Topeka, KS, Tuesday, February 23, 1999, 11:00 a.m.
The House met pursuant to adjournment with Speaker pro tem Mays in the chair.
The roll was called with 125 members present.
Prayer by Chaplain Svoboda:
Almighty God,
To you all hearts are open,
all desires known,
and from you no secrets are hid.
Help us to understand our intentions as well as you understand them;
to admit our faults to ourselves and others;
and to live in a way that reflects our true desires and concerns.
Strengthen us for this pursuit today and always.
Amen.
The Pledge of Allegiance was led by Rep. Sharp.
CORRECTION OF REFERENCE
Speaker pro tem Mays announced HB 2527 appearing on the Calendar under Reference
of Bills and Concurrent Resolutions as being referred to Committee on Judiciary, should
be corrected to be referred to Committee on Agriculture.
Also, HB 2528 appearing on the Calendar as being referred to Committee on Agriculture,
should be corrected to be referred to Committee on Judiciary.
REFERENCE OF BILLS AND CONCURRENT RESOLUTIONS
The following bills and resolutions were referred to committees as indicated:
Agriculture: HB 2527.
Judiciary: HB 2528.
COMMUNICATIONS FROM STATE OFFICERS
From Kay McFarland, Chief Justice, pursuant to K.S.A. 20-320, State of the Judiciary,
Annual Report of the Chief Justice of the Kansas Supreme Court.
The complete report is kept on file and open for inspection in the office of the Chief
Clerk.
CONSENT CALENDAR
Objection was made to HB 2259 appearing on the Consent Calendar; the bill was placed
on the calendar under the heading of General Orders.
No objection was made to HB 2380 appearing on the Consent Calendar for the first day.
No objection was made to HB 2320 appearing on the Consent Calendar for the second
day.
FINAL ACTION ON BILLS AND CONCURRENT RESOLUTIONS HB 2191, An act concerning school districts; exempting certain persons from certification
of health requirements under certain circumstances; amending K.S.A. 72-5213 and
repealing the existing section, was considered on final action.
On roll call, the vote was: Yeas 123; Nays 2; Present but not voting: 0; Absent or not
voting: 0.
HB 2272, An act concerning certain nonprofit public utilities; amending K.S.A. 66-104c
and repealing the existing section, was considered on final action.
On roll call, the vote was: Yeas 125; Nays 0; Present but not voting: 0; Absent or not
voting: 0.
HB 2321, An act concerning contagious or infectious diseases among domestic animals;
amending K.S.A. 1998 Supp. 47-635 and repealing the existing section, was considered on
final action.
On roll call, the vote was: Yeas 123; Nays 2; Present but not voting: 0; Absent or not
voting: 0.
HCR 5015, A concurrent resolution memorializing the Congress of the United States to
rescind provisions of the Balanced Budget Act of 1997 related to an interim payment system
for medicare home health services, was considered on final action.
On roll call, the vote was: Yeas 125; Nays 0; Present but not voting: 0; Absent or not
voting: 0.
HCR 5021, A concurrent resolution memorializing the President and the United States
Congress to take action to provide funds for independent research into illnesses suffered by
Gulf War veterans and to initiate more effective programs to assist Gulf War veterans and
their families, and urging the Governor of Kansas and appropriate heads of Kansas state
agencies to continue efforts in support of the Kansas Persian Gulf War Veterans Health
Initiative, was considered on final action.
On roll call, the vote was: Yeas 124; Nays 1; Present but not voting: 0; Absent or not
voting: 0.
On motion of Rep. Glasscock, the House went into Committee of the Whole, with Rep.
O'Neal in the chair.
COMMITTEE OF THE WHOLE
On motion of Rep. O'Neal, Committee of the Whole report, as follows, was adopted:
Recommended that HB 2035, 2040 be passed over and retain a place on the calendar.
