March 14, 2000
Journal of the Senate
FORTY-FIFTH DAY
______
| Senate Chamber, Topeka, Kansas |
| Tuesday, March 14, 2000--2:30 p.m. |
The Senate was called to order by President Dick Bond.
The roll was called with thirty-nine senators present.
Senator Jones was excused.
President Bond introduced as guest chaplain, Rev. Ben Scott, Pastor of the East Side
Church of God in Christ, Topeka, who delivered the invocation:
God of grace and God of glory, we ask that You help us today to look in the right places for
fulfillment and joy.
Let us begin the quest with You and trust Your wisdom, so that when the days of opportunity
are past, we go out with joy and be filled with peace.
We ask Your blessing upon this Senate, the men, the women who put forth much time and
energy to make our neighborhoods, our cities, and our state to be the best they can be.
We look to You this afternoon for the assurance of Your presence.
We ask that Thou will lead us this week in an awareness of being Your children, teaching
us to respond to Your will in every appropriate way.
Hear us then, as we turn to You.
Where we ask wisely and in faith, grant us our petitions.
Where we ask foolish things, be kind.
Where we sadly omit, fill in.
Where our deepest-felt words are between the lines, listen carefully.
To this end we pray, Amen
INTRODUCTION OF BILLS AND CONCURRENT RESOLUTIONS
The following bills were introduced and read by title:
SB 661, An act concerning inspection of food processing plants and retail food stores;
authorizing the secretary of health and environment to fix, charge and collect certain fees,
by Committee on Ways and Means.
SB 662, An act concerning improvement and industrial districts; amending K.S.A. 19-
2786d and 19-2786e and K.S.A. 1999 Supp. 19-2755a and 19-2786j and repealing the
existing sections, by Committee on Ways and Means.
SENATE CONCURRENT RESOLUTION NO. 1644--
By Committee on Education
A CONCURRENT RESOLUTION urging the President and the Congress of the United
States to increase funding for special education from an average federal share of 12%
nationwide to the 40% level authorized by the Individuals with Disabilities Education
Act.
WHEREAS, In Brown v. Board of Education, a unanimous Supreme Court of the United
States recognized that education is perhaps the most important function of state and local
governments; in Wisconsin v. Yoder, the Supreme Court recognized that the provision of
public schools ranks at the very apex of the function of a state; in San Antonio Independent
School District v. Rodriquez, the Supreme Court refused to invalidate the Texas system of
financing its public schools opining that education is one of the most important services
performed by the state and declining to intrude in an area which traditionally has been
reserved for state legislatures; and
WHEREAS, The architects of America's Constitution and Bill of Rights constructed a
unique form of federalism under which the people delegated to the national government
certain limited powers while reserving all other authority to the states and the people; the
powers of the two government levels were carefully balanced and each had distinct roles
with most day-to-day functions being left at the level closest to the people; the founders
expected state power to rival national power; and
WHEREAS, America's unique form of federalism worked for a while, but has been
severely eroded over the years; the states have become enfeebled while the federal
government has consolidated power and now involves itself in every conceivable area of
governance, including the most local of concerns; nowhere is encroachment by the federal
government on states' rights more apparent than in the area of education, specifically special
education; and
WHEREAS, The states were and are well aware of the constitutional obligation to
provide public education for children with disabilities; many of the states enacted
constitutionally sound special education laws prior to enactment in 1975 by Congress of
Public Law 94-142, the Education for All Handicapped Children Act, known since 1990 as
the Individuals with Disabilities Education Act or IDEA; nearly six million American
children receive special education services provided by the states at a cost of almost $40
billion, only about $5.7 billion of which is federal money; and
WHEREAS, Enactment of the IDEA transferred decisions about the ways in which
special education services would be provided from state capitals to Washington, D.C.; in an
effort to alleviate the intrusion that transfer of control over special education had upon an
area traditionally reserved to the states, the Act authorized appropriation of a sum equal to
40% of the average per pupil expenditure for general education pupils; Congressional
appropriations have never come near the authorization level; and
WHEREAS, A recent report by the Kansas State Department of Education provided the
Kansas Legislature with the estimated special education expenditures in Kansas for fiscal
year 2001; the report estimated expenditures for special education in the amount of
$483,300,437, and was broken down by anticipated state, local, and federal aid percentages;
the report revealed that federal aid, including medicaid reimbursement of approximately
$16 million, would comprise only 11.7% of the total expenditures for special education; if
increased to the authorized 40% level, federal aid would increase from $56,500,000 to
$193,320,175; and
WHEREAS, The National Council on Disability recently reported that many children
with disabilities are receiving substandard schooling because the states are not complying
with federal rules on special education; the response of officials at the U.S. Department of
Education, the federal agency responsible for overseeing compliance with the IDEA, was
predictable, not an assertion that the agency would make an intense effort to get Congress
to provide assistance to the states in the form of increased dollars, at least to a level more
nearly approaching the 40% level of expenditures authorized for special education, but with
a threat to be more aggressive in monitoring and enforcing compliance; and
WHEREAS, In 1998, the Kansas Legislature adopted a concurrent resolution
memorializing the Congress to assume its fair share of the costs of special education services
by increasing funding to a level more nearly approaching the level authorized by the
Individuals with Disabilities Education Act; and
WHEREAS, Kansas Congressman Jerry Moran took heed of the Kansas Legislature's
resolution and wrote a letter to President Clinton. The letter, dated January 20, 2000, and
fully endorsed by the Kansas Legislature, contained the following excerpts:
``Dear Mr. President:
As you prepare for the State of the Union address and your budget submission to
Congress, I encourage you to place a high priority on funding special education. The
greatest issue facing Kansas Governor Bill Graves and the Kansas Legislature is finding
the necessary resources to meet the needs of Kansas students.
``Congress first mandated special education in 1975 and pledged to assist state and
local governments by paying 40 percent of the costs of educating students with
disabilities. Unfortunately, the federal government has never met its obligation.
``Mr. President, I share your goals of improving school facilities, hiring and training
more teachers and making better technology available to students, but rather than rolling
out a list of expensive new federal programs, let's go back and fulfill a commitment made
25 years ago to fund special education. Doing so would free up billions of dollars
nationwide that states could use to address their own unique education needs.
