April 10, 1998

Journal of the House

SIXTIETH DAY ______

Hall of the House of Representatives, Topeka, KS,

Friday, April 10, 1998, 9:00 a.m.

The House met pursuant to adjournment with Speaker Shallenburger in the chair.

The roll was called with 122 members present.

Reps. Compton and Franklin were excused on excused absence by the Speaker.

Present later: Rep. Franklin.

Due to the death of Rep. Steve Lloyd, 64th District, the House now has 124 members.

Prayer by Chaplain Washington:

Heavenly Father,

We stand before you with mixed emotions on this Good Friday; a day when we
recognize the fact of death. Our minds are flooded with thoughts of Rep. Lloyd who
just died on his birthday. But Lord, in talking to him he told of having more than
one birthday. He told of the day in which he was born into a new life with thee.
Lord, we thank you today for his second birthday. The day in which he was able to
claim the hope of eternal life with you. Lord, you took him from his wetlands and
brought him to your land. So on this Friday, we acknowledge the fact of death, but
then on Sunday we can acknowledge the fact of the resurrection. Lord, it is our
prayer today that each of us one day might gather around your throne renewing our
fellowship with Rep. Lloyd to praise You forever.

In the name of Jesus. Amen.

MESSAGE FROM THE SENATE

The Senate adopts conference committee report on H. Sub. for Sub. SB 139.

The Senate adopts conference committee report on SB 488.

The Senate adopts conference committee report on SB 556.

The Senate adopts conference committee report on HB 2249.

The Senate adopts conference committee report on Sub. HB 2950.

The Senate accedes to the request of the House for a conference on HB 2531 and has
appointed Senators Emert, Praeger and Goodwin as conferees on the part of the Senate.

The Senate accedes to the request of the House for a conference on HB 2724 and has
appointed Senators Praeger, Hardenburger and Steineger as second conferees on the part
of the Senate.

The Senate accedes to the request of the House for a conference on HB 2806 and has
appointed Senators Emert, Schraad and Feleciano as second conferees on the part of the
Senate.

COMMUNICATIONS FROM STATE OFFICERS

From Mark S. Beck, Director, Department of Revenue, Division of Property Valuation,
1997 Statistical Report of Property Assessment and Taxation.

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

MOTIONS AND RESOLUTIONS OFFERED ON A PREVIOUS DAY

The motion of Rep. Larkin, in accordance with subsection (b) of House Rule 1309, that
HR 6010 be withdrawn from Committee on Judiciary 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 47; Nays 75; Present but not voting: 0; Absent or not
voting: 2.

Yeas: Boston, Burroughs, Cook, Dahl, Dean, Edmonds, Faber, Flower, Freeborn, Garner,
Grant, Gregory, Hayzlett, Helgerson, Henderson, Henry, Holmes, Howell, Hutchins, Klein,
Krehbiel, Larkin, M. Long, P. Long, Mayans, Mays, McClure, McKechnie, Mollenkamp,
Morrison, Myers, Nichols, O'Connor, O'Neal, Osborne, Pauls, Phelps, Presta, Reardon,
Schwartz, Sharp, Shultz, Spangler, Thimesch, Toplikar, Vickrey, Vining.

Nays: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Campbell, Car-
mody, Correll, Cox, Crow, Dillon, Dreher, Empson, Farmer, Feuerborn, Findley, Flaharty,
Flora, Geringer, Gilbert, Gilmore, Glasscock, Haley, Horst, Huff, Humerickhouse, Jenni-
son, Johnson, Johnston, Kejr, Kirk, Phil Kline, Phill Kline, Kuether, Landwehr, Lane, Ma-
son, McCreary, McKinney, Minor, Neufeld, Packer, Palmer, E. Peterson, J. Peterson, Pot-
torff, Powell, Powers, Ray, Reinhardt, Ruff, Samuelson, Sawyer, Shallenburger, Shore,
Showalter, Shriver, Sloan, Stone, Storm, Swenson, Tanner, Toelkes, Tomlinson, Wagle,
Weber, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson.

Present but not voting: None.

Absent or not voting: Compton, Franklin.

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

FINAL ACTION ON BILLS AND CONCURRENT RESOLUTIONS

HCR 5053, A concurrent resolution memorializing the Senate of the U.S. Congress to
pass H.J. Res. 54, proposing an amendment to the Constitution of the United States au-
thorizing Congress to prohibit the physical desecration of the flag of the United States, was
considered on final action.

On roll call, the vote was: Yeas 115; Nays 6; Present but not voting: 0; Absent or not
voting: 3.

Yeas: Adkins, Alldritt, Allen, Ballard, Ballou, Beggs, Benlon, Boston, Burroughs, Camp-
bell, Carmody, Cook, Correll, Cox, Crow, Dahl, Dean, Dillon, Dreher, Edmonds, Empson,
Faber, Farmer, Feuerborn, Findley, Flora, Flower, Freeborn, Geringer, Gilbert, Gilmore,
Glasscock, Grant, Gregory, Haley, Hayzlett, Helgerson, Henderson, Henry, Holmes, Horst,
Howell, Huff, Humerickhouse, Hutchins, Jennison, Johnson, Johnston, Kejr, Klein, Phil
Kline, Phill Kline, Kuether, Landwehr, Lane, Larkin, M. Long, P. Long, Mason, Mayans,
Mays, McCreary, McKechnie, McKinney, Minor, Mollenkamp, Morrison, Myers, Neufeld,
Nichols, O'Connor, O'Neal, Osborne, Packer, Palmer, Pauls, E. Peterson, J. Peterson,
Phelps, Pottorff, Powell, Powers, Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer,
Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Stone, Storm,
Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber,
Weiland, Wells, Welshimer, Wempe, Wilk, Wilson.

Nays: Aurand, Flaharty, Garner, Krehbiel, McClure, Spangler.

Present but not voting: None.

Absent or not voting: Compton, Franklin, Kirk.

The resolution was adopted.

SB 44, An act relating to income taxation; providing certain credits therefrom; amending
K.S.A. 79-3230 and 79-32,117 and 79-32,117h and repealing the existing sections, was con-
sidered on final action.

On roll call, the vote was: Yeas 96; Nays 24; Present but not voting: 2; Absent or not
voting: 2.

Yeas: Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Boston, Burroughs, Cook, Correll,
Dillon, Edmonds, Empson, Faber, Farmer, Feuerborn, Findley, Freeborn, Garner, Ger-
inger, Gilmore, Grant, Gregory, Haley, Hayzlett, Helgerson, Henderson, Henry, Holmes,
Horst, Howell, Huff, Humerickhouse, Jennison, Johnson, Johnston, Kejr, Kirk, Klein, Phil
Kline, Phill Kline, Krehbiel, Landwehr, Larkin, M. Long, P. Long, Mason, Mayans, Mays,
McClure, McCreary, McKechnie, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols,
O'Connor, O'Neal, Osborne, Packer, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pot-
torff, Powell, Powers, Presta, Reardon, Ruff, Sawyer, Schwartz, Shallenburger, Sharp, Shore,
Showalter, Shriver, Shultz, Spangler, Stone, Swenson, Tanner, Thimesch, Toplikar, Vickrey,
Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wilk, Wilson.

Nays: Adkins, Benlon, Campbell, Cox, Crow, Dahl, Dean, Dreher, Flaharty, Flora,
Flower, Gilbert, Glasscock, Hutchins, Kuether, Lane, Ray, Reinhardt, Samuelson, Sloan,
Storm, Toelkes, Tomlinson, Wempe.

Present but not voting: Carmody, McKinney.

Absent or not voting: Compton, Franklin.

The bill passed, as amended.

SB 418, An act relating to the taxation of motor vehicle fuels; concerning the filing of
certain reports; providing for a motor fuel tax credit; amending K.S.A. 79-3464c and re-
pealing the existing section, was considered on final action.

On roll call, the vote was: Yeas 117; Nays 1; Present but not voting: 3; Absent or not
voting: 3.

Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Burroughs,
Campbell, Carmody, Cook, Correll, Cox, Crow, Dahl, Dean, Dillon, Dreher, Edmonds,
Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Freeborn, Garner,
Geringer, Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett, Helgerson, Hen-
derson, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, John-
son, Johnston, Kejr, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane,
Larkin, M. Long, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie, Mc-
Kinney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Os-
borne, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Ray, Rear-
don, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Shore, Showalter,
Shultz, Sloan, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar,
Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson.

Nays: Spangler.

Present but not voting: Packer, Presta, Shriver.

Absent or not voting: Compton, Franklin, Sharp.

The bill passed.

REPORTS OF STANDING COMMITTEES

The Committee on Appropriations recommends Substitute for SB 424, as amended
by Senate Committee of the Whole, be amended by substituting a new bill to be designated
as ``House Substitute for Substitute for SENATE BILL No. 424,'' as follows:

``HOUSE Substitute for Substitute for SENATE BILL No. 424
By Committee on Appropriations
``AN ACT relating to Kansas insurance coverage for children; duties of the secretary of social and rehabilitation services; funds; joint committee on children's issues and duties
thereof.''; and the substitute bill be passed.

(H. Sub. for Sub. SB 424 was thereupon introduced and read by title.)

MOTIONS TO CONCUR AND NONCONCUR

On motion of Rep. Carmody, the House concurred in Senate amendments to HB 2531,
An act concerning certain crimes; enacting the prevention of assisted suicide act; concerning
the assisting of suicide; providing criminal penalties; providing civil remedy; providing in-
junctive relief; concerning abortions; amending K.S.A. 21-3406, 65-2006, 65-2896b and
75-6104 and K.S.A. 1997 Supp. 65-445, 65-1120, 65-1436, 65-1627, 65- 2836, 65-2837,
65-6703 and 65-6712 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 78; Nays 45; Present but not voting: 0; Absent or not
voting: 1.

Yeas: Ballou, Boston, Burroughs, Campbell, Carmody, Cook, Dahl, Dean, Edmonds,
Empson, Faber, Farmer, Flower, Franklin, Freeborn, Geringer, Gilmore, Glasscock, Grant,
Gregory, Hayzlett, Helgerson, Henry, Holmes, Horst, Howell, Humerickhouse, Hutchins,
Jennison, Kejr, Phill Kline, Landwehr, Larkin, M. Long, P. Long, Mason, Mayans, Mays,
McClure, McCreary, McKechnie, McKinney, Mollenkamp, Morrison, Myers, Neufeld,
Nichols, O'Connor, O'Neal, Osborne, Packer, Palmer, Pauls, J. Peterson, Phelps, Pottorff,
Powell, Powers, Presta, Reardon, Schwartz, Shallenburger, Sharp, Shore, Shultz, Spangler,
Swenson, Thimesch, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland,
Wempe, Wilk, Wilson.

Nays: Adkins, Alldritt, Allen, Aurand, Ballard, Beggs, Benlon, Correll, Cox, Crow, Dillon,
Dreher, Feuerborn, Findley, Flaharty, Flora, Garner, Gilbert, Haley, Henderson, Huff,
Johnson, Johnston, Kirk, Klein, Phil Kline, Krehbiel, Kuether, Lane, Minor, E. Peterson,
Ray, Reinhardt, Ruff, Samuelson, Sawyer, Showalter, Shriver, Sloan, Stone, Storm, Tanner,
Toelkes, Wells, Welshimer.

Present but not voting: None.

Absent or not voting: Compton.

EXPLANATIONS OF VOTE

Mr. Speaker: We vote yes on HB 2531. We vote yes as an affirmation, in the name of
the people of Kansas, elderly and young, frail and healthy, born and unborn, of the value
of life--at its beginning--at its end.

This bill's definition of viability simply states, in part, that the child can live ``indefinitely.''
Indefinite means ``undefined,'' that is, life is not measured in minutes, hours, years, or
decades. The ability to live is the criterion, not the length or what is euphemistically called
the ``quality'' of life.--Tony Powell, Phill Kline, Kenny A. Wilk, Kent Glasscock,
Clark Shultz, Doug Mays, Tim Carmody, Jim Morrison, Phyllis Gilmore, Greg
A. Packer, Cliff Franklin, Don Myers, Bill Reardon, Terry Presta, Billie
Vining, Dave P. Gregory, Dennis Wilson, Bill Mason, Peggy Palmer, Carlos
Mayans, Billie McCreary, Donald L. Dahl, Brenda K. Landwehr, Peggy Long,
Joe Humerickhouse, Joann Freeborn, Carl Dean Holmes, Sharon Schwartz,
Verlyn D. Osborne, John M. Faber, Joann Flower, Becky Hutchins, Vince Cook,
Garry Boston, Michael R. O'Neal, Ted Powers, Eugene Shore, Andrew Howell,
Mike Farmer, Joe Kejr, Shari Weber, Jeff Peterson, Susan Wagle, Robin
Jennison, Tim Shallenburger, Gayle Mollenkamp, Kay O'Connor, Dale
Swenson, Melvin Neufeld, Jene Vickrey, John Ballou, John Toplikar, Gary K.
Hayzlett, Bruce Larkin, Jack Wempe, Jerry Henry, Galen Weiland, Henry M.
Helgerson, Daniel J. Thimesch, George R. Dean, Eber Phelps, Larry L.
Campbell, Janice L. Pauls, Laura McClure, Gerald G. Geringer

Mr. Speaker: Congratulations, to the far right wing for once again maneuvering election
year campaign fodder into an otherwise substantive bill. And with our popular Governor
shying away from any potential primary challenge, it could even be signed into law!

The only problem is the unconstitutional intrusion upon a women's right to privacy.
Coupled with the danger of compelling pre-term fetuses to be declared ``viable,'' this bill is
nothing more than a waste of our time and taxpayer dollars. Mr. Speaker, I vote ``no'' on
HB 2531.--David Haley

INTRODUCTION OF ORIGINAL MOTIONS

On emergency motion of Rep. Jennison, pursuant to House Rule 2311, H. Sub. for Sub.
SB 424 was advanced to Final Action on Bills and Concurrent Resolutions, subject to
amendment, debate and roll call.

FINAL ACTION ON BILLS AND CONCURRENT RESOLUTIONS

Committee report recommending a substitute bill to H. Sub. for Sub. SB 424 was
adopted; also, on motion of Rep. Neufeld was amended on page 5, in line 15, by striking
``services'' and inserting ``issues'';

Also, on motion of Rep. Mayans H. Sub. for Sub. SB 424 was amended on page 4, in
line 10, after the period, by inserting: ``At least one member of the committee from the
house of representatives shall be a member of the committee on insurance, one member
shall be a member of the committee on health and human services and one member shall
be a member of the committee on appropriations. At least one member of the committee
from the senate shall be a member of the committee on financial institutions and insurance,
one member shall be a member of the committee on public health and welfare and one
member shall be a member of the committee on ways and means.'';

H. Sub. for Sub. SB 424, An act relating to Kansas insurance coverage for children;
duties of the secretary of social and rehabilitation services; funds; joint committee on chil-
dren's issues and duties thereof, was considered on final action.

Call of the House was demanded.

On roll call, the vote was: Yeas 123; Nays 0; Present but not voting: 0; Absent or not
voting: 1.

Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Burroughs,
Campbell, Carmody, Cook, Correll, Cox, Crow, Dahl, Dean, Dillon, Dreher, Edmonds,
Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Freeborn,
Garner, Geringer, Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett, Helgerson,
Henderson, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison,
Johnson, Johnston, Kejr, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr,
Lane, Larkin, M. Long, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie,
McKinney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal,
Osborne, Packer, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers,
Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp,
Shore, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thi-
mesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Wel-
shimer, Wempe, Wilk, Wilson.

Nays: None.

Present but not voting: None.

Absent or not voting: Compton.

The substitute bill passed, as amended.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2249, submits the following report:

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

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

On page 1, by striking all of lines 21 through 43;

On pages 2 through 11, by striking all of lines 1 through 43 on each such page;

On page 12, prior to line 1, by inserting six new sections as follows:

``Section 1. K.S.A. 1997 Supp. 72-6407 is hereby amended to read as follows: 72-6407.
(a) ``Pupil'' means any person who is regularly enrolled in a district and attending kinder-
garten or any of the grades one through 12 maintained by the district or who is regularly
enrolled in a district and attending kindergarten or any of the grades one through 12 in
another district in accordance with an agreement entered into under authority of K.S.A. 72-
8233, and amendments thereto, or who is regularly enrolled in a district and attending
special education services provided for preschool-aged exceptional children by the district.
Except as otherwise provided in this subsection, a pupil in attendance full time shall be
counted as one pupil. A pupil in attendance part time shall be counted as that proportion
of one pupil (to the nearest 1/10) that the pupil's attendance bears to full-time attendance.
A pupil attending kindergarten shall be counted as 1/2 pupil. A pupil enrolled in and attending
an institution of postsecondary education which is authorized under the laws of this state to
award academic degrees shall be counted as one pupil if the pupil's postsecondary education
enrollment and attendance together with the pupil's attendance in either of the grades 11
or 12 is at least 5/6 time, otherwise the pupil shall be counted as that proportion of one pupil
(to the nearest 1/10) that the total time of the pupil's postsecondary education attendance
and attendance in grade 11 or 12, as applicable, bears to full-time attendance. A pupil
enrolled in and attending an area vocational school, area vocational-technical school or
approved vocational education program shall be counted as one pupil if the pupil's vocational
education enrollment and attendance together with the pupil's attendance in any of grades
nine through 12 is at least 5/6 time, otherwise the pupil shall be counted as that proportion
of one pupil (to the nearest 1/10) that the total time of the pupil's vocational education
attendance and attendance in any of grades nine through 12 bears to full-time attendance.
A pupil enrolled in a district and attending special education services, except special edu-
cation services for preschool-aged exceptional children, provided for by the district shall be
counted as one pupil. A pupil enrolled in a district and attending special education services
for preschool-aged exceptional children provided for by the district shall be counted as 1/2
pupil. A preschool-aged at-risk pupil enrolled in a district and receiving services under an
approved at-risk pupil assistance plan maintained by the district shall be counted as 1/2 pupil.
A pupil in the custody of the secretary of social and rehabilitation services and enrolled in
unified school district No. 259, Sedgwick county, Kansas, but housed, maintained, and re-
ceiving educational services at the Judge James V. Riddel Boys Ranch, shall be counted as
two pupils. A pupil residing at the Flint Hills job corps center shall not be counted. A pupil
confined in and receiving educational services provided for by a district at a juvenile deten-
tion facility shall not be counted. A pupil enrolled in a district but housed, maintained, and
receiving educational services at a state institution shall not be counted.

(b) ``Preschool-aged exceptional children'' means exceptional children, except gifted
children, who have attained the age of three years but are under the age of eligibility for
attendance at kindergarten.

(c) ``At-risk pupils'' means pupils who are eligible for free meals under the national
school lunch act and who are enrolled in a district which maintains an approved at-risk pupil
assistance plan.

(d) ``Preschool-aged at-risk pupil'' means an at-risk pupil who has attained the age of
four years, is under the age of eligibility for attendance at kindergarten, and has been selected
by the state board in accordance with guidelines consonant with guidelines governing the
selection of pupils for participation in head start programs. The state board shall select not
more than 1,350 preschool-aged at-risk pupils to be counted in any school year.

~~(d)~~ (e) ``Enrollment'' means, for districts scheduling the school days or school hours of
the school term on a trimestral or quarterly basis, the number of pupils regularly enrolled
in the district on September 20 plus the number of pupils regularly enrolled in the district
on February 20 less the number of pupils regularly enrolled on February 20 who were
counted in the enrollment of the district on September 20; and for districts not hereinbefore
specified, the number of pupils regularly enrolled in the district on September 20. Not-
withstanding the foregoing, if enrollment in a district in any school year has decreased from
enrollment in the preceding school year, enrollment of the district in the current school
year may be computed on the basis of enrollment in the preceding school year.

~~(e)~~ (f) ``Adjusted enrollment'' means enrollment adjusted by adding at-risk pupil weight-
ing, program weighting, low enrollment weighting, if any, correlation weighting, if any,
school facilities weighting, if any, ancillary school facilities weighting, if any, and transpor-
tation weighting to enrollment.

~~(f)~~ (g) ``At-risk pupil weighting'' means an addend component assigned to enrollment
of districts on the basis of enrollment of at-risk pupils.

~~(g)~~ (h) ``Program weighting'' means an addend component assigned to enrollment of
districts on the basis of pupil attendance in educational programs which differ in cost from
regular educational programs.

~~(h)~~ (i) ``Low enrollment weighting'' means an addend component assigned to enrollment
of districts having under ~~1,800~~ 1,750 enrollment on the basis of costs attributable to main-
tenance of educational programs by such districts in comparison with costs attributable to
maintenance of educational programs by districts having ~~1,800~~ 1,750 or over enrollment.

~~(i)~~ (j) ``School facilities weighting'' means an addend component assigned to enrollment
of districts on the basis of costs attributable to commencing operation of new school facilities.
School facilities weighting may be assigned to enrollment of a district only if the district has
adopted a local option budget and budgeted therein the total amount authorized for the
school year. School facilities weighting may be assigned to enrollment of the district only in
the school year in which operation of a new school facility is commenced and in the next
succeeding school year.

~~(j)~~ (k) ``Transportation weighting'' means an addend component assigned to enrollment
of districts on the basis of costs attributable to the provision or furnishing of transportation.

~~(k)~~ (l) ``Correlation weighting'' means an addend component assigned to enrollment of
districts having ~~1,800~~ 1,750 or over enrollment on the basis of costs attributable to main-
tenance of educational programs by such districts as a correlate to low enrollment weighting
assigned to enrollment of districts having under ~~1,800~~ 1,750 enrollment.

~~(l)~~ (m) ``Ancillary school facilities weighting'' means an addend component assigned to
enrollment of districts to which the provisions of K.S.A. 1997 Supp. 72-6441, and amend-
ments thereto, apply on the basis of costs attributable to commencing operation of new
school facilities. Ancillary school facilities weighting may be assigned to enrollment of a
district only if the district has levied a tax under authority of K.S.A. 1997 Supp. 72-6441,
and amendments thereto, and remitted the proceeds from such tax to the state treasurer.
Ancillary school facilities weighting is in addition to assignment of school facilities weighting
to enrollment of any district eligible for such weighting.

Sec. 2. K.S.A. 1997 Supp. 72-6410 is hereby amended to read as follows: 72-6410. (a)
``State financial aid'' means an amount equal to the product obtained by multiplying base
state aid per pupil by the adjusted enrollment of a district.

(b) ``Base state aid per pupil'' means an amount of state financial aid per pupil. Subject
to the other provisions of this subsection, the amount of base state aid per pupil is ~~$3,670~~
$3,720. The amount of base state aid per pupil is subject to reduction commensurate with
any reduction under K.S.A. 75-6704, and amendments thereto, in the amount of the ap-
propriation from the state general fund for general state aid. If the amount of appropriations
for general state aid is insufficient to pay in full the amount each district is entitled to receive
for any school year, the amount of base state aid per pupil for such school year is subject
to reduction commensurate with the amount of the insufficiency.

(c) ``Local effort'' means the sum of an amount equal to the proceeds from the tax levied
under authority of K.S.A. 72-6431, and amendments thereto, and an amount equal to any
unexpended and unencumbered balance remaining in the general fund of the district, except
amounts received by the district and authorized to be expended for the purposes specified
in K.S.A. 72-6430, and amendments thereto, and an amount equal to any unexpended and
unencumbered balances remaining in the program weighted funds of the district, except
any amount in the vocational education fund of the district if the district is operating an
area vocational school, and an amount equal to any remaining proceeds from taxes levied
under authority of K.S.A. 72-7056 and 72-7072, and amendments thereto, prior to the repeal
of such statutory sections, and an amount equal to the amount deposited in the general fund
in the current school year from amounts received in such year by the district under the
provisions of subsection (a) of K.S.A. 72-1046a, and amendments thereto, and an amount
equal to the amount deposited in the general fund in the current school year from amounts
received in such year by the district pursuant to contracts made and entered into under
authority of K.S.A. 72-6757, and amendments thereto, and an amount equal to the amount
credited to the general fund in the current school year from amounts distributed in such
year to the district under the provisions of articles 17 and 34 of chapter 12 of Kansas Statutes
Annotated and under the provisions of articles 42 and 51 of chapter 79 of Kansas Statutes
Annotated, and (1) for districts other than the district created by K.S.A. 72-5333a, and
amendments thereto, an amount equal to 75% of the federal impact aid of a district and (2)
for the district created by K.S.A. 72-5333a, and amendments thereto, an amount equal to
the federal impact aid of the district.

(d) ``Federal impact aid'' means an amount equal to the federally qualified percentage
of the amount of moneys a district receives in the current school year under the provisions
of title I of public law 874 and congressional appropriations therefor, excluding amounts
received for assistance in cases of major disaster and amounts received under the low-rent
housing program. The amount of federal impact aid defined herein as an amount equal to
the federally qualified percentage of the amount of moneys provided for the district under
title I of public law 874 shall be determined by the state board in accordance with terms
and conditions imposed under the provisions of the public law and rules and regulations
thereunder.

Sec. 3. K.S.A. 1997 Supp. 72-6412 is hereby amended to read as follows: 72-6412. The
low enrollment weighting of each district with under ~~1,800~~ 1,750 enrollment shall be de-
termined by the state board as follows:

(a) Determine the amount of the median budget per pupil for the 1991-92 school year
of districts with 75-125 enrollment in such school year;

(b) determine the amount of the median budget per pupil for the 1991-92 school year
of districts with 200-399 enrollment in such school year;

(c) determine the amount of the median budget per pupil for the 1991-92 school year
of districts with 1,900 or over enrollment;

(d) prescribe a schedule amount for each of the districts by preparing a schedule based
upon an accepted mathematical formula and derived from a linear transition between (1)
the median budgets per pupil determined under (a) and (b), and (2) the median budgets
per pupil determined under (b) and (c). The schedule amount for districts with 0-99 en-
rollment is an amount equal to the amount of the median budget per pupil determined
under (a). The schedule amount for districts with 100-299 enrollment is the amount derived
from the linear transition under (1). The schedule amount for districts with 300-1,899 en-
rollment is the amount derived from the linear transition under (2);

(e) for districts with 0-99 enrollment:

(1) Subtract the amount determined under (c) from the amount determined under (a);

(2) divide the remainder obtained under (1) by the amount determined under (c);

(3) multiply the quotient obtained under (2) by the enrollment of the district in the
current school year. The product is the low enrollment weighting of the district;

(f) for districts with 100-299 enrollment:

(1) Subtract the amount determined under (c) from the schedule amount of the district;

(2) divide the remainder obtained under (1) by the amount determined under (c);

(3) multiply the quotient obtained under (2) by the enrollment of the district in the
current school year. The product is the low enrollment weighting of the district;

(g) for districts with ~~300-1,799~~ 300-1,749 enrollment:

(1) Subtract the amount determined under (c) from the schedule amount of the district;

(2) divide the remainder obtained under (1) by the amount determined under (c);

(3) multiply the quotient obtained under (2) by the enrollment of the district in the
current school year. The product is the low enrollment weighting of the district.

Sec. 4. K.S.A. 1997 Supp. 72-6414 is hereby amended to read as follows: 72-6414. The
at-risk pupil weighting of each district shall be determined by the state board by multiplying
the number of at-risk pupils included in enrollment of the district by ~~.065~~ .08. The product
is the at-risk pupil weighting of the district.

Sec. 5. K.S.A. 1997 Supp. 72-6442 is hereby amended to read as follows: 72-6442. The
correlation weighting of each district with ~~1,800~~ 1,750 or over enrollment shall be deter-
mined by the state board as follows:

(a) Determine the schedule amount for a district with ~~1,800~~ 1,750 enrollment as derived
from the linear transition under (d) of K.S.A. 72-6412, and amendments thereto, and sub-
tract the amount determined under (c) of K.S.A. 72-6412, and amendments thereto, from
the schedule amount so determined;

(b) divide the remainder obtained under (a) by the amount determined under (c) of
K.S.A. 72-6412, and amendments thereto, and multiply the quotient by the enrollment of
the district in the current school year. The product is the correlation weighting of the district.

Sec. 6. K.S.A. 1997 Supp. 72-6407, 72-6410, 72-6412, 72-6414 and 72-6442 are hereby
repealed.'';

By renumbering section 14 as section 7;

In the title, by striking all of line 14; in line 15, by striking all before ``amending'' and
inserting ``concerning school district finance; defining and counting preschool-aged at-risk
pupils; affecting determination of at-risk, low enrollment, and correlation weightings;''; in
line 16, by striking all after ``K.S.A.''; in line 17, by striking ``79-32,176, 79-32,195 and 79-
32,197'' and inserting ``1997 Supp. 72-6407, 72-6410, 72-6412, 72-6414 and 72-6442'';

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

Barbara Lawrence

Audrey Langworthy

Christine Downey

Conferees on part of Senate

Eugene L. Shore

Michael R. O'Neal

Bill Reardon

Conferees on part of House

On motion of Rep. O'Neal, the conference committee report on HB 2249 was adopted.

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

Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Burroughs,
Campbell, Carmody, Cook, Correll, Cox, Crow, Dahl, Dean, Dillon, Dreher, Edmonds,
Empson, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Freeborn, Garner,
Geringer, Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett, Helgerson, Hen-
derson, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, John-
son, Johnston, Kejr, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane,
Larkin, M. Long, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie, Mc-
Kinney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Os-
borne, Packer, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers,
Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp,
Shore, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thi-
mesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Wel-
shimer, Wempe, Wilk, Wilson.

Nays: Faber.

Present but not voting: None.

Absent or not voting: Compton.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to Substitute for HB 2950, 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 7, in line 37, after the period, by inserting ``Before approval by the department,
any consultant preparing such plans and specifications shall submit to the department evi-
dence, satisfactory to the department, of adequate general commercial liability insurance
coverage.'';

On page 12, in line 28, by striking ``12'' and inserting ``six'';

On page 15, in line 35, after ``facility'' by inserting ``that has an animal unit capacity of
1,000 or more and'';

On page 16, in line 8, by striking ``12'' and inserting ``six''; in line 42, by striking ``shall
amend its nutrient utilization'' and inserting ``that is required to have a nutrient utilization
plan shall amend such'';

On page 17, in line 4, by striking ``Each swine facility shall maintain its nutrient utilization''
and inserting ``A swine facility that is required to have a nutrient utilization plan shall main-
tain such'';

On page 20, by striking all of line 6; in line 7, by striking ``more'' and inserting ``is required
to have a permit'';

On page 23, in line 38, by striking ``at the discretion of the department'' and inserting ``at
least once during the term of the facility's permit'';

On page 33, after line 4, by inserting:

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

On page 57, in line 15, by striking ``and amendments thereto'' and inserting ``as it existed
before the effective date of this act'';

On page 60, in line 10, after ``K.S.A.'' by inserting ``2-1915,''; in line 11, by striking ``74-
5065'' and inserting ``17-5904, 17-5908, 47-1219, 65-171d, 74-5065, 74-5066, 74-8902, 74-
8905''; also in line 11, by striking all after ``79-32,117''; in line 12, by striking all before the
last comma;

On page 69, in lines 3 and 4, by striking ``and section 38 and amendments thereto'' and
inserting ``, as it existed before the effective date of this act, and section 38''; in line 6, after
``which'' by inserting ``, before the effective date of this act,''; in line 7, by striking ``and
amendments thereto'' and inserting ``, as it existed before the effective date of this act'';
after line 8, by inserting:

``(16) Agricultural land held or leased by a corporation or limited liability company for
use as a swine production facility in any county where the voters, after the effective date of
this act, have voted pursuant to K.S.A. 17-5908, and amendments thereto, to allow estab-
lishment of swine production facilities within the county.'';

Also on page 69, in line 9, by striking ``(16)'' and inserting ``(17)''; in line 14, by striking
``(17)'' and inserting ``(18)''; after line 39, by inserting:

Sec. 45. K.S.A. 17-5908 is hereby amended to read as follows: 17-5908. (a) ~~(1)~~ The
board of county commissioners, by resolution, may ~~permit a~~ submit to the qualified voters
of the county a proposition to allow swine production ~~facility~~ facilities, as defined in K.S.A.
17-5903, and amendments thereto, to be established within the county. ~~Such resolution~~
~~shall be published once each week for two consecutive weeks in the official county news-~~
~~paper. The resolution shall take effect 60 days after final publication unless a valid petition~~
~~in opposition to the same is filed.~~

~~(2) If within 60 days of the final publication of the resolution, a valid protest petition to~~
~~submit the resolution to the qualified voters of the county is signed by qualified electors of~~
~~the county equal in number to not less than 5% of the electors of the county who voted for~~
~~the office of secretary of state at the last preceding general election at which such office~~
~~was elected and is filed with the county election officer~~ Upon adoption of such resolution,
the county election officer shall submit the question of whether a swine production ~~facility~~
facilities shall be allowed to be established in such county at the next state or county-wide
regular or special election.

(b) (1) The board of county commissioners, upon a petition filed in accordance with
paragraph (b)(2), shall submit to the qualified ~~electors~~ voters of the county a proposition to
~~permit a~~ allow swine production ~~facility~~ facilities, as defined in K.S.A. 17-5903, and amend-
ments thereto, to be established within the county.

(2) A petition to submit a proposition to the qualified voters of a county pursuant to
this ~~section~~ subsection (b) shall be filed with the county election officer. The petition shall
be signed by qualified ~~electors~~ voters of the county equal in number to not less than 5% of
the ~~electors~~ voters of the county who voted for the office of secretary of state at the last
preceding general election at which such office was elected. The following shall appear on
the petition:

``We request an election to determine whether a corporate swine production ~~facility~~ fa-
cilities shall be allowed to be established in ____________ c/ounty, pursuant to
K.S.A. 17-5904.''

(3) Upon the submission of a valid petition calling for an election pursuant to this
subsection, the county election officer shall submit the question of whether a swine pro-
duction ~~facility~~ facilities shall be allowed to be established in such county at the next state
or county-wide regular or special election which occurs more than 60 days after the petition
is filed with the county election officer.

(c) If a majority of the votes cast and counted are in opposition to allowing swine pro-
duction facilities to be established in such county, the county election officer shall transmit
a copy of the result to the secretary of state who shall publish in the Kansas register the
result of such election and that swine production facilities are not allowed to be established
in such county.

(d) If a majority of the votes cast and counted is in favor of the proposition, the county
election officer shall transmit a copy of the result to the secretary of state who shall publish
in the Kansas register the result of such election and that swine production facilities are
allowed to be established in such county.

(e) The election provided for by this section shall be conducted, and the votes counted
and canvassed, in the manner provided by law for question submitted elections of the county,
except that the county election officer shall publish in the official county newspaper a notice
of such election once each week for two consecutive weeks, the first publication to be not
less than 21 days before the election, and such notice shall state the date and time of the
election and the proposition that will appear on the ballot.

Sec. 46. K.S.A. 2-1915 is hereby amended to read as follows: 2-1915. (a) Appropriations
may be made for grants out of funds in the treasury of this state for terraces, terrace outlets,
check dams, dikes, ponds, ditches, critical area planting, grassed waterways, tailwater re-
covery irrigation systems, precision land forming, range seeding, detention and grade sta-
bilization structures and other enduring water conservation practices installed on public
lands and on privately owned lands. Except as provided by the multipurpose small lakes
program act, any such grant shall not exceed 80% of the total cost of any such practice.

(b) A program for protection of riparian and wetland areas shall be developed by the
state conservation commission and implemented by the conservation districts. The conser-
vation districts shall prepare district programs to address resource management concerns
of water quality, erosion and sediment control and wildlife habitat as part of the conservation
district long-range and annual work plans. Preparation and implementation of conservation
district programs shall be accomplished with assistance from appropriate state and federal
agencies involved in resource management.

(c) Subject to the provisions of K.S.A. 2-1919, and amendments thereto, any holder of
a water right, as defined by subsection (g) of K.S.A. 82a-701, and amendments thereto, who
is willing to voluntarily return all or a part of the water right to the state shall be eligible for
a grant not to exceed 80% of the total cost of the purchase price for such water right. The
state conservation commission shall administer this cost-share program with funds appro-
priated by the legislature for such purpose. The chief engineer shall certify to the state
conservation commission that any water right for which application for cost-share is received
under this section is eligible in accordance with the criteria established in K.S.A. 2-1919,
and amendments thereto.

(d) (1) Subject to appropriation acts therefor, the state conservation commission shall
develop the Kansas water quality buffer initiative for the purpose of restoring riparian areas
using best management practices. The executive director of the state conservation commission
shall ensure that the initiative is complementary to the federal conservation reserve program.

(2) There is hereby created in the state treasury the Kansas water quality buffer initiative
fund. All expenditures from such fund shall be made in accordance with appropriation acts
upon warrants of the director of accounts and reports issued pursuant to vouchers approved
by the executive director of the state conservation commission or the executive director's
designee. Money credited to the fund shall be used for the purpose of making grants to install
water quality best management practices pursuant to the initiative.

(3) The county or district appraiser shall identify and map riparian buffers consisting
of at least one contiguous acre per parcel of real property located in the appraiser's county.
Notwithstanding any other provisions of law, riparian buffers shall be valued by the county
or district appraiser as tame grass land, native grass land or waste land, as appropriate. As
used in this subsection (3), ``riparian buffer'' means an area of stream-side vegetation that:
(A) Consists of tame or native grass and may include forbs and woody plants; (B) is located
along a perennial or intermittent stream, including the stream bank and adjoining floodplain;
and (C) is a minimum of 66 feet wide and a maximum of 150 feet wide.

~~(d)~~ (e) The state conservation commission shall adopt rules and regulations to administer
such grant and protection programs.

~~(e)~~ (f) Any district is authorized to make use of any assistance whatsoever given by the
United States, or any agency thereof, or derived from any other source, for the planning
and installation of such practices. The state conservation commission may enter into agree-
ments with other state and federal agencies to implement the Kansas water quality buffer
initiative.'';

Also on page 69, by striking all of lines 40 through 43 and inserting:

``Sec. 47. K.S.A. 2-1915, 2-3302, 2-3305, 2-3307, 17-5908, 74-5065, 79-32,117 and
79-32,117i and K.S.A. 1997 Supp. 17-5904, 19-101a, 47-1219, 65-171d, 74-5066, 74-8902
and 74-8905 are hereby repealed.'';

By renumbering sections 46 and 47 as sections 48 and 49;

In the title, in line 14, by striking all after ``concerning''; by striking all of lines 15 through
26; in line 32, before the semicolon, by inserting ``agriculture; relating to regulation of
confined animal feeding facilities; imposing restrictions on construction, operation and ex-
pansion of certain facilities; providing for certain income tax credits; providing for certain
elections on establishment of swine production facilities; relating to eligibility for KIT and
KIR program funds and for issuance of Kansas development finance authority bonds; re-
lating to disposal of certain dead livestock; relating to water quality buffers; amending K.S.A.
2-1915, 2-3302, 2-3305, 2-3307, 17-5908, 74-5065 and 79-32,117 and K.S.A. 1997 Supp.
17-5904, 19-101a, 47-1219, 65-171d, 74-5066, 74-8902 and 74-8950; also repealing K.S.A.
79-32,117i'';

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

David R. Corbin

Stephen R. Morris

Donald E. Biggs

Conferees on part of Senate

Joann Freeborn

Kent Glasscock

Laura McClure

Conferees on part of House

On motion of Rep. Freeborn to adopt the conference committee report on Sub. HB
2950, Rep. Johnston 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 68; Present but not voting: 0; Absent or not
voting: 1.

Yeas: Alldritt, Ballard, Burroughs, Cook, Crow, Dean, Dillon, Edmonds, Faber, Findley,
Flaharty, Flora, Garner, Gilbert, Grant, Gregory, Helgerson, Henry, Howell, Johnston, Kirk,
Klein, Phill Kline, Krehbiel, Kuether, Landwehr, Larkin, Mayans, Mays, McKechnie, Mol-
lenkamp, Morrison, Nichols, Packer, Palmer, Pauls, E. Peterson, Phelps, Pottorff, Powell,
Powers, Reardon, Ruff, Sawyer, Shallenburger, Shultz, Spangler, Swenson, Toelkes, Topli-
kar, Vickrey, Vining, Wagle, Wells, Welshimer.

Nays: Adkins, Allen, Aurand, Ballou, Beggs, Benlon, Boston, Campbell, Carmody, Correll,
Cox, Dahl, Dreher, Empson, Farmer, Feuerborn, Flower, Franklin, Freeborn, Geringer,
Gilmore, Glasscock, Haley, Hayzlett, Henderson, Holmes, Horst, Huff, Humerickhouse,
Hutchins, Jennison, Johnson, Kejr, Phil Kline, Lane, M. Long, P. Long, Mason, McClure,
McCreary, McKinney, Minor, Myers, Neufeld, O'Connor, O'Neal, Osborne, J. Peterson,
Presta, Ray, Reinhardt, Samuelson, Schwartz, Sharp, Shore, Showalter, Shriver, Sloan,
Stone, Storm, Tanner, Thimesch, Tomlinson, Weber, Weiland, Wempe, Wilk, Wilson.

Present but not voting: None.

Absent or not voting: Compton.

The substitute motion did not prevail.

The question then reverted back to the original motion of Rep. Freeborn and the con-
ference committee report was adopted.

On roll call, the vote was: Yeas 76; Nays 47; Present but not voting: 0; Absent or not
voting: 1.

Yeas: Adkins, Allen, Aurand, Ballou, Beggs, Benlon, Boston, Campbell, Carmody, Cook,
Correll, Cox, Dahl, Dreher, Empson, Farmer, Feuerborn, Flower, Franklin, Freeborn, Ger-
inger, Gilmore, Glasscock, Haley, Hayzlett, Holmes, Horst, Howell, Huff, Humerickhouse,
Hutchins, Jennison, Johnson, Kejr, Phil Kline, Phill Kline, Lane, M. Long, P. Long, Mason,
McClure, McCreary, McKinney, Minor, Myers, Neufeld, O'Connor, O'Neal, Osborne,
Packer, Pauls, J. Peterson, Powers, Presta, Ray, Reinhardt, Samuelson, Schwartz, Shallen-
burger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Stone, Tanner, Thimesch, Tomlin-
son, Toplikar, Vickrey, Weber, Weiland, Wempe, Wilk, Wilson.

Nays: Alldritt, Ballard, Burroughs, Crow, Dean, Dillon, Edmonds, Faber, Findley, Fla-
harty, Flora, Garner, Gilbert, Grant, Gregory, Helgerson, Henderson, Henry, Johnston,
Kirk, Klein, Krehbiel, Kuether, Landwehr, Larkin, Mayans, Mays, McKechnie, Mollen-
kamp, Morrison, Nichols, Palmer, E. Peterson, Phelps, Pottorff, Powell, Reardon, Ruff,
Sawyer, Spangler, Storm, Swenson, Toelkes, Vining, Wagle, Wells, Welshimer.

Present but not voting: None.

Absent or not voting: Compton.

EXPLANATIONS OF VOTE Mr. Speaker: I vote ``No'' on Sub. HB 2950. This bill does too little to protect the
environment from the depredations of large swine operations. Further, Sub. HB 2950 does
virtually nothing to secure to the people the right to vote on this extraordinarily sensitive
and controversial issue. I will not be a party to the continuing disenfranchisement of the
electorate. I vote ``No.''--John T. Edmonds, Billie Vining

Mr. Speaker: The House Environment Committee and its sub committee have worked
hard on this bill. Committee leadership made a decision not to consider social, community
or political considerations. Some of those considerations were addressed on the House floor.
The Senate decided to ignore those issues except to cater to a particular Senator's wishes
in Meade County.

Unfortunately we did not consider the tough political questions. I think we can see how
those issues may play out by the example of what happened in Great Bend.

Even though this is an environmentally sound bill I vote no on Sub. HB 2950 because
other important issues were not addressed.--Vaughn L. Flora

Mr. Speaker: I vote no on Sub. HB 2950. Maybe it's the best we can do, more is needed
in future sessions. This bill may lull some into a false sense of security that environmental
issues have been adequately addressed. They have not!

The concerns of Kansans who have voted against corporate hogs are not addressed in this
legislation. These mega-corporations are the antithesis of American agriculture. Huge con-
centrations of hogs in compacted geographic areas of our state will still affect negatively our
soil, water, air, and our quality of life. The decisive vote on this issue will be cast next
November at the ballot box. So be it.--Ethel M. Peterson

Mr. Speaker: I vote ``No'' on Sub. HB 2950. The minimal level of environmental stan-
dards in this bill is nice, but there is more involved here.

Under this bill we continue to move away from farmers supporting their families and
communities to the creation of corporate operated factory farms. This is not my vision for
the future.--Jim D. Garner

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 11, submits the following report:

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

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

Mike Farmer

Henry M. Helgerson, Jr.

Conferees on part of House

Dave Kerr

Stephen R. Morris

Conferees on part of Senate

On motion of Rep. Farmer, the conference committee report on SB 11 was adopted.

Speaker pro tem Wagle thereupon appointed Reps. Farmer, Edmonds and Helgerson as
third conferees on the part of the House.

MOTIONS TO CONCUR AND NONCONCUR

On motion of Rep. Packer, the House concurred in Senate amendments to HB 2759,
An act concerning city elections; relating to qualified electors. (The House requested the
Senate to return the bill, which was in conference).

On roll call, the vote was: Yeas 101; Nays 22; Present but not voting: 0; Absent or not
voting: 1.

Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Burroughs,
Campbell, Cox, Dahl, Dean, Dillon, Dreher, Edmonds, Empson, Farmer, Findley, Flaharty,
Flora, Flower, Franklin, Freeborn, Garner, Geringer, Gilbert, Gilmore, Glasscock, Grant,
Gregory, Haley, Hayzlett, Helgerson, Henderson, Henry, Holmes, Horst, Howell, Huff,
Humerickhouse, Hutchins, Jennison, Johnson, Johnston, Kejr, Phil Kline, Phill Kline,
Kuether, Landwehr, Lane, M. Long, P. Long, Mason, Mayans, McClure, McCreary,
McKechnie, Mollenkamp, Myers, Neufeld, Nichols, O'Neal, Osborne, Packer, Palmer,
Pauls, E. Peterson, J. Peterson, Powell, Powers, Presta, Ray, Reardon, Samuelson, Sawyer,
Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Spangler, Stone,
Storm, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber,
Wells, Welshimer, Wilk, Wilson.

Nays: Carmody, Cook, Correll, Crow, Faber, Feuerborn, Kirk, Klein, Krehbiel, Larkin,
Mays, McKinney, Minor, Morrison, O'Connor, Phelps, Pottorff, Reinhardt, Ruff, Swenson,
Weiland, Wempe.

Present but not voting: None.

Absent or not voting: Compton.

The House stood in recess until 2:30 p.m.

April 10, 1998

______ Afternoon Session
The House met pursuant to recess with Speaker Shallenburger in the chair.

INTRODUCTION OF BILLS AND CONCURRENT RESOLUTIONS

The following concurrent resolution was introduced and read by title:

HOUSE CONCURRENT RESOLUTION No. 5057--

By Representatives Garner and Aurand and Flaharty, Kirk, Krehbiel, McClure, E. Peterson, Phelps, Spangler and Welshimer A CONCURRENT RESOLUTION requesting the state board of education to develop
curriculum teaching proper respect for the flag and urging local boards of education to
implement such curriculum.

WHEREAS, Millions of Americans hold the American flag in deep reverence; and

WHEREAS, The American flag symbolizes the ideas of liberty and equality and what
our nation is and what it values. No other American symbol has been as universally honored
as the American flag; and

WHEREAS, The American flag has served as a rallying force for American fighting men
from Yorktown to the Persian Gulf; and

WHEREAS, Kansans believe that proper respect for the flag of the United States and
flag etiquette should be taught to Kansas school children: Now, therefore,

Be it resolved by the House of Representatives of the State of Kansas, the Senate concurring
therein: That the Legislature requests the State Board of Education to develop curriculum
for Kansas school children in the second, fifth and eighth grade teaching proper respect for
the flag of the United States and flag etiquette; and

Be it further resolved: That the Legislature urges all local boards of education to im-
plement such curriculum; and

Be it further resolved: That the Secretary of State be directed to send enrolled copies
of this resolution to the State Board of Education and to the Commissioner of Education
at 120 S.E. 10th Avenue, Topeka, Kansas 66612-1182.

MESSAGE FROM THE SENATE

Announcing passage of HB 2510, as amended.

Announcing adoption of HCR 5052.

The Senate adopts conference committee report on HB 2724.

The Senate adopts conference committee report on HB 2806.

INTRODUCTION OF ORIGINAL MOTIONS

Pursuant to Joint Rule 3 (f), Rep. Jennison moved that the rules be suspended and that
no copies be printed of the conference committee report on SB 495. The motion prevailed.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 495, 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 21 and inserting in lieu thereof the following:

``Section 1. (a) For the fiscal year ending June 30, 1998, 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 di-
rected or authorized as provided in sections 2 through 62 and sections 162, 171, 174, 177,
185, 186 and 187 of this act.

(b) For the fiscal year ending June 30, 1999, appropriations are hereby made, restric-
tions and limitations are hereby imposed, and transfers, capital improvement projects, fees,
receipts, disbursements and acts incidental to the foregoing are hereby directed or author-
ized as provided in sections 63 through 192 of this act.

(c) 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.

(d) This act shall not be subject to the provisions of subsection (a) of K.S.A. 75-6702
and amendments thereto.'';

On page 7, in line 35, before ``this'' by inserting ``sections 2 through 14 of''; in line 37,
before ``this'' by inserting ``sections 2 through 14 of'';

On page 8, in line 1, before ``this'' by inserting ``sections 3 through 14 of''; following line
4, by inserting the following:

``Sec. 16.

DEPARTMENT OF ADMINISTRATION (a) On the effective date of this act, of the $130,747 appropriated for the above agency
for the fiscal year ending June 30, 1998, by section 45(a) of chapter 123 of the 1997 Session
Laws of Kansas from the state general fund in the policy analysis initiatives account, the
sum of $96,316 is hereby lapsed.

(b) On the effective date of this act, of the $19,113 appropriated for the above agency
for the fiscal year ending June 30, 1998, by section 9(a) of chapter 150 of the 1997 Session
Laws of Kansas from the state general fund in the memorial hall bond anticipation note
account, the sum of $2,555 is hereby lapsed.

(c) On the effective date of this act, the expenditure limitation established for the fiscal
year ending June 30, 1998, by section 45(b) of chapter 123 of the 1997 Session Laws of
Kansas on the state buildings operating fund, is hereby decreased from $11,115,831 to
$10,191,588.

(d) On June 1, 1998, or as soon thereafter as moneys are available, the director of
accounts and reports shall transfer $35,715,096 from the state general fund to the state
budget stabilization fund.

(e) In addition to the other purposes for which expenditures may be made from the
Kansas economic development endowment account of the state economic development
initiatives fund of the department of commerce and housing for the fiscal year ending June
30, 1998, the director of accounts and reports is hereby authorized and directed to pay on
June 15, 1998, or as soon after such date as moneys are available, the following amounts
from the Kansas economic development endowment account of the state economic devel-
opment initiatives fund of the department of commerce and housing, to the following or-
ganizations:

Cosmosphere, Hutchinson, KS

$1,500,000

Boot Hill museum, Front Street, Dodge City, KS 67801

$150,000

Exploration Place, Wichita, KS

$1,500,000

Provided, That the above expenditures for fiscal year 1998 shall be in addition to any ex-
penditure limitation imposed on the Kansas economic development endowment account of
the state economic development initiatives fund or on the state economic development
initiatives fund of the department of commerce and housing.

(f) On June 15, 1998, or as soon thereafter as moneys are available, the director of
accounts and reports shall transfer $3,250,000 from the state general fund to the Kansas
economic development endowment account of the state economic development initiatives
fund of the department of commerce and housing.

Sec. 17.

STATE BANK COMMISSIONER (a) On the effective date of this act, the expenditure limitation established for the fiscal
year ending June 30, 1998, by section 4(a) of chapter 123 of the 1997 Session Laws of
Kansas on the bank commissioner fee fund is hereby decreased from $3,684,553 to
$3,604,322.

Sec. 18.

STATE HISTORICAL SOCIETY (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures

$24,860

(b) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year ending June 30, 1998, all moneys now or hereafter lawfully
credited to and available in such fund or funds, except that expenditures shall not exceed
the following:

EDIF--friends of the free state capitol grant fund

$100,000

Provided, That no expenditures shall be made from the EDIF--friends of the free state
capitol grant fund until a valid purchase agreement that provides for the purchase of the
buildings located at 427-431 South Kansas Avenue in Topeka, KS, has been entered into:
Provided further, That the expenditures from this fund for the purchase of the buildings
located at 427-431 South Kansas Avenue in Topeka, KS, shall not exceed $70,000: And
provided further, That the expenditures from this fund for purposes related to structural
stabilization of the buildings located at 427-431 South Kansas Avenue in Topeka, KS, shall
not be less than $30,000: And provided further, That the buildings located at 427-431 South
Kansas Avenue in Topeka, KS, are not and shall not be considered historic sites under the
control of the state historical society: And provided further, That no expenditures shall be
made from this fund until the state historical society has entered into a signed agreement
with the entity receiving the grant which provides that no additional state funding will be
sought for the buildings at 427-431 South Kansas Avenue in Topeka, KS, for a period of at
least five years.

(c) On the effective date of this act, or as soon thereafter as moneys are available, the
director of accounts and reports shall transfer $100,000 from the Kansas economic devel-
opment endowment account of the state economic development initiatives fund of the de-
partment of commerce and housing to the EDIF--friends of the free state capitol grant
fund of the state historical society.

Sec. 19.

BOARD OF NURSING (a) On the effective date of this act, the expenditure limitation established for the fiscal
year ending June 30, 1998, by section 14(a) of chapter 123 of the 1997 Session Laws of
Kansas on the board of nursing fee fund is hereby increased from $994,300 to $1,019,300.

Sec. 20.

STATE BOARD OF PHARMACY (a) On the effective date of this act, the expenditure limitation established for the fiscal
year ending June 30, 1998, by section 16(a) of chapter 123 of the 1997 Session Laws of
Kansas on the state board of pharmacy fee fund is hereby increased from $463,017 to
$475,967: Provided, That the state board of pharmacy shall begin planning for the inspection
of oxygen distributors as may be required under federal law.

Sec. 21.

KANSAS, INC. (a) On the effective date of this act, the expenditure limitation established by section
52(b) of chapter 123 of the 1997 Session Laws of Kansas on the EDIF fund is hereby
increased from $224,996 to $264,996.

(b) On the effective date of this act, the director of accounts and reports shall transfer
$45,787 from the Kansas economic development endowment account of the state economic
development initiatives fund of the department of commerce and housing to the EDIF fund
of Kansas, Inc.

Sec. 22.

BEHAVIORAL SCIENCES REGULATORY BOARD (a) On the effective date of this act, the expenditure limitation established for the fiscal
year ending June 30, 1998, by section 6(a) of chapter 123 of the 1997 Session Laws of
Kansas on the behavioral sciences regulatory board fee fund is hereby increased from
$363,342 to $380,342.

Sec. 23.

KANSAS PUBLIC EMPLOYEES RETIREMENT SYSTEM (a) On the effective date of this act, the expenditure limitation established by section
40(b) of chapter 123 of the 1997 Session Laws of Kansas on the expenditures for agency
operations from the Kansas public employees retirement fund is hereby reduced from
$4,604,989 to $4,602,665.

(b) On the effective date of this act, the expenditure limitation established by section
40(b) of chapter 123 of the 1997 Session Laws of Kansas on the expenditures for investment
related expenses from the Kansas public employees retirement fund is hereby increased
from $20,151,757 to $22,212,030.

Sec. 24.

KANSAS DENTAL BOARD (a) On the effective date of this act, the expenditure limitation established for the fiscal
year ending June 30, 1998, by section 10(a) of chapter 123 of the 1997 Session Laws of
Kansas on the dental board fee fund is hereby increased from $194,248 to $225,848.

Sec. 25.

DEPARTMENT OF REVENUE (a) On the effective date of this act, the expenditure limitation established by section
2(c) of chapter 192 of the 1997 Session Laws of Kansas on the division on vehicles operating
fund is hereby increased from $28,864,978 to $29,152,237.

(b) On the effective date of this act, the expenditure limitation established by section
2(d) of chapter 192 of the 1997 Session Laws of Kansas on the salaries and wages account
of the division of vehicles operating fund is hereby decreased from $16,780,470 to
$16,210,433.

(c) On the effective date of this act, the expenditure limitation established by section
48(b) of chapter 123 of the 1997 Session Laws of Kansas on the state bingo regulation fund
is hereby increased from $366,786 to $466,044.

(d) On the effective date of this act, the expenditure limitation established by section
48(b) of chapter 123 of the 1997 Session Laws of Kansas on the cigarette/tobacco products
regulation fund is hereby increased from $60,000 to No limit.

(e) In addition to purposes for which expenditures may be made by the above agency
from the operating expenditures account of the state general fund for the fiscal year ending
June 30, 1998, as authorized by section 48(a) of chapter 123 of the 1997 Session Laws of
Kansas, expenditures may be made by the above agency from the operating expenditures
account of the state general fund for fiscal year 1998 for official hospitality: Provided, That
expenditures for such purpose from the operating expenditures account of the state general
fund for fiscal year 1998 shall not exceed $1,500.

(f) In addition to purposes for which expenditures may be made by the above agency
from the special training fund, established pursuant to K.S.A. 79-1478a and amendments
thereto, for the fiscal year ending June 30, 1998, as authorized by section 48(b) of chapter
123 of the 1997 Session Laws of Kansas, expenditures may be made by the above agency
from the special training fund for the fiscal year 1998 for operating expenditures, including
official hospitality, incurred for conferences, training seminars, workshops and examinations:
Provided, That the secretary of revenue is hereby authorized to fix, charge and collect fees
for conferences, training seminars, workshops and examinations sponsored or cosponsored
by the department of revenue: Provided further, That such fees shall be fixed in order to
recover all or part of the operating expenditures incurred for such conferences, training
seminars, workshops and examinations or for qualifying applicants for such conferences,
training seminars, workshops and examinations: And provided further, That all fees received
for conferences, training seminars, workshops, and examinations shall be deposited in the
state treasury and credited to the special training fund.

Sec. 26.

STATE BOARD OF INDIGENTS' DEFENSE SERVICES (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures

$994,396

Sec. 27.

HEALTH CARE STABILIZATION FUND BOARD OF GOVERNORS (a) On the effective date of this act, the expenditure limitation established by section
35(b) of chapter 123 of the 1997 Session Laws of Kansas on the operating expenditures
account of the health care stabilization fund is hereby decreased from $833,019 to $828,295.

(b) In addition to purposes for which expenditures may be made by the above agency
from the operating expenditures account of the health care stabilization fund for the fiscal
year ending June 30, 1998, as authorized by section 35(b) of chapter 123 of the 1997 Session
Laws of Kansas, expenditures may be made by the above agency from the operating ex-
penditures account of the health care stabilization fund for fiscal year 1998 for official
hospitality: Provided, That expenditures for such purpose from the operating expenditures
account of the health care stabilization fund for fiscal year 1998 shall not exceed $300.

Sec. 28.

CITIZENS' UTILITY RATEPAYER BOARD (a) On the effective date of this act, the position limitation established by section 46 of
chapter 123 of the 1997 Session Laws of Kansas for the citizens' utility ratepayer board is
hereby increased from 2.0 to 3.0.

Sec. 29.

DEPARTMENT OF HUMAN RESOURCES (a) There is appropriated for the above agency from the state general fund the following:

Welfare to work grant--state match

$3,334,200

(b) There is appropriated for the above agency from the following special revenue fund
or funds 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:

Welfare to work grant--federal fund

No limit

(c) On the effective date of this act, the expenditure limitation established by section
56(b) of chapter 123 of the 1997 Session Laws of Kansas on the occupational health and
safety--federal fund is hereby increased from $368,731 to $393,000.

(d) On the effective date of this act, the expenditure limitation established by section
56(b) of chapter 123 of the 1997 Session Laws of Kansas on the occupational information
system--federal fund is hereby increased from $106,236 to $169,789.

Sec. 30.

DEPARTMENT OF SOCIAL AND REHABILITATION SERVICES (a) There is appropriated for the above agency from the state general fund the following:

Community based services

$1,953,313

Other medical assistance

$1,071,291

Youth services aid and assistance

$8,916,632

Cash Assistance

$9,715,382

(b) On the effective date of this act, of the $89,919,499 appropriated for the above
agency by section 61(a) of chapter 123 of the 1997 Session Laws of Kansas from the state
general fund in the state operations account, the sum of $8,342,979 is hereby lapsed.

(c) On the effective date of this act, of the $7,770,743 appropriated for the above agency
for the fiscal year ending June 30, 1998, by section 61(a) of chapter 123 of the 1997 Session
Laws of Kansas from the state general fund in the adult care homes account, the sum of
$633,914 is hereby lapsed.

(d) On the effective date of this act, of the $2,553,058 appropriated for the above agency
for the fiscal year ending June 30, 1998, by section 61(a) of chapter 123 of the 1997 Session
Laws of Kansas from the state general fund in the vocational rehabilitation aid and assistance
account, the sum of $146,177 is hereby lapsed.

(e) On the effective date of this act, of the $3,819,106 appropriated for the above agency
for the fiscal year ending June 30, 1998, by section 28(g) of chapter 192 of the 1997 Session
Laws of Kansas from the state general fund in the SB 140 implementation account, the sum
of $613,106 is hereby lapsed.

(f) On the effective date of this act, of the $4,895,705 appropriated for the above agency
for the fiscal year ending June 30, 1998, by section 61(a) of chapter 123 of the 1997 Session
Laws of Kansas from the state general fund in the alcohol and drug abuse services grants
account, the sum of $675,542 is hereby lapsed.

(g) On the effective date of this act, of the $164,588,114 appropriated for the above
agency for the fiscal year ending June 30, 1998, by section 61(a) of chapter 123 of the 1997
Session Laws of Kansas from the state general fund in the mental health and retardation
services aid and assistance and state institutions operations account, the sum of $2,445,979
is hereby lapsed.

(h) On the effective date of this act, the $160,556 appropriated for the above agency
for the fiscal year ending June 30, 1998, by section 61(a) of chapter 123 of the 1997 Session
Laws of Kansas from the state general fund in the adult services aid and assistance account,
is hereby lapsed.

(i) On the effective date of this act, the expenditure limitation established by section
28(k) of chapter 192 of the 1997 Session Laws of Kansas on the social welfare fund is hereby
increased from $47,499,992 to $59,402,687.

(j) On the effective date of this act, the expenditure limitation established by section
61(b) of chapter 123 of the 1997 Session Laws of Kansas on the social services block grant--
federal fund is hereby increased from $23,170,260 to $33,170,260.

(k) On the effective date of this act, the director of accounts and reports shall transfer
$10,000,000 from the temporary assistance to needy families federal fund to the social
services block grant--federal fund.

(l) On the effective date of this act, the expenditure limitation established by section
28(c) of chapter 192 of the 1997 Session Laws of Kansas on the state operations account of
the social services clearing fund is hereby increased from $237,262,031 to $242,359,423.

(m) On the effective date of this act, the expenditure limitation established by section
61(b) of chapter 123 of the 1997 Session Laws of Kansas on the Kansas neurological insti-
tute--foster grandparents program--federal fund is hereby increased from $217,621 to
$270,000.

(n) On the effective date of this act, the expenditure limitation established by section
61(b) of chapter 123 of the 1997 Session Laws of Kansas on the Rainbow mental health
facility fee fund is hereby increased from $96,665 to $116,665.

Sec. 31.

DEPARTMENT ON AGING (a) There is appropriated for the above agency from the state general fund the following:

Administration

$4,812,236

Program grants

$3,693,362

(b) On the effective date of this act, of the $115,409,383 appropriated for the above
agency for the fiscal year ending June 30, 1998, by section 59(a) of chapter 123 of the 1997
Session Laws of Kansas from the state general fund in the long term care account, the sum
of $3,570,528 is lapsed.

(c) There is appropriated for the above agency from the following special revenue fund
or funds 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:

General fees fund

No limit

Provided, That the secretary of aging is hereby authorized to fix, charge and collect fees for
searching, copying and transmitting copies of public records, fees to be paid by employees
for personal long distance calls, postage, faxed messages, copies and other authorized uses
of state property, and fees for other miscellaneous purposes: Provided further, That all
moneys received from such fees or from the sale of surplus property shall be deposited in
the state treasury and credited to the general fees fund: And provided further, That ex-
penditures shall be made from this fund to meet the obligations of the department on aging
or to benefit and meet the mission of the department on aging.

Medical resources and collection fund

No limit

Provided, That all moneys received or collected by the secretary of aging due to medicaid
overpayments shall be deposited in the state treasury and credited to the medical resources
and collection fund: Provided further, That all expenditures from this fund shall be made
for medicaid program-related expenses and used to reduce expenditures from the state
general fund for the medicaid program: And provided further, That all moneys received or
collected by the secretary of aging due to civil penalty assessments against adult care homes
shall be deposited in the state treasury and credited to this fund and expenditures shall be
made to protect the health or property of adult care home residents as required by federal
law.

Sec. 32.

DEPARTMENT OF REVENUE--HOMESTEAD PROPERTY TAX REFUNDS (a) On the effective date of this act, of the $12,000,000 appropriated for the above
agency for the fiscal year ending June 30, 1998, by section 55(a) of chapter 123 of the 1997
Session Laws of Kansas from the state general fund in the homestead tax refunds account,
the sum of $3,259,937 is hereby lapsed.

Sec. 33.

KANSAS COMMISSION ON VETERANS AFFAIRS (a) On the effective date of this act, the expenditure limitation established by section
57(b) of chapter 123 of the 1997 Session Laws of Kansas on the Kansas commission on
veterans affairs fund is hereby increased from $82,000 to $86,762.

(b) On the effective date of this act, the expenditure limitation established by section
57(b) of chapter 123 of the 1997 Session Laws of Kansas on the soldiers' home fee fund is
hereby decreased from $3,379,876 to $3,367,320.

(c) On the effective date of this act, any unencumbered balance in each of the following
accounts of the state institutions building fund is hereby lapsed: Fuel contamination
clean-up.

(d) On the effective date of this act, of the amount of the unencumbered balance in the
water contamination clean-up account of the state institutions building fund appropriated
for the above agency for the fiscal year ending June 30, 1998, by section 60 of chapter 192
of the 1997 Session Laws of Kansas, the sum of $15,572 is hereby lapsed.

Sec. 34.

KANSAS STATE UNIVERSITY VETERINARY MEDICAL CENTER (a) On the effective date of this act, the expenditure limitation established by section
74(b) of chapter 123 of the 1997 Session Laws of Kansas on the general fees fund is hereby
increased from $4,610,221 to $4,615,500.

Sec. 35.

KANSAS STATE UNIVERSITY (a) On the effective date of this act, the expenditure limitation established by section
72(b) of chapter 123 of the 1997 Session Laws of Kansas on the interest on endowment
fund is hereby increased from $75,000 to $154,683.

Sec. 36.

WICHITA STATE UNIVERSITY (a) On or after the effective date of this act and notwithstanding the provisions of section
16(f) of chapter 272 of the 1996 Session Laws of Kansas, upon a finding by the director of
the budget that Wichita state university realized an increase in receipts to the general fees
fund in the summer 1996 session, fall 1996 semester or spring 1997 semester above the
comparable periods in the preceding year, which increase in receipts resulted from increases
in enrollment, changes in resident and nonresident student mix, or the imposition of a more
restrictive tuition waiver policy, the director of the budget shall certify such amount of
increased receipts to the director of accounts and reports. Upon receipt of such certification,
the director of accounts and reports shall transfer the amount certified from the general
fees fund of Wichita state university to the tuition accountability fund of Wichita state
university.

(b) There is appropriated for the above agency from the state general fund the following:

Operating expenditures (including official hospitality)

$222,186

Sec. 37.

UNIVERSITY OF KANSAS MEDICAL CENTER (a) On the effective date of this act, the expenditure limitation established by section
78(b) of chapter 123 of the 1997 Session Laws of Kansas on the medical scholarship and
loan repayment fund is hereby increased from $1,584,528 to $2,334,377.

Sec. 38.

EMPORIA STATE UNIVERSITY (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures (including official hospitality)

$51,393

(b) On the effective date of this act, the expenditure limitation established by section
75(b) of chapter 123 of the 1997 Session Laws of Kansas on the general fees fund is hereby
decreased from $7,981,106 to $7,929,713.

Sec. 39.

FORT HAYS STATE UNIVERSITY (a) On the effective date of this act, of the $26,363,893 appropriated for the above
agency for the fiscal year ending June 30, 1998, by section 71(a) of chapter 123 of the 1997
Session Laws of Kansas from the state general fund in the operating expenditures (including
official hospitality) account, the sum of $170,027 is hereby lapsed.

(b) On the effective date of this act, the expenditure limitation established by section
21(c) of chapter 192 of the 1997 Session Laws of Kansas on the general fees fund is hereby
increased from $7,677,731 to $7,779,177.

Sec. 40.

PITTSBURG STATE UNIVERSITY (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures (including official hospitality)

$115,674

(b) On the effective date of this act, the expenditure limitation established by section
22(c) of chapter 192 of the 1997 Session Laws of Kansas on the general fees fund is hereby
decreased from $9,909,269 to $9,793,595.

Sec. 41.

KANSAS ARTS COMMISSION (a) On the effective date of this act, the expenditure limitation established by section
66(b) of chapter 123 of the 1997 Session Laws of Kansas on the state operations from the
Kansas arts commission gifts, grants and bequests fund is hereby increased from $134,152
to $172,539.

Sec. 42.

JUVENILE JUSTICE AUTHORITY (a) In addition to purposes for which expenditures may be made by the above agency
from the operating expenditures account of the state general fund for the fiscal year ending
June 30, 1998, as authorized by section 39(a) of chapter 192 of the 1997 Session Laws of
Kansas, expenditures may be made by the above agency from the operating expenditures
account of the state general fund for fiscal year 1998 for official hospitality: Provided, That
expenditures for such purpose from the operating expenditures account of the state general
fund for fiscal year 1998 shall not exceed $1,000.

(b) There is appropriated for the above agency from the following special revenue fund
or funds 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:

Larned juvenile correctional facility fee fund

No limit

Sec. 43.

STATE FIRE MARSHAL (a) On the effective date of this act, the expenditure limitation established by section
83(a) of chapter 123 of the 1997 Session Laws of Kansas on the fire marshal fee fund is
hereby decreased from $2,257,241 to $2,236,734.

(b) There is appropriated for the above agency from the following special revenue fund
or funds 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:

Gifts, grants and donations fund

$45,000

Sec. 44.

OMBUDSMAN OF CORRECTIONS (a) There is appropriated for the above agency from the state general fund the following:

Adult corrections oversight

$2,356

Sec. 45.

KANSAS PAROLE BOARD (a) There is appropriated for the above agency from the state general fund the following:

Parole from adult correctional institutions

$2,931

Sec. 46.

ATTORNEY GENERAL--KANSAS BUREAU OF INVESTIGATION (a) On the effective date of this act, the expenditure limitation established by section
86(b) of chapter 123 of the 1997 Session Laws of Kansas on the KBI general fees fund is
hereby increased from $1,264,139 to No limit.

Sec. 47.

KANSAS SENTENCING COMMISSION (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures

$27,926

State matching funds

$89,367

Sec. 48.

KANSAS DEPARTMENT OF AGRICULTURE (a) On the effective date of this act, the expenditure limitation established by section
96(b) of chapter 123 of the 1997 Session Laws of Kansas on the water appropriation certi-
fication fund is hereby decreased from $366,799 to $365,775.

(b) On the effective date of this act, the expenditure limitation established by section
96(b) of chapter 123 of the 1997 Session Laws of Kansas on the water plan special revenue
fund is hereby increased from $975,056 to $1,151,988.

(c) On the effective date of this act, the expenditure limitation established by section
96(b) of chapter 123 of the 1997 Session Laws of Kansas on the pesticide use fee fund is
hereby decreased from $477,539 to $416,010.

(d) On the effective date of this act, the expenditure limitation established by section
3(a) of chapter 192 of the 1997 Session Laws of Kansas on the warehouse fee fund is hereby
increased from $410,105 to $475,898.

(e) On the effective date of this act, the position limitation established by section 3(b)
of chapter 192 of the 1997 Session Laws of Kansas for the Kansas department of agriculture
is hereby decreased from 316.8 to 316.0.

(f) On the effective date of this act, the expenditure limitation established by section
96(b) of chapter 123 of the 1997 Session Laws of Kansas on the fertilizer fee fund is hereby
increased from $476,282 to $526,282.

Sec. 49.

KANSAS WHEAT COMMISSION (a) On the effective date of this act, the expenditure limitation established by section
100(a) of chapter 123 of the 1997 Session Laws of Kansas on the Kansas wheat commission
fund is hereby decreased from $2,586,004 to $2,574,308.

Sec. 50.

STATE FAIR BOARD (a) There is appropriated for the above agency from the state general fund the following:

Storm damage--horse barn razing

$23,000

(b) During fiscal year ending June 30, 1998, the state fair board is hereby authorized
to make expenditures to raze the horse barn, building number 5, at the state fairgrounds in
Hutchinson, Kansas.

(c) On the effective date of this act, the $115,000 appropriated for the above agency
for the fiscal year ending June 30, 1998, by section 99(a) of chapter 123 of the 1997 Session
Laws of Kansas from the state general fund in the operating expenditures account, is hereby
lapsed.

(d) There is appropriated for the above agency from the following special revenue fund
or funds 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:

EDIF--operating expenditures fund

$115,000

Provided, That expenditures from the EDIF--operating expenditures fund for official hos-
pitality shall not exceed $2,000.

(e) On the effective date of this act, or as soon thereafter as moneys are available, the
director of accounts and reports shall transfer $115,000 from the Kansas economic devel-
opment endowment account of the state economic development initiatives fund of the de-
partment of commerce and housing to the EDIF--operating expenditures fund of the state
fair board.

Sec. 51.

STATE CONSERVATION COMMISSION (a) On June 30, 1998, the director of accounts and reports shall transfer the amount
equal to the aggregate of the unencumbered balances as of June 30, 1998, in all accounts
of the water plan special revenue fund of the state conservation commission, which are
lapsed on June 30, 1998, by section 101(d) of chapter 123 of the 1997 Session Laws of
Kansas, from the water plan special revenue fund of the state conservation commission to
the state water plan fund of the Kansas water office.

Sec. 52.

DEPARTMENT OF HEALTH AND ENVIRONMENT (a) On the effective date of this act, the expenditure limitation established by section
58(b) of chapter 123 of the 1997 Session Laws of Kansas on the air quality fee fund is hereby
increased from $3,723,926 to $4,089,544.

(b) On the effective date of this act, the expenditure limitation established by section
58(b) of chapter 123 of the 1997 Session Laws of Kansas on the mined-land conservation
and reclamation fee fund is hereby increased from $90,347 to $101,529.

(c) On the effective date of this act, the expenditure limitation established by section
58(b) of chapter 123 of the 1997 Session Laws of Kansas on the insurance statistical plan
fund is hereby increased from $298,057 to $329,385.

(d) On the effective date of this act, the expenditure limitation established by section
58(b) of chapter 123 of the 1997 Session Laws of Kansas on the solid waste management
fund is hereby increased from $5,387,791 to $5,760,975.

(e) On the effective date of this act, the expenditure limitation established by section
58(b) of chapter 123 of the 1997 Session Laws of Kansas on the public water supply fee
fund is hereby increased from $207,426 to $246,508.

(f) On the effective date of this act, the expenditure limitation established by section
58(b) of chapter 123 of the 1997 Session Laws of Kansas on the waste tire management
fund is hereby increased from $1,201,433 to $1,253,309.

(g) On the effective date of this act, the expenditure limitation established by section
58(b) of chapter 123 of the 1997 Session Laws of Kansas on the aboveground petroleum
storage tank release trust fund is hereby increased from $1,417,686 to $1,433,117.

(h) On the effective date of this act, the expenditure limitation established by section
58(b) of chapter 123 of the 1997 Session Laws of Kansas on the underground petroleum
storage tank release fund is hereby increased from $19,996,713 to $20,233,041.

(i) On the effective date of this act, the expenditure limitation established by section
58(b) of chapter 123 of the 1997 Session Laws of Kansas on the drycleaning facility release
trust fund is hereby increased from $1,310,254 to $1,327,447.

(j) There is appropriated for the above agency from the state general fund the following:

AIDS medication shortfall

$235,000

Year 2000 computer repair

$1,106,158

(k) There is appropriated for the above agency from the following special revenue fund
or funds 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:

Child care facilities licensure fund

$1,000,000

(l) On and after the effective date of this act, all expenditures from the aid to local units
account or the AIDS medication shortfall account of the state general fund shall be subject
to the condition that each individual who is currently on AIDS drug assistance shall continue
to receive AIDS drug assistance and shall not be denied such AIDS drug assistance: Pro-
vided, further, That the secretary of health and environment shall administer all such ex-
penditures so that such condition is fully complied with by the recipients of moneys in the
aid to local units account or the AIDS medication shortfall account of the state general
fund.

Sec. 53.

ADJUTANT GENERAL (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures

$45,800

Sec. 54.

INSURANCE DEPARTMENT (a) In addition to the purposes for which expenditures may be made by the above agency
from the senior health insurance counseling for Kansans fund for the fiscal year ending June
30, 1998, as authorized by section 19(a) of chapter 151 of the 1997 Session laws of Kansas,
expenditures may be made by the above agency from the senior health insurance counseling
for Kansans fund for official hospitality: Provided, That expenditures from the senior health
insurance counseling for Kansans fund for fiscal year 1998 for official hospitality shall not
exceed $750.

Sec. 55.

KANSAS LOTTERY (a) On the effective date of this act, the position limitation established by section 54(a)
of chapter 123 of the 1997 Session Laws of Kansas for the Kansas lottery is hereby decreased
from 95.0 to 89.0.

(b) On the effective date of this act, the expenditure limitation established by section
49(a) of chapter 123 of the 1997 Session Laws of Kansas on the expenditures from the
lottery operating fund is hereby decreased from $8,171,243 to $8,059,908.

Sec. 56.

KANSAS RACING AND GAMING COMMISSION (a) On the effective date of this act, the position limitation established by section 54 of
chapter 123 of the 1997 Session Laws of Kansas for the Kansas racing and gaming com-
mission--state racing operations is hereby increased from 39.0 to 42.0.

(b) On the effective date of this act, the position limitation established by section 54(a)
of chapter 123 of the 1997 Session Laws of Kansas for the Kansas racing and gaming
commission--state gaming agency is hereby increased from 13.0 to 17.0.

Sec. 57.

JUDICIAL BRANCH (a) In addition to the other purposes for which expenditures may be made by the above
agency from the permanent families account of the family and children investment fund for
the fiscal year ending June 30, 1998, as authorized by section 56(b) of chapter 192 of the
1997 Session Laws of Kansas, expenditures may be made by the above agency from the
permanent families account of the family and children investment fund for fiscal year 1998
for compensation, subsistence allowances, mileage and other expenses for legislative mem-
bers of the permanent families account advisory committee as provided in K.S.A. 75-3223
and amendments thereto.

Sec. 58.

