guarantee that a designated beneficiary will be admitted to an institution of postse-
condary education;

(3) create state residency for an individual merely because the individual is a designated
beneficiary; or

(4) guarantee that amounts saved pursuant to the program will be sufficient to cover
the qualified higher education expenses of a designated beneficiary.

(b) (1) Nothing in sections 11 to 19, and amendments thereto, shall create or be con-
strued to create any obligation of the state treasurer, the state or any agency or instrumen-
tality of the state to guarantee for the benefit of any account owner or designated beneficiary
with respect to:

(A) The rate of interest or other return on any account; and

(B) the payment of interest or other return on any account.

(2) The state treasurer by rules and regulations shall provide that every contract, appli-
cation, deposit slip or other similar document that may be used in connection with a con-
tribution to an account clearly indicate that the account is not insured by the state and
neither the principal deposited nor the investment return is guaranteed by the state.

New Sec. 19. (a) The Kansas postsecondary education savings program trust fund is
hereby established in the state treasury. Such savings trust fund shall consist of moneys
deposited by depositors in accordance with this act, moneys acquired from governmental
and private sources and state general fund appropriations, if any. All interest derived from
the deposit and investment of moneys in such savings trust fund shall be credited to the
fund. At the end of any fiscal year, all unexpended and unencumbered moneys in such
savings trust fund shall remain therein and not be credited or transferred to the state general
fund or to any other fund.

(b) The state treasurer shall credit all moneys received in connection with the Kansas
postsecondary education savings program to the Kansas postsecondary education savings
program trust fund.

(c) All expenses incurred by the treasurer in developing and administering the postse-
condary education savings program shall be payable from the Kansas postsecondary edu-
cation savings program trust fund.

Sec. 20. K.S.A. 1998 Supp. 79-32,117 is hereby amended to read as follows: 79-32,117.
(a) The Kansas adjusted gross income of an individual means such individual's federal ad-
justed gross income for the taxable year, with the modifications specified in this section.

(b) There shall be added to federal adjusted gross income:

(i) Interest income less any related expenses directly incurred in the purchase of state
or political subdivision obligations, to the extent that the same is not included in federal
adjusted gross income, on obligations of any state or political subdivision thereof, but to the
extent that interest income on obligations of this state or a political subdivision thereof issued
prior to January 1, 1988, is specifically exempt from income tax under the laws of this state
authorizing the issuance of such obligations, it shall be excluded from computation of Kansas
adjusted gross income whether or not included in federal adjusted gross income. Interest
income on obligations of this state or a political subdivision thereof issued after December
31, 1987, shall be excluded from computation of Kansas adjusted gross income whether or
not included in federal adjusted gross income.

(ii) Taxes on or measured by income or fees or payments in lieu of income taxes imposed
by this state or any other taxing jurisdiction to the extent deductible in determining federal
adjusted gross income and not credited against federal income tax. This paragraph shall not
apply to taxes imposed under the provisions of K.S.A. 79-1107 or 79-1108, and amendments
thereto, for privilege tax year 1995, and all such years thereafter.

(iii) The federal net operating loss deduction.

(iv) Federal income tax refunds received by the taxpayer if the deduction of the taxes
being refunded resulted in a tax benefit for Kansas income tax purposes during a prior
taxable year. Such refunds shall be included in income in the year actually received regard-
less of the method of accounting used by the taxpayer. For purposes hereof, a tax benefit
shall be deemed to have resulted if the amount of the tax had been deducted in determining
income subject to a Kansas income tax for a prior year regardless of the rate of taxation
applied in such prior year to the Kansas taxable income, but only that portion of the refund
shall be included as bears the same proportion to the total refund received as the federal
taxes deducted in the year to which such refund is attributable bears to the total federal
income taxes paid for such year. For purposes of the foregoing sentence, federal taxes shall
be considered to have been deducted only to the extent such deduction does not reduce
Kansas taxable income below zero.

(v) The amount of any depreciation deduction or business expense deduction claimed
on the taxpayer's federal income tax return for any capital expenditure in making any build-
ing or facility accessible to the handicapped, for which expenditure the taxpayer claimed
the credit allowed by K.S.A. 79-32,177, and amendments thereto.

(vi) Any amount of designated employee contributions picked up by an employer pur-
suant to K.S.A. 12-5005, 20-2603, 74-4919 and 74-4965, and amendments to such sections.

(vii) The amount of any charitable contribution made to the extent the same is claimed
as the basis for the credit allowed pursuant to K.S.A. 79-32,196, and amendments thereto.

(viii) The amount of any costs incurred for improvements to a swine facility, claimed
for deduction in determining federal adjusted gross income, to the extent the same is claimed
as the basis for any credit allowed pursuant to K.S.A. 1998 Supp. 79-32,204 and amendments
thereto.

(ix) The amount of any ad valorem taxes and assessments paid and the amount of any
costs incurred for habitat management or construction and maintenance of improvements
on real property, claimed for deduction in determining federal adjusted gross income, to
the extent the same is claimed as the basis for any credit allowed pursuant to K.S.A. 79-
32,203 and amendments thereto.

(c) There shall be subtracted from federal adjusted gross income:

(i) Interest or dividend income on obligations or securities of any authority, commission
or instrumentality of the United States and its possessions less any related expenses directly
incurred in the purchase of such obligations or securities, to the extent included in federal
adjusted gross income but exempt from state income taxes under the laws of the United
States.

(ii) Any amounts received which are included in federal adjusted gross income but which
are specifically exempt from Kansas income taxation under the laws of the state of Kansas.

(iii) The portion of any gain or loss from the sale or other disposition of property having
a higher adjusted basis for Kansas income tax purposes than for federal income tax purposes
on the date such property was sold or disposed of in a transaction in which gain or loss was
recognized for purposes of federal income tax that does not exceed such difference in basis,
but if a gain is considered a long-term capital gain for federal income tax purposes, the
modification shall be limited to that portion of such gain which is included in federal adjusted
gross income.

(iv) The amount necessary to prevent the taxation under this act of any annuity or other
amount of income or gain which was properly included in income or gain and was taxed
under the laws of this state for a taxable year prior to the effective date of this act, as
amended, to the taxpayer, or to a decedent by reason of whose death the taxpayer acquired
the right to receive the income or gain, or to a trust or estate from which the taxpayer
received the income or gain.

(v) The amount of any refund or credit for overpayment of taxes on or measured by
income or fees or payments in lieu of income taxes imposed by this state, or any taxing
jurisdiction, to the extent included in gross income for federal income tax purposes.

(vi) Accumulation distributions received by a taxpayer as a beneficiary of a trust to the
extent that the same are included in federal adjusted gross income.

(vii) Amounts received as annuities under the federal civil service retirement system
from the civil service retirement and disability fund and other amounts received as retire-
ment benefits in whatever form which were earned for being employed by the federal
government or for service in the armed forces of the United States.

(viii) Amounts received by retired railroad employees as a supplemental annuity under
the provisions of 45 U.S.C. 228b (a) and 228c (a)(1) et seq.

(ix) Amounts received by retired employees of a city and by retired employees of any
board of such city as retirement allowances pursuant to K.S.A. 13-14,106, and amendments
thereto, or pursuant to any charter ordinance exempting a city from the provisions of K.S.A.
13-14,106, and amendments thereto.

(x) For taxable years beginning after December 31, 1976, the amount of the federal
tentative jobs tax credit disallowance under the provisions of 26 U.S.C. 280 C. For taxable
years ending after December 31, 1978, the amount of the targeted jobs tax credit and work
incentive credit disallowances under 26 U.S.C. 280 C.

(xi) For taxable years beginning after December 31, 1986, dividend income on stock
issued by Kansas Venture Capital, Inc.

(xii) For taxable years beginning after December 31, 1989, amounts received by retired
employees of a board of public utilities as pension and retirement benefits pursuant to K.S.A.
13-1246, 13-1246a and 13-1249 and amendments thereto.

(xiii) For taxable years beginning after December 31, 1993, the amount of income
earned on contributions deposited to an individual development account under K.S.A. 79-
32,117h, and amendments thereto.

(xiv) For all taxable years commencing after December 31, 1996, that portion of any
income of a bank organized under the laws of this state or any other state, a national banking
association organized under the laws of the United States, an association organized under
the savings and loan code of this state or any other state, or a federal savings association
organized under the laws of the United States, for which an election as an S corporation
under subchapter S of the federal internal revenue code is in effect, which accrues to the
taxpayer who is a stockholder of such corporation and which is not distributed to the stock-
holders as dividends of the corporation.

(xv) For all taxable years beginning after December 31, 1999, amounts not exceeding
$2,000 for each designated beneficiary which are contributed to a family postsecondary
education savings account established under the Kansas postsecondary education savings
program for the purpose of paying the qualified higher education expenses of a designated
beneficiary at an institution of postsecondary education. The terms and phrases used in this
paragraph shall have the meaning respectively ascribed thereto by the provisions of section
14, and amendments thereto, and the provisions of such section are hereby incorporated by
reference for all purposes thereof.

(d) There shall be added to or subtracted from federal adjusted gross income the tax-
payer's share, as beneficiary of an estate or trust, of the Kansas fiduciary adjustment deter-
mined under K.S.A. 79-32,135, and amendments thereto.

(e) The amount of modifications required to be made under this section by a partner
which relates to items of income, gain, loss, deduction or credit of a partnership shall be
determined under K.S.A. 79-32,131, and amendments thereto, to the extent that such items
affect federal adjusted gross income of the partner.

New Sec. 21. (a) Without adoption of a resolution or ordinance so providing, the gov-
erning body of any taxing subdivision shall not approve any appropriation or budget, as the
case requires, which may be funded by revenue produced from property taxes, and which
provides for funding with such revenue in an amount exceeding that of the next preceding
year, except with regard to revenue produced and attributable to the taxation of: (1) New
improvements to real property;

(2) increased personal property valuation, other than increased valuation of oil and gas
leaseholds and mobile homes;

(3) property located within added jurisdictional territory; and

(4) property which has changed in use.

(b) The provisions of this section shall be applicable to all fiscal and budget years com-
mencing on and after the effective date of this act.

(c) The provisions of this section shall not apply to community colleges or unified school
districts.

(d) The provisions of this section shall not apply to revenue received from property tax
levied for the sole purpose of repayment of the principal of and interest upon bonded
indebtedness, temporary notes and no-fund warrants.

New Section 22. The governing body of any city is hereby authorized and empowered
to levy taxes in each year for the general fund and other city purposes.

Sec. 23. K.S.A. 79-1945 is hereby amended to read as follows: 79-1945. The board of
county commissioners of any county is hereby authorized and empowered to levy taxes in
each year ~~taxes~~ for the ~~several county purposes, on the assessed tangible valuation of the~~
~~respective counties, not to exceed the tax levy rates and amounts specified in the following~~
~~sections of this act~~ general fund and other county purposes. Revenues derived from property
taxes levied for mental health programs or for programs for people with disabilities, whether
deposited in special funds or in the general funds of the several counties, shall be expended
exclusively for such purposes.

Sec. 24. K.S.A. 79-1946 is hereby amended to read as follows: 79-1946. The board of
county commissioners of each of the several counties is hereby authorized to fix a rate of
levy annually ~~to meet and defray the~~ for current ~~general~~ expenses of the county and to pay
a portion of the principal and interest on bonds issued under the authority of K.S.A. 12-
1774, and amendments thereto, by any city located in such county~~, subject to limitations~~
~~prescribed according to the assessed tangible valuation or a total population as follows:~~

~~Less than $13,000,000 or having a population of less than 3,500~~	~~6.50 mills~~
~~$13,000,000 to $30,000,000~~	~~4.25 mills~~
~~Over $30,000,000 to $140,000,000~~	~~3.50 mills~~
~~Over $140,000,000~~	~~4.25 mills~~

~~Except that in any such county which adjoins a military reservation and which has an assessed~~
~~taxable tangible valuation of less than $100,000,000 such rate of levy may, except as here-~~
~~inafter provided, be increased not to exceed 11/2 mills. Before any county shall increase any~~
~~levy under the provisions of the foregoing proviso the board of county commissioners shall~~
~~publish a notice of its intention to make such increase in the levy. Such notice shall be~~
~~published once each week for two consecutive weeks in the official county newspaper and~~
~~if within 60 days next following the last publication of such notice a petition signed by~~
~~electors of the county equal in number to not less than 5% of the total electors of such~~
~~county is filed in the office of the county election officer requesting an election upon such~~
~~proposition, no such increased levy shall be made without such proposition having been~~
~~submitted to and approved by a majority of the electors of the county voting at an election~~
~~called and held thereon. All such elections shall be noticed, called and held in the manner~~
~~prescribed in K.S.A. 10-120, and amendments thereto~~.

Sec. 25. K.S.A. 79-1962 is hereby amended to read as follows: 79-1962. ~~(a)~~ The gov-
erning body of any township is hereby authorized and empowered to levy taxes in each year
for the general fund and other township purposes, except that levies of taxes for road and
noxious weed purposes shall only be levied on all taxable tangible property located outside
of incorporated cities. ~~but the governing body shall not fix a rate of levy in any one year on~~
~~each dollar of assessed tangible valuation of such township in excess of the following-named~~
~~rates:~~

~~Ambulance service: As authorized by K.S.A. 80-1425~~	~~3 mills~~
~~General fund~~	~~.50 mill~~
~~Judgments~~	~~1.00 mill~~
~~Establishing and maintenance of free library and reading room~~	~~1.00 mill~~

~~Such one-mill levy is subject to increase as hereinafter provided.~~

~~Free band concerts~~	~~.25 mill~~
~~Free band concerts when authorized by an election~~	~~.50 mill~~
~~To acquire land for a cemetery or park~~	~~1.00 mill~~
~~Maintenance of a cemetery or park~~	~~1.00 mill~~
~~To acquire a site and build a cemetery chapel~~	~~2.00 mills~~
~~Fire protection, joint with cities or townships~~	~~1.00 mill~~
~~Extermination of prairie dogs~~	~~1.00 mill~~
~~Cemeteries: As authorized by K.S.A. 12-1403~~	~~1.00 mill~~
~~Cemeteries: As authorized by K.S.A. 12-1405~~	~~1.00 mill~~
~~Cemeteries: As authorized by K.S.A. 80-932~~	~~.10 mill~~
~~Fire department: As authorized by K.S.A. 80-1903~~	~~2.00 mills~~
~~Townships in counties between 150,000 and 250,000~~	~~4.00 mills~~
~~Fire department: As authorized by K.S.A. 80-1916~~	~~3.00 mills~~
~~Fire department: As authorized by K.S.A. 80-1921~~	~~3.00 mills~~
~~Fire department: As authorized by K.S.A. 80-1537~~	~~3.00 mills~~

~~Garbage and trash fund: As authorized by K.S.A. 80-2201:~~

~~First year of levy~~	~~1.00 mill~~
~~Second year and thereafter~~	~~.50 mill~~
~~Garbage and trash disposal: As authorized by K.S.A. 80-2204~~	~~.50 mill~~
~~Halls and buildings: As authorized by K.S.A. 80-115~~	~~2.00 mills~~
~~Noxious weeds: As authorized by K.S.A. 2-1318~~	~~1.00 mill~~
~~Deficiency levy for chemicals~~	~~.50 mill~~
~~Parks and cemeteries: Maintenance as authorized by K.S.A. 80-903~~	~~2.00 mills~~
Police protection by sheriff's deputies: As authorized by K.S.A. 19-807d	~~1.00 mill~~
~~Roads: As authorized by 68-518c~~	~~5.00 mills~~
~~Townships in counties between 175,000 and 275,000~~	~~7.00 mills~~

~~Such rates are not intended to, and shall not be construed to apply to any township not~~
~~specifically authorized by law to make such levy.~~

~~(b) The townships of Garfield and Pierceville in Finney county, Kansas, are hereby~~
~~authorized to levy an annual tax upon all taxable tangible property in the respective town-~~
~~ships of not to exceed three mills for the purpose of paying for fire protection.~~

~~(c) The levy for establishing and maintaining a free library and reading room may be~~
~~increased from one mill to not more than 2.50 mills. Before any township increases this levy~~
~~the township board shall publish a notice of its intention to make such increase. Such notice~~
~~shall be published once each week for two consecutive weeks in the official county news-~~
~~paper and if within 60 days following the last publication of such notice a petition signed~~
~~by electors of the township equal in number to not less than 5% of the total electors of such~~
~~township is filed in the office of the county election officer requesting an election upon such~~
~~proposition, no such increased levy shall be made without such proposition having been~~
~~submitted to and approved by a majority of the electors of the township voting at an election~~
~~called and held thereon. All such elections shall be noticed, called and held in the manner~~
~~prescribed in K.S.A. 10-120, and amendments thereto.~~

Sec. 26. K.S.A. 2-610 is hereby amended to read as follows: 2-610. (a) On or before
July 15 each year, the executive board of the county extension council shall file with the
county commissioners in the office of the county clerk:

(1) A list of current members of the county extension council and its executive board;

(2) a certification of election of officers as provided in subsection (c) of K.S.A. 2-611,
and amendments thereto;

(3) a certificate by the director of extension of Kansas state university of agriculture and
applied science that the county extension council is properly functioning and entitled to
receive the appropriations provided by law; and

(4) a proposed budget prepared in cooperation with the director of extension of Kansas
state university of agriculture and applied science for the ensuing calendar year.

(b) If the commission does not approve the proposed budget within 10 days after receipt
thereof, it shall return the budget to the board. Upon receipt of the returned budget, the
board shall consider amendments or modifications and may consult with the commission
concerning the budget. Within 10 days after receipt of the returned budget, the board shall
resubmit its proposed budget, with or without amendment or modification, to the commis-
sion. Within 10 days after resubmission of the proposed budget, the commission shall ap-
prove, or amend or modify and approve as amended or modified, such proposed budget.
The commission shall adopt the proposed budget as approved and shall make the same a
part of the regular county budget. The board of county commissioners shall make an ap-
propriation and certify to the county clerk the amount of tax necessary to be levied on all
tangible taxable property of the county sufficient to provide a program of county extension
work and to pay a portion of the principal and interest on bonds issued under the authority
of K.S.A. 12-1774, and amendments thereto, by cities located in the county~~, which levy shall~~
~~not exceed the limitation prescribed by K.S.A. 79-1947, and amendments thereto~~.

Sec. 27. K.S.A. 2-1318 is hereby amended to read as follows: 2-1318. The county weed
supervisor of each county is hereby directed and it shall be the duty of the county weed
supervisor to ascertain each year the approximate amount of land and highways infested
with each kind of noxious weeds and its location in the county, and transmit such information
tabulated by cities and townships not later than June 1 of each year, to the secretary of the
state board of agriculture, board of county commissioners, and to the governing body of
each city and township in the district pertaining to such noxious weed infestation in their
respective jurisdiction. On the basis of such information the tax levying body of each county,
township or incorporated city shall make a tax levy each year for the purpose of paying their
part of the cost of control and eradication thereof as provided in this act and, in the case of
cities and counties, to pay a portion of the principal and interest on bonds issued under the
authority of K.S.A. 12-1774, and amendments thereto, by cities located in the county. Each
county, city, and township, separately, shall make a levy each year ~~in addition to all other~~
~~levies now authorized by law, in such amount as is deemed to be necessary but not to exceed~~
~~the limitation prescribed by K.S.A. 79-1947, 79-1948, 79-1949, 79-1950, 79-1951, 79-1952,~~
~~79-1953 and 79-1962 and amendments thereto, in any one year~~ for such purpose. Any city
may budget expenditures for weed control within its general operating fund in lieu of levying
a special tax therefor or maintaining a separate noxious weed eradication fund. Moneys
collected from such levy, except for an amount to pay a portion of the principal and interest
on bonds issued under the authority of K.S.A. 12-1774, and amendments thereto, by cities
located in the county, shall be set apart as a noxious weed eradication fund and warrants
duly verified by the county or city supervisor if such be employed or if no supervisor be
employed, then by county, township or city clerk, as the case may be, may be drawn against
this fund for all items of expense incident to control of noxious weeds in such district
respectively. Any moneys remaining in the noxious weed eradication fund at the end of any
year for which a levy is made under this section may be transferred to the noxious weed
capital outlay fund for making of capital expenditures incident to the control of noxious
weeds. ~~If moneys collected from such levy in the preceding year were insufficient to pur-~~
~~chase chemicals or chemical materials needed for the purposes authorized in K.S.A. 2-1319~~
~~or 2-1322, and amendments thereto, the tax levying body may levy an additional tax of not~~
~~to exceed the limitation prescribed by K.S.A. 79-1947, 79-1948, 79-1949, 79-1950, 79-1951,~~
~~79-1952, 79-1953 and 79-1962 and amendments thereto, but the moneys collected from~~
~~such levy shall not be used for any purpose other than the purchase of such chemicals or~~
~~chemical materials.~~

~~Any tax levy authorized under the provisions of this section shall be in addition to all~~
~~other tax levies authorized by law.~~

Sec. 28. K.S.A. 2-2007 is hereby amended to read as follows: 2-2007. Each board of
county commissioners is authorized to create a ~~``soil-drifting fund''. They are authorized and~~
~~empowered to make~~ soil drifting fund and levy a tax against all taxable tangible property of
the county ~~at a rate not to exceed the limitation prescribed by K.S.A. 79-1947, to be collected~~
~~as other taxes, and when collected to be credited to the ``soil-drifting fund''~~ to pay for the
cost of work done, or hired to be done, by the board of county commissioners and to pay a
portion of the principal and interest on bonds issued under the authority of K.S.A. 12-1774,
and amendments thereto, by cities located in the county. ~~To pay persons employed by them~~
~~to do such work ordered to be done on any property the county shall issue its warrants upon~~
~~the ``soil-drifting fund,'' and such warrants shall be paid from that fund. This shall be re-~~
~~garded as a special purpose for incurring obligations and issuing and paying warrants and is~~
~~not controlled by any general statute relating thereto.~~

Sec. 29. K.S.A. 2-1319 is hereby amended to read as follows: 2-1319. (a) The cost of
controlling and eradicating noxious weeds on all lands or highways owned or supervised by
a state agency, department or commission shall be paid by the state agency, department or
commission supervising such lands or highways from funds appropriated to its use; on county
lands and county roads, on township lands and township roads, on city lands, streets and
alleys by the county, township or city in which such lands, roads, streets and alleys are
located, and from funds made available for that purpose; on drainage districts, irrigation
districts, cemetery associations and other political subdivisions of the state, the costs shall
be paid from their respective funds made available for the purpose. If the governing body
of any political subdivision owning or supervising lands infested with noxious weeds within
their jurisdiction fails to control such noxious weeds after 15 days' notice directing any such
body to do so, the board of county commissioners shall proceed to have proper control and
eradication methods used upon such lands, and shall notify the governing body of the po-
litical subdivision by certified mail of the costs of such operations, with a demand for pay-
ment. The governing body of the political subdivision shall pay such costs from its noxious
weed fund, or if no such fund is available, from its general fund or from any other funds
available for such purpose. Copy of the statement, together with proof of notification, shall
at the same time be filed with the county clerk, and if the amount is not paid within 30
days, such clerk shall spread the amount upon the tax roll of the subdivision, and such
amount shall become a lien against the entire territory located within the particular political
subdivision, and shall be collected as other taxes are collected.

(b) All moneys collected pursuant to this section shall be paid into the county noxious
weed eradication fund. ~~Tax levies made pursuant to this section shall be in addition to all~~
~~other levies authorized by law, and shall be in addition to any aggregate tax levy limits~~
~~prescribed by law.~~

(c) As used in this section, ``governing body'' means the board, body, or persons in which
the powers of a political subdivision as a body corporate are vested; and ``political subdivi-
sion'' means any agency or unit of the state authorized to levy taxes or empowered to cause
taxes to be levied.

(d) On all other lands the owner thereof shall pay the cost of control and eradication of
noxious weeds. Except as provided in K.S.A. 2-1333 and amendments thereto, chemical
materials for use on privately owned lands may be purchased from the board of county
commissioners at a price fixed by the board of county commissioners which shall be in an
amount equal to not less than 50% nor more than 75% of the total cost incurred by the
county in purchasing, storing and handling such chemical materials. However, once the tax
levying body of a county, city or township has authorized ~~the maximum~~ a tax levy ~~prescribed~~
~~by K.S.A. 2-1318, and amendments thereto~~ of 1.5 mills or more, the board of county com-
missioners may collect from the owner of privately owned lands an amount equal to 75%
but not more than 100% of the total cost incurred by the county in purchasing, storing and
handling of chemical materials used in the control and eradication of noxious weeds on such
privately owned lands. Whenever official methods of eradication, adopted by the state board
of agriculture, are not followed in applying the chemical materials so purchased, the board
of county commissioners may collect the remaining portion of the total cost thereof.

Sec. 30. K.S.A. 2-1322 is hereby amended to read as follows: 2-1322. (a) The board of
county commissioners, or the governing body of incorporated cities, cooperating with the
secretary of the state board of agriculture, shall purchase or provide for needed and nec-
essary equipment and necessary chemical material for the control and eradication of noxious
weeds. The board of county commissioners of any county or the governing body of any city
may use any equipment or materials purchased as provided for in this section, upon the
highways, streets and alleys, for the treatment and eradication of weeds which have not
been declared noxious by legislative action.

(b) Except as provided in K.S.A. 2-1333 and amendments thereto, the board of county
commissioners shall sell chemical material to the landowners in their jurisdiction at a price
fixed by the board of county commissioners which shall be in an amount equal to not less
than 50% nor more than 75% of the total cost incurred by the county in purchasing, storing
and handling such chemical materials used in the control and eradication of noxious weeds,
and may make such charge for the use of machines or other equipment and operators as
may be deemed by them sufficient to cover the actual cost of operation. However, once the
tax levying body of a county, city or township has authorized ~~the maximum~~ a tax levy ~~pre-~~
~~scribed by K.S.A. 2-1318, and amendments thereto~~ of 1.5 mills or more, the board of county
commissioners may collect from the landowners in their jurisdiction an amount equal to
75% but not more than 100% of the total cost incurred by the county in purchasing, storing
and handling of chemical materials used in the control and eradication of noxious weeds.

(c) Whenever official methods of eradication adopted by the state board of agriculture
are not used in applying the chemical material purchased, the board of county commission-
ers may collect the remaining portion of the total cost thereof from the landowner.

(d) The board of county commissioners, township boards, and the governing body of
cities shall keep a record showing purchases of material and equipment for control and
eradication of noxious weeds. The board of county commissioners and the governing body
of cities shall also keep a complete itemized record showing sales for cash or charge sales
of material and shall maintain a record of charges and receipts for use of equipment owned
by each county or city on public and private land. Such records shall be open to inspection
by citizens of Kansas at all times.

Sec. 31. K.S.A. 3-121 is hereby amended to read as follows: 3-121. Municipalities op-
erating airports jointly may pay the expenses of purchasing or acquiring such airports from
the general funds of such municipalities or may issue general obligation bonds, as authorized
by law, but no such bonds shall be issued for the purchase or acquisition of airports as
provided hereunder, by any municipality unless and until the question of issuing same shall
have been submitted to the qualified electors of ~~said~~ such municipality at any regular or
special election and a majority of those voting on the proposition in ~~said~~ such municipality
shall have voted in favor of the issuance of said bonds. In addition, any such governing body
may issue general obligation bonds of the county or city in an amount not to exceed ~~fifty~~
~~thousand dollars ($50,000)~~ $50,000 annually without an election, for the purpose of provid-
ing improvements on runways of any such airport. Any governing body proposing to issue
such bonds shall publish a resolution to that effect in a newspaper of general circulation
within the city or county, as applicable. Such resolution shall be published once each week
for three consecutive weeks. If, within ~~sixty (60)~~ 60 days following the final such publication,
a petition signed by not less than ~~five percent (5%)~~ 5% of the qualified electors of such city
or county, as applicable, is presented to the county election officer, no such bonds shall be
issued until approved by a majority of the qualified electors voting thereon at the next county
or city general election following the presentation of the petition.

In lieu of issuing such bonds for the purchase or acquisition of an airport, the governing
body of the municipality may levy an annual tax of not to exceed one mill on the dollar on
all the taxable tangible property in such municipality for not to exceed three years for the
purpose of creating a special fund to be used to pay the expenses of purchasing or acquiring
such airports or flying fields and to pay a portion of the principal and interest on bonds
issued under the authority of K.S.A. 12-1774, and amendments thereto, by cities located in
the county. Any such governing bodies are hereby further authorized to levy an annual tax
~~not to exceed the limitation prescribed by K.S.A. 79-1947, 79-1948, 79-1949, 79-1950, 79-~~
~~1951, 79-1952 and 79-1953, and amendments thereto, per year,~~ for the support, mainte-
nance and operation of such airports and to pay a portion of the principal and interest on
bonds issued under the authority of K.S.A. 12-1774, and amendments thereto, by cities
located in the county. Such support, maintenance and operation expenses shall be borne in
the proportion agreed upon by the municipalities in case such airports are not leased.

Sec. 32. K.S.A. 12-1617h is hereby amended to read as follows: 12-1617h. Cities are
hereby authorized to levy annually upon all the taxable tangible property within the city a
tax ~~not to exceed the limitation prescribed by K.S.A. 79-1948, 79-1949, 79-1950, 79-1951,~~
~~79-1952 and 79-1953, and amendments thereto,~~ for the purpose of creating a fund to be
used in securing or retaining industries or manufacturing institutions for such city or near
its environs and to pay a portion of the principal and interest on bonds issued by such city
under the authority of K.S.A. 12-1774, and amendments thereto. No such levy shall be made
until the governing body is instructed to do so by a majority of all the votes cast on this
proposition at an election held at any city or general election.

Such election shall be held as provided by law for bond elections. If any such city shall
not make such tax levy in any year, after the third year following the approval of such tax
levy by the voters, then it shall be necessary to resubmit the issue to the voters before any
such tax levy shall be imposed again. ~~The tax levy herein authorized shall be in addition to~~
~~all other levies authorized by law and shall not be subject to any of the limitations prescribed~~
~~by article 19 of chapter 79 of the Kansas Statutes Annotated or acts amendatory thereof~~
~~and supplemental thereto.~~

Nothing in this section shall be construed as restricting the authority of cities to utilize
the general fund or other revenue sources for the purpose of promoting or securing the
location or expansion of business and industry.

Sec. 33. K.S.A. 19-236 is hereby amended to read as follows: 19-236. That in addition
to the powers already given by law, the board of county commissioners of each county shall
have power at any meeting, in case of great loss or damage to life or property, to assist in
burying the dead, caring for the wounded, rendering temporary aid to the distressed, pre-
venting disease and pestilence, and cleaning up debris, and to issue no-fund warrants of the
county therefor not exceeding ~~one percent (1%)~~ 1% of the taxable property of the county,
and to levy a tax at the first tax levying period thereafter to pay such warrants. ~~All such tax~~
~~levies shall be in addition to all other levies authorized or limited by law and shall not be~~
~~subject to the aggregate tax levy prescribed in article 19 of chapter 79 of the Kansas Statutes~~
~~Annotated, and amendments thereto.~~ Such warrants shall be issued, registered, redeemed
and bear interest in the manner and in the form prescribed by K.S.A. 79-2940 and amend-
ments thereto, except they shall not bear the notation required by ~~said~~ such section and shall
be issued without the approval of the state board of tax appeals.

Sec. 34. K.S.A. 19-2803 is hereby amended to read as follows: 19-2803. The board of
county commissioners is authorized to levy a tax ~~not to exceed the limitation prescribed by~~
~~K.S.A. 79-1947, and amendments thereto,~~ for the creation of a fund to be used for the
purposes set forth in K.S.A. 19-2801 and amendments thereto and for the purpose of paying
a portion of the principal and interest on bonds issued under the authority of K.S.A. ~~1979~~
~~Supp.~~ 12-1774, and amendments thereto, by cities located in the county.

Sec. 35. K.S.A. 19-2803e is hereby amended to read as follows: 19-2803e. Whenever a
county lake and recreational grounds shall be established under the authority of this act,
the board of county commissioners of such county shall make an annual tax levy ~~in an amount~~
~~not to exceed the limitation prescribed by K.S.A. 1979 Supp. 79-1947,~~ for the creation of a
lake and recreational grounds fund to be used for the supervision, maintenance and im-
provement of ~~said~~ the lake and recreational grounds and to pay a portion of the principal
and interest on bonds issued under the authority of K.S.A. ~~1979 Supp.~~ 12-1774, and amend-
ments thereto, by cities located in the county. ~~Said tax levy shall be in addition to all the tax~~
~~levies authorized or limited by law and shall not be subject to or within any aggregate tax~~
~~levy limit prescribed by K.S.A. 1979 Supp. 79-1947, or acts amendatory thereof or supple-~~
~~mental thereto.~~

Sec. 36. K.S.A. 19-3105 is hereby amended to read as follows: 19-3105. The board of
county commissioners is hereby authorized to make an annual tax levy ~~not to exceed the~~
~~limitation prescribed by K.S.A. 1979 Supp. 79-1947~~ on all taxable tangible property of the
county for the purpose of providing a fund to be used for the maintenance and care of any
cemetery acquired under the provisions of this act and for the purpose of obtaining addi-
tional land for any such cemetery and to pay a portion of the principal and interest on bonds
issued under the authority of K.S.A. ~~1979 Supp.~~ 12-1774, and amendments thereto, by cities
located in the county. ~~The tax levy authorized by this section shall be in addition to all other~~
~~county tax levies authorized by law and shall not be subject to any aggregate tax levy limi-~~
~~tation prescribed by law.~~

Sec. 37. K.S.A. 19-3106 is hereby amended to read as follows: 19-3106. In any county
in this state in which there is located a cemetery or other burial place in which three or
more human bodies have been interred, and which cemetery or burial place has been
abandoned and not cared for, for a period of at least five years, the board of county com-
missioners of ~~said~~ the county is hereby authorized to provide for the care of such cemetery
or burial place. For the purpose of providing funds for such care and to pay a portion of
the principal and interest on bonds issued under the authority of K.S.A. ~~1979 Supp.~~ 12-
1774, and amendments thereto, by cities located in the county, the board of county com-
missioners is authorized to make an annual tax levy ~~not to exceed the limitation prescribed~~
~~by K.S.A. 1979 Supp. 79-1947,~~ on all taxable tangible property of ~~said~~ the county. ~~Said tax~~
~~levy shall be in addition to all other levies authorized or limited by law, and shall not be~~
~~subject to or within any aggregate tax levy limitation prescribed by article 19 of chapter 79~~
~~of the Kansas Statutes Annotated or acts amendatory thereof or supplementary thereto.~~

Sec. 38. K.S.A. 19-3305 is hereby amended to read as follows: 19-3305. For the purpose
of maintaining and operating such flood control works as shall be constructed by the United
States army corps of engineers or other agency of the United States government, when the
same shall have been completed and turned over to the county and to pay a portion of the
principal and interest on bonds issued under the authority of K.S.A. ~~1979 Supp.~~ 12-1774,
and amendments thereto, by cities located in the county, the board of county commissioners
of such county shall be empowered to make an annual tax levy upon all of the taxable tangible
property within ~~said~~ the county~~, in an amount not to exceed the limitation prescribed by~~
~~K.S.A. 1979 Supp. 79-1947, and such levy shall be in addition to all other levies authorized~~
~~or limited by law~~. It shall be the duty of the board of county commissioners and the county
engineer to keep all such flood control works in serviceable condition and to make such
repairs as ~~may~~, from time to time, may be necessary.

Sec. 39. K.S.A. 19-4004 is hereby amended to read as follows: 19-4004. In all counties
wherein the board or boards of county commissioners in the event of a combination of
counties has established a governing board, the respective board or boards of county com-
missioners may levy an annual tax upon all taxable tangible property in such county~~, which~~
~~tax shall not exceed the limitation prescribed by K.S.A. 1979 Supp. 79-1947,~~ for mental
health services and to pay a portion of the principal and interest on bonds issued under the
authority of K.S.A. ~~1979 Supp.~~ 12-1774, and amendments thereto, by cities located in the
county. The respective board or boards of county commissioners may also levy an additional
annual tax upon all taxable tangible property in such county~~, which tax shall not exceed the~~
~~limitation prescribed by K.S.A. 1979 Supp. 79-1947,~~ for mental retardation services and to
pay a portion of the principal and interest on bonds issued under the authority of K.S.A.
~~1979 Supp.~~ 12-1774, and amendments thereto, by cities located in the county. The additional
levy authorized by this section for mental retardation services shall not be made until a
notice of intent to make such levy has been published in a newspaper of general circulation
in the county or counties involved by the board or boards of county commissioners proposing
to make such levy, and such notice shall state that if a petition signed by ~~five percent (5%)~~
5% of the electors of the county shall file a protest petition within ~~sixty (60)~~ 60 days of the
date of such publication a proposition will be submitted at an election called for the purpose
in the county for approval of the levy; if such proposition is approved or if no sufficient
protest is made, then the board or boards of county commissioners shall levy such tax, but
if a sufficient protest is made and such proposition is not approved, the levy will not be
made. The proceeds thereof shall be placed in the hands of the appropriate governing board
to be administered as provided by this act.

In addition thereto, to provide for the purchase of or the construction of facilities for the
community mental health center, and/or facility for the mentally retarded, the board or
boards of county commissioners may, upon petition of the governing board, levy an annual
tax on all taxable tangible property in their county~~, which tax shall not exceed the limitation~~
~~prescribed by K.S.A. 1979 Supp. 79-1947,~~ and to issue and sell general obligation bonds of
such county, for the purpose of creating and providing a special fund to be used in acquiring
a site for, and the building, equipping, repairing, remodeling and furnishing of a community
mental health center, and/or facilities for the mentally retarded, or for any one or more of
such purposes. The additional levy authorized by this section shall not be made until a notice
of intent to make such levy has been published in a newspaper of general circulation in the
county or counties involved by the board or boards of county commissioners proposing to
make such levy, and such notice shall state that if a petition signed by ~~five percent (5%)~~ 5%
of the electors of the county shall file a protest petition within ~~sixty (60)~~ 60 days of the date
of such publication a proposition will be submitted at an election called for the purpose in
the county for approval of the levy; if such proposition is approved or if no sufficient protest
is made, then the board of county commissioners will make the levy of such tax, but if a
sufficient protest is made and such proposition is not approved, the levy will not be made.
The board of county commissioners shall proceed in the manner prescribed to be followed
in such notice. ~~Said~~ The tax levy may be made annually until sufficient funds have been
created for ~~said~~ the purpose or purposes, or if the county has issued and sold general
obligation bonds, the proceeds raised by the annual tax levy shall be used to retire the
general obligation bonds and ~~said~~ the tax levy shall continue until the general obligation
bonds have been retired. Such federal, state or private funds as may be available may be
accepted by the board of county commissioners to be placed in the fund for operation of
or construction of a community mental health center, and/or facility for the mentally re-
tarded, as the case may be. Title to the building or buildings of the community mental health
center, and/or facility for the mentally retarded, shall vest in the governing board which is
responsible for the maintenance and operation of the facilities if a combination of counties
has established the center, but, if only one county has established the mental health center
or facilities for the mentally retarded, title shall vest in the board of county commissioners
of such county. If the board of county commissioners has contracted with a nonprofit cor-
poration to provide mental health services under K.S.A. 19-4007 ~~or any~~, and amendments
thereto, the title to ~~said~~ the building or buildings shall vest in the board of county commis-
sioners and they may allow the nonprofit corporation to use the buildings without charge.

Sec. 40. K.S.A. 19-4011 is hereby amended to read as follows: 19-4011. The county
commissioners of a county entering into such an agreement with a community mental health
center is hereby authorized to levy an annual tax ~~in an amount not to exceed the limitation~~
~~prescribed by K.S.A. 1979 Supp. 79-1947,~~ upon all of the taxable tangible property in such
county for the purpose of providing revenue to pay for the mental health services contracted
for with the center and to pay a portion of the principal and interest on bonds issued under
the authority of K.S.A. ~~1979 Supp.~~ 12-1774, and amendments thereto, by cities located in
the county. The county commissioners of a county entering into such an agreement with a
community facility for the mentally retarded is hereby authorized to levy an annual tax in
~~an amount not to exceed the limitation prescribed by K.S.A. 1979 Supp. 79-1947,~~ upon all
of the taxable tangible property in such county for the purpose of providing revenue to pay
for the mental retardation services contracted for with the facility and to pay a portion of
the principal and interest on bonds issued under the authority of K.S.A. ~~1979 Supp.~~ 12-
1774, and amendments thereto, by cities located in the county. Upon receipt of such tax
moneys, the county commissioners shall pay the amount agreed upon to the governing body
of the center and/or community facilities for the mentally retarded and ~~said~~ the governing
body is authorized to receive and expend such moneys to provide community mental health
services.

Sec. 41. K.S.A. 19-4102 is hereby amended to read as follows: 19-4102. The board of
county commissioners of any such county may, by resolution, provide for the establishment
of a countywide economic development program and may provide for the financing thereof
from its general operating fund, or may levy a tax annually upon all the taxable tangible
property of the county ~~in an amount not exceeding the limitation prescribed by K.S.A. 79-~~
~~1947, and amendments thereto,~~ for the purpose of creating a fund therefor and to pay a
portion of the principal and interest on bonds issued under the authority of K.S.A. 12-1774,
and amendments thereto, by cities located in the county. ~~The tax levy herein authorized~~
~~shall be in addition to all other levies authorized by law.~~ In any year in which the board of
county commissioners of any county shall elect to levy any tax under the authority of this
section, such board shall cause a notice of its intention to make such levy to be published
in the official newspaper of the county, and if within 30 days next following the date of the
publication of such notice a petition, signed by electors equal in number to not less than
5% of the electors of the county, requesting an election thereon, shall be filed in the office
of county election officer, no such levy shall be made without such proposition having first
been submitted to and having been approved by a majority of the electors of the county
voting at an election called and held thereon. Any election held under provisions of this
section shall be subject to election laws applicable to elections for approval of bonds issued
by such county.

Sec. 42. K.S.A. 65-212 is hereby amended to read as follows: 65-212. The board of
county commissioners of any such county may, upon the establishment of such mental health
clinic, levy an annual tax ~~in an amount not exceeding the limitation prescribed by K.S.A.~~
~~79-1947, and amendments thereto,~~ upon all taxable tangible property in such county for the
operation of such mental health clinic, and in addition thereto to provide for the construction
of facilities for such mental health clinic and to pay a portion of the principal of and interest
on bonds issued under the authority of K.S.A. 12-1774, and amendments thereto, by cities
located in the county. In addition to the levy authorized for the operation of such mental
health clinic, the board of county commissioners may levy an annual tax ~~in an amount not~~
~~exceeding the limitation prescribed by K.S.A. 79-1947, and amendments thereto,~~ on all
taxable tangible property in their county and may issue and sell general obligation bonds of
such county, for the purpose of creating and providing a special fund to be used in acquiring
a site for, and the building, equipping, repairing, remodeling and furnishing of a mental
health clinic or for any one or more of such purposes. Such levy may also be used to pay a
portion of the principal of and interest on bonds issued under the authority of K.S.A. 12-
1774, and amendments thereto, by cities located in the county. Such additional tax levy may
be made annually until sufficient funds have been created for such purpose or purposes, or
if the county has issued and sold general obligation bonds, the proceeds raised by the annual
tax levy shall be used to retire the general obligation bonds and such tax levy shall continue
until the general obligation bonds have been retired. Such federal, state or private funds as
may be available may be accepted by the board of county commissioners to be placed in
the fund for operation of or construction of a mental health clinic as the case may be. Title
to the building or buildings of the mental health clinic shall vest in the board of county
commissioners and they may allow the mental health clinic which is subject to the jurisdic-
tion of the joint board of health pursuant to K.S.A. 65-211, and amendments thereto, to use
the building without charge. The proceeds thereof shall be placed in the hands of the
treasurer of the joint board of health, to be administered as provided by K.S.A. 65-206, and
amendments thereto. No levy shall be made under the provisions of this act until a resolution
authorizing the making of such levies is passed by the board of county commissioners and
published in three successive issues in a newspaper of general circulation within the county,
whereupon such levies may be made unless a petition in opposition to the same, signed by
electors equal in number to not less than 10% of the qualified electors of such county who
voted for the office of secretary of state in the last preceding election, is filed with the county
clerk of such county within 30 days following the last publication of such resolution.

In the event such petition is filed it shall be the duty of the board of county commissioners
to submit the question to the voters at an election called for such purpose or at the next
general election. None of the debt limitations prescribed by law for any such county shall
apply to any bonds issued under the authority conferred by this act. The provisions of this
act shall be supplemental to other existing health laws in the counties affected thereby, but
shall in no way abrogate or amend any such other existing health laws.

Sec. 43. K.S.A. 68-166 is hereby amended to read as follows: 68-166. The board of
county commissioners shall pay any expense incurred under the authority conferred by this
act from the general fund, road fund, bridge fund or road and bridge fund of the county.
If such board shall deem it necessary, in order to provide sufficient revenue for the purpose
of installing, maintaining and operating any such lighting system, it is hereby authorized to
levy an annual tax ~~in an amount not to exceed the limitation prescribed by K.S.A. 79-1947,~~
on all the taxable tangible property in such county for the purpose of providing revenue for
such purposes and to pay a portion of the principal and interest on bonds issued under the
authority of K.S.A. 12-1774, and amendments thereto, by cities located in the county. ~~Such~~
~~tax levy shall be in addition to all other tax levies authorized or limited by law and shall not~~
~~be subject to or within the aggregate tax levy limitation prescribed by K.S.A. 79-1947 or~~
~~acts amendatory thereof.~~ All moneys derived from such tax levy except an amount to pay a
portion of the principal and interest on bonds issued under the authority of K.S.A. 12-1774,
and amendments thereto, by cities located in the county shall be placed in a special fund
by the county treasurer and shall ~~only~~ be used only for the purposes for which the tax was
levied.

Sec. 44. K.S.A. 68-582 is hereby amended to read as follows: 68-582. The board of any
county and the governing body of any city may by resolution propose the designation as a
secondary arterial highway any existing street (or a portion thereof), or a proposed new
street within a city in such county which is or would be a connecting link between county
roads and may enter into an agreement providing for the cooperative financing of the con-
struction, reconstruction, maintenance and repair of such proposed secondary arterial high-
way under such terms as the board and governing body shall agree upon. Such designation
and agreement shall set out the secondary arterial highway designation and its location, a
general description of the proposed improvement and an estimate of the total cost thereof
to each such city and county exclusive of any grants from any other public agency, and shall
become effective upon publication by the city in its official newspaper and by the county in
its official newspaper. Such agreement may be part of an agreement between the secretary
of transportation, the county and the city. Any such agreement shall provide for sharing the
costs of engineering and construction or other improvement of the designated secondary
arterial highway, and for future maintenance by the city or by the county, upon such terms
as the board and governing body may agree. The board and governing body of any county
and city which have entered into such agreements may use any public funds available to
such county or city for the construction, improvement or maintenance of such secondary
arterial highway in like manner as if it were a normal county road or a city street, may each
issue bonds as provided in K.S.A. 68-584, and amendments thereto and may each levy an
annual tax upon the assessed tangible valuation in such county or city ~~not to exceed the~~
~~limitations prescribed by K.S.A. 79-1947, 79-1948, 79-1949, 79-1950, 79-1951, 79-1952 and~~
~~79-1953~~ for such purpose and to pay a portion of the principal and interest on bonds issued
under the authority of K.S.A. 12-1774, and amendments thereto, by cities located in the
county.

Sec. 45. K.S.A. 73-407 is hereby amended to read as follows: 73-407. The management
and control of a county building shall be vested in a board of three trustees to be appointed
by the county commissioners, and if a city building, shall be appointed by the mayor of ~~said~~
the city. Such trustees shall be residents of the county or city wherein the building is located
except that at least two of ~~said~~ the trustees shall have seen service in the army, navy or
marine corps of the United States in time of war. One trustee shall be appointed for one
year, one trustee for two years and one trustee for three years, and thereafter each trustee
shall be appointed for three years. ~~Said trustee~~ Trustees shall serve without compensation
and shall make annual reports and recommendations to the proper county and the city
officials.