``As you prepare your budget and as you prepare to address the nation, I hope you
will make special education your priority. It is important, not only to those children who
participate in special education programs, but to every child whose education is so
important to the future of our country.''; and
WHEREAS, The Kansas Legislature has devoted considerable effort and a great amount
of time during the 2000 session in an attempt to address concerns regarding delivery of
special education services and to find some solution to the rapidly escalating costs of
providing such services; in the course of its study of the matter, the Legislature received
reports from the Kansas State Department of Education and from embattled providers of
special education services in the field; the reports were overwhelmingly disturbing and
revealed that from 1990 through 1998, Kansas realized a 29% increase in the number of
pupils with disabilities, a 32% increase in the number of professionals, and a 150% increase
in the number of paraprofessionals; one special education cooperative reported a 48%
increase in expenditures for special education from the 1990-91 school year through the
1999-2000 school year; school districts are experiencing continuing growth in the population
of children with severe disabilities, in the number of behavior disordered pupils and in other
high need populations of children, such as children with autism or traumatic brain injury,
who require high cost programs; the 1997 IDEA amendments added several new specific
disabling conditions; the quality and quantity of special education teachers is a major concern
as the growth in numbers of pupils and severity of disabilities increase and the pool of
trained teachers decreases; special education professionals face stress, burnout and
increased paperwork even though the 1997 amendments to the IDEA were supposed to
reduce paperwork; one director of special education services stated that he had been a
special education professional since 1972 and was more worried than in his whole career
about the increasing demands on the system to serve more pupils, with more severe
disabilities, to higher standards than ever before, with fewer trained, skilled teachers and
decreasing financial resources; and
WHEREAS, On February 7, 2000, President Clinton sent Congress a $1.84 trillion
budget proposal that devotes more than $300 billion to more than 100 new programs; while
many of the centerpieces of the budget proposal may be praiseworthy, legislators and school
officials in Kansas would rather the Congress, in drafting its own spending proposals, honor
the commitment to fully fund the federal share of special education costs before adopting
any spending proposal that is dedicated to new programs: Now, therefore,
Be it resolved by the Senate of the State of Kansas, the House of Representatives concurring
therein: That the Legislature, in recognition that children with disabilities have a
fundamental right to be provided with a free and appropriate public education and that the
Congress of the United States has enacted a federal law for the purpose of assisting the
states in honoring that fundamental right and in the belief that projected federal budget
surpluses present the federal government with the tremendous opportunity to assume its
fair share of the costs of providing special education services, hereby strongly urges the
President and the Congress of the United States to put a new twist on the old joke about
federal officials appearing in a state and saying ``we're here to help'' by increasing funding
for the provision of special education services for children with disabilities from the average
federal share of 12% nationwide to the 40% level authorized by the Individuals with
Disabilities Education Act; and
Be it further resolved: That the Secretary of State is hereby directed to send enrolled
copies of this resolution to The Hon. William Clinton at 1600 Pennsylvania Ave.,
Washington, D.C. 20500; The Hon. Richard Riley at U.S. Dept. of Education, 400 Maryland
Ave. NW, Washington, D.C. 20202; The Hon. Pat Roberts at 302 Hart Senate O.B.,
Washington, D.C. 20510; The Hon. Sam Brownback at 303 Hart Senate O.B., Washington,
D.C. 20510; The Hon. Jerry Moran at 1519 Longworth House O.B., Washington, D.C.
20515; The Hon. Jim Ryun at 330 Cannon House O.B., Washington D.C. 20515; The Hon.
Dennis Moore at 506 Cannon House O.B., Washington, D.C. 20515; The Hon. Todd Tiahrt
at 428 Cannon House O.B., Washington, D.C. 20515; The Hon. James Jeffords at 728 Hart
Senate O.B., Washington, D.C. 20510; The Hon. Edward Kennedy at 315 Russell Senate
O.B., Washington, D.C. 20510; The Hon. Ted Stevens at 522 Hart Senate O.B., Washington,
D.C. 20510; The Hon. Robert Byrd at 311 Hart Senate O.B., Washington, D.C. 20510; The
Hon. Arlen Specter at 711 Hart Senate O.B., Washington, D.C. 20510; The Hon. Tom
Harkin at 731 Hart Senate O.B., Washington, D.C. 20510; The Hon. William Goodling at
2107 Rayburn House O.B., Washington, D.C. 20510; The Hon. William Clay at 2306
Rayburn House O.B., Washington, D.C. 20515; The Hon. Bill Young at 2407 Rayburn
House O.B., Washington, D.C., 20515; The Hon. David R. Obey at 2314 Rayburn House
O.B., Washington, D.C. 20515; Gore 2000 Incorporated at P.O. Box 330087, Nashville, TN
37203; Bush for President Incorporated at 301 Congress Avenue, Suite 200, Austin, TX
78701; National Conference of State Legislatures at 444 North Capitol Street, N.W., Suite
515, Washington, D.C. 20001, and at 1560 Broadway, Suite 700, Denver, CO 80202;
American Legislative Exchange Council at 910 17th Street N.W., Fifth Floor, Washington,
D.C. 20006; Council of State Governments at Hall of the States, Suite 401, Washington,
D.C. 20001; National Governors' Association at Hall of States, 444 North Capitol Street,
Washington, D.C. 20001.
REFERENCE OF BILLS AND CONCURRENT RESOLUTIONS
The following bills were referred to Committee as indicated:
Ways and Means: SB 660; SCR 1643.
CHANGE OF REFERENCE
The President withdrew SB 381 from the calendar under the heading of General Orders,
and rereferred the bill to the Committee on Ways and Means.
MESSAGE FROM THE GOVERNOR
March 14, 2000
To the Senate of the State of Kansas:
Submitted herewith for confirmation by the Senate is an appointment made by me as
Governor of the State of Kansas as of March 14, 2000, pursuant to law.
Bill Graves
Governor
Member, Kansas Corporation Commission, John R. Wine, pursuant to the authority vested
in me by KSA 74-601, effective upon the date of confirmation by the Senate to serve a four-
year term expiring March 15, 2004.
COMMUNICATIONS FROM STATE OFFICERS
KANSAS DEPARTMENT OF COMMERCE & HOUSING
Trade Development Division
March 10, 2000
Gary Sherrer, Lt. Governor/Secretary submitted the State of Kansas 1999 Export Statistics
report.
The President announced the above report is on file in the office of the Secretary of the
Senate and is available for review at any time.
MESSAGE FROM THE HOUSE
Announcing passage of HB 2017, 2724.
Also, passage of SB 451, 459, 460, 489, 498.
Also, passage of SB 500, as amended.
Adoption of SCR 1630.
The House concurs in Senate amendments to HB 2655.
The House adopts the conference report on Substitute HB 2322.
