AGRICULTURE AND NATURAL RESOURCES

County Fair buildings - Annual Tax Levy Limit

SB 19 amends a statute that allows a tax levy to be made by the county commissioners of any county having a county fair association officially recognized by the Secretary of Agriculture, at the request of the fair association, to make a tax levy for the purpose of acquiring ground for a county fair building or the erection and maintenance of county fair buildings. The bill increases the levy cap for these county fair purposes from $3,000 annually to $33,000 annually.

Petroleum Storage Tank Law - Amendments

SB 190 requires operators of underground petroleum storage tanks to complete training training levels as follows:

• Persons having primary responsibility for on-site operation and maintenance of underground storage tank systems;
• Persons having daily on-site responsibility for the operation and maintenance of underground systems; and
• Daily, on-site employees having primary responsibility for addressing emergencies presented by a spill or release from storage systems.

With respect to financial responsibility, the bill deletes a statutory provision and requires that contractors maintain evidence of financial responsibility in an amount equal to or greater than $1,000,000 per occurrence and $2,000,000 annual aggregate for the cost of corrective action directly related to releases caused by improper manufacture, installation, or repair of tanks or piping. This requirement will not apply to the installation or repair of a fuel tank or piping performed by the owner or operator of a fuel tank or piping. The Secretary of Health and Environment is permitted to adopt rules and regulations to implement this portion of the bill.

In addition, the bill permits the funds in the Underground Petroleum Storage Tank Release Trust Fund to be used for administrative, technical and legal costs; for additional enforcement; and for reporting and operator training as required by the federal Energy Policy Act of 2005.

The bill also extends the sunset provision for reimbursement of those owners of above ground storage tank facilities or bulk plants for costs incurred in upgrading a facility or for closure expenses from October 30, 2007 until July 1, 2009. Finally, the bill extends the sunset date for the Kansas Essential Fuels Supply Trust Fund Compensation Advisory Board and the Kansas Essential Fuels Supply Trust Fund from July 1, 2010 until July 1, 2012.

Wildlife and Parks Commission - Appointments

HB 2002 modifies the requirements relating to members of the Kansas Wildlife and Parks Commission. The bill requires that one member of the Commission come from each Fish and Wildlife Administration Region, as established by the Department of Wildlife and Parks.

Conservation districts - State Assistance Limitation

HB 2048 amends a portion of law dealing with conservation districts raising the limit of authorized state assistance from a maximum of $10,000 per district to a maximum of $25,000 per district. The bill also makes this limitation applicable to fiscal years 2008 and thereafter, and makes it subject to appropriations.

Superfund Site - Relocation Assistance Trust

HB 2168 creates a state public trust to administer relocation assistance, and to acquire, hold, and dispose of property located within the boundaries of a superfund site located in Cherokee County. Superfund sites include those properties listed on the National Priorities List established under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).

The trust will have five trustees appointed by the Governor. The members will be subject to Senate confirmation and serve staggered terms of four years ending on March 15. Vacancies will be filled by gubernatorial appointment to serve the unexpired term.

The bill allows the Kansas Department of Health and Environment to make grants to the trust to provide relocation assistance and purchase property. Participation in the program is to be voluntary.

The trust also is allowed to provide grants to public school districts located within the affected community which are adversely impacted by the relocations.

Cloud County Fair board

HB 2208 amends a section of law dealing with the Cloud County Fair Board. Specifically, the bill allows the Fair Board of Cloud County to be appointed by the board of county commissioners rather than elected at the annual meeting of the county extension council. Members of the board are to be appointed from the county commissioner districts, if possible. Members are able to serve unlimited consecutive terms of three years.

Kansas Propane Safety and Licensing Act - Exemption from Licensure

HB 2294 exempts those persons who have earned a certificate either under the provisions of law dealing with plumbing contractors and master and journeyman plumbers (KSA 12-1508) or those provisions dealing with contractors and master and journeymen who are heating, ventilation, and air conditioning mechanics (KSA 12-1541) from all licensure and training provisions of the Kansas Propane Safety and Licensing Act.

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CHILDREN AND YOUTH

Uniform Child Abduction Prevention Act

SB 18 enacts the Uniform Child Abduction Prevention Act (UCAPA). It provides courts with guidelines to follow during custody disputes and divorce proceedings, helps courts identify families at risk for abduction, and provides measures to prevent the abduction of children where the evidence establishes a credible risk that a child may be abducted.

The bill attempts to prevent abduction of children by parents or others acting with them by providing judges with information on risk factors and allowing judges to order appropriate measures or restrictions to prevent child abduction. The major factors include: has the parent previously abducted or attempted to abduct the child; has the parent threatened to abduct the child; has the parent recently engaged in activities that may indicate a planned abduction such as abandoning employment, selling a residence, terminating a lease, liquidating assets, applying for a passport for the respondent, a family member or the child, or seeking the child’s birth certificate or school or medical records; has the parent engaged in domestic violence; has the parent refused to follow a child-custody determination; does the parent lack strong familial, financial, emotional, or cultural ties to the state or to the U.S; does the parent have strong ties to another state or country; or the parent demonstrates other conduct the court considers relevant to the risk of abduction. These risk factors are based on research done by the U.S. Department of Justice and the American Bar Association.

If a judge finds a credible risk of abduction, the court may issue an abduction prevention order. The order may impose measures such as travel restrictions, a prohibition against removing the child from this state, restrictions on the child’s passport, and restrictions on custody or visitation. If a judge finds a credible risk of imminent abduction, the court may issue a warrant to take physical custody of the child.

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ECONOMIC DEVELOPMENT

Qualified Industrial Manufacturer Act

SB 164 creates the Qualified Industrial Manufacturer Act. Under the provisions of the Act, a manufacturer will receive up to $2.0 million in Kansas income tax withholding paid by the manufacturer to its employees. The maximum period is ten years.

In order to qualify for the Kansas withholding revenue, a qualified manufacturer is a person, corporation, partnership, or other entity engaged in the manufacturing of hydraulics in Reno County, Kansas, and is a company that anticipates paying at least $12.5 million in annual gross compensation to employees in Kansas.

The qualified industrial manufacturer is required to make application with the Secretary of Commerce to receive the tax benefits award under the conditions of the Act. The application is to include evidence that the applicant is a qualified industrial manufacturer and that the entity agrees to make certain improvements to such manufacturer’s plant located in Hutchinson, Kansas. Once the agreement between the manufacturer and Secretary is executed, the Kansas payroll withholding taxes will be credited to the Special Qualified Industrial Manufacturer Fund. In the first three years of the agreement, 90.0 percent of the qualified industrial manufacturer’s Kansas payroll withholding taxes will be paid out and for the following seven years, 40.0 percent of the qualified industrial manufacturer’s withholding taxes will be paid out.

The qualified industrial manufacturer will not be allowed to participate in the Investments in Major Projects and Comprehensive Training Act programs. If the qualified manufacturer fails to comply, at any time during the ten-year period, with the terms set forth in the agreement, the Secretary may terminate the agreement, and the manufacturer will not be entitled to further distributions from the Fund.

The Secretary of Commerce is required to annually submit to the Governor, the Senate Committee on Commerce, the House Committee on Economic Development and Tourism, the Joint Committee on Economic Development, or any successor committees, a report that includes an estimate of jobs created and jobs preserved by the investments; and an estimate of the multiplier effect on the Kansas economy of the investments made under conditions of this Act. The Secretary also is required to conduct an annual review of the activities required by the Act to ensure that benefits issued are in compliance with the provisions of the Act.

Finally, any violation of the reporting requirements is grounds for loss of designation as a qualified industrial manufacturer.

