CHAPTER 124 HOUSE BILL No. 2160 An Act relating to the state corporation commission; concerning motor carriers; relating to
certain fees; amending K.S.A. 8-142, 8-2107, 32-1009, 44-503c, 60-305a, 65-1626, 65-
4101, 65-4116, 65-7004, 66-1,105, 66-1,108, 66-1,109, 66-1,111, 66-1,112, 66-1,112h,
66-1,114, 66-1,114b, 66-1,115, 66-1,115a, 66-1,116, 66-1,119, 66-1,126, 66-1,128, 66-
1,129, 66-1,129a, 66-1,130, 66-1,139, 66-1,140, 66-1a01, 66-1313a, 79-6a01, 79-6a02 and
79-6a03 and K.S.A. 2002 Supp. 8-2,127 and repealing the existing sections; also repealing
K.S.A. 66-1,112a, 66-1,112b, 66-1,112c, 66-1,112d, 66-1,112e and 66-1,112f.
Be it enacted by the Legislature of the State of Kansas:

      New Section  1. Contract motor carriers transporting household
goods or passengers holding permits issued by the commission under the
former authority of K.S.A. 66-1,112a, 66-1,112b or 66-1,112c, and amend-
ments thereto, shall now be considered as holding certificates of conven-
ience and necessity to transport such household goods and passengers as
originally granted to that motor carrier by the commission. Contract mo-
tor carriers transporting property other than household goods or trans-
porting passengers and holding permits issued by the commission under
the former authority of K.S.A. 66-1,112a, 66-1,112b or 66-1,112c, and
amendments thereto, shall now be considered as holding certificates of
public service to transport such property other than household goods or
transporting passengers as originally granted to that motor carrier by the
commission. Contract motor carriers with rates and tariffs on file with the
commission under the authority of K.S.A. 66-1,112 and 66-1,112f, and
amendments thereto, shall be considered public motor carriers with the
same rates and tariffs on file with the commission.

      Sec.  2. K.S.A. 8-142 is hereby amended to read as follows: 8-142. It
shall be unlawful for any person to commit any of the following acts and
except as otherwise provided, violation is subject to penalties provided in
K.S.A. 8-149, and amendments thereto:

      First: To operate, or for the owner thereof knowingly to permit the
operation, upon a highway of any vehicle, as defined in K.S.A. 8-126, and
amendments thereto, which is not registered, or for which a certificate
of title has not been issued or which does not have attached thereto and
displayed thereon the license plate or plates assigned thereto by the di-
vision for the current registration year, including any registration decal
required to be affixed to any such license plate pursuant to K.S.A. 8-134,
and amendments thereto, subject to the exemptions allowed in K.S.A. 8-
135, 8-198 and 8-1751a, and amendments thereto.

      Second: To display or cause or permit to be displayed, or to have in
possession, any registration receipt, certificate of title, registration license
plate, registration decal, accessible parking placard or accessible parking
identification card knowing the same to be fictitious or to have been
canceled, revoked, suspended or altered. A violation of this part Second
shall constitute an unclassified misdemeanor punishable by a fine of not
less than $100 and forfeiture of the item. A mandatory court appearance
shall be required of any person violating this part Second. This part Sec-
ond shall not apply to the possession of: (a) Model year license plates
displayed on antique vehicles as allowed under K.S.A. 8-172, and amend-
ments thereto; or (b) distinctive license plates allowed under K.S.A. 8-
1,147, and amendments thereto.

      Third: To lend to or knowingly permit the use by one not entitled
thereto any registration receipt, certificate of title, registration license
plate or registration decal issued to the person so lending or permitting
the use thereof.

      Fourth: To fail or refuse to surrender to the division, upon demand,
any registration receipt, certificate of title, registration license plate or
registration decal which has been suspended, canceled or revoked.

      Fifth: To use a false or fictitious name or address in any application for
a certificate of title, the registration of any vehicle or for any renewal or
duplicate thereof, or knowingly to make a false statement or knowingly
to conceal a material fact or otherwise commit a fraud in any such appli-
cation.

      Sixth: For the owner of a motor vehicle to file application for the reg-
istration thereof, in any county other than the county in which the owner
of the vehicle resides or has a bona fide place of business, which place is
not an office or facility established or maintained solely for the purpose
of obtaining registration.

      Seventh: To operate on the highways of this state a vehicle or combi-
nation of vehicles whose weight with cargo is in excess of the gross weight
for which the truck or truck tractor propelling the same is registered,
except as provided by K.S.A. 8-143, and amendments thereto, and sub-
sections (a) to (f), inclusive, of K.S.A. 8-1911, and amendments thereto.
Such gross weight shall not be required to be in excess of the limitations
described by K.S.A. 8-1908 and 8-1909, and amendments thereto, for
such vehicle or combination of vehicles of which it is a part. Any person
or owner who operates a vehicle in this state with a registration in violation
of subsection (2) of K.S.A. 8-143, and amendments thereto, shall be re-
quired to pay the additional fee equal to the fee required by the applicable
registration fee schedule, less the amount of the fee required for the gross
weight for which the vehicle is registered to obtain the proper registration
therewith. A fine of $75 shall be assessed for all such gross weight reg-
istration violations.

      Eighth: To operate a local truck or truck tractor which is registered for
a gross weight of more than 12,000 pounds as a common or contract
carrier outside a radius of three miles beyond the corporate limits of the
city in which such vehicle was based when registered and licensed or to
operate any other local truck or truck tractor licensed for a gross weight
of more than 12,000 pounds outside a radius of 25 miles beyond the
corporate limits of the city in which such vehicle was based when regis-
tered and licensed, except as provided in subsection (2) of K.S.A. 8-143
or 8-143i, and amendments thereto.

      Ninth: To operate on the highways of this state a farm truck or farm
trailer other than to transport: (a) Agricultural products produced by such
owner; (b) commodities purchased by the owner for use on the farm
owned or rented by the owner of such vehicles; (c) commodities for re-
ligious or educational institutions being transported by the owner of such
vehicles for charity and without compensation of any kind, except as pro-
vided in subsection (c) of K.S.A. 66-1,109, and amendments thereto; or
(d) sand, gravel, slag stone, limestone, crushed stone, cinders, black top,
dirt or fill material to a township road maintenance or construction site
of the township in which the owner of such truck resides.

      Tenth: To operate a farm truck or truck tractor used in combination
with a trailer or semitrailer for a gross weight which does not include the
empty weight of the truck or truck tractor or of the combination of any
truck or truck tractor and any type of trailer or semitrailer, plus the max-
imum weight of cargo which will be transported on or with the same; and
such farm truck or farm truck tractor used to transport a gross weight of
more than 54,000 pounds shall have durably lettered on the side of the
motor vehicle the words ``farm vehicle--not for hire.''

      Eleventh: To operate on the highways of this state any truck or truck
tractor without the current quarter of license fees being paid thereon.

      Twelfth: To operate on the highways of this state a truck or truck tractor
without carrying in the cab a copy of the registration receipt for such
vehicle or without having painted or otherwise durably marked on said
vehicle on both sides thereof, the gross weight for which said vehicle is
licensed and the name and address of the owner thereof, except as pro-
vided in K.S.A. 8-143e, and amendments thereto.

      Thirteenth: To operate on the highways of this state a farm trailer car-
rying more than 6,000 pounds without being registered and the registra-
tion fees paid thereon.

      Fourteenth: To operate more than 6,000 miles in any calendar year any
truck or truck tractor which has been registered and licensed to operate
not more than 6,000 miles in such calendar year, as provided in subsection
(2) of K.S.A. 8-143, and amendments thereto, unless the additional fee
required by said subsection (2) has been paid.

      Fifteenth: For any owner who has registered a truck or truck tractor
on the basis of operating not more than 6,000 miles to fail to keep the
records required by the director of vehicles, or to fail to comply with rules
and regulations of the secretary of revenue relating to such registration.

      Sixteenth: To operate a vehicle or combination of vehicles on the na-
tional system of interstate and defense highways with a gross weight
greater than permitted by the laws of the United States Congress.

      Sec.  3. K.S.A. 2002 Supp. 8-2,127 is hereby amended to read as fol-
lows: 8-2,127. Vehicles that are exempt from this act include:

      (a) Farm vehicles, defined as follows:

      (1) Registered as a farm truck or truck tractor under K.S.A. 8-143,
and amendments thereto;

      (2) used to transport either agricultural products, farm machinery,
farm supplies, or both, to or from a farm;

      (3) not used in the operations of a common or contract motor carrier;
and

      (4) used within 150 air miles of any farm or farms owned or leased
by the registered owner of such farm vehicle;

      (b) vehicles operated by firefighters and other persons which are nec-
essary to the preservation of life or property or the execution of emer-
gency governmental functions, are equipped with audible and visual sig-
nals and are not subject to normal traffic regulation. These vehicles
include fire trucks, hook and ladder trucks, foam or water transport
trucks, police SWAT team vehicles, ambulances or other vehicles that are
used in response to emergencies;

      (c) military vehicles which are operated by military personnel in pur-
suit of military purposes and all noncivilian operators of equipment owned
or operated by the United States department of defense. This applies to
any active duty military personnel and members of the reserves and na-
tional guard on active duty, including personnel on full-time national
guard duty, personnel on part-time training and national guard military
technicians, civilians who are required to wear military uniforms and are
subject to the code of military justice; and

      (d) motor vehicles, which would otherwise be considered commercial
motor vehicles, if such vehicles are used solely and exclusively for private
noncommercial use and any operator of such vehicles.

      Sec.  4. K.S.A. 8-2107 is hereby amended to read as follows: 8-2107.
(a) (1) Notwithstanding any other provisions of the uniform act regulating
traffic on highways, when a person is stopped by a police officer for any
of the offenses described in subsection (d) and such person is not im-
mediately taken before a judge of the district court, the police officer may
require the person stopped, subject to the provisions of subsection (c), to
deposit with the officer a valid Kansas driver's license in exchange for a
receipt therefor issued by such police officer, the form of which shall be
approved by the division of vehicles. Such receipt shall be recognized as
a valid temporary Kansas driver's license authorizing the operation of a
motor vehicle by the person stopped until the date of the hearing stated
on the receipt. The driver's license and a written copy of the notice to
appear shall be delivered by the police officer to the court having juris-
diction of the offense charged as soon as reasonably possible. If the hear-
ing on such charge is continued for any reason, the judge may note on
the receipt the date to which such hearing has been continued and such
receipt shall be recognized as a valid temporary Kansas driver's license
until such date, but in no event shall such receipt be recognized as a valid
Kansas driver's license for a period longer than 30 days from the date set
for the original hearing. Any person who has deposited a driver's license
with a police officer under this subsection (a) shall have such license
returned upon final determination of the charge against such person.

      (2) In the event the person stopped deposits a valid Kansas driver's
license with the police officer and fails to appear in the district court on
the date set for appearance, or any continuance thereof, and in any event
within 30 days from the date set for the original hearing, the court shall
forward such person's driver's license to the division of vehicles with an
appropriate explanation attached thereto. Upon receipt of such person's
driver's license, the division shall suspend such person's privilege to op-
erate a motor vehicle in this state until such person appears before the
court having jurisdiction of the offense charged, the court makes a final
disposition thereof and notice of such disposition is given by the court to
the division. No new or replacement license shall be issued to any such
person until such notice of disposition has been received by the division.
The provisions of K.S.A. 8-256, and amendments thereto, limiting the
suspension of a license to one year, shall not apply to suspensions for
failure to appear as provided in this subsection (a).

      (b) No person shall apply for a replacement or new driver's license
prior to the return of such person's original license which has been de-
posited in lieu of bond under this section. Violation of this subsection (b)
is a class C misdemeanor. The division may suspend such person's driver's
license for a period of not to exceed one year from the date the division
receives notice of the disposition of the person's charge as provided in
subsection (a).

