Kansas 2023-2024 Regular Session

Kansas House Bill HB2181 Compare Versions

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11 Session of 2023
22 HOUSE BILL No. 2181
33 By Representatives Jacobs, Fairchild, Garber, Goetz, Hill, Murphy and Rhiley
44 1-25
55 AN ACT concerning abortion; prohibiting abortion; creating the crimes of
66 unlawful performance of an abortion and unlawful destruction of a
77 fertilized embryo and establishing penalties therefor; restricting the use
88 of fetal tissue; relating to exclusions from sales and use tax exemptions
99 for certain abortion providers; amending K.S.A. 65-2401, 65-2837, 65-
1010 6731, 65-6732, 65-67a01, 65-67a02, 65-67a04, 65-67a07, 76-3308 and
1111 79-32,195 and K.S.A. 2022 Supp. 21-5301, 21-5302, 21-5303, 60-
1212 1901, 60-1906, 79-32,182b, 79-32,261 and 79-3606 and repealing the
1313 existing sections; also repealing K.S.A. 38-2003, 65-445, 65-4a01, 65-
1414 4a02, 65-4a03, 65-4a04, 65-4a05, 65-4a06, 65-4a07, 65-4a08, 65-4a09,
1515 65-4a10, 65-4a11, 65-4a12, 65-6701, 65-6702, 65-6703, 65-6704, 65-
1616 6705, 65-6707, 65-6708, 65-6709, 65-6710, 65-6711, 65-6712, 65-
1717 6714, 65-6715, 65-6721, 65-6722, 65-6723, 65-6724, 65-6725, 65-
1818 6726, 65-6741, 65-6742, 65-6743, 65-6744, 65-6745, 65-6746, 65-
1919 6747, 65-6748, 65-6749 and 65-67a09.
2020 Be it enacted by the Legislature of the State of Kansas:
2121 New Section 1. (a) The purposes of sections 1 through 4, and
2222 amendments thereto, are:
2323 (1) To follow the constitution of the United States, which requires
2424 that "no state...shall deny to any person within its jurisdiction the equal
2525 protection of the laws";
2626 (2) to fulfill such constitutional and statutory requirements by
2727 protecting the lives of unborn persons with the same criminal and civil
2828 laws protecting the lives of born persons by repealing provisions that
2929 permit willful prenatal murder or assault;
3030 (3) to ensure that all persons potentially subject to such laws are
3131 entitled to due process protections; and
3232 (4) to abolish abortion in this state.
3333 (b) Unless otherwise provided by law, the enforcement of the
3434 provisions of sections 1 through 4, and amendments thereto, is subject to
3535 the same presumptions, defenses, justifications, rules of criminal
3636 procedure, immunities and clemencies as would apply where the victim is
3737 a person who had been born alive.
3838 New Sec. 2. Any federal statute, regulation, treaty, order or court
3939 decision that purports to supersede, stay or overrule this act is in violation
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7676 of the constitution of the state of Kansas and the constitution of the United
7777 States and is therefore void. The state of Kansas, any state agency or any
7878 political subdivision of this state may, but shall not be required to, enter an
7979 appearance, special or otherwise, in any federal suit challenging the
8080 constitutionality of this act.
8181 New Sec. 3. Pursuant to the powers granted to the legislature by
8282 article 2, § 27 of the constitution of the state of Kansas, any judge of this
8383 state who purports to enjoin, stay, overrule or void any provision of this act
8484 shall be subject to impeachment and removal.
8585 New Sec. 4. (a) Unlawful performance of an abortion is knowingly
8686 performing an abortion, regardless of the gestational age of the unborn
8787 child.
8888 (b) Unlawful destruction of a fertilized embryo is the act of
8989 performing an unlawful abortion as part of the process of artificial
9090 insemination.
9191 (c) (1) Unlawful performance of an abortion or attempt, conspiracy or
9292 criminal solicitation to commit unlawful performance of an abortion is a
9393 severity level 1, person felony.
9494 (2) Unlawful destruction of a fertilized embryo or attempt, conspiracy
9595 or criminal solicitation to commit unlawful destruction of a fertilized
9696 embryo is a severity level 1, person felony.
9797 (d) The provisions of K.S.A. 2022 Supp. 21-5301(c), and
9898 amendments thereto, shall not apply to a violation of attempting to commit
9999 the crime of unlawful performance of an abortion or unlawful destruction
100100 of a fertilized embryo pursuant to this section. The provisions of K.S.A.
101101 2022 Supp. 21-5302(d), and amendments thereto, shall not apply to a
102102 violation of conspiracy to commit the crime of unlawful performance of an
103103 abortion or unlawful destruction of a fertilized embryo pursuant to this
104104 section. The provisions of K.S.A. 2022 Supp. 21-5303(d), and
105105 amendments thereto, shall not apply to a violation of criminal solicitation
106106 to commit the crime of unlawful performance of an abortion or unlawful
107107 destruction of a fertilized embryo pursuant to this section.
108108 (e) This section shall not apply to any surgical procedure performed
109109 with the intent to:
110110 (1) Save the life or preserve the health of an unborn child; or
111111 (2) remove a dead, unborn child whose death was caused by
112112 spontaneous miscarriage, stillbirth or ectopic pregnancy.
113113 (f) As used in this section:
114114 (1) "Abortion" means the act of using or prescribing an instrument,
115115 drug, medicine or any other substance, device or means with the intent to
116116 cause the death of an unborn child;
117117 (2) "fertilization" means the fusion of a human spermatozoon with a
118118 human ovum; and
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162162 (3) "unborn child" means a living human child from the moment of
163163 fertilization in utero through pregnancy until birth, including the
164164 developmental stages of human conceptus, zygote, morula, blastocyst,
165165 embryo and fetus.
166166 Sec. 5. K.S.A. 2022 Supp. 21-5301 is hereby amended to read as
167167 follows: 21-5301. (a) An attempt is any overt act toward the perpetration
168168 of a crime done by a person who intends to commit such crime but fails in
169169 the perpetration thereof or is prevented or intercepted in executing such
170170 crime.
171171 (b) It shall not be a defense to a charge of attempt that the
172172 circumstances under which the act was performed or the means employed
173173 or the act itself were such that the commission of the crime was not
174174 possible.
175175 (c) (1) An attempt to commit an off-grid felony shall be ranked at
176176 nondrug severity level 1. An attempt to commit any other nondrug felony
177177 shall be ranked on the nondrug scale at two severity levels below the
178178 appropriate level for the underlying or completed crime. The lowest
179179 severity level for an attempt to commit a nondrug felony shall be a severity
180180 level 10.
181181 (2) The provisions of this subsection shall not apply to a violation of
182182 attempting to commit the crime of:
183183 (A) Aggravated human trafficking, as defined in K.S.A. 2022 Supp.
184184 21-5426(b), and amendments thereto, if the offender is 18 years of age or
185185 older and the victim is less than 14 years of age;
186186 (B) terrorism, as defined in K.S.A. 2022 Supp. 21-5421, and
187187 amendments thereto;
188188 (C) illegal use of weapons of mass destruction, as defined in K.S.A.
189189 2022 Supp. 21-5422, and amendments thereto;
190190 (D) rape, as defined in K.S.A. 2022 Supp. 21-5503(a)(3), and
191191 amendments thereto, if the offender is 18 years of age or older;
192192 (E) aggravated indecent liberties with a child, as defined in K.S.A.
193193 2022 Supp. 21-5506(b)(3), and amendments thereto, if the offender is 18
194194 years of age or older;
195195 (F) aggravated criminal sodomy, as defined in K.S.A. 2022 Supp. 21-
196196 5504(b)(1) or (2), and amendments thereto, if the offender is 18 years of
197197 age or older;
198198 (G) commercial sexual exploitation of a child, as defined in K.S.A.
199199 2022 Supp. 21-6422, and amendments thereto, if the offender is 18 years
200200 of age or older and the victim is less than 14 years of age;
201201 (H) sexual exploitation of a child, as defined in K.S.A. 2022 Supp.
202202 21-5510(a)(1) or (4), and amendments thereto, if the offender is 18 years
203203 of age or older and the child is less than 14 years of age;
204204 (I) aggravated internet trading in child pornography, as defined in
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248248 K.S.A. 2022 Supp. 21-5514(b), and amendments thereto, if the offender is
249249 18 years of age or older and the child is less than 14 years of age; or
250250 (J) capital murder, as defined in K.S.A. 2022 Supp. 21-5401, and
251251 amendments thereto; or
252252 (K) unlawful performance of an abortion, as defined in section 4(a),
253253 and amendments thereto, or unlawful destruction of a fertilized embryo, as
254254 defined in section 4(b), and amendments thereto.
255255 (d) (1) An attempt to commit a felony which prescribes a sentence on
256256 the drug grid shall reduce the prison term prescribed in the drug grid block
257257 for an underlying or completed crime by six months.
258258 (2) The provisions of this subsection shall not apply to a violation of
259259 attempting to commit a violation of K.S.A. 2022 Supp. 21-5703, and
260260 amendments thereto.
261261 (e) An attempt to commit a class A person misdemeanor is a class B
262262 person misdemeanor. An attempt to commit a class A nonperson
263263 misdemeanor is a class B nonperson misdemeanor.
264264 (f) An attempt to commit a class B or C misdemeanor is a class C
265265 misdemeanor.
266266 Sec. 6. K.S.A. 2022 Supp. 21-5302 is hereby amended to read as
267267 follows: 21-5302. (a) A conspiracy is an agreement with another person to
268268 commit a crime or to assist in committing a crime. No person may be
269269 convicted of a conspiracy unless an overt act in furtherance of such
270270 conspiracy is alleged and proved to have been committed by such person
271271 or by a co-conspirator.
272272 (b) It is immaterial to the criminal liability of a person charged with
273273 conspiracy that any other person with whom the defendant conspired
274274 lacked the actual intent to commit the underlying crime provided that the
275275 defendant believed the other person did have the actual intent to commit
276276 the underlying crime.
277277 (c) It shall be a defense to a charge of conspiracy that the accused
278278 voluntarily and in good faith withdrew from the conspiracy, and
279279 communicated the fact of such withdrawal to one or more of the accused
280280 person's co-conspirators, before any overt act in furtherance of the
281281 conspiracy was committed by the accused or by a co-conspirator.
282282 (d) (1) Conspiracy to commit an off-grid felony shall be ranked at
283283 nondrug severity level 2. Conspiracy to commit any other nondrug felony
284284 shall be ranked on the nondrug scale at two severity levels below the
285285 appropriate level for the underlying or completed crime. The lowest
286286 severity level for conspiracy to commit a nondrug felony shall be a
287287 severity level 10.
288288 (2) The provisions of this subsection shall not apply to a violation of
289289 conspiracy to commit the crime of:
290290 (A) Aggravated human trafficking, as defined in K.S.A. 2022 Supp.
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334334 21-5426(b), and amendments thereto, if the offender is 18 years of age or
335335 older and the victim is less than 14 years of age;
336336 (B) terrorism, as defined in K.S.A. 2022 Supp. 21-5421, and
337337 amendments thereto;
338338 (C) illegal use of weapons of mass destruction, as defined in K.S.A.
339339 2022 Supp. 21-5422, and amendments thereto;
340340 (D) rape, as defined in K.S.A. 2022 Supp. 21-5503(a)(3), and
341341 amendments thereto, if the offender is 18 years of age or older;
342342 (E) aggravated indecent liberties with a child, as defined in K.S.A.
343343 2022 Supp. 21-5506(b)(3), and amendments thereto, if the offender is 18
344344 years of age or older;
345345 (F) aggravated criminal sodomy, as defined in K.S.A. 2022 Supp. 21-
346346 5504(b)(1) or (2), and amendments thereto, if the offender is 18 years of
347347 age or older;
348348 (G) commercial sexual exploitation of a child, as defined in K.S.A.
349349 2022 Supp. 21-6422, and amendments thereto, if the offender is 18 years
350350 of age or older and the victim is less than 14 years of age;
351351 (H) sexual exploitation of a child, as defined in K.S.A. 2022 Supp.
352352 21-5510(a)(1) or (4), and amendments thereto, if the offender is 18 years
353353 of age or older and the child is less than 14 years of age;
354354 (I) aggravated internet trading in child pornography, as defined in
355355 K.S.A. 2022 Supp. 21-5514(b), and amendments thereto, if the offender is
356356 18 years of age or older and the child is less than 14 years of age; or
357357 (J) violations of the Kansas racketeer influenced and corrupt
358358 organization act, as described in K.S.A. 2022 Supp. 21-6329, and
359359 amendments thereto; or
360360 (K) unlawful performance of an abortion, as defined in section 4(a),
361361 and amendments thereto, or unlawful destruction of a fertilized embryo, as
362362 defined in section 4(b), and amendments thereto.
363363 (e) Conspiracy to commit a felony which prescribes a sentence on the
364364 drug grid shall reduce the prison term prescribed in the drug grid block for
365365 an underlying or completed crime by six months.
366366 (f) A conspiracy to commit a misdemeanor is a class C misdemeanor.
367367 Sec. 7. K.S.A. 2022 Supp. 21-5303 is hereby amended to read as
368368 follows: 21-5303. (a) Criminal solicitation is commanding, encouraging or
369369 requesting another person to commit a felony, attempt to commit a felony
370370 or aid and abet in the commission or attempted commission of a felony for
371371 the purpose of promoting or facilitating the felony.
372372 (b) It is immaterial under subsection (a) that the actor fails to
373373 communicate with the person solicited to commit a felony if the person's
374374 conduct was designed to effect a communication.
375375 (c) It is an affirmative defense that the actor, after soliciting another
376376 person to commit a felony, persuaded that person not to do so or otherwise
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420420 prevented the commission of the felony, under circumstances manifesting
421421 a complete and voluntary renunciation of the actor's criminal purposes.
422422 (d) (1) Criminal solicitation to commit an off-grid felony shall be
423423 ranked at nondrug severity level 3. Criminal solicitation to commit any
424424 other nondrug felony shall be ranked on the nondrug scale at three severity
425425 levels below the appropriate level for the underlying or completed crime.
426426 The lowest severity level for criminal solicitation to commit a nondrug
427427 felony shall be a severity level 10.
428428 (2) The provisions of this subsection shall not apply to a violation of
429429 criminal solicitation to commit the crime of:
430430 (A) Aggravated human trafficking, as defined in K.S.A. 2022 Supp.
431431 21-5426(b), and amendments thereto, if the offender is 18 years of age or
432432 older and the victim is less than 14 years of age;
433433 (B) terrorism, as defined in K.S.A. 2022 Supp. 21-5421, and
434434 amendments thereto;
435435 (C) illegal use of weapons of mass destruction, as defined in K.S.A.
436436 2022 Supp. 21-5422, and amendments thereto;
437437 (D) rape, as defined in K.S.A. 2022 Supp. 21-5503(a)(3), and
438438 amendments thereto, if the offender is 18 years of age or older;
439439 (E) aggravated indecent liberties with a child, as defined in K.S.A.
440440 2022 Supp. 21-5506(b)(3), and amendments thereto, if the offender is 18
441441 years of age or older;
442442 (F) aggravated criminal sodomy, as defined in K.S.A. 2022 Supp. 21-
443443 5504(b)(1) or (2), and amendments thereto, if the offender is 18 years of
444444 age or older;
445445 (G) commercial sexual exploitation of a child, as defined in K.S.A.
446446 2022 Supp. 21-6422, and amendments thereto, if the offender is 18 years
447447 of age or older and the victim is less than 14 years of age;
448448 (H) sexual exploitation of a child, as defined in K.S.A. 2022 Supp.
449449 21-5510(a)(1) or (4), and amendments thereto, if the offender is 18 years
450450 of age or older and the child is less than 14 years of age; or
451451 (I) aggravated internet trading in child pornography, as defined in
452452 K.S.A. 2022 Supp. 21-5514(b), and amendments thereto, if the offender is
453453 18 years of age or older and the child is less than 14 years of age; or
454454 (J) unlawful performance of an abortion, as defined in section 4(a),
455455 and amendments thereto, or unlawful destruction of a fertilized embryo, as
456456 defined in section 4(b), and amendments thereto.
457457 (e) Criminal solicitation to commit a felony which prescribes a
458458 sentence on the drug grid shall reduce the prison term prescribed in the
459459 drug grid block for an underlying or completed crime by six months.
460460 Sec. 8. K.S.A. 2022 Supp. 60-1901 is hereby amended to read as
461461 follows: 60-1901. (a) If the death of a person is caused by the wrongful act
462462 or omission of another, an action may be maintained for the damages
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506506 resulting therefrom and for punitive or exemplary damages if the former
507507 might have maintained the action had such person lived, in accordance
508508 with the provisions of this article, against the wrongdoer, or such
509509 wrongdoer's personal representative if such wrongdoer is deceased.
510510 (b) As used in article 19 of chapter 60 of the Kansas Statutes
511511 Annotated, and amendments thereto, the term "person" includes an unborn
512512 child.
513513 (c) As used in this section, the term "unborn child" means a living
514514 individual organism of the species homo sapiens, in utero, at any stage of
515515 gestation from fertilization to birth means the same as defined in section 4,
516516 and amendments thereto.
517517 (d) The provisions of this section shall not apply to a wrongful death
518518 action if the death is of an unborn child by means of:
519519 (1) Any act committed by the mother of the unborn child;
520520 (2) any lawful medical procedure performed by a physician or other
521521 licensed medical professional at the request of the pregnant woman or her
522522 legal guardian;
523523 (3) the lawful dispensation or administration of lawfully prescribed
524524 medication; or
525525 (4) a legal abortion an act performed as described in section 4(e),
526526 and amendments thereto.
527527 (e) If any provision or clause of this act or application thereof to any
528528 person or circumstance is held invalid, such invalidity shall not affect other
529529 provisions or applications of the act which can be given effect without the
530530 invalid provision or application, and to this end the provisions of this act
531531 are declared to be severable.
532532 Sec. 9. K.S.A. 2022 Supp. 60-1906 is hereby amended to read as
533533 follows: 60-1906. (a) No civil action may be commenced in any court for a
534534 claim of wrongful life or wrongful birth, and no damages may be
535535 recovered in any civil action for any physical condition of a minor that
536536 existed at the time of such minor's birth if the damages sought arise out of
537537 a claim that a person's action or omission contributed to such minor's
538538 mother not obtaining an abortion.
539539 (b) Nothing in this section shall be deemed to create any new cause of
540540 action, nor preclude any otherwise proper cause of action based on a claim
541541 that, but for a person's wrongful action or omission, the death or physical
542542 injury of the mother would not have occurred, or the handicap, disease or
543543 disability of an individual prior to birth would have been prevented, cured
544544 or ameliorated in a manner that preserved the health and life of such
545545 individual.
546546 (c) If any provision or clause of this act or application thereof to any
547547 person or circumstance is held invalid, such invalidity shall not affect other
548548 provisions or applications of the act which can be given effect without the
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592592 invalid provision or application, and to this end the provisions of this act
593593 are declared to be severable.
594594 (d) As used in this section:
595595 (1) "Abortion" has the same meaning as such term is means the same
596596 as defined in K.S.A. 65-6701 section 4, and amendments thereto.
597597 (2) "Claim of wrongful birth" means a cause of action brought by a
598598 parent, legal guardian or other individual legally required to provide for
599599 the support of a minor, which seeks damages, whether economic or
600600 noneconomic, as a result of a physical condition of such minor that existed
601601 at the time of such minor's birth, and which is based on a claim that a
602602 person's action or omission contributed to such minor's mother not
603603 obtaining an abortion.
604604 (3) "Claim of wrongful life" means a cause of action brought by, or
605605 on behalf of, a minor, which seeks damages, whether economic or
606606 noneconomic, for such minor as a result of a physical condition of such
607607 minor that existed at the time of such minor's birth, and which is based on
608608 a claim that a person's action or omission contributed to such minor's
609609 mother not obtaining an abortion.
610610 Sec. 10. K.S.A. 65-2401 is hereby amended to read as follows: 65-
611611 2401. As used in this act:
612612 (a) "Vital statistics" includes the registration, preparation,
613613 transcription, collection, compilation, and preservation of data pertaining
614614 to birth, adoption, legitimation, death, stillbirth, marriage, divorce,
615615 annulment of marriage, induced termination of pregnancy, and data
616616 incidental thereto.
