H Sub. for SB 112--
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Session of 1997
House Substitute for SENATE BILL No. 112
By Committee on Governmental Organization and Elections
3-24
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9 AN ACT concerning campaign finance; changing the name of the Kansas 10 commission on governmental standards and conduct; limiting certain 11 contributions; imposing certain penalties; amending K.S.A. 25-4119a, 12 25-4119e, 25-4153a, 25-4180, 46-246a, 46-253, 46-280 and 46-288 and 13 K.S.A. 1996 Supp. 25-4119f, 25-4143, 25-4145, 25-4152, 25-4181, 25- 14 4186, 46-236, 46-237, 46-265, 75-4302a and 75-4303a and repealing 15 the existing sections. 16 17 Be it enacted by the Legislature of the State of Kansas: 18 Section 1. K.S.A. 25-4119a is hereby amended to read as follows: 25- 19 4119a. (a) There is hereby created the Kansas commission on govern- 20 mental standards and conduct. 21 (b) On July 1, 1997, the Kansas commission on governmental stan- 22 dards and conduct is hereby redesignated as the governmental ethics com- 23 mission. On and after July 1, 1997, whenever the Kansas commission on 24 governmental standards and conduct, or words of like effect, is referred 25 to or designated by a statute, contract or other document, such reference 26 or designation shall be deemed to apply to the governmental ethics com- 27 mission. Nothing in this act shall be construed as abolishing and rees- 28 [chtablishing the commission. The commission shall consist of nine members 29 of whom two shall be appointed by the governor, one by the president 30 of the senate, one by the speaker of the house of representatives, one by 31 the minority leader of the house of representatives, one by the minority 32 leader of the senate, one by the chief justice of the supreme court, one 33 by the attorney general and one by the secretary of state. The terms of 34 such members shall be as follows: The member appointed by the gov- 35 ernor serving on the effective date of this act and the members appointed 36 by the speaker of the house of representatives and the president of the 37 senate shall serve until January 31, 1991; the additional member ap- 38 pointed by the governor and the members appointed by the attorney 39 general and the secretary of state shall serve until January 31, 1992; the 40 members appointed by the minority leader of the house of representatives 41 and by the minority leader of the senate shall serve until January 31, 1993; 42 and the member appointed by the chief justice of the supreme court shall 43 serve until January 31, 1994. Nothing in this act shall be construed as H Sub. for SB 112
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 1  affecting the terms of members serving on July 1, 1997. Not more than
 2  five members of the commission shall be members of the same political
 3  party and the two members appointed by the governor shall not be mem-
 4  bers of the same political party.
 5    (b) (c)  The terms of all subsequently appointed members shall be two
 6  years commencing on February 1 of the appropriate years. Vacancies
 7  occurring on the commission shall be filled for the unexpired term by the
 8  same appointing officer as made the original appointment. Members shall
 9  serve until their successors are appointed and qualified. The governor
10  shall designate one of the members appointed by the governor to be the
11  chairperson of the commission. A majority vote of five members of the
12  commission shall be required for any action of the commission. The com-
13  mission may adopt rules to govern its proceedings and may provide for
14  such officers other than the chairperson as it may determine. The com-
15  mission shall meet at least once each quarter, and also shall meet on call
16  of its chairperson or any four members of the commission. Members of
17  the commission attending meetings of such commission, or attending a
18  subcommittee meeting thereof authorized by such commission, shall be
19  paid compensation, subsistence allowances, mileage and other expenses
20  as provided in subsections (a) to (d), inclusive, of K.S.A. 75-3223, and
21  amendments thereto. The commission shall appoint an executive director
22  who shall be in the unclassified service and receive compensation fixed
23  by the commission, in accordance with appropriation acts of the legisla-
24  ture, subject to approval by the governor. The commission may employ
25  such other staff and attorneys as it determines, within amounts appro-
26  priated to the commission, all of whom shall be in the unclassified service
27  and shall receive compensation fixed by the commission and not subject
28  to approval by the governor.
29    (c) (d)  The commission may adopt rules and regulations for the ad-
30  ministration of the campaign finance act. Subject to K.S.A. 25-4178, and
31  amendments thereto, rules and regulations adopted by the commission
32  created prior to this act shall continue in force and effect and shall be
33  deemed to be the rules and regulations of the commission created by this
34  section of this enactment, until revised, amended, repealed or nullified
35  pursuant to law. All rules and regulations of the commission shall be
36  subject to the provisions of article 4 of chapter 77 of Kansas Statutes
37  Annotated. The commission shall continue to administer all of the acts
38  administered by the commission to which it is successor.
39    (d) (e)  The commission may provide copies of opinions, informational
40  materials compiled and published by the commission and public records
41  filed in the office of the commission to persons requesting the same and
42  may adopt rules and regulations fixing reasonable fees therefor. All fees
43  collected by the commission under the provisions of this subsection shall
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 1  be paid to the state treasurer who shall deposit the same in the state
 2  treasury to the credit of the Kansas governmental ethics commission on
 3  governmental standards and conduct fee fund.
 4    (e) (f)  The commission shall submit an annual report and recom-
 5  mendations in relation to all acts administered by the commission to the
 6  governor and to the legislative coordinating council on or before Decem-
 7  ber 1 of each year. The legislative coordinating council shall transmit such
 8  report and recommendations to the legislature.
 9    (f) (g)  Whenever the public disclosure commission Kansas commis-
10  sion on governmental standards and conduct, or words of like effect, is
11  referred to or designated by a statute, contract or other document, such
12  reference or designation shall be deemed to apply to the Kansas com-
13  mission on governmental standards and conduct created by this section
14  ethics commission.
15    Sec. 2.  K.S.A. 25-4119e is hereby amended to read as follows: 25-
16  4119e. (a) There is hereby established in the state treasury the Kansas
17  governmental ethics commission on governmental standards and conduct
18  fee fund. All moneys credited to such fund shall be used for the operations
19  of the commission in the performance of powers, duties and functions
20  prescribed by law. All expenditures from such fund shall be made in
21  accordance with the provisions of appropriation acts and upon warrants
22  of the director of accounts and reports issued pursuant to vouchers ap-
23  proved by the chairperson of the commission or the chairperson's des-
24  ignee.
