The House met pursuant to adjournment with Speaker pro tem Mays in the chair.
The roll was called with 123 members present.
Reps. Johnston and O'Connor were excused on excused absence by the Speaker.
Prayer by Chaplain Svoboda:
Holy and Loving God-
The end is near, and we are tired.
We have worked faithfully to do what is right this session,
but now it is late.
Things haven't gone as well as we'd hoped.
Exhaustion is setting in.
Be with us to strengthen us for these last days.
Help us to make each decision today
as thoughtfully and wisely as we made each decision
on the first day of this session.
Help us to be as eager to offer a smile, a pat on the back,
or a word of encouragement
as we were on the first day of this session.
And may we complete our work here
with dignity and grace,
strength and commitment.
In your name we pray-
Amen.
The Pledge of Allegiance was led by Rep. Schwartz.
REFERENCE OF BILLS AND CONCURRENT RESOLUTIONS
The following bills and resolutions were referred to committees as indicated:
Appropriations: SB 323, 326, 358.
Committee of the Whole: HCR 5041.
Insurance: SB 356.
MESSAGES FROM THE GOVERNOR HB 2135, 2137, 2154, 2155, 2206, 2222, 2471 approved on April 3, 1999.
Also, HB 2056, 2076 approved on April 5, 1999.
INTRODUCTION OF GUESTS
Rep. Wells introduced Gwendolyn Jones, a student at Wichita High School East, and
addressed a few remarks about the many awards she has received. Rep. Gilbert presented
her with a certificate.
CHANGE OF CONFEREES
Speaker pro tem Mays announced the appointment of Rep. Spangler as a member of the
conference committee on SB 170 to replace Rep. Reardon.
On motion of Rep. Glasscock, the House went into Committee of the Whole, with Rep.
Boston in the chair.
COMMITTEE OF THE WHOLE
On motion of Rep. Boston, Committee of the Whole report, as follows, was adopted:
Recommended that HB 2568 be passed.
Committee report to HB 2410 be adopted; and the bill be passed as amended.
Committee report recommending a substitute bill to Sub. HB 2007 be adopted; and the
substitute bill be passed.
On motion of Rep. Glasscock, the House recessed until 2:00 p.m.
______
Afternoon Session
The House met pursuant to recess with Speaker pro tem Mays in the chair.
INTRODUCTION OF BILLS AND CONCURRENT RESOLUTIONS
The following bill was introduced and read by title:
HB 2572, An act concerning abortions; imposing requirements after the performance of
an abortion; relating to certain reports, by Committee on Federal and State Affairs.
MESSAGES FROM THE GOVERNOR HB 2012 approved on April 7, 1999.
MESSAGE FROM THE SENATE
The Senate adopts the conference committee report to agree to disagree on HB 2071
and has appointed Senators Gary Hayzlett, Langworthy, Kerr, Vidricksen, Petty and Lee as second
conferees on the part of the Senate.
CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on House
amendments to SB 60, submits the following report:
The Senate accedes to all House amendments to the bill, and your committee on
conference further agrees to amend the bill, as printed as House Substitute for Senate Bill
No. 60, as follows:
On page 3, by striking lines 37 through 39 and inserting sections 2 through 16 as follows:
``Sec. 2. K.S.A. 12-2620 is hereby amended to read as follows: 12-2620. (a) All
certificates granted hereunder shall be perpetual unless sooner suspended or revoked by
the commissioner or the attorney general.
(b) Whenever the commissioner shall deem it necessary the commissioner may make,
or direct to be made, an examination of the affairs and the financial condition of any pool,
except that once every five years the commissioner shall conduct an examination of the
affairs and the financial condition of each pool. Each pool shall submit a certified
independent audited financial statement no later than 90 days after the end of the fiscal
year. The financial statement shall include outstanding reserves for claims and for claims
incurred but not reported. Each pool shall file reports as to income, expenses and loss data
at such times and in such manner as the commissioner shall require. Any pool which does not use rates developed by an approved rating organization shall file with the commissioner an actuarial certification that such rates are actuarially sound. Whenever it appears to the
commissioner from such examination or other satisfactory evidence that the ability to pay
current and future claims of any such pool is impaired, or that it is doing business in violation
of any of the laws of this state, or that its affairs are in an unsound condition so as to endanger
its ability to pay or cause to be paid claims in the amount, manner and time due, the
commissioner shall, before filing such report or making the same public, grant such pool
upon reasonable notice a hearing, and, if on such hearing the report be confirmed, the
commissioner shallmay require any of the actions allowed under K.S.A. 40-222b and amendments thereto or suspend the certificate of authority for such pool until its ability to
pay current and future claims shall have been fully restored and the laws of the state fully
complied with. The commissioner may, if there is an unreasonable delay in restoring the
ability to pay claims of such pool and in complying with the law or if rehabilitation or corrective action taken under K.S.A. 40-222b and amendments thereto is unsuccessful,
revoke the certificate of authority of such pool to do business in this state. Upon revoking
any such certificate the commissioner shall communicate the fact to the attorney general,
whose duty it shall be to commence and prosecute an action in the proper court to dissolve
such pool or to enjoin the same from doing or transacting business in this state. The
commissioner of insurance may call a hearing under K.S.A. 40-222b, and amendments
thereto, and the provisions thereof shall apply to group-funded pools.
(c) On an annual basis, or within 30 days of any change thereto, each pool shall supply to the commissioner the name and qualifications of the designated administrator of the pools and the terms of the specific and aggregate excess insurance contracts of the pool.
Sec. 3. K.S.A. 1998 Supp. 12-2621 is hereby amended to read as follows: 12-2621. (a)
With respect to the categories of coverage described in subparagraphs (d)(1) through (4) of
K.S.A. 12-2618, and amendments thereto, premium contributions to the pool shall be based
upon appropriate manual classification and rates, plus or minus applicable experience credits
or debits, and minus any advance discount approved by the trustees, not to exceed 25% of
manual premium. The pool shall use rules, classifications and rates as promulgated by an
approved rating organization for workers compensation if the pool has been in operation
for less than five years. Such rates shall either be the rates effective June 1, 1994, or the
prospective loss costs, as defined in K.S.A. 40-1113c, and amendments thereto, plus
expenses necessary to administer the pool. For purposes of subsection (b), the prospective
loss costs shall be presumed to be the 70% required to be deposited in the claims fund. If
the pool has been in operation for more than five years, the board of trustees may determine
such rates and discounts as approved by the commissioner. Premium contributions to the
pool for all other lines of insurance shall be based on rates filed by a licensed rating
organization or on rates of certain companies filing rates with the commissioner and
approved by the commissioner for the pool. In lieu of the foregoing, the board of trustees
may determine such classification, rates and discounts as approved by the commissioner.
Premium contributions to any pool providing life insurance or any pool providing group
sickness and accident insurance as described in K.S.A. 12-2617, and amendments thereto,
shall be based on sound actuarial principles.
(b) An amount equal to at least 70% of the annual premium shall be maintained in a
designated depository for the purpose of paying claims in a claims fund account. If the pool has been in operation for more than five years the commissioner may authorize allocation of a different amount to the claims fund account, if solvency of the pool would not be endangered. The remaining annual premium shall be placed into a designated depository
for the payment of taxes, fees and administrative and other operational costs in an
administrative fund account.
