Kansas 2023-2024 Regular Session

Kansas Senate Bill SB171 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	Session of 2023
2	2	SENATE BILL No. 171
3	3	By Senators Holland, Corson, Doll, Faust Goudeau, Francisco, Haley, Pettey and
4	4	Pittman
5	5	2-7
6	6	AN ACT concerning health and healthcare; creating the veterans first
7	7	medical cannabis act; providing for the regulation of the cultivation,
8	8	distribution, sale and use of medical cannabis; establishing the cannabis
9	9	regulatory commission; imposing an excise tax on the cultivation and
10	10	sale of medical cannabis; amending K.S.A. 65-28a05, 65-28b08, 79-
11	11	5201 and 79-5210 and K.S.A. 2022 Supp. 21-5703, 21-5705, 21-5706,
12	12	21-5707, 21-5709, 21-5710, 65-1120, 65-2836 and 79-3606 and
13	13	repealing the existing sections.
14	14	Be it enacted by the Legislature of the State of Kansas:
15	15	New Section 1. The provisions of sections 1 through 14, and
16	16	amendments thereto, shall be known and may be cited as the veterans first
17	17	medical cannabis act.
18	18	New Sec. 2. As used in the veterans first medical cannabis act:
19	19	(a) "Adequate supply" means an amount of medical cannabis
20	20	consumer product possessed by a qualified patient, or by a qualified
21	21	patient's primary caregiver on behalf of the qualified patient, that is no
22	22	more than reasonably necessary to ensure the uninterrupted availability of
23	23	medical cannabis consumer product to the qualified patient for a period of
24	24	three months, as specified in rules and regulations adopted by the state
25	25	board of pharmacy.
26	26	(b) "Cannabis" means all parts of the plant cannabis sativa L.,
27	27	whether growing or not, and the resin extracted therefrom, solely derived
28	28	from intrastate sources.
29	29	(c) "Healthcare provider" includes: Physician; certified nurse-
30	30	midwife engaging in the independent practice of midwifery under the
31	31	independent practice of midwifery act; advanced practice registered nurse
32	32	licensed under the Kansas nurse practice act; or physician assistant
33	33	licensed under the physician assistant licensure act.
34	34	(d) "Medical cannabis consumer product" means the dried leaves and
35	35	flowers of the cannabis plant.
36	36	(e) "Medical cannabis dispensary" means a facility licensed under
37	37	section 6, and amendments thereto, to sell medical cannabis consumer
38	38	products to qualified patients.
39	39	(f) "Medical cannabis grower-distributor" means a facility licensed
40	40	1
41	41	2
42	42	3
43	43	4
44	44	5
45	45	6
46	46	7
47	47	8
48	48	9
49	49	10
50	50	11
51	51	12
52	52	13
53	53	14
54	54	15
55	55	16
56	56	17
57	57	18
58	58	19
59	59	20
60	60	21
61	61	22
62	62	23
63	63	24
64	64	25
65	65	26
66	66	27
67	67	28
68	68	29
69	69	30
70	70	31
71	71	32
72	72	33
73	73	34
74	74	35 SB 171 2
75	75	under section 4, and amendments thereto, to cultivate and harvest cannabis
76	76	for sale to medical cannabis dispensaries.
77	77	(g) "Physician" means a person licensed by the state board of healing
78	78	arts to practice medicine and surgery.
79	79	(h) "Primary caregiver" means a person who is a resident of Kansas,
80	80	who is at least 18 years of age and who has been designated by a qualified
81	81	patient and the patient's physician as necessary to take responsibility for
82	82	managing the well-being of the patient with respect to the medical use of
83	83	cannabis.
84	84	(i) "Qualified patient" means a person who is a resident of Kansas,
85	85	has been diagnosed by a healthcare provider as having a qualifying
86	86	medical condition and has a written certification issued by the patient's
87	87	healthcare provider.
88	88	(j) "Qualifying medical condition" means any of the following
89	89	conditions, as diagnosed by a healthcare provider and documented in a
90	90	written certification:
91	91	(1) Amyotrophic lateral sclerosis;
92	92	(2) cancer;
93	93	(3) Crohn's disease;
94	94	(4) damage to the nervous tissue of the spinal cord, if the patient has
95	95	objective neurological indication of intractable spasticity;
96	96	(5) epilepsy or any other seizure disorder specified by the board of
97	97	pharmacy;
98	98	(6) glaucoma;
99	99	(7) hepatitis C virus, if the patient is receiving antiviral treatment;
100	100	(8) human immunodeficiency virus or acquired immune deficiency
101	101	syndrome;
102	102	(9) Huntington's disease;
103	103	(10) inclusion body myositis;
104	104	(11) inflammatory autoimmune-mediated arthritis;
105	105	(12) intractable nausea or vomiting;
106	106	(13) multiple sclerosis;
107	107	(14) obstructive sleep apnea;
108	108	(15) painful peripheral neuropathy;
109	109	(16) Parkinson's disease;
110	110	(17) post-traumatic stress disorder;
111	111	(18) severe chronic pain;
112	112	(19) severe anorexia or cachexia;
113	113	(20) spasmodic torticollis or cervical dystonia;
114	114	(21) ulcerative colitis;
115	115	(22) admission into hospice care; or
116	116	(23) any other medical condition that results in pain, suffering or
117	117	debility and for which there is credible evidence satisfactory to the state
118	118	1
119	119	2
120	120	3
121	121	4
122	122	5
123	123	6
124	124	7
125	125	8
126	126	9
127	127	10
128	128	11
129	129	12
130	130	13
131	131	14
132	132	15
133	133	16
134	134	17
135	135	18
136	136	19
137	137	20
138	138	21
139	139	22
140	140	23
141	141	24
142	142	25
143	143	26
144	144	27
145	145	28
146	146	29
147	147	30
148	148	31
149	149	32
150	150	33
151	151	34
152	152	35
153	153	36
154	154	37
155	155	38
156	156	39
157	157	40
158	158	41
159	159	42
160	160	43 SB 171 3
161	161	board of pharmacy that the medical use of cannabis could benefit, as
162	162	specified in rules and regulations adopted by the state board of pharmacy.
163	163	(k) "Written certification" means a statement made and signed by a
164	164	patient's healthcare provider that: The healthcare provider has a valid
165	165	healthcare provider-patient relationship with the patient; the healthcare
166	166	provider has the lawful authority to issue the written certification in
167	167	accordance with statutes, rules and regulations and professional standards
168	168	of practice applicable to the healthcare provider; in the healthcare
169	169	provider's professional opinion, the patient has a qualifying medical
170	170	condition; and the healthcare provider believes that, for the patient, the
171	171	potential health benefits of the medical use of cannabis would likely
172	172	outweigh the potential health risks.
173	173	New Sec. 3. (a) (1) A healthcare provider may issue a written
174	174	certification to a patient with whom the healthcare provider has a valid
175	175	healthcare provider-patient relationship, subject to all statutes, rules and
176	176	regulations and standards of practice applicable to the healthcare provider.
177	177	(2) A healthcare provider may revoke an issued written certification
178	178	at any time if the healthcare provider determines that the patient's
179	179	circumstances have changed rendering the written certification
180	180	inappropriate in the healthcare provider's professional judgment or
181	181	unlawful. The healthcare provider shall immediately notify the department
182	182	of health and environment of any such revocation.
183	183	(b) (1) A person may apply to the department of health and
184	184	environment for an initial or renewed patient identification card on a form,
185	185	in a manner and accompanied by an application fee not to exceed $50
186	186	specified by the department of health and environment. If applicable, the
187	187	person may apply for a caregiver identification card for the patient's
188	188	primary caregiver on a form, in a manner and accompanied by an
189	189	application fee not to exceed $50 specified by the department of health and
190	190	environment. If the person is a recipient of state medicaid services, the
191	191	application fee shall be $10.
192	192	(2) A valid patient identification card shall authorize the qualified
193	193	patient to possess an adequate supply of medical cannabis consumer
194	194	product, or to collectively possess an adequate supply of medical cannabis
195	195	consumer product with the patient's primary caregiver, if any, and to
196	196	acquire an adequate supply of medical cannabis consumer product from a
197	197	medical cannabis dispensary.
198	198	(3) A valid caregiver identification card shall authorize the primary
199	199	caregiver to possess an adequate supply of medical cannabis consumer
200	200	product, or to collectively possess an adequate supply of medical cannabis
201	201	consumer product with the associated qualified patient, and to acquire, on
202	202	behalf of the associated qualified patient, an adequate supply of medical
203	203	cannabis consumer product from a medical cannabis dispensary.
204	204	1
205	205	2
206	206	3
207	207	4
208	208	5
209	209	6
210	210	7
211	211	8
212	212	9
213	213	10
214	214	11
215	215	12
216	216	13
217	217	14
218	218	15
219	219	16
220	220	17
221	221	18
222	222	19
223	223	20
224	224	21
225	225	22
226	226	23
227	227	24
228	228	25
229	229	26
230	230	27
231	231	28
232	232	29
233	233	30
234	234	31
235	235	32
236	236	33
237	237	34
238	238	35
239	239	36
240	240	37
241	241	38
242	242	39
243	243	40
244	244	41
245	245	42
246	246	43 SB 171 4
247	247	(c) An applicant shall provide the following information and
248	248	documentation on an application for a patient identification card:
249	249	(1) The person's name, date of birth, address and telephone number;
250	250	(2) any qualifying medical condition for which the patient has a
251	251	current diagnosis from a healthcare provider;
252	252	(3) the name, address and telephone number of the patient's
253	253	physician;
254	254	(4) the name, date of birth, address and telephone number of the
255	255	patient's primary caregiver, if any;
256	256	(5) the written certification issued by the person's healthcare provider;
257	257	and
258	258	(6) any other information required by the department of health and
259	259	environment, as specified in rules and regulations adopted by the
260	260	department of health and environment.
261	261	(d) Within 30 calendar days of receiving any application for a patient
262	262	identification card or a caregiver identification card, the department of
263	263	health and environment shall issue a decision to grant or deny the patient
264	264	identification card. The department of health and environment shall verify
265	265	the written certification directly with the healthcare provider who issued
266	266	the written certification.
267	267	(e) The department of health and environment shall deny any
268	268	application for a patient identification card or caregiver identification card
269	269	if: The applicant did not provide any of the information required by
270	270	subsection (b); if the department determines any of the information
271	271	provided is false; or if the applicant has previously had a patient
272	272	identification card or caregiver identification card revoked. Any applicant
273	273	whose application is denied because the applicant provided false
274	274	information shall not be eligible to reapply for a period of six months,
275	275	unless specifically authorized by the department of health and
276	276	environment.
277	277	(f) Within five business days of approving an application for a patient
278	278	identification card or caregiver identification card, the department of
279	279	health and environment shall issue the patient identification card and, if
280	280	applicable, the caregiver identification card. The patient identification card
281	281	and caregiver identification card shall be effective for two years. Each
282	282	patient identification card and caregiver identification card shall contain:
283	283	(1) The name, address and date of birth of the qualified patient;
284	284	(2) the name, address and date of birth of the qualified patient's
285	285	primary caregiver, if any;
286	286	(3) the date of issuance and expiration date of the patient
287	287	identification card or caregiver identification card; and
288	288	(4) other information required by the department of health and
289	289	environment.
290	290	1
291	291	2
292	292	3
293	293	4
294	294	5
295	295	6
296	296	7
297	297	8
298	298	9
299	299	10
300	300	11
301	301	12
302	302	13
303	303	14
304	304	15
305	305	16
306	306	17
307	307	18
308	308	19
309	309	20
310	310	21
311	311	22
312	312	23
313	313	24
314	314	25
315	315	26
316	316	27
317	317	28
318	318	29
319	319	30
320	320	31
321	321	32
322	322	33
323	323	34
324	324	35
325	325	36
326	326	37
327	327	38
328	328	39
329	329	40
330	330	41
331	331	42
332	332	43 SB 171 5
333	333	(g) The department of health and environment may refuse to issue or
334	334	reissue a patient identification card or caregiver identification card or
335	335	revoke or suspend a patient identification card or caregiver identification
336	336	card for any of the following reasons:
337	337	(1) The applicant has failed to comply with any provision of the
338	338	veterans first medical cannabis act, any rules and regulations adopted by
339	339	the department of health and environment thereunder or any order of the
340	340	department;
341	341	(2) the department has been notified by a healthcare provider that the
342	342	healthcare provider has revoked a written certification previously issued
343	343	for the applicant;
344	344	(3) the applicant has falsified or misrepresented any information
345	345	submitted to the department under this section;
346	346	(4) the applicant has failed to adhere to any acknowledgement,
347	347	verification or other representation made to the department;
348	348	(5) the applicant has failed to submit or disclose information
349	349	requested by the department under this section; or
350	350	(6) the applicant has threatened or harmed a healthcare provider or an
351	351	employee of the department in attempting to obtain a patient identification
352	352	card or caregiver identification card.
353	353	(h) All actions by the department of health and environment under
354	354	this section shall be in accordance with the Kansas administrative
355	355	procedure act and reviewable in accordance with the Kansas judicial
356	356	review act.
357	357	(i) For the first 60 days following the effective date of the veterans
358	358	first medical cannabis act, the department of health and environment shall
359	359	grant patient identification cards only to, or caregiver identification cards
360	360	connected to, individuals who are currently serving military service with
361	361	the army, navy, marine corps, air force, air or army national guard of
362	362	Kansas, coast guard or any branch of the military reserves of the United
363	363	States or who have been separated from such military service by honorable
364	364	discharge or general discharge under honorable conditions.
365	365	New Sec. 4. (a) (1) An individual may apply to the cannabis
366	366	regulatory commission for initial or renewed licensure as a medical
367	367	cannabis grower-distributor on a form, in a manner and accompanied by an
368	368	application fee or renewal fee not to exceed $15,000 prescribed by the
369	369	cannabis regulatory commission. Licensure as a medical cannabis grower-
370	370	distributor shall authorize the licensee to cultivate cannabis, to dry
371	371	cannabis into dried leaves and flowers for sale or other transfer to a
372	372	medical cannabis dispensary and to distribute or transport medical
373	373	cannabis consumer products to a medical cannabis dispensary in
374	374	accordance with and for the purposes set forth in this section, and to
375	375	perform other acts deemed necessary and incidental thereto by the
376	376	1
377	377	2
378	378	3
379	379	4
380	380	5
381	381	6
382	382	7
383	383	8
384	384	9
385	385	10
386	386	11
387	387	12
388	388	13
389	389	14
390	390	15
391	391	16
392	392	17
393	393	18
394	394	19
395	395	20
396	396	21
397	397	22
398	398	23
399	399	24
400	400	25
401	401	26
402	402	27
403	403	28
404	404	29
405	405	30
406	406	31
407	407	32
408	408	33
409	409	34
410	410	35
411	411	36
412	412	37
413	413	38
414	414	39
415	415	40
416	416	41
417	417	42
418	418	43 SB 171 6
419	419	cannabis regulatory commission, as established in rules and regulations
420	420	adopted by the cannabis regulatory commission.
421	421	(2) (A) No individual shall concurrently have an ownership interest in
422	422	a medical cannabis grower-distributor and a medical cannabis dispensary.
423	423	(B) No member of the legislature shall have an ownership interest in
424	424	a medical cannabis grower-distributor.
425	425	(C) No individual who is not in current compliance with any Kansas
426	426	tax law administered by the director of taxation of the department of
427	427	revenue, any tax, fee or payment administered by the department of labor
428	428	or any fee or charge administered by any other state agency shall have an
429	429	ownership interest in a medical cannabis grower-distributor.
430	430	(D) No individual shall concurrently have an ownership interest in
431	431	more than one medical cannabis grower-distributor.
432	432	(b) An applicant shall provide the following information and
433	433	documentation on an application for licensure as a medical cannabis
434	434	grower-distributor:
435	435	(1) The name, address and telephone number of the applicant;
436	436	(2) the physical location of any premises that will be operated as a
437	437	part of the medical cannabis grower-distributor operations;
438	438	(3) documentation that the applicant is a resident of the state of
439	439	Kansas;
440	440	(4) the name of each owner of any land, structure or building where
441	441	any operations of the medical cannabis grower-distributor will occur or
442	442	any motor vehicle that will be used to distribute or transport cannabis or
443	443	medical cannabis consumer products and each individual who will
444	444	otherwise be involved with the medical cannabis grower-distributor's
445	445	operations, whether as an employee or agent; and
446	446	(5) any other information required by the cannabis regulatory
447	447	commission.
448	448	(c) (1) Each individual working as an employee or agent of a medical
449	449	cannabis grower-distributor shall apply for an initial or renewed permit to
450	450	engage in such work on a form, in a manner and accompanied by an initial
451	451	or renewal permit fee not to exceed $100 prescribed by the cannabis
452	452	regulatory commission.
453	453	(2) The cannabis regulatory commission shall require any person
454	454	working as an employee or agent of a medical cannabis grower-distributor
455	455	to be fingerprinted and to submit to a state and national criminal history
456	456	record check. The department is authorized to submit the fingerprints to
457	457	the Kansas bureau of investigation and the federal bureau of investigation
458	458	for a state and national criminal history record check. The department shall
459	459	use the information obtained from fingerprinting and the state and national
460	460	criminal history record check for purposes of verifying the identification
461	461	of the person and for making a determination of the qualifications and
462	462	1
463	463	2
464	464	3
465	465	4
466	466	5
467	467	6
468	468	7
469	469	8
470	470	9
471	471	10
472	472	11
473	473	12
474	474	13
475	475	14
476	476	15
477	477	16
478	478	17
479	479	18
480	480	19
481	481	20
482	482	21
483	483	22
484	484	23
485	485	24
486	486	25
487	487	26
488	488	27
489	489	28
490	490	29
491	491	30
492	492	31
493	493	32
494	494	33
495	495	34
496	496	35
497	497	36
498	498	37
499	499	38
500	500	39
501	501	40
502	502	41
503	503	42
504	504	43 SB 171 7
505	505	fitness of the person to work as an employee or agent of the medical
506	506	cannabis grower-distributor.
507	507	(3) The Kansas bureau of investigation may charge a reasonable fee
508	508	to the applicant for fingerprinting and conducting a criminal history record
509	509	check.
510	510	(4) As a condition of licensure as a medical cannabis grower-
511	511	distributor, the cannabis regulatory commission shall disqualify any person
512	512	from working as an employee or agent of a medical cannabis grower-
513	513	distributor if the person has been convicted of any felony violation of
514	514	article 57 of chapter 21 of the Kansas Statutes Annotated, and amendments
515	515	thereto, or K.S.A. 2010 Supp. 21-36a01 through 21-36a17, prior to their
516	516	transfer, any felony violation of the uniform controlled substances act prior
517	517	to July 1, 2009, or similar provisions of any other state or the federal
518	518	government.
519	519	(d) Within 60 calendar days of receiving any application pursuant to
520	520	this section, the cannabis regulatory commission shall issue a decision to
521	521	grant or deny licensure to the applicant as a medical cannabis grower-
522	522	distributor.
523	523	(e) If the cannabis regulatory commission denies initial or renewed
524	524	licensure to a medical cannabis grower-distributor, the cannabis regulatory
525	525	commission shall refund
526	526	1
527	527	/2 of the applicant's application fee or renewal
528	528	fee.
529	529	(f) Licensure as a medical cannabis grower-distributor shall be
530	530	effective for a period of two years. If the cannabis regulatory commission
531	531	grants initial or renewed licensure to a medical cannabis grower-
532	532	distributor, the cannabis regulatory commission shall require the applicant
533	533	or licensee to:
534	534	(1) Pay a licensure fee not to exceed $90,000; and
535	535	(2) provide satisfactory evidence that the medical cannabis grower-
536	536	distributor has obtained a surety bond in an amount required by the
537	537	cannabis regulatory commission based on the size and actual and projected
538	538	yield of the medical cannabis grower-distributor operations, the number of
539	539	facilities operated by the medical cannabis grower-distributor and other
540	540	factors established by the cannabis regulatory commission in rules and
541	541	regulations.
542	542	(g) The cannabis regulatory commission shall remit all moneys from
543	543	any fees under this section to the state treasurer in accordance with K.S.A.
544	544	75-4215, and amendments thereto. Upon receipt of each such remittance,
545	545	the state treasurer shall deposit the entire amount of moneys into the state
546	546	treasury to the credit of the medical cannabis harvest fund created by
547	547	section 9, and amendments thereto.
548	548	(h) All actions by the cannabis regulatory commission under this
549	549	section shall be in accordance with the Kansas administrative procedure
550	550	1
551	551	2
552	552	3
553	553	4
554	554	5
555	555	6
556	556	7
557	557	8
558	558	9
559	559	10
560	560	11
561	561	12
562	562	13
563	563	14
564	564	15
565	565	16
566	566	17
567	567	18
568	568	19
569	569	20
570	570	21
571	571	22
572	572	23
573	573	24
574	574	25
575	575	26
576	576	27
577	577	28
578	578	29
579	579	30
580	580	31
581	581	32
582	582	33
583	583	34
584	584	35
585	585	36
586	586	37
587	587	38
588	588	39
589	589	40
590	590	41
591	591	42
592	592	43 SB 171 8
593	593	act and reviewable in accordance with the Kansas judicial review act.
594	594	New Sec. 5. (a) The cannabis regulatory commission shall adopt rules
595	595	and regulations:
596	596	(1) Requiring that cannabis and dried cannabis leaves and flowers be
597	597	tested by an independent laboratory prior to sale or other transfer to a
598	598	medical cannabis dispensary;
599	599	(2) establishing standards and procedures for testing cannabis and
600	600	dried cannabis leaves;
601	601	(3) establishing standards for approving an independent laboratory to
602	602	conduct testing required by this subsection; and
603	603	(4) identifying appropriate tests for cannabis and dried cannabis
604	604	leaves and flowers that are necessary to protect the public health and
605	605	safety, including, but not limited to, tests for: Microbiological
606	606	contaminants; pesticides; other contaminants; solvents or residual solvents;
607	607	and concentration of tetrahydrocannabinol and cannabidiol.
608	608	(b) (1) Each medical cannabis grower-distributor shall make a
609	609	monthly report to the cannabis regulatory commission under oath, on a
610	610	form and in a manner prescribed by the cannabis regulatory commission
611	611	detailing the amount of cannabis cultivated, the amount of medical
612	612	cannabis consumer product sold or otherwise transferred to a medical
613	613	cannabis dispensary, the amount of any cannabis or medical cannabis
614	614	consumer product destroyed during the immediately preceding month and
615	615	any other information required by the cannabis regulatory commission.
616	616	(2) On or before July 1, 2024, the cannabis regulatory commission
617	617	shall adopt rules and regulations establishing requirements to submit a
618	618	report required by this subsection and procedures for the cannabis
619	619	regulatory commission to verify the reported information.
620	620	(c) The cannabis regulatory commission shall adopt rules and
621	621	regulations as necessary to implement and administer the provisions of this
622	622	section, including, but not limited to:
623	623	(1) Standards and requirements for appropriate inventory reporting
624	624	and management and security measures for all operations of any medical
625	625	cannabis grower-distributor;
626	626	(2) minimum and maximum concentrations of tetrahydrocannabinol
627	627	and cannabidiol in cannabis and medical cannabis consumer products for
628	628	use in accordance with the veterans first medical cannabis act; and
629	629	(3) requirements that proof of licensure, testing results or related
630	630	certifications are possessed by an individual working as an employee or
631	631	agent of a medical cannabis grower-distributor at all times when engaged
632	632	in any acts authorized by the veterans first medical cannabis act.
633	633	New Sec. 6. (a) (1) An individual may apply to the state board of
634	634	pharmacy for initial or renewed licensure as a medical cannabis dispensary
635	635	on a form, in a manner and accompanied by an application fee or renewal
636	636	1
637	637	2
638	638	3
639	639	4
640	640	5
641	641	6
642	642	7
643	643	8
644	644	9
645	645	10
646	646	11
647	647	12
648	648	13
649	649	14
650	650	15
651	651	16
652	652	17
653	653	18
654	654	19
655	655	20
656	656	21
657	657	22
658	658	23
659	659	24
660	660	25
661	661	26
662	662	27
663	663	28
664	664	29
665	665	30
666	666	31
667	667	32
668	668	33
669	669	34
670	670	35
671	671	36
672	672	37
673	673	38
674	674	39
675	675	40
676	676	41
677	677	42
678	678	43 SB 171 9
679	679	application fee or renewal fee not to exceed $5,000 prescribed by the state
680	680	board of pharmacy.
681	681	(2) (A) No individual shall concurrently have an ownership interest in
682	682	a medical cannabis harvester facility and a medical cannabis dispensary.
683	683	(B) No member of the legislature shall have an ownership interest in
684	684	a medical cannabis dispensary.
685	685	(C) No individual who is not in current compliance with any Kansas
686	686	tax law administered by the director of taxation of the department of
687	687	revenue, any tax, fee or payment administered by the department of labor
688	688	or any fee or charge administered by any other state agency shall have an
689	689	ownership interest in a medical cannabis grower-distributor.
690	690	(D) No individual shall concurrently have an ownership interest in
691	691	more than two medical cannabis dispensaries.
692	692	(b) An applicant shall provide the following information and
693	693	documentation on an application for licensure as a medical cannabis
694	694	dispensary:
695	695	(1) The name, address and telephone number of the applicant;
696	696	(2) the physical location of any premises that will be operated as a
697	697	facility for the medical cannabis dispensary's operations;
698	698	(3) documentation that the applicant is a resident of the state of
699	699	Kansas;
700	700	(4) the name of each owner of any land, structure or building where
701	701	any operations of the medical cannabis dispensary will occur and each
702	702	individual who will otherwise be involved with the medical cannabis
703	703	dispensary's operations, whether as an employee or agent; and
704	704	(5) any other information required by the state board of pharmacy.
705	705	(c) (1) Each individual working as an employee or agent of a medical
706	706	cannabis dispensary shall apply for an initial or renewed permit to engage
707	707	in such work on a form, in a manner and accompanied by an initial or
708	708	renewal permit fee not to exceed $100 prescribed by the state board of
709	709	pharmacy.
710	710	(2) The state board of pharmacy shall require any person working as
711	711	an employee or agent of a medical cannabis dispensary to be fingerprinted
712	712	and to submit to a state and national criminal history record check. The
713	713	state board of pharmacy is authorized to submit the fingerprints to the
714	714	Kansas bureau of investigation and the federal bureau of investigation for
715	715	a state and national criminal history record check. The board shall use the
716	716	information obtained from fingerprinting and the state and national
717	717	criminal history record check for purposes of verifying the identification
718	718	of the person and for making a determination of the qualifications and
719	719	fitness of the person to work in the medical cannabis dispensary.
720	720	(3) The Kansas bureau of investigation may charge a reasonable fee
721	721	to the applicant for fingerprinting and conducting a criminal history record
722	722	1
723	723	2
724	724	3
725	725	4
726	726	5
727	727	6
728	728	7
729	729	8
730	730	9
731	731	10
732	732	11
733	733	12
734	734	13
735	735	14
736	736	15
737	737	16
738	738	17
739	739	18
740	740	19
741	741	20
742	742	21
743	743	22
744	744	23
745	745	24
746	746	25
747	747	26
748	748	27
749	749	28
750	750	29
751	751	30
752	752	31
753	753	32
754	754	33
755	755	34
756	756	35
757	757	36
758	758	37
759	759	38
760	760	39
761	761	40
762	762	41
763	763	42
764	764	43 SB 171 10
765	765	check.
766	766	(4) As a condition of licensure as a medical cannabis dispensary, the
767	767	state board of pharmacy shall disqualify any person from working in such
768	768	medical cannabis dispensary if the person has been convicted of any
769	769	felony violation of article 57 of chapter 21 of the Kansas Statutes
770	770	Annotated, and amendments thereto, or K.S.A. 2010 Supp. 21-36a01
771	771	through 21-36a17, prior to their transfer, any felony violation of the
772	772	uniform controlled substances act prior to July 1, 2009, or similar
773	773	provisions of any other state or the federal government.
774	774	(d) Within 60 calendar days of receiving any application pursuant to
775	775	this section, the state board of pharmacy shall issue a decision to grant or
776	776	deny licensure to the medical cannabis dispensary.
777	777	(e) If the state board of pharmacy denies initial or renewed licensure
778	778	to a medical cannabis dispensary, the state board of pharmacy shall refund
779	779	1
780	780	/2 of the applicant's or licensee's application fee.
781	781	(f) Licensure as a medical cannabis dispensary shall be effective for a
782	782	period of two years. If the state board of pharmacy grants initial or
783	783	renewed licensure to a medical cannabis dispensary, the state board of
784	784	pharmacy shall require the applicant or licensee to:
785	785	(1) Pay a licensure fee not to exceed $30,000; and
786	786	(2) provide satisfactory evidence that the medical cannabis dispensary
787	787	has obtained a surety bond in an amount determined by the Kansas
788	788	department of agriculture based on the size and actual and projected
789	789	amounts of inventory held and sold by the medical cannabis dispensary
790	790	and the number of facilities operated by the medical cannabis dispensary.
791	791	(g) The state board of pharmacy shall remit all moneys from any fees
792	792	under this section to the state treasurer in accordance with K.S.A. 75-4215,
793	793	and amendments thereto. Upon receipt of each such remittance, the state
794	794	treasurer shall deposit the entire amount of moneys into the state treasury
795	795	to the credit of the medical cannabis dispensary fund created by section 10,
796	796	and amendments thereto.
797	797	(h) All actions by the state board of pharmacy under this section shall
798	798	be in accordance with the Kansas administrative procedure act and
799	799	reviewable in accordance with the Kansas judicial review act.
800	800	New Sec. 7. (a) (1) Each medical cannabis dispensary shall make a
801	801	monthly report to the state board of pharmacy under oath and on a form
802	802	and in a manner prescribed by the state board of pharmacy detailing the
803	803	amount of cannabis bought or otherwise transferred from a medical
804	804	cannabis grower-distributor, the amount of medical cannabis consumer
805	805	product sold to any qualified patient, the amount of any medical cannabis
806	806	consumer product destroyed during the immediately preceding month and
807	807	any other information required by the cannabis regulatory commission.
808	808	(2) The state board of pharmacy shall adopt rules and regulations
809	809	1
810	810	2
811	811	3
812	812	4
813	813	5
814	814	6
815	815	7
816	816	8
817	817	9
818	818	10
819	819	11
820	820	12
821	821	13
822	822	14
823	823	15
824	824	16
825	825	17
826	826	18
827	827	19
828	828	20
829	829	21
830	830	22
831	831	23
832	832	24
833	833	25
834	834	26
835	835	27
836	836	28
837	837	29
838	838	30
839	839	31
840	840	32
841	841	33
842	842	34
843	843	35
844	844	36
845	845	37
846	846	38
847	847	39
848	848	40
849	849	41
850	850	42
851	851	43 SB 171 11
852	852	establishing requirements to submit a report required by this subsection
853	853	and procedures for the state board of pharmacy to verify the reported
854	854	information.
855	855	(b) The state board of pharmacy shall adopt rules and regulations as
856	856	necessary to implement and administer the provisions of the veterans first
857	857	medical cannabis act, including, but not limited to:
858	858	(1) Standards and requirements for appropriate inventory reporting
859	859	and management and security measures for all operations of any medical
860	860	cannabis distributor; and
861	861	(2) requirements that proof of licensure, testing results or related
862	862	certifications are possessed by an individual working as an employee or
863	863	agent of a medical cannabis dispensary at all times when engaged in any
864	864	acts authorized by the veterans first medical cannabis act.
865	865	New Sec. 8. A patient identification card, or its equivalent, that is
866	866	issued under the laws of another state, district, territory, commonwealth or
867	867	insular possession of the United States that is verifiable by the jurisdiction
868	868	of issuance and allows a nonresident patient to purchase and possess
869	869	medical cannabis for medical purposes shall have the same force and
870	870	effect as an identification card issued by the department pursuant to this
871	871	act if the nonresident patient has not been residing in this state for more
872	872	than 180 days.
873	873	New Sec. 9. (a) A tax is hereby imposed upon the privilege of
874	874	growing and harvesting medical cannabis in the state of Kansas at a rate of
875	875	$115 per pound or each portion of a pound. For purposes of calculating the
876	876	tax, the weight shall be measured by the weight of all medical cannabis
877	877	plant material harvested after drying and processing.
878	878	(b) The secretary of agriculture shall adopt rules and regulations to
879	879	uniformly and efficiently administer the weighing of harvested cannabis
880	880	for purposes of this section.
881	881	(c) On or before the 20
882	882	th
883	883	day of each calendar month every medical
884	884	cannabis grower-distributor shall file a return with the director of taxation
885	885	showing the quantity of medical cannabis harvested by the medical
886	886	cannabis grower-distributor in this state during the preceding calendar
887	887	month. Each return shall be accompanied by a remittance for the full tax
888	888	liability shown.
889	889	(d) The secretary of revenue shall adopt rules and regulations to
890	890	implement the provisions of this section.
891	891	(e) The tax imposed by this section shall be in addition to the tax
892	892	imposed upon the privilege of selling or dispensing in medical cannabis
893	893	consumer products pursuant to section 10, and amendments thereto.