25    (b)  The director of accounts and reports is hereby directed to transfer
26  all moneys in the Kansas commission on governmental standards and
27  conduct fee fund to the governmental ethics commission fee fund estab-
28  lished pursuant to subsection (a). All liabilities of the Kansas commission
29  on governmental standards and conduct fee fund existing prior to July 1,
30  1997, are hereby imposed on the governmental ethics commission fee fund
31  established pursuant to subsection (a). The Kansas commission on gov-
32  ernmental standards and conduct fee fund is hereby abolished.
33    Sec. 3.  K.S.A. 1996 Supp. 25-4119f is hereby amended to read as
34  follows: 25-4119f. (a) In addition to any other fee required by law, every
35  person becoming a candidate for the following offices shall pay a fee at
36  the time of filing for such office in the amount prescribed by this section:
37       (1)  Governor and lieutenant governor                                                     $400;
38       (2)  state offices elected by statewide election, other than the governor and lieutenant governor
     $400;
39       (3)  state senator, state representative, state board of education, district attorney, board of public
     utilities of the city of Kansas City and elected county offices          $30;
40  and
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 1       (4)  members of boards of education of unified school districts having 35,000 or more pupils regularly
     enrolled in the preceding school year, members of governing bodies of cities of the first class and judges of the district
     court in judicial districts in which judges are elected          $30.
 2    (b)  The secretary of state shall remit all fees received by that office
 3  to the state treasurer. County election officers receiving fees in accord-
 4  [chance with this section shall remit such fees to the county treasurer of the
 5  county who shall quarterly remit the same to the state treasurer. Upon
 6  receipt of such remittance, the state treasurer shall deposit the entire
 7  amount in the state treasury to the credit of the Kansas governmental
 8  ethics commission on governmental standards and conduct fee fund.
 9    Sec. 4.  K.S.A. 1996 Supp. 25-4143 is hereby amended to read as
10  follows: 25-4143. As used in the campaign finance act, unless the context
11  otherwise requires:
12    (a)  ``Candidate'' means an individual who: (1) Appoints a treasurer or
13  a candidate committee,;
14    (2)  makes a public announcement of intention to seek nomination or
15  election to state or local office,;
16    (3)  makes any expenditure or accepts any contribution for the pur-
17  pose of influencing such person's nomination or election to any state or
18  local office,; or
19    (4)  files a declaration or petition to become a candidate for state or
20  local office.
21    (b)  ``Candidate committee'' means a committee appointed by a can-
22  didate to receive contributions and make expenditures for the candidate.
23    (c)  ``Commission'' means the Kansas governmental ethics commission
24  on governmental standards and conduct created by K.S.A. 25-4119a and
25  amendments thereto.
26    (d) (1)  ``Contribution'' means:
27    (A)  Any advance, conveyance, deposit, distribution, gift, loan or pay-
28  ment of money or any other thing of value made for the purpose of
29  influencing the nomination or election of any individual to state or local
30  office;
31    (B)  a transfer of funds between any two or more candidate commit-
32  tees, party committees or political committees;
33    (C)  the payment, by any person other than a candidate, candidate
34  committee, party committee or political committee, of compensation to
35  an individual for the personal services rendered without charge to or for
36  a candidate's campaign or to or for any such committee;
37    (D)  the purchase of tickets or admissions to, or advertisements in
38  journals or programs for, testimonial events;
39    (E)  a mailing of materials designed to influence the nomination or
40  election of a candidate, which is made and paid for by a party committee
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 1  with the consent of such candidate.
 2    (2)  ``Contribution'' does not include:
 3    (A)  The value of volunteer services provided without compensation;
 4    (B)  costs to a volunteer related to the rendering of volunteer services
 5  not exceeding a fair market value of $50 during an allocable election
 6  period as provided in K.S.A. 25-4149, and amendments thereto;
 7    (C)  payment by a candidate or candidate's spouse for personal meals,
 8  lodging and travel by personal automobile of the candidate or candidate's
 9  spouse while campaigning;
10    (D)  the value of goods donated to events such as testimonial events,
11  bake sales, garage sales and auctions by any person not exceeding a fair
12  market value of $50 per event.
13    (e)  ``Election'' means:
14    (1)  A primary or general election for state or local office; and
15    (2)  a convention or caucus of a political party held to nominate a
16  candidate for state or local office.
17    (f) (1)  ``Expenditure'' means:
18    (A)  Any purchase, payment, distribution, loan, advance, deposit or
19  gift of money or any other thing of value made for the purpose of influ-
20  encing the nomination or election of any individual to state or local office;
21    (B)  any contract to make an expenditure;
22    (C)  a transfer of funds between any two or more candidate commit-
23  tees, party committees or political committees; or
24    (D)  payment of a candidate's filing fees.
25    (2)  ``Expenditure'' does not include:
26    (A)  The value of volunteer services provided without compensation;
27    (B)  costs to a volunteer incidental to the rendering of volunteer serv-
28  ices not exceeding a fair market value of $50 during an allocable election
29  period as provided in K.S.A. 25-4149, and amendments thereto;
30    (C)  payment by a candidate or candidate's spouse for personal meals,
31  lodging and travel by personal automobile of the candidate or candidate's
32  spouse while campaigning or payment of such costs by the treasurer of a
33  candidate or candidate committee;
34    (D)  the value of goods donated to events such as testimonial events,
35  bake sales, garage sales and auctions by any person not exceeding fair
36  market value of $50 per event; or
37    (E)  any communication by an incumbent elected state or local officer
38  with one or more individuals unless the primary purpose thereof is to
39  influence the nomination or election of a candidate.
40    (g)  ``Party committee'' means:
41    (1)  The state committee of a political party regulated by article 3 of
42  chapter 25 of the Kansas Statutes Annotated, or;
43    (2)  the county central committee or the state committee of a political
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 1  party regulated under article 38 of chapter 25 of the Kansas Statutes
 2  Annotated or;
 3    (3)  the bona fide national organization or committee of those political
 4  parties regulated by the Kansas Statutes Annotated, or;
 5    (4)  not more than one political committee established by the state
 6  committee of any such political party and designated as a recognized
 7  political committee for the senate or; or
 8    (5)  not more than one political committee established by the state
 9  committee of any such political party and designated as a recognized
10  political committee for the house of representatives.