Kansas Firefighters Museum

HB 2270 designates the Kansas Firefighters Museum located in Wichita, Kansas, as the official state Kansas Firefighters Museum.

Insurance Company Tax Credits

HB 2274 allows certain insurance companies to claim the Business and Job Development Credit and the High Performance Incentive Program Credit against premium tax. An insurance company is allowed to claim such credits if:

Such credit is earned but not used by a related corporation not required to pay the premium tax;

When the entity earning the credits is engaged in a contract that is subject to the federal acquisition regulations for services related to the administration of the federal Medicare program and has engaged in the investment in a qualified business facility with respect to the acquisition or retention of a contract to administer the federal Medicare program.

The bill also defines related corporation as a corporation or partnership controlled by the insurance company with at least an 80.0 percent interest. The provisions of the Act expire on July 1, 2012; however, any credit unused but earned as of the July 1, 2012 date may continue to be used until exhausted.

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EDUCATION

Elementary and Secondary

Treatment Facilities for Mentally-Ill Youth

SB 95 corrects and updates state law regarding treatment facilities focused on helping mentally ill youth. Specifically, facilities identified as juvenile detention facilities will be identified as psychiatric residential treatment facilities, with the statutory change. This clarification is being made at the recommendation of the Centers for Medicare and Medicaid Services (CMS) as necessary to ensure continued federal funding for these facilities.

In addition, statutory language will be updated related to pupils enrolled in USD 259 (Wichita) but who reside at the Judge James V. Riddel Boys Ranch.

Second Enrollment Count date

HB 2159 allows all school districts to conduct a second count of students on February 20,2008, and February 20, 2009. This second count is permitted for students who are dependents of full-time active members of the military service or dependents of the military reserve who have been ordered to active duty for at least 30 consecutive days. This second count enrollment is to be used in calculating a district's state aid, in cases where the number of pupils has increased by at least 25 pupils or by a number equal to one percent or more of the district's enrollment between September 20 (the required annual enrollment count date) and February 20.

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EMPLOYERS AND EMPLOYEES

Employment Security Law - Contribution Rate

SB 83 amends employment security law by adjusting employer contribution rates beginning in FY 2007 and for all subsequent years as follows:

• For new employers, the rate is be 4.0 percent of wages paid during the calendar year except for new employers engaged in the construction industry will pay a 6.0 percent rate. (Under prior law, the rates were between 0.462 to 0.591 percent for new employers.)
• For experienced employers with a positive balance in the employer account at the Kansas Department of Labor, the rate is the following:
• Rate Groups 1 through 5 - Zero
• Rate Groups 6 through 28 - 50.0 percent of current rate
• Rate Groups 29 through 51 - 60 percent of current rate

The bill provides that if the Employment Security Trust Fund balance falls below a prescribed amount, in any subsequent years, the reduction is eliminated and the rates return to the previous percentages.

The bill also amends the definition of "employer" under the employment security law to allow for the employer to establish the unemployment tax account at the initial registration. Under prior law, the employer could only establish the account in any calendar quarter in which a minimum of $1,500 in wages has been paid.

Finally, the bill provides for an exemption to the waiting week requirement to any new claims fled on or after July 1, 2007, by claimants who become unemployed as a result of an employer terminating business operations within the state of Kansas, declaring bankruptcy or initiating a work force reduction pursuant to the federal Warren Act. In addition, the bill provides the Kansas Department of Labor rule and regulation authority for the exemption.

The bill also provides that the employees affected by the exemption will be eligible to receive compensation for the waiting period upon the fourth week of consecutive unemployment.

Employment Security Law - Owner-Operators of Motor vehicles

Sb 235 makes changes to the Employment Security Law statutes. The bill clarifies that individuals who are owner-operators of a motor vehicle leased or contracted to a licensed motor carrier are not considered employees of the licensed motor carrier, unless the lease agreement or the contract specifics that the owner-operator is an employee of the licensed motor carrier. The bill requires owner-operators to pay their own federal social security tax, federal unemployment tax, and federal withholding tax when they are not considered employees of the licensed motor carrier.

Workforce development

Sb 288 requires the Monitoring Unit of the Division of Workforce Development, Kansas Department of Commerce, to annually report, on or before January 15, to the standing committees on economic development on the monitoring activities of the Division during the preceding calendar year, any problems within workforce development activities, compliance with federal and state requirements and any other matters concerning workforce development which the Unit deems appropriate.

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ENERGY AND UTILITIES

State Energy Plan - Modifications and New Requirements

Sb 326 amends a portion of law which requires the Kansas Corporation Commission(KCC) to develop a state energy plan in accordance with federal requirements.

The bill:

• Requires the KCC to prepare an emergency management plan (energy allocation and curtailment of energy consumption) for natural gas and electric energy to be adopted during activation of Emergency Support Function 12 of the Kansas Response Plan;
• Removes requirements for the KCC to collect and compile data on energy resources, monitor energy resources supplies in the state, cooperate in the implementation of any energy rationing program, prepare annual reports describing energy emergency management programs, and make and enter into certain contracts for implementing the provisions of this section of the law:
• Modifies statutory language regarding the Governor's potential declaration of an energy emergency by recognizing the law enacting the Kansas Response Plan, but continues to allow the Governor to declare that a state of disaster emergency exists when the supply of natural gas and electricity is inadequate; and
• Modifies the requirement that the KCC adopt rules and regulations establishing allocation of natural gas and electric energy or their curtailment of consumption during an activation of Emergency Support Function 12 of the Kansas Response Plan.

Fuel blending - Exception for Consumer Use

HB 2013 amends a section of law dealing with the requirements for motor-vehicle fuels and special fuel manufacturer's licenses to clarify that no motor-vehicle fuels or special fuel manufacturer's license is required for any consumer who is blending motor-vehicle fuel or special fuel purchased for the consumer's own use, and not for resale, from a distributor or retailer who is the holder of a valid, unsuspended and unrevoked motor-vehicle fuels or special fuels distributor's or retailer's license.

Utility Security Costs

HB 2034 extends, until July 1, 2011, the law authorizing the Kansas Corporation Commission (KCC) to allow electric and gas utilities to recover from their customers the cost of prudent expenditures for security measures. The statute would have expired on July 1, 2007.

Energy Efficiency of Buildings

HB 2036 amends two statutes regarding energy efficiency of certain commercial, industrial,and residential buildings. In regard to commercial and industrial buildings, the bill replaces the 2003 International Energy Conservation Code with the 2006 version of that Code as the energy efficiency standard for new buildings.

In regard to residential structures, the bill amends prior law to limit the requirement for disclosure of energy efficiency information to single family units and multifamily units of four or fewer units. In addition, the statute is amended to require disclosure of energy efficiency information to the buyer or prospective buyer prior to the signing of the contract to purchase and prior to closing, if changes have occurred or are requested, and at any other time, upon request. For new residential structures that are completed and suitable for occupancy, but unsold, the bill requires that the builder or seller provide the completed disclosure form to the buyer or prospective buyer when the residence is shown and at any time upon request. Finally, the bill creates a new residential energy efficiency disclosure form which enables comparison of the residence being purchased with the 2006 International Residential Code/International Energy Conservation Code (IRC/IECC) standard for the two climate zones within the state. The new form also allows the builder to provide additional information.

Renewable Energy

HB 2039 amends the definition of renewable energy in several statutes by deleting the word "thermal" from the definition of renewable resources or technologies.

Electric Transmission Related Charges

HB 2220 amends prior law regarding transmission charges for retail electric service.The bill specifically authorizes two procedures for approval of transmission-related charges by the Kansas Corporation Commission (KCC). The bill also authorizes approval of transmission charges that result from "interim" federal transmission cost orders.

