Session Law

Identifying Information:L. 2001 ch. 005
Other Identifying Information:2001 Senate Bill 15
Tax Type:Other
Brief Description:An Act concerning state moneys; relating to the remittance of moneys to the state treasurer; amending K.S.A. 2-220, 2-427, 2-1425, 2-2128, 2-2212, 2-2440e, 2-2478, 2-2814, 2-3317, 8-267, 8-280, 8-1333, 8-2418, 8-2425, 9-1917, 9-1918, 12-2623, 17-1271, 17-2206a, 17- 2236, 17-2265, 17-5610, 17-5701, 17-7508, 17-7515, 20-156, 20-1a01, 20-1a02, 20-1a03, 20-213, 20-2801, 21-4610a, 22-4526, 25-4006, 25-4119a, 25-4119f, 25-4145, 25-4152, 25-4180, 25-4181, 25-4305, 28-172b, 31-133a, 31-134, 31-159, 32-854, 32-877, 32-984, 32-991, 32-993, 32-1047, 32-1173, 34-101, 36-512, 36-515b, 38-2009, 39-757, 39-784, 39-936, 39-1210, 40-112, 40-223, 40-1706, 40-2120, 40-2251, 40-2305, 40-2306, 40- 2809, 40-2906a, 40-3016, 40-3118, 40-3213, 40-3421, 41-317, 41-328, 41-347, 41-501, 41-2606, 41-2622, 41-2645, 41-2702, 44-324, 44-411, 44-532, 44-566a, 44-570, 44-575, 44-587, 44-712, 44-714, 44-806a, 44-812, 44-926, 44-1019, 44-1506, 44-1512, 45-107, 45-116, 46-237a, 46-265, 46-280, 46-288, 46-802, 46-1118, 46-1121, 46-1207a, 46-1503, 47-417a, 47-437, 47-504, 47-624, 47-672, 47-820, 47-842, 47-1008, 47-1011, 47-1011a, 47-1218, 47-1503, 47-1721, 47-1805, 47-1809, 47-1831, 47-2101, 48-272, 48-273, 48- 942, 48-1613, 48-1623, 48-3108, 48-3302, 49-420, 49-428, 50-1005, 53-104, 55-176, 55- 609, 55-711, 55-901, 55-1204, 55-1207, 58-3074, 58-4107, 59-901, 60-306, 65-102a, 65- 157, 65-171e, 65-171v, 65-1,109a, 65-245, 65-6a45, 65-6a56, 65-6b10, 65-770, 65-1718, 65-1817a, 65-1926, 65-2011, 65-2015, 65-2855, 65-2863a, 65-28,121, 65-2911, 65-3023, 65-4216, 65-4415, 65-4437, 65-4514, 65-5002, 65-5309, 65-5413, 65-5513, 65-5708, 66- 1,155, 68-173, 68-413, 68-423a, 68-1139, 72-1387, 72-2148, 72-4432, 72-4442, 72-4463, 72-6418, 72-6505, 72-7080, 72-7528, 72-9705, 74-504e, 74-617, 74-715, 74-1108, 74- 1109, 74-1110, 74-1405, 74-1503, 74-1609, 74-2117, 74-2445, 74-3267a, 74-3903, 74- 4551, 74-5055, 74-5619, 74-5805, 74-6708, 74-7010, 74-7039, 74-7317, 74-7506, 74- 8821, 74-8824, 74-8826, 74-8827, 74-8835, 75-420, 75-433, 75-436, 75-438, 75-441, 75-706, 75-750, 75-1119b, 75-1513, 75-1514, 75-2250, 75-2251, 75-2253, 75-2254, 75- 2562, 75-2701, 75-2705, 75-2728, 75-3320, 75-3345, 75-3728b, 75-3747, 75-3768, 75- 37,118, 75-4201, 75-4214, 75-4215, 75-4603, 75-4614, 75-46a05, 75-4704a, 75-5039, 75- 5049, 75-5132, 75-5289, 75-52,136, 75-5397a, 75-5533, 75-5662, 75-5733, 75-6210, 75-6513, 75-6605, 75-7033, 76-116e, 76-168, 76-326b, 76-376, 76-385, 76-466, 76-509, 76-518, 76-6a06, 76-762, 76-1201c, 76-12a08, 76-12a10, 76-12a15, 76-1302a, 76-1409a, 76-17a11, 76-17c01a, 76-1906, 76-1939, 76-1953, 76-2056, 76-2101a, 76-2201a, 76- 2614, 77-138, 77-165, 77-430, 77-431, 79-6a04, 79-6a10, 79-1112, 79-1124, 79-3095, 79- 32,105, 79-3303, 79-3311, 79-3387, 79-3454, 79-3495, 79-4108, 79-41a03, 79-4227, 79- 5117, 79-5211, 82a-212, 82a-731, 82a-952, 82a-954, 82a-1206, 82a-1216, 82a-1315a, 82a-1315c, 82a-1408, 82a-1413, 82a-1503, 83-214, 83-302, 83-402, 83-501 and 83-502 and K.S.A. 2000 Supp. 1-204, 2-205, 2-225, 2-1011, 2-1012, 2-1205, 2-1421a, 2-2464a, 2-2507, 2-2911, 2-3315, 8-116a, 8-132, 8-143g, 8-145, 8-146, 8-1,101, 8-1,112, 8-241, 8- 255, 8-1008, 8-1911, 8-2110, 9-1111b, 9-1135, 9-1703, 9-1803, 9-1804, 9-2107, 9-2108, 12-1694, 12-1698, 12-2539, 12-4116, 12-4117, 13-13a38, 16a-2-302, 17-7509, 19-4707, 20-166, 20-1a04, 20-1a11, 20-350, 20-362, 20-367, 21-3851, 22-4504, 22-4529, 23-108a, 48-3303, 49-622, 55-155, 55-164, 55-180, 55-427, 55-443, 58-2011, 58-3066, 58-4118, 65-163, 65-166a, 65-1,205, 65-505, 65-519, 65-526, 65-708a, 65-750, 65-1436, 65-1526, 65-1657, 65-1658, 65-1951, 65-1954, 65-2418, 65-3415a, 65-3415b, 65-3424b, 65-3424d, 65-3424k, 65-3431, 65-34,117, 65-34,145, 65-34,146, 65-34,150, 65-34,151, 65-3503, 65- 4610, 65-5913, 65-6128, 65-6129, 65-6129b, 65-6512, 65-6809, 65-6910, 66-1,139, 66- 1,139a, 66-1a01, 66-1503, 68-2096, 72-979, 72-4530, 72-4939, 72-6441, 73-1231, 74- 534, 74-1106, 74-2022, 74-2124, 74-2704, 74-3256, 74-3272a, 74-3298, 74-32,107, 74-32,119, 74-32,138, 74-5005, 74-5074, 74-5086a, 74-5091, 74-50,108, 74-50,156, 74- 5204, 74-7009, 74-7325, 74-7334, 74-8203, 74-8711, 74-8813, 74-8815, 74-8818, 74- 8822, 74-8823, 74-8836, 74-8927, 74-8929, 74-9808, 75-715, 75-7b23, 75-1308, 75-2256, 75-2265, 75-2534, 75-3352, 75-3365, 75-3683, 75-3765, 75-5048, 75-5282, 75-5542, 75- 5670, 75-7021, 79-15,112, 79-15,116, 79-3391, 79-3408c, 79-3425, 79-3491a, 79-34,104, 79-34,126, 79-3620, 79-3710, 79-4710, 79-4713, 79-5303 and 82a-1315b and repealing the existing sections.
Keywords:


Body:

CHAPTER 5

SENATE BILL No. 15

(Amended by Chapters 152, 161, 165, 167, 188 and 191)


An Act concerning state moneys; relating to the remittance of moneys to the state treasurer;

amending K.S.A. 2-220, 2-427, 2-1425, 2-2128, 2-2212, 2-2440e, 2-2478, 2-2814, 2-3317,

8-267, 8-280, 8-1333, 8-2418, 8-2425, 9-1917, 9-1918, 12-2623, 17-1271, 17-2206a, 17-

2236, 17-2265, 17-5610, 17-5701, 17-7508, 17-7515, 20-156, 20-1a01, 20-1a02, 20-1a03,

20-213, 20-2801, 21-4610a, 22-4526, 25-4006, 25-4119a, 25-4119f, 25-4145, 25-4152,

25-4180, 25-4181, 25-4305, 28-172b, 31-133a, 31-134, 31-159, 32-854, 32-877, 32-984,

32-991, 32-993, 32-1047, 32-1173, 34-101, 36-512, 36-515b, 38-2009, 39-757, 39-784,

39-936, 39-1210, 40-112, 40-223, 40-1706, 40-2120, 40-2251, 40-2305, 40-2306, 40-

2809, 40-2906a, 40-3016, 40-3118, 40-3213, 40-3421, 41-317, 41-328, 41-347, 41-501,

41-2606, 41-2622, 41-2645, 41-2702, 44-324, 44-411, 44-532, 44-566a, 44-570, 44-575,

44-587, 44-712, 44-714, 44-806a, 44-812, 44-926, 44-1019, 44-1506, 44-1512, 45-107,

45-116, 46-237a, 46-265, 46-280, 46-288, 46-802, 46-1118, 46-1121, 46-1207a, 46-1503,

47-417a, 47-437, 47-504, 47-624, 47-672, 47-820, 47-842, 47-1008, 47-1011, 47-1011a,

47-1218, 47-1503, 47-1721, 47-1805, 47-1809, 47-1831, 47-2101, 48-272, 48-273, 48-

942, 48-1613, 48-1623, 48-3108, 48-3302, 49-420, 49-428, 50-1005, 53-104, 55-176, 55-

609, 55-711, 55-901, 55-1204, 55-1207, 58-3074, 58-4107, 59-901, 60-306, 65-102a, 65-

157, 65-171e, 65-171v, 65-1,109a, 65-245, 65-6a45, 65-6a56, 65-6b10, 65-770, 65-1718,

65-1817a, 65-1926, 65-2011, 65-2015, 65-2855, 65-2863a, 65-28,121, 65-2911, 65-3023,

65-4216, 65-4415, 65-4437, 65-4514, 65-5002, 65-5309, 65-5413, 65-5513, 65-5708, 66-

1,155, 68-173, 68-413, 68-423a, 68-1139, 72-1387, 72-2148, 72-4432, 72-4442, 72-4463,

72-6418, 72-6505, 72-7080, 72-7528, 72-9705, 74-504e, 74-617, 74-715, 74-1108, 74-

1109, 74-1110, 74-1405, 74-1503, 74-1609, 74-2117, 74-2445, 74-3267a, 74-3903, 74-

4551, 74-5055, 74-5619, 74-5805, 74-6708, 74-7010, 74-7039, 74-7317, 74-7506, 74-

8821, 74-8824, 74-8826, 74-8827, 74-8835, 75-420, 75-433, 75-436, 75-438, 75-441,

75-706, 75-750, 75-1119b, 75-1513, 75-1514, 75-2250, 75-2251, 75-2253, 75-2254, 75-

2562, 75-2701, 75-2705, 75-2728, 75-3320, 75-3345, 75-3728b, 75-3747, 75-3768, 75-

37,118, 75-4201, 75-4214, 75-4215, 75-4603, 75-4614, 75-46a05, 75-4704a, 75-5039, 75-

5049, 75-5132, 75-5289, 75-52,136, 75-5397a, 75-5533, 75-5662, 75-5733, 75-6210,

75-6513, 75-6605, 75-7033, 76-116e, 76-168, 76-326b, 76-376, 76-385, 76-466, 76-509,

76-518, 76-6a06, 76-762, 76-1201c, 76-12a08, 76-12a10, 76-12a15, 76-1302a, 76-1409a,

76-17a11, 76-17c01a, 76-1906, 76-1939, 76-1953, 76-2056, 76-2101a, 76-2201a, 76-

2614, 77-138, 77-165, 77-430, 77-431, 79-6a04, 79-6a10, 79-1112, 79-1124, 79-3095, 79-

32,105, 79-3303, 79-3311, 79-3387, 79-3454, 79-3495, 79-4108, 79-41a03, 79-4227, 79-

5117, 79-5211, 82a-212, 82a-731, 82a-952, 82a-954, 82a-1206, 82a-1216, 82a-1315a,

82a-1315c, 82a-1408, 82a-1413, 82a-1503, 83-214, 83-302, 83-402, 83-501 and 83-502

and K.S.A. 2000 Supp. 1-204, 2-205, 2-225, 2-1011, 2-1012, 2-1205, 2-1421a, 2-2464a,

2-2507, 2-2911, 2-3315, 8-116a, 8-132, 8-143g, 8-145, 8-146, 8-1,101, 8-1,112, 8-241, 8-

255, 8-1008, 8-1911, 8-2110, 9-1111b, 9-1135, 9-1703, 9-1803, 9-1804, 9-2107, 9-2108,

12-1694, 12-1698, 12-2539, 12-4116, 12-4117, 13-13a38, 16a-2-302, 17-7509, 19-4707,

20-166, 20-1a04, 20-1a11, 20-350, 20-362, 20-367, 21-3851, 22-4504, 22-4529, 23-108a,

48-3303, 49-622, 55-155, 55-164, 55-180, 55-427, 55-443, 58-2011, 58-3066, 58-4118,

65-163, 65-166a, 65-1,205, 65-505, 65-519, 65-526, 65-708a, 65-750, 65-1436, 65-1526,

65-1657, 65-1658, 65-1951, 65-1954, 65-2418, 65-3415a, 65-3415b, 65-3424b, 65-3424d,

65-3424k, 65-3431, 65-34,117, 65-34,145, 65-34,146, 65-34,150, 65-34,151, 65-3503, 65-

4610, 65-5913, 65-6128, 65-6129, 65-6129b, 65-6512, 65-6809, 65-6910, 66-1,139, 66-

1,139a, 66-1a01, 66-1503, 68-2096, 72-979, 72-4530, 72-4939, 72-6441, 73-1231, 74-

534, 74-1106, 74-2022, 74-2124, 74-2704, 74-3256, 74-3272a, 74-3298, 74-32,107,

74-32,119, 74-32,138, 74-5005, 74-5074, 74-5086a, 74-5091, 74-50,108, 74-50,156, 74-

5204, 74-7009, 74-7325, 74-7334, 74-8203, 74-8711, 74-8813, 74-8815, 74-8818, 74-

8822, 74-8823, 74-8836, 74-8927, 74-8929, 74-9808, 75-715, 75-7b23, 75-1308, 75-2256,

75-2265, 75-2534, 75-3352, 75-3365, 75-3683, 75-3765, 75-5048, 75-5282, 75-5542, 75-

5670, 75-7021, 79-15,112, 79-15,116, 79-3391, 79-3408c, 79-3425, 79-3491a, 79-34,104,

79-34,126, 79-3620, 79-3710, 79-4710, 79-4713, 79-5303 and 82a-1315b and repealing

the existing sections.




Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 75-4201 is hereby amended to read as follows: 75-

4201. As used in this act, unless the context otherwise requires:

(a) ``Treasurer'' means state treasurer.

(b) ``Controller'' means director of accounts and reports.

(c) ``Board'' means the pooled money investment board.

(d) ``Bank'' means a bank incorporated under the laws of this state,

or organized under the laws of the United States or another state and

which has a main or branch office in this state.

(e) ``State moneys'' means all moneys in the treasury of the state or

coming lawfully into the possession of the treasurer.

(f) ``State bank account'' means state moneys or fee agency account

moneys deposited in accordance with the provisions of this act.

(g) ``Operating account'' means a state bank account which is payable

or withdrawable, in whole or in part, on demand.

(h) ``Investment account'' means a state bank account which is not

payable on demand.

(i) ``Fee agency account'' means a state bank account of any state

agency consisting of fees, tuition or charges moneys authorized by law

prior to remittance to the state treasurer.

(j) ``Disbursement'' means a payment of any kind whatsoever made

from the state treasury or from any operating account, except transfer of

moneys between or among operating accounts and investment accounts

or either or both of them.

(k) ``Securities'' means, for the purposes of this section and K.S.A.

75-4218, and amendments thereto, securities, security entitlements, fi-

nancial assets and securities account consisting of any one or more of the

following, and security entitlements thereto, which may be accepted or

rejected by the pooled money investment board:

(1) Direct obligations of, or obligations that are insured as to principal

and interest by, the United States government or any agency thereof and

obligations, letters of credit and securities of United States sponsored

enterprises which under federal law may be accepted as security for pub-

lic funds.

(2) Kansas municipal bonds which are general obligations of the mu-

nicipality issuing the same.

(3) Revenue bonds of any agency or arm of the state of Kansas.

(4) Revenue bonds of any municipality, as defined by K.S.A. 10-101,

and amendments thereto, within the state of Kansas or bonds issued by

a public building commission as authorized by K.S.A. 12-1761, and

amendments thereto, if approved by the state bank commissioner, except

(A) bonds issued under the provisions of K.S.A. 12-1740 et seq., and

amendments thereto, unless such bonds are rated at least MIG-1 or Aa

by Moody's Investors Service or AA by Standard & Poor's Corp. and (B)

bonds secured by revenues of a utility which has been in operation for

less than three years. Any expense incurred in connection with granting

approval of revenue bonds shall be paid by the applicant for approval.

(5) Temporary notes of any municipal corporation or quasi-municipal

corporation within the state of Kansas which are general obligations of

the municipal corporation or quasi-municipal corporation issuing the

same.

(6) Warrants of any municipal corporation or quasi-municipal cor-

poration within the state of Kansas the issuance of which is authorized

by the state board of tax appeals and which are payable from the proceeds

of a mandatory tax levy.

(7) Bonds of any municipal or quasi-municipal corporation of the

state of Kansas which have been refunded in advance of their maturity

and are fully secured as to payment of principal and interest thereon by

deposit in trust, under escrow agreement with a bank, of direct obligations

of, or obligations the principal of and the interest on which are uncon-

ditionally guaranteed by, the United States of America. A copy of such

escrow agreement shall be furnished to the treasurer.

(8) Securities listed in paragraph (14) of subsection (d) of K.S.A. 9-

1402, and amendments thereto, within limitations of K.S.A. 9-1402, and

amendments thereto.

(9) A corporate surety bond guaranteeing deposits in a bank, savings

or savings and loan association in excess of federal deposit insurance cor-

poration insurance, underwritten by an insurance company authorized to

do business in the state of Kansas.

(10) Commercial paper that does not exceed 270 days to maturity

and which has received one of the two highest commercial paper credit

ratings by a nationally recognized investment rating firm.

(11) All of such securities shall be current as to interest according to

the terms thereof.

(l) ``Savings bank'' means a savings bank organized under the laws of

the United States or another state insured by the federal deposit insur-

ance corporation or its successor and having a main or branch office in

the county in which a state agency making collection of any fees, tuition,

or charges is located.

(m) ``Savings and loan association'' means a savings and loan associ-

ation incorporated under the laws of this state or organized under the

laws of the United States or another state, insured by the federal deposit

insurance corporation or its successor and having a main or branch office

in the county in which a state agency making collection of any fees, tuition

or charges is located.

(n) ``Custodial bank'' means a bank holding on deposit collateral

which is security for state bank accounts.

(o) ``Centralized securities depository'' means a clearing agency reg-

istered with the securities and exchange commission which provides safe-

keeping and book-entry settlement services to its participants.

(p) ``Depository bank'' means a bank, savings bank or savings and loan

association authorized and eligible to receive state moneys.

(q) ``Main office'' means the place of business specified in the articles

of association, certificate of authority or similar document, where the

business of the institution is carried on and which is not a branch;.

(r) ``Branch'' means any office, agency or other place of business

within this state, other than the main office, at which deposits are re-

ceived, checks paid or money lent with approval of the appropriate reg-

ulatory authorities. Branch does not include an automated teller machine,

remote service unit or similar device;.

(s) ``Securities,'' ``security entitlements,'' ``financial assets,'' ``securities

account,'' ``security agreement,'' ``security interest,'' ``perfection'' and

``control'' shall have the meanings given such terms under the Kansas

uniform commercial code.

Sec. 2. K.S.A. 75-4214 is hereby amended to read as follows: 75-

4214. (a) The board shall designate one or more banks, savings banks or

savings and loan associations in each county in which a state agency mak-

ing collection of any fee, tuition, or charge is located to have a fee agency

account for the deposit of accounts of such agency having an average daily

balance of $10,000 or more.

(b) (a) Any state agency making collection of fees, tuition or charges

any moneys, with the approval of the board, may select a bank, savings

bank or savings and loan association in the county in which the agency is

located to have a fee agency account for the deposit of accounts of such

agency having an average daily balance of less than $10,000 such moneys.

(c) (b) To be eligible to hold a fee agency account as provided under

subsections (a) and (b) subsection (a), any designated bank, savings bank

or savings and loan association must meet the minimum capital require-

ments for a commercial bank as required by the federal deposit insurance

corporation.

(d) (c) At the end of each month any bank, savings bank or savings

and loan association having a fee agency account shall forward to the

board a detailed statement of such account.

Sec. 3. K.S.A. 75-4215 is hereby amended to read as follows: 75-

4215. (a) All fees, tuition and charges of any and whatsoever nature here-

after moneys collected by any state agency shall be remitted daily to the

state treasurer unless otherwise provided under authority specified in this

act authorized by the board to remit less frequently.

(b) Agencies otherwise required to make daily remittances to the

treasurer may make such remittances less frequently if so authorized by

the board, but not less often than monthly.

(c) (b) If a state agency is authorized by the board, fees, tuition and

charges shall be deposited in a to maintain a fee agency account pursuant

to K.S.A. 75-4214, and amendments thereto, any moneys collected by the

state agency shall be deposited daily in the fee agency account designated

by the board. The same. Fee agency account balances shall be remitted

monthly, or more daily or less often if required authorized by the board,

to the state treasurer by such agency drawing on such fee agency account

all moneys therein except such balance as is specified by the board and

except for any balances required for direct refunds of tuition, fees or

charges from such fee agency account authorized under K.S.A. 76-738,

and amendments thereto. When requested, such agency shall file with

the board a detailed and verified report with each deposit showing the

sources from which such fees, tuition and charges moneys were received.

The board shall have the authority to limit specific types of moneys that

can be deposited in a fee agency account.

(d) (c) Fee agency accounts and moneys to be deposited therein shall

be subject to post audit under article 11 of chapter 46 of Kansas Statutes

Annotated.

Sec. 4. K.S.A. 2000 Supp. 1-204 is hereby amended to read as fol-

lows: 1-204. There is hereby created the board of accountancy fee fund.

The board of accountancy shall remit all moneys received by or for it

from fees, charges or penalties to the state treasurer at least monthly in

accordance with the provisions of K.S.A. 75-4215, and amendments

thereto. Upon receipt of each such remittance, the state treasurer shall

deposit the entire amount thereof in the state treasury. Twenty percent

of each such deposit shall be credited to the state general fund and the

balance shall be credited to the board of accountancy fee fund. All ex-

penditures from the board of accountancy fee fund shall be made in

accordance with appropriation acts upon warrants of the director of ac-

counts and reports issued pursuant to vouchers approved by the chair-

person of the board of accountancy or by a person or persons designated

by the chairperson.

Sec. 5. K.S.A. 2000 Supp. 2-205 is hereby amended to read as fol-

lows: 2-205. (a) (1) All moneys received by the state fair board through

the operation of the state fair and from any and all other sources directly

related to the operation of the state fair shall be remitted to the state

treasurer at least monthly in accordance with the provisions of K.S.A. 75-

4215, and amendments thereto. Upon receipt of each such remittance,

the state treasurer shall deposit the entire amount thereof in the state

treasury to the credit of the state fair fee fund, which is hereby created.

(2) During each fiscal year, moneys in the state fair fee fund, and

appropriations for the operation of the state fair from the state general

fund made for the state fair, or the state fair board, may be transferred

from the state treasury to a bank in Reno county, Kansas, to the account

of the state fair board, upon vouchers of the state fair board, to establish

the state fair board local bank account. The moneys in the state fair board

local bank account may be used by the state fair board:

(A) In operating and conducting a state fair, including but not by way

of limitation, the payment of labor, salaries of part-time employees, prizes

and awards and as provided by this section,; and

(B) in operating and promoting nonfair days events. The state trea-

surer and the director of accounts and reports are authorized and directed

to honor all such vouchers and orders of the state fair board, and to make

such transfers as directed.

(3) (A) During each fiscal year, the state fair board may expend mon-

eys on deposit to its credit in the state fair board local bank account, for

the operation and promotion of the state fair and nonfair days events, by

approved vouchers directed to the treasurer of the state fair board and

by the issuance of checks by the treasurer of the board to the persons

entitled thereto as shown upon such vouchers. All such expenditures may

be made without compliance with any of the provisions of any act con-

tained in article 37 of chapter 75 of the Kansas Statutes Annotated, or

acts amendatory of the provisions thereof or supplemental and amend-

ments thereto.

(B) During the period beginning May 1 and extending to October 31

of each year, the state fair board may employ labor and personnel in

conjunction with the current operation of the state fair, without compli-

ance with the provisions of any act contained in article 29 of chapter 75

of the Kansas Statutes Annotated, or acts amendatory of the provisions

thereof or supplemental and amendments thereto. This authority to em-

ploy shall not be construed as authorizing the board to employ its normal

classified service employees on a different basis for all or any part of that

six-month period.

(4) On or before each June 30, all unencumbered moneys on deposit

to the credit of the state fair board in the state fair board local bank

account shall be transferred back to the state treasury to the credit of the

state fair fee fund or appropriation from the state general fund according

as each may be entitled. All moneys in the state fair fee fund may be used

for the payment of checks drawn against the state fair board local bank

account upon vouchers drawn by the state fair board. Upon the close of

accounts for each fiscal year, the state fair board shall submit a full and

complete object classification report for such fiscal year on all moneys

collected by and expended by the state fair board to the director of ac-

counts and reports.

(b) All moneys received by the state fair board through the operation

and promotion of nonfair days events shall be deposited in the state fair

board local bank account for use for nonfair days events by the state fair

board and as provided by this section. All expenses incurred in the op-

eration and promotion of nonfair days events shall be paid from the state

fair board local bank account by issuance of checks by the treasurer of

the state fair board or a person designated by such treasurer.

(c) The state fair board local bank account required for use in oper-

ating and promoting the state fair or nonfair days events under this section

shall be awarded to a bank in Reno county, Kansas, by the pooled money

investment board under a written agreement in accordance with proce-

dures for state bank accounts under K.S.A. 75-4217, and amendments

thereto, and shall be secured by pledge of securities in the manner pre-

scribed for state bank accounts under K.S.A. 75-4218, and amendments

thereto, and in the amount prescribed for fee agency accounts under that

statute.

(d) (1) Upon request of the state fair board, the director of accounts

and reports shall authorize the state fair board to establish a change fund

for the purposes of the state fair for use on those days not designated as

official state fair days in an amount of not to exceed $15,000 to be main-

tained in the form of cash. For the purposes of establishing such change

fund, moneys may be withdrawn from moneys available therefor in the

state fair board local bank account in accordance with the need therefor.

(2) The moneys in a change fund established under this subsection

(d) shall be used exclusively for the making of change in receiving

amounts for the purposes of the state fair on those days not designated

as official state fair days. No advance or expenditure shall be made from

such change fund.

(e) (1) Upon request of the state fair board, the director of accounts

and reports shall authorize the state fair board to establish a change fund

for nonfair days events in an amount of not to exceed $15,000 to be

maintained in the form of cash. For the purposes of establishing a nonfair

days events change fund, moneys may be withdrawn from moneys avail-

able therefor in the state fair board local bank account in accordance with

the need therefor.

(2) The moneys in the nonfair days events change fund shall be used

exclusively for the making of change in receiving amounts in operating

and conducting the nonfair days events during the nonfair days period.

No advance or expenditure shall be made from such change fund.

(f) (1) Except as otherwise provided in this section, each change fund

established under subsection (d) or (e) shall be administered in the same

manner as change funds authorized in accordance with K.S.A. 75-3078,

and amendments thereto, and shall be subject to the procedures and

reimbursement and reporting provisions of that statute or such proce-

dures and reporting requirements as may be prescribed by the director

of accounts and reports under that statute. The director of accounts and

reports may authorize a reconciling entry in any reconciliation statement

for any such change fund in an amount of not to exceed the maximum

authorized by K.S.A. 75-3078, and amendments thereto, for change funds

authorized in accordance with that statute.

(2) All officers and employees of the state fair board having custody

of moneys of a change fund established under subsection (d) or (e) shall

be covered by a blanket surety contract purchased by the committee on

surety bonds and insurance in such amount or amounts and upon such

terms and conditions as the committee on surety bonds and insurance

deems necessary and proper in accordance with the provisions of K.S.A.

75-4103, 75-4104 and 75-4105, and amendments thereto.

(g) As used in this section:

(1) ``Nonfair days event'' means an event held on the state fairgrounds

on those days which have not been designated as official state fair days;

and

(2) ``state fair board local bank account'' means the account estab-

lished and maintained for the state fair board in a bank located in Reno

county, Kansas, as authorized by this section.

(h) On the effective date of this act, the director of accounts and

reports shall transfer all moneys in the nonfair days activities fee fund to

the state fair fee fund. On the effective date of this act, all obligations of

the nonfair days activities fee fund are hereby transferred to and imposed

on the state fair fee fund. On the effective date of this act, the nonfair

days activities fee fund is hereby abolished.

Sec. 6. K.S.A. 2-220 is hereby amended to read as follows: 2-220. (a)

The state fair special cash fund is hereby created in the state treasury.

The state fair board may apply annually to the director of accounts and

reports to establish a change fund for use during the period of the state

fair which shall be maintained in the form of cash from the moneys of

the state fair special cash fund which shall be transferred from the state

treasury to a separate account of the state fair board in a bank in Reno

county, Kansas, in accordance with subsection (c). The director of ac-

counts and reports shall authorize the establishment of such change fund

and shall establish a maximum amount for such change fund of not to

exceed $200,000 in accordance with the need therefor.

(b) After establishing the maximum amount for a change fund under

subsection (a) and not less than 10 days prior to the date fixed for the

commencement of the state fair, the director of accounts and reports shall

transfer an amount of money equal to such maximum amount from the

state general fund to the state fair special cash fund. No such transfer

from the state general fund shall exceed $200,000.

(c) For the purposes of a change fund authorized under this section,

the moneys in the state fair special cash fund may be transferred by

warrant, upon vouchers of the state fair board, from the state treasury to

a separate account of such board in a bank in Reno county, Kansas. This

bank account shall be awarded to a bank in Reno county, Kansas, by the

pooled money investment board under a written agreement in accordance

with procedures for state bank accounts under K.S.A. 75-4217, and

amendments thereto, and shall be secured by pledge of securities in the

manner prescribed for state bank accounts under K.S.A. 75-4218, and

amendments thereto, and in the amount prescribed for fee agency ac-

counts under that statute. The state treasurer and the director of accounts

and reports shall honor all such vouchers and make such transfers as

directed in accordance with this subsection, except that no such transfer

shall be made more than 10 days prior to the date fixed for the com-

mencement of the state fair.

(d) The change fund authorized under this section may be established

by the state fair board not more than five days preceding the date fixed

for the commencement of the state fair. Such change fund shall be main-

tained in the daily amounts necessary for the operation of the state fair

as directed by the state fair board except that no such amount shall exceed

the maximum amount established by the director of accounts and reports

under subsection (a). Prior to the sixth day after the conclusion of the

state fair each year, such change fund shall be finally reconciled and all

the moneys in such change fund shall be deposited in the bank account

of the state fair board from which the change fund was established. Upon

such deposit, all such moneys shall be remitted to the state treasurer in

accordance with the provisions of K.S.A. 75-4215, and amendments

thereto. Upon receipt of each such remittance, the state treasurer shall

deposit the entire amount thereof in the state treasury and the same shall

be credited to the credit of the state fair special cash fund. Each year

upon the crediting of such moneys to the state fair special cash fund and

after the conclusion of the state fair, the director of accounts and reports

shall transfer all moneys in the state fair special cash fund to the state

general fund.

(e) The moneys in the change fund authorized under this section shall

be used exclusively for the making of change in operating and conducting

the state fair during the period of the state fair. No advance or expendi-

ture shall be made from such change fund.

(f) Except as otherwise provided in this section, the change fund au-

thorized by this section shall be administered in the same manner as

change funds authorized in accordance with K.S.A. 75-3078, and amend-

ments thereto, and shall be subject to such procedures and reporting

requirements as may be prescribed by the director of accounts and re-

ports under that statute. The director of accounts and reports may au-

thorize a reconciling entry in any reconciliation statement for the change

fund authorized by this section in an amount of not to exceed the maxi-

mum authorized by K.S.A. 75-3078, and amendments thereto, for change

funds authorized in accordance with that statute.

(g) All officers and employees of the state fair board having custody

of moneys of the change fund authorized by this section shall be covered

by a blanket surety contract purchased by the committee on surety bonds

and insurance in such amount or amounts and upon such terms and con-

ditions as the committee on surety bonds and insurance deems necessary

and proper in accordance with the provisions of K.S.A. 75-4103, 75-4104

and 75-4105, and amendments thereto.

Sec. 7. K.S.A. 2000 Supp. 2-225 is hereby amended to read as fol-

lows: 2-225. (a) The state fair board is hereby authorized to negotiate and

enter into an agreement with the Hutchinson community foundation, a

not-for-profit corporation, for the Hutchinson community foundation to

receive, administer and invest any moneys donated, bequeathed, granted,

awarded or contributed from any private or public source outside the

state treasury for the general benefit of the state fair or for specific capital

improvements, projects, programs, activities or events for the benefit of

the state fair. All moneys received for such purposes by the Hutchinson

community foundation, and all interest earned thereon, shall be depos-

ited, administered and disbursed by the Hutchinson community foun-

dation to the state fair board in accordance with the agreement, after

payment of any applicable fees or expenses authorized by the agreement.

The state fair board shall not enter into any agreement with the Hutch-

inson community foundation under this section until the agreement has

been reviewed and approved by the attorney general.

(b) Upon receipt of any such moneys by the state fair board, the state

fair board shall remit the entire amount of the remittance to the state

treasurer in accordance with the provisions of K.S.A. 75-4215, and

amendments thereto. Upon receipt of each such remittance, the state

treasurer shall deposit the entire amount in the state treasury to the credit

of the state fair fee fund or the state fair capital improvements fund, or

in designated amounts of such remittance to each of such funds as spec-

ified by the state fair board.

Sec. 8. K.S.A. 2-427 is hereby amended to read as follows: 2-427.

The secretary shall remit all moneys received by or for the secretary under

article 4 of chapter 2 of Kansas Statutes Annotated, and amendments

thereto, to the state treasurer at least monthly in accordance with the

provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of

any each such remittance, the state treasurer shall deposit the entire

amount thereof in the state treasury and the same shall be credited to

the credit of the entomology fee fund. 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 secretary of the state board of agriculture or by a person or persons

designated by the secretary.

Sec. 9. K.S.A. 2000 Supp. 2-1011 is hereby amended to read as fol-

lows: 2-1011. (1) It shall be deemed a violation of this act for any man-

ufacturer, importer, jobber, firm, association, corporation or person to

sell, offer or expose for sale, or distribute in this state any commercial

feeding stuffs:

(A) Unless the manufacturer, importer, jobber, firm, association, cor-

poration or person has been issued a license for each manufacturing or

distribution facility pursuant to K.S.A. 2000 Supp. 2-1014, and amend-

ments thereto; (B) which is not labeled as required by law; (C) which

bears a false or misleading statement on the label or the advertising ac-

companying the commercial feeding stuffs; (D) which is adulterated or

contains any substance or substances which may render the commercial

feeding stuffs injurious to the health of livestock, poultry and pets.

(2) It shall be deemed a violation of this act for any manufacturer,

importer, jobber, firm, association, corporation or person to: (A) Mutilate,

destroy, obliterate or remove the label or any part thereof, or do any act

which may result in the misbranding or false labeling of such commercial

feeding stuffs; (B) fail or neglect to file the tonnage report and pay the

inspection fee due thereon as required; (C) file a false report of the ton-

nage of feeding stuffs sold for any period; (D) impede, obstruct, hinder

or otherwise prevent or attempt to prevent said secretary or the secre-

tary's authorized agents in the performance of any duty in connection

with the enforcement of the provisions of article 10 of chapter 2 of the

Kansas Statutes Annotated, and amendments thereto.

(3) Any manufacturer, importer, jobber, firm, association, corpora-

tion or person who shall violate any of the provisions of article 10 of

chapter 2 of the Kansas Statutes Annotated, and amendments thereto, or

the rules and regulations adopted, in a willful or wanton manner shall be

guilty of a misdemeanor, and upon conviction thereof shall be fined not

more than $100 for the first violation and not less than $100 nor more

than $500 for each subsequent violation.

(4) Any commercial feeding stuffs misbranded or adulterated or con-

taining any substance or substances injurious to the health of livestock,

poultry or pets or which is offered or exposed for sale in violation of any

of the provisions of article 10 of chapter 2 of the Kansas Statutes Anno-

tated, and amendments thereto, shall be subject to seizure and may be

condemned, disposed of or sold as the court may direct. The proceeds

from any such sale, and all penalties recovered shall be deposited with

remitted to the state treasurer in accordance with the provisions of K.S.A.

75-4215, and amendments thereto. Upon receipt of each such remittance,

the state treasurer shall deposit the entire amount in the state treasury to

the credit of the commercial feeding stuffs fee fund. The court may in its

discretion release the feeding stuffs so seized when the requirements of

the law have been complied with, and upon payment of all costs and

expenses incurred by the state in any proceedings connected with such

seizure. The seizure proceedings as provided in K.S.A. 41-805, and

amendments thereto, shall be followed. The district courts of the state of

Kansas shall have jurisdiction to restrain violations of this act by injunc-

tion.

Sec. 10. K.S.A. 2000 Supp. 2-1012 is hereby amended to read as

follows: 2-1012. The secretary shall remit all moneys received by or for

the secretary under article 10 of chapter 2 of Kansas Statutes Annotated,

and amendments thereto, to the state treasurer at least monthly in ac-

cordance with the provisions of K.S.A. 75-4215, and amendments thereto.

Upon receipt of any each such remittance, the state treasurer shall deposit

the entire amount thereof in the state treasury and the same shall be

credited to the credit of the feeding stuffs fee fund. On and after July 1,

2000, through June 30, 2002, an amount not to exceed $35,000 per year

may be used to fund plant pest activities. All expenditures from the feed-

ing stuffs fee 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 secretary of the department of agriculture or

by a person or persons designated by the secretary.

Sec. 11. K.S.A. 2000 Supp. 2-1205 is hereby amended to read as

follows: 2-1205. An inspection fee shall be collected upon all commercial

fertilizers sold, offered or exposed for sale, or distributed in Kansas, which

shall be at a rate per ton of 2,000 pounds fixed by rules and regulations

adopted by the secretary of agriculture, except that such rate shall not

exceed $1.67 per ton of 2,000 pounds. The secretary of agriculture may

adopt rules and regulations establishing the inspection fee rate under this

section. Each person registering any commercial fertilizer shall pay the

inspection fee on such commercial fertilizer sold, offered or exposed for

sale, or distributed in Kansas, and shall keep adequate records showing

the tonnage of each commercial fertilizer shipped to or sold, offered or

exposed for sale, or distributed in Kansas, and the secretary, and duly

authorized representatives of the secretary, shall have authority to ex-

amine such records and other pertinent records necessary to verify the

statement of tonnage.

Each person registering any commercial fertilizer shall file an affidavit

semiannually, with the secretary, within 30 days after each January 1 and

each July 1, showing the tonnage of commercial fertilizer sold or distrib-

uted in Kansas for the preceding six-month period, and shall pay to the

secretary the inspection fee due thereon for such six-month period, except

that the registrant shall not be required to pay the inspection fee or report

the tonnage of commercial fertilizers or fertilizer materials sold and

shipped directly to fertilizer manufacturers or mixers, but the fertilizer

manufacturers or mixers shall keep adequate records of the commercial

fertilizers sold or distributed in this state, and report to the secretary the

tonnage thereof and pay the inspection fee due thereon. If the affidavit

is not filed and the inspection fee is not paid within the thirty-day period,

or if the report of tonnage is false, the secretary may revoke the registra-

tions filed by such person; and if the affidavit is not filed and the inspec-

tion fee is not paid within the thirty-day period, or any extension thereof

granted by the secretary, a penalty of $5 per day shall be assessed against

the registrant and the inspection fee and penalty shall constitute a debt

and become the basis for a judgment against such person. The secretary

may grant a reasonable extension of time.

The secretary of the department of agriculture is hereby authorized

and empowered to reduce the inspection fee by adopting rules and reg-

ulations under this section whenever it shall determine that the inspection

fee is yielding more than is necessary for the purpose of administering

the provisions of this act as listed below and the plant pest act, and the

secretary is hereby authorized and empowered to increase the inspection

fee by adopting rules and regulations under this section when it finds that

such is necessary to produce sufficient revenues for the purposes of ad-

ministering the provisions of this act, but not in excess of the maximum

fee prescribed by this section. The secretary shall remit all moneys re-

ceived by or for the secretary under article 12 of chapter 2 of Kansas

Statutes Annotated, and amendments thereto, to the state treasurer at

least monthly in accordance with the provisions of K.S.A. 75-4215, and

amendments thereto. Upon receipt of any each such remittance, the state

treasurer shall deposit the entire amount in the state treasury and shall

credit the such remittance as follows: (1) An amount equal to $1.40 per

ton shall be credited to the state water plan fund created by K.S.A. 82a-

951, and amendments thereto; (2) an amount equal to $.04 per ton shall

be credited to the fertilizer research fund; and (3) the remainder shall be

credited to the fertilizer fee fund. On and after July 1, 2000, through June

30, 2002, an amount not to exceed $35,000 per year may be used to fund

plant pest activities. All expenditures from the fertilizer fee 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

secretary of the department of agriculture or by a person or persons

designated by the secretary.

Sec. 12. K.S.A. 2000 Supp. 2-1421a is hereby amended to read as

follows: 2-1421a. (a) (1) Each wholesaler shall register with the secretary

and shall pay a registration fee not to exceed $300. The current wholesale

registration fee is hereby set at $175 and shall remain at that amount until

changed by rules and regulations of the secretary.

(2) Each retailer shall register with the secretary and shall pay a reg-

istration fee not to exceed $30. The current retailer registration fee is

hereby set at $10 and shall remain at that amount until changed by rules

and regulations of the secretary.

(3) Registration shall be required for each place of business at which

agricultural seed is sold, offered or exposed for sale by the wholesaler or

retailer.

(4) An individual who conducts a wholesaler and retailer business at

the same location shall be required to register as both a wholesaler and

retailer.

(b) Application for registration shall be made on a form provided by

the secretary. Each registration for a wholesaler or retailer shall expire

on August 31 following the date of issuance unless such registration is

renewed annually.

(c) Each seed conditioner shall register with the secretary. Such seed

conditioner registration shall require no registration fee and shall be a

biennial registration. Any seed conditioner who is ceasing to do business

as a seed conditioner shall notify the department of agriculture within 30

days of ceasing to do business.

(d) As used in this section, ``agricultural seed'' shall include grain

when sold as such, or when sold according to grain standards and the

seller knows, or has reason to know, that the grain is to be used for seeding

or planting purposes.

(e) The secretary shall remit all moneys received under this section

to the state treasurer at least monthly in accordance with the provisions

of K.S.A. 75-4215, and amendments thereto. Upon receipt of any each

such remittance, the state treasurer shall deposit the entire amount

thereof in the state treasury to the credit of the agricultural seed fee fund

which is hereby created. 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 sec-

retary or a person or persons designated by the secretary.

(f) All moneys credited to the agricultural seed fee fund shall be ex-

pended for any purpose consistent with the Kansas seed law.

(g) The secretary may adopt rules and regulations necessary to ad-

minister the provisions of this act.

(h) This section shall be part of and supplemental to the Kansas seed

law, K.S.A. 2-1415 et seq., and amendments thereto.

Sec. 13. K.S.A. 2-1425 is hereby amended to read as follows: 2-1425.

(a) Any person may submit to the state seed laboratory samples of agri-

cultural seed for germination or purity tests, or both, or other examination

and receive the test upon paying to the secretary a fee per sample, test

or examination as the state board of agriculture may decide. The state

board of agriculture shall establish by rule and regulation a schedule of

fees for seed testing and examination to be used as the basis of charges.

Such fees shall not be less than $5 or more than $45 per test or exami-

nation. The secretary may extend credit for work done, and the sender

of the sample may be invoiced for such charges from time to time. Testing

shall be discontinued for any person who fails to pay such charges within

30 days after invoice is issued. The limitation on free tests shall not apply

to the state boards, commissions or educational, penal or eleemosynary

institutions. The state seed laboratory shall not be obligated to analyze

any uncleaned, unprocessed, and other time-consuming sample or any

sample which obviously does not meet state seed law requirements.

(b) The secretary shall remit all moneys received by or for the sec-

retary under article 14 of chapter 2 of Kansas Statutes Annotated, and

amendments thereto, to the state treasurer at least monthly in accordance

with the provisions of K.S.A. 75-4215, and amendments thereto. Upon

receipt of any each such remittance, the state treasurer shall deposit the

entire amount thereof in the state treasury and the same shall be credited

to the credit of the seed examination fee fund. 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 ap-

proved by the secretary of the state board of agriculture or by a person

or persons designated by the secretary.

Sec. 14. K.S.A. 2-2128 is hereby amended to read as follows: 2-2128.

The secretary shall remit all moneys received by or for the secretary under

article 21 of chapter 2 of Kansas Statutes Annotated, and amendments

thereto, to the state treasurer at least monthly in accordance with the

provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of

any each such remittance, the state treasurer shall deposit the entire

amount thereof in the state treasury and the same shall be credited to

the credit of the entomology fee fund. 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 secretary of the state board of agriculture or by a person or persons

designated by the secretary.

Sec. 15. K.S.A. 2-2212 is hereby amended to read as follows: 2-2212.

The secretary shall remit all moneys received by or for the secretary under

article 22 of chapter 2 of the Kansas Statutes Annotated, and amendments

thereto, to the state treasurer at least monthly in accordance with K.S.A.

75-4215, and amendments thereto. Upon receipt of any each such remit-

tance, the state treasurer shall deposit the entire amount thereof in the

state treasury and the same shall be credited to the credit of the agricul-

tural chemical fee fund. 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 sec-

retary of the state board of agriculture or by a person or persons desig-

nated by the secretary.

Sec. 16. K.S.A. 2-2440e is hereby amended to read as follows: 2-

2440e. (a) Any pesticide business licensee who violates any of the provi-

sions of K.S.A. 2-2453 or 2-2454, and amendments thereto, in addition

to any other penalty provided by law, may incur a civil penalty imposed

under subsection (b) in the amount fixed by rules and regulations of the

secretary in an amount not less than $100 nor more than $5,000 for each

violation and, in the case of a continuing violation, every day such violation

continues shall be deemed a separate violation.

(b) A duly authorized agent of the secretary, upon a finding that a

pesticide business licensee or any employee or agent thereof or any per-

son or entity required to be licensed as a pesticide business licensee who

violates any of the provisions of K.S.A. 2-2453 and 2-2454, and amend-

ments thereto, may impose a civil penalty as provided in this section upon

such licensee.

(c) No civil penalty shall be imposed pursuant to this section except

upon the written order of the duly authorized agent of the secretary to

the pesticide business licensee who committed the violation. Such order

shall state the violation, the penalty to be imposed and the right of such

pesticide business licensee to appeal to the secretary. Any such licensee,

within 20 days after notification, may make written request to the sec-

retary for a hearing or informal conference hearing in accordance with

the provisions of the Kansas administrative procedure act. The secretary

shall affirm, reverse or modify the order and shall specify the reasons

therefor.

(d) Any person aggrieved by an order of the secretary made under

this section may appeal such order to the district court in the manner

provided by the act for judicial review and civil enforcement of agency

actions.

(e) Any civil penalty recovered pursuant to the provisions of this sec-

tion shall be remitted to the state treasurer, deposited. Upon receipt of

each such remittance, the state treasurer shall deposit the entire amount

in the state treasury and credited to the credit of the state general fund.

(f) This section shall be a part of and supplemental to the Kansas

pesticide law.

Sec. 17. K.S.A. 2000 Supp. 2-2464a is hereby amended to read as

follows: 2-2464a. The secretary shall remit all moneys received by or for

the secretary under this act and amendments thereto, to the state trea-

surer at least monthly in accordance with the provisions of K.S.A. 75-

4215, and amendments thereto. On and after the effective date of this act

through June 30, 1999, upon receipt of any such remittance, the state

treasurer shall deposit the entire amount thereof in the state treasury and

amount equal to $12 per category of pesticide business license shall be

credited to the laboratory equipment fund created by K.S.A. 2000 Supp.

74-554, and amendments thereto, and the remainder shall be credited to

the pesticide use fee fund. On and after July 1, 1999, Upon receipt of

any each such remittance, the state treasurer shall deposit the entire

amount thereof in the state treasury and the same shall be credited to

the credit of the pesticide use fee fund. All expenditures from the pesti-

cide use fee 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 secretary of the state board of agriculture or

by a person or persons designated by such secretary.

Sec. 18. K.S.A. 2-2478 is hereby amended to read as follows: 2-2478.

(a) Following the establishment of any pesticide management area, all

persons shall use pesticides consistently with the provisions of the pesti-

cide management plan for the pesticide management area. Any person

who applies pesticides in violation of a plan of an established pesticide

management area may incur a civil penalty in the amount fixed by rules

and regulations of the secretary in an amount not less than $100 nor more

than $5,000 for each violation.

(b) No civil penalty shall be imposed pursuant to this section except

upon the written order of the secretary or the secretary's duly authorized

agent to the person who committed the violation. Such order shall state

the violation, the penalty to be imposed and the right of such person to

appeal to the secretary. Any such person, within 20 days after notification,

may make written request to the secretary for a hearing or informal con-

ference hearing in accordance with the provisions of the Kansas admin-

istrative procedure act. The secretary shall affirm, reverse or modify the

order and shall specify the reasons therefor.

(c) Any person aggrieved by an order of the secretary made under

this section may appeal such order to the district court in the manner

provided by the act for judicial review and civil enforcement of agency

actions.

(d) Any civil penalty recovered pursuant to the provisions of this sec-

tion shall be remitted to the state treasurer, deposited. Upon receipt of

each such remittance, the state treasurer shall deposit the entire amount

in the state treasury and credited to the credit of the state general fund.

Sec. 19. K.S.A. 2000 Supp. 2-2507 is hereby amended to read as

follows: 2-2507. (a) For the purpose of financing the administration and

enforcement of this act, there is hereby levied an inspection fee on all

eggs sold, offered or exposed for sale to food purveyors or consumers at

the rate of 3.5 mills for each dozen eggs. Such fees shall be paid quarterly,

but in no event shall the remittance for any quarter be less than $15. If

the department finds that the above fees are providing more funds than

necessary for the administration of this act, the department may reduce

the above-mentioned fee by rules and regulations, and in like manner

may increase such fee when necessary, but not to exceed the rate specified

above. The secretary shall provide inspection fee stamps for sale to per-

sons desiring them. The price of such stamps shall include the printing

and mailing costs thereof. Such inspection fee stamps shall also serve as

a label indicating size and quality in boldface type letters not less than 3/8

inch in height. Persons desiring to report and pay the inspection fee quar-

terly, in lieu of using inspection fee stamps, may make application to the

secretary for a permit to pay the inspection fee quarterly.