The expense of maintenance of ~~said~~ the memorial shall be paid out of the general fund
of the county or city, or ~~in case the same shall not be sufficient, shall be paid~~ out of a special
fund ~~which shall be created, for which the counties~~. Counties or cities are authorized to
make a levy upon all taxable tangible property in the county or city ~~in an amount not~~
~~exceeding the limitation prescribed by K.S.A. 79-1947, 79-1948, 79-1949, 79-1950, 79-1951,~~
~~79-1952 and 79-1953~~ for such purpose and to pay a portion of the principal and interest on
bonds issued under the authority of K.S.A. 12-1774, and amendments thereto, by cities
located in the county~~; and in counties having a population of more than seventeen thousand~~
~~(17,000) and less than twenty-two thousand (22,000), which contain a first-class city, tax levy~~
~~shall be in addition to all other levies authorized or limited by law and shall not be subject~~
~~to nor within any aggregate levy prescribed by article 19 of chapter 79 of the Kansas Statutes~~
~~Annotated, and any acts amendatory thereof~~. The board of trustees shall have full authority
to lease all or any part of ~~said~~ the building for hire to any person or persons desiring to lease
the same for a term not to exceed one year at a time and fix the rate and terms upon which
the charge shall be made and collected therefor. The board of trustees of any such memorial
in any city of the second class located in a county with a population of not less than ~~twelve~~
~~thousand (12,000)~~ 12,000 and not more than ~~fifteen thousand (15,000)~~ 15,000 and having
an assessed tangible valuation of not less than ~~thirty-two million dollars ($32,000,000)~~
$32,000,000 and not more than ~~thirty-five million dollars ($35,000,000)~~ $35,000,000 is
hereby authorized to lease all or any part of ~~said~~ the memorial to the Kansas national guard
for a term of not to exceed ~~ten (10)~~ 10 years and to fix the rate and terms upon which the
charge shall be made and collected therefor. The board of trustees of any such memorial
in any city having a commission form of government, and a population of more than ~~one~~
~~hundred fifty thousand (150,000)~~ 150,000, shall have full authority to lease any suitable
portion or portions of ~~said~~ the building to any concessionaire desiring to lease the same, for
a term of not to exceed ~~ten (10)~~ 10 years, and to fix the rate and terms upon which the
charge shall be made and collected therefor.

Sec. 46. K.S.A. 76-326a is hereby amended to read as follows: 76-326a. The boards of
county commissioners of the several counties of this state are hereby authorized to contrib-
ute in the aid of work authorized by ~~section 1 of chapter 48 of the 1919 Kansas Session~~
~~Laws (now included by reference in K.S.A. 76-326)~~ K.S.A. 76-326, and amendments thereto,
under the ~~directions~~ direction of the state geologist~~, such amounts from the general revenue~~
~~fund of their counties as they may determine or from the proceeds of a special tax levy in~~
~~an amount not to exceed the limitation prescribed by K.S.A. 79-1947, which said~~. Such
boards are hereby authorized to make a tax levy for ~~said~~ such purpose and to pay a portion
of the principal and interest on bonds issued under the authority of K.S.A. 12-1774, and
amendments thereto, by cities located in the county ~~in addition to all other tax levies pro-~~
~~vided by law and outside any aggregate levy limit prescribed by article 19 of chapter 79 of~~
~~the Kansas Statutes Annotated. No such contribution shall be made by any county to said~~
~~work in any one year to an amount that will exceed one-tenth of one mill upon the dollar~~
~~of the assessed tangible valuation of such counties~~.

Sec. 47. K.S.A. 82a-308 is hereby amended to read as follows: 82a-308. Any expenses
incurred in removing such obstructions as are mentioned in K.S.A. 82a-307 and amendments
thereto, or damage to private property, shall be paid out of the general fund of the respective
counties but if it shall appear that the obstructions were caused by owners of adjoining
property, the expenses shall be charged to the adjoining property as a special tax to be levied
and collected as other special taxes and assessments. In the event that the general fund of
any county shall not be sufficient to bear the cost of the operations mentioned in this section,
including the maintenance of such streams or watercourses, then the board of county com-
missioners of such county may levy an annual tax ~~not to exceed the limitation prescribed by~~
~~K.S.A. 79-1947,~~ upon all property in ~~said~~ the county for the purpose of creating a fund
known as ``stream maintenance fund'' from which fund the costs and expenses of the op-
eration herein provided for shall be paid and for the purpose of paying a portion of the
principal and interest on bonds issued under the authority of K.S.A. 12-1774, and amend-
ments thereto, by cities located in the county.

Sec. 48. K.S.A. 12-1403 is hereby amended to read as follows: 12-1403. For the purpose
of providing a fund to obtain land for cemetery purposes, the township trustees shall have
authority to levy a tax ~~not exceeding the limitation prescribed by K.S.A. 79-1962, in any one~~
~~year~~ upon all of the taxable tangible property in such township~~, to be levied and collected~~
~~as other taxes for township purposes are levied and collected. The funds derived from such~~
~~tax shall not be applied to any purpose other than the object of the levy~~.

Sec. 49. K.S.A. 12-1405 is hereby amended to read as follows: 12-1405. All cities owning
and controlling municipal cemeteries, are hereby authorized to make an annual levy of a
tax upon all taxable tangible property in the city and townships, owning and controlling
municipal or township cemeteries are hereby authorized to make an annual levy of a tax
upon all taxable tangible property in the city or township to be expended in making per-
manent improvements in such cemeteries and upkeep of the same and, in the case of cities,
to pay a portion of the principal and interest on bonds issued by such city under the authority
of K.S.A. 12-1774, and amendments thereto. ~~The tax levies herein authorized for townships~~
~~shall not exceed the limitation prescribed by K.S.A. 79-1962 and shall be in addition to all~~
~~other tax levies authorized or limited by law and shall not be subject to or within any~~
~~aggregate tax levy limit prescribed by K.S.A. 79-1962 or any amendments thereto.~~

Sec. 50. K.S.A. 19-807d is hereby amended to read as follows: 19-807d. The township
board in any township which is located in a county in which is located a city having a
population in excess of ~~one hundred thousand (100,000)~~ 100,000 is hereby authorized to
contribute funds to the county for the purpose of providing sheriff's deputies in addition to
those otherwise provided, for the purpose of providing additional police protection within
such township and for the purpose of providing and maintaining motorized equipment and
radio equipment therefor. The township board shall have power to determine the amount
of such contribution and the conditions under which such contributions shall be made.

When the township board informs the sheriff that such board intends to make a contri-
bution pursuant to this section, the sheriff and the township board shall enter into an agree-
ment within ~~twenty (20)~~ 20 days thereafter, which agreement shall specify the additional
police protection to be provided and the funds to be contributed. Any and all such agree-
ments relating to contribution of funds shall be by and between the township board and the
sheriff with the approval of the board of county commissioners. For the purpose of providing
funds to make such contributions, the township board is ~~hereby~~ authorized ~~and empowered~~
to levy ~~annually a~~ an annual tax ~~not to exceed the limitation prescribed by K.S.A. 79-1962,~~
upon all taxable tangible property in such township ~~and such tax shall be in addition to all~~
~~other levies authorized or limited by law and shall not be subject to, or within the aggregate~~
~~tax levy limits prescribed by K.S.A. 79-1962 and acts amendatory thereto~~.

Sec. 51. K.S.A. 68-518c is hereby amended to read as follows: 68-518c. (a) The town-
ship board of any township located in a county not operating under the county road unit
system, is hereby authorized to make an annual tax levy~~, in addition to all other tax levies~~
~~now or otherwise authorized by law,~~ of not to exceed five mills for road purposes ~~in an~~
~~amount~~ which will be sufficient, when added to other revenues available for such purposes,
to finance the adopted budget of expenditures for road purposes. ~~Except as otherwise here-~~
~~inafter provided, the annual tax levy made under the authority conferred by this section~~
~~shall not exceed the limitation prescribed by K.S.A. 79-1962.~~

(b) The township board of any such township desiring to ~~levy an annual tax for road~~
~~purposes in an amount exceeding the limitation prescribed by K.S.A. 79-1962, but in an~~
~~amount not exceeding eight mills,~~ increase the authorized limit existing on the effective date
of this act may adopt a resolution authorizing such levy and shall publish the same once
each week for three consecutive weeks in a newspaper of general circulation in the township.
If within ~~thirty~~ 30 days after the date of the last publication of such resolution a petition,
signed by electors of the township equal in number to not less than ~~ten percent~~ 10% of the
qualified electors of the township who voted for the office of governor at the last general
election for such office, is filed in the office of the county election officer no such increased
levy shall be made without having been approved by a majority of the electors of the town-
ship voting at an election called and held thereon. All elections held under the provisions
of this section shall be called and held in the manner prescribed by K.S.A. 10-120, and
amendments thereto.

~~Such additional tax levy~~ (c) Taxes imposed under this section shall be levied on all the
taxable tangible property in the township outside of incorporated cities~~, and such tax levy~~
~~shall not be subject to or within any aggregate tax levy limit prescribed by K.S.A. 79-1962,~~
~~or acts amendatory thereof or supplemental thereto~~, and the moneys derived therefrom
shall be used for the construction, reconstruction, improvement, repair and maintenance of
township roads and culverts.

Sec. 52. K.S.A. 80-115 is hereby amended to read as follows: 80-115. The township
board of any township which has a township hall, or which uses part of a township water
department building or township fire department building as its township hall, is hereby
authorized and empowered to levy an annual tax ~~in an amount not to exceed the limitation~~
~~prescribed by K.S.A. 79-1962, and amendments thereto,~~ on the taxable tangible property in
such township, to provide a special fund for the purpose of acquiring, repairing, equipping
and maintaining such township hall~~, or to be used in purchasing and moving, or constructing~~
~~a building and acquiring a site for, and the furnishing and equipping of any such building,~~
~~or a part of any site or building in conjunction with a site or building for other township~~
~~uses. No levy shall exceed a rate, which multiplied by the total assessed tangible valuation~~
~~of the township will result in producing more than the amount prescribed by K.S.A. 79-~~
~~1962, and amendments thereto, in any one year. Any unexpended balance remaining in such~~
~~special fund at the end of any fiscal year of the township may be retained in such special~~
~~fund and be expended in future years for any of the purposes herein enumerated~~.

Sec. 53. K.S.A. 80-119 is hereby amended to read as follows: 80-119. Whenever no-
fund warrants are issued under the authority of this act the township board shall make a tax
levy or levies sufficient to pay such warrants and the interest thereon. Such warrants may
mature serially at such yearly dates as to be payable by not more than five ~~(5)~~ tax levies. ~~All~~
~~such tax levies shall be in addition to all other levies authorized or limited by law and shall~~
~~not be subject to the aggregate tax levy limitation prescribed in article 19 of chapter 79 of~~
~~the Kansas Statutes Annotated and amendments thereto.~~ Such warrants shall be issued,
registered, redeemed and bear interest in the manner and be in the form prescribed by
K.S.A. 79-2940, ~~or any~~ and amendments thereto, except they shall not bear the notation
required by ~~said~~ such section and may be issued without the approval of the state board of
tax appeals.

Sec. 54. K.S.A. 80-808 is hereby amended to read as follows: 80-808. The township
board of any township which maintains and operates a township library which is known as
a Carnegie library is hereby authorized and empowered to issue no-fund warrants in an
amount not exceeding ~~four thousand dollars ($4,000)~~ $4,000 for the purpose of providing
funds for the repair and reconstruction of the Carnegie library building of such township.
Whenever any township board shall issue warrants under the provisions of this section ~~said~~,
such board shall make a tax levy at the first tax levying period after such warrants are issued
sufficient to pay the same and the interest thereon~~: Provided, That~~. If the township board
~~shall deem~~ deems it advisable not to make all of such levy in any one year, then ~~said~~ such
township board may make an annual tax levy at not more than the next three ~~(3)~~ tax levying
periods occurring after the issuance of such warrants, the total of which levies shall be
sufficient to pay ~~said~~ such warrants and the interest thereon. The warrants shall be issued,
registered, redeemed and bear interest in the manner and be in the form prescribed by
K.S.A. 79-2940, and amendments thereto, except that such warrants shall not bear the no-
tation required by ~~said section~~ K.S.A. 79-2940, and amendments thereto, and may be issued
without the approval of the state board of tax appeals, and any surplus existing after the
issuance of ~~said~~ such warrants shall be handled in the manner prescribed by ~~said section~~
K.S.A. 79-2940, and amendments thereto. Such township board is hereby authorized and
empowered to expend all moneys raised by no-fund warrants issued under the provisions
of this section although such expenditures were not included in the budget for the year in
which such warrants were issued. ~~The tax levy herein authorized shall be in addition to all~~
~~other tax levies authorized or limited by law and shall not be subject to or within the~~
~~aggregate tax levy limit prescribed by K.S.A. 79-1962.~~

Sec. 55. K.S.A. 80-903 is hereby amended to read as follows: 80-903. Any township
issuing bonds under this act shall annually levy a tax sufficient to pay the interest thereon,
and after five ~~(5)~~ years an amount sufficient to create a sinking fund to pay the principal at
maturity; and any township purchasing or acquiring or acting as trustee for grounds for a
park or parks, or cemetery or cemeteries is empowered and authorized to annually levy and
collect a tax~~, not exceeding the limitation prescribed by K.S.A. 79-1962, in any one (1) year~~
to provide a fund for the purpose of meeting the annual expense of such grounds, and such
other improvements as the township board ~~may deem~~ deems necessary.

Sec. 56. K.S.A. 80-932 is hereby amended to read as follows: 80-932. The township
board of any township is hereby authorized and empowered to levy an annual tax ~~in an~~
~~amount not to exceed the limitation prescribed by K.S.A. 79-1962,~~ on all taxable tangible
property in such townships, including such property of cities of the third class, for the
purpose of providing funds to be used for the care and maintenance of cemeteries in such
townships for which no provision is made by law for the levying of taxes for such care and
maintenance~~, or said township board may expend a sum not to exceed fifty dollars ($50) per~~
~~year from the general fund of the township in lieu of said levy. The tax levy herein authorized~~
~~shall be in addition to all other tax levies authorized by law and shall not be subject to the~~
~~aggregate tax levy limit prescribed by K.S.A. 79-1962 or any amendments thereto~~.

Sec. 57. K.S.A. 80-1417 is hereby amended to read as follows: 80-1417. The governing
body of any city of the third class having a population of not to exceed ~~three hundred (300)~~
300, located within a township having a township hall and in a county with a population of
not less than ~~forty-five hundred (4,500)~~ 4,500 nor more than ~~fifty-five hundred (5,500)~~ 5,500
is hereby authorized and empowered to enter into a contract with the township board of
~~said~~ the township for the joint ownership, maintenance, repair, remodeling, and equipping
of ~~said~~ the township hall~~: Provided, That~~, but before such an agreement may be entered
into, a petition signed by at least ~~fifty percent (50%)~~ 50% of the residents of ~~said~~ such city
as determined by the total vote cast for secretary of state at the last preceding election, shall
be submitted to the governing body of ~~said~~ such city requesting that such a contract be
entered into. When the governing body determines that such petition is proper, ~~they~~ the
governing body shall then adopt a resolution authorizing the city to enter into such a con-
tract.

The township board, upon receipt of such resolution, shall meet and if ~~they determine~~
determined that a contract should be entered into, the board shall adopt a resolution au-
thorizing such contract. Thereafter, the governing body of the city and the township board
are authorized to enter into a contract, which contract shall provide that the township hall
shall be under the joint ownership of the city and township and shall be maintained, re-
modeled, equipped and kept in repair jointly by ~~said~~ such township and city. ~~Said~~ The
contract shall be approved by a majority of the governing body of the city and of the township
board.

After ~~said~~ the contract has been entered into, the township board is authorized and em-
powered to levy an annual tax ~~for the years 1951 and 1952 of not to exceed five (5) mills,~~
~~and thereafter, an annual tax~~ of not to exceed two ~~(2)~~ mills on the dollar on all of the taxable
tangible property of ~~said~~ such cities of the third class for the purpose of providing funds to
be used for the maintenance, equipping, remodeling and repair of ~~said~~ the township hall.
~~Said tax levies shall be in addition to all other tax levies authorized or limited by law and~~
~~shall not be subject to any aggregate tax levy limits prescribed by article 19 of chapter 79~~
~~of the General Statutes of 1949.~~

Sec. 58. K.S.A. 80-1503 is hereby amended to read as follows: 80-1503. (a) Townships
are hereby authorized and empowered to levy a special tax not to exceed one mill on all
tangible property in the township not including a corporate city in a sufficient amount to
join with a municipality or township for the purposes as provided in K.S.A. 80-1501, and
amendments thereto, or to pay the compensation agreed upon by contract under authority
of K.S.A. 80-1502, and amendments thereto.

(b) The township board, by adopting the appropriate resolution, may levy a tax of more
than one mill for the purposes authorized by subsection (a). Any resolution increasing the
amount of the tax currently levied by the township board and any subsequent increase
thereof shall be published once each week for two consecutive weeks in a paper of general
circulation within the township. The township board may make such levy unless, within 30
days following final publication of the resolution, a protest petition signed by 10% of the
qualified voters of the township is filed with the township clerk. If a sufficient petition is
filed, such additional tax shall not be levied until approved by a majority of the voters voting
at an election thereon. Such election shall be called and held in the manner provided by
the general bond law. If a levy is imposed pursuant to this subsection, no other levies for
the purposes authorized by subsection (a) shall be made on such property.

(c) Counties are hereby authorized and empowered to levy an annual tax ~~of not to~~
~~exceed 1/2 mill on the dollar~~ on all the taxable tangible property in such county for the
purposes as provided in K.S.A. 80-1501, and amendments thereto, or to pay the compen-
sation agreed upon by contract under authority of K.S.A. 80-1502, and amendments thereto,
and to pay a portion of the principal and interest on bonds issued under the authority of
K.S.A. 12-1774, and amendments thereto, by cities located in the county.

~~Such tax levy shall be in addition to all other tax levies authorized or limited by law and~~
~~shall not be subject to the aggregate tax levy limit prescribed by K.S.A. 79-1947, and amend-~~
~~ments thereto.~~

Sec. 59. K.S.A. 80-1509 is hereby amended to read as follows: 80-1509. The township
board shall annually ~~provide for the levying of a tax of not to exceed .50 mills~~ levy a tax
upon the tangible taxable property in ~~said~~ such benefit district and within the township
sufficient to pay the compensation agreed upon in the contract with the municipality. ~~Such~~
~~tax levy shall be in addition to all other tax levies authorized or limited by law and shall not~~
~~be subject to any of the limitations prescribed by K.S.A. 79-1962 or acts amendatory thereof~~
~~or supplemental thereto.~~

Sec. 60. K.S.A. 80-1537 is hereby amended to read as follows: 80-1537. Annual tax
levies may be made by such township ~~in an amount not to exceed the limitation prescribed~~
~~by K.S.A. 79-1962,~~ on all the taxable tangible property of the township, including such
property of the city which is a party to such agreement. ~~Such levy shall be in addition to all~~
~~other levies authorized by law and shall be outside the aggregate levy limitations provided~~
~~in K.S.A. 79-1962, and acts amendatory thereof or supplemental thereto.~~

Sec. 61. K.S.A. 80-1806 is hereby amended to read as follows: 80-1806. Any township
or townships of the urban class in the state of Kansas is hereby authorized and empowered
to make a tax levy in such amount as may be necessary in order to provide the necessary
funds for the payment of the township share of registration and election expenses. ~~Such tax~~
~~levy shall be in addition to all other tax levies authorized or limited by law and the provisions~~
~~of K.S.A. 79-1962 and 79-1962a, or any amendments thereto, shall not be applicable to such~~
~~tax levy.~~ All money raised by such tax levy shall be credited by the county treasurer to a
special fund and the county shall be reimbursed from such fund for the registration and
election expenses which it has paid on behalf of such township, but if there be an insufficient
amount in such fund to pay the cost chargeable to such township, the county shall be
reimbursed for the remainder from the township general fund. If the township does not
make the levy authorized by this act, then the county shall be reimbursed for registration
and election expenses paid on behalf of such township from the township general fund. No
money raised under the tax levy authorized by this act shall be withdrawn from the county
treasury by the township and if there be a balance existing therein after the payment of
registration and election expenses for any year, the same shall be held in the county treasury
to the credit of such township and used to pay registration and election expenses incurred
in subsequent years.

Sec. 62. K.S.A. 80-1903 is hereby amended to read as follows: 80-1903. The township
board of any such township shall have power to levy a tax ~~not exceeding the limitation~~
~~prescribed by K.S.A. 79-1962, and amendments thereto,~~ upon all taxable tangible property
within such township, for the purpose of paying the expense of providing rescue service and
equipping, operating and maintaining such fire department or contracting with another fire
department for the furnishing of rescue service or fire protection. ~~Such tax levy shall be in~~
~~addition to all other tax levies authorized or limited by law. In any county having a population~~
~~of more than 150,000 and less than 250,000 the township levy herein authorized shall not~~
~~exceed the limitation prescribed therefor by K.S.A. 79-1962, and amendments thereto, on~~
~~all taxable tangible property of the township, for the purposes specified in this section. The~~
~~tax levy shall be in addition to all other tax levies authorized or limited by law.~~

Sec. 63. K.S.A. 80-1909 is hereby amended to read as follows: 80-1909. In any township
where a township fire department has been created under the provisions of this act, the
township board shall have authority, subject to an election as hereinafter provided, to issue
bonds for the purpose of purchasing land, constructing or purchasing buildings to be used
as fire stations, constructing or purchasing fire equipment and supplies and for the payment
of other necessary expenses incident thereto. Before any such bonds are issued, the question
of ~~their~~ issuance shall be submitted to the voters of such township at a general or special
election to be called by the township board by resolution and to be held under the provisions
of article 1, chapter 10 of the Kansas Statutes Annotated, and the affirmative vote of a
majority of the votes cast at such election shall be sufficient to authorize the issuance of
such bonds.

The township board may also submit, at such election, the question whether the tax levy
provided in K.S.A. 80-1903 ~~hereof~~, and amendments thereto, shall be in excess of ~~the ag-~~
~~gregate tax limitations provided for townships by K.S.A. 79-1962 and any other limitations~~
~~provided by law~~ two mills, or four mills for townships in counties having a population of
more than 150,000 and less than 250,000, and if a majority of the votes cast at such election
shall be in the affirmative, the township board shall thereafter be authorized to make such
levy without regard to such limitations. The expense of any special election called under the
provisions hereof may be paid out of the proceeds of the bond issue, if such bonds shall be
authorized at such election, otherwise from the general fund of the township~~: Provided,~~
~~however, That~~. Only a single election board shall serve in any precinct at any such special
election.

Sec. 64. K.S.A. 80-1916 is hereby amended to read as follows: 80-1916. Any such town-
ship may create a township fire department to furnish fire protection within such township
and such fire department shall be operated under the direction of the township board and
~~said~~ such board shall have power to levy an annual tax ~~not to exceed the limitation prescribed~~
~~by K.S.A. 79-1962,~~ on all the taxable tangible property in such township, for the purpose of
paying the expenses of equipping, operating and maintaining such fire department. ~~Said tax~~
~~levy shall be in addition to all other tax levies authorized or limited by law and shall not be~~
~~subject to the aggregate tax levy limit prescribed by K.S.A. 79-1962, or acts amendatory~~
~~thereof.~~

Sec. 65. K.S.A. 80-1920 is hereby amended to read as follows: 80-1920. Subject to the
provisions of K.S.A. ~~1986 Supp.~~ 19-270, and amendments thereto, and upon the presentation
of such petition, the township board of any such township shall create a township fire
department. Such township board is hereby authorized and empowered to purchase fire-
fighting equipment for the use of the fire department and to provide buildings for the
housing and storage of the same. For the purpose of raising funds to pay the cost of such
equipment and housing facilities, the township board is hereby empowered to issue no-fund
warrants in an amount not exceeding $12,000. After the issuance of such no-fund warrants,
the township board shall make a tax levy at the first tax-levying period after such warrants
are issued, sufficient to pay such warrants and the interest thereon. In lieu of making only
one tax levy, such board, if it deems it advisable, may make a tax levy each year for not to
exceed five years in approximately equal installments for the purpose of paying the warrants
and the interest thereon.

~~All such tax levies shall be in addition to all other levies authorized or limited by law and~~
~~shall not be subject to the aggregate tax levy limitation prescribed by K.S.A. 79-1962, and~~
~~amendments thereto.~~ Such warrants shall be issued, registered, redeemed and bear interest
in the manner and be in the form prescribed by K.S.A. 79-2940, and amendments thereto,
except they shall not bear the notation required therein and may be issued without the
approval of the board of tax appeals. Any surplus existing after the redemption of the war-
rants shall be handled in the manner prescribed by K.S.A. 79-2940, and amendments
thereto. None of the provisions of the cash-basis and budget laws of this state shall apply to
any expenditures made, the payment of which has been provided for by the issuance of such
no-fund warrants.

Sec. 66. K.S.A. 80-1921 is hereby amended to read as follows: 80-1921. The township
board of any such township shall have full direction and control over the operation of such
township fire department and shall provide for the organization of volunteer members of
such department, to be compensated at a specified rate when attending fires, and may
provide special clothing and equipment for such volunteers, and may insure such volunteers
against accidental death and injury in the performance of their duties, and may do all other
things necessary or desirable to maintain and operate such department so as to furnish fire
protection to the inhabitants of such township. Such township board may levy an annual tax
~~of not to exceed the limitation prescribed by K.S.A. 79-1962, and amendments thereto,~~ on
all the taxable tangible property in such township for the purpose of paying the expenses of
equipping, operating and maintaining such fire department. Any tax levy authorized by this
section ~~shall be in addition to all other tax levies authorized or limited by law and shall not~~
~~be subject to the aggregate tax levy limit prescribed by K.S.A. 79-1962, and amendments~~
~~thereto, and~~ shall be in addition to the tax levy made to pay for no-fund warrants issued
pursuant to K.S.A. 80-1920, and amendments thereto. Except as otherwise specifically pro-
vided in this act, the provisions of K.S.A. 80-1906 and 80-1907, and amendments thereto,
shall apply to townships adopting the provisions of this act.

In addition to the tax levy herein authorized, the township board of Kickapoo, Tonganoxie,
Easton, Fairmount, Sherman and Delaware townships located in Leavenworth county may
levy an annual tax of not to exceed two mills on all the taxable tangible property in such
township for the purpose of purchasing additional equipment for such fire department. If
a petition in opposition to the tax levy authorized herein, signed by not less than 5% of the
qualified electors of such township is filed with the township board of such township, within
40 days after the effective date of this act, the tax levy shall not be made unless first approved
as a question submitted at the next general election or at a special election called for the
purpose of submitting the question. If such a petition is filed, the township board may cause
to be placed on the ballot at the next general election the question of whether such tax shall
be levied. If a majority of the votes cast and counted at such election are in favor of the
resolution, such governing body may levy the tax authorized herein. Upon this act taking
effect it shall be published once each week for two consecutive weeks in a newspaper having
general circulation in the township.

Sec. 67. K.S.A. 80-1924 is hereby amended to read as follows: 80-1924. The governing
body of the benefit district shall annually provide for the levying of a tax ~~of not to exceed~~
~~one-half (1/2) mill~~ upon the taxable tangible property in such benefit district and within the
township sufficient to pay the compensation agreed upon in the contract with the township
maintaining the fire department. ~~Such tax levy shall be in addition to all other tax levies~~
~~authorized or limited by law and shall not be subject to the aggregate tax levy limitation~~
~~prescribed by K.S.A. 79-1962 or acts amendatory thereof or supplemental thereto.~~

Sec. 68. K.S.A. 80-2006 is hereby amended to read as follows: 80-2006. (a) Whenever
authorized by an election as herein provided, the costs and expenses of constructing such
main, intercepting and outfall sewers and appurtenances, with or without sewage-disposal
plant, as above provided, together with the cost of acquiring land, engineering, appraisers,
legal and other incidental expense, excepting only such part of the cost as may be borne by
grant from the federal government, shall be assessed against the lots and pieces of ground
contained within the sewage district, and shall be levied and collected as one tax, in addition
to the other taxes and assessments, and shall be certified by the governing body of such
sewage district to the county clerk, and be placed by ~~him or her~~ such clerk upon the tax roll
for collection, subject to the same penalties, entitled to the same rebates, and collected in
the same manner as other taxes~~: Provided, That~~. The governing body may, in its discretion,
provide for the payment of the cost thereof by installments instead of levying the entire tax
or special assessment for such cost at one time; and for such installments, they may issue
bonds of the sewage district, which bonds may mature serially or otherwise during a period
of not more than ~~twenty-five~~ 25 years from the date of issuance, and, except as herein
provided, shall be subject to all of the provisions of article 1, chapter 10, of the Kansas
Statutes Annotated. Any bonds issued for such purposes shall be in addition to and may
exceed the limits of bonds for any other purposes as provided by law.

(b) ~~That~~ If the county planning board and the board of county commissioners of any
county in which a township sewage district has been created pursuant to the act of which
this section is amendatory, each shall declare by resolution that a main, intercepting, or
outfall sewer system or systems of such district, the plans and specifications of which have
been finally approved, as provided in K.S.A. 80-2004, and amendments thereto, to be of
public utility and necessary for the growth and needs of said county and necessary for the
protection of the public health, the bonds issued under the authority of subsection (a) of
~~this section~~ shall be, in addition to being obligations of the township sewage district, general
obligations of the county. In case of default in the payment of such bonds or the interest
thereon by the sewage district, the board of county commissioners of the county in which
such sewage district is located shall levy a tax on the tangible property in such county
sufficient to pay such bonds and interest~~, which tax levy shall be in addition to all other tax~~
~~levies authorized or limited by law and shall not be subject to or within the aggregate tax~~
~~levy limit prescribed by K.S.A. 79-1947 or acts amendatory thereof or supplemental thereto~~.

No statute limiting the amount of bonded indebtedness of any county shall apply to any
bonds issued under the authority of this section and such bonds shall not be considered in
applying any statute limiting bonded indebtedness.

Sec. 69. K.S.A. 80-2021 is hereby amended to read as follows: 80-2021. The governing
body of such sewage district shall have authority to ~~and shall~~ levy an annual tax ~~which shall~~
~~not exceed ten mills upon the dollar of assessed valuation of all real property~~ upon taxable
tangible property within such sewage district, for the purpose of paying the expense of
operation and maintenance of the sewage system within such district~~; and may use the~~
~~proceeds of such tax for the maintenance of all sewers in such district, including lateral~~
~~sewers, however constructed, for the operation of sewage disposal plant,~~ and for the payment
to any adjoining city or township, with which such sewage district may have contracted for
the disposal of sewage~~, of the contract price therefor, and for all other expense incident to~~
~~the operation and maintenance of such sewage system~~.

~~Whenever a sewage district has made tax levies as authorized by this act and has accu-~~
~~mulated a fund for the operation and maintenance of the sewage system and has contracted~~
~~with an adjacent city or township for the disposal of sewage and other expenses incidental~~
~~to the operation and maintenance of such sewage system and when such district has accu-~~
~~mulated unexpended funds which are no longer necessary for the operation and mainte-~~
~~nance of such system, the governing board of the sewage district may transfer the whole or~~
~~any portion of such accumulated and unexpended funds to the township road fund or the~~
~~fire department fund or to the general fund of the township in which the sewage district~~
~~was established. All levies of taxes authorized in this act shall be in addition to all other~~
~~levies authorized or limited by law, and the provisions of K.S.A. 79-1962, and any other~~
~~limitations provided for township tax levies, shall not be applicable thereto.~~

Sec. 70. K.S.A. 80-2201 is hereby amended to read as follows: 80-2201. The township
board of any township, having a population of more than ~~seven thousand five hundred~~
~~(7,500)~~ 7,500 and located in a county adjoining two cities either within or without the state
each of which has a population in excess of ~~one hundred twenty thousand (120,000)~~ 120,000,
if by resolution ~~they deem~~ the township board deems it necessary to protect the public
health and welfare of the inhabitants of such township, may acquire land by lease, purchase,
or under the provisions of K.S.A. 26-501 to 26-516, inclusive, and amendments thereto, by
condemnation, within or without such township, to be used for the disposal of trash and
garbage collected from the inhabitants of such township. For the purpose of acquiring such
land and maintenance thereof, a tax levy ~~in an amount not to exceed the limitation prescribed~~
~~by K.S.A. 79-1962, on all taxable tangible property may be made for the first year, and~~
~~thereafter a levy not to exceed the limitation prescribed therefor by K.S.A. 79-1962,~~ on all
taxable tangible property may be made annually~~, which said levies and each of them shall~~
~~be in addition to and outside of any other limit or aggregate limit fixed by law for such~~
~~township~~. The funds derived from such levies shall be placed in ~~a fund known as the ``garbage~~
~~and trash fund'' and be used only for the purpose of this act~~ the garbage and trash fund.

Sec. 71. K.S.A. 80-2204 is hereby amended to read as follows: 80-2204. Whenever the
township board of any township located in a county having a population of more than ~~fifty-~~
~~five thousand (55,000)~~ 55,000 and less than ~~one hundred thousand (100,000)~~ 100,000 finds
and determines by resolution ~~that~~ it is necessary to acquire a site or sites for the disposal of
garbage, rubbish and trash within or without the township, it the township board may acquire
such site or sites by gift, purchase or condemnation and may construct necessary facilities
thereon and purchase necessary equipment for the disposal of such garbage, rubbish and
trash. In the event the township board of any such township finds ~~that~~ it is necessary to
acquire such site or sites by condemnation the governing body of the county shall proceed
under the provisions of chapter 26 of the Kansas Statutes Annotated, and all acts amendatory
thereof and supplemental thereto, or in substitution thereof. Whenever any such township
shall so condemn such a site or sites, such township shall acquire a fee simple title thereto.

In order to pay for such site or sites and the construction of all necessary facilities and
equipment to be used in the disposal of garbage, rubbish and trash, the township board of
such township is authorized to issue general obligation bonds of the township in the manner
provided by the general bond law. Whenever such a site has been acquired, the township
board may pay the cost of the operation and maintenance of the same from the general
fund ~~of the township~~ or it may levy a special tax therefor ~~at a rate not to exceed the limitation~~
~~prescribed by K.S.A. 79-1962,~~ on all taxable tangible property of the township. Any two ~~(2)~~
or more of such townships may join in the acquisition of a site or sites for the disposal of
garbage, rubbish and trash and the operation and maintenance of ~~said~~ such sites as here-
tofore provided in this section; and the township boards of such townships are hereby
authorized and empowered to enter into agreements for such purposes.

New Sec. 72. In 1999, and in each year thereafter, all existing statutory fund mill levy
rate and aggregate levy rate limitations on taxing subdivisions are hereby suspended.

Section 73. K.S.A. 1998 Supp. 79-201a is hereby amended to read as follows: 79-201a.
The following described property, to the extent herein specified, shall be exempt from all
property or ad valorem taxes levied under the laws of the state of Kansas:

First. All property belonging exclusively to the United States, except property which
congress has expressly declared to be subject to state and local taxation.

Second. All property used exclusively by the state or any municipality or political subdi-
vision of the state. All property owned, being acquired pursuant to a lease-purchase agree-
ment or operated by the state or any municipality or political subdivision of the state, in-
cluding property which is vacant or lying dormant, which is used or is to be used for any
governmental or proprietary function and for which bonds may be issued or taxes levied to
finance the same, shall be considered to be used exclusively by the state, municipality or
political subdivision for the purposes of this section. The lease by a municipality or political
subdivision of the state of any real property owned or being acquired pursuant to a lease-
purchase agreement for the purpose of providing office space necessary for the performance
of medical services by a person licensed to practice medicine and surgery or osteopathic
medicine by the board of healing arts pursuant to K.S.A. 65-2801 et seq., and amendments
thereto, dentistry services by a person licensed by the Kansas dental board pursuant to
K.S.A. 65-1401 et seq., and amendments thereto, optometry services by a person licensed
by the board of examiners in optometry pursuant to K.S.A. 65-1501 et seq., and amendments
thereto, or K.S.A. 74-1501 et seq., and amendments thereto, podiatry services by a person
licensed by the board of healing arts pursuant to K.S.A. 65-2001 et seq., and amendments
thereto, or the practice of psychology by a person licensed by the behavioral sciences reg-
ulatory board pursuant to K.S.A. 74-5301 et seq., and amendments thereto, shall be con-
strued to be a governmental function, and such property actually and regularly used for
such purpose shall be deemed to be used exclusively for the purposes of this paragraph.
The lease by a municipality or political subdivision of the state of any real property, or
portion thereof, owned or being acquired pursuant to a lease-purchase agreement to any
entity for the exclusive use by it for an exempt purpose, including the purpose of displaying
or exhibiting personal property by a museum or historical society, if no portion of the lease
payments include compensation for return on the investment in such leased property shall
be deemed to be used exclusively for the purposes of this paragraph. All property leased,
other than property being acquired pursuant to a lease-purchase agreement, to the state or
any municipality or political subdivision of the state by any private entity shall not be con-
sidered to be used exclusively by the state or any municipality or political subdivision of the
state for the purposes of this section except that the provisions of this sentence shall not
apply to any such property subject to lease on the effective date of this act until the term
of such lease expires but property taxes levied upon any such property prior to tax year
1989, shall not be abated or refunded. Any property constructed or purchased with the
proceeds of industrial revenue bonds issued prior to July 1, 1963, as authorized by K.S.A.
12-1740 to 12-1749, or purchased with proceeds of improvement district bonds issued prior
to July 1, 1963, as authorized by K.S.A. 19-2776, or with proceeds of bonds issued prior to
July 1, 1963, as authorized by K.S.A. 19-3815a and 19-3815b, or any property improved,
purchased, constructed, reconstructed or repaired with the proceeds of revenue bonds is-
sued prior to July 1, 1963, as authorized by K.S.A. 13-1238 to 13-1245, inclusive, or any
property improved, reimproved, reconstructed or repaired with the proceeds of revenue
bonds issued after July 1, 1963, under the authority of K.S.A. 13-1238 to 13-1245, inclusive,
which had previously been improved, reconstructed or repaired with the proceeds of rev-
enue bonds issued under such act on or before July 1, 1963, shall be exempt from taxation
for so long as any of the revenue bonds issued to finance such construction, reconstruction,
improvement, repair or purchase shall be outstanding and unpaid. Any property constructed
or purchased with the proceeds of any revenue bonds authorized by K.S.A. 13-1238 to 13-
1245, inclusive, 19-2776, 19-3815a and 19-3815b, and amendments thereto, issued on or
after July 1, 1963, shall be exempt from taxation only for a period of 10 calendar years after
the calendar year in which the bonds were issued. Any property, all or any portion of which
is constructed or purchased with the proceeds of revenue bonds authorized by K.S.A. 12-
1740 to 12-1749, inclusive, and amendments thereto, issued on or after July 1, 1963 and
prior to July 1, 1981, shall be exempt from taxation only for a period of 10 calendar years
after the calendar year in which the bonds were issued. Except as hereinafter provided, any
property constructed or purchased wholly with the proceeds of revenue bonds issued on or
after July 1, 1981, under the authority of K.S.A. 12-1740 to 12-1749, inclusive, and amend-
ments thereto, shall be exempt from taxation only for a period of 10 calendar years after
the calendar year in which the bonds were issued. Except as hereinafter provided, any
property constructed or purchased in part with the proceeds of revenue bonds issued on or
after July 1, 1981, under the authority of K.S.A. 12-1740 to 12-1749, inclusive, and amend-
ments thereto, shall be exempt from taxation to the extent of the value of that portion of
the property financed by the revenue bonds and only for a period of 10 calendar years after
the calendar year in which the bonds were issued. The exemption of that portion of the
property constructed or purchased with the proceeds of revenue bonds shall terminate upon
the failure to pay all taxes levied on that portion of the property which is not exempt and
the entire property shall be subject to sale in the manner prescribed by K.S.A. 79-2301 et
seq., and amendments thereto. Property constructed or purchased in whole or in part with
the proceeds of revenue bonds issued on or after January 1, 1995, under the authority of
K.S.A. 12-1740 to 12-1749, inclusive, and amendments thereto, and used in any retail en-
terprise identified under the standard industrial classification codes, major groups 52
through 59, inclusive, except facilities used exclusively to house the headquarters or back
office operations of such retail enterprises identified thereunder, shall not be exempt from
taxation. For the purposes of the preceding provision ``standard industrial classification
code'' means a standard industrial classification code published in the Standard Industrial
Classification manual, 1987, as prepared by the statistical policy division of the office of
management and budget of the office of the president of the United States. ``Headquarters
or back office operations'' means a facility from which the enterprise is provided direction,
management, administrative services, or distribution or warehousing functions in support
of transactions made by the enterprise. Property purchased, constructed, reconstructed,
equipped, maintained or repaired with the proceeds of industrial revenue bonds issued
under the authority of K.S.A. 12-1740 et seq., and amendments thereto, which is located in
a redevelopment project area established under the authority of K.S.A. 12-1770 et seq. shall
not be exempt from taxation. Property purchased, acquired, constructed, reconstructed,
improved, equipped, furnished, repaired, enlarged or remodeled with all or any part of the
proceeds of revenue bonds issued under authority of K.S.A. 12-1740 to 12-1749a, inclusive,
and amendments thereto for any poultry confinement facility on agricultural land which is
owned, acquired, obtained or leased by a corporation, as such terms are defined by K.S.A.
17-5903 and amendments thereto, shall not be exempt from such taxation. Property pur-
chased, acquired, constructed, reconstructed, improved, equipped, furnished, repaired, en-
larged or remodeled with all or any part of the proceeds of revenue bonds issued under the
authority of K.S.A. 12-1740 to 12-1749a, inclusive, and amendments thereto, for a rabbit
confinement facility on agricultural land which is owned, acquired, obtained or leased by a
corporation, as such terms are defined by K.S.A. 17-5903 and amendments thereto, shall
not be exempt from such taxation.

Third. All works, machinery and fixtures used exclusively by any rural water district or
township water district for conveying or production of potable water in such rural water
district or township water district, and all works, machinery and fixtures used exclusively by
any entity which performed the functions of a rural water district on and after January 1,
1990, and the works, machinery and equipment of which were exempted hereunder on
March 13, 1995.

Fourth. All fire engines and other implements used for the extinguishment of fires, with
the buildings used exclusively for the safekeeping thereof, and for the meeting of fire com-
panies, whether belonging to any rural fire district, township fire district, town, city or village,
or to any fire company organized therein or therefor.

Fifth. All property, real and personal, owned by county fair associations organized and
operating under the provisions of K.S.A. 2-125 et seq. and amendments thereto.

Sixth. Property acquired and held by any municipality under the municipal housing law
(K.S.A. 17-2337 et seq.) and amendments thereto, except that such exemption shall not
apply to any portion of the project used by a nondwelling facility for profit making enterprise.

Seventh. All property of a municipality, acquired or held under and for the purposes of
the urban renewal law (K.S.A. 17-4742 et seq.) and amendments thereto except that such
tax exemption shall terminate when the municipality sells, leases or otherwise disposes of
such property in an urban renewal area to a purchaser or lessee which is not a public body
entitled to tax exemption with respect to such property.

Eighth. All property acquired and held by the Kansas armory board for armory purposes
under the provisions of K.S.A. 48-317, and amendments thereto.

Ninth. All property acquired and used by the Kansas turnpike authority under the au-
thority of K.S.A. 68-2001 et seq., and amendments thereto, K.S.A. 68-2030 et seq., and
amendments thereto, K.S.A. 68-2051 et seq., and amendments thereto, and K.S.A. 68-2070
et seq., and amendments thereto.

Tenth. All property acquired and used for state park purposes by the Kansas department
of wildlife and parks.

Eleventh. The state office building constructed under authority of K.S.A. 75-3607 et seq.,
and amendments thereto, and the site upon which such building is located.

Twelfth. All buildings erected under the authority of K.S.A. 76-6a01 et seq., and amend-
ments thereto, and all other student union buildings and student dormitories erected upon
the campus of any institution mentioned in K.S.A. 76-6a01, and amendments thereto, by
any other nonprofit corporation.

Thirteenth. All buildings, as the same is defined in subsection (c) of K.S.A. 76-6a13, and
amendments thereto, which are erected, constructed or acquired under the authority of
K.S.A. 76-6a13 et seq., and amendments thereto, and building sites acquired therefor.

Fourteenth. All that portion of the waterworks plant and system of the city of Kansas City,
Missouri, now or hereafter located within the territory of the state of Kansas pursuant to
the compact and agreement adopted by chapter 304 of the 1921 Session Laws of the state
of Kansas. [See K.S.A. 79-205].

Fifteenth. All property, real and personal, owned by a groundwater management district
organized and operating pursuant to K.S.A. 82a-1020, and amendments thereto.

Sixteenth. All property, real and personal, owned by the joint water district organized and
operating pursuant to K.S.A. 80-1616 et seq., and amendments thereto.

Seventeenth. All property, including interests less than fee ownership, acquired for the
state of Kansas by the secretary of transportation or a predecessor in interest which is used
in the administration, construction, maintenance or operation of the state system of high-
ways, regardless of how or when acquired.

Eighteenth. Any building used primarily as an industrial training center for academic or
vocational education programs designed for and operated under contract with private in-
dustry, and located upon a site owned, leased or being acquired by or for an area vocational
school, an area vocational-technical school, a technical college, or a community college, as
defined by K.S.A. 72-4412, and amendments thereto, and the site upon which any such
building is located.

Nineteenth. For all taxable years commencing after December 31, 1997, all buildings of
an area vocational school, an area vocational-technical school, a technical college or a com-
munity college, as defined by K.S.A. 72-4412, and amendments thereto, which are owned
and operated by any such school or college as a student union or dormitory, and the site
upon which any such building is located.

Except as otherwise specifically provided, the provisions of this section shall apply to all
taxable years commencing after December 31, ~~1997~~ 1998.

Sec. 74. K.S.A. 1998 Supp. 79-201b is hereby amended to read as follows: 79-201b.
The following described property, to the extent herein specified, shall be and is hereby
exempt from all property or ad valorem taxes levied under the laws of the state of Kansas:

First. All real property, and tangible personal property, actually and regularly used exclu-
sively for hospital purposes by a hospital as the same is defined by K.S.A. 65-425, and
amendments thereto, or a psychiatric hospital as the same was defined by K.S.A. 59-2902,
and amendments thereto, as in effect on January 1, 1976, which hospital or psychiatric
hospital is operated by a corporation organized not for profit under the laws of the state of
Kansas or by a corporation organized not for profit under the laws of another state and duly
admitted to engage in business in this state as a foreign, not-for-profit corporation, or a
public hospital authority; and all intangible property including moneys, notes and other
evidences of debt, and the income therefrom, belonging exclusively to such a corporation
and used exclusively for hospital, psychiatric hospital or public hospital authority purposes.
This exemption shall not be deemed inapplicable to property which would otherwise be
exempt pursuant to this paragraph because any such hospital, psychiatric hospital or public
hospital authority: (a) Uses such property for a nonexempt purpose which is minimal in
scope and insubstantial in nature if such use is incidental to the exempt purpose enumerated
in this paragraph; or (b) is reimbursed for the actual expense of using such property for the
exempt purposes enumerated in this paragraph or paragraph second of K.S.A. 79-201, and
amendments thereto; or (c) permits the use of such property for the exempt purposes
enumerated in this paragraph or paragraph second of K.S.A. 79-201, and amendments
thereto, by more than one agency or organization for one or more of such purposes.

Second. All real property, and tangible personal property, actually and regularly used
exclusively for adult care home purposes by an adult care home as the same is defined by
K.S.A. 39-923, and amendments thereto, which is operated by a corporation organized not
for profit under the laws of the state of Kansas or by a corporation organized not for profit
under the laws of another state and duly admitted to engage in business in this state as a
foreign, not-for-profit corporation, charges to residents for services of which produce an
amount which in the aggregate is less than the actual cost of operation of the home or the
services of which are provided to residents at the lowest feasible cost, taking into consid-
eration such items as reasonable depreciation, interest on indebtedness, acquisition costs,
interest and other expenses of financing acquisition costs, lease expenses and costs of services
provided by a parent corporation at its costs, and contributions to which are deductible
under the Kansas income tax act; and all intangible property including moneys, notes and
other evidences of debt, and the income therefrom, belonging exclusively to such corpo-
ration and used exclusively for adult care home purposes. For purposes of this paragraph
and for all taxable years commencing after December 31, 1976, an adult care home which
uses its property in a manner which is consistent with the federal internal revenue service
ruling 72-124 issued pursuant to section 501(c)(3) of the federal internal revenue code, shall
be deemed to be operating at the lowest feasible cost. The fact that real property or real or
tangible personal property may be leased from a not-for-profit corporation, which is exempt
from federal income taxation pursuant to section 501(c)(3) of the internal revenue code of
1986, and amendments thereto, and which is the parent corporation to the not-for-profit
operator of an adult care home, shall not be grounds to deny exemption or deny that such
property is actually and regularly used exclusively for adult care home purposes by an adult
care home, nor shall the terms of any such lease be grounds for any such denial. For all
taxable years commencing after December 31, 1995, such property shall be deemed to be
used exclusively for adult care home purposes when used as a not-for-profit day care center
for children which is licensed pursuant to K.S.A. 65-501 et seq., and amendments thereto.