INTRODUCTION OF HOUSE BILLS AND CONCURRENT RESOLUTIONS
HB 2017, 2724 were thereupon introduced and read by title.
REMOVE FROM CONSENT CALENDAR
An objection having been made to HB 2844, 2928 appearing on the Consent Calendar,
the President directed the bills be removed and placed on the calendar under the heading
of General Orders.
CONSIDERATION OF MOTIONS AND SENATE RESOLUTIONS
The motion made by Senator Hensley on Monday, March 13, 2000 to withdraw SB 389
from the Committee on Elections and Local Government was withdrawn.
INTRODUCTION OF MOTIONS AND SENATE RESOLUTIONS
Mr. President:
Pursuant to Rule 11 of the Senate Rules, I want to make a motion to withdraw Senate Bill
450 from committee. It is my understanding that such a motion shall be made in writing,
giving the reasons for withdrawal from the committee.
Mr. President, I think we can all agree that providing a quality education to every Kansas
child should be one of our top priorities. One of the ways that we can do this is by giving
school districts the resources they need and the ability to plan their budgets ahead of time.
Accordingly, I move that Senate Bill 450 be withdrawn from the Senate Committee
Education and be placed on the calendar under the order of business General Orders. I am
making this motion so that the Senate may vote on this bill, which would increase the base
aid per pupil by $50.00 for FY 2001.
Last year, Kansas made an historic commitment to K-12 education when the Legislature
approved, and Governor Graves signed into law, a bill to provide a $50 increase in base aid
per pupil funding for two consecutive years. This action meant that for the first time since
the 1992 school finance reform we endorsed multi-year funding on the base.
Earlier this session, the Governor attempted to retreat from this commitment when he
proposed to revise the FY 2000 budget by reducing the $50 on the base for the current
school year by $13.Fortunately, the Legislature realized how important this commitment is
and kept the $50 increase in the FY 2000 budget. Those of us on this side of the aisle
supported this position. The question is, will we keep our promise of $50 for next school
year?
Governor Graves has said he thought that ``two years of funding for K-12 was one of the
worst decisions we made last session.'' Mr. President, I disagree. I believe it was one of the
best decisions the Legislature has ever made. The Governor also said he will not support
multi-year funding again. If we can finance a transportation plan for ten years, surely we
can provide schools the funding they need to plan for two years.
Senate Democrats know how important multi-year funding is to schools. It gives school
districts the ability to plan ahead, allowing them to know what resources will be available
to them in upcoming years. If this body is truly committed to providing quality education
to Kansas schoolchildren, then it will pass Senate Bill 450 and continue the historic
commitment we made last session. Failure to do so will just give the people of Kansas
further evidence that this year's Senate is merely a ``Do-Nothing Senate.''
Anthony Hensley
State Senator
REPORTS OF STANDING COMMITTEES
Committee on Assessment and Taxation recommends HB 2011 as amended by House
Committee be amended on page 1, by striking all in lines 15 through 43;
By striking all on pages 2 through 12;
On page 13, by striking all in lines 1 through 36 and inserting the following:
``Section 1. 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
amendments 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
subdivision 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
secondary 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,
construction, 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,
furnishing 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, furnishing 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, reconstructing, 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 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 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 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.
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, 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 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;
(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
government 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 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
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
remanufacture, 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
transcriptions used by motion picture exhibitors;
(j) meals served without charge or food used in the preparation of such meals to
employees 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
provisions 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,
manufacturer 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,
manufacture, processing, mining, drilling, refining or compounding of tangible personal
property, 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
subsection, 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
accessories 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
maintenance 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
machinery 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,
maintaining, 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
transmission 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
manufactured 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
distribution 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
equipment is used during a manufacturing, assembling, processing or finishing, storing,
warehousing 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
primarily'' shall include, but not be limited to:
(A) Mechanical machines or components thereof contributing to a manufacturing,
assembling 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
machinery 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
equipment 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
(1) (A) all sales of machinery and equipment which are used in this state as an integral
or essential part of an integrated production operation by a manufacturing or processing
plant or facility;
(B) all sales of installation, repair and maintenance services performed on such
machinery and equipment; and
(C) all sales of repair and replacement parts and accessories purchased for such
machinery and equipment.
(2) For purposes of this subsection:
(A) ``Integrated production operation'' means an integrated series of operations engaged
in at a manufacturing or processing plant or facility to process, transform or convert tangible
personal property by physical, chemical or other means into a different form, composition
or character from that in which it originally existed. Integrated production operations shall
include: (i) Production line operations, including packaging operations; (ii) preproduction
operations to handle, store and treat raw materials; (iii) post production handling, storage,
warehousing and distribution operations; and (iv) waste, pollution and environmental
control operations, if any;
(B) ``production line'' means the assemblage of machinery and equipment at a
manufacturing or processing plant or facility where the actual transformation or processing
of tangible personal property occurs;
(C) ``manufacturing or processing plant or facility'' means a single, fixed location owned
or controlled by a manufacturing or processing business that consists of one or more
structures or buildings in a contiguous area where integrated production operations are
conducted to manufacture or process tangible personal property to be ultimately sold at
retail. A business may operate one or more manufacturing or processing plants or facilities
at different locations to manufacture or process a single product of tangible personal property
to be ultimately sold at retail;
(D) ``manufacturing or processing business'' means a business that utilizes an integrated
production operation to manufacture, process, fabricate, finish, or assemble items for
wholesale and retail distribution as part of what is commonly regarded by the general public
as an industrial manufacturing or processing operation or an agricultural commodity
processing operation. (i) Industrial manufacturing or processing operations include, by way
of illustration but not of limitation, the fabrication of automobiles, airplanes, machinery or
transportation equipment, the fabrication of metal, plastic, wood, or paper products,
electricity power generation, water treatment, petroleum refining, chemical production,
wholesale bottling, newspaper printing, ready mixed concrete production, and the
remanufacturing of used parts for wholesale or retail sale. Such processing operations shall
include operations at an oil well, gas well, mine or other excavation site where the oil, gas,
minerals, coal, clay, stone, sand or gravel that has been extracted from the earth is cleaned,
separated, crushed, ground, milled, screened, washed, or otherwise treated or prepared
before its transmission to a refinery or before any other wholesale or retail distribution. (ii)
Agricultural commodity processing operations include, by way of illustration but not of
limitation, meat packing, poultry slaughtering and dressing, processing and packaging farm
and dairy products in sealed containers for wholesale and retail distribution, feed grinding,
grain milling, frozen food processing, and grain handling, cleaning, blending, fumigation,
drying and aeration operations engaged in by grain elevators or other grain storage facilities.
