The House met pursuant to adjournment with Speaker pro tem Mays in the chair.
The roll was called with 122 members present.
Rep. Holmes was excused on verified illness.
Reps. Geringer and Howell were excused on excused absence by the Speaker.
Prayer by Chaplain Svoboda:
Loving God,
You call each of us
to simply love You
and love others.
As we create the laws of this state
help us to remember
to love the people beside us,
the people on the other side of the aisle,
and all the people of this state.
Strengthen us
so that our laws may be
filled with love and compassion
for every Kansan.
We ask these things in Your name.
Amen.
The Pledge of Allegiance was led by Rep. Beggs.
REFERENCE OF BILLS AND CONCURRENT RESOLUTIONS
The following bills and resolutions were referred to committees as indicated:
Appropriations: HB 3040.
Education: HB 3036.
Federal and State Affairs: HB 3035; HCR 5075.
Financial Institutions: HB 3039.
Taxation: HB 3041.
Kansas 2000 Select: HB 3037, 3038.
MESSAGE FROM THE SENATE
Announcing passage of SB 266, 549.
Announcing passage of Sub. HB 2642; HB 2677, 2781, 2826.
Announcing passage of HB 2476, as amended by S. Sub. for HB 2476; HB 2622, as
amended; HB 2659, as amended; HB 2660, as amended; HB 2810, as amended; HB 2854, as amended.
The Senate concurs in House amendments to SB 500.
The Senate concurs in House amendments to SB 564.
The Senate adopts conference committee report on HB 2538.
Also, announcing passage of SB 380, 607.
Announcing passage of SB 389, as amended.
Announcing passage of HB 2672, 2673, 2675, 2691.
Announcing adoption of SCR 1626.
Announcing adoption of HCR 5050.
INTRODUCTION OF SENATE BILLS AND CONCURRENT RESOLUTIONS
The following Senate bills and concurrent resolution were thereupon introduced and read
by title:
SB 266, 380, 549, 607; SCR 1626.
REFERENCE OF BILLS AND CONCURRENT RESOLUTIONS
Speaker pro tem Mays announced the referral of SB 607 to Committee on Federal and
State Affairs.
MOTIONS TO CONCUR AND NONCONCUR
On motion of Rep. Adkins, the House nonconcurred in Senate amendments to SB 389,
which was ruled materially changed by the Senate on March 8 and passed as amended on
March 15, and asked for a conference.
Speaker pro tem Mays thereupon appointed Reps. Adkins, Neufeld and Reardon as con-
ferees on the part of the House.
MOTIONS AND RESOLUTIONS OFFERED ON A PREVIOUS DAY
The motion of Rep. Alldritt, in accordance with subsection (b) of House Rule 1309, that SB 431 be withdrawn from Committee on Judiciary and be placed on the calendar under
the order of business General Orders, was withdrawn.
CONSENT CALENDAR
No objection was made to SB 441, 458 appearing on the Consent Calendar for the first
day.
FINAL ACTION ON BILLS AND CONCURRENT RESOLUTIONS HB 2838, An act concerning infants and minor children actors; relating to certain con-
tracts and earnings thereunder; amending K.S.A. 38-102 and repealing the existing section,
was considered on final action.
On roll call, the vote was: Yeas 122; Nays 0; Present but not voting: 0; Absent or not
voting: 3.
Mr. Speaker: We vote yes on HB 2838 because this bill embodies the spirit of episode
number 136 of ``The Andy Griffith Show,'' entitled ``Opie's Fortune.''
When Opie found a wallet containing fifty dollars, Andy gently taught him that when
someone comes into a lot of money, it's okay to spend a little bit, but most of the money
should be saved for the future.--Clay Aurand, Clark Shultz
SB 487, An act relating to state moneys; powers, duties and functions relating to certain
bonded public debt; amending K.S.A. 75-4203 and 75-4204 and repealing the existing sec-
tions, was considered on final action.
On roll call, the vote was: Yeas 88; Nays 34; Present but not voting: 0; Absent or not
voting: 3.
Mr. Speaker: Kansas has one of the lowest if not the lowest total bonded debt among
all the states. Tell me the sense in mandating transfer of ``excess funds'' into a Debt Re-
duction Fund to pay off 4% debt, and incur penalties, when better judgment may dictate
funding public education, or special education, or home and community based services for
the frail-elderly or developmentally disabled. That is, unless you want to tie up money so it
can't be used for tax reduction, or unless you never intended the fund be used at all. SB 487 isn't even politically correct, and I vote no.--Ward Loyd
On motion of Rep. Glasscock, the House went into Committee of the Whole, with Rep.
Sloan in the chair.
COMMITTEE OF THE WHOLE
On motion of Rep. Sloan, Committee of the Whole report, as follows, was adopted:
Recommended that SB 472 be passed.
Committee report to HB 2603 be adopted; and the bill be passed as amended.
Committee report to SB 347 be adopted; also, on motion of Rep. Campbell to amend,
the motion did not prevail.
Also, roll call was required on motion of Rep. Spangler to strike the enacting clause on SB 347.
On roll call, the vote was: Yeas 51; Nays 66; Present but not voting: 0; Absent or not
voting: 8.
Absent or not voting: Adkins, Geringer, Holmes, Howell, Light, Mayans, Neufeld,
Swenson.
The motion of Rep. Spangler did not prevail.
Also, on motion to recommend SB 347 favorably for passage, the motion did not prevail.
On motion of Rep. Allen SB 470 be amended on page 1, following line 14, by inserting
the following:
``New Section 1. (a) No person in the custody of the state or any political subdivision
thereof shall be released from custody until the custodian of such person has queried avail-
able state and federal criminal databases to determine whether there are any outstanding
warrants for such person's arrest.
(b) This section shall be part of and supplemental to the Kansas code of criminal
procedure.'';
By renumbering the remaining sections accordingly;
In the title, in line 11, following the semicolon, by inserting ``relating to arrest warrants;'';
Also, on motion of Rep. Campbell SB 470 be amended on page 1, after line 14, by
inserting the following:
``Section 1. On and after July 1, 2000, K.S.A. 21-4001 is hereby amended to read as
follows: 21-4001. (a) Eavesdropping is knowingly and without lawful authority:
(1) Entering into a private place with intent to listen surreptitiously to private conver-
sations or to observe the personal conduct of any other person or persons therein;
(2) Installing or using outside a private place any device for hearing, recording, ampli-
fying or broadcasting sounds originating in such place, which sounds would not ordinarily
be audible or comprehensible outside, without the consent of the person or persons entitled
to privacy therein; or
(3) Installing or using any device or equipment for the interception of any telephone,
telegraph or other wire communication without the consent of the person in possession or
control of the facilities for such wire communication.; or
(4) installing or using a concealed camcorder, motion picture camera or photographic camera of any type, to secretly videotape, film, photograph or record by electronic means, another, identifiable person under or through the clothing being worn by that other person or another, identifiable person who is nude or in a state of undress, for the purpose of viewing the body of, or the undergarments worn by, that other person, without the consent or knowl- edge of that other person, with the intent to invade the privacy of that other person, under circumstances in which the other person has a reasonable expectation of privacy.
(b) A ``private place'' within the meaning of this section is a place where one may
reasonably expect to be safe from uninvited intrusion or surveillance, but does not include
a place to which the public has lawful access.
(c) It shall not be unlawful for an operator of a switchboard, or any officer, employee,
or agent of any public utility providing telephone communications service, whose facilities
are used in the transmission of a communication, to intercept, disclose or use that com-
munication in the normal course of employment while engaged in any activity which is
incident to the rendition of public utility service or to the protection of the rights of property
of such public utility.
(d) Eavesdropping is a class A nonperson misdemeanor.'';
And by renumbering sections accordingly;
On page 11, in line 40, after ``K.S.A.'' where it appears for the first time, by inserting ``21-
4001 and'';
On page 1, in the title, in line 11, after ``sentencing'' by inserting ``and eavesdropping'';
also in line 11, after ``K.S.A.'' where it appears for the first time, by inserting ``21-4001 and'';
Also, on motion of Rep. Haley to amend SB 470, the motion was withdrawn.