617617 (b) "Live birth" means the complete expulsion or extraction from its
618618 mother of a human child, irrespective of the duration of pregnancy, which,
619619 after such expulsion or extraction, breathes or shows any other evidence of
620620 life such as beating of the heart, pulsation of the umbilical cord, or definite
621621 movement of voluntary muscles, whether or not the umbilical cord has
622622 been cut or the placenta is attached.
623623 (c) "Gestational age" means the age of the human child as measured
624624 in weeks as determined by either the last date of the mother's menstrual
625625 period, a sonogram conducted prior to the 20
626626 th
627627 week of pregnancy or the
628628 confirmed known date of conception.
629629 (d) "Stillbirth" means any complete expulsion or extraction from its
630630 mother of a human child the gestational age of which is not less than 20
631631 completed weeks, resulting in other than a live birth, as defined in this
632632 section, and which is not an induced termination of pregnancy.
633633 (e) "Induced termination of pregnancy" means abortion, as defined in
634634 K.S.A. 65-6701 section 4, and amendments thereto.
635635 (f) "Dead body" means a lifeless human body or such parts of a
636636 human body or the bones thereof from the state of which it reasonably may
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680680 be concluded that death recently occurred.
681681 (g) "Person in charge of interment" means any person who places or
682682 causes to be placed a stillborn child or dead body or the ashes, after
683683 cremation, in a grave, vault, urn or other receptacle, or otherwise disposes
684684 thereof.
685685 (h) "Secretary" means the secretary of health and environment.
686686 Sec. 11. K.S.A. 65-2837 is hereby amended to read as follows: 65-
687687 2837. As used in K.S.A. 65-2836, and amendments thereto, and in this
688688 section:
689689 (a) "Professional incompetency" means:
690690 (1) One or more instances involving failure to adhere to the
691691 applicable standard of care to a degree that constitutes gross negligence, as
692692 determined by the board.
693693 (2) Repeated instances involving failure to adhere to the applicable
694694 standard of care to a degree that constitutes ordinary negligence, as
695695 determined by the board.
696696 (3) A pattern of practice or other behavior that demonstrates a
697697 manifest incapacity or incompetence to practice the healing arts.
698698 (b) "Unprofessional conduct" means:
699699 (1) Solicitation of professional patronage through the use of
700700 fraudulent or false advertisements, or profiting by the acts of those
701701 representing themselves to be agents of the licensee.
702702 (2) Representing to a patient that a manifestly incurable disease,
703703 condition or injury can be permanently cured.
704704 (3) Assisting in the care or treatment of a patient without the consent
705705 of the patient, the attending physician or the patient's legal representatives.
706706 (4) The use of any letters, words or terms as an affix, on stationery, in
707707 advertisements or otherwise indicating that such person is entitled to
708708 practice a branch of the healing arts for which such person is not licensed.
709709 (5) Performing, procuring or aiding and abetting in the performance
710710 or procurement of a criminal an abortion.
711711 (6) Willful betrayal of confidential information.
712712 (7) Advertising professional superiority or the performance of
713713 professional services in a superior manner.
714714 (8) Advertising to guarantee any professional service or to perform
715715 any operation painlessly.
716716 (9) Participating in any action as a staff member of a medical care
717717 facility that is designed to exclude or that results in the exclusion of any
718718 person licensed to practice medicine and surgery from the medical staff of
719719 a nonprofit medical care facility licensed in this state because of the
720720 branch of the healing arts practiced by such person or without just cause.
721721 (10) Failure to effectuate the declaration of a qualified patient as
722722 provided in K.S.A. 65-28,107(a), and amendments thereto.
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766766 (11) Prescribing, ordering, dispensing, administering, selling,
767767 supplying or giving any amphetamines or sympathomimetic amines,
768768 except as authorized by K.S.A. 65-2837a, and amendments thereto.
769769 (12) Conduct likely to deceive, defraud or harm the public.
770770 (13) Making a false or misleading statement regarding the licensee's
771771 skill or the efficacy or value of the drug, treatment or remedy prescribed
772772 by the licensee or at the licensee's direction in the treatment of any disease
773773 or other condition of the body or mind.
774774 (14) Aiding or abetting the practice of the healing arts by an
775775 unlicensed, incompetent or impaired person.
776776 (15) Allowing another person or organization to use the licensee's
777777 license to practice the healing arts.
778778 (16) Commission of any act of sexual abuse, misconduct or other
779779 improper sexual contact that exploits the licensee-patient relationship with
780780 a patient or a person responsible for health care decisions concerning such
781781 patient.
782782 (17) The use of any false, fraudulent or deceptive statement in any
783783 document connected with the practice of the healing arts including the
784784 intentional falsifying or fraudulent altering of a patient or medical care
785785 facility record.
786786 (18) Obtaining any fee by fraud, deceit or misrepresentation.
787787 (19) Directly or indirectly giving or receiving any fee, commission,
788788 rebate or other compensation for professional services not actually and
789789 personally rendered, other than through the legal functioning of lawful
790790 professional partnerships, corporations, limited liability companies or
791791 associations.
792792 (20) Failure to transfer patient records to another licensee when
793793 requested to do so by the subject patient or by such patient's legally
794794 designated representative.
795795 (21) Performing unnecessary tests, examinations or services that have
796796 no legitimate medical purpose.
797797 (22) Charging an excessive fee for services rendered.
798798 (23) Prescribing, dispensing, administering or distributing a
799799 prescription drug or substance, including a controlled substance, in an
800800 improper or inappropriate manner, or for other than a valid medical
801801 purpose, or not in the course of the licensee's professional practice.
802802 (24) Repeated failure to practice healing arts with that level of care,
803803 skill and treatment that is recognized by a reasonably prudent similar
804804 practitioner as being acceptable under similar conditions and
805805 circumstances.
806806 (25) Failure to keep written medical records that accurately describe
807807 the services rendered to the patient, including patient histories, pertinent
808808 findings, examination results and test results.
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852852 (26) Delegating professional responsibilities to a person when the
853853 licensee knows or has reason to know that such person is not qualified by
854854 training, experience or licensure to perform them.
855855 (27) Using experimental forms of therapy without proper informed
856856 patient consent, without conforming to generally accepted criteria or
857857 standard protocols, without keeping detailed legible records or without
858858 having periodic analysis of the study and results reviewed by a committee
859859 or peers.
860860 (28) Prescribing, dispensing, administering or distributing an anabolic
861861 steroid or human growth hormone for other than a valid medical purpose.
862862 Bodybuilding, muscle enhancement or increasing muscle bulk or strength
863863 through the use of an anabolic steroid or human growth hormone by a
864864 person who is in good health is not a valid medical purpose.
865865 (29) Referring a patient to a health care entity for services if the
866866 licensee has a significant investment interest in the health care entity,
867867 unless the licensee informs the patient in writing of such significant
868868 investment interest and that the patient may obtain such services
869869 elsewhere.
870870 (30) Failing to properly supervise, direct or delegate acts that
871871 constitute the healing arts to persons who perform professional services
872872 pursuant to such licensee's direction, supervision, order, referral,
873873 delegation or practice protocols.
874874 (31) Violating K.S.A. 65-6703, and amendments thereto.
875875 (32) Charging, billing or otherwise soliciting payment from any
876876 patient, patient's representative or insurer for anatomic pathology services,
877877 if such services are not personally rendered by the licensee or under such
878878 licensee's direct supervision. As used in this subsection, "anatomic
879879 pathology services" means the gross or microscopic examination of
880880 histologic processing of human organ tissue or the examination of human
881881 cells from fluids, aspirates, washings, brushings or smears, including blood
882882 banking services, and subcellular or molecular pathology services,
883883 performed by or under the supervision of a person licensed to practice
884884 medicine and surgery or a clinical laboratory. Nothing in this subsection
885885 shall be construed to prohibit billing for anatomic pathology services by:
886886 (A) A hospital;
887887 (B) a clinical laboratory when samples are transferred between
888888 clinical laboratories for the provision of anatomic pathology services; or
889889 (C) a physician providing services to a patient pursuant to a medical
890890 retainer agreement in compliance with K.S.A. 65-4978, and amendments
891891 thereto, when the bill to the patient for such services:
892892 (i) Identifies the laboratory or physician that performed the services;
893893 (ii) discloses in writing to the patient the actual amount charged by
894894 the physician or laboratory that performed the service; and
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938938 (iii) is consistent with rules and regulations adopted by the board for
939939 appropriate billing standards applicable to such services when furnished
940940 under these agreements.
941941 (33) Engaging in conduct that violates patient trust and exploits the
942942 licensee-patient relationship for personal gain.
943943 (34) Obstructing a board investigation including, but not limited to,
944944 engaging in one or more of the following acts:
945945 (A) Falsifying or concealing a material fact;
946946 (B) knowingly making or causing to be made any false or misleading
947947 statement or writing; or
948948 (C) other acts or conduct likely to deceive or defraud the board.
949949 (c) "False advertisement" means any advertisement that is false,
950950 misleading or deceptive in a material respect. In determining whether any
951951 advertisement is misleading, there shall be taken into account not only
952952 representations made or suggested by statement, word, design, device,
953953 sound or any combination thereof, but also the extent to which the
954954 advertisement fails to reveal facts material in the light of such
955955 representations made.
956956 (d) "Advertisement" means all representations disseminated in any
957957 manner or by any means for the purpose of inducing, or that are likely to
958958 induce, directly or indirectly, the purchase of professional services.
959959 (e) "Licensee" for purposes of this section and K.S.A. 65-2836, and
960960 amendments thereto, means all persons issued a license, permit or special
961961 permit pursuant to article 28 of chapter 65 of the Kansas Statutes
962962 Annotated, and amendments thereto.
963963 (f) "License" for purposes of this section and K.S.A. 65-2836, and
964964 amendments thereto, means any license, permit or special permit granted
965965 under article 28 of chapter 65 of the Kansas Statutes Annotated, and
966966 amendments thereto.
967967 (g) "Health care entity" means any corporation, firm, partnership or
968968 other business entity that provides services for diagnosis or treatment of
969969 human health conditions and that is owned separately from a referring
970970 licensee's principle practice.
971971 (h) "Significant investment interest" means ownership of at least 10%
972972 of the value of the firm, partnership or other business entity that owns or
973973 leases the health care entity, or ownership of at least 10% of the shares of
974974 stock of the corporation that owns or leases the health care entity.
975975 Sec. 12. K.S.A. 65-6731 is hereby amended to read as follows: 65-
976976 6731. As used in K.S.A. 65-6731 through 65-6738, and amendments
977977 thereto:
978978 (a) "Abortion" has the same meaning as such term is means the same
979979 as defined in K.S.A. 65-6701 section 4, and amendments thereto.
980980 (b) "Health benefit plan" means any hospital or medical expense
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10241024 policy, health, hospital or medical services corporation contract, and a plan
10251025 provided by a municipal group-funded pool, or a health maintenance
10261026 organization contract offered by any employer or any certificate issued
10271027 under any such policy, contract or plan.
10281028 (c) "Health care entity" means an individual physician or other health
10291029 care professional, a hospital, a provider-sponsored organization, a health
10301030 maintenance organization or any other health care facility or organization.
10311031 (d) "School district" means any public school district organized under
10321032 the laws of this state.
10331033 (e) "State agency" has the same meaning as such term is means the
10341034 same as defined in K.S.A. 75-3701, and amendments thereto.
10351035 Sec. 13. K.S.A. 65-6732 is hereby amended to read as follows: 65-
10361036 6732. (a) The legislature hereby finds and declares the following:
10371037 (1) The life of each human being begins at fertilization;
10381038 (2) unborn children have interests in life, health and well-being that
10391039 should be protected; and
10401040 (3) the parents of unborn children have protectable interests in the
10411041 life, health and well-being of the unborn children of such parents.
10421042 (b) On and after July 1, 2013, The laws of this state shall be
10431043 interpreted and construed to acknowledge on behalf of the unborn child at
10441044 every stage of development, all the rights, privileges and immunities
10451045 available to other persons, citizens and residents of this state, subject only
10461046 to as outlined in the constitution of the United States, and decisional
10471047 interpretations thereof by the United States supreme court and specific
10481048 provisions to the contrary in the Kansas the constitution of the state of
10491049 Kansas and the Kansas Statutes Annotated, and to treat as void and of no
10501050 effect all rulings of any district or appellate court of this state, rules and
10511051 regulations and executive orders that would deprive an unborn child of the
10521052 right to life.
10531053 (c) As used in this section:
10541054 (1) "Fertilization" means the fusion of a human spermatozoon with a
10551055 human ovum.
10561056 (2) "Unborn children" or "unborn child" shall include all unborn
10571057 children or the offspring of human beings from the moment of fertilization
10581058 until birth at every stage of biological development.
10591059 (d) Nothing in this section shall be construed as creating a cause of
10601060 action against a woman for indirectly harming her unborn child by failing
10611061 to properly care for herself or by failing to follow any particular program
10621062 of prenatal care.
10631063 Sec. 14. K.S.A. 65-67a01 is hereby amended to read as follows: 65-
10641064 67a01. As used in this act:
10651065 (a) "Abortion" means an abortion as defined by K.S.A. 65-6701 in
10661066 section 4, and amendments thereto.
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11101110 (b) (1) "Consideration" means:
11111111 (A) Any payment made or debt incurred;
11121112 (B) any gift, honorarium or recognition of value bestowed;
11131113 (C) any price, charge or fee which is waived, forgiven, reduced or
11141114 indefinitely delayed;
11151115 (D) any loan or debt which is canceled or otherwise forgiven; or
11161116 (E) the transfer of any item from one person to another or provision
11171117 of any service or granting of any opportunity for which a charge is
11181118 customarily made, without charge or for a reduced charge.
11191119 (2) "Consideration" shall not mean:
11201120 (A) A payment in an amount not to exceed $25 for the cost of
11211121 transporting, processing, preserving and storing fetal tissue; or
11221122 (B) a payment in an amount not to exceed the actual cost, as
11231123 documented by the delivery service, of transporting fetal tissue.
11241124 (c) "Delivery service" means a common carrier as defined by K.S.A.
11251125 66-105, and amendments thereto, or other person or entity used to
11261126 transport fetal tissue.
11271127 (d) "Fetal tissue" means any tissue, cells or organs obtained from a
11281128 dead human embryo or fetus after an abortion or after a miscarriage or a
11291129 stillbirth.
11301130 (e) "Person" means a person as defined by K.S.A. 65-425, and
11311131 amendments thereto.
11321132 (f) "Stillbirth" means a stillbirth as defined by K.S.A. 65-2401, and
11331133 amendments thereto.
11341134 Sec. 15. K.S.A. 65-67a02 is hereby amended to read as follows: 65-
11351135 67a02. Except as specifically provided by this act in K.S.A. 65-67a07, and
11361136 amendments thereto, nothing in this act shall be construed as either
11371137 permitting or prohibiting the use of fetal tissue for any type of scientific,
11381138 research, laboratory or other kind of experimentation either prior to or
11391139 subsequent to any abortion or miscarriage or stillbirth.
11401140 Sec. 16. K.S.A. 65-67a04 is hereby amended to read as follows: 65-
11411141 67a04. (a) No person shall solicit, offer, knowingly acquire or accept or
11421142 transfer any fetal tissue for consideration.
11431143 (b) No person shall solicit, offer or knowingly acquire or accept or
11441144 transfer any fetal tissue for the purpose of transplantation of such tissue
11451145 into another person if:
11461146 (1) The fetal tissue will be or is obtained pursuant to an abortion; and
11471147 (2) (A) the donation of such fetal tissue will be or is made pursuant to
11481148 a promise to the donating individual that the donated tissue will be
11491149 transplanted into a recipient specified by such donating individual;
11501150 (B) such fetal tissue will be transplanted into a relative of the
11511151 donating individual; or
11521152 (C) the person who solicits or knowingly acquires or accepts the
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11961196 donation of such fetal tissue has provided consideration for the costs
11971197 associated with such abortion.
11981198 (c) Any person who intentionally, knowingly or recklessly violates
11991199 this section shall be guilty of a severity level 2, nonperson felony.
12001200 Sec. 17. K.S.A. 65-67a07 is hereby amended to read as follows: 65-
12011201 67a07. (a) No person shall use fetal organs or tissue for medical, scientific,
12021202 experimental or therapeutic use without the voluntary and informed
12031203 consent of the woman donating such tissue. Such consent shall not be
12041204 discussed or obtained prior to obtaining the consent required under K.S.A.
12051205 65-6709, and amendments thereto mother or father of the unborn child
12061206 whose tissue is being donated.
12071207 (b) A person who intentionally, knowingly or recklessly violates this
12081208 section shall be guilty of a severity level 2, nonperson felony.
12091209 Sec. 18. K.S.A. 76-3308 is hereby amended to read as follows: 76-
12101210 3308.(a) The authority shall have all the powers necessary to carry out the
12111211 purposes and provisions of this act, including, without limitation, the
12121212 following powers to:
12131213 (1) Have the duties, privileges, immunities, rights, liabilities and
12141214 disabilities of a body corporate and a political instrumentality of the state;
12151215 (2) have perpetual existence and succession;
12161216 (3) adopt, have and use a seal and to alter the same at its pleasure;
12171217 (4) sue and be sued in its own name;
12181218 (5) make and execute contracts, guarantees or any other instruments
12191219 and agreements necessary or convenient for the exercise of its powers and
12201220 functions including, without limitation, to make and execute contracts with
12211221 hospitals or other health care businesses to operate and manage any or all
12221222 of the hospital facilities or operations and to incur liabilities and secure the
12231223 obligations of any entity or individual;
12241224 (6) borrow money and to issue bonds evidencing the same and pledge
12251225 all or any part of the authority's assets therefor;
12261226 (7) purchase, lease, trade, exchange or otherwise acquire, maintain,
12271227 hold, improve, mortgage, sell, lease and dispose of personal property,
12281228 whether tangible or intangible, and any interest therein; and to purchase,
12291229 lease, trade, exchange or otherwise acquire real property or any interest
12301230 therein, and to maintain, hold, improve, mortgage, lease and otherwise
12311231 transfer such real property, so long as such transactions do not conflict
12321232 with the mission of the authority as specified in this act;
12331233 (8) incur or assume indebtedness to, and enter into contracts with the
12341234 Kansas development finance authority, which is authorized to borrow
12351235 money and provide financing for the authority;
12361236 (9) develop policies and procedures generally applicable to the
12371237 procurement of goods, services and construction, based upon sound
12381238 business practices;
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12821282 (10) contract for and to accept any gifts, grants and loans of funds,
12831283 property, or any other aid in any form from the federal government, the
12841284 state, any state agency, or any other source, or any combination thereof,
12851285 and to comply with the provisions of the terms and conditions thereof;
12861286 (11) acquire space, equipment, services, supplies and insurance
12871287 necessary to carry out the purposes of this act;
12881288 (12) deposit any moneys of the authority in any banking institution
12891289 within or without the state or in any depository authorized to receive such
12901290 deposits, one or more persons to act as custodians of the moneys of the
12911291 authority, to give surety bonds in such amounts in form and for such
12921292 purposes as the board requires;
12931293 (13) procure such insurance, participate in such insurance plans or
12941294 provide such self insurance or both as it deems necessary or convenient to
12951295 carry out the purposes and provisions of this act; the purchase of
12961296 insurance, participation in an insurance plan or creation of a self-insurance
12971297 fund by the authority shall not be deemed as a waiver or relinquishment of
12981298 any sovereign immunity to which the authority or its officers, directors,
12991299 employees or agents are otherwise entitled;
13001300 (14) appoint, supervise and set the salary and compensation of a
13011301 president of the authority who shall be appointed by and serve at the
13021302 pleasure of the board;
13031303 (15) fix, revise, charge and collect rates, rentals, fees and other
13041304 charges for the services or facilities furnished by or on behalf of the
13051305 authority, and to establish policies and procedures regarding any such
13061306 service rendered for the use, occupancy or operation of any such facility;
13071307 such charges and policies and procedures not to be subject to supervision
13081308 or regulation by any commission, board, bureau or agency of the state; and
13091309 (16) do any and all things necessary or convenient to carry out the
13101310 authority's purposes and exercise the powers given in this act.
