Kansas 2023-2024 Regular Session

Kansas Senate Bill SB27 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	Session of 2023
1	2		SENATE BILL No. 27
2		-	AN ACT reconciling multiple amendments to certain statutes; amending K.S.A. 9-2201, as
3		-	amended by section 16 of 2024 Senate Bill No. 491, 9-2209, as amended by section
4		-	17 of 2024 Senate Bill No. 491, 16a-6-104, as amended by section 22 of 2024 Senate
5		-	Bill No. 491, 17-12a412, as amended by section 1 of 2024 Senate Bill No. 405, 44-
6		-	706, as amended by section 12 of 2024 House Bill No. 2760, 65-2401, as amended
7		-	by section 1 of 2023 House Bill No. 2358, 73-1210a, as amended by section 27 of
8		-	2024 House Bill No. 2760 and K.S.A. 2023 Supp. 38-2203, as amended by section 3
9		-	of 2024 House Bill No. 2536, 38-2212, as amended by section 8 of 2023 Senate Bill
10		-	No. 115, 38-2243, 65-536, 65-5808, 65-6129, as amended by section 21 of 2024
11		-	House Bill No. 2760, 79-32,117, as amended by section 2 of 2024 Senate Bill No.
12		-	360, and 79-3606, as amended by section 5 of 2023 House Bill No. 2098, and
13		-	repealing the existing sections; also repealing K.S.A. 9-508, as amended by section
14		-	11 of 2024 Senate Bill No. 491, 9-509, as amended by section 12 of 2024 Senate Bill
15		-	No. 491, 9-513e, as amended by section 13 of 2024 Senate Bill No. 491, 9-2201, as
16		-	amended by section 17 of 2024 House Bill No. 2247, 9-2209, as amended by section
17		-	21 of 2024 House Bill No. 2247, 16a-6-104, as amended by section 104 of 2024
18		-	House Bill No. 2247, 17-12a412, as amended by section 15 of 2024 House Bill No.
19		-	2562, 44-706, as amended by section 4 of 2024 House Bill No. 2570, 65-2401, as
20		-	amended by section 51 of 2024 Senate Bill No. 491, 73-1210a, as amended by
21		-	section 63 of 2024 Senate Bill No. 491, and K.S.A. 2023 Supp. 38-2203a, 38-2212,
22		-	as amended by section 1 of 2024 House Bill No. 2628, 38-2243a, 65-536a, 65-5808a,
23		-	65-6129, as amended by section 62 of 2024 Senate Bill No. 491, 75-5665a, 79-
24		-	32,117, as amended by section 18 of 2024 Senate Bill No. 410, 79-32,117, as
25		-	amended by section 9 of 2024 House Bill No. 2465, and 79-3606, as amended by
26		-	section 11 of 2024 House Bill No. 2465.
	3	+	By Committee on Financial Institutions and Insurance
	4	+	1-11
	5	+	AN ACT concerning insurance; relating to the uniform insurance agents
	6	+	licensure act; public adjusters licensing act; authorizing the
	7	+	commissioner of insurance to set the amount of certain fees; requiring
	8	+	information obtained from background checks, fingerprinting and
	9	+	criminal history records checks be used solely for the purpose of
	10	+	verifying the identification of an applicant and the fitness of an
	11	+	applicant to be issued a license as an insurance agent; amending K.S.A.
	12	+	40-4905, 40-4906 and 40-5505 and repealing the existing sections.
27	13		Be it enacted by the Legislature of the State of Kansas:
28		-	Section 1. On and after January 1, 2025, K.S.A. 9-2201, as
29		-	amended by section 16 of 2024 Senate Bill No. 491, is hereby amended
30		-	to read as follows: 9-2201. As used in this act:
31		-	(a) "Act" means the Kansas mortgage business act.
32		-	(b) "Amount financed" means the net amount of credit provided to
33		-	the consumer or on the consumer's behalf. The amount financed shall
34		-	be calculated as provided in rules and regulations adopted by the
35		-	commissioner pursuant to K.S.A. 9-2209, and amendments thereto.
36		-	(c) "Annual percentage rate" shall have the same meaning, be
37		-	interpreted in the same manner and be calculated using the same
38		-	methodology as prescribed by 15 U.S.C. § 1606.
39		-	(d) "Applicant" means a person who has submitted an application
40		-	for a license to engage in mortgage business or a person who has
41		-	submitted an application for registration to conduct mortgage business
42		-	in this state as a loan originator.
43		-	(b)(e) "Appraised value" means, with respect to any real estate at
44		-	any time:
45		-	(1) The total appraised value of the real estate, as reflected in the
46		-	most recent records of the tax assessor of the county in which the real
47		-	estate is located;
48		-	(2) the fair market value of the real estate, as reflected in a written
49		-	appraisal of the real estate performed by a Kansas licensed or certified
50		-	appraiser within the past 12 months; or
51		-	(3) in the case of a nonpurchase-money real estate transaction,
52		-	the estimated market value as determined through a method acceptable
53		-	to the commissioner. In determining the acceptability of the method, the
54		-	commissioner shall consider the reliability and impartiality of the
55		-	method under the circumstances. The commissioner may consider
56		-	industry standards or customs. A method shall not be acceptable if the
57		-	resulting value is predetermined or when the fee to be paid to the
58		-	method provider is contingent upon the property valuation reached or
59		-	upon the consequences resulting from the property valuation reached.
60		-	(f) "Balloon payment" means any required payment that is more
61		-	than twice as large as the average of all earlier scheduled payments.
62		-	(g) "Branch office" means a place of business, other than a
63		-	principal place of business, where the mortgage company maintains a
64		-	physical location for the purpose of conducting mortgage business with SENATE BILL No. 27—page 2
65		-	the public.
66		-	(c)(h) "Closed-end covered transaction" means the same as in 12
67		-	C.F.R. 1026.2(a)(10).
68		-	(i) "Closing costs" means:
69		-	(1) The actual fees paid to a public official or agency of the state
70		-	or federal government for filing, recording or releasing any instrument
71		-	relating to the debt; and
72		-	(2) bona fide and reasonable expenses incurred by the mortgage
73		-	company in connection with the making, closing, disbursing, extending,
74		-	readjusting or renewing the debt that are payable to third parties not
75		-	related to the mortgage company. Reasonable fees for an appraisal
76		-	made by the mortgage company or related party are permissible.
77		-	(j) (1) "Code mortgage rate" means the greater of:
78		-	(A) 12%; or
79		-	(B) the sum of:
80		-	(i) The required net yield published by the federal national
81		-	mortgage association for 60-day mandatory delivery whole-loan
82		-	commitments for 30-year fixed-rate mortgages with actual remittance
83		-	on the first day for which the required net yield was published in the
84		-	previous month; and
85		-	(ii) 5%.
86		-	(2) If the reference rate referred to in clause (i)(1)(B)(i) is
87		-	discontinued, becomes impractical to use, or is otherwise not readily
88		-	ascertainable for any reason, the commissioner may designate a
89		-	comparable replacement reference rate and, upon publishing notice of
90		-	the same, such replacement reference rate shall become the reference
91		-	rate referred to in clause (i)(1)(B)(i). The secretary of state shall
92		-	publish notice of the code mortgage rate not later than the second issue
93		-	of the Kansas register published each month.
94		-	(k) "Commissioner" means the state bank commissioner or
95		-	designee, who shall be the deputy commissioner of the consumer and
96		-	mortgage lending division of the office of the state bank commissioner.
97		-	(d)(l) "Consumer" means an individual to whom credit is offered
98		-	or granted under this act.
99		-	(m) "Covered transaction" means a mortgage loan that:
100		-	(1) Is a subordinate mortgage;
101		-	(2) has a loan-to-value ratio at the time when made that exceeds
102		-	100%, except for any loan guaranteed by a federal government agency
103		-	of the United States; or
104		-	(3) in the case of section 11 of 2024 House Bill No. 2247, and
105		-	amendments thereto, the annual percentage rate of the loan exceeds the
106		-	code mortgage rate.
107		-	(n) "Finance charge" means all charges payable directly or
108		-	indirectly by the consumer and imposed directly or indirectly by the
109		-	mortgage company as an incident to or as a condition of the extension
110		-	of credit. The finance charge shall be calculated as provided in rules
111		-	and regulations adopted by the commissioner pursuant to K.S.A. 9-
112		-	2209, and amendments thereto.
113		-	(o) "Individual" means a human being.
114		-	(e)(p) "Insufficient payment method" means any instrument as
115		-	defined in K.S.A. 84-3-104, and amendments thereto, drawn on any
116		-	financial institution for the payment of money and delivered in
117		-	payment, in whole or in part, of preexisting indebtedness of the drawer
118		-	or maker, which is refused payment by the drawee because the drawer
119		-	or maker does not have sufficient funds in or credits with the drawee to
120		-	pay the amount of the instrument upon presentation.
121		-	(q) "Installment" means a periodic payment required or permitted
122		-	by agreement in connection with a covered transaction.
123		-	(r) "License" means a license issued by the commissioner to SENATE BILL No. 27—page 3
124		-	engage in mortgage business as a mortgage company.
125		-	(f)(s) "Licensed mortgage company" means a mortgage company
126		-	that has been licensed as required by this act.
127		-	(t) "Licensee" means a person who is licensed by the
128		-	commissioner as a mortgage company.
129		-	(g)(u) "Loan originator" means an individual:
130		-	(1) Who engages in mortgage business on behalf of a single
131		-	mortgage company;
132		-	(2) whose conduct of mortgage business is the responsibility of
133		-	the licensee;
134		-	(3) who takes a residential mortgage loan application or offers or
135		-	negotiates terms of a residential mortgage loan for compensation or
136		-	gain or in the expectation of compensation or gain; and
137		-	(4) whose job responsibilities include contact with borrowers
138		-	during the loan origination process, which can include soliciting,
139		-	negotiating, acquiring, arranging or making mortgage loans for others,
140		-	obtaining personal or financial information, assisting with the
141		-	preparation of mortgage loan applications or other documents, quoting
142		-	loan rates or terms or providing required disclosures. It does not
143		-	include any individual engaged solely as a loan processor or
144		-	underwriter.
145		-	(h)(v) "Loan processor or underwriter" means an individual who
146		-	performs clerical or support duties as an employee at the direction and
147		-	subject to the supervision and instruction of a person registered or
148		-	exempt from registration under this act.
149		-	(1) For purposes of this subsection, the term "clerical or support
150		-	duties" may include subsequent to the receipt of a mortgage loan
151		-	application:
152		-	(A) The receipt, collection, distribution and analysis of
153		-	information common for the processing or underwriting of a residential
154		-	mortgage loan; and
155		-	(B) communicating with a consumer to obtain the information
156		-	necessary for the processing or underwriting of a loan, to the extent that
157		-	such communication does not include offering or negotiating loan rates
158		-	or terms or counseling consumers about residential mortgage loan rates
159		-	or terms.
160		-	(2) An individual engaging solely in loan processor or underwriter
161		-	activities shall not represent to the public, through advertising or other
162		-	means of communicating or providing information including the use of
163		-	business cards, stationery, brochures, signs, rate lists or other
164		-	promotional items, that such individual can or will perform any of the
165		-	activities of a loan originator.
166		-	(i)(w) "Loan-to-value ratio" means a fraction expressed as a
167		-	percentage at any time:
168		-	(1) The numerator of which is the aggregate unpaid principal
169		-	balance of all loans secured by a mortgage; and
170		-	(2) the denominator of which is the appraised value of the real
171		-	estate.
172		-	(x) "Mortgage business" means engaging in, or holding out to the
173		-	public as willing to engage in, for compensation or gain, or in the
174		-	expectation of compensation or gain, directly or indirectly, the business
175		-	of making, originating, servicing, soliciting, placing, negotiating,
176		-	acquiring, selling, arranging for others, or holding the rights to or
177		-	offering to solicit, place, negotiate, acquire, sell or arrange for others,
178		-	mortgage loans in the primary market.
179		-	(j)(y) "Mortgage company" means a person engaged in mortgage
180		-	business.
181		-	(k)(z) "Mortgage loan" means a loan or agreement to extend credit
182		-	made to one or more individuals persons which is secured by a first or SENATE BILL No. 27—page 4
183		-	subordinate mortgage, deed of trust, contract for deed or other similar
184		-	instrument or document representing a security interest or lien, except
185		-	as provided for in K.S.A. 60-1101 through 60-1110, and amendments
186		-	thereto, upon any lot intended for residential purposes or a one-to-four
187		-	family dwelling as defined in 15 U.S.C. § 1602(w), located in this state,
188		-	occupied or intended to be occupied for residential purposes by the
189		-	owner, including the renewal or refinancing of any such loan.
190		-	(l)(aa) "Mortgage loan application" means the submission of a
191		-	consumer's financial information, including, but not limited to, the
192		-	consumer's name, income and social security number, to obtain a credit
193		-	report, the property address, an estimate of the value of the property
194		-	and the mortgage loan amount sought for the purpose of obtaining an
195		-	extension of credit.
196		-	(m)(bb) "Mortgage servicer" means any person engaged in
197		-	mortgage servicing.
198		-	(n)(cc) "Mortgage servicing" means collecting payment, remitting
199		-	payment for another or the right to collect or remit payment of any of
200		-	the following: Principal; interest; tax; insurance; or other payment
201		-	under a mortgage loan.
202		-	(o)(dd) "Nationwide mortgage licensing system and registry"
203		-	means a mortgage licensing system developed and maintained by the
204		-	conference of state bank supervisors and the American association of
205		-	residential mortgage regulators for the licensing and registration of
206		-	mortgage loan originators.
207		-	(p)(ee) "Not-for-profit" means a business entity that is granted tax
208		-	exempt status by the internal revenue service.
209		-	(q)(ff) "Open-end covered transaction" means a covered
210		-	transaction in which a mortgage company:
211		-	(1) Reasonably contemplates repeated transactions;
212		-	(2) may impose a finance charge from time to time on an
213		-	outstanding unpaid balance; and
214		-	(3) extends an amount of credit to the consumer during the term of
215		-	the mortgage loan, up to any set limit, that is generally made available
216		-	to the extent that any outstanding balance is repaid.
217		-	(gg) "Person" means any individual, sole proprietorship,
218		-	corporation, partnership, trust, association, joint venture, pool
219		-	syndicate, unincorporated organization or other form of entity, however
220		-	organized.
221		-	(r)(hh) "Prepaid finance charge" means any finance charge paid
222		-	separately before or at consummation of a transaction or withheld from
223		-	the proceeds of the credit at any time.
224		-	(ii) "Principal" of a mortgage loan means the total of the amount
225		-	financed and the prepaid finance charges, except that prepaid finance
226		-	charges are not added to the amount financed to the extent such
227		-	prepaid finance charges are paid separately by the consumer.
228		-	(jj) "Primary market" means the market wherein mortgage
229		-	business is conducted including activities conducted by any person who
230		-	assumes or accepts any mortgage business responsibilities of the
231		-	original parties to the transaction.
232		-	(s)(kk) "Principal place of business" means a place of business
233		-	where mortgage business is conducted, which has been designated by a
234		-	licensee as the primary headquarters from which all mortgage business
235		-	and administrative activities are managed and directed.
236		-	(t)(ll) "Promotional items" means pens, pencils, hats and other
237		-	such novelty items.
238		-	(u)(mm) "Registrant" means any individual who holds a valid
239		-	registration to conduct mortgage business in this state as a loan
240		-	originator on behalf of a licensed mortgage company.
241		-	(v)(nn) "Related" with respect to a person means: SENATE BILL No. 27—page 5
242		-	(1) A person directly or indirectly controlling, controlled by or
243		-	under common control of another person;
244		-	(2) an officer or director employed by the person performing
245		-	similar functions with another person;
246		-	(3) a relative by blood, adoption or marriage of a person within
247		-	the fourth degree of relationship; or
248		-	(4) an individual who shares the same home with such person.
249		-	(oo) "Remote location" means a location other than the principal
250		-	place of business or a branch office where a licensed mortgage
251		-	company's employee or independent contractor is authorized by such
252		-	company to engage in mortgage business. A remote location is not
253		-	considered a branch office.
254		-	(w)(pp) "Unique identifier" means a number or other identifier
255		-	assigned by protocols established by the nationwide mortgage licensing
256		-	system and registry.
257		-	Sec. 2. On and after January 1, 2025, K.S.A. 9-2209, as amended
258		-	by section 17 of 2024 Senate Bill No. 491, is hereby amended to read
259		-	as follows: 9-2209. (a) The commissioner may exercise the following
260		-	powers:
261		-	(1) Adopt rules and regulations as necessary to carry out the intent
262		-	and purpose of this act and to implement the requirements of applicable
263		-	federal law;
264		-	(2) make investigations and examinations of the licensee's or
265		-	registrant's operations, books and records as the commissioner deems
266		-	necessary for the protection of the public and control access to any
267		-	documents and records of the licensee or registrant under examination
268		-	or investigation;
269		-	(3) charge reasonable costs of investigation, examination and
270		-	administration of this act, to be paid by the applicant, licensee or
271		-	registrant. The commissioner shall establish such fees in such amounts
272		-	as the commissioner may determine to be sufficient to meet the budget
273		-	requirements of the commissioner for each fiscal year. Charges for
274		-	administration of this act shall be based on the licensee's loan volume;
275		-	(4) order any licensee or registrant to cease any activity or practice
276		-	that the commissioner deems to be deceptive, dishonest, violative of
277		-	state or federal law or unduly harmful to the interests of the public;
278		-	(5) exchange any information regarding the administration of this
279		-	act with any agency of the United States or any state that regulates the
280		-	licensee or registrant or administers statutes, rules and regulations or
281		-	programs related to mortgage business and to enter into information
282		-	sharing arrangements with other governmental agencies or associations
283		-	representing governmental agencies that are deemed necessary or
284		-	beneficial to the administration of this act;
285		-	(6) disclose to any person or entity that an applicant's, licensee's or
286		-	registrant's application, license or registration has been denied,
287		-	suspended, revoked or refused renewal;
288		-	(7) require or permit any person to file a written statement, under
289		-	oath or otherwise as the commissioner may direct, setting forth all the
290		-	facts and circumstances concerning any apparent violation of this act,
291		-	or any rule and regulation promulgated thereunder or any order issued
292		-	pursuant to this act;
293		-	(8) receive, as a condition in settlement of any investigation or
294		-	examination, a payment designated for consumer education to be
295		-	expended for such purpose as directed by the commissioner;
296		-	(9) require that any applicant, registrant, licensee or other person
297		-	successfully passes a standardized examination designed to establish
298		-	such person's knowledge of mortgage business transactions and all
299		-	applicable state and federal law. Such examinations shall be created and
300		-	administered by the commissioner or the commissioner's designee, and SENATE BILL No. 27—page 6
301		-	may be made a condition of application approval or application
302		-	renewal;
303		-	(10) require that any applicant, licensee, registrant or other person
304		-	complete a minimum number of prelicensing education hours and
305		-	complete continuing education hours on an annual basis. Prelicensing
306		-	and continuing education courses shall be approved by the
307		-	commissioner, or the commissioner's designee, and may be made a
308		-	condition of application approval and renewal;
309		-	(11) require fingerprinting of any applicant, registrant or licensee
310		-	in accordance with section 2 of 2024 Senate Bill No. 491, and
311		-	amendments thereto. For the purposes of this section and in order to
312		-	reduce the points of contact that the federal bureau of investigation may
313		-	have to maintain with the individual states, the commissioner may use
314		-	the nationwide mortgage licensing system and registry as a channeling
315		-	agent for requesting information from and distributing information to
316		-	the department of justice or any governmental agency;
317		-	(12) refer such evidence as may be available concerning any
318		-	violation of this act or of any rule and regulation or order hereunder to
319		-	the attorney general, or in consultation with the attorney general to the
320		-	proper county or district attorney, who may in such prosecutor's
321		-	discretion, with or without such a referral, institute the appropriate
322		-	criminal proceedings under the laws of this state;
323		-	(13) issue and apply to enforce subpoenas in this state at the
324		-	request of a comparable official of another state if the activities
325		-	constituting an alleged violation for which the information is sought
326		-	would be a violation of the Kansas mortgage business act if the
327		-	activities had occurred in this state;
328		-	(14) use the nationwide mortgage licensing system and registry as
329		-	a channeling agent for requesting and distributing any information
330		-	regarding loan originator registration or mortgage company licensing
331		-	to and from any source so directed by the commissioner;
332		-	(15) establish relationships or contracts with the nationwide
333		-	mortgage licensing system and registry or other entities to collect and
334		-	maintain records and process transaction fees or other fees related to
335		-	applicants, licensees, registrants or other persons subject to this act and
336		-	to take such other actions as may be reasonably necessary to participate
337		-	in the nationwide mortgage licensing system and registry. The
338		-	commissioner shall regularly report violations of law, as well as
339		-	enforcement actions and other relevant information to the nationwide
340		-	mortgage licensing system and registry;
341		-	(16) require any licensee or registrant to file reports with the
342		-	nationwide mortgage licensing system and registry in the form
343		-	prescribed by the commissioner or the commissioner's designee;
344		-	(17) receive and act on complaints, take action designed to obtain
345		-	voluntary compliance with the provisions of the Kansas mortgage
346		-	business act or commence proceedings on the commissioner's own
347		-	initiative;
348		-	(18) provide guidance to persons and groups on their rights and
349		-	duties under the Kansas mortgage business act;
350		-	(19) enter into any informal agreement with any mortgage
351		-	company for a plan of action to address violations of law. The adoption
352		-	of an informal agreement authorized by this paragraph shall not be
353		-	subject to the provisions of K.S.A. 77-501 et seq., and amendments
354		-	thereto, or K.S.A. 77-601 et seq., and amendments thereto. Any
355		-	informal agreement authorized by this paragraph shall not be
356		-	considered an order or other agency action, and shall be considered
357		-	confidential examination material pursuant to K.S.A. 9-2217, and
358		-	amendments thereto. All such examination material shall also be
359		-	confidential by law and privileged, shall not be subject to the open SENATE BILL No. 27—page 7
360		-	records act, K.S.A. 45-215 et seq., and amendments thereto, shall not
361		-	be subject to subpoena and shall not be subject to discovery or
362		-	admissible in evidence in any private civil action; and
363		-	(20) issue, amend and revoke written administrative guidance
364		-	documents in accordance with the applicable provisions of the Kansas
365		-	administrative procedure rules and regulations filing act.
366		-	(b) For the purpose of any examination, investigation or
367		-	proceeding under this act, the commissioner or any officer designated
368		-	by the commissioner may administer oaths and affirmations, subpoena
369		-	witnesses, compel such witnesses' attendance, adduce evidence and
370		-	require the production of any matter that is relevant to the examination
371		-	or investigation, including the existence, description, nature, custody,
372		-	condition and location of any books, documents or other tangible things
373		-	and the identity and location of persons having knowledge of relevant
374		-	facts, or any other matter reasonably calculated to lead to the discovery
375		-	of relevant information or items.
376		-	(c) In case of contumacy by, or refusal to obey a subpoena issued
377		-	to any person, any court of competent jurisdiction, upon application by
378		-	the commissioner, may issue to that person an order requiring the
379		-	person to appear before the commissioner, or the officer designated by
380		-	the commissioner, there, to produce documentary evidence if so
381		-	ordered or to give evidence touching the matter under investigation or
382		-	in question. Any failure to obey the order of the court may be punished
383		-	by the court as a contempt of court.
384		-	(d) No person is excused from attending and testifying or from
385		-	producing any document or record before the commissioner or in
386		-	obedience to the subpoena of the commissioner or any officer
387		-	designated by the commissioner or in any proceeding instituted by the
388		-	commissioner, on the ground that the testimony or evidence,
389		-	documentary or otherwise, required of the person may tend to
390		-	incriminate the person or subject the person to a penalty or forfeiture.
391		-	No individual may be prosecuted or subjected to any penalty or
392		-	forfeiture for or on account of any transaction, matter or thing
393		-	concerning which such person is compelled, after claiming privilege
394		-	against self-incrimination, to testify or produce evidence, documentary
395		-	or otherwise, except that the individual so testifying shall not be
396		-	exempt from prosecution and punishment for perjury committed in so
397		-	testifying.