Third. All real property, and tangible personal property, actually and regularly used ex-
clusively for private children's home purposes by a private children's home as the same is
defined by K.S.A. 75-3329, and amendments thereto, which is operated by a corporation
organized not for profit under the laws of the state of Kansas or by a corporation organized
not for profit under the laws of another state and duly admitted to engage in business in
this state as a foreign, not-for-profit corporation, charges to residents for services of which
produce an amount which in the aggregate is less than the actual cost of operation of the
home or the services of which are provided to residents at the lowest feasible cost, taking
into consideration such items as reasonable depreciation and interest on indebtedness, and
contributions to which are deductible under the Kansas income tax act; and all intangible
property including moneys, notes and other evidences of debt, and the income therefrom,
belonging exclusively to such a corporation and used exclusively for children's home pur-
poses.

Fourth. All real property and tangible personal property, actually and regularly used ex-
clusively for housing for elderly and handicapped persons having a limited or lower income,
or used exclusively for cooperative housing for persons having a limited or low income,
assistance for the financing of which was received under 12 U.S.C.A. 1701 et seq., or under
42 U.S.C.A. 1437 et seq., which is operated by a corporation organized not for profit under
the laws of the state of Kansas or by a corporation organized not for profit under the laws
of another state and duly admitted to engage in business in this state as a foreign, not-for-
profit corporation; and all intangible property including moneys, notes and other evidences
of debt, and the income therefrom, belonging exclusively to such a corporation and used
exclusively for the purposes of such housing. For the purposes of this subsection, cooperative
housing shall mean those not-for-profit cooperative housing projects operating pursuant to
sections 236 or 221(d)(3), or both, of the national housing act and which have been approved
as a cooperative housing project pursuant to applicable federal housing administration and
U.S. Department of Housing and Urban Development statutes, and rules and regulations,
during such time as the use of such properties are restricted pursuant to such act, statutes
or rules and regulations.

Fifth. All real property and tangible personal property, actually and regularly used exclu-
sively for housing for elderly persons, which is operated by a corporation organized not for
profit under the laws of the state of Kansas or by a corporation organized not for profit
under the laws of another state and duly admitted to engage in business in this state as a
foreign, not-for-profit corporation, in which charges to residents produce an amount which
in the aggregate is less than the actual cost of operation of the housing facility or the services
of which are provided to residents at the lowest feasible cost, taking into consideration such
items as reasonable depreciation and interest on indebtedness and contributions to which
are deductible under the Kansas income tax act; and all intangible property including mon-
eys, notes and other evidences of debt, and the income therefrom, belonging exclusively to
such corporation and used exclusively for the purpose of such housing. For purposes of this
paragraph and for all taxable years commencing after December 31, 1976, an adult care
home which uses its property in a manner which is consistent with the federal internal
revenue service ruling 72-124 issued pursuant to section 501(c)(3) of the federal internal
revenue code, shall be deemed to be operating at the lowest feasible cost. For all taxable
years commencing after December 31, 1995, such property shall be deemed to be used
exclusively for housing for elderly persons purposes when used as a not-for-profit day care
center for children which is licensed pursuant to K.S.A. 65-501 et seq., and amendments
thereto.

Sixth. All real property and tangible personal property actually and regularly used exclu-
sively for the purpose of group housing of mentally ill or retarded and other handicapped
persons which is operated by a corporation organized not for profit under the laws of the
state of Kansas or by a corporation organized not for profit under the laws of another state
and duly admitted to engage in business in this state as a foreign, not-for-profit corporation,
in which charges to residents produce an amount which in the aggregate is less than the
actual cost of operation of the housing facility or the services of which are provided to
residents at the lowest feasible cost, taking into consideration such items as reasonable
depreciation and interest on indebtedness and contributions to which are deductible under
the Kansas income tax act, and which is licensed as a facility for the housing of mentally ill
or retarded and other handicapped persons under the provisions of K.S.A. 75-3307b, and
amendments thereto, or as a rooming or boarding house used as a facility for the housing
of mentally retarded and other handicapped persons which is licensed as a lodging estab-
lishment under the provisions of K.S.A. 36-501 et seq., and amendments thereto.

The provisions of this section, except as otherwise specifically provided, shall apply to all
taxable years commencing after December 31, ~~1995~~ 1998.

Sec. 75. From and after April 1, 2000, K.S.A. 1998 Supp. 79-3606, as amended by
section 6 of this act, is hereby amended to read as follows: 79-3606. The following shall be
exempt from the tax imposed by this act:

(a) All sales of motor-vehicle fuel or other articles upon which a sales or excise tax has
been paid, not subject to refund, under the laws of this state except cigarettes as defined
by K.S.A. 79-3301 and amendments thereto, cereal malt beverages and malt products as
defined by K.S.A. 79-3817 and amendments thereto, including wort, liquid malt, malt syrup
and malt extract, which is not subject to taxation under the provisions of K.S.A. 79-41a02
and amendments thereto, motor vehicles taxed pursuant to K.S.A. 79-5117, and amend-
ments thereto, tires taxed pursuant to K.S.A. 1998 Supp. 65-3424d, and amendments
thereto, and drycleaning and laundry services taxed pursuant to K.S.A. 1998 Supp. 65-
34,150, and amendments thereto;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(2) For purposes of this subsection ``machinery and equipment used directly and pri-
marily'' shall include, but not be limited to:

(A) Mechanical machines or components thereof contributing to a manufacturing, as-
sembling or finishing process;

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

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

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

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

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

(A) Hand tools;

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

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

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

(E) furniture and buildings; and

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(aaa) all sales of tangible personal property and services purchased by a religious or-
ganization which is exempt from federal income taxation pursuant to section 501(c)(3) of
the federal internal revenue code, and used exclusively for religious purposes, and all sales
of tangible personal property or services purchased by a contractor for the purpose of
constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or re-
modeling facilities for any such organization which would be exempt from taxation under
the provisions of this section if purchased directly by such organization. Nothing in this
subsection shall be deemed to exempt the purchase of any construction machinery, equip-
ment or tools used in the constructing, equipping, reconstructing, maintaining, repairing,
enlarging, furnishing or remodeling facilities for any such organization. When any such
organization shall contract for the purpose of constructing, equipping, reconstructing, main-
taining, repairing, enlarging, furnishing or remodeling facilities, it shall obtain from the state
and furnish to the contractor an exemption certificate for the project involved, and the
contractor may purchase materials for incorporation in such project. The contractor shall
furnish the number of such certificate to all suppliers from whom such purchases are made,
and such suppliers shall execute invoices covering the same bearing the number of such
certificate. Upon completion of the project the contractor shall furnish to such organization
concerned a sworn statement, on a form to be provided by the director of taxation, that all
purchases so made were entitled to exemption under this subsection. All invoices shall be
held by the contractor for a period of five years and shall be subject to audit by the director
of taxation. If any materials purchased under such a certificate are found not to have been
incorporated in the building or other project or not to have been returned for credit or the
sales or compensating tax otherwise imposed upon such materials which will not be so
incorporated in the building or other project reported and paid by such contractor to the
director of taxation not later than the 20th day of the month following the close of the month
in which it shall be determined that such materials will not be used for the purpose for
which such certificate was issued, such organization concerned shall be liable for tax on all
materials purchased for the project, and upon payment thereof it may recover the same
from the contractor together with reasonable attorney fees. Any contractor or any agent,
employee or subcontractor thereof, who shall use or otherwise dispose of any materials
purchased under such a certificate for any purpose other than that for which such a certif-
icate is issued without the payment of the sales or compensating tax otherwise imposed upon
such materials, shall be guilty of a misdemeanor and, upon conviction therefor, shall be
subject to the penalties provided for in subsection (g) of K.S.A. 79-3615, and amendments
thereto. Sales tax paid on and after July 1, 1998, but prior to the effective date of this act
upon the gross receipts received from any sale exempted by the amendatory provisions of
this subsection shall be refunded. Each claim for a sales tax refund shall be verified and
submitted to the director of taxation upon forms furnished by the director and shall be
accompanied by any additional documentation required by the director. The director shall
review each claim and shall refund that amount of sales tax paid as determined under the
provisions of this subsection. All refunds shall be paid from the sales tax refund fund upon
warrants of the director of accounts and reports pursuant to vouchers approved by the
director or the director's designee;

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

(ccc) on and after July 1, 1999, all sales of tangible personal property and services
purchased by a primary care clinic or health center the primary purpose of which is to
provide services to medically underserved individuals and families, and which is exempt
from federal income taxation pursuant to section 501 (c)(3) of the federal internal revenue
code, and all sales of tangible personal property or services purchased by a contractor for
the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging,
furnishing or remodeling facilities for any such clinic or center which would be exempt from
taxation under the provisions of this section if purchased directly by such clinic or center.
Nothing in this subsection shall be deemed to exempt the purchase of any construction
machinery, equipment or tools used in the constructing, equipping, reconstructing, main-
taining, repairing, enlarging, furnishing or remodeling facilities for any such clinic or center.
When any such clinic or center shall contract for the purpose of constructing, equipping,
reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities, it shall
obtain from the state and furnish to the contractor an exemption certificate for the project
involved, and the contractor may purchase materials for incorporation in such project. The
contractor shall furnish the number of such certificate to all suppliers from whom such
purchases are made, and such suppliers shall execute invoices covering the same bearing
the number of such certificate. Upon completion of the project the contractor shall furnish
to such clinic or center concerned a sworn statement, on a form to be provided by the
director of taxation, that all purchases so made were entitled to exemption under this sub-
section. All invoices shall be held by the contractor for a period of five years and shall be
subject to audit by the director of taxation. If any materials purchased under such a certif-
icate are found not to have been incorporated in the building or other project or not to have
been returned for credit or the sales or compensating tax otherwise imposed upon such
materials which will not be so incorporated in the building or other project reported and
paid by such contractor to the director of taxation not later than the 20th day of the month
following the close of the month in which it shall be determined that such materials will not
be used for the purpose for which such certificate was issued, such clinic or center concerned
shall be liable for tax on all materials purchased for the project, and upon payment thereof
it may recover the same from the contractor together with reasonable attorney fees. Any
contractor or any agent, employee or subcontractor thereof, who shall use or otherwise
dispose of any materials purchased under such a certificate for any purpose other than that
for which such a certificate is issued without the payment of the sales or compensating tax
otherwise imposed upon such materials, shall be guilty of a misdemeanor and, upon con-
viction therefor, shall be subject to the penalties provided for in subsection (g) of K.S.A.
79-3615, and amendments thereto;

(ddd) on and after January 1, 1999, and before January 1, 2000, all sales of materials
and services purchased by any class II or III railroad as classified by the federal surface
transportation board for the construction, renovation, repair or replacement of class II or
III railroad track and facilities used directly in interstate commerce. In the event any such
track or facility for which materials and services were purchased sales tax exempt is not
operational for five years succeeding the allowance of such exemption, the total amount of
sales tax which would have been payable except for the operation of this subsection shall
be recouped in accordance with rules and regulations adopted for such purpose by the
secretary of revenue; and

(eee) on and after January 1, 1999, and before January 1, 2000, all sales of materials
and services purchased for the original construction, reconstruction, repair or replacement
of grain storage facilities, including railroad sidings providing access thereto.

Sec. 76. From and after April 1, 2000, K.S.A. 1998 Supp. 79-3606, as amended by
section 6 of this act, and K.S.A. 1998 Supp. 79-3606, as amended by section 18 of House
Bill No. 2168, are hereby repealed.

Sec. 77. From and after July 1, 1999, K.S.A. 1998 Supp. 79-3602 is hereby repealed.

Sec. 78. K.S.A. 2-610, 2-1318, 2-1319, 2-1322, 2-2007, 3-121, 12-1403, 12-1405, 12-
1617h, 19-236, 19-807d, 19-2803, 19-2803e, 19-3105, 19-3106, 19-3305, 19-4004, 19-4011,
19-4102, 65-212, 68-166, 68-518c, 68-582, 73-407, 76-326a, 79-201, 79-5a01, 79-1945, 79-
1946, 79-1947, 79-1947b, 79-1948, 79-1949, 79-1950, 79-1951, 79-1952, 79-1953, 79-1962,
79-32,197, 79-32,201, 80-115, 80-119, 80-808, 80-903, 80-932, 80-1417, 80-1503, 80-1509,
80-1537, 80-1806, 80-1903, 80-1909, 80-1916, 80-1920, 80-1921, 80-1924, 80-2006, 80-
2021, 80-2201, 80-2204 and 82a-308 and K.S.A. 1998 Supp. 79-201a, 79-201b, 79-32,117,
79-32,195 and 79-3606 are hereby repealed.

Sec. 79. This act shall take effect and be in force from and after its publication in the
Kansas register.'';

On page 1, in the title, by striking all of lines 10 to 12, inclusive; after line 12, by inserting:

``AN ACT enacting the tax reform and relief act of 1999; amending K.S.A. 2-610, 2-1318,
2-1319, 2-1322, 2-2007, 3-121, 12-1403, 12-1405, 12-1617h, 19-236, 19-807d, 19-2803, 19-
2803e, 19-3105, 19-3106, 19-3305, 19-4004, 19-4011, 19-4102, 65-212, 68-166, 68-518c,
68-582, 73-407, 76-326a, 79-201, 79-5a01, 79-1945, 79-1946, 79-1962, 79-32,197, 79-32,201,
80-115, 80-119, 80-808, 80-903, 80-932, 80-1417, 80-1503, 80-1509, 80-1537, 80-1806, 80-
1903, 80-1909, 80-1916, 80-1920, 80-1921, 80-1924, 80-2006, 80-2021, 80-2201, 80-2204
and 82a-308 and K.S.A. 1998 Supp. 79-201a, 79-201b, 79-32,117, 79-32,195, 79-3602, 79-
3606 and 79-3606, as amended by section 6 of this act, and repealing the existing sections;
also repealing K.S.A. 79-1947, 79-1947b, 79-1948, 79-1949, 79-1950, 79-1951, 79-1952 and
79-1953 and K.S.A. 1998 Supp. 79-3606, as amended by section 18 of House Bill No. 2168.'';

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

David Adkins

Clay Aurand

Melvin Minor
Conferees on the part of House

Audrey Langworthy

David R. Corbin

Janis K. Lee
Conferees on part of Senate

Senator Langworthy moved the Senate adopt the Conference Committee Report on SB
45.

On roll call, the vote was: Yeas 38, nays 1, 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, Jones, Jordan, Kerr,
Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Praeger, Pugh, Ranson, Salisbury, Sal-
mans, Steffes, Steineger, Stephens, Tyson, Umbarger, Vidricksen, Vratil.

Nays: Huelskamp.

Absent or not voting: Hardenburger.

The Conference Committee report was adopted.

EXPLANATION OF VOTE
Mr. President: I am voting for SB 45 but there is one provision that is wrong. With
the passage of this legislation all governing bodies have to pass a resolution if they intend
to increase property taxes except one. I believe the legislature should lead by example and
by exempting ourselves we fail our leadership responsibility.--Stan Clark

Mr. President: What is so special about this legislature that we set rules for others that
we are not willing to live under ourselves? We seek to require truth in taxation for all local
governments, but we exclude ourselves from that requirement in this bill. Isn't that the very
definition of tyranny?

While I strongly support the tax relief in this bill, I can not support a mandate on local
governments we are not requiring of this legislature.--Tim Huelskamp

Mr. President: I vote yes on SB 45, but I raise a serious issue regarding the section
dealing with property taxes and local government control. I agree with the intent of this
section of the legislation. It is very important that the public has the right to know whenever
local government wants to reap a windfall due to higher valuations. However, with the sunset
of the property tax lid, there is no longer a limit or control on local spending. Several
proposals have been made which would give the public the right to vote on increases, and
I am very concerned that this legislation gives no such provision for a public vote. At the
least, there should have been a provision allowing protest petitions, providing a fair, simple
outlet to call into doubt the decision of a local government when it chooses to benefit from
higher property valuations.--Marge Petty

Senators Feleciano, Hensley and Stephens request the record to show they concur with
the ``Explanation of Vote'' offered by Senator Petty on SB 45.

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2092, submits the following report:

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

On page 1, by striking all in lines 22 through 43;

By striking all on pages 2 through 5;

On page 6, preceding line 1, by inserting new material to read as follows:

``New Section 1. (a) The Kansas youth authority established by K.S.A. 75-7008 prior to
amendment by this act hereby is abolished.

(b) All of the powers, duties and functions of the Kansas youth authority are hereby
transferred to and conferred and imposed upon the Kansas advisory group on juvenile justice
and delinquency prevention.

(c) The Kansas advisory group on juvenile justice and delinquency prevention shall be
the successor in every way to the powers, duties and functions of the Kansas youth authority
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 Kansas
advisory group on juvenile justice and delinquency prevention shall be deemed to have the
same force and effect as if performed by the Kansas youth authority in which such powers,
duties and functions were vested prior to the effective date of this act.

(d) Whenever the Kansas youth authority is referred to or designated by a statute,
contract or other document, such reference or designation shall be deemed to apply to the
Kansas advisory group on juvenile justice and delinquency prevention.

(e) All of the records, memoranda, writings and property of the Kansas youth authority
shall be and hereby are transferred to the Kansas advisory group on juvenile justice and
delinquency prevention and such advisory group shall have legal custody of the same.

New Sec. 2. (a) (1) Whenever a person is adjudicated as a juvenile offender, the court
upon motion of the state, shall hold a hearing to consider imposition of a departure sentence.
The motion shall state that a departure is sought and the reasons and factors relied upon.
The hearing shall be scheduled so that the parties have adequate time to prepare and present
arguments regarding the issues of departure sentencing. The victim of a crime or the victim's
family shall be notified of the right to be present at the hearing for the convicted person by
the county or district attorney. The parties may submit written arguments to the court prior
to the date of the hearing and may make oral arguments before the court at the hearing.
The court shall review the victim impact statement, if available. Prior to the hearing, the
court shall transmit to the defendant or the defendant's attorney and the prosecuting attor-
ney copies of the predispositional investigation report.

(2) At the conclusion of the hearing or within 20 days thereafter, the court shall issue
findings of fact and conclusions of law regarding the issues submitted by the parties, and
shall enter an appropriate order.

(3) If a factual aspect of a crime is a statutory element of the crime or is used to
determine crime severity, that aspect of the current crime of conviction may be used as an
aggravating factor only if the criminal conduct constituting that aspect of the current crime
of conviction is significantly different from the usual criminal conduct captured by the aspect
of the crime. Subject to this provision, the nonexclusive lists of aggravating factors provided
in subsection (b)(2) of K.S.A. 21-4716, and amendments thereto, and in subsection (a) of
K.S.A. 21-4717, and amendments thereto, may be considered in determining whether sub-
stantial and compelling reasons exist.

(b) If the court decides to depart on its own volition, without a motion from the state,
the court must notify all parties of its intent and allow reasonable time for either party to
respond if they request. The notice shall state that a departure is intended by the court and
the reasons and factors relied upon.

(c) In each case in which the court imposes a sentence that deviates from the pre-
sumptive sentence, the court shall make findings of fact as to the reasons for departure
regardless of whether a hearing is requested.

(d) If the sentencing judge departs from the presumptive sentence, the judge shall state
on the record at the time of sentencing the substantial and compelling reasons for the
departure. When a departure sentence is appropriate, the sentencing judge may depart from
the matrix as provided in this section. When a sentencing judge departs in setting the
duration of a presumptive term of imprisonment:

(1) The presumptive term of imprisonment set in such departure shall not total more
than double the maximum duration of the presumptive imprisonment term;

(2) the court shall have no authority to reduce the minimum term of confinement as
defined within the sentencing matrix; and

(3) the maximum term for commitment of any juvenile offender to a juvenile correc-
tional facility is age 22 years, 6 months.

(e) A departure sentence may be appealed as provided in K.S.A. 38-1681, and amend-
ments thereto.

New Sec. 3. (a) A permanent guardian may be appointed after a finding of unfitness
pursuant to K.S.A. 38-1583 and amendments thereto or with the consent and agreement of
the parents.

(b) Upon appointment of the permanent guardian, the child in need of care proceeding
shall be dismissed.

Sec. 4. K.S.A. 1998 Supp. 38-1502 is hereby amended to read as follows: 38-1502. As
used in this code, unless the context otherwise indicates:

(a) ``Child in need of care'' means a person less than 18 years of age who:

(1) Is without adequate parental care, control or subsistence and the condition is not
due solely to the lack of financial means of the child's parents or other custodian;

(2) is without the care or control necessary for the child's physical, mental or emotional
health;

(3) has been physically, mentally or emotionally abused or neglected or sexually abused;

(4) has been placed for care or adoption in violation of law;

(5) has been abandoned or does not have a known living parent;

(6) is not attending school as required by K.S.A. 72-977 or 72-1111, and amendments
thereto;

(7) except in the case of a violation of K.S.A. 41-727, subsection (j) of K.S.A. 74-8810
or subsection (m) or (n) of K.S.A. 79-3321, and amendments thereto, or, except as provided
in subsection (a)(12) of K.S.A. 21-4204a and amendments thereto, does an act which, when
committed by a person under 18 years of age, is prohibited by state law, city ordinance or
county resolution but which is not prohibited when done by an adult;

(8) while less than 10 years of age, commits any act which if done by an adult would
constitute the commission of a felony or misdemeanor as defined by K.S.A. 21-3105 and
amendments thereto;

(9) is willfully and voluntarily absent from the child's home without the consent of the
child's parent or other custodian;

(10) is willfully and voluntarily absent at least a second time from a court ordered or
designated placement, or a placement pursuant to court order, if the absence is without the
consent of the person with whom the child is placed or, if the child is placed in a facility,
without the consent of the person in charge of such facility or such person's designee;

(11) has been residing in the same residence with a sibling or another person under 18
years of age, who has been physically, mentally or emotionally abused or neglected, or
sexually abused; or

(12) while less than 10 years of age commits the offense defined in K.S.A. 21-4204a and
amendments thereto.

(b) ``Physical, mental or emotional abuse or neglect'' means the infliction of physical,
mental or emotional injury or the causing of a deterioration of a child and may include, but
shall not be limited to, failing to maintain reasonable care and treatment, negligent treatment
or maltreatment or exploiting a child to the extent that the child's health or emotional well-
being is endangered. A parent legitimately practicing religious beliefs who does not provide
specified medical treatment for a child because of religious beliefs shall not for that reason
be considered a negligent parent; however, this exception shall not preclude a court from
entering an order pursuant to subsection (a)(2) of K.S.A. 38-1513 and amendments thereto.

(c) ``Sexual abuse'' means any act committed with a child which is described in article
35, chapter 21 of the Kansas Statutes Annotated and those acts described in K.S.A. 21-3602
or 21-3603, and amendments thereto, regardless of the age of the child.

(d) ``Parent,'' when used in relation to a child or children, includes a guardian, conser-
vator and every person who is by law liable to maintain, care for or support the child.

(e) ``Interested party'' means the state, the petitioner, the child, any parent and any
person found to be an interested party pursuant to K.S.A. 38-1541 and amendments thereto.

(f) ``Law enforcement officer'' means any person who by virtue of office or public em-
ployment is vested by law with a duty to maintain public order or to make arrests for crimes,
whether that duty extends to all crimes or is limited to specific crimes.

(g) ``Youth residential facility'' means any home, foster home or structure which provides
24-hour-a-day care for children and which is licensed pursuant to article 5 of chapter 65 of
the Kansas Statutes Annotated.

(h) ``Shelter facility'' means any public or private facility or home other than a juvenile
detention facility that may be used in accordance with this code for the purpose of providing
either temporary placement for the care of children in need of care prior to the issuance of
a dispositional order or longer term care under a dispositional order.

(i) ``Juvenile detention facility'' means any secure public or private facility used for the
lawful custody of accused or adjudicated juvenile offenders which must not be a jail.

(j) ``Adult correction facility'' means any public or private facility, secure or nonsecure,
which is used for the lawful custody of accused or convicted adult criminal offenders.

(k) ``Secure facility'' means a facility which is operated or structured so as to ensure that
all entrances and exits from the facility are under the exclusive control of the staff of the
facility, whether or not the person being detained has freedom of movement within the
perimeters of the facility, or which relies on locked rooms and buildings, fences or physical
restraint in order to control behavior of its residents. No secure facility shall be in a city or
county jail.

(l) ``Ward of the court'' means a child over whom the court has acquired jurisdiction by
the filing of a petition pursuant to this code and who continues subject to that jurisdiction
until the petition is dismissed or the child is discharged as provided in K.S.A. 38-1503 and
amendments thereto.

(m) ``Custody,'' whether temporary, protective or legal, means the status created by
court order or statute which vests in a custodian, whether an individual or an agency, the
right to physical possession of the child and the right to determine placement of the child,
subject to restrictions placed by the court.

(n) ``Placement'' means the designation by the individual or agency having custody of
where and with whom the child will live.

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

(p) ``Relative'' means a person related by blood, marriage or adoption but, when refer-
ring to a relative of a child's parent, does not include the child's other parent.

(q) ``Court-appointed special advocate'' means a responsible adult other than an attorney
guardian ad litem who is appointed by the court to represent the best interests of a child,
as provided in K.S.A. 38-1505a and amendments thereto, in a proceeding pursuant to this
code.

(r) ``Multidisciplinary team'' means a group of persons, appointed by the court or by
the state department of social and rehabilitation services under K.S.A. 38-1523a and amend-
ments thereto, which has knowledge of the circumstances of a child in need of care.

(s) ``Jail'' means:

(1) An adult jail or lockup; or

(2) a facility in the same building or on the same grounds as an adult jail or lockup,
unless the facility meets all applicable standards and licensure requirements under law and
there is (A) total separation of the juvenile and adult facility spatial areas such that there
could be no haphazard or accidental contact between juvenile and adult residents in the
respective facilities; (B) total separation in all juvenile and adult program activities within
the facilities, including recreation, education, counseling, health care, dining, sleeping, and
general living activities; and (C) separate juvenile and adult staff, including management,
security staff and direct care staff such as recreational, educational and counseling.

(t) ``Kinship care'' means the placement of a child in the home of the child's relative or
in the home of another adult with whom the child or the child's parent already has a close
emotional attachment.

(u) ``Juvenile intake and assessment worker'' means a responsible adult authorized to
perform intake and assessment services as part of the intake and assessment system estab-
lished pursuant to K.S.A. 75-7023, and amendments thereto.

(v) ``Abandon'' means to forsake, desert or cease providing care for the child without
making appropriate provisions for substitute care.

(w) ``Permanent guardianship'' means a judicially created relationship between child
and caretaker which is intended to be permanent and self-sustaining without ongoing state
oversight or intervention. The permanent guardian stands in loco parentis and exercises all
the rights and responsibilities of a parent. Upon appointment of a permanent guardian, the
child in need of care proceedings shall be dismissed. A permanent guardian may be appointed
after termination of parental rights.

(x) ``Aggravated circumstances'' means the abandonment, torture, chronic abuse, sexual
abuse or chronic, life threatening neglect of a child.

(y) ``Permanency hearing'' means a notice and opportunity to be heard is provided to
interested parties, foster parents, preadoptive parents or relatives providing care for the
child. The court, after consideration of the evidence, shall determine whether progress
toward the case plan goal is adequate or reintegration is a viable alternative, or if the case
should be referred to the county or district attorney for filing of a petition to terminate
parental rights or to appoint a permanent guardian.

(z) ``Extended out of home placement'' means a child has been in the custody of the
secretary and placed with neither parent for 15 of the most recent 22 months beginning 60
days after the date at which a child in the custody of the secretary was removed from the
home.

(aa) ``Educational institution'' means all schools at the elementary and secondary levels.

(bb) ``Educator'' means any administrator, teacher or other professional or paraprofes-
sional employee of an educational institution who has exposure to a pupil specified in sub-
section (a) of K.S.A. 1998 Supp. 72-89b03 and amendments thereto.

Sec. 5. K.S.A. 1998 Supp. 38-1528 is hereby amended to read as follows: 38-1528. (a)
To the extent possible, when any law enforcement officer takes into custody a child under
the age of 18 years, without a court order, the child shall forthwith be delivered to the
custody of the child's parent or other custodian unless there are reasonable grounds to
believe that such action would not be in the best interests of the child. Except as provided
in subsection (b), if the child is not delivered to the custody of the child's parent or other
custodian, the child shall forthwith be delivered to a facility or person designated by the
secretary or to a court designated shelter facility, court services officer, juvenile intake and
assessment worker, licensed attendant care center or other person. If, after delivery of the
child to a shelter facility, the person in charge of the shelter facility at that time and the law
enforcement officer determine that the child will not remain in the shelter facility, the law
enforcement officer shall deliver the child to a juvenile detention facility or other secure
facility, designated by the court, where the child shall be detained for not more than 24
hours, excluding Saturdays, Sundays and legal holidays. It shall be the duty of the law
enforcement officer to furnish to the county or district attorney, without unnecessary delay,
all the information in the possession of the officer pertaining to the child, the child's parents
or other persons interested in or likely to be interested in the child and all other facts and
circumstances which caused the child to be taken into custody.

(b) When any law enforcement officer takes into custody any child as provided in sub-
section (c) of K.S.A. 38-1527 and amendments thereto, proceedings shall be initiated in
accordance with the provisions of the interstate compact on juveniles, K.S.A. 38-1001 et
seq. and amendments thereto. Any child taken into custody pursuant to the interstate com-
pact on juveniles may be detained in a juvenile detention facility or other secure facility.

(c) Whenever a child under the age of 18 years is taken into custody by a law enforce-
ment officer without a court order and is thereafter placed in the custody of a shelter facility,
court services officer, juvenile intake and assessment worker, licensed attendant care center
or other person as authorized by this code, the facility or person shall have physical custody
and provide care and supervision for the child upon written application of the law enforce-
ment officer. The application shall state:

(1) The name and address of the child, if known;

(2) the names and addresses of the child's parents or nearest relatives and persons with
whom the child has been residing, if known; and

(3) the officer's belief that the child is a child in need of care and that there are rea-
sonable grounds to believe that the circumstances or condition of the child is such that,
unless the child is placed in the immediate custody of the shelter facility or other person,
it would be harmful to the child.

(d) A copy of the application shall be furnished by the facility or person receiving the
child to the county or district attorney without unnecessary delay.

(e) The shelter facility or other person designated by the court who has custody of the
child pursuant to this section shall discharge the child not later than 48 72 hours following
admission, excluding Saturdays, Sundays and legal holidays, unless a court has entered an
order pertaining to temporary custody or release.

(f) In absence of a court order to the contrary, the county or district attorney or the
placing law enforcement agency shall have the authority to direct at any time the release of
the child.

(g) When any law enforcement officer takes into custody any child as provided in sub-
section (d) of K.S.A. 38-1527, and amendments thereto, the child shall forthwith be deliv-
ered to the school in which the child is enrolled, any location designated by the school in
which the child is enrolled to address truancy issues or the child's parent or other custodian.

Sec. 6. K.S.A. 38-1542 is hereby amended to read as follows: 38-1542. (a) The court
upon verified application may issue ex parte an order directing that a child be held in
protective custody and, if the child has not been taken into custody, an order directing that
the child be taken into custody. The application shall state:

(1) The applicant's belief that the child is a child in need of care and is likely to sustain
harm if not immediately afforded protective custody; and

(2) the specific facts which are relied upon to support the belief.

(b) (1) The order of protective custody may be issued only after the court has deter-
mined there is probable cause to believe the allegations in the application are true. The
order shall remain in effect until the temporary custody hearing provided for in K.S.A. 38-
1543 and amendments thereto, unless earlier rescinded by the court.

(2) ~~Prior to July 1, 1993,~~ No child shall be held in protective custody for more than 72
hours, excluding Saturdays, Sundays and legal holidays, unless within the 72-hour period a
determination is made as to the necessity for temporary custody in a temporary custody
hearing. Nothing in this subsection (b)(2) shall be construed to mean that the child must
remain in protective custody for 72 hours.

~~(3) On and after July 1, 1993, no child shall be held in protective custody for more than~~
~~48 hours, excluding Saturdays, Sundays and legal holidays, unless within the 48-hour period~~
~~a determination is made as to the necessity for temporary custody in a temporary custody~~
~~hearing. Nothing in this subsection (b)(3) shall be construed to mean that the child must~~
~~remain in protective custody for 48 hours.~~

(c) Whenever the court determines the necessity for an order of protective custody, the
court may place the child in the protective custody of: (1) A parent or other person having
custody of the child and may enter a restraining order pursuant to subsection (d); (2) a
person, other than the parent or other person having custody, who shall not be required to
be licensed under article 5 of chapter 65 of the Kansas Statutes Annotated; (3) a youth
residential facility; or (4) the secretary. When the child is placed in the protective custody
of the secretary, the secretary shall have the discretionary authority to place the child with
a parent or to make other suitable placement for the child. When circumstances require, a
child in protective custody may be placed in a juvenile detention facility or other secure
facility pursuant to an order of protective custody for not to exceed 24 hours, excluding
Saturdays, Sundays and legal holidays.

(d) The order of protective custody shall be served on the child's parents and any other
person having legal custody of the child. The order shall prohibit all parties from removing
the child from the court's jurisdiction without the court's permission.

(e) If the court issues an order of protective custody, the court may also enter an order
restraining any alleged perpetrator of physical, sexual, mental or emotional abuse of the
child from residing in the child's home; visiting, contacting, harassing or intimidating the
child; or attempting to visit, contact, harass or intimidate the child. Such restraining order
shall be served on any alleged perpetrator to whom the order is directed.

(f) The court shall not enter an order removing a child from the custody of a parent
pursuant to this section unless the court first finds from evidence presented by the petitioner
that reasonable efforts have been made to prevent or eliminate the need for removal of the
child or that an emergency exists which threatens the safety of the child and requires the
immediate removal of the child. Such findings shall be included in any order entered by
the court.

Sec. 7. K.S.A. 1998 Supp. 38-1543 is hereby amended to read as follows: 38-1543. (a)
Upon notice and hearing, the court may issue an order directing who shall have temporary
custody and may modify the order during the pendency of the proceedings as will best serve
the child's welfare.

(b) A hearing ~~hereunder~~ pursuant to this section shall be held within 48 72 hours,
excluding Saturdays, Sundays and legal holidays, following a child having been taken into
protective custody.

(c) Whenever it is determined that a temporary custody hearing is required, the court
shall immediately set the time and place for the hearing. Notice of a temporary custody
hearing shall be in substantially the following form:

(Name of Court)

(Caption of Case)

NOTICE OF TEMPORARY CUSTODY HEARING

TO:

(Names)	(Relationship)	(Addresses)

On ________, ________, 19__, at ______ o'clock __m. the court will
(day) (date)
conduct a hearing at ____________ to determine if the above named child or chil-
dren should be in the temporary custody of some person or agency other than the parent
or other person having legal custody prior to the hearing on the petition filed in the above
captioned case. The court may order one or both parents to pay child support.

____________, an attorney, has been appointed as guardian ad litem for the child
or children. Each parent or other legal custodian has the right to appear and be heard
personally, either with or without an attorney. An attorney will be appointed for a parent
who can show that the parent is not financially able to hire one.

Date ________, 19__

Clerk of the District Court

by ________________

(Seal)
REPORT OF SERVICE I certify that I have delivered a true copy of the above notice to the persons above named
in the manner and at the times indicated below:

Name	Location of Service	Manner of Service	Date	Time
	(other than above)

Date Returned ________, 19__

________________

(Signature)

________________

(Title)
(d) Notice of the temporary custody hearing shall be given at least 24 hours prior to the
hearing. The court may continue the hearing to afford the 24 hours prior notice or, with
the consent of the party, proceed with the hearing at the designated time. If an order of
temporary custody is entered and the parent or other person having custody of the child
has not been notified of the hearing, did not appear or waive appearance and requests a
rehearing, the court shall rehear the matter without unnecessary delay.

(e) Oral notice may be used for giving notice of a temporary custody hearing where
there is insufficient time to give written notice. Oral notice is completed upon filing a
certificate of oral notice in substantially the following form:

(Name of Court) (Caption of Case)

CERTIFICATE OF ORAL NOTICE OF TEMPORARY CUSTODY HEARING I gave oral notice that the court will conduct a hearing at ______ o'clock __m. on
________, 19__, to the persons listed, in the manner and at the times indicated
below:

Name	Relationship	Date	Time	Method of Communication
				(in person or telephone)

I advised each of the above persons that:

(1) The hearing is to determine if the above child or children should be in the tem-
porary custody of a person or agency other than a parent;

(2) the court will appoint an attorney to serve as guardian ad litem for the child or
children named above;

(3) each parent or legal custodian has the right to appear and be heard personally
either with or without an attorney;

(4) an attorney will be appointed for a parent who can show that the parent is not
financially able to hire an attorney; and

(5) the court may order one or both parents to pay child support.

________________

(Signature)

________________

(Name Printed)

________________

(Title)
(f) The court may enter an order of temporary custody after determining that: (1) The
child is dangerous to self or to others; (2) the child is not likely to be available within the
jurisdiction of the court for future proceedings; or (3) the health or welfare of the child may
be endangered without further care.

(g) Whenever the court determines the necessity for an order of temporary custody the
court may place the child in the temporary custody of: (1) A parent or other person having
custody of the child and may enter a restraining order pursuant to subsection (h); (2) a
person, other than the parent or other person having custody, who shall not be required to
be licensed under article 5 of chapter 65 of the Kansas Statutes Annotated; (3) a youth
residential facility; or (4) the secretary. When the child is placed in the temporary custody
of the secretary, the secretary shall have the discretionary authority to place the child with
a parent or to make other suitable placement for the child. When circumstances require, a
child may be placed in a juvenile detention facility or other secure facility, but the total
amount of time that the child may be held in such facility under this section and K.S.A. 38-
1542 and amendments thereto shall not exceed 24 hours, excluding Saturdays, Sundays and
legal holidays. The order of temporary custody shall remain in effect until modified or
rescinded by the court or a disposition order is entered but not exceeding 60 days, unless
good cause is shown and stated on the record.

(h) If the court issues an order of temporary custody, the court may enter an order
restraining any alleged perpetrator of physical, sexual, mental or emotional abuse of the
child from residing in the child's home; visiting, contacting, harassing or intimidating the
child; or attempting to visit, contact, harass or intimidate the child.

(i) The court shall not enter an order removing a child from the custody of a parent
pursuant to this section unless the court first finds from evidence presented by the petitioner
that reasonable efforts have been made to prevent or eliminate the need for removal of the
child or that an emergency exists which threatens the safety of the child and requires the
immediate removal of the child. Such findings shall be included in any order entered by
the court.

Sec. 8. K.S.A. 1998 Supp. 38-1562 is hereby amended to read as follows: 38-1562. (a)
At any time after a child has been adjudicated to be a child in need of care and prior to
disposition, the judge shall permit any interested parties, and any persons required to be
notified pursuant to subsection (b), to be heard as to proposals for appropriate disposition
of the case.

(b) Before entering an order placing the child in the custody of a person other than the
child's parent, the court shall require notice of the time and place of the hearing to be given
to all the child's grandparents at their last known addresses or, if no grandparent is living
or if no living grandparent's address is known, to the closest relative of each of the child's
parents whose address is known, and to the foster parent, preadoptive parent or relative
providing care. Such notice shall be given by restricted mail not less than 10 business days
before the hearing and shall state that the person receiving the notice shall have an oppor-
tunity to be heard at the hearing. The provisions of this subsection shall not require addi-
tional notice to any person otherwise receiving notice of the hearing pursuant to K.S.A. 38-
1536 and amendments thereto. Individuals receiving notice pursuant to this subsection shall
not be made a party to the action solely on the basis of this notice and opportunity to be
heard.

(c) Prior to entering an order of disposition, the court shall give consideration to the
child's physical, mental and emotional condition; the child's need for assistance; the manner
in which the parent participated in the abuse, neglect or abandonment of the child; any
relevant information from the intake and assessment process; and the evidence received at
the dispositional hearing. In determining when reunification is a viable alternative, the court
shall specifically consider whether the parent has been found by a court to have: (1) Com-
mitted murder in the first degree, K.S.A. 21-3401 and amendments thereto, murder in the
second degree, K.S.A. 21-3402 and amendments thereto, capital murder, K.S.A. 21-3439
and amendments thereto, voluntary manslaughter, K.S.A. 21-3403 and amendments thereto
or violated a law of another state which prohibits such murder or manslaughter of a child;
(2) aided or abetted, attempted, conspired or solicited to commit such murder or voluntary
manslaughter of a child as provided in subsection (c)(1); (3) committed a felony battery that
resulted in bodily injury to the child or another child; (4) subjected the child or another
child to aggravated circumstances as defined in subsection (x) of K.S.A. 38-1502 and amend-
ments thereto; (5) parental rights of the parent to another child have been terminated
involuntarily; or (6) the child has been in extended out of home placement as defined in
subsection (z) of K.S.A. 38-1502 and amendments thereto. If reintegration is not a viable
alternative, the court shall consider whether a compelling reason has been documented in
the case plan to find neither adoption nor permanent guardianship are in the best interests
of the child, the child is in a stable placement with a relative, or services set out in the case
plan necessary for the safe return of the child have been made available to the parent with
whom reintegration is planned. If reintegration is not a viable alternative and either adoption
or permanent guardianship might be in the best interests of the child, the county or district
attorney or the county or district attorney's designee shall file a motion to terminate parental
rights or permanent guardianship within 30 days and the court shall set a hearing on such
motion within 90 days of the filing of such motion. No such hearing is required when the
parents voluntarily relinquish parental rights or agree to appointment of a permanent
guardian.

Sec. 9. K.S.A. 1998 Supp. 38-1565 is hereby amended to read as follows: 38-1565. (a)
If a child is placed outside the child's home and no plan is made a part of the record of the
dispositional hearing, a written plan shall be prepared which provides for reintegration of
the child into the child's family or, if reintegration is not a viable alternative, for other
placement of the child. Reintegration may not be a viable alternative when the: (1) Parent
has been found by a court to have committed murder in the first degree, K.S.A. 21-3401
and amendments thereto, murder in the second degree, K.S.A. 21-3402 and amendments
thereto, capital murder, K.S.A. 21-3439 and amendments thereto, voluntary manslaughter,
K.S.A. 21-3403 and amendments thereto or violated a law of another state which prohibits
such murder or manslaughter of a child; (2) parent aided or abetted, attempted, conspired
or solicited to commit such murder or voluntary manslaughter of a child as provided in
subsection (a)(1); (3) parent committed a felony battery that resulted in bodily injury to the
child or another child; (4) parent has subjected the child or another child to aggravated
circumstances as defined in subsection (x) of K.S.A. 38-1502, and amendments thereto; (5)
parental rights of the parent to another child have been terminated involuntarily; or (6) the
child has been in extended out of home placement as defined in subsection (z) of K.S.A.
38-1502 and amendments thereto. If the goal is reintegration into the family, the plan shall
include measurable objectives and time schedules for reintegration. The plan shall be sub-
mitted to the court not later than 30 days after the dispositional order is entered. If the
child is placed in the custody of the secretary, the plan shall be prepared and submitted by
the secretary. If the child is placed in the custody of a facility or person other than the
secretary, the plan shall be prepared and submitted by a court services officer.

(b) A court services officer or, if the child is in the secretary's custody, the secretary
shall submit to the court, at least every six months, a written report of the progress being
made toward the goals of the plan submitted pursuant to subsection (a). If the child is placed
in foster care, the foster parent or parents shall submit to the court, at least every six months,
a report in regard to the child's adjustment, progress and condition. The department of
social and rehabilitation services shall notify the foster parent or parents of the foster parent's
or parent's duty to submit such report, on a form provided by the department of social and
rehabilitation services, at least two weeks prior to the date when the report is due, and the
name of the judge and the address of the court to which the report is to be submitted. Such
report shall be confidential and shall only be reviewed by the court and the child's guardian
ad litem. The court shall review the progress being made toward the goals of the plan and
the foster parent report and, if the court determines that progress is inadequate or that the
plan is no longer viable, the court shall hold a hearing pursuant to subsection (c). If the
secretary has custody of the child, such hearing shall be held no more than 12 months after
the child is placed outside the child's home and at least every 12 months thereafter. For
children in the custody of the secretary prior to July 1, 1998, within 30 days of receiving a
request from the secretary, a permanency hearing shall be held. If the goal of the plan
submitted pursuant to subsection (a) is reintegration into the family and the court deter-
mines after 12 months from the time such plan is first submitted that progress is inadequate,
the court shall hold a hearing pursuant to subsection (c). Nothing in this subsection shall
be interpreted to prohibit termination of parental rights prior to the expiration of 12 months.

(c) Whenever a hearing is required under subsection (b), the court shall notify all in-
terested parties and the foster parents, preadoptive parents or relatives providing care for
the child and hold a hearing. Individuals receiving notice pursuant to this subsection shall
not be made a party to the action solely on the basis of this notice and opportunity to be
heard. After providing the interested parties, foster parents, preadoptive parents or relatives
providing care for the child an opportunity to be heard, the court shall determine whether
the child's needs are being adequately met and whether reintegration continues to be a
viable alternative. If the court finds reintegration is no longer a viable alternative, the court
shall consider whether the child is in a stable placement with a relative, services set out in
the case plan necessary for the safe return of the child have been made available to the
parent with whom reintegration is planned or compelling reasons are documented in the
case plan to support a finding that neither adoption nor permanent guardianship are in the
child's best interest. If reintegration is not a viable alternative and either adoption or per-
manent guardianship might be in the best interests of the child, the county or district
attorney or the county or district attorney's designee shall file a motion to terminate parental
rights or for permanent guardianship within 30 days and the court shall set a hearing on
such motion within 90 days of the filing of such motion. When the court finds reintegration
continues to be a viable alternative, the court may rescind any of its prior dispositional
orders and enter any dispositional order authorized by this code or may order that a new
plan for the reintegration be prepared and submitted to the court. No such hearing is
required when the parents voluntarily relinquish parental rights or agree to appointment of
a permanent guardian.

Sec. 10. K.S.A. 1998 Supp. 38-1583 is hereby amended to read as follows: 38-1583. (a)
When the child has been adjudicated to be a child in need of care, the court may terminate
parental rights when the court finds by clear and convincing evidence that the parent is
unfit by reason of conduct or condition which renders the parent unable to care properly
for a child and the conduct or condition is unlikely to change in the foreseeable future.

(b) In making a determination hereunder the court shall consider, but is not limited to,
the following, if applicable:

(1) Emotional illness, mental illness, mental deficiency or physical disability of the par-
ent, of such duration or nature as to render the parent unlikely to care for the ongoing
physical, mental and emotional needs of the child;

(2) conduct toward a child of a physically, emotionally or sexually cruel or abusive
nature;

(3) excessive use of intoxicating liquors or narcotic or dangerous drugs;

(4) physical, mental or emotional neglect of the child;

(5) conviction of a felony and imprisonment;

(6) unexplained injury or death of another child or stepchild of the parent;

(7) reasonable efforts by appropriate public or private child caring agencies have been
unable to rehabilitate the family; and

(8) lack of effort on the part of the parent to adjust the parent's circumstances, conduct
or conditions to meet the needs of the child.

(c) In addition to the foregoing, when a child is not in the physical custody of a parent,
the court, in proceedings concerning the termination of parental rights, shall also consider,
but is not limited to the following:

(1) Failure to assure care of the child in the parental home when able to do so;

(2) failure to maintain regular visitation, contact or communication with the child or
with the custodian of the child;

(3) failure to carry out a reasonable plan approved by the court directed toward the
integration of the child into the parental home; and

(4) failure to pay a reasonable portion of the cost of substitute physical care and main-
tenance based on ability to pay.