13111311 (b) The authority may create, own in whole or in part, or otherwise
13121312 acquire or dispose of any entity organized for a purpose related to or in
13131313 support of the mission of the authority.
13141314 (c) The authority may participate in joint ventures with individuals,
13151315 corporations, governmental bodies or agencies, partnerships, associations,
13161316 insurers or other entities to facilitate any activities or programs consistent
13171317 with the public purpose and intent of this act.
13181318 (d) The authority may create a nonprofit entity or entities for the
13191319 purpose of soliciting, accepting and administering grants, outright gifts and
13201320 bequests, endowment gifts and bequests and gifts and bequests in trust
13211321 which entity or entities shall not engage in trust business.
13221322 (e) In carrying out any activities authorized by this act, the authority
13231323 may provide appropriate assistance, including the making of loans and
13241324 providing time of employees, to corporations, partnerships, associations,
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13681368 joint ventures or other entities, whether or not such corporations,
13691369 partnerships, associations, joint ventures or other entities are owned or
13701370 controlled in whole or in part, directly or indirectly, by the authority.
13711371 (f) Effective with the transfer date, all moneys of the authority shall
13721372 be deposited in one or more banks or trust companies in one or more
13731373 special accounts. All banks and trust companies are authorized to give
13741374 security for such deposits if required by the authority. The moneys in such
13751375 accounts shall be paid out on a warrant or other orders of the treasurer of
13761376 the authority or any such other person or persons as the authority may
13771377 authorize to execute such warrants or orders.
13781378 (g) Notwithstanding any provision of law to the contrary, the
13791379 authority, effective with the transfer date, may invest the authority's
13801380 operating funds in any obligations or securities as authorized by the board.
13811381 The board shall adopt written investment guidelines.
13821382 (h) The authority is authorized to negotiate contracts with one or
13831383 more qualified parties to provide collection services. The selection of a
13841384 collection services provider shall be based on responses to a request for
13851385 proposals from qualified professional firms and shall be administered in
13861386 accordance with policies adopted by the board.
13871387 (i) Notwithstanding any provision of law to the contrary, no abortion,
13881388 as defined in section 4, and amendments thereto, shall be performed,
13891389 except in the event of a medical emergency, in any medical facility,
13901390 hospital or clinic owned, leased or operated by the authority. The
13911391 provisions of this subsection are not applicable to any member of the
13921392 physician faculty of the university of Kansas school of medicine when
13931393 such abortion is performed outside the scope of such member's
13941394 employment on property not owned, leased or operated by the authority.
13951395 As used in this subsection, "medical emergency" means a condition that, in
13961396 reasonable medical judgment, so complicates the medical condition of the
13971397 pregnant woman as to necessitate the immediate abortion of her pregnancy
13981398 to avert the death of the woman or for which a delay necessary to comply
13991399 with the applicable statutory requirements will create serious risk of
14001400 substantial and irreversible physical impairment of a major bodily
14011401 function. No condition shall be deemed a medical emergency if based on a
14021402 claim or diagnosis that the woman will engage in conduct which would
14031403 result in her death or in substantial and irreversible physical impairment of
14041404 a major bodily function.
14051405 Sec. 19. K.S.A. 2022 Supp. 79-32,182b is hereby amended to read as
14061406 follows: 79-32,182b. (a) For all taxable years commencing after December
14071407 31, 2022, a credit shall be allowed against the tax imposed by the Kansas
14081408 income tax act on the Kansas taxable income of a taxpayer for
14091409 expenditures in research and development activities conducted within this
14101410 state in an amount equal to 10% of the amount by which the amount
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14541454 expended for such activities in the taxable year of the taxpayer exceeds the
14551455 taxpayer's average of the actual expenditures for such purposes made in
14561456 such taxable year and the next preceding two taxable years.
14571457 (b) In any one taxable year, the amount of such credit allowable for
14581458 deduction from the taxpayer's tax liability shall not exceed 25% of the total
14591459 amount of such credit plus any applicable carry forward amount. The
14601460 amount by which that portion of the credit allowed by subsections (a) and
14611461 (b) to be claimed in any one taxable year exceeds the taxpayer's tax
14621462 liability in such year may be carried forward until the total amount of the
14631463 credit is used.
14641464 (c) As used in this section, the term "expenditures in research and
14651465 development activities" means expenditures made for such purposes, other
14661466 than expenditures of moneys made available to the taxpayer pursuant to
14671467 federal or state law, which are treated as expenses allowable for deduction
14681468 under the provisions of the federal internal revenue code of 1986, as
14691469 amended, except that for taxable years commencing after December 31,
14701470 2013, expenditures in research and development activities shall not include
14711471 any expenditures for the performance of any abortion, as defined in K.S.A.
14721472 65-6701 section 4, and amendments thereto.
14731473 (d) For tax year 2023 and all tax years thereafter, the income tax
14741474 credit allowed pursuant to this section shall be transferable by a taxpayer
14751475 without a current tax liability. The tax credit may be transferred to any
14761476 person and be claimed by the transferee as a credit against the transferee's
14771477 Kansas income tax liability in the tax year when it was transferred. The
14781478 credit shall be claimed and may be carried forward by the transferee as
14791479 provided and limited by subsection (b). No person shall be entitled to a
14801480 refund for the transferred tax credit. Only the full credit may be
14811481 transferred, and the credit may only be transferred one time.
14821482 Documentation of any credit acquired by transfer shall be provided by the
14831483 taxpayer or the transferee in the manner required by the secretary of
14841484 revenue.
14851485 Sec. 20. K.S.A. 79-32,195 is hereby amended to read as follows: 79-
14861486 32,195. As used in this act, the following words and phrases shall have the
14871487 meanings ascribed to them herein: (a) "Business firm" means any business
14881488 entity authorized to do business in the state of Kansas which that is subject
14891489 to the state income tax imposed by the provisions of the Kansas income
14901490 tax act, any individual subject to the state income tax imposed by the
14911491 provisions of the Kansas income tax act, any national banking association,
14921492 state bank, trust company or savings and loan association paying an annual
14931493 tax on its net income pursuant to article 11 of chapter 79 of the Kansas
14941494 Statutes Annotated, and amendments thereto, or any insurance company
14951495 paying the premium tax and privilege fees imposed pursuant to K.S.A. 40-
14961496 252, and amendments thereto;
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15401540 (b) "Community services" means:
15411541 (1) The conduct of activities which that meet a demonstrated
15421542 community need and which that are designed to achieve improved
15431543 educational and social services for Kansas children and their families, and
15441544 which that are coordinated with communities including, but not limited to,
15451545 social and human services organizations that address the causes of poverty
15461546 through programs and services that assist low income persons in the areas
15471547 of employment, food, housing, emergency assistance and health care;
15481548 (2) crime prevention;
15491549 (3) health care services; and
15501550 (4) youth apprenticeship and technical training.
15511551 (c) "Crime prevention" means any nongovernmental activity which
15521552 that aids in the prevention of crime.
15531553 (d) "Youth apprenticeship and technical training" means conduct of
15541554 activities which that are designed to improve the access to and quality of
15551555 apprenticeship and technical training which that support an emphasis on
15561556 rural construction projects as well as the necessary equipment, facilities
15571557 and supportive mentorship for youth apprenticeships and technical
15581558 training.
15591559 (e) "Community service organization" means any organization
15601560 performing community services in Kansas and which that:
15611561 (1) Has obtained a ruling from the internal revenue service of the
15621562 United States department of the treasury that such organization is exempt
15631563 from income taxation under the provisions of section 501(c)(3) of the
15641564 federal internal revenue code; or
15651565 (2) is incorporated in the state of Kansas or another state as a
15661566 nonstock, nonprofit corporation; or
15671567 (3) has been designated as a community development corporation by
15681568 the United States government under the provisions of title VII of the
15691569 economic opportunity act of 1964; or
15701570 (4) is chartered by the United States congress.
15711571 (f) "Contributions" shall mean and include means and includes the
15721572 donation of cash, services or property other than used clothing in an
15731573 amount or value of $250 or more. Stocks and bonds contributed shall be
15741574 valued at the stock market price on the date of transfer. Services
15751575 contributed shall be valued at the standard billing rate for not-for-profit
15761576 clients. Personal property items contributed shall be valued at the lesser of
15771577 its fair market value or cost to the donor and may be inclusive of costs
15781578 incurred in making the contribution, but shall not include sales tax.
15791579 Contributions of real estate are allowable for credit only when title thereto
15801580 is in fee simple absolute and is clear of any encumbrances. The amount of
15811581 credit allowable shall be based upon the lesser of two current independent
15821582 appraisals conducted by state licensed appraisers.
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16261626 (g) "Health care services" shall include, but not be includes, but is not
16271627 limited to, the following: Services provided by local health departments,
16281628 city, county or district hospitals, city or county nursing homes, or other
16291629 residential institutions, preventive health care services offered by a
16301630 community service organization including immunizations, prenatal care,
16311631 the postponement of entry into nursing homes by home health care
16321632 services, and community based services for persons with a disability,
16331633 mental health services, indigent health care, physician or health care
16341634 worker recruitment, health education, emergency medical services,
16351635 services provided by rural health clinics, integration of health care
16361636 services, home health services and services provided by rural health
16371637 networks, except that for taxable years commencing after December 31,
16381638 2013, "health care services shall" does not include any service involving
16391639 the performance of any abortion, as defined in K.S.A. 65-6701 section 4,
16401640 and amendments thereto.
16411641 (h) "Rural community" means any city having a population of fewer
16421642 than 15,000 located in a county that is not part of a standard metropolitan
16431643 statistical area as defined by the United States department of commerce or
16441644 its successor agency. However, any such city located in a county defined
16451645 as a standard metropolitan statistical area shall be deemed a rural
16461646 community if a substantial number of persons in such county derive their
16471647 income from agriculture and, in any county where there is only one city
16481648 within the county which has a population of more than 15,000 and which
16491649 classifies as a standard metropolitan statistical area, all other cities in that
16501650 county having a population of less than 15,000 shall be deemed a rural
16511651 community.
16521652 Sec. 21. K.S.A. 2022 Supp. 79-32,261 is hereby amended to read as
16531653 follows: 79-32,261. (a) (1) On and after July 1, 2008, any taxpayer who
16541654 contributes in the manner prescribed by this paragraph to a community
16551655 college located in Kansas for capital improvements, to a technical college
16561656 for deferred maintenance or the purchase of technology or equipment or to
16571657 a postsecondary educational institution located in Kansas for deferred
16581658 maintenance, shall be allowed a credit against the tax imposed by the
16591659 Kansas income tax act, the premium tax or privilege fees imposed
16601660 pursuant to K.S.A. 40-252, and amendments thereto, or the privilege tax as
16611661 measured by net income of financial institutions imposed pursuant to
16621662 article 11 of chapter 79 of the Kansas Statutes Annotated, and amendments
16631663 thereto. The tax credit allowed by this paragraph is applicable for the tax
16641664 year 2008 for any contributions made on and after July 1, 2008, and for the
16651665 tax years 2009, 2010, 2011 and 2012 for any contributions made during
16661666 the entire tax year. The amount of the credit allowed by this paragraph
16671667 shall not exceed 60% of the total amount contributed during the taxable
16681668 year by the taxpayer to a community college or a technical college located
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17121712 in Kansas for such purposes. The amount of the credit allowed by this
17131713 paragraph shall not exceed 50% of the total amount contributed during the
17141714 taxable year by the taxpayer to a postsecondary educational institution for
17151715 such purposes. If the amount of the credit allowed by this paragraph for a
17161716 taxpayer who contributes to a community college or a technical college
17171717 exceeds the taxpayer's income tax liability imposed by the Kansas income
17181718 tax act, such excess amount shall be refunded to the taxpayer. If the
17191719 amount of the tax credit for a taxpayer who contributes to a postsecondary
17201720 educational institution exceeds the taxpayer's income tax liability for the
17211721 taxable year, the amount which exceeds the tax liability may be carried
17221722 over for deduction from the taxpayer's income tax liability in the next
17231723 succeeding taxable year or years until the total amount of the tax credit has
17241724 been deducted from tax liability, except that no such tax credit shall be
17251725 carried over for deduction after the third taxable year succeeding the
17261726 taxable year in which the contribution is made. Prior to the issuance of any
17271727 tax credits pursuant to this paragraph, the structure of the process in which
17281728 contributions received by a community college, a technical college or a
17291729 postsecondary educational institution qualify as tax credits allowed and
17301730 issued pursuant to this paragraph shall be developed by a community
17311731 college, a technical college and a postsecondary educational institution in
17321732 consultation with the secretary of revenue and the foundation or
17331733 endowment association of any such community college, technical college
17341734 or postsecondary educational institution in a manner that complies with
17351735 requirements specified in the federal internal revenue code of 1986, as
17361736 amended, so that contributions qualify as charitable contributions
17371737 allowable as deductions from federal adjusted gross income.
17381738 (2) On and after July 1, 2022, any taxpayer who contributes in the
17391739 manner prescribed by this paragraph to a community college or technical
17401740 college located in Kansas for capital improvements, deferred maintenance
17411741 or the purchase of technology or equipment shall be allowed a credit
17421742 against the tax imposed by the Kansas income tax act, the premium tax or
17431743 privilege fees imposed pursuant to K.S.A. 40-252, and amendments
17441744 thereto, or the privilege tax as measured by net income of financial
17451745 institutions imposed pursuant to article 11 of chapter 79 of the Kansas
17461746 Statutes Annotated, and amendments thereto. The tax credit allowed by
17471747 this paragraph is applicable for the tax year 2022 for any contributions
17481748 made on and after July 1, 2022, and for the tax years 2023, 2024, 2025 and
17491749 2026 for any contributions made during the entire tax year. The amount of
17501750 the credit allowed by this paragraph shall equal 60% of the total amount
17511751 contributed during the taxable year by the taxpayer to a community college
17521752 or a technical college located in Kansas for such purposes. Prior to the
17531753 issuance of any tax credits pursuant to this paragraph, the structure of the
17541754 process in which contributions received by a community college or
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17981798 technical college qualify as tax credits allowed and issued pursuant to this
17991799 paragraph shall be developed by a community college and technical
18001800 college in consultation with the secretary of revenue and the foundation or
18011801 endowment association of any such community college or technical
18021802 college in a manner that complies with requirements specified in the
18031803 federal internal revenue code of 1986, as amended, so that contributions
18041804 qualify as charitable contributions allowable as deductions from federal
18051805 adjusted gross income.
18061806 (b) (1) Upon receipt of any contributions to a community college
18071807 made pursuant to the provisions of subsection (a)(1), the treasurer of the
18081808 community college shall deposit such contributions to the credit of the
18091809 capital outlay fund of such community college established as provided by
18101810 K.S.A. 71-501a, and amendments thereto. Expenditures from such fund
18111811 shall be made for the purposes described in K.S.A. 71-501(a), and
18121812 amendments thereto, except that expenditures shall not be made from such
18131813 fund for new construction or the acquisition of real property for use as
18141814 building sites or for educational programs.
18151815 (2) Upon receipt of any contributions to a technical college made
18161816 pursuant to the provisions of subsection (a)(1), such contributions shall be
18171817 deposited to the credit of a deferred maintenance fund or a technology and
18181818 equipment fund established by the technical college which received the
18191819 contribution. Expenditures from such fund shall be made only for the
18201820 purpose as provided in subsection (b)(1).
18211821 (3) Upon receipt of any such contributions to a postsecondary
18221822 educational institution made pursuant to the provisions of subsection (a)
18231823 (1), such contributions shall be deposited to the credit of the appropriate
18241824 deferred maintenance support fund of the postsecondary educational
18251825 institution that received the contribution. Expenditures from such fund
18261826 shall be made only for the purposes designated for such fund pursuant to
18271827 law.
18281828 (4) Upon receipt of any such contributions to a community college or
18291829 technical college made pursuant to the provisions of subsection (a)(2), the
18301830 treasurer of the community college or technical college shall deposit such
18311831 contributions to the credit of the capital outlay fund of such community
18321832 college or technical college established as provided by K.S.A. 71-501a,
18331833 and amendments thereto. Expenditures from such fund shall be made for
18341834 the purposes designated for such fund pursuant to law.
18351835 (c) (1) In no event shall the total amount of credits allowed under
18361836 subsection (a)(1) for taxpayers who contribute to any one such community
18371837 college or technical college exceed the following amounts: For the tax year
18381838 2008, an amount not to exceed $78,125; for the tax year 2009, an amount
18391839 not to exceed $156,250; and for the tax years 2010, 2011 and 2012, an
18401840 amount not to exceed $208,233.33.
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18841884 (2) In no event shall the total of credits allowed under subsection (a)
18851885 (1) for taxpayers who contribute to postsecondary educational institutions
18861886 exceed the following amounts: For the tax year 2008, an amount not to
18871887 exceed $5,625,000; for the tax year 2009, an amount not to exceed
18881888 $11,250,000; and for the tax years 2010, 2011 and 2012, an amount not to
18891889 exceed $15,000,000. Except as otherwise provided, the allocation of such
18901890 tax credits for each individual state educational institution shall be
18911891 determined by the state board of regents in consultation with the secretary
18921892 of revenue and the university foundation or endowment association of
18931893 each postsecondary educational institution, and such determination shall
18941894 be completed prior to the issuance of any tax credits pursuant to subsection
18951895 (a)(1). Not more than 40% of the total of credits allowed under subsection
18961896 (a)(1) shall be allocated to any one postsecondary educational institution
18971897 unless all such postsecondary educational institutions approve an
18981898 allocation to any one such postsecondary educational institution which
18991899 exceeds 40% of the total of such credits allowed under subsection (a)(1).
19001900 (3) For the tax years 2022 through 2026, the amount of such credit
19011901 awarded under subsection (a)(2) for each taxpayer shall not exceed
19021902 $250,000 per tax year.
19031903 (4) In no event shall the total of credits allowed under subsection (a)
19041904 (2) for contributions to any one community college or technical college
19051905 exceed $500,000 per tax year.
19061906 (5) In no event shall the total of credits allowed under subsection (a)
19071907 (2) exceed $5,000,000 for each tax year that the credit remains in effect.
19081908 (d) As used in this section:
19091909 (1) "Community college" means a community college established
19101910 under the provisions of the community college act;
19111911 (2) "deferred maintenance" means the maintenance, repair,
19121912 reconstruction or rehabilitation of a building located at a technical college
19131913 or a postsecondary educational institution which has been deferred, any
19141914 utility systems relating to such building, any life-safety upgrades to such
19151915 building and any improvements necessary to be made to such building in
19161916 order to comply with the requirements of the Americans with disabilities
19171917 act or other federal or state law, except that for taxable years commencing
19181918 after December 31, 2013, deferred maintenance shall not include any
19191919 maintenance, repair, reconstruction or rehabilitation of any building in
19201920 which any abortion, as defined in K.S.A. 65-6701 section 4, and
19211921 amendments thereto, is performed;
19221922 (3) "postsecondary educational institution" means the university of
19231923 Kansas, Kansas state university of agriculture and applied science, Wichita
19241924 state university, Emporia state university, Pittsburg state university, Fort
19251925 Hays state university and Washburn university of Topeka; and
19261926 (4) "technical college" means a technical college as designated
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19701970 pursuant to K.S.A. 74-32,458, 74-32,460, 74-32,461, 74-32,462, 74-
19711971 32,464 and 74-32,465, and amendments thereto, and the institute of
19721972 technology at Washburn university.
19731973 (e) (1) Any taxpayer not subject to Kansas income, privilege or
19741974 premiums tax who contributes to a community college, technical college
19751975 or postsecondary educational institution, hereinafter designated the
19761976 transferor, may sell, assign, convey or otherwise transfer tax credits
19771977 allowed and earned pursuant to this section. The sale price of a tax credit
19781978 shall be at least 50% of the full value of the credit. Such credit shall be
19791979 deemed to be allowed and earned by any such taxpayer which is only
19801980 disqualified therefrom by reason of not being subject to such Kansas taxes.
