March 7, 2000

Journal of the House

FORTIETH DAY
______
Hall of the House of Represenatitives
Topeka, KS, Tuesday, March 7, 2000, 11:00 a.m.
 The House met pursuant to adjournment with Speaker pro tem Mays in the chair.

 The roll was called with 123 members present.

 Reps. Holmes and O'Neal were excused on excused absence by the Speaker.

     Prayer sung by guest chaplain, the Rev. Cheryl Bell, Executive Minister, United
Methodist Urban Ministry of Wichita, Inc., and guest of Rep. Welshimer:

                 We are Your body Lord, Your love compels us,

             To join our hearts and hands and feet as one;

             To work together, serve and share with gladness

             The gospel news of Jesus, God's own Son.

             In humble prayer we give ourselves in service

             It is the least that Your love could demand.

             We seek Your face and ask for Your forgiveness

             Then as You promised, Father, come and heal our land.

                 Lord, search our hearts and make us more like Jesus

             In showing love when faced with shame and sin.

             Remove all trace of prejudice and hatred

             And make us pure and whole and true within.

             In humble prayer we give ourselves in service

             It is the least that Your love could demand.

             We seek Your face and ask for Your forgiveness

             Then as You promised, Father, come and heal our land. Amen.

     The Pledge of Allegiance was led by Rep. Haley.

INTRODUCTION OF BILLS AND CONCURRENT RESOLUTIONS
 The following concurrent resolution was introduced and read by title:

      HOUSE CONCURRENT RESOLUTION No. 5070--

By Committee on Agriculture


A  CONCURRENT  RESOLUTION urging the Department of Agriculture, Department
      of Commerce, Kansas State Research and Extension of the College of Agriculture,
      Kansas Cattlemen's Association, Kansas Farm Bureau, Kansas Farmers Union, Kansas
      Pork Producers Council, Kansas Livestock Association and the independent small locker
      plants to assist producers of beef, pork and poultry to market their own products.

              WHEREAS,  Increased demand provides an excellent opportunity for producers and
processors to market our outstanding quality Kansas produced beef; and

      WHEREAS,  There are no federal ``country-of-origin'' labeling requirements for beef, or
any other food products that we import. Many well-known companies buy much of their
beef from Central and South America and Australia, not from the United States of America
and our American ranches demonstrating that the United States Department of Agriculture
does not mean grown in the U.S.A.; and

      WHEREAS,  The State of Kansas lost 32 locker plants during the years of 1998 to 2000;
and

      WHEREAS,  We feel strongly about the importance of providing safe delicious beef to
our customers, especially in light of all the recent news about the unsafe beef coming into
this country from other countries around the world; and

      WHEREAS,  The United States Secretary of Agriculture, the Secretary of Agriculture of
the State of Kansas, many members of Congress and others have stated that interstate
shipping of state-inspected meat and meat products should be allowed after the full
implementation of the food safety and inspection requirements mandated by HACCP,
hazard analysis and critical control points; and

      WHEREAS,  We have attained full implementation of the HACCP requirements; and

      WHEREAS,  In anticipation of Congress allowing such interstate shipping of state-
inspected meat and meat products, the States of Minnesota and North Dakota and others
are preparing for the shipment of state-inspected meat and meat products across state lines
by initiating innovative programs to promote such sales and encouraging the establishment
of new small food locker plants: Now, therefore,

      Be it resolved by the House of Representatives of the State of Kansas, the Senate concurring
therein: That we encourage cooperation between the Department of Agriculture,
Department of Commerce, Kansas State Research and Extension of the College of
Agriculture, Kansas Cattlemen's Association, Kansas Farm Bureau, Kansas Farmers Union,
Kansas Pork Producers Council, Kansas Livestock Association and independent small locker
plants to assist producers of beef, pork and poultry to market their own products; and

      Be it further resolved: That the State of Kansas should encourage and assist producers
to market their own products directly to consumers; and

      Be it further resolved: That the Kansas Legislature should pass legislation providing tax
credits for small locker plants which purchased machinery and equipment to comply with
safety regulations; and

      Be it further resolved: That the Secretary of State be directed to send an enrolled copy
of this resolution to the Department of Agriculture, Department of Commerce, Kansas
State Research and Extension of the College of Agriculture, Kansas Cattlemen's Association,
Kansas Farm Bureau, Kansas Farmers Union, Kansas Pork Producers Council, Kansas
Livestock Association and independent small locker plants in Kansas.