(b) The secretary may grant the permit if the applicant agrees to keep

such records as may be necessary to indicate accurately the quantity of

eggs sold on which the inspection fee is due, and if the applicant agrees

to grant the secretary or a duly authorized representative of the secretary

permission to verify the statement of quantity of eggs sold. The report

shall be filed in the office of the secretary, and shall be due and payable

on the first day of October, January, April, and July for the previous three

months. If the report is not filed and the inspection fee paid within 30

days after the due date, or if the report of quantity is false, the secretary

may revoke the permit. In addition to the inspection fee there may be

assessed against the permit holder a penalty of $5 per day for each day

the inspection fee remains unpaid after the thirty-day period. Such re-

cords of quantity sold shall be held for a period of three years. The sec-

retary shall remit all moneys received by or for the secretary under article

25 of chapter 2 of Kansas Statutes Annotated, and amendments thereto,

to the state treasurer at least monthly in accordance with the provisions

of K.S.A. 75-4215, and amendments thereto. Upon receipt of any each

such remittance, the state treasurer shall deposit the entire amount

thereof in the state treasury and the same shall be credited to the credit

of the egg fee fund. All expenditures from such fund shall be made in

accordance with appropriation acts upon warrants of the director of ac-

counts and reports issued pursuant to vouchers approved by the secretary

of agriculture or by a person or persons designated by the secretary.

Sec. 20. K.S.A. 2-2814 is hereby amended to read as follows: 2-2814.

The secretary shall remit all moneys received by or for him or her the

secretary under this act to the state treasurer at least monthly in accord-

ance with the provisions of K.S.A. 75-4215, and amendments thereto.

Upon receipt of any each such remittance, the state treasurer shall deposit

the entire amount thereof in the state treasury and the same shall be

credited to the credit of the soil amendment fee fund. 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 vouch-

ers approved by the secretary of the state board of agriculture or by a

person or persons designated by him or her the secretary.

Sec. 21. K.S.A. 2000 Supp. 2-2911 is hereby amended to read as

follows: 2-2911. The secretary shall remit all moneys received by or for

the secretary under this act to the state treasurer at least monthly in

accordance with the provisions of K.S.A. 75-4215, and amendments

thereto. Upon receipt of any each such remittance, the state treasurer

shall deposit the entire amount thereof in the state treasury and the same

shall be credited to the credit of the agricultural liming materials fee fund,

which fund is hereby created. On and after July 1, 2000, through June

30, 2002, an amount not to exceed $5,000 per year may be used to fund

plant pest activities. All expenditures from such fund shall be made in

accordance with appropriation acts upon warrants of the director of ac-

counts and reports issued pursuant to vouchers approved by the secretary

of the department of agriculture or by a person or persons designated by

the secretary.

Sec. 22. K.S.A. 2000 Supp. 2-3315 is hereby amended to read as

follows: 2-3315. The secretary shall remit all moneys received under this

act to the state treasurer at least monthly in accordance with the provi-

sions of K.S.A. 75-4215, and amendments thereto. On and after the ef-

fective date of this act through June 30, 1999, upon receipt of any such

remittance, the state treasurer shall deposit the entire amount thereof in

the state treasury and an amount equal to $5 for each chemigation user's

permit shall be credited to the laboratory equipment fund created by

K.S.A. 2000 Supp. 74-554, and amendments thereto, and the remainder

shall be credited to the chemigation fee fund. On and after July 1, 1999,

Upon receipt of any each such remittance, the state treasurer shall deposit

the entire amount thereof in the state treasury and the same shall be

credited to the credit of the chemigation fee fund. All expenditures from

the chemigation fee 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 secretary of the state board of agriculture

or by a person or persons designated by the secretary.

Sec. 23. K.S.A. 2-3317 is hereby amended to read as follows: 2-3317.

(a) Any person who violates any of the provisions of the Kansas chemi-

gation safety law, in addition to any other penalty provided by law, may

incur a civil penalty imposed under subsection (b) in the amount fixed by

rules and regulations of the secretary in an amount not less than $100

nor more than $5,000 for each violation and, in the case of a continuing

violation, every day such violation continues shall be deemed a separate

violation.

(b) A duly authorized agent of the secretary, upon a finding that a

person or any employee or agent has violated the Kansas chemigation

safety law, may impose a civil penalty as provided in this section upon

such person.

(c) No civil penalty shall be imposed pursuant to this section except

upon the written order of the duly authorized agent of the secretary to

the person who committed the violation. Such order shall state the vio-

lation, the penalty to be imposed and the right of such person to appeal

to the secretary. Any such person, within 20 days after notification, may

make written request to the secretary for a hearing or informal conference

hearing in accordance with the provisions of the Kansas administrative

procedure act. The secretary shall affirm, reverse or modify the order and

shall specify the reasons therefor.

(d) Any person aggrieved by an order of the secretary made under

this section may appeal such order to the district court in the manner

provided by the act for judicial review and civil enforcement of agency

actions.

(e) Any civil penalty recovered pursuant to the provisions of this sec-

tion shall be remitted to the state treasurer, deposited. Upon receipt of

each such remittance, the state treasurer shall deposit the entire amount

in the state treasury and credited to the credit of the state general fund.

(f) This section shall be a part of and supplemental to the Kansas

chemigation safety law.

Sec. 24. K.S.A. 2000 Supp. 8-116a is hereby amended to read as

follows: 8-116a. (a) When an application is made for a vehicle which has

been assembled, reconstructed, reconstituted or restored from one or

more vehicles, or the proper identification number of a vehicle is in doubt,

the procedure in this section shall be followed. The owner of the vehicle

shall request the Kansas highway patrol to check the vehicle. At the time

of such check the owner shall supply the highway patrol with information

concerning the history of the various parts of the vehicle. Such informa-

tion shall be supplied by affidavit of the owner, if so requested by the

highway patrol. If the highway patrol is satisfied that the vehicle contains

no stolen parts, it shall assign an existing or new identification number to

the vehicle and direct the places and manner in which the identification

number is to be located and affixed or implanted. A charge of $10 per

hour or part thereof, with a minimum charge of $10, shall be made to

the owner of a vehicle requesting check under this subsection, and such

charge shall be paid prior to the check under this section. When a check

has been made under subsection (b), not more than 60 days prior to a

check of the same vehicle identification number, requested by the owner

of the vehicle to obtain a regular certificate of title in lieu of a nonhighway

certificate of title or obtain a rebuilt salvage title in lieu of a salvage title,

no charge shall be made for such second check.

(b) Any person making application for any original Kansas title for a

used vehicle which, at the time of making application, is titled in another

jurisdiction, as a condition precedent to obtaining any Kansas title, shall

have such vehicle checked by the Kansas highway patrol for verification

that the vehicle identification number shown on the foreign title is gen-

uine and agrees with the identification number on the vehicle. Checks

under this section may include inspection for possible violation of K.S.A.

21-3757, and amendments thereto, or other evidence of possible fraud.

The verification shall be made upon forms prescribed by the division of

vehicles which shall contain such information as the secretary of revenue

shall require by rules and regulations. A charge of $10 per hour or part

thereof, with a minimum charge of $10, shall be made for checks under

this subsection. When a vehicle is registered in another state, but is fi-

nanced by a Kansas financial institution and is repossessed in another

state and such vehicle will not be returned to Kansas, the check required

by this subsection (b) shall not be required to obtain a valid Kansas title

or registration.

(c) As used in this act, ``identification number'' or ``vehicle identifi-

cation number'' means an identifying number, serial number, engine

number, transmission number or other distinguishing number or mark,

placed on a vehicle, engine, transmission or other essential part by its

manufacturer or by authority of the division of vehicles or the Kansas

highway patrol or in accordance with the laws of another state or country.

(d) The checks made under subsection (b) may be made by:

(1) A designee of the superintendent of the Kansas highway patrol;

or

(2) an employee of a new vehicle dealer, as defined in subsection (b)

of K.S.A. 8-2401, and amendments thereto, for the purposes provided for

in subsection (f). For checks made by a designee, $1 of each charge shall

be remitted to the Kansas highway patrol and the balance of such charges

shall be retained by such designee. When a check is made under either

subsection (a) or (b) by personnel of the Kansas highway patrol or when

a check is made under subsection (b) by an employee of a new vehicle

dealer, the entire amount of the charge therefor shall be paid to the

highway patrol.

(e) There is hereby created the vehicle identification number fee

fund. The Kansas highway patrol shall remit all moneys received by the

Kansas highway patrol from fees collected under subsection (d) to the

state treasurer at least monthly in accordance with the provisions of K.S.A.

75-4215, and amendments thereto. Upon receipt of each such remittance,

the state treasurer shall deposit the entire amount in the state treasury

to the credit of the vehicle identification number fee fund. All expendi-

tures from the vehicle identification number fee fund shall be made in

accordance with appropriations acts upon warrants of the director of ac-

counts and reports issued pursuant to vouchers approved by the super-

intendent of the Kansas highway patrol or by a person or persons desig-

nated by the superintendent.

(f) An employee of a new vehicle dealer, who has received initial

training and certification from the highway patrol, and has met continuing

certification requirements, in accordance with rules and regulations

adopted by the superintendent of the highway patrol, may provide the

checks under subsection (b), in accordance with rules and regulations

adopted by the superintendent of the highway patrol, on motor vehicles

repurchased or reacquired by a manufacturer, distributor or financing

subsidiary of such manufacturer and which are purchased by the new

vehicle dealer. At any time, after a hearing in accordance with the pro-

visions of the Kansas administrative procedure act, the superintendent of

the highway patrol may revoke, suspend, decline to renew or decline to

issue certification for failure to comply with the provisions of this sub-

section, including any rules and regulations.

Sec. 25. K.S.A. 2000 Supp. 8-132 is hereby amended to read as fol-

lows: 8-132. (a) Subject to the provisions of this section and K.S.A. 8-

1,125, and amendments thereto, the division of vehicles shall furnish to

every owner whose vehicle shall be registered one license plate for such

vehicle. Such license plate shall have displayed on it the registration num-

ber assigned to the vehicle and to the owner thereof, the name of the

state, which may be abbreviated, and the year or years for which it is

issued. The same type of license plates shall be issued for passenger motor

vehicles, rented without a driver, as are issued for private passenger ve-

hicles.

(b) During calendar year 1975 commencing on the effective date of

this act, and during every fifth calendar year thereafter, the division of

vehicles, shall furnish one license plate for any type of vehicle an owner

registers or has the registration thereof renewed, but during the suc-

ceeding four-year period following calendar year 1975 and during the

succeeding four-year period following every fifth calendar year subse-

quent to 1975, the division of vehicles shall not furnish any license plate

for the renewal of a vehicle's registration. During calendar year 1976 and

during each calendar year thereafter in which a license plate is not issued

for the renewal of registration of a vehicle, the division of vehicles shall

furnish one decal for the license plate issued for a vehicle as provided in

K.S.A. 8-134, and amendments thereto, for each registration and renewal

of registration of such vehicle. Notwithstanding the foregoing provisions

of this subsection, whenever, in the discretion of the director of vehicles,

it is determined that the license plates currently being issued and dis-

played are not deteriorating to the extent that their replacement is war-

ranted, the director may adopt rules and regulations to extend the five-

year issuance cycle provided for in this subsection by one year at a time,

and in the same manner the director may further extend such cycle by

one year at a time, successively as the director determines appropriate.

If the cycle is extended, at the expiration of the extended term, new

license plates shall again be issued in the manner and for the term pro-

vided in such rules and regulations.

(c) Two personalized license plates may be issued to any owner or

lessee of a passenger vehicle or a truck licensed for a gross weight of not

more than 20,000 pounds, who makes proper application to the division

of vehicles not less than 60 days prior to such owner's or lessee's renewal

of registration date. Such application shall be on a form prescribed by

the division and accompanied by a fee of $40, which shall be in addition

to any other fee required to renew the registration of such passenger

vehicle under the laws of this state. One such personalized license plate

shall be displayed on the rear of the vehicle and the other shall be dis-

played on the front of the vehicle. One personalized license plate may be

issued to any owner of a motorcycle upon proper application in the same

manner provided in this subsection (c) for passenger vehicles and trucks.

Such personalized license plate shall be displayed on the rear of the mo-

torcycle. Such fee shall be paid only once during the registration period

for which such license plates were issued, and any subsequent renewals

during the registration period shall be subject only to the registration fee

prescribed by K.S.A. 8-143, and amendments thereto. The division shall

design distinctive, personalized license plates to be issued which shall

contain not more than seven letters or numbers on truck or passenger

vehicle license plates and not more than five letters or numbers on mo-

torcycle license plates, or a combination thereof, to be designated by the

applicant in lieu of the letters and numbers required by K.S.A. 8-147, and

amendments thereto, other than the letters required to designate the

county in which such vehicle is registered. Unless the letters or numbers

designated by the applicant have been assigned to another vehicle of the

same type registered in the same county, or unless the letters or numbers

designated by the applicant have a profane, vulgar, lewd or indecent

meaning or connotation, as determined by the director of vehicles, the

division shall assign such letters or numbers to the applicant's vehicle,

and the letters or numbers, or combination thereof, so assigned shall be

deemed the registration number of such vehicle. Subject to the foregoing

provisions, all license plates issued under this section shall be manufac-

tured in accordance with K.S.A. 8-147, and amendments thereto. Such

license plates shall be issued for a registration period of five years com-

mencing in 1985 and each five years thereafter.

The secretary of revenue shall adopt rules and regulations necessary to

carry out the provisions of this act, including, without limitation, rules

and regulations concerning (1) the procedure for insuring that duplicate

license plates are not issued in the same county, (2) the procedure for

reserving distinctive license plates for the purpose of obtaining the same

on each annual renewal of registration, (3) the procedure for allowing the

transfer of personalized license plates from one vehicle to another for

which such license plates were originally issued, when the title to the

original vehicle has not been transferred and the name or names of the

owner or owners listed on the titles to both vehicles are identical, and (4)

procedures necessary to coordinate this act with other laws of this state

governing registration of vehicles. The director of vehicles shall remit all

moneys received by the division of vehicles under this section to the state

treasurer at least monthly in accordance with the provisions of K.S.A. 75-

4215, and amendments thereto. Upon receipt of each such remittance,

the state treasurer shall deposit the entire amount thereof in the state

treasury to the credit of the state highway fund.

Sec. 26. K.S.A. 2000 Supp. 8-143g is hereby amended to read as

follows: 8-143g. A motor vehicle dealer licensed in this state or in a state

contiguous to this state, who is the owner of a truck or truck tractor which

the owner desires to demonstrate under actual working conditions by

having it operated by the prospective purchaser in interstate or intrastate

commerce on the highways of this state, in lieu of obtaining a regular

registration for such vehicle, may obtain from the division, or an agent

designated by director of vehicles, a trip permit authorizing such dem-

onstration and operation for a period of: (a) Seventy-two hours upon

making proper application and the payment of a fee of $26; or (b) fifteen

days upon making proper application and the payment of a fee of $100.

A dealer may purchase such demonstration permits in multiples of three

upon making proper application and the payment of required fees. The

application shall be to the division on a form prescribed and furnished by

the director of vehicles. The name of the prospective purchaser must be

shown on the application. A dealer purchasing permits in multiples, shall

complete the application and permit as required by the division and mail

a copy of such application to the division within 24 hours from the date

of issuance of such permit. Only one such permit may be used by the

same prospective purchaser on the same truck or truck tractor. Whenever

a truck or truck tractor is operated under the authority of a trip permit

issued hereunder it also shall have displayed thereon a dealer's registra-

tion plate which has been issued by this state or a state contiguous to this

state to the dealer who is the owner of such truck or truck tractor. The

provision of K.S.A. 8-136, and amendments thereto, prohibiting the haul-

ing of commodities in excess of two tons by a vehicle displaying a dealer

plate shall not apply to a truck or truck tractor being operated under a

trip permit as authorized by this section. This section shall be construed

as a part of and supplementary to the motor vehicle registration law of

this state. The division shall remit all fees collected under this section

shall be paid into the state treasury by the division and to the state trea-

surer in accordance with the provisions of K.S.A. 75-4215, and amend-

ments thereto. Upon receipt of each such remittance, the state treasurer

shall deposit the entire amount in the state treasury shall credit the same

to the credit of the state highway fund.

Sec. 27. K.S.A. 2000 Supp. 8-145 is hereby amended to read as fol-

lows: 8-145. (a) All registration and certificates of title fees shall be paid

to the county treasurer of the county in which the applicant for registra-

tion resides or has an office or principal place of business within this state,

and the county treasurer shall issue a receipt in triplicate, on blanks fur-

nished by the division of vehicles, one copy of which shall be filed in the

county treasurer's office, one copy shall be delivered to the applicant and

the original copy shall be forwarded to the director of vehicles.

(b) The county treasurer shall deposit $.75 of each license applica-

tion, $.75 out of each application for transfer of license plate and $2 out

of each application for a certificate of title, collected by such treasurer

under this act, in a special fund, which fund is hereby appropriated for

the use of the county treasurer in paying for necessary help and expenses

incidental to the administration of duties in accordance with the provi-

sions of this law and extra compensation to the county treasurer for the

services performed in administering the provisions of this act, which com-

pensation shall be in addition to any other compensation provided by any

other law, except that the county treasurer shall receive as additional

compensation for administering the motor vehicle title and registration

laws and fees, a sum computed as follows: The county treasurer, during

the month of December, shall determine the amount to be retained for

extra compensation not to exceed the following amounts each year for

calendar year 1990 or any calendar year thereafter: The sum of $60 per

hundred registrations for the first 5,000 registrations; the sum of $45 per

hundred registrations for the next 5,000 registrations; and the sum of $2

per hundred registrations for all registrations thereafter. In no event,

however, shall any county treasurer be entitled to receive more than

$9,800 additional annual compensation.

If more than one person shall hold the office of county treasurer during

any one calendar year, such compensation shall be prorated among such

persons in proportion to the number of weeks served. The total amount

of compensation paid the treasurer together with the amounts expended

in paying for other necessary help and expenses incidental to the admin-

istration of the duties of the county treasurer in accordance with the

provisions of this act, shall not exceed the amount deposited in such spe-

cial fund. Any balance remaining in such fund at the close of any calendar

year shall be withdrawn and credited to the general fund of the county

prior to June 1 of the following calendar year.

(c) The county treasurer shall remit the remainder of all such fees

collected, together with the original copy of all applications, to the sec-

retary of revenue. Except as provided in subsection (d), The secretary of

revenue shall remit all such fees remitted to the secretary of revenue shall

be deposited with the state treasurer and credited in accordance with the

provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of

each such remittance, the state treasurer shall deposit the entire amount

in the state treasury to the credit of the state highway fund, except as

provided in subsection (d).

(d) (1) On July 1, 1997, through June 30, 2004, $2.50 of each certif-

icate of title fee collected and remitted to the secretary of revenue, shall

be deposited with remitted to the state treasurer and credited who shall

credit such $2.50 to the Kansas highway patrol motor vehicle fund. On

July 1, 1999, through June 30, 2002, $1 of each certificate of title fee

collected and remitted to the secretary of revenue, shall be deposited

with remitted to the state treasurer and credited who shall credit such $1

to the VIPS/CAMA technology hardware fund.

(2) For repossessed vehicles, $3 of each certificate of title fee col-

lected and remitted to the secretary of revenue, shall be deposited with

remitted to the state treasurer and credited who shall credit such $3 to

the repossessed certificates of title fee fund.

Sec. 28. K.S.A. 2000 Supp. 8-146 is hereby amended to read as fol-

lows: 8-146. The division of vehicles shall, at least monthly, deposit all

fees remitted to remit all fees received by the division under this act with

to the state treasurer and credited in accordance with the provisions of

K.S.A. 75-4215, and amendments thereto. Upon receipt of each such re-

mittance, the state treasurer shall deposit the entire amount in the state

treasury and credit such fees in accordance with K.S.A. 8-145, and

amendments thereto.

Sec. 29. K.S.A. 2000 Supp. 8-1,101 is hereby amended to read as

follows: 8-1,101. (a) An owner engaged in operating a fleet in this state

in interstate commerce may, in lieu of registration of such fleet under

the provisions of K.S.A. 8-126 to 8-149, inclusive, and amendments

thereto, register such fleet for operation in this state upon payment of

fees prescribed by this act and the filing of an application with the division

of vehicles in a manner and upon a form prescribed by the division, or in

accordance with the provisions of any apportioned fleet registration

agreement made by this state. The application shall be signed by the

owner, if an individual, or an officer or proper representative of an entity

other than an individual, and such application shall contain the following

and any other information pertinent to the registration of a fleet as the

division of vehicles may require: (1) Name and base address of the owner

of the fleet; (2) total fleet miles; and (3) a description of each fleet vehicle

by year of manufacture, name of manufacturer, the identification or serial

number, the declared gross weight of each motor vehicle, and the number

of axles under each listed fleet vehicle.

(b) Fleet vehicles so registered shall be determined to be fully li-

censed and registered in this state, and shall be exempt from further

registration and license fees under the provisions of K.S.A. 8-126 to 8-

149, inclusive, and amendments thereto, but nothing in this act shall be

deemed to relieve any owner of fleet vehicles operated in intrastate com-

merce in this state, from any duty to register and operate in conformity

with requirements of the state corporation commission.

(c) If so authorized by any bilateral or multijurisdictional agreement

lawfully entered into by the director of vehicles, the director may collect

and forward applicable registration fees and applications to other juris-

dictions and may take such other action on behalf of the applicant or

another jurisdiction as will facilitate the administration of such agree-

ments, including deposits for the state of Kansas and disbursal of refunds.

Amounts collected under such agreements shall be remitted by the di-

rector to the state treasurer daily in accordance with the provisions of

K.S.A. 75-4215, and amendments thereto. Upon receipt of each such re-

mittance, the state treasurer shall deposit the entire amount in the state

treasury and credit such amount to the credit of the international regis-

tration plan clearing fund. Payments due and owing to member jurisdic-

tions under any bilateral or multijurisdictional agreement and refunds for

overpayment of fees shall be made from such fund. The director shall

reconcile such clearing fund balances monthly and transfer the balance

to the state highway fund. The funds shall be invested in the same manner

as provided in K.S.A. 68-2324, and amendments thereto, and all earnings

shall be deposited in the state treasury and credited to the state highway

fund.

Sec. 30. K.S.A. 2000 Supp. 8-1,112 is hereby amended to read as

follows: 8-1,112. Whenever the director of vehicles shall make an agree-

ment, consent, arrangement, contract or declaration with the proper au-

thority of another jurisdiction for the apportioned registration of fleet

vehicles, each commercial truck and truck tractor which is based or reg-

istered in such other jurisdiction, and which truck or truck tractor would

otherwise be subject to apportioned fleet registration, if such fleet is op-

erated in Kansas by the owner thereof, the operator of such truck or truck

tractor shall be required to carry a Kansas interstate reciprocity permit in

the cab in order to be entitled to operate in interstate commerce on the

highways of this state without being registered in this state. Such Kansas

interstate reciprocity permits shall be issued by the division of vehicles

upon application and payment of a fee of $5. Such permits shall be issued

for a calendar or registration year. The application for such permit shall

be made on a form prescribed and furnished by the director of vehicles.

The permit issued shall be in cab card form, and shall contain such in-

formation as shall be sufficient to identify the vehicle for which it is issued,

and such other information as the director of vehicles shall deem nec-

essary. All moneys received for such permits shall be paid into the state

treasury, and remitted to the state treasurer in accordance with the pro-

visions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each

such remittance, the state treasurer shall deposit the entire amount in the

state treasury shall credit the same to the credit of the state highway fund.

This section shall be supplemental to and part of the motor vehicle reg-

istration act of this state.

The interstate reciprocity permit or the fee or both such fee and permit

may be waived in accordance with any agreement, consent, declaration

or arrangement between this state and any other state, province or coun-

try entered into as provided by K.S.A. 74-4302, and amendments thereto.

Sec. 31. K.S.A. 2000 Supp. 8-241 is hereby amended to read as fol-

lows: 8-241. (a) Except as provided in K.S.A. 8-2,125 through 8-2,142,

and amendments thereto, any person licensed to operate a motor vehicle

in this state shall submit to an examination whenever: (1) The division of

vehicles has good cause to believe that such person is incompetent or

otherwise not qualified to be licensed; or (2) the division of vehicles has

suspended such person's license pursuant to K.S.A. 8-1014, and amend-

ments thereto, as the result of a test refusal, test failure or conviction for

a violation of K.S.A. 8-1567, and amendments thereto, or a violation of

city ordinance or county resolution prohibiting the acts prohibited by

K.S.A. 8-1567, and amendments thereto, except that no person shall have

to submit to and successfully complete an examination more than once

as the result of separate suspensions arising out of the same occurrence.

(b) When a person is required to submit to an examination pursuant

to subsection (a)(1), the fee for such examination shall be in the amount

provided by K.S.A 8-240, and amendments thereto. When a person is

required to submit to an examination pursuant to subsection (a)(2), the

fee for such examination shall be $5. In addition, any person required to

submit to an examination pursuant to subsection (a)(2) shall be required,

at the time of examination, to pay a reinstatement fee of $50. All exami-

nation fees collected pursuant to this section shall be disposed of as pro-

vided in K.S.A. 8-267, and amendments thereto. All reinstatement fees

collected pursuant to this section shall be remitted to the state treasurer,

in accordance with the provisions of K.S.A. 75-4215, and amendments

thereto, who shall deposit the entire amount in the state treasury and

credit 50% to the community alcoholism and intoxication programs fund

created pursuant to K.S.A. 41-1126, and amendments thereto, 20% to

the juvenile detention facilities fund created by K.S.A. 79-4803, and

amendments thereto, 20% to the forensic laboratory and materials fee

fund cited in K.S.A. 28-176, and amendments thereto, and 10% to the

driving under the influence equipment fund created by K.S.A. 75-5660,

and amendments thereto. Moneys credited to the forensic laboratory and

materials fee fund as provided herein shall be used to supplement existing

appropriations and shall not be used to supplant general fund appropri-

ations to the Kansas bureau of investigation.

(c) When an examination is required pursuant to subsection (a), at

least five days' written notice of the examination shall be given to the

licensee. The examination administered hereunder shall be at least equiv-

alent to the examination required by subsection (e) of K.S.A. 8-247, and

amendments thereto, with such additional tests as the division deems

necessary. Upon the conclusion of such examination, the division shall

take action as may be appropriate and may suspend or revoke the license

of such person or permit the licensee to retain such license, or may issue

a license subject to restrictions as permitted under K.S.A. 8-245, and

amendments thereto.

(d) Refusal or neglect of the licensee to submit to an examination as

required by this section shall be grounds for suspension or revocation of

the license.

Sec. 32. K.S.A. 2000 Supp. 8-255 is hereby amended to read as fol-

lows: 8-255. (a) The division is authorized to suspend or revoke a person's

driving privileges upon a showing by its records or other sufficient evi-

dence the person:

(1) Has been convicted with such frequency of serious offenses

against traffic regulations governing the movement of vehicles as to in-

dicate a disrespect for traffic laws and a disregard for the safety of other

persons on the highways;

(2) has been convicted of three or more moving traffic violations com-

mitted on separate occasions within a 12-month period;

(3) is incompetent to drive a motor vehicle;

(4) has been convicted of a moving traffic violation, committed at a

time when the person's driving privileges were suspended or revoked; or

(5) is a member of the armed forces of the United States stationed

at a military installation located in the state of Kansas, and the authorities

of the military establishment certify that such person's on-base driving

privileges have been suspended, by action of the proper military author-

ities, for violating the rules and regulations of the military installation

governing the movement of vehicular traffic or for any other reason re-

lating to the person's inability to exercise ordinary and reasonable control

in the operation of a motor vehicle.

(b) The division shall suspend a person's driving privileges when re-

quired by K.S.A. 8-262 or 8-1014, and amendments thereto, and K.S.A.

2000 Supp. 21-3765, and amendments thereto, and shall disqualify a per-

son's privilege to drive commercial motor vehicles when required by

K.S.A. 8-2,142, and amendments thereto.

(c) When the action by the division suspending, revoking or disqual-

ifying a person's driving privileges is based upon a report of a conviction

or convictions from a convicting court, the person may not request a

hearing but, within 30 days after notice of suspension, revocation or dis-

qualification is mailed, may submit a written request for administrative

review and provide evidence to the division to show the person whose

driving privileges have been suspended, revoked or disqualified by the

division was not convicted of the offense upon which the suspension,

revocation or disqualification is based. Within 30 days of its receipt of the

request for administrative review, the division shall notify the person

whether the suspension, revocation or disqualification has been affirmed

or set aside. The request for administrative review shall not stay any action

taken by the division.

(d) Upon suspending, revoking or disqualifying the driving privileges

of any person as authorized by this act, the division shall immediately

notify the person in writing. Except as provided by K.S.A. 8-1002 and 8-

2,145, and amendments thereto, and subsection (c) of this section, if the

person makes a written request for hearing within 30 days after such

notice of suspension or revocation is mailed, the division shall afford the

person an opportunity for a hearing as early as practical not sooner than

five days nor more than 30 days after such request is mailed. If the division

has not revoked or suspended the person's driving privileges or vehicle

registration prior to the hearing, the hearing may be held within not to

exceed 45 days. Except as provided by K.S.A. 8-1002 and 8-2,145, and

amendments thereto, the hearing shall be held in the person's county of

residence or a county adjacent thereto, unless the division and the person

agree that the hearing may be held in some other county. Upon the

hearing, the director or the director's duly authorized agent may admin-

ister oaths and may issue subpoenas for the attendance of witnesses and

the production of relevant books and papers and may require an exami-

nation or reexamination of the person. When the action proposed or taken

by the division is authorized but not required, the division, upon the

hearing, shall either rescind or affirm its order of suspension or revocation

or, good cause appearing therefor, extend the suspension of the person's

driving privileges, modify the terms of the suspension or revoke the per-

son's driving privileges. When the action proposed or taken by the division

is required, the division, upon the hearing, shall either affirm its order of

suspension, revocation or disqualification, or, good cause appearing there-

for, dismiss the administrative action. If the person fails to request a

hearing within the time prescribed or if, after a hearing, the order of

suspension, revocation or disqualification is upheld, the person shall sur-

render to the division, upon proper demand, any driver's license in the

person's possession.

(e) In case of failure on the part of any person to comply with any

subpoena issued in behalf of the division or the refusal of any witness to

testify to any matters regarding which the witness may be lawfully inter-

rogated, the district court of any county, on application of the division,

may compel obedience by proceedings for contempt, as in the case of

disobedience of the requirements of a subpoena issued from the court or

a refusal to testify in the court. Each witness who appears before the

director or the director's duly authorized agent by order or subpoena,

other than an officer or employee of the state or of a political subdivision

of the state, shall receive for the witness' attendance the fees and mileage

provided for witnesses in civil cases in courts of record, which shall be

audited and paid upon the presentation of proper vouchers sworn to by

the witness.

(f) The division, in the interest of traffic and safety, may establish

driver improvement clinics throughout the state and, upon reviewing the

driving record of a person whose driving privileges are subject to suspen-

sion under subsection (a)(2), may permit the person to retain such per-

son's driving privileges by attending a driver improvement clinic. A person

who is required to attend a driver improvement clinic shall pay a fee of

$15. Amounts received under this subsection shall be remitted at least

monthly to the state treasurer who in accordance with the provisions of

K.S.A. 75-4215, and amendments thereto. Upon receipt of each such re-

mittance, the state treasurer shall deposit the same in the state treasury

and shall be credited to the credit of the division of vehicles operating

fund.

Sec. 33. K.S.A. 8-267 is hereby amended to read as follows: 8-267.

All moneys received under this act shall be paid over remitted by the

secretary of revenue to the state treasurer who in accordance with the

provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of

each such remittance, the state treasurer shall deposit the entire amount

in the state treasury and shall:

(a) Credit 37.5% of all moneys so received from class C driver's li-

censes and 20% of all moneys so received from class M driver's licenses

and 20% of all moneys so received from class A or B driver's licenses and

20% of all moneys so received from all commercial driver licensee classes

remaining after the $2 credit provided in subsection (c) to a special fund,

which is hereby created and shall be known as the ``state safety fund'';

(b) credit 20% of all moneys so received from class M driver's licenses

to a special fund which is hereby created and shall be known as the

``motorcycle safety fund''; and

(c) credit $2 from each commercial driver's license fee to a special

fund which is hereby created and shall be known as the ``truck driver

training fund.''

Moneys in the state safety fund and in the motorcycle safety fund shall

be distributed to provide funds for driver training courses in the schools

in Kansas and for the administration of this act, as the legislature shall

provide. In addition, moneys in the motorcycle safety fund shall be dis-

tributed to provide funds for courses in motorcycle safety in community

colleges in Kansas. Moneys in the truck driver training fund shall be

distributed to provide funds for courses in truck driver training in com-

munity colleges, area vocational schools and area vocational-technical

schools in Kansas. Except as otherwise provided by K.S.A. 8-241, and

amendments thereto, the state treasurer shall credit the balance of all

moneys received under this act, including all moneys received from com-

mercial driver's license endorsements to the state highway fund.

Sec. 34. K.S.A. 8-280 is hereby amended to read as follows: 8-280.

All moneys received under this act shall be deposited with remitted to

the state treasurer and credited in accordance with the provisions of

K.S.A. 75-4215, and amendments thereto. Upon receipt of each such re-

mittance, the state treasurer shall deposit the entire amount in the state

treasury to the credit of the state safety fund created by K.S.A. 8-267,

and amendments thereto.

Sec. 35. K.S.A. 2000 Supp. 8-1008 is hereby amended to read as

follows: 8-1008. (a) Community-based alcohol and drug safety action pro-

grams certified in accordance with subsection (b) shall provide:

(1) Presentence alcohol and drug evaluations of any person who is

convicted of a violation of K.S.A. 8-1567, and amendments thereto, or

the ordinance of a city in this state which prohibits the acts prohibited by

that statute;

(2) supervision and monitoring of all persons who are convicted of a

violation of K.S.A. 8-1567, and amendments thereto, or the ordinance of

a city in this state which prohibits the acts prohibited by that statute, and

whose sentences or terms of probation require completion of an alcohol

and drug safety action program, as provided in this section, or an alcohol

and drug abuse treatment program, as provided in this section;

(3) alcohol and drug evaluations of persons whom the prosecutor con-

siders for eligibility or finds eligible to enter a diversion agreement in lieu

of further criminal proceedings on a complaint alleging a violation of

K.S.A. 8-1567, and amendments thereto, or the ordinance of a city in this

state which prohibits the acts prohibited by that statute;

(4) supervision and monitoring of persons required, under a diversion

agreement in lieu of further criminal proceedings on a complaint alleging

a violation of K.S.A. 8-1567, and amendments thereto, or the ordinance

of a city in this state which prohibits the acts prohibited by that statute,

to complete an alcohol and drug safety action program, as provided in

this section, or an alcohol and drug abuse treatment program, as provided

in this section; or

(5) any combination of (1), (2), (3) and (4).

(b) The presentence alcohol and drug evaluation shall be conducted

by a community-based alcohol and drug safety action program certified

in accordance with the provisions of this subsection to provide evaluation

and supervision services as described in subsections (c) and (d). A com-

munity-based alcohol and drug safety action program shall be certified

either by the chief judge of the judicial district to be served by the pro-

gram or by the secretary of social and rehabilitation services for judicial

districts in which the chief judge declines to certify a program. In addition

to any qualifications established by the secretary, the chief judge may

establish qualifications for the certification of programs, which qualifi-

cations may include requirements for training, education and certification

of personnel; supervision and monitoring of clients; fee reimbursement

procedures; handling of conflicts of interest; delivery of services to clients

unable to pay; and other matters relating to quality and delivery of services

by the program. In establishing the qualifications for programs, the chief

judge or the secretary shall give preference to those programs which have

had practical experience prior to July 1, 1982, in diagnosis and referral in

alcohol and drug abuse. Certification of a program by the chief judge

shall be done with consultation and approval of a majority of the judges

of the district court of the district and municipal judges of cities lying in

whole or in part within the district. If within 60 days after the effective

date of this act the chief judge declines to certify any program for the

judicial district, the judge shall notify the secretary of social and rehabil-

itation services, and the secretary of social and rehabilitation services shall

certify a community-based alcohol and drug safety action program for

that judicial district. The certification shall be for a four-year period. Re-

certification of a program or certification of a different program shall be

by the chief judge, with consultation and approval of a majority of the

judges of the district court of the district and municipal judges of cities

lying in whole or in part within the district. If upon expiration of certifi-

cation of a program there will be no certified program for the district and

the chief judge declines to recertify or certify any program in the district,

the judge shall notify the secretary of social and rehabilitation services, at

least six months prior to the expiration of certification, that the judge

declines to recertify or certify a program under this subsection. Upon

receipt of the notice and prior to the expiration of certification, the sec-

retary shall recertify or certify a community-based alcohol and drug safety

action program for the judicial district for the next four-year period. To

be eligible for certification under this subsection, the chief judge or the

secretary of social and rehabilitation services shall determine that a com-

munity-based alcohol and drug safety action program meets the qualifi-

cations established by the judge or secretary and is capable of providing,

within the judicial district: (1) The evaluations, supervision and monitor-

ing required under subsection (a); (2) the alcohol and drug evaluation

report required under subsection (c) or (d); (3) the follow-up duties spec-

ified under subsection (c) or (d) for persons who prepare the alcohol and

drug evaluation report; and (4) any other functions and duties specified

by law. Community-based alcohol and drug safety action programs per-

forming services in any judicial district under this section prior to the

effective date of this act may continue to perform those services until a

community-based alcohol and drug safety action program is certified for

that judicial district.

(c) A presentence alcohol and drug evaluation shall be conducted on

any person who is convicted of a violation of K.S.A. 8-1567, and amend-

ments thereto, or the ordinance of a city in this state which prohibits the

acts prohibited by that statute. The presentence alcohol and drug evalu-

ation report shall be made available to and shall be considered by the

court prior to sentencing. The presentence alcohol and drug evaluation

report shall contain a history of the defendant's prior traffic record, char-

acteristics and alcohol or drug problems, or both, and a recommendation

concerning the amenability of the defendant to education and rehabili-

tation. The presentence alcohol and drug evaluation report shall include

a recommendation concerning the alcohol and drug driving safety edu-

cation and treatment for the defendant. The presentence alcohol and

drug evaluation report shall be prepared by a program which has dem-

onstrated practical experience in the diagnosis of alcohol and drug abuse.

The duties of persons who prepare the presentence alcohol and drug

evaluation report may also include appearing at sentencing and probation

hearings in accordance with the orders of the court, monitoring defen-

dants in the treatment programs, notifying the probation department and

the court of any defendant failing to meet the conditions of probation or

referrals to treatment, appearing at revocation hearings as may be re-

quired and providing assistance and data reporting and program evalua-

tion. The cost of any alcohol and drug education, rehabilitation and treat-

ment programs for any person shall be paid by such person, and such

costs shall include, but not be limited to, the assessments required by

subsection (e). If financial obligations are not met or cannot be met, the

sentencing court shall be notified for the purpose of collection or review

and further action on the defendant's sentence.

(d) An alcohol and drug evaluation shall be conducted on any person

whom the prosecutor considers for eligibility or finds eligible to enter a

diversion agreement in lieu of further criminal proceedings on a com-

plaint alleging a violation of K.S.A. 8-1567, and amendments thereto, or

the ordinance of a city in this state which prohibits the acts prohibited by

that statute. The alcohol and drug evaluation report shall be made avail-

able to the prosecuting attorney and shall be considered by the prose-

cuting attorney. The alcohol and drug evaluation report shall contain a

history of the person's prior traffic record, characteristics and alcohol or

drug problems, or both, and a recommendation concerning the amena-

bility of the person to education and rehabilitation. The alcohol and drug

evaluation report shall include a recommendation concerning the alcohol

and drug driving safety education and treatment for the person. The al-

cohol and drug evaluation report shall be prepared by a program which

has demonstrated practical experience in the diagnosis of alcohol and

drug abuse. The duties of persons who prepare the alcohol and drug

evaluation report may also include monitoring persons in the treatment

programs, notifying the prosecutor and the court of any person failing to

meet the conditions of diversion or referrals to treatment, and providing

assistance and data reporting and program evaluation. The cost of any

alcohol and drug education, rehabilitation and treatment programs for

any person shall be paid by such person, and such costs shall include, but

not be limited to, the assessments required by subsection (e).

(e) In addition to any fines, fees, penalties or costs levied against a

person who is convicted of a violation of K.S.A. 8-1567, and amendments

thereto, or the ordinance of a city in this state which prohibits the acts

prohibited by that statute, or who enters a diversion agreement in lieu of

further criminal proceedings on a complaint alleging a violation of that

statute or such an ordinance, $125 shall be assessed against the person

by the sentencing court or under the diversion agreement. The $125

assessment may be waived by the court or, in the case of diversion of

criminal proceedings, by the prosecuting attorney, if the court or prose-

cuting attorney finds that the defendant is an indigent person. Except as

otherwise provided in this subsection, the clerk of the court shall deposit

all assessments received under this section in the alcohol and drug safety

action fund of the court, which fund shall be subject to the administration

of the judge having administrative authority over that court. If the sec-

retary of social and rehabilitation services certifies the community-based

alcohol and drug safety action program for the judicial district in which

the court is located, the clerk of the court shall remit, during the four-

year period for which the program is certified, 15% of all assessments

received under this section to the secretary of social and rehabilitation

services. Moneys credited to the alcohol and drug safety action fund shall

be expended by the court, pursuant to vouchers signed by the judge

having administrative authority over that court, only for costs of the serv-

ices specified by subsection (a) or otherwise required or authorized by

law and provided by community-based alcohol and drug safety action

programs, except that not more than 10% of the money credited to the

fund may be expended to cover the expenses of the court involved in

administering the provisions of this section. In the provision of these

services the court shall contract as may be necessary to carry out the

provisions of this section. The district or municipal judge having admin-

istrative authority over that court shall compile a report and send such

report to the office of the state judicial administrator on or before January

20 of each year, beginning January 20, 1991. Such report shall include,

but not be limited to:

(1) The balance of the alcohol and drug safety action fund of the court

on December 31 of each year;

(2) the assessments deposited into the fund during the 12-month pe-

riod ending the preceding December 31; and

(3) the dollar amounts expended from the fund during the 12-month

period ending the preceding December 31.

The office of the state judicial administrator shall compile such reports

into a statewide report and submit such statewide report to the legislature

on or before March 1 of each year.

(f) The secretary of social and rehabilitation services shall remit all

moneys received by the secretary under this section to the state treasurer

at least monthly in accordance with the provisions of K.S.A. 75-4215, and

amendments thereto. Upon receipt of the each such remittance, the state

treasurer shall deposit the entire amount in the state treasury and credit

it to the credit of the certification of community-based alcohol and drug

safety action programs fee fund, which is hereby created. All expenditures

from such fund shall be made in accordance with appropriation acts upon

warrants issued pursuant to vouchers approved by the secretary of social

and rehabilitation services or a person designated by the secretary.

Sec. 36. K.S.A. 8-1333 is hereby amended to read as follows: 8-1333.

All moneys received pursuant to K.S.A. 8-1324 to 8-1332, inclusive, and

amendments thereto, shall be paid over remitted by the director of the

division of vehicles to the state treasurer who shall credit all moneys

received under this act in accordance with the provisions of K.S.A. 75-

4215, and amendments thereto. Upon receipt of each such remittance, the

state treasurer shall deposit the entire amount in the state treasury to the

credit of the state highway fund.

Sec. 37. K.S.A. 2000 Supp. 8-1911 is hereby amended to read as

follows: 8-1911. (a) The secretary of transportation with respect to high-

ways under the secretary's jurisdiction and local authorities with respect

to highways under their jurisdiction, in their discretion, upon application,

may issue a special permit, which term shall include an authorization

number, to the owner or operator of an oversize or overweight vehicle.

The special permit shall authorize the special permit holder to operate

or move a vehicle or combination of vehicles which exceed the limitations

of this act, on a route, or routes, designated in the special permit and in

accordance with the terms and conditions of the special permit.

(b) The application for the permit shall describe the vehicle, or com-

bination of vehicles and all loads or cargo for which the special permit is

requested, the route or routes on which operation is sought and whether

a single trip or annual operation is requested. One special permit may be

issued for a vehicle or combination of vehicles, that are both oversize and

overweight. A special permit under this section may be for a single trip

or for annual operation. The special permit shall designate the route or

routes that may be used and any other terms, conditions or restrictions

deemed necessary. The secretary of transportation shall charge a fee for

each permit or authorization number issued as provided for in subsection

(f). No permit shall be required to authorize the moving or operating

upon any highway of farm tractors, combines, fertilizer dispensing equip-

ment or other farm machinery, or machinery being transported to be used

for terracing or soil or water conservation work upon farms, or vehicles

owned by counties, cities and other political subdivisions of the state,

except that this sentence shall not: (1) Exempt trucks owned by counties,

cities and other political subdivisions specifically designed and equipped

and used exclusively for garbage, refuse or solid waste disposal operations

from the maximum gross weight limitations contained in the table in

K.S.A. 8-1909, and amendments thereto; or (2) authorize travel on inter-

state highways.

(c) A permit shall be valid only when the registration on the power

unit is equal to or exceeds the total gross weight of the vehicle. When the

gross weight of the vehicle exceeds the upper limit of the available reg-

istration, the maximum amount of registration must be purchased.

(d) The secretary or local authority may issue or withhold the permit

at the secretary's or local authority's discretion or may limit the number

of trips, or establish seasonal or other time limitations within which the

vehicles described may be operated on the highways, or may otherwise

limit or prescribe conditions of operations of such vehicle or combination

of vehicles, when necessary to assure against undue damage to the road.

The secretary or local authority may require such undertaking or other

security as may be deemed necessary to compensate for any injury to any

roadway or road structure.

(e) Every permit shall be carried in the vehicle or combination of

vehicles to which it refers and shall be open to inspection by any police

officer or authorized agent of any authority granting the permit. It shall

be unlawful for any person to violate any of the terms or conditions of

special permit.

(f) The secretary of transportation shall charge and collect fees as

follows:

(1) Five dollars for each single-trip permit;

(2) twenty-five dollars for a five-year permit for vehicles authorized

to move bales of hay under subsection (j) on noninterstate highways;

(3) one hundred and twenty-five dollars for each annual permit; or

(4) two thousand dollars per year for each qualified carrier company

for special vehicle combination permits authorized under K.S.A. 8-1915,

and amendments thereto, plus $50 per year for each power unit operating

under such annual permit.

No fees shall be charged for permits issued for vehicles owned by

counties, cities and other political subdivisions of the state. All permit

fees received under this section shall be remitted to the state treasurer

who in accordance with the provisions of K.S.A. 75-4215, and amend-

ments thereto. Upon receipt of each such remittance, the state treasurer

shall deposit the same entire amount in the state treasury and shall be

credited to the credit of the state highway fund. The secretary may adopt

rules and regulations for payment and collection of all fees. The secretary

may adopt rules and regulations implementing the provisions of this sec-

tion to prescribe standards for any permit program to enhance highway

safety.

(g) If any local authority does not desire to exercise the powers con-

ferred on it by this section to issue or deny permits then such a permit

from the local authority shall not be required to operate any such vehicle

or combination of vehicles on highways under the jurisdiction of such

local authority, but in no event shall the jurisdiction of the local authority

be construed as extending to any portion of any state highway, any city

street designated by the secretary as a connecting link in the state highway

system or any highway within the national system of interstate and de-

fense highways, which highways and streets, for the purpose of this sec-

tion, shall be under the jurisdiction of the secretary.

(h) A house trailer, manufactured home or mobile home which ex-

ceeds the width as provided in subsection (a) of K.S.A. 8-1902, and

amendments thereto, may be moved on the highways of this state by

obtaining a permit as provided in this section, if:

(1) The width of such house trailer, manufactured home or mobile

home does not exceed 16 1/2 feet;

(2) the driver of the vehicle pulling the house trailer, manufactured

home or mobile home has a valid driver's license; and

(3) the driver carries evidence that the housetrailer, manufactured

home or mobile home, and the vehicle pulling it, are covered by motor

vehicle liability insurance with limits of not less than $100,000 for injury

to any one person, and $300,000 for injury to persons in any one accident,

and $25,000 for injury to property.

For the purposes of this subsection, the terms ``manufactured home''

and ``mobile home'' shall have the meanings ascribed to them by K.S.A.

58-4202, and amendments thereto.

(i) Upon proper application stating the description and registration

of each power unit, the secretary of transportation shall issue permits for

a period, from May 1 to November 15, for custom combine operators to

tow custom-combine equipment on a trailer within legal dimensions or a

trailer especially designed for the transportation of combines or combine

equipment at the rate of $10 per power unit. Each application shall be

accompanied by information as required by the secretary. The permit

shall allow custom combine operators to haul two combine headers on

designated interstate highways provided:

(1) The vehicle plus the load do not exceed 14 feet in width;

(2) the move is completed during the period beginning 30 minutes

before sunrise and ending 30 minutes after sunset; and

(3) the vehicle plus the load are not overweight.

(j) Except as provided in paragraph (2) of subsection (d) of K.S.A. 8-

1902, and amendments thereto, a vehicle loaded with bales of hay which

exceeds the width as provided in subsection (a) of K.S.A. 8-1902, and

amendments thereto, may be moved on any highway designated as a part

of the national network of highways by obtaining a permit as provided by

this section, if:

(A) The vehicle plus the bales of hay do not exceed 12 feet in width;

(B) the vehicle plus the bales of hay do not exceed the height au-

thorized under K.S.A. 8-1904, and amendments thereto;

(C) the move is completed during the period beginning 30 minutes

before sunrise and ending 30 minutes after sunset;

(D) the vehicle plus the load are not overweight; and

(E) the vehicle plus the load comply with the signing and marking

requirements of paragraph (3) of subsection (d) of K.S.A. 8-1902, and

amendments thereto.

(k) If it is determined by the secretary of transportation that a person

has been granted a permit and has not complied with the applicable pro-

visions of this section and the rules and regulations of the secretary of

transportation relating thereto, the secretary may cancel the permit and

may refuse to grant future permits to the individual.

Sec. 38. K.S.A. 2000 Supp. 8-2110 is hereby amended to read as

follows: 8-2110. (a) Failure to comply with a traffic citation means failure

either to (1) appear before any district or municipal court in response to

a traffic citation and pay in full any fine and court costs imposed or (2)

otherwise comply with a traffic citation as provided in K.S.A. 8-2118, and

amendments thereto. Failure to comply with a traffic citation is a mis-

demeanor, regardless of the disposition of the charge for which such

citation was originally issued.

