May 3, 1998


Journal of the House


SIXTY-FIFTH DAY
______
Hall of the House of Representatives, Topeka, KS,
Sunday, May 3, 1998, 2:00 p.m. 
 The House met pursuant to adjournment with Speaker pro tem Wagle in the chair.

 The roll was called with 121 members present.

 Reps. Geringer, O'Neal and Packer were excused on excused absence by the Speaker.

 Present later: Rep. Packer.

 Prayer by Chaplain Washington:

      Heavenly Father,

       We realize it is yours to bring this legislative session to closure.

       We came today, needing:

                  Your ear to hear us, Your eye to look upon us,

                  Your word to speak to us,

                  Your wisdom to guide us,

                  Your hand to uphold us,

                  Your shield to guard and protect us.

       Open our eyes to Your will and Your way. Let us exclaim along with the Psalmist
      in Psalms 27:1, ``The Lord is my light and my salvation.''

       I come in the name of Jesus the Christ. Thank You Father, for hearing this prayer.
      Amen and Amen.

COMMUNICATIONS FROM STATE OFFICERS
 From Andy Tompkins, Commissioner, Kansas State Department of Education, in ac-
cordance with K.S.A. 72-4415, the Kansas Vocational Education Accountability Report for
FY 1997; also, in accordance with K.S.A. 72-4451, the Kansas-Training Information Program
Report.

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

INTRODUCTION OF ORIGINAL MOTIONS
 On motion of Rep. Jennison, pursuant to subsection (k) of Joint Rule 4 of the Joint Rules
of the Senate and House of Representatives, the rules were suspended for the purpose of
considering SB 516; HB 2868.

MOTIONS TO CONCUR AND NONCONCUR
 On motion of Rep. Schwartz to concur in Senate amendments to HB 2868, the motion
did not prevail and the bill remains in conference.

 On roll call, the vote was: Yeas 52; Nays 69; Present but not voting: 0; Absent or not
voting: 3.

 Yeas: Allen, Aurand, Ballou, Beggs, Benlon, Boston, Campbell, Cook, Dahl, Dreher,
Edmonds, Faber, Farmer, Feuerborn, Franklin, Freeborn, Gilmore, Gregory, Hayzlett,
Holmes, Horst, Howell, Huff, Hutchins, Jennison, Johnson, Kejr, Phil Kline, Phill Kline,
Lane, P. Long, Mason, Mays, Mollenkamp, Morrison, Myers, Neufeld, O'Connor, Osborne,
Palmer, J. Peterson, Powers, Presta, Ray, Schwartz, Shallenburger, Shore, Tanner, Toplikar,
Vickrey, Vining, Wilson.

 Nays: Adkins, Alldritt, Ballard, Burroughs, Carmody, Compton, Correll, Cox, Crow,
Dean, Dillon, Empson, Findley, Flaharty, Flora, Flower, Garner, Gilbert, Glasscock, Grant,
Haley, Helgerson, Henderson, Henry, Humerickhouse, Johnston, Kirk, Klein, Krehbiel,
Kuether, Landwehr, Larkin, M. Long, Mayans, McClure, McCreary, McKechnie, McKin-
ney, Minor, Nichols, Pauls, E. Peterson, Phelps, Pottorff, Powell, Reardon, Reinhardt, Ruff,
Samuelson, Sawyer, Sharp, Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swen-
son, Thimesch, Toelkes, Tomlinson, Wagle, Weber, Weiland, Wells, Welshimer, Wempe,
Wilk.

 Present but not voting: None.

 Absent or not voting: Geringer, O'Neal, Packer.

CONFERENCE COMMITTEE REPOR
    Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 516, submits the following report:

    The Senate accedes to all House amendments to the bill, and your committee on con-
ference further agrees to amend the bill, as printed with House Committee of the Whole
amendments, as follows:

    On page 7, in line 43, after ``crimes'' by inserting ``or in grid blocks 3-E, 3-F, 3-G, 3-H,
3-I, 4-E or 4-F of the sentencing guidelines grid for drug crimes'';

    On page 8, in line 3, after ``crimes'' by inserting ``or in grid blocks 3-E, 3-F, 3-G, 3-H, 3-
I, 4-E or 4-F of the sentencing guidelines grid for drug crimes ``; in line 5, by striking ``and''
and inserting a comma; in line 7, after ``thereto'' by inserting ``or a community intermediate
sanction center''; in line 8, after ``camp'' by inserting ``or a community intermediate sanction
center''; in line 9, after ``camp's'' by inserting ``or a community intermediate sanction cen-
ter's''; in line 11, after ``camp'' by inserting ``or a community intermediate sanction center'';

    On page 9, by striking all in lines 27 through 43;

    On page 10, by striking all in lines 1 through 14 and inserting the following new sections:

    ``Sec. 3. K.S.A. 1997 Supp. 22-3717 is hereby amended to read as follows: 22-3717. (a)
Except as otherwise provided by this section, K.S.A. 1993 Supp. 21-4628 prior to its repeal
and K.S.A. 21-4635 through 21-4638 and amendments thereto, an inmate, including an
inmate sentenced pursuant to K.S.A. 21-4618 and amendments thereto, shall be eligible for
parole after serving the entire minimum sentence imposed by the court, less good time
credits.

    (b) (1) Except as provided by K.S.A. 21-4635 through 21-4638 and amendments
thereto, an inmate sentenced to imprisonment for the crime of capital murder, or an inmate
sentenced for the crime of murder in the first degree based upon a finding of premeditated
murder, committed on or after July 1, 1994, shall be eligible for parole after serving 25 years
of confinement, without deduction of any good time credits.

    (2) Except as provided by subsection (b)(1) or (b)(4), K.S.A. 1993 Supp. 21-4628 prior
to its repeal and K.S.A. 21-4635 through 21-4638, and amendments thereto, an inmate
sentenced to imprisonment for an off-grid offense committed on or after July 1, 1993, shall
be eligible for parole after serving 15 years of confinement, without deduction of any good
time credits.

    (3) Except as provided by K.S.A. 1993 Supp. 21-4628 prior to its repeal, an inmate
sentenced for a class A felony committed before July 1, 1993, including an inmate sentenced
pursuant to K.S.A. 21-4618 and amendments thereto, shall be eligible for parole after serving
15 years of confinement, without deduction of any good time credits.

    (4) An inmate sentenced to imprisonment for a violation of subsection (a) of K.S.A. 21-
3402 and amendments thereto committed on or after July 1, 1996, shall be eligible for
parole after serving 10 years of confinement without deduction of any good time credits.

    (c) Except as provided in subsection (e), if an inmate is sentenced to imprisonment for
more than one crime and the sentences run consecutively, the inmate shall be eligible for
parole after serving the total of:

    (1) The aggregate minimum sentences, as determined pursuant to K.S.A. 21-4608 and
amendments thereto, less good time credits for those crimes which are not class A felonies;
and

    (2) an additional 15 years, without deduction of good time credits, for each crime which
is a class A felony.

    (d) (1) Persons sentenced for crimes, other than off-grid crimes, committed on or after
July 1, 1993, will not be eligible for parole, but will be released to a mandatory period of
postrelease supervision upon completion of the prison portion of their sentence as follows:

    (A) Except as provided in subparagraphs (C) and (D), persons sentenced for nondrug
severity level 1 through 6 crimes and drug severity levels 1 through 3 crimes must serve 36
months, plus the amount of good time earned and retained pursuant to K.S.A. 21-4722 and
amendments thereto, on postrelease supervision.

    (B) Except as provided in subparagraphs (C) and (D), persons sentenced for nondrug
severity level 7 through 10 crimes and drug severity level 4 crimes must serve 24 months,
plus the amount of good time earned and retained pursuant to K.S.A. 21-4722 and amend-
ments thereto, on postrelease supervision.

    (C) (i) The sentencing judge shall impose the postrelease supervision period provided
in subparagraph (d)(1)(A) or (d)(1)(B), unless the judge finds substantial and compelling
reasons to impose a departure based upon a finding that the current crime of conviction
was sexually violent or sexually motivated. In that event, departure may be imposed to extend
the postrelease supervision to a period of up to 60 months.

    (ii) If the sentencing judge departs from the presumptive postrelease supervision period,
the judge shall state on the record at the time of sentencing the substantial and compelling
reasons for the departure. Departures in this section are subject to appeal pursuant to K.S.A.
21-4721 and amendments thereto.

    (iii) In determining whether substantial and compelling reasons exist, the court shall
consider:

    (a) Written briefs or oral arguments submitted by either the defendant or the state;

    (b) any evidence received during the proceeding;

    (c) the presentence report, the victim's impact statement and any psychological evalu-
ation as ordered by the court pursuant to subsection (e) of K.S.A. 21-4714 and amendments
thereto; and

    (d) any other evidence the court finds trustworthy and reliable.

    (iv) The sentencing judge may order that a psychological evaluation be prepared and
the recommended programming be completed by the offender. The department of correc-
tions or the parole board shall ensure that court ordered sex offender treatment be carried
out.

    (v) In carrying out the provisions of subparagraph (d)(1)(C), the court shall refer to
K.S.A. 21-4718 and amendments thereto.

    (vi) Upon petition, the parole board may provide for early discharge from the post-
release supervision period upon completion of court ordered programs and completion of
the presumptive postrelease supervision period, as determined by the crime of conviction,
pursuant to subparagraph (d)(1)(A) or (B). Early discharge from postrelease supervision is
at the discretion of the parole board.

    (vii) Persons convicted of crimes deemed sexually violent or sexually motivated, shall
be registered according to the habitual sex offender registration act, K.S.A. 22-4901 through
22-4910 and amendments thereto.

    (D) The period of postrelease supervision provided in subparagraphs (A) and (B) may
be reduced by up to 12 months based on the offender's compliance with conditions of
supervision and overall performance while on postrelease supervision. The reduction in the
supervision period shall be on an earned basis pursuant to rules and regulations adopted by
the secretary of corrections.

    (E) In cases where sentences for crimes from more than one severity level have been
imposed, the highest severity level offense will dictate the the offender shall serve the longest
period of postrelease supervision as provided by this section available for any crime upon
which sentence was imposed irrespective of the severity level of the crime. Supervision per-
iods will not aggregate.

    (2) As used in this section, ``sexually violent crime'' means:

    (A) Rape, K.S.A. 21-3502, and amendments thereto;

    (B) indecent liberties with a child, K.S.A. 21-3503, and amendments thereto;

    (C) aggravated indecent liberties with a child, K.S.A. 21-3504, and amendments thereto;

    (D) criminal sodomy, subsection (a)(2) and (a)(3) of K.S.A. 21-3505 and amendments
thereto;

    (E) aggravated criminal sodomy, K.S.A. 21-3506, and amendments thereto;

    (F) indecent solicitation of a child, K.S.A. 21-3510, and amendments thereto;

    (G) aggravated indecent solicitation of a child, K.S.A. 21-3511, and amendments
thereto;

    (H) sexual exploitation of a child, K.S.A. 21-3516, and amendments thereto;

    (I) aggravated sexual battery, K.S.A. 21-3518, and amendments thereto;

    (J) any conviction for a felony offense in effect at any time prior to the effective date
of this act, that is comparable to a sexually violent crime as defined in subparagraphs (A)
through (I), or any federal or other state conviction for a felony offense that under the laws
of this state would be a sexually violent crime as defined in this section;

    (K) an attempt, conspiracy or criminal solicitation, as defined in K.S.A. 21-3301, 21-
3302, 21-3303, and amendments thereto, of a sexually violent crime as defined in this sec-
tion; or

    (L) any act which at the time of sentencing for the offense has been determined beyond
a reasonable doubt to have been sexually motivated. As used in this subparagraph, ``sexually
motivated'' means that one of the purposes for which the defendant committed the crime
was for the purpose of the defendant's sexual gratification.

    (e) If an inmate is sentenced to imprisonment for a crime committed while on parole
or conditional release, the inmate shall be eligible for parole as provided by subsection (c),
except that the Kansas parole board may postpone the inmate's parole eligibility date by
assessing a penalty not exceeding the period of time which could have been assessed if the
inmate's parole or conditional release had been violated for reasons other than conviction
of a crime.

    (f) If a person is sentenced to prison for a crime committed on or after July 1, 1993,
while on probation, parole, conditional release or in a community corrections program, for
a crime committed prior to July 1, 1993, and the person is not eligible for retroactive
application of the sentencing guidelines and amendments thereto pursuant to K.S.A. 21-
4724 and amendments thereto, the new sentence shall not be aggregated with the old
sentence, but shall begin when the person is paroled or reaches the conditional release date
on the old sentence. If the offender was past the offender's conditional release date at the
time the new offense was committed, the new sentence shall not be aggregated with the
old sentence but shall begin when the person is ordered released by the Kansas parole board
or reaches the maximum sentence expiration date on the old sentence, whichever is earlier.
The new sentence shall then be served as otherwise provided by law. The period of post-
release supervision shall be based on the new sentence, except that those offenders whose
old sentence is a term of imprisonment for life, imposed pursuant to K.S.A. 1993 Supp. 21-
4628 prior to its repeal, or an indeterminate sentence with a maximum term of life impris-
onment, for which there is no conditional release or maximum sentence expiration date,
shall remain on postrelease supervision for life or until discharged from supervision by the
Kansas parole board.

    (g) Subject to the provisions of this section, the Kansas parole board may release on
parole those persons confined in institutions who are eligible for parole when: (1) The board
believes that the inmate should be released for hospitalization, for deportation or to answer
the warrant or other process of a court and is of the opinion that there is reasonable prob-
ability that the inmate can be released without detriment to the community or to the inmate;
or (2) the secretary of corrections has reported to the board in writing that the inmate has
satisfactorily completed the programs required by any agreement entered under K.S.A.
75-5210a and amendments thereto, or any revision of such agreement, and the board be-
lieves that the inmate is able and willing to fulfill the obligations of a law abiding citizen
and is of the opinion that there is reasonable probability that the inmate can be released
without detriment to the community or to the inmate. Parole shall not be granted as an
award of clemency and shall not be considered a reduction of sentence or a pardon.

    (h) The Kansas parole board shall hold a parole hearing at least the month prior to the
month an inmate will be eligible for parole under subsections (a), (b) and (c). At least the
month preceding the parole hearing, the county or district attorney of the county where the
inmate was convicted shall give written notice of the time and place of the public comment
sessions for the inmate to any victim of the inmate's crime who is alive and whose address
is known to the county or district attorney or, if the victim is deceased, to the victim's family
if the family's address is known to the county or district attorney. Except as otherwise
provided, failure to notify pursuant to this section shall not be a reason to postpone a parole
hearing. In the case of any inmate convicted of a class A felony the secretary of corrections
shall give written notice of the time and place of the public comment session for such inmate
at least one month preceding the public comment session to any victim of such inmate's
crime or the victim's family pursuant to K.S.A. 74-7338 and amendments thereto. If noti-
fication is not given to such victim or such victim's family in the case of any inmate convicted
of a class A felony, the board shall postpone a decision on parole of the inmate to a time at
least 30 days after notification is given as provided in this section. Nothing in this section
shall create a cause of action against the state or an employee of the state acting within the
scope of the employee's employment as a result of the failure to notify pursuant to this
section. If granted parole, the inmate may be released on parole on the date specified by
the board, but not earlier than the date the inmate is eligible for parole under subsections
(a), (b) and (c). At each parole hearing and, if parole is not granted, at such intervals there-
after as it determines appropriate, the Kansas parole board shall consider: (1) Whether the
inmate has satisfactorily completed the programs required by any agreement entered under
K.S.A. 75-5210a and amendments thereto, or any revision of such agreement; and (2) all
pertinent information regarding such inmate, including, but not limited to, the circum-
stances of the offense of the inmate; the presentence report; the previous social history and
criminal record of the inmate; the conduct, employment, and attitude of the inmate in
prison; the reports of such physical and mental examinations as have been made; comments
of the victim and the victim's family; comments of the public; official comments; and capacity
of state correctional institutions.

    (i) In those cases involving inmates sentenced for a crime committed after July 1, 1993,
the parole board will review the inmates proposed release plan. The board may schedule a
hearing if they desire. The board may impose any condition they deem necessary to insure
public safety, aid in the reintegration of the inmate into the community, or items not com-
pleted under the agreement entered into under K.S.A. 75-5210a and amendments thereto.
The board may not advance or delay an inmate's release date. Every inmate while on post-
release supervision shall remain in the legal custody of the secretary of corrections and is
subject to the orders of the secretary.

    (j) Before ordering the parole of any inmate, the Kansas parole board shall have the
inmate appear before either in person or via a video conferencing format and shall interview
the inmate unless impractical because of the inmate's physical or mental condition or ab-
sence from the institution. Every inmate while on parole shall remain in the legal custody
of the secretary of corrections and is subject to the orders of the secretary. Whenever the
Kansas parole board formally considers placing an inmate on parole and no agreement has
been entered into with the inmate under K.S.A. 75-5210a and amendments thereto, the
board shall notify the inmate in writing of the reasons for not granting parole. If an agree-
ment has been entered under K.S.A. 75-5210a and amendments thereto and the inmate has
not satisfactorily completed the programs specified in the agreement, or any revision of such
agreement, the board shall notify the inmate in writing of the specific programs the inmate
must satisfactorily complete before parole will be granted. If parole is not granted only
because of a failure to satisfactorily complete such programs, the board shall grant parole
upon the secretary's certification that the inmate has successfully completed such programs.
If an agreement has been entered under K.S.A. 75-5210a and amendments thereto and the
secretary of corrections has reported to the board in writing that the inmate has satisfactorily
completed the programs required by such agreement, or any revision thereof, the board
shall not require further program participation. However, if the board determines that other
pertinent information regarding the inmate warrants the inmate's not being released on
parole, the board shall state in writing the reasons for not granting the parole. If parole is
denied for an inmate sentenced for a crime other than a class A or class B felony or an
off-grid felony, the board shall hold another parole hearing for the inmate not later than
one year after the denial unless the parole board finds that it is not reasonable to expect
that parole would be granted at a hearing if held in the next three years or during the interim
period of a deferral. In such case, the parole board may defer subsequent parole hearings
for up to three years but any such deferral by the board shall require the board to state the
basis for its findings. If parole is denied for an inmate sentenced for a class A or class B
felony or an off-grid felony, the board shall hold another parole hearing for the inmate not
later than three years after the denial unless the parole board finds that it is not reasonable
to expect that parole would be granted at a hearing if held in the next 10 years or during
the interim period of a deferral. In such case, the parole board may defer subsequent parole
hearings for up to 10 years but any such deferral shall require the board to state the basis
for its findings.

    (k) Parolees and persons on postrelease supervision shall be assigned, upon release, to
the appropriate level of supervision pursuant to the criteria established by the secretary of
corrections.

    (l) The Kansas parole board shall adopt rules and regulations in accordance with K.S.A.
77-415 et seq., and amendments thereto, not inconsistent with the law and as it may deem
proper or necessary, with respect to the conduct of parole hearings, postrelease supervision
reviews, revocation hearings, orders of restitution, reimbursement of expenditures by the
state board of indigents' defense services and other conditions to be imposed upon parolees
or releasees. Whenever an order for parole or postrelease supervision is issued it shall recite
the conditions thereof.

    (m) Whenever the Kansas parole board orders the parole of an inmate or establishes
conditions for an inmate placed on postrelease supervision, the board:

    (1) Unless it finds compelling circumstances which would render a plan of payment
unworkable, shall order as a condition of parole or postrelease supervision that the parolee
or the person on postrelease supervision pay any transportation expenses resulting from
returning the parolee or the person on postrelease supervision to this state to answer criminal
charges or a warrant for a violation of a condition of probation, assignment to a community
correctional services program, parole, conditional release or postrelease supervision;

    (2) to the extent practicable, shall order as a condition of parole or postrelease super-
vision that the parolee or the person on postrelease supervision make progress towards or
successfully complete the equivalent of a secondary education if the inmate has not previ-
ously completed such educational equivalent and is capable of doing so;

    (3) may order that the parolee or person on postrelease supervision perform community
or public service work for local governmental agencies, private corporations organized
not-for-profit or charitable or social service organizations performing services for the com-
munity;

    (4) may order the parolee or person on postrelease supervision to pay the administrative
fee imposed pursuant to K.S.A. 1997 Supp. 22-4529 unless the board finds compelling
circumstances which would render payment unworkable; and

    (5) unless it finds compelling circumstances which would render a plan of payment
unworkable, shall order that the parolee or person on postrelease supervision reimburse the
state for all or part of the expenditures by the state board of indigents' defense services to
provide counsel and other defense services to the person. In determining the amount and
method of payment of such sum, the parole board shall take account of the financial re-
sources of the person and the nature of the burden that the payment of such sum will
impose. Such amount shall not exceed the amount claimed by appointed counsel on the
payment voucher for indigents' defense services or the amount prescribed by the board of
indigents' defense services reimbursement tables as provided in K.S.A. 22-4522 and amend-
ments thereto, whichever is less, minus any previous payments for such services.

    (n) If the court which sentenced an inmate specified at the time of sentencing the
amount and the recipient of any restitution ordered as a condition of parole or postrelease
supervision, the Kansas parole board shall order as a condition of parole or postrelease
supervision that the inmate pay restitution in the amount and manner provided in the journal
entry unless the board finds compelling circumstances which would render a plan of resti-
tution unworkable.

    (o) Whenever the Kansas parole board grants the parole of an inmate, the board, within
10 days of the date of the decision to grant parole, shall give written notice of the decision
to the county or district attorney of the county where the inmate was sentenced.

    (p) When an inmate is to be released on postrelease supervision, the secretary, within
30 days prior to release, shall provide the county or district attorney of the county where
the inmate was sentenced written notice of the release date.

    (q) Inmates shall be released on postrelease supervision upon the termination of the
prison portion of their sentence. Time served while on postrelease supervision will vest.

    (r) An inmate who is allocated regular good time credits as provided in K.S.A. 22-3725
and amendments thereto may receive meritorious good time credits in increments of not
more than 90 days per meritorious act. These credits may be awarded by the secretary of
corrections when an inmate has acted in a heroic or outstanding manner in coming to the
assistance of another person in a life threatening situation, preventing injury or death to a
person, preventing the destruction of property or taking actions which result in a financial
savings to the state.

    Sec. 4. K.S.A. 75-5217 is hereby amended to read as follows: 75-5217. (a) At any time
during release on parole, conditional release or postrelease supervision, the secretary of
corrections may issue a warrant for the arrest of a released inmate for violation of any of
the conditions of release, or a notice to appear to answer to a charge of violation. Such
notice shall be served personally upon the released inmate. The warrant shall authorize any
law enforcement officer to arrest and deliver the released inmate to a place as provided by
subsection (f). Any parole officer may arrest such released inmate without a warrant, or may
deputize any other officer with power of arrest to do so by giving such officer a written
arrest and detain order setting forth that the released inmate has, in the judgment of the
parole officer, has violated the conditions of the inmate's release. The written arrest and
detain order delivered with the released inmate by the arresting officer to the official in
charge of the institution or place to which the released inmate is brought for detention shall
be sufficient warrant for detaining the inmate. After making an arrest the parole officer shall
present to the detaining authorities a similar arrest and detain order and statement of the
circumstances of violation. Pending a hearing, as hereinafter provided in this section, upon
any charge of violation the released inmate shall remain incarcerated in the institution or
place to which the inmate is taken for detention.

    (b) Upon such arrest and detention, the parole officer shall notify the secretary of cor-
rections, or the secretary's designee, within five days and shall submit in writing a report
showing in what manner the released inmate had violated the conditions of release. After
such notification is given to the secretary of corrections, or upon an arrest by warrant as
herein provided, and the finding of probable cause pursuant to procedures established by
the secretary of a violation of the released inmate's conditions of release, the secretary shall
cause the released inmate to be brought before the Kansas parole board, its designee or
designees, for a hearing on the violation charged, under such rules and regulations as the
board may adopt. It is within the discretion of the Kansas parole board whether such hearing
requires the released inmate to appear personally before the board when such inmate's
violation results from a conviction for a new felony or misdemeanor. Relevant written state-
ments made under oath shall be admitted and considered by the Kansas parole board, its
designee or designees, along with other evidence presented at the hearing. If the violation
is established to the satisfaction of the Kansas parole board, the board may continue or
revoke the parole or conditional release, or enter such other order as the board may see fit.
Revocations of release of inmates who are on a specified period of postrelease supervision
shall be for a 180-day six-month period of confinement from the date of the revocation
hearing before the board, if the violation does not result from a conviction for a new felony
or misdemeanor. Such period of confinement may be reduced by not more than 90 days 3
months based on the inmate's conduct, work and program participating during the incar-
ceration period. The reduction in the incarceration period shall be on an earned basis pur-
suant to rules and regulations adopted by the secretary of corrections.

    (c) If the violation does result from a conviction for a new felony or misdemeanor, upon
revocation the inmate shall serve the entire remaining balance of the period of postrelease
supervision even if the new conviction did not result in the imposition of a new term of
imprisonment.

    (d) In the event the released inmate reaches conditional release date as provided by
K.S.A. 22-3718 and amendments thereto after a finding of probable cause, pursuant to
procedures established by the secretary of corrections of a violation of the released inmate's
conditions of release, but prior to a hearing before the Kansas parole board, the secretary
of corrections shall be authorized to detain the inmate until the hearing by the Kansas parole
board. The secretary shall then enforce the order issued by the Kansas parole board.

    (e) If the secretary of corrections issues a warrant for the arrest of a released inmate
for violation of any of the conditions of release and the released inmate is subsequently
arrested in the state of Kansas, either pursuant to the warrant issued by the secretary of
corrections or for any other reason, the released inmate's sentence shall not be credited
with the period of time from the date of the issuance of the secretary's warrant to the date
of the released inmate's arrest.

    If a released inmate for whom a warrant has been issued by the secretary of corrections
for violation of the conditions of release is subsequently arrested in another state, and the
released inmate has been authorized as a condition of such inmate's release to reside in or
travel to the state in which the released inmate was arrested, and the released inmate has
not absconded from supervision, the released inmate's sentence shall not be credited with
the period of time from the date of the issuance of the warrant to the date of the released
inmate's arrest. If the released inmate for whom a warrant has been issued by the secretary
of corrections for violation of the conditions of release is subsequently arrested in another
state for reasons other than the secretary's warrant and the released inmate does not have
authorization to be in the other state or if authorized to be in the other state has been
charged by the secretary with having absconded from supervision, the released inmate's
sentence shall not be credited with the period of time from the date of the issuance of the
warrant by the secretary to the date the released inmate is first available to be returned to
the state of Kansas. If the released inmate for whom a warrant has been issued by the
secretary of corrections for violation of a condition of release is subsequently arrested in
another state pursuant only to the secretary's warrant, the released inmate's sentence shall
not be credited with the period of time from the date of the issuance of the secretary's
warrant to the date of the released inmate's arrest, regardless of whether the released in-
mate's presence in the other state was authorized or the released inmate had absconded
from supervision.

    The secretary may issue a warrant for the arrest of a released inmate for violation of any
of the conditions of release and may direct that all reasonable means to serve the warrant
and detain such released inmate be employed including but not limited to notifying the
federal bureau of investigation of such violation and issuance of warrant and requesting from
the federal bureau of investigation any pertinent information it may possess concerning the
whereabouts of the released inmate.

    (f) Law enforcement officers shall execute warrants issued by the secretary of correc-
tions pursuant to subsection (a) or (d), and shall deliver the inmate named therein in the
warrant to the jail used by the county where the inmate is arrested unless some other place
is designated by the secretary, in the same manner as for the execution of any arrest war-
rant.'';

    And by renumbering sections accordingly;

    Also on page 10, by striking all in lines 38 through 43;

    By striking all on pages 11 and 12;

    On page 13, by striking all in lines 1 through 18;

    And by renumbering sections accordingly;

    Also on page 13, in line 19, after ``K.S.A.'' the first time it appears, by inserting ``75-5217,'';
in line 20, by striking ``38-1604 and 38-1624'' and inserting ``22-3717'';

    On page 1, in the title, in line 13, after ``to'' by inserting ``authorized dispositions;''; in line
15, by striking ``relating to juveniles'' and inserting ``postrelease supervision; violations of
conditions of release''; also in line 15, after ``K.S.A.'' by inserting ``75-5217,''; in line 16, by
striking ``38-''; in line 17, by striking ``1604 and 38-1624'' and inserting ``22-3717'';

                                                                                        And your committee on conference recommends the adoption of this report.

                                                                                    Tim Carmody

                                                                                    Terry Presta

                                                                                    Jim D. Garner
 
                                                                                    Conferees on part of House

                                                                                    Tim Emert

                                                                                    Edward W. Pugh

                                                                                    Greta Goodwin
 
Conferees on part of Senate

 On motion of Rep. Carmody, the conference committee report on SB 516 was adopted.

 On roll call, the vote was: Yeas 121; Nays 0; Present but not voting: 0; Absent or not
voting: 3.

Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Burroughs,
Campbell, Carmody, Compton, Cook, Correll, Cox, Crow, Dahl, Dean, Dillon, Dreher,
Edmonds, Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin,
Freeborn, Garner, Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett, Helger-
son, Henderson, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison,
Johnson, Johnston, Kejr, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr,
Lane, Larkin, M. Long, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie,
McKinney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, Osborne,
Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, Ray, Rear-
don, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showal-
ter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes,
Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe,
Wilk, Wilson.

 Nays: None.

 Present but not voting: None.

 Absent or not voting: Geringer, O'Neal, Packer.

 The House stood at ease until the sound of the gavel.

______


 Speaker Shallenburger called the House to order.

MESSAGE FROM THE SENATE
 The Senate nonconcurs in House amendments to SB 561, requests a conference and has
appointed Senators Vidricksen, Jordan and Gilstrap as conferees on the part of the Senate.

INTRODUCTION OF ORIGINAL MOTIONS
 On motion of Rep. Jennison, the House acceded to the request of the Senate for a
conference on SB 561.

 Speaker Shallenburger thereupon appointed Reps. Hayzlett, Gilmore and Dillon as con-
ferees on the part of the House.

INTRODUCTION OF ORIGINAL MOTIONS
 On motion of Rep. Jennison, pursuant to subsection (k) of Joint Rule 4 of the Joint Rules
of the Senate and House of Representatives, the rules were suspended for the purpose of
considering SB 6.

CONFERENCE COMMITTEE REPORT
    Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 6, submits the following report:

    Your committee on conference agrees to disagree and recommends that a new conference
committee be appointed;

                                                                                        And your committee on conference recommends the adoption of this report.

                                                                                    Phill Kline

                                                                                    Tony Powell

                                                                                    Bruce Larkin
 
                                                                                    Conferees on part of House

                                                                                    Audrey Langworthy

                                                                                    David R. Corbin

                                                                                    Janis K. Lee
 
Conferees on part of Senate

 On motion of Rep. Phill Kline, the conference committee report on SB 6 was adopted.

 Speaker Shallenburger thereupon appointed Reps. Phill Kline, Powell and Larkin as sec-
ond conferees on the part of the House.

 On motion of Rep. Jennison, the House recessed until 5:30 p.m.

______
Evening Session
 The House met pursuant to recess with Speaker Shallenburger in the chair.

MESSAGES FROM THE SENATE
 The Senate adopts the conference committee report to agree to disagree on SB 6, requests
a new conference committee, and has appointed Senators Langworthy, Corbin and Lee as
second conferees on the part of Senate.

 Also, announcing passage of HB 2860, as amended by S. Sub. for HB 2860.

 Announcing passage of HB 3016, as amended.

 The Senate adopts conference committee report on SB 404.

 The Senate adopts conference committee report on SB 510.

 The Senate adopts conference committee report on SB 516.

 The Senate adopts conference committee report on HB 2627.

 The Senate adopts conference committee report on HB 2684.

 The Senate adopts conference committee report on HB 2726.

 The Senate accedes to the request of the House for a conference on HB 2185 and has
appointed Senators Praeger, Hardenburger and Steineger as second conferees on the part
of the Senate.

 The Senate not adopts the conference committee report on HB 2868, requests a new
conference committee be appointed and has appointed Senators Corbin, Morris and Biggs
as second conferees on the part of the Senate.

INTRODUCTION OF ORIGINAL MOTIONS AND HOUSE RESOLUTIONS
 On emergency motion of Rep. Helgerson, HR 6023, by Reps. Helgerson, Adkins, Alldritt,
Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Burroughs, Campbell, Carmody,
Compton, Cook, Correll, Cox, Crow, Dahl, Dean, Dillon, Dreher, Edmonds, Empson, Fa-
ber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Freeborn, Garner,
Geringer, Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett, Henderson, Henry,
Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, Johnson, Johnston,
Kejr, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, M.
Long, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKinney, Minor,
Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Osborne, Packer, Pal-
mer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, Ray, Reardon,
Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showalter,
Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tom-
linson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk
and Wilson, as follows, was introduced and adopted:

HOUSE RESOLUTION No. 6023--

A RESOLUTION congratulating and commending President Jon Wefald and
Kansas State University.
    WHEREAS, Kansas State University under the leadership of President Jon Wefald has
excelled and reached national status in many areas; and

    WHEREAS, President Jon Wefald and his team at Kansas State University have en-
couraged students, faculty and staff to excel in the classroom, in the laboratory and in athletic
competition; and

    WHEREAS, Kansas State University continues to lead the nation's state universities in
Goldwater scholarship winners with 34 scholarships since the program began in 1989; and

    WHEREAS, Kansas State University ranks second in the nation among state universities
in Rhodes scholarships awarded since 1986 with six students being provided with $40,000
to $60,000 for two years of study at Oxford University in England; and

    WHEREAS, Kansas State University ranks third among state universities in Marshall
scholarships awarded since 1984 with eight students being provided with $40,000 to $60,000
to study at any university in England; and

    WHEREAS, Kansas State University ranks first among state universities in the number
of Truman scholarships awarded. Kansas State University has had 24 students selected to
receive about $30,000 for four years of study; and

    WHEREAS, Kansas State University's total of Goldwater, Rhodes, Marshall and Truman
scholars ranks first among state universities; and

    WHEREAS, Kansas State faculty have also been cited. Professor Dean Zollman was
named the Professor of the Year for the Advancement of Teaching in 1997 by the Carnegie
Foundation. In the past twelve years, six university faculty members have been awarded the
CASE Professor of the Year in Kansas by the Carnegie Foundation; and

    WHEREAS, Kansas State University has played an integral role in the state's economy
through the development of new wheat varieties planted by Kansas farmers; and

    WHEREAS, The Kansas State football team has played in five successive bowl games:
Now, therefore,

    Be it resolved by the House of Representatives of the State of Kansas: That we congrat-
ulate and commend President Jon Wefald for his outstanding leadership and Kansas State
University student scholars for their academic excellence; and

    Be it further resolved: That the Chief Clerk of the House of Representatives be directed
to provide five enrolled copies of this resolution to Dr. Jon Wefald, President, Kansas State
University, Office of the President, 110 Anderson Hall, Manhattan, Kansas 66508-7083.

INTRODUCTION OF ORIGINAL MOTIONS AND HOUSE RESOLUTIONS
 On emergency motion of Rep. Helgerson, HR 6024, by Reps. Helgerson, Adkins, Alldritt,
Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Burroughs, Campbell, Carmody,
Compton, Cook, Correll, Cox, Crow, Dahl, Dean, Dillon, Dreher, Edmonds, Empson, Fa-
ber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Freeborn, Garner,
Geringer, Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett, Henderson, Henry,
Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, Johnson, Johnston,
Kejr, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, M.
Long, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKinney, Minor,
Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, O'Neal, Osborne, Packer, Pal-
mer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, Ray, Reardon,
Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showalter,
Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tom-
linson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk
and Wilson, as follows, was introduced and adopted:

HOUSE RESOLUTION No. 6024--

A RESOLUTION congratulating and commending Gloria Timmer.


    WHEREAS, After years of devoted service to the state of Kansas, Gloria Timmer is
leaving her position as Director of the Budget to become Executive Director of the National
Association of State Budget Officers, effective June 1, 1998; and

    WHEREAS, Gloria Timmer has earned our respect and appreciation in her service as
Director of the Budget since July 1991, and demonstrated clearly her broad range of abilities
when she also assumed the responsibilities for Secretary of Administration from May 1994
to January 1995. She also offered distinguished service as a Principal Analyst for the Division
of the Budget and as a Legislative Fiscal Analyst for the Legislative Research Department;
and

    WHEREAS, Gloria Timmer has provided leadership in areas outside the budget office
by her service to the Kansas Information Resource Council and the University of Kansas
School of Social Welfare Policy Advisory Board. She also served on the Kansas Health Care
Commission. She has been a member of the Executive Committee of the National Associ-
ation of State Budget Officers since 1992, as Chair of its Health, Human Services and Justice
Committee and is the organization's immediate past President; and

    WHEREAS, Gloria Timmer has a Bachelor of Arts degree from Hope College in Hol-
land, Michigan, and a Masters of Business Administration degree from Phillips University.
She has two daughters, Tracy and Jennifer; and

    WHEREAS, Gloria Timmer has provided outstanding guidance and leadership as the
state's budget director with unquestioned integrity and unfailing professionalism. Her early
employment experience with the state of Kansas provided the knowledge and expertise to
contribute toward the state's recent years of tremendous fiscal success. She leaves the state
during a year in which the legislature is able to pass record setting reductions in taxes while
continuing to provide the full support of state operations. Her involvement in activities
outside the domain of her office have been of benefit to the state, and in her new position
will benefit the entire nation: Now, therefore,

    Be it resolved by the House of Representatives of the State of Kansas: That we congrat-
ulate and commend Gloria Timmer for her several years of outstanding service to the state
of Kansas; and

    Be it further resolved: That the Chief Clerk of the House of Representatives be directed
to provide an enrolled copy of this resolution to Gloria Timmer, Director of the Budget,
First Floor, Capitol Building, Topeka, Kansas 66612-2210.

INTRODUCTION OF ORIGINAL MOTIONS
 On motion of Rep. Jennison, pursuant to subsection (k) of Joint Rule 4 of the Joint Rules
of the Senate and House of Representatives, the rules were suspended for the purpose of
considering HB 3016; S. Sub. for HB 2860; HB 2627, 2726.

MOTIONS TO CONCUR AND NONCONCUR
 On motion of Rep. Phill Kline, the House concurred in Senate amendments to HB 3016,
An act relating to taxation; concerning treatment of sales of prepaid telephone calling cards;
amending the Kansas estate tax act; amending K.S.A. 79-3602, as amended by section 29
of 1998 Senate Bill No. 493, 79-3603, as amended by section 30 of 1998, and section 1 of
1998 Senate Bill No. 493 and repealing the existing sections; also repealing K.S.A. 79-1546.

 On roll call, the vote was: Yeas 119; Nays 0; Present but not voting: 1; Absent or not
voting: 4.

 Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Burroughs,
Campbell, Carmody, Compton, Cook, Correll, Cox, Crow, Dahl, Dean, Dillon, Dreher,
Edmonds, Empson, Faber, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Free-
born, Garner, Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett, Helgerson,
Henderson, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison,
Johnson, Johnston, Kejr, Kirk, Klein, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Lar-
kin, M. Long, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKinney,
Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, Osborne, Packer, Pal-
mer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, Ray, Reardon,
Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showalter,
Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, To-
plikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson.

 Nays: None.

 Present but not voting: Tomlinson.

 Absent or not voting: Farmer, Geringer, Phil Kline, O'Neal.

CONFERENCE COMMITTEE REPORT
 Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2627, submits the following report:

    The House accedes to all Senate amendments to the bill, and your committee on con-
ference further agrees to amend the bill, as printed with Senate Committee of the Whole
amendments, as follows:

    On page 1, by striking all in lines 26 through 43;

    On page 2, by striking all in lines 1 through 8;

    And by renumbering remaining sections accordingly;

    On page 4, in line 22, by striking ``Sec.'' and inserting ``Section'';

    On page 7, in line 25, by striking all after ``(d)''; by striking all in lines 26 through 28 and
inserting ``Effective July 1, 1999, if a juvenile is adjudicated a juvenile offender and has
previously been adjudicated a child in need of care, the Kansas juvenile justice code shall
apply to such juvenile and the Kansas code for care of children shall suspend during the
time of jurisdiction pursuant to the Kansas juvenile justice code. Prior to July 1, 1999, the
court may apply the provisions of either code to a juvenile adjudicated under both codes.'';

    Also on page 7, following line 34, by inserting the following:

    ``Sec. 4. K.S.A. 1997 Supp. 38-1624 is hereby amended to read as follows: 38-1624. (a)
By a law enforcement officer. A law enforcement officer may take an alleged juvenile of-
fender into custody when:

    (1) Any offense has been or is being committed by the juvenile in the officer's view;

    (2) the officer has a warrant commanding that the juvenile be taken into custody;

    (3) the officer has probable cause to believe that a warrant or order commanding that
the juvenile be taken into custody has been issued in this state or in another jurisdiction for
an act committed therein;

    (4) the officer has probable cause to believe that the juvenile is committing or has
committed an act which, if committed by an adult, would constitute:

    (A) A felony; or

    (B) a misdemeanor and (i) the juvenile will not be apprehended or evidence of the
offense will be irretrievably lost unless the juvenile is immediately taken into custody or (ii)
the juvenile may cause injury to self or others or damage to property or may be injured
unless immediately taken into custody; or

    (5) the officer has probable cause to believe that the juvenile has violated an order for
electronic monitoring as a term of probation.

    (b) By a court services officer. A court services officer may take a juvenile into custody
when there is a warrant commanding that the juvenile be taken into custody, when the court
services officer has probable cause to believe that a warrant or order commanding that the
juvenile be taken into custody has been issued in this state or in another jurisdiction for an
act committed therein or when there is probable cause to believe that the juvenile has
violated an order for electronic monitoring as a term of probation.

    (c) Procedure. (1) When any law enforcement officer takes an alleged juvenile offender
into custody, the juvenile shall be taken without unnecessary delay to an intake and assess-
ment worker if an intake and assessment program exists in the jurisdiction, or before the
court for proceedings in accordance with this code or, if the court is not open for the regular
conduct of business, to a court services officer, a juvenile intake and assessment worker, a
juvenile detention facility or youth residential facility which the court or the commissioner
shall have designated. The officer shall not take the juvenile to a juvenile detention facility
unless the juvenile meets one or more of the criteria listed in K.S.A. 38-1640, and amend-
ments thereto. Even if the juvenile meets one or more of such criteria, the officer shall first
consider whether taking the juvenile to an available nonsecure facility is more appropriate.