STATE BOARD OF TAX APPEALS (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures

$31,118

(b) On the effective date of this act, the expenditure limitation imposed by section 47(a)
of chapter 123 of the 1997 Session Laws of Kansas on the expenditures from the reappro-
priated balance in the operating expenditures account of the state general fund is hereby
increased from $215,153 to $248,965.

Sec. 59. (a) On the effective date of this act, the director of accounts and reports shall
transfer the following amounts from the federal grant contracts clearing fund to the funds
specified therefor: (1) The sum of $200,000 to the state general fund, (2) the sum of $300,000
to the Kansas educational building fund, and (3) the sum of $100,000 to the state institutions
building fund.

(b) Upon completion of the transfers prescribed by this section, the federal grant con-
tracts clearing fund is hereby abolished.

Sec. 60.

DEPARTMENT OF TRANSPORTATION (a) On the effective date of this act, the position limitation established by section 42(a)
of chapter 192 of the 1997 Session Laws of Kansas for the above agency is hereby decreased
from 3,139.5 to 3,129.5.

(b) On the effective date of this act, the expenditure limitation established by section
105(b) of chapter 123 of the 1997 Session Laws of Kansas on the expenditures for the above
agency from the agency operations account of the state highway fund is hereby decreased
from $194,558,963 to $194,307,525.

Sec. 61.

DEPARTMENT OF COMMERCE AND HOUSING (a) In accordance with the provisions of section 51(d) of chapter 123 of the 1997 Session
Laws of Kansas and the provisions of this section, the secretary of commerce and housing
shall disburse the grant to the Mid-America world trade center located in Wichita, Kansas,
from the Kansas economic development endowment account of the state economic devel-
opment initiatives fund in the amount of $50,000: Provided, That such grant shall be dis-
bursed with only the requirement that an annual report of activities of the Mid-America
world trade center shall be provided to the joint committee on economic development prior
to the commencement of the 1999 regular session of the legislature: Provided further, That
such grant shall be disbursed directly to the Mid-America world trade center without any
additional requirements or further procedures.

Sec. 62.

ATTORNEY GENERAL (a) On the effective date of this act, of the $3,219,655 appropriated for the above agency
for the fiscal year ending June 30, 1998, by section 31(a) of chapter 123 of the 1997 Session
Laws of Kansas from the state general fund in the operating expenditures account, the sum
of $200,000 is hereby lapsed.

Sec. 63.

ABSTRACTERS' BOARD OF EXAMINERS (a) On July 1, 1998, the expenditure limitation established for the fiscal year ending
June 30, 1999, by section 2(a) of chapter 123 of the 1997 Session Laws of Kansas on the
abstracters' fee fund is hereby increased from $19,013 to $19,119.

Sec. 64.

BOARD OF ACCOUNTANCY (a) On July 1, 1998, the expenditure limitation established for the fiscal year ending
June 30, 1999, by section 3(a) of chapter 123 of the 1997 Session Laws of Kansas on the
board of accountancy fee fund is hereby increased from $177,584 to $178,964.

Sec. 65.

STATE BANK COMMISSIONER (a) On July 1, 1998, the expenditure limitation established for the fiscal year ending
June 30, 1999, by section 4(a) of chapter 123 of the 1997 Session Laws of Kansas on the
bank commissioner fee fund is hereby decreased from $3,842,198 to $3,803,313.

(b) On July 1, 1998, the position limitation established for the fiscal year ending June
30, 1999, by section 22 of chapter 123 of the 1997 Session Laws of Kansas for the state
bank commissioner is hereby decreased from 72.0 to 70.0.

Sec. 66.

KANSAS BOARD OF BARBERING (a) On July 1, 1998, the expenditure limitation established for the fiscal year ending
June 30, 1999, by section 5(a) of chapter 123 of the 1997 Session Laws of Kansas on the
barber examiner fee fund is hereby increased from $105,736 to $106,371.

Sec. 67.

BEHAVIORAL SCIENCES REGULATORY BOARD (a) On July 1, 1998, the expenditure limitation established for the fiscal year ending
June 30, 1999, by section 6(a) of chapter 123 of the 1997 Session Laws of Kansas on the
behavioral sciences regulatory board fee fund is hereby increased from $371,612 to
$374,780.

Sec. 68.

STATE BOARD OF HEALING ARTS (a) On July 1, 1998, the expenditure limitation established for the fiscal year ending
June 30, 1999, by section 41(b) of chapter 192 of the 1997 Session Laws of Kansas on the
healing arts fee fund is hereby increased from $1,671,279 to $1,679,884.

Sec. 69.

KANSAS STATE BOARD OF COSMETOLOGY (a) On July 1, 1998, the expenditure limitation established for the fiscal year ending
June 30, 1999, by section 8(a) of chapter 123 of the 1997 Session Laws of Kansas on the
cosmetology fee fund is hereby increased from $493,822 to $498,100.

Sec. 70.

STATE DEPARTMENT OF CREDIT UNIONS (a) On July 1, 1998, the expenditure limitation established for the fiscal year ending
June 30, 1999, by section 9(a) of chapter 123 of the 1997 Session Laws of Kansas on the
credit union fee fund is hereby increased from $768,491 to $777,140.

Sec. 71.

KANSAS DENTAL BOARD (a) On July 1, 1998, the expenditure limitation established for the fiscal year ending
June 30, 1999, by section 10(a) of chapter 123 of the 1997 Session Laws of Kansas on the
dental board fee fund is hereby increased from $195,495 to $219,707.

Sec. 72.

STATE BOARD OF MORTUARY ARTS (a) On July 1, 1998, the expenditure limitation established for the fiscal year ending
June 30, 1999, by section 11(a) of chapter 123 of the 1997 Session Laws of Kansas on the
mortuary arts fee fund is hereby increased from $186,409 to $188,566.

Sec. 73.

KANSAS BOARD OF EXAMINERS IN FITTING AND DISPENSING OF HEARING AIDS (a) On July 1, 1998, the expenditure limitation established for the fiscal year ending
June 30, 1999, by section 12(a) of chapter 123 of the 1997 Session Laws of Kansas on the
hearing aid board fee fund is hereby increased from $14,428 to $14,499.

Sec. 74.

CONSUMER CREDIT COMMISSIONER (a) On July 1, 1998, the expenditure limitation established for the fiscal year ending
June 30, 1999, by section 13(a) of chapter 123 of the 1997 Session Laws of Kansas on the
consumer credit fee fund is hereby increased from $398,566 to $405,411.

Sec. 75.

BOARD OF NURSING (a) On July 1, 1998, the expenditure limitation established for the fiscal year ending
June 30, 1999, by section 14(a) of chapter 123 of the 1997 Session Laws of Kansas on the
board of nursing fee fund is hereby increased from $986,191 to $1,171,391.

Sec. 76.

BOARD OF EXAMINERS IN OPTOMETRY (a) On July 1, 1998, the expenditure limitation established for the fiscal year ending
June 30, 1999, by section 15(a) of chapter 123 of the 1997 Session Laws of Kansas on the
optometry fee fund is hereby increased from $82,686 to $83,020.

Sec. 77.

STATE BOARD OF PHARMACY (a) On July 1, 1998, the expenditure limitation established for the fiscal year ending
June 30, 1999, by section 16(a) of chapter 123 of the 1997 Session Laws of Kansas on the
state board of pharmacy fee fund is hereby increased from $474,077 to $492,276: Provided,
That the state board of pharmacy shall begin planning for the inspection of oxygen distrib-
utors as may be required under federal law.

Sec. 78.

REAL ESTATE APPRAISAL BOARD (a) On July 1, 1998, the expenditure limitation established for the fiscal year ending
June 30, 1999, by section 17(a) of chapter 123 of the 1997 Session Laws of Kansas on the
appraiser fee fund is hereby increased from $172,490 to $174,693.

Sec. 79.

KANSAS REAL ESTATE COMMISSION (a) On July 1, 1998, the expenditure limitation established for the fiscal year ending
June 30, 1999, by section 18(a) of chapter 123 of the 1997 Session Laws of Kansas on the
real estate fee fund is hereby increased from $614,525 to $620,926.

Sec. 80.

OFFICE OF THE SECURITIES COMMISSIONER OF KANSAS (a) On July 1, 1998, the expenditure limitation established for the fiscal year ending
June 30, 1999, by section 32(d) of chapter 192 of the 1997 Session Laws of Kansas on the
securities act fee fund is hereby increased from $1,745,254 to $1,798,564.

Sec. 81.

STATE BOARD OF TECHNICAL PROFESSIONS (a) On July 1, 1998, the expenditure limitation established for the fiscal year ending
June 30, 1999, by section 34(c) of chapter 192 of the 1997 Session Laws of Kansas on the
technical professions fee fund is hereby increased from $464,303 to $469,318.

Sec. 82.

STATE BOARD OF VETERINARY EXAMINERS (a) On July 1, 1998, the expenditure limitation established for the fiscal year ending
June 30, 1999, by section 21(a) of chapter 123 of the 1997 Session Laws of Kansas on the
veterinary examiners fee fund is hereby increased from $221,612 to $244,153.

(b) On July 1, 1998, the position limitation established for the fiscal year ending June
30, 1999, by section 22 of chapter 123 of the 1997 Session Laws of Kansas for the state
board of veterinary examiners is hereby increased from 2.0 to 3.0.

Sec. 83. Kansas savings incentive program. (a) In addition to other expenditures au-
thorized by law, expenditures may be made for fiscal year 1999 from any account of the
state general fund reappropriated by this or any other appropriation act of the 1998 regular
session of the legislature for fiscal year 1999 for any state agency named in section 22 of
chapter 123 of the 1997 Session Laws of Kansas for the following purposes: (1) Salary bonus
payments to permanent full-time or regular part-time employees of the state agency at the
discretion of the agency head, (2) purchase or other acquisition of technology equipment
which was included in the budget estimates for fiscal year 1999 submitted by the state agency
pursuant to K.S.A. 75-3717 and amendments thereto, and (3) professional development
training including official hospitality: Provided, however, That the total of all such expend-
itures from such account of the state general fund for fiscal year 1999 shall not exceed the
amount equal to 50% of the amount of the unencumbered balance as of the June 30, 1998;
in such account of the state general fund that is reappropriated for fiscal year 1999 and that
is in excess of the amount authorized to be expended for fiscal year 1999 from such reap-
propriated balance, as determined by the director of accounts and reports: Provided further,
That the total gross amount of any such salary bonus payments to any individual employee
during fiscal year 1999 that are paid under subsection (b) or this subsection shall not exceed
$1,000: And provided further, That the provisions of this subsection shall apply only to that
portion of any such account from which expenditures may be made for state operations:
And provided further, That all such expenditures from the reappropriated balance in any
such account for fiscal year 1999 shall be in addition to any expenditure limitation imposed
on expenditures from the reappropriated balance in any such account for fiscal year 1999.

(b) In addition to other expenditures authorized by law, expenditures may be made for
fiscal year 1999 from any special revenue fund appropriated by this or any other appropri-
ation act of the 1998 regular session of the legislature for fiscal year 1999 for a state agency
named in section 22 of chapter 123 of the 1997 Session Laws of Kansas for the following
purposes: (1) Salary bonus payments to permanent full-time or regular part-time employees
of the state agency at the discretion of the agency head, (2) purchase or other acquisition
of technology equipment which was included in the budget estimates for fiscal year 1999
submitted by the state agency pursuant to K.S.A. 75-3717 and amendments thereto, and (3)
professional development training including official hospitality: Provided, That all such ex-
penditures from such fund for fiscal year 1999 shall be in addition to any expenditure
limitation imposed on such fund or any account thereof for fiscal year 1999: Provided,
however, That the total amount of such expenditures from such fund for fiscal year 1999
shall not exceed the amount equal to 50% of the unexpended portion of the amount au-
thorized to be expended from such fund for fiscal year 1998 for state operations, as deter-
mined by the director of accounts and reports, or, in the case of no limit appropriations, as
determined by the director of the budget: Provided further, That the total gross amount of
any such salary bonus payments to any individual employee during fiscal year 1999 that are
paid under subsection (a) or this subsection shall not exceed $1,000: And provided further,
That the provisions of this subsection shall apply only to: (1) That portion of the moneys in
each account of a special revenue fund from which portion expenditures may be made for
state operations, and (2) that portion of the moneys in a special revenue fund, that does not
have any such accounts specified in this or other appropriation act, from which portion
expenditures may be made for state operations.

(c) (1) Any unencumbered balance in excess of $100 as of June 30, 1998, in any account
of any special revenue fund of any state agency named in section 22 of chapter 123 of the
1997 Session Laws of Kansas, which was appropriated by section 110 of chapter 123 of the
1997 Session Laws of Kansas and which is not otherwise specifically appropriated or limited
by this or other appropriation act of the 1998 regular session of the legislature, is hereby
appropriated for the fiscal year ending June 30, 1999, and may be expended for fiscal year
1999 for the purposes authorized in subsections (a) and (b). All expenditures from any such
account of any such special revenue fund shall be in addition to any expenditure limitation
imposed on such special revenue fund for fiscal year 1999.

(2) On July 1, 1998, each Kansas quality management account and each KQM expend-
iture account of the state general fund and each Kansas quality management account and
each KQM expenditure account of any special revenue fund reappropriated by this subsec-
tion (c) are hereby redesignated as Kansas savings incentive accounts.

(d) No salary bonus payment paid pursuant to this section during fiscal year 1999 shall
be compensation, within the meaning of K.S.A. 74-4901 et seq., and amendments thereto,
for any purpose under the Kansas public employees retirement system and shall not be
subject to deductions for employee contributions thereunder. Each salary bonus payment
paid under this section shall be a bonus, as defined by 29 C.F.R. 778, and shall be in addition
to the regular earnings which that employee may be entitled or for which the employee may
become eligible.

Sec. 84.

LEGISLATIVE COORDINATING COUNCIL (a) There is appropriated for the above agency from the state general fund the following:

Legislative coordinating council--operations

$558,063

Provided, That any unencumbered balance in the legislative coordinating council--opera-
tions account in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal year
1999.

Legislative research department--operations

$2,271,567

Provided, That any unencumbered balance in the legislative research department--opera-
tions account in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal year
1999.

Office of revisor of statutes--operations

$2,053,047

Provided, That any unencumbered balance in the office of revisor of statutes--operations
account in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999.

Sec. 85.

LEGISLATURE (a) There is appropriated for the above agency from the state general fund the following:

Operations (including official hospitality)

$13,725,565

Provided, That any unencumbered balance in the operations (including official hospitality)
account in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999:
Provided further, That expenditures may be made from this account, pursuant to vouchers
approved by the chairperson or vice-chairperson of the legislative coordinating council, to
pay compensation and travel expenses and subsistence expenses or allowances as authorized
by K.S.A. 75-3212 and amendments thereto for members and associate members of the
advisory committee to the Kansas commission on interstate cooperation established under
K.S.A. 46-407a and amendments thereto for attendance at meetings of the advisory com-
mittee which are authorized by the legislative coordinating council, except that (1) the
legislative coordinating council may establish restrictions or limitations, or both, on travel
expenses, subsistence expenses or allowances, or any combination thereof, paid to members
and associate members of such advisory committee, and (2) any person who is an associate
member of such advisory committee, by reason of such person having been accredited by
the national conference of commissioners on uniform state laws as a life member of that
organization, shall receive the same travel expenses and subsistence expenses for attendance
at meetings of the advisory committee as a regular member, but shall receive no per diem
compensation: And provided further, That expenditures may be made from this account for
services, facilities and supplies provided for legislators in addition to those provided under
the approved budget and for related copying, facsimile transmission and other services
provided to persons other than legislators, in accordance with policies and any restrictions
or limitations prescribed by the legislative coordinating council.

(b) There is appropriated for the above agency from the following special revenue fund
or funds all moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:

Legislative special revenue fund

No limit

Provided, That expenditures may be made from the legislative special revenue fund, pur-
suant to vouchers approved by the chairperson or the vice-chairperson of the legislative
coordinating council, to pay compensation and travel expenses and subsistence expenses or
allowances as authorized by K.S.A. 75-3212 and amendments thereto for members and
associate members of the advisory committee to the Kansas commission on interstate co-
operation established under K.S.A. 46-407a and amendments thereto for attendance at
meetings of the advisory committee which are authorized by the legislative coordinating
council, except that (1) the legislative coordinating council may establish restrictions or
limitations, or both, on travel expenses, subsistence expenses or allowances, or any combi-
nation thereof, paid to members and associate members of such advisory committee, and
(2) any person who is an associate member of such advisory committee, by reason of such
person having been accredited by the national conference of commissioners on uniform
state laws as a life member of that organization, shall receive the same travel expenses and
subsistence expenses for attendance at meetings of the advisory committee as a regular
member, but shall receive no per diem compensation: Provided further, That expenditures
may be made from this fund for services, facilities and supplies provided for legislators in
addition to those provided under the approved budget and for related copying, facsimile
transmission and other services provided to persons other than legislators, in accordance
with policies and any restrictions or limitations prescribed by the legislative coordinating
council: And provided further, That amounts are hereby authorized to be collected for such
services, facilities and supplies in accordance with policies of the council: And provided
further, That such amounts shall be fixed in order to recover all or part of the expenses
incurred for providing such services, facilities and supplies and shall be consistent with
policies and fees established in accordance with K.S.A. 46-1207a and amendments thereto:
And provided further, That all such amounts received shall be deposited in the state treasury
to the credit of the legislative special revenue fund.

(c) In addition to the other purposes for which expenditures may be made by the above
agency from the moneys appropriated from the state general fund or in the legislative special
revenue fund for fiscal year 1999 by this or other appropriation act of the 1998 regular
session of the legislature, expenditures shall be made by the above agency from the moneys
appropriated from the state general fund or in the legislative special revenue fund for fiscal
year 1999 for the SRS transition oversight committee which was established by K.S.A. 1997
Supp. 46-2701, which is composed of 12 members and which is hereby specifically continued
in existence for fiscal year 1999, notwithstanding any provisions of K.S.A. 1997 Supp. 46-
2701 to the contrary, in accordance with this subsection: Provided, That the terms of office
of all members of the SRS transition oversight committee serving on June 30, 1998, are
hereby continued until January 11, 1999, and the terms of office of the chairperson and the
vice-chairperson serving in such offices on June 30, 1998, are hereby continued until January
11, 1999: Provided further, That, on or after January 11, 1999, (1) three members of the
house of representatives who are members of the committee on appropriations, two who
are members of the majority party and one who is a member of the minority party, shall be
appointed by the chairperson of the committee on appropriations as members of the SRS
transition oversight committee for terms ending on June 30, 1999, (2) three members of
the senate who are members of the committee on ways and means, two who are members
of the majority party and one who is a member of the minority party, shall be appointed by
the chairperson of the committee on ways and means as members of the SRS transition
oversight committee for terms ending on June 30, 1999, (3) three members of the house of
representatives who are members of the committee on health and human services, two who
are members of the majority party and one who is a member of the minority party, shall be
appointed by the speaker of the house of representatives as members of the SRS transition
oversight committee for terms ending on June 30, 1999, and (4) three members of the
senate who are members of the committee on public health and welfare, two who are
members of the majority party and one who is a member of the minority party, shall be
appointed by the president of the senate as members of the SRS transition oversight com-
mittee for terms ending on June 30, 1999: And provided further, That for the period from
January 11, 1999, through June 30, 1999, the chairperson of the SRS transition oversight
committee shall be a senator appointed by the chairperson of the committee on ways and
means and the vice-chairperson of the SRS transition oversight committee shall be a rep-
resentative who is appointed by the chairperson of the committee on appropriations: And
provided further, That if a vacancy occurs in the office of any member of the SRS transition
oversight committee, a successor shall be appointed in the same manner as the original
appointment: And provided further, That the SRS transition oversight committee shall meet
on call of the chairperson and all such meetings shall be held in Topeka unless authorized
to be held in a different place by the legislative coordinating council: And provided further,
That members of the SRS transition oversight committee shall receive compensation and
travel expenses and subsistence expenses or allowances as provided in K.S.A. 75-3212 and
amendments thereto when attending meetings of such committee: And provided further,
That the SRS transition oversight committee shall have the following duties:

(1) The SRS transition oversight committee shall monitor implementation of the trans-
fer of long-term care programs from the secretary of social and rehabilitation services to
the secretary of aging; the committee shall specifically examine transfer cost neutrality and
the need for additional funding to finance transition costs; the oversight committee shall
ensure that the transfer of the long-term care programs does not lead to a loss of services
by consumers;

(2) the SRS transition oversight committee (A) shall monitor, review and make rec-
ommendations relating to privatization efforts at the state hospitals, the closure of hospital
beds, the downsizing of staff, the closure of Topeka state hospital and Winfield state hospital
and training center, the funding of community services and the availability of adequate
community services, and (B) shall monitor and review preparation of the evaluation of the
hospital closure process which emphasizes how the process might be improved if additional
closure efforts are necessary in future years;

(3) the SRS transition oversight committee shall monitor, review and make recommen-
dations relating to (A) privatization of children and youth service programs of the depart-
ment of social and rehabilitation services including family preservation, foster care, adoption
and child support collection programs, (B) privatization of any other programs of the de-
partment of social and rehabilitation services, and (C) privatization of any programs of the
department on aging;

(4) the SRS transition oversight committee shall monitor, review and make recommen-
dations relating to federal social welfare reform laws and the regulations and policies im-
plementing such laws and the activities of the department of social and rehabilitation services
relating to federal laws, regulations and policies;

(5) the SRS transition oversight committee shall:

(A) Prepare an interim report on findings and recommendations which shall be provided
to the legislature on or before the first day of the regular session of the legislature in 1999;

(B) prepare a final report on findings and recommendations which shall be provided to
the legislative coordinating council on or before June 30, 1999; and

(C) prepare an additional interim report relating to how the closure process could be
improved, including recommendations for improvements in the closure process should clo-
sure of similar institutions occur in future years, to be presented separately on or before
the first day of the regular session of the legislature in 1999, and to prepare an additional
final report on such issues to be presented separately to the legislative coordinating council
on or before June 30, 1999: And provided further, That the SRS transition oversight com-
mittee is hereby abolished on June 30, 1999.

Sec. 86.

DIVISION OF POST AUDIT (a) There is appropriated for the above agency from the state general fund the following:

Operations (including legislative post audit committee)

$1,492,450

Provided, That any unencumbered balance in the operations (including legislative post audit
committee) account in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal
year 1999.

(b) There is appropriated for the above agency from the following special revenue fund
or funds all moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:

Audit services fund

No limit

Provided, That the division of post audit is hereby authorized to fix, charge and collect fees
for copies of public records of the division, including distribution of such copies: Provided
further, That such fees shall be fixed to recover all or part of the expenses incurred for
reproducing and distributing such copies and shall be consistent with policies and fees
established in accordance with K.S.A. 46-1207a and amendments thereto: And provided
further, That all moneys received for such fees shall be deposited in the state treasury to
the credit of the audit services fund: And provided further, That all moneys received by the
division of post audit during fiscal year 1999 from the department of social and rehabilitation
services under the contract entered into by the post auditor and the secretary of social and
rehabilitation services pursuant to section 71(a) of chapter 292 of the 1993 Session Laws of
Kansas to reimburse all or part of the operating services incurred by the division of post
audit for the performance audit related to a settlement agreement regarding Sheila A., et
al. v. Joan Finney, et al., Case No. 89-CV-33, Shawnee County District Court, shall be
credited to the audit services fund.

Conversion of materials and equipment fund

No limit

State agency audits fund

No limit

Sec. 87.

GOVERNOR'S DEPARTMENT (a) There is appropriated for the above agency from the state general fund the following:

Governor's department

$1,804,157

Provided, That any unencumbered balance in the governor's department account in excess
of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999: Provided further,
That expenditures may be made from this account for contingencies without limitation at
the discretion of the governor.

(b) Expenditures may be made by the above agency for travel expenses of the governor's
spouse when accompanying the governor or when representing the governor on official state
business, for travel and subsistence expenditures for security personnel when traveling with
the governor and for entertainment of officials and other persons as guests from the amount
appropriated for the fiscal year ending June 30, 1999, by subsection (a) from the state general
fund in the governor's department account.

(c) There is appropriated for the above agency from the following special revenue fund
or funds all moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:

Conversion of materials and equipment fund

No limit

Sec. 88.

LIEUTENANT GOVERNOR (a) There is appropriated for the above agency from the state general fund the following:

Operations

$100,556

Provided, That any unencumbered balance in the operations account in excess of $100 as
of June 30, 1998, is hereby reappropriated for fiscal year 1999.

(b) Expenditures may be made by the above agency for travel expenses of the lieutenant
governor's spouse when accompanying the lieutenant governor on official state business and
for travel and subsistence expenditures for security personnel when traveling with the lieu-
tenant governor on official state business from the amount appropriated by subsection (a)
from the state general fund for the fiscal year ending June 30, 1999, in the operations
account.

(c) Expenditures may be made by the above agency for official hospitality from the
amount appropriated by subsection (a) from the state general fund for the fiscal year ending
June 30, 1999, in the operations account, except that such expenditures shall not exceed
$2,000.

Sec. 89.

ATTORNEY GENERAL (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures

$3,366,433

Provided, That any unencumbered balance in the operating expenditures account in excess
of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999: Provided further,
That expenditures from this account for official hospitality shall not exceed $600: And pro-
vided further, That expenditures may be made from this account to reimburse the depart-
ment of administration for the services or to pay the salary and benefits of an architect for
the purpose of providing ongoing technical consultation to the attorney general in overseeing
enforcement of the architectural accessibility standards act, K.S.A. 58-1301 et seq. and
amendments thereto: And provided further, That the office of attorney general and the
department of administration are hereby authorized to enter into an agreement for the
provisions of such architectural services: And provided further, That the architect assigned
by the department of administration to provide such services to the attorney general shall
be considered an employee of the department of administration for all purposes, except that
the supervision of the duties of such architect may be governed by the agreement between
the attorney general and the department of administration.

Litigation costs

$80,443

Provided, That any unencumbered balance in the litigation costs account in excess of $100
as of June 30, 1998, is hereby reappropriated for fiscal year 1999.

Additional operating expenditures for investigation and litigation regard-ing interstate water rights

$938,423

Provided, That any unencumbered balance in excess of $100 as of June 30, 1998, in the
additional operating expenditures for investigation and litigation regarding interstate water
rights account is hereby reappropriated for fiscal year 1999.

Any unencumbered balance in excess of $100 as of June 30, 1998, in each of the following
accounts is hereby reappropriated for fiscal year 1999: Operating expenditures relating to
interstate water rights regarding the Republican river and its tributaries.

(b) There is appropriated for the above agency from the following special revenue fund
or funds 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:

Court cost fund

No limit

Bond transcript review fee fund

No limit

Conversion of materials and equipment fund

No limit

Attorney general's antitrust special revenue fund

No limit

Private gifts fund

No limit

Attorney general's antitrust suspense fund

No limit

Attorney general's consumer protection clearing fund

No limit

Attorney general's committee on crime prevention fee fund

No limit

Provided, That expenditures may be made from the attorney general's committee on crime
prevention fee fund for operating expenditures directly or indirectly related to conducting
training seminars organized by the attorney general's committee on crime prevention, in-
cluding official hospitality: Provided further, That the attorney general is hereby authorized
to fix, charge and collect fees for conducting training seminars organized by the attorney
general's committee on crime prevention: And provided further, That such fees shall be
fixed in order to recover all or part of the direct and indirect operating expenses incurred
for conducting such seminars, including official hospitality: And provided further, That all
fees received for conducting such seminars shall be deposited in the state treasury and
credited to this fund.

Tort claims fund

No limit

Work-study reimbursement fund

No limit

Crime victims compensation fund

No limit

Provided, That expenditures from the crime victims compensation fund for state operations
shall not exceed $247,362: Provided further, That any expenditures for payment of com-
pensation to crime victims are authorized to be made from this fund regardless of when the
claim was awarded.

Child exchange and visitation fund

No limit

Federal preventive health and health services block grant fund

No limit

Provided, That all expenditures from the federal preventive health and health services block
grant fund shall be to provide services to rape victims and for rape prevention in accordance
with a contract that is hereby authorized to be entered into between the secretary of health
and environment and the attorney general which may require not more than one report
from the attorney general on such expenditures for the entire fiscal year 1999.

Crime victims assistance fund

No limit

Protection from abuse fund

No limit

Drug free schools and communities fund

No limit

Victims of crime act--federal fund

No limit

Victims of crime assistance act--federal fund

No limit

Family violence prevention and services fund--federal

No limit

Violence against women grant fund

No limit

Crime victims grants and gifts fund

No limit

Provided, That all private grants and gifts received by the crime victims compensation board
shall be deposited to the credit of the crime victims grants and gifts fund.

Attorney general's medicaid fraud control fund

No limit

Other federal grants and reimbursement fund

No limit

Debt collection administration cost recovery fund

No limit

Provided, That the attorney general shall deposit to the credit of the debt collection admin-
istration cost recovery fund all moneys remitted to the attorney general as administrative
costs under contracts entered into pursuant to K.S.A. 75-719 and amendments thereto:
Provided further, That the attorney general shall authorize the director of accounts and
reports to transfer $30,000 from this fund to the state general fund at such time as receipts
to this fund are sufficient to sustain expenditures for administering and monitoring such
contracts as well as to repay the state general fund for money advanced for such purpose:
And provided further, That, upon receipt of such authorization, the director of accounts
and reports shall transfer $30,000 from the debt collection administration cost recovery fund
to the state general fund.

Medicaid fraud reimbursement fund

No limit

Medicaid fraud prosecution revolving fund

No limit

Provided, That all moneys recovered by the medicaid fraud and abuse division of the attor-
ney general's office in the enforcement of state and federal law which are in excess of any
restitution for overcharges and interest, including all moneys recovered as recoupment of
expenses of investigation and prosecution, shall be deposited in the state treasury to the
credit of the medicaid fraud prosecution revolving fund: Provided further, That the attorney
general shall authorize the director of accounts and reports to transfer $29,082 from this
fund to the state general fund at such time as receipts to this fund are sufficient to meet
the federal matching requirement from nonfederal sources as well as to repay the state
general fund for money advanced for such purpose: And provided further, That, upon re-
ceipt of such authorization, the director of accounts and reports shall transfer $29,082 from
the medicaid fraud prosecution revolving fund to the state general fund: And provided
further, That the attorney general shall make a report during the 1999 regular session of
the legislature to the subcommittee of the house of representatives committee on appro-
priations and the subcommittee of the senate committee on ways and means that review
the above agency's budget on the amount of recouped money credited to the medicaid fraud
prosecution revolving fund and estimate of the money the agency has expended for medicaid
fraud control activities.

Interstate water litigation fund

No limit

(c) No moneys appropriated for the attorney general by this or other appropriation act
of the 1998 regular session of the legislature from the state general fund or any special
revenue fund for the fiscal year ending June 30, 1999, shall be expended for preparing or
publishing any book containing the opinions of the attorney general, or any summaries or
indexes of such opinions, or for preparing or publishing any other hardcopy printing, soft-
bound or hardbound, of such opinions, summaries or indexes.

Sec. 90.

SECRETARY OF STATE (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures

$1,501,360

Provided, That any unencumbered balance in the operating expenditures account in excess
of $100 as of June 30, 1998, and any unencumbered balance in the official hospitality account
in excess of $100 as of June 30, 1998, are hereby reappropriated to the operating expendi-
tures account for fiscal year 1999: Provided further, That expenditures from this account
for official hospitality shall not exceed $2,500.

(b) There is appropriated for the above agency from the following special revenue fund
or funds all moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:

Cemetery and funeral audit fee fund

No limit

Conversion of materials and equipment fund

No limit

Information and copy service fee fund

No limit

State register fee fund

No limit

Uniform commercial code fee fund

No limit

State flag and banner fund

No limit

Secretary of state fee refund fund

No limit

Electronic voting machine examination fund

No limit

Suspense fund

No limit

Prepaid services fund

No limit

Athlete agent registration fee fund

No limit

Franchise fee recovery fund

No limit

Sec. 91.

STATE TREASURER (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures

$1,743,432

Banking services

$330,000

Fiscal agency fund

No limit

Bond services fee fund

No limit

City bond finance fund

No limit

Taylor grazing fees--federal fund

No limit

Local ad valorem tax reduction fund

No limit

County and city revenue sharing fund

No limit

Suspense fund

No limit

County and city retailers' sales tax fund

No limit

County and city compensating use tax fund

No limit

Local alcoholic liquor fund

No limit

Local alcoholic liquor equalization fund

No limit

Unclaimed property claims fund

No limit

Unclaimed property expense fund

No limit

Unclaimed mineral proceeds trust fund

No limit

University of Kansas--student union annex--bond and interest sinkingfund

No limit

University of Kansas--satellite student union bond and interest sinkingfund

No limit

Road and schools--10 U.S.C. 2655 federal fund

No limit

Racing admissions tax fund

No limit

Rental motor vehicle excise tax fund

No limit

Services reimbursement fund

No limit

Municipal investment pool fund

No limit

Municipal investment pool reserve fund

No limit

Municipal investment pool fund fee fund

No limit

Pooled money investment portfolio fee fund

No limit

Provided, That on or before the fifth day of each month of the fiscal year ending June 30,
1999, the state treasurer shall certify to the pooled money investment board an accounting
of the banking fees incurred by the state treasurer during the second preceding month that
are attributable to the investment of the pooled money investment portfolio during such
month: Provided further, That prior to the 10th day of each month during the fiscal year
ending June 30, 1999, the pooled money investment board shall review the certification
from the state treasurer and shall make expenditures from the pooled money investment
portfolio fee fund to pay the amount of banking fees incurred by the state treasurer during
the second preceding month that are attributable to the investment of the pooled money
investment portfolio during the second preceding month, as determined by the pooled
money investment board: And provided further, That the aggregate of all expenditures for
banking fees from the pooled money investment portfolio fee fund during the fiscal year
ending June 30, 1999, shall not exceed the lesser of either (1) $100,000 or (2) the aggregate
amount of banking fees incurred by the state treasurer during the period from June 1, 1998,
through May 31, 1999, that are attributable to the investment of the pooled money invest-
ment portfolio during such period, as determined by the pooled money investment board.

Conversion of materials and equipment fund

No limit

Tax increment financing revenue replacement fund

No limit

(c) On July 1, 1998, the director of accounts and reports shall transfer $113,327 from
the state highway fund of the department of transportation to the services reimbursement
fund of the state treasurer for the purpose of financing a portion of the costs associated with
the investment of the bond proceeds of the comprehensive highway program and related
operations of the state treasurer.

Sec. 92.

INSURANCE DEPARTMENT (a) There is appropriated for the above agency from the following special revenue fund
or funds 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:

Insurance department service regulation fund

$6,504,003

Provided, That expenditures from the insurance department service regulation fund for
official hospitality shall not exceed $750: Provided further, That any transfers from this fund
to the insurance building principal and interest payment fund or the insurance department
rehabilitation and repair fund of the department of insurance shall be in addition to any
expenditure limitation imposed on this fund.

Insurance company examination fund

No limit

Insurance company annual statement examination fund

No limit

Insurance company examiner training fund

No limit

Conversion of materials and equipment fund

No limit

Commissioner's travel reimbursement fund

No limit

Provided, That expenditures may be made from the commissioner's travel reimbursement
fund only to reimburse the commissioner of insurance, or any designated employee, for
expenses incurred for in-state or out-of-state travel for official purposes, including travel to
meetings of public or private associations: Provided further, That all moneys received by
the commissioner of insurance for such travel from any non-state agency source shall be
deposited in the state treasury to the credit of this fund.

Workers compensation fund

No limit

Provided, That expenditures from the workers compensation fund for attorney fees and
other costs and benefit payments may be made regardless of when services were rendered
or when the initial award of benefits was made.

State firefighters relief fund

No limit

Suspense fund

No limit

Insurance company tax and fee refund fund

No limit

Group-funded workers' compensation pools fee fund

No limit

Municipal group-funded pools fee fund

No limit

Uninsurable health insurance plan fund

No limit

Senior health insurance counseling for Kansans fund

No limit

Provided, That expenditures from the senior health insurance counseling for Kansans fund
for official hospitality shall not exceed $750.

Insurance education and training fund

No limit

Provided, That expenditures may be made from the insurance education and training fund
for training programs and official hospitality: Provided further, That the insurance commis-
sioner is hereby authorized to fix, charge and collect fees for such training programs: And
provided further, That fees for such training programs shall be fixed in order to collect all
or part of the operating expenses incurred for such training programs, including official
hospitality: And provided further, That all fees received for such training programs shall be
deposited in the state treasury and credited to this fund.

Sec. 93.

HEALTH CARE STABILIZATION FUND BOARD OF GOVERNORS (a) There is appropriated for the above agency from the following special revenue fund
or funds 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:

Health care stabilization fund

No limit

(b) Expenditures from the health care stabilization fund other than refunds authorized
by law for the following specified purposes shall not exceed the limitations prescribed there-
for as follows:

Operating expenditures

$858,687

Provided, That expenditures from the operating expenditures account for official hospitality
shall not exceed $300.

Fees--legal and professional services

No limit

Provided, That expenditures from the fees--legal and professional services account for at-
torney fees and other professional service fees may be made regardless of when services
were rendered or when the judgment or settlement was made.

Claims and benefits

No limit

Provided, That expenditures from the claims and benefits account for claim and benefit
payments may be made regardless of when services were rendered or when the judgment
or settlement was made.

Sec. 94. Position limitations. The number of full-time and regular part-time positions
equated to full-time, excluding seasonal and temporary positions, paid from appropriations
for fiscal year 1999 made in this or other appropriation act of the 1998 regular session of
the legislature for the following agency or agencies shall not exceed the following, except
upon approval of the state finance council:

Attorney General

86.8

Secretary of State

55.0

State Treasurer

56.5

Insurance Department

161.5

Provided, That any attorney positions established in the insurance department for the pur-
pose of defense of the workers compensation fund shall be in addition to any limitation
imposed on the full-time and regular part-time equivalent number of positions, excluding
seasonal and temporary positions, paid from appropriations made for fiscal year 1999 for
the department of insurance.

Health Care Stabilization Fund Board of Governors

16.0

Sec. 95.

JUDICIAL COUNCIL (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures

$246,903

Provided, That any unencumbered balance in the operating expenditures account in excess
of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999: Provided, however,
That expenditures from such reappropriated balance shall not exceed $4,785 except upon
approval of the state finance council: Provided further, That no expenditures shall be made
from this account for any study requested by one or more members of the legislature unless
the study request was submitted in writing to the legislative coordinating council and the
study request was approved by the legislative coordinating council prior to the study request
being submitted to the judicial council: And provided further, That such limitation shall not
apply to any study requested by a standing committee of either house of the legislature or
any legislative committee established by statute.

(b) There is appropriated for the above agency from the following special revenue fund
or funds 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:

Grants and gifts fund

No limit

Provided, That all private grants and gifts and federal grants received by the judicial council,
other than moneys received as grants, gifts or donations for the preparation, publication or
distribution of legal publications, shall be deposited to the credit of the grants and gifts
fund.

Publications fee fund

No limit

Provided, That expenditures may be made from the publications fee fund for operating
expenditures related to preparation, publication and distribution of legal publications: Pro-
vided further, That the judicial council is hereby authorized to fix, charge and collect fees
for sale and distribution of legal publications in order to recover direct and indirect costs
incurred for preparation, publication and distribution of legal publications: And provided
further, That such fees may be fixed in order to recover all or part of such costs: And
provided further, That all moneys received from such fees shall be deposited in the state
treasury and credited to the publications fee fund: And provided further, That all moneys
received as gifts, grants or donations for the preparation, publication or distribution of legal
publications shall be deposited in the state treasury to the credit of the publications fee
fund.

Sec. 96.

STATE BOARD OF INDIGENTS' DEFENSE SERVICES (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures

$11,908,942

Provided, That any unencumbered balance in excess of $100 as of June 30, 1998, in the
operating expenditures account is hereby reappropriated to the operating expenditures ac-
count for fiscal year 1999: Provided further, That any expenditures for indigents' defense
services are authorized to be made from the operating expenditures account regardless of
when services were rendered: And provided further, That expenditures may be made from
the operating expenditures account for negotiated contracts for malpractice insurance for
public defenders and deputy or assistant public defenders: And provided further, That all
contracts for malpractice insurance for public defenders and deputy or assistant public
defenders shall be negotiated and purchased by the state board of indigents' defense serv-
ices, shall not be subject to approval or purchase by the committee on surety bonds and
insurance under K.S.A. 75-4114 and 75-6111 and amendments thereto and shall not be
subject to the provisions of K.S.A. 75-3739 and amendments thereto.

Capital defense operations

$1,273,319

Provided, That any unencumbered balance in excess of $100 as of June 30, 1998, in the
capital defense operations account is hereby reappropriated for fiscal year 1999.

Legal services for prisoners

$480,220

Any unencumbered balance in excess of $100 as of June 30, 1998, in each of the following
accounts is hereby reappropriated for fiscal year 1999: Regional defense delivery system
expansion operations; agency enhancements.

(b) There is appropriated for the above agency from the following special revenue fund
or funds 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:

Indigents' defense services fund

No limit

Provided, That expenditures may be made from the indigents' defense services fund for the
purpose of assigned counsel and other professional services related to contract cases.

Inservice education workshop fee fund

No limit

Provided, That expenditures may be made from the inservice education workshop fee fund
for operating expenditures, including official hospitality, incurred for inservice workshops
and conferences: Provided further, That the state board of indigents' defense services is
hereby authorized to fix, charge and collect fees for inservice workshops and conferences:
And provided further, That such fees shall be fixed in order to recover all or part of such
operating expenditures incurred for inservice workshops and conferences: And provided
further, That all fees received for inservice workshops and conferences shall be deposited
in the state treasury and credited to the inservice education workshop fee fund.

Sec. 97. Position limitations. The number of full-time and regular part-time positions
equated to full-time, excluding seasonal and temporary positions, paid from appropriations
for fiscal year 1999 made in this or other appropriation act of the 1998 regular session of
the legislature for the following agency or agencies shall not exceed the following, except
upon approval of the state finance council:

Judicial Council

4.0

Sec. 98.

JUDICIAL BRANCH (a) There is appropriated for the above agency from the state general fund the following:

Judiciary operations

$74,057,667

Provided, That any unencumbered balance in the judiciary operations account in excess of
$100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999: Provided, however,
That expenditures from such reappropriated balance shall not exceed $360,143 except upon
approval of the state finance council: Provided further, That contracts for computer input
of judicial opinions under this appropriation shall be executed in the name of the supreme
court by the chief justice and may be interrelated with contracts for the comprehensive
legislative information system: And provided further, That all such contracts for computer
input of judicial opinions and all purchases thereunder shall not be subject to the provisions
of K.S.A. 75-3739 and amendments thereto: And provided further, That expenditures may
be made from the judicial operations account for contingencies without limitation at the
discretion of the chief justice: And provided further, That expenditures from the judicial
operations account for such contingencies shall not exceed $25,000: And provided further,
That expenditures from the judicial operations account for official hospitality shall not ex-
ceed $4,000: And provided further, That expenditures shall be made from the judicial op-
erations account for the travel expenses of panels of the court of appeals for travel to cities
across the state to hear appealed cases: And provided further, That the Kansas citizens
justice initiative should incorporate a consideration of the recommendations of the perform-
ance audit report by the legislative division of post audit entitled ``Reviewing the Kansas
Court System's Allocation of Staff Resources to the District Courts'' in its final report.

(b) There is appropriated for the above agency from the following special revenue fund
or funds 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:

Library report fee fund

No limit

Judiciary technology fund

No limit

Provided, That no expenditures shall be made from the judiciary technology fund for a study
of automation needs in the district courts until the criminal justice coordinating council
receives and accepts a plan to define an integrated statewide criminal justice information
system.

Judicial branch gifts fund

No limit

Dispute resolution fund

No limit

Judicial branch education fund

No limit

Conversion of materials and equipment fund

No limit

Child welfare federal grant fund

No limit

Duplicate law book fund

No limit

Child support enforcement contractual agreement fund

No limit

Bar admission fee fund

No limit

Permanent families account--family and children investment fund

No limit

Provided, That expenditures may be made from the permanent families account of the family
and children investment fund for compensation, subsistence allowances, mileage and other
expenses for legislative members of the permanent families account advisory committee as
provided by K.S.A. 75-3223 and amendments thereto.

Court reporter fund

No limit

Access to justice fund

No limit

CSE contract agreement fund

No limit

Judicial technology and building and grounds fund

No limit

Provided, That all expenditures from the judicial technology and building and grounds fund
shall be for the purposes of capital equipment and other acquisitions for technology im-
provements for the judicial branch and capital improvements for the judicial center building
and ground: Provided further, That all moneys received from any nonstate source for any
of the purposes for which expenditures may be made from this fund, which moneys are
hereby authorized to be requested for, received and accepted by the chief justice, shall be
deposited in the state treasury to the credit of this fund.

(c) On June 30, 1999, the director of accounts and reports shall transfer any unencum-
bered balance in the judiciary operations account of the state general fund in an amount
not to exceed $100,000 from the judiciary operations account of the state general fund to
the judicial center technology and building and grounds fund.

Sec. 99.

KANSAS PUBLIC EMPLOYEES RETIREMENT SYSTEM (a) There is appropriated for the above agency from the following special revenue fund
or funds 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:

Kansas public employees retirement fund

No limit

Provided, That no expenditures may be made from the Kansas public employees retirement
fund other than for benefits, investments, refunds authorized by law, and other purposes
specifically authorized by this or other appropriation act.

(b) Expenditures may be made from the Kansas public employees retirement fund for
the following specified purposes: Provided, however, That expenditures from the Kansas
public employees retirement fund for the following specified purposes shall not exceed the
limitations prescribed therefor as follows:

Agency operations

$4,675,482

Provided, That expenditures from the agency operations account for official hospitality shall
not exceed $3,000: Provided further, That any expenditure from the agency operations
account of the Kansas public employees retirement fund to reimburse the audit services
fund of the division of legislative post audit for a financial-compliance audit in an amount
certified by the legislative post auditor shall be in addition to any expenditure limitation
imposed on the agency operations account of such fund for the fiscal year ending June 30,
1999.

Investment related expenses

$23,164,887

Provided, That the following subaccounts of the investment related expenses account shall
be maintained for purposes of accounting for expenditures from the investment related
expenses account: Direct placement management fees, real estate management fees, pub-
licly traded securities management fees, direct placement investment program, custodial
bank fees and expenses, investment consultant fees, and investment related litigation ex-
penses: Provided further, That all expenditures from the investment related expenses ac-
count or any other account of this fund for payments to direct placement investment man-
agers pursuant to indemnity provisions of indemnification agreements between the board
of trustees of the Kansas public employees retirement system and direct placement invest-
ment managers shall be in addition to any expenditure limitation imposed on this fund or
any account thereof, except that no such indemnity provision shall provide indemnification
in an amount greater than 20% of the total value of the assets being managed by a direct
placement investment manager.

(c) There is appropriated for the above agency from the state general fund the following:

Actuarial funding--3% postretirement benefit increase

$28,342,761

Provided, That all expenditures from the actuarial funding--3% postretirement benefit in-
crease account shall be to finance the amount required to fund the actuarial liability of the
state obligation for the one-time postretirement benefit increase for persons who retired
prior to July 1, 1993, and for whom the state paid employer contributions (1) under the
Kansas public employees retirement system for those persons who were eligible for assis-
tance from the state board of regents in the purchase of annuities as provided in K.S.A. 74-
4925, and amendments thereto, (2) under the Kansas public employees retirement system
for those persons who were employed by eligible employers described by K.S.A. 74-4931,
and amendments thereto, and for whom employer contributions were paid as provided by
K.S.A. 74-4939, and amendments thereto, (3) under the Kansas police and firemen's re-
tirement system as provided by K.S.A. 74-4951 et seq., and amendments thereto, or (4)
under the retirement system for judges as provided by K.S.A. 20-2601 et seq., and amend-
ments thereto.

Sec. 100.

KANSAS COMMISSION ON GOVERNMENTAL STANDARDS AND CONDUCT (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures

$351,781

Provided, That any unencumbered balance in the operating expenditures account in excess
of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999.

(b) There is appropriated for the above agency from the following special revenue fund
or funds 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:

Kansas commission on governmental standards and conduct fee fund

$147,653

Sec. 101.

KANSAS HUMAN RIGHTS COMMISSION (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures

$1,439,671

Provided, That any unencumbered balance in the operating expenditures account and in
the contract investigative services account in excess of $100 as of June 30, 1998, is hereby
reappropriated to the operating expenditures account for fiscal year 1999: Provided, how-
ever, That expenditures from this account for official hospitality shall not exceed $150:
Provided further, That expenditures for mediation services contracted with Kansas legal
services shall be made only upon certification by the executive director of the human rights
commission to the director of accounts and reports that private moneys are available to
match the expenditure of state moneys on a $1 of private moneys to $3 of state moneys
basis.

(b) There is appropriated for the above agency from the following special revenue fund
or funds 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:

Federal fund

No limit

Conversion of materials and equipment fund

No limit

Annual banquet fund

No limit

Provided, That expenditures may be made from the annual banquet fund for operating
expenditures for the commission's annual banquet, including official hospitality: Provided
further, That the executive director is hereby authorized to fix, charge and collect fees for
such banquet: And provided further, That such fees shall be fixed in order to recover all or
part of the operating expenses incurred for such banquet, including official hospitality: And
provided further, That all fees received for such banquet shall be credited to this fund.

Education and training fund

No limit

Provided, That expenditures may be made from the education and training fund for oper-
ating expenditures for the commission's education and training programs for the general
public: Provided further, That the executive director is hereby authorized to fix, charge and
collect fees for such programs: And provided further, That such fees shall be fixed in order
to recover all or part of the operating expenses incurred for such training programs, including
official hospitality: And provided further, That all fees received for such programs shall be
credited to this fund.

Sec. 102.

STATE CORPORATION COMMISSION (a) There is appropriated for the above agency from the following special revenue fund
or funds 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:

Public service regulation fund

No limit

Provided, That all transfers of money from the public service regulation fund to the utility
regulatory fee fund of the citizens' utility ratepayer board shall be in addition to any limi-
tation imposed on this fund.

Motor carrier license fees fund

No limit

Conservation fee fund

No limit

Provided, That any expenditure made from the conservation fee fund for plugging aban-
doned wells, cleanup of pollution from oil and gas activities and testing of wells shall be in
addition to any expenditure limitation imposed on this fund: Provided further, That ex-
penditures may be made from this fund for debt collection and set-off administration: And
provided further, That a percentage of the fees collected, not to exceed 27%, shall be
transferred to the department of administration accounting services recovery fund for serv-
ices rendered in collection efforts: And provided further, That all expenditures made from
the conservation fee fund for debt collection and set-off administration shall be in addition
to any expenditure limitation imposed on this fund: And provided further, That the state
corporation commission shall include as part of the fiscal year 2000 budget estimates for
the state corporation commission submitted pursuant to K.S.A. 75-3717, and amendments
thereto, a three-year projection of receipts to and expenditures from the conservation fee
fund for fiscal years 2000, 2001 and 2002.

Gas pipeline inspection fee fund

No limit

Abandoned oil and gas well fund

No limit

Gas pipeline safety program--federal fund

No limit

Energy grants management fund

No limit

Alternative fuels and transportation initiatives grant--federal fund

No limit

Energy conservation plan--federal fund

No limit

Underground injection control class II--federal fund

No limit

Inservice education workshop fee fund

No limit

Provided, That expenditures may be made from the inservice education workshop fee fund
for operating expenditures, including official hospitality, incurred for inservice workshops
and conferences conducted by the state corporation commission for staff and members of
the state corporation commission: Provided further, That the state corporation commission
is hereby authorized to fix, charge and collect fees for such inservice workshops and con-
ferences: And provided further, That such fees shall be fixed in order to recover all or part
of the operating expenditures incurred for conducting such inservice workshops and con-
ferences: And provided further, That all moneys received for such fees shall be deposited
in the state treasury and credited to this fund.

Base state registration clearing fund

No limit

Suspense fund

No limit

Data management system fund

No limit

(b) Expenditures for the fiscal year ending June 30, 1999, by the state corporation
commission from the public service regulation fund, the motor carrier license fees fund and
the conservation fee fund shall not exceed, in the aggregate, $12,745,569: Provided, That,
within such limitation on the aggregate of expenditures, expenditures made for fiscal year
1999 from the public service regulation fund, the motor carrier license fees fund and the
conservation fee fund for official hospitality shall not exceed, in the aggregate, $600.

Sec. 103.

CITIZENS' UTILITY RATEPAYER BOARD (a) There is appropriated for the above agency from the following special revenue fund
or funds 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:

Utility regulatory fee fund

$439,190

Provided, That expenditures may be made by the citizens' utility ratepayer board from the
utility regulatory fee fund pursuant to contracts for professional services, which are hereby
authorized to be entered into by the board: Provided further, That such professional services
shall include but are not limited to the services of engineers, accountants, attorneys and
economists, to assist in carrying out the duties of the board, which assistance may include
preparation and presentation of expert testimony, when the expenses of such professional
services are required to be assessed under K.S.A. 66-1502 and amendments thereto against
the public utilities involved: And provided further, That such contracts shall be negotiated
by a negotiating committee composed of the following persons: The consumer counsel of
the citizens' utility ratepayer board or the consumer counsel's designee, the director of the
budget or that director's designee, the director of accounts and reports or that director's
designee, and the chairperson of the citizens' utility ratepayer board or the chairperson's
designee: And provided further, That the consumer counsel of the citizens' utility ratepayer
board or the consumer counsel's designee shall convene the negotiating committee for each
such contract and the negotiating committee shall consider all proposals by persons applying
to perform such contract and shall award the contract: And provided further, That such
contracts shall not be subject to the provisions of K.S.A. 75-3739 and amendments thereto
or to the provisions of the acts contained in article 58 of chapter 75 of the Kansas Statutes
Annotated.

Gifts and donations fund

No limit

Provided, That all moneys received by the citizens' utility ratepayer board for gifts and
donations shall be deposited in the state treasury to the credit of the gifts and donations
fund.

(b) On July 1, 1998, October 1, 1998, January 1, 1999, and April 1, 1999, or as soon
after each such date as moneys are available, and upon receipt of certification by the state
corporation commission of the amount to be transferred, the director of accounts and reports
shall transfer from the public service regulation fund of the state corporation commission
to the utility regulatory fee fund of the citizens' utility ratepayer board all moneys assessed
by the state corporation commission for the citizens' utility ratepayer board under K.S.A.
66-1502 or 66-1503 and amendments thereto and deposited in the state treasury to the
credit of the public service regulation fund.

Sec. 104.

DEPARTMENT OF ADMINISTRATION (a) There is appropriated for the above agency from the state general fund the following:

General administration

$1,179,118

Provided, That any unencumbered balance in the general administration account in excess
of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999: Provided, however,
That expenditures for such reappropriated balance shall not exceed $11,559 except upon
approval of the state finance council: Provided, further, That in addition to other positions
within the department of administration in the unclassified service as prescribed by law,
expenditures may be made from this account for two employees in the unclassified service
under the Kansas civil service act: And provided further, That expenditures from this ac-
count for official hospitality shall not exceed $1,000.

Accounting and reporting services

$2,671,278

Provided, That any unencumbered balance in the accounting and reporting services account
in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999: Provided,
however, That expenditures from such reappropriated balance shall not exceed $13,886
except upon approval of the state finance council.

Budget analysis

$1,305,161

Provided, That any unencumbered balance in the budget analysis account in excess of $100
as of June 30, 1998, is hereby reappropriated for fiscal year 1999: Provided, however, That
expenditures from such reappropriated balance shall not exceed $34,739 except upon ap-
proval of the state finance council: Provided further, That expenditures from this account
for official hospitality shall not exceed $750.

Personnel services

$3,089,554

Provided, That any unencumbered balance in the personnel services account in excess of
$100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999: Provided, however,
That expenditures from such reappropriated balance shall not exceed $27,907 except upon
approval of the state finance council: Provided further, That expenditures may be made
from the above account for a study of the implications of those sections of 1997 House Bill
No. 2064 which restrict unclassified personnel who has participated in making contracts on
behalf of the state from accepting a position with the contracting business as an employee,
contractor or subcontractor until two years after that entity's contract with the state is
completed or until two years after that individual ends state service, whichever is sooner:
And provided further, That the director of personnel services shall present the results of
the study, including characteristics of the employees effected and any recommendations for
statutory changes, to the 1999 legislature.

Purchasing

$1,240,253

Provided, That any unencumbered balance in the purchasing account in excess of $100 as
of June 30, 1998, is hereby reappropriated for fiscal year 1999: Provided, however, That
expenditures from such reappropriated balance shall not exceed $7,273 except upon ap-
proval of the state finance council.

Architectural services and planning

$1,269,759

Provided, That any unencumbered balance in the architectural services and planning ac-
count in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999:
Provided, however, That expenditures from such reappropriated balance shall not exceed
$35,557 except upon approval of the state finance council.

Facilities management

$2,366,051

Provided, That any unencumbered balance in the facilities management account in excess
of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999: Provided, however,
That expenditures from such reappropriated balance shall not exceed $8,287 except upon
approval of the state finance council: Provided further, That in addition to other positions
within the department of administration in the unclassified service as prescribed by law,
expenditures may be made from this account for one employee in the unclassified service
under the Kansas civil service act.

Insurance for state buildings

$336,510

Provided, That any unencumbered balance in the insurance for state buildings account in
excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999: Provided,
however, That expenditures from such reappropriated balance shall not exceed $2,490 ex-
cept upon approval of the state finance council.

Department of administration systems

$5,540,534

Provided, That any unencumbered balance in the department of administration systems
account in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999:
Provided, however, That expenditures from such reappropriated balance shall not exceed
$14,347 except upon approval of the state finance council.

Public broadcasting council operating grants

$1,695,977

Provided, That any unencumbered balance in the public broadcasting council operating
grants account in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal year
1999.

Public broadcasting capital equipment grants

$250,000

Provided, That all expenditures from the public broadcasting capital equipment grants ac-
count shall be made to provide matching funds for federal capital equipment grants awarded
to eligible public broadcasting stations: Provided further, That expenditures from this ac-
count may be made to provide matching funds for capital equipment projects funded from
any non-state source in the event federal capital equipment grants are not awarded: And
provided further, That in the event the federal facility programs cease to exist or fail to
conduct grant solicitations, expenditures may be made from this account to provide match-
ing funds for capital equipment projects funded from any non-state source without first
applying for federal capital equipment grants: And provided further, That any unencum-
bered balance in the public broadcasting capital equipment grants account in excess of $100
as of June 30, 1998, is hereby reappropriated for fiscal year 1999.

Gubernatorial transition

$100,000

Policy analysis initiatives

$132,054

Provided, That any unencumbered balance in the policy analysis initiatives account in excess
of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999.

Performance review board

$260,237

Provided, That any unencumbered balance in the performance review board account in
excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999: Provided,
however, That expenditures for such reappropriated balance shall not exceed $37,161 except
upon approval of the state finance council.

Actuarial study

$40,000

Any unencumbered balance in excess of $100 as of June 30, 1998, in each of the following
accounts is hereby reappropriated for fiscal year 1999: Year 2000 computer repair for state
agencies.

(b) There is appropriated for the above agency from the following special revenue fund
or funds all moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures other than refunds or indirect cost recoveries authorized by
law shall not exceed the following:

Federal cash management fund

No limit

Kansas performance review board fund

No limit

Closure health insurance fund

No limit

Closure term life insurance fund

No limit

Retirement salary recapture fund

No limit

Provided, That pursuant to policies and procedures prescribed by the secretary of admin-
istration, the director of accounts and reports shall transfer an amount equal to the amount
of reductions from state general fund accounts pursuant to subsection (d)(1) of K.S.A. 75-
6801 and amendments thereto to the retirement salary recapture fund: Provided further,
That if expenditure authority in any state general fund account or accounts is restored
pursuant to subsection (c)(1) of K.S.A. 75-6801 and amendments thereto and such amount
has been transferred to this fund, the director of accounts and reports, pursuant to policies
and procedures prescribed by the secretary of administration, shall transfer the amount of
the increase in such expenditure authority from the retirement salary recapture fund to the
appropriate accounts of the state general fund.

State leave payment reserve fund

No limit

State budget stabilization fund

Building and ground fund

No limit

General fees fund

No limit

Provided, That expenditures may be made from the general fees fund for operating ex-
penditures for the division of personnel services, including training programs and official
hospitality: Provided further, That the director of personnel services is hereby authorized
to fix, charge and collect fees for such training programs: And provided further, That fees
for such training programs shall be fixed in order to recover all or part of the operating
expenses incurred for such training programs, including official hospitality: And provided
further, That all fees received for such training programs and all fees received under the
open records act for providing access to or furnishing copies of public records shall be
credited to this fund.

Budget fees fund

No limit

Provided, That expenditures may be made from the budget fees fund for operating expend-
itures for the division of the budget, including training programs and official hospitality:
Provided further, That the director of the budget is hereby authorized to fix, charge and
collect fees for such training programs: And provided further, That fees for such training
programs shall be fixed in order to recover all or part of the operating expenses incurred
for such training programs, including official hospitality: And provided further, That all fees
received for such training programs and all fees received by the division of the budget under
the open records act for providing access to or furnishing copies of public records shall be
credited to this fund.

Purchasing fees fund

No limit

Provided, That expenditures may be made from the purchasing fees fund for operating
expenditures of the division of purchases: Provided further, That the director of purchases
is hereby authorized to fix, charge and collect fees for operating expenditures incurred to
reproduce and disseminate purchasing information and for vendor applications and to ad-
minister state contracts: And provided further, That such fees shall be fixed in order to
recover all or part of such operating expenses: And provided further, That all moneys re-
ceived for such fees and all moneys received pursuant to the state travel services contract
shall be deposited in the state treasury to the credit of this fund.

Architectural services fee fund

No limit

Provided, That expenditures may be made from the architectural services fee fund for
operating expenditures for distribution of architectural information: Provided further, That
the director of architectural services is hereby authorized to fix, charge and collect fees for
reproduction and distribution of architectural information: And provided further, That such
fees shall be fixed in order to recover all or part of the operating expenses incurred for
reproducing and distributing architectural information: And provided further, That all fees
received for such reproduction and distribution of architectural information shall be credited
to this fund.

Municipal accounting and training services recovery fund

No limit

Provided, That expenditures may be made from the municipal accounting and training
services recovery fund to provide general ledger, payroll reporting, utilities billing, data
processing, and accounting services to municipalities and to provide training programs con-
ducted for municipal government personnel, including official hospitality: Provided further,
That the director of accounts and reports is hereby authorized to fix, charge and collect fees
for such services and programs: And provided further, That such fees shall be fixed in order
to recover all or part of the operating expenses incurred in providing such services and
programs, including official hospitality: And provided further, That all fees received for such
services and programs, including official hospitality, shall be credited to this fund.

Budget equipment conversion fund

No limit

Conversion of materials and equipment fund

No limit

Architectural services equipment conversion fund

No limit

Property contingency fund

No limit

Flood control emergency--federal fund

No limit

Information technology fund

No limit

Information technology reserve fund

No limit

Computer services recovery fund

No limit

Provided, That expenditures may be made from the computer services recovery fund to
provide central computer system development services, which shall be in addition to data
processing services provided under K.S.A. 75-4704 and amendments thereto to other state
agencies: Provided further, That the secretary of administration is hereby authorized, in
accordance with the procedures and guidelines prescribed by K.S.A. 75-4703 and amend-
ments thereto, to fix, charge and collect fees for such central computer system development
services to other state agencies: And provided further, That such fees shall be fixed in order
to recover all or part of the operating expenses incurred in providing such services: And
provided further, That all fees received for such services shall be credited to this fund: And
provided further, That all expenditures for the personnel/payroll project shall be made from
the personnel/payroll project program account of this fund: And provided further, That
amounts may be transferred into this account from any state general fund account or any
special revenue fund of the department of administration or any other state agency.

State buildings operating fund

No limit

Accounting services recovery fund

No limit

Provided, That expenditures may be made from the accounting services recovery fund for
the operating expenditures of the department of administration: Provided further, That the
secretary of administration is hereby authorized to fix, charge and collect fees for services
or sales provided by the department of administration which are not specifically authorized
by any other statute: And provided further, That all fees received for such services or sales
shall be credited to this fund.

Architectural services recovery fund

$1,226,734

Provided, That expenditures may be made from the architectural services recovery fund for
operating expenditures for the division of architectural services: Provided further, That not-
withstanding the provisions of subsection (b) of K.S.A. 75-4403 and amendments thereto,
the director of architectural services may exchange an employee with the attorney general's
office to assist in the enforcement of K.S.A. 58-1301 et seq.: And provided further, That the
director of architectural services is hereby authorized to charge and collect fees for services
provided to other state agencies not directly related to the construction of a capital improve-
ment project: And provided further, That the director of architectural services is hereby
authorized to charge and collect (1) a fee equal to 1% of the estimated cost of each capital
improvement project for a state agency which is not financed, in whole or in part, by gifts,
bequests, or donations made by one or more private individuals or other private entities and
for which the division provides architectural, engineering or management services or, in the
case of any capital improvement project for a state agency which is partially financed by
gifts, bequests or donations made by one or more private individuals or other private entities,
a fee equal to 1% of the proportional amount of the estimated cost of such capital improve-
ment project which is not financed by gifts, bequests or donations made by one or more
private individuals or other private entities and for which the division provides architectural,
engineering or management services, and (2) an additional fee equal to 6% of the construc-
tion cost of each capital improvement project for which the division provides in-house
architectural and engineering design services: And provided further, That such services shall
be subject to the limitations of K.S.A. 75-1253 and amendments thereto: And provided
further, That all fees received for such services shall be credited to this fund.

Motor pool service fund

$2,693,843

Provided, That expenditures from the motor pool service fund for motor vehicle registrations
shall be in addition to any expenditure limitation imposed on this fund.

Motor pool service depreciation reserve fund

No limit

Kansas public employees retirement clearing fund

No limit

Intragovernmental printing service fund

No limit

Intragovernmental printing service depreciation reserve fund

No limit

Central aircraft fund

No limit

Provided, That expenditures may be made from the central aircraft fund to provide central
aircraft services to other state agencies and to purchase liability and property damage in-
surance for state aircraft: Provided further, That the secretary of administration is hereby
authorized to fix, charge and collect fees for central aircraft services to other state agencies:
And provided further, That such fees shall be fixed in order to recover all or part of the
operating expenses incurred in providing such services: And provided further, That all fees
received for such services shall be credited to this fund.

Canceled warrants payment fund

No limit

Executive mansion gifts fund

No limit

Veterans memorial fund

No limit

State emergency fund

No limit

Bid and contract deposit fund

No limit

State workers compensation self-insurance fund

No limit

Provided, That expenditures shall be made from the state workers compensation self-insur-
ance fund for a contract with the secretary of human resources to implement and administer
the state workplace health and safety program for state employees in accordance with K.S.A.
44-575 and amendments thereto, which contract is hereby authorized and directed to be
entered into between the secretary of administration and the secretary of human resources:
Provided further, That, pursuant to policies and procedures prescribed by the secretary of
administration, the director of accounts and reports shall transfer an amount certified pur-
suant to such contract by the secretary of administration from the state workers compen-
sation self-insurance fund of the department of administration to the state workplace health
and safety program fund of the department of human resources.

Health and hospitalization insurance clearing fund

No limit

Provided, That no expenditures may be made from the health and hospitalization insurance
clearing fund for entering into any state employee health or hospitalization insurance con-
tract which provides for reimbursement, payment for or coverage of abortions or abor-
tion-related services, except that any such insurance contract may provide for reimburse-
ment, payment for or coverage of abortions or abortion-related services where the life of
the mother would be endangered if the fetus were carried to term, or to avert a serious risk
of substantial and irreversible impairment of a major bodily function, or where the preg-
nancy is the result of an act of rape or incest, or where medical complications have arisen
from an abortion.

Federal withholding tax clearing fund

No limit

State gaming revenues fund

No limit

Health insurance premium reserve fund

No limit

Purchasing seminars clearing fund

No limit

Provided, That expenditures may be made from the purchasing seminars clearing fund for
operating expenditures for training seminars conducted for government personnel, including
official hospitality: Provided further, That the director of purchasing is hereby authorized
to fix, charge and collect fees for such seminars: And provided further, That such fees shall
be fixed in order to recover all or part of the operating expenses incurred for such training
seminars, including official hospitality: And provided further, That all fees received for such
seminars shall be credited to this fund.

Excise tax refund clearing fund

No limit

State withholding tax clearing fund

No limit

Unemployment compensation tax clearing fund

No limit

Construction defects recovery fund

No limit

Preventive health care program fund

No limit

Cafeteria benefits fund

No limit

Provided, That expenditures from the cafeteria benefits fund for salaries and wages and
other operating expenditures shall not exceed $956,633.

Dependent care assistance program fund

No limit

Conversion of materials and equipment--recycling program fund

No limit

Employees faithful performance bond clearing fund

No limit

Deferred compensation clearing fund

No limit

Equipment lease purchase program administration clearing fund

No limit

Suspense fund

No limit

Series E savings bonds clearing fund

No limit

Optional life insurance clearing fund

No limit

Employee organization dues clearing fund

No limit

United Way contributions clearing fund

No limit

Setoff clearing fund

No limit

Parking fees clearing fund

No limit

Electronic funds transfer suspense fund

No limit

State employee contribution clearing fund for OASDHI

No limit

Intergovernmental cooperation agreement for development of statewidecost allocation plan clearing fund

No limit

Medicare fund clearing account

No limit

State leave payment reserve fund

No limit

Ad Astra sculpture fund

No limit

State capitol dome sculpture fund

No limit

Provided, That, notwithstanding the provisions of K.S.A. 75-2249 and amendments thereto,
all expenditures from the state capitol dome sculpture fund shall be made in accordance
with appropriations acts upon warrants of the director of accounts and reports issued pur-
suant to vouchers approved by the secretary of administration, or the secretary's designee:
Provided further, That all moneys received by the department of administration in the form
of grants, gifts, contributions or bequests made for the purpose of financing the cost of
acquiring and placing atop the capitol the work of sculpture selected pursuant to statute
shall be deposited in the state treasury and credited to this fund and all such grants, gifts,
contributions or bequests are hereby authorized to be received by the department of ad-
ministration.

Topeka state hospital transition fund

No limit

Administrative hearings office fund

No limit

Public broadcasting equipment grants EDIF fund

$200,000

Provided, That all expenditures from the public broadcasting equipment grants EDIF fund
shall be made to provide matching funds for federal capital equipment grants awarded to
eligible public broadcasting stations: Provided further, That expenditures from this fund
may be made to provide matching funds for capital equipment projects funded from any
nonstate source in the event federal capital equipment grants are not awarded: And provided
further, That in the event the federal facility programs cease to exist or fail to conduct grant
solicitations, expenditures may be made from this fund to provide matching funds for capital
equipment projects funded from any nonstate source without first applying for federal cap-
ital equipment grants.

(c) On July 1, 1998, the director of architectural services shall certify to the director of
accounts and reports a listing of all identified capital improvement projects funded for fiscal
year 1999 which are subject to a fee payable to the director of architectural services for
crediting to the architectural services recovery fund, the accounts and funds in which moneys
are appropriated for fiscal year 1999 for such projects and the amount of all such fees payable
from such accounts and funds for fiscal year 1999 for such projects. Upon receipt of such
certification, the director of accounts and reports shall transfer from the appropriation ac-
counts for such projects to the architectural services recovery fund the amounts so certified.
For other capital improvement projects subject to such fees, the fees shall be paid on or
before the date the director of architectural services approves the plans for the project, as
a transaction between state agencies in accordance with subsection (b) of K.S.A. 75-5516
and amendments thereto.

(d) On July 1, 1998, the director of accounts and reports shall transfer $210,000 from
the state highway fund to the state general fund for the purpose of reimbursing the state
general fund for the cost of providing purchasing services to the department of transpor-
tation.

(e) During the fiscal year ending June 30, 1999, the secretary of administration is au-
thorized to approve refinancing of equipment being financed by state agencies through the
department's equipment financing program. Such project is approved for the purposes of
subsection (b) of K.S.A. 74-8905 and amendments thereto.

(f) On July 1, 1998, or as soon thereafter as moneys are available, the director of ac-
counts and reports shall transfer energy conservation savings of $157,825 from the state
buildings operating fund to the state general fund.

(g) (1) In addition to the other purposes for which expenditures may be made by the
above agency from the closure term life insurance fund for the fiscal year ending June 30,
1999, as authorized by this or other appropriation act of the 1998 regular session of the
legislature, expenditures may be made by the above agency from closure term life insurance
fund for fiscal year 1999 for the following, which the secretary of administration is hereby
authorized to provide from the closure term life insurance fund:

(A) The death benefits authorized by K.S.A. 75-4373 and amendments thereto on a self-
insured basis, for which the net amount of the death benefit shall be equal to 150% of the
annual rate of compensation of the covered state officer or employee, as of the date the
covered state officer or employee is laid off in accordance with K.S.A. 75-4373 and amend-
ments thereto; and

(B) the costs of self-administering such death benefits or of contracting with a third
party for administration of such death benefits.

(2) During the fiscal year ending June 30, 1999, upon request of the secretary of ad-
ministration, the director of accounts and reports shall make periodic transfers of moneys
during fiscal year 1999 in amounts specified by the secretary of administration from the
state hospital closure account of the state general fund of the department of social and
rehabilitation services to the closure term life insurance fund of the department of admin-
istration.

(3) During the fiscal year ending June 30, 1999, upon certification by the secretary of
administration to the director of accounts and reports that the unencumbered balance in
the closure term life insurance fund is insufficient to pay an amount for which the closure
term life insurance fund is liable and that there are insufficient moneys in the state hospital
closure account of the state general fund of the department of social and rehabilitation
services to transfer pursuant to paragraph (2) of this subsection (h), the director of accounts
and reports shall transfer an amount equal to the insufficiency from the state general fund
to the closure term life insurance fund.

(h) During the fiscal year ending June 30, 1999, the director of the office of adminis-
trative hearings of the department of administration shall prepare and submit to the sec-
retary of social and rehabilitation services a billing invoice each month in the amount equal
to 1/12 of $783,185, for administrative hearing services performed by the department of
administration for the department of social and rehabilitation services: Provided, That the
amount to be billed may be adjusted as provided in writing by mutual agreement between
the secretary of social and rehabilitation services and the secretary of administration: Pro-
vided further, That the amount specified in the monthly invoice shall be paid from the
appropriate fund or funds of the department of social and rehabilitation services into the
administrative hearings office fund of the department of administration.

(i) On July 15, 1998, or as soon thereafter as moneys are available, the director of
accounts and reports shall transfer $200,000 from the Kansas economic development en-
dowment account of the state economic development initiatives fund of the department of
commerce and housing to the public broadcasting equipment grants EDIF fund of the
department of administration.

(j) In addition to the purposes for which expenditures may be made by the above agency
for the fiscal year ending June 30, 1999, from any account or accounts of the state general
fund or any special revenue fund or funds or account or accounts thereof appropriated by
this or any other act of the 1998 legislature for the above agency for the fiscal year ending
June 30, 1999, expenditures shall be made for an actuarial study to ascertain the fiscal impact
and associated effects of requiring participation in the state health care benefits program
by all unified school districts: Provided, That any expenditures for such actuarial study from
any special revenue fund or funds or account or accounts thereof shall be in addition to any
expenditure limitation imposed on any special revenue fund or funds or account or accounts
thereof.

Sec. 105 Position limitations. The number of full-time and regular part-time positions
equated to full-time, excluding seasonal and temporary positions, paid from appropriations
for the fiscal year ending June 30, 1999, made in this or other appropriation act of the 1998
regular session of the legislature for the following agency or agencies shall not exceed the
following, except upon approval of the state finance council:

Kansas Public Employees Retirement System

76.0

Kansas Commission on Governmental Standards and Conduct

9.0

Kansas Human Rights Commission

37.0

State Corporation Commission

212.0

Citizens' Utility Ratepayer Board

3.0

Department of Administration

855.9

Sec. 106.

STATE BOARD OF TAX APPEALS (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures

$1,632,665

Duplicating fees fund

No limit

Sec. 107.

DEPARTMENT OF REVENUE (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures

$28,215,419

Sand royalty fund

No limit

Division of vehicles operating fund

$30,374,330

Provided, That all receipts collected under authority of K.S.A. 74-2012 and amendments
thereto shall be credited to the division of vehicles operating fund: Provided further, That
expenditures from this fund for salaries and wages shall not exceed $16,914,375: And pro-
vided further, That any expenditure from the division of vehicles operating fund of the
department of revenue to reimburse the audit services fund of the division of post audit for
a financial-compliance audit in an amount certified by the legislative post auditor shall be
in addition to any expenditure limitation imposed on the division of vehicles operating fund
for the fiscal year ending June 30, 1999: And provided further, That expenditures shall be
made from this fund for the fiscal year ending June 30, 1999, for reprinting the driver's
license handbook in both Spanish and English.

Vehicle dealers and manufacturers fee fund

No limit

Kansas qualified agricultural ethyl alcohol producer incentive fund

No limit

Local report fee fund

No limit

Military retirees income tax refund fund

No limit

Conversion of materials and equipment fund

No limit

Forfeited property fee fund

No limit

Setoff services revenue fund

No limit

Publications fee fund

No limit

State bingo regulation fund

$361,530

Child support enforcement contractual agreement fund

No limit

County treasurers' vehicle licensing fee fund

No limit

Reappraisal reimbursement fund

No limit

Provided, That all moneys received for the costs incurred for conducting appraisals for any
county shall be deposited in the state treasury and credited to the reappraisal reimbursement
fund: Provided further, That expenditures may be made from this fund for the purpose of
conducting appraisals pursuant to orders of the board of tax appeals under K.S.A. 79-1479
and amendments thereto.

Special training fund

No limit

Provided, That expenditures may be made from the special training fund for operating
expenditures, including official hospitality, incurred for conferences, training seminars,
workshops and examinations: Provided further, That the secretary of revenue is hereby
authorized to fix, charge and collect fees for conferences, training seminars, workshops and
examinations sponsored or cosponsored by the department of revenue: And provided fur-
ther, That such fees shall be fixed in order to recover all or part of the operating expenditures
incurred for such conferences, training seminars, workshops and examinations or for qual-
ifying applicants for such conferences, training seminars, workshops and examinations: And
provided further, That all fees received for conferences, training seminars, workshops and
examinations shall be deposited in the state treasury and credited to the special training
fund.

Recovery fund for enforcement actions and attorney fees

No limit

Federal commercial motor vehicle safety fund

No limit

Central stores fund

No limit

Provided, That expenditures may be made from the central stores fund to operate and
maintain a central stores activity to sell supplies to other state agencies: Provided further,
That all moneys received for such supplies shall be deposited in the state treasury and
credited to this fund.

Microfilming fund

No limit

Provided, That expenditures may be made from the microfilming fund to operate and main-
tain a microfilming activity to sell microfilming services to other state agencies: Provided
further, That all moneys received for such services shall be deposited in the state treasury
and credited to this fund.