In making the above determination, the court may disregard incidental visitations, con-
tacts, communications or contributions.

(d) The rights of the parents may be terminated as provided in this section if the court
finds that the parents have abandoned the child or the child was left under such circum-
stances that the identity of the parents is unknown and cannot be ascertained, despite
diligent searching, and the parents have not come forward to claim the child within three
months after the child is found.

(e) The existence of any one of the above standing alone may, but does not necessarily,
establish grounds for termination of parental rights. The determination shall be based on
an evaluation of all factors which are applicable. In considering any of the above factors for
terminating the rights of a parent, the court shall give primary consideration to the physical,
mental or emotional condition and needs of the child. If presented to the court and subject
to the provisions of K.S.A. 60-419, and amendments thereto, the court shall consider as
evidence testimony from a person licensed to practice medicine and surgery, a licensed
psychologist or a licensed social worker expressing an opinion relating to the physical, mental
or emotional condition and needs of the child. The court shall consider any such testimony
only if the licensed professional providing such testimony is subject to cross-examination.

(f) A termination of parental rights under the Kansas code for care of children shall not
terminate the right of the child to inherit from or through the parent. Upon such termi-
nation, all the rights of birth parents to such child, including their right to inherit from or
through such child, shall cease.

(g) If, after finding the parent unfit, the court determines a compelling reason why it is
not in the best interests of the child to terminate parental rights or upon agreement of the
parents, the court may award permanent guardianship to an individual providing care for
the child, a relative or other person with whom the child has a close emotional attachment.
Prior to awarding permanent guardianship, the court shall receive and consider an assess-
ment as provided in K.S.A. 59-2132 and amendments thereto of any potential permanent
guardian. Upon appointment of a permanent guardian, the court shall enter an order dis-
charging the child from the court's jurisdiction.

(h) If a parent is convicted of an offense as provided in subsection (7) of K.S.A. 38-1585
and amendments thereto or is adjudicated a juvenile offender because of an act which if
committed by an adult would be an offense as provided in subsection (7) of K.S.A. 38-1585
and amendments thereto, and if the victim was the other parent of a child, the court may
disregard such convicted or adjudicated parent's opinions or wishes in regard to the place-
ment of such child.

Sec. 11. K.S.A. 1998 Supp. 38-1602 is hereby amended to read as follows: 38-1602. As
used in this code, unless the context otherwise requires:

(a) ``Juvenile'' means a person 10 or more years of age but less than 18 years of age.

(b) ``Juvenile offender'' means a person who ~~does an act~~ commits an offense while a
juvenile which if ~~done~~ committed by an adult would constitute the commission of a felony
or misdemeanor as defined by K.S.A. 21-3105, and amendments thereto, or who violates
the provisions of K.S.A. 21-4204a or K.S.A. 41-727 or subsection (j) of K.S.A. 74-8810, and
amendments thereto, but does not include:

(1) A person 14 or more years of age who commits a traffic offense, as defined in
subsection (d) of K.S.A. 8-2117, and amendments thereto;

(2) a person 16 years of age or over who commits an offense defined in chapter 32 of
the Kansas Statutes Annotated;

(3) a person ~~whose prosecution as an adult is authorized pursuant to K.S.A. 38-1636~~
~~and amendments thereto and whose prosecution results in the conviction of an adult crime;~~
or

~~(4) a person who has been found to be an extended jurisdiction juvenile pursuant to~~
~~subsection (a)(2) of K.S.A. 38-1636, and amendment thereto, and whose stay of adult sen-~~
~~tence execution has been revoked~~ under 18 years of age who previously has been:

(A) Convicted as an adult under the Kansas code of criminal procedure;

(B) sentenced as an adult under the Kansas code of criminal procedure following ter-
mination of status as an extended jurisdiction juvenile pursuant to K.S.A. 38-16,126, and
amendments thereto; or

(C) convicted or sentenced as an adult in another state or foreign jurisdiction under
substantially similar procedures described in K.S.A. 38-1636, and amendments thereto, or
because of attaining the age of majority designated in that state or jurisdiction.

(c) ``Parent,'' when used in relation to a juvenile or a juvenile offender, includes a guard-
ian, conservator and every person who is by law liable to maintain, care for or support the
juvenile.

(d) ``Law enforcement officer'' means any person who by virtue of that person's office
or public employment is vested by law with a duty to maintain public order or to make
arrests for crimes, whether that duty extends to all crimes or is limited to specific crimes.

(e) ``Youth residential facility'' means any home, foster home or structure which provides
twenty-four-hour-a-day care for juveniles and which is licensed pursuant to article 5 of
chapter 65 of the Kansas Statutes Annotated.

(f) ``Juvenile detention facility'' means any secure public or private facility which is used
for the lawful custody of accused or adjudicated juvenile offenders and which ~~must~~ shall
not be a jail.

(g) ``Juvenile correctional facility'' means a facility operated by the commissioner for
juvenile offenders.

(h) ``Warrant'' means a written order by a judge of the court directed to any law en-
forcement officer commanding the officer to take into custody the juvenile named or de-
scribed therein.

(i) ``Commissioner'' means the commissioner of juvenile justice.

(j) ``Jail'' means:

(1) An adult jail or lockup; or

(2) a facility in the same building as an adult jail or lockup, unless the facility meets all
applicable licensure requirements under law and there is (A) total separation of the juvenile
and adult facility spatial areas such that there could be no haphazard or accidental contact
between juvenile and adult residents in the respective facilities; (B) total separation in all
juvenile and adult program activities within the facilities, including recreation, education,
counseling, health care, dining, sleeping, and general living activities; and (C) separate ju-
venile and adult staff, including management, security staff and direct care staff such as
recreational, educational and counseling.

(k) ``Court-appointed special advocate'' means a responsible adult, other than an attor-
ney appointed pursuant to K.S.A. 38-1606 and amendments thereto, who is appointed by
the court to represent the best interests of a child, as provided in K.S.A. 1998 Supp. 38-
1606a, and amendments thereto, in a proceeding pursuant to this code.

(l) ``Juvenile intake and assessment worker'' means a responsible adult authorized to
perform intake and assessment services as part of the intake and assessment system estab-
lished pursuant to K.S.A. ~~76-3202~~ 75-7023, and amendments thereto.

(m) ``Institution'' means the following institutions: The Atchison juvenile correctional
facility, the Beloit juvenile correctional facility, the Larned juvenile correctional facility and
the Topeka juvenile correctional facility.

(n) ``~~Sanction~~ Sanctions house'' means a facility which is operated or structured so as to
ensure that all entrances and exits from the facility are under the exclusive control of the
staff of the facility, whether or not the person being detained has freedom of movement
within the perimeters of the facility, or which relies on locked rooms and buildings, fences,
or physical restraint in order to control the behavior of its residents. Upon an order from
the court, a licensed juvenile detention facility may serve as a ~~sanction~~ sanctions house. A
~~sanction house may be physically connected to a nonsecure shelter facility provided the~~
~~sanction house is not a licensed juvenile detention facility.~~

(o) ``Sentencing risk assessment tool'' means an instrument administered to juvenile
offenders which delivers a score, or group of scores, describing, but not limited to describing,
the juvenile's potential risk to the community.

(p) ``Educational institution'' means all schools at the elementary and secondary levels.

(q) ``Educator'' means any administrator, teacher or other professional or paraprofes-
sional employee of an educational institution who has exposure to a pupil specified in sub-
section (a)(1) through (5) of K.S.A. 1998 Supp. 72-89b03, and amendments thereto.'';

By renumbering the remaining sections accordingly;

On page 7, in line 13, preceding ``The'', by inserting ``The Kansas code for care of children
shall apply when necessary to carry out the provisions of subsection (d) of K.S.A. 38-1664,
and amendments thereto.

(f) '';

On page 8, in line 4, following the period, by inserting ``Any court services officer or
juvenile community correction officer may arrest a juvenile without a warrant or may dep-
utize any other officer with power of arrest to arrest a juvenile without a warrant by giving
the officer a written statement setting forth that the juvenile, in the judgment of the court
services officer or juvenile community correction officer, has violated the condition of the
juvenile's release. The written statement delivered with the juvenile by the arresting officer
to the official in charge of a juvenile detention facility or other place of detention shall be
sufficient warrant for the detention of the juvenile.'';

On page 9, by striking all in lines 40 through 42;

On page 14, following line 29, by inserting ``(10) The juvenile has been arrested by any
court services officer or juvenile community correction officer pursuant to subsection (b)
of K.S.A. 38-1624 and amendments thereto.''; in line 30, by striking all following ``(b)''; by
striking all in lines 31 through 34; in line 35, by striking ``(c)''; in line 37, by reinserting the
stricken ``(c)'' and striking ``(d)'';

On page 15, in line 2, following ``appropriate'', by inserting ``based on the juvenile justice
programs in the community''; in line 7, following ``orders'', by inserting ``based on the ju-
venile justice programs in the community''; in line 10, following ``facility'', by inserting ``or,
in the case of a chronic runaway youth, place the youth in a secure facility''; in line 37, by
striking all after ``cility''; by striking all in lines 38 through 43;

On page 16, by striking in lines 1 through 7, and inserting ``as provided by the placement
matrix established in K.S.A. 1998 Supp. 38-16,129, and amendments thereto.'';

On page 20, by striking all in lines 41 through 43;

On page 21, by striking all in lines 1 through 32, and inserting new material to read as
follows:

``Sec. 9. K.S.A. 1998 Supp. 38-1664 is hereby amended to read as follows: 38-1664. (a)
Prior to placing a juvenile offender in the custody of the commissioner and recommending
out-of-home placement, the court shall consider and determine that, where consistent with
the need for protection of the community:

(1) Reasonable efforts have been made to prevent or eliminate the need for out-of-
home placement or reasonable efforts are not possible due to an emergency threatening the
safety of the juvenile offender or the community; and

(2) out-of-home placement is in the best interests of the juvenile offender.

(b) When a juvenile offender has been placed in the custody of the commissioner, the
commissioner shall notify the court in writing of the initial placement of the juvenile offender
as soon as the placement has been accomplished. The court shall have no power to direct
a specific placement by the commissioner, but may make recommendations to the com-
missioner. The commissioner may place the juvenile offender in an institution operated by
the commissioner, a youth residential facility or a community mental health center. If the
court has recommended an out-of-home placement, the commissioner may not return the
juvenile offender to the home from which removed without first notifying the court of the
plan.

(c) During the time a juvenile offender remains in the custody of the commissioner,
the commissioner shall report to the court at least each six months as to the current living
arrangement and social and mental development of the juvenile offender.

(d) If the juvenile offender is placed outside the juvenile offender's home, a permanency
hearing shall be held not more than 18 12 months after the juvenile offender is placed
outside the juvenile offender's home and, if reintegration is a viable alternative, every 12
months thereafter. The court may appoint a guardian ad litem to represent the juvenile
offender at the permanency hearing. Juvenile offenders who have been in extended out of
home placement shall be provided a permanency hearing within 30 days of a request from
the commissioner. If reintegration is not a viable alternative and either adoption or per-
manent guardianship might be in the best interests of the juvenile offender the county or
district attorney shall file a petition alleging the juvenile is a child in need of care and
requesting termination of parental rights or the appointment of a permanent guardian pur-
suant to the Kansas code for care of children. If the juvenile offender is placed in foster
care, the foster parent or parents shall submit to the court, at least every six months, a report
in regard to the juvenile offender's adjustment, progress and condition. The juvenile justice
authority shall notify the foster parent or parents of the foster parents' or parent's duty to
submit such report, on a form provided by the juvenile justice authority, at least two weeks
prior to the date when the report is due, and the name of the judge and the address of the
court to which the report is to be submitted. Such report shall be confidential and shall only
be reviewed by the court and the child's attorney.

~~(d)~~ (e) The report made by foster parents and provided by the commissioner of juvenile
justice, pursuant to this section, shall be in substantially the following form:

REPORT FROM FOSTER PARENTS CONFIDENTIAL


Child's Name	Current Address

Parent's Name	Foster Parents
Primary Social Worker

Please circle the word which best describes the child's progress

1. Child's adjustment in the home

excellent         good         satisfactory         needs improvement
2. Child's interaction with foster parents and family members

excellent         good         satisfactory         needs improvement
3. Child's interaction with others

excellent         good         satisfactory         needs improvement
4. Child's respect for property

excellent         good         satisfactory         needs improvement
5. Physical and emotional condition of the child

excellent         good         satisfactory         needs improvement
6. Social worker's interaction with the child and foster family

excellent         good         satisfactory         needs improvement
7. School status of child:

School	Grade
Grades	Good	Fair	Poor
Attendance	Good	Fair	Poor
Behavior	Good	Fair	Poor

8. If visitation with parents has occurred, describe the frequency of visits, with whom,
supervised or unsupervised, and any significant events which have occurred.

9. Your opinion regarding the overall adjustment, progress and condition of the child:

10. Do you have any special concerns or comments with regard to the child not addressed
by this form? Please specify.

Sec. 10. K.S.A. 1998 Supp. 38-1673 is hereby amended to read as follows: 38-1673. (a)
When a juvenile offender has satisfactorily completed such offender's term of incarceration
at the juvenile correctional facility to which the juvenile offender was committed or placed,
the person in charge of the juvenile correctional facility shall have authority to release the
juvenile offender under appropriate conditions and for a specified period of time. Prior to
release from a juvenile correctional facility, the commissioner shall consider any recommen-
dations made by the juvenile offender's juvenile community corrections officer.

(b) At least 15 days prior to releasing a juvenile offender as provided in subsection (a),
the person in charge of the juvenile correctional facility shall notify the committing court
of the date and conditions upon which it is proposed the juvenile offender is to be released.

(c) Upon receipt of the notice required by subsection (b), the court shall review the
proposed conditions of release and may recommend modifications or additions to the con-
ditions.

(d) If, during the conditional release, the juvenile offender is not returning to the county
from which committed, the person in charge of the juvenile correctional facility shall also
give notice to the court of the county in which the juvenile offender is to be residing.

(e) To assure compliance with conditions of release from a juvenile correctional facility,
the commissioner shall have the authority to prescribe the manner in which compliance
with the conditions shall be supervised. When requested by the commissioner, the appro-
priate court may assist in supervising compliance with the conditions of release during the
term of the conditional release. The commissioner may require the parents or guardians of
the juvenile offender to cooperate and participate with the conditions of release.

(f) The juvenile justice authority shall notify at least 45 days prior to the discharge of
the juvenile offender the county or district attorney of the county where the offender was
adjudicated a juvenile offender of the release of such juvenile offender, if such juvenile
offender's offense would have constituted a class A, B or C felony before July 1, 1993, or
an off-grid felony, a nondrug crime ranked at severity level 1, 2, 3, 4 or 5 or a drug crime
ranked at severity level 1, 2 or 3, on or after July 1, 1993, if committed by an adult. The
county or district attorney shall give written notice at least 30 days prior to the release of
the juvenile offender to: (1) Any victim of the juvenile offender's crime who is alive and
whose address is known to the court or, if the victim is deceased, to the victim's family if
the family's address is known to the court; (2) the local law enforcement agency; and (3)
the school district in which the juvenile offender will be residing if the juvenile is still
required to attend a secondary school. Failure to notify pursuant to this section shall not be
a reason to postpone a release. Nothing in this section shall create a cause of action against
the state or county or an employee of the state or county acting within the scope of the
employee's employment as a result of the failure to notify pursuant to this section.

(g) Conditional release programs shall include, but not be limited to, the treatment
options of aftercare services.

Sec. 11. K.S.A. 1998 Supp. 38-1681 is hereby amended to read as follows: 38-1681. (a)
Order authorizing prosecution as an adult or extended jurisdiction juvenile prosecution. (1)
Unless the respondent has consented to the order, an appeal may be taken by a respondent
from an order authorizing prosecution as an adult. The appeal shall be taken only after
conviction and in the same manner as other criminal appeals, except that (A) where the
criminal prosecution has resulted in a judgment of conviction upon a plea of guilty or nolo
contendere, an appeal may be taken from the order authorizing prosecution pursuant to
K.S.A. 38-1636, and amendments thereto, notwithstanding the provisions of subsection (a)
of K.S.A. 22-3602 and amendments thereto, and (B) if the criminal prosecution results in
an acquittal, an appeal may nevertheless be taken from the order authorizing prosecution
pursuant to K.S.A. 38-1636, and amendments thereto, if the order provides that it attaches
to future acts by the respondent as authorized by subsection (h) of K.S.A. 38-1636, and
amendments thereto.

(2) If on appeal the order authorizing prosecution as an adult is reversed but the finding
of guilty is affirmed or the conviction was based on a plea of guilty or nolo contendere, the
respondent shall be deemed adjudicated to be a juvenile offender. On remand the district
court shall proceed with sentencing.

(b) Orders of adjudgment and sentencing. An appeal may be taken by a respondent from
an order of such respondent being adjudged to be a juvenile offender or sentencing, or
both. The appeal shall be taken after, but within 10 days of, the entry of the sentence.

(c) A departure sentence is subject to appeal by the defendant. The appeal shall be to
the appellate courts in accordance with rules adopted by the supreme court.

(1) Pending review of the sentence, the sentencing court or the appellate court may order
the defendant confined or placed on conditional release, including bond.

(2) On appeal from a judgment or conviction entered for an offense committed on or
after July 1, 1999, the appellate court shall not review:

(A) Any sentence that is within the presumptive sentence for the crime; or

(B) any sentence resulting from an agreement between the state and the defendant which
the sentencing court approves on the record.

(3) In any appeal from a judgment of conviction imposing a sentence that departs from
the presumptive sentence, sentence review shall be limited to whether the sentencing court's
findings of fact and reasons justifying a departure:

(A) Are supported by the evidence in the record; and

(B) constitute substantial and compelling reasons for departure.

(4) In any appeal, the appellate court may review a claim that:

(A) A sentence that departs from the presumptive sentence resulted from partiality,
prejudice, oppression or corrupt motive;

(B) the sentencing court erred in either including or excluding recognition of prior con-
victions or adjudications; or

(C) the sentencing court erred in ranking the crime severity level of the current crime
or in determining the appropriate classification of a prior conviction or juvenile adjudication
for criminal history purposes.

(5) The appellate court may reverse or affirm the sentence. If the appellate court con-
cludes that the trial court's factual findings are not supported by evidence in the record or
do not establish substantial and compelling reasons for a departure, it shall remand the case
to the trial court for resentencing.

(6) The appellate court shall issue a written opinion whenever the judgment of the sen-
tencing court is reversed. The court may issue a written opinion in any other case when it
is believed that a written opinion will provide guidance to sentencing judges and others in
implementing the placement. The appellate courts may provide by rule for summary dis-
position of cases arising under this section when no substantial question is presented by the
appeal.

(7) A review under summary disposition shall be made solely upon the record that was
before the sentencing court. Written briefs shall not be required unless ordered by the ap-
pellate court and the review and decision shall be made in an expedited manner according
to rules adopted by the supreme court.

~~(c)~~ (d) Priority. Appeals under this section shall have priority over other cases except
those having statutory priority.'';

By renumbering remaining sections accordingly;

Also on page 21, in line 35, by striking ``sentencing'' and inserting ``committing''; also in
line 35, preceding the comma, by inserting ``to a juvenile correctional facility''; also in line
35, by striking ``may'' and inserting ``shall''; in line 38, preceding the period, by inserting ``as
specified in this subsection, unless the judge conducts a departure hearing and finds sub-
stantial and compelling reasons to impose a departure sentence as provided in section 2 and
amendments thereto'';

On page 24, by striking all in lines 29 through 38;

On page 27, in line 25, by striking ``1'' and inserting ``31''; in line 26, following the period,
by inserting new material to read as follows:

``Sec. 14. K.S.A. 75-7007 is hereby amended to read as follows: 75-7007. (a) There is
hereby established the Kansas advisory group on juvenile justice and delinquency preven-
tion, for the purposes of the federal juvenile justice and delinquency prevention act of 1974,
as amended.

(b) The membership of the Kansas advisory group on juvenile justice and delinquency
prevention shall ~~include the members of the Kansas youth authority, as appointed pursuant~~
~~to K.S.A. 75-7009, and amendments thereto, and other~~ be composed of members as ap-
pointed by the governor. The governor shall appoint at least ~~eight~~ 20 but not more than 26
~~additional~~ 33 members to the advisory group. The ~~additional~~ members shall serve at the
pleasure of the governor. One-third of the members shall be appointed to four-year terms;
one-third of the members shall be appointed to three-year terms; and one-third of the mem-
bers shall be appointed to two-year terms. Thereafter, all members shall serve four-year
terms.

(c) The chairperson and vice-chairperson of the advisory group shall be appointed by
the governor.

(d) Each member of the advisory group shall receive compensation, subsistence allow-
ances, mileage and other expenses as provided for in K.S.A. 75-3223, and amendments
thereto.

(e) The advisory group shall participate in the development and review of the juvenile
justice plan, review and comment on all juvenile justice and delinquency prevention grant
applications, and shall make recommendations regarding the grant applications.

(f) ~~All ex officio members of the Kansas youth authority shall also serve as ex officio~~
~~members to the advisory group.~~

~~(g)~~ The advisory group shall receive reports from local citizen review boards established
pursuant to K.S.A. 38-1812, and amendments thereto, regarding the status of juvenile of-
fenders under the supervision of the district courts.

Sec. 15. K.S.A. 75-7021 is hereby amended to read as follows: 75-7021. (a) There is
hereby created in the state treasury the Kansas endowment for youth trust fund. Money
credited to the fund pursuant to K.S.A. 20-367, and amendments thereto, or by any other
lawful means shall be used solely for the purpose of making grants to further the purpose
of juvenile justice reform, including rational prevention programs and programs for treat-
ment and rehabilitation of juveniles and to further the partnership between state and local
communities. Such treatment and rehabilitation programs should aim to combine account-
ability and sanctions with increasingly intensive treatment and rehabilitation services with
an aim to provide greater public safety and provide intervention that will be uniform and
consistent.

(b) All expenditures from the Kansas endowment for youth trust fund shall be made in
accordance with appropriations acts upon warrants of the director of accounts and reports
issued pursuant to vouchers approved by the commissioner of juvenile justice or by a person
or persons designated by the commissioner.

(c) The commissioner of juvenile justice may apply for, receive and accept money from
any source for the purposes for which money in the Kansas endowment for youth trust fund
may be expended. Upon receipt of any such money, the commissioner shall remit the entire
amount at least monthly to the state treasurer, who shall deposit it in the state treasury and
credit it to the Kansas endowment for youth trust fund.

(d) Grants made to programs pursuant to this section shall be based on the number of
persons to be served and such other requirements as may be established by the Kansas
~~youth authority~~ advisory group on juvenile justice and delinquency prevention in guidelines
established and promulgated to regulate grants made under authority of this section. The
guidelines may include requirements for grant applications, organizational characteristics,
reporting and auditing criteria and such other standards for eligibility and accountability as
are deemed advisable by the Kansas ~~youth authority~~ advisory group on juvenile justice and
delinquency prevention.

(e) On or before the 10th of each month, the director of accounts and reports shall
transfer from the state general fund to the Kansas endowment for youth trust fund interest
earnings based on:

(1) The average daily balance of moneys in the Kansas endowment for youth trust fund
for the preceding month; and

(2) the net earnings rate of the pooled money investment portfolio for the preceding
month.'';

By renumbering remaining sections accordingly;

On page 30, following line 1, by inserting new material to read as follows:

``Sec. 17. K.S.A. 1998 Supp. 75-7024 is hereby amended to read as follows: 75-7024.
~~On and after July 1, 1997,~~ In addition to other powers and duties provided by law, in
administering the provisions of the juvenile justice code, the commissioner of juvenile justice
shall:

(a) Establish divisions which include the following functions in the juvenile justice au-
thority:

(1) Operations. The commissioner shall operate the juvenile intake and assessment sys-
tem as it relates to the juvenile offender; provide technical assistance and help facilitate
community collaboration; license juvenile correctional facilities, programs and providers;
assist in coordinating a statewide system of community based service providers; establish
pilot projects for community based service providers; and operate the juvenile correctional
facilities.

(2) Research and prevention. The commissioner shall generate, analyze and utilize data
to review existing programs and identify effective prevention programs; to develop new
program initiatives and restructure existing programs; and to assist communities in risk
assessment and effective resource utilization.

(3) Contracts. The commissioner shall secure the services of direct providers by con-
tracting with such providers, which may include nonprofit, private or public agencies, to
provide functions and services needed to operate the juvenile justice authority. The com-
missioner shall contract with local service providers, when available, to provide twenty-four-
hour-a-day intake and assessment services. Nothing provided for herein shall prohibit local
municipalities, through interlocal agreements, from corroborating with and participating in
the intake and assessment services established in K.S.A. 75-7023, and amendments thereto.
All contracts entered into by the commissioner to secure the services of direct providers
shall contain a clause allowing the inspector general unlimited access to such facility, records
or personnel pursuant to subsection (a)(4)(B).

(4) Performance audit. (A) The commissioner randomly shall audit contracts to deter-
mine that service providers are performing as required pursuant to the contract.

(B) Within the division conducting performance audits, the commissioner shall desig-
nate a staff person to serve in the capacity of inspector general. Such inspector general, or
such inspector general's designee, shall have the authority to: (i) Enforce compliance with
all contracts; (ii) perform audits as necessary to ensure compliance with the contracts. The
inspector general shall have unlimited access to any and all facilities, records or personnel
of any provider that has contracted with the commissioner to determine that such provider
is in compliance with the contracts; and (iii) establish a statewide juvenile justice hotline to
respond to any complaints or concerns that have been received concerning juvenile justice.

(b) Adopt rules and regulations necessary for the administration of this act.

(c) Administer all state and federal funds appropriated to the juvenile justice authority
and may coordinate with any other agency within the executive branch expending funds
appropriated for juvenile justice.

(d) Administer the development and implementation of a juvenile justice information
system.

(e) Administer the transition to and implementation of juvenile justice system reforms.

(f) Coordinate with the judicial branch of state government any duties and functions
which effect the juvenile justice authority.

(g) Serve as a resource to the legislature and other state policymakers.

(h) Make and enter into all contracts and agreements and do all other acts and things
necessary or incidental to the performance of functions and duties and the execution of
powers under this act. The commissioner may enter into memorandums of agreement or
contractual relationships with state agencies, other governmental entities or private provid-
ers as necessary to carry out the commissioner's responsibilities pursuant to the Kansas
juvenile justice code.

(i) Accept custody of juvenile offenders so placed by the court.

(j) Assign juvenile offenders placed in the commissioner's custody to juvenile correc-
tional facilities based on information collected by the reception and diagnostic evaluation,
intake and assessment report, pursuant to K.S.A. 75-7023, and amendments thereto, and
the predispositional investigation report, pursuant to K.S.A. 38-1661, and amendments
thereto.

(k) Establish and utilize a reception and diagnostic evaluation for all juvenile offenders
to be evaluated prior to placement in a juvenile correctional facility.

(l) Assist the judicial districts in establishing community based placement options, ju-
venile community correctional services and aftercare transition services for juvenile offend-
ers.

(m) Review, evaluate and restructure the programmatic mission and goals of the juvenile
correctional facilities to accommodate greater specialization for each facility.

(n) Adopt rules and regulations as are necessary to encourage the sharing of information
between individuals and agencies who are involved with the juvenile.

(o) ~~Provide staff support to the Kansas youth authority.~~

~~(p)~~ Designate in each judicial district an entity which shall be responsible for juvenile
justice field services not provided by court services officers in the judicial district. The
commissioner shall contract with such entity and provide grants to fund such field services.

~~(q)~~ (p) Monitor placement trends and minority confinement.

~~(r)~~ (q) Develop and submit to the joint committee on corrections and juvenile justice
oversight a recommendation to provide for the financial viability of the Kansas juvenile
justice system. Such recommendation shall include a formula for the allocation of state funds
to community programs and a rationale in support of the recommendation. ~~Additionally,~~
~~the commissioner shall submit a recommendation, approved by the Kansas youth authority,~~
~~detailing capital projects and expenditures projected during the five-year period beginning~~
~~July 1, 1997, including a rationale in support of such recommendation. In developing such~~
~~recommendations,~~ The commissioner shall avoid pursuing construction or expansion of state
institutional capacity when appropriate alternatives to such placements are justified. The
commissioner's recommendations shall identify a revenue source sufficient to appropriately
fund expenditures anticipated to be incurred subsequent to expansion of community-based
capacity and necessary to finance recommended capital projects.

~~(s)~~ (r) Report monthly to the joint committee on corrections and juvenile justice over-
sight. The commissioner shall review with the committee any contracts or memorandums
of agreement with other state agencies prior to the termination of such agreements or
contracts.

~~(t)~~ (s) Have the authority to designate all or a portion of a facility for juveniles under
the commissioner's jurisdiction as a:

(1) Nonsecure detention facility;

(2) facility for the educational or vocational training and related services;

(3) facility for temporary placement pending other arrangements more appropriate for
the juvenile's needs; and

(4) facility for the provision of care and other services and not for the detention of
juveniles.

Sec. 18. K.S.A. 75-7032 is hereby amended to read as follows: 75-7032. The juvenile
justice authority, ~~pursuant to~~ provided for in K.S.A. 75-7001, and amendments thereto, ~~and~~
~~the Kansas youth authority, pursuant to K.S.A. 75-7008, and amendments thereto,~~ shall be
and ~~are~~ is hereby abolished on July 1, 2004.

Sec. 19. K.S.A. 76-172 is hereby amended to read as follows: 76-172. As used in this
act unless the context otherwise requires, ''institution`` means the institutions within the
department of social and rehabilitation services, the institutions within the department of
corrections, the institution within the department of human resources, the institutions within
the juvenile justice authority, the Kansas state school for blind and the Kansas state school
for the deaf.

Sec. 20. K.S.A. 79-4803 is hereby amended to read as follows: 79-4803. (a) (1) An
amount equal to 10% of all moneys credited to the state gaming revenues fund shall be
transferred and credited to the correctional institutions building fund created pursuant to
K.S.A. 76-6b09 and amendments thereto, to be appropriated by the legislature for the use
and benefit of state correctional institutions as provided in K.S.A. 76-6b09 and amendments
thereto; and

(2) an amount equal to 5% of all moneys credited to the state gaming revenues fund
shall be transferred and credited to the juvenile detention facilities fund.

(b) There is hereby created in the state treasury the juvenile detention facilities fund
which shall be administered by the commissioner of juvenile justice ~~as approved by the~~. The
Kansas advisory group on juvenile justice and delinquency prevention shall review and make
recommendations concerning the administration of the fund. All expenditures from the ju-
venile detention facilities fund shall be for the retirement of debt of facilities for the deten-
tion of juveniles; or for the construction, renovation, remodeling or operational costs of
facilities for the detention of juveniles in accordance with a grant program which shall be
established with grant criteria designed to facilitate the expeditious award and payment of
grants for the purposes for which the moneys are intended. ''Operational costs`` shall not
be limited to any per capita reimbursement by the commissioner of juvenile justice for
juveniles under the supervision and custody of the commissioner but shall include payments
to counties as and for their costs of operating the facility. The commissioner of juvenile
justice shall make grants of the moneys credited to the juvenile detention facilities fund for
such purposes to counties in accordance with such grant program. All expenditures from
the juvenile detention facilities 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 commissioner of juvenile justice or the commissioner's designee.'';

By renumbering the remaining sections accordingly;

Also on page 30, in line 2, preceding ``75-7023'', by inserting ``38-1542, 75-7007, 75-7008,
75-7009, 75-7021,''; also in line 2, preceding ``and'', by inserting ``75-7032, 76-172 and 79-
4803''; also in line 2, by striking ``21-4603d''; in line 3, preceding ``, 38-1604,'', by inserting
``38-1502, 38-1502, as amended by section 42 of 1999 House Bill No. 2191, 38-1502c, 38-
1528, 38-1543, 38-1562, 38-1565, 38-1583, 38-1602, 38-1602a''; in line 4, by striking ``38-'';
in line 5, by striking ``1675,'' and inserting ``38-1664, 38-1673, 38-1681,''; also in line 5, by
striking ``and 48-2801'' and inserting ``, 46-2801 and 75-7024'';

In the title, in line 12, by striking all following ``concerning''; by striking all in lines 13
and 14; in line 15, by striking all preceding the semicolon, and inserting ``children and
juveniles''; also in line 15, following ``K.S.A.'', by inserting ``38-1542, 75-7007, 75-7021''; in
line 16, following ``7023'', by inserting ``, 75-7032, 76-172 and 79-4803''; also in line 16, by
striking ``21-4603d'' and inserting ``38-1502, 38-1528, 38-1543, 38-1562, 38-1565, 38-1583,
38-1602''; in line 18, following ``Kansas,'', by inserting ``38-1664, 38-1673,''; also in line 18,
by striking ``38-1675'', and inserting ``38-1681''; also in line 18, by striking ``and'' and inserting
a comma; in line 19, following ``2801'', by inserting ``and 75-7024''; also in line 19, preceding
the period, by inserting ``; also repealing K.S.A. 75-7008 and

75-7009 and K.S.A. 1998 Supp. 38-1502, as amended by section 42 of 1999 House Bill No.
2191, 38-1502c and 38-1602a'';

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

Tim Emert

Lana Oleen

Greta Goodwin
Conferees on the part of Senate

Michael R. O'Neal

Tim Carmody

Janice L. Pauls
Conferees on part of House

Senator Oleen moved the Senate adopt the Conference Committee Report on HB 2092.

On roll call, the vote was: Yeas 38, nays 1, 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, Jor-
dan, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Praeger, Ranson, Salisbury,
Salmans, Steffes, Steineger, Stephens, Tyson, Umbarger, Vidricksen, Vratil.

Nays: Pugh.

Absent or not voting: Hardenburger.

The Conference Committee report was adopted.

CHANGE OF CONFERENCE
The President announced the appointment of Senator Vratil as a member of the Confer-
ence Committee on SB 149 to replace Senator Oleen.

REPORT ON ENGROSSED BILLS
SB 171 reported correctly re-engrossed May 2, 1999.

REPORT ON ENROLLED BILLS
SR 1864, 1865, 1866 reported correctly enrolled, properly signed and presented to the
Secretary of the Senate on May 2, 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 HB 2034.

FINAL ACTION ON BILLS AND CONCURRENT RESOLUTIONS

On motion of Senator Emert an emergency was declared by a 2/3 constitutional majority,
and HB 2034 was advanced to Final Action, subject to amendment, debate and roll call.

HB 2034, An act concerning public officers and employees; relating to compensation for
overtime work; prescribing certain rates and procedures; cost-of-living adjustments and em-
ployer contribution rates under the Kansas public employees retirement system and systems
thereunder; relating to reimbursement of moving expenses for certain state officers and
employees; amending K.S.A. 20-2605, 75-5537 and 76K.S.A. 1998 Supp. 74-4920 and 74-
4967 and repealing the existing sections, was considered on final action.

The bill was amended by adoption of the committee amendments.

The bill was further amended by motion of Senator Praeger on page 9, following line 23,
by inserting the following:

``Sec. 5. K.S.A. 76-727 is hereby amended to read as follows: 76-727. (a) The chief
executive officer of any state educational institution, when approved by the state board of
regents, may extend an invitation to any person to meet with representatives of such state
educational institution for the purpose of consultation preliminary to such person's possible
selection as a member of the unclassified staff at such state educational institution, and in
such case, such state educational institution may pay the actual and necessary travel and
subsistence expenses of such invitee in meeting with such representatives. The state board
of regents may extend an invitation to any person to meet with the state board of regents
or with representatives of such board for the purpose of consultation preliminary to such
person's possible selection as chief executive officer of a state educational institution under
the control and supervision of the state board of regents or as executive officer of the state
board of regents, and in such case, the state board of regents may pay the actual and
necessary travel and subsistence expenses of such invitee and such invitee's spouse in meet-
ing with the board or with such representatives. The travel and subsistence expenses shall
be paid from funds available or appropriated for travel and subsistence. Any reimbursement
of an invitee's travel and subsistence expenses paid by a state educational institution pursuant
to this subsection shall constitute compensation for the invitee.

(b) (1) Subject to the limitations of rules and regulations adopted by the secretary of
administration, the state board of regents may agree to reimburse an applicant for the
position of chief executive officer of a state educational institution or an applicant for any
position in the office of the state board of regents for all or part of the applicant's moving
expenses from the applicant's usual place of residence to the applicant's new place of resi-
dence as an inducement to the applicant to accept such position of employment.

(2) The amount to be paid for moving expenses shall not exceed the amount of the
actual moving expenses verified by receipts or the amount of moving expenses for moving
12,000 pounds of household goods, whichever is the lesser amount. The applicant shall be
required to sign an agreement that if the applicant leaves the position of employment within
one year from the beginning date of employment, the applicant will reimburse the state
board of regents the full amount so paid for moving expenses, and the obligation to repay
shall constitute a lien and setoff by the state against the applicant employee's unpaid wages
or salary. The moving expenses shall be paid from funds available or appropriated for moving
expenses.

(3) Reimbursement for moving expenses may be made to applicants for positions in the
unclassified service under the Kansas civil service act at state educational institutions other
than chief executive officers in accordance with this section if such reimbursement is from
private funds provided to the state educational institutions by the endowment associations
or other affiliated corporations of such state educational institutions. Any reimbursement of
moving expenses made to any applicant pursuant to this subsection shall constitute compen-
sation for the applicant.

(c) The provisions of K.S.A. 75-3218, and amendments thereto, and subsection (a) of
K.S.A. 75-3225, shall not apply to state educational institutions.

(d) The chief executive officer of any state educational institution, or any person or
persons designated by such officer for the purpose, with the approval of the state board of
regents, may travel to any place or places in the United States for the purpose of interviewing
persons as prospective members of the faculty of such state educational institution, and in
such case, such state educational institution shall pay the transportation and subsistence
expenses of persons making such trips. The travel and subsistence shall be paid at the same
rates and subject to the same limitations as now provided for state employees for out-of-
state travel. The travel and subsistence shall be paid from funds available or appropriated
for travel and subsistence.'';

And by renumbering sections accordingly;

Also on page 9, in line 24, after ``20-2605'', by striking ``and'' and inserting a comma; also
in line 24, after ``75-5537'', by inserting ``and 76-727'';

On page 1, in the title, in line 16, before ``amending'', by inserting ``relating to reimburse-
ment of moving expenses for certain state officers and employees;''; also in line 16, after
``20-2605'', by striking ``and'' and inserting a comma; also in line 16, after ``75-5537'', by
inserting ``and 76-727''.

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, Jor-
dan, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Praeger, Pugh, Ranson, Sal-
isbury, Salmans, Steffes, Steineger, Stephens, Tyson, Umbarger, Vidricksen, Vratil.

Absent or not voting: Hardenburger.

The bill passed, as amended.

ORIGINAL MOTION
On motion of Senator Kerr, the Senate acceded to the request of the House for a con-
ference on HB 2575.

The President appointed Senators Kerr, Lawrence and Hensley as conferees on the part
of the Senate.

MESSAGE FROM THE HOUSE
Announcing the House adopts the conference committee report on HB 2092.

The House adopts the conference committee report on SB 102.

The House adopts the conference committee report on SB 149.

The House nonconcurs in Senate amendments to HB 2034, requests a conference and
has appointed Representatives Wilk, Horst and Sharp as conferees on the part of the House.

ORIGINAL MOTION
Senator Emert moved that subsection 4(k) of the Joint Rules of the Senate and House
of Representatives be suspended for the purpose of considering the following bills: SB 102,
149; HB 2489.

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 102, submits the following report:

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

On page 4, by striking all in lines 26 through 43;

By striking all on page 5;

On page 6, by striking all in lines 1 through 7; also on page 6, in line 8, after ``75-5288''
by striking ``and''; in line 9, by striking ``K.S.A 1998 Supp. 75-6801'';

And by renumbering sections accordingly;

On page 1, in the title, in line 11, by striking all after the semicolon; by striking line 12;
in line 13, by striking ``ments;''; in line 14, by striking everything before the second ``and'';

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

Phill Kline

Melvin Neufeld

Ed McKechnie
Conferees on the part of Senate

Dave Kerr

Alicia L. Salisbury

Marge Petty
Conferees on part of House

Senator Kerr moved the Senate adopt the Conference Committee Report on SB 102.

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, Jor-
dan, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Praeger, Pugh, Ranson, Sal-
isbury, Salmans, Steffes, Steineger, Stephens, Tyson, Umbarger, Vidricksen, Vratil.

Absent or not voting: Hardenburger.

The Conference Committee report was adopted.

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 149, submits the following report:

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

On page 1, after line 22, by inserting the following:

``Section 1. K.S.A. 1998 Supp. 8-262 is hereby amended to read as follows: 8-262. (a)
(1) Any person who drives a motor vehicle on any highway of this state at a time when such
person's privilege so to do is canceled, suspended or revoked shall be guilty of a: (A) Class
B nonperson misdemeanor on the first conviction; and (B) class A nonperson misdemeanor
on the second conviction~~; and (C) severity level 9, nonperson felony on a third~~ or subsequent
conviction.

(2) No person shall be convicted under this section if such person was entitled at the
time of arrest under K.S.A. 8-257, and amendments thereto, to the return of such person's
driver's license or was, at the time of arrest, eligible under K.S.A. 8-256, and amendments
thereto, to apply for a new license to operate a motor vehicle.

(3) Except as otherwise provided by subsection (a)(4), every person convicted under
this section shall be sentenced to at least five days' imprisonment and fined at least $100
and upon a second or subsequent conviction shall not be eligible for parole until completion
of five days' imprisonment.

(4) If a person (A) is convicted of a violation of this section, committed while the person's
privilege to drive was suspended or revoked for a violation of K.S.A. 8-1567, and amend-
ments thereto, or any ordinance of any city or a law of another state, which ordinance or
law prohibits the acts prohibited by that statute, and (B) is or has been also convicted of a
violation of K.S.A. 8-1567, and amendments thereto, or of a municipal ordinance or law of
another state, which ordinance or law prohibits the acts prohibited by that statute, com-
mitted while the person's privilege to drive was so suspended or revoked, the person shall
not be eligible for suspension of sentence, probation or parole until the person has served
at least 90 days' imprisonment, and any fine imposed on such person shall be in addition to
such a term of imprisonment.

(b) The division, upon receiving a record of the conviction of any person under this
section, or any ordinance of any city or a law of another state which is in substantial con-
formity with this section, upon a charge of driving a vehicle while the license of such person
is revoked or suspended, shall extend the period of such suspension or revocation for an
additional period of 90 days.

(c) In addition to extension of the period of suspension or revocation under subsection
(b), if the conviction is for a violation committed after June 30, 1994, and before July 1,
1996, and committed while the person's driving privileges are suspended pursuant to K.S.A.
8-1014 and amendments thereto, the division, upon completion of the extended period of
suspension, shall restrict the person's driving privileges for an additional 120 days to driving
only a motor vehicle equipped with an ignition interlock device, as defined by K.S.A. 8-
1013 and amendments thereto, approved by the division and obtained, installed and main-
tained at the person's expense.

On or before February 1, 1996, the division shall report to the legislature regarding the
use of the provisions of this subsection and making recommendations concerning continu-
ation or modification of such provisions.

(d) For the purposes of determining whether a conviction is a first, second~~, third~~ or
subsequent conviction in sentencing under this section, ''conviction`` includes a conviction
of a violation of any ordinance of any city or a law of another state which is in substantial
conformity with this section.

Sec. 2. K.S.A. 1998 Supp. 8-287 is hereby amended to read as follows: 8-287. Operation
of a motor vehicle in this state while one's driving privileges are revoked pursuant to K.S.A.
8-286 and amendments thereto is a ~~severity level 9, nonperson felony~~ class A nonperson
misdemeanor.

Sec. 3. K.S.A. 1998 Supp. 21-2511 is hereby amended to read as follows: 21-2511. (a)
Any person convicted as an adult or adjudicated as a juvenile offender because of the
commission of ~~an unlawful sexual act as defined in subsection (4) of K.S.A. 21-3501, and~~
~~amendments thereto, or convicted as an adult or adjudicated as a juvenile offender because~~
~~of the commission of a violation of K.S.A. 21-3401, 21-3402, 21-3510, 21-3511, 21-3516,~~
~~21-3602, 21-3603 or 21-3609, and amendments thereto, including an attempt, as defined in~~
~~K.S.A. 21-3301, and amendments thereto, conspiracy, as defined in K.S.A. 21-3302, and~~
~~amendments thereto, or criminal solicitation, as defined in K.S.A. 21-3303, and amendments~~
~~thereto,~~ any offense which requires such person to register as an offender pursuant to the
Kansas offender registration act, K.S.A. 22-4901 et seq., or a violation of subsection (a)(1)
of K.S.A. 21-3505, 21-3508, 21-3602 or 21-3609 and amendments thereto, including an
attempt, conspiracy or criminal solicitation, as defined in K.S.A. 21-3301, 21-3302 or 21-
3303 and amendments thereto, of any such offenses provided in this subsection regardless
of the sentence imposed, shall be required to submit specimens of blood and saliva to the
Kansas bureau of investigation in accordance with the provisions of this act, if such person
is:

(1) Convicted as an adult or adjudicated as a juvenile offender because of the commis-
sion of a crime specified in subsection (a) on or after the effective date of this act;

(2) ordered institutionalized as a result of being convicted as an adult or adjudicated as
a juvenile offender because of the commission of a crime specified in subsection (a) on or
after the effective date of this act; or

(3) convicted as an adult or adjudicated as a juvenile offender because of the commission
of a crime specified in this subsection before the effective date of this act and is presently
confined as a result of such conviction or adjudication in any state correctional facility or
county jail or is presently serving a sentence under K.S.A. 21-4603, 22-3717 or 38-1663,
and amendments thereto.

(b) Notwithstanding any other provision of law, the Kansas bureau of investigation is
authorized to obtain fingerprints and other identifiers for all persons, whether juveniles or
adults, covered by this act.

(c) Any person required by paragraphs (a)(1) and (a)(2) to provide specimens of blood
and saliva shall be ordered by the court to have specimens of blood and saliva collected
within 10 days after sentencing or adjudication:

(1) If placed directly on probation, that person must provide specimens of blood and
saliva, at a collection site designated by the Kansas bureau of investigation. Failure to co-
operate with the collection of the specimens and any deliberate act by that person intended
to impede, delay or stop the collection of the specimens shall be punishable as contempt of
court and constitute grounds to revoke probation;

(2) if sentenced to the secretary of corrections, the specimens of blood and saliva will
be obtained immediately upon arrival at the Topeka correctional facility; or

(3) if a juvenile offender is placed in the custody of the commissioner of juvenile justice,
in a youth residential facility or in a juvenile correctional facility, the specimens of blood
and saliva will be obtained immediately upon arrival.

(d) Any person required by paragraph (a)(3) to provide specimens of blood and saliva
shall be required to provide such samples prior to final discharge or conditional release at
a collection site designated by the Kansas bureau of investigation.

(e) The Kansas bureau of investigation shall provide all specimen vials, mailing tubes,
labels and instructions necessary for the collection of blood and saliva samples. The collec-
tion of samples shall be performed in a medically approved manner. No person authorized
by this section to withdraw blood and collect saliva, and no person assisting in the collection
of these samples shall be liable in any civil or criminal action when the act is performed in
a reasonable manner according to generally accepted medical practices. The withdrawal of
blood for purposes of this act may be performed only by: (1) A person licensed to practice
medicine and surgery or a person acting under the supervision of any such licensed person;
(2) a registered nurse or a licensed practical nurse; or (3) any qualified medical technician
including, but not limited to, an emergency medical technician-intermediate or mobile in-
tensive care technician, as those terms are defined in K.S.A. 65-6112, and amendments
thereto, or a phlebotomist. The samples shall thereafter be forwarded to the Kansas bureau
of investigation for analysis and categorizing into genetic marker groupings.

(f) The genetic marker groupings shall be maintained by the Kansas bureau of investi-
gation. The Kansas bureau of investigation shall establish, implement and maintain a state-
wide automated personal identification system capable of, but not limited to, classifying,
matching and storing analysis of DNA (deoxyribonucleic acid) and other biological mole-
cules. The genetic marker grouping analysis information and identification system as estab-
lished by this act shall be compatible with the procedures specified by the federal bureau
of investigation's combined DNA index system (CODIS). The Kansas bureau of investigation
may participate in the CODIS program by sharing data and utilizing compatible test pro-
cedures, laboratory equipment, supplies and computer software.