(iii) Manufacturing or processing businesses do not include, by way of illustration but not
of limitation, nonindustrial businesses whose operations are primarily retail and that
produce or process tangible personal property as an incidental part of conducting the retail
business, such as retailers who bake, cook or prepare food products in the regular course of
their retail trade, grocery stores, meat lockers and meat markets that butcher or dress
livestock or poultry in the regular course of their retail trade, contractors who alter, service,
repair or improve real property, and retail businesses that clean, service or refurbish and
repair tangible personal property for its owner;
(E) ``repair and replacement parts and accessories'' means all parts and accessories for
exempt machinery and equipment, including, but not limited to, dies, jigs, molds, patterns
and safety devices that are attached to exempt machinery or that are otherwise used in
production, and parts and accessories that require periodic replacement such as belts, drill
bits, grinding wheels, grinding balls, cutting bars, saws, refractory brick and other refractory
items for exempt kiln equipment used in production operations;
(F) ``primary'' or ``primarily'' mean more than 50% of the time.
(3) For purposes of this subsection, machinery and equipment shall be deemed to be
used as an integral or essential part of an integrated production operation when used:
(A) To receive, transport, convey, handle, treat or store raw materials in preparation of
its placement on the production line;
(B) to transport, convey, handle or store the property undergoing manufacturing or
processing at any point from the beginning of the production line through any warehousing
or distribution operation of the final product that occurs at the plant or facility;
(C) to act upon, effect, promote or otherwise facilitate a physical change to the property
undergoing manufacturing or processing;
(D) to guide, control or direct the movement of property undergoing manufacturing or
processing;
(E) to test or measure raw materials, the property undergoing manufacturing or
processing or the finished product, as a necessary part of the manufacturer's integrated
production operations;
(F) to plan, manage, control or record the receipt and flow of inventories of raw
materials, consumables and component parts, the flow of the property undergoing
manufacturing or processing and the management of inventories of the finished product;
(G) to produce energy for, lubricate, control the operating of or otherwise enable the
functioning of other production machinery and equipment and the continuation of
production operations;
(H) to package the property being manufactured or processed in a container or wrapping
in which such property is normally sold or transported;
(I) to transmit or transport electricity, coke, gas, water, steam or similar substances used
in production operations from the point of generation, if produced by the manufacturer or
processor at the plant site, to that manufacturer's production operation; or, if purchased or
delivered from offsite, from the point where the substance enters the site of the plant or
facility to that manufacturer's production operations;
(J) to cool, heat, filter, refine or otherwise treat water, steam, acid, oil, solvents or other
substances that are used in production operations;
(K) to provide and control an environment required to maintain certain levels of air
quality, humidity or temperature in special and limited areas of the plant or facility, where
such regulation of temperature or humidity is part of and essential to the production process;
(L) to treat, transport or store waste or other byproducts of production operations at
the plant or facility; or
(M) to control pollution at the plant or facility where the pollution is produced by the
manufacturing or processing operation.
(4) The following machinery, equipment and materials shall be deemed to be exempt
even though it may not otherwise qualify as machinery and equipment used as an integral
or essential part of an integrated production operation: (A) Computers and related peripheral
equipment that are utilized by a manufacturing or processing business for engineering of
the finished product or for research and development or product design; (B) machinery and
equipment that is utilized by a manufacturing or processing business to manufacture or
rebuild tangible personal property that is used in manufacturing or processing operations,
including tools, dies, molds, forms and other parts of qualifying machinery and equipment;
(C) portable plants for aggregate concrete, bulk cement and asphalt including mobile cement
mixer trucks; (D) industrial fixtures, devices, support facilities and special foundations
necessary for manufacturing and production operations, and materials and other tangible
personal property sold for the purpose of fabricating such fixtures, devices, facilities and
foundations. An exemption certificate for such purchases shall be signed by the manufacturer
or processor. If the fabricator purchases such material, the fabricator shall also sign the
exemption certificate; and (E) a manufacturing or processing business' laboratory equipment
that is not located at the plant or facility, but that would otherwise qualify for exemption
under subsection (3)(E).
(5) ``Machinery and equipment used as an integral or essential part of an integrated
production operation'' shall not include:
(A) Machinery and equipment used for nonproduction purposes, including, but not
limited to, machinery and equipment used for plant security, fire prevention, first aid,
accounting, administration, record keeping, advertising, marketing, sales or other related
activities, plant cleaning, plant communications, and employee work scheduling;
(B) machinery, equipment and tools used primarily in maintaining and repairing any
type of machinery and equipment or the building and plant;
(C) transportation equipment not primarily used in a production, warehousing or
material handling operation at the plant or facility;
(D) office machines and equipment including computers and related periheral
equipment not used directly and primarily to control or measure the manufacturing process;
(E) furniture and other furnishings;
(F) buildings, other than exempt machinery and equipment that is permanently affixed
to or becomes a physical part of the building, and any other part of real estate that is not
otherwise exempt;
(G) building fixtures that are not integral to the manufacturing operation, such as utility
systems for heating, ventilation, air conditioning, communications, plumbing or electrical;
(H) machinery and equipment used for general plant heating, cooling and lighting;
(I) motor vehicles that are registered for operation on public highways; or
(J) employee apparel, except safety and protective apparel that is purchased by an
employer and furnished gratuitously to employees who are involved in production or
research activities.
(6) Subsections (3) and (5) shall not be construed as exclusive listings of the machinery
and equipment that qualify or do not qualify as an integral or essential part of an integrated
production operation. When machinery or equipment is used as an integral or essential part
of production operations part of the time and for nonproduction purpose at other times, the
primary use of the machinery or equipment shall determine whether or not such machinery
or equipment qualifies for exemption.