(c) Any moneys for a fund year in excess of the amount necessary to fulfill all obligations
of the pool for that fund year, including any obligation to retain adequate surplus funds, as
defined by subsection (h) of K.S.A. 12-2618, and amendments thereto, in lieu of specific
and aggregate excess insurance, may be declared to be refundable by the trustees not less
than 12 months after the end of the fund year. Any such refund shall be paid only to those
members who remained participants in the pool for an entire year. Payment of previously
earned refunds shall not be contingent on continued membership in the pool.
Sec. 4. K.S.A. 12-2622 is hereby amended to read as follows: 12-2622. The trustees
shall not utilize any of the contributions collected as premiums for any purpose unrelated
to the pool. Moneys not needed for current obligations may be invested by the trustees. Such investments shall be limited to bonds or other evidences of indebtedness issued, assumed or guaranteed by the United States of America, or by any agency or instrumentality thereof; in certificates of deposit in a federally insured bank located in Kansas; or in shares or savings deposits in a federally insured savings and loan association located in KansasSuch investments shall be limited to investments permitted by K.S.A. 12-1677b and 75-4209 and amendments thereto, except that a pool which has been in existence for at least five years shall be permitted to invest in any of the securities or other investments permitted by article 2a of chapter 40 of the Kansas Statutes Annotated.
Sec. 5. K.S.A. 1998 Supp. 44-584 is hereby amended to read as follows: 44-584. (a) The
application for a new certificate shall be signed by the trustees of the trust fund created by
the pool. Any application for a renewal of an existing certificate shall meet at least the
standards established in subsections (f), (g), (h), (i), (j), (k), (l), (m) and (n) of K.S.A. 44-582
and amendments thereto. After evaluating the application the commissioner shall notify the
applicant that the plan submitted is approved or conversely, if the plan submitted is
inadequate, the commissioner shall then fully explain to the applicant what additional
requirements must be met. If the application is denied, the applicant shall have 15 days to
make an application for hearing by the commissioner after service of the denial notice. The
hearing shall be conducted in accordance with the provisions of the Kansas administrative
procedure act.
(b) An approved certificate of authority shall remain in full force and effect until such
certificate is suspended or revoked by the commissioner. An existing pool operating under
an approved certificate of authority must file with the commissioner, within 120 days
following the close of the pool's fiscal year, a current financial statement on a form approved
by the commissioner showing the financial ability of the pool to meet its obligations under
the worker compensation act and confirmation of specific and aggregate excess insurance
as required by law for the pool. If an existing pool's certificate of authority is suspended or
revoked, such pool shall have the same rights to a hearing by the commissioner as for
applicants for new certificates of authority as set forth in subsection (a) above.
(c) Whenever the commissioner shall deem it necessary the commissioner may make,
or direct to be made, an examination of the affairs and financial condition of any pool in accordance with K.S.A. 40-222 and K.S.A. 40-223 and amendments thereto, except that once
every five years the commissioner shall conduct an examination of the affairs and financial
condition of each pool. Each pool shall submit a certified independent audited financial
statement no later than 90 days after the end of the pool's fiscal year. The financial statement
shall include outstanding reserves for claims and for claims incurred but not reported. Each
pool shall file payroll records, accident experience and compensation reports and such other
reports and statements at such times and in such manner as the commissioner shall require.
Whenever it appears to the commissioner from such examination or other satisfactory
evidence that the solvency of any such pool is impaired, or that it is doing business in
violation of any of the laws of this state, or that its affairs are in an unsound condition so as
to endanger its ability to pay or cause to be paid the compensation in the amount, manner
and time due as provided for in the Kansas workers compensation act, the commissioner
shall, before filing such report or making the same public, grant such pool upon reasonable
notice a hearing in accordance with the provisions of the Kansas administrative procedure
act, and, if on such hearing the report be confirmed, the commissioner shall suspend the
certificate of authority for such pool until its solvency shall have been fully restored and the
laws of the state fully complied with. The commissioner may, if there is an unreasonable
delay in restoring the solvency of such pool and in complying with the law, revoke the
certificate of authority of such pool to do business in this state. Upon revoking any such
certificate the commissioner shall communicate the fact to the attorney general, whose duty
it shall be to commence and prosecute an action in the proper court to dissolve such pool
or to enjoin the same from doing or transacting business in this state. The commissioner of
insurance may call a hearing under K.S.A. 40-222b, and amendments thereto, and the
provisions shall apply to group workers compensation pools.
Sec. 6. K.S.A. 1998 Supp. 44-585 is hereby amended to read as follows: 44-585. (a)
Premium contributions to the pool shall be based upon appropriate manual classification
and rates, plus or minus applicable experience credits or debits, and minus any advance
discount approved by the trustees, not to exceed 15% of manual premium. The pool must
use rules, classifications and rates as promulgated by an approved rating organization and
must report premium and loss data to a rating organization. Such rates shall either be the
rates effective June 1, 1994, or the prospective loss costs, as defined in K.S.A. 40-1113, and
amendments thereto, plus expenses necessary to administer the pool. For purposes of
subsection (b) the prospective loss costs shall be presumed to be the 70% required to be
deposited in the claims fund. If the pool has been in operation for more than five years, the
board of trustees may determine such rates as approved by the commissioner.
(b) At least 70% of the annual premium shall be placed into a designated depository
for the sole purpose of paying claims. If so approved by the commissioner of insurance, the
annual premium to be designated to such depository may be determined to be the net
amount of premium after all or a portion of the specific and aggregate excess insurance
premium costs have been paid. This shall be called the claims fund account. The remaining
annual premium shall be placed into a designated depository for the payment of taxes, fees
and administrative costs. This shall be called the administrative fund account. If a pool has been in operation for more than five years, the commissioner may authorize allocation of a different amount to the claims fund account, if solvency of the pool would not be endangered.
(c) Any surplus moneys for a fund year in excess of the amount necessary to fulfill all
obligations under the workers compensation act for that fund year may be declared to be
refundable by the trustees not less than 12 months after the end of the fund year, upon the
approval of the commissioner. Such approval can be obtained only upon satisfactory
evidence that sufficient funds remain on deposit for the payment of all outstanding claims
and expenses, including incurred but not reported claims. Any such refund shall be paid
only to those employers who remained participants in the pool for an entire year. Payment
of previously earned refunds shall not be contingent on continued membership in the pool.
Sec. 7. K.S.A. 44-586 is hereby amended to read as follows: 44-586. The trustees shall
not utilize any of the moneys collected as premiums for any purpose unrelated to Kansas
workers' compensation. Moneys not needed for current obligations may be invested by the
trustees. Such investments shall be limited to bonds or other evidences of indebtedness issued, assumed or guaranteed by the United States of America, or by any agency or instrumentality thereof; in certificates of deposit in a federally insured bank; or in shares or savings deposits in a federally insured savings and loan associationUnless authorized elsewhere in this act, all funds of a pool shall be invested only in securities or other investments permitted by article 2a of chapter 40 of the Kansas Statutes Annotated, or such other securities or investments as the commissioner may permit.
New Sec. 8. The purpose of sections 8 through 14 is to provide the state of Kansas with
a comprehensive body of law for the effective regulation and supervision of title insurance
agencies engaged in settlement and closing of the sale of an interest in real estate.
New Sec. 9. As used in this act, unless the context otherwise requires:
(a) ``Commissioner'' means the commissioner of insurance of the state of Kansas.
(b) ``Escrow'' means written instruments, money or other items deposited by one party
with a depository, escrow agent or escrow for delivery to another party upon the
performance of a specified condition or the happening of a certain event.
(c) ``Person'' means a natural person, partnership, association, cooperative, corporation,
trust or other legal entity.