(b) In addition to penalties of law applicable under subsection (a),

when a person fails to comply with a traffic citation, except for illegal

parking, standing or stopping, the district or municipal court in which the

person should have complied with the citation shall mail notice to the

person that if the person does not appear in district or municipal court

or pay all fines, court costs and any penalties within 30 days from the date

of mailing, the division of vehicles will be notified to suspend the person's

driving privileges. Upon the person's failure to comply within such 30

days, the district or municipal court shall notify the division of vehicles.

Upon receipt of a report of a failure to comply with a traffic citation under

this subsection, pursuant to K.S.A. 8-255, and amendments thereto, the

division of vehicles shall notify the violator and suspend the license of the

violator until satisfactory evidence of compliance with the terms of the

traffic citation has been furnished the informing court. Upon such com-

pliance the informing court shall notify the division of vehicles and the

suspension or suspension action shall be terminated.

(c) Except as provided in subsection (d), when the district or munic-

ipal court notifies the division of vehicles of a failure to comply with a

traffic citation pursuant to subsection (b), the court shall assess a rein-

statement fee of $50 for each charge on which the person failed to make

satisfaction regardless of the disposition of the charge for which such

citation was originally issued. Such reinstatement fee shall be in addition

to any fine, district or municipal court costs and other penalties. The court

shall, at least monthly, remit all reinstatement fees to the state treasurer

who in accordance with the provisions of K.S.A. 75-4215, and amend-

ments thereto. Upon receipt of each such remittance, the state treasurer

shall deposit the entire amount in the state treasury and shall credit 50%

of such moneys to the division of vehicles operating fund, 37.5% to the

community alcoholism and intoxication programs fund created by K.S.A.

41-1126, and amendments thereto, and 12.5% to the juvenile detention

facilities fund created by K.S.A. 79-4803, and amendments thereto.

(d) The district court or municipal court shall waive the reinstatement

fee provided for in subsection (c), if the failure to comply with a traffic

citation was the result of such person enlisting in or being drafted into

the armed services of the United States, being called into service as a

member of a reserve component of the military service of the United

States, or volunteering for such active duty, or being called into service

as a member of the state of Kansas national guard, or volunteering for

such active duty, and being absent from Kansas because of such military

service. In any case of a failure to comply with a traffic citation which

occurred on or after August 1, 1990, and prior to the effective date of

this act, in which a person was assessed and paid a reinstatement fee and

the person failed to comply with a traffic citation because the person was

absent from Kansas because of any such military service, the reinstate-

ment fee shall be reimbursed to such person upon application therefor.

The state treasurer and the director of accounts and reports shall pre-

scribe procedures for all such reimbursement payments and shall create

appropriate accounts, make appropriate accounting entries and issue such

appropriate vouchers and warrants as may be required to make such re-

imbursement payments.

Sec. 39. K.S.A. 8-2418 is hereby amended to read as follows: 8-2418.

The director shall remit all moneys received by or for the director from

fees, charges or penalties under the provisions of this act to the state

treasurer at least monthly in accordance with the provisions of K.S.A. 75-

4215, and amendments thereto. Upon receipt of each such remittance,

the state treasurer shall deposit the entire amount thereof in the state

treasury to the credit of the state highway fund.

Sec. 40. K.S.A. 8-2425 is hereby amended to read as follows: 8-2425.

(a) When a first dealer license plate has been issued under K.S.A. 8-2406,

and amendments thereto, the secretary of revenue may issue full-privilege

license plates to a licensed manufacturer of or licensed dealer in vehicles.

In no calendar year shall the secretary issue in excess of 10 such license

plates to any licensed manufacturer or dealer.

(b) The annual fee for each full-privilege license plate shall be $350.

(c) The secretary shall, upon application provided by the secretary

and payment of the fee required in subsection (b), issue to the applicant

appropriate passenger car or truck license plates. Each license plate so

issued shall be a full-privilege license plate which shall expire on the

January 31 next following its issuance.

(d) Subject to subsection (e), a full-privilege license plate may be used

in lieu of regular vehicle registration and license plate. A full-privilege

license plate may be transferred from one vehicle to another owned or

in inventory of such manufacturer or dealer and may be assigned for use

by any person, at the discretion of the manufacturer or dealer to whom

it is issued. The person to whom a full-privilege license plate is assigned

for use shall be only a person who is: (1) A member of the immediate

family of the licensed manufacturer of or licensed dealer in vehicles; (2)

a corporate officer of the licensed manufacturer of or licensed dealer in

vehicles; or (3) an employee of the licensed manufacturer of or licensed

dealer in vehicles.

(e) A full-privilege license plate shall not be used on a lease or rental

vehicle. A full-privilege license plate shall not permit any vehicle to be

operated or moved upon a highway to haul commodities weighing in

excess of two tons. A full-privilege license plate shall not be used on a

wrecker or tow truck when providing wrecker or towing service as defined

by K.S.A. 66-1329, and amendments thereto.

(f) Fees received under this section shall be divided equally between

the county treasurer in which the licensed manufacturer or dealer has its

established place of business and the secretary of revenue. Amounts al-

lotted to the secretary of revenue shall be deposited remitted to the state

treasurer in accordance with the provisions of K.S.A. 75-4215, and

amendments thereto. Upon receipt of each such remittance, the state trea-

surer shall deposit the entire amount in the state treasury and credited to

the credit of the vehicle dealers and manufacturers fee fund which fund

is hereby created in the state treasury. Expenditures from the vehicle

dealers and manufacturers fee fund shall be made on vouchers approved

by the secretary of revenue, or a person designated by the secretary, for

enforcement of the vehicle dealers and manufacturers licensing act in

accordance with appropriations therefor. Amounts allotted to the county

treasurers shall be credited to the county treasurers' vehicle licensing fee

fund which fund is hereby created in the state treasury. Amounts due

each county treasurer shall be paid quarterly from such fund upon vouch-

ers approved by the secretary of revenue or a person designated by the

secretary. Amounts received by each county treasurer shall be deposited,

appropriated and used as provided by K.S.A. 8-145, and amendments

thereto.

(g) The provisions of K.S.A. 8-136 and 8-2406, and amendments

thereto, shall not apply to full-privilege license plates or the use thereof.

(h) This section shall take effect and be in force from and after Jan-

uary 1, 1986.

Sec. 41. K.S.A. 2000 Supp. 9-1111b is hereby amended to read as

follows: 9-1111b. A bank making application to the state banking board

for approval of a branch bank shall pay to the state bank commissioner a

fee, in an amount established by rules and regulations adopted by the

commissioner, to defray the expenses of the board, commissioner or other

designees in the examination and investigation of the application. The

commissioner shall remit all amounts received under this section to the

state treasurer who shall deposit the same in accordance with the pro-

visions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each

such remittance, the state treasurer shall deposit the entire amount in the

state treasury to the credit of a separate special account in the state treas-

ury for each application. The moneys in each such account shall be used

only to pay the expenses of the board, commissioner or other designees

in the examination and investigation of the application to which it relates

and any unused balance shall be transferred to the bank commissioner

fee fund.

Sec. 42. K.S.A. 2000 Supp. 9-1135 is hereby amended to read as

follows: 9-1135. (a) Notwithstanding the requirements contained in

K.S.A. 9-1111, and amendments thereto, a bank incorporated under the

laws of this state may establish or operate a trust branch bank anywhere

in this state.

(b) As used in this section, the term ``trust branch bank'' means any

office, agency or other place of business located within this state, other

than the place of business specified in the bank's certificate of authority,

the sole purpose of which is to exercise those trust powers granted to the

bank by the commissioner pursuant to K.S.A. 9-1602, and amendments

thereto. No trust branch bank established or operated pursuant to this

section shall be authorized to receive deposits, pay checks or lend money

without first applying for and obtaining approval as provided in K.S.A. 9-

1111, and amendments thereto.

(c) No bank shall establish or operate a trust branch bank or relocate

an existing trust branch bank until the bank has applied for and obtained

approval from the commissioner as provided by this section.

(d) An application to establish a trust branch bank as provided in this

section shall be in such form and contain such information as is required

by the commissioner and shall include certified copies of the following

documents:

(1) The written action taken by the board of directors of the bank

approving the proposed trust branch bank or the relocation of an existing

trust branch bank;

(2) all other required regulatory approvals; and

(3) an affidavit of publication of notice of intent to file an application

to establish or operate a trust branch bank or relocate an existing trust

branch bank. The publication of the notice shall be on the same day for

two consecutive weeks in the official newspaper of the city or county

where the proposed trust branch bank is to be located. The notice shall

be in the form prescribed by the commissioner and shall contain the name

of the applicant, the location of the proposed trust branch bank, the pro-

posed date of filing of the application with the commissioner, a solicitation

for written comments concerning the application and a notice of the pub-

lic's right to file a written request for a public hearing for the purpose of

presenting oral or written evidence regarding the proposed trust branch

bank. All comments and requests for public hearing shall be filed with

the commissioner on or before the 30th day after the date the application

is filed.

(e) A bank making application to the commissioner for approval of a

trust branch bank pursuant to this section shall pay to the commissioner

a fee, in an amount established by rules and regulations of the commis-

sioner, adopted pursuant to K.S.A. 9-1713, and amendments thereto, to

defray the expenses of the commissioner or designee in the examination

and investigation of the application. The commissioner shall remit all

amounts received under this section to the state treasurer who shall de-

posit the same in accordance with the provisions of K.S.A. 75-4215, and

amendments thereto. Upon receipt of each such remittance, the state trea-

surer shall deposit the entire amount in the state treasury to the credit of

a separate account in the state treasury for each application. The moneys

in each such account shall be used to pay the expenses of the commis-

sioner or designee in the examination and investigation of the application

to which it relates and any unused balance shall be transferred to the

bank commissioner fee fund.

(f) Upon the filing of any such application with the commissioner,

the commissioner shall make or cause to be made, a careful examination

and investigation concerning:

(1) The reasonable probability of usefulness and success of the pro-

posed trust branch bank;

(2) the applicant bank's financial history and condition including the

character, qualifications and experience of the officers employed by the

bank; and

(3) whether the proposed trust branch bank can be established with-

out undue injury to properly conducted existing banks, national banking

associations and trust companies.

If the commissioner determines any of such matters unfavorably to the

applicants, the application shall be disapproved, but if not, the application

shall be approved.

(g) If no written request for public hearing is filed, the commissioner

shall render approval or disapproval of the application within 60 days after

the date upon which the application was filed.

(h) If a written request for public hearing is filed, the commissioner

shall hold a public hearing in a location determined by the commissioner

within 30 days of the close of the comment period. Notice of the time,

date and place of such hearing shall be published, by the applicant, in a

newspaper of general circulation in the county where the proposed trust

branch bank is to be located, not less than 10 or more than 30 days prior

to the date of the hearing, and an affidavit of publication shall be filed

with the commissioner. At any such hearing, all interested persons shall

be allowed to present written and oral evidence to the commissioner in

support of or in opposition to the application. Upon completion of a tran-

script of the testimony given at such hearing, the transcript shall be filed

in the office of the commissioner. Within 14 days after the public hearing,

the commissioner shall approve or disapprove the application after con-

sideration of the application and evidence gathered during the commis-

sioner's investigation.

(i) The commissioner may extend the period for approval or disap-

proval if the commissioner determines that any information required by

this section has not been furnished, any material information submitted

is inaccurate or additional investigation is required. The commissioner,

prior to expiration of the application period provided in this section, shall

give written notice to the applicant of the commissioner's intent to extend

the period. Such notice shall include a specific date for expiration of the

extension period. If any information remains incomplete or inaccurate

upon the expiration of the extension period the application shall be dis-

approved.

(j) Within 15 days after the date of the commissioner's approval or

disapproval of the application, the applicant or any individual or corpo-

ration who filed a request for and presented evidence at the public hear-

ing shall have the right to appeal in writing to the state banking board

the commissioner's determination by filing a notice of appeal with the

commissioner. The board shall fix a date for a hearing, which hearing

shall be held within 45 days from the date the notice of appeal is filed.

The board shall conduct the hearing in accordance with the provisions of

the Kansas administrative procedure act and render its decision affirming

or rescinding the determination of the commissioner. Any action of the

board pursuant to this section is subject to review in accordance with the

act for judicial review and civil enforcement of agency actions. Any party

which files an appeal of the commissioner's determination to the board

shall pay to the commissioner a fee in an amount established by rules and

regulations of the commissioner, adopted pursuant to K.S.A. 9-1713, and

amendments thereto, to defray the board's expenses associated with the

conduct of the appeal.

(k) When the commissioner determines that any bank domiciled in

this state has established or is operating a trust branch bank in violation

of the laws governing the operation of such bank, the commissioner shall

give written notice to the bank of such determination. Within 15 days

after receipt of such notification, the bank shall have the right to appeal

in writing to the board the commissioner's determination. The board shall

fix a date for hearing, which hearing shall be held within 45 days after

the date of such appeal and shall be conducted in accordance with the

provisions of the Kansas administrative procedure act. At such hearing

the board shall hear all matters relevant to the commissioner's determi-

nation and shall approve or disapprove the commissioner's determination,

and the decision of the board shall be final and conclusive. If the bank

does not appeal to the board from the commissioner's determination or

if an appeal is made and the commissioner's determination is upheld by

the board, the commissioner may proceed as provided in K.S.A. 9-1714,

and amendments thereto, until such time as the commissioner determines

the bank is in full compliance with the laws governing the operation of a

trust branch bank.

Sec. 43. K.S.A. 2000 Supp. 9-1703 is hereby amended to read as

follows: 9-1703. (a) The expense of every regular examination, together

with the expense of administering the banking and savings and loan laws,

including salaries, travel expenses, supplies and equipment, shall be paid

by the banks and savings and loan associations of the state, and for this

purpose the bank commissioner shall, prior to the beginning of each fiscal

year, make an estimate of the expenses to be incurred by the department

during such fiscal year. From this total amount the commissioner shall

deduct the estimated amount of the anticipated annual income to the

fund from all sources other than bank and savings and loan association

assessments. The commissioner shall allocate and assess the remainder

to the banks and savings and loan associations in the state on the basis of

their total assets, as reflected in the last March 31 report called for by

the federal deposit insurance corporation under the provisions of section

7 of the federal deposit insurance act, 12 USC 1817, and amendments

thereto, or K.S.A. 17-5610, and amendments thereto, except that the

annual assessment will not be less than $1,000 for any bank or savings

and loan association.

(b) The expense of every regular trust examination, together with the

expense of administering trust laws, including salaries, travel expenses,

supplies and equipment, shall be paid by the trust companies and trust

departments of banks of this state, and for this purpose, the bank com-

missioner, prior to the beginning of each fiscal year, shall make an esti-

mate of the trust expenses to be incurred by the department during such

fiscal year. The commissioner shall allocate and assess the trust depart-

ments and trust companies in the state on the basis of their total fiduciary

assets, as reflected in the last December 31 report filed with the com-

missioner pursuant to K.S.A. 9-1704, and amendments thereto, except

that the annual assessment will not be less than $1,000 for any active trust

department or trust company. A trust department or a trust company

which has no fiduciary assets, as reflected in the last preceding year-end

report filed with the commissioner, may be granted inactive status by the

commissioner and the annual assessment shall not be more than $100 for

an inactive trust department or trust company. No inactive trust depart-

ment or trust company shall accept any fiduciary assets or exercise any

part of or all of its trust authority until such time as it has applied for and

received prior written approval of the commissioner to reactivate its trust

authority.

(c) A statement of each assessment made under the provisions of

subsection (a) or (b) shall be sent by the commissioner to each bank,

savings and loan association, trust department and trust company on July

1 or the next business day thereafter. If a bank, savings and loan associ-

ation or trust company exists as a corporate entity with the secretary of

state's office as of the close of business on June 30, and is authorized by

the office of the state bank commissioner to conduct banking, savings and

loan or trust business, one-half of the amount so assessed shall be due

and payable on or before July 15. If a bank savings and loan association

or trust company exists as a corporate entity with the secretary of state's

office as of close of business on December 31, and is authorized to con-

duct banking, savings and loan or trust business, the remaining one-half

of the amount assessed shall be due and payable on or before January 15.

Any expenses incurred or services performed on account of any bank,

trust department or trust company or other corporation which are outside

of the normal expense of an examination required under the provisions

of K.S.A. 9-1701, and amendments thereto, or K.S.A. 17-5612, and

amendments thereto, shall be charged to and paid by the corporation for

whom they were incurred or performed. The commissioner may impose

a penalty upon any bank, savings and loan association, trust department

or trust company which fails to pay its annual assessment. The penalty

shall be assessed in the amount of $50 for each day the assessment is not

paid. The counting period for such penalty will begin February 1 or Au-

gust 1.

The bank commissioner shall remit all moneys received by or for such

commissioner from such examination fees to the state treasurer at least

monthly in accordance with the provisions of K.S.A. 75-4215, and amend-

ments thereto. Upon receipt of each such remittance, the state treasurer

shall deposit the entire amount in the state treasury. Twenty percent of

each deposit shall be credited to the state general fund and the balance

shall be credited to the bank commissioner fee fund. All expenditures

from the bank commissioner fee 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 bank commissioner or by a

person or persons designated by the commissioner.

(d) As used in this section, ``savings and loan association'' means a

Kansas state-chartered savings and loan association.

(e) (1) In the event a bank, savings and loan association or trust com-

pany is merged into, consolidated with, or the assets and liabilities of

which are purchased and assumed by another bank, savings and loan

association or trust company, between the preceding March 31 and June

30, for banks and savings and loan associations, or the preceding Decem-

ber 31 and June 30, for trust companies, the surviving or acquiring bank,

savings and loan association or trust company is obligated to pay the as-

sessment of the institution being merged, consolidated or assumed for

the fiscal year commencing July 1.

(2) In the event a bank, savings and loan association, or trust company

is merged into, consolidated with, or the assets and liabilities of which

are purchased and assumed by another bank, savings and loan association

or trust company between July 1 and December 31, the surviving entity

shall be obligated to pay the unpaid portion of the assessment for the

fiscal year commencing July 1 which would have been due on or before

January 15 of the institution being merged, consolidated or assumed.

Sec. 44. K.S.A. 2000 Supp. 9-1803 is hereby amended to read as

follows: 9-1803. All expenses incurred in making any examination and

investigation under K.S.A. 9-1802, and amendments thereto, shall be paid

by the applicants, who shall pay to the commissioner a fee in an amount

established by rules and regulations adopted by the commissioner to de-

fray all such expenses. The commissioner shall remit all amounts received

under this section to the state treasurer who shall deposit the same in

accordance with the provisions of K.S.A. 75-4215, and amendments

thereto. Upon receipt of each such remittance, the state treasurer shall

deposit the entire amount in the state treasury to the credit of a separate

special account in the state treasury for each application. The moneys in

each such account shall be used only to pay the expenses of the exami-

nation and investigation to which it relates and any unused balance shall

be transferred to the bank commissioner fee fund. Any members of the

board who make such an examination or investigation shall be paid the

sum of $35 per diem for the time they actually are engaged in performing

their duties as members of such board, and in addition thereto, shall be

paid all their actual and necessary expenses incurred in the performance

of such duties from such funds.

Sec. 45. K.S.A. 2000 Supp. 9-1804 is hereby amended to read as

follows: 9-1804. No bank or trust company incorporated under the laws

of this state shall change its place of business, from one city or town to

another or from one location to another within the same city or town,

without the prior approval of the state banking board. Any such bank or

trust company desiring to change its place of business shall file written

application with the board in such form and containing such information

as the board shall require. The board shall examine and investigate the

application, and shall inquire into the public necessity for such bank or

trust company in the community wherein it is proposed to locate the

same, and shall approve or disapprove the application. The expenses of

such examination and investigation shall be paid by the bank or trust

company which shall deposit with the commissioner a fee in an amount

established by rules and regulations adopted by the commissioner. Any

members of the board who make such an examination or investigation

shall be paid the sum of $35 per diem for the time they actually are

engaged in performing their duties as members of such board, and in

addition shall be paid all their actual and necessary expenses incurred in

the performance of such duties from such funds. The commissioner shall

remit all amounts received under this section to the state treasurer who

shall deposit the same in accordance with the provisions of K.S.A. 75-

4215, and amendments thereto. Upon receipt of each such remittance, the

state treasurer shall deposit the entire amount in the state treasury to the

credit of a separate special account in the state treasury for each appli-

cation. The moneys in each such account shall be used only to pay the

expenses of the examination and investigation to which it relates, and any

unused portion of such deposit shall be transferred to the bank commis-

sioner fee fund.

Sec. 46. K.S.A. 9-1917 is hereby amended to read as follows: 9-1917.

On and after July 1, 1972, and in every case occurring heretofore and

hereafter, in which funds due to creditors, depositors and shareholders

on liquidation of institutions under the jurisdiction of the state bank com-

missioner under K.S.A. 9-1901 et seq., and amendments thereto, are un-

delivered, they shall, together with accrued interest, if any, be paid to the

state bank commissioner, who shall deposit such payments with remit all

such payments to the state treasurer, in accordance with the provisions

of K.S.A. 75-4215, and amendments thereto, and credit such individual

creditors, depositors or shareholders account in the undistributed assets

of defunct institution fund ledger. Upon receipt of each such remittance,

the state treasurer shall credit all such deposits deposit the entire amount

in the state treasury to the credit of the undistributed assets of defunct

institutions fund which is hereby created. Said Such fund shall be used

only for refunds and payments of amounts due creditors, depositors and

shareholders on claims filed with and approved by the state bank com-

missioner. Any balance remaining in said the fund from any single defunct

institution five (5) years, during which time no person entitled thereto

shall have appeared to claim such funds, shall be transferred by the state

bank commissioner to the state general fund and appropriate entries

made in the individual creditors, depositors or shareholders record, show-

ing the date and disposition of the funds and shall further recite that they

were transferred by reason of this statute of limitation.

Sec. 47. K.S.A. 9-1918 is hereby amended to read as follows: 9-1918.

Whenever the state bank commissioner shall determine that property or

assets held in his or her the commissioner's custody and received as a

result of the liquidation of any institution under the jurisdiction of the

commissioner has remained in his or her the commissioner's custody for

a period of more than ten (10) 10 years, and no claim has been filed

during such period by any creditor, depositor or shareholder of such in-

stitution, said such property shall escheat to the state. The commissioner

shall notify the director of purchases of the property or assets so held and

the director of purchases shall authorize and provide for the sales of such

property or assets in the manner provided by law for the sale of obsolete

or unused property of the state. All proceeds from the sale of any such

property or assets shall be deposited remitted to the state treasurer in

accordance with the provisions of K.S.A. 75-4215, and amendments

thereto. Upon receipt of each such remittance, the state treasurer shall

deposit the entire amount in the state treasury to the credit of the state

general fund and appropriate entries made in the records of the state

bank commissioner showing the disposition of the property or assets, the

amount received therefor and the disposition thereof.

Sec. 48. K.S.A. 2000 Supp. 9-2107 is hereby amended to read as

follows: 9-2107. (a) As used in this section:

(1) ``Contracting trustee'' means any trust company, as defined in

K.S.A. 9-701, and amendments thereto, any bank that has been granted

trust authority by the state bank commissioner under K.S.A. 9-1602, and

amendments thereto, or any national bank chartered to do business in

Kansas that has been granted trust authority by the comptroller of the

currency under 12 USC 92a, or any bank that has been granted trust

authority or any trust company, regardless of where such bank or trust

company is located, and which is controlled, as defined in K.S.A. 9-1612,

and amendments thereto, by the same bank holding company as any trust

company, state bank or national bank chartered to do business in Kansas,

which accepts or succeeds to any fiduciary responsibility as provided in

this section;

(2) ``originating trustee'' means any trust company, bank, national

banking association, savings and loan association or savings bank which

has trust powers and its principal place of business is in this state and

which places or transfers any fiduciary responsibility to a contracting trus-

tee as provided in this section;

(3) ``financial institution'' means any bank, national banking associa-

tion, savings and loan association or savings bank which has its principal

place of business in this state but which does not have trust powers.

(b) Any contracting trustee and any originating trustee may enter into

an agreement by which the contracting trustee, without any further au-

thorization of any kind, succeeds to and is substituted for the originating

trustee as to all fiduciary powers, rights, duties, privileges and liabilities

with respect to all accounts for which the originating trustee serves in any

fiduciary capacity, except as may be provided otherwise in the agreement.

Notwithstanding the provisions of this section, no contracting trustee as

defined in K.S.A. 9-2107(a)(1), and amendments thereto, having its home

office outside the state of Kansas shall enter into an agreement except

with an originating trustee which is commonly controlled as defined in

K.S.A. 9-1612, and amendments thereto, by the same bank holding com-

pany.

(c) Unless the agreement expressly provides otherwise, upon the ef-

fective date of the substitution:

(1) The contracting trustee shall be deemed to be named as the fi-

duciary in all writings, including, without limitation, trust agreements,

wills and court orders, which pertain to the affected fiduciary accounts;

(2) the originating trustee is absolved from all fiduciary duties and

obligations arising under such writings and shall discontinue the exercise

of any fiduciary duties with respect to such writings, except that the orig-

inating trustee is not absolved or discharged from any duty to account

required by K.S.A. 59-1709, and amendments thereto, or any other ap-

plicable statute, rule of law, rules and regulations or court order, nor shall

the originating trustee be absolved from any breach of fiduciary duty or

obligation occurring prior to the effective date of the agreement.

(d) The agreement may authorize the contracting trustee:

(1) To establish a trust service desk at any office of the originating

trustee at which the contracting trustee may conduct any trust business

and any business incidental thereto and which the contracting trustee may

otherwise conduct at its principal place of business; and

(2) to engage the originating trustee as the agent of the contracting

trustee, on a disclosed basis to customers, for the purposes of providing

administrative, advertising and safekeeping services incident to the fidu-

ciary services provided by the contracting trustee.

(e) Any contracting trustee may enter into an agreement with a fi-

nancial institution providing that the contracting trustee may establish a

trust service desk as authorized by subsection (d) in the offices of such

financial institution and which provides such financial institution, on a

disclosed basis to customers, may act as the agent of contracting trustee

for purposes of providing administrative services and advertising incident

to the fiduciary services to be performed by the contracting trustee.

(f) No activity authorized by subsections (b) through (e) shall be con-

ducted by any contracting trustee, originating trustee or financial insti-

tution until an application for such authority has been submitted to and

approved by the commissioner. The application shall be in the form and

contain the information required by the commissioner, which shall at a

minimum include certified copies of the following documents:

(1) The agreement;

(2) the written action taken by the board of directors of the originat-

ing trustee or financial institution approving the agreement;

(3) all other required regulatory approvals;

(4) an affidavit of publication of notice of intent to file the application

with the commissioner. Publication of the notice shall be on the same day

for two consecutive weeks in the official newspaper of the city or county

where the principal office of the originating trustee or financial institution

is located. The notice shall be in the form prescribed by the commissioner

and shall contain the name of the applicant contracting trustee, the orig-

inating trustee or financial institution, the proposed date of filing of the

application with the commissioner, a solicitation for written comments

concerning the application, and a notice of the public's right to file a

written request for a public hearing for the purpose of presenting oral or

written evidence regarding the proposed agreement. All comments and

requests for public hearing shall be filed with the commissioner on or

before the 30th day after the date the application is filed; and

(5) a certification by the parties to the agreement that written notice

of the proposed substitution was sent by first-class mail to each cofidu-

ciary, each surviving settlor of a trust, each ward of a guardianship, each

person who has sole or shared power to remove the originating trustee

as fiduciary and each adult beneficiary currently receiving or entitled to

receive a distribution of principle or income from a fiduciary account

affected by the agreement, and that such notice was sent to each such

person's address as shown in the originating trustee's records. An unin-

tentional failure to give such notice shall not impair the validity or effect

of any such agreement, except an intentional failure to give such notice

shall render the agreement null and void as to the party not receiving the

notice of substitution.

(g) A contracting trustee making application to the commissioner for

approval of any agreement pursuant to this section shall pay to the com-

missioner a fee, in an amount established by rules and regulations of the

commissioner adopted pursuant to K.S.A. 9-1713, and amendments

thereto, to defray the expenses of the commissioner or designee in the

examination and investigation of the application. The commissioner shall

remit all amounts received under this section to the state treasurer who

shall deposit the same in accordance with the provisions of K.S.A. 75-

4215, and amendments thereto. Upon receipt of each such remittance, the

state treasurer shall deposit the entire amount in the state treasury to the

credit of a separate account in the state treasury for each application. The

money in each such account shall be used to pay the expenses of the

commissioner, or designee in the examination and investigation of the

application to which it relates and any unused balance shall be transferred

to the bank commissioner fee fund.

(h) Upon the filing of any such application with the commissioner,

the commissioner shall make or cause to be made, a careful examination

and investigation concerning:

(1) The reasonable probability of usefulness and success of the con-

tracting trustee;

(2) the financial history and condition of the contracting trustee in-

cluding the character, qualifications and experience of the officers em-

ployed by the contracting trustee; and

(3) whether the contracting agreement will result in any undue injury

to properly conducted existing banks, national banks and trust companies.

If the commissioner shall determine any of such matters unfavorably

to the applicants, the application shall be disapproved, but if not, then

the application shall be approved.

(i) If no written request for public hearing is filed, the commissioner

shall render approval or disapproval of the application within 60 days of

the date upon which the application was filed.

(j) If a written request for public hearing is filed, the commissioner

shall hold within 30 days of the close of the comment period, a public

hearing in a location determined by the commissioner. Notice of the time,

date and place of such hearing shall be published by the applicant in a

newspaper of general circulation in the county where the originating trus-

tee or financial institution is located, not less than 10 nor more than 30

days prior to the date of the hearing, and an affidavit of publication shall

be filed with the commissioner. At any such hearing, all interested persons

may present written and oral evidence to the commissioner in support of

or in opposition to the application. Upon completion of a transcript of

the testimony given at any such hearing, the transcript shall be filed in

the office of the commissioner. Within 14 days after the public hearing,

the commissioner shall approve or disapprove the application after con-

sideration of the application and evidence gathered during the commis-

sioner's investigation.

(k) The commissioner may extend the period for approval or disap-

proval if the commissioner determines that any information required by

this section has not been furnished, any material information submitted

is inaccurate or additional investigation is required. The commissioner,

prior to expiration of the application period provided for by this section,

shall give written notice to each party to the agreement of the commis-

sioner's intent to extend the period which shall include a specific date for

expiration of the extension period. If any information remains incomplete

or inaccurate upon the expiration of the extension period the application

shall be disapproved.

(l) Within 15 days of the date of the commissioner's approval or de-

nial, the applicant or any individual or corporation who filed a request for

and presented evidence at the public hearing shall have the right to appeal

in writing to the state banking board the commissioner's determination

by filing a notice of appeal with the commissioner. The state banking

board shall fix a date for hearing, which hearing shall be held within 45

days after such notice of appeal is filed. The board shall conduct the

hearing in accordance with the provisions of the Kansas administrative

procedure act and render its decision affirming or rescinding the deter-

mination of the commissioner. Any action of the board pursuant to this

section is subject to review in accordance with the act for judicial review

and civil enforcement of agency actions. Any party which files an appeal

to the state banking board of the commissioner's determination shall pay

to the commissioner a fee in an amount established by rules and regu-

lations of the commissioner, adopted pursuant to K.S.A. 9-1713, and

amendments thereto, to defray the board's expenses associated with the

conduct of the appeal.

(m) When the commissioner determines that any contracting trustee

domiciled in this state has entered into a contracting agreement in vio-

lation of the laws governing the operation of such contracting trustee, the

commissioner shall give written notice to the contracting trustee and the

originating trustee or financial institution of such determination. Within

15 days after receipt of such notification, the contracting trustee and

originating trustee or financial institution shall have the right to appeal in

writing to the state banking board the commissioner's determination. The

board shall fix a date for hearing, which shall be held within 45 days after

the date of the appeal and shall be conducted in accordance with the

Kansas administrative procedure act. At such hearing the board shall hear

all matters relevant to the commissioner's determination and shall ap-

prove or disapprove the commissioner's determination. The decision of

the board shall be final and conclusive. If the contracting trustee does

not appeal to the board from the commissioner's determination or if an

appeal is made and the commissioner's determination is upheld by the

board, the commissioner may proceed as provided in K.S.A. 9-1714, and

amendments thereto, until such time as the commissioner determines the

contracting trustee, originating trustee and financial institution are in full

compliance with the laws governing the operation of a contracting trustee

and originating trustee or financial institution.

(n) Any party entitled to receive a notice under subsection (f)(5) may

file a petition in the court having jurisdiction over the fiduciary relation-

ship, or if none, in the district court in the county where the originating

trustee has its principal office, seeking to remove any contracting trustee

substituted or about to be substituted as fiduciary pursuant to this section.

Unless the contracting trustee files a written consent to its removal or a

written declination to act subsequent to the filing of the petition, the

court, upon notice and hearing, shall determine the best interest of the

petitioner and all other parties concerned and shall fashion such relief as

it deems appropriate in the circumstances, including the awarding of rea-

sonable attorney fees. The right to file a petition under this subsection

shall be in addition to any other rights to remove fiduciary provided by

any other statute or regulation or by the writing creating the fiduciary

relationship. If the removal of the fiduciary is prompted solely as a result

of the contracting agreement, any reasonable cost associated with such

removal and transfer, not to exceed $200 per account, shall be paid by

the originating trustee or financial institution entering into the agreement.

Sec. 49. K.S.A. 2000 Supp. 9-2108 is hereby amended to read as

follows: 9-2108. It is unlawful for any trust company to establish or op-

erate a trust service office or relocate an existing trust service office except

as provided in this act:.

(a) As used in this section: ``Trust service office'' means any office,

agency or other place of business located within this state other than the

place of business specified in the trust company's certificate of authority,

at which the powers granted to trust companies under K.S.A. 9-2103, and

amendments thereto, are exercised. For the purposes of this section, any

activity in compliance with K.S.A. 9-2107, and amendments thereto, does

not constitute a trust service office;.

(b) After first applying for and obtaining the approval of the com-

missioner under this section, one or more trust service offices may be

established or operated in any city within this state by a trust company

incorporated under the laws of this state;.

(c) An application to establish or operate a trust service office or to

relocate an existing trust service office shall be in such form and contain

such information as required by the commissioner and shall include cer-

tified copies of the following documents:

(1) The written action taken by the board of directors of the trust

company approving the establishment or operation of the proposed trust

service office or the proposed relocation of the trust service office;

(2) all other required regulatory approvals; and

(3) an affidavit of publication of notice of intent to file an application

to establish or operate a trust service office or relocate an existing trust

service office. Publication of the notice shall be on the same day for two

consecutive weeks in the official newspaper of the city where the pro-

posed trust service office is to be located. The notice shall be in the form

prescribed by the commissioner and shall contain the name of the appli-

cant, the location of the proposed trust service office, the proposed date

of filing of the application with the commissioner, a solicitation for written

comments concerning the application and a notice of the public's right

to file a written request for a public hearing for the purpose of presenting

oral or written evidence regarding the proposed trust service office. All

comments and requests for public hearing shall be filed with the com-

missioner on or before the 30th day after the date the application is filed.

(d) A trust company making application to the commissioner for ap-

proval of a trust service office under this section shall pay to the com-

missioner a fee, in an amount established by rules and regulations of the

commissioner, adopted pursuant to K.S.A. 9-1713, and amendments

thereto, to defray the expenses of the commissioner or designee in the

examination and investigation of the application. The commissioner shall

remit all amounts received under this section to the state treasurer who

shall deposit the same in accordance with the provisions of K.S.A. 75-

4215, and amendments thereto. Upon receipt of each such remittance, the

state treasurer shall deposit the entire amount in the state treasury to the

credit of a separate account in the state treasury for each application. The

moneys in each such account shall be used to pay the expenses of the

commissioner or designee in the examination and investigation of the

application to which it relates and any unused balance shall be transferred

to the bank commissioner fee fund;.

(e) Upon filing of any such application with the commissioner, the

commissioner shall make or cause to be made, a careful examination and

investigation concerning:

(1) The reasonable probability of usefulness and success of the pro-

posed trust service office;

(2) the applicant trust company's financial history and condition in-

cluding the character, qualifications and experience of the officers em-

ployed by the trust company; and

(3) whether the proposed trust service office can be established with-

out undue injury to properly conducted existing banks, national banking

associations and trust companies. If the commissioner determines any of

such matters unfavorably to the applicants, the application shall be dis-

approved, but if not, the application shall be approved.

(f) If no written request for public hearing is filed, the commissioner

shall render approval or disapproval of the application within 60 days of

the date upon which the application was filed.

(g) If a written request for public hearing is filed, the commissioner

shall hold a public hearing in a location determined by the commissioner

within 30 days of the close of the comment period. Notice of the time,

date and place of the hearing shall be published by the applicant in a

newspaper of general circulation in the county where the proposed trust

service office is to be located, not less than 10 or more than 30 days prior

to the date of the hearing, and an affidavit of publication shall be filed

with the commissioner. At any such hearing, all interested persons shall

be allowed to present written and oral evidence to the commissioner in

support of or in opposition to the application. Upon completion of a tran-

script of the testimony given at any such hearing, the transcript shall be

filed in the office of the commissioner. Within 14 days after the public

hearing, the commissioner shall approve or disapprove the application

after consideration of the application and evidence gathered during the

commissioner's investigation.

(h) The commissioner may extend the period for approval or disap-

proval if the commissioner determines that any information required by

this section has not been furnished, any material information submitted

is inaccurate or additional investigation is required. The commissioner,

prior to expiration of the application period as provided in this section,

shall give written notice to the applicant of the commissioner's intent to

extend the period and such notice shall include a specific date for expi-

ration of the extension period. If any information remains incomplete or

inaccurate upon the expiration of the extension period the application

shall be disapproved.

(i) Within 15 days of the date after the commissioner's approval or

disapproval of the application, the applicant or any individual or corpo-

ration who filed a request for and presented evidence at the public hear-

ing shall have the right to appeal in writing to the state banking board

the commissioner's determination, by filing a notice of appeal with the

commissioner. The state banking board shall fix a date for a hearing,

which hearing shall be held within 45 days from the date such notice of

appeal is filed. The board shall conduct the hearing in accordance with

the provisions of the Kansas administrative procedure act and render its

decision affirming or rescinding the determination of the commissioner.

Action of the board pursuant to this section is subject to review in ac-

cordance with the act for judicial review and civil enforcement of agency

actions. Any party which files an appeal to the state banking board of the

commissioner's determination shall pay to the commissioner a fee in an

amount established by rules and regulations of the commissioner, adopted

pursuant to K.S.A. 9-1713, and amendments thereto, to defray the board's

expenses associated with the conduct of the appeal.

(j) When the commissioner determines that a trust company domi-

ciled in this state has established or is operating a trust service office in

violation of the laws governing the operation of such trust company, the

commissioner shall give written notice to the trust company of such de-

termination. Within 15 days after receipt of such notification, the trust

company may appeal in writing to the state banking board the commis-

sioner's determination. The board shall fix a date for hearing, which hear-

ing shall be held within 45 days from the date of such appeal and shall

be conducted in accordance with the provisions of the Kansas adminis-

trative procedure act. At such hearing the board shall hear all matters

relevant to the commissioner's determination and shall approve or dis-

approve the commissioner's determination, and the decision of the board

shall be final and conclusive. If the trust company does not appeal to the

state banking board from the commissioner's determination or if an ap-

peal is made and the commissioner's determination is upheld by the

board, the commissioner may proceed as provided in K.S.A. 9-1714, and

amendments thereto, until such time as the commissioner determines the

trust company is in full compliance with the laws governing the operation

of a trust service office.

Sec. 50. K.S.A. 2000 Supp. 12-1694 is hereby amended to read as

follows: 12-1694. (a) Any tax levied and collected pursuant to K.S.A. 12-

1693, and amendments thereto, shall become due and payable by the

business monthly, on or before the 25th day of the month immediately

succeeding the month in which it is collected, with the first payment due

and payable on or before the 25th day of the month specified in the

resolution of the governing body which levies the tax, but any person

filing an annual or quarterly return under the Kansas retailers' sales tax

act, as prescribed in K.S.A. 79-3607, and amendments thereto, may, with

the approval of the secretary of revenue and upon such conditions as the

secretary of revenue may prescribe, pay the tax required by this act on

the same basis and at the same time such person pays the retailer's sales

tax. Each business shall make a true report to the department of revenue,

on a form prescribed by the secretary of revenue, providing such infor-

mation as may be necessary to determine the amounts to which any such

tax shall apply for all gross rental receipts for the applicable month or

months, which report shall be accompanied by the tax disclosed thereby.

Records of gross rental receipts shall be kept separate and apart from the

records of other retail sales made by a business in order to facilitate the

examination of books and records as provided herein.

(b) The secretary of revenue or the secretary's authorized represen-

tative shall have the right at all reasonable times during business hours

to make such examination and inspection of the books and records of a

business as may be necessary to determine the accuracy of such reports.

(c) The secretary of revenue is hereby authorized to administer and

collect any transient guest tax levied pursuant to this act and to adopt

such rules and regulations as may be necessary for the efficient and ef-

fective administration and enforcement of the collection thereof. When-

ever any business liable to pay any transient guest tax refuses or neglects

to pay the same, the amount, including any penalty, shall be collected in

the manner prescribed for the collection of the retailers' sales tax by

K.S.A. 79-3617, and amendments thereto. All of the taxes collected under

the provisions of this act shall be paid into the state treasury daily remitted

by the secretary of revenue to the state treasurer in accordance with the

provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of

each such remittance, the state treasurer shall deposit the entire amount

in the state treasury, and the state treasurer shall place credit 2% of all

taxes so collected in to the state general fund to defray the expenses of

the department in administration and enforcement of the collection

thereof. The remainder of such taxes shall be credited to the county and

city transient guest tax fund, which fund is hereby established. All moneys

in the county and city transient guest tax fund shall be remitted at least

quarterly by the state treasurer, on instruction from the secretary of rev-

enue, to the treasurers of those cities which, by virtue of their partici-

pation in the election provided for in K.S.A. 12-1693, and amendments

thereto, are qualified to receive disbursements from such transient guest

tax fund for the amount collected within such city, and to the treasurer

of such county for the amount collected in the unincorporated areas of

such county.

(d) The director of taxation shall provide, upon request by a city or

county clerk or treasurer of any city or county levying a transient guest

tax, monthly reports identifying each person doing business in such city

or county to which such tax is applicable setting forth the tax liability and

the amount of such tax remitted by such business during the preceding

month, and identifying each business location maintained by the person

within such city or county. Such report shall be made available to the

clerk or treasurer of such city or county within a reasonable time after it

has been requested from the director of taxation. The director of taxation

shall be allowed to assess a reasonable fee for the issuance of such report.

Information received by any city or county pursuant to this section shall

be kept confidential, and it shall be unlawful for any officer or employee

of such city or county to divulge any such information in any manner. Any

violation of this paragraph by a city or county officer or employee is a

class B misdemeanor, and such officer or employee shall be dismissed

from office.

(e) All such moneys received by the county treasurer or city treasurer

from disbursements from the county and city transient guest tax fund

shall be credited to the tourism and convention promotion fund of such

county or city and shall only be expended for convention and tourism

promotion, except that not more than 20% of the moneys credited to

such fund shall be expended for tourism promotion.

Sec. 51. K.S.A. 2000 Supp. 12-1698 is hereby amended to read as

follows: 12-1698. (a) Any tax levied and collected pursuant to K.S.A. 12-

1697, and amendments thereto, shall become due and payable by the

business monthly, on or before the 25th day of the month immediately

succeeding the month in which it is collected, with the first payment due

and payable on or before the 25th day of the month specified in the

resolution of the governing body which levies the tax, but any person

filing an annual or quarterly return under the Kansas retailers' sales tax

act, as prescribed in K.S.A. 79-3607, and amendments thereto, shall, upon

such conditions as the secretary of revenue may prescribe, pay the tax

required by this act on the same basis and at the same time such person

pays the retailers' sales tax. Each business shall make a true report to the

department of revenue, on a form prescribed by the secretary of revenue,

providing such information as may be necessary to determine the amounts

to which any such tax shall apply for all gross rental receipts for the

applicable month or months, which report shall be accompanied by the

tax disclosed thereby. Records of gross rental receipts shall be kept sep-

arate and apart from the records of other retail sales made by a business

in order to facilitate the examination of books and records as provided

herein.

(b) The secretary of revenue or the secretary's authorized represen-

tative shall have the right at all reasonable times during business hours

to make such examination and inspection of the books and records of a

business as may be necessary to determine the accuracy of such reports.

(c) The secretary of revenue is hereby authorized to administer and

collect any transient guest tax levied pursuant to this act and to adopt

such rules and regulations as may be necessary for the efficient and ef-

fective administration and enforcement of the collection thereof. When-

ever any business liable to pay any transient guest tax refuses or neglects

to pay the same, the amount, including any penalty, shall be collected in

the manner prescribed for the collection of the retailers' sales tax by

K.S.A. 79-3617, and amendments thereto. All of the taxes collected under

the provisions of this act shall be paid into the state treasury daily remitted

by the secretary of revenue to the state treasurer in accordance with the

provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of

each such remittance, the state treasurer shall deposit the entire amount

in the state treasury, and the state treasurer shall place credit 2% of all

taxes so collected in to the state general fund to defray the expenses of

the department in administration and enforcement of the collection

thereof. The remainder of such taxes shall be credited to the county or

city transient guest tax fund, which fund is hereby established. All moneys

in the county or city transient guest tax fund shall be remitted at least

quarterly by the state treasurer to the county or city treasurer of each

county or city levying a transient guest tax under the provisions of this

act in the proportion, as certified by the director of taxation, that the

amount collected from such tax in each such county or city bears to the

total amount collected from such taxes in all counties or cities for the

period covered by the distribution.

(d) The director of taxation shall provide, upon request by a city or

county clerk or treasurer of any city or county levying a transient guest

tax, monthly reports identifying each person doing business in such city

or county to which such tax is applicable setting forth the tax liability and

the amount of such tax remitted by such business during the preceding

month, and identifying each business location maintained by the person

within such city or county. Such report shall be made available to the

clerk or treasurer of such city or county within a reasonable time after it

has been requested from the director of taxation. The director of taxation

shall be allowed to assess a reasonable fee for the issuance of such report.

Information received by any city or county pursuant to this section shall

be kept confidential, and it shall be unlawful for any officer or employee

of such city or county to divulge any such information in any manner. Any

violation of this paragraph by a city or county officer or employee is a

class B misdemeanor, and such officer or employee shall be dismissed

from office.

(e) Except as otherwise provided in K.S.A. 12-1774, and amendments

thereto, all such moneys received by the county or city treasurer from

disbursements from the county or city transient guest tax fund shall be

credited to the tourism and convention promotion fund of such county

or city and shall only be expended for convention and tourism promotion.

Sec. 52. K.S.A. 2000 Supp. 12-2539 is hereby amended to read as

follows: 12-2539. (a) The board of county commissioners of any county

which has been authorized by a majority of the electors of the county to

create or to become a part of the metropolitan culture district and to levy

and collect a tax for the purpose of contributing to the financial support

of the district shall adopt a resolution imposing a countywide retailers'

sales tax and pledging the revenues received therefrom for such purpose.

The rate of such tax shall be fixed in an amount of not more than .25%.

Any county levying a retailers' sales tax under authority of this section is

hereby prohibited from administering or collecting such tax locally, but

shall utilize the services of the state department of revenue to administer,

enforce and collect such tax. The sales tax shall be administered, enforced

and collected in the same manner and by the same procedure as other

countywide retailers' sales taxes are levied and collected and shall be in

addition to any other sales tax authorized by law. Upon receipt of a cer-

tified copy of a resolution authorizing the levy of a countywide retailers'

sales tax pursuant to this section, the state director of taxation shall cause

such tax to be collected within and outside the boundaries of such county

at the same time and in the same manner provided for the collection of

the state retailers' sales tax. All moneys collected by the director of tax-

ation under the provisions of this section shall be credited remitted to the

state treasurer in accordance with the provisions of K.S.A. 75-4215, and

amendments thereto. Upon receipt of each such remittance, the state trea-

surer shall deposit the entire amount in the state treasury to the credit of

the metropolitan culture district retailers' sales tax fund which fund is

hereby established in the state treasury. Any refund due on any county-

wide retailers' sales tax collected pursuant to this section shall be paid out

of the sales tax refund fund and reimbursed by the director of taxation

from retailers' sales tax revenue collected pursuant to this section. All

countywide retailers' sales tax revenue collected within any county pur-

suant to this section shall be remitted at least quarterly by the state trea-

surer, on instruction from the director of taxation, to the treasurer of such

county.

(b) All revenue received by any county treasurer from a countywide

retailers' sales tax imposed pursuant to this section shall be appropriated

by the county to the metropolitan culture district commission within 60

days of receipt of the funds by the county for expenditure by the com-

mission pursuant to and in accordance with the provisions of the Kansas

and Missouri metropolitan culture district compact. If any such revenue

remains upon nullification and voidance of the Kansas and Missouri met-

ropolitan culture district compact, the county treasurer shall deposit such

revenue to the credit of the general fund of the county.

(c) Any countywide retailers' sales tax imposed pursuant to this sec-

tion shall expire upon the date of actual withdrawal of the county from

the metropolitan culture district or at any time the Kansas and Missouri

metropolitan culture district compact becomes null and void and of no

further force or effect. If any moneys remain in the metropolitan culture

district retailers' sales tax fund upon nullification and voidance of the

Kansas and Missouri metropolitan culture district compact, the state trea-

surer shall transfer such moneys to the county and city retailers' sales tax

fund to be apportioned and remitted at the same time and in the same

manner as other countywide retailers' sales tax revenues are apportioned

and remitted.

Sec. 53. K.S.A. 12-2623 is hereby amended to read as follows: 12-

2623. The expense of state supervision of the group-funded pools shall

be financed in the following manner:

(a) There is hereby created in the state treasury a fund to be called

the group-funded pools fee fund. All amounts which are required to be

paid from the group-funded pools fee fund for the operating expenditures

incident to the supervision of the group-funded pools shall be paid from

the group-funded pools fee fund. The commissioner of insurance shall

be responsible for administering the group-funded pools fee fund and all

payments from the fund shall be upon warrants of the director of accounts

and reports issued pursuant to vouchers approved by the commissioner

of insurance or a person or persons designated by the commissioner.

(b) The commissioner of insurance shall estimate as soon as practical

after January 1 of each year the expenses necessary for the supervision of

the group-funded pools for the fiscal year beginning on July 1 thereafter.

Not later than June 1 of each year, the commissioner of insurance shall

notify all such group-funded pools of the amount of each assessment

imposed under this subsection on such group-funded pools and the same

shall be due and payable to the commissioner on the July 1 following.

(c) The commissioner of insurance shall remit all moneys received by

or for such remittance to the state treasurer in accordance with the pro-

visions of K.S.A. 75-4215, and amendments thereto. Upon receipt of any

each such remittance, the state treasurer shall deposit the entire amount

thereof in the state treasury to the credit of the group-funded pools fee

fund.

