Topeka, KS, Wednesday, February 3, 1999, 11:00 a.m.
The House met pursuant to adjournment with Speaker pro tem Mays in the chair.
The roll was called with 123 members present.
Reps. Hermes and Johnston were excused on excused absence by the Speaker.
Prayer by Chaplain Svoboda:
Holy God,
You have given humans the power
to speak and to learn,
to love and to heal,
to reason and to understand.
Help us always to be mindful
of the gifts that we have
so that we may use them
to create a better world.
In Your name we pray.
Amen.
The Pledge of Allegiance was led by Rep. Showalter.
INTRODUCTION OF BILLS AND CONCURRENT RESOLUTIONS
The following bills were introduced and read by title:
HB 2231, An act concerning elections; relating to the registration of voters; amending
K.S.A. 1998 Supp. 25-2309 and 25-2354 and repealing the existing sections, by Committee
on Governmental Organization and Elections.
HB 2232, An act concerning telecommunications; requiring the establishment of certain
base rates for basic telephone service, by Committee on Utilities.
HB 2233, An act relating to driver licenses; concerning parent or guardian taught driver
education courses, by Committee on Transportation.
HB 2234, An act relating to railroads; concerning short-line railroads; defining; granting
certain powers to the state corporation commission, by Committee on Transportation.
HB 2235, An act concerning physical therapy; relating to licensure; amending K.S.A. 40-
2,111, 60-513d, 60-2609, 65-2901, 65-2904, 65-2905, 65-2907, 65-2908, 65-2909, 65-2910,
65-2912, 65-2914 and 65-2918 and K.S.A. 1998 Supp. 7-121b, 17-2707, 21-3721, 40-3401,
40-3403, 65-1902, 65-2891, 65-2906, 65-2913 and 65-5912 and repealing the existing
sections, by Committee on Health and Human Services.
HB 2236, An act concerning school records of children in the custody of the secretary
of social and rehabilitation services; transfer of pupil records; amending K.S.A. 72-5386
andrepealing the existing section, by Committee on Health and Human Services (By
Request of SRS Transition Oversight Committee).
HB 2237, An act concerning redesignation of the state long-term care ombudsman as
the state long-term care advocate; amending K.S.A. 39-1406 and K.S.A. 1998 Supp. 75-
5908, 75-5914, 75-7301, 75-7302, 75-7303, 75-7304, 75-7305, 75-7306, 75-7307, 75-7308,
75-7309, 75-7310, 75-7311, 75-7312, 75-7313 and 75-7314 and repealing the existing
sections, by Committee on Health and Human Services (By Request of SRS Transition
Oversight Committee).
HB 2238, An act relating to the practice of pharmacy; refusal to fill a prescription, by
Committee on Federal and State Affairs.
REFERENCE OF BILLS AND CONCURRENT RESOLUTIONS
The following bills and resolutions were referred to committees as indicated:
Agriculture: HCR 5017.
Appropriations: HB 2230.
Business, Commerce and Labor: HB 2219.
Education: HB 2211, 2217, 2220; HCR 5018.
Governmental Organization and Elections: HB 2212, 2216, 2227, 2228, 2229.
Health and Human Services: HB 2213, 2214, 2215.
Judiciary: HB 2221, 2222, 2223, 2224.
Taxation: HB 2218, 2226; HCR 5019.
Transportation: HB 2225.
CHANGE OF REFERENCE
Speaker pro tem Mays announced the withdrawal of HB 2174 from Committee on
Business, Commerce and Labor and referral to Committee on Judiciary.
COMMUNICATIONS FROM STATE OFFICERS
From David A. Grisafe, Kansas Geological Survey, Educational Series 13, Primer of
Industrial Minerals for Kansas, 1999.
The complete report is kept on file and open for inspection in the office of the Chief
Clerk.
CONSENT CALENDAR
No objection was made to HB 2088 appearing on the Consent Calendar for the second
day.
FINAL ACTION ON BILLS AND CONCURRENT RESOLUTIONS HB 2053, An act repealing K.S.A. 58-1312 through 58-1315, relating to lighting standards
for public buildings, was considered on final action. On roll call, the vote was: Yeas 123;
Nays 0; Present but not voting: 0; Absent or not voting: 2.