11    (h)  ``Person'' means any individual, committee, corporation, partner-
12  ship, trust, organization or association.
13    (i)  ``Political committee'' means any combination of two or more in-
14  dividuals or any person other than an individual, a major purpose of which
15  is to support or oppose any candidate for state or local office, but not
16  including any candidate committee or party committee.
17    (j)  ``Receipt'' means a contribution or any other money or thing of
18  value, but not including volunteer services provided without compensa-
19  tion, received by a treasurer in the treasurer's official capacity.
20    (k)  ``State office'' means any state office as defined in K.S.A. 25-2505,
21  and amendments thereto.
22    (l)  ``Testimonial event'' means an event held for the benefit of an
23  individual who is a candidate to raise funds for such candidate's campaign.
24  Testimonial events include but are not limited to dinners, luncheons,
25  rallies, barbecues and picnics.
26    (m)  ``Treasurer'' means a treasurer of a candidate or of a candidate
27  committee, a party committee or a political committee appointed under
28  the campaign finance act or a treasurer of a combination of individuals
29  or a person other than an individual which is subject to paragraph (2) of
30  subsection (a) of K.S.A. 25-4172, and amendments thereto.
31    (n)  ``Local office'' means a member of the governing body of a city
32  of the first class, any elected office of a unified school district having
33  35,000 or more pupils regularly enrolled in the preceding school year, a
34  member of the board of county commissioners of a county or of the board
35  of public utilities.
36    Sec. 5.  K.S.A. 1996 Supp. 25-4145 is hereby amended to read as
37  follows: 25-4145. (a) Each party committee and each political committee
38  which anticipates receiving contributions or making expenditures shall
39  appoint a chairperson and a treasurer. The chairperson of each party
40  committee and each political committee which supports or opposes a
41  candidate for state office shall make a statement of organization and file
42  it with the secretary of state not later than 10 days after establishment of
43  such committee. The chairperson of each political committee, the major
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 1  purpose of which is to support or oppose any candidate for local office,
 2  shall make a statement of organization and file it with the county election
 3  officer not later than 10 days after establishment of such committee.
 4    (b)  Every statement of organization shall include:
 5    (1)  The name and address of the committee;
 6    (2)  the names and addresses of the chairperson and treasurer of the
 7  committee;
 8    (3)  the names and addresses of affiliated or connected organizations;
 9  and
10    (4)  in the case of a political committee, the full name of the organi-
11  zation with which the committee is connected or affiliated or, name or
12  description sufficiently describing the affiliation or, if the committee is
13  not connected or affiliated with any one organization, the trade, profes-
14  sion or primary interest of contributors of the political committee.
15    (c)  Any change in information previously reported in a statement of
16  organization shall be reported on a supplemental statement of organiza-
17  tion and filed not later than 10 days following the change.
18    (d) (1)  Each political committee which anticipates receiving contri-
19  butions shall register annually with the commission on or before July 1
20  of each year. Each political committee registration shall be in the form
21  and contain such information as may be required by the commission.
22    (2)  Each registration by a political committee anticipating the receipt
23  of $2,501 or more in any calendar year shall be accompanied by an annual
24  registration fee of $200.
25    (3)  Each registration by a political committee anticipating the receipt
26  of more than $500 but less than $2,501 in any calendar year shall be
27  accompanied by an annual registration fee of $30.
28    (4)  Each registration by a political committee anticipating the receipt
29  of $500 or less in any calendar year shall be accompanied by an annual
30  registration fee of $15.
31    (5)  Any political committee which is currently registered under sub-
32  section (d)(3) or (d)(4) and which receives contributions in excess of
33  $2,500 for a calendar year, shall file, within three days of the date when
34  contributions exceed such amount, an amended registration form which
35  shall be accompanied by an additional fee for such year equal to the
36  difference between $200 and the amount of the fee that accompanied
37  the current registration.
38    (6)   Any political committee which is currently registered under sub-
39  section (d)(4) and which receives contributions in excess of $500 but
40  which are less than $2,501, shall file, within three days of the date when
41  contributions exceed $500, an amended registration form which shall be
42  accompanied by an additional fee of $15 for such year.
43    (e)  All such fees received by or for the commission shall be remitted
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 1  to the state treasurer at least monthly. Upon receipt of each such remit-
 2  tance, the state treasurer shall deposit the entire amount in the state
 3  treasury to the credit of the Kansas governmental ethics commission on
 4  governmental standards and conduct fee fund.
 5    Sec. 6.  K.S.A. 1996 Supp. 25-4152 is hereby amended to read as
 6  follows: 25-4152. (a) The commission shall send a notice by registered or
 7  certified mail to any person failing to file any report or statement required
 8  by K.S.A. 25-4144, 25-4145 or 25-4148, and amendments thereto, and to
 9  the candidate appointing any treasurer failing to file any such report,
10  within the time period prescribed therefor. The notice shall state that the
11  required report or statement has not been filed with either the office of
12  secretary of state or county election officer or both. The person failing to
13  file any report or statement, and the candidate appointing any such per-
14  son, shall be responsible for the filing of such report or statement. The
15  notice shall also shall state that such person shall have 15 days from the
16  date such notice is deposited in the mail to comply with the registration
17  and reporting requirements before a civil penalty shall be imposed for
18  each day that the required documents remain unfiled. If such person fails
19  to comply within the prescribed period, such person shall pay to the state
20  a civil penalty of $10 per day for each day that such report or statement
21  remains unfiled, except that no such civil penalty shall exceed $300. The
22  commission may waive, for good cause, payment of any civil penalty im-
23  posed by this section.
24    (b)  Civil penalties provided for by this section shall be paid to the
25  state treasurer, who shall deposit the same in the state treasury to the
26  credit of the Kansas governmental ethics commission on governmental
27  standards and conduct fee fund.
28    (c)  If a person fails to pay a civil penalty provided for by this section,
29  it shall be the duty of the attorney general or county or district attorney
30  to bring an action to recover such civil penalty in the district court of the
31  county in which such person resides.
