January 14, 1999

Journal of the Senate

FOURTH DAY ______

Senate Chamber, Topeka, Kansas

Thursday, January 14, 1999--2:30 p.m.

The Senate was called to order by President Dick Bond.

The roll was called with thirty-eight senators present.

Senators Downey and Hardenburger were excused.

Invocation by Chaplain Fred S. Hollomon:

Heavenly Father,

I never cease to be amazed

At those who have the nerve

To vilify the people

In the Senate where I serve.

Some months ago a columnist

Called them bums and beggars.

He bothered not to specify,

He just lumped them all together.

No one enjoys good-natured razzing

More than I do most of the time,

But I hear so many people

It seems to me have crossed the line.

I realize the Senators

By necessity

Develop skins thick enough

To withstand adversity.

But they are not the only ones

Whom verbal abuse affects;

It really hurts the families

Of the people we elect.

We'd all be better off if those

Who shake their fists and swear,

Would shut their mouths, get on their knees

And lift us all in prayer!

I Pray in the Name of Christ,

AMEN

INTRODUCTION OF BILLS AND CONCURRENT RESOLUTIONS
The following bills and concurrent resolutions were introduced and read by title:

SB 43, An act relating to property taxation; concerning certain refunds relating to resi-
dential property; amending K.S.A. 79-4504 and repealing the existing section, by Committee
on Assessment and Taxation.

SB 44, An act relating to income taxation; concerning the credit therefrom for property
tax paid upon certain commercial and industrial machinery and equipment; amending K.S.A.
1998 Supp. 79-32,206 and repealing the existing section, by Committee on Assessment and
Taxation.

SB 45, An act relating to income, taxation; enhancing the adoption expense credit there-
from; amending K.S.A. 79-32,202 and repealing the existing section, by Committee on As-
sessment and Taxation.

SB 46, An act relating to severance taxation; exempting coal and oil production therefrom;
amending K.S.A. 1998 Supp. 79-4217 and repealing the existing section, by Committee on
Assessment and Taxation.

SB 47, An act relating to taxation; concerning collection procedures of the department
of revenue; amending K.S.A. 79-2971, 79-3233, 79-3233a, 79-3233b, 79-3233g, 79-3233h,
79-3233i, 79-3618 and 79-3643 and repealing the existing sections; also repealing K.S.A. 75-
5149, 75-5150, 79-3233d and 79-3233f, by Committee on Assessment and Taxation.

SB 48, An act concerning insurance; relating to reinsurance; amending K.S.A. 40-3634
and K.S.A. 1998 Supp. 40-221a and repealing the existing sections, by Committee on Fi-
nancial Institutions and Insurance.

SB 49, An act regulating traffic; concerning aggressive driving; amending K.S.A. 1998
Supp. 8-2,128 and repealing the existing section, by Committee on Transportation and
Tourism.

SB 50, An act amending the safety belt use act; concerning violations thereof; amending
K.S.A. 8-2503 and 8-2504 and repealing the existing sections, by Committee on Transpor-
tation and Tourism.

SB 51, An act relating to motor vehicles; concerning certain distinctive license plates;
amending K.S.A. 8-161 and 8-1,139 and K.S.A. 1998 Supp. 8-177c, 8-1,140, 8-1,142, 8-
1,145 and 8-1,146 and repealing the existing sections, by Committee on Transportation and
Tourism.

SB 52, An act concerning motor vehicles; providing for the issuance of children's trust
fund license plates; amending K.S.A. 1998 Supp. 8-1,141 and repealing the existing section,
by Committee on Transportation and Tourism.

SB 53, An act concerning school districts; affecting the core academic areas subject to
assessment under the school performance accreditation system; amending K.S.A. 1998
Supp. 72-6439 and repealing the existing section, by Committee on Education.

SB 54, An act concerning access to television services; providing restrictions on certain
premises owners relating thereto, by Committee on Federal and State Affairs.