HB 2056, An act concerning the state corporation commission; relating to certain fees;
amending K.S.A. 1998 Supp. 66-1a01 and repealing the existing section, was considered on
final action.
On roll call, the vote was: Yeas 118; Nays 4; Present but not voting: 1; Absent or not
voting: 2.
HB 2065, An act concerning certain joint committees of the legislature; amending K.S.A.
1998 Supp. 46-1701 and 46-2101 and repealing the existing sections, was considered on
final action.
On roll call, the vote was: Yeas 117; Nays 6; Present but not voting: 0; Absent or not
voting: 2.
On motion of Rep. Glasscock, the House went into Committee of the Whole, with Rep.
Mollenkamp in the chair.
COMMITTEE OF THE WHOLE
On motion of Rep. Mollenkamp, Committee of the Whole report, as follows, was adopted:
Recommended that on motion of Rep. Franklin to amend SB 2 on page 11, after line
38, by inserting a new section to read as follows:
``Sec. 5. K.S.A. 1998 Supp. 79-3603 is hereby amended to read as follows: 79-3603. For
the privilege of engaging in the business of selling tangible personal property at retail in this
state or rendering or furnishing any of the services taxable under this act, there is hereby
levied and there shall be collected and paid a tax at the rate of 4.9% upon:
(a) The gross receipts received from the sale of tangible personal property at retail
within this state;
(b) (1) the gross receipts from intrastate telephone or telegraph services and (2) the
gross receipts received from the sale of interstate telephone or telegraph services, which
(A) originate within this state and terminate outside the state and are billed to a customer's
telephone number or account in this state; or (B) originate outside this state and terminate
within this state and are billed to a customer's telephone number or account in this state
except that the sale of interstate telephone or telegraph service does not include: (A) Any
interstate incoming or outgoing wide area telephone service or wide area transmission type
service which entitles the subscriber to make or receive an unlimited number of
communications to or from persons having telephone service in a specified area which is
outside the state in which the station provided this service is located; (B) any interstate
private communications service to the persons contracting for the receipt of that service
that entitles the purchaser to exclusive or priority use of a communications channel or group
of channels between exchanges; (C) any value-added nonvoice service in which computer
processing applications are used to act on the form, content, code or protocol of the
information to be transmitted; (D) any telecommunication service to a provider of
telecommunication services which will be used to render telecommunications services,
including carrier access services; or (E) any service or transaction defined in this section
among entities classified as members of an affiliated group as provided by federal law (U.S.C.
Section 1504). For the purposes of this subsection the term gross receipts does not include
purchases of telephone, telegraph or telecommunications using a prepaid telephone calling
card or pre-paid authorization number. As used in this subsection, a pre-paid telephone
calling card or pre-paid authorization number means the right to exclusively make telephone
calls, paid for in advance, with the prepaid value measured in minutes or other time units,
that enables the origination of calls using an access number or authorization code or both,
whether manually or electronically dialed;
(c) the gross receipts from the sale or furnishing of gas, water, electricity and heat,
which sale is not otherwise exempt from taxation under the provisions of this act, and
whether furnished by municipally or privately owned utilities;
(d) the gross receipts from the sale of meals or drinks furnished at any private club,
drinking establishment, catered event, restaurant, eating house, dining car, hotel, drugstore
or other place where meals or drinks are regularly sold to the public;
(e) the gross receipts from the sale of admissions to any place providing amusement,
entertainment or recreation services including admissions to state, county, district and local
fairs, but such tax shall not be levied and collected upon the gross receipts received from
sales of admissions to any cultural and historical event which occurs triennially;
(f) the gross receipts from the operation of any coin-operated device dispensing or
providing tangible personal property, amusement or other services except laundry services,
whether automatic or manually operated;
(g) the gross receipts from the service of renting of rooms by hotels, as defined by K.S.A.