      (c)  (1) In lieu of depositing a valid Kansas driver's license with the
stopping police officer as provided in subsection (a), the person stopped
may elect to give bond in the amount specified in subsection (d) for the
offense for which the person was stopped. When such person does not
have a valid Kansas driver's license, such person shall give such bond.
Such bond shall be subject to forfeiture if the person stopped does not
appear at the court and at the time specified in the written notice pro-
vided for in K.S.A. 8-2106, and amendments thereto.

      (2) Such bond may be a cash bond, a bank card draft from any valid
and unexpired credit card approved by the division of vehicles or super-
intendent of the Kansas highway patrol or a guaranteed arrest bond cer-
tificate issued by either a surety company authorized to transact such
business in this state or an automobile club authorized to transact business
in this state by the commissioner of insurance. If any of the approved
bank card issuers redeem the bank card draft at a discounted rate, such
discount shall be charged against the amount designated as the fine for
the offense. If such bond is not forfeited, the amount of the bond less
the discount rate shall be reimbursed to the person providing the bond
by the use of a bank card draft. Any such guaranteed arrest bond certif-
icate shall be signed by the person to whom it is issued and shall contain
a printed statement that such surety company or automobile club guar-
antees the appearance of such person and will, in the event of failure of
such person to appear in court at the time of trial, pay any fine or forfei-
ture imposed on such person not to exceed an amount to be stated on
such certificate.

      (3) Such cash bond shall be taken in the following manner: The police
officer shall furnish the person stopped a stamped envelope addressed to
the judge or clerk of the court named in the written notice to appear and
the person shall place in such envelope the amount of the bond, and in
the presence of the police officer shall deposit the same in the United
States mail. After such cash payment, the person stopped need not sign
the written notice to appear, but the police officer shall note the amount
of the bond mailed on the notice to appear form and shall give a copy of
such form to the person. If the person stopped furnishes the police officer
with a guaranteed arrest bond certificate or bank card draft, the police
officer shall give such person a receipt therefor and shall note the amount
of the bond on the notice to appear form and give a copy of such form
to the person stopped. Such person need not sign the written notice to
appear, and the police officer shall present the notice to appear and the
guaranteed arrest bond certificate or bank card draft to the court having
jurisdiction of the offense charged as soon as reasonably possible.

      (d) The offenses for which appearance bonds may be required as
provided in subsection (c) and the amounts thereof shall be as follows:

      On and after July 1, 1996:

Reckless driving	$82
Driving when privilege is canceled, suspended or revoked	82
Failure to comply with lawful order of officer	57
Registration violation (registered for 12,000 pounds or less)	52
Registration violation (registered for more than 12,000 pounds)	92
No driver's license for the class of vehicle operated or violation of restrictions	52
Spilling load on highway	52

Overload:

Gross weight of vehicle or combination of vehicles	an amount equal to the fine plus docket fee to be imposed if convicted
Gross weight upon any axle or tandem, triple or quad axles	an amount equal to the fine plus docket fee to be imposed if convicted
Failure to obtain proper registration, clearance or to have current certification as required by K.S.A. 66-1324, and amendments thereto	272
Insufficient liability insurance for motor carriers pursuant to K.S.A. 66-1,128 or 66-1314, and amendments thereto	122
Failure to obtain interstate motor fuel tax authorization pursuant to K.S.A. 79-34,122, and amendments thereto	122
Improper equipment (glass or fire extinguishers)	52
No authority as private, contract or common carrier	122
No current driver's daily log	52
Invalid or no physical examination card	52
Transporting open container of alcoholic liquor or cereal malt beverage accessible while vehicle in motion	223

      (e) In the event of forfeiture of any bond under this section, $54 of
the amount forfeited shall be regarded as a docket fee in any court having
jurisdiction over the violation of state law.

      (f) None of the provisions of this section shall be construed to conflict
with the provisions of the nonresident violator compact.

      (g) When a person is stopped by a police officer for any traffic in-
fraction and the person is a resident of a state which is not a member of
the nonresident violator compact, K.S.A. 8-1219 et seq., and amendments
thereto, or the person is licensed to drive under the laws of a foreign
country, the police officer may require a bond as provided for under
subsection (c). The bond shall be in the amount specified in the uniform
fine schedule in subsection (c) of K.S.A. 8-2118, and amendments
thereto, plus $54 which shall be regarded as a docket fee in any court
having jurisdiction over the violation of state law.

      (h) When a person is stopped by a police officer for failure to provide
proof of financial security pursuant to K.S.A. 40-3104, and amendments
thereto, and the person is a resident of another state or the person is
licensed to drive under the laws of a foreign country, the police officer
may require a bond as provided for under subsection (c). The bond shall
be in the amount of $54, plus $54 which shall be regarded as a docket
fee in any court having jurisdiction over the violation of state law.

      Sec.  5. K.S.A. 32-1009 is hereby amended to read as follows: 32-
1009. Except as provided in rules and regulations adopted pursuant to
K.S.A. 32-963, and amendments thereto, it shall be unlawful for any per-
son to take, possess, transport, export, process, sell or offer for sale or
ship nongame species deemed by the secretary to be in need of conser-
vation pursuant to K.S.A. 32-959, and amendments thereto. Subject to
the same exception, it shall further be unlawful for any common or con-
tract carrier knowingly to transport or receive for shipment nongame
species deemed by the secretary to be in need of conservation pursuant
to K.S.A. 32-959, and amendments thereto.

      Sec.  6. K.S.A. 44-503c is hereby amended to read as follows: 44-
503c. (a) (1) Any individual who is an owner-operator and the exclusive
driver of a motor vehicle that is leased or contracted to a licensed motor
carrier shall not be considered to be a contractor or an employee of the
licensed motor carrier within the meaning of K.S.A. 44-503, and amend-
ments thereto, or an employee of the licensed motor carrier within the
meaning of subsection (b) of K.S.A. 44-508, and amendments thereto,
and the licensed motor carrier shall not be considered to be a principal
within the meaning of K.S.A. 44-503, and amendments thereto, or an
employer of the owner-operator within the meaning of subsection (a) of
K.S.A. 44-508, and amendments thereto, if the owner-operator is covered
by an occupational accident insurance policy and is not treated under the
terms of the lease agreement or contract with the licensed motor carrier
as an employee for purposes of the federal insurance contribution act, 26
U.S.C. § 3101 et seq., the federal social security act, 42 U.S.C. § 301 et
seq., the federal unemployment tax act, 26 U.S.C. § 3301 et seq., and the
federal statutes prescribing income tax withholding at the source, 26
U.S.C. § 3401 et seq.

      (2) As used in this subsection:

      (A) ``Motor vehicle'' means any automobile, truck-trailer, semitrailer,
tractor, motor bus or any other self-propelled or motor-driven vehicle
used upon any of the public highways of Kansas for the purpose of trans-
porting persons or property;

      (B) ``licensed motor carrier'' means any person, firm, corporation or
other business entity that holds a certificate of convenience and necessity,
a certificate of public service, a contract carrier permit, or an interstate
license as a common, contract or exempt carrier from the state corpora-
tion commission or is required to register motor carrier equipment pur-
suant to 49 U.S.C. § 11506; and

      (C) ``owner-operator'' means an individual who is the owner of a sin-
gle motor vehicle that is driven exclusively by the owner under a lease
agreement or contract with a licensed motor carrier.

      (b) Notwithstanding any other provision of this act, a licensed motor
carrier may by lease agreement or contract secure workers compensation
insurance for an owner-operator, otherwise subject to the act by statute
or election, and may charge-back to the owner-operator the premium for
such workers compensation insurance, and by doing so does not create
an employer-employee relationship between the licensed motor carrier
and the owner-operator, or subject the licensed motor carrier to liability
under subsection (d)(1) of K.S.A. 44-5,120 and amendments thereto.

      (c) For purposes of subsection (b) of this section only, ``owner-op-
erator'' means a person, firm, corporation or other business entity that is
the owner of one or more motor vehicles that are driven exclusively by
the owner or the owner's employees or agents under a lease agreement
or contract with a licensed motor carrier; provided that neither the owner-
operator nor the owner's employees are treated under the term of the
lease agreement or contract with the licensed motor carrier as an em-
ployee for purposes of the federal insurance contribution act, 26 U.S.C.
§ 3101 et seq., the federal social security act, 42 U.S.C. § 301 et seq., the
federal unemployment tax act, 26 U.S.C. § 3301 et seq., and the federal
statutes prescribing income tax withholding at the source, 26 U.S.C. §
3401 et seq.

      Sec.  7. K.S.A. 60-305a is hereby amended to read as follows: 60-
305a. Every individual, partnership, association or corporation engaged
in the business of transportation as a common carrier or contract carrier,
which is subject to regulation by the state corporation commission, doing
business in this state shall designate some person residing in this state on
whom all process and notices issued by any court of record may be served.
In every case such individual, partnership, company or corporation shall
file a certificate of the appointment and designation of such person in the
office of the state corporation commission or as required pursuant to 49
U.S.C. 11506. The service of the process upon the person so designated,
in any civil action, shall be deemed and held to be as effectual and com-
plete as if service of such process were made upon the president or other
chief officer of such individual, partnership, company or corporation. Any
individual, partnership, company or corporation may revoke the appoint-
ment and designation of such person upon whom process may be served,
by appointing any other person qualified as above specified and filing a
certificate of such appointment. Every second or subsequent appoint-
ment shall also designate the person whose place is filled by such ap-
pointment. If any such individual, partnership, company or corporation
fails to designate and appoint such person, as required by this section,
such process may be served in any county as provided by provisions of
article 3 of chapter 60 of Kansas Statutes Annotated, and amendments
thereto.

      Sec.  8. K.S.A. 65-1626 is hereby amended to read as follows: 65-
1626. For the purposes of this act:

      (a) ``Administer'' means the direct application of a drug, whether by
injection, inhalation, ingestion or any other means, to the body of a patient
or research subject by:

      (1) A practitioner or pursuant to the lawful direction of a practitioner;

      (2) the patient or research subject at the direction and in the presence
of the practitioner; or

      (3) a pharmacist as authorized in K.S.A. 65-1635a and amendments
thereto.

      (b) ``Agent'' means an authorized person who acts on behalf of or at
the direction of a manufacturer, distributor or dispenser but shall not
include a common or contract carrier, public warehouseman or employee
of the carrier or warehouseman when acting in the usual and lawful course
of the carrier's or warehouseman's business.

      (c) ``Board'' means the state board of pharmacy created by K.S.A. 74-
1603 and amendments thereto.

      (d) ``Brand exchange'' means the dispensing of a different drug prod-
uct of the same dosage form and strength and of the same generic name
than the brand name drug product prescribed.

      (e) ``Brand name'' means the registered trademark name given to a
drug product by its manufacturer, labeler or distributor.

      (f) ``Deliver'' or ``delivery'' means the actual, constructive or at-
tempted transfer from one person to another of any drug whether or not
an agency relationship exists.

      (g) ``Direct supervision'' means the process by which the responsible
pharmacist shall observe and direct the activities of a pharmacy student
or pharmacy technician to a sufficient degree to assure that all such ac-
tivities are performed accurately, safely and without risk or harm to pa-
tients, and complete the final check before dispensing.

      (h) ``Dispense'' means to deliver prescription medication to the ulti-
mate user or research subject by or pursuant to the lawful order of a
practitioner or pursuant to the prescription of a mid-level practitioner.

      (i) ``Dispenser'' means a practitioner or pharmacist who dispenses
prescription medication.

      (j) ``Distribute'' means to deliver, other than by administering or dis-
pensing, any drug.

      (k) ``Distributor'' means a person who distributes a drug.

      (l) ``Drug'' means: (1) Articles recognized in the official United States
pharmacopoeia, or other such official compendiums of the United States,
or official national formulary, or any supplement of any of them; (2) ar-
ticles intended for use in the diagnosis, cure, mitigation, treatment or
prevention of disease in man or other animals; (3) articles, other than
food, intended to affect the structure or any function of the body of man
or other animals; and (4) articles intended for use as a component of any
articles specified in clause (1), (2) or (3) of this subsection; but does not
include devices or their components, parts or accessories, except that the
term ``drug'' shall not include amygdalin (laetrile) or any livestock remedy,
if such livestock remedy had been registered in accordance with the pro-
visions of article 5 of chapter 47 of the Kansas Statutes Annotated prior
to its repeal.