Miscellaneous trust bonds fund

No limit

Liquor excise tax guarantee bond fund

No limit

Non-resident contractors cash bond fund

No limit

Bond guaranty fund

No limit

Interstate motor fuel user cash bond fund

No limit

Motor fuel distributor cash bond fund

No limit

County and city bingo tax fund

No limit

Special county mineral production tax fund

No limit

County drug tax fund

No limit

Escheat proceeds suspense fund

No limit

Privilege tax refund fund

No limit

Suspense fund

No limit

Cigarette tax refund fund

No limit

Motor-vehicle fuel tax refund fund

No limit

Cereal malt beverage tax refund fund

No limit

Income tax refund fund

No limit

Sales tax refund fund

No limit

Compensating tax refund fund

No limit

Alcoholic liquor tax refund fund

No limit

Cigarette/tobacco products regulation fund

No limit

Motor carrier tax refund fund

No limit

Car company tax fund

No limit

Protested motor carrier taxes fund

No limit

Tobacco products refund fund

No limit

Transient guest tax refund fund established by K.S.A. 12-1694a

No limit

Interstate motor fuel taxes clearing fund

No limit

Bingo refund fund

No limit

Transient guest tax refund fund established by K.S.A. 12-16,100

No limit

Inheritance tax abatement refund fund

No limit

Interstate motor fuel taxes refund fund

No limit

Interfund clearing fund

No limit

Local alcoholic liquor clearing fund

No limit

International registration plan distribution clearing fund

No limit

Rental motor vehicle excise tax refund fund

No limit

International fuel tax agreement clearing fund

No limit

Mineral production tax refund fund

No limit

Special fuels tax refund fund

No limit

LP-gas motor fuels refund fund

No limit

Local alcoholic liquor refund fund

No limit

Sales tax clearing fund

No limit

Rental motor vehicle excise tax clearing fund

No limit

VIPS/CAMA technology hardware fund

No limit

County and city retailers sales tax clearing fund--county and city salestax

No limit

City and county compensating use tax clearing fund

No limit

County and city transient guest tax clearing fund

No limit

Automated tax systems fund

No limit

Dyed diesel fuel fee fund

No limit

Electronic databases fee fund

$2,350,000

Provided, That expenditures shall be made from the electronic databases fee fund to provide
for taxpayer assistance through upgrades, enhancements and refinements to the state ap-
praisal system.

(c) On July 1, 1998, October 1, 1998, January 1, 1999, and April 1, 1999, the director
of accounts and reports shall transfer $7,400,000 from the state highway fund of the de-
partment of transportation to the division of vehicles operating fund of the department of
revenue for the purpose of financing the cost of operation and general expense of the division
of vehicles and related operations of the department of revenue.

(d) On August 1, 1998, the director of accounts and reports shall transfer $100,000 from
the accounting services recovery fund of the department of administration to the setoff
services revenue fund of the department of revenue for reimbursing costs of recovering
amounts owed state agencies under K.S.A. 75-6201 et seq., and amendments thereto.

(e) On August 1, 1998, the director of accounts and reports shall transfer $50,000 from
the social welfare fund of the department of social and rehabilitation services to the child
support enforcement contractual agreement fund of the department of revenue to reimburse
costs of administrative expenses of child support enforcement activities under the agree-
ment.

(f) On August 1, 1998, and on the first day of each month thereafter during fiscal year
1999, the secretary of revenue shall report to the director of the budget and the director of
the legislative research department (1) the amount of any increase in the amount of taxes,
interest and penalties collected in the immediately preceding month that is attributable to
the implementation of the automated tax systems authorized by K.S.A. 75-5147 and amend-
ments thereto, and (2) that portion of such monthly increase in the amount of taxes, interest
and penalties which is currently required to pay one or more vendors pursuant to contracts
entered into under K.S.A. 75-5147 and amendments thereto for the acquisition or imple-
mentation of such automated tax systems. Upon receipt of each such report from the sec-
retary of revenue, the director of the budget and the director of the legislative research
department shall jointly certify to the director of accounts and reports the amount reported
that is required to be paid to such vendors and the director of accounts and reports shall
transfer the amount certified from the state general fund to the automated tax systems fund
of the department of revenue. On or before October 10, 1998, January 10, 1999, and April
10, 1999, the secretary of revenue shall submit a report accounting for all amounts credited
to and expended from the automated tax systems fund of the department of revenue to the
director of the budget, the director of the legislative research department, the chairperson
of the house committee on appropriations and the chairperson of the senate committee on
ways and means and shall submit a report on the implementation of the automated tax
systems to the joint committee on computers and telecommunications.

Sec. 108.

KANSAS LOTTERY (a) There is appropriated for the above agency from the following special revenue fund
or funds 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:

Lottery prize payment fund

No limit

Lottery operating fund

$8,411,221

Provided, That all expenditures from the lottery operating fund for on-line terminal com-
munication charges, for on-line vendor commission payments, for instant ticket printing
charges, or for refunds and transfers shall be in addition to any expenditure limitation
imposed on this fund: Provided further, That expenditures from this fund for official hos-
pitality shall not exceed $5,000: And provided further, That any expenditure from the lottery
operating fund to reimburse the audit services fund of the division of legislative post audit
for a financial-compliance audit in an amount certified by the legislative post auditor shall
be in addition to any expenditure limitation imposed on the lottery operating fund for the
fiscal year ending June 30, 1999.

(b) Notwithstanding K.S.A. 74-8711 and amendments thereto, monthly transfers made
from the lottery operating fund to the state gaming revenue fund pursuant to subsection
(d) of K.S.A. 74-8711 and amendments thereto shall be an amount equal to not less than
30.75% of total monthly revenues from the sales of lottery tickets and shares less estimated
returned tickets.

(c) The director of accounts and reports is hereby directed to credit any transfer from
the lottery operating fund to the state gaming revenues fund made after June 30, 1998, to
the fiscal year commencing on July 1, 1998.

(d) Notwithstanding any other provision in law, no transfers shall be made during fiscal
year 1999 to any fund of the Kansas bureau of investigation for any purpose. All payments
for services provided by the Kansas bureau of investigation shall be paid by the Kansas
lottery in accordance with subsection (b) of K.S.A. 75-5516, and amendments thereto, pur-
suant to bills which are presented in a timely manner by the Kansas bureau of investigation
for services rendered. Any expenditure from the lottery operating fund to reimburse the
Kansas bureau of investigation for professional services and fees in an amount certified by
the director of the Kansas bureau of investigation shall be in addition to any expenditure
limitation imposed on the lottery operating fund for the fiscal year ending June 30, 1999.

(e) The executive director of the Kansas lottery shall notify immediately in writing the
chairperson of the senate ways and means committee and the chairperson of the house
appropriations committee, and shall send a copy of such notice to the director of the leg-
islative research department, if and when the current president and chief executive officer
of the G-TECH corporation, William Y. O'Connor, resigns or is fired from one or both of
his current positions with G-TECH corporation.

Sec. 109.

KANSAS RACING AND GAMING COMMISSION (a) There is appropriated for the above agency from the following special revenue fund
or funds 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:

State racing fund

$3,124,974

Provided, That all expenditures from the state racing fund for refunds and transfers shall
be in addition to any expenditure limitation imposed on this fund: Provided further, That
expenditures from this fund for official hospitality shall not exceed $2,500: And provided
further, That any expenditure from the state racing fund to reimburse the audit services
fund of the division of legislative post audit for a financial-compliance audit in an amount
certified by the legislative post auditor shall be in addition to any expenditure limitation
imposed on the state racing fund for the fiscal year ending June 30, 1999.

Racing reimbursable expense fund

No limit

Racing applicant deposit fund

No limit

Kansas horse breeding development fund

No limit

Kansas greyhound breeding development fund

No limit

Racing investigative expense fund

No limit

Horse fair racing benefit fund

No limit

Tribal gaming fund

No limit

(b) On July 1, 1998, the director of accounts and reports shall transfer $450,000 from
the state general fund to the tribal gaming fund of the Kansas racing and gaming commission.

(c) During the fiscal year ending June 30, 1999, the director of accounts and reports
shall transfer one or more amounts certified by the executive director of the state gaming
agency from the tribal gaming fund to the state general fund: Provided, That all such trans-
fers shall be for the purpose of reimbursing the state general fund for the amount equal to
the net amount obtained by subtracting (1) the aggregate of any costs incurred by the state
gaming agency during fiscal year 1999 for any arbitration or litigation in connection with
the administration and enforcement of tribal-state gaming compacts or the provisions of the
tribal gaming oversight act, from (2) the aggregate of the amounts transferred to the tribal
gaming fund of the Kansas racing and gaming commission during fiscal year 1999 for the
operating expenditures for the state gaming agency and any other expenses incurred in
connection with the administration and enforcement of tribal-state gaming compacts or the
provisions of the tribal gaming oversight act.

(d) Notwithstanding any other provision in law, no transfers shall be made from the
state racing fund to any fund of the Kansas bureau of investigation for any purpose. All
payments for services provided by the Kansas bureau of investigation shall be paid by the
Kansas racing and gaming commission in accordance with subsection (b) of K.S.A. 75-5516
and amendments thereto, pursuant to bills which are presented in a timely manner by the
Kansas bureau of investigation for services rendered. Any expenditure from the state racing
fund to reimburse the Kansas bureau of investigation for professional services and fees in
an amount certified by the director of the Kansas bureau of investigation shall be in addition
to any expenditure limitation imposed on the state racing fund for the fiscal year ending
June 30, 1999.

(e) In addition to the other purposes for which expenditures may be made from the
moneys appropriated in the tribal gaming fund for fiscal year 1999 for the Kansas racing
and gaming commission by this or other appropriation act of the 1998 regular session of the
legislature, expenditures may be made from the tribal gaming fund for fiscal year 1999 for
the state gaming agency regulatory oversight of class III gaming, including but not limited
to the regulatory oversight and law enforcement activities of monitoring compliance with
tribal-state gaming compacts and conducting investigations of violations of tribal-state gam-
ing compacts, investigations of criminal violations of the laws of this state at tribal gaming
facilities, criminal violations of the tribal gaming oversight act, and investigations of other
criminal activities related to tribal gaming, which are hereby authorized.

(f) Notwithstanding provisions in K.S.A. 74-8826 and amendments thereto, and not-
withstanding any agreements between the executive director of the state racing and gaming
commission and the director of accounts and reports, the director of the state racing and
gaming commission shall reduce the current monthly amount from $300,000 to $250,000
when determining what constitutes a sufficient cash balance in the state racing fund.

(g) In addition to the other purposes for which expenditures may be made from the
moneys appropriated in the state racing fund for fiscal year 1999 for the Kansas racing and
gaming commission by this or other appropriation act of the 1998 regular session of the
legislature, expenditures may be made from the state racing fund for fiscal year 1999 for
paying salaries and wages of agency personnel performing criminal history record checks,
background investigations and other investigations specified in statute: Provided, That, not-
withstanding any other provision in law, including K.S.A. 1997 Supp. 74-8805, 74-8806 and
74-8814 and amendments thereto, law enforcement agents of the Kansas racing and gaming
commission are hereby authorized and directed to conduct criminal history record checks,
background investigations and other investigations specified in statute.

Sec. 110.

DEPARTMENT OF COMMERCE AND HOUSING (a) There is appropriated for the above agency from the state general fund the following:

State operations

$1,970,802

Provided, That any unencumbered balance in the state operations account in excess of $100
as of June 30, 1998, is hereby reappropriated for fiscal year 1999: Provided, however, That
expenditures from such reappropriated balance shall not exceed $1,134 except upon ap-
proval of the state finance council: Provided further, That expenditures may be made from
the state operations account for loans pursuant to loan agreements which are hereby au-
thorized to be entered into by the secretary of commerce and housing in accordance with
any such repayment provisions and other terms and conditions that may be prescribed by
the secretary therefor under programs of the department.

(b) There is appropriated for the above agency from the following special revenue fund
or funds 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:

Publication and other sales fund

No limit

Conversion of equipment and materials fund

No limit

Conference registration and disbursement fund

No limit

Kansas venture capital companies certificate fee fund

No limit

Linger longer program fund

No limit

Trademark fund

No limit

Low income housing tax credit fee fund

No limit

Provided, That expenditures may be made from the low income tax credit fee fund for loans
pursuant to loan agreements which are hereby authorized to be entered into by the secretary
of commerce and housing in accordance with such repayment provisions and other terms
and conditions as may be prescribed by the secretary therefor under the low income housing
tax credit program: Provided further, That all moneys received by the department of com-
merce and housing for repayment of loans made under the low income housing tax credit
program shall be deposited in the state treasury and credited to this fund: And provided
further, That, in addition to the other purposes for which expenditures may be made from
the low income housing tax credit fee fund, expenditures may be made from such fund for
projects of the Kansas housing development corporation and related operating expenses of
such corporation: And provided further, That all such expenditures for projects and oper-
ating expenses shall be subject to the approval of the secretary of commerce and housing:
And provided further, That such projects shall include, but not be limited to, (1) increasing
housing opportunities for the citizens of Kansas, (2) purchasing, developing and transferring
housing projects, (3) incurring obligations related to any such projects, and (4) establishing
partnerships and lending relationships with local communities and entities in the private
sector.

Flood mitigation assistance federal fund

No limit

Kansas economic opportunity initiatives fund

No limit

Trade show promotion fund

No limit

Kansas tourist attraction matching grant development fund

No limit

Greyhound tourism fund

No limit

Reimbursement and recovery fund

No limit

Housing assistance program--federal fund

No limit

Community development block grant--federal fund

No limit

Community development block grant--federal fund--revolving loanaccount

No limit

HOME--federal fund

No limit

Provided, That, in addition to the other purposes for which expenditures may be made from
the HOME--federal fund, expenditures may be made from such fund for projects of the
Kansas housing development corporation and related operating expenses of such corpora-
tion: Provided further, That all such expenditures for projects and operating expenses shall
be subject to the approval of the secretary of commerce and housing: And provided further,
That such projects shall include, but not be limited to, (1) increasing housing opportunities
for the citizens of Kansas, (2) purchasing, developing and transferring housing projects, (3)
incurring obligations related to any such projects, and (4) establishing partnerships and
lending relationships with local communities and entities in the private sector.

Community services block grant--federal fund

No limit

Other grants fund

No limit

Provided, That the above agency is authorized to make expenditures from the other grants
fund of any moneys credited to this fund from any individual grant if the grant is: (1) Less
than $250,000 in the aggregate, and (2) does not require the matching expenditure of any
other moneys in the state treasury during the current or any ensuing fiscal year: Provided,
however, That no grant that is greater than $250,000 in the aggregate or that requires the
matching expenditure of any other moneys in the state treasury during the current or any
ensuing fiscal year, shall be deposited to the credit of this fund.

Weatherization block grant--federal fund

No limit

Energy winterization--federal fund

No limit

DOE training and assistance--federal fund

No limit

Kansas export loan guarantee fund

No limit

HUD emergency shelter grants--federal fund

No limit

National main street center fund

No limit

State housing trust fund

No limit

Provided, That, in addition to the other purposes for which expenditures may be made from
the state housing trust fund, expenditures may be made from such fund for projects of the
Kansas housing development corporation and related operating expenses of such corpora-
tion: Provided further, That all such expenditures for projects and operating expenses shall
be subject to the approval of the secretary of commerce and housing: And provided further,
That such projects shall include, but not be limited to, (1) increasing housing opportunities
for the citizens of Kansas, (2) purchasing, developing and transferring housing projects, (3)
incurring obligations related to any such projects, and (4) establishing partnerships and
lending relationships with local communities and entities in the private sector.

IMPACT program services fund

No limit

IMPACT program repayment fund

No limit

Kansas partnership fund

No limit

Provided, That the interest rate on any loan made from the Kansas partnership fund shall
be annually indexed to the federal discount rate.

State economic development initiatives fund

No limit

General fees fund

No limit

Market development fund

No limit

Provided, That expenditures may be made from the market development fund for loans
pursuant to loan agreements which are hereby authorized to be entered into by the secretary
of commerce and housing in accordance with repayment provisions and other terms and
conditions as may be prescribed by the secretary therefor under the agricultural value added
center program: Provided further, That all moneys received by the department of commerce
and housing for repayment of loans made under the agricultural value added center program
shall be deposited in the state treasury and credited to this fund.

Kansas existing industry expansion fund

No limit

Provided, That expenditures may be made from the Kansas existing industry expansion fund
for loans pursuant to loan agreements which are hereby authorized to be entered into by
the secretary of commerce and housing in accordance with repayment provisions and other
terms and conditions as may be prescribed by the secretary therefor under the Kansas
existing industry expansion program: Provided further, That all moneys received by the
department of commerce and housing for repayment of loans made under the Kansas ex-
isting industry expansion program shall be deposited in the state treasury and credited to
this fund.

(c) Expenditures may be made by the above agency from the state economic develop-
ment initiatives fund for the following specified purposes: Provided, That expenditures from
the state economic development initiatives fund other than refunds authorized by law for
the following specified purposes shall not exceed the limitations prescribed therefor as fol-
lows:

Capital formation account

Kansas economic development research and development account

Kansas economic development endowment account

$14,761,729

Provided, That, except upon approval of expenditures for any other purposes by the state
finance council acting on this matter which is hereby characterized as a matter of legislative
delegation and subject to the guidelines prescribed in subsection (c) of K.S.A. 75-3711c and
amendments thereto, expenditures from the Kansas economic development endowment
account of the state economic development initiatives fund may be made only for the pur-
poses specifically authorized by this or other appropriation act.

(d) Expenditures may be made by the above agency from the Kansas economic devel-
opment endowment account of the state economic development initiatives fund for the
following specified purposes: Provided, That expenditures from the Kansas economic de-
velopment endowment account of the state economic development initiatives fund other
than refunds authorized by law for the following specified purposes shall not exceed the
limitations prescribed therefor as follows:

State operations (including official hospitality)

$7,982,829

Provided, That expenditures may be made from the state operations (including official hos-
pitality) subaccount of the Kansas economic development endowment account of the state
economic development initiatives fund for loans pursuant to loan agreements which are
hereby authorized to be entered into by the secretary of commerce and housing in accord-
ance with repayment provisions and other terms and conditions as may be prescribed by
the secretary therefor under the agricultural value added center program: Provided further,
That, in addition to other purposes for which expenditures may be made by the department
of commerce and housing from this account, the secretary of commerce and housing shall
make expenditures from this account to disburse a grant to the Mid-America world trade
center located in Wichita, Kansas, in the amount of $50,000: And provided further, That
such grant shall be disbursed with only the requirement of that an annual report of activities
of the Mid-America world trade center shall be provided to the joint committee on economic
development prior to the commencement of the 1999 regular session of the legislature: And
provided further, That such grant shall be disbursed directly to the Mid-America world
trade center without any additional requirements or further procedures.

Kansas industrial training program and Kansas industrial retrainingprogram

$3,850,000

Grants to small business development centers

$525,000

Grants to certified development companies

$475,000

Provided, That expenditures may be made from the grants to certified development com-
panies subaccount of the Kansas economic development endowment account of the state
economic development initiatives fund for certified development companies that have been
determined to be qualified for such grants by the secretary of commerce and housing, except
that expenditures for such grant shall not be made for grants to more than 10 certified
development companies that have been determined to be qualified for such grants by the
secretary of commerce and housing.

Trade show promotion program

$170,000

Community capacity building grant program

$250,000

Mainstreet development grants

$216,800

Tourism grants

$452,100

Training equipment grant

$250,000

Agriculture products development

$540,000

Kansas existing industry expansion program

No limit

Provided, That expenditures may be made from the Kansas existing industry expansion
program subaccount of the Kansas economic development endowment account of the state
economic development initiatives fund for loans pursuant to loan agreements which are
hereby authorized to be entered into by the secretary of commerce and housing in accord-
ance with repayment provisions and other terms and conditions as may be prescribed by
the secretary therefor under the Kansas existing industry expansion program.

(e) On August 15, 1998, and December 15, 1998, the director of accounts and reports
shall transfer $2,125,000 from the Kansas economic development account of the state ec-
onomic development initiatives fund of the department of commerce and housing to the
Kansas economic opportunities initiatives fund.

(f) The secretary of commerce and housing is hereby authorized to fix, charge and
collect fees during the fiscal year ending June 30, 1999, for (1) the services provided under
the low-income housing tax credit program, private activity bond program, mortgage cer-
tificates/mortgage revenue bond program and under other programs of the department of
commerce and housing providing similar services and for which fees are not specifically
prescribed by statute, (2) the provision and administration of conferences held for the pur-
poses of programs and activities of the department of commerce and housing and for which
fees are not specifically prescribed by statute, (3) sale of Kansas magazine and other
publications of the department of commerce and housing and for sale of educational and
other promotional items and for which fees are not specifically prescribed by statute, and
(4) promotional and other advertising and related economic development activities and
services provided under economic development programs and activities of the department
of commerce and housing, including those provided at tourist information centers: Provided,
That such fees shall be fixed in order to recover all or part of the operating expenses incurred
in providing such services, conferences, publications and items, advertising and other eco-
nomic development activities and services provided under economic development programs
and activities of the department of commerce and housing for which fees are not specifically
prescribed by statute: Provided further, That all such fees shall be credited to one or more
special revenue funds of the department of commerce and housing as specified by the
secretary of commerce and housing: And provided further, That expenditures may be made
from such special revenue funds of the department of commerce and housing for fiscal year
1999, in accordance with the provisions of this act or any appropriation act of the 1998
regular session of the legislature, for operating expenses incurred in providing such services,
conferences, publications and items, advertising, programs and activities and for operating
expenses incurred in providing similar economic development activities and services pro-
vided under economic development programs and activities of the department of commerce
and housing.

(g) In addition to the other purposes for which expenditures may be made by the above
agency from the Kansas economic development endowment account of the state economic
development initiatives fund for fiscal year 1999, expenditures may be made by the above
agency from the unencumbered balance as of June 30, 1998, in the rehabilitation and repair
subaccount of the Kansas economic development endowment account of the state economic
development initiatives fund for fiscal year 1999 for the following capital improvement
project or projects: Rehabilitation and repair--travel information centers: Provided, That
such expenditures shall not exceed the amount of the unencumbered balance in such su-
baccount on June 30, 1998: Provided further, That all expenditures from the unencumbered
balance of such subaccount shall be in addition to any expenditure limitation imposed on
the total expenditures from the Kansas economic development endowment account of the
state economic development initiatives fund for fiscal year 1999.

(h) On August 15, 1998, and December 15, 1998, the director of accounts and reports
shall transfer $400,000 from the Kansas economic development endowment account of the
state economic development initiatives fund to the Kansas existing industry expansion pro-
gram.

(i) In addition to other purposes for which expenditures may be made by the department
of commerce and housing for fiscal year 1999 from any account of the state general fund
or from any account of any special revenue fund appropriated by this or any other appro-
priation act of the 1998 regular session of the legislature for fiscal year 1999 for the de-
partment of commerce and housing, expenditures shall be made by the department of
commerce and housing from such appropriations for fiscal year 1999 to transfer, effective
on the first day of the first payroll period chargeable to fiscal year 1999, the 2.0 full-time
equivalent employees of the department of commerce and housing who are engaged in the
operation of the state capitol tourist information center to the state historical society.

Sec. 111.

KANSAS, INC. (a) There is appropriated for the above agency from the state general fund the following:

Kansas, Inc.

$169,626

Provided, That any unencumbered balance in the Kansas, Inc. account in excess of $100 as
of June 30, 1998, is hereby reappropriated for fiscal year 1999: Provided, however, That
expenditures from such reappropriated balance shall not exceed $1,574 except upon ap-
proval of the state finance council.

(b) There is appropriated for the above agency from the following special revenue fund
or funds 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:

Kansas, Inc. matching fund

No limit

Conversion of materials and equipment fund

No limit

Information network of Kansas fund

No limit

Provided, That expenditures from the information network of Kansas fund shall not be
considered to be part of the private sector match required by K.S.A. 74-8009a and amend-
ments thereto.

EDIF fund

$169,563

Conversion of materials and equipment fund

No limit

(c) On July 15, 1998, or as soon thereafter as moneys are available, the director of
accounts and reports shall transfer $169,563 from the Kansas economic development en-
dowment account of the state economic development initiatives fund of the department of
commerce and housing to the EDIF fund of Kansas, Inc.

Sec. 112.

KANSAS TECHNOLOGY ENTERPRISE CORPORATION (a) There is appropriated for the above agency from the following special revenue fund
or funds 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:

Economic development research and development fund

$13,986,956

MAMTC federal fund

No limit

KTEC special revenue fund

No limit

(b) Expenditures may be made by the above agency from the economic development
research and development fund for the following specified purposes: Provided, That ex-
penditures from the economic development research and development fund other than
refunds authorized by law for the following specified purposes shall not exceed the limita-
tions prescribed therefor as follows:

Operations, assistance and grants (including official hospitality)

$13,986,956

(c) On July 15, 1998, or as soon thereafter as moneys are available, the director of
accounts and reports shall transfer $1,152,595 from the Kansas economic development
endowment account of the state economic development initiatives fund of the department
of commerce and housing to the economic development research and development fund of
the Kansas technology enterprise corporation.

(d) On August 15, 1998, and on the 15th day of each month thereafter during the fiscal
year ending June 30, 1999, or as soon after each such date as moneys are available, the
director of accounts and reports shall transfer $1,152,588 from the Kansas economic de-
velopment endowment account of the state economic development initiatives fund of the
department of commerce and housing to the economic development research and devel-
opment fund of the Kansas technology enterprise corporation.

(e) No moneys appropriated for the fiscal year ending June 30, 1999, by this or other
appropriation act of the 1998 regular session of the legislature for the Kansas technology
enterprise corporation shall be expended for any bonus or other payment of additional
compensation for any officer or employee of the Kansas technology enterprise corporation,
or any subsidiary corporation, agency or instrumentality thereof, except longevity bonus
payments pursuant to K.S.A. 75-5541 and amendments thereto or as otherwise specifically
authorized by statute.

Sec. 113. Position limitations. (a) The number of full-time and regular part-time posi-
tions equated to full-time, excluding seasonal and temporary positions, paid from appropri-
ations for fiscal year 1999 made in this or other appropriation act of the 1998 regular session
of the legislature for the following agencies shall not exceed the following, except upon
approval of the state finance council:

State Board of Tax Appeals

30.0

Department of Revenue

1,179.5

Kansas Lottery

89.0

Kansas Racing and Gaming Commission--state racing operations

42.0

Kansas Racing and Gaming Commission--state gaming agency

20.0

Department of Commerce and Housing

132.0

Sec. 114.

DEPARTMENT OF REVENUE--HOMESTEAD PROPERTY TAX REFUNDS (a) There is appropriated for the above agency from the state general fund the following:

Homestead tax refunds

$12,000,000

Provided, That any unencumbered balance in the homestead tax refunds account in excess
of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999.

Sec. 115.

DEPARTMENT OF HUMAN RESOURCES (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures

$1,772,220

Provided, That any unencumbered balance in the operating expenditures account in excess
of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999: Provided further,
That in addition to the other purposes for which expenditures may be made by the above
agency from this account for the fiscal year ending June 30, 1999, expenditures may be
made from this account for the costs incurred for court reporting under K.S.A. 72-5413 et
seq. and 75-4321 et seq., and amendments thereto: And provided further, That expenditures
from this account for official hospitality by the secretary of human resources shall not exceed
$1,000.

Any unencumbered balance in excess of $100 as of June 30, 1998, in each of the following
accounts is hereby reappropriated for fiscal year 1999: Welfare to work grant--state match.

(b) There is appropriated for the above agency from the following special revenue fund
or funds 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:

Workmen's compensation fee fund

$7,713,852

Conversion of materials and equipment fund

Occupational health and safety--federal fund

$387,221

Boiler inspection fee fund

No limit

Special employment security fund

No limit

Provided, That expenditures may be made from the special employment security fund for
the public employee relations board program: Provided, however, That expenditures from
this fund for the public employee relations board program shall not exceed $30,997.

Employment security administration fund

No limit

State workplace health and safety fund

No limit

Wage claims assignment fee fund

No limit

Employment security computer systems institute fund

No limit

JTPA title II non-state operations fund

No limit

JTPA title II state operations fund

No limit

JTPA title III non-state operations fund

No limit

JTPA title III discretion non-state operations fund

No limit

JTPA EDWAA state operations fund

No limit

JTPA EDWAA discretion state operations fund

No limit

Welfare to work grant--federal fund

No limit

Occupational information system--federal fund

$110,792

Provided, That any transfers of moneys from the occupational information system--federal
fund to state agencies or to any other special revenue fund of the above agency shall be in
addition to any expenditure limitation imposed on this fund.

Human resources special projects fund

No limit

Advisory committee on Hispanic affairs--donations fund

No limit

Committee on employment of the handicapped--gifts, grants and dona-tions fund

No limit

Federal indirect cost offset fund

$286,231

Dispute resolution fund

No limit

Provided, That all moneys received by the secretary of human resources for reimbursement
of expenditures for the costs incurred for mediation under K.S.A. 72-5427 and amendments
thereto and for fact-finding under K.S.A. 72-5428 and amendments thereto shall be depos-
ited in the state treasury and credited to the dispute resolution fund: Provided further, That
expenditures may be made from this fund to pay the costs incurred for mediation under
K.S.A. 72-5427 and amendments thereto and for fact-finding under K.S.A. 72-5428 and
amendments thereto, subject to full reimbursement therefor by the board of education and
the professional employees' organization involved in such mediation and fact-finding pro-
cedures.

Employment security fund

No limit

(c) On July 1, 1998, the director of accounts and reports shall transfer all moneys in the
one stop career center system fund from the one stop career center system fund of the
department of human resources to the Kansas economic development endowment account
of the state economic development initiatives fund of the department of commerce and
housing. On July 1, 1998, after such transfer, the one stop career system fund is hereby
abolished.

(d) On July 1, 1998, the director of accounts and reports shall transfer $175,000 from
the state workers compensation self-insurance fund of the department of administration to
the state workplace health and safety fund of the department of human resources for the
purpose of reimbursing costs of providing a state workplace health and safety program for
state employees under K.S.A. 44-575 and amendments thereto.

Sec. 116.

KANSAS COMMISSION ON VETERANS AFFAIRS (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures--veterans affairs

$1,543,362

Provided, That any unencumbered balance in the operating expenditures--veterans affairs
account in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999:
Provided, however, That expenditures from such reappropriated balance shall not exceed
$5,577 except upon approval of the state finance council.

Operating expenditures--Kansas soldiers' home

$1,204,465

Provided, That any unencumbered balance in the operating expenditures--Kansas soldiers'
home account in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal year
1999: Provided, however, That no expenditures from such reappropriated balance shall be
made except upon approval of the state finance council.

Operating expenditures--Persian Gulf War health initiative program

$101,856

Kansas commission on veterans affairs fund

$104,605

Soldiers' home fee fund

$3,427,965

Benefit and gift fund

No limit

Veterans' home fee fund

Persian Gulf War veterans health initiative fund

No limit

Sec. 117.

DEPARTMENT OF HEALTH AND ENVIRONMENT (a) There is appropriated for the above agency from the state general fund the following:

Salaries and wages

$14,408,029

Provided, That any unencumbered balance in the salaries and wages account in excess of
$100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999: Provided, however,
That expenditures from such reappropriated balance shall not exceed $79,825 except upon
approval of the state finance council.

Salaries and wages for swine production facility inspectors

$580,700

Other operating expenditures (including official hospitality)

$4,611,205

Provided, That any unencumbered balance in the other operating expenditures (including
official hospitality) account in excess of $100 as of June 30, 1998, is hereby reappropriated
for fiscal year 1999: Provided, however, That expenditures from such reappropriated balance
shall be made only upon (1) approval of the state finance council or (2) submitting to the
legislative coordinating council prior written notice of the amount and purpose of an ex-
penditure to be made from the amount reappropriated: Provided further, That expenditures
shall be made from this account for the purposes of reorganization and reassignment of
duties and staff with the division of health of the department of health and environment,
which organization and reassignment is hereby authorized and directed to be conducted by
the secretary of health and environment for the purposes of providing better service and
greater efficiency.

Vaccine purchases

$824,000

Child care licensing operating expenditures

$750,365

Adult care homes criminal record checks operating expenditures

$200,000

Provided, That any unencumbered balance in the adult care homes criminal record checks
operating expenditures account in excess of $100 as of June 30, 1998, is hereby reappro-
priated for fiscal year 1999.

Infant and toddler program

$1,992,000

Aid to local units

$4,581,548

Provided, That expenditures from the aid to local units account for child care licensure
activities are hereby authorized to be made for contracts which are hereby authorized to be
entered into by the secretary of health and environment with local health departments,
private individuals and others: Provided further, That all expenditures from this account for
state financial assistance to local health departments shall be in accordance with the formula
prescribed by K.S.A. 65-241 through 65-246 and amendments thereto: And provided fur-
ther, That, notwithstanding any law to the contrary, such financial assistance shall be subject
to the condition that each individual who is currently on AIDS drug assistance shall continue
to receive AIDS drug assistance and shall not be denied such AIDS drug assistance.

Aid to local units--primary health projects

$1,520,840

Provided, That no expenditures shall be made from the aid to local units--primary health
projects account to disburse any amount to a local government or other health care unit
until the amount has been matched on a $1 for $1 basis by the local government or other
health care unit on a cash or in-kind basis, or some combination thereof, as approved by
the secretary of health and environment.

Teen pregnancy prevention activities

$578,226

Provided, That expenditures from the teen pregnancy prevention activities account shall be
made to give highest priority to recipients of aid to families with dependent children and
other medicaid eligible teens: Provided further, That expenditures may be made from this
account for grants made pursuant to K.S.A. 65-1,158 and amendments thereto: Provided,
however, That no expenditures shall be made from this account to disburse any amount to
the recipient of any grant pursuant to K.S.A. 65-1,158 and amendments thereto until the
amount has been matched in the manner prescribed by K.S.A. 65-1,158 and amendments
thereto.

Aid to local units--family planning

$98,880

Provided, That all expenditures from the aid to local units--family planning account shall
be in accordance with grant agreements entered into by the secretary of health and envi-
ronment and grant recipients: Provided further, That all expenditures from this account
pursuant to such grant agreements shall be made only for the costs of pap smears or initial
and follow-up laboratory tests.

Any unencumbered balance in excess of $100 as of June 30, 1998, in each of the following
accounts is hereby reappropriated for fiscal year 1999: Cherokee county superfund match;
AIDS medication shortfall; year 2000 computer repair.

(b) There is appropriated for the above agency from the following special revenue fund
or funds 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:

Environmental permit fund

$381,848

Air quality fee fund

$4,057,731

Title XIX fund

$3,829,197

Provided, That any transfers of moneys from the title XIX fund to other state agencies shall
be in addition to any expenditure limitation imposed on this fund: Provided further, That
transfers of moneys from this fund to the state fire marshal may be made pursuant to a
contract which is hereby authorized to be entered into by the secretary of health and en-
vironment with the state fire marshal to provide fire and safety inspections for adult care
homes and hospitals.

Health care database fee fund

$3,000

Laboratory medicaid cost recovery fund

$120,000

Hazardous waste collection fund

$60,000

Driving under the influence equipment fund

$99,104

Provided, That expenditures from the driving under the influence equipment fund may be
made only for the purpose of purchasing blood or breath alcohol concentration testing
equipment.

Power generating facility fee fund

$133,616

Breast and cervical cancer program and detection fund

$1,558,092

Provided, That expenditures from the breast and cervical cancer program and detection
fund for salaries and wages shall not exceed $143,707.

Health and environment training fee fund

$183,785

Provided, That expenditures may be made from the health and environment training fee
fund for acquisition and distribution of health and environment program literature and films
and for participation in conducting training seminars: Provided further, That the secretary
of health and environment is hereby authorized to fix, charge and collect fees in order to
recover costs incurred for such acquisition and distribution of literature and films and for
such seminars: And provided further, That such fees may be fixed in order to recover all or
part of such costs: And provided further, That all moneys received from such fees shall be
deposited in the state treasury and credited to this fund.

Capacity management assistance fund

Food service inspection reimbursement fund

$510,000

Mined-land conservation and reclamation fee fund

$69,352

Insurance statistical plan fund

$328,226

Provided, That expenditures from the insurance statistical plan fund for salaries and wages
shall not exceed $148,321.

Solid waste management fund

$5,763,133

Provided, That prior to making any expenditures for fiscal year 1999 from the solid waste
management fund for the city of Shawnee, Kansas, waste dump cleanup project, the sec-
retary of health and environment shall review the plan for the cleanup of the city of Shawnee,
Kansas, waste dump: Provided further, That the secretary of health and environment shall
take such actions as may be indicated in order to cooperate with the city of Shawnee, Kansas,
to effectuate such cleanup project: Provided, however, That no expenditures shall be made
from this fund to provide for the construction or development of a city park on the site of
the city of Shawnee, Kansas, waste dump cleanup project.

Public water supply fee fund

$252,114

Voluntary cleanup fund

$249,044

Storage tank fee fund

$85,755

Conversion of materials and equipment fund

No limit

Nuclear safety emergency preparedness special revenue fund

$214,543

Provided, That all moneys received from the adjutant general from the nuclear safety emer-
gency preparedness fee fund shall be credited to the nuclear safety emergency preparedness
special revenue fund.

Health facilities review fund

$202,547

Waste tire management fund

$1,204,052

Provided, That expenditures from the waste tire management fund for payment of com-
pensation and other expenses of employing personnel to carry out the duties of the secretary
of health and environment pursuant to K.S.A. 65-3424 through 65-3424h and amendments
thereto shall not exceed the amount equal to 16% of the moneys credited to this fund during
fiscal year 1999 or $200,000, whichever amount is less.

Health and environment publication fee fund

$32,900

Provided, That expenditures from the health and environment publication fee fund shall be
made only for the purpose of paying the expenses of publishing documents as required by
K.S.A. 75-5662 and amendments thereto.

District coroners fund

$227,000

Provided, That, notwithstanding provisions of K.S.A. 22a-245 and amendments thereto,
moneys may be expended by the department of health and environment from the district
coroners fund for expenditures made pursuant to K.S.A. 22a-242 and amendments thereto.

Local air quality control authority regulation services fund

$23,000

Environmental response fund

$1,161,379

Remediation projects fund

Mined-land reclamation fund

$25,000

Water plan special revenue fund

$4,320,128

Adult care licensing revolving fund

Sponsored research overhead fund

No limit

Wildlife art fund

No limit

Kansas distinguished scholarship fund

No limit

Operating expenditures (including official hospitality)

$96,990,974

Provided, That any unencumbered balance in the operating expenditures (including official
hospitality) account of Kansas state university account in excess of $100 as of June 30, 1998,
is hereby reappropriated for fiscal year 1999: Provided, however, That expenditures from
this account may be made to pay faculty and staff members retiring on or after July 1, 1962,
the difference between the retirement benefits established under the former unfunded state
board of regents' retirement plan and the benefits to which these individuals would be
entitled under the Kansas public employees retirement system.

(b) There is appropriated for the above agency from the following special revenue fund
or funds all moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:

Parking fees fund

No limit

Provided, That Kansas state university may make expenditures from the parking fees fund
for debt service, financing costs and required reserves for the capital improvement project
to construct and pave campus parking lots pursuant to section 17(d) of chapter 25 of the
1989 Session Laws of Kansas: Provided, however, That all expenditures from this fund for
capital improvement projects for parking lot maintenance and improvements shall be in
addition to any expenditure limitation imposed on the total expenditures from this fund:
Provided further, That all expenditures from this fund for the payment of principal and
interest shall be in addition to any expenditure limitation imposed on this fund or any
account thereof.

General fees fund

$40,907,590

Interest on endowment fund

$80,000

Restricted fees fund

No limit

Provided, That restricted fees shall be limited to receipts for the following ac-
counts: Educational opportunity grants; technology equipment; human resources man-
agement system; computer services; copy centers; standardized test fees; placement center;
recreational services; professorships; student activities fees; army and aerospace uniforms;
aerospace uniform augmentation; biology sales and services; chemistry storeroom; field
camps; state department of education; physics storeroom; sponsored research, instruction,
public service, equipment and facility grants; ion collision laboratory--federal; chemical
engineering; nuclear engineering; contract--post office--federal government; library col-
lections; civil engineering; continuing education; sponsored construction or improvement
projects; attorney, educational and personal development, human resources; military cre-
dentials; student financial assistance; application for undergraduate programs; speech and
hearing fees; gifts; human development and family research and training; college of edu-
cation--publications and services; student financial assistance--federal reimbursement;
higher education act; guaranteed student loan application processing; student identification
card; auditorium receipts; refunds due to or from sponsors; catalog sales; emission spec-
troscopy fees; interagency consulting; sales and services of educational programs; transcript
fees; South Asian curriculum sales; human ecology storeroom; college of human ecology
sales; family resource center fees; human movement performance; application for post bac-
calaureate programs; art exhibit fees; college of education--Kansas careers; foreign student
application fee; student union repair and replacement reserve; bank compensation balance;
departmental receipts for all sales, refunds and other collections; institutional support fee;
miscellaneous renovations; speech receipts; art museum; exchange program; flight training
lab fees; off campus work study; parking fees; postage center; printing; short courses and
conferences; student government association receipts; regents educational communications
center; late registration fee; engineering equipment fee; biotechnology facility; English lan-
guage program; international programs; library expansion fee; federal direct student loans;
high-bay garage; Bramlage coliseum; and other specifically designated receipts not available
for general operations of the university: Provided further, That the state board of regents,
with the approval of the state finance council acting on this matter which is hereby char-
acterized as a matter of legislative delegation and subject to the guidelines prescribed in
subsection (c) of K.S.A. 75-3711c and amendments thereto, may amend or change this list
of restricted fees: And provided further, That all restricted fees shall be deposited to the
credit of the appropriate account of the restricted fees fund and shall be used solely for the
specific purpose or purposes for which collected: And provided further, That expenditures
may be made from this fund to purchase insurance for equipment purchased through re-
search and training grants only if such grants include money for and authorize the purchase
of such insurance: And provided further, That all amounts of tuition received from students
participating in the midwestern student exchange program shall be deposited to the credit
of the midwestern student exchange account of the restricted fees fund.

Kansas career work study program fund

No limit

Service clearing fund

No limit

Provided, That the service clearing fund shall be used for the following service activities:
Supplies stores; telecommunications services; photographic services; K-State printing serv-
ices; postage; facilities services; facilities carpool; data processing; public safety services;
facility planning services; facilities storeroom; computing activities--academic; computing
activities--administrative; and such other internal service activities as are authorized by the
state board of regents under K.S.A. 76-755 and amendments thereto.

Sponsored research overhead fund

No limit

Provided, That the above agency may transfer moneys from the sponsored research overhead
fund of Kansas state university to the sponsored research overhead fund of Kansas state
university extension systems and agriculture research programs.

Housing system suspense fund

No limit

Housing system operations fund

No limit

Housing system repairs, equipment and improvement fund

No limit

Student recreation building program fund

No limit

Coliseum operations fund

No limit

Coliseum gifts fund

No limit

Mandatory retirement annuity clearing fund

No limit

K-State sports network fund

No limit

Student health fees fund

No limit

Provided, That expenditures from the student health fees fund may be made for the pur-
chase of medical malpractice liability coverage for individuals employed on the medical
staff, including pharmacists and physical therapists, at the student health center.

Scholarship funds fund

No limit

National direct student loan fund

No limit

Nine month payroll clearing account fund

No limit

Equipment reserve fund

No limit

Provided, That expenditures from the equipment reserve fund shall be made only for the
purchase of equipment.

Howard Hughes grant fund

No limit

U.S. army research grant--metal particle chemistry fund

No limit

Board of regents--U.S. department of education awards fund

No limit

Research projects grants fund

No limit

Research projects grants matching fund

No limit

State agricultural university fund

No limit

Morrill Nelson--federal fund

No limit

Federal extension civil service retirement clearing fund

No limit

Salina--student union fees fund

No limit

Salina--dormitory and food service fees fund

No limit

Aeronautical program equipment--federal fund

No limit

Kansas distinguished scholarship fund

No limit

Tuition accountability fund

No limit

Kansas comprehensive grant fund

No limit

Temporary deposit fund

No limit

Business procurement card clearing fund

No limit

Suspense fund

No limit

Voluntary tax shelter annuity clearing fund

No limit

Agency payroll deduction clearing fund

No limit

Payroll clearing fund

No limit

(c) During the fiscal year ending June 30, 1999, the director of accounts and reports
shall transfer an amount specified by the president prior to July 1, 1999, from the general
fees fund to the equipment reserve fund.

(d) On July 1, 1998, or as soon thereafter as moneys are available, the director of ac-
counts and reports shall transfer an amount specified by the president of not to exceed
$97,924 from the general fees fund to the Perkins student loan fund.

(e) On July 1, 1998, or as soon thereafter as moneys are available, the director of ac-
counts and reports shall transfer an amount specified by the president of not to exceed
$172,000 from the general fees fund to the educational opportunity grants account of the
restricted fees fund.

(f) Upon a finding by the director of the budget that the above agency realized an
increase in receipts to the general fees fund in the summer 1998 session, fall 1998 semester,
or spring 1999 semester above comparable periods in the preceding year, which increase in
receipts resulted from increases in enrollment, changes in resident and nonresident student
mix, or the imposition of a more restrictive tuition waiver policy, or any combination thereof,
the director of the budget shall certify such amount of increased receipts to the director of
accounts and reports. Upon receipt of such certification, the director of accounts and reports
shall transfer the amount certified from the general fees fund to the tuition accountability
fund.

Sec. 132.

KANSAS STATE UNIVERSITY EXTENSION SYSTEMS AND AGRICULTURE RESEARCH PROGRAMS (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures (including official hospitality)

$724,164

Provided, That any unencumbered balance in the operating expenditures (including official
hospitality) account in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal
year 1999.

Cooperative extension service (including official hospitality)

$15,678,790

Provided, That any unencumbered balance in the cooperative extension service (including
official hospitality) account in excess of $100 as of June 30, 1998, is hereby reappropriated
for fiscal year 1999.

Agricultural experiment stations (including official hospitality)

$26,725,417

Provided, That any unencumbered balance in the agricultural experiment stations (including
official hospitality) account in excess of $100 as of June 30, 1998, is hereby reappropriated
for fiscal year 1999.

(b) There is appropriated for the above agency from the following special revenue fund
or funds all moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:

Restricted fees fund

No limit

Provided, That restricted fees shall be limited to receipts for the following accounts: Plant
pathology; technology equipment; professorships; agricultural experiment station, director's
office; agronomy--Ashland farm; KSU agricultural research center--Hays; KSU southeast
agricultural research center; horticulture research center; KSU southwest research extension
council; agronomy--general; agronomy--experimental field crop sales; entomology sales;
grain science and industry products and service sales; food and nutrition research; extension
services and publication; sponsored construction or improvement projects; gifts; animal re-
source facility; animal health and disease research; higher education act; refunds due to or
from sponsors; sales and services of educational programs; animal sciences and industry
livestock and product sales; horticulture greenhouse and farm products sales; Konza prairie
operations; departmental receipts for all sales, refunds and other collections; institutional
support fee; KSU northwest research extension center operations; research projects grants;
research projects grants matching; sponsored research, public service, equipment and fa-
cility grants; statistical laboratory; equipment/pesticide storage building; other specifically
designated receipts not available for general operations of the university: Provided further,
That the state board of regents, with the approval of the state finance council acting on this
matter which is hereby characterized as a matter of legislative delegation and subject to the
guidelines prescribed in subsection (c) of K.S.A. 75-3711c and amendments thereto, may
amend or change this list of restricted fees: And provided further, That all restricted fees
shall be deposited to the credit of the appropriate account of the restricted fees fund and
shall be used solely for the specific purpose or purposes for which collected: And provided
further, That expenditures may be made from this fund to purchase insurance for equipment
purchased through research and training grants only if such grants include money for and
authorize the purchase of such insurance: And provided further, That expenditures may be
made from the farmers' assistance, counseling and training program account of the restricted
fees fund during fiscal year 1999.

Colby experiment station fee fund

No limit

Fort Hays experiment station fee fund

No limit

Fertilizer research fund

No limit

Sponsored research overhead fund

No limit

Federal extension fund

$6,230,126

Federal experimental station fund

$3,203,829

Smith-Lever special program grant--federal fund

No limit

Kansas artificial breeding service unit fees fund

No limit

Agricultural land use-value fund

No limit

Irrigation research field fund

$181,000

(c) On July 1, 1998, or as soon thereafter as moneys are available, the director of ac-
counts and reports shall transfer $91,000 from the state water plan fund of the Kansas water
office to the irrigation research field fund of Kansas state university extension systems and
agriculture research programs.

(d) On July 1, 1998, or as soon thereafter as moneys are available, the director of ac-
counts and reports shall transfer $90,000 from the Kansas economic development endow-
ment account of the state economic development initiatives fund of the department of
commerce and housing to the irrigation research field fund of Kansas state university ex-
tension systems and agriculture research programs.

Sec. 133.

KANSAS STATE UNIVERSITY VETERINARY MEDICAL CENTER (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures (including official hospitality)

$9,309,505

Provided, That any unencumbered balance in the operating expenditures (including official
hospitality) account in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal
year 1999.

(b) There is appropriated for the above agency from the following special revenue fund
or funds all moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:

General fees fund

$4,847,749

Provided, That any transfers of moneys from the general fees fund to the equipment reserve
fund pursuant to subsection (c) shall be deemed expenditures for the purpose of the ex-
penditure limitation imposed on this fund.

Hospital and diagnostic laboratory revenue fund

$1,452,739

Provided, That all expenditures from the hospital and diagnostic laboratory revenue fund
for blood and blood products, ambulatory services, laboratory tests, and pharmaceutical and
surgical supplies shall be in addition to any expenditure limitation imposed on this fund.

Hospital and diagnostic laboratory improvement fund

No limit

Restricted fees fund

No limit

Provided, That restricted fees shall be limited to receipts for the following accounts: Spon-
sored research, instruction, public service, equipment and facility grants; technology equip-
ment; higher education act; dean of veterinary medicine receipts; gifts; application for post-
baccalaureate programs; embryo transfer unit; swine serology; sale barn; rapid focal
fluorescent inhibition test; storerooms; departmental receipts for all sales refunds and other
collections; other specifically designated receipts not available for general operation of the
Kansas state university veterinary medical center: Provided, however, That the state board
of regents, with the approval of the state finance council acting on this matter which is
hereby characterized as a matter of legislative delegation and subject to the guidelines
prescribed in subsection (c) of K.S.A. 75-3711c and amendments thereto, may amend or
change this list of restricted fees: Provided further, That all restricted fees shall be deposited
to the credit of the appropriate account of the restricted fees fund and shall be used solely
for the specific purpose or purposes for which collected: And provided further, That ex-
penditures may be made from this fund to purchase insurance for equipment purchased
through research and training grants only if such grants include money for and authorize
the purchase of such insurance.

Sponsored research overhead fund

No limit

Health professions student loan fund

No limit

H.E.W. veterinary revolving student loan fund

No limit

Student loan funds fund

No limit

Suspense fund

No limit

Equipment reserve fund

No limit

Provided, That expenditures from the equipment reserve fund shall be made only for the
purchase of equipment.

(c) During the fiscal year ending June 30, 1999, the director of accounts and reports
shall transfer an amount specified by the president of Kansas state university prior to July
1, 1999, from the general fees fund to the equipment reserve fund.

(d) During the fiscal year ending June 30, 1999, the director of accounts and reports
shall transfer an amount specified by the president of Kansas state university from the
hospital and diagnostic laboratory revenue fund to the hospital and diagnostic laboratory
improvement fund.

Sec. 134.

EMPORIA STATE UNIVERSITY (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures (including official hospitality)

$27,609,624

Provided, That any unencumbered balance in the operating expenditures (including official
hospitality) account in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal
year 1999.

(b) There is appropriated for the above agency from the following special revenue fund
or funds all moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:

Parking fees fund

No limit

Provided, That expenditures may be made from the parking fees fund for a capital improve-
ment project for parking lot improvements.

General fees fund

$8,210,994

Provided, That expenditures from the general fees fund may be made only for salaries and
wages and for other operating expenditures and shall not be made for capital improvements:
Provided further, That any transfer of moneys from this fund to the equipment reserve fund
as provided in subsection (c) shall be deemed expenditures for the purpose of the expend-
iture limitation imposed on this fund.

Interest fund

$29,000

Restricted fees fund

No limit

Provided, That restricted fees shall be limited to receipts for the following accounts: Com-
puter services, student activity; technology equipment; student union; sponsored research;
computer services; extension classes; national science foundation grants; national defense
education act; gifts and grants (for teaching, research and capital improvements); business
school contributions; state department of education (vocational); elementary and secondary
education act--federal; library services; library collections; interest on local funds; receipts
from conferences, clinics, and workshops held on campus for which no college credit is
given; physical plant reimbursements from auxiliary enterprises; midwestern exchange; de-
partmental receipts--for all sales, refunds and other collections or receipts not specifically
enumerated above: Provided, however, That the state board of regents, with the approval
of the state finance council acting on this matter which is hereby characterized as a matter
of legislative delegation and subject to the guidelines prescribed in subsection (c) of K.S.A.
75-3711c and amendments thereto, may amend or change this list of restricted fees: Pro-
vided further, That all restricted fees shall be deposited to the credit of the appropriate
account of the restricted fees fund and shall be used solely for the specific purpose or
purposes for which collected: And provided further, That expenditures may be made from
this fund to purchase insurance for equipment purchased through research and training
grants only if such grants include money for and authorize the purchase of such insurance:
And provided further, That all amounts of tuition received from students participating in
the midwestern student exchange program shall be deposited to the credit of the midwestern
student exchange account of the restricted fees fund.

Service clearing fund

No limit

Provided, That the service clearing fund shall be used for the following service activities:
Telecommunications services; office supplies inventory; state car operation; E.S.U. press
including duplicating and reproducing; postage; physical plant storeroom including motor
fuel inventory; data processing center; and such other internal service activities as are au-
thorized by the state board of regents under K.S.A. 76-755 and amendments thereto.

Commencement fees fund

No limit

Kansas career work study program fund

No limit

Student health fees fund

No limit

Bureau of educational measurements fund

No limit

Scholarship funds fund

No limit

National direct student loan fund

No limit

Economic opportunity act--work study--federal fund

No limit

Educational opportunity grants--federal fund

No limit

Basic opportunity grant program--federal fund

No limit

Research and institutional overhead fund

No limit

Equipment reserve fund

No limit

Provided, That expenditures from the equipment reserve fund shall be made only for the
purchase of equipment.

Kansas comprehensive grant fund

No limit

Housing system suspense fund

No limit

Housing system operations fund

No limit

Housing system repairs, equipment and improvement fund

No limit

Kansas distinguished scholarship fund

No limit

(c) During the fiscal year ending June 30, 1999, the director of accounts and reports
shall transfer an amount specified by the president prior to July 1, 1999, from the general
fees fund to the equipment reserve fund.

(d) On July 1, 1998, or as soon thereafter as moneys are available, the director of ac-
counts and reports shall transfer an amount specified by the president of not to exceed
$30,000 from the general fees fund to the national direct student loan fund.

(e) On July 1, 1998, or as soon thereafter as moneys are available, the director of ac-
counts and reports shall transfer an amount specified by the president of not to exceed
$70,000 from the general fees fund to the educational opportunity grants--federal fund.

(f) On July 1, 1998, or as soon thereafter as moneys are available, the director of ac-
counts and reports shall transfer $50,536 from the student union account of the restricted
fees fund of Emporia state university to the state general fund.

(g) On July 1, 1998, or as soon thereafter as moneys are available, the director of ac-
counts and reports shall transfer $2,447 from the housing systems operations fund of Em-
poria state university to the state general fund.

Sec. 135.

PITTSBURG STATE UNIVERSITY (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures (including official hospitality)

$30,326,884

Provided, That any unencumbered balance in the operating expenditures (including official
hospitality) account in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal
year 1999: Provided further, That expenditures from this account may be made to pay faculty
and staff members retiring on or after July 1, 1962, the difference between the retirement
benefits under the former unfunded state board of regents' retirement plan and the benefits
to which these individuals would be entitled under the Kansas public employees retirement
system.

(b) There is appropriated for the above agency from the following special revenue fund
or funds all moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:

Parking fees fund

No limit

Provided, That expenditures may be made from the parking fees fund for capital improve-
ment projects for parking lot improvements.

General fees fund

$9,965,170

Restricted fees fund

No limit

Provided, That restricted fees shall be limited to receipts for the following accounts: Com-
puter services; technology equipment; student activity fee accounts; commencement fees;
ROTC activities; continuing education receipts; vocational auto parts and service fees; re-
ceipts from camps, conferences and meetings held on campus; national science foundation
grants, department of education, and other federal grants, including Pell grants, SEOG
grants; flight training; library service collections and fines; state department of education
and grants from other state agencies; Midwest Quarterly; chamber music series; con-
tract--post office; gifts and grants; general fees transfer for SEOG match; intensive English
program; business and technology institute; public sector radio station activities; economic
opportunity--state match; research projects grants; career work study; regents supplemental
grants; contiguous county fees except that expenditures from the contiguous county fees
account are limited to the total tuition paid by 100 new students per year, up to a maximum
of 400 students; midwestern student exchange; departmental receipts, and other specifically
designated receipts not available for general operations of the university: Provided, however,
That the state board of regents, with the approval of the state finance council acting on this
matter which is hereby characterized as a matter of legislative delegation and subject to the
guidelines prescribed in subsection (c) of K.S.A. 75-3711c and amendments thereto, may
amend or change this list of restricted fees: Provided further, That all restricted fees shall
be deposited to the credit of the appropriate account of the restricted fees fund and shall
be used solely for the specific purpose or purposes for which collected: And provided fur-
ther, That expenditures may be made from this fund to purchase insurance for equipment
purchased through research and training grants only if such grants include money for and
authorize the purchase of such insurance: And provided further, That surplus restricted fees
moneys generated by the music department may be transferred to the Pittsburg state uni-
versity foundation, inc. for the express purpose of awarding music scholarships: And pro-
vided further, That all amounts of tuition received from students participating in the mid-
western student exchange program shall be deposited to the credit of the midwestern
student exchange account of the restricted fees fund.

Service clearing fund

No limit

Provided, That the service clearing fund shall be used for the following service activities:
Duplicating and printing services; instructional media division; office stationery and supplies;
motor carpool; postage services; telephone services; data processing; and such other internal
service activities as are authorized by the state board of regents under K.S.A. 76-755 and
amendments thereto.

Hospital and student health fees fund

No limit

Provided, That expenditures from the hospital and student health fees fund may be made
for the purchase of medical malpractice liability coverage for individuals employed on the
medical staff, including pharmacists and physical therapists, at the student health center:
Provided further, That expenditures may be made from this fund for capital improvement
projects for hospital and student health center improvements.

Perkins student loan fund

No limit

Sponsored research overhead fund

College work study fund

No limit

Nursing student loan fund

No limit

Equipment reserve fund

No limit

Provided, That expenditures from the equipment reserve fund shall be made only for the
purchase of equipment.

Housing system suspense fund

No limit

Housing system operations fund

No limit

Housing system repairs, equipment and improvement fund

No limit

Provided, That expenditures may be made from the housing system repairs, equipment and
improvement fund for capital improvement projects for housing system maintenance and
improvements.

Kansas comprehensive grant fund

No limit

Kansas distinguished scholarship program fund

No limit

Operating expenditures (including official hospitality)

$118,234,732

Provided, That any unencumbered balance in the operating expenditures (including official
hospitality) account in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal
year 1999.

Geological survey

$5,786,239

Provided, That any unencumbered balance in the geological survey account in excess of
$100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999.

(b) There is appropriated for the above agency from the following special revenue fund
or funds all moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:

Parking facilities revenue fund

No limit

Provided, That transfers of moneys from the parking facilities revenue fund to bond funds
pursuant to bond agreements shall be in addition to any expenditure limitation imposed on
this fund.

General fees fund

$74,289,000

Provided, That expenditures from the general fees fund may be made only for salaries and
wages and for other operating expenditures, but shall not be made for capital improvements:
Provided further, That any transfers of moneys from this fund to the equipment reserve
fund pursuant to subsection (c) shall be deemed expenditures for the purpose of the ex-
penditure limitation imposed on this fund: And provided further, That, subject to approval
by the state board of regents under K.S.A. 76-719 and amendments thereto, the university
of Kansas is hereby authorized to fix, charge and collect a fee of not more than $70 per
student credit hour on courses offered by the school of law for students entering law school
after April 1, 1997, and $40 per student credit hour for all other students: And provided
further, That all moneys received for such fee shall be credited to the school of law credit
hour fee account of this fund: And provided further, That expenditures from the school of
law credit hour fee account shall not exceed $830,000: And provided further, That, subject
to approval by the state board of regents under K.S.A. 76-719 and amendments thereto, the
university of Kansas is hereby authorized to fix, charge and collect a fee of not more than
$85 per student credit hour on courses offered by the school of pharmacy: And provided
further, That all moneys received for such fee shall be credited to the school of pharmacy
credit hour fee account of this fund: And provided further, That all expenditures from the
school of pharmacy credit hour fee account of this fund shall be for school of pharmacy
faculty salaries and other operating expenditures in order to provide faculty and student
support services, clerkships and externships for students, and for school of pharmacy in-
structional equipment and supplies: And provided further, That expenditures from the
school of pharmacy credit hour fee account of this fund shall not exceed $720,000: And
provided further, That all moneys received for tuition for students enrolled in courses on
the Edwards campus shall be deposited in this fund: And provided further, That the director
of accounts and reports shall transfer on a periodic basis amounts generated from such
courses in excess of $2,131,265 as specified by the chancellor of the university of Kansas,
or the chancellor's designee, from the general fees fund to the regents center development
fund.

Regents center development fund

No limit

Provided, That expenditures shall be made from this fund for program operation and de-
velopment at the regents center on the Edwards campus.

Interest fund

$20,000

Sponsored research overhead fund

No limit

Law enforcement training center fund

No limit

Provided, That expenditures may be made from the law enforcement training center fund
to cover the costs of tuition for students enrolled in the law enforcement training program
in addition to the costs of salaries and wages and other operating expenditures for the
program: Provided, however, That any academic credit granted through this program shall
not be included in the university's budgeted enrollment figures: Provided further, That the
amount of any unencumbered balance of the amount made available for expenditure from
this fund for capital improvements in fiscal year 1993 by section 9(b) of chapter 215 of the
1992 Session Laws of Kansas and amendments thereto is hereby authorized to be expended
during fiscal year 1999: And provided further, That expenditures may be made from this
fund for the acquisition of tracts of land adjacent to the law enforcement training center.

Law enforcement training center fees fund

No limit

Provided, That all moneys received for tuition from students enrolling in the basic law
enforcement training program for undergraduate or graduate credit shall be deposited in
the state treasury and credited to the law enforcement training center fees fund.

Restricted fees fund

No limit

Provided, That restricted fees shall be limited to receipts for the following accounts: Institute
for public policy and business research; technology equipment; clinical psychology confer-
ence; concert course; dormitory maintenance; speech and hearing clinic; perceptual motor
clinic; application for admission fees; named professorships; summer institutes and work-
shops; dramatics; economic opportunity act; executive management; continuing education
programs; geology field trips; gifts and grants; extension services; counseling center; invest-
ment income from bequests; housing and dormitories; endowment research salaries; engi-
neering research salaries; music and art camp; national defense education programs; child
development lab preschools; orientation center; educational placement; press publications;
Rice estate educational project; sponsored research; student activities; sale of surplus books
and art objects; building use charges; Kansas applied remote sensing program; executive
master's degree in business administration; applied English center; cartographic services;
economic education; study abroad programs; computer services; recreational activities; an-
imal care activities; geological survey; engineering equipment fee; midwestern student
exchange; department commercial receipts for all sales, refunds, and all other collections or
receipts not specifically enumerated above: Provided, further, That the state board of re-
gents, with the approval of the state finance council acting on this matter which is hereby
characterized as a matter of legislative delegation and subject to the guidelines prescribed
in subsection (c) of K.S.A. 75-3711c and amendments thereto, may amend or change this
list of restricted fees: And provided further, That all restricted fees shall be deposited to
the credit of the appropriate account of the restricted fees fund and shall be used solely for
the specific purpose or purposes for which collected: And provided further, That expendi-
tures may be made from this fund to purchase insurance for equipment purchased through
research and training grants only if such grants include money for and authorize the purchase
of such insurance: And provided further, That all amounts of tuition received from students
participating in the midwestern student exchange program shall be deposited to the credit
of the midwestern student exchange account of the restricted fees fund.

Service clearing fund

No limit

Provided, That the service clearing fund shall be used for the following service activities:
Dormitory food stores; university motor pool; furniture stores; business office stores; uni-
versity printing service; military uniforms; telecommunications service; and such other in-
ternal service activities as are authorized by the state board of regents under K.S.A. 76-755
and amendments thereto.

Health service fund

No limit

Provided, That expenditures from the health service fund may be made for the purchase of
medical malpractice liability coverage for individuals employed on the medical staff, includ-
ing pharmacists and physical therapists, at the student health center.

Kansas career work study program fund

No limit

Student union fund

No limit

Scholarship funds fund

No limit

National direct student loan fund

No limit

Provided, That expenditures from the national direct student loan fund shall be used for
the federal Perkins loan and loans for disadvantaged students programs.

Revolving student loan fund

No limit

Ford foundation--forgivable loan fund

No limit

Health professions student loan fund

No limit

Historical sites grant fund

No limit

Geological survey fund

No limit

Equipment reserve fund

No limit

Provided, That expenditures from the equipment reserve fund shall be made only for the
purchase of equipment.

Research projects grants fund

No limit

Research projects grants matching fund

No limit

Housing system suspense fund

No limit

Housing system revenue fund

No limit

Housing system operations fund

No limit

Housing system repairs, equipment and improvement fund

No limit

Educational opportunity act--federal fund

No limit

Loans for disadvantaged students fund

No limit

Prepaid tuition fees clearing fund

No limit

Kansas distinguished scholarship fund

No limit

Kansas comprehensive grant fund

No limit

Tuition accountability fund

No limit

(c) During the fiscal year ending June 30, 1999, the director of accounts and reports
shall transfer an amount specified by the chancellor prior to July 1, 1999, from the general
fees fund to the equipment reserve fund.

(d) On July 1, 1998, or as soon thereafter as moneys are available, the director of ac-
counts and reports shall transfer amounts specified by the chancellor of the university of
Kansas of not to exceed a total of $285,000 for all such amounts, from the general fees fund
to the following funds: The federal Perkins student loan fund, federal supplemental edu-
cational opportunity fund, federal disadvantaged student loan fund, the federal health pro-
fessions student loan fund and other campus-based loan programs sponsored by the federal
government.

(e) Upon a finding by the director of the budget that the above agency realized an
increase in receipts to the general fees fund in the summer 1998 session, fall 1998 semester,
or spring 1999 semester above comparable periods in the preceding year, which increase in
receipts resulted from increases in enrollment, changes in resident and nonresident student
mix, or the imposition of a more restrictive tuition waiver policy, or any combination thereof,
the director of the budget shall certify such amount of increased receipts to the director of
accounts and reports. Upon receipt of such certification, the director of accounts and reports
shall transfer the amount certified from the general fees fund to the tuition accountability
fund.

Sec. 137.

UNIVERSITY OF KANSAS MEDICAL CENTER (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures (including official hospitality)

$91,479,083

Provided, That any unencumbered balance in the operating expenditures (including official
hospitality) account in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal
year 1999: Provided further, That expenditures may be made from this account for the
purchase of malpractice insurance for students in training at the university of Kansas school
of medicine, nursing and allied health: And provided further, That such malpractice insur-
ance shall be approved by the commissioner of insurance of the state of Kansas: And pro-
vided further, That expenditures from this account may be used to reimburse medical res-
idents in residency programs located in Kansas City at the university of Kansas medical
center for the purchase of health insurance for residents' dependents.

(b) There is appropriated for the above agency from the following special revenue fund
or funds all moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:

General fees fund

$9,978,495

Provided, That any transfers of moneys from this fund to the equipment reserve fund pur-
suant to subsection (e) shall be deemed expenditures for the purpose of the expenditure
limitation imposed on this fund.

Hospital revenue fund

No limit

Provided, That all receipts for patient care services shall be credited to the hospital revenue
fund: Provided further, That the director of accounts and reports shall transfer monthly an
amount specified by the chancellor of the university of Kansas, or the chancellor's designee,
from the hospital revenue fund to the attorney collection fees and collection office expenses
account of the restricted fees fund and to the department of social and rehabilitation services
cost-sharing account of the restricted fees fund: And provided further, That all such transfers
shall be in addition to any expenditure limitation imposed on this fund: And provided fur-
ther, That expenditures may be made from this fund for renovations, remodeling and im-
provements to the existing hospital physical plant: And provided further, That no expendi-
ture shall be made for any such capital improvement project without prior approval by the
state board of regents and the director of architectural services of the department of ad-
ministration and without prior presentation of such capital improvement project to the joint
committee on state building construction: And provided further, That expenditures may be
made from this fund for official hospitality.

Restricted fees fund

No limit

Provided, That restricted fees shall be limited to the following accounts: Reimbursable items
for patients and others; technology equipment; computer services; salaries reimbursed by
the Kansas university endowment association; postgraduate fees; pathology fees; gift re-
ceipts; sponsored research; departmental commercial receipts; attorney collection fees and
collection office expenses; department of social and rehabilitation services cost-sharing; and
midwestern student exchange: Provided, however, That the state board of regents, with the
approval of the state finance council acting on this matter which is hereby characterized as
a matter of legislative delegation and subject to the guidelines prescribed in subsection (c)
of K.S.A. 75-3711c and amendments thereto, may amend or change this list of restricted
fees: And provided further, That all restricted fees shall be deposited to the credit of the
appropriate account of the restricted fees fund and shall be used solely for the specific
purpose or purposes for which collected: And provided further, That expenditures may be
made from this fund to purchase insurance for equipment purchased through research and
training grants only if such grants include money for and authorize the purchase of such
insurance: And provided further, That all amounts of tuition received from students partic-
ipating in the midwestern student exchange program shall be deposited to the credit of the
midwestern student exchange account of the restricted fees fund.

Sponsored research overhead fund

No limit

Parking fees fund

No limit

Hospital overhead reimbursements fund

No limit

University of Kansas hospital depreciation reserve fund

No limit

Service clearing fund

No limit

Provided, That the service clearing fund shall be used for the following service activities:
Print shop; purchasing storeroom; university motor pool; clothing (uniforms); physical plant
storeroom; photo supplies; telecommunications services; facilities operations discretionary
repairs; animal care; paging equipment; biomedical engineering; audiovisual services; com-
puter services; and such other internal service activities as are authorized by the state board
of regents under K.S.A. 76-755 and amendments thereto.

College work-study fund

No limit

Student union fees fund

No limit

Scholarship funds fund

No limit

Advances fund--department of social and rehabilitation services

No limit

Health professions student loan fund--medical students

No limit

Health professions student loan fund--nursing students

No limit

Revolving student loans fund

No limit

Student loans fund

No limit

Suspense fund

No limit

Prepaid tuition fees clearing fund

No limit

Educational opportunity grant fund

No limit

Basic educational opportunity grant fund

No limit

National direct student loan fund

No limit

Medical scholarship and loan repayment fund

$1,893,725

Provided, That expenditures from this fund for attorney fees and litigation costs associated
with the administration of the medical scholarship and loan program shall be in addition to
any expenditure limitation imposed on the operating expenditures account of the medical
scholarship and loan repayment fund or on the total expenditures from the medical schol-
arship and loan repayment fund.

Equipment reserve fund

No limit

Provided, That expenditures from the equipment reserve fund shall be made only for the
purchase of equipment.

University of Kansas medical center private practice foundation reservefund

No limit

University of Kansas hospital professional liability self-insurance fund

No limit

Hospital refunding principal and interest sinking fund

No limit

(c) On July 1, 1998, or as soon thereafter as moneys are available, the director of ac-
counts and reports shall transfer amounts specified by the chancellor of the university of
Kansas of not to exceed a total of $125,000 for all such amounts, from the general fees fund
to the following funds: National direct student loan fund; federal basic educational op-
portunity grant fund; federal college work-study fund; health professions student loan
fund--medical students; health professions student loan fund--nursing students.

(d) On July 1, 1998, or as soon thereafter as moneys are available, the director of ac-
counts and reports shall transfer an amount specified by the chancellor of the university of
Kansas of not to exceed $9,404,401 from the hospital revenue fund to the hospital overhead
reimbursements fund.

(e) During the fiscal year ending June 30, 1999, the director of accounts and reports
shall transfer an amount specified by the chancellor prior to July 1, 1999, from the general
fees fund to the equipment reserve fund.

(f) During the fiscal year ending June 30, 1999, medical students enrolled at the uni-
versity of Kansas medical center are hereby self-insured by the state of Kansas while in
clinical training at the university of Kansas medical center or at other health care institutions.
Such individuals shall be considered employees for purposes of the Kansas tort claims act
and shall be provided defense and indemnification for claims arising out of their clinical
training at the university of Kansas medical center or at other health care institutions in
accordance with the provisions of the Kansas tort claims act.

(g) During the fiscal year ending June 30, 1999, the director of accounts and reports
shall transfer amounts specified by the chancellor of the university of Kansas from the
hospital revenue fund to the university of Kansas hospital professional liability self-insurance
fund and to the university of Kansas hospital depreciation reserve fund.

Sec. 138.

WICHITA STATE UNIVERSITY (a) There is appropriated for the above agency from the state general fund, the follow-
ing:

Operating expenditures (including official hospitality)

$59,726,216

Provided, That any unencumbered balance in the operating expenditures (including official
hospitality) account in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal
year 1999.

(b) There is appropriated for the above agency from the following special revenue fund
or funds all moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:

General fees fund

$25,982,576

Restricted fees fund

No limit

Provided, That restricted fees shall be limited to receipts for the following accounts: Summer
school workshops; technology equipment; concert course; dramatics; continuing education;
flight training; gifts and grants (for teaching, research, and capital improvements); testing
service; state department of education (vocational); investment income from bequests; sale
of surplus books and art objects; public service; veterans counseling and educational benefits;
sponsored research; campus privilege fee; student activities; national defense education pro-
grams; engineering equipment fee; midwestern student exchange; departmental re-
ceipts--for all sales, refunds and other collections or receipts not specifically enumerated
above: Provided further, That the state board of regents, with the approval of the state
finance council acting on this matter which is hereby characterized as a matter of legislative
delegation and subject to the guidelines prescribed in subsection (c) of K.S.A. 75-3711c and
amendments thereto, may amend or change this list of restricted fees: And provided further,
That all restricted fees shall be deposited to the credit of the appropriate account of the
restricted fees fund and shall be used solely for the specific purpose or purposes for which
collected: And provided further, That expenditures may be made from this fund to purchase
insurance for equipment purchased through research and training grants only if such grants
include money for and authorize the purchase of such insurance: And provided further,
That expenditures from this fund may be made for the purchase of medical malpractice
liability coverage for individuals employed on the medical staff at the student health center:
And provided further, That all amounts of tuition received from students participating in
the midwestern student exchange program shall be deposited to the credit of the midwestern
student exchange account of the restricted fees fund.

Service clearing fund

No limit

Provided, That the service clearing fund shall be used for the following service activities:
Central service duplicating and reproducing bureau; automobiles; furniture stores; postal
clearing; telecommunication; computer service; and such other internal service activities as
are authorized by the state board of regents under K.S.A. 76-755 and amendments thereto.

On-campus parking revenue fund

No limit

Kansas career work study program fund

No limit

National direct student loan fund

No limit

Scholarship funds fund

No limit

Sponsored research overhead fund

No limit

Economic opportunity act--federal fund

No limit

Education opportunity grant--federal fund

No limit

Work-study program fund

No limit

Health professions student assistance program--loans fund

No limit

Nine month payroll clearing account fund

No limit

Equipment reserve fund

No limit

Provided, That expenditures from the equipment reserve fund shall be made only for the
purchase of equipment.

Research projects grants fund

No limit

Research projects grants matching fund

No limit

Pell grants fund

No limit

Housing system suspense fund

No limit

Housing system renovation principal and interest fund

No limit

Housing system repairs, equipment and improvement fund

No limit

WSU housing system depreciation and replacement fund

No limit

Perkins loan fund

No limit

Kansas distinguished scholarship fund

No limit

Kansas comprehensive grant fund

No limit

1971 academic and service building maintenance fund

No limit

WSU housing systems revenue fund

No limit

1976 dormitory maintenance reserve fund

No limit

Tuition accountability fund

No limit

(c) During the fiscal year ending June 30, 1999, the director of accounts and reports
shall transfer an amount specified by the president prior to July 1, 1999, from the general
fees fund to the equipment reserve fund.

(d) On July 1, 1998, or as soon thereafter as moneys are available, the director of ac-
counts and reports shall transfer an amount specified by the president of not to exceed
$120,000 from the general fees fund to the education opportunity grant--federal fund.

(e) Upon a finding by the director of the budget that the above agency realized an
increase in receipts to the general fees fund in the summer 1998 session, fall 1998 semester,
or spring 1999 semester above comparable periods in the preceding year, which increase in
receipts resulted from increases in enrollment, changes in resident and nonresident student
mix, or the imposition of a more restrictive tuition waiver policy, or any combination thereof,
the director of the budget shall certify such amount of increased receipts to the director of
accounts and reports. Upon receipt of such certification, the director of accounts and reports
shall transfer the amount certified from the general fees fund to the tuition accountability
fund.

(f) On July 1, 1998, or as soon thereafter as moneys are available, the director of ac-
counts and reports shall transfer $184,902 from the WSU housing systems revenue fund of
Wichita state university to the state general fund.

Sec. 139.

STATE BOARD OF REGENTS (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures (including official hospitality)

$1,798,612

Provided, That any unencumbered balance in the operating expenditures (including official
hospitality) account in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal
year 1999: Provided further, That the state board of regents is hereby authorized to transfer
moneys from this account to an account or accounts of the restricted fees fund of any
institution under its jurisdiction for the support of regents distinguished professors, Kansas
regents honors academy or the Kansas council on economic education.

State scholarship program

$1,001,457

Provided, That expenditures may be made from the state scholarship program account for
the state scholarship program under K.S.A. 72-6816 and amendments thereto and for the
Kansas distinguished scholarship program under K.S.A. 74-3278 through 74-3283 and
amendments thereto: Provided further, That of the total amount appropriated in the state
scholarship program account the amount of $25,000 is dedicated for the Kansas distin-
guished scholarship program.

Comprehensive Grant program

$9,620,000

Ethnic minority scholarship program

$310,000

Provided, That any unencumbered balance in the ethnic minority scholarship program ac-
count in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999.

Ethnic minority fellowship program

$156,000

Provided, That any unencumbered balance in the ethnic minority fellowship program ac-
count in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999.

Kansas work-study program

$517,227

Provided, That the state board of regents is hereby authorized to transfer moneys from the
Kansas work-study program account to the Kansas career work study program fund of any
institution under its jurisdiction participating in the Kansas work-study program established
by K.S.A. 74-3274 et seq., and amendments thereto: Provided further, That all moneys
transferred from this account to the Kansas career work study program fund of any such
institution shall be expended for and in accordance with the Kansas work-study program.