36-501 and amendments thereto, or by accommodation brokers, as defined by K.S.A. 12-
1692, and amendments thereto;
(h) the gross receipts from the service of renting or leasing of tangible personal property
except such tax shall not apply to the renting or leasing of machinery, equipment or other
personal property owned by a city and purchased from the proceeds of industrial revenue
bonds issued prior to July 1, 1973, in accordance with the provisions of K.S.A. 12-1740
through 12-1749, and amendments thereto, and any city or lessee renting or leasing such
machinery, equipment or other personal property purchased with the proceeds of such
bonds who shall have paid a tax under the provisions of this section upon sales made prior
to July 1, 1973, shall be entitled to a refund from the sales tax refund fund of all taxes paid
thereon;
(i) the gross receipts from the rendering of dry cleaning, pressing, dyeing and laundry
services except laundry services rendered through a coin-operated device whether automatic
or manually operated;
(j) the gross receipts from the rendering of the services of washing and washing and
waxing of vehicles;
(k) the gross receipts from cable, community antennae and other subscriber radio and
television services;
(l) the gross receipts received from the sales of tangible personal property to all
contractors, subcontractors or repairmen of materials and supplies for use by them in
erecting structures for others, or building on, or otherwise improving, altering, or repairing
real or personal property of others;
(m) the gross receipts received from fees and charges by public and private clubs,
drinking establishments, organizations and businesses for participation in sports, games and
other recreational activities, but such tax shall not be levied and collected upon the gross
receipts received from: (1) Fees and charges by any political subdivision, by any organization
exempt from property taxation pursuant to paragraph Ninth of K.S.A. 79-201, and
amendments thereto, or by any youth recreation organization exclusively providing services
to persons 18 years of age or younger which is exempt from federal income taxation pursuant
to section 501(c)(3) of the federal internal revenue code of 1986, for participation in sports,
games and other recreational activities; and (2) entry fees and charges for participation in a
special event or tournament sanctioned by a national sporting association to which spectators
are charged an admission which is taxable pursuant to subsection (e);
(n) the gross receipts received from dues charged by public and private clubs, drinking
establishments, organizations and businesses, payment of which entitles a member to the
use of facilities for recreation or entertainment, but such tax shall not be levied and collected
upon the gross receipts received from: (1) Dues charged by any organization exempt from
property taxation pursuant to paragraphs Eighth and Ninth of K.S.A. 79-201, and
amendments thereto; and (2) sales of memberships in a nonprofit organization which is
exempt from federal income taxation pursuant to section 501 (c)(3) of the federal internal
revenue code of 1986, and whose purpose is to support the operation of a nonprofit zoo;
(o) the gross receipts received from the isolated or occasional sale of motor vehicles or
trailers but not including: (1) The transfer of motor vehicles or trailers by a person to a
corporation solely in exchange for stock securities in such corporation; or (2) the transfer
of motor vehicles or trailers by one corporation to another when all of the assets of such
corporation are transferred to such other corporation; or (3) the sale of motor vehicles or
trailers which are subject to taxation pursuant to the provisions of K.S.A. 79-5101 et seq.,
and amendments thereto, by an immediate family member to another immediate family
member. For the purposes of clause (3), immediate family member means lineal ascendants
or descendants, and their spouses. In determining the base for computing the tax on such
isolated or occasional sale, the fair market value of any motor vehicle or trailer traded in by
the purchaser to the seller may be deducted from the selling price;
(p) the gross receipts received for the service of installing or applying tangible personal
property which when installed or applied is not being held for sale in the regular course of
business, and whether or not such tangible personal property when installed or applied
remains tangible personal property or becomes a part of real estate, except that no tax shall
be imposed upon the service of installing or applying tangible personal property in
connection with the original construction of a building or facility, the original construction,
reconstruction, restoration, remodeling, renovation, repair or replacement of a residence or
the construction, reconstruction, restoration, replacement or repair of a bridge or highway.
