April 28, 2000

Journal of the House

SIXTY-FOURTH DAY ______

Hall of the House of Represenatitives

Topeka, KS, Friday, April 28, 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. Johnston was excused on excused absence by the Speaker.

Prayer by guest chaplain, Dr. Glen Holman, pastor, United Presbyterian Church, Sterling,
and guest of Rep. Bethell:

Almighty and gracious God, you have wonderful plans for us, and you have
the power to make them happen. I pray that you will give these legislators
knowledge of your will for the state of Kansas. May they remember that they
serve a public trust, beyond personal gain or glory. May they see that no state
lives for itself alone, but is responsible to you for peace, and for the well being
of all the people in the state.

Lord, as these representatives gather, nearing the end of this session, may
you give them energy, intelligence, sensitivity, imagination, and love as they
serve the people of the great state of Kansas. I pray in the strong name of
Jesus Christ the Lord. Amen.

The Pledge of Allegiance was led by Rep. Nichols.

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

Judiciary: Sub. SB 341.

COMMUNICATIONS FROM STATE OFFICERS
From Kathryn Carter, Chair, Commission on Judicial Qualifications, 1999 Annual Report.

From Tim Shallenburger, State Treasurer, Annual Report for Fiscal year 1999.

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

MESSAGE FROM THE SENATE
Announcing passage of SB 672.

The Senate adopts conference committee report on SB 366.

The Senate adopts conference committee report on SB 432.

The Senate adopts conference committee report on HB 2929.

The Senate accedes to the request of the House for a conference on Sub. HB 2144 and
has appointed Senators Corbin, Morris and Biggs as second conferees on the part of the
Senate.

The Senate accedes to the request of the House for a conference on HB 2814 and has
appointed Senators Salisbury, Morris and Downey as conferees on the part of the Senate.

The Senate accedes to the request of the House for a conference on HB 3019 and has
appointed Senators Oleen, Harrington and Jones 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 672.

INTRODUCTION OF ORIGINAL MOTIONS
On motion of Rep. Glasscock, pursuant to subsection (k) of Joint Rule 4 of the Joint Rules
of the Senate and House of Representatives, the rules were suspended for the purpose of
considering HB 2328, 2862, 3005, 3024, 2929; SB 59.

MOTIONS AND RESOLUTIONS OFFERED ON A PREVIOUS DAY
The motion of Rep. Kirk, in accordance with subsection (b) of House Rule 1309, that
HB 3024 be withdrawn from Committee on Appropriations and be placed on the calendar
under the order of business General Orders, was considered.

Roll call was demanded.

On roll call, the vote was: Yeas 49; Nays 74; Present but not voting: 0; Absent or not
voting: 2.

Yeas: Alldritt, Ballard, Barnes, Burroughs, Crow, Dean, Feuerborn, Findley, Flaharty,
Flora, Garner, Gatewood, Gilbert, Grant, Haley, Helgerson, Henderson, Henry, Kirk, Klein,
Kuether, Larkin, M. Long, McClure, McKechnie, McKinney, Minor, Judy Morrison, Nich-
ols, O'Brien, Pauls, E. Peterson, Phelps, Powers, Reardon, Rehorn, Reinhardt, Ruff, Sharp,
Showalter, Shriver, Spangler, Storm, Swenson, Tedder, Thimesch, Toelkes, Weiland,
Welshimer.

Nays: Aday, Adkins, Allen, Aurand, Ballou, Beggs, Benlon, Bethell, Boston, Campbell,
Carmody, Compton, Cox, Dahl, Dreher, Edmonds, Empson, Faber, Farmer, Flower, Free-
born, Geringer, Glasscock, Gregory, Hayzlett, Hermes, Holmes, Horst, Howell, Huff, Hu-
merickhouse, Hutchins, Jenkins, Jennison, Johnson, Phil Kline, Phill Kline, Krehbiel, Land-
wehr, Lane, Light, Lightner, Lloyd, P. Long, Loyd, Mason, Mayans, Mays, McCreary,
Merrick, Mollenkamp, Jim Morrison, Myers, Neufeld, O'Connor, O'Neal, Osborne, Palmer,
J. Peterson, Pottorff, Powell, Ray, Schwartz, Shultz, Sloan, Stone, Tanner, Tomlinson, To-
plikar, Vickrey, Vining, Wagle, Weber, Wilk.

Present but not voting: None.

Absent or not voting: Johnston, Wells.

Not having received the required 70 votes, the motion did not prevail.

INTRODUCTION OF ORIGINAL MOTIONS
On emergency motion of Rep. Glasscock, pursuant to House Rule 2311, HB 3054 was
advanced to Final Action on Bills and Concurrent Resolutions, subject to amendment, de-
bate and roll call.

FINAL ACTION ON BILLS AND CONCURRENT RESOLUTIONS
HB 3054, An act providing for reconciliation of amendments to certain sections of the
Kansas Statutes Annotated; amending K.S.A. 1999 Supp. 19-101a, 20-367, 38-1808, 46-2201
and 75-7021, K.S.A. 1999 Supp. 16a-2-401, as amended by section 3 of 2000 House Bill
No. 2691, K.S.A. 32-920, as amended by section 1 of 2000 House Bill No. 2103, K.S.A.
1999 Supp. 32-937, as amended by section 1 of 2000 House Substitute for Senate Bill No.
568, K.S.A. 32-1032, as amended by section 4 of 2000 House Substitute for Senate Bill No.
568, K.S.A. 59-2287, as amended by section 7 of 2000 House Bill No. 2671, K.S.A. 1999
Supp. 65-1626, as amended by section 1 of 2000 Senate Bill No. 541, K.S.A. 75-4209, as
amended by section 15 of 2000 Senate Bill No. 501, and K.S.A. 75-4237, as amended by
section 16 of 2000 Senate Bill No. 501, and repealing the existing sections; also repealing
K.S.A. 1999 Supp. 19-101j, 20-367a, 31-133b, 38-1602b, 38-1808a, 46-2201a and 75-7021a,
K.S.A. 1999 Supp. 16a-1-301, as amended by section 1 of 2000 Senate Bill No. 445, K.S.A.
1999 Supp. 16a-2-401, as amended by section 2 of 2000 House Bill No. 2675, K.S.A. 32-
920, as amended by section 2 of 2000 House Bill No. 2762, K.S.A. 1999 Supp. 32-937, as
amended by section 1 of 2000 House Bill No. 2727, K.S.A. 32-1032, as amended by section
1 of 2000 House Bill No. 2976, K.S.A. 59-2287, as amended by section 7 of 2000 House
Bill No. 2673, K.S.A. 1999 Supp. 65-1626, as amended by section 1 of 2000 House Bill No.
2759, K.S.A. 75-4209, as amended by section 8 of 2000 Substitute for House Bill No. 2527,
and K.S.A. 75-4237, as amended by section 9 of 2000 Substitute for House Bill No. 2527,
was considered on final action.

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, Henry, Hermes, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins,
Jenkins, Jennison, Johnson, 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'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: Johnston.

The bill passed.

INTRODUCTION OF ORIGINAL MOTIONS
Having voted on the prevailing side, Rep. O'Neal moved, pursuant to House Rule 2303,
that the House reconsider its action in the adoption of the conference committee report on
Sub. HB 2683 (see HJ, p. 2007). The motion prevailed.

The question then reverted back to the motion to adopt the conference committee report
on Sub. HB 2683. Rep. O'Neal made a substitute motion to not adopt the conference
committee report and that a new conference committee be appointed. The motion prevailed.

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

MOTIONS TO CONCUR AND NONCONCUR
On motion of Rep. Tanner, the House concurred in Senate amendments to HB 2862,
An act concerning school districts; relating to the provision of transportation for pupils;
amending K.S.A. 1999 Supp. 72-1046b, 72-8302, 72-8303 and 72-8309 and repealing the
existing sections.

(The House requested the Senate to return the bill, which was in conference).

On roll call, the vote was: Yeas 123; Nays 1; 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, Dreher, Ed-
monds, 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, 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'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: Dean.

Present but not voting: None.

Absent or not voting: Johnston.

On motion of Rep. Neufeld, the House concurred in Senate amendments to HB 3005,
An act concerning maternity centers and child care facilities; relating to licensure thereof;
amending K.S.A. 1999 Supp. 65-504 and repealing the existing section. (The House re-
quested the Senate to return the bill, which was in conference).

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, Henry, Hermes, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins,
Jenkins, Jennison, Johnson, 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'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: Johnston.

On motion of Rep. Benlon, the House concurred in Senate amendments to HB 2328,
An act concerning elections; relating to advance voting; amending K.S.A. 1999 Supp. 25-
1122 and 25-1128 and repealing the existing sections. (The House requested the Senate to
return the bill, which was in conference).

On roll call, the vote was: Yeas 69; Nays 55; Present but not voting: 0; Absent or not
voting: 1.

Yeas: Aday, Adkins, Allen, Aurand, Ballou, Beggs, Benlon, Bethell, Boston, Campbell,
Carmody, Compton, Cox, Dahl, Dreher, Empson, Farmer, Flower, Freeborn, Geringer,
Glasscock, Hayzlett, Hermes, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins,
Jenkins, Jennison, Johnson, Phil Kline, Phill Kline, Krehbiel, Landwehr, Lane, Light, Light-
ner, Lloyd, Loyd, Mason, Mayans, Mays, McCreary, Merrick, Mollenkamp, Jim Morrison,
Judy Morrison, Myers, Neufeld, O'Neal, Osborne, Palmer, J. Peterson, Pottorff, Powell,
Ray, Schwartz, Shultz, Sloan, Stone, Tanner, Toplikar, Vickrey, Vining, Wagle, Weber, Wilk.

Nays: Alldritt, Ballard, Barnes, Burroughs, Crow, Dean, Edmonds, Faber, Feuerborn,
Findley, Flaharty, Flora, Garner, Gatewood, Gilbert, Grant, Gregory, Haley, Helgerson,
Henderson, Henry, Kirk, Klein, Kuether, Larkin, M. Long, P. Long, McClure, McKechnie,
McKinney, Minor, Nichols, O'Brien, O'Connor, Pauls, E. Peterson, Phelps, Powers, Rear-
don, Rehorn, Reinhardt, Ruff, Sharp, Showalter, Shriver, Spangler, Storm, Swenson, Ted-
der, Thimesch, Toelkes, Tomlinson, Weiland, Wells, Welshimer.

Present but not voting: None.

Absent or not voting: Johnston.

From Tim Shallenburger, State Treasurer, Annual Report for Fiscal Year 1999.

On motion of Rep. Glasscock, the House recessed until 4:00 p.m.

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

MESSAGE FROM THE SENATE
Announcing passage of SB 673.

Announcing passage of HB 2027, as amended by S. Sub. for HB 2027; HB 2838, as
amended.

The Senate concurs in House amendments to SB 510, and requests return of the bill.

The Senate concurs in House amendments to SB 380, and requests return of the bill.

The Senate adopts conference committee report on SB 12.

The Senate adopts conference committee report on SB 190.

The Senate adopts conference committee report on SB 574.

The Senate adopts conference committee report on HB 2017.

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

SB 673.

INTRODUCTION OF ORIGINAL MOTIONS
On motion of Rep. Glasscock, pursuant to subsection (k) of Joint Rule 4 of the Joint Rules
of the Senate and House of Representatives, the rules were suspended for the purpose of
considering S. Sub. for HB 2027; HB 2838, 2017; SB 393.

MOTIONS TO CONCUR AND NONCONCUR
On motion of Rep. Adkins, the House nonconcurred in Senate amendments to S. Sub.
for HB 2027 and asked for a conference.

Speaker pro tem Mays thereupon appointed Reps. Adkins, J. Peterson and Nichols as
conferees on the part of the House.

On motion of Rep. Powell, the House nonconcurred in Senate amendments to HB 2838
and asked for a conference.

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

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2929, 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, in line 39, by striking ``two of the directors shall be senior'' and inserting ``four
shall be persons from the public sector. The four appointees from the public sector shall
consist of one or more of the following: Senior''; in line 40, by striking the comma and
inserting ``governed by the board of regents or''; in line 42, by striking ``One director shall
be a''; by striking all of line 43;

On page 2, by striking all in line 1;

On page 4, following line 18, by inserting the following sections:

``Sec. 2. K.S.A. 1999 Supp. 74-50,103 is hereby amended to read as follows: 74-50,103.
As used in the IMPACT act unless the context clearly requires otherwise:

(a) ``Act'' means the Kansas investments in major projects and comprehensive training
act.

(b) ``Agreement'' means the agreement among an employer, an educational institution
and the secretary of commerce and housing concerning a SKILL project or a combined
SKILL project and major project investment and the agreement between an employer and
the secretary of commerce and housing concerning a major project investment.

(c) ``Bond'' means a public purpose bond issued for IMPACT projects by the Kansas
development finance authority.

(d) ``Date of commencement of the project'' means the date of the agreement.

(e) ``Educational institution'' means a community college, as defined by K.S.A. 71-701,
and amendments thereto, an area vocational school or area vocational-technical school, as
defined by K.S.A. 72-4412, and amendments thereto, a university, as defined by K.S.A. 72-
6501, and amendments thereto, or a state educational institution, as defined by K.S.A. 76-
711, and amendments thereto.

(f) ``Employee'' means a person employed in a new or retained job.

(g) ``Employer'' means a Kansas basic enterprise providing new jobs or retaining existing
jobs in conjunction with a project.

(h) ``IMPACT program'' or ``program'' means the major project investments and SKILL
projects undertaken by the department of commerce and housing in accordance with the
provisions of this act for a new or expanding Kansas basic enterprise.

~~(h)~~ (i) ``IMPACT project'' or ``project'' means a SKILL project, major project investment
or a combination of the two.

~~(i)~~ (j) ``Kansas basic enterprise'' means any enterprise:

(1) Which is located or principally based in Kansas; and

(2) which can provide demonstrable evidence that:

(A) It is primarily engaged in any one or more of the Kansas basic industries; or

(B) it is primarily engaged in the development or production of goods or the provision
of services for out-of-state sale; or

(C) it is primarily engaged in the production of goods or the provision of services which
will attract out-of-state buyers or consumers into the state; or

(D) it is primarily engaged in the production of raw materials, ingredients, or components
for other enterprises which export the majority of their products from the state; or

(E) it is a national or regional enterprise which is primarily engaged in interstate com-
merce or an affiliated management company of such an enterprise; or

(F) it is primarily engaged in the production of goods or the provision of services which
will supplant goods or services which would be imported into the state; or

(G) it is the corporate or regional headquarters of a multistate enterprise which is pri-
marily engaged in out-of-state industrial activities.

~~(j)~~ (k) ``Kansas basic industry'' means:

(1) Agriculture;

(2) mining;

(3) manufacturing;

(4) interstate transportation;

(5) wholesale trade which is primarily multistate in activity or which has a major import
supplanting effect within the state;

(6) financial services which are provided primarily for interstate or international
transactions;

(7) business services which are provided primarily in out-of-state markets;

(8) research and development of new products, processes, or technologies; or

(9) tourism activities which are primarily engaged in for the purpose of attracting out-
of-state tourists.

~~(k)~~ (l) ``Major project investment''

or ``investment'' means financial assistance to an employer to defray business costs including,
but not limited to, relocation expenses, building and equipment purchases, labor recruitment
and job retention.

(m) ``New job'' means a job in a new or expanding Kansas basic enterprise not including
jobs of recalled workers, or existing jobs that are vacant or other jobs that formerly existed
in the Kansas basic enterprise in Kansas.

~~(l)~~ (n) ``Primarily engaged'' means engagement in an activity by an enterprise to the extent
that not less than 51% of the gross income of the enterprise is derived from such
engagement.

~~(m) ``New job'' means a job in a new or expanding Kansas basic enterprise not including~~
~~jobs of recalled workers, or existing jobs that are vacant or other jobs that formerly existed~~
~~in the Kansas basic enterprise in Kansas.~~

~~(n) ``IMPACT program'' or ``program'' means the major project investments and SKILL~~
~~projects undertaken by the department of commerce and housing in accordance with the~~
~~provisions of this act for a new or expanding Kansas basic enterprise.~~

(o) ``Program costs'' means all necessary and incidental costs of providing program serv-
ices, except that program costs shall not include: (1) Any wages paid to persons receiving
education or training under a project, (2) any costs for purchase or lease of training equip-
ment that exceed 50% of total program costs for the project, and (3) any costs for admin-
istrative expenses of educational institutions that exceed 10% of total program costs for the
project.

(p) ``Program services'' means:

(1) New jobs training, including training development costs, except that the actual train-
ing period for any new job shall not exceed 36 months from the date the job is first filled
by an employee;

(2) adult basic education and job-related instruction;

(3) vocational and skill-assessment services and testing;

(4) training equipment for education institutions;

(5) material and supplies;

(6) administrative expenses of educational institutions for new jobs training programs;

(7) subcontracted services with other educational institutions, private colleges or univer-
sities or other federal, state or local agencies; and

(8) contracted or professional service;

(9) major project investments.

(q) ``Retained job'' means an existing job which will be lost without participation by the
employer under the provisions of the IMPACT program.

~~(q)~~ (r) ``SKILL project'' means a training arrangement which is the subject of an agree-
ment entered into between the educational institution and an employer to provide program
services.

Sec. 3. K.S.A. 1999 Supp. 74-50,104 is hereby amended to read as follows: 74-50,104.
(a) The secretary of commerce and housing shall administer the provisions of this act and
the IMPACT program established thereunder. The secretary of commerce and housing shall
encourage Kansas basic enterprises with similar training needs to cooperate in establishing
SKILL projects. The secretary of commerce and housing shall coordinate the SKILL pro-
gram with other job training programs administered by the department of commerce and
housing. The secretary of commerce and housing shall provide opportunities for coordina-
tion and cooperation of SKILL projects with other job training activities in Kansas.

(b) The secretary of commerce and housing shall adopt rules and regulations as follows:
(1) Prescribing review standards and priorities for approval of proposed agreements under
this act, including appropriate incentives for cooperation among projects, in order to max-
imize the number of new jobs created with respect to individual Kansas basic enterprises,
which will remain in Kansas, and (2) prescribing limits on program costs and on project and
program size in relation to the number of new jobs created or the wages of new jobs created.
No agreement shall be approved which provides for program costs of a project under the
agreement of more than 90% of the amount equal to the estimated rate of withholding tax
applied to the estimated amount of gross wages of all the new jobs under the project over
a ten-year period.

(c) Notice of the approval of a project or program under the IMPACT act shall be pro-
vided to the chairpersons of the senate committee on commerce and the committee on eco-
nomic development of the house of representatives.

~~(c)~~ (d) The secretary of commerce and housing may adopt such other rules and regulations
as may be required for the implementation and administration of this act.

Sec. 4. K.S.A. 1999 Supp. 74-50,106 is hereby amended to read as follows: 74-50,106.
(a) The secretary of commerce and housing shall review applications for proposed agree-
ments submitted by employers in accordance with the standards and guidelines prescribed
by this act and by rules and regulations adopted under K.S.A. 74-50,104, and amendments
thereto. Each application for approval of a proposed agreement shall be accompanied by
information about the number and wages of the new or retained jobs created by the em-
ployer, documentation of existing training activities of the employer and such other infor-
mation as may be required by the secretary of commerce and housing.

(b) The secretary of commerce and housing may pool the funding requirements of pro-
jects which are the subject of proposed agreements to determine the funding requirements
of the SKILL projects under consideration to facilitate the issuance of bonds by the Kansas
development finance authority.

(c) The secretary of commerce and housing is hereby authorized to expend funds raised
pursuant to this act on major project investments. The secretary shall adopt guidelines
consistent with this act concerning firm eligibility for major project investments and shall
otherwise administer the major project investment portion of the IMPACT act.

(d) In order for an employer to be eligible for a major project investment, the employer
must:

(1) Annually make an investment in training and education of the employer's employees
that exceeds 2% of the employer's total annual payroll costs; or

(2) agree that a portion of any funds available under the agreement be spent directly on
employee education and training.

(e) An employer not creating new jobs shall not be eligible for participation in an IMPACT
program unless the employer meets the following criteria: (1) Maintains a minimum of 1,000
retained jobs; (2) makes a capital investment of at least $250,000,000; and (3) the secretary
of commerce and housing finds that the program or project will be a major factor in the
Kansas basic enterprise remaining in Kansas.

~~(e)~~ (f) Prior to obtaining financing from the Kansas development finance authority for
any project, group of projects or major project investment for one or more employers, the
secretary of commerce and housing shall present each such project to the governor's council
on work force training and investment for review and approval. No agreement shall be
approved by the secretary of commerce and housing unless each project under the agree-
ment has been reviewed and finally approved by the governor's council on work force
training and investment.

Sec. 5. K.S.A. 1999 Supp. 74-50,111 is hereby amended to read as follows: 74-50,111.
The secretary of commerce and housing shall annually report on activities under the IM-
PACT act, pursuant to K.S.A. 1999 Supp. 74-5049, and amendments thereto. Each report
shall contain information regarding the number and characteristics of the new jobs created
or jobs retained in Kansas for which SKILL projects or major project investments have been
financed under this act, including a report on any such new or retained jobs which do not
continue to exist and the circumstances and effect of any such discontinuances.

Sec. 6. K.S.A. 1999 Supp. 74-50,115 is hereby amended to read as follows: 74-50,115.
(a) A manufacturing business may be eligible for a sales tax exemption under the provisions
of subsection (cc) of K.S.A. 79-3606, and amendments thereto, if the manufacturing business
complies with the following requirements:

(1) A manufacturing business shall provide documented evidence of job expansion in-
volving the employment of at least two additional full-time employees; and

(2) a manufacturing business located within the state of Kansas that has documented
evidence of job expansion as provided in paragraph (1), which relocates in another city or
county within the state of Kansas must receive approval from the secretary prior to qualifying
for the sales tax exemption in subsection (cc) of K.S.A. 79-3606, and amendments thereto,
except that approval by the secretary shall not be required if the manufacturing business
relocates within the same city.

(b) A nonmanufacturing business may be eligible for a sales tax exemption under the
provisions of subsection (cc) of K.S.A. 79-3606, and amendments thereto, if the nonman-
ufacturing business complies with the following requirements:

(1) A nonmanufacturing business shall provide documented evidence of job expansion
involving the employment of at least five additional full-time employees; and

(2) a nonmanufacturing business located within the state of Kansas that has documented
evidence of job expansion as provided in paragraph (1), which relocates in another city or
county within the state of Kansas must receive approval from the secretary prior to qualifying
for the sales tax exemption in subsection (cc) of K.S.A. 79-3606, and amendments thereto,
except that approval by the secretary shall not be required if the nonmanufacturing business
relocates within the same city.

(c) A retail business may qualify for the sales tax exemption under subsection (cc) of
K.S.A. 79-3606, and amendments thereto, if the retail business complies with the following
requirements:

(1) A retail business shall provide documented evidence of job expansion involving the
employment of at least two additional full-time employees; and

(2) such retail business locates or expands to a city having a population of 2,500 or less,
as determined by the latest United States federal census.

(d) Any person constructing, reconstructing, remodeling or enlarging a facility which will
be leased in whole or in part for a period of five years or more to a business that would be
eligible for a sales tax exemption hereunder if such business had constructed, reconstructed,
enlarged or remodeled such facility or portion thereof itself shall be entitled to the sales tax
exemption under the provisions of subsection (cc) of K.S.A. 79-3606, and amendments
thereto. When such person leases less than the total facility to an eligible business, a project
exemption certificate may be granted on: (1) The total cost of constructing, reconstructing,
remodeling or enlarging, the facility multiplied by a fraction given by dividing the number
of leased square feet eligible for the sales tax exemption by the total square feet being con-
structed, reconstructed, remodeled or enlarged; or (2) the actual cost of constructing, recon-
structing, remodeling or enlarging that portion of the facility to be occupied by the eligible
business, as the person may elect.