398		-	(e) Except for refund of an excess charge, no liability is imposed
399		-	under the Kansas mortgage business act for an act done or omitted in
400		-	conformity with a rule and regulation or written administrative
401		-	interpretation guidance document of the commissioner in effect at the
402		-	time of the act or omission, notwithstanding that after the act or
403		-	omission, the rule and regulation or written administrative
404		-	interpretation may be determined by judicial or other authority to be
405		-	invalid for any reason.
406		-	(f) The grant of powers to the commissioner in this article does
407		-	not affect remedies available to consumers under K.S.A. 9-2201 et seq.,
408		-	and amendments thereto, or under other principles of law or equity.
409		-	Sec. 3. On and after January 1, 2025, K.S.A. 16a-6-104, as
410		-	amended by section 22 of 2024 Senate Bill No. 491, is hereby amended
411		-	to read as follows: 16a-6-104. This act shall be administered by the
412		-	deputy commissioner for consumer and mortgage lending who is also
413		-	referred to as the administrator.
414		-	(1) In addition to other powers granted by this act, the
415		-	administrator within the limitations provided by law may:
416		-	(a) Receive and act on complaints, take action designed to obtain
417		-	voluntary compliance with the provisions of K.S.A. 16a-1-101 to 16a-
418		-	9-102, inclusive et seq., and amendments thereto, or commence SENATE BILL No. 27—page 8
419		-	proceedings on the administrator's own initiative;
420		-	(b) counselprovide guidance to persons and groups on their rights
421		-	and duties under K.S.A. 16a-1-101 to 16a-9-102, inclusive et seq., and
	14	+	Section 1. K.S.A. 40-4905 is hereby amended to read as follows: 40-
	15	+	4905. (a) Subject to the provisions of K.S.A. 40-4904, and amendments
	16	+	thereto, it shall be unlawful for any person to sell, solicit or negotiate any
	17	+	insurance within this state unless such person has been issued a license as
	18	+	an insurance agent in accordance with this act.
	19	+	(b) Any person applying for a resident insurance agent license shall
	20	+	make application on a form prescribed by the commissioner. The applicant
	21	+	shall declare under penalty of perjury that the statements made in the
	22	+	application are true, correct and complete to the best of the applicant's
	23	+	knowledge and belief. Before approving the application, the commissioner
	24	+	shall determine that the applicant:
	25	+	(1) Is at least 18 years of age;
	26	+	(2) has not committed any act that is grounds for denial pursuant to
	27	+	this section or suspension or revocation pursuant to K.S.A. 40-4909, and
422	28		amendments thereto;
423		-	(c) establish or support programs for the education of consumers
424		-	with respect to credit practices and problems and:
425		-	(A) As a condition in settlements of investigations or
426		-	examinations, the administrator may receive require a payment
427		-	designated for consumer education to be expended as directed by the
428		-	administrator for such purpose; and
429		-	(B) the administrator may fund consumer education programs
430		-	from operating funds in an amount up to 1% of operating funds;
431		-	(d) make studies appropriate to effectuate the purposes and
432		-	policies of K.S.A. 16a-1-101 to 16a-9-102, inclusive et seq., and
	29	+	(3) has paid a nonrefundable fee in the amount of set by the
	30	+	commissioner in an amount not to exceed $30; and
	31	+	(4) has successfully passed the examination for each line of authority
	32	+	for which the applicant has applied.
	33	+	(c) If the applicant is a business entity, then, in addition to the
	34	+	requirements of subsection (a), the commissioner shall also determine the
	35	+	name and address of a licensed agent who shall be responsible for the
	36	+	business entity's compliance with the insurance laws of this state and the
	37	+	rules and regulations promulgated thereunder.
	38	+	(d) The commissioner may require the applicant to furnish any
	39	+	document or other material reasonably necessary to verify the information
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	76	+	contained in an application.
	77	+	(e) Each insurer that sells, solicits or negotiates any form of limited
	78	+	line credit insurance shall provide a program of instruction that may be
	79	+	approved by the commissioner to each individual employed by or acting
	80	+	on behalf of such insurer to sell, solicit or negotiate limited line credit
	81	+	insurance.
	82	+	(f) (1) Each person or entity licensed in this state as an insurance
	83	+	agent shall report the following to the commissioner within 30 calendar
	84	+	days of occurrence:
	85	+	(A) Each disciplinary action on the agent's license or licenses by the
	86	+	insurance regulatory agency of any other state or territory of the United
	87	+	States;
	88	+	(B) each disciplinary action on an occupational license held by the
	89	+	licensee, other than an insurance agent's license, by the appropriate
	90	+	regulatory authority of this or any other jurisdiction;
	91	+	(C) each judgment or injunction entered against the licensee on the
	92	+	basis of a violation of any insurance law or conduct involving fraud, deceit
	93	+	or misrepresentation;
	94	+	(D) all details of any conviction of a misdemeanor or felony other
	95	+	than minor traffic violations. The details shall include the name of the
	96	+	arresting agency, the location and date of the arrest, the nature of the
	97	+	charge or charges, the court in which the case was tried and the disposition
	98	+	rendered by the court;
	99	+	(E) each change of name. If the change of name is effected by court
	100	+	order, a copy of the court order shall be furnished to the commissioner;
	101	+	(F) each change in residence or mailing address, email address or
	102	+	telephone number;
	103	+	(G) each change in the name or address of the agency with which the
	104	+	agent is associated; and
	105	+	(H) each termination of a business relationship with an insurer if the
	106	+	termination is for cause, including the reason for the termination of the
	107	+	business relationship with such insurer.
	108	+	(2) Each person or entity licensed in this state as an insurance agent
	109	+	shall provide to the commissioner, upon request, a current listing of
	110	+	company affiliations and affiliated insurance agents.
	111	+	(3) Each business entity licensed in this state as an insurance agent
	112	+	shall report each change in legal or mailing address, email address and
	113	+	telephone number to the commissioner within 30 days of occurrence.
	114	+	(4) Each business entity licensed in this state as an insurance agent
	115	+	shall report each change in the name and address of the licensed agent who
	116	+	shall be responsible for the business entity's compliance with the insurance
	117	+	laws of this state to the commissioner within 30 days of occurrence.
	118	+	(g) Any applicant whose application for a license is denied shall be
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	162	+	given an opportunity for a hearing in accordance with the provisions of the
	163	+	Kansas administrative procedure act.
	164	+	(h) (1) The commissioner may require a person applying for a
	165	+	resident insurance agent license to be fingerprinted and submit to a state
	166	+	and national criminal history record check. The fingerprints shall be used
	167	+	to identify the applicant and to determine whether the applicant has a
	168	+	record of criminal arrests and convictions in this state or other
	169	+	jurisdictions. The commissioner is authorized to submit the fingerprints to
	170	+	the Kansas bureau of investigation and the federal bureau of investigation
	171	+	for a state and national criminal history record check. Local and state law
	172	+	enforcement officers and agencies shall assist the commissioner in the
	173	+	taking and processing of fingerprints of applicants and shall release all
	174	+	records of an applicant's arrests and convictions to the commissioner.
	175	+	(2) The commissioner may conduct, or have a third party conduct, a
	176	+	background check on a person applying for a resident insurance agent
	177	+	license.
	178	+	(3) Whenever the commissioner requires fingerprinting, a
	179	+	background check, or both, any associated costs shall be paid by the
	180	+	applicant.
	181	+	(4) The commissioner may shall use the information obtained from a
	182	+	background check, fingerprinting and the applicant's criminal history only
	183	+	for purposes of verifying the identification of any applicant and in the
	184	+	official determination of the fitness of the applicant to be issued a license
	185	+	as an insurance agent in accordance with this act.
	186	+	(5) A person applying for a resident insurance agent license who has
	187	+	been fingerprinted and has submitted to a state and national criminal
	188	+	history record check within the past 12 months in connection with the
	189	+	successful issuance or renewal of any other state-issued license may
	190	+	submit proof of such good standing to the commissioner in lieu of
	191	+	submitting to the fingerprinting and criminal history record checks
	192	+	described in subsections (h)(1) and (h)(2).
	193	+	(i) Not later than December 1 of each year, the commissioner shall
	194	+	set and publish in the Kansas register the application fee required
	195	+	pursuant to subsection (b) for the next calendar year.
	196	+	Sec. 2. K.S.A. 40-4906 is hereby amended to read as follows: 40-
	197	+	4906. (a) Unless denied licensure pursuant to K.S.A. 40-4909, and
	198	+	amendments thereto, a nonresident person shall receive a nonresident
	199	+	agent license if:
	200	+	(1) Such person is currently licensed as a resident and in good
	201	+	standing in such person's home state;
	202	+	(2) such person has submitted the proper request for licensure and has
	203	+	paid to the commissioner a nonrefundable application fee of not to exceed
	204	+	$30 and a biennial fee of not to exceed $50;
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	248	+	(3) such person has submitted or transmitted to the commissioner of
	249	+	insurance a copy of the application for licensure that such person
	250	+	submitted to such person's home state, or in lieu of the same, a completed
	251	+	application on a form prescribed by the commissioner; and
	252	+	(4) such person's home state awards a nonresident agent license to
	253	+	residents of this state on the same basis.
	254	+	(b) The commissioner may verify the insurance agent's licensing
	255	+	status through the producer database maintained by the NAIC, its affiliates
	256	+	or subsidiaries.
	257	+	(c) (1) Any nonresident agent who is licensed in this state and who
	258	+	moves from one state to another state or a resident agent who moves from
	259	+	this state to another state shall file with the commissioner within 30 days a
	260	+	change of address and provide certification from the new resident state.
	261	+	(2) Any insurance agent who resides in this state and who moves
	262	+	from this state to another state shall file with the commissioner within 30
	263	+	days a change of address and provide certification from the new resident
	264	+	state.
	265	+	(3) No fee or license application shall be required for any filing
	266	+	required by this subsection.
	267	+	(d) Subject to the provisions of subsection (a), any person licensed as
	268	+	a surplus lines agent in such person's home state shall receive a
	269	+	nonresident surplus lines agent license. Except as provided in subsection
	270	+	(a), nothing in this section shall be construed to amend or supersede any
	271	+	provision of K.S.A. 40-246b, and amendments thereto.
	272	+	(e) Subject to the provisions of subsection (a), any person licensed as
	273	+	a limited line credit insurance or other type of limited lines agent in such
	274	+	person's home state shall receive a nonresident limited lines agent license
	275	+	in this state granting the same scope of authority as granted under the
	276	+	license issued by the such insurance agent's home state.
	277	+	(f) Not later than December 1 of each year, the commissioner shall
	278	+	set and publish in the Kansas register the application fee required
	279	+	pursuant to subsection (a) for the next calendar year.
	280	+	Sec. 3. K.S.A. 40-5505 is hereby amended to read as follows: 40-
	281	+	5505. (a) Before issuing a public adjuster license to an applicant under the
	282	+	public adjusters licensing act, the commissioner shall find that the
	283	+	applicant:
	284	+	(1) Is eligible to designate this state as the applicant's home state or is
	285	+	a nonresident who is not eligible for a license under K.S.A. 40-5508, and
433	286		amendments thereto;
434		-	(e) adopt, amend and revoke rules and regulations to carry out the
435		-	specific provisions of K.S.A. 16a-1-101 to 16a-9-102, inclusive et seq.,
436		-	and amendments thereto, and to implement the requirements of the
437		-	secure and fair enforcement for mortgage licensing act of 2008 (P.L.
438		-	110-289);
439		-	(f) issue, amend and revoke written administrative interpretations.
440		-	Such written administrative interpretations shall be approved by the
441		-	attorney general and published in the Kansas register within 15 days of
442		-	issuance. The administrator shall annually publish all written
443		-	administrative interpretations in effect;
444		-	(g) maintain offices within this state;
445		-	(h) appoint any necessary attorneys, hearing examiners, clerks,
446		-	and other employees and agents and fix their set such employees'
447		-	compensation, and authorize attorneys appointed under this section to
448		-	appear for and represent the administrator in court;
449		-	(i) examine periodically at intervals the administrator deems
450		-	appropriate the loans, business and records of every licensee, registrant
451		-	or person filing notification pursuant to K.S.A. 16a-6-201 through 16a-
452		-	6-203, and amendments thereto or consumer credit filer, except
453		-	licensees which that are supervised financial organizations. The official
454		-	or agency responsible for the supervision of each supervised financial
455		-	organization shall examine the loans, business and records of each such
456		-	organization in the manner and periodically at intervals prescribed by
457		-	the administrator. In addition, for the purpose of discovering violations
458		-	of K.S.A. 16a-1-101 through 16a-9-102 et seq., and amendments
459		-	thereto, or securing information lawfully required, the administrator or
460		-	the official or agency to whose supervision the organization is subject
461		-	to K.S.A. 16a-6-105, and amendments thereto, may at any time
462		-	investigate the loans, business and records of any supervised lender.
463		-	For examination purposes the administrator shall have free and
464		-	reasonable access to the offices, places of business and records of the
465		-	lender, registrant or person filing notification licensee or consumer
466		-	credit filer and the administrator may control access to any documents
467		-	and records of a licensee, registrant or person filing notification under
468		-	examination or consumer credit filer;
469		-	(j) refer such evidence as may be available concerning violations
470		-	of this act or of any rule and regulation or order to the attorney general
471		-	or in consultation with the attorney general to the proper county or
472		-	district attorney, who may in the prosecutor's discretion, with or
473		-	without such a reference referral, institute the appropriate criminal
474		-	proceedings under this act. Upon receipt of such reference, the attorney
475		-	general or the county attorney or district attorney may request that a
476		-	duly employed attorney of the administrator prosecute or assist in the
477		-	prosecution of such violation on behalf of the state. Upon approval of SENATE BILL No. 27—page 9
478		-	the administrator, such employee shall be appointed special prosecutor
479		-	for the attorney general or the county attorney or district attorney to
480		-	serve without compensation from the attorney general or the county
481		-	attorney or district attorney. Such special prosecutor shall have all the
482		-	powers and duties prescribed by law for assistant attorneys general or
483		-	assistant county or district attorneys, and such other powers and duties
484		-	as are lawfully delegated to such special prosecutors by the attorney
485		-	general or the county attorney or district attorney the laws of this state;
486		-	(k) if deemed necessary by the administrator, require
487		-	fingerprinting of any applicant in accordance with section 2 of 2024
488		-	Senate Bill No. 491, and amendments thereto. For purposes of this
489		-	section and in order to reduce the points of contact which the federal
490		-	bureau of investigation may have to maintain with the individual states,
491		-	the administrator may use the nationwide mortgage licensing system
492		-	and registry as a channeling agent for requesting information from and
493		-	distributing information to the department of justice or any
494		-	governmental agency. As used in this paragraph, "applicant" means a
495		-	licensee, a member of a licensee if such licensee is a copartnership or
496		-	association, an officer or director if such licensee is a corporation or an
497		-	agent or other person acting on behalf of a licensee;
498		-	(l) exchange information regarding the administration of this act
499		-	with any agency of the United States or any state which regulates the
500		-	licensee, registrant or person required to file notification, or consumer
501		-	credit filer who administers statutes, rules and regulations or other
502		-	programs related to consumer credit and to enter into information
503		-	sharing arrangements with other governmental agencies or associations
504		-	representing governmental agencies which are deemed necessary or
505		-	beneficial to the administration of this act;
506		-	(m) require that any applicant, licensee, registrant or other person
507		-	complete a minimum number of prelicensing education hours and
508		-	complete continuing education hours on an annual basis. Prelicensing
509		-	and continuing education courses shall be approved by the
510		-	administrator or the administrator's designee and may be made a
511		-	condition of the application approval and renewal;
512		-	(n) require that any applicant, licensee, registrant or other person
513		-	successfully pass a standardized examination designed to establish such
514		-	person's knowledge of residential mortgage loan origination
515		-	transactions and all applicable state and federal law. Such examinations
516		-	shall be created and administered by the administrator or the
517		-	administrator's designee and may be made a condition of application
518		-	approval;
519		-	(o) use the nationwide mortgage licensing system and registry as a
520		-	channeling agent for requesting and distributing any information
521		-	regarding residential mortgage loan originator registration or
522		-	supervised lender licensing to and from any source so directed by the
523		-	administrator;
524		-	(p)(n) establish relationships or contracts with the nationwide
525		-	mortgage licensing system and registry or other entities to collect and
526		-	maintain records and process transaction fees or other fees related to
527		-	applicants, licensees, registrants or other persons subject to the act and
528		-	to take such other actions as may be reasonably necessary to participate
529		-	in the nationwide mortgage licensing system and registry. The
530		-	administrator shall regularly report violations of law, as well as
531		-	enforcement actions and other relevant information, to the nationwide
532		-	mortgage licensing system and registry, and make publicly available
533		-	the proposed budget, fees, and audited financial statements of the
534		-	nationwide mortgage licensing system and registry as may be prepared
535		-	by the nationwide mortgage licensing system and registry and provided
536		-	to the administrator; SENATE BILL No. 27—page 10
537		-	(q) require that any residential mortgage loan originator applicant,
538		-	registrant or other person successfully pass a standardized examination
539		-	designed to establish such person's knowledge of mortgage transactions
540		-	and all applicable state and federal law. Such examinations shall be
541		-	created and administered by the administrator or the administrator's
542		-	designee, and may be made a condition of application approval or
543		-	application renewal;
544		-	(r) require that any mortgage loan originator applicant, registrant
545		-	or other person complete a minimum number of prelicensing education
546		-	hours and complete continuing education hours on an annual or
547		-	biannual basis. Prelicensing and continuing education courses shall be
548		-	approved by the administrator or the administrator's designee and may
549		-	be made a condition of application approval and renewal; and
550		-	(s)(o) require any licensee or registrant to file reports with the
551		-	nationwide mortgage licensing system and registry in the form
552		-	prescribed by the administrator or the administrator's designee.
553		-	(2) The administrator shall enforce the provisions of this act and
554		-	the rules and regulations and interpretations adopted thereunder with
555		-	respect to a creditor, unless the creditor's compliance is regulated
556		-	exclusively or primarily by another state or federal agency.
557		-	(3) To keep the administrator's rules and regulations in harmony
558		-	with the rules of administrators in other jurisdictions which enact the
559		-	revised uniform consumer credit code, the administrator, so far as is
560		-	consistent with the purposes, policies and provisions of K.S.A. 16a-1-
561		-	101 to 16a-9-102, inclusive et seq., and amendments thereto, may:
562		-	(a) Before adopting, amending and revoking rules and regulations,
563		-	advise and consult with administrators in other jurisdictions which
564		-	enact the uniform consumer credit code; and
565		-	(b) in adopting, amending and revoking rules and regulations, take
566		-	into consideration the rules of administrators in other jurisdictions
567		-	which enact the revised uniform consumer credit code.
568		-	(4) Except for refund of an excess charge, no liability is imposed
569		-	under K.S.A. 16a-1-101 to 16a-9-102, inclusive et seq., and
570		-	amendments thereto, for an act done or omitted in conformity with a
571		-	rule and regulation or written administrative interpretation of the
572		-	administrator in effect at the time of the act or omission
573		-	notwithstanding that after the act or omission the rule and regulation or
574		-	written administrative interpretation may be determined by judicial or
575		-	other authority to be invalid for any reason.
576		-	(5) The administrator prior to December 1 of each year shall
577		-	establish such fees as are authorized under the provisions of K.S.A.
578		-	16a-1-101 to 16a-9-102, inclusive et seq., and amendments thereto, for
579		-	the ensuing calendar year in such amounts as the administrator may
580		-	determine to be sufficient to meet the budget requirements of the
581		-	administrator for each fiscal year.
582		-	Sec. 4. K.S.A. 17-12a412, as amended by section 1 of 2024 Senate
583		-	Bill No. 405, is hereby amended to read as follows: 17-12a412. (a)
584		-	Disciplinary conditions–applicants. An order issued under this act may
585		-	deny an application, or may condition or limit registration of an
586		-	applicant to be a broker-dealer, agent, investment adviser, or investment
587		-	adviser representative if the administrator finds that the order is in the
588		-	public interest and that there is a ground for discipline under subsection
589		-	(d) against the applicant or, if the applicant is a broker-dealer or
590		-	investment adviser, against any partner, officer, director, person having
591		-	a similar status or performing similar functions, or person directly or
592		-	indirectly controlling the broker-dealer or investment adviser.
593		-	(b) Disciplinary conditions — registrants. An order issued under
594		-	this act may revoke, suspend, condition, or limit the registration of a
595		-	registrant if the administrator finds that the order is in the public SENATE BILL No. 27—page 11
596		-	interest and that there is a ground for discipline under subsection (d)
597		-	against the registrant or, if the registrant is a broker-dealer or
598		-	investment adviser, against any partner, officer, or director, any person
599		-	having a similar status or performing similar functions, or any person
600		-	directly or indirectly controlling the broker-dealer or investment
601		-	adviser. However, the administrator:
602		-	(1) May not institute a revocation or suspension proceeding under
603		-	this subsection based on an order issued by another state that is
604		-	reported to the administrator or designee later than one year after the
605		-	date of the order on which it is based; and
606		-	(2) under subsection (d)(5)(A) and (d)(5)(B), may not issue an
607		-	order on the basis of an order under the state securities act of another
608		-	state unless the other order was based on conduct for which subsection
609		-	(d) would authorize the action had the conduct occurred in this state.
610		-	(c) Disciplinary penalties — registrants. If the administrator finds
611		-	that the order is in the public interest and that there is a ground for
612		-	discipline under subsection (d)(1) through (d)(6), (d)(8), (d)(9), (d)(10),
613		-	(d)(12) or (d)(13) against a registrant or, if the registrant is a broker-
614		-	dealer or investment adviser, against any partner, officer, or director,
615		-	any person having similar functions, or any person directly or indirectly
616		-	controlling the broker-dealer or investment adviser, then the
617		-	administrator may enter an order against the registrant containing one
618		-	or more of the following sanctions or remedies:
619		-	(1) A censure;
620		-	(2) a bar or suspension from association with a broker-dealer or
621		-	investment adviser registered in this state;
622		-	(3) a civil penalty up to $25,000 for each violation. If any person
623		-	is found to have violated any provision of this act, and such violation is
624		-	committed against elder or disabled persons, as defined in K.S.A. 50-
625		-	676, and amendments thereto, in addition to any civil penalty otherwise
626		-	provided by law, the administrator may impose an additional penalty
627		-	not to exceed $15,000 for each such violation. The total penalty against
628		-	a person shall not exceed $1,000,000;
629		-	(4) an order requiring the registrant to pay restitution for any loss
630		-	or disgorge any profits arising from a violation, including, in the
631		-	administrator's discretion, the assessment of interest from the date of
632		-	the violation at the rate provided for interest on judgments by K.S.A.
633		-	16-204, and amendments thereto;
634		-	(5) an order charging the registrant with the actual cost of an
635		-	investigation or proceeding; or
636		-	(6) an order requiring the registrant to cease and desist from any
637		-	action that constitutes a ground for discipline, or to take other action
638		-	necessary or appropriate to comply with this act.