19811981 The taxpayer acquiring earned credits, hereinafter designated the
19821982 transferee, may use the amount of the acquired credits to offset up to 100%
19831983 of the taxpayer's income, privilege or premiums tax liability for the taxable
19841984 year in which such acquisition was made. Such credits may be sold or
19851985 transferred only one time and, if sold or transferred, shall be transferred in
19861986 the tax year such credit is earned or the two successive tax years. A
19871987 transferred credit shall be claimed in the year purchased. The transferor
19881988 shall enter into a written agreement with the transferee establishing the
19891989 terms and conditions of the sale or transfer and shall perfect such transfer
19901990 by notifying the secretary of revenue in writing within 30 calendar days
19911991 following the effective date of the transfer, subject to the review and
19921992 approval or denial of such transfer by the secretary of revenue. The
19931993 transferor and transferee shall provide any information pertaining to the
19941994 sale or transfer as may be required by the secretary of revenue to
19951995 administer and carry out the provisions of this section. The amount
19961996 received by the transferor of such tax credit shall be taxable as income of
19971997 the transferor, and the excess of the value of such credit over the amount
19981998 paid by the transferee for such credit shall be taxable as income of the
19991999 transferee.
20002000 (2) The provisions of this subsection shall not apply to tax credits
20012001 earned pursuant to subsection (a)(2).
20022002 (f) The secretary of revenue shall submit an annual report to the
20032003 legislature to assist the legislature in the evaluation of the utilization of any
20042004 credits claimed pursuant to this act, including information specific as to
20052005 each community college, technical college or postsecondary educational
20062006 institution. Such report shall be due on or before the first day of the
20072007 legislative session following the tax year in which the credits were
20082008 claimed.
20092009 (g) The secretary of revenue shall adopt rules and regulations
20102010 necessary to administer the provisions of this section.
20112011 Sec. 22. K.S.A. 2022 Supp. 79-3606 is hereby amended to read as
20122012 follows: 79-3606. The following shall be exempt from the tax imposed by
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20562056 this act:
20572057 (a) All sales of motor-vehicle fuel or other articles upon which a sales
20582058 or excise tax has been paid, not subject to refund, under the laws of this
20592059 state except cigarettes and electronic cigarettes as defined by K.S.A. 79-
20602060 3301, and amendments thereto, including consumable material for such
20612061 electronic cigarettes, cereal malt beverages and malt products as defined
20622062 by K.S.A. 79-3817, and amendments thereto, including wort, liquid malt,
20632063 malt syrup and malt extract, that is not subject to taxation under the
20642064 provisions of K.S.A. 79-41a02, and amendments thereto, motor vehicles
20652065 taxed pursuant to K.S.A. 79-5117, and amendments thereto, tires taxed
20662066 pursuant to K.S.A. 65-3424d, and amendments thereto, drycleaning and
20672067 laundry services taxed pursuant to K.S.A. 65-34,150, and amendments
20682068 thereto, and gross receipts from regulated sports contests taxed pursuant to
20692069 the Kansas professional regulated sports act, and amendments thereto;
20702070 (b) all sales of tangible personal property or service, including the
20712071 renting and leasing of tangible personal property, purchased directly by the
20722072 state of Kansas, a political subdivision thereof, other than a school or
20732073 educational institution, or purchased by a public or private nonprofit
20742074 hospital, public hospital authority, nonprofit blood, tissue or organ bank or
20752075 nonprofit integrated community care organization and used exclusively for
20762076 state, political subdivision, hospital, public hospital authority, nonprofit
20772077 blood, tissue or organ bank or nonprofit integrated community care
20782078 organization purposes, except when: (1) Such state, hospital or public
20792079 hospital authority is engaged or proposes to engage in any business
20802080 specifically taxable under the provisions of this act and such items of
20812081 tangible personal property or service are used or proposed to be used in
20822082 such business; or (2) such political subdivision is engaged or proposes to
20832083 engage in the business of furnishing gas, electricity or heat to others and
20842084 such items of personal property or service are used or proposed to be used
20852085 in such business;
20862086 (c) all sales of tangible personal property or services, including the
20872087 renting and leasing of tangible personal property, purchased directly by a
20882088 public or private elementary or secondary school or public or private
20892089 nonprofit educational institution and used primarily by such school or
20902090 institution for nonsectarian programs and activities provided or sponsored
20912091 by such school or institution or in the erection, repair or enlargement of
20922092 buildings to be used for such purposes. The exemption herein provided
20932093 shall not apply to erection, construction, repair, enlargement or equipment
20942094 of buildings used primarily for human habitation, except that such
20952095 exemption shall apply to the erection, construction, repair, enlargement or
20962096 equipment of buildings used for human habitation by the cerebral palsy
20972097 research foundation of Kansas located in Wichita, Kansas, and multi
20982098 community diversified services, incorporated, located in McPherson,
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21422142 Kansas;
21432143 (d) all sales of tangible personal property or services purchased by a
21442144 contractor for the purpose of constructing, equipping, reconstructing,
21452145 maintaining, repairing, enlarging, furnishing or remodeling facilities for
21462146 any public or private nonprofit hospital or public hospital authority, public
21472147 or private elementary or secondary school, a public or private nonprofit
21482148 educational institution, state correctional institution including a privately
21492149 constructed correctional institution contracted for state use and ownership,
21502150 that would be exempt from taxation under the provisions of this act if
21512151 purchased directly by such hospital or public hospital authority, school,
21522152 educational institution or a state correctional institution; and all sales of
21532153 tangible personal property or services purchased by a contractor for the
21542154 purpose of constructing, equipping, reconstructing, maintaining, repairing,
21552155 enlarging, furnishing or remodeling facilities for any political subdivision
21562156 of the state or district described in subsection (s), the total cost of which is
21572157 paid from funds of such political subdivision or district and that would be
21582158 exempt from taxation under the provisions of this act if purchased directly
21592159 by such political subdivision or district. Nothing in this subsection or in
21602160 the provisions of K.S.A. 12-3418, and amendments thereto, shall be
21612161 deemed to exempt the purchase of any construction machinery, equipment
21622162 or tools used in the constructing, equipping, reconstructing, maintaining,
21632163 repairing, enlarging, furnishing or remodeling facilities for any political
21642164 subdivision of the state or any such district. As used in this subsection,
21652165 K.S.A. 12-3418 and 79-3640, and amendments thereto, "funds of a
21662166 political subdivision" shall mean general tax revenues, the proceeds of any
21672167 bonds and gifts or grants-in-aid. Gifts shall not mean funds used for the
21682168 purpose of constructing, equipping, reconstructing, repairing, enlarging,
21692169 furnishing or remodeling facilities that are to be leased to the donor. When
21702170 any political subdivision of the state, district described in subsection (s),
21712171 public or private nonprofit hospital or public hospital authority, public or
21722172 private elementary or secondary school, public or private nonprofit
21732173 educational institution, state correctional institution including a privately
21742174 constructed correctional institution contracted for state use and ownership
21752175 shall contract for the purpose of constructing, equipping, reconstructing,
21762176 maintaining, repairing, enlarging, furnishing or remodeling facilities, it
21772177 shall obtain from the state and furnish to the contractor an exemption
21782178 certificate for the project involved, and the contractor may purchase
21792179 materials for incorporation in such project. The contractor shall furnish the
21802180 number of such certificate to all suppliers from whom such purchases are
21812181 made, and such suppliers shall execute invoices covering the same bearing
21822182 the number of such certificate. Upon completion of the project the
21832183 contractor shall furnish to the political subdivision, district described in
21842184 subsection (s), hospital or public hospital authority, school, educational
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22282228 institution or department of corrections concerned a sworn statement, on a
22292229 form to be provided by the director of taxation, that all purchases so made
22302230 were entitled to exemption under this subsection. As an alternative to the
22312231 foregoing procedure, any such contracting entity may apply to the
22322232 secretary of revenue for agent status for the sole purpose of issuing and
22332233 furnishing project exemption certificates to contractors pursuant to rules
22342234 and regulations adopted by the secretary establishing conditions and
22352235 standards for the granting and maintaining of such status. All invoices
22362236 shall be held by the contractor for a period of five years and shall be
22372237 subject to audit by the director of taxation. If any materials purchased
22382238 under such a certificate are found not to have been incorporated in the
22392239 building or other project or not to have been returned for credit or the sales
22402240 or compensating tax otherwise imposed upon such materials that will not
22412241 be so incorporated in the building or other project reported and paid by
22422242 such contractor to the director of taxation not later than the 20
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22452245 month following the close of the month in which it shall be determined
22462246 that such materials will not be used for the purpose for which such
22472247 certificate was issued, the political subdivision, district described in
22482248 subsection (s), hospital or public hospital authority, school, educational
22492249 institution or the contractor contracting with the department of corrections
22502250 for a correctional institution concerned shall be liable for tax on all
22512251 materials purchased for the project, and upon payment thereof it may
22522252 recover the same from the contractor together with reasonable attorney
22532253 fees. Any contractor or any agent, employee or subcontractor thereof, who
22542254 shall use or otherwise dispose of any materials purchased under such a
22552255 certificate for any purpose other than that for which such a certificate is
22562256 issued without the payment of the sales or compensating tax otherwise
22572257 imposed upon such materials, shall be guilty of a misdemeanor and, upon
22582258 conviction therefor, shall be subject to the penalties provided for in K.S.A.
22592259 79-3615(h), and amendments thereto;
22602260 (e) all sales of tangible personal property or services purchased by a
22612261 contractor for the erection, repair or enlargement of buildings or other
22622262 projects for the government of the United States, its agencies or
22632263 instrumentalities, that would be exempt from taxation if purchased directly
22642264 by the government of the United States, its agencies or instrumentalities.
22652265 When the government of the United States, its agencies or
22662266 instrumentalities shall contract for the erection, repair, or enlargement of
22672267 any building or other project, it shall obtain from the state and furnish to
22682268 the contractor an exemption certificate for the project involved, and the
22692269 contractor may purchase materials for incorporation in such project. The
22702270 contractor shall furnish the number of such certificates to all suppliers
22712271 from whom such purchases are made, and such suppliers shall execute
22722272 invoices covering the same bearing the number of such certificate. Upon
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23162316 completion of the project the contractor shall furnish to the government of
23172317 the United States, its agencies or instrumentalities concerned a sworn
23182318 statement, on a form to be provided by the director of taxation, that all
23192319 purchases so made were entitled to exemption under this subsection. As an
23202320 alternative to the foregoing procedure, any such contracting entity may
23212321 apply to the secretary of revenue for agent status for the sole purpose of
23222322 issuing and furnishing project exemption certificates to contractors
23232323 pursuant to rules and regulations adopted by the secretary establishing
23242324 conditions and standards for the granting and maintaining of such status.
23252325 All invoices shall be held by the contractor for a period of five years and
23262326 shall be subject to audit by the director of taxation. Any contractor or any
23272327 agent, employee or subcontractor thereof, who shall use or otherwise
23282328 dispose of any materials purchased under such a certificate for any purpose
23292329 other than that for which such a certificate is issued without the payment
23302330 of the sales or compensating tax otherwise imposed upon such materials,
23312331 shall be guilty of a misdemeanor and, upon conviction therefor, shall be
23322332 subject to the penalties provided for in K.S.A. 79-3615(h), and
23332333 amendments thereto;
23342334 (f) tangible personal property purchased by a railroad or public utility
23352335 for consumption or movement directly and immediately in interstate
23362336 commerce;
23372337 (g) sales of aircraft including remanufactured and modified aircraft
23382338 sold to persons using directly or through an authorized agent such aircraft
23392339 as certified or licensed carriers of persons or property in interstate or
23402340 foreign commerce under authority of the laws of the United States or any
23412341 foreign government or sold to any foreign government or agency or
23422342 instrumentality of such foreign government and all sales of aircraft for use
23432343 outside of the United States and sales of aircraft repair, modification and
23442344 replacement parts and sales of services employed in the remanufacture,
23452345 modification and repair of aircraft;
23462346 (h) all rentals of nonsectarian textbooks by public or private
23472347 elementary or secondary schools;
23482348 (i) the lease or rental of all films, records, tapes, or any type of sound
23492349 or picture transcriptions used by motion picture exhibitors;
23502350 (j) meals served without charge or food used in the preparation of
23512351 such meals to employees of any restaurant, eating house, dining car, hotel,
23522352 drugstore or other place where meals or drinks are regularly sold to the
23532353 public if such employees' duties are related to the furnishing or sale of
23542354 such meals or drinks;
23552355 (k) any motor vehicle, semitrailer or pole trailer, as such terms are
23562356 defined by K.S.A. 8-126, and amendments thereto, or aircraft sold and
23572357 delivered in this state to a bona fide resident of another state, which motor
23582358 vehicle, semitrailer, pole trailer or aircraft is not to be registered or based
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24022402 in this state and which vehicle, semitrailer, pole trailer or aircraft will not
24032403 remain in this state more than 10 days;
24042404 (l) all isolated or occasional sales of tangible personal property,
24052405 services, substances or things, except isolated or occasional sale of motor
24062406 vehicles specifically taxed under the provisions of K.S.A. 79-3603(o), and
24072407 amendments thereto;
24082408 (m) all sales of tangible personal property that become an ingredient
24092409 or component part of tangible personal property or services produced,
24102410 manufactured or compounded for ultimate sale at retail within or without
24112411 the state of Kansas; and any such producer, manufacturer or compounder
24122412 may obtain from the director of taxation and furnish to the supplier an
24132413 exemption certificate number for tangible personal property for use as an
24142414 ingredient or component part of the property or services produced,
24152415 manufactured or compounded;
24162416 (n) all sales of tangible personal property that is consumed in the
24172417 production, manufacture, processing, mining, drilling, refining or
24182418 compounding of tangible personal property, the treating of by-products or
24192419 wastes derived from any such production process, the providing of
24202420 services or the irrigation of crops for ultimate sale at retail within or
24212421 without the state of Kansas; and any purchaser of such property may
24222422 obtain from the director of taxation and furnish to the supplier an
24232423 exemption certificate number for tangible personal property for
24242424 consumption in such production, manufacture, processing, mining,
24252425 drilling, refining, compounding, treating, irrigation and in providing such
24262426 services;
24272427 (o) all sales of animals, fowl and aquatic plants and animals, the
24282428 primary purpose of which is use in agriculture or aquaculture, as defined in
24292429 K.S.A. 47-1901, and amendments thereto, the production of food for
24302430 human consumption, the production of animal, dairy, poultry or aquatic
24312431 plant and animal products, fiber or fur, or the production of offspring for
24322432 use for any such purpose or purposes;
24332433 (p) all sales of drugs dispensed pursuant to a prescription order by a
24342434 licensed practitioner or a mid-level practitioner as defined by K.S.A. 65-
24352435 1626, and amendments thereto. As used in this subsection, "drug" means a
24362436 compound, substance or preparation and any component of a compound,
24372437 substance or preparation, other than food and food ingredients, dietary
24382438 supplements or alcoholic beverages, recognized in the official United
24392439 States pharmacopeia, official homeopathic pharmacopoeia of the United
24402440 States or official national formulary, and supplement to any of them,
24412441 intended for use in the diagnosis, cure, mitigation, treatment or prevention
24422442 of disease or intended to affect the structure or any function of the body,
24432443 except that for taxable years commencing after December 31, 2013, this
24442444 subsection shall not apply to any sales of drugs used in the performance or
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24882488 induction of an abortion, as defined in K.S.A. 65-6701 section 4, and
24892489 amendments thereto;
24902490 (q) all sales of insulin dispensed by a person licensed by the state
24912491 board of pharmacy to a person for treatment of diabetes at the direction of
24922492 a person licensed to practice medicine by the state board of healing arts;
24932493 (r) all sales of oxygen delivery equipment, kidney dialysis equipment,
24942494 enteral feeding systems, prosthetic devices and mobility enhancing
24952495 equipment prescribed in writing by a person licensed to practice the
24962496 healing arts, dentistry or optometry, and in addition to such sales, all sales
24972497 of hearing aids, as defined by K.S.A. 74-5807(c), and amendments thereto,
24982498 and repair and replacement parts therefor, including batteries, by a person
24992499 licensed in the practice of dispensing and fitting hearing aids pursuant to
25002500 the provisions of K.S.A. 74-5808, and amendments thereto. For the
25012501 purposes of this subsection: (1) "Mobility enhancing equipment" means
25022502 equipment including repair and replacement parts to same, but does not
25032503 include durable medical equipment, which is primarily and customarily
25042504 used to provide or increase the ability to move from one place to another
25052505 and which is appropriate for use either in a home or a motor vehicle; is not
25062506 generally used by persons with normal mobility; and does not include any
25072507 motor vehicle or equipment on a motor vehicle normally provided by a
25082508 motor vehicle manufacturer; and (2) "prosthetic device" means a
25092509 replacement, corrective or supportive device including repair and
25102510 replacement parts for same worn on or in the body to artificially replace a
25112511 missing portion of the body, prevent or correct physical deformity or
25122512 malfunction or support a weak or deformed portion of the body;
25132513 (s) except as provided in K.S.A. 82a-2101, and amendments thereto,
25142514 all sales of tangible personal property or services purchased directly or
25152515 indirectly by a groundwater management district organized or operating
25162516 under the authority of K.S.A. 82a-1020 et seq., and amendments thereto,
25172517 by a rural water district organized or operating under the authority of
25182518 K.S.A. 82a-612, and amendments thereto, or by a water supply district
25192519 organized or operating under the authority of K.S.A. 19-3501 et seq., 19-
25202520 3522 et seq. or 19-3545, and amendments thereto, which property or
25212521 services are used in the construction activities, operation or maintenance of
25222522 the district;
25232523 (t) all sales of farm machinery and equipment or aquaculture
25242524 machinery and equipment, repair and replacement parts therefor and
25252525 services performed in the repair and maintenance of such machinery and
25262526 equipment. For the purposes of this subsection the term "farm machinery
25272527 and equipment or aquaculture machinery and equipment" shall include a
25282528 work-site utility vehicle, as defined in K.S.A. 8-126, and amendments
25292529 thereto, and is equipped with a bed or cargo box for hauling materials, and
25302530 shall also include machinery and equipment used in the operation of
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25742574 Christmas tree farming but shall not include any passenger vehicle, truck,
25752575 truck tractor, trailer, semitrailer or pole trailer, other than a farm trailer, as
25762576 such terms are defined by K.S.A. 8-126, and amendments thereto. "Farm
25772577 machinery and equipment" includes precision farming equipment that is
25782578 portable or is installed or purchased to be installed on farm machinery and
25792579 equipment. "Precision farming equipment" includes the following items
25802580 used only in computer-assisted farming, ranching or aquaculture
25812581 production operations: Soil testing sensors, yield monitors, computers,
25822582 monitors, software, global positioning and mapping systems, guiding
25832583 systems, modems, data communications equipment and any necessary
25842584 mounting hardware, wiring and antennas. Each purchaser of farm
25852585 machinery and equipment or aquaculture machinery and equipment
25862586 exempted herein must certify in writing on the copy of the invoice or sales
25872587 ticket to be retained by the seller that the farm machinery and equipment
25882588 or aquaculture machinery and equipment purchased will be used only in
25892589 farming, ranching or aquaculture production. Farming or ranching shall
25902590 include the operation of a feedlot and farm and ranch work for hire and the