(e) A business may qualify for a sales tax exemption under subsection (cc) of K.S.A. 79-
3606, and amendments thereto, without regard to any of the foregoing requirements of this
section if it is certified as a qualified firm by the secretary of commerce and housing pursuant
to K.S.A. 1999 Supp. 74-50,131, and amendments thereto, and is entitled to the corporate
tax credit established in K.S.A. 1999 Supp. 74-50,132, and amendments thereto, or has
received written approval for participation and has participated, during the tax year in which
the exemption is claimed, in training assistance by the department of commerce and housing
under the Kansas industrial training, Kansas industrial retraining or state of Kansas invest-
ments in lifelong learning program.

(f) The secretary may adopt rules and regulations to implement and administer the pro-
visions of this section.

Sec. 7. K.S.A. 1999 Supp. 74-50,151 is hereby amended to read as follows: 74-50,151.
(a) There is hereby created in the state treasury the Kansas economic opportunity initiatives
fund. Subject to acts of the legislature applicable thereto, the moneys in the Kansas eco-
nomic opportunity initiatives fund shall be used only for the purposes prescribed by this
section.

(b) All expenditures made pursuant to this act 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 governor or the governor's designee. The governor may approve
a warrant upon certification, by the secretary of commerce and housing, that an economic
emergency or unique opportunity exists which warrant funding for a strategic economic
intervention by such state agency or agencies to address expenses involved in securing
economic benefits or avoiding or remedying economic losses related to:

(1) A major expansion of an existing Kansas commercial enterprise;

(2) the potential location in Kansas of the operations of a major employer;

(3) the award of a significant federal or private sector grant which has a financial matching
requirement;

(4) the departure from Kansas or the substantial reduction of the operations of a major
employer; and

(5) the closure or the substantial reduction of a major federal or state institution or
facility.

(c) An intervention strategy may include financial assistance in the form of grants, loans
or both. The department of commerce and housing shall adopt written guidelines concerning
the terms and conditions of any such loans. However, all repaid funds shall be credited to
the Kansas economic opportunity initiatives fund. No intervention strategy approved pur-
suant to this act shall facilitate the moving of an existing Kansas firm to another location
within the state unless such restriction is waived by the secretary of commerce and housing.
Every intervention strategy approved pursuant to this act shall identify the intended out-
comes to be realized by the strategy for which funding is sought.

(d) The department of commerce and housing and Kansas, Inc. shall make joint findings
concerning the costs and benefits, on both a local and statewide basis, of projects proposed
pursuant to this act. Prior to allocation of any funds pursuant to this act, the governor shall
review the cost-benefit findings performed on each project.

(e) The director of the budget and the director of the legislative research department
shall consult periodically and review the balance credited to and the estimated receipts to
be credited to the state economic development initiatives fund during the fiscal year. During
any period when the legislature is not in session, upon a finding by the director of the budget
in consultation with the director of the legislative research department that the total of the
unencumbered balance and estimated receipts to be credited to the state economic devel-
opment initiatives fund during a fiscal year are insufficient to fund the budgeted expendi-
tures and transfers from the state economic development initiatives fund for the fiscal year
in accordance with the provisions of appropriation acts, the director of the budget shall
make a certification of such finding to the governor. Upon approval by the governor, the
director of accounts and reports shall transfer the amount of moneys from the Kansas
economic opportunity initiatives fund to the state economic development initiatives fund
that is required, in accordance with a certification by the director of the budget under this
subsection, to fund the budgeted expenditures and transfers from the state economic de-
velopment initiatives fund for the fiscal year in accordance with the provisions of appropri-
ation acts, as specified by the director of the budget pursuant to such certification.

(f) On or before the 10th day of each month, the director of accounts and reports shall
transfer from the state general fund to the state economic development initiatives fund
interest earnings based on:

(1) The average daily balance of moneys in the Kansas economic opportunity initiatives
fund for the preceding month; and

(2) the net earnings rate for the pooled money investment portfolio for the preceding
month.

(g) A five member panel consisting of the secretary of commerce and housing, the pres-
ident of Kansas, Inc., the president of the Kansas technology enterprise corporation, the
private sector chairperson of the board of Kansas, Inc. and the private sector chairperson
of the Kansas technology enterprise corporation shall review annually the propriety of pro-
jects funded under this section. The panel shall report its findings in writing to the governor,
the economic development committee of the house of representatives, the senate commerce
committee and the joint committee on economic development.

Sec. 8. K.S.A. 1999 Supp. 74-50,131 is hereby amended to read as follows: 74-50,131.
Commencing after December 31, 1999: (a) As used in this act: ``Qualified firm'' means a for-
profit business establishment, subject to state income, sales or property taxes, identified
under the ~~manufacturing standard industrial classification~~ (SIC) codes as in effect July 1,
1993, major groups 20 through 39, major groups 40 through 51, and major groups 60 through
89,; identified under the North American industry classification system (NAICS) as in effect
on October 1, 2000, or is identified as a corporate or regional headquarters or back-office
operation of a national or ~~multi-nation~~ multi-national corporation regardless of SIC code or
NAICS designation. The secretary of commerce and housing shall determine eligibility when
a difference exists between a firm's SIC code and NAICS designation. A business establish-
ment may be assigned a standard industrial classification code or NAICS designation ac-
cording to the primary business activity at a single physical location in the state.

(b) In the case of firms in major groups 40 through 51, and major groups 60 through 89,
or the appropriate NAICS designation the business establishment must also demonstrate
the following:

(1) More than ~~one-half~~ 1/2 of its gross revenues are a result of sales to commercial or
governmental customers outside the state of Kansas; or

(2) more than ~~one-half~~ 1/2 of its gross revenues are a result of sales to Kansas manufac-
turing firms within major groups 20 through 39 or the appropriate NAICS designation; or

(3) more than ~~one-half~~ 1/2 of its gross revenues are a result of a combination of sales
described in (1) and (2).

(c) For purposes of determining whether one of the average wage options described in
subsection (d) below is satisfied, business establishments located within a metropolitan
county, as defined in K.S.A. 1999 Supp. 74-50,114, and amendments thereto, will be com-
pared only to other businesses within that metropolitan county, and business establishments
located outside of a metropolitan county will be compared to businesses within an aggre-
gation of counties representing the business establishment's region of the state, which re-
gional aggregation will exclude metropolitan counties. Such aggregation shall be determined
by the department of commerce and housing.

(d) Additionally, a business establishment having met the criteria as established in sub-
section (a) or (b), and using the comparison method described in subsection (c), must meet
one of the following criteria:

(1) The establishment with 500 or fewer full-time equivalent employees will provide an
average wage that is above the average wage paid by all firms with 500 or fewer full-time
equivalent employees which share the same two-digit standard industrial classification code
or appropriate NAICS designation.

(2) The establishment with 500 or fewer full-time equivalent employees is the sole firm
within its two-digit standard industrial classification code or appropriate NAICS designation
which has 500 or fewer full-time equivalent employees.

(3) The establishment with more than 500 full-time equivalent employees will provide
an average wage that is above the average wage paid by firms with more than 500 full-time
equivalent employees which share the same two-digit standard industrial classification code
or appropriate NAICS designation.

(4) The establishment with more than 500 full-time equivalent employees is the sole firm
within its two-digit standard industrial classification code or appropriate NAICS designation
which has 500 or more full-time equivalent employees, in which event it shall either provide
an average wage that is above the average wage paid by all firms with 500 or fewer full-time
equivalent employees which share the same two-digit standard industrial classification code
or appropriate NAICS designation, or be the sole firm within its two-digit standard industrial
classification code or appropriate NAICS designation.

(e) As an alternative to the requirements of subsections (c) and (d), a firm having met
the requirements of subsections (a) or (b), may qualify, if excluding taxable disbursements
to company owners, the business establishment's annual average wage must be greater than
or equal to 1.5 times the aggregate average wage paid by industries covered by the em-
ployment security law based on data maintained by the secretary of human resources.

(f) For the purposes of this section, the number of full-time equivalent employees shall
be determined by ~~adding~~ dividing the number of hours worked by part-time employees
during the pertinent measurement interval by an amount equal to the corresponding multiple
of a 40-hour work week and adding the quotient to the number of full-time employees to
~~the number of hours worked by part-time employees divided by 40~~.

(g) The secretary of commerce and housing shall certify annually to the secretary of
revenue that a firm meets the criteria for a qualified firm and that the firm is eligible for
the benefits and assistance provided under this act. The secretary of commerce and housing
is hereby authorized to obtain any and all information necessary to determine such eligibility.
Information obtained under this section shall not be subject to disclosure pursuant to K.S.A.
45-215 et seq., and amendments thereto, but shall upon request be made available to the
legislative post audit division. The secretary of commerce and housing shall publish rules
and regulations for the implementation of this act. Such rules and regulations shall include,
but not be limited to:

(1) A definition of ``training and education'' for purposes of K.S.A. 1999 Supp. 74-50,132,
and amendments thereto.

(2) Establishment of eligibility requirements and application procedures for expenditures
from the high performance incentive fund created in K.S.A. 1999 Supp. 74-50,133, and
amendments thereto.

(3) Establishment of approval guidelines for private consultants authorized pursuant to
K.S.A. 1999 Supp. 74-50,133, and amendments thereto.

(4) Establishment of guidelines for prioritizing business assistance programs pursuant to
K.S.A. 1999 Supp. 74-50,133, and amendments thereto.

(5) A definition of ``commercial customer'' for the purpose of K.S.A. 1999 Supp. 74-
50,133, and amendments thereto.

(6) A definition of ``headquarters'' for the purpose of K.S.A. 1999 Supp. 74-50,133, and
amendments thereto.

(7) Establishment of guidelines concerning the use and disclosure of any information
obtained to determine the eligibility of a firm for the assistance and benefits provided for by
this act.

Sec. 9. K.S.A. 1999 Supp. 79-32,160a is hereby amended to read as follows: 79-32,160a.
(a) For taxable years commencing after December 31, ~~1997~~ 1999, any taxpayer who shall
invest in a qualified business facility, as defined in subsection (b) of K.S.A. 79-32,154, and
amendments thereto, and also meets the definition of a business in subsection (b) of K.S.A.
74-50,114, and amendments thereto, shall be allowed a credit for such investment, in an
amount determined under subsection (b) or (c), as the case requires, against the tax imposed
by the Kansas income tax act or where the qualified business facility is the principal place
from which the trade or business of the taxpayer is directed or managed and the facility has
facilitated the creation of at least 20 new full-time positions, against the premium tax or
privilege fees imposed pursuant to K.S.A. 40-252, and amendments thereto, or as measured
by the net income of financial institutions imposed pursuant to chapter 79, article 11 of the
Kansas Statutes Annotated, for the taxable year during which commencement of commercial
operations, as defined in subsection (f) of K.S.A. 79-32,154, and amendments thereto, occurs
at such qualified business facility. In the case of a taxpayer who meets the definition of a
manufacturing business in subsection (d) of K.S.A. 74-50,114, and amendments thereto, no
credit shall be allowed under this section unless the number of qualified business facility
employees, as determined under subsection (d) of K.S.A. 79-32,154, and amendments
thereto, engaged or maintained in employment at the qualified business facility as a direct
result of the investment by the taxpayer for the taxable year for which the credit is claimed
equals or exceeds two. In the case of a taxpayer who meets the definition of a nonmanu-
facturing business in subsection (f) of K.S.A. 74-50,114, and amendments thereto, no credit
shall be allowed under this section unless the number of qualified business facility employ-
ees, as determined under subsection (d) of K.S.A. 79-32,154, and amendments thereto,
engaged or maintained in employment at the qualified business facility as a direct result of
the investment by the taxpayer for the taxable year for which the credit is claimed equals
or exceeds five. Where an employee performs services for the taxpayer outside the qualified
business facility, the employee shall be considered engaged or maintained in employment
at the qualified business facility if (1) the employee's service performed outside the qualified
business facility is incidental to the employee's service inside the qualified business facility,
or (2) the base of operations or, the place from which the service is directed or controlled,
is at the qualified business facility.

(b) The credit allowed by subsection (a) for any taxpayer who invests in a qualified busi-
ness facility which is located in a designated nonmetropolitan region established under
K.S.A. 74-50,116, and amendments thereto, on or after the effective date of this act, shall
be a portion of the income tax imposed by the Kansas income tax act on the taxpayer's
Kansas taxable income, the premium tax or privilege fees imposed pursuant to K.S.A. 40-
252, and amendments thereto, or the privilege tax as measured by the net income of financial
institutions imposed pursuant to chapter 79, article 11 of the Kansas Statutes Annotated,
for the taxable year for which such credit is allowed, but in the case where the qualified
business facility investment was made prior to January 1, 1996, not in excess of 50% of such
tax. Such portion shall be an amount equal to the sum of the following:

(1) Two thousand five hundred dollars for each qualified business facility employee de-
termined under K.S.A. 79-32,154, and amendments thereto; plus

(2) one thousand dollars for each $100,000, or major fraction thereof, which shall be
deemed to be 51% or more, in qualified business facility investment, as determined under
K.S.A. 79-32,154, and amendments thereto.

(c) The credit allowed by subsection (a) for any taxpayer who invests in a qualified busi-
ness facility, which is not located in a nonmetropolitan region established under K.S.A. 74-
50,116, and amendments thereto, and which also meets the definition of business in sub-
section (b) of K.S.A. 74-50,114, and amendments thereto, on or after the effective date of
this act, shall be a portion of the income tax imposed by the Kansas income tax act on the
taxpayer's Kansas taxable income, the premium tax or privilege fees imposed pursuant to
K.S.A. 40-252, and amendments thereto, or the privilege tax as measured by the net income
of financial institutions imposed pursuant to chapter 79, article 11 of the Kansas Statutes
Annotated, for the taxable year for which such credit is allowed, but in the case where the
qualified business facility investment was made prior to January 1, 1996, not in excess of
50% of such tax. Such portion shall be an amount equal to the sum of the following:

(1) One thousand five hundred dollars for each qualified business facility employee as
determined under K.S.A. 79-32,154, and amendments thereto; and

(2) one thousand dollars for each $100,000, or major fraction thereof, which shall be
deemed to be 51% or more, in qualified business facility investment as determined under
K.S.A. 79-32,154, and amendments thereto.

(d) The credit allowed by subsection (a) for each qualified business facility employee and
for qualified business facility investment shall be a one-time credit. If the amount of the
credit allowed under subsection (a) exceeds the tax imposed by the Kansas income tax act
on the taxpayer's Kansas taxable income, the premium tax and privilege fees imposed pur-
suant to K.S.A. 40-252, and amendments thereto, or the privilege tax as measured by the
net income of financial institutions imposed pursuant to chapter 79, article 11 of the Kansas
Statutes Annotated for the taxable year, or in the case where the qualified business facility
investment was made prior to January 1, 1996, 50% of such tax imposed upon the amount
which exceeds such tax liability or such portion thereof may be carried over for credit in
the same manner in the succeeding taxable years until the total amount of such credit is
used. Except that, before the credit is allowed, a taxpayer, who meets the definition of a
manufacturing business in subsection (d) of K.S.A. 74-50,114, and amendments thereto,
shall recertify annually that the net increase of a minimum of two qualified business facility
employees has continued to be maintained and a taxpayer, who meets the definition of a
nonmanufacturing business in subsection (f) of K.S.A. 74-50,114, and amendments thereto,
shall recertify annually that the net increase of a minimum of five qualified business em-
ployees has continued to be maintained.

(e) Notwithstanding the foregoing provisions of this section, any taxpayer qualified and
certified under the provisions of K.S.A. 1999 Supp. 74-50,131, and amendments thereto,;
which, prior to making a commitment to invest in a qualified Kansas business, has filed a
certificate of intent to invest in a qualified business facility in a form satisfactory to the
secretary of commerce and housing; and that has received written approval from the sec-
retary of commerce and housing for participation and has participated, during the tax year
for which the exemption is claimed, in the Kansas industrial training, Kansas industrial
retraining or the state of Kansas investments in lifelong learning program or is eligible for
the tax credit established in K.S.A. 1999 Supp. 74-50,132, and amendments thereto, shall
be entitled to a credit in an amount equal to 10% of that portion of the qualified business
facility investment which exceeds $50,000 in lieu of the credit provided in subsection (b)(2)
or (c)(2) without regard to the number of qualified business facility employees engaged or
maintained in employment at the qualified business facility. The credit allowed by this
subsection shall be a one-time credit. If the amount thereof exceeds the tax imposed by the
Kansas income tax act on the taxpayer's Kansas taxable income or the premium tax or
privilege fees imposed pursuant to K.S.A. 40-252, and amendments thereto, or the privilege
tax as measured by net income of financial institutions imposed pursuant to chapter 79,
article 11 of the Kansas Statutes Annotated for the taxable year, the amount thereof which
exceeds such tax liability may be carried forward for credit in the succeeding taxable year
or years until the total amount of the tax credit is used, except that no such tax credit shall
be carried forward for deduction after the 10th taxable year succeeding the taxable year in
which such credit initially was claimed and no carry forward shall be allowed for deduction
in any succeeding taxable year unless the taxpayer continued to be qualified and was recer-
tified for such succeeding taxable year pursuant to K.S.A. 1999 Supp. 74-50,131, and amend-
ments thereto.

(f) This section and K.S.A. 79-32,160b, and amendments thereto, shall be part of and
supplemental to the job expansion and investment credit act of 1976 and acts amendatory
thereof and supplemental thereto.''

By renumbering sections accordinly;

Also on page 4, in line 19, following ``Supp.'', by inserting ``74-50,103, 74-50,104, 74-
50,106, 74-50,111, 74-50,115, 74-50,131, 74-50,151,''; also in line 19, by striking ``is'' and
inserting ``and 79-32,160a are'';

On page 1, in the title, in line 12, after ``Kansas'', by inserting ``economic development;
concerning Kansas''; also in line 12, by striking ``concern-'', in line 13, by striking ``ing senior
administrators;'' and inserting ``participation in Kansas enterprise zones and activities; ex-
penditures from Kansas economic initiatives fund; concerning Kansas investments in major
projects and comprehensive training;''; also in line 13, after ``Supp.'', by inserting ``74-50,103,
74-50,104, 74-50,106, 74-50,111, 74-50,115, 74-50,131, 74-50,151,''; also in line 13, after
``and'', by inserting ``79-32,160a and''; in line 14, by striking ``section'' and inserting
``sections'';

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

Alicia Salisbury

Pat Ranson

Jim Barone
Conferees on the part of Senate

William G. Mason

Jene Vickrey

Annie Kuether
Conferees on part of House

On motion of Rep. Mason, the conference committee report on HB 2929 was adopted.

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

Yeas: Aday, Adkins, Alldritt, Allen, Aurand, Ballard, Barnes, Beggs, Benlon, Bethell, Bos-
ton, Burroughs, Campbell, 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, Henderson,
Henry, Hermes, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jenkins, Jenni-
son, Johnson, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Lar-
kin, Light, Lightner, Lloyd, M. Long, P. Long, Loyd, Mason, Mayans, Mays, McClure,
McCreary, McKechnie, McKinney, Merrick, Minor, Mollenkamp, Jim Morrison, Judy Mor-
rison, 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, Carmody.

Present but not voting: None.

Absent or not voting: Johnston.

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 59, 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 1, by striking all in lines 18 through 43;

By striking all on pages 2 through 14 and and inserting the following:

``Section 1. K.S.A. 1999 Supp. 12-187 is hereby amended to read as follows: 12-187. (a)
(1) No city shall impose a retailers' sales tax under the provisions of this act without the
governing body of such city having first submitted such proposition to and having received
the approval of a majority of the electors of the city voting thereon at an election called and
held therefor. The governing body of any city may submit the question of imposing a re-
tailers' sales tax and the governing body shall be required to submit the question upon
submission of a petition signed by electors of such city equal in number to not less than
10% of the electors of such city.

(2) The governing body of any class B city located in any county which does not impose
a countywide retailers' sales tax pursuant to paragraph (5) of subsection (b) may submit the
question of imposing a retailers' sales tax at the rate of .25%, .5%, .75% or 1% and pledging
the revenue received therefrom for the purpose of financing the provision of health care
services, as enumerated in the question, to the electors at an election called and held
thereon. The tax imposed pursuant to this paragraph shall be deemed to be in addition to
the rate limitations prescribed in K.S.A. 12-189, and amendments thereto. As used in this
paragraph, health care services shall include but not be limited to the following: Local health
departments, city, county or district hospitals, city or county nursing homes, preventive
health care services including immunizations, prenatal care and the postponement of entry
into nursing homes by home health care services, mental health services, indigent health
care, physician or health care worker recruitment, health education, emergency medical
services, rural health clinics, integration of health care services, home health services and
rural health networks.

(b) (1) The board of county commissioners of any county may submit the question of
imposing a countywide retailers' sales tax to the electors at an election called and held
thereon, and any such board shall be required to submit the question upon submission of
a petition signed by electors of such county equal in number to not less than 10% of the
electors of such county who voted at the last preceding general election for the office of
secretary of state, or upon receiving resolutions requesting such an election passed by not
less than 2/3 of the membership of the governing body of each of one or more cities within
such county which contains a population of not less than 25% of the entire population of
the county, or upon receiving resolutions requesting such an election passed by 2/3 of the
membership of the governing body of each of one or more taxing subdivisions within such
county which levy not less than 25% of the property taxes levied by all taxing subdivisions
within the county.

(2) The board of county commissioners of Atchison, Barton, Butler, Cowley, Cherokee,
Crawford, Ford, Jefferson, Lyon, Montgomery, Neosho, Osage, Ottawa, Riley, Saline, Sew-
ard, Wabaunsee, Wilson and Wyandotte counties may submit the question of imposing a
countywide retailers' sales tax and pledging the revenue received therefrom for the purpose
of financing the construction or remodeling of a courthouse, jail, law enforcement center
facility or other county administrative facility, to the electors at an election called and held
thereon. The tax imposed pursuant to this paragraph shall expire when sales tax sufficient
to pay all of the costs incurred in the financing of such facility has been collected by retailers
as determined by the secretary of revenue. Nothing in this paragraph shall be construed to
allow the rate of tax imposed by Butler, Cowley, Lyon, Montgomery or, Neosho, Riley or
Wilson county pursuant to this paragraph to exceed or be imposed at any rate other than
the rates prescribed in K.S.A. 12-189, and amendments thereto.

(3) (A) Except as otherwise provided in this paragraph, the result of the election held on
November 8, 1988, on the question submitted by the board of county commissioners of
Jackson county for the purpose of increasing its countywide retailers' sales tax by 1% is
hereby declared valid, and the revenue received therefrom by the county shall be expended
solely for the purpose of financing the Banner Creek reservoir project. The tax imposed
pursuant to this paragraph shall take effect on the effective date of this act and shall expire
not later than five years after such date.

(B) The result of the election held on November 8, 1994, on the question submitted by
the board of county commissioners of Ottawa county for the purpose of increasing its coun-
tywide retailers' sales tax by 1% is hereby declared valid, and the revenue received therefrom
by the county shall be expended solely for the purpose of financing the erection, construction
and furnishing of a law enforcement center and jail facility.

(4) The board of county commissioners of Finney and Ford counties may submit the
question of imposing a countywide retailers' sales tax at the rate of.25% and pledging the
revenue received therefrom for the purpose of financing all or any portion of the cost to be
paid by Finney or Ford county for construction of highway projects identified as system
enhancements under the provisions of paragraph (5) of subsection (b) of K.S.A. 68-2314,
and amendments thereto, to the electors at an election called and held thereon. Such elec-
tion shall be called and held in the manner provided by the general bond law. The tax
imposed pursuant to this paragraph shall expire upon the payment of all costs authorized
pursuant to this paragraph in the financing of such highway projects. Nothing in this para-
graph shall be construed to allow the rate of tax imposed by Finney or Ford county pursuant
to this paragraph to exceed the maximum rate prescribed in K.S.A. 12-189, and amendments
thereto. If any funds remain upon the payment of all costs authorized pursuant to this
paragraph in the financing of such highway projects in Finney county, the state treasurer
shall remit such funds to the treasurer of Finney county and upon receipt of such moneys
shall be deposited to the credit of the county road and bridge fund. If any funds remain
upon the payment of all costs authorized pursuant to this paragraph in the financing of such
highway projects in Ford county, the state treasurer shall remit such funds to the treasurer
of Ford county and upon receipt of such moneys shall be deposited to the credit of the
county road and bridge fund.