SB 55, An act concerning the legislature; relating to salaries, compensation and benefits;
amending K.S.A. 37-114, 37-115, 46-134a, 46-146a, 46-161, 46-1104, 46-1209, 46-1801, 46-
2401, 74-4995, 75-3718a and 77-436 and K.S.A. 1998 Supp. 40-3403b, 46-137a, 46-2201,
46-2502 and 46-2701 and repealing the existing sections; also repealing K.S.A. 1998 Supp.
46-2201a, by Committee on Federal and State Affairs.

SB 56, An act concerning the university of Kansas hospital authority; relating to members
thereof; amending K.S.A. 1998 Supp. 76-3304 and repealing the existing section, by Com-
mittee on Federal and State Affairs.

SB 57, An act designating October 14 of each year as Dwight D. Eisenhower Day in the
state of Kansas, by Committee on Federal and State Affairs.

SB 58, An act relating to highways; concerning the state system; amending K.S.A. 1998
Supp. 68-406 and repealing the existing section, by Committee on Federal and State Affairs.

SENATE CONCURRENT RESOLUTION No. 1606--

By Committee on Public Health and Welfare A CONCURRENT RESOLUTION requesting the Governor of the state of Kansas to
identify funds available for training and retraining of long-term care staff. WHEREAS, The Task Force on Long-Term Care Services has found it is a goal of state
and federal laws governing nurse aide programs to improve the quality of care provided in
adult care homes by ensuring that each certified nurse aide has the training, practical knowl-
edge and skills to care for such residents; and

WHEREAS, Nurses, medication aides and administrators of long-term adult care homes
are required to complete continuing education requirements to continue practicing in their
licensed or certified career; and

WHEREAS, Certified nurse aides are the heart of this care delivery system representing
the link between the resident, the professional nurse and physician; and

WHEREAS, Certified nurse aide jobs are becoming more difficult and stressful as more
residents suffer from dementia and are more acutely ill while the budgets of most long-
term adult care facilities are tightening; and

WHEREAS, The high stress of the certified nurse aide's job has resulted in a high turn-
over rate and a shortage of such employees; and

WHEREAS, Long-term residents of adult care homes appear to be increasingly frail and
cognitively impaired requiring tremendous amounts of physical care by the certified nurse
aides; and

WHEREAS, Certified nurse aides would benefit from additional periodic formal training
on the subjects of stress, effective communication with other staff members and improve-
ment in the care of residents with increasingly demanding care needs;

Be it resolved by the Senate of the State of Kansas, the House of Representatives concurring
therein: That, in recognition of the facts contained in the preamble of this concurrent
resolution, the Legislature of the State of Kansas requests the Governor of the State of
Kansas to ask the various secretaries of state of the executive branch to examine K.S.A. 74-
5065 through 74-5067, and amendments thereto, any other statutes and rules and regula-
tions and to identify funds which may be available for training, retraining or continuing
education of long-term care staff of adult care homes as defined in K.S.A. 39-923, and
amendments thereto.

Be it further resolved: That the Legislature hereby requests that the Governor report
the findings of such examination to the board of adult care home administrators, the Sec-
retary of Health and Environment and the Legislature during the 2000 legislative session.

Be it further resolved: That the Secretary of State be directed to send enrolled copies
of this resolution to the Governor of the State of Kansas.

SENATE CONCURRENT RESOLUTION No. 1607--

By Committee on Federal and State Affairs A CONCURRENT RESOLUTION encouraging the observance of October 14 of each
year as Dwight D. Eisenhower Day in the state of Kansas. WHEREAS, Dwight David Eisenhower, reared in Kansas, was the Supreme Com-
mander who led the Allied Expeditionary Forces to Victory in World War II; and

WHEREAS, General Eisenhower, whose home was Abilene, Kansas, served as President
of the United States of America from 1953 to 1961; and

WHEREAS, During his distinguished career as General of the Army and as President,
Dwight D. Eisenhower significantly and positively influenced the course of history; and

WHEREAS, The recognition of Dwight D. Eisenhower's achievements can serve as in-
spiration to the young people of Kansas and to all citizens of Kansas and of the United
States; and

WHEREAS, The state of Kansas desires to preserve and honor the achievements of
Dwight D. Eisenhower and to keep his inspiration and legacy alive: Now, therefore,