COMMUNICATIONS FROM STATE OFFICERS
 From Joseph B. Evans, Spahr Professor of Electrical Engineering and Computer Science,
Acting Director, The University of Kansas, Information and Telecommunication Technology
Center, Annual Report for Fiscal Year 1999.

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

FINAL ACTION ON BILLS AND CONCURRENT RESOLUTIONS
 HB 2687, An act concerning the real estate brokers' and salespersons' license act; relating
to certain prohibited acts; relating to compensation for services; amending K.S.A. 58-3038
and K.S.A. 1999 Supp. 58-3034, 58-3035 and 58-3062 and repealing the existing sections,
was considered on final action.

 On roll call, the vote was: Yeas 106; Nays 15; Present but not voting: 1; Absent or not
voting: 3.

 Yeas: Aday, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Bethell, Boston,
Burroughs, Campbell, Carmody, Compton, Cox, Crow, Dahl, Dreher, Edmonds, Empson,
Faber, Farmer, Findley, Flora, Flower, Freeborn, Garner, Gatewood, Geringer, Gilbert,
Glasscock, Grant, Gregory, Haley, Hayzlett, Helgerson, Henderson, Henry, Hermes, Horst,
Howell, Huff, Humerickhouse, Hutchins, Jenkins, Jennison, Johnson, Johnston, Kirk, Klein,
Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, Light, Lightner, Lloyd,
M. Long, P. Long, Loyd, Mason, Mayans, Mays, McCreary, McKechnie, Merrick,
Mollenkamp, Jim Morrison, Judy Morrison, Myers, Neufeld, Nichols, O'Connor, Osborne,
Palmer, J. Peterson, Phelps, Powell, Powers, Ray, Reardon, Rehorn, Ruff, Schwartz, Sharp,
Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Tomlinson,
Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Wilk.

 Nays: Barnes, Dean, Feuerborn, Flaharty, McClure, McKinney, Minor, O'Brien, Pauls,
E. Peterson, Reinhardt, Tedder, Thimesch, Toelkes, Welshimer.

 Present but not voting: Pottorff.

 Absent or not voting: Adkins, Holmes, O'Neal.

 The bill passed, as amended.

   SB 389, An act concerning the capitol; relating to a memorial for Kansas firefighters on
the capitol grounds; prescribing certain powers, duties, functions, guidelines and procedures;
advisory committee, was considered on final action.

 On roll call, the vote was: Yeas 108; Nays 15; Present but not voting: 0; Absent or not
voting: 2.

 Yeas: Aday, Adkins, Alldritt, Allen, Ballard, Barnes, Beggs, Benlon, Bethell, Boston,
Burroughs, Campbell, Compton, Cox, Crow, Dahl, Dean, Edmonds, Faber, Farmer,
Feuerborn, Findley, Flaharty, Flora, Flower, Freeborn, Garner, Gatewood, Geringer,
Gilbert, Glasscock, Grant, Gregory, Haley, Helgerson, Henderson, Henry, Hermes, Horst,
Howell, Huff, Humerickhouse, Hutchins, Jenkins, Johnson, Johnston, Kirk, Klein, Phil
Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, Light, Lightner, Lloyd, M.
Long, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKinney,
Merrick, Minor, Mollenkamp, Jim Morrison, Judy Morrison, Myers, Nichols, O'Brien,
O'Connor, Osborne, Palmer, Pauls, E. Peterson, Phelps, Powell, Powers, Reardon, Rehorn,
Reinhardt, Ruff, Sharp, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson,
Tanner, Tedder, Thimesch, Toelkes, Toplikar, Vickrey, Vining, Wagle, Weiland, Wells,
Welshimer, Wilk.

 Nays: Aurand, Ballou, Carmody, Dreher, Empson, Hayzlett, Jennison, Loyd, Neufeld, J.
Peterson, Pottorff, Ray, Schwartz, Tomlinson, Weber.

 Present but not voting: None.

 Absent or not voting: Holmes, O'Neal.

 The bill passed, as amended.

   On motion of Rep. Glasscock, the House went into Committee of the Whole, with Rep.
McCreary in the chair.

COMMITTEE OF THE WHOLE
 On motion of Rep. McCreary, Committee of the Whole report, as follows, was adopted:

 Recommended that discussion resume on the motion to amend SB 190 by Rep.
Welshimer (see HJ, Committee of the Whole, p. 1529). The motion was subsequently
withdrawn.