(5) The board of county commissioners of any county may submit the question of im-
posing a retailers' sales tax at the rate of .25%, .5%, .75% or 1% and pledging the revenue
received therefrom for the purpose of financing the provision of health care services, as
enumerated in the question, to the electors at an election called and held thereon. Whenever
any county imposes a tax pursuant to this paragraph, any tax imposed pursuant to paragraph
(2) of subsection (a) by any city located in such county shall expire upon the effective date
of the imposition of the countywide tax, and thereafter the state treasurer shall remit to
each such city that portion of the countywide tax revenue collected by retailers within such
city as certified by the director of taxation. The tax imposed pursuant to this paragraph shall
be deemed to be in addition to the rate limitations prescribed in K.S.A. 12-189, and amend-
ments thereto. As used in this paragraph, health care services shall include but not be limited
to the following: Local health departments, city or county hospitals, city or county nursing
homes, preventive health care services including immunizations, prenatal care and the post-
ponement of entry into nursing homes by home care services, mental health services, in-
digent health care, physician or health care worker recruitment, health education, emer-
gency medical services, rural health clinics, integration of health care services, home health
services and rural health networks.

(6) The board of county commissioners of Allen county may submit the question of
imposing a countywide retailers' sales tax at the rate of.5% and pledging the revenue received
therefrom for the purpose of financing the costs of operation and construction of a solid
waste disposal area or the modification of an existing landfill to comply with federal regu-
lations to the electors at an election called and held thereon. The tax imposed pursuant to
this paragraph shall expire upon the payment of all costs incurred in the financing of the
project undertaken. Nothing in this paragraph shall be construed to allow the rate of tax
imposed by Allen county pursuant to this paragraph to exceed or be imposed at any rate
other than the rates prescribed in K.S.A. 12-189 and amendments thereto.

(7) The board of county commissioners of Clay, Dickinson and Miami county may submit
the question of imposing a countywide retailers' sales tax at the rate of .50% in the case of
Clay and Dickinson county and at a rate of up to 1% in the case of Miami county, and
pledging the revenue received therefrom for the purpose of financing the costs of roadway
construction and improvement to the electors at an election called and held thereon. The
tax imposed pursuant to this paragraph shall expire after five years from the date such tax
is first collected.

(8) The board of county commissioners of Sherman county may submit the question of
imposing a countywide retailers' sales tax at the rate of .25%, .5% or .75% and pledging the
revenue therefrom for the purpose of financing the costs of the county roads 64 and 65
construction and improvement project. The tax imposed pursuant to this paragraph shall
expire upon payment of all costs authorized pursuant to this paragraph in the financing of
such project.

(9) The board of county commissioners of Cowley ~~and~~, Russell and Woodson county may
submit the question of imposing a countywide retailers' sales tax at the rate of.5% in the
case of Russell and Woodson county and at a rate of up to.25%, in the case of Cowley county
and pledging the revenue received therefrom for the purpose of financing economic de-
velopment initiatives or public infrastructure projects. The tax imposed pursuant to this
paragraph shall expire after five years from the date such tax is first collected.

(10) The board of county commissioners of Franklin county may submit the question of
imposing a countywide retailers' sales tax at the rate of .25% and pledging the revenue
received therefrom for the purpose of financing recreational facilities. The tax imposed pur-
suant to this paragraph shall expire upon payment of all costs authorized in financing such
facilities.

(c) The boards of county commissioners of any two or more contiguous counties, upon
adoption of a joint resolution by such boards, may submit the question of imposing a re-
tailers' sales tax within such counties to the electors of such counties at an election called
and held thereon and such boards of any two or more contiguous counties shall be required
to submit such question upon submission of a petition in each of such counties, signed by
a number of electors of each of such counties where submitted equal in number to not less
than 10% of the electors of each of such counties who voted at the last preceding general
election for the office of secretary of state, or upon receiving resolutions requesting such
an election passed by not less than 2/3 of the membership of the governing body of each of
one or more cities within each of such counties which contains a population of not less than
25% of the entire population of each of such counties, or upon receiving resolutions re-
questing such an election passed by 2/3 of the membership of the governing body of each of
one or more taxing subdivisions within each of such counties which levy not less than 25%
of the property taxes levied by all taxing subdivisions within each of such counties.

(d) Any city retailers' sales tax in the amount of.5% being levied by a city on July 1, 1990,
shall continue in effect until repealed in the manner provided herein for the adoption and
approval of such tax or until repealed by the adoption of an ordinance so providing. In
addition to any city retailers' sales tax being levied by a city on July 1, 1990, any such city
may adopt an additional city retailers' sales tax in the amount of.25% or.5%, provided that
such additional tax is adopted and approved in the manner provided for the adoption and
approval of a city retailers' sales tax. Any countywide retailers' sales tax in the amount of.5%
or 1% in effect on July 1, 1990, shall continue in effect until repealed in the manner provided
herein for the adoption and approval of such tax.

(e) A class D city shall have the same power to levy and collect a city retailers' sales tax
that a class A city is authorized to levy and collect and in addition, the governing body of
any class D city may submit the question of imposing an additional city retailers' sales tax
in the amount of .125%, .25%, .5% or.75% and pledging the revenue received therefrom
for economic development initiatives, strategic planning initiatives or for public infrastruc-
ture projects including buildings to the electors at an election called and held thereon. Any
additional sales tax imposed pursuant to this paragraph shall expire no later than five years
from the date of imposition thereof, except that any such tax imposed by any class D city
after the effective date of this act shall expire no later than 10 years from the date of im-
position thereof.

(f) Any city or county proposing to adopt a retailers' sales tax shall give notice of its
intention to submit such proposition for approval by the electors in the manner required by
K.S.A. 10-120, and amendments thereto. The notices shall state the time of the election and
the rate and effective date of the proposed tax. If a majority of the electors voting thereon
at such election fail to approve the proposition, such proposition may be resubmitted under
the conditions and in the manner provided in this act for submission of the proposition. If
a majority of the electors voting thereon at such election shall approve the levying of such
tax, the governing body of any such city or county shall provide by ordinance or resolution,
as the case may be, for the levy of the tax. Any repeal of such tax or any reduction or increase
in the rate thereof, within the limits prescribed by K.S.A. 12-189, and amendments thereto,
shall be accomplished in the manner provided herein for the adoption and approval of such
tax except that the repeal of any such city retailers' sales tax may be accomplished by the
adoption of an ordinance so providing.

(g) The sufficiency of the number of signers of any petition filed under this section shall
be determined by the county election officer. Every election held under this act shall be
conducted by the county election officer.

(h) The governing body of the city or county proposing to levy any retailers' sales tax
shall specify the purpose or purposes for which the revenue would be used, and a statement
generally describing such purpose or purposes shall be included as a part of the ballot
proposition.

Sec. 2. K.S.A. 1999 Supp. 12-188 is hereby amended to read as follows: 12-188. The
following classes of cities are hereby established for the purpose of imposing limitations and
prohibitions upon the levying of sales and excise taxes or taxes in the nature of an excise
upon sales or transfers of personal or real property or the use thereof, or the rendering or
furnishing of services by cities as authorized and provided by article 12, section 5, of the
constitution of the state of Kansas:

Class A cities. All cities in the state of Kansas which have the authority to levy and collect
excise taxes or taxes in the nature of an excise upon the sales or transfers of personal or real
property or the use thereof, or the rendering or furnishing of services by cities.

Class B cities. All cities in the state of Kansas which have the authority to levy and collect
excise taxes or taxes in the nature of an excise upon the sales or transfers of personal or real
property or the use thereof, or the rendering or furnishing of services for the purpose of
financing the provision of health care services.

Class C cities. All cities in the state of Kansas having a population of more than 290,000
located in a county having a population of more than 350,000 which has the authority to
levy and collect excise taxes or taxes in the nature of an excise upon the sales or transfers
of personal or real property or the use thereof, or the rendering or furnishing of services.

Class D cities. All cities in the state of Kansas located in Cowley, Ellis, Ellsworth, Finney,
Harper, Johnson, Labette, Lyon, Montgomery, Osage or, Reno or Woodson county or in
both Riley and Pottawatomie counties which have the authority to levy and collect excise
taxes or taxes in the nature of an excise upon the sales or transfers of personal or real property
or the use thereof, or the rendering or furnishing of services.

Sec. 3. K.S.A. 1999 Supp. 12-189 is hereby amended to read as follows: 12-189. Except
as otherwise provided by paragraph (2) of subsection (a) of K.S.A. 12-187, and amendments
thereto, the rate of any class A, class B or class C city retailers' sales tax shall be fixed in
the amount of .25%, .5%, .75% or 1% which amount shall be determined by the governing
body of the city. Except as otherwise provided by paragraph (2) of subsection (a) of K.S.A.
12-187, and amendments thereto, the rate of any class D city retailers' sales tax shall be
fixed in the amount of .25%, .5%, .75%, 1%, 1.125%, 1.25%, 1.5% or 1.75%. The rate of
any countywide retailers' sales tax shall be fixed in an amount of either .25%, .5%, .75% or
1% which amount shall be determined by the board of county commissioners, except that:

(a) The board of county commissioners of Wabaunsee county, for the purposes of para-
graph (2) of subsection (b) of K.S.A. 12-187, and amendments thereto, may fix such rate at
1.25%; the board of county commissioners of Osage county, for the purposes of paragraph
(2) of subsection (b) of K.S.A. 12-187, and amendments thereto, may fix such rate at 1.25%
or 1.5%; the board of county commissioners of Cherokee, Crawford, Ford, Saline, Seward
or Wyandotte county, for the purposes of paragraph (2) of subsection (b) of K.S.A. 12-187,
and amendments thereto, may fix such rate at 1.5%, the board of county commissioners of
Atchison county, for the purposes of paragraph (2) of subsection (b) of K.S.A. 12-187, and
amendments thereto, may fix such rate at 1.5% or 1.75% and the board of county commis-
sioners of Barton, Jefferson or Ottawa county, for the purposes of paragraph (2) of subsec-
tion (b) of K.S.A. 12-187, and amendments thereto, may fix such rate at 2%;

(b) the board of county commissioners of Jackson county, for the purposes of paragraph
(3) of subsection (b) of K.S.A. 12-187, and amendments thereto, may fix such rate at 2%;

(c) the boards of county commissioners of Finney and Ford counties, for the purposes
of paragraph (4) of subsection (b) of K.S.A. 12-187, and amendments thereto, may fix such
rate at .25%;

(d) the board of county commissioners of any county for the purposes of paragraph (5)
of subsection (b) of K.S.A. 12-187, and amendments thereto, may fix such rate at a per-
centage which is equal to the sum of the rate allowed to be imposed by a board of county
commissioners on the effective date of this act plus .25%, .5%, .75% or 1%, as the case
requires;

(e) the board of county commissioners of Dickinson county, for the purposes of paragraph
(7) of subsection (b) of K.S.A. 12-187, and amendments thereto, may fix such rate at 1.5%,
and the board of county commissioners of Miami county, for the purposes of paragraph (7)
of subsection (b) of K.S.A. 12-187, and amendments thereto, may fix such rate at 1.25%,
1.5%, 1.75% or 2%;

(f) the board of county commissioners of Sherman county, for the purposes of paragraph
(8) of subsection (b) of K.S.A. 12-187, and amendments thereto, may fix such rate at 1.5%,
1.75% or 2%; or

(g) the board of county commissioners of Russell county for the purposes of paragraph
(9) of subsection (b) of K.S.A. 12-187, and amendments thereto, may fix such rate at 1.5%;
or

(h) the board of county commissioners of Franklin county, for the purposes of paragraph
(10) of subsection (b) of K.S.A. 12-187, and amendments thereto, may fix such rate at 1.75%.

Any county or city levying a retailers' sales tax is hereby prohibited from administering
or collecting such tax locally, but shall utilize the services of the state department of revenue
to administer, enforce and collect such tax. Except as otherwise specifically provided in
K.S.A. 12-189a, and amendments thereto, such tax shall be identical in its application, and
exemptions therefrom, to the Kansas retailers' sales tax act and all laws and administrative
rules and regulations of the state department of revenue relating to the Kansas retailers'
sales tax shall apply to such local sales tax insofar as such laws and rules and regulations may
be made applicable. The state director of taxation is hereby authorized to administer, enforce
and collect such local sales taxes and to adopt such rules and regulations as may be necessary
for the efficient and effective administration and enforcement thereof.

Upon receipt of a certified copy of an ordinance or resolution authorizing the levy of a
local retailers' sales tax, the state director of taxation shall cause such taxes to be collected
within or without the boundaries of such taxing subdivision at the same time and in the
same manner provided for the collection of the state retailers' sales tax. All moneys collected
by the director of taxation under the provisions of this section shall be credited to a county
and city retailers' sales tax fund which fund is hereby established in the state treasury. Any
refund due on any county or city retailers' sales tax collected pursuant to this act shall be
paid out of the sales tax refund fund and reimbursed by the director of taxation from
collections of local retailers' sales tax revenue. Except for local retailers' sales tax revenue
required to be deposited in the redevelopment bond fund established under K.S.A. 1999
Supp. 74-8927, and amendments thereto, all local retailers' sales tax revenue collected within
any county or city pursuant to this act shall be apportioned and remitted at least quarterly
by the state treasurer, on instruction from the director of taxation, to the treasurer of such
county or city.

The director of taxation shall provide, upon request by a city or county clerk or treasurer
of any city or county levying a local retailers' sales tax, ~~a monthly report~~ monthly reports
identifying each retailer having a place of business in such city or county ~~and~~ setting forth
the tax liability and the amount of such tax remitted by each retailer during the preceding
month and identifying each business location maintained by the retailer within such city or
county. Such report shall be made available to the clerk or treasurer of such city or county
within a reasonable time after it has been requested from the director of taxation. The
director of taxation shall be allowed to assess a reasonable fee for the issuance of such report.
Information received by any city or county pursuant to this section shall be confidential,
and it shall be unlawful for any officer or employee of such city or county to divulge any
such information in employee is a class B misdemeanor, and such officer or employee shall
be dismissed from office.

Sec. 4. K.S.A. 1999 Supp. 12-1694 is hereby amended to read as follows: 12-1694. (a)
Any tax levied and collected pursuant to K.S.A. 12-1693, and amendments thereto, shall
become due and payable by the business monthly, on or before the 25th day of the month
immediately succeeding the month in which it is collected, with the first payment due and
payable on or before the 25th day of the month specified in the resolution of the governing
body which levies the tax, but any person filing an annual or quarterly return under the
Kansas retailers' sales tax act, as prescribed in K.S.A. 79-3607, and amendments thereto,
may, with the approval of the secretary of revenue and upon such conditions as the secretary
of revenue may prescribe, pay the tax required by this act on the same basis and at the same
time such person pays the retailer's sales tax. Each business shall make a true report to the
department of revenue, on a form prescribed by the secretary of revenue, providing such
information as may be necessary to determine the amounts to which any such tax shall apply
for all gross rental receipts for the applicable month or months, which report shall be
accompanied by the tax disclosed thereby. Records of gross rental receipts shall be kept
separate and apart from the records of other retail sales made by a business in order to
facilitate the examination of books and records as provided herein.

(b) The secretary of revenue or the secretary's authorized representative shall have the
right at all reasonable times during business hours to make such examination and inspection
of the books and records of a business as may be necessary to determine the accuracy of
such reports.

(c) The secretary of revenue is hereby authorized to administer and collect any transient
guest tax levied pursuant to this act and to adopt such rules and regulations as may be
necessary for the efficient and effective administration and enforcement of the collection
thereof. Whenever any business liable to pay any transient guest tax refuses or neglects to
pay the same, the amount, including any penalty, shall be collected in the manner prescribed
for the collection of the retailers' sales tax by K.S.A. 79-3617, and amendments thereto. All
of the taxes collected under the provisions of this act shall be paid into the state treasury
daily by the secretary of revenue, and the state treasurer shall place 2% of all taxes so
collected in the state general fund to defray the expenses of the department in administration
and enforcement of the collection thereof. The remainder of such taxes shall be credited to
the county and city transient guest tax fund, which fund is hereby established. All moneys
in the county and city transient guest tax fund shall be remitted at least quarterly by the
state treasurer, on instruction from the secretary of revenue, to the treasurers of those cities
which, by virtue of their participation in the election provided for in K.S.A. 12-1693, and
amendments thereto, are qualified to receive disbursements from such transient guest tax
fund for the amount collected within such city, and to the treasurer of such county for the
amount collected in the unincorporated areas of such county.

(d) The director of taxation shall provide, upon request by a city or county clerk or
treasurer of any city or county levying a transient guest tax, ~~a monthly report~~ monthly reports
identifying each person doing business in such city or county to which such tax is applicable
~~and setting forth the~~ tax liability and the amount of such tax remitted by such business
during the preceding month, and identifying each business location maintained by the person
within such city or county. Such report shall be made available to the clerk or treasurer of
such city or county within a reasonable time after it has been requested from the director
of taxation. The director of taxation shall be allowed to assess a reasonable fee for the
issuance of such report. Information received by any city or county pursuant to this section
shall be kept confidential, and it shall be unlawful for any officer or employee of such city
or county to divulge any such information in any manner. Any violation of this paragraph
by a city or county officer or employee is a class B misdemeanor, and such officer or
employee shall be dismissed from office.

(e) All such moneys received by the county treasurer or city treasurer from disbursements
from the county and city transient guest tax fund shall be credited to the tourism and
convention promotion fund of such county or city and shall only be expended for convention
and tourism promotion, except that not more than 20% of the moneys credited to such fund
shall be expended for tourism promotion.

Sec. 5. K.S.A. 1999 Supp. 12-1698 is hereby amended to read as follows: 12-1698. (a)
Any tax levied and collected pursuant to K.S.A. 12-1697, and amendments thereto, shall
become due and payable by the business monthly, on or before the 25th day of the month
immediately succeeding the month in which it is collected, with the first payment due and
payable on or before the 25th day of the month specified in the resolution of the governing
body which levies the tax, but any person filing an annual or quarterly return under the
Kansas retailers' sales tax act, as prescribed in K.S.A. 79-3607, and amendments thereto,
shall, upon such conditions as the secretary of revenue may prescribe, pay the tax required
by this act on the same basis and at the same time such person pays the retailers' sales tax.
Each business shall make a true report to the department of revenue, on a form prescribed
by the secretary of revenue, providing such information as may be necessary to determine
the amounts to which any such tax shall apply for all gross rental receipts for the applicable
month or months, which report shall be accompanied by the tax disclosed thereby. Records
of gross rental receipts shall be kept separate and apart from the records of other retail sales
made by a business in order to facilitate the examination of books and records as provided
herein.

(b) The secretary of revenue or the secretary's authorized representative shall have the
right at all reasonable times during business hours to make such examination and inspection
of the books and records of a business as may be necessary to determine the accuracy of
such reports.

(c) The secretary of revenue is hereby authorized to administer and collect any transient
guest tax levied pursuant to this act and to adopt such rules and regulations as may be
necessary for the efficient and effective administration and enforcement of the collection
thereof. Whenever any business liable to pay any transient guest tax refuses or neglects to
pay the same, the amount, including any penalty, shall be collected in the manner prescribed
for the collection of the retailers' sales tax by K.S.A. 79-3617, and amendments thereto. All
of the taxes collected under the provisions of this act shall be paid into the state treasury
daily by the secretary of revenue, and the state treasurer shall place 2% of all taxes so
collected in the state general fund to defray the expenses of the department in administration
and enforcement of the collection thereof. The remainder of such taxes shall be credited to
the county or city transient guest tax fund, which fund is hereby established. All moneys in
the county or city transient guest tax fund shall be remitted at least quarterly by the state
treasurer to the county or city treasurer of each county or city levying a transient guest tax
under the provisions of this act in the proportion, as certified by the director of taxation,
that the amount collected from such tax in each such county or city bears to the total amount
collected from such taxes in all counties or cities for the period covered by the distribution.

(d) The director of taxation shall provide, upon request by a city or county clerk or
treasurer of any city or county levying a transient guest tax, ~~a monthly report~~ monthly reports
identifying each person doing business in such city or county to which such tax is applicable
~~and~~ setting forth the tax liability and the amount of such tax remitted by such business
during the preceding month, and identifying each business location maintained by the person
within such city or county. Such report shall be made available to the clerk or treasurer of
such city or county within a reasonable time after it has been requested from the director
of taxation. The director of taxation shall be allowed to assess a reasonable fee for the
issuance of such report. Information received by any city or county pursuant to this section
shall be kept confidential, and it shall be unlawful for any officer or employee of such city
or county to divulge any such information in any manner. Any violation of this paragraph
by a city or county officer or employee is a class B misdemeanor, and such officer or
employee shall be dismissed from office.

(e) Except as otherwise provided in K.S.A. 12-1774, and amendments thereto, all such
moneys received by the county or city treasurer from disbursements from the county or city
transient guest tax fund shall be credited to the tourism and convention promotion fund of
such county or city and shall only be expended for convention and tourism promotion.

Sec. 6. K.S.A. 1999 Supp. 12-2536 is hereby amended to read as follows: 12-2536. The
Kansas and Missouri metropolitan culture district compact is hereby enacted into law and
entered into by the state of Kansas with the state of Missouri legally joining therein, in the
form substantially as follows:

Kansas and Missouri Metropolitan Culture District Compact

Article I.--Agreement and Pledge

The states of Kansas and Missouri agree to and pledge, each to the other, faithful coop-
eration in the future planning and development of the metropolitan culture district, holding
in high trust for the benefit of its people and of the nation, the special blessings and natural
advantages thereof.

Article II.--Policy and Purpose

The party states, desiring by common action to fully utilize and improve their cultural
facilities, coordinate the services of their cultural organizations, enhance the cultural activ-
ities of their citizens, and achieve solid financial support for such cultural facilities, organi-
zations and activities, declare that it is the policy of each state to realize such desires on a
basis of cooperation with one another, thereby serving the best interests of their citizenry
and effecting economies in capital expenditures and operational costs. The purpose of this
compact is to provide for the creation of a metropolitan culture district as the means to
implementation of the policy herein declared with the most beneficial and economical use
of human and material resources.

Article III.--Definitions

As used in this compact, unless the context clearly requires otherwise:

(a) ``Metropolitan culture district'' means a political subdivision of the states of Kansas
and Missouri which is created under and pursuant to the provisions of this compact and
which is composed of the counties in the states of Kansas and Missouri which act to create
or to become a part of the district in accordance with the provisions of Article IV.

(b) ``Commission'' means the governing body of the metropolitan culture district.

(c) ``Cultural activities'' means sports or activities which contribute to or enhance the
aesthetic, artistic, historical, intellectual or social development or appreciation of members
of the general public.

(d) ``Cultural organizations'' means nonprofit and tax exempt social, civic or community
organizations and associations which are dedicated to the development, provision, operation,
supervision, promotion or support of cultural activities in which members of the general
public may engage or participate.

(e) ``Cultural facilities'' means facilities operated or used for sports or participation or
engagement in cultural activities by members of the general public.

Article IV.--The District

(a) The counties in Kansas and Missouri eligible to create and initially compose the
metropolitan culture district shall be those counties which meet one or more of the following
criteria: (1) The county has a population in excess of 300,000, and is adjacent to the state
line; (2) the county contains a part of a city with a population according to the most recent
federal census of at least 400,000; or (3) the county is contiguous to any county described
in provisions (1) or (2) of this subpart (a). The counties of Johnson in Kansas and Jackson
in Missouri shall be sine qua non to the creation and initial composition of the district.
Additional counties in Kansas and Missouri shall be eligible to become a part of the met-
ropolitan culture district if such counties are contiguous to any one or more of the counties
which compose the district and within 60 miles of the counties required by this article to
establish the district.