(d) ``Qualified financial institution'' means an institution that is:
(1) Organized or (in the case of a U.S. branch or agency office of a foreign banking
organization) licensed under the laws of the United States or any state and has been granted
authority to operate with fiduciary powers;
(2) regulated, supervised and examined by federal or state authorities having regulatory
authority over banks and trust companies;
(3) insured by the appropriate federal entity; and
(4) qualified under any additional rules established by the commissioner.
(e) ``Title insurance agent'' or ``agent'' means an authorized person, other than a bona
fide employee of the title insurer who, on behalf of the title insurer, performs the following
acts, in conjunction with the issuance of a title insurance report or policy:
(1) Determines insurability and issues title insurance reports or policies, or both, based
upon the performance or review of a search, or an abstract of title;
(2) collects or disburses premiums, escrow or security deposits or other funds;
(3) handles escrow, settlements or closings;
(4) solicits or negotiates title insurance business; or
(5) records closing documents.
(f) ``Title insurer'' or ``insurer'' means a company organized under laws of this state for
the purpose of transacting the business of title insurance and any foreign or non-U.S. title
insurer licensed in this state to transact the business of title insurance.
(g) ``Title insurance policy'' or ``policy'' means a contract insuring or indemnifying
owners of, or other persons lawfully interested in, real or personal property or any interest
in real property, against loss or damage arising from any or all of the following conditions
existing on or before the policy date and not excepted or excluded:
(1) Defects in or liens or encumbrances on the insured title;
(2) unmarketability of the insured title;
(3) invalidity, lack of priority, or unenforceability of liens or encumbrances on the stated
property;
(4) lack of legal right of access to the land; or
(5) unenforceability of rights in title to the land.
New Sec. 10. A title insurance agent may operate as an escrow, settlement or closing
agent, provided that:
(a) All funds deposited with the title insurance agent in connection with an escrow,
settlement or closing shall be submitted for collection to, invested in or deposited in a
separate fiduciary trust account or accounts in a qualified financial institution no later than
the close of the next business day, in accordance with the following requirements:
(1) The funds shall be the property of the person or persons entitled to them under the
provisions of the escrow, settlement or closing agreement and shall be segregated for each
depository by escrow, settlement or closing in the records of the title insurance agent in a
manner that permits the funds to be identified on an individual basis;
(2) the funds shall be applied only in accordance with the terms of the individual
instructions or agreements under which the funds were accepted; and
(3) an agent shall not retain any interest on any money held in an interest-bearing
account without the written consent of all parties to the transaction.
(b) Funds held in an escrow account shall be disbursed only:
(1) Pursuant to written authorization of buyer and seller;
(2) pursuant to a court order; or
(3) when a transaction is closed according to the agreement of the parties.
(c) A title insurance agent shall not commingle the agent's personal funds or other
moneys with escrow funds. In addition, the agent shall not use escrow funds to pay or to
indemnify against the debts of the agent or of any other party. The escrow funds shall be
used only to fulfill the terms of the individual escrow and none of the funds shall be utilized
until the necessary conditions of the escrow have been met. All funds deposited for real
estate closings, including closings involving refinances of existing mortgage loans, which
exceed $2,500 shall be in one of the following forms:
(1) Lawful money of the United States;
(2) wire transfers such that the funds are unconditionally received by the title insurance
agent or the agent's depository;
(3) cashier's checks, certified checks or bank money orders issued by a federally insured
financial institution and unconditionally held by the title insurance agent;
(4) funds received from governmental entities or drawn on an escrow account of a real
estate broker licensed in the state or drawn on an escrow account of a title insurer or title
insurance agent licensed to do business in the state; or
(5) other negotiable instruments which have been on deposit in the escrow account at
least 10 days.
(d) Each title insurance agent shall have an audit made of its escrow, settlement and
closing deposit accounts, conducted by a certified public accountant or by a title insurer for
which the title insurance agent has a licensing agreement, according to the following
schedule. Audits shall be considered current if dated within the 12 months prior to
submission of the audit as required herein. The title insurance agent shall provide a copy
of the audit report to the commissioner and to each title insurance company which it
represents within 160 days after the close of the calendar year for which an audit is required.
Title insurance agents who are attorneys and who issue title insurance policies as part of
their legal representation of clients are exempt from the requirements of this subsection.
However, the title insurer, at its expense, may conduct or cause to be conducted an annual
audit of the escrow, settlement and closing accounts of the attorney. Attorneys who are
exclusively in the business of title insurance are not exempt from the requirements of this
subsection. Audits shall be required as follows:
(1) Annual audit required in counties having a population of 40,001 and over;
(2) biennial audit required in counties having a population of 20,001 - 40,000; and
(3) triennial audit required in counties having a population of 20,000 or under.
(e) The commissioner may promulgate rules and regulations setting forth the standards
of the audit and the form of audit report required.
(f) If the title insurance agent is appointed by two or more title insurers and maintains
fiduciary trust accounts in connection with providing escrow and closing settlement services,
the title insurance agent shall allow each title insurer reasonable access to the accounts and
any or all of the supporting account information in order to ascertain the safety and security
of the funds held by the title insurance agent.
(g) Nothing in this section is intended to amend, alter or supersede other laws of this
state or the United States, regarding an escrow holder's duties and obligations.
New Sec. 11. (a) The title insurance agent shall maintain sufficient records of its escrow
operations and escrow trust accounts so that the commissioner may adequately ensure that
the title insurance agent is in compliance with all provisions of sections 8 through 14 and
amendments thereto. The commissioner may prescribe the specific record entries and
documents to be kept and the length of time for which the records must be maintained.
(b) The title insurance agent shall make available for inspection by the commissioner,
or the commissioner's representatives, all records relating to the title insurance agent's
escrow, settlement and closing business, and any other fiduciary trust accounts required to
be kept by the title insurance agent. Such availability for inspection shall include any records
to which subsection (f) of section 10 and amendments thereto applies.
New Sec. 12. (a) The title insurance agent who handles escrow, settlement or closing
accounts shall file with the commissioner a surety bond or irrevocable letter of credit in a
form acceptable to the commissioner, issued by an insurance company or financial institution
authorized to conduct business in this state, securing the applicant's or the title insurance
agent's faithful performance of all duties and obligations set out in sections 8 through 14
and amendments thereto.
(b) The terms of the bond or irrevocable letter of credit shall be:
(1) The surety bond shall provide that such bond may not be terminated without 30
days prior written notice to the commissioner.
(2) An irrevocable letter of credit shall be issued by a bank which is insured by the
federal deposit insurance corporation or its successor if such letter of credit is initially issued
for a term of at least one year and by its terms is automatically renewed at each expiration
date for at least an additional one-year term unless at least 30 days prior written notice of
intention not to renew is given to the commissioner of insurance.
(c) The amount of the surety bond or irrevocable letter of credit for those agents
servicing real estate transactions on property located in counties having a certain population
shall be required as follows:
(1) $100,000 surety bond or irrevocable letter of credit in counties having a population
of 40,001 and over;
(2) $50,000 surety bond or irrevocable letter of credit in counties having a population
of 20,001 to 40,000; and
(3) $25,000 surety bond or irrevocable letter of credit in counties having a population
of 20,000 or under.
(d) The surety bond or irrevocable letter of credit shall be for the benefit of any person
suffering a loss if the title insurance agent converts or misappropriates money received or
held in escrow, deposit or trust accounts while acting as a title insurance agent providing
any escrow or settlement services.
New Sec. 13. The commissioner may issue rules, regulations and orders necessary to
carry out the provisions of sections 8 through 14 and amendments thereto.