(7) The secretary of revenue shall adopt rules and regulations necessary to administer
the provisions of this subsection;
(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
conducting programs for the improvement of public health;
(mm) all sales of seeds and tree seedlings; fertilizers, insecticides, herbicides,
germicides, pesticides and fungicides; and services, purchased and used for the purpose of
producing 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
advertising 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
production of oil or gas;
(qq) all sales of tangible personal property and services purchased by a nonprofit
museum 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
federal 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
broadcasting 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
organizations 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
services 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
persons 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
eliminating diabetes through medical research, public education focusing on disease
prevention and education, patient education including information on coping with diabetes,
and professional 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; and
(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
Alzheimer'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,
reconstructing, 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, furnishing 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 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, 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 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;
(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
organization 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
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, maintaining,
repairing, enlarging, furnishing or remodeling facilities for any such organization. When any
such organization 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 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
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. 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,
maintaining, 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 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 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 conviction 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.; and
(fff) all sales of material handling equipment, racking systems and other related
machinery and equipment that is used for the handling, movement or storage of tangible
personal property in a warehouse or distribution facility in this state; all sales of installation,
repair and maintenance services performed on such machinery and equipment; and all sales
of repair and replacement parts for such machinery and equipment. For purposes of this
subsection, a warehouse or distribution facility means a single, fixed location that consists
of buildings or structures in a contiguous area where storage or distribution operations are
conducted that are separate and apart from the business' retail operations, if any, and which
do not otherwise qualify for exemption as occurring at a manufacturing or processing plant
or facility. Material handling and storage equipment shall include aeration, dust control,
cleaning, handling and other such equipment that is used in a public grain warehouse or
other commercial grain storage facility, whether used for grain handling, grain storage, grain
refining or processing, or other grain treatment operation.
Sec. 2. K.S.A. 79-3609 is hereby amended to read as follows: 79-3609. (a) Every person
engaged in the business of selling tangible personal property at retail or furnishing services
taxable in this state, shall keep records and books of all such sales, together with invoices,
bills of lading, sales records, copies of bills of sale and other pertinent papers and documents.
Such books and records and other papers and documents shall, at all times during business
hours of the day, be available for and subject to inspection by the director, or the director's
duly authorized agents and employees, for a period of three years from the last day of the
calendar year or of the fiscal year of the retailer, whichever comes later, to which the records
pertain. Such records shall be preserved during the entire period during which they are
subject to inspection by the director, unless the director in writing previously authorizes
their disposal. Any person selling tangible personal property or furnishing taxable services
shall be prohibited from asserting that any sales are exempt from taxation unless the retailer
has in the retailer's possession a properly executed exemption certificate provided by the
consumer claiming the exemption. Any retailer asserting a claim that certain sales are exempt
who does not have the required exemption certificates in possession shall acquire such
certificates within 60 days after receiving notice from the director that such certificates are
required. If such certificates are not obtained within the period set forth herein, the sales
shall be deemed to be taxable sales under this act.
(b) The amount of tax imposed by this act is to be assessed within three years after the
return is filed, and no proceedings in court for the collection of such taxes shall be begun
after the expiration of such period. In the case of a false or fraudulent return with intent to
evade tax, the tax may be assessed or a proceeding in court for collection of such tax may
be begun at any time, within two years from the discovery of such fraud. No assessment
shall be made for any period preceding the date of registration of the retailer by more than
three years except in cases of fraud. No refund or credit shall be allowed by the director
after three years from the date of payment of the tax as provided in this act unless before
the expiration of such period a claim therefor is filed by the taxpayer, and no suit or action
to recover on any claim for refund shall be commenced until after the expiration of six
months from the date of filing a claim therefor with the director.
(c) Before the expiration of time prescribed in this section for the assessment of
additional tax or the filing of a claim for refund, the director is hereby authorized to enter
into an agreement in writing with the taxpayer consenting to the extension of the periods
of limitations for the assessment of tax or for the filing of a claim for refund, at any time
prior to the expiration of the period of limitations. The period so agreed upon may be
extended by subsequent agreements in writing made before the expiration of the period
previously agreed upon. In consideration of such agreement or agreements, interest due in
excess of 48 months on any additional tax shall be waived.
(d) For all taxable periods subject to assessment on January 1, 1998, including periods
subject to an agreement to extend the statute of limitations, and for all taxable periods
commencing after December 31, 1997, interest at the rate prescribed by K.S.A. 79-2968,
and amendments thereto, shall be allowed on any overpayment of tax computed from the
due date of the return if it was timely filed and accompanied by the tax due or, if the return
was not timely filed, from the date of payment, except that no interest shall be allowed on
any such refund if the same is paid within 60 days after the date of the return or the date
of payment, as the case requires.
(e) Notwithstanding any other provision of this section or the provisions of the Kansas
compensating tax act:
(1) No claim for refund of tax imposed by the Kansas retailers' sales tax act or the Kansas
compensating tax act based upon the provisions of subsection (kk) of K.S.A. 79-3606 in
existence prior to its amendment by this act shall be allowed.
(2) No claim for refund of tax imposed by the Kansas retailers' sales tax act or the Kansas
compensating tax act based upon the application of the provisions of subsection (n) of K.S.A.
79-3606 pursuant to its interpretation by the court of appeals of the state of Kansas in its
opinion filed on August 13, 1999, in the case entitled In re appeal of Water District No. 1
of Johnson County shall be allowed for tax paid prior to the effective date of this act.
Sec. 3. K.S.A. 79-3609 and K.S.A. 1999 Supp. 79-3606 are hereby repealed.'';
By renumbering existing section 3 as section 4;
In the title, in line 10, by striking all after ``exempting''; in line 11, by striking all before
the semicolon and inserting ``sales of certain business machinery and equipment; concerning
certain refunds''; also in line 11, by striking ``1998'' and inserting ``79-3609 and K.S.A. 1999'';
in line 12, by striking ``section'' and inserting ``sections''; and the bill be passed as amended.
Committee on Commerce recommends HB 2580, as amended by House Committee,
be amended on page 1, after the enacting clause by inserting an additional section as follows:
``New Section 1. No later than July 1, 2001, the state corporation commission shall
adopt rules and regulations that:
(a) Require all local exchange carriers and telecommunications carriers to collectively
develop a method or methods for annually notifying residential subscribers of their rights
and remedies available to them under the Kansas consumer protection act, the telephone
consumer protection act and the telemarketing and consumer fraud and abuse prevention
act and the availability of the direct marketing association's telephone preference service.
(b) Require the information provided to residential subscribers in subsection (a) to
specify, at a minimum, the following: The method of registering with the telephone
preference service at no cost to the subscribers; the frequency with which the data base
maintained by the telephone preference service is updated; the types of calls registered
subscribers should still expect to receive; the measures subscribers must take to register if
they move or receive a new telephone number; the duration for registration and the
procedures for registration renewals; and the remedies available to registered subscribers if
they receive unsolicited consumer telephone calls pursuant to K.S.A. 1999 Supp. 50-670,
and amendments thereto.