Sec. 54. K.S.A. 2000 Supp. 12-4116 is hereby amended to read as

follows: 12-4116. In each case filed in municipal court where there is a

finding of guilty or a plea of guilty, a plea of no contest, forfeiture of bond,

or a diversion, a sum in an amount not to exceed $1 shall be assessed for

the training, testing and continuing judicial education of municipal judges

as provided in K.S.A. 12-4114, and amendments thereto. Except as pro-

vided herein, the judge or clerk of the municipal court shall remit at least

monthly all assessments received pursuant to this section to the state

treasurer for deposit in accordance with the provisions of K.S.A. 75-4215,

and amendments thereto. Upon receipt of each such remittance, the state

treasurer shall deposit the entire amount in the state treasury to the credit

of the judicial branch education fund. If the amount of assessments col-

lected in a month are less than $250, the municipal court may delay

remitting its assessments until a month in which the cumulative amount

of assessments collected equals or exceeds $250. If the cumulative

amount of assessments collected never equals or exceeds $250 for the

year, the amount of assessments collected and on hand on December 31

of the year shall be remitted to the state treasurer. The specific amount

of the assessment shall be fixed by order of the supreme court and shall

apply uniformly to all cities. For the purpose of determining the amount

to be assessed according to this section, if more than one complaint is

filed against one individual arising out of the same incident, all such com-

plaints shall be considered as one case. For the purpose of this section,

parking violations shall not be considered as cases.

Sec. 55. K.S.A. 2000 Supp. 12-4117 is hereby amended to read as

follows: 12-4117. (a) On and after July 1, 1996, in each case filed in

municipal court charging a crime other than a nonmoving traffic violation,

where there is a finding of guilty or a plea of guilty, a plea of no contest,

forfeiture of bond or a diversion, a sum in an amount of $7 shall be

assessed and such assessment shall be credited as follows:

(1) During the period commencing July 1, 1996, and ending June 30,

1997, $1 to the local law enforcement training reimbursement fund es-

tablished pursuant to K.S.A. 74-5620, and amendments thereto, $4 to the

law enforcement training center fund established pursuant to K.S.A. 74-

5619, and amendments thereto, $.50 to the protection from abuse fund

established pursuant to K.S.A. 74-7325, and amendments thereto, and

$.50 to the crime victims assistance fund established pursuant to K.S.A.

74-7334, and amendments thereto;

(2) on and after July 1, 1997, $1 One dollar to the local law enforce-

ment training reimbursement fund established pursuant to K.S.A. 74-

5620, and amendments thereto, $2 to the law enforcement training center

fund established pursuant to K.S.A. 74-5619, and amendments thereto,

$2 to the juvenile detention facilities fund established pursuant to K.S.A.

79-4803, and amendments thereto, to be expended for operational costs

of facilities for the detention of juveniles, $.50 to the protection from

abuse fund established pursuant to K.S.A. 74-7325, and amendments

thereto and, $.50 to the crime victims assistance fund established pur-

suant to K.S.A. 74-7334, and amendments thereto; and

(3) on and after July 1, 1999, $1 to the trauma fund established pur-

suant to K.S.A. 2000 Supp. 75-5670, and amendments thereto.

(b) The judge or clerk of the municipal court shall remit at least

monthly the appropriate assessments received pursuant to this section to

the state treasurer for deposit in accordance with the provisions of K.S.A.

75-4215, and amendments thereto. Upon receipt of each such remittance,

the state treasurer shall deposit the entire amount in the state treasury to

the credit of the local law enforcement training reimbursement fund, the

law enforcement training center fund, the juvenile detention facilities

fund, the crime victims assistance fund and the trauma fund as provided

in this section.

(c) For the purpose of determining the amount to be assessed ac-

cording to this section, if more than one complaint is filed in the municipal

court against one individual arising out of the same incident, all such

complaints shall be considered as one case.

Sec. 56. K.S.A. 2000 Supp. 13-13a38 is hereby amended to read as

follows: 13-13a38. (a) The board of regents of Washburn University of

Topeka may adopt a resolution imposing a countywide retailers' sales tax

within Shawnee county. Such resolution shall be published once each

week for two consecutive weeks in the Shawnee county official newspa-

per. The rate of any such tax shall not exceed .65%. Such university is

prohibited from administering or collecting such tax locally, but shall util-

ize the services of the state department of revenue to administer, enforce

and collect such tax. Except as otherwise provided by K.S.A. 2000 Supp.

13-13a39, and amendments thereto, such tax shall be identical in its ap-

plication and exemptions therefrom to the Kansas retailers' sales tax act,

and all laws and rules and regulations of the state department of revenue

relating to the Kansas retailers' sales tax act shall apply to such tax insofar

as the same may be made applicable.

(b) The secretary of revenue is authorized to administer, enforce and

collect the university's retailers' sales tax and to adopt such rules and

regulations necessary for the efficient and effective administration, en-

forcement and collection thereof. The state director of taxation shall cause

such taxes to be collected within the boundaries of Shawnee county at

the same time and in the same manner provided for the collection of the

state retailers' sales tax. All moneys collected by the director of taxation

pursuant to the provisions of this section shall be credited remitted to the

state treasurer in accordance with the provisions of K.S.A. 75-4215, and

amendments thereto. Upon receipt of each such remittance, the state trea-

surer shall deposit the entire amount in the state treasury to the credit of

the Washburn University of Topeka retailers' sales tax fund, which fund

is hereby established in the state treasury. Any refund due on any tax

collected pursuant to this section shall be paid out of the sales tax refund

fund and reimbursement to such fund shall be made by the director of

taxation from collections of the university's sales tax revenue. All moneys

collected pursuant to this section for such university shall be remitted at

least quarterly by the state treasurer to the treasurer of such university.

(c) All revenue received by Washburn University of Topeka from its

retailers' sales tax shall be used solely for the purpose of financing its

operations regarding all support activities described by K.S.A. 13-13a18,

and amendments thereto.

(d) If within 30 days of the final publication of a resolution adopted

pursuant to subsection (a), a petition signed by a number of electors of

the county equal to not less than 5% of the number of qualified electors

of the county shall be filed in the office of the county election officer

demanding that such resolution be submitted to a vote of the electors, it

shall not take effect until submitted to a referendum and approved by

the electors. An election if called, shall be called within 30 days and held

within 45 days after the filing of the petition. The board, by resolution,

shall call the election and fix the date. Such resolution shall be published

once each week for two consecutive weeks in the official county news-

paper, and the election shall be conducted in the same manner as are

elections for officers of such county. Such election may be conducted in

accordance with the provisions of the mail ballot election act. The prop-

osition shall be: ``Shall Washburn University of Topeka be authorized to

impose a countywide sales tax not to exceed .65% in Shawnee county for

purposes of eliminating 15 mills of ad valorem property taxes now levied

by the university and eliminating the payment of out-district tuition by

the townships within Shawnee county to the university?''

(e) The provisions of K.S.A. 12-191 and 12-191a, and amendments

thereto, insofar as may be made applicable, shall apply to sales subject to

the tax imposed pursuant to this section.

Sec. 57. K.S.A. 2000 Supp. 16a-2-302 is hereby amended to read as

follows: 16a-2-302. (1) (a) The administrator shall receive and act on all

applications for licenses to make supervised loans under this act. Appli-

cations shall be filed in the manner prescribed by the administrator and

shall contain the information the administrator may require by rule and

regulation to make an evaluation of the financial responsibility, character

and fitness of the applicant.

(b) Submitted with each application shall be a nonrefundable appli-

cation fee. Application and license fees shall be in such amounts as are

established pursuant to subsection (5) of K.S.A. 16a-6-104, and amend-

ments thereto. The license year shall be the calendar year. Each license

shall be nonrefundable and nonassignable, and shall remain in force until

surrendered, suspended or revoked.

(c) The administrator shall remit all moneys received under K.S.A.

16a-1-101 to 16a-6-414, inclusive, and amendments thereto, to the state

treasurer at least monthly in accordance with the provisions of K.S.A. 75-

4215, and amendments thereto. Upon receipt of any each such remittance,

the state treasurer shall deposit the entire amount thereof in the state

treasury. Of each deposit 20% shall be credited to the state general fund

and the balance shall be credited to the bank commissioner fee fund. All

expenditures from such fund shall be made in accordance with appro-

priation acts upon warrants of the director of accounts and reports issued

pursuant to vouchers approved by the administrator or by a person or

persons designated by the administrator.

The 20% credit to the state general fund required by this subsection

(c) is to reimburse the state general fund for accounting, auditing, budg-

eting, legal, payroll, personnel and purchasing services, and any and all

other state governmental services, which are performed on behalf of the

administrator by other state agencies which receive appropriations from

the state general fund to provide such services. Nothing in this subsection

(c) shall be deemed to authorize remittances to be made less frequently

than is authorized under K.S.A. 75-4215, and amendments thereto.

(d) Every licensee shall, on or before the first day of January, pay to

the administrator the license fee prescribed under this subsection (1) for

each license held for the succeeding license year. Failure to pay the li-

cense fee within the time prescribed shall automatically revoke the li-

cense.

(2) No license shall be issued unless the administrator, upon inves-

tigation, finds that the financial responsibility, character and fitness of the

applicant, and of the members thereof if the applicant is a copartnership

or association and of the officers and directors thereof, if the applicant is

a corporation, are such as to warrant belief that the business will be op-

erated honestly and fairly within the purposes of this act. An applicant

meets the minimum standard of financial responsibility for engaging in

the business of making supervised loans, under subsection (1) of K.S.A.

16a-2-301, and amendments thereto, only if the applicant has filed with

the administrator a proper surety bond of at least $100,000 which has

been approved by the administrator. The required surety bond may not

be canceled by the licensee without providing the administrator at least

30 days' prior written notice and must provide within its terms that the

bond shall not expire for two years after the date of the surrender, rev-

ocation or expiration of the subject license, whichever shall first occur.

(3) The administrator may deny any application or renewal for a su-

pervised loan license if the administrator finds:

(a) There is a refusal to furnish information required by the admin-

istrator within a reasonable time as fixed by the administrator; or

(b) any of the factors stated in K.S.A. 16a-2-303, and amendments

thereto, as grounds for denial, revocation or suspension of a license.

(4) Upon written request the applicant is entitled to a hearing on the

question of license qualifications if: (a) The administrator has notified the

applicant in writing that the application has been denied; or (b) the ad-

ministrator has not issued a license within 60 days after the application

for the license was filed. A request for a hearing may not be made more

than 15 days after the administrator has mailed a writing to the applicant

notifying the applicant that the application has been denied and stating

in substance the administrator's findings supporting denial of the appli-

cation.

(5) The administrator shall adopt rules and regulations regarding

whether a licensee shall be required to obtain a single license for each

place of business or whether a licensee may obtain a master license for

all of its places of business, and in so doing the administrator may differ-

entiate between licensees located in this state and licensees located else-

where. Each license shall remain in full force and effect until surrendered,

suspended or revoked.

(6) No licensee shall change the location of any place of business

without giving the administrator at least 15 days prior written notice.

(7) A licensee may conduct the business of making supervised loans

only at or from any place of business for which the licensee holds a license

and not under any other name than that in the license. Loans made pur-

suant to a lender credit card do not violate this subsection.

Sec. 58. K.S.A. 17-1271 is hereby amended to read as follows: 17-

1271. (a) The securities commissioner shall remit all moneys received

from all fees, charges, deposits or penalties which have been collected

under the Kansas securities act or other laws of this state regulating the

issuance, sale or disposal of securities or regulating dealers in this state

or under the uniform land sales practices act, to the state treasurer at

least monthly in accordance with the provisions of K.S.A. 75-4215, and

amendments thereto. Upon receipt of any each such remittance, the state

treasurer shall deposit the entire amount thereof in the state treasury.

Twenty percent of each such deposit shall be credited to the state general

fund and the balance shall be credited to the securities act fee fund.

(b) On the last day of each fiscal year, the director of accounts and

reports shall transfer from the securities act fee fund to the state general

fund any remaining unencumbered amount in the securities act fee fund

exceeding $50,000 so that the beginning unencumbered balance in the

securities act fee fund on the first day of each fiscal year is $50,000. All

expenditures from the securities act fee 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 securities commis-

sioner or by a person or persons designated by the securities commis-

sioner.

(c) All amounts transferred from the securities act fee fund to the

state general fund under subsection (b) are to reimburse the state general

fund for accounting, auditing, budgeting, legal, payroll, personnel and

purchasing services and any other governmental services which are per-

formed on behalf of the state agency involved by other state agencies

which receive appropriations from the state general fund to provide such

services. Such reimbursements are in addition to those authorized by

K.S.A. 75-3170a, and amendments thereto.

Sec. 59. K.S.A. 17-2206a is hereby amended to read as follows: 17-

2206a. On and after July 1, 1972, and in every case occurring heretofore

and hereafter, in which funds due to creditors, depositors and sharehold-

ers on liquidation of institutions under the jurisdiction of the credit union

administrator under K.S.A. 17-2206 and 17-2230, and amendments

thereto, are undelivered, they shall, together with accrued interest, if any,

be paid to the credit union administrator, who shall deposit remit such

payments with to the state treasurer, in accordance with the provisions

of K.S.A. 75-4215, and amendments thereto, and credit such individual

creditors, depositors or shareholders account in the undistributed assets

of defunct credit union fund ledger. The state treasurer shall credit all

such deposits deposit the entire amount in the state treasury to the credit

of the undistributed assets of defunct credit unions fund which is hereby

created. Said Such fund shall be used only for refunds and payments of

amounts due creditors, depositors and shareholders on claims filed with

and approved by the credit union administrator. Any balance remaining

in said the fund from any single defunct credit union five (5) years, during

which time no person entitled thereto shall have appeared to claim such

funds, shall be transferred by the credit union administrator to the state

general fund and appropriate entries made in the individual creditors,

depositors or shareholders record, showing the date and disposition of

the funds and shall further recite that they were transferred by reason of

this statute of limitation.

Sec. 60. K.S.A. 17-2236 is hereby amended to read as follows: 17-

2236. Before entering their respective duties, the administrator, each

credit union examiner, and any other employee within the credit union

department as determined in accordance with the provisions of K.S.A.

75-4104, and amendments thereto, shall give a bond set at a minimum

of $25,000 per individual conditioned upon the faithful and impartial

discharge of their respective duties and the proper accounting for all

funds which may come into their hands. Such bonds shall be executed by

a surety company authorized to do business in this state. Such bonds shall

be approved by the committee on surety bonds and insurance and filed,

with the approval of such committee endorsed thereon together with the

oaths of office of such officers and employees, with the secretary of state.

Premium on such bonds shall be paid from the credit union fee fund.

Suits may be maintained on such bonds in the name of the state for the

use of the party or parties injured by a breach thereof.

The administrator shall remit all moneys received by or for the admin-

istrator from fees, charges or penalties to the state treasurer at least

monthly in accordance with the provisions of K.S.A. 75-4215, and amend-

ments thereto. Upon receipt of any each such remittance, the state trea-

surer shall deposit the entire amount thereof in the state treasury. Twenty

percent of each such deposit shall be credited to the state general fund

and the balance shall be credited to the credit union fee fund. All ex-

penditures from such fund shall be made in accordance with appropria-

tion acts upon warrants of the director of accounts and reports issued

pursuant to vouchers approved by the administrator or by a person or

persons designated by the administrator. The compensation of members

and employees, office costs and other actual and necessary expenses of

the department and expenses incurred in the administration and enforce-

ment of this act shall be paid from the credit union fee fund.

Sec. 61. K.S.A. 17-2265 is hereby amended to read as follows: 17-

2265. In addition to other fees authorized by law, the credit union ad-

ministrator shall fix and collect appropriate fees among all state-chartered

credit unions which are insured by guarantee corporations regulated by

the administrator for the administration of the provisions of K.S.A. 17-

2250 to 17-2261, inclusive, and amendments thereto. The credit union

administrator shall remit all fees collected under this section to the state

treasurer in accordance with the provisions of K.S.A. 75-4215, and

amendments thereto. Upon receipt thereof of each such remittance, the

state treasurer shall deposit the entire amount thereof in the state treasury

and shall credit the entire amount of such deposit to the credit of the

credit union fee fund.

Sec. 62. K.S.A. 17-5610 is hereby amended to read as follows: 17-

5610. Every association shall at least four times annually file in the office

of the commissioner a statement in such form as the commissioner pre-

scribes. Such report shall show in detail the resources and liabilities of

the association at the close of business upon the date determined by the

commissioner and shall be verified by the president, treasurer or secretary

and shall be filed with the commissioner within 30 days. An association

may comply with this section by filing with the commissioner a completed

thrift financial report within 30 days of the final day of a reporting period

as required by the office of thrift supervision pursuant to 12 C.F.R. sec-

tion 563.180, and amendments thereto. A late penalty fee of $5 per day

shall be charged for each day the report is not received after the due

date, but shall not exceed a maximum of $150. The commissioner shall

remit all moneys received by or for the commissioner from fees, charges

or penalties to the state treasurer at least monthly in accordance with the

provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of

any each such remittance, the state treasurer shall deposit the entire

amount thereof in the state treasury. Twenty percent of each such deposit

shall be credited to the state general fund and the balance thereof shall

be credited to the bank commissioner fee fund.

Sec. 63. K.S.A. 17-5701 is hereby amended to read as follows: 17-

5701. Associations shall pay to the commissioner fees due under the pro-

visions of this section and K.S.A. 17-5702 to 17-5707, inclusive, and

amendments thereto. The commissioner shall remit all moneys received

by or for the commissioner from fees, charges or penalties to the state

treasurer at least monthly in accordance with the provisions of K.S.A. 75-

4215, and amendments thereto. Upon receipt of any each such remittance,

the state treasurer shall deposit the entire amount thereof in the state

treasury. Twenty percent of each such deposit shall be credited to the

state general fund and the balance shall be credited to the bank com-

missioner fee fund.

Upon the filing with the commissioner of a certificate of incorporation

the incorporators shall simultaneously pay an incorporation fee of $200.

Any savings and loan association incorporated under this act, or any prior

act, may extend the duration of time for which such association was or-

ganized by a vote of 51% of its shareholders present in person or by proxy

at any association annual or special meeting called for that purpose, and

such action of the shareholders shall be certified to the state bank com-

missioner accompanied by a fee of $12.50.

Sec. 64. K.S.A. 17-7508 is hereby amended to read as follows: 17-

7508. All taxes paid pursuant to the provisions of this act shall be rounded

off to the nearest $1, and unless other disposition is specifically provided

by law, the taxes collected under the provisions of this act and all over-

payments which may not be refunded under this section shall be depos-

ited remitted to the state treasurer in accordance with the provisions of

K.S.A. 75-4215, and amendments thereto. Upon receipt of each such re-

mittance, the state treasurer shall deposit the entire amount in the state

treasury, and the state treasurer shall credit the entire amount thereof to

the credit of the state general fund. The secretary of state shall not refund

any overpayment of franchise taxes which is equal to $1 or less, shall not

credit any domestic corporation or foreign corporation with any amount

which may not be refunded under this section, and shall not require

reimbursement for any underpayment of franchise taxes which is less than

$1. No refund shall be allowed by the secretary of state after three years

from the date prescribed by law for filing the report, 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 report was filed after the due date,

a refund claim must be filed not later than three years from the time the

report was actually filed.

Sec. 65. K.S.A. 2000 Supp. 17-7509 is hereby amended to read as

follows: 17-7509. (a) In case any corporation organized for profit which

is required to file an annual report and pay the annual franchise tax pre-

scribed by this act shall fail or neglect to make such report at the time

prescribed, such corporation shall be subject to a penalty of $75. Such

penalty and the annual tax or taxes required to be paid by this act may

be recovered by an action in the name of the state, and all moneys re-

covered shall be paid into remitted to the state treasurer in accordance

with the provisions of K.S.A. 75-4215, and amendments thereto. Upon

receipt of each such remittance, the state treasurer shall deposit the entire

amount in the state treasury to the credit of the state general fund.

(b) On complaint of the secretary of state that any corporation has

failed to pay the annual taxes prescribed by this act, it shall be the duty

of the county or district attorney, or the attorney general, to institute such

action in the district court of Shawnee county, Kansas, or of any county

in which such corporation has an office or place of business.

(c) The penalties provided for in subsection (a) also may be assessed

against any corporation for the reason that such corporation has been

canceled or its existence forfeited pursuant to the Kansas general cor-

poration code. No penalty shall be charged pursuant to this subsection,

if a corporation is assessed penalties pursuant to grounds specified in

subsection (a).

Sec. 66. K.S.A. 17-7515 is hereby amended to read as follows: 17-

7515. (a) The secretary of state shall have authority to place and maintain,

in a confidential file, that portion of an annual report of a corporation or

limited partnership, including the amount of any fee based thereon, con-

taining the financial information required by subsection (a)(6) of K.S.A.

17-7503, subsection (a)(8) of K.S.A. 17-7505, subsection (a) of K.S.A. 17-

2718, subsection (b)(3) of K.S.A. 56-1a606 or subsection (b)(3) of K.S.A.

56-1a607, and amendments thereto, upon application verifying to the

secretary of state, that such corporation or limited partnership:

(1) Has a net worth of at least $5,000 that is equal to at least 5% of

its total assets, determined in accordance with generally accepted ac-

counting principles;

(2) has never been the subject of a proceeding under chapter 7, 11

or 13 of the federal bankruptcy laws or any similar provision of any state

law, any amendment to the federal bankruptcy laws or any predecessor

to the federal bankruptcy laws;

(3) is not subject to the reporting requirements of the securities

exchange act of 1934;

(4) has 35 or fewer holders of its voting shares, if a corporation; or

partners, if a limited partnership;

(5) is not an applicant for or holder of a license under the Kansas

parimutuel racing act; and

(6) is not a vendor under the Kansas lottery act.

(b) Any such application by a corporation or limited partnership shall

be accompanied by payment of a fee set by rules and regulations from

the secretary of state. The secretary of state shall remit all moneys re-

ceived from fees pursuant to this section to the state treasurer for deposit

in accordance with the provisions of K.S.A. 75-4215, and amendments

thereto. Upon receipt of each such remittance, the state treasurer shall

deposit the entire amount in the state treasury to the credit of the infor-

mation and copy service fee fund. Such application and any accompanying

material shall also be maintained in a confidential file by the secretary of

state.

(c) All material maintained in a confidential file pursuant to this sec-

tion shall not be disclosed except: (1) In accordance with a proper judicial

order; (2) in accordance with the provisions of subsection (c) of K.S.A.

17-7514, and amendments thereto; (3) upon a proper written request of

a law enforcement officer or agency of this state or of any political sub-

division thereof; (4) upon a determination by the secretary of state that

such corporation or limited partnership no longer meets one or more of

the requirements set forth in subsection (a); or (5) when 10 years have

elapsed since such material was filed with the secretary of state.

(d) The secretary of state shall adopt such rules and regulations as

may be necessary to carry out the provisions of this act.

Sec. 67. K.S.A. 2000 Supp. 19-4707 is hereby amended to read as

follows: 19-4707. (a) Except as provided in subsection (b), no person shall

be assessed costs for enforcement and prosecution of violations of county

codes and resolutions pursuant to this code, except for witness fees and

mileage as set forth in K.S.A. 19-4726, and amendments thereto.

(b) The court shall assess as a cost in each case filed for violations of

county codes and resolutions, a $1 assessment. The judge or clerk of the

court shall remit at least monthly to the state treasurer all such assess-

ments received to the state treasurer in accordance with the provisions

of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such

remittance, the state treasurer shall deposit the entire amount of the re-

mittance in the state treasury and credit 50% to the protection from abuse

fund established pursuant to K.S.A. 74-7325, and amendments thereto,

and 50% to the crime victims assistance fund established pursuant to

K.S.A. 74-7334, and amendments thereto.

Sec. 68. K.S.A. 20-156 is hereby amended to read as follows: 20-156.

The state law librarian shall be responsible for the operation and man-

agement of the supreme court law library and shall have custody of all

books, pamphlets and documents belonging thereto. He shall cause each

book, pamphlet or document received by such library to be stamped with

the words ``Kansas supreme court law library'' and to be classified and

catalogued in accordance with approved library methods. The state law

librarian shall provide for the procurement of the acts, journals and other

publications of a legal nature of the congress and the legislatures of the

several states and territories, together with the judicial decisions of the

courts of the United States and of the several states and territories. For

such purpose, the state law librarian may exchange the laws, judicial de-

cisions and books, documents and publications of a legal nature of the

state of Kansas and agencies thereof. The law librarian may exchange, sell

or loan indefinitely, duplicate books, sets of works or other duplicate or

temporary material, and the proceeds from any such sales shall be re-

mitted at least monthly by the state law librarian to the state treasurer in

accordance with the provisions of K.S.A. 75-4215, and amendments

thereto. Upon receipt of each such remittance, the state treasurer shall

deposit the entire amount thereof in the state treasury to the credit of

the ``duplicate law book fund,'' which fund is hereby created. All expend-

itures from such fund shall be for miscellaneous law library purposes and

shall be made in accordance with appropriation acts upon warrants of the

director of accounts and reports issued pursuant to vouchers approved

by the state law librarian or by a person or persons designated by him.

Any exchange, sale or loan made hereunder shall be exempt from the

provisions of K.S.A. 75-3739 to 75-3744, both sections inclusive, and any

acts amendatory thereof and amendments thereto.

Sec. 69. K.S.A. 2000 Supp. 20-166 is hereby amended to read as

follows: 20-166. (a) There is hereby created in the state treasury the

access to justice fund. Money credited to the fund pursuant to K.S.A. 20-

362, and amendments thereto, shall be used solely for the purpose of

making grants for operating expenses to programs, including dispute res-

olution programs, which provide access to the Kansas civil justice system

for persons who would otherwise be unable to gain access to civil justice.

Such programs may provide legal assistance to pro se litigants, legal coun-

sel for civil and domestic matters or other legal or dispute resolution

services provided the recipient of the assistance or counsel meets financial

qualifications under guidelines established by the program in accordance

with grant guidelines promulgated by the supreme court of Kansas.

(b) All expenditures from the access to justice fund shall be made in

accordance with appropriations acts upon warrants of the director of ac-

counts and reports issued pursuant to vouchers approved by the chief

justice of the Kansas supreme court or by a person or persons designated

by the chief justice.

(c) The chief justice may apply for, receive and accept money from

any source for the purposes for which money in the access to justice fund

may be expended. Upon receipt of any such money each such remittance,

the chief justice shall remit the entire amount at least monthly to the state

treasurer, who in accordance with the provisions of K.S.A. 75-4215, and

amendments thereto. Upon receipt of each such remittance, the state trea-

surer shall deposit it the entire amount in the state treasury and credit it

to the credit of the access to justice fund.

(d) Grants made to programs pursuant to this section shall be based

on the number of persons to be served and such other requirements as

may be established by the Kansas supreme court in guidelines established

and promulgated to regulate grants made under authority of this section.

The guidelines may include requirements for grant applications, organi-

zational characteristics, reporting and auditing criteria and such other

standards for eligibility and accountability as are deemed advisable by the

supreme court.

Sec. 70. K.S.A. 20-1a01 is hereby amended to read as follows: 20-

1a01. The clerk of the supreme court shall remit to the state treasurer at

least monthly all moneys received by or for him such clerk from fees,

costs, other charges or penalties of the state board of law examiners from

bar discipline program administration and activities to the state treasurer

in accordance with the provisions of K.S.A. 75-4215, and amendments

thereto. Upon receipt of each such remittance, the state treasurer shall

deposit the entire amount thereof in the state treasury a special fund to

be known as to the credit of the bar discipline fee fund, which shall not

be a part of the state treasury. All expenditures from such fund shall be

made upon warrants of the director of accounts and reports issued pur-

suant to vouchers approved by the chief justice of the supreme court or

by a person or persons designated by him the chief justice. Amounts de-

posited under this section shall not be subject to any limitation imposed

by any appropriation act by the legislature. All receipts, accounts, ex-

penditures and other disbursements from the fee fund established by this

section shall be subject to post audit in accordance with article 11 of

chapter 46 of Kansas Statutes Annotated, and any amendments thereto.

Sec. 71. K.S.A. 20-1a02 is hereby amended to read as follows: 20-

1a02. The clerk of the supreme court shall remit to the state treasurer at

least monthly all moneys received by or for him such clerk from applicants

for examination for certified shorthand reporter to the state treasurer in

accordance with the provisions of K.S.A. 75-4215, and amendments

thereto. Upon receipt of any each such remittance, the state treasurer

shall deposit the entire amount thereof in the state treasury. Twenty per-

cent (20%) of each such deposit shall be credited to the state general

fund, and the balance shall be credited to the court reporters fee fund.

All expenditures from such fund shall be made in accordance with ap-

propriation acts upon warrants of the director of accounts and reports

issued pursuant to vouchers approved by the chief justice of the supreme

court or by a person or persons designated by him the chief justice. Com-

pensation of members and other actual and necessary expenses of the

state board of examiners of court reporters shall be paid from such fund

as authorized by the rules of the supreme court.

Sec. 72. K.S.A. 20-1a03 is hereby amended to read as follows: 20-

1a03. The clerk of the supreme court shall remit to the state treasurer at

least monthly all moneys received by or for him such clerk from applicants

for admission to the practice of law in Kansas, except amounts received

for immediate remittance to carry out contractual investigation and report

of bar applicants to the state treasurer in accordance with the provisions

of K.S.A. 75-4215, and amendments thereto. Upon receipt of any each

such remittance to the state treasurer, the state treasurer shall deposit

the entire amount thereof in the state treasury. Twenty percent (20%) of

each such deposit shall be credited to the state general fund and the

balance shall be credited to the bar admission fee fund. 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 vouch-

ers approved by the chief justice of the supreme court or by a person or

persons designated by him the chief justice. Compensation of members

and other actual and necessary expenses of the state board of law exam-

iners may be paid from such fund.

Sec. 73. K.S.A. 2000 Supp. 20-1a04 is hereby amended to read as

follows: 20-1a04. The clerk of the supreme court shall remit to the state

treasurer at least monthly all moneys received by or for such clerk for

docket fees, and all amounts received for other purposes than those spec-

ified in K.S.A. 20-1a01, 20-1a02 or 20-1a03, and amendments thereto,

unless by order of the supreme court such clerk is directed to make other

disposition thereof to the state treasurer in accordance with the provisions

of K.S.A. 75-4215, and amendments thereto. Upon receipt of any each

such remittance, the state treasurer shall deposit and credit the entire

amount in the state treasury to the credit of the judicial branch nonjudicial

salary initiative fund, a sum equal to 56% of the remittances of docket

fees and to the state general fund, a sum equal to 44% of the remittance

of docket fees.

Sec. 74. K.S.A. 2000 Supp. 20-1a11 is hereby amended to read as

follows: 20-1a11. (a) There is hereby created in the state treasury a judicial

branch education fund.

(b) All money credited to the fund shall be used for the purpose of

educating and training judicial branch officers and employees; for admin-

istering the training, testing and education of municipal judges as pro-

vided in K.S.A. 12-4114, and amendments thereto; for educating and

training municipal judges and municipal court support staff; and for the

planning and implementation of a family court system as provided by law.

Expenditures from the judicial branch education fund shall be made in

accordance with appropriation acts upon warrants of the director of ac-

counts and reports issued pursuant to vouchers approved by the chief

justice of the supreme court or by a person or persons designated by the

chief justice.

(c) The chief justice may apply for, receive and accept money from

any source for the purposes for which money in the judicial branch ed-

ucation fund may be expended. Upon receiving any such money, the chief

justice shall remit the entire amount at least monthly to the state treasurer

who in accordance with the provisions of K.S.A. 75-4215, and amend-

ments thereto. Upon receipt of each such remittance, the state treasurer

shall deposit such money the entire amount in the state treasury and credit

such money to the credit of the judicial branch education fund.

(d) Upon the effective date of this act, the director of accounts and

reports is directed to transfer all moneys in the municipal judge training

fund to the judicial branch education fund. Upon the effective date of

this act, all liabilities of the municipal judge training fund existing prior

to such date are hereby imposed on the judicial branch education fund.

Whenever the municipal judge training fund, or words of like effect, is

referred to or designated by any statute, contract, or other document,

such reference or designation shall be deemed to apply to the judicial

branch education fund. The municipal judge training fund is hereby abol-

ished.

Sec. 75. K.S.A. 20-213 is hereby amended to read as follows: 20-213.

The state law librarian shall remit all moneys received by or for him such

librarian from the sale of reports of the supreme court and from the sale

of court of appeals reports to the state treasurer at least monthly in ac-

cordance with the provisions of K.S.A. 75-4215, and amendments thereto.

Upon receipt of any each such remittance, the state treasurer shall deposit

the entire amount thereof in the state treasury and the same shall be

credited to the credit of the library report fee fund. All expenditures from

such fund shall be made in accordance with appropriation acts upon war-

rants of the director of accounts and reports issued pursuant to vouchers

approved by the state law librarian or by a person or persons designated

by him such state librarian. The state law librarian may make expendi-

tures from such fund for the purpose of paying the cost of transportation,

handling and storage charges incurred by him the state librarian in the

sale, delivery and storage of said such reports, including the cost of pro-

viding shelving for their storage, and for the purchase of library materials

related to the subject of law and the rebinding of same, and for the

purpose of reprinting volumes of said such reports.

Sec. 76. K.S.A. 2000 Supp. 20-350 is hereby amended to read as

follows: 20-350. (a) Except for fines and penalties authorized to be paid

to counties pursuant to K.S.A. 19-101e, and amendments thereto, and

subsection (b), and amendments thereto, all moneys received by the clerk

of the district court from the payment of fines, penalties and forfeitures

shall be remitted to the state treasurer, in the manner provided by K.S.A.

20-2801 accordance with the provisions of K.S.A. 75-4215, and amend-

ments thereto, and. Upon receipt of each such remittance, the state trea-

surer shall deposit the same entire amount in the state treasury to the

credit of the state general fund, except as provided in K.S.A. 74-7336,

and amendments thereto.

(b) Except as provided by K.S.A. 2000 Supp. 20-368, and amend-

ments thereto, all moneys received by the clerk of the district court from

the payment of bail forfeitures shall be remitted to the state treasurer at

least monthly in accordance with the provisions of K.S.A. 75-4215, and

amendments thereto. Upon receipt of each such remittance, the state trea-

surer shall deposit the same entire amount in the state treasury and shall

credit equal portions of such remittance to the indigents' defense services

fund and the state general fund.

(c) The chief judge may invest any moneys on deposit in the district

court account if the moneys are not immediately required for the pur-

poses for which they were collected or received. Such moneys may be

invested in: (1) Time deposits, open account or certificates of deposit, for

periods not to exceed six months, or savings deposits, in commercial banks

located in the county, except that amounts invested which are not insured

by the United States government shall be secured in the manner and

amounts provided by K.S.A. 9-1402, and amendments thereto; (2) United

States treasury bills or notes with maturities not to exceed six months; or

(3) savings and loan associations located in the county. No investment of

more than the amount insured by the federal deposit insurance corpo-

ration shall be made in any one savings and loan association. Interest

received from the investment of moneys pursuant to this subsection shall

be paid remitted to the state treasurer in the manner provided by K.S.A.

20-2801 accordance with the provisions of K.S.A. 75-4215, and amend-

ments thereto, and. Upon receipt of each such remittance, the state trea-

surer shall deposit the same entire amount in the state treasury to the

credit of the state general fund.

(d) Upon application of a party to an action in which such party claims

ownership of moneys held by the district court, the chief judge may invest

such moneys in the same manner as provided by subsection (c). Interest

received from the investment of moneys pursuant to this subsection shall

become the property of the person found to be the owner of the moneys.

Sec. 77. K.S.A. 2000 Supp. 20-362 is hereby amended to read as

follows: 20-362. The clerk of the district court shall remit at least monthly

all revenues received from docket fees as follows:

(a) At least monthly to the county treasurer, for deposit in the county

treasury and credit to the county general fund:

(1) A sum equal to $10 for each docket fee paid pursuant to K.S.A.

60-2001 and 60-3005, and amendments thereto, during the preceding

calendar month;

(2) a sum equal to $10 for each $36.50 or $61.50 docket fee paid

pursuant to K.S.A. 2000 Supp. 61-4001, or K.S.A. 61-2704 or 61-2709,

and amendments thereto; and

(3) a sum equal to $5 for each $19.50 docket fee paid pursuant to

K.S.A. 2000 Supp. 61-4001 or K.S.A. 61-2704, and amendments thereto,

during the preceding calendar month.

(b) At least monthly to the board of trustees of the county law library

fund, for deposit in the fund, a sum equal to the library fees paid during

the preceding calendar month for cases filed in the county.

(c) At least monthly to the county treasurer, for deposit in the county

treasury and credit to the prosecuting attorneys' training fund, a sum

equal to $1 for each docket fee paid pursuant to K.S.A. 28-172a, and

amendments thereto, during the preceding calendar month for cases filed

in the county and for each fee paid pursuant to subsection (c) of K.S.A.

28-170, and amendments thereto, during the preceding calendar month

for cases filed in the county.

(d) To the state treasurer, in accordance with the provisions of K.S.A.

75-4215, and amendments thereto, for deposit in the state treasury and

credit to the indigents' defense services fund, a sum equal to $.50 for

each docket fee paid pursuant to K.S.A. 28-172a and subsection (d) of

K.S.A. 28-170, and amendments thereto, during the preceding calendar

month.

(e) To the state treasurer, in accordance with the provisions of K.S.A.

75-4215, and amendments thereto, for deposit in the state treasury and

credit to the law enforcement training center fund, during the period

commencing July 1, 1998, and ending June 30, 2002, a sum equal to $9,

and on and after July 1, 2002, a sum equal to $8 for each docket fee paid

pursuant to K.S.A. 28-172a, and amendments thereto, during the pre-

ceding calendar month.

(f) To the state treasurer, in accordance with the provisions of K.S.A.

75-4215, and amendments thereto, for deposit in the state treasury and

distribution according to K.S.A. 20-367, and amendments thereto, a sum

equal to the balance which remains from all docket fees paid during the

preceding calendar month after deduction of the amounts specified in

subsections (a), (b), (c), (d) and (e).

Sec. 78. K.S.A. 2000 Supp. 20-367 is hereby amended to read as

follows: 20-367. Of the remittance of the balance of docket fees received

monthly by the state treasurer from clerks of the district court pursuant

to subsection (f) of K.S.A. 20-362, and amendments thereto, the state

treasurer shall deposit and credit to the access to justice fund, a sum

equal to 6.05% of the remittances of docket fees; to the juvenile detention

facilities fund, a sum equal to 3.36% of the remittances of docket fees;

to the judicial branch education fund, the state treasurer shall deposit

and credit a sum equal to 2.58% of the remittances of docket fees; to the

crime victims assistance fund, the state treasurer shall deposit and credit

a sum equal to .69% of the remittances of the docket fees; to the protec-

tion from abuse fund, the state treasurer shall deposit and credit a sum

equal to 2.07% of the remittances of the docket fees; to the judiciary

technology fund, the state treasurer shall deposit and credit a sum equal

to 5.23% of the remittances of docket fees; to the dispute resolution fund,

the state treasurer shall deposit and credit a sum equal to .43% of the

remittances of docket fees; to the Kansas juvenile delinquency prevention

trust fund, the state treasurer shall deposit and credit a sum equal to

1.53% of the remittances of docket fees; to the permanent families ac-

count in the family and children investment fund, the state treasurer shall

deposit and credit a sum equal to .25% of the remittances of docket fees;

to the trauma fund, a sum equal to 1.81% of the remittance of docket

fees; and to the judicial branch nonjudicial salary initiative fund, the state

treasurer shall deposit and credit a sum equal to 21.97% of the remittance

of docket fees. The balance remaining of the remittances of docket fees

shall be deposited and credited to the state general fund.

Sec. 79. K.S.A. 20-2801 is hereby amended to read as follows: 20-

2801. (a) At least monthly The clerk of the district court shall remit all

moneys payable to the state treasurer from fines, penalties and forfeitures

to the state treasurer, and in accordance with the provisions of K.S.A. 75-

4215, and amendments thereto. Upon receipt of each such remittance, the

state treasurer shall deposit the same entire amount in the state treasury

to the credit of the state general fund, except as provided in K.S.A. 74-

7336, and amendments thereto.

(b) In order to determine the amount of moneys available pursuant

to this section, the director of accounts and reports or the state treasurer,

whenever it is deemed necessary by either of such officers, may request

the clerk of the district court to provide such information as provided in

this section. Within 10 days of the receipt of any such request, such clerk

shall certify the amount of moneys collected pursuant to this section to

the director of accounts and reports and the state treasurer.

(c) This section shall not apply to municipal courts.

Sec. 80. K.S.A. 2000 Supp. 21-3851 is hereby amended to read as

follows: 21-3851. (a) Any person convicted of a violation of this act, may

be liable, in addition to any other criminal penalties provided by law, for

all of the following:

(1) Payment of full restitution of the amount of the excess payments;

(2) payment of interest on the amount of any excess payments at the

maximum legal rate in effect on the date the payment was made to the

person for the period from the date upon which payment was made, to

the date upon which repayment is made;

(3) payment of all reasonable expenses that have been necessarily

incurred in the enforcement of this act, including, but not limited to, the

costs of the investigation, litigation and attorney fees.

(b) All moneys recovered pursuant to subsection (a)(1) and (2), shall

be paid and deposited remitted to the state treasurer in accordance with

the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt

of each such remittance, the state treasurer shall deposit the entire amount

in the state treasury and credited to the credit of the medicaid fraud

reimbursement fund, which is hereby established in the state treasury.

Moneys in the medicaid fraud reimbursement fund shall be divided and

payments made from such fund to the federal government and affected

state agencies for the refund of moneys falsely obtained from the federal

and state governments.

(c) All moneys recovered pursuant to subsection (a)(3) shall be de-

posited remitted to the state treasurer in accordance with the provisions

of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such

remittance, the state treasurer shall deposit the entire amount in the state

treasury and credited to the credit of the medicaid fraud prosecution

revolving fund, which is hereby established in the state treasury. Moneys

in the medicaid fraud prosecution revolving fund may be appropriated to

the attorney general, or to any county or district attorney who has suc-

cessfully prosecuted an action for a violation of this act and been awarded

such costs of prosecution, in order to defray the costs of the attorney

general and any such county or district attorney in connection with their

duties provided by this act. No moneys shall be paid into the medicaid

fraud prosecution revolving fund pursuant to this section unless the at-

torney general or appropriate county or district attorney has commenced

a prosecution pursuant to this section, and the court finds in its discretion

that payment of attorney fees and investigative costs is appropriate under

all the circumstances, and the attorney general, or county or district at-

torney has proven to the court that the expenses were reasonable and

necessary to the investigation and prosecution of such case, and the court

approves such expenses as being reasonable and necessary.

Sec. 81. K.S.A. 21-4610a is hereby amended to read as follows: 21-

4610a. (a) Each person placed under the probation supervision of a court

services officer or other officer or employee of the judicial branch by a

judge of the district court under K.S.A. 21-4610, and amendments

thereto, and each person assigned to a community correctional services

program shall pay a probation or community correctional services fee. If

the person was convicted of a misdemeanor, the amount of the probation

services fee is $25 and if the person was convicted of a felony, the amount

of the probation or community correctional services fee is $50, except

that in any case the amount of the probation or community correctional

services fee specified by this section may be reduced or waived by the

judge if the person is unable to pay that amount.

(b) The probation or community correctional services fee imposed

by this section shall be charged and collected by the district court. The

clerk of the district court shall remit at least monthly all revenues received

under this section from probation or community correctional services fees

to the state treasurer in accordance with the provisions of K.S.A. 75-4215,

and amendments thereto. Upon receipt of each such remittance, the state

treasurer shall deposit the entire amount thereof in the state treasury to

the credit of the state general fund.

(c) This section shall not apply to persons placed on probation or

released on parole to reside in Kansas under the uniform act for out-of-

state parolee supervision.

Sec. 82. K.S.A. 2000 Supp. 22-4504 is hereby amended to read as

follows: 22-4504. (a) When any defendant who is entitled to have the

assistance of counsel, under the provisions of K.S.A. 22-4503, and amend-

ments thereto, claims to be financially unable to employ counsel, the

court shall require that the defendant file an affidavit containing such

information and in the form as prescribed by rules and regulations

adopted by the state board of indigents' defense services. The affidavit

filed by the defendant shall become a part of the permanent file of the

case. The court may interrogate the defendant under oath concerning the

contents of the affidavit and may direct the county or district attorney,

sheriff, marshal or other officer of the county to investigate and report

upon the financial condition of the defendant and may also require the

production of evidence upon the issue of the defendant's financial ina-

bility to employ counsel.

(b) Upon the basis of the defendant's affidavit, the defendant's state-

ments under oath, and such other competent evidence as may be brought

to the attention of the court, which shall be made part of the record in

the case, the court shall determine whether the defendant is financially

unable to employ counsel. In making such determination the court shall

consider the defendant's assets and income; the amount needed for the

payment of reasonable and necessary expenses incurred, or which must

be incurred to support the defendant and the defendant's immediate

family; the anticipated cost of effective representation by employed coun-

sel; and any property which may have been transferred or conveyed by

the defendant to any person without adequate monetary consideration

after the commission of the alleged crime. If the defendant's assets and

income are not sufficient to cover the anticipated cost of effective rep-

resentation by employed counsel when the length and complexity of the

anticipated proceedings are taken fully into account, the defendant shall

be determined indigent in full or in part and the court shall appoint an

attorney as provided in K.S.A. 22-4503, and amendments thereto. If the

court determines that the defendant is financially able to employ counsel,

the court shall so advise the defendant and shall give the defendant a

reasonable opportunity to employ an attorney of the defendant's own

choosing. All determinations by a court as to whether a defendant is

financially unable to employ counsel shall be subject to and in accordance

with rules and regulations adopted by the state board of indigents' defense

services under this act.

(c) The court shall inform the defendant for whom counsel is ap-

pointed that the amount expended by the state in providing counsel and

other defense services may be entered as a judgment against the defend-

ant if the defendant is convicted and found to be financially able to pay

the amount, and that an action to recover such amount may be brought

against any person to whom the defendant may have transferred or con-

veyed any of the defendant's property without adequate monetary con-

sideration after the date of the commission of the alleged crime. A de-

termination by the court that the defendant is financially unable to employ

counsel or pay other costs of the defendant's defense may preclude a

recovery from the defendant but may not preclude recovery from any

person to whom the defendant may have transferred or conveyed any

property without adequate monetary consideration after the date of the

commission of the alleged crime.

(d) If found to be indigent in part, the defendant shall be promptly

informed of the terms under which the defendant may be expected to

pay for counsel. Any payments pursuant to such terms shall apply upon

any judgment entered pursuant to K.S.A. 22-4513, and amendments

thereto. Payments made for services of appointed counsel provided under

K.S.A. 22-4503, and amendments thereto, shall be paid to the clerk of

the district court. The clerk of the district court shall remit all moneys

received as payment for services of appointed counsel under this section

to the state board of indigents' defense services at least monthly and the

board shall remit all moneys received under this section to the state trea-

surer at least monthly in accordance with the provisions of K.S.A. 75-

4215, and amendments thereto. Upon receipt of each such remittance,

the state treasurer shall deposit the entire amount thereof in the state

treasury to the credit of the state general fund.

(e) The determination that a defendant is indigent or partially indi-

gent shall be subject to review at any time by any court before whom the

cause is then pending.

(f) The state board of indigents' defense services shall adopt rules

and regulations in accordance with K.S.A. 77-415 et seq., and amend-

ments thereto, relating to the income, assets and anticipated costs of

representation for the purpose of determining whether a defendant is

financially able to employ counsel and the ability of a defendant to con-

tribute to the cost of the defendant's legal defense services.

Sec. 83. K.S.A. 22-4526 is hereby amended to read as follows: 22-

4526. All moneys received by the state board of indigents' defense serv-

ices under contracts entered into with one or more cities or counties

under subsection (f) of K.S.A. 22-4523, and amendments thereto, shall

be remitted by the board to the state treasurer at least monthly in ac-

cordance with the provisions of K.S.A. 75-4215, and amendments thereto.

Upon receipt of each such remittance, the state treasurer shall deposit

the entire amount thereof in the state treasury to the credit of the indi-

gents defense services fund.

Sec. 84. K.S.A. 2000 Supp. 22-4529 is hereby amended to read as

follows: 22-4529. The court may impose an administrative fee in the

amount of $35 against any defendant entitled to counsel pursuant to

K.S.A. 22-4503, and amendments thereto. If it appears to the satisfaction

of the court that payment of the administrative fee will impose manifest

hardship on the defendant, the court may waive payment of all or part of

the administrative fee. All moneys received pursuant to this section shall

be remitted to the state treasurer at least monthly, and in accordance

with the provisions of K.S.A. 75-4215, and amendments thereto. Upon

receipt of each such remittance, the state treasurer shall deposit the same

entire amount in the state treasury to the credit of the indigents' defense

services fund. If the defendant is acquitted or the case is dismissed, any

administrative fee paid pursuant to this section shall be remitted to the

defendant. The provisions of this section shall take effect on and after

July 1, 1997.

Sec. 85. K.S.A. 2000 Supp. 23-108a is hereby amended to read as

follows: 23-108a. (a) The judge or clerk of the district court shall collect

from the applicant for a marriage license a fee of $50.

(b) The clerk of the court shall remit to the state treasurer at least

monthly all fees prescribed by this section to the state treasurer in ac-

cordance with the provisions of K.S.A. 75-4215, and amendments thereto.

Upon receipt of each such remittance, the state treasurer shall deposit the

entire amount in the state treasury. Of each remittance, the state trea-

surer shall credit 46% to the protection from abuse fund, 17.92% to the

family and children trust account of the family and children investment

fund created by K.S.A. 38-1808, and amendments thereto, 20% to the

crime victims assistance fund created by K.S.A. 74-7334, and amend-

ments thereto, and the remainder to the state general fund.

Sec. 86. K.S.A. 25-4006 is hereby amended to read as follows: 25-

4006. The provisions of K.S.A. 25-206, and amendments thereto, shall

not apply to the offices of governor and lieutenant governor. When can-

didates for governor and lieutenant governor in lieu of nomination peti-

tions shall file a joint declaration of intention to become candidates for

such offices the accompanying fee shall be a sum equal to the total of one

percent (1%) 1% of one year's salary for governor and one percent (1%)

1% of one year's salary for lieutenant governor, as determined by the

secretary of state. Amounts received under this section shall be deposited

remitted to the state treasurer in accordance with the provisions of K.S.A.

75-4215, and amendments thereto. Upon receipt of each such remittance,

the state treasurer shall deposit the entire amount in the state treasury

and credited to the credit of the state general fund.

Such declaration shall be prescribed by the secretary of state, and shall

be attested before the secretary of state or a deputy secretary of state.

Sec. 87. K.S.A. 25-4119a is hereby amended to read as follows: 25-

4119a. (a) There is hereby created the Kansas commission on govern-

mental standards and conduct.