25912591 operation of a nursery;
25922592 (u) all leases or rentals of tangible personal property used as a
25932593 dwelling if such tangible personal property is leased or rented for a period
25942594 of more than 28 consecutive days;
25952595 (v) all sales of tangible personal property to any contractor for use in
25962596 preparing meals for delivery to homebound elderly persons over 60 years
25972597 of age and to homebound disabled persons or to be served at a group-
25982598 sitting at a location outside of the home to otherwise homebound elderly
25992599 persons over 60 years of age and to otherwise homebound disabled
26002600 persons, as all or part of any food service project funded in whole or in
26012601 part by government or as part of a private nonprofit food service project
26022602 available to all such elderly or disabled persons residing within an area of
26032603 service designated by the private nonprofit organization, and all sales of
26042604 tangible personal property for use in preparing meals for consumption by
26052605 indigent or homeless individuals whether or not such meals are consumed
26062606 at a place designated for such purpose, and all sales of food products by or
26072607 on behalf of any such contractor or organization for any such purpose;
26082608 (w) all sales of natural gas, electricity, heat and water delivered
26092609 through mains, lines or pipes: (1) To residential premises for
26102610 noncommercial use by the occupant of such premises; (2) for agricultural
26112611 use and also, for such use, all sales of propane gas; (3) for use in the
26122612 severing of oil; and (4) to any property which is exempt from property
26132613 taxation pursuant to K.S.A. 79-201b, Second through Sixth. As used in this
26142614 paragraph, "severing" means the same as defined in K.S.A. 79-4216(k),
26152615 and amendments thereto. For all sales of natural gas, electricity and heat
26162616 delivered through mains, lines or pipes pursuant to the provisions of
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26602660 subsection (w)(1) and (w)(2), the provisions of this subsection shall expire
26612661 on December 31, 2005;
26622662 (x) all sales of propane gas, LP-gas, coal, wood and other fuel sources
26632663 for the production of heat or lighting for noncommercial use of an
26642664 occupant of residential premises occurring prior to January 1, 2006;
26652665 (y) all sales of materials and services used in the repairing, servicing,
26662666 altering, maintaining, manufacturing, remanufacturing, or modification of
26672667 railroad rolling stock for use in interstate or foreign commerce under
26682668 authority of the laws of the United States;
26692669 (z) all sales of tangible personal property and services purchased
26702670 directly by a port authority or by a contractor therefor as provided by the
26712671 provisions of K.S.A. 12-3418, and amendments thereto;
26722672 (aa) all sales of materials and services applied to equipment that is
26732673 transported into the state from without the state for repair, service,
26742674 alteration, maintenance, remanufacture or modification and that is
26752675 subsequently transported outside the state for use in the transmission of
26762676 liquids or natural gas by means of pipeline in interstate or foreign
26772677 commerce under authority of the laws of the United States;
26782678 (bb) all sales of used mobile homes or manufactured homes. As used
26792679 in this subsection: (1) "Mobile homes" and "manufactured homes" mean
26802680 the same as defined in K.S.A. 58-4202, and amendments thereto; and (2)
26812681 "sales of used mobile homes or manufactured homes" means sales other
26822682 than the original retail sale thereof;
26832683 (cc) all sales of tangible personal property or services purchased prior
26842684 to January 1, 2012, except as otherwise provided, for the purpose of and in
26852685 conjunction with constructing, reconstructing, enlarging or remodeling a
26862686 business or retail business that meets the requirements established in
26872687 K.S.A. 74-50,115, and amendments thereto, and the sale and installation of
26882688 machinery and equipment purchased for installation at any such business
26892689 or retail business, and all sales of tangible personal property or services
26902690 purchased on or after January 1, 2012, for the purpose of and in
26912691 conjunction with constructing, reconstructing, enlarging or remodeling a
26922692 business that meets the requirements established in K.S.A. 74-50,115(e),
26932693 and amendments thereto, and the sale and installation of machinery and
26942694 equipment purchased for installation at any such business. When a person
26952695 shall contract for the construction, reconstruction, enlargement or
26962696 remodeling of any such business or retail business, such person shall
26972697 obtain from the state and furnish to the contractor an exemption certificate
26982698 for the project involved, and the contractor may purchase materials,
26992699 machinery and equipment for incorporation in such project. The contractor
27002700 shall furnish the number of such certificates to all suppliers from whom
27012701 such purchases are made, and such suppliers shall execute invoices
27022702 covering the same bearing the number of such certificate. Upon
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27462746 completion of the project the contractor shall furnish to the owner of the
27472747 business or retail business a sworn statement, on a form to be provided by
27482748 the director of taxation, that all purchases so made were entitled to
27492749 exemption under this subsection. All invoices shall be held by the
27502750 contractor for a period of five years and shall be subject to audit by the
27512751 director of taxation. Any contractor or any agent, employee or
27522752 subcontractor thereof, who shall use or otherwise dispose of any materials,
27532753 machinery or equipment purchased under such a certificate for any
27542754 purpose other than that for which such a certificate is issued without the
27552755 payment of the sales or compensating tax otherwise imposed thereon, shall
27562756 be guilty of a misdemeanor and, upon conviction therefor, shall be subject
27572757 to the penalties provided for in K.S.A. 79-3615(h), and amendments
27582758 thereto. As used in this subsection, "business" and "retail business" mean
27592759 the same as defined in K.S.A. 74-50,114, and amendments thereto. Project
27602760 exemption certificates that have been previously issued under this
27612761 subsection by the department of revenue pursuant to K.S.A. 74-50,115,
27622762 and amendments thereto, but not including K.S.A. 74-50,115(e), and
27632763 amendments thereto, prior to January 1, 2012, and have not expired will be
27642764 effective for the term of the project or two years from the effective date of
27652765 the certificate, whichever occurs earlier. Project exemption certificates that
27662766 are submitted to the department of revenue prior to January 1, 2012, and
27672767 are found to qualify will be issued a project exemption certificate that will
27682768 be effective for a two-year period or for the term of the project, whichever
27692769 occurs earlier;
27702770 (dd) all sales of tangible personal property purchased with food
27712771 stamps issued by the United States department of agriculture;
27722772 (ee) all sales of lottery tickets and shares made as part of a lottery
27732773 operated by the state of Kansas;
27742774 (ff) on and after July 1, 1988, all sales of new mobile homes or
27752775 manufactured homes to the extent of 40% of the gross receipts, determined
27762776 without regard to any trade-in allowance, received from such sale. As used
27772777 in this subsection, "mobile homes" and "manufactured homes" mean the
27782778 same as defined in K.S.A. 58-4202, and amendments thereto;
27792779 (gg) all sales of tangible personal property purchased in accordance
27802780 with vouchers issued pursuant to the federal special supplemental food
27812781 program for women, infants and children;
27822782 (hh) all sales of medical supplies and equipment, including durable
27832783 medical equipment, purchased directly by a nonprofit skilled nursing home
27842784 or nonprofit intermediate nursing care home, as defined by K.S.A. 39-923,
27852785 and amendments thereto, for the purpose of providing medical services to
27862786 residents thereof. This exemption shall not apply to tangible personal
27872787 property customarily used for human habitation purposes. As used in this
27882788 subsection, "durable medical equipment" means equipment including
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28322832 repair and replacement parts for such equipment, that can withstand
28332833 repeated use, is primarily and customarily used to serve a medical purpose,
28342834 generally is not useful to a person in the absence of illness or injury and is
28352835 not worn in or on the body, but does not include mobility enhancing
28362836 equipment as defined in subsection (r), oxygen delivery equipment, kidney
28372837 dialysis equipment or enteral feeding systems;
28382838 (ii) all sales of tangible personal property purchased directly by a
28392839 nonprofit organization for nonsectarian comprehensive multidiscipline
28402840 youth development programs and activities provided or sponsored by such
28412841 organization, and all sales of tangible personal property by or on behalf of
28422842 any such organization. This exemption shall not apply to tangible personal
28432843 property customarily used for human habitation purposes;
28442844 (jj) all sales of tangible personal property or services, including the
28452845 renting and leasing of tangible personal property, purchased directly on
28462846 behalf of a community-based facility for people with intellectual disability
28472847 or mental health center organized pursuant to K.S.A. 19-4001 et seq., and
28482848 amendments thereto, and licensed in accordance with the provisions of
28492849 K.S.A. 39-2001 et seq., and amendments thereto, and all sales of tangible
28502850 personal property or services purchased by contractors during the time
28512851 period from July, 2003, through June, 2006, for the purpose of
28522852 constructing, equipping, maintaining or furnishing a new facility for a
28532853 community-based facility for people with intellectual disability or mental
28542854 health center located in Riverton, Cherokee County, Kansas, that would
28552855 have been eligible for sales tax exemption pursuant to this subsection if
28562856 purchased directly by such facility or center. This exemption shall not
28572857 apply to tangible personal property customarily used for human habitation
28582858 purposes;
28592859 (kk) (1) (A) all sales of machinery and equipment that are used in this
28602860 state as an integral or essential part of an integrated production operation
28612861 by a manufacturing or processing plant or facility;
28622862 (B) all sales of installation, repair and maintenance services
28632863 performed on such machinery and equipment; and
28642864 (C) all sales of repair and replacement parts and accessories
28652865 purchased for such machinery and equipment.
28662866 (2) For purposes of this subsection:
28672867 (A) "Integrated production operation" means an integrated series of
28682868 operations engaged in at a manufacturing or processing plant or facility to
28692869 process, transform or convert tangible personal property by physical,
28702870 chemical or other means into a different form, composition or character
28712871 from that in which it originally existed. Integrated production operations
28722872 shall include: (i) Production line operations, including packaging
28732873 operations; (ii) preproduction operations to handle, store and treat raw
28742874 materials; (iii) post production handling, storage, warehousing and
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29182918 distribution operations; and (iv) waste, pollution and environmental
29192919 control operations, if any;
29202920 (B) "production line" means the assemblage of machinery and
29212921 equipment at a manufacturing or processing plant or facility where the
29222922 actual transformation or processing of tangible personal property occurs;
29232923 (C) "manufacturing or processing plant or facility" means a single,
29242924 fixed location owned or controlled by a manufacturing or processing
29252925 business that consists of one or more structures or buildings in a
29262926 contiguous area where integrated production operations are conducted to
29272927 manufacture or process tangible personal property to be ultimately sold at
29282928 retail. Such term shall not include any facility primarily operated for the
29292929 purpose of conveying or assisting in the conveyance of natural gas,
29302930 electricity, oil or water. A business may operate one or more manufacturing
29312931 or processing plants or facilities at different locations to manufacture or
29322932 process a single product of tangible personal property to be ultimately sold
29332933 at retail;
29342934 (D) "manufacturing or processing business" means a business that
29352935 utilizes an integrated production operation to manufacture, process,
29362936 fabricate, finish or assemble items for wholesale and retail distribution as
29372937 part of what is commonly regarded by the general public as an industrial
29382938 manufacturing or processing operation or an agricultural commodity
29392939 processing operation. (i) Industrial manufacturing or processing operations
29402940 include, by way of illustration but not of limitation, the fabrication of
29412941 automobiles, airplanes, machinery or transportation equipment, the
29422942 fabrication of metal, plastic, wood or paper products, electricity power
29432943 generation, water treatment, petroleum refining, chemical production,
29442944 wholesale bottling, newspaper printing, ready mixed concrete production,
29452945 and the remanufacturing of used parts for wholesale or retail sale. Such
29462946 processing operations shall include operations at an oil well, gas well,
29472947 mine or other excavation site where the oil, gas, minerals, coal, clay, stone,
29482948 sand or gravel that has been extracted from the earth is cleaned, separated,
29492949 crushed, ground, milled, screened, washed or otherwise treated or prepared
29502950 before its transmission to a refinery or before any other wholesale or retail
29512951 distribution. (ii) Agricultural commodity processing operations include, by
29522952 way of illustration but not of limitation, meat packing, poultry slaughtering
29532953 and dressing, processing and packaging farm and dairy products in sealed
29542954 containers for wholesale and retail distribution, feed grinding, grain
29552955 milling, frozen food processing, and grain handling, cleaning, blending,
29562956 fumigation, drying and aeration operations engaged in by grain elevators
29572957 or other grain storage facilities. (iii) Manufacturing or processing
29582958 businesses do not include, by way of illustration but not of limitation,
29592959 nonindustrial businesses whose operations are primarily retail and that
29602960 produce or process tangible personal property as an incidental part of
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30043004 conducting the retail business, such as retailers who bake, cook or prepare
30053005 food products in the regular course of their retail trade, grocery stores,
30063006 meat lockers and meat markets that butcher or dress livestock or poultry in
30073007 the regular course of their retail trade, contractors who alter, service, repair
30083008 or improve real property, and retail businesses that clean, service or
30093009 refurbish and repair tangible personal property for its owner;
30103010 (E) "repair and replacement parts and accessories" means all parts
30113011 and accessories for exempt machinery and equipment, including, but not
30123012 limited to, dies, jigs, molds, patterns and safety devices that are attached to
30133013 exempt machinery or that are otherwise used in production, and parts and
30143014 accessories that require periodic replacement such as belts, drill bits,
30153015 grinding wheels, grinding balls, cutting bars, saws, refractory brick and
30163016 other refractory items for exempt kiln equipment used in production
30173017 operations;
30183018 (F) "primary" or "primarily" mean more than 50% of the time.
30193019 (3) For purposes of this subsection, machinery and equipment shall
30203020 be deemed to be used as an integral or essential part of an integrated
30213021 production operation when used to:
30223022 (A) Receive, transport, convey, handle, treat or store raw materials in
30233023 preparation of its placement on the production line;
30243024 (B) transport, convey, handle or store the property undergoing
30253025 manufacturing or processing at any point from the beginning of the
30263026 production line through any warehousing or distribution operation of the
30273027 final product that occurs at the plant or facility;
30283028 (C) act upon, effect, promote or otherwise facilitate a physical change
30293029 to the property undergoing manufacturing or processing;
30303030 (D) guide, control or direct the movement of property undergoing
30313031 manufacturing or processing;
30323032 (E) test or measure raw materials, the property undergoing
30333033 manufacturing or processing or the finished product, as a necessary part of
30343034 the manufacturer's integrated production operations;
30353035 (F) plan, manage, control or record the receipt and flow of inventories
30363036 of raw materials, consumables and component parts, the flow of the
30373037 property undergoing manufacturing or processing and the management of
30383038 inventories of the finished product;
30393039 (G) produce energy for, lubricate, control the operating of or
30403040 otherwise enable the functioning of other production machinery and
30413041 equipment and the continuation of production operations;
30423042 (H) package the property being manufactured or processed in a
30433043 container or wrapping in which such property is normally sold or
30443044 transported;
30453045 (I) transmit or transport electricity, coke, gas, water, steam or similar
30463046 substances used in production operations from the point of generation, if
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30903090 produced by the manufacturer or processor at the plant site, to that
30913091 manufacturer's production operation; or, if purchased or delivered from
30923092 off-site, from the point where the substance enters the site of the plant or
30933093 facility to that manufacturer's production operations;
30943094 (J) cool, heat, filter, refine or otherwise treat water, steam, acid, oil,
30953095 solvents or other substances that are used in production operations;
30963096 (K) provide and control an environment required to maintain certain
30973097 levels of air quality, humidity or temperature in special and limited areas
30983098 of the plant or facility, where such regulation of temperature or humidity is
30993099 part of and essential to the production process;
31003100 (L) treat, transport or store waste or other byproducts of production
31013101 operations at the plant or facility; or
31023102 (M) control pollution at the plant or facility where the pollution is
31033103 produced by the manufacturing or processing operation.
31043104 (4) The following machinery, equipment and materials shall be
31053105 deemed to be exempt even though it may not otherwise qualify as
31063106 machinery and equipment used as an integral or essential part of an
31073107 integrated production operation: (A) Computers and related peripheral
31083108 equipment that are utilized by a manufacturing or processing business for
31093109 engineering of the finished product or for research and development or
31103110 product design; (B) machinery and equipment that is utilized by a
31113111 manufacturing or processing business to manufacture or rebuild tangible
31123112 personal property that is used in manufacturing or processing operations,
31133113 including tools, dies, molds, forms and other parts of qualifying machinery
31143114 and equipment; (C) portable plants for aggregate concrete, bulk cement
31153115 and asphalt including cement mixing drums to be attached to a motor
31163116 vehicle; (D) industrial fixtures, devices, support facilities and special
31173117 foundations necessary for manufacturing and production operations, and
31183118 materials and other tangible personal property sold for the purpose of
31193119 fabricating such fixtures, devices, facilities and foundations. An exemption
31203120 certificate for such purchases shall be signed by the manufacturer or
31213121 processor. If the fabricator purchases such material, the fabricator shall
31223122 also sign the exemption certificate; (E) a manufacturing or processing
31233123 business' laboratory equipment that is not located at the plant or facility,
31243124 but that would otherwise qualify for exemption under subsection (3)(E);
31253125 (F) all machinery and equipment used in surface mining activities as
31263126 described in K.S.A. 49-601 et seq., and amendments thereto, beginning
31273127 from the time a reclamation plan is filed to the acceptance of the
31283128 completed final site reclamation.
31293129 (5) "Machinery and equipment used as an integral or essential part of
31303130 an integrated production operation" shall not include:
31313131 (A) Machinery and equipment used for nonproduction purposes,
31323132 including, but not limited to, machinery and equipment used for plant
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31773177 keeping, advertising, marketing, sales or other related activities, plant
31783178 cleaning, plant communications and employee work scheduling;
31793179 (B) machinery, equipment and tools used primarily in maintaining
31803180 and repairing any type of machinery and equipment or the building and
31813181 plant;
31823182 (C) transportation, transmission and distribution equipment not
31833183 primarily used in a production, warehousing or material handling
31843184 operation at the plant or facility, including the means of conveyance of
31853185 natural gas, electricity, oil or water, and equipment related thereto, located
31863186 outside the plant or facility;
31873187 (D) office machines and equipment including computers and related
31883188 peripheral equipment not used directly and primarily to control or measure
31893189 the manufacturing process;
31903190 (E) furniture and other furnishings;
31913191 (F) buildings, other than exempt machinery and equipment that is
31923192 permanently affixed to or becomes a physical part of the building, and any
31933193 other part of real estate that is not otherwise exempt;
31943194 (G) building fixtures that are not integral to the manufacturing
31953195 operation, such as utility systems for heating, ventilation, air conditioning,
31963196 communications, plumbing or electrical;
31973197 (H) machinery and equipment used for general plant heating, cooling
31983198 and lighting;
31993199 (I) motor vehicles that are registered for operation on public
32003200 highways; or
32013201 (J) employee apparel, except safety and protective apparel that is
32023202 purchased by an employer and furnished gratuitously to employees who
32033203 are involved in production or research activities.
32043204 (6) Paragraphs (3) and (5) shall not be construed as exclusive listings
32053205 of the machinery and equipment that qualify or do not qualify as an
32063206 integral or essential part of an integrated production operation. When
32073207 machinery or equipment is used as an integral or essential part of
32083208 production operations part of the time and for nonproduction purposes at
32093209 other times, the primary use of the machinery or equipment shall
32103210 determine whether or not such machinery or equipment qualifies for
32113211 exemption.