894	894	(f) There is hereby established in the state treasury the medical
895	895	cannabis harvest fund. The medical cannabis harvest fund shall be
896	896	administered by the department of revenue. All expenditures from the
897	897	1
898	898	2
899	899	3
900	900	4
901	901	5
902	902	6
903	903	7
904	904	8
905	905	9
906	906	10
907	907	11
908	908	12
909	909	13
910	910	14
911	911	15
912	912	16
913	913	17
914	914	18
915	915	19
916	916	20
917	917	21
918	918	22
919	919	23
920	920	24
921	921	25
922	922	26
923	923	27
924	924	28
925	925	29
926	926	30
927	927	31
928	928	32
929	929	33
930	930	34
931	931	35
932	932	36
933	933	37
934	934	38
935	935	39
936	936	40
937	937	41
938	938	42
939	939	43 SB 171 12
940	940	medical cannabis harvest fund shall be used for costs related to medical
941	941	cannabis regulation, taxation and enforcement by the department of
942	942	revenue. All expenditures from the medical cannabis harvest fund shall be
943	943	made in accordance with appropriation acts upon warrants of the director
944	944	of accounts and reports issued pursuant to vouchers approved by the
945	945	director of taxation or the designee of the director. All moneys received by
946	946	the director or the designee of the director from taxes imposed by this
947	947	section shall be deposited in the state treasury in accordance with the
948	948	provisions of K.S.A. 75-4215, and amendments thereto, and shall be
949	949	credited to the medical cannabis harvest fund.
950	950	New Sec. 10. (a) A tax is hereby imposed upon the privilege of
951	951	selling or dispensing in medical cannabis consumer products in this state
952	952	by any duly licensed medical cannabis dispensary, at the rate of $3.00 per
953	953	ounce of such products and a proportionate tax at the like rate on all
954	954	fractional parts thereof. Such tax shall be imposed at the earliest time the
955	955	dispensary: (1) Makes, manufactures or processes medical cannabis
956	956	consumer products in this state; (2) packages medical cannabis consumer
957	957	products in this state; or (3) sells medical cannabis consumer products to
958	958	consumers within this state.
959	959	(b) On or before the 20
960	960	th
961	961	day of each calendar month every medical
962	962	cannabis dispensary shall file a return with the director of taxation
963	963	showing the quantity of medical cannabis consumer product: (1) Made,
964	964	manufactured or processed in this state for sale in this state; (2) packaged
965	965	in this state for sale in this state; or (3) sold to consumers within this state
966	966	during the preceding calendar month. Each return shall be accompanied by
967	967	a remittance for the full tax liability shown.
968	968	(c) The secretary of revenue shall adopt rules and regulations as
969	969	necessary to implement and administer the provisions of this section.
970	970	(d) There is hereby established in the state treasury the medical
971	971	cannabis dispensary fund. The medical cannabis dispensary fund shall be
972	972	administered by the state board of pharmacy. All expenditures from the
973	973	medical cannabis dispensary fund shall be used for costs related to medical
974	974	cannabis regulation and enforcement by the board of pharmacy. All
975	975	expenditures from the medical cannabis harvesting fund shall be made in
976	976	accordance with appropriation acts upon warrants of the director of
977	977	accounts and reports issued pursuant to vouchers approved by the
978	978	president of the state board of pharmacy or the president's designee. All
979	979	moneys received by the director or the designee of the director from taxes
980	980	imposed by this section shall be deposited in the state treasury in
981	981	accordance with the provisions of K.S.A. 75-4215, and amendments
982	982	thereto, and shall be credited to the medical cannabis dispensary fund.
983	983	New Sec. 11. The director of taxation shall have the power to require
984	984	any medical cannabis grower-distributor or medical cannabis dispensary to
985	985	1
986	986	2
987	987	3
988	988	4
989	989	5
990	990	6
991	991	7
992	992	8
993	993	9
994	994	10
995	995	11
996	996	12
997	997	13
998	998	14
999	999	15
1000	1000	16
1001	1001	17
1002	1002	18
1003	1003	19
1004	1004	20
1005	1005	21
1006	1006	22
1007	1007	23
1008	1008	24
1009	1009	25
1010	1010	26
1011	1011	27
1012	1012	28
1013	1013	29
1014	1014	30
1015	1015	31
1016	1016	32
1017	1017	33
1018	1018	34
1019	1019	35
1020	1020	36
1021	1021	37
1022	1022	38
1023	1023	39
1024	1024	40
1025	1025	41
1026	1026	42
1027	1027	43 SB 171 13
1028	1028	furnish additional information deemed necessary for the purpose of
1029	1029	computing the amount of the taxes due pursuant to this act, and for such
1030	1030	purpose to examine all books, records and files of such persons or entities,
1031	1031	and for such purpose, the director shall have the power to issue subpoenas
1032	1032	and examine witnesses under oath, and if any witness shall fail or refuse to
1033	1033	appear at the request of the director, or refuse access to books, records and
1034	1034	files, the district court of the proper county, or the judge thereof, on
1035	1035	application of the director, shall compel obedience by proceedings for
1036	1036	contempt, as in the case of disobedience of the requirements of a subpoena
1037	1037	issued from such court or a refusal to testify therein.
1038	1038	New Sec. 12. The provisions of K.S.A. 75-5133, 79-3610, 79-3611,
1039	1039	79-3612, 79-3613, 79-3615 and 79-3617, and amendments thereto,
1040	1040	relating to the assessment, collection, appeal and administration of the
1041	1041	retailers' sales tax, insofar as practical, shall have full force and effect with
1042	1042	respect to taxes, penalties and fines imposed by sections 9 and 10, and
1043	1043	amendments thereto.
1044	1044	New Sec. 13. (a) There is hereby established the cannabis regulatory
1045	1045	commission within the Kansas department of revenue. The cannabis
1046	1046	regulatory commission shall be administered under the direction of a
1047	1047	director of the cannabis regulatory commission, who shall be appointed by
1048	1048	and serve at the pleasure of the secretary of revenue. The director shall be
1049	1049	in the unclassified service under the Kansas civil service act and shall
1050	1050	receive an annual salary fixed by the secretary of revenue and approved by
1051	1051	the governor.
1052	1052	(b) The director of the cannabis regulatory commission shall be
1053	1053	responsible for all powers, duties and functions assigned to the department
1054	1054	of revenue under the veterans first medical cannabis act.
1055	1055	(c) The cannabis regulatory commission shall adopt rules and
1056	1056	regulations as necessary to implement and administer the provisions of the
1057	1057	veterans first medical cannabis act and may advise and consult with the
1058	1058	department of health and environment and the state board of pharmacy
1059	1059	regarding such rules and regulations.
1060	1060	(d) (1) The cannabis regulatory commission shall establish an
1061	1061	electronic database to store information detailing:
1062	1062	(A) Each license issued to any individual in accordance with the
1063	1063	veterans first medical cannabis act, including any modification, revocation,
1064	1064	suspension or other action relating to the license;
1065	1065	(B) each individual issued a patient identification card or caregiver
1066	1066	identification card in accordance with section 3, and amendments thereto;
1067	1067	(C) each individual working as an employee or agent of a medical
1068	1068	cannabis grower-distributor in accordance with section 4, and amendments
1069	1069	thereto, or medical cannabis dispensary in accordance with section 6, and
1070	1070	amendments thereto; and
1071	1071	1
1072	1072	2
1073	1073	3
1074	1074	4
1075	1075	5
1076	1076	6
1077	1077	7
1078	1078	8
1079	1079	9
1080	1080	10
1081	1081	11
1082	1082	12
1083	1083	13
1084	1084	14
1085	1085	15
1086	1086	16
1087	1087	17
1088	1088	18
1089	1089	19
1090	1090	20
1091	1091	21
1092	1092	22
1093	1093	23
1094	1094	24
1095	1095	25
1096	1096	26
1097	1097	27
1098	1098	28
1099	1099	29
1100	1100	30
1101	1101	31
1102	1102	32
1103	1103	33
1104	1104	34
1105	1105	35
1106	1106	36
1107	1107	37
1108	1108	38
1109	1109	39
1110	1110	40
1111	1111	41
1112	1112	42
1113	1113	43 SB 171 14
1114	1114	(D) other information deemed necessary or appropriate by the
1115	1115	director of the cannabis regulatory commission.
1116	1116	(2) Information in the database shall be shared with law enforcement
1117	1117	authorities in a manner prescribed by the Kansas bureau of investigation
1118	1118	for the purpose of verifying the validity of any identification card or
1119	1119	license issued in accordance with the veterans first medical cannabis act or
1120	1120	the location of any operations authorized by the veterans first medical
1121	1121	cannabis act.
1122	1122	New Sec. 14. (a) There is hereby established the medical cannabis
1123	1123	implementation task force. The medical cannabis implementation task
1124	1124	force shall submit a report to the governor and the legislature each year on
1125	1125	or before the first day of the regular session of the legislature, including
1126	1126	information about the implementation of the veterans first medical
1127	1127	cannabis act and recommendations related thereto.
1128	1128	(b) The medical cannabis implementation task force shall consist of
1129	1129	the following members:
1130	1130	(1) One member appointed by the speaker of the house of
1131	1131	representatives;
1132	1132	(2) one member appointed by the minority leader of the house of
1133	1133	representatives;
1134	1134	(3) one member appointed by the president of the senate;
1135	1135	(4) one member appointed by the minority leader of the senate;
1136	1136	(5) one member appointed by the secretary of health and
1137	1137	environment;
1138	1138	(6) one member appointed by the secretary of agriculture;
1139	1139	(7) one member appointed by the state board of pharmacy;
1140	1140	(8) one member appointed by the secretary of revenue; and
1141	1141	(9) one member appointed by the attorney general.
1142	1142	New Sec. 15. (a) (1) Any individual who is issued a valid, unrevoked
1143	1143	and unexpired license or identification card who is acting in compliance
1144	1144	with the veterans first medical cannabis act shall be immune from criminal
1145	1145	prosecution of any state law, city ordinance or county resolution involving
1146	1146	cannabis or medical cannabis consumer products. Any individual may be
1147	1147	prosecuted for acts not authorized by the veterans first medical cannabis
1148	1148	act.
1149	1149	(2) Where circumstances involve cultivation, manufacture or
1150	1150	distribution of cannabis or medical cannabis consumer products by the
1151	1151	individual, the department of revenue must have issued a license
1152	1152	authorizing such cultivation, manufacture or distribution of cannabis or
1153	1153	medical cannabis consumer products in accordance with section 4, and
1154	1154	amendments thereto, for the individual to be immune from criminal
1155	1155	prosecution under this section.
1156	1156	(3) Where circumstances involve possession of medical cannabis
1157	1157	1
1158	1158	2
1159	1159	3
1160	1160	4
1161	1161	5
1162	1162	6
1163	1163	7
1164	1164	8
1165	1165	9
1166	1166	10
1167	1167	11
1168	1168	12
1169	1169	13
1170	1170	14
1171	1171	15
1172	1172	16
1173	1173	17
1174	1174	18
1175	1175	19
1176	1176	20
1177	1177	21
1178	1178	22
1179	1179	23
1180	1180	24
1181	1181	25
1182	1182	26
1183	1183	27
1184	1184	28
1185	1185	29
1186	1186	30
1187	1187	31
1188	1188	32
1189	1189	33
1190	1190	34
1191	1191	35
1192	1192	36
1193	1193	37
1194	1194	38
1195	1195	39
1196	1196	40
1197	1197	41
1198	1198	42
1199	1199	43 SB 171 15
1200	1200	consumer products, the department of health and environment must have
1201	1201	issued a patient identification card or caregiver identification card, the
1202	1202	department of revenue must have issued a license for a medical cannabis
1203	1203	grower-distributor or the state board of pharmacy must have issued a
1204	1204	license for a medical cannabis dispensary authorizing such possession in
1205	1205	accordance with the veterans first medical cannabis act for the individual
1206	1206	to be immune from criminal prosecution under this section.
1207	1207	(4) As used in this subsection, "criminal prosecution" includes arrest,
1208	1208	detention in custody or charging or prosecution of the individual.
1209	1209	(b) (1) The mere possession of cannabis or medical cannabis
1210	1210	consumer products or a positive test result from a test indicating only the
1211	1211	presence of tetrahydrocannabinol by an individual authorized and issued a
1212	1212	patient identification card, caregiver identification card, medical cannabis
1213	1213	grower-distributor license or medical cannabis dispensary license in
1214	1214	accordance with the veterans first medical cannabis act shall not, in the
1215	1215	absence of other facts or circumstances, constitute probable cause for
1216	1216	arrest for possession of a controlled substance prohibited by state law, city
1217	1217	ordinance or county resolution, if the individual has a valid, unrevoked and
1218	1218	unexpired patient identification card, caregiver identification card, medical
1219	1219	cannabis grower-distributor license or medical cannabis dispensary license
1220	1220	in the individual's possession.
1221	1221	(2) As used in this subsection, "other facts or circumstances" include,
1222	1222	but are not limited to, quantity, method of packaging or labeling,
1223	1223	statements by the individual in possession or other information leading a
1224	1224	reasonable law enforcement officer to believe the acts involving cannabis
1225	1225	or medical cannabis consumer products are not in accordance with the
1226	1226	veterans first medical cannabis act.
1227	1227	(3) Absent an arrest, a law enforcement officer, with reasonable
1228	1228	suspicion that the substance is not possessed or used in accordance with
1229	1229	the veterans first medical cannabis act, may seize a portion of the
1230	1230	substance adequate for further testing.
1231	1231	(c) This section shall be part of and supplemental to article 57 of
1232	1232	chapter 21 of the Kansas Statutes Annotated, and amendments thereto.
1233	1233	Sec. 16. K.S.A. 2022 Supp. 21-5703 is hereby amended to read as
1234	1234	follows: 21-5703. (a) It shall be unlawful for any person to manufacture
1235	1235	any controlled substance or controlled substance analog.
1236	1236	(b) Violation or attempted violation of subsection (a) is a:
1237	1237	(1) Drug severity level 2 felony, except as provided in subsections (b)
1238	1238	(2) and (b)(3);
1239	1239	(2) drug severity level 1 felony if:
1240	1240	(A) The controlled substance is not methamphetamine, as defined by
1241	1241	subsection (d)(3) or (f)(1) of K.S.A. 65-4107(d)(3) or (f)(1), and
1242	1242	amendments thereto, or an analog thereof; and
1243	1243	1
1244	1244	2
1245	1245	3
1246	1246	4
1247	1247	5
1248	1248	6
1249	1249	7
1250	1250	8
1251	1251	9
1252	1252	10
1253	1253	11
1254	1254	12
1255	1255	13
1256	1256	14
1257	1257	15
1258	1258	16
1259	1259	17
1260	1260	18
1261	1261	19
1262	1262	20
1263	1263	21
1264	1264	22
1265	1265	23
1266	1266	24
1267	1267	25
1268	1268	26
1269	1269	27
1270	1270	28
1271	1271	29
1272	1272	30
1273	1273	31
1274	1274	32
1275	1275	33
1276	1276	34
1277	1277	35
1278	1278	36
1279	1279	37
1280	1280	38
1281	1281	39
1282	1282	40
1283	1283	41
1284	1284	42
1285	1285	43 SB 171 16
1286	1286	(B) the offender has a prior conviction for unlawful manufacturing of
1287	1287	a controlled substance under this section, K.S.A. 65-4159, prior to its
1288	1288	repeal, K.S.A. 2010 Supp. 21-36a03, prior to its transfer, or a substantially
1289	1289	similar offense from another jurisdiction and the substance was not
1290	1290	methamphetamine, as defined by subsection (d)(3) or (f)(1) of K.S.A. 65-
1291	1291	4107(d)(3) or (f)(1), and amendments thereto, or an analog thereof, in any
1292	1292	such prior conviction; and
1293	1293	(3) drug severity level 1 felony if the controlled substance is
1294	1294	methamphetamine, as defined by subsection (d)(3) or (f)(1) of K.S.A. 65-
1295	1295	4107(d)(3) or (f)(1), and amendments thereto, or an analog thereof.
1296	1296	(c) The provisions of subsection (d) of K.S.A. 2022 Supp. 21-
1297	1297	5301(d), and amendments thereto, shall not apply to a violation of
1298	1298	attempting to unlawfully manufacture any controlled substance or
1299	1299	controlled substance analog pursuant to this section.
1300	1300	(d) For persons arrested and charged under this section, bail shall be
1301	1301	at least $50,000 cash or surety, and such person shall not be released upon
1302	1302	the person's own recognizance pursuant to K.S.A. 22-2802, and
1303	1303	amendments thereto, unless the court determines, on the record, that the
1304	1304	defendant is not likely to re-offend, the court imposes pretrial supervision,
1305	1305	or the defendant agrees to participate in a licensed or certified drug
1306	1306	treatment program.
1307	1307	(e) The sentence of a person who violates this section shall not be
1308	1308	subject to statutory provisions for suspended sentence, community service
1309	1309	work or probation.
1310	1310	(f) The sentence of a person who violates this section, K.S.A. 65-
1311	1311	4159, prior to its repeal, or K.S.A. 2010 Supp. 21-36a03, prior to its
1312	1312	transfer, shall not be reduced because these sections prohibit conduct
1313	1313	identical to that prohibited by K.S.A. 65-4161 or 65-4163, prior to their
1314	1314	repeal, K.S.A. 2010 Supp. 21-36a05, prior to its transfer, or K.S.A. 2022
1315	1315	Supp. 21-5705, and amendments thereto.
1316	1316	(g) The provisions of this section shall not apply to any medical
1317	1317	cannabis grower-distributor licensed by the department of revenue under
1318	1318	section 4, and amendments thereto, that is preparing medical cannabis
1319	1319	consumer products, as defined in section 2, and amendments thereto, when
1320	1320	used for acts authorized by the veterans first medical cannabis act.
1321	1321	Sec. 17. K.S.A. 2022 Supp. 21-5705 is hereby amended to read as
1322	1322	follows: 21-5705. (a) It shall be unlawful for any person to distribute or
1323	1323	possess with the intent to distribute any of the following controlled
1324	1324	substances or controlled substance analogs thereof:
1325	1325	(1) Opiates, opium or narcotic drugs, or any stimulant designated in
1326	1326	subsection (d)(1), (d)(3) or (f)(1) of K.S.A. 65-4107(d)(1), (d)(3) or (f)(1),
1327	1327	and amendments thereto;
1328	1328	(2) any depressant designated in subsection (e) of K.S.A. 65-4105(e),
1329	1329	1
1330	1330	2
1331	1331	3
1332	1332	4
1333	1333	5
1334	1334	6
1335	1335	7
1336	1336	8
1337	1337	9
1338	1338	10
1339	1339	11
1340	1340	12
1341	1341	13
1342	1342	14
1343	1343	15
1344	1344	16
1345	1345	17
1346	1346	18
1347	1347	19
1348	1348	20
1349	1349	21
1350	1350	22
1351	1351	23
1352	1352	24
1353	1353	25
1354	1354	26
1355	1355	27
1356	1356	28
1357	1357	29
1358	1358	30
1359	1359	31
1360	1360	32
1361	1361	33
1362	1362	34
1363	1363	35
1364	1364	36
1365	1365	37
1366	1366	38
1367	1367	39
1368	1368	40
1369	1369	41
1370	1370	42
1371	1371	43 SB 171 17
1372	1372	subsection (e) of K.S.A. 65-4107(e), subsection (b) or (c) of K.S.A. 65-
1373	1373	4109(b) or (c) or subsection (b) of K.S.A. 65-4111(b), and amendments
1374	1374	thereto;
1375	1375	(3) any stimulant designated in subsection (f) of K.S.A. 65-4105(f),
1376	1376	subsection (d)(2), (d)(4), (d)(5) or (f)(2) of K.S.A. 65-4107(d)(2), (d)(4),
1377	1377	(d)(5) or (f)(2) or subsection (e) of K.S.A. 65-4109(e), and amendments
1378	1378	thereto;
1379	1379	(4) any hallucinogenic drug designated in subsection (d) of K.S.A.
1380	1380	65-4105(d), subsection (g) of K.S.A. 65-4107(g) or subsection (g) of
1381	1381	K.S.A. 65-4109(g), and amendments thereto;
1382	1382	(5) any substance designated in subsection (g) of K.S.A. 65-4105(g)
1383	1383	and subsection (c), (d), (e), (f) or (g) of K.S.A. 65-4111(c), (d), (e), (f) or
1384	1384	(g), and amendments thereto;
1385	1385	(6) any anabolic steroids as defined in subsection (f) of K.S.A. 65-
1386	1386	4109(f), and amendments thereto; or
1387	1387	(7) any substance designated in subsection (h) of K.S.A. 65-4105(h),
1388	1388	and amendments thereto.
1389	1389	(b) It shall be unlawful for any person to distribute or possess with
1390	1390	the intent to distribute a controlled substance or a controlled substance
1391	1391	analog designated in K.S.A. 65-4113, and amendments thereto.
1392	1392	(c) It shall be unlawful for any person to cultivate any controlled
1393	1393	substance or controlled substance analog listed in subsection (a).
1394	1394	(d) (1) Except as provided further, violation of subsection (a) is a:
1395	1395	(A) Drug severity level 4 felony if the quantity of the material was
1396	1396	less than 3.5 grams;
1397	1397	(B) drug severity level 3 felony if the quantity of the material was at
1398	1398	least 3.5 grams but less than 100 grams;
1399	1399	(C) drug severity level 2 felony if the quantity of the material was at
1400	1400	least 100 grams but less than 1 kilogram; and
1401	1401	(D) drug severity level 1 felony if the quantity of the material was 1
1402	1402	kilogram or more.
1403	1403	(2) Violation of subsection (a) with respect to material containing any
1404	1404	quantity of marijuana, or an analog thereof, is a:
1405	1405	(A) Drug severity level 4 felony if the quantity of the material was
1406	1406	less than 25 grams;
1407	1407	(B) drug severity level 3 felony if the quantity of the material was at
1408	1408	least 25 grams but less than 450 grams;
1409	1409	(C) drug severity level 2 felony if the quantity of the material was at
1410	1410	least 450 grams but less than 30 kilograms; and
1411	1411	(D) drug severity level 1 felony if the quantity of the material was 30
1412	1412	kilograms or more.
1413	1413	(3) Violation of subsection (a) with respect to material containing any
1414	1414	quantity of heroin, as defined by subsection (c)(1) of K.S.A. 65-4105(c)
1415	1415	1
1416	1416	2
1417	1417	3
1418	1418	4
1419	1419	5
1420	1420	6
1421	1421	7
1422	1422	8
1423	1423	9
1424	1424	10
1425	1425	11
1426	1426	12
1427	1427	13
1428	1428	14
1429	1429	15
1430	1430	16
1431	1431	17
1432	1432	18
1433	1433	19
1434	1434	20
1435	1435	21
1436	1436	22
1437	1437	23
1438	1438	24
1439	1439	25
1440	1440	26
1441	1441	27
1442	1442	28
1443	1443	29
1444	1444	30
1445	1445	31
1446	1446	32
1447	1447	33
1448	1448	34
1449	1449	35
1450	1450	36
1451	1451	37
1452	1452	38
1453	1453	39
1454	1454	40
1455	1455	41
1456	1456	42
1457	1457	43 SB 171 18
1458	1458	(1), and amendments thereto, or methamphetamine, as defined by
1459	1459	subsection (d)(3) or (f)(1) of K.S.A. 65-4107(d)(3) or (f)(1), and
1460	1460	amendments thereto, or an analog thereof, is a:
1461	1461	(A) Drug severity level 4 felony if the quantity of the material was
1462	1462	less than 1 gram;
1463	1463	(B) drug severity level 3 felony if the quantity of the material was at
1464	1464	least 1 gram but less than 3.5 grams;
1465	1465	(C) drug severity level 2 felony if the quantity of the material was at
1466	1466	least 3.5 grams but less than 100 grams; and
1467	1467	(D) drug severity level 1 felony if the quantity of the material was
1468	1468	100 grams or more.
1469	1469	(4) Violation of subsection (a) with respect to material containing any
1470	1470	quantity of a controlled substance designated in K.S.A. 65-4105, 65-4107,
1471	1471	65-4109 or 65-4111, and amendments thereto, or an analog thereof,
1472	1472	distributed by dosage unit, is a:
1473	1473	(A) Drug severity level 4 felony if the number of dosage units was
1474	1474	fewer than 10;
1475	1475	(B) drug severity level 3 felony if the number of dosage units was at
1476	1476	least 10 but less than 100;
1477	1477	(C) drug severity level 2 felony if the number of dosage units was at
1478	1478	least 100 but less than 1,000; and
1479	1479	(D) drug severity level 1 felony if the number of dosage units was
1480	1480	1,000 or more.
1481	1481	(5) For any violation of subsection (a), the severity level of the
1482	1482	offense shall be increased one level if the controlled substance or
1483	1483	controlled substance analog was distributed or possessed with the intent to
1484	1484	distribute on or within 1,000 feet of any school property.
1485	1485	(6) Violation of subsection (b) is a:
1486	1486	(A) Class A person misdemeanor, except as provided in subsection
1487	1487	(d)(6)(B) subparagraph (B); and
1488	1488	(B) nondrug severity level 7, person felony if the substance was
1489	1489	distributed to or possessed with the intent to distribute to a minor.
1490	1490	(7) Violation of subsection (c) is a:
1491	1491	(A) Drug severity level 3 felony if the number of plants cultivated
1492	1492	was more than 4 but fewer than 50;
1493	1493	(B) drug severity level 2 felony if the number of plants cultivated was
1494	1494	at least 50 but fewer than 100; and
1495	1495	(C) drug severity level 1 felony if the number of plants cultivated was
1496	1496	100 or more.
1497	1497	(e) In any prosecution under this section, there shall be a rebuttable
1498	1498	presumption of an intent to distribute if any person possesses the following
1499	1499	quantities of controlled substances or analogs thereof:
1500	1500	(1) 450 grams or more of marijuana;
1501	1501	1
1502	1502	2
1503	1503	3
1504	1504	4
1505	1505	5
1506	1506	6
1507	1507	7
1508	1508	8
1509	1509	9
1510	1510	10
1511	1511	11
1512	1512	12
1513	1513	13
1514	1514	14
1515	1515	15
1516	1516	16
1517	1517	17
1518	1518	18
1519	1519	19
1520	1520	20
1521	1521	21
1522	1522	22
1523	1523	23
1524	1524	24
1525	1525	25
1526	1526	26
1527	1527	27
1528	1528	28
1529	1529	29
1530	1530	30
1531	1531	31
1532	1532	32
1533	1533	33
1534	1534	34
1535	1535	35
1536	1536	36
1537	1537	37
1538	1538	38
1539	1539	39
1540	1540	40
1541	1541	41
1542	1542	42
1543	1543	43 SB 171 19
1544	1544	(2) 3.5 grams or more of heroin or methamphetamine;
1545	1545	(3) 100 dosage units or more containing a controlled substance; or
1546	1546	(4) 100 grams or more of any other controlled substance.
1547	1547	(f) It shall not be a defense to charges arising under this section that
1548	1548	the defendant:
1549	1549	(1) Was acting in an agency relationship on behalf of any other party
1550	1550	in a transaction involving a controlled substance or controlled substance
1551	1551	analog;
1552	1552	(2) did not know the quantity of the controlled substance or
1553	1553	controlled substance analog; or
1554	1554	(3) did not know the specific controlled substance or controlled
1555	1555	substance analog contained in the material that was distributed or
1556	1556	possessed with the intent to distribute.
1557	1557	(g) The provisions of subsections (a)(4) and (5) shall not apply to:
1558	1558	(1) Any medical cannabis grower-distributor licensed by the
1559	1559	department of revenue under section 4, and amendments thereto, or any
1560	1560	employee or agent thereof, that is growing cannabis for the purpose of
1561	1561	sale to a medical cannabis dispensary as authorized by section 4, and
1562	1562	amendments thereto; or
1563	1563	(2) any medical cannabis dispensary licensed by the state board of
1564	1564	pharmacy under section 6, and amendments thereto, or any employee or
1565	1565	agent thereof, that is engaging in the transfer of medical cannabis
1566	1566	consumer products in a manner authorized by sections 6, and amendments
1567	1567	thereto.
1568	1568	(h) As used in this section:
1569	1569	(1) "Material" means the total amount of any substance, including a
1570	1570	compound or a mixture, which that contains any quantity of a controlled
1571	1571	substance or controlled substance analog.
1572	1572	(2) "Dosage unit" means a controlled substance or controlled
1573	1573	substance analog distributed or possessed with the intent to distribute as a
1574	1574	discrete unit, including but not limited to, one pill, one capsule or one
1575	1575	microdot, and not distributed by weight.
1576	1576	(A) For steroids, or controlled substances in liquid solution legally
1577	1577	manufactured for prescription use, or an analog thereof, "dosage unit"
1578	1578	means the smallest medically approved dosage unit, as determined by the
1579	1579	label, materials provided by the manufacturer, a prescribing authority,
1580	1580	licensed health care professional or other qualified health authority.
1581	1581	(B) For illegally manufactured controlled substances in liquid
1582	1582	solution, or controlled substances in liquid products not intended for
1583	1583	ingestion by human beings, or an analog thereof, "dosage unit" means 10
1584	1584	milligrams, including the liquid carrier medium, except as provided in
1585	1585	subsection (g)(2)(C).
1586	1586	(C) For lysergic acid diethylamide (LSD) in liquid form, or an analog
1587	1587	1
1588	1588	2
1589	1589	3
1590	1590	4
1591	1591	5
1592	1592	6
1593	1593	7
1594	1594	8
1595	1595	9
1596	1596	10
1597	1597	11
1598	1598	12
1599	1599	13
1600	1600	14
1601	1601	15
1602	1602	16
1603	1603	17
1604	1604	18
1605	1605	19
1606	1606	20
1607	1607	21
1608	1608	22
1609	1609	23
1610	1610	24
1611	1611	25
1612	1612	26
1613	1613	27
1614	1614	28
1615	1615	29
1616	1616	30
1617	1617	31
1618	1618	32
1619	1619	33
1620	1620	34
1621	1621	35
1622	1622	36
1623	1623	37
1624	1624	38
1625	1625	39
1626	1626	40
1627	1627	41
1628	1628	42
1629	1629	43 SB 171 20
1630	1630	thereof, a dosage unit is defined as 0.4 milligrams, including the liquid
1631	1631	medium.
1632	1632	Sec. 18. K.S.A. 2022 Supp. 21-5706 is hereby amended to read as
1633	1633	follows: 21-5706. (a) It shall be unlawful for any person to possess any
1634	1634	opiates, opium or narcotic drugs, or any stimulant designated in K.S.A. 65-
1635	1635	4107(d)(1), (d)(3) or (f)(1), and amendments thereto, or a controlled
1636	1636	substance analog thereof.
1637	1637	(b) It shall be unlawful for any person to possess any of the following
1638	1638	controlled substances or controlled substance analogs thereof:
1639	1639	(1) Any depressant designated in K.S.A. 65-4105(e), 65-4107(e), 65-
1640	1640	4109(b) or (c) or 65-4111(b), and amendments thereto;
1641	1641	(2) any stimulant designated in K.S.A. 65-4105(f), 65-4107(d)(2), (d)
1642	1642	(4), (d)(5) or (f)(2) or 65-4109(e), and amendments thereto;
1643	1643	(3) any hallucinogenic drug designated in K.S.A. 65-4105(d), 65-
1644	1644	4107(g) or 65-4109(g), and amendments thereto;
1645	1645	(4) any substance designated in K.S.A. 65-4105(g) and 65-4111(c),
1646	1646	(d), (e), (f) or (g), and amendments thereto;
1647	1647	(5) any anabolic steroids as defined in K.S.A. 65-4109(f), and
1648	1648	amendments thereto;
1649	1649	(6) any substance designated in K.S.A. 65-4113, and amendments
1650	1650	thereto; or
1651	1651	(7) any substance designated in K.S.A. 65-4105(h), and amendments
1652	1652	thereto.
1653	1653	(c) (1) Violation of subsection (a) is a drug severity level 5 felony.
1654	1654	(2) Except as provided in subsection (c)(3):
1655	1655	(A) Violation of subsection (b) is a class A nonperson misdemeanor,
1656	1656	except as provided in subparagraph (B); and
1657	1657	(B) violation of subsection (b)(1) through (b)(5) or (b)(7) is a drug
1658	1658	severity level 5 felony if that person has a prior conviction under such
1659	1659	subsection, under K.S.A. 65-4162, prior to its repeal, under a substantially
1660	1660	similar offense from another jurisdiction, or under any city ordinance or
1661	1661	county resolution for a substantially similar offense if the substance
1662	1662	involved was 3, 4-methylenedioxymethamphetamine (MDMA), marijuana
1663	1663	as designated in K.S.A. 65-4105(d), and amendments thereto, or any
1664	1664	substance designated in K.S.A. 65-4105(h), and amendments thereto, or an
1665	1665	analog thereof.
1666	1666	(3) If the substance involved is marijuana, as designated in K.S.A.