      (m) ``Electronic transmission'' means transmission of information in
electronic form or the transmission of the exact visual image of a docu-
ment by way of electronic equipment.

      (n) ``Generic name'' means the established chemical name or official
name of a drug or drug product.

      (o)  (1) ``Institutional drug room'' means any location where prescrip-
tion-only drugs are stored and from which prescription-only drugs are
administered or dispensed and which is maintained or operated for the
purpose of providing the drug needs of:

      (A) Inmates of a jail or correctional institution or facility;

      (B) residents of a juvenile detention facility, as defined by the Kansas
code for care of children and the Kansas juvenile justice code;

      (C) students of a public or private university or college, a community
college or any other institution of higher learning which is located in
Kansas;

      (D) employees of a business or other employer; or

      (E) persons receiving inpatient hospice services.

      (2) ``Institutional drug room'' does not include:

      (A) Any registered pharmacy;

      (B) any office of a practitioner; or

      (C) a location where no prescription-only drugs are dispensed and no
prescription-only drugs other than individual prescriptions are stored or
administered.

      (p) ``Medical care facility'' shall have the meaning provided in K.S.A.
65-425 and amendments thereto, except that the term shall also include
facilities licensed under the provisions of K.S.A. 75-3307b and amend-
ments thereto except community mental health centers and facilities for
the mentally retarded.

      (q) ``Manufacture'' means the production, preparation, propagation,
compounding, conversion or processing of a drug either directly or in-
directly by extraction from substances of natural origin, independently by
means of chemical synthesis or by a combination of extraction and chem-
ical synthesis and includes any packaging or repackaging of the drug or
labeling or relabeling of its container, except that this term shall not in-
clude the preparation or compounding of a drug by an individual for the
individual's own use or the preparation, compounding, packaging or la-
beling of a drug by: (1) A practitioner or a practitioner's authorized agent
incident to such practitioner's administering or dispensing of a drug in
the course of the practitioner's professional practice; (2) a practitioner,
by a practitioner's authorized agent or under a practitioner's supervision
for the purpose of, or as an incident to, research, teaching or chemical
analysis and not for sale; or (3) a pharmacist or the pharmacist's author-
ized agent acting under the direct supervision of the pharmacist for the
purpose of, or incident to, the dispensing of a drug by the pharmacist.

      (r) ``Person'' means individual, corporation, government, govern-
mental subdivision or agency, partnership, association or any other legal
entity.

      (s) ``Pharmacist'' means any natural person licensed under this act to
practice pharmacy.

      (t) ``Pharmacist in charge'' means the pharmacist who is responsible
to the board for a registered establishment's compliance with the laws
and regulations of this state pertaining to the practice of pharmacy, man-
ufacturing of drugs and the distribution of drugs. The pharmacist in
charge shall supervise such establishment on a full-time or a part-time
basis and perform such other duties relating to supervision of a registered
establishment as may be prescribed by the board by rules and regulations.
Nothing in this definition shall relieve other pharmacists or persons from
their responsibility to comply with state and federal laws and regulations.

      (u) ``Pharmacy,'' ``drug store'' or ``apothecary'' means premises, lab-
oratory, area or other place: (1) Where drugs are offered for sale where
the profession of pharmacy is practiced and where prescriptions are com-
pounded and dispensed; or (2) which has displayed upon it or within it
the words ``pharmacist,'' ``pharmaceutical chemist,'' ``pharmacy,'' ``apoth-
ecary,'' ``drugstore,'' ``druggist,'' ``drugs,'' ``drug sundries'' or any of these
words or combinations of these words or words of similar import either
in English or any sign containing any of these words; or (3) where the
characteristic symbols of pharmacy or the characteristic prescription sign
``Rx'' may be exhibited. As used in this subsection, premises refers only
to the portion of any building or structure leased, used or controlled by
the licensee in the conduct of the business registered by the board at the
address for which the registration was issued.

      (v) ``Pharmacy student'' means an individual, registered with the
board of pharmacy, enrolled in an accredited school of pharmacy.

      (w) ``Pharmacy technician'' means an individual who, under the direct
supervision and control of a pharmacist, may perform packaging, manip-
ulative, repetitive or other nondiscretionary tasks related to the processing
of a prescription or medication order and who assists the pharmacist in
the performance of pharmacy related duties, but who does not perform
duties restricted to a pharmacist.

      (x) ``Practitioner'' means a person licensed to practice medicine and
surgery, dentist, podiatrist, veterinarian, optometrist licensed under the
optometry law as a therapeutic licensee or diagnostic and therapeutic
licensee, or scientific investigator or other person authorized by law to
use a prescription-only drug in teaching or chemical analysis or to conduct
research with respect to a prescription-only drug.

      (y) ``Preceptor'' means a licensed pharmacist who possesses at least
two years' experience as a pharmacist and who supervises students ob-
taining the pharmaceutical experience required by law as a condition to
taking the examination for licensure as a pharmacist.

      (z) ``Prescription'' means, according to the context, either a prescrip-
tion order or a prescription medication.

      (aa) ``Prescription medication'' means any drug, including label and
container according to context, which is dispensed pursuant to a prescrip-
tion order.

      (bb) ``Prescription-only drug'' means any drug whether intended for
use by man or animal, required by federal or state law (including 21
United States Code section 353, as amended) to be dispensed only pur-
suant to a written or oral prescription or order of a practitioner or is
restricted to use by practitioners only.

      (cc) ``Prescription order'' means: (1) An order to be filled by a phar-
macist for prescription medication issued and signed by a practitioner or
a mid-level practitioner in the authorized course of professional practice;
or (2) an order transmitted to a pharmacist through word of mouth, note,
telephone or other means of communication directed by such practitioner
or mid-level practitioner.

      (dd) ``Probation'' means the practice or operation under a temporary
license, registration or permit or a conditional license, registration or per-
mit of a business or profession for which a license, registration or permit
is granted by the board under the provisions of the pharmacy act of the
state of Kansas requiring certain actions to be accomplished or certain
actions not to occur before a regular license, registration or permit is
issued.

      (ee) ``Professional incompetency'' means:

      (1) One or more instances involving failure to adhere to the appli-
cable standard of pharmaceutical care to a degree which constitutes gross
negligence, as determined by the board;

      (2) repeated instances involving failure to adhere to the applicable
standard of pharmaceutical care to a degree which constitutes ordinary
negligence, as determined by the board; or

      (3) a pattern of pharmacy practice or other behavior which demon-
strates a manifest incapacity or incompetence to practice pharmacy.

      (ff) ``Retail dealer'' means a person selling at retail nonprescription
drugs which are prepackaged, fully prepared by the manufacturer or dis-
tributor for use by the consumer and labeled in accordance with the
requirements of the state and federal food, drug and cosmetic acts. Such
nonprescription drugs shall not include: (1) A controlled substance; (2) a
prescription-only drug; or (3) a drug intended for human use by hypo-
dermic injection.

      (gg) ``Secretary'' means the executive secretary of the board.

      (hh) ``Unprofessional conduct'' means:

      (1) Fraud in securing a registration or permit;

      (2) intentional adulteration or mislabeling of any drug, medicine,
chemical or poison;

      (3) causing any drug, medicine, chemical or poison to be adulterated
or mislabeled, knowing the same to be adulterated or mislabeled;

      (4) intentionally falsifying or altering records or prescriptions;

      (5) unlawful possession of drugs and unlawful diversion of drugs to
others;

      (6) willful betrayal of confidential information under K.S.A. 65-1654
and amendments thereto;

      (7) conduct likely to deceive, defraud or harm the public;

      (8) making a false or misleading statement regarding the licensee's
professional practice or the efficacy or value of a drug;

      (9) commission of any act of sexual abuse, misconduct or exploitation
related to the licensee's professional practice; or

      (10) performing unnecessary tests, examinations or services which
have no legitimate pharmaceutical purpose.

      (ii) ``Mid-level practitioner'' means an advanced registered nurse
practitioner issued a certificate of qualification pursuant to K.S.A. 65-1131
and amendments thereto who has authority to prescribe drugs pursuant
to a written protocol with a responsible physician under K.S.A. 65-1130
and amendments thereto or a physician assistant licensed pursuant to the
physician assistant licensure act who has authority to prescribe drugs pur-
suant to a written protocol with a responsible physician under K.S.A. 65-
28a08 and amendments thereto.

      (jj) ``Vaccination protocol'' means a written protocol, agreed to by a
pharmacist and a person licensed to practice medicine and surgery by the
state board of healing arts, which establishes procedures and recordkeep-
ing and reporting requirements for administering a vaccine by the phar-
macist for a period of time specified therein, not to exceed two years.

      (kk) ``Veterinary medical teaching hospital pharmacy'' means any lo-
cation where prescription-only drugs are stored as part of an accredited
college of veterinary medicine and from which prescription-only drugs
are distributed for use in treatment of or administration to a non-human.

      Sec.  9. K.S.A. 65-4101 is hereby amended to read as follows: 65-
4101. As used in this act: (a) ``Administer'' means the direct application
of a controlled substance, whether by injection, inhalation, ingestion or
any other means, to the body of a patient or research subject by: (1) A
practitioner or pursuant to the lawful direction of a practitioner; or

      (2) the patient or research subject at the direction and in the presence
of the practitioner.

      (b) ``Agent'' means an authorized person who acts on behalf of or at
the direction of a manufacturer, distributor or dispenser. It does not in-
clude a common or contract carrier, public warehouseman or employee
of the carrier or warehouseman.

      (c) ``Board'' means the state board of pharmacy.

      (d) ``Bureau'' means the bureau of narcotics and dangerous drugs,
United States department of justice, or its successor agency.

      (e) ``Controlled substance'' means any drug, substance or immediate
precursor included in any of the schedules designated in K.S.A. 65-4105,
65-4107, 65-4109, 65-4111 and 65-4113, and amendments to these sec-
tions.

      (f) ``Counterfeit substance'' means a controlled substance which, or
the container or labeling of which, without authorization bears the trade-
mark, trade name or other identifying mark, imprint, number or device
or any likeness thereof of a manufacturer, distributor or dispenser other
than the person who in fact manufactured, distributed or dispensed the
substance.

      (g) ``Deliver'' or ``delivery'' means the actual, constructive or at-
tempted transfer from one person to another of a controlled substance,
whether or not there is an agency relationship.

      (h) ``Dispense'' means to deliver a controlled substance to an ultimate
user or research subject by or pursuant to the lawful order of a practi-
tioner, including the packaging, labeling or compounding necessary to
prepare the substance for that delivery, or pursuant to the prescription
of a mid-level practitioner.

      (i) ``Dispenser'' means a practitioner or pharmacist who dispenses.

      (j) ``Distribute'' means to deliver other than by administering or dis-
pensing a controlled substance.

      (k) ``Distributor'' means a person who distributes.

      (l) ``Drug'' means: (1) Substances recognized as drugs in the official
United States pharmacopoeia, official homeopathic pharmacopoeia of the
United States or official national formulary or any supplement to any of
them; (2) substances intended for use in the diagnosis, cure, mitigation,
treatment or prevention of disease in man or animals; (3) substances
(other than food) intended to affect the structure or any function of the
body of man or animals; and (4) substances intended for use as a com-
ponent of any article specified in clause (1), (2) or (3) of this subsection.
It does not include devices or their components, parts or accessories.

      (m) ``Immediate precursor'' means a substance which the board has
found to be and by rule and regulation designates as being the principal
compound commonly used or produced primarily for use and which is
an immediate chemical intermediary used or likely to be used in the
manufacture of a controlled substance, the control of which is necessary
to prevent, curtail or limit manufacture.

