April 5, 2000

Journal of the House

FIFTY-NINTH DAY ______

Hall of the House of Represenatitives

Topeka, KS, Wednesday, April 5, 2000, 10:00 a.m.

The House met pursuant to adjournment with Speaker pro tem Mays in the chair.

The roll was called with 124 members present.

Rep. Henderson was excused on excused absence by the Speaker.

Present later: Rep. Henderson.

Prayer by Chaplain Svoboda:

Holy God,

you are the source of all life.
Be with us in our lives
today and every day.
Enliven this place with your spirit.
Help us to do our work here
so that all Kansans may live more fully.
We ask these things in Your name.

Amen.

The Pledge of Allegiance was led by Rep. P. Long.

INTRODUCTION OF GUESTS
Reps. Crow, Ruff and Wilk welcomed the members and coaches of the Leavenworth
High School Boys' Basketball Team, Class 6A State Champions. Coach Larry Hogan ad-
dressed a few remarks to the members of the House.

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

Appropriations: SB 653, 656.

MESSAGES FROM THE GOVERNOR
HB 2538, 2592, 2600, 2663, 2745, 2754, 2769, 2823, 2844, 2854, 2928, 2975, 2997
approved on March 31, 2000.

COMMUNICATIONS FROM STATE OFFICERS
From Kenneth Frahm, Kansas Development Finance Authority, Tobacco Settlement Se-
curitization, March 30, 2000.

The complete report is kept on file and open for inspection in the office of the Chief
Clerk.

MESSAGE FROM THE SENATE
Announcing passage of SB 506.

Announcing passage of HB 2017, as amended; HB 2037, as amended; Sub. HB 2323,
as amended; HB 2624, as amended by S. Sub. for HB 2624; HB 2674, as amended; Sub.
HB 2683, as amended; HB 2799, as amended.

The Senate concurs in House amendments to SB 611, and requests return of the bill.

The Senate adopts conference committee report on H. Sub. for Sub. for Sub. SB 257.

The Senate adopts conference committee report on HB 2757.

The Senate accedes to the request of the House for a conference on S. Sub. for HB
2513 and has appointed Senators Kerr, Salisbury and Petty as conferees on the part of the
Senate.

The Senate accedes to the request of the House for a conference on HB 2996 and has
appointed Senators Kerr, Salisbury and Downey as conferees on the part of the Senate.

The Senate accedes to the request of the House for a conference on HCR 5063 and has
appointed Senators Morris, Umbarger and Stephens as conferees on the part of the Senate.

INTRODUCTION OF SENATE BILLS AND CONCURRENT RESOLUTIONS
The following Senate bill was thereupon introduced and read by title:

SB 506.

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 326, submits the following report:

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

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

David Adkins

Melvin Neufeld

Bill Reardon
Conferees on the part of House

Dave Kerr

Alicia Salisbury

Marge Petty
Conferees on part of Senate

On motion of Rep. Adkins, the conference committee report on H. Sub. for SB 326 was
adopted.

Speaker pro tem Mays thereupon appointed Reps. Adkins, Neufeld and Reardon as sec-
ond conferees on the part of the House.

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

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

Recommended that committee report to HB 2589 be adopted; also, on motion of Rep.
Landwehr to amend, Rep. Gatewood requested a ruling on the amendment being germane
to the bill. The Rules Chair ruled the amendment germane. The question reverted back to
the motion of Rep. Landwehr, and Rep. Gatewood requested the question be divided. The
question was divided.

Roll call was demanded on Part A to amend on page 2, after line 7, by inserting the
following:

``New Sec. 2. For all taxable years commencing after December 31, 1999, there shall be
allowed as a credit against the tax liability imposed under the Kansas income tax act upon
an individual who is certificated to instruct and educate students of grades kindergarten
through 12 in an accredited school, whether public or otherwise, an amount, not to exceed
$100, equal to the purchase costs of equipment, materials or other teaching aids for use in
the classroom to assist in the education of the students of such individual. If the amount of
such tax credit exceeds the individual's income tax liability for the appropriate taxable year,
such excess amount shall be refunded.