Committee report to HB 2071 be adopted; also, roll call was demanded on motion of
Rep. Mayans to amend on page 5, by striking line 43;
On page 6, by striking all of lines 1 through 17;
By renumbering sections accordingly;
On page 21, by inserting after line 33, the following three sections:
``Sec. 16. K.S.A. 68-2320 is hereby amended to read as follows: 68-2320. On and after July 1, 1991, The secretary of transportation is hereby authorized and empowered to issue
bonds of the state of Kansas, payable solely from revenues accruing to the state highway
fund and transferred to the highway bond debt service fund and pledged to their payment,
for the purpose of providing funds to pay costs relating to construction, reconstruction,
maintenance or improvement of highways in this state and to pay all expenses incidental
thereto and to the bonds. The secretary is hereby authorized to issue bonds the total, except that the aggregate principal amount of whichbonds outstanding at any one time shall not
exceed $890,000,000$2,690,000,000. In accordance with procurement statutes, the
secretary may contract with financial advisors, attorneys and such other professional services
as the secretary deems necessary to carry out the provisions of this act, and to do all things
necessary or convenient to carry out the powers expressly granted in this act.
Sec. 17. K.S.A. 1998 Supp. 68-2321 is hereby amended to read as follows: 68-2321.
(a) Bonds issued shall be authorized by resolution of the secretary. The secretary shall
determine the form and manner of the execution of the bonds and the bonds may be made
exchangeable for bonds of another denomination or in another form. The bonds shall be
dated and shall mature not more than 2025 years from their date. The bonds may be in
such form and denominations, may bear interest payable at such times and at such rate or
rates, may be payable at such places within or without the state, may be subject to such
terms of redemption in advance of maturity at such prices, and may contain such terms and
conditions, all as the secretary shall determine. The bonds shall have all the qualities of and
shall be deemed to be negotiable instruments under the laws of the state of Kansas. The
authorizing resolution may contain any other terms, covenants and conditions that the
secretary deems reasonable and desirable.
(b) The proceeds from the sale of the bonds authorized to be issued under this section
are deemed to be trust funds which shall be deposited in the custody of the state treasurer
in the highway bond proceeds fund which is hereby created. The secretary shall have
responsibility for the management and control of the highway bond proceeds fund and shall
provide, by resolution, for both amounts and the duration of investments of moneys in such
fund. Such resolution may recommend investment and reporting policies, including
acceptable levels of return, risk and security. After consultation with the secretary and
subject to the terms, covenants and conditions provided in the resolutions providing for the
issuance of such bonds, the director of investments shall have the authority to invest and
reinvest moneys in such fund and to acquire, retain, manage, including the exercise of any
voting rights, and dispose of investments of such fund. In investing or reinvesting moneys
in such fund, there shall be exercised the judgment and care under the circumstances then
prevailing which persons of prudence, discretion and intelligence exercise in the
management of their own affairs, not in regard to speculation but in regard to the permanent
disposition of their funds, considering the probable income as well as the probable safety
of their capital, except that moneys of the fund may not be invested in common stocks.
Notwithstanding anything to the contrary, all interest or other income of the investments,
after payment of any management fees, of the highway bond proceeds fund shall be credited
to the highway bond debt service fund, until payments on bonds authorized by this act and
interest thereon has been fully funded. Thereafter, earnings and other income shall be
credited to the state highway fund.
(c) The authorizing resolution may provide for the execution of a trust indenture. The
trust indenture may contain any terms, covenants and conditions that are deemed desirable
by the secretary, including, without limitation, those pertaining to the maintenance of various
funds and reserves, the nature and extent of any security for payment of the bonds, the
custody and application of the proceeds of the bonds, the collection and disposition of bond
proceeds and earnings thereon, the investing for authorized purposes, and the rights, duties
and obligations of the secretary and the holders and registered owners of the bonds.
(d) Any authorizing resolution and trust indenture relating to the issuance and security
of the bonds may set forth covenants, agreements and obligations therein, which may be
enforced by mandamus or other appropriate proceeding at law or in equity.
(e) The bonds may be issued under the provisions of this act without obtaining the
consent of any department, division, commission, board, bureau or agency of the state and
without any other proceedings or the happening of any other conditions or things than those
proceedings, conditions or things which are specifically required by this act.
Sec. 18. K.S.A. 68-2328 is hereby amended to read as follows: 68-2328. (a) Bonds may
be issued for the purpose of refunding, either at maturity or in advance of maturity, any
bonds issued under this act. Bonds may be issued subsequent to the effective date of this
act for the purpose of refunding, either at maturity or in advance of maturity, bonds issued
under article 23 of chapter 68 of the Kansas Statutes Annotated, and amendments thereto.