Be it resolved by the Senate of the State of Kansas, the House of Representatives concurring
therein: That the Legislature encourages the citizens of Kansas to participate in the ob-
servance of October 14 of each year as Dwight D. Eisenhower Day in the State of Kansas;
and

Be it further resolved: That the State Board of Education is directed to work in concert
with the Dwight D. Eisenhower Library and the Eisenhower Foundation to develop pro-
grams and educational opportunities for the young people of Kansas concerning the life and
times of Dwight D. Eisenhower; and

Be it further resolved: That the Division of Travel and Tourism of the Department of
Commerce and Housing shall assist the Dwight D. Eisenhower Library and the Eisenhower
Foundation to promote the Eisenhower legacy and the Eisenhower Library and Museum
as an international cultural and educational center; and

Be it further resolved: That the Secretary of State be directed to send enrolled copies
of this resolution to the State Board of Education, the Commissioner of Education, the
Secretary of Commerce and Housing and to the Dwight D. Eisenhower Library and Eisen-
hower Foundation.

REFERENCE OF BILLS AND CONCURRENT RESOLUTIONS
The following resolution was referred to Committee as indicated:

Agriculture: SCR 1605.

COMMUNICATIONS FROM STATE OFFICERS
DEPARTMENT OF ADMINISTRATION January 12, 1999 Dan Stanley, Secretary of Administration, as required in KSA 75-37,110, submitted a
report on activities of the Employee Award Board.

STATE OF KANSAS JUVENILE JUSTICE AUTHORITY Albert Murray, Commissioner, submitted the first annual report on Blueprint for the
Future for fiscal year 1998.

THE KANSAS SUPREME COURT Kansas Judicial Branch The Office of Judicial Administration submitted the 1998 annual report.

DEPARTMENT OF HEALTH & ENVIRONMENT Bureau of Waste Management Division of Environment The 1998 annual report on The Kansas Household Hazardous Waste Program was
submitted.

The President announced the above reports are on file in the office of the Secretary of
the Senate and are available for review at any time.

WITHDRAWN FROM CONSIDERATION

Upon unanimous consent, the appointment of Matthew Hickam to Long-Term Care
Ombudsmen, was removed from the Calendar under the heading of ``Consideration of
Appointments'' and referred to the Committee on Public Health and Welfare.

REPORTS OF STANDING COMMITTEES
Committee on Assessment and Taxation recommends SB 2 be amended on page 1, in
line 36, by striking the first ``or'' and inserting a comma; also in line 36, before ``county'' by
inserting ``or Reno''; by striking all after line 40, and inserting the following:

``Sec. 2. K.S.A. 1998 Supp. 12-187 is hereby amended to read as follows: 12-187. (a)
(1) No city shall impose a retailers' sales tax under the provisions of this act without the
governing body of such city having first submitted such proposition to and having received
the approval of a majority of the electors of the city voting thereon at an election called and
held therefor. The governing body of any city may submit the question of imposing a re-
tailers' sales tax and the governing body shall be required to submit the question upon
submission of a petition signed by electors of such city equal in number to not less than
10% of the electors of such city.

(2) The governing body of any class B city located in any county which does not impose
a countywide retailers' sales tax pursuant to paragraph (5) of subsection (b) may submit the
question of imposing a retailers' sales tax at the rate of .25%, .5%, .75% or 1% and pledging
the revenue received therefrom for the purpose of financing the provision of health care
services, as enumerated in the question, to the electors at an election called and held
thereon. The tax imposed pursuant to this paragraph shall be deemed to be in addition to
the rate limitations prescribed in K.S.A. 12-189, and amendments thereto. As used in this
paragraph, health care services shall include but not be limited to the following: Local health
departments, city, county or district hospitals, city or county nursing homes, preventive
health care services including immunizations, prenatal care and the postponement of entry
into nursing homes by home health care services, mental health services, indigent health
care, physician or health care worker recruitment, health education, emergency medical
services, rural health clinics, integration of health care services, home health services and
rural health networks.