Sec. 4. K.S.A. 1999 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 adjusted
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 ad-
justed 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 building
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 pursuant
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. 1999 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.

(x) The amount of any contribution made to an elementary or secondary school to the
extent the same is claimed as the basis for the credit allowed pursuant to section 2.

(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 retirement
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 K.S.A.
1999 Supp. 75-643, 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.

Sec. 5. K.S.A. 1999 Supp. 79-32,117 is hereby repealed.'';

By renumbering the existing section accordingly.

In the title, in line 11, before the period by inserting ``; providing credits therefrom for
teaching aid contributions; amending K.S.A. 1999 Supp. 79-32,117 and repealing the existing
section'';

On roll call, the vote was: Yeas 85; Nays 39; Present but not voting: 0; Absent or not
voting: 1.

Yeas: Aday, Adkins, Alldritt, Allen, Aurand, Barnes, Benlon, Bethell, Boston, Burroughs,
Campbell, Carmody, Dahl, Dean, Edmonds, Faber, Farmer, Feuerborn, Freeborn, Gate-
wood, Glasscock, Grant, Gregory, Haley, Hayzlett, Helgerson, Henry, Holmes, Howell,
Huff, Hutchins, Jenkins, Jennison, Johnson, Johnston, Klein, Phil Kline, Phill Kline, Kreh-
biel, Kuether, Landwehr, Larkin, Light, Lightner, M. Long, P. Long, Loyd, Mason, Mayans,
Mays, McClure, McCreary, McKinney, Merrick, Mollenkamp, Jim Morrison, Judy Morri-
son, Myers, Neufeld, Nichols, O'Brien, O'Connor, O'Neal, Osborne, Palmer, Pauls, Phelps,
Pottorff, Powell, Powers, Reardon, Schwartz, Showalter, Shriver, Shultz, Spangler, Swenson,
Tedder, Thimesch, Toplikar, Vickrey, Vining, Wagle, Weiland, Wells.

Nays: Ballard, Ballou, Beggs, Compton, Cox, Crow, Dreher, Empson, Findley, Flaharty,
Flora, Flower, Garner, Geringer, Gilbert, Hermes, Horst, Humerickhouse, Kirk, Lane,
Lloyd, McKechnie, Minor, E. Peterson, J. Peterson, Ray, Rehorn, Reinhardt, Ruff, Sharp,
Sloan, Stone, Storm, Tanner, Toelkes, Tomlinson, Weber, Welshimer, Wilk.

Present but not voting: None.

Absent or not voting: Henderson.

Part A of the motion of Rep. Landwehr prevailed.

Roll call was demanded on Part B of the motion of Rep. Landwehr to amend on page 2,
after line 7, by inserting the following:

``New Sec. 3. For all taxable years commencing after December 31, 1999, there shall be
allowed as a credit against the tax liability imposed under the Kansas income tax act upon
an individual amounts incurred during the taxable year for education expenses for all de-
pendents of such individual attending an elementary or secondary school which is located
in Kansas which adheres to the provisions of the federal civil rights act of 1964 and the
Kansas act against discrimination, and attendance at which satisfies the requirements of
K.S.A. 72-1111, and amendments thereto. As used in this section: ``Education expenses''
include, but are not limited to, textbooks and other instructional materials and equipment,
but shall not include computer hardware and software and tuition. The amount of such
credit shall be 25% of the amounts paid for education expenses in excess of $250, but shall
not exceed $500 expended for all dependents in any taxable year. If the amount of such tax
credit exceeds the individual's income tax liability for the appropriate taxable year, such
excess amount shall be refunded.'';

On roll call, the vote was: Yeas 54; Nays 63; Present but not voting: 1; Absent or not
voting: 7.

Yeas: Alldritt, Aurand, Boston, Campbell, Carmody, Dahl, Edmonds, Faber, Farmer,
Freeborn, Grant, Gregory, Hayzlett, Helgerson, Henry, Howell, Hutchins, Jenkins, Johnson,
Johnston, Phill Kline, Landwehr, Larkin, M. Long, P. Long, Mayans, Mays, McClure,
McCreary, Judy Morrison, Myers, Neufeld, Nichols, O'Brien, O'Connor, O'Neal, Osborne,
Palmer, Pauls, Pottorff, Powell, Powers, Reardon, Schwartz, Shultz, Tedder, Thimesch,
Toplikar, Vickrey, Vining, Wagle, Weiland, Welshimer, Wilk.