32    Sec. 7.  K.S.A. 25-4153a is hereby amended to read as follows: 25-
33  4153a. No registered lobbyist or, political committee or person, other than
34  an individual, shall make a contribution as defined by subsection (d) of
35  K.S.A. 25-4143, and amendments thereto, to any legislator, candidate for
36  membership in the senate or house of representatives or, candidate com-
37  mittee for any such legislator or candidate, the committee established by
38  a state committee of any political party and designated as a recognized
39  political committee for the senate or house of representatives, a political
40  committee established to support or oppose candidates of a single party
41  in either the house of representatives or the senate, state officer elected
42  on a statewide basis, candidate for state office elected on a statewide basis
43  or candidate committee for any such officer or candidate after January 1
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 1  and prior to May 15 of any year of each year and prior to adjournment
 2  sine die of the regular session of the legislature or at any other time in
 3  which the legislature is in session and. No such legislator, officer, candi-
 4  date or committee shall accept or solicit any contribution as defined by
 5  subsection (d) of K.S.A. 25-4143, and amendments thereto, from any
 6  registered lobbyist or, political committee or person, other than an in-
 7  dividual, during such period.  No legislator, candidate for membership in
 8  the senate or house of representatives or candidate committee for such
 9  legislator or candidate shall solicit donations for any community, service,
10  civic, educational, youth, recreational, charitable, religious, scientific or
11  literary organization from any lobbyist or person, other than an individ-
12  ual, during such period.
13    Sec. 8.  K.S.A. 25-4180 is hereby amended to read as follows: 25-
14  4180. (a) Every person who engages in any activity promoting or opposing
15  the adoption or repeal of any provision of the Kansas constitution and
16  who accepts moneys or property for the purpose of engaging in such
17  activity shall make an annual report to the secretary of state of individual
18  contributions or contributions in kind in an aggregate amount or value in
19  excess of $50 received during the preceding calendar year for such pur-
20  poses. The report shall show the name and address of each contributor
21  for the activity and the amount or value of the individual contribution
22  made, together with a total value of all contributions received, and shall
23  also account for expenditures in an aggregate amount or value in excess
24  of $50 from such contributions by showing the amount or value expended
25  to each payee and the purpose of each such expenditure, together with a
26  total value of all expenditures made. The annual report shall be filed on
27  or before February 15 of each year for the preceding calendar year.
28    In addition to the annual report, a person engaging in an activity pro-
29  moting the adoption or repeal of a provision of the Kansas constitution
30  who accepts any contributed moneys for such activity shall make a pre-
31  liminary report to the secretary of state 15 days prior to each election at
32  which a proposed constitutional amendment is submitted. Such report
33  shall show the name and address of each individual contributor, together
34  with the amount contributed or contributed in kind in an aggregate
35  amount or value in excess of $50, and the expenditures in an aggregate
36  amount or value in excess of $50 from such contributions by showing the
37  amount paid to each payee and the purpose of the expenditure. A sup-
38  plemental report in the same format as the preliminary report shall be
39  filed with the secretary of state within 15 days after any election on a
40  constitutional proposition where contributed funds are received and ex-
41  pended in opposing or promoting such proposition.
42    Any person who engages in any activity promoting or opposing the
43  adoption or repeal of any provision of the Kansas constitution shall be
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 1  considered engaged in such activity upon the date the concurrent reso-
 2  lution passes the Kansas house of representatives and senate in its final
 3  form. Upon such date, if the person has funds in the constitutional
 4  amendment campaign treasury, such person shall be required to report
 5  such funds as provided by this section.
 6    The word ``person'' as used herein means an individual, corporation,
 7  partnership, association, organization or other legal entity.
 8    (b) (1)  The commission shall send a notice by registered or certified
 9  mail to any person failing to file any report required by subsection (a)
10  within the time period prescribed therefor. The notice shall state that the
11  required report has not been filed with the office of the secretary of state.
12  The notice shall also state that such person shall have 15 days from the
13  date such notice is deposited in the mail to comply with the reporting
14  requirements before a civil penalty shall be imposed for each day that
15  the required documents remain unfiled. If such person fails to comply
16  within the prescribed period, such person shall pay to the state a civil
17  penalty of $10 per day for each day that such report remains unfiled,
18  except that no such civil penalty shall exceed $300. The commission may
19  waive, for good cause, payment of any civil penalty imposed by this sec-
20  tion.
21    (2)  Civil penalties provided for by this section shall be paid to the
22  state treasurer, who shall deposit the same in the state treasury to the
23  credit of the Kansas governmental ethics commission on governmental
24  standards and conduct fee fund.
25    (3)  If a person fails to pay a civil penalty provided for by this section,
26  it shall be the duty of the attorney general or county or district attorney
27  to bring an action to recover such civil penalty in the district court of the
28  county in which such person resides.
29    (c)  The intentional failure to file any report required by subsection
30    (a) is a class A misdemeanor.
31    (d)  This section shall be part of and supplemental to the campaign
32  finance act.
33    Sec. 9.  K.S.A. 1996 Supp. 25-4181 is hereby amended to read as
34  follows: 25-4181. (a) The commission, in addition to any other penalty
35  prescribed under the campaign finance act, may assess a civil fine, after
36  proper notice and an opportunity to be heard, against any person for a
37  violation of the campaign finance act in an amount not to exceed $5,000
38  for the first violation, $10,000 for the second violation and $15,000 for
39  the third violation and for each subsequent violation. Whenever any civil
40  fine or penalty is proposed to be assessed against the treasurer of any
41  candidate who is not also the candidate, such notice shall be given to both
42  the treasurer and the candidate prior to the assessment of such fine or
43  penalty. All fines assessed and collected under this section shall be re-
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 1  mitted promptly to the state treasurer. Upon receipt thereof, the state
 2  treasurer shall deposit the entire amount in the state treasury and credit
 3  it to the Kansas governmental ethics commission on governmental stan-
 4  dards and conduct fee fund.
 5    (b)  In addition to any other penalty prescribed under subsection (a)
 6  or any other penalty prescribed under the campaign finance act, the com-
 7  mission may assess a civil fine, after proper notice and an opportunity to
 8  be heard, against any candidate who accepts, or whose candidate com-
 9  mittee accepts, contributions in excess of the limitations specified in sub-
10  sections (a), (d), (g) and (i) of K.S.A. 25-4153, and amendments thereto.
11  The amount of such civil penalty shall be equal to 1/2 of the amount which
12  is in excess of the amount authorized by such subsections, not to exceed
13  $100. Such civil penalty may be imposed without proof of intent to violate
14  the provisions of such subsections. The commission may waive, for good
15  cause, payment of any civil fine imposed pursuant to this subsection.