(b) (1) The board of county commissioners of any county may submit the question of
imposing a countywide retailers' sales tax to the electors at an election called and held
thereon, and any such board shall be required to submit the question upon submission of
a petition signed by electors of such county equal in number to not less than 10% of the
electors of such county who voted at the last preceding general election for the office of
secretary of state, or upon receiving resolutions requesting such an election passed by not
less than 2/3 of the membership of the governing body of each of one or more cities within
such county which contains a population of not less than 25% of the entire population of
the county, or upon receiving resolutions requesting such an election passed by 2/3 of the
membership of the governing body of each of one or more taxing subdivisions within such
county which levy not less than 25% of the property taxes levied by all taxing subdivisions
within the county.

(2) The board of county commissioners of Atchison, Barton, Butler, Cowley, Cherokee,
Crawford, Ford, Jefferson, Lyon, Montgomery, Ottawa, Riley, Saline, Seward and Wyan-
dotte counties may submit the question of imposing a countywide retailers' sales tax and
pledging the revenue received therefrom for the purpose of financing the construction or
remodeling of a courthouse, jail, law enforcement center facility or other county adminis-
trative facility, to the electors at an election called and held thereon. The tax imposed
pursuant to this paragraph shall expire when sales tax sufficient to pay all of the costs
incurred in the financing of such facility has been collected by retailers as determined by
the secretary of revenue. Nothing in this paragraph shall be construed to allow the rate of
tax imposed by Butler, Cowley, Lyon, Montgomery or Riley county pursuant to this para-
graph to exceed or be imposed at any rate other than the rates prescribed in K.S.A. 12-189,
and amendments thereto.

(3) (A) Except as otherwise provided in this paragraph, the result of the election held
on November 8, 1988, on the question submitted by the board of county commissioners of
Jackson county for the purpose of increasing its countywide retailers' sales tax by 1% is
hereby declared valid, and the revenue received therefrom by the county shall be expended
solely for the purpose of financing the Banner Creek reservoir project. The tax imposed
pursuant to this paragraph shall take effect on the effective date of this act and shall expire
not later than five years after such date.

(B) The result of the election held on November 8, 1994, on the question submitted by
the board of county commissioners of Ottawa county for the purpose of increasing its coun-
tywide retailers' sales tax by 1% is hereby declared valid, and the revenue received therefrom
by the county shall be expended solely for the purpose of financing the erection, construction
and furnishing of a law enforcement center and jail facility.

(4) The board of county commissioners of Finney and Ford counties may submit the
question of imposing a countywide retailers' sales tax at the rate of .25% and pledging the
revenue received therefrom for the purpose of financing all or any portion of the cost to be
paid by Finney or Ford county for construction of highway projects identified as system
enhancements under the provisions of paragraph (5) of subsection (b) of K.S.A. 68-2314,
and amendments thereto, to the electors at an election called and held thereon. Such elec-
tion shall be called and held in the manner provided by the general bond law. The tax
imposed pursuant to this paragraph shall expire upon the payment of all costs authorized
pursuant to this paragraph in the financing of such highway projects. Nothing in this para-
graph shall be construed to allow the rate of tax imposed by Finney or Ford county pursuant
to this paragraph to exceed the maximum rate prescribed in K.S.A. 12-189, and amendments
thereto. If any funds remain upon the payment of all costs authorized pursuant to this
paragraph in the financing of such highway projects in Finney county, the state treasurer
shall remit such funds to the treasurer of Finney county and upon receipt of such moneys
shall be deposited to the credit of the county road and bridge fund. If any funds remain
upon the payment of all costs authorized pursuant to this paragraph in the financing of such
highway projects in Ford county, the state treasurer shall remit such funds to the treasurer
of Ford county and upon receipt of such moneys shall be deposited to the credit of the
county road and bridge fund.

(5) The board of county commissioners of any county may submit the question of im-
posing a retailers' sales tax at the rate of .25%, .5%, .75% or 1% and pledging the revenue
received therefrom for the purpose of financing the provision of health care services, as
enumerated in the question, to the electors at an election called and held thereon. Whenever
any county imposes a tax pursuant to this paragraph, any tax imposed pursuant to paragraph
(2) of subsection (a) by any city located in such county shall expire upon the effective date
of the imposition of the countywide tax, and thereafter the state treasurer shall remit to
each such city that portion of the countywide tax revenue collected by retailers within such
city as certified by the director of taxation. The tax imposed pursuant to this paragraph shall
be deemed to be in addition to the rate limitations prescribed in K.S.A. 12-189, and amend-
ments thereto. As used in this paragraph, health care services shall include but not be limited
to the following: Local health departments, city or county hospitals, city or county nursing
homes, preventive health care services including immunizations, prenatal care and the post-
ponement of entry into nursing homes by home care services, mental health services, in-
digent health care, physician or health care worker recruitment, health education, emer-
gency medical services, rural health clinics, integration of health care services, home health
services and rural health networks.