32123212 (7) The secretary of revenue shall adopt rules and regulations
32133213 necessary to administer the provisions of this subsection;
32143214 (ll) all sales of educational materials purchased for distribution to the
32153215 public at no charge by a nonprofit corporation organized for the purpose of
32163216 encouraging, fostering and conducting programs for the improvement of
32173217 public health, except that for taxable years commencing after December
32183218 31, 2013, this subsection shall not apply to any sales of such materials
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32623262 purchased by a nonprofit corporation which performs any abortion, as
32633263 defined in K.S.A. 65-6701, and amendments thereto;
32643264 (mm) all sales of seeds and tree seedlings; fertilizers, insecticides,
32653265 herbicides, germicides, pesticides and fungicides; and services, purchased
32663266 and used for the purpose of producing plants in order to prevent soil
32673267 erosion on land devoted to agricultural use;
32683268 (nn) except as otherwise provided in this act, all sales of services
32693269 rendered by an advertising agency or licensed broadcast station or any
32703270 member, agent or employee thereof;
32713271 (oo) all sales of tangible personal property purchased by a community
32723272 action group or agency for the exclusive purpose of repairing or
32733273 weatherizing housing occupied by low-income individuals;
32743274 (pp) all sales of drill bits and explosives actually utilized in the
32753275 exploration and production of oil or gas;
32763276 (qq) all sales of tangible personal property and services purchased by
32773277 a nonprofit museum or historical society or any combination thereof,
32783278 including a nonprofit organization that is organized for the purpose of
32793279 stimulating public interest in the exploration of space by providing
32803280 educational information, exhibits and experiences, that is exempt from
32813281 federal income taxation pursuant to section 501(c)(3) of the federal
32823282 internal revenue code of 1986;
32833283 (rr) all sales of tangible personal property that will admit the
32843284 purchaser thereof to any annual event sponsored by a nonprofit
32853285 organization that is exempt from federal income taxation pursuant to
32863286 section 501(c)(3) of the federal internal revenue code of 1986, except that
32873287 for taxable years commencing after December 31, 2013, this subsection
32883288 shall not apply to any sales of such tangible personal property purchased
32893289 by a nonprofit organization which performs any abortion, as defined in
32903290 K.S.A. 65-6701, and amendments thereto;
32913291 (ss) all sales of tangible personal property and services purchased by
32923292 a public broadcasting station licensed by the federal communications
32933293 commission as a noncommercial educational television or radio station;
32943294 (tt) all sales of tangible personal property and services purchased by
32953295 or on behalf of a not-for-profit corporation that is exempt from federal
32963296 income taxation pursuant to section 501(c)(3) of the federal internal
32973297 revenue code of 1986, for the sole purpose of constructing a Kansas
32983298 Korean War memorial;
32993299 (uu) all sales of tangible personal property and services purchased by
33003300 or on behalf of any rural volunteer fire-fighting organization for use
33013301 exclusively in the performance of its duties and functions;
33023302 (vv) all sales of tangible personal property purchased by any of the
33033303 following organizations that are exempt from federal income taxation
33043304 pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
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33483348 for the following purposes, and all sales of any such property by or on
33493349 behalf of any such organization for any such purpose:
33503350 (1) The American heart association, Kansas affiliate, inc. for the
33513351 purposes of providing education, training, certification in emergency
33523352 cardiac care, research and other related services to reduce disability and
33533353 death from cardiovascular diseases and stroke;
33543354 (2) the Kansas alliance for the mentally ill, inc. for the purpose of
33553355 advocacy for persons with mental illness and to education, research and
33563356 support for their families;
33573357 (3) the Kansas mental illness awareness council for the purposes of
33583358 advocacy for persons who are mentally ill and for education, research and
33593359 support for them and their families;
33603360 (4) the American diabetes association Kansas affiliate, inc. for the
33613361 purpose of eliminating diabetes through medical research, public education
33623362 focusing on disease prevention and education, patient education including
33633363 information on coping with diabetes, and professional education and
33643364 training;
33653365 (5) the American lung association of Kansas, inc. for the purpose of
33663366 eliminating all lung diseases through medical research, public education
33673367 including information on coping with lung diseases, professional education
33683368 and training related to lung disease and other related services to reduce the
33693369 incidence of disability and death due to lung disease;
33703370 (6) the Kansas chapters of the Alzheimer's disease and related
33713371 disorders association, inc. for the purpose of providing assistance and
33723372 support to persons in Kansas with Alzheimer's disease, and their families
33733373 and caregivers;
33743374 (7) the Kansas chapters of the Parkinson's disease association for the
33753375 purpose of eliminating Parkinson's disease through medical research and
33763376 public and professional education related to such disease;
33773377 (8) the national kidney foundation of Kansas and western Missouri
33783378 for the purpose of eliminating kidney disease through medical research
33793379 and public and private education related to such disease;
33803380 (9) the heartstrings community foundation for the purpose of
33813381 providing training, employment and activities for adults with
33823382 developmental disabilities;
33833383 (10) the cystic fibrosis foundation, heart of America chapter, for the
33843384 purposes of assuring the development of the means to cure and control
33853385 cystic fibrosis and improving the quality of life for those with the disease;
33863386 (11) the spina bifida association of Kansas for the purpose of
33873387 providing financial, educational and practical aid to families and
33883388 individuals with spina bifida. Such aid includes, but is not limited to,
33893389 funding for medical devices, counseling and medical educational
33903390 opportunities;
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34343434 (12) the CHWC, Inc., for the purpose of rebuilding urban core
34353435 neighborhoods through the construction of new homes, acquiring and
34363436 renovating existing homes and other related activities, and promoting
34373437 economic development in such neighborhoods;
34383438 (13) the cross-lines cooperative council for the purpose of providing
34393439 social services to low income individuals and families;
34403440 (14) the dreams work, inc., for the purpose of providing young adult
34413441 day services to individuals with developmental disabilities and assisting
34423442 families in avoiding institutional or nursing home care for a
34433443 developmentally disabled member of their family;
34443444 (15) the KSDS, Inc., for the purpose of promoting the independence
34453445 and inclusion of people with disabilities as fully participating and
34463446 contributing members of their communities and society through the
34473447 training and providing of guide and service dogs to people with
34483448 disabilities, and providing disability education and awareness to the
34493449 general public;
34503450 (16) the lyme association of greater Kansas City, Inc., for the purpose
34513451 of providing support to persons with lyme disease and public education
34523452 relating to the prevention, treatment and cure of lyme disease;
34533453 (17) the dream factory, inc., for the purpose of granting the dreams of
34543454 children with critical and chronic illnesses;
34553455 (18) the Ottawa Suzuki strings, inc., for the purpose of providing
34563456 students and families with education and resources necessary to enable
34573457 each child to develop fine character and musical ability to the fullest
34583458 potential;
34593459 (19) the international association of lions clubs for the purpose of
34603460 creating and fostering a spirit of understanding among all people for
34613461 humanitarian needs by providing voluntary services through community
34623462 involvement and international cooperation;
34633463 (20) the Johnson county young matrons, inc., for the purpose of
34643464 promoting a positive future for members of the community through
34653465 volunteerism, financial support and education through the efforts of an all
34663466 volunteer organization;
34673467 (21) the American cancer society, inc., for the purpose of eliminating
34683468 cancer as a major health problem by preventing cancer, saving lives and
34693469 diminishing suffering from cancer, through research, education, advocacy
34703470 and service;
34713471 (22) the community services of Shawnee, inc., for the purpose of
34723472 providing food and clothing to those in need;
34733473 (23) the angel babies association, for the purpose of providing
34743474 assistance, support and items of necessity to teenage mothers and their
34753475 babies; and
34763476 (24) the Kansas fairgrounds foundation for the purpose of the
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35203520 preservation, renovation and beautification of the Kansas state fairgrounds;
35213521 (ww) all sales of tangible personal property purchased by the habitat
35223522 for humanity for the exclusive use of being incorporated within a housing
35233523 project constructed by such organization;
35243524 (xx) all sales of tangible personal property and services purchased by
35253525 a nonprofit zoo that is exempt from federal income taxation pursuant to
35263526 section 501(c)(3) of the federal internal revenue code of 1986, or on behalf
35273527 of such zoo by an entity itself exempt from federal income taxation
35283528 pursuant to section 501(c)(3) of the federal internal revenue code of 1986
35293529 contracted with to operate such zoo and all sales of tangible personal
35303530 property or services purchased by a contractor for the purpose of
35313531 constructing, equipping, reconstructing, maintaining, repairing, enlarging,
35323532 furnishing or remodeling facilities for any nonprofit zoo that would be
35333533 exempt from taxation under the provisions of this section if purchased
35343534 directly by such nonprofit zoo or the entity operating such zoo. Nothing in
35353535 this subsection shall be deemed to exempt the purchase of any construction
35363536 machinery, equipment or tools used in the constructing, equipping,
35373537 reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
35383538 facilities for any nonprofit zoo. When any nonprofit zoo shall contract for
35393539 the purpose of constructing, equipping, reconstructing, maintaining,
35403540 repairing, enlarging, furnishing or remodeling facilities, it shall obtain
35413541 from the state and furnish to the contractor an exemption certificate for the
35423542 project involved, and the contractor may purchase materials for
35433543 incorporation in such project. The contractor shall furnish the number of
35443544 such certificate to all suppliers from whom such purchases are made, and
35453545 such suppliers shall execute invoices covering the same bearing the
35463546 number of such certificate. Upon completion of the project the contractor
35473547 shall furnish to the nonprofit zoo concerned a sworn statement, on a form
35483548 to be provided by the director of taxation, that all purchases so made were
35493549 entitled to exemption under this subsection. All invoices shall be held by
35503550 the contractor for a period of five years and shall be subject to audit by the
35513551 director of taxation. If any materials purchased under such a certificate are
35523552 found not to have been incorporated in the building or other project or not
35533553 to have been returned for credit or the sales or compensating tax otherwise
35543554 imposed upon such materials that will not be so incorporated in the
35553555 building or other project reported and paid by such contractor to the
35563556 director of taxation not later than the 20
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35593559 close of the month in which it shall be determined that such materials will
35603560 not be used for the purpose for which such certificate was issued, the
35613561 nonprofit zoo concerned shall be liable for tax on all materials purchased
35623562 for the project, and upon payment thereof it may recover the same from
35633563 the contractor together with reasonable attorney fees. Any contractor or
35643564 any agent, employee or subcontractor thereof, who shall use or otherwise
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36083608 dispose of any materials purchased under such a certificate for any purpose
36093609 other than that for which such a certificate is issued without the payment
36103610 of the sales or compensating tax otherwise imposed upon such materials,
36113611 shall be guilty of a misdemeanor and, upon conviction therefor, shall be
36123612 subject to the penalties provided for in K.S.A. 79-3615(h), and
36133613 amendments thereto;
36143614 (yy) all sales of tangible personal property and services purchased by
36153615 a parent-teacher association or organization, and all sales of tangible
36163616 personal property by or on behalf of such association or organization;
36173617 (zz) all sales of machinery and equipment purchased by over-the-air,
36183618 free access radio or television station that is used directly and primarily for
36193619 the purpose of producing a broadcast signal or is such that the failure of
36203620 the machinery or equipment to operate would cause broadcasting to cease.
36213621 For purposes of this subsection, machinery and equipment shall include,
36223622 but not be limited to, that required by rules and regulations of the federal
36233623 communications commission, and all sales of electricity which are
36243624 essential or necessary for the purpose of producing a broadcast signal or is
36253625 such that the failure of the electricity would cause broadcasting to cease;
36263626 (aaa) all sales of tangible personal property and services purchased by
36273627 a religious organization that is exempt from federal income taxation
36283628 pursuant to section 501(c)(3) of the federal internal revenue code, and used
36293629 exclusively for religious purposes, and all sales of tangible personal
36303630 property or services purchased by a contractor for the purpose of
36313631 constructing, equipping, reconstructing, maintaining, repairing, enlarging,
36323632 furnishing or remodeling facilities for any such organization that would be
36333633 exempt from taxation under the provisions of this section if purchased
36343634 directly by such organization. Nothing in this subsection shall be deemed
36353635 to exempt the purchase of any construction machinery, equipment or tools
36363636 used in the constructing, equipping, reconstructing, maintaining, repairing,
36373637 enlarging, furnishing or remodeling facilities for any such organization.
36383638 When any such organization shall contract for the purpose of constructing,
36393639 equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
36403640 remodeling facilities, it shall obtain from the state and furnish to the
36413641 contractor an exemption certificate for the project involved, and the
36423642 contractor may purchase materials for incorporation in such project. The
36433643 contractor shall furnish the number of such certificate to all suppliers from
36443644 whom such purchases are made, and such suppliers shall execute invoices
36453645 covering the same bearing the number of such certificate. Upon
36463646 completion of the project the contractor shall furnish to such organization
36473647 concerned a sworn statement, on a form to be provided by the director of
36483648 taxation, that all purchases so made were entitled to exemption under this
36493649 subsection. All invoices shall be held by the contractor for a period of five
36503650 years and shall be subject to audit by the director of taxation. If any
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36943694 materials purchased under such a certificate are found not to have been
36953695 incorporated in the building or other project or not to have been returned
36963696 for credit or the sales or compensating tax otherwise imposed upon such
36973697 materials that will not be so incorporated in the building or other project
36983698 reported and paid by such contractor to the director of taxation not later
36993699 than the 20
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37013701 day of the month following the close of the month in which it
37023702 shall be determined that such materials will not be used for the purpose for
37033703 which such certificate was issued, such organization concerned shall be
37043704 liable for tax on all materials purchased for the project, and upon payment
37053705 thereof it may recover the same from the contractor together with
37063706 reasonable attorney fees. Any contractor or any agent, employee or
37073707 subcontractor thereof, who shall use or otherwise dispose of any materials
37083708 purchased under such a certificate for any purpose other than that for
37093709 which such a certificate is issued without the payment of the sales or
37103710 compensating tax otherwise imposed upon such materials, shall be guilty
37113711 of a misdemeanor and, upon conviction therefor, shall be subject to the
37123712 penalties provided for in K.S.A. 79-3615(h), and amendments thereto.
37133713 Sales tax paid on and after July 1, 1998, but prior to the effective date of
37143714 this act upon the gross receipts received from any sale exempted by the
37153715 amendatory provisions of this subsection shall be refunded. Each claim for
37163716 a sales tax refund shall be verified and submitted to the director of taxation
37173717 upon forms furnished by the director and shall be accompanied by any
37183718 additional documentation required by the director. The director shall
37193719 review each claim and shall refund that amount of sales tax paid as
37203720 determined under the provisions of this subsection. All refunds shall be
37213721 paid from the sales tax refund fund upon warrants of the director of
37223722 accounts and reports pursuant to vouchers approved by the director or the
37233723 director's designee;
37243724 (bbb) all sales of food for human consumption by an organization that
37253725 is exempt from federal income taxation pursuant to section 501(c)(3) of
37263726 the federal internal revenue code of 1986, pursuant to a food distribution
37273727 program that offers such food at a price below cost in exchange for the
37283728 performance of community service by the purchaser thereof;
37293729 (ccc) on and after July 1, 1999, all sales of tangible personal property
37303730 and services purchased by a primary care clinic or health center the
37313731 primary purpose of which is to provide services to medically underserved
37323732 individuals and families, and that is exempt from federal income taxation
37333733 pursuant to section 501(c)(3) of the federal internal revenue code, and all
37343734 sales of tangible personal property or services purchased by a contractor
37353735 for the purpose of constructing, equipping, reconstructing, maintaining,
37363736 repairing, enlarging, furnishing or remodeling facilities for any such clinic
37373737 or center that would be exempt from taxation under the provisions of this
37383738 section if purchased directly by such clinic or center, except that for
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37823782 taxable years commencing after December 31, 2013, this subsection shall
37833783 not apply to any sales of such tangible personal property and services
37843784 purchased by a primary care clinic or health center which performs any
37853785 abortion, as defined in K.S.A. 65-6701, and amendments thereto. Nothing
37863786 in this subsection shall be deemed to exempt the purchase of any
37873787 construction machinery, equipment or tools used in the constructing,
37883788 equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
37893789 remodeling facilities for any such clinic or center. When any such clinic or
37903790 center shall contract for the purpose of constructing, equipping,
37913791 reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
37923792 facilities, it shall obtain from the state and furnish to the contractor an
37933793 exemption certificate for the project involved, and the contractor may
37943794 purchase materials for incorporation in such project. The contractor shall
37953795 furnish the number of such certificate to all suppliers from whom such
37963796 purchases are made, and such suppliers shall execute invoices covering the
37973797 same bearing the number of such certificate. Upon completion of the
37983798 project the contractor shall furnish to such clinic or center concerned a
37993799 sworn statement, on a form to be provided by the director of taxation, that
38003800 all purchases so made were entitled to exemption under this subsection.
38013801 All invoices shall be held by the contractor for a period of five years and
38023802 shall be subject to audit by the director of taxation. If any materials
38033803 purchased under such a certificate are found not to have been incorporated
38043804 in the building or other project or not to have been returned for credit or
38053805 the sales or compensating tax otherwise imposed upon such materials that
38063806 will not be so incorporated in the building or other project reported and
38073807 paid by such contractor to the director of taxation not later than the 20
38083808 th
38093809 day of the month following the close of the month in which it shall be
38103810 determined that such materials will not be used for the purpose for which
38113811 such certificate was issued, such clinic or center concerned shall be liable
38123812 for tax on all materials purchased for the project, and upon payment
38133813 thereof it may recover the same from the contractor together with
38143814 reasonable attorney fees. Any contractor or any agent, employee or
38153815 subcontractor thereof, who shall use or otherwise dispose of any materials
38163816 purchased under such a certificate for any purpose other than that for
38173817 which such a certificate is issued without the payment of the sales or
38183818 compensating tax otherwise imposed upon such materials, shall be guilty
38193819 of a misdemeanor and, upon conviction therefor, shall be subject to the
38203820 penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
38213821 (ddd) on and after January 1, 1999, and before January 1, 2000, all
38223822 sales of materials and services purchased by any class II or III railroad as
38233823 classified by the federal surface transportation board for the construction,
38243824 renovation, repair or replacement of class II or III railroad track and
38253825 facilities used directly in interstate commerce. In the event any such track
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38693869 or facility for which materials and services were purchased sales tax
38703870 exempt is not operational for five years succeeding the allowance of such
38713871 exemption, the total amount of sales tax that would have been payable
38723872 except for the operation of this subsection shall be recouped in accordance
38733873 with rules and regulations adopted for such purpose by the secretary of
38743874 revenue;
38753875 (eee) on and after January 1, 1999, and before January 1, 2001, all
38763876 sales of materials and services purchased for the original construction,
38773877 reconstruction, repair or replacement of grain storage facilities, including
38783878 railroad sidings providing access thereto;
38793879 (fff) all sales of material handling equipment, racking systems and
38803880 other related machinery and equipment that is used for the handling,
38813881 movement or storage of tangible personal property in a warehouse or
38823882 distribution facility in this state; all sales of installation, repair and
38833883 maintenance services performed on such machinery and equipment; and
38843884 all sales of repair and replacement parts for such machinery and
38853885 equipment. For purposes of this subsection, a warehouse or distribution
38863886 facility means a single, fixed location that consists of buildings or
38873887 structures in a contiguous area where storage or distribution operations are
38883888 conducted that are separate and apart from the business' retail operations,
38893889 if any, and that do not otherwise qualify for exemption as occurring at a
38903890 manufacturing or processing plant or facility. Material handling and
38913891 storage equipment shall include aeration, dust control, cleaning, handling
38923892 and other such equipment that is used in a public grain warehouse or other
38933893 commercial grain storage facility, whether used for grain handling, grain
38943894 storage, grain refining or processing, or other grain treatment operation;
38953895 (ggg) all sales of tangible personal property and services purchased
38963896 by or on behalf of the Kansas academy of science, which is exempt from
38973897 federal income taxation pursuant to section 501(c)(3) of the federal
38983898 internal revenue code of 1986, and used solely by such academy for the
38993899 preparation, publication and dissemination of education materials;
39003900 (hhh) all sales of tangible personal property and services purchased
39013901 by or on behalf of all domestic violence shelters that are member agencies
39023902 of the Kansas coalition against sexual and domestic violence;
39033903 (iii) all sales of personal property and services purchased by an
39043904 organization that is exempt from federal income taxation pursuant to
39053905 section 501(c)(3) of the federal internal revenue code of 1986, and such
39063906 personal property and services are used by any such organization in the
39073907 collection, storage and distribution of food products to nonprofit
39083908 organizations that distribute such food products to persons pursuant to a
39093909 food distribution program on a charitable basis without fee or charge, and
39103910 all sales of tangible personal property or services purchased by a
39113911 contractor for the purpose of constructing, equipping, reconstructing,
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39553955 maintaining, repairing, enlarging, furnishing or remodeling facilities used
39563956 for the collection and storage of such food products for any such
39573957 organization which is exempt from federal income taxation pursuant to
39583958 section 501(c)(3) of the federal internal revenue code of 1986, that would
39593959 be exempt from taxation under the provisions of this section if purchased
39603960 directly by such organization. Nothing in this subsection shall be deemed
39613961 to exempt the purchase of any construction machinery, equipment or tools
39623962 used in the constructing, equipping, reconstructing, maintaining, repairing,
39633963 enlarging, furnishing or remodeling facilities for any such organization.