New Sec. 14. If the commissioner determines that the title insurance agent or any other
person has violated this act, or any rules and regulation or order promulgated thereunder,
after notice and opportunity to be heard, the commissioner may order that such person be
subject to the penalties provided in K.S.A. 40-2406 et seq. and amendments thereto.
Sec. 15. K.S.A. 12-2620, 12-2622 and 44-586 and K.S.A. 1998 Supp. 12-2621, 40-112,
40-112a, 44-584 and 44-585 are hereby repealed.
Sec. 16. This act shall take effect and be in force from and after its publication in the
statute book.'';
On page 1, in the title, in line 9, by striking ``concerning'' and inserting ``relating to''; also
in line 9, following the semicolon, by inserting ``concerning municipal funded pools;
concerning title insurance and escrow accounts; concerning the''; in line 10, by striking all
after ``K.S.A.''; in line 11 by striking all before the semicolon and inserting ``amending 12-
2620, 12-2622 and 44-586 and K.S.A. 1998 Supp. 12-2621, 40-112, 44-584 and 44-585 and
repealing the existing sections''.
And your committee on conference recommends the adoption of this report.
Robert Tomlinson
Don Myers
Eber Phelps
Don Steffes
Sandy Praeger
Paul Feleciano, Jr.
On motion of Rep. Tomlinson, the conference committee report on H. Sub. for SB 60
was adopted.
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: 2.
CONFERENCE COMMITTEE REPORT
Mr. President and Mr. Speaker: Your committee on conference on House
amendments to SB 62, submits the following report:
The Senate accedes to all House 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 3, by striking all in lines 2 through 43;
On page 4, by striking all in lines 1 through 13;
By renumbering the remaining sections accordingly;
Also on page 4, in line 14, by striking ``, 75-4318'';
On page 1, in the title, in line 15, by striking all after the ``semicolon''; in line 16, by
striking all before ``amending''; also in line 16 by striking ``, 75-4318''
And your committee on conference recommends the adoption of this report.
Lisa Benlon
Ted Powers
Gwen Welshimer
Janice Hardenburger
U.L. Gooch
Rich Becker
On motion of Rep. Benlon, the conference committee report on SB 62 was adopted.
On roll call, the vote was: Yeas 98; Nays 25; Present but not voting: 0; Absent or not
voting: 2.
The motion prevailed, and Speaker pro tem Mays thereupon appointed Reps. Hayzlett,
Ballou, Aurand, Larkin and Findley as second conferees on the part of the House.
MOTIONS TO CONCUR AND NONCONCUR
On motion of Rep. Adkins, the House concurred in Senate amendments to HB 2565,
An act relating to Washburn University of Topeka; concerning the financing and governance
thereof; amending K.S.A. 12-198,13-13a04, 13-13a05, 13-13a18 and 13-13a25 and K.S.A.
1998 Supp. 13-13a23 and repealing the existing sections.
On roll call, the vote was: Yeas 106; Nays 17; Present but not voting: 0; Absent or not
voting: 2.
On motion of Rep. Wagle, the House concurred in Senate amendments to 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.
On roll call, the vote was: Yeas 123; Nays 0; Present but not voting: 0; Absent or not
voting: 2.
REPORTS OF STANDING COMMITTEES
The House Select Committee on Tobacco Settlement Proceeds recommends HB 2558 be amended on page 1, in line 19, by striking ``children's trust'' and inserting ``Kansas
endowment for youth''; in line 21, by striking ``3'' and inserting ``4''; in line 27, by striking
``chil-''; in line 28, by striking ``dren's trust'' and inserting ``Kansas endowment for youth'';
in line 29, by striking ``children's trust'' and inserting ``Kansas endowment for youth''; in line
31, by striking the last ``children's''; in line 32, by striking ``trust'' and inserting ``Kansas
endowment for youth''; in line 33, by striking ``authority and the children's trust fund'' and
inserting ``cabinet and the Kansas endowment for youth''; also in line 33, following
``trustees'', by inserting ``, which are attributable to the Kansas endowment for youth fund'';
in line 34, by striking ``children's trust'' and inserting ``Kansas endowment for youth''; in line
35, by striking ``children's trust'' and inserting ``Kansas endowment for youth''; in line 38,
by striking ``children's initiatives'' and inserting ``Kansas endowment for youth'';
On page 2, in line 1, by striking ``children's trust'' and inserting ``Kansas endowment for
youth''; in line 15, following the period, by inserting ``Programs funded must have a clearly
articulated objective to be achieved with any funds received. As a condition precedent to
funding, every program must demonstrate that the program's design is supported by credible
research, that the program as implemented will constitute best practices in the field, that
data is available to benchmark the program's desired outcomes and that an evaluation and
assessment component is part of the program design and that such evaluation is capable of
determining program performance, needed program modifications to enhance performance,
ways in which the program could be modified for transfer to other venues, and when
performance no longer justifies funding. Community-based programs must demonstrate the
availability of sufficient community leadership and the capacity to appropriately implement
and administer the program that is funded. Programs which require community mobilization
to successfully achieve program objectives must demonstrate a specific strategy to obtain
the requisite levels of community mobilization.'';
Also on page 2, in line 23, following the ``(d)'' by inserting ``(1)''; in line 24, following
``transfer'' by inserting ``, in the following order of priority, (A) first, $5,000,000 from the
Kansas endowment for youth fund to the family and children endowment account of the
family and children investment fund; (B) second, $20,740,000 from the Kansas endowment
for youth fund to the state general fund; and (C) third, $30,000,000 from the Kansas
endowment for youth fund to the children's initiatives fund.
(2) On July 1, 2001, or as soon thereafter as moneys are available, the director of
accounts and reports shall transfer $40,000,000 from the Kansas endowment for youth fund
to the children's initiatives fund.
(3) On July 1, 2002, or as soon thereafter as moneys are available, the director of
accounts and reports shall transfer''; in line 25, following the period, by inserting a new
paragraph ``(4)''; in line 27, by striking ``children's trust'' and inserting ``Kansas endowment
for youth''; in line 29, by striking ``children's trust'' and inserting ``Kansas endowment for
youth''; in line 31 following the period, by inserting a new paragraph ``(5)''; in line 38, by
striking ``chil-''; in line 39, by striking ``dren's trust'' and inserting ``Kansas endowment for
youth''; in line 42, by striking ``children's trust'' and inserting ``Kansas endowment for youth''
in line 43, following period, by inserting ``In addition, for purposes of circumstances related
to the investment of moneys in the children's trust fund or other circumstances or matters
deemed sufficient by the legislature, the legislature may adjust the amount otherwise
provided by this subsection to be transferred from the children's trust fund to the children's
initiatives fund for any fiscal year by including provisions in appropriation acts for such fiscal
year that proportionally reduce or increase, as appropriate, the amount otherwise provided
by this subsection to be transferred from the children's trust fund to the children's initiatives
fund for such fiscal year.'';
On page 3, in line 2, by striking ``children's trust'' and inserting ``Kansas endowment for
youth''; following line 4, by inserting the following:
``(f) On or before the 10th day of each month, the director of accounts and reports shall
transfer from the state general fund to the Kansas endowment for youth fund interest
earnings based on (1) the average daily balance of moneys in the children's initiatives fund
for the preceding month and (2) the net earnings rate of the pooled money investment
portfolio for the preceding month.'';
Also on page 3, in line 5, by striking all following ``(a)''; in line 6, by striking all before
``recommendations'', and inserting ``The Kansas children's cabinet established by K.S.A.