639		-	(d) Grounds for discipline. A person may be disciplined under
640		-	subsections (a) through (c) if the person:
641		-	(1) Has filed an application for registration in this state under this
642		-	act or the predecessor act within the previous 10 years, which, as of the
643		-	effective date of registration or as of any date after filing in the case of
644		-	an order denying effectiveness, was incomplete in any material respect
645		-	or contained a statement that, in light of the circumstances under which
646		-	it was made, was false or misleading with respect to a material fact;
647		-	(2) willfully violated or willfully failed to comply with this act or
648		-	the predecessor act or a rule adopted or order issued under this act or
649		-	the predecessor act within the previous 10 years;
650		-	(3) has been convicted of a felony or within the previous 10 years
651		-	has been convicted of a misdemeanor involving a security, a
652		-	commodity future or option contract, or an aspect of a business
653		-	involving securities, commodities, investments, franchises, insurance,
654		-	banking, or finance; SENATE BILL No. 27—page 12
655		-	(4) is enjoined or restrained by a court of competent jurisdiction in
656		-	an action instituted by the administrator under this act or the
657		-	predecessor act, a state, the securities and exchange commission, or the
658		-	United States from engaging in or continuing an act, practice, or course
659		-	of business involving an aspect of a business involving securities,
660		-	commodities, investments, franchises, insurance, banking, or finance;
661		-	(5) is the subject of an order, issued after notice and opportunity
662		-	for hearing by:
663		-	(A) The securities, depository institution, insurance, or other
664		-	financial services regulator of a state or by the securities and exchange
665		-	commission or other federal agency denying, revoking, barring, or
666		-	suspending registration as a broker-dealer, agent, investment adviser,
667		-	federal covered investment adviser, or investment adviser
668		-	representative;
669		-	(B) the securities regulator of a state or by the securities and
670		-	exchange commission against a broker-dealer, agent, investment
671		-	adviser, investment adviser representative, or federal covered
672		-	investment adviser;
673		-	(C) the securities and exchange commission or by a self-
674		-	regulatory organization suspending or expelling the registrant from
675		-	membership in the self-regulatory organization;
676		-	(D) a court adjudicating a United States postal service fraud order;
677		-	(E) the insurance regulator of a state denying, suspending, or
678		-	revoking the registration of an insurance agent; or
679		-	(F) a depository institution regulator suspending or barring a
680		-	person from the depository institution business;
681		-	(6) is the subject of an adjudication or determination, after notice
682		-	and opportunity for hearing, by the securities and exchange
683		-	commission, the commodity futures trading commission, the federal
684		-	trade commission, a federal depository institution regulator, or a
685		-	depository institution, insurance, or other financial services regulator of
686		-	a state that the person willfully violated the securities act of 1933, the
687		-	securities exchange act of 1934, the investment advisers act of 1940,
688		-	the investment company act of 1940, or the commodity exchange act,
689		-	the securities or commodities law of a state, or a federal or state law
690		-	under which a business involving investments, franchises, insurance,
691		-	banking, or finance is regulated;
692		-	(7) is insolvent, either because the person's liabilities exceed the
693		-	person's assets or because the person cannot meet the person's
694		-	obligations as they mature, but the administrator may not enter an order
695		-	against an applicant or registrant under this paragraph without a finding
696		-	of insolvency as to the applicant or registrant;
697		-	(8) refuses to allow or otherwise impedes the administrator from
698		-	conducting an audit or inspection under K.S.A. 17-12a411(d), and
699		-	amendments thereto, refuses access to a registrant's office to conduct an
700		-	audit or inspection under K.S.A. 17-12a411(d), and amendments
701		-	thereto, fails to keep or maintain sufficient records to permit an audit
702		-	disclosing the condition of the registrant's business, or fails willfully
703		-	and without cause to comply with a request for information by the
704		-	administrator or person designated by the administrator in conducting
705		-	investigations or examinations under this act;
706		-	(9) has failed to reasonably supervise an agent, investment adviser
707		-	representative, or other individual, if the agent, investment adviser
708		-	representative, or other individual was subject to the person's
709		-	supervision and committed a violation of this act or the predecessor act
710		-	or a rule adopted or order issued under this act or the predecessor act
711		-	within the previous 10 years;
712		-	(10) has not paid the proper filing fee within 30 days after having
713		-	been notified by the administrator of a deficiency, but the administrator SENATE BILL No. 27—page 13
714		-	shall vacate an order under this paragraph when the deficiency is
715		-	corrected;
716		-	(11) after notice and opportunity for a hearing, has been found
717		-	within the previous 10 years:
718		-	(A) By a court of competent jurisdiction to have willfully violated
719		-	the laws of a foreign jurisdiction under which the business of securities,
720		-	commodities, investment, franchises, insurance, banking, or finance is
721		-	regulated;
722		-	(B) to have been the subject of an order of a securities regulator of
723		-	a foreign jurisdiction denying, revoking, or suspending the right to
724		-	engage in the business of securities as a broker-dealer, agent,
725		-	investment adviser, investment adviser representative, or similar
726		-	person; or
727		-	(C) to have been suspended or expelled from membership by or
728		-	participation in a securities exchange or securities association operating
729		-	under the securities laws of a foreign jurisdiction;
730		-	(12) is the subject of a cease and desist order issued by the
731		-	securities and exchange commission or issued under the securities,
732		-	commodities, investment, franchise, banking, finance, or insurance
733		-	laws of a state;
734		-	(13) has engaged in dishonest or unethical practices in the
735		-	securities, commodities, investment, franchise, banking, finance, or
736		-	insurance business within the previous 10 years;
737		-	(14) is not qualified on the basis of factors such as training,
738		-	experience, and knowledge of the securities business. However, in the
739		-	case of an application by an agent for a broker-dealer that is a member
740		-	of a self-regulatory organization or by an individual for registration as
741		-	an investment adviser representative, a denial order may not be based
742		-	on this paragraph if the individual has successfully completed all
743		-	examinations required by subsection (e). The administrator may require
744		-	an applicant for registration under K.S.A. 17-12a402 or 17-12a404, and
745		-	amendments thereto, who has not been registered in a state within the
746		-	two years preceding the filing of an application in this state to
747		-	successfully complete an examination; or
748		-	(15) lacks sufficient character or reputation to warrant the public
749		-	trust; or
750		-	(16) was required to report information under the protect
751		-	vulnerable adults from financial exploitation act and knowingly failed
752		-	to make such a report or knowingly caused such report not to be made
753		-	within the previous 10 years.
754		-	(e) Examinations. A rule adopted or order issued under this act
755		-	may require that an examination, including an examination developed
756		-	or approved by an organization of securities regulators, be successfully
757		-	completed by a class of individuals or all individuals. An order issued
758		-	under this act may waive, in whole or in part, an examination as to an
759		-	individual and a rule adopted under this act may waive, in whole or in
760		-	part, an examination as to a class of individuals if the administrator
761		-	determines that the examination is not necessary or appropriate in the
762		-	public interest and for the protection of investors.
763		-	(f) Summary process. In accordance with the Kansas
764		-	administrative procedures procedure act, the administrator may use
765		-	summary or emergency proceedings to suspend or deny an application;
766		-	restrict, condition, limit, or suspend a registration; or censure, bar, or
767		-	impose a civil penalty or cease and desist order on a registrant before
768		-	final determination of an administrative proceeding. If a hearing is not
769		-	requested and none is ordered by the administrator within 30 days after
770		-	the date of service of the order, the order becomes final by operation of
771		-	law. If a hearing is requested or ordered, the administrator, after notice
772		-	of and opportunity for hearing to each person subject to the order, may SENATE BILL No. 27—page 14
773		-	modify or vacate the order or extend the order until final determination.
774		-	(g) Procedural requirements. (1) An order issued may not be
775		-	issued under this section, except under subsection (f), without:
776		-	(A) Appropriate notice to the applicant or registrant;
777		-	(B) opportunity for hearing; and
778		-	(C) findings of fact and conclusions of law in a record.
779		-	(2) Proceedings under this subsection shall be conducted in
780		-	accordance with the Kansas administrative procedures procedure act.
781		-	(h) Control person liability. A person that controls, directly or
782		-	indirectly, a person subject to discipline under subsection (d) may be
783		-	disciplined by order of the administrator under subsections (a) through
784		-	(c) to the same extent as the noncomplying person, unless the
785		-	controlling person did not know, and in the exercise of reasonable care
786		-	could not have known, of the existence of the conduct that is a ground
787		-	for discipline under this section.
788		-	(i) Limit on investigation or proceeding. The administrator may
789		-	not institute a proceeding under subsection (a), (b) or (c) based solely
790		-	on material facts actually known by the administrator unless an
791		-	investigation or the proceeding is instituted within one year after the
792		-	administrator actually acquires knowledge of the material facts.
793		-	Sec. 5. K.S.A. 2023 Supp. 38-2203, as amended by section 3 of
794		-	2024 House Bill No. 2536, is hereby amended to read as follows: 38-
795		-	2203. (a) Proceedings concerning any child who may be a child in need
796		-	of care shall be governed by this code, except in those instances when
797		-	the court knows or has reason to know that an Indian child is involved
798		-	in the proceeding, in which case, the Indian child welfare act of 1978,
799		-	25 U.S.C. § 1901 et seq., applies. The Indian child welfare act may
800		-	apply to: The filing to initiate a child in need of care proceeding,
801		-	K.S.A. 38-2234, and amendments thereto; ex parte custody orders,
802		-	K.S.A. 38-2242, and amendments thereto; temporary custody hearing,
803		-	K.S.A. 38-2243, and amendments thereto; adjudication, K.S.A. 38-
804		-	2247, and amendments thereto; burden of proof, K.S.A. 38-2250, and
805		-	amendments thereto; disposition, K.S.A. 38-2255, and amendments
806		-	thereto; permanency hearings, K.S.A. 38-2264, and amendments
807		-	thereto; termination of parental rights, K.S.A. 38-2267, 38-2268 and
808		-	38-2269, and amendments thereto; establishment of permanent
809		-	custodianship, K.S.A. 38-2268 and 38-2272, and amendments thereto;
810		-	establishment of SOUL family legal permanency, section 1 of 2024
811		-	House Bill No. 2536, and amendments thereto; the newborn infant
812		-	protection act, K.S.A. 38-2282, and amendments thereto; the
813		-	Representative Gail Finney memorial foster care bill of rights, K.S.A.
814		-	2023 Supp. 38-2201a, and amendments thereto; the placement of a
815		-	child in any foster, pre-adoptive and adoptive home and the placement
816		-	of a child in a guardianship arrangement under article 30 of chapter 59
817		-	of the Kansas Statutes Annotated, and amendments thereto.
818		-	(b) Subject to the uniform child custody jurisdiction and
819		-	enforcement act, K.S.A. 23-37,101 through 23-37,405, and
820		-	amendments thereto, the district court shall have original jurisdiction of
821		-	proceedings pursuant to this code.
822		-	(c) The court acquires jurisdiction over a child by the filing of a
823		-	petition pursuant to this code or upon issuance of an ex parte order
824		-	pursuant to K.S.A. 38-2242, and amendments thereto. When the court
825		-	acquires jurisdiction over a child in need of care, jurisdiction may
826		-	continue until the child has:
827		-	(1) Become 18 years of age, or until June 1 of the school year
828		-	during which the child became 18 years of age if the child is still
829		-	attending high school unless there is no court approved transition plan,
830		-	in which event jurisdiction may continue until a transition plan is
831		-	approved by the court or until the child reaches the age of 21 years of SENATE BILL No. 27—page 15
832		-	age;
833		-	(2) been adopted;
834		-	(3) SOUL family legal permanency as ordered by the court
835		-	pursuant to section 1 of 2024 House Bill No. 2536, and amendments
836		-	thereto, and such jurisdiction may continue until the child has reached
837		-	18 years of age, or until June 1 of the school year during which the
838		-	child reached 18 years of age if the child is still attending high school;
839		-	or
840		-	(4) been discharged by the court.
841		-	(d) Any child 18 years of age or over may request, in writing to
842		-	the court, that the jurisdiction of the court cease. The court shall give
843		-	notice of the request to all parties and interested parties and 30 days
844		-	after receipt of the request, jurisdiction will cease.
845		-	(e) When it is no longer appropriate for the court to exercise
846		-	jurisdiction over a child, the court, upon its own motion or the motion
847		-	of a party or interested party at a hearing or upon agreement of all
848		-	parties or interested parties, shall enter an order discharging the child.
849		-	Except upon request of the child pursuant to subsection (d), the court
850		-	shall not enter an order discharging a child until June 1 of the school
851		-	year during which the child becomes 18 years of age if the child is in an
852		-	out-of-home placement, is still attending high school and has not
853		-	completed the child's high school education.
854		-	(f) When a petition is filed under this code, a person who is
855		-	alleged to be under 18 years of age shall be presumed to be under that
856		-	age for the purposes of this code, unless the contrary is proved.
857		-	(g) A court's order issued in a proceeding pursuant to this code,
858		-	shall take precedence over such orders in a civil custody case, a
859		-	proceeding under article 31 of chapter 60 of the Kansas Statutes
860		-	Annotated, and amendments thereto, protection from abuse act, or a
861		-	comparable case in another jurisdiction, except as provided by K.S.A.
862		-	23-37,101 through 23-37,405, and amendments thereto, uniform child
863		-	custody jurisdiction and enforcement act.
864		-	(h) If a child is eligible to receive services from the Kansas
865		-	department for children and families, the department of corrections or
866		-	the judicial branch, such agencies shall collaborate to provide such
867		-	services. Nothing in this subsection shall preclude the child from
868		-	accessing services provided by the Kansas department for children and
869		-	families, the department of corrections, the judicial branch or any
870		-	other state agency if the child is otherwise eligible for the services.
871		-	Sec. 6. K.S.A. 2023 Supp. 38-2212, as amended by section 8 of
872		-	2023 Senate Bill No. 115, is hereby amended to read as follows: 38-
873		-	2212. (a) Principle of appropriate access. Information contained in
874		-	confidential agency records concerning a child alleged or adjudicated to
875		-	be in need of care may be disclosed as provided in this section and shall
876		-	be disclosed as provided in subsection (e). Disclosure shall in all cases
877		-	be guided by the principle of providing access only to persons or
878		-	entities with a need for information that is directly related to achieving
879		-	the purposes of this code.
880		-	(b) Free exchange of information. Pursuant to K.S.A. 38-2210,
881		-	and amendments thereto, the secretary and juvenile intake and
882		-	assessment agencies shall participate in the free exchange of
883		-	information concerning a child who is alleged or adjudicated to be in
884		-	need of care.
885		-	(c) Necessary access. The following persons or entities shall have
886		-	access to information from agency records. Access shall be limited to
887		-	information reasonably necessary to carry out their lawful
888		-	responsibilities, to maintain their personal safety and the personal
889		-	safety of individuals in their care, or to educate, diagnose, treat, care for
890		-	or protect a child alleged to be in need of care. Information authorized SENATE BILL No. 27—page 16
891		-	to be disclosed pursuant to this subsection shall not contain information
892		-	that identifies a reporter of a child who is alleged or adjudicated to be a
893		-	child in need of care.
894		-	(1) A child named in the report or records, a guardian ad litem
895		-	appointed for the child and the child's attorney.
896		-	(2) A parent or other person responsible for the welfare of a child,
897		-	or such person's legal representative.
898		-	(3) A court-appointed special advocate for a child, a citizen review
899		-	board or other advocate that reports to the court.
900		-	(4) A person licensed to practice the healing arts or mental health
901		-	profession in order to diagnose, care for, treat or supervise:
902		-	(A) A child whom such service provider reasonably suspects may
903		-	be in need of care;
904		-	(B) a member of the child's family; or
905		-	(C) a person who allegedly abused or neglected the child.
906		-	(5) A person or entity licensed or registered by the secretary of
907		-	health and environment or approved by the secretary for children and
908		-	families to care for, treat or supervise a child in need of care.
909		-	(6) A coroner or medical examiner when such person is
910		-	determining the cause of death of a child.
911		-	(7) The state child death review board established under K.S.A.
912		-	22a-243, and amendments thereto.
913		-	(8) An attorney for a private party who files a petition pursuant to
914		-	K.S.A. 38-2233(b), and amendments thereto.
915		-	(9) A foster parent, prospective foster parent, permanent
916		-	custodian, prospective permanent custodian, adoptive parent or
917		-	prospective adoptive parent. In order to assist such persons in making
918		-	an informed decision regarding acceptance of a particular child, to help
919		-	the family anticipate problems that may occur during the child's
920		-	placement, and to help the family meet the needs of the child in a
921		-	constructive manner, the secretary shall seek and shall provide the
922		-	following information to such persons as the information becomes
923		-	available to the secretary:
924		-	(A) Strengths, needs and general behavior of the child;
925		-	(B) circumstances that necessitated placement;
926		-	(C) information about the child's family and the child's
927		-	relationship to the family that may affect the placement;
928		-	(D) important life experiences and relationships that may affect
929		-	the child's feelings, behavior, attitudes or adjustment;
930		-	(E) medical history of the child, including third-party coverage
931		-	that may be available to the child; and
932		-	(F) education history, to include present grade placement, special
933		-	strengths and weaknesses.
934		-	(10) The state protection and advocacy agency as provided by
935		-	K.S.A. 65-5603(a)(10) or 74-5515(a)(2)(A) and (B), and amendments
936		-	thereto.
937		-	(11) Any educational institution to the extent necessary to enable
938		-	the educational institution to provide the safest possible environment
939		-	for its pupils and employees.
940		-	(12) Any educator to the extent necessary to enable the educator to
941		-	protect the personal safety of the educator and the educator's pupils.
942		-	(13) The office of the child advocate pursuant to the child
943		-	advocate act.
944		-	(14) Any other federal, state or local government executive branch
945		-	entity or any agent of such entity, having a need for such information in
946		-	order to carry out such entity's responsibilities under the law to protect
947		-	children from abuse and neglect.
948		-	(d) Specified access. The following persons or entities shall have
949		-	access to information contained in agency records as specified. SENATE BILL No. 27—page 17
950		-	Information authorized to be disclosed pursuant to this subsection shall
951		-	not contain information that identifies a reporter of a child who is
952		-	alleged or adjudicated to be a child in need of care.
953		-	(1) Information from confidential agency records of the Kansas
954		-	department for children and families, a law enforcement agency or any
955		-	juvenile intake and assessment worker of a child alleged or adjudicated
956		-	to be in need of care shall be available to members of the standing
957		-	house or senate committee on judiciary, house committee on
958		-	corrections and juvenile justice, house committee on child welfare and
959		-	foster care, house committee on appropriations, senate committee on
960		-	ways and means, legislative post audit committee and any joint
961		-	committee with authority to consider children's and families' issues,
962		-	when carrying out such member's or committee's official functions in
963		-	accordance with K.S.A. 75-4319, and amendments thereto, in a closed
964		-	or executive meeting. Except in limited conditions established by
	287	+	(2) has not committed any act that is a ground for denial, suspension
	288	+	or revocation of a license as set forth in K.S.A. 40-5510, and amendments
	289	+	thereto;
	290	+	(3) is trustworthy, reliable and of good reputation, evidence of which
	291	+	1
965	292		2
966		-	/3 of
967		-	the members of such committee, records and reports received by the
968		-	committee shall not be further disclosed. Unauthorized disclosure may
969		-	subject such member to discipline or censure from the house of
970		-	representatives or senate. The secretary for children and families shall
971		-	not summarize the outcome of department actions regarding a child
972		-	alleged to be a child in need of care in information available to
973		-	members of such committees.
974		-	(2) The secretary for children and families may summarize the
975		-	outcome of department actions regarding a child alleged to be a child in
976		-	need of care to a person having made such report.
977		-	(3) Information from confidential reports or records of a child
978		-	alleged or adjudicated to be a child in need of care may be disclosed to
979		-	the public when:
980		-	(A) The individuals involved or their representatives have given
981		-	express written consent; or
982		-	(B) the investigation of the abuse or neglect of the child or the
983		-	filing of a petition alleging a child to be in need of care has become
984		-	public knowledge, provided, however, except that the agency shall limit
985		-	disclosure to confirmation of procedural details relating to the handling
986		-	of the case by professionals.
987		-	(e) Law enforcement access. The secretary shall disclose
988		-	confidential agency records of a child alleged or adjudicated to be a
989		-	child in need of care, as described in K.S.A. 38-2209, and amendments
990		-	thereto, to the law enforcement agency investigating the alleged or
991		-	substantiated report or investigation of abuse or neglect, regardless of
992		-	the disposition of such report or investigation. Such records shall
993		-	include, but not be limited to, any information regarding such report or
994		-	investigation, records of past reports or investigations concerning such
995		-	child and such child's siblings and the perpetrator or alleged perpetrator
996		-	and the name and contact information of the reporter or persons
997		-	alleging abuse or neglect and case managers, investigators or
998		-	contracting entity employees assigned to or investigating such report.
999		-	Such records shall only be used for the purposes of investigating the
1000		-	alleged or substantiated report or investigation of abuse or neglect.
1001		-	(f) Court order. Notwithstanding the provisions of this section, a
1002		-	court of competent jurisdiction, after in camera inspection, may order
1003		-	disclosure of confidential agency records pursuant to a determination
1004		-	that the disclosure is in the best interests of the child who is the subject
1005		-	of the reports or that the records are necessary for the proceedings of
1006		-	the court. The court shall specify the terms of disclosure and impose
1007		-	appropriate limitations.
1008		-	(g) (1) Notwithstanding any other provision of law to the contrary,
1009		-	except as provided in paragraph (6), in the event that child abuse or
1010		-	neglect results in a child fatality or near fatality, reports or records of a SENATE BILL No. 27—page 18
1011		-	child alleged or adjudicated to be in need of care received by the
1012		-	secretary, a law enforcement agency or any juvenile intake and
1013		-	assessment worker shall become a public record and subject to
1014		-	disclosure pursuant to K.S.A. 45-215, and amendments thereto.
1015		-	(2) Within seven days of receipt of a request in accordance with
1016		-	the procedures adopted under K.S.A. 45-220, and amendments thereto,
1017		-	the secretary shall notify any affected individual that an open records
1018		-	request has been made concerning such records. The secretary or any
1019		-	affected individual may file a motion requesting the court to prevent
1020		-	disclosure of such record or report, or any select portion thereof. Notice
1021		-	of the filing of such motion shall be provided to all parties requesting
1022		-	the records or reports, and such party or parties shall have a right to
1023		-	hearing, upon request, prior to the entry of any order on such motion. If
1024		-	the affected individual does not file such motion within seven days of
1025		-	notification, and the secretary has not filed a motion, the secretary shall
1026		-	release the reports or records. If such motion is filed, the court shall
1027		-	consider the effect such disclosure may have upon an ongoing criminal
1028		-	investigation, a pending prosecution, or the privacy of the child, if
1029		-	living, or the child's siblings, parents or guardians, and the public's
1030		-	interest in the disclosure of such records or reports. The court shall
1031		-	make written findings on the record justifying the closing of the records
1032		-	and shall provide a copy of the journal entry to the affected parties and
1033		-	the individual requesting disclosure pursuant to the Kansas open
1034		-	records act, K.S.A. 45-215 et seq., and amendments thereto.
1035		-	(3) Notwithstanding the provisions of paragraph (2), in the event
1036		-	that child abuse or neglect results in a child fatality or criminal charges
1037		-	are filed with a court alleging that a person caused a child fatality, the
1038		-	secretary shall release the following information in response to an open
1039		-	records request made pursuant to the Kansas open records act, within
1040		-	seven business days of receipt of such request, as allowed by applicable
1041		-	law:
1042		-	(A) Age and sex of the child;
1043		-	(B) date of the fatality;
1044		-	(C) a summary of any previous reports of abuse or neglect
1045		-	received by the secretary involving the child, along with the findings of
1046		-	such reports; and
1047		-	(D) any department recommended services provided to the child.
1048		-	(4) Notwithstanding the provisions of paragraph (2), in the event
1049		-	that a child fatality occurs while such child was in the custody of the
1050		-	secretary for children and families, the secretary shall release the
1051		-	following information in response to an open records request made
1052		-	pursuant to the Kansas open records act, within seven business days of
1053		-	receipt of such request, as allowed by applicable law:
1054		-	(A) Age and sex of the child;
1055		-	(B) date of the fatality; and
1056		-	(C) a summary of the facts surrounding the death of the child.
1057		-	(5) For reports or records requested pursuant to this subsection,
1058		-	the time limitations specified in this subsection shall control to the
1059		-	extent of any inconsistency between this subsection and K.S.A. 45-218,
1060		-	and amendments thereto. As used in this section, "near fatality" means
1061		-	an act that, as certified by a person licensed to practice medicine and
1062		-	surgery, places the child in serious or critical condition.
1063		-	(6) Nothing in this subsection shall allow the disclosure of reports,
1064		-	records or documents concerning the child and such child's biological
1065		-	parents that were created prior to such child's adoption. Nothing herein
1066		-	is intended to require that an otherwise privileged communication lose
1067		-	its privileged character.