Nays: Aday, Adkins, Allen, Ballard, Ballou, Barnes, Beggs, Benlon, Bethell, Burroughs,
Compton, Cox, Crow, Dean, Dreher, Empson, Feuerborn, Findley, Flaharty, Flower, Gar-
ner, Gatewood, Geringer, Gilbert, Haley, Hermes, Holmes, Horst, Huff, Humerickhouse,
Kirk, Phil Kline, Krehbiel, Kuether, Lane, Lightner, Lloyd, Loyd, Mason, McKechnie, Mc-
Kinney, Merrick, Minor, Mollenkamp, Jim Morrison, E. Peterson, J. Peterson, Phelps, Ray,
Reinhardt, Ruff, Sharp, Showalter, Shriver, Sloan, Stone, Storm, Swenson, Tanner, Toelkes,
Tomlinson, Weber, Wells.

Present but not voting: Klein.

Absent or not voting: Flora, Glasscock, Henderson, Jennison, Light, Rehorn, Spangler.

Part B of the motion of Rep. Landwehr did not prevail.

Also, roll call was demanded on motion of Rep. Toplikar to amend HB 2589 on page 2,
after line 7, by inserting a new section to read as follows:

``Sec. 2. (a) For all taxable years commencing after December 31, 1999, there shall be
allowed as a credit against the tax liability imposed by the Kansas income tax act upon a
resident individual who is 65 years of age or older an amount equal to the product of the
property tax actually and timely paid upon such individual's principal dwelling during the
appropriate income tax year multiplied by the applicable percentage determined in accord-
ance with the following schedule:

Taxpayers Kansas	Applicable % of
Adjusted Gross Income	Property tax paid
$0 to $10,000	30%
Over $10,000 but not over $20,000	20%
Over $20,000 but not over $30,000	10%
Over $30,000	0

(b) As used in this section, ``taxpayer's Kansas adjusted gross income'' shall be deter-
mined without regard to the modifications specified by subsections (c)(i), (ii) regarding
Kansas public employee retirement system retirement benefits, (vii), (ix) and (xii) of K.S.A.
79-32,117, and amendments thereto, and shall not include social security disability pay-
ments.

(c) If the amount of the tax credit determined pursuant to this section exceeds the
individual's tax liability for any taxable year, such excess amount shall be refunded to the
individual.

(d) Any individual who claims the credit allowable pursuant to this section shall not be
eligible to make a claim pursuant to the homestead property tax refund act.'';

By renumbering existing section 2 as section 3;

In the title, in line 11, before the period by inserting ``and individuals'';

On roll call, the vote was: Yeas 102; Nays 17; Present but not voting: 0; Absent or not
voting: 6.

Yeas: Aday, Alldritt, Allen, Ballard, Barnes, Beggs, Benlon, Bethell, Boston, Burroughs,
Campbell, Compton, Crow, Dahl, Dean, Edmonds, Faber, Farmer, Feuerborn, Findley,
Flaharty, Flora, Flower, Garner, Gatewood, Gilbert, Grant, Gregory, Haley, Hayzlett, Hel-
gerson, Henry, Hermes, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jenkins,
Johnson, Johnston, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane,
Larkin, Light, Lightner, Lloyd, M. Long, P. Long, Loyd, Mayans, Mays, McClure, Mc-
Creary, McKinney, Merrick, Minor, Judy Morrison, Myers, Neufeld, Nichols, O'Brien,
O'Connor, O'Neal, Osborne, Palmer, Pauls, E. Peterson, Phelps, Pottorff, Powell, Powers,
Reardon, Rehorn, Ruff, Schwartz, Sharp, Showalter, Shriver, Shultz, Sloan, Storm, Swenson,
Tanner, Tedder, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weiland,
Wells, Welshimer.

Nays: Aurand, Carmody, Cox, Dreher, Empson, Freeborn, Geringer, Mason, McKechnie,
Mollenkamp, Jim Morrison, J. Peterson, Ray, Reinhardt, Stone, Weber, Wilk.