Such refunding bonds may either be sold or delivered in exchange for the bonds being
refunded. If sold, the proceeds may either be applied to the payment of the bonds being
refunded or deposited in trust and there maintained in cash or investments for the
retirement of the bonds being refunded, as shall be specified by the secretary and the
authorizing resolution or trust indenture securing such refunding bonds. The authorizing
resolution or trust indenture securing the refunding bonds may provide that the refunding
bonds shall have the same security for their payment as provided for the bonds being
refunded. Refunding bonds shall be sold and secured in accordance with the provisions of
this act pertaining to the sale and security of the bonds. AnyThe amount equal to the difference between the principal amount of the refunding bonds that have been issued
pursuant to this section and the outstanding principal amount of the bonds that have been refunded, shall not be counted toward the limit on the aggregate outstanding principal
amount of bonds established under K.S.A. 68-2320, and amendments thereto.
(b) When all bonds issued under article 23 of chapter 68 of the Kansas Statutes
Annotated, and amendments thereto, have either been paid or the lien of such bonds shall
have been defeased in accordance with their terms so that the bonds are deemed to have
been paid, the secretary of transportation shall certify such facts to the director of accounts
and reports and upon receipt of such certification the director of accounts and reports shall
transfer all moneys in the state freeway fund to the state highway fund and upon such
transfer all liabilities of the state freeway fund are hereby transferred to and imposed upon
the state highway fund and the state freeway fund is hereby abolished. Upon the abolition
of the state freeway fund, any reference to the state freeway fund or any designation thereof,
in any statute, contract or other document shall mean the state highway fund.'';
By renumbering sections accordingly;
On page 33, in line 39, by inserting before ``75-5032'' the following: ``68-2320, 68-2328,'';
in line 42, by inserting before ``and'' the following: ``, 68-2321'';
On page 1, in the title, in line 13, by inserting before ``75-5032'' the following: ``68-2320,
68-2328,''; in line 16, by inserting before ``and'' where it first appears ``, 68-2321'';
On roll call, the vote was: Yeas 0; Nays 125; Present but not voting: 0; Absent or not
voting: 0.
Also, on motion of Rep. Powell to amend HB 2071, the motion did not prevail.
Also, rose and reported progress.
REPORTS OF STANDING COMMITTEES
The Committee on Agriculture recommends HB 2486 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 Agriculture recommends HB 2492 be amended on page 5, in line
25, by striking ``$250'' and inserting ``$200''; also in line 25, by striking ``$400'' and inserting
``$300''; also in line 25, by striking ``$35'' and inserting ``$30''; in line 26, by striking ``$55''
and inserting ``$45'';
On page 6, in line 29, by striking ``$250'' and inserting ``$240''; and the bill be passed as
amended.
The Committee on Business, Commerce and Labor recommends HB 2494 be passed.
The Committee on Education recommends HCR 5010 be adopted and, because the
committee is of the opinion htat the concurrent resolution is of a noncontroversial nature,
be placed on the consent calendar.
The Committee on Education recommends HB 2236 be amended on page 1, in line
20, by striking all after the period; by striking all of lines 21 through 39; in line 41, after
``upon'', by striking ``the''; also in line 41, by striking all after ``request''; in line 42, by striking
``tation services, or the secretary's authorized agent'';
On page 2, in line 1, by striking all after ``pupil''; by striking all of line 2; in line 4, by
striking ``and'' and inserting ``. A school district''; and the bill be passed as amended.
The Committee on Financial Institutions recommends SB 122, as amended by Senate
Committee, 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 Governmental Organization and Elections recommends HB 2080, 2325 be passed.
The Committee on Health and Human Services recommends HB 2362 be passed and,
becuase the committee is of the opinion that the bill is of a noncontroversial nature, be
placed on the consent calendar.
