January 13, 2000

Journal of the Senate

FOURTH DAY ______

Senate Chamber, Topeka, Kansas

Thursday, January 13, 2000--2:30 p.m.

The Senate was called to order by Vice-President Alicia L. Salisbury.

The roll was called with thirty-nine senators present.

Senator Oleen was excused.

Invocation by Chaplain Fred S. Hollomon:

Heavenly Father,

Whenever laws are being passed

Motions must be made.

And motions must be seconded

Before they make the grade.

It occurs to me, O God,

That when YOU make a motion,

Our job is to second it

With joy and great emotion.

For instance:

When you make a motion

That we should love each other,

That we should quickly second it,

Treating others as our brothers.

The problem as I see it

Is we want to make the motions,

And when You refuse to second them,

We raise a big commotion!

Help us realize, O God,

That Your motions are the best,

And when we're content to second them,

It's the sure way to success!

I pray in Jesus' Name,

AMEN

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

SB 412, An act concerning banks and banking; relating to rules and regulations of the
bank commissioner; establishing the state banking code; amending K.S.A. 9-1713 and K.S.A.
1999 Supp. 9-539 and repealing the existing sections, by Committee on Financial Institutions
and Insurance.

SENATE CONCURRENT RESOLTUION No. 1629--

By Committee on Assessment and Taxation

A PROPOSITION to amend section 1 of article 11 of the constitution of the state of Kansas, relating to the classification and taxation of aircraft and watercraft.

Be it resolved by the Legislature of the State of Kansas, two-thirds of the members elected
(or appointed) and qualified to the House of Representatives and two-thirds of the mem-
bers elected (or appointed) and qualified to the Senate concurring therein:

Section 1. The following proposition to amend the constitution of the state of Kansas
shall be submitted to the qualified electors of the state for their approval or rejection: Section
1 of article 11 of the constitution of the state of Kansas is hereby amended to read as follows:

``§ 1. System of taxation; classification; exemption. (a) The provisions of this subsec-
tion shall govern the assessment and taxation of property on and after January 1,
1993, and each year thereafter. Except as otherwise hereinafter specifically provided,
the legislature shall provide for a uniform and equal basis of valuation and rate of
taxation of all property subject to taxation. The legislature may provide for the clas-
sification and the taxation uniformly as to class of recreational vehicles, aircraft and
watercraft, as defined by the legislature, or may exempt such class from property
taxation and impose taxes upon another basis in lieu thereof. The provisions of this
subsection shall not be applicable to the taxation of motor vehicles, except as oth-
erwise hereinafter specifically provided, mineral products, money, mortgages, notes
and other evidence of debt and grain. Property shall be classified into the following
classes for the purpose of assessment and assessed at the percentage of value pre-
scribed therefor:

Class 1 shall consist of real property. Real property shall be further classified into seven
subclasses. Such property shall be defined by law for the purpose of subclassification and
assessed uniformly as to subclass at the following percentages of value:

(1) Real property used for residential purposes including multi-familyresidential real property and real property necessary to accom-modate a residential community of mobile or manufacturedhomes including the real property upon which such homes arelocated	111/2%
(2) Land devoted to agricultural use which shall be valued upon thebasis of its agricultural income or agricultural productivity pur-suant to section 12 of article 11 of the constitution	30%
(3) Vacant lots	12%
(4) Real property which is owned and operated by a not-for-profit or-ganization not subject to federal income taxation pursuant tosection 501 of the federal internal revenue code, and which isincluded in this subclass by law	12%
(5) Public utility real property, except railroad real property which shallbe assessed at the average rate that all other commercial andindustrial property is assessed	33%
(6) Real property used for commercial and industrial purposes andbuildings and other improvements located upon land devoted toagricultural use	25%
(7) All other urban and rural real property not otherwise specificallysubclassified	30%

Class 2 shall consist of tangible personal property. Such tangible personal property shall
be further classified into six subclasses, shall be defined by law for the purpose of subclas-
sification and assessed uniformly as to subclass at the following percentages of value:

(1)Mobile homes used for residential purposes	111/2%
(2) Mineral leasehold interests except oil leasehold interests the averagedaily production from which is five barrels or less, and naturalgas leasehold interests the average daily production from whichis 100 mcf or less, which shall be assessed at 25%	30%
(3) Public utility tangible personal property including inventoriesthereof, except railroad personal property including inventoriesthereof, which shall be assessed at the average rate all othercommercial and industrial property is assessed	33%
(4) All categories of motor vehicles not defined and specifically valuedand taxed pursuant to law enacted prior to January 1, 1985	30%
(5) Commercial and industrial machinery and equipment which, if itseconomic life is seven years or more, shall be valued at its retailcost when new less seven-year straight-line depreciation, orwhich, if its economic life is less than seven years, shall be valuedat its retail cost when new less straight-line depreciation over itseconomic life, except that, the value so obtained for such prop-erty, notwithstanding its economic life and as long as such prop-erty is being used, shall not be less than 20% of the retail costwhen new of such property	25%
(6) All other tangible personal property not otherwise specificallyclassified	30%