(6) The board of county commissioners of Allen county may submit the question of
imposing a countywide retailers' sales tax at the rate of .5% and pledging the revenue
received therefrom for the purpose of financing the costs of operation and construction of
a solid waste disposal area or the modification of an existing landfill to comply with federal
regulations to the electors at an election called and held thereon. The tax imposed pursuant
to this paragraph shall expire upon the payment of all costs incurred in the financing of the
project undertaken. Nothing in this paragraph shall be construed to allow the rate of tax
imposed by Allen county pursuant to this paragraph to exceed or be imposed at any rate
other than the rates prescribed in K.S.A. 12-189 and amendments thereto.

(7) The board of county commissioners of Dickinson county may submit the question
of imposing a countywide retailers' sales tax at the rate of .50% and pledging the revenue
received therefrom for the purpose of financing the costs of roadway construction and
improvement to the electors at an election called and held thereon. The tax imposed pur-
suant to this paragraph shall expire after five years from the date such tax is first collected.

(8) The board of county commissioners of Sherman county may submit the question of
imposing a countywide retailers' sales tax at the rate of .25%, .5% or .75% and pledging the
revenue therefrom for the purpose of financing the costs of the county roads 64 and 65
construction and improvement project. The tax imposed pursuant to this paragraph shall
expire upon payment of all costs authorized pursuant to this paragraph in the financing of
such project.

(9) The board of county commissioners of Russell county may submit the question of
imposing a countywide retailers' sales tax at the rate of .5% and pledging the revenue re-
ceived therefrom for the purpose of financing economic development initiatives or public
infrastructure projects. The tax imposed pursuant to this paragraph shall expire after five
years from the date such tax is first collected.

(c) The boards of county commissioners of any two or more contiguous counties, upon
adoption of a joint resolution by such boards, may submit the question of imposing a re-
tailers' sales tax within such counties to the electors of such counties at an election called
and held thereon and such boards of any two or more contiguous counties shall be required
to submit such question upon submission of a petition in each of such counties, signed by
a number of electors of each of such counties where submitted equal in number to not less
than 10% of the electors of each of such counties who voted at the last preceding general
election for the office of secretary of state, or upon receiving resolutions requesting such
an election passed by not less than 2/3 of the membership of the governing body of each of
one or more cities within each of such counties which contains a population of not less than
25% of the entire population of each of such counties, or upon receiving resolutions re-
questing such an election passed by 2/3 of the membership of the governing body of each of
one or more taxing subdivisions within each of such counties which levy not less than 25%
of the property taxes levied by all taxing subdivisions within each of such counties.

(d) Any city retailers' sales tax in the amount of .5% being levied by a city on July 1,
1990, shall continue in effect until repealed in the manner provided herein for the adoption
and approval of such tax or until repealed by the adoption of an ordinance so providing. In
addition to any city retailers' sales tax being levied by a city on July 1, 1990, any such city
may adopt an additional city retailers' sales tax in the amount of .25% or .5%, provided that
such additional tax is adopted and approved in the manner provided for the adoption and
approval of a city retailers' sales tax. Any countywide retailers' sales tax in the amount of
.5% or 1% in effect on July 1, 1990, shall continue in effect until repealed in the manner
provided herein for the adoption and approval of such tax.

(e) A class D city shall have the same power to levy and collect a city retailers' sales tax
that a class A city is authorized to levy and collect and in addition, the governing body of
any class D city may submit the question of imposing an additional city retailers' sales tax
in the amount of .125%, .25%, .5% or .75% and pledging the revenue received therefrom
for economic development initiatives, strategic planning initiatives or for public infrastruc-
ture projects including buildings to the electors at an election called and held thereon. Any
additional sales tax imposed pursuant to this paragraph shall expire no later than five years
from the date of imposition thereof.