 Also, roll call was demanded on further motion of Rep. Welshimer to amend SB 190 on
page 1, in line 19, by striking ``1998'' and inserting ``1999'';

      On page 4, in line 18, by striking ``1998'' and inserting ``1999'';

      On page 5, in line 8, by striking ``1998'' and inserting ``1999'';

      On page 6, in line 1, by striking ``1998'' and inserting ``1999'';

      On page 7, in line 9, by striking ``1998'' and inserting ``1999'';

      On page 11, in line 23, by striking ``1998'' and inserting ``1999''; preceding line 24, by
inserting the following:

      ``New Sec.  6. (a) The legislature of the state of Kansas finds that a significant number
of Kansas residents choose naturopathic medicine for their health care needs and declares
that naturopathic medicine is a distinct health care profession that affects the public health,
safety and welfare and provides for freedom of choice in health care.

      (b) The purpose of this act is:

      (1) To provide standards for the licensing and regulation of naturopathic physicians in
order to protect the public health, safety and welfare.

      (2) To insure that naturopathic medicine by qualified naturopathic physicians is
available to the people of Kansas.

      (3) To provide a means of identifying qualified naturopathic physicians.

      New Sec.  7. As used in this act:

      (a) ``Board'' means the state board of healing arts.

      (b) ``Homeopathic preparations'' means medicines prepared according to the
homeopathic pharmacopoeia of the United States.

      (c) ``Minor office procedures'' means care incident to superficial lacerations and
abrasions, and the removal of foreign bodies located in superficial structures, except the
eyes. ``Minor office procedures'' includes the use of antiseptics, topical anesthetics, anti-
bacterial agents, in connection with such procedures but shall not include the alteration or
removal of tissue.

      (d) ``Naturopathic physician'' means a doctor of naturopathic medicine who is licensed
as a naturopathic physician pursuant to this act.

      (e) ``Naturopathic manipulative therapy'' means the manually administered, mechanical
treatment of body structures or tissues, in accordance with approved naturopathic medical
school principles, for the purpose of restoring normal physiological function to the body by
normalizing and balancing the musculoskeletal system of the body.

      (f) ``Naturopathic medicine'' means a system of primary health care practiced by doctors
of naturopathic medicine for the prevention, diagnosis and treatment of human health
conditions, injuries and diseases that uses education, natural medicines and therapies to
support and stimulate the individual's intrinsic self-healing processes.

      (g) ``Naturopathic physical medicine'' means the therapeutic use of the physical agents
of air, water, heat, cold, sound, light and electromagnetic non-ionizing radiation and the
physical modalities of electrotherapy, diathermy, ultraviolet light, ultrasound, hydrotherapy,
naturopathic manipulative therapy and therapeutic exercise.

      New Sec.  8. (a) No person shall represent oneself as a licensed naturopathic physician
or use such title as N.D., naturopathic medical doctor, naturopathic doctor or naturopathic
physician unless licensed as provided by this act.

      (b) No person shall practice or represent oneself as practicing naturopathic medicine
unless licensed pursuant to this act.

      (c) Licensed naturopathic physicians:

      (1) May use the title ``naturopathic physician,'' ``doctor of naturopathic medicine,''
``naturopathic medical doctor,'' the abbreviation ``N.D.,'' ``N.M.D.'' and ``N.P.''; and

      (2) shall have the exclusive right to use the terms ``doctor of naturopathic medicine,''
``naturopathic physician,'' ``naturopathic medical doctor,'' ``naturopathic medical care,''
``N.D.,'' ``N.M.D.'' and ``N.P.''

      New Sec.  9. Naturopathic physicians may:

      (a) Use for preventive and therapeutic purposes the following natural medicines and
therapies: Food, food extracts, vitamins, minerals, enzymes, amino acids, digestive aids,
whole gland thyroid, natural hormones, plant substances, all homeopathic preparations,
topical medicines, local anesthetics, counseling, hypnotherapy, biofeedback, dietary therapy,
naturopathic physical medicine, therapeutic devices and barrier devices for contraception.

      (b) Use for diagnostic purposes physical and orifical examinations, ultrasound,
phlebotomy, clinical laboratory tests and examinations and physiological function tests.

      (c) Order the taking of and reading of x-ray tests and electrocardiograms.