1667	1667	65-4105(d), and amendments thereto, or tetrahydrocannabinols, as
1668	1668	designated in K.S.A. 65-4105(h), and amendments thereto, violation of
1669	1669	subsection (b) is a:
1670	1670	(A) Class B nonperson misdemeanor, except as provided in
1671	1671	subparagraphs (B) and (C);
1672	1672	(B) class A nonperson misdemeanor if that person has a prior
1673	1673	1
1674	1674	2
1675	1675	3
1676	1676	4
1677	1677	5
1678	1678	6
1679	1679	7
1680	1680	8
1681	1681	9
1682	1682	10
1683	1683	11
1684	1684	12
1685	1685	13
1686	1686	14
1687	1687	15
1688	1688	16
1689	1689	17
1690	1690	18
1691	1691	19
1692	1692	20
1693	1693	21
1694	1694	22
1695	1695	23
1696	1696	24
1697	1697	25
1698	1698	26
1699	1699	27
1700	1700	28
1701	1701	29
1702	1702	30
1703	1703	31
1704	1704	32
1705	1705	33
1706	1706	34
1707	1707	35
1708	1708	36
1709	1709	37
1710	1710	38
1711	1711	39
1712	1712	40
1713	1713	41
1714	1714	42
1715	1715	43 SB 171 21
1716	1716	conviction under such subsection, under K.S.A. 65-4162, prior to its
1717	1717	repeal, under a substantially similar offense from another jurisdiction, or
1718	1718	under any city ordinance or county resolution for a substantially similar
1719	1719	offense; and
1720	1720	(C) drug severity level 5 felony if that person has two or more prior
1721	1721	convictions under such subsection, under K.S.A. 65-4162, prior to its
1722	1722	repeal, under a substantially similar offense from another jurisdiction, or
1723	1723	under any city ordinance or county resolution for a substantially similar
1724	1724	offense.
1725	1725	(d) It shall be an affirmative defense to prosecution under this section
1726	1726	arising out of a person's possession of any cannabidiol treatment
1727	1727	preparation if the person:
1728	1728	(1) Has a debilitating medical condition, as defined in K.S.A. 2022
1729	1729	Supp. 65-6235, and amendments thereto, or is the parent or guardian of a
1730	1730	minor child who has such debilitating medical condition;
1731	1731	(2) is possessing a cannabidiol treatment preparation, as defined in
1732	1732	K.S.A. 2022 Supp. 65-6235, and amendments thereto, that is being used to
1733	1733	treat such debilitating medical condition; and
1734	1734	(3) has possession of a letter, at all times while the person has
1735	1735	possession of the cannabidiol treatment preparation, that:
1736	1736	(A) Shall be shown to a law enforcement officer on such officer's
1737	1737	request;
1738	1738	(B) is dated within the preceding 15 months and signed by the
1739	1739	physician licensed to practice medicine and surgery in Kansas who
1740	1740	diagnosed the debilitating medical condition;
1741	1741	(C) is on such physician's letterhead; and
1742	1742	(D) identifies the person or the person's minor child as such
1743	1743	physician's patient and identifies the patient's debilitating medical
1744	1744	condition.
1745	1745	(e) It shall not be a defense to charges arising under this section that
1746	1746	the defendant was acting in an agency relationship on behalf of any other
1747	1747	party in a transaction involving a controlled substance or controlled
1748	1748	substance analog.
1749	1749	(f) If the substance involved is medical cannabis consumer product,
1750	1750	as defined in section 2, and amendments thereto, the provisions of
1751	1751	subsections (b) and (c) shall not apply to any person who is:
1752	1752	(1) A medical cannabis grower-distributor licensed by the Kansas
1753	1753	department of agriculture under section 4, and amendments thereto, or
1754	1754	any employee or agent thereof, whose possession is authorized by the
1755	1755	veterans first medical cannabis act;
1756	1756	(2) a medical cannabis dispensary licensed by the state board of
1757	1757	pharmacy under section 6, and amendments thereto, or any employee or
1758	1758	agent thereof, whose possession is authorized by the veterans first medical
1759	1759	1
1760	1760	2
1761	1761	3
1762	1762	4
1763	1763	5
1764	1764	6
1765	1765	7
1766	1766	8
1767	1767	9
1768	1768	10
1769	1769	11
1770	1770	12
1771	1771	13
1772	1772	14
1773	1773	15
1774	1774	16
1775	1775	17
1776	1776	18
1777	1777	19
1778	1778	20
1779	1779	21
1780	1780	22
1781	1781	23
1782	1782	24
1783	1783	25
1784	1784	26
1785	1785	27
1786	1786	28
1787	1787	29
1788	1788	30
1789	1789	31
1790	1790	32
1791	1791	33
1792	1792	34
1793	1793	35
1794	1794	36
1795	1795	37
1796	1796	38
1797	1797	39
1798	1798	40
1799	1799	41
1800	1800	42
1801	1801	43 SB 171 22
1802	1802	cannabis act;
1803	1803	(3) a patient who has been issued a patient identification card under
1804	1804	section 3, and amendments thereto, whose possession is authorized by the
1805	1805	veterans first medical cannabis act; or
1806	1806	(4) a primary caregiver who has been issued a caregiver
1807	1807	identification card under section 3, and amendments thereto, whose
1808	1808	possession is authorized by the veterans first medical cannabis act.
1809	1809	Sec. 19. K.S.A. 2022 Supp. 21-5707 is hereby amended to read as
1810	1810	follows: 21-5707. (a) It shall be unlawful for any person to knowingly or
1811	1811	intentionally use any communication facility:
1812	1812	(1) In committing, causing, or facilitating the commission of any
1813	1813	felony under K.S.A. 2022 Supp. 21-5703, 21-5705 or 21-5706, and
1814	1814	amendments thereto; or
1815	1815	(2) in any attempt to commit, any conspiracy to commit, or any
1816	1816	criminal solicitation of any felony under K.S.A. 2022 Supp. 21-5703, 21-
1817	1817	5705 or 21-5706, and amendments thereto. Each separate use of a
1818	1818	communication facility may be charged as a separate offense under this
1819	1819	subsection.
1820	1820	(b) Violation of subsection (a) is a nondrug severity level 8,
1821	1821	nonperson felony.
1822	1822	(c) The provisions of this section shall not apply to any person using
1823	1823	communication facilities solely within the scope of activities authorized by
1824	1824	the veterans first medical cannabis act.
1825	1825	(d) As used in this section, "communication facility" means any and
1826	1826	all public and private instrumentalities used or useful in the transmission
1827	1827	of writing, signs, signals, pictures or sounds of all kinds and includes
1828	1828	telephone, wire, radio, computer, computer networks, beepers, pagers and
1829	1829	all other means of communication.
1830	1830	Sec. 20. K.S.A. 2022 Supp. 21-5709 is hereby amended to read as
1831	1831	follows: 21-5709. (a) It shall be unlawful for any person to possess
1832	1832	ephedrine, pseudoephedrine, red phosphorus, lithium metal, sodium metal,
1833	1833	iodine, anhydrous ammonia, pressurized ammonia or
1834	1834	phenylpropanolamine, or their salts, isomers or salts of isomers with an
1835	1835	intent to use the product to manufacture a controlled substance.
1836	1836	(b) It shall be unlawful for any person to use or possess with intent to
1837	1837	use any drug paraphernalia to:
1838	1838	(1) Manufacture, cultivate, plant, propagate, harvest, test, analyze or
1839	1839	distribute a controlled substance; or
1840	1840	(2) store, contain, conceal, inject, ingest, inhale or otherwise
1841	1841	introduce a controlled substance into the human body.
1842	1842	(c) It shall be unlawful for any person to use or possess with intent to
1843	1843	use anhydrous ammonia or pressurized ammonia in a container not
1844	1844	approved for that chemical by the Kansas department of agriculture.
1845	1845	1
1846	1846	2
1847	1847	3
1848	1848	4
1849	1849	5
1850	1850	6
1851	1851	7
1852	1852	8
1853	1853	9
1854	1854	10
1855	1855	11
1856	1856	12
1857	1857	13
1858	1858	14
1859	1859	15
1860	1860	16
1861	1861	17
1862	1862	18
1863	1863	19
1864	1864	20
1865	1865	21
1866	1866	22
1867	1867	23
1868	1868	24
1869	1869	25
1870	1870	26
1871	1871	27
1872	1872	28
1873	1873	29
1874	1874	30
1875	1875	31
1876	1876	32
1877	1877	33
1878	1878	34
1879	1879	35
1880	1880	36
1881	1881	37
1882	1882	38
1883	1883	39
1884	1884	40
1885	1885	41
1886	1886	42
1887	1887	43 SB 171 23
1888	1888	(d) It shall be unlawful for any person to purchase, receive or
1889	1889	otherwise acquire at retail any compound, mixture or preparation
1890	1890	containing more than 3.6 grams of pseudoephedrine base or ephedrine
1891	1891	base in any single transaction or any compound, mixture or preparation
1892	1892	containing more than nine grams of pseudoephedrine base or ephedrine
1893	1893	base within any 30-day period.
1894	1894	(e) (1) Violation of subsection (a) is a drug severity level 3 felony;
1895	1895	(2) violation of subsection (b)(1) is a:
1896	1896	(A) Drug severity level 5 felony, except as provided in subsection (e)
1897	1897	(2)(B); and
1898	1898	(B) class B nonperson misdemeanor if the drug paraphernalia was
1899	1899	used to cultivate fewer than five marijuana plants;
1900	1900	(3) violation of subsection (b)(2) is a class B nonperson
1901	1901	misdemeanor;
1902	1902	(4) violation of subsection (c) is a drug severity level 5 felony; and
1903	1903	(5) violation of subsection (d) is a class A nonperson misdemeanor.
1904	1904	(f) For persons arrested and charged under subsection (a) or (c), bail
1905	1905	shall be at least $50,000 cash or surety, and such person shall not be
1906	1906	released upon the person's own recognizance pursuant to K.S.A. 22-2802,
1907	1907	and amendments thereto, unless the court determines, on the record, that
1908	1908	the defendant is not likely to reoffend, the court imposes pretrial
1909	1909	supervision or the defendant agrees to participate in a licensed or certified
1910	1910	drug treatment program.
1911	1911	(g) The provisions of subsection (b) shall not apply to any person
1912	1912	licensed or authorized by the veterans first medical cannabis act whose
1913	1913	possession of such equipment or material is used solely for the
1914	1914	administration of medical cannabis consumer products in a manner
1915	1915	authorized by the veterans first medical cannabis act.
1916	1916	Sec. 21. K.S.A. 2022 Supp. 21-5710 is hereby amended to read as
1917	1917	follows: 21-5710. (a) It shall be unlawful for any person to advertise,
1918	1918	market, label, distribute or possess with the intent to distribute:
1919	1919	(1) Any product containing ephedrine, pseudoephedrine, red
1920	1920	phosphorus, lithium metal, sodium metal, iodine, anhydrous ammonia,
1921	1921	pressurized ammonia or phenylpropanolamine or their salts, isomers or
1922	1922	salts of isomers if the person knows or reasonably should know that the
1923	1923	purchaser will use the product to manufacture a controlled substance or
1924	1924	controlled substance analog; or
1925	1925	(2) any product containing ephedrine, pseudoephedrine or
1926	1926	phenylpropanolamine, or their salts, isomers or salts of isomers for
1927	1927	indication of stimulation, mental alertness, weight loss, appetite control,
1928	1928	energy or other indications not approved pursuant to the pertinent federal
1929	1929	over-the-counter drug final monograph or tentative final monograph or
1930	1930	approved new drug application.
1931	1931	1
1932	1932	2
1933	1933	3
1934	1934	4
1935	1935	5
1936	1936	6
1937	1937	7
1938	1938	8
1939	1939	9
1940	1940	10
1941	1941	11
1942	1942	12
1943	1943	13
1944	1944	14
1945	1945	15
1946	1946	16
1947	1947	17
1948	1948	18
1949	1949	19
1950	1950	20
1951	1951	21
1952	1952	22
1953	1953	23
1954	1954	24
1955	1955	25
1956	1956	26
1957	1957	27
1958	1958	28
1959	1959	29
1960	1960	30
1961	1961	31
1962	1962	32
1963	1963	33
1964	1964	34
1965	1965	35
1966	1966	36
1967	1967	37
1968	1968	38
1969	1969	39
1970	1970	40
1971	1971	41
1972	1972	42
1973	1973	43 SB 171 24
1974	1974	(b) It shall be unlawful for any person to distribute, possess with the
1975	1975	intent to distribute or manufacture with intent to distribute any drug
1976	1976	paraphernalia, knowing or under circumstances where one reasonably
1977	1977	should know that it will be used to manufacture or distribute a controlled
1978	1978	substance or controlled substance analog in violation of K.S.A. 2022 Supp.
1979	1979	21-5701 through 21-5717, and amendments thereto.
1980	1980	(c) It shall be unlawful for any person to distribute, possess with
1981	1981	intent to distribute or manufacture with intent to distribute any drug
1982	1982	paraphernalia, knowing or under circumstances where one reasonably
1983	1983	should know, that it will be used as such in violation of K.S.A. 2022 Supp.
1984	1984	21-5701 through 21-5717, and amendments thereto, except subsection (b)
1985	1985	of K.S.A. 2022 Supp. 21-5706(b), and amendments thereto.
1986	1986	(d) It shall be unlawful for any person to distribute, possess with
1987	1987	intent to distribute or manufacture with intent to distribute any drug
1988	1988	paraphernalia, knowing, or under circumstances where one reasonably
1989	1989	should know, that it will be used as such in violation of subsection (b) of
1990	1990	K.S.A. 2022 Supp. 21-5706(b), and amendments thereto.
1991	1991	(e) (1) Violation of subsection (a) is a drug severity level 3 felony;
1992	1992	(2) violation of subsection (b) is a:
1993	1993	(A) Drug severity level 5 felony, except as provided in subsection (e)
1994	1994	(2)(B) subparagraph (B); and
1995	1995	(B) drug severity level 4 felony if the trier of fact makes a finding that
1996	1996	the offender distributed or caused drug paraphernalia to be distributed to a
1997	1997	minor or on or within 1,000 feet of any school property;
1998	1998	(3) violation of subsection (c) is a:
1999	1999	(A) Nondrug severity level 9, nonperson felony, except as provided in
2000	2000	subsection (e)(3)(B); and
2001	2001	(B) drug severity level 5 felony if the trier of fact makes a finding that
2002	2002	the offender distributed or caused drug paraphernalia to be distributed to a
2003	2003	minor or on or within 1,000 feet of any school property; and
2004	2004	(4) violation of subsection (d) is a:
2005	2005	(A) Class A nonperson misdemeanor, except as provided in
2006	2006	subsection (e)(4)(B); and
2007	2007	(B) nondrug severity level 9, nonperson felony if the trier of fact
2008	2008	makes a finding that the offender distributed or caused drug paraphernalia
2009	2009	to be distributed to a minor or on or within 1,000 feet of any school
2010	2010	property.
2011	2011	(f) For persons arrested and charged under subsection (a), bail shall
2012	2012	be at least $50,000 cash or surety, and such person shall not be released
2013	2013	upon the person's own recognizance pursuant to K.S.A. 22-2802, and
2014	2014	amendments thereto, unless the court determines, on the record, that the
2015	2015	defendant is not likely to re-offend, the court imposes pretrial supervision
2016	2016	or the defendant agrees to participate in a licensed or certified drug
2017	2017	1
2018	2018	2
2019	2019	3
2020	2020	4
2021	2021	5
2022	2022	6
2023	2023	7
2024	2024	8
2025	2025	9
2026	2026	10
2027	2027	11
2028	2028	12
2029	2029	13
2030	2030	14
2031	2031	15
2032	2032	16
2033	2033	17
2034	2034	18
2035	2035	19
2036	2036	20
2037	2037	21
2038	2038	22
2039	2039	23
2040	2040	24
2041	2041	25
2042	2042	26
2043	2043	27
2044	2044	28
2045	2045	29
2046	2046	30
2047	2047	31
2048	2048	32
2049	2049	33
2050	2050	34
2051	2051	35
2052	2052	36
2053	2053	37
2054	2054	38
2055	2055	39
2056	2056	40
2057	2057	41
2058	2058	42
2059	2059	43 SB 171 25
2060	2060	treatment program.
2061	2061	(g) The provisions of subsection (c) shall not apply to any person
2062	2062	licensed or authorized by the veterans first medical cannabis act whose
2063	2063	distribution or manufacture is used solely for medical cannabis consumer
2064	2064	product in a manner authorized by the veterans first medical cannabis act.
2065	2065	(h) As used in this section, "or under circumstances where one
2066	2066	reasonably should know" that an item will be used in violation of this
2067	2067	section, shall include, but not be limited to, the following:
2068	2068	(1) Actual knowledge from prior experience or statements by
2069	2069	customers;
2070	2070	(2) inappropriate or impractical design for alleged legitimate use;
2071	2071	(3) receipt of packaging material, advertising information or other
2072	2072	manufacturer supplied information regarding the item's use as drug
2073	2073	paraphernalia; or
2074	2074	(4) receipt of a written warning from a law enforcement or
2075	2075	prosecutorial agency having jurisdiction that the item has been previously
2076	2076	determined to have been designed specifically for use as drug
2077	2077	paraphernalia.
2078	2078	Sec. 22. K.S.A. 2022 Supp. 65-1120 is hereby amended to read as
2079	2079	follows: 65-1120. (a) Grounds for disciplinary actions. The board may
2080	2080	deny, revoke, limit or suspend any license or authorization to practice
2081	2081	nursing as a registered professional nurse, as a licensed practical nurse, as
2082	2082	an advanced practice registered nurse or as a registered nurse anesthetist
2083	2083	that is issued by the board or applied for under this act, or may require the
2084	2084	licensee to attend a specific number of hours of continuing education in
2085	2085	addition to any hours the licensee may already be required to attend or
2086	2086	may publicly or privately censure a licensee or holder of a temporary
2087	2087	permit or authorization, if the applicant, licensee or holder of a temporary
2088	2088	permit or authorization is found after hearing:
2089	2089	(1) To be guilty of fraud or deceit in practicing nursing or in
2090	2090	procuring or attempting to procure a license to practice nursing;
2091	2091	(2) to have been guilty of a felony or to have been guilty of a
2092	2092	misdemeanor involving an illegal drug offense unless the applicant or
2093	2093	licensee establishes sufficient rehabilitation to warrant the public trust,
2094	2094	except that notwithstanding K.S.A. 74-120, and amendments thereto, no
2095	2095	license or authorization to practice nursing as a licensed professional
2096	2096	nurse, as a licensed practical nurse, as an advanced practice registered
2097	2097	nurse or registered nurse anesthetist shall be granted to a person with a
2098	2098	felony conviction for a crime against persons as specified in article 34 of
2099	2099	chapter 21 of the Kansas Statutes Annotated, prior to their repeal, or article
2100	2100	54 of chapter 21 of the Kansas Statutes Annotated, or K.S.A. 2022 Supp.
2101	2101	21-6104, 21-6325, 21-6326 or 21-6418, and amendments thereto;
2102	2102	(3) has been convicted or found guilty or has entered into an agreed
2103	2103	1
2104	2104	2
2105	2105	3
2106	2106	4
2107	2107	5
2108	2108	6
2109	2109	7
2110	2110	8
2111	2111	9
2112	2112	10
2113	2113	11
2114	2114	12
2115	2115	13
2116	2116	14
2117	2117	15
2118	2118	16
2119	2119	17
2120	2120	18
2121	2121	19
2122	2122	20
2123	2123	21
2124	2124	22
2125	2125	23
2126	2126	24
2127	2127	25
2128	2128	26
2129	2129	27
2130	2130	28
2131	2131	29
2132	2132	30
2133	2133	31
2134	2134	32
2135	2135	33
2136	2136	34
2137	2137	35
2138	2138	36
2139	2139	37
2140	2140	38
2141	2141	39
2142	2142	40
2143	2143	41
2144	2144	42
2145	2145	43 SB 171 26
2146	2146	disposition of a misdemeanor offense related to the practice of nursing as
2147	2147	determined on a case-by-case basis;
2148	2148	(4) to have committed an act of professional incompetency as defined
2149	2149	in subsection (e);
2150	2150	(5) to be unable to practice with skill and safety due to current abuse
2151	2151	of drugs or alcohol;
2152	2152	(6) to be a person who has been adjudged in need of a guardian or
2153	2153	conservator, or both, under the act for obtaining a guardian or conservator,
2154	2154	or both, and who has not been restored to capacity under that act;
2155	2155	(7) to be guilty of unprofessional conduct as defined by rules and
2156	2156	regulations of the board;
2157	2157	(8) to have willfully or repeatedly violated the provisions of the
2158	2158	Kansas nurse practice act or any rules and regulations adopted pursuant to
2159	2159	that act, including K.S.A. 65-1114 and 65-1122, and amendments thereto;
2160	2160	(9) to have a license to practice nursing as a registered nurse or as a
2161	2161	practical nurse denied, revoked, limited or suspended, or to be publicly or
2162	2162	privately censured, by a licensing authority of another state, agency of the
2163	2163	United States government, territory of the United States or country or to
2164	2164	have other disciplinary action taken against the applicant or licensee by a
2165	2165	licensing authority of another state, agency of the United States
2166	2166	government, territory of the United States or country. A certified copy of
2167	2167	the record or order of public or private censure, denial, suspension,
2168	2168	limitation, revocation or other disciplinary action of the licensing authority
2169	2169	of another state, agency of the United States government, territory of the
2170	2170	United States or country shall constitute prima facie evidence of such a
2171	2171	fact for purposes of this paragraph (9); or
2172	2172	(10) to have assisted suicide in violation of K.S.A. 21-3406, prior to
2173	2173	its repeal, or K.S.A. 2022 Supp. 21-5407, and amendments thereto, as
2174	2174	established by any of the following:
2175	2175	(A) A copy of the record of criminal conviction or plea of guilty for a
2176	2176	felony in violation of K.S.A. 21-3406, prior to its repeal, or K.S.A. 2022
2177	2177	Supp. 21-5407, and amendments thereto.
2178	2178	(B) A copy of the record of a judgment of contempt of court for
2179	2179	violating an injunction issued under K.S.A. 2022 Supp. 60-4404, and
2180	2180	amendments thereto.
2181	2181	(C) A copy of the record of a judgment assessing damages under
2182	2182	K.S.A. 2022 Supp. 60-4405, and amendments thereto.
2183	2183	(b) Proceedings. Upon filing of a sworn complaint with the board
2184	2184	charging a person with having been guilty of any of the unlawful practices
2185	2185	specified in subsection (a), two or more members of the board shall
2186	2186	investigate the charges, or the board may designate and authorize an
2187	2187	employee or employees of the board to conduct an investigation. After
2188	2188	investigation, the board may institute charges. If an investigation, in the
2189	2189	1
2190	2190	2
2191	2191	3
2192	2192	4
2193	2193	5
2194	2194	6
2195	2195	7
2196	2196	8
2197	2197	9
2198	2198	10
2199	2199	11
2200	2200	12
2201	2201	13
2202	2202	14
2203	2203	15
2204	2204	16
2205	2205	17
2206	2206	18
2207	2207	19
2208	2208	20
2209	2209	21
2210	2210	22
2211	2211	23
2212	2212	24
2213	2213	25
2214	2214	26
2215	2215	27
2216	2216	28
2217	2217	29
2218	2218	30
2219	2219	31
2220	2220	32
2221	2221	33
2222	2222	34
2223	2223	35
2224	2224	36
2225	2225	37
2226	2226	38
2227	2227	39
2228	2228	40
2229	2229	41
2230	2230	42
2231	2231	43 SB 171 27
2232	2232	opinion of the board, reveals reasonable grounds for believing the
2233	2233	applicant or licensee is guilty of the charges, the board shall fix a time and
2234	2234	place for proceedings, which that shall be conducted in accordance with
2235	2235	the provisions of the Kansas administrative procedure act.
2236	2236	(c) Witnesses. No person shall be excused from testifying in any
2237	2237	proceedings before the board under this act or in any civil proceedings
2238	2238	under this act before a court of competent jurisdiction on the ground that
2239	2239	such testimony may incriminate the person testifying, but such testimony
2240	2240	shall not be used against the person for the prosecution of any crime under
2241	2241	the laws of this state except the crime of perjury as defined in K.S.A. 2022
2242	2242	Supp. 21-5903, and amendments thereto.
2243	2243	(d) Costs. If final agency action of the board in a proceeding under
2244	2244	this section is adverse to the applicant or licensee, the costs of the board's
2245	2245	proceedings shall be charged to the applicant or licensee as in ordinary
2246	2246	civil actions in the district court, but if the board is the unsuccessful party,
2247	2247	the costs shall be paid by the board. Witness fees and costs may be taxed
2248	2248	by the board according to the statutes relating to procedure in the district
2249	2249	court. All costs accrued by the board, when it is the successful party, and
2250	2250	which that the attorney general certifies cannot be collected from the
2251	2251	applicant or licensee shall be paid from the board of nursing fee fund. All
2252	2252	moneys collected following board proceedings shall be credited in full to
2253	2253	the board of nursing fee fund.
2254	2254	(e) Professional incompetency defined. As used in this section,
2255	2255	"professional incompetency" means:
2256	2256	(1) One or more instances involving failure to adhere to the
2257	2257	applicable standard of care to a degree which that constitutes gross
2258	2258	negligence, as determined by the board;
2259	2259	(2) repeated instances involving failure to adhere to the applicable
2260	2260	standard of care to a degree which that constitutes ordinary negligence, as
2261	2261	determined by the board; or
2262	2262	(3) a pattern of practice or other behavior which that demonstrates a
2263	2263	manifest incapacity or incompetence to practice nursing.
2264	2264	(f) Criminal justice information. The board upon request shall receive
2265	2265	from the Kansas bureau of investigation such criminal history record
2266	2266	information relating to arrests and criminal convictions as necessary for
2267	2267	the purpose of determining initial and continuing qualifications of
2268	2268	licensees of and applicants for licensure by the board.
2269	2269	(g) Medical cannabis. The board shall not deny, revoke, limit or
2270	2270	suspend an advanced practice registered nurse's license or publicly or
2271	2271	privately censure an advanced practice registered nurse upon any of the
2272	2272	following:
2273	2273	(1) The advanced practice registered nurse, after diagnosing a
2274	2274	patient with a qualifying medical condition or after knowing that a patient
2275	2275	1
2276	2276	2
2277	2277	3
2278	2278	4
2279	2279	5
2280	2280	6
2281	2281	7
2282	2282	8
2283	2283	9
2284	2284	10
2285	2285	11
2286	2286	12
2287	2287	13
2288	2288	14
2289	2289	15
2290	2290	16
2291	2291	17
2292	2292	18
2293	2293	19
2294	2294	20
2295	2295	21
2296	2296	22
2297	2297	23
2298	2298	24
2299	2299	25
2300	2300	26
2301	2301	27
2302	2302	28
2303	2303	29
2304	2304	30
2305	2305	31
2306	2306	32
2307	2307	33
2308	2308	34
2309	2309	35
2310	2310	36
2311	2311	37
2312	2312	38
2313	2313	39
2314	2314	40
2315	2315	41
2316	2316	42
2317	2317	43 SB 171 28
2318	2318	has been validly diagnosed with a qualifying medical condition by a
2319	2319	healthcare provider:
2320	2320	(A) Advised the patient about the possible benefits and risks of using
2321	2321	medical cannabis consumer products;
2322	2322	(B) advised the patient that using medical cannabis consumer
2323	2323	products may mitigate the symptoms of the patient's qualifying medical
2324	2324	condition; or
2325	2325	(C) issued to the patient a valid, written certification under section 3,
2326	2326	and amendments thereto;
2327	2327	(2) the advanced practice registered nurse uses or has used medical
2328	2328	cannabis consumer products in accordance with the veterans first medical
2329	2329	cannabis act; or
2330	2330	(3) the advanced practice registered nurse acts or has acted as a
2331	2331	person's primary caregiver in accordance with the veterans first medical
2332	2332	cannabis act.
2333	2333	Sec. 23. K.S.A. 2022 Supp. 65-2836 is hereby amended to read as
2334	2334	follows: 65-2836. (a) A licensee's license may be revoked, suspended or
2335	2335	limited, or the licensee may be publicly censured or placed under
2336	2336	probationary conditions, or an application for a license or for reinstatement
2337	2337	of a license may be denied upon a finding of the existence of any of the
2338	2338	following grounds:
2339	2339	(a)(1) The licensee has committed fraud or misrepresentation in
2340	2340	applying for or securing an original, renewal or reinstated license.
2341	2341	(b)(2) The licensee has committed an act of unprofessional or
2342	2342	dishonorable conduct or professional incompetency, except that the board
2343	2343	may take appropriate disciplinary action or enter into a non-disciplinary
2344	2344	resolution when a licensee has engaged in any conduct or professional
2345	2345	practice on a single occasion that, if continued, would reasonably be
2346	2346	expected to constitute an inability to practice the healing arts with
2347	2347	reasonable skill and safety to patients or unprofessional conduct as defined
2348	2348	in K.S.A. 65-2837, and amendments thereto.
2349	2349	(c)(3) The licensee has been convicted of a felony or class A
2350	2350	misdemeanor, or substantially similar offense in another jurisdiction,
2351	2351	whether or not related to the practice of the healing arts, or the licensee has
2352	2352	been convicted in a special or general court-martial, whether or not related
2353	2353	to the practice of the healing arts. The board shall revoke a licensee's
2354	2354	license following conviction of a felony or substantially similar offense in
2355	2355	another jurisdiction, or following conviction in a general court-martial
2356	2356	occurring after July 1, 2000, unless a
2357	2357	2
2358	2358	/3 majority of the board members
2359	2359	present and voting determine by clear and convincing evidence that such
2360	2360	licensee will not pose a threat to the public in such person's capacity as a
2361	2361	licensee and that such person has been sufficiently rehabilitated to warrant
2362	2362	the public trust. In the case of a person who has been convicted of a felony
2363	2363	1
2364	2364	2
2365	2365	3
2366	2366	4
2367	2367	5
2368	2368	6
2369	2369	7
2370	2370	8
2371	2371	9
2372	2372	10
2373	2373	11
2374	2374	12
2375	2375	13
2376	2376	14
2377	2377	15
2378	2378	16
2379	2379	17
2380	2380	18
2381	2381	19
2382	2382	20
2383	2383	21
2384	2384	22
2385	2385	23
2386	2386	24
2387	2387	25
2388	2388	26
2389	2389	27
2390	2390	28
2391	2391	29
2392	2392	30
2393	2393	31
2394	2394	32
2395	2395	33
2396	2396	34
2397	2397	35
2398	2398	36
2399	2399	37
2400	2400	38
2401	2401	39
2402	2402	40
2403	2403	41
2404	2404	42
2405	2405	43 SB 171 29
2406	2406	or convicted in a general court-martial and who applies for an original
2407	2407	license or to reinstate a canceled license, the application for a license shall
2408	2408	be denied unless a
2409	2409	2
2410	2410	/3 majority of the board members present and voting on
2411	2411	such application determine by clear and convincing evidence that such
2412	2412	person will not pose a threat to the public in such person's capacity as a
2413	2413	licensee and that such person has been sufficiently rehabilitated to warrant
2414	2414	the public trust.
2415	2415	(d)(4) The licensee has used fraudulent or false advertisements.
2416	2416	(e)(5) The licensee is addicted to or has distributed intoxicating
2417	2417	liquors or drugs for any other than lawful purposes.
2418	2418	(f)(6) The licensee has willfully or repeatedly violated this act, the
2419	2419	pharmacy act of the state of Kansas or the uniform controlled substances
2420	2420	act, or any rules and regulations adopted pursuant thereto, or any rules and
2421	2421	regulations of the secretary of health and environment that are relevant to
2422	2422	the practice of the healing arts.
2423	2423	(g)(7) The licensee has unlawfully invaded the field of practice of any
2424	2424	branch of the healing arts in which the licensee is not licensed to practice.
2425	2425	(h)(8) The licensee has engaged in the practice of the healing arts
2426	2426	under a false or assumed name, or the impersonation of another
2427	2427	practitioner. The provisions of this subsection relating to an assumed name
2428	2428	shall not apply to licensees practicing under a professional corporation,
2429	2429	under a business entity that holds a certificate of authorization pursuant to
2430	2430	K.S.A. 2022 Supp. 65-28,134, and amendments thereto, or under any other
2431	2431	legal entity duly authorized to provide such professional services in the
2432	2432	state of Kansas.
2433	2433	(i)(9) The licensee's ability to practice the healing arts with
2434	2434	reasonable skill and safety to patients is impaired by reason of physical or
2435	2435	mental illness, or condition or use of alcohol, drugs or controlled
2436	2436	substances. All information, reports, findings and other records relating to
2437	2437	impairment shall be confidential and not subject to discovery by or release
2438	2438	to any person or entity outside of a board proceeding.
2439	2439	(j)(10) The licensee has had a license to practice the healing arts
2440	2440	revoked, suspended or limited, has been censured or has had other
2441	2441	disciplinary action taken, or an application for a license denied, by the
2442	2442	proper licensing authority of another state, territory, District of Columbia,
2443	2443	or other country.
2444	2444	(k)(11) The licensee has violated any lawful rule and regulation
2445	2445	promulgated by the board or violated any lawful order or directive of the
2446	2446	board previously entered by the board.