(b) (1) Whenever the governing body of any county which is eligible to create or become
a part of the metropolitan culture district shall determine that creation of or participation
in the district is in the best interests of the citizens of the county and that the levy of a tax
to provide on a cooperative basis with another county or other counties for financial support
of the district would be economically practical and cost beneficial to the citizens of the
county, the governing body may adopt by majority vote a resolution authorizing the same.

(2) Whenever a petition, signed by not less than the number of qualified electors of an
eligible county equal to 5% of the number of ballots cast and counted at the last preceding
gubernatorial election held in the county and requesting adoption of a resolution authorizing
creation of or participation in the metropolitan culture district and the levy of a tax for the
purpose of contributing to the financial support of the district, is filed with the governing
body of the county, the governing body shall adopt such a resolution.

(3) Implementation of a resolution adopted under this subpart (b) shall be conditioned
upon approval of the resolution by a majority of the qualified electors of the county voting
at an election conducted for such purpose.

(c) (1) Upon adoption of a resolution pursuant to subpart (b)(1) or subpart (b)(2), the
governing body of the county shall request, within 36 months after adoption of the resolu-
tion, the county election officer to submit to the qualified electors of the county the question
of whether the governing body shall be authorized to implement the resolution. The reso-
lution shall be printed on the ballot and in the notice of election. The question shall be
submitted to the electors of the county at the primary or general election next following the
date of the request filed with the county election officer. If a majority of the qualified electors
are opposed to implementation of the resolution authorizing creation of or participation in
the district and the levy of a tax for financial support thereof, the same shall not be imple-
mented. The governing body of the county may renew procedures for authorization to create
or become a part of the district and to levy a tax for financial support thereof at any time
following rejection of the question.

(2) The ballot for the proposition in any county shall be substantially the following form:

``Shall a retail sales tax of _____

Yes

;lx

(insert amount, not to exceed 1/4 cent)

be levied and collected in Kansas and Missouri metropolitan cultural district consisting of the county(ies) of __________________________________ for the support(insert name of counties)
of cultural facilities and organizations within the district?''

;lx

The governing body of the county may place additional language on the ballot to describe
the use or allocation of the funds.

(d) (1) The metropolitan culture district shall be created when implementation of a res-
olution authorizing the creation of the district and the levy of a tax for contribution to the
financial support thereof is approved by respective majorities of the qualified electors of at
least Johnson county, Kansas, and Jackson county, Missouri.

(2) When implementation of a resolution authorizing participation in the metropolitan
culture district and the levy of a tax for contribution to the financial support thereof is
approved by a majority of the qualified electors of any county eligible to become a part of
the district, the governing body of the county shall proceed with the performance of all
things necessary and incidental to participation in the district.

(3) Any question for the levy of a tax submitted after July 1, 2000, may be submitted to
the electors of the county at the primary or general election next following the date of the
request filed with the county election officer; at a special election called and held as otherwise
provided by law; at an election called and held on the first Tuesday after the first Monday
in February, except in presidential election years; at an election called and held on the first
Tuesday after the first Monday in March, June, August or November; or at an election called
and held on the first Tuesday in April, except that no question for a tax levy may be submitted
to the electors prior to January 1, 2002.

(4) No question shall be submitted to the electors authorizing the levy of a tax the proceeds
of which will be exclusively dedicated to sports or sports facilities.

(e) Any of the counties composing the metropolitan culture district may withdraw from
the district by adoption of a resolution and approval of the resolution by a majority of the
qualified electors of the county, all in the same manner provided in this Article IV for
creating or becoming a part of the metropolitan culture district. The governing body of a
withdrawing county shall provide for the sending of formal written notice of withdrawal
from the district to the governing body of the other county or each of the other counties
comprising the district. Actual withdrawal shall not take effect until 90 days after notice has
been sent. A withdrawing county shall not be relieved from any obligation which such county
may have assumed or incurred by reason of being a part of the district, including, but not
limited to, the retirement of any outstanding bonded indebtedness of the district.

Article V.--The Commission

(a) The metropolitan culture district shall be governed by the metropolitan culture com-
mission which shall be a body corporate and politic and which shall be composed of resident
electors of the states of Kansas and Missouri, respectively, as follows: (1) A member of the
governing body of each county which is a part of the district, who shall be appointed by
majority vote of such governing body; (2) a member of the governing body of each city, with
a population according to the most recent federal census of at least 50,000, located in whole
or in part within each county which is a part of the district, who shall be appointed by
majority vote of such governing body; ~~and~~ (3) two members of the governing body of a
county with a consolidated or unified county government and city of the first class which is
a part of the district, who shall be appointed by majority vote of such governing body; ~~(3)~~
(4) a member of the arts commission of Kansas or the Kansas commission for the humanities,
who shall be appointed by the governor of Kansas; and (5) a member of the arts commission
of Missouri or the Missouri humanities council, who shall be appointed by the governor of
Missouri. To the extent possible, the gubernatorial appointees to the commission shall be
residents of the district. The term of each commissioner initially appointed by a county
governing body shall expire concurrently with such commissioner's tenure as a county officer
or three years after the date of appointment as a commissioner, whichever occurs sooner.
The term of each commissioner succeeding a commissioner initially appointed by a county
governing body shall expire concurrently with such successor commissioner's tenure as a
county officer or four years after the date of appointment as a commissioner, whichever
occurs sooner. The term of each commissioner initially appointed by a city governing body
shall expire concurrently with such commissioner's tenure as a city officer or two years after
the date of appointment as a commissioner, whichever occurs sooner. The term of each
commissioner succeeding a commissioner initially appointed by a city governing body shall
expire concurrently with such successor commissioner's tenure as a city officer or four years
after the date of appointment as a commissioner, whichever occurs sooner. The term of
each commissioner appointed by the governor of Kansas or the governor of Missouri shall
expire concurrently with the term of the appointing governor, the commissioner's tenure as
a state officer, or four years after the date of appointment as a commissioner of the district,
whichever occurs sooner. Any vacancy occurring in a commissioner position for reasons
other than expiration of terms of office shall be filled for the unexpired term by appointment
in the same manner that the original appointment was made. Any commissioner may be
removed for cause by the appointing authority of the commissioner.

(b) The commission shall select annually, from its membership, a chairperson, a vice-
chairperson, and a treasurer. The treasurer shall be bonded in such amounts as the com-
mission may require.

(c) The commission may appoint such officers, agents and employees as it may require
for the performance of its duties, and shall determine the qualifications and duties and fix
the compensation of such officers, agents and employees.

(d) The commission shall fix the time and place at which its meetings shall be held.
Meetings shall be held within the district and shall be open to the public. Public notice shall
be given of all meetings.

(e) A majority of the commissioners from each state shall constitute, in the aggregate, a
quorum for the transaction of business. No action of the commission shall be binding unless
taken at a meeting at which at least a quorum is present, and unless a majority of the
commissioners from each state, present at such meeting, shall vote in favor thereof. No
action of the commission taken at a meeting thereof shall be binding unless the subject of
such action is included in a written agenda for such meeting, the agenda and notice of
meeting having been mailed to each commissioner by postage paid first-class mail at least
14 calendar days prior to the meeting.

(f) The commissioners from each state shall be subject to the provisions of the laws of
the states of Kansas and Missouri, respectively, which relate to conflicts of interest of public
officers and employees. If any commissioner has a direct or indirect financial interest in any
cultural facility, organization or activity supported by the district or commission or in any
other business transaction of the district or commission, the commissioner shall disclose
such interest in writing to the other commissioners and shall abstain from voting on any
matter relating to such facility, organization or activity or to such business transaction.

(g) If any action at law or equity, or other legal proceeding, shall be brought against any
commissioner for any act or omission arising out of the performance of duties as a com-
missioner, the commissioner shall be indemnified in whole and held harmless by the com-
mission for any judgment or decree entered against the commissioner and, further, shall be
defended at the cost and expense of the commission in any such proceeding.

Article VI.--Powers and Duties of the Commission

(a) The commission shall adopt a seal and suitable bylaws governing its management and
procedure.

(b) The commission has the power to contract and to be contracted with, and to sue and
to be sued.

(c) The commission may receive for any of its purposes and functions any contributions
or moneys appropriated by counties or cities and may solicit and receive any and all dona-
tions, and grants of money, equipment, supplies, materials and services from any state or
the United States or any agency thereof, or from any institution, foundation, organization,
person, firm or corporation, and may utilize and dispose of the same.

(d) Upon receipt of recommendations from the advisory committee provided in subsec-
tion (g), the commission may provide donations, contributions and grants or other support,
financial or otherwise, for or in aid of cultural organizations, facilities or activities in counties
which are part of the district. In determining whether to provide any such support the
commission shall consider the following factors:

(1) Economic impact upon the district;

(2) cultural benefit to citizens of the district and to the general public;

(3) contribution to the quality of life and popular image of the district;

(4) contribution to the geographical balance of cultural facilities and activities within and
outside the district;

(5) the breadth of popular appeal within and outside the district;

(6) the needs of the community as identified in an objective cultural needs assessment
study of the metropolitan area; and

(7) any other factor deemed appropriate by the commission.

(e) The commission may own and acquire by gift, purchase, lease or devise cultural
facilities within the territory of the district. The commission may plan, construct, operate
and maintain and contract for the operation and maintenance of cultural facilities within
the territory of the district. The commission may sell, lease or otherwise dispose of cultural
facilities within the territory of the district.

(f) At any time following five years from and after the creation of the metropolitan cultural
district as provided in paragraph (1) of subsection (d) of article IV, the commission, may
borrow moneys for the planning, construction, equipping, operation, maintenance, repair,
extension, expansion, or improvement of any cultural facility and, in that regard, the com-
mission at such time may:

(1) Issue notes, bonds or other instruments in writing of the commission in evidence of
the sum or sums to be borrowed. No notes, bonds or other instruments in writing shall be
issued pursuant to this subsection until the issuance of such notes, bonds or instruments
has been submitted to and approved by a majority of the qualified electors of the district
voting at an election called and held thereon. Such election shall be called and held in the
manner provided by the general bond law;

(2) issue refunding notes, bonds or other instruments in writing for the purpose of re-
funding, extending or unifying the whole or any part of its outstanding indebtedness from
time to time, whether evidenced by notes, bonds or other instruments in writing. Such
refunding notes, bonds or other instruments in writing shall not exceed in amount the
principal of the outstanding indebtedness to be refunded and the accrued interest thereon
to the date of such refunding;

(3) provide that all notes, bonds and other instruments in writing issued hereunder shall
or may be payable, both as to principal and interest, from sales tax revenues authorized
under this compact and disbursed to the district by counties comprising the district, admis-
sions and other revenues collected from the use of any cultural facility or facilities con-
structed hereunder, or from any other resources of the commission, and further may be
secured by a mortgage or deed of trust upon any property interest of the commission; and

(4) prescribe the details of all notes, bonds or other instruments in writing, and of the
issuance and sale thereof. The commission shall have the power to enter into covenants with
the holders of such notes, bonds or other instruments in writing, not inconsistent with the
powers granted herein, without further legislative authority.

(g) The commission shall appoint an advisory committee composed of members of the
general public consisting of an equal number of persons from both the states of Kansas and
Missouri who have demonstrated interest, expertise, knowledge or experience in cultural
organizations or activities. The advisory committee shall make recommendations annually
to the commission regarding donations, contributions and grants or other support, financial
or otherwise, for or in aid of cultural organizations, facilities and activities in counties which
are part of the district.

(h) The commission may provide for actual and necessary expenses of commissioners
and advisory committee members incurred in the performance of their official duties.

(i) The commission shall cause to be prepared annually a report on the operations and
transactions conducted by the commission during the preceding year. The report shall be
submitted to the legislatures and governors of the compacting states, to the governing bodies
of the counties comprising the district, and to the governing body of each city that appoints
a commissioner. The commission shall publish the annual report in the official county news-
paper of each of the counties comprising the district.

(j) The commission has the power to apply to the congress of the United States for its
consent and approval of the compact. In the absence of the consent of congress and until
consent is secured, the compact is binding upon the states of Kansas and Missouri in all
respects permitted by law for the two states, without the consent of congress, for the pur-
poses enumerated and in the manner provided in the compact.

(k) The commission has the power to perform all other necessary and incidental functions
and duties and to exercise all other necessary and appropriate powers not inconsistent with
the constitution or laws of the United States or of either of the states of Kansas or Missouri
to effectuate the same.

Article VII.--[ntFinance

(a) The moneys necessary to finance the operation of the metropolitan culture district
and the execution of the powers, duties and responsibilities of the commission shall be
appropriated to the commission by the counties comprising the district. The moneys to be
appropriated to the commission shall be raised by the governing bodies of the respective
counties by the levy of taxes as authorized by the legislatures of the respective party states.

(b) The commission shall not incur any indebtedness or obligation of any kind; nor shall
the commission pledge the credit of either or any of the counties comprising the district or
either of the states party to this compact, except as authorized by article VI. The budget of
the district shall be prepared, adopted and published as provided by law for other political
subdivisions of the party states. No budget shall be adopted by the commission until it has
been submitted to and reviewed by the governing bodies of the counties comprising the
district and the governing body of each city represented on the commission.

(c) The commission shall keep accurate accounts of all receipts and disbursements. The
receipts and disbursements of the commission shall be audited yearly by a certified or
licensed public accountant and the report of the audit shall be included in and become part
of the annual report of the commission.

(d) The accounts of the commission shall be open at any reasonable time for inspection
by duly authorized representatives of the compacting states, the counties comprising the
district, the cities that appoint a commissioner, and other persons authorized by the
commission.

Article VIII.--Entry into Force

(a) This compact shall enter into force and become effective and binding upon the states
of Kansas and Missouri when it has been enacted into law by the legislatures of the respective
states.

(b) Amendments to the compact shall become effective upon enactment by the legisla-
tures of the respective states.

Article IX.--Termination

This compact shall continue in force and remain binding upon a party state until its
legislature shall have enacted a statute repealing the same and providing for the sending of
formal written notice of enactment of such statute to the legislature of the other party state.
Upon enactment of such a statute by the legislature of either party state, the sending of
notice thereof to the other party state, and payment of any obligations which the metro-
politan culture district commission may have incurred prior to the effective date of such
statute, including, but not limited to, the retirement of any outstanding bonded indebtedness
of the district, the agreement of the party states embodied in the compact shall be deemed
fully executed, the compact shall be null and void and of no further force or effect, the
metropolitan culture district shall be dissolved, and the metropolitan culture district com-
mission shall be abolished.

Article X.--Construction and Severability

The provisions of this compact shall be liberally construed and shall be severable. If any
phrase, clause, sentence or provision of this compact is declared to be contrary to the
constitution of either of the party states or of the United States or the applicability thereof
to any government, agency, person or circumstance is held invalid, the validity of the re-
mainder of this compact and the applicability thereof to any government, agency, person or
circumstance shall not be affected thereby. If this compact shall be held contrary to the
constitution of either of the states party thereto, the compact shall thereby be nullified and
voided and of no further force or effect.

Sec. 7. K.S.A. 1999 Supp. 75-5133 is hereby amended to read as follows: 75-5133. (a)
Except as otherwise more specifically provided by law, all information received by the di-
rector of taxation from applications for licensure or registration made or returns or reports
filed under the provisions of any law imposing any excise tax administered by the director,
or from any investigation conducted under such provisions, shall be confidential, and it shall
be unlawful for any officer or employee of the department of revenue to divulge any such
information except in accordance with other provisions of law respecting the enforcement
and collection of such tax, in accordance with proper judicial order and as provided in K.S.A.
74-2424, and amendments thereto.

(b) Nothing in this section shall be construed to prohibit the publication of statistics, so
classified as to prevent identification of particular reports or returns and the items thereof,
or the inspection of returns by the attorney general. Nothing in this section shall prohibit
the post auditor from access to all such excise tax reports or returns in accordance with and
subject to the provisions of subsection (g) of K.S.A. 46-1106, and amendments thereto.
Nothing in this section shall be construed to prohibit the disclosure of taxpayer information
from excise tax returns to persons or entities contracting with the secretary of revenue where
the secretary has determined disclosure of such information is essential for completion of
the contract and has taken appropriate steps to preserve confidentiality.

(c) Notwithstanding the foregoing provisions of this section, the director of taxation may
provide: (1) Such information from returns and reports filed under article 42 of chapter 79
of the Kansas Statutes Annotated to county appraisers as is necessary to insure proper
valuations of property. Information from such returns and reports may also be exchanged
with any other state agency administering and collecting conservation or other taxes and
fees imposed on or measured by mineral production; and (2) such information from returns
and applications for registration filed pursuant to K.S.A. 12-187, and amendments thereto,
and K.S.A. 79-3601, and amendments thereto, to a city or county treasurer or clerk to explain
the basis of statistics contained in reports required by K.S.A. 12-189, and amendments
thereto, 12-1694, and amendments thereto, and 12-1698, and amendments thereto.

(d) Nothing in this section shall prohibit the disclosure of the following oil and gas pro-
duction statistics received by the department of revenue in accordance with K.S.A. 79-4216
et seq. and amendments thereto: Volumes of production by well name, well number, op-
erator's name and identification number assigned by the state corporation commission, lease
name, leasehold property description, county of production or zone of production, name of
purchaser and purchaser's tax identification number assigned by the department of revenue,
name of transporter, field code number or lease code, tax period, exempt production vol-
umes by well name or lease, or any combination of this information.

~~(d)~~ (e) Any person receiving any information under the provisions of subsection (b) or,
(c) or (d) shall be subject to the confidentiality provisions of subsection (a) and to the penalty
provisions of subsection ~~(e)~~ (f).

~~(e)~~ (f) Any violation of this section shall be a class B nonperson misdemeanor, and if the
offender is an officer or employee of this state, such officer or employee shall be dismissed
from office.

Sec. 8. K.S.A. 1999 Supp. 79-3602 is hereby amended to read as follows: 79-3602. (a)
``Persons'' means any individual, firm, copartnership, joint adventure, association, corpora-
tion, 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 specifically 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) 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 consumed, depleted or
dissipated within one year in (1) the production, manufacture, processing, mining, drilling,
refining or compounding of tangible personal property, (2) the providing of services, (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 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, bi-
ologicals, 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;

(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 of-
fers 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.

Sec. 9. K.S.A. 1999 Supp. 79-3603 is hereby amended to read as follows: 79-3603. For
the privilege of engaging in the business of selling tangible personal property at retail in this
state or rendering or furnishing any of the services taxable under this act, there is hereby
levied and there shall be collected and paid a tax at the rate of 4.9% and, within a redevel-
opment district established pursuant to K.S.A. 74-8921, and amendments thereto, there is
hereby levied and there shall be collected and paid an additional tax at the rate of 2% until
the earlier of the date the bonds issued to finance or refinance the redevelopment project
have been paid in full or the final scheduled maturity of the first series of bonds issued to
finance any part of the project upon:

(a) The gross receipts received from the sale of tangible personal property at retail within
this state;

(b) (1) the gross receipts from intrastate telephone or telegraph services and (2) the gross
receipts received from the sale of interstate telephone or telegraph services, which (A)
originate within this state and terminate outside the state and are billed to a customer's
telephone number or account in this state; or (B) originate outside this state and terminate
within this state and are billed to a customer's telephone number or account in this state
except that the sale of interstate telephone or telegraph service does not include: (A) Any
interstate incoming or outgoing wide area telephone service or wide area transmission type
service which entitles the subscriber to make or receive an unlimited number of commu-
nications to or from persons having telephone service in a specified area which is outside
the state in which the station provided this service is located; (B) any interstate private
communications service to the persons contracting for the receipt of that service that entitles
the purchaser to exclusive or priority use of a communications channel or group of channels
between exchanges; (C) any value-added nonvoice service in which computer processing
applications are used to act on the form, content, code or protocol of the information to be
transmitted; (D) any telecommunication service to a provider of telecommunication services
which will be used to render telecommunications services, including carrier access services;
or (E) any service or transaction defined in this section among entities classified as members
of an affiliated group as provided by federal law (U.S.C. Section 1504). For the purposes
of this subsection the term gross receipts does not include purchases of telephone, telegraph
or telecommunications using a prepaid telephone calling card or pre-paid authorization
number. As used in this subsection, a pre-paid telephone calling card or pre-paid authori-
zation number means the right to exclusively make telephone calls, paid for in advance, with
the prepaid value measured in minutes or other time units, that enables the origination of
calls using an access number or authorization code or both, whether manually or electron-
ically dialed;

(c) the gross receipts from the sale or furnishing of gas, water, electricity and heat, which
sale is not otherwise exempt from taxation under the provisions of this act, and whether
furnished by municipally or privately owned utilities;

(d) the gross receipts from the sale of meals or drinks furnished at any private club,
drinking establishment, catered event, restaurant, eating house, dining car, hotel, drugstore
or other place where meals or drinks are regularly sold to the public;

(e) the gross receipts from the sale of admissions to any place providing amusement,
entertainment or recreation services including admissions to state, county, district and local
fairs, but such tax shall not be levied and collected upon the gross receipts received from
sales of admissions to any cultural and historical event which occurs triennially;

(f) the gross receipts from the operation of any coin-operated device dispensing or pro-
viding tangible personal property, amusement or other services except laundry services,
whether automatic or manually operated;

(g) the gross receipts from the service of renting of rooms by hotels, as defined by K.S.A.
36-501 and amendments thereto, or by accommodation brokers, as defined by K.S.A. 12-
1692, and amendments thereto;

(h) the gross receipts from the service of renting or leasing of tangible personal property
except such tax shall not apply to the renting or leasing of machinery, equipment or other
personal property owned by a city and purchased from the proceeds of industrial revenue
bonds issued prior to July 1, 1973, in accordance with the provisions of K.S.A. 12-1740
through 12-1749, and amendments thereto, and any city or lessee renting or leasing such
machinery, equipment or other personal property purchased with the proceeds of such
bonds who shall have paid a tax under the provisions of this section upon sales made prior
to July 1, 1973, shall be entitled to a refund from the sales tax refund fund of all taxes paid
thereon;

(i) the gross receipts from the rendering of dry cleaning, pressing, dyeing and laundry
services except laundry services rendered through a coin-operated device whether automatic
or manually operated;

(j) the gross receipts from the rendering of the services of washing and washing and
waxing of vehicles;

(k) the gross receipts from cable, community antennae and other subscriber radio and
television services;

(l) (1) except as otherwise provided by paragraph (2), the gross receipts received from
the sales of tangible personal property to all contractors, subcontractors or repairmen of
~~materials and supplies~~ for use by them in erecting structures ~~for others,~~ or building on, or
otherwise improving, altering, or repairing real or personal property ~~of others;~~.