      (d) Prescribe nonprescription medications and therapeutic devices and use noninvasive
diagnostic procedures used by practitioners of the healing arts.

      (e) Prescribe, dispense and administer intramuscularly or intravenously any vitamins,
minerals, botanicals, glandulars, natural hormones, amino acids, D5W, saline solutions and
isotonic solutions.

      (f) Practice obstetrics with a specialty certificate issued by an approved naturopathic
college and meeting the standards of the American college of naturopathic obstetrics and
gynecology.

      New Sec.  10. Naturopathic physicians shall not:

      (a) Prescribe, dispense or administer any prescription drugs or controlled substances,
except those natural medicines as authorized by this act.

      (b) Perform the taking of x-ray tests or electrocardiograms.

      (c) Perform surgical procedures.

      (d) Practice emergency medicine, except as a good samaritan rendering gratuitous
services in the case of emergency and except for the care of minor injuries.

      (e) Practice or claim to practice allopathic medicine, surgery, osteopathy, dentistry,
podiatry, optometry, chiropractic, physical therapy or any other system or method of
treatment not authorized by this act.

      (f) Perform an abortion or prescribe or administer medicines or homeopathic
preparations for the purpose of inducing an abortion.

      New Sec.  11. Nothing in this act shall be construed to prohibit or restrict:

      (a) The practice of a profession by individuals who are licensed, certified or registered
under other laws of this state who are performing services within their authorized scope of
practice.

      (b) The practice of naturopathic medicine by an individual employed by the government
of the United States while the individual is engaged in the performance of duties prescribed
by the laws and regulations of the United States.

      (c) The practice by a doctor of naturopathic medicine duly registered or licensed in
another state, territory, or the district of Columbia when incidentally called into this state
for consultation with a person licensed to practice medicine and surgery.

      (d) The practice of naturopathic medicine by students enrolled in an approved
naturopathic medical college. The performance of services shall be pursuant to a course of
instruction or assignments from an instructor and under the supervision of the instructor.
The instructor shall be a licensed naturopathic physician.

      (e) The treatment of the sick or suffering by spiritual means through prayer alone in
accordance with the tenets and practices of an established church or religious denomination.

      (f) Persons gratuitously administering ordinary nutritional or household remedies.

      (g) A chiropractor licensed under the healing arts act.

      (h) Any person, including persons employed in health food stores, from furnishing
nutrition information as to the use of food, food materials or dietary supplements, nor to
prevent in any way the free dissemination of information or of literature as long as no
individual engaged in such practices holds oneself out as being licensed under this act.

      (i) Persons furnishing nutrition information or counseling as to the use of food, food
materials or dietary supplements as long as no person engaged in furnishing such information
holds oneself out as being licensed under this act.

      New Sec.  12. Naturopathic physicians shall have the same authority and responsibility
as other practitioners of the healing arts regarding public health laws, reportable diseases
and conditions, communicable disease control and prevention, recording of vital statistics,
health and physical examinations, and local boards of health, except that such authority shall
be limited to activity consistent with the scope of practice authorized by this act.

      New Sec.  13. The board shall:

      (a) Establish fees for annual licensing of naturopathic physicians and for the renewal of
such licensing. An initial licensure fee shall be established by rules and regulations and shall
not exceed $1,000. An annual license renewal fee shall be established by rules and
regulations and shall not exceed $300.

      (b) Maintain a roster of all licensed naturopathic physicians under this act which
indicates:

      (1) The name of the licensee.

      (2) Current professional office address.

      (3) The date of issuance and the license number.

      (4) Whether the licensee is in good standing.

      (c) Keep all applications for licensure as a permanent record.

      (d) Compile and publish annually a directory of all licensed naturopathic physicians in
Kansas.

      (e) Prepare and keep up to date a list of universities, colleges or schools accredited by
the national council on naturopathic medicine, but no university, school or college shall be
approved by the board without the formal action of the board.

      (f) Require proof of completion of at least 20 hours of continuing education each year
prior to approving any application for renewal of the license. The board shall approve only
those continuing education courses which have been approved by the American association
of naturopathic physicians (AANP) or the American Academy of continuing medical
education.

      New Sec.  14. After January 1, 2002, the board shall issue a provisional license to
graduates of approved naturopathic medical schools until the provisional licensee has
completed one year of residential training under a licensed naturopathic physician or a
person licensed to practice medicine and surgery who has also practiced naturopathic
medicine for one year or more.