1998 Supp. 38-1901 and amendments thereto shall advise with and provide''; in line 8, by
striking all following the period; by striking all in lines 9 through 32; in line 33, by striking
``(c)'' and inserting ``(b)''; also in line 33, by striking ``authority'' and inserting ``cabinet'' in
line 37, by striking ``authority'' and inserting ``Kansas children's cabinet'';
On page 4, by striking all in lines 2 through 8, and inserting material to read as follows:
``(c) The Kansas children's cabinet shall review, assess and evaluate all uses of the
moneys in the children's initiatives fund. The Kansas children's cabinet shall study and shall
initiate studies, assessments and evaluations, by contract or otherwise, through institutions
of higher education and other appropriate research entities to identify best practices and to
measure and otherwise determine the efficiency and efficacy of practices that are utilized
in programs, projects, improvements, services and other purposes for which moneys are
allocated or appropriated from the children's initiatives fund. The costs of such reviews,
assessments and evaluations shall be paid from the children's initiatives accountability fund.
(d) There shall be conducted performance audits and other audit work conducted by
the legislative post auditor upon request by the Kansas children's cabinet in accordance with
this section. Such performance audits or other audit work shall be for the purposes of
identifying best practices and for measuring and otherwise determining the efficiency and
efficacy of practices that are utilized in programs, projects, improvements, services and other
purposes for which moneys are allocated or appropriated from the children's initiatives fund
and for such other matters as may be directed by the legislative post audit committee. The
auditor to conduct such performance audit or other audit work shall be specified in
accordance with K.S.A. 46-1122 and amendments thereto and 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
audit required pursuant to this subsection shall be conducted in accordance with generally
accepted governmental auditing standards. The post auditor shall compute the reasonably
anticipated cost of the audit work performed by a firm for such performance audit pursuant
to this subsection, subject to review and approval by the contract audit committee
established by K.S.A. 46-1120 and amendments thereto, and the Kansas children's cabinet
shall pay such cost from the children's initiatives accountability fund. If all or part of the
audit work for such performance audit or other audit work is performed by the division of
post audit and the division of post audit incurs costs in addition to those attributable to the
operations of the division of post audit in the performance of other duties and
responsibilities, the post auditor shall charge the Kansas children's cabinet for such
additional costs and the Kansas children's cabinet shall pay such charges from the children's
initiatives accountability fund. The payment of any such costs and any such charges shall be
a transaction between the division of post audit and the Kansas children's cabinet and such
transaction shall be settled in accordance with the provisions of K.S.A. 75-5516 and
amendments thereto. All moneys received by the division of post audit for such costs and
charges shall be credited to the audit services fund.
(e) There is hereby established in the state treasury the children's initiatives
accountability fund which shall be administered in accordance with this section and the
provisions of appropriation acts. The governor shall recommend and the legislature shall
provide for moneys to be credited annually to the children's initiatives accountability fund
by transfers or other provisions of appropriation acts.
(f) All moneys credited to the children's initiatives accountability fund shall be used for
the purposes of providing funding for assessment and evaluation of programs, projects,
improvements, services and other purposes for which moneys are allocated or appropriated
from the children's initiatives fund. All expenditures from the children's initiatives
accountability fund shall be made in accordance with appropriation acts upon warrants of
the director of accounts and reports issued pursuant to vouchers approved in the manner
prescribed by law.
(g) On or before the 10th day of each month, the director of accounts and reports shall
transfer from the state general fund to the Kansas endowment for youth fund interest
earnings based on (1) the average daily balance of moneys in the children's initiatives
accountability fund for the preceding month and (2) the net earnings rate of the pooled
money investment portfolio for the preceding month.'';
Also on page 4, in line 9, by striking ``children's trust fund'' and inserting ``Kansas
endowment for youth''; in line 19, by preceding ``board'', by inserting ``Kansas endowment
for youth''; in line 20, by striking all following ``have'', where it appears the first time, and
inserting ``at least five years of demonstrated experience in finance or investments,''; in line
21, by striking ``or'' and inserting ``in an investment management or analysis capacity, or'';
in line 26, by striking all following the period; by striking all in lines 27 through 30, and
inserting new material as follows:
``(c) (1) Except as provided by this paragraph and paragraph (2), all members of the
Kansas endowment for youth board of trustees as provided in subsection (a) shall serve four-
year terms, except that, of the members first appointed by the governor, two shall be
appointed for terms expiring on January 15, 2000, and two shall be appointed for terms
expiring on January 15, 2001, the member first appointed by the speaker of the house of
representatives shall be appointed for a term expiring on January 15, 2002, the member
first appointed by the minority leader of the house of representatives shall be appointed for
a term expiring on January 15, 2000, the member first appointed by the president of the
senate shall be appointed for a term expiring on January 15, 2002, and the member first
appointed by the minority leader of the senate shall be appointed for a term expiring on
January 15, 2001. The governor shall designate the term for which each of the members
first appointed by the governor 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 speaker of the house of representatives,
the minority leader of the house of representatives, the president of the senate or the
minority leader of the senate shall be appointed to fill the unexpired term of such member.
(2) Except as provided in K.S.A. 1998 Supp. 46-2601 and amendments thereto, 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 shall expire
on January 15 of the year in which such member's term expires. Except as provided in
paragraph (1), members shall be appointed for terms of four years and until their successors
are appointed and confirmed.
(d) No person shall serve on the children's fund board of trustees if such person has
knowingly acquired a substantial interest in any nonpublicly traded investment made with
moneys of the children's trust fund. Any such person who knowingly acquires such an
interest shall vacate such member's position on the board of trustees 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
received 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 that amount of compensation received by the individual or the
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
aggregate of $2,000 or more in the preceding calendar year.
(5) If an individual or individual's spouse has received a loan from or received financing
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 children's trust fund board of trustees shall fully disclose
any substantial interest that such person has in any publicly traded investment made with
moneys of the children's trust fund.
(e) No person who serves on the children's trust fund board of trustees shall be
employed for a period of two years commencing on the date the person no longer serves
on the board of trustees and ending two years after such date with any organization in which
moneys of the children's trust 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.'';
Also on page 4, in line 31, by striking ``(c)'' and inserting ``(f)''; also in line 31, preceding
``board'', by inserting ``Kansas endowment for youth''; in line 32, by striking ``children's trust
fund'' and inserting ``Kansas endowment for youth''; in line 35, by striking ``(d)'' and inserting
``(g)'' also in line 35, by striking ``children's trust fund'' and inserting ``Kansas endowment
for youth''; in line 40, by striking ``(e)'' and inserting ``(h) In accordance with the provisions
of appropriation acts, the state treasurer shall provide budgeting, purchasing, accounting,
staff assistance and other administrative services as may be required to assist the children's
trust fund board of trustees in the performance of the board's powers, duties and functions
as prescribed by this act.'';
Also on page 4, also in line 40, by striking ``children's trust fund'' and inserting ``Kansas
endowment for youth''; in line 41, following ``purchasing'', by inserting ``, accounting, staff
assistance''; by striking all in line 43;
On page 5, by striking all in lines 1 through 34, and inserting new material to read as
follows:
``Sec. 5. (a) The Kansas endowment for youth board of trustees is responsible for the
management and investment of the fund and shall discharge the board's duties with respect
to the fund solely in the interests of the beneficiaries of the fund for the exclusive purpose
of providing investment revenue for the purposes for which the moneys may be used 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.
(b) Moneys in the fund shall be invested and reinvested to achieve the investment
objective which is preservation of the fund to provide benefits to the beneficiaries of the
fund 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 development or social purposes or
objectives.