(2) Any such contractor, subcontractor or repairman who maintains an inventory of such
property both for sale at retail and for use by them for the purposes described by paragraph
(1) shall be deemed a retailer with respect to purchases for and sales from such inventory,
except that the gross receipts received from any such sale, other than a sale at retail, shall
be equal to the total purchase price paid for such property and the tax imposed thereon
shall be paid by the deemed retailer;

(m) the gross receipts received from fees and charges by public and private clubs, drink-
ing establishments, organizations and businesses for participation in sports, games and other
recreational activities, but such tax shall not be levied and collected upon the gross receipts
received from: (1) Fees and charges by any political subdivision, by any organization exempt
from property taxation pursuant to paragraph Ninth of K.S.A. 79-201, and amendments
thereto, or by any youth recreation organization exclusively providing services to persons 18
years of age or younger which is exempt from federal income taxation pursuant to section
501(c)(3) of the federal internal revenue code of 1986, for participation in sports, games
and other recreational activities; and (2) entry fees and charges for participation in a special
event or tournament sanctioned by a national sporting association to which spectators are
charged an admission which is taxable pursuant to subsection (e);

(n) the gross receipts received from dues charged by public and private clubs, drinking
establishments, organizations and businesses, payment of which entitles a member to the
use of facilities for recreation or entertainment, but such tax shall not be levied and collected
upon the gross receipts received from: (1) Dues charged by any organization exempt from
property taxation pursuant to paragraphs Eighth and Ninth of K.S.A. 79-201, and amend-
ments thereto; and (2) sales of memberships in a nonprofit organization which is exempt
from federal income taxation pursuant to section 501 (c)(3) of the federal internal revenue
code of 1986, and whose purpose is to support the operation of a nonprofit zoo;

(o) the gross receipts received from the isolated or occasional sale of motor vehicles or
trailers but not including: (1) The transfer of motor vehicles or trailers by a person to a
corporation solely in exchange for stock securities in such corporation; or (2) the transfer
of motor vehicles or trailers by one corporation to another when all of the assets of such
corporation are transferred to such other corporation; or (3) the sale of motor vehicles or
trailers which are subject to taxation pursuant to the provisions of K.S.A. 79-5101 et seq.,
and amendments thereto, by an immediate family member to another immediate family
member. For the purposes of clause (3), immediate family member means lineal ascendants
or descendants, and their spouses. In determining the base for computing the tax on such
isolated or occasional sale, the fair market value of any motor vehicle or trailer traded in by
the purchaser to the seller may be deducted from the selling price;

(p) the gross receipts received for the service of installing or applying tangible personal
property which when installed or applied is not being held for sale in the regular course of
business, and whether or not such tangible personal property when installed or applied
remains tangible personal property or becomes a part of real estate, except that no tax shall
be imposed upon the service of installing or applying tangible personal property in connec-
tion with the original construction of a building or facility, the original construction, recon-
struction, restoration, remodeling, renovation, repair or replacement of a residence or the
construction, reconstruction, restoration, replacement or repair of a bridge or highway.

For the purposes of this subsection:

(1) ``Original construction'' shall mean the first or initial construction of a new building
or facility. The term ``original construction'' shall include the addition of an entire room or
floor to any existing building or facility, the completion of any unfinished portion of any
existing building or facility and the restoration, reconstruction or replacement of a building
or facility damaged or destroyed by fire, flood, tornado, lightning, explosion or earthquake,
but such term, except with regard to a residence, shall not include replacement, remodeling,
restoration, renovation or reconstruction under any other circumstances;

(2) ``building'' shall mean only those enclosures within which individuals customarily are
employed, or which are customarily used to house machinery, equipment or other property,
and including the land improvements immediately surrounding such building;

(3) ``facility'' shall mean a mill, plant, refinery, oil or gas well, water well, feedlot or any
conveyance, transmission or distribution line of any cooperative, nonprofit, membership
corporation organized under or subject to the provisions of K.S.A. 17-4601 et seq., and
amendments thereto, or of any municipal or quasi-municipal corporation, including the land
improvements immediately surrounding such facility; and

(4) ``residence'' shall mean only those enclosures within which individuals customarily
live;

(q) the gross receipts received for the service of repairing, servicing, altering or main-
taining tangible personal property, except computer software described in subsection (s),
which when such services are rendered is not being held for sale in the regular course of
business, and whether or not any tangible personal property is transferred in connection
therewith. The tax imposed by this subsection shall be applicable to the services of repairing,
servicing, altering or maintaining an item of tangible personal property which has been and
is fastened to, connected with or built into real property;

(r) the gross receipts from fees or charges made under service or maintenance agreement
contracts for services, charges for the providing of which are taxable under the provisions
of subsection (p) or (q);

(s) the gross receipts received from the sale of computer software, and the sale of the
services of modifying, altering, updating or maintaining computer software. As used in this
subsection, ``computer software'' means information and directions loaded into a computer
which dictate different functions to be performed by the computer. Computer software
includes any canned or prewritten program which is held or existing for general or repeated
sale, even if the program was originally developed for a single end user as custom computer
software. The sale of computer software or services does not include: (1) The initial sale of
any custom computer program which is originally developed for the exclusive use of a single
end user; or (2) those services rendered in the modification of computer software when the
modification is developed exclusively for a single end user only to the extent of the modi-
fication and only to the extent that the actual amount charged for the modification is sep-
arately stated on invoices, statements and other billing documents provided to the end user.
The services of modification, alteration, updating and maintenance of computer software
shall only include the modification, alteration, updating and maintenance of computer soft-
ware taxable under this subsection whether or not the services are actually provided; and

(t) the gross receipts received for telephone answering services, including mobile phone
services, beeper services and other similar services; and

(u) the gross receipts received from the sale of prepaid telephone calling cards or pre-
paid authorization numbers and the recharge of such cards or numbers. A pre-paid tele-
phone calling card or pre-paid authorization number means the right to exclusively make
telephone calls, paid for in advance, with the prepaid value measured in minutes or other
time units, that enables the origination of calls using an access number or authorization
code or both, whether manually or electronically dialed. If the sale or recharge of such card
or number does not take place at the vendor's place of business, it shall be conclusively
determined to take place at the customer's shipping address; if there is no item shipped
then it shall be the customer's billing address.

Sec. 10. K.S.A. 1999 Supp. 79-3606, as amended by section 1 of 2000 House Bill No.
2011, 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. 1999 Supp. 65-3424d, and amendments
thereto, and drycleaning and laundry services taxed pursuant to K.S.A. 1999 Supp. 65-
34,150, and amendments thereto;

(b) all sales of tangible personal property or service, including the renting and leasing of
tangible personal property, purchased directly by the state of Kansas, a political subdivision
thereof, other than a school or educational institution, or purchased by a public or private
nonprofit hospital or public hospital authority or nonprofit blood, tissue or organ bank and
used exclusively for state, political subdivision, hospital or public hospital authority or non-
profit 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 re-
pair, modification and replacement parts and sales of services employed in the remanufac-
ture, modification and repair of aircraft sold to persons using directly or through an au-
thorized 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, manu-
facture, processing, mining, drilling, refining or compounding of tangible personal property,
the treating of by-products or wastes derived from any such production process, the pro-
viding 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, maintaining,
manufacturing, remanufacturing, or modification of railroad rolling stock for use in interstate
or foreign commerce under authority of the laws of the United States;

(z) all sales of tangible personal property and services purchased directly by a port au-
thority 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) (1) (A) all sales of machinery and equipment which are used in this state as an
integral or essential part of an integrated production operation by a manufacturing or proc-
essing plant or facility;

(B) all sales of installation, repair and maintenance services performed on such machinery
and equipment; and

(C) all sales of repair and replacement parts and accessories purchased for such machin-
ery and equipment.

(2) For purposes of this subsection:

(A) ``Integrated production operation'' means an integrated series of operations engaged
in at a manufacturing or processing plant or facility to process, transform or convert tangible
personal property by physical, chemical or other means into a different form, composition
or character from that in which it originally existed. Integrated production operations shall
include: (i) Production line operations, including packaging operations; (ii) preproduction
operations to handle, store and treat raw materials; (iii) post production handling, storage,
warehousing and distribution operations; and (iv) waste, pollution and environmental control
operations, if any;

(B) ``production line'' means the assemblage of machinery and equipment at a manufac-
turing or processing plant or facility where the actual transformation or processing of tan-
gible personal property occurs;

(C) ``manufacturing or processing plant or facility'' means a single, fixed location owned
or controlled by a manufacturing or processing business that consists of one or more struc-
tures or buildings in a contiguous area where integrated production operations are con-
ducted to manufacture or process tangible personal property to be ultimately sold at retail.
Such term shall not include any facility primarily operated for the purpose of conveying or
assisting in the conveyance of natural gas, electricity, oil or water. A business may operate
one or more manufacturing or processing plants or facilities at different locations to man-
ufacture or process a single product of tangible personal property to be ultimately sold at
retail;

(D) ``manufacturing or processing business'' means a business that utilizes an integrated
production operation to manufacture, process, fabricate, finish, or assemble items for whole-
sale and retail distribution as part of what is commonly regarded by the general public as
an industrial manufacturing or processing operation or an agricultural commodity processing
operation. (i) Industrial manufacturing or processing operations include, by way of illustra-
tion but not of limitation, the fabrication of automobiles, airplanes, machinery or transpor-
tation equipment, the fabrication of metal, plastic, wood, or paper products, electricity
power generation, water treatment, petroleum refining, chemical production, wholesale bot-
tling, newspaper printing, ready mixed concrete production, and the remanufacturing of
used parts for wholesale or retail sale. Such processing operations shall include operations
at an oil well, gas well, mine or other excavation site where the oil, gas, minerals, coal, clay,
stone, sand or gravel that has been extracted from the earth is cleaned, separated, crushed,
ground, milled, screened, washed, or otherwise treated or prepared before its transmission
to a refinery or before any other wholesale or retail distribution. (ii) Agricultural commodity
processing operations include, by way of illustration but not of limitation, meat packing,
poultry slaughtering and dressing, processing and packaging farm and dairy products in
sealed containers for wholesale and retail distribution, feed grinding, grain milling, frozen
food processing, and grain handling, cleaning, blending, fumigation, drying and aeration
operations engaged in by grain elevators or other grain storage facilities. (iii) Manufacturing
or processing businesses do not include, by way of illustration but not of limitation, nonin-
dustrial businesses whose operations are primarily retail and that produce or process tangible
personal property as an incidental part of conducting the retail business, such as retailers
who bake, cook or prepare food products in the regular course of their retail trade, grocery
stores, meat lockers and meat markets that butcher or dress livestock or poultry in the
regular course of their retail trade, contractors who alter, service, repair or improve real
property, and retail businesses that clean, service or refurbish and repair tangible personal
property for its owner;

(E) ``repair and replacement parts and accessories'' means all parts and accessories for
exempt machinery and equipment, including, but not limited to, dies, jigs, molds, patterns
and safety devices that are attached to exempt machinery or that are otherwise used in
production, and parts and accessories that require periodic replacement such as belts, drill
bits, grinding wheels, grinding balls, cutting bars, saws, refractory brick and other refractory
items for exempt kiln equipment used in production operations;

(F) ``primary'' or ``primarily'' mean more than 50% of the time.

(3) For purposes of this subsection, machinery and equipment shall be deemed to be
used as an integral or essential part of an integrated production operation when used:

(A) To receive, transport, convey, handle, treat or store raw materials in preparation of
its placement on the production line;

(B) to transport, convey, handle or store the property undergoing manufacturing or proc-
essing at any point from the beginning of the production line through any warehousing or
distribution operation of the final product that occurs at the plant or facility;

(C) to act upon, effect, promote or otherwise facilitate a physical change to the property
undergoing manufacturing or processing;

(D) to guide, control or direct the movement of property undergoing manufacturing or
processing;

(E) to test or measure raw materials, the property undergoing manufacturing or proc-
essing or the finished product, as a necessary part of the manufacturer's integrated produc-
tion operations;

(F) to plan, manage, control or record the receipt and flow of inventories of raw materials,
consumables and component parts, the flow of the property undergoing manufacturing or
processing and the management of inventories of the finished product;

(G) to produce energy for, lubricate, control the operating of or otherwise enable the
functioning of other production machinery and equipment and the continuation of produc-
tion operations;

(H) to package the property being manufactured or processed in a container or wrapping
in which such property is normally sold or transported;

(I) to transmit or transport electricity, coke, gas, water, steam or similar substances used
in production operations from the point of generation, if produced by the manufacturer or
processor at the plant site, to that manufacturer's production operation; or, if purchased or
delivered from offsite, from the point where the substance enters the site of the plant or
facility to that manufacturer's production operations;

(J) to cool, heat, filter, refine or otherwise treat water, steam, acid, oil, solvents or other
substances that are used in production operations;

(K) to provide and control an environment required to maintain certain levels of air
quality, humidity or temperature in special and limited areas of the plant or facility, where
such regulation of temperature or humidity is part of and essential to the production process;

(L) to treat, transport or store waste or other byproducts of production operations at the
plant or facility; or

(M) to control pollution at the plant or facility where the pollution is produced by the
manufacturing or processing operation.

(4) The following machinery, equipment and materials shall be deemed to be exempt
even though it may not otherwise qualify as machinery and equipment used as an integral
or essential part of an integrated production operation: (A) Computers and related periph-
eral equipment that are utilized by a manufacturing or processing business for engineering
of the finished product or for research and development or product design; (B) machinery
and equipment that is utilized by a manufacturing or processing business to manufacture
or rebuild tangible personal property that is used in manufacturing or processing operations,
including tools, dies, molds, forms and other parts of qualifying machinery and equipment;
(C) portable plants for aggregate concrete, bulk cement and asphalt including cement mixing
drums to be attached to a motor vehicle; (D) industrial fixtures, devices, support facilities
and special foundations necessary for manufacturing and production operations, and ma-
terials and other tangible personal property sold for the purpose of fabricating such fixtures,
devices, facilities and foundations. An exemption certificate for such purchases shall be
signed by the manufacturer or processor. If the fabricator purchases such material, the
fabricator shall also sign the exemption certificate; and (E) a manufacturing or processing
business' laboratory equipment that is not located at the plant or facility, but that would
otherwise qualify for exemption under subsection (3)(E).

(5) ``Machinery and equipment used as an integral or essential part of an integrated
production operation'' shall not include:

(A) Machinery and equipment used for nonproduction purposes, including, but not lim-
ited to, machinery and equipment used for plant security, fire prevention, first aid, account-
ing, administration, record keeping, advertising, marketing, sales or other related activities,
plant cleaning, plant communications, and employee work scheduling;

(B) machinery, equipment and tools used primarily in maintaining and repairing any type
of machinery and equipment or the building and plant;

(C) transportation, transmission and distribution equipment not primarily used in a pro-
duction, warehousing or material handling operation at the plant or facility, including the
means of conveyance of natural gas, electricity, oil or water, and equipment related thereto,
located outside the plant or facility;

(D) office machines and equipment including computers and related peripheral equip-
ment not used directly and primarily to control or measure the manufacturing process;

(E) furniture and other furnishings;

(F) buildings, other than exempt machinery and equipment that is permanently affixed
to or becomes a physical part of the building, and any other part of real estate that is not
otherwise exempt;

(G) building fixtures that are not integral to the manufacturing operation, such as utility
systems for heating, ventilation, air conditioning, communications, plumbing or electrical;

(H) machinery and equipment used for general plant heating, cooling and lighting;

(I) motor vehicles that are registered for operation on public highways; or

(J) employee apparel, except safety and protective apparel that is purchased by an em-
ployer and furnished gratuitously to employees who are involved in production or research
activities.

(6) Subsections (3) and (5) shall not be construed as exclusive listings of the machinery
and equipment that qualify or do not qualify as an integral or essential part of an integrated
production operation. When machinery or equipment is used as an integral or essential part
of production operations part of the time and for nonproduction purpose at other times,
the primary use of the machinery or equipment shall determine whether or not such ma-
chinery or equipment qualifies for exemption.

(7) The secretary of revenue shall adopt rules and regulations necessary to administer
the provisions of this subsection;

(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, germicides,
pesticides and fungicides; and services, purchased and used for the purpose of producing
plants in order to prevent soil erosion on land devoted to agricultural use;

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

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

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

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

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

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

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

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

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

(1) The American Heart Association, Kansas Affiliate, Inc. for the purposes of providing
education, training, certification in emergency cardiac care, research and other related 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 persons
who are mentally ill and to education, research and support for them and their families;

(4) the American Diabetes Association Kansas Affiliate, Inc. for the purpose of 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; and

(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;

(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 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 broad-
cast 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 com-
munications 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 organ-
ization 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 remod-
eling 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 subsec-
tion shall be deemed to exempt the purchase of any construction machinery, equipment or
tools used in the constructing, equipping, reconstructing, maintaining, repairing, enlarging,
furnishing or remodeling facilities for any such organization. When any such organization
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 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 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. 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;

(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 pur-
chased 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 re-
modeling 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, equip-
ment or tools used in the constructing, equipping, reconstructing, maintaining, 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 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;

(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 trans-
portation 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;

(eee) on and after January 1, 1999, and before January 1, ~~2000~~ 2001, 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; ~~and~~

(fff) all sales of material handling equipment, racking systems and other related machin-
ery and equipment that is used for the handling, movement or storage of tangible personal
property in a warehouse or distribution facility in this state; all sales of installation, repair
and maintenance services performed on such machinery and equipment; and all sales of
repair and replacement parts for such machinery and equipment. For purposes of this
subsection, a warehouse or distribution facility means a single, fixed location that consists
of buildings or structures in a contiguous area where storage or distribution operations are
conducted that are separate and apart from the business' retail operations, if any, and which
do not otherwise qualify for exemption as occurring at a manufacturing or processing plant
or facility. Material handling and storage equipment shall include aeration, dust control,
cleaning, handling and other such equipment that is used in a public grain warehouse or
other commercial grain storage facility, whether used for grain handling, grain storage, grain
refining or processing, or other grain treatment operation; and

(ggg) all sales of tangible personal property and services purchased by or on behalf of the
Kansas Academy of Science which is exempt from federal income taxation pursuant to section
501(c)(3) of the federal internal revenue code of 1986, and used solely by such academy for
the preparation, publication and dissemination of education materials.

Sec. 11. K.S.A. 1999 Supp. 79-3633 is hereby amended to read as follows: 79-3633. As
used in K.S.A. 79-3620 and 79-3632 to 79-3639 and amendments thereto, unless the context
clearly indicates otherwise:

(a) ``Income'' means adjusted gross income determined under the Kansas income tax act
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.

(b) ``Household'' means a claimant and all other persons for whom a personal exemption
is claimed who together occupy a common residence.

(c) ``Claimant'' means a person who has filed a claim for a refund or credit under the
provisions of this act and was, during the entire calendar year preceding the year in which
the claim was filed for relief under this act, domiciled in this state, was a member of a
household, had income of not more than $25,000 in the calendar year for which a claim is
filed and was: (1) A person having a disability; (2) a person other than a person included
under (1), who has attained 55 years of age in the calendar year for which a claim is filed
or (3) a person other than a person included under (1) or (2) having one or more dependent
children under 18 years of age residing at the person's homestead during the calendar year
for which a claim is filed.

(d) ``Head of household'' means the person filing a claim under the provisions of this act.

(e) ``Disability'' means (1) inability to engage in any substantial gainful activity by reason
of any medically determinable physical or mental impairment which can be expected to
result in death or has lasted or can be expected to last for a continuous period of not less
than 12 months, and an individual shall be determined to be under a disability only if the
physical or mental impairment or impairments are of such severity that the individual is not
only unable to do the individual's previous work but cannot, considering age, education and
work experience, engage in any other kind of substantial gainful work which exists in the
national economy, regardless of whether such work exists in the immediate area in which
the individual lives or whether a specific job vacancy exists for the individual, or whether
the individual would be hired if application was made for work. For purposes of the pre-
ceding sentence (with respect to any individual), ``work which exists in the national economy''
means work which exists in significant numbers either in the region where the individual
lives or in several regions of the country; for purposes of this subsection, a ``physical or
mental impairment'' is an impairment that results from anatomical, physiological or psy-
chological abnormalities which are demonstrable by medically acceptable clinical and lab-
oratory diagnostic techniques; or

(2) blindness and inability by reason of blindness to engage in substantial gainful activity
requiring skills or abilities comparable to those of any gainful activity in which the individual
has previously engaged with some regularity and over a substantial period of time.

(f) ``Blindness'' means central visual acuity of 20/200 or less in the better eye with the
use of a correcting lens. An eye which is accompanied by a limitation in the fields of vision
such that the widest diameter of the visual field subtends an angle no greater than 20 degrees
shall be considered for the purpose of this paragraph as having a central visual acuity of 20/
200 or less.

Sec. 12. K.S.A. 1999 Supp. 79-3635 is hereby amended to read as follows: 79-3635. (a)
(1) A claimant shall be entitled to a refund of retailers' sales taxes paid upon food during
the calendar year 1998 and each year thereafter in the amount hereinafter provided. There
shall be allowed for each member of a household of a claimant having income of $12,500
or less, an amount equal to $60. There shall be allowed for each member of a household of
a claimant having income of more than $12,500 but not more than $25,000, an amount
equal to $30. There shall be allowed for a claimant who qualifies for an additional personal
exemption amount pursuant to K.S.A. 79-32,121, and amendments thereto, an additional
amount of $30 or $60, as the case requires. All such claims 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 of taxation or by a person or persons designated by the director.

(2) As an alternative to the procedure described by paragraph 1, for all taxable years
commencing after December 31, 1997, there shall be allowed as a credit against the tax
liability of a resident individual imposed under the Kansas income tax act an amount equal
to $60 or $30, as the case requires, for each member of a household. There shall be allowed
for a claimant who qualifies for an additional personal exemption amount pursuant to K.S.A.
79-32,121, and amendments thereto, an additional amount of $30 or $60, as the case re-
quires. If the amount of such tax credit exceeds the claimant's income tax liability for such
taxable year, such excess amount shall be refunded to the claimant.

(b) A head of household shall make application for refunds for all members of the same
household upon a common form provided for the making of joint claims. All claims paid to
members of the same household shall be paid as a joint claim by means of a single warrant.

(c) No claim for a refund of taxes under the provisions of K.S.A. 79-3632 et seq. shall be
paid or allowed unless such claim is actually filed with and in the possession of the depart-
ment of revenue on or before April 15 of the year next succeeding the year in which such
taxes were paid. The director of taxation may: (1) Extend the time for filing any claim under
the provisions of this act when good cause exists therefor; or (2) accept a claim filed after
the deadline for filing in the case of sickness, absence or disability of the claimant if such
claim has been filed within four years of such deadline.

New Sec. 13. The provisions of sections 13 through 19 and amendments thereto of this
act may be cited as the streamlined sales tax system for the 21st century act.

New Sec. 14. The legislature finds that:

(a) State and local tax systems should treat transactions in a competitively neutral manner;

(b) a simplified sales and use tax system that treats all transactions in a competitively
neutral manner will strengthen and preserve the sales and use tax as vital state and local
revenue sources and preserve state fiscal sovereignty;

(c) remote sellers should not receive preferential tax treatment at the expense of local
``main street'' merchants, nor should such vendors be burdened with special, discriminatory
or multiple taxes.

(d) the state should simplify sales and use taxes to reduce the administrative burden of
collection; and

(e) while states have the sovereign right to set their own tax policies, states working
together have the opportunity to develop a more simple, uniform, and fair system of state
sales and use taxation without federal government mandates of interference.

New Sec. 15. The department of revenue shall enter into discussions with states regarding
development of a multi-state, voluntary, streamlined system for sales and use tax collection
and administration. These discussions shall focus on a system that would have the capability
to determine whether the transaction is taxable or tax exempt, the appropriate tax rate
applied to the transaction, and the total tax due on the transaction, and shall provide a
method of collecting and remitting sales and use taxes to the state. Such system may provide
compensation for the costs of collecting and remitting sales and use taxes. Discussions
between the department and other states may include, but are not limited to:

(a) The development of a ``joint request for information'' from potential public and pri-
vate parties governing the specifications for such system;

(b) the mechanism for compensating parties for the development and operation of such
system;

(c) establishment of minimum statutory simplification measures necessary for state par-
ticipation in such system; and

(d) measures to preserve confidentiality of taxpayer information and privacy rights of
consumers.

Following these discussions, the department may proceed to issue a joint request for
information.

New Sec. 16. The department is authorized to participate in a sales tax pilot project with
other states and selected businesses to test means for simplifying sales and use tax admin-
istration and may enter into joint agreements for that purpose.

(a) Agreements to participate in the test shall establish provisions for the administration,
imposition and collection of sales and use taxes resulting in revenues paid that are the same
as would be paid under articles 36 and 37 of chapter 79 of the Kansas Statutes Annotated.

(b) Parties to the agreements are excused from complying with the provisions of articles
36 and 37 of chapter 79 of the Kansas Statutes Annotated to the extent a different procedure
is required by the agreements, except for confidentiality of taxpayer information as detailed
in section 17, and amendments thereto.

(c) Agreements authorized under this section shall terminate no later than December
31, 2001.

New Sec. 17. Return information submitted to any party or parties acting for and on
behalf of the state shall be treated as confidential. Disclosure of such information necessary
under sections 15 and 16 shall be pursuant to a written agreement between the department
and the party or parties. Such party or parties shall be bound by the same requirements of
confidentiality as the department, under K.S.A. 79-3614, and amendments thereto.