The Committee on Judiciary recommends HB 2276 be amended on page 44, in line
34, after ``come'', by inserting ``or for a one-member LLC taxed as a sole proprietorship,
the net book value of the LLC as calculated on an income tax basis'';
On page 45, in line 15, after ``income'', by inserting ``or for a one-member LLC taxed as
a sole proprietorship, the net book value of the LLC as calculated on an income tax basis'';
in line 22, after the comma, by inserting ``or for a one-member LLC taxed as a sole
proprietorship, $1 for each $1,000 of net book value of the LLC as calculated on an income
tax basis located in or used in this state at the end of the preceding taxable year,''; and the
bill be passed as amended.
The Committee on Utilities recommends HB 2400 be amended on page 6, after line
34, by inserting:
``New Sec. 10. The department of health and environment and the chief engineer of
the division of water resources of the department of agriculture shall consolidate all hearings
by the department or the chief engineer related to the siting or construction of any physical
plant to be used for the production or generation of electricity or electric power.
Sec. 11. K.S.A. 66-1,182 is hereby amended to read as follows: 66-1,182. (a) The
provisions of this act shall not apply to:
(1) Any electric transmission line to be constructed solely on an easement where there currently exists one or more electric transmission lines if the easement is not within the corporate limits of any city or within three miles outside the corporate limits of any city; or
(2) any electric utility which complies with the provisions of the national environmental
policy act of 1969 with regard to the siting of electric transmission lines.
(b) An electric utility may negotiate to construct an electric transmission line on right- of-way of another electric utility. If the two electric utilities cannot reach an agreement regarding construction of such line, the commission shall mediate the dispute.
(c) No environmental study shall be required for construction of an electric transmission line on right-of-way where there currently exists one or more electric transmission lines.
Sec. 12. K.S.A. 1998 Supp. 66-104 is hereby amended to read as follows: 66-104. (a)
The term ``public utility,'' as used in this act, shall be construed to mean every corporation,
company, individual, association of persons, their trustees, lessees or receivers, that now or
hereafter may own, control, operate or manage, except for private use, any equipment, plant
or generating machinery, or any part thereof, for the transmission of telephone messages or
for the transmission of telegraph messages in or through any part of the state, or the
conveyance of oil and gas through pipelines in or through any part of the state, except
pipelines less than 15 miles in length and not operated in connection with or for the general
commercial supply of gas or oil, and all companies for the production, transmission, delivery
or furnishing of heat, light, water or power. No cooperative, cooperative society, nonprofit
or mutual corporation or association which is engaged solely in furnishing telephone service
to subscribers from one telephone line without owning or operating its own separate central
office facilities, shall be subject to the jurisdiction and control of the commission as provided
herein, except that it shall not construct or extend its facilities across or beyond the territorial
boundaries of any telephone company or cooperative without first obtaining approval of the
commission. As used herein, the term ''transmission of telephone messages`` shall include
the transmission by wire or other means of any voice, data, signals or facsimile
communications, including all such communications now in existence or as may be
developed in the future.
(b) The term ``public utility'' shall also include that portion of every municipally owned
or operated electric or gas utility located outside of and more than three miles from the
corporate limits of such municipality, but nothing in this act shall apply to a municipally
owned or operated utility, or portion thereof, located within the corporate limits of such
municipality or located outside of such corporate limits but within three miles thereof except
as provided in K.S.A. 66-131a, and amendments thereto.
(c) Except as herein provided, the power and authority to control and regulate all public
utilities and common carriers situated and operated wholly or principally within any city or
principally operated for the benefit of such city or its people, shall be vested exclusively in
such city, subject only to the right to apply for relief to the corporation commission as
provided in K.S.A. 66-133, and amendments thereto, and to the provisions of K.S.A. 66-
131a and K.S.A. 1998 Supp. 66-104e, and amendments thereto. A transit system principally
engaged in rendering local transportation service in and between contiguous cities in this
and another state by means of street railway, trolley bus and motor bus lines, or any
combination thereof, shall be deemed to be a public utility as that term is used in this act
and, as such, shall be subject to the jurisdiction of the commission.
(d) The term ``public utility'' shall not include any activity of an otherwise jurisdictional
corporation, company, individual, association of persons, their trustees, lessees or receivers
as to the marketing or sale of compressed natural gas for end use as motor vehicle fuel.