ROTC scholarship reimbursement

$184,421

Provided, That all expenditures from the ROTC scholarship reimbursement account for
reimbursements under K.S.A. 74-3256 and amendments thereto to any state educational
institution under the jurisdiction of the state board of regents shall be made as transfers to
the general fees fund of such state educational institution as a transaction between state
agencies in accordance with subsection (b) of K.S.A. 75-5516 and amendments thereto.

Teachers scholarship program

$298,215

Vocational scholarships

$100,000

Nursing student scholarship program

$240,567

Provided, That any unencumbered balance in the nursing student scholarship program ac-
count in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999.

Municipal university operating grant

$7,902,169

Expenses for recruiting, interviewing and selecting chief executive officersof institutions and state board of regents (including official hospitalityand directly related operating expenditures)

$25,000

Provided, That expenditures may be made from the expenses for recruiting, interviewing
and selecting chief executive officers of institutions and state board of regents (including
official hospitality and directly related operating expenditures) account to reimburse the
actual expenditures of applicants, members of the state board of regents and designated
personnel and applicants' spouses when accompanying applicants on official business.

(b) There is appropriated for the above agency from the following special revenue fund
or funds all moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:

Osteopathic scholarship repayment fund

$540,000

Vocational education scholarship examination fees fund

No limit

Vocational education scholarship discontinued attendance fund

No limit

Student incentive grant fund--federal

No limit

Regents' scholarship gift fund

No limit

Provided, That expenditures may be made from the regents' scholarship gift fund for schol-
arships awarded to Kansas residents who are attending institutions of postsecondary edu-
cation in Kansas which are authorized under the laws of this state to award academic degrees
and who meet academic and other eligibility criteria established by the state board of regents
by rules and regulations: Provided, however, That a financial needs test shall not be one of
the eligibility criteria established by the state board of regents for such scholarships: Pro-
vided further, That no scholarship awarded from this fund shall exceed $2,000 per academic
year: And provided further, That any recipient of a scholarship awarded from this fund may
also receive either a state scholarship under K.S.A. 72-6810 to 72-6816, inclusive, and
amendments thereto or a tuition grant under K.S.A. 72-6107 to 72-6111, inclusive, and
amendments thereto, or both: And provided further, That there shall be no reduction of
any scholarship awarded from this fund for the amount of any such state scholarship or
tuition grant received.

Earned indirect costs fund--federal

No limit

Paul Douglas teacher scholarship fund--federal

No limit

Education for economic security grant--federal fund

No limit

Comprehensive grant program discontinued attendance fund

No limit

State scholarship discontinued attendance fund

No limit

Kansas ethnic minority fellowship program fund

No limit

Private postsecondary educational institution degree authorization
expense reimbursement fee fund

No limit

Voluntary tax sheltered annuity clearing fund

No limit

Substance abuse education fund--federal

No limit

Mandatory retirement annuity clearing fund

No limit

Nursing student scholarship program fund

No limit

Kansas ethnic minority discontinued attendance fund

No limit

Clearing fund

No limit

Conversion of materials and equipment fund

No limit

Teacher scholarship program fund

No limit

Financial aid services fee fund

No limit

Provided, That expenditures may be made from the financial aid services fee fund for op-
erating expenditures directly or indirectly related to the operating costs associated with
administering the Kansas osteopathy scholarship program, Kansas optometric scholarship
program, Kansas nursing scholarship program and Kansas teacher scholarship program:
Provided further, That the executive officer of the state board of regents is hereby authorized
to fix, charge and collect fees for the processing of all new and renewal applications under
the Kansas osteopathy scholarship program, Kansas optometric scholarship program, Kansas
nursing scholarship program and Kansas teacher scholarship program: And provided further,
That such fees shall be fixed in order to recover all or a part of the direct and indirect
operating expenses incurred for administering such scholarship programs: And provided
further, That all moneys received for such fees shall be deposited in the state treasury and
credited to this fund.

Optometry education repayment fund

No limit

Teacher scholarship repayment fund

No limit

Advanced registered nurse practitioner program fund

No limit

Nursing student scholarship discontinued attendance fund

No limit

Nursing student scholarship repayment fund

No limit

Kansas state geography education endowment program fund

No limit

Provided, That all moneys received from the national geographic society foundation to create
a Kansas state geography education endowment program shall be deposited in the state
treasury and credited to the Kansas state geography education endowment fund.

EDIF--national geographic society education foundation endowmentfund

$250,000

Provided, That all expenditures from the EDIF--national geographic society education
foundation endowment fund shall be matched on a $1 for $1 basis by expenditures from
the Kansas state geography education endowment program fund so that expenditures for
the Kansas state geography education endowment program are equally supported by funds
received from the national geographic society foundation and from the Kansas economic
development endowment account of the state economic development initiatives fund: Pro-
vided further, That the state board of regents shall implement and administer the Kansas
state geography education endowment program.

(c) In addition to the other purposes for which expenditures may be made from the
state budget stabilization fund for fiscal year 1999, expenditures and transfers may be made
by the above agency from the state budget stabilization fund for fiscal year 1999 for the
following specified purposes subject to the expenditure limitations prescribed therefor:

SBSF--technology equipment at regents institutions

$5,000,000

Provided, That the state board of regents is hereby authorized to transfer moneys from the
SBSF--technology equipment at regents institutions account to an account or accounts of
the restricted fees fund of any institution under its jurisdiction for the purchase of technology
equipment for instructional purposes, in accordance with guidelines established by the state
board of regents: Provided further, That all such transfers by the state board of regents from
the state budget stabilization fund for fiscal year 1999 from the SBSF--technology equip-
ment at regents institutions account shall be in addition to any expenditure limitation im-
posed on the state budget stabilization fund for fiscal year 1999.

(d) On July 1, 1998, the director of accounts and reports shall transfer all moneys in
the tuition grant discontinued attendance fund of the board of regents to the comprehensive
grant program discontinued attendance fund of the state Board of Regents. On July 1, 1998,
all liabilities of the tuition grant discontinued attendance fund are hereby transferred to and
imposed on the comprehensive grant program discontinued attendance fund and the tuition
grant discontinued attendance fund is hereby abolished.

(e) On July 15, 1998, or as soon thereafter as moneys are available, the director of
accounts and reports shall transfer $250,000 from the Kansas economic development en-
dowment account of the state economic development initiatives fund of the department of
commerce and housing to the EDIF--national geographic society education foundation
endowment fund.

(f) Position limitations. The number of full-time and regular part-time positions equated
to full-time, excluding seasonal and temporary positions, paid from appropriations for fiscal
year 1999 made in this or other appropriation act of the 1998 regular session of the legis-
lature for the following agency or agencies shall not exceed the following, except upon
approval of the state finance council:

State Board of Regents

18.0

Sec. 140.

DEPARTMENT OF CORRECTIONS (a) There is appropriated for the above agency from the state general fund the following:

Central administration operations and parole and postrelease supervisionoperations

$12,472,648

Provided, That any unencumbered balance in the central administration operations and
parole and postrelease supervision operations account in excess of $100 as of June 30, 1998,
is hereby reappropriated for fiscal year 1999: Provided, however, That expenditures from
such reappropriated balance shall not exceed $84,387 except upon approval of the state
finance council.

Community corrections

$14,955,501

Provided, That any unencumbered balance in the community corrections account in excess
of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999: Provided, however,
That expenditures from such reappropriated balance shall not exceed $58,530 except upon
approval of the state finance council: Provided further, That no expenditures may be made
by any county from any grant made to such county from the community corrections account
for either half of state fiscal year 1999 which supplant any amount of local public or private
funding of existing programs as determined in accordance with rules and regulations adopted
by the secretary of corrections.

Community correctional conservation camps

$2,261,100

Treatment and programs

$29,295,298

Provided, That any unencumbered balance in the treatment and programs account in excess
of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999: Provided, however,
That expenditures from such reappropriated balance shall not exceed $61,199 except upon
approval of the state finance council: Provided further, That expenditures from the treat-
ment and programs account for malpractice insurance shall not be greater than the amount
obtained by multiplying $5,000 by the approved number of positions equated to full-time
for individuals employed as physician specialists, physician assistants and dentists.

Postconviction nonprison sanctions for felony offenders

$105,675

Provided, That any unencumbered balance in the postconviction nonprison sanctions for
felony offenders account in excess of $100 as of June 30, 1998, is hereby reappropriated for
fiscal year 1999: Provided, however, That expenditures from such reappropriated balance
shall not exceed $94,325 except upon approval of the state finance council: Provided further,
That expenditures may be made from the postconviction nonprison sanctions for felony
offenders account for only those postconviction nonprison sanction costs authorized by the
secretary of corrections to be paid from this account: And provided further, That the rate
of reimbursement for the expenses of such sanctions shall be determined and fixed by the
secretary of corrections.

Facilities operations

$125,103,623

Justice assistance--federal fund

No limit

Department of corrections state asset forfeiture fund

No limit

Carl Perkins act--federal fund

No limit

Criminal Justice Information System--federal fund

No limit

Violent offender incarceration and truth in sentencing incentivegrants--federal fund

No limit

Chapter I--federal fund

No limit

Correctional industries fund

No limit

State of Kansas--department of corrections inmate benefit fund

No limit

Provided, That in addition to any other expenditure authorized from the state of Kansas--
department of corrections inmate benefit fund, the sum of $15,000 shall be expended to
fund a portion of the operations of the office of the ombudsman of corrections.

Department of corrections--general fees fund

No limit

Provided, That expenditures may be made from the department of corrections--general
fees fund for operating expenditures for training programs for correctional personnel, in-
cluding official hospitality: Provided further, That the secretary of corrections is hereby
authorized to fix, charge and collect fees for such programs: And provided further, That
such fees shall be fixed in order to recover all or part of the operating expenses incurred
for such training programs, including official hospitality: And provided further, That all fees
received for such programs shall be credited to this fund.

Topeka correctional facility--community development block grant--fed-eral fund

No limit

Topeka correctional facility--general fees fund

No limit

Topeka correctional facility--inmate canteen fund

No limit

Topeka correctional facility--inmate benefit fund

No limit

Topeka correctional facility--institutional library services grant fund--federal

No limit

Hutchinson correctional facility--general fees fund

No limit

Hutchinson correctional facility--inmate canteen fund

No limit

Hutchinson correctional facility--inmate benefit fund

No limit

Hutchinson correctional facility--institutional library services grantfund--federal

No limit

Lansing correctional facility--general fees fund

No limit

Lansing correctional facility--inmate canteen fund

No limit

Lansing correctional facility--inmate benefit fund

No limit

Lansing correctional facility--institutional library services grant fund--federal

No limit

Ellsworth correctional facility--general fees fund

No limit

Ellsworth correctional facility--inmate canteen fund

No limit

Ellsworth correctional facility--inmate benefit fund

No limit

Ellsworth correctional facility--institutional library services grantfund--federal

No limit

Winfield correctional facility--general fees fund

No limit

Winfield correctional facility--inmate canteen fund

No limit

Winfield correctional facility--inmate benefit fund

No limit

Winfield correctional facility--institutional library services grant fund--federal

No limit

Norton correctional facility--general fees fund

No limit

Norton correctional facility--inmate canteen fund

No limit

Norton correctional facility--inmate benefit fund

No limit

Norton correctional facility--institutional library services grant fund--federal

No limit

El Dorado correctional facility--general fees fund

No limit

El Dorado correctional facility--inmate canteen fund

No limit

El Dorado correctional facility--inmate benefit fund

No limit

El Dorado correctional facility--institutional library services grantfund--federal

No limit

Larned correctional mental health facility--general fees fund

No limit

Larned correctional mental health facility--inmate canteen fund

No limit

Larned correctional mental health facility--inmate benefit fund

No limit

Larned correctional mental health facility--institutional library servicesgrant fund--federal

No limit

Larned correctional mental health facility--justice assistance--federalfund

No limit

(c) The following amounts are included in the facilities operations account of the state
general fund for the following correctional facilities and programs, but expenditures from
this account for any such correctional facility or program shall not be limited to, nor be
required to be made in, the amount listed for the correctional facility or program:

Topeka correctional facility

$12,884,190

Hutchinson correctional facility

$21,680,863

Lansing correctional facility

$29,925,808

Ellsworth correctional facility

$8,093,849

Winfield correctional facility

$8,686,228

Norton correctional facility

$10,350,506

El Dorado correctional facility

$15,918,442

Larned correctional mental health facility

$6,695,137

Food service

$11,102,072

(d) During the fiscal year ending June 30, 1999, the secretary of corrections, with the
governor's approval, may transfer any part of any item of appropriation for the fiscal year
ending June 30, 1999, from the state general fund for the department of corrections or any
correctional institution or facility under the general supervision and management of the
secretary of corrections to another item of appropriation for fiscal year 1999 from the state
general fund for the department of corrections or any correctional institution or facility
under the general supervision and management of the secretary of corrections. The secretary
of corrections shall certify each such transfer to the director of accounts and reports and
shall transmit a copy of each such certification to the legislative research department.

(e) Position limitations. The number of full-time and regular part-time positions equated
to full-time, excluding seasonal and temporary positions, paid from appropriations made in
this or other appropriation act of the 1998 regular session of the legislature for the following
agency or agencies shall not exceed the following, except upon approval of the state finance
council:

Department of Corrections

3,033.5

Sec. 141.

ADJUTANT GENERAL (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures

$4,009,985

Civil air patrol--operating expenditures

$25,827

Conversion of materials and equipment fund--military division

No limit

Training and support of title III--federal fund

No limit

Emergency preparedness--federal fund matching--equipment fund

No limit

Emergency preparedness--federal fund matching--administrationfund

No limit

Emergency preparedness--RADEF instrument maintenance fund

No limit

State disaster coordination--federal fund

No limit

Emergency preparedness--nuclear civil protection--federal fund

No limit

Payment of death, disability, and medical benefit claims fund

No limit

Expenses under national guard mutual assistance compact fund

No limit

Military fees fund

No limit

Provided, That all moneys received by the adjutant general from the federal government
for reimbursement for expenditures made under agreements with the federal government
shall be deposited in the state treasury and credited to the military fees fund.

Emergency preparedness--fee fund

No limit

Armories and units general fees fund

No limit

Emergency preparedness--disaster fund--federal fund

No limit

Civil air patrol--grants and contributions fund

No limit

Sec. 142.

STATE FIRE MARSHAL (a) There is appropriated for the above agency from the following special revenue fund
or funds all moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures, other than refunds authorized by law, purchases of nation-
ally recognized adopted codes for resale and federally reimbursed overtime, shall not exceed
the following:

Fire marshal fee fund

$2,419,418

Provided, That expenditures from the fire marshal fee fund for official hospitality shall not
exceed $200.

Other federal grants fund

No limit

Provided, That the above agency is authorized to make expenditures from the other federal
grants fund of any moneys credited to this fund from any individual grant if the grant is: (1)
Less than $250,000 in the aggregate, and (2) does not require the matching expenditure of
any other moneys in the state treasury during the current or any ensuing fiscal year: Pro-
vided, however, That no grant that is greater than $250,000 in the aggregate or that requires
the matching expenditure of any other moneys in the state treasury during the current or
any ensuing fiscal year, shall be deposited to the credit of this fund.

Gifts, grants and donations fund

$45,000

(b) During the fiscal year ending June 30, 1999, the director of the budget, after con-
sultation with the state fire marshal, may periodically certify to the director of accounts and
reports amounts of money for transfer from the fire marshal fee fund to the state general
fund in order to transfer moneys which are not currently needed to pay for the operations
of the office of the state fire marshal. Upon receipt of each such certification during the
fiscal year ending June 30, 1999, the director of accounts and reports shall transfer the
amount certified by the director of the budget from the fire marshal fee fund to the state
general fund. All amounts transferred from the fire marshal fee fund to the state general
fund under this subsection are to reimburse the state general fund for accounting, auditing,
budgeting, legal, payroll, personnel and purchasing services and any other governmental
services which are performed on behalf of the state fire marshal by other state agencies
which receive appropriations from the state general fund to provide such services. Such
reimbursements are in addition to those authorized by K.S.A. 75-3170a and amendments
thereto.

Sec. 143.

KANSAS PAROLE BOARD (a) There is appropriated for the above agency from the state general fund the following:

Parole from adult correctional institutions

$488,795

Provided, That any unencumbered balance in the parole from adult correctional institutions
account in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999:
Provided, however, That expenditures from such reappropriated balance shall not exceed
$3,682 except upon approval of the state finance council.

Sec. 144.

KANSAS HIGHWAY PATROL (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures

$23,555,202

Provided, That any unencumbered balance in the operating expenditures account in excess
of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999: Provided, however,
That expenditures from such reappropriated balance shall not exceed $13,308 except upon
approval of the state finance council: Provided further, That expenditures may be made
from this account for the purchase of civilian clothing for members of the Kansas highway
patrol assigned to duties pursuant to K.S.A. 74-2105 and amendments thereto: And provided
further, That expenditures may be made from this account for state aircraft insurance: And
provided further, That expenditures from this account for official hospitality shall not exceed
$500: And provided further, That expenditures shall be made from this account for operating
expenditures of the Kansas highway patrol to provide leadership, coordination and technical
assistance to other state public safety agencies in implementing the conversion to 800 meg-
ahertz radio systems for those agencies.

Capitol area security

$630,353

Provided, That any unencumbered balance in the capitol area security account in excess of
$100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999: Provided, however,
That expenditures from such reappropriated balance shall be made only upon approval of
the state finance council.

(b) There is appropriated for the above agency from the following special revenue fund
or funds 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:

General fees fund

No limit

Provided, That all moneys received from the sale of used equipment, recovery of and re-
imbursements for expenditures and any other source of revenue shall be credited to the
general fees fund, except as otherwise provided by law: Provided further, That the above
agency shall deposit the proceeds from the sale of personal sidearms to retiring troopers
and other retiring sworn officers of the Kansas highway patrol, which sales upon retirement
are hereby authorized, to the credit of this fund: Provided, however That each such sale of
a retiring sworn officer's personal sidearm upon retirement shall be for an amount of not
less than the replacement cost of the sidearm.

For patrol of Kansas turnpike fund

No limit

Highway patrol motor vehicle fund

No limit

Highway patrol--federal fund

No limit

Kansas highway patrol state forfeiture fund

No limit

Gifts and donations fund

No limit

Federal forfeiture fund

No limit

Motor carrier safety assistance program fund

No limit

Highway patrol training center clearing fund

No limit

Provided, That expenditures may be made from the highway patrol training center clearing
fund for use of the highway patrol training center by other state or local government agen-
cies: Provided further, That the superintendent of the Kansas highway patrol is hereby
authorized to fix, charge and collect fees for recovery of costs associated with use of the
highway patrol training center by other state or local government agencies: And provided
further, That such fees shall be fixed in order to recover all or part of the expenses incurred
in providing for the use of the highway patrol training center by other state or local govern-
ment agencies: And provided further, That all fees received for use of the highway patrol
training center by other state or local government agencies shall be credited to this fund.

Highway safety fund

No limit

Capitol area security fund

No limit

Provided, That the Kansas highway patrol and any state agency which is responsible for the
operation of buildings in the capitol area are hereby authorized to negotiate contracts for
building security services: Provided further, That any such contract shall provide for reim-
bursement of the Kansas highway patrol for services rendered pursuant to such contract
and such reimbursement shall be credited to the capitol area security fund.

Vehicle identification number fee fund

$1,614,517

Interagency motor vehicle fuel sales fund

No limit

Provided, That expenditures may be made from the interagency motor vehicle fuel sales
fund to provide and sell motor vehicle fuel to other state agencies: Provided further, That
the superintendent of the Kansas highway patrol is hereby authorized to fix, charge and
collect fees for motor vehicle fuel sold to other state agencies: And provided further, That
such fees shall be fixed in order to recover all or part of the expenses incurred in providing
motor vehicle fuel to other state agencies: And provided further, That all fees received for
such sales of motor vehicle fuel shall be credited to this fund.

Motor carrier inspection fund

$7,064,909

Highway patrol training center fund

$900,000

(c) On July 1, 1998, the director of accounts and reports shall transfer $139,500 from
the motor carrier license fees fund of the state corporation commission to the motor carrier
safety assistance program fund of the Kansas highway patrol.

(d) On January 1, 1998, the director of accounts and reports shall transfer $139,499
from the motor carrier license fees fund of the state corporation commission to the motor
carrier safety assistance program fund of the Kansas highway patrol.

(e) On July 1, 1998, October 1, 1998, January 1, 1999, and April 1, 1999, the director
of accounts and reports shall transfer $1,749,659 from the state highway fund of the de-
partment of transportation to the motor carrier inspection fund of the Kansas highway patrol
for the purpose of financing the motor carrier inspection program of the Kansas highway
patrol.

(f) On July 1, 1998, the director of accounts and reports shall transfer $150,000 from
the state highway fund of the department of transportation to the highway safety fund of
the Kansas highway patrol for the purpose of financing the motorist assistance program of
the Kansas highway patrol.

(g) On July 1, 1998, the director of accounts and reports shall transfer $170,000 from
the state highway fund of the department of transportation to the general fees fund of the
Kansas highway patrol for the purpose of financing operating expenditures of the Kansas
highway patrol.

Sec. 145.

ATTORNEY GENERAL--KANSAS BUREAU OF INVESTIGATION (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures

$11,348,650

Debt service payment--purchase of headquarters building at 1620 S.W.Tyler Street in Topeka

$142,489

Kansas bureau of investigation state forfeiture fund

No limit

Kansas bureau of investigation federal forfeiture fund

No limit

Kansas bureau of investigation federal grants fund

No limit

Forensic laboratory and materials fee fund

No limit

Provided, That expenditures may be made from this fund for the acquisition of laboratory
equipment and materials and for other direct or indirect operating expenditures for the
forensic laboratory of the Kansas bureau of investigation incurred for laboratory tests con-
ducted for noncriminal justice entities, including governmental agencies and private organ-
izations, which testing activity is hereby authorized: Provided, however, That all expenditures
from this fund of moneys received as Kansas bureau of investigation laboratory analysis fees
pursuant to subsection (a) of K.S.A. 28-176 and amendments thereto shall be for the pur-
poses authorized by subsection (c) of K.S.A. 28-176 and amendments thereto: Provided
further, That the director of the Kansas bureau of investigation is hereby authorized to fix,
charge and collect fees for laboratory tests conducted for such noncriminal justice entities:
And provided further, That such fees shall be fixed in order to recover all or part of the
direct and indirect operating expenses incurred for conducting laboratory tests for such
noncriminal justice entities: And provided further, That all fees received for such laboratory
tests, including all moneys received pursuant to subsection (a) of K.S.A. 28-176 and amend-
ments thereto shall be deposited in the state treasury and credited to this fund.

KBI general fees fund

No limit

Provided, That expenditures may be made from the KBI general fees fund for direct or
indirect operating expenditures incurred for the following activities: (1) Conducting edu-
cation and training classes for special agents and other personnel, including official hospi-
tality; (2) purchasing illegal drugs, making contacts and acquiring information leading to
illegal drug outlets, contraband and stolen property, and conducting other activities for
similar investigatory purposes; (3) conducting investigations and related activities for the
Kansas lottery or the Kansas racing and gaming commission; (4) conducting DNA forensic
laboratory tests and related activities; (5) preparing, publishing and distributing crime pre-
vention materials: Provided, however, That the director of the Kansas bureau of investigation
is hereby authorized to fix, charge and collect fees in order to recover all or part of the
direct and indirect operating expenses incurred, except as otherwise hereinafter provided,
for the following: (1) Education and training services made available to local law enforce-
ment personnel in classes conducted for special agents and other personnel of the Kansas
bureau of investigation; (2) investigations and related activities conducted for the Kansas
lottery or the Kansas racing and gaming commission, except that the fees fixed for these
activities shall be fixed in order to recover all of the direct and indirect expenses incurred
for such investigations and related activities; (3) DNA forensic laboratory tests and related
activities; (4) sale and distribution of crime prevention materials: Provided further, That all
fees received for such activities shall be deposited in the state treasury and credited to this
fund: And provided further, That all moneys which are expended for any such evidence
purchase, information acquisition or similar investigatory purpose or activity from whatever
funding source and which are recovered shall be deposited in the state treasury and credited
to this fund: And provided further, That all moneys received as gifts, grants or donations
for the preparation, publication or distribution of crime prevention materials shall be de-
posited in the state treasury to the credit of this fund.

Record check fee fund

No limit

Provided, That the director of the Kansas bureau of investigation is authorized to fix, charge
and collect fees in order to recover all or part of the direct and indirect operating expenses
for criminal history record checks conducted for noncriminal justice entities including gov-
ernment agencies and private organizations: Provided, however, That all moneys received
for such fees shall be deposited in the state treasury and credited to the record check fee
fund: Provided further, expenditures from the record check fee fund may be made only for
the expenses of conducting criminal history record checks.

Sec. 146.

JUVENILE JUSTICE AUTHORITY (a) There is appropriated for the above agency from the state general fund for the fiscal
year or years specified, the following:

Operating expenditures

$23,878,619

Provided, That expenditures from the operating expenditures account for official hospitality
shall not exceed $1,000.

Management information systems

$125,000

Community initiatives

$2,500,000

Provided, That expenditures shall be made from the community initiatives account for com-
munity-based initiatives designed to relieve the demands upon juvenile correctional facilities
and to provide a community-centered, prevention-focused juvenile justice system which
includes diversion, a continuum of community sanctions and post-release, aftercare services:
Provided further, That all expenditures made from this account shall be based upon the
proportionate needs of the 31 judicial districts in juvenile justice matters.

Facilities operations

$24,546,608

Provided, That any unencumbered balance in the facilities operations account in excess of
$100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999: Provided, however,
That expenditures from such reappropriated balance shall not exceed $19,710 except upon
approval of the state finance council: Provided further, That expenditures may be made
from this account for educational services contracts which are hereby authorized to be
negotiated and entered into by the above agency with unified school districts or other public
educational services providers: And provided further, That such educational services con-
tracts shall not be subject to the competitive bid requirements of K.S.A. 75-3739 and amend-
ments thereto.

(b) There is appropriated for the above agency from the following special revenue fund
or funds all moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures other than refunds authorized by law shall not exceed the
following:

Title XIX fund

No limit

Title IV-E fund

No limit

Juvenile justice delinquency prevention--federal fund

No limit

Juvenile detention facilities fund

$2,697,648

Juvenile justice fee fund

No limit

Kansas endowment for youth trust fund

No limit

Juvenile justice federal fund

No limit

Juvenile justice community initiative fund

No limit

Juvenile justice community planning fund

No limit

Byrne grant--federal fund

No limit

Capital facilities planning and projects--federal fund

No limit

Topeka juvenile correctional facility fee fund

No limit

Topeka juvenile correctional facility improvement fund

No limit

Topeka juvenile correctional facility--elementary and secondary educa-tion fund--federal

No limit

Topeka juvenile correctional facility--canteen fund

No limit

Topeka juvenile correctional facility--patient benefit fund

No limit

Atchison juvenile correctional facility fee fund

No limit

Atchison juvenile correctional facility--elementary and secondary edu-cation fund--federal

No limit

Atchison juvenile correctional facility--canteen fund

No limit

Atchison juvenile correctional facility--patient benefit fund

No limit

Beloit juvenile correctional facility fee fund

No limit

Beloit juvenile correctional facility--elementary and secondary educationfund--federal

No limit

Beloit juvenile correctional facility--canteen fund

No limit

Beloit juvenile correctional facility--patient benefit fund

No limit

Larned juvenile correctional facility fee fund

No limit

(c) On July 1, 1998, or as soon thereafter as moneys are available, the director of ac-
counts and reports shall transfer $90,000 from the alcohol and drug abuse block grant federal
fund of the department of social and rehabilitation services to the juvenile justice federal
fund of the juvenile justice authority.

(d) On July 1, 1998, or as soon thereafter as moneys are available, the director of ac-
counts and reports shall transfer $42,310 from the alcohol and drug abuse block grant federal
fund of the department of social and rehabilitation services to the Beloit juvenile correctional
facility fee fund of the juvenile justice authority.

(e) During the fiscal year ending June 30, 1999, the superintendent of the Topeka
juvenile correctional facility, upon the approval of the director of accounts and reports, shall
transfer $4,000 from the Topeka juvenile correctional facility--canteen fund to the Topeka
juvenile correctional facility--patient benefit fund.

(f) During the fiscal year ending June 30, 1999, the superintendent of the Atchison
juvenile correctional facility, upon the approval of the director of accounts and reports, shall
transfer $500 from the Atchison juvenile correctional facility--canteen fund to the Atchison
juvenile correctional facility--patient benefit fund.

(g) During the fiscal year ending June 30, 1999, the superintendent of the Beloit juvenile
correctional facility, upon the approval of the director of accounts and reports, shall transfer
$1,000 from the Beloit juvenile correctional facility--canteen fund to the Beloit juvenile
correctional facility--patient benefit fund.

(h) During the fiscal year ending June 30, 1999, the commissioner of juvenile justice,
with the governor's approval, may transfer any part of any item of appropriation for the
fiscal year ending June 30, 1999, from the state general fund for the juvenile justice authority
or any juvenile correctional facility or institution under the general supervision and man-
agement of the commissioner of juvenile justice to another item of appropriation for fiscal
year 1999 from the state general fund for the juvenile justice authority or any juvenile
correctional facility or institution under the general supervision and management of the
commissioner of juvenile justice. The commissioner of juvenile justice shall certify each
such transfer to the director of accounts and reports and shall transmit a copy of each such
certification to the legislative research department.

(i) The following amounts are included in the facilities operations account of the state
general fund for the fiscal year ending June 30, 1999, for the following juvenile correctional
facilities and institutions, but expenditures from the facilities operations account shall not
be limited to, nor be required to be made in, the amount listed for the juvenile correctional
facility:

Topeka juvenile correctional facility

$10,419,031

Beloit juvenile correctional facility

$4,686,903

Atchison juvenile correctional facility

$5,538,835

Larned juvenile correctional facility

$3,921,549

(j) On or after July 1, 1998, during fiscal year 1999, upon notification by the commis-
sioner of juvenile justice, the director of accounts and reports shall transfer all moneys
specified by the commissioner of juvenile justice for the residential substance abuse program
at the Larned juvenile correctional facility to the juvenile justice federal fund of the juvenile
justice authority.

Sec. 147.

EMERGENCY MEDICAL SERVICES BOARD (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures

$828,501

Regional council grants

$100,000

EMS--federal fund

No limit

Emergency medical services operating fund

$2,500

Provided, That the emergency medical services board is hereby authorized to fix, charge
and collect fees in order to recover costs incurred for distributing educational videos, re-
placing lost educational materials and mailing labels of those licensed by the board: Provided
further, That such fees may be fixed in order to recover all or part of such costs: And
provided further, That all moneys received from such fees shall be deposited in the state
treasury and credited to the emergency medical services operating fund.

Sec. 148.

KANSAS SENTENCING COMMISSION (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures

$314,404

State matching fund

$901,536

General fees fund

No limit

Juvenile justice--federal fund

No limit

Statistical analysis--federal fund

No limit

Drug abuse fund--federal

No limit

(c) In addition to the other purposes for which expenditures may be made from the
state budget stabilization fund for fiscal year 1999, expenditures may be made by the above
agency from the state budget stabilization fund for fiscal year 1999 for the following specified
purpose subject to the expenditure limitation prescribed therefor:

Criminal Justice Information System

$1,300,248

Provided, That all expenditures by the above agency from the state budget stabilization fund
for fiscal year 1999 for the criminal justice information system shall be in addition to any
expenditure limitation imposed on the state budget stabilization fund for fiscal year 1999.

Sec. 149.

OMBUDSMAN OF CORRECTIONS (a) There is appropriated for the above agency from the state general fund the following:

Adult corrections oversight

$174,562

Provided, That any unencumbered balance in the adult corrections oversight account in
excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999: Provided,
however, That expenditures from such reappropriated balance shall be made only upon
approval of the state finance council.

Sec. 150. Position limitations. The number of full-time and regular part-time positions
equated to full-time, excluding seasonal and temporary positions, paid from appropriations
for fiscal year 1999, made in this or other appropriation act of the 1998 regular session of
the legislature for the following agency or agencies shall not exceed the following, except
upon approval of the state finance council:

Adjutant General

226.0

State Fire Marshal

41.0

Kansas Parole Board

4.0

Kansas Highway Patrol

780.8

Attorney General--Kansas Bureau of Investigation

193.5

Juvenile Justice Authority

590.0

Emergency Medical Services Board

13.0

Kansas Sentencing Commission

9.0

Ombudsman of Corrections

4.0

Sec. 151.

KANSAS DEPARTMENT OF AGRICULTURE (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures (including official hospitality)

$9,935,428

Provided, That any unencumbered balance in the operating expenditures (including official
hospitality) account in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal
year 1999: Provided, however, That expenditures from such reappropriated balance shall
not exceed $103,713 except upon approval of the state finance council: Provided further,
That expenditures may be made from this account for expenses incurred in holding the
annual meeting: And provided further, That the above agency may negotiate and enter into
contracts to carry out its functions at the annual meeting: And provided further, That such
contracts shall not be subject to the competitive bid requirements of K.S.A. 75-3739 and
amendments thereto.

(b) There is appropriated for the above agency from the following special revenue fund
or funds 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:

Dairy division fee fund

$110,142

Meat and poultry inspection fee fund

$54,766

Wheat quality survey fund

$30,000

Entomology fee fund

$128,331

Laboratory equipment fund

No limit

Water structures--state highway fund

$90,358

Soil amendment fee fund

$2,515

Agricultural liming materials fee fund

$26,045

Weights and measures fee fund

$72,184

Water appropriation certification fund

$416,018

Water rights information system fees fund

No limit

Provided, That the secretary of agriculture is hereby authorized to fix, charge and collect
fees for water data provided at the request of non-state government agencies and the general
public: Provided further, That such fees shall be fixed in order to recover all of the direct
data processing expenses incurred in preparation of requested water data: And provided
further, That such fees shall be deposited in the state treasury and credited to the water
rights information system fees fund: And provided further, That expenditures may be made
from this fund to pay the costs incurred by the division of water resources for data processing
services to prepare requested water data.

Agriculture seed fee fund

$71,710

Chemigation fee fund

$105,621

Agriculture statistics fund

No limit

Petroleum inspection fee fund

$552,015

Water transfer hearing fund

No limit

Warehouse fee fund

$591,962

Grain inspection fee fund

Kansas corn commission fund

No limit

Provided, That expenditures from the Kansas corn commission fund for official hospitality
shall not exceed $3,000.

Kansas grain sorghum commission fund

No limit

Provided, That expenditures from the Kansas grain sorghum commission fund for official
hospitality shall not exceed $3,000.

Soybean promotion and research fee fund

No limit

Provided, That expenditures from the soybean promotion and research fee fund for official
hospitality shall not exceed $3,000.

U.S. geological survey cooperative gage agreement fund

No limit

Provided, That the secretary of agriculture is hereby authorized to enter into a cooperative
gage agreement with the United States geological survey: Provided further, That all moneys
collected for the construction or operation of river water intake gages shall be deposited in
the state treasury and credited to the U.S. geological survey cooperative gage agreement
fund: And provided further, That expenditures may be made from this fund to pay the costs
incurred in the construction or operation of river water intake gages.

Water plan special revenue fund

$1,018,000

Provided, That expenditures from the water plan special revenue fund for salaries and wages
shall not exceed $580,169.

Agricultural chemical fee fund

$249,246

Feeding stuffs fee fund

$512,813

Fertilizer fee fund

$349,422

Livestock remedies fee fund

$19,513

Pesticide use fee fund

$444,021

Grade A milk fee fund

$197,858

Geographic information system fee fund

No limit

Seed examination fee fund

$28,880

Egg fee fund

$88,163

Meat and poultry inspection fund (federal)

No limit

Certification of pesticide applicators program--federal fund

No limit

EPA pesticide performance partnership grant fund

No limit

Pest detection and survey--federal fund

No limit

USDA NASS postage fund

No limit

FDA tissue residue fund--federal

No limit

Aquaculture fund

Conversion of materials and equipment fund

No limit

Publications fee fund

No limit

Provided, That expenditures may be made from the publications fee fund for operating
expenditures related to preparation and publication of ``Insects in Kansas'': Provided further,
That, notwithstanding the provisions of K.S.A. 75-1005 and amendments thereto to the
contrary, the secretary of agriculture is hereby authorized to enter into a contract with a
commercial publisher for the printing, distribution and sale of the publication ``Insects in
Kansas'': And provided further, That the secretary of agriculture is hereby authorized to
collect fees from such commercial publisher pursuant to contract with the publisher for the
sale of the publication: And provided further, That the secretary of agriculture is hereby
authorized to receive and accept grants, gifts, donations or funds of any kind from the federal
government or any of its agencies or from any other source whatsoever for the printing,
publication and distribution of ``Insects of Kansas'': And provided further, That all moneys
received from such fees or for such grants, gifts, donations or other funds received for such
purpose, shall be deposited in the state treasury and credited to this fund.

Other grants fund

No limit

Provided, That, the above agency is authorized to make expenditures from the other grants
fund of any moneys credited to this fund from any individual grant if the grant is: (1) Less
than $200,001 in the aggregate, and (2) does not require the matching expenditure of any
moneys in the state treasury during fiscal year 1999 other than moneys appropriated by this
act: Provided, however, That no grant that: (1) Is greater than $200,000 in the aggregate,
(2) requires the matching expenditure of any moneys in the state treasury during fiscal year
1999 other than moneys appropriated by this act, or (3) is a grant for the farmers' assistance,
counseling and training program, shall be deposited to the credit of this fund.

(c) On July 1, 1998, the director of accounts and reports shall transfer $89,677 from the
state highway fund of the department of transportation to the water structures--state high-
way fund of the Kansas department of agriculture.

(d) On July 1, 1998, or as soon thereafter as moneys are available, the director of ac-
counts and reports shall transfer $1,018,000 from the state water plan fund of the Kansas
water office to the water plan special revenue fund of the Kansas department of agriculture.

Sec. 152.

KANSAS ANIMAL HEALTH DEPARTMENT (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures

$615,053

Animal disease control fund

No limit

Animal dealers fee fund

No limit

Veterinary inspection fee fund

No limit

Livestock market brand inspection fee fund

No limit

Livestock brand fee fund

No limit

Livestock brand emergency revolving fund

No limit

County option brand fee fund

No limit

Federal state disease control fund

No limit

Livestock indemnification fund

No limit

Pseudorabies indemnification fund

No limit

Sec. 153.

STATE FAIR BOARD (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures

$125,000

Provided, That the state fair board shall report to the legislature at the beginning of the
1999 regular session all banking fees incurred to date during the fiscal year ending June 30,
1999.

(b) There is appropriated for the above agency from the following special revenue fund
or funds all moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures, other than refunds authorized by law and remittances of
sales tax to the department of revenue, shall not exceed the following:

State fair fee fund

No limit

Provided, That expenditures from the state fair fee fund for official hospitality shall not
exceed $2,000.

Non-fair days activities fee fund

No limit

State fair special cash fund

No limit

(c) Upon request of the state fair board, the attorney general shall provide legal services
for the board during fiscal year 1999.

Sec. 154.

KANSAS WHEAT COMMISSION (a) There is appropriated for the above agency from the following special revenue fund
or funds 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:

Kansas wheat commission fund

$3,347,691

Provided, That all contracts made by the Kansas wheat commission with United States wheat
associates, inc., shall contain a provision that United States wheat associates, inc., shall not
expend any of the moneys provided by the Kansas wheat commission for any purpose not
authorized by the Kansas wheat act: Provided further, That expenditures from the Kansas
wheat commission fund for official hospitality shall not exceed $30,000.

Sec. 155.

STATE CONSERVATION COMMISSION (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures

$585,261

Water plan special revenue fund

$9,633,250

Land reclamation fee fund

No limit

Riparian & wetland areas project--federal fund

No limit

Watershed protect approach/WTR RSRCE MGT fund

No limit

Conversion of materials and equipment fund

No limit

(c) Subject to the limitation on total expenditures from the water plan special revenue
fund, expenditures may be made by the above agency from the water plan special revenue
fund for the following specified purposes, subject to the expenditure limitations prescribed
therefor:

Land treatment cost-share programs

$4,450,000

Provided, That expenditures from the land treatment cost-share programs account of the
water plan special revenue fund shall be for cost-sharing grants for construction of enduring
water conservation structures on privately and publicly owned land in conservation districts
which are needed for development and improvement of the quality and quantity of Kansas
water resources: Provided further, That an amount of not to exceed $2,720,000 of the initial
allocation among conservation districts for such grants for fiscal year 1999 shall be on the
basis of allocating 60% of the amount equally among all conservation districts and allocating
40% of the amount to be initially allocated proportionally among all conservation districts
on the basis of an index composed of the measurement of nonfederal rural acreage, erosion
potential and rainfall in all conservation districts, as determined by the state conservation
commission: And provided further, That the balance of the initial allocation for such grants
for fiscal year 1999 shall be allocated to conservation districts on a priority basis, as deter-
mined by the state conservation commission and state water plan: And provided further,
That expenditures from this account for contractual technical expertise shall not exceed the
amount equal to 3% of the approved budget amount for fiscal year 1999 for the land treat-
ment cost-share programs account: And provided further, That all expenditures from this
account shall be in accordance with K.S.A. 2-1915 and amendments thereto.

Non-point source pollution

$3,000,000

Conservation district aid

$1,023,250

Multipurpose small lakes program

$231,000

Watershed dam construction

$829,000

Provided, That expenditures from the watershed dam construction account of the water
plan special revenue fund are hereby authorized for engineering contracts for watershed
planning as determined by the state conservation commission: Provided, however, That
expenditures from this account for such engineering contracts for watershed planning shall
not exceed $50,000.

Riparian and wetland program

$100,000

(d) On July 1, 1998, or as soon thereafter as moneys are available, the director of ac-
counts and reports shall transfer amounts which in the aggregate shall not exceed $9,633,250
from the state water plan fund of the Kansas water office to the water plan special revenue
fund of the state conservation commission.

(e) During the fiscal year ending June 30, 1999, the executive director of the state
conservation commission may transfer moneys from any existing account of the water plan
special revenue fund of the state conservation commission to another existing account of
the water plan special revenue fund of the state conservation commission: Provided, how-
ever, That no such transfer shall reduce the amount credited to the land treatment cost-
share programs account to less than $2,720,000: Provided further, That no such transfer
shall reduce the amount credited to the non-point source pollution account to less than
$3,000,000. The executive director of the state conservation commission shall certify each
such transfer to the director of accounts and reports and shall transmit a copy of each such
certification to the division of the budget of the department of administration and the
legislative research department.

Sec. 156.

KANSAS WATER OFFICE (a) There is appropriated for the above agency from the state general fund the following:

Water resources operating expenditures

$1,402,640

Provided, That any unencumbered balance in the water resources operating expenditures
account in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999:
Provided however, That expenditures from such reappropriated balance shall be made only
upon approval of the state finance council: Provided further, That expenditures from this
account for official hospitality shall not exceed $250.

(b) There is appropriated for the above agency from the following special revenue fund
or funds all moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:

State water plan fund

$2,877,117

Provided, That expenditures may be made from the state water plan fund for the salary and
other compensation for the GIS resource manager: Provided further, That expenditures
may be made from this fund for projects and studies as approved by the Kansas water
authority, the governor or the legislature: Provided, however, That no expenditures shall be
made from this fund to acquire any additional water storage in lake Milford or lake Perry:
And provided further, That upon appropriation to the GIS policy board for data base de-
velopment, the director of the Kansas water office and other state agencies are hereby
authorized to enter into contracts for data base development subject to applicable expend-
iture limitations therefor.

Conversion of materials and equipment fund

Water supply storage assurance fund

Provided, That any moneys deposited to the credit of the water supply storage assurance
fund which are received from water assurance districts shall be credited to a separate sub-
account: Provided further, That all expenditures from any such subaccount shall be in ad-
dition to any expenditure limitation imposed on this fund for fiscal year 1999.

State conservation storage water supply fund

Water marketing fund

No limit

Federal grants and receipts fund

No limit

General fees fund

No limit

Provided, That expenditures may be made from the general fees fund for operating ex-
penditures for the Kansas water office, including training and informational programs and
official hospitality: Provided further, That the director of the Kansas water office is hereby
authorized to fix, charge and collect fees for such programs: And provided further, That
fees for such programs shall be fixed in order to recover all or part of the operating expenses
incurred for such programs, including official hospitality: And provided further, That all
fees received for such programs and all fees received for providing access to or for furnishing
copies of public records shall be deposited in the state treasury and credited to this fund.

Water conservation projects fund

(c) On July 1, 1998, or as soon thereafter as moneys are available, the director of ac-
counts and reports shall transfer $40,000 from the state budget stabilization fund to the
state water plan fund of the Kansas water office.

Sec. 157.

DEPARTMENT OF WILDLIFE AND PARKS (a) There is appropriated for the above agency from the state general fund the following:

Operating expenditures

$4,063,527

Provided, That any unencumbered balance in the operating expenditures account in excess
of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999: Provided, however,
That expenditures from such reappropriated balance shall be made only upon approval of
the state finance council: Provided further, That expenditures may be made from the op-
erating expenditures account for the purchase of state aircraft insurance: And provided
further, That expenditures from this account for official hospitality shall not exceed $1,000.

Any unencumbered balance in excess of $100 as of June 30, 1998, in each of the following
accounts is hereby reappropriated for fiscal year 1999: Wildlife fee fund diversion repay-
ment.

(b) There is appropriated for the above agency from the following special revenue fund
or funds 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:

Wildlife fee fund

$19,835,822

Provided, That additional expenditures may be made from the wildlife fee fund for fiscal
year 1999 for the purposes of compensating federal aid program expenditures if necessary
in order to comply with requirements established by the United States fish and wildlife
service for the utilization of federal aid funds: Provided further, That all such expenditures
shall be in addition to any expenditure limitation imposed upon the wildlife fee fund for
fiscal year 1999: And provided further, That the secretary of wildlife and parks shall report
all such expenditures to the governor and the legislature as appropriate: And provided
further, That expenditures from this fund for official hospitality shall not exceed $1,000.

Parks fee fund

$3,666,496

Provided, That additional expenditures may be made from the parks fee fund for fiscal year
1999 for the purposes of compensating federal aid program expenditures if necessary in
order to comply with requirements established by the United States fish and wildlife service
for the utilization of federal aid funds: Provided further, That all such expenditures shall be
in addition to any expenditure limitation imposed upon the parks fee fund for fiscal year
1999: And provided further, That the secretary of wildlife and parks shall report all such
expenditures to the governor and the legislature as appropriate.

Boating fee fund

$988,015

Provided, That additional expenditures may be made from the boating fee fund for fiscal
year 1999 for the purposes of compensating federal aid program expenditures if necessary
in order to comply with requirements established by the United States fish and wildlife
service for the utilization of federal aid funds: Provided further, That all such expenditures
shall be in addition to any expenditure limitation imposed upon the boating fee fund for
fiscal year 1999: And provided further, That the secretary of wildlife and parks shall report
all such expenditures to the governor and the legislature as appropriate: And provided
further, That expenditures from this fund for official hospitality shall not exceed $1,000.

Central aircraft fund

No limit

Provided, That expenditures may be made by the above agency from the central aircraft
fund for aircraft operating expenditures, for aircraft maintenance and repair, to provide
aircraft services to other state agencies, and for the purchase of state aircraft insurance:
Provided further, That the secretary of wildlife and parks is hereby authorized to fix, charge
and collect fees for the provision of aircraft services to other state agencies: And provided
further, That such fees shall be fixed to recover all or part of the operating expenditures
incurred in providing such services: And provided further, That all fees received for such
services shall be credited to this fund.

Wildlife and parks nonrestricted fund

No limit

Provided, That all moneys received under K.S.A. 32-990, 32-991, 32-992, 32-993, 32-994
and 32-1173, and amendments to such sections, other than moneys restricted by K.S.A. 32-
990, 32-991, 32-992, 32-993, 32-994 and 32-1173, and amendments to such sections, shall
be deposited in the state treasury and credited to the wildlife and parks nonrestricted fund:
Provided further, That expenditures from this fund may be made for federal aid eligible
expenditures at the discretion of the secretary of wildlife and parks.

Water plan special revenue fund

$50,000

Prairie spirit rails-to-trails fee fund

$2,000

Nongame wildlife improvement fund

No limit

Wildlife conservation fund

No limit

Mined-land donation fund

No limit

Federally licensed wildlife areas fund

No limit

State agricultural production fund

No limit

Land and water conservation fund--local

No limit

Land and water conservation fund--state

No limit

El Dorado state park--gifts and donations fund

No limit

Development and promotions fund

No limit

Department of wildlife and parks private gifts and donations fund

No limit

Fish and wildlife restitution fund

No limit

Parks restitution fund

No limit

Nonfederal grants fund

No limit

Federal grants fund

No limit

Mined land donation fund

No limit

Suspense fund

No limit

Employee maintenance deduction clearing fund

No limit

(c) On July 1, 1998, or as soon thereafter as moneys are available therefor, the director
of accounts and reports shall transfer $50,000 from the state water plan fund of the Kansas
water office to the water plan special revenue fund of the department of wildlife and parks.

(d) On July 15, 1998, or as soon thereafter as moneys are available, the director of
accounts and reports shall transfer an amount not to exceed $35,000 specified by the sec-
retary of wildlife and parks from the wildlife fee fund of the department of wildlife and
parks to the El Dorado correctional facility--general fees fund of the department of cor-
rections.

(e) On or before July 10, 1998, and on or before the 10th day of each month thereafter
during fiscal year 1999, the director of accounts and reports shall transfer from the state
general fund to the wildlife and parks nonrestricted fund interest earnings based upon: (1)
The average daily balance of moneys in the wildlife and parks nonrestricted fund for the
preceding month, and (2) the net earnings rate of the pooled money investment board
portfolio for the preceding month.

(f) In addition to the other purposes for which expenditures may be made by the de-
partment of wildlife and parks from the moneys appropriated in the parks fee fund for the
fiscal year ending June 30, 1999, as authorized by this or other appropriation act of the 1998
regular session of the legislature, expenditures may be made from the parks fee fund for
fiscal year 1999 for operating expenditures and capital improvement projects for the pur-
poses of maintaining and repairing the Prairie Spirit rail trail in Allen, Anderson and Franklin
counties, including, but not limited to, the expenses of operating of park equipment by
employees of the department of wildlife and parks that are assigned to the state park system.

(g) In addition to the other purposes for which expenditures may be made by the de-
partment of wildlife and parks from the moneys appropriated in the wildlife conservation
fund for the fiscal year ending June 30, 1999, as authorized by this or other appropriation
act of the 1998 regular session of the legislature, expenditures shall be made from the wildlife
conservation fund for the purpose of repairing or replacing bridge no. R3-CHBW-06 at the
Cheyenne Bottoms wildlife area: Provided, That the design and construction specifications
for this project shall be prepared by the Kansas department of transportation, in cooperation
with the department of wildlife and parks.

Sec. 158. Position Limitations. The number of full-time and regular part-time positions
equated to full-time, excluding seasonal and temporary positions, paid from appropriations
for fiscal year 1999 made in this or other appropriation act of the 1998 regular session of
the legislature for the following agency or agencies shall not exceed the following, except
upon approval of the state finance council:

Kansas Department of Agriculture

308.0

Kansas Animal Health Department

30.0

State Fair Board

18.0

Kansas Wheat Commission

8.0

State Conservation Commission

13.5

Kansas Water Office

21.5

Department of Wildlife and Parks

392.3

Sec. 159.

DEPARTMENT OF TRANSPORTATION (a) There is appropriated for the above agency from the following special revenue fund
or funds, all moneys now or hereafter lawfully credited to and available in such fund or
funds, except that expenditures shall not exceed the following:

State highway fund

No limit

Provided, That no expenditures may be made from the state highway fund other than for
the purposes specifically authorized by this or other appropriation act.

Special city and county highway fund

No limit

County equalization and adjustment fund

$2,500,000

Highway special permits fund

No limit

Highway bonds debt service fund

No limit

Rail services improvement fund

No limit

Rail service assistance program loan guarantee fund

No limit

Railroad rehabilitation loan guarantee fund

No limit

Provided, That expenditures from the railroad rehabilitation loan guarantee fund shall not
exceed the amount which the secretary of transportation is obligated to pay during the fiscal
year ending June 30, 1999, in satisfaction of liabilities arising from the unconditional guar-
antee of payment which was entered into by the secretary of transportation in connection
with the mid-states port authority federally taxable revenue refunding bonds, series 1994,
dated May 1, 1994, authorized by K.S.A. 12-3420 and amendments thereto and guaranteed
pursuant to K.S.A. 75-5031 and amendments thereto.

Interagency motor vehicle fuel sales fund

No limit

Provided, That expenditures may be made from the interagency motor vehicle fuel sales
fund to provide and sell motor vehicle fuel to the Kansas highway patrol: Provided further,
That the secretary of transportation is hereby authorized to fix, charge and collect fees for
motor vehicle fuel sold to the Kansas highway patrol: And provided further, That such fees
shall be fixed in order to recover all or part of the expenses incurred in providing motor
vehicle fuel to the Kansas highway patrol: And provided further, That all fees received for
such sales of motor vehicle fuel shall be credited to this fund.

Elderly and disabled coordinated public transportation assistance fund

No limit

Public use general aviation airport development fund

No limit

(b) Expenditures may be made by the above agency from the state highway fund for
the following specified purposes: Provided, That expenditures from the state highway fund
other than refunds authorized by law for the following specified purposes shall not exceed
the limitations prescribed therefor as follows:

Agency operations

$207,692,071

Provided, That expenditures from the agency operations account of the state highway fund
for official hospitality by the secretary of transportation shall not exceed $1,000: Provided,
however, That expenditures may be made from this account for state aircraft insurance:
Provided further, That expenditures may be made from this account for engineering services
furnished to counties for road and bridge projects under K.S.A. 68-402e and amendments
thereto.

Conference fees

No limit

Provided, That the secretary of transportation is hereby authorized to fix, charge and collect
conference, training and workshop attendance and registration fees for conferences, training
seminars and workshops sponsored or cosponsored by the department: Provided further,
That such fees shall be deposited in the state treasury and credited to the conference fees
account of the state highway fund: And provided further, That expenditures may be made
from this account to defray all or part of the costs of the conferences, training seminars and
workshops.

Substantial maintenance

No limit

Claims

No limit

Payments for city connecting links

$2,240,000

Federal local aid programs

No limit

Pre-1992 bond services fees

No limit

Construction, remodeling and special maintenance projects forbuildings

$7,972,315

Provided, That expenditures may be made from the construction, remodeling and special
maintenance projects for buildings account of the state highway fund of amounts in unex-
pended balances as of June 30, 1998, in capital improvement project accounts of projects
approved for prior fiscal years: Provided further, That expenditures from this account of
amounts in such unexpended balances shall be in addition to any expenditure limitation
imposed on this account for fiscal year 1999: And provided further, That in addition to the
other purposes for which expenditures may be made by the above agency from the moneys
appropriated in the state highway fund for fiscal year 1999 by this or other appropriation
act of the 1998 regular session of the legislature, expenditures may be made by the above
agency from the state highway fund for fiscal year 1999 for the acquisition of real estate for
use as a materials storage and mixing strip for the subarea located at Pittsburg, Kansas, by
purchase or exchange for currently owned real estate, to replace the materials storage and
mixing strip located at the south edge of Girard, Kansas, on state highway K-7.

Other capital improvements

No limit

(c) On April 1, 1999, the director of accounts and reports shall transfer from the motor
pool service fund of the department of administration to the state highway fund of the
department of transportation an amount determined to be equal to the sum of the annual
vehicle registration fees for each vehicle owned or leased by the state or any state agencies
in accordance with K.S.A. 75-4611 and amendments thereto.

(d) Upon notification from the secretary of transportation that an amount is due and
payable from the railroad rehabilitation loan guarantee fund, the director of accounts and
reports shall transfer from the state highway fund to the railroad rehabilitation loan guar-
antee fund the amount certified by the secretary as due and payable.

(e) Any transfer of money during the fiscal year ending June 30, 1999, from the state
highway fund to other state agencies, resulting from a contract for services shall be in
addition to any expenditure limitation imposed on the state highway fund for the fiscal year
ending June 30, 1999.

(f) Any transfer of money during the fiscal year ending June 30, 1999, from the state
highway fund to the highway bonds debt service fund shall be in addition to any expenditure
limitation imposed on the state highway fund for the fiscal year ending June 30, 1999.

(g) Position limitations. The number of full-time and regular part-time positions equated
to full-time, excluding seasonal and temporary positions, paid from appropriations for the
fiscal year ending June 30, 1999, made in this or other appropriation act of the 1998 regular
session of the legislature for the following agency or agencies shall not exceed the following,
except upon approval of the state finance council:

Department of Transportation

3,129.5

Sec. 160. Kansas savings incentive program. (a) In addition to other expenditures au-
thorized by law, expenditures may be made from the agency operations account of the state
highway fund appropriated by this act for the fiscal year ending June 30, 1999, by the
department of transportation for the following purposes: (1) Salary bonus payments to per-
manent full-time or regular part-time employees of the state agency at the discretion of the
agency head, (2) purchase or other acquisition of technology equipment which was included
in the budget estimates for fiscal year 1999 submitted by the state agency pursuant to K.S.A.
75-3717 and amendments thereto, and (3) professional development training including of-
ficial hospitality: Provided, That all such expenditures from such fund for the fiscal year
1999 shall be in addition to any expenditure limitation imposed on the agency operations
account of the state highway fund for fiscal year 1999: Provided, however, That the total
amount of such expenditures from the agency operations account of the state highway fund
for fiscal year 1999 shall not exceed the amount equal to 50% of the unexpended portion
of the amount authorized to be expended from the agency operations account of the state
highway fund for fiscal year 1998 for agency operations, as determined by the director of
accounts and reports: Provided further, That the total gross amount of any such salary bonus
payments to any individual employee during fiscal year 1999 shall not exceed $1,000: And
provided further, That the provisions of this subsection shall apply only to: (1) That portion
of the moneys in the agency operations account of the state highway fund from which
expenditures may be made for agency operations, and (2) shall not include that portion of
moneys which may be expended for other operating expenses in the regular maintenance
subprogram.

(b) Any unencumbered balance in excess of $100 as of June 30, 1998, in any account
of any special revenue fund of the department of transportation, which was appropriated
by subsection (b) of section 106 of chapter 123 of the 1997 Session Laws of Kansas and
which is not otherwise specifically appropriated or limited by this or other appropriation act
of the 1998 regular session of the legislature, is hereby appropriated for the fiscal year ending
June 30, 1999, for the purposes authorized in subsection (a). All expenditures from any such
account of any such special revenue fund shall be in addition to any expenditure limitation
imposed on such special revenue fund for the fiscal year ending June 30, 1999. On July 1,
1998, each Kansas quality management account and each KQM expenditure account of any
special revenue fund reappropriated by this subsection (b) are hereby redesignated as Kansas
savings incentive accounts.

(c) No salary bonus payment paid pursuant to this section during fiscal year 1999 shall
be compensation, within the meaning of K.S.A. 74-4901 et seq., and amendments thereto,
for any purpose under the Kansas public employees retirement system and shall not be
subject to deductions for employee contributions thereunder. Each salary bonus payment
paid under this section shall be a bonus, as defined by 29 C.F.R. 778, and shall be in addition
to the regular earnings which that employee may be entitled or for which the employee may
become eligible.

Sec. 161. Kansas savings incentive program. (a) In addition to other expenditures au-
thorized by law, expenditures may be made from any account of the state general fund
reappropriated by this act for the fiscal year ending June 30, 1999, for any state agency
named in this act for the following purposes: (1) Salary bonus payments to permanent
full-time or regular part-time employees of the state agency at the discretion of the agency
head, (2) purchase or other acquisition of technology equipment which was included in the
budget estimates for fiscal year 1999 submitted by the state agency pursuant to K.S.A. 75-
3717 and amendments thereto, and (3) professional development training including official
hospitality: Provided, however, That the total of all such expenditures from such account of
the state general fund for the fiscal year 1999 shall not exceed the amount equal to 50% of
the amount of the unencumbered balance as of June 30, 1998, in such account of the state
general fund that is reappropriated for fiscal year 1999 and that is in excess of the amount
authorized to be expended for fiscal year 1999 from such reappropriated balance, as deter-
mined by the director of accounts and reports: Provided further, That the total gross amount
of any such salary bonus payments to any individual employee during fiscal year 1999 that
are paid under subsection (b) or this subsection shall not exceed $1,000: And provided
further, That the provisions of this subsection shall apply only to that portion of any such
account from which expenditures may be made for state operations: And provided further,
That all such expenditures from the reappropriated balance in any such account for the
fiscal year 1999 shall be in addition to any expenditure limitation imposed on expenditures
from the reappropriated balance in any such account for fiscal year 1999.

(b) In addition to other expenditures authorized by law, expenditures may be made
from any special revenue fund appropriated by this act for the fiscal year ending June 30,
1999, for a state agency named in this act for the following purposes: (1) Salary bonus
payments to permanent full-time or regular part-time employees of the state agency at the
discretion of the agency head, (2) purchase or other acquisition of technology equipment
which was included in the budget estimates for fiscal year 1999 submitted by the state agency
pursuant to K.S.A. 75-3717 and amendments thereto, and (3) professional development
training including official hospitality: Provided, That all such expenditures from such fund
for the fiscal year 1999 shall be in addition to any expenditure limitation imposed on such
fund or any account thereof for fiscal year 1999: Provided, however, That the total amount
of such expenditures from such fund for fiscal year 1999 shall not exceed the amount equal
to 50% of the unexpended portion of the amount authorized to be expended from such fund
for fiscal year 1998 for state operations, as determined by the director of accounts and
reports, or, in the case of no limit appropriations, as determined by the director of the
budget: Provided further, That the total gross amount of any such salary bonus payments
to any individual employee during fiscal year 1999 that are paid under subsection (a) or this
subsection shall not exceed $1,000: And provided further, That the provisions of this sub-
section shall apply only to: (1) That portion of the moneys in each account of a special
revenue fund from which portion expenditures may be made for state operations, and (2)
that portion of the moneys in a special revenue fund, that does not have any such accounts
specified in this or other appropriation act, from which portion expenditures may be made
for state operations.

(c) (1) Any unencumbered balance in excess of $100 as of June 30, 1998, in any account
of the state general fund of any state agency named in this act, which was reappropriated
by subsection (c)(1) of section 107 of chapter 123 of the 1997 Session Laws of Kansas and
which is not otherwise specifically appropriated or limited by this or other appropriation act
of the 1998 regular session of the legislature, is hereby reappropriated for the fiscal year
ending June 30, 1999, and may be expended for the purposes authorized in subsections (a)
and (b).

(2) Any unencumbered balance in excess of $100 as of June 30, 1998, in any account
of any special revenue fund of any state agency named in this act, which was appropriated
by subsection (c)(2) of section 107 of chapter 123 of the 1997 Session Laws of Kansas and
which is not otherwise specifically appropriated or limited by this or other appropriation act
of the 1998 regular session of the legislature, is hereby appropriated for the fiscal year ending
June 30, 1999, and may be expended for the purposes authorized in subsections (a) and (b).
All expenditures from any such account of any such special revenue fund shall be in addition
to any expenditure limitation imposed on such special revenue fund for fiscal year 1999.

(3) On July 1, 1998, each Kansas quality management account and each KQM expend-
iture account of the state general fund and each Kansas quality management account and
each KQM expenditure account of any special revenue fund reappropriated by this subsec-
tion (c) are hereby redesignated as Kansas savings incentive accounts.

(d) No salary bonus payment paid pursuant to this section during fiscal year 1999 shall
be compensation, within the meaning of K.S.A. 74-4901 et seq., and amendments thereto,
for any purpose under the Kansas public employees retirement system and shall not be
subject to deductions for employee contributions thereunder. Each salary bonus payment
paid under this section shall be a bonus, as defined by 29 C.F.R. 778, and shall be in addition
to the regular earnings which that employee may be entitled or for which the employee may
become eligible.

(e) The provisions of this section shall not apply to any state agency named in section
22 of chapter 123 of the 1997 Session Laws of Kansas or to the department of transportation.

Sec. 162. (a) No moneys appropriated for the fiscal year ending June 30, 1998, or the
fiscal year ending June 30, 1999, to the attorney general or to any other state agency shall
be expended for any contingency fee payments or any other compensation payments to any
law firm that entered into the engagement and contingency agreement with the attorney
general, pursuant to such engagement and contingency agreement, or for any activities or
operations of the attorney general or the office of the attorney general conducted or un-
dertaken for the implementation or administration of or for any other purpose regarding
such engagement and contingency agreement, except as specifically authorized and directed
by this act with respect to terminating such engagement and contingency agreement, nor
shall any other funds of any agency of the state government of Kansas be utilized for any
such purpose. It is the intent of this section to invoke and exercise the ``termination due to
lack of funding appropriation'' clause, contained in the contractual provisions attachment
form DA-146a, of the engagement and contingency agreement.

(b) The attorney general is hereby authorized and directed to terminate forthwith the
engagement and contingency agreement entered into by the attorney general with such law
firms pursuant to the ``termination due to lack of funding appropriation'' clause, contained
in the contractual provisions attachment form DA-146a, of the engagement and contingency
agreement.

(c) As used in this section:

(1) ``Attorney general'' means the attorney general of the state of Kansas and includes
any officer or employee of the office of the attorney general of the state of Kansas;

(2) ``law firm'' means any of the law firms of Entz & Chanay, P.A., Scruggs, Millette,
Lawson, Bozeman & Dent, P. A., and Ness, Motley, Loadholt, Richardson & Poole, P.A.,
and includes any attorney who is a member of, who is employed by or who has contracted
with or is otherwise associated with or performing legal services for any such law firm;

(3) ``state agency'' has the meaning ascribed by K.S.A. 75-3701 and amendments
thereto;

(4) ``engagement and contingency agreement'' means the engagement and contingency
agreement entered into by the law firms with the attorney general to provide legal services
to the state of Kansas for the purpose of seeking injunctive relief, monetary relief, including,
without limitation, damages and civil penalties, and other relief against tobacco industry
companies and related entities in litigation arising from the advertising, marketing, manu-
facturing, promotion, sale and/or distribution of cigarettes and other tobacco products; and

(5) ``activities or operations'' means any normal operating activities or operations of the
attorney general or any of the officers or employees of the office of the attorney general
and includes any meetings, communications, legal work or any administrative activity of any
kind participated in or entered into or conducted in any manner by the attorney general or
any officer or employee of the office of the attorney general.

Sec. 163. (a) On or before October 1, 1998, each state agency named in this or any
other appropriation act of the 1998 regular session of the legislature shall submit a report
to the members of the legislative coordinating council, the chair, vice-chair and ranking
minority member of the committee on ways and means of the senate, the subcommittee
chair of the subcommittee of the committee on ways and means of the senate that is assigned
the state agency's budget for review, the chair, vice-chair and ranking minority member of
the committee on appropriations of the house of representatives, and the subcommittee
chair of the subcommittee of the committee on appropriations of the house of representa-
tives that is assigned the state agency's budget for review. Such report shall detail (1) any
special revenue fund receipts for the fiscal year ending June 30, 1998, which were in excess
of those amounts included in the budget for the fiscal year ending June 30, 1998, of the
state agency as approved by the legislature during 1998 regular session, (2) any federal
grants received by such agency which were not included in the budget for the fiscal year
ending June 30, 1998, of such state agency as approved by the legislature during 1998 regular
session, and (3) any moneys received by the state agency from nongovernmental sources
which were not included in the budget for the fiscal year ending June 30, 1998, of such
state agency as approved by the legislature during 1998 regular session.

(b) On or before the first day of the 1999 regular session of the legislature each state
agency named in this or any other appropriation act of the 1998 regular session of the
legislature shall submit a report to the members of the legislative coordinating council, the
chair, vice-chair and ranking minority member of the committee on ways and means of the
senate, the subcommittee chair of the subcommittee of the committee on ways and means
of the senate that is assigned the state agency's budget for review, the chair, vice-chair and
ranking minority member of the committee on appropriations of the house of representa-
tives, and the subcommittee chair of the subcommittee of the committee on appropriations
of the house of representatives that is assigned the state agency's budget for review. Such
report shall detail (1) any special revenue fund receipts for the fiscal year ending June 30,
1999, which are projected to be in excess of those amounts included in the budget for the
fiscal year ending June 30, 1999, of the state agency as approved by the legislature during
1998 regular session, (2) any federal grants received or anticipated to be received by the
state agency which were not included in the budget for the fiscal year ending June 30, 1999,
of the state agency as approved by the legislature during 1998 regular session, and (3) any
moneys received or anticipated to be received by the state agency from nongovernmental
sources which were not included in the budget for the fiscal year ending June 30, 1999, of
such state agency as approved by the legislature during 1998 regular session.

Sec. 164. On July 1, 1998, K.S.A. 79-2964 is hereby amended to read as follows: 79-
2964. There is hereby created the county and city revenue sharing fund. All moneys trans-
ferred or credited to such fund under the provisions of this act or any other law shall be
allocated and distributed in the manner provided herein. The director of accounts and
reports in each year on July 15 and December 10, shall make transfers in equal amounts
which in the aggregate equal 3.5% of the total retail sales and compensating taxes credited
to the state general fund pursuant to articles 36 and 37 of chapter 79 of the Kansas Statutes
Annotated and acts amendatory thereof and supplemental thereto during the preceding
calendar year from the state general fund to the county and city revenue sharing fund,
except that: (a) The transfers on July 15 and December 10 of each year shall be in equal
amounts which in the aggregate equal 2.823% of such taxes credited to the state general
fund during the preceding calendar year; and (b) the amount of the transfer on each such
date during state fiscal year ~~1998~~ 1999 shall be equal to ~~101.75%~~ 102.4% of the amount
transferred on the same date during state fiscal year ~~1997~~ 1998. All such transfers are subject
to reduction under K.S.A. 75-6704 and amendments thereto. All transfers made in accord-
ance with the provisions of this section shall be considered to be demand transfers from the
state general fund.

Sec. 165. On July 1, 1998, K.S.A. 79-3425i is hereby amended to read as follows: 79-
3425i. On January 15 and July 15 of each year, the director of accounts and reports shall
transfer a sum equal to the total taxes collected under the provisions of K.S.A. 79-6a04 and
79-6a10, and amendments thereto, and credited to the state general fund during the six
months next preceding the date of transfer, from the state general fund to the special city
and county highway fund, created by K.S.A. 79-3425, and amendments thereto, except that:
(1) Such transfers are subject to reduction under K.S.A. 75-6704, and amendments thereto;
and (2) the amount of the transfer on each such date during state fiscal year ~~1998~~ 1999 shall
not exceed the amount equal to ~~101.75%~~ 102.4% of the amount transferred on the same
date during state fiscal year ~~1997~~ 1998. All transfers under this section shall be considered
to be demand transfers from the state general fund.

Sec. 166. On July 1, 1998, K.S.A. 79-34,147 is hereby amended to read as follows:
79-34,147. (a) On each January 1, April 1, July 1 and October 1, the secretary of revenue
shall certify to the director of accounts and reports the amount equal to 7.628% of the total
revenues received by the secretary from the taxes imposed under the Kansas retailers' sales
tax act and deposited in the state treasury and credited to the state general fund during the
preceding three calendar months.

(b) Upon receipt of each certification under subsection (a), the director of accounts and
reports shall transfer from the state general fund to the state highway fund an amount equal
to the amount so certified, on each January 1, April 1, July 1 and October 1, except that the
amount of the transfer on each such date during state fiscal year ~~1998~~ 1999 shall not exceed
the amount equal to ~~101.75%~~ 102.4% of the amount transferred on the same date during
state fiscal year ~~1997~~ 1998. All transfers made pursuant to this section are subject to reduc-
tion under K.S.A. 75-6704, and amendments thereto.

(c) All transfers made in accordance with the provisions of this section shall be consid-
ered to be demand transfers from the state general fund.

Sec. 167.

STATE FAIR BOARD (a) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year ending June 30, 1999, 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:

State fair capital improvements fund

No limit

Grandstand renovation project fund

No limit

Grandstand cost of issuance fund

No limit

Grandstand principal and interest fund

No limit

Grandstand renovation reserve fund

No limit

Grandstand rebate fund

No limit

Grandstand renovation surplus fund

No limit

Grandstand contingency fund

No limit

SBSF--encampment building renovation fund

No limit

EDIF--encampment renovation fund

No limit

(b) In addition to the other purposes for which expenditures may be made from the
state budget stabilization fund for fiscal year 1999, expenditures may be made by the above
agency from the state budget stabilization fund for fiscal year 1999 for the following specified
purpose or purposes, subject to the expenditure limitations prescribed therefor:

New commercial building

$848,000

Provided, That all expenditures by the above agency from the state budget stabilization fund
for fiscal year 1999 for the new commercial building shall be in addition to any expenditure
limitation imposed on the state budget stabilization fund for fiscal year 1999.

Sec. 168.

DEPARTMENT OF SOCIAL AND REHABILITATION SERVICES (a) There is appropriated for the above agency from the state institutions building fund
for the fiscal year ending June 30, 1999, for the capital improvement project or projects
specified as follows:

Rehabilitation and repair projects

$3,965,000

Provided, That the secretary of social and rehabilitation services is hereby authorized to
transfer moneys during fiscal year 1999 from the rehabilitation and repair projects account
to a rehabilitation and repair account for any institution, as defined by K.S.A. 76-12a01 or
76-12a18 and amendments thereto, for projects approved by the secretary of social and
rehabilitation services: Provided further, That expenditures also may be made from this
account during fiscal year 1999 for the purposes of rehabilitation and repair for facilities of
the department of social and rehabilitation services other than any institution, as defined by
K.S.A. 76-12a01 or 76-12a18 and amendments thereto.

(b) In addition to the purposes for which expenditures may be made by the above agency
from the other state fees fund for fiscal year 1999, expenditures may be made by the above
agency from the other state fees fund for fiscal year 1999 for the following capital improve-
ment project or projects, subject to the expenditure limitations prescribed therefor:

Area office rehabilitation and repair

$106,000

Provided, That expenditures from the area office rehabilitation and repair account shall be
in addition to any expenditure limitation imposed on the other state fees fund for fiscal year
1999.

Sec. 169.

KANSAS STATE SCHOOL FOR THE BLIND (a) There is appropriated for the above agency from the state institutions building fund
for the fiscal year ending June 30, 1999, for the capital improvement project or projects
specified as follows:

Rehabilitation and repair projects

$289,654

Sec. 170.

KANSAS STATE SCHOOL FOR THE DEAF (a) There is appropriated for the above agency from the state institutions building fund
for the fiscal year ending June 30, 1999, for the capital improvement project or projects
specified as follows:

Rehabilitation and repair projects

$374,078

Install air conditioning in Roth dormitories and Roberts academicbuilding

$154,735

Sec. 171.

DEPARTMENT OF CORRECTIONS (a) There is appropriated for the above agency from the state general fund for the fiscal
year ending June 30, 1999, for the capital improvement project or projects specified as
follows:

Debt service payment for the revenue refunding bond issue

$6,802,000

Debt service payment for the Wichita work release facility bond issue

$163,000

Debt service payment for the Ellsworth correctional facility at Ellsworth,Kansas

$1,675,000

Debt service payment for the El Dorado correctional facility site utilitiesreplacement project

$1,258,000

Any unencumbered balance in each of the following accounts in excess of $100 as of June
30, 1998, is hereby reappropriated for fiscal year 1999: Capacity expansion planning.

(b) There is appropriated for the above agency from the correctional institutions build-
ing fund for the fiscal year or years specified, for the capital improvement project or projects
specified as follows:

Capital improvements--rehabilitation, remodeling, renovation and repairof correctional institutions

For the fiscal year ending June 30, 1998[cm$149,886[cm For the fiscal year ending June 30, 1999[cm$4,253,225

Provided, That the secretary of corrections is hereby authorized to transfer moneys during
fiscal year 1999 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 1999 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: Provided, however, That the aggregate of all transfers
from this account to an account or accounts of any institution under the jurisdiction of the
secretary of corrections to be expended in fiscal year 1998 and fiscal year 1999 for the
purposes of capacity expansion planning for planning for new reception and diagnostic unit
shall not exceed $87,630.

Debt service payment for the revenue refunding bond issue
For the fiscal year ending June 30, 1999

$500,000

(c) In addition to the other purposes for which expenditures may be made by the above
agency from the correctional industries fund for fiscal year 1999, expenditures may be made
by the above agency from the correctional industries fund for fiscal year 1999 for the fol-
lowing capital improvement project or projects, subject to the expenditure limitations pre-
scribed therefor:

Construct industries building at Lansing

$876,025

(d) On the effective date of this act, the appropriation of all moneys credited to and
available in the correctional facilities expansion projects revenue fund for the fiscal year
ending June 30, 1998, by section 45(g) of chapter 192 of the 1997 Session Laws of Kansas
for the capital improvements projects for expansion at Hutchinson correctional facility is
hereby lapsed and the correctional facilities expansion projects revenue fund established by
section 45(g) of chapter 192 of the 1997 Session Laws of Kansas is hereby abolished.

(e) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year ending June 30, 1999, 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 offenders incarceration and truth in sentencing incentivegrants--federal fund

No limit

Ellsworth correctional facility--principal and interest fund--KDFA Bbonds

No limit

Lease revenue bond issue--principal and interest fund--J Bonds

No limit

Revenue refunding bond--principal and interest fund--KDFA Lbonds

No limit

Sec. 172.

STATE HISTORICAL SOCIETY (a) There is appropriated for the above agency from the state general fund for the fiscal
year ending June 30, 1999, for the capital improvement project or projects specified as
follows:

Rehabilitation and repair projects

$334,573

(b) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year ending June 30, 1999, 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:

EDIF first territorial capitol renovation project fund

$71,000

Provided, That no expenditures shall be made from the EDIF first territorial capitol reno-
vation project fund except upon approval of the state finance council acting on this matter
which is hereby characterized as a matter of legislative delegation and subject to the guide-
lines prescribed by subsection (c) of K.S.A. 75-3711c and amendments thereto: Provided,
however, That, if the secretary of the state historical society has entered into a signed
agreement with a responsible party that would transfer from the state the future daily op-
eration and maintenance of the first territorial capitol historical site, then the state finance
council shall approve expenditures from this fund for the first territorial capitol renovation
project.

EDIF--completion of historic sites

No limit

(c) On July 1, 1998, or as soon thereafter as moneys are available, the director of ac-
counts and reports shall transfer $100,000 from the Kansas economic development endow-
ment account of the state economic development initiatives fund of the department of
commerce and housing to the EDIF--completion of historic sites fund of the state historical
society.

Sec. 173.

INSURANCE DEPARTMENT (a) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year ending June 30, 1999, all moneys now or hereafter lawfully
credited to and available in such fund or funds, except that expenditures shall not exceed
the following:

Insurance building principal and interest payment fund

No limit

Insurance department rehabilitation and repair fund

No limit

Sec. 174.