Present but not voting: None.

Absent or not voting: Adkins, Ballou, Glasscock, Henderson, Jennison, Spangler.

The motion of Rep. Toplikar prevailed.

Also, on motion of Rep. Howell HB 2589 be amended on page 2, after line 7, by inserting
a new section to read as follows:

``Sec. 2. (a) For all taxable years commencing after December 31, 1997, there shall be
allowed as a credit against the tax liability of a taxpayer who operates a food locker plant
imposed under the Kansas income tax act, an amount equal to any expenses paid for im-
provements in the facilities of such food locker plant required by federal law. The credit
allowed by this section in any taxable year to the taxpayer shall not exceed $10,000. If the
amount of such tax credit exceeds the taxpayer's income tax liability for any such taxable
year, such excess amount may be carried over for deduction from the taxpayer's tax liability
in the next succeeding taxable year or years until the total amount of the tax credit has been
deducted from tax liability.

(b) As used in this section ``food locker plant'' means a plant which: (1) Is inspected by
the Kansas department of agriculture as provided under the Kansas meat and poultry in-
spection act; and

(2) prepares meat, meat food products, poultry or poultry products which have been
inspected and passed and which are being prepared and sold in normal retail quantities; or

(3) prepares such meat, meat products, poultry or poultry products for the owner of
such food locker plant.'';

By renumbering existing section 2 as section 3;

In the title, in line 11, before the period by inserting ``; providing credit for certain
expenses incurred by food locker plants'';

Also, on motion of Rep. Edmonds HB 2589 be amended on page 1, in line 15, after
``property'' by inserting ``initially''; also in line 15, after ``acquired'' by inserting ``and placed
into service';

Also, on motion of Rep. Sloan to refer HB 2589 to Committee on Utilities, the motion
did not prevail.

Also, on motion of Rep. Schwartz HB 2589 be amended on page 2, after line 7, by
inserting a new section to read as follows:

``Sec. 2. (a) For all taxable years commencing after December 31, 2000, there shall be
allowed as a credit against the tax liability of a taxpayer who operates a food locker plant
imposed under the Kansas income tax act, an amount equal to 75% of the usual and cus-
tomary fee for custom processing of deer provided the meat is donated to charity uses. The
credit allowed by this section in any taxable year to the taxpayer shall not exceed $10,000.
If the amount of such tax credit exceeds the taxpayer's income tax liability for any such
taxable year, such excess amount may be carried over for deduction from the taxpayer's tax
liability in the next succeeding taxable year or years until the total amount of the tax credit
has been deducted from tax liability.

(b) As used in this section ``food locker plant'' means a plant which: (1) Is inspected by
the Kansas department of agriculture as provided under the Kansas meat and poultry in-
spection act; and

(2) prepares meat, meat food products, poultry or poultry products which have been
inspected and passed and which are being prepared and sold in normal retail quantities; or

(3) prepares such meat, meat products, poultry or poultry products for the owner of
such food locker plant.'';

By renumbering existing section 2 as section 3;

In the title, in line 11, before the period by inserting ``; providing credit for certain
expenses incurred by food locker plants'';

Also, on motion of Rep. Nichols HB 2589 be amended on page 2, after line 7, by inserting
a new section to read as follows:

``Sec. 2. (a) For all taxable years commencing after December 31, 1999, there shall be
allowed as a credit against the tax liability of an eligible small business imposed under the
Kansas income tax act, an amount equal to any amount paid to the United States small
business administration as a guaranty fee pursuant to the obtaining of financing guaranteed
by such administration. If such business is a corporation having an election in effect under
subchapter S of the federal internal revenue code, a partnership or a limited liability com-
pany, the credit provided by this section shall be claimed by the shareholders of such cor-
poration, the partners of such partnership or the members of such limited liability company
in the same manner as such shareholders, partners or members account for their propor-
tionate shares of the income or loss of the corporation, partnership or limited liability com-
pany.