(b) All property used exclusively for state, county, municipal, literary, educational, sci-
entific, religious, benevolent and charitable purposes, farm machinery and equipment, mer-
chants' and manufacturers' inventories, other than public utility inventories included in
subclass (3) of class 2, livestock, and all household goods and personal effects not used for
the production of income, shall be exempted from property taxation.''

Sec. 2. The following statement shall be printed on the ballot with the amendment as
a whole:

``Explanatory statement. This amendment would allow the legislature to classify
and tax aircraft and watercraft upon a basis different from other property.

``A vote for this proposition would permit the legislature to provide for separate
classification and taxation of aircraft and watercraft and to exempt such property
from property taxation and impose taxes in lieu thereof.''

``A vote against this proposition would continue the taxation of aircraft and water-
craft in the same manner as all other property.''

Sec. 3. This resolution, if approved by two-thirds of the members elected (or appointed)
and qualified to the House of Representatives, and two-thirds of the members elected (or
appointed) and qualified to the Senate, shall be entered on the journals, together with the
yeas and nays. The secretary of state shall cause this resolution to be published as provided
by law and shall cause the proposed amendment to be submitted to the electors of the state
at the general election to be held on November 7, 2000.

REFERENCE OF BILLS AND CONCURRENT RESOLUTIONS
The following bills were referred to Committee as indicated:

Assessment and Taxation: SB 406, 407, 408, 409, 410, 411.

REFERRAL OF APPOINTMENTS
The following appointments made by the Governor and submitted to the senate for con-
firmation, were referred to Committees as indicated:

Secretary, Department of Aging:

Connie L. Hubbell, effective upon the date of confirmation by the Senate to serve at the
pleasure of the Governor.

(Public Health and Welfare) Secretary, Department of Agriculture

Jamie Clover Adams, effective upon the date of confirmation by the Senate to serve at
the pleasure of the Governor.

(Agriculture) State Bank Commissioner:

Franklin ``Lynn'' Nelson, effective upon the date of confirmation by the Senate to serve
at the pleasure of the Governor.

(Financial Institutions and Insurance) Secretary, Department of Health and Environment:

Clyde D. Graeber, effective upon the date of confirmation by the Senate to serve at the
pleasure of the Governor.

(Public Health and Welfare) Secretary, Department of Social and Rehabilitation Services:

Janet K. Schalansky, effective upon the date of confirmation by the Senate to serve at the
pleasure of the Governor.

(Public Health and Welfare) MESSAGE FROM THE GOVERNOR
January 12, 2000 Message to the Senate of the State of Kansas:

Enclosed herewith is Executive Order No. 00-01 for your information.

Bill Graves

Governor

The Vice-President announced Executive Order No. 00-01, an offer of reward leading to
the arrest and conviction of the murderer of William Fately, is on file in the Office of the
Secretary of the Senate and available for review at any time.

January 12, 2000 Message to the Senate of the State of Kansas:

Enclosed herewith is Executive Order No. 00-02 for your information.

Bill Graves

Governor

The Vice-President announced Executive Order No. 00-02, an offer of reward, leading
to the arrest and conviction of the murderer of Opal J. Trumpp, is on file in the Office of
the Secretary of the Senate and available for review at any time.

COMMUNICATIONS FROM STATE OFFICERS
KANSAS STATE UNIVERSITY RESEARCH AND EXTENSION January, 2000

Marc A. Johnson, Dean and Director, Kansas State University Agricultural Experiment
Station and Cooperative Extension Service, submitted a report to the Kansas Legislature on
Teamwork and Collaboration in Kansas.

DEPARTMENT OF ADMINISTRATION January 10, 2000

Secretary of Administration, Dan Stanley, as required in K.S.A. 75-37,110, submitted a
report on the activities of the Employee Award Board.

DEPARTMENT OF WILDLIFE & PARKS January 12, 2000

In accordance with K.S.A. 32-844 and 32-845, Steve Williams, Secretary, Kansas De-
partment of Wildlife & Parks, submitted a report regarding land acquisitions and lease
renewals.

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

On motion of Senator Emert the Senate adjourned until 9:00 a.m., Friday, January 14,
2000.

HELEN A. MORELAND, Journal Clerk.

PAT SAVILLE, Secretary of Senate.