New Sec. 18. There is hereby created a legislative oversight committee which shall consist
of the chairpersons and minority party leaders of the standing committees on taxation of
the senate and the house of representatives. The department shall provide testimony and
information as requested by the committee. The department shall provide quarterly reports
to the governor, the speaker of the house, minority leader of the house, president of the
senate and senate minority leader and to the members of the legislative oversight committee
on the progress of multi-state discussions.

New Sec. 19. By March 1, 2001, the department shall report to the governor and to the
speaker of the house, minority leader of the house, president of the senate and senate
minority leader and to the members of the legislative oversight committee on the status of
multi-state discussions and, if a proposed system has been agreed upon by participating
states, shall also recommend whether the state should participate in such system.

Sec. 20. K.S.A. 1999 Supp. 12-187, 12-188, 12-189, 12-189c, 12-1694, 12-1698, 12-2536,
75-5133, 79-3602, 79-3603, 79-3606, as amended by section 1 of 2000 House Bill No. 2011,
79-3633 and 79-3635 are hereby repealed. Sec. 21. This act shall take effect and be in
force from and after its publication in the statute book.''; In the title, in line 13, by striking
``sales'' and inserting ``excise''; also, in line 13, by striking all after the semicolon; by striking
all in lines 14 and 15 and inserting ``amending K.S.A. 1999 Supp. 12-187, 12-188, 12-189,
12-1694, 12-1698, 12-2536, 75-5133, 79-3602, 79-3603, 79-3606, as amended by section 1
of 2000 House Bill No. 2011, 79-3633 and 79-3635 and repealing the existing sections; also
repealing K.S.A. 1999 Supp. 12-189c.;

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

Susan Wagle

Clay Aurand

Melvin G. Minor
Conferees on the part of House

Audrey Langworthy

Les Donovan

Janis K. Lee
Conferees on part of Senate

On motion of Rep. Wagle to adopt the conference committee report on SB 59, Rep.
Toplikar offered a substitute motion to not adopt the conference committee report and
asked that a new conference committee be appointed.

Roll call was demanded.

On roll call, the vote was: Yeas 55; Nays 69; Present but not voting: 0; Absent or not
voting: 1.

Yeas: Ballard, Barnes, Burroughs, Campbell, Carmody, Cox, Crow, Dahl, Dean, Ed-
monds, Faber, Farmer, Findley, Flaharty, Flora, Garner, Gilbert, Grant, Gregory, Haley,
Henderson, Henry, Holmes, Howell, Huff, Kirk, Klein, Phill Kline, Kuether, Landwehr,
Lane, M. Long, Mays, McCreary, McKechnie, Merrick, Judy Morrison, Myers, Nichols,
O'Connor, Palmer, Pauls, Powers, Ray, Reardon, Rehorn, Ruff, Shriver, Spangler, Swenson,
Toelkes, Tomlinson, Toplikar, Vining, Welshimer.

Nays: Aday, Adkins, Alldritt, Allen, Aurand, Ballou, Beggs, Benlon, Bethell, Boston,
Compton, Dreher, Empson, Feuerborn, Flower, Freeborn, Gatewood, Geringer, Glasscock,
Hayzlett, Helgerson, Hermes, Horst, Humerickhouse, Hutchins, Jenkins, Jennison, John-
son, Phil Kline, Krehbiel, Larkin, Light, Lightner, Lloyd, P. Long, Loyd, Mason, Mayans,
McClure, McKinney, Minor, Mollenkamp, Jim Morrison, Neufeld, O'Brien, O'Neal, Os-
borne, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Reinhardt, Schwartz, Sharp, Show-
alter, Shultz, Sloan, Stone, Storm, Tanner, Tedder, Thimesch, Vickrey, Wagle, Weber, Wei-
land, Wells, Wilk.

Present but not voting: None.

Absent or not voting: Johnston.

The substitute motion did not prevail.

The question then reverted back to the original motion of Rep. Wagle and the conference
committee report was adopted.

On roll call, the vote was: Yeas 98; Nays 26; Present but not voting: 0; Absent or not
voting: 1.

Yeas: Aday, Adkins, Alldritt, Allen, Aurand, Ballard, Barnes, Beggs, Bethell, Boston, Bur-
roughs, Compton, Dahl, Dreher, Empson, Faber, Farmer, Feuerborn, Findley, Flaharty,
Flower, Freeborn, Gatewood, Geringer, Glasscock, Grant, Gregory, Hayzlett, Helgerson,
Henry, Hermes, Holmes, Horst, Howell, Humerickhouse, Hutchins, Jenkins, Jennison,
Johnson, Kirk, Klein, Phil Kline, Krehbiel, Kuether, Larkin, Light, Lightner, Lloyd, M.
Long, P. Long, Loyd, Mason, Mayans, Mays, McClure, McCreary, McKinney, Minor, Mol-
lenkamp, Jim Morrison, Myers, Neufeld, Nichols, O'Brien, O'Neal, Osborne, Palmer, Pauls,
E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Rehorn, Reinhardt, Ruff,
Schwartz, Sharp, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tan-
ner, Tedder, Thimesch, Toelkes, Vickrey, Vining, Wagle, Weber, Weiland, Welshimer, Wilk.

Nays: Ballou, Benlon, Campbell, Carmody, Cox, Crow, Dean, Edmonds, Flora, Garner,
Gilbert, Haley, Henderson, Huff, Phill Kline, Landwehr, Lane, McKechnie, Merrick, Judy
Morrison, O'Connor, Ray, Reardon, Tomlinson, Toplikar, Wells.

Present but not voting: None.

Absent or not voting: Johnston.

EXPLANATIONS OF VOTE Mr. Speaker: I oppose the bi-state tax and I am almost certain that Wyandotte County
will reject it.

However, I believe in direct democracy whenever possible and that is the only reason I
vote yes on the bi-state proposal, SB 59.--Rick Rehorn, Dale Swenson

Mr. Speaker: I vote ``no'' on SB 59. This ``omnibus sales tax bill'' contains provisions
with which I disagree, specifically the bi-state cultural tax which transfers Kansas taxpayers'
dollars to the support of Missouri tourist attractions. Additionally this bill fails to include a
much needed exemption for non-profit humane societies.

SB 59 contains many worthwhile provisions, notably the continuation of the exemption
on grain storage. However, inclusion of ``bi-state'' and exclusion of the humane societies
exemption poisons the well. I vote no.--John Edmonds

Mr. Speaker: I vote yes on SB 59. The bill provides for revisions to the existing Met-
ropolitan Culture District Compact. These revisions allow voters greater flexibility in the
scope of projects that can be funded from a bi-state sales tax. Also, this bill prevents any
new tax from being approved until the current bi-state tax sunsets. Remember no bi-state
sales tax can be imposed for any purpose in Johnson County unless the voters of Johnson
County approve the tax. I trust Johnson Countians to tax themselves only when they believe
it is in their best interest to do so.--David Adkins

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 393, 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, in line 38, by striking ``or other audit''; in line 39, by striking ``work'';

On page 2, in line 3, by striking ``or other audit work'';

On page 7, following line 32, by inserting:

``New Sec. 22. (a) On and after the effective date of this act, all leases for office space in
nonstate-owned buildings and facilities for state officers and employees shall be negotiated
and entered into by the secretary of administration, or the secretary's designee, in accord-
ance with this section and the policies and procedures adopted thereunder. The secretary
of administration shall plan and coordinate the leasing of office space in nonstate-owned
buildings and facilities for state officers and employees of all state agencies. The head of
each state agency shall provide information to and cooperate with the secretary of admin-
istration for the purposes of implementing and administering this section and the policies
and procedures prescribed by the secretary of administration.

(b) The secretary of administration shall develop and adopt policies and procedures for
centralizing the function of leasing of office space in nonstate-owned buildings and facilities
for state officers and employees of all state agencies. After June 30, 2000, each existing lease
of office space for state officers and employees in nonstate-owned buildings and facilities
may be renewed or extended only upon approval by the secretary of administration and in
accordance with policies and procedures prescribed by the secretary.

(c) The secretary of administration may delegate authority to any state agency to negotiate
and enter into leases for office space in nonstate-owned buildings and facilities for state
officers and employees of the state agency, including renewals or extensions of existing
leases, under conditions and procedures prescribed by the secretary in accordance with this
section.

(d) No lease of office space for state officers and employees in nonstate-owned buildings
or facilities, which is for the lease of more than 10,000 net assignable square feet or for a
term longer than 24 months, shall be entered into or approved by the secretary of admin-
istration unless the secretary of administration has first advised and consulted with the joint
committee on state building construction.

(e) The secretary of administration is hereby authorized to fix, charge and collect a lease
negotiation service fee to recover the costs incurred by the department in providing lease
negotiation services under this section. Such fee shall be paid in annual installments over
the term of such lease. Such fees shall be deposited in the state treasury and credited to
the state buildings operating fund.

(f) Nothing in this section shall be construed as requiring the renegotiation of the terms
of any lease in existence on July 1, 2000. At the request of an agency, the secretary may
renegotiate a lease in existence on July 1, 2000.'';

By renumbering sections accordingly;

In the title, in line 14, by striking all after ``ACT''; by striking all in line 15; in line 16, by
striking all before the semicolon and inserting ``concerning state agencies, state officers and
state office space'';

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

Kenny A. Wilk

Deena L. Horst

Bonnie Sharp
Conferees on the part of House

Lana Oleen

Ben Vidricksen

Sherman Jones
Conferees on part of Senate

On motion of Rep. Wilk, the conference committee report on SB 393 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, Henry, Hermes, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins,
Jenkins, Jennison, Johnson, 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'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: Johnston.

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2017, 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 8, after line 11, by inserting the following:

``New Sec. 6. (a) Any research foundation is authorized to initiate and complete capital
improvement projects on state-owned property of the state educational institution that the
research foundation is organized and operated to benefit if the capital improvement projects
have received prior approval by the state board of regents and the plans and specifications
for such capital improvement projects have received prior approval by the secretary of
administration. Each such capital improvement project shall be totally financed from non-
state moneys of the research foundation. The buildings and facilities constructed and the
repairs, remodeling and renovations of state buildings and facilities conducted under such
capital improvement projects shall become the property of the state of Kansas upon com-
pletion and acceptance by the secretary of administration. No such capital improvement
project shall be approved by the state board of regents without having first advised and
consulted with the joint committee on state building construction.

(b) As used in this section:

(1) ``Capital improvement project'' means a project to construct one or more buildings
or facilities for a state educational institution or to repair, remodel or renovate one or more
state buildings or facilities of a state educational institution and, in any such case, which has
a total cost of $1,000,000 or less;

(2) ``research foundation'' means any not-for-profit research foundation organized and
operated for the primary purpose of encouraging, fostering and conducting scholarly inves-
tigation and other types of research for the benefit of a state educational institution;

(3) ``nonstate moneys'' means moneys received from any source except the state of Kansas
or any agency thereof; and

(4) ``state educational institution'' has the meaning ascribed thereto by K.S.A. 76-711 and
amendments thereto.

Sec. 7. K.S.A. 76-833 is hereby amended to read as follows: 76-833. (a) As used in this
~~act:~~ section,

(1) ``Capital improvement project'' means a project which has a total cost of ~~$500,000~~
$1,000,000 or less.;

(2) ``private moneys'' means moneys from nongovernmental sources.; and

(3) ``state educational institution'' has the meaning ascribed thereto by K.S.A. 76-711 and
amendments thereto.

(b) ~~The university of Kansas medical center~~ Each state educational institution is author-
ized to construct buildings and facilities on state-owned property of the ~~university of Kansas~~
~~medical center~~ state educational institution from private moneys granted or given to such
institution 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 inspected by the division of architectural services. Such capital improve-
ment projects financed totally from private moneys shall be exempt from the provisions of
K.S.A. 75-3739, 75-3740, 75-3740a, 75-3741, 75-3741a, 75-3741b, 75-3742, 75-3743 and
75-3744, and amendments thereto. Such capital improvement projects shall be totally fi-
nanced from private moneys and the buildings and facilities constructed shall become the
property of the state of Kansas upon completion and acceptance by the secretary of admin-
istration. 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.

(c) ~~The university of Kansas medical center~~ Each state educational institution is author-
ized to repair, remodel or renovate state buildings and facilities of the ~~university of Kansas~~
~~medical center~~ state educational institution from private moneys granted or given to such
institution 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
of such projects have received prior approval by the secretary of administration. Such capital
improvement projects shall be inspected by the division of architectural services. Such cap-
ital improvement projects financed totally from private moneys shall be exempt from the
provisions of K.S.A. 75-3739, 75-3740, 75-3740a, 75-3741, 75-3741a, 75-3741b, 75-3742,
75-3743 and 75-3744, and amendments thereto. Such capital improvement projects shall
be totally financed from private moneys and the improvements shall become the property
of the state of Kansas upon completion and acceptance by the secretary of administration.
No such capital improvement project to repair, remodel or renovate any such 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.

~~(d) The provisions of this section shall expire on June 30, 2001.'';~~

And renumbering remaining sections accordingly;

On page 8, in line 12, by striking ``and'' and inserting a comma; in line 13, after ``3352'',
by inserting ``and 76-833'';

On page 1, in the title, in line 21, by striking the first ``and'' and inserting ``, 75-3351,'';
in line 22, before ``repealing'', by inserting ``76-833 and'';

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

Nick Jordan

Stephen R. Morris

Janis K. Lee
Conferees on the part of Senate

David Adkins

Melvin J. Neufeld

Rocky Nichols
Conferees on part of House

On motion of Rep. Adkins, the conference committee report on HB 2017 was adopted.

On roll call, the vote was: Yeas 117; Nays 7; Present but not voting: 0; Absent or not
voting: 1.

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

Nays: Alldritt, Faber, Garner, Klein, Loyd, McKinney, Reardon.

Present but not voting: None.

Absent or not voting: Johnston.

MOTIONS TO CONCUR AND NONCONCUR
On motion of Rep. Sloan to concur in Senate amendments to HB 2144, the motion did
not prevail and the bill remains in conference.

On roll call, the vote was: Yeas 36; Nays 86; Present but not voting: 0; Absent or not
voting: 3.

Yeas: Alldritt, Ballard, Ballou, Barnes, Bethell, Burroughs, Campbell, Crow, Findley,
Flaharty, Flora, Garner, Gatewood, Haley, Helgerson, Holmes, Kirk, Klein, Phill Kline,
Kuether, Larkin, McClure, McKechnie, McKinney, Nichols, O'Brien, O'Connor, E. Peter-
son, Phelps, Pottorff, Powers, Sloan, Tanner, Thimesch, Toelkes, Welshimer.

Nays: Aday, Adkins, Allen, Aurand, Beggs, Benlon, Boston, Compton, Cox, Dahl, Dean,
Dreher, Edmonds, Empson, Faber, Farmer, Feuerborn, Flower, Freeborn, Geringer, Gil-
bert, Glasscock, Grant, Gregory, Hayzlett, Henderson, Henry, Hermes, Horst, Howell,
Huff, Humerickhouse, Hutchins, Jenkins, Jennison, Johnson, Phil Kline, Krehbiel, Land-
wehr, Lane, Light, Lightner, Lloyd, M. Long, P. Long, Loyd, Mason, Mayans, Mays,
McCreary, Merrick, Minor, Mollenkamp, Jim Morrison, Judy Morrison, Myers, Neufeld,
O'Neal, Osborne, Palmer, Pauls, J. Peterson, Powell, Ray, Reardon, Rehorn, Reinhardt,
Ruff, Schwartz, Sharp, Showalter, Shriver, Shultz, Spangler, Stone, Storm, Tedder, Tomlin-
son, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Wilk.

Present but not voting: None.

Absent or not voting: Carmody, Johnston, Swenson.

MESSAGE FROM THE SENATE
The Senate accedes to the request of the House for a conference on Sub. HB 2683 and
has appointed Senators Emert, Vratil and Goodwin as second conferees on the part of the
Senate.

INTRODUCTION OF ORIGINAL MOTIONS
On motion of Rep. Glasscock, pursuant to subsection (k) of Joint Rule 4 of the Joint Rules
of the Senate and House of Representatives, the rules were suspended for the purpose of
considering SB 481; H. Sub. for SB 323; SB 447.

INTRODUCTION OF ORIGINAL MOTIONS

Pursuant to Joint Rule 3 (f), Rep. McKechnie moved that the rules be suspended and
that no copies be printed for distribution of the conference committee report on H. Sub.
for SB 323 . The motion prevailed.

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to HOUSE Substitute for SB 323, 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, by striking all in lines 19 through 43;

By striking all on pages 2 through 35 and inserting new material to read as follows:

``Section 1. K.S.A. 21-4602 is hereby amended to read as follows: 21-4602. As used in
K.S.A. 21-4601 through 21-4621, and amendments thereto:

(a) ``Court'' means any court having jurisdiction and power to sentence offenders for
violations of the laws of this state.

(b) ``Suspension of sentence'' means a procedure under which a defendant, found guilty
of a crime, upon verdict or plea, is released by the court without imposition of sentence.
The release may be with or without supervision in the discretion of the court. In felony
cases, the court may include confinement in a county jail not to exceed 30 60 days, which
need not be served consecutively, as a condition of suspension of sentence pursuant to
subsection (b)(4) of K.S.A. 21-4603 and amendments thereto.

(c) ``Probation'' means a procedure under which a defendant, found guilty of a crime
upon verdict or plea, is released by the court after imposition of sentence, without impris-
onment except as provided in felony cases, subject to conditions imposed by the court and
subject to the supervision of the probation service of the court or community corrections.
In felony cases, the court may include confinement in a county jail not to exceed 30 60
days, which need not be served consecutively, as a condition of an original probation sen-
tence and up to 60 days in a county jail upon each revocation of the probation sentence
pursuant to subsection (b)(3) of K.S.A. 21-4603 and amendments thereto.

(d) ``Parole'' means the release of a prisoner to the community by the Kansas parole
board prior to the expiration of such prisoner's term, subject to conditions imposed by the
board and to the secretary of correction's supervision. Parole also means the release by a
court of competent jurisdiction of a person confined in the county jail or other local place
of detention after conviction and prior to expiration of such person's term, subject to con-
ditions imposed by the court and its supervision. Where a court or other authority has filed
a warrant against the prisoner, the Kansas parole board or paroling court may release the
prisoner on parole to answer the warrant of such court or authority.

(e) ``Correctional institution'' means the Lansing correctional facility, Hutchinson cor-
rectional facility, Topeka correctional facility, Norton correctional facility, Ellsworth cor-
rectional facility, Winfield correctional facility, Osawatomie correctional facility, Larned
correctional mental health facility, Toronto correctional work facility, Stockton correctional
facility, Wichita work release facility, El Dorado correctional facility, and any other correc-
tional institution established by the state for the confinement of offenders, and under control
of the secretary of corrections.

(f) ``Community correctional services program'' means a program which operates under
the community corrections act and to which a defendant is assigned for supervision, con-
finement, detention, care or treatment, subject to conditions imposed by the court. A de-
fendant assigned to a community correctional services program shall be subject to the con-
tinuing jurisdiction of the court and in no event shall be considered to be in the custody of
or under the supervision of the secretary of corrections.

(g) ``Postrelease supervision,'' for crimes committed on or after July 1, 1993, means the
same as provided in K.S.A. 21-4703 and amendments thereto.

Sec. 2. K.S.A. 1999 Supp. 21-4603 is hereby amended to read as follows: 21-4603. (a)
Whenever any person has been found guilty of a crime and the court finds that an adequate
presentence investigation cannot be conducted by resources available within the judicial
district, including mental health centers and mental health clinics, the court may require
that a presentence investigation be conducted by the Topeka correctional facility or by the
state security hospital. If the offender is sent to the Topeka correctional facility or the state
security hospital for a presentence investigation under this section, the correctional facility
or hospital may keep the offender confined for a maximum of 60 days, except that an inmate
may be held for a longer period of time on order of the secretary, or until the court calls
for the return of the offender. While held at the Topeka correctional facility or the state
security hospital the defendant may be treated the same as any person committed to the
secretary of corrections or secretary of social and rehabilitation services for purposes of
maintaining security and control, discipline, and emergency medical or psychiatric treat-
ment, and general population management except that no such person shall be transferred
out of the state or to a federal institution or to any other location unless the transfer is
between the correctional facility and the state security hospital. The correctional facility or
the state security hospital shall compile a complete mental and physical evaluation of such
offender and shall make its findings and recommendations known to the court in the pre-
sentence report.

(b) Except as provided in subsection (c), 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 or, if confinement
is for a term less than one year, to jail for the term provided by law;

(2) impose the fine applicable to the offense;

(3) release the defendant on probation subject to such conditions as the court may deem
appropriate, including orders requiring full or partial restitution. In felony cases, the court
may include confinement in a county jail not to exceed 30 60 days, which need not be served
consecutively, as a condition of an original probation sentence and up to 60 days in a county
jail upon each revocation of the probation sentence;

(4) suspend the imposition of the sentence subject to such conditions as the court may
deem appropriate, including orders requiring full or partial restitution. In felony cases, the
court may include confinement in a county jail not to exceed 30 60 days, which need not
be served consecutively, as a condition of suspension of sentence;

(5) assign the defendant to a community correctional services program subject to the
provisions of K.S.A. 75-5291, and amendments thereto, and such conditions as the court
may deem appropriate, including orders requiring full or partial restitution;

(6) assign the defendant to a conservation camp for a period not to exceed six months;

(7) assign the defendant to a house arrest program pursuant to K.S.A. 21-4603b and
amendments thereto;

(8) order the defendant to attend and satisfactorily complete an alcohol or drug education
or training program as provided by subsection (3) of K.S.A. 21-4502 and amendments
thereto;

(9) order the defendant to pay the administrative fee authorized by K.S.A. 1999 Supp.
22-4529 and amendments thereto, unless waived by the court; or

(10) impose any appropriate combination of subsections (b)(1) through (b)(9).

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 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.

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.

The court in committing a defendant to the custody of the secretary of corrections shall
fix a maximum term of confinement within the limits provided by law. In those cases where
the law does not fix a maximum term of confinement for the crime for which the defendant
was convicted, the court shall fix the maximum term of such confinement. In all cases where
the defendant is committed to the custody of the secretary of corrections, the court shall
fix the minimum term within the limits provided by law.

(c) Whenever any juvenile felon, as defined in K.S.A. 38-16,112, prior to its repeal, has
been found guilty of a class A or B felony, the court shall commit the defendant to the
custody of the secretary of corrections and may impose the fine applicable to the offense.

(d) (1) Except when an appeal is taken and determined adversely to the defendant as
provided in subsection (d)(2), at any time within 120 days after a sentence is imposed, after
probation or assignment to a community correctional services program has been revoked,
the court may modify such sentence, revocation of probation or assignment to a community
correctional services program by directing that a less severe penalty be imposed in lieu of
that originally adjudged within statutory limits and shall modify such sentence if recom-
mended by the Topeka correctional facility unless the court finds and sets forth with par-
ticularity the reasons for finding that the safety of members of the public will be jeopardized
or that the welfare of the inmate will not be served by such modification.

(2) If an appeal is taken and determined adversely to the defendant, such sentence may
be modified within 120 days after the receipt by the clerk of the district court of the mandate
from the supreme court or court of appeals.

(e) The court shall modify the sentence at any time before the expiration thereof when
such modification is recommended by the secretary of corrections unless the court finds
and sets forth with particularity the reasons for finding that the safety of members of the
public will be jeopardized or that the welfare of the inmate will not be served by such
modification. The court shall have the power to impose a less severe penalty upon the
inmate, including the power to reduce the minimum below the statutory limit on the min-
imum term prescribed for the crime of which the inmate has been convicted. The recom-
mendation of the secretary of corrections, the hearing on the recommendation and the order
of modification shall be made in open court. Notice of the recommendation of modification
of sentence and the time and place of the hearing thereon shall be given by the inmate, or
by the inmate's legal counsel, at least 21 days prior to the hearing to the county or district
attorney of the county where the inmate was convicted. After receipt of such notice and at
least 14 days prior to the hearing, the county or district attorney shall give notice of the
recommendation of modification of sentence and the time and place of the hearing thereon
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 next of kin if the next of kin's
address is known to the county or district attorney. Proof of service of each notice required
to be given by this subsection shall be filed with the court.