(b) The credit authorized by this section shall only be claimed against the tax liability
resulting from income generated by the small business. If an income tax return upon which
this credit is claimed includes adjusted gross income from sources other than the small
business, the credit shall only be allowed to be claimed upon a percentage of the income
tax liability which does not exceed the percentage of adjusted gross income generated by
the small business as compared to the total adjusted gross income shown on the return.

(c) If the amount of the tax credit allowed by this section exceeds the taxpayer's income
tax liability for such taxable year, the amount thereof which exceeds such 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.

(d) As used in this section, ``eligible small business'' shall have the meaning ascribed
thereto by subsection (b) of section 44 of the federal internal revenue code without regard
to subparagraph (2) thereof.'';

By renumbering existing section 2 as section 3;

In the title, in line 11, before the period by inserting ``and for certain expenses of small
businesses'';

and HB 2589 be passed as amended.

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 512, submits the following report:

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

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

Garry Boston

Gerald G. Geringer

Jerry Henry
Conferees on the part of House

Sandy Praeger

John Vratil

Chris Steineger
Conferees on part of Senate

On motion of Rep. Boston, the conference committee report on SB 512 was adopted.

On roll call, the vote was: Yeas 122; Nays 0; Present but not voting: 0; Absent or not
voting: 3.

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

Nays: None.

Present but not voting: None.

Absent or not voting: Aurand, Mayans, O'Neal.

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 541, 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 10, by striking all in lines 40 through 43;

On page 11, by striking all in lines 1 through 5;

And by renumbering sections accordingly;

In the title, in line 16, by striking ``concerning records of pre-''; by striking all in line 17;
in line 18, by striking all before ``amending'';

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

Garry Boston

Gerald G. Geringer

Jerry Henry
Conferees on the part of House

Sandy Praeger

Larry D. Salmans

Chris Steineger
Conferees on part of Senate

On motion of Rep. Boston, the conference committee report on SB 541 was adopted.

On roll call, the vote was: Yeas 122; Nays 1; Present but not voting: 0; Absent or not
voting: 2.

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

Nays: Dean.

Present but not voting: None.

Absent or not voting: Aurand, O'Neal.

MOTIONS TO CONCUR AND NONCONCUR
On motion of Rep. Wagle, the House nonconcurred in Senate amendments to HB 2037
and asked for a conference.

Speaker pro tem Mays thereupon appointed Reps. Wagle, Aurand and Minor as conferees
on the part of the House.

On motion of Rep. Tanner, the House nonconcurred in Senate amendments to HB 2799
and asked for a conference.

Speaker pro tem Mays thereupon appointed Reps. Tanner, Empson and Helgerson as
conferees on the part of the House.

On motion of Rep. Wilk, the House nonconcurred in Senate amendments to S. Sub. for
HB 2624 and asked for a conference.

Speaker pro tem Mays thereupon appointed Reps. Wilk, Horst and Sharp as conferees
on the part of the House.

On motion of Rep. Johnson, the House nonconcurred in Senate amendments to
HB 2674 and asked for a conference.

Speaker pro tem Mays thereupon appointed Reps. Johnson, Schwartz and Weiland as
conferees on the part of the House.

MESSAGE FROM THE SENATE
The Senate nonconcurs in House amendments to H. Sub. for SB 430, requests a con-
ference and has appointed Senators Oleen, Vratil and Jones as conferees on the part of the
Senate.

The Senate nonconcurs in House amendments to H. Sub. for SB 504, requests a con-
ference and has appointed Senators Emert, Vratil and Goodwin as conferees on the part of
the Senate.

The Senate nonconcurs in House amendments to SB 664, requests a conference and has
appointed Senators Morris, Umbarger and Stephens as conferees on the part of the Senate.

INTRODUCTION OF ORIGINAL MOTIONS
On motion of Rep. Glasscock, the House acceded to the request of the Senate for a
conference on H. Sub. for SB 430.

Speaker pro tem Mays thereupon appointed Reps. Powell, Phill Kline and Klein as con-
ferees on the part of the House.

On motion of Rep. Glasscock, the House acceded to the request of the Senate for a
conference on H. Sub. for SB 504.

Speaker pro tem Mays thereupon appointed Reps. O'Neal, Carmody and Pauls as con-
ferees on the part of the House.