Under the bill, transmission charges may be determined by the KCC in response to a general retail rate application or as part of a full rate case. Under prior law, as interpreted by Kansas courts, transmission delivery charges could not be determined during a rate case.

In regard to transmission charges resulting from federal orders, the bill authorizes the KCC to order changes to a utility's transmission charge if a federal transmission rate order changes. Under prior law, utilities had discretion regarding changing their transmission delivery charges when a federal transmission rate order was changed.

The bill will become effective upon publication in the Kansas Register.

Energy Conservation Measures - Financing by Utilities

Sub. for HB 2278 authorizes electric and natural gas utilities to enter into agreements with utility customers and their landlords whereby the utility will finance the purchase and installation of energy conservation measures. Customers who participate in the program will pay for the financing and other costs through their monthly utility bills. The amount included in utility bills for that purpose must be approved by the Kansas Corporation Commission (KCC).

Under the bill, a utility's liability for the energy conservation measures will be limited to that required by the KCC. Further, utilities will be prohibited from providing certain warranties regarding measures. The bill does not limit rights or remedies of utility customers and their landlords against other parties to a transaction involving the purchase and installation of energy conservation measures.

Kansas Electric Transmission Authority Act - Amendments

HB 2306 amends the Kansas Electric Transmission Authority Act to enable the Authority to conduct its day-to-day business without the necessity of providing notice and waiting for responses as is required for planning, financing, constructing, and owning transmission facilities. Notifcation and response timelines established in prior law that apply to the planning, financing, constructing,and owning transmission facilities are unchanged by the bill.

The bill will become effective upon publication in the Kansas Register.

Carbon Dioxide Reduction Act

HB 2419 creates the Carbon Dioxide Reduction Act to provide tax incentives for the sequestration of carbon dioxide through underground storage. The Act also provides for Kansas Corporation Commission (KCC) regulation of underground carbon dioxide facilities.

The bill creates tax incentives by exempting from property tax any carbon dioxide capture, sequestration and utilization property and any electric generation unit which captures and sequesters all carbon dioxide and other emissions. The property tax exemption is available beginning with tax year 2008. The exemption for a particular facility is available from the time of purchase or the start of construction or installation and for five taxable years following completion of construction or installation of the property. Carbon dioxide capture, sequestration or utilization property is defined in the bill as machinery and equipment used to capture man-made carbon dioxide or to convert carbon dioxide into one or more products; carbon dioxide injection wells; and machinery and equipment used to recover carbon dioxide from sequestration.

The bill also provides for accelerated depreciation of carbon dioxide capture, sequestration or utilization machinery and equipment. That equipment, located in Kansas, may be depreciated for income tax purposes over a ten-year period (55 percent the first year and 5 percent each of the subsequent nine years). The accelerated depreciation is available beginning with tax year 2008.

The Act makes the Kansas Corporation Commission (KCC) responsible for regulating both existing and future underground carbon dioxide sequestration. By July 1,2008, the KCC must establish rules and regulations providing for the safe and secure injection and maintenance of underground storage of carbon dioxide. The administrative penalty for violation of the regulatory provisions of the Act is a maximum of $10,000 per violation per day. In addition, the KCC is authorized to adopt rules and regulations establishing fees for permitting, monitoring and inspecting carbon dioxide injector wells and underground storage facilities. Fees collected by the KCC pursuant to the bill will be remitted to the Carbon Dioxide and Underground Storage Fund, created by the bill.

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FINANCIAL INSTITUTIONS

Bank Branching - Industrial Loan Company (ILC) Limitation

SB 137 enacts new law to prohibit banks from establishing a branch bank at the premises or property where an affiliate of the bank engages in commercial activities.

Credit Union Services Organization Investments

HB 2114 amends a law that allows for investment in a credit union services organization(CUSO) to provide that in addition to capital stock corporations (existing law), credit union services organizations could be structured as limited liability companies and limited partnerships. Credit unions would be permitted to make loans to CUSOs, subject to rules and regulations of the state Credit Union Administrator.

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HEALTH

Healing Arts - Limitations on Prescribing Certain Substances

SB 62 amends one of the statutes in the Healing Arts Act that makes it unlawful for persons licensed to practice medicine and surgery and mid-level practitioners (advanced registered nurse practitioners and physician assistants authorized to prescribe) to prescribe, administer,sell, dispense, or supply any amphetamine or sympathomimetic amine designated in SchedulesII, III, or IV of the Uniform Controlled Substances Act, except for those conditions enumerated in the statute. The amendment removes the requirement that a prescription order indicate in the prescriber's own handwriting the purpose for which the drug is being given. Adequate documentation of the purpose for which the drug is prescribed, dispensed, or administered is still to be maintained in the patient's medical record.

The bill becomes effective on publication in the Kansas Register.

Prescription Refills

SB 63 amends a statute that is a part of The Pharmacy Act of the State of Kansas. The amendment deletes authority for the refill of a prescription written to authorize refills “at will” after the expiration of one year from the time the prescription was issued if the prescriber determines continued refilling does not present a medical risk to the patient for whom the prescription was written. Pursuant to the amended statute, the authority to refill a prescription is limited to the date stated by the prescriber or one year from the date of issuance, whichever occurs first.

The bill becomes effective on publication in the Kansas Register.

Mortuary Arts

SB 72 amends two of the statues under which funeral directors are licensed and regulated by the Board of Mortuary Arts. In addition to making technical corrections to the existing statutes,the amendments expand and clarify the definition of “funeral director,” and expand and clarify the grounds for disciplinary action against a licensee.

Healing Arts

Sub. for Sb 82 amends two statutes that are a part of the Healing Arts Act and creates a new statute pertaining to the practice of the healing arts. The bill creates a definition of “healing arts school,” amends one of the definitions of persons who are not unlawfully practicing the healing arts, and creates a new statute that exempts a healing arts school that meets the criteria set out in the statute, from any prohibition on the practice of the healing arts by any general corporation.

Board of Nursing - Licensing Amendments

SB 105 amends four acts that apply to persons licensed and regulated by the Board of Nursing. Statutes pertaining to licensed professional nurses, licensed practical nurses, advanced registered nurse practitioners, nurse anesthetists, and mental health technicians are amended to:

• Change the statutory language regarding license renewal notification by the Board of Nursing from "mail an application" to "send a notice," for all licensees of the Board;
• Change the statutory language concerning continuing education so specified licensees in nursing and specified mental health technicians would no longer be required to complete continuing education for the first renewal period after licensure;
• Require all nursing and mental health technician licensees to notify the Board of Nursing, within 30 days, of any final conviction of felonies and misdemeanors specified in rules and regulations to be promulgated by the Board; and
• Define the term "conviction" for the purposes of the amendments relating to notification to the Board.

Nursing Practice by Graduates

SB 106 amends a current statute that is a part of the Act under which registered professional nurses and practical nurses are licensed, to delete a provision that allows graduates of approved nursing schools to practice nursing for up to 120 days prior to receiving the results of the first licensure examination scheduled following their graduation. The bill becomes effective on October 1, 2007.

Assistant Funeral directors

SB 179 amends one of the statutes in the Act under which funeral directors, assistant funeral directors, embalmers, and funeral facilities are regulated and licensed. The amendments allow assistant funeral directors to be licensed only after an examination, the manner and form of which is to be determined by the Board of Mortuary Arts. An applicant for a license to be an assistant funeral director has to be a graduate of an accredited high school or has obtained the equivalent of a high school education after the effective date of the bill.

Persons licensed as assistant funeral directors as of December 31, 2007, or persons who are registered apprentice funeral directors are exempt from the new mandatory examination and education requirements set out in the bill.

A statute that sets out the maximum fees the Board of Mortuary Arts may set for various examinations, licenses, and facility licenses is amended to add an assistant funeral director's examination fee to those the Board of Mortuary Arts may fix by rules and regulations.