1068		-	Sec. 7. K.S.A. 2023 Supp. 38-2243 is hereby amended to read as
1069		-	follows: 38-2243. (a) Upon notice and hearing, the court may issue an SENATE BILL No. 27—page 19
1070		-	order directing who shall have temporary custody and may modify the
1071		-	order during the pendency of the proceedings as will best serve the
1072		-	child's welfare.
1073		-	(b) A hearing pursuant to this section shall be held within 72
1074		-	hours, excluding Saturdays, Sundays, legal holidays, and days on
1075		-	which the office of the clerk of the court is not accessible, following a
1076		-	child having been taken into protective custody.
1077		-	(c) Whenever it is determined that a temporary custody hearing is
1078		-	required, the court shall immediately set the time and place for the
1079		-	hearing. Notice of a temporary custody hearing shall be given to all
1080		-	parties and interested parties.
1081		-	(d) Notice of the temporary custody hearing shall be given at least
1082		-	24 hours prior to the hearing. The court may continue the hearing to
1083		-	afford the 24 hours prior notice or, with the consent of the party or
1084		-	interested party, proceed with the hearing at the designated time. If an
1085		-	order of temporary custody is entered and the parent or other person
1086		-	having custody of the child has not been notified of the hearing, did not
1087		-	appear or waive appearance and requests a rehearing, the court shall
1088		-	rehear the matter without unnecessary delay.
1089		-	(e) Oral notice may be used for giving notice of a temporary
1090		-	custody hearing where there is insufficient time to give written notice.
1091		-	Oral notice is completed upon filing a certificate of oral notice.
1092		-	(f) The court may enter an order of temporary custody after
1093		-	determining there is probable cause to believe that the:
1094		-	(1) Child is dangerous to self or to others;
1095		-	(2) child is not likely to be available within the jurisdiction of the
1096		-	court for future proceedings;
1097		-	(3) health or welfare of the child may be endangered without
1098		-	further care;
1099		-	(4) child has been subjected to human trafficking or aggravated
1100		-	human trafficking, as defined by K.S.A. 21-5426, and amendments
1101		-	thereto, or commercial sexual exploitation of a child, as defined by
1102		-	K.S.A. 21-6422, and amendments thereto;
1103		-	(5) child is experiencing a mental behavioral health crisis and is in
1104		-	need of treatment; or
1105		-	(6) child committed an act which, if committed by an adult, would
1106		-	constitute a violation of K.S.A. 21-6419, and amendments thereto.
1107		-	(g) (1) Whenever the court determines the necessity for an order
1108		-	of temporary custody the court may place the child in the temporary
1109		-	custody of:
1110		-	(A) A parent or other person having custody of the child and may
1111		-	enter a restraining order pursuant to subsection (h);
1112		-	(B) a person, other than the parent or other person having custody,
1113		-	who shall not be required to be licensed under article 5 of chapter 65 of
1114		-	the Kansas Statutes Annotated, and amendments thereto;
1115		-	(C) a youth residential facility;
1116		-	(D) a shelter facility;
1117		-	(E) a staff secure facility, notwithstanding any other provision of
1118		-	law, if the child has been subjected to human trafficking or aggravated
1119		-	human trafficking, as defined by K.S.A. 21-5426, and amendments
1120		-	thereto, or commercial sexual exploitation of a child, as defined by
1121		-	K.S.A. 21-6422, and amendments thereto, or the child committed an act
1122		-	which, if committed by an adult, would constitute a violation of K.S.A.
1123		-	21-6419, and amendments thereto;
1124		-	(F) after written authorization by a community mental health
1125		-	center, a juvenile crisis intervention center, as described in K.S.A. 65-
1126		-	536, and amendments thereto; or
1127		-	(G) the secretary, if the child is 15 years of age or younger, or 16
1128		-	or 17 years of age if the child has no identifiable parental or family SENATE BILL No. 27—page 20
1129		-	resources or shows signs of physical, mental, emotional or sexual
1130		-	abuse.
1131		-	(2) If the secretary presents the court with a plan to provide
1132		-	services to a child or family which the court finds will assure the safety
1133		-	of the child, the court may only place the child in the temporary
1134		-	custody of the secretary until the court finds the services are in place.
1135		-	The court shall have the authority to require any person or entity
1136		-	agreeing to participate in the plan to perform as set out in the plan.
1137		-	When the child is placed in the temporary custody of the secretary, the
1138		-	secretary shall have the discretionary authority to place the child with a
1139		-	parent or to make other suitable placement for the child. When the child
1140		-	is placed in the temporary custody of the secretary and the child has
1141		-	been subjected to human trafficking or aggravated human trafficking,
1142		-	as defined by K.S.A. 21-5426, and amendments thereto, or commercial
1143		-	sexual exploitation of a child, as defined by K.S.A 21-6422, and
1144		-	amendments thereto, or the child committed an act which, if committed
1145		-	by an adult, would constitute a violation of K.S.A. 21-6419, and
1146		-	amendments thereto, the secretary shall have the discretionary authority
1147		-	to place the child in a staff secure facility, notwithstanding any other
1148		-	provision of law. When the child is presently alleged, but not yet
1149		-	adjudicated to be a child in need of care solely pursuant to K.S.A. 38-
1150		-	2202(d)(9) or (d)(10), and amendments thereto, the child may be placed
1151		-	in a secure facility, but the total amount of time that the child may be
1152		-	held in such facility under this section and K.S.A. 38-2242, and
1153		-	amendments thereto, shall not exceed 24 hours, excluding Saturdays,
1154		-	Sundays, legal holidays, and days on which the office of the clerk of
1155		-	the court is not accessible. The order of temporary custody shall remain
1156		-	in effect until modified or rescinded by the court or an adjudication
1157		-	order is entered but not exceeding 60 days, unless good cause is shown
1158		-	and stated on the record.
1159		-	(h) If the court issues an order of temporary custody, the court
1160		-	may also enter an order restraining any alleged perpetrator of physical,
1161		-	sexual, mental or emotional abuse of the child from residing in the
1162		-	child's home; visiting, contacting, harassing or intimidating the child;
1163		-	or attempting to visit, contact, harass or intimidate the child, other
1164		-	family members or witnesses. Such restraining order shall be served by
1165		-	personal service pursuant to K.S.A. 38-2237(a), and amendments
1166		-	thereto, on any alleged perpetrator to whom the order is directed.
1167		-	(i) (1) The court shall not enter the initial order removing a child
1168		-	from the custody of a parent pursuant to this section unless the court
1169		-	first finds probable cause that:
1170		-	(A) (i) The child is likely to sustain harm if not immediately
1171		-	removed from the home;
1172		-	(ii) allowing the child to remain in home is contrary to the welfare
1173		-	of the child; or
1174		-	(iii) immediate placement of the child is in the best interest of the
1175		-	child; and
1176		-	(B) reasonable efforts have been made to maintain the family unit
1177		-	and prevent the unnecessary removal of the child from the child's home
1178		-	or that an emergency exists which threatens the safety to the child.
1179		-	(2) Such findings shall be included in any order entered by the
1180		-	court. If the child is placed in the custody of the secretary, upon making
1181		-	the order the court shall provide the secretary with a written copy.
1182		-	(j) If the court enters an order of temporary custody that provides
1183		-	for placement of the child with a person other than the parent, the court
1184		-	shall make a child support determination pursuant to K.S.A. 38-2277,
1185		-	and amendments thereto.
1186		-	(k) For the purposes of this section, "harassing or intimidating"
1187		-	and "harass or intimidate" includes, but is not limited to, utilizing any SENATE BILL No. 27—page 21
1188		-	electronic tracking system or acquiring tracking information to
1189		-	determine the targeted person's location, movement or travel patterns.
1190		-	Sec. 8. K.S.A. 44-706, as amended by section 12 of 2024 House
1191		-	Bill No. 2760, is hereby amended to read as follows: 44-706. The
1192		-	secretary shall examine whether an individual has separated from
1193		-	employment for each week claimed. The secretary shall apply the
1194		-	provisions of this section to the individual's most recent employment
1195		-	prior to the week claimed. An individual shall be disqualified for
1196		-	benefits:
1197		-	(a) If the individual left work voluntarily without good cause
1198		-	attributable to the work or the employer, subject to the other provisions
1199		-	of this subsection. For purposes of this subsection, "good cause" is
1200		-	cause of such gravity that would impel a reasonable, not supersensitive,
1201		-	individual exercising ordinary common sense to leave employment.
1202		-	Good cause requires a showing of good faith of the individual leaving
1203		-	work, including the presence of a genuine desire to work. Failure to
1204		-	return to work after expiration of approved personal or medical leave,
1205		-	or both, shall be considered a voluntary resignation. After a temporary
1206		-	job assignment, failure of an individual to affirmatively request an
1207		-	additional assignment on the next succeeding workday, if required by
1208		-	the employment agreement, after completion of a given work
1209		-	assignment, shall constitute leaving work voluntarily. The
1210		-	disqualification shall begin the day following the separation and shall
1211		-	continue until after the individual has become reemployed and has had
1212		-	earnings from insured work of at least three times the individual's
1213		-	weekly benefit amount. An individual shall not be disqualified under
1214		-	this subsection if:
1215		-	(1) The individual was forced to leave work because of illness or
1216		-	injury upon the advice of a licensed and practicing healthcare provider
1217		-	and, upon learning of the necessity for absence, immediately notified
1218		-	the employer thereof, or the employer consented to the absence, and
1219		-	after recovery from the illness or injury, when recovery was certified by
1220		-	a practicing health care provider, the individual returned to the
1221		-	employer and offered to perform services and the individual's regular
1222		-	work or comparable and suitable work was not available. As used in
1223		-	this paragraph "healthcare provider" means any person licensed by the
1224		-	proper licensing authority of any state to engage in the practice of
1225		-	medicine and surgery, osteopathy, chiropractic, dentistry, optometry,
1226		-	podiatry or psychology;
1227		-	(2) the individual left temporary work to return to the regular
1228		-	employer;
1229		-	(3) the individual left work to enter active service in the armed
1230		-	forces of the United States but was rejected or delayed from entry;
1231		-	(4) The spouse of an individual who is a member of the armed
1232		-	forces of the United States who left work because of the voluntary or
1233		-	involuntary transfer of the individual's spouse from one job to another
1234		-	job that is for the same employer or for a different employer, at a
1235		-	geographic location that makes it unreasonable for the individual to
1236		-	continue work at the individual's job. For the purposes of this provision
1237		-	"member of the armed forces" means a person performing active
1238		-	service in the army, navy, marine corps, air force, space force, coast
1239		-	guard or any component of the military reserves of the United States;
1240		-	(5) the individual left work because of hazardous working
1241		-	conditions; in determining whether or not working conditions are
1242		-	hazardous for an individual, the degree of risk involved to the
1243		-	individual's health, safety and morals, the individual's physical fitness
1244		-	and prior training and the working conditions of workers engaged in
1245		-	the same or similar work for the same and other employers in the
1246		-	locality shall be considered; as used in this paragraph, "hazardous SENATE BILL No. 27—page 22
1247		-	working conditions" means working conditions that could result in a
1248		-	danger to the physical or mental well-being of the individual; each
1249		-	determination as to whether hazardous working conditions exist shall
1250		-	include, but shall not be limited to, a consideration of: (A) The safety
1251		-	measures used or the lack thereof; and (B) the condition of equipment
1252		-	or lack of proper equipment; no work shall be considered hazardous if
1253		-	the working conditions surrounding the individual's work are the same
1254		-	or substantially the same as the working conditions generally prevailing
1255		-	among individuals performing the same or similar work for other
1256		-	employers engaged in the same or similar type of activity;
1257		-	(6) the individual left work to enter training approved under
1258		-	section 236(a)(1) of the federal trade act of 1974, provided the work
1259		-	left is not of a substantially equal or higher skill level than the
1260		-	individual's past adversely affected employment, as defined for
1261		-	purposes of the federal trade act of 1974, and wages for such work are
1262		-	not less than 80% of the individual's average weekly wage as
1263		-	determined for the purposes of the federal trade act of 1974;
1264		-	(7) the individual left work because of unwelcome harassment of
1265		-	the individual by the employer or another employee of which the
1266		-	employing unit had knowledge and that would impel the average
1267		-	worker to give up such worker's employment;
1268		-	(8) the individual left work to accept better work; each
1269		-	determination as to whether or not the work accepted is better work
1270		-	shall include, but shall not be limited to, consideration of: (A) The rate
1271		-	of pay, the hours of work and the probable permanency of the work left
1272		-	as compared to the work accepted; (B) the cost to the individual of
1273		-	getting to the work left in comparison to the cost of getting to the work
1274		-	accepted; and (C) the distance from the individual's place of residence
1275		-	to the work accepted in comparison to the distance from the
1276		-	individual's residence to the work left;
1277		-	(9) the individual left work as a result of being instructed or
1278		-	requested by the employer, a supervisor or a fellow employee to
1279		-	perform a service or commit an act in the scope of official job duties
1280		-	that is in violation of an ordinance or statute;
1281		-	(10) the individual left work because of a substantial violation of
1282		-	the work agreement by the employing unit and, before the individual
1283		-	left, the individual had exhausted all remedies provided in such
1284		-	agreement for the settlement of disputes before terminating. For the
1285		-	purposes of this paragraph, a demotion based on performance does not
1286		-	constitute a violation of the work agreement;
1287		-	(11) after making reasonable efforts to preserve the work, the
1288		-	individual left work due to a personal emergency of such nature and
1289		-	compelling urgency that it would be contrary to good conscience to
1290		-	impose a disqualification; or
1291		-	(12) (A) the individual left work due to circumstances resulting
1292		-	from domestic violence, including:
1293		-	(i) The individual's reasonable fear of future domestic violence at
1294		-	or en route to or from the individual's place of employment;
1295		-	(ii) the individual's need to relocate to another geographic area in
1296		-	order to avoid future domestic violence;
1297		-	(iii) the individual's need to address the physical, psychological
1298		-	and legal impacts of domestic violence;
1299		-	(iv) the individual's need to leave employment as a condition of
1300		-	receiving services or shelter from an agency that provides support
1301		-	services or shelter to victims of domestic violence; or
1302		-	(v) the individual's reasonable belief that termination of
1303		-	employment is necessary to avoid other situations that may cause
1304		-	domestic violence and to provide for the future safety of the individual
1305		-	or the individual's family. SENATE BILL No. 27—page 23
1306		-	(B) An individual may prove the existence of domestic violence
1307		-	by providing one of the following:
1308		-	(i) A restraining order or other documentation of equitable relief
1309		-	by a court of competent jurisdiction;
1310		-	(ii) a police record documenting the abuse;
1311		-	(iii) documentation that the abuser has been convicted of one or
1312		-	more of the offenses enumerated in articles 34 and 35 of chapter 21 of
1313		-	the Kansas Statutes Annotated, prior to their repeal, or articles 54 or 55
1314		-	of chapter 21 of the Kansas Statutes Annotated, or K.S.A. 21-6104, 21-
1315		-	6325, 21-6326 or 21-6418 through 21-6422, and amendments thereto,
1316		-	where the victim was a family or household member;
1317		-	(iv) medical documentation of the abuse;
1318		-	(v) a statement provided by a counselor, social worker, health care
1319		-	provider, clergy, shelter worker, legal advocate, domestic violence or
1320		-	sexual assault advocate or other professional who has assisted the
1321		-	individual in dealing with the effects of abuse on the individual or the
1322		-	individual's family; or
1323		-	(vi) a sworn statement from the individual attesting to the abuse.
1324		-	(C) No evidence of domestic violence experienced by an
1325		-	individual, including the individual's statement and corroborating
1326		-	evidence, shall be disclosed by the department of labor unless consent
1327		-	for disclosure is given by the individual.
1328		-	(b) If the individual has been discharged or suspended for
1329		-	misconduct connected with the individual's work. The disqualification
1330		-	shall begin the day following the separation and shall continue until
1331		-	after the individual becomes reemployed and in cases where the
1332		-	disqualification is due to discharge for misconduct has had earnings
1333		-	from insured work of at least three times the individual's determined
1334		-	weekly benefit amount, except that if an individual is discharged for
1335		-	gross misconduct connected with the individual's work, such individual
1336		-	shall be disqualified for benefits until such individual again becomes
1337		-	employed and has had earnings from insured work of at least eight
1338		-	times such individual's determined weekly benefit amount. In addition,
1339		-	all wage credits attributable to the employment from which the
1340		-	individual was discharged for gross misconduct connected with the
1341		-	individual's work shall be canceled. No such cancellation of wage
1342		-	credits shall affect prior payments made as a result of a prior
1343		-	separation.
1344		-	(1) As used in this subsection, "misconduct" means a violation of
1345		-	a duty or obligation reasonably owed the employer as a condition of
1346		-	employment including, but not limited to, a violation of a company
1347		-	rule, including a safety rule, if: (A) The individual knew or should have
1348		-	known about the rule; (B) the rule was lawful and reasonably related to
1349		-	the job; and (C) the rule was fairly and consistently enforced.
1350		-	(2) (A) Failure of the employee to notify the employer of an
1351		-	absence and an individual's leaving work prior to the end of such
1352		-	individual's assigned work period without permission shall be
1353		-	considered prima facie evidence of a violation of a duty or obligation
1354		-	reasonably owed the employer as a condition of employment.
1355		-	(B) For the purposes of this subsection, misconduct shall include,
1356		-	but not be limited to, violation of the employer's reasonable attendance
1357		-	expectations if the facts show:
1358		-	(i) The individual was absent or tardy without good cause;
1359		-	(ii) the individual had knowledge of the employer's attendance
1360		-	expectation; and
1361		-	(iii) the employer gave notice to the individual that future absence
1362		-	or tardiness may or will result in discharge.
1363		-	(C) For the purposes of this subsection, if an employee disputes
1364		-	being absent or tardy without good cause, the employee shall present SENATE BILL No. 27—page 24
1365		-	evidence that a majority of the employee's absences or tardiness were
1366		-	for good cause. If the employee alleges that the employee's repeated
1367		-	absences or tardiness were the result of health related issues, such
1368		-	evidence shall include documentation from a licensed and practicing
1369		-	healthcare provider as defined in subsection (a)(1).
1370		-	(3) (A) The term "gross misconduct" as used in this subsection
1371		-	shall be construed to mean conduct evincing extreme, willful or wanton
1372		-	misconduct as defined by this subsection. Gross misconduct shall
1373		-	include, but not be limited to: (i) Theft; (ii) fraud; (iii) intentional
1374		-	damage to property; (iv) intentional infliction of personal injury; or (v)
1375		-	any conduct that constitutes a felony.
1376		-	(B) For the purposes of this subsection, the following shall be
1377		-	conclusive evidence of gross misconduct:
1378		-	(i) The use of alcoholic liquor, cereal malt beverage or a
1379		-	nonprescribed controlled substance by an individual while working;
1380		-	(ii) the impairment caused by alcoholic liquor, cereal malt
1381		-	beverage or a nonprescribed controlled substance by an individual
1382		-	while working;
1383		-	(iii) a positive breath alcohol test or a positive chemical test, if:
1384		-	(a) The test was either:
1385		-	(1) Required by law and was administered pursuant to the drug
1386		-	free workplace act, 41 U.S.C. § 701 et seq.;
1387		-	(2) administered as part of an employee assistance program or
1388		-	other drug or alcohol treatment program in which the employee was
1389		-	participating voluntarily or as a condition of further employment;
1390		-	(3) requested pursuant to a written policy of the employer of
1391		-	which the employee had knowledge and was a required condition of
1392		-	employment;
1393		-	(4) required by law and the test constituted a required condition of
1394		-	employment for the individual's job; or
1395		-	(5) there was reasonable suspicion to believe that the individual
1396		-	used, had possession of, or was impaired by alcoholic liquor, cereal
1397		-	malt beverage or a nonprescribed controlled substance while working;
1398		-	(b) the test sample was collected either:
1399		-	(1) As prescribed by the drug free workplace act, 41 U.S.C. § 701
1400		-	et seq.;
1401		-	(2) as prescribed by an employee assistance program or other drug
1402		-	or alcohol treatment program in which the employee was participating
1403		-	voluntarily or as a condition of further employment;
1404		-	(3) as prescribed by the written policy of the employer of which
1405		-	the employee had knowledge and that constituted a required condition
1406		-	of employment;
1407		-	(4) as prescribed by a test that was required by law and which
1408		-	constituted a required condition of employment for the individual's job;
1409		-	or
1410		-	(5) at a time contemporaneous with the events establishing
1411		-	probable cause;
1412		-	(c) the collecting and labeling of a chemical test sample was
1413		-	performed by a licensed health care professional or any other individual
1414		-	certified pursuant to paragraph (b)(3)(A)(iii)(f) or authorized to collect
1415		-	or label test samples by federal or state law, or a federal or state rule or
1416		-	regulation having the force or effect of law, including law enforcement
1417		-	personnel;
1418		-	(d) the chemical test was performed by a laboratory approved by
1419		-	the United States department of health and human services or licensed
1420		-	by the department of health and environment, except that a blood
1421		-	sample may be tested for alcohol content by a laboratory commonly
1422		-	used for that purpose by state law enforcement agencies;
1423		-	(e) the chemical test was confirmed by gas chromatography, gas SENATE BILL No. 27—page 25
1424		-	chromatography-mass spectroscopy or other comparably reliable
1425		-	analytical method, except that no such confirmation is required for a
1426		-	blood alcohol sample or a breath alcohol test;
1427		-	(f) the breath alcohol test was administered by an individual
1428		-	trained to perform breath tests, the breath testing instrument used was
1429		-	certified and operated strictly according to a description provided by
1430		-	the manufacturers and the reliability of the instrument performance was
1431		-	assured by testing with alcohol standards; and
1432		-	(g) the foundation evidence establishes, beyond a reasonable
1433		-	doubt, that the test results were from the sample taken from the
1434		-	individual;
1435		-	(iv) an individual's refusal to submit to a chemical test or breath
1436		-	alcohol test, if:
1437		-	(a) The test meets the standards of the drug free workplace act, 41
1438		-	U.S.C. § 701 et seq.;
1439		-	(b) the test was administered as part of an employee assistance
1440		-	program or other drug or alcohol treatment program in which the
1441		-	employee was participating voluntarily or as a condition of further
1442		-	employment;
1443		-	(c) the test was otherwise required by law and the test constituted
1444		-	a required condition of employment for the individual's job;
1445		-	(d) the test was requested pursuant to a written policy of the
1446		-	employer of which the employee had knowledge and was a required
1447		-	condition of employment; or
1448		-	(e) there was reasonable suspicion to believe that the individual
1449		-	used, possessed or was impaired by alcoholic liquor, cereal malt
1450		-	beverage or a nonprescribed controlled substance while working; and
1451		-	(v) an individual's dilution or other tampering of a chemical test.
1452		-	(C) For purposes of this subsection:
1453		-	(i) "Alcohol concentration" means the number of grams of alcohol
1454		-	per 210 liters of breath;
1455		-	(ii) "alcoholic liquor" means the same as defined in K.S.A. 41-
1456		-	102, and amendments thereto;
1457		-	(iii) "cereal malt beverage" means the same as defined in K.S.A.
1458		-	41-2701, and amendments thereto;
1459		-	(iv) "chemical test" includes, but is not limited to, tests of urine,
1460		-	blood or saliva;
1461		-	(v) "controlled substance" means the same as defined in K.S.A.
1462		-	21-5701, and amendments thereto;
1463		-	(vi) "required by law" means required by a federal or state law, a
1464		-	federal or state rule or regulation having the force and effect of law, a
1465		-	county resolution or municipal ordinance, or a policy relating to public
1466		-	safety adopted in an open meeting by the governing body of any special
1467		-	district or other local governmental entity;
1468		-	(vii) "positive breath test" means a test result showing an alcohol
1469		-	concentration of 0.04 or greater, or the levels listed in 49 C.F.R. part 40,
1470		-	if applicable, unless the test was administered as part of an employee
1471		-	assistance program or other drug or alcohol treatment program in which
1472		-	the employee was participating voluntarily or as a condition of further
1473		-	employment, in which case "positive chemical test" means a test result
1474		-	showing an alcohol concentration at or above the levels provided for in
1475		-	the assistance or treatment program; and
1476		-	(viii) "positive chemical test" means a chemical result showing a
1477		-	concentration at or above the levels listed in K.S.A. 44-501, and
1478		-	amendments thereto, or 49 C.F.R. part 40, as applicable, for the drugs
1479		-	or abuse listed therein, unless the test was administered as part of an
1480		-	employee assistance program or other drug or alcohol treatment
1481		-	program in which the employee was participating voluntarily or as a
1482		-	condition of further employment, in which case "positive chemical test" SENATE BILL No. 27—page 26
1483		-	means a chemical result showing a concentration at or above the levels
1484		-	provided for in the assistance or treatment program.