For the purposes of this subsection:
(1) ''Original construction`` shall mean the first or initial construction of a new building
or facility. The term ''original construction`` shall include the addition of an entire room or
floor to any existing building or facility, the completion of any unfinished portion of any
existing building or facility and the restoration, reconstruction or replacement of a building
or facility damaged or destroyed by fire, flood, tornado, lightning, explosion or earthquake,
but such term, except with regard to a residence, shall not include replacement, remodeling,
restoration, renovation or reconstruction under any other circumstances;
(2) ''building`` shall mean only those enclosures within which individuals customarily
are employed, or which are customarily used to house machinery, equipment or other
property, and including the land improvements immediately surrounding such building;
(3) ''facility`` shall mean a mill, plant, refinery, oil or gas well, water well, feedlot or any
conveyance, transmission or distribution line of any cooperative, nonprofit, membership
corporation organized under or subject to the provisions of K.S.A. 17-4601 et seq., and
amendments thereto, or of any municipal or quasi-municipal corporation, including the land
improvements immediately surrounding such facility; and
(4) ''residence`` shall mean only those enclosures within which individuals customarily
live;
(q) the gross receipts received for the service of repairing, servicing, altering or
maintaining tangible personal property, except computer software described in subsection
(s), which when such services are rendered is not being held for sale in the regular course
of business, and whether or not any tangible personal property is transferred in connection
therewith. The tax imposed by this subsection shall be applicable to the services of repairing,
servicing, altering or maintaining an item of tangible personal property which has been and
is fastened to, connected with or built into real property;
(r) the gross receipts from fees or charges made under service or maintenance
agreement contracts for services, charges for the providing of which are taxable under the
provisions of subsection (p) or (q);
(s) the gross receipts received from the sale of computer software, and the sale of the
services of modifying, altering, updating or maintaining computer software. As used in this
subsection, ''computer software`` means information and directions loaded into a computer
which dictate different functions to be performed by the computer. Computer software
includes any canned or prewritten program which is held or existing for general or repeated
sale, even if the program was originally developed for a single end user as custom computer
software. The sale of computer software or services does not include: (1) The initial sale of
any custom computer program which is originally developed for the exclusive use of a single
end user; or (2) those services rendered in the modification of computer software when the
modification is developed exclusively for a single end user only to the extent of the
modification and only to the extent that the actual amount charged for the modification is
separately stated on invoices, statements and other billing documents provided to the end
user. The services of modification, alteration, updating and maintenance of computer
software shall only include the modification, alteration, updating and maintenance of
computer software taxable under this subsection whether or not the services are actually
provided; and
(t) the gross receipts received for telephone answering services, including mobile phone
services, beeper services and other similar services; and
(u) the gross receipts received from the sale of prepaid telephone calling cards or pre-
paid authorization numbers and the recharge of such cards or numbers. A pre-paid
telephone calling card or pre-paid authorization number means the right to exclusively make
telephone calls, paid for in advance, with the prepaid value measured in minutes or other
time units, that enables the origination of calls using an access number or authorization
code or both, whether manually or electronically dialed. If the dale or recharge of such card
or number does not take place at the vendor's place of business, it shall be conclusively
determined to take place at the customer's shipping address; if there is no item shipped
then it shall be the customer's billing address.; and
(v) (1) the gross receipts received from sales of food for human consumption at the rate of: (A) 3.3% on June 1, 1999, and before June 1, 2001; and (B) 2.2% on June 1, 2001, and before June 1, 2002; (2) on and after June 1, 2002, all sales of food for human consumption are hereby exempt; and (3) as used in this subsection, ''food for human consumption`` means only that food which is eligible for purchase with food stamps issued by the United States department of agriculture pursuant to regulations in effect on January 1, 1998, regardless of whether the retailer from which the food is purchased is participating in the food stamp program. Such phrase shall not include meals prepared for immediate consumption on or off premises of the retailer.'';
Also on page 11, in line 39, by striking ``and 12-192'' and inserting ``, 12-192 and 79-
3603'';
By renumbering existing sections accordingly;
In the title, in line 16, after the semicolon, by inserting ``exempting sales of food for
human consumption;''; in line 17, by striking ``and 12-192'' and inserting ``, 12-192 and 79-
3603''
Roll call was demanded.
On roll call, the vote was: Yeas 86; Nays 37; Present but not voting: 0; Absent or not
voting: 2.
Also, on motion of Rep. Adkins to amend SB 2, Rep. McKechnie rose on a point of order
that the amendment be ruled out of order because it amended the previously amended
section. Rep. Adkins then withdrew the amendment.