Also, on motion of Rep. Spangler SB 470 be amended on page 11, following line 39, by
inserting:
``Sec. 3. K.S.A. 1999 Supp. 41-727 is hereby amended to read as follows: 41-727. (a)
Except with regard to serving of alcoholic liquor or cereal malt beverage as permitted by
K.S.A. 41-308a, 41-308b, 41-2610 or 41-2704 and sections 4, 5 and 6, and amendments
thereto, no person under 21 years of age shall possess, consume, obtain, purchase or attempt
to obtain or purchase alcoholic liquor or cereal malt beverage except as authorized by law.
(b) Violation of this section by a person 18 or more years of age but less than 21 years
of age is a class C misdemeanor for which the minimum fine is $200.
(c) Any person less than 18 years of age who violates this section is a juvenile offender
under the Kansas juvenile justice code. Upon adjudication thereof and as a condition of
disposition, the court shall require the offender to pay a fine of not less than $200 nor more
than $500.
(d) In addition to any other penalty provided for a violation of this section, the court
may order the offender to do either or both of the following:
(1) Perform 40 hours of public service; or
(2) attend and satisfactorily complete a suitable educational or training program dealing
with the effects of alcohol or other chemical substances when ingested by humans.
(e) This section shall not apply to the possession and consumption of cereal malt bev-
erage by a person under the legal age for consumption of cereal malt beverage when such
possession and consumption is permitted and supervised, and such beverage is furnished,
by the person's parent or legal guardian.
(f) Any city ordinance or county resolution prohibiting the acts prohibited by this section
shall provide a minimum penalty which is not less than the minimum penalty prescribed by
this section.
(g) This section shall be part of and supplemental to the Kansas liquor control act.
New Sec. 4. (a) Any person listed in subsections (b)(1), (b)(2) or (b)(3) may engage or
direct a minor to violate the provisions of the Kansas liquor control act in order to develop
a program or system which determines and encourages compliance with the provisions of
such act prohibiting the furnishing or sale of alcoholic liquor to minors or the consumption
of alcoholic liquor by minors.
(b) No person shall engage or direct a minor to violate any provision of the Kansas
liquor control act for purposes of determining compliance with the provisions of such act
unless such person has procured the written consent of a parent or guardian of the minor
to so engage or direct the minor and such person is:
(1) An officer having authority to enforce the provisions of this act;
(2) an authorized representative of the attorney general, a county attorney or a district
attorney; or
(3) a licensee under the Kansas liquor control act or such licensee's designee pursuant
to a self-compliance program designed to increase compliance with the provisions of the
Kansas liquor control act.
New Sec. 5. (a) Any person listed in subsections (b)(1), (b)(2) or (b)(3) may engage or
direct a minor to violate the provisions of the club and drinking establishment act in order
to develop a program or system which determines and encourages compliance with the
provisions of such act prohibiting the furnishing or sale of alcoholic liquor to minors or the
consumption of alcoholic liquor by minors.
(b) No person shall engage or direct a minor to violate any provision of the club and
drinking establishment act for purposes of determining compliance with the provisions of
such act unless such person has procured the written consent of a parent or guardian of the
minor to so engage or direct the minor and such person is:
(1) An officer having authority to enforce the provisions of this act;
(2) an authorized representative of the attorney general, a county attorney or a district
attorney; or
(3) a licensee or permittee under the club and drinking establishment act or such li-
censee's or permittee's designee pursuant to a self-compliance program designed to increase
compliance with the provisions of the club and drinking establishment act.
New Sec. 6. (a) Any person listed in subsections (b)(1), (b)(2) or (b)(3) may engage or
direct a minor to violate the provisions of K.S.A. 41-2701, et seq., and amendments thereto,
in order to develop a program or system which determines and encourages compliance with
the provisions thereof prohibiting the furnishing or sale of cereal malt beverages to minors
or the consumption of cereal malt beverages by minors.
(b) No person shall engage or direct a minor to violate any provision of K.S.A. 41-2701 et seq., and amendments thereto, for purposes of determining compliance therewith unless
such person has procured the written consent of a parent or guardian of the minor to so
engage or direct the minor and such person is:
(1) An officer having authority to enforce the provisions of this act;
(2) an authorized representative of the attorney general, a county attorney or a district
attorney; or
(3) a licensee under the provisions of K.S.A. 41-2701, et seq., and amendments thereto,
or such licensee's designee pursuant to a self-compliance program designed to increase
compliance with the provisions of K.S.A. 41-2701 et seq., and amendments thereto.'';
By renumbering sections accordingly;
Also on page 11, in line 40, following ``22-3717'' by inserting ``and 41-727'';
In the title, in line 11, prior to the semicolon, by inserting ``; relating to violation of the
liquor law''; in line 12, following ``22-3717'' by inserting ``and 41-727'';
Also, on motion of Rep. Haley SB 470 be amended on page 1, following line 14, by
inserting:
``Section 1. K.S.A. 1999 Supp. 21-4310 is hereby amended to read as follows: 21-4310.
(a) Cruelty to animals is:
(1) Intentionally killing, injuring, maiming, torturing, burning or mutilating or causing serious physical injury to any animal;
(2) abandoning or leaving any animal in any place without making provisions for its
proper care;
(3) having physical custody of any animal and failing to provide such food, potable water,
protection from the elements, opportunity for exercise and other care as is needed for the
health or well-being of such kind of animal; or
(4) intentionally using a wire, pole, stick, rope or any other object to cause an equine
to lose its balance or fall, for the purpose of sport or entertainment.; or
(5) causing any physical injury other than serious physical injury to any animal.
(b) The provisions of this section shall not apply to:
(1) Normal or accepted veterinary practices;
(2) bona fide experiments carried on by commonly recognized research facilities;
(3) killing, attempting to kill, trapping, catching or taking of any animal in accordance
with the provisions of chapter 32 or chapter 47 of the Kansas Statutes Annotated;
(4) rodeo practices accepted by the rodeo cowboys' association;
(5) the humane killing of an animal which is diseased or disabled beyond recovery for
any useful purpose, or the humane killing of animals for population control, by the owner
thereof or the agent of such owner residing outside of a city or the owner thereof within a
city if no animal shelter, pound or licensed veterinarian is within the city, or by a licensed
veterinarian at the request of the owner thereof, or by any officer or agent of an incorporated
humane society, the operator of an animal shelter or pound, a local or state health officer
or a licensed veterinarian three business days following the receipt of any such animal at
such society, shelter or pound;
(6) with respect to farm animals, normal or accepted practices of animal husbandry;
(7) the killing of any animal by any person at any time which may be found outside of
the owned or rented property of the owner or custodian of such animal and which is found
injuring or posing a threat to any person, farm animal or property;
(8) an animal control officer trained by a licensed veterinarian in the use of a tranquilizer
gun, using such gun with the appropriate dosage for the size of the animal, when such
animal is vicious or could not be captured after reasonable attempts using other methods;
or
(9) laying an equine down for medical or identification purposes.
(c) As used in this section, ``equine'' means a horse, pony, mule, jenny, donkey or hinny.
(d) (1) Cruelty to animals as described in subsection (a)(1) is a nonperson felony. Upon conviction of cruelty to animals as described in subsection (a)(1), a person shall be sentenced to not less than 30 days nor more than one year's imprisonment and fined not less than $100.
(2) Cruelty to animals as described in subsections (a)(2), (a)(3), (a)(4) and (a)(5) is a
class A nonperson misdemeanor.'';
By renumbering the remaining sections accordingly;
On page 11, in line 40, following ``Supp.'', by inserting ``21-4310 and'';
On page 1, in the title, in line 11, following the semicolon, by inserting ``relating to cruelty
to animals;''; also in line 11, following ``Supp.'', by inserting ``21-4310 and''; and SB 470 be
passed as amended.