(g) The genetic marker grouping analysis information obtained pursuant to this act shall
be confidential and shall be released only to law enforcement officers of the United States,
of other states or territories, of the insular possessions of the United States, or foreign
countries duly authorized to receive the same, to all law enforcement officers of the state
of Kansas and to all prosecutor's agencies.

(h) The Kansas bureau of investigation shall be the state central repository for all genetic
marker grouping analysis information obtained pursuant to this act. The Kansas bureau of
investigation may promulgate rules and regulations for the form and manner of the collection
of blood and saliva samples and other procedures for the operation of this act. The provisions
of the Kansas administrative procedure act shall apply to all actions taken under the rules
and regulations so promulgated.

Sec. 4. K.S.A. 1998 Supp. 21-3204 is hereby amended to read as follows: 21-3204. A
person may be guilty of an offense without having criminal intent if the crime is: (1) A
misdemeanor, cigarette or tobacco infraction or traffic infraction and the statute defining
the offense clearly indicates a legislative purpose to impose absolute liability for the conduct
described; or (2) a violation of K.S.A. 8-1567 or 8-1567a and amendments thereto.

Sec. 5. K.S.A. 1998 Supp. 21-3402 is hereby amended to read as follows: 21-3402.
Murder in the second degree is the killing of a human being committed:

(a) Intentionally; or

(b) unintentionally but recklessly under circumstances manifesting extreme indifference
to the value of human life.

Murder in the second degree as described in subsection (a) is ~~an off-grid~~ a severity level
1, person felony. Murder in the second degree as described in subsection (b) is a severity
level 2, person felony.'';

Also on page 1, in line 23, by striking ``Section 1.'' and inserting ``Sec. 6.'';

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

``Sec. 7. K.S.A. 21-3435 is hereby amended to read as follows: 21-3435. (a) It is unlawful
for an individual who knows oneself to be infected with a life threatening communicable
disease knowingly:

(1) To engage in sexual intercourse or sodomy with another individual with the intent
to expose that individual to that life threatening communicable disease;

(2) to sell or donate one's own blood, blood products, semen, tissue, organs or other
body fluids with the intent to expose the recipient to a life threatening communicable dis-
ease;

(3) to share with another individual a hypodermic needle, syringe, or both, for the
introduction of drugs or any other substance into, or for the withdrawal of blood or body
fluids from, the other individual's body with the intent to expose another person to a life
threatening communicable disease.

(b) As used in this section, the term ``sexual intercourse'' shall not include penetration
by any object other than the male sex organ; the term ``sodomy'' shall not include the
penetration of the anal opening by any object other than the male sex organ.

(c) Violation of this section is a ~~class A person misdemeanor~~ severity level 7, person
felony.'';

And by renumbering section 2 as section 8;

On page 3, after line 42, by inserting the following:

``Sec. 9. K.S.A. 21-3705 is hereby amended to read as follows: 21-3705. (a) Criminal
deprivation of property is obtaining or exerting unauthorized control over property, with
intent to deprive the owner of the temporary use thereof, without the owner's consent but
not with the intent of depriving the owner permanently of the possession, use or benefit of
such owner's property.

(b) Criminal deprivation of property that is a motor vehicle, as defined in K.S.A. 8-1437,
and amendments thereto, is a class A nonperson ~~felony~~ misdemeanor. Upon a first conviction
of this subsection, a person shall be sentenced to not less than 30 days nor more than one
year's imprisonment and fined not less than $100. Upon a second or subsequent conviction
of this subsection, a person shall be sentenced to not less than 60 days nor more than one
year's imprisonment and fined not less than $200. The person convicted shall not be eligible
for release on probation, suspension or reduction of sentence or parole until the person has
served the minimum mandatory sentence as provided herein. The mandatory provisions of
this subsection shall not apply to any person where such application would result in a man-
ifest injustice.

(c) Criminal deprivation of property other than a motor vehicle, as defined in K.S.A. 8-
1437, and amendments thereto, is a class A nonperson misdemeanor. Upon a second or
subsequent conviction of this subsection, a person shall be sentenced to not less than 30
days imprisonment and fined not less than $100, except that the provisions of this subsection
relating to a second or subsequent conviction shall not apply to any person where such
application would result in a manifest injustice.

Sec. 10. K.S.A. 21-3731 is hereby amended to read as follows: 21-3731. (a) Criminal
use of explosives is the possession, manufacture or transportation of commercial explosives;
chemical compounds that form explosives; incendiary or explosive material, liquid or solid;
detonators; blasting caps; military explosive fuse assemblies; squibs; or electric match or
functional improvised fuse assemblies; or any completed explosive devices commonly known
as pipe bombs or molotov cocktails. For purposes of this section, explosives shall not include
class ''c`` fireworks, legally obtained and transferred commercial explosives by licensed in-
dividuals and ammunition and commercially available loading powders and products used
as ammunition.

(b) (1) Criminal use of explosives as defined in subsection (a) is a severity level 8, person
felony.

(2) Criminal use of explosives as defined in subsection (a) if: (A) The possession, man-
ufacture or transportation is intended to be used to commit a crime or is delivered to another
with knowledge that such other intends to use such substance to commit a crime; (B) a
public safety officer is placed at risk to defuse such explosive; or (C) the explosive is intro-
duced into a building in which there is another human being, is a severity level 6, person
felony.'';

And by renumbering section 3 as section 11;

On page 5, after line 3, by inserting the following:

``Sec. 12. K.S.A. 1998 Supp. 21-4201 is hereby amended to read as follows: 21-4201.
(a) Criminal use of weapons is knowingly:

(1) Selling, manufacturing, purchasing, possessing or carrying any bludgeon, sandclub,
metal knuckles or throwing star, or any knife, commonly referred to as a switch-blade, which
has a blade that opens automatically by hand pressure applied to a button, spring or other
device in the handle of the knife, or any knife having a blade that opens or falls or is ejected
into position by the force of gravity or by an outward, downward or centrifugal thrust or
movement;

(2) carrying concealed on one's person, or possessing with intent to use the same un-
lawfully against another, a dagger, dirk, billy, blackjack, slung shot, dangerous knife, straight-
edged razor, stiletto or any other dangerous or deadly weapon or instrument of like char-
acter, except that an ordinary pocket knife with no blade more than four inches in length
shall not be construed to be a dangerous knife, or a dangerous or deadly weapon or instru-
ment;

(3) carrying on one's person or in any land, water or air vehicle, with intent to use the
same unlawfully, a tear gas or smoke bomb or projector or any object containing a noxious
liquid, gas or substance;

(4) carrying any pistol, revolver or other firearm concealed on one's person except when
on the person's land or in the person's abode or fixed place of business;

(5) setting a spring gun;

(6) possessing any device or attachment of any kind designed, used or intended for use
in silencing the report of any firearm;

(7) selling, manufacturing, purchasing, possessing or carrying a shotgun with a barrel
less than 18 inches in length or any other firearm designed to discharge or capable of
discharging automatically more than once by a single function of the trigger; or

(8) possessing, manufacturing, causing to be manufactured, selling, offering for sale,
lending, purchasing or giving away any cartridge which can be fired by a handgun and which
has a plastic-coated bullet that has a core of less than 60% lead by weight~~; or~~

~~(9) possessing or transporting any incendiary or explosive material, liquid, solid or mix-~~
~~ture, equipped with a fuse, wick or any other detonating device, commonly known as a~~
~~molotov cocktail or a pipe bomb~~.

(b) Subsections (a)(1), (2), (3), (4) and (7) shall not apply to or affect any of the following:

(1) Law enforcement officers, or any person summoned by any such officers to assist
in making arrests or preserving the peace while actually engaged in assisting such officer;

(2) wardens, superintendents, directors, security personnel and keepers of prisons, pen-
itentiaries, jails and other institutions for the detention of persons accused or convicted of
crime, while acting within the scope of their authority;

(3) members of the armed services or reserve forces of the United States or the Kansas
national guard while in the performance of their official duty; or

(4) manufacture of, transportation to, or sale of weapons to a person authorized under
subsections (b)(1), (2) and (3) to possess such weapons.

(c) Subsection (a)(4) shall not apply to or affect the following:

(1) Watchmen, while actually engaged in the performance of the duties of their em-
ployment;

(2) licensed hunters or fishermen, while engaged in hunting or fishing;

(3) private detectives licensed by the state to carry the firearm involved, while actually
engaged in the duties of their employment;

(4) detectives or special agents regularly employed by railroad companies or other cor-
porations to perform full-time security or investigative service, while actually engaged in the
duties of their employment;

(5) the state fire marshal, the state fire marshal's deputies or any member of a fire
department authorized to carry a firearm pursuant to K.S.A. 31-157 and amendments
thereto, while engaged in an investigation in which such fire marshal, deputy or member is
authorized to carry a firearm pursuant to K.S.A. 31-157 and amendments thereto; or

(6) special deputy sheriffs described in K.S.A. 1998 Supp. 19-827 who have satisfactorily
completed the basic course of instruction required for permanent appointment as a part-
time law enforcement officer under K.S.A. 74-5607a and amendments thereto.

(d) Subsections (a)(1), (6) and (7) shall not apply to any person who sells, purchases,
possesses or carries a firearm, device or attachment which has been rendered unserviceable
by steel weld in the chamber and marriage weld of the barrel to the receiver and which has
been registered in the national firearms registration and transfer record in compliance with
26 U.S.C. 5841 et seq. in the name of such person and, if such person transfers such firearm,
device or attachment to another person, has been so registered in the transferee's name by
the transferor.

(e) Subsection (a)(8) shall not apply to a governmental laboratory or solid plastic bullets.

(f) It shall be a defense that the defendant is within an exemption.

(g) Violation of subsections (a)(1) through (a)(5) ~~or subsection (a)(9)~~ is a class A non-
person misdemeanor. Violation of subsection (a)(6), (a)(7) or (a)(8) is a severity level 9,
nonperson felony.

(h) As used in this section, ``throwing star'' means any instrument, without handles,
consisting of a metal plate having three or more radiating points with one or more sharp
edges and designed in the shape of a polygon, trefoil, cross, star, diamond or other geometric
shape, manufactured for use as a weapon for throwing.

Sec. 13. K.S.A. 1998 Supp. 21-4603d is hereby amended to read as follows: 21-4603d.
(a) Whenever any person has been found guilty of a crime, the court may adjudge any of
the following:

(1) Commit the defendant to the custody of the secretary of corrections if the current
crime of conviction is a felony and the sentence presumes imprisonment, or the sentence
imposed is a dispositional departure to imprisonment; or, if confinement is for a misde-
meanor, to jail for the term provided by law;

(2) impose the fine applicable to the offense;

(3) release the defendant on probation if the current crime of conviction and criminal
history fall within a presumptive nonprison category or through a departure for substantial
and compelling reasons subject to such conditions as the court may deem appropriate. In
felony cases except for violations of K.S.A. 8-1567 and amendments thereto, the court may
include confinement in a county jail not to exceed 30 days, which need not be served
consecutively, as a condition of probation or community corrections placement;

(4) assign the defendant to a community correctional services program in presumptive
nonprison cases or through a departure for substantial and compelling reasons subject to
such conditions as the court may deem appropriate, including orders requiring full or partial
restitution;

(5) assign the defendant to a conservation camp for a period not to exceed six months
as a condition of probation followed by a six-month period of follow-up through adult in-
tensive supervision by a community correctional services program, if the offender success-
fully completes the conservation camp program~~. If the defendant was classified in grid blocks~~
~~3-G, 3-H or 3-I of the sentencing guidelines grid for drug crimes, the court may impose a~~
~~nonprison sanction on the condition that the offender complete the program at the Labette~~
~~correctional conservation camp or a conservation camp established by the secretary of cor-~~
~~rections pursuant to K.S.A. 75-52,127, and amendments thereto. Such a placement decision~~
~~shall not be considered a departure and shall not be subject to appeal~~;

(6) assign the defendant to a house arrest program pursuant to K.S.A. 21-4603b and
amendments thereto;

(7) order the defendant to attend and satisfactorily complete an alcohol or drug edu-
cation or training program as provided by subsection (3) of K.S.A. 21-4502 and amendments
thereto;

(8) order the defendant to repay the amount of any reward paid by any crime stoppers
chapter, individual, corporation or public entity which materially aided in the apprehension
or conviction of the defendant; repay the amount of any costs and expenses incurred by any
law enforcement agency in the apprehension of the defendant, if one of the current crimes
of conviction of the defendant includes escape, as defined in K.S.A. 21-3809 and amend-
ments thereto or aggravated escape, as defined in K.S.A. 21-3810 and amendments thereto;
or repay the amount of any public funds utilized by a law enforcement agency to purchase
controlled substances from the defendant during the investigation which leads to the de-
fendant's conviction. Such repayment of the amount of any such costs and expenses incurred
by a law enforcement agency or any public funds utilized by a law enforcement agency shall
be deposited and credited to the same fund from which the public funds were credited to
prior to use by the law enforcement agency;

(9) order the defendant to pay the administrative fee authorized by K.S.A. 1998 Supp.
22-4529 and amendments thereto, unless waived by the court;

(10) impose any appropriate combination of (1), (2), (3), (4), (5), (6), (7), (8) and (9);
or

(11) suspend imposition of sentence in misdemeanor cases.

In addition to or in lieu of any of the above, the court shall order the defendant to pay
restitution, which shall include, but not be limited to, damage or loss caused by the de-
fendant's crime, unless the court finds compelling circumstances which would render a plan
of restitution unworkable. If the court finds a plan of restitution unworkable, the court shall
state on the record in detail the reasons therefor.

If the court orders restitution, the restitution shall be a judgment against the defendant
which may be collected by the court by garnishment or other execution as on judgments in
civil cases. If, after 60 days from the date restitution is ordered by the court, a defendant is
found to be in noncompliance with the plan established by the court for payment of resti-
tution, and the victim to whom restitution is ordered paid has not initiated proceedings in
accordance with K.S.A. 60-4301 et seq. and amendments thereto, the court shall assign an
agent procured by the attorney general pursuant to K.S.A. 75-719 and amendments thereto
to collect the restitution on behalf of the victim. The administrative judge of each judicial
district may assign such cases to an appropriate division of the court for the conduct of civil
collection proceedings.

In addition to or in lieu of any of the above, the court shall order the defendant to submit
to and complete an alcohol and drug evaluation, and pay a fee therefor, when required by
subsection (4) of K.S.A. 21-4502 and amendments thereto.

In addition to any of the above, the court shall order the defendant to reimburse the
county general fund for all or a part of the expenditures by the county to provide counsel
and other defense services to the defendant. Any such reimbursement to the county shall
be paid only after any order for restitution has been paid in full. In determining the amount
and method of payment of such sum, the court shall take account of the financial resources
of the defendant and the nature of the burden that payment of such sum will impose. A
defendant who has been required to pay such sum and who is not willfully in default in the
payment thereof may at any time petition the court which sentenced the defendant to waive
payment of such sum or any unpaid portion thereof. If it appears to the satisfaction of the
court that payment of the amount due will impose manifest hardship on the defendant or
the defendant's immediate family, the court may waive payment of all or part of the amount
due or modify the method of payment.

In imposing a fine the court may authorize the payment thereof in installments. In re-
leasing a defendant on probation, the court shall direct that the defendant be under the
supervision of a court services officer. If the court commits the defendant to the custody of
the secretary of corrections or to jail, the court may specify in its order the amount of
restitution to be paid and the person to whom it shall be paid if restitution is later ordered
as a condition of parole or conditional release.

When a new felony is committed while the offender is incarcerated and serving a sentence
for a felony or while the offender is on probation, assignment to a community correctional
services program, parole, conditional release, or postrelease supervision for a felony, a new
sentence shall be imposed pursuant to the consecutive sentencing requirements of K.S.A.
21-4608, and amendments thereto, and the court may sentence the offender to imprison-
ment for the new conviction, even when the new crime of conviction otherwise presumes
a nonprison sentence. In this event, imposition of a prison sentence for the new crime does
not constitute a departure. When a new felony is committed while the offender is on release
for a felony pursuant to the provisions of article 28 of chapter 22 of the Kansas Statutes
Annotated, a new sentence may be imposed pursuant to the consecutive sentencing require-
ments of K.S.A. 21-4608 and amendments thereto, and the court may sentence the offender
to imprisonment for the new conviction, even when the new crime of conviction otherwise
presumes a nonprison sentence. In this event, imposition of a prison sentence for the new
crime does not constitute a departure.

Prior to imposing a dispositional departure for a defendant whose offense is classified in
the presumptive nonprison grid block of either sentencing guideline grid, prior to sentencing
a defendant to incarceration whose offense is classified in grid blocks 5-H, 5-I or 6-G of the
sentencing guidelines grid for nondrug crimes or in grid blocks 3-E, 3-F, 3-G, 3-H, 3-I, 4-
E or 4-F of the sentencing guidelines grid for drug crimes, or prior to revocation of a
nonprison sanction of a defendant whose offense is classified in the presumptive nonprison
grid block of either sentencing guideline grid or grid blocks 5-H, 5-I or 6-G of the sentencing
guidelines grid for nondrug crimes or in grid blocks 3-E, 3-F, 3-G, 3-H, 3-I, 4-E or 4-F of
the sentencing guidelines grid for drug crimes, the court shall consider placement of the
defendant in the Labette correctional conservation camp, conservation camps established
by the secretary of corrections pursuant to K.S.A. 75-52,127, and amendment thereto or a
community intermediate sanction center. Pursuant to this paragraph the defendant shall not
be sentenced to imprisonment if space is available in a conservation camp or a community
intermediate sanction center and the defendant meets all of the conservation camp's or a
community intermediate sanction center's placement criteria unless the court states on the
record the reasons for not placing the defendant in a conservation camp or a community
intermediate sanction center.

The court in committing a defendant to the custody of the secretary of corrections shall
fix a term of confinement within the limits provided by law. In those cases where the law
does not fix a term of confinement for the crime for which the defendant was convicted,
the court shall fix the term of such confinement.

In addition to any of the above, the court shall order the defendant to reimburse the state
general fund for all or a part of the expenditures by the state board of indigents' defense
services to provide counsel and other defense services to the defendant. In determining the
amount and method of payment of such sum, the court shall take account of the financial
resources of the defendant and the nature of the burden that payment of such sum will
impose. A defendant who has been required to pay such sum and who is not willfully in
default in the payment thereof may at any time petition the court which sentenced the
defendant to waive payment of such sum or any unpaid portion thereof. If it appears to the
satisfaction of the court that payment of the amount due will impose manifest hardship on
the defendant or the defendant's immediate family, the court may waive payment of all or
part of the amount due or modify the method of payment. The amount of attorney fees to
be included in the court order for reimbursement shall be the amount claimed by appointed
counsel on the payment voucher for indigents' defense services or the amount prescribed
by the board of indigents' defense services reimbursement tables as provided in K.S.A. 22-
4522, and amendments thereto, whichever is less.

(b) Dispositions which do not involve commitment to the custody of the secretary of
corrections shall not entail the loss by the defendant of any civil rights. Placement of of-
fenders in a conservation camp established by the secretary of corrections pursuant to K.S.A.
75-52,127, and amendments thereto, as a nonimprisonment disposition shall not entail the
loss by the defendant of any civil rights.

(c) This section shall not deprive the court of any authority conferred by any other
Kansas statute to decree a forfeiture of property, suspend or cancel a license, remove a
person from office, or impose any other civil penalty as a result of conviction of crime.

(d) An application for or acceptance of probation or assignment to a community cor-
rectional services program shall not constitute an acquiescence in the judgment for purpose
of appeal, and any convicted person may appeal from such conviction, as provided by law,
without regard to whether such person has applied for probation, suspended sentence or
assignment to a community correctional services program.

(e) The secretary of corrections is authorized to make direct placement to the Labette
correctional conservation camp or a conservation camp established by the secretary pursuant
to K.S.A. 75-52,127, and amendments thereto, of an inmate sentenced to the secretary's
custody if the inmate: (1) Has been sentenced to the secretary for a probation revocation
or, as a departure from the presumptive nonimprisonment grid block of either sentencing
grid, or for an offense which is classified in grid blocks 5-H, 5-I, or 6-G of the sentencing
guidelines grid for nondrug crimes or in grid blocks 3-E, 3-F, 3-G, 3-H, 3-I, 4-E, or 4-F of
the sentencing guidelines grid for drug crimes; and (2) otherwise meets admission criteria
of the camp. If the inmate successfully completes the six-month conservation camp program,
the secretary of corrections shall report such completion to the sentencing court and the
county or district attorney. The inmate shall then be assigned by the court to six months of
follow-up supervision conducted by the appropriate community corrections services pro-
gram. The court may also order that supervision continue thereafter for the length of time
authorized by K.S.A. 21-4611 and amendments thereto.

(f) When it is provided by law that a person shall be sentenced pursuant to K.S.A. 1993
Supp. 21-4628, prior to its repeal, the provisions of this section shall not apply.

Sec. 14. K.S.A. 21-4605 is hereby amended to read as follows: 21-4605. (a) (1) ~~Upon~~
~~request of the attorney for the state or the counsel for the defendant,~~ The judge shall make
available to the attorney for the state or counsel for the defendant the presentence report,
any report that may be received from the Topeka correctional facility or the state security
hospital and other diagnostic reports and shall allow the attorney or counsel a reasonable
time to review the report before sentencing the defendant. ~~Except as otherwise provided~~
~~in this section, all these reports shall be part of the record but shall be sealed and opened~~
~~only on order of the court.~~

(2) The court shall permit the attorney for the state or the counsel for the defendant,
~~upon request,~~ to copy and retain any of the reports under subsection (a)(1). Any reports
copied and retained shall be kept in the records of the attorney for the state or the counsel
for the defendant ~~and shall not be disclosed to any unauthorized person without permission~~
~~of the court~~. All costs of copying such reports shall be paid by the office of the attorney for
the state or the counsel for the defendant making the request.

(b) ~~If a defendant is committed to the custody of the secretary of corrections, all reports~~
~~under subsection (a)(1) shall be sent to the secretary of corrections and, in accordance with~~
~~K.S.A. 75-5220, and amendments thereto, to the warden of the state correctional institution~~
~~to which the defendant is conveyed.~~

~~(c) Nothing in this section shall be construed as prohibiting the attorney for the de-~~
~~fendant from disclosing the report of the presentence investigation, or other diagnostic~~
~~reports, to the defendant after receiving court approval to do so.~~

~~(d) Notwithstanding subsections (a), (b) and (c), the presentence report, any report that~~
~~may be received from the Topeka correctional facility or the state security hospital and other~~
~~diagnostic reports, shall be made available upon request to the Kansas sentencing commis-~~
~~sion for the purpose of data collection and evaluation.~~ The presentence report shall become
part of the court record and shall be accessible to the public, except that the official version,
the defendant's version, the victim's statement, any psychological reports and any drug and
alcohol reports shall be accessible only to the attorney for the state and the counsel for the
defendant, the sentencing judge, the department of corrections and if requested, the Kansas
sentencing commission. If the offender is committed to the custody of the secretary of cor-
rections, the report shall be sent to the secretary and, in accordance with K.S.A. 75-5220
and amendments thereto, to the warden of the state correctional institution to which the
defendant is conveyed.

~~(e)~~ (c) For felony crimes committed on or after July 1, 1993, the provisions of this section
are not applicable to the presentence investigation report.

Sec. 15. K.S.A. 21-4635 is hereby amended to read as follows: 21-4635. (a) Except as
provided in K.S.A. 21-4634 and amendments thereto, if a defendant is convicted of the crime
of capital murder and a sentence of death is not imposed, or if a defendant is convicted of
murder in the first degree based upon the finding of premeditated murder, the court shall
determine whether the defendant shall be required to serve a mandatory term of impris-
onment of 40 years or for crimes committed on and after July 1, 1999, a mandatory term
of imprisonment of 50 years or sentenced as otherwise provided by law.

(b) In order to make such determination, the court may be presented evidence con-
cerning any matter that the court deems relevant to the question of sentence and shall
include matters relating to any of the aggravating circumstances enumerated in K.S.A. 21-
4636 and amendments thereto and any mitigating circumstances. Any such evidence which
the court deems to have probative value may be received regardless of its admissibility under
the rules of evidence, provided that the defendant is accorded a fair opportunity to rebut
any hearsay statements. Only such evidence of aggravating circumstances as the state has
made known to the defendant prior to the sentencing shall be admissible and no evidence
secured in violation of the constitution of the United States or of the state of Kansas shall
be admissible. No testimony by the defendant at the time of sentencing shall be admissible
against the defendant at any subsequent criminal proceeding. At the conclusion of the ev-
identiary presentation, the court shall allow the parties a reasonable period of time in which
to present oral argument.

(c) If the court finds that one or more of the aggravating circumstances enumerated in
K.S.A. 21-4636 and amendments thereto exist and, further, that the existence of such ag-
gravating circumstances is not outweighed by any mitigating circumstances which are found
to exist, the defendant shall be sentenced pursuant to K.S.A. 21-4638 and amendments
thereto; otherwise, the defendant shall be sentenced as provided by law. The court shall
designate, in writing, the statutory aggravating circumstances which it found. The court may
make the findings required by this subsection for the purpose of determining whether to
sentence a defendant pursuant to K.S.A. 21-4638 and amendments thereto notwithstanding
contrary findings made by the jury or court pursuant to subsection (e) of K.S.A. 21-4624
and amendments thereto for the purpose of determining whether to sentence such defend-
ant to death.

Sec. 16. K.S.A. 21-4638 is hereby amended to read as follows: 21-4638. When it is
provided by law that a person shall be sentenced pursuant to this section, such person shall
be sentenced to imprisonment for life and shall not be eligible for probation or suspension,
modification or reduction of sentence. Except as otherwise provided, in addition, a person
sentenced pursuant to this section shall not be eligible for parole prior to serving 40 years'
imprisonment, and such 40 years' imprisonment shall not be reduced by the application of
good time credits. For crimes committed on and after July 1, 1999, a person sentenced
pursuant to this section shall not be eligible for parole prior to serving 50 years' imprison-
ment, and such 50 years' imprisonment shall not be reduced by the application of good time
credits. Upon sentencing a defendant pursuant to this section, the court shall commit the
defendant to the custody of the secretary of corrections and the court shall state in the
sentencing order of the judgment form or journal entry, whichever is delivered with the
defendant to the correctional institution, that the defendant has been sentenced pursuant
to K.S.A. 21-4638 and amendments thereto.

Sec. 17. K.S.A. 1998 Supp. 21-4704 is hereby amended to read as follows: 21-4704. (a)
For purposes of sentencing, the following sentencing guidelines grid for nondrug crimes
shall be applied in felony cases for crimes committed on or after July 1, 1993:

(b) The provisions of this section shall be applicable to the sentencing guidelines grid
for nondrug crimes. Sentences expressed in such grid represent months of imprisonment.

(c) The sentencing guidelines grid is a two-dimensional crime severity and criminal
history classification tool. The grid's vertical axis is the crime severity scale which classifies
current crimes of conviction. The grid's horizontal axis is the criminal history scale which
classifies criminal histories.

(d) The sentencing guidelines grid for nondrug crimes as provided in this section defines
presumptive punishments for felony convictions, subject to judicial discretion to deviate for
substantial and compelling reasons and impose a different sentence in recognition of aggra-
vating and mitigating factors as provided in this act. The appropriate punishment for a felony
conviction should depend on the severity of the crime of conviction when compared to all
other crimes and the offender's criminal history.

(e) (1) The sentencing court has discretion to sentence at any place within the sen-
tencing range. The sentencing judge shall select the center of the range in the usual case
and reserve the upper and lower limits for aggravating and mitigating factors insufficient to
warrant a departure.

(2) In presumptive imprisonment cases, the sentencing court shall pronounce the com-
plete sentence which shall include the prison sentence, the maximum potential reduction
to such sentence as a result of good time and the period of postrelease supervision at the
sentencing hearing. Failure to pronounce the period of postrelease supervision shall not
negate the existence of such period of postrelease supervision.

(3) In presumptive nonprison cases, the sentencing court shall pronounce the prison
sentence as well as the duration of the nonprison sanction at the sentencing hearing.

(f) Each grid block states the presumptive sentencing range for an offender whose crime
of conviction and criminal history place such offender in that grid block. If an offense is
classified in a grid block below the dispositional line, the presumptive disposition shall be
nonimprisonment. If an offense is classified in a grid block above the dispositional line, the
presumptive disposition shall be imprisonment. If an offense is classified in grid blocks 5-
H, 5-I or 6-G, the court may impose an optional nonprison sentence upon making the
following findings on the record:

(1) An appropriate treatment program exists which is likely to be more effective than
the presumptive prison term in reducing the risk of offender recidivism; and

(2) the recommended treatment program is available and the offender can be admitted
to such program within a reasonable period of time; or

(3) the nonprison sanction will serve community safety interests by promoting offender
reformation.

Any decision made by the court regarding the imposition of an optional nonprison sen-
tence if the offense is classified in grid blocks 5-H, 5-I or 6-G shall not be considered a
departure and shall not be subject to appeal.

(g) The sentence for the violation of K.S.A. 21-3411, aggravated assault against a law
enforcement officer or K.S.A. 21-3415, aggravated battery against a law enforcement officer
and amendments thereto which places the defendant's sentence in grid block 6-H or 6-I
shall be presumed imprisonment. The court may impose an optional nonprison sentence
upon making a finding on the record that the nonprison sanction will serve community
safety interests by promoting offender reformation. Any decision made by the court regard-
ing the imposition of the optional nonprison sentence, if the offense is classified in grid
block 6-H or 6-I, shall not be considered departure and shall not be subject to appeal.

(h) When a firearm is used to commit any person felony, the offender's sentence shall
be presumed imprisonment. The court may impose an optional nonprison sentence upon
making a finding on the record that the nonprison sanction will serve community safety
interests by promoting offender reformation. Any decision made by the court regarding the
imposition of the optional nonprison sentence shall not be considered a departure and shall
not be subject to appeal.

(i) The sentence for the violation of the felony provision of K.S.A. 8-1567 and subsection
~~(b) of K.S.A. 21-3705,~~ (c)(3) of K.S.A. 21-3412 and amendments thereto shall be as provided
by the specific mandatory sentencing requirements of that section and shall not be subject
to the provisions of this section or K.S.A. 21-4707 and amendments thereto. Notwithstanding
the provisions of any other section, the term of imprisonment imposed for the violation of
the felony provision of K.S.A. 8-1567 and subsection ~~(b) of K.S.A. 21-3705,~~ (c)(3) of K.S.A.
21-3412 and amendments thereto shall not be served in a state facility in the custody of the
secretary of corrections.

(j) The sentence for any persistent sex offender whose current convicted crime carries
a presumptive term of imprisonment shall be double the maximum duration of the pre-
sumptive imprisonment term. The sentence for any persistent sex offender whose current
conviction carries a presumptive nonprison term shall be presumed imprisonment and shall
be double the maximum duration of the presumptive imprisonment term. Except as oth-
erwise provided in this subsection, as used in this subsection, ``persistent sex offender'' means
a person who: (1) Has been convicted in this state of a sexually violent crime, as defined in
K.S.A. 22-3717 and amendments thereto; and (2) at the time of the conviction under sub-
section (1) has at least one conviction for a sexually violent crime, as defined in K.S.A. 22-
3717 and amendments thereto in this state or comparable felony under the laws of another
state, the federal government or a foreign government. The provisions of this subsection
shall not apply to any person whose current convicted crime is a severity level 1 or 2 felony.

(k) If it is shown at sentencing that the offender committed any felony violation for the
benefit of, at the direction of, or in association with any criminal street gang, with the specific
intent to promote, further or assist in any criminal conduct by gang members, the offender's
sentence shall be presumed imprisonment. Any decision made by the court regarding the
imposition of the optional nonprison sentence shall not be considered a departure and shall
not be subject to appeal. As used in this subsection, ``criminal street gang'' means any
organization, association or group of three or more persons, whether formal or informal,
having as one of its primary activities the commission of one or more person felonies or
felony violations of the uniform controlled substances act, K.S.A. 65-4101 et seq., and
amendments thereto, which has a common name or common identifying sign or symbol,
whose members, individually or collectively engage in or have engaged in the commission,
attempted commission, conspiracy to commit or solicitation of two or more person felonies
or felony violations of the uniform controlled substances act, K.S.A. 65-4101 et seq., and
amendments thereto, or any substantially similar offense from another jurisdiction.

(l) The sentence for a violation of subsection (a) of K.S.A. 21-3715 and amendments
thereto when such person being sentenced has a prior conviction for a violation of subsection
(a) or (b) of K.S.A. 21-3715 or 21-3716 and amendments thereto shall be presumed impris-
onment.

Sec. 18. K.S.A. 1998 Supp. 21-4706 is hereby amended to read as follows: 21-4706. (a)
For crimes committed on or after July 1, 1993, the sentences of imprisonment shall rep-
resent the time a person shall actually serve, subject to a reduction of up to 15% of the
primary sentence for good time as authorized by law.

(b) The sentencing court shall pronounce sentence in all felony cases.

(c) Violations of K.S.A. 21-3401, ~~subsection (a) of K.S.A. 21-3402,~~ 21-3439 and 21-3801
and amendments thereto are off-grid crimes for the purpose of sentencing. Except as oth-
erwise provided by K.S.A. 21-4622 through 21-4627, and 21-4629 through 21-4631, and
amendments thereto, the sentence shall be imprisonment for life.

Sec. 19. K.S.A. 1998 Supp. 21-4711 is hereby amended to read as follows: 21-4711. In
addition to the provisions of K.S.A. 21-4710 and amendments thereto, the following shall
apply in determining an offender's criminal history classification as contained in the pre-
sumptive sentencing guidelines grid for nondrug crimes and the presumptive sentencing
guidelines grid for drug crimes:

(a) Every three prior adult convictions or juvenile adjudications of class A and class B
person misdemeanors in the offender's criminal history, or any combination thereof, shall
be rated as one adult conviction or one juvenile adjudication of a person felony for criminal
history purposes. Every three prior adult convictions or juvenile adjudications of assault as
defined in K.S.A. 21-3408 and amendments thereto occurring within a period of commenc-
ing three years prior to the date of conviction for the current crime of conviction shall be
rated as one adult conviction or one juvenile adjudication of a person felony for criminal
history purposes.

(b) A conviction of subsection (a)(1) of K.S.A. 21-4204 and amendments thereto, crim-
inal possession of firearms by a person who is both addicted to and an unlawful user of a
controlled substance, subsection (a)(4) of K.S.A. 21-4204 and amendments thereto, posses-
sion of a firearm on school grounds or K.S.A. 21-4218 and amendments thereto, possession
of a firearm on the grounds or in the state capitol building, will be scored as a select class
B nonperson misdemeanor conviction or adjudication and shall not be scored as a person
misdemeanor for criminal history purposes.

(c) (1) If the current crime of conviction was committed before July 1, 1996, and is for
subsection (b) of K.S.A. 21-3404, involuntary manslaughter in the commission of K.S.A. 8-
1567 and amendments thereto driving under the influence, then, each prior adult conviction
or juvenile adjudication for K.S.A. 8-1567 and amendments thereto shall count as one person
felony for criminal history purposes.

(2) If the current crime of conviction was committed on or after July 1, 1996, and is for
involuntary manslaughter while driving under the influence of alcohol and drugs, each prior
adult conviction, diversion in lieu of criminal prosecution or juvenile adjudication for an act
described in K.S.A. 8-1567 and amendments thereto shall count as one person felony for
criminal history purposes.

(d) Prior burglary adult convictions and juvenile adjudications will be scored for criminal
history purposes as follows:

(1) As a prior person felony if the prior conviction or adjudication was classified as a
burglary as described in subsection (a) of K.S.A. 21-3715 and amendments thereto.

(2) As a prior nonperson felony if the prior conviction or adjudication was classified as
a burglary as described in subsection (b) or (c) of K.S.A. 21-3715 and amendments thereto.

The facts required to classify prior burglary adult convictions and juvenile adjudications
must be established by the state by a preponderance of the evidence.

(e) Out-of-state convictions and juvenile adjudications will be used in classifying the
offender's criminal history. An out-of-state crime will be classified as either a felony or a
misdemeanor according to the convicting jurisdiction. If a crime is a felony in another state,
it will be counted as a felony in Kansas. The state of Kansas shall classify the crime as person
or nonperson. In designating a crime as person or nonperson comparable offenses shall be
referred to. If the state of Kansas does not have a comparable offense, the out-of-state
conviction shall be classified as a nonperson crime. Convictions or adjudications occurring
within the federal system, other state systems, the District of Columbia, foreign, tribal or
military courts are considered out-of-state convictions or adjudications. The facts required
to classify out-of-state adult convictions and juvenile adjudications must be established by
the state by a preponderance of the evidence.

(f) Except as provided in subsections (4), (5) and (6) of K.S.A. ~~21-4705~~ 21-4710 and
amendments thereto, juvenile adjudications will be applied in the same manner as adult
convictions. Out-of-state juvenile adjudications will be treated as juvenile adjudications in
Kansas.

(g) A prior felony conviction of an attempt, a conspiracy or a solicitation as provided in
K.S.A. 21-3301, 21-3302 or 21-3303 and amendments thereto, to commit a crime shall be
treated as a person or nonperson crime in accordance with the designation assigned to the
underlying crime.

(h) Drug crimes are designated as nonperson crimes for criminal history scoring.

Sec. 20. K.S.A. 1998 Supp. 22-3717 is hereby amended to read as follows: 22-3717. (a)
Except as otherwise provided by this section, K.S.A. 1993 Supp. 21-4628 prior to its repeal
and K.S.A. 21-4635 through 21-4638 and amendments thereto, an inmate, including an
inmate sentenced pursuant to K.S.A. 21-4618 and amendments thereto, shall be eligible for
parole after serving the entire minimum sentence imposed by the court, less good time
credits.

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

(2) Except as provided by subsection (b)(1) or (b)(4), K.S.A. 1993 Supp. 21-4628 prior
to its repeal and K.S.A. 21-4635 through 21-4638, and amendments thereto, an inmate
sentenced to imprisonment for an off-grid offense committed on or after July 1, 1993, but
prior to July 1, 1999, shall be eligible for parole after serving 15 years of confinement,
without deduction of any good time credits and an inmate sentenced to imprisonment for
an off-grid offense committed on or after July 1, 1999, shall be eligible for parole after serving
20 years of confinement without deduction of any good time credits.

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

(4) An inmate sentenced to imprisonment for a violation of subsection (a) of K.S.A. 21-
3402 and amendments thereto committed on or after July 1, 1996, but prior to July 1, 1999,
shall be eligible for parole after serving 10 years of confinement without deduction of any
good time credits.

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

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

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

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

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

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

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

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

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

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

(b) any evidence received during the proceeding;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(4) may order the parolee or person on postrelease supervision to pay the administrative
fee imposed pursuant to K.S.A. 1998 Supp. 22-4529 unless the board finds compelling
circumstances which would render payment unworkable; and

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

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

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

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

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

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

Section 21. K.S.A. 22-4001 is hereby amended to read as follows: 22-4001. (a) ~~Subject~~
~~to the provisions of this act,~~ The mode of carrying out a sentence of death in this state shall
be by intravenous injection of a substance or substances in a quantity sufficient to cause
death in a swift and humane manner.

(b) The secretary of corrections shall supervise the carrying out of each sentence of
death and shall determine the procedures therefor, which shall be consistent with this act
and the other laws of the state. The secretary of corrections shall designate one or more
executioners and other persons necessary to assist in carrying out the sentence of death as
provided in this section. The identity of executioners and other persons designated to assist
in carrying out the sentence of death shall be confidential.

(c) ~~In order to provide~~ The secretary of corrections ~~with assistance in selecting~~ shall
select the type of substance or substances to be administered in carrying out a sentence of
death by intravenous injection in a swift and humane manner,. The secretary ~~shall appoint~~
~~a panel of three persons to advise the secretary, one of whom shall be a pharmacologist,~~
~~one of whom shall be a toxicologist and one of whom shall be an anesthesiologist. The panel~~
~~shall also advise the secretary of corrections concerning matters related to K.S.A. 22-4015.~~
~~The panel shall meet upon the call of the secretary and, for the performance of their official~~
~~duties, panel members shall be paid compensation, subsistence allowances, mileage and~~
~~other expenses as provided in K.S.A. 75-3223 and amendments thereto.~~ of health and en-
vironment shall certify to the secretary of corrections that the substance or substances se-
lected by the secretary of corrections will result in death in a swift and humane manner. If
the secretary of corrections desires to change the substance or substances to be administered
from those previously certified by the secretary of health and environment, the proposed
substance or substances also shall be certified as provided in this section.

(d) The secretary of corrections may designate in writing a warden of one of the cor-
rectional institutions under the secretary's supervision to perform the duties imposed upon
the secretary by this section and by K.S.A. 22-4002, 22-4003, 22-4013 and 22-4014, and
amendments thereto.

Sec. 22. K.S.A. 22-4003 is hereby amended to read as follows: 22-4003. ~~Besides~~ (a) In
addition to the secretary of corrections or the warden designated by the secretary, the
executioner and persons designated pursuant to K.S.A. 22-4001, and amendments thereto,
to assist in the execution, the following persons, and no others, may be present at the
execution: ~~The~~ (1) A member of the clergy attending the prisoner,; (2) not more than three
persons designated by the prisoner; and (3) not more than ~~six~~ 10 persons designated by the
secretary of corrections. as official witnesses. The secretary shall consider the inclusion of
members of the immediate family of any deceased victim of the prisoner as witnesses when
designating official witnesses. The identity of persons present at the execution, other than
the secretary or the warden designated by the secretary, shall be confidential. A witness may
elect to reveal such witness' own identity, but in no event shall a witness reveal the identity
of any other person present at the execution.

(b) All witnesses shall be 18 years of age or older.

(c) The secretary may deny the attendance of any person selected or designated as a
witness when the secretary determines it is necessary for reasons of security and order of
the institution.

(d) As used in this section, ``members of the immediate family'' means the spouse, a child
by birth or adoption, stepchild, parent, grandparent, grandchild, sibling or the spouse of
any member of the immediate family specified in this subsection.

Sec. 23. K.S.A. 22-4006 is hereby amended to read as follows: 22-4006. (a) At any time
prior to execution, a convict under sentence of death, such convict's counsel or the warden
of the correctional institution or sheriff having custody of such convict may request a de-
termination of the convict's sanity by a district judge of the judicial district in which such
convict was tried and sentenced. If the district judge determines that there is not sufficient
reason to believe that the convict is insane, the judge shall so find and refuse to suspend
the execution of such convict. If the district judge determines that there is sufficient reason
to believe that the convict is insane, the judge shall suspend the execution and conduct a
hearing to determine the sanity of the convict.

(b) At the hearing, the district judge shall determine the issue of the convict's sanity.
The judge shall order a psychiatric or psychological examination of the convict. For that
purpose, the court shall appoint two licensed physicians or licensed psychologists, or one of
each, qualified by training and practice to make such examination, to examine the convict
and report their findings in writing to the judge within 10 days after the order of examination
is issued. The convict shall have the right to present evidence and cross-examine any wit-
nesses at the hearing. No statement made by the convict in the course of any examination
provided for by this section, whether or not the convict consents to the examination, shall
be admitted in evidence against the convict in any criminal proceeding.

(c) If, at the conclusion of a hearing pursuant to this section, the judge determines that
the convict is sane, the judge shall enter an order ~~setting a date for the convict's execution,~~
~~which shall be carried into effect in the same manner as provided in the original sentence~~
recording the determination. A copy of the order shall be ~~sent by mail~~ delivered to the clerk
of the supreme court and to the secretary of corrections. Upon receipt of the order, the
supreme court shall issue to the secretary of corrections a warrant under seal of the supreme
court, commanding the secretary or a warden designated pursuant to K.S.A. 22-4001, and
amendments thereto, to proceed to carry out the sentence of execution during the week
designated by the supreme court. A copy of the warrant shall be delivered to the secretary
of corrections and the clerk of the district court.

(d) If, at the conclusion of a hearing pursuant to this section, the judge determines that
the convict is insane, the judge shall suspend the execution until further order. The judge
shall enter an order recording the determination. A copy of the order shall be delivered to
the clerk of the supreme court and the secretary of corrections. Upon receipt of the order,
the supreme court shall issue to the secretary of corrections a warrant under seal of the
supreme court suspending the sentence. A copy of the warrant shall be delivered to the
secretary of corrections and the clerk of the district court. Any time thereafter when the
judge has sufficient reason to believe that the convict has become sane, the judge ~~shall~~ again
shall determine the sanity of the convict as provided by this section. Proceedings pursuant
to this section may continue to be held at such times as the district judge orders until it is
~~either~~ determined either that such convict is sane or incurably insane.

Sec. 24. K.S.A. 22-4009, as amended by section 35 of 1999 House Bill No. 2206, is
hereby amended to read as follows: 22-4009. (a) If a convict under sentence of death appears
to be pregnant or alleges to be pregnant, the person having custody of the convict shall
notify the secretary of corrections. The secretary shall designate one or more licensed phy-
sicians to examine the convict to determine if the convict is pregnant. If the convict is not
pregnant, the execution shall be carried out as previously ordered. If the convict is pregnant,
the secretary of corrections shall notify the ~~chief judge of the judicial district where the~~
~~conviction was rendered and the execution of the sentence of death shall be postponed. If~~
~~the convict is not pregnant, the execution shall be carried out as previously ordered.~~ clerk
of the supreme court. Upon receipt of the notice, the supreme court shall issue to the secretary
of corrections a warrant under seal of the supreme court postponing the execution of the
sentence of death. A copy of the warrant shall be delivered to the secretary of corrections
and the clerk of the district court.

(b) When the execution of a sentence of death is postponed because of pregnancy, the
~~judge~~ secretary of corrections shall wait until the child is born or the pregnancy is otherwise
terminated and then the ~~judge~~ secretary shall ~~fix the date for the execution~~ notify the clerk
of the supreme court of the birth of the child or termination of the pregnancy. Upon receipt
of the notice, the supreme court shall issue to the secretary of corrections a warrant under
seal of the supreme court, commanding the secretary or a warden designated pursuant to
K.S.A. 22-4001, and amendments thereto, to proceed to carry out the sentence of execution
during the week designated by the supreme court. A copy of the warrant shall be delivered
to the secretary of corrections and the clerk of the district court. At any time during the
postponement of the execution, the ~~judge~~ secretary may order an examination as provided
in this section to determine whether the convict remains pregnant. The costs of each medical
examination conducted pursuant to this section shall be paid by the county where the case
originated.

Sec. 25. K.S.A. 22-4011 is hereby amended to read as follows: 22-4011. If any person
who has been sentenced to death escapes and is not retaken before the time fixed for
execution, it shall be lawful for any sheriff or other officer or person to rearrest and return
the person to the custody of the secretary of corrections. Upon such return to custody, the
secretary of corrections shall give notice thereof to the ~~governor~~ clerk of the supreme court.
Upon receipt of such notice, the ~~governor shall issue a warrant fixing and appointing a day~~
~~for the execution,~~ supreme court shall issue to the secretary of corrections a warrant under
seal of the supreme court, commanding the secretary or a warden designated pursuant to
K.S.A. 22-4001, and amendments thereto, to proceed to carry out the sentence of execution
during the week designated by the supreme court which shall be carried into effect in the
same manner as provided by statute for the execution of an original sentence of death. A
copy of the warrant shall be delivered to the secretary of corrections and the clerk of the
district court.

Sec. 26. K.S.A. 22-4012 is hereby amended to read as follows: 22-4012. Whenever any
person has been sentenced to death, it shall be the duty of the clerk of the court before
which the conviction was rendered to issue ~~a warrant~~ an order, under the seal of the court,
which shall recite the conviction and sentence and be directed to the secretary of corrections.
The clerk shall deliver the ~~warrant~~ order to the sheriff of the county in which the conviction
was rendered, and such sheriff ~~shall~~ promptly shall transport such convicted person to the
state correctional institution designated by the secretary of corrections and deliver such
convict, together with the ~~warrant~~ order, into the custody of the warden of the designated
institution, who shall receive and safely keep such convict until the time of execution, or
until otherwise ordered by the secretary or other competent authority. The warden shall
notify the secretary of corrections of the receipt of the convict and ~~warrant~~ such order.