Healing Arts billing

SB 285 amends the statute in the Healing Arts Act that enumerates those acts which,if committed by a person licensed to practice the healing arts, constitute either professional incompetence or unprofessional conduct and which subject the licensee to disciplinary action by the Board of Healing Arts. The amendment adds a new practice to those that constitute unprofessional conduct, i.e.,charging, billing, or otherwise soliciting payment from a patient for an atomic pathology services if such services are not personally rendered by the licensee or under the direct supervision of the licensee. The term, anatomic pathology services, is defined in the amendment.

Alcohol and drug Addiction

Sub. for SB 354 combines into one Act, two separate but parallel Acts that concern alcohol and drug addiction. The prior law in Article 40 of Chapter 65 of the Kansas Statutes Annotated concerned the development of plans for and standards to be met in the prevention, care, and treatment of persons addicted to alcohol, while the statutes found in Article 46 of Chapter 65 concerned the development of plans for and standards to be met in the prevention, care and treatment of persons addicted to drugs. Both Acts are administered by the Secretary of Social and Rehabilitation Services. The substitute bill creates a new Act to be known as the Alcohol or Other Drug Addiction Treatment Act, which includes amended statutes now appearing in Article 40 of Chapter 65 and new statutes created by the bill. The parallel statutes in Article 46 are repealed.

The amendments to existing statutes generally add the term "alcohol or other drug addiction" to replace references to alcoholics and intoxicated persons, make terminology consistent throughout the statutes, name the Secretary of Social and Rehabilitation Services as the state agency responsible for the prevention and treatment of alcohol and other drug addiction, and provide for uniform definitions.

The bill continues the license application fees in existence until changed by rules and regulations, creates a new statute that requires moneys received from license fees to be remitted to the State Treasurer who is to credit 20 percent to the State General Fund and the remainder to the Other State Fees Fund of the Department of Social and Rehabilitation Services, and creates a new statute that authorizes the Secretary to deny, suspend, or revoke a license when there is a substantial failure to comply with standards adopted pursuant to the Act. The bill amends an existing statute to require that persons suffering from alcohol or other drug addiction be assessed to determine the appropriateness of treatment and receive treatment in the least restrictive treatment environment.

New statutes created by the bill provide that rules and regulations adopted by the Secretary under the provisions of either Article 40 or 46 of Chapter 65 in effect on the day preceding the effective date of the bill, be continued in force until amended or revoked and that licenses issued pursuant to KSA 65-4603, which is repealed, continue to be effective for the license period for which they were issued. For the period commencing on July 1, 1998, and ending on the effective date of the new Act, any action taken by the Secretary of Social and Rehabilitation Services under statutes specified in the bill are to be deemed authorized and done in compliance with the provisions of the statutes in existence at the time of the performance of such duty and are validated.

Sub. for SB 354 also amends a statute in the Care and Treatment Act for Persons With an Alcohol or Substance Abuse Problems to expand the definition of"treatment facility" to include certain persons licensed by the Behavioral Sciences Regulatory Board. The effect of the amendment is the exemption of such persons from licensure requirements as a treatment facility if such licensed individuals are not primarily engaged in the treatment of persons who are incapacitated by alcohol or other drug abuse.

A statute that relates to the disposition of the fines, penalties, and forfeitures remitted by district courts to the State Treasurer monthly is amended to increase the amount credited to the Community Alcoholism and Intoxication Programs Fund from 2.01 percent to 3.01 percent.

Kansas board of Pharmacy - Meetings and Elections

HB 2096 amends laws governing the meetings and elections of the Kansas Board of Pharmacy by removing the requirement that the annual meeting to elect officers be held in June. The bill also removes a requirement that the Board meet, at least once per year, for the purpose of examining applicants for licensure as pharmacists.

Continuing Education Requirements - Social Workers

HB 2181 reduces the continuing education required for a social worker to obtain licensure renewal from 60 hours to 40 hours.

BSRB - Out-of-state Licensees, Temporary Permits

HB 2182 enacts new law and amends existing law to allow the Behavioral Sciences Regulatory Board (BSRB) to issue temporary permits for out-of-state licensees. The temporary permit would be valid for no more than 15 days per year. The Board is allowed to extend the practice time allotment for an additional 15 days upon written application and for good cause shown. The Board is allowed to charge a permit fee of up to $200 for applicants in each of the professional groups it regulates and a fee up to $200 for any extension of the permit.

The bill also allows the Board, in accordance with the Kansas Administrative Procedures Act, to issue cease and desist orders or assess a fine in an amount up to $1,000, or both, on professionals who engage in practice without complying with the requirements for obtaining a temporary permit.

Two statutes governing the issuance of temporary permits for certain professional groups regulated by the Board are amended by the bill to remove provisions applicable to nonresidents providing services in Kansas and a nonresident permit fee. The bill also designates KSA 74-5361 through KSA 74-5375 as the Licensure of Masters Level Psychologists Act.

Dental Practices Act - License Renewal

HB 2216 amends a statute in the Dental Practices Act that governs license renewal for dentists and dental hygienists by creating a staggered system of renewals. The bill authorizes the Kansas Dental Board to designate the year in which licenses expire and to renew licenses for less than two years in order to create a staggered renewal system - allowing groups of both dentist and hygienist licensees to renew in the same year. Under prior law, dental hygienists licensees renewed in odd-numbered years and dentists renewed in even-numbered years.

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HOMELAND SECURITY

Property Conveyance for National bio and Agro defense Facility

SB 252 conveys approximately 59.3 acres of land on the north side of the campus of Kansas State University from the State Board of Regents to the United States government, Department of Homeland Security. The transfer is contingent upon the Department of Homeland Security selecting a site on the tract of land as the location for the National Bio and Agro Defense facility.

The Adjutant General's Law Enforcement Officers

HB 2068 allows the Adjutant General (TAG) to appoint security and TAG law enforcement officers to protect all National Guard property and equipment, wherever it may be located in the State, and for the protection of persons and property associated with the National Guard. The TAG law enforcement officers appointed by the Adjutant General are required to have successfully completed law enforcement training and certification. The TAG law enforcement officers have all of the general law enforcement powers, rights, privileges, protections, and immunities when acting within such officer's jurisdiction. Specifically, the bill authorizes a TAG law enforcement officer to make arrests for violations of state or federal laws within such officer's jurisdiction, while on duty. The person arrested may be released to the local law enforcement agency or the TAG law enforcement officer would be authorized to book arrested persons in jail.

A TAG law enforcement officer is required to maintain reports which will be kept on file with the Adjutant General. A TAG law enforcement officer is defined as a police officer employed by the Adjutant General.

TAG law enforcement officers may exercise their police powers:

• On property owned or under the control of the Kansas National Guard;
• On streets, property, and highways immediately adjacent to property owned or under the control of the Kansas National Guard to protect the health, safety, and welfare of members of the National Guard, Reserve, or employees of the United States Department of Defense and Homeland Security. An agreement to protect property is subject to approval by the affected city and county and the Adjutant General.

The security officers or TAG law enforcement officers appointed by the Adjutant General are required to wear and publicly display a badge of office.

Kansas National bio and Agro defense Facility Interagency Working Group Act

HB 2303 enacts the Kansas National Bio and Agro Defense Facility Interagency Working Group Act. The bill creates an interagency working group to support and assist the United States Department of Homeland Security in the National Environmental Policy Act process to conduct an environment impact statement on any site in Kansas selected by the Department of Homeland Security for the location of a National Bio and Agro Defense Facility (NBAF).