(c) In investing and reinvesting moneys in the fund and in acquiring, retaining, managing
and disposing of investments of the fund, the Kansas endowment for youth board of trustees
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.
(d) In the discharge of such management and investment responsibilities the Kansas
endowment for youth board of trustees may contract for the services of one or more
professional investment advisors or other consultants in the management and investment of
moneys in the fund and otherwise in the performance of the duties of the Kansas endowment
for youth board of trustees under this act. In addition, the Kansas endowment for youth
board of trustees may contract by agreement with the board of trustees of the Kansas public
employees retirement system to assist by advising, consulting, or investing the investment
assets of the fund or to otherwise assist the Kansas endowment for youth board of trustees
in the performance of duties under this act.
(e) The Kansas endowment for youth board of trustees shall require that each person
contracted with under subsection (d) to provide services, other than the board of trustees
of the Kansas public employees retirement system and the officers and employees thereof,
shall obtain commercial insurance which provides for errors and omissions coverage for
such person in an amount to be specified by the Kansas endowment for youth board of
trustees. The amount of such coverage specified by the Kansas endowment for youth board
of trustees 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 Kansas endowment for youth board of trustees
shall require a person contracted with under subsection (d) to provide services, other than
the board of trustees of the Kansas public employees retirement system and the officers
and employees thereof, 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 Kansas endowment for youth board of trustees, with
corporate surety authorized to do business in this state. Such persons contracted with the
Kansas endowment for youth board of trustees pursuant to subsection (d), including the
board of trustees of the Kansas public employees retirement system and the officers and
employees thereof, and any persons contracted with such persons to perform the functions
specified in subsection (b) shall be deemed to be fiduciary agents of the Kansas endowment
for youth board of trustees in the performance of contractual obligations.
(f) (1) Subject to the objective set forth in subsection (b) and the standards set forth in
subsection (c), the Kansas endowment for youth board of trustees shall formulate and adopt
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 be in writing and 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; and
(C) a requirement that all investment advisors, and any managers or others with similar
duties and responsibilities as investment advisors, shall immediately report all instances of
default on investments to the Kansas endowment for youth board of trustees and provide
such board of trustees with recommendations and options, including, but not limited to,
curing the default or withdrawal from the investment.
(2) The Kansas endowment for youth board of trustees shall review such policies and
objectives, make changes considered necessary or desirable and readopt such policies and
objectives on an annual basis.
(g) (1) Except as provided in subsection (d) and this subsection, the custody of money
and securities of the fund shall remain in the custody of the state treasurer, except that the
Kansas endowment for youth board of trustees 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.
(2) The state treasurer and the Kansas endowment for youth board of trustees 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 shall pay such moneys when so collected
into the state treasury to the credit of the fund.
(3) The principal and interest or other income or the proceeds of sale of securities as
provided in paragraph (1) of this subsection shall be reported to the state treasurer and the
Kansas endowment for youth board of trustees and credited to the fund.
(h) All interest or other income of the investments of the moneys in the fund, after
payment of any management fees, shall be considered income of the fund and shall be
deposited in the state treasury to the credit of the fund.
(i) As used in this section,
(1) ``fiduciary'' means a person who, with respect to the fund, is a person who:
(A) Exercises any discretionary authority with respect to administration of the fund;
(B) exercises any authority to invest or manage assets of the fund or has any authority
or responsibility to do so;
(C) provides investment advise for a fee or other direct or indirect compensation with
respect to the assets of the fund or has any authority or responsibility to do so;
(D) provides actuarial, accounting, auditing, consulting, legal or other professional
services for a fee or other direct or indirect compensation with respect to the fund or has
any authority or responsibility to do so; or
(E) is a member of the Kansas endowment for youth board of trustees.
(2) ``Fund'' means the Kansas endowment for youth fund and the family and children
endowment account of the family and children investment fund.
(3) With respect to the investment of moneys in the Kansas endowment for youth fund,
``purposes for which the moneys may be used'' means the purposes for which the moneys
in the children's initiatives fund may be used, as provided in section 2 and amendments
thereto, and ``beneficiaries of the fund'' means the beneficiaries of the children's initiatives
fund, as provided by section 2 and amendments thereto.
(4) With respect to the investment of moneys in the family and children endowment
account of the family and children investment fund, ``purposes for which the moneys may
be used'' means the purposes for which the moneys in the family and children trust account
of the family and children investment fund may be used, as provided in subsection (c) of
K.S.A. 1998 Supp. 38-1808, and amendments thereto, and ``beneficiaries of the fund'' means
the beneficiaries of the family and children trust account of the family and children
investment fund may be used, as provided in subsection (c) of K.S.A. 1998 Supp. 38-1808,
and amendments thereto.'';
Also on page 5, in line 35, by striking ``children's trust fund'' and inserting ``Kansas
endowment for youth''; in line 36, by striking ``children's''; in line 37, by striking ``trust'' and
inserting ``Kansas endowment for youth''; in line 40, by striking ``children's trust fund'' and
inserting ``Kansas endowment for youth'';
On page 6, in line 2, by striking ``chil-''; in line 3, by striking ``dren's trust'' and inserting
``Kansas endowment for youth''; in line 8, by striking all after ``system''; by striking all in
lines 9 and 10; in line 11, by striking ``ing'' and inserting ``may provide, by contractual
agreement with the Kansas endowment for youth board of trustees,''; also in line 11,
following ``consultation'', by inserting ``, investment management''; in line 12, by striking all
following ``fund''; by striking all in lines 13 through 16; in line 17, by striking all before the
period and inserting ``through the professional investment staff of the board of trustees of
the Kansas public employees retirement system or through fiduciaries under contract with
the board of trustees of the Kansas public employees retirement system. To the extent
practicable and consistent with its duties and with its fiduciary and other responsibilities to
the Kansas public employees retirement system, the board of trustees of the Kansas public
employees retirement system shall cooperate with and provide such other advice and
assistance to the Kansas endowment for youth board of trustees in the performance of its
powers, duties and functions under this act''; following line 17, by inserting new material to
read as follows:
``Sec. 8. K.S.A. 1998 Supp. 20-367 is hereby amended to read as follows: 20-367. Of
the remittance of the balance of docket fees received monthly by the state treasurer from
clerks of the district court pursuant to subsection (f) of K.S.A. 20-362, and amendments
thereto, the state treasurer shall deposit and credit to the access to justice fund, a sum equal
to 6.94% of the remittances of docket fees; to the juvenile detention facilities fund, a sum
equal to 4.45% of the remittances of docket fees; to the judicial branch education fund, the
state treasurer shall deposit and credit a sum equal to 3.42% of the remittances of docket
fees; to the crime victims assistance fund, the state treasurer shall deposit and credit a sum
equal to .92% of the remittances of the docket fees; to the protection from abuse fund, the
state treasurer shall deposit and credit a sum equal to 2.75% of the remittances of the docket
fees; to the judiciary technology fund, the state treasurer shall deposit and credit a sum
equal to 6.93% of the remittances of docket fees; to the dispute resolution fund, the state
treasurer shall deposit and credit a sum equal to .57% of the remittances of docket fees; to
the Kansas endowment for youthjuvenile delinquency prevention trust fund, the state
treasurer shall deposit and credit a sum equal to 2.03% of the remittances of docket fees;
and to the permanent families account in the family and children investment fund, the state
treasurer shall deposit and credit a sum equal to .33% of the remittances of docket fees.
The balance remaining of the remittances of docket fees shall be deposited and credited to
the state general fund.