Sec. 27. K.S.A. 22-4013 is hereby amended to read as follows: 22-4013. (a) It shall be
the duty of the secretary of corrections or the warden designated by the secretary to proceed
~~at the time fixed in accordance with law~~ to execute a sentence of death in the manner
prescribed by this act.

(b) Upon receipt of an order of the district court as provided by this act, the supreme
court shall issue to the secretary of corrections a warrant under seal of the supreme court,
commanding the secretary or a warden designated pursuant to K.S.A. 22-4001, and amend-
ments thereto, to proceed to carry out the sentence of execution during the week designated
by the supreme court. The week designated in the warrant shall be sufficient to enable the
secretary to give notice as provided in subsection (c). A copy of the warrant shall be delivered
to the secretary of corrections and the clerk of the district court. For purposes of this act,
the term ``week'' shall mean the time period from 12:01 a.m. Sunday through and including
11:59 p.m. the following Saturday. If the week designated in the warrant commanding the
execution of a death sentence begins on a day of the week other than a Sunday, or sets out
a particular date for the execution, the secretary of corrections shall notify the clerk of the
supreme court.

(c) The secretary of corrections shall carry out the execution commanded by the warrant
issued by the supreme court during the week designated by the supreme court on a date
selected by the secretary. The secretary shall give notice of the date selected by the secretary
for the execution at least seven calendar days before the execution to the clerk of the supreme
court, the clerk of the district court in which the defendant was convicted, the defendant,
the defendant's counsel and the attorney general. The secretary may carry out the execution
at any time during the date selected or as soon thereafter as the secretary deems appropriate.

Sec. 28. K.S.A. 22-4014 is hereby amended to read as follows: 22-4014. ~~If the supreme~~
~~court orders a suspension of the execution of a sentence of death, the suspension shall~~
~~continue until the proceedings are determined. If, after determining the same,~~ If a sentence
of execution is suspended by an order of a court, the suspension shall continue until the
supreme court orders otherwise. If the sentence is affirmed, the supreme court shall order
the execution of the sentence of death and shall designate a ~~day therefor~~ week during which
the sentence of execution shall be carried out if the week previously designated by the court
has passed. Otherwise, the execution shall be carried out during the week previously des-
ignated by the court. It shall be the duty of the clerk of the supreme court to issue to the
secretary of corrections a warrant under the seal of the court, commanding the secretary or
a warden designated pursuant to K.S.A. 22-4001, and amendments thereto, to proceed to
carry the sentence into execution ~~at the time appointed~~ during the week designated by the
court~~, which time~~. The week during which the sentence of execution is to be carried out shall
be stated in the warrant. Upon receipt of the warrant it shall be the duty of the secretary
of corrections to cause the sentence to be executed as provided by this act at during the
time designated by the court.

Sec. 29. K.S.A. 1998 Supp. 22-4902 is hereby amended to read as follows: 22-4902. As
used in this act, unless the context otherwise requires:

(a) ``Offender'' means: (1) A sex offender as defined in subsection (b); (2) a violent
offender as defined in subsection (d); (3) any person who, on and after the effective date of
this act, is convicted of any of the following crimes when the victim is less than 18 years of
age:

(A) Kidnapping as defined in K.S.A. 21-3420 and amendments thereto, except by a
parent;

(B) aggravated kidnapping as defined in K.S.A. 21-3421 and amendments thereto; or

(C) criminal restraint as defined in K.S.A. 21-3424 and amendments thereto, except by
a parent;

(4) any person convicted of any of the following criminal sexual conduct if one of the
parties involved is less than 18 years of age:

(A) Adultery as defined by K.S.A. 21-3507, and amendments thereto;

(B) criminal sodomy as defined by subsection (a)(1) of K.S.A. 21-3505, and amendments
thereto;

(C) promoting prostitution as defined by K.S.A. 21-3513, and amendments thereto;

(D) patronizing a prostitute as defined by K.S.A. 21-3515, and amendments thereto;

(E) lewd and lascivious behavior as defined by K.S.A. 21-3508, and amendment thereto;
or

(F) unlawful sexual relations as defined by K.S.A. 21-3520, and amendments thereto;

(5) any conviction for an offense in effect at any time prior to the effective date of this
act, that is comparable to any crime defined in subsection (3) or (4), or any federal or other
state conviction for an offense that under the laws of this state would be an offense defined
in subsection (3) or (4); or

(6) an attempt, conspiracy or criminal solicitation, as defined in K.S.A. 21-3301, 21-
3302 or 21-3303 and amendments thereto, of an offense defined in subsection (3) or (4).

~~Upon such conviction, the court shall certify that the person is an offender subject to the~~
~~provisions of K.S.A. 22-4901~~ ~~et seq.~~ ~~and amendments thereto and shall include this certifi-~~
~~cation in the order of commitment.~~ Convictions which result from or are connected with
the same act, or result from crimes committed at the same time, shall be counted for the
purpose of this section as one conviction. Any conviction set aside pursuant to law is not a
conviction for purposes of this section. A conviction from another state shall constitute a
conviction for purposes of this section.

(b) ``Sex offender'' includes any person who, after the effective date of this act, is con-
victed of any sexually violent crime set forth in subsection (c). ~~Upon such conviction, the~~
~~court shall certify that the person is a sex offender and shall include this certification in the~~
~~order of commitment. Convictions which result from or are connected with the same act,~~
~~or result from crimes committed at the same time, shall be counted for the purpose of this~~
~~section as one conviction. Any conviction set aside pursuant to law is not a conviction for~~
~~purposes of this section. A conviction from another state shall constitute a conviction for~~
~~purposes of this section.~~

(c) ``Sexually violent crime'' 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 amend-
ments 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 by K.S.A. 21-3510 and amendments
thereto;

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

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

(9) sexual battery as defined by K.S.A. 21-3517 and amendments thereto;

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

(11) aggravated incest as defined by K.S.A. 21-3603 and amendments thereto; or

(12) any conviction for a offense in effect at any time prior to the effective date of this
act, that is comparable to a sexually violent crime as defined in subparagraphs (1) through
(11), or any federal or other state conviction for a felony offense that under the laws of this
state would be a sexually violent crime as defined in this section;

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

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

(d) ``Violent offender'' includes any person who, after the effective date of this act, is
convicted of any of the following crimes:

(1) Capital murder as defined by K.S.A. 21-3439 and amendments thereto;

(2) murder in the first degree as defined by K.S.A. 21-3401 and amendments thereto;

(3) murder in the second degree as defined by K.S.A. 21-3402 and amendments thereto;

(4) voluntary manslaughter as defined by K.S.A. 21-3403 and amendments thereto;

(5) involuntary manslaughter as defined by K.S.A. 21-3404 and amendments thereto;
or

(6) any conviction for an offense in effect at any time prior to the effective date of this
act, that is comparable to any crime defined in this subsection, or any federal or other state
conviction for an offense that under the laws of this state would be an offense defined in
this subsection; or

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

~~Upon such conviction, the court shall certify that the person is an offender subject to the~~
~~provisions of K.S.A. 22-4901~~ ~~et seq.~~ ~~and amendments thereto and shall include this certifi-~~
~~cation in the order of commitment. Convictions which result from or are connected with~~
~~the same act, or result from crimes committed at the same time, shall be counted for the~~
~~purpose of this section as one conviction. Any conviction set aside pursuant to law is not a~~
~~conviction for purposes of this section. A conviction from another state shall constitute a~~
~~conviction for purposes of this section.~~

(e) ``Law enforcement agency having jurisdiction'' means the sheriff of the county in
which the offender expects to reside upon the offender's discharge, parole or release.

(f) ``Aggravated offenses'' means engaging in sexual acts involving penetration with vic-
tims of any age through the use of force or the threat of serious violence, or engaging in
sexual acts involving penetration with victims less than 14 years of age, and includes the
following offenses:

(1) Rape as defined in subsection (a)(1)(A) and subsection (a)(2) of K.S.A. 1998 Supp.
21-3502, and amendments thereto;

(2) aggravated criminal sodomy as defined in subsection (a)(1) and subsection (a)(3)(A)
of K.S.A. 21-3506, and amendments thereto; and

(3) any attempt, conspiracy or criminal solicitation, as defined in K.S.A. 21-3301, 21-
3302 or 21-3303 and amendments thereto, of an offense defined in subsection (f).

Sec. 30. K.S.A. 22-4903 is hereby amended to read as follows: 22-4903. Any person
who is required to register as provided in this act who violates any of the provisions of this
act is guilty of a ~~class A nonperson misdemeanor~~ severity level 10, nonperson felony.

Sec. 31. K.S.A. 1998 Supp. 22-4904 is hereby amended to read as follows: 22-4904. (a)
(1) Except as provided in subsection (a)(2), within 15 10 days of the offender coming into
any county in which the offender resides or is temporarily domiciled for more than 15 10
days, the offender shall register with the sheriff of the county.

(2) Within 15 10 days of the offender coming into any county in which the offender
resides or temporarily resides for more than 15 10 days, any offender who has provided the
information and completed and signed the registration form as required in K.S.A. 22-4905
and amendments thereto, shall verify with the sheriff of the county that the sheriff has
received such offender's information and registration form.

(3) For persons required to register as provided in subsection (a)(1), the sheriff shall:
(A) Explain the duty to register and the procedure for registration;

(B) obtain the information required for registration as provided in K.S.A. 22-4907 and
amendments thereto;

(C) inform the offender that the offender must give written notice of any change of
address within 10 days of a change in residence to the law enforcement agency where last
registered and the Kansas bureau of investigation;

(D) inform the offender that if the offender changes residence to another state, the
offender must inform the law enforcement agency where last registered and the Kansas
bureau of investigation of such change in residence and must register in the new state within
10 days of such change in residence; and

(E) require the offender to read and sign the registration form which shall include a
statement that the requirements provided in this subsection have been explained to the
offender.

(4) Such sheriff, within three days of receipt of the initial registration shall forward this
information to the Kansas bureau of investigation.

(5) Notwithstanding any other provision of law, if a diversionary agreement or probation
order, either adult or juvenile, requires registration under the Kansas offender registration
act then all provisions of that act shall apply, except that the term of registration shall be
controlled by such diversionary agreement or probation order.

(b) (1) If any person required to register as provided in this act changes the address of
the person's residence, the offender, within 10 days, shall inform in writing the Kansas
bureau of investigation of the new address.

(2) After receipt of the change of address, the Kansas bureau of investigation shall
forward this information to the law enforcement agency having jurisdiction of the new place
of residence within 10 days of such receipt of the change of address.

(c) For any person required to register as provided in this act, every 90 days after the
person's initial registration date during the period the person is required to register, the
following applies:

(1) The Kansas bureau of investigation shall mail a nonforwardable verification form to
the last reported address of the person.

(2) The person shall mail the verification form to the Kansas bureau of investigation
within 10 days after receipt of the form.

(3) The verification form shall be signed by the person, and shall state that the person
still resides at the address last reported to the Kansas bureau of investigation.

(4) If the person fails to mail the verification form to the Kansas bureau of investigation
within 10 days after receipt of the form, the person shall be in violation of the Kansas
offender registration act.

(5) Nothing contained in this section shall be construed to alleviate any person required
to register as provided in this act from meeting the requirements prescribed in subsection
(a)(1), (a)(2) and (b)(1).

Sec. 32. K.S.A. 1998 Supp. 22-4905 is hereby amended to read as follows: 22-4905. (a)
(1) Any offender, who is discharged or paroled from a prison, hospital or other institution
or facility involving a violation of any crime as provided in subsection (a), (b) or (d) of K.S.A.
22-4902 and amendments thereto, prior to discharge, parole or release, shall be informed
by the staff of the facility in which the offender was confined of the duty to register as
provided in this act.

(2) (A) The staff of the facility shall: (i) Explain the duty to register and the procedure
for registration;

(ii) obtain the information required for registration as provided in K.S.A. 22-4907 and
amendments thereto;

(iii) inform the offender that the offender must give written notice of any change of
address within 10 days of a change in residence to the law enforcement agency where last
registered and the Kansas bureau of investigation;

(iv) inform the offender that if the offender changes residence to another state, the
offender must inform the law enforcement agency where last registered and the Kansas
bureau of investigation of such change in residence and must register in the new state within
10 days of such change in residence; and

(v) require the offender to read and sign the registration form which shall include a
statement that the requirements provided in this subsection have been explained to the
offender.

(B) The staff of the facility shall give one copy of the form to the person, within three
days, and shall send two copies of the form provided by subsection (2)(A)(v) to the Kansas
bureau of investigation, which shall then forward one copy to the law enforcement agency
having jurisdiction where the person expects to reside upon discharge, parole or release.
The Kansas bureau of investigation must immediately ensure that such information is en-
tered in the state law enforcement record system. The Kansas bureau of investigation shall
transmit such conviction data and fingerprints to the federal bureau of investigation.

(b) (1) Any offender who is released on probation, receives a suspended sentence, sen-
tenced to community corrections or released on postrelease supervision because of the
commission of any crime as provided in subsection (a), (b) or (d) of K.S.A. 22-4902 and
amendments thereto, prior to release, shall be informed of the offenders duty to register as
provided in this act by the court in which the offender is convicted.

(2) (A) The court shall: (i) Explain the duty to register and the procedure for registra-
tion;

(ii) obtain the information required for registration as provided in K.S.A. 22-4907 and
amendments thereto;

(iii) inform the offender that the offender must give written notice of any change of
address within 10 days of a change in residence to the law enforcement agency where last
registered and the Kansas bureau of investigation;

(iv) inform the offender that if the offender changes residence to another state, the
offender must inform the law enforcement agency where last registered and the Kansas
bureau of investigation of such change in residence and must register in the new state within
10 days of such change in residence; and

(v) require the offender to read and sign the registration form which shall include a
statement that the requirements provided in this subsection have been explained to the
offender.

(B) The court shall give one copy of the form to the person and, within three days, shall
send two copies of the form provided by subsection (2)(A)(v) to the Kansas bureau of
investigation which shall then forward one copy to the law enforcement agency having
jurisdiction where the person expects to reside upon release. The Kansas bureau of inves-
tigation must immediately ensure that such information is entered in the state law enforce-
ment record system. The Kansas bureau of investigation shall transmit such conviction data
and fingerprints to the federal bureau of investigation.

Sec. 33. K.S.A. 1998 Supp. 22-4906 is hereby amended to read as follows: 22-4906. (a)
Any person required to register as provided in this act shall be required to register: (1) Upon
the first conviction of a sexually violent crime as defined in subsection (c) of K.S.A. 22-4902
and amendments thereto, any offense as defined in subsection (a) of K.S.A. 22-4902 and
amendments thereto or any offense as defined in subsection (d) of K.S.A. 22-4902 and
amendments thereto, if not confined, for a period of 10 years after conviction, or, if confined,
for a period of 10 years after paroled, discharged or released; or (2) upon a second or
subsequent conviction for such person's lifetime.

(b) Upon the first conviction, liability for registration terminates, if not confined, at the
expiration of 10 years from the date of conviction, or, if confined, at the expiration of 10
years from the date of parole, discharge or release, if the convicted offender does not again
become liable to register as provided by this act during that period.

(c) On and after July 1, 1999, any person who has been convicted of an aggravated
offense shall be required to register for such person's lifetime. The provisions of this subsec-
tion shall expire on June 30, 2009.

Sec. 34. K.S.A. 1998 Supp. 22-4908 is hereby amended to read as follows: 22-4908. (a)
Any offender registered as provided in this act may apply to the sentencing court for an
order relieving the offender of the duty of registration, except that no offender may apply
as provided in this section for an order relieving the offender of the duty of registration
until such offender has registered for a period of at least 10 years for each conviction for
which an offender must register as provided by this act. The court shall hold a hearing on
the application at which the applicant and any interested persons may present witnesses and
other evidence.

(b) At such hearing, if the person is a person who is required to register due to a
conviction of a sexually violent crime as defined in K.S.A. 22-4902 and amendments thereto,
the court shall receive and consider a report by a board composed of experts in the field of
the behavior and treatment of sexual offenders. Such board shall be appointed as provided
by rules and regulations promulgated by the attorney general. If, after the hearing involving
such person, the court finds by a preponderance of the evidence that the sex offender is
rehabilitated and that the sex offender, does not suffer from a mental abnormality or per-
sonality disorder that would make the person likely to engage in a predatory sexually violent
crime, the court shall grant an order relieving the offender of the duty of further registration
under this act. For purposes of this act, ``mental abnormality'' means a congenital or acquired
condition affecting the emotional or volitional capacity which predisposes the person to
commit a sexually violent crime in a degree constituting such person a menace to the health
and safety of others.

(c) If, after the hearing involving a person who is an offender who was not required to
register due to a conviction of a sexually violent crime as defined in K.S.A. 22-4902 and
amendments thereto, the court finds by a preponderance of the evidence that the offender
is rehabilitated, the court shall grant an order relieving the offender of the duty of further
registration under this act.

(d) Any person registered as provided in this act may apply to the sentencing court for
an order relieving such person of the duty of registration for any conviction which has been
set aside. The court shall hold a hearing on the application at which the applicant shall
present evidence verifying that such applicant's conviction was set aside. If the court finds
that the person's conviction was set aside, the court shall grant an order relieving the person
of the duty of further registration under this act for any conviction which has been set aside.
Such court granting such an order shall forward a copy of such order to the sheriff of the
county in which such person has registered and to the Kansas bureau of investigation. Upon
receipt of such copy of the order, such sheriff and the Kansas bureau of investigation shall
remove such person's name from the registry for any conviction which has been set aside.
Nothing contained in this subsection shall relieve any person of the duty to register or any
other duty prescribed under this act for any conviction which has not been set aside.

(e) Any person required to register as an offender pursuant to the Kansas offender
registration act, K.S.A. 22-4901 et seq., and amendments thereto, who has a second or
subsequent conviction for an offense which requires registration pursuant to such act, and
any person who has been convicted of an aggravated offense, shall not be granted an order
relieving the offender of further registration under this act. The provisions of this subsection
shall expire on June 30, 2009.

Sec. 35. K.S.A. 1998 Supp. 75-5217, as amended by section 1 of 1999 House Bill No.
2137, is hereby amended to read as follows: 75-5217. (a) At any time during release on
parole, conditional release or postrelease supervision, the secretary of corrections may issue
a warrant for the arrest of a released inmate for violation of any of the conditions of release,
or a notice to appear to answer to a charge of violation. Such notice shall be served personally
upon the released inmate. The warrant shall authorize any law enforcement officer to arrest
and deliver the released inmate to a place as provided by subsection (f). Any parole officer
may arrest such released inmate without a warrant, or may deputize any other officer with
power of arrest to do so by giving such officer a written arrest and detain order setting forth
that the released inmate, in the judgment of the parole officer, has violated the conditions
of the inmate's release. The written arrest and detain order delivered with the released
inmate by the arresting officer to the official in charge of the institution or place to which
the released inmate is brought for detention shall be sufficient warrant for detaining the
inmate. After making an arrest the parole officer shall present to the detaining authorities
a similar arrest and detain order and statement of the circumstances of violation. Pending
a hearing, as provided in this section, upon any charge of violation the released inmate shall
remain incarcerated in the institution or place to which the inmate is taken for detention.

(b) Upon such arrest and detention, the parole officer shall notify the secretary of cor-
rections, or the secretary's designee, within five days and shall submit in writing a report
showing in what manner the released inmate had violated the conditions of release. After
such notification is given to the secretary of corrections, or upon an arrest by warrant as
herein provided, and the finding of probable cause pursuant to procedures established by
the secretary of a violation of the released inmate's conditions of release, the secretary shall
cause the released inmate to be brought before the Kansas parole board, its designee or
designees, for a hearing on the violation charged, under such rules and regulations as the
board may adopt. It is within the discretion of the Kansas parole board whether such hearing
requires the released inmate to appear personally before the board when such inmate's
violation results from a conviction for a new felony or misdemeanor. An offender under
determinant sentencing whose violation does not result from a conviction of a new felony or
misdemeanor may waive the right to a final revocation hearing before the Kansas parole
board under such conditions and terms as may be prescribed by rules and regulations prom-
ulgated by the Kansas parole board. Relevant written statements made under oath shall be
admitted and considered by the Kansas parole board, its designee or designees, along with
other evidence presented at the hearing. If the violation is established to the satisfaction of
the Kansas parole board, the board may continue or revoke the parole or conditional release,
or enter such other order as the board may see fit. ~~Revocations~~ The revocation of release
of inmates who are on a specified period of postrelease supervision shall be for a six-month
period of confinement from the date of the revocation hearing before the board or the
effective date of waiver of such hearing by the offender pursuant to rules and regulations
promulgated by the Kansas parole board, if the violation does not result from a conviction
for a new felony or misdemeanor. Such period of confinement may be reduced by not more
than three months based on the inmate's conduct, work and program participating during
the incarceration period. The reduction in the incarceration period shall be on an earned
basis pursuant to rules and regulations adopted by the secretary of corrections.

(c) If the violation does result from a conviction for a new felony or misdemeanor, upon
revocation the inmate shall serve the entire remaining balance of the period of postrelease
supervision even if the new conviction did not result in the imposition of a new term of
imprisonment.

(d) In the event the released inmate reaches conditional release date as provided by
K.S.A. 22-3718 and amendments thereto after a finding of probable cause, pursuant to
procedures established by the secretary of corrections of a violation of the released inmate's
conditions of release, but prior to a hearing before the Kansas parole board, the secretary
of corrections shall be authorized to detain the inmate until the hearing by the Kansas parole
board. The secretary shall then enforce the order issued by the Kansas parole board.

(e) If the secretary of corrections issues a warrant for the arrest of a released inmate
for violation of any of the conditions of release and the released inmate is subsequently
arrested in the state of Kansas, either pursuant to the warrant issued by the secretary of
corrections or for any other reason, the released inmate's sentence shall not be credited
with the period of time from the date of the issuance of the secretary's warrant to the date
of the released inmate's arrest.

If a released inmate for whom a warrant has been issued by the secretary of corrections
for violation of the conditions of release is subsequently arrested in another state, and the
released inmate has been authorized as a condition of such inmate's release to reside in or
travel to the state in which the released inmate was arrested, and the released inmate has
not absconded from supervision, the released inmate's sentence shall not be credited with
the period of time from the date of the issuance of the warrant to the date of the released
inmate's arrest. If the released inmate for whom a warrant has been issued by the secretary
of corrections for violation of the conditions of release is subsequently arrested in another
state for reasons other than the secretary's warrant and the released inmate does not have
authorization to be in the other state or if authorized to be in the other state has been
charged by the secretary with having absconded from supervision, the released inmate's
sentence shall not be credited with the period of time from the date of the issuance of the
warrant by the secretary to the date the released inmate is first available to be returned to
the state of Kansas. If the released inmate for whom a warrant has been issued by the
secretary of corrections for violation of a condition of release is subsequently arrested in
another state pursuant only to the secretary's warrant, the released inmate's sentence shall
not be credited with the period of time from the date of the issuance of the secretary's
warrant to the date of the released inmate's arrest, regardless of whether the released in-
mate's presence in the other state was authorized or the released inmate had absconded
from supervision.

The secretary may issue a warrant for the arrest of a released inmate for violation of any
of the conditions of release and may direct that all reasonable means to serve the warrant
and detain such released inmate be employed including but not limited to notifying the
federal bureau of investigation of such violation and issuance of warrant and requesting from
the federal bureau of investigation any pertinent information it may possess concerning the
whereabouts of the released inmate.

(f) Law enforcement officers shall execute warrants issued by the secretary of correc-
tions pursuant to subsection (a) or (d), and shall deliver the inmate named in the warrant
to the jail used by the county where the inmate is arrested unless some other place is
designated by the secretary, in the same manner as for the execution of any arrest warrant.

(g) For the purposes of this section, an inmate or released inmate is an individual under
the supervision of the secretary of corrections, including, but not limited to, an individual
on parole, conditional release, postrelease supervision, probation granted by another state
or an individual supervised under any interstate compact in accordance with the provisions
of the uniform act for out-of-state parolee supervision, K.S.A. 22-4101 et seq. and amend-
ments thereto.

New Sec. 36. Nothing in the Kansas offender registration act shall create a cause of
action against the state or an employee of the state acting within the scope of the employee's
employment as a result of requiring an offender to register or an offender's failure to register.

New Sec. 37. (a) Any offender who was required to be registered pursuant to the Kansas
offender registration act K.S.A. 22-4901 et seq. and amendments thereto, prior to July 1,
1999, and who would not have been required to be registered pursuant to the Kansas
offender registration act on and after July 1, 1999, as a result of enactment of this act, shall
be entitled to be relieved of the requirement to be registered. Such offender may apply to
the sentencing court for an order relieving the offender of the duty of registration. The
court shall hold a hearing on the application at which the applicant shall present evidence
verifying that such applicant no longer satisfies the definition of offender pursuant to K.S.A.
22-4902 and amendments thereto. If the court finds that the person no longer satisfies the
definition of offender pursuant to K.S.A. 22-4902 and amendments thereto, the court shall
grant an order relieving the offender's duty to register if the offender no longer fulfills the
definition of offender pursuant to K.S.A. 22-4902 and amendments thereto. Such court
granting such an order shall forward a copy of such order to the sheriff of the county in
which such person has registered and to the Kansas bureau of investigation. Upon receipt
of such copy of the order, such sheriff and the Kansas bureau of investigation shall remove
such person's name from the registry.

(b) This section shall be part of an supplemental to the Kansas offender registration act.

New Sec. 38. (a) Unlawful voluntary sexual relations is engaging in voluntary: (1) Sexual
intercourse; (2) sodomy; or (3) lewd fondling or touching with a child who is 14 years of
age but less than 16 years of age and the offender is less than 19 years of age and less than
four years of age older than the child and the child and the offender are the only parties
involved and are members of the opposite sex.

(b) (1) Unlawful voluntary sexual relations as provided in subsection (a)(1) is a severity
level 8, person felony.

(2) Unlawful voluntary sexual relations as provided in subsection (a)(2) is a severity level
9, person felony.

(3) Unlawful voluntary sexual relations as provided in subsection (a)(3) is a severity level
10, person felony.

Sec. 39. K.S.A. 21-3435, 21-3520, 21-3705, 21-3731, 21-4605, 21-4635, 21-4638, 22-
4001, 22-4003, 22-4006, 22-4009, as amended by section 35 of 1999 House Bill No. 2206,
22-4011, 22-4012, 22-4013, 22-4014, 22-4015 and 22-4903 and K.S.A. 1998 Supp. 8-262,
8-287, 21-2511, 21-3204, 21-3402, 21-3413, 21-3810, 21-4201, 21-4603d, 21-4704, 21-4706,
21-4711, 22-3717, 22-4902, 22-4904, 22-4905, 22-4906, 22-4908 and 75-5217, as amended
by section 1 of 1999 House Bill No. 2137, are hereby repealed.

Sec. 40. This act shall take effect and be in force from and after its publication in the
statute book.'';

Also on page 5, by striking all in lines 4 through 43;

By striking all on pages 6 through 31;

On page 1, in the title, by striking all in lines 13 through 20 and inserting ``crimes, criminal
procedure and punishment; relating to sentencing; dispositional alternatives; capital murder,
execution of death sentences; prescribing certain penalties; amending K.S.A. 21-3435, 21-
3520, 21-3705, 21-3731, 21-4605, 21-4635, 21-4638, 22-4001, 22-4003, 22-4006, 22-4009,
as amended by section 35 of 1999 House Bill No. 2206, 22-4011, 22-4012, 22-4013, 22-
4014 and 22-4903 and K.S.A. 1998 Supp. 8-262, 8-287, 21-2511, 21-3204, 21-3402, 21-3413,
21-3810, 21-4201, 21-4603d, 21-4704, 21-4706, 21-4711, 22-3717, 22-4902, 22-4904, 22-
4905, 22-4906, 22-4908 and 75-5217, as amended by section 1 of 1999 House Bill No. 2137,
and repealing the existing sections; also repealing K.S.A. 22-4015.'';

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

Michael R. O'Neal

Tim Carmody

Janice L. Pauls
Conferees on the part of House

Tim Emert

John Vratil

Greta Goodwin
Conferees on part of Senate

Senator Vratil moved the Senate adopt the Conference Committee Report on SB 149.

On roll call, the vote was: Yeas 30, nays 9, present and passing 0; absent or not voting 1.

Yeas: Barone, Becker, Bleeker, Bond, Corbin, Donovan, Downey, Emert, Gilstrap, Good-
win, Hensley, Jones, Jordan, Kerr, Langworthy, Lawrence, Lee, Morris, Oleen, Petty, Prae-
ger, Ranson, Salisbury, Salmans, Steffes, Steineger, Stephens, Umbarger, Vidricksen, Vratil.

Nays: Biggs, Brownlee, Clark, Feleciano, Gooch, Harrington, Huelskamp, Pugh, Tyson.

Absent or not voting: Hardenburger.

The Conference Committee report was adopted.

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2489, submits the following report:

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

By striking all after the enacting clause and inserting in lieu thereof the following material
to read as follows:

``Section 1. (a) For the fiscal years ending June 30, 1999, June 30, 2000, and June 30,
2001, appropriations are hereby made, restrictions and limitations are hereby imposed, and
transfers, fees, receipts, disbursements, and acts incidental to the foregoing are hereby
directed or authorized as provided in this act.

(b) The agencies named in this act are hereby authorized to initiate and complete the
capital improvement projects specified and authorized by this act or for which appropriations
are made by this act, subject to the restrictions and limitations imposed by this act.

(c) This act shall be known and may be cited as the omnibus appropriation act of 1999
and shall constitute the omnibus reconciliation spending limit bill for the 1999 regular
session of the legislature for purposes of subsection (a) of K.S.A. 75-6702 and amendments
thereto.

(d) The appropriations made by this act shall not be subject to the provisions of K.S.A.
46-155 and amendments thereto.

Sec. 2.

DEPARTMENT OF SOCIAL AND REHABILITATION SERVICES (a) There is appropriated for the above agency from the state general fund for the fiscal
year or years specified, the following:

Community based services

For the fiscal year ending June 30, 2000

$1,200,000

Youth services aid and assistance

For the fiscal year ending June 30, 1999	$6,428,207
For the fiscal year ending June 30, 2000	$4,670,000

Other medical assistance

For the fiscal year ending June 30, 1999	$4,386,100
For the fiscal year ending June 30, 2000	$10,808,100

Mental health and retardation services aid and assistance and state institutions operations

For the fiscal year ending June 30, 2000

$357,143

Nursing facilities quality enhancement wage pass-through pursuant to 1999 Senate Bill No.
126

For the fiscal year ending June 30, 2000

$224,402

Provided, That all expenditures from the nursing facilities quality enhancement wage pass-
through pursuant to 1999 Senate Bill No. 126 account shall be made pursuant to an appli-
cation and selection process for prioritization which is hereby authorized and directed to be
prescribed in policies adopted by the secretary of aging and, with respect to expenditures
from the nursing facilities quality enhancement wage pass-through pursuant to 1999 Senate
Bill No. 126 account by the department of social and rehabilitation services, which shall be
administered by the department of social and rehabilitation services in accordance with the
policies adopted by the secretary of aging.

(b) On the effective date of this act, of the $1,849,723 appropriated for the above agency
for the fiscal year ending June 30, 1999, by section 116(a) of 1999 Senate Bill No. 325 from
the state general fund in the mental health and retardation services aid and assistance and
state institutions operations account, the sum of $454,938 is hereby lapsed.

(c) On the effective date of this act, of the $49,982,374 appropriated for the above agency
for the fiscal year ending June 30, 1999, by section 120(a) of chapter 203 of the 1998 Session
Laws of Kansas from the state general fund in the cash assistance account, the sum of
$190,000 is hereby lapsed.

(d) On July 1, 1999, of the $53,328,276 appropriated for the above agency for the fiscal
year ending June 30, 2000, by section 55(a) of 1999 Senate Bill No. 325 from the state
general fund in the cash assistance account, the sum of $190,000 is hereby lapsed.

(e) In addition to the other purposes for which expenditures may be made by the above
agency from the children's health care programs fund for fiscal year 2000, expenditures may
be made by the above agency from the children's health care programs fund for fiscal year
2000 for the following specified purposes subject to the expenditure limitations prescribed
therefor:

Children's health care programs fund--home and community based services for mental retardation

$2,000,000

Children's health care programs fund--home and community based services for physically disabled

$1,800,000

Provided, That all expenditures by the above agency from the children's health care pro-
grams fund for fiscal year 2000 from the children's health care programs fund--home and
community based services for physically disabled account shall be in addition to any ex-
penditure limitation imposed on the children's health care programs fund for fiscal year
2000.

(f) In addition to the other purposes for which expenditures may be made by the de-
partment of social and rehabilitation services from the state operations account of the state
general fund for the fiscal year ending June 30, 2000, as authorized by section 55(a) of 1999
Senate Bill No. 325 or by this or other appropriation act of the 1999 regular session of the
legislature, expenditures shall be made by the department of social and rehabilitation serv-
ices from the state operations account of the state general fund for fiscal year 2000 to
conduct a review of, and to adopt appropriate amendments to, the rules and regulations
and the administrative policies of the department of social and rehabilitation services for
the purposes of clarifying the definitions of children in need of care, especially in the areas
relating to protective custody: Provided, That the secretary of social and rehabilitation serv-
ices shall submit a report to the legislature by January 10, 2000, setting forth the results of
such study and the amendments adopted to the rules and regulations and the administrative
policies of the department of social and rehabilitation service with respect thereto.

(g) On July 1, 1999, of the $89,635,746 appropriated for the above agency for the fiscal
year ending June 30, 2000, by section 55(a) of 1999 Senate Bill No. 325 from the state
general fund in the state operations account, the sum of $38,701 is hereby lapsed.

(h) On July 1, 1999, the position limitation established by section 90(a) of 1999 Senate
Bill No. 325 for the department of social and rehabilitation services is hereby decreased
from 4,176.0 to 4,170.5.

(i) On the effective date of this act, the amounts specified in section 120(c) of chapter
203 of the 1998 Session Laws of Kansas as being included in the mental health and retar-
dation services aid and assistance and state institutions operations account of the state gen-
eral fund for the following institutions are hereby changed to the amounts specified, but
expenditures from the mental health and retardation services aid and assistance and state
institutions operations account of the state general fund for any such institution shall not be
limited to, or be required to be made in, the amount listed for the institution, as follows:
(1) The amount for Kansas neurological institute is hereby decreased from $10,198,356 to
$10,192,251; (2) the amount for Larned state hospital is hereby decreased from $8,677,519
to $7,823,934; (3) the amount for Osawatomie state hospital is hereby decreased from
$3,693,609 to $2,593,609; (4) the amount for Parsons state hospital and training center is
hereby increased from $8,683,907 to $8,686,419; and (5) the amount for Rainbow mental
health facility is hereby decreased from $2,391,500 to $2,177,740.

(j) On the effective date of this act, the expenditure limitation established by section
116(o) of 1999 Senate Bill No. 325 on the Larned state hospital fee fund is hereby increased
from $2,769,829 to $3,619,829.

(k) On the effective date of this act, the expenditure limitation established by section
116(p) of 1999 Senate Bill No. 325 on the Osawatomie state hospital fee fund is hereby
increased from $3,152,948 to $4,252,948.

(l) On the effective date of this act, the expenditure limitation established by section
116(r) of 1999 Senate Bill No. 325 on the Rainbow mental health facility fee fund is hereby
increased from $1,036,361 to $1,236,361.

(m) On July 1, 1999, the amounts specified in section 55(c) of 1999 Senate Bill No. 325
as being included in the mental health and retardation services aid and assistance and state
institutions operations account of the state general fund for the following institutions are
hereby changed to the amounts specified, but expenditures from the mental health and
retardation services aid and assistance and state institutions operations account of the state
general fund for any such institution shall not be limited to, or be required to be made in,
the amount listed for the institution, as follows: (1) The amount for Kansas neurological
institute is hereby decreased from $7,931,823 to $7,902,731; (2) the amount for Larned
state hospital is hereby increased from $11,768,273 to $11,799,364; (3) the amount for
Osawatomie state hospital is hereby decreased from $5,988,178 to $5,971,632; (4) the
amount for Parsons state hospital and training center is hereby increased from $5,943,156
to $5,950,211; and (5) the amount for Rainbow mental health facility is hereby increased
from $1,583,476 to $1,586,011.

(n) On July 1, 1999, the position limitations established by section 90(a) of 1999 Senate
Bill No. 325 for the following agencies are hereby increased or decreased, as specified, to
the position limitations specified for such agencies: (1) The position limitation for Larned
state hospital is hereby decreased from 767.6 to 766.6; (2) the position limitation for Osa-
watomie state hospital is hereby decreased from 483.4 to 482.4; (3) the position limitation
for Parsons state hospital and training center is hereby decreased from 522.0 to 521.0; and
(4) the position limitation for Rainbow mental health facility is hereby decreased from 137.4
to 136.4.

(o) In addition to the other purposes for which expenditures may be made by the de-
partment of social and rehabilitation services from any moneys appropriated from the state
general fund or any special revenue fund for the fiscal year ending June 30, 2000, as au-
thorized by this or other appropriation act of the 1999 regular session of the legislature,
expenditures shall be made by the department of social and rehabilitation services from any
such moneys appropriated for fiscal year 2000 for the receipt, crediting and disbursement
of moneys received by the department of social and rehabilitation services for payments of
support pursuant to a rule or administrative order issued by the Kansas supreme court,
which is hereby authorized to be issued by the Kansas supreme court, directing payments
of support, which are made pursuant to any court order entered in this state regardless of
the date of the order, to be made to a central unit for the collection and disbursement of
support payments, notwithstanding the provisions of any statute to the contrary.

(p) On July 1, 2000, the director of accounts and reports shall transfer any unencumbered
balance in the children's health care programs fund--home and community based services
for mental retardation account of the children's health care programs fund to the critical
emergency services for CDDOS fund.

(q) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year or years specified, all moneys now or hereafter lawfully credited
to and available in such fund or funds, except that expenditures other than refunds author-
ized by law shall not exceed the following:

Critical emergency services for CDDOS fund

For the fiscal year ending June 30, 2001

Sec. 3.

DEPARTMENT ON AGING (a) There is appropriated for the above agency from the state general fund for the fiscal
year or years specified, the following:

Administration

For the fiscal year ending June 30, 2000

$423,250

Long term care

For the fiscal year ending June 30, 1999	$200,000
For the fiscal year ending June 30, 2000	$840,000

Nursing facilities quality enhancement wage pass-through pursuant to 1999 Senate Bill No.
126

For the fiscal year ending June 30, 2000

$1,725,000

Provided, That all expenditures from the nursing facilities quality enhancement wage pass-
through pursuant to 1999 Senate Bill No. 126 account shall be made to pursuant to an
application and selection process for prioritization which is hereby authorized and directed
to be prescribed in policies adopted by the secretary of aging and, with respect to expend-
itures from the nursing facilities quality enhancement wage pass-through pursuant to 1999
Senate Bill No. 126 account by the department on aging, which shall be administered by
the department on aging in accordance with the policies adopted by the secretary of aging.

(b) On or before July 15, 1999, and on the 15th day of each month thereafter during the
fiscal year ending June 30, 2000, the secretary of aging shall certify to the director of the
budget the total amount of moneys which were received by the department on aging during
the preceding month from the federal government and which were deposited in the state
treasury to the credit of the medicaid fund--federal. During the fiscal year ending June 30,
2000, after receiving one or more certifications from the secretary of aging under this sub-
section, the director of the budget may certify an amount or amounts to the director of
accounts and reports to be transferred from the medicaid fund--federal of the department
on aging to the state general fund for the purpose of reimbursing the state general fund for
the amount appropriated for the department on aging from the state general fund in the
administration account. Upon receiving each such certification from the director of the
budget, the director of accounts and reports shall transfer the amount or amounts certified
from the medicaid fund--federal of the department on aging to the state general fund on
the dates specified by the director of the budget.

(c) On July 1, 1999, the position limitation established by section 90(a) of 1999 Senate
Bill No. 325 for the department on aging is hereby increased from 155.8 to 157.8.

Sec. 4.

DEPARTMENT OF TRANSPORTATION (a) On the effective date of this act, the expenditure limitation established by section
136(a) of 1999 Senate Bill No. 325 on the agency operations account of the state highway
fund is hereby decreased from $198,435,474 to $198,348,984.

(b) On July 1, 1999, the position limitation established by section 90(a) of 1999 Senate
Bill No. 325 for the department of transportation is hereby increased from 3,118.5 to
3,219.5.

(c) On July 1, 1999, the expenditure limitation established by section 89(b) of 1999 Senate
Bill No. 325 on the agency operations account of the state highway fund is hereby increased
from $205,226,194 to $212,487,075.

(d) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year or years specified, all moneys now or hereafter lawfully credited
to and available in such fund or funds, except that expenditures other than refunds author-
ized by law shall not exceed the following:

Transportation revolving fund

For the fiscal year ending June 30, 2000

No limit

Highway bond proceeds fund

For the fiscal year ending June 30, 2000

No limit

Coordinated public transportation assistance fund

For the fiscal year ending June 30, 2000

No limit

(e) On July 1, 1999, the expenditure limitation established by section 89(b) of 1999 Senate
Bill No. 325 on the payments for city connecting links account of the state highway fund is
hereby increased from $2,240,000 to No limit.

(f) In addition to the other purposes for which expenditures may be made by the de-
partment of transportation from the state highway fund or from any other special revenue
fund for the fiscal year ending June 30, 2000, as authorized by section 89 of 1999 Senate
Bill No. 325 or by this or other appropriation act of the 1999 regular session of the legis-
lature, expenditures shall be made by the department of transportation from the state high-
way fund or from any other special revenue fund for fiscal year 2000 to conduct a study to
be conducted by personnel of the department of transportation or by a qualified consultant
pursuant to a contract entered into therefor, which shall review and study the flooding
history and state highway construction history in the flood plain vicinity of the junction of
U.S. highway 54 and U.S. highway 69 northeast of Fort Scott, Kansas: Provided, That such
study shall include study of bridge number 5 on U.S. highway 69 in Bourbon county in
conjunction with the surrounding flood plain: Provided further, That such study shall include
a study of the relationship of flooding to existing highway embankments and, in consultation
with the chief engineer of the division of water resources of the Kansas department of
agriculture regarding current flood control and other surface water standards of the division
of water resources of the Kansas department of agriculture, the development of proposals
for lessening flood severity in the area: And provided further, That the secretary of trans-
portation shall submit a report to the legislature by January 10, 2000, setting forth the results
of such study and any recommendations or proposals that have been developed from such
study.

(g) In addition to the other purposes for which expenditures may be made by the de-
partment of transportation from the state highway fund or from any other special revenue
fund for the fiscal year ending June 30, 2000, as authorized by section 89 of 1999 Senate
Bill No. 325 or by this or other appropriation act of the 1999 regular session of the legis-
lature, expenditures shall be made by the department of transportation from the state high-
way fund or from any other special revenue fund for fiscal year 2000 to conduct a study to
be conducted by personnel of the department of transportation or by a qualified consultant
pursuant to a contract entered into therefor, which shall review and study the accident
history of the new section of K-96 from northwest of Maize, Kansas, to south of Hutchinson,
Kansas: Provided, That such study shall include the development of proposals for any
changes or modifications to such new section of K-96 which may address the accident history
or otherwise provide improvements which are intended to reduce the incidence of highway
accidents on such new section of K-96: Provided further, That the secretary of transportation
shall submit a report to the legislature by January 10, 2000, setting forth the results of such
study and any recommendations or proposals that have been developed from such study.

(h) In addition to the other purposes for which expenditures may be made by the de-
partment of transportation from the state highway fund for the fiscal years ending June 30,
2000, or June 30, 2001, as authorized by section 89 of 1999 Senate Bill No. 325, or by this
or other appropriation act of the 1999 regular session of the legislature or by any appropri-
ation act of the 2000 regular session of the legislature, expenditures shall be made by the
department of transportation from the state highway fund for fiscal year 2000 or fiscal year
2001 for the purpose of paying all expenses associated with the authorizing and issuing of
bonds authorized by 1999 House Bill No. 2071: Provided, That, all contracts for the issuance
and sale of such bonds including contracts with financial advisors, attorneys and such other
professional services related to the issuance and sale of such bonds shall be entered into
pursuant to a competitive selection process.

Sec. 5.

KANSAS LOTTERY (a) The director of accounts and reports shall not make any transfers from the lottery
operating fund of the Kansas lottery to the state general fund that are prescribed to be made
by section 45(e) of 1999 Senate Bill No. 325 and the executive director shall not make any
of the calculations, determinations and certifications that are prescribed to be made by
section 45(e) of 1999 Senate Bill No. 325: Provided, That, in lieu thereof, the director of
accounts and reports shall make the transfers from the lottery operating fund of the Kansas
lottery to the state general fund that are prescribed to be made by subsection (b) of this
section and the executive director of the Kansas lottery shall perform the calculations, de-
terminations and certifications prescribed by subsection (b) of this section.

(b) On June 15, 2000, the executive director of the Kansas lottery shall determine whether
the total of all transfers during the fiscal year ending June 30, 2000, from the lottery oper-
ating fund to the state gaming revenues fund as of June 15, 2000, equals $59,400,000 or
more: Provided, That, if the total amount of such transfers is less than $59,400,000 as of
June 15, 2000, then the executive director of the Kansas lottery shall compute the difference
between the projected total amount of such transfers during fiscal year 2000 and the actual
total of the transfers as of June 15, 2000, and, on June 15, 2000, the executive director of
the Kansas lottery shall certify to the director of accounts and reports the amount equal to
the difference between projected and actual total transfers so computed: Provided further,
That, on or after receiving such certification and not later than June 20, 2000, the director
of accounts and reports shall transfer the amount certified from the lottery operating fund
to the state general fund for the purpose of enhancing revenues and providing additional
moneys for the state general fund if lottery sales fall below a projected total of $198,000,000
during the fiscal year 2000 period for determination of lottery transfers and the total of the
actual transfers to the state gaming revenues fund do not equal or exceed the projected total
of $59,400,000 during fiscal year 2000 by June 15, 2000: Provided, however, That, notwith-
standing the amount certified by the executive director of the Kansas lottery to the director
of accounts and reports pursuant to this subsection, the amount transferred from the lottery
operating fund to the state general fund shall not exceed $732,560.

Sec. 6.

KANSAS PUBLIC EMPLOYEES RETIREMENT SYSTEM (a) On the effective date of this act, the expenditure limitation established by section
137(a) of 1999 Senate Bill No. 325 on expenditures from the Kansas public employees
retirement fund for the technology project is hereby decreased from $2,250,000 to $398,745.

(b) On July 1, 1999, the expenditure limitation established by section 5(e) of chapter 202
of the 1998 Session Laws of Kansas on expenditures from the Kansas public employees
retirement fund for the technology project is hereby increased from $600,000 to $2,451,255.

(c) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year or years specified, all moneys now or hereafter lawfully credited
to and available in such fund or funds, except that expenditures other than refunds author-
ized by law shall not exceed the following:

Group insurance reserve fund

For the fiscal year ending June 30, 2000

No limit

Optional death benefit plan reserve fund

For the fiscal year ending June 30, 2000

No limit

Sec. 7.

DEPARTMENT OF EDUCATION (a) There is appropriated for the above agency from the state general fund for the fiscal
year or years specified, the following:

School district juvenile detention facilities and Flint Hills job corps center grants

For the fiscal year ending June 30, 1999	$263,000
For the fiscal year ending June 30, 2000	$1,277,480

Communities in schools

For the fiscal year ending June 30, 2000

$125,000

Operating expenditures (including official hospitality)

For the fiscal year ending June 30, 2000

$88,000

Study of school district organization

For the fiscal year ending June 30, 2000

$250,000

Provided, That expenditures shall be made from the study of school district organization
account for a comprehensive study of the organization of school districts: Provided further,
That the state board of education shall present the findings of the study and any recom-
mendations to the house of representatives and senate standing committees on education
on or before January 15, 2001: And provided further, That expenditures from this account
shall not be subject to the competitive bidding requirements of K.S.A. 1998 Supp. 75-3739
and amendments thereto: And provided further, That any unencumbered balance in excess
of $100 as of June 30, 2000, in the study of school district organization account is hereby
reappropriated to the study of school district organization account for fiscal year 2001.