On motion of Rep. Glasscock, the House acceded to the request of the Senate for a
conference on SB 664.

Speaker pro tem Mays thereupon appointed Reps. Johnson, Schwartz and Weiland as
conferees on the part of the House.

REPORTS OF STANDING COMMITTEES
The Committee on Business, Commerce and Labor recommends SB 219 be amended
by substituting a new bill to be designated as ``House Substitute for SENATE BILL No.
219,'' as follows:

``HOUSE Substitute for SENATE BILL No. 219

By Committee on Business, Commerce and Labor

``AN ACT concerning the workers compensation act; amending K.S.A. 44-510c, 44-516, 44-
519, 44-527, 44-557, 44-576, 44-5,104 and 44-5,122 and K.S.A. 1999 Supp. 44-501, 44-
508, 44-510b, 44-510d, 44-531, 44-550b, 44-556, 44-557a, 44-567, 44-570, 44-5,120 and
44-5,125 and repealing the existing sections; also repealing K.S.A. 44-513 and K.S.A.
1999 Supp. 44-501a and 44-510.'';

and the substitute bill be passed.

(H. Sub. for SB 219 was thereupon introduced and read by title.)

On motion of Rep. Glasscock, the House recessed until 2:00 p.m.

______ Afternoon Session The House met pursuant to recess with Speaker pro tem Mays in the chair.

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to Senate Substitute for HB 2476, 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 as Senate Substitute for House Bill No.
2476, as follows:

On page 1, in line 37, by striking the comma, where it appears the second time, and
inserting ``and''; in line 38, by striking ``and Washburn university''; following line 39, by
inserting the following:

``(C) for Washburn university, an aggregate amount of at least $300,000;'';

Also on page 1, in line 40, by striking ``(C)'' and inserting ``(D)''; in line 42, by striking
``(D)'' and inserting ``(E)'';

On page 2, in line 36, by striking ``Upon'' and inserting ``Except as otherwise provided in
this subsection, upon''; in line 42, after the period by inserting: ``The state board of regents
shall not make any certification to the director of accounts and reports under this subsection
prior to July 1, 2001.'';

On page 4, in line 36, by striking ``July''; in line 37, by striking ``1, 2001, and'';

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

Dave Kerr

Barbara Lawrence

Marge Petty
Conferees on the part of Senate

Ralph M. Tanner

Cindy Empson

Eber Phelps
Conferees on part of House

On motion of Rep. Tanner, the conference committee report on S. Sub. for HB 2476
was adopted.

Call of the House was demanded.

On roll call, the vote was: Yeas 123; Nays 2; Present but not voting: 0; Absent or not
voting: 0.

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

Nays: Ballou, O'Connor.

Present but not voting: None.

Absent or not voting: None.

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2757, 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.

Sandy Praeger

Larry D. Salmans

Chris Steineger
Conferees on the part of Senate

Garry Boston

Gerald G. Geringer

Jerry Henry
Conferees on part of House

On motion of Rep. Boston, the conference committee report on HB 2757 was adopted.

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

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

Nays: None.

Present but not voting: None.

Absent or not voting: Henry.

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2860, 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.

David R. Corbin

Stephen R. Morris

Donald E. Biggs
Conferees on the part of Senate

Joann Freeborn

Gerry Ray

Vaughn L. Flora
Conferees on part of House

On motion of Rep. Freeborn, the conference committee report on HB 2860 was adopted.

On roll call, the vote was: Yeas 115; Nays 10; Present but not voting: 0; Absent or not
voting: 0.

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

Nays: Benlon, Campbell, Henderson, Howell, McCreary, McKechnie, Palmer, Spangler,
Swenson, Vickrey.

Present but not voting: None.

Absent or not voting: None.

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2883, 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:

On page 1, in line 28, by striking ``Intentionally failing'' and inserting ``The failure''; in
line 30, by striking ``intentionally'';

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

Ben Vidricksen

Nick Jordan

Mark Gilstrap
Conferees on the part of Senate

Gary K. Hayzlett

John Ballou

Janice L. Pauls
Conferees on part of House

On motion of Rep. Hayzlett, the conference committee report on HB 2883 was adopted.