    (2) It shall be the duty of the officer to furnish the county or district attorney or the
juvenile intake and assessment worker if the officer has delivered such juvenile to the worker,
with all of the information in the possession of the officer pertaining to the juvenile; the
juvenile's parents, or other persons interested in or likely to be interested in the juvenile;
and all other facts and circumstances which caused the juvenile to be arrested or taken into
custody.

    (3) (A) When the juvenile is less than 14 years of age, no in-custody or arrest admission
or confession resulting from interrogation may be admitted into evidence unless the confes-
sion or admission was made following a consultation between the juvenile and the juvenile's
parents, guardian or attorney as to whether the juvenile will waive such juvenile's right to
an attorney and right against self-incrimination. It shall be the duty of the facility where
the juvenile has been delivered to make a reasonable effort to contact the parent or guardian
immediately upon such juvenile's arrival unless such parent or guardian is the alleged victim
or alleged co-defendant of the crime under investigation.
    (B) When a parent or guardian is the alleged victim or alleged co-defendant of the crime
under investigation and the juvenile is less than 14 years of age, no in-custody or arrest
admission or confession may be admitted into evidence unless the confession or admission
was made following a consultation between the juvenile and a parent or guardian who is
not involved in the investigation of the crime, or an attorney as to whether the juvenile will
waive such juvenile's right to an attorney and right against self-incrimination. It shall be the
duty of the facility where the juvenile has been delivered to make reasonable effort to contact
a parent or guardian who is not involved in the investigation of the crime immediately upon
such juvenile's arrival.

    (d) Release prior to detention hearing. In the absence of a court order to the contrary,
the court or officials designated by the court, the county or district attorney or the law
enforcement agency taking a juvenile into custody shall have the authority to direct the
release of the juvenile prior to the time specified by subsection (a) of K.S.A. 38-1632 and
amendments thereto. In addition, if an agreement is established pursuant to K.S.A. 38-1635,
and amendments thereto, a juvenile intake and assessment worker shall have the authority
to direct the release of a juvenile prior to a detention hearing after the completion of the
intake and assessment process if the juvenile intake and assessment worker has reason to
believe that if released the juvenile will appear for further proceedings and will not be
dangerous to self or others.

    (e) Person 18 or over taken into custody; detention and release. Whenever a person 18
years of age or more is taken into custody by a law enforcement officer for an alleged offense
which was committed prior to the time the person reached the age of 18, the officer shall
notify and refer the matter to the court for proceedings pursuant to this code, except that
the provisions of this code relating to detention hearings shall not apply to that person. If
detention is necessary, the person shall be detained in jail. Unless the law enforcement officer
took the person into custody pursuant to a warrant issued by the court and the warrant
specifies the amount of bond or indicates that the person may be released on personal
recognizance, the person shall be taken before the court of the county where the alleged
act took place or, at the request of the person, the person shall be taken, without delay,
before the nearest court. The court shall fix the terms and conditions of an appearance bond
upon which the person may be released from custody. The provisions of article 28 of chapter
22 of the Kansas Statutes Annotated and K.S.A. 22-2901 and amendments thereto relating
to appearance bonds and review of conditions and release shall be applicable to appearance
bonds provided for in this section.'';

    And by renumbering remaining sections accordingly;

    On page 11, following line 18, by inserting the following:

    ``Sec. 6. K.S.A. 1997 Supp. 38-1640 is hereby amended to read as follows: 38-1640. (a)
The following are criteria for determining whether to place a juvenile in a juvenile detention
facility pursuant to subsection (c) of K.S.A. 38-1624 or subsection (e) of K.S.A. 38-1632,
and amendments thereto:

    (1) There is oral or written verification that the juvenile is a fugitive sought for an offense
in another jurisdiction or that the juvenile is currently an escapee from a juvenile detention
facility.

    (2) The juvenile is alleged to have committed an offense which if committed by an adult
would constitute a class A, B or C felony if committed prior to July 1, 1993, or would
constitute an off-grid felony, a nondrug severity level 1, 2, 3, 4 or 5 felony or drug level 1,
2 or 3 felony if committed on or after July 1, 1993, or would constitute a crime described
in article 35 of chapter 21 of the Kansas Statutes Annotated.

    (3) The juvenile is awaiting court action on another offense which if committed by an
adult would constitute a felony.

    (4) The juvenile has a record of failure to appear in court or there is probable cause to
believe that the juvenile will flee the jurisdiction of the court.

    (5) The juvenile has a history of violent behavior toward others.

    (6) The juvenile exhibited seriously assaultive or destructive behavior at the time of
being taken into custody and continued such behavior after taken into custody.

    (7) The juvenile exhibited self-destructive behavior at the time of being taken into cus-
tody and continued such behavior after taken into custody.

    (8) The juvenile has a record of adjudication or conviction of one or more offenses
which if committed by an adult would constitute felonies.

    (9) The juvenile is a juvenile offender who has been expelled from placement in a
nonsecure facility as a result of the current alleged offense.

    (b) No person 18 years of age or more shall be placed in a juvenile detention center.
    (c) This section shall be part of and supplemental to the Kansas juvenile justice code.'';

    And by renumbering remaining sections accordingly;

    On page 17, in line 27, by striking ``9'' and inserting ``7'';

    On page 26, in line 25, by striking ``and'' and inserting a comma; also in line 25, before
the period by inserting ``and (d)'';

    On page 27, in line 3, after ``(d)'' by inserting ``The provisions of this section shall not
apply to the detention of any person 18 years of age or more who is taken into custody and
is being prosecuted in accordance with the provisions of the Kansas juvenile justice code.

    (e)'';

    Also on page 27, in line 24, by striking ``offender''; in line 28, by striking ``offender'';

    On page 36, following line 34, by inserting the following:

    ``Sec. 17. K.S.A. 38-1532 is hereby amended to read as follows: 38-1532. Upon the
filing of a petition under this code the court shall proceed by one of the following methods:

    (a) Issue summons stating the place and time at which the parties are required to appear
and answer the allegations of the petition, which shall be within 30 days of the date the
petition is filed, and deliver the summons with copies of the petition attached to the sheriff
or a person specially appointed to serve it.

    (b) If the child has been taken into protective custody under the provisions of K.S.A.
38-1542 and a temporary custody hearing is held as required by K.S.A. 38-1543, a copy of
the petition shall be served at the hearing on each interested party who is in attendance at
the hearing and a record of service made a part of the proceedings. The court shall announce
the time the parties will be required to next appear before the court. Process shall be served
on any interested party not at the temporary custody hearing.

    Upon the written request of the petitioner or the county or district attorney separate or
additional summons shall be issued to any interested party.

    The court shall attempt to notify both parents, if known.'';

    And by renumbering the remaining sections accordingly;

    Also on page 36, in line 35, by striking ``38-1531,''; also in line 35, by striking ``38-1533,'';
in line 36, before ``38-1636'' by inserting ``38-1624,'' also in line 36, after ``38-1636'' by
inserting ``38-1640,''; in line 40, by striking ``9'' and inserting ``7'';

    On page 1, in the title, in line 17, by striking ``38-''; in line 18, by striking ``1531,''; also
in line 18, by striking ``38-1533,''; in line 19, before ``38-1636'' by inserting ``38-1624,''; also
in line 19, before ``38-1663'' as it appears for the first time, by inserting ``38-1640,''; in line
20, by striking ``9'' and inserting ``7'';

                                                                                        And your committee on conference recommends the adoption of this report.

                                                                                    Tim Emert

                                                                                    Lana Oleen

                                                                                    Greta Goodwin
 
                                                                                    Conferees on part of Senate

                                                                                    Tim Carmody

                                                                                    Terry Prestsa

                                                                                    Jim D. Garner
 
Conferees on part of House

 On motion of Rep. Carmody, the conference committee report on HB 2627 was adopted.

 On roll call, the vote was: Yeas 80; Nays 39; Present but not voting: 0; Absent or not
voting: 5.

 Yeas: Adkins, Alldritt, Allen, Ballard, Ballou, Beggs, Benlon, Boston, Burroughs, Car-
mody, Cook, Correll, Cox, Dean, Dillon, Dreher, Edmonds, Empson, Faber, Findley, Fla-
harty, Flora, Flower, Garner, Gilbert, Gilmore, Glasscock, Grant, Haley, Henderson, Huff,
Humerickhouse, Hutchins, Johnston, Kirk, Klein, Krehbiel, Kuether, Lane, Larkin, M.
Long, Mason, Mayans, Mays, McCreary, McKinney, Minor, Morrison, Myers, Nichols, Os-
borne, E. Peterson, Phelps, Pottorff, Powers, Ray, Reardon, Reinhardt, Ruff, Sawyer, Shal-
lenburger, Sharp, Showalter, Shriver, Shultz, Sloan, Stone, Storm, Swenson, Tanner, Thi-
mesch, Toelkes, Tomlinson, Toplikar, Wagle, Weiland, Wells, Welshimer, Wempe, Wilk.

Nays: Aurand, Campbell, Compton, Crow, Dahl, Feuerborn, Franklin, Freeborn, Gregory,
Hayzlett, Henry, Holmes, Horst, Howell, Jennison, Johnson, Kejr, Phill Kline, Landwehr,
P. Long, McClure, McKechnie, Mollenkamp, Neufeld, O'Connor, Packer, Palmer, Pauls,
J. Peterson, Powell, Presta, Samuelson, Schwartz, Shore, Spangler, Vickrey, Vining, Weber,
Wilson.

 Present but not voting: None.

 Absent or not voting: Farmer, Geringer, Helgerson, Phil Kline, O'Neal.

INTRODUCTION OF ORIGINAL MOTIONS
 On motion of Rep. Jennison, the House acceded to the request of the Senate for a
conference on HB 2868.

Speaker pro tem Wagle thereupon appointed Reps. Freeborn, Johnson and McClure as
second conferees on the part of the House.

CONFERENCE COMMITTEE REPORT
 Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2684, submits the following report:

    The House accedes to all Senate amendments to the bill, and your committee on con-
ference further agrees to amend the bill, as printed as Amended by Senate on Final Action,
as follows:

    On page 10, in line 35, by striking all after the period; in line 36, by striking all before
``request'' and inserting ``A''; in line 42, by striking ``it''; in line 43, after ``be'' by inserting
``deemed approved unless'';

    On page 14, in line 1, before ``(a)'' by inserting ``On and after January 1, 1999,''; in line
10, by striking ``$10,000'' and inserting ``$15,000''; in line 14, by striking ``$1,000,000'' and
inserting ``$2,000,000''; by striking all in line 19; in line 20, before ``agricultural'' by inserting
``, other than those relating to land devoted to''; also, in line 20, after the first comma, by
inserting ``wherein the value of the property''; also, in line 20, by striking ``$1,000,000'' and
inserting ``$2,000,000''; in line 23, by striking ``Any'' and inserting ``In accordance with the
provisions of K.S.A. 1997 Supp. 74-2438, and amendments thereto, any'';

    On page 15, in line 27, before ``(a)'' by inserting ``On and after January 1, 1999,''; after
line 32, by inserting the following:

    ``Sec. 9. On and after January 1, 1999, K.S.A. 79-1448 is hereby amended to read as
follows: 79-1448. Any taxpayer may complain or appeal to the county appraiser from the
classification or appraisal of the taxpayer's property by giving notice to the county appraiser
within 30 days subsequent to the date of mailing of the valuation notice required by K.S.A.
79-1460, and amendments thereto, for real property, and on or before May 15 for personal
property. The county appraiser or the appraiser's designee shall arrange to hold an informal
meeting with the aggrieved taxpayer with reference to the property in question. At such
meeting it shall be the duty of the county appraiser or the county appraiser's designee to
initiate production of evidence to substantiate the valuation of such property. The county
appraiser may extend the time in which the taxpayer may informally appeal from the clas-
sification or appraisal of the taxpayer's property for just and adequate reasons. Except as
provided in K.S.A. 79-1404, and amendments thereto, no informal meeting regarding real
property shall be scheduled to take place after May 15, nor shall a final determination be
given by the appraiser after May 20. Any taxpayer who is aggrieved by the final determination
of the county appraiser may appeal to the hearing officer or panel appointed pursuant to
K.S.A. 79-1611, and amendments thereto, and such hearing officer, or panel, for just cause
shown and recorded, is authorized to change the classification or valuation of specific tracts
or individual items of real or personal property in the same manner provided for in K.S.A.
79-1606, and amendments thereto. In lieu of appealing to a hearing officer or panel ap-
pointed pursuant to K.S.A. 79-1611, and amendments thereto, any taxpayer aggrieved by
the final determination of the county appraiser, except with regard to land devoted to ag-
ricultural use, wherein the value of the property, is less than $2,000,000, as reflected on the
valuation notice, or the property constitutes single family residential property, may appeal
to the small claims division of the state board of tax appeals within the time period prescribed
by K.S.A. 79-1606, and amendments thereto. Any taxpayer who is aggrieved by the final
determination of a hearing officer or panel may appeal to the state board of tax appeals as
provided in K.S.A. 79-1609, and amendments thereto. An informal meeting with the county
appraiser or the appraiser's designee shall be a condition precedent to an appeal to the
county or district hearing panel.

    Sec. 11. On and after January 1, 1999, K.S.A. 79-1611 is hereby amended to read as
follows: 79-1611. The board of county commissioners of each county having fewer than
10,000 parcels of real property may appoint and the board of county commissioners of each
county having 10,000 parcels of real property or more shall appoint at least one hearing
officer or county hearing panel of not fewer than three individuals to hear and determine
appeals from the final determination of classification and appraised valuation of real or
personal property by the county appraiser. The board of county commissioners, with the
approval of the director of property valuation, may unite with the board of county commis-
sioners of one or more counties to form a district for the purpose of appointing at least one
hearing officer or district hearing panel of not fewer than three individuals. In any county
wherein a hearing officer or county or district hearing panel is not appointed pursuant to
this section any appeal from the final determination of the county appraiser shall be filed
directly with the state board of tax appeals as provided in K.S.A. 79-1609, and amendments
thereto.

    The board of county commissioners shall fix the salary to be paid the hearing officer or
each member of the county hearing panel. In the case of a district hearing officer or district
hearing panel, the salary to be paid shall be fixed by joint resolution by the boards of county
commissioners published in the official county newspaper of each county. The board of
county commissioners of each county is hereby authorized to levy a tax upon all taxable
tangible property in the county in an amount necessary to pay all costs incurred in complying
with this section and K.S.A. 79-1494.

    No person may serve as a hearing officer or on a county or district hearing panel who is
not qualified by virtue of experience and training in the field of property appraisal and
property tax administration, such qualifications to be determined by the director of property
valuation who shall prescribe guidelines governing the duties of the hearing officers or
county and district hearing panels. Each hearing officer and member of a county or district
hearing panel shall attend and complete a training program conducted by the director of
property valuation or the director's designee. Any person who has performed an appraisal
of any property the appraised valuation of which is appealed to a hearing officer or the
county or district hearing panel shall not hear such appeal and may not participate in any
deliberations on such appeal. The board of county commissioners, or individual members
thereof, may serve as a hearing officer or as members of the county or district hearing panel
provided they meet the foregoing requirements.

    Whenever the director of property valuation shall conclude that any person appointed as
a hearing officer or to a county or district hearing panel has failed or neglected to discharge
such person's duties as required by law and that the interest of the public will be promoted
by the removal of such person, the director of property valuation shall issue an order sus-
pending or terminating such person as a hearing officer or member of the hearing panel in
the same manner and subject to the same conditions provided in subsection (b) of K.S.A.
19-431, and amendments thereto.

    The provisions of this section shall apply to all taxable years commencing after December
31, 1992 1997.

    Sec. 3. On and after January 1, 1999, K.S.A. 79-1448 and 79-1611 are hereby re-
pealed.'';

    By renumbering existing sections accordingly;

    In the title, in line 15, by striking ``and''; in line 16, after ``251'' by inserting ``, 79-1448
and 79-1611'';

                                                                                        And your committee on conference recommends the adoption of this report.

                                                                                    Audrey Langworthy

                                                                                    David R. Corbin

                                                                                    Janis K. Lee
 
                                                                                    Conferees on part of Senate

                                                                                    Phill Kline

                                                                                    Tony Powell

                                                                                    Bruce Larkin
 
Conferees on part of House

 On motion of Rep. Powell, the conference committee report on HB 2684 was adopted.

 On roll call, the vote was: Yeas 117; Nays 2; Present but not voting: 0; Absent or not
voting: 5.

 Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Burroughs,
Campbell, Carmody, Compton, Cook, Correll, Cox, Crow, Dahl, Dean, Dillon, Dreher,
Edmonds, Empson, Faber, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Free-
born, Garner, Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett, Henderson,
Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, Johnson, John-
ston, Kejr, Kirk, Klein, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, M. Long,
P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie, McKinney, Minor, Mol-
lenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, Osborne, Palmer, Pauls, E. Pe-
terson, J. Peterson, Phelps, Pottorff, Powell, Powers, Ray, Reardon, Reinhardt, Ruff, Sa-
muelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Shultz, Sloan,
Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vick-
rey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson.

Nays: Packer, Presta.

 Present but not voting: None.

 Absent or not voting: Farmer, Geringer, Helgerson, Phil Kline, O'Neal.

MOTIONS TO CONCUR AND NONCONCUR
 On motion of Rep. Glasscock to concur in Senate amendments to S. Sub. for HB 2860,
Rep. McKinney offered a substitute motion to nonconcur and asked that a conference
committee be appointed. The substitute motion prevailed.

 Speaker pro tem Wagle thereupon appointed Reps. Glasscock, Carmody and Welshimer
as conferees on the part of the House.

REPORT OF STANDING COMMITTEE
 Your Committee on Calendar and Printing recommends on requests for resolutions
and certificates that

 Request No. 210, by Representative Samuelson, congratulating the Moundridge Wild-
cats on winning first in the 2A Girls' Basketball Tournament;

 Request No. 211, by Representative Sawyer, congratulating Wichita State University's
Men's Bowling Team for winning the 1998 National Championship; and the Women's Bowl-
ing Team for winning six national titles;

 Request No. 212, by Representatives Ballard, Findley and Sloan, congratulating the
University of Kansas Lady Jayhawks for being third in the Big 12 Conference, and appearing
in the Sweet 16 of the NCAA Tournament for the second time;

 Request No. 213, by Representative McClure, commending Chris Naegele on achieving
Eagle Scout;

 Request No. 214, by Representative Schwartz, congratulating Margaret Baird on her
90th birthday;

 Request No. 215, by Representative Schwartz, congratulating Elmer and Oletha Reith
on50 years of marriage;

 Request No. 216, by Representative Schwartz, congratulating Margaret and Elver Rich-
ter on 50 years of marriage;

 Request No. 217, by Representative McClure, commending Nate Bihlmaier on achiev-
ing Eagle Scout;

 Request No. 218, by Representative Thimesch, honoring Thomas Noonan, Jr. on achiev-
ing Eagle Scout;

 Request No. 219, by Representative Thimesch, congratulating Julius and Eileen Stuhl-
satz on 50 years of marriage;

 Request No. 220, by Representative Sloan, recognizing Todd Thompson for service as
an intern during the 1998 session;

 Request No. 221, by Representative Storm, recognizing Mark Thompson for service as
an intern during the 1998 session;

 Request No. 222, by Representative Gilmore, recognizing Amy Hoskins for service as
an intern during the 1998 session;

 Request No. 223, by Representative Stone, recognizing Justin Holstin for service as an
intern during the 1998 session;

 Request No. 224, by Representative J. Peterson, recognizing Brad Finkelder for service
as an intern during the 1998 session;

 Request No. 225, by Representative Franklin, recognizing Joan Sauser for service as an
intern during the 1998 session;

 Request No. 226, by Representative Henry, recognizing Suzanne Pickman for service
as an intern during the 1998 session;

 Request No. 227, by Representative Hutchins, recognizing David Gibbon for service as
an intern during the 1998 session;

 Request No. 228, by Representative McClure, recognizing Noreen Connolly for service
as an intern during the 1998 session;

 Request No. 229, by Representative Tanner, recognizing Blaine Finch for service as an
intern during the 1998 session;

 Request No. 230, by Representative Palmer, recognizing Corrie Kangas and Mark Law-
lor for service as interns during the 1998 session;

 Request No. 231, by Representative Jennison, recognizing Julie Strickland for service
as an intern during the 1998 session;

 Request No. 232, by Representative E. Peterson, recognizing Seth Eckelman for service
as an intern during the 1998 session;

 Request No. 233, by Representative Freeborn, recognizing Sarah Ellestadt for service
as an intern during the 1998 session;

 Request No. 234, by Representative Johnson, recognizing Blythe Ridenour for service
as an intern during the 1998 session;

 Request No. 235, by Representative Haley, recognizing Ameshia Tubbs for service as
an intern during the 1998 session;

 Request No. 236, by Representative Hayzlett, recognizing Cory Riedl for service as an
intern during the 1998 session;

 Request No. 237, by Representative Flower, recognizing Michael Wambold for service
as an intern during the 1998 session;

 Request No. 238, by Representative Kuether, recognizing Beth Hall for service as an
intern during the 1998 session;

 Request No. 239, by Representative Edmonds, recognizing Nick Gregory for service as
an intern during the 1998 session;

 Request No. 240, by Representative Shore, recognizing Deland Shore for service as an
intern during the 1998 session;

 Request No. 241, by Representative Farmer, recognizing Katie Sackman for service as
an intern during the 1998 session;

 Request No. 242, by Representative Gregory, recognizing Laura Weeks for service as
an intern during the 1998 session;

 Request No. 243, by Representative Findley, recognizing Andrea Walker for service as
an intern during the 1998 session;

 Request No. 244, by Representative Nichols, recognizing Rob MacDougall for service
as an intern during the 1998 session;

 Request No. 245, by Representative Crow, recognizing Ashley Jones for service as an
intern during the 1998 session;

 Request No. 246, by Representatives Kirk, Crow, Spangler and Wempe, recognizing
Kirk Galley for service as an intern during the 1998 session;

 Request No. 247, by Representative Morrison, recognizing Milt Theologou for service
as an intern during the 1998 session;

 Request No. 248, by Representative Garner, recognizing Phil Stevenson for service as
an intern during the 1998 session;

 Request No. 249, by Representative Feuerborn, recognizing Janna Dunbar for service
as an intern during the 1998 session;

 Request No. 250, by Representative Reardon, recognizing Allison Bernard for service
as an intern during the 1998 session;

 Request No. 251, by Representative P. Long, recognizing Natalie Reed for service as
an intern during the 1998 session;

 Request No. 252, by Representative Neufeld, recognizing Keith Bradshaw for service
as an intern during the 1998 session;

 Request No. 253, by Representative Lane, recognizing Kassandra Stephens for service
as an intern during the 1998 session;

 Request No. 254, by Representative Landwehr, recognizing Carleen Premus for service
as an intern during the 1998 session;

 Request No. 255, by Representative Carmody, recognizing Sarah Obermueller for serv-
ice as an intern during the 1998 session;

 Request No. 256, by Representative Pottorff, recognizing Megan Ruchow for service as
an intern during the 1998 session;

 Request No. 257, by Representative Glasscock, recognizing John Spieks for service as
an intern during the 1998 session;

 Request No. 258, by Representative Wagle, recognizing Anthony Springfield for service
as an intern during the 1998 session;

 Request No. 259, by Representative Phelps, recognizing Timothy Graham for service
as an intern during the 1998 session;

 Request No. 260, by Representative Phelps, recognizing Michael Dible for service as
anintern during the 1998 session;

 Request No. 261, by Representative Samuelson, recognizing Holly Davis for service as
an intern during the 1998 session;

 Request No. 262, by Representative Campbell, recognizing Shane Stremming for service
as an intern during the 1998 session;

 Request No. 263, by Representative Shultz, recognizing Shane Gentry for service as an
intern during the 1998 session;

 Request No. 264, by Representative Benlon, recognizing Mena Crawford for service as
an intern during the 1998 session;

 Request No. 265, by Representative P. Long, honoring Harold Fankhauser, C.R.
McClelland, Ed Wilson, George Sauder, Wally Erickson and Ted Brinkman for 50 years of
membership in James-Sill-Brown Post 124 of the American Legion;

 Request No. 266, by Representative Alldritt, congratulating Howard Osborne on the
establishment of Lake Osborne in Caldwell;

 Request No. 267, by Representative Powell, congratulating Mrs. Maxwell's first grade
class from Central Christian Academy for visiting the State Capitol and learning about state
government;

 Request No. 268, by Representative Powell, congratulating Major John Scorsone, USAF,
for his service to the United States Air Force and the State of Kansas;

 Request No. 269, by Representative Ballard, recognizing Kristin Addlesperger for serv-
ice as an intern during the 1998 session;

 Request No. 270, by Representative Ballard, recognizing Cathleen Hull for service as
an intern during the 1998 session;

 Request No. 271, by Representatives Shriver and Showalter, recognizing Ann Reardon
for service as an intern during the 1998 session;

 Request No. 272, by Representative Neufeld, congratulating Tom Smith, coach of Ci-
marron High School Girls' Basketball Team, named all-area coach of the year by Dodge
City Daily Globe; A girls coach of the year by the Hutchinson News; Kansas Basketball
Coach of the Year by the Kansas Basketball Coach's Association;

 Request No. 273, by Representative Flower, congratulating Ann Michele Scarlett, top-
ranked graduate of the Kansas University School of Law;

 Request No. 274, by Representative Ballard, congratulating Ethan Singleton Shaftel on
achieving Eagle Scout;

 Request No. 275, by Representative Ballard, congratulating David Gregory Gaus on
achieving Eagle Scout;

 Request No. 276, by Representative Benlon, congratulating Lauren Holmes for receiv-
ing the Presidential Scholar Award;

 Request No. 277, by Representative Benlon, commending Evelyn Vankemseke for many
years of endless dedication in helping those in need;

 Request No. 278, by Representative Benlon, congratulating Brian Pack on achieving
Eagle Scout;

 Request No. 279, by Representative Mayans, congratulating Peter Mario Goico on
achieving Eagle Scout;

 Request No. 280, by Representative Mayans, congratulating Philip Peter Schweiger on
achieving Eagle Scout;

 Request No. 281, by Representative Mayans, congratulating Brian Daniel Goico on
achieving Eagle Scout;

 Request No. 282, by Representative Ballard, congratulating Vernell and John Spearman
on 49 years of marriage;

 Request No. 283, by Representative Sawyer, recognizing Kimbra Kaywood for service
as an intern during the 1998 session;

 Request No. 284, by Representatives Flora and McKinney, recognizing John Fairbanks
for service as an intern during the 1998 session;

 Request No. 285, by Representative Allen, recognizing Anthony T. Bukaty for service
as an intern during the 1998 session;

 Request No. 286, by Representative Adkins, commending the Overland Park Conven-
tion and Visitor's Bureau in recognition of outstanding contributions to the success of the
1997 annual meeting of the Midwestern Legislative Conference;

 Request No. 287, by Representative Adkins, commending Dr. Ron LaHue for his dis-
tinguished public service as a member of the City of Leawood City Council;

 Request No. 288, by Representative Adkins, commending John Campbell for his distin-
guished public service as a member of the City of Leawood City Council;

 Request No. 289, by Representative Adkins, commending the Leawood Rotary Club for
outstanding contributions to the community and for ``service above self'';

 Request No. 290, by Representative Adkins, honoring Chief Steve Cox in recognition
of a distinguished career in law enforcement and for his outstanding service as Chief of
Police for the City of Leawood;

 Request No. 291, by Representative Adkins, commending YouthFriends for outstanding
efforts to improve the quality of life for youth throughout Greater Kansas City;

 Request No. 292, by Representative Adkins, commending Dr. Vern Barnet for outstand-
ing contributions to the success of the Overland Park Rotary Club Foundation's Youth
Leadership Institute;

 Request No. 293, by Representative Adkins, commending Korb Maxwell II in recog-
nition of outstanding service to the Kansas Legislature and for his commitment to public
service as a student leader at the University of Kansas;

 Request No. 294, by Representative Weber, congratulating Christopher Lunsford on
achieving Eagle Scout;

 Request No. 295, by Representative Weber, congratulating W.A. ``Al'' Wetmore, named
Senior Citizen of the Year 1997 by the Herington Tri-County Chamber of Commerce;

 Request No. 296, by Representative Weber, congratulating Brian ``Pete'' Schultz, named
Citizen of the Year 1997 by the Herington Tri-County Chamber of Commerce;

 Request No. 297, by Representative Weber, congratulating Chad Albin, named Young
Citizen of the Year 1997 by the Herington Tri-County Chamber of Commerce;

 Request No. 298, by Representative Weber, congratulating Rhonda Bryant, named Cit-
izen of the Year 1997 by the Council Grove Chamber of Commerce;

 Request No. 299, by Representative Weber, congratulating Linda Cosgrove, named
Citizen of the Year 1997 by the Council Grove Chamber of Commerce;

 Request No. 300, by Representative Spangler, congratulating Alois George Befort, Jr.,
and the former Mildred Elizabeth Tomecal on 50 years of marriage;

 Request No. 301, by Representatives Spangler, Sharp, Henderson, M. Long, Ha-
ley,Dillon, Burroughs and Reardon, recognizing Dr. Stacy Ollar for outstanding contribu-
tions to Wyandotte Developmental Disabilities Services and the State of Kansas;

 Request No. 302, by Representative Weber, congratulating Melba Rhudy, named Dis-
tinguished Citizen of the Year 1997 by the Americus Chamber of Commerce;

 Request No. 303, by Representative Holmes, recognizing Michaela Jacobs for service
as an intern during the 1998 session;

 Request No. 304, by Representative Henderson, congratulating Priscella Nichols,
Le'Cresha Jackson, Li La Griffin, Bentuan Cannady, Lewis Harrison and David Covington,
Jr., on graduation from high school;

 Request No. 305, by Representative Carmody, congratulating James Howard and Lilah
Hickok Gillett on 50 years of marriage;

 Request No. 306, by Representative Ballard, congratulating Peg Wittmer, voice of the
Lady Jayhawks for over 20 years; and Marian E. Washington, celebrating 25 years of coach-
ing;

 Request No. 307, by Representative Jennison, congratulating Pearl Ruby Bosley on her
100th birthday;

 Request No. 308, by Representative Presta, congratulating Lucas Proffitt on achieving
Eagle Scout;

 Request No. 309, by Representative Ruff, recognizing Sara Krehbiel for service as an
intern during the 1998 session;

 Request No. 310, by Representative Garner, congratulating the Coffeyville Community
College Lady Ravens Basketball Team, NJCAA Jayhawk Conference Region VI Women's
Basketball Champions; they also participated in the the National Tournament;

 Request No. 311, by Representative Shallenburger, congratulating Shane Scott Gibson
on achieving Eagle Scout;

 Request No. 312, by Representative Weber, congratulating Dale Wallace, named Am-
bassador of the Year 1997 by the Abilene Chamber of Commerce;

 Request No. 313, by Representative Weber, congratulating Margaret Little, named Am-
bassador of the Year 1997 by the Abilene Chamber of Commerce;

 Request No. 314, by Representative Weber, congratulating Paul Martin, named 1997
Distinguished Citizen by the Abilene Chamber of Commerce;

 Request No. 315, by Representative Weber, congratulating Dave Bergmeier, named
Quiet Hero of the Year 1997 by the Abilene Chamber of Commerce;

 Request No. 316, by Representative Weber, congratulating Pat Aker, named Volunteer
of the Year 1997 by the Abilene Chamber of Commerce;

 Request No. 317, by Representative Shallenburger, commending John Potter for service
to the State of Kansas in the office of the Speaker of the House of Representatives;

 Request No. 318, by Representatives Ruff and Crow, honoring Saint Mary College in
Leavenworth on its 75th anniversary;

be approved and the Chief Clerk of the House be directed to order the printing of said
certificates and order drafting of said resolutions.

 On motion of Rep. Jennison, the committee report was adopted.

 The House stood in recess until 9:15 p.m.





______
Night Session
 The House met pursuant to recess with Speaker Shallenburger in the chair.

MESSAGES FROM THE SENATE
 The Senate accedes to the request of the House for a conference on S. Sub. for HB
2860 and has appointed Senators Hardenburger, Becker and Gooch as conferees on the
part of the Senate.

 Also, announcing passage of HB 2312, as amended.

 The Senate adopts conference committee report on HB 2584.

INTRODUCTION OF ORIGINAL MOTIONS
 On motion of Rep. Jennison, pursuant to subsection (k) of Joint Rule 4 of the Joint Rules
of the Senate and House of Representatives, the rules were suspended for the purpose of
considering HB 2312, 2584.

CONFERENCE COMMITTEE REPORT
 Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2584, submits the following report:

    The House accedes to all Senate amendments to the bill, and your committee on con-
ference further agrees to amend the bill, as printed with Senate Committee of the Whole
amendments, as follows:

    On page 12, by striking all in lines 9 through 43;

    By striking all on pages 13 and 14;

    On page 15, by striking all in lines 1 through 42 and inserting the following:

    ``Sec. 5. K.S.A. 79-2804g is hereby amended to read as follows: 79-2804g. (a) Whenever
any tract, lot or piece of real estate is offered for sale at public auction pursuant to K.S.A.
79-2804, and amendments thereto, such tract, lot or piece of real estate shall not be sold,
either directly or indirectly, to:

    (1) Any person having a statutory right to redeem such real estate prior to such sale,
pursuant to the provisions of K.S.A. 79-2803, and amendments thereto;

    (2) any parent, grandparent, child, grandchild, spouse, sibling, trustee or trust benefi-
ciary who held an interest in a tract as owner or holder of the record title or who held an
interest at any time when any tax constituting part of the county's judgment became due;
or

    (3) with respect to a title holding corporation, any current or former stockholder, current
officer or director, or any person having a relationship enumerated in paragraph (3) (2) to
such stockholder, officer or director.

    (b) If any such real estate is acquired by a county pursuant to K.S.A. 79-2804, and
amendments thereto, and, at the end of six months from and after confirmation of such sale
to the county, such real estate is advertised for sale at public auction, as provided in K.S.A.
79-2804f, and amendments thereto, such real estate shall not be sold, either prior to or at
such auction, to any person having a statutory right to redeem such real estate, under the
provisions of K.S.A. 79-2803, and amendments thereto, for an amount less than the original
judgment lien and interest thereon, plus the costs, charges and expenses of the proceedings
and sale, as set forth in the execution and order of sale issued pursuant to K.S.A. 79-2804,
and amendments thereto.

    (c) If any tract, lot or piece of real estate purchased at public auction pursuant to K.S.A.
79-2804, and amendments thereto, is transferred, sold, given or otherwise conveyed to any
person who had a statutory right to redeem such real estate prior to such sale pursuant to
K.S.A. 79-2803, and amendments thereto, within 10 years of the date of the public auction,
such person shall be liable for an amount equal to the original judgment lien and interest
thereon from the date of the public auction.

    (d) The provisions of this section shall apply to the sale or conveyance of any real estate
by a county land bank established pursuant to K.S.A. 1997 Supp. 19-26,104.

    Sec. 6. K.S.A. 79-3234 is hereby amended to read as follows: 79-3234. (a) All reports
and returns required by this act shall be preserved for three years and thereafter until the
director orders them to be destroyed.

    (b) Except in accordance with proper judicial order, or as provided in subsection (c) or
in K.S.A. 17-7511, subsection (g) of K.S.A. 46-1106, K.S.A. 46-1114, or K.S.A. 79-32,153a,
and amendments thereto, it shall be unlawful for the director, any deputy, agent, clerk or
other officer, employee or former employee of the department of revenue or any other state
officer or employee or former state officer or employee to divulge, or to make known in
any way, the amount of income or any particulars set forth or disclosed in any report, return,
federal return or federal return information required under this act; and it shall be unlawful
for the director, any deputy, agent, clerk or other officer or employee engaged in the ad-
ministration of this act to engage in the business or profession of tax accounting or to accept
employment, with or without consideration, from any person, firm or corporation for the
purpose, directly or indirectly, of preparing tax returns or reports required by the laws of
the state of Kansas, by any other state or by the United States government, or to accept any
employment for the purpose of advising, preparing material or data, or the auditing of books
or records to be used in an effort to defeat or cancel any tax or part thereof that has been
assessed by the state of Kansas, any other state or by the United States government.

    (c) Nothing in this section shall be construed to prohibit the publication of statistics, so
classified as to prevent the identification of particular reports or returns and the items
thereof, or the inspection of returns by the attorney general or other legal representatives
of the state. Nothing in this section shall prohibit the post auditor from access to all income
tax reports or returns in accordance with and subject to the provisions of subsection (g) of
K.S.A. 46-1106 or K.S.A. 46-1114, and amendments thereto. Nothing in this section shall
be construed to prohibit the disclosure of taxpayer information from income tax returns to
persons or entities contracting with the secretary of revenue where the secretary has deter-
mined disclosure of such information is essential for completion of the contract and has
taken appropriate steps to preserve confidentiality. Nothing in this section shall be construed
to prohibit the disclosure of job creation and investment information derived from tax sched-
ules required to be filed under the Kansas income tax act to the secretary of commerce.
Nothing in this section shall be construed to prohibit the disclosure of the taxpayer's name,
last known address and residency status to the department of wildlife and parks to be used
solely in its license fraud investigations. Nothing in this section shall prohibit the disclosure
of the name, residence address, employer or Kansas adjusted gross income of a taxpayer who
may have a duty of support in a title IV-D case to the secretary of the Kansas department
of social and rehabilitation services for use solely in administrative or judicial proceedings
to establish, modify or enforce such support obligation in a title IV-D case. In addition to
any other limits on use, such use shall be allowed only where subject to a protective order
which prohibits disclosure outside of the title IV-D proceeding. As used in this section, ``title
IV-D case'' means a case being administered pursuant to part D of title IV of the federal
social security act (42 U.S.C. §& 651 et seq.) and amendments thereto. Any person receiving
any information under the provisions of this subsection shall be subject to the confidentiality
provisions of subsection (b) and to the penalty provisions of subsection (d).

    (d) Any violation of subsection (b) or (c) is a class B nonperson misdemeanor and, if
the offender is an officer or employee of the state, such officer or employee shall be dis-
missed from office.

    (e) Notwithstanding the provisions of this section, the secretary of revenue may permit
the commissioner of internal revenue of the United States, or the proper official of any state
imposing an income tax, or the authorized representative of either, to inspect the income
tax returns made under this act and the secretary of revenue may make available or furnish
to the taxing officials of any other state or the commissioner of internal revenue of the
United States or other taxing officials of the federal government, or their authorized rep-
resentatives, information contained in income tax reports or returns or any audit thereof or
the report of any investigation made with respect thereto, filed pursuant to the income tax
laws, as the secretary may consider proper, but such information shall not be used for any
other purpose than that of the administration of tax laws of such state, the state of Kansas
or of the United States.

    (f) Notwithstanding the provisions of this section, the secretary of revenue may:

    (1) Communicate to the executive director of the Kansas lottery information as to
whether a person, partnership or corporation is current in the filing of all applicable tax
returns and in the payment of all taxes, interest and penalties to the state of Kansas, excluding
items under formal appeal, for the purpose of determining whether such person, partnership
or corporation is eligible to be selected as a lottery retailer;

    (2) communicate to the executive director of the Kansas racing commission as to
whether a person, partnership or corporation has failed to meet any tax obligation to the
state of Kansas for the purpose of determining whether such person, partnership or cor-
poration is eligible for a facility owner license or facility manager license pursuant to the
Kansas parimutuel racing act; and

    (3) provide such information to the president of Kansas, Inc. as required by K.S.A. 1997
Supp. 74-8017, and amendments thereto. The president and any employees or former em-
ployees of Kansas, Inc. receiving any such information shall be subject to the confidentiality
provisions of subsection (b) and to the penalty provisions of subsection (d).

    (g) Nothing in this section shall be construed to allow disclosure of the amount of income
or any particulars set forth or disclosed in any report, return, federal return or federal return
information, where such disclosure is prohibited by the federal internal revenue code as in
effect on September 1, 1996, and amendments thereto, related federal internal revenue rules
or regulations, or other federal law.