(f) Any city or county proposing to adopt a retailers' sales tax shall give notice of its
intention to submit such proposition for approval by the electors in the manner required by
K.S.A. 10-120, and amendments thereto. The notices shall state the time of the election and
the rate and effective date of the proposed tax. If a majority of the electors voting thereon
at such election fail to approve the proposition, such proposition may be resubmitted under
the conditions and in the manner provided in this act for submission of the proposition. If
a majority of the electors voting thereon at such election shall approve the levying of such
tax, the governing body of any such city or county shall provide by ordinance or resolution,
as the case may be, for the levy of the tax. Any repeal of such tax or any reduction or increase
in the rate thereof, within the limits prescribed by K.S.A. 12-189, and amendments thereto,
shall be accomplished in the manner provided herein for the adoption and approval of such
tax except that the repeal of any such city retailers' sales tax may be accomplished by the
adoption of an ordinance so providing.

(g) The sufficiency of the number of signers of any petition filed under this section shall
be determined by the county election officer. Every election held under this act shall be
conducted by the county election officer.

(h) The governing body of the city or county proposing to levy any retailers' sales tax
shall specify the purpose or purposes for which the revenue would be used, and a statement
generally describing such purpose or purposes shall be included as a part of the ballot
proposition.

Sec. 3. K.S.A. 1998 Supp. 12-189 is hereby amended to read as follows: 12-189. Except
as otherwise provided by paragraph (2) of subsection (a) of K.S.A. 12-187, and amendments
thereto, the rate of any class A, class B or class C city retailers' sales tax shall be fixed in
the amount of .25%, .5%, .75% or 1% which amount shall be determined by the governing
body of the city. Except as otherwise provided by paragraph (2) of subsection (a) of K.S.A.
12-187, and amendments thereto, the rate of any class D city retailers' sales tax shall be
fixed in the amount of .25%, .5%, .75%, 1%, 1.125%, 1.25%, 1.5% or 1.75%. The rate of
any countywide retailers' sales tax shall be fixed in an amount of either .25%, .5%, .75% or
1% which amount shall be determined by the board of county commissioners, except that:

(a) The board of county commissioners of Cherokee, Crawford, Ford, Saline, Seward
or Wyandotte county, for the purposes of paragraph (2) of subsection (b) of K.S.A. 12-187,
and amendments thereto, may fix such rate at 1.5%, the board of county commissioners of
Atchison county, for the purposes of paragraph (2) of subsection (b) of K.S.A. 12-187, and
amendments thereto, may fix such rate at 1.5% or 1.75% and the board of county commis-
sioners of Barton, Jefferson or Ottawa county, for the purposes of paragraph (2) of subsec-
tion (b) of K.S.A. 12-187, and amendments thereto, may fix such rate at 2%;

(b) the board of county commissioners of Jackson county, for the purposes of paragraph
(3) of subsection (b) of K.S.A. 12-187, and amendments thereto, may fix such rate at 2%;

(c) the boards of county commissioners of Finney and Ford counties, for the purposes
of paragraph (4) of subsection (b) of K.S.A. 12-187, and amendments thereto, may fix such
rate at .25%;

(d) the board of county commissioners of any county for the purposes of paragraph (5)
of subsection (b) of K.S.A. 12-187, and amendments thereto, may fix such rate at a per-
centage which is equal to the sum of the rate allowed to be imposed by a board of county
commissioners on the effective date of this act plus .25%, .5%, .75% or 1%, as the case
requires;

(e) the board of county commissioners of Dickinson county, for the purposes of para-
graph (7) of subsection (b) of K.S.A. 12-187, and amendments thereto, may fix such rate at
1.5%; or

(f) the board of county commissioners of Sherman county, for the purposes of paragraph
(8) of subsection (b) of K.S.A. 12-187, and amendments thereto, may fix such rate at l.5%,
1.75% or 2%.; or

(g) the board of county commissioners of Russell county for the purposes of paragraph
(9) of subsection (b) of K.S.A. 12-187, and amendments thereto, may fix such rate at 1.5%.