1485		-	(4) An individual shall not be disqualified under this subsection if
1486		-	the individual is discharged under the following circumstances:
1487		-	(A) The employer discharged the individual after learning the
1488		-	individual was seeking other work or when the individual gave notice
1489		-	of future intent to quit, except that the individual shall be disqualified
1490		-	after the time that such individual intended to quit and any individual
1491		-	who commits misconduct after such individual gives notice to such
1492		-	individual's intent to quit shall be disqualified;
1493		-	(B) the individual was making a good faith effort to do the
1494		-	assigned work but was discharged due to:
1495		-	(i) Inefficiency;
1496		-	(ii) unsatisfactory performance due to inability, incapacity or lack
1497		-	of training or experience;
1498		-	(iii) isolated instances of ordinary negligence or inadvertence;
1499		-	(iv) good faith errors in judgment or discretion; or
1500		-	(v) unsatisfactory work or conduct due to circumstances beyond
1501		-	the individual's control; or
1502		-	(C) the individual's refusal to perform work in excess of the
1503		-	contract of hire.
1504		-	(c) If the individual has failed, without good cause, to either apply
1505		-	for suitable work when so directed by the employment office of the
1506		-	secretary of labor, or to accept suitable work when offered to the
1507		-	individual by the employment office, the secretary of labor, or an
1508		-	employer, such disqualification shall begin with the week in which
1509		-	such failure occurred and shall continue until the individual becomes
1510		-	reemployed and has had earnings from insured work of at least three
1511		-	times such individual's determined weekly benefit amount. In
1512		-	determining whether or not any work is suitable for an individual, the
1513		-	secretary of labor, or a person or persons designated by the secretary,
1514		-	shall consider the degree of risk involved to health, safety and morals,
1515		-	physical fitness and prior training, experience and prior earnings, length
1516		-	of unemployment and prospects for securing local work in the
1517		-	individual's customary occupation or work for which the individual is
1518		-	reasonably fit by training or experience, and the distance of the
1519		-	available work from the individual's residence. Notwithstanding any
1520		-	other provisions of this act, an otherwise eligible individual shall not be
1521		-	disqualified for refusing an offer of suitable employment, or failing to
1522		-	apply for suitable employment when notified by an employment office,
1523		-	or for leaving the individual's most recent work accepted during
1524		-	approved training, including training approved under section 236(a)(1)
1525		-	of the trade act of 1974, if the acceptance of or applying for suitable
1526		-	employment or continuing such work would require the individual to
1527		-	terminate approved training and no work shall be deemed suitable and
1528		-	benefits shall not be denied under this act to any otherwise eligible
1529		-	individual for refusing to accept new work under any of the following
1530		-	conditions:
1531		-	(1) If the position offered is vacant due directly to a strike, lockout
1532		-	or other labor dispute;
1533		-	(2) if the remuneration, hours or other conditions of the work
1534		-	offered are substantially less favorable to the individual than those
1535		-	prevailing for similar work in the locality;
1536		-	(3) if as a condition of being employed, the individual would be
1537		-	required to join or to resign from or refrain from joining any labor
1538		-	organization; and
1539		-	(4) if the individual left employment as a result of domestic
1540		-	violence, and the position offered does not reasonably accommodate
1541		-	the individual's physical, psychological, safety, or legal needs relating SENATE BILL No. 27—page 27
1542		-	to such domestic violence.
1543		-	(d) For any week with respect to which the secretary of labor, or a
1544		-	person or persons designated by the secretary, finds that the individual's
1545		-	unemployment is due to a stoppage of work that exists because of a
1546		-	labor dispute or there would have been a work stoppage had normal
1547		-	operations not been maintained with other personnel previously and
1548		-	currently employed by the same employer at the factory, establishment
1549		-	or other premises at which the individual is or was last employed,
1550		-	except that this subsection (d) shall not apply if it is shown to the
1551		-	satisfaction of the secretary of labor, or a person or persons designated
1552		-	by the secretary, that:
1553		-	(1) The individual is not participating in or financing or directly
1554		-	interested in the labor dispute that caused the stoppage of work; and
1555		-	(2) the individual does not belong to a grade or class of workers of
1556		-	which, immediately before the commencement of the stoppage, there
1557		-	were members employed at the premises where the stoppage occurs
1558		-	any of whom are participating in or financing or directly interested in
1559		-	the dispute. If in any case separate branches of work that are commonly
1560		-	conducted as separate businesses in separate premises are conducted in
1561		-	separate departments of the same premises, each such department shall,
1562		-	for the purpose of this subsection be deemed to be a separate factory,
1563		-	establishment or other premises. For the purposes of this subsection,
1564		-	failure or refusal to cross a picket line or refusal for any reason during
1565		-	the continuance of such labor dispute to accept the individual's
1566		-	available and customary work at the factory, establishment or other
1567		-	premises where the individual is or was last employed shall be
1568		-	considered as participation and interest in the labor dispute.
1569		-	(e) For any week or a part of the week in which the individual has
1570		-	received or is seeking unemployment benefits under the unemployment
1571		-	compensation law of any other state or of the United States, except that
1572		-	if the appropriate agency of such other state or the United States finally
1573		-	determines that the individual is not entitled to such unemployment
1574		-	benefits, this disqualification shall not apply.
1575		-	(f) For any week in which the individual is entitled to receive any
1576		-	unemployment allowance or compensation granted by the United States
1577		-	under an act of congress to former members of the armed forces in
1578		-	recognition of former service with the military, naval, air or space
1579		-	services of the United States.
1580		-	(g) If the individual, or another in such individual's behalf with the
1581		-	knowledge of the individual, has knowingly made a false statement or
1582		-	representation, or has knowingly failed to disclose a material fact to
1583		-	obtain or increase benefits under this act or any other unemployment
1584		-	compensation law administered by the secretary of labor, unless the
1585		-	individual has repaid the full amount of the overpayment as determined
1586		-	by the secretary or the secretary's designee, including, but not limited
1587		-	to, the total amount of money erroneously paid as benefits or
1588		-	unlawfully obtained, interest, penalties and any other costs or fees
1589		-	provided by law. If the individual has made such repayment, the
1590		-	individual shall be disqualified for a period of one year for the first
1591		-	occurrence or five years for any subsequent occurrence, beginning with
1592		-	the first day following the date the department of labor confirmed the
1593		-	individual has successfully repaid the full amount of the overpayment.
1594		-	In addition to the penalties set forth in K.S.A. 44-719, and amendments
1595		-	thereto, an individual who has knowingly made a false statement or
1596		-	representation or who has knowingly failed to disclose a material fact
1597		-	to obtain or increase benefits under this act or any other unemployment
1598		-	compensation law administered by the secretary of labor shall be liable
1599		-	for a penalty in the amount equal to 25% of the amount of benefits
1600		-	unlawfully received. Notwithstanding any other provision of law, such SENATE BILL No. 27—page 28
1601		-	penalty shall be deposited into the employment security trust fund. No
1602		-	person who is a victim of identify theft shall be subject to the
1603		-	provisions of this subsection. The secretary shall investigate all cases of
1604		-	an alleged false statement or representation or failure to disclose a
1605		-	material fact to ensure no victim of identity theft is disqualified,
1606		-	required to repay or subject to any penalty as provided by this
1607		-	subsection as a result of identity theft.
1608		-	(h) For any week in which the individual is receiving
1609		-	compensation for temporary total disability or permanent total
1610		-	disability under the workmen's compensation law of any state or under
1611		-	a similar law of the United States.
1612		-	(i) For any week of unemployment on the basis of service in an
1613		-	instructional, research or principal administrative capacity for an
1614		-	educational institution as defined in K.S.A. 44-703(v), and amendments
1615		-	thereto, if such week begins during the period between two successive
1616		-	academic years or terms or, when an agreement provides instead for a
1617		-	similar period between two regular but not successive terms during
1618		-	such period or during a period of paid sabbatical leave provided for in
1619		-	the individual's contract, if the individual performs such services in the
1620		-	first of such academic years or terms and there is a contract or a
1621		-	reasonable assurance that such individual will perform services in any
1622		-	such capacity for any educational institution in the second of such
1623		-	academic years or terms.
1624		-	(j) For any week of unemployment on the basis of service in any
1625		-	capacity other than service in an instructional, research, or
1626		-	administrative capacity in an educational institution, as defined in
1627		-	K.S.A. 44-703(v), and amendments thereto, if such week begins during
1628		-	the period between two successive academic years or terms if the
1629		-	individual performs such services in the first of such academic years or
1630		-	terms and there is a reasonable assurance that the individual will
1631		-	perform such services in the second of such academic years or terms,
1632		-	except that if benefits are denied to the individual under this subsection
1633		-	and the individual was not offered an opportunity to perform such
1634		-	services for the educational institution for the second of such academic
1635		-	years or terms, such individual shall be entitled to a retroactive
1636		-	payment of benefits for each week for which the individual filed a
1637		-	timely claim for benefits and such benefits were denied solely by
1638		-	reason of this subsection.
1639		-	(k) For any week of unemployment on the basis of service in any
1640		-	capacity for an educational institution as defined in K.S.A. 44-703(v),
1641		-	and amendments thereto, if such week begins during an established and
1642		-	customary vacation period or holiday recess, if the individual performs
1643		-	services in the period immediately before such vacation period or
1644		-	holiday recess and there is a reasonable assurance that such individual
1645		-	will perform such services in the period immediately following such
1646		-	vacation period or holiday recess.
1647		-	(l) For any week of unemployment on the basis of any services,
1648		-	consisting of participating in sports or athletic events or training or
1649		-	preparing to so participate, if such week begins during the period
1650		-	between two successive sport seasons or similar period if such
1651		-	individual performed services in the first of such seasons or similar
1652		-	periods and there is a reasonable assurance that such individual will
1653		-	perform such services in the later of such seasons or similar periods.
1654		-	(m) For any week on the basis of services performed by an alien
1655		-	unless such alien is an individual who was lawfully admitted for
1656		-	permanent residence at the time such services were performed, was
1657		-	lawfully present for purposes of performing such services, or was
1658		-	permanently residing in the United States under color of law at the time
1659		-	such services were performed, including an alien who was lawfully SENATE BILL No. 27—page 29
1660		-	present in the United States as a result of the application of the
1661		-	provisions of section 212(d)(5) of the federal immigration and
1662		-	nationality act. Any data or information required of individuals
1663		-	applying for benefits to determine whether benefits are not payable to
1664		-	them because of their alien status shall be uniformly required from all
1665		-	applicants for benefits. In the case of an individual whose application
1666		-	for benefits would otherwise be approved, no determination that
1667		-	benefits to such individual are not payable because of such individual's
1668		-	alien status shall be made except upon a preponderance of the evidence.
1669		-	(n) For any week in which an individual is receiving a
1670		-	governmental or other pension, retirement or retired pay, annuity or
1671		-	other similar periodic payment under a plan maintained by a base
1672		-	period employer and to which the entire contributions were provided by
1673		-	such employer, except that:
1674		-	(1) If the entire contributions to such plan were provided by the
1675		-	base period employer but such individual's weekly benefit amount
1676		-	exceeds such governmental or other pension, retirement or retired pay,
1677		-	annuity or other similar periodic payment attributable to such week, the
1678		-	weekly benefit amount payable to the individual shall be reduced, but
1679		-	not below zero, by an amount equal to the amount of such pension,
1680		-	retirement or retired pay, annuity or other similar periodic payment that
1681		-	is attributable to such week; or
1682		-	(2) if only a portion of contributions to such plan were provided
1683		-	by the base period employer, the weekly benefit amount payable to
1684		-	such individual for such week shall be reduced, but not below zero, by
1685		-	the prorated weekly amount of the pension, retirement or retired pay,
1686		-	annuity or other similar periodic payment after deduction of that
1687		-	portion of the pension, retirement or retired pay, annuity or other
1688		-	similar periodic payment that is directly attributable to the percentage
1689		-	of the contributions made to the plan by such individual; or
1690		-	(3) if the entire contributions to the plan were provided by such
1691		-	individual, or by the individual and an employer, or any person or
1692		-	organization, who is not a base period employer, no reduction in the
1693		-	weekly benefit amount payable to the individual for such week shall be
1694		-	made under this subsection; or
1695		-	(4) whatever portion of contributions to such plan were provided
1696		-	by the base period employer, if the services performed for the employer
1697		-	by such individual during the base period, or remuneration received for
1698		-	the services, did not affect the individual's eligibility for, or increased
1699		-	the amount of, such pension, retirement or retired pay, annuity or other
1700		-	similar periodic payment, no reduction in the weekly benefit amount
1701		-	payable to the individual for such week shall be made under this
1702		-	subsection. No reduction shall be made for payments made under the
1703		-	social security act or railroad retirement act of 1974.
1704		-	(o) For any week of unemployment on the basis of services
1705		-	performed in any capacity and under any of the circumstances
1706		-	described in subsection (i), (j) or (k) that an individual performed in an
1707		-	educational institution while in the employ of an educational service
1708		-	agency. For the purposes of this subsection, the term "educational
1709		-	service agency" means a governmental agency or entity that is
1710		-	established and operated exclusively for the purpose of providing such
1711		-	services to one or more educational institutions.
1712		-	(p) For any week of unemployment on the basis of service as a
1713		-	school bus or other motor vehicle driver employed by a private
1714		-	contractor to transport pupils, students and school personnel to or from
1715		-	school-related functions or activities for an educational institution, as
1716		-	defined in K.S.A. 44-703(v), and amendments thereto, if such week
1717		-	begins during the period between two successive academic years or
1718		-	during a similar period between two regular terms, whether or not SENATE BILL No. 27—page 30
1719		-	successive, if the individual has a contract or contracts, or a reasonable
1720		-	assurance thereof, to perform services in any such capacity with a
1721		-	private contractor for any educational institution for both such
1722		-	academic years or both such terms. An individual shall not be
1723		-	disqualified for benefits as provided in this subsection for any week of
1724		-	unemployment:
1725		-	(1) That the individual is a participating employee in a short-term
1726		-	compensation program established pursuant to K.S.A. 44-757, and
1727		-	amendments thereto; or
1728		-	(2) on the basis of service as a bus or other motor vehicle driver
1729		-	employed by a private contractor to transport persons to or from
1730		-	nonschool-related functions or activities.
1731		-	(q) For any week of unemployment on the basis of services
1732		-	performed by the individual in any capacity and under any of the
1733		-	circumstances described in subsection (i), (j), (k) or (o) that are
1734		-	provided to or on behalf of an educational institution, as defined in
1735		-	K.S.A. 44-703(v), and amendments thereto, while the individual is in
1736		-	the employ of an employer that is a governmental entity, Indian tribe or
1737		-	any employer described in section 501(c)(3) of the federal internal
1738		-	revenue code of 1986 that is exempt from income under section 501(a)
1739		-	of the code.
1740		-	(r) For any week in which an individual is registered at and
1741		-	attending an established school, training facility or other educational
1742		-	institution, or is on vacation during or between two successive
1743		-	academic years or terms. An individual shall not be disqualified for
1744		-	benefits as provided in this subsection if:
1745		-	(1) The individual was engaged in full-time employment
1746		-	concurrent with the individual's school attendance;
1747		-	(2) the individual is attending approved training as defined in
1748		-	K.S.A. 44-703(s), and amendments thereto; or
1749		-	(3) the individual is attending evening, weekend or limited day
1750		-	time classes that would not affect availability for work, and is
1751		-	otherwise eligible under K.S.A. 44-705(c), and amendments thereto.
1752		-	(s) For any week in which an individual is receiving or has
1753		-	received remuneration in the form of a back pay award or settlement.
1754		-	The remuneration shall be allocated to the week or weeks in the manner
1755		-	as specified in the award or agreement, or in the absence of such
1756		-	specificity in the award or agreement, such remuneration shall be
1757		-	allocated to the week or weeks for which such remuneration, in the
1758		-	judgment of the secretary, would have been paid.
1759		-	(1) For any such weeks that an individual receives remuneration in
1760		-	the form of a back pay award or settlement, an overpayment will be
1761		-	established in the amount of unemployment benefits paid and shall be
1762		-	collected from the claimant.
1763		-	(2) If an employer chooses to withhold from a back pay award or
1764		-	settlement, amounts paid to a claimant while they claimed
1765		-	unemployment benefits, such employer shall pay the department the
1766		-	amount withheld. With respect to such amount, the secretary shall have
1767		-	available all of the collection remedies authorized or provided in
1768		-	K.S.A. 44-717, and amendments thereto.
1769		-	(t) (1) Any applicant for or recipient of unemployment benefits
1770		-	who tests positive for unlawful use of a controlled substance or
1771		-	controlled substance analog shall be required to complete a substance
1772		-	abuse treatment program approved by the secretary of labor, secretary
1773		-	of commerce or secretary for children and families, and a job skills
1774		-	program approved by the secretary of labor, secretary of commerce or
1775		-	the secretary for children and families. Subject to applicable federal
1776		-	laws, any applicant for or recipient of unemployment benefits who fails
1777		-	to complete or refuses to participate in the substance abuse treatment SENATE BILL No. 27—page 31
1778		-	program or job skills program as required under this subsection shall be
1779		-	ineligible to receive unemployment benefits until completion of such
1780		-	substance abuse treatment and job skills programs. Upon completion of
1781		-	both substance abuse treatment and job skills programs, such applicant
1782		-	for or recipient of unemployment benefits may be subject to periodic
1783		-	drug screening, as determined by the secretary of labor. Upon a second
1784		-	positive test for unlawful use of a controlled substance or controlled
1785		-	substance analog, an applicant for or recipient of unemployment
1786		-	benefits shall be ordered to complete again a substance abuse treatment
1787		-	program and job skills program, and shall be terminated from
1788		-	unemployment benefits for a period of 12 months, or until such
1789		-	applicant for or recipient of unemployment benefits completes both
1790		-	substance abuse treatment and job skills programs, whichever is later.
1791		-	Upon a third positive test for unlawful use of a controlled substance or
1792		-	controlled substance analog, an applicant for or a recipient of
1793		-	unemployment benefits shall be terminated from receiving
1794		-	unemployment benefits, subject to applicable federal law.
1795		-	(2) Any individual who has been discharged or refused
1796		-	employment for failing a preemployment drug screen required by an
1797		-	employer may request that the drug screening specimen be sent to a
1798		-	different drug testing facility for an additional drug screening. Any such
1799		-	individual who requests an additional drug screening at a different drug
1800		-	testing facility shall be required to pay the cost of drug screening.
1801		-	(u) If the individual was found not to have a disqualifying
1802		-	adjudication or conviction under K.S.A. 39-970 or 65-5117, and
1803		-	amendments thereto, was hired and then was subsequently convicted of
1804		-	a disqualifying felony under K.S.A. 39-970 or 65-5117, and
1805		-	amendments thereto, and discharged pursuant to K.S.A. 39-970 or 65-
1806		-	5117, and amendments thereto. The disqualification shall begin the day
1807		-	following the separation and shall continue until after the individual
1808		-	becomes reemployed and has had earnings from insured work of at
1809		-	least three times the individual's determined weekly benefit amount.
1810		-	(v) Notwithstanding the provisions of any subsection, an
1811		-	individual shall not be disqualified for such week of part-time
1812		-	employment in a substitute capacity for an educational institution if
1813		-	such individual's most recent employment prior to the individual's
1814		-	benefit year begin date was for a non-educational institution and such
1815		-	individual demonstrates application for work in such individual's
1816		-	customary occupation or for work for which the individual is
1817		-	reasonably fit by training or experience.
1818		-	Sec. 9. K.S.A. 2023 Supp. 65-536 is hereby amended to read as
1819		-	follows: 65-536. (a) A juvenile crisis intervention center is a facility
1820		-	that provides short-term observation, assessment, treatment and case
1821		-	planning, and referral for any juvenile who is experiencing a behavioral
1822		-	health crisis and is likely to cause harm to self or others. Such centers
1823		-	shall:
1824		-	(1) Address or ensure access to the broad range of services to meet
1825		-	the needs of a juvenile admitted to the center, including, but not limited
1826		-	to, medical, psychiatric, psychological, social, educational and
1827		-	substance abuse-related services;
1828		-	(2) not include construction features designed to physically restrict
1829		-	the movements and activities of juveniles, but shall have a design,
1830		-	structure, interior and exterior environment, and furnishings to promote
1831		-	a safe, comfortable and therapeutic environment for juveniles admitted
1832		-	to the center;
1833		-	(3) implement written policies and procedures that include the use
1834		-	of a combination of supervision, inspection and accountability to
1835		-	promote safe and orderly operations; and
1836		-	(4) implement written policies and procedures for staff monitoring SENATE BILL No. 27—page 32
1837		-	of all center entrances and exits.
1838		-	(b) A juvenile crisis intervention center shall provide treatment to
1839		-	juveniles admitted to such center, as appropriate while admitted.
1840		-	(c) A juvenile crisis intervention center may be on the same
1841		-	premises as that of another licensed facility. If the juvenile crisis
1842		-	intervention center is on the same premises as that of another licensed
1843		-	facility, the living unit of the juvenile crisis intervention center shall be
1844		-	maintained in a separate, self-contained unit. No juvenile crisis
1845		-	intervention center shall be in a city or county jail or a juvenile
1846		-	detention facility.
1847		-	(d) (1) A juvenile may be admitted to a juvenile crisis intervention
1848		-	center when:
1849		-	(A) The head of such center determines such juvenile is in need of
1850		-	treatment and likely to cause harm to self or others;
1851		-	(B) a qualified mental health professional from a community
1852		-	mental health center has given written authorization for such juvenile to
1853		-	be admitted to a juvenile crisis intervention center; and
1854		-	(C) no other more appropriate treatment services are available and
1855		-	accessible to the juvenile at the time of admission.
1856		-	(2) A juvenile may be admitted to a juvenile crisis intervention
1857		-	center for not more than 30 days. A parent with legal custody or legal
1858		-	guardian of a juvenile placed in a juvenile crisis intervention center
1859		-	may remove such juvenile from the center at any time. If the removal
1860		-	may cause the juvenile to become a child in need of care pursuant to
1861		-	K.S.A. 38-2202(d), and amendments thereto, the head of a juvenile
1862		-	crisis intervention center may report such concerns to the department
1863		-	for children and families or law enforcement or may request the county
1864		-	or district attorney to initiate proceedings pursuant to the revised
1865		-	Kansas code for care of children. If the head of a juvenile crisis
1866		-	intervention center determines the most appropriate action is to request
1867		-	the county or district attorney to initiate proceedings pursuant to the
1868		-	revised Kansas code for care of children, the head of such center shall
1869		-	make such request and shall keep such juvenile in the center for an
1870		-	additional 24-hour period to initiate the appropriate proceedings.
1871		-	(3) When a juvenile is released from a juvenile crisis intervention
1872		-	center, the managed care organization, if the juvenile is a medicaid
1873		-	recipient, and the community mental health center serving the area
1874		-	where the juvenile is being discharged shall be involved with discharge
1875		-	planning. Within seven days prior to the discharge of a juvenile, the
1876		-	head of the juvenile crisis intervention center shall give written notice
1877		-	of the date and time of the discharge to the patient, the managed care
1878		-	organization, if the juvenile is a medicaid recipient, and the community
1879		-	mental health center serving the area where the juvenile is being
1880		-	discharged, and the patient's parent, custodian or legal guardian.