      (n) ``Manufacture'' means the production, preparation, propagation,
compounding, conversion or processing of a controlled substance either
directly or indirectly or by extraction from substances of natural origin or
independently by means of chemical synthesis or by a combination of
extraction and chemical synthesis and includes any packaging or repack-
aging of the substance or labeling or relabeling of its container, except
that this term does not include the preparation or compounding of a
controlled substance by an individual for the individual's own lawful use
or the preparation, compounding, packaging or labeling of a controlled
substance: (1) By a practitioner or the practitioner's agent pursuant to a
lawful order of a practitioner as an incident to the practitioner's admin-
istering or dispensing of a controlled substance in the course of the prac-
titioner's professional practice; or

      (2) by a practitioner or by the practitioner's authorized agent under
such practitioner's supervision for the purpose of or as an incident to
research, teaching or chemical analysis or by a pharmacist or medical care
facility as an incident to dispensing of a controlled substance.

      (o) ``Marijuana'' means all parts of all varieties of the plant Cannabis
whether growing or not, the seeds thereof, the resin extracted from any
part of the plant and every compound, manufacture, salt, derivative, mix-
ture or preparation of the plant, its seeds or resin. It does not include the
mature stalks of the plant, fiber produced from the stalks, oil or cake
made from the seeds of the plant, any other compound, manufacture,
salt, derivative, mixture or preparation of the mature stalks, except the
resin extracted therefrom, fiber, oil, or cake or the sterilized seed of the
plant which is incapable of germination.

      (p) ``Narcotic drug'' means any of the following whether produced
directly or indirectly by extraction from substances of vegetable origin or
independently by means of chemical synthesis or by a combination of
extraction and chemical synthesis: (1) Opium and opiate and any salt,
compound, derivative or preparation of opium or opiate;

      (2) any salt, compound, isomer, derivative or preparation thereof
which is chemically equivalent or identical with any of the substances
referred to in clause (1) but not including the isoquinoline alkaloids of
opium;

      (3) opium poppy and poppy straw;

      (4) coca leaves and any salt, compound, derivative or preparation of
coca leaves, and any salt, compound, isomer, derivative or preparation
thereof which is chemically equivalent or identical with any of these sub-
stances, but not including decocainized coca leaves or extractions of coca
leaves which do not contain cocaine or ecgonine.

      (q) ``Opiate'' means any substance having an addiction-forming or
addiction-sustaining liability similar to morphine or being capable of con-
version into a drug having addiction-forming or addiction-sustaining lia-
bility. It does not include, unless specifically designated as controlled
under K.S.A. 65-4102 and amendments thereto, the dextrorotatory iso-
mer of 3-methoxy-n-methylmorphinan and its salts (dextromethorphan).
It does include its racemic and levorotatory forms.

      (r) ``Opium poppy'' means the plant of the species Papaver somni-
ferum l. except its seeds.

      (s) ``Person'' means individual, corporation, government, or govern-
mental subdivision or agency, business trust, estate, trust, partnership or
association or any other legal entity.

      (t) ``Poppy straw'' means all parts, except the seeds, of the opium
poppy, after mowing.

      (u) ``Pharmacist'' means an individual currently licensed by the board
to practice the profession of pharmacy in this state.

      (v) ``Practitioner'' means a person licensed to practice medicine and
surgery, dentist, podiatrist, veterinarian, optometrist licensed under the
optometry law as a therapeutic licensee or diagnostic and therapeutic
licensee, or scientific investigator or other person authorized by law to
use a controlled substance in teaching or chemical analysis or to conduct
research with respect to a controlled substance.

      (w) ``Production'' includes the manufacture, planting, cultivation,
growing or harvesting of a controlled substance.

      (x) ``Ultimate user'' means a person who lawfully possesses a con-
trolled substance for such person's own use or for the use of a member
of such person's household or for administering to an animal owned by
such person or by a member of such person's household.

      (y) ``Isomer'' means all enantiomers and diastereomers.

      (z) ``Medical care facility'' shall have the meaning ascribed to that
term in K.S.A. 65-425 and amendments thereto.

      (aa) ``Cultivate'' means the planting or promotion of growth of five
or more plants which contain or can produce controlled substances.

      (bb)  (1) ``Controlled substance analog'' means a substance that is in-
tended for human consumption, and:

      (A) The chemical structure of which is substantially similar to the
chemical structure of a controlled substance listed in or added to the
schedules designated in K.S.A. 65-4105 or 65-4107 and amendments
thereto;

      (B) which has a stimulant, depressant or hallucinogenic effect on the
central nervous system substantially similar to the stimulant, depressant
or hallucinogenic effect on the central nervous system of a controlled
substance included in the schedules designated in K.S.A. 65-4105 or 65-
4107 and amendments thereto; or

      (C) with respect to a particular individual, which the individual rep-
resents or intends to have a stimulant, depressant or hallucinogenic effect
on the central nervous system substantially similar to the stimulant, de-
pressant or hallucinogenic effect on the central nervous system of a con-
trolled substance included in the schedules designated in K.S.A. 65-4105
or 65-4107 and amendments thereto.

      (2) ``Controlled substance analog'' does not include:

      (A) A controlled substance;

      (B) a substance for which there is an approved new drug application;
or

      (C) a substance with respect to which an exemption is in effect for
investigational use by a particular person under section 505 of the federal
food, drug, and cosmetic act (21 U.S.C. 355) to the extent conduct with
respect to the substance is permitted by the exemption.

      (cc) ``Mid-level practitioner'' means an advanced registered nurse
practitioner issued a certificate of qualification pursuant to K.S.A. 65-1131
and amendments thereto, who has authority to prescribe drugs pursuant
to a written protocol with a responsible physician under K.S.A. 65-1130,
and amendments thereto or a physician assistant licensed under the phy-
sician assistant licensure act who has authority to prescribe drugs pursuant
to a written protocol with a responsible physician under K.S.A. 65-28a08
and amendments thereto.

      Sec.  10. K.S.A. 65-4116 is hereby amended to read as follows: 65-
4116. (a) Every person who manufactures, distributes or dispenses any
controlled substance within this state or who proposes to engage in the
manufacture, distribution or dispensing of any controlled substance
within this state shall obtain annually a registration issued by the board
in accordance with the uniform controlled substances act and with rules
and regulations adopted by the board.

      (b) Persons registered by the board under this act to manufacture,
distribute, dispense or conduct research with controlled substances may
possess, manufacture, distribute, dispense or conduct research with those
substances to the extent authorized by their registration and in conformity
with the other provisions of this act.

      (c) The following persons need not register and may lawfully possess
controlled substances under this act, as specified in this subsection:

      (1) An agent or employee of any registered manufacturer, distributor
or dispenser of any controlled substance if the agent or employee is acting
in the usual course of such agent or employee's business or employment;

      (2) a common or contract carrier or warehouseman or an employee
thereof whose possession of any controlled substance is in the usual
course of business or employment;

      (3) an ultimate user or a person in possession of any controlled sub-
stance pursuant to a lawful order of a practitioner or a mid-level practi-
tioner or in lawful possession of a schedule V substance;

      (4) persons licensed and registered by the board under the provisions
of the acts contained in article 16 of chapter 65 of the Kansas Statutes
Annotated, and amendments thereto, to manufacture, dispense or dis-
tribute drugs are considered to be in compliance with the registration
provision of the uniform controlled substances act without additional pro-
ceedings before the board or the payment of additional fees, except that
manufacturers and distributors shall complete and file the application
form required under the uniform controlled substances act;

      (5) any person licensed by the state board of healing arts under the
Kansas healing arts act;

      (6) any person licensed by the state board of veterinary examiners;

      (7) any person licensed by the Kansas dental board;

      (8) a mid-level practitioner; and

      (9) any person who is a member of the Native American Church,
with respect to use or possession of peyote, whose use or possession of
peyote is in, or for use in, bona fide religious ceremonies of the Native
American Church, but nothing in this paragraph shall authorize the use
or possession of peyote in any place used for the confinement or housing
of persons arrested, charged or convicted of criminal offenses or in the
state security hospital.

      (d) The board may waive by rules and regulations the requirement
for registration of certain manufacturers, distributors or dispensers if the
board finds it consistent with the public health and safety, except that
licensure of any person by the state board of healing arts to practice any
branch of the healing arts, Kansas dental board or the state board of
veterinary examiners shall constitute compliance with the registration
requirements of the uniform controlled substances act by such person for
such person's place of professional practice. Evidence of abuse as deter-
mined by the board relating to a person licensed by the state board of
healing arts shall be submitted to the state board of healing arts and the
attorney general within 60 days. The state board of healing arts shall,
within 60 days, make findings of fact and take such action against such
person as it deems necessary. All findings of fact and any action taken
shall be reported by the state board of healing arts to the board of phar-
macy and the attorney general. Evidence of abuse as determined by the
board relating to a person licensed by the state board of veterinary ex-
aminers shall be submitted to the state board of veterinary examiners and
the attorney general within 60 days. The state board of veterinary ex-
aminers shall, within 60 days, make findings of fact and take such action
against such person as it deems necessary. All findings of fact and any
action taken shall be reported by the state board of veterinary examiners
to the board of pharmacy and the attorney general. Evidence of abuse as
determined by the board relating to a dentist licensed by the Kansas
dental board shall be submitted to the Kansas dental board and the at-
torney general within 60 days. The Kansas dental board shall, within 60
days, make findings of fact and take such action against such dentist as it
deems necessary. All findings of fact and any action taken shall be re-
ported by the Kansas dental board to the board of pharmacy and the
attorney general.

      (e) A separate annual registration is required at each place of business
or professional practice where the applicant manufactures, distributes or
dispenses controlled substances.

      (f) The board may inspect the establishment of a registrant or appli-
cant for registration in accordance with the board's rules and regulations.

      (g)  (1) The registration of any person or location shall terminate
when such person or authorized representative of a location dies, ceases
legal existence, discontinues business or professional practice or changes
the location as shown on the certificate of registration. Any registrant who
ceases legal existence, discontinues business or professional practice, or
changes location as shown on the certificate of registration, shall notify
the board promptly of such fact and forthwith deliver the certificate of
registration directly to the secretary or executive secretary of the board.
In the event of a change in name or mailing address the person or au-
thorized representative of the location shall notify the board promptly in
advance of the effective date of this change by filing the change of name
or mailing address with the board. This change shall be noted on the
original application on file with the board.

      (2) No registration or any authority conferred thereby shall be as-
signed or otherwise transferred except upon such conditions as the board
may specifically designate and then only pursuant to the written consent
of the board.

      Sec.  11. K.S.A. 65-7004 is hereby amended to read as follows: 65-
7004. The provisions of this act shall not apply to: (a) A distribution of a
regulated chemical to or by a common or contract carrier for carriage in
the lawful and usual course of the business of the common or contract
carrier, or to or by a warehouseman for storage in the lawful and usual
course of the business of the warehouseman;

      (b) the lawful administering or dispensing of a regulated chemical by
a licensed practitioner in the course of professional practice or research;

      (c) the purchase, distribution or possession of a regulated chemical
by a local, state or federal law enforcement agency while in the discharge
of official duties unless the Kansas bureau of investigation properly no-
tifies the local law enforcement agency relying on the exclusion that its
investigatory activities are contrary to the public interest; or

      (d) products containing ephedra or ma huang, which do not contain
any chemically synthesized ephedrine alkaloids, and are lawfully marketed
as dietary supplements under federal law.

      Sec.  12. K.S.A. 66-1a01 is hereby amended to read as follows: 66-
1a01. (a) The state corporation commission shall charge and collect fees
for the purposes and in the amounts as prescribed in this section. Such
fees shall be paid to the state corporation commission at the time of filing
the original papers or application in the case.

      (b)  (1) For the purposes of certificates issued under K.S.A. 66-125,
and amendments thereto, to authorize the issuance of stock, bonds or
other evidences of indebtedness, except as otherwise provided in this
paragraph (1), the commission shall charge and collect an application fee
of $10 to accompany each application and processing fees which shall be
set by rules and regulations adopted by the commission and shall reflect
the costs incurred by the commission to process such application.