    Sec. 7. K.S.A. 79-3606, as amended by section 31 of 1998 Senate Bill No. 493, is hereby
amended to read as follows: 79-3606. The following shall be exempt from the tax imposed
by this act:

    (a) All sales of motor-vehicle fuel or other articles upon which a sales or excise tax has
been paid, not subject to refund, under the laws of this state except cigarettes as defined
by K.S.A. 79-3301 and amendments thereto, cereal malt beverages and malt products as
defined by K.S.A. 79-3817 and amendments thereto, including wort, liquid malt, malt syrup
and malt extract, which is not subject to taxation under the provisions of K.S.A. 79-41a02
and amendments thereto, motor vehicles taxed pursuant to K.S.A. 79-5117, and amend-
ments thereto, tires taxed pursuant to K.S.A. 1997 Supp. 65-3424d, and amendments
thereto, and drycleaning and laundry services taxed pursuant to K.S.A. 1997 Supp. 65-
34,150, and amendments thereto;

    (b) all sales of tangible personal property or service, including the renting and leasing
of tangible personal property, purchased directly by the state of Kansas, a political subdi-
vision thereof, other than a school or educational institution, or purchased by a public or
private nonprofit hospital or public hospital authority or nonprofit blood, tissue or organ
bank and used exclusively for state, political subdivision, hospital or public hospital authority
or nonprofit blood, tissue or organ bank purposes, except when: (1) Such state, hospital or
public hospital authority is engaged or proposes to engage in any business specifically taxable
under the provisions of this act and such items of tangible personal property or service are
used or proposed to be used in such business, or (2) such political subdivision is engaged
or proposes to engage in the business of furnishing gas, water, electricity or heat to others
and such items of personal property or service are used or proposed to be used in such
business;

    (c) all sales of tangible personal property or services, including the renting and leasing
of tangible personal property, purchased directly by a public or private elementary or sec-
ondary school or public or private nonprofit educational institution and used primarily by
such school or institution for nonsectarian programs and activities provided or sponsored
by such school or institution or in the erection, repair or enlargement of buildings to be
used for such purposes. The exemption herein provided shall not apply to erection, con-
struction, repair, enlargement or equipment of buildings used primarily for human habita-
tion;

    (d) all sales of tangible personal property or services purchased by a contractor for the
purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging, fur-
nishing or remodeling facilities for any public or private nonprofit hospital or public hospital
authority, public or private elementary or secondary school or a public or private nonprofit
educational institution, which would be exempt from taxation under the provisions of this
act if purchased directly by such hospital or public hospital authority, school or educational
institution; and all sales of tangible personal property or services purchased by a contractor
for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging,
furnishing or remodeling facilities for any political subdivision of the state, the total cost of
which is paid from funds of such political subdivision and which would be exempt from
taxation under the provisions of this act if purchased directly by such political subdivision.
Nothing in this subsection or in the provisions of K.S.A. 12-3418 and amendments thereto,
shall be deemed to exempt the purchase of any construction machinery, equipment or tools
used in the constructing, equipping, reconstructing, maintaining, repairing, enlarging, fur-
nishing or remodeling facilities for any political subdivision of the state. As used in this
subsection, K.S.A. 12-3418 and 79-3640, and amendments thereto, ``funds of a political
subdivision'' shall mean general tax revenues, the proceeds of any bonds and gifts or grants-
in-aid. Gifts shall not mean funds used for the purpose of constructing, equipping, recon-
structing, repairing, enlarging, furnishing or remodeling facilities which are to be leased to
the donor. When any political subdivision of the state, public or private nonprofit hospital
or public hospital authority, public or private elementary or secondary school or public or
private nonprofit educational institution shall contract for the purpose of constructing,
equipping, reconstructing, maintaining, repairing, enlarging, furnishing or remodeling fa-
cilities, it shall obtain from the state and furnish to the contractor an exemption certificate
for the project involved, and the contractor may purchase materials for incorporation in
such project. The contractor shall furnish the number of such certificate to all suppliers
from whom such purchases are made, and such suppliers shall execute invoices covering
the same bearing the number of such certificate. Upon completion of the project the con-
tractor shall furnish to the political subdivision, hospital or public hospital authority, school
or educational institution concerned a sworn statement, on a form to be provided by the
director of taxation, that all purchases so made were entitled to exemption under this sub-
section. As an alternative to the foregoing procedure, any such contracting entity may apply
to the secretary of revenue for agent status for the sole purpose of issuing and furnishing
project exemption certificates to contractors pursuant to rules and regulations adopted by
the secretary establishing conditions and standards for the granting and maintaining of such
status. All invoices shall be held by the contractor for a period of five years and shall be
subject to audit by the director of taxation. If any materials purchased under such a certif-
icate are found not to have been incorporated in the building or other project or not to have
been returned for credit or the sales or compensating tax otherwise imposed upon such
materials which will not be so incorporated in the building or other project reported and
paid by such contractor to the director of taxation not later than the 20th day of the month
following the close of the month in which it shall be determined that such materials will not
be used for the purpose for which such certificate was issued, the political subdivision,
hospital or public hospital authority, school or educational institution concerned shall be
liable for tax on all materials purchased for the project, and upon payment thereof it may
recover the same from the contractor together with reasonable attorney fees. Any contractor
or any agent, employee or subcontractor thereof, who shall use or otherwise dispose of any
materials purchased under such a certificate for any purpose other than that for which such
a certificate is issued without the payment of the sales or compensating tax otherwise im-
posed upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor,
shall be subject to the penalties provided for in subsection (g) of K.S.A. 79-3615, and amend-
ments thereto;

    (e) all sales of tangible personal property or services purchased by a contractor for the
erection, repair or enlargement of buildings or other projects for the government of the
United States, its agencies or instrumentalities, which would be exempt from taxation if
purchased directly by the government of the United States, its agencies or instrumentalities.
When the government of the United States, its agencies or instrumentalities shall contract
for the erection, repair, or enlargement of any building or other project, it shall obtain from
the state and furnish to the contractor an exemption certificate for the project involved, and
the contractor may purchase materials for incorporation in such project. The contractor
shall furnish the number of such certificates to all suppliers from whom such purchases are
made, and such suppliers shall execute invoices covering the same bearing the number of
such certificate. Upon completion of the project the contractor shall furnish to the govern-
ment of the United States, its agencies or instrumentalities concerned a sworn statement,
on a form to be provided by the director of taxation, that all purchases so made were entitled
to exemption under this subsection. As an alternative to the foregoing procedure, any such
contracting entity may apply to the secretary of revenue for agent status for the sole purpose
of issuing and furnishing project exemption certificates to contractors pursuant to rules and
regulations adopted by the secretary establishing conditions and standards for the granting
and maintaining of such status. All invoices shall be held by the contractor for a period of
five years and shall be subject to audit by the director of taxation. Any contractor or any
agent, employee or subcontractor thereof, who shall use or otherwise dispose of any ma-
terials purchased under such a certificate for any purpose other than that for which such a
certificate is issued without the payment of the sales or compensating tax otherwise imposed
upon such materials, shall be guilty of a misdemeanor and, upon conviction therefor, shall
be subject to the penalties provided for in subsection (g) of K.S.A. 79-3615 and amendments
thereto;

    (f) tangible personal property purchased by a railroad or public utility for consumption
or movement directly and immediately in interstate commerce;

    (g) sales of aircraft including remanufactured and modified aircraft, sales of aircraft
repair, modification and replacement parts and sales of services employed in the remanu-
facture, modification and repair of aircraft sold to persons using directly or through an
authorized agent such aircraft and aircraft repair, modification and replacement parts as
certified or licensed carriers of persons or property in interstate or foreign commerce under
authority of the laws of the United States or any foreign government or sold to any foreign
government or agency or instrumentality of such foreign government and all sales of aircraft,
aircraft parts, replacement parts and services employed in the remanufacture, modification
and repair of aircraft for use outside of the United States;

    (h) all rentals of nonsectarian textbooks by public or private elementary or secondary
schools;

    (i) the lease or rental of all films, records, tapes, or any type of sound or picture tran-
scriptions used by motion picture exhibitors;

    (j) meals served without charge or food used in the preparation of such meals to em-
ployees of any restaurant, eating house, dining car, hotel, drugstore or other place where
meals or drinks are regularly sold to the public if such employees' duties are related to the
furnishing or sale of such meals or drinks;

    (k) any motor vehicle, semitrailer or pole trailer, as such terms are defined by K.S.A.
8-126 and amendments thereto, or aircraft sold and delivered in this state to a bona fide
resident of another state, which motor vehicle, semitrailer, pole trailer or aircraft is not to
be registered or based in this state and which vehicle, semitrailer, pole trailer or aircraft will
not remain in this state more than 10 days;

    (l) all isolated or occasional sales of tangible personal property, services, substances or
things, except isolated or occasional sale of motor vehicles specifically taxed under the pro-
visions of subsection (o) of K.S.A. 79-3603 and amendments thereto;

    (m) all sales of tangible personal property which become an ingredient or component
part of tangible personal property or services produced, manufactured or compounded for
ultimate sale at retail within or without the state of Kansas; and any such producer, manu-
facturer or compounder may obtain from the director of taxation and furnish to the supplier
an exemption certificate number for tangible personal property for use as an ingredient or
component part of the property or services produced, manufactured or compounded;

    (n) all sales of tangible personal property which is consumed in the production, man-
ufacture, processing, mining, drilling, refining or compounding of tangible personal prop-
erty, the treating of by-products or wastes derived from any such production process, the
providing of services or the irrigation of crops for ultimate sale at retail within or without
the state of Kansas; and any purchaser of such property may obtain from the director of
taxation and furnish to the supplier an exemption certificate number for tangible personal
property for consumption in such production, manufacture, processing, mining, drilling,
refining, compounding, treating, irrigation and in providing such services;

    (o) all sales of animals, fowl and aquatic plants and animals, the primary purpose of
which is use in agriculture or aquaculture, as defined in K.S.A. 47-1901, and amendments
thereto, the production of food for human consumption, the production of animal, dairy,
poultry or aquatic plant and animal products, fiber or fur, or the production of offspring for
use for any such purpose or purposes;

    (p) all sales of drugs, as defined by K.S.A. 65-1626 and amendments thereto, dispensed
pursuant to a prescription order, as defined by K.S.A. 65-1626 and amendments thereto,
by a licensed practitioner;

    (q) all sales of insulin dispensed by a person licensed by the state board of pharmacy to
a person for treatment of diabetes at the direction of a person licensed to practice medicine
by the board of healing arts;

    (r) all sales of prosthetic and orthopedic appliances prescribed in writing by a person
licensed to practice the healing arts, dentistry or optometry. For the purposes of this sub-
section, the term prosthetic and orthopedic appliances means any apparatus, instrument,
device, or equipment used to replace or substitute for any missing part of the body; used
to alleviate the malfunction of any part of the body; or used to assist any disabled person in
leading a normal life by facilitating such person's mobility; such term shall include acces-
sories attached or to be attached to motor vehicles, but such term shall not include motor
vehicles or personal property which when installed becomes a fixture to real property;

    (s) all sales of tangible personal property or services purchased directly by a groundwater
management district organized or operating under the authority of K.S.A. 82a-1020 et seq.
and amendments thereto, which property or services are used in the operation or mainte-
nance of the district;

    (t) all sales of farm machinery and equipment or aquaculture machinery and equipment,
repair and replacement parts therefor and services performed in the repair and maintenance
of such machinery and equipment. For the purposes of this subsection the term ``farm
machinery and equipment or aquaculture machinery and equipment'' shall include machin-
ery and equipment used in the operation of Christmas tree farming but shall not include
any passenger vehicle, truck, truck tractor, trailer, semitrailer or pole trailer, other than a
farm trailer, as such terms are defined by K.S.A. 8-126 and amendments thereto. Each
purchaser of farm machinery and equipment or aquaculture machinery and equipment
exempted herein must certify in writing on the copy of the invoice or sales ticket to be
retained by the seller that the farm machinery and equipment or aquaculture machinery
and equipment purchased will be used only in farming, ranching or aquaculture production.
Farming or ranching shall include the operation of a feedlot and farm and ranch work for
hire and the operation of a nursery;

    (u) all leases or rentals of tangible personal property used as a dwelling if such tangible
personal property is leased or rented for a period of more than 28 consecutive days;

    (v) all sales of food products to any contractor for use in preparing meals for delivery
to homebound elderly persons over 60 years of age and to homebound disabled persons or
to be served at a group-sitting at a location outside of the home to otherwise homebound
elderly persons over 60 years of age and to otherwise homebound disabled persons, as all
or part of any food service project funded in whole or in part by government or as part of
a private nonprofit food service project available to all such elderly or disabled persons
residing within an area of service designated by the private nonprofit organization, and all
sales of food products for use in preparing meals for consumption by indigent or homeless
individuals whether or not such meals are consumed at a place designated for such purpose;

    (w) all sales of natural gas, electricity, heat and water delivered through mains, lines or
pipes: (1) To residential premises for noncommercial use by the occupant of such premises;
(2) for agricultural use and also, for such use, all sales of propane gas; (3) for use in the
severing of oil; and (4) to any property which is exempt from property taxation pursuant to
K.S.A. 79-201b Second through Sixth. As used in this paragraph, ``severing'' shall have the
meaning ascribed thereto by subsection (k) of K.S.A. 79-4216, and amendments thereto;

    (x) all sales of propane gas, LP-gas, coal, wood and other fuel sources for the production
of heat or lighting for noncommercial use of an occupant of residential premises;

    (y) all sales of materials and services used in the repairing, servicing, altering, maintain-
ing, manufacturing, remanufacturing, or modification of railroad rolling stock for use in
interstate or foreign commerce under authority of the laws of the United States;

    (z) all sales of tangible personal property and services purchased directly by a port
authority or by a contractor therefor as provided by the provisions of K.S.A. 12-3418 and
amendments thereto;

    (aa) all sales of materials and services applied to equipment which is transported into
the state from without the state for repair, service, alteration, maintenance, remanufacture
or modification and which is subsequently transported outside the state for use in the trans-
mission of liquids or natural gas by means of pipeline in interstate or foreign commerce
under authority of the laws of the United States;

    (bb) all sales of used mobile homes or manufactured homes. As used in this subsection:
(1) ``Mobile homes'' and ``manufactured homes'' shall have the meanings ascribed thereto
by K.S.A. 58-4202 and amendments thereto; and (2) ``sales of used mobile homes or man-
ufactured homes'' means sales other than the original retail sale thereof;

    (cc) all sales of tangible personal property or services purchased for the purpose of and
in conjunction with constructing, reconstructing, enlarging or remodeling a business or retail
business which meets the requirements established in K.S.A. 74-50,115 and amendments
thereto, and the sale and installation of machinery and equipment purchased for installation
at any such business or retail business. When a person shall contract for the construction,
reconstruction, enlargement or remodeling of any such business or retail business, such
person shall obtain from the state and furnish to the contractor an exemption certificate for
the project involved, and the contractor may purchase materials, machinery and equipment
for incorporation in such project. The contractor shall furnish the number of such certificates
to all suppliers from whom such purchases are made, and such suppliers shall execute
invoices covering the same bearing the number of such certificate. Upon completion of the
project the contractor shall furnish to the owner of the business or retail business a sworn
statement, on a form to be provided by the director of taxation, that all purchases so made
were entitled to exemption under this subsection. All invoices shall be held by the contractor
for a period of five years and shall be subject to audit by the director of taxation. Any
contractor or any agent, employee or subcontractor thereof, who shall use or otherwise
dispose of any materials, machinery or equipment purchased under such a certificate for
any purpose other than that for which such a certificate is issued without the payment of
the sales or compensating tax otherwise imposed thereon, shall be guilty of a misdemeanor
and, upon conviction therefor, shall be subject to the penalties provided for in subsection
(g) of K.S.A. 79-3615 and amendments thereto. As used in this subsection, ``business'' and
``retail business'' have the meanings respectively ascribed thereto by K.S.A. 74-50,114 and
amendments thereto;

    (dd) all sales of tangible personal property purchased with food stamps issued by the
United States department of agriculture;

    (ee) all sales of lottery tickets and shares made as part of a lottery operated by the state
of Kansas;

    (ff) on and after July 1, 1988, all sales of new mobile homes or manufactured homes to
the extent of 40% of the gross receipts, determined without regard to any trade-in allowance,
received from such sale. As used in this subsection, ``mobile homes'' and ``manufactured
homes'' shall have the meanings ascribed thereto by K.S.A. 58-4202 and amendments
thereto;

    (gg) all sales of tangible personal property purchased in accordance with vouchers issued
pursuant to the federal special supplemental food program for women, infants and children;

    (hh) all sales of medical supplies and equipment purchased directly by a nonprofit skilled
nursing home or nonprofit intermediate nursing care home, as defined by K.S.A. 39-923,
and amendments thereto, for the purpose of providing medical services to residents thereof.
This exemption shall not apply to tangible personal property customarily used for human
habitation purposes;

    (ii) all sales of tangible personal property purchased directly by a nonprofit organization
for nonsectarian comprehensive multidiscipline youth development programs and activities
provided or sponsored by such organization, and all sales of tangible personal property by
or on behalf of any such organization. This exemption shall not apply to tangible personal
property customarily used for human habitation purposes;

    (jj) all sales of tangible personal property or services, including the renting and leasing
of tangible personal property, purchased directly on behalf of a community-based mental
retardation facility or mental health center organized pursuant to K.S.A. 19-4001 et seq.,
and amendments thereto, and licensed in accordance with the provisions of K.S.A. 75-3307b
and amendments thereto. This exemption shall not apply to tangible personal property
customarily used for human habitation purposes;

    (kk) on and after January 1, 1989, all sales of machinery and equipment used directly
and primarily for the purposes of manufacturing, assembling, processing, finishing, storing,
warehousing or distributing articles of tangible personal property in this state intended for
resale by a manufacturing or processing plant or facility or a storage, warehousing or dis-
tribution facility, and all sales of repair and replacement parts and accessories purchased
for such machinery and equipment:

    (1) For purposes of this subsection, machinery and equipment shall be deemed to be
used directly and primarily in the manufacture, assemblage, processing, finishing, storing,
warehousing or distributing of tangible personal property where such machinery and equip-
ment is used during a manufacturing, assembling, processing or finishing, storing, ware-
housing or distributing operation:

    (A) To effect a direct and immediate physical change upon the tangible personal property;

    (B) to guide or measure a direct and immediate physical change upon such property
where such function is an integral and essential part of tuning, verifying or aligning the
component parts of such property;

    (C) to test or measure such property where such function is an integral part of the
production flow or function;

    (D) to transport, convey or handle such property during the manufacturing, processing,
storing, warehousing or distribution operation at the plant or facility; or

    (E) to place such property in the container, package or wrapping in which such property
is normally sold or transported.

    (2) Notwithstanding the manner in which machinery and equipment is treated by a
taxpayer for federal income tax purposes, For purposes of this subsection ``machinery and
equipment used directly and primarily'' shall include, but not be limited to:

    (A) Mechanical machines or major components thereof contributing to a manufacturing,
assembling or finishing process;

    (B) molds and dies that determine the physical characteristics of the finished product
or its packaging material;

    (C) testing equipment to determine the quality of the finished product;

    (D) computers and related peripheral equipment that directly control or measure the
manufacturing process or which are utilized for engineering of the finished product; and

    (E) computers and related peripheral equipment utilized for research and development
and product design.

    (3) ``Machinery and equipment used directly and primarily'' shall not include:

    (A) Hand tools;

    (B) machinery, equipment and tools used in maintaining and repairing any type of ma-
chinery and equipment;

    (C) transportation equipment not used in the manufacturing, assembling, processing,
furnishing, storing, warehousing or distributing process at the plant or facility;

    (D) office machines and equipment including computers and related peripheral equip-
ment not directly and primarily used in controlling or measuring the manufacturing process;

    (E) furniture and buildings; and

    (F) machinery and equipment used in administrative, accounting, sales or other such
activities of the business;

    (4) for purposes of this subsection, ``repair and replacement parts and accessories'' means
all parts and accessories for exempt machinery and equipment, including but not limited to
dies, jigs, molds, and patterns which are attached to exempt machinery or which are oth-
erwise used in production, short-lived replaceable parts that can be readily detached from
exempt machinery or equipment, such as belts, drill bits, grinding wheels, cutting bars and
saws, and other replacement parts for production equipment, including refractory brick and
other refractory items for kiln equipment used in production operations;

    (ll) all sales of educational materials purchased for distribution to the public at no charge
by a nonprofit corporation organized for the purpose of encouraging, fostering and con-
ducting programs for the improvement of public health;

    (mm) all sales of seeds and tree seedlings; fertilizers, insecticides, herbicides, germi-
cides, pesticides and fungicides; and services, purchased and used for the purpose of pro-
ducing plants in order to prevent soil erosion on land devoted to agricultural use;

    (nn) except as otherwise provided in this act, all sales of services rendered by an ad-
vertising agency or licensed broadcast station or any member, agent or employee thereof;

    (oo) all sales of tangible personal property purchased by a community action group or
agency for the exclusive purpose of repairing or weatherizing housing occupied by low
income individuals;

    (pp) all sales of drill bits and explosives actually utilized in the exploration and produc-
tion of oil or gas;

    (qq) all sales of tangible personal property and services purchased by a nonprofit mu-
seum or historical society or any combination thereof, including a nonprofit organization
which is organized for the purpose of stimulating public interest in the exploration of space
by providing educational information, exhibits and experiences, which is exempt from fed-
eral income taxation pursuant to section 501(c)(3) of the federal internal revenue code of
1986;

    (rr) all sales of tangible personal property which will admit the purchaser thereof to any
annual event sponsored by a nonprofit organization which is exempt from federal income
taxation pursuant to section 501(c)(3) of the federal internal revenue code of 1986;

    (ss) all sales of tangible personal property and services purchased by a public broad-
casting station licensed by the federal communications commission as a noncommercial
educational television or radio station;

    (tt) all sales of tangible personal property and services purchased by or on behalf of a
not-for-profit corporation which is exempt from federal income taxation pursuant to section
501(c)(3) of the federal internal revenue code of 1986, for the sole purpose of constructing
a Kansas Korean War memorial;

    (uu) all sales of tangible personal property and services purchased by or on behalf of
any rural volunteer fire-fighting organization for use exclusively in the performance of its
duties and functions;

    (vv) all sales of tangible personal property purchased by any of the following organiza-
tions which are exempt from federal income taxation pursuant to section 501 (c)(3) of the
federal internal revenue code of 1986, for the following purposes, and all sales of any such
property by or on behalf of any such organization for any such purpose:

    (1) The American Heart Association, Kansas Affiliate, Inc. for the purposes of providing
education, training, certification in emergency cardiac care, research and other related serv-
ices to reduce disability and death from cardiovascular diseases and stroke;

    (2) the Kansas Alliance for the Mentally Ill, Inc. for the purpose of advocacy for persons
with mental illness and to education, research and support for their families;

    (3) the Kansas Mental Illness Awareness Council for the purposes of advocacy for per-
sons who are mentally ill and to education, research and support for them and their families;

    (4) the American Diabetes Association Kansas Affiliate, Inc. for the purpose of elimi-
nating diabetes through medical research, public education focusing on disease prevention
and education, patient education including information on coping with diabetes, and pro-
fessional education and training;

    (5) the American Lung Association of Kansas, Inc. for the purpose of eliminating all
lung diseases through medical research, public education including information on coping
with lung diseases, professional education and training related to lung disease and other
related services to reduce the incidence of disability and death due to lung disease;

    (6) the Kansas chapters of the Alzheimer's Disease and Related Disorders Association,
Inc. for the purpose of providing assistance and support to persons in Kansas with Alzhei-
mer's disease, and their families and caregivers; and

    (ww) all sales of tangible personal property purchased by the Habitat for Humanity for
the exclusive use of being incorporated within a housing project constructed by such organ-
ization.

    (xx) all sales of tangible personal property and services purchased by a nonprofit zoo
which is exempt from federal income taxation pursuant to section 501 (c)(3) of the federal
internal revenue code of 1986, or on behalf of such zoo by an entity itself exempt from
federal income taxation pursuant to section 50 (c)(3) of the federal internal revenue code
of 1986 contracted with to operate such zoo and all sales of tangible personal property or
services purchased by a contractor for the purpose of constructing, equipping, reconstruct-
ing, maintaining, repairing, enlarging, furnishing or remodeling facilities for any nonprofit
zoo which would be exempt from taxation under the provisions of this section if purchased
directly by such nonprofit zoo or the entity operating such zoo. Nothing in this subsection
shall be deemed to exempt the purchase of any construction machinery, equipment or tools
used in the constructing, equipping, reconstructing, maintaining, repairing, enlarging, fur-
nishing or remodeling facilities for any nonprofit zoo. When any nonprofit zoo shall contract
for the purpose of constructing, equipping, reconstructing, maintaining, repairing, enlarging,
furnishing or remodeling facilities, it shall obtain from the state and furnish to the contractor
an exemption certificate for the project involved, and the contractor may purchase materials
for incorporation in such project. The contractor shall furnish the number of such certificate
to all suppliers from whom such purchases are made, and such suppliers shall execute
invoices covering the same bearing the number of such certificate. Upon completion of the
project the contractor shall furnish to the nonprofit zoo concerned a sworn statement, on a
form to be provided by the director of taxation, that all purchases so made were entitled to
exemption under this subsection. All invoices shall be held by the contractor for a period
of five years and shall be subject to audit by the director of taxation. If any materials pur-
chased under such a certificate are found not to have been incorporated in the building or
other project or not to have been returned for credit or the sales or compensating tax
otherwise imposed upon such materials which will not be so incorporated in the building
or other project reported and paid by such contractor to the director of taxation not later
than the 20th day of the month following the close of the month in which it shall be deter-
mined that such materials will not be used for the purpose for which such certificate was
issued, the nonprofit zoo concerned shall be liable for tax on all materials purchased for the
project, and upon payment thereof it may recover the same from the contractor together
with reasonable attorney fees. Any contractor or any agent, employee or subcontractor
thereof, who shall use or otherwise dispose of any materials purchased under such a certif-
icate for any purpose other than that for which such a certificate is issued without the
payment of the sales or compensating tax otherwise imposed upon such materials, shall be
guilty of a misdemeanor and, upon conviction therefor, shall be subject to the penalties
provided for in subsection (g) of K.S.A. 79-3615, and amendments thereto;

    (yy) all sales of tangible personal property and services purchased by a parent-teacher
association or organization, and all sales of tangible personal property by or on behalf of
such association or organization;

    (zz) all sales of machinery and equipment purchased by over-the-air, free access radio
or television station which is used directly and primarily for the purpose of producing a
broadcast signal or is such that the failure of the machinery or equipment to operate would
cause broadcasting to cease. For purposes of this subsection, machinery and equipment
shall include, but not be limited to, that required by rules and regulations of the federal
communications commission, and all sales of electricity which are essential or necessary for
the purpose of producing a broadcast signal or is such that the failure of the electricity would
cause broadcasting to cease;

    (aaa) all sales of tangible personal property and services purchased by a religious or-
ganization which is exempt from federal income taxation pursuant to section 501 (c)(3) of
the federal internal revenue code, and used exclusively for religious purposes; and

    (bbb) all sales of food for human consumption by an organization which is exempt from
federal income taxation pursuant to section 501 (c)(3) of the federal internal revenue code
of 1986, pursuant to a food distribution program which offers such food at a price below
cost in exchange for the performance of community service by the purchaser thereof.

    Sec. 8. K.S.A. 79-3230 is hereby amended to read as follows: 79-3230. (a) The amount
of income taxes imposed by this act shall be assessed within three years after the return was
filed or the tax as shown to be due on the return was paid, whichever is the later date, and
no proceedings in court for the collection of such taxes shall be begun after the expiration
of such period. For purposes of this act any return filed before the 15th day of the fourth
month following the close of the taxable year shall be considered as being filed on the 15th
day of the fourth month following the close of the taxable year, and any tax shown to be
due on the return and paid before the 15th day of the fourth month following the close of
the taxable year shall be deemed to have been paid on the 15th day of the fourth month
following the close of the taxable year.

    (b) In the case of a false or fraudulent return with intent to evade tax, the tax may be
assessed, or a proceeding in court for collection of such tax may be begun at any time.

    (c) No refund or credit shall be allowed by the director of taxation after three years
from the date prescribed by law for filing the return, provided it was filed before the due
date, unless before the expiration of such period a claim therefor is filed by the taxpayer. If
the return was filed after the due date, a refund claim must be filed not later than three
years from the time the return was actually filed, or two years from the date the tax was
paid, whichever of such periods expires later. Where the assessment of any income tax
imposed by this act has been made within the period of limitation properly applicable
thereto, such tax may be collected by distraint or by a proceeding in court, but only if begun
within one year after the period of limitation as defined in this act.

    (d) In case a taxpayer has made claim for a refund, the taxpayer shall have the right to
commence a suit for the recovery of the refund at the expiration of six months after the
filing of the claim for refund, if no action has been taken by the director of taxation.

    (e) Before the expiration of time prescribed in this section for the assessment of addi-
tional tax or the filing of a claim for a refund, the director of taxation is authorized to enter
into an agreement in writing with the taxpayer consenting to the extension of the periods
of limitations as defined in this act for the assessment of tax or for the filing of a claim for
refund, at any time prior to the expiration of the period of limitations. The period so agreed
upon may be extended by subsequent agreements in writing made before the expiration of
the period previously agreed upon. A copy of all such agreements and extensions thereof
shall be filed with the director of taxation within 30 days after their execution.

    (f) Any taxpayer whose income has been adjusted by the federal internal revenue service
or by the income tax collection agency of another state is required to report such adjustments
to the Kansas department of revenue by mail within 180 days of the date the federal or
other state adjustments are paid, agreed to or become final, whichever is earlier. Such
adjustments shall be reported by filing an amended return for the applicable taxable year
and a copy of the federal or state revenue agent's report detailing such adjustments. In the
event such taxpayer is a corporation, such report shall be by certified or registered mail.

    Notwithstanding the provisions of subsection (a) or (c) of this section, additional income
taxes may be assessed and proceedings in court for collection of such taxes may be com-
menced and any refund or credit may be allowed by the director of taxation within 180 days
following receipt of any such report of adjustments by the Kansas department of revenue.
No assessment shall be made nor any refund or credit shall be allowable under the provisions
of this paragraph except to the extent the same is attributable to changes in the taxpayer's
income due to adjustments indicated by such report.

    (g) In the event of failure to comply with the provisions of this section, the statute of
limitations shall be tolled.

    Sec. 9. K.S.A. 79-2101 is hereby amended to read as follows: 79-2101. Except as pro-
vided by K.S.A. 79-2017, and amendments thereto, all the taxes on personal property that
remain due and unpaid on February 16 January 1 or July 1 shall be collected in the following
manner:

    The county treasurer, between on or before February 20 and 25, shall send a notice by
mail to the person, firm, unincorporated association, company or corporation to whom such
taxes were assessed, and which remain unpaid on February 16 January 1 of any year, to its
post office address as shown by the records in the office of the county clerk treasurer. The
county treasurer, between on or before July 10 and 15, shall send a notice by mail to the
person, firm, unincorporated association, company or corporation to whom such taxes were
assessed, and which remain unpaid on July 1 of any year, to its post office address as shown
by the records in the office of the county clerk treasurer. Failure to receive any such notice
shall not relieve such person, firm, unincorporated association, company or corporation
defaulting in payment of personal taxes from any interest and costs attached thereto. Such
notice shall state the amount of personal tax charged against the party, and notify the party
that the tax may be paid by paying interest thereon from the date it became due and payable
to date of payment computed under the provisions of K.S.A. 79-2004a, and amendments
thereto.

    If such taxes remain unpaid for a period of 30 14 days after mailing such notice, the
county treasurer shall issue a warrant signed by the treasurer directed to the sheriff of the
county, commanding the sheriff to levy the amount of such unpaid taxes and the interest
thereon, together with the costs of executing the warrant and the sheriff's fees for collecting
the same, upon any personal property, tangible or intangible, of the person, firm, unincor-
porated association, company or corporation to whom such taxes were assessed. Such war-
rant shall be delivered to the sheriff. Upon receipt of such tax warrant, the sheriff shall
proceed to collect the taxes the same as upon execution, except that where such taxes were
levied and assessed pursuant to K.S.A. 79-329 through 79-334, and amendments thereto,
they shall be collected as follows:

    The sheriff or county treasurer shall cause notice to be given by registered mail to the
purchaser of the oil and gas from such lease of the amount of such delinquent taxes and
the name of the person against whom they were assessed and from. From and after the
receipt of such notice such purchaser shall not pay to the person owing the taxes or any of
the proceeds of the sale of any oil or gas from such lease, but shall pay the proceeds to the
sheriff until the full amount of such taxes and costs are paid after which the purchaser may
resume the payments for such oil or gas to such person, but this exception shall not prevent
the levy of an execution and sale of the leasehold interest or the physical personal property
on any such lease for the payment of delinquent taxes owed by its owner. Tax warrants
issued pursuant to K.S.A. 79-329 through 79-334, and amendments thereto shall not be
required to be returned prior to 24 months after issuance.

    The sheriff, as soon as the sheriff collects collecting the tax warrant, shall make a return
thereof and shall make a return of all tax warrants delivered to the sheriff on or before
October 1 of the year following the year in which the tax was levied except as otherwise
provided by the preceding paragraph. If the warrant so returned shows that the tax has
been collected, the sheriff shall pay the tax to the county treasurer. If such return shows
that such tax has not been collected, the county treasurer shall file with the clerk of the
district court of the treasurer's county an abstract of the total amount of unpaid taxes and
interest due plus penalties and costs of executing the warrant. The clerk shall enter the total
amount of the unpaid taxes in the appearance docket and note the entry in general index.
No fee shall be charged for making the entry. The total amount shall become a judgment
in the same manner and to the same extent as any other judgment under the code of civil
procedure and shall become a lien on real estate from and after the time of the filing thereof.
A transcript of the judgment may be filed with the clerk of the district court in any other
county and when it is entered in the manner provided above it shall become a lien upon
real estate located in such county in the same manner as is provided in case of other judg-
ments, except that no fee shall be charged for making the entry. Execution, garnishment or
other proceedings in aid of execution may issue within the county or to any other county
on the judgment in the same manner as on judgments under the code of civil procedure
except that any real estate taken upon execution for the collection of such taxes shall be
sold without appraisement. None of the exemptions provided for in the code of civil pro-
cedure shall apply to any such judgment but no such judgment secured for taxes on personal
property shall be levied against a homestead.

    At the time of filing the abstract of the taxes, interest, penalties and costs of executing the
warrant with the clerk of the district court, the county treasurer shall serve notice, in writing,
on the county attorney of such filing. It shall be the duty of the county attorney to commence
such proceedings as are necessary for the collection of such judgment. If execution is not
issued within five years from the date of the entry of any such judgment, or if five years
shall have intervened between the date of the last execution issued on such judgment, and
the time of issuing another writ of execution thereon, such judgment shall become dormant,
and shall cease to operate as a lien on the real estate of the delinquent taxpayer. Such
dormant judgment may be revived in like manner as dormant judgments under the code of
civil procedure. Any such judgment remaining uncollected after 20 years may be allowed
to become dormant if the county commissioners determine, after consideration of all rele-
vant facts, that it is not reasonable to expect such judgment will be collected. The board of
county commissioners may allow such judgment to become dormant at any time if the
original amount of the judgment was less than $50.

    Sec. 10. K.S.A. 1997 Supp. 19-101a is hereby amended to read as follows: 19-101a. (a)
The board of county commissioners may transact all county business and perform all powers
of local legislation and administration it deems appropriate, subject only to the following
limitations, restrictions or prohibitions:

    (1) Counties shall be subject to all acts of the legislature which apply uniformly to all
counties.

    (2) Counties may not consolidate or alter county boundaries.

    (3) Counties may not affect the courts located therein.

    (4) Counties shall be subject to acts of the legislature prescribing limits of indebtedness.

    (5) In the exercise of powers of local legislation and administration authorized under
provisions of this section, the home rule power conferred on cities to determine their local
affairs and government shall not be superseded or impaired without the consent of the
governing body of each city within a county which may be affected.

    (6) Counties may not legislate on social welfare administered under state law enacted
pursuant to or in conformity with public law No. 271--74th congress, or amendments
thereof.

    (7) Counties shall be subject to all acts of the legislature concerning elections, election
commissioners and officers and their duties as such officers and the election of county
officers.

    (8) Counties shall be subject to the limitations and prohibitions imposed under K.S.A.
12-187 to 12-195, inclusive, and amendments thereto, prescribing limitations upon the levy
of retailers' sales taxes by counties.

    (9) Counties may not exempt from or effect changes in statutes made nonuniform in
application solely by reason of authorizing exceptions for counties having adopted a charter
for county government.

    (10) No county may levy ad valorem taxes under the authority of this section upon real
property located within any redevelopment area established under the authority of K.S.A.
12-1772, and amendments thereto, unless the resolution authorizing the same specifically
authorized a portion of the proceeds of such levy to be used to pay the principal of and
interest upon bonds issued by a city under the authority of K.S.A. 12-1774, and amendments
thereto.

    (11) Counties shall have no power under this section to exempt from any statute au-
thorizing or requiring the levy of taxes and providing substitute and additional provisions
on the same subject, unless the resolution authorizing the same specifically provides for a
portion of the proceeds of such levy to be used to pay a portion of the principal and interest
on bonds issued by cities under the authority of K.S.A. 12-1774, and amendments thereto.

    (12) Counties may not exempt from or effect changes in the provisions of K.S.A. 19-
4601 to 19-4625, inclusive, and amendments thereto.

    (13) Except as otherwise specifically authorized by K.S.A. 12-1,101 to 12-1,109, inclu-
sive, and amendments thereto, counties may not levy and collect taxes on incomes from
whatever source derived.

    (14) Counties may not exempt from or effect changes in K.S.A. 19-430, and amend-
ments thereto. Any charter resolution adopted by a county prior to July 1, 1983, exempting
from or effecting changes in K.S.A. 19-430, and amendments thereto, is null and void.

    (15) Counties may not exempt from or effect changes in K.S.A. 19-302, 19-502b, 19-
503, 19-805 or 19-1202, and amendments thereto.

    (16) Counties may not exempt from or effect changes in K.S.A. 13-13a26, and amend-
ments thereto. Any charter resolution adopted by a county, prior to the effective date of
this act, exempting from or effecting changes in K.S.A. 13-13a26, and amendments thereto,
is null and void.

    (17) Counties may not exempt from or effect changes in K.S.A. 71-301, and amend-
ments thereto. Any charter resolution adopted by a county, prior to the effective date of
this act, exempting from or effecting changes in K.S.A. 71-301, and amendments thereto,
is null and void.

    (18) Counties may not exempt from or effect changes in K.S.A. 19-15,139, 19-15,140
and 19-15,141, and amendments thereto. Any charter resolution adopted by a county prior
to the effective date of this act, exempting from or effecting changes in such sections is null
and void.

    (19) Counties may not exempt from or effect changes in the provisions of K.S.A. 12-
1223, 12-1225, 12-1225a, 12-1225b, 12-1225c and 12-1226, and amendments thereto, or
the provisions of K.S.A. 1997 Supp. 12-1260 to 12-1270, inclusive, and amendments thereto,
and 12-1276, and amendments thereto.

    (20) Counties may not exempt from or effect changes in the provisions of K.S.A. 19-
211, and amendments thereto.

    (21) Counties may not exempt from or effect changes in the provisions of K.S.A. 19-
4001 to 19-4015, inclusive, and amendments thereto.

    (22) Counties may not regulate the production or drilling of any oil or gas well in any
manner which would result in the duplication of regulation by the state corporation com-
mission and the Kansas department of health and environment pursuant to chapter 55 and
chapter 65 of the Kansas Statutes Annotated and any rules and regulations adopted pursuant
thereto. Counties may not require any license or permit for the drilling or production of oil
and gas wells. Counties may not impose any fee or charge for the drilling or production of
any oil or gas well.

    (23) Counties may not exempt from or effect changes in K.S.A. 79-41a04, and amend-
ments thereto.

    (24) Counties may not exempt from or effect changes in K.S.A. 1997 Supp. 79-1611,
and amendments thereto.

    (25) Counties may not exempt from or effect changes in K.S.A. 1997 Supp. 79-1494,
and amendments thereto.

    (26) Counties may not exempt from or effect changes in subsection (b) of K.S.A. 19-
202, and amendments thereto.

    (27) Counties may not exempt from or effect changes in subsection (b) of K.S.A. 19-
204, and amendments thereto.

    (28) Counties may not levy or impose an excise, severance or any other tax in the nature
of an excise tax upon the physical severance and production of any mineral or other material
from the earth or water. Any resolution adopted by any county prior to the effective date
of this act imposing or levying any such tax is null and void.
    (29) Counties may not exempt from or effect changes in K.S.A. 79-2017 or 79-2101, and
amendments thereto. Any charter resolution adopted prior to the effective date of this act,
which affected the provisions of K.S.A. 79-2017 or 79-2101, and amendments thereto, is
hereby declared to be null and void.

    (b) Counties shall apply the powers of local legislation granted in subsection (a) by
resolution of the board of county commissioners. If no statutory authority exists for such
local legislation other than that set forth in subsection (a) and the local legislation proposed
under the authority of such subsection is not contrary to any act of the legislature, such
local legislation shall become effective upon passage of a resolution of the board and pub-
lication in the official county newspaper. If the legislation proposed by the board under
authority of subsection (a) is contrary to an act of the legislature which is applicable to the
particular county but not uniformly applicable to all counties, such legislation shall become
effective by passage of a charter resolution in the manner provided in K.S.A. 19-101b, and
amendments thereto.'';

    By renumbering existing sections accordingly;

    Also on page 15, in line 43, after ``K.S.A.'' by inserting ``79-2101, 79-2804g, 79-2804j, 79-
3230, 79-3234, 79-3234a and 79-3606, as amended by section 31 of 1998 Senate Bill No.
493 and K.S.A.'';

    On page 16, in line 2, by striking ``12-1771'' and inserting ``19-101a'';

    In the title, by striking all in line 13; in line 14, by striking all before the semicolon and
inserting ``taxation''; also in line 14, after ``K.S.A.'' by inserting ``79-2101, 79-2804g, 79-3230,
79-3234 and 79-3606, as amended by section 31 of 1998 Senate Bill No. 493 and K.S.A.'';
in line 17, by striking ``12-1771'' and inserting ``19-101a''; also, in line 17, before the period,
by inserting ``; also repealing K.S.A. 79-2804j and 79-3234a'';

                                                                                        And your committee on conference recommends the adoption of this report.

                                                                                    Audrey Langworthy

                                                                                    David R. Corbin

                                                                                    Janis K. Lee
 
                                                                                    Conferees on part of Senate

                                                                                    Phill Kline

                                                                                    Tony Powell

                                                                                    Bruce Larkin
 
Conferees on part of House





 On motion of Rep. Phill Kline, the conference committee report on HB 2584 was
adopted.

 On roll call, the vote was: Yeas 117; Nays 3; Present but not voting: 0; Absent or not
voting: 4.

 Yeas: Adkins, Alldritt, Allen, Ballard, Ballou, Beggs, Benlon, Boston, Burroughs, Camp-
bell, Carmody, Compton, Cook, Correll, Cox, Crow, Dahl, Dean, Dillon, Dreher, Edmonds,
Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Freeborn,
Garner, Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett, Helgerson, Hender-
son, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, Johnson,
Johnston, Kejr, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane,
Larkin, M. Long, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie, Mc-
Kinney, Minor, Mollenkamp, Morrison, Myers, Nichols, O'Connor, Osborne, Packer, Pal-
mer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta, Ray, Reardon,
Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Showalter, Shriver,
Shultz, Sloan, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar,
Vickrey, Vining, Wagle, Weber, Weiland, Wells, Wempe, Wilk, Wilson.

Nays: Aurand, Neufeld, Shore.

 Present but not voting: None.

 Absent or not voting: Geringer, O'Neal, Spangler, Welshimer.

CONFERENCE COMMITTEE REPORT
    Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2726, submits the following report:

    The House accedes to all Senate amendments to the bill, and your committee on con-
ference further agrees to amend the bill, as printed with Senate Committee amendments,
as follows:

    On page 3, following line 26, by inserting the following sections:

    ``Section 1. K.S.A. 1997 Supp. 12-4214 is hereby amended to read as follows: 12-4214.
(a) Except as provided further, when a person is charged with an ordinance traffic infraction
or an ordinance cigarette or tobacco infraction, the notice to appear shall provide a place
where the person may make a written entry of appearance, waive the right to a trial and
plead guilty or no contest. The notice to appear shall provide a space in which the law
enforcement officer, except as provided in subsection (b), shall enter the appropriate fine
specified in the fine schedule established by the municipal judge in accordance with K.S.A.
12-4305 and amendments thereto, in the case of a traffic infraction, or a fine of $25, in the
case of an ordinance cigarette or tobacco infraction. Either the notice to appear or a separate
form provided to the person by the law enforcement officer shall provide an explanation:
(1) Of the person's right to appear and right to trial and the person's right to pay the
appropriate fine prior to the appearance date; (2) that failure to either pay such fine or
appear at the specified time may result in issuance of a warrant for the person's arrest; and
(3) in the case of a traffic infraction, that failure to either pay such fine or appear at the
specified time may result in the suspension of the person's driver's license. The law enforce-
ment officer shall provide the person with the telephone number and address of the mu-
nicipal court to which the written entry of appearance, waiver of trial, plea of guilty or no
contest and payment of fine shall be mailed.