39643964 When any such organization shall contract for the purpose of constructing,
39653965 equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
39663966 remodeling facilities, it shall obtain from the state and furnish to the
39673967 contractor an exemption certificate for the project involved, and the
39683968 contractor may purchase materials for incorporation in such project. The
39693969 contractor shall furnish the number of such certificate to all suppliers from
39703970 whom such purchases are made, and such suppliers shall execute invoices
39713971 covering the same bearing the number of such certificate. Upon
39723972 completion of the project the contractor shall furnish to such organization
39733973 concerned a sworn statement, on a form to be provided by the director of
39743974 taxation, that all purchases so made were entitled to exemption under this
39753975 subsection. All invoices shall be held by the contractor for a period of five
39763976 years and shall be subject to audit by the director of taxation. If any
39773977 materials purchased under such a certificate are found not to have been
39783978 incorporated in such facilities or not to have been returned for credit or the
39793979 sales or compensating tax otherwise imposed upon such materials that will
39803980 not be so incorporated in such facilities reported and paid by such
39813981 contractor to the director of taxation not later than the 20
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39843984 month following the close of the month in which it shall be determined
39853985 that such materials will not be used for the purpose for which such
39863986 certificate was issued, such organization concerned shall be liable for tax
39873987 on all materials purchased for the project, and upon payment thereof it
39883988 may recover the same from the contractor together with reasonable
39893989 attorney fees. Any contractor or any agent, employee or subcontractor
39903990 thereof, who shall use or otherwise dispose of any materials purchased
39913991 under such a certificate for any purpose other than that for which such a
39923992 certificate is issued without the payment of the sales or compensating tax
39933993 otherwise imposed upon such materials, shall be guilty of a misdemeanor
39943994 and, upon conviction therefor, shall be subject to the penalties provided for
39953995 in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and after
39963996 July 1, 2005, but prior to the effective date of this act upon the gross
39973997 receipts received from any sale exempted by the amendatory provisions of
39983998 this subsection shall be refunded. Each claim for a sales tax refund shall be
39993999 verified and submitted to the director of taxation upon forms furnished by
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40434043 the director and shall be accompanied by any additional documentation
40444044 required by the director. The director shall review each claim and shall
40454045 refund that amount of sales tax paid as determined under the provisions of
40464046 this subsection. All refunds shall be paid from the sales tax refund fund
40474047 upon warrants of the director of accounts and reports pursuant to vouchers
40484048 approved by the director or the director's designee;
40494049 (jjj) all sales of dietary supplements dispensed pursuant to a
40504050 prescription order by a licensed practitioner or a mid-level practitioner as
40514051 defined by K.S.A. 65-1626, and amendments thereto. As used in this
40524052 subsection, "dietary supplement" means any product, other than tobacco,
40534053 intended to supplement the diet that: (1) Contains one or more of the
40544054 following dietary ingredients: A vitamin, a mineral, an herb or other
40554055 botanical, an amino acid, a dietary substance for use by humans to
40564056 supplement the diet by increasing the total dietary intake or a concentrate,
40574057 metabolite, constituent, extract or combination of any such ingredient; (2)
40584058 is intended for ingestion in tablet, capsule, powder, softgel, gelcap or
40594059 liquid form, or if not intended for ingestion, in such a form, is not
40604060 represented as conventional food and is not represented for use as a sole
40614061 item of a meal or of the diet; and (3) is required to be labeled as a dietary
40624062 supplement, identifiable by the supplemental facts box found on the label
40634063 and as required pursuant to 21 C.F.R. § 101.36;
40644064 (lll) all sales of tangible personal property and services purchased by
40654065 special olympics Kansas, inc. for the purpose of providing year-round
40664066 sports training and athletic competition in a variety of olympic-type sports
40674067 for individuals with intellectual disabilities by giving them continuing
40684068 opportunities to develop physical fitness, demonstrate courage, experience
40694069 joy and participate in a sharing of gifts, skills and friendship with their
40704070 families, other special olympics athletes and the community, and activities
40714071 provided or sponsored by such organization, and all sales of tangible
40724072 personal property by or on behalf of any such organization;
40734073 (mmm) all sales of tangible personal property purchased by or on
40744074 behalf of the Marillac center, inc., which is exempt from federal income
40754075 taxation pursuant to section 501(c)(3) of the federal internal revenue code,
40764076 for the purpose of providing psycho-social-biological and special
40774077 education services to children, and all sales of any such property by or on
40784078 behalf of such organization for such purpose;
40794079 (nnn) all sales of tangible personal property and services purchased
40804080 by the west Sedgwick county-sunrise rotary club and sunrise charitable
40814081 fund for the purpose of constructing a boundless playground which is an
40824082 integrated, barrier free and developmentally advantageous play
40834083 environment for children of all abilities and disabilities;
40844084 (ooo) all sales of tangible personal property by or on behalf of a
40854085 public library serving the general public and supported in whole or in part
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41294129 with tax money or a not-for-profit organization whose purpose is to raise
41304130 funds for or provide services or other benefits to any such public library;
41314131 (ppp) all sales of tangible personal property and services purchased
41324132 by or on behalf of a homeless shelter that is exempt from federal income
41334133 taxation pursuant to section 501(c)(3) of the federal income tax code of
41344134 1986, and used by any such homeless shelter to provide emergency and
41354135 transitional housing for individuals and families experiencing
41364136 homelessness, and all sales of any such property by or on behalf of any
41374137 such homeless shelter for any such purpose;
41384138 (qqq) all sales of tangible personal property and services purchased
41394139 by TLC for children and families, inc., hereinafter referred to as TLC,
41404140 which is exempt from federal income taxation pursuant to section 501(c)
41414141 (3) of the federal internal revenue code of 1986, and such property and
41424142 services are used for the purpose of providing emergency shelter and
41434143 treatment for abused and neglected children as well as meeting additional
41444144 critical needs for children, juveniles and family, and all sales of any such
41454145 property by or on behalf of TLC for any such purpose; and all sales of
41464146 tangible personal property or services purchased by a contractor for the
41474147 purpose of constructing, maintaining, repairing, enlarging, furnishing or
41484148 remodeling facilities for the operation of services for TLC for any such
41494149 purpose that would be exempt from taxation under the provisions of this
41504150 section if purchased directly by TLC. Nothing in this subsection shall be
41514151 deemed to exempt the purchase of any construction machinery, equipment
41524152 or tools used in the constructing, maintaining, repairing, enlarging,
41534153 furnishing or remodeling such facilities for TLC. When TLC contracts for
41544154 the purpose of constructing, maintaining, repairing, enlarging, furnishing
41554155 or remodeling such facilities, it shall obtain from the state and furnish to
41564156 the contractor an exemption certificate for the project involved, and the
41574157 contractor may purchase materials for incorporation in such project. The
41584158 contractor shall furnish the number of such certificate to all suppliers from
41594159 whom such purchases are made, and such suppliers shall execute invoices
41604160 covering the same bearing the number of such certificate. Upon
41614161 completion of the project the contractor shall furnish to TLC a sworn
41624162 statement, on a form to be provided by the director of taxation, that all
41634163 purchases so made were entitled to exemption under this subsection. All
41644164 invoices shall be held by the contractor for a period of five years and shall
41654165 be subject to audit by the director of taxation. If any materials purchased
41664166 under such a certificate are found not to have been incorporated in the
41674167 building or other project or not to have been returned for credit or the sales
41684168 or compensating tax otherwise imposed upon such materials that will not
41694169 be so incorporated in the building or other project reported and paid by
41704170 such contractor to the director of taxation not later than the 20
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41734173 month following the close of the month in which it shall be determined
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42174217 that such materials will not be used for the purpose for which such
42184218 certificate was issued, TLC shall be liable for tax on all materials
42194219 purchased for the project, and upon payment thereof it may recover the
42204220 same from the contractor together with reasonable attorney fees. Any
42214221 contractor or any agent, employee or subcontractor thereof, who shall use
42224222 or otherwise dispose of any materials purchased under such a certificate
42234223 for any purpose other than that for which such a certificate is issued
42244224 without the payment of the sales or compensating tax otherwise imposed
42254225 upon such materials, shall be guilty of a misdemeanor and, upon
42264226 conviction therefor, shall be subject to the penalties provided for in K.S.A.
42274227 79-3615(h), and amendments thereto;
42284228 (rrr) all sales of tangible personal property and services purchased by
42294229 any county law library maintained pursuant to law and sales of tangible
42304230 personal property and services purchased by an organization that would
42314231 have been exempt from taxation under the provisions of this subsection if
42324232 purchased directly by the county law library for the purpose of providing
42334233 legal resources to attorneys, judges, students and the general public, and
42344234 all sales of any such property by or on behalf of any such county law
42354235 library;
42364236 (sss) all sales of tangible personal property and services purchased by
42374237 catholic charities or youthville, hereinafter referred to as charitable family
42384238 providers, which is exempt from federal income taxation pursuant to
42394239 section 501(c)(3) of the federal internal revenue code of 1986, and which
42404240 such property and services are used for the purpose of providing
42414241 emergency shelter and treatment for abused and neglected children as well
42424242 as meeting additional critical needs for children, juveniles and family, and
42434243 all sales of any such property by or on behalf of charitable family
42444244 providers for any such purpose; and all sales of tangible personal property
42454245 or services purchased by a contractor for the purpose of constructing,
42464246 maintaining, repairing, enlarging, furnishing or remodeling facilities for
42474247 the operation of services for charitable family providers for any such
42484248 purpose which would be exempt from taxation under the provisions of this
42494249 section if purchased directly by charitable family providers. Nothing in
42504250 this subsection shall be deemed to exempt the purchase of any construction
42514251 machinery, equipment or tools used in the constructing, maintaining,
42524252 repairing, enlarging, furnishing or remodeling such facilities for charitable
42534253 family providers. When charitable family providers contracts for the
42544254 purpose of constructing, maintaining, repairing, enlarging, furnishing or
42554255 remodeling such facilities, it shall obtain from the state and furnish to the
42564256 contractor an exemption certificate for the project involved, and the
42574257 contractor may purchase materials for incorporation in such project. The
42584258 contractor shall furnish the number of such certificate to all suppliers from
42594259 whom such purchases are made, and such suppliers shall execute invoices
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43034303 covering the same bearing the number of such certificate. Upon
43044304 completion of the project the contractor shall furnish to charitable family
43054305 providers a sworn statement, on a form to be provided by the director of
43064306 taxation, that all purchases so made were entitled to exemption under this
43074307 subsection. All invoices shall be held by the contractor for a period of five
43084308 years and shall be subject to audit by the director of taxation. If any
43094309 materials purchased under such a certificate are found not to have been
43104310 incorporated in the building or other project or not to have been returned
43114311 for credit or the sales or compensating tax otherwise imposed upon such
43124312 materials that will not be so incorporated in the building or other project
43134313 reported and paid by such contractor to the director of taxation not later
43144314 than the 20
43154315 th
43164316 day of the month following the close of the month in which it
43174317 shall be determined that such materials will not be used for the purpose for
43184318 which such certificate was issued, charitable family providers shall be
43194319 liable for tax on all materials purchased for the project, and upon payment
43204320 thereof it may recover the same from the contractor together with
43214321 reasonable attorney fees. Any contractor or any agent, employee or
43224322 subcontractor thereof, who shall use or otherwise dispose of any materials
43234323 purchased under such a certificate for any purpose other than that for
43244324 which such a certificate is issued without the payment of the sales or
43254325 compensating tax otherwise imposed upon such materials, shall be guilty
43264326 of a misdemeanor and, upon conviction therefor, shall be subject to the
43274327 penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
43284328 (ttt) all sales of tangible personal property or services purchased by a
43294329 contractor for a project for the purpose of restoring, constructing,
43304330 equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
43314331 remodeling a home or facility owned by a nonprofit museum that has been
43324332 granted an exemption pursuant to subsection (qq), which such home or
43334333 facility is located in a city that has been designated as a qualified
43344334 hometown pursuant to the provisions of K.S.A. 75-5071 et seq., and
43354335 amendments thereto, and which such project is related to the purposes of
43364336 K.S.A. 75-5071 et seq., and amendments thereto, and that would be
43374337 exempt from taxation under the provisions of this section if purchased
43384338 directly by such nonprofit museum. Nothing in this subsection shall be
43394339 deemed to exempt the purchase of any construction machinery, equipment
43404340 or tools used in the restoring, constructing, equipping, reconstructing,
43414341 maintaining, repairing, enlarging, furnishing or remodeling a home or
43424342 facility for any such nonprofit museum. When any such nonprofit museum
43434343 shall contract for the purpose of restoring, constructing, equipping,
43444344 reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
43454345 a home or facility, it shall obtain from the state and furnish to the
43464346 contractor an exemption certificate for the project involved, and the
43474347 contractor may purchase materials for incorporation in such project. The
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43914391 contractor shall furnish the number of such certificates to all suppliers
43924392 from whom such purchases are made, and such suppliers shall execute
43934393 invoices covering the same bearing the number of such certificate. Upon
43944394 completion of the project, the contractor shall furnish to such nonprofit
43954395 museum a sworn statement on a form to be provided by the director of
43964396 taxation that all purchases so made were entitled to exemption under this
43974397 subsection. All invoices shall be held by the contractor for a period of five
43984398 years and shall be subject to audit by the director of taxation. If any
43994399 materials purchased under such a certificate are found not to have been
44004400 incorporated in the building or other project or not to have been returned
44014401 for credit or the sales or compensating tax otherwise imposed upon such
44024402 materials that will not be so incorporated in a home or facility or other
44034403 project reported and paid by such contractor to the director of taxation not
44044404 later than the 20
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44064406 day of the month following the close of the month in
44074407 which it shall be determined that such materials will not be used for the
44084408 purpose for which such certificate was issued, such nonprofit museum
44094409 shall be liable for tax on all materials purchased for the project, and upon
44104410 payment thereof it may recover the same from the contractor together with
44114411 reasonable attorney fees. Any contractor or any agent, employee or
44124412 subcontractor thereof, who shall use or otherwise dispose of any materials
44134413 purchased under such a certificate for any purpose other than that for
44144414 which such a certificate is issued without the payment of the sales or
44154415 compensating tax otherwise imposed upon such materials, shall be guilty
44164416 of a misdemeanor and, upon conviction therefor, shall be subject to the
44174417 penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
44184418 (uuu) all sales of tangible personal property and services purchased
44194419 by Kansas children's service league, hereinafter referred to as KCSL,
44204420 which is exempt from federal income taxation pursuant to section 501(c)
44214421 (3) of the federal internal revenue code of 1986, and which such property
44224422 and services are used for the purpose of providing for the prevention and
44234423 treatment of child abuse and maltreatment as well as meeting additional
44244424 critical needs for children, juveniles and family, and all sales of any such
44254425 property by or on behalf of KCSL for any such purpose; and all sales of
44264426 tangible personal property or services purchased by a contractor for the
44274427 purpose of constructing, maintaining, repairing, enlarging, furnishing or
44284428 remodeling facilities for the operation of services for KCSL for any such
44294429 purpose that would be exempt from taxation under the provisions of this
44304430 section if purchased directly by KCSL. Nothing in this subsection shall be
44314431 deemed to exempt the purchase of any construction machinery, equipment
44324432 or tools used in the constructing, maintaining, repairing, enlarging,
44334433 furnishing or remodeling such facilities for KCSL. When KCSL contracts
44344434 for the purpose of constructing, maintaining, repairing, enlarging,
44354435 furnishing or remodeling such facilities, it shall obtain from the state and
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44794479 furnish to the contractor an exemption certificate for the project involved,
44804480 and the contractor may purchase materials for incorporation in such
44814481 project. The contractor shall furnish the number of such certificate to all
44824482 suppliers from whom such purchases are made, and such suppliers shall
44834483 execute invoices covering the same bearing the number of such certificate.
44844484 Upon completion of the project the contractor shall furnish to KCSL a
44854485 sworn statement, on a form to be provided by the director of taxation, that
44864486 all purchases so made were entitled to exemption under this subsection.
44874487 All invoices shall be held by the contractor for a period of five years and
44884488 shall be subject to audit by the director of taxation. If any materials
44894489 purchased under such a certificate are found not to have been incorporated
44904490 in the building or other project or not to have been returned for credit or
44914491 the sales or compensating tax otherwise imposed upon such materials that
44924492 will not be so incorporated in the building or other project reported and
44934493 paid by such contractor to the director of taxation not later than the 20
44944494 th
44954495 day of the month following the close of the month in which it shall be
44964496 determined that such materials will not be used for the purpose for which
44974497 such certificate was issued, KCSL shall be liable for tax on all materials
44984498 purchased for the project, and upon payment thereof it may recover the
44994499 same from the contractor together with reasonable attorney fees. Any
45004500 contractor or any agent, employee or subcontractor thereof, who shall use
45014501 or otherwise dispose of any materials purchased under such a certificate
45024502 for any purpose other than that for which such a certificate is issued
45034503 without the payment of the sales or compensating tax otherwise imposed
45044504 upon such materials, shall be guilty of a misdemeanor and, upon
45054505 conviction therefor, shall be subject to the penalties provided for in K.S.A.
45064506 79-3615(h), and amendments thereto;
45074507 (vvv) all sales of tangible personal property or services, including the
45084508 renting and leasing of tangible personal property or services, purchased by
45094509 jazz in the woods, inc., a Kansas corporation that is exempt from federal
45104510 income taxation pursuant to section 501(c)(3) of the federal internal
45114511 revenue code, for the purpose of providing jazz in the woods, an event
45124512 benefiting children-in-need and other nonprofit charities assisting such
45134513 children, and all sales of any such property by or on behalf of such
45144514 organization for such purpose;
45154515 (www) all sales of tangible personal property purchased by or on
45164516 behalf of the Frontenac education foundation, which is exempt from
45174517 federal income taxation pursuant to section 501(c)(3) of the federal
45184518 internal revenue code, for the purpose of providing education support for
45194519 students, and all sales of any such property by or on behalf of such
45204520 organization for such purpose;
45214521 (xxx) all sales of personal property and services purchased by the
45224522 booth theatre foundation, inc., an organization, which is exempt from
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45664566 federal income taxation pursuant to section 501(c)(3) of the federal
45674567 internal revenue code of 1986, and which such personal property and
45684568 services are used by any such organization in the constructing, equipping,
45694569 reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
45704570 of the booth theatre, and all sales of tangible personal property or services
45714571 purchased by a contractor for the purpose of constructing, equipping,
45724572 reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
45734573 the booth theatre for such organization, that would be exempt from
45744574 taxation under the provisions of this section if purchased directly by such
45754575 organization. Nothing in this subsection shall be deemed to exempt the
45764576 purchase of any construction machinery, equipment or tools used in the
45774577 constructing, equipping, reconstructing, maintaining, repairing, enlarging,
45784578 furnishing or remodeling facilities for any such organization. When any
45794579 such organization shall contract for the purpose of constructing, equipping,
45804580 reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
45814581 facilities, it shall obtain from the state and furnish to the contractor an
45824582 exemption certificate for the project involved, and the contractor may
45834583 purchase materials for incorporation in such project. The contractor shall
45844584 furnish the number of such certificate to all suppliers from whom such
45854585 purchases are made, and such suppliers shall execute invoices covering the
45864586 same bearing the number of such certificate. Upon completion of the
45874587 project the contractor shall furnish to such organization concerned a sworn
45884588 statement, on a form to be provided by the director of taxation, that all
45894589 purchases so made were entitled to exemption under this subsection. All
45904590 invoices shall be held by the contractor for a period of five years and shall
45914591 be subject to audit by the director of taxation. If any materials purchased
45924592 under such a certificate are found not to have been incorporated in such
45934593 facilities or not to have been returned for credit or the sales or
45944594 compensating tax otherwise imposed upon such materials that will not be
45954595 so incorporated in such facilities reported and paid by such contractor to
45964596 the director of taxation not later than the 20
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45984598 day of the month following
45994599 the close of the month in which it shall be determined that such materials
46004600 will not be used for the purpose for which such certificate was issued, such
46014601 organization concerned shall be liable for tax on all materials purchased
46024602 for the project, and upon payment thereof it may recover the same from
46034603 the contractor together with reasonable attorney fees. Any contractor or
46044604 any agent, employee or subcontractor thereof, who shall use or otherwise
46054605 dispose of any materials purchased under such a certificate for any purpose
46064606 other than that for which such a certificate is issued without the payment
46074607 of the sales or compensating tax otherwise imposed upon such materials,
46084608 shall be guilty of a misdemeanor and, upon conviction therefor, shall be
46094609 subject to the penalties provided for in K.S.A. 79-3615(h), and
46104610 amendments thereto. Sales tax paid on and after January 1, 2007, but prior
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46544654 to the effective date of this act upon the gross receipts received from any
46554655 sale which would have been exempted by the provisions of this subsection
46564656 had such sale occurred after the effective date of this act shall be refunded.
46574657 Each claim for a sales tax refund shall be verified and submitted to the
46584658 director of taxation upon forms furnished by the director and shall be
46594659 accompanied by any additional documentation required by the director.