      Notwithstanding the foregoing provisions of this paragraph (1), when-
ever an application is made for a certificate to authorize the issuance of
stocks, bonds or other evidences of indebtedness and the relevant federal
authority has authorized the issuance of the same issue of such stocks,
bonds or other evidences of indebtedness, the commission shall charge
and collect an application fee of $10 to accompany each application and
a processing fee of $25 which shall be paid on or before issuance of such
certificate.

      (2) Whenever an application is made for a certificate of convenience
and authority to provide interexchange telecommunications services or
competitive local exchange carrier services, the commission shall charge
and collect an application fee of $250 which shall accompany the appli-
cation.

      (3) With regard to the regulation of motor carriers, the commission
shall charge and collect fees in accordance with the following schedule:

For application for motor common carrier certificate	$25
For application for motor common carrier certificate, license or authority	not to exceed $250
For application for motor carrier permit or license, except no fee shall apply to motor carriers regulated by the relevant federal authority	10
For application for intrastate private and interstate exempt motor carrier registration	100
For application for extension, rerouting, removal of restrictions or transfer of motor common carrier certificate and motor common carrier license	10 100
For single-state registration of motor carrier vehicles for motor carriers, and renewals of those registrations, with the state of Kansas as their base state	10 per vehicle
Annual renewal fees for all certificates and registrations, due by December 31 of each year	10 per vehicle
If increases proposed in rates, fares or charges when hearing is required	25
Late fee for failure to timely complete renewals	cost of initial application

      (4) The commission shall charge a fee for copies, other than mime-
ographed or printed copies, of applications, orders, certificates, schedules
and duplicate motor-carrier equipment identification cards and a fee for
copies of passenger, household goods or property motor common carrier
lists, both fees in amounts approved by the director of accounts and re-
ports under K.S.A. 45-219, and amendments thereto.

      (c) There is hereby created in the state treasury the public service
regulation fund. The commission shall remit all moneys received by or
for it in payment of the fees imposed for certificates authorizing the is-
suance of stock, bonds or other evidences of indebtedness under para-
graph (1) of subsection (b) to the state treasurer in accordance with the
provisions of K.S.A. 75-4215, and amendments thereto. Upon the receipt
of each such remittance, the state treasurer shall deposit the entire
amount in the state treasury to the credit of the public service regulation
fund. All expenditures from the public service regulation fund shall be
made in accordance with appropriation acts upon warrants of the director
of accounts and reports issued pursuant to vouchers approved by the
chairperson of the state corporation commission or by a person or persons
designated by such chairperson.

      (d) There is hereby created in the state treasury the motor carrier
license fees fund. The commission shall remit all moneys received by or
for it in payment of the fees imposed for regulation of motor carriers
under paragraphs (2) and (3) of subsection (b) to the state treasurer in
accordance with the provisions of K.S.A. 75-4215, and amendments
thereto. Upon the receipt of each such remittance, the state treasurer
shall deposit the entire amount in the state treasury to the credit of the
motor carrier license fees fund. All expenditures from the motor carrier
license fees fund shall be made in accordance with appropriation acts
upon warrants of the director of accounts and reports issued pursuant to
vouchers approved by the chairperson of the state corporation commis-
sion or by a person or persons designated by such chairperson.

      Sec.  13. K.S.A. 66-1,105 is hereby amended to read as follows: 66-
1,105. The orders and decisions of the corporation commission on the
matters covered by this act shall be made in writing and a certified copy
thereof copies of such decisions shall be served on the motor carrier af-
fected thereby by certified motor carriers by first class mail, except that
such copies when mailed to private carriers and carriers having licenses
under K.S.A. 66-1,116 or permits under K.S.A. 66-1,112g shall be mailed
such copies by first class mail orders and decisions potentially resulting
in a negative impact upon any motor carrier's authority and initial orders
in show cause proceedings shall be served by certified mail, return receipt
requested. Every such order and decision of the commission on matters
covered by this act shall become operative and effective within 30 days
after such service, and such the motor carrier shall carry the provisions
of such the order into effect, unless the order is enjoined or set aside by
a court of proper jurisdiction.

      Sec.  14. K.S.A. 66-1,108 is hereby amended to read as follows: 66-
1,108. As used in this act:

      (a) ``Commission'' means the corporation commission of the state of
Kansas;

      (b) ``contract motor carrier of property'' means any person engaged
in the transportation by motor vehicle of property for hire and not in-
cluded in the term public motor carrier of property;

      (c) ``contract motor carrier of passengers'' means any person engaged
in the transportation by motor vehicle of persons for hire and not included
in the term public motor carrier of passengers;

      (b) ``gross combination vehicle weight rating'' means the value spec-
ified by the manufacturer as the loaded weight of a combination (artic-
ulated) motor vehicle. In the absence of a value specified by the manu-
facturer, gross combination weight rating shall be determined by adding
the gross vehicle weight rating of the power unit and the total weight of
the towed unit and any load thereon;

      (c) ``gross vehicle weight rating'' means the value specified by the
manufacturer as the loaded weight of a single motor vehicle;

      (d) ``household goods'' means property and personal effects used or
to be used in a dwelling, when a part of the equipment or supply of such
dwelling and such other similar property, as the commission may provide
by rules and regulations, if the transportation of such effects or property
is:

      (1) Arranged and paid for by the householder, including transporta-
tion of property from a factory or store when the property is purchased
by the householder with intent to use in such householder's dwelling; or

      (2) arranged and paid for by another party.

      (e) ``Motor carrier'' means any person operating as a for hire motor
carrier or a private motor carrier, and any of their that person's agents,
officers, representatives, as well as employees responsible for hiring, su-
pervising, training, assigning or dispatching of drivers and employees con-
cerned with the installation, inspection and maintenance of motor vehicle
equipment or accessories or both;

      (f) ``motor vehicle'' means any automobile, truck, trailer, semitrailer,
tractor, motor bus or any other self-propelled or motor-driven vehicle
used upon any of the public highways of the state for the purpose of
transporting persons or property;

      (g) ``person'' means any individual, firm, partnership, limited liability
partnership, corporation, limited liability company, association or their
lessees, trustees or receivers;

      (h) ``private motor carrier'' means a person who provides transpor-
tation of property or passengers, by commercial vehicle and is not a for
hire motor carrier;

      (i) ``public highways'' means every public street, alley, road or high-
way or thoroughfare of any kind used by the public;

      (j) ``public motor carrier of household goods'' means any person who
undertakes for hire to transport by motor vehicle from place to place, the
household goods of others who may choose to employ or contract with
the motor carrier;

      (k) ``public motor carrier of passengers'' means any person who un-
dertakes for hire to transport by motor vehicle, from place to place, per-
sons who may choose to employ or contract with the motor carrier; and

      (l) ``public motor carrier of property'' means any person who under-
takes for hire to transport by motor vehicle, from place to place, the
property other than household goods of others who may choose to employ
or contract with the motor carrier.

      Sec.  15. K.S.A. 66-1,109 is hereby amended to read as follows: 66-
1,109. This act shall not require the following carriers to obtain a certif-
icate, license or permit from the commission or file rates, tariffs, annual
reports or provide proof of insurance with the commission:

      (a) Transportation by motor carriers wholly within the corporate lim-
its of a city or village in this state, or between contiguous cities or villages
in this state or in this and another state, or between any city or village in
this or another state and the suburban territory in this state within three
miles of the corporate limits, or between cities and villages in this state
and cities and villages in another state which are within territory desig-
nated as a commercial zone by the relevant federal authority, except that
none of the exemptions specified in this subsection (a) shall apply to
wrecker carriers and none of such exemptions shall apply to motor car-
riers of passengers, other than motor carriers of passengers operating as
a part of the general transit system serving any such city or village in this
or another state, operating on regular routes and time schedules between
any city or village in this or another state, and the suburban territory in
this state;

      (b) a private motor carrier who operates within a radius of 25 miles
beyond the corporate limits of its city or village of domicile, or who op-
erates between cities and villages in this state and cities and villages in
another state which are within territory designated as a commercial zone
by the relevant federal authority;

      (c) the owner of livestock or producer of farm products transporting
livestock of such owner or farm products of such producer to market in
a motor vehicle of such owner or producer, or the motor vehicle of a
neighbor on the basis of barter or exchange for service or employment,
or to such owner or producer transporting supplies for the use of such
owner or producer in a motor vehicle of such owner or producer, or in
the motor vehicle of a neighbor on the basis of barter or exchange for
service or employment;

      (d) persons operating motor vehicles used only to transport property
when no common carrier is accessible, but when common-carrier service
is available then this last exemption is limited to the transportation of
such property from origin to the nearest practicable common-carrier re-
ceiving or loading point, or from a common-carrier unloading point by
way of the shortest practicable route to destination, providing such motor
vehicle does not pass a practicable delivery or receiving point of a com-
mon carrier equipped to transport such load, or when used to transport
property from the point of origin to point of destination thereof when
the destination of such property is less distant from the point of origin
thereof than the nearest practicable common-carrier receiving or loading
point equipped to transport such load;

      (e)  (1) the transportation of children to and from school, or (2) to
motor vehicles owned by schools, colleges, and universities, religious or
charitable organizations and institutions, or governmental agencies, when
used to convey students, inmates, employees, athletic teams, orchestras,
bands or other similar activities;

      (f) a new vehicle dealer as defined by K.S.A. 8-2401, and amend-
ments thereto, when transporting property to or from the place of busi-
ness of such dealer;

      (g) motor vehicles carrying tools, property or material belonging to
the owner of the vehicle and used in repair, building or construction work,
not having been sold or being transported for the purpose of sale;

      (h) persons operating motor vehicles which have an ad valorem tax
situs in and are registered in the state of Kansas, and used only to trans-
port grain from the producer to an elevator or other place for storage or
sale for a distance of not to exceed 50 miles;

      (i) the operation of hearses, funeral coaches, funeral cars or ambu-
lances by motor carriers;

      (j) motor vehicles owned and operated by the United States, the Dis-
trict of Columbia, any state, any municipality or any other political sub-
division of this state, including vehicles used exclusively for handling U.S.
mail, and the operation of motor vehicles used exclusively by organizations
operating public transportation systems pursuant to 49 U.S.C. sections
5307, 5310 and 5311;

      (k) any motor vehicle with a normal seating capacity of not more than
the driver and 15 passengers while used for vanpooling or otherwise not
for profit in transporting persons who, as a joint undertaking, bear or
agree to bear all the costs of such operations, or motor vehicles with a
normal seating capacity of not more than the driver and 15 passengers
for not-for-profit transportation by one or more employers of employees
to and from the factories, plants, offices, institutions, construction sites
or other places of like nature where such persons are employed or ac-
customed to work;

      (l) motor vehicles used to transport water for domestic purposes or
livestock consumption;

      (m) transportation of sand, gravel, slag stone, limestone, crushed
stone, cinders, calcium chloride, bituminous or concrete paving mixtures,
blacktop, dirt or fill material to a construction site, highway maintenance
or construction project or other storage facility and the operation of ready-
mix concrete trucks in transportation of ready-mix concrete;

      (n) the operation of a vehicle used exclusively for the transportation
of solid waste, as the same is defined by K.S.A. 65-3402, and amendments
thereto, to any solid waste processing facility or solid waste disposal area,
as the same is defined by K.S.A. 65-3402, and amendments thereto;

      (o) the transporting of vehicles used solely in the custom combining
business when being transported by persons engaged in such business;

      (p) the operation of vehicles used for servicing, repairing or trans-
porting of implements of husbandry, as defined in K.S.A. 8-1427, and
amendments thereto, by a person actively engaged in the business of
buying, selling or exchanging implements of husbandry, if such operation
is within 100 miles of such person's established place of business in this
state;

      (q) transportation by taxi or bus companies operated exclusively
within any city or within 25 miles of the point of its domicile in a city;

      (r) a vehicle being operated with a dealer license plate issued under
K.S.A. 8-2406, and amendments thereto, and in compliance with K.S.A.
8-136, and amendments thereto, and vehicles being operated with a full-
privilege license plate issued under K.S.A. 8-2425, and amendments
thereto;

      (s) any person operating a motor vehicle with a gross vehicle weight
rating of 10,000 pounds or less, transporting property sold or to be sold
by the owner or operator of such motor vehicle, except motor vehicles
transporting hazardous materials which require placards.;

      As used in this subsection, ``gross vehicle weight rating'' means the
value specified by the manufacturer as the maximum loaded weight of a
single or a combination (articulated) vehicle. The gross vehicle weight
rating of a combination (articulated) vehicle commonly referred to as the
``gross combination weight rating'' is the gross vehicle weight rating of
the power unit, plus the gross vehicle weight rating of the towed unit or
units;

      (t) the operation of vehicles used for transporting materials used in
the servicing or repairing of the refractory linings of industrial boilers;
and

      (u) transportation of newspapers published at least one time each
week.