(c) Establish guidelines for acceptable methods to inform all telephone solicitors in
Kansas of: The requirements for membership in the direct marketing association; charges
for members and nonmembers of the direct marketing association to access the data base
of the telephone preference service; and options available to telephone solicitors for
accessing Kansas-specific portions of the data base.'';
By renumbering the existing sections accordingly;
Also on page 1, in line 15, by striking ``Section'' and inserting ``Sec.'';
On page 2, in line 24, by striking all after ``call''; by striking all in lines 25 and 26; in line
27, by striking all before the period; also in line 27, after the period by inserting ``If answered
by automated dialing-announcing device, the message provided shall include only the
information required in subsection (b)(1) and (2), but shall not contain any unsolicited
advertisement.'';
In the title, in line 10, by striking all after ``to''; in line 11, by striking all before the
semicolon and inserting ``unsolicited consumer telephone calls''; and the bill be passed as
amended.
Committee on Elections and Local Government recommends SB 389, as amended
by House Committee of the Whole, be amended on page 3, in line 28, by striking all after
``on''; in line 29, by striking ``state capitol'' and inserting ``state property within the state
capitol plaza area''; in line 39, after the period, by inserting: ``The memorial for Kansas
firefighters is subject to the provisions, procedures and approvals required under sections
2 through 6, and amendments thereto, except that such memorial for Kansas firefighters is
hereby authorized by the legislature for purposes of subsection (b) of section 5, and
amendments thereto.'';
On page 5, after line 32, by inserting the following:
``Sec. 1. (a) The secretary of administration shall review the historic structure report on
the capitol and shall develop and maintain a preservation plan for the capitol grounds. In
addition, the secretary of administration shall develop guidelines and standards for
memorials on the grounds of the capitol. All guidelines and standards for memorials on the
grounds of the capitol shall be consistent with the statement of purpose and use for the
capitol grounds and shall be designed to:
(1) Ensure the subjects of memorials are of historic and lasting significance for Kansas;
(2) ensure the design excellence of all memorials on the grounds of the capitol;
(3) preserve, protect and enhance the limited amount of available space on the capitol
grounds;
(4) preserve and further the implementation of the long-range plan of development for
the capitol area;
(5) ensure that memorials proposed for the grounds of the capitol are appropriately
planned, designed and sited and are reviewed, funded and constructed in a timely manner;
(6) ensure that adequate and appropriate opportunities are provided for the involvement
of or comment by interested members of the public throughout the development of the
proposal for the memorial; and
(7) ensure that individuals, groups and organizations have a clear understanding of the
process that must be completed in order to propose and to have a memorial constructed or
placed on the grounds of the capitol.
(b) After advising and consulting with the state historic preservation officer of the state
historical society, the legislative coordinating council and the heads of other state agencies
with offices located in the capitol, the secretary of administration shall recommend
guidelines and standards for memorials on the grounds of the capitol to the capitol area
plaza authority. After receipt of such guidelines and standards, the capitol area plaza
authority shall review and consider such guidelines and standards. If the authority approves
of the proposed guidelines and standards, the authority shall adopt the proposed guidelines
and standards for memorials on the grounds of the capitol. If the authority does not adopt
the recommended guidelines and standards or any amendments thereto, the authority shall
make recommendations to the secretary of administration for amendments or additions to
the proposed guidelines and standards or any amendments thereto.
(c) In the same manner, the secretary of administration may propose and recommend
amendments or additions to the guidelines and standards for memorials on the grounds of
the capitol for consideration by the capitol area plaza authority.
Sec. 4. (a) No memorial shall be constructed or placed on the grounds of the capitol
except in accordance with the procedures and subject to the conditions and limitations
prescribed by this act. Each proposal for a memorial to be constructed or placed on the
grounds of the capitol shall be consistent with the statement of purpose and use adopted
for the grounds of the capitol and shall be subject to the guidelines and standards for
memorials on the grounds of the capitol adopted by the capitol area plaza authority.
(b) In addition to other requirements or provisions of law applicable thereto, each
proposal for a memorial to be constructed or placed on the grounds of the capitol shall be
submitted to the secretary of administration for consideration in accordance with this act.
Prior to being adopted or rejected by the secretary of administration, each such proposal
shall be submitted to and reviewed and considered by the following officials:
(1) The state historic preservation officer of the state historical society;
(2) the director of facilities management of the department of administration; and
(3) the director of legislative administrative services.
(c) The secretary of administration shall receive and consider the recommendations
from the state historic preservation officer of the state historical society, director of facilities
management of the department of administration and director of legislative administrative
services regarding any such proposal prior to adopting any recommendation regarding such
proposal. After review and consideration of the recommendations from each such official,
the secretary of administration may approve or reject the proposal. If the secretary of
administration recommends approval of any such proposal, the secretary shall submit the
proposal to the capitol area plaza authority for consideration by the authority.
(d) Each memorial proposed to be constructed or placed on the grounds of the capitol
that is recommended by the secretary of administration shall be presented to the capitol
area plaza authority. If any such proposal is approved by the capitol area plaza authority,
such proposal shall be submitted to the governor and the legislative coordinating council
for appropriate action.
Sec. 5. (a) The primary considerations as to whether a proposed memorial is approved
for the capitol grounds shall be the significance and relevance of any memorial proposed to
be constructed or placed on the grounds of the capitol and the extent to which the proposed
memorial complies with the requirements of, is consistent with and furthers the purposes
and implementation of the preservation plan for the grounds of the capitol and the guidelines
and standards for memorials on the grounds of the capitol.
(b) No memorial shall be constructed or placed on the grounds of the capitol without
specific authorization for such memorial by act of the legislature.
Sec. 6. As used in this act, ``memorial'' means any permanent commemorative plaque,
monument, sculpture, statuary, work of art or other object, structure or capital improvement
project, but does not include construction or maintenance of walkways or roadways or any
landscaping, landscape gardening or other maintenance or development of the capitol
grounds unless such project or activity is specifically for commemorative purposes.'';
And by renumbering the remaining section accordingly;
In the title, in line 12, by striking all after ``the''; in line 13, by striking all before the
semicolon and inserting: ``state capitol area; relating to memorials''; in line 14, after the
semicolon, by inserting: ``memorial for Kansas firefighters and''; and the bill be passed as
amended.