Ex-officio members of the working group include the Secretary of Health and Environment and the following officials or their designees: Secretary of Commerce, Secretary of Administration, Secretary of Agriculture, Secretary of Revenue, Attorney General, State Board of Regents, Adjutant General, Livestock Commissioner, Mayor of the City of Manhattan, Chairperson of the Leavenworth County Board of Commissioners, and Superintendent of the Kansas Highway Patrol.

The Secretary of Health and Environment will serve as the chairperson of the working group, with the vice-chairperson elected from the group membership.

Appointments of designees must be made and submitted to the Kansas Bioscience Authority no more than 30 days after the enactment of the Act.

The Kansas Department of Health and Environment (KDHE) will coordinate all activities performed by the members of the working group, including:

• Establishing a support network among the members;
• Supporting the Governor in the formulation of recommendations regarding the siting of the NBAF;
• Serving as an information resource on the NBAF, including but not limited to:
  • Providing objective, scientific, education material on the NBAF;
  • Conducting workshops for state and local agencies;
  • Coordinating community outreach meetings;
  • Maintaining a website regarding the NBAF; and
  • Performing other tasks to educate the public about the NBAF.
  • Identifying the regulatory responsibilities for all aspects of siting of the NBAF;
  • Providing guidance to the Department of Homeland Security on state and local permits;
  • Coordinating the exchange of information among federal, state, and local agencies affected by siting of the NBAF in Kansas;
  • Identifying available resources to assist the Department of Homeland Security in the National Environmental Policy Act process; and
  • Facilitating the involvement of all affected state and local agencies in the National Environmental Policy Act process.

The Act will expire upon, either completion of the NBAF, or elimination of all potential sites in Kansas from consideration by the Department of Homeland Security.

National Bio and Agro Defense Facility - Legislative Support for Kansas Location

HCR 5009 pledges the Legislature's support for the National Bio and Agro Defense Facility (NBAF) and urges various federal agencies, the President, and the Kansas congressional delegation to consider two sites in Kansas as the location for the new federal laboratory.

The concurrent resolution notes that:

• A Presidential directive has charged the Department of Homeland Security with coordinating "countermeasure research and development of new methods for detection, prevention technologies, agent characterization, and dose relationships for high-consequence agents";
• There are currently no facilities in the country with adequate containment, security, equipment, and infrastructure to meet the requirements of the directive;
• The federal government has, therefore, initiated plans for the NBAF, which would enhance protection from both natural and intentional threats by modernizing and integrating high bio-security facilities;
• The Department of Homeland Security is seeking a location to build a $451 million, 500,000 square foot, NBAF;
• Kansas pledges its support for the NBAF project, which would address the needs of the state and the nation to protect human and animal health from various disease threats;
• Kansas is the ideal location for the NBAF, since the state has an exceptionally well qualified workforce and is a world leader in bio-science, especially in the areas of animal health and vaccines, and infectious diseases and food safety.
• Two sites in Kansas, one in Manhattan and one in Leavenworth, are actively under federal consideration for the NBAF site;
• Kansas has already demonstrated its strong support for locating the NBAF in Kansas, as the Governor and the Kansas Bio-science Authority have created a task force of prominent industry leaders, public officials, producer groups, and leaders of prominent academic institutions to lead Kansas' efforts to acquire the NBAF;
• Kansas has a long-standing commitment of supporting bio-security research in partnership with the federal government.

The concurrent resolution pledges the Legislature's support for Kansas State University,the City of Manhattan, and the City of Leavenworth in their bids to acquire the NBAF; and expresses the Legislature's commitment to do everything in its power and ability to provide the support necessary for the NBAF to be constructed in Kansas.

The Legislature further strongly encourages the Department of Homeland Security to consider the state's existing building and security infrastructure, as well as the human resources already in place that make Kansas a natural ft for the location of this new federal laboratory.

The Kansas Secretary of State is directed to send enrolled copies of the concurrent resolution to the President, Vice President, various federal officials, each member of the Kansas congressional delegation, and the Governor.

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INSURANCE

HIPAA Compliance

SB 102 amends from December 31, 2006, to December 31, 2007, the sunset date contained in the law requiring parity between health and mental health benefits in all group health insurance policies except for small groups.

Examination Documents, Insurance Companies

SB 111 amends a statute governing the examination of insurance companies and reporting requirements to the Insurance Commissioner. The bill adds law enforcement officials of any other country and officials of any agency of another country to the list of officials and agencies that the Commissioner is permitted to disclose examination documents.

Reciprocals and Attorney-in-fact

SB 121 amends KSA 40-1611 to specify that for the purpose of paying the levies and taxes, a “reciprocal” and its “attorney-in-fact” be considered as the same entity. Under existing law, an “attorney-in-fact” serves as the person (often a corporation managing the day-to-day operations of the reciprocal exchange) designated and authorized by subscribers in their subscriber agreements.

Insurance Holding Companies' Investments

SB 219 amends a statute governing insurance holding companies to allow a domestic insurance company to invest, with certain limitations, in the common stock, preferred stock, debt obligations, and other securities of its subsidiaries. The amount of the investment could not exceed the lesser of 10 percent of the insurance company's assets or 50 percent of the insurance company's surplus, if after the investment is made, the company has enough remaining surplus to meet its obligations (outstanding liabilities and other financial needs). The insurance company's total investment could not exceed the investment limitations set forth in articles 2a (insurers other than life insurers) and 2b (life insurers) in Chapter 40 of the Kansas Statutes Annotated.

When calculating the amount of investments, the company is not to include domestic or foreign insurance subsidiaries and health maintenance organizations and will instead include: total net moneys or other consideration expended and obligations assumed in the acquisition or formation of a subsidiary and all amounts expended in acquiring additional common stock, preferred stock, debt obligations, and other securities (includes all contributions to the capital or surplus of the subsidiary). The Insurance Commissioner will be permitted to approve an investment by an insurance company that exceeds the limits set forth in the bill.

The bill also provides, in the instance where an insurance company ceases to control a subsidiary, to dispose of any such investment within three years within the cessation or within a time-frame determined by the Commissioner.

Existing law permits domestic insurance companies, either by itself or in corporation with other parties, to organize or acquire one or more subsidiaries.

Mutual Life Insurance Company Governance

SB 220 amends the statutes governing the structure of a mutual life insurance company to allow for the company's board of directors to determine, by resolution or bylaws, the method used to elect its board of directors and officers. Additionally, the same method could be used to determine the titles and duties of the company officers. This method currently is used under provisions of the general corporation code. The bill also requires a majority of the number of directors on the board to constitute a quorum for the transaction of business.

The bill eliminates requirements for the organization and duties of the company's board of directors in prior law including a provision that requires the election of directors to provide for an election of not less that 1/5 nor more than 1/3 of the members of the board each year (would serve for not more than five years or more than three years, respectively).

Standard valuation Law Amendment - Lapse Rates

SB 255 amends the Standard Valuation Law to provide for the use of lapse rates in the calculation of reserves for Universal Life Insurance contracts issued after December 31, 2006.The allowance of lapse rates for calculation will apply only to contracts that provide death benefits that are guaranteed to remain in effect (often referred to as secondary guarantee), if the specifed conditions in the contract are met by the contract owner. The lapse rates applied in the calculation of the value of the guarantee will not be permitted to exceed 2.0 percent per year.

Security Deposit Requirements

HB 2107 amends the current law definition for “financial institution” in the security deposit requirements for the Insurance Commissioner. The definition also designates custodial criteria for these institutions including capital standards, regulations, and legal qualifications.

Service Members' Protections - Regulatory Authority

Sub. for HB 2108 gives the Insurance Commissioner the authority to adopt rules and regulations to protect service members of the United States Armed Forces from dishonest and predatory lending practices by identifying and declaring certain practices to be false, misleading,deceptive, or unfair. The bill designates KSA 40-2401 through 40-2414 as the Unfair Trade Practice Law and makes the proposed rules and regulations authority part of this law.