Also, on further motion of Rep. Adkins to amend SB 2, the motion did not prevail and
the bill be passed as amended.
REPORTS OF STANDING COMMITTEES
The Committee on Judiciary recommends HB 2092 be passed and, because the
committee is of the opinion that the bill is of a noncontroversial nature, be placed on the
consent calendar.
The Committee on Transportation recommends HB 2094 be passed and, because the
committee is of the opinion that the bill is of a noncontroversial nature, be placed on the
consent calendar.
Upon unanimous consent, the House referred back to the regular order of business,
Introduction of Bills and Concurrent Resolutions.
INTRODUCTION OF BILLS AND CONCURRENT RESOLUTIONS
The following bills were thereupon introduced and read by title:
HB 2239, An act relating to income taxation; increasing the credit for dependent care;
amending K.S.A. 79-32,111a and repealing the existing section, by Representatives Kirk,
Ballard, Barnes, Crow, Flaharty, Gilbert, Haley, Henderson, Hermes, Jenkins, Klein,
Kuether, M. Long, Nichols, E. Peterson, Rehorn, Ruff, Shriver, Storm, Tedder, Toelkes and
Welshimer.
HB 2240, An act enacting the personal and family protection act; providing for licensure
to carry certain concealed weapons; prohibiting certain acts and prescribing penalties for
violations; amending K.S.A. 1998 Supp. 12-4516, 21-4201 and 21-4619 and repealing the
existing sections, by Committee on Federal and State Affairs.
HB 2241, An act concerning certain county officers; relating to qualifications thereof;
amending K.S.A. 19-301, 19-501 and 19-1201 and K.S.A. 1998 Supp. 19-801b and repealing
the existing sections, by Representative Minor.
HB 2242, An act relating to income taxation; providing credits therefrom for dependent
education expenses and teaching aid contributions; amending K.S.A. 1998 Supp. 79-32,117
and repealing the existing section, by Representatives Landwehr and Aurand and Ballard,
Boston, Compton, Dahl, Dean, Farmer, Flower, Franklin, Freeborn, Geringer, Gilbert,
Glasscock, Gregory, Haley, Hayzlett, Helgerson, Henderson, Henry, Horst, Howell,
Humerickhouse, Hutchins, Jennison, Phill Kline, Lloyd, M. Long, P. Long, Mason, Mayans,
Mays, McClure, McCreary, McKechnie, Mollenkamp, Morrison, Myers, Neufeld, Nichols,
O'Connor, O'Neal, Osborne, Palmer, Pauls, J. Peterson, Phelps, Pottorff, Powell, Reardon,
Ruff, Showalter, Shultz, Spangler, Tanner, Thimesch, Vickrey, Vining and Wagle.
HB 2243, An act relating to property taxation; concerning the exemption therefrom of
farm storage and drying equipment; amending K.S.A. 79-201d and repealing the existing
section, by Committee on Taxation.
HB 2244, An act relating to income taxation; concerning credits therefrom for dependent
care expenses; amending K.S.A. 79-32,111a and repealing the existing section, by
Committee on Taxation.
HB 2245, An act relating to severance taxation; concerning the rate thereof imposed
upon natural gas; amending K.S.A. 79-4219 and K.S.A. 1998 Supp. 79-4217 and repealing
the existing sections, by Committee on Taxation.
HB 2246, An act concerning telecommunications; requiring certain service providers to
provide certain long distance service at or below a certain rate, by Committee on Utilities.
HB 2247, An act concerning public utilities; requiring certain conditions for approval of
certain mergers by the state corporation commission, by Committee on Utilities.
HB 2248, An act concerning divorce; relating to child support and child custody;
mediation; amending K.S.A. 23-601 and 23-602 and K.S.A. 1998 Supp. 60-1610 and
repealing the existing sections, by Representative Gregory.
REPORT ON ENGROSSED BILLS HB 2056, 2065 reported correctly engrossed February 2, 1999.
REPORT ON ENROLLED RESOLUTIONS HR 6007 reported correctly enrolled and properly signed on February 3, 1999.
On motion of Rep. Glasscock, the House adjourned until 11:00 a.m., Thursday, February
4, 1999.