    (b) In lieu of the law enforcement officer entering the appropriate fine for an ordinance
traffic infraction, the officer may direct the person charged with an ordinance traffic in-
fraction to contact the clerk of the municipal court to determine the applicable fine or
provide the person with a copy of the fine schedule established by the municipal judge in
accordance with K.S.A. 12-4305 and amendments thereto.

    (c) When a person is charged with an ordinance cigarette or tobacco infraction, the
judge may require the juvenile to appear in court with a parent or legal guardian.

    (c) (d) This section shall be a part of and supplemental to the provisions of article 42
of chapter 12 of the Kansas Statutes Annotated and acts amendatory thereof or supplemental
thereto.

    Sec. 2. K.S.A. 1997 Supp. 12-4305 is hereby amended to read as follows: 12-4305. (a)
The municipal judge shall establish a schedule of fines which shall be imposed for municipal
ordinance violations that are classified as ordinance traffic infractions. Also, the municipal
judge may establish a schedule of fines which shall be imposed for the violation of certain
other ordinances. Any fine so established shall be within the minimum and maximum al-
lowable fines established by ordinance for such offenses by the governing body. The follow-
ing traffic violations are specifically excluded from any schedule of fines:

    (1) Reckless driving;

    (2) driving while under the influence of alcohol or drugs, or both, or driving with a blood
or breath alcohol concentration of .08 or more;

    (3) driving without a valid license issued or on a canceled, suspended or revoked license;

    (4) fleeing or attempting to elude a police officer; or

    (5) offense comparable to those prescribed by K.S.A. 8-1602, 8-1603 and 8-1604 and
amendments thereto.

    (b) A person charged with the violation of an ordinance contained in a schedule of fines
established under subsection (a) shall, except as provided in subsection (c), appear at the
place and time specified in the notice to appear. If the person enters an appearance, waives
right to trial, pleads guilty or no contest, the fine shall be no greater than that specified in
the schedule.

    (c) Except as provided in subsection (c) of K.S.A. 12-4214, and amendments thereto,
prior to the time specified in the notice to appear, a person charged with an ordinance
cigarette or tobacco infraction or a violation of an ordinance contained in a schedule of fines
established under subsection (a) may enter an appearance, waive right to trial, plead guilty
or no contest and pay the fine for the violation as specified in the schedule or in subsection
(a) of K.S.A. 12-4214 and amendments thereto. At the election of the person charged, such
appearance, waiver, plea and payment may be made by mail or in person and payment may
be by personal check. The complaint shall not have been complied with if a check is not
honored for any reason, or the fine is not paid in full prior to the time specified in the notice
to appear. When a person charged with an ordinance cigarette or tobacco infraction or an
ordinance traffic infraction or other ordinance violation on a schedule of fines makes pay-
ment without executing a written waiver of right to trial and plea of guilty or no contest,
the payment shall be deemed such an appearance, waiver of right to trial and plea of no
contest.

    The municipal judge may authorize the clerk of the municipal court or some other person
to accept by mail or in person such voluntary appearance, plea of guilty or no contest and
payment of the fine imposed by the schedule or by subsection (a) of K.S.A. 12-4214 and
amendments thereto.

    The schedule of fines and persons authorized to accept such pleas shall be conspicuously
displayed in the office where such voluntary appearance, plea of guilty and payment of fine
occurs.'';

    An by renumbering the remaining sections accordingly;

    Also on page 3, in line 27, by striking ``Section'' and inserting ``Sec.'';

    On page 10, in line 24, following the period, by inserting ``In addition, the judge may
require the juvenile to appear in court with a parent or legal guardian.'';

    On page 12, following line 26, by inserting the following:

    ``(b) The notice to appear may provide that the person charged with the infraction shall
appear in court with a parent or legal guardian and shall provide that the person charged
has a right to trial.'';

    On page 13, in line 30, before ``21-3105'' by inserting ``12-4214, 12-4305,''

    On page 1, in the title, in line 19, before ``21-3105'' by inserting ``12-4214, 12-4305,'';

                                                                                        And your committee on conference recommends the adoption of this report.

                                                                                    Keith Schraad

                                                                                    Lana Oleen

                                                                                    Sherman Jones
 
                                                                                    Conferees on part of Senate

                                                                                    Tim Carmody

                                                                                    Terry Presta

                                                                                    Jim D. Garner
 
Conferees on part of House

 On motion of Rep. Presta, the conference committee report on HB 2726 was adopted.

 On roll call, the vote was: Yeas 97; Nays 25; Present but not voting: 0; Absent or not
voting: 2.

 Yeas: Adkins, Allen, Aurand, Ballard, Beggs, Benlon, Boston, Burroughs, Carmody,
Compton, Cook, Cox, Dahl, Dillon, Dreher, Edmonds, Empson, Faber, Farmer, Feuer-
born, Flaharty, Flower, Franklin, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett,
Henderson, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, Johnson,
Kejr, Kirk, Klein, Phil Kline, Phill Kline, Kuether, Landwehr, Lane, M. Long, P. Long,
Mason, Mayans, Mays, McCreary, McKinney, Minor, Mollenkamp, Morrison, Myers, Neu-
feld, Nichols, O'Connor, Osborne, Packer, Palmer, E. Peterson, J. Peterson, Pottorff, Pow-
ell, Powers, Presta, Ray, Reardon, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger,
Sharp, Shore, Showalter, Shriver, Shultz, Sloan, Stone, Storm, Tanner, Toelkes, Tomlinson,
Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wilk, Wilson.

 Nays: Alldritt, Ballou, Campbell, Correll, Crow, Dean, Findley, Flora, Freeborn, Garner,
Gilbert, Helgerson, Henry, Johnston, Krehbiel, Larkin, McClure, McKechnie, Pauls,
Phelps, Reinhardt, Spangler, Swenson, Thimesch, Wempe.

 Present but not voting: None.

 Absent or not voting: Geringer, O'Neal.

INTRODUCTION OF ORIGINAL MOTIONS
 Having voted on the prevailing side, Rep. McClure moved, pursuant to House Rule 2303,
that the House reconsider its action in not concurring in Senate amendments to HB 2868.
The motion prevailed.

 The question then reverted back to the motion of Rep. Schwartz (see previous action)
and the House concurred in Senate amendments to HB 2868, An act concerning wildlife;
relating to certain big game permits and tags; relating to total licensed acreage for controlled
shooting areas in a county; amending K.S.A. 32-945 and K.S.A. 1997 Supp. 32-937 and
repealing the existing sections. (The House requested the Senate to return the bill, which
was in conference.

 On roll call, the vote was: Yeas 115; Nays 7; Present but not voting: 0; Absent or not
voting: 2.

 Yeas: Adkins, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Burroughs, Camp-
bell, Carmody, Compton, Cook, Correll, Cox, Crow, Dahl, Dean, Dillon, Dreher, Edmonds,
Empson, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Franklin, Freeborn, Garner,
Gilbert, Gilmore, Glasscock, Gregory, Haley, Hayzlett, Helgerson, Henderson, Henry,
Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, Johnson, Johnston,
Kejr, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, M.
Long, P. Long, Mason, Mays, McClure, McCreary, McKechnie, McKinney, Minor, Mol-
lenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, Osborne, Palmer, Pauls, E. Pe-
terson, J. Peterson, Phelps, Pottorff, Powell, Powers, Ray, Reardon, Reinhardt, Ruff, Sa-
muelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showalter, Shriver, Sloan,
Spangler, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vick-
rey, Vining, Wagle, Weber, Weiland, Wells, Welshimer, Wempe, Wilk, Wilson.

 Nays: Alldritt, Faber, Grant, Mayans, Packer, Presta, Shultz.

 Present but not voting: None.

 Absent or not voting: Geringer, O'Neal.

MOTIONS TO CONCUR AND NONCONCUR
 On motion of Rep. Mayans, the House concurred in Senate amendments to HB 2312,
An act concerning the uniform controlled substances act; amending K.S.A. 1997 Supp.
65-4111 and repealing the existing section.

 On roll call, the vote was: Yeas 121; Nays 0; Present but not voting: 0; Absent or not
voting: 3.

 Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Burroughs,
Campbell, Carmody, Compton, Cook, Correll, Cox, Crow, Dahl, Dean, Dillon, Dreher,
Edmonds, Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Freeborn,
Garner, Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett, Helgerson, Hender-
son, Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, Johnson,
Johnston, Kejr, Kirk, Klein, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane,
Larkin, M. Long, P. Long, Mason, Mayans, Mays, McClure, McCreary, McKechnie, Mc-
Kinney, Minor, Mollenkamp, Morrison, Myers, Neufeld, Nichols, O'Connor, Osborne,
Packer, Palmer, Pauls, E. Peterson, J. Peterson, Phelps, Pottorff, Powell, Powers, Presta,
Ray, Reardon, Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Shallenburger, Sharp, Shore,
Showalter, Shriver, Shultz, Sloan, Spangler, Stone, Storm, Swenson, Tanner, Thimesch,
Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber, Weiland, Wells, Welshimer,
Wempe, Wilk, Wilson.

 Nays: None.

 Present but not voting: None.

 Absent or not voting: Franklin, Geringer, O'Neal.

CONFERENCE COMMITTEE REPORT
    Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 262, submits the following report:

    The Senate accedes to all House amendments to the bill, and your committee on con-
ference further agrees to amend the bill, as printed with House Committee amendments,
as follows:

    On page 1, by striking all in lines 17 through 43;

    By striking all on pages 2 through 8;

    On page 9, by striking all in lines 1 through 36 and inserting the following new section:

    ``Section 1. K.S.A. 20-355 is hereby amended to read as follows: 20-355. (a) On or
before April 15 of every even-numbered year, the supreme court shall examine the need
for more or less divisions or district magistrate judge positions of the district court in each
judicial district which has not approved the proposition of nonpartisan selection of district
judges of the district court, as provided in K.S.A. 20-2901, and amendments thereto, and,
except that on or before May 15, 1998, the supreme court shall examine the need for more
or less divisions or district magistrate judge positions of the district court in each judicial
district which has not approved the proposition of nonpartisan selection of judges of the
district court. On or before May 15 of each year, the supreme court shall examine the need
for more or less divisions or positions of the district court in judicial districts which have
approved such proposition. Whenever the supreme court shall determine that in order to
effectively expedite the business of the district court in any judicial district in this state, the
need exists for an additional district judge of the district court and an additional division of
or position in such court, the supreme court shall so certify to the secretary of state, and
where the need for such additional district judge of the district court and division or position
is in a judicial district in which such proposition of nonpartisan selection of district court
judges of the district court has been approved, such certification also shall be made to the
chairperson of the district judicial nominating commission of such judicial district. Any
additional division or position so certified shall be designated as the next numbered division
or position of such court.

    (b) Upon certification of an additional district judge of the district court and an addi-
tional division or position of the district court in any judicial district which has not approved
the proposition of nonpartisan selection of district judges of the district court, the first district
judge of the district court of such new division or position shall be elected at the general
election held in November of the year in which the division or position is determined to be
necessary and such judge shall take office on the second Monday in January of the following
year. No judge of any such new division shall be appointed pending the first election to fill
such office.

    (c) Upon certification of an additional district judge of the district court and an addi-
tional division or position of the district court in any judicial district which has approved the
proposition of nonpartisan selection of district judges of the district court, the additional
division or position shall be created on July 15 of the year in which such certification is
made, and the additional district judge shall be selected and take office in the manner
prescribed by subsection (b) of K.S.A. 20-2913, and amendments thereto. The additional
position shall be created on July 1 of the year in which the position is approved, and the
additional district magistrate judge shall be selected and take office in the manner prescribed
by K.S.A. 20-2914 and amendments thereto.

    (d) The supreme court shall determine the county or judicial district in which the newly
created division or position shall be placed.

    (e) Any additional district judge or district magistrate judge position created by this
section shall be considered a position created by the supreme court and not a civil appoint-
ment to a state office pursuant to K.S.A. 46-234, and amendments thereto.

    Sec. 2. K.S.A. 25-205 is hereby amended to read as follows: 25-205. (a) Except as oth-
erwise provided in subsection (h) this section, the names of candidates for national, state,
county and township offices shall be printed upon the official primary ballot when each shall
have qualified to become a candidate by one of the following methods and none other: (1)
They shall have had filed in their behalf, not later than 12:00 noon, June 10, prior to such
primary election, or if such date falls on Saturday, Sunday or a holiday, then before 12:00
noon of the next following day that is not a Saturday, Sunday or a holiday, nomination
petitions, as provided for in this act, except that in 1998, candidates for judge or district
magistrate judge of the district court for positions created in 1998 in those judicial districts
that have not approved the proposition of nonpartisan selection of judges of the district court
shall have filed in their behalf, not later than 12:00 noon, July 1, 1998, nomination petitions,
as provided for in this act; or (2) they shall have filed not later than the time for filing
nomination petitions, as above provided, with the proper officer a declaration of intention
to become a candidate, accompanied by the fee required by law. Such declaration shall be
prescribed by the secretary of state.

    (b) Nomination petitions shall be in substantially the following form:

    I, the undersigned, an elector of the county of ____________, and state of Kansas,
and a duly registered voter, and a member of ____________ party, hereby nominate
____________, who resides in the township of ____________ (or at number
____________ on ____________ street, city of ____________), in the
county of ____________ and state of Kansas, as a candidate for the office of (here
specify the office) ____________, to be voted for at the primary election to be held
on the first Tuesday in August in ____________, as representing the principles of
such party; and I further declare that I intend to support the candidate herein named and
that I have not signed and will not sign any nomination petition for any other person, for
such office at such primary election.

(HEADING)
Name ofStreet NumberName ofDate of
Signers.or Rural RouteCity.Signing.
(as registered).
    All nomination petitions shall have substantially the foregoing form, written or printed at
the top thereof. No signature shall be counted unless it is upon a sheet having such written
or printed form at the top thereof.

    (c) Each signer of a nomination petition shall sign but one such petition for the same
office, and shall declare that such person intends to support the candidate therein named,
and shall add to such person's signature and residence, if in a city, by street and number (if
any); or, otherwise by post-office address. No signature shall be counted unless the place
of residence of the signer is clearly indicated and the date of signing given as herein required
and if ditto marks are used to indicate address they shall be continuous and clearly made.
Such sheets shall not be cut or pasted together.

    (d) All signers of each separate nomination petition shall reside in the same county and
election district of the office sought. The affidavit described in this paragraph of a qualified
elector who resides in such county and election district or of the candidate shall be appended
to each petition and shall contain, at the end of each set of documents carried by each
circulator, a verification, signed by the circulator or the candidate, to the effect that such
circulator or the candidate personally witnessed the signing of the petition by each person
whose name appears thereon. The person making such affidavit shall be duly registered to
vote.

    (e) Except as otherwise provided in subsection (g), nomination petitions shall be signed:

    (1) If for a state officer elected on a statewide basis or for the office of United States
senator, by voters equal in number to not less than 1% of the total of the current voter
registration of the party designated in the state as compiled by the office of the secretary
of state;

    (2) If for a state or national officer elected on less than a statewide basis, by voters equal
in number to not less than 2% of the total of the current voter registration of the party
designated in such district as compiled by the office of the secretary of state, except that
for the office of district magistrate judge, by not less than 2% of the total of the current
voter registration of the party designated in the county in which such office is to be filled
as certified to the secretary of state in accordance with K.S.A. 25-3302, and amendments
thereto;

    (3) If for a county office, by voters equal in number to not less than 3% of the total of
the current voter registration of the party designated in such district or county as compiled
by the county election officer and certified to the secretary of state in accordance with
K.S.A. 25-3302, and amendments thereto; and

    (4) If for a township office, by voters equal in number to not less than 3% of the total
of the current voter registration of the party designated in such township as compiled by
the county election officer and certified to the secretary of state in accordance with K.S.A.
25-3302, and amendments thereto.

    (f) Subject to the requirements of K.S.A. 25-202, and amendments thereto, any political
organization filing nomination petitions for a majority of the state or county offices, as
provided in this act, shall have a separate primary election ballot as a political party and,
upon receipt of such nomination petitions, the respective officers shall prepare a separate
state and county ballot for such new party in their respective counties or districts thereof
in the same manner as is provided for existing parties.

    (g) (1) In the year 1992, if new boundary lines are defined and districts established in
the manner prescribed by law on or after the effective date of this act and on or before May
10, 1992, for the offices of representative in the United States congress, senator and rep-
resentative in the legislature of the state of Kansas, and member of the state board of
education, nomination petitions for nomination to such offices shall be signed by voters
equal in number to not less than 1% of the total of the current voter registration of the
party designated in the district as compiled by the office of the secretary of state.

    (2) In the year 1992, if new boundary lines are defined and districts established in the
manner prescribed by law on or after May 11, 1992, nomination petitions for nomination
to the following offices shall be signed by registered voters of the party designated in the
district equal in number to not less than the following:

    (A) For the office of representative
    in the United States congress 		1,000 registered voters;
    (B) for the office of member of the
    state board of education 		300 registered voters;
    (C) for the office of state
    senator 		75 registered voters; and
    (D) for the office of state
    representative 		25 registered voters.
    (h) (1) In the year 1992, if new boundary lines are defined and districts established in
the manner prescribed by law for the offices of representative in the United States congress,
senator and representative in the legislature of the state of Kansas, and member of the state
board of education, on or before June 12, 1992, the deadline for filing nomination petitions
and declarations of intention to become a candidate for such office, accompanied by the fee
required by law, shall be June 24, 1992.

    (2) In the year 1992, if new boundary lines are defined and districts established in the
manner prescribed by law for the offices of representative in the United States congress,
senator and representative in the legislature of the state of Kansas, and member of the state
board of education, on or after June 13, 1992, the deadline for filing nomination petitions
and declarations of intention to become a candidate for such office, accompanied by the fee
required by law, shall be July 14, 1992.

    Sec. 3. On and after July 1, 1998, K.S.A. 43-158 is hereby amended to read as follows:
43-158. The following persons shall be excused from jury service: (a) Persons unable to read,
write, and understand the English language with a degree of proficiency sufficient to fill out
respond to a jury questionnaire form prepared by the commissioner;

    (b) persons under adjudication of incompetency; and

    (c) persons who within ten (10) 10 years immediately preceding have been convicted
of or pleaded guilty, or nolo contendere, to an indictment or information charging a felony.

    Sec. 4. On and after July 1, 1998, K.S.A. 43-161 is hereby amended to read as follows:
43-161. Each jury commissioner may require any person summoned for jury duty whose
name has been selected for a jury list prepared in accordance with the provisions of K.S.A.
43-162 and amendments thereto to answer in writing such questions as he the commissioner
may address to such person, touching his relating to such person's name, age, residence,
occupation and qualifications as a juror, with a view to the due and faithful jury service of
such person; and also all such questions as to involving similar matters touching relating to
all persons in his household living in such person's residence.

    Any such person summoned for jury duty who shall fail or refuse whose name has been
selected for a jury list who fails or refuses to answer such questions in writing, and signing
his such person's name thereto, shall be cited for contempt of court.

    Any such person summoned for jury duty whose name has been selected for a jury list
who shall willfully or corruptly make makes false answers to such questions put to him such
person by the jury commissioner shall be deemed to be guilty of a class A nonperson mis-
demeanor.

    Sec. 5. K.S.A. 20-355 and 25-205 are hereby repealed.

    Sec. 6. On and after July 1, 1998, K.S.A. 43-158 and 43-161 are hereby repealed.'';

    And by renumbering sections accordingly;

    Also on page 9, in line 38, by striking ``statute book'' and inserting ``Kansas register'';

    On page 1, in the title, by striking all in lines 10 through 14 and inserting ``AN ACT
concerning courts; relating to additional district magistrate positions; election filing require-
ments; jurors, qualifications and questionnaires; amending K.S.A. 20-355, 25-205, 43-158
and 43-161 and repealing the existing sections.'';

                                                                                        And your committee on conference recommends the adoption of this report.

                                                                                    Tim Carmody

                                                                                    Terry Presta

                                                                                    Jim D. Garner
 
                                                                                    Conferees on part of House

                                                                                    Tim Emert

                                                                                    Keith Schraad

                                                                                    Greta Goodwin
 
Conferees on part of Senate

 On motion of Rep. Carmody, the conference committee report on SB 262 was adopted.

 On roll call, the vote was: Yeas 114; Nays 7; Present but not voting: 0; Absent or not
voting: 3.

 Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Burroughs,
Campbell, Carmody, Compton, Cook, Correll, Cox, Dahl, Dean, Dillon, Dreher, Edmonds,
Empson, Faber, Farmer, Feuerborn, Findley, Flaharty, Flora, Flower, Freeborn, Garner,
Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett, Helgerson, Henderson,
Henry, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, Johnson, John-
ston, Kejr, Kirk, Phil Kline, Phill Kline, Krehbiel, Kuether, Landwehr, Lane, Larkin, M.
Long, P. Long, Mason, Mays, McClure, McCreary, McKechnie, McKinney, Minor, Mol-
lenkamp, Morrison, Myers, Nichols, O'Connor, Osborne, Packer, Palmer, Pauls, E. Peter-
son, J. Peterson, Phelps, Powell, Powers, Presta, Ray, Reardon, Reinhardt, Ruff, Samuelson,
Sawyer, Schwartz, Shallenburger, Sharp, Shore, Showalter, Shultz, Sloan, Stone, Storm,
Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey, Vining, Wagle, Weber,
Weiland, Wells, Welshimer, Wempe, Wilk, Wilson.

 Nays: Crow, Franklin, Klein, Neufeld, Pottorff, Shriver, Spangler.

 Present but not voting: None.

 Absent or not voting: Geringer, Mayans, O'Neal.

 The House stood in recess until 10:50 p.m.

______
Late Night Session
 The House met pursuant to recess with Speaker Shallenburger in the chair.

CONFERENCE COMMITTEE REPORT
    Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 6, submits the following report:

    The Senate accedes to all House amendments to the bill, and your committee on con-
ference further agrees to amend the bill, as printed with Senate Committee of the Whole
amendments, as follows:

    By striking all on pages 5 through 8 and inserting the following:

    ``New Section 1. (a) Any taxpayer described in K.S.A. 79-1106 and amendments thereto
which owns, capitalizes or utilizes an affiliate with one of the affiliate's purposes being to
make, hold or manage for, or on behalf of, the taxpayer, investments in securities which the
taxpayer would be permitted to make for its own account may be required to file consoli-
dated returns or combined reports for purposes of determining the tax liability under article
11 of chapter 79 of the Kansas Statutes Annotated as if such taxpayer and affiliate were one
entity.

    (b) (1) Any taxpayer required to file a consolidated return or combined report under
section 1 and amendments thereto, and required to determine an apportionment percentage
under K.S.A. 79-1129 and amendments thereto shall not include in either the numerator
or the denominator of the receipts factor described in K.S.A. 79-1130 and amendments
thereto amounts received from or provided to an affiliate described in subsection (a) as
consideration from investment assets and activities and trading assets and activities that
represent inter-company transactions between the taxpayer and such affiliate; and

    (2) receipts as described in subsection (m) of K.S.A. 79-1130 and amendments thereto
received by an affiliate described in subsection (a) shall be treated by a taxpayer required
to file a consolidated return or combined report under section 1 and amendments thereto
as receipts of the taxpayer.

    (c) For taxpayers described in K.S.A. 79-1106 and amendments thereto, the secretary
of revenue may require returns on a consolidated basis or combined reporting and may
distribute or allocate gross income, deductions, credits, or allowances between two or more
organizations, trades or businesses, whether or not incorporated, or organized in the United
States or Kansas or affiliated, owned or controlled directly or indirectly by the same interests,
if the secretary of revenue determines such allocation is necessary to prevent evasion of
taxes or to clearly reflect income of the organizations, trades or businesses.

    (d) This section shall be and constitute a part of and shall be supplemental to the
privilege tax statutes enacted at K.S.A. 79-1106 et seq. and amendments thereto.

    Sec. 2. K.S.A. 79-1107 is hereby amended to read as follows: 79-1107. Every national
banking association and state bank located or doing business within the state shall pay to
the state for the privilege of doing business within the state a tax according to or measured
by its net income for the next preceding taxable year to be computed as provided in this
act. Such tax shall consist of a normal tax and a surtax and shall be computed as follows:

    (a) The normal tax shall be an amount equal to 41/4% 21/4% of such net income; and

    (b) the surtax shall be an amount equal to 21/8% of such net income in excess of $25,000.

    The tax levied shall be in lieu of ad valorem taxes which might otherwise be imposed by
the state or political subdivisions thereof upon shares of capital stock or the intangible assets
of national banking associations and state banks.

    Sec. 3. K.S.A. 79-1108 is hereby amended to read as follows: 79-1108. Every trust
company and savings and loan association located or doing business within the state shall
pay to the state for the privilege of doing business within the state a tax according to or
measured by its net income for the next preceding taxable year to be computed as provided
in this act. Such tax shall consist of a normal tax and a surtax and shall be computed as
follows:

    (a) The normal tax on every trust company and savings and loan association shall be an
amount equal to 41/2% 21/4% of such net income; and

    (b) the surtax on every trust company and savings and loan association shall be an
amount equal to 21/4% of such net income in excess of $25,000.

    The tax levied shall be in lieu of ad valorem taxes which might otherwise be imposed by
the state or political subdivision thereof upon shares of capital stock or other intangible
assets of trust companies and savings and loan associations.

    New Sec. 4. The provisions of this act shall apply to all taxable years commencing after
December 31, 1997.

    Sec. 5. K.S.A. 79-1107 and 79-1108 are hereby repealed.

    Sec. 6. This act shall take effect and be in force from and after its publication in the
statute book.'';

    In the title, in line 12, by striking all after ``to''; by striking all in lines 13 through 15 and
inserting ``financial institution privilege taxation; amending K.S.A. 79-1107 and 79-1108 and
repealing the existing sections.'';

                                                                                        And your committee on conference recommends the adoption of this report.

                                                                                    Phill Kline

                                                                                    Tony Powell
 
                                                                                    Conferees on part of House

                                                                                    Audrey Langworthy

                                                                                    David R. Corbin
 
Conferees on part of Senate

 On motion of Rep. Cox, the conference committee report on SB 6 was adopted.

 On roll call, the vote was: Yeas 81; Nays 40; Present but not voting: 1; Absent or not
voting: 2.

 Yeas: Adkins, Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Benlon, Boston, Burroughs,
Carmody, Compton, Correll, Cox, Crow, Dahl, Dillon, Dreher, Empson, Feuerborn, Fin-
dley, Flaharty, Flora, Flower, Freeborn, Gilbert, Glasscock, Grant, Helgerson, Henry,
Holmes, Huff, Humerickhouse, Hutchins, Jennison, Johnson, Johnston, Kejr, Kirk, Phil
Kline, Kuether, Larkin, M. Long, P. Long, Mason, Mays, McClure, McKinney, Minor,
Morrison, Neufeld, Nichols, Osborne, Pauls, E. Peterson, Phelps, Powers, Ray, Reardon,
Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Sharp, Showalter, Shriver, Shultz, Sloan,
Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Weber, Weiland, Wells, Welshimer,
Wempe, Wilk.

 Nays: Campbell, Cook, Dean, Edmonds, Faber, Farmer, Franklin, Garner, Gilmore,
Gregory, Haley, Hayzlett, Henderson, Horst, Howell, Klein, Phill Kline, Krehbiel, Land-
wehr, Lane, Mayans, McCreary, McKechnie, Mollenkamp, Myers, O'Connor, Packer, Pal-
mer, J. Peterson, Pottorff, Powell, Presta, Shallenburger, Shore, Spangler, Tomlinson, To-
plikar, Vickrey, Vining, Wagle.

 Present but not voting: Wilson.

 Absent or not voting: Geringer, O'Neal.

MESSAGE FROM THE SENATE
 Announcing passage of SB 501.

 The Senate adopts conference committee report on HB 2185.

 The Senate adopts conference committee report on HB 2510.

INTRODUCTION OF ORIGINAL MOTIONS
 On motion of Rep. Jennison, pursuant to subsection (k) of Joint Rule 4 of the Joint Rules
of the Senate and House of Representatives, the rules were suspended for the purpose of
considering HB 2510; SB 5.

CONFERENCE COMMITTEE REPORT
    Mr. President and Mr. Speaker: Your committee on conference on Senate amend-
ments to HB 2510, submits the following report:

    The House accedes to all Senate amendments to the bill, and your committee on con-
ference further agrees to amend the bill, as printed as Amended by Senate on Final Action,
as follows:

    On page 1, following line 21, by inserting:

    ``Section 1. K.S.A. 1997 Supp. 74-8802 is hereby amended to read as follows: 74-8802.
As used in this the Kansas parimutuel racing act unless the context otherwise requires:

    (a) ``Breakage'' means the odd cents by which the amount payable on each dollar wa-
gered exceeds:

    (1) A multiple of $.10, for parimutuel pools from races conducted in this state; and

    (2) a multiple of such other number of cents as provided by law of the host jurisdiction,
for interstate combined wagering pools.

    (b) ``Commission'' means the Kansas racing and gaming commission created by this act.

    (c) ``Concessionaire licensee'' means a person, partnership, corporation or association
licensed by the commission to utilize a space or privilege within a racetrack facility to sell
goods or services.

    (d) ``Contract'' means an agreement, written or oral, between two or more persons,
partnerships, corporations or associations, or any combination thereof, which creates an
obligation between the parties.

    (e) ``Crossover employment'' means a situation in which an occupational licensee is con-
currently employed at the same racing facility by an organization licensee and a facility
owner licensee or facility manager licensee.
    (f) ``Dual racetrack facility'' means a racetrack facility for the racing of both horses and
greyhounds or two immediately adjacent racetrack facilities, owned by the same licensee,
one for racing horses and one for racing greyhounds.

    (f) (g) ``Executive director'' means the executive director of the commission.

    (g) (h) ``Facility manager licensee'' means a person, partnership, corporation or asso-
ciation licensed by the commission and having a contract with an organization licensee to
manage a racetrack facility.

    (h) (i) ``Facility owner licensee'' means a person, partnership, corporation or association,
or the state of Kansas or any political subdivision thereof, licensed by the commission to
construct or own a racetrack facility but does not mean an organization licensee which owns
the racetrack facility in which it conducts horse or greyhound racing.

    (i) (j) ``Fair association'' means an association organized pursuant to K.S.A. 2-125 et seq.
and amendments thereto or a nonprofit association determined by the commission to be
otherwise organized to conduct fair activities pursuant to findings of fact entered by the
commission in a license order.

    (j) (k) ``Financial interest'' means an interest that could result directly or indirectly in
receiving a pecuniary gain or sustaining a pecuniary loss as a result of ownership or interest
in a business entity or activity or as a result of a salary, gratuity or other compensation or
remuneration from any person.

    (k) (l) ``Greyhound'' means any greyhound breed of dog properly registered with the
national greyhound association of Abilene, Kansas.

    (l) (m) ``Horsemen's association'' means any association or corporation:

    (1) All officers, directors, members and shareholders of which are licensed owners of
horses or licensed trainers of horses, or both;

    (2) which is applying for or has been issued a facility owner license authorizing own-
ership of Eureka Downs, Anthony Downs or a racetrack facility on or adjacent to premises
used by a fair association to conduct fair activities; and

    (3) none of the officers, directors, members or shareholders of which holds another
facility owner license or is an officer, director, member or shareholder of another facility
owner licensee.

    (m) (n) ``Horsemen's nonprofit organization'' means any nonprofit organization:

    (1) All officers, directors, members or shareholders of which are licensed owners of
horses or licensed trainers of horses, or both; and

    (2) which is applying for or has been issued an organization license authorizing the
conduct of horse races at Eureka Downs, Anthony Downs or a racetrack facility on or
adjacent to premises used by a fair association to conduct fair activities.

    (n) (o) ``Host facility'' means the racetrack at which the race is run or, if the race is run
in a jurisdiction which is not participating in the interstate combined wagering pool, the
racetrack or other facility which is designated as the host facility.

    (o) (p) ``Host jurisdiction'' means the jurisdiction where the host facility is located.

    (p) (q) ``Interstate combined wagering pool'' means a parimutuel pool established in
one jurisdiction which is combined with comparable parimutuel pools from one or more
racing jurisdictions for the purpose of establishing the amount of money returned on a
successful wager in the participating jurisdictions.

    (q) (r) ``Intertrack wagering'' means wagering on a simulcast race at a licensed racetrack
facility or at a facility which is licensed in its racing jurisdiction to conduct live races.

    (r) (s) ``Intrastate combined wagering pool'' means a parimutuel pool which is combined
with comparable parimutuel pools from one or more racetrack facilities for the purpose of
establishing the amount of money returned on a successful wager at the participating race-
track facilities.

    (s) (t) ``Kansas-whelped greyhound'' means a greyhound whelped and raised in Kansas
for the first six months of its life.

    (t) (u) ``Minus pool'' means a parimutuel pool in which, after deducting the takeout, not
enough money remains in the pool to pay the legally prescribed minimum return to those
placing winning wagers, and in which the organization licensee would be required to pay
the remaining amount due.

    (u) (v) ``Nonprofit organization'' means:

    (1) A corporation which is incorporated in Kansas as a not-for-profit corporation pur-
suant to the Kansas general corporation code and the net earnings of which do not inure to
the benefit of any shareholder, individual member or person; or

    (2) a fair association.

    (v) (w) ``Occupation licensee'' means a person licensed by the commission to perform
an occupation or provide services which the commission has identified as requiring a license
pursuant to this act.

    (w) (x) ``Off-track wagering'' means wagering on a simulcast race at a facility which is
not licensed in its jurisdiction to conduct live races.

    (x) (y) ``Organization licensee'' means a nonprofit organization licensed by the commis-
sion to conduct races pursuant to this act and, if the license so provides, to construct or own
a racetrack facility.

    (y) (z) ``Parimutuel pool'' means the total money wagered by individuals on one or more
horses or greyhounds in a particular horse or greyhound race to win, place or show, or
combinations thereof, as established by the commission, and, except in the case of an in-
terstate or intrastate combined wagering pool, held by the organization licensee pursuant
to the parimutuel system of wagering. There is a separate parimutuel pool for win, for place,
for show and for each of the other forms of betting provided for by the rules and regulations
of the commission.

    (z) (aa) ``Parimutuel wagering'' means a form of wagering on the outcome of horse and
greyhound races in which those who wager purchase tickets of various denominations on
one or more horses or greyhounds and all wagers for each race are pooled and the winning
ticket holders are paid prizes from such pool in amounts proportional to the total receipts
in the pool.

    (aa) (bb) ``Race meeting'' means the entire period one or more periods of time racing
days during a calendar year designated by the commission for which an organization licensee
has been approved by the commission to hold live or simulcast horse or greyhound races at
which parimutuel wagering is conducted, including such additional time as designated by
the commission for the conduct of official business before and after the races.

    (bb) (cc) ``Racetrack facility'' means a racetrack within Kansas used for the racing of
horses or greyhounds, or both, including the track surface, grandstands, clubhouse, all an-
imal housing and handling areas, other areas in which a person may enter only upon payment
of an admission fee or upon presentation of authorized credentials and such additional areas
as designated by the commission.

    (cc) (dd) ``Racing jurisdiction'' or ``jurisdiction'' means a governmental authority which
is responsible for the regulation of live or simulcast racing in its jurisdiction.

    (dd) (ee) ``Racing or wagering equipment or services licensee'' means any person, part-
nership, corporation or association licensed by the commission to provide integral racing or
wagering equipment or services, as designated by the commission, to an organization li-
censee.

    (ee) (ff) ``Recognized greyhound owners' group'' means the duly recognized group
elected in accordance with rules and regulations of the commission by a majority of the
Kansas licensed greyhound owners at the racetrack facility voting in the election. The com-
mission may designate an organization such as the national greyhound association of Abilene,
Kansas, to conduct the election.

    (ff) (gg) ``Recognized horsemen's group'' means the duly recognized group, representing
the breeds of horses running at a racetrack facility, elected in accordance with rules and
regulations of the commission by a majority of the licensed owners and trainers at the
racetrack facility voting in the election. If the licensee does not have a recognized horsemen's
group, the commission shall designate as the recognized horsemen's group one that serves
another organization licensee, but not one that serves a fair association organization licensee.

    (gg) (hh) ``Simulcast'' means a live audio-visual broadcast of an actual horse or grey-
hound race at the time it is run.

    (hh) (ii) ``Takeout'' means the total amount of money withheld from each parimutuel
pool for the payment of purses, taxes and the share to be kept by the organization licensee.
Takeout does not include the breakage. The balance of each pool less the breakage is
distributed to the holders of winning parimutuel tickets.'';

    Also on page 1, in line 22, by striking ``Section 1.'' and inserting ``Sec. 2.'';

    By renumbering sections accordingly;

    On page 7, in line 3, by striking ``steward or''; in line 4, by striking ``steward or''; in line
5, by striking ``steward's or''; in line 6, by striking all after ``is''; in line 7, by striking all before
``a'' and inserting ``a licensed owner, owner-trainer or trainer of a greyhound that races at'';

    On page 13, in line 24, by striking `` and housing `` and inserting ``and housing'';

    On page 21, in line 16, by striking ``(k)'' and inserting ``(j)''; in line 22, by striking all after
the period; by striking all in lines 23 and 24; in line 25, by striking all before ``Of''; in line
26, by striking all after ``taxes''; in line 27, by striking all before ``shall'' and inserting ``, an
amount equal to a percentage, to be determined by the commission, of the gross sum
wagered on simulcast races''; in line 29, by striking ``purses for''; in line 32, by striking ``purses
for''; in line 35, by striking ``purses'' and inserting ``horse races and greyhound races''; in
line 39, by striking ``purses'' and inserting ``horse races and greyhound races''; in line 42,
following the period, by inserting ``That portion of simulcast purse money determined to be
used for horse purses shall be apportioned by the commission to the various horse race
meetings held in any calendar year based upon the number of live horse race dates com-
prising such horse race meetings in the preceding calendar year.''; by striking all in line 43;

    On page 22, by striking all in lines 1 through 5;

    By relettering subsections accordingly;

    Also on page 22, in line 6, by striking ``(k)'' and inserting ``(j)'';

    On page 24, by striking all in lines 13 through 30 and inserting:

    ``Sec. 8. K.S.A. 1997 Supp. 74-9804 is hereby amended to read as follows: 74-9804. (a)
(1) The governor shall appoint, subject to confirmation by the senate as provided by K.S.A.
75-4315b, and amendments thereto, an executive director of the state gaming agency, to
serve at the pleasure of the governor. Before appointing any person as executive director,
the governor shall cause the Kansas bureau of investigation to conduct a criminal history
record check and background investigation of the person.

    (2) The executive director shall: (A) Be in the unclassified service under the Kansas civil
service act; (B) devote full time to the executive director's assigned duties; (C) be a citizen
of the United States and an actual resident of Kansas during employment as executive
director; (D) not have been convicted of a felony under the laws of any state or of the United
States prior to or during employment; and (E) have familiarity with gaming industries suf-
ficient to fulfill the duties of the office of executive director.

    (3) The executive director shall: (A) Determine, subject to the approval of the Kansas
racing and gaming commission, the number and qualifications of employees necessary to
implement and enforce the provisions of tribal-state gaming compacts and the provisions of
the tribal gaming oversight act; (B) employ persons for those positions; and (C) perform
such other duties as required by tribal-state gaming compacts.

    (b) (1) The executive director may appoint a director of enforcement and compliance
to serve at the pleasure of the executive director. Before appointing any person as director
of enforcement and compliance, the executive director shall cause the Kansas bureau of
investigation to conduct a criminal history record check and background investigation of the
person.

    (2) The director of enforcement and compliance shall: (A) Be in the unclassified service
under the Kansas civil service act; (B) devote full time to the director's assigned duties; (C)
receive such compensation as determined by the executive director, subject to the limitations
of appropriations therefor; (D) be a citizen of the United States and an actual resident of
Kansas during employment as director of enforcement and compliance; (E) not have been
convicted of a felony under the laws of any state or of the United States prior to and during
employment as director of compliance; and (F) if vested with law enforcement powers, have
been a professional law enforcement officer with a minimum of five years' experience in
the field of law enforcement and at least a bachelor's degree in law enforcement adminis-
tration, law, criminology or a related science or, in lieu thereof, a minimum of 10 years'
experience in the field of law enforcement.

    (3) The director of enforcement and compliance shall: (A) Be vested with law enforce-
ment authority;
    (B) conduct investigations relating to compliance with the provisions of tribal-state gam-
ing compacts and the provisions of the tribal gaming oversight act;

    (B) (C) recommend proper compliance measures to tribal gaming commissions;

    (C) (D) train and supervise such personnel as employed by the executive director to
assist with such duties; and

    (D) (E) perform such other duties as directed by the executive director.

    (c) (1) The executive director may appoint compliance inspectors enforcement agents.
Before appointing any person as a compliance inspector enforcement agent, the executive
director shall cause the Kansas bureau of investigation to conduct a criminal history record
check and background investigation of the person.

    (2) Each compliance inspector enforcement agent shall: (A) Be vested with law enforce-
ment authority;
    (B) be in the classified service under the Kansas civil service act;

    (B) (C) not have been convicted of a felony under the laws of any state or of the United
States prior to or during employment as compliance inspector enforcement agent; and (C)
if vested with law enforcement powers,

    (D) be a professional law enforcement officer with a minimum of two years' experience
in the field of law enforcement or, in lieu thereof, a bachelor's degree from an accredited
university or college.

    (3) Compliance inspectors Enforcement agents shall: (A) Conduct investigations relating
to compliance with the provisions of tribal-state gaming compacts or the provisions of the
tribal gaming oversight act; and (B) perform such other duties as directed by the executive
director or the director of enforcement and compliance.