Also, SB 535 be amended on page 1, in line 20, preceding ``to'' by inserting ``in agriculture,
marketing, home economics, 4-H club and youth work, community and resource
development, and economic initiatives'';
On page 4, in line 14, by striking ``executive board'' and inserting ``commission''; also in
line 14, by striking ``2000,'' and inserting ``following the effective date of this act''; in line
19, following ``the'' by striking ``election'' and inserting ``appointment''; also in line 19, by
striking ``at an election''; in line 20, by striking ``held on the first Tuesday in April'' and
inserting ``on June 1''; in line 22, by striking ``election'' and inserting ``appointment''; also in
line 22, by striking ``at an''; in line 23 by striking ``election held on the first Tuesday in April''
and inserting ``on June 1''; in line 24, by striking all after the period; by striking all in lines
25, 26 and 27;
On page 5, in line 6, by striking ``elected'' and inserting ``appointed''; in line 20, preceding
the period, by inserting ``in agriculture, marketing, home economics, 4-H club and youth
work, community and resource development, and economic initiatives''; in line 41, by
striking ``election'' and inserting ``appointment'';
On page 9, following line 24, by inserting ``in agriculture, marketing, home economics,
4-H club and youth work, community and resource development, and economic initiatives'';
in line 26, following ``information'' by inserting ``on those subjects''; and the bill be passed
as amended.
Committee on Federal and State Affairs recommends SCR 1635 be amended on page
2, by striking all in lines 11 through 15 and inserting:
``Be it further resolved: That the Secretary of State is hereby directed to send enrolled
copies of this resolution to the President of the United States; the President pro tempore
of the United States Senate; the Speaker of the United States House of Representatives;
each member of the Kansas Congressional Delegation; each member of the United States
Supreme Court and the United States Court of Appeals for the 10th Circuit and all federal
district court judges for the district of Kansas; and each member of the Kansas Supreme
Court and the Kansas Court of Appeals and all Kansas district court judges.''; and the
concurrent resolution be adopted as amended.
Committee on Financial Institutions and Insurance recommends HB 2754 be passed.
Committee on Judiciary begs leave to submit the following report:
The following appointments were referred to and considered by the committee and your
committee recommends that the Senate approve and consent to such appointments:
By the Governor:
Indigents' Defense Services Board: K.S.A. 22-4519
Ruth Graham, term expires January 15, 2002
David Herndon, term expires January 15, 2002
Bruce Beye, term expires January 15, 2002
Denise Tomasic, term expires January 15, 2003
Devon Knoll, term expires January 15, 2003
Willis Musick, term expires January 15, 2003
By the Attorney General:
Crime Victims' Compensation Board: K.S.A. 74-7303
Glenda L. Cafer, Chairperson, term expires March 15, 2004
Committee on Transportation and Tourism recommends HB 2809, as amended by
House Committee of the Whole, be reported without recommendation.
Committee on Ways and Means recommends SB 380, be amended by adoption of the
amendments recommended by the Senate Committee on Education as reported in the
Journal of the Senate on February 3, 2000, and the bill, as printed with amendments by
Senate Committee, be passed.
REPORT ON ENROLLED BILLS
SB 457 reported correctly enrolled, properly signed and presented to the Governor on
March 14, 2000.
Also, SR 1819, 1820 reported correctly enrolled, properly signed and presented to the
Secretary of the Senate on March 14, 2000.
ORIGINAL MOTION
On motion of Senator Vidricksen, the Senate acceded to the request of the House for a
conference on HB 2641.
The President appointed Senators Vidricksen, Jordan, and Gilstrap as conferees on the
part of the Senate.
On motion of Senator Lawrence, the Senate acceded to the request of the House for a
conference on HB 2862.
The President appointed Senators Lawrence, Langworthy, and Downey as conferees on
the part of the Senate.
COMMITTEE OF THE WHOLE
On motion of Senator Emert, the Senate resolved itself into Committee of the Whole for
consideration of bills on the calendar under the heading of General Orders with Senator
Praeger in the chair.
On motion of Senator Praeger the following report was adopted:
Recommended SB 266, 549; Sub HB 2642; HB 2781, 2826 be passed.
Also, the committee report on HB 2476 recommending a S Sub for HB 2476 be
adopted.
Senator Hensley moved to amend the bill on page 4, preceding line 36, by inserting the
following:
``Sec. 5. In preparing budget recommendations for the governor's budget report for a
fiscal year to be submitted to the legislature under K.S.A. 75-3721 and amendments thereto,
if the state board of regents has approved increases in the rate or rates of tuition for state
educational institutions for such fiscal year, then the governor shall include in such budget
recommendations for such fiscal year increased amounts of recommended expenditures for
all need-based student financial aid programs administered by the state board of regents or
any state educational institution thereunder, from any moneys available therefor, which
constitute a percentage increase in aggregate expenditures for all such need-based student
financial aid programs over the approved budget of expenditures for such programs for the
preceding fiscal year that is equal to or greater than the average of the percentage increases
in rates of tuition for state educational institutions approved by the state board of regents.'';
And by renumbering the remaining section accordingly;
In the title, in line 12, preceding the period, by inserting: ``; prescribing certain budget
recommendations related to tuition increases approved by the state board of regents''
Upon the showing of five hands a roll call vote was requested.
On roll call, the vote was: Yeas 13, Nays 26, Present and Passing 0, Absent or Not Voting
1.
Yeas: Barone, Biggs, Downey, Feleciano, Gilstrap, Gooch, Goodwin, Hensley, Lee, Petty,
Salmans, Steineger, Stephens.
Nays: Becker, Bleeker, Bond, Brownlee, Clark, Corbin, Donovan, Emert, Hardenburger,
Harrington, Huelskamp, Jordan, Kerr, Langworthy, Lawrence, Morris, Oleen, Praeger,
Pugh, Ranson, Salisbury, Steffes, Tyson, Umbarger, Vidricksen, Vratil.
Absent or Not Voting: Jones
The motion failed and the amendment was rejected.
EXPLANATION OF VOTE
Mr. President: I believe Kansas college students shouldn't be forced to pay for the
state's budget shortfall, which is why I proposed the amendment to S Sub HB 2476 that
would have increased need-based financial aid whenever student tuition was increased.
The amendment would have required that whenever the Board of Regents increases
student tuition, the governor must recommend a funding increase for all need-based student
financial aid programs equal to the average percentage increase in tuition. For example,
tuition increases at regents schools averaged 5.7% this year. Under the Democratic proposal,
the governor would have had to increase funding for need-based financial aid programs by
5.7% or a greater amount.
By approving the Board of Regents' decision to raise tuition not once, but twice over the
interim, the Republicans are saying that college students are responsible to pay for
Republican fiscal mismanagement. I disagree. If we are asking students to bear a greater
cost for their education, the state should provide greater financial assistance. I cannot stand
by while the Republicans balance the budget on the backs of college students and their
families.
During the last seven years, Governor Graves recommended increases in financial aid of
only 5%, while tuition costs went up more than 30%.