Committee report to SB 412 be adopted; also, on motion of Rep. Tomlinson be amended
on page 3, in line 38, by striking ``statute book'' and inserting ``Kansas register'';
Also, on motion of Rep. Campbell SB 412 be amended on page 1, following line 27, by
inserting the following:
``Sec. 2. K.S.A. 9-805 is hereby amended to read as follows: 9-805. Every bank and
every trust company shall keep a full and correct list of the names and addresses of all of
its stockholders, and the number of shares owned by each. This list of stockholders shall be
kept and maintained in the office where its business is transacted, and during the business
hours of such bank or trust company, the same shall be subject to the inspection of all
stockholders. The president or cashier of every bank and every trust company shall submit
to the commissioner on or before the thirty-first day of January 31 of each year a list of
such stockholders as of the first day of such calendar year, the correctness of which shall be
verified under oath, except that the names and addresses of all stockholders owning less than 5% of the capital stock of such bank shall be confidential and shall not be subject to disclosure under the provisions of the open records act.'';
By renumbering the remaining sections accordingly;
On page 3, in line 24, by striking ``4'' and inserting ``5''; in line 35, following ``K.S.A.''
where it appears for the first time, by inserting ``9-805 and'';
In the title, in line 15, following ``K.S.A.'' where it appears for the first time by inserting
``9-805 and''; and SB 412 be passed as amended.
Committee report to SB 445 be adopted; and the bill be passed as amended.
REPORTS OF STANDING COMMITTEES
The Committee on Governmental Organization and Elections recommends SB 566
be passed.
The Committee on Governmental Organization and Elections recommends SB 515
be passed and, because the committee is of the opinion that the bill is of a noncontroversial
nature, be placed on the consent calendar.
The Committee on Governmental Organization and Elections recommends SB 517
be amended on page 2, in line 15, before ``the'' by inserting ``extra copies, retaining an
inventory of at least 10 volumes for distribution without charge. Five years after the pub-
lication date of any volume, the secretary of state may dispose of''; and the bill be passed
as amended.
The Committee on Health and Human Services recommends HB 2814 be amended
on page 1, in line 22, by striking ``social and rehabilitation services'' and inserting ``aging'';
in line 26, by striking ``social and rehabilitation services'' and inserting ``aging''; in line 28,
after the colon, by starting a new paragraph to be designated as follows:
``(1)'';
Also on page 1, in line 29, by striking ``not less than 62 years of age'' and inserting: ``67
years of age or older except that commencing with fiscal year 2003 an individual to be
eligible for the program must be 65 years of age or older''; also in line 29, after the comma,
by inserting the following:
``(2) unless modified as provided in section 2 and amendments thereto,'';
Also on page 1, in line 31, after ``$16,000'' by inserting the following: ``,
(3) an eligible individual must not qualify for any other local, state or federal prescription
drug program,
(4) an eligible individual must not be covered under any private prescription reimburse-
ment plan'';
Also on page 1, also in line 31, after the comma, by inserting the following:
``(5) an eligible individual must not have voluntarily canceled a local, state or federal
prescription drug program or a private prescription reimbursement plan within six months
prior to application for enrollment in the senior pharmacy assistance program,
(6) unless modified as provided in section 2 and amendments thereto,'';
Also on page 1, in line 32, before ``a'' by starting a new paragraph to be designated as
follows:
``(7)'';
Also on page 1, in line 33, by striking all before ``shall'' and inserting in lieu thereof: ``in
an amount not to exceed 30% of the cost of each prescription''; also in line 33, before ``a''
by inserting the following:
``(8) unless modified as provided in section 2 and amendments thereto,'';
Also on page 1, in line 34, before ``the'' by starting a new paragraph to be designated as
follows:
``(9)'';
Also on page 1, in line 36, preceding ``the'' where it appears for the last time, by starting
a new paragraph to be designated as follows:
``(10)'';
Also on page 1, in line 38, by striking ``social and rehabilitation services'' and inserting
``aging''; by striking all in lines 42 and 43;
On page 2, by striking all in line 1; in line 2, after ``shall'' by inserting ``be from the interest
or earnings from the senior services trust fund and shall''; after line 3, by inserting the
following:
``Sec. 2. (a) To implement the provisions of this act, the secretary of aging is hereby
authorized to negotiate and enter into contracts for the performance of the powers, duties
and functions established under this act, receive grants, gifts or donations from the United
States government, or its agencies, or any other source whatsoever for the purposes of the
program established under this act. Any moneys so received shall be deposited in the state
treasury and credited to the senior services trust fund.
(b) In the event that the secretary determines that the funds appropriated may not meet
projected expenditures for the fiscal year, the secretary may:
(1) Adjust the maximum benefit set forth in subsection (b) of section 1 and amendments
thereto;
(2) adjust the income eligibility levels set forth in subsection (b) of section 1 and amend-
ments thereto;
(3) adjust the copayment level as set forth in subsection (b) of section 1 and amendments
thereto;
(4) limit the program to maintenance drugs; or
(5) establish a period of open enrollment which shall be not less than 30 days and which
shall include an enrollment period for those who become age eligible during the year. Any
such changes will be effective 30 days after notice of the same is published in the Kansas
register.
(c) The secretary of social and rehabilitation services shall serve as fiscal agent for the
senior pharmacy assistance program pursuant to agreements entered into with the secretary
of aging.'';
And by renumbering the remaining section accordingly;
Also on page 2, in line 4, after ``after'' by inserting ``April 1, 2001, and'';
In the title, in line 17, by striking ``social and re-''; in line 18, by striking all before the
period and inserting ``aging''; and the bill be passed as amended.
The Committee on Taxation recommends HB 2678 be amended on page 6, after line
3, by inserting a new section read as follows:
``Sec. 2. K.S.A. 1999 Supp. 79-3606 is hereby amended to read as follows: 79-3606.
The following shall be exempt from the tax imposed by this act:
(a) All sales of motor-vehicle fuel or other articles upon which a sales or excise tax has
been paid, not subject to refund, under the laws of this state except cigarettes as defined
by K.S.A. 79-3301 and amendments thereto, cereal malt beverages and malt products as
defined by K.S.A. 79-3817 and amendments thereto, including wort, liquid malt, malt syrup
and malt extract, which is not subject to taxation under the provisions of K.S.A. 79-41a02
and amendments thereto, motor vehicles taxed pursuant to K.S.A. 79-5117, and amend-
ments thereto, tires taxed pursuant to K.S.A. 1999 Supp. 65-3424d, and amendments
thereto, and drycleaning and laundry services taxed pursuant to K.S.A. 1999 Supp. 65-
34,150, and amendments thereto;
(b) all sales of tangible personal property or service, including the renting and leasing
of tangible personal property, purchased directly by the state of Kansas, a political subdi-
vision thereof, other than a school or educational institution, or purchased by a public or
private nonprofit hospital or public hospital authority or nonprofit blood, tissue or organ
bank and used exclusively for state, political subdivision, hospital or public hospital authority
or nonprofit blood, tissue or organ bank purposes, except when: (1) Such state, hospital or
public hospital authority is engaged or proposes to engage in any business specifically taxable
under the provisions of this act and such items of tangible personal property or service are
used or proposed to be used in such business, or (2) such political subdivision is engaged
or proposes to engage in the business of furnishing gas, water, electricity or heat to others
and such items of personal property or service are used or proposed to be used in such
business;
(c) all sales of tangible personal property or services, including the renting and leasing
of tangible personal property, purchased directly by a public or private elementary or sec-
ondary school or public or private nonprofit educational institution and used primarily by
such school or institution for nonsectarian programs and activities provided or sponsored
by such school or institution or in the erection, repair or enlargement of buildings to be
used for such purposes. The exemption herein provided shall not apply to erection, con-
struction, repair, enlargement or equipment of buildings used primarily for human
habitation;
(d) all sales of tangible personal property or services purchased by a contractor for the
purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, fur-
nishing or remodeling facilities for any public or private nonprofit hospital or public hospital
authority, public or private elementary or secondary school or a public or private nonprofit
educational institution, which would be exempt from taxation under the provisions of this
act if purchased directly by such hospital or public hospital authority, school or educational
institution; and all sales of tangible personal property or services purchased by a contractor
for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging,
furnishing or remodeling facilities for any political subdivision of the state, the total cost of
which is paid from funds of such political subdivision and which would be exempt from
taxation under the provisions of this act if purchased directly by such political subdivision.