DEPARTMENT OF ADMINISTRATION (a) There is appropriated for the above agency from the state general fund for the fiscal
year ending June 30, 1999, for the capital improvement project or projects specified as
follows:

Energy conservation improvements--debt service

$3,127,981

Paint and grounds shop--debt service

$14,864

Cedar Crest repair and renovation

380,400

Judicial center carpet replacement

$64,000

Judicial center rehabilitation and repair

$50,000

Rehabilitation and repair--statehouse and cedar crest

$25,000

Any unencumbered balance in excess of $100 as of June 30, 1998, in each of the following
capital improvement accounts is hereby reappropriated for fiscal year 1999: Rehabilitation
and repair--statehouse, judicial center and governor's residence; fire and safety alarms--
statehouse; planning for memorial hall renovation; roof repair at center section and ro-
tunda--statehouse; cedar crest repair and renovation; memorial hall bond anticipation note.

(b) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year ending June 30, 1999, all moneys now or hereafter lawfully
credited to and available in such fund or funds, except that expenditures shall not exceed
the following:

Master lease program fund

No limit

State buildings depreciation fund

(c) In addition to the other purposes for which expenditures may be made from the
state budget stabilization fund for fiscal year 1999, expenditures may be made by the above
agency from the state budget stabilization fund for fiscal year 1999 for the following specified
purpose or purposes, subject to the expenditure limitations prescribed therefor:

Statehouse grounds & facility improvements

$750,000

Provided, That all expenditures by the above agency from the state budget stabilization fund
for fiscal year 1999 for the statehouse grounds & facility improvements shall be in addition
to any expenditure limitation imposed on the state budget stabilization fund for fiscal year
1999.

(d) In addition to the other purposes for which expenditures may be made by the above
agency from the building and ground fund for fiscal year 1999, expenditures may be made
by the above agency from any unencumbered balance as of June 30, 1998, in each of the
following capital improvement accounts of the building and ground fund: Parking lot re-
habilitation and repair: Provided, That expenditures for fiscal year 1999 from the unencum-
bered balance in any such account shall not exceed the amount of the unencumbered bal-
ance in such account on June 30, 1998.

(e) In addition to the other purposes for which expenditures may be made by the above
agency from the state buildings depreciation fund for fiscal year 1999, expenditures may be
made by the above agency from the following capital improvement account or accounts of
the state buildings depreciation fund during fiscal year 1999 for the following capital im-
provement project or projects, subject to the expenditure limitations prescribed therefor:

Docking fire suppression system installation

$550,000

Landon fire suppression system installation

$450,000

Docking renovation--debt service

$171,100

Special maintenance repairs and improvements--state office buildings

$100,000

Provided, That all expenditures from each such capital improvement account shall be in
addition to any expenditure limitation imposed on the state buildings depreciation fund for
fiscal year 1999.

(f) In addition to the other purposes for which expenditures may be made by the above
agency from the state buildings depreciation fund for fiscal year 1999, expenditures may be
made by the above agency from the state buildings depreciation fund from the unencum-
bered balance as of June 30, 1998, in each capital improvement account of the state buildings
depreciation fund for one or more projects approved for prior fiscal years: Provided, That
expenditures from the unencumbered balance in any such account shall not exceed the
amount of the unencumbered balance in such account on June 30, 1998: Provided further,
That all expenditures from any such account shall be in addition to any expenditure limitation
imposed on the state buildings depreciation fund for fiscal year 1999.

(g) In addition to the other purposes for which expenditures may be made by the above
agency from the state buildings operating fund for fiscal year 1999, expenditures may be
made by the above agency from the following capital improvement account or accounts of
the state buildings operating fund during fiscal year 1999 for the following capital improve-
ment project or projects, subject to the expenditure limitations prescribed therefor:

Landon state office building--debt service

$1,319,058

Paint and grounds shop--debt service

$23,374

(h) In addition to the other purposes for which expenditures may be made by the above
agency from the motor pool service fund for fiscal year 1999, expenditures may be made
by the above agency from the following capital improvement account or accounts of the
motor pool service fund during fiscal year 1999 for the following capital improvement project
or projects, subject to the expenditure limitations prescribed therefor:

Motor pool shop--debt service

$61,308

Provided, That all expenditures by the above agency from the motor pool service fund for
fiscal year 1999 for motor pool shop--debt service shall be in addition to any expenditure
limitation imposed on the motor pool service fund for fiscal year 1999.

(i) In addition to the other purposes for which expenditures may be made from the
intragovernmental printing service fund for fiscal year 1999, expenditures may be made by
the above agency from the following capital improvement account or accounts of the intra-
governmental printing service fund during fiscal year 1999 for the following capital improve-
ment project or projects, subject to the expenditure limitations prescribed therefor:

Printing plant--debt service

$219,194

(j) In addition to the other purposes for which expenditures may be made by the above
agency from the state budget stabilization fund for the fiscal year 1998, expenditures may
be made by the above agency from the state budget stabilization fund for the fiscal year
1998, for the following specified purpose or purposes, subject to the expenditure limitations
prescribed therefor:

Statehouse elevators renovation

$347,000

Provided, That all expenditures from the state budget stabilization fund for the fiscal year
1998 for the statehouse elevators renovation shall be in addition to any expenditure limitation
imposed on the state budget stabilization fund for the fiscal year 1998.

(k) In addition to the other purposes for which expenditures may be made from the
state budget stabilization fund for fiscal year 1999, expenditures may be made by the above
agency from the state budget stabilization fund for fiscal year 1999 for the statehouse ele-
vators renovation project: Provided, That all expenditures from the state budget stabilization
fund for the fiscal year 1999 for the statehouse elevators renovation project shall be in
addition to any expenditure limitation imposed on the state budget stabilization fund for
the fiscal year 1999: Provided, however, That the aggregate of all expenditures from the
state budget stabilization fund for fiscal year 1998 and for fiscal year 1999 for such statehouse
elevators renovation project, shall not exceed $347,000.

Sec. 175.

DEPARTMENT OF COMMERCE AND HOUSING (a) In addition to the other purposes for which expenditures may be made from the
Kansas economic development endowment account of the state economic development
initiatives fund for fiscal year 1999, moneys may be expended by the above agency from the
Kansas economic development endowment account of the state economic development
initiatives fund during the fiscal year 1999 for the following capital improvement project or
projects, subject to the expenditure limitations prescribed therefor:

Rehabilitation and repair--travel information centers

$35,000

Provided, That all expenditures by the above agency from the rehabilitation and repair--
travel information centers subaccount of the Kansas economic development endowment
account of the state economic development initiatives fund for fiscal year 1999 shall be in
addition to any expenditure limitation imposed on the Kansas economic development en-
dowment account of the state economic development initiatives fund for fiscal year 1999.

(b) In addition to the other purposes for which expenditures may be made from the
Kansas economic development endowment account of the state economic development
initiatives fund, expenditures may be made from the construct Olathe travel information
center subaccount of the Kansas economic development endowment account of the state
economic development initiatives fund during the fiscal year ending June 30, 1999: Provided,
That such expenditures shall not exceed the amount of the unencumbered balance in such
subaccount on June 30, 1998: Provided further, That all expenditures from the unencum-
bered balance of any such subaccount shall be in addition to any expenditure limitation
imposed on the total expenditures from the Kansas economic development endowment
account of the state economic development initiatives fund for fiscal year 1999.

Sec. 176.

FORT HAYS STATE UNIVERSITY (a) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year ending June 30, 1999, all moneys now or hereafter lawfully
credited to and available in such fund or funds, except that expenditures shall not exceed
the following:

Lewis field renovation--bond and interest sinking fund

No limit

Lewis field renovation--revenue fund

No limit

Sternberg museum gift fund

No limit

Sec. 177.

KANSAS STATE UNIVERSITY (a) There is appropriated for the above agency from the state general fund for the fiscal
year ending June 30, 1999, for the capital improvement project or projects specified as
follows:

Lease payment--Salina aeronautical center (including aeronautical lab-oratory center)

$189,446

Student fee project reserve fund

No limit

Student fee bonds principal and interest fund

No limit

Provided, That expenditures may be made from the student fee bonds principal and interest
fund for debt service, financing costs and required reserves for the capital improvement
project to renovate Van Zile hall, Putnam hall and Boyd hall pursuant to section 17(e) of
chapter 25 of the 1989 Session Laws of Kansas.

Student fee bonds repair, equipment and improvement fund

No limit

Federal construction funds fund

No limit

Bond construction funds fund

No limit

Coliseum repair, equipment and improvement fund

No limit

Housing system project revenue fund

No limit

Housing system bond and interest sinking fund

No limit

Haymaker hall bond and interest sinking fund

No limit

Student union annex I bond and interest sinking fund

No limit

Jardine terrace III bond and interest sinking fund

No limit

Housing facilities renovation bond fund, KDFA D bonds, 1989

No limit

Parking system refunding revenue bond fund, KDFA G bonds, 1995

No limit

Housing system bond fund, KDFA H bonds, 1993

No limit

Farrell library renovation/expansion--gifts/donations fund

No limit

Plan/construct/equip Farrell library renovation/expansion fund

No limit

Farrell library expansion revenue bond fund, KDFA K bonds, 1995

No limit

Recreation complex revenue bond fund, KDFA D bonds, 1993

No limit

Plant science building phase II--special revenue fund

No limit

Site improvements fund

No limit

College center construction fund

No limit

Bluemont hall defects repair fund

No limit

Engineering complex phase II private gift fund

No limit

Student recreation building repair, equipment & improvement fund

No limit

Coliseum/stadium parking repair & improvement fund

No limit

Energy conservation projects fund

No limit

Student recreational building bond and interest sinking fund

No limit

Student union renovation and expansion fund

No limit

Provided, That Kansas state university may make expenditures from the student union ren-
ovation and expansion fund for the capital improvement project to renovate and expand the
student union in an amount of not more than $11,500,000, plus all amounts required for
cost of bond issuance, cost of interest on the bonds during the construction of the project
and required reserves for the payment of principal and interest on the bonds: Provided
further, That such capital improvement project is hereby approved for Kansas state univer-
sity for the purposes of subsection (b) of K.S.A. 74-8905 and amendments thereto and the
authorization of the issuance of bonds by the Kansas development finance authority in
accordance with that statute: And provided further, That all moneys received from the
issuance of any such bonds shall be deposited in the state treasury to the credit of this fund.

Student coliseum bond fee fund

No limit

Ackert hall addition--federal fund

No limit

Ackert hall addition--gifts and grants fund

No limit

Student and staff parking garage--special revenue fund

No limit

Provided, That Kansas state university may make expenditures from the student and staff
parking garage--special revenue fund for the capital improvement project to construct a
parking garage in addition to the expenditure of other moneys appropriated therefor: Pro-
vided, however, That expenditures from this fund for such capital improvement project shall
not exceed $10,500,000 plus all amounts required for costs of any bond issuance, costs of
interest on any bond issued or obtained for such capital improvement project and any
required reserves for payment of principal and interest on any bond: Provided further, That
such capital improvement project is hereby approved for Kansas state university for the
purposes of subsection (b) of K.S.A. 74-8905 and amendments thereto and the authorization
of the issuance of bonds by the Kansas development finance authority in accordance with
that statute: And provided further, That all moneys received from the issuance of any such
bonds shall be deposited in the state treasury to the credit of this fund.

Football stadium expansion--special revenue fund

No limit

Provided, That Kansas state university may make expenditures from the football stadium
expansion--special revenue fund for the capital improvement project to expand the football
stadium in addition to the expenditure of other moneys appropriated therefor: Provided,
however, That expenditures from this fund for such capital improvement project shall not
exceed $16,000,000 plus all amounts required for costs of any such bond issuance, costs of
interest on any bonds issued or obtained for such capital improvement projects and any
required reserves for payment of principal and interest on any bond: Provided further, That
such capital improvement project is hereby approved for Kansas state university for the
purposes of subsection (b) of K.S.A. 74-8905 and amendments thereto and the authorization
of the issuance of bonds by the Kansas development finance authority in accordance with
that statute: And provided further, That all moneys received from the issuance of any such
bonds shall be deposited in the state treasury to the credit of this fund.

(c) On or before July 10, 1998, and on or before the 10th day of each month thereafter
during fiscal year 1999, the director of accounts and reports shall transfer from the state
general fund to the student coliseum bond fee fund interest earnings based on: (1) The
average daily balance of moneys in the student coliseum bond fee fund for the preceding
month, and (2) the net earnings rate of the pooled money investment portfolio for the
preceding month.

(d) In addition to the other purposes for which expenditures may be made by the above
agency from the restricted fees fund for the fiscal year ending June 30, 1999, expenditures
may be made by the above agency from the appropriate account or accounts of the restricted
fees fund during fiscal year 1999 for the following capital improvement project or projects,
subject to the expenditure limitations prescribed therefor:

Biological and agricultural engineering research storage building

No limit

Konza prairie preserve storage building

No limit

Construct materials acoustics laboratory

No limit

(e) In addition to the other purposes for which expenditures may be made by the above
agency from the student union renovation and expansion fund for the fiscal year ending
June 30, 1999, expenditures may be made by the above agency from the student union
renovation and expansion fund during fiscal year 1999 for costs associated with roof repair
on an existing portion of the student union building.

(f) In addition to the other purposes for which expenditures may be made by the above
agency from the sponsored research overhead fund for the fiscal year ending June 30, 1999,
expenditures may be made by the above agency from the sponsored research overhead fund
for the following capital improvement project or projects, subject to the expenditure limi-
tations prescribed therefor:

Accelerated testing laboratory garage addition

No limit

Accelerated testing laboratory storage/equipment shed

No limit

Salina national gas machinery laboratory

No limit

(g) During the fiscal year ending June 30, 1999, Kansas state university is hereby au-
thorized to make expenditures to raze Dennison hall.

(h) On July 1, 1998, any unencumbered balance in each of the following accounts of
the Kansas educational building fund is hereby lapsed: Handicapped accessibility improve-
ments.

(i) During the fiscal year ending June 30, 1999, Kansas state university is hereby au-
thorized to make expenditures to raze portions of building no. 025 (Seaton hall).

(j) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year ending June 30, 1998, all moneys now or hereafter lawfully
credited to and available in such fund or funds, except that expenditures shall not exceed
the following:

Football stadium expansion--special revenue fund

No limit

Provided, That Kansas state university may make expenditures from the football stadium
expansion--special revenue fund for the capital improvement project to expand the football
stadium in addition to the expenditure of other moneys appropriated therefor: Provided,
however, That expenditures from this fund for such capital improvement project shall not
exceed $16,000,000 plus all amounts required for costs of any such bond issuance, costs of
interest on any bonds issued or obtained for such capital improvement projects and any
required reserves for payment of principal and interest on any bond: Provided further, That
such capital improvement project is hereby approved for Kansas state university for the
purposes of subsection (b) of K.S.A. 74-8905 and amendments thereto and the authorization
of the issuance of bonds by the Kansas development finance authority in accordance with
that statute: And provided further, That all moneys received from the issuance of any such
bonds shall be deposited in the state treasury to the credit of this fund.

Sec. 178.

KANSAS STATE UNIVERSITY EXTENSION SYSTEMS AND AGRICULTURE RESEARCH PROGRAMS (a) In addition to the other purposes for which expenditures may be made by the above
agency from the restricted fees fund for the fiscal year ending June 30, 1999, expenditures
may be made by the above agency from the appropriate account or accounts of the restricted
fees fund during fiscal year 1999 for the following capital improvement project or projects:

Equipment/pesticide storage building

No limit

Renovate laboratories in Throckmorton hall

No limit

Warehouse expansion--department of agronomy building

No limit

Scandia experiment field office facility

No limit

Equipment/pesticide storage buildings

No limit

Southwest research extension center office/administrative facility

No limit

Southeast agriculture research center buildings

No limit

South central agronomy experiment field office and storage building

No limit

Improvements to grain science value added laboratory

No limit

(b) During the fiscal years ending June 30, 1998, and June 30, 1999, Kansas state uni-
versity extension systems and agriculture research programs is hereby authorized to make
expenditures to raze the barn, building number 882, two residences, buildings numbered
851 and 853, and two garages, buildings numbered 852 and 853a at the Hays agricultural
research center.

(c) In addition to the other purposes for which expenditures may be made by the above
agency from the sponsored overhead research fund for the fiscal year ending June 30, 1999,
expenditures may be made by the above agency from the sponsored research overhead fund
for the following capital improvement project or projects, subject to the expenditure limi-
tations prescribed therefor:

Southeast agriculture research center buildings

No limit

Sec. 179.

KANSAS STATE UNIVERSITY VETERINARY MEDICAL CENTER (a) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year ending June 30, 1999, 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:

Greyhound research facility expansion fund

No limit

Energy conservation projects fund

No limit

Sec. 180.

EMPORIA STATE UNIVERSITY (a) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year ending June 30, 1999, all moneys now or hereafter lawfully
credited to and available in such fund or funds, except that expenditures shall not exceed
the following:

Student union refurbishing fund

No limit

Bond construction funds fund

No limit

Student union addition bond and interest sinking fund

No limit

Twin towers project revenue fund

No limit

Twin towers bond and interest sinking fund

No limit

Twin towers maintenance and equipment reserve fund

No limit

Sec. 181.

PITTSBURG STATE UNIVERSITY (a) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year ending June 30, 1999, all moneys now or hereafter lawfully
credited to and available in such fund or funds, except that expenditures shall not exceed
the following:

1962 dormitory and student apartments sinking fund

No limit

1962 dormitory and student apartments revenue fund

No limit

1962 dormitory and student apartment repair and replacement fund

No limit

Horace Mann construction fund

No limit

Provided, That Pittsburg state university may make expenditures from the Horace Mann
construction fund for the renovation of the Horace Mann building: Provided further, That
the capital improvement project to renovate the Horace Mann building is hereby approved
for Pittsburg state university for the purposes of subsection (b) of K.S.A. 74-8905 and
amendments thereto and the authorization of the issuance of bonds by the Kansas devel-
opment finance authority in accordance with that statute: And provided further, That the
above agency is authorized to expend moneys in fiscal years 1998 and 1999 from restricted
fee fund sources for up-front project expenses that will be reimbursed from subsequent
project bonds proceeds: And provided further, That all moneys received from the issuance
of any such project bonds shall be deposited to the credit of this fund.

Willard hall construction fund

No limit

Provided, That Pittsburg state university may make expenditures from the Willard hall con-
struction fund for the renovation of Willard hall: Provided further, That the capital improve-
ment project to renovate Willard hall is hereby approved for Pittsburg state university for
the purposes of subsection (b) of K.S.A. 74-8905 and amendments thereto and the author-
ization of the issuance of bonds by the Kansas development finance authority in accordance
with that statute: And provided further, That the above agency is authorized to expend
moneys in fiscal years 1998 and 1999 from the housing system operations fund for up-front
project expenses that will be reimbursed from subsequent project bond proceeds: And
provided further, That all moneys received from the issuance of any such project bonds
shall be deposited to the credit of this fund.

Married student housing and men's dormitory--bond and interest sinkingfund

No limit

Married student housing and men's dormitory project revenue fund

No limit

Married student housing and men's dormitory repair and replacementfund

No limit

Suspense fund

No limit

Kansas technology center federal fund

No limit

Kansas technology center gifts and donations fund

No limit

Jack C. Overman student center renovation fund

No limit

(b) During the fiscal year ending June 30, 1999, the director of accounts and reports
shall transfer amounts specified by the president of Pittsburg state university from the Hor-
ace Mann construction fund to the appropriate accounts of the restricted fees fund to
reimburse the restricted fees fund for upfront project expenses of the capital improvement
project for the renovation of the Horace Mann building financed from the restricted fees
fund during fiscal years 1997, 1998 and 1999.

(c) During the fiscal year ending June 30, 1999, the director of accounts and reports
shall transfer amounts specified by the president of Pittsburg state university from the Wil-
lard hall construction fund to the housing system operations fund to reimburse the housing
system operations fund for up-front project expenses of the capital improvement project for
the renovation of Willard hall financed from the housing system operations fund during
fiscal years 1997, 1998 and 1999.

Sec. 182.

UNIVERSITY OF KANSAS (a) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year ending June 30, 1999, all moneys now or hereafter lawfully
credited to and available in such fund or funds, except that expenditures shall not exceed
the following:

Student union renovation revenue fund

No limit

Student health facility maintenance, repair, and equipment fee fund

No limit

Parking facilities surplus fund--KDFA G bonds, 1993

No limit

Regents center revenue fund--KDFA D bonds, 1990

No limit

Regents center bond reserve fund--KDFA D bonds, 1990

No limit

Regents center surplus fund

No limit

Regents center rebate fund

No limit

Regents center revenue refund project principal and interest--KDFA Cbonds, 1997

No limit

Student union renovation rebate fund (phase I)

No limit

Student union renovation principal and interest--KDFA C bonds,1992

No limit

Student union renovation bond reserve--KDFA C bonds, 1992

No limit

Student union renovation surplus fund--KDFA C bonds, 1992

No limit

Student union renovation rebate fund--KDFA C bonds, 1992

No limit

Bioscience research center rebate fund--KDFA series Q bonds, 1992

No limit

Bioscience research center project account--KDFA A bonds, 1994fund

No limit

Bioscience research center principal and interest payment account--KDFA A bonds, 1994 fund

No limit

Bioscience research center reserve account--KDFA A bonds, 1994fund

No limit

Bioscience research center rebate account--KDFA A bonds, 1994fund

No limit

Parking facilities refunding bonds principal and interest fund--KDFA Gbonds, 1993

No limit

Parking facilities refunding bonds reserve fund--KDFA G bonds,1993

No limit

Parking facilities refunding bonds rebate fund--KDFA G bonds, 1993

No limit

Student health facility addition revenue fund

No limit

Biosciences research center--special revenue fund

No limit

Provided, That all gifts and grants received for the capital improvement project to construct
and equip a biosciences research center, other than those received from the federal gov-
ernment for such capital improvement project, shall be deposited in the state treasury to
the credit of the biosciences research center--special revenue fund: Provided further, That
the above agency may transfer moneys during fiscal year 1999 from the sponsored research
overhead fund and from appropriate accounts of the restricted fees fund to this fund for
such capital improvement project or for debt service for such capital improvement project:
And provided further, That all transfers of moneys for fiscal year 1999 from the sponsored
research overhead fund to this fund shall be in addition to any expenditure limitation im-
posed on the sponsored research overhead fund for fiscal year 1999: And provided further,
That such capital improvement project is hereby approved for the university of Kansas for
the purposes of subsection (b) of K.S.A. 74-8905 and amendments thereto and the author-
ization of the issuance of bonds by the Kansas development finance authority in accordance
with that statute: And provided further, That all moneys received from the issuance of any
such bonds shall be deposited in the state treasury to the credit of this fund.

Law enforcement training center improvements special revenue fund

No limit

Provided, That the university of Kansas may make expenditures from the law enforcement
training center improvements special revenue fund for a capital improvement project for
planning and construction--phase II--for law enforcement training center improvements:
Provided, however, That expenditures from this fund for such capital improvement project
shall not exceed $5,436,000: Provided further, That the above agency may transfer moneys
for fiscal year 1999 from the law enforcement training center fund to this fund for such
capital improvement project: And provided further, That all transfers of moneys for fiscal
year 1999 from the law enforcement training center fund to this fund shall be in addition
to any expenditure limitation imposed on the law enforcement training center fund for fiscal
year 1999.

Sunflower research landfill remediation fund

No limit

SBSF--Plan, construct, reconstruct and equip Hoch auditorium fund

No limit

Renovate Lewis hall--special revenue fund

No limit

Provided, That the university of Kansas may make expenditures from the renovate Lewis
hall--special revenue fund for the capital improvement project to renovate the Lewis hall
building in addition to the expenditure of other moneys appropriated therefor: Provided,
however, That expenditures from this fund for such capital improvement project shall not
exceed $5,915,000 plus all amounts required for costs of any bond issuance, costs of interest
on any bond issued or obtained for such capital improvement project and any required
reserves for payment of principal and interest on any bond: And provided further, That the
above agency may transfer moneys for fiscal year 1999 from appropriate accounts of the
housing system operations fund to this fund for such capital improvement project or for
debt service for such capital improvement project: And provided further, That such capital
improvement project is hereby approved for the university of Kansas for the purposes of
subsection (b) of K.S.A. 74-8905 and amendments thereto and the authorization of the
issuance of bonds by the Kansas development finance authority in accordance with that
statute: And provided further, That all moneys received from the issuance of any such bonds
shall be deposited in the state treasury to the credit of this fund.

Regents center principal and interest payment account KDFA D bonds,1990 fund

No limit

Energy conservation revenue bond KDFA A bonds, 1996 fund

No limit

Templin hall renovation principal and interest payment account KDFAE bonds, 1996 fund

No limit

Templin hall renovation bond proceeds project account KDFA E bonds,1996 fund

No limit

Templin hall renovation university proceeds project account KDFA Ebonds, 1996 fund

No limit

Templin hall renovation bond reserve KDFA E bonds, 1996 fund

No limit

Watkins health center addition principal and interest payment accountKDFA D bonds, 1995 fund

No limit

Watkins health center addition project account KDFA D bonds, 1995fund

No limit

Watkins health center addition university proceeds project accountKDFA D bonds, 1995 fund

No limit

Watkins health center addition cost of issuance KDFA D bonds, 1995fund

No limit

Watkins health center addition bond reserve KDFA D bonds, 1995fund

No limit

Regents R&R project KDFA K bonds, 1996 fund

No limit

Construct parking garage no. 2--special revenue fund

No limit

Provided, That the university of Kansas may make expenditures from the construct parking
garage no. 2--special revenue fund for the capital improvement project to construct a
parking garage in addition to the expenditure of other moneys appropriated therefor: Pro-
vided, however, That expenditures from this fund for such capital improvement project shall
not exceed $10,025,000 plus all amounts required for costs of any bond issuance, costs of
interest on any bond issued or obtained for such capital improvement project and any
required reserves for payment of principal and interest on any bond: Provided further, That
such capital improvement project is hereby approved for the university of Kansas for the
purposes of subsection (b) of K.S.A. 74-8905 and amendments thereto and the authorization
of the issuance of bonds by the Kansas development finance authority in accordance with
that statute: And provided further, That all moneys received from the issuance of any such
bonds shall be deposited in the state treasury to the credit of this fund.

Edwards campus facility expansion--special revenue fund

No limit

Provided, That the university of Kansas may make expenditures from the Edwards campus
facility expansion--special revenue fund for the capital improvement project to expand
facilities on the Edwards campus in addition to the expenditure of other moneys appropri-
ated therefor: Provided, however, That expenditures from this fund for such capital im-
provement project shall not exceed $13,230,000 plus all amounts required for costs of any
bond issuance, costs of interest on any bond issued or obtained for such capital improvement
project and any required reserves for payment of principal and interest on any bond: Pro-
vided further, That such capital improvement project is hereby approved for the university
of Kansas for the purposes of subsection (b) of K.S.A. 74-8905 and amendments thereto
and the authorization of the issuance of bonds by the Kansas development finance authority
in accordance with that statute: And provided further, That all moneys received from the
issuance of any such bonds shall be deposited in the state treasury to the credit of this fund.

Construct child care facility--special revenue fund

No limit

Provided, That the university of Kansas may make expenditures from the construct child
care facility--special revenue fund for the capital improvement project to construct a child
care facility in addition to the expenditure of other moneys appropriated therefor: Provided,
however, That expenditures from this fund for such capital improvement project shall not
exceed $4,470,000 plus all amounts required for costs of any bond issuance, costs of interest
on any bond issued or obtained for such capital improvement project and any required
reserves for payment of principal and interest on any bond: Provided further, That such
capital improvement project is hereby approved for the university of Kansas for the purposes
of subsection (b) of K.S.A. 74-8905 and amendments thereto and the authorization of the
issuance of bonds by the Kansas development finance authority in accordance with that
statute: And provided further, That all moneys received from the issuance of any such bonds
shall be deposited in the state treasury to the credit of this fund.

Athletic facilities enhancements--special revenue fund

No limit

Provided, That the university of Kansas may make expenditures from the athletic facilities
enhancements--special revenue fund for the capital improvement project to renovate ath-
letic facilities in addition to the expenditure of other moneys appropriated therefor: Pro-
vided, however, That expenditures from this fund for such capital improvement project shall
not exceed $32,391,210 plus all amounts required for costs of any bond issuance, costs of
interest on any bond issued or obtained for such capital improvement project and any
required reserves for payment of principal and interest on any bond: Provided further, That
such capital improvement project is hereby approved for the university of Kansas for the
purposes of subsection (b) of K.S.A. 74-8905 and amendments thereto and the authorization
of the issuance of bonds by the Kansas development finance authority in accordance with
that statute: And provided further, That all moneys received from the issuance of any such
bonds shall be deposited in the state treasury to the credit of this fund.

Budig hall completion fund

No limit

Provided, That during the fiscal year ending June 30, 1999, the director of accounts and
reports shall transfer amounts specified by the chancellor of the university of Kansas from
moneys available to the above agency in special revenue funds for fiscal year 1999, including
the general fees fund, tuition accountability fund, sponsored research overhead fund and
various moneys within the restricted fees fund, including grants, gifts, contracts and fees to
the Budig hall completion fund: Provided, however, That no expenditures shall be made
from this fund until the preliminary plans and program statement for the Budig hall com-
pletion project have been reviewed by the joint committee on state building construction.

Continuing education program building acquisition--special revenuefund

No limit

Provided, That the university of Kansas may make expenditures from the continuing edu-
cation program building acquisition--special revenue fund to acquire the real property
located at 1515 St. Andrews Drive in Lawrence, Kansas, in addition to the expenditure of
other moneys appropriated therefor: Provided, however, That expenditures from this fund
for such capital improvement project shall not exceed $2,000,000 plus all amounts required
for costs of any such bond issuance, costs of interest on any bonds issued or obtained for
such capital improvement projects and any required reserves for payment of principal and
interest on any bond: Provided further, That such capital improvement project is hereby
approved for the university of Kansas for the purposes of subsection (b) of K.S.A. 74-8905
and amendments thereto and the authorization of the issuance of bonds by the Kansas
development finance authority in accordance with that statute: And provided further, That
all moneys received from the issuance of any such bonds shall be deposited in the state
treasury to the credit of this fund.

Dole institute gift or grant fund

No limit

(b) During the fiscal year ending June 30, 1999, the university of Kansas is hereby
authorized to make expenditures to raze the jayhawker towers parking garage.

(c) During the fiscal year ending June 30, 1999, the university of Kansas is hereby
authorized to make expenditures to raze building #17 annex.

(d) On July 1, 1998, any unencumbered balance in each of the following accounts of
the Kansas educational building fund is hereby lapsed: Decommission nuclear reactor; utility
systems analysis and upgrade; construct addition to Dyche hall.

(e) In addition to the other purposes for which expenditures may be made from the
above agency from the continuing education programs account of the restricted fees fund
for the fiscal year ending June 30, 1999, as authorized by this act or by any other appro-
priation act of the 1998 regular session of the legislature, expenditures may be made by the
above agency from the continuing education programs account of the restricted fees fund
for fiscal year 1999 for the acquisition of the real property located at 1515 St. Andrews
Drive in Lawrence, Kansas.

(f) In addition to the other purposes for which expenditures may be made from the
above agency from the operating expenditures (including official hospitality) account of the
state general fund for the fiscal year ending June 30, 1999, as authorized by this act or by
any other appropriation act of the 1998 regular session of the legislature, expenditures may
be made by the above agency from the operating expenditures (including official hospitality)
account of the state general fund for fiscal year 1999 for the acquisition of Erma B.Smith
Hall which is located on the campus in Lawrence, Kansas, in accordance with a payment
schedule prescribing payments over a period of not more than 20 years under a contract
for purchase of the Erma B.Smith Hall, which contract is hereby authorized to be entered
into by the above agency and which contract and payments are subject to appropriations
therefor.

(g) In addition to the other purposes for which expenditures may be made from the
above agency from the restricted fees fund for the fiscal year ending June 30, 1999, as
authorized by this act or by any other appropriation act of the 1998 regular session of the
legislature, expenditures may be made by the above agency from the appropriate account
or accounts of the restricted fees fund for fiscal year 1999 for the acquisition of 2.31 acres
of land near DeSoto, Kansas.

(h) In addition to the other purposes for which expenditures may be made from the
state budget stabilization fund for fiscal year 1999, expenditures may be made by the above
agency from the state budget stabilization fund for fiscal year 1999 for the following specified
purpose or purposes, subject to the expenditure limitations prescribed therefor:

Dole institute of public service and public policy

$3,000,000

Provided, That all expenditures by the above agency from the state budget stabilization fund
for fiscal year 1999 for the Dole institute of public service and public policy shall be in
addition to any expenditure limitation imposed on the state budget stabilization fund for
fiscal year 1999.

Sec. 183.

UNIVERSITY OF KANSAS MEDICAL CENTER (a) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year ending June 30, 1999, all moneys now or hereafter lawfully
credited to and available in such fund or funds, except that expenditures shall not exceed
the following:

Parking facility KDFA principal and interest fund

No limit

Parking facility KDFA bond reserve fund

No limit

Parking facility KDFA surplus fund

No limit

Medical library bond and interest sinking fund

No limit

Parking facility revenue fund

No limit

Parking facility bond and interest sinking fund

No limit

Parking facility refunding interest and sinking fund

No limit

Parking facility rebate fund--KDFA F bonds--1988

No limit

Parking facility refunding repair and construction fund

No limit

Cancer center project fund KDFA J bonds--1992

No limit

Biomedical research building principal and interest sinking fund

No limit

Rehabilitation and repair projects for institutions of higher educationfund

No limit

1985 parking facility refund revenue bond--repair and constructionfund

No limit

Regents R&R project KDFA K bonds, 1996 fund

No limit

Construct and equip research building fund

No limit

Construct and equip center for health in aging fund

No limit

Provided, That the university of Kansas medical center may make expenditures from the
construct and equip center for health in aging fund for the capital improvement project to
construct the center for health in aging in addition to the expenditure of other moneys
appropriated therefor: Provided, however, That expenditures from this fund for such capital
improvement project shall not exceed $8,000,000 plus all amounts required for costs of any
bond issuance, costs of interest on any bond issued or obtained for such capital improvement
project and any required reserves for payment of principal and interest on any bond: Pro-
vided further, That the above agency may transfer moneys for fiscal year 1999 from appro-
priate accounts of the sponsored research overhead fund to this fund for such capital im-
provement project or for debt service for such capital improvement project: And provided
further, That such capital improvement project is hereby approved for the university of
Kansas medical center for the purposes of subsection (b) of K.S.A. 74-8905 and amendments
thereto and the authorization of the issuance of bonds by the Kansas development finance
authority in accordance with that statute: And provided further, That all moneys received
from the issuance of any such bonds shall be deposited in the state treasury to the credit of
this fund.

Construct and equip research support facility fund

No limit

Provided, That the university of Kansas medical center may make expenditures from the
construct and equip research support facility fund for the capital improvement project to
construct an addition to the research support facility in addition to the expenditure of other
moneys appropriated therefor: Provided, however, That expenditures from this fund for
such capital improvement project shall not exceed $3,250,000 plus all amounts required for
costs of any bond issuance, costs of interest on any bond issued or obtained for such capital
improvement project and any required reserves for payment of principal and interest on
any bond: Provided further, That the above agency may transfer moneys for fiscal year 1999
from appropriate accounts of the sponsored research overhead fund to this fund for such
capital improvement project or for debt service for such capital improvement project: And
provided further, That such capital improvement project is hereby approved for the uni-
versity of Kansas medical center 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 devel-
opment finance authority in accordance with that statute: And provided further, That all
moneys received from the issuance of any such bonds shall be deposited in the state treasury
to the credit of this fund.

(b) During the fiscal year ending June 30, 1999, the director of accounts and reports
shall transfer amounts certified by the chancellor of the university of Kansas from the spon-
sored research overhead fund to the biomedical research principal and interest sinking fund.

(c) During the fiscal year ending June 30, 1999, the university of Kansas medical center
is hereby authorized to make expenditures to raze portions of building no. 13 (the Eleanor
Taylor administration building).

(d) During the fiscal year ending June 30, 1999, the university of Kansas medical center
is hereby authorized to make expenditures to raze building no. 4 (Hinch hall).

(e) On July 1, 1998, any unencumbered balance in each of the following accounts of
the Kansas educational building fund is hereby lapsed: Ventilating and air conditioning
repairs to Bell memorial hospital--phase III.

Sec. 184.

WICHITA STATE UNIVERSITY (a) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year ending June 30, 1999, all moneys now or hereafter lawfully
credited to and available in such fund or funds, except that expenditures shall not exceed
the following:

On-campus parking construction and maintenance fund

No limit

Sec. 185.

DEPARTMENT OF HUMAN RESOURCES (a) In addition to the other purposes for which expenditures may be made by the above
agency from the employment security administration fund for fiscal year 1998, and in ad-
dition to capital improvement projects authorized by section 19 of chapter 150 of the 1997
Session Laws of Kansas, expenditures may be made by the above agency from the employ-
ment security administration fund for fiscal year 1998 for capital improvement projects:
Provided, That such expenditures from this fund for capital improvement projects shall be
made only for the following capital improvement purposes: (1) Renovating the Wichita office
into a phone center operation, and (2) creating additional parking for the main office of the
department of human resources located at 401 Topeka Ave, Topeka, Kansas: Provided fur-
ther, That expenditures from this fund for fiscal year 1998 for capital improvement projects
for such capital improvement purposes shall not exceed $244,000: And provided further,
That all expenditures from this fund for capital improvement projects for such capital im-
provement purposes shall be in addition to any expenditure limitation imposed on the em-
ployment security administration fund for fiscal year 1998.

(b) In addition to the other purposes for which expenditures may be made by the above
agency from the employment security administration fund for fiscal year 1999, expenditures
may be made by the above agency from the employment security administration fund from
moneys made available to the state under section 903 of the federal social security act, as
amended, during fiscal year 1999: Provided, That expenditures from this fund during fiscal
year 1999 of moneys made available to the state under section 903 of the federal social
security act, as amended, shall be made only for the following capital improvement purposes:
(1) For major maintenance of existing buildings used by the department of human resources
for employment security purposes; (2) for paving, landscaping and acquiring fixed equip-
ment as may be required for the use and operation of such buildings; (3) for the purposes
of purchasing real property adjoining or near the main office of the department of human
resources located at 401 Topeka Avenue, Topeka, Kansas, for parking lot expansion for such
office; or (4) for any combination of these purposes: Provided further, That expenditures
from this fund during fiscal year 1999 of moneys made available to the state under section
903 of the federal social security act, as amended, for such capital improvement purposes
shall not exceed $123,500 plus the amounts of unencumbered balances as of June 30, 1998,
for capital improvement projects approved for fiscal years prior to fiscal year 1999: And
provided further, That all expenditures from this fund for any such capital improvement
purposes or projects shall be in addition to any expenditure limitation imposed on the
employment security administration fund for fiscal year 1999.

Sec. 186.

KANSAS COMMISSION ON VETERANS AFFAIRS (a) There is appropriated for the above agency from the state institutions building fund
for the fiscal year ending June 30, 1998, for the capital improvement project as follows:

Power plant construction

$80,065

(b) There is appropriated for the above agency from the state institutions building fund
for the fiscal year ending June 30, 1999, for the capital improvement project or projects
specified as follows:

Repair and rehabilitation projects

$110,000

Halsey hall remodeling

$200,000

Provided, That no expenditures shall be made from the Halsey hall remodeling account to
construct an enclosed smoking area at Halsey hall.

(c) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year ending June 30, 1999, all moneys now or hereafter lawfully
credited to and available in such fund or funds, except that expenditures shall not exceed
the following:

Veterans' home federal construction grant fund

Provided, That all moneys received by the above agency as federal grants for the purposes
of construction and remodeling at the Kansas veterans' home, which grants are hereby
authorized to be applied for and received by the above agency, shall be deposited in the
state treasury to the credit of the Veterans' home federal construction grant fund.

Sec. 187.

ATTORNEY GENERAL--KANSAS BUREAU OF INVESTIGATION (a) There is appropriated for the above agency from the state general fund for the fiscal
year ending June 30, 1998, for the capital improvement project or projects specified as
follows:

Rehabilitation and repair--headquarters building

$25,000

(b) There is hereby appropriated for the above agency from the state general fund for
the fiscal year ending June 30, 1999, for the capital improvement project or projects spec-
ified as follows:

Rehabilitation and repair--headquarters building

$15,000

Provided, That any unencumbered balance in the rehabilitation and repair--headquarters
building account in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal
year 1999.

Debt service principal payment--headquarters building

$165,000

Sec. 188.

KANSAS HIGHWAY PATROL (a) In addition to the other purposes for which expenditures may be made from the
highway patrol training center fund for fiscal year 1999, expenditures may be made by the
above agency from the highway patrol training center fund for fiscal year 1998 to make debt
service payments for the Kansas highway patrol training center at Salina for the bonds issued
for such project pursuant to subsection (b) of section 6 of chapter 326 of the 1992 Session
Laws of Kansas.

(b) In addition to the other purposes for which expenditures may be made from the
highway patrol training center fund for fiscal year 1999, expenditures may be made by the
above agency from the highway patrol training center fund for fiscal year 1999 for the
following capital improvement project or projects, subject to the expenditure limitation
prescribed therefor:

Training center--remodeling, rehabilitation and repair projects

$50,000

Provided, That all expenditures from each such capital improvement account shall be in
addition to any expenditure limitation imposed on the highway patrol training center fund
for fiscal year 1999.

(c) In addition to other purposes for which expenditures may be made by the above
agency from the motor carrier inspection fund for fiscal year 1999, expenditures may be
made by the above agency from the motor carrier inspection fund during fiscal year 1999
for the following capital improvement project or projects, subject to the expenditure limi-
tations prescribed therefor:

Remodeling, rehabilitation and repair projects

$50,000

Replacement of scales

$91,138

Provided, That all expenditures from each such capital improvement account shall be in
addition to any expenditure limitation imposed on the motor carrier inspection fund for
fiscal year 1999.

(d) In addition to the other purposes for which expenditures may be made by the above
agency from the motor carrier inspection fund for fiscal year 1999, expenditures may be
made by the above agency from the unencumbered balance as of June 30, 1998, in each of
the following capital improvement accounts of the motor carrier inspection fund for fiscal
year 1999: Replacement of Caney Trailer: Provided, That expenditures for fiscal year 1999
from the unencumbered balance in any such account shall not exceed the unencumbered
balance in such account on June 30, 1998: Provided further, That all expenditures for fiscal
year 1999 from the unencumbered balance in any such account shall be in addition to any
expenditure limitation imposed on the motor carrier inspection fund for fiscal year 1999.

Sec. 189.

ADJUTANT GENERAL (a) There is appropriated for the above agency from the state general fund for the fiscal
year ending June 30, 1999, for the capital improvement project or projects specified as
follows:

Armory roofing projects

$589,790

(b) Any unencumbered balance in excess of $100 as of June 30, 1998, in each of the
following capital improvement accounts of the state general fund is hereby reappropriated
for fiscal year 1999: Rehabilitation and repair projects.

(c) In addition to the other purposes for which expenditures may be made from the
state budget stabilization fund for fiscal year 1999, expenditures may be made by the above
agency from the state budget stabilization fund for fiscal year 1999 for the following specified
purpose or purposes, subject to the expenditure limitations prescribed therefor:

Iola armory additions

$333,848

Provided, That all expenditures by the above agency from the state budget stabilization fund
for fiscal year 1999 for the Iola armory addition shall be in addition to any expenditure
limitation imposed on the state budget stabilization fund for fiscal year 1999: Provided,
however, That no expenditures may be made from the Iola armory addition account of the
state budget stabilization fund until the adjutant general certifies to the director of accounts
and reports that (1) an amount of not less than $1,569,243 has been received from the
federal government specifically for the construction of the Iola armory addition and (2) an
amount of not less than $209,232 has been received from local government sources specif-
ically for the construction of the Iola armory addition.

Sec. 190.

DEPARTMENT OF WILDLIFE AND PARKS (a) There is appropriated for the above agency from the state general fund for the fiscal
year ending June 30, 1999, for the capital improvement project or projects specified as
follows:

Handicapped accessibility renovation

$28,037

Provided, That any unencumbered balance in the handicapped accessibility renovation ac-
count in excess of $100 as of June 30, 1998, is hereby reappropriated for fiscal year 1999.

Any unencumbered balance in excess of $100 as of June 30, 1998, in each of the following
capital improvement accounts of the state general fund is hereby reappropriated for fiscal
year 1999: Prairie Spirit rails-to-trails project; flood damage repair; rehabilitation and re-
pair.

Matching grant for development of wetlands project at Milfordreservoir

$361,512

Provided, That expenditures from this account may be made by the secretary of wildlife and
parks upon verification by the chairperson of WILDSCAPE that federal funds are available
from the U.S. army corps of engineers for development of the Milford wetlands: Provided,
however, That funds provided by the Kansas department of wildlife and parks to WILD-
SCAPE shall not be used to finance the administrative costs of WILDSCAPE.

(b) There is appropriated for the above agency from the following special revenue fund
or funds for the fiscal year ending June 30, 1999, all moneys now or hereafter lawfully
credited to and available in such fund or funds, except that expenditures shall not exceed
the following:

Department access road fund

No limit

Bridge maintenance fund

No limit

Migratory waterfowl propagation and protection fund

$100,000

Renovation of Cheyenne bottoms--federal fund

No limit

Bureau of reclamation federal flood aid fund

No limit

Cheyenne bottoms project gift fund

No limit

Rails-to-trails federal fund

No limit

Economic development initiatives grant fund

No limit

Provided, That, in addition to the other purposes for which expenditures may be made by
the above agency from the economic development initiatives grant fund for fiscal year 1999,
expenditures may be made by the above agency for fiscal year 1999 from the unencumbered
balance as of June 30, 1998, in each of the following capital improvement accounts of the
economic development initiatives grant fund: Prairie Spirit rails-to-trails project: Provided,
however, That expenditures from the unencumbered balance of any such account shall not
exceed the unencumbered balance in such account on June 30, 1998.

(c) On July 1, 1998, or as soon thereafter as moneys are available, the director of ac-
counts and reports shall transfer $1,350,000 from the state highway fund of the department
of transportation to the department access road fund of the department of wildlife and
parks.

(d) On July 1, 1998, or as soon thereafter as moneys are available, the director of ac-
counts and reports shall transfer $200,000 from the state highway fund of the department
of transportation to the bridge maintenance fund of the department of wildlife and parks.

(e) In addition to the other purposes for which expenditures may be made by the above
agency from the migratory waterfowl propagation and protection fund for fiscal year 1999,
expenditures may be made by the above agency for fiscal year 1999 from the unencumbered
balance as of June 30, 1998, in each existing capital improvement account of the migratory
waterfowl propagation and protection fund: Provided, That all expenditures from the unen-
cumbered balance of any such account shall not exceed the amount of the unencumbered
balance in such account on June 30, 1998: Provided further, That all expenditures from the
unencumbered balance of any such account shall be in addition to any expenditure limitation
imposed on the migratory waterfowl propagation and protection fund for fiscal year 1999.

(f) In addition to the other purposes for which expenditures may be made by the above
agency from the boating fee fund for fiscal year 1999, expenditures may be made by the
above agency for fiscal year 1999 from the unencumbered balance as of June 30, 1998, in
each existing capital improvement account of the boating fee fund: Provided, That expend-
itures from the unencumbered balance of any such existing capital improvement account
shall not exceed the amount of the unencumbered balance in such account on June 30,
1998: Provided further, That all expenditures from the unencumbered balance of any such
account shall be in addition to any expenditure limitation imposed on the boating fee fund
for fiscal year 1999 and shall be in addition to any other expenditure limitation imposed on
any such account of the boating fee fund for fiscal year 1999.

(g) In addition to the other purposes for which expenditures may be made from the
state budget stabilization fund for fiscal year 1999, expenditures may be made by the above
agency from the state budget stabilization fund for fiscal year 1999 for the following specified
purpose or purposes, subject to the expenditure limitations prescribed therefor:

State budget stabilization fund ADA accessibility

$71,963

Comprehensive capital improvements for state parks

$10,000,000

Provided, That all expenditures by the above agency from the state budget stabilization fund
for fiscal year 1999 for the state budget stabilization fund ADA accessibility projects and
the comprehensive capital improvements for state parks shall be in addition to any expend-
iture limitation imposed on the state budget stabilization fund for fiscal year 1999.

(h) In addition to the other purposes for which expenditures may be made by the above
agency from the state budget stabilization fund for fiscal year 1999, expenditures may be
made by the above agency for fiscal year 1999 from the unencumbered balance as of June
30, 1998, in each existing capital improvement account of the above agency in the state
budget stabilization fund: Provided, That expenditures from the unencumbered balance of
any such existing capital improvement account shall not exceed the amount of the unen-
cumbered balance in such account on June 30, 1998: Provided further, That all expenditures
from the unencumbered balance of any such account shall be in addition to any expenditure
limitation imposed on the state budget stabilization fund for fiscal year 1999.

(i) In addition to the other purposes for which expenditures may be made by the above
agency from the wildlife fee fund for fiscal year 1999, expenditures may be made by the
above agency from the following capital improvement account or accounts of the wildlife
fee fund during fiscal year 1999 for the following capital improvement project or projects,
subject to the expenditure limitations prescribed therefor:

Wildlife fee fund ADA renovation fishery enhancements

$200,000

Wildlife fee fund land acquisition

$250,000

Wildlife fee fund rehabilitation and repair

$250,000

Federally mandated boating access

$850,000

Provided, That all expenditures from each such capital improvement account shall be in
addition to any expenditure limitation imposed on the wildlife fee fund for fiscal year 1999.

(j) In addition to the other purposes for which expenditures may be made by the above
agency from the wildlife fee fund for fiscal year 1999, expenditures may be made by the
above agency for fiscal year 1999 from the unencumbered balance as of June 30, 1998, in
each existing capital improvement account of the wildlife fee fund: Provided, That expend-
itures from the unencumbered balance of any such existing capital improvement account
shall not exceed the amount of the unencumbered balance in such account on June 30,
1998: Provided further, That all expenditures from the unencumbered balance of any such
account shall be in addition to any expenditure limitation imposed on the wildlife fee fund
for fiscal year 1999: And provided further, That, on July 1, 1998, any unencumbered balance
as of June 30, 1998, in each of the following capital improvement accounts of the wildlife
fee fund is hereby lapsed: Repair outlet--Brown state fishing lake; expand Wichita urban
fishing waters.

(k) In addition to the other purposes for which expenditures may be made by the above
agency from the wildlife conservation fund for fiscal year 1999, expenditures may be made
by the above agency for fiscal year 1999 from the unencumbered balance as of June 30,
1998, in each existing capital improvement account of the wildlife conservation fund: Pro-
vided, That expenditures from the unencumbered balance of any such existing capital im-
provement account shall not exceed the amount of the unencumbered balance in such
account on June 30, 1998: Provided further, That all expenditures from the unencumbered
balance of any such account shall be in addition to any expenditure limitation imposed on
the wildlife conservation fund for fiscal year 1999 and shall be in addition to any other
expenditure limitation imposed on any such account of the wildlife conservation fund for
fiscal year 1999.

(l) In addition to the other purposes for which expenditures may be made by the above
agency from the parks fee fund for fiscal year 1999, expenditures may be made by the above
agency for fiscal year 1999 from the unencumbered balance as of June 30, 1998, in each
existing capital improvement account of the parks fee fund: Provided, That expenditures
from the unencumbered balance of any such existing capital improvement account shall not
exceed the amount of the unencumbered balance in such account on June 30, 1998: Pro-
vided further, That all expenditures from the unencumbered balance of any such account
shall be in addition to any expenditure limitation imposed on the parks fee fund for fiscal
year 1999.

(m) In addition to the other purposes for which expenditures may be made by the above
agency from the nongame wildlife improvement fund for fiscal year 1999, expenditures may
be made by the above agency for fiscal year 1999 from the unencumbered balance as of
June 30, 1998, in each existing capital improvement account of the nongame wildlife im-
provement fund: Provided, That expenditures from the unencumbered balance of any such
existing capital improvement account shall not exceed the amount of the unencumbered
balance in such account on June 30, 1998: Provided further, That all expenditures from the
unencumbered balance of any such account shall be in addition to any expenditure limitation
imposed on the nongame wildlife improvement fund for fiscal year 1999 and shall be in
addition to any other expenditure limitation imposed on any such account of the nongame
wildlife improvement fund for fiscal year 1999.

(n) During the fiscal year ending June 30, 1999, any expenditures by the department
of wildlife and parks from any moneys appropriated for fiscal year 1999, for wetlands ac-
quisition shall be for the acquisition of existing wetlands that are adjacent to state-owned
wetlands in Barton county or McPherson county: Provided, That, as used in this subsection,
wetlands are defined as areas that have a predominance of hydric soils and that are inundated
or saturated by surface or groundwater at a frequency and duration sufficient to support,
and under normal circumstances do support, a prevalence of hydrophytic vegetation typically
adapted for life in saturated soil conditions.

(o) During the fiscal year ending June 30, 1999, any expenditures by the department of
wildlife and parks from any moneys appropriated for fiscal year 1999, for land acquisition
related to the playa lakes project shall be for lands which are adjacent to playa lakes prop-
erties that are already owned by the state: Provided, That no pumping of groundwater may
be done on any such newly acquired properties.

Sec. 191.

JUVENILE JUSTICE AUTHORITY (a) There is appropriated for the above agency from the state institutions building fund
for the fiscal year ending June 30, 1999, for the capital improvement project or projects
specified as follows:

Capital improvements--rehabilitation, remodeling, renovation and repairof juvenile correctional facilities

$1,147,075

Provided, That the commissioner of juvenile justice is hereby authorized to transfer moneys
during fiscal year 1999 from the capital improvements--rehabilitation, remodeling, reno-
vation and repair of juvenile correctional facilities account of the state institutions building
fund to an account or accounts of the state institutions building fund of any institution or
facility under the jurisdiction of the commissioner of juvenile justice to be expended during
fiscal year 1999 by the institution or facility for capital improvement projects approved by
the commissioner of juvenile justice.

Sec. 192. Appeals to exceed position limitations. The limitations imposed by this act on
the number of full-time and regular part-time positions equated to full-time, excluding
seasonal and temporary positions, paid from appropriations for the fiscal year ending June
30, 1999, made in this act or in any other appropriation act of the 1998 regular session of
the legislature may be exceeded upon approval of the state finance council.

Sec. 193. Appeals to exceed limitations. Upon written application to the governor and
approval of the state finance council, expenditures from special revenue funds may exceed
the amounts specified in this act.

Sec. 194. Savings. Any unencumbered balance as of June 30, 1998, in any special rev-
enue fund, or account thereof, which is not otherwise specifically appropriated or limited
by this or other appropriation act of the 1998 regular session of the legislature, is hereby
appropriated for the fiscal year ending June 30, 1999, for the same use and purpose as the
same was heretofore appropriated.

Sec. 195. Federal grants. Each federal grant or other federal receipt which is received
by a state agency named in this act and which is not otherwise appropriated to that state
agency by this or other appropriation act of the 1998 regular session of the legislature, is
hereby appropriated for the fiscal year ending June 30, 1999, for that state agency for the
purpose set forth in such federal grant or receipt, except that no expenditure shall be made
from and no obligation shall be incurred against any such federal grant or other federal
receipt, which has not been previously appropriated or reappropriated or approved for
expenditure by the governor, until the governor has authorized the state agency to make
expenditures therefrom.

Sec. 196. Any transfers of money during the fiscal year ending June 30, 1999, from any
special revenue fund of any state agency named in this act to the audit services fund of the
division of post audit under K.S.A. 46-1121 and amendments thereto shall be in addition to
any expenditure limitation imposed on any such fund for the fiscal year ending June 30,
1999.

Sec. 197. Any correctional institutions building fund appropriation heretofore appro-
priated to any state agency named in this or other appropriation act of the 1998 regular
session of the legislature, and having an unencumbered balance as of June 30, 1998, in
excess of $100 is hereby reappropriated for the fiscal year ending June 30, 1999, for the
same uses and purposes as originally appropriated unless specific provision is made for
lapsing such appropriation.

Sec. 198. Any Kansas educational building fund appropriation heretofore appropriated
to any institution named in this or other appropriation act of the 1998 regular session of the
legislature and having an unencumbered balance as of June 30, 1998, in excess of $100 is
hereby reappropriated for the fiscal year ending June 30, 1999, for the same use and purpose
as originally appropriated, unless specific provision is made for lapsing such appropriation.

Sec. 199. Any state institutions building fund appropriation heretofore appropriated to
any state agency named in this or other appropriation act of the 1998 regular session of the
legislature and having an unencumbered balance as of June 30, 1998, in excess of $100 is
hereby reappropriated for the fiscal year ending June 30, 1999, for the same use and purpose
as originally appropriated, unless specific provision is made for lapsing such appropriation.

Sec. 200. Any Kansas special capital improvements fund appropriation heretofore ap-
propriated to any state agency named in this or other appropriation act of the 1998 regular
session of the legislature, and having an unencumbered balance as of June 30, 1998, in
excess of $100 is hereby reappropriated for the fiscal year ending June 30, 1999, for the
same use and purpose as originally appropriated unless specific provision is made for lapsing
such appropriation.

Sec. 201. On the effective date of this act, K.S.A. 75-3730a and 75-3730b are hereby
repealed.

Sec. 202. On July 1, 1998, K.S.A. 79-2964, 79-3425i and 79-34,147 and section 23 of
chapter 123 of the 1997 Session Laws of Kansas are hereby repealed.'';

And by renumbering sections accordingly;

In the title, by striking all in lines 12 through 15 and inserting in lieu thereof the following:

``AN ACT making and concerning appropriations for the fiscal years ending June 30, 1998,
and June 30, 1999; authorizing certain transfers, capital improvement projects and fees,
imposing certain restrictions and limitations and directing or authorizing certain receipts,
disbursements and acts incidental to the foregoing; amending K.S.A. 79-2964, 79-3425i
and 79-34,147 and repealing the existing sections; also repealing K.S.A. 75-3730a and
75-3730b and section 23 of chapter 123 of the 1997 Session Laws of Kansas.'';

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

Phil Kline

Mike Farmer

Henry M. Helgerson, Jr.

Conferees on part of House

Dave Kerr

Alicia Salisbury

Marge Petty

Conferees on part of Senate

On motion of Rep. Phil Kline, the conference committee report on SB 495 was adopted.

On roll call, the vote was: Yeas 85; Nays 38; Present but not voting: 0; Absent or not
voting: 1.

Yeas: Allen, Aurand, Ballard, Ballou, Beggs, Boston, Campbell, Carmody, Cook, Cox,
Crow, Dillon, Dreher, Faber, Farmer, Findley, Flaharty, Flora, Flower, Franklin, Freeborn,
Geringer, Gilbert, Gilmore, Grant, Gregory, Haley, Hayzlett, Helgerson, Henderson,
Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, Johnson, John-
ston, Kejr, Phil Kline, Kuether, Lane, Larkin, M. Long, Mason, Mays, McClure, McCreary,
McKechnie, McKinney, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Pauls, E.
Peterson, J. Peterson, Phelps, Pottorff, Powers, Ray, Reardon, Ruff, Samuelson, Sawyer,
Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Stone, Swenson,
Thimesch, Toelkes, Vickrey, Weber, Weiland, Wells.

Nays: Adkins, Alldritt, Benlon, Burroughs, Correll, Dahl, Dean, Edmonds, Empson,
Feuerborn, Garner, Glasscock, Kirk, Klein, Phill Kline, Krehbiel, Landwehr, P. Long, Ma-
yans, Minor, Mollenkamp, Osborne, Packer, Palmer, Powell, Presta, Reinhardt, Spangler,
Storm, Tanner, Tomlinson, Toplikar, Vining, Wagle, Welshimer, Wempe, Wilk, Wilson.

Present but not voting: None.

Absent or not voting: Compton.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2724, 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 3, in line 11, preceding ``coronal'' by inserting ``(A)''; in line 12, preceding the
period, by inserting: ``and (B) coronal scale teeth above the gum line as long as such pro-
cedure is not performed on a patient who has undergone local or general anesthesia at the
time of the procedure, is undertaken by a nonlicensed person who has successfully com-
pleted necessary training for performing such dental procedure in a course of study approved
by the board, which course of study is consistent with American dental association accred-
itation standards and includes but is not limited to adequate instruction on scaling the teeth
and recognition of periodontal disease, is undertaken by a person who has met the experi-
ence requirements for performing such procedures as established by the board and such
procedure is performed prior to July 1, 2001. The provisions of this part (B) of subsection
(h)(5) shall expire on July 1, 2001'';

On page 4, in line 32, by inserting a quote mark preceding ``Direct'';

On page 6, in line 11, by striking ``and'' and inserting a comma; in line 12, after ``regents''
by inserting ``and the Kansas dental board'';

On page 10, in line 20, after ``(c)'' by inserting: ``Upon the effective date of this act, in
order to expand the membership to the prescribed six dentists and two dental hygienists,
the governor shall appoint three additional dentists and one additional hygienist to the board
in the manner described in this section. Of the three new dental members, one shall serve
until April 30, 2000, one shall serve until April 30, 2001 and one shall serve until April 30,
2002, as designated by the governor. Thereafter, all terms shall be four-year terms beginning
May 1 of the appointment year and expiring April 30 four years later. When the terms of
the existing dentist members which expire May 1, 2000, and May 1, 2001 conclude, then
successors' shall be appointed for four year terms beginning May 1 and expiring April 30
four years later. The additional dental hygienist appointed upon the effective date of this
act shall serve until April 30, 2002, and thereafter the successor shall serve a four-year term
beginning May 1 and expiring April 30 four years later.'';

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

Sandy Praeger

Janice Hardenburger

Chris Steineger

Conferees on part of Senate

Carols Mayans

Ted Powell

Jerry Henry

Conferees on part of House

On motion of Rep. Mayans to adopt the conference committee report on HB 2724, Rep.
Reinhardt offered a substitute motion to not adopt the conference committee report and
asked that a new conference committee be appointed. The substitute motion did not prevail.

The question then reverted back to the original motion of Rep. Mayans and the confer-
ence committee report was adopted.

On roll call, the vote was: Yeas 93; Nays 29; Present but not voting: 0; Absent or not
voting: 2.

Yeas: Adkins, Alldritt, Allen, Ballard, Ballou, Beggs, Boston, Campbell, Carmody, Cook,
Correll, Crow, Dahl, Dillon, Dreher, Edmonds, Empson, Farmer, Findley, Flora, Franklin,
Freeborn, Garner, Geringer, Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett,
Helgerson, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Kejr, Kirk, Phil Kline,
Phill Kline, Kuether, Landwehr, M. Long, P. Long, Mason, Mayans, McClure, McCreary,
McKechnie, McKinney, Minor, Myers, Neufeld, Nichols, O'Connor, O'Neal, Osborne,
Packer, Palmer, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Presta, Ray, Reinhardt,
Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver,
Shultz, Sloan, Stone, Tanner, Toelkes, Toplikar, Vining, Wagle, Weber, Weiland, Wells,
Welshimer, Wempe, Wilk, Wilson.

Nays: Aurand, Benlon, Burroughs, Cox, Dean, Faber, Feuerborn, Flaharty, Flower, Hen-
derson, Hutchins, Johnson, Johnston, Klein, Krehbiel, Lane, Larkin, Mays, Mollenkamp,
Morrison, Pauls, Powers, Reardon, Spangler, Storm, Swenson, Thimesch, Tomlinson, Vick-
rey.

Present but not voting: None.

Absent or not voting: Compton, Jennison.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2806, submits the following report:

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

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

Tim Emert

Keith Schraad

Paul Feleciano, Jr.

Conferees on part of Senate

Kent Glasscock

Gwen Welshimer

Ted Powers

Conferees on part of House

On motion of Rep. Glasscock, the conference committee report on HB 2806 was
adopted.

On roll call, the vote was: Yeas 115; Nays 7; Present but not voting: 0; Absent or not
voting: 2.

Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Beggs, Benlon, Boston, Burroughs, Camp-
bell, Carmody, Cook, Correll, Cox, Crow, Dean, Dillon, Dreher, Edmonds, Empson, Far-
mer, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Freeborn, Garner, Geringer,
Gilbert, Gilmore, Glasscock, Grant, Haley, Hayzlett, Helgerson, Henderson, Henry,
Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Johnson, Johnston, Kejr, Kirk,
Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, M. Long, Ma-
yans, Mays, McClure, McCreary, McKechnie, McKinney, Minor, Mollenkamp, Morrison,
Myers, Neufeld, Nichols, O'Neal, Osborne, Packer, Palmer, Pauls, E. Peterson, J. Peterson,
Phelps, Pottorff, Powell, Powers, Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer,
Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Spangler, Stone,
Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle,
Weber, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson.

Nays: Ballou, Dahl, Faber, Gregory, P. Long, Mason, O'Connor.

Present but not voting: None.

Absent or not voting: Compton, Jennison.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to Substitute for SB 675, submits the following report:

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

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

Barbara P. Allen

Peggy Palmer

Conferees on part of House

Pat Ranson

Nick Jordan

Conferees on part of Senate

On motion of Rep. Allen, the conference committee report on Sub. SB 675 was adopted.

Speaker Shallenburger thereupon appointed Reps. Allen, Palmer and Spangler as second
conferees on the part of the House.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 482, submits the following report:

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

On page 10, in line 42, by striking ``or''; in line 43, before ``21-3442'' by inserting ``and
amendments thereto; (17) involuntary manslaughter while driving under the influence of
alcohol or drugs as defined in K.S.A. ``; also in line 43, by striking ``(17)'' and inserting ``(18)'';

On page 15, in line 19, after ``21-3404,'' by inserting ``21-3439,'';

On page 16, in line 40, by striking ``criminal justice agency,'';

On page 17, by striking all in lines 26 through 43;

On page 18, by striking all in lines 1 through 13;

And by renumbering sections accordingly;

Also on page 18, in line 14, by striking ``8-1,129,'';

On page 1, in the title, in line 14, by striking ``crimes, criminal procedure and punish-
ment;''; in line 15, by striking ``relating to''; also in line 15, before ``diversion'' by inserting
``relating to''; in line 16, by striking ``penalty for unlawful parking''; in line 17, by striking
``in accessible parking space in certain circumstances;''; in line 18, by striking ``8-1,129,'';

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

Tim Carmody

Terry Presta

Jim D. Garner

Conferees on part of House

Tim Emert

Edward W. Pugh

Greta Goodwin

Conferees on part of Senate

On motion of Rep. Carmody, the conference committee report on SB 482 was adopted.

On roll call, the vote was: Yeas 111; Nays 12; Present but not voting: 0; Absent or not
voting: 1.

Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Burroughs,
Campbell, Carmody, Cook, Correll, Cox, Crow, Dahl, Dillon, Dreher, Edmonds, Empson,
Faber, Farmer, Feuerborn, Findley, Flaharty, Flower, Franklin, Freeborn, Garner, Ger-
inger, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett, Henderson, Henry, Holmes,
Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, Johnson, Johnston, Kejr, Kirk,
Klein, Phil Kline, Phill Kline, Kuether, Landwehr, Lane, M. Long, P. Long, Mason, Mayans,
Mays, McClure, McCreary, McKinney, Minor, Mollenkamp, Morrison, Myers, Neufeld,
Nichols, O'Connor, O'Neal, Osborne, Packer, Palmer, Pauls, J. Peterson, Pottorff, Powell,
Powers, Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson, Schwartz, Shallenburger, Sharp,
Shore, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Toelkes,
Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Wempe, Wilk, Wilson.

Nays: Dean, Flora, Gilbert, Helgerson, Krehbiel, Larkin, McKechnie, E. Peterson,
Phelps, Sawyer, Thimesch, Welshimer.

Present but not voting: None.

Absent or not voting: Compton.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 536, 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 39, in line 18, by striking ``otherwise authorized by law to diagnose mental
disorders'' and inserting ``designated by the head of a participating mental health center'';

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

Tim Carmody

Terry Presta

Jim D. Garner

Conferees on part of House

Tim Emert

Edward W. Pugh

Greta Goodwin

Conferees on part of Senate

On motion of Rep. Carmody, the conference committee report on SB 536 was adopted.

On roll call, the vote was: Yeas 120; Nays 3; Present but not voting: 0; Absent or not
voting: 1.

Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Burroughs,
Campbell, Carmody, Cook, Correll, Cox, Crow, Dahl, Dean, Dillon, Dreher, Edmonds,
Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Freeborn,
Garner, Geringer, Gilbert, Gilmore, Glasscock, Grant, Gregory, Hayzlett, Helgerson, Hen-
derson, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, John-
son, Johnston, Kejr, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane,
Larkin, M. Long, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie, Mc-
Kinney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Os-
borne, Packer, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers,
Presta, Ray, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore,
Showalter, Shriver, Shultz, Sloan, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tom-
linson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk,
Wilson.

Nays: Haley, Reardon, Spangler.

Present but not voting: None.

Absent or not voting: Compton.

The House stood at ease until the sound of the gavel.

______ Speaker Shallenburger called the House to order.

MESSAGE FROM THE SENATE

[cm The Senate adopts the conference committee report to agree to disagree on SB 11 ,
requests a new conference committee, and has appointed Senators Kerr, Morris and Petty
as third conferees on the part of Senate.

The Senate nonconcurs in House amendments to SB 44, requests a conference and has
appointed Senators Langworthy, Corbin and Lee as conferees on the part of the Senate.

The Senate nonconcurs in House amendments to H. Sub. for Sub. SB 424, requests a
conference and has appointed Senators Praeger, Steffes and Feleciano as conferees on the
part of the Senate.

INTRODUCTION OF ORIGINAL MOTIONS

On motion of Rep. Jennison, the House acceded to the request of the Senate for a
conference on SB 44.

Speaker Shallenburger thereupon appointed Reps. Phill Kline, Powell and Larkin as con-
ferees on the part of the House.

On motion of Rep. Jennison, the House acceded to the request of the Senate for a
conference on H. Sub. for Sub. SB 424.

Speaker Shallenburger thereupon appointed Reps. Neufeld, Landwehr and Helgerson as
conferees on the part of the House.

The House stood in recess until 5:30 p.m.

______ Evening Session
The House met pursuant to recess with Speaker Shallenburger in the chair.

MESSAGE FROM THE SENATE

The Senate adopts conference committee report on SB 482.

The Senate adopts conference committee report on SB 495.

The Senate adopts conference committee report on SB 536.

The Senate adopts the conference committee report to agree to disagree on Sub. SB
675, requests a new conference committee, and has appointed Senators Ranson, Jordan
and Barone as second conferees on the part of Senate.

The Senate adopts conference committee report on HB 2820.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2820, 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 16, in line 29, following the period, by inserting: ``If a parent has been convicted
of capital murder, K.S.A. 21-3439 and amendments thereto or murder in the first degree,
K.S.A. 21-3401 and amendments thereto as provided in subsection (a)(7), the burden of
proof is on the parent to rebut the presumption by clear and convincing evidence.'';

On page 17, by striking all in lines 41, 42 and 43;

By striking all of page 18;

On page 19, by striking all in lines 1 through 42 and inserting the following:

``New Sec. 11. (a) Except as provided in subsection (d), a parent entitled to the custody
of a child pursuant to K.S.A. 38-1121, and amendments thereto, shall give written notice to
the other parent who has been granted custodial or visitation rights pursuant to subsection
(d) of K.S.A. 38-1121, and amendments thereto, not less than 21 days prior to changing the
residence of the child to a place outside this state or removing the child from this state for
a period of time exceeding 90 days. Such notice shall be sent by restricted mail, return
receipt requested, to the last known address of the other parent.

(b) Failure to give notice as required by subsection (a) is an indirect civil contempt
punishable as provided by law. In addition, the court may assess, against the parent required
to give notice, reasonable attorney fees and any other expenses incurred by the other parent
by reason of the failure to give notice.

(c) A change of the residence of a child to another state or removal of a child from this
state for a period of time exceeding 90 days may be considered a material change of cir-
cumstances which justifies modification of a prior order of child support or custody.

(d) A parent entitled to the custody of a child pursuant to K.S.A. 38-1121, and amend-
ments thereto, shall not be required to give the notice required by this section to the other
parent when the other parent has been convicted of any crime specified in article 34, 35 or
36 of chapter 21 of the Kansas Statutes Annotated, and amendments thereto, in which the
child is the victim of such crime.

(e) This section shall be part of and supplemental to the Kansas parentage act.'';

On page 1, in the title, in line 16, by striking ``post-termination''; by striking all in line 17;
in line 18, by striking all before ``amending'' and inserting ``relating to notice of change in
child's residence;'';

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

Tim Emert

Edward W. Pugh

Greta Goodwin

Conferees on part of Senate

Tim Carmody

Jim Morrison

Jim D. Garner

Conferees on part of House

On motion of Rep. Carmody, the conference committee report on HB 2820 was adopted.

On roll call, the vote was: Yeas 121; Nays 0; Present but not voting: 0; Absent or not
voting: 3.

Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Burroughs,
Campbell, Carmody, Cook, Correll, Cox, Crow, Dahl, Dean, Dillon, Dreher, Edmonds,
Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Freeborn,
Garner, Geringer, Gilbert, Gilmore, Glasscock, Grant, Gregory, Hayzlett, Helgerson, Hen-
derson, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, John-
son, Johnston, Kejr, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane,
Larkin, M. Long, P. Long, Mayans, Mays, McClure, McCreary, McKechnie, McKinney,
Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Osborne,
Packer, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta,
Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore,
Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch,
Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer,
Wempe, Wilk, Wilson.

Nays: None.

Present but not voting: None.

Absent or not voting: Compton, Haley, Mason.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 424, 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 amended by the House on Final Action, as
follows:

By striking all of subsection (c) of section 1 and inserting:

``(c) The secretary is authorized to contract with entities authorized to transact health
insurance business in this state to implement the health insurance coverage plan pursuant
to subsection (a) providing for several plan options to enrollees which are coordinated with
federal and state child health care programs, except that when contracting to provide man-
aged mental health care services the secretary shall assure that contracted entities demon-
strate the ability to provide a full array of mental health services in accordance with the
early and periodic screening, diagnosis and treatment plan. The secretary shall not develop
a request for proposal process which excludes community mental health centers from the
opportunity to bid for managed mental health care services.'';

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

Melvin Neufeld

Brenda K. Landwehr

Henry M. Helgerson, Jr.

Conferees on part of House

Sandy Praeger

Don Steffes

Paul Feleciano, Jr.

Conferees on part of Senate

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

On roll call, the vote was: Yeas 121; Nays 0; Present but not voting: 0; Absent or not
voting: 3.

Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Burroughs,
Campbell, Carmody, Cook, Correll, Cox, Crow, Dahl, Dean, Dillon, Dreher, Edmonds,
Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Freeborn,
Garner, Geringer, Gilbert, Gilmore, Glasscock, Grant, Gregory, Hayzlett, Helgerson, Hen-
derson, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, John-
son, Johnston, Kejr, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane,
Larkin, M. Long, P. Long, Mayans, Mays, McClure, McCreary, McKechnie, McKinney,
Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Osborne,
Packer, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta,
Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore,
Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch,
Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer,
Wempe, Wilk, Wilson.

Nays: None.

Present but not voting: None.

Absent or not voting: Compton, Haley, Mason.

MOTIONS TO CONCUR AND NONCONCUR

On motion of Rep. Boston, the House nonconcurred in Senate amendments to HB 2510
and asked for a conference.

Speaker Shallenburger thereupon appointed Reps. Boston, Tanner and Gilbert as con-
ferees on the part of the House.

REPORT OF STANDING COMMITTEE

Your Committee on Calendar and Printing recommends on requests for resolutions
and certificates that

Request No. 180, by Representative Dahl, honoring Andrew and Wilma Schmidt on 50
years of marriage;

Request No. 181, by Representative Dahl, honoring Herbert and Doris Guhr on 50
years of marriage;

Request No. 182, by Representative Wagle, congratulating David L. Dvorak on achiev-
ing Eagle Scout;

Request No. 183, by Representative Dahl, honoring Kenneth and Ruby Schroeder on
50 years of marriage;

Request No. 184, by Representative Dahl, honoring Harley and Alice Koop on 50 years
of marriage;

Request No. 185, by Representative Benlon, honoring Jonathan Ronald Wear for achiev-
ing Eagle Scout;

Request No. 186, by Representative Johnson, commending Blythe Ridenour for dedi-
cation and hard work as intern for Rep. Johnson during the 1998 session;

Request No. 187, by Representative Schwartz, commending Brenden Wirth for dedi-
cation and hard work as intern for Rep. Schwartz during the 1998 session;

Request No. 188, by Representatives Gilmore and Tanner, congratulating the Bower-
man Family, named 1998 Baker University Family of the Year;

Request No. 189, by Representatives Packer and Shallenburger, congratulating Adam
Chmelka for receiving a perfect score on the ACT;

Request No. 190, by Representatives Garner and Correll, congratulating Kristi Garber,
named 1998 Kansas Outstanding High School Vocational Student and a finalist for All Amer-
ican Vocational Student;

Request No. 191, by Representative Schwartz, honoring Tom Beninga for 50 years of
service as Madison Township treasurer;

Request No. 192, by Representative Pauls, honoring ALTRUSA International, District
Eight Conference for the members' literacy projects and other community service projects;

Request No. 193, by Representative Reardon, congratulating Wyandotte High School
Boys' Basketball Team for winning the Kansas State 5A Championship;

Request No. 194, by Representative Spangler, recognizing Alma L. Hackathorn on her
100th birthday;

Request No. 195, by Representative Empson, congratulating Alyson Addington for re-
ceiving the Girl Scout Gold Award;

Request No. 196, by Representative Empson, congratulating Erin Sanders for receiving
the Girl Scout Gold Award;

Request No. 197, by Representative Compton, congratulating Christina Ogle for her
selection to the Governor's Scholars Award Program;

Request No. 198, by Representative Spangler, recognizing the Red Devil BBQ as the
Kansas State BBQ Champion;

Request No. 199, by Representative Spangler, recognizing Amino Brothers Construction
Company for their contribution to the Development of the Interstate Highway System;

Request No. 200, by Representative Horst, congratulating Grant William Hay for achiev-
ing Eagle Scout;

Request No. 201, by Representative Horst, congratulating Gen Gillespie on winning the
1998 Kansas Spelling Bee Championship;

Request No. 202, by Representative Horst, congratulating Thomas James Hatfield for
achieving Eagle Scout;

Request No. 203, by Representative Horst, congratulating Stephen F. Patrick for achiev-
ing Eagle Scout;

Request No. 204, by Representative Henderson, congratulating Wyandotte High School
Boys' Basketball Team and Coaches on winning the Kansas Class 5A State Championship;

Request No. 205, by Representative Henderson, congratulating Sumner Academy Boys'
Basketball Team and Coaches on winning the Kansas Class 4A State Championship;

Request No. 206, by Representative Huff, commending Scott Benolkin on receiving a
perfect score on the ACT;

Request No. 207, by Representative Benlon, congratulating the Shawnee Mission North-
west CCC Class for their endless commitment in volunteering in the community;

Request No. 208, by Representative Pottorff, recognizing Anna Perleberg on receiving
aperfect score on the ACT;

Request No. 209, by Representative Pottorff, recognizing Katie Mitchell on receiving a
perfect score on the ACT;

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. Jennison, the committee report was adopted.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 535, 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 18, by striking all in lines 9 through 43;

On page 19, by striking all in lines 1 through 5 and inserting in lieu thereof the following:

``New Sec. 18. (a) An automated external defibrillator may be used by any qualified
person.