The rules and regulations adopted under the provisions of this bill will not apply to federal insurance programs (Service members' Group Life Insurance).

Risk-based Capital Instructions

HB 2109 amends the statutes dealing with preparation and fling of certain reports by insurance companies with the Insurance Department. The bill updates from December 31, 2005, to December 31, 2006, the risk-based capital (RBC) instructions, including formulas, developed by the National Association of Insurance Commissioners (NAIC) that insurance companies must use in preparing their financial reports for the Department.

Rule and Regulation Authority - Health Care Database

HB 2116 amends the rule and regulation authority, previously granted to the Insurance Commissioner and the Secretary of Health and Environment, to replace the Health and Environment representative with the Executive Director of the Kansas Health Policy Authority as the designated statutory authority for the health care information database.

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JUDICIARY

Juror Records

SB 51 requires the State Registrar of the Department of Health and Environment furnish to the clerk of the district court of each county, without charge, a list of deceased residents of the county who were at least 18 years of age and for whom death certificates have been fled.

District court clerks are authorized to use this information to update or correct juror records but are not allowed to disseminate the information to the public.

Judgment of Record

SB 53 requires a district court judge to release a judgment of record after it has been dormant for at least two years.

Arrest Warrant

SB 54 requires a judge sign an arrest warrant by deleting the authority for the district court clerk to sign the arrest warrant.

Annual Report Regarding Judicial Positions Created or Eliminated

SB 57 repeals the statutory requirement that the Chief Justice of the Supreme Court annually report to the Chairpersons of the Senate and House Judiciary Committees all district magistrate positions created or eliminated and all new district judge positions created.

Trust Property

SB 58 authorizes property titled in the trust name to be conveyed in the name of the trustee, if the name of the trust is clearly specified in the conveyance.

Appointed Counsel

SB 75 allows a chief judge of any judicial district to negotiate a rate of compensation less than the statutorily mandated $80 per hour for attorneys who voluntarily accept appointments to represent indigent criminal defendants.

The bill also explicitly provides that contract counsel be compensated according to the terms agreed upon in the contract between the Board of Indigents' Defense Services (BIDS) and the counsel.

Personal Property Transfer

SB 76 expands the definition of personal property that may be transferred by affidavit for estates not exceeding $20,000. Additionally, the bill expands the definition of who can transfer the decedent's personal property.

Commission on Judicial Performance hiring

SB 85 authorizes the Judicial Council to enter into a written agreement with a retired justice of the Supreme Court or a retired judge of the Court of Appeals or the District Court to perform services for the Commission on Judicial Performance. The bill:

• Limits the agreement for a two-year period;
• Requires the justice or judge to perform assigned duties for not more than 104 days or 40.0 percent of the year;
• Provides that the justice or judge receive a monthly stipend equal to 25.0 percent of the monthly salary of the individual at his or her retirement;
• Provides that the justice or judge also receive service retirement benefits through the retirement system for judges;
• Provides that the monthly stipend is not counted toward the annual limitation on compensation; and
• Provides that a retired justice or judge who had fulfilled the requirements of an agreement with the Commission is allowed to accept judicial assignments and be compensated.

Court Appointed Special Advocates (CASA) Reports

Sb 118 allows a presiding judge for a case under the Code for Care of Children to read reports prepared pursuant to the court's order for evaluation of development or needs of the child. The court may order a report of or by the following:

• The child;
  • Psychological or emotional;
  • Medical; or
  • Educational;
• The parent or custodian;
  • Physical;
  • Psychological; or
  • Emotional.

The court may receive reports from court-appointed special advocates or by the Secretary of the Kansas Department of Social and Rehabilitation Services.

The reports are required to be fled with the court and made available to counsel for any party or interested party prior to any scheduled hearing. The court is not permitted to derive facts or conclusions from a report unless the information has been admitted into evidence with the consent of the parties or with the opportunity to examine the person who prepared the report.

Stockholder or Member Consents

SB 162 deletes the requirement for delivery by return receipt of stockholder or member consents authorizing an action of a corporation.

Uniform Commercial Code Article I

SB 183 amends Article I of the Uniform Commercial Code (UCC) which provides defnitions and general provisions of the UCC.

The bill clarifies the following major provisions:

• The substantive rules of Article 1 apply only to transactions within the scope of other articles of the UCC;
• The application of supplemental principles of law with clearer distinctions where the UCC is preemptive;
• The definition of "good faith" is revised to mean "honesty in fact and the observance of reasonable commercial standards of fair dealing: and
• That evidence of "course of performance" may be used to interpret a contract along with "course of dealing and usage of trade."

Business Entities

SB 259 creates a uniform standard among different business entities with regard to signature requirements for documents fled with the Secretary of State by requiring the document to be dated and signed by an officer under penalty of perjury. The bill also creates a uniform standard to allow an individual, the entity itself, or a domestic or foreign corporation, limited partnership,limited liability company or business trust to serve as a resident agent for the business entity. The bill authorizes reinstatements, if the articles of incorporation became void for nonpayment of the annual report fee or failure to file the annual report.

The term "limited corporate partnership" is updated and replaced by the term "limited agricultural partnership" in a statute requiring certain reporting by these business entities. Additionally, the bill requires the Secretary of State to provide a duplicate copy of a professional association's (PA) annual report to the regulatory board that oversees the PA only upon request.

Revised Kansas Code for Care of Children

SB 269 amends the Revised Kansas Code for Care of Children by requiring, when service is by publication, that the notice to be placed in a local newspaper authorized to publish legal notices in the location where the parent to be served is residing, with substantial certainty.

Uniform Commercial Code Article 7

SB 308 amends Article 7 of the Uniform Commercial Code to authorize electronic documents of title to transfer rights in goods.

Fingerprinting and Photographing Juvenile Offenders

HB 2074 deals with fnger printing and photographing juveniles. The bill requires fingerprinting and allows photographing of juveniles when he or she is taken into custody but before final sentencing for crimes that, if committed by an adult, would constitute a felony, a class A or B misdemeanor, or assault. In addition, the bill requires the juvenile's fingerprints and allows photographs be sent to the state and federal repositories if the juvenile is sent to a juvenile correctional facility or if the juvenile is taken into custody for the above-mentioned offenses. In addition, the bill allows, but does not require, photos to be taken at juvenile detention facilities but also restricts their distribution.

Prior law, as a result of 2006 SB 261, required fingerprinting and photographing of a juvenile upon conviction (adjudication) of the juvenile.

State Statistical Analysis Center

HB 2087 amends the duties of the Kansas Sentencing Commission by adding the duties regarding the designation and functions of the State Statistical Analysis Center to the Commission. All criminal justice agencies are required to provide any data or information, including juvenile offender information requested by the Commission, to facilitate the State Statistical Analysis Center.

The oversight of these requirements under prior law were listed as duties of the Kansas Criminal Justice Coordinating Council.

Prosecution of County Codes

HB 2161 adds Leavenworth County to the list of existing counties (Crawford, Douglas, Franklin, Jefferson, Johnson, Miami, Riley, Sedgwick, Shawnee, and Wyandotte counties) that are allowed to prosecute violations of county codes and resolutions in district court.

Discretion to Dismiss Violations of Release

HB 2190 provides authority for the Secretary of the Department of Corrections, or the Secretary's designee, to dismiss charges that a released inmate has violated the conditions of release and may order the released inmate to remain on parole, conditional release, or post-release supervision.

Other changes are technical in nature.