1881		-	(e) (1) Upon admission to a juvenile crisis intervention center, and
1882		-	if the juvenile is a medicaid recipient, the managed care organization
1883		-	shall approve services as recommended by the head of the juvenile
1884		-	crisis intervention center. Within 14 days after admission, the head of
1885		-	the juvenile crisis intervention center shall develop a plan of treatment
1886		-	for the juvenile in collaboration with the managed care organization.
1887		-	(2) Nothing in this subsection shall prohibit the department of health
1888		-	and environment from administering or reimbursing state medicaid
1889		-	services to any juvenile admitted to a juvenile crisis intervention center
1890		-	pursuant to a waiver granted under section 1915(c) of the federal social
1891		-	security act, provided that such services are not administered through a
1892		-	managed care delivery system.
1893		-	(3) Nothing in this subsection shall prohibit the department of
1894		-	health and environment from reimbursing any state medicaid services
1895		-	that qualify for reimbursement and that are provided to a juvenile SENATE BILL No. 27—page 33
1896		-	admitted to a juvenile crisis intervention center.
1897		-	(4) Nothing in this subsection shall impair or otherwise affect the
1898		-	validity of any contract in existence on July 1, 2018, between a
1899		-	managed care organization and the department of health and
1900		-	environment to provide state medicaid services.
1901		-	(5) On or before January 1, 2019, the secretary of health and
1902		-	environment shall submit to the United States centers for medicare and
1903		-	medicaid services any approval request necessary to implement this
1904		-	subsection.
1905		-	(f) The secretary for children and families, in consultation with the
1906		-	attorney general, shall promulgate rules and regulations to implement
1907		-	the provisions of this section on or before January 1, 2019.
1908		-	(g) The secretary for children and families shall annually report
1909		-	information on outcomes of juveniles admitted into juvenile crisis
1910		-	intervention centers to the J. Russell (Russ) Jennings joint committee
1911		-	on corrections and juvenile justice oversight, the corrections and
1912		-	juvenile justice committee of the house of representatives and the
1913		-	judiciary committee of the senate. Such report shall include:
1914		-	(1) The number of admissions, releases and the lengths of stay for
1915		-	juveniles admitted to juvenile crisis intervention centers;
1916		-	(2) services provided to juveniles admitted;
1917		-	(3) needs of juveniles admitted determined by evidence-based
1918		-	assessment; and
1919		-	(4) success and recidivism rates, including information on the
1920		-	reduction of involvement of the child welfare system and juvenile
1921		-	justice system with the juvenile.
1922		-	(h) The secretary of corrections may enter into memorandums of
1923		-	agreement with other cabinet agencies to provide funding, not to
1924		-	exceed $2,000,000 annually, from the evidence-based programs
1925		-	account of the state general fund or other available appropriations for
1926		-	juvenile crisis intervention services.
1927		-	(i) For the purposes of this section:
1928		-	(1) "Behavioral health crisis" means behavioral and conduct issues
1929		-	that impact the safety or health of a juvenile, members of the juvenile's
1930		-	household or family or members of the community, including, but not
1931		-	limited to, non-life threatening mental health and substance abuse
1932		-	concerns;
1933		-	(2) "head of a juvenile crisis intervention center" means the
1934		-	administrative director of a juvenile crisis intervention center or such
1935		-	person's designee;
1936		-	(3) "juvenile" means a person who is less than 18 years of age;
1937		-	(4) "likely to cause harm to self or others" means that a juvenile,
1938		-	by reason of the juvenile's behavioral health condition, mental disorder
1939		-	or mental condition is likely, in the reasonably foreseeable future, to
1940		-	cause substantial physical injury or physical abuse to self or others or
1941		-	substantial damage to another's property, as evidenced by behavior
1942		-	threatening, attempting or causing such injury, abuse or damage;
1943		-	(5) "treatment" means any service intended to promote the mental
1944		-	health of the patient and rendered by a qualified professional, licensed
1945		-	or certified by the state to provide such service as an independent
1946		-	practitioner or under the supervision of such practitioner; and
1947		-	(6) "qualified mental health professional" means a physician or
1948		-	psychologist who is employed by a participating mental health center
1949		-	or who is providing services as a physician or psychologist under a
1950		-	contract with a participating mental health center, a licensed masters
1951		-	level psychologist, a licensed clinical psychotherapist, a licensed
1952		-	marriage and family therapist, a licensed clinical marriage and family
1953		-	therapist, a licensed professional counselor, a licensed clinical
1954		-	professional counselor, a licensed specialist social worker or a licensed SENATE BILL No. 27—page 34
1955		-	master social worker or a registered nurse who has a specialty in
1956		-	psychiatric nursing, who is employed by a participating mental health
1957		-	center and who is acting under the direction of a physician or
1958		-	psychologist who is employed by, or under contract with, a
1959		-	participating mental health center.
1960		-	(j) This section shall be a part of and supplemental to article 5 of
1961		-	chapter 65 of the Kansas Statutes Annotated, and amendments thereto.
1962		-	Sec. 10. K.S.A. 65-2401, as amended by section 1 of 2023 House
1963		-	Bill No. 2358, is hereby amended to read as follows: 65-2401. As used
1964		-	in this act:
1965		-	(a) "Vital statistics" includes the registration, preparation,
1966		-	transcription, collection, compilation, and preservation of data
1967		-	pertaining to birth, adoption, legitimation, death, stillbirth, marriage,
1968		-	divorce, annulment of marriage, induced termination of pregnancy, and
1969		-	data incidental thereto.
1970		-	(b) "Live birth" means the complete expulsion or extraction from
1971		-	its mother of a human child, irrespective of the duration of pregnancy,
1972		-	which, after such expulsion or extraction, breathes or shows any other
1973		-	evidence of life such as beating of the heart, pulsation of the umbilical
1974		-	cord, or definite movement of voluntary muscles, whether or not the
1975		-	umbilical cord has been cut or the placenta is attached.
1976		-	(c) "Gestational age" means the age of the human child as
1977		-	measured in weeks as determined by either the last date of the mother's
1978		-	menstrual period, a sonogram conducted prior to the 20
1979		-	th
1980		-	week of
1981		-	pregnancy or the confirmed known date of conception.
1982		-	(d) "Stillbirth" means any complete expulsion or extraction from
1983		-	its mother of a human child the gestational age of which is not less than
1984		-	20 completed weeks, resulting in other than a live birth, as defined in
1985		-	this section, and which is not an induced termination of pregnancy.
1986		-	(e) "Induced termination of pregnancy" means abortion, as defined
1987		-	in K.S.A. 65-6701, and amendments thereto.
1988		-	(f) "Dead body" means a lifeless human body or such parts of a
1989		-	human body or the bones thereof from the state of which it reasonably
1990		-	may be concluded that death recently occurred.
1991		-	(g) "Person in charge of interment" means any person who places
1992		-	or causes to be placed a stillborn child or dead body or the ashes, after
1993		-	cremation, in a grave, vault, urn or other receptacle, or otherwise
1994		-	disposes thereof.
1995		-	(h) "Secretary" means the secretary of health and environment.
1996		-	(i) "Cause of death certifier" means a person licensed to practice
1997		-	medicine and surgery by the state board of healing arts, a physician
1998		-	assistant licensed by the state board of healing arts, an advanced
1999		-	practice registered nurse licensed by the state board of nursing or a
2000		-	district coroner, deputy coroner or special deputy coroner.
2001		-	(j) "Employee" means a person who has applied for employment
2002		-	or is currently employed in the office of vital statistics.
2003		-	Sec. 11. K.S.A. 2023 Supp. 65-5808 is hereby amended to read as
2004		-	follows: 65-5808. (a) The board may collect the following fees, and any
2005		-	such fees shall be established by rules and regulations adopted by the
2006		-	board:
2007		-	(1) For application for licensure as a professional counselor, not
2008		-	more than $100;
2009		-	(2) for an original license as a professional counselor, not more
2010		-	than $175;
2011		-	(3) for a temporary license as a professional counselor, not more
2012		-	than $175;
2013		-	(4) for a six-month reinstatement temporary license as a
2014		-	professional counselor, not more than $50;
2015		-	(5) for renewal for licensure as a professional counselor, not more SENATE BILL No. 27—page 35
2016		-	than $150;
2017		-	(6) for application for licensure as a clinical professional
2018		-	counselor, not more than $175;
2019		-	(7) for licensure as a clinical professional counselor, not more than
2020		-	$175;
2021		-	(8) for renewal for licensure as a clinical professional counselor,
2022		-	not more than $175;
2023		-	(9) for a six-month reinstatement temporary license as a clinical
2024		-	professional counselor, not more than $50;
2025		-	(10) for a community-based professional counselor license, not
2026		-	more than $175;
2027		-	(11) for a home-state license with privilege to practice under the
2028		-	counseling compact, not more than $25 in addition to any other
2029		-	applicable fee;
2030		-	(12) for late renewal penalty, an amount equal to the fee for
2031		-	renewal of a license;
2032		-	(12)(13) for reinstatement of a license, not more than $175;
2033		-	(13)(14) for replacement of a license, not more than $20;
2034		-	(14)(15) for a wallet card license, not more than $5; and
2035		-	(15)(16) for application as a board-approved clinical supervisor,
2036		-	not more than $50.
2037		-	(b) Fees paid to the board are not refundable.
2038		-	Sec. 12. K.S.A. 2023 Supp. 65-6129, as amended by section 21 of
2039		-	2024 House Bill No. 2760, is hereby amended to read as follows: 65-
2040		-	6129. (a) (1) Application for an emergency medical service provider
2041		-	certificate shall be made to the board. The board shall not grant an
2042		-	emergency medical service provider certificate unless the applicant
2043		-	meets the following requirements:
2044		-	(A) (i) Has successfully completed coursework required by the
2045		-	rules and regulations adopted by the board;
2046		-	(ii) has successfully completed coursework in another jurisdiction
2047		-	that is substantially equivalent to that required by the rules and
2048		-	regulations adopted by the board; or
2049		-	(iii) has provided evidence that such applicant holds a current and
2050		-	active certification with the national registry of emergency medical
2051		-	technicians, completed emergency medical technician training as a
2052		-	member of the army, navy, marine corps, air force, space force, air or
2053		-	army national guard of any of the several states and territories, Puerto
2054		-	Rico and the District of Columbia, coast guard or any component of the
2055		-	military reserves of the United States that is substantially equivalent to
2056		-	that required by the rules and regulations adopted by the board, and
2057		-	such applicant separated from such period of active service as a
2058		-	member of the armed forces with an honorable discharge. Applicants
2059		-	currently performing active service as a member of the armed forces
2060		-	are presumed to be serving honorably;
2061		-	(B) (i) has passed the examination required by the rules and
2062		-	regulations adopted by the board; or
2063		-	(ii) has passed the certification or licensing examination in another
2064		-	jurisdiction that has been approved by the board; and
2065		-	(C) has paid an application fee required by the rules and
2066		-	regulations adopted by the board.
2067		-	(2) The board may grant an emergency medical service provider
2068		-	certificate to any applicant who meets the requirements under
2069		-	subsection (a)(1)(A)(iii) but was separated from such period of active
2070		-	service as a member of the armed forces with a general discharge under
2071		-	honorable conditions.
2072		-	(b) (1) The emergency medical services board may require an
2073		-	original applicant for certification as an emergency medical services
2074		-	provider to be fingerprinted and submit to a state and national criminal SENATE BILL No. 27—page 36
2075		-	history record check in accordance with section 2 of 2024 Senate Bill
2076		-	No. 491, and amendments thereto. The fingerprints shall be used to
2077		-	identify the applicant and to determine whether the applicant has a
2078		-	record of criminal history in this state or another jurisdiction. The
2079		-	emergency medical services board is authorized to submit the
2080		-	fingerprints to the Kansas bureau of investigation and the federal
2081		-	bureau of investigation for a state and national criminal history record
2082		-	check. The emergency medical services board may use the information
2083		-	obtained from fingerprinting and the applicant's criminal history for
2084		-	purposes of verifying the identification of the applicant and making the
2085		-	official determination of the qualifications and fitness of the applicant
2086		-	to be issued or to maintain a certificate.
2087		-	(2) Local and state law enforcement officers and agencies shall
2088		-	assist the emergency medical services board in taking the fingerprints
2089		-	of applicants for license, registration, permit or certificate. The Kansas
2090		-	bureau of investigation shall release all records of adult convictions,
2091		-	nonconvictions or adjudications in this state and any other state or
2092		-	country to the emergency medical services boardAs used in this
2093		-	section, "applicant" means a person who has submitted an application
2094		-	for an emergency medical services provider certificate.
2095		-	(3) The emergency medical services board may fix and collect a
2096		-	fee as may be required by the board in an amount equal to the cost of
2097		-	fingerprinting and the criminal history record check. The emergency
2098		-	medical services board shall remit all moneys received from the fees
2099		-	established by this section to the state treasurer in accordance with the
2100		-	provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt
2101		-	of each such remittance, the state treasurer shall deposit the entire
2102		-	amount in the state treasury to the credit of the emergency medical
2103		-	services criminal history and fingerprinting fund.
2104		-	(4) There is hereby created in the state treasury the emergency
2105		-	medical services criminal history and fingerprinting fund. All moneys
2106		-	credited to the fund shall be used to pay the Kansas bureau of
2107		-	investigation for the processing of fingerprints and criminal history
2108		-	record checks for the emergency medical services board. The fund shall
2109		-	be administered by the emergency medical services board. All
2110		-	expenditures from the fund shall be made in accordance with
2111		-	appropriation acts upon warrants of the director of accounts and reports
2112		-	issued pursuant to vouchers approved by the chairperson of the
2113		-	emergency medical services board or the chairperson's designee.
2114		-	(c) The board shall not grant an initial advanced emergency
2115		-	medical technician certificate or paramedic certificate as a result of
2116		-	successful course completion in the state of Kansas, except if the
2117		-	applicant for such an initial certificate is certified as an emergency
2118		-	medical technician.
2119		-	(d) An emergency medical service provider certificate shall expire
2120		-	on the date prescribed by the board. An emergency medical service
2121		-	provider certificate may be renewed for a period of two years upon
2122		-	payment of a fee as prescribed by rule and regulation of the board and
2123		-	upon presentation of satisfactory proof that the emergency medical
2124		-	service provider has successfully completed continuing education as
2125		-	prescribed by the board.
2126		-	(e) All fees received pursuant to the provisions of this section shall
2127		-	be remitted to the state treasurer in accordance with the provisions of
2128		-	K.S.A. 75-4215, and amendments thereto. Upon receipt of each such
2129		-	remittance, the state treasurer shall deposit the entire amount in the
2130		-	state treasury to the credit of the emergency medical services operating
2131		-	fund established by K.S.A. 65-6151, and amendments thereto.
2132		-	(f) If a person who was previously certified as an emergency
2133		-	medical service provider applies for an emergency medical service SENATE BILL No. 27—page 37
2134		-	provider's certificate after the certificate's expiration, the board may
2135		-	grant a certificate without the person completing an initial course of
2136		-	instruction or passing a certification examination if the person has
2137		-	completed education requirements and has paid a fee as specified in
2138		-	rules and regulations adopted by the board.
2139		-	(g) The board shall adopt, through rules and regulations, a formal
2140		-	list of graduated sanctions for violations of article 61 of chapter 65 of
2141		-	the Kansas Statutes Annotated, and amendments thereto, that shall
2142		-	specify the number and severity of violations for the imposition of each
2143		-	level of sanction.
2144		-	Sec. 13. K.S.A. 73-1210a, as amended by section 27 of 2024
2145		-	House Bill No. 2760, is hereby amended to read as follows: 73-1210a.
2146		-	(a) Except as otherwise provided by law, and subject to the Kansas civil
2147		-	service act, the director of the Kansas office of veterans services shall
2148		-	appoint:
2149		-	(1) Subordinate officers and employees, subject to the approval of
2150		-	the governor, as are necessary to enable the director to exercise or
2151		-	perform the functions, powers and duties pursuant to the provisions of
2152		-	article 12 of chapter 73 of the Kansas Statutes Annotated, and
2153		-	amendments thereto;
2154		-	(2) the superintendent of the Kansas soldiers' home;
2155		-	(3) the superintendent of the Kansas veterans' home; and
2156		-	(4) the deputy director of veterans services pursuant to K.S.A. 73-
2157		-	1234, and amendments thereto.
2158		-	(b) (1) Upon the commencement of the interview process, every
2159		-	candidate for a position in the Kansas office of veterans services that
2160		-	interviews claimants and provides information advice and counseling to
2161		-	veterans, surviving spouses, their dependents concerning
2162		-	compensation, pension, education, vocational rehabilitation, insurance,
2163		-	hospitalization, outpatient care, home loans, housing, tax exemptions,
2164		-	burial benefits and other benefits to which they may be entitled, or any
2165		-	other sensitive position, as determined by the director shall be given a
2166		-	written notice that a criminal history records check is required. The
2167		-	director of the Kansas office of veterans services shall require such
2168		-	candidates to be fingerprinted and submit to a state and national
2169		-	criminal history record check in accordance with section 2 of 2024
2170		-	Senate Bill No. 491, and amendments thereto. The fingerprints shall be
2171		-	used to identify the candidate and to determine whether the candidate
2172		-	has a record of criminal history in this state or another jurisdiction. The
2173		-	director of the Kansas office of veterans services shall submit the
2174		-	fingerprints to the Kansas bureau of investigation and the federal
2175		-	bureau of investigation for a state and national criminal history record
2176		-	check. Local and state law enforcement officers and agencies shall
2177		-	assist the director of the Kansas office of veterans services in taking
2178		-	and processing of fingerprints of candidates. If the criminal history
2179		-	record information reveals any conviction of crimes of dishonesty or
2180		-	violence, such conviction may be used to disqualify a candidate for any
2181		-	position within the director of the Kansas office of veterans services. If
2182		-	the criminal history record information is used to disqualify a
2183		-	candidate, the candidate shall be informed in writing of that decision
2184		-	(2) As used in this subsection, "candidate" means an applicant for
2185		-	a position in the Kansas office of veterans services that interviews
2186		-	claimants and provides information, advice and counseling to veterans,
2187		-	surviving spouses and their dependents concerning compensation,
2188		-	pension, education, vocational rehabilitation, insurance,
2189		-	hospitalization, outpatient care, home loans, housing, tax exemptions,
2190		-	burial benefits and other benefits to which they may be entitled.
2191		-	(c) Persons employed by the Kansas soldiers' home and Kansas
2192		-	veterans' home shall be excluded from the provisions of subsection (b). SENATE BILL No. 27—page 38
2193		-	No person who has been employed by the director of the Kansas office
2194		-	of veterans services for five consecutive years immediately prior to the
2195		-	effective date of this act shall be subject to the provisions of subsection
2196		-	(b) while employed by the director of the Kansas office of veterans
2197		-	services.
2198		-	(d) (1) Except as otherwise provided by law, and subject to the
2199		-	Kansas civil service act, the director of the Kansas office of veterans
2200		-	services shall appoint subordinate officers and employees, a
2201		-	superintendent of the Kansas soldiers' home and a superintendent of the
2202		-	Kansas veterans' home, as shall be necessary to enable the director of
2203		-	the Kansas office of veterans services to exercise or perform its
2204		-	functions, powers and duties pursuant to the provisions of article 19 of
2205		-	chapter 76 of the Kansas Statutes Annotated, and amendments thereto.
2206		-	(2) (A) All subordinate officers and employees shall be within the
2207		-	classified service under the Kansas civil service act, shall perform such
2208		-	duties and exercise such powers as the director of the Kansas office of
2209		-	veterans services may prescribe and such duties and powers as are
2210		-	designated by law, and shall act for and exercise the powers of the the
2211		-	director of the Kansas office of veterans services.
2212		-	(B) The superintendent of the Kansas soldiers' home shall be in
2213		-	the unclassified service under the Kansas civil service act and shall
2214		-	receive an annual salary fixed by the director of the Kansas office of
2215		-	veterans services, with the approval of the governor. The
2216		-	superintendent of the Kansas soldiers' home shall perform such duties
2217		-	and exercise such powers as the director may prescribe, and such duties
2218		-	and powers as are prescribed by law.
2219		-	(C) The superintendent of the Kansas veterans' home shall be in
2220		-	the unclassified service under the Kansas civil service act and shall
2221		-	receive an annual salary fixed by the director of the Kansas office of
2222		-	veterans services, with the approval of the governor. The
2223		-	superintendent of the Kansas veterans' home shall perform such duties
2224		-	and exercise such powers as the director may prescribe, and such duties
2225		-	and powers as are prescribed by law.
2226		-	(e) Any veterans service representative appointed by the director
2227		-	of the Kansas office of veterans services shall be an honorably
2228		-	discharged veteran or retired from the United States armed forces. No
2229		-	veterans service representative of the Kansas office of veterans services
2230		-	shall take a power of attorney in the name of the director of the Kansas
2231		-	office of veterans services. Nothing in this act shall be construed to
2232		-	prohibit any such veterans service representative from assisting any
2233		-	veteran with any claim in which a power of attorney is not required.
2234		-	(f) For the purpose of this subsection, "veterans service
2235		-	representative" means any officer or employee appointed pursuant to
2236		-	this section whose primary duties include:
2237		-	(1) Assisting veterans and their dependents in securing benefits
2238		-	from the federal government and the state of Kansas.
2239		-	(2) Providing information and assistance to veterans and
2240		-	dependents in obtaining special services and benefits based on
2241		-	knowledge of federal and state laws, policies and regulations pertaining
2242		-	to veterans benefits and services.
2243		-	(3) Providing assistance to veterans service organizations
2244		-	participating in the veterans claims assistance program.
2245		-	Sec. 14. K.S.A. 2023 Supp. 79-32,117, as amended by section 2 of
2246		-	2024 Senate Bill No. 360, is hereby amended to read as follows: 79-
2247		-	32,117. (a) The Kansas adjusted gross income of an individual means
2248		-	such individual's federal adjusted gross income for the taxable year,
2249		-	with the modifications specified in this section.
2250		-	(b) There shall be added to federal adjusted gross income:
2251		-	(i) Interest income less any related expenses directly incurred in SENATE BILL No. 27—page 39
2252		-	the purchase of state or political subdivision obligations, to the extent
2253		-	that the same is not included in federal adjusted gross income, on
2254		-	obligations of any state or political subdivision thereof, but to the
2255		-	extent that interest income on obligations of this state or a political
2256		-	subdivision thereof issued prior to January 1, 1988, is specifically
2257		-	exempt from income tax under the laws of this state authorizing the
2258		-	issuance of such obligations, it shall be excluded from computation of
2259		-	Kansas adjusted gross income whether or not included in federal
2260		-	adjusted gross income. Interest income on obligations of this state or a
2261		-	political subdivision thereof issued after December 31, 1987, shall be
2262		-	excluded from computation of Kansas adjusted gross income whether
2263		-	or not included in federal adjusted gross income.
2264		-	(ii) Taxes on or measured by income or fees or payments in lieu of
2265		-	income taxes imposed by this state or any other taxing jurisdiction to
2266		-	the extent deductible in determining federal adjusted gross income and
2267		-	not credited against federal income tax. This paragraph shall not apply
2268		-	to taxes imposed under the provisions of K.S.A. 79-1107 or 79-1108,
2269		-	and amendments thereto, for privilege tax year 1995, and all such years
2270		-	thereafter.
2271		-	(iii) The federal net operating loss deduction, except that the
2272		-	federal net operating loss deduction shall not be added to an
2273		-	individual's federal adjusted gross income for tax years beginning after
2274		-	December 31, 2016.
2275		-	(iv) Federal income tax refunds received by the taxpayer if the
2276		-	deduction of the taxes being refunded resulted in a tax benefit for
2277		-	Kansas income tax purposes during a prior taxable year. Such refunds
2278		-	shall be included in income in the year actually received regardless of
2279		-	the method of accounting used by the taxpayer. For purposes hereof, a
2280		-	tax benefit shall be deemed to have resulted if the amount of the tax
2281		-	had been deducted in determining income subject to a Kansas income
2282		-	tax for a prior year regardless of the rate of taxation applied in such
2283		-	prior year to the Kansas taxable income, but only that portion of the
2284		-	refund shall be included as bears the same proportion to the total refund
2285		-	received as the federal taxes deducted in the year to which such refund
2286		-	is attributable bears to the total federal income taxes paid for such year.