On roll call, the vote was: Yeas 99; Nays 25; Present but not voting: 1; Absent or not
voting: 0.

Yeas: Aday, Adkins, Alldritt, Aurand, Ballard, Barnes, Beggs, Bethell, Boston, Burroughs,
Compton, Cox, Dean, Dreher, Edmonds, Empson, Farmer, Feuerborn, Findley, Flaharty,
Flora, Flower, Freeborn, Garner, Gatewood, Geringer, Gilbert, Glasscock, Grant, Gregory,
Hayzlett, Helgerson, Henry, Holmes, Horst, Huff, Humerickhouse, Hutchins, Jennison,
Johnson, Johnston, Kirk, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin,
Lloyd, M. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKinney, Mer-
rick, Minor, Myers, Neufeld, Nichols, O'Brien, O'Connor, O'Neal, Pauls, E. Peterson, J.
Peterson, Phelps, Pottorff, Powell, Powers, Ray, Reardon, Reinhardt, Ruff, Schwartz, Sharp,
Showalter, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Tedder, Thimesch,
Toelkes, Tomlinson, Toplikar, Vickrey, Wagle, Weber, Weiland, Wells, Welshimer, Wilk.

Nays: Allen, Ballou, Benlon, Campbell, Carmody, Crow, Dahl, Faber, Haley, Henderson,
Hermes, Howell, Jenkins, Klein, Light, Lightner, P. Long, Loyd, Mollenkamp, Jim Morri-
son, Judy Morrison, Osborne, Palmer, Rehorn, Vining.

Present but not voting: Shriver.

Absent or not voting: None.

MOTIONS TO CONCUR AND NONCONCUR
On motion of Rep. Freeborn, the House concurred in Senate amendments to HB 2985,
An act relating to appropriation of water for use in another state; amending K.S.A. 82a-726
and repealing the existing section, by Committee on Environment. (The House requested
the Senate to return the bill, which was in conference).

On roll call, the vote was: Yeas 125; Nays 0; Present but not voting: 0; Absent or not
voting: 0.

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

Nays: None.

Present but not voting: None.

Absent or not voting: None.

On motion of Rep. Lane, the House concurred in Senate amendments to HB 2580, An
act concerning consumer protection; relating to unsolicited consumer telephone calls;
amending K.S.A. 1999 Supp. 50-670 and repealing the existing section, by Representative
Johnston. (The House requested the Senate to return the bill, which was in conference).

On roll call, the vote was: Yeas 122; Nays 3; Present but not voting: 0; Absent or not
voting: 0.

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

Nays: Ballou, Dean, Faber.

Present but not voting: None.

Absent or not voting: None.

REPORTS OF STANDING COMMITTEES
The Committee on Judiciary recommends HB 3051 be passed.

Your committee on Appropriations recommends SB 660, as amended by Senate Com-
mittee, be amended on page 1, in line 15, before ``The'', by inserting ``(a)''; following line
30 by inserting the following material to read as follows:

``(b) In addition to other renovations, reconstructions, repairs or improvements and
within the funds appropriated and available therefor, the capital improvement project ap-
proved by this section may include portions that (1) address issues of health and safety, (2)
modernize building systems, including the technology infrastructure, (3) preserve the artistic
and historic integrity of the state capitol, specifically regarding works of art, public spaces,
building materials, light wells and skylights and the exterior, and (4) utilize and improve
space available, including the basement, to increase the functionality of the state capitol as
a working capitol.'';

Also on page 1, in line 32, by striking ``the'', the second time it appears; in line 33, by
striking ``moneys in the state general fund'', and inserting ``that portion of state moneys
available for investment by the pooled money investment board that is''; in line 35, by striking
``receipts from'' and inserting ``amount received for''; in line 37, by striking ``state general'';
also in line 37, after ``the'' the second time it appears, by inserting ``state general'';

On page 3, following line 40, by inserting the following material to read as follows:

``(i) On or after the effective date of this act and periodically thereafter, the state
treasurer shall certify to the board of trustees a portion of state moneys available for in-
vestment by the pooled money investment board that is equivalent to the aggregate net
amount received for unclaimed property. The state treasurer shall transfer the amount
certified to the board of trustees.'';