School safety hotline

For the fiscal year ending June 30, 1999

$75,000

Provided, That any unencumbered balance in the school safety hotline account in excess of
$100 as of June 30, 1999, is hereby reappropriated for fiscal year 2000: Provided further,
That all expenditures from the school safety hotline account shall be for the establishment
and operation of a school safety hotline staffed by officers and employees of the Kansas
highway patrol continuously, 24 hours each day and seven days per week: And provided
further, That expenditures from this account shall be used for the operation, promotion and
marketing of the program: And provided further, That expenditures may be made from this
account for the payment of overtime compensation of officers and employees of the Kansas
highway patrol who staff the hotline.

(b) On July 1, 1999, of the $1,763,838,086 appropriated for the above agency for the
fiscal year ending June 30, 2000, by section 57(a) of 1999 Senate Bill No. 325 from the state
general fund in the general state aid account, the sum of $8,933,000 is hereby lapsed.

(c) On July 1, 1999, of the $76,890,000 appropriated for the above agency for the fiscal
year ending June 30, 2000, by section 57(a) of 1999 Senate Bill No. 325 from the state
general fund in the supplemental general state aid account, the sum of $321,000 is hereby
lapsed.

(d) On July 1, 1999, of the $91,696,756 appropriated for the above agency for the fiscal
year ending June 30, 2000, by section 57(a) of 1999 Senate Bill No. 325 from the state
general fund in the KPERS--employer contributions account, the sum of $240,435 is hereby
lapsed.

(e) On July 1, 1999, the expenditure limitation established by section 57(a) of 1999 Senate
Bill No. 325 on the expenditures from the reappropriated balance in the KPERS--employer
contributions account is hereby increased from $733,969 to $1,233,969.

(f) On July 1, 1999, the matching requirement imposed on school districts by section
57(a) of 1999 Senate Bill No. 325 for purposes of matching grants from the state general
fund for the parent education program is hereby increased from an amount which is equal
to not less than 50% of the grant to an amount that is equal to not less than 75% of the
grant.

(g) All expenditures from the children's health care programs fund--parent education
program account of the children's health care programs fund for the fiscal year ending June
30, 2000, as prescribed in section 57(g) of 1999 Senate Bill No. 325, shall be matched by
the school district receiving the grant in an amount which is equal to not less than 75% of
the grant.

(h) On July 1, 1999, the limitation imposed by section 57(a) of 1999 Senate Bill No. 325
on the amount of moneys in the unencumbered balance in the general state aid account of
the state general fund that, in excess of which, an amount of not to exceed $2,000,000 shall
be transferred to the inservice education aid account of the state general fund of the de-
partment of education to be used to fund approved inservice education programs as au-
thorized by K.S.A. 72-9601 et seq., and amendments thereto, is hereby increased from
$29,750,914 to $37,795,914.

(i) Expenditures made by the department of education from the school district capital
improvements fund as provided for in section 57(b) of 1999 Senate Bill No. 325 shall only
be made for the payment of general obligation bonds approved by the voters under the
authority of K.S.A. 72-6761 and amendments thereto.

(j) On July 1, 1999, of the $9,218,061 appropriated for the above agency for the fiscal
year ending June 30, 2000, by section 57(a) of 1999 Senate Bill No. 325 from the state
general fund in the operating expenditures (including official hospitality) account, the sum
of $214,363 is hereby lapsed.

(k) On July 1, 1999, the $19,685,124 appropriated for the above agency for the fiscal year
ending June 30, 2000, by section 57(a) of 1999 Senate Bill No. 325 from the state general
fund in the postsecondary aid for vocational education account, is hereby lapsed.

(l) On July 1, 1999, the $1,100,000 appropriated for the above agency for the fiscal year
ending June 30, 2000, by section 57(a) of 1999 Senate Bill No. 325 from the state general
fund in the adult basic education account, is hereby lapsed.

(m) On July 1, 1999, the $45,870,378 appropriated for the above agency for the fiscal
year ending June 30, 2000, by section 57(a) of 1999 Senate Bill No. 325 from the state
general fund in the community college credit hour state aid account, is hereby lapsed.

(n) On July 1, 1999, the $13,750,973 appropriated for the above agency for the fiscal year
ending June 30, 2000, by section 57(a) of 1999 Senate Bill No. 325 from the state general
fund in the community college out-district state aid entitlement account, is hereby lapsed.

(o) On July 1, 1999, the $2,642,795 appropriated for the above agency for the fiscal year
ending June 30, 2000, by section 57(a) of 1999 Senate Bill No. 325 from the state general
fund in the community college general state aid account, is hereby lapsed.

(p) On July 1, 1999, the $450,000 appropriated for the above agency for the fiscal year
ending June 30, 2000, by section 57(a) of 1999 Senate Bill No. 325 from the state general
fund in the technology equipment at community colleges and Washburn university account,
is hereby lapsed.

(q) On July 1, 1999, the $500,000 appropriated for the above agency for the fiscal year
ending June 30, 2000, by section 57(a) of 1999 Senate Bill No. 325 from the state general
fund in the vocational education capital outlay aid account, is hereby lapsed.

(r) On July 1, 1999, the appropriation of all moneys credited to and available in the GED
credentials processing fees fund for the fiscal year ending June 30, 2000, by section 57(b)
of 1999 Senate Bill No. 325 is hereby lapsed.

(s) On July 1, 1999, the appropriation of all moneys credited to and available in the
proprietary school fee fund for the fiscal year ending June 30, 2000, by section 57(b) of
1999 Senate Bill No. 325 is hereby lapsed.

(t) On July 1, 1999, the appropriation of all moneys credited to and available in the adult
basic education--federal fund for the fiscal year ending June 30, 2000, by section 57(b) of
1999 Senate Bill No. 325 is hereby lapsed.

(u) On July 1, 1999, the appropriation of all moneys credited to and available in the truck
driver training fund for the fiscal year ending June 30, 2000, by section 57(b) of 1999 Senate
Bill No. 325 is hereby lapsed.

(v) On July 1, 1999, the appropriation of all moneys credited to and available in the
economic development initiatives fund of the department of education for the fiscal year
ending June 30, 2000, by section 57(b) of 1999 Senate Bill No. 325 is hereby lapsed.

(w) On July 1, 1999, the appropriation of all moneys credited to and available in the
tuition and fee waiver reimbursement fund for the fiscal year ending June 30, 2000, by
section 57(b) of 1999 Senate Bill No. 325 is hereby lapsed.

(x) On July 1, 1999, the appropriation of all moneys credited to and available in the
economic development initiatives fund of the above agency for the fiscal year ending June
30, 2000, by section 57(b) of 1999 Senate Bill No. 325 is hereby lapsed.

(y) On July 1, 1999, the $2,000,000 appropriated for the above agency for the fiscal year
ending June 30, 2000, by section 57(d) of 1999 Senate Bill No. 325 from the economic
development initiatives fund of the above agency in the vocational education capital outlay
aid account, is hereby lapsed.

(z) On July 1, 1999, the $6,716,110 appropriated for the above agency for the fiscal year
ending June 30, 2000, by section 57(d) of 1999 Senate Bill No. 325 from the economic
development initiatives fund of the above agency in the postsecondary aid for vocational
education account, is hereby lapsed.

(aa) On July 1, 1999, the $200,000 appropriated for the above agency for the fiscal year
ending June 30, 2000, by section 57(d) of 1999 Senate Bill No. 325 from the economic
development initiatives fund of the above agency in the technology innovation and internship
account, is hereby lapsed.

(bb) The director of accounts and reports shall not make the transfers of $2,226,786 from
the Kansas economic development endowment account of the state economic development
initiatives fund of the department of commerce and housing to the economic development
initiatives fund of the department of education which were directed to be made on Septem-
ber 15, 1999, December 15, 1999, April 15, 2000, and on June 15, 2000, by section 57(e)
of 1999 Senate Bill No. 325.

(cc) In addition to the other purposes for which expenditures may be made from the
children's health care programs fund for fiscal year 2000, expenditures may be made by the
above agency from the children's health care programs fund for fiscal year 2000 for the
following specified purposes subject to the expenditure limitations prescribed therefor:

Children's health care programs fund--national geographic society education foundation endowment

$250,000

Provided, That all expenditures by the above agency from the children's health care pro-
grams fund for fiscal year 2000 from the children's health care programs fund--national
geographic society education foundation endowment account shall be in addition to any
expenditure limitations imposed on the children's health care programs fund for fiscal year
2000.

Children's health care programs fund--experimental wraparound Kansasproject

$500,000

Provided, That all expenditures by the above agency from the children's health care pro-
grams fund for fiscal year 2000 from the children's health care programs fund--experimental
wraparound Kansas project account shall be in addition to any expenditure limitations im-
posed on the children's health care programs fund for fiscal year 2000: Provided further,
That all such expenditures from this account shall be for grants awarded by the state board
of education to school districts applying therefor to implement mental health support serv-
ices in the school setting that focus on violence prevention: And provided further That, in
order to be eligible for a grant from this account, a school district must show evidence of a
collaborative effort with a local community mental health center: And provided further,
That expenditures from the children's health care programs fund--experimental wrapa-
round Kansas project account for each such grant shall be matched by the school district in
an amount which is equal to not less than 25% of the grant.

Sec. 8.

STATE BOARD OF INDIGENTS' DEFENSE SERVICES (a) There is appropriated for the above agency from the state general fund for the fiscal
year or years specified, the following:

Operating expenditures

For the fiscal year ending June 30, 2000

$291,107

(b) In addition to the other purposes for which expenditures may be made by the state
board of indigents' defense services from the indigents' defense services fund for the fiscal
year ending June 30, 2000, as authorized by section 35(b) of 1999 Senate Bill No. 325,
expenditures may be made by the state board of indigents' defense services for fiscal year
2000 from the indigents' defense services fund for fiscal year 2000, for salaries and wages
of attorneys who are officers or employees of the state board of indigents' defense services.

Sec. 9.

JUDICIAL BRANCH (a) There is appropriated for the above agency from the state general fund for the fiscal
year or years specified, the following:

Judiciary operations

For the fiscal year ending June 30, 2000

$122,936

Grant to Kansas legal services, inc.

For the fiscal year ending June 30, 2000

$150,000

Provided, That expenditures shall be made from the grant to Kansas legal services, inc.
account for statewide foster care legal services, including guardian ad litem and other legal
representation services.

(b) In addition to the authorization and the other limitations and guidelines prescribed
in the provisos to the judiciary operations account of the state general fund by section 36(a)
of 1999 Senate Bill No. 325 for expenditures from the judiciary operations account for
additional amounts of compensation for the fiscal year ending June 30, 2000, for the chief
justice and other justices of the supreme court, the chief judge and other judges of the court
of appeals, district judges who are designated as administrative judges, district judges who
are not designated as administrative judges and district magistrate judges, expenditures from
the judiciary operations account for fiscal year 2000 for an additional amount of compen-
sation for any justice of the supreme court, any judge of the court of appeals, or any district
judge shall not exceed an additional annual amount of $3,218 for any such justice of the
supreme court, judge of the court of appeals or district judge and expenditures from the
judiciary operations account for fiscal year 2000 for an additional amount of compensation
for any district magistrate judge shall not exceed an additional annual amount of $1,609.

Sec. 10.

ATTORNEY GENERAL (a) In addition to the other purposes for which expenditures may be made by the above
agency from the children's health care programs fund for fiscal year 2000, expenditures may
be made by the above agency from the children's health care programs fund for fiscal year
2000 from the following specified purposes subject to the expenditure limitations prescribed
therefor:

Children's health care programs fund--DARE (Drug Abuse ResistanceEducation) coordinator, support staff, training and programexpenditures

$165,300

Provided, That all expenditures by the above agency from the children's health care pro-
grams fund for fiscal year 2000 from the children's health care programs fund--DARE
(Drug Abuse Resistance Education) coordinator, support staff, training and program ex-
penditures account shall be in addition to any expenditure limitation imposed on the chil-
dren's health care programs fund for fiscal year 2000.

(b) On July 1, 1999, the position limitation established by section 90(a) of 1999 Senate
Bill No. 325 for the attorney general is hereby increased from 87.8 to 89.8.

Sec. 11.

DEPARTMENT OF REVENUE (a) On the effective date of this act, the expenditure limitation established by section
110(a) of 1999 Senate Bill No. 325 on the division of vehicles operating fund is hereby
increased from $30,624,572 to $30,649,572.

(b) There is appropriated for the above agency from the state general fund for the fiscal
year or years specified, the following:

Operating expenditures

For the fiscal year ending June 30, 2000

$4,311

(c) On July 1, 1999, the position limitation established by section 90(a) of 1999 Senate
Bill No. 325 for the department of revenue is hereby decreased from 1,182.5 to 1,180.0.

(d) On July 1, 1999, the expenditure limitation established by section 44(b) of 1999 Senate
Bill No. 325 on the division of vehicles operating fund is hereby increased from $36,100,246
to $36,155,674.

(e) On July 1, 1999, the expenditure limitation established by section 44(b) of 1999 Senate
Bill No. 325 on the salaries and wages account of the division of vehicles operating fund is
hereby decreased from $18,955,496 to $17,144,750.

Sec. 12.

DEPARTMENT OF ADMINISTRATION (a) On July 1, 1999, the position limitation established by section 90(a) of 1999 Senate
Bill No. 325 for the department of administration is hereby increased from 884.4 to 889.4.

(b) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year or years specified, all moneys now or hereafter lawfully credited
to and available in such fund or funds, except that expenditures other than refunds author-
ized by law shall not exceed the following:

Public school districts benefit fund

For the fiscal year ending June 30, 2000

No limit

(c) During the fiscal years ending June 30, 1999, and June 30, 2000, upon certification
by the secretary of administration to the director of accounts and reports that the unencum-
bered balance in the construction defects recovery fund is insufficient to pay an amount
that is necessary to finance expenses related to efforts by the state of Kansas to recover
damages incidental to construction defects on capital projects involving state facilities, the
director of accounts and reports shall transfer an amount equal to the insufficient amount
from the architectural services recovery fund to the construction defects recovery fund:
Provided, That the total of all such amounts transferred pursuant to this subsection during
fiscal year 1999 shall not exceed $200,000 and the total of all amounts transferred pursuant
to this subsection during fiscal year 2000 shall not exceed $200,000.

(d) On the effective date of this act, the expenditure limitation established by section
109(b) of 1999 Senate Bill No. 325 on the architectural services recovery fund is hereby
increased from $1,247,596 to $1,271,856.

(e) On July 1, 1999, the expenditure limitation established by section 42(b) of 1999 Senate
Bill No. 325 on the architectural services recovery fund is hereby increased from $1,255,164
to $1,497,412.

(f) On July 1, 1999, of the $18,043,940 appropriated for the above agency for the fiscal
year ending June 30, 2000, by section 42(a) of 1999 Senate Bill No. 325 from the state
general fund in the department of administration operations account, the sum of $690 is
hereby lapsed.

(g) There is appropriated for the above agency from the state general fund for the fiscal
year or years specified, the following:

Cedar Crest repair and renovation

For the fiscal year ending June 30, 1999

$986,627

Judicial center carpet replacement

For the fiscal year ending June 30, 2000

$64,000

Judicial center renovation planning

For the fiscal year ending June 30, 2000

$95,000

Statehouse committee room planning, remodel and relocation

For the fiscal year ending June 30, 2000

$400,000

Memorial hall security

For the fiscal year ending June 30, 2000

$190,000

(h) In addition to the purposes for which expenditures may be made by the above agency
from moneys appropriated in any special revenue funds or any account of the state general
fund for the above agency for the fiscal year ending June 30, 2000, by this or other appro-
priation act of the 1999 regular session of the legislature, expenditures may be made by the
above agency from any such special revenue fund or account of the state general fund for
fiscal year 2000 for the purpose of making emergency repairs to any facility that is under
the charge, care, management or control of the department of administration as provided
by law: Provided, That the secretary of administration shall make a full report on such repairs
and expenditures to the joint committee on state building construction at the joint com-
mittee's next scheduled meeting.

(i) In addition to the purposes for which expenditures may be made by the above agency
from the state buildings operating fund for the fiscal year ending June 30, 2000, as authorized
by section 42(b) of 1999 Senate Bill No. 325, expenditures may be made by the above
agency from the state buildings operating fund for fiscal year 2000 for relocation of blind
services and the Kansas industries for the blind.

(j) On July 1, 1999, the expenditure limitation established by section 42(b) of 1999 Senate
Bill No. 325 on the salaries and wages and other operating expenditures account of the
cafeteria benefits fund is hereby increased from $2,242,608 to $2,322,792.

Sec. 13.

EMPORIA STATE UNIVERSITY (a) There is appropriated for the above agency from the state general fund for the fiscal
year or years specified, the following:

Operating expenditures (including official hospitality)

For the fiscal year ending June 30, 1999	$80,726
For the fiscal year ending June 30, 2000	$85,301

(b) On the effective date of this act, the expenditure limitation established by section
122(b) of 1999 Senate Bill No. 325 on the general fees fund is hereby decreased from
$8,089,533 to $8,008,807.

(c) On July 1, 1999, the expenditure limitation established by section 67(b) of 1999 Senate
Bill No. 325 on the general fees fund is hereby decreased from $8,274,558 to $8,189,257.

(d) In addition to the other purposes for which expenditures may be made by the above
agency from the restricted fees fund for the fiscal year ending June 30, 2000, expenditures
may be made by the above agency from the appropriate account or accounts of the restricted
fees fund for the following capital improvement project, subject to the expenditure limita-
tions prescribed therefor:

Plan, construct, and equip--student recreation center

$135,000

Sec. 14.

UNIVERSITY OF KANSAS MEDICAL CENTER (a) On July 1, 1999, of the $96,390,128 appropriated for the above agency for the fiscal
year ending June 30, 2000, by section 70(a) of 1999 Senate Bill No. 325 from the state
general fund in the operating expenditures (including official hospitality) account, the sum
of $104,644 is hereby lapsed.

(b) On July 1, 1999, the expenditure limitation established by section 70(b) of 1999 Senate
Bill No. 325 on the general fees fund is hereby increased from $10,057,878 to $10,095,528.

Sec. 15.

PITTSBURG STATE UNIVERSITY (a) On July 1, 1999, of the $30,963,018 appropriated for the above agency for the fiscal
year ending June 30, 2000, by section 68(a) of 1999 Senate Bill No. 325 from the state
general fund in the operating expenditures (including official hospitality) account, the sum
of $16,785 is hereby lapsed.

(b) On July 1, 1999, the expenditure limitation established by section 68(b) of 1999 Senate
Bill No. 325 on the general fees fund is hereby increased from $10,481,538 to $10,484,945.

Sec. 16.

FORT HAYS STATE UNIVERSITY (a) On July 1, 1999, of the $29,877,753 appropriated for the above agency for the fiscal
year ending June 30, 2000, by section 63(a) of 1999 Senate Bill No. 325 from the state
general fund in the operating expenditures (including official hospitality) account, the sum
of $68,772 is hereby lapsed.

(b) On July 1, 1999, the expenditure limitation established by section 63(b) of 1999 Senate
Bill No. 325 on the general fees fund is hereby increased from $7,823,325 to $7,892,097.

(c) On the effective date of this act, of the $100,196 appropriated for the above agency
for the fiscal year ending June 30, 1999, by section 119(a) of 1999 Senate Bill No. 325 from
the state general fund in the operating expenditures (including official hospitality) account,
the sum of $68,291 is hereby lapsed.

(d) On the effective date of this act, the expenditure limitation established by section
119(b) of 1999 Senate Bill No. 325 on the general fees fund is hereby increased from
$7,895,347 to $7,963,638.

Sec. 17.

UNIVERSITY OF KANSAS (a) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year or years specified, all moneys now or hereafter lawfully credited
to and available in such fund or funds, except that expenditures other than refunds author-
ized by law shall not exceed the following:

Ellsworth hall renovation fund

For the fiscal year ending June 30, 2000

No limit

Provided, That the university of Kansas may make expenditures from the Ellsworth hall
renovation fund for the project to renovate Ellsworth hall in addition to the expenditure of
other moneys appropriated therefor: Provided, however, That expenditures from the Ells-
worth hall renovation fund for such capital improvement project shall not exceed
$10,500,000 plus all amounts required for costs of any such bond issuance, cost of interest
on any bonds issued or obtained for such capital improvement projects and any required
reserves for payment of principal and interest on any bond: Provided further, That such
capital improvement project is hereby approved for the university of Kansas for the purposes
of subsection (b) of K.S.A. 74-8905 and amendments thereto and the authorization of the
issuance of bonds by the Kansas development finance authority in accordance with that
statute: And provided further, That all moneys received from the issuance of any such bonds
shall be deposited in the state treasury to the credit of the Ellsworth hall renovation fund:
And provided further, That the above agency may transfer moneys for fiscal year 2000 from
appropriate accounts of the housing system repairs, equipment and improvement fund to
the Ellsworth hall renovation fund for the capital improvement project to renovate Ellsworth
hall.

(b) On July 1, 1999, the appropriation of all moneys credited to and available in the
renovate Ellsworth hall--special revenue fund for the fiscal year ending June 30, 2000, by
section 161(a) of 1999 Senate Bill No. 325 for the capital improvement project to renovate
Ellsworth hall is hereby lapsed and the renovate Ellsworth hall--special revenue fund es-
tablished by section 161(a) of 1999 Senate Bill No. 325 is hereby abolished and the provisos
to the renovate Ellsworth hall--special revenue fund in section 161(a) of 1999 Senate Bill
No. 325 are hereby declared to be null and void and shall have no force and effect.

Sec. 18.

KANSAS STATE UNIVERSITY (a) On July 1, 1999, of the $100,220,771 appropriated for the above agency for the fiscal
year ending June 30, 2000, by section 64(a) of 1999 Senate Bill No. 325 from the state
general fund in the operating expenditures (including official hospitality) account, the sum
of $53,193 is hereby lapsed.

(b) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year or years specified, all moneys now or hereafter lawfully credited
to and available in such fund or funds, except that expenditures other than refunds author-
ized by law shall not exceed the following:

Ackert hall addition--special revenue fund

For the fiscal year ending June 30, 2000

No limit

Provided, That Kansas state university may make expenditures from the Ackert hall addi-
tion--special revenue fund for the capital improvement project to construct an addition to
Ackert hall in addition to the expenditure of other moneys appropriated therefor: Provided,
however, That expenditures from this fund for such capital improvement project shall not
exceed $2,000,000 plus all amounts required for costs of any bond issuance, costs of interest
on any bond issued or obtained for such capital improvement project and any required
reserves for payment of principal and interest on any bond: Provided, further, That such
capital improvement project is hereby approved for Kansas state university for the purposes
of subsection (b) of K.S.A. 74-8905 and amendments thereto and the authorization of the
issuance of bonds by the Kansas development finance authority in accordance with that
statute: And provided further, That all moneys received from the issuance of any such bonds
shall be deposited in the state treasury to the credit of this fund.

Sec. 19.

KANSAS STATE UNIVERSITY EXTENSION SYSTEMS AND AGRICULTURE RESEARCH PROGRAMS (a) On the effective date of this act, of the $15,678,790 appropriated for the above agency
for the fiscal year ending June 30, 1999, by section 132(a) of chapter 203 of the 1998 Session
Laws of Kansas from the state general fund in the cooperative extension service (including
official hospitality) account, the sum of $20,115 is hereby lapsed.

(b) On the effective date of this act, of the $26,725,417 appropriated for the above agency
for the fiscal year ending June 30, 1999, by section 132(a) of chapter 203 of the 1998 Session
Laws of Kansas from the state general fund in the agricultural experiment stations (including
official hospitality) account, the sum of $3,092 is hereby lapsed.

(c) On the effective date of this act, the expenditure limitation established by section
120(a) of 1999 Senate Bill No. 325 on the federal extension fund is hereby increased from
$6,330,221 to $6,350,336.

(d) On the effective date of this act, the expenditure limitation established by section
120(b) of 1999 Senate Bill No. 325 on the federal experimental station fund is hereby
increased from $3,372,758 to $3,375,850.

Sec. 20.

WICHITA STATE UNIVERSITY (a) On July 1, 1999, of the $61,773,770 appropriated for the above agency for the fiscal
year ending June 30, 2000, by section 71(a) of 1999 Senate Bill No. 325 from the state
general fund in the operating expenditures (including official hospitality) account, the sum
of $71,802 is hereby lapsed.

(b) On the effective date of this act, or as soon thereafter as moneys are available, the
director of accounts and reports shall transfer $99,962 from the appropriate account or
accounts of the restricted fees fund of Wichita state university to the state general fund.

(c) On July 1, 1999, or as soon thereafter as moneys are available, the director of accounts
and reports shall transfer $96,928 from the appropriate account or accounts of the restricted
fees fund of Wichita state university to the state general fund.

Sec. 21.

KANSAS STATE UNIVERSITY VETERINARY MEDICAL CENTER (a) On the effective date of this act, of the $9,309,505 appropriated for the above agency
for the fiscal year ending June 30, 1999, by section 133(a) of chapter 203 of the 1998 Session
Laws of Kansas from the state general fund in the operating expenditures (including official
hospitality) account, the sum of $34,394 is hereby lapsed.

(b) On July 1, 1999, of the $9,340,709 appropriated for the above agency for the fiscal
year ending June 30, 2000, by section 66(a) of 1999 Senate Bill No. 325 from the state
general fund in the operating expenditures (including official hospitality) account, the sum
of $42,255 is hereby lapsed.

(c) On the effective date of this act, the expenditure limitation established for the fiscal
year ending June 30, 1999, by section 121(a) of 1999 Senate Bill No. 325 on the general
fees fund is hereby increased from $4,902,738 to $4,937,132.

(d) On July 1, 1999, the expenditure limitation established for the fiscal year ending June
30, 2000, by section 66(b) of 1999 Senate Bill No. 325 on the general fees fund is hereby
increased from $5,017,298 to $5,031,935.

Sec. 22.

KANSAS DEPARTMENT OF AGRICULTURE (a) On July 1, 1999, of the $10,525,786 appropriated for the above agency for the fiscal
year ending June 30, 2000, by section 82(a) of 1999 Senate Bill No. 325 from the state
general fund in the operating expenditures (including official hospitality) account, the sum
of $27,210 is hereby lapsed.

(b) On July 1, 1999, the expenditure limitation established by section 82(b) of 1999 Senate
Bill No. 325 on the water appropriation certification fund is hereby decreased from $370,640
to $369,238.

(c) On July 1, 1999, the position limitation established by section 90(a) of 1999 Senate
Bill No. 325 for the Kansas department of agriculture is hereby decreased from 315.5 to
314.5.

Sec. 23.

KANSAS WHEAT COMMISSION (a) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year or years specified, all moneys now or hereafter lawfully credited
to and available in such fund or funds, except that expenditures other than refunds author-
ized by law shall not exceed the following:

Wheat research reserve fund

For the fiscal year ending June 30, 2000

(b) On July 1, 1999, the expenditure limitation established by section 85(a) of 1999 Senate
Bill No. 325 on expenditures from the Kansas wheat commission fund, unless additional
expenditures are specifically authorized by the state finance council after presentation of a
new market plan for the Kansas wheat commission, is hereby increased from $3,181,463 to
$3,194,731.

Sec. 24.

KANSAS STATE SCHOOL FOR THE BLIND (a) On July 1, 1999, of the $4,287,704 appropriated for the above agency for the fiscal
year ending June 30, 2000, by section 60(a) of 1999 Senate Bill No. 325 from the state
general fund in the operating expenditures account, the sum of $20,476 is hereby lapsed.

(b) On July 1, 1999, the position limitation established by section 90(a) of 1999 Senate
bill No. 325 for the Kansas state school for the blind is hereby decreased from 93.5 to 92.5.

Sec. 25.

KANSAS BOARD OF EXAMINERS IN FITTING AND DISPENSING OF HEARING AIDS (a) On July 1, 1999, the expenditure limitation established for the fiscal year ending June
30, 2000, by section 12(a) of 1999 Senate Bill No. 325 on the hearing aid board fee fund is
hereby increased from $15,385 to $17,910.

(b) On July 1, 2000, the expenditure limitation established for the fiscal year ending June
30, 2001, by section 12(a) of 1999 Senate Bill No. 325 on the hearing aid board fee fund is
hereby increased from $15,616 to $20,573.

Sec. 26.

SECRETARY OF STATE (a) There is appropriated for the above agency from the state general fund for the fiscal
year or years specified, the following:

Operating expenditures

For the fiscal year ending June 30, 1999

$77,569

(b) On July 1, 1999, of the $2,086,754 appropriated for the above agency for the fiscal
year ending June 30, 2000, by section 30(a) of 1999 Senate Bill No. 325 from the state
general fund in the operating expenditures account, the sum of $27,129 is hereby lapsed.

Sec. 27.

KANSAS BOARD OF BARBERING (a) On the effective date of this act, the expenditure limitation established for the fiscal
year ending June 30, 1999, by section 66(a) of chapter 203 of the 1998 Session Laws of
Kansas on the board of barbering fee fund is hereby increased from $106,371 to $111,311.

Sec. 28.

LEGISLATURE (a) There is appropriated for the above agency from the state general fund for the fiscal
year or years specified, the following:

Operations (including official hospitality)

For the fiscal year ending June 30, 2000

$128,168

Sec. 29.

KANSAS COMMISSION ON VETERANS AFFAIRS (a) There is appropriated for the above agency from the state institutions building fund
for the fiscal year or years specified, the following:

State veterans cemeteries system planning

For the fiscal year ending June 30, 1999	$25,000
For the fiscal year ending June 30, 2000	$75,000

Veterans' home treatment building roof replacement

For the fiscal year ending June 30, 1999

$52,000

Soldiers' home facility conservation improvement program

For the fiscal year ending June 30, 1999

$915,250

(b) There is appropriated for the above agency from the state general fund for the fiscal
year or years specified, the following:

Operations--state veterans cemeteries

For the fiscal year ending June 30, 2000

$48,599

(c) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year or years specified, all moneys now or hereafter lawfully credited
to and available in such fund or funds, except that expenditures other than refunds author-
ized by law shall not exceed the following:

State veterans cemeteries fee fund

For the fiscal year ending June 30, 2000

$16,458

Wichita veterans administration nursing home fee fund

For the fiscal year ending June 30, 2000

Provided, That all expenditures from the Wichita veterans administration nursing home fee
fund shall be for the operation of a nursing home at the Wichita veterans administration
hospital: Provided further, That the state finance council shall not increase the expenditure
limitation on the Wichita veterans administration nursing home fee fund in fiscal year 2000
unless the Kansas commission on veterans affairs reaches an agreement with the federal
government which provides for reimbursement of all operating expenditures at a nursing
home at the Wichita veterans administration hospital and the director of the budget certifies
to the state finance council that the operation of a nursing home at the Wichita veterans
administration hospital would not result in state expenditures which are not reimbursed by
the federal government.

(d) On July 1, 1999, the position limitation established by section 90(a) of 1999 Senate
Bill No. 325 for the Kansas commission on veterans affairs is hereby increased from 335.8
to 337.8.

(e) On July 1, 1999, the director of accounts and reports shall transfer $545,570 from the
state general fund to the Wichita veterans administration nursing home fee fund of the
Kansas commission on veterans affairs.

Sec. 30.

DEPARTMENT OF HEALTH AND ENVIRONMENT (a) On the effective date of this act, the $250,000 appropriated for the above agency for
the fiscal year ending June 30, 1999, by section 114(a) of 1999 Senate Bill No. 325 from
the state general fund in the AIDS medication shortfall account, is hereby lapsed.

(b) There is appropriated for the above agency from the state general fund for the fiscal
year or years specified, the following:

Operating expenditures--implementation of 1999 House Bill No. 2362

For the fiscal year ending June 30, 2000

$60,000

Operating expenditures--implementation of 1999 House Bill No. 2074

For the fiscal year ending June 30, 2000

$42,900

Operating expenditures--implementation of Substitute for 1999 House Bill No. 2469

For the fiscal year ending June 30, 2000

$787,583

Provided, That no expenditures shall be made from the operating expenditures--imple-
mentation of Substitute for 1999 House Bill No. 2469 account unless 1999 House Bill No.
2469 is enacted into law.

(c) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year or years specified, all moneys now or hereafter lawfully credited
to and available in such fund or funds, except that expenditures other than refunds author-
ized by law shall not exceed the following:

Lead based paint hazard fee fund

For the fiscal year ending June 30, 2000

No limit

Trauma fund

For the fiscal year ending June 30, 2000

$300,000

Hazardous waste management fund

For the fiscal year ending June 30, 2000

$900,000

Oz theme park fund

For the fiscal year ending June 30, 2000

$250,000

(d) On the effective date of this act, the expenditure limitation established by section
117(b) of chapter 203 of the 1998 Session Laws of Kansas on the health care database fee
fund is hereby increased from $3,000 to $35,000.

(e) On the effective date of this act, the expenditure limitation established by section
117(b) of chapter 203 of the 1998 Session Laws of Kansas on the office of rural health--
federal fund is hereby increased from $61,598 to $161,598.

(f) On the effective date of this act, the expenditure limitation established by section
117(b) of chapter 203 of the 1998 Session Laws of Kansas on the federal cancer registry
fund is hereby increased from $525,716 to $575,716.

(g) On July 1, 1999, the position limitation established by section 90(a) of 1999 Senate
Bill No. 325 for the department of health and environment is hereby increased from 839.0
to 845.5.

(h) In addition to the purposes for which expenditures may be made by the above agency
from the aid to local units account of the state general fund for the fiscal year ending June
30, 2000, as authorized by section 53 of 1999 Senate Bill No. 325, expenditures may be
made by the above agency from the aid to local units account of the state general fund for
fiscal year 2000 for a contract or contracts between the secretary of health and environment
and not-for-profit organizations for programs that provide services for women which enable
them to carry their pregnancies to term: Provided, That such contracted services may include
an array of social services relating to pregnancy maintenance and that no individuals who
are unable to pay shall be denied the delivery or provision of pregnancy maintenance serv-
ices: Provided further, That no contract or contracts under pregnancy maintenance pro-
grams shall be entered into with any group performing, promoting, referring for or educating
in favor of abortion: And provided further, That a not-for-profit organization awarded a
contract under this proviso shall match state moneys under this contract on the basis of a
50% match from a not-for-profit organization and a 50% match from the department of
health and environment: And provided further, That the secretary of health and environment
shall submit a report to the legislature at the beginning of the regular session of the legis-
lature in 2000 on the results and outcomes of such pregnancy maintenance programs: And
provided further, That no part of the grant moneys shall be used for any political purposes:
And provided further, That expenditures from the aid to local units account of the state
general fund for fiscal year 2000 for such purpose shall not exceed $300,000.

(i) On June 30, 2000, the director of accounts and reports shall transfer $118,000 from
the hazardous waste management fund of the department of health and environment to the
state general fund.

Sec. 31.

CONSUMER CREDIT COMMISSIONER (a) On July 1, 1999, the expenditure limitation established for the fiscal year ending June
30, 2000, by section 13(a) of 1999 Senate Bill No. 325 on the consumer credit fee fund is
hereby increased from $445,723 to $482,215.

(b) On July 1, 2000, the expenditure limitation established for the fiscal year ending June
30, 2001, by section 13(a) of 1999 Senate Bill No. 325 on the consumer credit fee fund is
hereby increased from $456,859 to $494,063.

(c) In addition to the provisions of the provisos to the appropriation of moneys from the
consumer credit fee fund for the fiscal year ending June 30, 2000, as prescribed in section
13(a) of 1999 Senate Bill No. 325, the consumer credit commissioner shall make a report
to the 2000 legislature on the operations of household and credit counseling, inc., to include
the number of households counseled, locations where counseling is offered, outcomes meas-
ures and the impact of increased funding.

Sec. 32.

OFFICE OF THE SECURITIES COMMISSIONER OF KANSAS (a) On July 1, 1999, the expenditure limitation established for the fiscal year ending June
30, 2000, by section 19(a) of 1999 Senate Bill No. 325 on the securities act fee fund is
hereby increased from $1,878,834 to $1,923,834.

(b) On July 1, 1999, the position limitation established for the fiscal year ending on June
30, 2000, by section 22 of 1999 Senate Bill No. 325 for the office of the securities commis-
sioner of Kansas is hereby increased from 27.0 to 27.8.

(c) On July 1, 2000, the expenditure limitation established for the fiscal year ending June
30, 2001, by section 19(a) of 1999 Senate Bill No. 325 on the securities act fee fund is
hereby increased from $1,918,405 to $1,963,405.

(d) On July 1, 2000, the position limitation established for the fiscal year ending June 30,
2001, by section 22 of 1999 Senate Bill No. 325 for the office of the securities commissioner
of Kansas is hereby increased from 27.0 to 27.8.

Sec. 33.

STATE CORPORATION COMMISSION (a) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year or years specified, all moneys now or hereafter lawfully credited
to and available in such fund or funds, except that expenditures other than refunds author-
ized by law shall not exceed the following:

National pipeline safety program--federal fund

For the fiscal year ending June 30, 1999	No limit
For the fiscal year ending June 30, 2000	No limit

CNG infrastructure grants fund

For the fiscal year ending June 30, 1999	No limit
For the fiscal year ending June 30, 2000	No limit

(b) On July 1, 1999, the aggregate expenditure limitation established by section 40(b) of
1999 Senate Bill No. 325 for the fiscal year ending June 30, 2000, for the above agency
from the public service regulation fund, the motor carrier license fees fund and the con-
servation fee fund is hereby decreased from $12,618,403 to $12,588,255.

(c) On July 1, 1999, the position limitation established by section 90(a) of 1999 Senate
Bill No. 325 for the state corporation commission is hereby decreased from 211.0 to 210.0.
Sec. 34.

DEPARTMENT OF HUMAN RESOURCES (a) On July 1, 1999, the expenditure limitation established by section 51(b) of 1999 Senate
Bill No. 325 on the workmen's compensation fee fund is hereby increased from $7,928,276
to $8,393,956.

(b) There is appropriated for the above agency from the state general fund for the fiscal
year or years specified, the following:

Operating expenditures

For the fiscal year ending June 30, 2000

$50,000

(c) On July 1, 1999, the director of accounts and reports shall transfer $500,000 from the
workmen's compensation fee fund to the state general fund for the purposes of reimbursing
the state general fund for accounting, auditing, budgeting, legal, payroll, personnel and
purchasing services and any other governmental services which are performed on behalf of
the division of workers compensation of the department of human resources by other state
agencies which receive appropriations from the state general fund to provide such services
and such amount for such reimbursement is in addition to those amounts authorized by
K.S.A. 75-3170a and amendments thereto.

Sec. 35.

BEHAVIORAL SCIENCES REGULATORY BOARD (a) On July 1, 1999, the expenditure limitation established by section 6(a) of 1999 Senate
Bill No. 325 on the behavioral sciences regulatory board fee fund is hereby increased from
$391,028 to $421,736.

(b) Notwithstanding the provisions of any other statute, subsections (a)(2)(C) and (a)(8)
of K.A.R. 102-2-7 or any other rules and regulations to the contrary, on and after July 1,
1999, no expenditures shall be made from the behavioral sciences regulatory board fee fund
for the fiscal year ending June 30, 2000, for any operating expenditures or other expenses
for any disciplinary action or other disciplinary activity by the behavioral sciences regulatory
board or by any officer or employee of the behavioral sciences regulatory board against any
person, who is hereinafter referred to in this subsection as a state supervisor, who is licensed
by the behavioral sciences regulatory board as a licensed social worker and who is or was
employed by the department of social and rehabilitation services in a position with super-
visory responsibility over another person who is licensed by the behavioral sciences regu-
latory board as a licensed social worker, for any failure by such state supervisor to make any
report to the behavioral sciences regulatory board regarding the impaired condition of such
licensed social worker, who is or was employed by the department of social and rehabilitation
services in a position requiring the employee to be a licensed social worker and who was
dismissed, demoted or suspended as a direct result of the impaired condition of such li-
censed social worker in accordance with K.S.A. 75-2949 through 75-2949f, and amendments
thereto, under the Kansas civil service act while under the supervisory responsibility of such
state supervisor.

(c) Notwithstanding the provisions of any other statute, subsections (a)(2)(C) and (a)(8)
of K.A.R. 102-2-7 or any other rules and regulations to the contrary, on and after July 1,
2000, no expenditures shall be made from the behavioral sciences regulatory board fee fund
for the fiscal year ending June 30, 2001, for any operating expenditures or other expenses
for any disciplinary action or other disciplinary activity by the behavioral sciences regulatory
board or by any officer or employee of the behavioral sciences regulatory board against any
person, who is hereinafter referred to in this subsection as a state supervisor, who is licensed
by the behavioral sciences regulatory board as a licensed social worker and who is or was
employed by the department of social and rehabilitation services in a position with super-
visory responsibility over another person who is licensed by the behavioral sciences regu-
latory board as a licensed social worker, for any failure by such state supervisor to make any
report to the behavioral sciences regulatory board regarding the impaired condition of such
licensed social worker, who is or was employed by the department of social and rehabilitation
services in a position requiring the employee to be a licensed social worker and who was
dismissed, demoted or suspended as a direct result of the impaired condition of such li-
censed social worker in accordance with K.S.A. 75-2949 through 75-2949f, and amendments
thereto, under the Kansas civil service act while under the supervisory responsibility of such
state supervisor.

Sec. 36.

STATE HISTORICAL SOCIETY (a) There is appropriated for the above agency from the state general fund for the fiscal
year or years specified, the following:

Operating expenditures

For the fiscal year ending June 30, 2000

$148,006

(b) On September 15, 1999, December 15, 1999, March 15, 2000, and June 15, 2000, or
as soon thereafter as moneys are available, the director of accounts and reports shall transfer
amounts specified by the executive director of the state historical society from the Kansas
economic development endowment account of the state economic development initiatives
fund of the department of commerce and housing to the economic development initiatives
fund of the state historical society: Provided, That the aggregate of all such transfers shall
not exceed $40,000 during the fiscal year ending June 30, 2000.

(c) In addition to the other purposes for which expenditures may be made by the state
historical society from any moneys appropriated from the state general fund or any special
revenue fund for the fiscal year ending June 30, 2000, as authorized by section 62 of 1999
Senate Bill No. 325 or by this or other appropriation act of the 1999 regular session of the
legislature, expenditures shall be made by the state historical society from any such moneys
appropriated for fiscal year 2000 to establish in conjunction with Kansas state university
extension systems and agriculture research programs a library to disseminate information
and teaching materials and resources including the printing and distribution of such teaching
materials and resources by Kansas state university extension systems and agriculture re-
search programs in accordance with a contract which is hereby authorized to be entered
into by such state agencies.

Sec. 37.

KANSAS HUMAN RIGHTS COMMISSION (a) On July 1, 1999, of the $1,455,796 appropriated for the above agency for the fiscal
year ending June 30, 2000, by section 39(a) of 1999 Senate Bill No. 325 from the state
general fund in the operating expenditures account, the sum of $29,537 is hereby lapsed.

(b) On July 1, 1999, the position limitation established by section 90(a) of 1999 Senate
Bill No. 325 for the Kansas human rights commission is hereby decreased from 37.0 to 36.0.

Sec. 38.

STATE BOARD OF PHARMACY (a) On July 1, 1999, the expenditure limitation established for the fiscal year ending June
30, 2000, by section 16(a) of 1999 Senate Bill No. 325 on the state board of pharmacy fee
fund is hereby increased from $508,449 to $513,968.

(b) On July 1, 2000, the expenditure limitation established for the fiscal year ending June
30, 2001, by section 16(a) of 1999 Senate Bill No. 325 on the state board of pharmacy fee
fund is hereby increased from $521,865 to $525,228.

Sec. 39.

ADJUTANT GENERAL (a) There is appropriated for the above agency from the state general fund for the fiscal
year or years specified, the following:

Disaster relief

For the fiscal year ending June 30, 1999

$1,107,592

Provided, That any unencumbered balance in the disaster relief account in excess of $100
as of June 30, 1999, is hereby reappropriated for fiscal year 2000: Provided further, That
the adjutant general may make expenditures from the disaster relief account to provide the
full amount of nonfederal matching moneys required for disaster relief claims by local
governments under the applicable federal emergency disaster relief program requirements
in appropriate cases of hardship which shall be determined by the adjutant general in ac-
cordance with guidelines for hardship determinations, including appropriate guidelines for
evaluating available local government resources and prioritizing local government claims,
which are hereby authorized to be adopted and administered by the adjutant general.

Operating expenditures

For the fiscal year ending June 30, 1999	$70,017
For the fiscal year ending June 30, 2000	$69,387

(b) On July 1, 1999, the position limitation established by section 90(a) of 1999 Senate
Bill No. 325 for the adjutant general is hereby decreased from 217.0 to 215.0.

Sec. 40.

STATE FIRE MARSHAL (a) On July 1, 1999, the expenditure limitation established by section 75(a) of 1999 Senate
Bill No. 325 on the fire marshal fee fund is hereby increased from $2,598,933 to $2,616,094.

Sec. 41.

KANSAS SENTENCING COMMISSION (a) There is appropriated for the above agency from the state general fund for the fiscal
year or years specified, the following:

Operating expenditures

For the fiscal year ending June 30, 2000

$170,794

Sec. 42.

ATTORNEY GENERAL--KANSAS BUREAU OF INVESTIGATION (a) There is appropriated for the above agency from the state general fund for the fiscal
year or years specified, the following:

Operating expenditures

For the fiscal year ending June 30, 1999

$436,270

Kansas City satellite laboratory

For the fiscal year ending June 30, 2000

$445,000

Provided, That expenditures may be made from the Kansas City satellite laboratory account
to remodel facilities and establish, equip and operate a laboratory at the Kansas City Kansas
community college in accordance with contracts which are hereby authorized to be entered
into by the director of the Kansas bureau of investigation with the Kansas City community
college and other appropriate local governmental entities for this purpose.

(b) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year or years specified, all moneys now or hereafter lawfully credited
to and available in such fund or funds, except that expenditures other than refunds author-
ized by law shall not exceed the following:

Private detective fee fund

For the fiscal year ending June 30, 1999	$29,839
For the fiscal year ending June 30, 2000	$42,912

(c) On the effective date of this act, of the $12,280,743 appropriated for the above agency
for the fiscal year ending June 30, 2000, by section 78(a) of 1999 Senate Bill No. 325 from
the state general fund in the operating expenditures account, the sum of $640,902 is hereby
lapsed.

(d) On July 1, 1999, the position limitation established by section 90(a) of 1999 Senate
Bill No. 325 for the attorney general--Kansas bureau of investigation is hereby increased
from 198.5 to 203.0.

Sec. 43.

KANSAS HIGHWAY PATROL (a) On the effective date of this act, of the $25,897,644 appropriated for the above agency
for the fiscal year ending June 30, 2000, by section 77(a) of 1999 Senate Bill No. 325 from
the state general fund in the operating expenditures account, the sum of $40,597 is hereby
lapsed.

(b) On July 1, 1999, the position limitation established by section 90(a) of 1999 Senate
Bill No. 325 for the Kansas highway patrol is hereby decreased from 809.8 to 808.8.

Sec. 44.

DEPARTMENT OF CORRECTIONS (a) There is appropriated for the above agency from the state general fund for the fiscal
year or years specified, the following:

Community correctional conservation camp

For the fiscal year ending June 30, 2000

$7,600

(b) On July 1, 1999, of the $13,299,699 appropriated for the above agency for the fiscal
year ending June 30, 2000, by section 73(a) of 1999 Senate Bill No. 325 from the state
general fund in the central administration operations and parole and post-release supervision
operations account, the sum of $89,759 is hereby lapsed.

(c) On July 1, 1999, of the $127,444,892 appropriated for the above agency for the fiscal
year ending June 30, 2000, by section 73(a) of 1999 Senate Bill No. 325 from the state
general fund in the facilities operations account, the sum of $66,488 is hereby lapsed.

(d) On July 1, 1999, of the $7,266,747 appropriated for the above agency for the fiscal
year ending June 30, 2000, by section 150(a) of 1999 Senate Bill No. 325 from the state
general fund in the debt service payment for the revenue refunding bond issue account, the
sum of $48,747 is hereby lapsed.