      New Sec.  15. The board shall issue a full naturopathic physician's license to:

      (a) Any graduate from a school of naturopathy that required four years of attendance
at the school and at the time of graduation the school was accredited or a candidate for
accreditation by the council on naturopathic medical examination or a successor organization
recognized by the United States department of education and who has passed the
naturopathic physicians licensing examination or its successor that is a competency based
examination covering appropriate naturopathic subjects including basic and clinical sciences.

      (b) Any graduate of an accredited naturopathic medical university, school or college
who practiced naturopathic medicine in Kansas under K.S.A. 65-2872a prior to January 1,
2001.

      (c) Any graduate from a school of naturopathy that required four years of attendance
at the school and who holds a license to practice naturopathic medicine in a state with equal
standards and qualifications.

      (d) After January 1, 2002, applicants for licenses must show documentation of one year
residence training as described in section 9 and amendments thereto or one year practice
with a valid license in another state.

      Sec.  16. K.S.A. 65-2872 is hereby amended to read as follows: 65-2872. The practice
of the healing arts shall not be construed to include the following persons:

      (a) Persons rendering gratuitous services in the case of an emergency.

      (b) Persons gratuitously administering ordinary nutritional or household remedies.

      (c) The members of any church practicing their religious tenets provided they shall not
be exempt from complying with all public health regulations of the state.

      (d) Students while in actual classroom attendance in an accredited healing arts school
who after completing one (1) year's study treat diseases under the supervision of a licensed
instructor.

      (e) Students upon the completion of at least three (3) years study in an accredited
healing arts school and who, as a part of their academic requirements for a degree, serve a
preceptorship not to exceed ninety (90) 90 days under the supervision of a licensed
practitioner.

      (f) Persons who massage for the purpose of relaxation, muscle conditioning, or figure
improvement, provided no drugs are used and such persons do not hold themselves out to
be physicians or healers.

      (g) Persons whose professional services are performed under the supervision or by order
of or referral from a practitioner who is licensed under this act.

      (h) Persons in the general fields of psychology, education and social work, dealing with
the social, psychological and moral well-being of individuals and/or groups provided they
do not use drugs and do not hold themselves out to be the physicians, surgeons, osteopathic
physicians, naturopathic physicians or chiropractors.

      (i) Practitioners of the healing arts in the United States army, navy, air force, public
health service, and coast guard or other military service when acting in the line of duty in
this state.

      (j) Practitioners of the healing arts licensed in another state when and while incidentally
called into this state in consultation with practitioners licensed in this state, or residing on
the border of a neighboring state, duly licensed under the laws thereof to practice a branch
of the healing arts, but who do not open an office or maintain or appoint a place to regularly
meet patients or to receive calls within this state.

      (k) Dentists practicing their professions, when licensed and practicing in accordance
with the provisions of article 14 of chapter 65 of the Kansas Statutes Annotated, or
amendments thereto, and any interpretation thereof by the supreme court of this state.

      (l) Optometrists practicing their professions, when licensed and practicing under and
in accordance with the provisions of article 15 of chapter 65 of the Kansas Statutes
Annotated, or amendments thereto, and any interpretation thereof by the supreme court of
this state.

      (m) Nurses practicing their profession when licensed and practicing under and in
accordance with the provisions of article 11 of chapter 65 of the Kansas Statutes Annotated,
or amendments thereto, and any interpretation thereof by the supreme court of this state.

      (n) Podiatrists practicing their profession, when licensed and practicing under and in
accordance with the provisions of article 20 of chapter 65 of the Kansas Statutes Annotated,
or amendments thereto, and any interpretation thereof by the supreme court of this state.

      (o) Every act or practice falling in the field of the healing art, not specifically excepted
herein, shall constitute the practice thereof.

      (p) Pharmacists practicing their profession, when licensed and practicing under and in
accordance with the provisions of article 16 of chapter 65 of the Kansas Statutes Annotated,
or amendments thereto, and any interpretation thereof by the supreme court of this state.