      Sec.  16. K.S.A. 66-1,111 is hereby amended to read as follows: 66-
1,111. No public motor carrier of property or passengers, contract motor
carrier of property or passengers for hire or private motor carrier of prop-
erty or local cartage carrier shall operate any motor vehicle for the trans-
portation of either persons or property on any public highway in this state
except in accordance with the provisions of this act , the act of which this
act is amendatory, and amendments thereto, and other applicable laws.

      Sec.  17. K.S.A. 66-1,112 is hereby amended to read as follows: 66-
1,112. (a) The commission is hereby vested with power and authority and
it shall be its duty to license, supervise and regulate every public motor
carrier of property, of household goods or of passengers in this state, to
the full extent not preempted by federal law, including fixing and ap-
proving reasonable maximum or minimum, or maximum and minimum
rates, fares, charges, classifications and rules and regulations pertaining
to the transportation of household goods or passengers as defined in 49
U.S.C. 13102. The commission shall prescribe rules and regulations re-
lated to uniform cargo liability, uniform bills of lading, uniform cargo
credit and antitrust immunity for joint-line rates and routes, classifications
and mileage guides. The commission is hereby vested with power and
authority and it shall be its duty to license, supervise and regulate every
public motor carrier transporting property, household goods or passen-
gers in this state, and to regulate and supervise the accounts, schedules,
service and method of operation of same; to prescribe a uniform system
and classification of accounts to be used; to require the filing of annual
and other reports and any other data; and to supervise and regulate public
motor carriers transporting property, household goods or passengers in
all matters affecting the relationship between such public motor carriers
of property, of household goods or of passengers and the traveling and
shipping public.

      (b) The commission shall have power and authority, by general order
or otherwise, to prescribe reasonable and necessary rules and regulations
governing all such motor carriers. All laws relating to the powers, duties,
authority and jurisdiction of the corporation commission over common
carriers are hereby made applicable to all such motor carriers except as
herein otherwise specifically provided.

      (c) In order to insure nondiscriminatory, nonpreferential and just and
reasonable rates, joint rates, fares, tolls, charges and exactions for all ship-
pers, the commission shall establish rate-making procedures for all motor
common and contract carriers, including collective rate-making proce-
dures for joint consideration, initiation and establishment of such rates
and charges for transporting household goods or passengers as defined
in 49 U.S.C. 13102. The commission shall prescribe reasonable rules and
regulations related to uniform cargo liability, uniform bills of lading, uni-
form cargo credit and antitrust immunity for joint-line rates and routes,
classifications and mileage guides. Joint and collective rate-making shall
be limited to:

      (1) That which is necessary to formulate one or more joint rates as
such term is used in K.S.A. 66-117, and amendments thereto;

      (2) general rate increases or decreases if the tariff proposal gives ship-
pers, under procedures approved by the state corporation commission,
at least 15 days' notice of the proposal and an opportunity to present
comments on it before a tariff is filed with the commission and if discus-
sion of such increases or decreases is related to industry average carrier
costs and does not include discussion related exclusively to individual
markets or particular single-line rates;

      (3) changes in commodity classifications;

      (4) changes in tariff structures if discussion of such changes is related
to industry average carrier costs and does not include discussion related
exclusively to individual markets or particular single-line rates; and

      (5) publishing of tariffs, filing of independent actions for individual
members and changes in rules and regulations which are of at least sub-
stantially general application throughout the area in which such changes
will apply.

      (d) The provisions of K.S.A. 50-101 et seq., and amendments thereto,
shall not apply to the activities and procedures of persons, groups, agen-
cies, bureaus or other entities where such activities and procedures have
received approval by order of the state corporation commission under
this statute.

      Sec.  18. K.S.A. 66-1,112h is hereby amended to read as follows: 66-
1,112h. Upon the request of the holder of any contract carrier permit,
private carrier permit or interstate license, while serving in the armed
forces of the United States, the state corporation commission is hereby
authorized to grant to such holder a suspension of such permit or license
for such period and upon such terms and conditions as the commission
may determine: Provided,, except that nothing herein shall be construed
to limit the authority of the commission to cancel or revoke a permit or
license for violations of statutes or rules and regulations which have oc-
curred prior to or during such suspension.

      Sec.  19. K.S.A. 66-1,114 is hereby amended to read as follows: 66-
1,114. (a) Except as hereinafter provided, it shall be unlawful for any
public motor carrier to operate as a carrier of household goods or pas-
sengers in intrastate commerce within this state without first having ob-
tained from the corporation commission a certificate of convenience and
necessity to transport household goods or passengers. The corporation
commission, upon the filing of an application for a certificate, shall fix a
time and place for hearing thereon, which shall be not less than 20 and
not more than 60 days after the filing and shall be conducted in accord-
ance with the provisions of the Kansas administrative procedure act. No-
tices of hearings shall be published bimonthly in the first and third issues
of the Kansas register electronically on the commission's web site within
three days of the filing of the application. Any person may offer testimony
at such hearing.

      (b) If the commission finds that the proposed service or any part
thereof is proposed to be performed by the applicant, that the applicant
is fit, willing and able to perform such service, and that the applicant is
in compliance with the commission's safety rules and regulations, liability
and cargo insurance requirements and other applicable state laws, the
commission shall issue the certificate of convenience and necessity to
transport household goods and passengers, except that if the commission
finds that the proposed service is inconsistent with the public convenience
and necessity, the commission shall not issue the certificate.

      (c) Within 12 months of the issuance to a public motor carrier of a
certificate of convenience and necessity to transport household goods or
passengers, the commission shall verify that such public motor carrier
continues to be fit, knowledgeable and in compliance with the commis-
sion's safety rules and regulations, liability and cargo insurance require-
ments and other applicable state laws.

      Sec.  20. K.S.A. 66-1,114b is hereby amended to read as follows: 66-
1,114b. (a) Except as hereinafter provided, it shall be unlawful for any
public motor carrier to operate as a carrier of property other than house-
hold goods or as a carrier of passengers in intrastate commerce within
this state without first having obtained from the corporation commission
a certificate of public service to transport property other than household
goods or to transport passengers.

      (b) The corporation commission, upon the filing of an application for
a certificate of public service to transport property other than household
goods, shall ascertain that the motor carrier is fit, knowledgeable and in
compliance with the commission's safety rules and regulations, liability
and cargo insurance requirements and other applicable state laws. Once
a motor carrier submits a complete application demonstrating that the
motor carrier is fit, knowledgeable and in compliance with the commis-
sion's safety rules and regulations, liability and cargo insurance require-
ments and other applicable state laws, the commission may issue that
motor carrier a 30-day interim certificate of public service, signed and
approved by the commission's executive director. A list of applications
received shall be published bimonthly in the first and third issues of the
Kansas register, but in no case shall notice of the receipt of an application
be published no more than 30 days after the application is filed. If the
commission finds that the public motor carrier is fit, knowledgeable and
in compliance with the commission's safety rules and regulations, liability
and cargo insurance requirements and other applicable state laws, the
commission shall issue the certificate, signed and approved by the com-
mission's executive director, authorizing the public motor carrier to trans-
port such property statewide electronically on the commission's web site,
and shall state whether an interim certificate has been granted to the
applicant. Any person who opposes the grant of a certificate of public
service to a motor carrier applicant shall have 30 days from the commis-
sion's grant of an interim certificate to file a written protest with the
commission. If no protest against a motor carrier applicant is filed before
the expiration of the 30-day interim certificate, the commission may issue
the motor carrier applicant a permanent certificate, signed and approved
by the commission's executive director. If the commission finds that the
public motor carrier an applicant is not fit, knowledgeable, or in compli-
ance with the commission's safety rules and regulations, liability and cargo
insurance requirements and other applicable state laws, an order shall be
issued denying the application. If the commission deems it necessary, a
hearing may be held on any application, and any commission decision on
such application shall be issued by order.

      (c) Motor carriers holding a certificate of convenience and necessity
to transport property other than household goods or a local wrecker per-
mit shall be considered as holding a certificate of public service to trans-
port that property originally granted by the commission as a public motor
carrier of property. Pursuant to federal law those motor carriers may
transport that property originally granted by the commission statewide.

      (d) Within 12 months of the issuance to a public motor carrier of a
certificate of public service to transport property other than household
goods or passengers, the commission shall verify that such public motor
carrier continues to be fit, knowledgeable and in compliance with the
commission's safety rules and regulations, liability and cargo insurance
requirements and other applicable state laws.

      Sec.  21. K.S.A. 66-1,115 is hereby amended to read as follows: 66-
1,115. It shall be unlawful for any ``contract motor carrier of property or
passengers'' or ``private motor carrier of property'' private motor carrier
to operate as a carrier of property or passengers within this state either
in intrastate commerce or in interstate commerce without first having
obtained from the corporation commission a license or permit or regis-
tered pursuant to 49 U.S.C. 14504. An application shall be made to the
corporation commission in writing stating such information as the com-
mission may request. Upon receipt of such information and on compli-
ance with the rules and regulations and payment of fees, the corporation
commission shall issue a license or permit to such applicant.

      Sec.  22. K.S.A. 66-1,115a is hereby amended to read as follows: 66-
1,115a. Notwithstanding the provisions of K.S.A. 66-1,112b and 66-1,114,
and amendments thereto, the commission may issue or grant contract
carrier permits and common public motor carrier certificates or aban-
donments thereof without a formal hearing when the request for such
issuance, grant or abandonment is made by verified application, and
proper notice has been given in accordance with K.S.A. 66-1,112b and
66-1,114, and amendments thereto, if no protests are lodged against the
granting of the application and if the applicant demonstrates the applicant
is fit, willing and able to perform such service and is in compliance with
the commission's safety rules and regulations. For applications of public
motor carriers transporting household goods or passengers, if the com-
mission finds that evidence shows that the proposed service is inconsistent
with the public convenience and necessity, the commission shall not grant
the application.

      Sec.  23. K.S.A. 66-1,116 is hereby amended to read as follows: 66-
1,116. (a) It shall be unlawful for a public motor carrier of property, of
household goods or of passengers, or a contract motor carrier of property
or of passengers, to operate in interstate commerce regulated by the rel-
evant federal agency without registering its motor vehicles in its base state
pursuant to 49 U.S.C. 14504 in order to operate in Kansas.

      (b) It shall be unlawful for a public motor carrier of property, of
household goods or of passengers, a contract motor carrier of property
or of passengers, or a private motor carrier of property which is exempt
from federal regulations, to operate in interstate commerce within this
state, without having furnished the corporation commission, in writing
such information as the commission may request covering observance of
state police regulations and the payments of the fees. This act shall apply
to all persons and motor vehicles engaged in interstate commerce only to
the extent permitted by the constitution and laws of the United States.