Any county or city levying a retailers' sales tax is hereby prohibited from administering
or collecting such tax locally, but shall utilize the services of the state department of revenue
to administer, enforce and collect such tax. Except as otherwise specifically provided in
K.S.A. 12-189a, and amendments thereto, such tax shall be identical in its application, and
exemptions therefrom, to the Kansas retailers' sales tax act and all laws and administrative
rules and regulations of the state department of revenue relating to the Kansas retailers'
sales tax shall apply to such local sales tax insofar as such laws and rules and regulations may
be made applicable. The state director of taxation is hereby authorized to administer, enforce
and collect such local sales taxes and to adopt such rules and regulations as may be necessary
for the efficient and effective administration and enforcement thereof.

Upon receipt of a certified copy of an ordinance or resolution authorizing the levy of a
local retailers' sales tax, the state director of taxation shall cause such taxes to be collected
within or without the boundaries of such taxing subdivision at the same time and in the
same manner provided for the collection of the state retailers' sales tax. All moneys collected
by the director of taxation under the provisions of this section shall be credited to a county
and city retailers' sales tax fund which fund is hereby established in the state treasury. Any
refund due on any county or city retailers' sales tax collected pursuant to this act shall be
paid out of the sales tax refund fund and reimbursed by the director of taxation from
collections of local retailers' sales tax revenue. All local retailers' sales tax revenue collected
within any county or city pursuant to this act shall be apportioned and remitted at least
quarterly by the state treasurer, on instruction from the director of taxation, to the treasurer
of such county or city.

The director of taxation shall provide, upon request by a city or county clerk or treasurer
of any city or county levying a local retailers' sales tax, a monthly report identifying each
retailer having a place of business in such city or county and setting forth the amount of
such tax remitted by each retailer during the preceding month. Such report shall be made
available to the clerk or treasurer of such city or county within a reasonable time after it
has been requested from the director of taxation. The director of taxation shall be allowed
to assess a reasonable fee for the issuance of such report. Information received by any city
or county pursuant to this section shall be confidential, and it shall be unlawful for any
officer or employee of such city or county to divulge any such information in any manner.
Any violation of this paragraph by a city or county officer or employee is a class B misde-
meanor, and such officer or employee shall be dismissed from office.

Sec. 4. K.S.A. 1998 Supp. 12-192 is hereby amended to read as follows: 12-192. (a)
Except as otherwise provided by subsection (b), (d) or (h), all revenue received by the
director of taxation from a countywide retailers' sales tax shall be apportioned among the
county and each city located in such county in the following manner: (1) One-half of all
revenue received by the director of taxation shall be apportioned among the county and
each city located in such county in the proportion that the total tangible property tax levies
made in such county in the preceding year for all funds of each such governmental unit
bear to the total of all such levies made in the preceding year, and (2) 1/2 of all revenue
received by the director of taxation from such countywide retailers' sales tax shall be ap-
portioned among the county and each city located in such county, first to the county that
portion of the revenue equal to the proportion that the population of the county residing in
the unincorporated area of the county bears to the total population of the county, and second
to the cities in the proportion that the population of each city bears to the total population
of the county, except that no persons residing within the Fort Riley military reservation shall
be included in the determination of the population of any city located within Riley county.
All revenue apportioned to a county shall be paid to its county treasurer and shall be credited
to the general fund of the county.

(b) (1) As an alternative and in lieu of the apportionment formula provided in subsec-
tion (a), all revenue received by the director of taxation from a countywide retailers' sales
tax imposed within Johnson county at the rate of .75% or 1% after the effective date of this
act may be apportioned among the county and each city located in such county in the
following manner: (A) The revenue received from the first .5% rate of tax shall be appor-
tioned in the manner prescribed by subsection (a) and (B) the revenue received from the
rate of tax exceeding .5% shall be apportioned as follows: (i) One-fourth shall be apportioned
among the county and each city located in such county in the proportion that the total
tangible property tax levies made in such county in the preceding year for all funds of each
such governmental unit bear to the total of all such levies made in the preceding year and
(ii) one-fourth shall be apportioned among the county and each city located in such county,
first to the county that portion of the revenue equal to the proportion that the population
of the county residing in the unincorporated area of the county bears to the total population
of the county, and second to the cities in the proportion that the population of each city
bears to the total population of the county and (iii) one-half shall be retained by the county
for its sole use and benefit.