Sec. 9. K.S.A. 1998 Supp. 38-1808 is hereby amended to read as follows: 38-1808. (a)
There is hereby established in the state treasury the family and children investment fund. On and after July 1, 1997, suchThe family and children investment fund shall be
administered as provided in this section.
(b) There shall be credited to the family and children investment fund appropriations,
gifts, grants, contributions, matching funds and participant payments.
(c) (1) There is hereby created the family and children trust account in the family and
children investment fund. The secretary of social and rehabilitation services shall administer thisthe family and children trust account.
(2) Moneys credited to the family and children trust account shall be used for the
following purposes: (A) Matching federal moneys to purchase services relating to
community-based programs for the broad range of child abuse and neglect prevention
activities; (B) providing start-up or expansion grants for community-based prevention
projects for the broad range of child abuse and neglect prevention activities; (C) studying
and evaluating community-based prevention projects for the broad range of child abuse and
neglect prevention activities; (D) preparing, publishing, purchasing and disseminating
educational material dealing with the broad range of child abuse and neglect prevention
activities; and (E) payment of the administrative costs of the family and children trust
account and of that portion of the advisory committee on children and familiesKansas children's cabinet, established pursuant to K.S.A. 1998 Supp. 38-1901, and amendments
thereto, which are attributable to the family and children trust account, and that portion of the administrative costs of the Kansas endowment for youth board of trustees, established by K.S.A. 1998 Supp. 38-1901, and amendments thereto, which are attributable to the family and children endowment account of the family and children investment fund. No moneys
in the family and children trust account shall be used for the purpose of providing services
for the voluntary termination of pregnancy.
(3) Expenditures from the family and children trust account shall be subject to the
approval of the advisory committee on children and familiesKansas children's cabinet
established pursuant to K.S.A. 1998 Supp. 38-1901, and amendments thereto. All
expenditures from the family and children trust account shall be made in accordance with
appropriation acts upon warrants of the director of accounts and reports issued pursuant to
vouchers approved by the secretary of social and rehabilitation services or a person
designated by the secretary.
(d) (1) There is hereby created the permanent families account in the family and
children investment fund. The judicial administrator of the courts shall administer this
account.
(2) Moneys credited to the permanent families account shall be used for the following
purposes: (A) Not more than 12% of the amount credited to the permanent families account
during the fiscal year may be used to provide technical assistance to district courts or local
groups wanting to establish a local citizen review board or a court-appointed special advocate
program, including but not limited to such staff as necessary to provide such assistance, and
to provide services necessary for the administration of such board or program, including but
not limited to grants administration, accounting, data collection, report writing and training
of local citizen review board staff; (B) grants to court-appointed special advocate programs,
upon application approved by the administrative judge of the judicial district where the
program is located; and (C) grants to district courts, upon application of the administrative
judge of the judicial district, for expenses of establishment, operation and evaluation of local
citizen review boards in the judicial district, including costs of: (i) Employing local citizen
review board coordinators and clerical staff; (ii) telephone, photocopying and office
equipment and supplies for which there are shown to be no local funds available; (iii) mileage
of staff and board members; and (iv) training staff and board members.
(3) In addition to the other duties and powers provided by law, in administering the
permanent families account, the judicial administrator shall:
(A) Accept and receive grants, loans, gifts or donations from any public or private entity
in support of programs administered by the judicial administrator and assist in the
development of supplemental funding sources for local and state programs;
(B) consider applications for and make such grants from the permanent families account
as authorized by law; and
(C) receive reports from local citizen review boards established pursuant to K.S.A. 38-
1812, and amendments thereto, regarding the status of children under the supervision of
the district courts and regarding systemic barriers to permanence for children, assure that
appropriate data is maintained regularly and compiled at least once a year by such boards
on all cases reviewed and assure that the effectiveness of such boards is evaluated on an
ongoing basis, using, where possible, random selection of local citizen review boards and
cases for the evaluation and including client outcome data to determine effectiveness.
(4) All expenditures from the permanent families account shall be made in accordance
with appropriation acts upon warrants of the director of accounts and reports issued pursuant
to vouchers approved by the judicial administrator or a person designated by the judicial
administrator.
(e) The family and children endowment account of the family and children investment fund shall constitute and shall be administered as an endowment for the purposes for which expenditures may be made from the family and children trust account of the family and children investment fund. The family and children endowment account of the family and children investment fund shall be invested by the Kansas endowment for youth board of trustees established by section 4, and amendments thereto. All interest or other income of the investments of the moneys in the family and children trust account of the family and children investment fund, after payment of any management fees, shall be considered income of the family and children trust account of the family and children investment fund and shall be deposited in the state treasury to the credit of the family and children trust account of the family and children investment fund.
(f) On or before the 10th of each month, the director of accounts and reports shall
transfer from the state general fund to the family and children investment fund interest
earnings based on:
(1) The average daily balance of moneys in the family and children investment fund for
the preceding month, excluding all amounts credited to the family and children endowment account of the family and children investment fund; and
(2) the net earnings rate of the pooled money investment portfolio for the preceding
month.
Sec. 10. K.S.A. 1998 Supp. 38-1901 is hereby amended to read as follows: 38-1901. On
and after July 1, 1997the effective date of this act:
(a) The advisory committee on children and families is hereby createdredesignated and shall be known and referred to as the Kansas children's cabinet.
(b) The advisory committee on children and familiesKansas children's cabinet shall
consist of nine15 members as follows: (1) The secretary of health and environment, or the secretary's designee; (2) the secretary of social and rehabilitation services, or the secretary's designee; (3) the secretary of human resourcesa member of the state board of regents selected by the state board of regents, or such member's designee; (4) the commissioner of education, or the commissioner's designee; (5) the commissioner of juvenile justice, or the commissioner's designee; (6) a member of the Kansas supreme court selected by the Kansas supreme court, or such member's designee; and (7) threefive members of the public who
are interested in and knowledgeable about the needs of children and families shall be
appointed by the governor, except that the members appointed by the governor to the advisory committee on children and families created by executive order 97-1 on January 9, 1997, shall be deemed members appointed by the governor of the advisory committee on children and families established by this sectionwhich, subject to the provisions of subsection (e), may include persons who are children's advocates, members of organizations with experience in programs that benefit children or other individuals who have experience with children's programs and services; (7) one person appointed by the speaker of the house of representatives; (8) one person appointed by the minority leader of the house of representatives; (9) one person appointed by the president of the senate; and (10) one person appointed by the minority leader of the senate. The members designated by clauses (1), (2), (3), (4), (5) and (6) of this subsection shall be nonvoting members of the Kansas children's cabinet. All other members shall be voting members.
(c) (1) Except as provided in paragraph (2) of this subsection, the members of the advisory committee on children and familiesKansas children's cabinet appointed by the
governor, speaker, president and minority leaders shall serve at the pleasure of the governor for terms of four years and until their successors are appointed and qualified. The governor
shall appoint a chairperson of the committee andfrom among the members appointed by the governor. The chairperson shall serve in such office throughout such member's current term of office and until a successor is appointed and qualified. The members of the committeeKansas children's cabinet may elect any additional officers from among its
members necessary to carry out the duties and functions of the committeeKansas children's cabinet.
(2) Of the members first appointed by the governor, two shall be appointed for terms of two years, two shall be appointed for terms of three years and the member selected by the governor to be the chairperson shall be appointed for a term of four years. The member first appointed by the speaker of the house of representatives shall be appointed for a term of one year, the member first appointed by the minority leader of the house of representatives shall be appointed for a term of two years, the member first appointed by the president of the senate shall be appointed for a term of three years and the member first appointed by the minority leader of the senate shall be appointed for a term of four years. The governor shall designate the term for which each of the members first appointed by the governor shall serve.