2287		-	For purposes of the foregoing sentence, federal taxes shall be
2288		-	considered to have been deducted only to the extent such deduction
2289		-	does not reduce Kansas taxable income below zero.
2290		-	(v) The amount of any depreciation deduction or business expense
2291		-	deduction claimed on the taxpayer's federal income tax return for any
2292		-	capital expenditure in making any building or facility accessible to the
2293		-	handicapped, for which expenditure the taxpayer claimed the credit
2294		-	allowed by K.S.A. 79-32,177, and amendments thereto.
2295		-	(vi) Any amount of designated employee contributions picked up
2296		-	by an employer pursuant to K.S.A. 12-5005, 20-2603, 74-4919 and 74-
2297		-	4965, and amendments thereto.
2298		-	(vii) The amount of any charitable contribution made to the extent
2299		-	the same is claimed as the basis for the credit allowed pursuant to
2300		-	K.S.A. 79-32,196, and amendments thereto.
2301		-	(viii) The amount of any costs incurred for improvements to a
2302		-	swine facility, claimed for deduction in determining federal adjusted
2303		-	gross income, to the extent the same is claimed as the basis for any
2304		-	credit allowed pursuant to K.S.A. 79-32,204, and amendments thereto.
2305		-	(ix) The amount of any ad valorem taxes and assessments paid and
2306		-	the amount of any costs incurred for habitat management or
2307		-	construction and maintenance of improvements on real property,
2308		-	claimed for deduction in determining federal adjusted gross income, to
2309		-	the extent the same is claimed as the basis for any credit allowed
2310		-	pursuant to K.S.A. 79-32,203, and amendments thereto. SENATE BILL No. 27—page 40
2311		-	(x) Amounts received as nonqualified withdrawals, as defined by
2312		-	K.S.A. 75-643, and amendments thereto, if, at the time of contribution
2313		-	to a family postsecondary education savings account, such amounts
2314		-	were subtracted from the federal adjusted gross income pursuant to
2315		-	subsection (c)(xv) or if such amounts are not already included in the
2316		-	federal adjusted gross income.
2317		-	(xi) The amount of any contribution made to the same extent the
2318		-	same is claimed as the basis for the credit allowed pursuant to K.S.A.
2319		-	74-50,154, and amendments thereto.
2320		-	(xii) For taxable years commencing after December 31, 2004,
2321		-	amounts received as withdrawals not in accordance with the provisions
2322		-	of K.S.A. 74-50,204, and amendments thereto, if, at the time of
2323		-	contribution to an individual development account, such amounts were
2324		-	subtracted from the federal adjusted gross income pursuant to
2325		-	subsection (c)(xiii), or if such amounts are not already included in the
2326		-	federal adjusted gross income.
2327		-	(xiii) The amount of any expenditures claimed for deduction in
2328		-	determining federal adjusted gross income, to the extent the same is
2329		-	claimed as the basis for any credit allowed pursuant to K.S.A. 79-
2330		-	32,217 through 79-32,220 or 79-32,222, and amendments thereto.
2331		-	(xiv) The amount of any amortization deduction claimed in
2332		-	determining federal adjusted gross income to the extent the same is
2333		-	claimed for deduction pursuant to K.S.A. 79-32,221, and amendments
2334		-	thereto.
2335		-	(xv) The amount of any expenditures claimed for deduction in
2336		-	determining federal adjusted gross income, to the extent the same is
2337		-	claimed as the basis for any credit allowed pursuant to K.S.A. 79-
2338		-	32,223 through 79-32,226, 79-32,228 through 79-32,231, 79-32,233
2339		-	through 79-32,236, 79-32,238 through 79-32,241, 79-32,245 through
2340		-	79-32,248 or 79-32,251 through 79-32,254, and amendments thereto.
2341		-	(xvi) The amount of any amortization deduction claimed in
2342		-	determining federal adjusted gross income to the extent the same is
2343		-	claimed for deduction pursuant to K.S.A. 79-32,227, 79-32,232, 79-
2344		-	32,237, 79-32,249, 79-32,250 or 79-32,255, and amendments thereto.
2345		-	(xvii) The amount of any amortization deduction claimed in
2346		-	determining federal adjusted gross income to the extent the same is
2347		-	claimed for deduction pursuant to K.S.A. 79-32,256, and amendments
2348		-	thereto.
2349		-	(xviii) For taxable years commencing after December 31, 2006,
2350		-	the amount of any ad valorem or property taxes and assessments paid to
2351		-	a state other than Kansas or local government located in a state other
2352		-	than Kansas by a taxpayer who resides in a state other than Kansas,
2353		-	when the law of such state does not allow a resident of Kansas who
2354		-	earns income in such other state to claim a deduction for ad valorem or
2355		-	property taxes or assessments paid to a political subdivision of the state
2356		-	of Kansas in determining taxable income for income tax purposes in
2357		-	such other state, to the extent that such taxes and assessments are
2358		-	claimed as an itemized deduction for federal income tax purposes.
2359		-	(xix) For taxable years beginning after December 31, 2012, and
2360		-	ending before January 1, 2017, the amount of any: (1) Loss from
2361		-	business as determined under the federal internal revenue code and
2362		-	reported from schedule C and on line 12 of the taxpayer's form 1040
2363		-	federal individual income tax return; (2) loss from rental real estate,
2364		-	royalties, partnerships, S corporations, except those with wholly owned
2365		-	subsidiaries subject to the Kansas privilege tax, estates, trusts, residual
2366		-	interest in real estate mortgage investment conduits and net farm rental
2367		-	as determined under the federal internal revenue code and reported
2368		-	from schedule E and on line 17 of the taxpayer's form 1040 federal
2369		-	individual income tax return; and (3) farm loss as determined under the SENATE BILL No. 27—page 41
2370		-	federal internal revenue code and reported from schedule F and on line
2371		-	18 of the taxpayer's form 1040 federal income tax return; all to the
2372		-	extent deducted or subtracted in determining the taxpayer's federal
2373		-	adjusted gross income. For purposes of this subsection, references to
2374		-	the federal form 1040 and federal schedule C, schedule E, and schedule
2375		-	F, shall be to such form and schedules as they existed for tax year 2011,
2376		-	and as revised thereafter by the internal revenue service.
2377		-	(xx) For taxable years beginning after December 31, 2012, and
2378		-	ending before January 1, 2017, the amount of any deduction for self-
2379		-	employment taxes under section 164(f) of the federal internal revenue
2380		-	code as in effect on January 1, 2012, and amendments thereto, in
2381		-	determining the federal adjusted gross income of an individual
2382		-	taxpayer, to the extent the deduction is attributable to income reported
2383		-	on schedule C, E or F and on line 12, 17 or 18 of the taxpayer's form
2384		-	1040 federal income tax return.
2385		-	(xxi) For taxable years beginning after December 31, 2012, and
2386		-	ending before January 1, 2017, the amount of any deduction for
2387		-	pension, profit sharing, and annuity plans of self-employed individuals
2388		-	under section 62(a)(6) of the federal internal revenue code as in effect
2389		-	on January 1, 2012, and amendments thereto, in determining the federal
2390		-	adjusted gross income of an individual taxpayer.
2391		-	(xxii) For taxable years beginning after December 31, 2012, and
2392		-	ending before January 1, 2017, the amount of any deduction for health
2393		-	insurance under section 162(l) of the federal internal revenue code as in
2394		-	effect on January 1, 2012, and amendments thereto, in determining the
2395		-	federal adjusted gross income of an individual taxpayer.
2396		-	(xxiii) For taxable years beginning after December 31, 2012, and
2397		-	ending before January 1, 2017, the amount of any deduction for
2398		-	domestic production activities under section 199 of the federal internal
2399		-	revenue code as in effect on January 1, 2012, and amendments thereto,
2400		-	in determining the federal adjusted gross income of an individual
2401		-	taxpayer.
2402		-	(xxiv) For taxable years commencing after December 31, 2013,
2403		-	that portion of the amount of any expenditure deduction claimed in
2404		-	determining federal adjusted gross income for expenses paid for
2405		-	medical care of the taxpayer or the taxpayer's spouse or dependents
2406		-	when such expenses were paid or incurred for an abortion, or for a
2407		-	health benefit plan, as defined in K.S.A. 65-6731, and amendments
2408		-	thereto, for the purchase of an optional rider for coverage of abortion in
2409		-	accordance with K.S.A. 40-2,190, and amendments thereto, to the
2410		-	extent that such taxes and assessments are claimed as an itemized
2411		-	deduction for federal income tax purposes.
2412		-	(xxv) For taxable years commencing after December 31, 2013,
2413		-	that portion of the amount of any expenditure deduction claimed in
2414		-	determining federal adjusted gross income for expenses paid by a
2415		-	taxpayer for health care when such expenses were paid or incurred for
2416		-	abortion coverage, a health benefit plan, as defined in K.S.A. 65-6731,
2417		-	and amendments thereto, when such expenses were paid or incurred for
2418		-	abortion coverage or amounts contributed to health savings accounts
2419		-	for such taxpayer's employees for the purchase of an optional rider for
2420		-	coverage of abortion in accordance with K.S.A. 40-2,190, and
2421		-	amendments thereto, to the extent that such taxes and assessments are
2422		-	claimed as a deduction for federal income tax purposes.
2423		-	(xxvi) For all taxable years beginning after December 31, 2016,
2424		-	the amount of any charitable contribution made to the extent the same
2425		-	is claimed as the basis for the credit allowed pursuant to K.S.A. 72-
2426		-	4357, and amendments thereto, and is also claimed as an itemized
2427		-	deduction for federal income tax purposes.
2428		-	(xxvii) For all taxable years commencing after December 31, SENATE BILL No. 27—page 42
2429		-	2020, the amount deducted by reason of a of any interest expense paid
2430		-	or accrued in a previous taxable year but allowed as a deduction
2431		-	pursuant to section 163 of the federal internal revenue code in the
2432		-	current taxable year by reason of the carryforward of disallowed
2433		-	business interest pursuant to section 163(j) of the federal internal
2434		-	revenue code of 1986, as in effect on January 1, 2018. For purposes of
2435		-	this paragraph, an interest expense is considered paid or accrued only
2436		-	in the first taxable year the deduction would have been allowable
2437		-	pursuant to section 163 of the federal internal revenue code if the
2438		-	limitation pursuant to section 163(j) of the federal internal revenue
2439		-	code did not exist.
2440		-	(xxviii) For all taxable years beginning after December 31, 2021,
2441		-	the amount of any contributions to, or earnings from, a first-time home
2442		-	buyer savings account if distributions from the account were not used
2443		-	to pay for expenses or transactions authorized pursuant to K.S.A. 2023
2444		-	Supp. 58-4904, and amendments thereto, or were not held for the
2445		-	minimum length of time required pursuant to K.S.A. 2023 Supp. 58-
2446		-	4904, and amendments thereto. Contributions to, or earnings from,
2447		-	such account shall also include any amount resulting from the account
2448		-	holder not designating a surviving payable on death beneficiary
2449		-	pursuant to K.S.A. 2023 Supp. 58-4904(e), and amendments thereto.
2450		-	(xxix) For all taxable years beginning after December 31, 2024,
2451		-	the amount of any contributions to, or earnings from, an adoption
2452		-	savings account if distributions from the account were not used to pay
2453		-	for expenses or transactions authorized pursuant to section 4 of 2024
2454		-	House Bill No. 2465, and amendments thereto, or were not held for the
2455		-	minimum length of time required pursuant to section 4 of 2024 House
2456		-	Bill No. 2465, and amendments thereto. Contributions to, or earnings
2457		-	from, such account shall also include any amount resulting from the
2458		-	account holder not designating a surviving payable on death
2459		-	beneficiary pursuant to section 4(e) of 2024 House Bill No. 2465, and
2460		-	amendments thereto.
2461		-	(c) There shall be subtracted from federal adjusted gross income:
2462		-	(i) Interest or dividend income on obligations or securities of any
2463		-	authority, commission or instrumentality of the United States and its
2464		-	possessions less any related expenses directly incurred in the purchase
2465		-	of such obligations or securities, to the extent included in federal
2466		-	adjusted gross income but exempt from state income taxes under the
2467		-	laws of the United States.
2468		-	(ii) Any amounts received which are included in federal adjusted
2469		-	gross income but which are specifically exempt from Kansas income
2470		-	taxation under the laws of the state of Kansas.
2471		-	(iii) The portion of any gain or loss from the sale or other
2472		-	disposition of property having a higher adjusted basis for Kansas
2473		-	income tax purposes than for federal income tax purposes on the date
2474		-	such property was sold or disposed of in a transaction in which gain or
2475		-	loss was recognized for purposes of federal income tax that does not
2476		-	exceed such difference in basis, but if a gain is considered a long-term
2477		-	capital gain for federal income tax purposes, the modification shall be
2478		-	limited to that portion of such gain which is included in federal
2479		-	adjusted gross income.
2480		-	(iv) The amount necessary to prevent the taxation under this act of
2481		-	any annuity or other amount of income or gain which was properly
2482		-	included in income or gain and was taxed under the laws of this state
2483		-	for a taxable year prior to the effective date of this act, as amended, to
2484		-	the taxpayer, or to a decedent by reason of whose death the taxpayer
2485		-	acquired the right to receive the income or gain, or to a trust or estate
2486		-	from which the taxpayer received the income or gain.
2487		-	(v) The amount of any refund or credit for overpayment of taxes SENATE BILL No. 27—page 43
2488		-	on or measured by income or fees or payments in lieu of income taxes
2489		-	imposed by this state, or any taxing jurisdiction, to the extent included
2490		-	in gross income for federal income tax purposes.
2491		-	(vi) Accumulation distributions received by a taxpayer as a
2492		-	beneficiary of a trust to the extent that the same are included in federal
2493		-	adjusted gross income.
2494		-	(vii) Amounts received as annuities under the federal civil service
2495		-	retirement system from the civil service retirement and disability fund
2496		-	and other amounts received as retirement benefits in whatever form
2497		-	which were earned for being employed by the federal government or
2498		-	for service in the armed forces of the United States.
2499		-	(viii) Amounts received by retired railroad employees as a
2500		-	supplemental annuity under the provisions of 45 U.S.C. §§ 228b(a) and
2501		-	228c(a)(1) et seq.
2502		-	(ix) Amounts received by retired employees of a city and by
2503		-	retired employees of any board of such city as retirement allowances
2504		-	pursuant to K.S.A. 13-14,106, and amendments thereto, or pursuant to
2505		-	any charter ordinance exempting a city from the provisions of K.S.A.
2506		-	13-14,106, and amendments thereto.
2507		-	(x) (1) For taxable years beginning after December 31, 1976 2021,
2508		-	the amount of the any federal tentative jobs tax credit disallowance
2509		-	under the provisions of 26 U.S.C. § 280C(a). For taxable years ending
2510		-	after December 31, 1978, the amount of the targeted jobs tax credit and
2511		-	work incentive credit disallowances under 26 U.S.C. § 280C.
2512		-	(2) For taxable years beginning after December 31, 2019, and
2513		-	ending before January 1, 2022, 50% of the amount of the federal
2514		-	employee retention credit disallowance under rules similar to the rules
2515		-	of 26 U.S.C. § 280C(a). The taxpayer shall be required to prove that
2516		-	such taxpayer previously filed Kansas income tax returns and paid
2517		-	Kansas income tax on the disallowed amount. Notwithstanding any
2518		-	other provision of law to the contrary, any claim for refund or amended
2519		-	return relating to this subparagraph shall be allowed to be filed on or
2520		-	before April 15, 2025, and no claim for refund or amended return shall
2521		-	be allowed or filed after April 15, 2025.
2522		-	(xi) For taxable years beginning after December 31, 1986,
2523		-	dividend income on stock issued by Kansas venture capital, inc.
2524		-	(xii) For taxable years beginning after December 31, 1989,
2525		-	amounts received by retired employees of a board of public utilities as
2526		-	pension and retirement benefits pursuant to K.S.A. 13-1246, 13-1246a
2527		-	and 13-1249, and amendments thereto.
2528		-	(xiii) For taxable years beginning after December 31, 2004,
2529		-	amounts contributed to and the amount of income earned on
2530		-	contributions deposited to an individual development account under
2531		-	K.S.A. 74-50,201 et seq., and amendments thereto.
2532		-	(xiv) For all taxable years commencing after December 31, 1996,
2533		-	that portion of any income of a bank organized under the laws of this
2534		-	state or any other state, a national banking association organized under
2535		-	the laws of the United States, an association organized under the
2536		-	savings and loan code of this state or any other state, or a federal
2537		-	savings association organized under the laws of the United States, for
2538		-	which an election as an S corporation under subchapter S of the federal
2539		-	internal revenue code is in effect, which accrues to the taxpayer who is
2540		-	a stockholder of such corporation and which is not distributed to the
2541		-	stockholders as dividends of the corporation. For taxable years
2542		-	beginning after December 31, 2012, and ending before January 1, 2017,
2543		-	the amount of modification under this subsection shall exclude the
2544		-	portion of income or loss reported on schedule E and included on line
2545		-	17 of the taxpayer's form 1040 federal individual income tax return.
2546		-	(xv) The cumulative amounts not exceeding $3,000, or $6,000 for SENATE BILL No. 27—page 44
2547		-	a married couple filing a joint return, for each designated beneficiary
2548		-	that are contributed to: (1) A family postsecondary education savings
2549		-	account established under the Kansas postsecondary education savings
2550		-	program or a qualified tuition program established and maintained by
2551		-	another state or agency or instrumentality thereof pursuant to section
2552		-	529 of the internal revenue code of 1986, as amended, for the purpose
2553		-	of paying the qualified higher education expenses of a designated
2554		-	beneficiary; or (2) an achieving a better life experience (ABLE)
2555		-	account established under the Kansas ABLE savings program or a
2556		-	qualified ABLE program established and maintained by another state or
2557		-	agency or instrumentality thereof pursuant to section 529A of the
2558		-	internal revenue code of 1986, as amended, for the purpose of saving
2559		-	private funds to support an individual with a disability. The terms and
2560		-	phrases used in this paragraph shall have the meaning respectively
2561		-	ascribed thereto by the provisions of K.S.A. 75-643 and 75-652, and
2562		-	amendments thereto, and the provisions of such sections are hereby
2563		-	incorporated by reference for all purposes thereof. For all taxable years
2564		-	beginning after December 31, 2022, contributions made to a qualified
2565		-	tuition program account or a qualified ABLE program account pursuant
2566		-	to this paragraph on and after January 1 but prior to the date required
2567		-	for filing a return pursuant to K.S.A. 79-3221, and amendments thereto,
2568		-	of the successive taxable year may be elected by the taxpayer to apply
2569		-	to the prior taxable year if such election is made at the time of filing the
2570		-	return. No contribution shall be used as a modification pursuant to this
2571		-	paragraph in more than one taxable year.
2572		-	(xvi) For all taxable years beginning after December 31, 2004,
2573		-	amounts received by taxpayers who are or were members of the armed
2574		-	forces of the United States, including service in the Kansas army and
2575		-	air national guard, as a recruitment, sign up or retention bonus received
2576		-	by such taxpayer as an incentive to join, enlist or remain in the armed
2577		-	services of the United States, including service in the Kansas army and
2578		-	air national guard, and amounts received for repayment of educational
2579		-	or student loans incurred by or obligated to such taxpayer and received
2580		-	by such taxpayer as a result of such taxpayer's service in the armed
2581		-	forces of the United States, including service in the Kansas army and
2582		-	air national guard.
2583		-	(xvii) For all taxable years beginning after December 31, 2004,
2584		-	amounts received by taxpayers who are eligible members of the Kansas
2585		-	army and air national guard as a reimbursement pursuant to K.S.A. 48-
2586		-	281, and amendments thereto, and amounts received for death benefits
2587		-	pursuant to K.S.A. 48-282, and amendments thereto, to the extent that
2588		-	such death benefits are included in federal adjusted gross income of the
2589		-	taxpayer.
2590		-	(xviii) For the taxable year beginning after December 31, 2006,
2591		-	amounts received as benefits under the federal social security act which
2592		-	are included in federal adjusted gross income of a taxpayer with federal
2593		-	adjusted gross income of $50,000 or less, whether such taxpayer's filing
2594		-	status is single, head of household, married filing separate or married
2595		-	filing jointly; and for all taxable years beginning after December 31,
2596		-	2007, amounts received as benefits under the federal social security act
2597		-	which are included in federal adjusted gross income of a taxpayer with
2598		-	federal adjusted gross income of $75,000 or less, whether such
2599		-	taxpayer's filing status is single, head of household, married filing
2600		-	separate or married filing jointly.
2601		-	(xix) Amounts received by retired employees of Washburn
2602		-	university as retirement and pension benefits under the university's
2603		-	retirement plan.
2604		-	(xx) For taxable years beginning after December 31, 2012, and
2605		-	ending before January 1, 2017, the amount of any: (1) Net profit from SENATE BILL No. 27—page 45
2606		-	business as determined under the federal internal revenue code and
2607		-	reported from schedule C and on line 12 of the taxpayer's form 1040
2608		-	federal individual income tax return; (2) net income, not including
2609		-	guaranteed payments as defined in section 707(c) of the federal internal
2610		-	revenue code and as reported to the taxpayer from federal schedule K-
2611		-	1, (form 1065-B), in box 9, code F or as reported to the taxpayer from
2612		-	federal schedule K-1, (form 1065) in box 4, from rental real estate,
2613		-	royalties, partnerships, S corporations, estates, trusts, residual interest
2614		-	in real estate mortgage investment conduits and net farm rental as
2615		-	determined under the federal internal revenue code and reported from
2616		-	schedule E and on line 17 of the taxpayer's form 1040 federal
2617		-	individual income tax return; and (3) net farm profit as determined
2618		-	under the federal internal revenue code and reported from schedule F
2619		-	and on line 18 of the taxpayer's form 1040 federal income tax return;
2620		-	all to the extent included in the taxpayer's federal adjusted gross
2621		-	income. For purposes of this subsection, references to the federal form
2622		-	1040 and federal schedule C, schedule E, and schedule F, shall be to
2623		-	such form and schedules as they existed for tax year 2011 and as
2624		-	revised thereafter by the internal revenue service.
2625		-	(xxi) For all taxable years beginning after December 31, 2013,
2626		-	amounts equal to the unreimbursed travel, lodging and medical
2627		-	expenditures directly incurred by a taxpayer while living, or a
2628		-	dependent of the taxpayer while living, for the donation of one or more
2629		-	human organs of the taxpayer, or a dependent of the taxpayer, to
2630		-	another person for human organ transplantation. The expenses may be
2631		-	claimed as a subtraction modification provided for in this section to the
2632		-	extent the expenses are not already subtracted from the taxpayer's
2633		-	federal adjusted gross income. In no circumstances shall the subtraction
2634		-	modification provided for in this section for any individual, or a
2635		-	dependent, exceed $5,000. As used in this section, "human organ"
2636		-	means all or part of a liver, pancreas, kidney, intestine, lung or bone
2637		-	marrow. The provisions of this paragraph shall take effect on the day
2638		-	the secretary of revenue certifies to the director of the budget that the
2639		-	cost for the department of revenue of modifications to the automated
2640		-	tax system for the purpose of implementing this paragraph will not
2641		-	exceed $20,000.
2642		-	(xxii) For taxable years beginning after December 31, 2012, and
2643		-	ending before January 1, 2017, the amount of net gain from the sale of:
2644		-	(1) Cattle and horses, regardless of age, held by the taxpayer for draft,
2645		-	breeding, dairy or sporting purposes, and held by such taxpayer for 24
2646		-	months or more from the date of acquisition; and (2) other livestock,
2647		-	regardless of age, held by the taxpayer for draft, breeding, dairy or
2648		-	sporting purposes, and held by such taxpayer for 12 months or more
2649		-	from the date of acquisition. The subtraction from federal adjusted
2650		-	gross income shall be limited to the amount of the additions recognized
2651		-	under the provisions of subsection (b)(xix) attributable to the business
2652		-	in which the livestock sold had been used. As used in this paragraph,
2653		-	the term "livestock" shall not include poultry.