Nothing in this subsection or in the provisions of K.S.A. 12-3418 and amendments thereto,
shall be deemed to exempt the purchase of any construction machinery, equipment or tools
used in the constructing, equipping, reconstructing, maintaining, repairing, enlarging, fur-
nishing or remodeling facilities for any political subdivision of the state. As used in this
subsection, K.S.A. 12-3418 and 79-3640, and amendments thereto, ``funds of a political
subdivision'' shall mean general tax revenues, the proceeds of any bonds and gifts or grants-
in-aid. Gifts shall not mean funds used for the purpose of constructing, equipping, recon-
structing, repairing, enlarging, furnishing or remodeling facilities which are to be leased to
the donor. When any political subdivision of the state, public or private nonprofit hospital
or public hospital authority, public or private elementary or secondary school or public or
private nonprofit educational institution shall contract for the purpose of constructing,
equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling fa-
cilities, it shall obtain from the state and furnish to the contractor an exemption certificate
for the project involved, and the contractor may purchase materials for incorporation in
such project. The contractor shall furnish the number of such certificate to all suppliers
from whom such purchases are made, and such suppliers shall execute invoices covering
the same bearing the number of such certificate. Upon completion of the project the con-
tractor shall furnish to the political subdivision, hospital or public hospital authority, school
or educational institution concerned a sworn statement, on a form to be provided by the
director of taxation, that all purchases so made were entitled to exemption under this sub-
section. As an alternative to the foregoing procedure, any such contracting entity may apply
to the secretary of revenue for agent status for the sole purpose of issuing and furnishing
project exemption certificates to contractors pursuant to rules and regulations adopted by
the secretary establishing conditions and standards for the granting and maintaining of such
status. All invoices shall be held by the contractor for a period of five years and shall be
subject to audit by the director of taxation. If any materials purchased under such a certif-
icate are found not to have been incorporated in the building or other project or not to have
been returned for credit or the sales or compensating tax otherwise imposed upon such
materials which will not be so incorporated in the building or other project reported and
paid by such contractor to the director of taxation not later than the 20th day of the month
following the close of the month in which it shall be determined that such materials will not
be used for the purpose for which such certificate was issued, the political subdivision,
hospital or public hospital authority, school or educational institution concerned shall be
liable for tax on all materials purchased for the project, and upon payment thereof it may
recover the same from the contractor together with reasonable attorney fees. Any contractor
or any agent, employee or subcontractor thereof, who shall use or otherwise dispose of any
materials purchased under such a certificate for any purpose other than that for which such
a certificate is issued without the payment of the sales or compensating tax otherwise im-
posed upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor,
shall be subject to the penalties provided for in subsection (g) of K.S.A. 79-3615, and amend-
ments thereto;
(e) all sales of tangible personal property or services purchased by a contractor for the
erection, repair or enlargement of buildings or other projects for the government of the
United States, its agencies or instrumentalities, which would be exempt from taxation if
purchased directly by the government of the United States, its agencies or instrumentalities.
When the government of the United States, its agencies or instrumentalities shall contract
for the erection, repair, or enlargement of any building or other project, it shall obtain from
the state and furnish to the contractor an exemption certificate for the project involved, and
the contractor may purchase materials for incorporation in such project. The contractor
shall furnish the number of such certificates to all suppliers from whom such purchases are
made, and such suppliers shall execute invoices covering the same bearing the number of
such certificate. Upon completion of the project the contractor shall furnish to the govern-
ment of the United States, its agencies or instrumentalities concerned a sworn statement,
on a form to be provided by the director of taxation, that all purchases so made were entitled
to exemption under this subsection. As an alternative to the foregoing procedure, any such
contracting entity may apply to the secretary of revenue for agent status for the sole purpose
of issuing and furnishing project exemption certificates to contractors pursuant to rules and
regulations adopted by the secretary establishing conditions and standards for the granting
and maintaining of such status. All invoices shall be held by the contractor for a period of
five years and shall be subject to audit by the director of taxation. Any contractor or any
agent, employee or subcontractor thereof, who shall use or otherwise dispose of any ma-
terials purchased under such a certificate for any purpose other than that for which such a
certificate is issued without the payment of the sales or compensating tax otherwise imposed
upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor, shall
be subject to the penalties provided for in subsection (g) of K.S.A. 79-3615 and amendments
thereto;
(f) tangible personal property purchased by a railroad or public utility for consumption
or movement directly and immediately in interstate commerce;
(g) sales of aircraft including remanufactured and modified aircraft, sales of aircraft
repair, modification and replacement parts and sales of services employed in the remanu-
facture, modification and repair of aircraft sold to persons using directly or through an
authorized agent such aircraft and aircraft repair, modification and replacement parts as
certified or licensed carriers of persons or property in interstate or foreign commerce under
authority of the laws of the United States or any foreign government or sold to any foreign
government or agency or instrumentality of such foreign government and all sales of aircraft,
aircraft parts, replacement parts and services employed in the remanufacture, modification
and repair of aircraft for use outside of the United States;
(h) all rentals of nonsectarian textbooks by public or private elementary or secondary
schools;
(i) the lease or rental of all films, records, tapes, or any type of sound or picture tran-
scriptions used by motion picture exhibitors;
(j) meals served without charge or food used in the preparation of such meals to em-
ployees of any restaurant, eating house, dining car, hotel, drugstore or other place where
meals or drinks are regularly sold to the public if such employees' duties are related to the
furnishing or sale of such meals or drinks;
(k) any motor vehicle, semitrailer or pole trailer, as such terms are defined by K.S.A.
8-126 and amendments thereto, or aircraft sold and delivered in this state to a bona fide
resident of another state, which motor vehicle, semitrailer, pole trailer or aircraft is not to
be registered or based in this state and which vehicle, semitrailer, pole trailer or aircraft will
not remain in this state more than 10 days;
(l) all isolated or occasional sales of tangible personal property, services, substances or
things, except isolated or occasional sale of motor vehicles specifically taxed under the pro-
visions of subsection (o) of K.S.A. 79-3603 and amendments thereto;
(m) all sales of tangible personal property which become an ingredient or component
part of tangible personal property or services produced, manufactured or compounded for
ultimate sale at retail within or without the state of Kansas; and any such producer, manu-
facturer or compounder may obtain from the director of taxation and furnish to the supplier
an exemption certificate number for tangible personal property for use as an ingredient or
component part of the property or services produced, manufactured or compounded;
(n) all sales of tangible personal property which is consumed in the production, man-
ufacture, processing, mining, drilling, refining or compounding of tangible personal prop-
erty, the treating of by-products or wastes derived from any such production process, the
providing of services or the irrigation of crops for ultimate sale at retail within or without
the state of Kansas; and any purchaser of such property may obtain from the director of
taxation and furnish to the supplier an exemption certificate number for tangible personal
property for consumption in such production, manufacture, processing, mining, drilling,
refining, compounding, treating, irrigation and in providing such services;
(o) all sales of animals, fowl and aquatic plants and animals, the primary purpose of
which is use in agriculture or aquaculture, as defined in K.S.A. 47-1901, and amendments
thereto, the production of food for human consumption, the production of animal, dairy,
poultry or aquatic plant and animal products, fiber or fur, or the production of offspring for
use for any such purpose or purposes;
(p) all sales of drugs, as defined by K.S.A. 65-1626 and amendments thereto, dispensed
pursuant to a prescription order, as defined by K.S.A. 65-1626 and amendments thereto,
by a licensed practitioner or a mid-level practitioner as defined by K.S.A. 65-1626, and
amendments thereto;
(q) all sales of insulin dispensed by a person licensed by the state board of pharmacy to
a person for treatment of diabetes at the direction of a person licensed to practice medicine
by the board of healing arts;
(r) all sales of prosthetic and orthopedic appliances prescribed in writing by a person
licensed to practice the healing arts, dentistry or optometry. For the purposes of this sub-
section, the term prosthetic and orthopedic appliances means any apparatus, instrument,
device, or equipment used to replace or substitute for any missing part of the body; used
to alleviate the malfunction of any part of the body; or used to assist any disabled person in
leading a normal life by facilitating such person's mobility; such term shall include acces-
sories attached or to be attached to motor vehicles, but such term shall not include motor
vehicles or personal property which when installed becomes a fixture to real property;
(s) all sales of tangible personal property or services purchased directly by a groundwater
management district organized or operating under the authority of K.S.A. 82a-1020 et seq.