(b) Any qualified person who gratuitously and in good faith renders emergency care or
treatment by the use of or provision of an automated external defibrillator shall not be held
liable for any civil damages as a result of such care or treatment or as a result of any act or
failure to act in providing or arranging further medical treatment where the person acts as
an ordinary reasonably prudent person would have acted under the same or similar circum-
stances.

(c) As used in this section, ``qualified person'' means a person who: (1) Has completed
a course in cardiopulmonary resuscitation or a basic first aid course that includes cardio-
pulmonary resuscitation training and (2) has completed a course of training in the use of
automated external defibrillators and (3) has demonstrated proficiency in the use of an
automated external defibrillator.'';

On page 1, in the title, in line 15, by striking ``automatic'' and inserting ``automated'';

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

Carlos Mayans

Jim Morrison

Jerry Henry

Conferees on part of House

Sandy Praeger

Larry D. Salmans

Chris Steineger

Conferees on part of Senate

On motion of Rep. Mayans, the conference committee report on SB 535 was adopted.

On roll call, the vote was: Yeas 121; Nays 0; Present but not voting: 0; Absent or not
voting: 3.

Yeas: Adkins, Alldritt, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Burroughs, Camp-
bell, Carmody, Cook, Correll, Cox, Crow, Dahl, Dean, Dillon, Dreher, Edmonds, Empson,
Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Freeborn, Garner,
Geringer, Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett, Helgerson, Hen-
derson, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, John-
son, Johnston, Kejr, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane,
Larkin, M. Long, P. Long, Mayans, Mays, McClure, McCreary, McKechnie, McKinney,
Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Osborne,
Packer, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta,
Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore,
Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch,
Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer,
Wempe, Wilk, Wilson.

Nays: None.

Present but not voting: None.

Absent or not voting: Allen, Compton, Mason.

The House stood at ease until the sound of the gavel.

______ Speaker Shallenburger called the House to order.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to Substitute for SB 675, 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 2, in line 37, by striking all after ``housing''; in line 38, by striking all before
``has'';

On page 6, in line 34, by striking ``2,500'' and inserting ``4,000, other than acreage com-
mitted to public or governmental uses'';

On page 8, in line 2, by striking ``, the council on travel and tourism''; in line 24, by striking
``and the council on travel and tourism'';

On page 31, in line 14, after the comma by inserting ``located within a county which
according to the 1990 decennial census contained a population greater than 25,000,''; in line
15, by striking ``$1,500,000''; also in line 15, by striking ``any unit of local'' and inserting ``the
unified''; in line 16, by striking ``local'' and inserting ``such unified''; in line 17, by striking
``direct''; also in line 17, by striking all after ``project''; in line 18, by striking all before the
period and inserting ``during the course of negotiations with the developer'';

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

Barbara P. Allen

Peggy Palmer

Conferees on part of House

Pat Ranson

Nick Jordan

Jim Barone

Conferees on part of Senate

On motion of Rep. Allen to adopt the conference committee report on Sub. SB 675,
Rep. Spangler offered a substitute motion to not adopt the conference committee report
and asked that a new conference committee be appointed. The substitute motion prevailed.

Speaker Shallenburger thereupon appointed Reps. Allen, Palmer and Spangler as third
conferees on the part of the House.

MOTIONS TO CONCUR AND NONCONCUR

On motion of Rep. Mayans, the House concurred in Senate amendments to HCR 5042,
A concurrent resolution establishing a task force on providers of mental health services to
study the providing of treatment for persons with mental disorders. (The House requested
the Senate to return the resolution, which was in conference).

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

Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Burroughs,
Campbell, Carmody, Cook, Correll, Cox, Crow, Dahl, Dean, Dillon, Dreher, Edmonds,
Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Freeborn,
Garner, Geringer, Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett, Helgerson,
Henderson, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison,
Johnson, Johnston, Kejr, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr,
Lane, Larkin, M. Long, P. Long, Mayans, Mays, McClure, McCreary, McKechnie, McKin-
ney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Osborne,
Packer, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta,
Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore,
Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch,
Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer,
Wempe, Wilk, Wilson.

Nays: None.

Present but not voting: None.

Absent or not voting: Compton, Mason.

CONFERENCE COMMITTEE REPORT

Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to House Substitute for SB 212, 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 as amended by House Committee of
the Whole, as follows:

On page 1, by striking all after the enacting clause; by striking all in page 2;

On page 3, by striking all before line 18;

By renumbering the existing sections;

Also on page 3, in line 25, by striking ``2001'' and inserting ``2003''; in line 26, by striking
all after the period; by striking lines 27 through 36; in line 37, by striking all before ``Each''
and inserting:

``With respect to enhanced universal service, such schedules shall provide for deployment
of ISDN, or its technological equivalent, or broadband facilities, only upon a firm customer
order for such service, or for deployment of other enhanced universal services by a local
exchange carrier. After receipt of such an order and upon completion of a deployment plan
designed to meet the firm order or otherwise provide for the deployment of enhanced
universal service, a local exchange carrier shall notify the commission. The commission shall
approve the plan unless the commission determines that the proposed deployment plan is
unnecessary, inappropriate, or not cost effective, or would create an unreasonable or ex-
cessive demand on the KUSF. The commission shall take action within 90 days. If the
commission fails to take action within 90 days, the deployment plan shall be deemed ap-
proved. This approval process shall continue until July 1, 2000.'';

On page 4, in line 13, by striking ``, or the technological equivalent,'';

On page 9, in line 18, by striking ``The''; by striking lines 19 and 20; in line 21, by striking
all before ``Any''; in line 26, by striking ``8.8'' and inserting ``8.89''; in line 29, after the period
by inserting the following:

``Prior to January 1, 2000, with respect to wireless telecommunications service providers,
an equitable and nondiscriminatory rate shall be an amount equal to the rate of contributions
of wireline telecommunications service providers, as determined by the commission, re-
duced by the percentage minutes of usage initiated and terminated entirely over the wireless
network as determined by the commission. The commission shall establish such rate for
wireless telecommunications service providers no later than December 31, 1998.'';

Also, on page 9, in line 40, by striking all after the period; by striking lines 41 and 42; in
line 43, by striking all before ``If'';

On page 10, in line 5, by striking ``: (1) A'' and inserting ``a''; in line 7, by striking all after
``request''; by striking lines 8, 9, and 10``; in line 11, by striking ``area''; in line 16, by striking
all after ``customers''; by striking line 17; in line 18, by striking all before ``within''; in line
28 after the second ``service'', by inserting ``, deployed subject to subsection (a) of K.S.A.
66-2005, and amendments thereto,'';

On page 11, in line 11, before ``October'', by inserting ``or after''; also in line 11, by striking
all after the period; by striking lines 12 through 14; in line 25, by striking all after ``both''
and inserting ``technically and economically feasible.'';

On page 12, in line 2, before the semicolon, by inserting ``with no deterioration of such
service'';

On page 13, by striking all after line 32;

On page 14, by striking all before line 15 and inserting new sections as follows:

``New Sec. 4. (a) The commission shall establish a KUSF working committee. The
membership of the working committee shall be determined by the commission subject to
the conditions set forth in subsection (b). The legislative coordinating council shall designate
the chair of the committee and the chair shall be a legislative member. Meetings shall be
on call of the chair.

(b) The membership of the KUSF working committee shall include:

(1) One representative for each of the following: Local exchange carriers subject to
price cap regulation, interexchange carriers, cable companies, wireless telecommunications
service providers, rural telephone companies, local exchange carriers certificated after Jan-
uary 1, 1996, competitive access providers, internet service providers, the citizens' utility
ratepayer board;

(2) a faculty member from a Kansas university with expertise in telecommunications
technology, a representative of elementary and secondary schools, a representative of a
public library, a large business, other than a telecommunications public utility and a small
business, other than a telecommunications public utility; and

(3) eight legislators as follows: two members of the house standing committee on utilities
appointed by the speaker of the house of representatives, two members of such committee
appointed by the minority leader of the house of representatives, two members of the senate
standing committee on commerce appointed by the president of the senate and two mem-
bers of such committee appointed by the minority leader of the senate. Legislators serving
as members of the committee and those members described in paragraph (2) shall receive
amounts provided by subsection (e) of K.S.A. 75-3223 and amendments thereto for each
day of actual attendance at any meeting of the task force or any subcommittee meeting
approved by the task force. Such amounts paid to members shall be paid from appropriations
to the legislative coordinating council pursuant to vouchers prepared by the director of
legislative administrative services and approved by the chairperson or vice-chairperson of
the legislative coordinating council.

(c) The KUSF working committee shall discuss, identify and develop recommendations
regarding technology issues, KUSF funding regulatory procedures, modifications to en-
hanced universal service and other issues identified by the committee, including but not
limited to:

(1) The definition of enhanced universal service;

(2) how and when enhanced universal services should be deployed;

(3) what mechanism is most appropriate for the recovery of capital costs; and

(4) how to address internet access in light of changing technology.

(d) On or before December 1, 1998, the KUSF working committee shall submit a report
and recommendations to the legislature based on the activities of the working committee.

(e) The legislative research department, the commission and office of the revisor of
statutes shall provide staff support for the committee. Legislative staff shall prepare the
report and any recommendations of the working committee.

New Sec. 5. (a) As used in this section:

(1) ``Express authorization'' means an express, affirmative act by a consumer clearly
agreeing to the change in the consumer's telecommunications carrier or local exchange
carrier to another carrier.

(2) ``Telecommunications services'' has the meaning provided by K.S.A. 66-1,187 and
amendments thereto.

(b) No local exchange carrier or telecommunications carrier shall submit to a local
exchange carrier an order to change a consumer's telecommunications carrier or local
exchange carrier to another carrier without having obtained the express authorization of the
consumer authorized to make the change. The local exchange carrier or telecommunications
carrier requesting the change shall have the burden of proving the express authorization by
a preponderance of the evidence.

(c) No local exchange carrier, telecommunications carrier or third party utilized to verify
an order to change a consumer's telecommunications carrier or local exchange carrier to
another carrier shall:

(1) Engage in any activity, conduct or representation while soliciting or verifying a
change in a consumer's telecommunications carrier or local exchange carrier to another
carrier that has the capacity to mislead, deceive or confuse the consumer;

(2) employ a box or container used to collect entries for sweepstakes, contests or draw-
ings to gather letters of agency or other documents that constitute authorizations by con-
sumers to change the consumers' telecommunications carrier or local exchange carrier to
another carrier or to change or add to the consumers' other telecommunications services;
or

(3) use any methods not approved by the federal communications commission statutes,
rules and regulations (as in effect on the effective date of this act) or state corporation
commission rules and regulations to change a consumer's telecommunications carrier or
local exchange carrier to another carrier.

(d) Any local exchange carrier or telecommunications carrier that violates subsection
(b) or (c) shall be subject to a civil penalty of not less than $5,000 nor more than $20,000
for each such violation instead of the penalty provided for in subsection (a) of K.S.A. 50-
636, and amendments thereto.

(e) Any violation of this section is a deceptive and unconscionable act or practice under
the provisions of the Kansas consumer protection act and shall be subject to any and all of
the enforcement provisions of the Kansas consumer protection act. Nothing in this section
shall preclude the state corporation commission from exerting its authority as it pertains to
intrastate services nor the attorney general from pursuing violations of any other provisions
of the Kansas consumer protection act by a local exchange carrier or telecommunications
carrier.

(f) All local exchange carriers shall offer consumers the option of notifying the local
exchange carrier in writing that they do not desire any change of telecommunications carrier
regardless of any orders to the contrary submitted by any third party. The consumer shall
be permitted to cancel such notification or to change its telecommunications carrier by
notifying the consumer's local exchange carrier accordingly. All local exchange carriers shall
annually notify the consumers of the carrier's telecommunications services of the availability
of this option.

(g) This section shall be part of and supplemental to the Kansas consumer protection
act.

Also on page 14, in line 15, by striking ``66-1,187'';

In the title, in line 10, by striking ``universal''; in line 11, by striking ``service,''; in line 12,
by striking ``66-1,187'';

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

Clay Aurand

Tom Sloan

Dennis McKinney

Conferees on part of House

Alicia L. Salisbury

Karin S. Brownlee

Jim Barone

Conferees on part of Senate

On motion of Rep. Aurand to adopt the conference committee report on H. Sub. for
SB 212, Rep. Burroughs offered a substitute motion to not adopt the conference committee
report and asked that a new conference committee be appointed. The substitute motion did
not prevail.

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

On roll call, the vote was: Yeas 99; Nays 23; Present but not voting: 0; Absent or not
voting: 2.

Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Burroughs,
Correll, Cox, Crow, Dahl, Dillon, Dreher, Edmonds, Empson, Faber, Farmer, Feuerborn,
Findley, Flaharty, Flora, Flower, Freeborn, Geringer, Gilbert, Glasscock, Grant, Gregory,
Haley, Hayzlett, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison,
Johnson, Johnston, Kejr, Kirk, Phil Kline, Phill Kline, Krehbiel, Kuether, Lane, Larkin, M.
Long, P. Long, McClure, McCreary, McKechnie, McKinney, Minor, Mollenkamp, Morri-
son, Myers, Neufeld, Nichols, O'Neal, Osborne, Pauls, E. Peterson, J. Peterson, Phelps,
Pottorff, Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenbur-
ger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Stone, Storm, Tanner, Thimesch, To-
elkes, Tomlinson, Toplikar, Vickrey, Weber, Weiland, Wells, Welshimer, Wempe, Wilk.

Nays: Campbell, Carmody, Cook, Dean, Franklin, Garner, Gilmore, Helgerson, Hen-
derson, Klein, Landwehr, Mayans, Mays, O'Connor, Packer, Palmer, Powell, Powers, Span-
gler, Swenson, Vining, Wagle, Wilson.

Present but not voting: None.

Absent or not voting: Compton, Mason.

EXPLANATION OF VOTE Mr. Speaker: While H. Sub. for SB 212 may slightly reduce some charges, it isn't
enough. I vote no on H. Sub. for SB 212 and urge the legislature to reduce the cost
increases it caused in the 1996 telecommunications act.--Henry M. Helgerson, Jr.,
Cliff Franklin, Tony Powell

MESSAGES FROM THE GOVERNOR

HB 2282, 2607, 2832, 2854, 2867, 2902 approved on April 10, 1998.

INTRODUCTION OF ORIGINAL MOTIONS

Pursuant to Joint Rule 3 (f), Rep. Jennison moved that the rules be suspended and that
no copies be printed of the conference committee report on SB 11. The motion prevailed.

CONFERENCE COMMITTEE REPORT

MR. PRESIDENT and MR. SPEAKER: Your committee on conference on House
amendments to SB 11, 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 32 through 43;

By striking all on pages 2 through 74;

On page 75, by striking all in lines 1 through 7 and inserting the following:

``Section 1. K.S.A. 1997 Supp. 20-2601, as amended by section 15 of 1997 Senate Bill
No. 382, is hereby amended to read as follows: 20-2601. As used in K.S.A. 20-2601 et seq.
and amendments thereto, unless the context otherwise requires:

(a) ``Fund'' means the Kansas public employees retirement fund created by K.S.A. 74-
4921 and amendments thereto;

(b) ``retirement system for judges'' means the system provided for in the acts contained
in article 26 of chapter 20 of the Kansas Statutes Annotated and any acts amendatory thereof
or supplemental thereto;

(c) ``judge'' means any duly elected or appointed justice of the supreme court, judge of
the court of appeals or judge of any district court of Kansas, who serves in such capacity on
and after the effective date of this act and commencing with the first day of the first payroll
period of the fiscal year ending June 30, 1994, any district magistrate judge who makes an
election as provided in K.S.A. 20-2620 and amendments thereto or who is elected or ap-
pointed on or after July 1, 1993;

(d) ``member'' means a judge who is making the required contributions to the fund, or
any former judge who has made the required contributions to the fund and has not received
a refund of the judge's accumulated contributions;

(e) ``prior service'' means all the periods of time any judge has served in such capacity
prior to the effective date of this act except that district magistrate judges who have service
credit under the Kansas public employees retirement system must make application to the
board and, subject to the provisions of section 83 and amendments thereto, make payment
as required by the board to transfer service credit from the Kansas public employees re-
tirement system to the retirement system for judges;

(f) ``current service'' means the period of service any judge serves in such capacity from
and after the effective date of this act;

(g) ``military service'' means service of any judge for which retirement benefit credit
must be given as provided in the uniformed services employment and reemployment rights
act of 1994, as in effect on July 1, 1998;

(h) ``total years of service'' means the total number of years served as a judge, including
prior service, military service and current service as defined by this section, computed to
the nearest quarter;

(i) ``salary'' means the statutory salary of a judge;

(j) ``final average salary'' means that determined as provided in subsection (b) of K.S.A.
20-2610 and amendments thereto;

(k) ``beneficiary'' means any natural person or persons or estate designated by a judge
in the latest designation of beneficiary received in the retirement system office to receive
any benefits as provided for by this act. Except as provided in subsection (n), if there is no
named beneficiary living at the time of the judge's death, any benefits provided for by this
act shall be paid to: (1) The judge's surviving spouse; (2) the judge's dependent child or
children; (3) the judge's dependent parent or parents; (4) the judge's nondependent child
or children; (5) the judge's nondependent parent or parents; or (6) the estate of the deceased
member; in the order of preference as specified in this subsection. ~~Any payment made to~~
~~a named beneficiary shall be a full discharge and release to the system from any further~~
~~claims. Any payment made to a beneficiary as provided in clauses (1), (2), (3), (4), (5) or~~
~~(6) of this subsection, as determined by the board, shall be a full discharge and release to~~
~~the system from any further claims. Whenever any payment is payable to more than one~~
~~beneficiary such payment shall be made to such beneficiaries jointly. Any benefits payable~~
~~to a beneficiary or beneficiaries who are minor children or incompetent persons shall be~~
~~made in the name of the beneficiary or beneficiaries and delivered to the lawfully appointed~~
~~conservator of such beneficiaries who was nominated by will or as otherwise provided by~~
~~law, except that in those cases where the benefit involves only the payment of the judge's~~
~~accumulated contributions with interest as provided by this act in an amount not to exceed~~
~~$500, the board is hereby authorized in its discretion without the appointment of a conser-~~
~~vator or the giving of a bond to pay such amount as is due to the minor or minors themselves,~~
~~any payment so made shall be a full discharge and release to the system from any further~~
~~claims.~~ Designations of beneficiaries by a member who is a member of more than one
retirement system made on or after July 1, 1987, shall be the basis of any benefits payable
under all systems unless otherwise provided by law;

(l) ``annuity'' means a series of equal monthly payments, payable at the end of each
calendar month during the life of a retired judge, of which payments the first payment shall
be made as of the end of the calendar month in which such annuity was awarded and the
last payment shall be at the end of the calendar month in which such judge dies. The first
payment shall include all amounts accrued since the effective date of the award of annuities,
including a pro rata portion of the monthly amount of any fraction of a month elapsing
between the effective date of such annuity and the end of the calendar month in which such
annuity began;

(m) ``board'' means the board of trustees of the Kansas public employees retirement
system;

(n) ``trust'' means an express trust created by any trust instrument, including a will, and
designated by a member to receive benefits and other amounts payable under K.S.A. 20-
2607, 20-2610a and 20-2612, and amendments thereto, instead of a beneficiary. A desig-
nation of a trust shall be filed with the board. If there is a designated trust at the time of
the member's death, all benefits and other amounts payable under K.S.A. 20-2607, 20-2610a
and 20-2612, and amendments thereto, shall be paid to the trust instead of the member's
beneficiary. If no will is admitted to probate within six months after the death of the member
or no trustee qualifies within such six months or if the designated trust fails, for any reason
whatsoever, any benefits and other amounts payable under K.S.A. 20-2607, 20-2610a and
20-2612, and amendments thereto, shall be paid to the member's beneficiary and any pay-
ments so made shall be a full discharge and release to the retirement system for judges from
any further claims;

(o) ``accumulated contributions'' means the sum of all contributions by a member to
the retirement system for judges which are credited to the member's account, with interest
allowed thereon after June 30, 1982;

(p) ``federal internal revenue code'' means the federal internal revenue code of 1954 or
1986, as in effect on July 1, 1998, and as applicable to a governmental plan; and

(q) except as otherwise provided in K.S.A. 20-2601 et seq. and amendments thereto,
words and phrases used in K.S.A. 20-2601 et seq. and amendments thereto shall have the
same meanings ascribed to them as are defined in K.S.A. 74-4902 and amendments thereto.

Sec. 2. K.S.A. 20-2601a is hereby amended to read as follows: 20-2601a. (a) On and
after July 1, 1975, the Kansas judges retirement board established pursuant to K.S.A. 20-
2604 and amendments thereto shall be and is hereby abolished, and on ~~said~~ such date, except
as otherwise provided in this act, all of the powers, duties and functions of said Kansas
judges retirement board, whether in its capacity as that board pursuant to K.S.A. 20-2604
and amendments thereto or in its capacity as the Kansas official court reporters retirement
board pursuant to K.S.A. 20-2704, shall be and are hereby transferred to and conferred and
imposed upon the board of trustees of the Kansas public employees retirement system.

(b) Except as otherwise provided in this act, the board of trustees of the Kansas public
employees retirement system shall be the successor in every way to the powers, duties and
functions of the Kansas judges retirement board, whether in its capacity as that board pur-
suant to K.S.A. 20-2604 and amendments thereto or in its capacity as the Kansas official
court reporters retirement board pursuant to K.S.A. 20-2704, in which the same were vested
prior to July 1, 1975. Every act performed in the exercise of such powers, duties and func-
tions by or under the authority of the board of trustees of the Kansas public employees
retirement system shall be deemed to have the same force and effect as if performed by
the Kansas judges retirement board in which such powers, duties and functions were vested
prior to July 1, 1975.

(c) On and after July 1, 1975, whenever the Kansas judges retirement board, or words
of like effect, is referred to or designated by a statute or contract or other document, such
reference or designation shall be deemed to apply to the board of trustees of the Kansas
public employees retirement system.

(d) On and after July 1, 1975, whenever the Kansas official court reporters retirement
board, or words of like effect, is referred to or designated by a statute or contract or other
document, such reference or designation shall be deemed to apply to the board of trustees
of the Kansas public employees retirement system.

(e) The board of trustees of the Kansas public employees retirement system shall adopt
rules and regulations necessary for the administration of the retirement system for judges
and for the transaction of business consistent with law. All rules or regulations of the Kansas
judges retirement board in existence on July 1, 1975, whether adopted when acting as that
board pursuant to K.S.A. 20-2604 and amendments thereto or when acting as the Kansas
official court reporters retirement board pursuant to K.S.A. 20-2704, shall continue in force
and effect and shall be deemed to be duly adopted rules or regulations of the board of
trustees of the Kansas public employees retirement system, until revised, amended, revoked
or nullified pursuant to law.

(f) All decisions and determinations of the Kansas judges retirement board in effect on
July 1, 1975, whether made when acting as that board pursuant to K.S.A. 20-2604 and
amendments thereto or when acting as the Kansas official court reporters retirement board
pursuant to K.S.A. 20-2704, shall continue in force and effect and shall be deemed to be
decisions and determinations of the board of trustees of the Kansas public employees re-
tirement system, until revised, amended, revoked or nullified pursuant to law.

Sec. 3. K.S.A. 20-2606, as amended by section 17 of 1997 Senate Bill No. 382, is hereby
amended to read as follows: 20-2606. (a) Any judge whose service is terminated prior to
retirement, for any cause other than death, ~~may,~~ upon written request to the board and
after 30 days after such termination, may have returned the total amount of accumulated
contributions which the judge has made to the fund after the retirement system for judges
has a reasonable time to process the application for withdrawal. The return of accumulated
contributions to a judge shall preclude that judge from any benefits under the retirement
system for judges unless and until that judge again serves in such capacity.

(b) Any incumbent judge over 70 years of age with a total service of at least eight years
at the time the judge's present term of office expires, or at the time of retirement if the
judge retires before the end of the judge's present term, shall receive retirement annuities
as provided in K.S.A. 20-2608, 20-2609 and 20-2610, and any amendments thereto, unless
the judge requests the return of accumulated contributions under this section.

(c) In case any judge, who has had such judge's accumulated contributions returned
under this section, serves again in such capacity, such judge may return, subject to the
provisions of section 83 and amendments thereto, the amount refunded under this section
without interest or penalty and regain such judge's original status under the retirement
system for judges.

(d) Subject to the provisions of section 83 and amendments thereto, any member of the
retirement system for judges who was previously a member of the Kansas public employees
retirement system or the Kansas police and firemen's retirement system and who forfeited
service credit under either of those systems by reason of termination of employment and
withdrawal of their contributions to that system, may elect to purchase service credit for
the previously forfeited service credit by means of having employee contributions as pro-
vided in K.S.A. 20-2603 and amendments thereto deducted from such judge's compensation
at an additional rate of contribution, based upon such judge's attained age at the time of
purchase and using actuarial assumptions and tables in use by the retirement system at such
time of purchase for such periods of service. Such additional rate of contribution shall com-
mence at the beginning of the quarter following such election and shall remain in effect until
all of the full quarters of such service have been purchased. Such member may purchase
such service by means of a single lump-sum payment ~~and~~ in lieu of employee contributions
as provided in this subsection. Such service shall be recredited to that system. The amount
of the lump-sum payment shall be determined by the actuary using the member's then
current annual rate of compensation ~~and~~, the actuarial assumptions and tables then currently
in use by that retirement system and the judge's attained age.

Sec. 4. K.S.A. 20-2609 is hereby amended to read as follows: 20-2609. (a) Any judge
who has become permanently physically or mentally disabled and who is not entitled to
retire under K.S.A. 20-2608 and amendments thereto may, upon being found so disabled
by the supreme court, retire under this section, and upon such retirement such judge shall
be entitled to receive an annuity, each monthly payment of which shall be in an amount
equal to 3.5% of the final average salary of the judge, determined as provided in subsection
(b) of K.S.A. 20-2610 and amendments thereto, multiplied by the number of total years of
service, but for any judge who becomes disabled as provided in this section on or after July
1, 1998, such monthly benefits shall be at least ~~25%~~ 50% but shall not exceed 70% of the
final average salary of the judge, determined as provided in subsection (b) of K.S.A. 20-
2610 and amendments thereto.

(b) Any judge, or the conservator of any judge, desiring to retire under the provisions
of this section shall file an application for such retirement with the clerk of the supreme
court, which application shall be in such form and contain such information as the supreme
court shall require. The court may require such judge to be examined by a physician ap-
pointed by the court and may require such other evidence and proof of disability as it deems
necessary to reach a determination as to whether such judge is so permanently disabled. If
the supreme court shall determine that any such judge is so permanently disabled it shall
promptly notify the board and thereupon such judge shall be placed on retirement by the
board and monthly receive the retirement annuity as provided in this section.

(c) Any judge receiving an annuity under the provisions of this section shall be consid-
ered an active judge for the purposes of K.S.A. 20-2608 and amendments thereto and shall,
upon reaching age 65 or upon making application for retirement, have such judge's retire-
ment under this section terminated and such judge shall be placed on retirement under the
provisions of K.S.A. 20-2608 and amendments thereto.

(d) In the event that a judge eligible for a disability annuity authorized by this section
shall be disabled for a period of five years or more immediately preceding retirement, such
judge's final average salary shall be adjusted upon retirement by the actuarial salary as-
sumption rates in existence during such period of disability. Effective July 1, 1993, such
judge's final average salary shall be adjusted upon retirement by 5% for each year of disability
after July 1, 1993, but before July 1, 1998. Effective July 1, 1998, such judge's final average
salary shall be adjusted upon retirement by an amount equal to the lesser of: (1) The
percentage increase in the consumer price index for all urban consumers as published by
the bureau of labor statistics of the United States department of labor minus 1%; or (2) four
percent per annum, measured from the month the disability occurs to the month that is two
months prior to the month of retirement, for each year of disability after July 1, 1998.

(e) The provisions of law in effect on the retirement date of a judge under the retirement
system for judges shall govern the retirement benefit payable to the judge, any joint annu-
itant and any beneficiary.

Sec. 5. K.S.A. 20-2610 is hereby amended to read as follows: 20-2610. (a) (1) A judge
who retires under K.S.A. 20-2608, and amendments thereto, shall be entitled to receive an
annual annuity payable in monthly amounts subject to subsection (b), each ~~monthly payment~~
such annual annuity of which shall be in an amount equal to the total of 5% of the final
average salary of the judge, determined as provided in subsection (b), multiplied by the
number of the judge's years of service up to 10 years, and 3.5% of the final average salary
of the judge, determined as provided in subsection (b), multiplied by the number of the
judge's years of service in excess of 10 years, but such ~~monthly benefits~~ annual annuity shall
not exceed 70% of the final average salary of such judge, determined as provided in sub-
section (b). A judge who retires under K.S.A. 20-2608 and amendments thereto, and who
became a member of the system after June 30, 1987, shall be entitled to receive an annual
annuity payable in monthly amounts subject to subsection (b), each ~~monthly payment~~ such
annual amount of which shall be in an amount equal to the total of 3.5% of the final average
salary of the judge, determined as provided in subsection (b), multiplied by the number of
the judge's years of service, but such ~~monthly benefits~~ annual annuity shall not exceed 70%
of the final average salary of the judge, determined as provided in subsection (b).

(2) For purposes of this subsection, the date of membership for a district magistrate
judge who became a member of the system as provided by K.S.A. 20-2620 and amendments
thereto and who purchased service as provided in subsection (c) of K.S.A. 20-2620 and
amendments thereto shall be the day such district magistrate judge became a district mag-
istrate judge and if such district magistrate judge's membership date as determined in this
subsection is earlier than July 1, 1987, such district magistrate judge shall be entitled to the
5% of final average salary calculation for up to 10 years of service as provided in this
subsection. Any additional cost associated with the provisions of this subsection shall be paid
by such district magistrate judge by means of a single lump-sum payment or equal annual
payments for not to exceed five years. The lump-sum or annual payments shall be determined
by the system's actuary by using the member's final average salary at the time of application,
actuarial assumptions and tables currently in use by the system and the member's attained
age. No participating employer shall pay all or any part of any cost associated with the
provisions of this subsection. Notwithstanding any other provision of this subsection, any
district magistrate judge, who became a district magistrate judge earlier than July 1, 1987,
and who elected to purchase service as provided in subsection (c) of K.S.A. 20-2620 and
amendments thereto prior to the effective date of this act at the rate of 3.5%, may elect to
purchase service at the 5% rate for up to 10 years of service as provided in this subsection
an additional amount of 1.5% of final average salary for each of such years of employment
of such district magistrate judge as otherwise provided in this subsection. Such district
magistrate judge may purchase such service by making application therefor prior to date of
retirement at an additional rate of contribution in addition to the district magistrate judge's
rate of contribution as provided in K.S.A. 20-2603 and amendments thereto, based upon the
district magistrate judge's attained age at the time of purchase and using actuarial assump-
tions and tables in use by the retirement system at the time of such purchase. Such additional
rate of contribution shall commence at the beginning of the quarter following such election
and shall remain in effect until all quarters of such service have been purchased. No partic-
ipating employer shall pay the cost, or any part thereof, of any service authorized to be
purchased by a district magistrate judge under this subsection.

(b) For any judge who retires under K.S.A. 20-2608 or 20-2609, and amendments
thereto, on or after July 1, 1975, the annuity shall be based on the final average salary of
such judge as provided in this subsection. The final average salary of a judge who becomes
permanently physically or mentally disabled and who is retired under K.S.A. 20-2608 or 20-
2609, and amendments thereto, shall be determined as if such judge had retired on the date
such judge became permanently physically or mentally disabled. The final average salary of
a former judge whose service is terminated without retiring and who later retires under
K.S.A. 20-2608, and amendments thereto, shall be determined as if such former judge had
retired at the time such service was terminated.

In the case of judges who retire on or after July 1, 1993, the final average salary shall
mean the average highest annual salary paid to the judge for any three years of the last 10
years of service as a judge immediately preceding retirement or termination of employment,
or if service as a judge is less than three years, then the final average salary shall be the
average annual salary paid to the judge during the full period of service as a judge, or if
service as a judge is less than one year, then the final average salary shall be computed by
multiplying the amount of monthly salary such judge was receiving at the time of retirement
by 12.

(c) The provisions of law in effect on the retirement date of a judge under the retirement
system for judges shall govern the retirement benefit payable to the judge, any joint annu-
itant and any beneficiary.

(d) A judge who retires under K.S.A. 20-2608, and amendments thereto, and who, after
such retirement, again is appointed or elected as a judge, shall have the judge's retirement
annuity suspended as provided in this subsection. Such judge shall become an active member
and make employee contributions to the system and receive service credit for any service
after the date of commencement of service in such position. Upon again retiring, any credited
service such member subsequently accrues shall be added to all previous service and the
retirement annuity shall be recalculated in accordance with the provisions of this section.

Sec. 6. K.S.A. 20-2620, as amended by section 20 of 1997 Senate Bill No. 382, is hereby
amended to read as follows: 20-2620. (a) Except as otherwise provided, each district mag-
istrate judge holding such position on the effective date of this act may become a member
of the retirement system for judges on the first day of the payroll period of the fiscal year
ending June 30, 1994, only by filing with the board of trustees of the Kansas public em-
ployees retirement system on or before the first day of the payroll period of the fiscal year
ending June 30, 1994, a written election to become a member of the system. Failure to file
such written election shall be presumed to be an election not to become a member of the
system. Such election, whether to become a member or not to become a member, shall be
irrevocable. In addition, any such district magistrate judge who makes the election previously
provided in this section, may elect to transfer such district magistrate judge's service credit
from the Kansas public employees retirement system as provided in subsection (e) of K.S.A.
20-2601 and amendments thereto and subsection (c). The date of membership for a district
magistrate judge who became a member of the system as provided in this section and who
purchased service as provided in subsection (c) shall be the day that such district magistrate
judge became a district magistrate judge. Such district magistrate judge shall be subject to
the provisions of subsection (a)(2) of K.S.A. 20-2610 and amendments thereto.

(b) Each person who becomes a district magistrate judge on or after the effective date
of this act shall become a member of the retirement system for judges on the first day such
person holds the position of district magistrate judge.

(c) The board of trustees of the Kansas public employees retirement system shall trans-
fer to the credit of the district magistrate judge under the retirement system for judges such
amounts as may be presently credited to a district magistrate judge's account for contribution
under the Kansas public employees retirement system and an equivalent amount to the
employer's account for contributions for such district magistrate judge whenever an appli-
cation for conversion of service under the Kansas public employees retirement system is
received from a district magistrate judge. Subject to the provisions of section 83 and amend-
ments thereto, any district magistrate judge may purchase such service by electing such
purchase prior to retirement by means of a single lump-sum payment or equal annual
payments for not to exceed five years. The lump-sum or annual payments shall be deter-
mined by the system's actuary by using the member's final average salary at the time of
application, actuarial assumptions and tables currently in use by the system and the mem-
ber's attained age.

Sec. 7. K.S.A. 1997 Supp. 46-2201 is hereby amended to read as follows: 46-2201. (a)
On January 1, 1993, there is hereby created the joint committee on pensions, investments
and benefits which shall be composed of five senators and eight members of the house of
representatives. The five senate members shall be the chairperson of the standing committee
on ways and means of the senate, or a member of such committee appointed by the chair-
person, two members appointed by the president and two members appointed by the mi-
nority leader. The eight representative members shall be the chairperson of the standing
committee on appropriations of the house of representatives, or a member of such com-
mittee appointed by the chairperson, four members appointed by the speaker and three
members appointed by the minority leader.

(b) All members of the joint committee on pensions, investments and benefits shall
serve for terms ending on the first day of the regular legislative session in odd-numbered
years. After June 30 in odd-numbered years, the chairperson shall be one of the represen-
tative members of the joint committee selected by the speaker and the vice-chairperson
shall be one of the senate members selected by the president. After June 30 in even-num-
bered years, the chairperson shall be one of the senate members of the joint committee
selected by the president and the vice-chairperson shall be one of the representative mem-
bers of the joint committee selected by the speaker. The chairperson and vice-chairperson
of the joint committee shall serve in such capacities until July 1 of the ensuing year. The
vice-chairperson shall exercise all of the powers of the chairperson in the absence of the
chairperson.

(c) The joint committee on pensions, investments and benefits shall meet at any time
and at any place within the state on call of the chairperson. Members of the joint committee
shall receive compensation and travel expenses and subsistence expenses or allowances as
provided in K.S.A. 75-3212 and amendments thereto when attending meetings of such
committee authorized by the legislative coordinating council.

(d) In accordance with K.S.A. 46-1204 and amendments thereto, the legislative coor-
dinating council may provide for such professional services as may be requested by the joint
committee on pensions, investments and benefits.

(e) The joint committee on pensions, investments and benefits may introduce such
legislation as deemed necessary in performing such committee's functions.

(f) The joint committee on pensions, investments and benefits shall:

(1) Monitor, review and make recommendations regarding investment policies and ob-
jectives formulated by the board of trustees of the Kansas public employees retirement
system;

(2) review and make recommendations relating to benefits for members under the Kan-
sas public employees retirement system;

(3) consider and make recommendations to the standing committee of the senate spec-
ified by the president of the senate relating to the confirmation of members of the board
of trustees of the Kansas public employees retirement system appointed pursuant to K.S.A.
74-4905 and amendments thereto. On and after July 1, 1993, the information provided by
the Kansas bureau of investigation or other criminal justice agency pursuant to subsection
(h) of K.S.A. 74-4905 and amendments thereto relating to the confirmation of members of
the board to the standing committee of the senate specified by the president shall be for-
warded by the Kansas bureau of investigation or such other criminal justice agency to such
joint committee for such joint committee's consideration and other than conviction data,
shall be confidential and shall not be disclosed except to members and employees of the
joint committee as necessary to determine qualifications of such member. The committee,
in accordance with K.S.A. 75-4319 and amendments thereto shall recess for a closed or
executive meeting to receive and discuss information received by the committee pursuant
to this subsection; ~~and~~

(4) review and make recommendations to the legislature by the first day of legislative
session commencing in 1997 relating to the implementation of a permanent policy regarding
adjustments in retirement benefit payments to retirants and disabled members. Such rec-
ommendations should include a review of cost-of-living adjustments, the shared earnings
proposal presented to the 1996 legislature and other mechanisms for prefunding adjust-
ments in retirement benefit payments to retirants and disabled members as an alternative
to annual cost-of-living adjustments. In conducting such review the committee may utilize
legislative staff, Kansas public employees retirement system staff, the Kansas public em-
ployees retirement system actuary and other consultants. Any recommendations shall in-
clude actuarially based cost estimates, including an assessment of the impact on the Kansas
public employees retirement system fund's unfunded actuarial liability; and

(5) review and make recommendations relating to inclusion of city and county cor-
rectional officers as eligible members of the Kansas police and firemen's retirement system.

Sec. 8. K.S.A. 72-5501, as amended by section 22 of 1997 Senate Bill No. 382, is hereby
amended to read as follows: 72-5501. As used in this act, unless the context otherwise
requires:

(a) ``Retirement system'' means the state school retirement system;

(b) ``board'' means the board of trustees of the Kansas public employees retirement
system;

(c) ``school year'' means either the twelve-month period beginning on September first,
or the legal school term during such period. In case of doubt the board shall decide what
constitutes a school year. The board shall not give credit for a school year that represents
less than 140 days, except that the board may give credit for a school year if not less than
80 days of actual service has been rendered and if continuance in school service was pre-
vented by illness or other emergency beyond the control of the person entitled to such
credit. No person shall receive credit for more than one school year during any twelve-
month period beginning on September 1. The board shall give credit for 1/2 of a school year
for 1/2 school year of continuous full-time service;

(d) ``school employees'' means persons who have performed or who shall hereafter per-
form school services as classroom teachers, administrators, supervisors, librarians, nurses,
clerks, janitors or in any other full-time capacity in the public schools, area vocational-
technical schools or community junior colleges of the state of Kansas and who are citizens
of the United States and school employees shall include: (1) Persons who have performed
service as a county superintendent of public instruction or as an employee appointed by and
under the supervision of a county superintendent; (2) persons who have performed service
as a state superintendent of public instruction or as an employee appointed by and under
supervision of a state superintendent; (3) persons who have performed services as an em-
ployee appointed by the former state board for vocational education, except that prior to
the time of accepting such employment by such county superintendent, state superintendent
or state board for vocational education such employees had performed school service in
Kansas as a teacher, principal, supervisor, or superintendent; (4) persons who are employees
appointed by and under the supervision of the constitutional state board of education, in-
cluding those employees transferred to the state department of education at its inception
in January of 1969, and who prior to the time of accepting such employment by the state
board of education had performed school service in Kansas as a teacher, principal, super-
visor, or superintendent; (5) the commissioner of education if such commissioner exercises
an irrevocable option to be covered by the state school retirement system in lieu of being
covered by the Kansas public employees retirement system, which option shall be exercised
by written notice of the commissioner of education at the time of appointment. Such notice
shall be directed to the state school retirement board and the board of trustees of the Kansas
public employees retirement system; (6) all instructional employees for the school for the
blind and such employees shall be excluded from participation in any other state retirement
system; and (7) teachers and supervisors of instruction at the state institutions under the
management of the director of penal institutions and those under the management of the
state board of social welfare which provide regular classroom instruction for their inmates
or patients if such instructional personnel have valid certificates issued by the state board
of education, except that the provisions of this subsection shall not include such employees
who have elected or shall elect, irrevocably, at the time of employment by the institution to
participate in the Kansas public employees retirement system. The term ``school employees''
shall not include any employee while a member of a separate retirement system operated
by any board of education but if any such employee at any time becomes eligible to partic-
ipate in the state retirement as provided by this act, the years such person served in a school
system in Kansas which maintains a separate retirement system shall be included in deter-
mining years of service of such person under this act. An employee performing service in a
school system maintaining its own separate retirement system in Kansas may qualify for
service credit in the state system by discontinuing membership in such separate retirement
system prior to the time of retirement and accepting a position which is covered by the state
retirement system, and continuing in such service for at least one school year. Subject to
the provisions of section 83 and amendments thereto, such employee shall contribute to the
state retirement system an amount of money equal to that which was deducted from such
employee's salary for services rendered after September 1, 1941, in the city maintaining its
own retirement system and this amount shall be credited to the savings account of the
employee. If such employee was for any reason excluded from participation in the separate
retirement system, the board shall give credit for such nonmember service in the public
schools in the city maintaining a separate retirement system without the required transfer
of funds. After September 1, 1971, no person shall be deemed a school employee for the
purposes of this act;

(e) ``school service'' means: (1) Service performed as a school employee prior to Sep-
tember 1, 1941, if such years of service include at least six months during the years 1938-
39 or 1939-40 or 1940-41; service performed by any employee who was not in school service
in any of the school years from 1938 to 1941, but who reentered school service after Sep-
tember 1, 1941, and continued in such service for at least five years; all service prior to
September 1, 1941, of any annuitant who retired prior to September 1, 1961, and who was
granted a service annuity for one or more years as a contributing member of the school
retirement system; all service prior to September 1, 1941, of any employee who served for
at least six months during one of the qualifying years from 1938 to 1941 in a school system
maintaining its own separate retirement system in Kansas, if such employee has not quali-
fied, nor will in the future qualify, for retirement benefits under the separate retirement
system; all service as a school employee, including out-of-state service as a school employee,
for a period of 12 10 or more years prior to September 1, 1938, except that service annuities
paid by the state of Kansas to such school employees shall not include such out-of-state
service as a school employee, unless otherwise provided by law; (2) service as a school
employee after September 1, 1941, as a contributing member of the school retirement
system. No service credit shall be granted to a school employee who established or shall
hereafter establish membership later than September 1, 1941, for a period of time between
September 1, 1941, and the date of becoming a contributing member of the retirement
system. School service shall include only full-time employees, except that 1/2 year of credit
shall be given to instructional employees who perform school service on at least a 1/2 time
basis throughout a school year. No school service credit shall be given in fractional units of
less than 1/2 year. The board may grant service credit to employees, who were performing
school service at the time of their induction into the armed forces of the United States,
equal to the time spent in the armed forces between September 1, 1940, and September 1,
1947, and between June 25, 1950, and July 27, 1953 and between August 5, 1964, and
August 15, 1973, but no such service credit shall be granted for a period of more than five
years spent in the armed forces between September 1, 1940, and September 1, 1947, or for
a period of more than two years spent in the armed forces between June 25, 1950, and July
27, 1953 or for a period of more than two years spent in the armed forces between August
5, 1964 and August 15, 1973. In the event the employee served during the periods between
September 1, 1940, and September 1, 1947, and between June 25, 1950, and July 27, 1953,
such employee shall be granted a service credit for the actual time spent in the armed forces
between June 25, 1950, and July 27, 1953, nor shall such service credit be granted to any
employee unless such employee shall reenter school service and continue in such service
for at least one school year. The board may grant service credit to an employee who was
performing school service prior to the time of becoming employed as a veterans' instruc-
tional on-the-farm training instructor equal to the time spent as such instructor between
the dates of September 1, 1946, and September 1, 1961. The board may grant service credit
to an employee who prior to performing school service was a faculty member of the Kansas
vocational school at Topeka, known part of the time as the Kansas technical institute, which
operated under the Kansas state board of regents prior to 1956 equal to the time spent as
instructor at such school. In case of doubt the board shall decide what constitutes school
service; and (3) service for which credit must be given under federal law, including, but not
limited to, when applicable, the uniformed services employment and reemployment rights
act of 1994, as in effect on July 1, 1998;

(f) ``school annuitant'' means any person who is entitled to receive a school annuity;

(g) ``school annuity'' means the monthly payments due to any school annuitant. Such
payments shall continue for life, and be paid in monthly installments;

(h) ``service annuity'' means that part of the school annuity which is based upon the
service record of the person concerned, and which is paid by the state;

(i) ``savings annuity'' means that part of the school annuity which results from the ac-
cumulated contributions of the school employee and interest thereon less the proportionate
share of the expense of the administration of this act;

(j) ``disability annuity'' means a school annuity granted to a school employee who suffers
such physical or mental disability as to be unable to perform school service;

(k) ``standard annuity'' means the school annuity which is granted to a school employee
at the age of 65 years, as prescribed by this act. The standard annuity shall be used as the
basis in computing actuarially equivalent annuities granted at ages prior to 65 years. When-
ever the amount of any benefit is to be determined on the basis of actuarial assumptions,
the assumption shall be specified in a way that precludes employer discretion;

(l) ``service record'' means the individual record kept by the board for each school
employee. It shall show the number of school years of school service, the salary or wages
earned, the date of birth, and such other data as the board may require;

(m) ``age'' and ``attained age'' shall be computed as of September 1 of the calendar year
under consideration;

(n) ``deductions'' means the amounts withheld, as provided in this act, from warrants
issued in payment for school services;

(o) ``actuarial computation'' means computation in accordance with some standard ac-
tuarial table. The board shall determine which one of the standard actuarial tables shall be
used. Whenever the amount of any benefit is to be determined on the basis of actuarial
assumptions, the assumptions shall be specified in a way that precludes employer discretion;
and

(p) ``compensation'' means the same as provided in section 83 and amendments thereto
for purposes of nondiscrimination testing pursuant to the federal internal revenue code of
1986, as in effect on July 1, 1998.

Sec. 9. K.S.A. 1997 Supp. 74-4902, as amended by section 26 of 1997 Senate Bill No.
382, is hereby amended to read as follows: 74-4902. As used in articles 49 and 49a of chapter
74 and amendments thereto, unless otherwise provided or the context otherwise requires:

(1) ``Accumulated contributions'' means the sum of all contributions by a member to
the system which are credited to the member's account, with interest allowed thereon;

(2) ``acts'' means ~~K.S.A. 74-4901 to 74-4929, inclusive,~~ the provisions of articles 49 and
49a of the Kansas Statutes Annotated and amendments thereto;

(3) ``actuarial equivalent'' means an annuity or benefit of equal value to the accumulated
contributions, annuity or benefit, when computed upon the basis of the actuarial tables in
use by the system. Whenever the amount of any benefit is to be determined on the basis of
actuarial assumptions, the assumptions shall be specified in a way that precludes employer
discretion;

(4) ``actuarial tables'' means the actuarial tables approved and in use by the board at
any given time;

(5) ``actuary'' means the actuary or firm of actuaries employed or retained by the board
at any given time;

(6) ``agent'' means the individual designated by each participating employer through
whom system transactions and communication are directed;

(7) ``beneficiary'' means any natural person or persons or estate named by a member to
receive any benefits as provided for by this act. Designations of beneficiaries by a member
who is a member of more than one retirement system made on or after July 1, 1987, shall
be the basis of any benefits payable under all systems unless otherwise provided by law.
Except as otherwise provided by subsection (33) of this section, if there is no named ben-
eficiary living at time of member's death, any benefits provided for by this act shall be paid
to: (A) The member's surviving spouse; (B) the member's dependent child or children; (C)
the member's dependent parent or parents; (D) the member's nondependent child or chil-
dren; (E) the member's nondependent parent or parents; (F) the estate of the deceased
member; in the order of preference as specified in this subsection. ~~Any payment made to~~
~~a named beneficiary shall be a full discharge and release to the system from any further~~
~~claims. Any payment made to a beneficiary as provided in clauses (A), (B), (C), (D), (E) or~~
~~(F) of this subsection, as determined by the board, shall be a full discharge and release to~~
~~the system from any further claims. Whenever any payment is payable to more than one~~
~~beneficiary such payment shall be made to such beneficiaries jointly. Any benefits payable~~
~~to a beneficiary or beneficiaries who are minor children or incompetent persons shall be~~
~~made in the name of the beneficiary or beneficiaries and delivered to the lawfully appointed~~
~~conservator of such beneficiaries who was nominated by will or as otherwise provided by~~
~~law, except that in those cases where the benefit involves only the payment of the member's~~
~~accumulated contributions with interest as provided by this act in an amount not to exceed~~
~~$500, the board is hereby authorized in its discretion without the appointment of a conser-~~
~~vator or the giving of a bond to pay such amount as is due to the minor or minors themselves,~~
~~any payment so made shall be a full discharge and release to the system from any further~~
~~claims~~;

(8) ``board of trustees,'' ``board'' or ``trustees'' means the managing body of the system
which is known as the Kansas public employees retirement system board of trustees;

(9) ``compensation'' means, except as otherwise provided, all salary, wages and other
remuneration payable to a member for personal services performed for a participating em-
ployer, including maintenance or any allowance in lieu thereof provided a member as part
of compensation, but not including reimbursement for travel or moving expenses or on and
after July 1, 1994, payment pursuant to an early retirement incentive program made prior
to the retirement of the member. Beginning with the employer's fiscal year which begins
in calendar year 1991 or for employers other than the state of Kansas, beginning with the
fiscal year which begins in calendar year 1992, when the compensation of a member who
remains in substantially the same position during any two consecutive years of participating
service used in calculating final average salary is increased by an amount which exceeds
15%, then the amount of such increase which exceeds 15% shall not be included in com-
pensation, except that (A) any amount of compensation for accumulated sick leave or va-
cation or annual leave paid to the member, (B) any increase in compensation for any member
due to a reclassification or reallocation of such member's position or a reassignment of such
member's job classification to a higher range or level and (C) any increase in compensation
as provided in any contract entered into prior to January 1, 1991, and still in force on the
effective date of this act, pursuant to an early retirement incentive program as provided in
K.S.A. 72-5395 et seq. and amendments thereto, shall be included in the amount of com-
pensation of such member used in determining such member's final average salary and shall
not be subject to the 15% limitation provided in this subsection. Any contributions by such
member on the amount of such increase which exceeds 15% which is not included in
compensation shall be returned to the member. Unless otherwise provided by law, beginning
with the employer's fiscal year coinciding with or following July 1, 1985, compensation shall
include any amounts for tax sheltered annuities or deferred compensation plans. Beginning
with the employer's fiscal year which begins in calendar year 1991, compensation shall
include amounts under sections 403b, 457 and 125 of the federal internal revenue code of
1986 and, as the board deems appropriate, any other section of the federal internal revenue
code of 1986 which defers or excludes amounts from inclusion in income. For purposes of
applying limits under the federal internal revenue code ``compensation'' shall have the mean-
ing as provided in section 83 and amendments thereto;

(10) ``credited service'' means the sum of participating service and prior service and in
no event shall credited service include any service which is credited under another retire-
ment plan authorized under any law of this state;

(11) ``dependent'' means a parent or child of a member who is dependent upon the
member for at least 1/2 of such parent or child's support;

(12) ``effective date'' means the date upon which the system becomes effective by op-
eration of law;

(13) ``eligible employer'' means the state of Kansas, and any county, city, township,
special district or any instrumentality of any one or several of the aforementioned or any
noncommercial public television or radio station located in this state which receives state
funds allocated by the Kansas public broadcasting commission whose employees are covered
by social security. If a class or several classes of employees of any above defined employer
are not covered by social security, such employer shall be deemed an eligible employer only
with respect to such class or those classes of employees who are covered by social security;

(14) ``employee'' means any appointed or elective officer or employee of a participating
employer whose employment is not seasonal or temporary and whose employment requires
at least 1,000 hours of work per year, but not including: (A) ~~Any person covered by or~~
~~eligible for or who will become eligible for a retirement annuity under the provisions of~~
~~K.S.A. 74-4925 and amendments thereto except as otherwise specifically provided in sub-~~
~~section (3) of K.S.A. 74-4925 and amendments thereto and this subsection; (B)~~ Any em-
ployee who is a contributing member of the United States civil service retirement system;
~~(C) any employee of an eligible employer who is a participant in public service employment~~
~~under title II and title VI of the federal comprehensive employment and training act of~~
~~1973; (D)~~ (B) any employee who is a contributing member of the federal employees retire-
ment system; (C) any employee who is a leased employee of a participating employer.
``Leased employee'' means the same as provided in section 414 of the federal internal rev-
enue code; ~~(E)~~ and (D) any employee or class of employees specifically exempted by law.
After June 30, 1975, no person who is otherwise eligible for membership in the Kansas
public employees retirement system shall be barred from such membership by reason of
coverage by, eligibility for or future eligibility for a retirement annuity under the provisions
of K.S.A. 74-4925 and amendments thereto, except that no person shall receive service
credit under the Kansas public employees retirement system for any period of service for
which benefits accrue or are granted under a retirement annuity plan under the provisions
of K.S.A. 74-4925 and amendments thereto. After June 30, 1982, no person who is otherwise
eligible for membership in the Kansas public employees retirement system shall be barred
from such membership by reason of coverage by, eligibility for or future eligibility for any
benefit under another retirement plan authorized under any law of this state, except that
no such person shall receive service credit under the Kansas public employees retirement
system for any period of service for which any benefit accrues or is granted under any such
retirement plan. Employee shall include persons who are in training at or employed by, or
both, a sheltered workshop for the blind operated by the secretary of social and rehabilitation
services. The entry date for such persons shall be the beginning of the first pay period of
the fiscal year commencing in calendar year 1986. Such persons shall be granted prior
service credit in accordance with K.S.A. 74-4913 and amendments thereto. However, such
persons classified as home industry employees shall not be covered by the retirement system.
Employees shall include any member of a board of county commissioners of any county and
any council member or commissioner of a city whose compensation is equal to or exceeds
$5,000 per year;

(15) ``entry date'' means the date as of which an eligible employer joins the system. The
first entry date pursuant to this act is January 1, 1962;

(16) ``executive secretary'' means the managing officer of the system employed by the
board under this act;

(17) ``final average salary'' means in the case of a member who retires prior to January
1, 1977, and in the case of a member who retires after January 1, 1977, and who has less
than five years of participating service after January 1, 1967, the average highest annual
compensation paid to such member for any five years of the last 10 years of participating
service immediately preceding retirement or termination of employment, or in the case of
a member who retires on or after January 1, 1977, and who has five or more years of
participating service after January 1, 1967, the average highest annual compensation paid
to such member on or after January 1, 1967, for any five years of participating service
preceding retirement or termination of employment, or, in any case, if participating service
is less than five years, then the average annual compensation paid to the member during
the full period of participating service, or, in any case, if the member has less than one
calendar year of participating service such member's final average salary shall be computed
by multiplying such member's highest monthly salary received in that year by 12; in the
case of a member who became a member under subsection (3) of K.S.A. 74-4925 and
amendments thereto, or who became a member with a participating employer as defined
in subsection (3) of K.S.A. 74-4931 and amendments thereto and who elects to have com-
pensation paid in other than 12 equal installments, such compensation shall be annualized
as if the member had elected to receive 12 equal installments for any such periods preceding
retirement; in the case of a member who retires after July 1, 1987, the average highest
annual compensation paid to such member for any four years of participating service pre-
ceding retirement or termination of employment; in the case of a member who retires on
or after July 1, 1993, who was first hired as an employee, as defined in subsection (14) of
K.S.A. 74-4902 and amendments thereto, prior to July 1, 1993, the average highest annual
compensation, as defined in subsection (9), paid to such member for any four years of
participating service preceding retirement or termination of employment or the average
highest annual salary, as defined in subsection (34), paid to such member for any three years
of participating service preceding retirement or termination of employment, whichever is
greater; and in the case of a member who retires on or after July 1, 1993, and who is first
hired as an employee, as defined in subsection (14) of K.S.A. 74-4902 and amendments
thereto, on or after July 1, 1993, the average highest annual salary, as defined in subsection
(34), paid to such member for any three years of participating service preceding retirement
or termination of employment. Final average salary shall not include any purchase of par-
ticipating service credit by a member as provided in subsection (2) of K.S.A. 74-4919h and
amendments thereto which is completed within five years of retirement. For any application
to purchase or repurchase service credit for a certain period of service as provided by law
received by the system after May 17, 1994, for any member who will have contributions
deducted from such member's compensation at a percentage rate equal to two or three
times the employee's rate of contribution or will begin paying to the system a lump-sum
amount for such member's purchase or repurchase and such deductions or lump-sum pay-
ment commences after the commencement of the first payroll period in the third quarter,
``final average salary'' shall not include any amount of compensation or salary which is based
on such member's purchase or repurchase. Any application to purchase or repurchase mul-
tiple periods of service shall be treated as multiple applications. For purposes of this sub-
section, the date that such member is first hired as an employee for members who are
employees of employers that elected to participate in the system on or after January 1, 1994,
shall be the date that such employee's employer elected to participate in the system. In the
case of any former member who was eligible for assistance pursuant to K.S.A. 74-4925 and
amendments thereto prior to July 1, 1998, for the purpose of calculating final average salary
of such member, such member's final average salary shall be based on such member's salary
while a member of the system or while eligible for assistance pursuant to K.S.A. 74-4925
and amendments thereto, whichever is greater;

(18) ``fiscal year'' means, for the Kansas public employees retirement system, the period
commencing July 1 of any year and ending June 30 of the next;

(19) ``Kansas public employees retirement fund'' means the fund created by this act for
payment of expenses and benefits under the system and referred to as the fund;

(20) ``leave of absence'' means a period of absence from employment without pay, au-
thorized and approved by the employer, and which after the effective date does not exceed
one year;

(21) ``member'' means an eligible employee who is in the system and is making the
required employee contributions~~, or~~; any former employee who has made the required
contributions to the system and has not received a refund if such member is within five
years of termination of employment with a participating employer; or any former employee
who has made the required contributions to the system, has not yet received a refund and
has been granted a vested benefit;

(22) ``military service'' means service in the uniformed forces of the United States, for
which retirement benefit credit must be given under the provisions of USERRA or service
in the armed forces of the United States or in the commissioned corps of the United ~~State~~
States public health service, which service is immediately preceded by a period of employ-
ment as an employee or by the entering into of an employment contract with a participating
employer and is followed by return to employment as an employee with the same or another
participating employer within 12 months immediately following discharge from such military
service, except that if the board determines that such return within 12 months was made
impossible by reason of a service-connected disability, the period within which the employee
must return to employment with a participating employer shall be extended not more than
two years from the date of discharge or separation from military service;

(23) ``normal retirement date'' means the date on or after which a member may retire
with full retirement benefits pursuant to K.S.A. 74-4914 and amendments thereto;

(24) ``participating employer'' means an eligible employer who has agreed to make con-
tributions to the system on behalf of its employees;

(25) ``participating service'' means the period of employment after the entry date for
which credit is granted a member;

(26) ``prior service'' means the period of employment of a member prior to ~~such mem-~~
~~ber's~~ the entry date for which credit is granted a member under this act;

(27) ``prior service annual salary'' means the highest annual salary, not including any
amounts received as payment for overtime or as reimbursement for travel or moving ex-
pense, received for personal services by the member from the current employer in any one
of the three calendar years immediately preceding January 1, 1962, or the entry date of the
employer, whichever is later, except that if a member entered the employment of the state
during the calendar year 1961, the prior service annual salary shall be computed by multi-
plying such member's highest monthly salary received in that year by 12;

(28) ``retirant'' means a member who has retired under this system;

(29) ``retirement benefit'' means a monthly income or the actuarial equivalent thereof
paid in such manner as specified by the member pursuant to this act or as otherwise allowed
to be paid at the discretion of the board, with benefits accruing from the first day of the
month coinciding with or following retirement and ending on the last day of the month in
which death occurs. Upon proper identification a surviving spouse may negotiate the warrant
issued in the name of the retirant;

(30) ``retirement system'' or ``system'' means the Kansas public employees retirement
system as established by this act and as it may be amended;

(31) ``social security'' means the old age, survivors and disability insurance section of
the federal social security act;

(32) ``total disability'' means a physical or mental disability which prevents the member
from engaging, for remuneration or profit, in any occupation for which the member is
reasonably suited by education, training or experience;

(33) ``trust'' means an express trust, created by a trust instrument, including a will,
designated by a member to receive payment of the insured death benefit under K.S.A.
74-4927 and amendments thereto and payment of the member's accumulated contributions
under subsection (1) of K.S.A. 74-4916 and amendments thereto. A designation of a trust
shall be filed with the board. If there is a designated trust at the time of the member's
death, the insured death benefit for the member under K.S.A. 74-4927 and amendments
thereto and the member's accumulated contributions under subsection (1) of K.S.A. 74-
4916 and amendments thereto shall be paid to the trust in lieu of the member's beneficiary.
If no will is admitted to probate within six months after the death of the member or no
trustee qualifies within such six months or if the designated trust fails, for any reason what-
soever, the insured death benefit under K.S.A. 74-4927 and amendments thereto and the
member's accumulated contributions under subsection (1) of K.S.A. 74-4916 and amend-
ments thereto shall be paid in accordance with the provisions of subsection (7) of this section
as in other cases where there is no named beneficiary living at the time of the member's
death and any payments so made shall be a full discharge and release to the system from
any further claims;

(34) ``salary'' means all salary and wages payable to a member for personal services
performed for a participating employer, including maintenance or any allowance in lieu
thereof provided a member as part of salary. Salary shall not include reimbursement for
travel or moving expenses, payment for accumulated sick leave or vacation or annual leave,
severance pay or any other payments to the member determined by the board to not be
payments for personal services performed for a participating employer constituting salary
or on and after July 1, 1994, payment pursuant to an early retirement incentive program
made prior to the retirement of the member. When the salary of a member who remains
in substantially the same position during any two consecutive years of participating service
used in calculating final average salary is increased by an amount which exceeds 15%, then
the amount of such increase which exceeds 15% shall not be included in salary. Any con-
tributions by such member on the amount of such increase which exceeds 15% which is not
included in compensation shall be returned to the member. Unless otherwise provided by
law, salary shall include any amounts for tax sheltered annuities or deferred compensation
plans. Salary shall include amounts under sections 403b, 457 and 125 of the federal internal
revenue code of 1986 and, as the board deems appropriate, any other section of the federal
internal revenue code of 1986 which defers or excludes amounts from inclusion in income.
For purposes of applying limits under the federal internal revenue code ``salary'' shall have
the meaning as provided in section 83 and amendments thereto. In any case, if participating
service is less than three years, then the average annual salary paid to the member during
the full period of participating service, or, in any case, if the member has less than one
calendar year of participating service such member's final average salary shall be computed
by multiplying such member's highest monthly salary received in that year by 12;

(35) ``federal internal revenue code'' means the federal internal revenue code of 1954
or 1986, as in effect on July 1, 1998, and as applicable to a governmental plan; and

(36) ``USERRA'' means the federal uniformed services employment and reemployment
rights act of 1994 as in effect on July 1, 1998.

Sec. 10. K.S.A. 1997 Supp. 74-4904 is hereby amended to read as follows: 74-4904. (1)
The system may sue and be sued in its official name, but its trustees, officers, employees
and agents shall not be personally liable for acts of the system unless such person acted with
willful, wanton or fraudulent misconduct or intentionally tortious conduct. Any agreement
in settlement of litigation involving the system and the investment of moneys of the fund is
a public record as provided in K.S.A. 45-215 et seq. and amendments thereto and subject
to the provisions of that act. The service of all legal process and of all notices which may be
required to be in writing, whether legal proceedings or otherwise, shall be had on the
executive secretary at such executive secretary's office. All actions or proceedings directly
or indirectly against the system shall be brought in Shawnee county.

(2) Any person aggrieved by any order or decision of the board made without a hearing,
may, within 30 days after notice of the order or decision of the board make written request
to the board for a hearing thereon. The board shall hear such party or parties in accordance
with the provisions of the Kansas administrative procedure act at its next regular meeting
or at a special meeting within 60 days after receipt of such request. For the purpose of any
hearing under this section, the board may appoint one or more presiding officers. Any such
presiding officer shall be a member of the board or, an employee of the board or any other
person designated by the board to serve as such presiding officer. Any such appointment
shall apply to a particular hearing or to a set or class of hearings as specified by the board
in making such appointment. The board shall review an initial order resulting from a hearing
under this section. Any member of the board who serves as a presiding officer shall be
reimbursed for actual and necessary expenses and shall receive compensation in an amount
fixed by the board not to exceed the per diem compensation allowable for members of the
board. The board is hereby authorized to enter into a contract with any other person des-
ignated by the board to serve as a presiding officer who is not a member or employee of the
board and to provide for reimbursement for actual and necessary expenses and compensation
for such person serving as a presiding officer.

Sec. 11. K.S.A. 1997 Supp. 74-4905 is hereby amended to read as follows: 74-4905. (a)
On July 1, 1993, the board of trustees of the Kansas public employees retirement system,
as such board existed on June 30, 1993, is hereby abolished. On July 1, 1993, there is hereby
established a new board of trustees of the Kansas public employees retirement system. Such
board established on July 1, 1993, shall consist of nine members, as follows:

(1) Six appointed members, four appointed by the governor subject to confirmation by
the senate as provided in K.S.A. 75-4315b and amendments thereto, one appointed by the
president of the senate and one appointed by the speaker of the house of representatives.
Except as provided by K.S.A. ~~1996~~ 1997 Supp. 46-2601, no person appointed to the board
whose appointment is subject to confirmation, shall exercise any power, duty or function as
a member of the board until confirmed by the senate. No more than two members of the
board whose appointment is subject to confirmation shall be from the same political party;

(2) two retirement system members elected by the members and retirants of the system
as provided in subsection (12) of K.S.A. 74-4909 and amendments thereto. As provided in
this subsection, only active and retired members of the system shall be eligible to be elected
to the board and only active and retired members of the system shall be eligible to elect
the two retirement system members pursuant to this subsection. Inactive members shall
not be eligible to be elected to the board nor to elect the two retirement system members
elected pursuant to this subsection. If a member elected to the board as provided in this
subsection becomes inactive, such member is disqualified from service on the board and such
member's board position shall be vacant and such vacancy shall be filled as provided in
subsection (b)(1). Of the two retirement system members elected pursuant to this subsec-
tion, one shall be a member of the retirement system who is in school employment as
provided in K.S.A. 74-4931 et seq. and amendments thereto and one shall be a member of
the retirement system other than a member who is in school employment. For purposes of
this subsection, retirement system means the Kansas public employees retirement system,
the Kansas police and firemen's retirement system and the retirement system for judges;
and

(3) the state treasurer.

(b) (1) Except as provided by this paragraph and paragraph (2), all members of the
board as provided in subsection (a)(1) and (a)(2) shall serve four-year terms, except that of
the members first appointed by the governor, two shall be appointed for two-year terms
and the member appointed by the speaker of the house of representatives shall be appointed
for a two-year term. The governor shall designate the term for which each of the members
first appointed shall serve. All members appointed to fill vacancies in the membership of
the board and all members appointed to succeed members appointed to membership on
the board shall be appointed in like manner as that provided for the original appointment
of the member succeeded. All members appointed to fill vacancies of a member of the
board appointed by the governor, the president of the senate or the speaker of the house
of representatives shall be appointed to fill the unexpired term of such member. All vacancies
on the board by a member elected by the members and retirants of the system shall be
filled by the board as provided by rules and regulations adopted as provided in subsection
(12) of K.S.A. 74-4909 and amendments thereto.

(2) Except as provided in K.S.A. ~~1996~~ 1997 Supp. 46-2601, no person appointed to the
board by the governor shall exercise any power, duty or function as a member of the board
until confirmed by the senate. The terms of members appointed by the governor who are
serving on the board on the effective date of this act shall expire on January 15, of the year
in which such member's term would have expired under the provisions of this section prior
to amendment by this act. Thereafter, members shall be appointed for terms of four years
and until their successors are appointed and confirmed.

(c) The board shall elect a chairperson of the board at the first regular meeting held on
or after July 1, 1993, and at each annual meeting thereafter from the members of the board.
The chairperson shall preside over meetings of the board and perform such other duties as
required by the board.

(d) The chairperson shall appoint another board member as vice-chairperson, and the
vice-chairperson shall perform the duties of chairperson in the absence of the chairperson
or upon the chairperson's inability or refusal to act.

(e) The six members appointed pursuant to subsection (a)(1) shall have demonstrated
experience in the financial affairs of a public or private organization or entity which employs
100 or more employees or had at least five years' experience in the field of investment
management or analysis, actuarial analysis or administration of an employee benefit plan.

(f) No person shall serve on the board if such person has knowingly acquired a sub-
stantial interest in any nonpublicly traded investment made with moneys of the fund. Any
such person who knowingly acquires such an interest shall vacate such member's position
on the board and shall be guilty of a class A misdemeanor. For purposes of this subsection,
``substantial interest'' means any of the following:

(1) If an individual or an individual's spouse, either individually or collectively, has
owned within the preceding 12 months a legal or equitable interest exceeding $5,000 or 5%
of any business, whichever is less, the individual has a substantial interest in that business.

(2) If an individual or an individual's spouse, either individually or collectively, has re-
ceived during the preceding calendar year compensation which is or will be required to be
included as taxable income on federal income tax returns of the individual and spouse in an
aggregate amount of $2,000 from any business or combination of businesses, the individual
has a substantial interest in that business or combination of businesses.

(3) If an individual or an individual's spouse holds the position of officer, director,
associate, partner or proprietor of any business, the individual has a substantial interest in
that business, irrespective of the amount of compensation received by the individual or
individual's spouse.

(4) If an individual or an individual's spouse receives compensation which is a portion
or percentage of each separate fee or commission paid to a business or combination of
businesses, the individual has a substantial interest in any client or customer who pays fees
or commissions to the business or combination of businesses from which fees or commissions
the individual or the individual's spouse, either individually or collectively, received an ag-
gregate of $2,000 or more in the preceding calendar year.

(5) If an individual or an individual's spouse has received a loan from or received fi-
nancing from any bank, savings and loan, credit union or any other financial institution in
an amount which exceeds $2,000, the individual has a substantial interest in that financial
institution.

As used in this subsection, ``client or customer'' means a business or combination of
businesses.

Any person who serves on the board shall fully disclose any substantial interest that such
person has in any publicly traded investment made with moneys of the fund.

(g) No person who serves on the board shall be employed for a period of two years
commencing on the date the person no longer serves on the board and ending two years
after such date with any organization in which moneys of the fund were invested, except
that the employment limitation contained in this subsection shall not apply if such person's
employment is with an organization whose stock or other evidences of ownership are traded
on the public stock or bond exchanges.

(h) All members of the board named, appointed or elected to the board shall be subject
to an investigation by the Kansas bureau of investigation or other criminal justice agencies.
Information to be obtained during such investigation shall include criminal history record
information, including arrest and conviction data, criminal intelligence information and in-
formation relating to criminal and background investigations as necessary to determine qual-
ifications of such member. Such information shall be forwarded to the senate committee
specified by the president of the senate for such committee's consideration and other than
conviction data, shall be confidential and shall not be disclosed except to members and
employees of the committee as necessary to determine qualifications of such member. The
committee, in accordance with K.S.A. 75-4319 and amendments thereto shall recess for a
closed or executive meeting to receive and discuss information received by the committee
pursuant to this subsection.

(i) All of the powers, duties and functions of the board of trustees of the Kansas public
employees retirement system as such board existed prior to July 1, 1993, are hereby trans-
ferred to and conferred and imposed upon the board of trustees established pursuant to
this act. The board of trustees of the Kansas public employees retirement system established
pursuant to this act shall be the successor in every way of the powers, duties and functions
of the board of trustees existing prior to July 1, 1993, in which the same were vested prior
to July 1, 1993.

Sec. 12. K.S.A. 1997 Supp. 74-4907 is hereby amended to read as follows: 74-4907. (1)
The principal office of the system shall be in quarters at Topeka, Kansas. ~~Offices shall be~~
~~assigned to the system by the secretary of administration.~~

(2) The board shall keep a complete record of all proceedings which shall be open at
all reasonable hours to inspection. Any agreement in settlement of litigation involving the
system and the investment of moneys of the fund shall be open for inspection by any person
and suitable facilities shall be made available by the system for this purpose as provided by
the provisions of K.S.A. 45-215 et seq. and amendments thereto. A report covering the
operation of the system for the past fiscal year, including income and disbursements, and
of the financial condition of the system at the end of such fiscal year, showing the valuation
of assets and investments and liabilities of the system, shall be delivered after the end of
each fiscal year and prior to January 1 of the next fiscal year to the governor and to the
chairperson of the legislative coordinating council, to the secretary of the senate and to the
chief clerk of the house of representatives and shall be made readily available to the mem-
bers and participating employers of the system. Such report shall include the financial state-
ments of the system and supporting schedules, presented in accordance with generally ac-
cepted accounting principles. Such supporting schedules presented in the annual report
shall include a listing which reports the cost and the fiscal year end lower amount of cost
or market value for each individual alternative investment of the system which was initiated
on or after July 1, 1991, and reports, in aggregate, the cost and the fiscal year end lower
amount of cost or market value for those alternative investments of the system initiated
prior to July 1, 1991. The retirement system shall maintain a listing which reports the cost
and the fiscal year end lower amount of cost or market value for each individual alternative
investment of the system which was initiated prior to July 1, 1991, and such listing shall be
available for review in camera by the joint committee on pensions, investments and benefits
and as may be required under the provisions of the legislative post audit act.

Sec. 13. K.S.A. 1997 Supp. 74-4908 is hereby amended to read as follows: 74-4908. (1)
The board shall appoint an executive secretary and shall establish the compensation therefor.
Subject to the direction of the board, the executive secretary shall be the managing officer
of the system and as such shall have charge of the office, records and supervision and
direction of the employees of the system. The executive secretary shall be in the unclassified
service under the Kansas civil service act.

(2) The executive secretary shall recommend to the board the administrative organi-
zation, the number and qualifications of employees necessary to carry out the intent of this
act and the directions of the board. Upon approval of the board, the executive secretary is
authorized to employ such persons in accordance with the Kansas civil service act.

(3) The board of trustees shall select and employ or retain a qualified actuary who shall
serve at its pleasure as its technical advisor on matters regarding operation of the system.
The actuary shall:

(a) Make an annual valuation of the liabilities and reserves of the system, and a deter-
mination of the contributions required by the system to discharge its liabilities and admin-
istrative costs under this act, and recommend to the board rates of employer contributions
required to establish and maintain the system on an actuarial reserve basis. Such recom-
mended employer contributions shall not be based on any other purpose outside of the
needs of the system as prescribed by this subsection.

(b) As soon after the effective date as practicable and once every three years thereafter,
make a general investigation of the actuarial experience under the system including mor-
tality, retirement, employment turnover and interest, and recommend actuarial tables for
use in valuations and in calculating actuarial equivalent values based on such investigation.

(c) Cooperate with and provide any assistance to the actuary, the legislative coordinating
council and the joint committee on pensions, investments and benefits related to the in-
dependent actuarial audit and evaluation as provided in K.S.A. ~~1996~~ 1997 Supp. 74-4908a
and amendments thereto.

(d) Perform such other duties as may be assigned by the board.

(4) The attorney general of the state shall furnish such legal services as may be necessary
upon receipt of a request from the board, except that legal services may be furnished by
other counsel as the board in its discretion deems necessary and prudent.

(5) The board shall employ or retain qualified investment counsel or counselors or may
negotiate with a trust company to assist and advise in the judicious investment of funds as
herein provided.

(6) The board may appoint a deputy executive secretary, an investment officer, an in-
vestment analyst, a real estate manager, a direct placement manager, a chief fiscal officer,
a member services officer, an attorney, an assistant investment officer and an information
resource officer to advise and assist the board in the performance of powers, duties and
functions relating to the management and investment of the fund and in such other matters
as may be directed by the board. Such appointed officers and employees shall be in the
unclassified service under the Kansas civil service act. The compensation of such appointed
officers and employees shall be established by the board.

Sec. 14. K.S.A. 1997 Supp. 74-4910 is hereby amended to read as follows: 74-4910. (1)
An eligible employer may join the system on January 1 of any year. Application for affiliation
shall be in the form of a resolution approved by the governing or legislative body of the
eligible employer or by any other body or officer authorized by law or recognized by the
board to approve the action. No city or township shall become a participating employer
except by the adoption of a resolution therefor, which shall be published once in the official
city or township newspaper or, if there is none, in a newspaper of general circulation in the
city or county. No such resolution shall take effect until 60 days after its final publication.
If within 60 days of its final publication a petition signed by electors equal in number to not
less than 10% of the electors who voted at the last preceding regular election in the township,
in the case of townships, the last regular city election in the city, in the case of cities is filed
in the office of the clerk of such city, or township demanding that such resolution be sub-
mitted to a vote of the electors, the resolution shall not take effect until submitted to a
referendum and approved by a majority of the electors voting thereon. A 2/3 vote of the
members-elect of the governing body shall be necessary for the affiliation of any eligible
employer other than a city or township. An application for affiliation with the system shall
be filed with the board not later than 30 days prior to the date participation is to begin,
except as such time limit may be extended by the board. Upon the filing of a certified copy
of such resolutions with the board an election pursuant to this section shall be irrevocable,
and the employer shall become a participating employer on January 1 of the year immedi-
ately following the filing of such election with the board.

(2) The state of Kansas in its capacity as an eligible employer, shall become, by operation
of law, a participating employer on the first entry date. The Kansas turnpike authority shall
not become a participating employer nor shall its officers or employees be covered by the
retirement system until such time as its governing body by a 2/3 vote of the members of such
governing body adopts a resolution for affiliation and files the same in the same manner
and on the same conditions as in the case of an eligible employer other than a city or
township.