(b) On July 1, 1998, the Kansas commission on governmental stan-

dards and conduct is hereby redesignated as the governmental ethics

commission. On and after July 1, 1998, whenever the Kansas commission

on governmental standards and conduct, or words of like effect, is re-

ferred to or designated by a statute, contract or other document, such

reference or designation shall be deemed to apply to the governmental

ethics commission. Nothing in this act shall be construed as abolishing

and reestablishing the Kansas commission on governmental standards and

conduct. The commission shall consist of nine members of whom two

shall be appointed by the governor, one by the president of the senate,

one by the speaker of the house of representatives, one by the minority

leader of the house of representatives, one by the minority leader of the

senate, one by the chief justice of the supreme court, one by the attorney

general and one by the secretary of state. Nothing in this act shall be

construed as affecting the terms of members serving on July 1, 1998. Not

more than five members of the commission shall be members of the same

political party and the two members appointed by the governor shall not

be members of the same political party.

(c) The terms of all subsequently appointed members shall be two

years commencing on February 1 of the appropriate years. Vacancies

occurring on the commission shall be filled for the unexpired term by the

same appointing officer as made the original appointment. Members shall

serve until their successors are appointed and qualified. The governor

shall designate one of the members appointed by the governor to be the

chairperson of the commission. A majority vote of five members of the

commission shall be required for any action of the commission. The com-

mission may adopt rules to govern its proceedings and may provide for

such officers other than the chairperson as it may determine. The com-

mission shall meet at least once each quarter, and also shall meet on call

of its chairperson or any four members of the commission. Members of

the commission attending meetings of such commission, or attending a

subcommittee meeting thereof authorized by such commission, shall be

paid compensation, subsistence allowances, mileage and other expenses

as provided in subsections (a) to (d), inclusive, of K.S.A. 75-3223, and

amendments thereto. The commission shall appoint an executive director

who shall be in the unclassified service and receive compensation fixed

by the commission, in accordance with appropriation acts of the legisla-

ture, subject to approval by the governor. The commission may employ

such other staff and attorneys as it determines, within amounts appro-

priated to the commission, all of whom shall be in the unclassified service

and shall receive compensation fixed by the commission and not subject

to approval by the governor.

(d) The commission may adopt rules and regulations for the admin-

istration of the campaign finance act. Subject to K.S.A. 25-4178, and

amendments thereto, rules and regulations adopted by the commission

created prior to this act shall continue in force and effect and shall be

deemed to be the rules and regulations of the commission created by this

section of this enactment, until revised, amended, repealed or nullified

pursuant to law. All rules and regulations of the commission shall be

subject to the provisions of article 4 of chapter 77 of Kansas Statutes

Annotated. The commission shall continue to administer all of the acts

administered by the commission to which it is successor.

(e) The commission may provide copies of opinions, informational

materials compiled and published by the commission and public records

filed in the office of the commission to persons requesting the same and

may adopt rules and regulations fixing reasonable fees therefor. All fees

collected by the commission under the provisions of this subsection shall

be paid remitted to the state treasurer who in accordance with the pro-

visions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each

such remittance, the state treasurer shall deposit the same entire amount

in the state treasury to the credit of the governmental ethics commission

fee fund.

(f) The commission shall submit an annual report and recommen-

dations in relation to all acts administered by the commission to the gov-

ernor and to the legislative coordinating council on or before December

1 of each year. The legislative coordinating council shall transmit such

report and recommendations to the legislature.

(g) Whenever the Kansas commission on governmental standards and

conduct, or words of like effect, is referred to or designated by a statute,

contract or other document, such reference or designation shall be

deemed to apply to the governmental ethics commission.

Sec. 88. K.S.A. 25-4119f is hereby amended to read as follows: 25-

4119f. (a) In addition to any other fee required by law, every person

becoming a candidate for the following offices shall pay a fee at the time

of filing for such office in the amount prescribed by this section:

(1) Governor and lieutenant governor$480;
(2) state offices elected by statewide election, other than the governor and lieutenant governor$480;
(3) state senator, state representative, state board of education, district attorney, board of public utilities of the city of Kansas City and elected county offices$35;

and
(4) members of boards of education of unified school districts having 35,000 or more pupils regularly enrolled in the preceding school year, members of governing bodies of cities of the first class and judges of the district court in judicial districts in which judges are elected$35.

(b) The secretary of state shall remit all fees received by that office

to the state treasurer in accordance with the provisions of K.S.A. 75-4215,

and amendments thereto. County election officers receiving fees in ac-

cordance with this section shall remit such fees to the county treasurer

of the county who shall quarterly remit the same to the state treasurer.

Upon receipt of each such remittance, the state treasurer shall deposit

the entire amount in the state treasury to the credit of the governmental

ethics commission fee fund.

Sec. 89. K.S.A. 25-4145 is hereby amended to read as follows: 25-

4145. (a) Each party committee and each political committee which an-

ticipates receiving contributions or making expenditures shall appoint a

chairperson and a treasurer. The chairperson of each party committee

and each political committee which anticipates receiving contributions or

making expenditures for a candidate for state office shall make a state-

ment of organization and file it with the secretary of state not later than

10 days after establishment of such committee. The chairperson of each

political committee which anticipates receiving contributions or making

expenditures for any candidate for local office, shall make a statement of

organization and file it with the county election officer not later than 10

days after establishment of such committee.

(b) Every statement of organization shall include:

(1) The name and address of the committee. The name of the com-

mittee shall reflect the full name of the organization with which the com-

mittee is connected or affiliated or sufficiently describe such affiliation.

If the political committee is not connected or affiliated with any one

organization, the name shall reflect the trade, profession or primary in-

terest of the committee as reflected by the statement of purpose of such

organization;

(2) the names and addresses of the chairperson and treasurer of the

committee;

(3) the names and addresses of affiliated or connected organizations;

and

(4) in the case of a political committee, the full name of the organi-

zation with which the committee is connected or affiliated or, name or

description sufficiently describing the affiliation or, if the committee is

not connected or affiliated with any one organization, the trade, profes-

sion or primary interest of the political committee as reflected by the

statement of purpose of such organization.

(c) Any change in information previously reported in a statement of

organization shall be reported on a supplemental statement of organiza-

tion and filed not later than 10 days following the change.

(d) (1) Each political committee which anticipates receiving contri-

butions shall register annually with the commission on or before July 1

of each year. Each political committee registration shall be in the form

and contain such information as may be required by the commission.

(2) Each registration by a political committee anticipating the receipt

of $2,501 or more in any calendar year shall be accompanied by an annual

registration fee of $240.

(3) Each registration by a political committee anticipating the receipt

of more than $500 but less than $2,501 in any calendar year shall be

accompanied by an annual registration fee of $35.

(4) Each registration by a political committee anticipating the receipt

of $500 or less in any calendar year shall be accompanied by an annual

registration fee of $20.

(5) Any political committee which is currently registered under sub-

section (d)(3) or (d)(4) and which receives contributions in excess of

$2,500 for a calendar year, shall file, within three days of the date when

contributions exceed such amount, an amended registration form which

shall be accompanied by an additional fee for such year equal to the

difference between $240 and the amount of the fee that accompanied

the current registration.

(6) Any political committee which is currently registered under sub-

section (d)(4) and which receives contributions in excess of $500 but

which are less than $2,501, shall file, within three days of the date when

contributions exceed $500, an amended registration form which shall be

accompanied by an additional fee of $20 for such year.

(e) All such fees received by or for the commission shall be remitted

to the state treasurer at least monthly in accordance with the provisions

of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such

remittance, the state treasurer shall deposit the entire amount in the state

treasury to the credit of the governmental ethics commission fee fund.

Sec. 90. K.S.A. 25-4152 is hereby amended to read as follows: 25-

4152. (a) The commission shall send a notice by registered or certified

mail to any person failing to file any report or statement required by

K.S.A. 25-4144, 25-4145 or 25-4148, and amendments thereto, and to the

candidate appointing any treasurer failing to file any such report, within

the time period prescribed therefor. The notice shall state that the re-

quired report or statement has not been filed with either the office of

secretary of state or county election officer or both. The person failing to

file any report or statement, and the candidate appointing any such per-

son, shall be responsible for the filing of such report or statement. The

notice also shall state that such person shall have 15 days from the date

such notice is deposited in the mail to comply with the registration and

reporting requirements before a civil penalty shall be imposed for each

day that the required documents remain unfiled. If such person fails to

comply within the prescribed period, such person shall pay to the state a

civil penalty of $10 per day for each day that such report or statement

remains unfiled, except that no such civil penalty shall exceed $300. The

commission may waive, for good cause, payment of any civil penalty im-

posed by this section.

(b) Civil penalties provided for by this section shall be paid remitted

to the state treasurer, who in accordance with the provisions of K.S.A.

75-4215, and amendments thereto. Upon receipt of each such remittance,

the state treasurer shall deposit the same entire amount in the state treas-

ury to the credit of the governmental ethics commission fee fund.

(c) If a person fails to pay a civil penalty provided for by this section,

it shall be the duty of the commission to bring an action to recover such

civil penalty in the district court of the county in which such person re-

sides.

Sec. 91. K.S.A. 25-4180 is hereby amended to read as follows: 25-

4180. (a) Every person who engages in any activity promoting or opposing

the adoption or repeal of any provision of the Kansas constitution and

who accepts moneys or property for the purpose of engaging in such

activity shall make an annual report to the secretary of state of individual

contributions or contributions in kind in an aggregate amount or value in

excess of $50 received during the preceding calendar year for such pur-

poses. The report shall show the name and address of each contributor

for the activity and the amount or value of the individual contribution

made, together with a total value of all contributions received, and also

shall account for expenditures in an aggregate amount or value in excess

of $50 from such contributions by showing the amount or value expended

to each payee and the purpose of each such expenditure, together with a

total value of all expenditures made. The annual report shall be filed on

or before February 15 of each year for the preceding calendar year.

In addition to the annual report, a person engaging in an activity pro-

moting the adoption or repeal of a provision of the Kansas constitution

who accepts any contributed moneys for such activity shall make a pre-

liminary report to the secretary of state 15 days prior to each election at

which a proposed constitutional amendment is submitted. Such report

shall show the name and address of each individual contributor, together

with the amount contributed or contributed in kind in an aggregate

amount or value in excess of $50, and the expenditures in an aggregate

amount or value in excess of $50 from such contributions by showing the

amount paid to each payee and the purpose of the expenditure. A sup-

plemental report in the same format as the preliminary report shall be

filed with the secretary of state within 15 days after any election on a

constitutional proposition where contributed funds are received and ex-

pended in opposing or promoting such proposition.

Any person who engages in any activity promoting or opposing the

adoption or repeal of any provision of the Kansas constitution shall be

considered engaged in such activity upon the date the concurrent reso-

lution passes the Kansas house of representatives and senate in its final

form. Upon such date, if the person has funds in the constitutional

amendment campaign treasury, such person shall be required to report

such funds as provided by this section.

(b) (1) The commission shall send a notice by registered or certified

mail to any person failing to file any report required by subsection (a)

within the time period prescribed therefor. The notice shall state that the

required report has not been filed with the office of the secretary of state.

The notice also shall state that such person shall have 15 days from the

date such notice is deposited in the mail to comply with the reporting

requirements before a civil penalty shall be imposed for each day that

the required documents remain unfiled. If such person fails to comply

within the prescribed period, such person shall pay to the state a civil

penalty of $10 per day for each day that such report remains unfiled,

except that no such civil penalty shall exceed $300. The commission may

waive, for good cause, payment of any civil penalty imposed by this sec-

tion.

(2) Civil penalties provided for by this section shall be paid remitted

to the state treasurer, who in accordance with the provisions of K.S.A.

75-4215, and amendments thereto. Upon receipt of each such remittance,

the state treasurer shall deposit the same entire amount in the state treas-

ury to the credit of the governmental ethics commission fee fund.

(3) If a person fails to pay a civil penalty provided for by this section,

it shall be the duty of the commission to bring an action to recover such

civil penalty in the district court of the county in which such person re-

sides.

(c) The intentional failure to file any report required by subsection

(a) is a class A misdemeanor.

(d) This section shall be part of and supplemental to the campaign

finance act.

Sec. 92. K.S.A. 25-4181 is hereby amended to read as follows: 25-

4181. (a) The commission, in addition to any other penalty prescribed

under the campaign finance act, may assess a civil fine, after proper notice

and an opportunity to be heard, against any person for a violation of the

campaign finance act in an amount not to exceed $5,000 for the first

violation, $10,000 for the second violation and $15,000 for the third vio-

lation and for each subsequent violation. Whenever any civil fine or pen-

alty is proposed to be assessed against the treasurer of any candidate who

is not also the candidate, such notice shall be given to both the treasurer

and the candidate prior to the assessment of such fine or penalty. All fines

assessed and collected under this section shall be remitted promptly to

the state treasurer in accordance with the provisions of K.S.A. 75-4215,

and amendments thereto. Upon receipt thereof of each such remittance,

the state treasurer shall deposit the entire amount in the state treasury

and credit it to the credit of the governmental ethics commission fee fund.

(b) No individual who has failed to pay any civil penalty or civil fine

assessed, or failed to file any report required to be filed under the cam-

paign finance act, unless such penalty or fine has been waived or is under

appeal, shall be eligible to become a candidate for state office or local

office until such penalty or fine has been paid or such report has been

filed or both such penalty or fine has been paid and such report filed.

Sec. 93. K.S.A. 25-4305 is hereby amended to read as follows: 25-

4305. The recall of a state officer, except the secretary of state, is proposed

by filing an application with the secretary of state. The recall of the sec-

retary of state is proposed by filing an application with the lieutenant

governor, who shall perform the duties imposed on the secretary of state

in the recall of other state officers. A deposit of one hundred dollars

($100) $100 must accompany the application. This deposit will be depos-

ited remitted to the state treasurer, in accordance with the provisions of

K.S.A. 75-4215, and amendments thereto. Upon receipt of each such re-

mittance, the state treasurer shall deposit the entire amount in the state

treasury to the credit of the state general fund if a petition is not properly

filed. If a petition is properly filed the deposit shall be refunded. No

application for the recall of a state officer may be filed during the first

one hundred and twenty (120) 120 days or the last two hundred (200)

200 days of the term of office of such officer.

Sec. 94. K.S.A. 28-172b is hereby amended to read as follows: 28-

172b. (a) There is hereby established in the state treasury an indigents'

defense services fund.

(b) The clerk of the district court shall charge a fee of $.50 in each

criminal case, to be deducted from the docket fee as provided in K.S.A.

28-172a, and amendments thereto, and shall charge a fee of $.50 in each

case pursuant to the Kansas code for care of children or the Kansas ju-

venile justice code and each mental illness, drug abuse or alcoholism

treatment action as provided by subsection (d) of K.S.A. 28-170, and

amendments thereto. The clerk of the district court, at least monthly shall

pay remit all such fees received to the state treasurer, who in accordance

with the provisions of K.S.A. 75-4215, and amendments thereto. Upon

receipt of each such remittance, the state treasurer shall deposit the entire

amount in the state treasury and credit it to the credit of the indigents'

defense services fund.

(c) Moneys in the indigents' defense services fund shall be used ex-

clusively to provide counsel and related services for indigent defendants.

Expenditures from such fund shall be made in accordance with appro-

priation acts upon warrants of the director of accounts and reports issued

pursuant to vouchers approved by the chairperson of the state board of

indigents' defense services or a person designated by the chairperson.

Sec. 95. K.S.A. 31-133a is hereby amended to read as follows: 31-

133a. (a) No business shall inspect, install or service portable fire extin-

guishers or automatic fire extinguishers for commercial cooking equip-

ment without first being certified by the state fire marshal.

(b) (1) The state fire marshal shall adopt rules and regulations as

provided in K.S.A. 31-134, and amendments thereto, establishing stan-

dards for inspection, installation, servicing and testing procedures and

minimum insurance requirements of businesses inspecting, installing or

servicing portable fire extinguishers or automatic fire extinguishers for

commercial cooking equipment. The rules and regulations shall also pro-

vide for qualifications and training of any person or persons designated

by such business as the person or persons upon whose qualifications and

training the certification of the business is based and, on and after January

1, 1991, shall require submission of proof, satisfactory to the state fire

marshal, that such qualifications and training have been met.

(2) The rules and regulations shall further provide for annual certi-

fication of such businesses for a fee of not less than $25 or more than

$200 for each certification, but no fee shall be charged for any person

who is an officer or employee of the state or political or taxing subdivision

thereof when that person is acting on behalf of the state or political or

taxing subdivision. If the person or persons upon whose qualifications and

training the certification of the business is based leave such business, the

certification of that business is void.

(3) The state fire marshal shall remit all moneys received for fees

under this section to the state treasurer at least monthly in accordance

with the provisions of K.S.A. 75-4215, and amendments thereto. Upon

receipt of each such remittance, the state treasurer shall deposit the entire

amount thereof in the state treasury. The state treasurer shall credit 20%

of each such deposit to the state general fund and shall credit the re-

mainder of each such deposit to the fire marshal fee fund.

(c) Inspection or service of any portable fire extinguisher or automatic

fire extinguisher for commercial cooking equipment by any business who

is not certified by the state fire marshal as required by this section shall

constitute a deceptive act or practice under the Kansas consumer pro-

tection act and shall be subject to the remedies and penalties provided

by such act.

(d) As used in this section:

(1) ``Automatic fire extinguisher for commercial cooking equipment''

means any automatic fire extinguisher mounted directly above or in the

ventilation canopy of commercial cooking equipment.

(2) ``Business'' means any person who inspects, services or installs

portable fire extinguishers or automatic fire extinguishers for commercial

cooking equipment but does not include (A) any person or authorized

agent of the person who installs a portable fire extinguisher for protection

of the person's own property or business or (B) any individual acting as

a representative or employee of a certified business.

Sec. 96. K.S.A. 31-134 is hereby amended to read as follows: 31-134.

(a) Any rules and regulations adopted by the state fire marshal under this

act shall comply with the provisions of K.S.A. 77-415 et seq., and amend-

ments thereto, except that:

(1) In addition to the method of providing notice of the public hear-

ing prescribed by K.S.A. 77-421, and amendments thereto, such notice

shall be published three times in at least two newspapers of general cir-

culation, with the last published notice to appear not less than 15 days

prior to the public hearing.

(2) The state fire marshal shall make available for general distribution

upon request copies of any nationally recognized code adopted by ref-

erence, marked so as to indicate the provisions thereof which have been

so adopted. The state fire marshal may charge a fee for the copies in an

amount equal to the cost of the copies and their distribution. Upon col-

lection of any such fees, the state fire marshal shall remit them at least

monthly to the state treasurer such fees in accordance with the provisions

of K.S.A. 75-4215, and amendments thereto. The state treasurer shall

deposit the entire amount in the state treasury. The state treasurer shall

credit 20% of each such deposit to the state general fund and shall credit

the remainder of each such deposit to the fire marshal fee fund.

(3) In addition to the filing requirements of K.S.A. 77-416, and

amendments thereto, the state fire marshal shall publish all such rules

and regulations and make the same available for distribution to the gen-

eral public upon request, but the fire marshal shall not be required to

republish the provisions of any nationally recognized code adopted by

reference if such provisions are made available for general distribution

upon request to the fire marshal's office.

(b) The rules and regulations adopted by the state fire marshal under

authority of this act shall be known and may be cited as the Kansas fire

prevention code. Such rules and regulations shall have uniform force and

effect throughout the state. No municipality shall enact or enforce any

ordinance, resolution or rule or regulation inconsistent therewith, except

that nothing in this act shall be construed to impair the power of any

municipality to regulate the use of land by zoning or fire district regula-

tions or to prohibit or regulate the sale, handling, use or storage of

fireworks within its boundaries. Whenever a question shall arise as to

whether another state statute or an enactment of a municipality is incon-

sistent with the provisions of the fire prevention code, it shall be the duty

of the state fire marshal to make such determination after a hearing

thereon with all interested parties conducted in accordance with the pro-

visions of the Kansas administrative procedure act. Any action of the state

fire marshal pursuant to this section is subject to review in accordance

with the act for judicial review and civil enforcement of agency actions.

Sec. 97. K.S.A. 31-159 is hereby amended to read as follows: 31-159.

(a) In addition to any other penalty provided by law, the state fire marshal,

upon finding that any person has violated the provisions of the Kansas

fire prevention code, may impose a penalty not to exceed $1,000, which

shall constitute an actual and substantial economic deterrent to the vio-

lation for which the penalty is assessed.

(b) No penalty shall be imposed pursuant to this section except upon

the written order of the state fire marshal to the person who committed

the violation. The order shall state the violation, the penalty imposed and

the right to appeal to the state fire marshal. Any such person, within 30

days after service of such order, may make written request to the fire

marshal for a hearing thereon. The fire marshal shall conduct a hearing

in accordance with the provisions of the Kansas administrative procedure

act within 30 days after receipt of such request.

(c) Any person aggrieved by any order issued pursuant to this section

may appeal such order in accordance with the provisions of the act for

judicial review and civil enforcement of agency actions.

(d) All moneys received from penalties imposed pursuant to this sec-

tion shall be remitted to the state treasurer who in accordance with the

provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of

each such remittance, the state treasurer shall deposit the entire amount

in the state treasury to the credit of the state general fund.

(e) If a fire safety inspection is required to meet licensing require-

ments of a state agency, the state fire marshal, before imposing a penalty

pursuant to this section, shall make written request to the state licensing

agency to take appropriate action to require compliance with the Kansas

fire prevention code. If the state licensing agency fails to take such action

within 60 days after receipt of the state fire marshal's notice, the state

fire marshal may impose a penalty as provided by this section.

Sec. 98. K.S.A. 32-854 is hereby amended to read as follows: 32-854.

The rentals, delay rentals, bonuses, royalties and all proceeds from min-

eral leases and production shall be paid into remitted to the state treasurer

in accordance with the provisions of K.S.A. 75-4215, and amendments

thereto. Upon receipt of each such remittance, the state treasurer shall

deposit the entire amount in the state treasury and shall be credited by

the state treasurer to the credit of the wildlife fee fund or the park fee

fund, as directed by the secretary.

Sec. 99. K.S.A. 32-877 is hereby amended to read as follows: 32-877.

(a) For the purposes of paying the principal of and interest on revenue

bonds issued and sold pursuant to K.S.A. 32-876 through 32-885, and

amendments thereto, the secretary shall issue and sell hatchery stamps

which shall be affixed to all fishing licenses issued by the secretary. The

fee for each stamp issued shall be fixed by rules and regulations adopted

by the secretary in accordance with K.S.A. 32-805, and amendments

thereto.

(b) If hatchery stamps have been issued by the secretary, no person

required to purchase a fishing license shall fish within this state without

first procuring a hatchery stamp and having it in possession while fishing.

(c) All moneys collected from the issuance and sale of hatchery

stamps in excess of the amount required to pay the principal of and in-

terest and premium, if any, on the revenue bonds shall be remitted to

the state treasurer in accordance with the provisions of K.S.A. 75-4215,

and amendments thereto. Upon receipt of each such remittance, the state

treasurer shall deposit the entire amount of the remittance in the state

treasury and credit it to the credit of the wildlife fee fund.

Sec. 100. K.S.A. 32-984 is hereby amended to read as follows: 32-

984. (a) The county clerk of each county or the clerk's designated em-

ployees may issue, at the county clerk's office, any license, permit, stamp

or other issue of the department which the county clerk is authorized to

issue pursuant to law or rules and regulations of the secretary. The county

clerk shall issue such license, permit, stamp or other issue under seal.

(b) The county clerk shall pay daily to the county treasurer of the

county all moneys collected by the clerk from fees for issues of the de-

partment. The county treasurer shall pay quarterly remit all such moneys

paid to the county treasurer to the state treasurer all such moneys paid

to the county treasurer in accordance with the provisions of K.S.A. 75-

4215, and amendments thereto. All such moneys paid to Upon receipt of

each such remittance, the state treasurer shall be deposited deposit the

entire amount in the state treasury and shall be credited as provided by

K.S.A. 32-990, 32-991 and 32-993, and amendments thereto.

(c) The county clerk may collect and retain a service charge fee, as

provided by K.S.A. 32-989, and amendments thereto, for each issue of

the department issued or sold by the clerk.

Sec. 101. K.S.A. 32-991 is hereby amended to read as follows: 32-

991. (a) Unless otherwise directed by law and except for revenues pledged

to payment of revenue bonds issued in connection with specific projects,

all moneys received from state park permit fees, tolls, rentals and charges

derived from the use, lease or operation of state parks, or any portion

thereof or facility therein, including receipts from the park and recreation

motor vehicle permit and from fees for duplicate permits and other issues

of the department, all moneys derived from the sale of bonds and all

moneys from sources related thereto or allied recreational pursuits shall

be remitted at least quarterly to the state treasurer in accordance with

the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt

of each such remittance, the state treasurer shall deposit the entire

amount in the state treasury and credit it to the credit of the parks fee

fund, which is hereby created.

(b) All costs and expenses incurred by the department for the follow-

ing purposes shall be paid from the parks fee fund:

(1) Administering, implementing and enforcing the laws of this state

relating to state parks and state park facilities and their management and

use; and

(2) acquiring title to lands and rights therein or thereon, waters or

water rights, and keeping, improving and maintaining the same for the

purposes described in subsection (b)(1).

(c) No moneys derived from sources described in subsection (a) shall

be used for any purpose other than the administration of matters which

relate to state parks and which are under the control, authorities and

duties of the secretary and the department as provided by law.

(d) All expenditures from the parks fee fund shall be made in ac-

cordance with appropriations acts upon warrants of the director of ac-

counts and reports issued pursuant to vouchers approved by the secretary.

Sec. 102. K.S.A. 32-993 is hereby amended to read as follows: 32-

993. (a) All moneys received pursuant to the issuance of the migratory

waterfowl habitat stamp shall be remitted at least quarterly to the state

treasurer in accordance with the provisions of K.S.A. 75-4215, and

amendments thereto. Upon receipt of any each such remittance, the state

treasurer shall deposit the entire amount in the state treasury and credit

it to the credit of the migratory waterfowl propagation and protection

fund, which is hereby created. All expenditures from such fund shall be

in accordance with appropriations acts upon warrants of the director of

accounts and reports issued pursuant to vouchers approved by the sec-

retary.

(b) No expenditure shall be made from the migratory waterfowl prop-

agation and protection fund except for projects approved by the secretary

for the purpose of protecting and propagating migratory waterfowl, in-

cluding the acquisition, by purchase or lease, of migratory waterfowl hab-

itats in this state, and for the purpose of development, restoration, main-

tenance or preservation of waterfowl habitats.

Sec. 103. K.S.A. 32-1047 is hereby amended to read as follows: 32-

1047. The department is hereby empowered and directed to seize and

possess any wildlife which is taken, possessed, sold or transported unlaw-

fully, and any steel trap, snare or other device or equipment used in taking

or transporting wildlife unlawfully or during closed season. The depart-

ment is authorized to:

(a) Sell the seized item and remit the proceeds to the state treasurer

for in accordance with the provisions of K.S.A. 75-4215, and amendments

thereto. Upon receipt of each such remittance, the state treasurer shall

deposit the entire amount in the state treasury and credit to the credit of

the fee fund designated by the secretary,; or

(b) retain the seized item for educational, scientific or department

operational purposes.

Sec. 104. K.S.A. 32-1173 is hereby amended to read as follows: 32-

1173. All moneys received pursuant to K.S.A. 32-1101 through 32-1104,

32-1110 through 32-1113, 32-1119, 32-1125 through 32-1128, 32-1130

through 32-1137, 32-1148 through 32-1155, 32-1166, 32-1172, 32-1173

and 32-1177 through 32-1180, and amendments thereto, shall be paid

into the state treasury on or before the 10th day of each month and the

state treasurer shall credit the entire amount remitted to the state trea-

surer in accordance with the provisions of K.S.A. 75-4215, and amend-

ments thereto. Upon receipt of each such remittance, the state treasurer

shall deposit the entire amount in the state treasury to the credit of the

boating fee fund, which is hereby created, to be dedicated and used to

administer and enforce the provisions of K.S.A. 32-1101 through 32-1104,

32-1110 through 32-1113, 32-1119, 32-1125 through 32-1128, 32-1130

through 32-1137, 32-1148 through 32-1155, 32-1166, 32-1172, 32-1173

and 32-1177 through 32-1180, and amendments thereto. When sufficient

moneys are available from the fees so collected, the secretary may use

the same to construct or repair boating facilities, ramps and docks at

public waters within this state.

Sec. 105. K.S.A. 34-101 is hereby amended to read as follows: 34-

101. (a) The department of agriculture shall have supervision and regu-

lation of all warehouses operated under the Kansas public warehouse laws

relating to storage of grain.

(b) The department of agriculture shall have the authority to coop-

erate with any private entity or organization or local, state or national

organization or agency, whether voluntary or created by the law of any

state, or by national law, engaged in work or activities similar to the work

and activities of the department, and to enter into contracts and agree-

ments with such entities, organizations or agencies for carrying on a joint

campaign of development, education and publicity.

(c) No provision of this section shall be construed to prohibit or pre-

vent the secretary of agriculture or any authorized representatives from

inspecting any weighing or measuring device or otherwise performing any

of the secretary's duties pursuant to any provision of chapter 83 of Kansas

Statutes Annotated, and amendments thereto.

(d) (1) There is hereby created the warehouse fee fund in the state

treasury. The secretary shall remit all moneys received by or for the sec-

retary from fees, charges or penalties to the state treasurer at least

monthly in accordance with the provisions of K.S.A 75-4215, and amend-

ments thereto. Upon receipt of any each such remittance, the state trea-

surer shall deposit the entire amount thereof in the state treasury and

credited to the credit of the warehouse fee fund. All expenditures from

such fund shall be made in accordance with appropriation acts upon war-

rants of the director of accounts and reports issued pursuant to vouchers

approved by the secretary or by a person or persons designated by the

secretary.

(2) On or before the 10th of each month, the director of accounts

and reports shall transfer from the state general fund to the warehouse

fee fund interest earnings based on:

(A) The average daily balance of moneys in the warehouse fee fund

for the preceding month; and

(B) the net earnings rate of the pooled money investment portfolio

for the preceding month.

Sec. 106. K.S.A. 36-512 is hereby amended to read as follows: 36-

512. (a) The secretary shall remit all moneys received by the secretary

under the provisions of this act to the state treasurer at least monthly in

accordance with the provisions of K.S.A. 75-4215, and amendments

thereto. Except for moneys remitted under subsection (b), upon receipt

of any each such remittance the state treasurer shall deposit the entire

amount thereof in the state treasury and the same shall be credited to

the credit of the state general fund.

(b) The secretary shall remit all moneys received by the secretary

from fees from food service establishments located in a municipality

where food service inspection services are provided by a local agency

under contract with the secretary to the state treasurer at least monthly

in accordance with the provisions of K.S.A. 75-4215, and amendments

thereto. Upon the receipt of each such remittance, the state treasurer

shall deposit the entire amount thereof in the state treasury and the same

shall be credited to the credit of the food service inspection reimburse-

ment fund which is hereby created. On July 1, 1988, and on the first day

of each month thereafter, the director of accounts and reports shall trans-

fer from the food service inspection reimbursement fund to the state

general fund an amount equal to 20% of all money credited to such fund

during the preceding month. Expenditures from the food service inspec-

tion reimbursement fund shall be made to reimburse each local agency

under contract with the secretary for food service inspection services in

an amount equal to 80% of the money received from food service estab-

lishments in the municipality served by the local agency. All expenditures

from the food service inspection reimbursement fund shall be made in

accordance with appropriation acts upon warrants of the director of ac-

counts and reports issued pursuant to vouchers approved by the secretary

or a person designated by the secretary.

Sec. 107. K.S.A. 36-515b is hereby amended to read as follows: 36-

515b. (a) Any person who violates any provision of the food service and

lodging act or any rule and regulation adopted pursuant thereto, in ad-

dition to any other penalty provided by law, may incur a civil penalty

imposed under subsection (b) in an amount not to exceed $500 for each

violation and, in the case of a continuing violation, every day such violation

continues shall be deemed a separate violation.

(b) The director of the division of health, upon a finding that a person

has violated any provision of the food service and lodging act or any rule

and regulation adopted pursuant thereto, may impose a civil penalty

within the limits provided in this section upon such person, which civil

penalty shall be in an amount to constitute an actual and substantial ec-

onomic deterrent to the violation for which the civil penalty is assessed.

(c) No civil penalty shall be imposed pursuant to this section except

upon the written order of the director of the division of health to the

person who committed the violation. Such order shall state the violation,

the penalty to be imposed and the right of such person to appeal to the

secretary. Any such person, within 20 days after notification, may make

written request to the secretary for a hearing in accordance with the

provisions of the Kansas administrative procedure act. The secretary shall

affirm, reverse or modify the order of the director and shall specify the

reasons therefor.

(d) Any person aggrieved by an order of the secretary made under

this section may appeal such order to the district court in the manner

provided by the act for judicial review and civil enforcement of agency

actions.

(e) Any penalty recovered pursuant to the provisions of this section

shall be remitted to the state treasurer, deposited in accordance with the

provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of

each such remittance, the state treasurer shall deposit the entire amount

in the state treasury and credited to the credit of the state general fund.

(f) This section shall be a part of and supplemental to the food service

and lodging act.

Sec. 108. K.S.A. 38-2009 is hereby amended to read as follows: 38-

2009. (a) There is hereby established in the state treasury the Kansas

insurance coverage for children fund.

(b) The secretary is authorized to apply for and receive grants, gifts

and donations from nonfederal sources for the purposes set out under

this act.

(c) The secretary shall remit all moneys received under subsection

(b) to the state treasurer who shall in accordance with the provisions of

K.S.A. 75-4215, and amendments thereto. Upon receipt of each such re-

mittance, the state treasurer shall deposit such moneys the entire amount

in the state treasury to the credit of the Kansas insurance coverage for

children fund.

(d) On or before the 10th day of each month, the director of accounts

and reports shall transfer from the state general fund to the Kansas in-

surance coverage for children fund interest earnings based on: (1) The

average daily balance of moneys in such fund for the preceding month;

and (2) the net earnings rate for the pooled money investment portfolio

for the preceding month.

(e) All expenditures from the Kansas insurance coverage for children

fund shall be made in accordance with appropriation acts upon warrants

of the director of accounts and reports issued pursuant to vouchers ap-

proved by the secretary or the secretary's designee for the purposes of

this act.

Sec. 109. K.S.A. 39-757 is hereby amended to read as follows: 39-

757. (a) The secretary of social and rehabilitation services shall remit all

moneys received by or for the secretary from the enforcement of rights

assigned to the secretary under subsection (b) of K.S.A. 39-709, and

amendments thereto, to the state treasurer at least monthly in accordance

with the provisions of K.S.A. 75-4215, and amendments thereto. Upon

receipt of each such remittance, the state treasurer shall deposit the entire

amount thereof in the state treasury as follows: (1) Amounts to be dis-

tributed pursuant to part D of title IV of the federal social security act

(42 U.S.C. § 651 et seq.), or acts amendatory thereof or supplemental

thereto, to the state shall be credited to the title IV D aid to families with

dependent children fee fund, and all expenditures from such fund shall

be made in accordance with appropriation acts upon warrants of the di-

rector of accounts and reports issued pursuant to vouchers approved by

the secretary or by a person or persons designated by the secretary; and

(2) amounts to be distributed pursuant to part D of title IV of the federal

social security act (42 U.S.C. § 651 et seq.), or acts amendatory thereof

or supplemental thereto, to applicants for or recipients of aid under sub-

section (b) of K.S.A. 39-709, and amendments thereto, shall be credited

to the title IV D aid to families with dependent children claims fund, and

all expenditures from such fund shall be made upon warrants of the di-

rector of accounts and reports issued pursuant to vouchers approved by

the secretary or by a person or persons designated by the secretary.

(b) The secretary of social and rehabilitation services shall remit all

moneys received by or for the secretary under K.S.A. 39-756, and amend-

ments thereto, to the state treasurer at least monthly in accordance with

the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt

of each such remittance, the state treasurer shall deposit the entire

amount thereof in the state treasury as follows: (1) Amounts to be dis-

tributed pursuant to part D of title IV of the federal social security act

(42 U.S.C. § 651 et seq.), or acts amendatory thereof or supplemental

thereto, to the state shall be credited to the title IV D fee fund, and all

expenditures from such fund shall be made in accordance with appro-

priate acts upon warrants of the director of accounts and reports issued

pursuant to vouchers approved by the secretary or by a person or persons

designated by the secretary; and (2) amounts to be distributed pursuant

to part D of title IV of the federal social security act (42 U.S.C. § 651 et

seq.), or acts amendatory thereof or supplemental thereto, to persons who

under K.S.A. 39-756, and amendments thereto, are eligible for services

specified in such section shall be credited to the title IV D claims fund,

and all expenditures from such fund shall be made upon warrants of the

director of accounts and reports issued pursuant to vouchers approved

by the secretary or by a person or persons designated by the secretary.

(c) Money shall be deposited in the funds established by subsections

(a) and (b) of this section and shall be distributed from such funds in

accordance with the provisions of part D of title IV of the federal social

security act (42 U.S.C. § 651 et seq.), or acts amendatory thereof or sup-

plemental thereto.

Sec. 110. K.S.A. 39-784 is hereby amended to read as follows: 39-

784. (a) The secretary of social and rehabilitation services is hereby au-

thorized to fix, charge and collect reasonable fees for providing home

care services to recipients served under the medicaid home and com-

munity based services program.

(b) All moneys received for fees collected pursuant to subsection (a)

shall be remitted to the state treasurer at least monthly in accordance

with the provisions of K.S.A. 75-4215, and amendments thereto. Upon

receipt of each such remittance, the state treasurer shall deposit the entire

amount thereof in the state treasury and credit such amount to the credit

of the SRS temporary deposit fund.

Sec. 111. K.S.A. 39-936 is hereby amended to read as follows: 39-

936. (a) The presence of each resident in an adult care home shall be

covered by a statement provided at the time of admission, or prior

thereto, setting forth the general responsibilities and services and daily

or monthly charges for such responsibilities and services. Each resident

shall be provided with a copy of such statement, with a copy going to any

individual responsible for payment of such services and the adult care

home shall keep a copy of such statement in the resident's file. No such

statement shall be construed to relieve any adult care home of any re-

quirement or obligation imposed upon it by law or by any requirement,

standard or rule and regulation adopted pursuant thereto.

(b) A qualified person or persons shall be in attendance at all times

upon residents receiving accommodation, board, care, training or treat-

ment in adult care homes. The licensing agency may establish necessary

standards and rules and regulations prescribing the number, qualifica-

tions, training, standards of conduct and integrity for such qualified per-

son or persons attendant upon the residents.

(c) (1) The licensing agency shall require unlicensed employees of

an adult care home, except an adult care home licensed for the provision

of services to the mentally retarded which has been granted an exception

by the licensing agency upon a finding by the licensing agency that an

appropriate training program for unlicensed employees is in place for

such adult care home, employed on and after the effective date of this

act who provide direct, individual care to residents and who do not ad-

minister medications to residents and who have not completed a course

of education and training relating to resident care and treatment approved

by the licensing agency or are not participating in such a course on the

effective date of this act to complete successfully 40 hours of training in

basic resident care skills. Any unlicensed person who has not completed

40 hours of training relating to resident care and treatment approved by

the licensing agency shall not provide direct, individual care to residents.

The 40 hours of training shall be supervised by a registered professional

nurse and the content and administration thereof shall comply with rules

and regulations adopted by the licensing agency. The 40 hours of training

may be prepared and administered by an adult care home or by any other

qualified person and may be conducted on the premises of the adult care

home. The 40 hours of training required in this section shall be a part of

any course of education and training required by the licensing agency

under subsection (c)(2).

(2) The licensing agency may require unlicensed employees of an

adult care home, except an adult care home licensed for the provision of

services to the mentally retarded which has been granted an exception

by the licensing agency upon a finding by the licensing agency that an

appropriate training program for unlicensed employees is in place for

such adult care home, who provide direct, individual care to residents

and who do not administer medications to residents after 90 days of em-

ployment to successfully complete an approved course of instruction and

an examination relating to resident care and treatment as a condition to

continued employment by an adult care home. A course of instruction

may be prepared and administered by any adult care home or by any

other qualified person. A course of instruction prepared and administered

by an adult care home may be conducted on the premises of the adult

care home which prepared and which will administer the course of in-

struction. The licensing agency shall not require unlicensed employees of

an adult care home who provide direct, individual care to residents and

who do not administer medications to residents to enroll in any particular

approved course of instruction as a condition to the taking of an exami-

nation, but the licensing agency shall prepare guidelines for the prepa-

ration and administration of courses of instruction and shall approve or

disapprove courses of instruction. Unlicensed employees of adult care

homes who provide direct, individual care to residents and who do not

administer medications to residents may enroll in any approved course of

instruction and upon completion of the approved course of instruction

shall be eligible to take an examination. The examination shall be pre-

scribed by the licensing agency, shall be reasonably related to the duties

performed by unlicensed employees of adult care homes who provide

direct, individual care to residents and who do not administer medications

to residents and shall be the same examination given by the licensing

agency to all unlicensed employees of adult care homes who provide

direct, individual care to residents and who do not administer medica-

tions.

(3) The licensing agency shall fix, charge and collect a fee to cover

all or any part of the costs of the licensing agency under this subsection

(c). The fee shall be fixed by rules and regulations of the licensing agency.

The fee shall be deposited remitted to the state treasurer in accordance

with the provisions of K.S.A. 75-4215, and amendments thereto. Upon

receipt of each such remittance, the state treasurer shall deposit the entire

amount in the state treasury and credited to the credit of the state general

fund.

(4) The licensing agency shall establish a state registry containing in-

formation about unlicensed employees of adult care homes who provide

direct, individual care to residents and who do not administer medications

in compliance with the requirements pursuant to PL 100-203, Subtitle

C, as amended November 5, 1990.

(5) No adult care home shall use an individual as an unlicensed em-

ployee of the adult care home who provides direct, individual care to

residents and who does not administer medications unless the facility has

inquired of the state registry as to information contained in the registry

concerning the individual.

(6) Beginning July 1, 1993, the adult care home must require any

unlicensed employee of the adult care home who provides direct, indi-

vidual care to residents and who does not administer medications and

who since passing the examination required under paragraph (2) of this

subsection has had a continuous period of 24 consecutive months during

none of which the unlicensed employee provided direct, individual care

to residents to complete an approved refresher course. The licensing

agency shall prepare guidelines for the preparation and administration of

refresher courses and shall approve or disapprove courses.

(d) Any person who has been employed as an unlicensed employee

of an adult care home in another state may be so employed in this state

without an examination if the secretary of health and environment deter-

mines that such other state requires training or examination, or both, for

such employees at least equal to that required by this state.

(e) All medical care and treatment shall be given under the direction

of a physician authorized to practice under the laws of this state and shall

be provided promptly as needed.

(f) No adult care home shall require as a condition of admission to

or as a condition to continued residence in the adult care home that a

person change from a supplier of medication needs of their choice to a

supplier of medication selected by the adult care home. Nothing in this

subsection (f) shall be construed to abrogate or affect any agreements

entered into prior to the effective date of this act between the adult care

home and any person seeking admission to or resident of the adult care

home.

(g) Except in emergencies as defined by rules and regulations of the

licensing agency and except as otherwise authorized under federal law,

no resident may be transferred from or discharged from an adult care

home involuntarily unless the resident or legal guardian of the resident

has been notified in writing at least 30 days in advance of a transfer or

discharge of the resident.

(h) No resident who relies in good faith upon spiritual means or

prayer for healing shall, if such resident objects thereto, be required to

undergo medical care or treatment.

Sec. 112. K.S.A. 39-1210 is hereby amended to read as follows: 39-

1210. (a) In the event that any organization or institution designated in

K.S.A. 39-1208, and amendments thereto, is a party to any contract au-

thorized by K.S.A. 8-147, and amendments thereto, for the manufacture

and distribution of motor-vehicle number plates, registration decals, pro-

rate license plates and prorate backing plates, the secretary of corrections

shall transfer all surplus equipment, supplies and materials used in the

manufacture or distribution of said plates or decals to the secretary of

revenue who may furnish such equipment pursuant to long-term lease

agreements to any such organization or institution and may sell such sup-

plies and materials to any such organization or institution if such contract

provides therefor. Any sale of such supplies and materials shall be at a

price agreed upon by the secretary of revenue and such institution or

organization in the contract for sale, and such contract shall not be subject

to the provisions of K.S.A. 75-3739, and amendments thereto.

(b) All moneys received by the secretary of revenue pursuant to this

section shall be remitted to the state treasurer, who shall in accordance

with the provisions of K.S.A. 75-4215, and amendments thereto. Upon

receipt of each such remittance, the state treasurer shall deposit the same

entire amount in the state treasury to the credit of the correctional in-

dustries account.

Sec. 113. K.S.A. 40-112 is hereby amended to read as follows: 40-

112. (a) For the purpose of maintaining the insurance department and

the payment of expenses incident thereto, there is hereby established the

insurance department service regulation fund in the state treasury which

shall be administered by the commissioner of insurance. All expenditures

from the insurance department service regulation fund shall be made in

accordance with appropriation acts upon warrants of the director of ac-

counts and reports issued pursuant to vouchers approved by the com-

missioner of insurance or by a person or persons designated by the com-

missioner.

(b) On and after the effective date of this act, all fees received by the

commissioner of insurance pursuant to any statute and 1% of taxes re-

ceived pursuant to K.S.A. 40-252, and amendments thereto, shall be re-

mitted to the state treasurer for deposit in accordance with the provisions

of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such

remittance, the state treasurer shall deposit the entire amount in the state

treasury and credited to the credit of the insurance department service

regulation fund.

(c) Except as otherwise provided by this section, the commissioner

of insurance shall make an annual assessment on each group of affiliated

insurers whose certificates of authority to do business in this state are in

good standing at the time of the assessment. The total amount of all such

assessments for a fiscal year shall be equal to the amount sufficient which,

when combined with the total amount to be credited to the insurance

department service regulation fund pursuant to subsection (b) is equal to

the amount approved by the legislature to fund the insurance company

regulation program. With respect to each group of affiliated insurers, such

assessment shall be in proportion to the amount of total assets of the

group of affiliated insurers as reported to the commissioner of insurance

pursuant to K.S.A. 40-225, and amendments thereto, for the immediately

preceding calendar year, shall not be less than $500 and shall not be more

than the amount equal to .0000015 of the amount of total assets of the

group of affiliated insurers or $25,000, whichever is less. The total as-

sessment for any fiscal year shall not increase by any amount greater than

15% of the total budget approved by the legislature to fund the insurance

company regulation program for the fiscal year immediately preceding

the fiscal year for which the assessment is made. In the event the total

amount of the assessment would be less than the aggregate amount re-

sulting by assessing the $500 minimum on each insurer, the commissioner

may establish a lower minimum to be assessed equally on each insurer.

(d) If, by the laws of any state other than Kansas or by the retaliatory

laws of any state other than Kansas, any insurer domiciled in Kansas shall

be required to pay any fee or tax in such other state of licensure, and the

fee or tax is due and payable either because the insurance department

service regulation fee imposed by this section on insurers licensed in

Kansas and organized or domiciled in such other state is greater than the

comparable fee or tax assessed in such other state, or such other state has

no comparable fee or tax but requires payment on a retaliatory basis, then

to the extent such fee or tax amounts are legally due and are paid in such

other state, any insurer domiciled in Kansas may claim a dollar-for-dollar

credit for such fees paid against insurer's annual premium taxes due the

state of Kansas under K.S.A. 40-252, and amendments thereto, or privi-

lege fee due the state of Kansas under K.S.A. 40-3213, and amendments

thereto, but such credit shall only be calculated on the amount which

would not have been required to be paid in such other state of licensure

in the absence of the existence of the insurance department service reg-

ulation fee imposed by this section, and in no event shall the credit per-

mitted by this section exceed 90% of the insurer's annual premium tax

or privilege fee due the state of Kansas. The insurance commissioner shall

prescribe the forms for reporting such credits.

(e) Assessments payable under this section shall be past due if not

paid to the insurance department within 45 days of the billing date of

such assessment. A penalty equal to 10% of the amount assessed shall be

imposed upon any past due payment and the total amount of the assess-

ment and penalty shall bear interest at the rate of 1.5% per month or any

portion thereof.

(f) When there exists in the insurance department service regulation

fund a deficiency which would render such fund temporarily insufficient

during any fiscal year to meet the insurance department's funding

requirements, the commissioner of insurance shall certify the amount of

the insufficiency. Upon receipt of any such certification, the director of

accounts and reports shall transfer an amount of moneys equal to the

amount so certified from the state general fund to the insurance depart-

ment service regulation fund. On June 30 of any fiscal year during which

an amount or amounts are certified and transferred under this subsection,

the director of accounts and reports shall provide for the repayment of

the amounts so transferred and shall transfer the amount equal to the

total of all such amounts transferred during the fiscal year from the in-

surance department service regulation fund to the state general fund.

(g) Any unexpended balance in the insurance department service reg-

ulation fund at the close of a fiscal year shall remain credited to the

insurance department service regulation fund for use in the succeeding

fiscal year and shall be used to reduce future assessments or to accom-

modate cash flow demands on the fund.

(h) The commissioner of insurance shall exempt the assessment of

any insurer which, as of December 31 of the calendar year preceding the

assessment, has a surplus of less than two times the minimum amount of

surplus required for a certificate of authority on and after May 1, 1994,

and which is subject to the premium tax or privilege fee liability imposed

on insurers organized under the laws of this state. The commissioner of

insurance may also exempt or defer, in whole or in part, the assessment

of any other insurer if, in the opinion of the commissioner of insurance,

immediate payment of the total assessment would be detrimental to the

solvency of the insurer.

(i) As used in this section:

(1) ``Affiliates'' or ``affiliated'' has the meaning ascribed by K.S.A. 40-

3302, and amendments thereto;

(2) ``group'' or ``group of affiliated insurers'' means the affiliated in-

surers of a group and also includes an individual, unaffiliated insurer; and

(3) ``insurer'' means any insurance company, as defined by K.S.A. 40-

201, and amendments thereto, any fraternal benefit society, as defined

by K.S.A. 40-738, and amendments thereto, any reciprocal or interinsur-

ance exchange under K.S.A. 40-1601 through 40-1614, and amendments

thereto, any mutual insurance company organized to provide health care

provider liability insurance under K.S.A. 40-12a01 through 40-12a09, and

amendments thereto, any nonprofit dental service corporation under

K.S.A. 40-19a01 through 40-19a14, and amendments thereto, any non-

profit medical and hospital service corporation under K.S.A. 40-19c01

through 40-19c11, and amendments thereto, any health maintenance or-

ganization, as defined by K.S.A. 40-3202, and amendments thereto, or

any captive insurance company, as defined by K.S.A. 40-4301, and

amendments thereto, which is authorized to do business in Kansas.

Sec. 114. K.S.A. 40-223 is hereby amended to read as follows: 40-

223. Any person who makes any examination under the provisions of this

act, except as provided in K.S.A. 40-110 and 40-253, and amendments

thereto, may receive, as full compensation for such person's services, on

a per diem basis an amount fixed by the commissioner, which shall not

exceed the amount recommended by the national association of insurance

commissioners, for such time necessarily and actually occupied in going

to and returning from the place of such examination and for such time

the examiner is necessarily and actually engaged in making such exami-

nation including any day within the regular workweek when the examiner

would have been so engaged had the company or society been open for

business, together with such necessary and actual expenses for traveling

and subsistence as the examiner shall incur because of the performance

of such services. For the purposes of this act, ``necessary and actual ex-

penses'' shall be limited, whether for travel within the state or travel

outside the state, to those limitations expressed in K.S.A. 75-3207, and

amendments thereto, which pertain to official travel outside the state.