and amendments thereto, which property or services are used in the operation or mainte-
nance of the district;
(t) all sales of farm machinery and equipment or aquaculture machinery and equipment,
repair and replacement parts therefor and services performed in the repair and maintenance
of such machinery and equipment. For the purposes of this subsection the term ``farm
machinery and equipment or aquaculture machinery and equipment'' shall include machin-
ery and equipment used in the operation of Christmas tree farming but shall not include
any passenger vehicle, truck, truck tractor, trailer, semitrailer or pole trailer, other than a
farm trailer, as such terms are defined by K.S.A. 8-126 and amendments thereto. Each
purchaser of farm machinery and equipment or aquaculture machinery and equipment
exempted herein must certify in writing on the copy of the invoice or sales ticket to be
retained by the seller that the farm machinery and equipment or aquaculture machinery
and equipment purchased will be used only in farming, ranching or aquaculture production.
Farming or ranching shall include the operation of a feedlot and farm and ranch work for
hire and the operation of a nursery;
(u) all leases or rentals of tangible personal property used as a dwelling if such tangible
personal property is leased or rented for a period of more than 28 consecutive days;
(v) all sales of food products to any contractor for use in preparing meals for delivery
to homebound elderly persons over 60 years of age and to homebound disabled persons or
to be served at a group-sitting at a location outside of the home to otherwise homebound
elderly persons over 60 years of age and to otherwise homebound disabled persons, as all
or part of any food service project funded in whole or in part by government or as part of
a private nonprofit food service project available to all such elderly or disabled persons
residing within an area of service designated by the private nonprofit organization, and all
sales of food products for use in preparing meals for consumption by indigent or homeless
individuals whether or not such meals are consumed at a place designated for such purpose;
(w) all sales of natural gas, electricity, heat and water delivered through mains, lines or
pipes: (1) To residential premises for noncommercial use by the occupant of such premises;
(2) for agricultural use and also, for such use, all sales of propane gas; (3) for use in the
severing of oil; and (4) to any property which is exempt from property taxation pursuant to
K.S.A. 79-201b Second through Sixth. As used in this paragraph, ``severing'' shall have the
meaning ascribed thereto by subsection (k) of K.S.A. 79-4216, and amendments thereto;
(x) all sales of propane gas, LP-gas, coal, wood and other fuel sources for the production
of heat or lighting for noncommercial use of an occupant of residential premises;
(y) all sales of materials and services used in the repairing, servicing, altering, maintain-
ing, manufacturing, remanufacturing, or modification of railroad rolling stock for use in
interstate or foreign commerce under authority of the laws of the United States;
(z) all sales of tangible personal property and services purchased directly by a port
authority or by a contractor therefor as provided by the provisions of K.S.A. 12-3418 and
amendments thereto;
(aa) all sales of materials and services applied to equipment which is transported into
the state from without the state for repair, service, alteration, maintenance, remanufacture
or modification and which is subsequently transported outside the state for use in the trans-
mission of liquids or natural gas by means of pipeline in interstate or foreign commerce
under authority of the laws of the United States;
(bb) all sales of used mobile homes or manufactured homes. As used in this subsection:
(1) ``Mobile homes'' and ``manufactured homes'' shall have the meanings ascribed thereto
by K.S.A. 58-4202 and amendments thereto; and (2) ``sales of used mobile homes or man-
ufactured homes'' means sales other than the original retail sale thereof;
(cc) all sales of tangible personal property or services purchased for the purpose of and
in conjunction with constructing, reconstructing, enlarging or remodeling a business or retail
business which meets the requirements established in K.S.A. 74-50,115 and amendments
thereto, and the sale and installation of machinery and equipment purchased for installation
at any such business or retail business. When a person shall contract for the construction,
reconstruction, enlargement or remodeling of any such business or retail business, such
person shall obtain from the state and furnish to the contractor an exemption certificate for
the project involved, and the contractor may purchase materials, machinery and equipment
for incorporation in such project. The contractor shall furnish the number of such certificates
to all suppliers from whom such purchases are made, and such suppliers shall execute
invoices covering the same bearing the number of such certificate. Upon completion of the
project the contractor shall furnish to the owner of the business or retail business a sworn
statement, on a form to be provided by the director of taxation, that all purchases so made
were entitled to exemption under this subsection. All invoices shall be held by the contractor
for a period of five years and shall be subject to audit by the director of taxation. Any
contractor or any agent, employee or subcontractor thereof, who shall use or otherwise
dispose of any materials, machinery or equipment purchased under such a certificate for
any purpose other than that for which such a certificate is issued without the payment of
the sales or compensating tax otherwise imposed thereon, shall be guilty of a misdemeanor
and, upon conviction therefor, shall be subject to the penalties provided for in subsection
(g) of K.S.A. 79-3615 and amendments thereto. As used in this subsection, ``business'' and
``retail business'' have the meanings respectively ascribed thereto by K.S.A. 74-50,114 and
amendments thereto;
(dd) all sales of tangible personal property purchased with food stamps issued by the
United States department of agriculture;
(ee) all sales of lottery tickets and shares made as part of a lottery operated by the state
of Kansas;
(ff) on and after July 1, 1988, all sales of new mobile homes or manufactured homes to
the extent of 40% of the gross receipts, determined without regard to any trade-in allowance,
received from such sale. As used in this subsection, ``mobile homes'' and ``manufactured
homes'' shall have the meanings ascribed thereto by K.S.A. 58-4202 and amendments
thereto;
(gg) all sales of tangible personal property purchased in accordance with vouchers issued
pursuant to the federal special supplemental food program for women, infants and children;
(hh) all sales of medical supplies and equipment purchased directly by a nonprofit skilled
nursing home or nonprofit intermediate nursing care home, as defined by K.S.A. 39-923,
and amendments thereto, for the purpose of providing medical services to residents thereof.
This exemption shall not apply to tangible personal property customarily used for human
habitation purposes;
(ii) all sales of tangible personal property purchased directly by a nonprofit organization
for nonsectarian comprehensive multidiscipline youth development programs and activities
provided or sponsored by such organization, and all sales of tangible personal property by
or on behalf of any such organization. This exemption shall not apply to tangible personal
property customarily used for human habitation purposes;
(jj) all sales of tangible personal property or services, including the renting and leasing
of tangible personal property, purchased directly on behalf of a community-based mental
retardation facility or mental health center organized pursuant to K.S.A. 19-4001 et seq.,
and amendments thereto, and licensed in accordance with the provisions of K.S.A. 75-3307b
and amendments thereto. This exemption shall not apply to tangible personal property
customarily used for human habitation purposes;
(kk) on and after January 1, 1989, all sales of machinery and equipment used directly
and primarily for the purposes of manufacturing, assembling, processing, finishing, storing,
warehousing or distributing articles of tangible personal property in this state intended for
resale by a manufacturing or processing plant or facility or a storage, warehousing or dis-
tribution facility, and all sales of repair and replacement parts and accessories purchased
for such machinery and equipment:
(1) For purposes of this subsection, machinery and equipment shall be deemed to be
used directly and primarily in the manufacture, assemblage, processing, finishing, storing,
warehousing or distributing of tangible personal property where such machinery and equip-
ment is used during a manufacturing, assembling, processing or finishing, storing, ware-
housing or distributing operation:
(A) To effect a direct and immediate physical change upon the tangible personal
property;
(B) to guide or measure a direct and immediate physical change upon such property
where such function is an integral and essential part of tuning, verifying or aligning the
component parts of such property;
(C) to test or measure such property where such function is an integral part of the
production flow or function;
(D) to transport, convey or handle such property during the manufacturing, processing,
storing, warehousing or distribution operation at the plant or facility; or
(E) to place such property in the container, package or wrapping in which such property
is normally sold or transported.