16    (b) (c)  No individual who has failed to pay any civil penalty or civil
17  fine assessed, or failed to file any report required to be filed, under the
18  campaign finance act, unless such penalty or fine has been waived or is
19  under appeal, shall be eligible to become a candidate for state office or
20  local office under the laws of the state until such penalty or fine has been
21  paid or is on appeal or such report has been filed or both such penalty
22  or fine has been paid and such report filed.
23    Sec. 10.  K.S.A. 1996 Supp. 25-4186 is hereby amended to read as
24  follows: 25-4186. (a) Not later than 10 days after receiving any contri-
25  bution or making any expenditure for a gubernatorial inauguration, the
26  governor-elect shall appoint an inaugural treasurer. The name and ad-
27  dress of such treasurer shall be reported to the secretary of state by the
28  governor-elect not later than 10 days after the appointment.
29    (b)  No person shall make any expenditure or make or receive any
30  contribution or receipt, in kind or otherwise, for a gubernatorial inau-
31  guration except by or through the inaugural treasurer.
32    (c)  The inaugural treasurer shall keep detailed accounts of all contri-
33  butions and other receipts received, in kind or otherwise, and all expend-
34  itures made for a gubernatorial inauguration. Accounts of the treasurer
35  may be inspected under conditions determined by the commission and
36  shall be preserved for a period to be designated by the commission. Every
37  person who receives a contribution or other receipt, in kind or otherwise,
38  for an inaugural treasurer more than five days before the ending date of
39  any period for which a report is required under this section shall, on
40  demand of the treasurer, or in any event on or before the ending date of
41  the reporting period, remit the same and render to the treasurer an ac-
42  count thereof, including the name and address of the person, if known,
43  making the contribution or other receipt and the date received. No con-
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 1  tribution or other receipt received by the inaugural treasurer shall be
 2  commingled with personal funds of the governor-elect or inaugural trea-
 3  [chsurer.
 4    (d)  The inaugural treasurer shall file with the secretary of state a
 5  report on March 10 and July 10 following the inauguration. The report
 6  filed on March 10 shall be for the period ending on February 28 and the
 7  report filed on July 10 shall be for the period beginning on March 1 and
 8  ending on June 30. Each report shall contain the information required to
 9  be stated in a report pursuant to K.S.A. 25-4148 and 25-4148a, and
10  amendments thereto, and a declaration as to the correctness of the report
11  in the form prescribed by K.S.A. 25-4151, and amendments thereto. The
12  July 10 report shall be a termination report which shall include full in-
13  formation as to the disposition of residual funds. If a report is sent by
14  certified mail on or before the day it is due, the mailing shall constitute
15  receipt by the secretary of state.
16    (e)  The aggregate amount contributed, in kind or otherwise, by any
17  person for a gubernatorial inauguration shall not exceed $2,000. No per-
18  son shall make a contribution in the name of another person, and no
19  person shall knowingly accept a contribution made by one person in the
20  name of another. No person shall give or accept any contribution in excess
21  of $10 unless the name and address of the contributor is made known to
22  the individual receiving the contribution. The aggregate of contributions
23  for which the name and address of the contributor is not known shall not
24  exceed 50% of the amount one person may contribute.
25    (f)  No person shall copy any name of a contributor from any report
26  filed under this section and use such name for any commercial purpose,
27  and no person shall use any name for a commercial purpose with knowl-
28  edge that such name was obtained solely by copying information relating
29  to contributions contained in any report filed under this section.
30    (g)  In addition to other reports required by this section, the inaugural
31  treasurer shall report the amount and nature of debts and obligations
32  owed for the gubernatorial inauguration, at times prescribed by the com-
33  mission, continuing until such debts and obligations are fully paid or dis-
34  charged.
35    (h)  No moneys received by any inaugural treasurer shall be used or
36  be made available for the personal use of the governor-elect or governor
37  and no such moneys shall be used by such governor-elect or governor
38  except for legitimate gubernatorial inauguration expenses.
39    For the purpose of this subsection, expenditures for ``personal use''
40  shall include expenditures to defray normal living expenses and expend-
41  itures for personal benefit having no direct connection with or effect upon
42  the inauguration.
43    (i)  Before the filing of a termination report in accordance with this
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 1  section all residual funds not otherwise obligated for the payment of ex-
 2  penses incurred for the gubernatorial inauguration shall be remitted to
 3  the state treasurer who shall deposit the entire amount in the state treas-
 4  ury and credit:
 5    (1)  To the inaugural expense fund created by K.S.A. 1996 Supp. 25-
 6  4187, and amendments thereto: (A) An amount equal to the amount cer-
 7  tified to the director of accounts and reports by the adjutant general as
 8  the amount expended by the adjutant general for expenses incurred in
 9  connection with the gubernatorial inauguration; or (B) if the amount of
10  residual funds is less than the amount certified, the entire amount of the
11  deposit; and
12    (2)  to the Kansas governmental ethics commission on governmental
13  standards and conduct fee fund created by K.S.A. 25-4119e and amend-
14  ments thereto, any remaining balance.
15    (j) (1)  The commission shall send a notice by registered or certified
16  mail to any inaugural treasurer who fails to file any report required by
17  this section within the time period prescribed therefor. The notice shall
18  state that the required report has not been filed with the office of the
19  secretary of state. The notice shall also state that the treasurer shall have
20  15 days from the date such notice is deposited in the mail to comply with
21  the reporting requirements before a civil penalty shall be imposed for
22  each day that the required documents remain unfiled. If the treasurer
23  fails to comply within the prescribed period, the treasurer shall pay to
24  the state a civil penalty of $10 per day for each day that the report remains
25  unfiled, except that no such civil penalty shall exceed $300. The com-
26  mission may waive, for good cause, payment of any civil penalty imposed
27  by this subsection.
28    (2)  Civil penalties provided for by this subsection shall be paid to the
29  state treasurer, who shall deposit the entire amount in the state treasury
30  and credit it to the Kansas governmental ethics commission on govern-
31  mental standards and conduct fee fund.