The daily charge shall be calculated by dividing the amount the examiner

is authorized by the commissioner of insurance to charge per week by

the number of days in the regular workweek of the company or society

being examined.

All of such compensation, expenses, the employer's share of the federal

insurance contributions act taxes, the employer's contribution to the Kan-

sas public employees retirement system as provided in K.S.A. 74-4920,

and amendments thereto, the self-insurance assessment for the work-

men's compensation act as provided in K.S.A. 44-576, and amendments

thereto, the employer's cost of the state health care benefits program

under K.S.A. 75-6507, and amendments thereto, a pro rata amount de-

termined by the commissioner to provide vacation and sick leave for the

examiner not to exceed the number of days allowed state officers and

employees in the classified service pursuant to regulations promulgated

in accordance with the Kansas civil service act, all outside consulting and

data processing fees necessary to perform any examination, and a pro rata

amount determined by the commissioner not to exceed an annual aggre-

gate of $18,000 to fund the purchase, maintenance and enhancement of

examination equipment and computer software shall be paid to the com-

missioner of insurance by the insurance company or society so examined,

on demand of the commissioner. The amount paid for all outside con-

sulting and data processing fees necessary to perform any examination,

and the pro rata amount to fund the purchase of examination equipment

and computer software shall not collectively total more than $25,000 at

any one company examination including examination of its subsidiaries or

combination thereof. Such demand shall be accompanied by the sworn

statement of the person making such examination, setting forth in sepa-

rate items the number of days necessarily and actually occupied in going

to and returning from the place of such examination, the number of days

the examiners were necessarily and actually engaged in making such ex-

amination including those days within the regular workweek while the

examination was in progress and the company or society had closed for

business, and the necessary and actual expenses for traveling and subsis-

tence, incurred in and on account of such services. A duplicate of every

such sworn statement shall be kept on file in the office of the commis-

sioner of insurance. All moneys so paid to the commissioner of insurance

shall be remitted to the state treasurer and in accordance with the pro-

visions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each

such remittance, the state treasurer shall deposit the entire amount in the

state treasury to the credit of the insurance company examination fund.

The state treasurer shall issue duplicate receipts therefor, one to be de-

livered to the commissioner of insurance and the other to be filed with

the director of accounts and reports.

Sec. 115. K.S.A. 40-1706 is hereby amended to read as follows: 40-

1706. (a) On or before April 1 of each year, every firefighters relief as-

sociation which holds funds received under the firefighters relief act shall

submit to the commissioner of insurance a verified account showing in

full the receipts and disbursements and general condition of such funds

for the year ending on the preceding December 31. If such account or

other information shows such funds are not being expended for the pur-

poses authorized by the firefighters relief act, the commissioner of insur-

ance shall notify the county attorney of the county in which any such

firefighters relief association is located and the county attorney shall in-

stitute proceedings to recover for the use of the firefighters relief asso-

ciation all moneys expended for purposes not in accordance with the

provisions of the firefighters relief act. The commissioner of insurance

shall hold any funds of such firefighters relief association until the com-

missioner is notified by the district or county attorney that such condition

has been corrected.

(b) (1) All moneys received by the commissioner of insurance from

the tax imposed by K.S.A. 40-1703, and amendments thereto, shall be

remitted to the state treasurer in accordance with the provisions of K.S.A.

75-4215, and amendments thereto. Upon receipt of each such remittance,

the state treasurer shall deposit the entire amount thereof in the state

treasury and shall be credited to the credit of the state firefighters relief

fund which is hereby created in the state treasury.

(2) The state firefighters relief fund shall be administered by the com-

missioner of insurance. An amount equal to not more than the amount

authorized for expenditure during the current fiscal year by appropria-

tions enacted by the legislature may be set aside in the state firefighters

relief fund and expended by the commissioner of insurance for the ad-

ministrative expenses of the department of insurance under the firefight-

ers relief act, subject to the provisions of appropriations acts.

(c) Prior to August 1, 1987, and each August 1 thereafter, except as

provided in subsections (b) and (d), of the total amount of moneys cred-

ited to the state firefighters relief fund as of July 1 of the same year the

amounts determined as prescribed in subsections (c)(1) through (c)(6)

shall be paid as provided therein.

(1) An amount equal to 3% of such total amount shall be paid by the

commissioner of insurance to the treasurer of the Kansas state firefighters

association, inc. for fire prevention and fire extinguishment education and

study.

(2) An amount equal to 5% of such total amount shall be paid by the

commissioner of insurance to the Kansas state firefighters association, inc.

which shall be set aside as a death benefit fund to provide such benefits

as determined by the association in accordance with the constitution and

bylaws thereof, except the amount paid under this subsection (c)(2) shall

not be more than the lesser of $100,000 or the result obtained by sub-

tracting the balance in the death benefit fund of the association on July

1 from $100,000.

(3) The amount of $1,000 shall be paid by the commissioner of in-

surance to each firefighters relief association.

(4) The remaining amount of the moneys credited to the state fire-

fighters relief fund, after the amounts are reserved or paid for the pur-

poses authorized by subsections (b)(2), (c)(1), (c)(2) and (c)(3), shall be

paid by the commissioner of insurance to firefighters relief associations

so that the amount received by each firefighters relief association bears

the same proportion to the total amount to be paid as the amount such

firefighters relief association received from the amounts collected from

the tax imposed by K.S.A. 40-1703, and amendments thereto, for all of

calendar year 1983, bears to the total amount paid to all firefighters relief

associations from the taxes collected for all of calendar year 1983, subject

to adjustments made to correct for errors in the payments distributed and

as otherwise provided pursuant to this subsection (c)(4), adjustments

made pursuant to subsection (c)(5) for firefighters relief associations that

did not receive a payment from taxes paid for all of calendar year 1983

and adjustments pursuant to subsection (c)(6) for redeterminations based

upon changed circumstances. The commissioner of insurance may make

adjustments in the amounts of payments for the current year made under

this subsection (c)(4) for errors in the payments distributed for the prior

year, except that adjustments may be made in the payments to be dis-

tributed by August 1, 1987, for any errors in the payments distributed

during the period from July 1, 1984, through June 30, 1987, and an ad-

justment shall be made in the payment to be distributed by August 1,

1987, for each firefighters relief association which was in existence for

only part of calendar year 1983 and which received a payment for calendar

year 1983 based on the taxes received for only part of calendar year 1983,

to reflect the total of the payments that would most probably have been

received by such firefighters relief association during the period from

August 1, 1984, through June 30, 1987, if such firefighters relief associ-

ation had been in existence for all of calendar year 1983, reduced by the

payments actually received by such firefighters relief association during

the period from August 1, 1984, through June 30, 1987. For purposes of

all payments under subsection (c)(4) after the adjusted payment distrib-

uted by August 1, 1987, such firefighters relief association shall be con-

sidered to have received for calendar year 1983, the amount it most prob-

ably would have received if it had been in existence for all of calendar

year 1983, which shall be the amount having the same proportional re-

lationship to 365 days as the amount actually received for calendar year

1983 has to the number of days that such firefighters relief association

was in existence during calendar year 1983, subject to adjustments pur-

suant to subsection (c)(6) for redeterminations based upon changed cir-

cumstances.

(5) Whenever a firefighters relief association is to receive a payment

under subsection (c)(4) but did not receive a payment from any of the

taxes collected for calendar year 1983, the commissioner of insurance

shall determine for the nonreceiving association, from such information

as is made available to the commissioner by the nonreceiving association,

the amount the nonreceiving association would most probably have re-

ceived if it had actually received such a payment from the taxes collected

for all of calendar year 1983, with appropriate adjustments based on pay-

ments to firefighters relief associations of fire departments providing fire

protection services within geographic areas having similar populations and

assessed tangible property valuation as the geographic area provided fire

protection services by the fire department of each such nonreceiving as-

sociation. The commissioner shall make such determination as follows:

(A) One-half of the amount due shall be determined based upon the

population figure provided by the association pursuant to administrative

rules and regulations adopted by the commissioner. The determination

of this 1/2 of the amount due shall be made in accordance with the fol-

lowing formula:

(i) An association which received a payment from the taxes collected

for all of calendar year 1983 and which has a population similar to that

of the nonreceiving association shall be ascertained;

(ii) the payment the comparable association received from taxes col-

lected for all of calendar year 1983 shall be divided by two;

(iii) the population of the area served by the nonreceiving association

shall be divided by the population of the area served by the association

to which the nonreceiving association is being compared, to produce an

adjustment factor reflecting the variance in population size; and

(iv) the amount received from taxes collected for all of calendar year

1983 by the association with the comparable population shall be multi-

plied by the population adjustment factor obtained in paragraph (iii) of

this subsection (c)(5)(A).

(B) The remaining 1/2 of the amount due shall be determined based

upon the assessed tangible property valuation figure provided by the non-

receiving association pursuant to administrative rules and regulations

adopted by the commissioner. The determination of the remaining 1/2 of

the amount due shall be made in accordance with the following formula:

(i) An association which received a payment from the taxes collected

for all of calendar year 1983 and which has an assessed tangible property

valuation as of November 1, 1989, similar to that of the nonreceiving

association shall be ascertained;

(ii) the payment the comparable association received from taxes col-

lected for all of calendar year 1983 shall be divided by two;

(iii) the assessed tangible property valuation of the area served by the

nonreceiving association shall be divided by the assessed tangible property

valuation of the area served by the association to which the nonreceiving

association is being compared, to produce an adjustment factor reflecting

the variance in assessed tangible property valuation; and

(iv) the amount received from taxes collected for all of calendar year

1983 by the association with the comparable assessed tangible property

valuation shall be multiplied by the valuation adjustment factor obtained

in paragraph (iii) of this subsection (c)(5)(B).

(C) The amount obtained in paragraph (iv) of subsection (c)(5)(A)

shall be added to the amount obtained in paragraph (iv) of subsection

(c)(5)(B) to determine the total amount the nonreceiving association most

probably would have received if it had actually received a payment from

the taxes collected for all of calendar year 1983. The amount a nonre-

ceiving association most probably would have received if it had actually

received a payment from taxes collected for all of calendar year 1983 shall

be divided by the total amount paid to all firefighters relief associations

from the taxes collected for all of calendar year 1983 to determine the

proportionate amount due the nonreceiving association for the current

and succeeding years and thereafter such association shall not be consid-

ered to be a nonreceiving association. The commissioner of insurance

shall include the amount so determined within the computations pre-

scribed by subsection (c)(4) for payments thereunder.

(6) One or more firefighters relief associations may apply, prior to

October 1 of any year, to the commissioner of insurance for a redeter-

mination of the proportionate amounts payable to all firefighters relief

associations under subsection (c)(4) and, upon receipt of such application,

the commissioner of insurance shall hold one joint hearing in accordance

with the provisions of the Kansas administrative procedure act prior to

December 1 of such year, at which all applicants shall be heard and may

present information. The commissioner of insurance may redetermine

such proportionate amounts based upon such information as is presented

to or otherwise made available by the applicants to the commissioner and

may make a finding of changed circumstances. However, increases in the

assessed tangible property valuation resulting from a statewide reappraisal

conducted pursuant to K.S.A. 79-1476 et seq., and amendments thereto,

shall not constitute a changed circumstance. Upon making such finding,

the commissioner of insurance may include such redetermination within

the computations prescribed by subsection (c)(4) for payments in sub-

sequent years. Any increase or reduction in the amounts to be distributed

as a result of a finding of changed circumstances by the commissioner

shall be proportionately distributed among all firefighters relief associa-

tions. An application for redetermination shall not be made by any fire-

fighters relief association more often than once every three years, but this

restriction shall not apply with respect to applications for redetermination

submitted in calendar year 1989 that were based in whole or in part on

an increase in the assessed tangible property valuation resulting from

statewide reappraisal.

(d) Except as otherwise provided in this section, whenever any fire-

fighters relief association fails to qualify for funds, as provided in the

firefighters relief act, for a period of two consecutive years, the funds on

deposit with such association shall be returned by the district or county

attorney to the commissioner of insurance. The commissioner of insur-

ance shall remit all such funds to the state treasurer in accordance with

the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt

of any each such remittance, the state treasurer shall deposit the entire

amount thereof in the state treasury to the credit of the state firefighters

relief fund. The commissioner of insurance shall pay such amount of

funds to the Kansas state firefighters association, inc. for fire prevention

and fire extinguishment education and study.

(e) When a firefighters relief association fails to qualify for payments

under the firefighters relief act as a result of the territory which it serves

being consolidated, merged or annexed with another governmental unit

having a qualified firefighters relief association, the funds and obligations

of such disqualified association shall be transferred to the surviving fire-

fighters relief association and the disqualified association shall dissolve

forthwith under the existing laws of this state.

(f) When any firefighter, the spouse of such firefighter or those de-

pendent upon any member of a disqualified association is receiving rea-

sonable benefits from such association at the time of disqualification, the

benefits shall be continued in accordance with the resolution of such

disqualified association and shall be paid by the surviving association if

the disqualification resulted from consolidation, merger or annexation

and shall be paid by the district or county attorney if disqualification

resulted from reasons other than consolidation, merger or annexation.

Nothing in the firefighters relief act shall be construed as a bar to the

lawful receipt of such benefits.

(g) The treasurer of a firefighters relief association shall give bond

for the safekeeping of funds received under the firefighters relief act and

for faithful performance in such sum with such sureties as may be ap-

proved by the governing body of such city, township, county or fire dis-

trict. All the moneys so received shall be set apart and used by the fire-

fighters relief association of such cities, townships, counties or fire

districts solely and entirely for the objects and purposes of the firefighters

relief act and shall be paid to and distributed by the firefighters relief

associations of such cities, townships, counties or fire districts under such

provisions as shall be made by the governing body thereof. All such ex-

penditures or payments shall be subject to the continued availability of

moneys distributed to the association from the tax imposed by K.S.A. 40-

1703, and amendments thereto, in amounts sufficient for such expendi-

tures. In all cases involving expenditures or payments in an amount of

$1,500 or more prior certification shall be obtained from an attorney

designated by the governing body of the city, township, county or fire

district that such expenditure or payment complies with the requirements

of the firefighters relief act.

(h) The officers of a firefighters relief association may invest any

amount, not to exceed 90% of all such moneys, in investments authorized

by K.S.A. 12-1675, and amendments thereto, in the manner prescribed

therein or in purchasing bonds of the city, township, county or fire district

in which such firefighters relief association is located. When such invest-

ments are not obtainable, United States government bonds may be pur-

chased or municipal bonds or other obligations issued by any municipality

of the state of Kansas as defined in K.S.A. 10-1101, and amendments

thereto, which are general obligations of the municipality issuing the

same. Such investment shall be approved by the governing body of such

city, township, county or fire district.

Sec. 116. K.S.A. 40-2120 is hereby amended to read as follows: 40-

2120. (a) The board shall select an insurer or third-party administrator to

administer the plan. The board shall evaluate bids submitted by interested

parties based on criteria established by the board which shall include:

(1) The bidder's proven ability to handle individual accident and

health insurance;

(2) the efficiency of the bidder's claim paying procedure;

(3) an estimate of total charges for administering the plan; and

(4) the bidder's ability to administer the plan in a cost efficient man-

ner.

(b) The administering carrier so selected shall serve for a period of

three years subject to removal for cause. At least one year prior to the

expiration of each three-year period of service, the board shall invite all

interested parties, including the current administering carrier, to submit

bids to serve as the administering carrier for the succeeding three-year

period. Selection of the administering carrier for the succeeding period

shall be made at least six months prior to the end of the current three-

year period. The administering carrier shall be paid as provided in the

plan of operation.

(c) The administering carrier shall perform all administrative, eligi-

bility and administrative claims payment functions relating to the plan,

including:

(1) Establishing a billing procedure for collection of premiums from

insured persons. Billings shall be made on a periodic basis as determined

by the board, which shall not be more frequent than a monthly billing;

(2) performing all necessary functions to assure timely payment of

benefits to covered persons under the plan including making available

information relating to the proper manner of submitting a claim for ben-

efits to the plan, distributing forms upon which submission shall be made

and evaluating the eligibility of each claim for payment under the plan;

(3) accepting payments of premiums from insured persons and trans-

mitting remitting such payments to the state treasurer for in accordance

with the provisions of K.S.A. 75-4215, and amendments thereto. Upon

receipt of each such remittance, the state treasurer shall deposit the entire

amount in the state treasury to the credit to of the uninsurable health

insurance plan fund established in K.S.A. 40-2126, and amendments

thereto;

(4) submitting regular reports to the board regarding the operation

of the plan. The frequency, content and form of the reports shall be as

determined by the board;

(5) determining net written and earned premiums, the expense of

administration, and the paid and incurred losses for each year and re-

porting such information to the board and the commissioner in a form

and manner prescribed by the commissioner.

Sec. 117. K.S.A. 40-2251 is hereby amended to read as follows: 40-

2251. (a) The commissioner of insurance shall develop or approve statis-

tical plans which shall be used by each insurer in the recording and re-

porting of its premium, accident and sickness insurance loss and expense

experience, in order that the experience of all insurers may be made

available at least annually in such form and detail as may be necessary to

aid the commissioner and other interested parties in determining whether

rates and rating systems utilized by insurance companies, mutual non-

profit hospital and medical service corporations, health maintenance or-

ganizations and other entities designated by the commissioner produce

premiums and subscriber charges for accident and sickness insurance

coverage on Kansas residents, employers and employees that are reason-

able in relation to the benefits provided and to identify any accident and

sickness insurance benefits or provisions that may be unduly influencing

the cost. Such plans may also provide for the recording and reporting of

expense experience items which are specifically applicable to the state.

In promulgating such plans, the commissioner shall give due considera-

tion to the rating systems, classification criteria and insurance and sub-

scriber plans on file with the commissioner and, in order that such plans

may be as uniform as is practicable among the several states, to the form

of the plans and rating systems in other states.

(b) The secretary of health and environment, as administrator of the

health care database, pursuant to K.S.A. 2000 Supp. 65-6804, and amend-

ments thereto, shall serve as the statistical agent for the purpose of gath-

ering, receiving and compiling the data required by the statistical plan or

plans developed or approved under this section. The commissioner of

insurance shall make an assessment upon the reporting insurance com-

panies, health maintenance organizations, group self-funded pools, and

other reporting entities sufficient to cover the anticipated expenses to be

incurred by the secretary in gathering, receiving and compiling such data.

Such assessment shall be in the form of an annual fee established by the

secretary and charged to each reporting entity in proportion to such en-

tity's respective shares of total health insurance premiums, subscriber

charges and member fees received during the preceding calendar year.

Such assessments shall be paid to the secretary and the secretary shall

remit such fees to the state treasurer in accordance with the provisions of

K.S.A. 75-4215, and amendments thereto. Upon receipt of each such re-

mittance, the state treasurer shall deposit the same entire amount in the

state treasury and it shall be credited to the credit of the insurance sta-

tistical plan fund. Compilations of aggregate data gathered under the

statistical plan or plans required by this act shall be made available to

insurers, trade associations and other interested parties.

(c) The secretary, in writing, shall report to the commissioner of in-

surance any insurance company, health maintenance organization, group

self-funded pool, nonprofit hospital and medical service corporation and

any other reporting entity which fails to report the information required

in the form, manner or time prescribed by the secretary. Upon receipt

of such report, the commissioner of insurance shall impose an appropriate

penalty in accordance with K.S.A. 40-2,125, and amendments thereto.

Sec. 118. K.S.A. 40-2305 is hereby amended to read as follows: 40-

2305. (a) Each political subdivision of the state is hereby authorized to

submit for approval by the state agency a plan for extending or modifying

the benefits of title II of the social security act, in conformity with the

applicable provisions of such act, to employees, including any holding the

office or position of policeman or fireman, of such political subdivisions.

Whenever the governor certifies to the secretary of health and human

services that, as a result of a referendum held pursuant to subsection (b)

of K.S.A. 40-2305a, and amendments thereto, school employees who are

covered by the state system for retirement and payment of annuities to

school employees as provided for in article 55 of chapter 72 of the Kansas

Statutes Annotated, and amendments thereto, the conditions specified in

section 218(d)(3) of the social security act have been met with respect to

such employees under such separate retirement system, the state agency

shall adopt a plan or amend a plan for extending such benefits to school

employees, as defined in subsection (d) of K.S.A. 72-5501, and amend-

ments thereto, of every political subdivision and such political subdivision,

and its employees shall be liable under such plan or amended plan to the

same extent as if the political subdivision had submitted the plan and the

same had been approved by the state agency. Each such plan and any

amendment thereof shall be approved by the state agency if it finds that

such plan, or such plan as amended, is in conformity with such require-

ments as are provided in regulations of the state agency, except that no

such plan shall be approved unless: (1) It is in conformity with the require-

ments of the federal social security act and with the agreement entered

into pursuant to K.S.A. 40-2303, and amendments thereto; (2) it provides

that all services which constitute employment as defined in subsection

(b) of K.S.A. 40-2302, and amendments thereto, and are performed in

the employ of the political subdivision by employees thereof, including

any holding the office or position of policeman or fireman, shall be cov-

ered by the plan, except that it may exclude services performed by other

individuals to whom section 218(c)(3)(C) of the federal social security act

is applicable; (3) it specifies the source or sources from which the funds

necessary to make the payments required by paragraph (1) of subsection

(c) of this section and by subsection (d) of this section are expected to be

derived and contains reasonable assurance that such sources will be ad-

equate for such purpose; (4) it provides for such methods of administra-

tion of the plan by the political subdivision as are found by the state

agency to be necessary for the proper and efficient administration of the

plan; (5) it provides that the political subdivision will make such reports,

in such form and containing such information, as the state agency may

from time to time require, and comply with such provisions as the state

agency or the secretary of health and human services may from time to

time find necessary to assure the correctness and verification of such

reports; and (6) it authorizes the state agency to terminate the plan in its

entirety, in the discretion of the state agency, if it finds there has been a

failure to comply substantially with any provision contained in such plan,

such termination to take effect at the expiration of such notice and on

such conditions as may be provided by regulations of the state agency and

may be consistent with the provisions of the social security act.

(b) The state agency shall not finally refuse to approve a plan sub-

mitted by a political subdivision under subsection (a) of this section, and

shall not terminate an approved plan, without reasonable notice and op-

portunity for hearing to the political subdivision affected thereby. Hear-

ings under this subsection shall be conducted in accordance with the

provisions of the Kansas administrative procedure act.

(c) (1) Each political subdivision as to which a plan has been ap-

proved under this section shall pay into the contribution fund, with re-

spect to wages, as defined in subsection (a) of K.S.A. 40-2302, and amend-

ments thereto, at such time or times as the state agency may by regulation

prescribe, contributions in the amounts and at the rates specified in the

applicable agreement entered into by the state agency under K.S.A. 40-

2303, and amendments thereto. Delinquent contributions shall be subject

to a late penalty to defray the costs of the collection efforts in the amount

of $10 for each contribution period. All moneys received for the late

penalty imposed by this paragraph (1) of subsection (c) shall be deposited

remitted to the state treasurer in accordance with the provisions of K.S.A.

75-4215, and amendments thereto. Upon receipt of each such remittance,

the state treasurer shall deposit the entire amount in the state treasury

and credited to the credit of the municipal accounting services recovery

fund.

(2) Each political subdivision required to make payments under par-

agraph (1) of this subsection (c) is authorized, in consideration of the

employee's retention in, or entry upon, employment after enactment of

this act, to impose upon each of its employees, as to services which are

covered by an approved plan, a contribution with respect to such em-

ployee's wages, as defined in subsection (a) of K.S.A. 40-2302, and

amendments thereto, not exceeding the amount of the employee tax

which would be imposed by the federal insurance contributions act if

such services constituted employment within the meaning of that act, and

to deduct the amount of such contribution from such employee's wages

as and when paid. Contributions so collected shall be paid into the con-

tribution fund in partial discharge of the liability of such political subdi-

vision or instrumentality under paragraph (1) of this subsection (c). Fail-

ure to deduct such contribution shall not relieve the employee or

employer of liability therefor.

(d) Delinquent payments due under paragraph (1) of subsection (c)

of this section may, with interest at the rate prescribed by federal statute

or regulation for delinquent social security remittances, be recovered by

the state agency by action in a court of competent jurisdiction against the

political subdivision liable therefor or may, at the request of the state

agency, be deducted from any other moneys payable to such subdivision

by any department or agency of the state or may be offset against any

funds of the subdivision held by the county treasurer upon certification

by the state agency of such liability to the officials of the subdivision and

to the county treasurer. Upon receipt of the state agency's certification,

the county treasurer shall remit from the funds of such political subdi-

vision the amount certified. The county treasurer shall notify the subdi-

vision of the amount remitted to the state agency.

(e) Each political subdivision, other than an instrumentality of the

state, shall pay its contributions required under the provisions of subsec-

tion (c) of this section from the same fund that the wages for which such

contribution is made are paid or from any other funds available to it for

such purpose. Each political subdivision, except an instrumentality of the

state or a school district, which is by law authorized to levy taxes for other

purposes, annually at the time of its levy of taxes for other purposes, may

levy a tax, which may be in addition to all other taxes authorized by law,

for the purpose of making its contributions under subsection (c) of this

section 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 located in the county, which tax

together with any other funds available to such political subdivision for

such purpose shall be sufficient to enable it to make such contributions.

Any taxing subdivision authorized to levy a tax under this subsection, in

lieu of levying such tax, may pay the required employer contribution from

any employee benefits contribution fund established pursuant to K.S.A.

12-16,102, and amendments thereto. All contributions of such political

subdivisions shall be transmitted to the state agency in the manner as the

state agency shall by rules and regulations provide, and, upon receipt of

the same, the state agency shall remit such contributions to the state

treasurer, in accordance with the provisions of K.S.A. 75-4215, and

amendments thereto. Upon receipt of each such remittance, the state trea-

surer shall deposit the same entire amount in the state treasury and the

state treasurer shall credit the same to the credit of the contribution fund

created by K.S.A. 40-2307, and amendments thereto.

Sec. 119. K.S.A. 40-2306 is hereby amended to read as follows: 40-

2306. (a) Each department, commission, board, institution, bureau, of-

fice, officer or other employing unit or instrumentality of the state shall

pay to the state agency contributions with respect to wages, as defined in

subsection (a) of K.S.A. 40-2302, and amendments thereto, of its em-

ployees which are paid from fees or other income except from direct

appropriations from the state general fund, equal to the taxes which would

be imposed by the federal insurance contributions act if the services for

which such wages were paid constituted employment within the meaning

of that act. Such contributions shall be transmitted to the state agency in

the manner as the state agency shall, by rules and regulations, provide,

and upon receipt of the same, the state agency shall remit such contri-

butions to the state treasurer in accordance with the provisions of K.S.A.

75-4215, and amendments thereto. Upon receipt of each such remittance,

the state treasurer shall deposit the same entire amount in the state treas-

ury and the state treasurer shall credit the same to the credit of the con-

tribution fund created by K.S.A. 40-2307, and amendments thereto.

(b) Contributions with respect to wages, as defined in subsection (a)

of K.S.A. 40-2302, and amendments thereto, of employees of the state or

an instrumentality of the state which wages are paid from direct appro-

priations from the state general fund, equal to the taxes which would be

imposed by the federal insurance contributions act if the services for

which such wages were paid constituted employment within the meaning

of that act shall be paid or transferred by the state agency to the contri-

bution fund created by K.S.A. 40-2307, and amendments thereto, from

the ``old-age insurance fund'' in the state treasury, which fund is hereby

created for use by the state agency for such purposes and such transfer

of funds shall be made by the state treasurer upon order of the state

agency transmitted to the state treasurer and the director of accounts and

reports and upon receipt of such order said the state treasurer and direc-

tor of accounts and reports shall make the proper changes in the records

of their respective offices.

(c) If any employing unit or instrumentality of this state, due to a

shortage of funds; is unable to make the contributions required by sub-

section (a) of this section, the state agency may advance funds to such

employing unit or instrumentality for such purpose from the old-age in-

surance fund created by subsection (b) of this section upon such terms

and conditions as shall be agreed upon by the state agency and said the

employing unit or instrumentality.

(d) If the amount of funds in the contribution fund or the old-age

insurance fund are insufficient to make payments required to be made

by the state to the secretary of the treasury, any department, commission,

board or other agency of the state, which is supported in whole or in part

from fees, may advance money from its fee funds to the state agency

upon such terms and conditions as shall be agreed upon by such depart-

ment, commission, board or other agency of the state with the state

agency for the purpose of making such payments to the secretary of the

treasury.

Sec. 120. K.S.A. 40-2809 is hereby amended to read as follows: 40-

2809. The commissioner of insurance shall pay remit all tax moneys col-

lected under the provisions of this act into to the state treasurer in ac-

cordance with the provisions of K.S.A. 75-4215, and amendments thereto.

Upon receipt of each such remittance, the state treasurer shall deposit the

entire amount in the state treasury on or before the first day of each

month, and the state treasurer shall credit the same to the credit of the

state general fund.

Sec. 121. K.S.A. 40-2906a is hereby amended to read as follows: 40-

2906a. (a) Unless a longer period has been allowed by the commissioner,

a member insurer shall at its option have the right to show a certificate

of contribution as an asset in the form approved by the commissioner

pursuant to subsection (c) of K.S.A. 40-2906, and amendments thereto,

at percentages of the original face amount approved by the commissioner,

for calendar years as follows:

(1) One hundred percent (100%) for the calendar year of issuance;

(2) eighty percent (80%) for the first calendar year after the year of

issuance;

(3) sixty percent (60%) for the second calendar year after the year of

issuance;

(4) forty percent (40%) for the third calendar year after the year of

issuance; and

(5) twenty percent (20%) for the fourth calendar year after the year

of issuance.

(b) The insurer may offset the amount written off by it in a calendar

year under subsection (a) against its premium tax liability to this state

accrued with respect to business transacted in such year.

(c) Any sums acquired by refund pursuant to subsection (b) of K.S.A.

40-2906, and amendments thereto, from the association which have there-

tofore been written off by contributing insurers and offset against pre-

mium taxes as provided in subsection (b) of this section, and is not then

needed for purposes of this act, shall be paid by the association to the

commissioner to be deposited remitted by the commissioner with to the

state treasurer in accordance with the provisions of K.S.A. 75-4215, and

amendments thereto. Upon receipt of each such remittance, the state trea-

surer shall deposit the entire amount in the state treasury for credit to

the credit of the state general fund.

(d) The provisions of K.S.A. 40-2914, and amendments thereto, shall

not apply to amounts written off under subsection (a) of this section.

Sec. 122. K.S.A. 40-3016 is hereby amended to read as follows: 40-

3016. (a) Unless a longer period has been allowed by the commissioner,

a member insurer shall at its option have the right to show a certificate

of contribution as an asset in the form approved by the commissioner

pursuant to subsection (h) of K.S.A. 40-3009, subsection (g) and amend-

ments thereto, at percentages of the original face amount approved by

the commissioner, for calendar years as follows:

(1) One hundred percent (100%) for the calendar year of issuance;

(2) eighty percent (80%) for the first calendar year after the year of

issuance;

(3) sixty percent (60%) for the second calendar year after the year of

issuance;

(4) forty percent (40%) for the third calendar year after the year of

issuance;

(5) twenty percent (20%) for the fourth calendar year after the year

of issuance.

(b) The insurer may offset the amount written off by it in a calendar

year under subsection (a) above, against its premium tax liability to this

state accrued with respect to business transacted in such year.

(c) Any sums acquired by refund, pursuant to subsection (f) of K.S.A.

40-3009, subsection (f) and amendments thereto, from the association

which have theretofore been written off by contributing insurers and

offset against premium taxes as provided in subsection (b) above, and is

not then needed for purposes of this act, shall be paid by the association

to the commissioner and by him deposited with the commissioner shall

remit such moneys to the state treasurer for in accordance with the pro-

visions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each

such remittance, the state treasurer shall deposit the entire amount in the

state treasury to the credit to of the state general fund of this state.

Sec. 123. K.S.A. 40-3118 is hereby amended to read as follows: 40-

3118. (a) No motor vehicle shall be registered or reregistered in this state

unless the owner, at the time of registration, has in effect a policy of

motor vehicle liability insurance covering such motor vehicle, as provided

in this act, or is a self-insurer thereof, or the motor vehicle is used as a

driver training motor vehicle, as defined in K.S.A. 72-5015, and amend-

ments thereto, in an approved driver training course by a school district

or an accredited nonpublic school under an agreement with a motor ve-

hicle dealer, and such policy of motor vehicle liability insurance is pro-

vided by the school district or accredited nonpublic school. As used in

this section, the term ``financial security'' means such policy or self-in-

surance. The director shall require that the owner certify and provide

verification of financial security, in the manner prescribed by K.S.A. 8-

173, and amendments thereto, that the owner has such financial security,

and the owner of each motor vehicle registered in this state shall maintain

financial security continuously throughout the period of registration. In

addition, when an owner certifies that such financial security is a motor

vehicle liability insurance policy meeting the requirements of this act, the

director may require that the owner or owner's insurance company pro-

duce records to prove the fact that such insurance was in effect at the

time the vehicle was registered and has been maintained continuously

from that date. Failure to produce such records shall be prima facie ev-

idence that no financial security exists with regard to the vehicle con-

cerned. It shall be the duty of insurance companies, upon the request of

the director, to notify the director within 30 calendar days of the date of

the receipt of such request by the director of any insurance that was not

in effect on the date of registration and maintained continuously from

that date.

(b) Except as otherwise provided in K.S.A. 40-276, 40-276a and 40-

277, and amendments thereto, and except for termination of insurance

resulting from nonpayment of premium or upon the request for cancel-

lation by the insured, no motor vehicle liability insurance policy, or any

renewal thereof, shall be terminated by cancellation or failure to renew

by the insurer until at least 30 days after mailing a notice of termination,

by certified or registered mail or United States post office certificate of

mailing, to the named insured at the latest address filed with the insurer

by or on behalf of the insured. Time of the effective date and hour of

termination stated in the notice shall become the end of the policy period.

Every such notice of termination sent to the insured for any cause what-

soever shall include on the face of the notice a statement that financial

security for every motor vehicle covered by the policy is required to be

maintained continuously throughout the registration period, that the op-

eration of any such motor vehicle without maintaining continuous finan-

cial security therefor is a class B misdemeanor and shall be subject to a

fine of not less than $300 and not more than $1,000 and that the regis-

tration for any such motor vehicle for which continuous financial security

is not provided is subject to suspension and the driver's license of the

owner thereof is subject to suspension.

(c) The director of vehicles shall verify a sufficient number of insur-

ance certifications each calendar year as the director deems necessary to

insure compliance with the provisions of this act. The owner or owner's

insurance company shall verify the accuracy of any owner's certification

upon request, as provided in subsection (a).

(d) In addition to any other requirements of this act, the director shall

require a person to acquire insurance and for such person's insurance

company to maintain on file with the division evidence of such insurance

for a period of one year when a person has been convicted in this or

another state of any of the violations enumerated in K.S.A. 8-285, and

amendments thereto.

The director shall also require any driver whose driving privileges have

been suspended pursuant to this section to maintain such evidence of

insurance as required above.

The company of the insured shall immediately mail notice to the di-

rector whenever any policy required by this subsection to be on file with

the division is terminated by the insured or the insurer for any reason.

The receipt by the director of such termination shall be prima facie evi-

dence that no financial security exists with regard to the person con-

cerned.

No cancellation notice shall be sent to the director if the insured adds

or deletes a vehicle, adds or deletes a driver, renews a policy or is issued

a new policy by the same company. No cancellation notice shall be sent

to the director prior to the date the policy is terminated if the company

allows a grace period for payment until such grace period has expired and

the policy is actually terminated.

For the purposes of this act, the term ``conviction'' includes pleading

guilty or nolo contendere, being convicted or being found guilty of any

violation enumerated in this subsection without regard to whether sen-

tence was suspended or probation granted. A forfeiture of bail, bond or

collateral deposited to secure a defendant's appearance in court, which

forfeiture has not been vacated, shall be equivalent to a conviction.

The requirements of this subsection shall apply whether or not such

person owns a motor vehicle.

(e) Whenever the director shall receive prima facie evidence, as pre-

scribed by this section, that continuous financial security covering any

motor vehicle registered in this state is not in effect, the director shall

notify the owner by registered or certified mail or United States post

office certificate of mailing that, at the end of 30 days after the notice is

mailed, the registration for such motor vehicle and the driving privileges

of the owner of the vehicle shall be suspended or revoked, pursuant to

such rules and regulations as the secretary of revenue shall adopt, unless

within 10 days after the notice is mailed: (1) Such owner shall demonstrate

proof of continuous financial security covering such vehicle to the satis-

faction of the director; or (2) such owner shall mail a written request

which is postmarked within 10 days after the notice is mailed requesting

a hearing with the director. Upon receipt of a timely request for a hearing,

the director shall afford such person an opportunity for hearing within

the time and in the manner provided in K.S.A. 8-255, and amendments

thereto. If, within the ten-day period or at the hearing, such owner is

unable to demonstrate proof of continuous financial security covering the

motor vehicle in question, the director shall revoke the registration of

such motor vehicle and suspend the driving privileges of the owner of

the vehicle.

(f) Whenever the registration of a motor vehicle or the driving priv-

ileges of the owner of the vehicle are suspended or revoked for failure of

the owner to maintain continuous financial security, such suspension or

revocation shall remain in effect until satisfactory proof of insurance has

been filed with the director as required by subsection (d) and a reinstate-

ment fee in the amount herein prescribed is paid to the division of ve-

hicles. Such reinstatement fee shall be in the amount of $100 except that

if the registration of a motor vehicle of any owner is revoked within one

year following a prior revocation of the registration of a motor vehicle of

such owner under the provisions of this act such fee shall be in the amount

of $300. The division of vehicles shall, at least monthly, deposit remit such

fees with to the state treasurer, who shall credit such moneys in accord-

ance with the provisions of K.S.A. 75-4215, and amendments thereto.

Upon receipt of each such remittance, the state treasurer shall deposit the

entire amount in the state treasury to the credit of the state highway fund.

(g) In no case shall any motor vehicle, the registration of which has

been revoked for failure to have continuous financial security, be rere-

gistered in the name of the owner thereof, the owner's spouse, parent or

child or any member of the same household, until the owner complies

with subsection (f). In the event the registration plate has expired, no new

plate shall be issued until the motor vehicle owner complies with the

reinstatement requirements as required by this act.

(h) Evidence that an owner of a motor vehicle, registered or required

to be registered in this state, has operated or permitted such motor ve-

hicle to be operated in this state without having in force and effect the

financial security required by this act for such vehicle, together with proof

of records of the division of vehicles indicating that the owner did not

have such financial security, shall be prima facie evidence that the owner

did at the time and place alleged, operate or permit such motor vehicle

to be operated without having in full force and effect financial security

required by the provisions of this act.

(i) Any owner of a motor vehicle registered or required to be regis-

tered in this state who shall make a false certification concerning financial

security for the operation of such motor vehicle as required by this act,

shall be guilty of a class A misdemeanor. Any person, firm or corporation

giving false information to the director concerning another's financial se-

curity for the operation of a motor vehicle registered or required to be

registered in this state, knowing or having reason to believe that such

information is false, shall be guilty of a class A misdemeanor.

(j) The director shall administer and enforce the provisions of this act

relating to the registration of motor vehicles, and the secretary of revenue

shall adopt such rules and regulations as may be necessary for its admin-

istration.

(k) Whenever any person has made application for insurance cover-

age and such applicant has submitted payment or partial payment with

such application, the insurance company, if payment accompanied the

application and if insurance coverage is denied, shall refund the unearned

portion of the payment to the applicant or agent with the notice of denial

of coverage. If payment did not accompany the application to the insur-

ance company but was made to the agent, the agent shall refund the

unearned portion of the payment to the applicant upon receipt of the

company's notice of denial.

(l) For the purpose of this act, ``declination of insurance coverage''

means a final denial, in whole or in part, by an insurance company or

agent of requested insurance coverage.

Sec. 124. K.S.A. 40-3213 is hereby amended to read as follows: 40-

3213. (a) Every health maintenance organization and medicare provider

organization subject to this act shall pay to the commissioner the following

fees:

(1) For filing an application for a certificate of authority, $150;

(2) For filing each annual report, $50;

(3) For filing an amendment to the certificate of authority, $10.

(b) Every health maintenance organization subject to this act which

has operated for a period of three years but not more than five years shall

pay annually to the commissioner at the time such organization files its

annual report a privilege fee in an amount equal to one-half of one per

cent (.005) per annum of the total of all premiums, subscription charges

or any other term which may be used to describe the charges made by

such organization to enrollees; and after operating for a period of more

than five years from the time of organization a health maintenance or-

ganization shall pay annually to the commissioner at the time such organ-

ization files its annual report, a privilege fee in an amount equal to one

percent (1%) 1% per annum of the total of all premiums, subscription

charges or any other term which may be used to describe the charges

made by such organization to enrollees. In such computations all such

organizations shall be entitled to deduct therefrom any premiums or sub-

scription charges returned on account of cancellations and dividends re-

turned to enrollees. If the commissioner shall determine at any time that

the application of the privilege fee would cause a denial of, reduction in

or elimination of federal financial assistance to the state or to any health

maintenance organization subject to this act, the commissioner is hereby

authorized to terminate the operation of such privilege fee.

(c) For the purpose of insuring the collection of the privilege fee

provided for by subsection (b), every health maintenance organization

subject to this act and required by subsection (b) to pay such privilege

fee shall at the time it files its annual report, as required by K.S.A. 40-

3220, and amendments thereto, make a return, verified by affidavits of

its chief officer or principal managing director, to the commissioner, stat-

ing the amount of all premiums, assessments and charges received by the

health maintenance organization, whether in cash or notes, during the

year ending on the last day of the preceding calendar year. Upon the

receipt of such returns the commissioner of insurance shall verify the

same and assess the fees upon such organization on the basis and at the

rate provided herein and such fees shall thereupon become due and pay-

able.

(d) Premiums or other charges received by an insurance company

from the operation of a health maintenance organization subject to this

act shall not be subject to any fee or tax imposed under the provisions of

K.S.A. 40-252, and amendments thereto.

(e) Fees charged under this section shall be remitted to the state

treasurer for deposit in accordance with the provisions of K.S.A. 75-4215,

and amendments thereto. Upon receipt of each such remittance, the state

treasurer shall deposit the entire amount in the state treasury to the credit

of the state general revenue fund.

Sec. 125. K.S.A. 40-3421 is hereby amended to read as follows: 40-

3421. (a) Any insurer providing professional liability insurance coverage

to a health care provider, as defined by K.S.A. 40-3401, and amendments

thereto, who is licensed in Kansas shall report to the appropriate state

health care provider regulatory agency and the board of governors on

forms prescribed by the board of governors any written or oral claim or

action for damages for medical malpractice. The report shall be filed no

later than 30 days following the insurer's receipt of notice of the claim or

action and shall contain:

(1) The name, address, area of practice or specialty, policy coverage

and policy number of the insured; and

(2) the date of the occurrence giving rise to the claim, the date the

occurrence was reported to the insurer, and the date legal action, if any,

was initiated.

(b) Upon request of an agency to which a report is made under sub-

section (a), the insurer making the report shall provide to the agency no

later than 30 days following receipt of the request or receipt of the in-

formation, whichever is later:

(1) The names of all defendants involved in the claim; and

(2) a summary of the occurrence, including the name of the institu-

tion at which the incident occurred, the final diagnosis for which treat-

ment was sought or rendered, the patient's actual condition, the incident,

treatment or diagnosis giving rise to the claim and a description of the

principal injury giving rise to the claim.

(c) Reports required to be filed pursuant to this section shall be con-

fidential and shall not be admissible in any civil or criminal action or in

any administrative proceeding other than a disciplinary proceeding of a

health care provider involved in the reported occurrence.

(d) Any insurer which fails to report any information as required by

this section shall be subject, after proper notice and an opportunity to be

heard, to:

(1) A civil fine assessed by the board of governors in an amount not

exceeding $1,000 for each day after the thirty-day period for reporting

that the information is not reported; and

(2) suspension, revocation, denial of renewal or cancellation of the

insurer's certificate of authority to do business in this state or certificate

of self-insurance.

The board of governors shall remit promptly to the state treasurer any

moneys collected from fines assessed pursuant to this subsection to the

state treasurer in accordance with the provisions of K.S.A. 75-4215, and

amendments thereto. Upon receipt thereof of each such remittance, the

state treasurer shall deposit the entire amount in the state treasury and

credit it to the credit of the state general fund.

(e) Any insurer which, in good faith, reports or provides any infor-

mation pursuant to this act shall not be liable in a civil action for damages

or other relief arising from the reporting or providing of such information.

(f) As used in this section, ``insurer'' means insurer or self-insurer, as

defined by K.S.A. 40-3401, and amendments thereto, or joint underwrit-

ing association operating pursuant to K.S.A. 40-3413, and amendments

thereto.

(g) The requirements of this section shall not be applicable with re-

spect to any occurrence on or after July 1, 1991, giving rise to any claim

or action against any optometrist or pharmacist.

(h) The requirements of this section shall not be applicable with re-

spect to any occurrence on or after July 1, 1995, giving rise to any claim

or action against any physical therapist.

Sec. 126. K.S.A. 41-317 is hereby amended to read as follows: 41-

317. (a) Applications for all licenses under this act shall be upon forms

prescribed and furnished by the director and shall be filed with the di-

rector in duplicate. Each application shall be accompanied by a state

registration fee of $50 for each initial application and $10 for each renewal

application to defray the cost of preparing and furnishing standard forms

incident to the administration of this act and the cost of processing the

application. Each application shall also be accompanied by a deposit of a

certified or cashier's check of a bank within this state, United States post

office money order or cash in the full amount of the license fee required

to be paid for the kind of license applied for, which license fee shall be

returned to the applicant if the application is denied. All registration fees

shall be paid into the state treasury remitted by the director to the state

treasurer in accordance with the provisions of K.S.A. 75-4215, and

amendments thereto. Upon receipt of each such remittance, the state trea-

surer shall deposit the entire amount in the state treasury and shall be

credited to the credit of the state general fund. All license fees received

by the director, including fees received for licenses to manufacture beer,

regardless of its alcoholic content, shall be paid into the state treasury by

the director and shall be credited to the state general fund.

(b) Every applicant for a manufacturer's, distributor's, nonbeverage

user's, microbrewery, farm winery or retailer's license shall file with the

application a joint and several bond on a form prescribed by the director

and executed by good and sufficient corporate sureties licensed to do

business within the state of Kansas to the director, in the following

amounts:

(1) For a manufacturer, $25,000;

(2) for a spirits distributor, $15,000 or an amount equal to the highest

monthly liability of the distributor for taxes imposed by the Kansas liquor

control act for any of the 12 months immediately prior to renewal of the

distributor's license, whichever amount is greater;

(3) for a beer or wine distributor, $5,000 or an amount equal to the

highest monthly liability of the distributor for taxes imposed by the Kansas

liquor control act for any of the 12 months immediately prior to renewal

of the distributor's license, whichever amount is greater;

(4) for a retailer, $2,000;

(5) for nonbeverage users, $200 for class 1, $500 for class 2, $1,000

for class 3, $5,000 for class 4 and $10,000 for class 5; and

(6) for a microbrewery or a farm winery, $2,000.

If a distributor holds or applies for more than one distributor's license,

only one bond for all such licenses shall be required, which bond shall be

in an amount equal to the highest applicable bond.

(c) All bonds required by this section shall be conditioned on the

licensee's compliance with the provisions of this act and payment of all

taxes, fines and forfeitures which may be assessed against the licensee.

Sec. 127. K.S.A. 41-328 is hereby amended to read as follows: 41-

328. (a) In addition to or in lieu of any other civil or criminal penalty

provided by law, the director, upon a finding that a licensee under the

Kansas liquor control act has violated any provision thereof, may impose

on such licensee a civil fine not exceeding $1,000 for each violation.

(b) No fine shall be imposed pursuant to this section except upon the

written order of the director to the licensee who committed the violation.

Such order shall state the violation, the fine to be imposed and the right

of the licensee to appeal the order. Such order shall be subject to appeal

and review in the manner provided by K.S.A. 41-321, 41-322 and 41-323,

and amendments thereto.

(c) Any fine imposed pursuant to this section shall be paid remitted

to the state treasurer, who in accordance with the provisions of K.S.A.

75-4215, and amendments thereto. Upon receipt of each such remittance,

the state treasurer shall deposit the same entire amount in the state treas-

ury and credit it to the credit of the state general fund.

(d) This section shall be part of and supplemental to the Kansas liquor

control act.

Sec. 128. K.S.A. 41-347 is hereby amended to read as follows: 41-

347. (a) The director may issue, in accordance with rules and regulations

of the secretary: (1) To one or more charitable organizations a temporary

permit authorizing the sale of alcoholic liquor at an auction; or (2) to an

individual a temporary permit authorizing the sale of one or more limited

issue porcelain containers containing alcoholic liquor. The permit shall

be issued in the names of the charitable organizations or individual to

which it is issued.

(b) Applications for temporary permits shall be required to be filed

with the director not less than 14 days before the event for which the

permit is sought unless the director waives such requirement for good

cause. Each application for a permit authorizing an auction shall state the

purposes for which the proceeds of the event will be used. The application

shall be upon a form prescribed and furnished by the director and shall

be filed with the director in duplicate. Each application shall be accom-

panied by a permit fee of $25 for each day for which the permit is issued,

which fee shall be paid by a certified or cashier's check of a bank within

this state, United States post office money order or cash in the full amount

thereof. All permit fees collected by the director pursuant to this section

shall be remitted to the state treasurer, who in accordance with the pro-

visions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each

such remittance, the state treasurer shall deposit the entire amount in the

state treasury and credit it to the credit of the state general fund.

(c) Temporary permits shall specify the premises for which they are

issued and shall be issued only for premises where the city, county or

township zoning code allows use for which the permit is issued.

(d) A temporary permit shall be issued for a period of time not to

exceed three consecutive days, the dates and hours of which shall be

specified in the permit. Not more than one temporary permit may be

issued to any one applicant in a calendar year.

(e) All proceeds from an auction for which a temporary permit is

issued shall be used only for the purposes stated in the application for

such permit.

(f) A temporary permit shall not be transferable or assignable.

(g) The director may refuse to issue a temporary permit to any char-

itable organization or individual which has violated any provision of the

Kansas liquor control act.

(h) This section shall be part of and supplemental to the Kansas liquor

control act.

Sec. 129. K.S.A. 41-501 is hereby amended to read as follows: 41-

501. (a) As used in this section and K.S.A. 41-501a, and amendments

thereto:

(1) ``Gallon'' means wine gallon.

(2) ``Federal area'' means any lands or premises which are located

within the exterior boundaries of this state and which are held or acquired

by or for the use of the United States or any department, establishment

or agency of the United States.

(3) ``Malt product'' means malt syrup, malt extract, liquid malt or

wort.