2447	2447	(l)(12) The licensee has failed to report or reveal the knowledge
2448	2448	required to be reported or revealed under K.S.A. 65-28,122, and
2449	2449	amendments thereto.
2450	2450	(m)(13) The licensee, if licensed to practice medicine and surgery,
2451	2451	1
2452	2452	2
2453	2453	3
2454	2454	4
2455	2455	5
2456	2456	6
2457	2457	7
2458	2458	8
2459	2459	9
2460	2460	10
2461	2461	11
2462	2462	12
2463	2463	13
2464	2464	14
2465	2465	15
2466	2466	16
2467	2467	17
2468	2468	18
2469	2469	19
2470	2470	20
2471	2471	21
2472	2472	22
2473	2473	23
2474	2474	24
2475	2475	25
2476	2476	26
2477	2477	27
2478	2478	28
2479	2479	29
2480	2480	30
2481	2481	31
2482	2482	32
2483	2483	33
2484	2484	34
2485	2485	35
2486	2486	36
2487	2487	37
2488	2488	38
2489	2489	39
2490	2490	40
2491	2491	41
2492	2492	42
2493	2493	43 SB 171 30
2494	2494	has failed to inform in writing a patient suffering from any form of
2495	2495	abnormality of the breast tissue for which surgery is a recommended form
2496	2496	of treatment, of alternative methods of treatment recognized by licensees
2497	2497	of the same profession in the same or similar communities as being
2498	2498	acceptable under like conditions and circumstances.
2499	2499	(n)(14) The licensee has cheated on or attempted to subvert the
2500	2500	validity of the examination for a license.
2501	2501	(o)(15) The licensee has been found to be mentally ill, disabled, not
2502	2502	guilty by reason of insanity, not guilty because the licensee suffers from a
2503	2503	mental disease or defect or incompetent to stand trial by a court of
2504	2504	competent jurisdiction.
2505	2505	(p)(16) The licensee has prescribed, sold, administered, distributed or
2506	2506	given a controlled substance to any person for other than medically
2507	2507	accepted or lawful purposes.
2508	2508	(q)(17) The licensee has violated a federal law or regulation relating
2509	2509	to controlled substances.
2510	2510	(r)(18) The licensee has failed to furnish the board, or its investigators
2511	2511	or representatives, any information legally requested by the board.
2512	2512	(s)(19) Sanctions or disciplinary actions have been taken against the
2513	2513	licensee by a peer review committee, healthcare facility, a governmental
2514	2514	agency or department or a professional association or society for acts or
2515	2515	conduct similar to acts or conduct that would constitute grounds for
2516	2516	disciplinary action under this section.
2517	2517	(t)(20) The licensee has failed to report to the board any adverse
2518	2518	action taken against the licensee by another state or licensing jurisdiction,
2519	2519	a peer review body, a healthcare facility, a professional association or
2520	2520	society, a governmental agency, by a law enforcement agency or a court
2521	2521	for acts or conduct similar to acts or conduct that would constitute grounds
2522	2522	for disciplinary action under this section.
2523	2523	(u)(21) The licensee has surrendered a license or authorization to
2524	2524	practice the healing arts in another state or jurisdiction, has surrendered the
2525	2525	authority to utilize controlled substances issued by any state or federal
2526	2526	agency, has agreed to a limitation to or restriction of privileges at any
2527	2527	medical care facility or has surrendered the licensee's membership on any
2528	2528	professional staff or in any professional association or society while under
2529	2529	investigation for acts or conduct similar to acts or conduct that would
2530	2530	constitute grounds for disciplinary action under this section.
2531	2531	(v)(22) The licensee has failed to report to the board surrender of the
2532	2532	licensee's license or authorization to practice the healing arts in another
2533	2533	state or jurisdiction or surrender of the licensee's membership on any
2534	2534	professional staff or in any professional association or society while under
2535	2535	investigation for acts or conduct similar to acts or conduct that would
2536	2536	constitute grounds for disciplinary action under this section.
2537	2537	1
2538	2538	2
2539	2539	3
2540	2540	4
2541	2541	5
2542	2542	6
2543	2543	7
2544	2544	8
2545	2545	9
2546	2546	10
2547	2547	11
2548	2548	12
2549	2549	13
2550	2550	14
2551	2551	15
2552	2552	16
2553	2553	17
2554	2554	18
2555	2555	19
2556	2556	20
2557	2557	21
2558	2558	22
2559	2559	23
2560	2560	24
2561	2561	25
2562	2562	26
2563	2563	27
2564	2564	28
2565	2565	29
2566	2566	30
2567	2567	31
2568	2568	32
2569	2569	33
2570	2570	34
2571	2571	35
2572	2572	36
2573	2573	37
2574	2574	38
2575	2575	39
2576	2576	40
2577	2577	41
2578	2578	42
2579	2579	43 SB 171 31
2580	2580	(w)(23) The licensee has an adverse judgment, award or settlement
2581	2581	against the licensee resulting from a medical liability claim related to acts
2582	2582	or conduct similar to acts or conduct that would constitute grounds for
2583	2583	disciplinary action under this section.
2584	2584	(x)(24) The licensee has failed to report to the board any adverse
2585	2585	judgment, settlement or award against the licensee resulting from a
2586	2586	medical malpractice liability claim related to acts or conduct similar to acts
2587	2587	or conduct that would constitute grounds for disciplinary action under this
2588	2588	section.
2589	2589	(y)(25) The licensee has failed to maintain a policy of professional
2590	2590	liability insurance as required by K.S.A. 40-3402 or 40-3403a, and
2591	2591	amendments thereto.
2592	2592	(z)(26) The licensee has failed to pay the premium surcharges as
2593	2593	required by K.S.A. 40-3404, and amendments thereto.
2594	2594	(aa)(27) The licensee has knowingly submitted any misleading,
2595	2595	deceptive, untrue or fraudulent representation on a claim form, bill or
2596	2596	statement.
2597	2597	(bb)(28) The licensee as the supervising physician for a physician
2598	2598	assistant has failed to adequately direct and supervise the physician
2599	2599	assistant in accordance with the physician assistant licensure act or rules
2600	2600	and regulations adopted under such act.
2601	2601	(cc)(29) The licensee has assisted suicide in violation of K.S.A. 21-
2602	2602	3406, prior to its repeal, or K.S.A. 2022 Supp. 21-5407, and amendments
2603	2603	thereto, as established by any of the following:
2604	2604	(1)(A) A copy of the record of criminal conviction or plea of guilty
2605	2605	for a felony in violation of K.S.A. 21-3406, prior to its repeal, or K.S.A.
2606	2606	2022 Supp. 21-5407, and amendments thereto.
2607	2607	(2)(B) A copy of the record of a judgment of contempt of court for
2608	2608	violating an injunction issued under K.S.A. 60-4404, and amendments
2609	2609	thereto.
2610	2610	(3)(C) A copy of the record of a judgment assessing damages under
2611	2611	K.S.A. 60-4405, and amendments thereto.
2612	2612	(dd)(30) The licensee has given a worthless check or stopped
2613	2613	payment on a debit or credit card for fees or moneys legally due to the
2614	2614	board.
2615	2615	(ee)(31) The licensee has knowingly or negligently abandoned
2616	2616	medical records.
2617	2617	(b) The board shall not revoke, suspend or limit a physician's license,
2618	2618	publicly censure a physician or place a physician's license under
2619	2619	probationary conditions upon any of the following:
2620	2620	(1) The physician, after diagnosing a patient with a qualifying
2621	2621	medical condition or after knowing that a patient has been validly
2622	2622	diagnosed with a qualifying medical condition by a healthcare provider:
2623	2623	1
2624	2624	2
2625	2625	3
2626	2626	4
2627	2627	5
2628	2628	6
2629	2629	7
2630	2630	8
2631	2631	9
2632	2632	10
2633	2633	11
2634	2634	12
2635	2635	13
2636	2636	14
2637	2637	15
2638	2638	16
2639	2639	17
2640	2640	18
2641	2641	19
2642	2642	20
2643	2643	21
2644	2644	22
2645	2645	23
2646	2646	24
2647	2647	25
2648	2648	26
2649	2649	27
2650	2650	28
2651	2651	29
2652	2652	30
2653	2653	31
2654	2654	32
2655	2655	33
2656	2656	34
2657	2657	35
2658	2658	36
2659	2659	37
2660	2660	38
2661	2661	39
2662	2662	40
2663	2663	41
2664	2664	42
2665	2665	43 SB 171 32
2666	2666	(A) Advised the patient about the possible benefits and risks of using
2667	2667	medical cannabis consumer products;
2668	2668	(B) advised the patient that using medical cannabis consumer
2669	2669	products may mitigate the symptoms of the patient's qualifying medical
2670	2670	condition; or
2671	2671	(C) issued to the patient a valid, written certification in accordance
2672	2672	with section 3, and amendments thereto;
2673	2673	(2) the physician uses or has used medical cannabis consumer
2674	2674	products in accordance with the veterans first medical cannabis act; or
2675	2675	(3) the physician acts or has acted as a patient's primary caregiver in
2676	2676	accordance with the veterans first medical cannabis act.
2677	2677	Sec. 24. K.S.A. 65-28a05 is hereby amended to read as follows: 65-
2678	2678	28a05. (a) A licensee's license may be revoked, suspended or limited, or
2679	2679	the licensee may be publicly or privately censured, or an application for a
2680	2680	license or for reinstatement of a license may be denied upon a finding of
2681	2681	the existence of any of the following grounds:
2682	2682	(a)(1) The licensee has committed an act of unprofessional conduct as
2683	2683	defined by rules and regulations adopted by the board;
2684	2684	(b)(2) the licensee has obtained a license by means of fraud,
2685	2685	misrepresentations or concealment of material facts;
2686	2686	(c)(3) the licensee has committed an act of professional incompetency
2687	2687	as defined by rules and regulations adopted by the board;
2688	2688	(d)(4) the licensee has been convicted of a felony;
2689	2689	(e)(5) the licensee has violated any provision of this act, and
2690	2690	amendments thereto;
2691	2691	(f)(6) the licensee has violated any lawful order or rule and regulation
2692	2692	of the board;
2693	2693	(g)(7) the licensee has been found to be mentally ill, disabled, not
2694	2694	guilty by reason of insanity, not guilty because the licensee suffers from a
2695	2695	mental disease or defect or is incompetent to stand trial by a court of
2696	2696	competent jurisdiction;
2697	2697	(h)(8) the licensee has violated a federal law or regulation relating to
2698	2698	controlled substances;
2699	2699	(i)(9) the licensee has failed to report to the board any adverse action
2700	2700	taken against the licensee by another state or licensing jurisdiction, a peer
2701	2701	review body, a health care facility, a professional association or society, a
2702	2702	governmental agency, by a law enforcement agency or a court for acts or
2703	2703	conduct similar to acts or conduct which would constitute grounds for
2704	2704	disciplinary action under this section;
2705	2705	(j)(10) the licensee has surrendered a license or authorization to
2706	2706	practice as a physician assistant in another state or jurisdiction, has
2707	2707	surrendered the authority to utilize controlled substances issued by any
2708	2708	state or federal agency, has agreed to a limitation to or restriction of
2709	2709	1
2710	2710	2
2711	2711	3
2712	2712	4
2713	2713	5
2714	2714	6
2715	2715	7
2716	2716	8
2717	2717	9
2718	2718	10
2719	2719	11
2720	2720	12
2721	2721	13
2722	2722	14
2723	2723	15
2724	2724	16
2725	2725	17
2726	2726	18
2727	2727	19
2728	2728	20
2729	2729	21
2730	2730	22
2731	2731	23
2732	2732	24
2733	2733	25
2734	2734	26
2735	2735	27
2736	2736	28
2737	2737	29
2738	2738	30
2739	2739	31
2740	2740	32
2741	2741	33
2742	2742	34
2743	2743	35
2744	2744	36
2745	2745	37
2746	2746	38
2747	2747	39
2748	2748	40
2749	2749	41
2750	2750	42
2751	2751	43 SB 171 33
2752	2752	privileges at any medical care facility or has surrendered the licensee's
2753	2753	membership on any professional staff or in any professional association or
2754	2754	society while under investigation for acts or conduct similar to acts or
2755	2755	conduct which would constitute grounds for disciplinary action under this
2756	2756	section;
2757	2757	(k)(11) the licensee has failed to report to the board the surrender of
2758	2758	the licensee's license or authorization to practice as a physician assistant in
2759	2759	another state or jurisdiction or the surrender of the licensee's membership
2760	2760	on any professional staff or in any professional association or society
2761	2761	while under investigation for acts or conduct similar to acts or conduct
2762	2762	which would constitute grounds for disciplinary action under this section;
2763	2763	(l)(12) the licensee has an adverse judgment, award or settlement
2764	2764	against the licensee resulting from a medical liability claim related to acts
2765	2765	or conduct similar to acts or conduct which would constitute grounds for
2766	2766	disciplinary action under this section;
2767	2767	(m)(13) the licensee has failed to report to the board any adverse
2768	2768	judgment, settlement or award against the licensee resulting from a
2769	2769	medical malpractice liability claim related to acts or conduct similar to acts
2770	2770	or conduct which would constitute grounds for disciplinary action under
2771	2771	this section;
2772	2772	(n)(14) the licensee's ability to practice with reasonable skill and
2773	2773	safety to patients is impaired by reason of physical or mental illness, or
2774	2774	condition or use of alcohol, drugs or controlled substances. All
2775	2775	information, reports, findings and other records relating to impairment
2776	2776	shall be confidential and not subject to discovery by or release to any
2777	2777	person or entity outside of a board proceeding;
2778	2778	(o)(15) the licensee has exceeded or has acted outside the scope of
2779	2779	authority given the physician assistant by the supervising physician or by
2780	2780	this act; or
2781	2781	(p)(16) the licensee has assisted suicide in violation of K.S.A. 21-
2782	2782	3406, prior to its repeal, or K.S.A. 2022 Supp. 21-5407, and amendments
2783	2783	thereto, as established by any of the following:
2784	2784	(1)(A) A copy of the record of criminal conviction or plea of guilty
2785	2785	for a felony in violation of K.S.A. 21-3406, prior to its repeal, or K.S.A.
2786	2786	2022 Supp. 21-5407, and amendments thereto.
2787	2787	(2)(B) A copy of the record of a judgment of contempt of court for
2788	2788	violating an injunction issued under K.S.A. 60-4404, and amendments
2789	2789	thereto.
2790	2790	(3)(C) A copy of the record of a judgment assessing damages under
2791	2791	K.S.A. 60-4405, and amendments thereto.
2792	2792	(b) The board shall not revoke, suspend or limit a physician
2793	2793	assistant's license, publicly or privately censure a physician assistant or
2794	2794	deny an application for a license or for reinstatement of a license upon
2795	2795	1
2796	2796	2
2797	2797	3
2798	2798	4
2799	2799	5
2800	2800	6
2801	2801	7
2802	2802	8
2803	2803	9
2804	2804	10
2805	2805	11
2806	2806	12
2807	2807	13
2808	2808	14
2809	2809	15
2810	2810	16
2811	2811	17
2812	2812	18
2813	2813	19
2814	2814	20
2815	2815	21
2816	2816	22
2817	2817	23
2818	2818	24
2819	2819	25
2820	2820	26
2821	2821	27
2822	2822	28
2823	2823	29
2824	2824	30
2825	2825	31
2826	2826	32
2827	2827	33
2828	2828	34
2829	2829	35
2830	2830	36
2831	2831	37
2832	2832	38
2833	2833	39
2834	2834	40
2835	2835	41
2836	2836	42
2837	2837	43 SB 171 34
2838	2838	any of the following:
2839	2839	(1) The physician assistant, after diagnosing a patient with a
2840	2840	qualifying medical condition or after knowing that a patient has been
2841	2841	validly diagnosed with a qualifying medical condition by a healthcare
2842	2842	provider:
2843	2843	(A) Advised the patient about the possible benefits and risks of using
2844	2844	medical cannabis consumer products;
2845	2845	(B) advised the patient that using medical cannabis consumer
2846	2846	products may mitigate the symptoms of the patient's qualifying medical
2847	2847	condition; or
2848	2848	(C) issued to the patient a valid, written certification in accordance
2849	2849	with section 3, and amendments thereto;
2850	2850	(2) the physician assistant uses or has used medical cannabis
2851	2851	consumer products in accordance with the veterans first medical cannabis
2852	2852	act; or
2853	2853	(3) the physician assistant acts or has acted as a person's primary
2854	2854	caregiver in accordance with the veterans first medical cannabis act.
2855	2855	Sec. 25. K.S.A. 65-28b08 is hereby amended to read as follows: 65-
2856	2856	28b08. (a) The board may deny, revoke, limit or suspend any license or
2857	2857	authorization issued to a certified nurse-midwife to engage in the
2858	2858	independent practice of midwifery that is issued by the board or applied
2859	2859	for under this act, or may publicly censure a licensee or holder of a
2860	2860	temporary permit or authorization, if the applicant or licensee is found
2861	2861	after a hearing:
2862	2862	(1) To be guilty of fraud or deceit while engaging in the independent
2863	2863	practice of midwifery or in procuring or attempting to procure a license to
2864	2864	engage in the independent practice of midwifery;
2865	2865	(2) to have been found guilty of a felony or to have been found guilty
2866	2866	of a misdemeanor involving an illegal drug offense unless the applicant or
2867	2867	licensee establishes sufficient rehabilitation to warrant the public trust,
2868	2868	except that notwithstanding K.S.A. 74-120, and amendments thereto, no
2869	2869	license or authorization to practice and engage in the independent practice
2870	2870	of midwifery shall be granted to a person with a felony conviction for a
2871	2871	crime against persons as specified in article 34 of chapter 21 of the Kansas
2872	2872	Statutes Annotated, prior to its repeal, or article 54 of chapter 21 of the
2873	2873	Kansas Statutes Annotated, and amendments thereto, or K.S.A. 2022 Supp.
2874	2874	21-6104, 21-6325, 21-6326 or 21-6418, and amendments thereto;
2875	2875	(3) to have committed an act of professional incompetence as defined
2876	2876	in subsection (c);
2877	2877	(4) to be unable to practice the healing arts with reasonable skill and
2878	2878	safety by reason of impairment due to physical or mental illness or
2879	2879	condition or use of alcohol, drugs or controlled substances. All
2880	2880	information, reports, findings and other records relating to impairment
2881	2881	1
2882	2882	2
2883	2883	3
2884	2884	4
2885	2885	5
2886	2886	6
2887	2887	7
2888	2888	8
2889	2889	9
2890	2890	10
2891	2891	11
2892	2892	12
2893	2893	13
2894	2894	14
2895	2895	15
2896	2896	16
2897	2897	17
2898	2898	18
2899	2899	19
2900	2900	20
2901	2901	21
2902	2902	22
2903	2903	23
2904	2904	24
2905	2905	25
2906	2906	26
2907	2907	27
2908	2908	28
2909	2909	29
2910	2910	30
2911	2911	31
2912	2912	32
2913	2913	33
2914	2914	34
2915	2915	35
2916	2916	36
2917	2917	37
2918	2918	38
2919	2919	39
2920	2920	40
2921	2921	41
2922	2922	42
2923	2923	43 SB 171 35
2924	2924	shall be confidential and not subject to discovery or release to any person
2925	2925	or entity outside of a board proceeding. The provisions of this paragraph
2926	2926	providing confidentiality of records shall expire on July 1, 2022, unless the
2927	2927	legislature reviews and reenacts such provisions pursuant to K.S.A. 45-
2928	2928	229, and amendments thereto, prior to July 1, 2022;
2929	2929	(5) to be a person who has been adjudged in need of a guardian or
2930	2930	conservator, or both, under the act for obtaining a guardian or conservator,
2931	2931	or both, and who has not been restored to capacity under that act;
2932	2932	(6) to be guilty of unprofessional conduct as defined by rules and
2933	2933	regulations of the board;
2934	2934	(7) to have willfully or repeatedly violated the provisions of the
2935	2935	Kansas nurse practice act or any rules and regulations adopted pursuant to
2936	2936	that act;
2937	2937	(8) to have a license to practice nursing as a registered nurse or as a
2938	2938	practical nurse denied, revoked, limited or suspended, or to have been
2939	2939	publicly or privately censured, by a licensing authority of another state,
2940	2940	agency of the United States government, territory of the United States or
2941	2941	country, or to have other disciplinary action taken against the applicant or
2942	2942	licensee by a licensing authority of another state, agency of the United
2943	2943	States government, territory of the United States or country. A certified
2944	2944	copy of the record or order of public or private censure, denial, suspension,
2945	2945	limitation, revocation or other disciplinary action of the licensing authority
2946	2946	of another state, agency of the United States government, territory of the
2947	2947	United States or country shall constitute prima facie evidence of such a
2948	2948	fact for purposes of this paragraph; or
2949	2949	(9) to have assisted suicide in violation of K.S.A. 21-3406, prior to its
2950	2950	repeal, or K.S.A. 2022 Supp. 21-5407, and amendments thereto, as
2951	2951	established by any of the following:
2952	2952	(A) A copy of the record of criminal conviction or plea of guilty to a
2953	2953	felony in violation of K.S.A. 21-3406, prior to its repeal, or K.S.A. 2022
2954	2954	Supp. 21-5407, and amendments thereto;
2955	2955	(B) a copy of the record of a judgment of contempt of court for
2956	2956	violating an injunction issued under K.S.A. 60-4404, and amendments
2957	2957	thereto; or
2958	2958	(C) a copy of the record of a judgment assessing damages under
2959	2959	K.S.A. 60-4405, and amendments thereto.
2960	2960	(b) No person shall be excused from testifying in any proceedings
2961	2961	before the board under this act or in any civil proceedings under this act
2962	2962	before a court of competent jurisdiction on the ground that such testimony
2963	2963	may incriminate the person testifying, but such testimony shall not be used
2964	2964	against the person for the prosecution of any crime under the laws of this
2965	2965	state, except the crime of perjury as defined in K.S.A. 2022 Supp. 21-
2966	2966	5903, and amendments thereto.
2967	2967	1
2968	2968	2
2969	2969	3
2970	2970	4
2971	2971	5
2972	2972	6
2973	2973	7
2974	2974	8
2975	2975	9
2976	2976	10
2977	2977	11
2978	2978	12
2979	2979	13
2980	2980	14
2981	2981	15
2982	2982	16
2983	2983	17
2984	2984	18
2985	2985	19
2986	2986	20
2987	2987	21
2988	2988	22
2989	2989	23
2990	2990	24
2991	2991	25
2992	2992	26
2993	2993	27
2994	2994	28
2995	2995	29
2996	2996	30
2997	2997	31
2998	2998	32
2999	2999	33
3000	3000	34
3001	3001	35
3002	3002	36
3003	3003	37
3004	3004	38
3005	3005	39
3006	3006	40
3007	3007	41
3008	3008	42
3009	3009	43 SB 171 36
3010	3010	(c) As used in this section, "professional incompetency" means:
3011	3011	(1) One or more instances involving failure to adhere to the
3012	3012	applicable standard of care to a degree which that constitutes gross
3013	3013	negligence, as determined by the board;
3014	3014	(2) repeated instances involving failure to adhere to the applicable
3015	3015	standard of care to a degree which that constitutes ordinary negligence, as
3016	3016	determined by the board; or
3017	3017	(3) a pattern of practice or other behavior which that demonstrates a
3018	3018	manifest incapacity or incompetence to engage in the independent practice
3019	3019	of midwifery.
3020	3020	(d) The board, upon request, shall receive from the Kansas bureau of
3021	3021	investigation such criminal history record information relating to arrests
3022	3022	and criminal convictions, as necessary, for the purpose of determining
3023	3023	initial and continuing qualifications of licensees and applicants for
3024	3024	licensure by the board.
3025	3025	(e) The provisions of this section shall become effective on January 1,
3026	3026	2017The board shall not deny, revoke, limit or suspend any license or
3027	3027	authorization issued to a certified nurse-midwife or publicly censure a
3028	3028	certified nurse-midwife upon any of the following:
3029	3029	(1) The certified nurse-midwife, after diagnosing a patient with a
3030	3030	qualifying medical condition or after knowing that a patient has been
3031	3031	validly diagnosed with a qualifying medical condition by a healthcare
3032	3032	provider:
3033	3033	(A) Advised the patient about the possible benefits and risks of using
3034	3034	medical cannabis consumer products;
3035	3035	(B) advised the patient that using medical cannabis consumer
3036	3036	products may mitigate the symptoms of the patient's qualifying medical
3037	3037	condition; or
3038	3038	(C) issued to the patient a valid, written certification under section 3,
3039	3039	and amendments thereto;
3040	3040	(2) the certified nurse-midwife uses or has used medical cannabis
3041	3041	consumer products in accordance with the veterans first medical cannabis
3042	3042	act; or
3043	3043	(3) the certified nurse-midwife acts or has acted as a person's
3044	3044	primary caregiver in accordance with the veterans first medical cannabis
3045	3045	act.
3046	3046	Sec. 26. K.S.A. 2022 Supp. 79-3606 is hereby amended to read as
3047	3047	follows: 79-3606. The following shall be exempt from the tax imposed by
3048	3048	this act:
3049	3049	(a) All sales of motor-vehicle fuel or other articles upon which a sales
3050	3050	or excise tax has been paid, not subject to refund, under the laws of this
3051	3051	state except cigarettes and electronic cigarettes as defined by K.S.A. 79-
3052	3052	3301, and amendments thereto, including consumable material for such
3053	3053	1
3054	3054	2
3055	3055	3
3056	3056	4
3057	3057	5
3058	3058	6
3059	3059	7
3060	3060	8
3061	3061	9
3062	3062	10
3063	3063	11
3064	3064	12
3065	3065	13
3066	3066	14
3067	3067	15
3068	3068	16
3069	3069	17
3070	3070	18
3071	3071	19
3072	3072	20
3073	3073	21
3074	3074	22
3075	3075	23
3076	3076	24
3077	3077	25
3078	3078	26
3079	3079	27
3080	3080	28
3081	3081	29
3082	3082	30
3083	3083	31
3084	3084	32
3085	3085	33
3086	3086	34
3087	3087	35
3088	3088	36
3089	3089	37
3090	3090	38
3091	3091	39
3092	3092	40
3093	3093	41
3094	3094	42
3095	3095	43 SB 171 37
3096	3096	electronic cigarettes, cereal malt beverages and malt products as defined
3097	3097	by K.S.A. 79-3817, and amendments thereto, including wort, liquid malt,
3098	3098	malt syrup and malt extract, that is not subject to taxation under the
3099	3099	provisions of K.S.A. 79-41a02, and amendments thereto, motor vehicles
3100	3100	taxed pursuant to K.S.A. 79-5117, and amendments thereto, tires taxed
3101	3101	pursuant to K.S.A. 65-3424d, and amendments thereto, drycleaning and
3102	3102	laundry services taxed pursuant to K.S.A. 65-34,150, and amendments
3103	3103	thereto, and gross receipts from regulated sports contests taxed pursuant to
3104	3104	the Kansas professional regulated sports act, and amendments thereto;
3105	3105	(b) all sales of tangible personal property or service, including the
3106	3106	renting and leasing of tangible personal property, purchased directly by the
3107	3107	state of Kansas, a political subdivision thereof, other than a school or
3108	3108	educational institution, or purchased by a public or private nonprofit
3109	3109	hospital, public hospital authority, nonprofit blood, tissue or organ bank or
3110	3110	nonprofit integrated community care organization and used exclusively for
3111	3111	state, political subdivision, hospital, public hospital authority, nonprofit
3112	3112	blood, tissue or organ bank or nonprofit integrated community care
3113	3113	organization purposes, except when: (1) Such state, hospital or public
3114	3114	hospital authority is engaged or proposes to engage in any business
3115	3115	specifically taxable under the provisions of this act and such items of
3116	3116	tangible personal property or service are used or proposed to be used in
3117	3117	such business; or (2) such political subdivision is engaged or proposes to
3118	3118	engage in the business of furnishing gas, electricity or heat to others and
3119	3119	such items of personal property or service are used or proposed to be used
3120	3120	in such business;
3121	3121	(c) all sales of tangible personal property or services, including the
3122	3122	renting and leasing of tangible personal property, purchased directly by a
3123	3123	public or private elementary or secondary school or public or private
3124	3124	nonprofit educational institution and used primarily by such school or
3125	3125	institution for nonsectarian programs and activities provided or sponsored
3126	3126	by such school or institution or in the erection, repair or enlargement of
3127	3127	buildings to be used for such purposes. The exemption herein provided
3128	3128	shall not apply to erection, construction, repair, enlargement or equipment
3129	3129	of buildings used primarily for human habitation, except that such
3130	3130	exemption shall apply to the erection, construction, repair, enlargement or
3131	3131	equipment of buildings used for human habitation by the cerebral palsy
3132	3132	research foundation of Kansas located in Wichita, Kansas, and multi
3133	3133	community diversified services, incorporated, located in McPherson,
3134	3134	Kansas;
3135	3135	(d) all sales of tangible personal property or services purchased by a
3136	3136	contractor for the purpose of constructing, equipping, reconstructing,
3137	3137	maintaining, repairing, enlarging, furnishing or remodeling facilities for
3138	3138	any public or private nonprofit hospital or public hospital authority, public
3139	3139	1
3140	3140	2
3141	3141	3
3142	3142	4
3143	3143	5
3144	3144	6
3145	3145	7
3146	3146	8
3147	3147	9
3148	3148	10
3149	3149	11
3150	3150	12
3151	3151	13
3152	3152	14
3153	3153	15
3154	3154	16
3155	3155	17
3156	3156	18
3157	3157	19
3158	3158	20
3159	3159	21
3160	3160	22
3161	3161	23
3162	3162	24
3163	3163	25
3164	3164	26
3165	3165	27
3166	3166	28
3167	3167	29
3168	3168	30
3169	3169	31
3170	3170	32
3171	3171	33
3172	3172	34
3173	3173	35
3174	3174	36
3175	3175	37
3176	3176	38
3177	3177	39
3178	3178	40
3179	3179	41
3180	3180	42
3181	3181	43 SB 171 38
3182	3182	or private elementary or secondary school, a public or private nonprofit
3183	3183	educational institution, state correctional institution including a privately
3184	3184	constructed correctional institution contracted for state use and ownership,
3185	3185	that would be exempt from taxation under the provisions of this act if
3186	3186	purchased directly by such hospital or public hospital authority, school,
3187	3187	educational institution or a state correctional institution; and all sales of
3188	3188	tangible personal property or services purchased by a contractor for the
3189	3189	purpose of constructing, equipping, reconstructing, maintaining, repairing,
3190	3190	enlarging, furnishing or remodeling facilities for any political subdivision
3191	3191	of the state or district described in subsection (s), the total cost of which is
3192	3192	paid from funds of such political subdivision or district and that would be
3193	3193	exempt from taxation under the provisions of this act if purchased directly
3194	3194	by such political subdivision or district. Nothing in this subsection or in
3195	3195	the provisions of K.S.A. 12-3418, and amendments thereto, shall be
3196	3196	deemed to exempt the purchase of any construction machinery, equipment
3197	3197	or tools used in the constructing, equipping, reconstructing, maintaining,
3198	3198	repairing, enlarging, furnishing or remodeling facilities for any political
3199	3199	subdivision of the state or any such district. As used in this subsection,
3200	3200	K.S.A. 12-3418 and 79-3640, and amendments thereto, "funds of a
3201	3201	political subdivision" shall mean general tax revenues, the proceeds of any
3202	3202	bonds and gifts or grants-in-aid. Gifts shall not mean funds used for the
3203	3203	purpose of constructing, equipping, reconstructing, repairing, enlarging,
3204	3204	furnishing or remodeling facilities that are to be leased to the donor. When
3205	3205	any political subdivision of the state, district described in subsection (s),
3206	3206	public or private nonprofit hospital or public hospital authority, public or
3207	3207	private elementary or secondary school, public or private nonprofit
3208	3208	educational institution, state correctional institution including a privately
3209	3209	constructed correctional institution contracted for state use and ownership
3210	3210	shall contract for the purpose of constructing, equipping, reconstructing,
3211	3211	maintaining, repairing, enlarging, furnishing or remodeling facilities, it
3212	3212	shall obtain from the state and furnish to the contractor an exemption
3213	3213	certificate for the project involved, and the contractor may purchase
3214	3214	materials for incorporation in such project. The contractor shall furnish the
3215	3215	number of such certificate to all suppliers from whom such purchases are
3216	3216	made, and such suppliers shall execute invoices covering the same bearing
3217	3217	the number of such certificate. Upon completion of the project the
3218	3218	contractor shall furnish to the political subdivision, district described in
3219	3219	subsection (s), hospital or public hospital authority, school, educational
3220	3220	institution or department of corrections concerned a sworn statement, on a
3221	3221	form to be provided by the director of taxation, that all purchases so made
3222	3222	were entitled to exemption under this subsection. As an alternative to the
3223	3223	foregoing procedure, any such contracting entity may apply to the
3224	3224	secretary of revenue for agent status for the sole purpose of issuing and
3225	3225	1
3226	3226	2
3227	3227	3
3228	3228	4
3229	3229	5
3230	3230	6
3231	3231	7
3232	3232	8
3233	3233	9
3234	3234	10
3235	3235	11
3236	3236	12
3237	3237	13
3238	3238	14
3239	3239	15
3240	3240	16
3241	3241	17
3242	3242	18
3243	3243	19
3244	3244	20
3245	3245	21
3246	3246	22
3247	3247	23
3248	3248	24
3249	3249	25
3250	3250	26
3251	3251	27
3252	3252	28
3253	3253	29
3254	3254	30
3255	3255	31
3256	3256	32
3257	3257	33
3258	3258	34
3259	3259	35
3260	3260	36
3261	3261	37
3262	3262	38
3263	3263	39
3264	3264	40
3265	3265	41
3266	3266	42
3267	3267	43 SB 171 39
3268	3268	furnishing project exemption certificates to contractors pursuant to rules
3269	3269	and regulations adopted by the secretary establishing conditions and
3270	3270	standards for the granting and maintaining of such status. All invoices
3271	3271	shall be held by the contractor for a period of five years and shall be
3272	3272	subject to audit by the director of taxation. If any materials purchased
3273	3273	under such a certificate are found not to have been incorporated in the
3274	3274	building or other project or not to have been returned for credit or the sales
3275	3275	or compensating tax otherwise imposed upon such materials that will not
3276	3276	be so incorporated in the building or other project reported and paid by
3277	3277	such contractor to the director of taxation not later than the 20
3278	3278	th
3279	3279	day of the
3280	3280	month following the close of the month in which it shall be determined
3281	3281	that such materials will not be used for the purpose for which such
3282	3282	certificate was issued, the political subdivision, district described in
3283	3283	subsection (s), hospital or public hospital authority, school, educational
3284	3284	institution or the contractor contracting with the department of corrections
3285	3285	for a correctional institution concerned shall be liable for tax on all
3286	3286	materials purchased for the project, and upon payment thereof it may
3287	3287	recover the same from the contractor together with reasonable attorney
3288	3288	fees. Any contractor or any agent, employee or subcontractor thereof, who
3289	3289	shall use or otherwise dispose of any materials purchased under such a
3290	3290	certificate for any purpose other than that for which such a certificate is
3291	3291	issued without the payment of the sales or compensating tax otherwise
3292	3292	imposed upon such materials, shall be guilty of a misdemeanor and, upon
3293	3293	conviction therefor, shall be subject to the penalties provided for in K.S.A.