    Sec. 9. K.S.A. 1997 Supp. 74-9806 is hereby amended to read as follows: 74-9806. (a)
Employees of the state gaming agency designated by the executive director The director of
enforcement and compliance and all enforcement agents are hereby vested with the power
and authority of law enforcement officers in the execution of the duties imposed upon the
state gaming agency by the provisions of the tribal gaming oversight act and tribal-state
gaming compacts.
    (b) Employees designated pursuant to subsection (a) and shall have the authority to:

    (1) Make arrests, conduct searches and seizures and carry firearms while investigating
violations of this act and during routine conduct of their duties as determined by the ex-
ecutive director;

    (2) make arrests, conduct searches and seizures and generally enforce all criminal laws
of the state as violations of such laws are encountered by such employees during the routine
performance of their duties; and

    (3) issue notices to appear pursuant to K.S.A. 22-2408, and amendments thereto.

    (c) (b) No employee of the state gaming agency shall be certified to carry firearms under
the provisions of this section without having first successfully completed the firearms training
course or courses prescribed for law enforcement officers under subsection (a) of K.S.A.
74-5604a, and amendments thereto. The executive director may adopt rules and regulations
prescribing other training required for such employees.

    (d) (c) It shall be the duty of the Kansas bureau of investigation to conduct, or assist
compliance enforcement personnel of the state gaming agency and other law enforcement
agencies in conducting, investigations of violations of tribal-state gaming compacts, criminal
violations of the laws of this state at tribal gaming facilities, criminal violations of the tribal
gaming oversight act and other criminal activities related to tribal gaming. Such duty may
be performed independently of or in conjunction with employees of the state gaming agency
designated pursuant to this section or tribal gaming commission inspectors. Employees of
the state gaming agency shall report immediately any criminal violations of the tribal gaming
oversight act and any criminal activities or suspected criminal activities at tribal gaming
facilities to the Kansas bureau of investigation. Employees of the Kansas bureau of inves-
tigation shall report any violations or suspected violations of the tribal gaming oversight act
to the executive director or to employees of the state gaming agency designated pursuant
to this section.

    Sec. 10. K.S.A. 74-8809 and 74-8811 and K.S.A. 1997 Supp. 74-8802, 74-8802, as
amended by section 1 of 1998 House Bill No. 3028, 74-8802a, 74-8802b, 74-8810, 74-8813a,
74-8816, 74-8831, 74-8836, 74-9804 and 74-9806 are hereby repealed.'';

    By renumbering sections accordingly;

    In the title, by striking all in lines 16 through 19 and inserting:

    ``AN ACT concerning racing and gaming; concerning the regulation thereof; concerning
the powers and duties of certain officers and employees; amending K.S.A. 74-8809 and
74-8811 and K.S.A. 1997 Supp. 74-8802, 74-8810, 74-8816, 74-8831, 74-8836, 74-9804 and
74-9806 and repealing the existing sections; also repealing K.S.A. 1997 Supp. 74-8802, as
amended by section 1 of 1998 House Bill No. 3028, 74-8802a, 74-8802b and 74-8813a.'';

                                                                                        And your committee on conference recommends the adoption of this report.

                                                                                    Lana Oleen

                                                                                    Ben Vidricksen

                                                                                    Sherman Jones
 
                                                                                    Conferees on part of Senate

                                                                                    Garry Boston

                                                                                    Ralph M. Tanner

                                                                                    Ruby Gilbert
 
Conferees on part of House

 On motion of Rep. Boston, the conference committee report on HB 2510 was adopted.

 On roll call, the vote was: Yeas 63; Nays 57; Present but not voting: 1; Absent or not
voting: 3.

 Yeas: Adkins, Allen, Aurand, Ballard, Beggs, Benlon, Boston, Carmody, Compton, Cox,
Crow, Dean, Dillon, Empson, Feuerborn, Findley, Flaharty, Gilbert, Gilmore, Glasscock,
Grant, Gregory, Haley, Horst, Huff, Humerickhouse, Johnson, Johnston, Kirk, Phil Kline,
Kuether, Lane, Larkin, Mason, McCreary, Myers, Osborne, Palmer, E. Peterson, Phelps,
Pottorff, Ray, Reardon, Reinhardt, Ruff, Sawyer, Schwartz, Shriver, Shultz, Sloan, Stone,
Storm, Tanner, Toelkes, Tomlinson, Toplikar, Vining, Wagle, Weber, Wells, Welshimer,
Wempe, Wilk.

 Nays: Alldritt, Ballou, Burroughs, Campbell, Cook, Correll, Dahl, Dreher, Edmonds,
Faber, Farmer, Flora, Flower, Franklin, Freeborn, Garner, Hayzlett, Helgerson, Hender-
son, Henry, Holmes, Howell, Hutchins, Jennison, Kejr, Klein, Phill Kline, Krehbiel, Land-
wehr, M. Long, Mayans, Mays, McClure, McKechnie, McKinney, Minor, Mollenkamp,
Morrison, Neufeld, Nichols, Packer, Pauls, J. Peterson, Powell, Powers, Presta, Samuelson,
Shallenburger, Sharp, Shore, Showalter, Spangler, Swenson, Thimesch, Vickrey, Weiland,
Wilson.

 Present but not voting: P. Long.

 Absent or not voting: Geringer, O'Connor, O'Neal.





CONFERENCE COMMITTEE REPORT
    Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 234, submits the following report:

    The Senate accedes to all House amendments to the bill, and your committee on con-
ference further agrees to amend the bill, as printed with House Committee amendments,
as follows:

    On page 1, by striking all in lines 19 through 43;

    On page 2, by striking all in lines 1 through 22 and inserting the following:

    ``Section 1. K.S.A. 75-7b01 is hereby amended to read as follows: 75-7b01. As used in
this act:

    (a) ``Detective business'' means the furnishing of, making of or agreeing to make any
investigation for the purpose of obtaining information with reference to:

    (1) Crime or wrongs done or threatened against the United States or any state or ter-
ritory of the United States, or any political subdivision thereof when furnished or made by
persons other than law enforcement officers;

    (2) the identity, habits, conduct, business, occupation, honesty, integrity, credibility,
knowledge, trustworthiness, efficiency, loyalty, activity, movement, whereabouts, affiliations,
associations, transactions, acts, reputation or character of any person;

    (3) the location, disposition or recovery of lost or stolen property;

    (4) the cause or responsibility for fires, libels, losses, frauds, accidents or damage or
injury to persons or to property; or

    (5) securing evidence to be used before any court, board, officer or investigating com-
mittee.

    (b) ``Private detective'' means any person who, for any consideration whatsoever, en-
gages in detective business.

    (c) ``Private detective agency'' means a person who regularly employs any other person,
other than an organization, to engage in detective business.

    (d) ``Private patrol operator'' means a person who, for any consideration whatsoever,
agrees to furnish or furnishes a watchman, guard, patrolman or other person to protect
persons or property or to prevent the theft, unlawful taking, loss, embezzlement, misappro-
priation or concealment of any goods, wares, merchandise, money, bonds, stocks, notes,
documents, papers or property of any kind, or performs the service of such watchman,
guard, patrolman or other person for any such purposes.

    (e) ``Law enforcement officer'' means a law enforcement officer as defined by K.S.A.
21-3110, and amendments thereto.

    (f) ``Organization'' means a corporation, trust, estate, partnership, cooperative or asso-
ciation.

    (g) ``Person'' means an individual or organization.

    (h) ``Firearm permit'' means a permit for the limited authority to carry a firearm con-
cealed on or about the person by one licensed as a private detective.

    (i) ``Firearm'' means:

    (1) A pistol or revolver which is designed to be fired by the use of a single hand and
which is designed to fire or capable of firing fixed cartridge ammunition; or

    (2) any other weapon which will or is designed to expel a projectile by the action of an
explosive and which is designed to be fired by the use of a single hand.

    (j) ``Client'' means any person who engages the services of a private detective.

    (k) ``Dishonesty or fraud'' means, in addition to other acts not specifically enumerated
herein:
    (1) Knowingly making a false statement relating to evidence or information obtained in
the course of employment, or knowingly publishing a slander or a libel in the course of
business;
    (2) using illegal means in the collection or attempted collection of a debt or obligation;
    (3) manufacturing or producing any false evidence; and
    (4) acceptance of employment adverse to a client or former client relating to a matter
with respect to which the licensee has obtained confidential information by reason of or in
the course of the licensee's employment by such client or former client.

    Sec. 2. K.S.A. 75-7b03 is hereby amended to read as follows: 75-7b03. The following
persons shall not be deemed to be engaging in detective business:

    (a) A person employed exclusively and regularly by one employer in connection only
with the internal affairs or investigations of such employer and where there exists an em-
ployer-employee relationship;

    (b) any officer or employee of the United States, or of this state or a political subdivision
thereof while engaged in the performance of the officer's or employee's official duties;

    (c) a person engaged exclusively in the business of obtaining and furnishing information
as to the financial rating of persons except that this exemption does not include a person
preparing an investigative consumer report as defined by K.S.A. 50-702, and amendments
thereto;

    (d) a charitable philanthropic society or association duly incorporated under the laws of
this state which is organized and maintained for the public good and not for private profit;

    (e) an attorney performing duties as an attorney or a person employed exclusively and
regularly by an attorney or law firm performing duties exclusively on behalf of the attorney
or law firm;

    (f) a licensed collection agency or an employee thereof while acting within the scope of
employment, while making an investigation incidental to the business of the agency, includ-
ing an investigation of the location of a debtor or a debtor's property where the contract
with an assignor creditor is for the collection of claims owed or due or asserted to be owed
or due or the equivalent thereof;

    (g) admitted insurers, agents and insurance brokers licensed by the state, performing
duties in connection with insurance transacted by them;

    (h) the legal owner of personal property which has been sold under a conditional sales
agreement or a mortgagee under the terms of a chattel mortgage in connection with the
recovery of such personal property;

    (i) any bank subject to the jurisdiction of the state bank commissioner of the state of
Kansas or the comptroller of currency of the United States;

    (j) a person engaged solely in the business of securing information about persons or
property from public records;

    (k) an insurance adjuster which, for the purpose of this act, means any person who, for
any consideration whatsoever, adjusts or otherwise participates in the disposal of any claim
under or in connection with a policy of insurance or engages in soliciting insurance adjust-
ment business; or

    (l) a private patrol operator while actually engaged in providing private patrol services
on the property to which private patrol services are being provided; or
    (m) a person engaged in market research.

    Sec. 3. K.S.A. 75-7b04 is hereby amended to read as follows: 75-7b04. (a) Every person
desiring to be licensed in Kansas as a private detective or private detective agency shall
make application therefor to the attorney general. An application for a license under this
act shall be on a form prescribed by the attorney general and accompanied by the required
application fee. An application shall be verified and shall include:

    (1) The full name and business address of the applicant;

    (2) the name under which the applicant intends to do business;

    (3) a statement as to the general nature of the business in which the applicant intends
to engage;

    (4) a statement as to the classification or classifications under which the applicant desires
to be qualified;

    (5) if the applicant is an organization, the full name and residence address of each of
its partners, officers, directors or associates;

    (6) two recent photographs of the applicant taken within 30 days before the date of
application, of a type prescribed by the attorney general, and two classifiable sets of the
applicant's fingerprints one of which shall be submitted to the federal bureau of investigation
for a fingerprint check for any criminal history of the applicant;

    (7) a verified statement of the applicant's experience qualifications employment history;
and

    (8) such other information, evidence, statements or documents as may be required by
the attorney general.

    (b) If an applicant is a resident of this state, the application shall be approved, as to
each resident person signing the application, by five or more reputable citizens of the com-
munity in which the applicant resides or transacts business, or in which the applicant pro-
poses to own, conduct, manage or maintain the bureau, agency, subagency, office or branch
office for which the license is desired. If an applicant is not a resident of this state, the
application shall be approved, as to each nonresident person signing the application, by five
or more reputable citizens of the community in which the applicant resides and the certif-
icate of approval shall be verified and acknowledged by such nonresident citizens before an
officer authorized to take oaths and acknowledgment of deeds.
    Each citizen approving an application shall subscribe and affirm as true, under the pen-
alties of perjury, that:
    (1) The citizen has personally known the persons signing the application for a period of
at least five years prior to the filing of the application, except that the attorney general may
lessen such period if the person signing the application has been honorably discharged from
the military service of the United States within the six-year period immediately preceding
the date application is submitted;
    (2) the citizen has read such application and believes each of the statements made
therein to be true;
    (3) the persons signing the application are honest, of good character and competent and
not related or connected by blood or marriage to the citizen.

    (b) The application shall be accompanied by a certificate of reference signed by five or
more reputable persons who have known the applicant for a period of at least 5 years. The
certificate of reference shall be verified and acknowledged by such persons before an officer
authorized to take oaths and acknowledgment of deeds.
    Each person signing the certificate of reference shall subscribe and affirm as true, under
the penalties of perjury, that:
    (1) The person has known the applicant personally for a period of at least five years
prior to the filing of the application. The attorney general may lessen such period if the
applicant has been discharged honorably from the military service of the United States within
the six-year period immediately preceding the date the application is submitted;
    (2) the person has read such application and believes each of the statements made therein
to be true;
    (3) the applicant is honest, of good character and competent and not related or connected
by blood or marriage to such person.

    (c) Before an application for a license may be granted, the applicant or, if the applicant
is an organization, all of the officers, directors, partners or associates shall:

    (1) Be at least 21 years of age;

    (2) be a citizen of the United States;

    (3) be of good moral character; and

    (4) comply with such other qualifications as the attorney general adopts by rules and
regulations.

    (d) After a hearing conducted In accordance with the summary proceedings provisions
of the Kansas administrative procedure act, the attorney general may deny a license unless
the applicant makes a showing satisfactory to the attorney general that the applicant or, if
the applicant is an organization, that each of its officers, directors, partners or associates has
not if the applicant has:

    (1) Committed any act which, if committed by a licensee, would be grounds for the
suspension or revocation of a license under this act;

    (2) committed any act constituting dishonesty or fraud;

    (3) a bad moral character or a bad reputation for truth, honesty, and integrity;

    (4) been convicted of a felony or, within 10 years immediately prior to the date of
application, been convicted of any crime involving moral turpitude, dishonesty, vehicular
homicide, assault, battery, assault of a law enforcement officer, misdemeanor battery against
a law enforcement officer, criminal restraint, sexual battery, endangering a child, intimi-
dation of a witness or victim or illegally using, carrying, or possessing a dangerous weapon
within 10 years immediately prior to the date of application;

    (5) been refused a license under this act or had a license suspended or revoked in this
state or in any other jurisdiction or had a license censured, limited or conditioned two or
more times in this state or in any other jurisdiction;

    (6) been an officer, director, partner, or associate or manager of any person who has
been refused a license under this act or whose license has been suspended or revoked in
this state or in any other jurisdiction or had a license censured, limited or conditioned two
or more times in this state or in any other jurisdiction;

    (7) while unlicensed, committed or aided and abetted the commission of any act for
which a license is required by this act; or

    (8) knowingly made any false statement in the application.

    (e) The attorney general may charge a fee for initial application forms and materials in
an amount fixed by the attorney general pursuant to section 14, and amendments thereto.
Such fee shall be credited against the application fee of any person who subsequently submits
an application.

    Sec. 4. K.S.A. 75-7b05 is hereby amended to read as follows: 75-7b05. (a) Every ap-
plication hereunder for an initial or a renewal license which will be effective on and after
January 1, 1999, shall be accompanied by an annual a fee of $120, except that: in an amount
fixed by the attorney general pursuant to section 14, and amendments thereto. The appli-
cation fee for a license issued during calendar year 1998, shall not exceed $120.

    (a) If (b) In addition to the application fee imposed pursuant to subsection (a), if the
applicant is an organization and any of its officers, directors, partners or associates intends
to engage in the business of such organization as a private detective, such officer, director,
partner or associate shall make a separate application for a license and pay a fee of $18; in
an amount fixed by the attorney general pursuant to section 14, and amendments thereto.

    (b) if the applicant is an individual who submits a verified statement by a licensee that
the applicant is or will be employed by such licensee, the license fee for such applicant shall
be $18; or

    (c) If a license is issued for a period of less than one year two years, the fee fees imposed
pursuant to this section shall be prorated for the months, or fraction thereof, for which the
license is issued.

    Sec. 5. K.S.A. 75-7b06 is hereby amended to read as follows: 75-7b06. (a) The license,
when issued, shall be in such form as may be determined by the attorney general and shall
include the:

    (1) Name of the licensee;

    (2) name under which the licensee is to operate; and

    (3) number and date of the license.

    (b) The license at all times shall be posted in a conspicuous place in the principal place
of business of the licensee. Upon the issuance of a license, a pocket card of such size, design
and content as determined by the attorney general shall be issued without charge to each
licensee or, if the licensee is an organization, to each of its officers, directors, partners or
associates. Such card shall be evidence that the licensee is duly licensed pursuant to this
act. When any person licensee to whom a card is issued terminates such person's position,
office or association with the licensee licensee's activities as a private detective, or such
licensee's license has been suspended or revoked, the card shall be surrendered to the licensee
and, within five days thereafter after such termination, suspension or revocation, shall be
mailed or delivered by the licensee to the attorney general for cancellation. Within 30 days
after any change of address or of any change in its officers, directors, partners or associates,
a licensee shall notify the attorney general thereof. The principal place of business may be
at a residence or at a business address, but it shall be the place at which the licensee
maintains a permanent office.

    (c) Applications, on forms prescribed by the attorney general, shall be submitted by all
new officers or partners. The attorney general may suspend or revoke a license issued under
this act if the attorney general determines that, at the time such person became an officer
or partner of a licensee, such person did not meet the requirements of K.S.A. 75-7b04 and
amendments thereto.

    Sec. 6. K.S.A. 75-7b07 is hereby amended to read as follows: 75-7b07. (a) Any license
issued under this act shall expire on December 31 of the year of its issuance. On and after
January 1, 1999, any license issued under this act shall expire on December 31 of the year
following the year when issued and may be renewed every two years thereafter. Renewal of
any such license shall be made in the manner prescribed for obtaining an original license,
including payment of the appropriate fee required by K.S.A. 75-7b05, and amendments
thereto, except that:

    (1) The signing of the application by five or more citizens as required by K.S.A. 75-
7b04, and amendments thereto, shall not be required if such application for renewal is
verified and acknowledged by the applicant before an officer authorized to administer oaths;

    (2) the application upon renewal need only provide for renewal shall provide the infor-
mation required of original applicants if the information shown on the original application
or any renewal thereof on file with the attorney general is no longer accurate;

    (3) a new photograph shall be submitted with the application for renewal only if the
photograph on file with the attorney general has been on file more than two years; and

    (4) additional information may be required by rules and regulations adopted by the
attorney general.

    (b) A licensee shall at all times be legally responsible for the good conduct of each of
the licensee's employees or agents while engaged in the business of the licensee, and the
licensee is legally responsible for any acts committed by such licensee's employees or agents
which are in violation of this act.
    (c) A license issued under this act shall not be assignable.

    Sec. 7. K.S.A. 75-7b08 is hereby amended to read as follows: 75-7b08. (a) Any licensee
or individual who is an officer, director, partner or associate thereof shall divulge to the
attorney general, any law enforcement officer or county attorney, or his or her representa-
tive, any information he or she may acquire as to any criminal offense, but he or she shall
not divulge notify the appropriate law enforcement agency with jurisdiction over the matter
of any information the licensee or individual may acquire as to any criminal offense. The
licensee or individual shall not disclose to any other person, except as he or she the licensee
or individual may be required by law so to do, any information acquired by him or her the
licensee or individual except at the direction of the employer or client for whom the infor-
mation was obtained.

    (b) No licensee or individual who is an officer, director, partner, associate or employee
thereof shall:

    (1) Knowingly make any false report to his or her the licensee's or individual's employer
or client for whom information was being obtained;

    (2) cause any written report to be submitted to a client except by the licensee or a
designee of the licensee, and the person submitting the report shall exercise diligence in
ascertaining whether or not the facts and information in such report are true and correct;

    (3) furnish or perform any services on a contingent or percentage basis, or make or
enter into any agreement for furnishing services of any kind or character, by the terms or
conditions of which agreement the compensation to be paid for such services to the licensee
is partially or wholly contingent, or based upon a percentage of the amount of money or
property recovered, or dependent in any way upon the result achieved.;

    (4) use a badge in connection with the activities of the licensee's business other than a
firearm permit badge authorized by this act;

    (5) use a title, wear a uniform, use an insignia or an identification card or make any
statement with the intent to give an impression that he or she the licensee or individual is
connected in any way with the federal government, a state government or any political
subdivision of a state government.;

    (6) use an alias in connection with the activities of the licensee's business;

    (7) enter any private building or portion thereof without the consent of the owner or of
the person in legal possession thereof;

    (8) appear as an assignee party in any proceeding involving claim and delivery, replevin
or other possessory action, action to foreclose a chattel mortgage, mechanic's lien, materi-
alman's lien, or any other lien.;

    (9) permit an unlicensed employee or agent in his or her the employee's or agent's own
name to advertise, engage clients, furnish reports or present bills to clients, or in any manner
whatever conduct business for which a license is required under this act; and all or conduct
business of the licensee shall be conducted other than in the name of and under the control
of the licensee; or

    (10) manufacture or produce any false evidence.

    Sec. 8. K.S.A. 75-7b10 is hereby amended to read as follows: 75-7b10. Every An ad-
vertisement by a licensee soliciting or advertising business shall contain his or her name and
address as they appear in the records of the attorney general not contain any false, misleading
or deceptive information. A licensee shall not advertise or conduct business from any location
other than that shown on the records of the attorney general as his or her the licensee's
principal place of business unless he or she the licensee has received a branch office certif-
icate for such location after compliance with the provisions of this act and such additional
requirements necessary for the protection of the public as the attorney general may prescribe
by regulation rules and regulations. A licensee shall notify the attorney general in writing
within ten (10) 10 days after closing or changing the location of a branch office.

    Sec. 9. K.S.A. 75-7b11 is hereby amended to read as follows: 75-7b11. (a) Except as
provided in subsection (b), no license shall be issued under this act unless the applicant: (1)
Files with the attorney general a corporate surety bond executed by a company authorized
to do business in this state in the sum of $10,000, or an amount of $100,000 or more; (2)
files with the attorney general a certificate of insurance showing that the applicant has
general liability insurance providing coverage in an amount of $100,000 or more for bodily
injury or property damage caused by negligence, and errors or omissions, or intentional acts
(including assault and battery) and for personal injury caused by libel, slander, false arrest,
false imprisonment, invasion of privacy, wrongful entry, wrongful eviction or malicious pros-
ecution,; or (3) deposits $10,000 $100,000 or more in cash with the state treasurer. The
bond or return of the deposit shall be conditioned on the faithful and honest conduct of
business by such the applicant.

    (b) No applicant who is or will be employed by a licensee to engage in the business of
the licensee shall be required to obtain such the bond or certificate of insurance or make
such the deposit provided for by this section.

    (c) The attorney general shall approve each bond filed under this section as to form,
execution and sufficiency of the sureties. Such bond shall be taken in the name of the people
of this state and may be continuing in nature. The attorney general shall approve any cer-
tificate of insurance filed under this section as to form, execution and sufficiency of coverage
evidenced thereby.

    (d) Any person injured by any unlawful act of an applicant or an applicant's employees
or agents, whether licensed or not, may bring an action on the applicant's bond or deposit
in such person's own name to recover damages suffered by reason of such unlawful act.

    Sec. 10. K.S.A. 75-7b13 is hereby amended to read as follows: 75-7b13. (a) The attorney
general may censure, limit, condition, suspend or revoke a license issued under this act if,
after notice and opportunity for hearing in accordance with the provisions of the Kansas
administrative procedure act, the attorney general determines that the licensee or, if the
licensee is an organization, any of its officers, directors, partners or associates has:

    (1) Made any false statement or given any false information in connection with an ap-
plication for a license or a renewal or reinstatement thereof;

    (2) violated any provisions of this act;

    (3) violated any rule rules and regulations of the attorney general adopted pursuant to
the authority contained in this act;

    (4) been convicted of a felony, vehicular homicide, assault, battery, assault of a law
enforcement officer, misdemeanor battery against a law enforcement officer, criminal re-
straint, sexual battery, endangering a child, intimidation of a witness or victim or any crime
involving moral turpitude or illegally using, carrying, or possessing a dangerous weapon
subsequent to or within ten (10) years prior to the issuance of the license;

    (5) impersonated, or permitted or aided and abetted an employee to impersonate, a law
enforcement officer or employee of the United States of America, or of any state or political
subdivision thereof;

    (6) committed or permitted any employee to commit any act, while the license was
expired, which would be cause for the suspension or revocation of a license, or grounds for
the denial of an application for a license;

    (7) willfully failed or refused to render to a client services or a report as agreed between
the parties, and for which compensation has been paid or tendered in accordance with the
agreement of the parties;

    (8) committed assault, battery or kidnapping, or used force or violence on any person
without proper justification;

    (9) knowingly violated, or advised, encouraged or assisted the violation of, any court
order or injunction in the course of business as a licensee;

    (10) acted as a runner or capper for any attorney; or

    (11) used any letterhead, advertisement or other printed matter, or in any manner what-
ever represented that such person is an instrumentality of the federal government, a state
or any political subdivision thereof;
    (12) used false, misleading or deceptive information in any advertisement, solicitation
or contract for business;
    (13) has committed any act in the course of the licensee's business constituting dishonesty
or fraud;
    (14) misused a firearm permit badge; or

    (11) (15) committed any act which is a ground for denial of an application for a license
under this act.

    (b) The record of conviction, or a certified copy thereof, shall be conclusive evidence
of such conviction as that term is used in this section or in K.S.A. 75-7b04, and amendments
thereto, and a plea or verdict of guilty or a conviction following a plea of nolo contendere is
deemed to be a conviction within the meaning thereof.

    (c) Upon final disposition of the proceedings for a violation relating to the misuse of a
firearm permit badge, the attorney general may bring an action for violation of K.S.A. 21-
3824 or K.S.A. 21-3825, and amendments thereto.

    Sec. 11. K.S.A. 75-7b15 is hereby amended to read as follows: 75-7b15. (a) Each private
detective or detective agency operating as provided in this act, shall be required to keep a
complete record of the business transactions of such detective or detective agency, and shall
retain such records for at least three years.
    (b) Upon the service of a subpoena order of issued by the attorney general, or court
order of a court of competent jurisdiction which is based on the complaint, supported by
oath or affirmation and particularly describing the records and reports, any licensed private
detective who is the owner, partner, director, corporate officer or custodian of records of
business transactions shall give free and full opportunity to inspect the same and to inspect
reports made; but. Any information obtained by the attorney general shall be kept confi-
dential, except as may be necessary to commence and prosecute any legal proceedings.
When any detective or detective agency requires any report of an agent or employee to be
made verbally, a digest shall be made of such verbal report and this digest, together with
the written reports, shall be kept on file in the office of the private detective or detective
agency. The subpoenas issued by the attorney general to private detective licensees shall
comply with any confidentiality standards or legal limitations imposed by privacy acts, fair
credit reporting acts, polygraph acts, judicially-recognized privileged communications and
the bill of rights of both the United States and Kansas constitutions.

    (b) (c) For the purpose of enforcing the provisions of this act, and in making investi-
gations relating to any violation thereof or to the character, competency and integrity of the
applicants or licensees hereunder, and for the purpose of investigating the business, business
practices and business methods of any applicant or licensee, or of the officers, directors,
partners or associates thereof, the attorney general shall have the limited power to subpoena
as heretofore defined, and bring before him or her the attorney general any person in this
state and require the production of any books, records or papers which he or she the attorney
general deems relevant to the inquiry.

    (d) The attorney general also may administer an oath to and take the testimony of any
person, or cause his or her such person's deposition to be taken, except that any applicant
or licensee or officer, director, partner or associate thereof shall not be entitled to any fees
or mileage.

    (e) A subpoena issued under this section shall be governed by the code of civil proce-
dure. Any person duly subpoenaed, who fails to obey such subpoena without reasonable
cause or objection or without such cause refuses to be examined or to answer any legal or
pertinent question as to the character or qualification of such applicant or licensee or such
applicant's or licensee's business, business practices and methods or such violations, upon
conviction by a court of competent jurisdiction shall be guilty of a class A nonperson mis-
demeanor.

    (f) The testimony of witnesses in any investigative proceeding shall be under oath, and
willful false swearing in any such proceeding shall be perjury.

    Sec. 12. K.S.A. 75-7b17 is hereby amended to read as follows: 75-7b17. (a) No licensee
may carry a firearm concealed on or about the licensee's person unless the licensee obtains
a permit therefor, upon application to the attorney general. No permit shall be issued to
any licensee unless such licensee:

    (1) Demonstrates to the attorney general the need to carry a firearm in order to protect
the licensee's life or property or to protect the life or property of a client of licensee and
submits such proof as required by the attorney general to establish the necessity for the
issuance of a firearm permit; and

    (2) has received training in the handling of firearms and the lawful use of force from a
trainer certified pursuant to K.S.A. 75-7b20 75-7b21, and amendments thereto, and submits
such proof as required by the attorney general to show satisfactory completion of such
training.

    (b) An application for a firearm permit which will be effective on and after January 1,
1999, by a licensee shall be made in the manner and form prescribed by the attorney general
and shall be accompanied by a fee of $10. Each such in an amount fixed by the attorney
general pursuant to section 14, and amendments thereto. The application fee for a firearm
permit issued during calendar year 1998, shall not exceed $10. Such application shall be
made a part of and supplemental to such licensee's application for a license under this act.
The application shall contain:

    (1) The applicant's name and business and residence addresses;

    (2) the make or manufacturer's name, model, serial number, caliber, gauge and any
other identifying information concerning the firearm or firearms to be carried by the ap-
plicant;

    (3) a full set of the applicant's fingerprints;

    (4) a color photograph of the applicant taken within 30 days prior to date of application
and suitable for identification purposes;

    (5) such other information as deemed necessary by the attorney general.

    (c) (1) If the attorney general is satisfied that it is necessary for an applicant under this
section to carry a firearm, the attorney general shall issue to such licensee a firearm permit
identification card, the form of which shall be approved by the attorney general. Such card
shall bear the licensee's color photograph, thumb prints and signature and a description of
the firearm or firearms to be carried. Such permit shall be valid only for the calendar year
in which it is issued, and the The licensee shall have such permit in the licensee's possession
when carrying a firearm. Identification cards and firearm permits shall be numbered con-
secutively, and the attorney general shall maintain a current file of all valid firearm permits.

    (2) For the purpose of safety and emergency identification, licensees issued a firearm
permit under this act to carry a concealed firearm may carry a firearm permit badge. The
badge shall be carried in such a manner that at all times when the badge is visible the private
detective's firearm permit identification card issued pursuant to paragraph (1) of this sub-
section also shall be visible. The attorney general shall determine the size, design and other
specifications of the badge. The words ``licensed private detective'' shall be stated clearly on
the face of the badge. The cost of the badge shall be borne by the licensee. Whenever any
licensee terminates such licensee's activities as a private detective, or such licensee's license
has been suspended or revoked, such badge shall be surrendered within five days following
such termination, suspension or revocation to the attorney general for cancellation. Every
licensee possessing a valid firearm permit badge shall report to the attorney general any loss
of the badge within 72 hours of the discovery of the loss.

    (d) Any licensee granted a firearm permit must shall present the permit identification
card and firearm permit badge upon request by a proper authority, including private persons
upon private property law enforcement officer acting within the officer's jurisdictional au-
thority, or by a private person upon private property if the person owns or has legal control
of the private property, to demonstrate the licensee's permit to carry a firearm. Every
licensee possessing a valid firearm permit shall report to the attorney general any change
of employment status, change of firearm or firearms to be carried, loss of identification card
or change of personal or business address. Every licensee who discharges a firearm for any
reason other than test firing, firearm training or target practice shall report the discharge
to the attorney general within 24 hours, together with a written report giving full particulars
and reason for such discharge.

    (e) The attorney general may suspend or shall revoke any firearm permit for cause if
the licensee's private detective license has been suspended or revoked. The attorney general
may suspend or revoke any firearm permit if the licensee has used a firearm in a manner
inconsistent with the lawful use of force or if the licensee can no longer demonstrate a need
to carry a firearm, pursuant to subsection (a)(1). An order of suspension or revocation, and
hearing thereon, shall be subject to the provisions of the Kansas administrative procedure
act. The attorney general may shall recall any suspended or revoked firearm permit identi-
fication card when in the attorney general's opinion the holder thereof no longer requires
such firearm permit.

    (f) A licensee to whom a firearm permit is granted hereunder under this section shall
be deemed to have no greater justification in the use of force than a private person as
prescribed by the Kansas criminal code, and nothing. Nothing in this act shall be construed
as limiting the civil liability of any such licensee with respect to the use of force.

    (g) No firearm permit shall be issued to any:

    (1) Organization;

    (2) individual who has been declared, by any court of competent jurisdiction, to be
incapacitated or mentally ill and has not been restored to capacity or mental health; or

    (3) individual who suffers from alcohol or narcotics addiction or dependence.

    (h) A firearm permit issued under this act shall expire on December 31 of the year of
its issuance, except that on and after January 1, 1999, a firearm permit issued under this
act shall expire on December 31 of the year following the year when issued. Renewal of any
such firearm permit shall be made in a form and manner prescribed by the attorney general
and subject to such conditions as required by rules and regulations adopted by the attorney
general. Renewal of a firearm permit shall be based on a demonstrated continuing need to
carry a firearm in accordance with subsection (a)(1).

    Sec. 13. K.S.A. 75-7b21 is hereby amended to read as follows: 75-7b21. (a) The attorney
general shall certify persons who are qualified to train private detectives in the handling of
firearms and the lawful use of force.

    (b) In order to be certified as a trainer under this section, a trainer or, if a trainer is an
organization, each officer, director, partner or associate an applicant shall:

    (1) Is Be 21 or more years of age;

    (2) has have a minimum of one-year supervisory experience with a private detective
agency, a private patrol operator, a proprietary investigative or security organization or any
federal, United States military, state, county or city law enforcement agency; and

    (3) is be personally qualified to train private detectives in the handling of firearms and
the lawful use of force.; and
    (4) not have been convicted of a felony or, within 10 years immediately prior to the date
of application, been convicted of a misdemeanor. If the applicant is not licensed as a private
detective, the applicant shall submit two classifiable sets of the applicant's fingerprints one
of which shall be submitted to the federal bureau of investigation for a fingerprint check for
any criminal history of the applicant.

    (c) Persons wishing to become certified trainers shall make application to the attorney
general on a form prescribed by the attorney general and. Applications for a firearm training
certificate which will be effective on and after January 1, 1999, shall be accompanied by a
fee of $25 in an amount fixed by the attorney general pursuant to section 14, and amend-
ments thereto. The fee for a firearm training certificate issued during calendar year 1998,
shall not exceed $25. The application shall contain a statement of the plan of operation of
for the training offered by the applicant and the materials and aids to be used and any other
information required by the attorney general.

    (d) A certificate shall be granted to a trainer if the attorney general finds that the ap-
plicant or, if the applicant is an organization, each officer, director, partner or associate:

    (1) Meets the requirements of subsection (b);

    (2) is a person of good character and reputation;

    (3) has sufficient knowledge of private detective business, firearms training and the
lawful use of force to be a suitable person to train private detectives in the handling of
firearms and the lawful use of force;

    (4) has supplied all required information to the attorney general; and

    (5) has paid the required fee.

    (e) The certificate issued pursuant to this section shall expire on December 31 of the
year in which following the year when issued and shall be renewable annually biennially
upon application and payment of an annual fee of $25 a fee in an amount fixed by the
attorney general pursuant to section 14, and amendments thereto.

    New Sec. 14. (a) In each fiscal year, the attorney general shall determine the amount
of funds which will be required during the next ensuing fiscal year to properly administer
the laws which the attorney general is directed to enforce and administer relating to the
licensure and regulation of private detectives and private detective agencies. The attorney
general, by the adoption of rules and regulations, shall fix fees in accordance with this section
in such reasonable sums as may be necessary for such purposes.

    (b) After fixing such fees, the attorney general may charge and collect the fees, in ad-
vance for the following purposes, subject to the following limitations:


For initial application forms and materials, not to exceed $ 15

For application for licensure, not to exceed 250

For application by an officer, director, partner or associate of an organi-zation, if required to be licensed pursuant to K.S.A. 75-7b05, andamendments thereto, not to exceed 100

For renewal of license, not to exceed 250 175

For renewal of license of an officer, director, partner or associate of anorganization, if required to be licensed by K.S.A. 75-7b05, and amend-ments thereto, not to exceed 100

For application for a firearm permit, not to exceed 50

For renewal of a firearm permit, not to exceed 50

For application for a firearm trainers permit, not to exceed 100

For renewal of a firearm trainers permit, not to exceed 100
    (c) A duplicate license shall be issued upon the filing of a statement covering the loss
of the license and the payment of a fee of $5 for the issuance of a duplicate license. Each
duplicate license shall have the word ``duplicate'' stamped across the face thereof and shall
bear the same number as the original.

    New Sec. 15. The attorney general shall remit all moneys received from fees or charges
imposed pursuant to this act to the state treasurer at least monthly. Upon receipt, the entire
amount shall be deposited in the state treasury and credited to the private detective fee
fund, which is hereby created. Moneys in the private detective fee fund shall be used solely
for the purpose of administering and implementing K.S.A. 75-7b01 through 75-7b21, and
amendments thereto, and any other law relating to the licensure and regulation of private
detectives and private detective agencies. All expenditures from such 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 attorney general or by a person or persons
designated by the attorney general.

    Sec. 16. K.S.A. 75-7b01, 75-7b03, 75-7b04, 75-7b05, 75-7b06, 75-7b07, 75-7b08, 75-
7b10, 75-7b11, 75-7b13, 75-7b14, 75-7b15, 75-7b16, 75-7b17 and 75-7b21 are hereby re-
pealed.

    Sec. 17. This act shall take effect and be in force from and after its publication in the
statute book.'';

    In the title, by striking all in lines 15 and 16 and inserting the following:

    ``AN ACT concerning licensure and regulation of private detectives and private detective
agencies; amending K.S.A. 75-7b01, 75-7b03, 75-7b04, 75-7b05, 75-7b06, 75-7b07, 7b-
7b08, 75-7b10, 75-7b11, 75-7b13, 75-7b15, 75-7b17 and 75-7b21 and repealing the existing
sections; also repealing K.S.A. 75-7b14 and 75-7b16.'';

                                                                                        And your committee on conference recommends the adoption of this report.

                                                                                    Garry Boston

                                                                                    Ralph M. Tanner

                                                                                    Ruby Gilbert
 
                                                                                    Conferees on part of House

                                                                                    Lana Oleen

                                                                                    Sherman Jones

                                                                                    Laurie Bleeker
 
Conferees on part of Senate

 On motion of Rep. Vickrey, the conference committee report on SB 234 was adopted.

 On roll call, the vote was: Yeas 96; Nays 26; Present but not voting: 0; Absent or not
voting: 2.

 Yeas: Alldritt, Allen, Aurand, Ballard, Ballou, Beggs, Boston, Burroughs, Campbell, Car-
mody, Compton, Cook, Cox, Dahl, Dean, Dreher, Empson, Faber, Farmer, Flaharty,
Flower, Franklin, Freeborn, Gilbert, Gilmore, Glasscock, Grant, Gregory, Haley, Hayzlett,
Helgerson, Holmes, Horst, Howell, Huff, Humerickhouse, Hutchins, Jennison, Johnson,
Johnston, Kejr, Kirk, Klein, Phil Kline, Phill Kline, Landwehr, Lane, M. Long, P. Long,
Mason, Mays, McClure, McCreary, McKinney, Minor, Mollenkamp, Morrison, Myers, Neu-
feld, O'Connor, Osborne, Palmer, Pauls, E. Peterson, Pottorff, Powell, Powers, Presta, Ray,
Reinhardt, Ruff, Samuelson, Sawyer, Schwartz, Sharp, Shore, Showalter, Shriver, Shultz,
Sloan, Stone, Storm, Swenson, Tanner, Thimesch, Toelkes, Tomlinson, Toplikar, Vickrey,
Vining, Wagle, Wells, Welshimer, Wempe, Wilk, Wilson.

 Nays: Adkins, Benlon, Correll, Crow, Dillon, Edmonds, Feuerborn, Findley, Flora, Gar-
ner, Henderson, Henry, Krehbiel, Kuether, Larkin, Mayans, McKechnie, Nichols, Packer,
J. Peterson, Phelps, Reardon, Shallenburger, Spangler, Weber, Weiland.

 Present but not voting: None.

 Absent or not voting: Geringer, O'Neal.

INTRODUCTION OF ORIGINAL MOTIONS
 On motion of Rep. Jennison, pursuant to subsection (k) of Joint Rule 4 of the Joint Rules
of the Senate and House of Representatives, the rules were suspended for the purpose of
considering SB 11; Sub. SB 675.

 Pursuant to Joint Rule 3 (f), Rep. Jennison moved that the rules be suspended and that
no copies be printed for distribution of the conference committee report on SB 11. The
motion prevailed.