      (q) A dentist licensed in accordance with the provisions of article 14 of chapter 65 of
the Kansas Statutes Annotated who administers general and local anesthetics to facilitate
medical procedures conducted by a person licensed to practice medicine and surgery if such
dentist is certified by the board of healing arts under K.S.A. 65-2899, and amendments
thereto, to administer such general and local anesthetics.'';

      And renumbering remaining sections accordingly;

      Also on page 11, in line 24, by striking ``1998'' and inserting ``65-2872 and 65-2872a and
K.S.A. 1999'';

      In the title, on page 1, in line 12, following ``concerning'', by inserting ``licensing under'';
in line 14 after the semicolon, by inserting ``licensing of naturopathic physicians;''; also in
line 14, by striking ``1998'' and inserting ``65-2872 and K.S.A. 1999''; in line 16, after
``sections'' by inserting ``; also repealing 65-2872a'';

 On roll call, the vote was: Yeas 56; Nays 66; Present but not voting: 0; Absent or not
voting: 3.

 Yeas: Alldritt, Ballard, Barnes, Beggs, Burroughs, Crow, Dean, Farmer, Findley, Flaharty,
Flora, Garner, Gatewood, Gilbert, Grant, Gregory, Haley, Helgerson, Henderson, Howell,
Kirk, Klein, Kuether, Landwehr, Larkin, M. Long, P. Long, Mayans, McClure, McCreary,
McKinney, Myers, Nichols, O'Brien, O'Connor, Palmer, Pauls, E. Peterson, Phelps,
Pottorff, Powell, Powers, Reardon, Rehorn, Ruff, Sharp, Spangler, Swenson, Tedder,
Thimesch, Toelkes, Tomlinson, Toplikar, Wagle, Weiland, Welshimer.

 Nays: Aday, Adkins, Allen, Aurand, Ballou, Benlon, Bethell, Boston, Campbell, Carmody,
Compton, Cox, Dahl, Dreher, Edmonds, Empson, Faber, Feuerborn, Flower, Freeborn,
Geringer, Glasscock, Hayzlett, Henry, Hermes, Horst, Huff, Humerickhouse, Hutchins,
Jenkins, Jennison, Johnson, Johnston, Phil Kline, Phill Kline, Krehbiel, Lane, Light,
Lightner, Lloyd, Loyd, Mason, Mays, McKechnie, Merrick, Minor, Mollenkamp, Jim
Morrison, Neufeld, Osborne, J. Peterson, Ray, Reinhardt, Schwartz, Showalter, Shriver,
Shultz, Sloan, Stone, Storm, Tanner, Vickrey, Vining, Weber, Wells, Wilk.

 Present but not voting: None.

 Absent or not voting: Holmes, Judy Morrison, O'Neal.

 The motion of Rep. Welshimer did not prevail; and SB 190 be passed as amended.

REPORTS OF STANDING COMMITTEES
 The Committee on Agriculture recommends SB 564, as amended by Senate Committee,
be amended on page 5, in line 32, by striking ``(1)''; in line 35, by striking ``(A)'' and inserting
``(1)''; in line 37, by striking ``(B)'' and inserting ``(2)''; in line 39, by striking ``(C)'' and
inserting ``(3)''; in line 40, by striking ``(D)'' and inserting ``(4)''; and the bill be passed as
amended.

 The Committee on Financial Institutions recommends HB 2997; SB 457 be passed
and, because the committee is of the opinion that the bills are of a noncontroversial nature,
be placed on the consent calendar.

 The Committee on Financial Institutions recommends SB 412, as amended by Senate
Committee of the Whole, be amended on page 1, following line 24, by inserting the
following:

      ``Sec.  2. K.S.A. 1999 Supp. 9-808 is hereby amended to read as follows: 9-808. (a) After
first applying for and receiving approval from the commissioner, any national bank
incorporated, federal savings association or federal savings bank organized under the laws
of the United States may become a state bank upon the affirmative vote of not less than
two-thirds 2/3 of its outstanding voting stock. Any national bank, federal savings association
or federal savings bank desiring to become a state bank shall file a certified copy of its
articles of association, together with the transcript of the minutes of the meeting of its
stockholders showing approval, together with its articles of incorporation duly executed as
required by state law with the secretary of state who immediately shall transmit the same
to the commissioner apply to the commissioner for permission to convert to a state bank,
and shall submit a certified copy of its articles of association, a transcript of the minutes of
the meeting of its stockholders showing approval of the proposed conversion and any other
information required in the application form prescribed by the commissioner. A federal
savings association or federal savings bank operating in a mutual form must also convert to
a stock form prior to converting to a state bank and shall submit appropriate documentation
to the commissioner to show that the appropriate federal regulator has approved such mutual
to stock conversion. Upon receipt of each of the items required by this section the
commissioner shall make or cause to be made such investigation as the commissioner deems
necessary to determine whether:

      (1) All state and federal requirements for a conversion have been satisfied;

      (2) the conversion will not adversely affect the interests of the depositors; and

      (3) the resulting state bank will have an adequate capital structure.If the commissioner
determines each of these matters favorably the conversion shall be approved and the
commissioner shall issue a certificate of authority. Upon issuance of a certificate of authority,
the articles of incorporation, duly executed as required by state law, shall be filed with the
secretary of state.