(3) If a participating employer is paying or has paid the salary or other compensation
of the judge, clerk or any other employee, whether elective or appointive, such judge, clerk
or other employee of such court or courts, whether elective or appointive, shall be deemed
an employee of the participating employer. Such employee shall be governed by the pro-
visions governing other eligible employees of such participating employer. Any participating
employer which has not heretofore included such employees as eligible employees under
the retirement system shall on the first day of the month coinciding with or following the
effective date of this act include such employees if otherwise eligible as eligible employees
under the retirement system. Such employees, whether elective or appointive, if employed
on the employer's entry date may elect to pay forthwith the employee contributions from
the employer's entry date and thereby be governed by the provisions governing other em-
ployees employed by the participating employer on entry date except that no such employee
shall be considered to be new employees on the first day of the month coinciding with or
following the effective date of this act and commence making employee contributions in
compliance with other provisions governing the retirement system and the participating
employer shall make the employer contributions in accordance with the alternative elected
by the employee and other provisions governing the retirement system.

(4) Any employer whose employees are covered by social security and who otherwise
do not meet the provisions of subsection (13) of K.S.A. 74-4902 and amendments thereto
may elect to affiliate under this section upon meeting the definition of a governmental entity
or instrumentality as determined by the system. If, subsequent to such determination, the
United States internal revenue service determines that such employer does not meet the
definition of a governmental entity or instrumentality, such affiliation shall be null and void
and all employee accrued rights associated with such affiliation shall be null and void and
the system shall refund such amounts presently credited to each employee's account and
an equivalent amount to the employer for each employee. The provisions of this subsection
shall apply to current and future participating employers.

(5) For affiliations on and after January 1, 1999, any eligible employer, prior to the filing
of an application for affiliation under this system, shall request the board of trustees to submit
a proposal for such affiliation including an estimate of the employer's contribution rate
necessary to comply with the actuarial standard of this system. Such eligible employer shall
furnish all necessary data from which such proposal is prepared, and shall pay all costs
involved.

Sec. 15. K.S.A. 1997 Supp. 74-4911, as amended by section 28 of 1997 Senate Bill No.
382, is hereby amended to read as follows: 74-4911. (1) Any employee of a participating
employer other than an elected official on the entry date of such employer shall be a member
of the system on either the entry date or the first day of the payroll period coinciding with
or following the completion of one year of service, whichever is later. For purposes of this
act occasional breaks in service which shall not exceed an aggregate of 10 days in any such
year shall not constitute a break in service for purposes of determining the membership
date of such employee.

(2) Except as otherwise provided in this subsection, any employee other than an elected
official who is employed by a participating employer after the entry date of such employer
shall be a member of the system on the first day of the payroll period coinciding with or
following completion of one year of continuous service. For purposes of this act, occasional
breaks in service which shall not exceed an aggregate of 10 days in any such year shall not
constitute a break in continuous service for purposes of determining the membership date
of such employee. For purposes of this subsection, any employee of a local governmental
unit which has its own pension plan who becomes an employee of a participating employer
as a result of a merger or consolidation of services provided by local governmental units,
which occurred on January 1, 1994, may count service with such local governmental unit in
determining whether such employee has met the one year of continuous service requirement
contained in this subsection.

(3) Any employee who is an elected official and is eligible to join the system shall file,
within 90 days after taking the oath of office, an irrevocable election to become or not to
become a member of the system. Such election shall become effective immediately upon
making such election, if such election is made within 14 days of taking the oath of office or,
otherwise, on the first day of the first payroll period of the first quarter following receipt of
the election in the office of the retirement system. In the event that such elected official
fails to file the election to become a member of the retirement system, it shall be presumed
that such person has elected not to become a member.

(4) Except as otherwise required by USERRA, any employee other than an elected
official who is in military service or on leave of absence on the entry date of such employee's
employer shall become a member of the system upon returning to active employment or
on the first day of the payroll period coinciding with or following the completion of one
year of service, whichever is later. For purposes of this act, occasional breaks in service
which shall not exceed an aggregate of 10 days in any such year shall not constitute a break
in service for purposes of determining the membership date of such employee.

(5) Any employee of the state of Kansas other than an elected official, who is receiving
or is eligible for assistance by the state board of regents in the purchase of a retirement
annuity under K.S.A. 74-4925, and amendments thereto, and who becomes ineligible for
such assistance because such employee's position is reclassified to a position in the classified
service under the Kansas civil service act, or who becomes ineligible for such assistance
because such person accepts and transfers to a position in the classified service under the
Kansas civil service act shall be a member of the system on the first day of the payroll period
coinciding with or following the effective date of such reclassification or transfer. Any such
employee who became ineligible for such assistance prior to the effective date of this act
because of such a reclassification or such a transfer occurring prior to the effective date of
this act and who is not a member of the system on the effective date of this act shall be a
member of the system on the first day of the payroll period coinciding with or following the
effective date of this act.

(6) Any employee of the state board of regents or of an educational institution under
its management, other than an elected official, who is a member of the system and who
becomes ineligible to be a member of the system because such employee's position is re-
classified to a position under the Kansas civil service act which is eligible for assistance by
the state board of regents in the purchase of a retirement annuity under K.S.A. 74-4925
and amendments thereto, or who becomes ineligible to be a member of the system because
such employee transfers to a position under the Kansas civil service act which is eligible for
such assistance, shall become eligible for such assistance in accordance with the provisions
of K.S.A. 74-4925 and amendments thereto, unless such employee files a written election
in the office of the retirement system, in the form and manner prescribed by the board of
trustees thereof, to remain a member of the system prior to the first day of the first complete
payroll period occurring after the effective date of such reclassification or transfer. Failure
to file such written election shall be presumed to be an election not to remain a member
of the system and to become eligible for assistance by the state board of regents in the
purchase of a retirement annuity under K.S.A. 74-4925 and amendments thereto. Such
election, whether to remain a member of the system or to become eligible for such assis-
tance, shall be effective as of the effective date of such reclassification or transfer, and shall
be irrevocable.

(7) Any elected official who at the time of becoming an elected official is already a
member of the system by being or having been an employee of a participating employer
shall continue as a member of the system.

Sec. 16. K.S.A. 1997 Supp. 74-4913, as amended by section 33 of 1997 Senate Bill No.
382, is hereby amended to read as follows: 74-4913. (1) Prior service shall be credited as
follows:

(a) A member shall receive full credit for continuous employment prior to the entry
date with such member's employer on the entry date. If the employee was also employed
on March 15~~, 1961, by the employer who is the employee's employer on the employee's~~
~~entry date~~ of the year immediately preceding the entry date of that employer, then all such
previous employment, whether or not continuous, shall be credited; otherwise no credit
shall be granted for employment prior to a break in continuous employment. Any member
or retirant ~~who has been credited with prior service as hereinbefore provided and~~ who was
employed by any participating employer on March 15~~, 1961~~ of the year immediately pre-
ceding the entry date of that employer, may apply to the board on such forms as it may
prescribe for prior service credit with a participating employer other than the member's
entry date employer. Upon receipt of written verification of such employment from the
participating employer, the board ~~may~~ shall grant such additional prior service credit and
with respect to a retirant, shall adjust the amount of the retirement benefit accordingly
commencing with the next monthly benefit payment due following receipt of the written
verification, except that such retirant shall not be entitled to any retroactive adjustment in
the amount of such retirement benefit as a result of the board granting such additional prior
service credit. In the case of any person other than a retirant receiving a retirement benefit,
such person may make application for an adjustment in the benefit amount in the same
manner as a member or retirant, and in such case the adjustment in the benefit amount
shall be determined by the board upon the advice of the actuary, and shall commence with
the next monthly benefit payment due following receipt of the written verification;

(b) leaves of absence and military service shall not be counted as breaks in continuous
employment; however, military service which is immediately preceded and followed by
employment with a participating employer shall be credited, except that after July 1, 1974,
not more than five years' credit for military service shall be granted hereunder to the extent
required under USERRA, but leaves of absence shall not be credited;

(c) any member who was employed in the Kansas state employment service, now a
section of the Kansas division of employment security, during any of the time the Kansas
state employment service was loaned by the state to the federal government (January 1,
1942, for the duration of the emergency period of world war II, which service was returned
to the state by the federal government effective November 16, 1946) shall be entitled to
prior service credit for the time so employed during the period stated for any service ren-
dered under the jurisdiction of the United States employment service for the federal gov-
ernment in like manner as if the employment service had remained under the jurisdiction
of the state of Kansas;

(d) any member who is not otherwise eligible for service credit as provided for in sub-
section (1)(a) may be granted credit for the service upon the attainment of 38 quarters of
participating service;

(e) any member who was employed by the university of Wichita prior to July 1, 1964,
shall be entitled to prior service credit for such time of employment under the Kansas public
employees retirement system, when such employment is not the basis for other pension
rights.

(2) Participating service shall be credited as follows: (a) A member shall receive credit
for participating service with a participating employer in accordance with the rules and
regulations established by the board of trustees, except that no more than one calendar
quarter of participating service shall be credited for any employment within any one calendar
quarter;

(b) leaves of absence and military service shall not count as a break in continuous em-
ployment. In the case of a leave of absence, the member shall leave such member's accu-
mulated contribution on deposit with the fund; however, the period of military service shall
be credited, except that after July 1, 1974, not more than five years' credit for military
service shall be granted hereunder to the extent required under USERRA, but leaves of
absence shall not be credited. Employees who enter the military service from their em-
ployment after the employer's entry date and who have not completed one year of service
at the time of their entry into the military service, shall not become members of the retire-
ment system until they return to the employment of that or another participating employer.
In the case of such employee whose combined public employment and military service does
not equal one year at the time of such employee's return to employment, the date of mem-
bership shall be the first day of the payroll period coinciding with or following the completion
of one combined public employment and military year of service. Such service shall be
granted in accordance with this section;

(c) a period of retirement under the system or a period of total disability, immediately
followed by employment with a participating employer, shall not count as a break in con-
tinuous employment, except that such periods while not employed shall not be credited as
participating service;

(d) termination of employment, followed by employment with a participating employer
within five years after such termination, does not constitute a break in continuous employ-
ment if such person has not withdrawn such person's accumulated contribution. Such period
while not employed shall not be credited as participating service.

(3) In determining the number of years of credited prior service or participating service
a fractional year of six months or more shall be considered as one year and a fractional year
of less than six months shall be disregarded.

Sec. 17. K.S.A. 1997 Supp. 74-4914 is hereby amended to read as follows: 74-4914. (1)
The normal retirement date for a member of the system shall be the first day of the month
coinciding with or following termination of employment with any participating employer
not followed by employment with any participating employer within 30 days and the at-
tainment of age 65 or, ~~commencing July 1, 1986, age 65 or age 60 with the completion of~~
~~35 years of credited service or at any age with the completion of 40 years of credited service,~~
or commencing July 1, 1993, ~~any alternative normal retirement date already prescribed by~~
~~law or~~ age 62 with the completion of 10 years of credited service or the first day of the
month coinciding with or following the date that the total of the number of years of credited
service and the number of years of attained age of the member is equal to or more than 85.
In no event shall a normal retirement date for a member be before six months after the
entry date of the participating employer by whom such member is employed. A member
may retire on the normal retirement date or on the first day of any month thereafter upon
the filing with the office of the retirement system of an application in such form and manner
as the board shall prescribe. Nothing herein shall prevent any person, member or retirant
from being employed, appointed or elected as an employee, appointee, officer or member
of the legislature. Elected officers may retire from the system on any date on or after the
attainment of the normal retirement date, but no retirement benefits payable under this act
shall be paid until the member has terminated such member's office.

(2) No retirant shall make contributions to the system or receive service credit for any
service after the date of retirement.

(3) Any member who is an employee of an affiliating employer pursuant to K.S.A. 74-
4954b and amendments thereto and has not withdrawn such member's accumulated con-
tributions from the Kansas police and firemen's retirement system may retire before such
member's normal retirement date on the first day of any month coinciding with or following
the attainment of age 55.

(4) Any member may retire before such member's normal retirement date on the first
day of any month coinciding with or following termination of employment with any partic-
ipating employer not followed by employment with any participating employer within 30
days and the attainment of age 55 with the completion of 10 years of credited service, but
in no event before six months after the entry date, upon the filing with the office of the
retirement system of an application for retirement in such form and manner as the board
shall prescribe.

(5) If a retirant who retired on or after July 1, 1988, is employed or appointed in or to
any position or office for which compensation for service is paid~~, during calendar years 1988~~
~~through 1990, in an amount equal to $6,000 or more in any one such calendar year; during~~
~~calendar year 1991, in an amount equal to $9,720 or more; during calendar year 1992, in~~
~~an amount equal to $10,200 or more; during calendar year 1993, in an amount equal to~~
~~$10,560 or more; during calendar year 1994, in an amount equal to $11,160 or more; or~~
~~during calendar year 1995 and all calendar years thereafter,~~ in an amount equal to ~~$11,280~~
$15,000 or more in any one such calendar year, by any participating employer for which
such retirant was employed or appointed during the final two years of such retirant's par-
ticipation, such retirant shall not receive any retirement benefit for any month for which
such retirant serves in such position or office. The participating employer shall report to the
system within 30 days of when the compensation paid to the retirant is equal to or exceeds
any limitation provided by this section. Any retirant employed by a participating employer
shall not make contributions nor receive additional credit under such system for such service
except as provided by this section. Upon request of the executive secretary of the system,
the secretary of revenue shall provide such information as may be needed by the executive
secretary to carry out the provisions of this act. The provisions of this subsection shall not
apply to retirants employed as substitute teachers or officers, employees, appointees or
members of the legislature or any other elected officials.

(6) For purposes of this section, any employee of a local governmental unit which has
its own pension plan who becomes an employee of a participating employer as a result of a
merger or consolidation of services provided by local governmental units, which occurred
on January 1, 1994, may count service with such local governmental unit in determining
whether such employee has met the years of credited service requirements contained in
this section.

Sec. 18. K.S.A. 1997 Supp. 74-4914e is hereby amended to read as follows: 74-4914e.
(1) As used in this section:

(a) ``Correctional employee'' means any member of the system who is a security officer
or other employee of the department of corrections and who is in a position for which the
duties and responsibilities involve regular contact with inmates as certified by the secretary
of corrections;

(b) ``disability'' means the total inability to perform permanently the duties of the po-
sition of a correctional employee in which the correctional employee was employed at the
time of disability;

(c) ``service-connected'' means any physical or mental disability resulting from external
force, violence or disease occasioned by an act of duty as a correctional employee and
includes, for any correctional employee after five years of credited service, any death or
disability resulting from a heart disease or disease of the lung or respiratory tract, except
that in the event that the correctional employee ceases to be a contributing member except
by reason of a service-connected disability for a period of six months or more and then again
becomes a contributing member the provision relating to death or disability resulting from
a heart disease or disease of the lung or respiratory tract shall not apply until such correc-
tional employee has again become a contributing member for a period of not less than two
years or unless clear and precise evidence is presented that the heart disease or disease of
the lung or respiratory tract was in fact occasioned by an act of duty as a correctional
employee; and

(d) ``final average salary'' means the average highest annual compensation paid to a
correctional employee for any three of the last five years of participating service immediately
preceding the date of disability, or if participating service is less than three years, then the
average annual compensation paid to the correctional employee during the full period of
participating service or if a correctional employee has less than one calendar year of partic-
ipating service the correctional employee's final average salary shall be computed by mul-
tiplying the correctional employee's highest monthly salary received in that year by 12.

(2) If any active contributing correctional employee becomes totally and permanently
disabled due to service-connected causes as defined in subsection (1), such correctional
employee shall be retired and the following benefits shall become payable and shall continue
until the correctional employee's death or until the correctional employee recovers from
the disability if a report of the event in a form acceptable to the board is filed in the office
of the executive secretary of the board within 220 days after the date of the event or act of
duty causing such disability and an application for such benefit, in such form and manner
as the board shall prescribe, is filed by the correctional employee or the correctional em-
ployee's authorized representative in the office of the executive secretary of the board within
two years of the date of disability:

(a) The correctional employee shall receive a retirement benefit equal to 50% of the
correctional employee's final average salary. Such benefit shall accrue from the day upon
which the correctional employee ceases to draw compensation.

(b) Each of the correctional employee's unmarried children under the age of 18 years
or each of the correctional employee's children under the age of 23 years who are full-time
students as provided in K.S.A. 74-49,117 and amendments thereto shall receive an annual
benefit equal to 10% of the correctional employee's final average salary. Such benefit shall
accrue from the day upon which the correctional employee ceases to draw compensation
and shall end on the first day of the month in which each such child or children attains the
age of 18 years, die or marry, whichever occurs earlier or in which each such child or children
attains the age of 23 years, if such child or children are full-time students as provided in
K.S.A. 74-49,117 and amendments thereto.

(c) In no case shall the total benefits payable under paragraphs (a) and (b) of this
subsection (2) be in excess of 75% of the correctional employee's final average salary.

(d) In the event a correctional employee who is retired under paragraph (a) of this
subsection (2), dies within two years after the date of such retirement, then benefits may
be payable under subsection (2) of K.S.A. 74-4916 and amendments thereto.

(e) In the event a correctional employee who is retired under paragraph (a) of this
subsection (2), dies more than two years after the date of such retirement, and the proximate
cause of such death is the service-connected cause from which the disability resulted, then
benefits may be payable under subsection (2) of K.S.A. 74-4916 and amendments thereto.

(f) In the event a correctional employee who is retired under subsection (2) dies after
the date of retirement and no benefits are payable under paragraphs (d) and (e) the following
benefits shall be payable:

(i) To the correctional employee's spouse, if lawfully wedded to the correctional employee
at the time of the correctional employee's death, a lump-sum benefit equal to 50% of the
correctional employee's final average salary at the time of the correctional employee's re-
tirement.

(ii) To the correctional employee's spouse, if lawfully wedded to the correctional em-
ployee at the time of the correctional employee's death, an annual benefit equal to 50% of
the correctional employee's retirement benefit payable in monthly installments, to accrue
from the first day of the month following the correctional employee's date of death and
ending on the first day of the month in which the spouse dies. If there is no surviving spouse,
or if after the death of the spouse there remain one or more children under the age of 18
years or one or more children under the age of 23 years who is a full-time student as provided
in K.S.A. 74-49,117, and amendments thereto, the annual spouse's benefit shall be payable
in equal shares to such children and each child's share shall end on the first day of the month
in which such child attains the age of 18 years or dies, whichever occurs earlier or in which
such child attains the age of 23 years, if such child is a full-time student as provided in
K.S.A. 74-49,117, and amendments thereto.

The provisions of this subsection shall apply in all cases of such correctional employees
who die after October 1, 1996.

(3) If any correctional employee who is an active contributing member prior to such
correctional employee's normal retirement becomes totally and permanently disabled for a
period of 180 days from causes not service-connected, and not as the result of a willfully
negligent or intentional act of the correctional employee, such correctional employee shall
be retired and the following benefit shall become payable and shall continue until the cor-
rectional employee's death or until the correctional employee recovers from such disability
whichever occurs first if a report of the disability in a form acceptable to the board is filed
in the office of the executive secretary of the board within 220 days after the date of the
commencement of such disability and if an application for such benefit in such form and
manner as the board shall prescribe is filed in the office of the executive secretary of the
board within two years of the date of disability:

A retirement benefit equal to 2% of the correctional employee's final average salary
multiplied by the number of years of credited service, except that such retirement benefit
shall be at least equal to 25% of the member's final average salary but not to exceed the
amount of the retirement benefit provided in paragraph (a) of subsection (2). Such benefit
shall not become payable until satisfactory evidence is presented to the board that the
correctional employee is and has been for a period of 180 days totally and permanently
disabled, but benefits shall accrue from the day upon which the correctional employee ceases
to draw compensation.

(4) Any correctional employee who is employed for compensation by an employer other
than the department of corrections and whose disability is incurred in the course of such
other employment shall not be eligible for any of the benefits provided in subsection (3).

(5) If a correctional employee becomes totally and permanently disabled and no benefits
are payable under subsections (2) or (3), the sum of the correctional employee's accumulated
contributions shall be paid to the correctional employee.

(6) Any correctional employee receiving benefits under this section shall submit to med-
ical examination, not oftener than annually, by one or more physicians or any other practi-
tioners of the healing arts holding a valid license issued by Kansas state board of healing
arts, as the board of trustees may direct. If upon such medical examination the examiners
report to the board that the retirant is physically able and capable of resuming employment
with the participating employer from whose employment the correctional employee retired,
the disability benefits shall terminate. A retirant who has been receiving benefits under the
provisions of this section and who returns to employment of a participating employer shall
immediately commence accruing service credit which shall be added to that which has been
accrued by virtue of previous service.

(7) Any retirant who has been receiving benefits under the provisions of this section for
a period of five years shall be deemed finally retired and shall not be subject to further
medical examinations, except that if the board of trustees shall have reasonable grounds to
question whether the retirant remains totally and permanently disabled, a further medical
examination or examinations may be required.

(8) Refusal or neglect to submit to examination as provided in subsection (6) shall be
sufficient cause for suspending or discontinuing benefit payments under this section and if
such refusal or neglect shall continue for a period of one year, the correctional employee's
rights in and to all benefits under the system may be revoked by the board.

(9) Any retirement benefits payable under the provisions of this section shall be in lieu
of all other benefits under the system.

(10) Each correctional employee shall report to such member's participating employer
any event or act of duty causing disability within 200 days after such event or act of duty.
The department of corrections shall file in the office of the executive secretary of the board,
in a form acceptable to the board, a report of the event or act of duty causing disability
within 220 days after the event or act of duty.

(11) Benefits payable under this section shall be reduced by the original amount of any
disability benefits received under the federal social security act or the workers compensation
act. For any correctional employee already retired on the effective date of this act, no
reduction of the original social security benefits shall be applicable to benefits paid prior to
the effective date of this act. In no case shall a correctional employee who is entitled to
receive benefits under this section receive less than $100 per month.

(12) The provisions of this section shall apply to disabilities occurring after June 30,
1982, and prior to July 1, 1995. At the direction of the board of trustees, the actuary shall
conduct an experience evaluation of benefits payable under this section and the board shall
provide copies of such study to the governor and members of the legislature.

(13) The provisions of K.S.A. 74-4927 and amendments thereto relating to insured dis-
ability benefits shall not be applicable to correctional employees subject to the provisions
of this section.

(14) In the event a correctional employee who is retired under subsection (3) dies after
the date of retirement and no benefits are payable under that subsection, the following
benefits shall be payable;

(i) To the correctional employee's spouse, if lawfully wedded to the correctional employee
at the time of the correctional employee's death, a lump-sum benefit equal to 50% of the
correctional employee's final average salary at the time of the correctional employee's re-
tirement.

(ii) To the correctional employee's spouse, if lawfully wedded to the correctional em-
ployee at the time of the correctional employee's death, an annual benefit equal to 50% of
the correctional employee's retirement benefit payable in monthly installments, to accrue
from the first day of the month following the correctional employee's date of death and
ending on the first day of the month in which the spouse dies. If there is no surviving spouse,
or if after the death of the spouse there remain one or more children under the age of 18
years or one or more children under the age of 23 years who is a full-time student as provided
in K.S.A. 74-49,117, and amendments thereto, the annual spouse's benefit shall be payable
in equal shares to such children and each child's share shall end on the first day of the month
in which such child attains the age of 18 years or dies, whichever occurs earlier or in which
such child attains the age of 23 years, if such child is a full-time student as provided in
K.S.A. 74-49,117, and amendments thereto.

The provisions of this subsection shall apply in all cases of such correctional employees
who die after October 1, 1996.

Sec. 19. K.S.A. 1997 Supp. 74-4917 is hereby amended to read as follows: 74-4917. (1)
Upon termination of employment with a participating employer, not followed by employ-
ment with such participating employer or another participating employer within 30 days of
such termination, the member shall be paid an amount equal to the member's accumulated
contributions then on deposit with the system after making application in such form as may
be prescribed by the board, except that the system shall have a reasonable time to process
the application for withdrawal. The participating employer shall, upon giving a terminated
employee a withdrawal application, certify to the system all member contributions which
have not been reported previously. In the case of a death of an active member, the partic-
ipating employer shall certify to the system all member contributions which have not been
reported previously and remit such contributions if the participating employer has not sub-
mitted a monthly remittance for the terminating quarter. The participating employer shall
be responsible to the system for any overpayment or underpayment of member contribu-
tions made by the system relating to a withdrawal of accumulated contributions or a death
of an active member which is due to an inaccurate certification of all member contributions
which have not been reported to the system as required by this section made by the partic-
ipating employer. A leave of absence, a period of total disability or military service shall not
be considered a termination of employment unless the member withdraws accumulated
contributions.

(2) Except as otherwise provided by this subsection, if such member has completed 10
years of credited service at date of termination, such member automatically shall be granted
a vested retirement benefit in the system, except that at any time prior to the commence-
ment of retirement benefit payments the member may withdraw accumulated contributions,
whereupon no other benefits shall be payable for such member's prior and participating
service credit. For purposes of this subsection, any employee of a local governmental unit
which has its own pension plan who becomes an employee of a participating employer as a
result of a merger or consolidation of services provided by local governmental units, which
occurred on January 1, 1994, may count service with such local governmental unit in de-
termining whether such employee has met the 10 years of credited service for vesting
requirement contained in this subsection. Eligibility of such member for retirement benefits
and procedures for making application for retirement benefits shall be in accordance with
K.S.A. 74-4914 and amendments thereto. Such member shall make application for retire-
ment in such form as may be prescribed by the board and retirement benefits shall accrue
from the first day of the month following receipt of such application. The amount of the
retirement benefit shall be determined as provided in K.S.A. 74-4915 and amendments
thereto.

(3) Termination of employment of a member, followed by employment with a partici-
pating employer within five years after such termination, does not constitute a break in
continuous employment if such member has not withdrawn accumulated contributions.
Such period while not employed shall not be credited.

(4) If, after the expiration of five years following the termination of employment, a
former member becomes an employee of such former member's former participating em-
ployer, or another participating employer, such former member shall be deemed to be a
new employee. If a member, who has a vested benefit again becomes an employee of a
participating employer, any credited service such member subsequently accrues shall be
added to that which had been vested by virtue of previous service. Eligibility of such member
for retirement benefits and procedures for making application for retirement benefits shall
be in accordance with K.S.A. 74-4914 and amendments thereto.

Sec. 20. K.S.A. 1997 Supp. 74-4919a, as amended by section 38 of 1997 Senate Bill
No. 382, is hereby amended to read as follows: 74-4919a. (1) An employee of a participating
employer who becomes a member as provided in K.S.A. 74-4911 and amendments thereto,
after completion of one year of continuous employment as therein provided may purchase
participating service credit for such year of employment by making application therefor.
Such application and payment may be made at any time after the employee becomes a
member and continues to be employed by a participating employer. Any member of the
system who has not retired may purchase, subject to the provisions of section 83 and amend-
ments thereto, such service credit by paying the then present value of the retirement benefits
based on such service by means of a single lump-sum payment in the amount determined
by the actuary using the member's attained age and the actuarial assumptions and tables
currently in use by this retirement system. If an employee was employed before the partic-
ipating employer's entry date and did not become a member until the first day of the month
or the first day of the first payroll period, whichever is applicable, coinciding with or follow-
ing the completion of one year continuous employment, the member may purchase, subject
to the provisions of section 83 and amendments thereto, participating service credit for the
period from the participating employer's entry date until such member became a member
by paying to the system the then present value of the retirement benefits based on such
service by means of a single lump-sum payment in the amount determined by the actuary
using the member's attained age and the actuarial assumptions and tables currently in use
by this retirement system.

Notwithstanding any other provision of this subsection, if an employee purchases such
participating service credit within 12 months of such employee's membership in the system,
such employee may purchase such participating service credit by making application there-
for and paying to the system a lump-sum amount equivalent to 4% of the compensation paid
to such member for personal services during such period. If an employee was employed for
a partial year after the participating employer's entry date and did not become a member
at that time, but became a member at a later date, the member may purchase, subject to
the provisions of section 83 and amendments thereto, participating service credit for such
partial year of employment by paying the then present value of the retirement benefits
based on such service by means of a single lump-sum payment in the amount determined
by the actuary using the member's attained age and the actuarial assumptions and tables
currently in use by this retirement system.

(2) Any employee of the state of Kansas who was receiving or was eligible for assistance
by the state board of regents in the purchase of a retirement annuity under K.S.A. 74-4925
and amendments thereto, and who became ineligible for such assistance prior to the effec-
tive date of this act because such employee's position was reclassified to a position in the
classified service under the Kansas civil service act, or who became ineligible for such
assistance because such person accepted and transferred to a position in the classified service
under the Kansas civil service act, and who becomes a member of the system on the first
day of the payroll period coinciding with or following the effective date of this act in ac-
cordance with subsection (5) of K.S.A. 74-4911 and amendments thereto, may purchase,
subject to the provisions of section 83 and amendments thereto, participating service credit
for the period of employment from the effective date of such reclassification or transfer to
the date of such employee's membership in the system. Such employee may purchase such
participating service credit by making application therefor and paying to the system a lump-
sum amount equivalent to 4% of the compensation paid to such member for personal
services during such period by the state of Kansas or as provided in subsection (3). Such
application and payment may be made at any time after the employee becomes a member
and continues to be employed by a participating employer.

(3) Except as otherwise provided in this subsection, any member of the retirement
system may purchase, subject to the provisions of section 83 and amendments thereto,
participating service credit for employment service as described in this section, if first com-
menced prior to January 1, 1996, by electing to effect such purchase by means of having
employee contributions as provided in K.S.A. 74-4919 and amendments thereto deducted
from such member's compensation at a percentage rate equal to two times or three times
the employee's rate of contribution as provided in K.S.A. 74-4919 and amendments thereto
for such periods of service, in lieu of a lump-sum amount as provided in this section. Such
deductions shall commence at the beginning of the quarter following such election and shall
remain in effect until all quarters of such service have been purchased. Subject to the
provisions of section 83 and amendments thereto, any person may make any such purchase
as described in this section, if first commenced in calendar year 1996 or thereafter, at an
additional rate of contribution, in addition to the employee's rate of contribution as provided
in K.S.A. 74-4919 and amendments thereto, based upon the member's attained age at the
time of purchase and using actuarial assumptions and tables in use by the retirement system
at such time of purchase, for such periods of service, in lieu of a lump-sum amount as
provided in this section. Such additional rate of contribution shall commence at the begin-
ning of the quarter following such election and shall remain in effect until all quarters of
such service have been purchased. Notwithstanding any other provision of this subsection,
any member of the retirement system, within 12 months of such member's membership date
in the system, may purchase participating service credit for employment service as described
in this section, by electing to effect such purchase by means of having employee contributions
as provided in K.S.A. 74-4919, and amendments thereto, deducted from such member's
compensation at a percentage rate equal to two times or three times the employee's rate of
contribution as provided in K.S.A. 74-4910, and amendments thereto, for such periods of
service, in lieu of a lump-sum amount as provided in this section. Such deductions shall
commence at the beginning of the quarter following such election and shall remain in effect
until all quarters of such service have been purchased. Such purchase must be completed
within 24 months of such membership date in the system.

Sec. 21. K.S.A. 1997 Supp. 74-4919h, as amended by section 44 of 1997 Senate Bill
No. 382, is hereby amended to read as follows: 74-4919h. (1) In addition to any military
service credited under the provisions of K.S.A. 74-4913 or 74-4936 and amendments thereto,
or in the event that an active contributing member does not qualify for credit for military
service as defined in subsection (22) of K.S.A. 74-4902 and amendments thereto, such
member may purchase, subject to the provisions of section 83 and amendments thereto,
participating credit for periods of active service in the armed forces of the United States or
in the commissioned corps of the United States public health service and for periods of
service required to fulfill the requirements of section 651 of title 10, United States code,
which are not otherwise creditable, which when added to any creditable military service do
not exceed six years. Except as provided in subsection (4)(a) for such purchase of partici-
pating credit for such periods of such military service which is the basis for military pension
rights, such member shall be entitled to purchase one quarter of participating service credit
for each year of service required to fulfill the requirements of section 651 of title 10, United
States code. Except as otherwise provided in this section, such purchase shall be effected
by the member submitting proof of such service acceptable to the board and, if first com-
menced prior to January 1, 1996, electing in writing to have employee contributions as
provided in K.S.A. 74-4919 and amendments thereto deducted from such member's com-
pensation at a percentage rate equal to two times or three times the employee's rate of
contribution as provided in K.S.A. 74-4919 and amendments thereto for such periods of
service. Such deductions shall commence at the beginning of the quarter following such
election and shall remain in effect until all of the full quarters of such service have been
purchased. Any person may make any such purchase as described in this section, subject to
the provisions of section 83 and amendments thereto, if first commenced in calendar year
1996 or thereafter, at an additional rate of contribution, in addition to the employee's rate
of contribution as provided in K.S.A. 74-4919 and amendments thereto, based upon the
member's attained age at the time of purchase and using actuarial assumptions and tables
in use by the retirement system at such time of purchase, for such periods of service, in
lieu of a lump-sum amount as provided in this section. Such additional rate of contribution
shall commence at the beginning of the quarter following such election and shall remain in
effect until all quarters of such service have been purchased.

(2) (a) Such purchase of participating service credit must be completed prior to such
member's retirement.

(b) For members purchasing such participating service credit on or after July 1, 1993,
whose purchase is completed within five years before such member's retirement, subject to
the provisions of section 83 and amendments thereto, such member shall pay the actuarially
determined amount by means of a single lump-sum payment or equal annual payments
which shall be completed prior to retirement. The lump-sum payment or annual payments
shall be determined by the system's actuary by using the member's current annual salary at
the time, actuarial assumptions and tables currently in use by the system and the member's
attained age. Any member who purchases such participating service credit and who does
not make the lump-sum payment or annual payments as required by this subsection shall
have any previously credited service under this section voided and such member shall be
refunded such member's payments previously made for such purchase plus interest. The
provisions of this subsection shall not apply to any member who is employed by an institution
that is closed or abolished or otherwise ceases operations or that is scheduled for such
closure, abolition or cessation of operations and has a budget reduction imposed that is
associated with such closure, abolition or cessation of operations, and who is laid off from
employment with such institution for the reason of such closure, abolition or cessation. As
used in this subsection, ``institution'' means Topeka state hospital or Winfield state hospital
and training center; and ``laid off'' means, in the case of a state officer or employee in the
classified service under the Kansas civil service act, being laid off under K.S.A. 75-2948 and
amendments thereto and in the case of a state officer or employee in the unclassified service
under the Kansas civil service act, being terminated from employment with the state agency
by the appointing authority, except that ``laid off'' shall not include any separation from
employment pursuant to budget reduction or expenditure authority reduction and reduction
of F.T.E. positions under K.S.A. 75-6801 and amendments thereto.

(3) In the event such member has elected to purchase participating service credit as
provided in K.S.A. 74-4919a to 74-4919e, inclusive, and any amendments thereto, the in-
creased employee contributions and purchase of participating service credit provided herein
shall not commence until after the purchase of participating service credit under K.S.A. 74-
4919a to 74-4919e, inclusive, and any amendments thereto, has been completed. If a mem-
ber terminates employment before completing the purchase of all participating service credit
as such member may be entitled to, such member shall only receive such credit for those
full quarters as the percentage rate equal to two times or three times the employee's rate
of contribution as provided in K.S.A. 74-4919 and amendments thereto or those full quarters
as the additional rate of contribution, in addition to the employee's rate of contribution as
provided in K.S.A. 74-4919 and amendments thereto has been deducted from such mem-
ber's compensation.

(4) (a) Any member of the system who has not yet retired may purchase participating
service credit for military service as described in this section which is the basis for military
pension rights at an additional rate of contribution in addition to the employee's rate of
contribution as provided in K.S.A. 74-4919 and amendments thereto, based upon the mem-
ber's attained age at the time of purchase and using actuarial assumptions and tables in use
by the retirement system at the time of such purchase. Such additional rate of contribution
shall commence at the beginning of the quarter following such election and shall remain in
effect until all quarters of such service have been purchased. Any such member may pur-
chase, subject to the provisions of section 83 and amendments thereto, participating service
credit for military service as described in this section by electing to effect such purchase by
means of a single lump-sum payment in lieu of employee contributions as provided in this
section. The lump-sum payment shall be an amount determined by the actuary using the
member's then current annual rate of compensation, or if not actively employed, the mem-
ber's annual rate of compensation when last participating, the actuarial assumptions and
tables currently in use by the retirement system and the member's attained age.

(b) Any member of the retirement system who has not retired may purchase, subject
to the provisions of section 83 and amendments thereto, participating service credit for
military service as described in this section which is not the basis for military pension rights
by electing to effect such purchase by means of a single lump-sum payment in lieu of
employee contributions as provided in this section. The lump-sum payment shall be an
amount determined by the actuary using the member's then current annual rate of com-
pensation, or if not actively employed, the member's annual rate of compensation when last
participating, the actuarial assumptions and tables currently in use by the retirement system
and the member's attained age.

Sec. 22. K.S.A. 74-4919i, as amended by section 45 of 1997 Senate Bill No. 382, is
hereby amended to read as follows: 74-4919i. Any person who becomes a member of the
Kansas public employees retirement system pursuant to subsection (14) of K.S.A. 74-4902,
subsection (4) of K.S.A. 74-4932, K.S.A. 74-4911c, K.S.A. 74-4911d or K.S.A. 74-4919k and
amendments thereto, may elect to purchase additional benefits for any service performed
during the period that such person was barred from membership in the Kansas public
employees retirement system, except that no person shall purchase additional benefits for
any service which is the basis or will become the basis for retirement credit or benefits
under a retirement annuity under the provisions of K.S.A. 74-4925 and amendments thereto.
~~As used in this section, ``annual compensation'' means the rate of annual compensation being~~
~~paid to such member by the participating employer on the date of application to purchase~~
~~additional benefits.~~ At the election of the member the benefit for each year of service shall
be equal to either 1% or 1.75% of the final average salary of any such member. For any
member who elected to purchase service credit as provided in this section prior to the
effective date of this act at the 1% rate, such member may elect to purchase such service
credit at an additional amount of .75% of final average salary of such member in a lump-
sum amount as otherwise provided in this subsection. Such member may purchase additional
benefits by making application therefor ~~at least three years~~ prior to date of retirement and,
subject to the provisions of section 83 and amendments thereto, ~~by making~~ at an additional
rate of contribution in addition to the employee's rate of contribution as provided in K.S.A.
74-4919 and amendments thereto, based upon the member's attained age at the time of
purchase and using actuarial assumptions and tables in use by the retirement system at the
time of such purchase. Such additional rate of contribution shall commence at the beginning
of the quarter following such election and shall remain in effect until all quarters of such
service have been purchased. Any such member may purchase service as described in this
section by electing to effect such purchase by means of a single lump-sum payment in lieu
of employee contributions as provided in this section in an amount equal to the then present
value of the benefits being purchased as determined by the actuary using the member's
attained age, annual compensation at the time of purchase and the actuarial assumptions
and tables then in use by the system. The lump-sum payment shall be made immediately
upon being notified of the amount due. ~~The benefit for each such year of service shall be~~
~~equal to 1% of the annual compensation at the time the member purchases such additional~~
~~benefits.~~

Sec. 23. K.S.A. 1997 Supp. 74-4919n, as amended by section 49 of 1997 Senate Bill
No. 382, is hereby amended to read as follows: 74-4919n. Any employee of a participating
employer who is a member of the Kansas public employees retirement system, who was
previously employed in another state in nonfederal governmental employment and which
service otherwise meets the requirements of an employee as prescribed in subsection (14)
of K.S.A. 74-4902 or subsection (4) of K.S.A. 74-4932 and amendments thereto, may elect
to purchase, subject to the provisions of section 83 and amendments thereto, ~~prior~~ service
for such out-of-state nonfederal governmental employment. At the election of the member,
the benefit for each such year of employment shall be equal to either 1% or 1.75% of the
final average salary of any such member. For any member who elected to purchase service
credit as provided in this section prior to the effective date of this act at the 1% rate, such
member may elect to purchase such service credit at an additional amount of .75% of final
average salary of such member in a lump-sum amount as otherwise provided in this sub-
section. Such member may purchase such ~~prior~~ service by making application therefor prior
to date of retirement at an additional rate of contribution in addition to the employee's rate
of contribution as provided in K.S.A. 74-4919 and amendments thereto, based upon the
member's attained age at the time of purchase and using actuarial assumptions and tables
in use by the retirement system at the time of such purchase. Such additional rate of con-
tribution shall commence at the beginning of the quarter following such election and shall
remain in effect until all quarters of such service have been purchased. Subject to the
provisions of section 83 and amendments thereto, any such member may purchase such
~~prior~~ service as described in this section by electing to effect such purchase by means of a
single lump-sum payment in lieu of employee contributions as provided in this section in
an amount equal to the then present value of the benefits being purchased as determined
by the actuary using the member's attained age, annual compensation at the time of purchase
and the actuarial assumptions and tables then in use by this system. The lump-sum payment
shall be made immediately upon being notified of the amount due.

Sec. 24. K.S.A. 1997 Supp. 74-4919p is hereby amended to read as follows: 74-4919p.
Any member may purchase ~~prior~~ service for periods of service in the United States peace
corps which commenced on or after January 1, 1962. At the election of the member, the
benefit for each such period of service shall be equal to either 1% or 1.75% of the final
average salary of any such member. For any member who elected to purchase service credit
as provided in this section prior to the effective date of this act at the 1% rate, such member
may elect to purchase such service credit at an additional amount of .75% of final average
salary of such member in a lump-sum amount as otherwise provided in this subsection. Such
member may purchase such ~~prior~~ service by making application therefor prior to date of
retirement at an additional rate of contribution in addition to the employee's rate of con-
tribution as provided in K.S.A. 74-4919 and amendments thereto, based upon the member's
attained age at the time of purchase and using actuarial assumptions and tables in use by
the retirement system at the time of such purchase. Such additional rate of contribution
shall commence at the beginning of the quarter following such election and shall remain in
effect until all quarters of such service have been purchased. Any such member may pur-
chase ~~prior~~ service as described in this section by electing to effect such purchase by means
of a single lump-sum payment in lieu of employee contributions as provided in this section
in an amount equal to the then present value of the benefits being purchased as determined
by the actuary using the member's attained age, annual compensation at the time of purchase
and the actuarial assumptions and tables then in use by this system. The lump-sum payment
shall be made immediately upon being notified of the amount due. No participating em-
ployer shall pay the cost, or any part thereof, of any ~~prior~~ service authorized to be purchased
by a member under this section. The provisions of this section shall be effective on and
after July 1, 1996.

Sec. 25. K.S.A. 1997 Supp. 74-4919q is hereby amended to read as follows: 74-4919q.
Any employee of a participating employer who is a member of the Kansas public employees
retirement system, who was previously employed as an employee of the memorial union
corporation which is affiliated with Emporia state university, may elect to purchase ~~prior~~
service for such employment. At the election of the member, the benefit for each such year
of employment shall be equal to either 1% or 1.75% of the final average salary of any such
member. For any member who elected to purchase service credit as provided in this section
prior to the effective date of this act at the 1% rate, such member may elect to purchase
such service credit at an additional amount of .75% of final average salary of such member
in a lump-sum amount as otherwise provided in this subsection. Such member may purchase
such ~~prior~~ service by making application therefor prior to date of retirement at an additional
rate of contribution in addition to the employee's rate of contribution as provided in K.S.A.
74-4919 and amendments thereto, based upon the member's attained age at the time of
purchase and using actuarial assumptions and tables in use by the retirement system at the
time of such purchase. Such additional rate of contribution shall commence at the beginning
of the quarter following such election and shall remain in effect until all quarters of such
service have been purchased. Any such member may purchase ~~prior~~ service as described in
this section by electing to effect such purchase by means of a single lump-sum payment in
lieu of employee contributions as provided in this section in an amount equal to the then
present value of the benefits being purchased as determined by the actuary using the mem-
ber's attained age, annual compensation at the time of purchase and the actuarial assump-
tions and tables then in use by this system. The lump-sum payment shall be made imme-
diately upon being notified of the amount due. No participating employer shall pay the cost,
or any part thereof, of any ~~prior~~ service authorized to be purchased by a member under
this section. The provisions of this section shall be effective on and after July 1, 1996.

Sec. 26. K.S.A. 1997 Supp. 74-4920 is hereby amended to read as follows: 74-4920. (1)
(a) Upon the basis of each annual actuarial valuation and appraisal as provided for in sub-
section (3)(a) of K.S.A. 74-4908 and amendments thereto, the board shall certify, on or
before July 15 of each year, to the division of the budget in the case of the state and to the
agent for each other participating employer an actuarially determined estimate of the rate
of contribution which will be required, together with all accumulated contributions and
other assets of the system, to be paid by each such participating employer to pay all liabilities
which shall exist or accrue under the system, including amortization of the actuarial accrued
liability over a period of 40 years commencing on July 1, 1993, and the actuarial accrued
liability for members of the faculty and other persons who are employed by the state board
of regents or by educational institutions under its management assisted by the state board
of regents in the purchase of retirement annuities as provided in K.S.A. 74-4925 and amend-
ments thereto, as provided in this section. The actuarial accrued liability for all participating
employers other than the state board of regents relating to members of the faculty and other
persons described in this section, shall be amortized by annual payments that increase 4%
for each year remaining in the amortization period. For all participating employers other
than the state board of regents relating to members of the faculty and other persons de-
scribed in this section, the projected unit credit actuarial cost method shall be used in annual
actuarial valuations, commencing with the 1993 valuation, to determine the employer con-
tribution rates that shall be certified by the board. The actuarial accrued liability for mem-
bers of the faculty and other persons described in this subsection assisted by the state board
of regents in the purchase of retirement annuities as provided in K.S.A. 74-4925 and amend-
ments thereto shall be amortized by annual level payments over a period of 10 11 years
commencing July 1, 1993. Such certified rate of contribution shall be based on the standards
set forth in subsection (3)(a) of K.S.A. 74-4908 and amendments thereto and shall not be
based on any other purpose outside of the needs of the system.

(b) (i) For employers affiliating on and after January 1, 1999, upon the basis of an
annual actuarial valuation and appraisal of the system conducted in the manner provided
for in K.S.A. 74-4908 and amendments thereto, the board shall certify, on or before July 15
of each year to each such employer an actuarially determined estimate of the rate of con-
tribution which shall be required to be paid by each such employer to pay all of the liabilities
which shall accrue under the system from and after the entry date as determined by the
board, upon recommendation of the actuary. Such rate shall be termed the employer's par-
ticipating service contribution and shall be uniform for all participating employers. Such
additional liability shall be amortized over a period of 34 years commencing on July 1, 1999,
by annual payments that increase 4% for each year remaining in the amortization period.
For all participating employers described in this section, the projected unit credit actuarial
cost method shall be used in annual actuarial valuations to determine the employer contri-
bution rates that shall be certified by the board.

(ii) The board shall determine for each such employer separately an amount sufficient
to amortize over a period of not to exceed 34 years commencing July 1, l999, all liabilities
for prior service costs which shall have accrued at the time of entry into the system. On the
basis of such determination the board shall annually certify to each such employer separately
an actuarially determined estimate of the rate of contribution which shall be required to be
paid by that employer to pay all of the liabilities for such prior service costs. Such rate shall
be termed the employer's prior service contribution.

(2) The division of the budget and the governor shall include in the budget and in the
budget request for appropriations for personal services the sum required to satisfy the state's
obligation under this act as certified by the board and shall present the same to the legislature
for allowance and appropriation.

(3) Each other participating employer shall appropriate and pay to the system a sum
sufficient to satisfy the obligation under this act as certified by the board.

(4) Each participating employer is hereby authorized to pay the employer's contribution
from the same fund that the compensation for which such contribution is made is paid from
or from any other funds available to it for such purpose. Each political subdivision, other
than an instrumentality of the state, which is by law authorized to levy taxes for other
purposes, may levy annually at the time of its levy of taxes, a tax which may be in addition
to all other taxes authorized by law for the purpose of making its contributions under this
act and, in the case of cities and counties, to pay a portion of the principal and interest on
bonds issued under the authority of K.S.A. 12-1774 and amendments thereto by cities lo-
cated in the county, which tax, together with any other fund available, shall be sufficient to
enable it to make such contribution. In lieu of levying the tax authorized in this subsection,
any taxing subdivision may pay such costs from any employee benefits contribution fund
established pursuant to K.S.A. 12-16,102 and amendments thereto. Each participating em-
ployer which is not by law authorized to levy taxes as described above, but which prepares
a budget for its expenses for the ensuing year and presents the same to a governing body
which is authorized by law to levy taxes as described above, may include in its budget an
amount sufficient to make its contributions under this act which may be in addition to all
other taxes authorized by law. Such governing body to which the budget is submitted for
approval, may levy a tax sufficient to allow the participating employer to make its contri-
butions under this act, which tax, together with any other fund available, shall be sufficient
to enable the participating employer to make the contributions required by this act.

(5) The rate of contribution certified to a participating employer as provided in this
section shall apply during the fiscal year of the participating employer which begins in the
second calendar year following the year of the actuarial valuation. For the fiscal year com-
mencing in calendar year 1993, the employer rate of contribution for the state of Kansas
and for participating employers under K.S.A. 74-4931 and amendments thereto shall be
3.1% of the amount of compensation upon which members contribute during the period.
For the fiscal year commencing in calendar year 1994, the employer rate of contribution
for the state of Kansas and for participating employers under K.S.A. 74-4931 and amend-
ments thereto shall be 3.2% of the amount of compensation upon which members contribute
during the period. For the fiscal year commencing in calendar year 1994, the employer rate
of contribution for participating employers other than the state of Kansas shall be 2.2% of
the amount of compensation upon which members contribute during the period. Except as
specifically provided in this section, for the fiscal year commencing in calendar year 1995,
the rate of contribution certified to a participating employer shall in no event exceed such
participating employer's contribution rate for the immediately preceding fiscal year by more
than 0.1% of the amount of compensation upon which members contribute during the
period. Except as specifically provided in this section, for fiscal years commencing in cal-
endar year 1996 and in each subsequent calendar year, the rate of contribution certified to
the state of Kansas shall in no event exceed the state's contribution rate for the immediately
preceding fiscal year by more than 0.2% of the amount of compensation upon which mem-
bers contribute during the period. Except as specifically provided in this section, for fiscal
years commencing in calendar year 1997 and in each subsequent calendar year, the rate of
contribution certified to participating employers other than the state of Kansas shall in no
event exceed such participating employer's contribution rate for the immediately preceding
fiscal year by more than 0.15% of the amount of compensation upon which members con-
tribute during the period. There shall be an employer rate of contribution certified to the
state of Kansas and participating employers under K.S.A. 74-4931 and amendments thereto.
There shall be a separate employer rate of contribution certified to all other participating
employers other than the state of Kansas.

(6) The actuarial cost of any legislation enacted in the 1994 session of the Kansas leg-
islature will be included in the June 30, 1994, actuarial valuation in determining contribution
rates for participating employers.

(7) The actuarial cost of the provisions of section 50 will be included in the June 30,
1998, actuarial valuation in determining contribution rates for participating employers. The
actuarial accrued liability incurred for the provisions of section 50 for members who retired
prior to July 1, 1993, shall be amortized over 15 years.

(8) The board with the advice of the actuary may fix the contribution rates for partici-
pating employers joining the system after one year from the first entry date or for employers
who exercise the option contained in K.S.A. 74-4912 and amendments thereto at rates
different from the rate fixed for employers joining within one year of the first entry date.

(9) For employers affiliating on and after January 1, 1999, the rates of contribution
certified to the participating employer as provided in this section shall apply during the
fiscal year immediately following such certification, but the rate of contribution during the
first year following the employer's entry date shall be equal to 7% of the amount of com-
pensation on which members contribute during the year. Any amount of such first year's
contribution which may be in excess of the necessary current service contribution shall be
credited by the board to the respective employer's prior service liability.

~~(8)~~ (10) Employer contributions shall in no way be limited by any other act which now
or in the future establishes or limits the compensation of any member.

~~(9)~~ (11) Notwithstanding any provision of law to the contrary, each participating em-
ployer shall remit quarterly, or as the board may otherwise provide, all employee deductions
and required employer contributions to the executive secretary for credit to the Kansas
public employees retirement fund within 20 three days after the end of the period covered
by the remittance ~~or within 25 days after forms or written instructions from the system were~~
~~mailed by the system to such employer, whichever is later~~ by electronic funds transfer.
Remittances of such deductions and contributions received after such date are delinquent.
Delinquent payments due under this subsection shall be subject to interest at the rate
established for interest on judgments under subsection (a) of K.S.A. 16-204 and amendments
thereto. At the request of the board, delinquent payments which are due or interest owed
on such payments, or both, may be deducted from any other moneys payable to such em-
ployer by any department or agency of the state.

Sec. 27. K.S.A. 1997 Supp. 74-4921 is hereby amended to read as follows: 74-4921. (1)
There is hereby created in the state treasury the Kansas public employees retirement fund.
All employee and employer contributions shall be deposited in the state treasury to be
credited to the Kansas public employees retirement fund. The fund is a trust fund and shall
be used solely for the exclusive purpose of providing benefits to members and member
beneficiaries and defraying reasonable expenses of administering the fund. Investment in-
come of the fund shall be added or credited to the fund as provided by law. All benefits
payable under the system, refund of contributions and overpayments, purchases or invest-
ments under the law and expenses in connection with the system unless otherwise provided
by law shall be paid from the fund. The director of accounts and reports is authorized to
draw warrants on the state treasurer and against such fund upon the filing in the director's
office of proper vouchers executed by the chairperson or the executive secretary of the
board. As an alternative, payments from the fund may be made by credits to the accounts
of recipients of payments in banks, savings and loan associations and credit unions. A pay-
ment shall be so made only upon the written authorization and direction of the recipient of
payment and upon receipt of such authorization such payments shall be made in accordance
therewith. Orders for payment of such claims may be contained on (a) a letter, memoran-
dum, telegram, computer printout or similar writing, or (b) any form of communication,
other than voice, which is registered upon magnetic tape, disc or any other medium designed
to capture and contain in durable form conventional signals used for the electronic com-
munication of messages.

(2) The board shall have the responsibility for the management of the fund and shall
discharge the board's duties with respect to the fund solely in the interests of the members
and beneficiaries of the system for the exclusive purpose of providing benefits to members
and such member's beneficiaries and defraying reasonable expenses of administering the
fund and shall invest and reinvest moneys in the fund and acquire, retain, manage, including
the exercise of any voting rights and disposal of investments of the fund within the limitations
and according to the powers, duties and purposes as prescribed by this section.

(3) Moneys in the fund shall be invested and reinvested to achieve the investment
objective which is preservation of the fund to provide benefits to members and member
beneficiaries, as provided by law and accordingly providing that the moneys are as productive
as possible, subject to the standards set forth in this act. No moneys in the fund shall be
invested or reinvested if the sole or primary investment objective is for economic devel-
opment or social purposes or objectives.

(4) In investing and reinvesting moneys in the fund and in acquiring, retaining, man-
aging and disposing of investments of the fund, the board shall exercise the judgment, care,
skill, prudence and diligence under the circumstances then prevailing, which persons of
prudence, discretion and intelligence acting in a like capacity and familiar with such matters
would use in the conduct of an enterprise of like character and with like aims by diversifying
the investments of the fund so as to minimize the risk of large losses, unless under the
circumstances it is clearly prudent not to do so, and not in regard to speculation but in
regard to the permanent disposition of similar funds, considering the probable income as
well as the probable safety of their capital.

(5) Notwithstanding subsection (4): (a) Total investments in common stock may be made
in the amount of up to 60% of the total book value of the fund;

(b) the board may invest or reinvest moneys of the fund in alternative investments if
the following conditions are satisfied:

(i) The total of such alternative investments does not exceed more than 5% of the total
investment assets of the fund. If the total of such alternative investments exceeds more than
5% of the total investment assets of the fund on the effective date of this act, the board
shall not invest or reinvest any moneys of the fund in alternative investments until the total
of such alternative investments is less the 5% of the total investment assets of the fund
subject to the 5% limitation contained in this subsection. Nothing in this subsection requires
the board to liquidate or sell the system's holdings in any alternative investment held by the
system on the effective date of this act, unless such liquidation or sale would be in the best
interest of the members and beneficiaries of the system and be prudent under the standards
contained in this section. The 5% limitation contained in this section shall not have been
violated if the total of such alternative investments exceeds 5% of the total investment assets
of the fund as a result of market forces acting to increase the value of such alternative
investments relative to the rest of the system's investments; however, the board shall not
invest or reinvest any moneys of the fund in alternative investments until the total of such
alternative investments is less than 5% of the total investment assets of the fund subject to
the 5% limitation contained in this subsection;

(ii) if in addition to the system, there are at least two other sophisticated investors, as
defined by section 301 of the securities and exchange act of 1933;

(iii) the system's share in any individual alternative investment is limited to an invest-
ment representing not more than 20% of any such individual alternative investment;

(iv) the system has received a favorable and appropriate recommendation from a qual-
ified, independent expert in investment management or analysis in that particular type of
alternative investment;

(v) the alternative investment is consistent with the system's investment policies and
objectives as provided in subsection (6);

(vi) the individual alternative investment does not exceed more than 2.5% of the total
alternative investments made under this subsection. If the alternative investment is made
pursuant to participation by the system in a multi-investor pool, the 2.5% limitation con-
tained in this subsection is applied to the underlying individual assets of such pool and not
to investment in the pool itself. The total of such alternative investments made pursuant to
participation by the system in any one individual multi-investor pool shall not exceed more
than 20% of the total of alternative investments made by the system pursuant to this sub-
section. Nothing in this subsection requires the board to liquidate or sell the system's hold-
ings in any alternative investments made pursuant to participation by the system in any one
individual multi-investor pool held by the system on the effective date of this act, unless
such liquidation or sale would be in the best interest of the members and beneficiaries of
the system and be prudent under the standards contained in this section. The 20% limitation
contained in this subsection shall not have been violated if the total of such investment in
any one individual multi-investor pool exceeds 20% of the total alternative investments of
the fund as a result of market forces acting to increase the value of such a multi-investor
pool relative to the rest of the system's alternative investments; however, the board shall
not invest or reinvest any moneys of the fund in any such individual multi-investor pool until
the value of such individual multi-investor pool is less than 20% of the total alternative
investments of the fund;

(vii) the board has received and considered the investment manager's due diligence
findings submitted to the board as required by subsection (6)(c); and

(viii) prior to the time the alternative investment is made, the system has in place pro-
cedures and systems to ensure that the investment is properly monitored and investment
performance is accurately measured.

For purposes of this act, ``alternative investment'' means nontraditional investments out-
side the established nationally recognized public stock exchanges and government securities
market. Alternative investments shall include, but not be limited to, private placements,
venture capital, partnerships, limited partnerships and leveraged buyout partnerships;

(c) except as otherwise provided, the board may invest or reinvest moneys of the fund
in real estate investments if the following conditions are satisfied:

(i) ~~If, in addition to the system, there are at least two other sophisticated investors, as~~
~~defined by section 301 of the securities and exchange act of 1933;~~

~~(ii) the system's share in any individual real estate investment is limited to an investment~~
~~representing not more than 20% of any such individual real estate investment;~~

~~(iii)~~ The system has received a favorable and appropriate recommendation from a qual-
ified, independent expert in investment management or analysis in that particular type of
real estate investment;

~~(iv)~~ (ii) the real estate investment is consistent with the system's investment policies and
objectives as provided in subsection (6); and

~~(v) the total of such real estate investments made pursuant to participation by the system~~
~~in any one individual multi-investor pool shall not exceed more than 20% of the total of real~~
~~estate investments made by the system pursuant to this subsection. Nothing in this subsec-~~
~~tion requires the board to liquidate or sell the system's holdings in any real estate investments~~
~~made pursuant to participation by the system in any one individual multi-investor pool held~~
~~by the system on the effective date of this act, unless such liquidation or sale would be in~~
~~the best interest of the members and beneficiaries of the system and be prudent under the~~
~~standards contained in this section. The 20% limitation contained in this subsection shall~~
~~not have been violated if the total of such investment in any one individual multi-investor~~
~~pool exceeds 20% of the total real estate investments of the fund as a result of market forces~~
~~acting to increase the value of such a multi-investor pool relative to the rest of the system's~~
~~real estate investments; however, the board shall not invest or reinvest any moneys of the~~
~~fund in any such individual multi-investor pool until the value of such individual multi-~~
~~investor pool is less than 20% of the total real estate investments of the fund;~~

~~(vi)~~ (iii) the board has received and considered the investment manager's due diligence
findings submitted to the board as required by subsection (6)(c);

~~(vii) prior to the time the real estate investment is made, the system has in place pro-~~
~~cedures and systems to ensure that the investment is properly monitored and investment~~
~~performance is accurately measured; and~~

~~(viii) the provisions of this subsection shall not apply to any real estate investment held~~
~~by the system on July 1, 1992;~~ and

(d) the board shall not invest or reinvest moneys of the fund in any banking institution,
savings and loan association or credit union which positions the system as a shareholder or
owner of such banking institution, savings and loan association or credit union.

(6) Subject to the objective set forth in subsection (3) and the standards set forth in
subsections (4) and (5) the board shall formulate policies and objectives for the investment
and reinvestment of moneys in the fund and the acquisition, retention, management and
disposition of investments of the fund. Such policies and objectives shall include:

(a) Specific asset allocation standards and objectives;

(b) establishment of criteria for evaluating the risk versus the potential return on a
particular investment;

(c) a requirement that all investment managers submit such manager's due diligence
findings on each investment to the board or investment advisory committee for approval or
rejection prior to making any alternative investment;

(d) a requirement that all investment managers shall immediately report all instances
of default on investments to the board and provide the board with recommendations and
options, including, but not limited to, curing the default or withdrawal from the investment;
and

(e) establishment of criteria that would be used as a guideline for determining when no
additional add-on investments or reinvestments would be made and when the investment
would be liquidated.

The board shall review such policies and objectives, make changes considered necessary
or desirable and readopt such policies and objectives on an annual basis.

(7) The board may enter into contracts with one or more persons whom the board
determines to be qualified, whereby the persons undertake to perform the functions spec-
ified in subsection (2) to the extent provided in the contract. Performance of functions under
contract so entered into shall be paid pursuant to rates fixed by the board subject to pro-
visions of appropriation acts and shall be based on specific contractual fee arrangements.
The system shall not pay or reimburse any expenses of persons contracted with pursuant to
this subsection, except that after approval of the board, the system may pay approved in-
vestment related expenses subject to provisions of appropriation acts. The board shall re-
quire that a person contracted with to obtain commercial insurance which provides for errors
and omissions coverage for such person in an amount to be specified by the board, provided
that such coverage shall be at least the greater of $500,000 or 1% of the funds entrusted to
such person up to a maximum of $10,000,000. The board shall require a person contracted
with to give a fidelity bond in a penal sum as may be fixed by law or, if not so fixed, as may
be fixed by the board, with corporate surety authorized to do business in this state. Such
persons contracted with the board pursuant to this subsection and any persons contracted
with such persons to perform the functions specified in subsection (2) shall be deemed to
be agents of the board and the system in the performance of contractual obligations.

(8) (a) In the acquisition or disposition of securities, the board may rely on the written
legal opinion of a reputable bond attorney or attorneys, the written opinion of the attorney
of the investment counselor or managers, or the written opinion of the attorney general
certifying the legality of the securities.

(b) The board shall employ or retain qualified investment counsel or counselors or may
negotiate with a trust company to assist and advise in the judicious investment of funds as
herein provided.

(9) (a) Except as provided in subsection (7) and this subsection, the custody of money
and securities of the fund shall remain in the custody of the state treasurer, except that the
board may arrange for the custody of such money and securities as it considers advisable
with one or more member banks or trust companies of the federal reserve system or with
one or more banks in the state of Kansas, or both, to be held in safekeeping by the banks
or trust companies for the collection of the principal and interest or other income or of the
proceeds of sale. The services provided by the banks or trust companies shall be paid pur-
suant to rates fixed by the board subject to provisions of appropriation acts.

(b) The state treasurer and the board shall collect the principal and interest or other
income of investments or the proceeds of sale of securities in the custody of the state
treasurer and pay same when so collected into the fund.

(c) The principal and interest or other income or the proceeds of sale of securities as
provided in clause (a) of this subsection (9) shall be reported to the state treasurer and the
board and credited to the fund.

(10) The board shall with the advice of the director of accounts and reports establish
the requirements and procedure for reporting any and all activity relating to investment
functions provided for in this act in order to prepare a record monthly of the investment
income and changes made during the preceding month. The record will reflect a detailed
summary of investment, reinvestment, purchase, sale and exchange transactions and such
other information as the board may consider advisable to reflect a true accounting of the
investment activity of the fund.

(11) The board shall provide for an examination of the investment program annually.
The examination shall include an evaluation of current investment policies and practices
and of specific investments of the fund in relation to the objective set forth in subsection
(3), the standard set forth in subsection (4) and other criteria as may be appropriate, and
recommendations relating to the fund investment policies and practices and to specific
investments of the fund as are considered necessary or desirable. The board shall include
in its annual report to the governor as provided in K.S.A. 74-4907, and amendments thereto,
a report or a summary thereof covering the investments of the fund.

(12) (a) ~~The legislative post auditor shall conduct~~ An annual financial-compliance audit
of the system, including any performance audit subjects which are directed to be included
in such annual audit by the legislative post audit committee, performance audits of the
system as prescribed ~~by this section and~~ under the Kansas governmental operations law,
and such other audits as are directed by the legislative post audit committee under the
Kansas legislative post audit act shall be conducted. The annual financial-compliance audit
shall include, but not be limited to, a review of alternative investments of the system with
any estimates of permanent impairments to the value of such alternative investments re-
ported by the system pursuant to K.S.A. 74-4907, and amendments thereto.

(b) ~~Except as otherwise provided by~~ In accordance with this subsection (12), the ~~leg-~~
~~islative post auditor shall conduct~~ annual financial-compliance audit may include one or
more performance ~~audits,~~ audit subjects as directed by the legislative post audit committee,
~~which shall include, but not be limited to, one or more of the following subjects: An eval-~~
~~uation of the performance of investment managers, an evaluation of the rates of return of~~
~~investments reported by the system, an evaluation of the total compensation received for~~
~~the planned year by investment managers by individual investment classification, and a~~
~~comparison of the system's investment practices and performance with the investment prac-~~
~~tices and performance of other state pension programs by asset type, including all asset~~
~~types described as alternative investments in subsection (5)(b)~~. In considering performance
audit subjects to be included in any financial-compliance audit conducted pursuant to this
subsection (12), the legislative post audit committee shall consider recommendations and
requests for performance audits, relating to the system or the management thereof, by the
joint committee on pensions, investments and benefits or by any other committee or indi-
vidual member of the legislature. Commencing with the ~~performance~~ financial-compliance
audit for the fiscal year ending June 30, ~~1994~~ 1998, the legislative post audit committee
shall specify ~~which of the~~ if one or more performance audit subjects ~~listed in this subsection~~
shall be included in ~~each performance~~ the financial-compliance audit conducted pursuant
to this subsection (12), in addition to such other subjects as may be directed to be included
in the ~~performance~~ financial-compliance audit by the legislative post audit committee. Ex-
cept as otherwise determined by the legislative post audit committee pursuant to this sub-
section (12), commencing with the ~~performance~~ financial-compliance audit for the fiscal
year ending June 30, ~~1994, each of the~~ 1998, one or more performance audit subjects ~~listed~~
~~in this subsection~~ specified by the legislative post audit committee shall be included at least
once every two fiscal years in a ~~performance~~ financial-compliance audit conducted pursuant
to this subsection~~, excluding any fiscal year during which the system and the board are~~
~~subject to review and evaluation by the legislature under the Kansas governmental opera-~~
~~tions accountability law~~ (12). ~~Except as otherwise directed by the legislative post audit~~
~~committee, no performance audit shall be conducted pursuant to this subsection during any~~
~~fiscal year when the system and the board are subject to a performance audit and to review~~
~~and evaluation under the Kansas governmental operations accountability law.~~ The legislative
post audit committee may direct that one or more performance audit subjects are to be
included in a financial-compliance audit conducted pursuant to this subsection (12) not more
than once during a specific period of three fiscal years, in lieu of once every two fiscal years.

(c) The auditor to conduct ~~any~~ the financial-compliance audit required pursuant to this
subsection (12) shall be specified in accordance with K.S.A. 46-1122, and amendments
thereto. If the legislative post audit committee specifies under such statute that a firm, as
defined by K.S.A. 46-1112, and amendments thereto, is to perform all or part of the audit
work of such audit, such firm shall be selected and shall perform such audit work as provided
in K.S.A. 46-1123, and amendments thereto, and K.S.A. 46-1125 through 46-1127, and
amendments thereto. The audits required pursuant to this subsection (12) shall be con-
ducted in accordance with generally accepted governmental auditing standards. The ~~audits~~
financial-compliance audit required pursuant to this subsection (12) shall be conducted as
soon after the close of the fiscal year as practicable, but shall be completed no later than
six months after the close of the fiscal year. The post auditor shall annually compute the
reasonably anticipated cost of providing the financial-compliance audit pursuant to this
~~section~~ subsection (12), subject to review and approval by the contract audit committee
established by K.S.A. 46-1120, and amendments thereto. Upon such approval, the system
shall reimburse the division of post audit for the amount approved by the contract audit
committee. The furnishing of the financial-compliance audit pursuant to this ~~section~~ sub-
section (12) shall be a transaction between the legislative post auditor and the system and
shall be settled in accordance with the provisions of K.S.A. 75-5516, and amendments
thereto.

(d) Any internal assessment or examination of alternative investments of the system
performed by any person or entity employed or retained by the board which evaluates or
monitors the performance of alternative investments shall be reported to the legislative post
auditor so that such report may be reviewed in accordance with the annual financial-com-
pliance audits ~~provided in~~ conducted pursuant to this subsection ~~(12)(a)~~ (12).

Sec. 28. K.S.A. 74-4924 is hereby amended to read as follows: 74-4924. (1) Any person
who shall knowingly make any false statement, or who shall falsify or permit to be falsified
any record necessary for carrying out the intent of this act for the purpose of committing
fraud, shall be ~~guilty of a misdemeanor, and upon conviction shall be punished by a fine~~
~~not exceeding five hundred dollars ($500) or by imprisonment for not exceeding one (1)~~
~~year~~ subject to the provisions of K.S.A. 21-3904 and amendments thereto.

(2) Should any error in any records or in any calculation of the Kansas public employees
retirement system result in any member or beneficiary receiving more or less than he would
have been entitled to receive had the records or calculations been correct, the board shall
correct such error, and, as far as practicable, make future payments in such a manner that
the actuarial equivalent of the benefit to which such member or beneficiary was entitled
shall be paid~~, and to this end~~ and may recover any overpayments: ~~Provided,~~. In the event a
member has withdrawn, all or part of, ~~his~~ such member's accumulated contributions in a
manner not in compliance with the provisions of this act or the regulations of the system
the amount of such withdrawal, plus interest at a rate specified by the board, shall be
deducted from any amounts, including group insurance benefits, which shall become due
the member or ~~his~~ such member's beneficiaries under the provisions of this act.

Sec. 29. K.S.A. 1997 Supp. 74-4927, as amended by section 53 of 1997 Senate Bill No.
382, is hereby amended to read as follows: 74-4927. (1) The board may establish a plan of
death and long-term disability benefits to be paid to the members of the retirement system
as provided by this section. The long-term disability benefit shall not be payable until the
member has been prevented from carrying out each and every duty pertaining to the mem-
ber's employment as a result of sickness or injury for a period of 180 days and the annual
benefit shall not exceed an amount equal to 662/3% of the member's annual rate of com-
pensation on the date such disability commenced and shall be payable in equal monthly
installments. In the event that a member's compensation is not fixed at an annual rate but
on an hourly, weekly, biweekly, monthly or any other basis than annual, the board shall
prescribe by rule and regulation a formula for establishing a reasonable rate of annual
compensation to be used in determining the amount of the death or long-term disability
benefit for such member. Such plan shall provide that:

(A) For deaths occurring prior to January 1, 1987, the right to receive such death benefit
shall cease upon the member's attainment of age 70 or date of retirement whichever first
occurs. The right to receive such long-term disability benefit shall cease (i) for a member
who becomes eligible for such benefit before attaining age 60, upon the date that such
member attains age 65 or the date of such member's retirement, whichever first occurs, (ii)
for a member who becomes eligible for such benefit at or after attaining age 60, the date
that such member has received such benefit for a period of five years, upon the date that
such member attains age 70, or upon the date of such member's retirement, whichever first
occurs, (iii) for all disabilities incurred on or after January 1, 1987, for a member who
becomes eligible for such benefit at or after attaining age 70, the date that such member
has received such benefit for a period of 12 months or upon the date of such member's
retirement, whichever first occurs, and (iv) for all disabilities incurred on or after January
1, 1987, for a member who becomes eligible for such benefit at or after attaining age 75,
the date that such member has received such benefit for a period of six months or upon
the date of such member's retirement, whichever first occurs.

(B) Long-term disability benefit payments shall be in lieu of any accidental total disa-
bility benefit that a member may be eligible to receive under subsection (3) of K.S.A. 74-
4916 and amendments thereto. The member must make an initial application for social
security disability benefits and, if denied such benefits, the member must pursue and exhaust
all administrative remedies of the social security administration which include, but are not
limited to, reconsideration and hearings. Such plan may provide that any amount which a
member receives as a social security benefit or a disability benefit or compensation from
any source by reason of any employment including, but not limited, to, workers compen-
sation benefits may be deducted from the amount of ~~insured~~ long-term disability benefit
payments under such plan~~, except that not more than 50% of such workers compensation~~
~~benefits shall be deducted therefrom~~. During the period in which such member is pursuing
such administrative remedies prior to a final decision of the social security administration,
social security disability benefits may be estimated and may be deducted from the amount
of long-term disability benefit payments under such plan. Such ~~insured~~ long-term disability
payments shall accrue from the later of the 181st day of total disability or the first day upon
which the member ceases to draw compensation from the employer. If the social security
benefit, workers compensation benefit, other income or wages or other disability benefit by
reason of employment, or any part thereof, is paid in a lump-sum, the amount of the re-
duction shall be calculated on a monthly basis over the period of time for which the
lump-sum is given. In no case shall a member who is entitled to receive ~~insured~~ long-term
disability benefits receive less than $50 per month. As used in this section, ``workers com-
pensation benefits'' means the total award of disability benefit payments under the workers
compensation act notwithstanding any payment of attorney fees from such benefits as pro-
vided in the workers compensation act.

(C) The plan may include other provisions relating to qualifications for benefits; sched-
ules and graduation of benefits; limitations of eligibility for benefits by reason of termination
of employment or membership; conversion privileges; limitations of eligibility for benefits
by reason of leaves of absence, military service or other interruptions in service; limitations
on the condition of long-term disability benefit payment by reason of improved health;
requirements for medical examinations or reports; or any other reasonable provisions as
established by rule and regulation of uniform application adopted by the board.

(D) On and after April 30, 1981, the board may provide under the plan for the contin-
uation of long-term disability benefit payments to any former member who forfeits the
entitlement to continued service credit under the retirement system or continued assistance
in the purchase of retirement annuities under K.S.A. 74-4925 and amendments thereto and
to continued long-term disability benefit payments and continued death benefit coverage,
by reason of the member's withdrawal of contributions from the retirement system or the
repurchase of retirement annuities which were purchased with assistance received under
K.S.A. 74-4925 and amendments thereto. Such long-term disability benefit payments may
be continued until such individual dies, attains age 65 or is no longer disabled, whichever
occurs first.

(E) Any visually impaired person who is in training at and employed by a sheltered
workshop for the blind operated by the secretary of social and rehabilitation services and
who would otherwise be eligible for the ~~insured~~ long-term disability benefit as described in
this section shall not be eligible to receive such benefit due to visual impairment as such
impairment shall be determined to be a preexisting condition.

(2) (A) In the event that a member becomes eligible for a long-term disability benefit
under the plan authorized by this section such member shall be given participating service
credit for the entire period of such disability. Such member's final average salary shall be
computed in accordance with subsection (17) of K.S.A. 74-4902 and amendments thereto
except that the years of participating service used in such computation shall be the years of
salaried participating service.

(B) In the event that a member eligible for a long-term disability benefit under the plan
authorized by this section shall be disabled for a period of five years or more immediately
preceding retirement, such member's final average salary shall be adjusted upon retirement
by the actuarial salary assumption rates in existence during such period of disability. Effec-
tive July 1, 1993, such member's final average salary shall be adjusted upon retirement by
5% for each year of disability after July 1, 1993, but before July 1, 1998. Effective July 1,
1998, such member's final average salary shall be adjusted upon retirement by an amount
equal to the lesser of: (i) The percentage increase in the consumer price index for all urban
consumers as published by the bureau of labor statistics of the United States department of
labor minus 1%; or (ii) four percent per annum, measured from the month the disability
occurs to the month that is two months prior to the month of retirement, for each year of
disability after July 1, 1998.

(C) In the event that a member eligible for a long-term disability benefit under the plan
authorized by this section shall be disabled for a period of five years or more immediately
preceding death, such member's current annual rate shall be adjusted by the actuarial salary
assumption rates in existence during such period of disability. Effective July 1, 1993, such
member's current annual rate shall be adjusted upon death by 5% for each year of disability
after July 1, 1993, but before July 1, 1998. Effective July 1, 1998, such member's current
annual rate shall be adjusted upon death by an amount equal to the lesser of: (i) The per-
centage increase in the consumer price index for all urban consumers published by the
bureau of labor statistics of the United States department of labor minus 1%; or (ii) four
percent per annum, measured from the month the disability occurs to the month that is two
months prior to the month of death, for each year of disability after July 1, 1998.

(3) (A) To carry out the legislative intent to provide, within the funds made available
therefor, the broadest possible coverage for members who are in active employment or
involuntarily absent from such active employment, the plan of death and long-term disability
benefits shall be subject to adjustment from time to time by the board within the limitations
of this section. The plan may include terms and provisions which are consistent with the
terms and provisions of group life and long-term disability policies usually issued to those
employers who employ a large number of employees. The board shall have the authority to
establish and adjust from time to time the procedures for financing and administering the
plan of death and long-term disability benefits authorized by this section. Either the insured
death benefit or the insured disability benefit or both such benefits may be financed directly
by the system or by one or more insurance companies authorized and licensed to transact
group life and group accident and health insurance in this state.

(B) The board may contract with one or more insurance companies, which are author-
ized and licensed to transact group life and group accident and health insurance in Kansas,
to underwrite or to administer or to both underwrite and administer either the insured
death benefit or the ~~insured~~ long-term disability benefit or both such benefits. Each such
contract with an insurance company under this subsection shall be entered into on the basis
of competitive bids solicited and administered by the board. Such competitive bids shall be
based on specifications prepared by the board.

(i) In the event the board purchases one or more policies of group insurance from such
company or companies to provide either the insured death benefit or the ~~insured~~ long-term
disability benefit or both such benefits, the board shall have the authority to subsequently
cancel one or more of such policies and, notwithstanding any other provision of law, to
release each company which issued any such canceled policy from any liability for future
benefits under any such policy and to have the reserves established by such company under
any such canceled policy returned to the system for deposit in the group insurance reserve
of the fund.