(f) After such defendant has been assigned to a conservation camp but prior to the end
of 180 days, the chief administrator of such camp shall file a performance report and rec-
ommendations with the court. The court shall enter an order based on such report and
recommendations modifying the sentence, if appropriate, by sentencing the defendant to
any of the authorized dispositions provided in subsection (b), except to reassign such person
to a conservation camp as provided in subsection (b)(6).

(g) Dispositions which do not involve commitment to the custody of the secretary of
corrections and commitments which are revoked within 120 days shall not entail the loss by
the defendant of any civil rights. Placement of offenders pursuant to subsection (b)(6) in a
conservation camp established by the secretary of corrections shall not entail the loss by the
defendant of any civil rights.

(h) 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.

(i) An application for or acceptance of probation, suspended sentence or assignment to
a community correctional services program shall not constitute an acquiescence in the judg-
ment 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, sus-
pended sentence or assignment to a community correctional services program.

(j) When it is provided by law that a person shall be sentenced pursuant to K.S.A. 21-
4628, and amendments thereto, the provisions of this section shall not apply.

(k) The provisions of this section shall apply to crimes committed before July 1, 1993.

Sec. 3. K.S.A. 1999 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 60 days, which need not be served
consecutively, as a condition of an original probation sentence and up to 60 days in a county
jail upon each revocation of the probation sentence, or community corrections placement;

(4) assign the defendant to a community correctional services program ~~in presumptive~~
~~nonprison cases~~ as provided in K.S.A. 75-5291, and amendments thereto, or through a de-
parture 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 intensive
supervision by a community correctional services program, if the offender successfully com-
pletes the conservation camp program;

(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 education
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. 1999 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 correc-
tional 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,
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 guide-
lines 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~~ a 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. 4. K.S.A. 21-4606b is hereby amended to read as follows: 21-4606b. (a) If probation
is not granted pursuant to K.S.A. 21-4606a, and amendments thereto, subject to the pro-
visions of K.S.A. 75-5291, and amendments thereto, the presumptive sentence for a person
convicted of a class D or E felony shall be assignment to a community correctional services
program on terms the court determines.

(b) In determining whether to impose the presumptive sentence provided by this section,
the court shall consider whether any of the following aggravating circumstances existed:

(1) Whether the crime is a felony violation of the uniform controlled substances act or
an attempt to commit such an offense;

(2) whether the crime is a crime specified in article 34, 35 or 36 of chapter 21 of the
Kansas Statutes Annotated or an attempt to commit such an offense; or

(3) any prior record of the person's having been convicted of a felony or having been
adjudicated to have committed, while a juvenile, an offense which would constitute a felony
if committed by an adult.

(c) The provisions of this section shall not apply to crimes committed on or after July 1,
1993.

Sec. 5. K.S.A. 1999 Supp. 21-4610 is hereby amended to read as follows: 21-4610. (a)
Except as required by this subsection and subsection (d), nothing in this section shall be
construed to limit the authority of the court to impose or modify any general or specific
conditions of probation, suspension of sentence or assignment to a community correctional
services program, except that the court shall condition any order granting probation, sus-
pension of sentence or assignment to a community correctional services program on the
defendant's obedience of the laws of the United States, the state of Kansas and any other
jurisdiction to the laws of which the defendant may be subject. The provisions of K.S.A. 75-
5291, and amendments thereto, shall be applicable to any assignment to a community cor-
rectional services program pursuant to this section.

(b) The court services officer or community correctional services officer may recom-
mend, and the court may order, the imposition of any conditions of probation, suspension
of sentence or assignment to a community correctional services program. For crimes com-
mitted on or after July 1, 1993, in presumptive nonprison cases, the court services officer
or community correctional services officer may recommend, and the court may order, the
imposition of any conditions of probation or assignment to a community correctional services
program. The court may at any time order the modification of such conditions, after notice
to the court services officer or community correctional services officer and an opportunity
for such officer to be heard thereon. The court shall cause a copy of any such order to be
delivered to the court services officer and the probationer or to the community correctional
services officer and the community corrections participant, as the case may be. The provi-
sions of K.S.A. 75-5291, and amendments thereto, shall be applicable to any assignment to
a community correctional services program pursuant to this section.

(c) The court may impose any conditions of probation, suspension of sentence or assign-
ment to a community correctional services program that the court deems proper, including
but not limited to requiring that the defendant:

(1) Avoid such injurious or vicious habits, as directed by the court, court services officer
or community correctional services officer;

(2) avoid such persons or places of disreputable or harmful character, as directed by the
court, court services officer or community correctional services officer;

(3) report to the court services officer or community correctional services officer as
directed;

(4) permit the court services officer or community correctional services officer to visit
the defendant at home or elsewhere;

(5) work faithfully at suitable employment insofar as possible;

(6) remain within the state unless the court grants permission to leave;

(7) pay a fine or costs, applicable to the offense, in one or several sums and in the manner
as directed by the court;

(8) support the defendant's dependents;

(9) reside in a residential facility located in the community and participate in educational,
counseling, work and other correctional or rehabilitative programs;

(10) 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 community;

(11) perform services under a system of day fines whereby the defendant is required to
satisfy fines, costs or reparation or restitution obligations by performing services for a period
of days determined by the court on the basis of ability to pay, standard of living, support
obligations and other factors;

(12) participate in a house arrest program pursuant to K.S.A. 21-4603b, and amendments
thereto;

(13) order the defendant to pay the administrative fee authorized by K.S.A. 1999 Supp.
22-4529 and amendments thereto, unless waived by the court; or

(14) in felony cases, except for violations of K.S.A. 8-1567 and amendments thereto, be
confined in a county jail not to exceed 30 60 days, which need not be served consecutively.

(d) In addition to any other conditions of probation, suspension of sentence or assignment
to a community correctional services program, the court shall order the defendant to comply
with each of the following conditions:

(1) Make reparation or restitution to the aggrieved party for the damage or loss caused
by the defendant's crime, in an amount and manner determined by the court and to the
person specified by the court, 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;

(2) pay the probation or community correctional services fee pursuant to K.S.A. 21-
4610a, and amendments thereto; and

(3) 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 of 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 serv-
ices 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.

Sec. 6. K.S.A. 1999 Supp. 21-4611 is hereby amended to read as follows: 21-4611. (a)
The period of suspension of sentence, probation or assignment to community corrections
fixed by the court shall not exceed five years in felony cases involving crimes committed
prior to July 1, 1993, or two years in misdemeanor cases, subject to renewal and extension
for additional fixed periods not exceeding five years in such felony cases, nor two years in
misdemeanor cases. In no event shall the total period of probation, suspension of sentence
or assignment to community corrections for a felony committed prior to July 1, 1993, exceed
the greatest maximum term provided by law for the crime, except that where the defendant
is convicted of nonsupport of a child, the period may be continued as long as the respon-
sibility for support continues. Probation, suspension of sentence or assignment to community
corrections may be terminated by the court at any time and upon such termination or upon
termination by expiration of the term of probation, suspension of sentence or assignment
to community corrections, an order to this effect shall be entered by the court. The provi-
sions of K.S.A. 75-5291, and amendments thereto, shall be applicable to any assignment to
a community correctional services program pursuant to this section.

(b) The district court having jurisdiction of the offender may parole any misdemeanant
sentenced to confinement in the county jail. The period of such parole shall be fixed by the
court and shall not exceed two years and shall be terminated in the manner provided for
termination of suspended sentence and probation.

(c) For all crimes committed on or after July 1, 1993, the ~~recommended~~ duration of
probation in ~~all~~ felony cases sentenced for the following severity levels on the sentencing
guidelines grid for nondrug crimes and the sentencing guidelines grid for drug crimes is as
follows:

(1) For nondrug crimes the recommended duration of probations is:

(A) Thirty-six months for crimes in crime severity levels 1 through 5; and

(B) 24 months for crimes in crime severity levels 6 ~~through 10~~ and 7~~; and~~.

(2) For drug crimes:

~~(A) Thirty-six~~ the recommended duration of probation is 36 months for crimes in crime
severity levels 1 ~~through 3~~ and 2~~; and~~.

~~(B) 24 months for crimes in crime severity level 4.~~

(3) In felony cases sentenced at severity levels 9 and 10 on the sentencing guidelines grid
for nondrug crimes and severity level 4 on the sentencing guidelines grid for drug crimes, if
a nonprison sanction is imposed, the court shall order the defendant to serve a period of
probation, or assignment to a community correctional services program as provided under
K.S.A. 75-5291 et seq., and amendments thereto, of up to 12 months in length.

(4) In felony cases sentenced at severity level 8 on the sentencing guidelines grid for
nondrug crimes and severity level 3 on the sentencing guidelines grid for drug crimes, if a
nonprison sanction is imposed, the court shall order the defendant to serve a period of
probation, or assignment to a community correctional services program, as provided under
K.S.A. 75-5291 et seq., and amendments thereto, of up to 18 months in length.

(5) If the court finds and sets forth with particularity the reasons for finding that the
safety of the members of the public will be jeopardized or that the welfare of the inmate will
not be served by the length of the probation terms provided in subsections (c)(3) and (c)(4),
the court may impose a longer period of probation. Such an increase shall not be considered
a departure and shall not be subject to appeal.

(6) Except as provided in subsections ~~(c)(4) and (c)(5)~~ (c)(7) and (c)(8), the total period
in all cases shall not exceed 60 months, or the maximum period of the prison sentence that
could be imposed whichever is longer. Nonprison sentences may be terminated by the court
at any time.

~~(4)~~ (7) If the defendant is convicted of nonsupport of a child, the period may be contin-
ued as long as the responsibility for support continues. If the defendant is ordered to pay
full or partial restitution, the period may be continued as long as the amount of restitution
ordered has not been paid.

~~(5)~~ (8) The court may modify or extend the offender's period of supervision, pursuant
to a modification hearing and a judicial finding of necessity. Such extensions may be made
for a maximum period of five years or the maximum period of the prison sentence that
could be imposed, whichever is longer, inclusive of the original supervision term.

(d) The provisions of subsection (c), as amended by this act, shall be applied retroactively.
The sentencing court shall direct that a review of all persons serving a nonprison sanction
for a crime in severity levels 8, 9 or 10 of the sentencing guidelines grid for nondrug crimes
or a crime in severity levels 3 or 4 of the sentencing guidelines grid for drug crimes be
conducted. On or before September 1, 2000, the duration of such person's probation shall
be modified in conformity with the provisions of subsection (c).

Sec. 7. K.S.A. 22-3431 is hereby amended to read as follows: 22-3431. (a) Whenever it
appears to the chief medical officer of the institution to which a defendant has been com-
mitted under K.S.A. 22-3430 and amendments thereto, that the defendant will not be im-
proved by further detention in such institution, the chief medical officer shall give written
notice thereof to the district court where the defendant was convicted. Such notice shall
include, but not be limited to: (1) Identification of the patient; (2) the course of treatment;
(3) a current assessment of the defendant's psychiatric condition; (4) recommendations for
future treatment, if any; and (5) recommendations regarding discharge, if any.

(b) Upon receiving such notice, the district court shall order that a hearing be held. The
court shall give notice of the hearing to: (1) The state hospital or state security hospital
where the defendant is under commitment; (2) the district or county attorney of the county
from which the defendant was originally committed; (3) the defendant; and (4) the defend-
ant's attorney. The court shall inform the defendant that such defendant is entitled to coun-
sel and that counsel will be appointed to represent the defendant if the defendant is not
financially able to employ an attorney as provided in K.S.A. 22-4503 et seq. and amendments
thereto. The hearing shall be held within 30 days after the receipt by the court of the chief
medical officer's notice.

(c) At the hearing, the defendant shall be sentenced, committed, granted probation, as-
signed to a community correctional services program, as provided by K.S.A. 75-5291 and
amendments thereto, or discharged as the court deems best under the circumstance. The
time spent in a state or local institution pursuant to a commitment under K.S.A. 22-3430
and amendments thereto shall be credited against any sentence, confinement or imprison-
ment imposed on the defendant.

Sec. 8. K.S.A. 22-3716 is hereby amended to read as follows: 22-3716. (a) At any time
during probation, assignment to a community correctional services program, suspension of
sentence or pursuant to subsection (d) for defendants who committed a crime prior to July
1, 1993, and at any time during which a defendant is serving a nonprison sanction for a
crime committed on or after July 1, 1993, or pursuant to subsection (d), the court may issue
a warrant for the arrest of a defendant for violation of any of the conditions of release or
assignment, a notice to appear to answer to a charge of violation or a violation of the
defendant's nonprison sanction. The notice shall be personally served upon the defendant.
The warrant shall authorize all officers named in the warrant to return the defendant to the
custody of the court or to any certified detention facility designated by the court. Any court
services officer or community correctional services officer may arrest the defendant without
a warrant or may deputize any other officer with power of arrest to do so by giving the
officer a written statement setting forth that the defendant has, in the judgment of the court
services officer or community correctional services officer, violated the conditions of the
defendant's release or a nonprison sanction. The written statement delivered with the de-
fendant by the arresting officer to the official in charge of a county jail or other place of
detention shall be sufficient warrant for the detention of the defendant. After making an
arrest, the court services officer or community correctional services officer shall present to
the detaining authorities a similar statement of the circumstances of violation. Provisions
regarding release on bail of persons charged with a crime shall be applicable to defendants
arrested under these provisions.

(b) Upon arrest and detention pursuant to subsection (a), the court services officer or
community correctional services officer shall immediately notify the court and shall submit
in writing a report showing in what manner the defendant has violated the conditions of
release or assignment or a nonprison sanction. Thereupon, or upon an arrest by warrant as
provided in this section, the court shall cause the defendant to be brought before it without
unnecessary delay for a hearing on the violation charged. The hearing shall be in open court
and the state shall have the burden of establishing the violation. The defendant shall have
the right to be represented by counsel and shall be informed by the judge that, if the
defendant is financially unable to obtain counsel, an attorney will be appointed to represent
the defendant. The defendant shall have the right to present the testimony of witnesses and
other evidence on the defendant's behalf. Relevant written statements made under oath
may be admitted and considered by the court along with other evidence presented at the
hearing. Except as otherwise provided, if the violation is established, the court may continue
or revoke the probation, assignment to a community correctional services program, suspen-
sion of sentence or nonprison sanction and may require the defendant to serve the sentence
imposed, or any lesser sentence, and, if imposition of sentence was suspended, may impose
any sentence which might originally have been imposed. Except as otherwise provided, no
offender for whom a violation of conditions of release or assignment or a nonprison sanction
has been established as provided in this section shall be required to serve any time for the
sentence imposed or which might originally have been imposed in a state facility in the
custody of the secretary of corrections for such violation, unless such person has already at
least one prior assignment to a community correctional services program related to the crime
for which the original sentence was imposed, except these provisions shall not apply to
offenders who violate a condition of release or assignment or a nonprison sanction by com-
mitting a new misdemeanor or felony offense. The court may require an offender for whom
a violation of conditions of release or assignment or a nonprison sanction has been established
as provided in this section to serve any time for the sentence imposed or which might
originally have been imposed in a state facility in the custody of the secretary of corrections
without a prior assignment to a community correctional services program if the court finds
and sets forth with particularity the reasons for finding that the safety of the members of
the public will be jeopardized or that the welfare of the inmate will not be served by such
assignment to a community correctional services program. When a new felony is committed
while the offender is on probation or assignment to a community correctional services pro-
gram, the new sentence shall 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.

(c) A defendant who is on probation, assigned to a community correctional services pro-
gram, under suspension of sentence or serving a nonprison sanction and for whose return
a warrant has been issued by the court shall be considered a fugitive from justice if it is
found that the warrant cannot be served. If it appears that the defendant has violated the
provisions of the defendant's release or assignment or a nonprison sanction, the court shall
determine whether the time from the issuing of the warrant to the date of the defendant's
arrest, or any part of it, shall be counted as time served on probation, assignment to a
community correctional services program, suspended sentence or pursuant to a nonprison
sanction.

(d) The court shall have 30 days following the date probation, assignment to a community
correctional service program, suspension of sentence or a nonprison sanction was to end to
issue a warrant for the arrest or notice to appear for the defendant to answer a charge of a
violation of the conditions of probation, assignment to a community correctional service
program, suspension of sentence or a nonprison sanction.

(e) Notwithstanding the provisions of any other law to the contrary, an offender whose
nonprison sanction is revoked and a term of imprisonment imposed pursuant to either the
sentencing guidelines grid for nondrug or drug crimes shall not serve a period of postrelease
supervision upon the completion of the prison portion of that sentence. The provisions of
this subsection shall not apply to offenders sentenced to a nonprison sanction pursuant to a
dispositional departure, whose offense falls within a border box of either the sentencing
guidelines grid for nondrug or drug crimes, offenders sentenced for a ``sexually violent crime''
as defined by K.S.A. 22-3717, and amendments thereto, or whose nonprison sanction was
revoked as a result of a conviction for a new misdemeanor or felony offense. The provisions
of this subsection shall not apply to offenders who are serving or are to begin serving a
sentence for any other felony offense that is not excluded from postrelease supervision by
this subsection on the effective date of this subsection. The provisions of this subsection shall
be applied retroactively. The department of corrections shall conduct a review of all persons
who are in the custody of the department as a result of only a revocation of a nonprison
sanction. On or before September 1, 2000, the department shall have discharged from post-
release supervision those offenders as required by this subsection.

Sec. 9. K.S.A. 1999 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 sen-
tenced 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) and (E), persons sentenced for
nondrug severity level 1 through 6 4 crimes and drug severity levels 1 ~~through 3~~ and 2
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 (D) and (E), persons sentenced for nondrug
severity levels 5 and 6 crimes and drug severity level 3 crimes must serve 24 months, plus
the amount of good time earned and retained pursuant to K.S.A. 21-4722, and amendments
thereto, on postrelease supervision.

(C) Except as provided in subparagraphs ~~(C) and~~ (D) and (E), persons sentenced for
nondrug severity level 7 through 10 crimes and drug severity level 4 crimes must serve 24
12 months, plus the amount of good time earned and retained pursuant to K.S.A. 21-4722
and amendments thereto, on postrelease supervision.

~~(C)~~ (D) (i) The sentencing judge shall impose the postrelease supervision period provided
in subparagraph (d)(1)(A) or, (d)(1)(B) or (d)(1)(C), 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 im-
posed 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 evalua-
tion 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 corrections
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)~~ (d)(1)(D), 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 postrelease
supervision period upon completion of court ordered programs and completion of the pre-
sumptive postrelease supervision period, as determined by the crime of conviction, pursuant
to subparagraph (d)(1)(A) ~~or (B)~~, (d)(1)(B) or (d)(1)(C). 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)~~ (E) The period of postrelease supervision provided in subparagraphs (A) and (B) may
be reduced by up to 12 months and the period of postrelease supervision provided in sub-
paragraph (C) may be reduced by up to six 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 reg-
ulations adopted by the secretary of corrections.

~~(E)~~ (F) 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 section; 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 supervision
that the parolee or the person on postrelease supervision make progress towards or suc-
cessfully complete the equivalent of a secondary education if the inmate has not previously
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
community;

(4) may order the parolee or person on postrelease supervision to pay the administrative
fee imposed pursuant to K.S.A. 1999 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 un-
workable, 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 super-
vision, 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 restitution
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.

(s) The provisions of subsections (d)(1)(A), (d)(1)(B), (d)(1)(C) and (d)(1)(E) shall be
applied retroactively as provided in subsection (t).

(t) For offenders sentenced prior to the effective date of this act who are eligible for
modification of their postrelease supervision obligation, the department of corrections shall
modify the period of postrelease supervision as provided for by this section for offenders
convicted of severity level 9 and 10 crimes on the sentencing guidelines grid for nondrug
crimes and severity level 4 crimes on the sentencing guidelines grid for drug crimes on or
before September 1, 2000; for offenders convicted of severity level 7 and 8 crimes on the
sentencing guidelines grid for nondrug crimes on or before November 1, 2000; and for
offenders convicted of severity level 5 and 6 crimes on the sentencing guidelines grid for
nondrug crimes and severity level 3 crimes on the sentencing guidelines grid for drug crimes
on or before January 1, 2001.

Sec. 10. K.S.A. 75-52,129 is hereby amended to read as follows: 75-52,129. (a) The sec-
retary of corrections is hereby authorized to negotiate and enter into contracts with Kansas
cities and counties for the placement of inmates, who are classified as medium custody or
any higher custody or security classification, in facilities owned and operated by the cities
and counties. If the secretary of corrections proposes to place any inmates classified as
medium custody or any higher custody classification for confinement in facilities other than
correctional or other institutions or facilities owned and operated by the department of
corrections or any other state agency, the secretary of corrections shall give first consider-
ation to entering into contracts with Kansas cities and counties under this section before
attempting to place any such inmate for confinement at any location outside the state of
Kansas if the facilities to be provided under such contracts are substantially equal to facilities
at locations outside the state of Kansas and if arrangements can be made in a timely manner.
Except as provided in subsection (b), the provisions of this section and any contract or
preliminary letter of commitment entered into pursuant to this section shall not apply to
any minimum custody or community custody status inmates, or any other custody or security
classification lower than medium custody, or to any inmate who may be placed in a work
release or prerelease program, center or facility by the secretary of corrections, who is
eligible for parole or who is placed pursuant to the interstate corrections compact. Contracts
entered into pursuant to this section shall not be subject to competitive bid requirements
under K.S.A. 75-3739 and amendments thereto.

(b) The secretary shall not enter into any contract as provided in subsection (a) with any
city or county of this state for the placement of inmates that does not provide that such city
or county shall provide and maintain appropriate and recognized standards of safety, health
and security.

Sec. 11. K.S.A. 1999 Supp. 75-5291 is hereby amended to read as follows: 75-5291. (a)
(1) The secretary of corrections may make grants to counties for the development, imple-
mentation, operation and improvement of community correctional services including, but
not limited to, restitution programs, victim services programs, preventive or diversionary
correctional programs, community corrections centers and facilities for the detention or
confinement, care or treatment of ~~adults charged with or convicted of crime~~ offenders as
provided in this section except that no community corrections funds shall be expended by
the secretary for the purpose of establishing or operating a conservation camp as provided
by K.S.A. 75-52,127 and amendments thereto.

(2) Placement of offenders in community correctional services programs by the court shall
be limited to placement of adult offenders, convicted of a felony offense:

(A) 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. In addition, the court may place in a community correctional
services program adult offenders, convicted of a felony offense, whose offense is classified in
grid blocks 6-H, 6-I, 7-C, 7-D, 7-E, 7-F, 7-G, 7-H or 7-I of the sentencing guidelines grid
for nondrug crimes;

(B) whose severity level and criminal history score designate a presumptive prison sen-
tence on either sentencing guidelines grid but receive a nonprison sentence as a result of
departure;

(C) all offenders convicted of an offense which satisfies the definition of offender pursuant
to K.S.A. 22-4902, and amendments thereto, and which is classified as a severity level 7 or
higher offense and who receive a nonprison sentence, regardless of the manner in which the
sentence is imposed;

(D) any offender for whom a violation of conditions of release or assignment or a non-
prison sanction has been established as provided in K.S.A. 22-3716, and amendments thereto,
prior to revocation resulting in the offender being required to serve any time for the sentence
imposed or which might originally have been imposed in a state facility in the custody of
the secretary of corrections;

(E) any offender who is determined to be ''high risk or needs, or both`` by the use of a
statewide, mandatory, standardized risk assessment tool or instrument validated for com-
munity correctional placements; or

(F) placed in community correctional services programs as a condition of supervision
following the successful completion of a conservation camp program.