CONFERENCE COMMITTEE REPORT
    Mr. President and Mr. Speaker: Your committee on conference on House amend-
ments to SB 11, submits the following report:

    The Senate accedes to all House amendments to the bill, and your committee on con-
ference further agrees to amend the bill, as printed with House Committee of the Whole
amendments, as follows:

    On page 1, by striking all in lines 32 through 43;

    By striking all on pages 2 through 74;

    On page 75, by striking all in lines 1 through 7 and inserting the following:

    ``Section 1. K.S.A. 1997 Supp. 20-2601, as amended by section 15 of 1998 Senate Bill
No. 382, is hereby amended to read as follows: 20-2601. As used in K.S.A. 20-2601 et seq.
and amendments thereto, unless the context otherwise requires:

    (a) ``Fund'' means the Kansas public employees retirement fund created by K.S.A. 74-
4921 and amendments thereto;

    (b) ``retirement system for judges'' means the system provided for in the acts contained
in article 26 of chapter 20 of the Kansas Statutes Annotated and any acts amendatory thereof
or supplemental thereto;

    (c) ``judge'' means any duly elected or appointed justice of the supreme court, judge of
the court of appeals or judge of any district court of Kansas, who serves in such capacity on
and after the effective date of this act and commencing with the first day of the first payroll
period of the fiscal year ending June 30, 1994, any district magistrate judge who makes an
election as provided in K.S.A. 20-2620 and amendments thereto or who is elected or ap-
pointed on or after July 1, 1993;

    (d) ``member'' means a judge who is making the required contributions to the fund, or
any former judge who has made the required contributions to the fund and has not received
a refund of the judge's accumulated contributions;

    (e) ``prior service'' means all the periods of time any judge has served in such capacity
prior to the effective date of this act except that district magistrate judges who have service
credit under the Kansas public employees retirement system must make application to the
board and, subject to the provisions of section 83 and amendments thereto, make payment
as required by the board to transfer service credit from the Kansas public employees re-
tirement system to the retirement system for judges;

    (f) ``current service'' means the period of service any judge serves in such capacity from
and after the effective date of this act;

    (g) ``military service'' means service of any judge for which retirement benefit credit
must be given as provided in the uniformed services employment and reemployment rights
act of 1994, as in effect on July 1, 1998;

    (h) ``total years of service'' means the total number of years served as a judge, including
prior service, military service and current service as defined by this section, computed to
the nearest quarter;

    (i) ``salary'' means the statutory salary of a judge;

    (j) ``final average salary'' means that determined as provided in subsection (b) of K.S.A.
20-2610 and amendments thereto;

    (k) ``beneficiary'' means any natural person or persons or estate designated by a judge
in the latest designation of beneficiary received in the retirement system office to receive
any benefits as provided for by this act. Except as provided in subsection (n), if there is no
named beneficiary living at the time of the judge's death, any benefits provided for by this
act shall be paid to: (1) The judge's surviving spouse; (2) the judge's dependent child or
children; (3) the judge's dependent parent or parents; (4) the judge's nondependent child
or children; (5) the judge's nondependent parent or parents; or (6) the estate of the deceased
member; in the order of preference as specified in this subsection. Any payment made to
a named beneficiary shall be a full discharge and release to the system from any further
claims. Any payment made to a beneficiary as provided in clauses (1), (2), (3), (4), (5) or
(6) of this subsection, as determined by the board, shall be a full discharge and release to
the system from any further claims. Whenever any payment is payable to more than one
beneficiary such payment shall be made to such beneficiaries jointly. Any benefits payable
to a beneficiary or beneficiaries who are minor children or incompetent persons shall be
made in the name of the beneficiary or beneficiaries and delivered to the lawfully appointed
conservator of such beneficiaries who was nominated by will or as otherwise provided by
law, except that in those cases where the benefit involves only the payment of the judge's
accumulated contributions with interest as provided by this act in an amount not to exceed
$500, the board is hereby authorized in its discretion without the appointment of a conser-
vator or the giving of a bond to pay such amount as is due to the minor or minors themselves,
any payment so made shall be a full discharge and release to the system from any further
claims. Designations of beneficiaries by a member who is a member of more than one
retirement system made on or after July 1, 1987, shall be the basis of any benefits payable
under all systems unless otherwise provided by law;

    (l) ``annuity'' means a series of equal monthly payments, payable at the end of each
calendar month during the life of a retired judge, of which payments the first payment shall
be made as of the end of the calendar month in which such annuity was awarded and the
last payment shall be at the end of the calendar month in which such judge dies. The first
payment shall include all amounts accrued since the effective date of the award of annuities,
including a pro rata portion of the monthly amount of any fraction of a month elapsing
between the effective date of such annuity and the end of the calendar month in which such
annuity began;

    (m) ``board'' means the board of trustees of the Kansas public employees retirement
system;

    (n) ``trust'' means an express trust created by any trust instrument, including a will, and
designated by a member to receive benefits and other amounts payable under K.S.A. 20-
2607, 20-2610a and 20-2612, and amendments thereto, instead of a beneficiary. A desig-
nation of a trust shall be filed with the board. If there is a designated trust at the time of
the member's death, all benefits and other amounts payable under K.S.A. 20-2607, 20-2610a
and 20-2612, and amendments thereto, shall be paid to the trust instead of the member's
beneficiary. If no will is admitted to probate within six months after the death of the member
or no trustee qualifies within such six months or if the designated trust fails, for any reason
whatsoever, any benefits and other amounts payable under K.S.A. 20-2607, 20-2610a and
20-2612, and amendments thereto, shall be paid to the member's beneficiary and any pay-
ments so made shall be a full discharge and release to the retirement system for judges from
any further claims;

    (o) ``accumulated contributions'' means the sum of all contributions by a member to
the retirement system for judges which are credited to the member's account, with interest
allowed thereon after June 30, 1982;

    (p) ``federal internal revenue code'' means the federal internal revenue code of 1954 or
1986, as in effect on July 1, 1998, and as applicable to a governmental plan; and

    (q) except as otherwise provided in K.S.A. 20-2601 et seq. and amendments thereto,
words and phrases used in K.S.A. 20-2601 et seq. and amendments thereto shall have the
same meanings ascribed to them as are defined in K.S.A. 74-4902 and amendments thereto.

    Sec. 2. K.S.A. 20-2601a is hereby amended to read as follows: 20-2601a. (a) On and
after July 1, 1975, the Kansas judges retirement board established pursuant to K.S.A. 20-
2604 and amendments thereto shall be and is hereby abolished, and on said such date, except
as otherwise provided in this act, all of the powers, duties and functions of said Kansas
judges retirement board, whether in its capacity as that board pursuant to K.S.A. 20-2604
and amendments thereto or in its capacity as the Kansas official court reporters retirement
board pursuant to K.S.A. 20-2704, shall be and are hereby transferred to and conferred and
imposed upon the board of trustees of the Kansas public employees retirement system.

    (b) Except as otherwise provided in this act, the board of trustees of the Kansas public
employees retirement system shall be the successor in every way to the powers, duties and
functions of the Kansas judges retirement board, whether in its capacity as that board pur-
suant to K.S.A. 20-2604 and amendments thereto or in its capacity as the Kansas official
court reporters retirement board pursuant to K.S.A. 20-2704, in which the same were vested
prior to July 1, 1975. Every act performed in the exercise of such powers, duties and func-
tions by or under the authority of the board of trustees of the Kansas public employees
retirement system shall be deemed to have the same force and effect as if performed by
the Kansas judges retirement board in which such powers, duties and functions were vested
prior to July 1, 1975.

    (c) On and after July 1, 1975, whenever the Kansas judges retirement board, or words
of like effect, is referred to or designated by a statute or contract or other document, such
reference or designation shall be deemed to apply to the board of trustees of the Kansas
public employees retirement system.

    (d) On and after July 1, 1975, whenever the Kansas official court reporters retirement
board, or words of like effect, is referred to or designated by a statute or contract or other
document, such reference or designation shall be deemed to apply to the board of trustees
of the Kansas public employees retirement system.

    (e) The board of trustees of the Kansas public employees retirement system shall adopt
rules and regulations necessary for the administration of the retirement system for judges
and for the transaction of business consistent with law. All rules or regulations of the Kansas
judges retirement board in existence on July 1, 1975, whether adopted when acting as that
board pursuant to K.S.A. 20-2604 and amendments thereto or when acting as the Kansas
official court reporters retirement board pursuant to K.S.A. 20-2704, shall continue in force
and effect and shall be deemed to be duly adopted rules or regulations of the board of
trustees of the Kansas public employees retirement system, until revised, amended, revoked
or nullified pursuant to law.

    (f) All decisions and determinations of the Kansas judges retirement board in effect on
July 1, 1975, whether made when acting as that board pursuant to K.S.A. 20-2604 and
amendments thereto or when acting as the Kansas official court reporters retirement board
pursuant to K.S.A. 20-2704, shall continue in force and effect and shall be deemed to be
decisions and determinations of the board of trustees of the Kansas public employees re-
tirement system, until revised, amended, revoked or nullified pursuant to law.

    Sec. 3. K.S.A. 20-2606, as amended by section 17 of 1998 Senate Bill No. 382, is hereby
amended to read as follows: 20-2606. (a) Any judge whose service is terminated prior to
retirement, for any cause other than death, may, upon written request to the board and
after 30 days after such termination, may have returned the total amount of accumulated
contributions which the judge has made to the fund after the retirement system for judges
has a reasonable time to process the application for withdrawal. The return of accumulated
contributions to a judge shall preclude that judge from any benefits under the retirement
system for judges unless and until that judge again serves in such capacity.

    (b) Any incumbent judge over 70 years of age with a total service of at least eight years
at the time the judge's present term of office expires, or at the time of retirement if the
judge retires before the end of the judge's present term, shall receive retirement annuities
as provided in K.S.A. 20-2608, 20-2609 and 20-2610, and any amendments thereto, unless
the judge requests the return of accumulated contributions under this section.

    (c) In case any judge, who has had such judge's accumulated contributions returned
under this section, serves again in such capacity, such judge may return, subject to the
provisions of section 83 and amendments thereto, the amount refunded under this section
without interest or penalty and regain such judge's original status under the retirement
system for judges.

    (d) Subject to the provisions of section 83 and amendments thereto, any member of the
retirement system for judges who was previously a member of the Kansas public employees
retirement system or the Kansas police and firemen's retirement system and who forfeited
service credit under either of those systems by reason of termination of employment and
withdrawal of their contributions to that system, may elect to purchase service credit for
the previously forfeited service credit by means of having employee contributions as pro-
vided in K.S.A. 20-2603 and amendments thereto deducted from such judge's compensation
at an additional rate of contribution, based upon such judge's attained age at the time of
purchase and using actuarial assumptions and tables in use by the retirement system at such
time of purchase for such periods of service. Such additional rate of contribution shall com-
mence at the beginning of the quarter following such election and shall remain in effect until
all of the full quarters of such service have been purchased. Such member may purchase
such service by means of a single lump-sum payment and in lieu of employee contributions
as provided in this subsection. Such service shall be recredited to that system. The amount
of the lump-sum payment shall be determined by the actuary using the member's then
current annual rate of compensation and, the actuarial assumptions and tables then currently
in use by that retirement system and the judge's attained age.

    Sec. 4. K.S.A. 20-2609 is hereby amended to read as follows: 20-2609. (a) Any judge
who has become permanently physically or mentally disabled and who is not entitled to
retire under K.S.A. 20-2608 and amendments thereto may, upon being found so disabled
by the supreme court, retire under this section, and upon such retirement such judge shall
be entitled to receive an annuity, each monthly payment of which shall be in an amount
equal to 3.5% of the final average salary of the judge, determined as provided in subsection
(b) of K.S.A. 20-2610 and amendments thereto, multiplied by the number of total years of
service, but for any judge who becomes disabled as provided in this section on or after July
1, 1998, such monthly benefits shall be at least 25% 50% but shall not exceed 70% of the
final average salary of the judge, determined as provided in subsection (b) of K.S.A. 20-
2610 and amendments thereto.

    (b) Any judge, or the conservator of any judge, desiring to retire under the provisions
of this section shall file an application for such retirement with the clerk of the supreme
court, which application shall be in such form and contain such information as the supreme
court shall require. The court may require such judge to be examined by a physician ap-
pointed by the court and may require such other evidence and proof of disability as it deems
necessary to reach a determination as to whether such judge is so permanently disabled. If
the supreme court shall determine that any such judge is so permanently disabled it shall
promptly notify the board and thereupon such judge shall be placed on retirement by the
board and monthly receive the retirement annuity as provided in this section.

    (c) Any judge receiving an annuity under the provisions of this section shall be consid-
ered an active judge for the purposes of K.S.A. 20-2608 and amendments thereto and shall,
upon reaching age 65 or upon making application for retirement, have such judge's retire-
ment under this section terminated and such judge shall be placed on retirement under the
provisions of K.S.A. 20-2608 and amendments thereto.

    (d) In the event that a judge eligible for a disability annuity authorized by this section
shall be disabled for a period of five years or more immediately preceding retirement, such
judge's final average salary shall be adjusted upon retirement by the actuarial salary as-
sumption rates in existence during such period of disability. Effective July 1, 1993, such
judge's final average salary shall be adjusted upon retirement by 5% for each year of disability
after July 1, 1993, but before July 1, 1998. Effective July 1, 1998, such judge's final average
salary shall be adjusted upon retirement by an amount equal to the lesser of: (1) The
percentage increase in the consumer price index for all urban consumers as published by
the bureau of labor statistics of the United States department of labor minus 1%; or (2) four
percent per annum, measured from the month the disability occurs to the month that is two
months prior to the month of retirement, for each year of disability after July 1, 1998.

    (e) The provisions of law in effect on the retirement date of a judge under the retirement
system for judges shall govern the retirement benefit payable to the judge, any joint annu-
itant and any beneficiary.

    Sec. 5. K.S.A. 20-2610 is hereby amended to read as follows: 20-2610. (a) (1) A judge
who retires under K.S.A. 20-2608, and amendments thereto, shall be entitled to receive an
annual annuity payable in monthly amounts subject to subsection (b), each monthly payment
such annual annuity of which shall be in an amount equal to the total of 5% of the final
average salary of the judge, determined as provided in subsection (b), multiplied by the
number of the judge's years of service up to 10 years, and 3.5% of the final average salary
of the judge, determined as provided in subsection (b), multiplied by the number of the
judge's years of service in excess of 10 years, but such monthly benefits annual annuity shall
not exceed 70% of the final average salary of such judge, determined as provided in sub-
section (b). A judge who retires under K.S.A. 20-2608 and amendments thereto, and who
became a member of the system after June 30, 1987, shall be entitled to receive an annual
annuity payable in monthly amounts subject to subsection (b), each monthly payment such
annual amount of which shall be in an amount equal to the total of 3.5% of the final average
salary of the judge, determined as provided in subsection (b), multiplied by the number of
the judge's years of service, but such monthly benefits annual annuity shall not exceed 70%
of the final average salary of the judge, determined as provided in subsection (b).

    (2) For purposes of this subsection, the date of membership for a district magistrate
judge who became a member of the system as provided by K.S.A. 20-2620 and amendments
thereto and who purchased service as provided in subsection (c) of K.S.A. 20-2620 and
amendments thereto shall be the day such district magistrate judge became a district mag-
istrate judge and if such district magistrate judge's membership date as determined in this
subsection is earlier than July 1, 1987, such district magistrate judge shall be entitled to the
5% of final average salary calculation for up to 10 years of service as provided in this
subsection. Any additional cost associated with the provisions of this subsection shall be paid
by such district magistrate judge by means of a single lump-sum payment or equal annual
payments for not to exceed five years. The lump-sum or annual payments shall be determined
by the system's actuary by using the member's final average salary at the time of application,
actuarial assumptions and tables currently in use by the system and the member's attained
age. No participating employer shall pay all or any part of any cost associated with the
provisions of this subsection.

    (b) For any judge who retires under K.S.A. 20-2608 or 20-2609, and amendments
thereto, on or after July 1, 1975, the annuity shall be based on the final average salary of
such judge as provided in this subsection. The final average salary of a judge who becomes
permanently physically or mentally disabled and who is retired under K.S.A. 20-2608 or 20-
2609, and amendments thereto, shall be determined as if such judge had retired on the date
such judge became permanently physically or mentally disabled. The final average salary of
a former judge whose service is terminated without retiring and who later retires under
K.S.A. 20-2608, and amendments thereto, shall be determined as if such former judge had
retired at the time such service was terminated.

    In the case of judges who retire on or after July 1, 1993, the final average salary shall
mean the average highest annual salary paid to the judge for any three years of the last 10
years of service as a judge immediately preceding retirement or termination of employment,
or if service as a judge is less than three years, then the final average salary shall be the
average annual salary paid to the judge during the full period of service as a judge, or if
service as a judge is less than one year, then the final average salary shall be computed by
multiplying the amount of monthly salary such judge was receiving at the time of retirement
by 12.

    (c) The provisions of law in effect on the retirement date of a judge under the retirement
system for judges shall govern the retirement benefit payable to the judge, any joint annu-
itant and any beneficiary.

    (d) A judge who retires under K.S.A. 20-2608, and amendments thereto, and who, after
such retirement, again is appointed or elected as a judge, shall have the judge's retirement
annuity suspended as provided in this subsection. Such judge shall become an active member
and make employee contributions to the system and receive service credit for any service
after the date of commencement of service in such position. Upon again retiring, any credited
service such member subsequently accrues shall be added to all previous service and the
retirement annuity shall be recalculated in accordance with the provisions of this section.

    Sec. 6. K.S.A. 20-2620, as amended by section 20 of 1998 Senate Bill No. 382, is hereby
amended to read as follows: 20-2620. (a) Except as otherwise provided, each district mag-
istrate judge holding such position on the effective date of this act may become a member
of the retirement system for judges on the first day of the payroll period of the fiscal year
ending June 30, 1994, only by filing with the board of trustees of the Kansas public em-
ployees retirement system on or before the first day of the payroll period of the fiscal year
ending June 30, 1994, a written election to become a member of the system. Failure to file
such written election shall be presumed to be an election not to become a member of the
system. Such election, whether to become a member or not to become a member, shall be
irrevocable. In addition, any such district magistrate judge who makes the election previously
provided in this section, may elect to transfer such district magistrate judge's service credit
from the Kansas public employees retirement system as provided in subsection (e) of K.S.A.
20-2601 and amendments thereto and subsection (c). The date of membership for a district
magistrate judge who became a member of the system as provided in this section and who
purchased service as provided in subsection (c) shall be the day that such district magistrate
judge became a district magistrate judge. Such district magistrate judge shall be subject to
the provisions of subsection (a)(2) of K.S.A. 20-2610 and amendments thereto.

    (b) Each person who becomes a district magistrate judge on or after the effective date
of this act shall become a member of the retirement system for judges on the first day such
person holds the position of district magistrate judge.

    (c) The board of trustees of the Kansas public employees retirement system shall trans-
fer to the credit of the district magistrate judge under the retirement system for judges such
amounts as may be presently credited to a district magistrate judge's account for contribution
under the Kansas public employees retirement system and an equivalent amount to the
employer's account for contributions for such district magistrate judge whenever an appli-
cation for conversion of service under the Kansas public employees retirement system is
received from a district magistrate judge. Subject to the provisions of section 83 and amend-
ments thereto, any district magistrate judge may purchase such service by electing such
purchase prior to retirement by means of a single lump-sum payment or equal annual
payments for not to exceed five years. The lump-sum or annual payments shall be deter-
mined by the system's actuary by using the member's final average salary at the time of
application, actuarial assumptions and tables currently in use by the system and the mem-
ber's attained age.

    Sec. 7. K.S.A. 1997 Supp. 46-2201 is hereby amended to read as follows: 46-2201. (a)
On January 1, 1993, there is hereby created the joint committee on pensions, investments
and benefits which shall be composed of five senators and eight members of the house of
representatives. The five senate members shall be the chairperson of the standing committee
on ways and means of the senate, or a member of such committee appointed by the chair-
person, two members appointed by the president and two members appointed by the mi-
nority leader. The eight representative members shall be the chairperson of the standing
committee on appropriations of the house of representatives, or a member of such com-
mittee appointed by the chairperson, four members appointed by the speaker and three
members appointed by the minority leader.

    (b) All members of the joint committee on pensions, investments and benefits shall
serve for terms ending on the first day of the regular legislative session in odd-numbered
years. After June 30 in odd-numbered years, the chairperson shall be one of the represen-
tative members of the joint committee selected by the speaker and the vice-chairperson
shall be one of the senate members selected by the president. After June 30 in even-num-
bered years, the chairperson shall be one of the senate members of the joint committee
selected by the president and the vice-chairperson shall be one of the representative mem-
bers of the joint committee selected by the speaker. The chairperson and vice-chairperson
of the joint committee shall serve in such capacities until July 1 of the ensuing year. The
vice-chairperson shall exercise all of the powers of the chairperson in the absence of the
chairperson.

    (c) The joint committee on pensions, investments and benefits shall meet at any time
and at any place within the state on call of the chairperson. Members of the joint committee
shall receive compensation and travel expenses and subsistence expenses or allowances as
provided in K.S.A. 75-3212 and amendments thereto when attending meetings of such
committee authorized by the legislative coordinating council.

    (d) In accordance with K.S.A. 46-1204 and amendments thereto, the legislative coor-
dinating council may provide for such professional services as may be requested by the joint
committee on pensions, investments and benefits.

    (e) The joint committee on pensions, investments and benefits may introduce such
legislation as deemed necessary in performing such committee's functions.

    (f) The joint committee on pensions, investments and benefits shall:

    (1) Monitor, review and make recommendations regarding investment policies and ob-
jectives formulated by the board of trustees of the Kansas public employees retirement
system;

    (2) review and make recommendations relating to benefits for members under the Kan-
sas public employees retirement system;

    (3) consider and make recommendations to the standing committee of the senate spec-
ified by the president of the senate relating to the confirmation of members of the board
of trustees of the Kansas public employees retirement system appointed pursuant to K.S.A.
74-4905 and amendments thereto. On and after July 1, 1993, the information provided by
the Kansas bureau of investigation or other criminal justice agency pursuant to subsection
(h) of K.S.A. 74-4905 and amendments thereto relating to the confirmation of members of
the board to the standing committee of the senate specified by the president shall be for-
warded by the Kansas bureau of investigation or such other criminal justice agency to such
joint committee for such joint committee's consideration and other than conviction data,
shall be confidential and shall not be disclosed except to members and employees of the
joint committee as necessary to determine qualifications of such member. The committee,
in accordance with K.S.A. 75-4319 and amendments thereto shall recess for a closed or
executive meeting to receive and discuss information received by the committee pursuant
to this subsection; and

    (4) review and make recommendations to the legislature by the first day of legislative
session commencing in 1997 relating to the implementation of a permanent policy regarding
adjustments in retirement benefit payments to retirants and disabled members. Such rec-
ommendations should include a review of cost-of-living adjustments, the shared earnings
proposal presented to the 1996 legislature and other mechanisms for prefunding adjust-
ments in retirement benefit payments to retirants and disabled members as an alternative
to annual cost-of-living adjustments. In conducting such review the committee may utilize
legislative staff, Kansas public employees retirement system staff, the Kansas public em-
ployees retirement system actuary and other consultants. Any recommendations shall in-
clude actuarially based cost estimates, including an assessment of the impact on the Kansas
public employees retirement system fund's unfunded actuarial liability; and
    (5)  review and make recommendations relating to inclusion of city and county cor-
rectional officers as eligible members of the Kansas police and firemen's retirement system.

    Sec. 8. K.S.A. 72-5501, as amended by section 22 of 1998 Senate Bill No. 382, is hereby
amended to read as follows: 72-5501. As used in this act, unless the context otherwise
requires:

    (a) ``Retirement system'' means the state school retirement system;

    (b) ``board'' means the board of trustees of the Kansas public employees retirement
system;

    (c) ``school year'' means either the twelve-month period beginning on September first,
or the legal school term during such period. In case of doubt the board shall decide what
constitutes a school year. The board shall not give credit for a school year that represents
less than 140 days, except that the board may give credit for a school year if not less than
80 days of actual service has been rendered and if continuance in school service was pre-
vented by illness or other emergency beyond the control of the person entitled to such
credit. No person shall receive credit for more than one school year during any twelve-
month period beginning on September 1. The board shall give credit for 1/2 of a school year
for 1/2 school year of continuous full-time service;

    (d) ``school employees'' means persons who have performed or who shall hereafter per-
form school services as classroom teachers, administrators, supervisors, librarians, nurses,
clerks, janitors or in any other full-time capacity in the public schools, area vocational-
technical schools or community junior colleges of the state of Kansas and who are citizens
of the United States and school employees shall include: (1) Persons who have performed
service as a county superintendent of public instruction or as an employee appointed by and
under the supervision of a county superintendent; (2) persons who have performed service
as a state superintendent of public instruction or as an employee appointed by and under
supervision of a state superintendent; (3) persons who have performed services as an em-
ployee appointed by the former state board for vocational education, except that prior to
the time of accepting such employment by such county superintendent, state superintendent
or state board for vocational education such employees had performed school service in
Kansas as a teacher, principal, supervisor, or superintendent; (4) persons who are employees
appointed by and under the supervision of the constitutional state board of education, in-
cluding those employees transferred to the state department of education at its inception
in January of 1969, and who prior to the time of accepting such employment by the state
board of education had performed school service in Kansas as a teacher, principal, super-
visor, or superintendent; (5) the commissioner of education if such commissioner exercises
an irrevocable option to be covered by the state school retirement system in lieu of being
covered by the Kansas public employees retirement system, which option shall be exercised
by written notice of the commissioner of education at the time of appointment. Such notice
shall be directed to the state school retirement board and the board of trustees of the Kansas
public employees retirement system; (6) all instructional employees for the school for the
blind and such employees shall be excluded from participation in any other state retirement
system; and (7) teachers and supervisors of instruction at the state institutions under the
management of the director of penal institutions and those under the management of the
state board of social welfare which provide regular classroom instruction for their inmates
or patients if such instructional personnel have valid certificates issued by the state board
of education, except that the provisions of this subsection shall not include such employees
who have elected or shall elect, irrevocably, at the time of employment by the institution to
participate in the Kansas public employees retirement system. The term ``school employees''
shall not include any employee while a member of a separate retirement system operated
by any board of education but if any such employee at any time becomes eligible to partic-
ipate in the state retirement as provided by this act, the years such person served in a school
system in Kansas which maintains a separate retirement system shall be included in deter-
mining years of service of such person under this act. An employee performing service in a
school system maintaining its own separate retirement system in Kansas may qualify for
service credit in the state system by discontinuing membership in such separate retirement
system prior to the time of retirement and accepting a position which is covered by the state
retirement system, and continuing in such service for at least one school year. Subject to
the provisions of section 83 and amendments thereto, such employee shall contribute to the
state retirement system an amount of money equal to that which was deducted from such
employee's salary for services rendered after September 1, 1941, in the city maintaining its
own retirement system and this amount shall be credited to the savings account of the
employee. If such employee was for any reason excluded from participation in the separate
retirement system, the board shall give credit for such nonmember service in the public
schools in the city maintaining a separate retirement system without the required transfer
of funds. After September 1, 1971, no person shall be deemed a school employee for the
purposes of this act;

    (e) ``school service'' means: (1) Service performed as a school employee prior to Sep-
tember 1, 1941, if such years of service include at least six months during the years 1938-
39 or 1939-40 or 1940-41; service performed by any employee who was not in school service
in any of the school years from 1938 to 1941, but who reentered school service after Sep-
tember 1, 1941, and continued in such service for at least five years; all service prior to
September 1, 1941, of any annuitant who retired prior to September 1, 1961, and who was
granted a service annuity for one or more years as a contributing member of the school
retirement system; all service prior to September 1, 1941, of any employee who served for
at least six months during one of the qualifying years from 1938 to 1941 in a school system
maintaining its own separate retirement system in Kansas, if such employee has not quali-
fied, nor will in the future qualify, for retirement benefits under the separate retirement
system; all service as a school employee, including out-of-state service as a school employee,
for a period of 12 10 or more years prior to September 1, 1938, except that service annuities
paid by the state of Kansas to such school employees shall not include such out-of-state
service as a school employee, unless otherwise provided by law; (2) service as a school
employee after September 1, 1941, as a contributing member of the school retirement
system. No service credit shall be granted to a school employee who established or shall
hereafter establish membership later than September 1, 1941, for a period of time between
September 1, 1941, and the date of becoming a contributing member of the retirement
system. School service shall include only full-time employees, except that 1/2 year of credit
shall be given to instructional employees who perform school service on at least a 1/2 time
basis throughout a school year. No school service credit shall be given in fractional units of
less than 1/2 year. The board may grant service credit to employees, who were performing
school service at the time of their induction into the armed forces of the United States,
equal to the time spent in the armed forces between September 1, 1940, and September 1,
1947, and between June 25, 1950, and July 27, 1953 and between August 5, 1964, and
August 15, 1973, but no such service credit shall be granted for a period of more than five
years spent in the armed forces between September 1, 1940, and September 1, 1947, or for
a period of more than two years spent in the armed forces between June 25, 1950, and July
27, 1953 or for a period of more than two years spent in the armed forces between August
5, 1964 and August 15, 1973. In the event the employee served during the periods between
September 1, 1940, and September 1, 1947, and between June 25, 1950, and July 27, 1953,
such employee shall be granted a service credit for the actual time spent in the armed forces
between June 25, 1950, and July 27, 1953, nor shall such service credit be granted to any
employee unless such employee shall reenter school service and continue in such service
for at least one school year. The board may grant service credit to an employee who was
performing school service prior to the time of becoming employed as a veterans' instruc-
tional on-the-farm training instructor equal to the time spent as such instructor between
the dates of September 1, 1946, and September 1, 1961. The board may grant service credit
to an employee who prior to performing school service was a faculty member of the Kansas
vocational school at Topeka, known part of the time as the Kansas technical institute, which
operated under the Kansas state board of regents prior to 1956 equal to the time spent as
instructor at such school. In case of doubt the board shall decide what constitutes school
service; and (3) service for which credit must be given under federal law, including, but not
limited to, when applicable, the uniformed services employment and reemployment rights
act of 1994, as in effect on July 1, 1998;

    (f) ``school annuitant'' means any person who is entitled to receive a school annuity;

    (g) ``school annuity'' means the monthly payments due to any school annuitant. Such
payments shall continue for life, and be paid in monthly installments;

    (h) ``service annuity'' means that part of the school annuity which is based upon the
service record of the person concerned, and which is paid by the state;

    (i) ``savings annuity'' means that part of the school annuity which results from the ac-
cumulated contributions of the school employee and interest thereon less the proportionate
share of the expense of the administration of this act;

    (j) ``disability annuity'' means a school annuity granted to a school employee who suffers
such physical or mental disability as to be unable to perform school service;

    (k) ``standard annuity'' means the school annuity which is granted to a school employee
at the age of 65 years, as prescribed by this act. The standard annuity shall be used as the
basis in computing actuarially equivalent annuities granted at ages prior to 65 years. When-
ever the amount of any benefit is to be determined on the basis of actuarial assumptions,
the assumption shall be specified in a way that precludes employer discretion;

    (l) ``service record'' means the individual record kept by the board for each school
employee. It shall show the number of school years of school service, the salary or wages
earned, the date of birth, and such other data as the board may require;

    (m) ``age'' and ``attained age'' shall be computed as of September 1 of the calendar year
under consideration;

    (n) ``deductions'' means the amounts withheld, as provided in this act, from warrants
issued in payment for school services;

    (o) ``actuarial computation'' means computation in accordance with some standard ac-
tuarial table. The board shall determine which one of the standard actuarial tables shall be
used. Whenever the amount of any benefit is to be determined on the basis of actuarial
assumptions, the assumptions shall be specified in a way that precludes employer discretion;
and

    (p) ``compensation'' means the same as provided in section 83 and amendments thereto
for purposes of nondiscrimination testing pursuant to the federal internal revenue code of
1986, as in effect on July 1, 1998.

    Sec. 9. K.S.A. 1997 Supp. 74-4902, as amended by section 26 of 1998 Senate Bill No.
382, is hereby amended to read as follows: 74-4902. As used in articles 49 and 49a of chapter
74 and amendments thereto, unless otherwise provided or the context otherwise requires:

    (1) ``Accumulated contributions'' means the sum of all contributions by a member to
the system which are credited to the member's account, with interest allowed thereon;

    (2) ``acts'' means K.S.A. 74-4901 to 74-4929, inclusive, the provisions of articles 49 and
49a of the Kansas Statutes Annotated and amendments thereto;

    (3) ``actuarial equivalent'' means an annuity or benefit of equal value to the accumulated
contributions, annuity or benefit, when computed upon the basis of the actuarial tables in
use by the system. Whenever the amount of any benefit is to be determined on the basis of
actuarial assumptions, the assumptions shall be specified in a way that precludes employer
discretion;

    (4) ``actuarial tables'' means the actuarial tables approved and in use by the board at
any given time;

    (5) ``actuary'' means the actuary or firm of actuaries employed or retained by the board
at any given time;

    (6) ``agent'' means the individual designated by each participating employer through
whom system transactions and communication are directed;

    (7) ``beneficiary'' means any natural person or persons or estate named by a member to
receive any benefits as provided for by this act. Designations of beneficiaries by a member
who is a member of more than one retirement system made on or after July 1, 1987, shall
be the basis of any benefits payable under all systems unless otherwise provided by law.
Except as otherwise provided by subsection (33) of this section, if there is no named ben-
eficiary living at time of member's death, any benefits provided for by this act shall be paid
to: (A) The member's surviving spouse; (B) the member's dependent child or children; (C)
the member's dependent parent or parents; (D) the member's nondependent child or chil-
dren; (E) the member's nondependent parent or parents; (F) the estate of the deceased
member; in the order of preference as specified in this subsection. Any payment made to
a named beneficiary shall be a full discharge and release to the system from any further
claims. Any payment made to a beneficiary as provided in clauses (A), (B), (C), (D), (E) or
(F) of this subsection, as determined by the board, shall be a full discharge and release to
the system from any further claims. Whenever any payment is payable to more than one
beneficiary such payment shall be made to such beneficiaries jointly. Any benefits payable
to a beneficiary or beneficiaries who are minor children or incompetent persons shall be
made in the name of the beneficiary or beneficiaries and delivered to the lawfully appointed
conservator of such beneficiaries who was nominated by will or as otherwise provided by
law, except that in those cases where the benefit involves only the payment of the member's
accumulated contributions with interest as provided by this act in an amount not to exceed
$500, the board is hereby authorized in its discretion without the appointment of a conser-
vator or the giving of a bond to pay such amount as is due to the minor or minors themselves,
any payment so made shall be a full discharge and release to the system from any further
claims;

    (8) ``board of trustees,'' ``board'' or ``trustees'' means the managing body of the system
which is known as the Kansas public employees retirement system board of trustees;

    (9) ``compensation'' means, except as otherwise provided, all salary, wages and other
remuneration payable to a member for personal services performed for a participating em-
ployer, including maintenance or any allowance in lieu thereof provided a member as part
of compensation, but not including reimbursement for travel or moving expenses or on and
after July 1, 1994, payment pursuant to an early retirement incentive program made prior
to the retirement of the member. Beginning with the employer's fiscal year which begins
in calendar year 1991 or for employers other than the state of Kansas, beginning with the
fiscal year which begins in calendar year 1992, when the compensation of a member who
remains in substantially the same position during any two consecutive years of participating
service used in calculating final average salary is increased by an amount which exceeds
15%, then the amount of such increase which exceeds 15% shall not be included in com-
pensation, except that (A) any amount of compensation for accumulated sick leave or va-
cation or annual leave paid to the member, (B) any increase in compensation for any member
due to a reclassification or reallocation of such member's position or a reassignment of such
member's job classification to a higher range or level and (C) any increase in compensation
as provided in any contract entered into prior to January 1, 1991, and still in force on the
effective date of this act, pursuant to an early retirement incentive program as provided in
K.S.A. 72-5395 et seq. and amendments thereto, shall be included in the amount of com-
pensation of such member used in determining such member's final average salary and shall
not be subject to the 15% limitation provided in this subsection. Any contributions by such
member on the amount of such increase which exceeds 15% which is not included in
compensation shall be returned to the member. Unless otherwise provided by law, beginning
with the employer's fiscal year coinciding with or following July 1, 1985, compensation shall
include any amounts for tax sheltered annuities or deferred compensation plans. Beginning
with the employer's fiscal year which begins in calendar year 1991, compensation shall
include amounts under sections 403b, 457 and 125 of the federal internal revenue code of
1986 and, as the board deems appropriate, any other section of the federal internal revenue
code of 1986 which defers or excludes amounts from inclusion in income. For purposes of
applying limits under the federal internal revenue code ``compensation'' shall have the mean-
ing as provided in section 83 and amendments thereto;

    (10) ``credited service'' means the sum of participating service and prior service and in
no event shall credited service include any service which is credited under another retire-
ment plan authorized under any law of this state;

    (11) ``dependent'' means a parent or child of a member who is dependent upon the
member for at least 1/2 of such parent or child's support;

    (12) ``effective date'' means the date upon which the system becomes effective by op-
eration of law;

    (13) ``eligible employer'' means the state of Kansas, and any county, city, township,
special district or any instrumentality of any one or several of the aforementioned or any
noncommercial public television or radio station located in this state which receives state
funds allocated by the Kansas public broadcasting commission whose employees are covered
by social security. If a class or several classes of employees of any above defined employer
are not covered by social security, such employer shall be deemed an eligible employer only
with respect to such class or those classes of employees who are covered by social security;

    (14) ``employee'' means any appointed or elective officer or employee of a participating
employer whose employment is not seasonal or temporary and whose employment requires
at least 1,000 hours of work per year, but not including: (A) Any person covered by or
eligible for or who will become eligible for a retirement annuity under the provisions of
K.S.A. 74-4925 and amendments thereto except as otherwise specifically provided in sub-
section (3) of K.S.A. 74-4925 and amendments thereto and this subsection; (B) Any em-
ployee who is a contributing member of the United States civil service retirement system;
(C) any employee of an eligible employer who is a participant in public service employment
under title II and title VI of the federal comprehensive employment and training act of
1973; (D) (B) any employee who is a contributing member of the federal employees retire-
ment system; (C) any employee who is a leased employee of a participating employer.
``Leased employee'' means the same as provided in section 414 of the federal internal rev-
enue code; (E) and (D) any employee or class of employees specifically exempted by law.
After June 30, 1975, no person who is otherwise eligible for membership in the Kansas
public employees retirement system shall be barred from such membership by reason of
coverage by, eligibility for or future eligibility for a retirement annuity under the provisions
of K.S.A. 74-4925 and amendments thereto, except that no person shall receive service
credit under the Kansas public employees retirement system for any period of service for
which benefits accrue or are granted under a retirement annuity plan under the provisions
of K.S.A. 74-4925 and amendments thereto. After June 30, 1982, no person who is otherwise
eligible for membership in the Kansas public employees retirement system shall be barred
from such membership by reason of coverage by, eligibility for or future eligibility for any
benefit under another retirement plan authorized under any law of this state, except that
no such person shall receive service credit under the Kansas public employees retirement
system for any period of service for which any benefit accrues or is granted under any such
retirement plan. Employee shall include persons who are in training at or employed by, or
both, a sheltered workshop for the blind operated by the secretary of social and rehabilitation
services. The entry date for such persons shall be the beginning of the first pay period of
the fiscal year commencing in calendar year 1986. Such persons shall be granted prior
service credit in accordance with K.S.A. 74-4913 and amendments thereto. However, such
persons classified as home industry employees shall not be covered by the retirement system.
Employees shall include any member of a board of county commissioners of any county and
any council member or commissioner of a city whose compensation is equal to or exceeds
$5,000 per year;

    (15) ``entry date'' means the date as of which an eligible employer joins the system. The
first entry date pursuant to this act is January 1, 1962;

    (16) ``executive secretary'' means the managing officer of the system employed by the
board under this act;

    (17) ``final average salary'' means in the case of a member who retires prior to January
1, 1977, and in the case of a member who retires after January 1, 1977, and who has less
than five years of participating service after January 1, 1967, the average highest annual
compensation paid to such member for any five years of the last 10 years of participating
service immediately preceding retirement or termination of employment, or in the case of
a member who retires on or after January 1, 1977, and who has five or more years of
participating service after January 1, 1967, the average highest annual compensation paid
to such member on or after January 1, 1967, for any five years of participating service
preceding retirement or termination of employment, or, in any case, if participating service
is less than five years, then the average annual compensation paid to the member during
the full period of participating service, or, in any case, if the member has less than one
calendar year of participating service such member's final average salary shall be computed
by multiplying such member's highest monthly salary received in that year by 12; in the
case of a member who became a member under subsection (3) of K.S.A. 74-4925 and
amendments thereto, or who became a member with a participating employer as defined
in subsection (3) of K.S.A. 74-4931 and amendments thereto and who elects to have com-
pensation paid in other than 12 equal installments, such compensation shall be annualized
as if the member had elected to receive 12 equal installments for any such periods preceding
retirement; in the case of a member who retires after July 1, 1987, the average highest
annual compensation paid to such member for any four years of participating service pre-
ceding retirement or termination of employment; in the case of a member who retires on
or after July 1, 1993, who was first hired as an employee, as defined in subsection (14) of
K.S.A. 74-4902 and amendments thereto, prior to July 1, 1993, the average highest annual
compensation, as defined in subsection (9), paid to such member for any four years of
participating service preceding retirement or termination of employment or the average
highest annual salary, as defined in subsection (34), paid to such member for any three years
of participating service preceding retirement or termination of employment, whichever is
greater; and in the case of a member who retires on or after July 1, 1993, and who is first
hired as an employee, as defined in subsection (14) of K.S.A. 74-4902 and amendments
thereto, on or after July 1, 1993, the average highest annual salary, as defined in subsection
(34), paid to such member for any three years of participating service preceding retirement
or termination of employment. Final average salary shall not include any purchase of par-
ticipating service credit by a member as provided in subsection (2) of K.S.A. 74-4919h and
amendments thereto which is completed within five years of retirement. For any application
to purchase or repurchase service credit for a certain period of service as provided by law
received by the system after May 17, 1994, for any member who will have contributions
deducted from such member's compensation at a percentage rate equal to two or three
times the employee's rate of contribution or will begin paying to the system a lump-sum
amount for such member's purchase or repurchase and such deductions or lump-sum pay-
ment commences after the commencement of the first payroll period in the third quarter,
``final average salary'' shall not include any amount of compensation or salary which is based
on such member's purchase or repurchase. Any application to purchase or repurchase mul-
tiple periods of service shall be treated as multiple applications. For purposes of this sub-
section, the date that such member is first hired as an employee for members who are
employees of employers that elected to participate in the system on or after January 1, 1994,
shall be the date that such employee's employer elected to participate in the system. In the
case of any former member who was eligible for assistance pursuant to K.S.A. 74-4925 and
amendments thereto prior to July 1, 1998, for the purpose of calculating final average salary
of such member, such member's final average salary shall be based on such member's salary
while a member of the system or while eligible for assistance pursuant to K.S.A. 74-4925
and amendments thereto, whichever is greater;

    (18) ``fiscal year'' means, for the Kansas public employees retirement system, the period
commencing July 1 of any year and ending June 30 of the next;

    (19) ``Kansas public employees retirement fund'' means the fund created by this act for
payment of expenses and benefits under the system and referred to as the fund;

    (20) ``leave of absence'' means a period of absence from employment without pay, au-
thorized and approved by the employer, and which after the effective date does not exceed
one year;

    (21) ``member'' means an eligible employee who is in the system and is making the
required employee contributions, or; any former employee who has made the required
contributions to the system and has not received a refund if such member is within five
years of termination of employment with a participating employer; or any former employee
who has made the required contributions to the system, has not yet received a refund and
has been granted a vested benefit;

    (22) ``military service'' means service in the uniformed forces of the United States, for
which retirement benefit credit must be given under the provisions of USERRA or service
in the armed forces of the United States or in the commissioned corps of the United State
States public health service, which service is immediately preceded by a period of employ-
ment as an employee or by the entering into of an employment contract with a participating
employer and is followed by return to employment as an employee with the same or another
participating employer within 12 months immediately following discharge from such military
service, except that if the board determines that such return within 12 months was made
impossible by reason of a service-connected disability, the period within which the employee
must return to employment with a participating employer shall be extended not more than
two years from the date of discharge or separation from military service;

    (23) ``normal retirement date'' means the date on or after which a member may retire
with full retirement benefits pursuant to K.S.A. 74-4914 and amendments thereto;

    (24) ``participating employer'' means an eligible employer who has agreed to make con-
tributions to the system on behalf of its employees;

    (25) ``participating service'' means the period of employment after the entry date for
which credit is granted a member;

    (26) ``prior service'' means the period of employment of a member prior to such mem-
ber's the entry date for which credit is granted a member under this act;

    (27) ``prior service annual salary'' means the highest annual salary, not including any
amounts received as payment for overtime or as reimbursement for travel or moving ex-
pense, received for personal services by the member from the current employer in any one
of the three calendar years immediately preceding January 1, 1962, or the entry date of the
employer, whichever is later, except that if a member entered the employment of the state
during the calendar year 1961, the prior service annual salary shall be computed by multi-
plying such member's highest monthly salary received in that year by 12;

    (28) ``retirant'' means a member who has retired under this system;

    (29) ``retirement benefit'' means a monthly income or the actuarial equivalent thereof
paid in such manner as specified by the member pursuant to this act or as otherwise allowed
to be paid at the discretion of the board, with benefits accruing from the first day of the
month coinciding with or following retirement and ending on the last day of the month in
which death occurs. Upon proper identification a surviving spouse may negotiate the warrant
issued in the name of the retirant;

    (30) ``retirement system'' or ``system'' means the Kansas public employees retirement
system as established by this act and as it may be amended;

    (31) ``social security'' means the old age, survivors and disability insurance section of
the federal social security act;

    (32) ``total disability'' means a physical or mental disability which prevents the member
from engaging, for remuneration or profit, in any occupation for which the member is
reasonably suited by education, training or experience;

    (33) ``trust'' means an express trust, created by a trust instrument, including a will,
designated by a member to receive payment of the insured death benefit under K.S.A.
74-4927 and amendments thereto and payment of the member's accumulated contributions
under subsection (1) of K.S.A. 74-4916 and amendments thereto. A designation of a trust
shall be filed with the board. If there is a designated trust at the time of the member's
death, the insured death benefit for the member under K.S.A. 74-4927 and amendments
thereto and the member's accumulated contributions under subsection (1) of K.S.A. 74-
4916 and amendments thereto shall be paid to the trust in lieu of the member's beneficiary.
If no will is admitted to probate within six months after the death of the member or no
trustee qualifies within such six months or if the designated trust fails, for any reason what-
soever, the insured death benefit under K.S.A. 74-4927 and amendments thereto and the
member's accumulated contributions under subsection (1) of K.S.A. 74-4916 and amend-
ments thereto shall be paid in accordance with the provisions of subsection (7) of this section
as in other cases where there is no named beneficiary living at the time of the member's
death and any payments so made shall be a full discharge and release to the system from
any further claims;

    (34) ``salary'' means all salary and wages payable to a member for personal services
performed for a participating employer, including maintenance or any allowance in lieu
thereof provided a member as part of salary. Salary shall not include reimbursement for
travel or moving expenses, payment for accumulated sick leave or vacation or annual leave,
severance pay or any other payments to the member determined by the board to not be
payments for personal services performed for a participating employer constituting salary
or on and after July 1, 1994, payment pursuant to an early retirement incentive program
made prior to the retirement of the member. When the salary of a member who remains
in substantially the same position during any two consecutive years of participating service
used in calculating final average salary is increased by an amount which exceeds 15%, then
the amount of such increase which exceeds 15% shall not be included in salary. Any con-
tributions by such member on the amount of such increase which exceeds 15% which is not
included in compensation shall be returned to the member. Unless otherwise provided by
law, salary shall include any amounts for tax sheltered annuities or deferred compensation
plans. Salary shall include amounts under sections 403b, 457 and 125 of the federal internal
revenue code of 1986 and, as the board deems appropriate, any other section of the federal
internal revenue code of 1986 which defers or excludes amounts from inclusion in income.
For purposes of applying limits under the federal internal revenue code ``salary'' shall have
the meaning as provided in section 83 and amendments thereto. In any case, if participating
service is less than three years, then the average annual salary paid to the member during
the full period of participating service, or, in any case, if the member has less than one
calendar year of participating service such member's final average salary shall be computed
by multiplying such member's highest monthly salary received in that year by 12;

    (35) ``federal internal revenue code'' means the federal internal revenue code of 1954
or 1986, as in effect on July 1, 1998, and as applicable to a governmental plan; and

    (36) ``USERRA'' means the federal uniformed services employment and reemployment
rights act of 1994 as in effect on July 1, 1998.