(b) (1) For the purpose of raising revenue a tax is imposed upon the

manufacturing, using, selling, storing or purchasing alcoholic liquor, ce-

real malt beverage or malt products in this state or a federal area at a rate

of $.18 per gallon on beer and cereal malt beverage; $.20 per gallon on

all wort or liquid malt; $.10 per pound on all malt syrup or malt extract;

$.30 per gallon on wine containing 14% or less alcohol by volume; $.75

per gallon on wine containing more than 14% alcohol by volume; and

$2.50 per gallon on alcohol and spirits.

(2) The tax imposed by this section shall be paid only once and shall

be paid by the person in this state or federal area who first manufactures,

uses, sells, stores, purchases or receives the alcoholic liquor or cereal malt

beverage. The tax shall be collected and paid to the director as provided

in this act. If the alcoholic liquor or cereal malt beverage is manufactured

and sold in this state or a federal area, the tax shall be paid by the man-

ufacturer, microbrewery or farm winery producing it. If the alcoholic

liquor or cereal malt beverage is imported into this state by a distributor

for the purpose of sale at wholesale in this state or a federal area, the tax

shall be paid by the distributor, and in no event shall such tax be paid by

the manufacturer unless the alcoholic liquor or cereal malt beverage is

manufactured in this state. If not to exceed one gallon, or metric equiv-

alent, per person of alcoholic liquor has been purchased by a private

citizen outside the borders of the United States and is brought into this

state by the private citizen in such person's personal possession for such

person's own personal use and not for sale or resale, such import is lawful

and no tax payment shall be due thereon.

(c) Manufacturers, microbreweries, farm wineries or distributors at

wholesale of alcoholic liquor or cereal malt beverage shall be exempt from

the payment of the gallonage tax imposed on alcoholic liquor and cereal

malt beverage, upon satisfactory proof, including bills of lading furnished

to the director by affidavit or otherwise as the director requires, that the

liquor or cereal malt beverage was manufactured in this state but was

shipped out of the state for sale and consumption outside the state.

(d) Wines manufactured or imported solely and exclusively for sac-

ramental purposes and uses shall not be subject to the tax provided for

by this section.

(e) The tax provided for by this section is not imposed upon:

(1) Any alcohol or wine, whether manufactured in or imported into

this state, when sold to a nonbeverage user licensed by the state, for use

in the manufacture of any of the following when they are unfit for bev-

erage purposes: Patent and proprietary medicines and medicinal, anti-

septic and toilet preparations; flavoring extracts and syrups and food prod-

ucts; scientific, industrial and chemical products; or scientific, chemical,

experimental or mechanical purposes; or

(2) the privilege of engaging in any business of interstate commerce

or otherwise, which business may not be made the subject of taxation by

this state under the constitution and statutes of the United States.

(f) The tax imposed by this section shall be in addition to all other

taxes imposed by the state of Kansas or by any municipal corporation or

political subdivision thereof.

(g) Retail sales of alcoholic liquor, sales of beer to consumers by mi-

crobreweries and sales of wine to consumers by farm wineries shall not

be subject to the tax imposed by the Kansas retailers' sales tax act but

shall be subject to the enforcement tax provided for in this act.

(h) Notwithstanding any ordinance to the contrary, no city shall im-

pose an occupation or privilege tax on the business of any person, firm

or corporation licensed as a manufacturer, distributor, microbrewery,

farm winery, retailer or nonbeverage user under this act and doing busi-

ness within the boundaries of the city except as specifically authorized by

K.S.A. 41-310, and amendments thereto.

(i) The director shall collect the taxes imposed by this section and

shall account for and turn over to the state treasurer at least once each

week remit all moneys collected from the tax to the state treasurer in

accordance with the provisions of K.S.A. 75-4215, and amendments

thereto. Upon receipt of each such remittance, the state treasurer shall

deposit the entire amount in the state treasury and the state treasurer

shall credit 1/10 of the moneys collected from taxes imposed upon alcohol

and spirits under subsection (b)(1) to the community alcoholism and in-

toxication programs fund created by K.S.A. 41-1126, and amendments

thereto, and shall credit the balance of the moneys collected to the state

general fund.

(j) If any alcoholic liquor manufactured in or imported into this state

is sold to a licensed manufacturer or distributor of this state to be used

solely as an ingredient in the manufacture of any beverage for human

consumption, the tax imposed upon the manufacturer or distributor shall

be reduced by the amount of the taxes which have been paid under this

section as to the alcoholic liquor so used.

(k) The tax provided for by this section is not imposed upon alcohol

or wine used by any school or college for scientific, chemical, experimen-

tal or mechanical purposes or by hospitals, sanitoria or other institutions

caring for the sick. Any school, college, hospital, sanatorium or other

institution caring for the sick may import alcohol or wine for scientific,

chemical, experimental, mechanical or medicinal purposes by making ap-

plication to the director for a permit to import it and receiving such a

permit. Application for the permit shall be on a form prescribed and

furnished by the director, and a separate permit shall be required for

each purchase of alcohol or wine. A fee of $2 shall accompany each ap-

plication. All permits shall be issued in triplicate to the applicant and shall

be under the seal of the office of the director. Two copies of the permit

shall be forwarded by the applicant to the microbrewery, farm winery,

manufacturer or distributor from which the alcohol or wine is purchased,

and the microbrewery, farm winery, manufacturer or distributor shall

return to the office of the director one copy of the permit with its shipping

affidavit and invoice. Within 10 days after receipt of any alcohol or wine,

the school, college, hospital or sanatorium ordering it shall file a report

in the office of the director upon forms furnished by the director, showing

the amount of alcohol or wine received, the place where it is to be stored,

from whom it was received, the purpose for which it is to be used and

such other information as required by the director. Any school, college,

hospital, sanatorium or institution caring for the sick, which complies with

the provisions of this subsection, shall not be required to have any other

license to purchase alcohol or wine from a microbrewery, farm winery,

manufacturer or distributor.

Sec. 130. K.S.A. 41-2606 is hereby amended to read as follows: 41-

2606. (a) Applications for all licenses under this act shall be upon forms

prescribed and furnished by the director and shall be filed with the di-

rector in duplicate. Each application shall be accompanied by an appli-

cation fee of $50, for each initial application, and $10, for each renewal

application, to defray the cost of preparing and furnishing standard forms

incident to the administration of this act and the cost of processing such

application. Each application shall also be accompanied by a certified or

cashier's check of a bank within this state, United States post office money

order or cash in the full amount of the license fee prescribed by K.S.A.

41-2622, and amendments thereto, which fee shall be returned to the

applicant if the application is denied.

(b) Each application for licensure as a club shall be accompanied by

a copy of the current bylaws and rules of the club and a current list of

the officers of the club.

(c) All application fees collected by the director shall be remitted to

the state treasurer, who in accordance with the provisions of K.S.A. 75-

4215, and amendments thereto. Upon receipt of each such remittance, the

state treasurer shall deposit the entire amount in the state treasury and

credit it to the credit of the state general fund.

Sec. 131. K.S.A. 41-2622 is hereby amended to read as follows: 41-

2622. (a) At the time application is made to the director for a license

pursuant to the club and drinking establishment act, the applicant shall

pay the following annual license fee in the manner provided by K.S.A.

41-2606, and amendments thereto:

(1) For a class A club which is a bona fide nonprofit fraternal or war

veterans' club, as defined by rules and regulations of the secretary, $250;

(2) for a class A club which is a bona fide nonprofit social club, as

defined by rules and regulations of the secretary, and which has not more

than 500 members, $500;

(3) for a class A club which is a bona fide nonprofit social club, as

defined by rules and regulations of the secretary, and which has more

than 500 members, $1,000;

(4) for a class B club, $1,000;

(5) for a drinking establishment, $1,000;

(6) for a hotel of which the entire premises are licensed as a drinking

establishment, $3,000;

(7) for a caterer, $500;

(8) for a drinking establishment/caterer, $1,500; and

(9) for a drinking establishment/caterer, if the drinking establishment

is a hotel of which the entire premises are licensed as a drinking estab-

lishment, $3,500.

If a licensee is described by more than one of the above, the highest

fee shall apply.

(b) In addition to the fee provided by subsection (a), any city where

the licensed premises of a club or drinking establishment are located or,

if such licensed premises are not located in a city, the board of county

commissioners of the county where the licensed premises are located may

levy and collect an annual occupation or license tax from the licensee in

an amount equal to not less than $100 nor more than $250.

(c) No occupational or excise tax or license fee other than that au-

thorized by subsection (b) shall be levied by any city or county against or

collected from a licensed club or drinking establishment.

(d) The director shall remit all moneys received under this section to

the state treasurer at least monthly in accordance with the provisions of

K.S.A. 75-4215, and amendments thereto. Upon receipt of each such re-

mittance, the state treasurer shall deposit the entire amount thereof in

the state treasury. Of each such deposit, 50% shall be credited to the state

general fund, and the remaining 50% shall be credited to the other state

fees fund of the department of social and rehabilitation services. In ad-

dition to other purposes for which expenditures may be made from the

other state fees fund of the department of social and rehabilitation serv-

ices, expenditures may be made by the secretary of social and rehabili-

tation services for the purpose of implementing the powers and duties of

the secretary under the provisions of K.S.A. 65-4006 and 65-4007, and

amendments thereto.

Sec. 132. K.S.A. 41-2645 is hereby amended to read as follows: 41-

2645. (a) A temporary permit shall allow the permit holder to offer for

sale, sell and serve alcoholic liquor for consumption on unlicensed prem-

ises, which may be open to the public, subject to the terms of such permit.

(b) The director may issue a temporary permit to any one or more

persons or organizations applying for such a permit, in accordance with

rules and regulations of the secretary. The permit shall be issued in the

names of the persons or organizations to which it is issued.

(c) Applications for temporary permits shall be required to be filed

with the director not less than 14 days before the event for which the

permit is sought unless the director waives such requirement for good

cause. Each application shall state the purposes for which the proceeds

of the event will be used. The application shall be upon a form prescribed

and furnished by the director and shall be filed with the director in du-

plicate. Each application shall be accompanied by a permit fee of $25 for

each day for which the permit is issued, which fee shall be paid by a

certified or cashier's check of a bank within this state, United States post

office money order or cash in the full amount thereof. All permit fees

collected by the director pursuant to this section shall be remitted to the

state treasurer, who in accordance with the provisions of K.S.A. 75-4215,

and amendments thereto. Upon receipt of each such remittance, the state

treasurer shall deposit the entire amount in the state treasury and credit

it to the credit of the state general fund.

(d) Temporary permits shall specify the premises for which they are

issued and shall be issued only for premises where the city, county or

township zoning code allows use for which the permit is issued. No tem-

porary permit shall be issued for premises which are not located in a

county where the qualified electors of the county:

(1) (A) Approved, by a majority vote of those voting thereon, to adopt

the proposition amending section 10 of article 15 of the constitution of

the state of Kansas at the general election in November, 1986; or (B) have

approved a proposition to allow the sale of liquor by the individual drink

in public places within the county at an election pursuant to K.S.A. 41-

2646, and amendments thereto; and

(2) have not approved a proposition to prohibit such sales of alcoholic

liquor in such places at a subsequent election pursuant to K.S.A. 41-2646,

and amendments thereto.

(e) A temporary permit shall be issued for a period of time not to

exceed three consecutive days, the dates and hours of which shall be

specified in the permit. Not more than four temporary permits may be

issued to any one applicant in a calendar year.

(f) All proceeds from an event for which a temporary permit is issued

shall be used only for the purposes stated in the application for such

permit.

(g) A temporary permit shall not be transferable or assignable.

(h) The director may refuse to issue a temporary permit to any person

or organization which has violated any provision of the Kansas liquor

control act, the drinking establishment act or K.S.A. 79-41a01 et seq., and

amendments thereto.

Sec. 133. K.S.A. 41-2702 is hereby amended to read as follows: 41-

2702. (a) No retailer shall sell any cereal malt beverage without having

first secured a license for each place of business as herein provided. In

case such place of business is located within the corporate limits of a city,

the application for license shall be made to the governing body of such

city. In all other cases, the application for license shall be made to the

board of county commissioners in the county in which such place of busi-

ness is to be located, except that the application for license to sell on

railway cars shall be made to the director as hereinafter provided.

(b) A board of county commissioners shall not issue or renew a re-

tailer's license without giving the clerk of the township where the place

of business is to be located written notice by registered mail of the filing

of the application for licensure or renewal. The township board may

within 10 days file advisory recommendations as to the granting of such

license or renewal and such advisory recommendations shall be consid-

ered by the board of county commissioners before such license is issued.

If an original license is granted and issued, the board of county commis-

sioners shall grant and issue renewals thereof upon application of the

license holder, if the license holder is qualified to receive the same and

the license has not been revoked as provided by law.

(c) An application for a retailer's license shall be verified and upon a

form prepared by the attorney general of the state and shall contain:

(1) The name and residence of the applicant;

(2) the length of time that the applicant has resided within the state

of Kansas;

(3) the particular place of business for which a license is desired;

(4) the name of the owner of the premises upon which the place of

business is located; and

(5) a statement that the applicant is a citizen of the United States and

not less than 21 years of age and that the applicant has not within two

years immediately preceding the date of making application been con-

victed of a felony, any crime involving moral turpitude, drunkenness, driv-

ing a motor vehicle while under the influence of intoxicating liquor or

violation of any other intoxicating liquor law of any state or of the United

States.

(d) In addition to the fee provided by subsection (e), each application

for a retailer's license to sell cereal malt beverages for consumption on

the licensed premises shall be accompanied by a fee as follows:

(1) For licensure of a place of business other than a railway car, a fee

of not less than $25 nor more than $200, as prescribed by the board of

county commissioners or the governing body of the city, as the case may

be; and

(2) for licensure to sell on railway cars, a fee of $100.

(e) Each applicant for a retailer's license or renewal of such a license

shall submit to the director a copy of the completed application for such

license or license renewal, together with a fee of $25. Upon receipt of

such application, the director shall authorize a state stamp to be affixed

to the license. No such stamp shall be affixed to any license except such

stamps as provided by the director and no retailer's license shall be issued

or renewed unless such stamp has first been affixed thereto.

(f) The director shall remit all fees collected by the director to the

state treasurer in accordance with the provisions of K.S.A. 75-4215, and

amendments thereto all fees collected by the director hereunder,. Upon

receipt of each such remittance, the state treasurer shall deposit the entire

amount in the state treasury and the state treasurer shall credit the same

to the credit of the state general fund, except that the director may provide

for the deposit in the cereal malt beverage tax refund fund of such

amounts as necessary for the refund of any license fees collected here-

under.

(g) The board of county commissioners of the several counties or the

governing body of a city shall issue a license upon application duly made

as otherwise provided for herein, to any retailer engaged in business in

such county or city and qualified to receive such license, to sell only cereal

malt beverages in original and unopened containers, and not for con-

sumption on the premises. The annual license fee for such license, which

shall be in addition to the fee provided by subsection (e), shall be not less

than $25 nor more than $50.

(h) No license issued under this act shall be transferable.

Sec. 134. K.S.A. 44-324 is hereby amended to read as follows: 44-

324. (a) Any proceeding by one or more employees to assert any claim

arising under or pursuant to this act may be brought in any court of

competent jurisdiction.

(b) Whenever the secretary determines under K.S.A. 44-322a, and

amendments thereto, that an employee has a valid claim for unpaid wages

and determines that the amount of the claim is less than $10,000, the

secretary, upon the written request of the employee, shall take an assign-

ment of the claim in trust for such employee and shall take action appro-

priate to enforce or defend such claim. Whenever the secretary deter-

mines under K.S.A. 44-322a, and amendments thereto, that an employee

has a valid claim for unpaid wages and determines that the amount of the

claim is equal to or greater than $10,000, the secretary, upon the written

request of the employee, may take an assignment of the claim in trust for

such employee and if the assessment is taken, shall take action appropriate

to enforce or defend such claim. With the written consent of the assignor,

the secretary may settle or adjust any claim assigned pursuant to this

subsection. Whenever the secretary takes an assignment of a claim in trust

for an employee under this section, the secretary shall charge and collect

a fee therefor which fee shall be fixed by rules and regulations adopted

by the secretary. The fee fixed by rules and regulations shall be in an

amount of not more than $25 per claim assigned under this section.

(c) If the secretary prevails on behalf of the employee, the court shall

award a judgment to the agency in an amount equal to the cost of rea-

sonable attorney fees for such action.

(d) There is hereby created the wage claims assignment fee fund.

The secretary shall remit all moneys received for assignment and attorney

fees charged and collected under this section to the state treasurer at

least monthly in accordance with the provisions of K.S.A. 75-4215, and

amendments thereto. Upon receipt of each such remittance, the state

treasurer shall deposit the entire amount thereof in the state treasury.

Twenty percent of each such deposit shall be credited to the state general

fund and the balance shall be credited to the wage claims assignment fee

fund. All expenditures from the wage claims assignment fee fund shall

be made in accordance with appropriation acts upon warrants of the di-

rector of accounts and reports issued pursuant to vouchers approved by

the secretary or by a person or persons designated by the secretary.

Sec. 135. K.S.A. 44-411 is hereby amended to read as follows: 44-

411. All money or moneys received by or for the secretary of human

resources from fees under this act shall be remitted to the state treasurer

by the secretary at least monthly in accordance with the provisions of

K.S.A. 75-4215, and amendments thereto. Upon receipt of each such re-

mittance, the state treasurer shall deposit the entire amount thereof in

the state treasury to the credit of the state general fund.

Sec. 136. K.S.A. 44-532 is hereby amended to read as follows: 44-

532. (a) Where the payment of compensation of the employee or the

employee's dependents is insured by a policy or policies, at the expense

of the employer, or the employer is a member of a qualified group-funded

workers compensation pool, the insurer or the qualified group-funded

workers compensation pool shall be subrogated to the rights and duties

under the workers compensation act of the employer so far as appropri-

ate, including the immunities provided by K.S.A. 44-501, and amend-

ments thereto.

(b) Every employer shall secure the payment of compensation to the

employer's employees by insuring in one of the following ways: (1) By

insuring and keeping insured the payment of such compensation with an

insurance carrier authorized to transact the business of workers compen-

sation insurance in the state of Kansas; (2) by showing to the director that

the employer carries such employer's own risk and is what is known as a

self-insurer and by furnishing proof to the director of the employer's

financial ability to pay such compensation for the employer's self; (3) by

maintaining a membership in a qualified group-funded workers compen-

sation pool. The cost of carrying such insurance or risk shall be paid by

the employer and not the employee.

(c) The knowing and intentional failure of an employer to secure the

payment of workers compensation to the employer's employees as re-

quired in subsection (b) of this section is a class A misdemeanor.

(d) In addition, whenever the director has reason to believe that any

employer has engaged or is engaging in the knowing and intentional fail-

ure to secure the payment of workers compensation to the employer's

employees as required in subsection (b) of this section, the director shall

issue and serve upon such employer a statement of the charges with

respect thereto and shall conduct a hearing in accordance with the Kansas

administrative procedure act, wherein the employer may be liable to the

state for a civil penalty in an amount equal to twice the annual premium

the employer would have paid had such employer been insured or

$25,000, whichever amount is greater.

(e) The director shall not assess such a fine against a self-employed

subcontractor for failure of the subcontractor to secure compensation for

the subcontractor personally, however, the director shall enforce the pro-

visions of this section for failure of the subcontractor to secure compen-

sation for any other employee of the subcontractor as otherwise provided

by law.

(f) Any civil penalty imposed or final action taken under this section

shall be subject to review in accordance with the act for judicial review

of agency actions in the district court of Shawnee county.

(g) All moneys received under this section for costs assessed or mon-

etary penalties imposed shall be deposited remitted to the state treasurer

in accordance with the provisions of K.S.A. 75-4215, and amendments

thereto. Upon receipt of each such remittance, the state treasurer shall

deposit the entire amount in the state treasury and credited to the credit

of the workers compensation fund.

(h) (1) Every insurance carrier writing workers' workers compensa-

tion insurance for any employment covered under the workers compen-

sation act shall file, with the director or the director's designee, written

notice of the issuance, nonrenewal or cancellation of a policy or contract

of insurance, or any endorsement, providing workers compensation cov-

erage, within 10 days after such issuance, nonrenewal or cancellation.

Every such insurance carrier shall file, with the director, written notice

of all such policies, contracts and endorsements in force on the effective

date of this act.

(2) Every employer covered by the workers compensation act who is

a qualified self-insurer shall give written notice to the director or the

director's designee, if such employer changes from a self-insurer status

to insuring through an insurance carrier or by maintaining a membership

in a qualified group-funded workers compensation pool, such notice to

be given within 10 days after the effective date of such change. Every

self-insurer shall file with the director annually a report verifying the

employer's continuing ability to pay compensation to the employer's em-

ployees.

(3) Every employer covered by the workers compensation act who is

a member of a qualified group-funded workers compensation pool shall

give written notice to the director or the director's designee, if such em-

ployer changes from a group-funded workers compensation pool to in-

suring through an insurance carrier or becoming a self-insurer, such no-

tice to be given within 10 days after the effective date of such change.

(4) The mailing of any written notice or report required by this sub-

section (d) in a stamped envelope within the prescribed time shall comply

with the requirements of this subsection.

(5) The director shall provide by regulation for the forms of written

notices and reports required by this subsection (d).

(i) As used in this section, ``qualified group-funded workers compen-

sation pool'' means any qualified group-funded workers compensation

pool under K.S.A. 44-581 through 44-591, and amendments thereto, or

any group-funded pool under the Kansas municipal group-funded pool

act which includes workers compensation and employers' liability under

the workers compensation act.

(j) A private firm shall not be eligible to apply to become a self-insurer

unless it has been in continuous operation for at least five years or is

purchasing an existing self-insured Kansas firm, plant or facility and the

operation of the purchased firm, plant or facility: (1) Has been in contin-

uous operation in Kansas for at least 10 years; (2) has generated an after-

tax profit of at least $1,000,000 annually for the preceding three consec-

utive years; and (3) has a ratio of debt to equity of not greater than 3.5

to 1. As used in this subsection, ``debt'' means the sum of long-term

borrowing maturing in excess of one year plus the current portion of long-

term borrowing plus short-term financial institution borrowing plus com-

mercial paper borrowing, and ``equity'' means the sum of the book value

of stock plus paid-in capital plus retained earnings. The method for cal-

culating the amount of security required of self-insureds shall be reviewed

by an actuary every five years, beginning in fiscal year 1997. The costs for

these actuarial studies shall be paid from the workers compensation fee

fund.

(k) A corporation or other entity whose current identity is attributable

to a merger or other transformation whereby the whole or a substantial

part of a previous entity's assets and income have been transferred to it,

and its liabilities have not increased beyond the financial review require-

ments of the director, which qualified under its previous identity as a self-

insurer under other provisions of this statute, and amendments thereto,

may apply for renewal as a self-insurer under its new name. The director

may grant the application for renewal if satisfied that the new entity meets

all necessary financial criteria for renewal that would have been applied

to the previous self-insured entity. An application under these provisions

shall be limited to an entity seeking renewal based upon the prior self-

insured status of another entity or entities.

Sec. 137. K.S.A. 44-566a is hereby amended to read as follows: 44-

566a. (a) There is hereby created in the state treasury the workers com-

pensation fund. The commissioner of insurance shall be responsible for

administering the workers compensation fund, and all payments from the

workers compensation fund shall be upon warrants of the director of

accounts and reports issued pursuant to vouchers approved by the com-

missioner of insurance or a person or persons designated by the com-

missioner. The commissioner of insurance annually shall report to the

governor and the legislature the receipts and disbursements from the

workers compensation fund during the preceding fiscal year.

(b) (1) On June 1 of each year, the commissioner of insurance shall

impose an assessment against all insurance carriers, self-insurers and

group-funded workers compensation pools insuring the payment of com-

pensation under the workers compensation act, and the same shall be due

and payable to the commissioner on the following July 1, the proceeds of

which shall be credited to the workers compensation fund. The total

amount of each such assessment shall be equal to an amount sufficient,

in the opinion of the commissioner of insurance, to pay all amounts, in-

cluding attorney fees and costs, which may be required to be paid from

such fund during the current fiscal year, less the amount of the estimated

unencumbered balance in the workers compensation fund as of the June

30 immediately preceding the date the assessment is due and payable

under this section. The total amount of each such assessment shall be

apportioned among those upon whom it is imposed, such that each is

assessed an amount that bears the same relation to such total assessment

as the amount of money paid or payable in workers compensation claims

by such insurance carrier, self-insurer or group-funded workers compen-

sation pool in the immediately preceding calendar year bears to all such

claims paid or payable during such calendar year. The commissioner of

insurance may establish experience-based rates of assessments under this

subsection and make adjustments in the assessments imposed under this

subsection based on the success of accident prevention programs under

K.S.A. 44-5,104, and amendments thereto, and other employer safety

programs.

(2) The commissioner of insurance shall remit all moneys received

by or for such commissioner under this subsection to the state treasurer

in accordance with the provisions of K.S.A. 75-4215, and amendments

thereto. Upon receipt of any each such remittance, the state treasurer

shall deposit the entire amount thereof in the state treasury to the credit

of the workers compensation fund.

(c) (1) Whenever the workers compensation fund may be made lia-

ble for the payment of any amounts in proceedings under the workers

compensation act, the commissioner of insurance, in the capacity of ad-

ministrator of such fund, shall be impleaded in such proceedings and shall

represent and defend the workers compensation fund. The commissioner

of insurance shall be deemed impleaded in any such proceedings when-

ever written notice of the proceedings setting forth the nature of the

liability asserted against the workers compensation fund, is given to the

commissioner of insurance. The commissioner of insurance may be made

a party in this manner by any party to the proceedings. A copy of the

written notice shall be given to the director and to all other parties to the

proceedings.

(2) The administrative law judge shall dismiss the workers compen-

sation fund from any proceeding where the administrative law judge has

determined that there is insufficient evidence to indicate involvement by

the workers compensation fund.

(3) In any case in which the workers compensation fund has been

impleaded by the employer or insurance carrier and where an award has

been entered deciding all of the issues in the employee's claim against

the employer, but not deciding the issues between the employer and the

fund, the fund may file an application with the administrative law judge

requesting that the fund be dismissed from the case with prejudice. The

employer shall have a period of six months from the filing of the appli-

cation in which to complete the employer's evidence on the fund issues

and submit the case to the administrative law judge for decision. The

fund shall then have a period of 60 days after the submission of the

employer's evidence to submit its own evidence concerning the fund is-

sues in the case. If the employer fails to do so, the administrative law

judge shall dismiss the fund from the case with prejudice on the judge's

own motion.

(d) The commissioner of insurance, in the capacity of administrator

of the workers compensation fund, may make settlements of any amounts

which may be payable from the workers compensation fund with regard

to any claim under the workers compensation act, subject to the approval

of the director.

(e) The workers compensation fund shall be liable for:

(1) Payment of awards to handicapped employees in accordance with

the provisions of K.S.A. 44-569, and amendments thereto, for claims aris-

ing prior to July 1, 1994;

(2) payment of workers compensation benefits to an employee who

is unable to receive such benefits from such employee's employer under

the conditions prescribed by K.S.A. 44-532a, and amendments thereto;

(3) reimbursement of an employer or insurance carrier pursuant to

the provisions of K.S.A. 44-534a, and amendments thereto, subsection

(d) of K.S.A. 44-556, and amendments thereto, subsection (c) of K.S.A.

44-569, and amendments thereto, and K.S.A. 44-569a, and amendments

thereto;

(4) payment of the actual expenses of the commissioner of insurance

which are incurred for administering the workers compensation fund,

subject to the provisions of appropriations acts; and

(5) any other payments or disbursements provided by law.

(f) If it is determined that the workers compensation fund is not liable

as described in subsection (e), attorney fees incurred by the workers com-

pensation fund may be assessed against the party who has impleaded the

workers compensation fund other than impleadings pursuant to K.S.A.

44-532a, and amendments thereto.

(g) The commissioner of insurance shall provide for the implemen-

tation of the workers compensation fund as provided in this section and

shall be responsible for ensuring the fund's adequacy to meet and pay

claims awarded against it.

Sec. 138. K.S.A. 44-570 is hereby amended to read as follows: 44-

570. (a) In the event that subsection (d) of K.S.A. 44-510b, and amend-

ments thereto, is inapplicable, every employer in the state of Kansas op-

erating a trade or business under the provisions of the workers

compensation act shall pay within 30 days after the award is made the

sum of $18,500 to the commissioner of insurance in every case where

death results from the accident and where there are no dependents who

are entitled to compensation under the workers compensation act.

(b) The commissioner of insurance shall remit all moneys received

under this section to the state treasurer in accordance with the provisions

of K.S.A. 75-4215, and amendments thereto. Upon receipt of any each

such remittance, the state treasurer shall deposit the entire amount

thereof in the state treasury to the credit of the workers' compensation

fund.

(c) Upon rendering an award under this section, the director shall

transmit immediately a certified copy thereof to the commissioner of

insurance. In case payment is, or has been made, under the provisions of

this section and dependency later is shown, or if payment is made by

mistake or inadvertence, or under such circumstances that justice re-

quires a refund thereof, the commissioner of insurance is hereby author-

ized to refund such payment to the employer, or if insured, to the em-

ployer's insurance carrier.

Sec. 139. K.S.A. 44-575 is hereby amended to read as follows: 44-

575. (a) As used in K.S.A. 44-575 through 44-580, and amendments

thereto, ``state agency'' means the state, or any department or agency of

the state, but not including the Kansas turnpike authority, the university

of Kansas hospital authority, any political subdivision of the state or the

district court with regard to district court officers or employees whose

total salary is payable by counties.

(b) For the purposes of providing for the payment of compensation

for claims arising on and after July 1, 1974, and all other amounts required

to be paid by any state agency as a self-insured employer under the work-

ers compensation act and any amendments or additions thereto, there is

hereby established the state workers compensation self-insurance fund in

the state treasury. The name of the state workmen's compensation self-

insurance fund is hereby changed to the state workers compensation self-

insurance fund. Whenever the state workmen's compensation self-insur-

ance fund is referred to or designated by any statute, contract or other

document, such reference or designation shall be deemed to apply to the

state workers compensation self-insurance fund.

(c) The state workers compensation self-insurance fund shall be liable

to pay: (1) All compensation for claims arising on and after July 1, 1974,

and all other amounts required to be paid by any state agency as a self-

insured employer under the workers compensation act and any amend-

ments or additions thereto; (2) the amount that all state agencies are liable

to pay of the ``carrier's share of expense'' of the administration of the

office of the director of workers' compensation as provided in K.S.A. 74-

712 through 74-719, and amendments thereto, for each fiscal year; (3) all

compensation for claims remaining from the self-insurance program

which existed prior to July 1, 1974, for institutional employees of the

division of mental health and retardation services of the department of

social and rehabilitation services; (4) the cost of administering the state

workers compensation self-insurance fund including the defense of such

fund and any costs assessed to such fund in any proceeding to which it is

a party; and (5) the cost of establishing and operating the state workplace

health and safety program under subsection (f). For the purposes of

K.S.A. 44-575 through 44-580, and amendments thereto, all state agen-

cies are hereby deemed to be a single employer whose liabilities specified

in this section are hereby imposed solely upon the state workers com-

pensation self-insurance fund and such employer is hereby declared to

be a fully authorized and qualified self-insurer under K.S.A. 44-532, and

amendments thereto, but such employer shall not be required to make

any reports thereunder.

(d) The secretary of administration shall administer the state workers

compensation self-insurance fund and all payments from such fund shall

be upon warrants of the director of accounts and reports issued pursuant

to vouchers approved by the secretary of administration or a person or

persons designated by the secretary. The director of accounts and reports

may issue warrants pursuant to vouchers approved by the secretary for

payments from the state workers compensation self-insurance fund not-

withstanding the fact that claims for such payments were not submitted

or processed for payment from money appropriated for the fiscal year in

which the state workers compensation self-insurance fund first became

liable to make such payments.

(e) The secretary of administration shall remit all moneys received by

or for the secretary in the capacity as administrator of the state workers

compensation self-insurance fund, to the state treasurer in accordance

with the provisions of K.S.A. 75-4215, and amendments thereto. Upon

receipt of any each such remittance, the state treasurer shall deposit the

entire amount thereof in the state treasury to the credit of the state work-

ers compensation self-insurance fund.

(f) There is hereby established the state workplace health and safety

program within the state workers compensation self-insurance program

of the department of administration. The secretary of administration shall

implement and administer the state workplace health and safety program

for state agencies. The state workplace health and safety program shall

include, but not be limited to:

(1) Workplace health and safety hazard surveys in all state agencies,

including onsite interviews with employees;

(2) workplace health and safety hazard prevention services, including

inspection and consultation services;

(3) procedures for identifying and controlling workplace hazards;

(4) development and dissemination of health and safety informational

materials, plans, rules and work procedures; and

(5) training for supervisors and employees in healthful and safe work

practices.

Sec. 140. K.S.A. 44-587 is hereby amended to read as follows: 44-

587. The expense of the administration of the group-funded workers'

compensation pools shall be financed in the following manner:

(a) There is hereby created in the state treasury a fund to be called

the group-funded workers' compensation pools fee fund. All amounts

which are required to be paid from the group compensation pools fee

fund for the operating expenditures incident to the administration of the

group-funded workers' compensation pools shall be paid from the group-

funded workers' compensation pools fee fund. The commissioner of in-

surance shall be responsible for administering the group-funded workers'

compensation pools fee fund and all payments from the fund shall be

upon warrants of the director of accounts and reports issued pursuant to

vouchers approved by the commissioner of insurance or a person or per-

sons designated by the commissioner.

(b) The commissioner of insurance shall estimate as soon as practical

after January 1 of each year the expenses necessary for the administration

of the group-funded workers' compensation pools for the fiscal year be-

ginning on July 1 thereafter. Not later than June 1 of each year, the

commissioner of insurance shall notify all such group-funded workers'

compensation pools of the amount of each assessment imposed under

this subsection on such group-funded workers' compensation pools and

the same shall be due and payable to the commissioner on the July 1

following.

(c) The commissioner of insurance shall remit all moneys received by

or for such commissioner under this section to the state treasurer in

accordance with the provisions of K.S.A. 75-4215, and amendments

thereto. Upon receipt of any each such remittance, the state treasurer

shall deposit the entire amount thereof in the state treasury to the credit

of the group-funded workers' compensation pools fee fund.

Sec. 141. K.S.A. 44-712 is hereby amended to read as follows: 44-

712. (a) Establishment and control. There is hereby established as a spe-

cial fund in the state treasury, separate and apart from all public moneys

or funds of this state, an employment security fund, which shall be ad-

ministered by the secretary as provided in this act. This fund shall consist

of: (1) All contributions collected under this act; (2) interest earned upon

any moneys in the fund; (3) all moneys credited to this state's account in

the federal unemployment trust fund, pursuant to section 903 of the social

security act, 42 U.S.C.A. § 1103, as amended; (4) any property or secu-

rities acquired through the use of moneys belonging to the fund, and all

other moneys received for the fund from any other source; (5) all earnings

of such property or securities. All moneys in this fund shall be mingled

and undivided.

(b) Accounts and deposits. The state treasurer shall be ex officio cus-

todian of the fund. Payments from the fund, and for the purposes of this

act deposits with the secretary of the treasury of the United States shall

not be deemed to be payments from the fund, shall be made upon war-

rants drawn upon the state treasurer by the director of accounts and

reports upon vouchers approved by the secretary. There shall be main-

tained within the fund three separate accounts: (1) A clearing account;

(2) an unemployment trust fund account, and (3) a benefit account. All

money payable to the fund upon receipt thereof by the secretary, shall

be forwarded remitted to the state treasurer, who shall immediately in

accordance with the provisions of K.S.A. 75-4215, and amendments

thereto. Upon receipt of each such remittance, the state treasurer shall

deposit them the entire amount in the state treasury to the credit of the

clearing account of the fund. Refunds payable pursuant to K.S.A. 44-717,

and amendments thereto, may be paid from the clearing account of the

fund by warrants drawn by the director of accounts and reports upon the

state treasurer upon vouchers approved by the secretary. After clearance

thereof, all other moneys in the clearing account of the fund shall be

immediately deposited with the secretary of the treasury of the United

States of America to the credit of the account of this state in the federal

unemployment trust fund established and maintained pursuant to section

904 of the social security act, 42 U.S.C.A.§ 1104, as amended, any pro-

visions of law in this state relating to the deposit, administration, release,

or disbursement of moneys in the possession or custody of this state to

the contrary notwithstanding. The benefit account of the fund shall con-

sist of all moneys requisitioned from this state's account in the federal

unemployment trust fund. Except as herein otherwise provided, moneys

in the clearing and benefit accounts of the fund may be deposited by the

state treasurer in any bank or public depository as is now provided by law

for the deposit of general funds of the state, but no public deposit insur-

ance charge or premium shall be paid out of the fund. Moneys in the

clearing and benefit accounts of the fund shall not be commingled with

other state funds and shall be maintained in separate bank accounts.

(c) Withdrawals. Moneys shall be requisitioned from this state's ac-

count in the federal unemployment trust fund solely for the payment of

benefits and in accordance with the provisions of this act and the rules

and regulations adopted by the secretary, except that moneys credited to

this state's account pursuant to section 903 of the social security act, 42

U.S.C.A. § 1103, as amended, shall be used exclusively as provided in

subsection (d) of this section. The secretary shall from time to time req-

uisition from the federal unemployment trust fund such amounts, not

exceeding the amounts standing to its account therein, as deemed nec-

essary for the payment of benefits for a reasonable future period. Upon

receipt thereof the state treasurer shall deposit such moneys in the benefit

account of the fund and warrants for the payment of benefits shall be

charged solely against such benefit account of the fund. Expenditures of

such moneys in the benefit account and refunds from the clearing account

of the fund shall not be subject to any provisions of law requiring specific

appropriations. Any balance of moneys requisitioned from the federal

unemployment trust fund which remains unclaimed or unpaid in the ben-

efit account of the fund after the expiration of the period for which such

sums were requisitioned shall either be deducted from estimates for, and

may be utilized for the payment of benefits during succeeding periods,

or, in the discretion of the secretary shall be directed to be redeposited

with the secretary of the treasury of the United States of America, to the

credit of this state's account in the federal unemployment trust fund, as

provided in subsection (b) of this section. All balances accrued from un-

paid or canceled warrants issued pursuant to this section, notwithstanding

the provisions of K.S.A. 10-812, and amendments thereto, shall remain

in the benefit account of the fund, and be disbursed in accordance with

the provisions of this act relating to such account.

(d) Administrative use. (1) Money credited to the account of this state

in the federal unemployment trust fund by the secretary of the treasury

of the United States of America, pursuant to section 903 of the social

security act, 42 U.S.C.A. § 1103, as amended, may be requisitioned and

used for the payment of expenses incurred in the administration of this

act pursuant to a specific appropriation by the legislature, if expenses are

incurred and the money is requisitioned after the enactment of an ap-

propriation law which: (A) Specifies the purposes for which such money

is appropriated and the amounts appropriated therefor, (B) limits the

period within which such money may be obligated to a period ending not

more than two years after the date of the enactment of the appropriation

law, and (C) limits the amount which may be obligated during a twelve-

month period beginning on July 1 and ending on the next June 30 to an

amount which does not exceed the amount by which (i) the aggregate of

the amounts credited to the account of this state pursuant to section 903

of the social security act, 42 U.S.C.A.§ 1103, as amended, (ii) the aggre-

gate of the amounts obligated pursuant to this subsection and amounts

paid out for benefits and charged against the amounts credited to the

account of this state. For the purposes of this subsection, amounts obli-

gated during any such twelve-month period shall be charged against

equivalent amounts which were first credited and which are not already

so charged.

(2) Money credited to the account of this state pursuant to section

903 of the social security act, 42 U.S.C.A. § 1103, as amended, may not

be withdrawn or obligated except for the payment of benefits and for the

payment of expenses for the administration of this act and of public em-

ployment offices pursuant to this subsection (d).

(3) Money appropriated as provided by this subsection (d) for the

payment of expenses of administration shall be requisitioned as needed

for the payment of obligations incurred under such appropriation and,

upon requisition shall be deposited in the state treasury to the credit of

the employment security administration fund from which such payments

shall be made. Money so deposited and credited shall, until expended,

remain a part of the federal unemployment trust fund, and, if it will not

be expended, shall be returned promptly to the account of this state in

the federal unemployment trust fund.

(4) Notwithstanding paragraph (1), money credited with respect to

federal fiscal years 1999, 2000 and 2001, shall be used solely for the

administration of the UC program, and such money shall not otherwise

be subject to the requirements of paragraph (1) when appropriated by

the legislature.

(e) Management of funds upon discontinuance of federal unemploy-

ment trust fund. The provisions of subsections (a), (b), (c) and (d) of this

section, to the extent that they relate to the federal unemployment trust

fund, shall be operative only so long as such unemployment trust fund

continues to exist and so long as the secretary of the treasury of the United

States of America continues to maintain for this state a separate book

account of all funds deposited therein by this state for benefit purposes,

together with this state's proportionate share of the earnings of such un-

employment trust fund, from which no other state is permitted to make

withdrawals. If and when such unemployment trust fund ceases to exist,

or such separate book account is no longer maintained, all moneys, prop-

erties or securities therein, belonging to the employment security fund

of this state, shall be transferred to the state treasurer, to be administered

by the secretary as a trust fund for the purpose of paying benefits under

this act, and the director of investments upon the direction of the sec-

retary shall have authority to hold, invest, transfer, sell, deposit, and re-

lease such moneys, and any properties, securities, or earnings acquired

as an incident to such administration.

Sec. 142. K.S.A. 44-714 is hereby amended to read as follows: 44-

714. (a) Duties and powers of secretary. It shall be the duty of the sec-

retary to administer this act and the secretary shall have power and au-

thority to adopt, amend or revoke such rules and regulations, to employ

such persons, make such expenditures, require such reports, make such

investigations, and take such other action as the secretary deems neces-

sary or suitable to that end. Such rules and regulations may be adopted,

amended, or revoked by the secretary only after public hearing or op-

portunity to be heard thereon. The secretary shall determine the organ-

ization and methods of procedure in accordance with the provisions of

this act, and shall have an official seal which shall be judicially noticed.

The secretary shall make and submit reports for the administration of the

employment security law in the manner prescribed by K.S.A. 75-3044 to

75-3046, inclusive, and 75-3048, and amendments thereto. Whenever the

secretary believes that a change in contribution or benefit rates will be-

come necessary to protect the solvency of the fund, the secretary shall

promptly so inform the governor and the legislature, and make recom-

mendations with respect thereto.

(b) Publication. The secretary shall cause to be printed for distribu-

tion to the public the text of this act, the secretary's rules and regulations

and any other material the secretary deems relevant and suitable and shall

furnish the same to any person upon application therefor.

(c) Personnel. (1) Subject to other provisions of this act, the secretary

is authorized to appoint, fix the compensation, and prescribe the duties

and powers of such officers, accountants, deputies, attorneys, experts and

other persons as may be necessary in carrying out the provisions of this

act. The secretary shall classify all positions and shall establish salary

schedules and minimum personnel standards for the positions so classi-

fied. The secretary shall provide for the holding of examinations to de-

termine the qualifications of applicants for the positions so classified, and,

except to temporary appointments not to exceed six months in duration,

shall appoint all personnel on the basis of efficiency and fitness as deter-

mined in such examinations. The secretary shall not appoint or employ

any person who is an officer or committee member of any political party

organization or who holds or is a candidate for a partisan elective public

office. The secretary shall adopt and enforce fair and reasonable rules

and regulations for appointment, promotions and demotions, based upon

ratings of efficiency and fitness and for terminations for cause. The sec-

retary may delegate to any such person so appointed such power and

authority as the secretary deems reasonable and proper for the effective

administration of this act, and may in the secretary's discretion bond any

person handling moneys or signing checks under the employment security

law.

(2) No employee engaged in the administration of the employment

security law shall directly or indirectly solicit or receive or be in any man-

ner concerned with soliciting or receiving any assistance, subscription or

contribution for any political party or political purpose, other than solic-

iting and receiving contributions for such person's personal campaign as

a candidate for a nonpartisan elective public office, nor shall any employee

engaged in the administration of the employment security law participate

in any form of political activity except as a candidate for a nonpartisan

elective public office, nor shall any employee champion the cause of any

political party or the candidacy of any person other than such person's

own personal candidacy for a nonpartisan elective public office. Any em-

ployee engaged in the administration of the employment security law who

violates these provisions shall be immediately discharged. No person shall

solicit or receive any contribution for any political purpose from any em-

ployee engaged in the administration of the employment security law and

any such action shall be a misdemeanor and shall be punishable by a fine

of not less than $100 nor more than $1,000 or by imprisonment in the

county jail for not less than 30 days nor more than six months, or both.

(d) Advisory councils. The secretary shall appoint a state employment

security advisory council and may appoint local advisory councils, com-

posed in each case of men and women which shall include an equal num-

ber of employer representatives and employee representatives who may

fairly be regarded as representative because of their vocation, employ-

ment, or affiliations, and of such members representing the general public

as the secretary may designate. Each such member shall serve a four-year

term. On July 1, 1996, the secretary shall designate term lengths for

seated members of the council. One-half of the seated members repre-

senting employers, 1/2 of the seated members representing employees and

1/2 of the members representing the general public shall be designated

by the secretary to serve two-year terms. The remaining seated members

of the council shall be designated to serve four-year terms. When the

term of any member expires, the secretary shall appoint the member's

successor to a four-year term. If a position on the council becomes vacant

prior to the expiration of the vacating member's term, the secretary may

appoint an otherwise qualified individual to fulfill the remainder of such

unexpired term. Such councils shall aid the secretary in formulating pol-

icies and discussing problems related to the administration of this act and

in securing impartiality and freedom from political influence in the so-

lution of such problems. Members of the state employment security ad-

visory council attending meetings of such council, or attending a subcom-

mittee meeting thereof authorized by such council, shall be paid amounts

provided in subsection (e) of K.S.A. 75-3223, and amendments thereto.

Service on the state employment security advisory council shall not in and

of itself be sufficient to cause any member of the state employment se-

curity advisory council to be classified as a state officer or employee.

(e) Employment stabilization. The secretary, with the advice and aid

of the secretary's advisory councils and through the appropriate divisions

of the department of human resources, shall take all appropriate steps to

reduce and prevent unemployment; to encourage and assist in the adop-

tion of practical methods of vocational training, retraining and vocational

guidance; to investigate, recommend, advise, and assist in the establish-

ment and operation, by municipalities, counties, school districts and the

state, of reserves for public works to be used in time of business depres-

sion and unemployment; to promote the reemployment of unemployed

workers throughout the state in every other way that may be feasible; and

to these ends to carry on and publish the results of investigations and

research studies.

(f) Records and reports. Each employing unit shall keep true and

accurate work records, containing such information as the secretary may

prescribe. Such records shall be open to inspection and subject to being

copied by the secretary or the secretary's authorized representatives at

any reasonable time and shall be preserved for a period of five years from

the due date of the contributions or payments in lieu of contributions for

the period to which they relate. Only one audit shall be made of any

employer's records for any given period of time. Upon request the em-

ploying unit shall be furnished a copy of all findings by the secretary or

the secretary's authorized representatives, resulting from such audit. A

special inquiry or special examination made for a specific and limited

purpose shall not be considered to be an audit for the purpose of this

subsection. The secretary may require from any employing unit any sworn

or unsworn reports, with respect to persons employed by it, which the

secretary deems necessary for the effective administration of this act.

Information thus obtained or obtained from any individual pursuant to

the administration of this act shall be held confidential, except to the

extent necessary for the proper presentation of a claim by an employer

or employee under the employment security law, and shall not be pub-

lished or be open to public inspection, other than to public employees in

the performance of their public duties, in any manner revealing the in-

dividual's or employing unit's identity. Any claimant or employing unit or

their representatives at a hearing before an appeal tribunal or the sec-

retary shall be supplied with information from such records to the extent

necessary for the proper presentation of the claim. The transcript made

at any such benefits hearing shall not be discoverable or admissible in

evidence in any other proceeding, hearing or determination of any kind

or nature. In the event of any appeal of a benefits matter, the transcript

shall be sealed by the hearing officer and shall be available only to any

reviewing authority who shall reseal the transcript after making a review

of it. In no event shall such transcript be deemed a public record. Nothing

in this subsection (f) shall be construed to prohibit disclosure of any in-

formation obtained under the employment security law, including hearing

transcripts, upon request of either of the parties, for the purpose of ad-

ministering or adjudicating a claim for benefits under the provisions of

any other state program, except that any party receiving such information

shall be prohibited from further disclosure and shall be subject to the

same duty of confidentiality otherwise imposed by this subsection (f) and

shall be subject to the penalties imposed by this subsection (f) for viola-

tions of such duty of confidentiality. Nothing in this subsection (f) shall

be construed to prohibit disclosure of any information obtained under

the employment security law, including hearing transcripts, for use as

evidence in open court in a criminal prosecution for perjury at an appeal

hearing under the employment security law or for any criminal violation

of the employment security law. If the secretary or any officer or em-

ployee of the secretary violates any provisions of this subsection (f), the

secretary or such officer or employee shall be fined not less than $20 nor

more than $200 or imprisoned for not longer than 90 days, or both. Orig-

inal records of the agency and original paid benefit warrants of the state

treasurer may be made available to the employment security agency of

any other state or the federal government to be used as evidence in pros-

ecution of violations of the employment security law of such state or

federal government. Photostatic copies of such records shall be made and

where possible shall be substituted for original records introduced in ev-

idence and the originals returned to the agency.

(g) Oaths and witnesses. In the discharge of the duties imposed by

the employment security law, the chairperson of an appeal tribunal, an

appeals referee, the secretary or any duly authorized representative of

the secretary shall have power to administer oaths and affirmations, take

depositions, issue interrogatories, certify to official acts, and issue sub-

poenas to compel the attendance of witnesses and the production of

books, papers, correspondence, memoranda and other records deemed

necessary as evidence in connection with a disputed claim or the admin-

istration of the employment security law.

(h) Subpoenas, service. Upon request, service of subpoenas shall be

made by the sheriff of a county within that county, by the sheriff's deputy,

by any other person who is not a party and is not less than 18 years of

age or by some person specially appointed for that purpose by the sec-

retary of human resources or the secretary's designee. A person not a

party as described above or a person specially appointed by the secretary

or the secretary's designee to serve subpoenas may make service any place

in the state. The subpoena shall be served as follows:

(1) Individual. Service upon an individual, other than a minor or in-

capacitated person, shall be made (A) by delivering a copy of the sub-

poena to the individual personally, (B) by leaving a copy at such individ-

ual's dwelling house or usual place of abode with some person of suitable

age and discretion then residing therein, (C) by leaving a copy at the

business establishment of the employer with an officer or employee of

the establishment, (D) by delivering a copy to an agent authorized by

appointment or by law to receive service of process, but if the agent is

one designated by a statute to receive service, such further notice as the

statute requires shall be given, or (E) if service as prescribed above in

clauses (A), (B), (C) or (D) cannot be made with due diligence, by leaving

a copy of the subpoena at the individual's dwelling house, usual place of

abode or usual business establishment, and by mailing a notice by first-

class mail to the place that the copy has been left.