(3) Nothing in this act shall prohibit a community correctional services program from
providing services to juvenile offenders upon approval by the local community corrections
advisory board. Grants from community corrections funds administered by the secretary of
corrections shall not be expended for such services.

(4) The court may require an offender for whom a violation of conditions of release or
assignment or a nonprison sanction has been established, as provided in K.S.A. 22-3716,
and amendments thereto, to serve any time for the sentence imposed or which might origi-
nally have been imposed in a state facility in the custody of the secretary of corrections
without a prior assignment to a community correctional services program if the court finds
and sets forth with particularity the reasons for finding that the safety of the members of
the public will be jeopardized or that the welfare of the inmate will not be served by such
assignment to a community correctional services program.

(b) (1) In order to establish a mechanism for community correctional services to partic-
ipate in the department of corrections annual budget planning process, the secretary of
corrections shall establish a community corrections advisory committee to identify new or
enhanced correctional or treatment interventions designed to divert offenders from prison.

(2) The secretary shall appoint one member from the southeast community corrections
association region, one member from the northeast community corrections association re-
gion, one member from the central community corrections association region and one mem-
ber from the western community corrections association region. The deputy secretary of
community corrections and field services shall designate two members from the state at
large. The secretary shall have final appointment approval of the members designated by
the deputy secretary. The committee shall reflect the diversity of community correctional
services with respect to geographical location and average daily population of offenders
under supervision.

(3) Each member shall be appointed for a term of three years, except of the initial
appointments, such terms shall be staggered as determined by the secretary. Members shall
be eligible for reappointment.

(4) The committee, in collaboration with the deputy secretary of community corrections
and field services or the deputy secretary's designee, shall routinely examine and report to
the secretary on the following issues:

(A) Efficiencies in the delivery of field supervision services;

(B) ~~offender assignment decisions;~~

~~(C)~~ effectiveness and enhancement of existing interventions; and

~~(D)~~ (C) identification of new interventions.

(5) The committee's report concerning enhanced or new interventions shall address:

(A) ~~A target population;~~

~~(B)~~ measurable goals and objectives;

~~(C)~~ (B) projected costs;

~~(D)~~ (C) the impact on public safety; and

~~(E)~~ (D) the evaluation process.

(6) The committee shall submit its report to the secretary annually on or before July 15
in order for the enhanced or new interventions to be considered for inclusion within the
department of corrections budget request for community correctional services or in the
department's enhanced services budget request for the subsequent fiscal year.

Sec. 12. (a) For the fiscal years ending June 30, 2001, and June 30, 2002, appropriations
are hereby made, restrictions and limitations are hereby imposed, and transfers, capital
improvement projects, 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) The appropriations made by this act shall not be subject to the provisions of K.S.A.
46-155 and amendments thereto.

Sec. 13.

DEPARTMENT OF CORRECTIONS (a) There is appropriated for the above agency from the state general fund for the fiscal
year ending June 30, 2001, the following:

Day reporting center state match

$190,000

Provided, That all expenditures from the day reporting center state match account shall be
made for the purpose of providing the required state match for receipt of federal funds for
day reporting centers: Provided further, That such expenditures shall be for operation of
day reporting centers for one-half of fiscal year 2001: And provided further, That all ex-
penditures from the day reporting center state match account shall be made pursuant to a
contract which is hereby authorized to be entered into by the secretary of corrections with
a private entity for operation of such day reporting centers: And provided further, That such
contract shall be designed to use day reporting centers to divert offenders who would oth-
erwise occupy prison space making additional prison space available for violent offenders.

Community corrections

$879,484

Provided, That, notwithstanding the provisions of K.S.A. 75-52,103, and amendments
thereto, and in addition to the other purposes for which expenditures may be made by the
above agency from the community corrections account of the state general fund from mon-
eys appropriated by this or other appropriation act of the 2000 regular session of the leg-
islature for fiscal year 2001, expenditures shall be made by the department of corrections
from the community corrections account for fiscal year 2001 to distribute all moneys ap-
propriated in such account to community corrections service providers to ensure all funds
appropriated for such purpose for fiscal year 2001 are expended to support community
corrections programs as authorized by law: Provided, however, That the department of
corrections shall not reclaim any unexpended community corrections grant funds that are
distributed for fiscal year 2001, but shall expend all community corrections grant funds to
maximize the use of adult intensive supervised probation for offenders diverted from prison.

Construction of Ellsworth correctional facility housing unit training centerand warehouse	$617,752
El Dorado correctional facility--RDU housing	$253,086

Provided, That no expenditures shall be made from the El Dorado correctional facility--
RDU housing account for the fiscal year ending June 30, 2001, without specific authorization
by the director of the budget.

(b) In addition to the other purposes for which expenditures may be made by the de-
partment of corrections from the violent offender incarceration and truth in sentencing
incentive grants--federal fund for fiscal year 2001 as authorized by section 81(c) of 2000
House Substitute for Senate Bill No. 326 or by other appropriation act of the 2000 regular
session of the legislature, expenditures may be made by the department of corrections from
the violent offender incarceration and truth in sentencing incentive grants--federal fund
for fiscal year 2001 for the following capital improvement project or projects, subject to the
expenditure limitation prescribed therefor:

Construction of Ellsworth correctional facility housing unit training centerand warehouse

$5,559,765

(c) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year ending June 30, 2001, 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:

Lansing and Topeka correctional facilities capital improvements revenuefund

No limit

Provided, That the department of corrections may make expenditures from the Lansing and
Topeka correctional facilities capital improvements revenue fund for the capital improve-
ment projects to (1) renovate and equip J cellhouse at the Topeka correctional facility; (2)
construct and equip a laundry building and a training building at the Topeka correctional
facility; and (3) reconstruct and equip the vocational education, maintenance and correc-
tional industry space damaged in the fire of November, 1999: Provided further, That ex-
penditures for Lansing fire damage repair shall not exceed $1,100,000: And provided fur-
ther, That such capital improvement projects are hereby approved for the department of
corrections 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: Provided, however, That expenditures from this fund for
such capital improvement projects shall not exceed $4,400,000, plus all amounts required
for cost of bond issuance, cost of interest on the bonds during the projects and required
reserves for the payment of principal and interest on the bonds: 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.

(d) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year ending June 30, 2002, 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:

Violent offender incarceration and truth in sentencing incentive grants-- federal fund

No limit

Provided, That the department of corrections shall make expenditures from the violent
offender incarceration and truth in sentencing incentive grants--federal fund for state fiscal
year 2002 for operation of day reporting centers: Provided further, That all such expendi-
tures for state fiscal year 2002 shall be made pursuant to a contract which is hereby au-
thorized to be entered into by the secretary of corrections with a private entity for operation
of such day reporting centers: And provided further, That such contract shall be designed
to use day reporting centers to divert offenders who would otherwise occupy prison space
making additional prison space available for violent offenders: And provided further, That
the approved budget for state fiscal year 2002 for this fund, except as provided for operating
expenditures for such day reporting centers, shall include the total amount of all violent
offender incarceration and truth in sentencing incentive grant awards received by the above
agency during the federal fiscal year 2000: Provided, however, That expenditures from the
violent offenders incarceration and truth in sentencing incentive grants--federal fund for
state fiscal year 2002 for operating expenditures for such day reporting centers shall not
exceed $3,800,000.

(e) There is appropriated for the above agency from the correctional institutions building
fund for the fiscal year ending June 30, 2001, for the capital improvement project or projects
specified as follows:

Chemical dependency unit renovation or new construction

$300,000

Provided, That the secretary of corrections is hereby authorized to transfer moneys during
fiscal year 2001 from the capital improvements--rehabilitation, remodeling, renovation and
repair of correctional institutions account of the correctional institutions building fund to
an account or accounts of the correctional institutions building fund of any institution or
facility under the jurisdiction of the secretary of corrections to be expended during fiscal
year 2001 by the institution or facility for capital improvement projects, including security
improvement projects and hazardous waste cleanup at Lansing correctional facility, ap-
proved by the secretary of corrections.

(f) In addition to the other purposes for which expenditures may be made by the de-
partment of corrections from the violent offender incarceration and truth in sentencing
incentive grants--federal fund for fiscal year 2001 as authorized by this or any other ap-
propriation act of the 2000 regular session of the legislature, expenditures may be made by
the above agency from the violent offender incarceration and the truth in sentencing in-
centive grants--federal fund for operation of day reporting centers for one-half of fiscal
year 2001: Provided further, That all such expenditures shall be made pursuant to a contract
which is hereby authorized to be entered into by the secretary of corrections with a private
entity for operation of such day reporting centers: And provided further, That such contract
shall be designed to use day reporting centers to divert offenders who would otherwise
occupy prison space making additional prison space available for violent offenders: And
provided further, That expenditures from the violent offenders incarceration and truth in
sentencing incentive grants--federal fund for fiscal year 2001 for operation of such day
reporting centers shall not exceed $1,710,000.

(g) Notwithstanding the provisions of K.S.A. 75-5282, and amendments thereto, and in
addition to the other purposes for which expenditures may be made by the above agency
from the correctional industries fund as authorized by this or other appropriation act of the
2000 regular session of the legislature, expenditures may be made by the department of
corrections from the correctional industries fund for fiscal year 2001 for community cor-
rections conditional violator grants designed to divert probation violators from occupying
prison bed space reducing the prison population: Provided, That expenditures for such
purpose from the correctional industries fund for fiscal year 2001 shall not exceed $750,000.

(h) On July 1, 2000, the position limitation established by section 69(a) of the 2000 House
Substitute for Senate Bill No. 326 for the department of corrections is hereby increased
from 3,063.0 to 3,123.5.

Sec. 14. (a) During the fiscal years ending June 30, 2000, and June 30, 2001, notwith-
standing the provisions of K.S.A. 74-8905 and amendments thereto, no bonds shall be issued
by the Kansas development finance authority for any capital improvement project for the
construction or expansion of any prison or any other correctional facility for the department
of corrections unless such capital improvement project has been specifically approved by
act of the legislature for the department of corrections 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 for such capital
improvement project.

(b) During the fiscal years ending June 30, 2000, and June 30, 2001, notwithstanding the
provisions of K.S.A. 74-8905 and amendments thereto, the state finance council shall not
approve any capital improvement project for the construction or expansion of any prison or
any other correctional facility for the department of corrections for the purposes of subsec-
tion (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 for
any such capital improvement project.

Sec. 15. K.S.A. 21-4602, 21-4606b, 22-3431, 22-3716 and 75-52,129 and K.S.A. 1999
Supp. 21-4603, 21-4603d, 21-4610, 21-4611, 22-3717 and 75-5291 are hereby repealed.

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

In the title, on page 1, by striking all in lines 12 through 16 and inserting new material
to read as follows:

``AN ACT concerning crimes, criminal procedure and punishment; relating to probation and
suspension of sentence, jail confinement; community corrections; conditional violators, dis-
positions; postrelease supervision; placement of inmates and offenders; revocation of non-
prison sanction for certain offenders; making and concerning appropriations for the fiscal
years ending June 30, 2001, and June 30, 2002, for the department of corrections; amending
K.S.A. 21-4602, 21-4606b, 22-3431, 22-3716 and 75-52,129 and K.S.A. 1999 Supp. 21-4603,
21-4603d, 21-4610, 21-4611, 22-3717 and 75-5291 and repealing the existing sections.'';

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

David Adkins

Michael R. O'Neal

Melvin Neufeld

Ed McKechnie

Janice L. Pauls
Conferees on the part of House

Dave Kerr

Marge Petty

Alicia Salisbury

John Vratil

Greta Goodwin
Conferees on part of Senate

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

On roll call, the vote was: Yeas 69; Nays 54; Present but not voting: 0; Absent or not
voting: 2.

Yeas: Aday, Adkins, Allen, Aurand, Ballard, Beggs, Bethell, Boston, Carmody, Compton,
Cox, Dahl, Dreher, Empson, Farmer, Feuerborn, Flora, Flower, Freeborn, Garner, Ger-
inger, Gregory, Hayzlett, Holmes, Horst, Huff, Humerickhouse, Hutchins, Jennison, John-
son, Klein, Phil Kline, Krehbiel, Landwehr, Lane, Light, Lightner, Lloyd, Loyd, Mason,
McClure, McKechnie, McKinney, Minor, Myers, Neufeld, Nichols, O'Connor, O'Neal, Pal-
mer, Pauls, J. Peterson, Pottorff, Reinhardt, Ruff, Schwartz, Showalter, Shultz, Sloan, Stone,
Storm, Tanner, Thimesch, Tomlinson, Vining, Wagle, Weber, Wells, Wilk.

Nays: Alldritt, Ballou, Barnes, Benlon, Burroughs, Campbell, Crow, Dean, Edmonds,
Faber, Findley, Flaharty, Gatewood, Gilbert, Glasscock, Grant, Haley, Helgerson, Hender-
son, Henry, Hermes, Howell, Jenkins, Kirk, Phill Kline, Kuether, Larkin, M. Long, P. Long,
Mayans, Mays, McCreary, Merrick, Mollenkamp, Jim Morrison, Judy Morrison, O'Brien,
Osborne, E. Peterson, Phelps, Powell, Powers, Ray, Reardon, Rehorn, Sharp, Shriver, Span-
gler, Swenson, Tedder, Toelkes, Toplikar, Vickrey, Weiland.

Present but not voting: None.

Absent or not voting: Johnston, Welshimer.

EXPLANATION OF VOTE Mr. Speaker: While I vote no on H. Sub. for SB 323, I do support some provisions of
this bill, including the construction of new beds at the Ellsworth Correctional Facility.

I vote against this bill because it reduces the time of postrelease supervision from 36 to
24 months for criminals who are convicted of some dangerous crimes; this reduction can
be further reduced 12 months for good behavior. The crimes that fall under this reduction
include child abuse, aggravated sexual battery, and aggravated assault on a law enforcement
officer.--Kent Glasscock

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 481, 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 1, in line 28, by striking ``$36'' and inserting ``$35''; in line 35, by striking ``$36''
and inserting ``$35'';

On page 3, in line 4, by striking ``$36'' and inserting ``$35''; in line 7, by striking ``$18''
and inserting ``$20''; in line 20, by striking ``$18'' and inserting ``$20'';

On page 4, in line 18, by striking ``$36'' and inserting ``$35'';

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

David Adkins

Melvin J. Neufeld

Bill Reardon
Conferees on the part of House

Dave Kerr

Janice Hardenburger

U.L. Gooch
Conferees on part of Senate

On motion of Rep. Adkins, the conference committee report on SB 481 was adopted.

On roll call, the vote was: Yeas 98; Nays 26; Present but not voting: 0; Absent or not
voting: 1.

Yeas: Aday, Adkins, Allen, Aurand, Ballard, Barnes, Beggs, Benlon, Bethell, Boston, Bur-
roughs, Compton, Cox, Crow, Dean, Dreher, Empson, Farmer, Feuerborn, Findley, Fla-
harty, Flora, Flower, Freeborn, Garner, Gatewood, Geringer, Gilbert, Glasscock, Grant,
Haley, Hayzlett, Helgerson, Henderson, Henry, Holmes, Horst, Huff, Humerickhouse, Jen-
kins, Jennison, Johnson, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr,
Lane, Light, Lightner, Lloyd, M. Long, Loyd, Mason, McClure, McCreary, McKechnie,
McKinney, Merrick, Minor, Judy Morrison, Myers, Nichols, O'Brien, O'Neal, Palmer, Pauls,
E. Peterson, J. Peterson, Phelps, Pottorff, Powers, Ray, Reardon, Rehorn, Reinhardt, Ruff,
Schwartz, Showalter, Shriver, Shultz, Sloan, Stone, Storm, Swenson, Tanner, Tedder, Thi-
mesch, Toelkes, Tomlinson, Wagle, Weber, Weiland, Wells, Welshimer, Wilk.

Nays: Alldritt, Ballou, Campbell, Carmody, Dahl, Edmonds, Faber, Gregory, Hermes,
Howell, Hutchins, Larkin, P. Long, Mayans, Mays, Mollenkamp, Jim Morrison, Neufeld,
O'Connor, Osborne, Powell, Sharp, Spangler, Toplikar, Vickrey, Vining.

Present but not voting: None.

Absent or not voting: Johnston.

CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 447, 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 2, in line 19, after ``of'' by inserting ``providing the''; also in line 19, after ``copying''
by inserting ``of'';

\ 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

On motion of Rep. O'Neal, the conference committee report on SB 447 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, Henry, Hermes, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins,
Jenkins, Jennison, Johnson, 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'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: Johnston.

REPORT OF STANDING COMMITTEE
Your Committee on Calendar and Printing recommends on requests for resolutions
and certificates that

Request No. 229, by Representative Hermes, commending Sharon Cole, retiring after
teaching second grade in USD 437 for 31 years;

Request No. 230, by Representative Hermes, congratulating St. Marys Lady Bears Bas-
ketball Team, Class 3A Champions for 2000;

Request No. 231, by Representative McClure, congratulating Tipton High School Girls'
Basketball Team, Class 1A State Champions;

Request No. 232, by Representative Sloan, congratulating Anna and Harvey Houk on
75 years of marriage;

Request No. 233, by Representative Dahl, honoring Bud and Roseva McLinden on 60
years of marriage;

Request No. 234, by Representative Dahl, honoring Milton and Donna Kaiser on 50
years of marriage;

Request No. 235, by Representative Dahl, honoring Lloyd and Marlene Schroeder on
50 years of marriage;

Request No. 236, by Representative Dahl, honoring Charles and JoAnn Kjellin on 50
years of marriage;

Request No. 237, by Representative Schwartz, congratulating Russ and Rachel Sanner
on 50 years of marriage;

Request No. 238, by Representative Dahl, honoring Joseph and Phyllis Ragole on 50
years of marriage;

Request No. 239, by Representative Dahl, honoring Dean and Edie Ollenberger on 50
years of marriage;

Request No. 240, by Representative Jennison, congratulating Bill and Fern Traver on
50 years of marriage;

Request No. 241, by Representative Schwartz, congratulating Leonard and Lorene Ber-
ger on 50 years of marriage;

Request No. 242, by Representative Jennison, congratulating Matthew Grove for com-
pleting the National Advanced Leadership Training with the Boy Scouts of America, Wood
Badge;

Request No. 243, by Representative Jennison, congratulating Garden City Community
College Forensics and Debate Team for winning six trophies in the 2000 Phi Rho Pi national
competition;

Request No. 244, by Representative McKinney, commending Pratt Regional Living
Center, honored with a Public Service Award for service to the elderly;

Request No. 245, by Representative Garner, commending Don Lind for years of service
to the state and community;

Request No. 246, by Representative Garner, commending Cliff Bale for years of service
to the state and community;

Request No. 247, by Representative Garner, congratulating Amanda Morgan, named to
the third team All USA Today Academic Team;

Request No. 248, by Representative Garner, congratulating Jessica Neely, named to the
second team All USA Today Academic Team;

Request No. 249, by Representative Dreher, congratulating Minah Edwards on her
100th birthday;

Request No. 250, by Representative Dreher, congratulating Robert and Charlotte Swift
on 50 years of marriage;

Request No. 251, by Representative Dreher, congratulating Sam and Donna Samsel on
50 years of marriage;

Request No. 252, by Representatives Judy Morrison and Haley, in memory of the Rev.
Thurman Mitchell, pastor of Victory Temple Christian Life Center;

Request No. 253, by Representative P. Long, commending Chris Shore, for willingness
to serve on the Governor's Mental Health Planning Council;

Request No. 254, by Representative P. Long, congratulating Lucas Short for his work
as an accomplished and published poet;

Request No. 255, by Representative E. Peterson, congratulating Good Samaritan Center
of Dodge City for receiving a Best Practices Award from Kansas Association of Homes and
Services for the Aging;

Request No. 256, by Representative E. Peterson, congratulating Trinity Association of
Dodge City for receiving a Best Practices Award from Kansas Association of Homes and
Services for the Aging;

Request No. 257, by Representative E. Peterson, congratulating Hill Top House of
Bucklin for receiving a Best Practices Award from Kansas Association of Homes and Services
for the Aging;

Request No. 258, by Representative E. Peterson, congratulating Manor of the Plains
Nursing Home in Dodge City for receiving a Best Practices Award from Kansas Association
of Homes and Services for the Aging;

Request No. 259, by Representative Hermes, congratulating Wilbur Stum, Sr., for 40
years as a volunteer fireman;

Request No. 260, by Representative Hermes, congratulating Jeneka Joyce, named to
the third team Parade All-America Team;

Request No. 261, by Representative Hayzlett, congratulating Joseph Robert Jennings
on achieving Eagle Scout;

Request No. 262, by Representative Hermes, congratulating Rita Carter, retiring from
USD 437 after teaching since 1978;

Request No. 263, by Representative Hermes, congratulating Joy Newkirk, retiring from
USD 437 after teaching since 1987;

Request No. 264, by Representative Hermes, congratulating Carlene W. Hutcheson,
retiring from USD 437 after teaching since 1968;

Request No. 265, by Representative Shultz, congratulating Dr. Marlin Berry, in rec-
ognition of his extraordinary service to the students of the Smoky Valley Public School
District;

Request No. 266, by Representative Shultz, congratulating Doreen Anderson, in rec-
ognition of her valuable service to the City of Lindsborg as Director of the Chamber of
Commerce;

Request No. 267, by Representative Glasscock, commending Matt Corbin, Sarah Ste-
phens and Amanda Hickman for outstanding contributions during the 2000 legislative ses-
sion;

Request No. 268, by Representative Henderson, congratulating Ryan Jared Robinson
Harrison on graduation from Piper High School;

Request No. 269, by Representative Henderson, congratulating Keiyna Jannelle Porter
on graduation from Wyandotte High School;

Request No. 270, by Representative Henderson, congratulating Herbert Brandan Harris
on graduation from F.L. Schlagle High School;

Request No. 271, by Representatives Weber, Aday, Lloyd and Freeborn, congratulating
Dickinson County, honored with Year 2000 Community Achievement Award by the Kansas
Department of Commerce and Housing;

Request No. 272, by Representative Powell, congratulating Mrs. Maxwell's first grade
class at Central Christian Academy for their visit to the state capitol;

Request No. 273, by Representative Jennison, congratulating Ted Fisher on his retire-
ment as House Sergeant-at-Arms;

Request No. 274, by Representative Phelps, congratulating Diane Mason, Hays High
School English teacher, for being selected as the 1999-2000 Hays-NEA Master Teacher;

Request No. 275, by Representative Phelps, congratulating Sue Boldra, Hays High
School Social Studies teacher, for being named 1999 Outstanding Teacher of American
History in Kansas;

Request No. 276, by Representative Phelps, congratulating Linda Lang, Lincoln and
Washington elementary teacher, named the 1999 Kansas District IV Outstanding Elemen-
tary Music Teacher of the year by the Kansas Music Educators Association;

Request No. 277, by Representative Phelps, congratulating Bob Kuhn on being named
the Kansas Wrestling Officials' Association Wrestling Coach of the Year, 1999;

Request No. 278, by Representative Phelps, congratulating Kent Teeter, Hays High
School Physical Education teacher, on being named Kansas Boys' Track Coach of the Year
for 1999;

Request No. 279, by Representative Palmer, commending Julie Elizabeth Robinett,
legislative intern during the 2000 session;

be approved and the Chief Clerk of the House be directed to order the printing of said
certificates and order drafting of said resolutions.

On motion of Rep. Glasscock, the committee report was adopted.

REPORT ON ENGROSSED BILLS
HB 3005 reported correctly engrossed April 28, 2000.

REPORT ON ENROLLED BILLS
S. Sub. for HB 2357; HB 2570, 2700, 2780, 2855 reported correctly enrolled, properly
signed and presented to the governor on April 28, 2000.

REPORT ON ENROLLED RESOLUTIONS
HR 6019 reported correctly enrolled and properly signed on April 28, 2000.

On motion of Rep. Glasscock, the House adjourned until 10:00 a.m., Saturday, April 29,
2000.

CHARLENE SWANSON, Journal Clerk.

JANET E. JONES, Chief Clerk.