Release on Bond - New Felony Commission

HB 2193 allows a new sentence to be imposed on an offender released on bond for a felony committed in another state and who then commits a Kansas felony. The provision treats such an offender the same as prior law imposed on an offender while on bond for felony charges in Kansas.

Inmate Programs

HB 2230 provides that for an inmate serving an indeterminate or off-grid sentence who enters into an agreement with the Secretary of Corrections regarding educational, vocational,mental health, or other programs, the inmate needs to complete the program. Failure to complete the program may impact the post-release date of the inmate.

Prior law did not impact the post-release date of an inmate; however, the Parole Board may impose conditions related to completion of program elements or other conditions that must be followed during post-release supervision.

Jury Duty Payments to Counties

HB 2232 deletes the requirement in prior law that required the Department of Corrections to reimburse counties for jury fees when a defendant is an inmate of a state correctional facility.

Prison Made Products

HB 2233 provides for the sale of prison-made products and services by Kansas Correctional Industries (KCI) to state employees for their personal use. Prior law allowed for the sale of such products and services to any state agency, local agency, federal government, Kansas organizations, or other states.

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LOCAL GOVERNMENT

City-County Unification

SB 36 makes the following changes to the statutes establishing a process for the possible city-county unification in Greeley County:

• Allows for submission of the final plan to the County's voters at any primary, general or special election. Prior law required the plan be submitted at the next general election.
• Specifies that the provisions under which the election is to be called and held are those required for the issuance of bonds for any purpose by most municipalities.
• Authorizes the unification plan to provide for the election of governing body members from districts, in addition to the previously authorized at-large basis of electing members.
• Changes the classification requirement of the unified city-county to a city of the third class. Prior law required the entity be a city of the first class.

Townships

HB 2021 authorizes townships to transfer money or property (or proceeds from the sale of property), which the township received as a contribution or gift, to either (a) a nonprofit Kansas corporation exempt from federal income taxation under section 501(c)(3) of the federal Internal Revenue Code; or (b) a political or taxing subdivision located within the same county as the township. The transfer must be authorized by a resolution passed by the township board, which states that the money is not needed to meet the township's obligations.

The bill also allows a number of township records to be recorded electronically. Prior law required the records be kept "in a book" the bill adds another method by which they may be recorded.

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RETIREMENT

Local Government Post Employment Benefits Trust Funds

SB 232 allows most taxing subdivisions to create and manage trust funds to hold or invest assets for post employment benefits. School districts and community college districts are excluded by the bill. Additionally, the bill allows eligible taxing subdivisions to participate in multi-employer trust funds. The bill expands the definition of "other post employment benefits" to include post employment healthcare, life insurance and other benefits. The bill would be effective upon publication in the Kansas Register.

Deferred Compensation - Transfer to KPERS

HB 2385 transfers administration of the Kansas Public Employees Deferred Compensation Plan to the Kansas Public Employees Retirement System (KPERS) on January 1, 2008. The KPERS Board of Trustees is assigned responsibility to administer the plan. The Director of Accounts and Reports retains responsibility for payroll deferrals and deductions for state employees who participate in the plan. The Administrative Oversight Committee on Deferred Compensation is abolished and the KPERS Board of Trustees assumes the responsibilities of monitoring the plan.

Effective January 1, 2008, all contracts related to the deferred compensation plan will be transferred to the KPERS Board of Trustees, along with plan documents, participation agreements, and other materials associated with the plan. All funds and accounts in the State Treasury also will be transferred to KPERS to be used only for the purpose for which the appropriation originally was made. Any employees of the Department of Administration who worked on the plan may be transferred to KPERS. Any classified employee that is transferred retains all rights and benefits after the transfer.

The bill authorizes the KPERS Board to contract with insurers, investment managers, and other contracting entities to provide benefits or investment services to participants in the deferred compensation plan. The KPERS Board also may contract with qualified private firms for billing services, participant enrollment services, communications services, participant account record keeping services, and any other services associated with administration of the plan.

In addition to contracting for benefits and investment services, the KPERS Board may offer deferred compensation plan investment options in a manner permitted by the plan. A two-year employment prohibition for KPERS Board members will prevent employment after conclusion of Board service by any organization in which moneys from the deferred compensation plan are invested. An exemption applies to employment within two years after Board service with entities whose stock is traded on public stock or bond exchanges.

The bill allows state employees with participation agreements to continue under both the voluntary section 457 plan and the section 401(a) defined contributions plan authorized under KSA 75-5524(c)(1) for statutorily-designated state officers. Future enrollment of eligible state officers and employees will be permitted after January 1, 2008, through the KPERS Board as plan administrator.

Local government employees with voluntary agreements also will continue as participants as authorized in agreements with local units of government. Future agreements between the KPERS Board and local units of government will be permitted under provisions of the bill.

The bill continues to mandate that participating employees pay all costs of administering the plan. The bill also prohibits any commingling of assets of the deferred compensation plan and the KPERS Trust Fund for any purpose, except that assets may be pooled for investment purposes.

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STATE GOVERNMENT

Tribal Law Enforcement Liability Insurance

SB 13 requires insurance carriers, providing liability insurance coverage to tribal law enforcement officers for reservation state law enforcement (within the exterior limits of the reservation), to certify with the Attorney General that the tribal officers have the appropriate insurance coverage. In addition, the bill requires the insurance carrier to notify the Attorney General if the insurance coverage is terminated or no longer complies with the insurance requirements.

The bill also requires the insurance policy to be in an amount not less than $2,000,000 aggregate loss limit.

Finally, the bill requires the tribes to waive their sovereign immunity necessary to permit recovery under the liability insurance, but not to exceed the policy limits.

City Airport Authority General Obligation bonds

SB 33 authorizes a city airport authority to increase its general obligation bond limit, issued by the authority, from the current 3 percent to 10 percent of the assessed valuation of all tangible property within the city limits for renovations, improvements, and development.

National Park Tracts

SB 356 adds three national park tracts that the State of Kansas would cede to the United States government for concurrent legislative jurisdiction over crimes and offenses. These tracts include Nicodemus National Historic Society, Tall grass Prairie National Preserve, and the Brown vs. Board of Education National Historic site.

State Certified and Licensed Property Appraisers Act

SB 360 amends the State Certified and Licensed Real Property Appraisers Act. A real estate appraiser may request to the Real Estate Appraisers Board that such appraiser's license or certificate be placed on inactive status for a period of up to two years. If the Board places the license or certificate on inactive status, the holder would be prohibited from:

• Using any titles or abbreviations indicating that such person holds an active certificate or license;
• Referring to any appraisal or evaluation of real estate by the term certified or state licensed; and
• Preparing real estate appraisals for federally-related transactions.

The holder can request reinstatement from the Board and would be required to pay a fee of $50.

The Board is authorized to develop rules and regulations dealing with receiving and approving applications to place certificates or licenses on inactive status and reinstatement to active status.

The Board is authorized to apply to the district court for the issuance of subpoenas compelling the attendance and testimony of witnesses or the production for examination or copying of documents as it relates to disciplinary action. A person receiving a subpoena may petition the Board to revoke, limit, or modify the subpoena. The district court would have jurisdiction to require the person to appear before the Board to: produce evidence, revoking and limiting or modifying the subpoena.

Commission on Emergency Planning and Response Membership

HB 2152 expands the membership of the Commission on Emergency Planning and Response (CEPR) to include the agency head of the Kansas Bureau of Investigation, the Kansas Department of Agriculture, and the Kansas Animal Health Department. The CEPR members appointed by the Governor also are expanded from seven members to 18 members for a total membership of 25. The additional appointed members include one representative from each of the following groups: counties; cities; agriculture, crop or livestock; transportation, trucking or rail; energy; law enforcement; fire fighters; county emergency managers; emergency medical services; public works; hospitals; public health; tribes of Kansas; individuals with disabilities; and one representative of the seven regional homeland security councils.