(2) In lieu of the apportionment formula provided in subsection (a), all money received
by the director of taxation from a countywide sales tax imposed within Montgomery county
pursuant to the election held on November 8, 1994, shall be remitted to and shall be retained
by the county and expended only for the purpose for which the revenue received from the
tax was pledged. All revenue apportioned and paid from the imposition of such tax to the
treasurer of any city prior to the effective date of this act shall be remitted to the county
treasurer and expended only for the purpose for which the revenue received from the tax
was pledged.

(c) (1) Except as otherwise provided by paragraph (2) of this subsection, for purposes
of subsections (a) and (b), the term ``total tangible property tax levies'' means the aggregate
dollar amount of tax revenue derived from ad valorem tax levies applicable to all tangible
property located within each such city or county. The ad valorem property tax levy of any
county or city district entity or subdivision shall be included within this term if the levy of
any such district entity or subdivision is applicable to all tangible property located within
each such city or county.

(2) For the purposes of subsections (a) and (b), any ad valorem property tax levied on
property located in a city in Johnson county for the purpose of providing fire protection
service in such city shall be included within the term ``total tangible property tax levies'' for
such city regardless of its applicability to all tangible property located within each such city.
If the tax is levied by a district which extends across city boundaries, for purposes of this
computation, the amount of such levy shall be apportioned among each city in which such
district extends in the proportion that such tax levied within each city bears to the total tax
levied by the district.

(d) (1) All revenue received from a countywide retailers' sales tax imposed pursuant to
paragraphs (2), (6), (7) or, (8) or (9) of subsection (b) of K.S.A. 12-187, and amendments
thereto, shall be remitted to and shall be retained by the county and expended only for the
purpose for which the revenue received from the tax was pledged.

(2) Except as otherwise provided in paragraph (5) of subsection (b) of K.S.A. 12-187,
and amendments thereto, all revenues received from a countywide retailers' sales tax im-
posed pursuant to paragraph (5) of subsection (b) of K.S.A. 12-187, and amendments
thereto, shall be remitted to and shall be retained by the county and expended only for the
purpose for which the revenue received from the tax was pledged.

(e) All revenue apportioned to the several cities of the county shall be paid to the
respective treasurers thereof and deposited in the general fund of the city. Whenever the
territory of any city is located in two or more counties and any one or more of such counties
do not levy a countywide retailers' sales tax, or whenever such counties do not levy coun-
tywide retailers' sales taxes at a uniform rate, the revenue received by such city from the
proceeds of the countywide retailers' sales tax, as an alternative to depositing the same in
the general fund, may be used for the purpose of reducing the tax levies of such city upon
the taxable tangible property located within the county levying such countywide retailers'
sales tax.

(f) Prior to March 1 of each year, the secretary of revenue shall advise each county
treasurer of the revenue collected in such county from the state retailers' sales tax for the
preceding calendar year.

(g) Prior to December 31 of each year, the clerk of every county imposing a countywide
retailers' sales tax shall provide such information deemed necessary by the secretary of
revenue to apportion and remit revenue to the counties and cities pursuant to this section.

Sec. 5. K.S.A. 1998 Supp. 12-187, 12-188, 12-189 and 12-192 are hereby repealed.

Sec. 6. This act shall take effect and be in force from and after its publication in the
Kansas register.'';

In the title, in line 9, by striking all after the semicolon; by striking all in lines 10 and 11
and inserting ``providing local retailers' sales tax imposition authority for certain cities and
counties; amending K.S.A. 1998 Supp. 12-187, 12-188, 12-189 and 12-192 and repealing
the existing sections.'' and the bill be passed as amended.

Committee on Ways and Means recommends SB 39, 41 be passed.

On motion of Senator Emert the Senate adjourned until 9:00 a.m., Friday, January 15,
1999.

HELEN A. MORELAND, Journal Clerk.

PAT SAVILLE, Secretary of Senate.