Also on page 3, in line 41, by striking ``(i)'' and inserting in lieu thereof ``(j)'';

On page 4, following line 17, by inserting the following material to read as follows:

``Sec. 3. K.S.A. 1999 Supp. 75-4234 is hereby amended to read as follows: 75-
4234. (a) Except as provided in subsection (c) and in subsection (f), all moneys in the state
treasury shall be invested as a single portfolio which is hereby designated as the pooled
money investment portfolio. The portfolio shall be invested in accordance with article 42 of
chapter 75 of the Kansas Statutes Annotated, and amendments thereto. The director of
investments shall compute daily the earnings of the portfolio, including realized gains and
losses. The pooled money investment board by written policy may provide for allocation of
unrealized gains or losses. The director of investments shall calculate on a daily basis and
shall deduct from earnings an administrative fee which shall be set by the board and applied
as a fixed percentage of moneys in the pooled money investment portfolio. The administra-
tive fee shall not exceed .25% annually on moneys deposited in the municipal investment
pool and .10% annually on other moneys in the pooled money investment portfolio. The
director of investments shall deposit the administrative fee in accordance with K.S.A. 75-
4235, and amendments thereto. The gross earnings, after deduction of the administrative
fee, shall be designated as the net earnings of the pooled money investment portfolio.

(b) The pooled money investment board may contract for the services of an external
investment advisor to provide advisory services concerning the investment policies and prac-
tices of the pooled money investment portfolio. Such investment advisor shall not be the
person or firm contracted with under K.S.A. 1999 Supp. 75-4264.

(c) Moneys in the employment security fund established by K.S.A. 44-712, and amend-
ments thereto, shall not be invested in the pooled money investment portfolio except as
may be authorized by the secretary of human resources pursuant to subsection (e) of K.S.A.
44-712, and amendments thereto.

(d) For moneys in funds designated in this subsection that are in the pooled money
investment portfolio and which are not invested in the municipal investment pool, interest
is to be paid on such moneys based on the average daily balance in the fund for each month
and the net earnings rate of the pooled money investment portfolio for such month. This
subsection shall apply to the state highway fund and funds for bonds and other debt instru-
ments of state agencies and authorities.

(e) Moneys in funds designated in this subsection shall not be invested in investment
options of the municipal investment pool fund for which the minimum term of such in-
vestment is less than 21 days. This subsection shall apply to state moneys, other than moneys
of municipalities as described in subsection (a) of K.S.A. 12-1675, and amendments thereto.

(f) The amount of state moneys certified by the state treasurer as equivalent to the
aggregate net amount received for unclaimed property under section 2, and amendments
thereto, shall be managed and invested as provided in section 2, and amendments thereto.

Sec. 4. K.S.A. 1999 Supp. 75-4234 is hereby repealed.'';

Also on page 4, in line 18, by striking ``3'' and inserting in lieu thereof ``5'';

On page 1, in the title, in line 12, before the period, by inserting ``; amending K.S.A.
1999 Supp. 75-4234 and repealing the existing section''; and the bill be passed as amended.

REPORT ON ENGROSSED BILLS
Sub. HB 2527; HB 2861 reported correctly engrossed March 31, 2000.

REPORT ON ENROLLED BILLS
HB 2103, 2501; S. Sub. for HB 2561; HB 2582, 2646, 2671, 2767, 2768, 2938,
3009 reported correctly enrolled, properly signed and presented to the governor on March
31, 2000.

REPORT ON ENROLLED RESOLUTIONS
HCR 5070 reported correctly enrolled and properly signed on April 5, 2000.

READING AND CORRECTION OF THE JOURNAL
In the Journal, on page 1843, Report on Enrolled Resolutions should be deleted and
should be replaced with the following:

REPORT ON ENGROSSED RESOLUTIONS
HCR 5070 reported correctly engrossed March 30, 2000.

On motion of Rep. Glasscock, the House adjourned until 9:00 a.m., Thursday, April 6,
2000.

CHARLENE SWANSON, Journal Clerk.

JANET E. JONES, Chief Clerk.