    Sec. 10. K.S.A. 1997 Supp. 74-4904 is hereby amended to read as follows: 74-4904. (1)
The system may sue and be sued in its official name, but its trustees, officers, employees
and agents shall not be personally liable for acts of the system unless such person acted with
willful, wanton or fraudulent misconduct or intentionally tortious conduct. Any agreement
in settlement of litigation involving the system and the investment of moneys of the fund is
a public record as provided in K.S.A. 45-215 et seq. and amendments thereto and subject
to the provisions of that act. The service of all legal process and of all notices which may be
required to be in writing, whether legal proceedings or otherwise, shall be had on the
executive secretary at such executive secretary's office. All actions or proceedings directly
or indirectly against the system shall be brought in Shawnee county.

    (2)  Any person aggrieved by any order or decision of the board made without a hearing,
may, within 30 days after notice of the order or decision of the board make written request
to the board for a hearing thereon. The board shall hear such party or parties in accordance
with the provisions of the Kansas administrative procedure act at its next regular meeting
or at a special meeting within 60 days after receipt of such request. For the purpose of any
hearing under this section, the board may appoint one or more presiding officers. Any such
presiding officer shall be a member of the board or, an employee of the board or any other
person designated by the board to serve as such presiding officer. Any such appointment
shall apply to a particular hearing or to a set or class of hearings as specified by the board
in making such appointment. The board shall review an initial order resulting from a hearing
under this section. Any member of the board who serves as a presiding officer shall be
reimbursed for actual and necessary expenses and shall receive compensation in an amount
fixed by the board not to exceed the per diem compensation allowable for members of the
board. The board is hereby authorized to enter into a contract with any other person des-
ignated by the board to serve as a presiding officer who is not a member or employee of the
board and to provide for reimbursement for actual and necessary expenses and compensation
for such person serving as a presiding officer.

    Sec. 11. K.S.A. 1997 Supp. 74-4905 is hereby amended to read as follows: 74-4905. (a)
On July 1, 1993, the board of trustees of the Kansas public employees retirement system,
as such board existed on June 30, 1993, is hereby abolished. On July 1, 1993, there is hereby
established a new board of trustees of the Kansas public employees retirement system. Such
board established on July 1, 1993, shall consist of nine members, as follows:

    (1) Six appointed members, four appointed by the governor subject to confirmation by
the senate as provided in K.S.A. 75-4315b and amendments thereto, one appointed by the
president of the senate and one appointed by the speaker of the house of representatives.
Except as provided by K.S.A. 1996 1997 Supp. 46-2601, no person appointed to the board
whose appointment is subject to confirmation, shall exercise any power, duty or function as
a member of the board until confirmed by the senate. No more than two members of the
board whose appointment is subject to confirmation shall be from the same political party;

    (2) two retirement system members elected by the members and retirants of the system
as provided in subsection (12) of K.S.A. 74-4909 and amendments thereto. As provided in
this subsection, only active and retired members of the system shall be eligible to be elected
to the board and only active and retired members of the system shall be eligible to elect
the two retirement system members pursuant to this subsection. Inactive members shall
not be eligible to be elected to the board nor to elect the two retirement system members
elected pursuant to this subsection. If a member elected to the board as provided in this
subsection becomes inactive, such member is disqualified from service on the board and such
member's board position shall be vacant and such vacancy shall be filled as provided in
subsection (b)(1). Of the two retirement system members elected pursuant to this subsec-
tion, one shall be a member of the retirement system who is in school employment as
provided in K.S.A. 74-4931 et seq. and amendments thereto and one shall be a member of
the retirement system other than a member who is in school employment. For purposes of
this subsection, retirement system means the Kansas public employees retirement system,
the Kansas police and firemen's retirement system and the retirement system for judges;
and

    (3) the state treasurer.

    (b) (1) Except as provided by this paragraph and paragraph (2), all members of the
board as provided in subsection (a)(1) and (a)(2) shall serve four-year terms, except that of
the members first appointed by the governor, two shall be appointed for two-year terms
and the member appointed by the speaker of the house of representatives shall be appointed
for a two-year term. The governor shall designate the term for which each of the members
first appointed shall serve. All members appointed to fill vacancies in the membership of
the board and all members appointed to succeed members appointed to membership on
the board shall be appointed in like manner as that provided for the original appointment
of the member succeeded. All members appointed to fill vacancies of a member of the
board appointed by the governor, the president of the senate or the speaker of the house
of representatives shall be appointed to fill the unexpired term of such member. All vacancies
on the board by a member elected by the members and retirants of the system shall be
filled by the board as provided by rules and regulations adopted as provided in subsection
(12) of K.S.A. 74-4909 and amendments thereto.

    (2) Except as provided in K.S.A. 1996 1997 Supp. 46-2601, no person appointed to the
board by the governor shall exercise any power, duty or function as a member of the board
until confirmed by the senate. The terms of members appointed by the governor who are
serving on the board on the effective date of this act shall expire on January 15, of the year
in which such member's term would have expired under the provisions of this section prior
to amendment by this act. Thereafter, members shall be appointed for terms of four years
and until their successors are appointed and confirmed.

    (c) The board shall elect a chairperson of the board at the first regular meeting held on
or after July 1, 1993, and at each annual meeting thereafter from the members of the board.
The chairperson shall preside over meetings of the board and perform such other duties as
required by the board.

    (d) The chairperson shall appoint another board member as vice-chairperson, and the
vice-chairperson shall perform the duties of chairperson in the absence of the chairperson
or upon the chairperson's inability or refusal to act.

    (e) The six members appointed pursuant to subsection (a)(1) shall have demonstrated
experience in the financial affairs of a public or private organization or entity which employs
100 or more employees or had at least five years' experience in the field of investment
management or analysis, actuarial analysis or administration of an employee benefit plan.

    (f) No person shall serve on the board if such person has knowingly acquired a sub-
stantial interest in any nonpublicly traded investment made with moneys of the fund. Any
such person who knowingly acquires such an interest shall vacate such member's position
on the board and shall be guilty of a class A misdemeanor. For purposes of this subsection,
``substantial interest'' means any of the following:

    (1) If an individual or an individual's spouse, either individually or collectively, has
owned within the preceding 12 months a legal or equitable interest exceeding $5,000 or 5%
of any business, whichever is less, the individual has a substantial interest in that business.

    (2) If an individual or an individual's spouse, either individually or collectively, has re-
ceived during the preceding calendar year compensation which is or will be required to be
included as taxable income on federal income tax returns of the individual and spouse in an
aggregate amount of $2,000 from any business or combination of businesses, the individual
has a substantial interest in that business or combination of businesses.

    (3) If an individual or an individual's spouse holds the position of officer, director,
associate, partner or proprietor of any business, the individual has a substantial interest in
that business, irrespective of the amount of compensation received by the individual or
individual's spouse.

    (4) If an individual or an individual's spouse receives compensation which is a portion
or percentage of each separate fee or commission paid to a business or combination of
businesses, the individual has a substantial interest in any client or customer who pays fees
or commissions to the business or combination of businesses from which fees or commissions
the individual or the individual's spouse, either individually or collectively, received an ag-
gregate of $2,000 or more in the preceding calendar year.

    (5) If an individual or an individual's spouse has received a loan from or received fi-
nancing from any bank, savings and loan, credit union or any other financial institution in
an amount which exceeds $2,000, the individual has a substantial interest in that financial
institution.

    As used in this subsection, ``client or customer'' means a business or combination of
businesses.

    Any person who serves on the board shall fully disclose any substantial interest that such
person has in any publicly traded investment made with moneys of the fund.

    (g) No person who serves on the board shall be employed for a period of two years
commencing on the date the person no longer serves on the board and ending two years
after such date with any organization in which moneys of the fund were invested, except
that the employment limitation contained in this subsection shall not apply if such person's
employment is with an organization whose stock or other evidences of ownership are traded
on the public stock or bond exchanges.

    (h) All members of the board named, appointed or elected to the board shall be subject
to an investigation by the Kansas bureau of investigation or other criminal justice agencies.
Information to be obtained during such investigation shall include criminal history record
information, including arrest and conviction data, criminal intelligence information and in-
formation relating to criminal and background investigations as necessary to determine qual-
ifications of such member. Such information shall be forwarded to the senate committee
specified by the president of the senate for such committee's consideration and other than
conviction data, shall be confidential and shall not be disclosed except to members and
employees of the committee as necessary to determine qualifications of such member. The
committee, in accordance with K.S.A. 75-4319 and amendments thereto shall recess for a
closed or executive meeting to receive and discuss information received by the committee
pursuant to this subsection.

    (i) All of the powers, duties and functions of the board of trustees of the Kansas public
employees retirement system as such board existed prior to July 1, 1993, are hereby trans-
ferred to and conferred and imposed upon the board of trustees established pursuant to
this act. The board of trustees of the Kansas public employees retirement system established
pursuant to this act shall be the successor in every way of the powers, duties and functions
of the board of trustees existing prior to July 1, 1993, in which the same were vested prior
to July 1, 1993.

    Sec. 12. K.S.A. 1997 Supp. 74-4907 is hereby amended to read as follows: 74-4907. (1)
The principal office of the system shall be in quarters at Topeka, Kansas. Offices shall be
assigned to the system by the secretary of administration.

    (2) The board shall keep a complete record of all proceedings which shall be open at
all reasonable hours to inspection. Any agreement in settlement of litigation involving the
system and the investment of moneys of the fund shall be open for inspection by any person
and suitable facilities shall be made available by the system for this purpose as provided by
the provisions of K.S.A. 45-215 et seq. and amendments thereto. A report covering the
operation of the system for the past fiscal year, including income and disbursements, and
of the financial condition of the system at the end of such fiscal year, showing the valuation
of assets and investments and liabilities of the system, shall be delivered after the end of
each fiscal year and prior to January 1 of the next fiscal year to the governor and to the
chairperson of the legislative coordinating council, to the secretary of the senate and to the
chief clerk of the house of representatives and shall be made readily available to the mem-
bers and participating employers of the system. Such report shall include the financial state-
ments of the system and supporting schedules, presented in accordance with generally ac-
cepted accounting principles. Such supporting schedules presented in the annual report
shall include a listing which reports the cost and the fiscal year end lower amount of cost
or market value for each individual alternative investment of the system which was initiated
on or after July 1, 1991, and reports, in aggregate, the cost and the fiscal year end lower
amount of cost or market value for those alternative investments of the system initiated
prior to July 1, 1991. The retirement system shall maintain a listing which reports the cost
and the fiscal year end lower amount of cost or market value for each individual alternative
investment of the system which was initiated prior to July 1, 1991, and such listing shall be
available for review in camera by the joint committee on pensions, investments and benefits
and as may be required under the provisions of the legislative post audit act.

    Sec. 13. K.S.A. 1997 Supp. 74-4908 is hereby amended to read as follows: 74-4908. (1)
The board shall appoint an executive secretary and shall establish the compensation therefor.
Subject to the direction of the board, the executive secretary shall be the managing officer
of the system and as such shall have charge of the office, records and supervision and
direction of the employees of the system. The executive secretary shall be in the unclassified
service under the Kansas civil service act.

    (2) The executive secretary shall recommend to the board the administrative organi-
zation, the number and qualifications of employees necessary to carry out the intent of this
act and the directions of the board. Upon approval of the board, the executive secretary is
authorized to employ such persons in accordance with the Kansas civil service act.

    (3) The board of trustees shall select and employ or retain a qualified actuary who shall
serve at its pleasure as its technical advisor on matters regarding operation of the system.
The actuary shall:

    (a) Make an annual valuation of the liabilities and reserves of the system, and a deter-
mination of the contributions required by the system to discharge its liabilities and admin-
istrative costs under this act, and recommend to the board rates of employer contributions
required to establish and maintain the system on an actuarial reserve basis. Such recom-
mended employer contributions shall not be based on any other purpose outside of the
needs of the system as prescribed by this subsection.

    (b) As soon after the effective date as practicable and once every three years thereafter,
make a general investigation of the actuarial experience under the system including mor-
tality, retirement, employment turnover and interest, and recommend actuarial tables for
use in valuations and in calculating actuarial equivalent values based on such investigation.

    (c) Cooperate with and provide any assistance to the actuary, the legislative coordinating
council and the joint committee on pensions, investments and benefits related to the in-
dependent actuarial audit and evaluation as provided in K.S.A. 1996 1997 Supp. 74-4908a
and amendments thereto.

    (d) Perform such other duties as may be assigned by the board.

    (4) The attorney general of the state shall furnish such legal services as may be necessary
upon receipt of a request from the board, except that legal services may be furnished by
other counsel as the board in its discretion deems necessary and prudent.

    (5) The board shall employ or retain qualified investment counsel or counselors or may
negotiate with a trust company to assist and advise in the judicious investment of funds as
herein provided.

    (6) The board may appoint a deputy executive secretary, an investment officer, an in-
vestment analyst, a real estate manager, a direct placement manager, a chief fiscal officer,
a member services officer, an attorney, an assistant investment officer and an information
resource officer to advise and assist the board in the performance of powers, duties and
functions relating to the management and investment of the fund and in such other matters
as may be directed by the board. Such appointed officers and employees shall be in the
unclassified service under the Kansas civil service act. The compensation of such appointed
officers and employees shall be established by the board.

    Sec. 14. K.S.A. 1997 Supp. 74-4910 is hereby amended to read as follows: 74-4910. (1)
An eligible employer may join the system on January 1 of any year. Application for affiliation
shall be in the form of a resolution approved by the governing or legislative body of the
eligible employer or by any other body or officer authorized by law or recognized by the
board to approve the action. No city or township shall become a participating employer
except by the adoption of a resolution therefor, which shall be published once in the official
city or township newspaper or, if there is none, in a newspaper of general circulation in the
city or county. No such resolution shall take effect until 60 days after its final publication.
If within 60 days of its final publication a petition signed by electors equal in number to not
less than 10% of the electors who voted at the last preceding regular election in the township,
in the case of townships, the last regular city election in the city, in the case of cities is filed
in the office of the clerk of such city, or township demanding that such resolution be sub-
mitted to a vote of the electors, the resolution shall not take effect until submitted to a
referendum and approved by a majority of the electors voting thereon. A 2/3 vote of the
members-elect of the governing body shall be necessary for the affiliation of any eligible
employer other than a city or township. An application for affiliation with the system shall
be filed with the board not later than 30 days prior to the date participation is to begin,
except as such time limit may be extended by the board. Upon the filing of a certified copy
of such resolutions with the board an election pursuant to this section shall be irrevocable,
and the employer shall become a participating employer on January 1 of the year immedi-
ately following the filing of such election with the board.

    (2) The state of Kansas in its capacity as an eligible employer, shall become, by operation
of law, a participating employer on the first entry date. The Kansas turnpike authority shall
not become a participating employer nor shall its officers or employees be covered by the
retirement system until such time as its governing body by a 2/3 vote of the members of such
governing body adopts a resolution for affiliation and files the same in the same manner
and on the same conditions as in the case of an eligible employer other than a city or
township.

    (3) If a participating employer is paying or has paid the salary or other compensation
of the judge, clerk or any other employee, whether elective or appointive, such judge, clerk
or other employee of such court or courts, whether elective or appointive, shall be deemed
an employee of the participating employer. Such employee shall be governed by the pro-
visions governing other eligible employees of such participating employer. Any participating
employer which has not heretofore included such employees as eligible employees under
the retirement system shall on the first day of the month coinciding with or following the
effective date of this act include such employees if otherwise eligible as eligible employees
under the retirement system. Such employees, whether elective or appointive, if employed
on the employer's entry date may elect to pay forthwith the employee contributions from
the employer's entry date and thereby be governed by the provisions governing other em-
ployees employed by the participating employer on entry date except that no such employee
shall be considered to be new employees on the first day of the month coinciding with or
following the effective date of this act and commence making employee contributions in
compliance with other provisions governing the retirement system and the participating
employer shall make the employer contributions in accordance with the alternative elected
by the employee and other provisions governing the retirement system.

    (4) Any employer whose employees are covered by social security and who otherwise
do not meet the provisions of subsection (13) of K.S.A. 74-4902 and amendments thereto
may elect to affiliate under this section upon meeting the definition of a governmental entity
or instrumentality as determined by the system. If, subsequent to such determination, the
United States internal revenue service determines that such employer does not meet the
definition of a governmental entity or instrumentality, such affiliation shall be null and void
and all employee accrued rights associated with such affiliation shall be null and void and
the system shall refund such amounts presently credited to each employee's account and
an equivalent amount to the employer for each employee. The provisions of this subsection
shall apply to current and future participating employers.

    (5) For affiliations on and after January 1, 1999, any eligible employer, prior to the filing
of an application for affiliation under this system, shall request the board of trustees to submit
a proposal for such affiliation including an estimate of the employer's contribution rate
necessary to comply with the actuarial standard of this system. Such eligible employer shall
furnish all necessary data from which such proposal is prepared, and shall pay all costs
involved.

    Sec. 15. K.S.A. 1997 Supp. 74-4911, as amended by section 28 of 1998 Senate Bill No.
382, is hereby amended to read as follows: 74-4911. (1) Any employee of a participating
employer other than an elected official on the entry date of such employer shall be a member
of the system on either the entry date or the first day of the payroll period coinciding with
or following the completion of one year of service, whichever is later. For purposes of this
act occasional breaks in service which shall not exceed an aggregate of 10 days in any such
year shall not constitute a break in service for purposes of determining the membership
date of such employee.

    (2) Except as otherwise provided in this subsection, any employee other than an elected
official who is employed by a participating employer after the entry date of such employer
shall be a member of the system on the first day of the payroll period coinciding with or
following completion of one year of continuous service. For purposes of this act, occasional
breaks in service which shall not exceed an aggregate of 10 days in any such year shall not
constitute a break in continuous service for purposes of determining the membership date
of such employee. For purposes of this subsection, any employee of a local governmental
unit which has its own pension plan who becomes an employee of a participating employer
as a result of a merger or consolidation of services provided by local governmental units,
which occurred on January 1, 1994, may count service with such local governmental unit in
determining whether such employee has met the one year of continuous service requirement
contained in this subsection.

    (3) Any employee who is an elected official and is eligible to join the system shall file,
within 90 days after taking the oath of office, an irrevocable election to become or not to
become a member of the system. Such election shall become effective immediately upon
making such election, if such election is made within 14 days of taking the oath of office or,
otherwise, on the first day of the first payroll period of the first quarter following receipt of
the election in the office of the retirement system. In the event that such elected official
fails to file the election to become a member of the retirement system, it shall be presumed
that such person has elected not to become a member.

    (4) Except as otherwise required by USERRA, any employee other than an elected
official who is in military service or on leave of absence on the entry date of such employee's
employer shall become a member of the system upon returning to active employment or
on the first day of the payroll period coinciding with or following the completion of one
year of service, whichever is later. For purposes of this act, occasional breaks in service
which shall not exceed an aggregate of 10 days in any such year shall not constitute a break
in service for purposes of determining the membership date of such employee.

    (5) Any employee of the state of Kansas other than an elected official, who is receiving
or is eligible for assistance by the state board of regents in the purchase of a retirement
annuity under K.S.A. 74-4925, and amendments thereto, and who becomes ineligible for
such assistance because such employee's position is reclassified to a position in the classified
service under the Kansas civil service act, or who becomes ineligible for such assistance
because such person accepts and transfers to a position in the classified service under the
Kansas civil service act shall be a member of the system on the first day of the payroll period
coinciding with or following the effective date of such reclassification or transfer. Any such
employee who became ineligible for such assistance prior to the effective date of this act
because of such a reclassification or such a transfer occurring prior to the effective date of
this act and who is not a member of the system on the effective date of this act shall be a
member of the system on the first day of the payroll period coinciding with or following the
effective date of this act.

    (6) Any employee of the state board of regents or of an educational institution under
its management, other than an elected official, who is a member of the system and who
becomes ineligible to be a member of the system because such employee's position is re-
classified to a position under the Kansas civil service act which is eligible for assistance by
the state board of regents in the purchase of a retirement annuity under K.S.A. 74-4925
and amendments thereto, or who becomes ineligible to be a member of the system because
such employee transfers to a position under the Kansas civil service act which is eligible for
such assistance, shall become eligible for such assistance in accordance with the provisions
of K.S.A. 74-4925 and amendments thereto, unless such employee files a written election
in the office of the retirement system, in the form and manner prescribed by the board of
trustees thereof, to remain a member of the system prior to the first day of the first complete
payroll period occurring after the effective date of such reclassification or transfer. Failure
to file such written election shall be presumed to be an election not to remain a member
of the system and to become eligible for assistance by the state board of regents in the
purchase of a retirement annuity under K.S.A. 74-4925 and amendments thereto. Such
election, whether to remain a member of the system or to become eligible for such assis-
tance, shall be effective as of the effective date of such reclassification or transfer, and shall
be irrevocable.

    (7) Any elected official who at the time of becoming an elected official is already a
member of the system by being or having been an employee of a participating employer
shall continue as a member of the system.

    Sec. 16. K.S.A. 1997 Supp. 74-4913, as amended by section 33 of 1998 Senate Bill No.
382, is hereby amended to read as follows: 74-4913. (1) Prior service shall be credited as
follows:

    (a) A member shall receive full credit for continuous employment prior to the entry
date with such member's employer on the entry date. If the employee was also employed
on March 15, 1961, by the employer who is the employee's employer on the employee's
entry date of the year immediately preceding the entry date of that employer, then all such
previous employment, whether or not continuous, shall be credited; otherwise no credit
shall be granted for employment prior to a break in continuous employment. Any member
or retirant who has been credited with prior service as hereinbefore provided and who was
employed by any participating employer on March 15, 1961 of the year immediately pre-
ceding the entry date of that employer, may apply to the board on such forms as it may
prescribe for prior service credit with a participating employer other than the member's
entry date employer. Upon receipt of written verification of such employment from the
participating employer, the board may shall grant such additional prior service credit and
with respect to a retirant, shall adjust the amount of the retirement benefit accordingly
commencing with the next monthly benefit payment due following receipt of the written
verification, except that such retirant shall not be entitled to any retroactive adjustment in
the amount of such retirement benefit as a result of the board granting such additional prior
service credit. In the case of any person other than a retirant receiving a retirement benefit,
such person may make application for an adjustment in the benefit amount in the same
manner as a member or retirant, and in such case the adjustment in the benefit amount
shall be determined by the board upon the advice of the actuary, and shall commence with
the next monthly benefit payment due following receipt of the written verification;

    (b) leaves of absence and military service shall not be counted as breaks in continuous
employment; however, military service which is immediately preceded and followed by
employment with a participating employer shall be credited, except that after July 1, 1974,
not more than five years' credit for military service shall be granted hereunder to the extent
required under USERRA, but leaves of absence shall not be credited;

    (c) any member who was employed in the Kansas state employment service, now a
section of the Kansas division of employment security, during any of the time the Kansas
state employment service was loaned by the state to the federal government (January 1,
1942, for the duration of the emergency period of world war II, which service was returned
to the state by the federal government effective November 16, 1946) shall be entitled to
prior service credit for the time so employed during the period stated for any service ren-
dered under the jurisdiction of the United States employment service for the federal gov-
ernment in like manner as if the employment service had remained under the jurisdiction
of the state of Kansas;

    (d) any member who is not otherwise eligible for service credit as provided for in sub-
section (1)(a) may be granted credit for the service upon the attainment of 38 quarters of
participating service;

    (e) any member who was employed by the university of Wichita prior to July 1, 1964,
shall be entitled to prior service credit for such time of employment under the Kansas public
employees retirement system, when such employment is not the basis for other pension
rights.

    (2) Participating service shall be credited as follows: (a) A member shall receive credit
for participating service with a participating employer in accordance with the rules and
regulations established by the board of trustees, except that no more than one calendar
quarter of participating service shall be credited for any employment within any one calendar
quarter;

    (b) leaves of absence and military service shall not count as a break in continuous em-
ployment. In the case of a leave of absence, the member shall leave such member's accu-
mulated contribution on deposit with the fund; however, the period of military service shall
be credited, except that after July 1, 1974, not more than five years' credit for military
service shall be granted hereunder to the extent required under USERRA, but leaves of
absence shall not be credited. Employees who enter the military service from their em-
ployment after the employer's entry date and who have not completed one year of service
at the time of their entry into the military service, shall not become members of the retire-
ment system until they return to the employment of that or another participating employer.
In the case of such employee whose combined public employment and military service does
not equal one year at the time of such employee's return to employment, the date of mem-
bership shall be the first day of the payroll period coinciding with or following the completion
of one combined public employment and military year of service. Such service shall be
granted in accordance with this section;

    (c) a period of retirement under the system or a period of total disability, immediately
followed by employment with a participating employer, shall not count as a break in con-
tinuous employment, except that such periods while not employed shall not be credited as
participating service;

    (d) termination of employment, followed by employment with a participating employer
within five years after such termination, does not constitute a break in continuous employ-
ment if such person has not withdrawn such person's accumulated contribution. Such period
while not employed shall not be credited as participating service.

    (3) In determining the number of years of credited prior service or participating service
a fractional year of six months or more shall be considered as one year and a fractional year
of less than six months shall be disregarded.

    Sec. 17. K.S.A. 1997 Supp. 74-4914 is hereby amended to read as follows: 74-4914. (1)
The normal retirement date for a member of the system shall be the first day of the month
coinciding with or following termination of employment with any participating employer
not followed by employment with any participating employer within 30 days and the at-
tainment of age 65 or, commencing July 1, 1986, age 65 or age 60 with the completion of
35 years of credited service or at any age with the completion of 40 years of credited service,
or commencing July 1, 1993, any alternative normal retirement date already prescribed by
law or age 62 with the completion of 10 years of credited service or the first day of the
month coinciding with or following the date that the total of the number of years of credited
service and the number of years of attained age of the member is equal to or more than 85.
In no event shall a normal retirement date for a member be before six months after the
entry date of the participating employer by whom such member is employed. A member
may retire on the normal retirement date or on the first day of any month thereafter upon
the filing with the office of the retirement system of an application in such form and manner
as the board shall prescribe. Nothing herein shall prevent any person, member or retirant
from being employed, appointed or elected as an employee, appointee, officer or member
of the legislature. Elected officers may retire from the system on any date on or after the
attainment of the normal retirement date, but no retirement benefits payable under this act
shall be paid until the member has terminated such member's office.

    (2) No retirant shall make contributions to the system or receive service credit for any
service after the date of retirement.

    (3) Any member who is an employee of an affiliating employer pursuant to K.S.A. 74-
4954b and amendments thereto and has not withdrawn such member's accumulated con-
tributions from the Kansas police and firemen's retirement system may retire before such
member's normal retirement date on the first day of any month coinciding with or following
the attainment of age 55.

    (4) Any member may retire before such member's normal retirement date on the first
day of any month coinciding with or following termination of employment with any partic-
ipating employer not followed by employment with any participating employer within 30
days and the attainment of age 55 with the completion of 10 years of credited service, but
in no event before six months after the entry date, upon the filing with the office of the
retirement system of an application for retirement in such form and manner as the board
shall prescribe.

    (5) If a retirant who retired on or after July 1, 1988, is employed or appointed in or to
any position or office for which compensation for service is paid, during calendar years 1988
through 1990, in an amount equal to $6,000 or more in any one such calendar year; during
calendar year 1991, in an amount equal to $9,720 or more; during calendar year 1992, in
an amount equal to $10,200 or more; during calendar year 1993, in an amount equal to
$10,560 or more; during calendar year 1994, in an amount equal to $11,160 or more; or
during calendar year 1995 and all calendar years thereafter, in an amount equal to $11,280
$15,000 or more in any one such calendar year, by any participating employer for which
such retirant was employed or appointed during the final two years of such retirant's par-
ticipation, such retirant shall not receive any retirement benefit for any month for which
such retirant serves in such position or office. The participating employer shall report to the
system within 30 days of when the compensation paid to the retirant is equal to or exceeds
any limitation provided by this section. Any retirant employed by a participating employer
shall not make contributions nor receive additional credit under such system for such service
except as provided by this section. Upon request of the executive secretary of the system,
the secretary of revenue shall provide such information as may be needed by the executive
secretary to carry out the provisions of this act. The provisions of this subsection shall not
apply to retirants employed as substitute teachers or officers, employees, appointees or
members of the legislature or any other elected officials.

    (6) For purposes of this section, any employee of a local governmental unit which has
its own pension plan who becomes an employee of a participating employer as a result of a
merger or consolidation of services provided by local governmental units, which occurred
on January 1, 1994, may count service with such local governmental unit in determining
whether such employee has met the years of credited service requirements contained in
this section.

    Sec. 18. K.S.A. 1997 Supp. 74-4914e is hereby amended to read as follows: 74-4914e.
(1) As used in this section:

    (a) ``Correctional employee'' means any member of the system who is a security officer
or other employee of the department of corrections and who is in a position for which the
duties and responsibilities involve regular contact with inmates as certified by the secretary
of corrections;

    (b) ``disability'' means the total inability to perform permanently the duties of the po-
sition of a correctional employee in which the correctional employee was employed at the
time of disability;

    (c) ``service-connected'' means any physical or mental disability resulting from external
force, violence or disease occasioned by an act of duty as a correctional employee and
includes, for any correctional employee after five years of credited service, any death or
disability resulting from a heart disease or disease of the lung or respiratory tract, except
that in the event that the correctional employee ceases to be a contributing member except
by reason of a service-connected disability for a period of six months or more and then again
becomes a contributing member the provision relating to death or disability resulting from
a heart disease or disease of the lung or respiratory tract shall not apply until such correc-
tional employee has again become a contributing member for a period of not less than two
years or unless clear and precise evidence is presented that the heart disease or disease of
the lung or respiratory tract was in fact occasioned by an act of duty as a correctional
employee; and

    (d) ``final average salary'' means the average highest annual compensation paid to a
correctional employee for any three of the last five years of participating service immediately
preceding the date of disability, or if participating service is less than three years, then the
average annual compensation paid to the correctional employee during the full period of
participating service or if a correctional employee has less than one calendar year of partic-
ipating service the correctional employee's final average salary shall be computed by mul-
tiplying the correctional employee's highest monthly salary received in that year by 12.

    (2) If any active contributing correctional employee becomes totally and permanently
disabled due to service-connected causes as defined in subsection (1), such correctional
employee shall be retired and the following benefits shall become payable and shall continue
until the correctional employee's death or until the correctional employee recovers from
the disability if a report of the event in a form acceptable to the board is filed in the office
of the executive secretary of the board within 220 days after the date of the event or act of
duty causing such disability and an application for such benefit, in such form and manner
as the board shall prescribe, is filed by the correctional employee or the correctional em-
ployee's authorized representative in the office of the executive secretary of the board within
two years of the date of disability:

    (a) The correctional employee shall receive a retirement benefit equal to 50% of the
correctional employee's final average salary. Such benefit shall accrue from the day upon
which the correctional employee ceases to draw compensation.

    (b) Each of the correctional employee's unmarried children under the age of 18 years
or each of the correctional employee's children under the age of 23 years who are full-time
students as provided in K.S.A. 74-49,117 and amendments thereto shall receive an annual
benefit equal to 10% of the correctional employee's final average salary. Such benefit shall
accrue from the day upon which the correctional employee ceases to draw compensation
and shall end on the first day of the month in which each such child or children attains the
age of 18 years, die or marry, whichever occurs earlier or in which each such child or children
attains the age of 23 years, if such child or children are full-time students as provided in
K.S.A. 74-49,117 and amendments thereto.

    (c) In no case shall the total benefits payable under paragraphs (a) and (b) of this
subsection (2) be in excess of 75% of the correctional employee's final average salary.

    (d) In the event a correctional employee who is retired under paragraph (a) of this
subsection (2), dies within two years after the date of such retirement, then benefits may
be payable under subsection (2) of K.S.A. 74-4916 and amendments thereto.

    (e) In the event a correctional employee who is retired under paragraph (a) of this
subsection (2), dies more than two years after the date of such retirement, and the proximate
cause of such death is the service-connected cause from which the disability resulted, then
benefits may be payable under subsection (2) of K.S.A. 74-4916 and amendments thereto.

    (f) In the event a correctional employee who is retired under subsection (2) dies after
the date of retirement and no benefits are payable under paragraphs (d) and (e) the following
benefits shall be payable:
    (i) To the correctional employee's spouse, if lawfully wedded to the correctional employee
at the time of the correctional employee's death, a lump-sum benefit equal to 50% of the
correctional employee's final average salary at the time of the correctional employee's re-
tirement.
    (ii) To the correctional employee's spouse, if lawfully wedded to the correctional em-
ployee at the time of the correctional employee's death, an annual benefit equal to 50% of
the correctional employee's retirement benefit payable in monthly installments, to accrue
from the first day of the month following the correctional employee's date of death and
ending on the first day of the month in which the spouse dies. If there is no surviving spouse,
or if after the death of the spouse there remain one or more children under the age of 18
years or one or more children under the age of 23 years who is a full-time student as provided
in K.S.A. 74-49,117, and amendments thereto, the annual spouse's benefit shall be payable
in equal shares to such children and each child's share shall end on the first day of the month
in which such child attains the age of 18 years or dies, whichever occurs earlier or in which
such child attains the age of 23 years, if such child is a full-time student as provided in
K.S.A. 74-49,117, and amendments thereto.
    The provisions of this subsection shall apply in all cases of such correctional employees
who die after October 1, 1996.

    (3) If any correctional employee who is an active contributing member prior to such
correctional employee's normal retirement becomes totally and permanently disabled for a
period of 180 days from causes not service-connected, and not as the result of a willfully
negligent or intentional act of the correctional employee, such correctional employee shall
be retired and the following benefit shall become payable and shall continue until the cor-
rectional employee's death or until the correctional employee recovers from such disability
whichever occurs first if a report of the disability in a form acceptable to the board is filed
in the office of the executive secretary of the board within 220 days after the date of the
commencement of such disability and if an application for such benefit in such form and
manner as the board shall prescribe is filed in the office of the executive secretary of the
board within two years of the date of disability:

    A retirement benefit equal to 2% of the correctional employee's final average salary
multiplied by the number of years of credited service, except that such retirement benefit
shall be at least equal to 25% of the member's final average salary but not to exceed the
amount of the retirement benefit provided in paragraph (a) of subsection (2). Such benefit
shall not become payable until satisfactory evidence is presented to the board that the
correctional employee is and has been for a period of 180 days totally and permanently
disabled, but benefits shall accrue from the day upon which the correctional employee ceases
to draw compensation.

    (4) Any correctional employee who is employed for compensation by an employer other
than the department of corrections and whose disability is incurred in the course of such
other employment shall not be eligible for any of the benefits provided in subsection (3).

    (5) If a correctional employee becomes totally and permanently disabled and no benefits
are payable under subsections (2) or (3), the sum of the correctional employee's accumulated
contributions shall be paid to the correctional employee.

    (6) Any correctional employee receiving benefits under this section shall submit to med-
ical examination, not oftener than annually, by one or more physicians or any other practi-
tioners of the healing arts holding a valid license issued by Kansas state board of healing
arts, as the board of trustees may direct. If upon such medical examination the examiners
report to the board that the retirant is physically able and capable of resuming employment
with the participating employer from whose employment the correctional employee retired,
the disability benefits shall terminate. A retirant who has been receiving benefits under the
provisions of this section and who returns to employment of a participating employer shall
immediately commence accruing service credit which shall be added to that which has been
accrued by virtue of previous service.

    (7) Any retirant who has been receiving benefits under the provisions of this section for
a period of five years shall be deemed finally retired and shall not be subject to further
medical examinations, except that if the board of trustees shall have reasonable grounds to
question whether the retirant remains totally and permanently disabled, a further medical
examination or examinations may be required.

    (8) Refusal or neglect to submit to examination as provided in subsection (6) shall be
sufficient cause for suspending or discontinuing benefit payments under this section and if
such refusal or neglect shall continue for a period of one year, the correctional employee's
rights in and to all benefits under the system may be revoked by the board.

    (9) Any retirement benefits payable under the provisions of this section shall be in lieu
of all other benefits under the system.

    (10) Each correctional employee shall report to such member's participating employer
any event or act of duty causing disability within 200 days after such event or act of duty.
The department of corrections shall file in the office of the executive secretary of the board,
in a form acceptable to the board, a report of the event or act of duty causing disability
within 220 days after the event or act of duty.

    (11) Benefits payable under this section shall be reduced by the original amount of any
disability benefits received under the federal social security act or the workers compensation
act. For any correctional employee already retired on the effective date of this act, no
reduction of the original social security benefits shall be applicable to benefits paid prior to
the effective date of this act. In no case shall a correctional employee who is entitled to
receive benefits under this section receive less than $100 per month.

    (12) The provisions of this section shall apply to disabilities occurring after June 30,
1982, and prior to July 1, 1995. At the direction of the board of trustees, the actuary shall
conduct an experience evaluation of benefits payable under this section and the board shall
provide copies of such study to the governor and members of the legislature.

    (13) The provisions of K.S.A. 74-4927 and amendments thereto relating to insured dis-
ability benefits shall not be applicable to correctional employees subject to the provisions
of this section.