(ii) In addition, the board shall have the authority to cancel any policy or policies of
group life and long-term disability insurance in existence on the effective date of this act
and, notwithstanding any other provision of law, to release each company which issued any
such canceled policy from any liability for future benefits under any such policy and to have
the reserves established by such company under any such canceled policy returned to the
system for deposit in the group insurance reserve of the fund. Notwithstanding any other
provision of law, no premium tax shall be due or payable by any such company or companies
on any such policy or policies purchased by the board nor shall any brokerage fees or
commissions be paid thereon.

(4) (A) There is hereby created in the state treasury the group insurance reserve fund.
Investment income of the fund shall be added or credited to the fund as provided by law.
The cost of the plan of death and long-term disability benefits shall be paid from the group
insurance reserve fund, which shall be administered by the board. Each participating em-
ployer shall appropriate and pay to the system in such manner as the board shall prescribe
in addition to the employee and employer retirement contributions an amount equal to .6%
of the amount of compensation on which the members' contributions to the Kansas public
employees retirement system are based for deposit in the group insurance reserve fund.

(B) The director of the budget and the governor shall include in the budget and in the
budget request for appropriations for personal services a sum to pay the state's contribution
to the group insurance reserve fund as provided by this section and shall present the same
to the legislature for allowances and appropriation.

(C) The provisions of subsection (4) of K.S.A. 74-4920 and amendments thereto shall
apply for the purpose of providing the funds to make the contributions to be deposited to
the group insurance reserve fund.

(D) Any dividend or retrospective rate credit allowed by an insurance company or com-
panies shall be credited to the group insurance reserve fund and the board may take such
amounts into consideration in determining the amounts of the benefits under the plan
authorized by this section.

(5) The death benefit provided under the plan of death and long-term disability benefits
authorized by this section shall be known and referred to as insured death benefit. The
long-term disability benefit provided under the plan of death and long-term disability ben-
efits authorized by this section shall be known and referred to as ~~insured~~ long-term disability
benefit.

(6) The board is hereby authorized to establish an optional death benefit plan. Except
as provided in subsection (7), such optional death benefit plan shall be made available to
all employees who are covered or may hereafter become covered by the plan of death and
long-term disability benefits authorized by this section. The cost of the optional death benefit
plan shall be paid by the applicant either by means of a system of payroll deductions or
direct payment to the board. The board shall have the authority and discretion to establish
such terms, conditions, specifications and coverages as it may deem to be in the best interest
of the state of Kansas and its employees which should include term death benefits for the
person's period of active state employment regardless of age, but in no case, on and after
January 1, 1989, shall the maximum allowable coverage be less than $200,000. The cost of
the optional death benefit plan shall not be established on such a basis as to unreasonably
discriminate against any particular age group. The board shall have full administrative re-
sponsibility, discretion and authority to establish and continue such optional death benefit
plan and the director of accounts and reports of the department of administration shall when
requested by the board and from funds appropriated or available for such purpose establish
a system to make periodic deductions from state payrolls to cover the cost of the optional
death benefit plan coverage under the provisions of this subsection (6) and shall remit all
deductions together with appropriate accounting reports to the system. There is hereby
created in the state treasury the optional death benefit plan reserve fund. Investment income
of the fund shall be added or credited to the fund as provided by law. All funds received by
the board, whether in the form of direct payments, payroll deductions or otherwise, shall
be accounted for separately from all other funds of the retirement system and shall be paid
into the optional death benefit plan reserve fund, from which the board is authorized to
make the appropriate payments and to pay the ongoing costs of administration of such
optional death benefit plan as may be incurred in carrying out the provisions of this sub-
section (6).

(7) Any employer other than the state of Kansas which is currently a participating em-
ployer of the Kansas public employees retirement system or is in the process of affiliating
with the Kansas public employees retirement system may also elect to affiliate for the pur-
poses of subsection (6). All such employers shall make application for affiliation with such
system, to be effective on January 1 next following application. Such optional death benefit
plan shall not be available for employees of employers specified under this subsection until
after July 1, 1988.

Sec. 30. K.S.A. 1997 Supp. 74-4936a, as amended by section 63 of 1997 Senate Bill
No. 382, is hereby amended to read as follows: 74-4936a. Any employee of a participating
employer who is a member of the Kansas public employees retirement system, who was
previously employed in a teaching position with a public school system of another state, in
a foreign teaching service in an overseas dependents' school, in a recognized teacher
exchange program or in any program where a teacher is chosen by the Kansas department
of education to teach in a foreign country and which service otherwise meets the require-
ments of an employee as prescribed in subsection (14) of K.S.A. 74-4902 or subsection (4)
of K.S.A. 74-4932 and amendments thereto may elect to purchase ~~prior~~ service for such
out-of-state public school or overseas teaching employment. At the election of the member,
the benefit for each such year of employment shall be equal to either 1% or 1.75% of the
final average salary of any such member. For any member who elected to purchase service
credit as provided in this section prior to the effective date of this act at the 1% rate, such
member may elect to purchase such service credit at an additional amount of .75% of final
average salary of such member in a lump-sum amount as otherwise provided in this sub-
section. Subject to the provisions of section 83 and amendments thereto, such member may
purchase such ~~prior~~ service credit by making application therefor prior to date of retirement
at an additional rate of contribution in addition to the employee's rate of contribution as
provided in K.S.A. 74-4919 and amendments thereto, based upon the member's attained
age at the time of purchase and using actuarial assumptions and tables in use by the retire-
ment system at the time of such purchase. Such additional rate of contribution shall com-
mence at the beginning of the quarter following such election and shall remain in effect
until all quarters of such service have been purchased. Subject to the provisions of section
83 and amendments thereto, any such member may purchase such ~~prior~~ service credit as
described in this section by electing to effect such purchase by means of a single lump-sum
payment in lieu of employee contributions as provided in this section in an amount equal
to the then present value of the benefits being purchased as determined by the actuary
using the member's attained age, annual compensation at the time of purchase and the
actuarial assumptions and tables then in use by this system. The lump-sum payment shall
be made immediately upon being notified of the amount due.

Sec. 31. K.S.A. 1997 Supp. 74-4937 is hereby amended to read as follows: 74-4937. (1)
The normal retirement date of a member of the system who is in school employment and
who is subject to K.S.A. 74-4940 and amendments thereto shall be the first day of the month
coinciding with or following termination of employment not followed by employment with
any participating employer within 30 days and the end of the school fiscal year in which
the member attains age 65 or, commencing July 1, 1986, age 65 or age 60 with the com-
pletion of 35 years of credited service or at any age with the completion of 40 years of
credited service, or commencing July 1, 1993, any alternative normal retirement date already
prescribed by law or age 62 with the completion of 10 years of credited service or the first
day of the month coinciding with or following the date that the total of the number of years
of credited service and the number of years of attained age of the member is equal to or
more than 85. Each member upon giving prior notice to the appointing authority and the
retirement system may retire on the normal retirement date or the first day of any month
thereafter.

(2) Any member who is in school employment and who is subject to K.S.A. 74-4940
and amendments thereto may retire before such member's normal retirement date on the
first day of the month coinciding with or following termination of employment not followed
by employment with any participating employer within 30 days and the completion of the
school fiscal year in which such member attained age 55 with the completion of 10 years of
credited service, upon the filing with the office of the retirement system of an application
for retirement in such form and manner as the board shall prescribe.

(3) No member who begins a year of school employment and who is subject to K.S.A.
74-4940 and amendments thereto may retire until the first day of the month coinciding with
or following the end of the current school fiscal year unless good cause is shown and such
retirement is agreed to by the participating employer and the board.

(4) As used in this section ``school fiscal year'' means the twelve-month period beginning
July 1 and ending June 30.

Sec. 32. K.S.A. 1997 Supp. 74-4939 is hereby amended to read as follows: 74-4939. (1)
Except as otherwise provided in this section, the provisions of K.S.A. 74-4919 and 74-4920,
and amendments thereto, shall apply to employee and employer contributions and obliga-
tions.

(2) The employer contribution rate for participating employers who are eligible em-
ployers as specified in subsections (1), (2) and (3) of K.S.A. 74-4931 and amendments thereto
shall be as certified by the board. Participating employers shall certify to the state board of
education before September 15 of each year the anticipated total compensation to be paid
during the next fiscal year to employees who are or are to become members. The state
board of education shall transmit the information necessary to the division of the budget
and the governor who shall include in the budget and budget document each year thereafter
provisions for the transfer from the state general fund of sufficient sums to satisfy the
participating employer's obligation under this act. The director of accounts and reports shall
make a transfer therefor to the system quarterly, at the same time such employee contri-
butions are remitted by such participating employers. Such transfer from the general fund
of sufficient sums to satisfy the participating employer's obligation shall not include any
adjustments for individual employee's service in prior periods and any required payment
by a participating employer pursuant to K.S.A. 74-4990 and amendments thereto and section
51 and amendments thereto. The employer's obligation for such adjustments shall be paid
by the participating employer. Transfers required by this subsection shall be provided for
annually by act of the legislature.

(3) Participating employers who are eligible employers as specified in subsection (4) of
K.S.A. 74-4931 and amendments thereto shall pay to the system employer contributions at
a rate of contribution as certified by the board.

(4) Upon the effective date of this act, the transfers for the employer's obligation pur-
suant to subsection (2) for the quarter commencing on January 1, 1987, shall be made on
July 1, 1987, together with interest thereon at the rate of 6.72% per annum from the date
the payment would have been made as provided in this section immediately prior to this
amendment until the date paid.``;

Sec. 33. K.S.A. 1997 Supp. 74-4952, as amended by section 65 of 1997 Senate Bill No.
382, is hereby amended to read as follows: 74-4952. As used in K.S.A. 74-4951 et seq. and
amendments thereto:

(1) ``Accumulated contributions'' means the sum of all contributions by a member to
the system which shall be credited to the member's account with interest allowed thereon
after June 30, 1982.

(2) ``Disability'' means the total inability to perform permanently the duties of the po-
sition of a policeman or fireman.

(3) ``Eligible employer'' means any city, county, township or other political subdivision
of the state employing one or more employees as firemen or policemen.

(4) ``Employee'' means any policeman or fireman employed by a participating employer
whose employment for police or fireman purposes is not seasonal or temporary and requires
at least 1,000 hours of work per year.

(5) ``Entry date'' means the date as of which an eligible employer joins the system; the
first entry date pursuant to this act is January 1, 1967.

(6) ``Final average salary'' means:

(a) For members who are first hired as an employee, as defined in subsection (4), before
July 1, 1993, the average highest annual compensation paid to a member for any three of
the last five years of participating service immediately preceding retirement or termination
of employment, or if participating service is less than three years, then the average annual
compensation paid to the member during the full period of participating service, or if a
member has less than one calendar year of participating service, then the member's final
average salary shall be computed by multiplying the member's highest monthly salary re-
ceived in that year by 12;

(b) for members who are first hired as an employee, as defined in subsection (4), on
and after July 1, 1993, the average highest annual salary, as defined in subsection (34) of
K.S.A. 74-4902 and amendments thereto, paid to a member for any three of the last five
years of participating service immediately preceding retirement or termination of employ-
ment, or if participating service is less than three years, then the average annual salary, as
defined in subsection (34) of K.S.A. 74-4902 and amendments thereto, paid to the member
during the full period of participating service, or if a member has less than one calendar
year of participating service, then the member's final average salary shall be computed by
multiplying the member's highest monthly salary received in that year by 12;

(c) for purposes of subparagraphs (a) and (b) of this subsection, the date that such
member is first hired as an employee for members who are employees of employers that
elected to participate in the system on or after January 1, 1994, shall be the date that such
employee's employer elected to participate in the system; and

(d) for any application to purchase or repurchase service credit for a certain period of
service as provided by law received by the system after May 17, 1994, for any member who
will have contributions deducted from such member's compensation at a percentage rate
equal to two or three times the employee's rate of contribution or who will have contribu-
tions deducted from such member's compensation at an additional rate of contribution, in
addition to the employee's rate of contribution as provided in K.S.A. 74-4919 and amend-
ments thereto or will begin paying to the system a lump-sum amount for such member's
purchase or repurchase, and such deductions or lump-sum payment commences after the
commencement of the first payroll period in the third quarter, ``final average salary'' shall
not include any amount of compensation or salary which is based on such member's pur-
chase or repurchase. Any application to purchase or repurchase multiple periods of service
shall be treated as multiple applications.

(e) Notwithstanding any other provision of this section, for purposes of applying limits
as provided by the federal internal revenue code, salary shall have the meaning as deter-
mined pursuant to section 83 and amendments thereto.

(7) ``Retirement benefit'' means a monthly income or the actuarial equivalent thereof
paid in such manner as specified by the member as provided under the system or as oth-
erwise allowed to be paid at the discretion of the board, with benefits accruing from the
first day of the month coinciding with or following retirement and ending on the last day of
the month in which death occurs. Upon proper identification such surviving spouse may
negotiate the warrant issued in the name of the retirant.

(8) ``Normal retirement date'' means the date on or after which a member may retire
with eligibility for retirement benefits for age and service as provided in subsections (1) and
(3) of K.S.A. 74-4957 and amendments thereto;

(9) ``Retirement system'' or ``system'' means the Kansas police and firemen's retirement
system as established by this act and as it may be hereafter amended.

(10) ``Service-connected'' means with regard to a death or any physical or mental dis-
ability, any such death or disability resulting from external force, violence or disease occa-
sioned by an act of duty as a policeman or fireman and, for any member after five years of
credited service, ~~includes~~ there shall be a rebuttable presumption, that any death or disability
resulting from a heart disease or disease of the lung or respiratory tract or cancer as provided
in this subsection, except that in the event that the member ceases to be a contributing
member ~~except~~ by reason of a service-connected disability for a period of six months or
more and then again becomes a contributing member, the provision relating to death or
disability resulting from a heart disease, disease of the lung or respiratory tract or cancer as
provided in this subsection shall not apply until such member has again become a contrib-
uting member for a period of not less than two years or unless clear and precise evidence
is presented that the heart disease, disease of the lung or respiratory tract or cancer as
provided in this subsection was in fact occasioned by an act of duty as a policeman or
fireman. If the retirement system receives evidence to the contrary of such presumption, the
burden of proof shall be on the member or other party to present evidence that such death
or disability was service-connected. The provisions of this section relating to the presumption
that the death or disability resulting from cancer is service-connected shall only apply if the
condition that caused the death or disability is a type of cancer which may, in general, result
from exposure to heat, radiation or a known carcinogen.

(11) Prior to July 1, 1998, ``fireman'' or ``firemen'' means an employee assigned to the
fire department and engaged in the fighting and extinguishment of fires and the protection
of life and property therefrom or in support thereof and who is specifically designated,
appointed, commissioned or styled as such by the governing body or city manager of the
participating employer and certified to the retirement system as such. On and after July 1,
1998, ``fireman'' or ``firemen'' means an employee assigned to the fire department whose
principal duties are engagement in the fighting and extinguishment of fires and the protection
of life and property therefrom and who is specifically designated, appointed, commissioned
or styled as such by the governing body or city manager of the participating employer and
certified to the retirement system as such.

(12) Prior to July 1, 1998, ``police,'' ``policeman'' or ``policemen'' means an employee
assigned to the police department and engaged in the enforcement of law and maintenance
of order within the state and its political subdivisions, including sheriffs and sheriffs' dep-
uties, or in support thereof and who is specifically designated, appointed, commissioned or
styled as such by the governing body or city manager of the participating employer and
certified to the retirement system as such. On and after July 1, 1998, ``police,'' ``policeman''
or ``policemen'' means an employee assigned to the police department whose principal duties
are engagement in the enforcement of law and maintenance of order within the state and its
political subdivisions, including sheriffs and sheriffs' deputies; who has successfully com-
pleted the required course of instruction for law enforcement officers approved by the Kansas
law enforcement training center and is certified pursuant to the provisions of K.S.A. 74-
5607a and amendments thereto; and who is specifically designated, appointed, commissioned
or styled as such by the governing body or city manager of the participating employer and
certified to the retirement system as such. Notwithstanding any other provisions of this
subsection, ``police,'' ``policeman'' or ``policemen'' shall include a city or county correctional
officer who is specifically designated, appointed, commissioned or styled as such by the
governing body or city manager of the participating employer and certified to the retirement
system as such commencing on July 1, 1998, and ending on June 30, 1999.

(13) Except as otherwise defined in this act, words and phrases used in K.S.A. 74-4951
et seq. and amendments thereto, shall have the same meanings ascribed to them as are
defined in K.S.A. 74-4902 and amendments thereto.

Sec. 34. K.S.A. 74-4955a is hereby amended to read as follows: 74-4955a. (1) Except
as provided in subsection (4), each member of the system who was appointed or employed
prior to July 1, 1989, may elect to be covered by the provisions of K.S.A. 74-4957a, 74-
4958a, 74-4960a, 74-4963a and 74-4964a, and amendments thereto, on the first day of the
first payroll period of such member coinciding with or following the receipt of such election
in the office of the retirement system, only by filing with the board of trustees of the system
prior to January 1, 1990, a written election to be covered by such provisions. Failure to file
such written election shall be presumed to be an election not to be covered by such pro-
visions. Such election, whether to become a member or not to become a member, shall be
irrevocable.

(2) Each person appointed or employed on or after July 1, 1989, shall be covered by
the provisions of K.S.A. 74-4957a, 74-4958a, 74-4960a, 74-4963a and 74-4964a, and amend-
ments thereto.

(3) The provisions of this section shall be effective on and after July 1, 1989.

(4) Each member of the system who was appointed or employed prior to July 1, 1989,
and who did not elect to be covered by the provisions specified in subsection (1) prior to
January 1, 1990, may elect to be covered by such provisions by filing a written election as
provided in subsection (1) during the period commencing July 1, 1990, and ending Septem-
ber 30, 1990.

(5) Except as provided in this subsection, each member of the system who was appointed
or employed prior to July 1, 1989, and who did not elect to be covered by the provisions
specified in subsection (1) as provided in this section, may elect to be covered by such
provisions by filing a written election as provided in subsection (1). The provisions of this
subsection shall take effect on and after the date the system receives a private letter ruling
from the internal revenue service that the provisions of this subsection do not contravene
federal law. The period of such election as provided by this subsection shall commence on
the date of receipt by the system of such private letter ruling, and shall end 90 days thereafter.
Any member who elects as provided by this subsection shall pay the cost of such election by
means of a single lump-sum payment in an amount equal to the then present value of the
benefits being purchased as determined by the actuary using the member's attained age,
annual compensation at the time of the purchase and the actuarial assumptions and tables
then in use by the system.

Sec. 35. K.S.A. 1997 Supp. 74-4956, as amended by section 68 of 1997 Senate Bill No.
382, is hereby amended to read as follows: 74-4956. (1) Prior service shall be credited as
follows:

(a) Each member shall receive:

(i) Full credit for all employment, whether or not continuous, as either a policeman or
fireman prior to the entry date with such member's employer who is such member's em-
ployer on the entry date;

(ii) full credit for all employment, whether or not continuous, as either a police or
fireman prior to the entry date of such police or firemen's employer, with a participating
employer, if such member has at least 20 years of credited service; and

(iii) for all continuous employment with the same employer other than either as police-
man or fireman, immediately preceding such service as a policeman or fireman, ~~12 months~~
one month of credit for each 24 two months of service. Any member or retirant who has
been credited with prior service as provided in this section may apply to the board on such
forms as the board prescribes for prior service credit with a participating employer under
the Kansas police and firemen's retirement system other than such member's entry date
employer. Each member shall receive full credit for all employment as either a policeman
or fireman with such other participating employers and shall receive ~~12 months~~ one month
of credit for each 24 two months of continuous service with other participating employers
for continuous employment preceding service as a policeman or fireman. Upon receipt of
written verification of such employment from such other participating employer, the board
may grant such additional prior service credit. With respect to a retirant, the board shall
adjust the amount of the retirement benefit accordingly commencing with the next monthly
benefit payment due following receipt of written verification. In the case of any person other
than a retirant receiving a retirement benefit, such person may make application for an
adjustment in the benefit amount in the same manner as a member or retirant, and in such
case the adjustment in the benefit amount shall be determined by the board upon the advice
of the actuary, and shall commence with the next monthly benefit payment due following
receipt of written verification, except that no additional prior service credit shall be granted
for any service with another participating employer for which benefits are being received
or will be received. A retirant or any other person receiving a retirement benefit shall not
be entitled to any retroactive adjustment in the amount of retirement benefit as a result of
the board granting such additional prior service credit.

If a member was employed as a fireman, other than as a volunteer fireman, by a township
which is annexed by a participating employer the member's retirement benefits and death
and disability benefits shall be computed on the basis of credited service. Continuous service
as a fireman with a township prior to annexation by a member, who became a member
immediately following the annexation, shall be considered credited service.

No such service shall be considered credited service for the purpose of computing years
of service if such fireman is receiving or will become eligible to receive benefits as a result
of such service with the township.

(b) Leaves of absence and military service shall not be counted as breaks in continuous
employment; however, military service which is preceded within 30 days and followed by
employment with a participating employer shall be credited, except that after July 1, 1974,
not more than five years credit for military service shall be granted hereunder to the extent
required by the provisions of USERRA, but leaves of absence shall not be credited.

(2) Participating service shall be credited as follows: (a) A member shall receive credit
for participating service with a participating employer in accordance with the rules and
regulations established by the board. No more than one calendar quarter of participating
service shall be credited for employment within any one calendar quarter.

(b) Leaves of absence shall not be counted as a termination of employment provided
the member leaves such member's accumulated contributions on deposit with the system
and returns to employment with the employer granting such leave; however, the period of
leave of absence shall not be credited service.

(c) To the extent required under the provisions of USERRA, military service shall not
count as a break in continuous employment.

(d) Termination of employment with a participating employer followed by employment
with the same or another participating employer within two years shall not constitute a
termination of membership provided the member leaves such member's accumulated con-
tributions on deposit with the system; however, the period while not employed shall not be
credited.

(3) In determining the number of years of credited service for calculation of retirement
benefits a fractional year of six months or more of credited service shall be considered as
one year and a fractional year of less than six months of credited service shall be disregarded.

Sec. 36. K.S.A. 1997 Supp. 74-4957 is hereby amended to read as follows: 74-4957. (1)
The normal retirement date for a member of the system who is appointed or employed
prior to July 1, 1989, and who does not make an election pursuant to K.S.A. 74-4955a and
amendments thereto shall be the first day of the month coinciding with or following termi-
nation of employment not followed by employment with any participating employer within
30 days and the attainment of age 55 and the completion of 20 years of credited service.
Any member may retire on such member's normal retirement date or on the first day of
any month thereafter.

(2) Early retirement. Any member who is appointed or employed prior to July 1, 1989,
and who does not make an election pursuant to K.S.A. 74-4955a and amendments thereto
may retire before such member's normal retirement date on the first day of any month
coinciding with or following termination of employment not followed by employment with
any participating employer within 30 days and the attainment of age 50 and the completion
of 20 years of credited service.

(3) Notwithstanding the provisions of subsections (1) and (2) of this section and K.S.A.
74-4955a, 74-4957a, 74-4958a, 74-4960a, 74-4963a and 74-4964a and amendments thereto,
the normal retirement date for any member who was, up to the entry date of such member's
employer, covered by a pension system under the provisions of K.S.A. 13-14a01 to 13-14a14,
inclusive, or 14-10a01 to 14-10a15, inclusive, and amendments thereto, shall be the first
day of the month coinciding with or following the attainment of age 50 and the completion
of 25 years of credited service.

(4) In no event shall a member be eligible to retire until such member has been a
contributing member of the system for 12 months of participating service, and shall have
given such member's employer prior notice of retirement.

(5) If a retirant who retired on or after July 1, 1994, is employed, elected or appointed
in or to any position or office for which compensation for service is paid~~, during calendar~~
~~year 1994, in an amount equal to $11,160 or more; or during calendar year 1995 and all~~
~~calendar years thereafter,~~ in an amount equal to ~~$11,280~~ $15,000 or more in any one such
calendar year, by the same state agency or the same police or fire department of any county,
city, township or special district or the same sheriff's office of a county during the final two
years of such retirant's participation, such retirant shall not receive any retirement benefit
for any month for which such retirant serves in such position or office. The participating
employer shall report to the system within 30 days of when the compensation paid to the
retirant is equal to or exceeds any limitation provided by this section. Any retirant employed
by a participating employer in the Kansas police and firemen's retirement system shall not
make contributions nor receive additional credit under such system for such service except
as provided by this section. Upon request of the executive secretary of the system, the
secretary of revenue shall provide such information as may be needed by the executive
secretary to carry out the provisions of this act.

Sec. 37. K.S.A. 1997 Supp. 74-4957a is hereby amended to read as follows: 74-4957a.
(1) The normal retirement date for a member of the system who is appointed or employed
on or after July 1, 1989, or who makes an election pursuant to K.S.A. 74-4955a and amend-
ments thereto to be covered by the provisions of this act shall be the first day of the month
coinciding with or following termination of employment not followed by employment with
any participating employer within 30 days and the attainment of age 55 and the completion
of 20 years of credited service, age 50 and the completion of 25 years of credited service or
age 60 with the completion of 15 years of credited service. Any such member may retire on
such member's normal retirement date or on the first day of any month thereafter.

(2) Any member may retire before such member's normal retirement date on the first
day of any month coinciding with or following termination of employment not followed by
employment with any participating employer within 30 days and the attainment of age 50
and the completion of 20 years of credited service.

(3) In no event shall a member be eligible to retire until such member has been a
contributing member of the system for 12 months of participating service, and shall have
given such member's employer prior notice of retirement.

(4) If a retirant who retired on or after July 1, 1996, is employed, elected or appointed
in or to any position or office for which compensation for service is paid~~, during calendar~~
~~year 1995 and all calendar years thereafter,~~ in an amount equal to ~~$11,280~~ $15,000 or more
in any one such calendar year, by the same state agency or the same police or fire department
of any county, city, township or special district or the same sheriff's office of a county during
the final two years of such retirant's participation, such retirant shall not receive any retire-
ment benefit for any month for which such retirant serves in such position or office. The
participating employer shall report to the system within 30 days of when the compensation
paid to the retirant is equal to or exceeds any limitation provided by this section. Any retirant
employed by a participating employer in the Kansas police and firemen's retirement system
shall not make contributions nor receive additional credit under such system for such service
except as provided by this section. Upon request of the executive secretary of the system,
the secretary of revenue shall provide such information as may be needed by the executive
secretary to carry out the provisions of this act.

(5) The provisions of this section shall be effective on and after July 1, 1989, and shall
apply only to members who were appointed or employed prior to July 1, 1989, and who
made an election pursuant to K.S.A. 74-4955a and amendments thereto; and persons ap-
pointed or employed on or after July 1, 1989.

Sec. 38. K.S.A. 1997 Supp. 74-4960, as amended by section 72 of 1997 Senate Bill No.
382, is hereby amended to read as follows: 74-4960. (1) If any active contributing member
becomes totally and permanently disabled due to service-connected causes as defined in
subsection (10) of K.S.A. 74-4952 and amendments thereto, such member shall be retired
and the following benefits shall become payable and shall continue until the member's death
or until the member recovers from the disability if: A report of the event in a form acceptable
to the board is filed in the office of the executive secretary of the board within 220 days
after the date of the event or act of duty causing such disability; and an application for such
benefit, in such form and manner as the board prescribes, is filed by the member or the
member's authorized representative in the office of the executive secretary of the board
within two years of the date of disability:

(a) On and after July 1, 1993, the member shall receive a retirement benefit equal to
50% of the member's final average salary or, if the member has no dependents, as defined
in subsection (1)(b), the retirement benefit the member would have been entitled to as
provided under K.S.A. 74-4958 and amendments thereto had the member retired, which-
ever is greater. Such benefit shall accrue from the day upon which the member ceases to
draw compensation.

(b) Each of the member's children under the age of 18 years or each of the member's
children under the age of 23 years who is a full-time student as provided in K.S.A. 74-49,117
and amendments thereto shall receive an annual benefit equal to 10% of the member's final
average salary. Such benefit shall accrue from the day upon which the member ceases to
draw compensation and shall end on the last day of the month in which each such child or
children shall attain the age of 18 years or die, whichever occurs earlier or in which such
children attain the age of 23 years, if such child is a full-time student as provided in K.S.A.
74-49,117 and amendments thereto. Commencing on the effective date of this act, any child
who was receiving benefits pursuant to this section and who had such benefits terminated
by reason of such child's marriage, shall be entitled to once again receive benefits pursuant
to this section subject to the limitations contained in this section, except that such child shall
not be entitled to recover any benefits not received after the termination of benefits by
reason of such child's marriage but before the effective date of this act.

(c) In no case shall the total of the benefits payable under paragraphs (a) and (b) of this
subsection (1) be in excess of 75% of the member's final average salary.

(d) In the event a member who is retired under subsection (1) dies within two years
after the date of such retirement and no benefits are payable under subsection (3) of K.S.A.
74-4958 and amendments thereto, then benefits may be payable under subsection (1) of
K.S.A. 74-4959 and amendments thereto.

(e) In the event a member who is retired under subsection (1) dies more than two years
after the date of such retirement, and the proximate cause of such death is the service-
connected cause from which the disability resulted and no benefits are payable under sub-
section (3) of K.S.A. 74-4958 and amendments thereto, then benefits may be payable under
subsection (1) of K.S.A. 74-4959 and amendments thereto. The provisions of this paragraph
(e) of this subsection (1) shall apply in all cases of such members who die after June 30,
1978.

(f) In the event a member who is retired under subsection (1) dies after the date of
such retirement, and no benefits are payable under paragraphs (d) and (e) of subsection
(1), nor under subsection (3) of K.S.A. 74-4958 and amendments thereto, the following
benefits shall be payable:

(i) To the member's spouse, if lawfully wedded to the member at the time of the mem-
ber's death, a lump-sum benefit equal to 50% of the member's final average salary at the
time of the member's retirement.

(ii) To the member's spouse, if lawfully wedded to the member at the time of the
member's death, an annual benefit equal to 50% of the member's retirement benefit payable
in monthly installments, to accrue from the first day of the month following the member's
date of death and ending on the last day of the month in which the spouse dies. Commencing
on the effective date of this act, any surviving spouse, who was receiving benefits pursuant
to this section and who had such benefits terminated by reason of such spouse's remarriage,
shall be entitled to once again receive benefits pursuant to this section, except that such
surviving spouse shall not be entitled to recover any benefits not received after the termi-
nation of benefits by reason of such surviving spouse's remarriage but before the effective
date of this act. If there is no surviving spouse, or if after the death of the spouse there
remain one or more children under the age of 18 years or one or more children under the
age of 23 years who is a full-time student as provided in K.S.A. 74-49,117 and amendments
thereto, the annual spouse's benefit shall be payable, subject to the provisions of section 83
and amendments thereto, in equal shares to such children and each child's share shall end
on the last day of the month in which such child attains the age of 18 years or dies, whichever
occurs earlier or in which such child attains the age of 23 years, if such child is a full-time
student as provided in K.S.A. 74-49,117 and amendments thereto. Commencing on the
effective date of this act, any child who was receiving benefits pursuant to this section and
who had such benefits terminated by reason of such child's marriage, shall be entitled to
once again receive benefits pursuant to this section subject to the limitations contained in
this section, except that such child shall not be entitled to recover any benefits not received
after the termination of benefits by reason of such child's marriage but before the effective
date of this act.

The provisions of paragraph (f) of subsection (1) shall apply in all cases of such members
who die after December 1, 1984.

(2) (a) If any active contributing member, prior to such member's normal retirement,
becomes totally and permanently disabled for a period of 180 days from causes not service-
connected, and not as the result of a willfully negligent or intentional act of the member,
such member shall be retired and the following benefit shall become payable and shall
continue until the member's death or until the member recovers from such disability, which-
ever occurs first, if a report of the disability in a form acceptable to the board is filed in the
office of the executive secretary of the board within 220 days after the date of the com-
mencement of such disability and if an application for such benefit in such form and manner
as the board shall prescribe is filed in the office of the executive secretary of the board
within two years of the date of disability:

A retirement benefit equal to 2.5% of the member's final average salary multiplied by
the number of years of credited service or the retirement benefit the member would have
been entitled to as provided under K.S.A. 74-4958 and amendments thereto had the member
retired, whichever is greater, multiplied by the number of years of credited service except
that such retirement benefit shall be at least equal to 25% of the member's final average
salary but shall not exceed the amount of the retirement benefit provided in paragraph (a)
of subsection (1). Such benefit shall not become payable until satisfactory evidence shall be
presented to the board that the member is and has been totally and permanently disabled
for a period of 180 days, but benefits shall accrue from the day upon which the member
ceases to draw compensation.

(b) In the event a member who is retired under subsection (2) dies after the date of
such retirement, and no benefits are payable under subsection (3) of K.S.A. 74-4958 and
amendments thereto, the following benefits shall be payable:

(i) To the member's spouse, if lawfully wedded to the member at the time of the mem-
ber's death, a lump-sum benefit equal to 50% of the member's final average salary at the
time of the member's retirement.

(ii) To the member's spouse, if lawfully wedded to the member at the time of the
member's death, an annual benefit equal to 50% of the member's retirement benefit payable
in monthly installments, to accrue from the first day of the month following the member's
date of death and ending on the last day of the month in which the spouse dies. Commencing
on the effective date of this act, any surviving spouse, who was receiving benefits pursuant
to this section and who had such benefits terminated by reason of such spouse's remarriage,
shall be entitled to once again receive benefits pursuant to this section, except that such
surviving spouse shall not be entitled to recover any benefits not received after the termi-
nation of benefits by reason of such surviving spouse's remarriage but before the effective
date of this act. If there is no surviving spouse, or if after the death of the spouse there
remain one or more children under the age of 18 years or one or more children under the
age of 23 years who are full-time students as provided in K.S.A. 74-49,117 and amendments
thereto, the annual spouse's benefit shall be payable, subject to the provisions of section 83
and amendments thereto, in equal shares to such children and each child's share shall end
on the last day of the month in which such child attains the age of 18 years or dies, whichever
occurs earlier or in which such child attains the age of 23 years, if such child is a full-time
student as provided in K.S.A. 74-49,117 and amendments thereto. Commencing on the
effective date of this act, any child who was receiving benefits pursuant to this section and
who had such benefits terminated by reason of such child's marriage, shall be entitled to
once again receive benefits pursuant to this section subject to the limitations contained in
this section, except that such child shall not be entitled to recover any benefits not received
after the termination of benefits by reason of such child's marriage but before the effective
date of this act.

The provisions of paragraph (b) of subsection (2) shall apply in all cases of such members
who die after July 1, 1989.

(3) Any member who was employed for compensation by an employer other than the
member's participating employer and whose disability was incurred in the course of such
other employment shall not be eligible for any of the benefits provided in subsection (2).

(4) If a member becomes totally and permanently disabled and no benefits are payable
under subsection (1) or (2), the sum of the member's accumulated contributions shall be
paid to the member.

(5) Any member receiving benefits under this section shall submit to medical exami-
nation, not ~~oftener~~ more frequent than annually, by one or more physicians or any other
practitioners of the healing arts holding a valid license issued by Kansas state board of healing
arts, as the board of trustees may direct. If upon such medical examination, the examiner's
report to the board states that the retirant is physically able and capable of resuming em-
ployment with the same or a different participating employer ~~from whose employment such~~
~~member retired~~, the disability benefits shall terminate. A retirant who has been receiving
benefits under the provisions of this section and who returns to employment, as defined in
subsection (4) of K.S.A. 74-4952 and amendments thereto, of a participating employer shall
immediately commence accruing service credit which shall be added to that which has been
accrued by virtue of previous service.

(6) Any retirant who has been receiving benefits under the provisions of this section for
a period of five years shall be deemed finally retired and shall not be subject to further
medical examinations, except that if the board of trustees shall have reasonable grounds to
question whether the retirant remains totally and permanently disabled, a further medical
examination or examinations may be required.

(7) Refusal or neglect to submit to examination as provided in subsection (5) shall be
sufficient cause for suspending or discontinuing benefit payments under this section and if
such refusal or neglect shall continue for a period of one year, the member's rights in and
to all benefits under this system may be revoked by the board.

(8) Any retirement benefits payable under the provisions of this section shall be in lieu
of normal retirement benefits as provided in subsections (1) and (2) of K.S.A. 74-4958 and
amendments thereto.

(9) Each member shall report to such member's participating employer any event or
act of duty causing disability within 200 days after such event or act of duty. The member's
participating employer shall file in the office of the executive secretary of the board, in a
form acceptable to the board, a report of the event or act of duty causing disability within
220 days after the event or act of duty.

(10) In any case of any event occurring prior to July 1, 1979, and after June 30, 1998,
for which a report of the event was made by the participating employer to the director of
workers' compensation in accordance with K.S.A. 44-557 and amendments thereto, such
report to the director of workers' compensation shall satisfy the requirement under subsec-
tion (1) of this section to file a report of such event, in a form acceptable to the board within
220 days. No such report to the director of workers' compensation shall be deemed to satisfy
such requirement with respect to events occurring on or after July 1, 1979, and prior to
July 1, 1998.

(11) All payments due under this section to a minor shall be made to a legally appointed
conservator of such minor.

(12) The provisions of this section shall apply only to members who were appointed or
employed prior to July 1, 1989, and who did not make an election pursuant to K.S.A. 74-
4955a and amendments thereto.

(13) Any retirant who has been receiving benefits under the provisions of this section
and who returns to employment with the same or different participating employer in the
system shall be deemed no longer retired.

Sec. 39. K.S.A. 1997 Supp. 74-4960a, as amended by section 73 of 1997 Senate Bill
No. 382, is hereby amended to read as follows: 74-4960a. (1) If any active contributing
member who is appointed or employed on or after July 1, 1989, or who makes an election
pursuant to K.S.A. 74-4955a and amendments thereto to be covered by the provisions of
this act becomes disabled as defined in subsection (2), such member shall receive a monthly
benefit equal to 50% of the member's final average salary at the time such member was
disabled payable in monthly installments, accruing from the first day upon which the mem-
ber ceases to draw compensation, if a report of the disability in such form and manner as
the board shall prescribe is filed in the office of the executive secretary of the board within
220 days after the date of the commencement of such disability and if an application for
such benefit in such form and manner as the board shall prescribe is filed in the office of
the executive secretary of the board within two years of the date of the commencement of
such disability.

(2) For the purposes of this section, ``disabled'' means total inability to perform per-
manently the duties of the position of policeman or fireman.

(3) In the event a member who is disabled and entitled to such benefits as provided in
subsection (1) dies after the date of such disability, and no benefits are payable under
subsection (3) of K.S.A. 74-4958 and amendments thereto, the following benefits shall be
payable:

(i) To the member's spouse, if lawfully wedded to the member at the time of the mem-
ber's death, a lump-sum benefit equal to 50% of the member's final average salary at the
time such member was disabled.

(ii) To the member's spouse, if lawfully wedded to the member at the time of the
member's death, an annual benefit equal to 50% of the member's benefit payable in monthly
installments, to accrue from the first day of the month following the member's date of death
and ending on the last day of the month in which the spouse dies. Commencing on the
effective date of this act, any surviving spouse, who was receiving benefits pursuant to this
section and who had such benefits terminated by reason of such spouse's remarriage, shall
be entitled to once again receive benefits pursuant to this section, except that such surviving
spouse shall not be entitled to recover any benefits not received after the termination of
benefits by reason of such surviving spouse's remarriage but before the effective date of this
act. If there is no surviving spouse, or if after the death of the spouse there remain one or
more children under the age of 18 years or one or more children under the age of 23 years
who is a full-time student as provided in K.S.A. 74-49,117 and amendments thereto, the
annual spouse's benefit shall be payable, subject to the provisions of section 83 and amend-
ments thereto, in equal shares to such children and each child's share shall end on the last
day of the month in which such child attains the age of 18 years or dies, whichever occurs
earlier or in which such child attains the age of 23 years, if such child is a full-time student
as provided in K.S.A. 74-49,117 and amendments thereto. Commencing on the effective
date of this act, any child who was receiving benefits pursuant to this section and who had
such benefits terminated by reason of such child's marriage, shall be entitled to once again
receive benefits pursuant to this section subject to the limitations contained in this section,
except that such child shall not be entitled to recover any benefits not received after the
termination of benefits by reason of such child's marriage but before the effective date of
this act.

(4) Any member who was employed for compensation by an employer other than the
member's participating employer and whose disability was incurred in the course of such
other employment shall not be eligible for any of the benefits provided in subsection (1) or
(3).

(5) If a member becomes totally and permanently disabled and no benefits are payable
under subsection (1), the sum of the member's accumulated contributions shall be paid to
the member.

(6) Any member receiving benefits under this section shall submit to medical exami-
nation, not ~~oftener~~ more frequent than annually, by one or more physicians or any other
practitioners of the healing arts holding a valid license issued by Kansas state board of healing
arts, as the board of trustees may direct. If upon such medical examination, the examiner's
report to the board states that the member is physically able and capable of resuming
employment with the same or a different participating employer ~~from whose employment~~
~~such member was employed prior to such member's disability~~, the disability benefits shall
terminate. A member who has been receiving benefits under the provisions of this section
and who returns to employment, as defined in subsection (4) of K.S.A. 74-4952 and amend-
ments thereto, of a participating employer shall immediately commence accruing service
credit which shall be added to that which has been accrued by virtue of previous service.

(7) Any member who has been receiving benefits under the provisions of this section
for a period of five years shall be deemed permanent and shall not be subject to further
medical examinations, except that if the board of trustees shall have reasonable grounds to
question whether the member remains totally and permanently disabled, a further medical
examination or examinations may be required.

(8) Refusal or neglect to submit to examination as provided in subsection (6) shall be
sufficient cause for suspending or discontinuing benefit payments under this section and if
such refusal or neglect shall continue for a period of one year, the member's rights in and
to all benefits under this system may be revoked by the board.

(9) In the event that a member becomes disabled and is eligible for benefits provided
in this section, such member shall be given participating service credit for the entire period
of such disability.

(10) Any member who is receiving benefits pursuant to this section shall file annually a
statement of earnings for the previous year in such form and manner as the board shall
prescribe. Any disability benefit paid to a member entitled to such benefit pursuant to this
section shall be reduced by the board in an amount equal to a $1 reduction in such benefit
for every $2 of earnings of such member which were earned during the previous year while
such member was disabled. Such reduction shall apply only to a member's earnings which
exceed $10,000.

(11) Any benefits provided pursuant to this section and any participating service credit
given pursuant to subsection (9) shall terminate upon the earliest date such member is
eligible for retirement upon attainment of the normal retirement date as provided in K.S.A.
74-4964a and amendments thereto.

(12) Any member who has received benefits under the provisions of this section for a
period of five years or more immediately preceding retirement shall have such member's
final average salary adjusted upon retirement by the actuarial salary assumption rates in
existence during such period. Effective July 1, 1993, each member's current annual rate
shall be adjusted upon retirement by 5% for each year of disability after July 1, 1993, but
before July 1, 1998. Effective July 1, 1998, such member's current annual rate shall be
adjusted upon retirement by an amount equal to the lesser of: (1) The percentage increase
in the consumer price index for all urban consumers as published by the bureau of labor
statistics of the United States department of labor minus one percent; or (2) four percent
per annum, measured from the month the disability occurs to the month that is two months
prior to the month of retirement, for each year of disability after July 1, 1998.

(13) All payments due under this section to a minor shall be made to a legally appointed
conservator of such minor.

(14) The provisions of this section shall be effective on and after July 1, 1989 and shall
apply only to members who were appointed or employed prior to July 1, 1989, and who
made an election pursuant to K.S.A. 74-4955a and amendments thereto; and persons ap-
pointed or employed on or after July 1, 1989.

(15) Any retirant who has been receiving benefits under the provisions of this section
and who returns to employment with the same or different participating employer in the
system shall be deemed no longer retired.

Sec. 40. K.S.A. 1997 Supp. 74-4963, as amended by section 75 of 1997 Senate Bill No.
382, is hereby amended to read as follows: 74-4963. (1) Upon termination of employment
prior to the completion of 20 years of credited service, after 30 days after such termination
a member may withdraw such member's accumulated contributions or elect to leave such
accumulated contributions on deposit with the system. If the member elects to leave the
accumulated contributions on deposit with the system and if the member returns to em-
ployment with the same or another participating employer within five years, such member
shall receive credit for such member's service prior to such termination. If the member
does not elect to leave the accumulated contributions on deposit or if the member does not
return to covered employment within five years, such member shall no longer be a member
of the system and the sum of such member's accumulated contributions then on deposit
with this system shall be paid to such member after making application in a form prescribed
by the board and after the system has a reasonable time to process the application for
withdrawal. Upon proper notification by the system, member contributions not on deposit
with the system shall be paid to the member by the participating employer.

(2) If, after termination and withdrawal of accumulated contributions, a former member
returns to covered employment, except as otherwise provided in subsection (1), the former
member shall become a member of the system as provided in subsection (2) of K.S.A. 74-
4955 and amendments thereto. Any former member returning to covered employment may,
at the former member's option, pay to the system within 31 days of the former member's
return to covered employment, the total of the former member's withdrawn accumulated
contributions plus interest at a rate specified by the board, in which case the member shall
receive full credit for the member's service prior to the member's termination. Subject to
the provisions of section 83 and amendments thereto, members who do not elect to repay
within 31 days of return to covered employment may elect to purchase previously forfeited
service any time prior to retirement. Such purchase shall be made by a lump-sum payment
equal to 1.75% of the member's current annual salary for each quarter of previously forfeited
participating service which the member elects to repurchase. Upon receipt of such payment
by the system the member shall receive full credit for the number of previously forfeited
quarters of participating service which the member has elected to repurchase. Any member
who repurchases all of the member's previously forfeited participating service credit shall
also receive all of the member's previously forfeited prior service credit.

(3) Upon termination and withdrawal of accumulated contributions, any member whose
employment was, up to the member's employer's entry date, covered by a pension system
established under the provisions of K.S.A. 13-14a01 through 13-14a14, and amendments
thereto, or K.S.A. 14-10a01 through 14-10a15, and amendments thereto, shall be entitled
to receive from the member's employer the sum of the member's accumulated contributions
to the previous pension system.

(4) If a member has completed 20 years of credited service at date of termination, the
member shall be granted automatically a vested retirement benefit in the system, but any
time prior to the commencement of retirement benefit payments and before attaining age
55 the member may withdraw the member's accumulated contributions, whereupon the
member's membership in this system ceases and no other amounts shall be payable for the
member's prior and participating service credit. Eligibility of such member, who has not
withdrawn the member's accumulated contributions, for retirement benefits and procedures
for making application for retirement benefits shall be in accordance with K.S.A. 74-4957
and amendments thereto, except that in lieu of the three-month notice of intention to retire
being made to the employer, such member shall make application for retirement in a form
prescribed by the board and retirement benefits shall accrue from the first day of the month
following receipt of such application. The amount of the retirement benefit shall be deter-
mined as provided in K.S.A. 74-4958 and amendments thereto.

(5) If a member, who has a vested retirement benefit, again becomes an employee of
a participating employer, the amount of the member's vested retirement benefit shall remain
in effect, and any retirement benefit such member subsequently accrues shall be calculated
separately based on credited service after again becoming an employee and shall be added
to that which had been vested by virtue of previous service. Eligibility of such member for
retirement benefits and procedures for making application for retirement benefits shall be
in accordance with K.S.A. 74-4957 and amendments thereto.

(6) Any member of this system who was previously a member of the Kansas public
employees retirement system or the retirement system for judges and who forfeited service
credit under either of those systems by reason of termination of employment and withdrawal
of their contributions to that system, may elect, subject to the provisions of section 83 and
amendments thereto, to purchase service credit for the previously forfeited service credit
by means of a single lump-sum payment and such service shall be recredited to that system.
The amount of the lump-sum payment shall be determined by the actuary using the mem-
ber's then current annual rate of compensation and the actuarial assumptions and tables
then currently in use by that retirement system.

(7) The provisions of this section shall apply only to members who were appointed or
employed prior to July 1, 1989, and who did not make an election pursuant to K.S.A. 74-
4955a and amendments thereto.

Sec. 41. K.S.A. 1997 Supp. 74-4963a, as amended by section 76 of 1997 Senate Bill
No. 382, is hereby amended to read as follows: 74-4963a. (1) Upon termination of employ-
ment prior to the completion of 15 years of credited service, after 30 days after such ter-
mination a member may withdraw such member's accumulated contributions or elect to
leave such accumulated contributions on deposit with the system. If the member elects to
leave the accumulated contributions on deposit with the system and if the member returns
to employment with the same or another participating employer within five years, such
member shall receive credit for such member's service prior to such termination. If the
member does not elect to leave the accumulated contributions on deposit or if the member
does not return to covered employment within five years, such member shall no longer be
a member of the system and the sum of such member's accumulated contributions then on
deposit with this system shall be paid to such member after making application in a form
prescribed by the board and after the system has a reasonable time to process the application
for withdrawal. Upon proper notification by the system, member contributions not on de-
posit with the system shall be paid to the member by the participating employer.

(2) If, after termination and withdrawal of accumulated contributions, a former member
returns to covered employment, except as otherwise provided in subsection (1), the former
member shall become a member of the system as provided in subsection (2) of K.S.A. 74-
4955 and amendments thereto. Any former member returning to covered employment may,
at the former member's option, pay to the system within 31 days of the former member's
return to covered employment, the total of the former member's withdrawn accumulated
contributions plus interest at a rate specified by the board, in which case the member shall
receive full credit for the member's service prior to the member's termination. Subject to
the provisions of section 83 and amendments thereto, members who do not elect to repay
within 31 days of return to covered employment may elect to purchase previously forfeited
service any time prior to retirement. Such purchase shall be made by a lump-sum payment
equal to 1.75% of the member's current annual salary for each quarter of previously forfeited
participating service which the member elects to repurchase. Upon receipt of such payment
by the system the member shall receive full credit for the number of previously forfeited
quarters of participating service which the member has elected to repurchase. Any member
who repurchases all of the member's previously forfeited participating service credit shall
also receive all of the member's previously forfeited prior service credit.

(3) Upon termination and withdrawal of accumulated contributions, any member whose
employment was, up to the member's employer's entry date, covered by a pension system
established under the provisions of K.S.A. 13-14a01 through 13-14a14, and amendments
thereto, or K.S.A. 14-10a01 through 14-10a15, and amendments thereto, shall be entitled
to receive from the member's employer the sum of the member's accumulated contributions
to the previous pension system.

(4) If a member has completed 15 years of credited service at date of termination, the
member shall be granted automatically a vested retirement benefit in the system, but any
time prior to the commencement of retirement benefit payments and before attaining age
55 the member may withdraw the member's accumulated contributions, whereupon the
member's membership in this system ceases and no other amounts shall be payable for the
member's prior and participating service credit. Eligibility of such member, who has not
withdrawn the member's accumulated contributions, for retirement benefits and procedures
for making application for retirement benefits shall be in accordance with K.S.A. 74-4957
and amendments thereto, except that in lieu of the three-month notice of intention to retire
being made to the employer, such member shall make application for retirement in a form
prescribed by the board and retirement benefits shall accrue from the first day of the month
following receipt of such application. The amount of the retirement benefit shall be deter-
mined as provided in K.S.A. 74-4958 and amendments thereto.

(5) If a member, who has a vested retirement benefit, again becomes an employee of
a participating employer, the amount of the member's vested retirement benefit shall remain
in effect, and any retirement benefit such member subsequently accrues shall be calculated
separately based on credited service after again becoming an employee and shall be added
to that which had been vested by virtue of previous service. Eligibility of such member for
retirement benefits and procedures for making application for retirement benefits shall be
in accordance with K.S.A. 74-4957 and amendments thereto.

(6) Any member of this system who was previously a member of the Kansas public
employees retirement system or the retirement system for judges and who forfeited service
credit under either of those systems by reason of termination of employment and withdrawal
of their contributions to that system, may elect, subject to the provisions of section 83 and
amendments thereto, to purchase service credit for the previously forfeited service credit
by means of a single lump-sum payment and such service shall be recredited to that system.
The amount of the lump-sum payment shall be determined by the actuary using the mem-
ber's then current annual rate of compensation and the actuarial assumptions and tables
then currently in use by that retirement system.

(7) The provisions of this section shall be effective on and after July 1, 1989 and shall
apply only to members who were appointed or employed prior to July 1, 1989, and who
made an election pursuant to K.S.A. 74-4955a and amendments thereto; and persons ap-
pointed or employed on or after July 1, 1989.

Sec. 42. K.S.A. 1997 Supp. 74-4966 is hereby amended to read as follows: 74-4966. (a)
In the case of any member whose employment shall be covered by social security and who
is a member of the class certified in the case of Brazelton v. Kansas public employees
retirement system, 227 K. 443, 607 P.2d 510 (1980), any benefits payable under the pro-
visions of K.S.A. 74-4958, 74-4959 and 74-4960 shall be reduced by an amount equal to 1/2
of the original social security benefits accruing from employment with the participating
employer at the time the member retired. For any member already retired on the effective
date of this act, no reduction of the original social security benefits shall be applicable to
benefits paid prior to the effective date of this act. The member must make an initial ap-
plication for social security benefits from employment with the participating employer and,
if denied such benefits, the member must pursue and exhaust all administrative remedies of
the social security administration which include, but are not limited to, reconsideration and
hearings. Until such initial application for benefits has been approved by the social security
administration, social security benefits may be estimated and may be deducted from the
amount of any benefits payable as provided in this subsection.

(b) For any member other than a member who is a member of the class certified in the
case of Brazelton v. Kansas public employees retirement system, 227 K. 443, 607 P.2d 510
(1980), no benefits shall be reduced because of social security benefits. Any benefits which
first become payable on or after January 1, 1976, by reason of employment with a partici-
pating employer participating in the Kansas police and firemen's retirement system, which
employment was also covered by social security, shall be reduced by an amount equal to
the value of the difference between contributions actually made by the member and con-
tributions which would have been made had there been no reduction for contributions to
social security. The amount of reduction shall be made by the board upon the advice of the
actuary at the time benefits become payable and shall continue until benefits are no longer
payable. Should a member, whose employment prior to January 1, 1976, with a participating
employer participating in the Kansas police and firemen's retirement system, such employ-
ment also being covered by social security, repay in a lump-sum prior to January 1, 1977,
or on date of retirement, whichever is earlier, an amount equal to the difference between
contributions actually made by the member and contributions which would have been made
had there been no reduction for contributions to social security, there shall be no reduction
as heretofore provided. If the payment is made after January 1, 1977, but prior to retirement,
the member will pay the actual amount plus interest which shall accrue from January 1,
1976, at a rate specified by the board of trustees.

Sec. 43. K.S.A. 1997 Supp. 74-4988 is hereby amended to read as follows: 74-4988. (1)
(a) Each person who is a member of a retirement system and who becomes a member of
another retirement system shall receive credit under each such retirement system for cred-
ited service under the other retirement system for the purpose of satisfying any requirement
for such person to complete certain periods of service to become eligible to receive a re-
tirement benefit or disability benefit or for such person's beneficiaries to receive a death
benefit. The retirement benefit which a person becomes eligible to receive under a retire-
ment system shall be based only on credited service under such retirement system, except
that the determination of final average salary under such retirement system shall include
the compensation received as a member of each other retirement system if such compen-
sation is higher. Except as provided in subsection (1)(b), such retirement benefit shall be-
come payable upon the member submitting an application to retire under each system,
except that a member who is not eligible to retire under the retirement system to which
such member is not currently making contributions because such member does not meet
the age requirements of the earliest retirement date of such system may retire, upon meeting
the requirements for retirement, under the provisions of the retirement system which the
member had been most recently making contributions. No further rights and benefits will
accrue under the retirement system to which the member is not currently making contri-
butions after the date the member retires from the system from which the member had
been most recently making contributions and the member will be retired and benefits shall
commence on the date that the member would first have attained retirement age from the
system to which the member is not currently making contributions.

(b) The requirement that a member shall submit an application to retire under each
system before becoming eligible to receive any retirement system benefits shall not apply to
any member who was active and contributing to one retirement system and who was inactive
in another retirement system on July 1, 1995.

(2) Any member who is not otherwise eligible for service credit as provided for in
subsection (1)(a) of K.S.A. 74-4913 or subsection (1)(a) of K.S.A. 74-4936 and amendments
thereto, may be granted credit for the service upon the attainment of 38 quarters of partic-
ipating service in any retirement system as defined in subsection (3)(b) or upon retirement.

(3) As used in this section:

(a) ``Member'' means a person who has attained membership in a retirement system,
who has not retired under such retirement system and who has not withdrawn such person's
accumulated contributions for such retirement system; and

(b) ``retirement system'' means the Kansas public employees retirement system, the
Kansas police and firemen's retirement system and the retirement system for judges.

Sec. 44. K.S.A. 1997 Supp. 74-4990 is hereby amended to read as follows: 74-4990. (1)
An arrearage obligation shall arise when it is ascertained that required contributions have
not been made to the Kansas public employees retirement system at the required time.
Such arrearage obligation shall be met by the employer by preparing a report on the ap-
propriate form to correct all previous ~~quarterly~~ reports affected by the arrearage obligation.
Such report shall be submitted by the employer with the first ~~quarterly~~ report after such an
arrearage obligation is discovered or as the board of trustees of the system may otherwise
prescribe. The proper remittance to cover employer and employee contributions in arrearage
shall accompany such report or as the board of trustees of the system may otherwise pre-
scribe for all arrearages other than for the year of service as provided in K.S.A. 74-4911
and amendments thereto. In addition, the employer will pay to the system, interest at the
current actuarial interest rate assumption adopted by the board. If the employee retires
within 24 months of the employer first reporting this arrearage, the employer will pay to
the system a lump-sum amount equal to the difference of the actuarial present value of the
retirement benefit and the accumulated value of any contributions represented by the ar-
rearage. No employee shall pay all or any part of the arrearage. The amounts due for an
arrearage obligation shall be based upon the compensation paid to the member and at the
rates in effect at the time the contributions were originally due to be paid to the system.
The employer shall not be required to pay the employee contributions or interest on arrear-
ages of six month or less.

(2) An arrearage obligation shall arise when it is ascertained that the employee and
employer should have made contributions to the Kansas public employees retirement system
for all or part of the year of service as provided in K.S.A. 74-4911 and amendments thereto.
Such arrearage obligation shall be met by the employer by preparing a report on the ap-
propriate form to correct all previous reports affected by the arrearage obligation. Such
report shall be submitted by the employer with the first report after such an arrearage
obligation is discovered or as the board of trustees of the system may otherwise prescribe.
The proper remittance to cover employer contributions in arrearage shall accompany such
report or as the board of trustees of the system may otherwise prescribe. The amounts due
for an arrearage obligation shall be based upon compensation paid to the member and at
the rates in effect at the time contributions were originally due to be paid to the system.

~~(2)~~(3) In the event the proper remittance to cover employee contributions in arrearage
does not accompany such report, service credits for that period of employment involving
the arrearage obligation may be purchased by the member as participating service at any
time prior to retirement by making application therefor and paying to the system a single
lump-sum amount determined by the system's actuary using (a) the member's then current
annual rate of compensation, or if not actively employed, the member's annual rate of
compensation when last participating and (b) the actuarial assumptions and tables currently
in use by the system.

~~(3)~~(4) Except as otherwise provided in this section, any member may purchase partic-
ipating service credits for that period of employment involving the arrearage obligation as
described in this section, if first commenced prior to January 1, 1996, by electing to effect
such purchase by means of having employee contributions as provided in K.S.A. 74-4919
and amendments thereto deducted from such member's compensation at a percentage rate
equal to two times or three times the employee's rate of contribution as provided in K.S.A.
74-4919 and amendments thereto for such periods of service, in lieu of a lump-sum amount
as provided in this section. Such deductions shall commence at the beginning of the quarter
following such election and shall remain in effect until all quarters of such service have been
purchased. Any person may make any such purchase as described in this section, if first
commenced in calendar year 1996 or thereafter, at an additional rate of contribution, in
addition to the employee's rate of contribution as provided in K.S.A. 74-4919 and amend-
ments thereto, based upon the member's attained age at the time of purchase and using
actuarial assumptions and tables in use by the retirement system at such time of purchase,
for such periods of service, in lieu of a lump-sum amount as provided in this section. Such
additional rate of contribution shall commence at the beginning of the quarter following
such election and shall remain in effect until all quarters of such service have been pur-
chased.

~~(4)~~(5) Notwithstanding the provisions of this section, no employee contributions shall
be due and owing for stipulated compensation amounts paid to any employee or former
employee of a city of the first class whose dispute with such city was settled by stipulation
of settlement either in Case No. 90-2328-0 in the United States District Court for the
District of Kansas or in Case No. 91-1182 in the Supreme Court of the United States. Any
such employee or former employee may elect to remit such employee contributions to the
system. No employee or former employee whose contributions are deemed not to be due
or owing or who did not elect to remit such employee contributions to the system as provided
in this section according to this provision shall have any claim against the Kansas public
employees retirement system for any retirement, disability, death or survivors benefit or any
return of accumulated contributions based on such contributions or on the compensation
amounts that would have been reflected by such contributions.

Sec. 45. K.S.A. 1997 Supp. 74-4992, as amended by section 87 of 1997 Senate Bill No.
382, is hereby amended to read as follows: 74-4992. (a) Any such member of the legislature
or former member of the legislature as described in K.S.A. 74-4991 and amendments thereto
shall become a member on entry date or upon filing with the board an irrevocable election
to become or not to become a member of the system. In the event that any such member
of the legislature or former member of the legislature fails to file the election to become a
member of the retirement system, it shall be presumed that such member of the legislature
or former member of the legislature has elected not to become a member. The election to
participate shall become effective immediately upon making such election, if such election
is made within 14 days of taking the oath of office or, otherwise, on the first day of the first
payroll period of the first quarter following receipt of the election in the office of the
retirement system.

(b) Any member of the legislature who had attained membership in the Kansas public
employees retirement system prior to taking the oath of office as a member of the legislature
may elect not to participate in the Kansas public employees retirement system for the
purpose of service as a member of the legislature. This election, which is irrevocable, must
be filed within the offices of the system. Any member of the legislature who is a member
of the retirement system on the effective date of this act and was a member of the retirement
system at the time of taking the oath of office may elect not to participate in the retirement
system for service as a member of the legislature if such irrevocable election is filed within
the offices of the system.

(c) Subject to the provisions of section 83, and amendments thereto, any member of
the legislature who elected not to participate in the retirement system, and who is not a
contributing member with any other participating employer, may purchase such participat-
ing service by making a single lump-sum payment in an amount determined by the actuary
using the then current rate of compensation and the actuarial assumptions and tables cur-
rently in use by the system.

(d) Subject to the provisions of section 83, and amendments thereto, except as otherwise
provided in this section, any member of the retirement system may purchase participating
service credit for employment service as described in this section, if first commenced prior
to January 1, 1996, by electing to effect such purchase by means of having employee con-
tributions as provided in K.S.A. 74-4919 and amendments thereto deducted from such
member's compensation at a percentage rate equal to two times or three times the em-
ployee's rate of contribution as provided in K.S.A. 74-4919 and amendments thereto for
such periods of service in lieu of a lump-sum amount as provided in this section. Such
deductions shall commence at the beginning of the quarter following such election and shall
remain in effect until all quarters of such service have been purchased. Any person may
make any such purchase as described in this section, if first commenced in calendar year
1996 or thereafter, at an additional rate of contribution, in addition to the employee's rate
of contribution as provided in K.S.A. 74-4919 and amendments thereto, based upon the
member's attained age at the time of purchase and using actuarial assumptions and tables
in use by the retirement system at such time of purchase, for such periods of service, in
lieu of a lump-sum amount as provided in this section. Such additional rate of contribution
shall commence at the beginning of the quarter following such election and shall remain in
effect until all quarters of such service have been purchased.

New Sec. 46. The retirement system for judges is a division of the Kansas public em-
ployees retirement system created by K.S.A. 74-4903 and amendments thereto and is subject
to the provisions of K.S.A. 74-4901 et seq. and amendments thereto.

New Sec. 47. (1) Any member of the retirement system for judges may purchase par-
ticipating credit for periods of active service in the armed forces of the United States or in
the commissioned corps of the United States public health service and for periods of service
required to fulfill the requirements of section 651 of title 10, United States code, which
does not exceed six years. Such judge shall be entitled to purchase one quarter of partici-
pating service credit for each year of service required to fulfill the requirements of section
651 of title 10, United States code. Such purchase shall be effected by the judge submitting
proof of such service acceptable to the board and electing in writing to have employee
contributions as provided in K.S.A. 20-2603 and amendments thereto deducted from such
judge's compensation at an additional rate of contribution, in addition to the employee's
rate of contribution as provided in K.S.A. 20-2603 and amendments thereto, based upon
the judge's attained age at the time of purchase and using actuarial assumptions and tables
in use by the retirement system at such time of purchase for such periods of service. Such
additional rate of contribution shall commence at the beginning of the quarter following
such election and shall remain in effect until all of the full quarters of such service have
been purchased.

(2) Any member of the retirement system who has not retired may purchase partici-
pating service credit for military service as described in this section by electing to effect
such purchase by means of a single lump-sum payment in lieu of employee contributions
as provided in this section. The lump-sum payment shall be an amount determined by the
actuary using the judge's then current annual rate of compensation, the actuarial assump-
tions and tables currently in use by the retirement system and the judge's attained age. No
participating employer shall pay all or any part of the cost of any additional participating
service credit to be purchased by means of a lump-sum payment by a judge under this
section.

New Sec. 48. The retirement benefit, pension or annuity payments accruing after June
30, 1998, to each retirant of the state school retirement system who retired prior to January
1, 1971, and who had at least 25 years or more of service credit, shall be increased by an
amount equal to $100.

New Sec. 49. The provisions of K.S.A. 74-4999 et seq. and amendments thereto shall
apply to any member of the Kansas public employees retirement system who was a court
reporter for a magistrate court prior to July 1, 1975, and who is a full-time court reporter
on the effective date of this act.

New Sec. 50. (a) The retirement benefit, pension or annuity payments accruing after
June 30, 1998, to each retirant and each local school annuitant shall be increased by an
amount equal to 3.0% of the retirement benefit, pension or annuity payment in effect on
July 1, 1998, from the retirant's retirement system and shall be paid by such retirement
system to the retirant and the local school annuitant during such period.

(b) As used in this section:

(1) ``Retirant'' means (A) any person who is a member of a retirement system and who
retired prior to July 1, 1993, (B) any person who is a special member of a retirement system
and who retired prior to July 1, 1993, and (C) any person who is a joint annuitant or
beneficiary of any member described in clause (A) or any special member described in
clause (B).

(2) ``Retirement system'' means the Kansas public employees retirement system, the
Kansas police and firemen's retirement system, the state school retirement system and the
retirement system for judges.

(3) ``Local school annuitant'' means (A) any person who is an annuitant with 10 or more
years of service, who is receiving an annuity, whose annuity is not included, in whole or in
part, in payments made to such school district under K.S.A. 72-5512b and amendments
thereto, and who is not a member of a group I or of group II as defined in K.S.A. 72-5518
and amendments thereto, and (B) any person who is receiving an annuity and who retired
prior to September 1, 1981.

New Sec. 51. (1) Notwithstanding the provisions of subsection (9) of K.S.A. 74-4902
and amendments thereto, any payment for accumulated sick leave, vacation or annual leave,
severance pay or any other payments to the member which, when upon retirement, increases
the member's final average salary by more than 15%, shall require the participating employer
to pay the system a lump-sum amount equal to the system's actuarial liability for benefits
attributable to and payable on account of such excess over the 15%.

(2) As used in this section, ``system'' means the Kansas public employees retirement
system, the Kansas police and firemen's retirement system and the retirement system for
judges.

New Sec. 52. (1) Any payment made to a named beneficiary as provided in this section,
shall be a full discharge and release to the system from any further claims. Any payment
made to a beneficiary as provided in clauses (A), (B), (C), (D), (E) or (F) of subsection (7)
of K.S.A. 74-4902 or in clauses (1), (2), (3), (4), (5) or (6) of subsection (k) of K.S.A. 20-
2601, and amendments thereto, as determined by the board, shall be a full discharge and
release to the system from any further claims. Whenever any payment is payable to more
than one beneficiary such payment shall be made to such beneficiaries jointly.

(2) Any benefits payable to a beneficiary or beneficiaries who are incompetent shall be
made in the name of the beneficiary or beneficiaries and delivered to the lawfully appointed
conservator of such beneficiaries who was nominated by will or as otherwise provided by
law, except that in those cases where the benefit involves an amount not to exceed $500,
the board is hereby authorized in its discretion without the appointment of a conservator
or in the giving of a bond to pay such amount as is due to the incompetent person or persons
themselves.

(3) Any lump-sum benefits payable to a beneficiary or beneficiaries who are minor
children and which amount totals $10,000 or more shall be made in the name of the ben-
eficiary or beneficiaries and delivered to the lawfully appointed conservator of such bene-
ficiaries who was nominated by will or as otherwise provided by law except that in those
cases where the benefit involves an amount not to exceed $500, the board is hereby au-
thorized in its discretion without the appointment of a conservator or the giving of a bond
to pay such amount as is due to the minor or minors themselves. If no conservator is lawfully
appointed, the system will credit interest at 4% on all benefits due and payable and shall
pay all benefits plus interest to the beneficiary or beneficiaries who are minor children when
they attain age 18 years. Any benefits payable to a beneficiary or beneficiaries who are minor
children and which amount which totals more than $500 but less than $10,000, may be
made in the name of the beneficiary or beneficiaries and paid under the uniform transfers
to minors act as provided in K.S.A. 38-1701 et seq. and amendments thereto.

(4) Any monthly benefits payable to a beneficiary or beneficiaries who are minor chil-
dren shall be made in the name of the beneficiary or beneficiaries and delivered to the
lawfully appointed conservator of such beneficiaries who was nominated by will or as oth-
erwise provided by law. If no conservator is lawfully appointed, the system will credit interest
at 4% on all benefits due and payable and shall pay all benefits plus interest to the beneficiary
or beneficiaries who are minor children when they attain age 18 years.

(5) As used in this section, ``system'' means the Kansas public employees retirement
system, the Kansas police and firemen's retirement system and the retirement system for
judges.

New Sec. 53. Any employee of a participating employer who is a member of the Kansas
public employees retirement system, who was previously employed in Kansas in nonfederal
governmental employment with an employer who has not affiliated with the system under
K.S.A. 74-4910 and amendments thereto, and which service otherwise meets the require-
ments of an employee as prescribed in subsection (14) of K.S.A. 74-4902 or subsection (4)
of K.S.A. 74-4932 and amendments thereto, may elect to purchase service credit for such
in-state nonfederal governmental employment. At the election of the member, the benefit
for each such year of employment shall be either 1% or 1.75% of the final average salary
of any such member. For any member who elects to purchase service credit as provided in
this section at the 1% rate, such member may elect to purchase such service credit at an
additional amount of .75% of final average salary of such member in a lump-sum amount
as otherwise provided in this subsection. Such member may purchase such service credit
by making application therefor prior to the date of retirement at an additional rate of con-
tribution in addition to the employee's rate of contribution as provided in K.S.A. 74-4919
and amendments thereto, based upon the member's attained age at the time of purchase
and using actuarial assumptions and tables in use by the retirement system at the time of
such purchase. Such additional rate of contribution shall commence at the beginning of the
quarter following such election and shall remain in effect until all quarters of such service
have been purchased. Any such member may purchase such service credit as described in
this section by electing to effect such purchase by means of a single lump-sum payment in
lieu of employee contributions as provided in this section in an amount equal to the then
present value of the benefits being purchased as determined by the actuary using the mem-
ber's attained age, annual compensation at the time of purchase and the actuarial assump-
tions and tables then in use by this system. The lump-sum payment shall be made imme-
diately upon being notified of the amount due. No purchase of service or any part thereof
will be nullified by the subsequent affiliation of an employer with the system.

Sec. 54. K.S.A. 20-2601a, 20-2606, as amended by section 17 of 1997 Senate Bill No.
382, 20-2609, 20-2610, 20-2620, as amended by section 20 of 1997 Senate Bill No. 382, 72-
5501, as amended by section 22 of 1997 Senate Bill No. 382, 74-4919i, as amended by
section 45 of 1997 Senate Bill No. 382, 74-4924 and 74-4955a and K.S.A. 1997 Supp. 20-
2601, as amended by section 15 of 1997 Senate Bill No. 382, 46-2201, 74-4902, as amended
by section 26 of 1997 Senate Bill No. 382, 74-4904, 74-4905, 74-4907, 74-4908, 74-4910,
74-4911, as amended by section 28 of 1997 Senate Bill No. 382, 74-4913, as amended by
section 33 of 1997 Senate Bill No. 382, 74-4914, 74-4914e, 74-4917, 74-4919a, as amended
by section 38 of 1997 Senate Bill No. 382, 74-4919h, as amended by section 44 of 1997
Senate Bill No. 382, 74-4919n, as amended by section 49 of 1997 Senate Bill No. 382, 74-
4919p, 74-4919q, 74-4920, 74-4921, 74-4927, as amended by section 53 of 1997 Senate Bill
No. 382, 74-4936a, as amended by section 63 of 1997 Senate Bill No. 382, 74-4937, 74-
4939, 74-4952, as amended by section 65 of 1997 Senate Bill No. 382, 74-4956, as amended
by section 68 of 1997 Senate Bill No. 382, 74-4957, 74-4957a, 74-4960, as amended by
section 72 of 1997 Senate Bill No. 382, 74-4960a, as amended by section 73 of 1997 Senate
Bill No. 382, 74-4963, as amended by section 75 of 1997 Senate Bill No. 382, 74-4963a, as
amended by section 76 of 1997 Senate Bill No. 382, 74-4966, 74-4988, 74-4990 and 74-
4992 as amended by section 87 of 1997 Senate Bill No. 382, are hereby repealed.'';

And by renumbering sections accordingly;

On page 1, in the title, in line 15, by striking all after the first semicolon; by striking all
in lines 16 through 29 and inserting ``amending K.S.A. 20-2601a, 20-2606, as amended by
section 17 of 1997 Senate Bill No. 382, 20-2609, 20-2610, 20-2620, as amended by section
20 of 1997 Senate Bill No. 382, 72-5501, as amended by section 22 of 1997 Senate Bill No.
382, 74-4919i, as amended by section 45 of 1997 Senate Bill No. 382, 74-4924 and 74-4955a
and K.S.A. 1997 Supp. 20-2601, as amended by section 15 of 1997 Senate Bill No. 382, 46-
2201, 74-4902, as amended by section 26 of 1997 Senate Bill No. 382, 74-4904, 74-4905,
74-4907, 74-4908, 74-4910, 74-4911, as amended by section 28 of 1997 Senate Bill No. 382,
74-4913, as amended by section 33 of 1997 Senate Bill No. 382, 74-4914, 74-4914e, 74-
4917, 74-4919a, as amended by section 38 of 1997 Senate Bill No. 382, 74-4919h, as
amended by section 44 of 1997 Senate Bill No. 382, 74-4919n, as amended by section 49
of 1997 Senate Bill No. 382, 74-4919p, 74-4919q, 74-4920, 74-4921, 74-4927, as amended
by section 53 of 1997 Senate Bill No. 382, 74-4936a, as amended by section 63 of 1997
Senate Bill No. 382, 74-4937, 74-4939, 74-4952, as amended by section 65 of 1997 Senate
Bill No. 382, 74-4956, as amended by section 68 of 1997 Senate Bill No. 382, 74-4957,
74-4957a, 74-4960, as amended by section 72 of 1997 Senate Bill No. 382, 74-4960a, as
amended by section 73 of 1997 Senate Bill No. 382, 74-4963, as amended by section 75 of
1997 Senate Bill No. 382, 74-4963a, as amended by section 76 of 1997 Senate Bill No. 382,
74-4966, 74-4988, 74-4990 and 74-4992 as amended by section 87 of 1997 Senate Bill No.
382, and repealing the existing sections.'';

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

Mike Farmer

Henry M. Helgerson, Jr.

Conferees on part of House

Dave Kerr

Stephen R. Morris

Conferees on part of Senate

On motion of Rep. Farmer to adopt the conference committee report on SB 11, Rep.
Edmonds 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 75; Nays 47; Present but not voting: 0; Absent or not
voting: 2.

Yeas: Alldritt, Ballard, Beggs, Burroughs, Carmody, Cook, Correll, Crow, Dahl, Dean,
Dillon, Edmonds, Empson, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Garner,
Gilbert, Glasscock, Grant, Haley, Henderson, Henry, Holmes, Howell, Huff, Humerick-
house, Hutchins, Johnson, Johnston, Kirk, Klein, Krehbiel, Kuether, Larkin, M. Long, Mays,
McClure, McKechnie, McKinney, Minor, Nichols, Packer, Pauls, E. Peterson, Phelps, Pot-
torff, Powers, Reardon, Reinhardt, Ruff, Sawyer, Shallenburger, Sharp, Showalter, Shriver,
Shultz, Sloan, Spangler, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar,
Vickrey, Weiland, Wells, Welshimer, Wempe, Wilk.

Nays: Adkins, Allen, Aurand, Ballou, Benlon, Boston, Campbell, Cox, Dreher, Faber,
Farmer, Freeborn, Geringer, Gilmore, Gregory, Hayzlett, Helgerson, Horst, Jennison, Kejr,
Phil Kline, Phill Kline, Landwehr, Lane, P. Long, Mayans, McCreary, Mollenkamp, Mor-
rison, Myers, Neufeld, O'Connor, O'Neal, Osborne, Palmer, J. Peterson, Powell, Presta,
Ray, Samuelson, Schwartz, Shore, Stone, Vining, Wagle, Weber, Wilson.

Present but not voting: None.

Absent or not voting: Compton, Mason.

The substitute motion prevailed.

Speaker pro tem Wagle thereupon appointed Reps. Farmer, Edmonds and Helgerson as
fourth conferees on the part of the House.

MESSAGES FROM THE SENATE

The Senate adopts conference committee report on H. Sub. for Sub. SB 424.

The Senate adopts conference committee report on SB 535.

The Senate adopts conference committee report on Sub. HB 2972.

The Senate accedes to the request of the House for a conference on Sub. SB 675 and
has appointed Senators Ranson, Jordan and Barone as third conferees on the part of the
Senate.

The Senate accedes to the request of the House for a conference on HB 2510 and has
appointed Senators Oleen, Vidricksen and Jones as conferees on the part of the Senate.

Also, the Senate adopts conference committee report on H. Sub. for SB 212.

The House stood at ease until the sound of the gavel.

______ Speaker pro tem Wagle called the House to order.

MESSAGE FROM THE SENATE

The Senate accedes to the request of the House for a conference on SB 11 and has
appointed Senators Kerr, Morris and Petty as fourth conferees on the part of the Senate.

REPORT ON ENGROSSED BILLS

HB 2678, 2759 reported correctly re-engrossed April 10, 1998.

REPORT ON ENROLLED BILLS

Sub. HB 2662; HB 2799 reported correctly enrolled, properly signed and presented to
the governor on April 10, 1998.

READING AND CORRECTION OF THE JOURNAL

In the Journal, on page 1802, on the roll call vote on HB 3022, Rep. Phill Kline should
be deleted from the nays, and Rep. Phil Kline should be inserted.

On motion of Rep. Jennison, the House adjourned until 10:00 a.m., Wednesday, April
29, 1998.

CHARLENE SWANSON, Journal Clerk.

JANET E. JONES, Cheif Clerk.