(2) For purposes of this subsection ``machinery and equipment used directly and pri-
marily'' shall include, but not be limited to:
(A) Mechanical machines or components thereof contributing to a manufacturing, as-
sembling or finishing process;
(B) molds and dies that determine the physical characteristics of the finished product
or its packaging material;
(C) testing equipment to determine the quality of the finished product;
(D) computers and related peripheral equipment that directly control or measure the
manufacturing process or which are utilized for engineering of the finished product; and
(E) computers and related peripheral equipment utilized for research and development
and product design.
(3) ``Machinery and equipment used directly and primarily'' shall not include:
(A) Hand tools;
(B) machinery, equipment and tools used in maintaining and repairing any type of ma-
chinery and equipment;
(C) transportation equipment not used in the manufacturing, assembling, processing,
furnishing, storing, warehousing or distributing process at the plant or facility;
(D) office machines and equipment including computers and related peripheral equip-
ment not directly and primarily used in controlling or measuring the manufacturing process;
(E) furniture and buildings; and
(F) machinery and equipment used in administrative, accounting, sales or other such
activities of the business;
(4) for purposes of this subsection, ``repair and replacement parts and accessories''
means all parts and accessories for exempt machinery and equipment, including but not
limited to dies, jigs, molds, and patterns which are attached to exempt machinery or which
are otherwise used in production, short-lived replaceable parts that can be readily detached
from exempt machinery or equipment, such as belts, drill bits, grinding wheels, cutting bars
and saws, and other replacement parts for production equipment, including refractory brick
and other refractory items for kiln equipment used in production operations;
(ll) all sales of educational materials purchased for distribution to the public at no charge
by a nonprofit corporation organized for the purpose of encouraging, fostering and con-
ducting programs for the improvement of public health;
(mm) all sales of seeds and tree seedlings; fertilizers, insecticides, herbicides, germi-
cides, pesticides and fungicides; and services, purchased and used for the purpose of pro-
ducing plants in order to prevent soil erosion on land devoted to agricultural use;
(nn) except as otherwise provided in this act, all sales of services rendered by an ad-
vertising agency or licensed broadcast station or any member, agent or employee thereof;
(oo) all sales of tangible personal property purchased by a community action group or
agency for the exclusive purpose of repairing or weatherizing housing occupied by low
income individuals;
(pp) all sales of drill bits and explosives actually utilized in the exploration and produc-
tion of oil or gas;
(qq) all sales of tangible personal property and services purchased by a nonprofit mu-
seum or historical society or any combination thereof, including a nonprofit organization
which is organized for the purpose of stimulating public interest in the exploration of space
by providing educational information, exhibits and experiences, which is exempt from fed-
eral income taxation pursuant to section 501(c)(3) of the federal internal revenue code of
1986;
(rr) all sales of tangible personal property which will admit the purchaser thereof to any
annual event sponsored by a nonprofit organization which is exempt from federal income
taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986;
(ss) all sales of tangible personal property and services purchased by a public broad-
casting station licensed by the federal communications commission as a noncommercial
educational television or radio station;
(tt) all sales of tangible personal property and services purchased by or on behalf of a
not-for-profit corporation which is exempt from federal income taxation pursuant to section
501(c)(3) of the federal internal revenue code of 1986, for the sole purpose of constructing
a Kansas Korean War memorial;
(uu) all sales of tangible personal property and services purchased by or on behalf of
any rural volunteer fire-fighting organization for use exclusively in the performance of its
duties and functions;
(vv) all sales of tangible personal property purchased by any of the following organiza-
tions which are exempt from federal income taxation pursuant to section 501 (c)(3) of the
federal internal revenue code of 1986, for the following purposes, and all sales of any such
property by or on behalf of any such organization for any such purpose:
(1) The American Heart Association, Kansas Affiliate, Inc. for the purposes of providing
education, training, certification in emergency cardiac care, research and other related serv-
ices to reduce disability and death from cardiovascular diseases and stroke;
(2) the Kansas Alliance for the Mentally Ill, Inc. for the purpose of advocacy for persons
with mental illness and to education, research and support for their families;
(3) the Kansas Mental Illness Awareness Council for the purposes of advocacy for per-
sons who are mentally ill and to education, research and support for them and their families;
(4) the American Diabetes Association Kansas Affiliate, Inc. for the purpose of elimi-
nating diabetes through medical research, public education focusing on disease prevention
and education, patient education including information on coping with diabetes, and pro-
fessional education and training;
(5) the American Lung Association of Kansas, Inc. for the purpose of eliminating all
lung diseases through medical research, public education including information on coping
with lung diseases, professional education and training related to lung disease and other
related services to reduce the incidence of disability and death due to lung disease;
(6) the Kansas chapters of the Alzheimer's Disease and Related Disorders Association,
Inc. for the purpose of providing assistance and support to persons in Kansas with Alzhei-
mer's disease, and their families and caregivers; and
(ww) all sales of tangible personal property purchased by the Habitat for Humanity for
the exclusive use of being incorporated within a housing project constructed by such
organization.