(e) The term ``public utility'' shall not include any activity of an otherwise jurisdictional entity as to the generation, marketing and sale of electricity generated by a nonnuclear electric generation facility construction no portion of which is included in the rate base of: (1) An electric public utility that is subject to rate regulation by the state corporation commission; (2) any cooperative, as defined by K.S.A. 17-4603 and amendments thereto, or any nonstock member-owned cooperative corporation incorporated in this state; or (3) a municipally owned or operated electric utility.
New Sec. 13. (a) As used in this section, ``independent power producer property''
means property used solely in the generation, marketing and sale of electricity generated
by an electric generation facility no portion of which is included in the rate base of: (1) An
electric public utility that is subject to rate regulation by the state corporation commission;
(2) a cooperative, as defined by K.S.A. 17-4603 and amendments thereto, or a nonstock
member-owned cooperative corporation incorporated in this state; or (3) a municipally
owned or operated electric utility.
(b) For all taxable years commencing on or after July 1, 1999, independent power
producer property is commercial and industrial property for the purposes of taxation of real
property and tangible personal property.
Sec. 14. K.S.A. 79-5a01 is hereby amended to read as follows: 79-5a01. (a) As used in
this act, the terms ``public utility'' or ``public utilities'' shall mean every individual, company,
corporation, association of persons, lessees or receivers that now or hereafter are in control,
manage or operate a business of:
(1) A railroad or railroad corporation if such railroad or railroad corporation owns or
holds, by deed or other instrument, an interest in right-of-way, track, franchise, roadbed or
trackage in this state;
(2) transmitting to, from, through or in this state telegraphic messages;
(3) transmitting to, from, through or in this state telephonic messages;
(4) transporting or distributing to, from, through or in this state natural gas, oil or other
commodities in pipes or pipelines, or engaging primarily in the business of storing natural
gas in an underground formation;
(5) generating, conducting or distributing to, from, through or in this state electric
power;
(6) transmitting to, from, through or in this state water if for profit or subject to
regulation of the state corporation commission;
(7) transporting to, from, through or in this state cargo or passengers by means of any
vessel or boat used in navigating any of the navigable watercourses within or bordering upon
this state.
(b) The terms ``public utility'' or ``public utilities'' shall not include: (1) Rural water
districts established under the laws of the state of Kansas; or (2) any individual, company,
corporation, association of persons, lessee or receiver owning or operating an oil or natural
gas production gathering line which is situated within one county in this state and does not
cross any state boundary line; or (3) any individual, company, corporation, association of
persons, lessee or receiver owning any vessel or boat operated upon the surface of any
manmade waterway located entirely within one county in the state.; or (4) for all taxable years commencing on or after July 1, 1999, the business of generating, marketing and selling electricity generated by a nonnuclear electric generation facility no portion of which is included in the rate base of: (A) An electric public utility that is subject to rate regulation by the state corporation commission; (B) a cooperative, as defined by K.S.A. 17-4603 and amendments thereto, or a nonstock member-owned cooperative corporation incorporated in this state; or (C) a municipally owned or operated electric public utility.'';
Also on page 6, by renumbering sections 10 and 11 as sections 15 and 16; in line 36, by
striking all before ``66-1,158'' and inserting ``, 66-1,169c, 66-1,182 and 79-5a01 and K.S.A.
1998 Supp. 66-104,'';
In the title, in line 9, by striking ``siting of certain electric generation facilities'' and
inserting ``electric service; relating to siting and construction of certain electric generation
facilities and electric transmission lines; relating to regulation and taxation of owners and
operators of certain electric generation facilities''; in line 11, by striking all before ``66-1,158''
and inserting ``, 66-1,169c, 66-1,182 and 79-5a01 and K.S.A. 1998 Supp. 66-104,''; and the
bill be passed as amended.
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 bill was thereupon introduced and read by title:
HB 2529, An act concerning the state board of cosmetology; persons and practices
regulated by the board; permanent color technology, tattooing and body piercing; amending
K.S.A. 1998 Supp. 65-1940, 65-1941, 65-1942, 65-1943, 65-1944, 65-1945, 65-1946, 65-
1947, 65-1948, 65-1949, 65-1950 and 65-1954 and repealing the existing sections; also
repealing K.S.A. 1998 Supp. 65-1952, by Committee on Federal and State Affairs.
On motion of Rep. Glasscock, the House recessed until 5:00 p.m.