32    (3)  If a person fails to pay a civil penalty provided for by this section,
33  it shall be the duty of the attorney general to bring an action to recover
34  such civil penalty in the district court of Shawnee county.
35    (k)  Any violation of subsection (e), (f) or (h) or any intentional failure
36  to file any report required by this section is a class A misdemeanor.
37    (l)  Nothing in this section shall be construed to apply to expenditures
38  of state moneys related to any inaugural activity.
39    (m)  This section shall be part of and supplemental to the campaign
40  finance act.
41    Sec. 11.  K.S.A. 1996 Supp. 46-236 is hereby amended to read as
42  follows: 46-236. No state officer or employee, candidate for state office
43  or state officer elect shall solicit any economic opportunity, gift, loan,
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 1  gratuity, special discount, favor, hospitality, or service from any person
 2  known to have a special interest, under circumstances where such officer,
 3  employee, candidate or state officer elect knows or should know that a
 4  major purpose of the donor in granting the same could be to influence
 5  the performance of the official duties or prospective official duties of such
 6  officer, employee, candidate or state officer elect.
 7    Except when a particular course of official action is to be followed as
 8  a condition thereon, this section shall not apply to: (1) Any contribution
 9  reported in compliance with the campaign finance act; (2) a commercially
10  reasonable loan or other commercial transaction in the ordinary course
11  of business; or (3) except as provided by K.S.A. 25-4153a, and amend-
12  ments thereto, any solicitation for the benefit of any charitable organiza-
13  tion which is required to file a registration statement with the secretary
14  of state pursuant to K.S.A. 17-1740 17-1763, and amendments thereto,
15  or which is exempted from filing such statement pursuant to K.S.A. 17-
16  1741 17-1762, and amendments thereto, or for the benefit of any edu-
17  cational institution or such institution's endowment association, if such
18  association has qualified as a nonprofit organization under paragraph (3)
19  of subsection (c) of section 501 of the internal revenue code of 1986, as
20  amended.
21    Sec. 12.  K.S.A. 1996 Supp. 46-237 is hereby amended to read as
22  follows: 46-237. (a) No state officer or employee, candidate for state office
23  or state officer elect shall accept, or agree to accept any economic op-
24  portunity, gift, loan, gratuity, special discount, favor, hospitality, or service
25  having an aggregate value of $40 or more in any calendar year from any
26  one person known to have a special interest, under circumstances where
27  such person knows or should know that a major purpose of the donor is
28  to influence such person in the performance of their official duties or
29  prospective official duties.
30    (b)  No person with a special interest shall offer, pay, give or make
31  any economic opportunity, gift, loan, gratuity, special discount, favor, hos-
32  pitality or service having an aggregate value of $40 or more in any calendar
33  year to any state officer or employee, candidate for state office or state
34  officer elect with a major purpose of influencing such officer or employee,
35  candidate for state office or state officer elect in the performance of of-
36  ficial duties or prospective official duties.
37    (c)  No person licensed, inspected or regulated by a state agency shall
38  offer, pay, give or make any economic opportunity, gift, loan, gratuity,
39  special discount, favor, hospitality, or service having an aggregate value
40  of $40 or more in any calendar year to such agency or any state officer
41  or employee, candidate for state office or state officer elect of that agency.
42    (d)  Hospitality in the form of recreation, food and beverages are pre-
43  sumed not to be given to influence a state officer or employee, candidate
H Sub. for SB 112
                                     
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 1  for state office or state officer elect in the performance of official duties
 2  or prospective official duties, except when a particular course of official
 3  action is to be followed as a condition thereon. For the purposes of this
 4  subsection, the term recreation shall not include the providing or the
 5  payment of the cost of transportation or lodging.
 6    (e)  Except when a particular course of official action is to be followed
 7  as a condition thereon, this section shall not apply to: (1) Any contribution
 8  reported in compliance with the campaign finance act; or (2) a commer-
 9  cially reasonable loan or other commercial transaction in the ordinary
10  course of business.
11    (f)  No state officer or employee shall accept any payment of honoraria
12  for any speaking engagement except that a member of the state legislature
13  or a part-time officer or employee of the executive branch of government
14  shall be allowed to receive reimbursement in the preparation for and the
15  making of a presentation at a speaking engagement in an amount fixed
16  by the Kansas commission on governmental standards and conduct prior
17  to the acceptance of the speaking engagement. Nothing in this section
18  shall be construed to prohibit the reimbursement of state officers and
19  employees for reasonable expenses incurred in attending seminars, con-
20  ferences and other speaking engagements.
21    (g)  The provisions of this section shall not be applicable to or prohibit
22  the acceptance of gifts from governmental agencies of foreign nations
23  except that any gift accepted from such foreign governmental agency,
24  having an aggregate value of $100 or more, shall be accepted on behalf
25  of the state of Kansas.
26    (h)  No legislator shall solicit any contribution to be made to any or-
27  ganization for the purpose of paying for travel, subsistence and other
28  expenses incurred by such legislator or other members of the legislature
29  in attending and participating in meetings, programs and activities of such
30  organization or those conducted or sponsored by such organization, but
31  nothing in this act or the act of which this act is amendatory shall be
32  construed to prohibit any legislator from accepting reimbursement for
33  actual expenses for travel, subsistence, hospitality, entertainment and
34  other expenses incurred in attending and participating in meetings, pro-
35  grams and activities sponsored by the government of any foreign nation,
36  or any organization organized under the laws of such foreign nation or
37  any international organization or any national, nonprofit, nonpartisan or-
38  ganization established for the purpose of serving, informing, educating
39  and strengthening state legislatures in all states of the nation, when paid
40  from funds of such organization and nothing shall be construed to limit
41  or prohibit the expenditure of funds of and by any such organization for
42  such purposes.
43    Sec. 13.  K.S.A. 46-246a is hereby amended to read as follows: 46-
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 1  246a. (a) From and after the effective date of this act, no state officer or
 2  employee shall advocate or cause the employment, appointment, pro-
 3  motion, transfer or advancement to any office or position of the state, of
 4  a member of such officer's or employee's household or a family member.
 5    (b)  No state officer or employee shall participate in an action relating
 6  to the employment or discipline of a member of the officer's or employ-
 7  ee's household or a family member.