      Sec.  24. K.S.A. 66-1,119 is hereby amended to read as follows: 66-
1,119. No public motor carrier authorized by this act to operate shall
change, abandon or discontinue any service established by this act or
operations under any certificate of convenience and necessity issued for
carriers of household goods or passengers without consent of the com-
mission after written application. Failure of any motor carrier to annually
renew its authority, certificate or permit in a timely manner shall result
in a termination of that motor carrier's authority by operation of law. A
list of applications for changes to, abandonments of or discontinuances of
any authority, as well as any abandonments of authority by operation of
law for failure to renew, shall be published on the commission's web site.

      Sec.  25. K.S.A. 66-1,126 is hereby amended to read as follows: 66-
1,126. Any person who shall operate as any carrier to which this act applies
without first obtaining a certificate, permit or license or in violation of
any of the terms thereof, or who fails to make any return or report re-
quired by this act or by the commission, or who denies to the commission
access to such carrier's books or records, or who fails to comply with any
commission order requiring the payment of a penalty, orders requiring
the cease and desist of certain operations or orders placing a motor carrier
out of service, shall be guilty of a misdemeanor and shall be punished as
provided in K.S.A. 66-1,130, and amendments thereto.

      Sec.  26. K.S.A. 66-1,128 is hereby amended to read as follows: 66-
1,128. (a) Except as provided in subsection (c) or pursuant to 49 U.S.C.
14504, no certificate, permit, or license shall be issued by the state cor-
poration commission to any public motor carrier of property, household
goods or passengers, contract motor carrier of property or passengers or
private motor carrier of property, until the applicant has filed with the
commission a liability insurance policy approved by the commission, in
such reasonable amounts as the commission determines by rules and reg-
ulations is necessary to adequately protect the interest of the public with
due regard to the number of persons and amount of property involved.
Such amounts shall not be less than $100,000 for personal injury or death
to any one person in any one accident, $300,000 for injury or death to
two or more persons in any one accident and $50,000 for loss to property
of others in any one accident, which liability insurance shall bind the
obligors to pay compensation for injuries to persons and loss of or damage
to property resulting from the negligent operation of such carrier.

      (b) The liability insurance policy required to be filed by any resident
applicant shall be in an insurance company or association authorized to
transact business in this state. Such policy of any nonresident applicant
may be afforded by an insurance company not authorized to do business
in this state which has given the commissioner of insurance of this state
a power of attorney authorizing such commissioner to accept service on
its behalf of notice or process in any action upon such policy. Such com-
pany not authorized to do business in this state shall have on file with
such commissioner a form as prescribed by subsection (b) of K.S.A. 40-
3106, and amendments thereto. A certificate of any insurance company
or association, in a form approved by the state corporation commission
certifying that there is in effect the liability insurance required by this
section, may be filed in lieu of the insurance policy itself. In the event
such certificate is filed, such company shall furnish to the commission
upon its request a duplicate original of the insurance policy and all en-
dorsements thereon. No other or additional bonds or licenses than those
prescribed in this act shall be required of any motor carrier by any city
or town or other agency of the state.

      (c) Any public motor carrier of property, household goods or passen-
gers, contract motor carrier of property or passengers or private motor
carrier of property in whose name more than 25 motor vehicles are reg-
istered may qualify as a self-insurer by obtaining a certificate of self-
insurance from the commissioner of insurance. Upon application of any
such carrier, the commissioner of insurance may issue a certificate of self-
insurance, if the commissioner is satisfied that such carrier is possessed
and will continue to be possessed of ability to pay any judgment obtained
against such carrier arising out of the ownership, operation, maintenance
or use of any motor vehicle registered in such carrier's name.

      (d) Upon notice and a hearing in accordance with the provisions of
the Kansas administrative procedure act, the commissioner of insurance
may cancel a certificate of self-insurance upon reasonable grounds. Fail-
ure to pay any judgment against a self-insurer, arising out of the owner-
ship, operation, maintenance or use of a motor vehicle registered in such
self-insurer's name, within 30 days after such judgment shall have become
final, shall constitute reasonable grounds for the cancellation of a certif-
icate of self-insurance.

      Sec.  27. K.S.A. 66-1,129 is hereby amended to read as follows: 66-
1,129. (a) The commission shall adopt rules and regulations necessary to
carry out the provisions of this act. No public motor carrier of property,
household goods or passengers, contract motor carrier of property or
passengers or private motor carrier of property shall operate or allow the
operation of any motor vehicle on any public highway in this state except
within the provisions of the rules and regulations adopted by the com-
mission. Rules and regulations adopted by the commission shall include:

      (1) Every vehicle unit shall be maintained in a safe and sanitary con-
dition at all times.

      (2) Every driver of a public motor carrier, operating as a carrier of
intrastate commerce within this state, shall be at least 18 years of age.
Every driver of a contract motor carrier or private motor carrier, oper-
ating as a carrier of intrastate commerce within this state, shall be at least
16 years of age. All such drivers shall be competent to operate the motor
vehicle under such driver's charge.

      (3) Minimum age requirements for every driver of a motor carrier,
operating as a carrier of interstate commerce, shall be consistent with
federal motor carrier regulations.

      (4) Hours of service for operators of all motor carriers to which this
act applies shall be fixed by the commission.

      (5) Accidents arising from or in connection with the operation of mo-
tor carriers shall be reported to the commission within the time, in the
detail and in the manner as the commission requires.

      (6) Every motor carrier shall have attached to each unit or vehicle
distinctive marking adopted by the commission.

      (7) Motor carrier transportation requirements that are consistent
with continuation of the federal motor carrier safety assistance program
and other federal requirements concerning transportation of hazardous
materials.

      (b) No rules and regulations adopted by the commission pursuant to
this section shall require the operator of any motor vehicle having a gross
vehicle weight rating or gross combination weight rating of not more than
10,000 pounds to submit to a physical examination, unless required by
federal laws or regulations.

      (c) Any rules and regulations of the commission, adopted pursuant
to this section, shall not apply to the following, while engaged in the
carriage of intrastate commerce in this state:

      (1) The owner of livestock or producer of farm products transporting
livestock of such owner or farm products of such producer to market in
a motor vehicle of such owner or producer, or the motor vehicle of a
neighbor on the basis of barter or exchange for service or employment,
or to such owner or producer transporting supplies for the use of such
owner or producer in or producer, or in the motor vehicle of a neighbor
on the basis of barter or exchange for service or employment.

      (2) The transportation of children to and from school, or to motor
vehicles owned by schools, colleges, and universities, religious or chari-
table organizations and institutions, or governmental agencies, when used
to convey students, inmates, employees, athletic teams, orchestras, bands
or other similar activities.

      (3)  Motor (A) Except for motor vehicles under subparagraph (B),
motor vehicles, with a gross vehicle weight rating, as defined in subsection
(s) of K.S.A. 66-1,109, and amendments thereto, of 26,000 pounds or less,
carrying tools, property or material belonging to the owner of the vehicle,
and used in repair, building or construction work, not having been sold
or being transported for the purpose of sale, except vehicles transporting
hazardous materials which require placards.

      (B) Except vehicles transporting hazardous materials which require
placards, motor vehicles, with a gross vehicle weight rating of 26,000
pounds or less, carrying tools, property or material belonging to the owner
of the vehicle and used in repair, building or construction work and such
tools, property or material are being transported to or from an active
construction site located within a radius of 25 miles of the principal place
of business of the motor carrier.

      (4) Persons operating motor vehicles which have an ad valorem tax
situs in and are registered in the state of Kansas, and used only to trans-
port grain from the producer to an elevator or other place for storage or
sale for a distance of not to exceed 50 miles.

      (5) The operation of hearses, funeral coaches, funeral cars or am-
bulances by motor carriers.

      (6) Motor vehicles owned and operated by the United States, the
District of Columbia, any state, any municipality or any other political
subdivisions of this state.

      (7) Any motor vehicle with a normal seating capacity of not more
than the driver and 15 passengers while used for vanpooling or otherwise
not for profit in transporting persons who, as a joint undertaking, bear or
agree to bear all the costs of such operations, or motor vehicles with a
normal seating capacity not more than the driver and 15 passengers for
not-for-profit transportation by one or more employers of employees to
and from the factories, plants, offices, institutions, construction sites or
other places of like nature where such persons are employed or accus-
tomed to work.

      (8) Motor vehicles used to transport water for domestic purposes or
livestock consumption.

      (9) The operation of vehicles used for servicing, repairing or trans-
porting of implements of husbandry, as defined in K.S.A. 8-1427, and
amendments thereto, by a person actively engaged in the business of
buying, selling or exchanging implements of husbandry, if such operation
is within 100 miles of such person's established place of business in this
state, unless the implement of husbandry is transported on a commercial
motor vehicle.

      Sec.  28. K.S.A. 66-1,129a is hereby amended to read as follows: 66-
1,129a. (a) The commission, at any time for good cause shown, may sus-
pend the operation of any motor carrier subject to economic or safety
rules and regulations adopted by the commission. Upon notice and an
opportunity to be heard in accordance with the provisions of the Kansas
administrative procedure act, the commission may revoke, amend, initiate
sanctions or fine any motor carrier who has a certificate, license or permit
issued by the commission or is subject to the safety rules and regulations
adopted by the commission. Any motor carrier suspended prior to a hear-
ing must be afforded the opportunity of a hearing on the matter. If such
a hearing is requested, the hearing shall be held within 10 days of the
request.

      (b) The director of the commission's transportation division, at any
time for good cause shown, may request the Kansas highway patrol to
impound a motor carrier's vehicle or vehicles when that motor carrier
has:

      (1) Failed to comply with an out-of-service order;

      (2) failed to comply with a cease or desist order;

      (3) failed to obtain commission authority to operate;

      (4) failed to pay a commission-assessed civil penalty; or

      (5) has otherwise failed to comply with a commission order. Any mo-
tor carrier whose vehicle is impounded prior to a hearing must be afforded
the opportunity of a hearing on the matter. If such a hearing is requested,
the hearing shall be held within 10 days of the request.

      (c) The commission is authorized to enter into any contracts or agree-
ments necessary with the superintendent of the Kansas highway patrol,
in order to provide facilities and personnel to accomplish the impounding
of vehicles.

      (d) If the owner of a motor vehicle which has been impounded pur-
suant to this section refuses to pay any towing, impoundment, storage or
other fees relating to the impoundment of such vehicle or fails to take
possession of such vehicle within 30 days following the date of the expi-
ration of the impoundment period, such vehicle shall be deemed aban-
doned and the vehicle may be disposed of by the person having possession
of such vehicle. If the person having possession of such vehicle is a public
agency, disposition of such vehicle shall be in compliance with the pro-
cedures for notice and public auction provided by paragraph (2) of sub-
section (a) of K.S.A. 8-1102, and amendments thereto. If the person having
possession of such vehicle is not a public agency, disposition of such ve-
hicle shall be in compliance with K.S.A. 8-1103 through 8-1108, and
amendments thereto.

      Sec.  29. K.S.A. 66-1,130 is hereby amended to read as follows: 66-
1,130. Every carrier to which this act applies and every person who vio-
lates or who procures, aids or abets in the violating of any provision of
this act, or who fails to obey any order, decision or rule and regulation of
the commission, or who procures or aids or abets any person in his failure
to obey such order, decision or rule and regulation, shall be deemed guilty
of a misdemeanor and upon conviction shall be punished by a fine of not
exceeding $500. The inspectors designated by the commission shall have
all the lawful powers of peace officers to enforce this act in any county
or city of this state.

      Sec.  30. K.S.A. 66-1,139 is hereby amended to read as follows: 66-
1,139. (a) All interstate regulated public motor carriers of property, of
household goods or of passengers or contract motor carriers of property
or of passengers who operate a motor vehicle in Kansas shall register their
motor vehicles in their base state pursuant to 49 U.S.C. 14504, unless
exempted under the provision of K.S.A. 66-1,109, and amendments
thereto.

      (b) All intrastate public motor carriers of property, household goods
or passengers, contract motor carriers of property or passengers, and pri-
vate motor carriers of property shall register with the state corporation
commission all trucks or truck tractors as defined by K.S.A. 8-126, and
amendments thereto, and all other passenger vehicles used to transport
persons for hire, used in the operation of their business as such, except
those used in operations exempted under the provisions of K.S.A. 66-
1,109, and amendments thereto.