      (b) In any conversion authorized by this section the capital requirements of this act shall
apply, and the new name for such resulting bank shall be approved by the commissioner.
In any conversion authorized by this section the resulting state bank shall have authority to
issue its shares of stock for shares of stock in the national bank, federal savings association
or federal savings bank or property of the national bank, federal savings association or federal
savings bank for and upon such valuation as shall be agreed upon, and approved by the
commissioner. In any conversion authorized by this section the resulting state bank by
operation of law shall continue all trust functions being exercised by the national bank,
federal savings association or federal savings bank and shall be substituted for the national
bank, federal savings association or federal savings bank and shall have the right to exercise
trust or fiduciary powers created by any instrument designating the national bank, federal
savings association or federal savings bank even though such instruments are not yet
effective.

      (c) In any conversion authorized by this section the resulting state bank shall succeed
by operation of law without any conveyance or transfer by the act of the national bank,
federal savings association or federal savings bank to all the actual or potential assets, real
property, tangible personal property, intangible personal property, rights, franchises and
interests, including those in a fiduciary capacity of the national bank, federal savings
association or federal savings bank and shall be subject to all of the liabilities of the national
bank, federal savings association or federal savings bank.

      (d) In any conversion authorized by this section the rights and responsibilities of any
shareholder of the national bank, federal savings association or federal savings bank who
objects or dissents to the proposed conversion shall be governed by the provisions of K.S.A.
17-6712, and amendments thereto, as though the national bank, federal savings association
or federal savings bank was a Kansas corporation and the objecting or dissenting shareholder
was objecting or dissenting to a proposed merger transaction. In any conversion authorized
by this section the corporate existence of the national bank, federal savings association or
federal savings bank shall be merged into and shall be continued in the resulting state bank,
and the resulting state bank shall be deemed to be the identical corporate entity as the
national bank, federal savings association or federal savings bank.

      (e) Within a reasonable time after the effective date of the conversion, the resulting bank
shall divest itself of all assets and liabilities that do not conform to state banking laws and
rules and regulations. The length of this transition period shall be determined by the
commissioner and shall be specified when the application for conversion is approved.'';

      By renumbering the remaining sections accordingly;

      Also on page 1, in line 28, by striking ``3'' and inserting ``4''; in line 39, following ``9-539''
by inserting ``and 9-808'';

      In the title, in line 11, following the second semicolon, by inserting ``providing for the
conversion of federal savings associations or banks;''; in line 12, following ``9-539'' by
inserting ``and 9-808''; and the bill be passed as amended.

 The Committee on Governmental Organization and Elections recommends SB 463,
465, as amended by Senate Committee, be passed and, because the committee is of the
opinion that the bills are of a noncontroversial nature, be placed on the consent calendar.

 Upon unanimous consent, the House referred back to the regular order of business,
Introduction of Bills and Concurrent Resolutions.

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

   HB 3019, An act concerning the Kansas development finance authority; authorizing the
issuance of bonds for certain purposes; amending K.S.A. 1999 Supp. 74-8905 and repealing
the existing section, by Committee on Appropriations.

 HB 3020, An act establishing the sunflower army ammunition plant remediation trust
fund; providing for administration and use of such fund, by Committee on Federal and State
Affairs.

 HB 3021, An act amending the Kansas tort claims act; concerning exceptions from
liability; amending K.S.A. 1999 Supp. 75-6104 and repealing the existing section, by
Committee on Federal and State Affairs.

REPORT ON ENGROSSED BILLS
 HB 2687 reported correctly engrossed March 6, 2000.

   On motion of Rep. Glasscock, the House adjourned until 11:00 a.m., Wednesday, March
8, 2000.

CHARLENE SWANSON, Journal Clerk.

JANET E. JONES, Chief Clerk.