The Governor appoints an additional 18 members of the CEPR and of the three members that represent business and industry, one is required to be from broadcasting.

Real Estate Sales validation Questionnaires

HB 2249 makes technical changes regarding real estate transaction brokers' real estate sales validation questionnaires by substituting the term "fiduciary" with "statutory" and adding "and customers" to the term "clients."

Kansas Consumer Protection Act - Wood destroying Insects

HB 2268 adds provisions to the Kansas Consumer Protection Act (KCPA) dealing with inspections for wood destroying insects. Any person performing inspections in connection with a real estate transaction or a real estate loan must hold a valid certification pursuant to Kansas Pesticide Law, which authorizes the person to use or supervise the use of restricted use pesticides in the control of wood destroying insects.

Violations of these requirements are a deceptive acts or practices under the KCPA.

Inspections performed by employees of the Kansas Department of Agriculture are exempt from the Kansas Pesticide Law.

Kansas Fireworks Act

HB 2475 establishes the Kansas Fireworks Act which would be administered by the State Fire Marshal. The bill requires any person who intends to sell, offer for sale, possess with intent to sell, any consumer fireworks, display fireworks or articles pyrotechnic or discharge, use, display fireworks or articles pyrotechnic be required to obtain the appropriate license from the State Fire Marshal. The license requirement will not apply to seasonal retailers. The license holder is required to satisfy the requirements of the Act and rules and regulations adopted by the State Fire Marshal. The Act requires:

• The license holder to be at least 21 years of age when applying for a license;
• The license would not be transferable; and
• A permit to conduct a fireworks display to be obtained from the city or county where the fireworks display is to be discharged by the sponsor or operator.

In addition, the State Fire Marshal has the authority to charge fees as follows:

• Manufacturer license annual fee, not less than $400 or more than $600;
• A hobbyist manufacturer license for a period of four years, not less than $50 or more than $80;
• A distributor license annual fee, not less than $300 or more than $500; and
• A display fireworks operator or a proximate pyrotechnics operator license for a period of four years, not less than $40 or more than $80.

No fee would be charged for a license or permit for any person who is an officer or employee of the state or any political or taxing subdivision of the state when that person is acting in his or her official capacity.

The owner of any display fireworks storage facility is required to obtain a storage permit from the State Fire Marshal and the storage permit will not be required for day boxes used at a display site. The permit will be valid for a period of four years, with a fee of not less than $25 or more than $75.

Finally, all fees will be deposited in the state treasury to be credited to the State Fire Marshal Fee Fund, and the bill provides rule and regulation authority to the State Fire Marshal.

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TAXATION

Corporation Income Tax - Apportionment Formula

SB 240 establishes a single-factor corporation income tax apportionment formula option for manufacturers constructing a new facility in Kansas that costs at least $100 million; employing at least 100 new employees at such facility by December 31, 2009; and paying higher than average wages. The optional apportionment formula, which is based exclusively on the amount of sales attributable to Kansas, will be required to be used by any taxpayer utilizing the provision for 10 tax years.

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TRANSPORTATION

Deputy Todd Widman Memorial Highway

SB 108 designates a portion of United States Highway 73 as the Deputy Todd Widman Memorial Highway Last Call 3-1-2000. The designation is on United States Highway 73 from the north city limits of the city of Horton then north to the Kansas-Nebraska border. The bill also requires the Secretary of Transportation to:

• Place signs along the highway right-of-way at proper intervals to indicate the designation;
• Receive sufficient moneys from gifts and donations to reimburse the Secretary for the cost of placing the signs before erecting the signs; and
• Charge an additional 50 percent of the initial cost of the signs to defray future maintenance or replacement costs of the signs.

The Secretary is authorized to accept and administer gifts and donations to aid in obtaining and installing suitable signs.

The 95th Division, the Iron Men of Metz Highway

HB 2041 amends prior law and renames “the 95th Division of the United States Army Highway, the "95th Division, the Iron Men of Metz Highway." The designation begins on United States Highway 24 from the east city limits of Topeka, then east on United States Highway 24, to the junction with United States Highway 59, then north on United States Highway 59, to the junction with K-2 Highway, then in a northeasterly direction on K-92 Highway to the City of Leavenworth.

The bill also requires the Secretary of Transportation to:

• Place signs along the highway right-of-way at proper intervals to indicate the designation;
• Receive sufficient moneys from gifts and donations for the reimbursement of the cost of placing such signs before erecting the signs; and
• Charge an additional 50 percent of the initial cost of the signs to defray future maintenance or replacement costs of the signs.

The Secretary also may accept and administer gifts and donations to aid in obtaining and installing the signs.

Drivers' Licenses

Sub. for HB 2042 permits licensees whose driver's license expires on their twenty-first birthday, to have 45 days from the date of expiration of the license to renew their license; provides that the license would be valid for the 45 days or until it is renewed, whichever is sooner; provides that the licensee who renews the license will not be required to take a driving test pursuant to existing law; and provides that any county treasurer authorized to accept applications for drivers' licenses or administer drivers' license examinations be deemed to be acting as an agent of the State of Kansas.

Motor Vehicle Liens

HB 2373 provides that on and after July 1, 2007, only one lien will be taken or accepted for vehicles with a gross vehicle weight rating of 26,000 pounds or less for an obligation to be secured on a certificate of title. However, this does not apply when a loan is refinanced. Finally,the bill ensures that a second lien could not be perfected upon a motor vehicle title.

The bill takes effect upon publication in the Kansas Register.

Driving Records

HB 2374 allows the Director of Vehicles of the Kansas Department of Revenue to provide an employer with an employee's motor vehicle driving record, if the employee is required to drive in the course of his or her job. The records will be used by the employer to ensure driver behavior, performance, or safety.

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VETERANS AND MILITARY

Kansas Commission on veterans' Affairs

Sub. for HB 2067 authorizes a criminal history records check for candidates and current employees with less than five years' tenure at the Kansas Commission on Veterans' Affairs (KCVA).From the effective date of this Act, the criminal history records check is limited to those candidates or employees who are deemed to be in a sensitive position by the Executive Director of the KCVA or who interview claimants and provide information, advice and counseling to veterans, surviving spouses, and their dependents. The candidate or employee who is subject to the criminal history records check is entitled to written notice that the criminal history records check is required and will be informed, in writing, if the information obtained in the criminal history records check disqualifies the candidate or current employee from employment. A conviction of dishonesty or violence is a conviction which may disqualify a candidate or employee.

KCVA is required to submit the candidate or employee's fingerprints to the Kansas Bureau of Investigation (KBI) and the Federal Bureau of Investigation (FBI) for the purpose of determining whether he or she has a criminal record.

Employees of the Kansas Soldiers' Home and the Kansas Veterans' Home are excluded from the criminal history records check.

In-State Tuition for Kansas National Guard Members

HB 2425 broadens the class of persons who are qualified to pay in-state tuition at state educational institutions to include any person who is a member of the Kansas National Guard. Additionally, the definition of "military service" is expanded to include membership in the Kansas Army or Air National Guard.

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WORKERS COMPENSATION

Premium Tax Collection Method

HB 2115 amends the premium tax collection method for workers compensation group-funded pools. Under the bill, the labor group-funded pools will be permitted to collect in the same manner as municipal group-funded pools, rather than the current calculation based on estimated premiums. The premium tax is to be based upon the annual Kansas gross premium collected by the pool (at the currently established rate of 1 percent per annum) as applied to the collective premium relating to all Kansas members of the pool from the previous fiscal year. The tax is to be paid no later than 90 days after the end of each fiscal year.