3294	3294	79-3615(h), and amendments thereto;
3295	3295	(e) all sales of tangible personal property or services purchased by a
3296	3296	contractor for the erection, repair or enlargement of buildings or other
3297	3297	projects for the government of the United States, its agencies or
3298	3298	instrumentalities, that would be exempt from taxation if purchased directly
3299	3299	by the government of the United States, its agencies or instrumentalities.
3300	3300	When the government of the United States, its agencies or
3301	3301	instrumentalities shall contract for the erection, repair, or enlargement of
3302	3302	any building or other project, it shall obtain from the state and furnish to
3303	3303	the contractor an exemption certificate for the project involved, and the
3304	3304	contractor may purchase materials for incorporation in such project. The
3305	3305	contractor shall furnish the number of such certificates to all suppliers
3306	3306	from whom such purchases are made, and such suppliers shall execute
3307	3307	invoices covering the same bearing the number of such certificate. Upon
3308	3308	completion of the project the contractor shall furnish to the government of
3309	3309	the United States, its agencies or instrumentalities concerned a sworn
3310	3310	statement, on a form to be provided by the director of taxation, that all
3311	3311	purchases so made were entitled to exemption under this subsection. As an
3312	3312	alternative to the foregoing procedure, any such contracting entity may
3313	3313	1
3314	3314	2
3315	3315	3
3316	3316	4
3317	3317	5
3318	3318	6
3319	3319	7
3320	3320	8
3321	3321	9
3322	3322	10
3323	3323	11
3324	3324	12
3325	3325	13
3326	3326	14
3327	3327	15
3328	3328	16
3329	3329	17
3330	3330	18
3331	3331	19
3332	3332	20
3333	3333	21
3334	3334	22
3335	3335	23
3336	3336	24
3337	3337	25
3338	3338	26
3339	3339	27
3340	3340	28
3341	3341	29
3342	3342	30
3343	3343	31
3344	3344	32
3345	3345	33
3346	3346	34
3347	3347	35
3348	3348	36
3349	3349	37
3350	3350	38
3351	3351	39
3352	3352	40
3353	3353	41
3354	3354	42
3355	3355	43 SB 171 40
3356	3356	apply to the secretary of revenue for agent status for the sole purpose of
3357	3357	issuing and furnishing project exemption certificates to contractors
3358	3358	pursuant to rules and regulations adopted by the secretary establishing
3359	3359	conditions and standards for the granting and maintaining of such status.
3360	3360	All invoices shall be held by the contractor for a period of five years and
3361	3361	shall be subject to audit by the director of taxation. Any contractor or any
3362	3362	agent, employee or subcontractor thereof, who shall use or otherwise
3363	3363	dispose of any materials purchased under such a certificate for any purpose
3364	3364	other than that for which such a certificate is issued without the payment
3365	3365	of the sales or compensating tax otherwise imposed upon such materials,
3366	3366	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
3367	3367	subject to the penalties provided for in K.S.A. 79-3615(h), and
3368	3368	amendments thereto;
3369	3369	(f) tangible personal property purchased by a railroad or public utility
3370	3370	for consumption or movement directly and immediately in interstate
3371	3371	commerce;
3372	3372	(g) sales of aircraft including remanufactured and modified aircraft
3373	3373	sold to persons using directly or through an authorized agent such aircraft
3374	3374	as certified or licensed carriers of persons or property in interstate or
3375	3375	foreign commerce under authority of the laws of the United States or any
3376	3376	foreign government or sold to any foreign government or agency or
3377	3377	instrumentality of such foreign government and all sales of aircraft for use
3378	3378	outside of the United States and sales of aircraft repair, modification and
3379	3379	replacement parts and sales of services employed in the remanufacture,
3380	3380	modification and repair of aircraft;
3381	3381	(h) all rentals of nonsectarian textbooks by public or private
3382	3382	elementary or secondary schools;
3383	3383	(i) the lease or rental of all films, records, tapes, or any type of sound
3384	3384	or picture transcriptions used by motion picture exhibitors;
3385	3385	(j) meals served without charge or food used in the preparation of
3386	3386	such meals to employees of any restaurant, eating house, dining car, hotel,
3387	3387	drugstore or other place where meals or drinks are regularly sold to the
3388	3388	public if such employees' duties are related to the furnishing or sale of
3389	3389	such meals or drinks;
3390	3390	(k) any motor vehicle, semitrailer or pole trailer, as such terms are
3391	3391	defined by K.S.A. 8-126, and amendments thereto, or aircraft sold and
3392	3392	delivered in this state to a bona fide resident of another state, which motor
3393	3393	vehicle, semitrailer, pole trailer or aircraft is not to be registered or based
3394	3394	in this state and which vehicle, semitrailer, pole trailer or aircraft will not
3395	3395	remain in this state more than 10 days;
3396	3396	(l) all isolated or occasional sales of tangible personal property,
3397	3397	services, substances or things, except isolated or occasional sale of motor
3398	3398	vehicles specifically taxed under the provisions of K.S.A. 79-3603(o), and
3399	3399	1
3400	3400	2
3401	3401	3
3402	3402	4
3403	3403	5
3404	3404	6
3405	3405	7
3406	3406	8
3407	3407	9
3408	3408	10
3409	3409	11
3410	3410	12
3411	3411	13
3412	3412	14
3413	3413	15
3414	3414	16
3415	3415	17
3416	3416	18
3417	3417	19
3418	3418	20
3419	3419	21
3420	3420	22
3421	3421	23
3422	3422	24
3423	3423	25
3424	3424	26
3425	3425	27
3426	3426	28
3427	3427	29
3428	3428	30
3429	3429	31
3430	3430	32
3431	3431	33
3432	3432	34
3433	3433	35
3434	3434	36
3435	3435	37
3436	3436	38
3437	3437	39
3438	3438	40
3439	3439	41
3440	3440	42
3441	3441	43 SB 171 41
3442	3442	amendments thereto;
3443	3443	(m) all sales of tangible personal property that become an ingredient
3444	3444	or component part of tangible personal property or services produced,
3445	3445	manufactured or compounded for ultimate sale at retail within or without
3446	3446	the state of Kansas; and any such producer, manufacturer or compounder
3447	3447	may obtain from the director of taxation and furnish to the supplier an
3448	3448	exemption certificate number for tangible personal property for use as an
3449	3449	ingredient or component part of the property or services produced,
3450	3450	manufactured or compounded;
3451	3451	(n) all sales of tangible personal property that is consumed in the
3452	3452	production, manufacture, processing, mining, drilling, refining or
3453	3453	compounding of tangible personal property, the treating of by-products or
3454	3454	wastes derived from any such production process, the providing of
3455	3455	services or the irrigation of crops for ultimate sale at retail within or
3456	3456	without the state of Kansas; and any purchaser of such property may
3457	3457	obtain from the director of taxation and furnish to the supplier an
3458	3458	exemption certificate number for tangible personal property for
3459	3459	consumption in such production, manufacture, processing, mining,
3460	3460	drilling, refining, compounding, treating, irrigation and in providing such
3461	3461	services;
3462	3462	(o) all sales of animals, fowl and aquatic plants and animals, the
3463	3463	primary purpose of which is use in agriculture or aquaculture, as defined in
3464	3464	K.S.A. 47-1901, and amendments thereto, the production of food for
3465	3465	human consumption, the production of animal, dairy, poultry or aquatic
3466	3466	plant and animal products, fiber or fur, or the production of offspring for
3467	3467	use for any such purpose or purposes;
3468	3468	(p) all sales of drugs dispensed pursuant to a prescription order by a
3469	3469	licensed practitioner or a mid-level practitioner as defined by K.S.A. 65-
3470	3470	1626, and amendments thereto. As used in this subsection, "drug" means a
3471	3471	compound, substance or preparation and any component of a compound,
3472	3472	substance or preparation, other than food and food ingredients, dietary
3473	3473	supplements or alcoholic beverages, recognized in the official United
3474	3474	States pharmacopeia, official homeopathic pharmacopoeia of the United
3475	3475	States or official national formulary, and supplement to any of them,
3476	3476	intended for use in the diagnosis, cure, mitigation, treatment or prevention
3477	3477	of disease or intended to affect the structure or any function of the body,
3478	3478	except that for taxable years commencing after December 31, 2013, this
3479	3479	subsection shall not apply to any sales of drugs used in the performance or
3480	3480	induction of an abortion, as defined in K.S.A. 65-6701, and amendments
3481	3481	thereto;
3482	3482	(q) all sales of insulin dispensed by a person licensed by the state
3483	3483	board of pharmacy to a person for treatment of diabetes at the direction of
3484	3484	a person licensed to practice medicine by the state board of healing arts;
3485	3485	1
3486	3486	2
3487	3487	3
3488	3488	4
3489	3489	5
3490	3490	6
3491	3491	7
3492	3492	8
3493	3493	9
3494	3494	10
3495	3495	11
3496	3496	12
3497	3497	13
3498	3498	14
3499	3499	15
3500	3500	16
3501	3501	17
3502	3502	18
3503	3503	19
3504	3504	20
3505	3505	21
3506	3506	22
3507	3507	23
3508	3508	24
3509	3509	25
3510	3510	26
3511	3511	27
3512	3512	28
3513	3513	29
3514	3514	30
3515	3515	31
3516	3516	32
3517	3517	33
3518	3518	34
3519	3519	35
3520	3520	36
3521	3521	37
3522	3522	38
3523	3523	39
3524	3524	40
3525	3525	41
3526	3526	42
3527	3527	43 SB 171 42
3528	3528	(r) all sales of oxygen delivery equipment, kidney dialysis equipment,
3529	3529	enteral feeding systems, prosthetic devices and mobility enhancing
3530	3530	equipment prescribed in writing by a person licensed to practice the
3531	3531	healing arts, dentistry or optometry, and in addition to such sales, all sales
3532	3532	of hearing aids, as defined by K.S.A. 74-5807(c), and amendments thereto,
3533	3533	and repair and replacement parts therefor, including batteries, by a person
3534	3534	licensed in the practice of dispensing and fitting hearing aids pursuant to
3535	3535	the provisions of K.S.A. 74-5808, and amendments thereto. For the
3536	3536	purposes of this subsection: (1) "Mobility enhancing equipment" means
3537	3537	equipment including repair and replacement parts to same, but does not
3538	3538	include durable medical equipment, which is primarily and customarily
3539	3539	used to provide or increase the ability to move from one place to another
3540	3540	and which is appropriate for use either in a home or a motor vehicle; is not
3541	3541	generally used by persons with normal mobility; and does not include any
3542	3542	motor vehicle or equipment on a motor vehicle normally provided by a
3543	3543	motor vehicle manufacturer; and (2) "prosthetic device" means a
3544	3544	replacement, corrective or supportive device including repair and
3545	3545	replacement parts for same worn on or in the body to artificially replace a
3546	3546	missing portion of the body, prevent or correct physical deformity or
3547	3547	malfunction or support a weak or deformed portion of the body;
3548	3548	(s) except as provided in K.S.A. 82a-2101, and amendments thereto,
3549	3549	all sales of tangible personal property or services purchased directly or
3550	3550	indirectly by a groundwater management district organized or operating
3551	3551	under the authority of K.S.A. 82a-1020 et seq., and amendments thereto,
3552	3552	by a rural water district organized or operating under the authority of
3553	3553	K.S.A. 82a-612, and amendments thereto, or by a water supply district
3554	3554	organized or operating under the authority of K.S.A. 19-3501 et seq., 19-
3555	3555	3522 et seq. or 19-3545, and amendments thereto, which property or
3556	3556	services are used in the construction activities, operation or maintenance of
3557	3557	the district;
3558	3558	(t) all sales of farm machinery and equipment or aquaculture
3559	3559	machinery and equipment, repair and replacement parts therefor and
3560	3560	services performed in the repair and maintenance of such machinery and
3561	3561	equipment. For the purposes of this subsection the term "farm machinery
3562	3562	and equipment or aquaculture machinery and equipment" shall include a
3563	3563	work-site utility vehicle, as defined in K.S.A. 8-126, and amendments
3564	3564	thereto, and is equipped with a bed or cargo box for hauling materials, and
3565	3565	shall also include machinery and equipment used in the operation of
3566	3566	Christmas tree farming but shall not include any passenger vehicle, truck,
3567	3567	truck tractor, trailer, semitrailer or pole trailer, other than a farm trailer, as
3568	3568	such terms are defined by K.S.A. 8-126, and amendments thereto. "Farm
3569	3569	machinery and equipment" includes precision farming equipment that is
3570	3570	portable or is installed or purchased to be installed on farm machinery and
3571	3571	1
3572	3572	2
3573	3573	3
3574	3574	4
3575	3575	5
3576	3576	6
3577	3577	7
3578	3578	8
3579	3579	9
3580	3580	10
3581	3581	11
3582	3582	12
3583	3583	13
3584	3584	14
3585	3585	15
3586	3586	16
3587	3587	17
3588	3588	18
3589	3589	19
3590	3590	20
3591	3591	21
3592	3592	22
3593	3593	23
3594	3594	24
3595	3595	25
3596	3596	26
3597	3597	27
3598	3598	28
3599	3599	29
3600	3600	30
3601	3601	31
3602	3602	32
3603	3603	33
3604	3604	34
3605	3605	35
3606	3606	36
3607	3607	37
3608	3608	38
3609	3609	39
3610	3610	40
3611	3611	41
3612	3612	42
3613	3613	43 SB 171 43
3614	3614	equipment. "Precision farming equipment" includes the following items
3615	3615	used only in computer-assisted farming, ranching or aquaculture
3616	3616	production operations: Soil testing sensors, yield monitors, computers,
3617	3617	monitors, software, global positioning and mapping systems, guiding
3618	3618	systems, modems, data communications equipment and any necessary
3619	3619	mounting hardware, wiring and antennas. Each purchaser of farm
3620	3620	machinery and equipment or aquaculture machinery and equipment
3621	3621	exempted herein must certify in writing on the copy of the invoice or sales
3622	3622	ticket to be retained by the seller that the farm machinery and equipment
3623	3623	or aquaculture machinery and equipment purchased will be used only in
3624	3624	farming, ranching or aquaculture production. Farming or ranching shall
3625	3625	include the operation of a feedlot and farm and ranch work for hire and the
3626	3626	operation of a nursery;
3627	3627	(u) all leases or rentals of tangible personal property used as a
3628	3628	dwelling if such tangible personal property is leased or rented for a period
3629	3629	of more than 28 consecutive days;
3630	3630	(v) all sales of tangible personal property to any contractor for use in
3631	3631	preparing meals for delivery to homebound elderly persons over 60 years
3632	3632	of age and to homebound disabled persons or to be served at a group-
3633	3633	sitting at a location outside of the home to otherwise homebound elderly
3634	3634	persons over 60 years of age and to otherwise homebound disabled
3635	3635	persons, as all or part of any food service project funded in whole or in
3636	3636	part by government or as part of a private nonprofit food service project
3637	3637	available to all such elderly or disabled persons residing within an area of
3638	3638	service designated by the private nonprofit organization, and all sales of
3639	3639	tangible personal property for use in preparing meals for consumption by
3640	3640	indigent or homeless individuals whether or not such meals are consumed
3641	3641	at a place designated for such purpose, and all sales of food products by or
3642	3642	on behalf of any such contractor or organization for any such purpose;
3643	3643	(w) all sales of natural gas, electricity, heat and water delivered
3644	3644	through mains, lines or pipes: (1) To residential premises for
3645	3645	noncommercial use by the occupant of such premises; (2) for agricultural
3646	3646	use and also, for such use, all sales of propane gas; (3) for use in the
3647	3647	severing of oil; and (4) to any property which is exempt from property
3648	3648	taxation pursuant to K.S.A. 79-201b, Second through Sixth. As used in this
3649	3649	paragraph, "severing" means the same as defined in K.S.A. 79-4216(k),
3650	3650	and amendments thereto. For all sales of natural gas, electricity and heat
3651	3651	delivered through mains, lines or pipes pursuant to the provisions of
3652	3652	subsection (w)(1) and (w)(2), the provisions of this subsection shall expire
3653	3653	on December 31, 2005;
3654	3654	(x) all sales of propane gas, LP-gas, coal, wood and other fuel sources
3655	3655	for the production of heat or lighting for noncommercial use of an
3656	3656	occupant of residential premises occurring prior to January 1, 2006;
3657	3657	1
3658	3658	2
3659	3659	3
3660	3660	4
3661	3661	5
3662	3662	6
3663	3663	7
3664	3664	8
3665	3665	9
3666	3666	10
3667	3667	11
3668	3668	12
3669	3669	13
3670	3670	14
3671	3671	15
3672	3672	16
3673	3673	17
3674	3674	18
3675	3675	19
3676	3676	20
3677	3677	21
3678	3678	22
3679	3679	23
3680	3680	24
3681	3681	25
3682	3682	26
3683	3683	27
3684	3684	28
3685	3685	29
3686	3686	30
3687	3687	31
3688	3688	32
3689	3689	33
3690	3690	34
3691	3691	35
3692	3692	36
3693	3693	37
3694	3694	38
3695	3695	39
3696	3696	40
3697	3697	41
3698	3698	42
3699	3699	43 SB 171 44
3700	3700	(y) all sales of materials and services used in the repairing, servicing,
3701	3701	altering, maintaining, manufacturing, remanufacturing, or modification of
3702	3702	railroad rolling stock for use in interstate or foreign commerce under
3703	3703	authority of the laws of the United States;
3704	3704	(z) all sales of tangible personal property and services purchased
3705	3705	directly by a port authority or by a contractor therefor as provided by the
3706	3706	provisions of K.S.A. 12-3418, and amendments thereto;
3707	3707	(aa) all sales of materials and services applied to equipment that is
3708	3708	transported into the state from without the state for repair, service,
3709	3709	alteration, maintenance, remanufacture or modification and that is
3710	3710	subsequently transported outside the state for use in the transmission of
3711	3711	liquids or natural gas by means of pipeline in interstate or foreign
3712	3712	commerce under authority of the laws of the United States;
3713	3713	(bb) all sales of used mobile homes or manufactured homes. As used
3714	3714	in this subsection: (1) "Mobile homes" and "manufactured homes" mean
3715	3715	the same as defined in K.S.A. 58-4202, and amendments thereto; and (2)
3716	3716	"sales of used mobile homes or manufactured homes" means sales other
3717	3717	than the original retail sale thereof;
3718	3718	(cc) all sales of tangible personal property or services purchased prior
3719	3719	to January 1, 2012, except as otherwise provided, for the purpose of and in
3720	3720	conjunction with constructing, reconstructing, enlarging or remodeling a
3721	3721	business or retail business that meets the requirements established in
3722	3722	K.S.A. 74-50,115, and amendments thereto, and the sale and installation of
3723	3723	machinery and equipment purchased for installation at any such business
3724	3724	or retail business, and all sales of tangible personal property or services
3725	3725	purchased on or after January 1, 2012, for the purpose of and in
3726	3726	conjunction with constructing, reconstructing, enlarging or remodeling a
3727	3727	business that meets the requirements established in K.S.A. 74-50,115(e),
3728	3728	and amendments thereto, and the sale and installation of machinery and
3729	3729	equipment purchased for installation at any such business. When a person
3730	3730	shall contract for the construction, reconstruction, enlargement or
3731	3731	remodeling of any such business or retail business, such person shall
3732	3732	obtain from the state and furnish to the contractor an exemption certificate
3733	3733	for the project involved, and the contractor may purchase materials,
3734	3734	machinery and equipment for incorporation in such project. The contractor
3735	3735	shall furnish the number of such certificates to all suppliers from whom
3736	3736	such purchases are made, and such suppliers shall execute invoices
3737	3737	covering the same bearing the number of such certificate. Upon
3738	3738	completion of the project the contractor shall furnish to the owner of the
3739	3739	business or retail business a sworn statement, on a form to be provided by
3740	3740	the director of taxation, that all purchases so made were entitled to
3741	3741	exemption under this subsection. All invoices shall be held by the
3742	3742	contractor for a period of five years and shall be subject to audit by the
3743	3743	1
3744	3744	2
3745	3745	3
3746	3746	4
3747	3747	5
3748	3748	6
3749	3749	7
3750	3750	8
3751	3751	9
3752	3752	10
3753	3753	11
3754	3754	12
3755	3755	13
3756	3756	14
3757	3757	15
3758	3758	16
3759	3759	17
3760	3760	18
3761	3761	19
3762	3762	20
3763	3763	21
3764	3764	22
3765	3765	23
3766	3766	24
3767	3767	25
3768	3768	26
3769	3769	27
3770	3770	28
3771	3771	29
3772	3772	30
3773	3773	31
3774	3774	32
3775	3775	33
3776	3776	34
3777	3777	35
3778	3778	36
3779	3779	37
3780	3780	38
3781	3781	39
3782	3782	40
3783	3783	41
3784	3784	42
3785	3785	43 SB 171 45
3786	3786	director of taxation. Any contractor or any agent, employee or
3787	3787	subcontractor thereof, who shall use or otherwise dispose of any materials,
3788	3788	machinery or equipment purchased under such a certificate for any
3789	3789	purpose other than that for which such a certificate is issued without the
3790	3790	payment of the sales or compensating tax otherwise imposed thereon, shall
3791	3791	be guilty of a misdemeanor and, upon conviction therefor, shall be subject
3792	3792	to the penalties provided for in K.S.A. 79-3615(h), and amendments
3793	3793	thereto. As used in this subsection, "business" and "retail business" mean
3794	3794	the same as defined in K.S.A. 74-50,114, and amendments thereto. Project
3795	3795	exemption certificates that have been previously issued under this
3796	3796	subsection by the department of revenue pursuant to K.S.A. 74-50,115,
3797	3797	and amendments thereto, but not including K.S.A. 74-50,115(e), and
3798	3798	amendments thereto, prior to January 1, 2012, and have not expired will be
3799	3799	effective for the term of the project or two years from the effective date of
3800	3800	the certificate, whichever occurs earlier. Project exemption certificates that
3801	3801	are submitted to the department of revenue prior to January 1, 2012, and
3802	3802	are found to qualify will be issued a project exemption certificate that will
3803	3803	be effective for a two-year period or for the term of the project, whichever
3804	3804	occurs earlier;
3805	3805	(dd) all sales of tangible personal property purchased with food
3806	3806	stamps issued by the United States department of agriculture;
3807	3807	(ee) all sales of lottery tickets and shares made as part of a lottery
3808	3808	operated by the state of Kansas;
3809	3809	(ff) on and after July 1, 1988, all sales of new mobile homes or
3810	3810	manufactured homes to the extent of 40% of the gross receipts, determined
3811	3811	without regard to any trade-in allowance, received from such sale. As used
3812	3812	in this subsection, "mobile homes" and "manufactured homes" mean the
3813	3813	same as defined in K.S.A. 58-4202, and amendments thereto;
3814	3814	(gg) all sales of tangible personal property purchased in accordance
3815	3815	with vouchers issued pursuant to the federal special supplemental food
3816	3816	program for women, infants and children;
3817	3817	(hh) all sales of medical supplies and equipment, including durable
3818	3818	medical equipment, purchased directly by a nonprofit skilled nursing home
3819	3819	or nonprofit intermediate nursing care home, as defined by K.S.A. 39-923,
3820	3820	and amendments thereto, for the purpose of providing medical services to
3821	3821	residents thereof. This exemption shall not apply to tangible personal
3822	3822	property customarily used for human habitation purposes. As used in this
3823	3823	subsection, "durable medical equipment" means equipment including
3824	3824	repair and replacement parts for such equipment, that can withstand
3825	3825	repeated use, is primarily and customarily used to serve a medical purpose,
3826	3826	generally is not useful to a person in the absence of illness or injury and is
3827	3827	not worn in or on the body, but does not include mobility enhancing
3828	3828	equipment as defined in subsection (r), oxygen delivery equipment, kidney
3829	3829	1
3830	3830	2
3831	3831	3
3832	3832	4
3833	3833	5
3834	3834	6
3835	3835	7
3836	3836	8
3837	3837	9
3838	3838	10
3839	3839	11
3840	3840	12
3841	3841	13
3842	3842	14
3843	3843	15
3844	3844	16
3845	3845	17
3846	3846	18
3847	3847	19
3848	3848	20
3849	3849	21
3850	3850	22
3851	3851	23
3852	3852	24
3853	3853	25
3854	3854	26
3855	3855	27
3856	3856	28
3857	3857	29
3858	3858	30
3859	3859	31
3860	3860	32
3861	3861	33
3862	3862	34
3863	3863	35
3864	3864	36
3865	3865	37
3866	3866	38
3867	3867	39
3868	3868	40
3869	3869	41
3870	3870	42
3871	3871	43 SB 171 46
3872	3872	dialysis equipment or enteral feeding systems;
3873	3873	(ii) all sales of tangible personal property purchased directly by a
3874	3874	nonprofit organization for nonsectarian comprehensive multidiscipline
3875	3875	youth development programs and activities provided or sponsored by such
3876	3876	organization, and all sales of tangible personal property by or on behalf of
3877	3877	any such organization. This exemption shall not apply to tangible personal
3878	3878	property customarily used for human habitation purposes;
3879	3879	(jj) all sales of tangible personal property or services, including the
3880	3880	renting and leasing of tangible personal property, purchased directly on
3881	3881	behalf of a community-based facility for people with intellectual disability
3882	3882	or mental health center organized pursuant to K.S.A. 19-4001 et seq., and
3883	3883	amendments thereto, and licensed in accordance with the provisions of
3884	3884	K.S.A. 39-2001 et seq., and amendments thereto, and all sales of tangible
3885	3885	personal property or services purchased by contractors during the time
3886	3886	period from July, 2003, through June, 2006, for the purpose of
3887	3887	constructing, equipping, maintaining or furnishing a new facility for a
3888	3888	community-based facility for people with intellectual disability or mental
3889	3889	health center located in Riverton, Cherokee County, Kansas, that would
3890	3890	have been eligible for sales tax exemption pursuant to this subsection if
3891	3891	purchased directly by such facility or center. This exemption shall not
3892	3892	apply to tangible personal property customarily used for human habitation
3893	3893	purposes;
3894	3894	(kk) (1) (A) all sales of machinery and equipment that are used in this
3895	3895	state as an integral or essential part of an integrated production operation
3896	3896	by a manufacturing or processing plant or facility;
3897	3897	(B) all sales of installation, repair and maintenance services
3898	3898	performed on such machinery and equipment; and
3899	3899	(C) all sales of repair and replacement parts and accessories
3900	3900	purchased for such machinery and equipment.
3901	3901	(2) For purposes of this subsection:
3902	3902	(A) "Integrated production operation" means an integrated series of
3903	3903	operations engaged in at a manufacturing or processing plant or facility to
3904	3904	process, transform or convert tangible personal property by physical,
3905	3905	chemical or other means into a different form, composition or character
3906	3906	from that in which it originally existed. Integrated production operations
3907	3907	shall include: (i) Production line operations, including packaging
3908	3908	operations; (ii) preproduction operations to handle, store and treat raw
3909	3909	materials; (iii) post production handling, storage, warehousing and
3910	3910	distribution operations; and (iv) waste, pollution and environmental
3911	3911	control operations, if any;
3912	3912	(B) "production line" means the assemblage of machinery and
3913	3913	equipment at a manufacturing or processing plant or facility where the
3914	3914	actual transformation or processing of tangible personal property occurs;
3915	3915	1
3916	3916	2
3917	3917	3
3918	3918	4
3919	3919	5
3920	3920	6
3921	3921	7
3922	3922	8
3923	3923	9
3924	3924	10
3925	3925	11
3926	3926	12
3927	3927	13
3928	3928	14
3929	3929	15
3930	3930	16
3931	3931	17
3932	3932	18
3933	3933	19
3934	3934	20
3935	3935	21
3936	3936	22
3937	3937	23
3938	3938	24
3939	3939	25
3940	3940	26
3941	3941	27
3942	3942	28
3943	3943	29
3944	3944	30
3945	3945	31
3946	3946	32
3947	3947	33
3948	3948	34
3949	3949	35
3950	3950	36
3951	3951	37
3952	3952	38
3953	3953	39
3954	3954	40
3955	3955	41
3956	3956	42
3957	3957	43 SB 171 47
3958	3958	(C) "manufacturing or processing plant or facility" means a single,
3959	3959	fixed location owned or controlled by a manufacturing or processing
3960	3960	business that consists of one or more structures or buildings in a
3961	3961	contiguous area where integrated production operations are conducted to
3962	3962	manufacture or process tangible personal property to be ultimately sold at
3963	3963	retail. Such term shall not include any facility primarily operated for the
3964	3964	purpose of conveying or assisting in the conveyance of natural gas,
3965	3965	electricity, oil or water. A business may operate one or more manufacturing
3966	3966	or processing plants or facilities at different locations to manufacture or
3967	3967	process a single product of tangible personal property to be ultimately sold
3968	3968	at retail;
3969	3969	(D) "manufacturing or processing business" means a business that
3970	3970	utilizes an integrated production operation to manufacture, process,
3971	3971	fabricate, finish or assemble items for wholesale and retail distribution as
3972	3972	part of what is commonly regarded by the general public as an industrial
3973	3973	manufacturing or processing operation or an agricultural commodity
3974	3974	processing operation. (i) Industrial manufacturing or processing operations
3975	3975	include, by way of illustration but not of limitation, the fabrication of
3976	3976	automobiles, airplanes, machinery or transportation equipment, the
3977	3977	fabrication of metal, plastic, wood or paper products, electricity power
3978	3978	generation, water treatment, petroleum refining, chemical production,
3979	3979	wholesale bottling, newspaper printing, ready mixed concrete production,
3980	3980	and the remanufacturing of used parts for wholesale or retail sale. Such
3981	3981	processing operations shall include operations at an oil well, gas well,
3982	3982	mine or other excavation site where the oil, gas, minerals, coal, clay, stone,
3983	3983	sand or gravel that has been extracted from the earth is cleaned, separated,
3984	3984	crushed, ground, milled, screened, washed or otherwise treated or prepared
3985	3985	before its transmission to a refinery or before any other wholesale or retail
3986	3986	distribution. (ii) Agricultural commodity processing operations include, by
3987	3987	way of illustration but not of limitation, meat packing, poultry slaughtering
3988	3988	and dressing, processing and packaging farm and dairy products in sealed
3989	3989	containers for wholesale and retail distribution, feed grinding, grain
3990	3990	milling, frozen food processing, and grain handling, cleaning, blending,
3991	3991	fumigation, drying and aeration operations engaged in by grain elevators
3992	3992	or other grain storage facilities. (iii) Manufacturing or processing
3993	3993	businesses do not include, by way of illustration but not of limitation,
3994	3994	nonindustrial businesses whose operations are primarily retail and that
3995	3995	produce or process tangible personal property as an incidental part of
3996	3996	conducting the retail business, such as retailers who bake, cook or prepare
3997	3997	food products in the regular course of their retail trade, grocery stores,
3998	3998	meat lockers and meat markets that butcher or dress livestock or poultry in
3999	3999	the regular course of their retail trade, contractors who alter, service, repair
4000	4000	or improve real property, and retail businesses that clean, service or
4001	4001	1
4002	4002	2
4003	4003	3
4004	4004	4
4005	4005	5
4006	4006	6
4007	4007	7
4008	4008	8
4009	4009	9
4010	4010	10
4011	4011	11
4012	4012	12
4013	4013	13
4014	4014	14
4015	4015	15
4016	4016	16
4017	4017	17
4018	4018	18
4019	4019	19
4020	4020	20
4021	4021	21
4022	4022	22
4023	4023	23
4024	4024	24
4025	4025	25
4026	4026	26
4027	4027	27
4028	4028	28
4029	4029	29
4030	4030	30
4031	4031	31
4032	4032	32
4033	4033	33
4034	4034	34
4035	4035	35
4036	4036	36
4037	4037	37
4038	4038	38
4039	4039	39
4040	4040	40
4041	4041	41
4042	4042	42
4043	4043	43 SB 171 48
4044	4044	refurbish and repair tangible personal property for its owner;
4045	4045	(E) "repair and replacement parts and accessories" means all parts
4046	4046	and accessories for exempt machinery and equipment, including, but not
4047	4047	limited to, dies, jigs, molds, patterns and safety devices that are attached to
4048	4048	exempt machinery or that are otherwise used in production, and parts and
4049	4049	accessories that require periodic replacement such as belts, drill bits,
4050	4050	grinding wheels, grinding balls, cutting bars, saws, refractory brick and
4051	4051	other refractory items for exempt kiln equipment used in production
4052	4052	operations;
4053	4053	(F) "primary" or "primarily" mean more than 50% of the time.