(2) Corporations and partnerships. Service upon a domestic or for-

eign corporation or upon a partnership or other unincorporated associa-

tion, when by law it may be sued as such, shall be made by delivering a

copy of the subpoena to an officer, partner or resident managing or gen-

eral agent thereof, or by leaving the copy at any business office of the

employer with the person having charge thereof or by delivering a copy

to any other agent authorized by appointment or required by law to re-

ceive service of process, if the agent is one authorized by law to receive

service and, if the law so requires, by also mailing a copy to the employer.

(3) Refusal to accept service. In all cases when the person to be

served, or an agent authorized by such person to accept service of peti-

tions and summonses shall refuse to receive copies of the subpoena, the

offer of the duly authorized process server to deliver copies thereof and

such refusal shall be sufficient service of such subpoena.

(4) Proof of service. (A) Every officer to whom a subpoena or other

process shall be delivered for service within or without the state, shall

make return thereof in writing stating the time, place and manner of

service of such writ and shall sign such officer's name to such return.

(B) If service of the subpoena is made by a person appointed by the

secretary or the secretary's designee to make service, or any other person

described in subsection (h) of this section, such person shall make an

affidavit as to the time, place and manner of service thereof in a form

prescribed by the secretary or the secretary's designee.

(5) Time for return. The officer or other person receiving a subpoena

shall make a return of service promptly and shall send such return to the

secretary or the secretary's designee in any event within 10 days after the

service is effected. If the subpoena cannot be served it shall be returned

to the secretary or the secretary's designee within 30 days after the date

of issue with a statement of the reason for the failure to serve the same.

(i) Subpoenas, enforcement. In case of contumacy by or refusal to

obey a subpoena issued to any person, any court of this state within the

jurisdiction of which the inquiry is carried on or within the jurisdiction

of which such person guilty of contumacy or refusal to obey is found,

resides or transacts business, upon application by the secretary or the

secretary's duly authorized representative, shall have jurisdiction to issue

to such person an order requiring such person to appear before the sec-

retary, or the secretary's duly authorized representative, to produce evi-

dence, if so ordered, or to give testimony relating to the matter under

investigation or in question. Failure to obey such order of the court may

be punished by said court as a contempt thereof. Any person who, without

just cause, shall fail or refuse to attend and testify or to answer any lawful

inquiry or to produce books, papers, correspondence, memoranda or

other records in obedience to the subpoena of the secretary or the sec-

retary's duly authorized representative shall be punished by a fine of not

less than $200 or by imprisonment of not longer than 60 days, or both,

and each day such violation continued shall be deemed to be a separate

offense.

(j) State-federal cooperation. In the administration of this act, the

secretary shall cooperate to the fullest extent consistent with the provi-

sions of this act, with the federal security agency, shall make such reports,

in such form and containing such information as the federal security ad-

ministrator may from time to time require, and shall comply with such

provisions as the federal security administrator may from time to time

find necessary to assure the correctness and verification of such reports;

and shall comply with the regulations prescribed by the federal security

agency governing the expenditures of such sums as may be allotted and

paid to this state under title III of the social security act for the purpose

of assisting in the administration of this act. Upon request therefor the

secretary shall furnish to any agency of the United States charged with

the administration of public works or assistance through public employ-

ment, the name, address, ordinary occupation, and employment status of

each recipient of benefits and such recipient's rights to further benefits

under this act.

(k) Reciprocal arrangements. The secretary shall participate in mak-

ing reciprocal arrangements with appropriate and duly authorized agen-

cies of other states or of the federal government, or both, whereby:

(1) Services performed by an individual for a single employing unit

for which services are customarily performed in more than one state shall

be deemed to be services performed entirely within any one of the states

(A) in which any part of such individual's service is performed, (B) in

which such individual maintains residence, or (C) in which the employing

unit maintains a place of business, provided there is in effect as to such

services, an election, approved by the agency charged with the adminis-

tration of such state's unemployment compensation law, pursuant to

which all the services performed by such individual for such employing

units are deemed to be performed entirely within such state;

(2) service performed by not more than three individuals, on any

portion of a day but not necessarily simultaneously, for a single employing

unit which customarily operates in more than one state shall be deemed

to be service performed entirely within the state in which such employing

unit maintains the headquarters of its business; provided that there is in

effect, as to such service, an approved election by an employing unit with

the affirmative consent of each such individual, pursuant to which service

performed by such individual for such employing unit is deemed to be

performed entirely within such state;

(3) potential rights to benefits accumulated under the employment

compensation laws of one or more states or under one or more such laws

of the federal government, or both, may constitute the basis for the pay-

ments of benefits through a single appropriate agency under terms which

the secretary finds will be fair and reasonable as to all affected interests

and will not result in any substantial loss to the fund;

(4) wages or services, upon the basis of which an individual may be-

come entitled to benefits under an unemployment compensation law of

another state or of the federal government, shall be deemed to be wages

for insured work for the purpose of determining such individual's rights

to benefits under this act, and wages for insured work, on the basis of

which an individual may become entitled to benefits under this act, shall

be deemed to be wages or services on the basis of which unemployment

compensation under such law of another state or of the federal govern-

ment is payable, but no such arrangement shall be entered into unless it

contains provisions for reimbursements to the fund for such of the ben-

efits paid under this act upon the basis of such wages or services, and

provisions for reimbursements from the fund for such of the compensa-

tion paid under such other law upon the basis of wages for insured work,

as the secretary finds will be fair and reasonable as to all affected interests;

and

(5) (A) contributions due under this act with respect to wages for

insured work shall be deemed for the purposes of K.S.A. 44-717, and

amendments thereto, to have been paid to the fund as of the date pay-

ment was made as contributions therefor under another state or federal

unemployment compensation law, but no such arrangement shall be en-

tered into unless it contains provisions for such reimbursements to the

fund of such contributions and the actual earnings thereon as the secre-

tary finds will be fair and reasonable as to all affected interests;

(B) reimbursements paid from the fund pursuant to subsection (l)(4)

of this section shall be deemed to be benefits for the purpose of K.S.A.

44-704 and 44-712, and amendments thereto; the secretary is authorized

to make to other state or federal agencies, and to receive from such other

state or federal agencies, reimbursements from or to the fund, in accord-

ance with arrangements entered into pursuant to the provisions of this

section or any other section of the employment security law;

(C) the administration of this act and of other state and federal un-

employment compensation and public employment service laws will be

promoted by cooperation between this state and such other states and

the appropriate federal agencies in exchanging services and in making

available facilities and information; the secretary is therefore authorized

to make such investigations, secure and transmit such information, make

available such services and facilities and exercise such of the other powers

provided herein with respect to the administration of this act as the sec-

retary deems necessary or appropriate to facilitate the administration of

any such unemployment compensation or public employment service law

and, in like manner, to accept and utilize information, service and facilities

made available to this state by the agency charged with the administration

of any such other unemployment compensation or public employment

service law; and

(D) to the extent permissible under the laws and constitution of the

United States, the secretary is authorized to enter into or cooperate in

arrangements whereby facilities and services provided under this act and

facilities and services provided under the unemployment compensation

law of any foreign government may be utilized for the taking of claims

and the payment of benefits under the employment security law of this

state or under a similar law of such government.

(l) Records available. The secretary may furnish the railroad retire-

ment board, at the expense of such board, such copies of the records as

the railroad retirement board deems necessary for its purposes.

(m) Destruction of records, reproduction and disposition. The sec-

retary may provide for the destruction, reproduction, temporary or per-

manent retention, and disposition of records, reports and claims in the

secretary's possession pursuant to the administration of the employment

security law provided that prior to any destruction of such records, reports

or claims the secretary shall comply with K.S.A. 75-3501 to 75-3514, in-

clusive, and amendments thereto.

(n) Federal cooperation. The secretary may afford reasonable coop-

eration with every agency of the United States charged with administra-

tion of any unemployment insurance law.

(o) The secretary is hereby authorized to fix, charge and collect fees

for copies made of public documents, as defined by subsection (c) of

K.S.A. 45-204, and amendments thereto, by xerographic, thermographic

or other photocopying or reproduction process, in order to recover all or

part of the actual costs incurred, including any costs incurred in certifying

such copies. All moneys received from fees charged for copies of such

documents shall be remitted to the state treasurer at least monthly in

accordance with the provisions of K.S.A. 75-4215, and amendments

thereto. Upon receipt of each such remittance, the state treasurer shall

deposit the entire amount thereof in the state treasury to the credit of

the employment security administration fund. No such fees shall be

charged or collected for copies of documents that are made pursuant to

a statute which requires such copies to be furnished without expense.

Sec. 143. K.S.A. 44-806a is hereby amended to read as follows: 44-

806a. (a) In case any labor organization which is required to file a copy

of its constitution or bylaws or amendments or changes therein under

K.S.A. 44-805, as amended and amendments thereto, or to file an annual

report under K.S.A. 44-806, as amended and amendments thereto, shall

fail or neglect to make such filing at the time prescribed, such labor

organization shall be subject to a civil penalty of one hundred dollars

($100) $100, and, if such labor organization shall not have made such

filing within sixty (60) 60 days thereafter, it shall be subject to an addi-

tional civil penalty of five dollars ($5) $5 per day for each day's omission

after the time limited in said such statutes for making such filing and such

sixty (60) day sixty-day period. Such civil penalties may be recovered by

an action in the name of the state, and all moneys recovered shall be paid

into remitted to the state treasurer in accordance with the provisions of

K.S.A. 75-4215, and amendments thereto. Upon receipt of each such re-

mittance, the state treasurer shall deposit the entire amount in the state

treasury to the credit of the state general fund. Any labor organization

shall have the right to be heard by the secretary of state upon the matter

of determination of the amount of civil penalties due under this section.

For good cause shown, the secretary of state may remit or waive all or

any part of any such civil penalties.

(b) On complaint of the secretary of state that any labor organization

has failed to make the filing required by said statutes, it shall be the duty

of the county or district attorney, or the attorney general, to institute such

action in the district court of Shawnee county, Kansas, or of any county

in which such labor organization has an office.

Sec. 144. K.S.A. 44-812 is hereby amended to read as follows: 44-

812. That All fees collected by the secretary of state hereunder shall be

paid remitted to the state treasurer and credited in accordance with the

provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of

each such remittance, the state treasurer shall deposit the entire amount

in the state treasury to the credit of the state general fund.

Sec. 145. K.S.A. 44-926 is hereby amended to read as follows: 44-

926. (a) The owner or user of a boiler or pressure vessel required by this

act to be inspected by the chief inspector or a deputy inspector shall pay

directly to the chief inspector, upon completion of inspection, inspection

fees fixed by the secretary in accordance with this subsection (a). The

secretary shall fix annually, by rules and regulations, a schedule of fees

for inspections of pressure vessels installed after January 1, 1999, and

boilers by state inspectors and may fix different fees for inspection of

boilers and pressure vessels in the various categories. Such fees shall not

exceed $500 per day for each boiler or pressure vessel inspected.

(b) The owner or user of a boiler or pressure vessel for which an

inspection certificate is to be issued pursuant to subsection (b) of K.S.A.

44-924, and amendments thereto, shall pay directly to the chief inspector,

before issuance of such certificate, a certificate fee fixed by the secretary

by rules and regulations of not to exceed $35.

(c) There is hereby created in the state treasury the boiler inspection

fee fund. The chief inspector shall pay daily to the secretary all moneys

received from the fees established hereunder, and the secretary shall

remit all such moneys to the state treasurer at least monthly in accordance

with the provisions of K.S.A. 75-4215, and amendments thereto. Upon

receipt of any each such remittance, the state treasurer shall deposit the

entire amount thereof in the state treasury. Twenty percent of such in-

spection fees shall be credited to the state general fund and the balance

including all of the certificate fees shall be credited to the boiler inspec-

tion fee fund. All expenditures from the boiler inspection fee fund shall

be made in accordance with appropriation acts upon warrants of the di-

rector of accounts and reports issued pursuant to vouchers approved by

the secretary of human resources or by a person or persons designated

by the secretary.

Sec. 146. K.S.A. 44-1019 is hereby amended to read as follows: 44-

1019. (a) The authority and responsibility for administering this act shall

be in the commission. Any person aggrieved may file a verified complaint

with the commission. Such complaints shall be in writing, shall state the

facts upon which the allegations of a discriminatory housing practice are

based and shall contain such other information and be in such form as

the commission may require. Complaints must be filed within one year

after the alleged discriminatory housing practice occurred, but may be

reasonably and fairly amended at any time. The commission upon its own

initiative or the attorney general may, in like manner, make, sign and file

such complaint. A respondent may file a verified answer to the complaint

against the respondent and with the leave of the commission, which shall

be granted whenever it would be reasonable and fair to do so, may amend

the answer filed by the respondent at any time.

(b) Upon receipt of any such complaint the commission shall serve

notice upon the aggrieved person acknowledging such filing and advising

the aggrieved person of the time limits and choice of forums provided

under this act; and the commission shall within 10 days thereof serve on

the respondent a notice identifying the alleged discriminatory housing

practice and advising such respondent of the procedural rights and obli-

gations of respondents under this act, together with a copy of the original

complaint. Service of the notice shall be made in the manner prescribed

by the code of civil procedure.

(c) Whenever a local fair housing ordinance provides rights and rem-

edies for alleged discriminatory housing practices which are, in the judg-

ment of the commission, substantially equivalent to the rights and rem-

edies provided in this act, the commission shall refer to the appropriate

local agency any complaint filed under this act which appears to constitute

a violation of such local fair housing ordinance. The commission shall take

no further action with respect to such complaint until 30 days have

elapsed since the complaint was referred to the local agency, or the local

agency has completed its investigation, or the local agency requests the

commission to assume jurisdiction or to assist it, whichever occurs first.

The local agency shall inform the commission in writing of the status of

the referred complaint at the end of the referral period or when the local

agency has completed its investigation, whichever occurs first. The com-

mission may take further action on the complaint if in its judgment the

protection of the rights of the parties or the interests of justice require

such action.

(d) A person who is not named as a respondent in a complaint, but

who is identified as a respondent in the course of investigation, may be

joined as an additional or substitute respondent upon written notice, un-

der subsections (a) and (b), to such person, from the commission.

(e) (1) If a complaint is not referred to a local agency as provided in

subsection (b), or after the commission assumes jurisdiction of a com-

plaint following such referral, the commission shall promptly commence

an investigation thereof, in the manner provided in K.S.A. 44-1005, and

amendments thereto, for investigating complaints of violations of the Kan-

sas act against discrimination, and complete such investigation, including

conciliation, within 100 days after the filing of the complaint or, when

the commission takes further action under subsection (c), within 100 days

after the commission assumes jurisdiction of a complaint, unless it is im-

practicable to do so.

(2) If the commission is unable to complete the investigation within

100 days, or when the commission takes further action under subsection

(c), within 100 days after the commission assumes jurisdiction of a com-

plaint, the commission shall inform the parties in writing of the reasons

for not doing so.

(3) The commission shall make final administrative disposition within

one year after the filing of the complaint or, when the commission takes

further action under subsection (c), within one year after the commission

assumes jurisdiction of a complaint, unless it is impracticable to do so.

(4) If the commission is unable to make final administrative disposi-

tion of the complaint within one year of the date of filing, or when the

commission takes further action under subsection (c), within one year

after the commission assumes jurisdiction of a complaint, the commission

shall inform the parties in writing of the reasons for not doing so.

(f) (1) If it is determined that probable cause exists for crediting the

allegations of the complaint, the commission shall serve written notice of

such determination on the person aggrieved. The commission shall pro-

ceed to try to eliminate or correct the alleged discriminatory housing

practice by informal methods of conference, conciliation and persuasion

which shall be held, insofar as possible, in the cities or other localities

where the alleged discriminatory housing practices have occurred or are

about to occur. The commission is hereby authorized to enter into formal

conciliation agreement which shall include the person aggrieved and the

respondent as signatories. Such agreements may include in the provisions

thereof any term or condition which may be included in a final order of

the commission. Each conciliation agreement shall be made public unless

the person aggrieved and respondent otherwise agree and the commission

determines that disclosure is not required to further the purposes of this

act.

(2) Any of the parties to a conciliation agreement may apply to the

district court of the county where the alleged discriminatory housing prac-

tice occurred, or was about to occur, for specific performance of any such

agreement.

(g) If the commission is unable to eliminate or correct the alleged

discriminatory housing practice by informal methods of conference, con-

ciliation and persuasion, a hearing may be held before the commission in

the manner provided in K.S.A. 44-1005, and amendments thereto, for

holding hearings under the Kansas act against discrimination. In any such

hearing, the burden of proof shall be on the complainant.

(h) In lieu of a hearing under subsection (g), a complainant, a re-

spondent or an aggrieved person on whose behalf the complaint was filed

may elect to have the claims asserted in the complaint decided in a civil

action as provided in subsection (d) of K.S.A. 44-1021, and amendments

thereto. The election must be made not later than 20 days after the receipt

by the electing person of service in the manner provided in K.S.A. 44-

1005, and amendments thereto, or, in the case of an election by the

commission, not later than 20 days after such service. The person making

the election shall give notice to the commission and to all other com-

plainants and respondents to whom the complaint relates. If a timely

election is made under this subsection (h)(2), the commission shall file,

not later than 30 days after the election is made, a civil action as provided

in subsection (d) of K.S.A. 44-1021, and amendments thereto.

(i) If an election is not made under subsection (h) and the commission

finds that a respondent has engaged in or is engaging in any discriminatory

housing practice, the commission shall render an order requiring the re-

spondent to cease and desist from such discriminatory housing practice,

and such order may direct a respondent to take such affirmative action

as the commission deems necessary to effectuate the intent and purposes

of this act, including, but not limited to, the selling or renting of specified

real property and the lending of money for the acquisition, construction,

rehabilitation, repair or maintenance of real property. Such order may

also include an award of actual damages, including damages caused by

pain, suffering and humiliation. Such order may also, to vindicate the

public interest, assess a civil penalty against the respondent:

(1) In an amount not exceeding $10,000, if the respondent has not

been adjudged to have committed any prior discriminatory housing prac-

tice;

(2) subject to the provisions of subsection (i)(4), in an amount not

exceeding $25,000, if the respondent has been adjudged to have com-

mitted one other discriminatory housing practice during the five-year pe-

riod ending on the date of the filing of the complaint;

(3) subject to the provisions of subsection (i)(4), in an amount not

exceeding $50,000, if the respondent has been adjudged to have com-

mitted two or more discriminatory housing practices during the seven-

year period ending on the date of the filing of the complaint; and

(4) if the acts constituting the discriminatory housing practice that is

the object of the complaint are committed by the same natural person

who has been previously adjudged to have committed acts constituting a

discriminatory housing practice in the amounts provided by subsections

(i)(2) and (i)(3) without regard to the period of time within which any

subsequent discriminatory housing practice occurred.

Any such civil penalty shall be paid into remitted to the state treasurer

in accordance with the provisions of K.S.A. 75-4215, and amendments

thereto. Upon receipt of each such remittance, the state treasurer shall

deposit the entire amount in the state treasury to the credit of the state

general fund.

(j) Within 15 days after an order is served by the commission requir-

ing or prohibiting action by a respondent, the respondent shall notify the

commission in writing of the manner in which the respondent has com-

plied with the order.

(k) In the case of an order with respect to a discriminatory housing

practice that occurred in the course of a business subject to a licensing

or regulation by a state agency, the commission shall, not later than 30

days after the respondent has complied with the order, or, if such order

is judicially reviewed under K.S.A. 44-1021, and amendments thereto, 30

days after such order is in substance affirmed upon such review:

(1) Send copies of the findings of fact, conclusions of law, and the

order, to that state agency; and

(2) recommend to the state agency appropriate disciplinary action,

including, where appropriate, the suspension or revocation of the license

of the respondent.

Sec. 147. K.S.A. 44-1506 is hereby amended to read as follows: 44-

1506. There is hereby created in the state treasury the athlete agent reg-

istration fee fund which shall be administered by the secretary of state.

All moneys credited to the athlete agent registration fee fund shall be

used for the expenses incurred for the performance of the duties and

functions of the secretary of state under the Kansas athlete agent act. All

expenditures from the athlete agent registration fee fund shall be made

in accordance with the provisions of appropriation acts upon warrants of

the director of accounts and reports issued pursuant to vouchers approved

by the secretary of state or by a person or persons designated by the

secretary. Fees, civil penalties and other moneys received under this act

by the secretary of state shall be deposited remitted to the state treasurer

in accordance with the provisions of K.S.A. 75-4215, and amendments

thereto. Upon receipt of each such remittance, the state treasurer shall

deposit the entire amount in the state treasury to the credit of the athlete

agent registration fee fund.

Sec. 148. K.S.A. 44-1512 is hereby amended to read as follows: 44-

1512. (a) If the secretary of state determines that a person regulated

under this act has violated this act or a rule and regulation adopted under

this act in a manner that constitutes a ground for disciplinary action under

K.S.A. 44-1505, and amendments thereto, the secretary of state may as-

sess a civil penalty against that person as provided by this section.

(b) The secretary of state may assess the civil penalty in an amount

not to exceed $25,000. In determining the amount of the civil penalty,

the secretary of state shall consider the seriousness of the violation.

(c) If after examination of a possible violation and the facts relating

to that possible violation the secretary of state concludes that a violation

has occurred, the secretary shall issue a preliminary report that states the

facts on which the conclusion is based, the fact that a civil penalty is to

be imposed, and the amount to be assessed. Not later than the 10th day

after the date on which the secretary issues the preliminary report, the

secretary shall send a copy of the report to the person charged with the

violation together with a statement of the right of the person to a hearing

relating to the alleged violation and the amount of the penalty.

(d) Not later than the 20th day after the date on which the report is

sent, the person charged either may make a written request for a hearing

or may remit the amount of the civil penalty to the secretary of state.

Failure either to request a hearing or to remit the amount of the civil

penalty within the time provided by this subsection shall constitute a

waiver of the right to a hearing under this act. If the person charged

requests a hearing, the hearing shall be conducted in the manner provided

under the Kansas administrative procedure act. If it is determined after

the hearing that the person has committed the alleged violation, the sec-

retary shall give written notice to the person of the findings established

by the hearing and the amount of the penalty and shall enter an order

requiring the person to pay the penalty.

(e) Not later than the 30th day after the date on which the notice is

received, the person charged shall pay the civil penalty in full or, if the

person wishes to contest either the amount of the penalty or the fact of

the violation, forward the assessed amount to the secretary of state for

deposit in an escrow account. If, after judicial review, it is determined

that no violation occurred or that the amount of the penalty should be

reduced, the secretary shall remit the appropriate amount to the person

charged with the violation not later than the 30th day after the date on

which the judicial determination becomes final.

(f) Failure to remit the amount of the civil penalty to the secretary

of state within the time provided by subsection (e) results in a waiver of

all legal rights to contest the violation or the amount of the penalty.

(g) A civil penalty owed under this section may be recovered in a civil

action brought by the attorney general at the request of the secretary of

state.

(h) Any penalty collected under this section shall be deposited re-

mitted to the state treasurer in accordance with the provisions of K.S.A.

75-4215, and amendments thereto. Upon receipt of each such remittance,

the state treasurer shall deposit the entire amount in the state treasury to

the credit of the athlete agent registration fee fund.

Sec. 149. K.S.A. 45-107 is hereby amended to read as follows: 45-

107. (a) The secretary of state shall sell copies of the session laws at the

per volume price for such copies fixed by the secretary of state under this

section. The secretary of state shall remit all moneys received under this

section to the state treasurer at least monthly, and in accordance with the

provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of

each such remittance, the state treasurer shall deposit the same entire

amount in the state treasury to the credit of the state general fund.

(b) Whenever the inventory of copies of any volume of the session

laws exceeds 100 and a later volume of the session laws has been pub-

lished, the secretary of state may dispose of copies of such volume without

making a charge therefor until the inventory of such volume is reduced

to 100 copies. When the inventory of any volume of the session laws is

100 copies or less, the secretary of state, with the approval of the revisor

of statutes, may dispose of copies from such inventory without making a

charge therefor.

(c) The secretary of state shall fix by rules and regulations the per

volume price for copies of the session laws sold under this section to

recover the costs of printing, binding and storing such volumes. The sec-

retary of state shall revise all such prices from time to time as necessary

for the purposes of covering and recovering such costs.

Sec. 150. K.S.A. 45-116 is hereby amended to read as follows: 45-

116. (a) At the conclusion of each legislative session, the secretary of the

senate and the chief clerk of the house of representatives shall prepare

permanent journals of the senate and house of representatives to be en-

titled ``Senate and House Journals of the State of Kansas for

,''

and the blank shall be filled with the year and words indicating whether

the sessions journalized are regular or special, or both. In preparation of

such journals, the secretary of the senate and chief clerk of the house

shall work under the supervision of the legislative coordinating council.

Such journals shall include the matters contained in the daily journals of

the two houses and such additional materials and information as may be

directed by the legislative coordinating council. Such journals shall be

published in one or more volumes as determined by such council. Such

journals shall be printed in clothbound copies by the director of printing

from copy prepared by the secretary of the senate and chief clerk of the

house of representatives.

(b) Upon the advice of the secretary of the senate and the chief clerk

of the house of representatives, the secretary of state shall specify the

number of copies of such journals which shall be printed and clothbound,

which shall not be more than 750 copies and, in addition thereto, such

number of copies as are needed for the purposes of the publication col-

lection and depository system established under K.S.A. 75-2566, and

amendments thereto, for disposition by the secretary of state, as follows:

(1) One copy to the governor, the lieutenant governor, the secretary

of state, the attorney general, the state historical society library, and each

member of the legislature;

(2) two copies to the board of county commissioners of each county,

upon request therefor;

(3) to the several offices of the judicial branch of state government,

the number of copies necessary to conduct the official business of such

offices, as requested by the chief justice of the supreme court;

(4) to the office of attorney general, the state library, the office of the

revisor of statutes, the division of post audit and the legislative research

department, the number of copies necessary to conduct the official busi-

ness of such offices, as requested by the chief administrative officers

thereof;

(5) the number of copies necessary for use by the legislature, as re-

quested by the director of legislative administrative services;

(6) the remainder of such copies shall be kept by the secretary of

state for sale at the per volume price for such copies fixed by the legislative

coordinating council under this section.

(c) One year after the publication date of any volume, the secretary

of state may dispose of extra copies, retaining an inventory of at least 10

volumes for distribution without charge. Five years after the publication

date of any volume, the secretary of state may dispose of the remainder

of such copies.

(d) The legislative coordinating council shall fix the per volume price

for clothbound copies of the permanent journals of the senate and house

of representatives, sold under this section, to recover the costs of printing

and binding such volumes. The legislative coordinating council shall re-

vise such prices from time to time as necessary for the purposes of cov-

ering and recovering such costs.

(e) The secretary of state shall remit all moneys received under this

section to the state treasurer at least monthly and in accordance with the

provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of

each such remittance, the state treasurer shall deposit the entire amount

of each such remittance in the state treasury to the credit of the state

general fund.

Sec. 151. K.S.A. 46-237a is hereby amended to read as follows: 46-

237a. (a) The provisions of this section shall apply to:

(1) The governor;

(2) the lieutenant governor;

(3) the governor's spouse;

(4) all officers and employees of the executive branch of state gov-

ernment; and

(5) all members of boards, commissions and authorities of the exec-

utive branch of state government.

(b) No person subject to the provisions of this section shall solicit or

accept any gift, economic opportunity, loan, gratuity, special discount or

service provided because of such person's official position, except:

(1) A gift having an aggregate value of less than $40 given at a cere-

mony or public function where the person is accepting the gift in such

person's official capacity; or

(2) gifts from relatives or gifts from personal friends when it is ob-

vious to the person that the gift is not being given because of the person's

official position; or

(3) anything of value received by the person on behalf of the state

that inures to the benefit of the state or that becomes the property of the

state; or

(4) contributions solicited on behalf of a nonprofit organization which

is exempt from taxation under paragraph (3) of subsection (c) of section

501 of the internal revenue code of 1986, as amended.

(c) No person subject to the provisions of this section shall solicit or

accept free or special discount meals from a source outside of state gov-

ernment, except:

(1) Meals, the provision of which is motivated by a personal or family

relationship or provided at events that are widely attended. An occasion

is ``widely attended'' when it is obvious to the person accepting the meal

that the reason for providing the meal is not a pretext for exclusive or

nearly exclusive access to the person;

(2) meals provided at public events in which the person is attending

in an official capacity;

(3) meals provided to a person subject to this act when it is obvious

such meals are not being provided because of the person's official posi-

tion; and

(4) food such as soft drinks, coffee or snack foods not offered as part

of a meal.

(d) No person subject to the provisions of this section shall solicit or

accept free or special discount travel or related expenses from a source

outside state government, except:

(1) When it is obvious to the person accepting the same that the free

or special discount travel and related expenses are not being provided

because of the person's official position; or

(2) when the person's presence at a meeting, seminar or event serves

a legitimate state purpose or interest and the person's agency authorizes

or would authorize payment for such travel and expenses.

(e) No person subject to the provisions of this section shall solicit or

accept free or special discount tickets or access to entertainment or sport-

ing events or activities such as plays, concerts, games, golf, exclusive swim-

ming, hunting or fishing or other recreational activities when the free or

special discount tickets or access are provided because of the person's

official position. The provisions of this subsection shall not apply to per-

sons whose official position requires or obliges them to be present at such

events or activities.

(f) (1) Violations of the provisions of this section by any classified

employee in the civil service of the state of Kansas shall be considered

personal conduct detrimental to the state service and shall be a basis for

suspension, demotion or dismissal, subject to applicable state law.

(2) Violations of the provisions of this section by any unclassified em-

ployee shall subject such employee to discipline up to and including ter-

mination.

(3) In addition to the penalty prescribed under paragraphs (1) and

(2), the commission may assess a civil fine, after proper notice and an

opportunity to be heard, against any person for a violation of this section,

in an amount not to exceed $5,000 for the first violation, not to exceed

$10,000 for the second violation and not to exceed $15,000 for the third

violation and for each subsequent violation. All fines assessed and col-

lected under this section shall be remitted to the state treasurer in ac-

cordance with the provisions of K.S.A. 75-4215, and amendments thereto.

Upon receipt thereof of each such remittance, the state treasurer shall

deposit the entire amount in the state treasury and credit it to the credit

of the governmental ethics fee fund established by K.S.A. 25-4119e, and

amendments thereto.

Sec. 152. K.S.A. 46-265 is hereby amended to read as follows: 46-

265. (a) Every lobbyist shall register with the secretary of state by com-

pleting and signing a registration form prescribed and provided by the

commission. Such registration shall show the name and address of the

lobbyist, the name and address of the person compensating the lobbyist

for lobbying, the purpose of the employment and the method of deter-

mining and computing the compensation of the lobbyist. If the lobbyist

is compensated or to be compensated for lobbying by more than one

employer or is to be engaged in more than one employment, the relevant

facts listed above shall be stated separately for each employer and each

employment. Whenever any new lobbying employment or lobbying po-

sition is accepted by a lobbyist already registered as provided in this sec-

tion, such lobbyist shall report the same on forms prescribed and provided

by the commission before engaging in any lobbying activity related to

such new employment or position, and such report shall be filed with the

secretary of state. When a lobbyist is an employee of a lobbying group or

firm which contracts to lobby and not an owner or partner of such entity,

the lobbyist shall report each client of the group, firm or entity whose

interest the lobbyist represents. Whenever the lobbying of a lobbyist con-

cerns a legislative matter, the secretary of state promptly shall transmit

copies of each registration and each report filed under this act to the

secretary of the senate and the chief clerk of the house of representatives.

(b) On or after October 1, in any year any person may register as a

lobbyist under this section for the succeeding calendar year. Such regis-

tration shall expire annually on December 31, of the year for which the

lobbyist is registered. In any calendar year, before engaging in lobbying,

persons to whom this section applies shall register or renew their regis-

tration as provided in this section. Except for employees of lobbying

groups or firms, every person registering or renewing registration who

anticipates spending $1,000 or less for lobbying in such registration year

on behalf of any one employer shall pay to the secretary of state a fee of

$35 for lobbying for each such employer. Except for employees of lob-

bying groups or firms, every person registering or renewing registration

who anticipates spending more than $1,000 for lobbying in such registra-

tion year on behalf of any one employer shall pay to the secretary of state

a fee of $300 for lobbying for such employer. Any lobbyist who at the

time of initial registration anticipated spending less than $1,000, on behalf

of any one employer, but at a later date spends in excess of such amount,

within three days of the date when expenditures exceed such amount,

shall file an amended registration form which shall be accompanied by

an additional fee of $220 for such year. Every person registering or re-

newing registration as a lobbyist who is an employee of a lobbying group

or firm and not an owner or partner of such entity shall pay an annual

fee of $360. The secretary of state shall remit all moneys received under

this section to the state treasurer, and in accordance with the provisions

of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such

remittance,the state treasurer shall deposit the same entire amount in the

state treasury to the credit of the governmental ethics commission fee

fund.

(c) Any person who has registered as a lobbyist pursuant to this act

may file, upon termination of such person's lobbying activities, a state-

ment terminating such person's registration as a lobbyist. Such statement

shall be on a form prescribed by the commission and shall state the name

and address of the lobbyist, the name and address of the person com-

pensating the lobbyist for lobbying and the date of the termination of the

lobbyist's lobbying activities.

(d) No person who has failed or refused to pay any civil penalty im-

posed pursuant to K.S.A. 46-280, and amendments thereto, shall be au-

thorized or permitted to register as a lobbyist in accordance with this

section until such penalty has been paid in full.

Sec. 153. K.S.A. 46-280 is hereby amended to read as follows: 46-

280. (a) The commission shall send a notice by registered or certified mail

to any person failing to register or to file any report or statement as

required by K.S.A. 46-247, 46-265 or 46-268, and amendments thereto,

within the time period prescribed therefor. The notice shall state that the

required registration, report or statement had not been filed with the

office of secretary of state. The notice also shall state that such person

shall have five days from the date of receipt of such notice to comply with

the registration and reporting requirements before a civil penalty shall be

imposed for each day that the required documents remain unfiled. If such

person fails to comply within such period, such person shall pay to the

state a civil penalty of $10 per day for each day that such person remains

unregistered or that such report or statement remains unfiled, except that

no such civil penalty shall exceed $300. The commission may waive, for

good cause, payment of any civil penalty imposed hereunder.

(b) Whenever the commission shall determine that any report filed

by a lobbyist as required by K.S.A. 46-269, and amendments thereto, is

incorrect, incomplete or fails to provide the information required by such

section, the commission shall notify such lobbyist by registered or certi-

fied mail, specifying the deficiency. Such notice shall state that the lob-

byist shall have 30 days from the date of the receipt of such notice to file

an amended report correcting such deficiency before a civil penalty will

be imposed and the registration of such lobbyist revoked and the badge

be required to be returned to the office of the secretary of state. A copy

of such notice shall be sent to the office of the secretary of state. If such

lobbyist fails to file an amended report within the time specified, such

lobbyist shall pay to the commission a civil penalty of $10 per day for

each day that such person fails to file such report except that no such civil

penalty shall exceed $300. On the 31st day following the receipt of such

notice, the registration of any lobbyist failing to file such amended report

shall be revoked.

(c) Civil penalties provided for by this section shall be paid remitted

to the state treasurer, who in accordance with the provisions of K.S.A.

75-4215, and amendments thereto. Upon receipt of each such remittance,

the state treasurer shall deposit the same entire amount in the state treas-

ury to the credit of the governmental ethics commission fee fund.

(d) (1) Except as provided in subsection (2), if a person fails to pay

a civil penalty provided for by this section, it shall be the duty of the

commission to bring an action to recover such civil penalty in the district

court of the county in which such person resides.

(2) If a person required to file under subsection (f) of K.S.A. 46-247,

and amendments thereto, fails to pay a civil penalty provided for by this

section, it shall be the duty of the commission to bring an action to recover

such civil penalty in the district court of Shawnee County, Kansas.

Sec. 154. K.S.A. 46-288 is hereby amended to read as follows: 46-

288. The commission, in addition to any other penalty prescribed under

K.S.A. 46-215 through 46-286, and amendments thereto, may assess a

civil fine, after proper notice and an opportunity to be heard, against any

person for a violation pursuant to K.S.A. 46-215 through 46-286, and

amendments thereto, in an amount not to exceed $5,000 for the first

violation, not to exceed $10,000 for the second violation and not to exceed

$15,000 for the third violation and for each subsequent violation. All fines

assessed and collected under this section shall be remitted promptly to

the state treasurer in accordance with the provisions of K.S.A. 75-4215,

and amendments thereto. Upon receipt thereof of each such remittance,

the state treasurer shall deposit the entire amount in the state treasury

and credit it to the credit of the governmental ethics commission fee fund.

Sec. 155. K.S.A. 46-802 is hereby amended to read as follows: 46-

802. The secretary of the senate and the chief clerk of the house of rep-

resentatives shall instruct the revisor of statutes regarding the appropriate

numbering of prefiled bills and resolutions. In accordance with such in-

struction the revisor of statutes shall give each prefiled bill and resolution

its appropriate number before delivery of a copy to the division of print-

ing. The originals of all prefiled bills and resolutions shall be in the pos-

session of the secretary of the senate, if a senate bill or resolution, or the

chief clerk of the house of representatives, if a house bill or resolution.

Upon the prefiling of any bill or resolution under the provisions of this

act, the secretary of the senate, if a senate bill or resolution, or the chief

clerk of the house of representatives, if a house bill or resolution, shall

make copies thereof available to any person, upon request, at a cost of

$.50 per page until the same have been printed, as provided herein. All

moneys received under this section from such charges shall be remitted

to the state treasurer at least monthly, and in accordance with the pro-

visions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each

such remittance, the state treasurer shall deposit the same entire amount

in the state treasury to the credit of the legislative special revenue fund.

The secretary of the senate, in the case of senate bills and resolutions,

and the chief clerk of the house of representatives, in the case of house

bills or resolutions, shall maintain a current list, by title and sponsor, of

all bills and resolutions which have been prefiled, and such lists shall be

open to public inspection.

Sec. 156. K.S.A. 46-1118 is hereby amended to read as follows: 46-

1118. (a) (1) Except as otherwise provided by statute, whenever the post

auditor performs any additional audit work for any state agency either to

satisfy federal government requirements or to satisfy financial-compliance

audit requirements prescribed by or pursuant to any statute other than

K.S.A. 46-1106 through 46-1117, and amendments thereto, and incurs

costs in addition to those attributable to the operations of the division of

post audit in performance of other duties and responsibilities, the post

auditor shall make charges for such additional costs.

(2) The legislative post audit committee may authorize the post au-

ditor to perform additional financial-related audit work at the request of

a state agency. Upon the authorization and in accordance with the direc-

tion of the legislative post audit committee, the post auditor may make

charges for costs incurred for the performance of such financial-related

audit work.

(3) The furnishing of any such audit services by the division of post

audit shall be a transaction between the post auditor and the state agency

receiving such services and such transaction shall be settled in accordance

with the provisions of K.S.A. 75-5516, and amendments thereto.

(b) All moneys received for reimbursement of the division of post

audit under this section shall be deposited remitted to the state treasurer

in accordance with the provisions of K.S.A. 75-4215, and amendments

thereto. Upon receipt of each such remittance, the state treasurer shall

deposit the entire amount in the state treasury to the credit of the audit

services fund, which fund is hereby created in the state treasury. All ex-

penditures from the audit services 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 post auditor or a person or

persons designated by the post auditor.

Sec. 157. K.S.A. 46-1121 is hereby amended to read as follows: 46-

1121. (a) Each state agency awarded a federal grant or other federal

financial assistance which is subject to a financial-compliance audit as a

condition of such grant or assistance shall notify the post auditor imme-

diately of the award of such grant or assistance. Based on the amount and

nature of federal money received by the state agency, the post auditor

shall compute annually the amount of federal money reasonably antici-

pated to be required to provide audit coverage in accordance with federal

requirements. The amounts determined for such audits shall be reviewed

and approved by the contract audit committee. Upon such approval, the

state agency, in accordance with K.S.A. 46-1118, and amendments

thereto, shall reimburse the division of post audit for the amount ap-

proved by the contract audit committee.

(b) The post auditor shall compute the amount of money reasonably

anticipated to be required to provide an audit of any state agency subject

to a financial-compliance audit as required pursuant to any statute other

than K.S.A. 46-1106 through 46-1117, and amendments thereto, or

K.S.A. 74-4907, and amendments thereto. The amounts determined for

such audits shall be reviewed and approved by the contract audit com-

mittee. Upon such approval, the state agency, in accordance with K.S.A.

46-1118, and amendments thereto, shall reimburse the division of post

audit for the amount approved by the contract audit committee.

(c) The post auditor shall remit all moneys received under this section

to the state treasurer at least monthly in accordance with the provisions

of K.S.A. 75-4215, and amendments thereto. Upon receipt of any each

such remittance, the state treasurer shall deposit the entire amount

thereof in the state treasury and the same shall be credited to the credit

of the audit services fund.

(d) In addition to expenditures which may be made from the audit

services fund under K.S.A. 46-1118, and amendments thereto, expendi-

tures shall be made from such fund, and from other available appropri-

ations, to pay for the cost of financial-compliance audits performed to

comply with federal government audit requirements.

Sec. 158. K.S.A. 46-1207a is hereby amended to read as follows: 46-

1207a. (a) The legislative coordinating council may provide for sale or

other disposition of copies of any publication, document or other paper,

information or record, regardless of form or characteristics, produced by

or under the legislative branch, whether such copies are printed or re-

produced in any other manner. Such council may fix charges for sale of

any such copies, and such charges may include costs of mailing, repro-

duction and other expenses. Whenever such council provides for the sale

of copies under this section, the same shall be sold and distributed by or

through the director of legislative administrative services or such other

state officer as such council specifies. All amounts received under this

section by or for any such sales shall be remitted at least monthly to the

state treasurer, and in accordance with the provisions of K.S.A. 75-4215,

and amendments thereto. Upon receipt of each such remittance, the state

treasurer shall deposit the same entire amount in the state treasury to the

credit of the legislative special revenue fund. The provisions of this section

shall not apply to the sale or distribution of the Kansas Statutes Annotated,

the session laws of Kansas or other publications, documents or papers the

sale of which is specifically provided for by law.

(b) At the conclusion of each legislative session, the officers of each

house may deposit for safekeeping with the secretary of state such leg-

islative documents and other papers as they may determine.

(c) All moneys received by the director of legislative administrative

services for the disposition of surplus property of any office or agency of

the legislative branch shall be deposited in the state treasury to the credit

of the legislative special revenue fund.

(d) The legislative coordinating council may provide for additional

legislative stationery or other printed material supplies for members of

the legislature to be provided at cost as determined by the council. All

moneys received by the director of legislative administrative services un-

der this subsection shall be deposited remitted to the state treasurer in

accordance with the provisions of K.S.A. 75-4215, and amendments

thereto. Upon receipt of each such remittance, the state treasurer shall

deposit the entire amount in the state treasury to the credit of the legis-

lative special revenue fund.

(e) Except as otherwise specifically provided by statute on or after

the effective date of this act, all moneys received by the director of leg-

islative administrative services on or after November 18, 1991, under this

or any other statute shall be credited remitted to the state treasurer in

accordance with the provisions of K.S.A. 75-4215, and amendments

thereto. Upon receipt of each such remittance, the state treasurer shall

deposit the entire amount in the state treasury to the credit of the legis-

lative special revenue fund and any such moneys deposited in the state

treasury to the credit of the state general fund shall be transferred from

the state general fund to the legislative special revenue fund by the di-

rector of accounts and reports upon certification by the director of leg-

islative administrative services of the amount to be transferred.

Sec. 159. K.S.A. 46-1503 is hereby amended to read as follows: 46-

1503. (a) The revisor of statutes shall contract in the name of the legis-

lative coordinating council, and with approval of such council, for such

computer programs and other computer services as cannot be suitably

obtained from state agencies, and in like manner, the revisor shall acquire

such computer and communications components as may be needed for

this system. Purchases and other contracts authorized by the statutes con-

tained in article 15 of chapter 46 of Kansas Statutes Annotated shall not

be subject to K.S.A. 75-3739, and amendments thereto, nor shall the same

be subject to approval under any statute other than those contained in

article 15 of chapter 46. The director of information systems and com-

munications and the director of purchases shall render such assistance in

implementation of this system as is requested by the legislative coordi-

nating council or the revisor of statutes.

(b) When authorized by the legislative coordinating council, the re-

visor of statutes may provide to or share with any other state agency

computer services through the operation of the comprehensive legislative

information system. Such services may be provided without charge or,

when directed by the council, shall be provided at cost as the same is

determined by the council. The furnishing of computer services under

this subsection (b) for which a charge is made shall be a transaction to

be settled in accordance with the provisions of K.S.A. 75-5516, and

amendments thereto. All receipts for charges made under this subsection

(b) shall be deposited remitted to the state treasurer in accordance with

the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt

of each such remittance, the state treasurer shall deposit the entire amount

in the state treasury to the credit of the legislative special revenue fund.

(c) When authorized by the legislative coordinating council, the re-

visor of statutes may provide information regarding legislation to state

agencies and to private individuals, companies and organizations through

access to the legislative information system. The primary purpose for the

legislative information system shall be to provide necessary information

and service to the legislature and offices of the legislative branch of gov-

ernment and the revisor of statutes shall impose such conditions and

restrictions upon the receipt of information from such system by agencies,

persons and organizations not a part of the legislative branch of govern-

ment as may be necessary to protect such system and services for the

purpose for which established. The legislative coordinating council may

fix a charge for the receipt of information regarding legislation through

access to the legislative information system by state agencies, private in-

dividuals, companies and organizations not a part of the legislative branch

of government. Such charges shall be collected by the director of legis-

lative administrative services upon certification by the revisor of statutes.

All amounts received from charges imposed pursuant to this subsection

shall be remitted at least monthly, and to the state treasurer in accordance

with the provisions of K.S.A. 75-4215, and amendments thereto. Upon

receipt of each such remittance, the state treasurer shall deposit all such

amounts the entire amount in the state treasury to the credit of the leg-

islative special revenue fund.

Sec. 160. K.S.A. 47-417a is hereby amended to read as follows: 47-

417a. (a) The livestock commissioner may, when brand inspectors or ex-

aminers are available, provide brand inspection. When brand inspection

is requested and provided, the livestock commissioner shall charge and

collect from the person making the request, a brand inspection fee of not

to exceed $.75 per head on cattle and $.05 per head on sheep and other

livestock. No inspection charge shall be made or collected at any licensed

livestock market where brand inspection is otherwise available.

(b) The livestock commissioner shall remit all moneys received under

the statutes contained in article 4 of chapter 47 of the Kansas Statutes

Annotated, and amendments thereto, except K.S.A. 47-434 through 47-

445, and amendments thereto, to the state treasurer at least monthly in

accordance with the provisions of K.S.A. 75-4215, and amendments

thereto. Upon receipt of any each such remittance, the state treasurer

shall deposit the entire amount thereof in the state treasury and the same

shall be credited to the credit of the livestock brand fee fund. All ex-

penditures from such fund shall be made in accordance with appropria-

tion acts upon warrants of the director of accounts and reports issued

pursuant to vouchers approved by the livestock commissioner or by a

person or persons designated by the commissioner.

Sec. 161. K.S.A. 47-437 is hereby amended to read as follows: 47-

437. (a) The livestock commissioner shall charge and collect a fee of not

to exceed $.75 per head on all cattle and not to exceed $.05 per head on

all sheep inspected in brand inspection areas of the state. In addition to

the per head fee, the livestock commissioner may charge and collect an

on-site inspection fee and a mileage fee for each mile necessarily and

actually traveled in going to and returning from the place of inspection.

The livestock commissioner, when brand inspectors are available, may

provide brand inspection in other areas where brand inspection is re-

quested and the commissioner shall charge and collect inspection fees in

the same manner as prescribed for the collection of such fees in brand

inspection areas. The owner or seller of cattle or sheep inspected shall

be responsible for the payment of the inspection fees and such fees shall

be collected in such manner as the livestock commissioner shall prescribe

or authorize by rule or regulation.

(b) When the livestock commissioner determines that the fees col-

lected under this section are yielding more than is required for the pur-

poses for which such fees are collected, the commissioner may reduce

such fees for such period as the commissioner deems justified. In the

event the livestock commissioner, after reducing such fees, finds that

sufficient revenues are not being produced by the reduced fees to prop-

erly administer and enforce this act and acts of which this section is amen-

datory or supplemental, the commissioner may increase such fees to such

rate as will, in the commissioner's judgment, produce sufficient revenue

for the purposes provided in this section, but not exceeding $.75 per head

on cattle and not to exceed $.05 per head on sheep.

(c) The livestock commissioner shall remit all moneys received under

K.S.A. 47-434 through 47-445, and amendments thereto, to the state trea-

surer at least monthly in accordance with the provisions of K.S.A. 75-

4215, and amendments thereto. Upon receipt of any each such remittance,

the state treasurer shall deposit the entire amount thereof in the state

treasury and the same shall be credited to the credit of the county option

brand fee fund, except any amounts received for brand inspection services

of livestock outside of a county option area. 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 ap-

proved by the livestock commissioner or by a person or persons desig-

nated by the commissioner. All amounts received for inspection of live-

stock outside of a county option area shall be deposited to the credit of

the livestock brand fee fund.

Sec. 162. K.S.A. 47-504 is hereby amended to read as follows: 47-

504. (a) On and after the effective date of this act through June 30, 1999,

the registration fee shall be $12 for each livestock remedy or brand

thereof. On and after July 1, 1999, The registration fee shall be $10 for

each livestock remedy or brand thereof.

(b) All registrations shall expire on December 31 of each year. On

and after the effective date of this act through June 30, 1999, the regis-

tration may be continued in force and effect upon the payment of a re-

newal fee of $12 per year per brand. On and after July 1, 1999, The

registration may be continued in force and effect upon the payment of a

renewal fee of $10 per year per brand. For a period of less than six months

the registration fee shall be 1/2 the annual fee.

(c) When a livestock remedy has been registered and the registration

fee paid by the manufacturer or distributor no other person shall be

required to pay the fee. When a package of livestock remedy is or has

been sold in Kansas during the period when a valid registration was in

force and effect and the registration fee paid, the sale of the package shall

not be subject to the payment of further registration fees.

(d) If the fees herein stated provide more revenue than necessary for

the enforcement of this act, the state board of agriculture is hereby au-

thorized to adopt rules and regulations under this section to reduce the

original registration or renewal fee or either of them by regulation, or to

adopt rules and regulations under this section to increase the registration

or renewal fee if decided necessary, but not in excess of the amounts of

the fees set forth in this act.

(e) The secretary of the state board of agriculture shall remit all mon-

eys received by or for the secretary under the acts contained in article 5

of chapter 47 of the Kansas Statutes Annotated, and amendments thereto,

to the state treasurer at least monthly in accordance with the provisions

of K.S.A. 75-4215, and amendments thereto. On and after the effective

date of this act through June 30, 1999, upon receipt of any such remit-

tance the state treasurer shall deposit the entire amount thereof in the

state treasury and an amount equal to $2 per registration fee shall be