(xx) all sales of tangible personal property and services purchased by a nonprofit zoo
which is exempt from federal income taxation pursuant to section 501(c)(3) of the federal
internal revenue code of 1986, or on behalf of such zoo by an entity itself exempt from
federal income taxation pursuant to section 501(c)(3) of the federal internal revenue code
of 1986 contracted with to operate such zoo and all sales of tangible personal property or
services purchased by a contractor for the purpose of constructing, equipping, reconstruct-
ing, maintaining, repairing, enlarging, furnishing or remodeling facilities for any nonprofit
zoo which would be exempt from taxation under the provisions of this section if purchased
directly by such nonprofit zoo or the entity operating such zoo. Nothing in this subsection
shall be deemed to exempt the purchase of any construction machinery, equipment or tools
used in the constructing, equipping, reconstructing, maintaining, repairing, enlarging, fur-
nishing or remodeling facilities for any nonprofit zoo. When any nonprofit zoo shall contract
for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging,
furnishing or remodeling facilities, it shall obtain from the state and furnish to the contractor
an exemption certificate for the project involved, and the contractor may purchase materials
for incorporation in such project. The contractor shall furnish the number of such certificate
to all suppliers from whom such purchases are made, and such suppliers shall execute
invoices covering the same bearing the number of such certificate. Upon completion of the
project the contractor shall furnish to the nonprofit zoo concerned a sworn statement, on a
form to be provided by the director of taxation, that all purchases so made were entitled to
exemption under this subsection. All invoices shall be held by the contractor for a period
of five years and shall be subject to audit by the director of taxation. If any materials pur-
chased under such a certificate are found not to have been incorporated in the building or
other project or not to have been returned for credit or the sales or compensating tax
otherwise imposed upon such materials which will not be so incorporated in the building
or other project reported and paid by such contractor to the director of taxation not later
than the 20th day of the month following the close of the month in which it shall be deter-
mined that such materials will not be used for the purpose for which such certificate was
issued, the nonprofit zoo concerned shall be liable for tax on all materials purchased for the
project, and upon payment thereof it may recover the same from the contractor together
with reasonable attorney fees. Any contractor or any agent, employee or subcontractor
thereof, who shall use or otherwise dispose of any materials purchased under such a certif-
icate for any purpose other than that for which such a certificate is issued without the
payment of the sales or compensating tax otherwise imposed upon such materials, shall be
guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties
provided for in subsection (g) of K.S.A. 79-3615, and amendments thereto;
(yy) all sales of tangible personal property and services purchased by a parent-teacher
association or organization, and all sales of tangible personal property by or on behalf of
such association or organization;
(zz) all sales of machinery and equipment purchased by over-the-air, free access radio
or television station which is used directly and primarily for the purpose of producing a
broadcast signal or is such that the failure of the machinery or equipment to operate would
cause broadcasting to cease. For purposes of this subsection, machinery and equipment
shall include, but not be limited to, that required by rules and regulations of the federal
communications commission, and all sales of electricity which are essential or necessary for
the purpose of producing a broadcast signal or is such that the failure of the electricity would
cause broadcasting to cease;
(aaa) all sales of tangible personal property and services purchased by a religious or-
ganization which is exempt from federal income taxation pursuant to section 501(c)(3) of
the federal internal revenue code, and used exclusively for religious purposes, and all sales
of tangible personal property or services purchased by a contractor for the purpose of
constructing, equipping, reconstructing, maintaining, repairing, enlarging, furnishing or re-
modeling facilities for any such organization which would be exempt from taxation under
the provisions of this section if purchased directly by such organization. Nothing in this
subsection shall be deemed to exempt the purchase of any construction machinery, equip-
ment or tools used in the constructing, equipping, reconstructing, maintaining, repairing,
enlarging, furnishing or remodeling facilities for any such organization. When any such
organization shall contract for the purpose of constructing, equipping, reconstructing, main-
taining, repairing, enlarging, furnishing or remodeling facilities, it shall obtain from the state
and furnish to the contractor an exemption certificate for the project involved, and the
contractor may purchase materials for incorporation in such project. The contractor shall
furnish the number of such certificate to all suppliers from whom such purchases are made,
and such suppliers shall execute invoices covering the same bearing the number of such
certificate. Upon completion of the project the contractor shall furnish to such organization
concerned a sworn statement, on a form to be provided by the director of taxation, that all
purchases so made were entitled to exemption under this subsection. All invoices shall be
held by the contractor for a period of five years and shall be subject to audit by the director
of taxation. If any materials purchased under such a certificate are found not to have been
incorporated in the building or other project or not to have been returned for credit or the
sales or compensating tax otherwise imposed upon such materials which will not be so
incorporated in the building or other project reported and paid by such contractor to the
director of taxation not later than the 20th day of the month following the close of the month
in which it shall be determined that such materials will not be used for the purpose for
which such certificate was issued, such organization concerned shall be liable for tax on all
materials purchased for the project, and upon payment thereof it may recover the same
from the contractor together with reasonable attorney fees. Any contractor or any agent,
employee or subcontractor thereof, who shall use or otherwise dispose of any materials
purchased under such a certificate for any purpose other than that for which such a certif-
icate is issued without the payment of the sales or compensating tax otherwise imposed upon
such materials, shall be guilty of a misdemeanor and, upon conviction therefor, shall be
subject to the penalties provided for in subsection (g) of K.S.A. 79-3615, and amendments
thereto. Sales tax paid on and after July 1, 1998, but prior to the effective date of this act
upon the gross receipts received from any sale exempted by the amendatory provisions of
this subsection shall be refunded. Each claim for a sales tax refund shall be verified and
submitted to the director of taxation upon forms furnished by the director and shall be
accompanied by any additional documentation required by the director. The director shall
review each claim and shall refund that amount of sales tax paid as determined under the
provisions of this subsection. All refunds shall be paid from the sales tax refund fund upon
warrants of the director of accounts and reports pursuant to vouchers approved by the
director or the director's designee;
(bbb) all sales of food for human consumption by an organization which is exempt from
federal income taxation pursuant to section 501 (c)(3) of the federal internal revenue code
of 1986, pursuant to a food distribution program which offers such food at a price below
cost in exchange for the performance of community service by the purchaser thereof;
(ccc) on and after July 1, 1999, all sales of tangible personal property and services
purchased by a primary care clinic or health center the primary purpose of which is to
provide services to medically underserved individuals and families, and which is exempt
from federal income taxation pursuant to section 501 (c)(3) of the federal internal revenue
code, and all sales of tangible personal property or services purchased by a contractor for
the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging,
furnishing or remodeling facilities for any such clinic or center which would be exempt from
taxation under the provisions of this section if purchased directly by such clinic or center.
Nothing in this subsection shall be deemed to exempt the purchase of any construction
machinery, equipment or tools used in the constructing, equipping, reconstructing, main-
taining, repairing, enlarging, furnishing or remodeling facilities for any such clinic or center.
When any such clinic or center shall contract for the purpose of constructing, equipping,
reconstructing, maintaining, repairing, enlarging, furnishing or remodeling facilities, it shall
obtain from the state and furnish to the contractor an exemption certificate for the project
involved, and the contractor may purchase materials for incorporation in such project. The
contractor shall furnish the number of such certificate to all suppliers from whom such
purchases are made, and such suppliers shall execute invoices covering the same bearing
the number of such certificate. Upon completion of the project the contractor shall furnish
to such clinic or center concerned a sworn statement, on a form to be provided by the
director of taxation, that all purchases so made were entitled to exemption under this sub-
section. All invoices shall be held by the contractor for a period of five years and shall be
subject to audit by the director of taxation. If any materials purchased under such a certif-
icate are found not to have been incorporated in the building or other project or not to have
been returned for credit or the sales or compensating tax otherwise imposed upon such
materials which will not be so incorporated in the building or other project reported and
paid by such contractor to the director of taxation not later than the 20th day of the month
following the close of the month in which it shall be determined that such materials will not
be used for the purpose for which such certificate was issued, such clinic or center concerned
shall be liable for tax on all materials purchased for the project, and upon payment thereof
it may recover the same from the contractor together with reasonable attorney fees. Any
contractor or any agent, employee or subcontractor thereof, who shall use or otherwise
dispose of any materials purchased under such a certificate for any purpose other than that
for which such a certificate is issued without the payment of the sales or compensating tax
otherwise imposed upon such materials, shall be guilty of a misdemeanor and, upon con-
viction therefor, shall be subject to the penalties provided for in subsection (g) of K.S.A.