46604660 The director shall review each claim and shall refund that amount of sales
46614661 tax paid as determined under the provisions of this subsection. All refunds
46624662 shall be paid from the sales tax refund fund upon warrants of the director
46634663 of accounts and reports pursuant to vouchers approved by the director or
46644664 the director's designee;
46654665 (yyy) all sales of tangible personal property and services purchased
46664666 by TLC charities foundation, inc., hereinafter referred to as TLC charities,
46674667 which is exempt from federal income taxation pursuant to section 501(c)
46684668 (3) of the federal internal revenue code of 1986, and which such property
46694669 and services are used for the purpose of encouraging private philanthropy
46704670 to further the vision, values, and goals of TLC for children and families,
46714671 inc.; and all sales of such property and services by or on behalf of TLC
46724672 charities for any such purpose and all sales of tangible personal property or
46734673 services purchased by a contractor for the purpose of constructing,
46744674 maintaining, repairing, enlarging, furnishing or remodeling facilities for
46754675 the operation of services for TLC charities for any such purpose that would
46764676 be exempt from taxation under the provisions of this section if purchased
46774677 directly by TLC charities. Nothing in this subsection shall be deemed to
46784678 exempt the purchase of any construction machinery, equipment or tools
46794679 used in the constructing, maintaining, repairing, enlarging, furnishing or
46804680 remodeling such facilities for TLC charities. When TLC charities contracts
46814681 for the purpose of constructing, maintaining, repairing, enlarging,
46824682 furnishing or remodeling such facilities, it shall obtain from the state and
46834683 furnish to the contractor an exemption certificate for the project involved,
46844684 and the contractor may purchase materials for incorporation in such
46854685 project. The contractor shall furnish the number of such certificate to all
46864686 suppliers from whom such purchases are made, and such suppliers shall
46874687 execute invoices covering the same bearing the number of such certificate.
46884688 Upon completion of the project the contractor shall furnish to TLC
46894689 charities a sworn statement, on a form to be provided by the director of
46904690 taxation, that all purchases so made were entitled to exemption under this
46914691 subsection. All invoices shall be held by the contractor for a period of five
46924692 years and shall be subject to audit by the director of taxation. If any
46934693 materials purchased under such a certificate are found not to have been
46944694 incorporated in the building or other project or not to have been returned
46954695 for credit or the sales or compensating tax otherwise imposed upon such
46964696 materials that will not be incorporated into the building or other project
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47404740 reported and paid by such contractor to the director of taxation not later
47414741 than the 20
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47434743 day of the month following the close of the month in which it
47444744 shall be determined that such materials will not be used for the purpose for
47454745 which such certificate was issued, TLC charities shall be liable for tax on
47464746 all materials purchased for the project, and upon payment thereof it may
47474747 recover the same from the contractor together with reasonable attorney
47484748 fees. Any contractor or any agent, employee or subcontractor thereof, who
47494749 shall use or otherwise dispose of any materials purchased under such a
47504750 certificate for any purpose other than that for which such a certificate is
47514751 issued without the payment of the sales or compensating tax otherwise
47524752 imposed upon such materials, shall be guilty of a misdemeanor and, upon
47534753 conviction therefor, shall be subject to the penalties provided for in K.S.A.
47544754 79-3615(h), and amendments thereto;
47554755 (zzz) all sales of tangible personal property purchased by the rotary
47564756 club of shawnee foundation, which is exempt from federal income taxation
47574757 pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
47584758 as amended, used for the purpose of providing contributions to community
47594759 service organizations and scholarships;
47604760 (aaaa) all sales of personal property and services purchased by or on
47614761 behalf of victory in the valley, inc., which is exempt from federal income
47624762 taxation pursuant to section 501(c)(3) of the federal internal revenue code,
47634763 for the purpose of providing a cancer support group and services for
47644764 persons with cancer, and all sales of any such property by or on behalf of
47654765 any such organization for any such purpose;
47664766 (bbbb) all sales of entry or participation fees, charges or tickets by
47674767 Guadalupe health foundation, which is exempt from federal income
47684768 taxation pursuant to section 501(c)(3) of the federal internal revenue code,
47694769 for such organization's annual fundraising event which purpose is to
47704770 provide health care services for uninsured workers;
47714771 (cccc) all sales of tangible personal property or services purchased by
47724772 or on behalf of wayside waifs, inc., which is exempt from federal income
47734773 taxation pursuant to section 501(c)(3) of the federal internal revenue code,
47744774 for the purpose of providing such organization's annual fundraiser, an
47754775 event whose purpose is to support the care of homeless and abandoned
47764776 animals, animal adoption efforts, education programs for children and
47774777 efforts to reduce animal over-population and animal welfare services, and
47784778 all sales of any such property, including entry or participation fees or
47794779 charges, by or on behalf of such organization for such purpose;
47804780 (dddd) all sales of tangible personal property or services purchased
47814781 by or on behalf of goodwill industries or Easter seals of Kansas, inc., both
47824782 of which are exempt from federal income taxation pursuant to section
47834783 501(c)(3) of the federal internal revenue code, for the purpose of providing
47844784 education, training and employment opportunities for people with
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48284828 disabilities and other barriers to employment;
48294829 (eeee) all sales of tangible personal property or services purchased by
48304830 or on behalf of all American beef battalion, inc., which is exempt from
48314831 federal income taxation pursuant to section 501(c)(3) of the federal
48324832 internal revenue code, for the purpose of educating, promoting and
48334833 participating as a contact group through the beef cattle industry in order to
48344834 carry out such projects that provide support and morale to members of the
48354835 United States armed forces and military services;
48364836 (ffff) all sales of tangible personal property and services purchased by
48374837 sheltered living, inc., which is exempt from federal income taxation
48384838 pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
48394839 and which such property and services are used for the purpose of
48404840 providing residential and day services for people with developmental
48414841 disabilities or intellectual disability, or both, and all sales of any such
48424842 property by or on behalf of sheltered living, inc., for any such purpose; and
48434843 all sales of tangible personal property or services purchased by a
48444844 contractor for the purpose of rehabilitating, constructing, maintaining,
48454845 repairing, enlarging, furnishing or remodeling homes and facilities for
48464846 sheltered living, inc., for any such purpose that would be exempt from
48474847 taxation under the provisions of this section if purchased directly by
48484848 sheltered living, inc. Nothing in this subsection shall be deemed to exempt
48494849 the purchase of any construction machinery, equipment or tools used in the
48504850 constructing, maintaining, repairing, enlarging, furnishing or remodeling
48514851 such homes and facilities for sheltered living, inc. When sheltered living,
48524852 inc., contracts for the purpose of rehabilitating, constructing, maintaining,
48534853 repairing, enlarging, furnishing or remodeling such homes and facilities, it
48544854 shall obtain from the state and furnish to the contractor an exemption
48554855 certificate for the project involved, and the contractor may purchase
48564856 materials for incorporation in such project. The contractor shall furnish the
48574857 number of such certificate to all suppliers from whom such purchases are
48584858 made, and such suppliers shall execute invoices covering the same bearing
48594859 the number of such certificate. Upon completion of the project the
48604860 contractor shall furnish to sheltered living, inc., a sworn statement, on a
48614861 form to be provided by the director of taxation, that all purchases so made
48624862 were entitled to exemption under this subsection. All invoices shall be held
48634863 by the contractor for a period of five years and shall be subject to audit by
48644864 the director of taxation. If any materials purchased under such a certificate
48654865 are found not to have been incorporated in the building or other project or
48664866 not to have been returned for credit or the sales or compensating tax
48674867 otherwise imposed upon such materials that will not be so incorporated in
48684868 the building or other project reported and paid by such contractor to the
48694869 director of taxation not later than the 20
48704870 th
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48724872 close of the month in which it shall be determined that such materials will
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49164916 not be used for the purpose for which such certificate was issued, sheltered
49174917 living, inc., shall be liable for tax on all materials purchased for the
49184918 project, and upon payment thereof it may recover the same from the
49194919 contractor together with reasonable attorney fees. Any contractor or any
49204920 agent, employee or subcontractor thereof, who shall use or otherwise
49214921 dispose of any materials purchased under such a certificate for any purpose
49224922 other than that for which such a certificate is issued without the payment
49234923 of the sales or compensating tax otherwise imposed upon such materials,
49244924 shall be guilty of a misdemeanor and, upon conviction therefor, shall be
49254925 subject to the penalties provided for in K.S.A. 79-3615(h), and
49264926 amendments thereto;
49274927 (gggg) all sales of game birds for which the primary purpose is use in
49284928 hunting;
49294929 (hhhh) all sales of tangible personal property or services purchased
49304930 on or after July 1, 2014, for the purpose of and in conjunction with
49314931 constructing, reconstructing, enlarging or remodeling a business identified
49324932 under the North American industry classification system (NAICS)
49334933 subsectors 1123, 1124, 112112, 112120 or 112210, and the sale and
49344934 installation of machinery and equipment purchased for installation at any
49354935 such business. The exemption provided in this subsection shall not apply
49364936 to projects that have actual total costs less than $50,000. When a person
49374937 contracts for the construction, reconstruction, enlargement or remodeling
49384938 of any such business, such person shall obtain from the state and furnish to
49394939 the contractor an exemption certificate for the project involved, and the
49404940 contractor may purchase materials, machinery and equipment for
49414941 incorporation in such project. The contractor shall furnish the number of
49424942 such certificates to all suppliers from whom such purchases are made, and
49434943 such suppliers shall execute invoices covering the same bearing the
49444944 number of such certificate. Upon completion of the project, the contractor
49454945 shall furnish to the owner of the business a sworn statement, on a form to
49464946 be provided by the director of taxation, that all purchases so made were
49474947 entitled to exemption under this subsection. All invoices shall be held by
49484948 the contractor for a period of five years and shall be subject to audit by the
49494949 director of taxation. Any contractor or any agent, employee or
49504950 subcontractor of the contractor, who shall use or otherwise dispose of any
49514951 materials, machinery or equipment purchased under such a certificate for
49524952 any purpose other than that for which such a certificate is issued without
49534953 the payment of the sales or compensating tax otherwise imposed thereon,
49544954 shall be guilty of a misdemeanor and, upon conviction therefor, shall be
49554955 subject to the penalties provided for in K.S.A. 79-3615(h), and
49564956 amendments thereto;
49574957 (iiii) all sales of tangible personal property or services purchased by a
49584958 contractor for the purpose of constructing, maintaining, repairing,
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50025002 enlarging, furnishing or remodeling facilities for the operation of services
50035003 for Wichita children's home for any such purpose that would be exempt
50045004 from taxation under the provisions of this section if purchased directly by
50055005 Wichita children's home. Nothing in this subsection shall be deemed to
50065006 exempt the purchase of any construction machinery, equipment or tools
50075007 used in the constructing, maintaining, repairing, enlarging, furnishing or
50085008 remodeling such facilities for Wichita children's home. When Wichita
50095009 children's home contracts for the purpose of constructing, maintaining,
50105010 repairing, enlarging, furnishing or remodeling such facilities, it shall obtain
50115011 from the state and furnish to the contractor an exemption certificate for the
50125012 project involved, and the contractor may purchase materials for
50135013 incorporation in such project. The contractor shall furnish the number of
50145014 such certificate to all suppliers from whom such purchases are made, and
50155015 such suppliers shall execute invoices covering the same bearing the
50165016 number of such certificate. Upon completion of the project, the contractor
50175017 shall furnish to Wichita children's home a sworn statement, on a form to be
50185018 provided by the director of taxation, that all purchases so made were
50195019 entitled to exemption under this subsection. All invoices shall be held by
50205020 the contractor for a period of five years and shall be subject to audit by the
50215021 director of taxation. If any materials purchased under such a certificate are
50225022 found not to have been incorporated in the building or other project or not
50235023 to have been returned for credit or the sales or compensating tax otherwise
50245024 imposed upon such materials that will not be so incorporated in the
50255025 building or other project reported and paid by such contractor to the
50265026 director of taxation not later than the 20
50275027 th
50285028 day of the month following the
50295029 close of the month in which it shall be determined that such materials will
50305030 not be used for the purpose for which such certificate was issued, Wichita
50315031 children's home shall be liable for the tax on all materials purchased for the
50325032 project, and upon payment, it may recover the same from the contractor
50335033 together with reasonable attorney fees. Any contractor or any agent,
50345034 employee or subcontractor, who shall use or otherwise dispose of any
50355035 materials purchased under such a certificate for any purpose other than that
50365036 for which such a certificate is issued without the payment of the sales or
50375037 compensating tax otherwise imposed upon such materials, shall be guilty
50385038 of a misdemeanor and, upon conviction, shall be subject to the penalties
50395039 provided for in K.S.A. 79-3615(h), and amendments thereto;
50405040 (jjjj) all sales of tangible personal property or services purchased by
50415041 or on behalf of the beacon, inc., that is exempt from federal income
50425042 taxation pursuant to section 501(c)(3) of the federal internal revenue code,
50435043 for the purpose of providing those desiring help with food, shelter, clothing
50445044 and other necessities of life during times of special need;
50455045 (kkkk) all sales of tangible personal property and services purchased
50465046 by or on behalf of reaching out from within, inc., which is exempt from
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50905090 federal income taxation pursuant to section 501(c)(3) of the federal
50915091 internal revenue code, for the purpose of sponsoring self-help programs for
50925092 incarcerated persons that will enable such incarcerated persons to become
50935093 role models for non-violence while in correctional facilities and productive
50945094 family members and citizens upon return to the community;
50955095 (llll) all sales of tangible personal property and services purchased by
50965096 Gove county healthcare endowment foundation, inc., which is exempt
50975097 from federal income taxation pursuant to section 501(c)(3) of the federal
50985098 internal revenue code of 1986, and which such property and services are
50995099 used for the purpose of constructing and equipping an airport in Quinter,
51005100 Kansas, and all sales of tangible personal property or services purchased
51015101 by a contractor for the purpose of constructing and equipping an airport in
51025102 Quinter, Kansas, for such organization, that would be exempt from
51035103 taxation under the provisions of this section if purchased directly by such
51045104 organization. Nothing in this subsection shall be deemed to exempt the
51055105 purchase of any construction machinery, equipment or tools used in the
51065106 constructing or equipping of facilities for such organization. When such
51075107 organization shall contract for the purpose of constructing or equipping an
51085108 airport in Quinter, Kansas, it shall obtain from the state and furnish to the
51095109 contractor an exemption certificate for the project involved, and the
51105110 contractor may purchase materials for incorporation in such project. The
51115111 contractor shall furnish the number of such certificate to all suppliers from
51125112 whom such purchases are made, and such suppliers shall execute invoices
51135113 covering the same bearing the number of such certificate. Upon
51145114 completion of the project, the contractor shall furnish to such organization
51155115 concerned a sworn statement, on a form to be provided by the director of
51165116 taxation, that all purchases so made were entitled to exemption under this
51175117 subsection. All invoices shall be held by the contractor for a period of five
51185118 years and shall be subject to audit by the director of taxation. If any
51195119 materials purchased under such a certificate are found not to have been
51205120 incorporated in such facilities or not to have been returned for credit or the
51215121 sales or compensating tax otherwise imposed upon such materials that will
51225122 not be so incorporated in such facilities reported and paid by such
51235123 contractor to the director of taxation no later than the 20
51245124 th
51255125 day of the month
51265126 following the close of the month in which it shall be determined that such
51275127 materials will not be used for the purpose for which such certificate was
51285128 issued, such organization concerned shall be liable for tax on all materials
51295129 purchased for the project, and upon payment thereof it may recover the
51305130 same from the contractor together with reasonable attorney fees. Any
51315131 contractor or any agent, employee or subcontractor thereof, who purchased
51325132 under such a certificate for any purpose other than that for which such a
51335133 certificate is issued without the payment of the sales or compensating tax
51345134 otherwise imposed upon such materials, shall be guilty of a misdemeanor
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51785178 and, upon conviction therefor, shall be subject to the penalties provided for
51795179 in K.S.A. 79-3615(h), and amendments thereto. The provisions of this
51805180 subsection shall expire and have no effect on and after July 1, 2019;
51815181 (mmmm) all sales of gold or silver coins; and palladium, platinum,
51825182 gold or silver bullion. For the purposes of this subsection, "bullion" means
51835183 bars, ingots or commemorative medallions of gold, silver, platinum,
51845184 palladium, or a combination thereof, for which the value of the metal
51855185 depends on its content and not the form;
51865186 (nnnn) all sales of tangible personal property or services purchased
51875187 by friends of hospice of Jefferson county, an organization that is exempt
51885188 from federal income taxation pursuant to section 501(c)(3) of the federal
51895189 internal revenue code of 1986, for the purpose of providing support to the
51905190 Jefferson county hospice agency in end-of-life care of Jefferson county
51915191 families, friends and neighbors, and all sales of entry or participation fees,
51925192 charges or tickets by friends of hospice of Jefferson county for such
51935193 organization's fundraising event for such purpose; and
51945194 (oooo) all sales of tangible personal property or services purchased
51955195 for the purpose of and in conjunction with constructing, reconstructing,
51965196 enlarging or remodeling a qualified business facility by a qualified firm or
51975197 qualified supplier that meets the requirements established in K.S.A. 2022
51985198 Supp. 74-50,312 and 74-50,319, and amendments thereto, and that has
51995199 been approved for a project exemption certificate by the secretary of
52005200 commerce, and the sale and installation of machinery and equipment
52015201 purchased by such qualified firm or qualified supplier for installation at
52025202 any such qualified business facility. When a person shall contract for the
52035203 construction, reconstruction, enlargement or remodeling of any such
52045204 qualified business facility, such person shall obtain from the state and
52055205 furnish to the contractor an exemption certificate for the project involved,
52065206 and the contractor may purchase materials, machinery and equipment for
52075207 incorporation in such project. The contractor shall furnish the number of
52085208 such certificates to all suppliers from whom such purchases are made, and
52095209 such suppliers shall execute invoices covering the same bearing the
52105210 number of such certificate. Upon completion of the project, the contractor
52115211 shall furnish to the owner of the qualified firm or qualified supplier a
52125212 sworn statement, on a form to be provided by the director of taxation, that
52135213 all purchases so made were entitled to exemption under this subsection.
52145214 All invoices shall be held by the contractor for a period of five years and
52155215 shall be subject to audit by the director of taxation. Any contractor or any
52165216 agent, employee or subcontractor thereof who shall use or otherwise
52175217 dispose of any materials, machinery or equipment purchased under such a
52185218 certificate for any purpose other than that for which such a certificate is
52195219 issued without the payment of the sales or compensating tax otherwise
52205220 imposed thereon, shall be guilty of a misdemeanor and, upon conviction
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52645264 therefor, shall be subject to the penalties provided for in K.S.A. 79-
52655265 3615(h), and amendments thereto. As used in this subsection, "qualified
52665266 business facility," "qualified firm" and "qualified supplier" mean the same
52675267 as defined in K.S.A. 2022 Supp. 74-50,311, and amendments thereto.
52685268 New Sec. 23. The provisions of this act are hereby declared
52695269 severable. If any part or provision of this act is held to be void, invalid or
52705270 unconstitutional, such part or provision shall not affect or impair any of the
52715271 remaining parts or provisions of this act, and any such remaining
52725272 provisions shall continue in full force and effect.
52735273 Sec. 24. K.S.A. 38-2003, 65-445, 65-4a01, 65-4a02, 65-4a03, 65-
52745274 4a04, 65-4a05, 65-4a06, 65-4a07, 65-4a08, 65-4a09, 65-4a10, 65-4a11,
52755275 65-4a12, 65-2401, 65-2837, 65-6701, 65-6702, 65-6703, 65-6704, 65-
52765276 6705, 65-6707, 65-6708, 65-6709, 65-6710, 65-6711, 65-6712, 65-6714,
52775277 65-6715, 65-6721, 65-6722, 65-6723, 65-6724, 65-6725, 65-6726, 65-
52785278 6731, 65-6732, 65-6741, 65-6742, 65-6743, 65-6744, 65-6745, 65-6746,
52795279 65-6747, 65-6748, 65-6749, 65-67a01, 65-67a02, 65-67a04, 65-67a07, 65-
52805280 67a09, 76-3308 and 79-32,195 and K.S.A. 2022 Supp. 21-5301, 21-5302,
52815281 21-5303, 60-1901, 60-1906, 79-32,182b, 79-32,261 and 79-3606 are
52825282 hereby repealed.
52835283 Sec. 25. This act shall take effect and be in force from and after its
52845284 publication in the statute book.
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