4054	4054	(3) For purposes of this subsection, machinery and equipment shall
4055	4055	be deemed to be used as an integral or essential part of an integrated
4056	4056	production operation when used to:
4057	4057	(A) Receive, transport, convey, handle, treat or store raw materials in
4058	4058	preparation of its placement on the production line;
4059	4059	(B) transport, convey, handle or store the property undergoing
4060	4060	manufacturing or processing at any point from the beginning of the
4061	4061	production line through any warehousing or distribution operation of the
4062	4062	final product that occurs at the plant or facility;
4063	4063	(C) act upon, effect, promote or otherwise facilitate a physical change
4064	4064	to the property undergoing manufacturing or processing;
4065	4065	(D) guide, control or direct the movement of property undergoing
4066	4066	manufacturing or processing;
4067	4067	(E) test or measure raw materials, the property undergoing
4068	4068	manufacturing or processing or the finished product, as a necessary part of
4069	4069	the manufacturer's integrated production operations;
4070	4070	(F) plan, manage, control or record the receipt and flow of inventories
4071	4071	of raw materials, consumables and component parts, the flow of the
4072	4072	property undergoing manufacturing or processing and the management of
4073	4073	inventories of the finished product;
4074	4074	(G) produce energy for, lubricate, control the operating of or
4075	4075	otherwise enable the functioning of other production machinery and
4076	4076	equipment and the continuation of production operations;
4077	4077	(H) package the property being manufactured or processed in a
4078	4078	container or wrapping in which such property is normally sold or
4079	4079	transported;
4080	4080	(I) transmit or transport electricity, coke, gas, water, steam or similar
4081	4081	substances used in production operations from the point of generation, if
4082	4082	produced by the manufacturer or processor at the plant site, to that
4083	4083	manufacturer's production operation; or, if purchased or delivered from
4084	4084	off-site, from the point where the substance enters the site of the plant or
4085	4085	facility to that manufacturer's production operations;
4086	4086	(J) cool, heat, filter, refine or otherwise treat water, steam, acid, oil,
4087	4087	1
4088	4088	2
4089	4089	3
4090	4090	4
4091	4091	5
4092	4092	6
4093	4093	7
4094	4094	8
4095	4095	9
4096	4096	10
4097	4097	11
4098	4098	12
4099	4099	13
4100	4100	14
4101	4101	15
4102	4102	16
4103	4103	17
4104	4104	18
4105	4105	19
4106	4106	20
4107	4107	21
4108	4108	22
4109	4109	23
4110	4110	24
4111	4111	25
4112	4112	26
4113	4113	27
4114	4114	28
4115	4115	29
4116	4116	30
4117	4117	31
4118	4118	32
4119	4119	33
4120	4120	34
4121	4121	35
4122	4122	36
4123	4123	37
4124	4124	38
4125	4125	39
4126	4126	40
4127	4127	41
4128	4128	42
4129	4129	43 SB 171 49
4130	4130	solvents or other substances that are used in production operations;
4131	4131	(K) provide and control an environment required to maintain certain
4132	4132	levels of air quality, humidity or temperature in special and limited areas
4133	4133	of the plant or facility, where such regulation of temperature or humidity is
4134	4134	part of and essential to the production process;
4135	4135	(L) treat, transport or store waste or other byproducts of production
4136	4136	operations at the plant or facility; or
4137	4137	(M) control pollution at the plant or facility where the pollution is
4138	4138	produced by the manufacturing or processing operation.
4139	4139	(4) The following machinery, equipment and materials shall be
4140	4140	deemed to be exempt even though it may not otherwise qualify as
4141	4141	machinery and equipment used as an integral or essential part of an
4142	4142	integrated production operation: (A) Computers and related peripheral
4143	4143	equipment that are utilized by a manufacturing or processing business for
4144	4144	engineering of the finished product or for research and development or
4145	4145	product design; (B) machinery and equipment that is utilized by a
4146	4146	manufacturing or processing business to manufacture or rebuild tangible
4147	4147	personal property that is used in manufacturing or processing operations,
4148	4148	including tools, dies, molds, forms and other parts of qualifying machinery
4149	4149	and equipment; (C) portable plants for aggregate concrete, bulk cement
4150	4150	and asphalt including cement mixing drums to be attached to a motor
4151	4151	vehicle; (D) industrial fixtures, devices, support facilities and special
4152	4152	foundations necessary for manufacturing and production operations, and
4153	4153	materials and other tangible personal property sold for the purpose of
4154	4154	fabricating such fixtures, devices, facilities and foundations. An exemption
4155	4155	certificate for such purchases shall be signed by the manufacturer or
4156	4156	processor. If the fabricator purchases such material, the fabricator shall
4157	4157	also sign the exemption certificate; (E) a manufacturing or processing
4158	4158	business' laboratory equipment that is not located at the plant or facility,
4159	4159	but that would otherwise qualify for exemption under subsection (3)(E);
4160	4160	(F) all machinery and equipment used in surface mining activities as
4161	4161	described in K.S.A. 49-601 et seq., and amendments thereto, beginning
4162	4162	from the time a reclamation plan is filed to the acceptance of the
4163	4163	completed final site reclamation.
4164	4164	(5) "Machinery and equipment used as an integral or essential part of
4165	4165	an integrated production operation" shall not include:
4166	4166	(A) Machinery and equipment used for nonproduction purposes,
4167	4167	including, but not limited to, machinery and equipment used for plant
4168	4168	security, fire prevention, first aid, accounting, administration, record
4169	4169	keeping, advertising, marketing, sales or other related activities, plant
4170	4170	cleaning, plant communications and employee work scheduling;
4171	4171	(B) machinery, equipment and tools used primarily in maintaining
4172	4172	and repairing any type of machinery and equipment or the building and
4173	4173	1
4174	4174	2
4175	4175	3
4176	4176	4
4177	4177	5
4178	4178	6
4179	4179	7
4180	4180	8
4181	4181	9
4182	4182	10
4183	4183	11
4184	4184	12
4185	4185	13
4186	4186	14
4187	4187	15
4188	4188	16
4189	4189	17
4190	4190	18
4191	4191	19
4192	4192	20
4193	4193	21
4194	4194	22
4195	4195	23
4196	4196	24
4197	4197	25
4198	4198	26
4199	4199	27
4200	4200	28
4201	4201	29
4202	4202	30
4203	4203	31
4204	4204	32
4205	4205	33
4206	4206	34
4207	4207	35
4208	4208	36
4209	4209	37
4210	4210	38
4211	4211	39
4212	4212	40
4213	4213	41
4214	4214	42
4215	4215	43 SB 171 50
4216	4216	plant;
4217	4217	(C) transportation, transmission and distribution equipment not
4218	4218	primarily used in a production, warehousing or material handling
4219	4219	operation at the plant or facility, including the means of conveyance of
4220	4220	natural gas, electricity, oil or water, and equipment related thereto, located
4221	4221	outside the plant or facility;
4222	4222	(D) office machines and equipment including computers and related
4223	4223	peripheral equipment not used directly and primarily to control or measure
4224	4224	the manufacturing process;
4225	4225	(E) furniture and other furnishings;
4226	4226	(F) buildings, other than exempt machinery and equipment that is
4227	4227	permanently affixed to or becomes a physical part of the building, and any
4228	4228	other part of real estate that is not otherwise exempt;
4229	4229	(G) building fixtures that are not integral to the manufacturing
4230	4230	operation, such as utility systems for heating, ventilation, air conditioning,
4231	4231	communications, plumbing or electrical;
4232	4232	(H) machinery and equipment used for general plant heating, cooling
4233	4233	and lighting;
4234	4234	(I) motor vehicles that are registered for operation on public
4235	4235	highways; or
4236	4236	(J) employee apparel, except safety and protective apparel that is
4237	4237	purchased by an employer and furnished gratuitously to employees who
4238	4238	are involved in production or research activities.
4239	4239	(6) Paragraphs (3) and (5) shall not be construed as exclusive listings
4240	4240	of the machinery and equipment that qualify or do not qualify as an
4241	4241	integral or essential part of an integrated production operation. When
4242	4242	machinery or equipment is used as an integral or essential part of
4243	4243	production operations part of the time and for nonproduction purposes at
4244	4244	other times, the primary use of the machinery or equipment shall
4245	4245	determine whether or not such machinery or equipment qualifies for
4246	4246	exemption.
4247	4247	(7) The secretary of revenue shall adopt rules and regulations
4248	4248	necessary to administer the provisions of this subsection;
4249	4249	(ll) all sales of educational materials purchased for distribution to the
4250	4250	public at no charge by a nonprofit corporation organized for the purpose of
4251	4251	encouraging, fostering and conducting programs for the improvement of
4252	4252	public health, except that for taxable years commencing after December
4253	4253	31, 2013, this subsection shall not apply to any sales of such materials
4254	4254	purchased by a nonprofit corporation which performs any abortion, as
4255	4255	defined in K.S.A. 65-6701, and amendments thereto;
4256	4256	(mm) all sales of seeds and tree seedlings; fertilizers, insecticides,
4257	4257	herbicides, germicides, pesticides and fungicides; and services, purchased
4258	4258	and used for the purpose of producing plants in order to prevent soil
4259	4259	1
4260	4260	2
4261	4261	3
4262	4262	4
4263	4263	5
4264	4264	6
4265	4265	7
4266	4266	8
4267	4267	9
4268	4268	10
4269	4269	11
4270	4270	12
4271	4271	13
4272	4272	14
4273	4273	15
4274	4274	16
4275	4275	17
4276	4276	18
4277	4277	19
4278	4278	20
4279	4279	21
4280	4280	22
4281	4281	23
4282	4282	24
4283	4283	25
4284	4284	26
4285	4285	27
4286	4286	28
4287	4287	29
4288	4288	30
4289	4289	31
4290	4290	32
4291	4291	33
4292	4292	34
4293	4293	35
4294	4294	36
4295	4295	37
4296	4296	38
4297	4297	39
4298	4298	40
4299	4299	41
4300	4300	42
4301	4301	43 SB 171 51
4302	4302	erosion on land devoted to agricultural use;
4303	4303	(nn) except as otherwise provided in this act, all sales of services
4304	4304	rendered by an advertising agency or licensed broadcast station or any
4305	4305	member, agent or employee thereof;
4306	4306	(oo) all sales of tangible personal property purchased by a community
4307	4307	action group or agency for the exclusive purpose of repairing or
4308	4308	weatherizing housing occupied by low-income individuals;
4309	4309	(pp) all sales of drill bits and explosives actually utilized in the
4310	4310	exploration and production of oil or gas;
4311	4311	(qq) all sales of tangible personal property and services purchased by
4312	4312	a nonprofit museum or historical society or any combination thereof,
4313	4313	including a nonprofit organization that is organized for the purpose of
4314	4314	stimulating public interest in the exploration of space by providing
4315	4315	educational information, exhibits and experiences, that is exempt from
4316	4316	federal income taxation pursuant to section 501(c)(3) of the federal
4317	4317	internal revenue code of 1986;
4318	4318	(rr) all sales of tangible personal property that will admit the
4319	4319	purchaser thereof to any annual event sponsored by a nonprofit
4320	4320	organization that is exempt from federal income taxation pursuant to
4321	4321	section 501(c)(3) of the federal internal revenue code of 1986, except that
4322	4322	for taxable years commencing after December 31, 2013, this subsection
4323	4323	shall not apply to any sales of such tangible personal property purchased
4324	4324	by a nonprofit organization which performs any abortion, as defined in
4325	4325	K.S.A. 65-6701, and amendments thereto;
4326	4326	(ss) all sales of tangible personal property and services purchased by
4327	4327	a public broadcasting station licensed by the federal communications
4328	4328	commission as a noncommercial educational television or radio station;
4329	4329	(tt) all sales of tangible personal property and services purchased by
4330	4330	or on behalf of a not-for-profit corporation that is exempt from federal
4331	4331	income taxation pursuant to section 501(c)(3) of the federal internal
4332	4332	revenue code of 1986, for the sole purpose of constructing a Kansas
4333	4333	Korean War memorial;
4334	4334	(uu) all sales of tangible personal property and services purchased by
4335	4335	or on behalf of any rural volunteer fire-fighting organization for use
4336	4336	exclusively in the performance of its duties and functions;
4337	4337	(vv) all sales of tangible personal property purchased by any of the
4338	4338	following organizations that are exempt from federal income taxation
4339	4339	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
4340	4340	for the following purposes, and all sales of any such property by or on
4341	4341	behalf of any such organization for any such purpose:
4342	4342	(1) The American heart association, Kansas affiliate, inc. for the
4343	4343	purposes of providing education, training, certification in emergency
4344	4344	cardiac care, research and other related services to reduce disability and
4345	4345	1
4346	4346	2
4347	4347	3
4348	4348	4
4349	4349	5
4350	4350	6
4351	4351	7
4352	4352	8
4353	4353	9
4354	4354	10
4355	4355	11
4356	4356	12
4357	4357	13
4358	4358	14
4359	4359	15
4360	4360	16
4361	4361	17
4362	4362	18
4363	4363	19
4364	4364	20
4365	4365	21
4366	4366	22
4367	4367	23
4368	4368	24
4369	4369	25
4370	4370	26
4371	4371	27
4372	4372	28
4373	4373	29
4374	4374	30
4375	4375	31
4376	4376	32
4377	4377	33
4378	4378	34
4379	4379	35
4380	4380	36
4381	4381	37
4382	4382	38
4383	4383	39
4384	4384	40
4385	4385	41
4386	4386	42
4387	4387	43 SB 171 52
4388	4388	death from cardiovascular diseases and stroke;
4389	4389	(2) the Kansas alliance for the mentally ill, inc. for the purpose of
4390	4390	advocacy for persons with mental illness and to education, research and
4391	4391	support for their families;
4392	4392	(3) the Kansas mental illness awareness council for the purposes of
4393	4393	advocacy for persons who are mentally ill and for education, research and
4394	4394	support for them and their families;
4395	4395	(4) the American diabetes association Kansas affiliate, inc. for the
4396	4396	purpose of eliminating diabetes through medical research, public education
4397	4397	focusing on disease prevention and education, patient education including
4398	4398	information on coping with diabetes, and professional education and
4399	4399	training;
4400	4400	(5) the American lung association of Kansas, inc. for the purpose of
4401	4401	eliminating all lung diseases through medical research, public education
4402	4402	including information on coping with lung diseases, professional education
4403	4403	and training related to lung disease and other related services to reduce the
4404	4404	incidence of disability and death due to lung disease;
4405	4405	(6) the Kansas chapters of the Alzheimer's disease and related
4406	4406	disorders association, inc. for the purpose of providing assistance and
4407	4407	support to persons in Kansas with Alzheimer's disease, and their families
4408	4408	and caregivers;
4409	4409	(7) the Kansas chapters of the Parkinson's disease association for the
4410	4410	purpose of eliminating Parkinson's disease through medical research and
4411	4411	public and professional education related to such disease;
4412	4412	(8) the national kidney foundation of Kansas and western Missouri
4413	4413	for the purpose of eliminating kidney disease through medical research
4414	4414	and public and private education related to such disease;
4415	4415	(9) the heartstrings community foundation for the purpose of
4416	4416	providing training, employment and activities for adults with
4417	4417	developmental disabilities;
4418	4418	(10) the cystic fibrosis foundation, heart of America chapter, for the
4419	4419	purposes of assuring the development of the means to cure and control
4420	4420	cystic fibrosis and improving the quality of life for those with the disease;
4421	4421	(11) the spina bifida association of Kansas for the purpose of
4422	4422	providing financial, educational and practical aid to families and
4423	4423	individuals with spina bifida. Such aid includes, but is not limited to,
4424	4424	funding for medical devices, counseling and medical educational
4425	4425	opportunities;
4426	4426	(12) the CHWC, Inc., for the purpose of rebuilding urban core
4427	4427	neighborhoods through the construction of new homes, acquiring and
4428	4428	renovating existing homes and other related activities, and promoting
4429	4429	economic development in such neighborhoods;
4430	4430	(13) the cross-lines cooperative council for the purpose of providing
4431	4431	1
4432	4432	2
4433	4433	3
4434	4434	4
4435	4435	5
4436	4436	6
4437	4437	7
4438	4438	8
4439	4439	9
4440	4440	10
4441	4441	11
4442	4442	12
4443	4443	13
4444	4444	14
4445	4445	15
4446	4446	16
4447	4447	17
4448	4448	18
4449	4449	19
4450	4450	20
4451	4451	21
4452	4452	22
4453	4453	23
4454	4454	24
4455	4455	25
4456	4456	26
4457	4457	27
4458	4458	28
4459	4459	29
4460	4460	30
4461	4461	31
4462	4462	32
4463	4463	33
4464	4464	34
4465	4465	35
4466	4466	36
4467	4467	37
4468	4468	38
4469	4469	39
4470	4470	40
4471	4471	41
4472	4472	42
4473	4473	43 SB 171 53
4474	4474	social services to low income individuals and families;
4475	4475	(14) the dreams work, inc., for the purpose of providing young adult
4476	4476	day services to individuals with developmental disabilities and assisting
4477	4477	families in avoiding institutional or nursing home care for a
4478	4478	developmentally disabled member of their family;
4479	4479	(15) the KSDS, Inc., for the purpose of promoting the independence
4480	4480	and inclusion of people with disabilities as fully participating and
4481	4481	contributing members of their communities and society through the
4482	4482	training and providing of guide and service dogs to people with
4483	4483	disabilities, and providing disability education and awareness to the
4484	4484	general public;
4485	4485	(16) the lyme association of greater Kansas City, Inc., for the purpose
4486	4486	of providing support to persons with lyme disease and public education
4487	4487	relating to the prevention, treatment and cure of lyme disease;
4488	4488	(17) the dream factory, inc., for the purpose of granting the dreams of
4489	4489	children with critical and chronic illnesses;
4490	4490	(18) the Ottawa Suzuki strings, inc., for the purpose of providing
4491	4491	students and families with education and resources necessary to enable
4492	4492	each child to develop fine character and musical ability to the fullest
4493	4493	potential;
4494	4494	(19) the international association of lions clubs for the purpose of
4495	4495	creating and fostering a spirit of understanding among all people for
4496	4496	humanitarian needs by providing voluntary services through community
4497	4497	involvement and international cooperation;
4498	4498	(20) the Johnson county young matrons, inc., for the purpose of
4499	4499	promoting a positive future for members of the community through
4500	4500	volunteerism, financial support and education through the efforts of an all
4501	4501	volunteer organization;
4502	4502	(21) the American cancer society, inc., for the purpose of eliminating
4503	4503	cancer as a major health problem by preventing cancer, saving lives and
4504	4504	diminishing suffering from cancer, through research, education, advocacy
4505	4505	and service;
4506	4506	(22) the community services of Shawnee, inc., for the purpose of
4507	4507	providing food and clothing to those in need;
4508	4508	(23) the angel babies association, for the purpose of providing
4509	4509	assistance, support and items of necessity to teenage mothers and their
4510	4510	babies; and
4511	4511	(24) the Kansas fairgrounds foundation for the purpose of the
4512	4512	preservation, renovation and beautification of the Kansas state fairgrounds;
4513	4513	(ww) all sales of tangible personal property purchased by the habitat
4514	4514	for humanity for the exclusive use of being incorporated within a housing
4515	4515	project constructed by such organization;
4516	4516	(xx) all sales of tangible personal property and services purchased by
4517	4517	1
4518	4518	2
4519	4519	3
4520	4520	4
4521	4521	5
4522	4522	6
4523	4523	7
4524	4524	8
4525	4525	9
4526	4526	10
4527	4527	11
4528	4528	12
4529	4529	13
4530	4530	14
4531	4531	15
4532	4532	16
4533	4533	17
4534	4534	18
4535	4535	19
4536	4536	20
4537	4537	21
4538	4538	22
4539	4539	23
4540	4540	24
4541	4541	25
4542	4542	26
4543	4543	27
4544	4544	28
4545	4545	29
4546	4546	30
4547	4547	31
4548	4548	32
4549	4549	33
4550	4550	34
4551	4551	35
4552	4552	36
4553	4553	37
4554	4554	38
4555	4555	39
4556	4556	40
4557	4557	41
4558	4558	42
4559	4559	43 SB 171 54
4560	4560	a nonprofit zoo that is exempt from federal income taxation pursuant to
4561	4561	section 501(c)(3) of the federal internal revenue code of 1986, or on behalf
4562	4562	of such zoo by an entity itself exempt from federal income taxation
4563	4563	pursuant to section 501(c)(3) of the federal internal revenue code of 1986
4564	4564	contracted with to operate such zoo and all sales of tangible personal
4565	4565	property or services purchased by a contractor for the purpose of
4566	4566	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
4567	4567	furnishing or remodeling facilities for any nonprofit zoo that would be
4568	4568	exempt from taxation under the provisions of this section if purchased
4569	4569	directly by such nonprofit zoo or the entity operating such zoo. Nothing in
4570	4570	this subsection shall be deemed to exempt the purchase of any construction
4571	4571	machinery, equipment or tools used in the constructing, equipping,
4572	4572	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
4573	4573	facilities for any nonprofit zoo. When any nonprofit zoo shall contract for
4574	4574	the purpose of constructing, equipping, reconstructing, maintaining,
4575	4575	repairing, enlarging, furnishing or remodeling facilities, it shall obtain
4576	4576	from the state and furnish to the contractor an exemption certificate for the
4577	4577	project involved, and the contractor may purchase materials for
4578	4578	incorporation in such project. The contractor shall furnish the number of
4579	4579	such certificate to all suppliers from whom such purchases are made, and
4580	4580	such suppliers shall execute invoices covering the same bearing the
4581	4581	number of such certificate. Upon completion of the project the contractor
4582	4582	shall furnish to the nonprofit zoo concerned a sworn statement, on a form
4583	4583	to be provided by the director of taxation, that all purchases so made were
4584	4584	entitled to exemption under this subsection. All invoices shall be held by
4585	4585	the contractor for a period of five years and shall be subject to audit by the
4586	4586	director of taxation. If any materials purchased under such a certificate are
4587	4587	found not to have been incorporated in the building or other project or not
4588	4588	to have been returned for credit or the sales or compensating tax otherwise
4589	4589	imposed upon such materials that will not be so incorporated in the
4590	4590	building or other project reported and paid by such contractor to the
4591	4591	director of taxation not later than the 20
4592	4592	th
4593	4593	day of the month following the
4594	4594	close of the month in which it shall be determined that such materials will
4595	4595	not be used for the purpose for which such certificate was issued, the
4596	4596	nonprofit zoo concerned shall be liable for tax on all materials purchased
4597	4597	for the project, and upon payment thereof it may recover the same from
4598	4598	the contractor together with reasonable attorney fees. Any contractor or
4599	4599	any agent, employee or subcontractor thereof, who shall use or otherwise
4600	4600	dispose of any materials purchased under such a certificate for any purpose
4601	4601	other than that for which such a certificate is issued without the payment
4602	4602	of the sales or compensating tax otherwise imposed upon such materials,
4603	4603	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
4604	4604	subject to the penalties provided for in K.S.A. 79-3615(h), and
4605	4605	1
4606	4606	2
4607	4607	3
4608	4608	4
4609	4609	5
4610	4610	6
4611	4611	7
4612	4612	8
4613	4613	9
4614	4614	10
4615	4615	11
4616	4616	12
4617	4617	13
4618	4618	14
4619	4619	15
4620	4620	16
4621	4621	17
4622	4622	18
4623	4623	19
4624	4624	20
4625	4625	21
4626	4626	22
4627	4627	23
4628	4628	24
4629	4629	25
4630	4630	26
4631	4631	27
4632	4632	28
4633	4633	29
4634	4634	30
4635	4635	31
4636	4636	32
4637	4637	33
4638	4638	34
4639	4639	35
4640	4640	36
4641	4641	37
4642	4642	38
4643	4643	39
4644	4644	40
4645	4645	41
4646	4646	42
4647	4647	43 SB 171 55
4648	4648	amendments thereto;
4649	4649	(yy) all sales of tangible personal property and services purchased by
4650	4650	a parent-teacher association or organization, and all sales of tangible
4651	4651	personal property by or on behalf of such association or organization;
4652	4652	(zz) all sales of machinery and equipment purchased by over-the-air,
4653	4653	free access radio or television station that is used directly and primarily for
4654	4654	the purpose of producing a broadcast signal or is such that the failure of
4655	4655	the machinery or equipment to operate would cause broadcasting to cease.
4656	4656	For purposes of this subsection, machinery and equipment shall include,
4657	4657	but not be limited to, that required by rules and regulations of the federal
4658	4658	communications commission, and all sales of electricity which are
4659	4659	essential or necessary for the purpose of producing a broadcast signal or is
4660	4660	such that the failure of the electricity would cause broadcasting to cease;
4661	4661	(aaa) all sales of tangible personal property and services purchased by
4662	4662	a religious organization that is exempt from federal income taxation
4663	4663	pursuant to section 501(c)(3) of the federal internal revenue code, and used
4664	4664	exclusively for religious purposes, and all sales of tangible personal
4665	4665	property or services purchased by a contractor for the purpose of
4666	4666	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
4667	4667	furnishing or remodeling facilities for any such organization that would be
4668	4668	exempt from taxation under the provisions of this section if purchased
4669	4669	directly by such organization. Nothing in this subsection shall be deemed
4670	4670	to exempt the purchase of any construction machinery, equipment or tools
4671	4671	used in the constructing, equipping, reconstructing, maintaining, repairing,
4672	4672	enlarging, furnishing or remodeling facilities for any such organization.
4673	4673	When any such organization shall contract for the purpose of constructing,
4674	4674	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
4675	4675	remodeling facilities, it shall obtain from the state and furnish to the
4676	4676	contractor an exemption certificate for the project involved, and the
4677	4677	contractor may purchase materials for incorporation in such project. The
4678	4678	contractor shall furnish the number of such certificate to all suppliers from
4679	4679	whom such purchases are made, and such suppliers shall execute invoices
4680	4680	covering the same bearing the number of such certificate. Upon
4681	4681	completion of the project the contractor shall furnish to such organization
4682	4682	concerned a sworn statement, on a form to be provided by the director of
4683	4683	taxation, that all purchases so made were entitled to exemption under this
4684	4684	subsection. All invoices shall be held by the contractor for a period of five
4685	4685	years and shall be subject to audit by the director of taxation. If any
4686	4686	materials purchased under such a certificate are found not to have been
4687	4687	incorporated in the building or other project or not to have been returned
4688	4688	for credit or the sales or compensating tax otherwise imposed upon such
4689	4689	materials that will not be so incorporated in the building or other project
4690	4690	reported and paid by such contractor to the director of taxation not later
4691	4691	1
4692	4692	2
4693	4693	3
4694	4694	4
4695	4695	5
4696	4696	6
4697	4697	7
4698	4698	8
4699	4699	9
4700	4700	10
4701	4701	11
4702	4702	12
4703	4703	13
4704	4704	14
4705	4705	15
4706	4706	16
4707	4707	17
4708	4708	18
4709	4709	19
4710	4710	20
4711	4711	21
4712	4712	22
4713	4713	23
4714	4714	24
4715	4715	25
4716	4716	26
4717	4717	27
4718	4718	28
4719	4719	29
4720	4720	30
4721	4721	31
4722	4722	32
4723	4723	33
4724	4724	34
4725	4725	35
4726	4726	36
4727	4727	37
4728	4728	38
4729	4729	39
4730	4730	40
4731	4731	41
4732	4732	42
4733	4733	43 SB 171 56
4734	4734	than the 20
4735	4735	th
4736	4736	day of the month following the close of the month in which it
4737	4737	shall be determined that such materials will not be used for the purpose for
4738	4738	which such certificate was issued, such organization concerned shall be
4739	4739	liable for tax on all materials purchased for the project, and upon payment
4740	4740	thereof it may recover the same from the contractor together with
4741	4741	reasonable attorney fees. Any contractor or any agent, employee or
4742	4742	subcontractor thereof, who shall use or otherwise dispose of any materials
4743	4743	purchased under such a certificate for any purpose other than that for
4744	4744	which such a certificate is issued without the payment of the sales or
4745	4745	compensating tax otherwise imposed upon such materials, shall be guilty
4746	4746	of a misdemeanor and, upon conviction therefor, shall be subject to the
4747	4747	penalties provided for in K.S.A. 79-3615(h), and amendments thereto.
4748	4748	Sales tax paid on and after July 1, 1998, but prior to the effective date of
4749	4749	this act upon the gross receipts received from any sale exempted by the
4750	4750	amendatory provisions of this subsection shall be refunded. Each claim for
4751	4751	a sales tax refund shall be verified and submitted to the director of taxation
4752	4752	upon forms furnished by the director and shall be accompanied by any
4753	4753	additional documentation required by the director. The director shall
4754	4754	review each claim and shall refund that amount of sales tax paid as
4755	4755	determined under the provisions of this subsection. All refunds shall be
4756	4756	paid from the sales tax refund fund upon warrants of the director of
4757	4757	accounts and reports pursuant to vouchers approved by the director or the
4758	4758	director's designee;
4759	4759	(bbb) all sales of food for human consumption by an organization that
4760	4760	is exempt from federal income taxation pursuant to section 501(c)(3) of
4761	4761	the federal internal revenue code of 1986, pursuant to a food distribution
4762	4762	program that offers such food at a price below cost in exchange for the
4763	4763	performance of community service by the purchaser thereof;
4764	4764	(ccc) on and after July 1, 1999, all sales of tangible personal property
4765	4765	and services purchased by a primary care clinic or health center the
4766	4766	primary purpose of which is to provide services to medically underserved
4767	4767	individuals and families, and that is exempt from federal income taxation
4768	4768	pursuant to section 501(c)(3) of the federal internal revenue code, and all
4769	4769	sales of tangible personal property or services purchased by a contractor
4770	4770	for the purpose of constructing, equipping, reconstructing, maintaining,
4771	4771	repairing, enlarging, furnishing or remodeling facilities for any such clinic
4772	4772	or center that would be exempt from taxation under the provisions of this
4773	4773	section if purchased directly by such clinic or center, except that for
4774	4774	taxable years commencing after December 31, 2013, this subsection shall
4775	4775	not apply to any sales of such tangible personal property and services
4776	4776	purchased by a primary care clinic or health center which performs any
4777	4777	abortion, as defined in K.S.A. 65-6701, and amendments thereto. Nothing
4778	4778	in this subsection shall be deemed to exempt the purchase of any
4779	4779	1
4780	4780	2
4781	4781	3
4782	4782	4
4783	4783	5
4784	4784	6
4785	4785	7
4786	4786	8
4787	4787	9
4788	4788	10
4789	4789	11
4790	4790	12
4791	4791	13
4792	4792	14
4793	4793	15
4794	4794	16
4795	4795	17
4796	4796	18
4797	4797	19
4798	4798	20
4799	4799	21
4800	4800	22
4801	4801	23
4802	4802	24
4803	4803	25
4804	4804	26
4805	4805	27
4806	4806	28
4807	4807	29
4808	4808	30
4809	4809	31
4810	4810	32
4811	4811	33
4812	4812	34
4813	4813	35
4814	4814	36
4815	4815	37
4816	4816	38
4817	4817	39
4818	4818	40
4819	4819	41
4820	4820	42
4821	4821	43 SB 171 57
4822	4822	construction machinery, equipment or tools used in the constructing,
4823	4823	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
4824	4824	remodeling facilities for any such clinic or center. When any such clinic or
4825	4825	center shall contract for the purpose of constructing, equipping,
4826	4826	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
4827	4827	facilities, it shall obtain from the state and furnish to the contractor an
4828	4828	exemption certificate for the project involved, and the contractor may
4829	4829	purchase materials for incorporation in such project. The contractor shall
4830	4830	furnish the number of such certificate to all suppliers from whom such
4831	4831	purchases are made, and such suppliers shall execute invoices covering the
4832	4832	same bearing the number of such certificate. Upon completion of the
4833	4833	project the contractor shall furnish to such clinic or center concerned a
4834	4834	sworn statement, on a form to be provided by the director of taxation, that
4835	4835	all purchases so made were entitled to exemption under this subsection.