    (14) In the event a correctional employee who is retired under subsection (3) dies after
the date of retirement and no benefits are payable under that subsection, the following
benefits shall be payable:
    (i) To the correctional employee's spouse, if lawfully wedded to the correctional employee
at the time of the correctional employee's death, a lump-sum benefit equal to 50% of the
correctional employee's final average salary at the time of the correctional employee's re-
tirement.
    (ii) To the correctional employee's spouse, if lawfully wedded to the correctional em-
ployee at the time of the correctional employee's death, an annual benefit equal to 50% of
the correctional employee's retirement benefit payable in monthly installments, to accrue
from the first day of the month following the correctional employee's date of death and
ending on the first day of the month in which the spouse dies. If there is no surviving spouse,
or if after the death of the spouse there remain one or more children under the age of 18
years or one or more children under the age of 23 years who is a full-time student as provided
in K.S.A. 74-49,117, and amendments thereto, the annual spouse's benefit shall be payable
in equal shares to such children and each child's share shall end on the first day of the month
in which such child attains the age of 18 years or dies, whichever occurs earlier or in which
such child attains the age of 23 years, if such child is a full-time student as provided in
K.S.A. 74-49,117, and amendments thereto.
    The provisions of this subsection shall apply in all cases of such correctional employees
who die after October 1, 1996.

    Sec. 19. K.S.A. 1997 Supp. 74-4917 is hereby amended to read as follows: 74-4917. (1)
Upon termination of employment with a participating employer, not followed by employ-
ment with such participating employer or another participating employer within 30 days of
such termination, the member shall be paid an amount equal to the member's accumulated
contributions then on deposit with the system after making application in such form as may
be prescribed by the board, except that the system shall have a reasonable time to process
the application for withdrawal. The participating employer shall, upon giving a terminated
employee a withdrawal application, certify to the system all member contributions which
have not been reported previously. In the case of a death of an active member, the partic-
ipating employer shall certify to the system all member contributions which have not been
reported previously and remit such contributions if the participating employer has not sub-
mitted a monthly remittance for the terminating quarter. The participating employer shall
be responsible to the system for any overpayment or underpayment of member contribu-
tions made by the system relating to a withdrawal of accumulated contributions or a death
of an active member which is due to an inaccurate certification of all member contributions
which have not been reported to the system as required by this section made by the partic-
ipating employer. A leave of absence, a period of total disability or military service shall not
be considered a termination of employment unless the member withdraws accumulated
contributions.

    (2) Except as otherwise provided by this subsection, if such member has completed 10
years of credited service at date of termination, such member automatically shall be granted
a vested retirement benefit in the system, except that at any time prior to the commence-
ment of retirement benefit payments the member may withdraw accumulated contributions,
whereupon no other benefits shall be payable for such member's prior and participating
service credit. For purposes of this subsection, any employee of a local governmental unit
which has its own pension plan who becomes an employee of a participating employer as a
result of a merger or consolidation of services provided by local governmental units, which
occurred on January 1, 1994, may count service with such local governmental unit in de-
termining whether such employee has met the 10 years of credited service for vesting
requirement contained in this subsection. Eligibility of such member for retirement benefits
and procedures for making application for retirement benefits shall be in accordance with
K.S.A. 74-4914 and amendments thereto. Such member shall make application for retire-
ment in such form as may be prescribed by the board and retirement benefits shall accrue
from the first day of the month following receipt of such application. The amount of the
retirement benefit shall be determined as provided in K.S.A. 74-4915 and amendments
thereto.

    (3) Termination of employment of a member, followed by employment with a partici-
pating employer within five years after such termination, does not constitute a break in
continuous employment if such member has not withdrawn accumulated contributions.
Such period while not employed shall not be credited.

    (4) If, after the expiration of five years following the termination of employment, a
former member becomes an employee of such former member's former participating em-
ployer, or another participating employer, such former member shall be deemed to be a
new employee. If a member, who has a vested benefit again becomes an employee of a
participating employer, any credited service such member subsequently accrues shall be
added to that which had been vested by virtue of previous service. Eligibility of such member
for retirement benefits and procedures for making application for retirement benefits shall
be in accordance with K.S.A. 74-4914 and amendments thereto.

    Sec. 20. K.S.A. 1997 Supp. 74-4919a, as amended by section 38 of 1998 Senate Bill
No. 382, is hereby amended to read as follows: 74-4919a. (1) An employee of a participating
employer who becomes a member as provided in K.S.A. 74-4911 and amendments thereto,
after completion of one year of continuous employment as therein provided may purchase
participating service credit for such year of employment by making application therefor.
Such application and payment may be made at any time after the employee becomes a
member and continues to be employed by a participating employer. Any member of the
system who has not retired may purchase, subject to the provisions of section 83 and amend-
ments thereto, such service credit by paying the then present value of the retirement benefits
based on such service by means of a single lump-sum payment in the amount determined
by the actuary using the member's attained age and the actuarial assumptions and tables
currently in use by this retirement system. If an employee was employed before the partic-
ipating employer's entry date and did not become a member until the first day of the month
or the first day of the first payroll period, whichever is applicable, coinciding with or follow-
ing the completion of one year continuous employment, the member may purchase, subject
to the provisions of section 83 and amendments thereto, participating service credit for the
period from the participating employer's entry date until such member became a member
by paying to the system the then present value of the retirement benefits based on such
service by means of a single lump-sum payment in the amount determined by the actuary
using the member's attained age and the actuarial assumptions and tables currently in use
by this retirement system.

    Notwithstanding any other provision of this subsection, if an employee purchases such
participating service credit within 12 months of such employee's membership in the system,
such employee may purchase such participating service credit by making application there-
for and paying to the system a lump-sum amount equivalent to 4% of the compensation paid
to such member for personal services during such period. If an employee was employed for
a partial year after the participating employer's entry date and did not become a member
at that time, but became a member at a later date, the member may purchase, subject to
the provisions of section 83 and amendments thereto, participating service credit for such
partial year of employment by paying the then present value of the retirement benefits
based on such service by means of a single lump-sum payment in the amount determined
by the actuary using the member's attained age and the actuarial assumptions and tables
currently in use by this retirement system.

    (2) Any employee of the state of Kansas who was receiving or was eligible for assistance
by the state board of regents in the purchase of a retirement annuity under K.S.A. 74-4925
and amendments thereto, and who became ineligible for such assistance prior to the effec-
tive date of this act because such employee's position was reclassified to a position in the
classified service under the Kansas civil service act, or who became ineligible for such
assistance because such person accepted and transferred to a position in the classified service
under the Kansas civil service act, and who becomes a member of the system on the first
day of the payroll period coinciding with or following the effective date of this act in ac-
cordance with subsection (5) of K.S.A. 74-4911 and amendments thereto, may purchase,
subject to the provisions of section 83 and amendments thereto, participating service credit
for the period of employment from the effective date of such reclassification or transfer to
the date of such employee's membership in the system. Such employee may purchase such
participating service credit by making application therefor and paying to the system a lump-
sum amount equivalent to 4% of the compensation paid to such member for personal
services during such period by the state of Kansas or as provided in subsection (3). Such
application and payment may be made at any time after the employee becomes a member
and continues to be employed by a participating employer.

    (3) Except as otherwise provided in this subsection, any member of the retirement
system may purchase, subject to the provisions of section 83 and amendments thereto,
participating service credit for employment service as described in this section, if first com-
menced prior to January 1, 1996, by electing to effect such purchase by means of having
employee contributions as provided in K.S.A. 74-4919 and amendments thereto deducted
from such member's compensation at a percentage rate equal to two times or three times
the employee's rate of contribution as provided in K.S.A. 74-4919 and amendments thereto
for such periods of service, in lieu of a lump-sum amount as provided in this section. Such
deductions shall commence at the beginning of the quarter following such election and shall
remain in effect until all quarters of such service have been purchased. Subject to the
provisions of section 83 and amendments thereto, any person may make any such purchase
as described in this section, if first commenced in calendar year 1996 or thereafter, at an
additional rate of contribution, in addition to the employee's rate of contribution as provided
in K.S.A. 74-4919 and amendments thereto, based upon the member's attained age at the
time of purchase and using actuarial assumptions and tables in use by the retirement system
at such time of purchase, for such periods of service, in lieu of a lump-sum amount as
provided in this section. Such additional rate of contribution shall commence at the begin-
ning of the quarter following such election and shall remain in effect until all quarters of
such service have been purchased. Notwithstanding any other provision of this subsection,
any member of the retirement system, within 12 months of such member's membership date
in the system, may purchase participating service credit for employment service as described
in this section, by electing to effect such purchase by means of having employee contributions
as provided in K.S.A. 74-4919, and amendments thereto, deducted from such member's
compensation at a percentage rate equal to two times or three times the employee's rate of
contribution as provided in K.S.A. 74-4910, and amendments thereto, for such periods of
service, in lieu of a lump-sum amount as provided in this section. Such deductions shall
commence at the beginning of the quarter following such election and shall remain in effect
until all quarters of such service have been purchased. Such purchase must be completed
within 24 months of such membership date in the system.

    Sec. 21. K.S.A. 1997 Supp. 74-4919h, as amended by section 44 of 1998 Senate Bill
No. 382, is hereby amended to read as follows: 74-4919h. (1) In addition to any military
service credited under the provisions of K.S.A. 74-4913 or 74-4936 and amendments thereto,
or in the event that an active contributing member does not qualify for credit for military
service as defined in subsection (22) of K.S.A. 74-4902 and amendments thereto, such
member may purchase, subject to the provisions of section 83 and amendments thereto,
participating credit for periods of active service in the armed forces of the United States or
in the commissioned corps of the United States public health service and for periods of
service required to fulfill the requirements of section 651 of title 10, United States code,
which are not otherwise creditable, which when added to any creditable military service do
not exceed six years. Except as provided in subsection (4)(a) for such purchase of partici-
pating credit for such periods of such military service which is the basis for military pension
rights, such member shall be entitled to purchase one quarter of participating service credit
for each year of service required to fulfill the requirements of section 651 of title 10, United
States code. Except as otherwise provided in this section, such purchase shall be effected
by the member submitting proof of such service acceptable to the board and, if first com-
menced prior to January 1, 1996, electing in writing to have employee contributions as
provided in K.S.A. 74-4919 and amendments thereto deducted from such member's com-
pensation at a percentage rate equal to two times or three times the employee's rate of
contribution as provided in K.S.A. 74-4919 and amendments thereto for such periods of
service. Such deductions shall commence at the beginning of the quarter following such
election and shall remain in effect until all of the full quarters of such service have been
purchased. Any person may make any such purchase as described in this section, subject to
the provisions of section 83 and amendments thereto, if first commenced in calendar year
1996 or thereafter, at an additional rate of contribution, in addition to the employee's rate
of contribution as provided in K.S.A. 74-4919 and amendments thereto, based upon the
member's attained age at the time of purchase and using actuarial assumptions and tables
in use by the retirement system at such time of purchase, for such periods of service, in
lieu of a lump-sum amount as provided in this section. Such additional rate of contribution
shall commence at the beginning of the quarter following such election and shall remain in
effect until all quarters of such service have been purchased.

    (2) (a) Such purchase of participating service credit must be completed prior to such
member's retirement.

    (b) For members purchasing such participating service credit on or after July 1, 1993,
whose purchase is completed within five years before such member's retirement, subject to
the provisions of section 83 and amendments thereto, such member shall pay the actuarially
determined amount by means of a single lump-sum payment or equal annual payments
which shall be completed prior to retirement. The lump-sum payment or annual payments
shall be determined by the system's actuary by using the member's current annual salary at
the time, actuarial assumptions and tables currently in use by the system and the member's
attained age. Any member who purchases such participating service credit and who does
not make the lump-sum payment or annual payments as required by this subsection shall
have any previously credited service under this section voided and such member shall be
refunded such member's payments previously made for such purchase plus interest. The
provisions of this subsection shall not apply to any member who is employed by an institution
that is closed or abolished or otherwise ceases operations or that is scheduled for such
closure, abolition or cessation of operations and has a budget reduction imposed that is
associated with such closure, abolition or cessation of operations, and who is laid off from
employment with such institution for the reason of such closure, abolition or cessation. As
used in this subsection, ``institution'' means Topeka state hospital or Winfield state hospital
and training center; and ``laid off'' means, in the case of a state officer or employee in the
classified service under the Kansas civil service act, being laid off under K.S.A. 75-2948 and
amendments thereto and in the case of a state officer or employee in the unclassified service
under the Kansas civil service act, being terminated from employment with the state agency
by the appointing authority, except that ``laid off'' shall not include any separation from
employment pursuant to budget reduction or expenditure authority reduction and reduction
of F.T.E. positions under K.S.A. 75-6801 and amendments thereto.

    (3) In the event such member has elected to purchase participating service credit as
provided in K.S.A. 74-4919a to 74-4919e, inclusive, and any amendments thereto, the in-
creased employee contributions and purchase of participating service credit provided herein
shall not commence until after the purchase of participating service credit under K.S.A. 74-
4919a to 74-4919e, inclusive, and any amendments thereto, has been completed. If a mem-
ber terminates employment before completing the purchase of all participating service credit
as such member may be entitled to, such member shall only receive such credit for those
full quarters as the percentage rate equal to two times or three times the employee's rate
of contribution as provided in K.S.A. 74-4919 and amendments thereto or those full quarters
as the additional rate of contribution, in addition to the employee's rate of contribution as
provided in K.S.A. 74-4919 and amendments thereto has been deducted from such mem-
ber's compensation.

    (4) (a) Any member of the system who has not yet retired may purchase participating
service credit for military service as described in this section which is the basis for military
pension rights at an additional rate of contribution in addition to the employee's rate of
contribution as provided in K.S.A. 74-4919 and amendments thereto, based upon the mem-
ber's attained age at the time of purchase and using actuarial assumptions and tables in use
by the retirement system at the time of such purchase. Such additional rate of contribution
shall commence at the beginning of the quarter following such election and shall remain in
effect until all quarters of such service have been purchased. Any such member may pur-
chase, subject to the provisions of section 83 and amendments thereto, participating service
credit for military service as described in this section by electing to effect such purchase by
means of a single lump-sum payment in lieu of employee contributions as provided in this
section. The lump-sum payment shall be an amount determined by the actuary using the
member's then current annual rate of compensation, or if not actively employed, the mem-
ber's annual rate of compensation when last participating, the actuarial assumptions and
tables currently in use by the retirement system and the member's attained age.

    (b) Any member of the retirement system who has not retired may purchase, subject
to the provisions of section 83 and amendments thereto, participating service credit for
military service as described in this section which is not the basis for military pension rights
by electing to effect such purchase by means of a single lump-sum payment in lieu of
employee contributions as provided in this section. The lump-sum payment shall be an
amount determined by the actuary using the member's then current annual rate of com-
pensation, or if not actively employed, the member's annual rate of compensation when last
participating, the actuarial assumptions and tables currently in use by the retirement system
and the member's attained age.

    Sec. 22. K.S.A. 74-4919i, as amended by section 45 of 1998 Senate Bill No. 382, is
hereby amended to read as follows: 74-4919i. Any person who becomes a member of the
Kansas public employees retirement system pursuant to subsection (14) of K.S.A. 74-4902,
subsection (4) of K.S.A. 74-4932, K.S.A. 74-4911c, K.S.A. 74-4911d or K.S.A. 74-4919k and
amendments thereto, may elect to purchase additional benefits for any service performed
during the period that such person was barred from membership in the Kansas public
employees retirement system, except that no person shall purchase additional benefits for
any service which is the basis or will become the basis for retirement credit or benefits
under a retirement annuity under the provisions of K.S.A. 74-4925 and amendments thereto.
As used in this section, ``annual compensation'' means the rate of annual compensation being
paid to such member by the participating employer on the date of application to purchase
additional benefits. At the election of the member the benefit for each year of service shall
be equal to either 1% or 1.75% of the final average salary of any such member. For any
member who elected to purchase service credit as provided in this section prior to the
effective date of this act at the 1% rate, such member may elect to purchase such service
credit at an additional amount of .75% of final average salary of such member in a lump-
sum amount as otherwise provided in this subsection. Such member may purchase additional
benefits by making application therefor at least three years prior to date of retirement and,
subject to the provisions of section 83 and amendments thereto, by making at an additional
rate of contribution in addition to the employee's rate of contribution as provided in K.S.A.
74-4919 and amendments thereto, based upon the member's attained age at the time of
purchase and using actuarial assumptions and tables in use by the retirement system at the
time of such purchase. Such additional rate of contribution shall commence at the beginning
of the quarter following such election and shall remain in effect until all quarters of such
service have been purchased. Any such member may purchase service as described in this
section by electing to effect such purchase by means of a single lump-sum payment in lieu
of employee contributions as provided in this section in an amount equal to the then present
value of the benefits being purchased as determined by the actuary using the member's
attained age, annual compensation at the time of purchase and the actuarial assumptions
and tables then in use by the system. The lump-sum payment shall be made immediately
upon being notified of the amount due. The benefit for each such year of service shall be
equal to 1% of the annual compensation at the time the member purchases such additional
benefits.

    Sec. 23. K.S.A. 1997 Supp. 74-4919n, as amended by section 49 of 1998 Senate Bill
No. 382, is hereby amended to read as follows: 74-4919n. Any employee of a participating
employer who is a member of the Kansas public employees retirement system, who was
previously employed in another state in nonfederal governmental employment and which
service otherwise meets the requirements of an employee as prescribed in subsection (14)
of K.S.A. 74-4902 or subsection (4) of K.S.A. 74-4932 and amendments thereto, may elect
to purchase, subject to the provisions of section 83 and amendments thereto, prior service
for such out-of-state nonfederal governmental employment. At the election of the member,
the benefit for each such year of employment shall be equal to either 1% or 1.75% of the
final average salary of any such member. For any member who elected to purchase service
credit as provided in this section prior to the effective date of this act at the 1% rate, such
member may elect to purchase such service credit at an additional amount of .75% of final
average salary of such member in a lump-sum amount as otherwise provided in this sub-
section. Such member may purchase such prior service by making application therefor prior
to date of retirement at an additional rate of contribution in addition to the employee's rate
of contribution as provided in K.S.A. 74-4919 and amendments thereto, based upon the
member's attained age at the time of purchase and using actuarial assumptions and tables
in use by the retirement system at the time of such purchase. Such additional rate of con-
tribution shall commence at the beginning of the quarter following such election and shall
remain in effect until all quarters of such service have been purchased. Subject to the
provisions of section 83 and amendments thereto, any such member may purchase such
prior service as described in this section by electing to effect such purchase by means of a
single lump-sum payment in lieu of employee contributions as provided in this section in
an amount equal to the then present value of the benefits being purchased as determined
by the actuary using the member's attained age, annual compensation at the time of purchase
and the actuarial assumptions and tables then in use by this system. The lump-sum payment
shall be made immediately upon being notified of the amount due.

    Sec. 24. K.S.A. 1997 Supp. 74-4919p is hereby amended to read as follows: 74-4919p.
Any member may purchase prior service for periods of service in the United States peace
corps which commenced on or after January 1, 1962. At the election of the member, the
benefit for each such period of service shall be equal to either 1% or 1.75% of the final
average salary of any such member. For any member who elected to purchase service credit
as provided in this section prior to the effective date of this act at the 1% rate, such member
may elect to purchase such service credit at an additional amount of .75% of final average
salary of such member in a lump-sum amount as otherwise provided in this subsection. Such
member may purchase such prior service by making application therefor prior to date of
retirement at an additional rate of contribution in addition to the employee's rate of con-
tribution as provided in K.S.A. 74-4919 and amendments thereto, based upon the member's
attained age at the time of purchase and using actuarial assumptions and tables in use by
the retirement system at the time of such purchase. Such additional rate of contribution
shall commence at the beginning of the quarter following such election and shall remain in
effect until all quarters of such service have been purchased. Any such member may pur-
chase prior service as described in this section by electing to effect such purchase by means
of a single lump-sum payment in lieu of employee contributions as provided in this section
in an amount equal to the then present value of the benefits being purchased as determined
by the actuary using the member's attained age, annual compensation at the time of purchase
and the actuarial assumptions and tables then in use by this system. The lump-sum payment
shall be made immediately upon being notified of the amount due. No participating em-
ployer shall pay the cost, or any part thereof, of any prior service authorized to be purchased
by a member under this section. The provisions of this section shall be effective on and
after July 1, 1996.

    Sec. 25. K.S.A. 1997 Supp. 74-4919q is hereby amended to read as follows: 74-4919q.
Any employee of a participating employer who is a member of the Kansas public employees
retirement system, who was previously employed as an employee of the memorial union
corporation which is affiliated with Emporia state university, may elect to purchase prior
service for such employment. At the election of the member, the benefit for each such year
of employment shall be equal to either 1% or 1.75% of the final average salary of any such
member. For any member who elected to purchase service credit as provided in this section
prior to the effective date of this act at the 1% rate, such member may elect to purchase
such service credit at an additional amount of .75% of final average salary of such member
in a lump-sum amount as otherwise provided in this subsection. Such member may purchase
such prior service by making application therefor prior to date of retirement at an additional
rate of contribution in addition to the employee's rate of contribution as provided in K.S.A.
74-4919 and amendments thereto, based upon the member's attained age at the time of
purchase and using actuarial assumptions and tables in use by the retirement system at the
time of such purchase. Such additional rate of contribution shall commence at the beginning
of the quarter following such election and shall remain in effect until all quarters of such
service have been purchased. Any such member may purchase prior service as described in
this section by electing to effect such purchase by means of a single lump-sum payment in
lieu of employee contributions as provided in this section in an amount equal to the then
present value of the benefits being purchased as determined by the actuary using the mem-
ber's attained age, annual compensation at the time of purchase and the actuarial assump-
tions and tables then in use by this system. The lump-sum payment shall be made imme-
diately upon being notified of the amount due. No participating employer shall pay the cost,
or any part thereof, of any prior service authorized to be purchased by a member under
this section. The provisions of this section shall be effective on and after July 1, 1996.

    Sec. 26. K.S.A. 1997 Supp. 74-4920 is hereby amended to read as follows: 74-4920. (1)
(a) Upon the basis of each annual actuarial valuation and appraisal as provided for in sub-
section (3)(a) of K.S.A. 74-4908 and amendments thereto, the board shall certify, on or
before July 15 of each year, to the division of the budget in the case of the state and to the
agent for each other participating employer an actuarially determined estimate of the rate
of contribution which will be required, together with all accumulated contributions and
other assets of the system, to be paid by each such participating employer to pay all liabilities
which shall exist or accrue under the system, including amortization of the actuarial accrued
liability over a period of 40 years commencing on July 1, 1993, and the actuarial accrued
liability for members of the faculty and other persons who are employed by the state board
of regents or by educational institutions under its management assisted by the state board
of regents in the purchase of retirement annuities as provided in K.S.A. 74-4925 and amend-
ments thereto, as provided in this section. The actuarial accrued liability for all participating
employers other than the state board of regents relating to members of the faculty and other
persons described in this section, shall be amortized by annual payments that increase 4%
for each year remaining in the amortization period. For all participating employers other
than the state board of regents relating to members of the faculty and other persons de-
scribed in this section, the projected unit credit actuarial cost method shall be used in annual
actuarial valuations, commencing with the 1993 valuation, to determine the employer con-
tribution rates that shall be certified by the board. The actuarial accrued liability for mem-
bers of the faculty and other persons described in this subsection assisted by the state board
of regents in the purchase of retirement annuities as provided in K.S.A. 74-4925 and amend-
ments thereto shall be amortized by annual level payments over a period of 10 11 years
commencing July 1, 1993. Such certified rate of contribution shall be based on the standards
set forth in subsection (3)(a) of K.S.A. 74-4908 and amendments thereto and shall not be
based on any other purpose outside of the needs of the system.

    (b) (i) For employers affiliating on and after January 1, 1999, upon the basis of an
annual actuarial valuation and appraisal of the system conducted in the manner provided
for in K.S.A. 74-4908 and amendments thereto, the board shall certify, on or before July 15
of each year to each such employer an actuarially determined estimate of the rate of con-
tribution which shall be required to be paid by each such employer to pay all of the liabilities
which shall accrue under the system from and after the entry date as determined by the
board, upon recommendation of the actuary. Such rate shall be termed the employer's par-
ticipating service contribution and shall be uniform for all participating employers. Such
additional liability shall be amortized over a period of 34 years commencing on July 1, 1999,
by annual payments that increase 4% for each year remaining in the amortization period.
For all participating employers described in this section, the projected unit credit actuarial
cost method shall be used in annual actuarial valuations to determine the employer contri-
bution rates that shall be certified by the board.
    (ii) The board shall determine for each such employer separately an amount sufficient
to amortize over a period of not to exceed 34 years commencing July 1, l999, all liabilities
for prior service costs which shall have accrued at the time of entry into the system. On the
basis of such determination the board shall annually certify to each such employer separately
an actuarially determined estimate of the rate of contribution which shall be required to be
paid by that employer to pay all of the liabilities for such prior service costs. Such rate shall
be termed the employer's prior service contribution.

    (2) The division of the budget and the governor shall include in the budget and in the
budget request for appropriations for personal services the sum required to satisfy the state's
obligation under this act as certified by the board and shall present the same to the legislature
for allowance and appropriation.

    (3) Each other participating employer shall appropriate and pay to the system a sum
sufficient to satisfy the obligation under this act as certified by the board.

    (4) Each participating employer is hereby authorized to pay the employer's contribution
from the same fund that the compensation for which such contribution is made is paid from
or from any other funds available to it for such purpose. Each political subdivision, other
than an instrumentality of the state, which is by law authorized to levy taxes for other
purposes, may levy annually at the time of its levy of taxes, a tax which may be in addition
to all other taxes authorized by law for the purpose of making its contributions under this
act and, in the case of cities and counties, to pay a portion of the principal and interest on
bonds issued under the authority of K.S.A. 12-1774 and amendments thereto by cities lo-
cated in the county, which tax, together with any other fund available, shall be sufficient to
enable it to make such contribution. In lieu of levying the tax authorized in this subsection,
any taxing subdivision may pay such costs from any employee benefits contribution fund
established pursuant to K.S.A. 12-16,102 and amendments thereto. Each participating em-
ployer which is not by law authorized to levy taxes as described above, but which prepares
a budget for its expenses for the ensuing year and presents the same to a governing body
which is authorized by law to levy taxes as described above, may include in its budget an
amount sufficient to make its contributions under this act which may be in addition to all
other taxes authorized by law. Such governing body to which the budget is submitted for
approval, may levy a tax sufficient to allow the participating employer to make its contri-
butions under this act, which tax, together with any other fund available, shall be sufficient
to enable the participating employer to make the contributions required by this act.

    (5) The rate of contribution certified to a participating employer as provided in this
section shall apply during the fiscal year of the participating employer which begins in the
second calendar year following the year of the actuarial valuation. For the fiscal year com-
mencing in calendar year 1993, the employer rate of contribution for the state of Kansas
and for participating employers under K.S.A. 74-4931 and amendments thereto shall be
3.1% of the amount of compensation upon which members contribute during the period.
For the fiscal year commencing in calendar year 1994, the employer rate of contribution
for the state of Kansas and for participating employers under K.S.A. 74-4931 and amend-
ments thereto shall be 3.2% of the amount of compensation upon which members contribute
during the period. For the fiscal year commencing in calendar year 1994, the employer rate
of contribution for participating employers other than the state of Kansas shall be 2.2% of
the amount of compensation upon which members contribute during the period. Except as
specifically provided in this section, for the fiscal year commencing in calendar year 1995,
the rate of contribution certified to a participating employer shall in no event exceed such
participating employer's contribution rate for the immediately preceding fiscal year by more
than 0.1% of the amount of compensation upon which members contribute during the
period. Except as specifically provided in this section, for fiscal years commencing in cal-
endar year 1996 and in each subsequent calendar year, the rate of contribution certified to
the state of Kansas shall in no event exceed the state's contribution rate for the immediately
preceding fiscal year by more than 0.2% of the amount of compensation upon which mem-
bers contribute during the period. Except as specifically provided in this section, for fiscal
years commencing in calendar year 1997 and in each subsequent calendar year, the rate of
contribution certified to participating employers other than the state of Kansas shall in no
event exceed such participating employer's contribution rate for the immediately preceding
fiscal year by more than 0.15% of the amount of compensation upon which members con-
tribute during the period. There shall be an employer rate of contribution certified to the
state of Kansas and participating employers under K.S.A. 74-4931 and amendments thereto.
There shall be a separate employer rate of contribution certified to all other participating
employers other than the state of Kansas.

    (6) The actuarial cost of any legislation enacted in the 1994 session of the Kansas leg-
islature will be included in the June 30, 1994, actuarial valuation in determining contribution
rates for participating employers.

    (7) The actuarial cost of the provisions of section 50 will be included in the June 30,
1998, actuarial valuation in determining contribution rates for participating employers. The
actuarial accrued liability incurred for the provisions of section 50 shall be amortized over
15 years.
    (8) The board with the advice of the actuary may fix the contribution rates for partici-
pating employers joining the system after one year from the first entry date or for employers
who exercise the option contained in K.S.A. 74-4912 and amendments thereto at rates
different from the rate fixed for employers joining within one year of the first entry date.

    (9) For employers affiliating on and after January 1, 1999, the rates of contribution
certified to the participating employer as provided in this section shall apply during the
fiscal year immediately following such certification, but the rate of contribution during the
first year following the employer's entry date shall be equal to 7% of the amount of com-
pensation on which members contribute during the year. Any amount of such first year's
contribution which may be in excess of the necessary current service contribution shall be
credited by the board to the respective employer's prior service liability.

    (8) (10) Employer contributions shall in no way be limited by any other act which now
or in the future establishes or limits the compensation of any member.

    (9) (11) Notwithstanding any provision of law to the contrary, each participating em-
ployer shall remit quarterly, or as the board may otherwise provide, all employee deductions
and required employer contributions to the executive secretary for credit to the Kansas
public employees retirement fund within 20 three days after the end of the period covered
by the remittance or within 25 days after forms or written instructions from the system were
mailed by the system to such employer, whichever is later by electronic funds transfer.
Remittances of such deductions and contributions received after such date are delinquent.
Delinquent payments due under this subsection shall be subject to interest at the rate
established for interest on judgments under subsection (a) of K.S.A. 16-204 and amendments
thereto. At the request of the board, delinquent payments which are due or interest owed
on such payments, or both, may be deducted from any other moneys payable to such em-
ployer by any department or agency of the state.

    Sec. 27. K.S.A. 1997 Supp. 74-4921 is hereby amended to read as follows: 74-4921. (1)
There is hereby created in the state treasury the Kansas public employees retirement fund.
All employee and employer contributions shall be deposited in the state treasury to be
credited to the Kansas public employees retirement fund. The fund is a trust fund and shall
be used solely for the exclusive purpose of providing benefits to members and member
beneficiaries and defraying reasonable expenses of administering the fund. Investment in-
come of the fund shall be added or credited to the fund as provided by law. All benefits
payable under the system, refund of contributions and overpayments, purchases or invest-
ments under the law and expenses in connection with the system unless otherwise provided
by law shall be paid from the fund. The director of accounts and reports is authorized to
draw warrants on the state treasurer and against such fund upon the filing in the director's
office of proper vouchers executed by the chairperson or the executive secretary of the
board. As an alternative, payments from the fund may be made by credits to the accounts
of recipients of payments in banks, savings and loan associations and credit unions. A pay-
ment shall be so made only upon the written authorization and direction of the recipient of
payment and upon receipt of such authorization such payments shall be made in accordance
therewith. Orders for payment of such claims may be contained on (a) a letter, memoran-
dum, telegram, computer printout or similar writing, or (b) any form of communication,
other than voice, which is registered upon magnetic tape, disc or any other medium designed
to capture and contain in durable form conventional signals used for the electronic com-
munication of messages.

    (2) The board shall have the responsibility for the management of the fund and shall
discharge the board's duties with respect to the fund solely in the interests of the members
and beneficiaries of the system for the exclusive purpose of providing benefits to members
and such member's beneficiaries and defraying reasonable expenses of administering the
fund and shall invest and reinvest moneys in the fund and acquire, retain, manage, including
the exercise of any voting rights and disposal of investments of the fund within the limitations
and according to the powers, duties and purposes as prescribed by this section.

    (3) Moneys in the fund shall be invested and reinvested to achieve the investment
objective which is preservation of the fund to provide benefits to members and member
beneficiaries, as provided by law and accordingly providing that the moneys are as productive
as possible, subject to the standards set forth in this act. No moneys in the fund shall be
invested or reinvested if the sole or primary investment objective is for economic devel-
opment or social purposes or objectives.

    (4) In investing and reinvesting moneys in the fund and in acquiring, retaining, man-
aging and disposing of investments of the fund, the board shall exercise the judgment, care,
skill, prudence and diligence under the circumstances then prevailing, which persons of
prudence, discretion and intelligence acting in a like capacity and familiar with such matters
would use in the conduct of an enterprise of like character and with like aims by diversifying
the investments of the fund so as to minimize the risk of large losses, unless under the
circumstances it is clearly prudent not to do so, and not in regard to speculation but in
regard to the permanent disposition of similar funds, considering the probable income as
well as the probable safety of their capital.

    (5) Notwithstanding subsection (4): (a) Total investments in common stock may be made
in the amount of up to 60% of the total book value of the fund;

    (b) the board may invest or reinvest moneys of the fund in alternative investments if
the following conditions are satisfied:

    (i) The total of such alternative investments does not exceed more than 5% of the total
investment assets of the fund. If the total of such alternative investments exceeds more than
5% of the total investment assets of the fund on the effective date of this act, the board
shall not invest or reinvest any moneys of the fund in alternative investments until the total
of such alternative investments is less the 5% of the total investment assets of the fund
subject to the 5% limitation contained in this subsection. Nothing in this subsection requires
the board to liquidate or sell the system's holdings in any alternative investment held by the
system on the effective date of this act, unless such liquidation or sale would be in the best
interest of the members and beneficiaries of the system and be prudent under the standards
contained in this section. The 5% limitation contained in this section shall not have been
violated if the total of such alternative investments exceeds 5% of the total investment assets
of the fund as a result of market forces acting to increase the value of such alternative
investments relative to the rest of the system's investments; however, the board shall not
invest or reinvest any moneys of the fund in alternative investments until the total of such
alternative investments is less than 5% of the total investment assets of the fund subject to
the 5% limitation contained in this subsection;

    (ii) if in addition to the system, there are at least two other sophisticated investors, as
defined by section 301 of the securities and exchange act of 1933;

    (iii) the system's share in any individual alternative investment is limited to an invest-
ment representing not more than 20% of any such individual alternative investment;

    (iv) the system has received a favorable and appropriate recommendation from a qual-
ified, independent expert in investment management or analysis in that particular type of
alternative investment;

    (v) the alternative investment is consistent with the system's investment policies and
objectives as provided in subsection (6);

    (vi) the individual alternative investment does not exceed more than 2.5% of the total
alternative investments made under this subsection. If the alternative investment is made
pursuant to participation by the system in a multi-investor pool, the 2.5% limitation con-
tained in this subsection is applied to the underlying individual assets of such pool and not
to investment in the pool itself. The total of such alternative investments made pursuant to
participation by the system in any one individual multi-investor pool shall not exceed more
than 20% of the total of alternative investments made by the system pursuant to this sub-
section. Nothing in this subsection requires the board to liquidate or sell the system's hold-
ings in any alternative investments made pursuant to participation by the system in any one
individual multi-investor pool held by the system on the effective date of this act, unless
such liquidation or sale would be in the best interest of the members and beneficiaries of
the system and be prudent under the standards contained in this section. The 20% limitation
contained in this subsection shall not have been violated if the total of such investment in
any one individual multi-investor pool exceeds 20% of the total alternative investments of
the fund as a result of market forces acting to increase the value of such a multi-investor
pool relative to the rest of the system's alternative investments; however, the board shall
not invest or reinvest any moneys of the fund in any such individual multi-investor pool until
the value of such individual multi-investor pool is less than 20% of the total alternative
investments of the fund;

    (vii) the board has received and considered the investment manager's due diligence
findings submitted to the board as required by subsection (6)(c); and

    (viii) prior to the time the alternative investment is made, the system has in place pro-
cedures and systems to ensure that the investment is properly monitored and investment
performance is accurately measured.

    For purposes of this act, ``alternative investment'' means nontraditional investments out-
side the established nationally recognized public stock exchanges and government securities
market. Alternative investments shall include, but not be limited to, private placements,
venture capital, partnerships, limited partnerships and leveraged buyout partnerships;

    (c) except as otherwise provided, the board may invest or reinvest moneys of the fund
in real estate investments if the following conditions are satisfied:

    (i) If, in addition to the system, there are at least two other sophisticated investors, as
defined by section 301 of the securities and exchange act of 1933;
    (ii) the system's share in any individual real estate investment is limited to an investment
representing not more than 20% of any such individual real estate investment;
    (iii) The system has received a favorable and appropriate recommendation from a qual-
ified, independent expert in investment management or analysis in that particular type of
real estate investment;

    (iv) (ii) the real estate investment is consistent with the system's investment policies and
objectives as provided in subsection (6); and

    (v) the total of such real estate investments made pursuant to participation by the system
in any one individual multi-investor pool shall not exceed more than 20% of the total of real
estate investments made by the system pursuant to this subsection. Nothing in this subsec-
tion requires the board to liquidate or sell the system's holdings in any real estate investments
made pursuant to participation by the system in any one individual multi-investor pool held
by the system on the effective date of this act, unless such liquidation or sale would be in
the best interest of the members and beneficiaries of the system and be prudent under the
standards contained in this section. The 20% limitation contained in this subsection shall
not have been violated if the total of such investment in any one individual multi-investor
pool exceeds 20% of the total real estate investments of the fund as a result of market forces
acting to increase the value of such a multi-investor pool relative to the rest of the system's
real estate investments; however, the board shall not invest or reinvest any moneys of the
fund in any such individual multi-investor pool until the value of such individual multi-
investor pool is less than 20% of the total real estate investments of the fund;
    (vi) (iii) the board has received and considered the investment manager's due diligence
findings submitted to the board as required by subsection (6)(c);

    (vii) prior to the time the real estate investment is made, the system has in place pro-
cedures and systems to ensure that the investment is properly monitored and investment
performance is accurately measured; and
    (viii) the provisions of this subsection shall not apply to any real estate investment held
by the system on July 1, 1992; and

    (d) the board shall not invest or reinvest moneys of the fund in any banking institution,
savings and loan association or credit union which positions the system as a shareholder or
owner of such banking institution, savings and loan association or credit union.

    (6) Subject to the objective set forth in subsection (3) and the standards set forth in
subsections (4) and (5) the board shall formulate policies and objectives for the investment
and reinvestment of moneys in the fund and the acquisition, retention, management and
disposition of investments of the fund. Such policies and objectives shall include:

    (a) Specific asset allocation standards and objectives;

    (b) establishment of criteria for evaluating the risk versus the potential return on a
particular investment;

    (c) a requirement that all investment managers submit such manager's due diligence
findings on each investment to the board or investment advisory committee for approval or
rejection prior to making any alternative investment;

    (d) a requirement that all investment managers shall immediately report all instances
of default on investments to the board and provide the board with recommendations and
options, including, but not limited to, curing the default or withdrawal from the investment;
and

    (e) establishment of criteria that would be used as a guideline for determining when no
additional add-on investments or reinvestments would be made and when the investment
would be liquidated.

    The board shall review such policies and objectives, make changes considered necessary
or desirable and readopt such policies and objectives on an annual basis.

    (7) The board may enter into contracts with one or more persons whom the board
determines to be qualified, whereby the persons undertake to perform the functions spec-
ified in subsection (2) to the extent provided in the contract. Performance of functions under
contract so entered into shall be paid pursuant to rates fixed by the board subject to pro-
visions of appropriation acts and shall be based on specific contractual fee arrangements.
The system shall not pay or reimburse any expenses of persons contracted with pursuant to
this subsection, except that after approval of the board, the system may pay approved in-
vestment related expenses subject to provisions of appropriation acts. The board shall re-
quire that a person contracted with to obtain commercial insurance which provides for errors
and omissions coverage for such person in an amount to be specified by the board, provided
that such coverage shall be at least the greater of $500,000 or 1% of the funds entrusted to
such person up to a maximum of $10,000,000. The board shall require a person contracted
with to give a fidelity bond in a penal sum as may be fixed by law or, if not so fixed, as may
be fixed by the board, with corporate surety authorized to do business in this state. Such
persons contracted with the board pursuant to this subsection and any persons contracted
with such persons to perform the functions specified in subsection (2) shall be deemed to
be agents of the board and the system in the performance of contractual obligations.

    (8) (a) In the acquisition or disposition of securities, the board may rely on the written
legal opinion of a reputable bond attorney or attorneys, the written opinion of the attorney
of the investment counselor or managers, or the written opinion of the attorney general
certifying the legality of the securities.

    (b) The board shall employ or retain qualified investment counsel or counselors or may
negotiate with a trust company to assist and advise in the judicious investment of funds as
herein provided.

    (9) (a) Except as provided in subsection (7) and this subsection, the custody of money
and securities of the fund shall remain in the custody of the state treasurer, except that the
board may arrange for the custody of such money and securities as it considers advisable
with one or more member banks or trust companies of the federal reserve system or with
one or more banks in the state of Kansas, or both, to be held in safekeeping by the banks
or trust companies for the collection of the principal and interest or other income or of the
proceeds of sale. The services provided by the banks or trust companies shall be paid pur-
suant to rates fixed by the board subject to provisions of appropriation acts.

    (b) The state treasurer and the board shall collect the principal and interest or other
income of investments or the proceeds of sale of securities in the custody of the state
treasurer and pay same when so collected into the fund.

    (c) The principal and interest or other income or the proceeds of sale of securities as
provided in clause (a) of this subsection (9) shall be reported to the state treasurer and the
board and credited to the fund.

    (10) The board shall with the advice of the director of accounts and reports establish
the requirements and procedure for reporting any and all activity relating to investment
functions provided for in this act in order to prepare a record monthly of the investment
income and changes made during the preceding month. The record will reflect a detailed
summary of investment, reinvestment, purchase, sale and exchange transactions and such
other information as the board may consider advisable to reflect a true accounting of the
investment activity of the fund.

    (11) The board shall provide for an examination of the investment program annually.
The examination shall include an evaluation of current investment policies and practices
and of specific investments of the fund in relation to the objective set forth in subsection
(3), the standard set forth in subsection (4) and other criteria as may be appropriate, and
recommendations relating to the fund investment policies and practices and to specific
investments of the fund as are considered necessary or desirable. The board shall include
in its annual report to the governor as provided in K.S.A. 74-4907, and amendments thereto,
a report or a summary thereof covering the investments of the fund.

    (12) (a) The legislative post auditor shall conduct an annual financial-compliance audit
of the system, performance audits of the system as prescribed by this section and under the
Kansas governmental operations law, and such other audits as are directed by the legislative
post audit committee under th