 8    (c)  The provisions of this section shall not apply to appointments of
 9  members of the governor's staff, nor shall it apply to any action involving
10  the employment, appointment, promotion, transfer or advancement of
11  any officer or employee occurring prior to the effective date of this act.
12    (d)  The provisions of this section shall be subject to interpretation
13  and enforcement by the Kansas governmental ethics commission on gov-
14  ernmental standards and conduct in the manner provided by K.S.A. 46-
15  253 through 46-263, and amendments thereto.
16    Sec. 14.  K.S.A. 46-253 is hereby amended to read as follows: 46-253.
17  ``Commission'' as used in K.S.A. 46-215 to 46-280, inclusive, and any
18  amendments thereto, and K.S.A. 46-248a means the Kansas governmental
19  ethics commission on governmental standards and conduct created by
20  K.S.A. 25-4119a, and amendments thereto. The commission may adopt
21  rules and regulations for the administration of the provisions of K.S.A.
22  46-215 to 46-280, inclusive, and amendments thereto, and K.S.A. 46-
23  248a, and amendments thereto. Any such rules and regulations adopted
24  by the Kansas public disclosure commission on governmental standards
25  and conduct shall continue in force and effect and shall be deemed to be
26  the rules and regulations of the commission created by K.S.A. 25-4119a,
27  and amendments thereto, until revised, amended, repealed or nullified
28  pursuant to law. All rules and regulations of the commission shall be
29  subject to the provisions of article 4 of chapter 77 of Kansas Statutes
30  Annotated.
31    Sec. 15.  K.S.A. 1996 Supp. 46-265 is hereby amended to read as
32  follows: 46-265. (a) Every lobbyist shall register with the secretary of state
33  by completing and signing a registration form prescribed and provided
34  by the commission. Such registration shall show the name and address of
35  the lobbyist, the name and address of the person compensating the lob-
36  byist for lobbying, the purpose of the employment and the method of
37  determining and computing the compensation of the lobbyist. If the lob-
38  byist is compensated or to be compensated for lobbying by more than
39  one employer or is to be engaged in more than one employment, the
40  relevant facts listed above shall be separately stated for each employer
41  and each employment. Whenever any new lobbying employment or lob-
42  bying position is accepted by a lobbyist already registered as provided in
43  this section, such lobbyist shall report the same on forms prescribed and
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 1  provided by the commission before engaging in any lobbying activity re-
 2  lated to such new employment or position, and such report shall be filed
 3  with the secretary of state. When a lobbyist is an employee of a lobbying
 4  group or firm which contracts to lobby and not an owner or partner of
 5  such entity, the lobbyist shall report each client of the group, firm or
 6  entity whose interest the lobbyist represents. Whenever the lobbying of
 7  a lobbyist concerns a legislative matter, the secretary of state shall
 8  promptly transmit copies of each registration and each report filed under
 9  this act to the secretary of the senate and the chief clerk of the house of
10  representatives.
11    (b)  On or after October 1, in any year any person may register as a
12  lobbyist under this section for the succeeding calendar year. Such regis-
13  tration shall expire annually on December 31, of the year for which the
14  lobbyist is registered. In any calendar year, before engaging in lobbying,
15  persons to whom this section applies shall register or renew their regis-
16  tration as provided in this section. Except for employees of lobbying
17  groups or firms, every person registering or renewing registration who
18  anticipates spending $1,000 or less for lobbying in such registration year
19  on behalf of any one employer shall pay to the secretary of state a fee of
20  $30 for lobbying for each such employer. Except for employees of lob-
21  bying groups or firms, every person registering or renewing registration
22  who anticipates spending more than $1,000 for lobbying in such registra-
23  tion year on behalf of any one employer shall pay to the secretary of state
24  a fee of $250 for lobbying for such employer. Any lobbyist who at the
25  time of initial registration anticipated spending less than $1,000, on behalf
26  of any one employer, but at a later date spends in excess of such amount,
27  shall, within three days of the date when expenditures exceed such
28  amount, file an amended registration form which shall be accompanied
29  by an additional fee of $220 for such year. Every person registering or
30  renewing registration as a lobbyist who is an employee of a lobbying group
31  or firm and not an owner or partner of such entity shall pay an annual
32  fee of $300. The secretary of state shall remit all moneys received under
33  this section to the state treasurer, and the state treasurer shall deposit the
34  same in the state treasury to the credit of the Kansas governmental ethics
35  commission on governmental standards and conduct fee fund.
36    (c)  Any person who has registered as a lobbyist pursuant to this act
37  may file, upon termination of such person's lobbying activities, a state-
38  ment terminating such person's registration as a lobbyist. Such statement
39  shall be on a form prescribed by the commission and shall state the name
40  and address of the lobbyist, the name and address of the person com-
41  pensating the lobbyist for lobbying and the date of the termination of the
42  lobbyist's lobbying activities.
43    (d)  No person who has failed or refused to pay any civil penalty im-
H Sub. for SB 112
                                     
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 1  posed pursuant to K.S.A. 46-280, and amendments thereto, shall be au-
 2  thorized or permitted to register as a lobbyist in accordance with this
 3  section until such penalty has been paid in full.
 4    Sec. 16.  K.S.A. 46-280 is hereby amended to read as follows: 46-280.
 5    (a) The commission shall send a notice by registered or certified mail to
 6  any person failing to register or to file any report or statement as required
 7  by K.S.A. 46-247, 46-265 or 46-268, and amendments thereto, within the
 8  time period prescribed therefor. The notice shall state that the required
 9  registration, report or statement had not been filed with the office of
10  secretary of state. The notice shall also state that such person shall have
11  five days from the date of receipt of such notice to comply with the
12  registration and reporting requirements before a civil penalty shall be
13  imposed for each day that the required documents remain unfiled. If such
14  person fails to comply within such period, such person shall pay to the
15  state a civil penalty of $10 per day for each day that such person remains
16  unregistered or that such report or statement remains unfiled, except that
17  no such civil penalty shall exceed $300. The commission may waive, for
18  good cause, payment of any civil penalty imposed hereunder.