4836	4836	All invoices shall be held by the contractor for a period of five years and
4837	4837	shall be subject to audit by the director of taxation. If any materials
4838	4838	purchased under such a certificate are found not to have been incorporated
4839	4839	in the building or other project or not to have been returned for credit or
4840	4840	the sales or compensating tax otherwise imposed upon such materials that
4841	4841	will not be so incorporated in the building or other project reported and
4842	4842	paid by such contractor to the director of taxation not later than the 20
4843	4843	th
4844	4844	day of the month following the close of the month in which it shall be
4845	4845	determined that such materials will not be used for the purpose for which
4846	4846	such certificate was issued, such clinic or center concerned shall be liable
4847	4847	for tax on all materials purchased for the project, and upon payment
4848	4848	thereof it may recover the same from the contractor together with
4849	4849	reasonable attorney fees. Any contractor or any agent, employee or
4850	4850	subcontractor thereof, who shall use or otherwise dispose of any materials
4851	4851	purchased under such a certificate for any purpose other than that for
4852	4852	which such a certificate is issued without the payment of the sales or
4853	4853	compensating tax otherwise imposed upon such materials, shall be guilty
4854	4854	of a misdemeanor and, upon conviction therefor, shall be subject to the
4855	4855	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
4856	4856	(ddd) on and after January 1, 1999, and before January 1, 2000, all
4857	4857	sales of materials and services purchased by any class II or III railroad as
4858	4858	classified by the federal surface transportation board for the construction,
4859	4859	renovation, repair or replacement of class II or III railroad track and
4860	4860	facilities used directly in interstate commerce. In the event any such track
4861	4861	or facility for which materials and services were purchased sales tax
4862	4862	exempt is not operational for five years succeeding the allowance of such
4863	4863	exemption, the total amount of sales tax that would have been payable
4864	4864	except for the operation of this subsection shall be recouped in accordance
4865	4865	with rules and regulations adopted for such purpose by the secretary of
4866	4866	1
4867	4867	2
4868	4868	3
4869	4869	4
4870	4870	5
4871	4871	6
4872	4872	7
4873	4873	8
4874	4874	9
4875	4875	10
4876	4876	11
4877	4877	12
4878	4878	13
4879	4879	14
4880	4880	15
4881	4881	16
4882	4882	17
4883	4883	18
4884	4884	19
4885	4885	20
4886	4886	21
4887	4887	22
4888	4888	23
4889	4889	24
4890	4890	25
4891	4891	26
4892	4892	27
4893	4893	28
4894	4894	29
4895	4895	30
4896	4896	31
4897	4897	32
4898	4898	33
4899	4899	34
4900	4900	35
4901	4901	36
4902	4902	37
4903	4903	38
4904	4904	39
4905	4905	40
4906	4906	41
4907	4907	42
4908	4908	43 SB 171 58
4909	4909	revenue;
4910	4910	(eee) on and after January 1, 1999, and before January 1, 2001, all
4911	4911	sales of materials and services purchased for the original construction,
4912	4912	reconstruction, repair or replacement of grain storage facilities, including
4913	4913	railroad sidings providing access thereto;
4914	4914	(fff) all sales of material handling equipment, racking systems and
4915	4915	other related machinery and equipment that is used for the handling,
4916	4916	movement or storage of tangible personal property in a warehouse or
4917	4917	distribution facility in this state; all sales of installation, repair and
4918	4918	maintenance services performed on such machinery and equipment; and
4919	4919	all sales of repair and replacement parts for such machinery and
4920	4920	equipment. For purposes of this subsection, a warehouse or distribution
4921	4921	facility means a single, fixed location that consists of buildings or
4922	4922	structures in a contiguous area where storage or distribution operations are
4923	4923	conducted that are separate and apart from the business' retail operations,
4924	4924	if any, and that do not otherwise qualify for exemption as occurring at a
4925	4925	manufacturing or processing plant or facility. Material handling and
4926	4926	storage equipment shall include aeration, dust control, cleaning, handling
4927	4927	and other such equipment that is used in a public grain warehouse or other
4928	4928	commercial grain storage facility, whether used for grain handling, grain
4929	4929	storage, grain refining or processing, or other grain treatment operation;
4930	4930	(ggg) all sales of tangible personal property and services purchased
4931	4931	by or on behalf of the Kansas academy of science, which is exempt from
4932	4932	federal income taxation pursuant to section 501(c)(3) of the federal
4933	4933	internal revenue code of 1986, and used solely by such academy for the
4934	4934	preparation, publication and dissemination of education materials;
4935	4935	(hhh) all sales of tangible personal property and services purchased
4936	4936	by or on behalf of all domestic violence shelters that are member agencies
4937	4937	of the Kansas coalition against sexual and domestic violence;
4938	4938	(iii) all sales of personal property and services purchased by an
4939	4939	organization that is exempt from federal income taxation pursuant to
4940	4940	section 501(c)(3) of the federal internal revenue code of 1986, and such
4941	4941	personal property and services are used by any such organization in the
4942	4942	collection, storage and distribution of food products to nonprofit
4943	4943	organizations that distribute such food products to persons pursuant to a
4944	4944	food distribution program on a charitable basis without fee or charge, and
4945	4945	all sales of tangible personal property or services purchased by a
4946	4946	contractor for the purpose of constructing, equipping, reconstructing,
4947	4947	maintaining, repairing, enlarging, furnishing or remodeling facilities used
4948	4948	for the collection and storage of such food products for any such
4949	4949	organization which is exempt from federal income taxation pursuant to
4950	4950	section 501(c)(3) of the federal internal revenue code of 1986, that would
4951	4951	be exempt from taxation under the provisions of this section if purchased
4952	4952	1
4953	4953	2
4954	4954	3
4955	4955	4
4956	4956	5
4957	4957	6
4958	4958	7
4959	4959	8
4960	4960	9
4961	4961	10
4962	4962	11
4963	4963	12
4964	4964	13
4965	4965	14
4966	4966	15
4967	4967	16
4968	4968	17
4969	4969	18
4970	4970	19
4971	4971	20
4972	4972	21
4973	4973	22
4974	4974	23
4975	4975	24
4976	4976	25
4977	4977	26
4978	4978	27
4979	4979	28
4980	4980	29
4981	4981	30
4982	4982	31
4983	4983	32
4984	4984	33
4985	4985	34
4986	4986	35
4987	4987	36
4988	4988	37
4989	4989	38
4990	4990	39
4991	4991	40
4992	4992	41
4993	4993	42
4994	4994	43 SB 171 59
4995	4995	directly by such organization. Nothing in this subsection shall be deemed
4996	4996	to exempt the purchase of any construction machinery, equipment or tools
4997	4997	used in the constructing, equipping, reconstructing, maintaining, repairing,
4998	4998	enlarging, furnishing or remodeling facilities for any such organization.
4999	4999	When any such organization shall contract for the purpose of constructing,
5000	5000	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
5001	5001	remodeling facilities, it shall obtain from the state and furnish to the
5002	5002	contractor an exemption certificate for the project involved, and the
5003	5003	contractor may purchase materials for incorporation in such project. The
5004	5004	contractor shall furnish the number of such certificate to all suppliers from
5005	5005	whom such purchases are made, and such suppliers shall execute invoices
5006	5006	covering the same bearing the number of such certificate. Upon
5007	5007	completion of the project the contractor shall furnish to such organization
5008	5008	concerned a sworn statement, on a form to be provided by the director of
5009	5009	taxation, that all purchases so made were entitled to exemption under this
5010	5010	subsection. All invoices shall be held by the contractor for a period of five
5011	5011	years and shall be subject to audit by the director of taxation. If any
5012	5012	materials purchased under such a certificate are found not to have been
5013	5013	incorporated in such facilities or not to have been returned for credit or the
5014	5014	sales or compensating tax otherwise imposed upon such materials that will
5015	5015	not be so incorporated in such facilities reported and paid by such
5016	5016	contractor to the director of taxation not later than the 20
5017	5017	th
5018	5018	day of the
5019	5019	month following the close of the month in which it shall be determined
5020	5020	that such materials will not be used for the purpose for which such
5021	5021	certificate was issued, such organization concerned shall be liable for tax
5022	5022	on all materials purchased for the project, and upon payment thereof it
5023	5023	may recover the same from the contractor together with reasonable
5024	5024	attorney fees. Any contractor or any agent, employee or subcontractor
5025	5025	thereof, who shall use or otherwise dispose of any materials purchased
5026	5026	under such a certificate for any purpose other than that for which such a
5027	5027	certificate is issued without the payment of the sales or compensating tax
5028	5028	otherwise imposed upon such materials, shall be guilty of a misdemeanor
5029	5029	and, upon conviction therefor, shall be subject to the penalties provided for
5030	5030	in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and after
5031	5031	July 1, 2005, but prior to the effective date of this act upon the gross
5032	5032	receipts received from any sale exempted by the amendatory provisions of
5033	5033	this subsection shall be refunded. Each claim for a sales tax refund shall be
5034	5034	verified and submitted to the director of taxation upon forms furnished by
5035	5035	the director and shall be accompanied by any additional documentation
5036	5036	required by the director. The director shall review each claim and shall
5037	5037	refund that amount of sales tax paid as determined under the provisions of
5038	5038	this subsection. All refunds shall be paid from the sales tax refund fund
5039	5039	upon warrants of the director of accounts and reports pursuant to vouchers
5040	5040	1
5041	5041	2
5042	5042	3
5043	5043	4
5044	5044	5
5045	5045	6
5046	5046	7
5047	5047	8
5048	5048	9
5049	5049	10
5050	5050	11
5051	5051	12
5052	5052	13
5053	5053	14
5054	5054	15
5055	5055	16
5056	5056	17
5057	5057	18
5058	5058	19
5059	5059	20
5060	5060	21
5061	5061	22
5062	5062	23
5063	5063	24
5064	5064	25
5065	5065	26
5066	5066	27
5067	5067	28
5068	5068	29
5069	5069	30
5070	5070	31
5071	5071	32
5072	5072	33
5073	5073	34
5074	5074	35
5075	5075	36
5076	5076	37
5077	5077	38
5078	5078	39
5079	5079	40
5080	5080	41
5081	5081	42
5082	5082	43 SB 171 60
5083	5083	approved by the director or the director's designee;
5084	5084	(jjj) all sales of dietary supplements dispensed pursuant to a
5085	5085	prescription order by a licensed practitioner or a mid-level practitioner as
5086	5086	defined by K.S.A. 65-1626, and amendments thereto. As used in this
5087	5087	subsection, "dietary supplement" means any product, other than tobacco,
5088	5088	intended to supplement the diet that: (1) Contains one or more of the
5089	5089	following dietary ingredients: A vitamin, a mineral, an herb or other
5090	5090	botanical, an amino acid, a dietary substance for use by humans to
5091	5091	supplement the diet by increasing the total dietary intake or a concentrate,
5092	5092	metabolite, constituent, extract or combination of any such ingredient; (2)
5093	5093	is intended for ingestion in tablet, capsule, powder, softgel, gelcap or
5094	5094	liquid form, or if not intended for ingestion, in such a form, is not
5095	5095	represented as conventional food and is not represented for use as a sole
5096	5096	item of a meal or of the diet; and (3) is required to be labeled as a dietary
5097	5097	supplement, identifiable by the supplemental facts box found on the label
5098	5098	and as required pursuant to 21 C.F.R. § 101.36;
5099	5099	(lll) all sales of tangible personal property and services purchased by
5100	5100	special olympics Kansas, inc. for the purpose of providing year-round
5101	5101	sports training and athletic competition in a variety of olympic-type sports
5102	5102	for individuals with intellectual disabilities by giving them continuing
5103	5103	opportunities to develop physical fitness, demonstrate courage, experience
5104	5104	joy and participate in a sharing of gifts, skills and friendship with their
5105	5105	families, other special olympics athletes and the community, and activities
5106	5106	provided or sponsored by such organization, and all sales of tangible
5107	5107	personal property by or on behalf of any such organization;
5108	5108	(mmm) all sales of tangible personal property purchased by or on
5109	5109	behalf of the Marillac center, inc., which is exempt from federal income
5110	5110	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
5111	5111	for the purpose of providing psycho-social-biological and special
5112	5112	education services to children, and all sales of any such property by or on
5113	5113	behalf of such organization for such purpose;
5114	5114	(nnn) all sales of tangible personal property and services purchased
5115	5115	by the west Sedgwick county-sunrise rotary club and sunrise charitable
5116	5116	fund for the purpose of constructing a boundless playground which is an
5117	5117	integrated, barrier free and developmentally advantageous play
5118	5118	environment for children of all abilities and disabilities;
5119	5119	(ooo) all sales of tangible personal property by or on behalf of a
5120	5120	public library serving the general public and supported in whole or in part
5121	5121	with tax money or a not-for-profit organization whose purpose is to raise
5122	5122	funds for or provide services or other benefits to any such public library;
5123	5123	(ppp) all sales of tangible personal property and services purchased
5124	5124	by or on behalf of a homeless shelter that is exempt from federal income
5125	5125	taxation pursuant to section 501(c)(3) of the federal income tax code of
5126	5126	1
5127	5127	2
5128	5128	3
5129	5129	4
5130	5130	5
5131	5131	6
5132	5132	7
5133	5133	8
5134	5134	9
5135	5135	10
5136	5136	11
5137	5137	12
5138	5138	13
5139	5139	14
5140	5140	15
5141	5141	16
5142	5142	17
5143	5143	18
5144	5144	19
5145	5145	20
5146	5146	21
5147	5147	22
5148	5148	23
5149	5149	24
5150	5150	25
5151	5151	26
5152	5152	27
5153	5153	28
5154	5154	29
5155	5155	30
5156	5156	31
5157	5157	32
5158	5158	33
5159	5159	34
5160	5160	35
5161	5161	36
5162	5162	37
5163	5163	38
5164	5164	39
5165	5165	40
5166	5166	41
5167	5167	42
5168	5168	43 SB 171 61
5169	5169	1986, and used by any such homeless shelter to provide emergency and
5170	5170	transitional housing for individuals and families experiencing
5171	5171	homelessness, and all sales of any such property by or on behalf of any
5172	5172	such homeless shelter for any such purpose;
5173	5173	(qqq) all sales of tangible personal property and services purchased
5174	5174	by TLC for children and families, inc., hereinafter referred to as TLC,
5175	5175	which is exempt from federal income taxation pursuant to section 501(c)
5176	5176	(3) of the federal internal revenue code of 1986, and such property and
5177	5177	services are used for the purpose of providing emergency shelter and
5178	5178	treatment for abused and neglected children as well as meeting additional
5179	5179	critical needs for children, juveniles and family, and all sales of any such
5180	5180	property by or on behalf of TLC for any such purpose; and all sales of
5181	5181	tangible personal property or services purchased by a contractor for the
5182	5182	purpose of constructing, maintaining, repairing, enlarging, furnishing or
5183	5183	remodeling facilities for the operation of services for TLC for any such
5184	5184	purpose that would be exempt from taxation under the provisions of this
5185	5185	section if purchased directly by TLC. Nothing in this subsection shall be
5186	5186	deemed to exempt the purchase of any construction machinery, equipment
5187	5187	or tools used in the constructing, maintaining, repairing, enlarging,
5188	5188	furnishing or remodeling such facilities for TLC. When TLC contracts for
5189	5189	the purpose of constructing, maintaining, repairing, enlarging, furnishing
5190	5190	or remodeling such facilities, it shall obtain from the state and furnish to
5191	5191	the contractor an exemption certificate for the project involved, and the
5192	5192	contractor may purchase materials for incorporation in such project. The
5193	5193	contractor shall furnish the number of such certificate to all suppliers from
5194	5194	whom such purchases are made, and such suppliers shall execute invoices
5195	5195	covering the same bearing the number of such certificate. Upon
5196	5196	completion of the project the contractor shall furnish to TLC a sworn
5197	5197	statement, on a form to be provided by the director of taxation, that all
5198	5198	purchases so made were entitled to exemption under this subsection. All
5199	5199	invoices shall be held by the contractor for a period of five years and shall
5200	5200	be subject to audit by the director of taxation. If any materials purchased
5201	5201	under such a certificate are found not to have been incorporated in the
5202	5202	building or other project or not to have been returned for credit or the sales
5203	5203	or compensating tax otherwise imposed upon such materials that will not
5204	5204	be so incorporated in the building or other project reported and paid by
5205	5205	such contractor to the director of taxation not later than the 20
5206	5206	th
5207	5207	day of the
5208	5208	month following the close of the month in which it shall be determined
5209	5209	that such materials will not be used for the purpose for which such
5210	5210	certificate was issued, TLC shall be liable for tax on all materials
5211	5211	purchased for the project, and upon payment thereof it may recover the
5212	5212	same from the contractor together with reasonable attorney fees. Any
5213	5213	contractor or any agent, employee or subcontractor thereof, who shall use
5214	5214	1
5215	5215	2
5216	5216	3
5217	5217	4
5218	5218	5
5219	5219	6
5220	5220	7
5221	5221	8
5222	5222	9
5223	5223	10
5224	5224	11
5225	5225	12
5226	5226	13
5227	5227	14
5228	5228	15
5229	5229	16
5230	5230	17
5231	5231	18
5232	5232	19
5233	5233	20
5234	5234	21
5235	5235	22
5236	5236	23
5237	5237	24
5238	5238	25
5239	5239	26
5240	5240	27
5241	5241	28
5242	5242	29
5243	5243	30
5244	5244	31
5245	5245	32
5246	5246	33
5247	5247	34
5248	5248	35
5249	5249	36
5250	5250	37
5251	5251	38
5252	5252	39
5253	5253	40
5254	5254	41
5255	5255	42
5256	5256	43 SB 171 62
5257	5257	or otherwise dispose of any materials purchased under such a certificate
5258	5258	for any purpose other than that for which such a certificate is issued
5259	5259	without the payment of the sales or compensating tax otherwise imposed
5260	5260	upon such materials, shall be guilty of a misdemeanor and, upon
5261	5261	conviction therefor, shall be subject to the penalties provided for in K.S.A.
5262	5262	79-3615(h), and amendments thereto;
5263	5263	(rrr) all sales of tangible personal property and services purchased by
5264	5264	any county law library maintained pursuant to law and sales of tangible
5265	5265	personal property and services purchased by an organization that would
5266	5266	have been exempt from taxation under the provisions of this subsection if
5267	5267	purchased directly by the county law library for the purpose of providing
5268	5268	legal resources to attorneys, judges, students and the general public, and
5269	5269	all sales of any such property by or on behalf of any such county law
5270	5270	library;
5271	5271	(sss) all sales of tangible personal property and services purchased by
5272	5272	catholic charities or youthville, hereinafter referred to as charitable family
5273	5273	providers, which is exempt from federal income taxation pursuant to
5274	5274	section 501(c)(3) of the federal internal revenue code of 1986, and which
5275	5275	such property and services are used for the purpose of providing
5276	5276	emergency shelter and treatment for abused and neglected children as well
5277	5277	as meeting additional critical needs for children, juveniles and family, and
5278	5278	all sales of any such property by or on behalf of charitable family
5279	5279	providers for any such purpose; and all sales of tangible personal property
5280	5280	or services purchased by a contractor for the purpose of constructing,
5281	5281	maintaining, repairing, enlarging, furnishing or remodeling facilities for
5282	5282	the operation of services for charitable family providers for any such
5283	5283	purpose which would be exempt from taxation under the provisions of this
5284	5284	section if purchased directly by charitable family providers. Nothing in
5285	5285	this subsection shall be deemed to exempt the purchase of any construction
5286	5286	machinery, equipment or tools used in the constructing, maintaining,
5287	5287	repairing, enlarging, furnishing or remodeling such facilities for charitable
5288	5288	family providers. When charitable family providers contracts for the
5289	5289	purpose of constructing, maintaining, repairing, enlarging, furnishing or
5290	5290	remodeling such facilities, it shall obtain from the state and furnish to the
5291	5291	contractor an exemption certificate for the project involved, and the
5292	5292	contractor may purchase materials for incorporation in such project. The
5293	5293	contractor shall furnish the number of such certificate to all suppliers from
5294	5294	whom such purchases are made, and such suppliers shall execute invoices
5295	5295	covering the same bearing the number of such certificate. Upon
5296	5296	completion of the project the contractor shall furnish to charitable family
5297	5297	providers a sworn statement, on a form to be provided by the director of
5298	5298	taxation, that all purchases so made were entitled to exemption under this
5299	5299	subsection. All invoices shall be held by the contractor for a period of five
5300	5300	1
5301	5301	2
5302	5302	3
5303	5303	4
5304	5304	5
5305	5305	6
5306	5306	7
5307	5307	8
5308	5308	9
5309	5309	10
5310	5310	11
5311	5311	12
5312	5312	13
5313	5313	14
5314	5314	15
5315	5315	16
5316	5316	17
5317	5317	18
5318	5318	19
5319	5319	20
5320	5320	21
5321	5321	22
5322	5322	23
5323	5323	24
5324	5324	25
5325	5325	26
5326	5326	27
5327	5327	28
5328	5328	29
5329	5329	30
5330	5330	31
5331	5331	32
5332	5332	33
5333	5333	34
5334	5334	35
5335	5335	36
5336	5336	37
5337	5337	38
5338	5338	39
5339	5339	40
5340	5340	41
5341	5341	42
5342	5342	43 SB 171 63
5343	5343	years and shall be subject to audit by the director of taxation. If any
5344	5344	materials purchased under such a certificate are found not to have been
5345	5345	incorporated in the building or other project or not to have been returned
5346	5346	for credit or the sales or compensating tax otherwise imposed upon such
5347	5347	materials that will not be so incorporated in the building or other project
5348	5348	reported and paid by such contractor to the director of taxation not later
5349	5349	than the 20
5350	5350	th
5351	5351	day of the month following the close of the month in which it
5352	5352	shall be determined that such materials will not be used for the purpose for
5353	5353	which such certificate was issued, charitable family providers shall be
5354	5354	liable for tax on all materials purchased for the project, and upon payment
5355	5355	thereof it may recover the same from the contractor together with
5356	5356	reasonable attorney fees. Any contractor or any agent, employee or
5357	5357	subcontractor thereof, who shall use or otherwise dispose of any materials
5358	5358	purchased under such a certificate for any purpose other than that for
5359	5359	which such a certificate is issued without the payment of the sales or
5360	5360	compensating tax otherwise imposed upon such materials, shall be guilty
5361	5361	of a misdemeanor and, upon conviction therefor, shall be subject to the
5362	5362	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
5363	5363	(ttt) all sales of tangible personal property or services purchased by a
5364	5364	contractor for a project for the purpose of restoring, constructing,
5365	5365	equipping, reconstructing, maintaining, repairing, enlarging, furnishing or
5366	5366	remodeling a home or facility owned by a nonprofit museum that has been
5367	5367	granted an exemption pursuant to subsection (qq), which such home or
5368	5368	facility is located in a city that has been designated as a qualified
5369	5369	hometown pursuant to the provisions of K.S.A. 75-5071 et seq., and
5370	5370	amendments thereto, and which such project is related to the purposes of
5371	5371	K.S.A. 75-5071 et seq., and amendments thereto, and that would be
5372	5372	exempt from taxation under the provisions of this section if purchased
5373	5373	directly by such nonprofit museum. Nothing in this subsection shall be
5374	5374	deemed to exempt the purchase of any construction machinery, equipment
5375	5375	or tools used in the restoring, constructing, equipping, reconstructing,
5376	5376	maintaining, repairing, enlarging, furnishing or remodeling a home or
5377	5377	facility for any such nonprofit museum. When any such nonprofit museum
5378	5378	shall contract for the purpose of restoring, constructing, equipping,
5379	5379	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
5380	5380	a home or facility, it shall obtain from the state and furnish to the
5381	5381	contractor an exemption certificate for the project involved, and the
5382	5382	contractor may purchase materials for incorporation in such project. The
5383	5383	contractor shall furnish the number of such certificates to all suppliers
5384	5384	from whom such purchases are made, and such suppliers shall execute
5385	5385	invoices covering the same bearing the number of such certificate. Upon
5386	5386	completion of the project, the contractor shall furnish to such nonprofit
5387	5387	museum a sworn statement on a form to be provided by the director of
5388	5388	1
5389	5389	2
5390	5390	3
5391	5391	4
5392	5392	5
5393	5393	6
5394	5394	7
5395	5395	8
5396	5396	9
5397	5397	10
5398	5398	11
5399	5399	12
5400	5400	13
5401	5401	14
5402	5402	15
5403	5403	16
5404	5404	17
5405	5405	18
5406	5406	19
5407	5407	20
5408	5408	21
5409	5409	22
5410	5410	23
5411	5411	24
5412	5412	25
5413	5413	26
5414	5414	27
5415	5415	28
5416	5416	29
5417	5417	30
5418	5418	31
5419	5419	32
5420	5420	33
5421	5421	34
5422	5422	35
5423	5423	36
5424	5424	37
5425	5425	38
5426	5426	39
5427	5427	40
5428	5428	41
5429	5429	42
5430	5430	43 SB 171 64
5431	5431	taxation that all purchases so made were entitled to exemption under this
5432	5432	subsection. All invoices shall be held by the contractor for a period of five
5433	5433	years and shall be subject to audit by the director of taxation. If any
5434	5434	materials purchased under such a certificate are found not to have been
5435	5435	incorporated in the building or other project or not to have been returned
5436	5436	for credit or the sales or compensating tax otherwise imposed upon such
5437	5437	materials that will not be so incorporated in a home or facility or other
5438	5438	project reported and paid by such contractor to the director of taxation not
5439	5439	later than the 20
5440	5440	th
5441	5441	day of the month following the close of the month in
5442	5442	which it shall be determined that such materials will not be used for the
5443	5443	purpose for which such certificate was issued, such nonprofit museum
5444	5444	shall be liable for tax on all materials purchased for the project, and upon
5445	5445	payment thereof it may recover the same from the contractor together with
5446	5446	reasonable attorney fees. Any contractor or any agent, employee or
5447	5447	subcontractor thereof, who shall use or otherwise dispose of any materials
5448	5448	purchased under such a certificate for any purpose other than that for
5449	5449	which such a certificate is issued without the payment of the sales or
5450	5450	compensating tax otherwise imposed upon such materials, shall be guilty
5451	5451	of a misdemeanor and, upon conviction therefor, shall be subject to the
5452	5452	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
5453	5453	(uuu) all sales of tangible personal property and services purchased
5454	5454	by Kansas children's service league, hereinafter referred to as KCSL,
5455	5455	which is exempt from federal income taxation pursuant to section 501(c)
5456	5456	(3) of the federal internal revenue code of 1986, and which such property
5457	5457	and services are used for the purpose of providing for the prevention and
5458	5458	treatment of child abuse and maltreatment as well as meeting additional
5459	5459	critical needs for children, juveniles and family, and all sales of any such
5460	5460	property by or on behalf of KCSL for any such purpose; and all sales of
5461	5461	tangible personal property or services purchased by a contractor for the
5462	5462	purpose of constructing, maintaining, repairing, enlarging, furnishing or
5463	5463	remodeling facilities for the operation of services for KCSL for any such
5464	5464	purpose that would be exempt from taxation under the provisions of this
5465	5465	section if purchased directly by KCSL. Nothing in this subsection shall be
5466	5466	deemed to exempt the purchase of any construction machinery, equipment
5467	5467	or tools used in the constructing, maintaining, repairing, enlarging,
5468	5468	furnishing or remodeling such facilities for KCSL. When KCSL contracts
5469	5469	for the purpose of constructing, maintaining, repairing, enlarging,
5470	5470	furnishing or remodeling such facilities, it shall obtain from the state and
5471	5471	furnish to the contractor an exemption certificate for the project involved,
5472	5472	and the contractor may purchase materials for incorporation in such
5473	5473	project. The contractor shall furnish the number of such certificate to all
5474	5474	suppliers from whom such purchases are made, and such suppliers shall
5475	5475	execute invoices covering the same bearing the number of such certificate.
5476	5476	1
5477	5477	2
5478	5478	3
5479	5479	4
5480	5480	5
5481	5481	6
5482	5482	7
5483	5483	8
5484	5484	9
5485	5485	10
5486	5486	11
5487	5487	12
5488	5488	13
5489	5489	14
5490	5490	15
5491	5491	16
5492	5492	17
5493	5493	18
5494	5494	19
5495	5495	20
5496	5496	21
5497	5497	22
5498	5498	23
5499	5499	24
5500	5500	25
5501	5501	26
5502	5502	27
5503	5503	28
5504	5504	29
5505	5505	30
5506	5506	31
5507	5507	32
5508	5508	33
5509	5509	34
5510	5510	35
5511	5511	36
5512	5512	37
5513	5513	38
5514	5514	39
5515	5515	40
5516	5516	41
5517	5517	42
5518	5518	43 SB 171 65
5519	5519	Upon completion of the project the contractor shall furnish to KCSL a
5520	5520	sworn statement, on a form to be provided by the director of taxation, that
5521	5521	all purchases so made were entitled to exemption under this subsection.
5522	5522	All invoices shall be held by the contractor for a period of five years and
5523	5523	shall be subject to audit by the director of taxation. If any materials
5524	5524	purchased under such a certificate are found not to have been incorporated
5525	5525	in the building or other project or not to have been returned for credit or
5526	5526	the sales or compensating tax otherwise imposed upon such materials that
5527	5527	will not be so incorporated in the building or other project reported and
5528	5528	paid by such contractor to the director of taxation not later than the 20
5529	5529	th
5530	5530	day of the month following the close of the month in which it shall be
5531	5531	determined that such materials will not be used for the purpose for which
5532	5532	such certificate was issued, KCSL shall be liable for tax on all materials
5533	5533	purchased for the project, and upon payment thereof it may recover the
5534	5534	same from the contractor together with reasonable attorney fees. Any
5535	5535	contractor or any agent, employee or subcontractor thereof, who shall use
5536	5536	or otherwise dispose of any materials purchased under such a certificate
5537	5537	for any purpose other than that for which such a certificate is issued
5538	5538	without the payment of the sales or compensating tax otherwise imposed
5539	5539	upon such materials, shall be guilty of a misdemeanor and, upon
5540	5540	conviction therefor, shall be subject to the penalties provided for in K.S.A.
5541	5541	79-3615(h), and amendments thereto;
5542	5542	(vvv) all sales of tangible personal property or services, including the
5543	5543	renting and leasing of tangible personal property or services, purchased by
5544	5544	jazz in the woods, inc., a Kansas corporation that is exempt from federal
5545	5545	income taxation pursuant to section 501(c)(3) of the federal internal
5546	5546	revenue code, for the purpose of providing jazz in the woods, an event
5547	5547	benefiting children-in-need and other nonprofit charities assisting such
5548	5548	children, and all sales of any such property by or on behalf of such
5549	5549	organization for such purpose;
5550	5550	(www) all sales of tangible personal property purchased by or on
5551	5551	behalf of the Frontenac education foundation, which is exempt from
5552	5552	federal income taxation pursuant to section 501(c)(3) of the federal
5553	5553	internal revenue code, for the purpose of providing education support for
5554	5554	students, and all sales of any such property by or on behalf of such
5555	5555	organization for such purpose;
5556	5556	(xxx) all sales of personal property and services purchased by the
5557	5557	booth theatre foundation, inc., an organization, which is exempt from
5558	5558	federal income taxation pursuant to section 501(c)(3) of the federal
5559	5559	internal revenue code of 1986, and which such personal property and
5560	5560	services are used by any such organization in the constructing, equipping,
5561	5561	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
5562	5562	of the booth theatre, and all sales of tangible personal property or services
5563	5563	1
5564	5564	2
5565	5565	3
5566	5566	4
5567	5567	5
5568	5568	6
5569	5569	7
5570	5570	8
5571	5571	9
5572	5572	10
5573	5573	11
5574	5574	12
5575	5575	13
5576	5576	14
5577	5577	15
5578	5578	16
5579	5579	17
5580	5580	18
5581	5581	19
5582	5582	20
5583	5583	21
5584	5584	22
5585	5585	23
5586	5586	24
5587	5587	25
5588	5588	26
5589	5589	27
5590	5590	28
5591	5591	29
5592	5592	30
5593	5593	31
5594	5594	32
5595	5595	33
5596	5596	34
5597	5597	35
5598	5598	36
5599	5599	37
5600	5600	38
5601	5601	39
5602	5602	40
5603	5603	41
5604	5604	42
5605	5605	43 SB 171 66
5606	5606	purchased by a contractor for the purpose of constructing, equipping,
5607	5607	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
5608	5608	the booth theatre for such organization, that would be exempt from
5609	5609	taxation under the provisions of this section if purchased directly by such
5610	5610	organization. Nothing in this subsection shall be deemed to exempt the
5611	5611	purchase of any construction machinery, equipment or tools used in the
5612	5612	constructing, equipping, reconstructing, maintaining, repairing, enlarging,
5613	5613	furnishing or remodeling facilities for any such organization. When any
5614	5614	such organization shall contract for the purpose of constructing, equipping,
5615	5615	reconstructing, maintaining, repairing, enlarging, furnishing or remodeling
5616	5616	facilities, it shall obtain from the state and furnish to the contractor an
5617	5617	exemption certificate for the project involved, and the contractor may
5618	5618	purchase materials for incorporation in such project. The contractor shall
5619	5619	furnish the number of such certificate to all suppliers from whom such
5620	5620	purchases are made, and such suppliers shall execute invoices covering the
5621	5621	same bearing the number of such certificate. Upon completion of the
5622	5622	project the contractor shall furnish to such organization concerned a sworn
5623	5623	statement, on a form to be provided by the director of taxation, that all
5624	5624	purchases so made were entitled to exemption under this subsection. All
5625	5625	invoices shall be held by the contractor for a period of five years and shall
5626	5626	be subject to audit by the director of taxation. If any materials purchased
5627	5627	under such a certificate are found not to have been incorporated in such
5628	5628	facilities or not to have been returned for credit or the sales or
5629	5629	compensating tax otherwise imposed upon such materials that will not be
5630	5630	so incorporated in such facilities reported and paid by such contractor to
5631	5631	the director of taxation not later than the 20
5632	5632	th
5633	5633	day of the month following
5634	5634	the close of the month in which it shall be determined that such materials
5635	5635	will not be used for the purpose for which such certificate was issued, such
5636	5636	organization concerned shall be liable for tax on all materials purchased
5637	5637	for the project, and upon payment thereof it may recover the same from
5638	5638	the contractor together with reasonable attorney fees. Any contractor or
5639	5639	any agent, employee or subcontractor thereof, who shall use or otherwise
5640	5640	dispose of any materials purchased under such a certificate for any purpose
5641	5641	other than that for which such a certificate is issued without the payment
5642	5642	of the sales or compensating tax otherwise imposed upon such materials,
5643	5643	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
5644	5644	subject to the penalties provided for in K.S.A. 79-3615(h), and
5645	5645	amendments thereto. Sales tax paid on and after January 1, 2007, but prior
5646	5646	to the effective date of this act upon the gross receipts received from any
5647	5647	sale which would have been exempted by the provisions of this subsection
5648	5648	had such sale occurred after the effective date of this act shall be refunded.