(e) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year ending June 30, 2000, all moneys now or hereafter lawfully
credited to and available in such fund or funds, except that expenditures other than refunds
authorized by law shall not exceed the following:

Department of corrections--alien incarceration grant fund--federal	No limit
Ellsworth correctional facility--alien incarceration grant fund--federal	No limit
El Dorado correctional facility--alien incarceration grant fund--federal	No limit
Larned correctional mental health facility--alien incarceration grantfund--federal	No limit
Norton correctional facility--alien incarceration grant fund--federal	No limit
Topeka correctional facility--alien incarceration grant fund--federal	No limit
Winfield correctional facility--alien incarceration grant fund--federal	No limit

(f) On the effective date of this act, the position limitation established by section 140(e)
of chapter 203 of the 1998 Session Laws of Kansas for the department of corrections is
hereby increased from 3,033.5 to 3,034.5.

(g) During the fiscal years ending June 30, 1999, and June 30, 2000, the department of
corrections is hereby authorized to make expenditures to raze building number 125 (Lansing
barber shop).

(h) On July 1, 1999, the position limitation established by section 90(a) of 1999 Senate
Bill No. 325 for the department of corrections is hereby increased from 3,037.5 to 3,045.5.

Sec. 45.

DEPARTMENT OF WILDLIFE AND PARKS (a) In addition to the other purposes for which expenditures may be made by the above
agency from the wildlife fee fund for the fiscal year ending June 30, 2000, expenditures may
be made by the above agency from the following account or accounts of the wildlife fee
fund during fiscal year 2000 for the following purposes, subject to the expenditure limitations
prescribed therefor:

Wildlife fee fund natural resources conservation cooperative projects	$65,000
Wildlife fee fund lesser prairie chicken habitat study	$125,000

Provided, That all such expenditures from each such account shall be in addition to any
expenditure limitation imposed on the wildlife fee fund for fiscal year 2000.

(b) During the fiscal year ending June 30, 2000, no expenditures by the department of
wildlife and parks from the federal grants fund shall be made for rails-to-trails projects.

Sec. 46.

STATE BOARD OF HEALING ARTS (a) On July 1, 1999, the expenditure limitation established for the fiscal year ending June
30, 2000, by section 7(a) of 1999 Senate Bill No. 325 on the healing arts fee fund is hereby
increased from $1,710,429 to $1,780,307.

(b) On July 1, 2000, the expenditure limitation established for the fiscal year ending June
30, 2001, by section 7(a) of 1999 Senate Bill No. 325 on the healing arts fee fund is hereby
increased from $1,654,921 to $1,703,109.

(c) On July 1, 1999, the position limitation established for the fiscal year ending June 30,
2000, by section 22 of 1999 Senate Bill No. 325 for the state board of healing arts is hereby
increased from 28.0 to 29.0.

(d) On July 1, 2000, the position limitation established for the fiscal year ending June 30,
2001, by section 22 of 1999 Senate Bill No. 325 for the state board of healing arts is hereby
increased from 28.0 to 29.0.

Sec. 47.

STATE LIBRARY (a) There is appropriated for the above agency from the state general fund for the fiscal
year or years specified, the following:

Grants to libraries and library systems

For the fiscal year ending June 30, 2000

$400,000

(b) On July 1, 1999, the amount prescribed by the proviso to the grants to libraries and
library systems account of the state general fund in section 58(a) of 1999 Senate Bill No.
325 to be distributed as grants in aid to libraries in accordance with K.S.A. 75-2555 and
amendments thereto is hereby increased from $2,421,531 to $2,821,531.

Sec. 48.

JUVENILE JUSTICE AUTHORITY (a) There is appropriated for the above agency from the state general fund for the fiscal
year or years specified, the following:

Operating expenditures

For the fiscal year ending June 30, 1999	$5,973
For the fiscal year ending June 30, 2000	$33,137,464

Provided, That any unencumbered balance in the operating expenditures account in excess
of $100 as of June 30, 1999, is hereby reappropriated for fiscal year 2000: Provided, however,
That expenditures from such reappropriated balance shall be made only upon approval of
the state finance council: Provided further, That expenditures from the operating expendi-
tures account for official hospitality shall not exceed $1,000.

Management information systems

For the fiscal year ending June 30, 2000

$1,811,254

Facilities operations

For the fiscal year ending June 30, 2000

$25,758,393

Provided, That any unencumbered balance in the facilities operations account in excess of
$100 as of June 30, 1999, is hereby reappropriated for fiscal year 2000: Provided, however,
That expenditures from such reappropriated balance shall not exceed $139,161 except upon
approval of the state finance council: Provided further, That expenditures may be made
from this account for educational services contracts which are hereby authorized to be
negotiated and entered into by the above agency with unified school districts or other public
educational services providers: And provided further, That such educational services con-
tracts shall not be subject to the competitive bid requirements of K.S.A. 75-3739 and amend-
ments thereto.

Facility expansion

For the fiscal year ending June 30, 1999

$748,313

Provided, That any unencumbered balance in the facility expansion account in excess of
$100 as of June 30, 1999, is hereby reappropriated for fiscal year 2000.

(b) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year ending June 30, 2000, all moneys now or hereafter lawfully
credited to and available in such fund or funds, except that expenditures other than refunds
authorized by law shall not exceed the following:

Title XIX fund	No limit
Title IV-E fund	No limit
Juvenile justice delinquency prevention--federal fund	No limit
Juvenile detention facilities fund	$2,786,458
Juvenile justice fee fund	No limit
Kansas endowment for youth trust fund	No limit
Juvenile justice federal fund	No limit
Juvenile justice community initiative fund	No limit
Juvenile justice community planning fund	No limit
Byrne grant--federal fund	No limit
Capital facilities planning and projects--federal fund	No limit
Topeka juvenile correctional facility fee fund	No limit
Topeka juvenile correctional facility improvement fund	No limit
Topeka juvenile correctional facility--elementary and secondary educa-tion fund--federal	No limit
Topeka juvenile correctional facility--canteen fund	No limit
Topeka juvenile correctional facility--patient benefit fund	No limit
Atchison juvenile correctional facility fee fund	No limit
Atchison juvenile correctional facility--elementary and secondary ed-ucation fund--federal	No limit
Atchison juvenile correctional facility--canteen fund	No limit
Atchison juvenile correctional facility--patient benefit fund	No limit
Beloit juvenile correctional facility fee fund	No limit
Beloit juvenile correctional facility--elementary and secondary educationfund--federal	No limit
Beloit juvenile correctional facility--canteen fund	No limit
Beloit juvenile correctional facility--patient benefit fund	No limit
Larned juvenile correctional facility fee fund	No limit

(c) On July 1, 1999, or as soon thereafter as moneys are available, the director of accounts
and reports shall transfer $90,000 from the alcohol and drug abuse block grant federal fund
of the department of social and rehabilitation services to the juvenile justice federal fund
of the juvenile justice authority.

(d) On July 1, 1999, or as soon thereafter as moneys are available, the director of accounts
and reports shall transfer $43,368 from the alcohol and drug abuse block grant federal fund
of the department of social and rehabilitation services to the Beloit juvenile correctional
facility fee fund of the juvenile justice authority.

(e) During the fiscal year ending June 30, 2000, the superintendent of the Topeka juvenile
correctional facility, upon the approval of the director of accounts and reports, shall transfer
$4,000 from the Topeka juvenile correctional facility--canteen fund to the Topeka juvenile
correctional facility--patient benefit fund.

(f) During the fiscal year ending June 30, 2000, the superintendent of the Atchison ju-
venile correctional facility, upon the approval of the director of accounts and reports, shall
transfer $500 from the Atchison juvenile correctional facility--canteen fund to the Atchison
juvenile correctional facility--patient benefit fund.

(g) During the fiscal year ending June 30, 2000, the superintendent of the Beloit juvenile
correctional facility, upon the approval of the director of accounts and reports, shall transfer
$1,000 from the Beloit juvenile correctional facility--canteen fund to the Beloit juvenile
correctional facility--patient benefit fund.

(h) During the fiscal year ending June 30, 2000, the commissioner of juvenile justice, with
the approval of the director of the budget, may transfer any part of any item of appropriation
for the fiscal year ending June 30, 2000, from the state general fund for the juvenile justice
authority or any juvenile correctional facility or institution under the general supervision
and management of the commissioner of juvenile justice to another item of appropriation
for fiscal year 2000 from the state general fund for the juvenile justice authority or any
juvenile correctional facility or institution under the general supervision and management
of the commissioner of juvenile justice. The commissioner of juvenile justice shall certify
each such transfer to the director of accounts and reports and shall transmit a copy of each
such certification to the legislative research department.

(i) The following amounts are included in the facilities operations account of the state
general fund for the fiscal year ending June 30, 2000, for the following juvenile correctional
facilities and institutions, but expenditures from the facilities operations account shall not
be limited to, nor be required to be made in, the amount listed for the juvenile correctional
facility:

Topeka juvenile correctional facility	$10,773,887
Beloit juvenile correctional facility	$5,253,618
Atchison juvenile correctional facility	$5,826,057
Larned juvenile correctional facility	$4,043,992

(j) During the fiscal year ending June 30, 2000, upon notification by the commissioner
of juvenile justice, the director of accounts and reports shall transfer all moneys specified
by the commissioner of juvenile justice for the residential substance abuse program at the
Larned juvenile correctional facility to the juvenile justice federal fund of the juvenile justice
authority.

(k) In addition to the other purposes for which expenditures may be made from the
children's health care programs fund for the fiscal year ending June 30, 2000, expenditures
may be made by the above agency from the children's health care programs fund for fiscal
year 2000 for the following specified purposes subject to the expenditure limitations pre-
scribed therefor:

Children's health care programs fund--prevention program grants

$4,000,000

Provided, That all expenditures by the above agency from the children's health care pro-
grams fund for fiscal year 2000 from the children's health care programs fund--prevention
program grants account shall be in addition to any expenditure limitation imposed on the
children's health care programs fund for fiscal year 2000: Provided further, That money
awarded as grants from this account is not an entitlement to communities, but a grant that
must meet conditions prescribed by the above agency for appropriate outcomes: And pro-
vided further, That the juvenile justice authority shall submit a detailed plan as to how
communities will expend money awarded as grants from this account and shall report such
details to the joint committee on corrections and juvenile justice oversight before July 1,
1999.

Children's health care programs fund--intervention and graduated sanctions community grants

$2,000,000

Provided, That all expenditures by the above agency from the children's health care pro-
grams fund for fiscal year 2000 from the children's health care programs fund--intervention
and graduated sanctions community grants account shall be in addition to any expenditure
limitation imposed on the children's health care programs fund for fiscal year 2000: Provided
further, That money awarded as grants from this account is not an entitlement to commu-
nities, but a grant that must meet conditions prescribed by the above agency for appropriate
outcomes.

Children's health care programs fund--community management information systems projects

$85,000

Provided, That all expenditures by the above agency from the children's health care pro-
grams fund for fiscal year 2000 from the children's health care programs fund--community
management information systems projects account shall be in addition to any expenditure
limitation imposed on the children's health care programs fund for fiscal year 2000.

(l) (1) On the effective date of this act, the position limitation established by section 150
of chapter 203 of the 1998 Session Laws of Kansas for the juvenile justice authority is hereby
increased from 590.0 to 597610.0.

(2) The number of full-time and regular part-time positions equated to full-time, exclud-
ing seasonal and temporary positions, paid from appropriations for fiscal year 2000 made in
this or other appropriation act of the 1999 regular session of the legislature for the juvenile
justice authority shall not exceed 610.0, except upon approval of the state finance council.

(m) There is appropriated for the above agency from the state institutions building fund
for the fiscal year ending June 30, 2000, for the capital improvement project or projects
specified as follows:

Capital improvements--rehabilitation, remodeling, renovation and repairof juvenile correctional facilities

$1,307,123

Provided, That the commissioner of juvenile justice is hereby authorized to transfer moneys
during fiscal year 2000 from the capital improvements--rehabilitation, remodeling, reno-
vation and repair of juvenile correctional facilities account of the state institutions building
fund to an account or accounts of the state institutions building fund of any institution or
facility under the jurisdiction of the commissioner of juvenile justice to be expended during
fiscal year 2000 by the institution or facility for capital improvement projects approved by
the commissioner of juvenile justice.

Juvenile facility planning needs	$3,500,000
Proposed Larned juvenile correctional facility--architectural design andplanning for renovation or replacement	$100,000

(n) On the effective date of this act, the expenditure limitation established by section
146(b) of chapter 203 of the 1998 Session Laws of Kansas on the juvenile detention facilities
fund is hereby increased from $2,697,648 to $3,497,648.

(o) In addition to the other purposes for which expenditures may be made by the juvenile
justice authority from the moneys appropriated in the juvenile facility planning needs ac-
count of the state institutional buildings fund for the fiscal year ending June 30, 2000, as
authorized by this or other appropriation act of the 1999 regular session of the legislature,
expenditures shall be made by the juvenile justice authority from the moneys appropriated
in the juvenile facility planning needs account of the state institutional buildings fund for
the fiscal year ending June 30, 2000, for preliminary architectural planning for capacity
expansion as identified by the juvenile justice authority: Provided, That such planning shall
be administered and implemented by the juvenile justice authority in accordance with the
policy priorities of the legislature, including (1) violent offenders should be confined in a
state-of-the-art maximum juvenile facility or facilities, (2) juvenile facilities should not be
overcrowded, and (3) juvenile facilities should be safe and appropriate for juvenile offenders,
officers and employees of the juvenile justice authority and the members of the public:
Provided further, That the capacity expansion plans of the juvenile justice authority shall
include plans to concurrently renovate or replace existing deficient space in existing facilities,
specifically including such space at the Larned juvenile correctional facility and at the To-
peka juvenile correctional facility, and construct new juvenile correctional facility space:
And provided further, That the long-term capacity expansion plans of the juvenile justice
authority shall include plans and provisions to provide satisfactory juvenile correctional fa-
cility capacity to meet or exceed the requirements of the juvenile offender incarceration
population projections of the Kansas sentencing commission at the times projected by the
Kansas sentencing commission and may include contingency plans for utilizing debt financ-
ing to satisfy the need for additional satisfactory juvenile correctional facility capacity, either
through public building commissions or otherwise.

Sec. 49.

(a) On July 1, 1999, or as soon thereafter as moneys are available therefor, the director
of accounts and reports shall transfer $10,800,300 from the state general fund to the chil-
dren's health care programs fund.

(b) On July 1, 2000, or as soon thereafter as moneys are available therefor, the director
of accounts and reports shall transfer $10,800,300 from the children's health care programs
fund to the state general fund.

Sec. 50.

STATE BOARD OF REGENTS (a) There is appropriated for the above agency from the state general fund for the fiscal
year ending June 30, 2000, the following:

Operating expenditures (including official hospitality)	$285,107
Postsecondary aid for vocational education	$19,685,124
Adult basic education	$1,100,000
Community college credit hour state aid	$45,870,378
Community college out-district state aid entitlement	$13,750,973
Community college general state aid	$2,642,795
Technology equipment at community colleges and Washburnuniversity	$450,000

Provided, That the state board of regents is hereby authorized to make expenditures from
the technology equipment at community colleges and Washburn university account for
grants to community colleges and Washburn university pursuant to grant applications for
the purchase of technology equipment, in accordance with guidelines established by the
state board of regents.

Vocational education capital outlay aid

$500,000

Provided, That expenditures from the vocational education capital outlay aid account for
each grant of vocational education capital outlay aid shall be matched by the area vocational
school, the area vocational-technical school or the technical college in an amount which is
equal to 50% of the grant.

(b) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year ending June 30, 2000, all moneys now or hereafter lawfully
credited to and available in such fund or funds, except that expenditures other than refunds
authorized by law and transfers to other state agencies shall not exceed the following:

GED credentials processing fees fund	No limit
Proprietary school fee fund	No limit
Adult basic education--federal fund	No limit
Truck driver training fund	No limit
Economic development initiatives fund	$8,916,110

Provided, That no expenditures shall be made from the economic development initiatives
fund of the state board of regents other than for purposes specifically authorized by this or
other appropriation act: Provided, however, That expenditures from such fund for such
purpose shall not exceed the limitations prescribed therefor.

Inservice education workshop fee fund

No limit

Provided, That expenditures may be made from the inservice education workshop fee fund
for operating expenditures, including official hospitality, incurred for inservice workshops
and conferences: Provided further, That the state board of regents is hereby authorized to
fix, charge and collect fees for inservice workshops and conferences: And provided further,
That such fees shall be fixed in order to recover all or part of such operating expenditures
incurred for inservice workshops and conferences: And provided further, That all fees re-
ceived for inservice workshops and conferences shall be deposited in the state treasury and
credited to the inservice education workshop fee fund.

Private donations, gifts, grants and bequests fund	No limit
Tuition and fee waiver reimbursement fund	$0

Provided, That all expenditures from the tuition and fee waiver reimbursement fund shall
be for tuition and fee waiver reimbursement, in accordance with K.S.A. 75-4364 and amend-
ments thereto, for the dependents of public safety officers killed in the line of duty, pursuant
to certification by educational institutions submitted to the state board of regents during
the fiscal year in which such tuition and fees were waived.

(c) Expenditures may be made from the economic development initiatives fund of the
state board of regents for the fiscal year ending June 30, 2000, for the following purposes,
subject to the expenditure limitations prescribed therefor:

Vocational education capital outlay aid

$2,000,000

Postsecondary aid for vocational education	$6,716,110
Technology innovation and internship program	$200,000

(d) On September 15, 1999, December 15, 1999, April 15, 2000, and on June 15, 2000,
or as soon after each such date as moneys are available, the director of accounts and reports
shall transfer $2,226,786 from the Kansas economic development endowment account of
the state economic development initiatives fund of the department of commerce and hous-
ing to the economic development initiatives fund of the state board of regents.

(e) On July 1, 1999, the position limitation established by section 90(a) of 1999 Senate
Bill No. 325 for the state board of regents is hereby increased from 18.0 to 26.0.

Sec. 51.

STATE TREASURER (a) There is appropriated for the above agency from the state general fund for the fiscal
year or years specified, the following:

Postsecondary education savings program

For the fiscal year ending June 30, 2000

$237,500

(b) On July 1, 1999, the position limitation established by section 90(a) of 1999 Senate
Bill No. 325 for the state treasurer is hereby increased from 53.5 to 554.5.

Sec. 52.

LEGISLATIVE COORDINATING COUNCIL (a) Any unencumbered balance in the legislative coordinating council--Kansas public
employees retirement system defined contribution plan evaluation and study account in
excess of $100 as of June 30, 1999, is hereby reappropriated to the legislative coordinating
council--studies requested by joint committee on pensions, investments and benefits ac-
count, which is hereby established, for fiscal year 2000. There is appropriated for the above
agency from the state general fund for the fiscal year or years specified, the following:

Any unencumbered balance in the legislative coordinating council--Kansas public employ-
ees retirement system defined contribution plan evaluation and study account in excess of
$100 as of June 30, 1999, is hereby reappropriated to the legislative coordinating council--
studies requested by joint committee on pensions, investments and benefits account, which
is hereby established, for fiscal year 2000.

Sec. 53. On July 1, 1999, K.S.A. 1998 Supp. 79-2964, as amended by section 94 of 1999
Senate Bill No. 325, is hereby amended to read as follows: 79-2964. There is hereby created
the county and city revenue sharing fund. All moneys transferred or credited to such fund
under the provisions of this act or any other law shall be allocated and distributed in the
manner provided herein. The director of accounts and reports in each year on July 15 and
December 10, shall make transfers in equal amounts which in the aggregate equal 3.5% of
the total retail sales and compensating taxes credited to the state general fund pursuant to
articles 36 and 37 of chapter 79 of the Kansas Statutes Annotated and acts amendatory
thereof and supplemental thereto during the preceding calendar year from the state general
fund to the county and city revenue sharing fund, except that: (a) The transfers on July 15
and December 10 of each year shall be in equal amounts which in the aggregate equal
2.823% of such taxes credited to the state general fund during the preceding calendar year;
and (b) the amount of the transfer on each such date during state fiscal year 2000 shall be
equal to ~~101.7%~~ 101.0% of the amount transferred on the same date during state fiscal year
1999. All such transfers are subject to reduction under K.S.A. 75-6704 and amendments
thereto. All transfers made in accordance with the provisions of this section shall be consid-
ered to be demand transfers from the state general fund.

Sec. 54. (a) In accordance with appropriations for the fiscal year ending June 30, 2000,
made by this or other appropriation act of the 1999 regular session of the legislature:

(1) The governor is hereby authorized and directed to modify the pay plan for fiscal year
1999 in accordance with this subsection (a)(1) and to adopt such pay plan as so modified.
The existing pay plan for fiscal year 1999 shall be modified to provide for an increase of
1.0% in the pay rates of such pay plan. The pay plan adopted by the governor under this
subsection (a)(1) shall be the pay plan for the classified service under the Kansas civil service
act and shall be effective on the first day of the first biweekly payroll period which is
chargeable to the fiscal year ending June 30, 2000. Such pay plan shall be subject to mod-
ification and approval as provided under K.S.A. 75-2938 and amendments thereto and to
any enactment of the legislature applicable thereto.

(2) (A) The governor is hereby authorized and directed to modify or authorize the mod-
ification of the salaries of state officers and employees who are in the unclassified service
under the Kansas civil service act and whose salaries are subject to approval by the governor
under K.S.A. 75-2935b or 75-2935c and amendments thereto to provide for base salary
increases, to be effective on the first day of the first payroll period which is chargeable to
the fiscal year ending on June 30, 2000, and to be distributed on a merit basis from a merit
salary increase pool, the average of such increases shall not exceed 3.5% of the base salaries
of such officers and employees.

(B) Each elected state official of the executive branch of state government, including the
state board of education, and the Kansas technology enterprise corporation, Kansas, Inc.,
the state board of regents and the board of trustees of the Kansas public employees retire-
ment system, in each such official or board's discretion, are hereby authorized and directed
to modify or to authorize the modification of the salaries of the state officers and employees
of such official or board, who are in the unclassified service under the Kansas civil service
act and whose salaries are not subject to approval by the governor under K.S.A. 75-2935b
or 75-2935c and amendments thereto, to provide for base salary increases to be effective
on the first day of the first payroll period which is chargeable to the fiscal year ending June
30, 2000, and to be distributed on a merit basis from a merit salary increase pool, the average
of such increases shall not exceed 3.5% of the base salaries of such officers and employees
of such official or board. The provisions of this subsection (a)(2)(B) shall not authorize or
provide any salary increase for the governor, lieutenant governor, secretary of state, state
treasurer, commissioner of insurance, attorney general, or to any member of any state board,
commission, council or committee receiving per diem compensation as provided by statute.

(b) On and after June 13, 1999, in addition to the other purposes for which expenditures
may be made by the governor's department from the governor's department account of the
state general fund for the fiscal year ending June 30, 2000, expenditures shall be made by
the governor's department from the governor's department account of the state general
fund for fiscal year 2001 for an additional amount of biweekly compensation for the governor
equal to the amount required to provide, along with the amount of biweekly compensation
otherwise payable, an aggregate amount of compensation of $3,528.54 per biweekly pay
period: Provided, That expenditures for such purpose shall be made in the same manner
and at the same times that biweekly compensation is payable to the governor for the biweekly
pay periods which commence on or after June 13, 1999, and which are chargeable to fiscal
year 2000.

(c) On and after June 13, 1999, in addition to the other purposes for which expenditures
may be made by the lieutenant governor from the operations account of the state general
fund for the fiscal year ending June 30, 2000, expenditures shall be made by the lieutenant
governor from the operations account of the state general fund for fiscal year 2000 for an
additional amount of biweekly compensation for the lieutenant governor equal to the amount
required to provide, along with the amount of biweekly compensation otherwise payable,
an aggregate amount of compensation of $998.04 per biweekly pay period: Provided, That
expenditures for such purpose shall be made in the same manner and at the same times
that biweekly compensation is payable to the lieutenant governor for the biweekly pay per-
iods which commence on or after June 13, 1999, and which are chargeable to fiscal year
2000.

(d) On and after June 13, 1999, in addition to the other purposes for which expenditures
may be made by the secretary of state from the operating expenditures account of the state
general fund for the fiscal year ending June 30, 2000, expenditures shall be made by the
secretary of state from the operating expenditures account of the state general fund for fiscal
year 2000 for an additional amount of biweekly compensation for the secretary of state equal
to the amount required to provide, along with the amount of biweekly compensation oth-
erwise payable, an aggregate amount of compensation of $2,741.15 per biweekly pay period:
Provided, That expenditures for such purpose shall be made in the same manner and at the
same times that biweekly compensation is payable to the secretary of state for the biweekly
pay periods which commence on or after June 13, 1999, and which are chargeable to fiscal
year 2000.

(e) On and after June 13, 1999, in addition to the other purposes for which expenditures
may be made by the attorney general from the operating expenditures account of the state
general fund for the fiscal year ending June 30, 2000, expenditures shall be made by the
attorney general from the operating expenditures account of the state general fund for fiscal
year 2000 for an additional amount of biweekly compensation for the attorney general equal
to the amount required to provide, along with the amount of biweekly compensation oth-
erwise payable, an aggregate amount of compensation of $3,152.24 per biweekly pay period:
Provided, That expenditures for such purpose shall be made in the same manner and at the
same times that biweekly compensation is payable to the attorney general for the biweekly
pay periods which commence on or after June 13, 1999, and which are chargeable to fiscal
year 2000.

(f) On and after June 13, 1999, in addition to the other purposes for which expenditures
may be made by the state treasurer from the operating expenditures account of the state
general fund for the fiscal year ending June 30, 2000, expenditures shall be made by the
state treasurer from the operating expenditures account of the state general fund for fiscal
year 2000 for an additional amount of biweekly compensation for the state treasurer equal
to the amount required to provide, along with the amount of biweekly compensation oth-
erwise payable, an aggregate amount of compensation of $2,741.15 per biweekly pay period:
Provided, That expenditures for such purpose shall be made in the same manner and at the
same times that biweekly compensation is payable to the state treasurer for the biweekly
pay periods which commence on or after June 13, 1999, and which are chargeable to fiscal
year 2000.

(g) On and after June 13, 1999, in addition to the other purposes for which expenditures
may be made by the insurance department from the insurance department service regulation
fund for the fiscal year ending June 30, 2000, expenditures shall be made by the insurance
department from the insurance department service regulation fund for fiscal year 2000 for
an additional amount of biweekly compensation for the commissioner of insurance equal to
the amount required to provide, along with the amount of biweekly compensation otherwise
payable, an aggregate amount of compensation of $2,741.15 per biweekly pay period: Pro-
vided, That expenditures for such purpose shall be made in the same manner and at the
same times that biweekly compensation is payable to the commissioner of insurance for the
biweekly pay periods which commence on or after June 13, 1999, and which are chargeable
to fiscal year 2000.

(h) (1) In addition to the other purposes for which expenditures may be made by each
state agency from appropriations made for the fiscal year ending June 30, 2000, expenditures
shall be made by each state agency from the appropriations made for fiscal year 2000 for
an additional amount of per diem compensation equal to the amount required to provide,
along with the amount of per diem compensation otherwise payable, an aggregate amount
of compensation of $74.58 per calendar day for each member of a board for any calendar
day occurring on or after June 13, 1999, for which per diem compensation is payable to
such member of a board under K.S.A. 75-3212 or 75-3223 and amendments thereto at the
rate prescribed by subsection (a) of K.S.A. 46-137a and amendments thereto: Provided,
That expenditures for such purpose shall be made in the same manner and at the same
times that per diem compensation is payable to such member of a board for the biweekly
pay periods for which such per diem compensation for calendar days occurring on or after
June 13, 1999, is payable and which are chargeable to fiscal year 2000.

(2) As used in this subsection (h), (A) ``state agency'' means any state agency of the
executive branch of state government (i) which has appropriations made for the fiscal year
ending June 30, 2000, by 1999 Senate Bill No. 325, this act or any other appropriation act
of the 1999 regular session of the legislature, and (ii) which is, or which makes expenditures
for, any board; and

(B) ``board'' means any board, commission, committee, task force, panel or other body in
the executive branch of state government, including any advisory body, having one or more
members who are entitled to receive per diem compensation for attendance at meetings of
such body, or attendance at meetings authorized by such body of a subcommittee or other
subsidiary group of such body, as provided in K.S.A. 75-3212 or 75-3223 and amendments
thereto at the rate prescribed by subsection (a) of K.S.A. 46-137a and amendments thereto.

(i) In addition to the other purposes for which expenditures may be made by the Kansas
turnpike authority for the period commencing June 13, 1999, and ending June 30, 2000,
expenditures shall be made by the Kansas turnpike authority for such period for an additional
amount of per diem compensation equal to the amount required to provide, along with the
amount of per diem compensation otherwise payable, an aggregate amount of compensation
of $74.58 per calendar day for each member of the Kansas turnpike authority for any cal-
endar day occurring on or after June 13, 1999, for which per diem compensation is payable
to such member under K.S.A. 68-2003 and amendments thereto who is entitled, in accord-
ance with K.S.A. 75-3223 and amendments thereto, to receive such per diem compensation
as provided in K.S.A. 75-3212 and amendments thereto at the rate prescribed by subsection
(a) of K.S.A. 46-137a and amendments thereto: Provided, That expenditures for such pur-
pose shall be made in the same manner and at the same times that per diem compensation
is payable to such member of the Kansas turnpike authority for the appropriate pay periods
for which such per diem compensation for calendar days occurring on or after June 13,
1999, and prior to July 1, 2000, is payable by the Kansas turnpike authority.

(j) In addition to the other purposes for which expenditures may be made by the legis-
lature from the operations (including official hospitality) account of the state general fund
for the fiscal year ending June 30, 2000, expenditures shall be made by the legislature from
the operations (including official hospitality) account of the state general fund for fiscal year
2000 (1) for an additional amount of per diem compensation equal to the amount required
to provide, along with the amount of per diem compensation otherwise payable, an aggregate
amount of compensation of $74.58 per calendar day for each member of the legislature for
service at the regular session or any special session of the legislature for any calendar day
occurring on or after June 13, 1999, and (2) for an additional amount of per diem compen-
sation equal to the amount required to provide, along with the amount of per diem com-
pensation otherwise payable, an aggregate amount of compensation of $74.58 per calendar
day for each member of the legislature and for any other public officer or person for any
calendar day occurring on or after June 13, 1999, for which per diem compensation is
payable from appropriations for the legislature to such member of the legislature, public
officer or person under K.S.A. 75-3212 or 75-3223 and amendments thereto at the rate
prescribed by subsection (a) of K.S.A. 46-137a and amendments thereto: Provided, That
expenditures for such purposes shall be made in the same manner and at the same times
that per diem compensation is payable to such members of the legislature, public officials
and persons for the biweekly pay periods for which such per diem compensation for calendar
days occurring on or after June 13, 1999, is payable and which are chargeable to fiscal year
2000.

(k) On and after June 13, 1999, in addition to the other purposes for which expenditures
may be made by the legislature from the operations (including official hospitality) account
of the state general fund for the fiscal year ending June 30, 2000, expenditures shall be
made by the legislature from the operations (including official hospitality) account of the
state general fund for fiscal year 2000 for an additional amount of biweekly compensation
for the following legislative officers equal to the amount required to provide, along with the
amount of biweekly compensation otherwise payable, an aggregate amount of compensation
per biweekly pay period for such legislative officers as follows: (1) For the president of the
senate and the speaker of the house of representatives equal to the amount required to
provide an aggregate amount of $454.18 per biweekly pay period for services performed in
connection with discharging the duties assigned to the respective positions, (2) for the
speaker pro tem of the house of representatives, the vice president of the senate, the assistant
majority leaders of the senate and house of representatives, and the assistant minority leaders
of the senate and house of representatives equal to the amount required to provide an
aggregate amount of $231.81 per biweekly pay period for services performed in connection
with discharging the duties assigned to the respective positions, (3) for the chairperson of
the senate committee on ways and means and the chairperson of the house of representatives
committee on appropriations equal to the amount required to provide an aggregate amount
of $365.24 per biweekly pay period for services performed in connection with discharging
the duties assigned to the respective positions, (4) for the majority leaders of the senate and
house of representatives equal to the amount required to provide an aggregate amount of
$409.75 per biweekly pay period for services performed in connection with discharging the
duties assigned to the respective positions, and (5) the minority leaders of the senate and
house of representatives equal to the amount required to provide an aggregate amount of
$409.75 per biweekly pay period for services performed in connection with discharging the
duties assigned to the respective positions: Provided, That expenditures for such purpose
shall be made in the same manner and at the same times that biweekly compensation is
payable to such legislative officers under K.S.A. 46-137b and amendments thereto for the
biweekly pay periods which commence on or after June 13, 1999, and which are chargeable
to fiscal year 2000.

(l) In addition to the other purposes for which expenditures may be made by the legislative
coordinating council from the legislative coordinating council-operations account of the state
general fund for the fiscal year ending June 30, 2000, expenditures shall be made by the
legislative coordinating council from the legislative coordinating council-operations account
of the state general fund for fiscal year 2000 for an additional amount of per diem compen-
sation equal to the amount required to provide, along with the amount of per diem com-
pensation otherwise payable, an aggregate amount of compensation of $74.58 per calendar
day for each member of the legislative coordinating council for any calendar day occurring
on or after June 13, 1999, for which per diem compensation is payable from appropriations
for the legislative coordinating council under K.S.A. 46-1209 and amendments thereto to
such member as provided in K.S.A. 75-3212 and amendments thereto at the rate prescribed
by subsection (a) of K.S.A. 46-137a and amendments thereto: Provided, That expenditures
for such purposes shall be made in the same manner and at the same times that per diem
compensation is payable to such members of the legislative coordinating council for the
biweekly pay periods for which such per diem compensation is payable for calendar days
occurring on or after June 13, 1999, and which are chargeable to fiscal year 2000.

(m) In addition to the other purposes for which expenditures may be made by the division
of post audit from the operations (including legislative post audit committee) account of the
state general fund for the fiscal year ending June 30, 2000, expenditures shall be made by
the division of post audit from the operations (including legislative post audit committee)
account of the state general fund for fiscal year 2000 (1) for an additional amount of per
diem compensation equal to the amount required to provide, along with the amount of per
diem compensation otherwise payable, an aggregate amount of compensation of $74.58 per
calendar day for each member of the legislative post audit committee for any calendar day
occurring on or after June 13, 1999, for which per diem compensation is payable from
appropriations for the division of post audit under K.S.A. 46-1104 and amendments thereto
to such member as provided in K.S.A. 75-3212 and amendments thereto at the rate pre-
scribed by subsection (a) of K.S.A. 46-137a and amendments thereto, and (2) for an addi-
tional amount of per diem compensation equal to the amount required to provide, along
with the amount of per diem compensation otherwise payable, an aggregate amount of
compensation of $74.58 per calendar day for each member of the contract audit committee
for any calendar day occurring on or after June 13, 1999, for which per diem compensation
is payable from appropriations for the division of post audit under K.S.A. 46-1120 and
amendments thereto to such member as provided in K.S.A. 75-3223 and amendments
thereto at the rate prescribed by subsection (a) of K.S.A. 46-137a and amendments thereto:
Provided, That expenditures for such purposes shall be made in the same manner and at
the same times that per diem compensation is payable to such members of the legislative
post audit committee or contract audit committee for the biweekly pay periods for which
such per diem compensation is payable for calendar days occurring on or after June 13,
1999, and which are chargeable to fiscal year 2000.

(n) In addition to the other purposes for which expenditures may be made by the judicial
branch from the judiciary operations account of the state general fund for the fiscal year
ending June 30, 2000, expenditures shall be made by the judicial branch from the judiciary
operations account of the state general fund for fiscal year 2000 (1) for an additional amount
of per diem compensation equal to the amount required to provide, along with the amount
of per diem compensation otherwise payable, an aggregate amount of compensation of
$74.58 per calendar day for each member of the advisory council on dispute resolution for
any calendar day occurring on or after June 13, 1999, for which per diem compensation is
payable to such member of the advisory council on dispute resolution under K.S.A. 5-505
and amendments thereto who is entitled, in accordance with subsection (e) of K.S.A. 75-
3223 and amendments thereto, to receive such per diem compensation as provided in K.S.A.
75-3212 and amendments thereto at the rate prescribed by subsection (a) of K.S.A. 46-137a
and amendments thereto; and (2) for an additional amount of per diem compensation equal
to the amount required to provide, along with the amount of per diem compensation oth-
erwise payable, an aggregate amount of compensation of $74.58 per calendar day for each
retired justice or judge who performs judicial service or duties under K.S.A. 20-2616 and
amendments thereto for each calendar day occurring on or after June 13, 1999, for which
per diem compensation is payable to such retired justice or judge under K.S.A. 20-2616 and
amendments thereto: Provided, That expenditures for such purposes shall be made in the
same manner and at the same times that per diem compensation is payable to such members
of the advisory council on dispute resolution or to such retired justices or judges for the
biweekly pay periods for which such per diem compensation for calendar days occurring on
or after June 13, 1999, is payable and which are chargeable to fiscal year 2000.

(o) In addition to the other purposes for which expenditures may be made by the judicial
council from the operating expenditures account of the state general fund for the fiscal year
ending June 30, 2000, expenditures shall be made by the judicial council from the operating
expenditures account of the state general fund for fiscal year 2000 for an additional amount
of per diem compensation equal to the amount required to provide, along with the amount
of per diem compensation otherwise payable, an aggregate amount of compensation of
$74.58 per calendar day for each member of the judicial council and for each regularly
appointed member of a special committee of the judicial council who is not a member of
the judicial council for any calendar day occurring on or after June 13, 1999, for which per
diem compensation is payable to such member of the judicial council or a special committee
thereof under K.S.A. 20-2206 and amendments thereto at the rate of compensation in
accordance with K.S.A. 75-3212 and amendments thereto at the rate prescribed by subsec-
tion (a) of K.S.A. 46-137a and amendments thereto: Provided, That expenditures for such
purposes shall be made in the same manner and at the same times that per diem compen-
sation is payable to such members of the judicial council or special committees thereof for
the biweekly pay periods for which such per diem compensation for calendar days occurring
on or after June 13, 1999, is payable and which are chargeable to fiscal year 2000.

Sec. 55. Appeals to exceed position limitations. (a) The limitations imposed by this act on
the number of full-time and regular part-time positions equated to full-time, excluding
seasonal and temporary positions, paid from appropriations for the fiscal year ending June
30, 1999, made in this act or in any appropriation act of the 1998 regular session of the
legislature or in any other appropriation act of the 1999 regular session of the legislature
may be exceeded upon approval of the state finance council.

(b) The limitations imposed by this act on the number of full-time and regular part-time
positions equated to full-time, excluding seasonal and temporary positions, paid from ap-
propriations for the fiscal year ending June 30, 2000, made in this act or in any other
appropriation act of the 1999 regular session of the legislature may be exceeded upon
approval of the state finance council.

Sec. 56. Appeals to exceed expenditure limitations. Upon written application to the gov-
ernor and approval of the state finance council, expenditures from special revenue funds
may exceed the amounts specified in this act.

Sec. 57. Savings. (a) Any unencumbered balance as of June 30, 1999, in any special
revenue fund, or account thereof, of any state agency named in this act which is not oth-
erwise specifically appropriated or limited by this or other appropriation act of the 2000
regular session of the legislature, is hereby appropriated for the fiscal year ending June 30,
2000, for the same use and purpose as the same was heretofore appropriated.

(b) Any unencumbered balance in any special revenue fund, or account thereof, of any
state agency named in section 22 of 1999 Senate Bill No. 325 which is not otherwise spe-
cifically appropriated or limited for fiscal year 2001 by this or other appropriation act of the
1999 or 2000 regular session of the legislature, is hereby appropriated for fiscal year 2001
for the same use and purpose as the same was heretofore appropriated.

Sec. 58. Federal grants. (a) Each federal grant or other federal receipt which is received
by a state agency named in this act and which is not otherwise appropriated to that state
agency by this or other appropriation act of the 1999 regular session of the legislature, is
hereby appropriated for the fiscal year ending June 30, 2000, for that state agency for the
purpose set forth in such federal grant or receipt, except that no expenditure shall be made
from and no obligation shall be incurred against any such federal grant or other federal
receipt, which has not been previously appropriated or reappropriated or approved for
expenditure by the governor, until the governor has authorized the state agency to make
expenditures therefrom.

(b) Each federal grant or other federal receipt which is received by a state agency named
in section 22 of 1999 Senate Bill No. 325 and which is not otherwise appropriated to that
state agency for fiscal year 2001 by this or other appropriation act of the 1999 or 2000
regular session of the legislature, is hereby appropriated for fiscal year 2001 for that state
agency for the purpose set forth in such federal grant or receipt, except that no expenditure
shall be made from and no obligation shall be incurred against any such federal grant or
other federal receipt, which has not been previously appropriated or reappropriated or
approved for expenditure by the governor, for fiscal year 2001, until the governor has au-
thorized the state agency to make expenditures from such federal grant or other federal
receipt for fiscal year 2001.

Sec. 59. Any transfers of money during the fiscal year ending June 30, 2000, from any
special revenue fund of any state agency named in this act to the audit services fund of the
division of post audit under K.S.A. 46-1121 and amendments thereto shall be in addition to
any expenditure limitation imposed on any such fund for the fiscal year ending June 30,
2000.

Sec. 60. Any correctional institutions building fund appropriation heretofore appropriated
to any state agency named in this or other appropriation act of the 1999 regular session of
the legislature, and having an unencumbered balance as of June 30, 1999, in excess of $100
is hereby reappropriated for the fiscal year ending June 30, 2000, for the same uses and
purposes as originally appropriated unless specific provision is made for lapsing such ap-
propriation.

Sec. 61. Any Kansas educational building fund appropriation heretofore appropriated to
any institution named in this or other appropriation act of the 1999 regular session of the
legislature and having an unencumbered balance as of June 30, 1999, in excess of $100 is
hereby reappropriated for the fiscal year ending June 30, 2000, for the same use and purpose
as originally appropriated, unless specific provision is made for lapsing such appropriation.

Sec. 62. Any state institutions building fund appropriation heretofore appropriated to any
state agency named in this or other appropriation act of the 1999 regular session of the
legislature and having an unencumbered balance as of June 30, 1999, in excess of $100 is
hereby reappropriated for the fiscal year ending June 30, 2000, for the same use and purpose
as originally appropriated, unless specific provision is made for lapsing such appropriation.

Sec. 63. On July 1, 1999, K.S.A. 1998 Supp. 79-2964, as amended by section 94 of 1999
Senate Bill No. 325, is hereby repealed.

Sec. 64. This act shall take effect and be in force from and after its publication in the
Kansas register.'';

In the title, by striking all in lines 12 through 16 and inserting in lieu thereof the following:

``AN ACT making and concerning appropriations for the fiscal years ending June 30,
1999, June 30, 2000, and June 30, 2001; authorizing certain transfers and fees, imposing
certain restrictions and limitations and directing or authorizing certain receipts, disburse-
ments, capital improvements and acts incidental to the foregoing; amending K.S.A. 1998
Supp. 79-2964, as amended by section 94 of 1999 Senate Bill No. 325, and repealing the
existing section.'';

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

Phill Kline

Melvin Neufeld

Ed McKechnie
Conferees on the part of Senate

Dave Kerr

Alicia Salisbury

Marge Petty
Conferees on part of House

Senator Kerr moved the Senate adopt the Conference Committee Report on HB 2489.

On roll call, the vote was: Yeas 31, nays 8, present and passing 0; absent or not voting 1.

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

Nays: Bleeker, Brownlee, Harrington, Huelskamp, Jordan, Lee, Pugh, Tyson.

Absent or not voting: Hardenburger.

The Conference Committee report was adopted.

EXPLANATION OF VOTE
Mr. President: This afternoon we received the latest state general fund profile. The
profile indicates that we are already minus $2 million in funds available for additional ex-
penditures in 2001.

We have all heard and know of parts of the state economy that are suffering. Our revenue
projections are down.

There are numerous good programs represented in the bill. However we are headed for
a real conflict in funding responsibilities the next couple of years. Currently education rep-
resents approximately 66% of the state budget. With actions taken this session it will grow
to 70% or more. We will find it difficult to properly fund education let alone the demands
from the remaining 30% of the budget.

Mr. President I regretfully vote no.--Nick Jordan

Senator Harrington requests the record to show she concurs with the ``Explanation of
Vote'' offered by Senator Jordan on HB 2489.

ORIGINAL MOTION
On motion of Senator Kerr, the Senate acceded to the request of the House for a con-
ference on HB 2034.

The President appointed Senators Kerr, Salisbury and Petty as conferees on the part of
the Senate.

MESSAGE FROM THE HOUSE
Announcing the House adopts the conference committee report on SB 170.

The House concurs in Senate amendments to HB 2065 and requests the Senate to return
the bill.

The House concurs in Senate amendments to HB 2505 and requests the Senate to return
the bill.

ORIGINAL MOTION
Senator Emert moved that subsection 4(k) of the Joint Rules of the Senate and House
of Representatives be suspended for the purpose of considering the following bill: SB 170.

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 170, submits the following report:

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

On page 3, by striking all in line 17, and inserting material to read as follows:

``Leis, John A., 28719 W. Harry, Garden Plain, KS 67050

$175.68'';

On page 5, in line 38, by striking ``$9,100.00'' and inserting ``$5,000.00'';

On page 6, in line 26, by striking ``$85,200.00'' and inserting ``$31,600.00'';

On page 7, by striking all in lines 16 through 23;

And by renumbering sections accordingly;

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

Dave Kerr

Alicia Salisbury

Anthony Hensley
Conferees on the part of House

Phill Kline

Melvin Neufeld

Douglas Spangler
Conferees on part of Senate

Senator Kerr moved the Senate adopt the Conference Committee Report on SB 170.

On roll call, the vote was: Yeas 30, nays 9, present and passing 0; absent or not voting 1.

Yeas: Barone, Biggs, Bleeker, Bond, Brownlee, Clark, Corbin, Downey, Feleciano, Gil-
strap, Gooch, Goodwin, Harrington, Hensley, Huelskamp, Jones, Jordan, Lee, Oleen, Petty,
Praeger, Pugh, Salmans, Steffes, Steineger, Stephens, Tyson, Umbarger, Vidricksen, Vratil.

Nays: Becker, Donovan, Emert, Kerr, Langworthy, Lawrence, Morris, Ranson, Salisbury.

Absent or not voting: Hardenburger.

The Conference Committee report was adopted.

MESSAGE FROM THE HOUSE
Announcing adoption of HCR 5045.

The House adopts the conference committee report on HB 2489.

CHANGE OF REFERENCE
The President withdrew SB 52 from the calendar under the heading of General Orders,
and rereferred the bill to the Committee on Transportation and Tourism.

The President withdrew Sub SB 55 from the calendar under the heading of General
Orders, and rereferred the bill to the Committee on Federal and State Affairs.

The President withdrew SB 194 from the calendar under the heading of General Orders,
and rereferred the bill to the Committee on Public Health and Welfare.

The President withdrew SB 290 from the calendar under the heading of General Orders,
and rereferred the bill to the Committee on Commerce.

The President withdrew SB 355 from the calendar under the heading of General Orders,
and rereferred the bill to the Committee on Judiciary.

The President withdrew S Sub for HB 2310 from the calendar under the heading of
General Orders, and rereferred the bill to the Committee on Elections and Local Govern-
ment.

The President withdrew HB 2357 from the calendar under the heading of General Or-
ders, and rereferred the bill to the Committee on Education.

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2575, submits the following report:

The Senate recedes from all of its amendments to the bill;

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

Dave Kerr

Barbara Lawrence

Anthony Hensley
Conferees on the part of Senate

Phill Kline

Melvin J. Neufeld

Henry Helgerson
Conferees on part of House

Senator Kerr moved the Senate adopt the Conference Committee Report on HB 2575.

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

Nays: Donovan, Ranson.

Absent or not voting: Hardenburger.

The Conference Committee report was adopted.

INTRODUCTION OF HOUSE CONCURRENT RESOLUTION
HCR 5045, A Concurrent Resolution relating to the 1999 regular session of the legisla-
ture and providing for an adjournment thereof, was thereupon introduced and read by title.

On emergency motion of Senator Emert, HCR 5045, was adopted by voice vote.

On motion of Senator Emert, and in compliance with HCR 5045, the Senate adjourned
until Sine Die, 10:00 a.m., Tuesday, May 25, 1999.

HELEN A. MORELAND, Journal Clerk.
PAT SAVILLE, Secretary of Senate.