79-3615, and amendments thereto;
(ddd) on and after January 1, 1999, and before January 1, 2000, all sales of materials
and services purchased by any class II or III railroad as classified by the federal surface
transportation board for the construction, renovation, repair or replacement of class II or
III railroad track and facilities used directly in interstate commerce. In the event any such
track or facility for which materials and services were purchased sales tax exempt is not
operational for five years succeeding the allowance of such exemption, the total amount of
sales tax which would have been payable except for the operation of this subsection shall
be recouped in accordance with rules and regulations adopted for such purpose by the
secretary of revenue; and
(eee) on and after January 1, 1999, and before January 1, 2000, all sales of materials
and services purchased for the original construction, reconstruction, repair or replacement
of grain storage facilities, including railroad sidings providing access thereto.;
(fff) all sales of tangible personal property and services purchased by an organization the primary purpose of which is to prevent cruelty to animals, and which is exempt from federal income taxation pursuant to section 501 (c)(3) of the federal internal revenue code, and all sales of tangible personal property or services purchased by a contractor for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, fur- nishing or remodeling facilities for any such organization which would be exempt from taxation under the provisions of this section if purchased directly by such organization. Nothing in this subsection shall be deemed to exempt the purchase of any construction machinery, equipment or tools used in the constructing, equipping, reconstructing, main- taining, repairing, enlarging, furnishing or remodeling facilities for any such organization. When any such organization shall contract for the purpose of constructing, equipping, re- constructing, maintaining, repairing, enlarging, furnishing or remodeling facilities, it shall obtain from the state and furnish to the contractor an exemption certificate for the project involved, and the contractor may purchase materials for incorporation in such project. The contractor shall furnish the number of such certificate to all suppliers from whom such purchases are made, and such suppliers shall execute invoices covering the same bearing the number of such certificate. Upon completion of the project the contractor shall furnish to such organization concerned a sworn statement, on a form to be provided by the director of taxation, that all purchases so made were entitled to exemption under this subsection. All invoices shall be held by the contractor for a period of five years and shall be subject to audit by the director of taxation. If any materials purchased under such a certificate are found not to have been incorporated in the building or other project or not to have been returned for credit or the sales or compensating tax otherwise imposed upon such materials which will not be so incorporated in the building or other project reported and paid by such contractor to the director of taxation not later than the 20th day of the month following the close of the month in which it shall be determined that such materials will not be used for the purpose for which such certificate was issued, such organization concerned shall be liable for tax on all materials purchased for the project, and upon payment thereof it may recover the same from the contractor together with reasonable attorney fees. Any contractor or any agent, employee or subcontractor thereof, who shall use or otherwise dispose of any materials purchased under such a certificate for any purpose other than that for which such a certif- icate is issued without the payment of the sales or compensating tax otherwise imposed upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties provided for in subsection (g) of K.S.A. 79-3615, and amendments thereto; and
(ggg) all sales of tangible personal property and services purchased by or on behalf of the Kansas Academy of Science which is exempt from federal income taxation pursuant to section 501 (c)(3) of the federal internal revenue code of 1986, and used solely by such academy for the preparation, publication and dissemination of educational materials.'';
By renumbering existing sections accordingly;
Also on page 6, in line 4, by striking ``is'' and inserting ``and 79-3606'';
In the title, in line 9, by striking all after ``sales''; in line 10, by striking ``services'' and
inserting ``therefrom''; also, in line 10, after ``and'' by inserting ``79-3606 and''; in line 11,
by striking ``section'' and inserting ``sections''; and the bill be passed as amended.
The Committee on Taxation recommends SB 410, as amended by Senate Committee,
be amended on page 4, in line 21, by striking ``14'' and inserting ``13'';
On page 5, in line 1, by striking the first ``or'' and inserting ``for''; in line 16, by striking
the semicolon and inserting a comma; in line 18, by striking ``K.S.A. 79-3296c'' and inserting
``section 11''; in line 33, before ``fails'' by inserting ``or payor'';
On page 6, in line 16, by striking ``K.S.A. 79-3296b'' and inserting ``section 10''; in line
17, before ``annual'' by inserting ``or payee's'';
On page 7, in line 36, after ``employer'' by inserting ``or payor'';
On page 8, in line 12, after ``employer'' by inserting ``or payor''; in line 17, after ``employer''
by inserting ``or payor'';
On page 12, after line 1, by inserting ``(3) No penalty assessed hereunder shall be col-
lected if the taxpayer has had the unpaid balance of tax abated on appeal.'';
On page 13, after line 42, by inserting ``(i) No penalty assessed hereunder shall be
collected if the taxpayer has had the unpaid balance of tax abated on appeal.'';
On page 17, after line 25, by inserting the following:
``Sec. 22. K.S.A. 79-1009 is hereby amended to read as follows: 79-1009. To the end
that the state of Kansas and the political subdivisions thereof may receive all taxes due in
every instance, including contributions due under the employment security law, contractors,
who are nonresidents of this state, desiring to engage in, prosecute, follow or carry on the
business of contracting as defined in this act shall register with the secretary of revenue or
the secretary's designee for each contract where the total contract price or compensation
to be received amounts to more than $10,000, except that a foreign corporation authorized
to do business in this state shall not be required to register under the provisions of this act. The secretary or the secretary's designee shall charge a fee for such registration in the amount of $10 for each such contract. All such fees received by the secretary or the sec- retary's designee shall be deposited on Monday of each week with the state treasurer. The state treasurer shall thereupon credit the amount of such fees to the state general fund.
Sec. 23. K.S.A. 79-2974 is hereby amended to read as follows: 79-2974. On and after January 1, 1998, theThe secretary of revenue shall make available in a medium readily
accessible to taxpayers all administrative rulings of the department of revenue which affect
the duties and responsibilities of taxpayers pursuant to any law administered by the depart-
ment of revenue. Private letter rulings and written final determinations of the secretary or the designee of the secretary shall be provided in such a manner as to conceal the identity
of the specific taxpayer for whom the private letter ruling was issued. The secretary shall
cause to be published in the Kansas register a description of each such administrative ruling
within 30 days of such ruling together with specific instructions as to how the complete text
of the administrative ruling may be obtained. As used in this section, administrative rulings
shall include revenue notices, revenue rulings, information guides, policy directives, private
letter rulings, written final determinations of the secretary or the designee of the secretary
and directives of the division of property valuation or its director.'';
Also, on page 17, in line 26, after ``K.S.A.'' by inserting ``79-1009, 79-2974,'';
By renumbering existing sections accordingly;
In the title, in line 11, after ``K.S.A.'' by inserting ``79-1009, 79-2974,''; and the bill be
passed as amended.
The Committee on Taxation recommends SB 411, as amended by Senate Committee,
be amended on page 3, by striking all in lines 3 through 12; in line 13, by striking ``(c)'' and
inserting ``(b)''; in line 22, before the semicolon by inserting ``or the property constitutes
single family residential property''; in line 29, before the period by inserting ``or the property
constitutes single family residential property''; in line 30, by striking ``(d)'' and inserting
``(c)''; by striking all in line 33; in line 34, by striking ``property, the'' and inserting ``The'';
in line 39, by striking ``(e)'' and inserting ``(d)'';
On page 4, in line 7, by striking ``(f)'' and inserting ``(e)''; in line 19, by striking ``(g)'' and
inserting ``(f)''; in line 28, by striking ``(h)'' and inserting ``(g)''; and the bill be passed as
amended.
The Committee on Transportation recommends SB 540 be passed.
The Committee on Transportation recommends HB 2923, be amended by adoption of
the amendments recommended by House Committee on Transportation as reported in the
Journal the House on February 23, 2000, and the bill, as printed with amendments by House
Committee, be further amended on page 1, in line 42, by striking ``submitted to the''; by
striking all in line 43;
On page 2, in line 1, by striking all preceding ``ap-''; and the bill be passed as amended.
Upon unanimous consent, the House referred back to the regular order of business,
Introduction of Bills and Concurrent Resolutions.
INTRODUCTION OF BILLS AND CONCURRENT RESOLUTIONS
The following bills were thereupon introduced and read by title:
HB 3042, An act establishing an intergovernmental transfer program; concerning nursing
facilities owned and operated by units of government; relating to the federal medical assis-
tance (medicaid) program; establishing an intergovernmental transfer fund, an intergovern-
mental transfer administration fund, a long-term care loan fund, a senior services trust fund
and a senior services fund within the state treasury; authorizing certain participation agree-
ments, loans, grants and contracts; amending K.S.A. 75-5321a and repealing the existing
section, by Committee on Appropriations.
HB 3043, An act concerning retirement and pensions; relating to the Kansas public
employees retirement system and systems thereunder; retirement options; payment of lump
sum amount; amending K.S.A. 1999 Supp. 20-2610a, 74-4918, 74-4964 and 74-4964a and
repealing the existing sections, by Committee on Appropriations.
REPORT ON ENGROSSED BILLS HB 2838 reported correctly engrossed March 15, 2000.
REPORT ON ENROLLED BILLS Sub. HB 2322; HB 2655 reported correctly enrolled, properly signed and presented to
the governor on March 16, 2000.
On motion of Rep. Glasscock, the House adjourned until 8:30 a.m., Friday, March 17,
2000.