      (c) Interstate motor carriers which have been granted authority by
the commission to transport commodities exempt from the jurisdiction
of the relevant federal authority and who operate for hire or who operate
as private motor carriers shall register all trucks or truck tractors as de-
fined by K.S.A. 8-126, and amendments thereto, and all other passenger
vehicles used to transport persons for hire, used in the operation of their
business as such, except those used in operations exempted under the
provisions of K.S.A. 66-1,109, and amendments thereto. For the purpose
of assisting in paying the cost of supervision and regulation of motor
carriers, every such carrier shall annually pay to the commission for each
calendar year a regulatory fee of $10 for each truck, truck tractor or
passenger vehicle registered with the commission. No fee shall be
charged for a trailer or semitrailer. Interstate motor carriers that are al-
ready registered pursuant to subsection (a), shall not be required to reg-
ister under this subsection.

      (d) All applications for registration shall be made on forms furnished
by the commission. Applications for registration of interstate common or
contract motor carriers shall include on the application the quantity of
trucks, truck tractors or passenger vehicles used by the motor carriers on
which a fee is required to be paid. Applications for registration of intra-
state common or contract motor carriers, private motor carriers, and in-
terstate exempt motor carriers shall include the complete vehicle iden-
tification numbers and the year and make of all trucks, truck tractors or
passenger vehicles used by the motor carrier, on which a fee is required
to be paid, and the application shall be accompanied by the required fee.
The fees shall be due January 1 and shall be paid not later than January
15. Upon receipt of the application and fee, the commission shall issue
to the carrier appropriate credentials for each vehicle registered.

      (e) The commission shall remit all moneys received by it or for it in
payment of fees imposed under this section to the state treasurer in ac-
cordance with the provisions of K.S.A. 75-4215, and amendments thereto.
Upon receipt of each such remittance, the state treasurer shall deposit
the entire amount in the state treasury to the credit of the motor carrier
license fees fund.

      Sec.  31. K.S.A. 66-1,140 is hereby amended to read as follows: 66-
1,140. (a) The commission shall make reasonable rules and regulations
specifying circumstances under which substitute or extra trucks, truck
tractors or passenger vehicles to be used temporarily in cases of emer-
gency or for special occasional trips by carriers currently licensed by the
commission may be registered and shall prescribe and collect a reasonable
registration fee therefor, not exceeding $2.50 $10 for each truck, truck
tractor or passenger vehicle. The term of such registration shall be for
such period of time as the commission shall prescribe by rules and reg-
ulations.

      (b) The commission shall also provide for special registration for
trucks, truck tractors or passenger vehicles not registered under the pro-
visions of K.S.A. 66-1,139, and amendments thereto, which enter the state
only on an occasional trip or in temporary service and shall collect $5 $15
as a fee therefor.

      (c) By contract entered into by the commission and, the superinten-
dent of the Kansas highway patrol and the secretary of the department of
revenue, the commission may designate the superintendent as the agent
and secretary as agents authorized to provide the special registrations
under either subsection (a) or (b) so that such registrations will be ob-
tainable at motor carrier inspection stations and department of revenue
offices. In such event, the superintendent of the Kansas highway patrol
or the superintendent's designee and the secretary or the secretary's des-
ignee may provide such special registrations pursuant to the terms and
conditions of the applicable contract. The commission or its designated
agent shall acknowledge special registration under either subsection (a)
or (b), which acknowledgment shall accompany the vehicle and be used
and accepted as evidence of such registration; and when necessary, such
acknowledgment shall be by telegram.

      Sec.  32. K.S.A. 66-1313a is hereby amended to read as follows: 66-
1313a. Except as otherwise authorized under other laws of this state, a
motor carrier who holds a certificate of convenience and necessity, a
certificate of public service, a contract carrier permit, a private carrier
permit or an interstate license from the state corporation commission,
upon application to the commission, may be designated to establish an
authorized inspection station for the inspection of the motor vehicles,
trailers and semitrailers operated in this state by such motor carrier for
compliance with the equipment statutes and rules and regulations of this
state. Such inspection station shall be located in Kansas. If the condition
of the motor vehicle, trailer or semitrailer is found to be in compliance
with the laws of this state, the authorized inspection station shall issue a
certificate of inspection stating its approval and the date of the inspection.
No certificate shall be issued unless equipment not in compliance is first
repaired or corrected and records of such repairs or corrections are main-
tained by the authorized inspection station. Certificates issued under this
section shall be valid for 12 months from the date of issue. Every certif-
icate of approval issued pursuant to this section shall be issued in tripli-
cate. One copy of such certificate shall be carried in the motor vehicle of
the combination of vehicles of which a trailer or semitrailer is a part or
in the motor vehicle if applicable to the motor vehicle, during the time
such certificate is valid or in effect, one copy shall be retained by the
authorized inspection station as prescribed by rules and regulations of the
commission and the third copy shall be returned to the commission. Such
equipment inspection records shall be made available to the commission
upon request. The commission shall adopt rules and regulations for the
administration of this section and shall establish a schedule of fees and
charges governing the cost of administration of such authorized inspection
stations.

      Sec.  33. K.S.A. 79-6a01 is hereby amended to read as follows: 79-
6a01. The director of property valuation shall value and assess annually
the over-the-road motor vehicles and rolling equipment of motor carriers
described in this act. The local deputy assessor shall value and assess
within the taxing district where located all other property, real and per-
sonal, belonging to such motor carriers.

      As used in this act, ``over-the-road motor vehicles and rolling equip-
ment'' shall include all motor-driven vehicles, trailers, semitrailers, buses
and trucks owned, used or operated in the state of Kansas by such motor
carriers in the transportation of persons or property other than motor
vehicles and rolling equipment used solely or mainly for local transpor-
tation in a particular community or local area, or for local pickup and
delivery, or passenger automobiles used for purposes other than trans-
portation of persons or property for hire. ``Motor carriers'' as used in this
act shall include every person, firm or corporation who or which holds a
certificate of convenience and necessity, a certificate of public service, a
contract carrier permit, or an interstate license as a common, contract or
exempt carrier from the corporation commission of the state of Kansas
or is required to register motor carrier equipment pursuant to 49 U.S.C.
11506.

      Sec.  34. K.S.A. 79-6a02 is hereby amended to read as follows: 79-
6a02. On or before the twentieth day of March 20 in each year every
person, firm or corporation which was a motor carrier on the first day of
January 1 of said such year and who or which owned, used or operated
any over-the-road motor vehicles or rolling equipment in the state of
Kansas during the preceding year shall (if a firm or corporation by its
president, secretary or principal acting officer or agent) return to the
director of property valuation, upon forms furnished by said the director,
a sworn statement or schedule as follows:

      1. A list of all certificates, licenses and permits which have been is-
sued to the operator as a motor carrier by the Kansas state corporation
commission.

      2. The total number of miles for which all over-the-road motor ve-
hicles used in the state of Kansas were operated in Kansas and everywhere
during the calendar year prior to making such report.

      3. The complete list of over-the-road vehicles and rolling equipment
owned, used or operated in the state of Kansas by said such motor carrier
during the preceding calendar year and giving the name and number,
model and value of the same: Provided,, except that interchange equip-
ment and trip-leased equipment shall be listed only by the owner.

      4. In case any motor carrier holding a certificate of convenience and
necessity, a contract carrier permit or an interstate license as a common,
contract or exempt carrier from the corporation commission of the state
of Kansas between January 1 and March 1 of any year did not own, use
or operate any over-the-road motor vehicle or rolling equipment in the
state of Kansas during the preceding calendar year he or she such motor
carrier shall on or before the twentieth day of March 20 of such year file
with the director of property valuation a complete list and number of
over-the-road motor vehicles and rolling equipment owned, used or op-
erated by him or her such motor carrier in the state of Kansas between
January 1 and March 1 of the year in which such list is filed together with
a verified statement estimating the number of miles he or she such motor
carrier expects such equipment to be operated in the state of Kansas and
everywhere during such year.

      5. In case any motor carrier required to file a statement under the
provisions of this act fails to make and file such statement on or before
the twentieth day of March 20, the director of property valuation shall,
after he or she the director has ascertained the value of the property, of
such motor carrier from any other sources available to him or her the
director, add fifty percent (50%) 50% additional value as a penalty for
failure to file a report, but such assessment shall not relieve the motor
carrier from the duty to file such report or statement: Provided,, except
that for good cause shown the director of property valuation may extend
the time in which to make and file such statement: Provided further,,
except that whenever, in the judgment of the director of property valua-
tion the failure of any motor carrier to comply with this provision is due
to a good and reasonable cause, the director of property valuation may at
his or her the director's discretion waive or reduce any of the penalty
herein provided upon making a record of his or her the director's reason
therefor. In the event a motor carrier shall file a statement for any year
within one year after such statement was due, the director of property
valuation shall recompute the assessment, tax and penalty on the basis of
said such statement.

      Sec.  35. K.S.A. 79-6a03 is hereby amended to read as follows: 79-
6a03. The director of property valuation shall value and assess all over-
the-road motor vehicles owned, used and operated in the state of Kansas
during the preceding calendar year by every motor carrier for the purpose
of taxation by the state of Kansas in an amount to be determined in the
following manner and according to the following method:

      (1) The true value of all over-the-road motor vehicles and rolling
equipment operated in the state of Kansas shall be determined;

      (2) the ratio which the total number of miles of the equipment listed
operated in the state of Kansas bears to the total number of miles oper-
ated everywhere by such equipment shall be determined;

      (3) the assessed value of all over-the-road motor vehicles and rolling
equipment owned, used or operated in the state of Kansas by said such
motor carrier shall be determined by multiplying the true value by the
mileage ratio;

      (4) the amount so determined shall be the value and assessment of
all over-the-road motor vehicles and rolling equipment owned, used or
operated in the state of Kansas by said such motor carrier in the state of
Kansas: Provided,, except that if any motor carrier who or which holds a
certificate of convenience and necessity, a contract carrier permit, or an
interstate license as a common, contract or exempt carrier from the cor-
poration commission of the state of Kansas between January 1 and March
1 of any year did not own, use or operate any over-the-road motor vehicles
or rolling equipment in Kansas during the preceding calendar year, the
director of property valuation shall determine the mileage ratio of miles
operated in the state of Kansas to miles operated everywhere by use of
the estimate of mileage furnished by such motor carrier, and apply the
same to the assessed valuation of the equipment listed by said such motor
carrier to determine the assessed value of such equipment and the tax
due thereon; and in any such case, when the carrier files his or her such
carrier's return the following year, showing the actual mileage of such
vehicles in the state of Kansas and everywhere during such year, the
director of property valuation shall recompute the tax and refund any
excess tax paid by such carrier, or if an additional amount of tax is deter-
mined to be due from the taxpayer, said such additional amount shall
become due upon mailing of notice of such additional tax to the motor
carrier by the director of property valuation, which additional tax may be
collected as provided in K.S.A. 79-6a07 and 79-6a11, and amendments
thereto.

 Sec.  36. K.S.A. 8-142, 8-2107, 32-1009, 44-503c, 60-305a, 65-1626,
65-4101, 65-4116, 65-7004, 66-1,105, 66-1,108, 66-1,109, 66-1,111, 66-
1,112, 66-1,112a, 66-1,112b, 66-1,112c, 66-1,112d, 66-1,112e, 66-1,112f,
66-1,112h, 66-1,114, 66-1,114b, 66-1,115, 66-1,115a, 66-1,116, 66-1,119,
66-1,126, 66-1,128, 66-1,129, 66-1,129a, 66-1,130, 66-1,139, 66-1,140, 66-
1a01, 66-1313a, 79-6a01, 79-6a02 and 79-6a03 and K.S.A. 2002 Supp. 8-
2,127 are hereby repealed.

 Sec.  37. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 21, 2003.
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