19    (b)  Whenever the commission shall determine that any report filed
20  by a lobbyist as required by K.S.A. 46-269, and amendments thereto, is
21  incorrect, incomplete or fails to provide the information required by such
22  section, the commission shall notify such lobbyist by registered or certi-
23  fied mail, specifying the deficiency. Such notice shall state that the lob-
24  byist shall have 30 days from the date of the receipt of such notice to file
25  an amended report correcting such deficiency before a civil penalty will
26  be imposed and the registration of such lobbyist revoked and the badge
27  be required to be returned to the office of the secretary of state. A copy
28  of such notice shall be sent to the office of the secretary of state. If such
29  lobbyist fails to file an amended report within the time specified, such
30  lobbyist shall pay to the commission a civil penalty of $10 per day for
31  each day that such person fails to file such report except that no such civil
32  penalty shall exceed $300. On the 31st day following the receipt of such
33  notice the registration of any lobbyist failing to file such amended report
34  shall be revoked.
35    (c)  Civil penalties provided for by this section shall be paid to the
36  state treasurer, who shall deposit the same in the state treasury to the
37  credit of the Kansas governmental ethics commission on governmental
38  standards and conduct fee fund.
39    (d) (1)  Except as provided in subsection (2), if a person fails to pay
40  a civil penalty provided for by this section, it shall be the duty of the
41  attorney general or county or district attorney to bring an action to recover
42  such civil penalty in the district court of the county in which such person
43  resides.
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 1    (2)  If a person required to file under subsection (f) of K.S.A. 46-247,
 2  and amendments thereto, fails to pay a civil penalty provided for by this
 3  section, it shall be the duty of the attorney general to bring an action to
 4  recover such civil penalty in the district court of Shawnee County, Kansas.
 5    Sec. 17.  K.S.A. 46-288 is hereby amended to read as follows: 46-288.
 6  The commission, in addition to any other penalty prescribed under K.S.A.
 7  46-215 through 46-286, and amendments thereto, may assess a civil fine,
 8  after proper notice and an opportunity to be heard, against any person
 9  for a violation pursuant to K.S.A. 46-215 through 46-286, and amend-
10  ments thereto, in an amount not to exceed $5,000 for the first violation,
11  not to exceed $10,000 for the second violation and not to exceed $15,000
12  for the third violation and for each subsequent violation. All fines assessed
13  and collected under this section shall be remitted promptly to the state
14  treasurer. Upon receipt thereof, the state treasurer shall deposit the en-
15  tire amount in the state treasury and credit it to the Kansas governmental
16  ethics commission on governmental standards and conduct fee fund.
17    Sec. 18.  K.S.A. 1996 Supp. 75-4302a is hereby amended to read as
18  follows: 75-4302a. (a) The statement of substantial interests shall include
19  all substantial interests of the individual making the statement.
20    (b)  Statements of substantial interests shall be filed by the following
21  individuals at the times specified:
22    (1)  By a candidate for local office who becomes a candidate on or
23  before the filing deadline for the office, not later than 10 days after the
24  filing deadline, unless before that time the candidacy is officially declined
25  or rejected.
26    (2)  By a candidate for local office who becomes a candidate after the
27  filing deadline for the office, within five days of becoming a candidate,
28  unless within that period the candidacy is officially declined or rejected.
29    (3)  By an individual appointed on or before April 30 of any year to
30  fill a vacancy in an elective office of a governmental subdivision, between
31  April 15 and April 30, inclusive, of that year.
32    (4)  By an individual appointed after April 30 of any year to fill a
33  vacancy in an elective office of a governmental subdivision, within 15 days
34  after the appointment.
35    (5)  By any individual holding an elective office of a governmental
36  subdivision, between April 15 and April 30, inclusive, of any year if, during
37  the preceding calendar year, any change occurred in the individual's sub-
38  stantial interests.
39    (c)  The statement of substantial interests required to be filed pur-
40  suant to this section shall be filed in the office where declarations of
41  candidacy for the local governmental office sought or held by the indi-
42  vidual are required to be filed.
43    (d)  The Kansas governmental ethics commission on governmental
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 1  standards and conduct shall adopt rules and regulations prescribing the
 2  form and the manner for filing the disclosures of substantial interests
 3  required by law. The commission shall provide samples of the form of
 4  the statement to each county election officer.
 5    (e)  If an individual or an individual's spouse holds the position of
 6  officer, director, associate, partner or proprietor in an organization ex-
 7  empt from federal taxation of corporations under section 501(c)(3), (4),
 8    (6), (7), (8), (10) or (19) of chapter 26 of the United States code, the
 9  individual shall comply with all disclosure provisions of subsections (a),
10    (b), (c) and (d) of this section notwithstanding the provisions of K.S.A.
11  75-4301, and amendments thereto, which provide that these individuals
12  may not have a substantial interest in these corporations.
13    Sec. 19.  K.S.A. 1996 Supp. 75-4303a is hereby amended to read as
14  follows: 75-4303a. (a) The Kansas governmental ethics commission on
15  governmental standards and conduct shall render advisory opinions on
16  the interpretation or application of K.S.A. 75-4301a, 75-4302a, 75-4303a,
17  75-4304, 75-4305 and 75-4306, and amendments thereto. The opinions
18  shall be rendered after receipt of a written request therefor by a local
19  governmental officer or employee or by any person who has filed as a
20  candidate for local office. Any person who requests and receives an ad-
21  visory opinion and who acts in accordance with its provisions shall be
22  presumed to have complied with the provisions of the general conflict of
23  interests law. A copy of any advisory opinion rendered by the commission
24  shall be filed by it in the office of the secretary of state, and any opinion
25  so filed shall be open to public inspection. All requests for advisory opin-
26  ions shall be directed to the secretary of state who shall notify the com-
27  mission thereof.
28    (b)  The Kansas governmental ethics commission on governmental
29  standards and conduct shall administer K.S.A. 75-4301a, 75-4302a, 75-
30  4303a, 75-4304, 75-4305 and 75-4306, and amendments thereto, and may
31  adopt rules and regulations therefor.
32    Sec. 20.  K.S.A. 25-4119a, 25-4119e, 25-4153a, 25-4180, 46-246a, 46-
33  253, 46-280 and 46-288 and K.S.A. 1996 Supp. 25-4119f, 25-4143, 25-
34  4145, 25-4152, 25-4181, 25-4186, 46-236, 46-237, 46-265, 75-4302a and
35  75-4303a are hereby repealed.
36    Sec. 21.  This act shall take effect and be in force from and after its
37  publication in the statute book.