5649	5649	Each claim for a sales tax refund shall be verified and submitted to the
5650	5650	director of taxation upon forms furnished by the director and shall be
5651	5651	1
5652	5652	2
5653	5653	3
5654	5654	4
5655	5655	5
5656	5656	6
5657	5657	7
5658	5658	8
5659	5659	9
5660	5660	10
5661	5661	11
5662	5662	12
5663	5663	13
5664	5664	14
5665	5665	15
5666	5666	16
5667	5667	17
5668	5668	18
5669	5669	19
5670	5670	20
5671	5671	21
5672	5672	22
5673	5673	23
5674	5674	24
5675	5675	25
5676	5676	26
5677	5677	27
5678	5678	28
5679	5679	29
5680	5680	30
5681	5681	31
5682	5682	32
5683	5683	33
5684	5684	34
5685	5685	35
5686	5686	36
5687	5687	37
5688	5688	38
5689	5689	39
5690	5690	40
5691	5691	41
5692	5692	42
5693	5693	43 SB 171 67
5694	5694	accompanied by any additional documentation required by the director.
5695	5695	The director shall review each claim and shall refund that amount of sales
5696	5696	tax paid as determined under the provisions of this subsection. All refunds
5697	5697	shall be paid from the sales tax refund fund upon warrants of the director
5698	5698	of accounts and reports pursuant to vouchers approved by the director or
5699	5699	the director's designee;
5700	5700	(yyy) all sales of tangible personal property and services purchased
5701	5701	by TLC charities foundation, inc., hereinafter referred to as TLC charities,
5702	5702	which is exempt from federal income taxation pursuant to section 501(c)
5703	5703	(3) of the federal internal revenue code of 1986, and which such property
5704	5704	and services are used for the purpose of encouraging private philanthropy
5705	5705	to further the vision, values, and goals of TLC for children and families,
5706	5706	inc.; and all sales of such property and services by or on behalf of TLC
5707	5707	charities for any such purpose and all sales of tangible personal property or
5708	5708	services purchased by a contractor for the purpose of constructing,
5709	5709	maintaining, repairing, enlarging, furnishing or remodeling facilities for
5710	5710	the operation of services for TLC charities for any such purpose that would
5711	5711	be exempt from taxation under the provisions of this section if purchased
5712	5712	directly by TLC charities. Nothing in this subsection shall be deemed to
5713	5713	exempt the purchase of any construction machinery, equipment or tools
5714	5714	used in the constructing, maintaining, repairing, enlarging, furnishing or
5715	5715	remodeling such facilities for TLC charities. When TLC charities contracts
5716	5716	for the purpose of constructing, maintaining, repairing, enlarging,
5717	5717	furnishing or remodeling such facilities, it shall obtain from the state and
5718	5718	furnish to the contractor an exemption certificate for the project involved,
5719	5719	and the contractor may purchase materials for incorporation in such
5720	5720	project. The contractor shall furnish the number of such certificate to all
5721	5721	suppliers from whom such purchases are made, and such suppliers shall
5722	5722	execute invoices covering the same bearing the number of such certificate.
5723	5723	Upon completion of the project the contractor shall furnish to TLC
5724	5724	charities a sworn statement, on a form to be provided by the director of
5725	5725	taxation, that all purchases so made were entitled to exemption under this
5726	5726	subsection. All invoices shall be held by the contractor for a period of five
5727	5727	years and shall be subject to audit by the director of taxation. If any
5728	5728	materials purchased under such a certificate are found not to have been
5729	5729	incorporated in the building or other project or not to have been returned
5730	5730	for credit or the sales or compensating tax otherwise imposed upon such
5731	5731	materials that will not be incorporated into the building or other project
5732	5732	reported and paid by such contractor to the director of taxation not later
5733	5733	than the 20
5734	5734	th
5735	5735	day of the month following the close of the month in which it
5736	5736	shall be determined that such materials will not be used for the purpose for
5737	5737	which such certificate was issued, TLC charities shall be liable for tax on
5738	5738	all materials purchased for the project, and upon payment thereof it may
5739	5739	1
5740	5740	2
5741	5741	3
5742	5742	4
5743	5743	5
5744	5744	6
5745	5745	7
5746	5746	8
5747	5747	9
5748	5748	10
5749	5749	11
5750	5750	12
5751	5751	13
5752	5752	14
5753	5753	15
5754	5754	16
5755	5755	17
5756	5756	18
5757	5757	19
5758	5758	20
5759	5759	21
5760	5760	22
5761	5761	23
5762	5762	24
5763	5763	25
5764	5764	26
5765	5765	27
5766	5766	28
5767	5767	29
5768	5768	30
5769	5769	31
5770	5770	32
5771	5771	33
5772	5772	34
5773	5773	35
5774	5774	36
5775	5775	37
5776	5776	38
5777	5777	39
5778	5778	40
5779	5779	41
5780	5780	42
5781	5781	43 SB 171 68
5782	5782	recover the same from the contractor together with reasonable attorney
5783	5783	fees. Any contractor or any agent, employee or subcontractor thereof, who
5784	5784	shall use or otherwise dispose of any materials purchased under such a
5785	5785	certificate for any purpose other than that for which such a certificate is
5786	5786	issued without the payment of the sales or compensating tax otherwise
5787	5787	imposed upon such materials, shall be guilty of a misdemeanor and, upon
5788	5788	conviction therefor, shall be subject to the penalties provided for in K.S.A.
5789	5789	79-3615(h), and amendments thereto;
5790	5790	(zzz) all sales of tangible personal property purchased by the rotary
5791	5791	club of shawnee foundation, which is exempt from federal income taxation
5792	5792	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
5793	5793	as amended, used for the purpose of providing contributions to community
5794	5794	service organizations and scholarships;
5795	5795	(aaaa) all sales of personal property and services purchased by or on
5796	5796	behalf of victory in the valley, inc., which is exempt from federal income
5797	5797	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
5798	5798	for the purpose of providing a cancer support group and services for
5799	5799	persons with cancer, and all sales of any such property by or on behalf of
5800	5800	any such organization for any such purpose;
5801	5801	(bbbb) all sales of entry or participation fees, charges or tickets by
5802	5802	Guadalupe health foundation, which is exempt from federal income
5803	5803	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
5804	5804	for such organization's annual fundraising event which purpose is to
5805	5805	provide health care services for uninsured workers;
5806	5806	(cccc) all sales of tangible personal property or services purchased by
5807	5807	or on behalf of wayside waifs, inc., which is exempt from federal income
5808	5808	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
5809	5809	for the purpose of providing such organization's annual fundraiser, an
5810	5810	event whose purpose is to support the care of homeless and abandoned
5811	5811	animals, animal adoption efforts, education programs for children and
5812	5812	efforts to reduce animal over-population and animal welfare services, and
5813	5813	all sales of any such property, including entry or participation fees or
5814	5814	charges, by or on behalf of such organization for such purpose;
5815	5815	(dddd) all sales of tangible personal property or services purchased
5816	5816	by or on behalf of goodwill industries or Easter seals of Kansas, inc., both
5817	5817	of which are exempt from federal income taxation pursuant to section
5818	5818	501(c)(3) of the federal internal revenue code, for the purpose of providing
5819	5819	education, training and employment opportunities for people with
5820	5820	disabilities and other barriers to employment;
5821	5821	(eeee) all sales of tangible personal property or services purchased by
5822	5822	or on behalf of all American beef battalion, inc., which is exempt from
5823	5823	federal income taxation pursuant to section 501(c)(3) of the federal
5824	5824	internal revenue code, for the purpose of educating, promoting and
5825	5825	1
5826	5826	2
5827	5827	3
5828	5828	4
5829	5829	5
5830	5830	6
5831	5831	7
5832	5832	8
5833	5833	9
5834	5834	10
5835	5835	11
5836	5836	12
5837	5837	13
5838	5838	14
5839	5839	15
5840	5840	16
5841	5841	17
5842	5842	18
5843	5843	19
5844	5844	20
5845	5845	21
5846	5846	22
5847	5847	23
5848	5848	24
5849	5849	25
5850	5850	26
5851	5851	27
5852	5852	28
5853	5853	29
5854	5854	30
5855	5855	31
5856	5856	32
5857	5857	33
5858	5858	34
5859	5859	35
5860	5860	36
5861	5861	37
5862	5862	38
5863	5863	39
5864	5864	40
5865	5865	41
5866	5866	42
5867	5867	43 SB 171 69
5868	5868	participating as a contact group through the beef cattle industry in order to
5869	5869	carry out such projects that provide support and morale to members of the
5870	5870	United States armed forces and military services;
5871	5871	(ffff) all sales of tangible personal property and services purchased by
5872	5872	sheltered living, inc., which is exempt from federal income taxation
5873	5873	pursuant to section 501(c)(3) of the federal internal revenue code of 1986,
5874	5874	and which such property and services are used for the purpose of
5875	5875	providing residential and day services for people with developmental
5876	5876	disabilities or intellectual disability, or both, and all sales of any such
5877	5877	property by or on behalf of sheltered living, inc., for any such purpose; and
5878	5878	all sales of tangible personal property or services purchased by a
5879	5879	contractor for the purpose of rehabilitating, constructing, maintaining,
5880	5880	repairing, enlarging, furnishing or remodeling homes and facilities for
5881	5881	sheltered living, inc., for any such purpose that would be exempt from
5882	5882	taxation under the provisions of this section if purchased directly by
5883	5883	sheltered living, inc. Nothing in this subsection shall be deemed to exempt
5884	5884	the purchase of any construction machinery, equipment or tools used in the
5885	5885	constructing, maintaining, repairing, enlarging, furnishing or remodeling
5886	5886	such homes and facilities for sheltered living, inc. When sheltered living,
5887	5887	inc., contracts for the purpose of rehabilitating, constructing, maintaining,
5888	5888	repairing, enlarging, furnishing or remodeling such homes and facilities, it
5889	5889	shall obtain from the state and furnish to the contractor an exemption
5890	5890	certificate for the project involved, and the contractor may purchase
5891	5891	materials for incorporation in such project. The contractor shall furnish the
5892	5892	number of such certificate to all suppliers from whom such purchases are
5893	5893	made, and such suppliers shall execute invoices covering the same bearing
5894	5894	the number of such certificate. Upon completion of the project the
5895	5895	contractor shall furnish to sheltered living, inc., a sworn statement, on a
5896	5896	form to be provided by the director of taxation, that all purchases so made
5897	5897	were entitled to exemption under this subsection. All invoices shall be held
5898	5898	by the contractor for a period of five years and shall be subject to audit by
5899	5899	the director of taxation. If any materials purchased under such a certificate
5900	5900	are found not to have been incorporated in the building or other project or
5901	5901	not to have been returned for credit or the sales or compensating tax
5902	5902	otherwise imposed upon such materials that will not be so incorporated in
5903	5903	the building or other project reported and paid by such contractor to the
5904	5904	director of taxation not later than the 20
5905	5905	th
5906	5906	day of the month following the
5907	5907	close of the month in which it shall be determined that such materials will
5908	5908	not be used for the purpose for which such certificate was issued, sheltered
5909	5909	living, inc., shall be liable for tax on all materials purchased for the
5910	5910	project, and upon payment thereof it may recover the same from the
5911	5911	contractor together with reasonable attorney fees. Any contractor or any
5912	5912	agent, employee or subcontractor thereof, who shall use or otherwise
5913	5913	1
5914	5914	2
5915	5915	3
5916	5916	4
5917	5917	5
5918	5918	6
5919	5919	7
5920	5920	8
5921	5921	9
5922	5922	10
5923	5923	11
5924	5924	12
5925	5925	13
5926	5926	14
5927	5927	15
5928	5928	16
5929	5929	17
5930	5930	18
5931	5931	19
5932	5932	20
5933	5933	21
5934	5934	22
5935	5935	23
5936	5936	24
5937	5937	25
5938	5938	26
5939	5939	27
5940	5940	28
5941	5941	29
5942	5942	30
5943	5943	31
5944	5944	32
5945	5945	33
5946	5946	34
5947	5947	35
5948	5948	36
5949	5949	37
5950	5950	38
5951	5951	39
5952	5952	40
5953	5953	41
5954	5954	42
5955	5955	43 SB 171 70
5956	5956	dispose of any materials purchased under such a certificate for any purpose
5957	5957	other than that for which such a certificate is issued without the payment
5958	5958	of the sales or compensating tax otherwise imposed upon such materials,
5959	5959	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
5960	5960	subject to the penalties provided for in K.S.A. 79-3615(h), and
5961	5961	amendments thereto;
5962	5962	(gggg) all sales of game birds for which the primary purpose is use in
5963	5963	hunting;
5964	5964	(hhhh) all sales of tangible personal property or services purchased
5965	5965	on or after July 1, 2014, for the purpose of and in conjunction with
5966	5966	constructing, reconstructing, enlarging or remodeling a business identified
5967	5967	under the North American industry classification system (NAICS)
5968	5968	subsectors 1123, 1124, 112112, 112120 or 112210, and the sale and
5969	5969	installation of machinery and equipment purchased for installation at any
5970	5970	such business. The exemption provided in this subsection shall not apply
5971	5971	to projects that have actual total costs less than $50,000. When a person
5972	5972	contracts for the construction, reconstruction, enlargement or remodeling
5973	5973	of any such business, such person shall obtain from the state and furnish to
5974	5974	the contractor an exemption certificate for the project involved, and the
5975	5975	contractor may purchase materials, machinery and equipment for
5976	5976	incorporation in such project. The contractor shall furnish the number of
5977	5977	such certificates to all suppliers from whom such purchases are made, and
5978	5978	such suppliers shall execute invoices covering the same bearing the
5979	5979	number of such certificate. Upon completion of the project, the contractor
5980	5980	shall furnish to the owner of the business a sworn statement, on a form to
5981	5981	be provided by the director of taxation, that all purchases so made were
5982	5982	entitled to exemption under this subsection. All invoices shall be held by
5983	5983	the contractor for a period of five years and shall be subject to audit by the
5984	5984	director of taxation. Any contractor or any agent, employee or
5985	5985	subcontractor of the contractor, who shall use or otherwise dispose of any
5986	5986	materials, machinery or equipment purchased under such a certificate for
5987	5987	any purpose other than that for which such a certificate is issued without
5988	5988	the payment of the sales or compensating tax otherwise imposed thereon,
5989	5989	shall be guilty of a misdemeanor and, upon conviction therefor, shall be
5990	5990	subject to the penalties provided for in K.S.A. 79-3615(h), and
5991	5991	amendments thereto;
5992	5992	(iiii) all sales of tangible personal property or services purchased by a
5993	5993	contractor for the purpose of constructing, maintaining, repairing,
5994	5994	enlarging, furnishing or remodeling facilities for the operation of services
5995	5995	for Wichita children's home for any such purpose that would be exempt
5996	5996	from taxation under the provisions of this section if purchased directly by
5997	5997	Wichita children's home. Nothing in this subsection shall be deemed to
5998	5998	exempt the purchase of any construction machinery, equipment or tools
5999	5999	1
6000	6000	2
6001	6001	3
6002	6002	4
6003	6003	5
6004	6004	6
6005	6005	7
6006	6006	8
6007	6007	9
6008	6008	10
6009	6009	11
6010	6010	12
6011	6011	13
6012	6012	14
6013	6013	15
6014	6014	16
6015	6015	17
6016	6016	18
6017	6017	19
6018	6018	20
6019	6019	21
6020	6020	22
6021	6021	23
6022	6022	24
6023	6023	25
6024	6024	26
6025	6025	27
6026	6026	28
6027	6027	29
6028	6028	30
6029	6029	31
6030	6030	32
6031	6031	33
6032	6032	34
6033	6033	35
6034	6034	36
6035	6035	37
6036	6036	38
6037	6037	39
6038	6038	40
6039	6039	41
6040	6040	42
6041	6041	43 SB 171 71
6042	6042	used in the constructing, maintaining, repairing, enlarging, furnishing or
6043	6043	remodeling such facilities for Wichita children's home. When Wichita
6044	6044	children's home contracts for the purpose of constructing, maintaining,
6045	6045	repairing, enlarging, furnishing or remodeling such facilities, it shall obtain
6046	6046	from the state and furnish to the contractor an exemption certificate for the
6047	6047	project involved, and the contractor may purchase materials for
6048	6048	incorporation in such project. The contractor shall furnish the number of
6049	6049	such certificate to all suppliers from whom such purchases are made, and
6050	6050	such suppliers shall execute invoices covering the same bearing the
6051	6051	number of such certificate. Upon completion of the project, the contractor
6052	6052	shall furnish to Wichita children's home a sworn statement, on a form to be
6053	6053	provided by the director of taxation, that all purchases so made were
6054	6054	entitled to exemption under this subsection. All invoices shall be held by
6055	6055	the contractor for a period of five years and shall be subject to audit by the
6056	6056	director of taxation. If any materials purchased under such a certificate are
6057	6057	found not to have been incorporated in the building or other project or not
6058	6058	to have been returned for credit or the sales or compensating tax otherwise
6059	6059	imposed upon such materials that will not be so incorporated in the
6060	6060	building or other project reported and paid by such contractor to the
6061	6061	director of taxation not later than the 20
6062	6062	th
6063	6063	day of the month following the
6064	6064	close of the month in which it shall be determined that such materials will
6065	6065	not be used for the purpose for which such certificate was issued, Wichita
6066	6066	children's home shall be liable for the tax on all materials purchased for the
6067	6067	project, and upon payment, it may recover the same from the contractor
6068	6068	together with reasonable attorney fees. Any contractor or any agent,
6069	6069	employee or subcontractor, who shall use or otherwise dispose of any
6070	6070	materials purchased under such a certificate for any purpose other than that
6071	6071	for which such a certificate is issued without the payment of the sales or
6072	6072	compensating tax otherwise imposed upon such materials, shall be guilty
6073	6073	of a misdemeanor and, upon conviction, shall be subject to the penalties
6074	6074	provided for in K.S.A. 79-3615(h), and amendments thereto;
6075	6075	(jjjj) all sales of tangible personal property or services purchased by
6076	6076	or on behalf of the beacon, inc., that is exempt from federal income
6077	6077	taxation pursuant to section 501(c)(3) of the federal internal revenue code,
6078	6078	for the purpose of providing those desiring help with food, shelter, clothing
6079	6079	and other necessities of life during times of special need;
6080	6080	(kkkk) all sales of tangible personal property and services purchased
6081	6081	by or on behalf of reaching out from within, inc., which is exempt from
6082	6082	federal income taxation pursuant to section 501(c)(3) of the federal
6083	6083	internal revenue code, for the purpose of sponsoring self-help programs for
6084	6084	incarcerated persons that will enable such incarcerated persons to become
6085	6085	role models for non-violence while in correctional facilities and productive
6086	6086	family members and citizens upon return to the community;
6087	6087	1
6088	6088	2
6089	6089	3
6090	6090	4
6091	6091	5
6092	6092	6
6093	6093	7
6094	6094	8
6095	6095	9
6096	6096	10
6097	6097	11
6098	6098	12
6099	6099	13
6100	6100	14
6101	6101	15
6102	6102	16
6103	6103	17
6104	6104	18
6105	6105	19
6106	6106	20
6107	6107	21
6108	6108	22
6109	6109	23
6110	6110	24
6111	6111	25
6112	6112	26
6113	6113	27
6114	6114	28
6115	6115	29
6116	6116	30
6117	6117	31
6118	6118	32
6119	6119	33
6120	6120	34
6121	6121	35
6122	6122	36
6123	6123	37
6124	6124	38
6125	6125	39
6126	6126	40
6127	6127	41
6128	6128	42
6129	6129	43 SB 171 72
6130	6130	(llll) all sales of tangible personal property and services purchased by
6131	6131	Gove county healthcare endowment foundation, inc., which is exempt
6132	6132	from federal income taxation pursuant to section 501(c)(3) of the federal
6133	6133	internal revenue code of 1986, and which such property and services are
6134	6134	used for the purpose of constructing and equipping an airport in Quinter,
6135	6135	Kansas, and all sales of tangible personal property or services purchased
6136	6136	by a contractor for the purpose of constructing and equipping an airport in
6137	6137	Quinter, Kansas, for such organization, that would be exempt from
6138	6138	taxation under the provisions of this section if purchased directly by such
6139	6139	organization. Nothing in this subsection shall be deemed to exempt the
6140	6140	purchase of any construction machinery, equipment or tools used in the
6141	6141	constructing or equipping of facilities for such organization. When such
6142	6142	organization shall contract for the purpose of constructing or equipping an
6143	6143	airport in Quinter, Kansas, it shall obtain from the state and furnish to the
6144	6144	contractor an exemption certificate for the project involved, and the
6145	6145	contractor may purchase materials for incorporation in such project. The
6146	6146	contractor shall furnish the number of such certificate to all suppliers from
6147	6147	whom such purchases are made, and such suppliers shall execute invoices
6148	6148	covering the same bearing the number of such certificate. Upon
6149	6149	completion of the project, the contractor shall furnish to such organization
6150	6150	concerned a sworn statement, on a form to be provided by the director of
6151	6151	taxation, that all purchases so made were entitled to exemption under this
6152	6152	subsection. All invoices shall be held by the contractor for a period of five
6153	6153	years and shall be subject to audit by the director of taxation. If any
6154	6154	materials purchased under such a certificate are found not to have been
6155	6155	incorporated in such facilities or not to have been returned for credit or the
6156	6156	sales or compensating tax otherwise imposed upon such materials that will
6157	6157	not be so incorporated in such facilities reported and paid by such
6158	6158	contractor to the director of taxation no later than the 20
6159	6159	th
6160	6160	day of the month
6161	6161	following the close of the month in which it shall be determined that such
6162	6162	materials will not be used for the purpose for which such certificate was
6163	6163	issued, such organization concerned shall be liable for tax on all materials
6164	6164	purchased for the project, and upon payment thereof it may recover the
6165	6165	same from the contractor together with reasonable attorney fees. Any
6166	6166	contractor or any agent, employee or subcontractor thereof, who purchased
6167	6167	under such a certificate for any purpose other than that for which such a
6168	6168	certificate is issued without the payment of the sales or compensating tax
6169	6169	otherwise imposed upon such materials, shall be guilty of a misdemeanor
6170	6170	and, upon conviction therefor, shall be subject to the penalties provided for
6171	6171	in K.S.A. 79-3615(h), and amendments thereto. The provisions of this
6172	6172	subsection shall expire and have no effect on and after July 1, 2019;
6173	6173	(mmmm) all sales of gold or silver coins; and palladium, platinum,
6174	6174	gold or silver bullion. For the purposes of this subsection, "bullion" means
6175	6175	1
6176	6176	2
6177	6177	3
6178	6178	4
6179	6179	5
6180	6180	6
6181	6181	7
6182	6182	8
6183	6183	9
6184	6184	10
6185	6185	11
6186	6186	12
6187	6187	13
6188	6188	14
6189	6189	15
6190	6190	16
6191	6191	17
6192	6192	18
6193	6193	19
6194	6194	20
6195	6195	21
6196	6196	22
6197	6197	23
6198	6198	24
6199	6199	25
6200	6200	26
6201	6201	27
6202	6202	28
6203	6203	29
6204	6204	30
6205	6205	31
6206	6206	32
6207	6207	33
6208	6208	34
6209	6209	35
6210	6210	36
6211	6211	37
6212	6212	38
6213	6213	39
6214	6214	40
6215	6215	41
6216	6216	42
6217	6217	43 SB 171 73
6218	6218	bars, ingots or commemorative medallions of gold, silver, platinum,
6219	6219	palladium, or a combination thereof, for which the value of the metal
6220	6220	depends on its content and not the form;
6221	6221	(nnnn) all sales of tangible personal property or services purchased
6222	6222	by friends of hospice of Jefferson county, an organization that is exempt
6223	6223	from federal income taxation pursuant to section 501(c)(3) of the federal
6224	6224	internal revenue code of 1986, for the purpose of providing support to the
6225	6225	Jefferson county hospice agency in end-of-life care of Jefferson county
6226	6226	families, friends and neighbors, and all sales of entry or participation fees,
6227	6227	charges or tickets by friends of hospice of Jefferson county for such
6228	6228	organization's fundraising event for such purpose; and
6229	6229	(oooo) all sales of tangible personal property or services purchased
6230	6230	for the purpose of and in conjunction with constructing, reconstructing,
6231	6231	enlarging or remodeling a qualified business facility by a qualified firm or
6232	6232	qualified supplier that meets the requirements established in K.S.A. 2022
6233	6233	Supp. 74-50,312 and 74-50,319, and amendments thereto, and that has
6234	6234	been approved for a project exemption certificate by the secretary of
6235	6235	commerce, and the sale and installation of machinery and equipment
6236	6236	purchased by such qualified firm or qualified supplier for installation at
6237	6237	any such qualified business facility. When a person shall contract for the
6238	6238	construction, reconstruction, enlargement or remodeling of any such
6239	6239	qualified business facility, such person shall obtain from the state and
6240	6240	furnish to the contractor an exemption certificate for the project involved,
6241	6241	and the contractor may purchase materials, machinery and equipment for
6242	6242	incorporation in such project. The contractor shall furnish the number of
6243	6243	such certificates to all suppliers from whom such purchases are made, and
6244	6244	such suppliers shall execute invoices covering the same bearing the
6245	6245	number of such certificate. Upon completion of the project, the contractor
6246	6246	shall furnish to the owner of the qualified firm or qualified supplier a
6247	6247	sworn statement, on a form to be provided by the director of taxation, that
6248	6248	all purchases so made were entitled to exemption under this subsection.
6249	6249	All invoices shall be held by the contractor for a period of five years and
6250	6250	shall be subject to audit by the director of taxation. Any contractor or any
6251	6251	agent, employee or subcontractor thereof who shall use or otherwise
6252	6252	dispose of any materials, machinery or equipment purchased under such a
6253	6253	certificate for any purpose other than that for which such a certificate is
6254	6254	issued without the payment of the sales or compensating tax otherwise
6255	6255	imposed thereon, shall be guilty of a misdemeanor and, upon conviction
6256	6256	therefor, shall be subject to the penalties provided for in K.S.A. 79-
6257	6257	3615(h), and amendments thereto. As used in this subsection, "qualified
6258	6258	business facility," "qualified firm" and "qualified supplier" mean the same
6259	6259	as defined in K.S.A. 2022 Supp. 74-50,311, and amendments thereto; and
6260	6260	(pppp) all sales of medical cannabis consumer products lawfully
6261	6261	1
6262	6262	2
6263	6263	3
6264	6264	4
6265	6265	5
6266	6266	6
6267	6267	7
6268	6268	8
6269	6269	9
6270	6270	10
6271	6271	11
6272	6272	12
6273	6273	13
6274	6274	14
6275	6275	15
6276	6276	16
6277	6277	17
6278	6278	18
6279	6279	19
6280	6280	20
6281	6281	21
6282	6282	22
6283	6283	23
6284	6284	24
6285	6285	25
6286	6286	26
6287	6287	27
6288	6288	28
6289	6289	29
6290	6290	30
6291	6291	31
6292	6292	32
6293	6293	33
6294	6294	34
6295	6295	35
6296	6296	36
6297	6297	37
6298	6298	38
6299	6299	39
6300	6300	40
6301	6301	41
6302	6302	42
6303	6303	43 SB 171 74
6304	6304	dispensed in accordance with the veterans first medical cannabis act.
6305	6305	Sec. 27. K.S.A. 79-5201 is hereby amended to read as follows: 79-
6306	6306	5201. As used in this act article 52 of chapter 79 of the Kansas Statutes
6307	6307	Annotated, and amendments thereto:
6308	6308	(a) "Marijuana" means any marijuana, whether real or counterfeit, as
6309	6309	defined by K.S.A. 2022 Supp. 21-5701, and amendments thereto, which is
6310	6310	held, possessed, transported, transferred, sold or offered to be sold in
6311	6311	violation of the laws of Kansas;
6312	6312	(b) "Controlled substance" means any drug or substance, whether real
6313	6313	or counterfeit, as defined by K.S.A. 2022 Supp. 21-5701, and amendments
6314	6314	thereto, which is held, possessed, transported, transferred, sold or offered
6315	6315	to be sold in violation of the laws of Kansas. Such term shall not include
6316	6316	marijuana;
6317	6317	(c)(b) "dealer" means any person who, in violation of Kansas law,
6318	6318	manufactures, produces, ships, transports or imports into Kansas or in any
6319	6319	manner acquires or possesses more than 28 grams of marijuana, or more
6320	6320	than one gram of any controlled substance, or 10 or more dosage units of
6321	6321	any controlled substance which is not sold by weight;
6322	6322	(d)(c) "domestic marijuana plant" means any cannabis plant at any
6323	6323	level of growth which is harvested or tended, manicured, irrigated,
6324	6324	fertilized or where there is other evidence that it has been treated in any
6325	6325	other way in an effort to enhance growth.
6326	6326	(d) "marijuana" means any marijuana, whether real or counterfeit,
6327	6327	as defined in K.S.A. 2022 Supp. 21-5701, and amendments thereto, that is
6328	6328	held, possessed, transported, transferred, sold or offered to be sold in
6329	6329	violation of the laws of Kansas; and
6330	6330	(e) "medical cannabis consumer products" means the same as
6331	6331	defined in section 2, and amendments thereto.
6332	6332	Sec. 28. K.S.A. 79-5210 is hereby amended to read as follows: 79-
6333	6333	5210. Nothing in this act requires persons registered under article 16 of
6334	6334	chapter 65 of the Kansas Statutes Annotated or otherwise lawfully in
6335	6335	possession of marijuana or, a controlled substance or medical cannabis to
6336	6336	pay the tax required under this act.
6337	6337	Sec. 29. K.S.A. 65-28a05, 65-28b08, 79-5201 and 79-5210 and
6338	6338	K.S.A. 2022 Supp. 21-5703, 21-5705, 21-5706, 21-5707, 21-5709, 21-
6339	6339	5710, 65-1120, 65-2836 and 79-3606 are hereby repealed.
6340	6340	Sec. 30. This act shall take effect and be in force from and after its
6341	6341	publication in the statute book.
6342	6342	1
6343	6343	2
6344	6344	3
6345	6345	4
6346	6346	5
6347	6347	6
6348	6348	7
6349	6349	8
6350	6350	9
6351	6351	10
6352	6352	11
6353	6353	12
6354	6354	13
6355	6355	14
6356	6356	15
6357	6357	16
6358	6358	17
6359	6359	18
6360	6360	19
6361	6361	20
6362	6362	21
6363	6363	22
6364	6364	23
6365	6365	24
6366	6366	25
6367	6367	26
6368	6368	27
6369	6369	28
6370	6370	29
6371	6371	30
6372	6372	31
6373	6373	32
6374	6374	33
6375	6375	34
6376	6376	35
6377	6377	36
6378	6378	37
6379	6379	38