(3) All members appointed to fill vacancies in the membership of the Kansas children's cabinet and all members appointed to succeed members appointed to membership on the Kansas children's cabinet 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 Kansas children's cabinet appointed by the governor, the speaker of the house of representatives, the minority leader of the house of representatives, the president of the senate or the minority leader of the senate shall be appointed to fill the unexpired term of such member.
(d) Not more than three members of the Kansas children's cabinet appointed by the governor under subsection (b)(7) shall be members of the same political party. No member of the Kansas children's cabinet shall be a member of the Kansas legislature.
(e) (1) No person shall serve on the Kansas children's cabinet if such person has knowingly acquired a substantial interest in any business. Any such person who knowingly acquires such an interest shall vacate such member's position on the Kansas children's cabinet.
(2) For purposes of this subsection, ``substantial interest'' means any of the following:
(A) 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.
(B) If an individual or an individual's spouse, either individually or collectively, has received 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.
(C) 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 that amount of compensation received by the individual or the individual's spouse.
(D) 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 aggregate of $2,000 or more in the preceding calendar year.
(3) As used in this subsection, ``client or customer'' means a business or combination of businesses.
(4) As used in this subsection, ``business'' means any entity which is eligible to receive funds from the children's initiatives fund, as provided in section 2 and amendments thereto or from the family and children trust account of the family and children investment fund, as provided in K.S.A. 38-1808 and amendments thereto.
(d)(f) The advisory committee on children and familiesKansas children's cabinet shall
meet upon the call of the chairperson as necessary to carry out the duties and functions of
the committeeKansas children's cabinet. A quorum of the Kansas children's cabinet shall be five voting members.
(e)(g) The advisory committee on children and familiesKansas children's cabinet shall
have and perform the following functions:
(1) Assist the governor in developing and implementing a coordinated, comprehensive
service delivery system to serve the children and families of Kansas;
(2) identify barriers to service and gaps in service due to strict definitions of boundaries
between departments and agencies;
(3) facilitate interagency and interdepartmental cooperation toward the common goal
of serving children and families;
(4) investigate and identify methodologies for the combining of funds across
departmental boundaries to better serve children and families;
(5) propose actions needed to achieve coordination of funding and services across
departmental lines; and
(6) encourage and facilitate joint planning and coordination between the public and
private sectors to better serve the needs of children and families; and
(7) perform the duties and functions prescribed by section 3, and amendments thereto.
(f)(h) Members of the advisory committee on children and familiesKansas children's cabinet shall not be paid compensation, but shall receive subsistence allowances, mileage
and other expenses as provided by K.S.A. 75-3223, and amendments thereto. The
subsistence allowances, mileage and other expenses as provided in K.S.A. 75-3223 and
amendments thereto shall be paid from available appropriations of the department of social
and rehabilitation services except that expenses of members who are employed by a state
agency shall be reimbursed by that state agency.
Sec. 11. K.S.A. 75-7021 is hereby amended to read as follows: 75-7021. (a) There is
hereby created in the state treasury the Kansas endowment for youthjuvenile delinquency prevention trust fund. Money credited to the Kansas juvenile delinquency prevention trust
fund pursuant to K.S.A. 20-367 and amendments thereto or by any other lawful means shall
be used solely for the purpose of making grants to further the purpose of juvenile justice
reform, including rational prevention programs and programs for treatment and
rehabilitation of juveniles and to further the partnership between state and local
communities. Such treatment and rehabilitation programs should aim to combine
accountability and sanctions with increasingly intensive treatment and rehabilitation services
with an aim to provide greater public safety and provide intervention that will be uniform
and consistent.
(b) All expenditures from the Kansas endowment for youthjuvenile delinquency prevention trust fund shall be made in accordance with appropriations acts upon warrants
of the director of accounts and reports issued pursuant to vouchers approved by the
commissioner of juvenile justice or by a person or persons designated by the commissioner.
(c) The commissioner of juvenile justice may apply for, receive and accept money from
any source for the purposes for which money in the Kansas endowment for youthjuvenile delinquency prevention trust fund may be expended. Upon receipt of any such money, the
commissioner shall remit the entire amount at least monthly to the state treasurer, who shall
deposit it in the state treasury and credit it to the Kansas endowment for youthjuvenile delinquency prevention trust fund.
(d) Grants made to programs pursuant to this section shall be based on the number of
persons to be served and such other requirements as may be established by the Kansas
youth authority in guidelines established and promulgated to regulate grants made under
authority of this section. The guidelines may include requirements for grant applications,
organizational characteristics, reporting and auditing criteria and such other standards for
eligibility and accountability as are deemed advisable by the Kansas youth authority.
(e) On or before the 10th of each month, the director of accounts and reports shall
transfer from the state general fund to the Kansas endowment for youthjuvenile delinquency prevention trust fund interest earnings based on:
(1) The average daily balance of moneys in the Kansas endowment for youthjuvenile delinquency prevention trust fund for the preceding month; and
(2) the net earnings rate of the pooled money investment portfolio for the preceding
month.
(f) On and after the effective date of this act, the Kansas endowment for youth trust fund created by this section prior to amendment by this act is hereby redesignated as the Kansas juvenile delinquency prevention trust fund. On and after the effective date of this act, whenever the Kansas endowment for youth trust fund created by this section prior to amendment by this act, or words of like effect, is referred to or designated by a statute, contract or other document such reference or designation shall be deemed to apply to the Kansas juvenile delinquency prevention trust fund.'';
And by renumbering sections accordingly;
Also on page 6, in line 18, preceding ``K.S.A'', by inserting ``K.S.A. 75-7021 and''; also in
line 18, by striking ``38-2008 is'' and inserting ``20-367, 38-1808, 38-1901 and 38-2008 are'';
in line 20, by striking ``Kansas register'' and inserting ``statute book'';
On page 1, in the title, in line 9, following ``the'', by inserting ``disposition of certain
moneys for the benefit of children'' in line 10, by striking ``children's trust fund and the
children's initiatives'' and inserting ``Kansas endowment for youth fund, the children's
initiatives fund and the children's initiatives accountability''; in line 11, by striking ``authority
and the children's''; in line 12, by striking ``trust fund'' by inserting ``cabinet and the Kansas
endowment for youth''; in line 14, preceding ``also'', by inserting ``amending K.S.A. 75-7021
and K.S.A. 1998 Supp. 20-367, 38-1808 and 38-1901 and repealing the existing sections'';
and the bill be passed as amended.
REPORT ON ENGROSSED BILLS HB 2410, 2519 reported correctly engrossed April 7, 1999.
REPORT ON ENROLLED BILLS HB 2035, 2060, 2136, 2380, 2549 reported correctly enrolled, properly signed and
presented to the governor on April 2, 1999.
Also, HB 2215 reported correctly enrolled, properly signed and presented to the governor
on April 7, 1999.
REPORT ON ENROLLED RESOLUTIONS HCR 5017 reported correctly enrolled and properly signed on April 2, 1999.
READING AND CORRECTION OF THE JOURNAL
In the Journal, on page 687, under Reports of Standing Committees, under Committee
on Appropriations, HB 2215 should be deleted and HB 2115 should be inserted.
On motion of Rep. Glasscock, the House adjourned until 9:00 a.m., Thursday, April 8,
1999.