Kansas universities are some of the best in the nation, but calling them a bargain doesn't
mean there aren't kids out there struggling to afford a college education. It is only fair that
need- based financial aid keeps pace with tuition increases.--Anthony Hensley
Mr. President: I vote no on this ill-conceived amendment for two reasons. Kansas has
had a long established tradition of low tuition. As a result, we have a very high rate of kids
from Kansas high schools attending Kansas Universities. This policy remains in tact even
after the two tuition increases authorized by the Board of Regents this year. Our tuition is
lower than that in surrounding states and peer institution nationwide.
Secondly, the Legislature has added, at various times, significant new money for needs
based student aid. Over time, the increase has been similar in percentage to tuition increases.
There is no need to impose a mandate from one branch of government on another branch
of government.--Dave Kerr
Mr. President: The amendment to correlate student tuition increases at our public
universities to the amount of needs-based student financial aid programs might be a good
idea, but only the legislature can appropriate the dollars-not the Governor. We have worked
hard to ensure increases for student access-and it is our commitment through the legislative
appropriation process-not the executive suggestion process.--Lana Oleen and Sandy
Praeger
The committee recommended S Sub for HB 2476 be passed.
HB 2622, 2854 be amended by adoption of the committee amendments, and the bills
be passed as amended.
HB 2659 be amended by motion of Senator Corbin on page 1, in line 31, after ``district''
by inserting ``, provided that the contract amount for such services does not exceed $10,000'';
On page 2, in line 29, after ``thereto'' by inserting ``, provided that the contract amount
therefor does not exceed $10,000''
Senator Hardenburger amended the bill on page 3, after line 14, by inserting:
``Sec. 3. K.S.A. 24-1228 is hereby amended to read as follows: 24-1228. Whenever a
watershed district has been organized and incorporated under the provisions of article 12
of chapter 24 of the Kansas Statutes Annotated, or any and amendments thereto, for more
than four years, and such district eight years and has not adopted a general plan of work
and projects to be undertaken by the district, nor constructed or contracted to construct
any works of improvement, nor or incurred any continuing obligations for maintenance of
any works of improvement, or when such a district has been organized and incorporated
under such provisions for more than four years and has not made substantial progress toward
a general plan of work and projects to be undertaken by the district, the board of such
district may, by resolution adopted by a 2/3 vote of all members of such board present and
voting, but in no event less than a majority of all members of such board at a special meeting
of such board called for that purpose, and notice of which special meeting shall specify the
purpose for which the meeting is to be called, provide for the calling of an election of the
qualified voters of such district for the purpose of determining whether such district shall
be dissolved; and the board shall provide for the calling of such an election if written petitions
therefor signed by 20% of the landowners of such district, as shown by a verified
enumeration of such landowners by a landowner of such district, are filed with the secretary
of such board. Notwithstanding any provision of this section, the Middle Creek joint
watershed district No. 50 may be dissolved in the same manner and procedure as provided
herein.
The election to determine whether the district shall be dissolved shall be held and
conducted in the same manner as provided by K.S.A. 24-1207, and amendments thereto,
insofar as such provisions can be made applicable. If a majority of those voting on the
proposition voted in favor of dissolution of the district, the board shall immediately certify
the results of such election to the secretary of state, and the secretary of state shall thereupon
issue and deliver to the secretary of such board a certificate of dissolution.'';
Also on page 3, by renumbering the remaining sections accordingly; in line 15, by striking
``and 19-3552'' and inserting ``, 19-3552 and 24-1228'';
In the title, in line 9, by striking all after ``concerning''; by striking all of line 10 and
inserting ``water; relating to public wholesale water supply districts and watershed districts;
amending K.S.A. 19-3545, 19-3552 and 24-1228
Senator Pugh amended the bill on page 3, after line 14, by inserting:
``Sec. 3. K.S.A. 82a-630 is hereby amended to read as follows: 82a-630. If it becomes
apparent that certain lands included within a district cannot be economically or adequately
served by the facilities of the district, the owners of such lands may petition the county
commissioners board of directors of the district to release those lands from the district. The
petition shall describe by section or fraction thereof and by township and range the lands
affected and be signed by at least seventy-five percent (75%) 75% of the total number of
the owners of land desiring release and be endorsed by the board of directors of the district.
After a finding. If the board of directors of the district does not grant the petition within 30
days after receipt of the petition, the petitioners shall submit the petition to the board of
county commissioners. Upon receipt of such petition, the board of county commissioners
shall schedule a hearing on the petition. The county commission shall give written notice of
the time and place of the hearing to the petitioners at least 10 days before the hearing and
shall mail, by certified mail, return receipt requested, written notice of the time and place
of the hearing, together with a copy of the petition, to the board of directors of the district
not less than 10 days before the hearing. If, upon the hearing, the board of county
commissioners finds that the granting of the petition is to in the best interests of the affected
landowners and the district, the board of county commissioners shall issue a certificate
stating that the lands involved are released and separated from the district. Full minutes of
the hearing shall be entered in the journal of the board of county commissioners and the
certificate shall be delivered to the secretary of the district who shall within thirty (30) 30
days cause the records of the district to be amended to exclude the lands affected. The
secretary of the district shall transmit a copy of any such certificate to the chief engineer.'';
Also on page 3, by renumbering the remaining sections accordingly; in line 15, by striking
``and 19-3552'' and inserting ``, 19-3552 and 82a-630'';
In the title, in line 9, by striking all after ``concerning''; in line 10, by striking all before
the semicolon and inserting ``water; relating to public wholesale water supply districts and
water districts''; also in line 9, by striking ``and 19-3552'' and inserting ``, 19-3552 and 82a-
630, and HB 2659 be passed as amended.
HB 2660 be amended by adoption of the committee amendments.
Senator Brownlee moved to amend the bill on page 6, line 41, by striking $7944.00 and
inserting $5681.00. The motion failed and the amendment was rejected.
The committee recommended HB 2660 be passed as amended.
HB 2810 be amended by adoption of the committee amendments, be further amended
by motion of Senator Lawrence as amended by Senate Committee, on page 2, in line 36,
by striking ``1,794'' and inserting ``2,230'';
In the title, in line 14, after ``affecting'', by inserting ``the count of preschool-aged at-risk
pupils; revising, and HB 2810 be passed as further amended.
HB 2817 be passed over and retain a place on the calendar.
On motion of Senator Emert the Senate adjourned until 2:30 p.m., Wednesday, March
15, 2000.
HELEN A. MORELAND, Journal Clerk.
PAT SAVILLE, Secretary of Senate.