2654		-	(xxiii) For all taxable years beginning after December 31, 2012,
2655		-	amounts received under either the Overland Park, Kansas police
2656		-	department retirement plan or the Overland Park, Kansas fire
2657		-	department retirement plan, both as established by the city of Overland
2658		-	Park, pursuant to the city's home rule authority.
2659		-	(xxiv) For taxable years beginning after December 31, 2013, and
2660		-	ending before January 1, 2017, the net gain from the sale from
2661		-	Christmas trees grown in Kansas and held by the taxpayer for six years
2662		-	or more.
2663		-	(xxv) For all taxable years commencing after December 31, 2020,
2664		-	100% of global intangible low-taxed income under section 951A of the SENATE BILL No. 27—page 46
2665		-	federal internal revenue code of 1986, before any deductions allowed
2666		-	under section 250(a)(1)(B) of such code.
2667		-	(xxvi) (1) For all taxable years commencing after December 31,
2668		-	2020, the amount of any interest expense paid or accrued in the current
2669		-	taxable year and disallowed as a deduction pursuant to section 163(j)
2670		-	of the federal internal revenue code of 1986, as in effect on January 1,
2671		-	2018.
2672		-	(2) For purposes of this paragraph, an interest expense is
2673		-	considered paid or accrued only in the first taxable year the deduction
2674		-	would have been allowable pursuant to section 163 of the federal
2675		-	internal revenue code if the limitation pursuant to section 163(j) of the
2676		-	federal internal revenue code did not exist.
2677		-	(3) For tax year 2021, an amount equal to the sum of any interest
2678		-	expenses paid or accrued in tax years 2018, 2019 and 2020 less the
2679		-	sum of amounts allowed as a deduction pursuant to section 163 of the
2680		-	federal internal revenue code in tax years 2018, 2019 and 2020.
2681		-	(xxvii) For taxable years commencing after December 31, 2020,
2682		-	the amount disallowed as a deduction pursuant to section 274 of the
2683		-	federal internal revenue code of 1986 for meal expenditures shall be
2684		-	allowed to the extent such expense was deductible for determining
2685		-	federal income tax and was allowed and in effect on December 31,
2686		-	2017.
2687		-	(xxviii) For all taxable years beginning after December 31, 2021:
2688		-	(1) The amount contributed to a first-time home buyer savings account
2689		-	pursuant to K.S.A. 2023 Supp. 58-4903, and amendments thereto, in an
2690		-	amount not to exceed $3,000 for an individual or $6,000 for a married
2691		-	couple filing a joint return; or (2) amounts received as income earned
2692		-	from assets in a first-time home buyer savings account. For all taxable
2693		-	years beginning after December 31, 2022, contributions made to a first-
2694		-	time home buyer savings account pursuant to subparagraph (1) on and
2695		-	after January 1 but prior to the date required for filing a return pursuant
2696		-	to K.S.A. 79-3221, and amendments thereto, of the successive taxable
2697		-	year may be elected by the taxpayer to apply to the prior taxable year if
2698		-	such election is made at the time of filing the return. No contribution
2699		-	shall be used as a modification pursuant to subparagraph (1) in more
2700		-	than one taxable year.
2701		-	(xxix) For taxable years beginning after December 31, 2017, for
2702		-	an individual taxpayer who carried back federal net operating losses
2703		-	arising in a taxable year beginning after December 31, 2017, and
2704		-	before January 1, 2021, pursuant to section 172(b)(1) of the federal
2705		-	internal revenue code as amended by the coronavirus aid, relief, and
2706		-	economic security act (CARES act), the amount of such federal net
2707		-	operating loss carryback for each applicable year. If the amount of
2708		-	such federal net operating loss carryback exceeds the taxpayer's
2709		-	Kansas adjusted gross income for such taxable year, the amount
2710		-	thereof that exceeds such Kansas adjusted gross income may be carried
2711		-	forward as a subtraction modification in the following taxable year or
2712		-	years until the total amount of such federal net operating loss
2713		-	carryback has been deducted, except that no such unused amount shall
2714		-	be carried forward for deduction as a subtraction modification after
2715		-	the 20
2716		-	th
2717		-	taxable year following the taxable year of the net operating
2718		-	loss. Notwithstanding any other provision of law to the contrary, an
2719		-	extension of time shall be allowed for a claim for refund or amended
2720		-	return for tax years 2018, 2019 or 2020 limited to the application of
2721		-	the provisions of this paragraph and such claim for refund or amended
2722		-	return must be filed on or before April 15, 2025.
2723		-	(xxx) For all taxable years beginning after December 31, 2024:
2724		-	(1) The amount contributed to an adoption savings account pursuant to
2725		-	section 3 of 2024 House Bill No. 2465, and amendments thereto, in an SENATE BILL No. 27—page 47
2726		-	amount not to exceed $6,000 for an individual or $12,000 for a
2727		-	married couple filing a joint return; or (2) amounts received as income
2728		-	earned from assets in an adoption savings account.
2729		-	(d) There shall be added to or subtracted from federal adjusted
2730		-	gross income the taxpayer's share, as beneficiary of an estate or trust, of
2731		-	the Kansas fiduciary adjustment determined under K.S.A. 79-32,135,
2732		-	and amendments thereto.
2733		-	(e) The amount of modifications required to be made under this
2734		-	section by a partner which relates to items of income, gain, loss,
2735		-	deduction or credit of a partnership shall be determined under K.S.A.
2736		-	79-32,131, and amendments thereto, to the extent that such items affect
2737		-	federal adjusted gross income of the partner.
2738		-	Sec. 15. K.S.A. 2023 Supp. 79-3606, as amended by section 5 of
2739		-	2023 House Bill No. 2098 is hereby amended to read as follows: 79-
2740		-	3606. The following shall be exempt from the tax imposed by this act:
2741		-	(a) All sales of motor-vehicle fuel or other articles upon which a
2742		-	sales or excise tax has been paid, not subject to refund, under the laws
2743		-	of this state except cigarettes and electronic cigarettes as defined by
2744		-	K.S.A. 79-3301, and amendments thereto, including consumable
2745		-	material for such electronic cigarettes, cereal malt beverages and malt
2746		-	products as defined by K.S.A. 79-3817, and amendments thereto,
2747		-	including wort, liquid malt, malt syrup and malt extract, that is not
2748		-	subject to taxation under the provisions of K.S.A. 79-41a02, and
2749		-	amendments thereto, motor vehicles taxed pursuant to K.S.A. 79-5117,
2750		-	and amendments thereto, tires taxed pursuant to K.S.A. 65-3424d, and
2751		-	amendments thereto, drycleaning and laundry services taxed pursuant
2752		-	to K.S.A. 65-34,150, and amendments thereto, and gross receipts from
2753		-	regulated sports contests taxed pursuant to the Kansas professional
2754		-	regulated sports act, and amendments thereto;
2755		-	(b) all sales of tangible personal property or service, including the
2756		-	renting and leasing of tangible personal property, purchased directly by
2757		-	the state of Kansas, a political subdivision thereof, other than a school
2758		-	or educational institution, or purchased by a public or private nonprofit
2759		-	hospital, public hospital authority, nonprofit blood, tissue or organ bank
2760		-	or nonprofit integrated community care organization and used
2761		-	exclusively for state, political subdivision, hospital, public hospital
2762		-	authority, nonprofit blood, tissue or organ bank or nonprofit integrated
2763		-	community care organization purposes, except when: (1) Such state,
2764		-	hospital or public hospital authority is engaged or proposes to engage
2765		-	in any business specifically taxable under the provisions of this act and
2766		-	such items of tangible personal property or service are used or
2767		-	proposed to be used in such business; or (2) such political subdivision
2768		-	is engaged or proposes to engage in the business of furnishing gas,
2769		-	electricity or heat to others and such items of personal property or
2770		-	service are used or proposed to be used in such business;
2771		-	(c) all sales of tangible personal property or services, including the
2772		-	renting and leasing of tangible personal property, purchased directly by
2773		-	a public or private elementary or secondary school or public or private
2774		-	nonprofit educational institution and used primarily by such school or
2775		-	institution for nonsectarian programs and activities provided or
2776		-	sponsored by such school or institution or in the erection, repair or
2777		-	enlargement of buildings to be used for such purposes. The exemption
2778		-	herein provided shall not apply to erection, construction, repair,
2779		-	enlargement or equipment of buildings used primarily for human
2780		-	habitation, except that such exemption shall apply to the erection,
2781		-	construction, repair, enlargement or equipment of buildings used for
2782		-	human habitation by the cerebral palsy research foundation of Kansas
2783		-	located in Wichita, Kansas, multi community diversified services,
2784		-	incorporated, located in McPherson, Kansas, the Kansas state school SENATE BILL No. 27—page 48
2785		-	for the blind and the Kansas state school for the deaf;
2786		-	(d) all sales of tangible personal property or services purchased by
2787		-	a contractor for the purpose of constructing, equipping, reconstructing,
2788		-	maintaining, repairing, enlarging, furnishing or remodeling facilities for
2789		-	any public or private nonprofit hospital or public hospital authority,
2790		-	public or private elementary or secondary school, a public or private
2791		-	nonprofit educational institution, state correctional institution including
2792		-	a privately constructed correctional institution contracted for state use
2793		-	and ownership, that would be exempt from taxation under the
2794		-	provisions of this act if purchased directly by such hospital or public
2795		-	hospital authority, school, educational institution or a state correctional
2796		-	institution; and all sales of tangible personal property or services
2797		-	purchased by a contractor for the purpose of constructing, equipping,
2798		-	reconstructing, maintaining, repairing, enlarging, furnishing or
2799		-	remodeling facilities for any political subdivision of the state or district
2800		-	described in subsection (s), the total cost of which is paid from funds of
2801		-	such political subdivision or district and that would be exempt from
2802		-	taxation under the provisions of this act if purchased directly by such
2803		-	political subdivision or district. Nothing in this subsection or in the
2804		-	provisions of K.S.A. 12-3418, and amendments thereto, shall be
2805		-	deemed to exempt the purchase of any construction machinery,
2806		-	equipment or tools used in the constructing, equipping, reconstructing,
2807		-	maintaining, repairing, enlarging, furnishing or remodeling facilities for
2808		-	any political subdivision of the state or any such district. As used in this
2809		-	subsection, K.S.A. 12-3418 and 79-3640, and amendments thereto,
2810		-	"funds of a political subdivision" shall mean general tax revenues, the
2811		-	proceeds of any bonds and gifts or grants-in-aid. Gifts shall not mean
2812		-	funds used for the purpose of constructing, equipping, reconstructing,
2813		-	repairing, enlarging, furnishing or remodeling facilities that are to be
2814		-	leased to the donor. When any political subdivision of the state, district
2815		-	described in subsection (s), public or private nonprofit hospital or
2816		-	public hospital authority, public or private elementary or secondary
2817		-	school, public or private nonprofit educational institution, state
2818		-	correctional institution including a privately constructed correctional
2819		-	institution contracted for state use and ownership shall contract for the
2820		-	purpose of constructing, equipping, reconstructing, maintaining,
2821		-	repairing, enlarging, furnishing or remodeling facilities, it shall obtain
2822		-	from the state and furnish to the contractor an exemption certificate for
2823		-	the project involved, and the contractor may purchase materials for
2824		-	incorporation in such project. The contractor shall furnish the number
2825		-	of such certificate to all suppliers from whom such purchases are made,
2826		-	and such suppliers shall execute invoices covering the same bearing the
2827		-	number of such certificate. Upon completion of the project the
2828		-	contractor shall furnish to the political subdivision, district described in
2829		-	subsection (s), hospital or public hospital authority, school, educational
2830		-	institution or department of corrections concerned a sworn statement,
2831		-	on a form to be provided by the director of taxation, that all purchases
2832		-	so made were entitled to exemption under this subsection. As an
2833		-	alternative to the foregoing procedure, any such contracting entity may
2834		-	apply to the secretary of revenue for agent status for the sole purpose of
2835		-	issuing and furnishing project exemption certificates to contractors
2836		-	pursuant to rules and regulations adopted by the secretary establishing
2837		-	conditions and standards for the granting and maintaining of such
2838		-	status. All invoices shall be held by the contractor for a period of five
2839		-	years and shall be subject to audit by the director of taxation. If any
2840		-	materials purchased under such a certificate are found not to have been
2841		-	incorporated in the building or other project or not to have been
2842		-	returned for credit or the sales or compensating tax otherwise imposed
2843		-	upon such materials that will not be so incorporated in the building or SENATE BILL No. 27—page 49
2844		-	other project reported and paid by such contractor to the director of
2845		-	taxation not later than the 20
2846		-	th
2847		-	day of the month following the close of
2848		-	the month in which it shall be determined that such materials will not
2849		-	be used for the purpose for which such certificate was issued, the
2850		-	political subdivision, district described in subsection (s), hospital or
2851		-	public hospital authority, school, educational institution or the
2852		-	contractor contracting with the department of corrections for a
2853		-	correctional institution concerned shall be liable for tax on all materials
2854		-	purchased for the project, and upon payment thereof it may recover the
2855		-	same from the contractor together with reasonable attorney fees. Any
2856		-	contractor or any agent, employee or subcontractor thereof, who shall
2857		-	use or otherwise dispose of any materials purchased under such a
2858		-	certificate for any purpose other than that for which such a certificate is
2859		-	issued without the payment of the sales or compensating tax otherwise
2860		-	imposed upon such materials, shall be guilty of a misdemeanor and,
2861		-	upon conviction therefor, shall be subject to the penalties provided for
2862		-	in K.S.A. 79-3615(h), and amendments thereto;
2863		-	(e) all sales of tangible personal property or services purchased by
2864		-	a contractor for the erection, repair or enlargement of buildings or other
2865		-	projects for the government of the United States, its agencies or
2866		-	instrumentalities, that would be exempt from taxation if purchased
2867		-	directly by the government of the United States, its agencies or
2868		-	instrumentalities. When the government of the United States, its
2869		-	agencies or instrumentalities shall contract for the erection, repair, or
2870		-	enlargement of any building or other project, it shall obtain from the
2871		-	state and furnish to the contractor an exemption certificate for the
2872		-	project involved, and the contractor may purchase materials for
2873		-	incorporation in such project. The contractor shall furnish the number
2874		-	of such certificates to all suppliers from whom such purchases are
2875		-	made, and such suppliers shall execute invoices covering the same
2876		-	bearing the number of such certificate. Upon completion of the project
2877		-	the contractor shall furnish to the government of the United States, its
2878		-	agencies or instrumentalities concerned a sworn statement, on a form to
2879		-	be provided by the director of taxation, that all purchases so made were
2880		-	entitled to exemption under this subsection. As an alternative to the
2881		-	foregoing procedure, any such contracting entity may apply to the
2882		-	secretary of revenue for agent status for the sole purpose of issuing and
2883		-	furnishing project exemption certificates to contractors pursuant to
2884		-	rules and regulations adopted by the secretary establishing conditions
2885		-	and standards for the granting and maintaining of such status. All
2886		-	invoices shall be held by the contractor for a period of five years and
2887		-	shall be subject to audit by the director of taxation. Any contractor or
2888		-	any agent, employee or subcontractor thereof, who shall use or
2889		-	otherwise dispose of any materials purchased under such a certificate
2890		-	for any purpose other than that for which such a certificate is issued
2891		-	without the payment of the sales or compensating tax otherwise
2892		-	imposed upon such materials, shall be guilty of a misdemeanor and,
2893		-	upon conviction therefor, shall be subject to the penalties provided for
2894		-	in K.S.A. 79-3615(h), and amendments thereto;
2895		-	(f) tangible personal property purchased by a railroad or public
2896		-	utility for consumption or movement directly and immediately in
2897		-	interstate commerce;
2898		-	(g) sales of aircraft including remanufactured and modified
2899		-	aircraft sold to persons using directly or through an authorized agent
2900		-	such aircraft as certified or licensed carriers of persons or property in
2901		-	interstate or foreign commerce under authority of the laws of the
2902		-	United States or any foreign government or sold to any foreign
2903		-	government or agency or instrumentality of such foreign government
2904		-	and all sales of aircraft for use outside of the United States and sales of SENATE BILL No. 27—page 50
2905		-	aircraft repair, modification and replacement parts and sales of services
2906		-	employed in the remanufacture, modification and repair of aircraft;
2907		-	(h) all rentals of nonsectarian textbooks by public or private
2908		-	elementary or secondary schools;
2909		-	(i) the lease or rental of all films, records, tapes, or any type of
2910		-	sound or picture transcriptions used by motion picture exhibitors;
2911		-	(j) meals served without charge or food used in the preparation of
2912		-	such meals to employees of any restaurant, eating house, dining car,
2913		-	hotel, drugstore or other place where meals or drinks are regularly sold
2914		-	to the public if such employees' duties are related to the furnishing or
2915		-	sale of such meals or drinks;
2916		-	(k) any motor vehicle, semitrailer or pole trailer, as such terms are
2917		-	defined by K.S.A. 8-126, and amendments thereto, or aircraft sold and
2918		-	delivered in this state to a bona fide resident of another state, which
2919		-	motor vehicle, semitrailer, pole trailer or aircraft is not to be registered
2920		-	or based in this state and which vehicle, semitrailer, pole trailer or
2921		-	aircraft will not remain in this state more than 10 days;
2922		-	(l) all isolated or occasional sales of tangible personal property,
2923		-	services, substances or things, except isolated or occasional sale of
2924		-	motor vehicles specifically taxed under the provisions of K.S.A. 79-
2925		-	3603(o), and amendments thereto;
2926		-	(m) all sales of tangible personal property that become an
2927		-	ingredient or component part of tangible personal property or services
2928		-	produced, manufactured or compounded for ultimate sale at retail
2929		-	within or without the state of Kansas; and any such producer,
2930		-	manufacturer or compounder may obtain from the director of taxation
2931		-	and furnish to the supplier an exemption certificate number for tangible
2932		-	personal property for use as an ingredient or component part of the
2933		-	property or services produced, manufactured or compounded;
2934		-	(n) all sales of tangible personal property that is consumed in the
2935		-	production, manufacture, processing, mining, drilling, refining or
2936		-	compounding of tangible personal property, the treating of by-products
2937		-	or wastes derived from any such production process, the providing of
2938		-	services or the irrigation of crops for ultimate sale at retail within or
2939		-	without the state of Kansas; and any purchaser of such property may
2940		-	obtain from the director of taxation and furnish to the supplier an
2941		-	exemption certificate number for tangible personal property for
2942		-	consumption in such production, manufacture, processing, mining,
2943		-	drilling, refining, compounding, treating, irrigation and in providing
2944		-	such services;
2945		-	(o) all sales of animals, fowl and aquatic plants and animals, the
2946		-	primary purpose of which is use in agriculture or aquaculture, as
2947		-	defined in K.S.A. 47-1901, and amendments thereto, the production of
2948		-	food for human consumption, the production of animal, dairy, poultry
2949		-	or aquatic plant and animal products, fiber or fur, or the production of
2950		-	offspring for use for any such purpose or purposes;
2951		-	(p) all sales of drugs dispensed pursuant to a prescription order by
2952		-	a licensed practitioner or a mid-level practitioner as defined by K.S.A.
2953		-	65-1626, and amendments thereto. As used in this subsection, "drug"
2954		-	means a compound, substance or preparation and any component of a
2955		-	compound, substance or preparation, other than food and food
2956		-	ingredients, dietary supplements or alcoholic beverages, recognized in
2957		-	the official United States pharmacopeia, official homeopathic
2958		-	pharmacopoeia of the United States or official national formulary, and
2959		-	supplement to any of them, intended for use in the diagnosis, cure,
2960		-	mitigation, treatment or prevention of disease or intended to affect the
2961		-	structure or any function of the body, except that for taxable years
2962		-	commencing after December 31, 2013, this subsection shall not apply
2963		-	to any sales of drugs used in the performance or induction of an SENATE BILL No. 27—page 51
2964		-	abortion, as defined in K.S.A. 65-6701, and amendments thereto;
2965		-	(q) all sales of insulin dispensed by a person licensed by the state
2966		-	board of pharmacy to a person for treatment of diabetes at the direction
2967		-	of a person licensed to practice medicine by the state board of healing
2968		-	arts;
2969		-	(r) all sales of oxygen delivery equipment, kidney dialysis
2970		-	equipment, enteral feeding systems, prosthetic devices and mobility
2971		-	enhancing equipment prescribed in writing by a person licensed to
2972		-	practice the healing arts, dentistry or optometry, and in addition to such
2973		-	sales, all sales of hearing aids, as defined by K.S.A. 74-5807(c), and
2974		-	amendments thereto, and repair and replacement parts therefor,
2975		-	including batteries, by a person licensed in the practice of dispensing
2976		-	and fitting hearing aids pursuant to the provisions of K.S.A. 74-5808,
2977		-	and amendments thereto. For the purposes of this subsection: (1)
2978		-	"Mobility enhancing equipment" means equipment including repair and
2979		-	replacement parts to same, but does not include durable medical
2980		-	equipment, which is primarily and customarily used to provide or
2981		-	increase the ability to move from one place to another and which is
2982		-	appropriate for use either in a home or a motor vehicle; is not generally
2983		-	used by persons with normal mobility; and does not include any motor
2984		-	vehicle or equipment on a motor vehicle normally provided by a motor
2985		-	vehicle manufacturer; and (2) "prosthetic device" means a replacement,
2986		-	corrective or supportive device including repair and replacement parts
2987		-	for same worn on or in the body to artificially replace a missing portion
2988		-	of the body, prevent or correct physical deformity or malfunction or
2989		-	support a weak or deformed portion of the body;
2990		-	(s) except as provided in K.S.A. 82a-2101, and amendments
2991		-	thereto, all sales of tangible personal property or services purchased
2992		-	directly or indirectly by a groundwater management district organized
2993		-	or operating under the authority of K.S.A. 82a-1020 et seq., and
2994		-	amendments thereto, by a rural water district organized or operating
2995		-	under the authority of K.S.A. 82a-612, and amendments thereto, or by a
2996		-	water supply district organized or operating under the authority of
2997		-	K.S.A. 19-3501 et seq., 19-3522 et seq. or 19-3545, and amendments
2998		-	thereto, which property or services are used in the construction
2999		-	activities, operation or maintenance of the district;
3000		-	(t) all sales of farm machinery and equipment or aquaculture
3001		-	machinery and equipment, repair and replacement parts therefor and
3002		-	services performed in the repair and maintenance of such machinery
3003		-	and equipment. For the purposes of this subsection the term "farm
3004		-	machinery and equipment or aquaculture machinery and equipment"
3005		-	shall include a work-site utility vehicle, as defined in K.S.A. 8-126, and
3006		-	amendments thereto, and is equipped with a bed or cargo box for
3007		-	hauling materials, and shall also include machinery and equipment used
3008		-	in the operation of Christmas tree farming but shall not include any
3009		-	passenger vehicle, truck, truck tractor, trailer, semitrailer or pole trailer,
3010		-	other than a farm trailer, as such terms are defined by K.S.A. 8-126,
3011		-	and amendments thereto. "Farm machinery and equipment" includes
3012		-	precision farming equipment that is portable or is installed or purchased
3013		-	to be installed on farm machinery and equipment. "Precision farming
3014		-	equipment" includes the following items used only in computer-
3015		-	assisted farming, ranching or aquaculture production operations: Soil
3016		-	testing sensors, yield monitors, computers, monitors, software, global
3017		-	positioning and mapping systems, guiding systems, modems, data
3018		-	communications equipment and any necessary mounting hardware,
3019		-	wiring and antennas. Each purchaser of farm machinery and equipment
3020		-	or aquaculture machinery and equipment exempted herein must certify
3021		-	in writing on the copy of the invoice or sales ticket to be retained by the
3022		-	seller that the farm machinery and equipment or aquaculture machinery SENATE BILL No. 27—page 52
3023		-	and equipment purchased will be used only in farming, ranching or
3024		-	aquaculture production. Farming or ranching shall include the operation
3025		-	of a feedlot and farm and ranch work for hire and the operation of a
3026		-	nursery;
3027		-	(u) all leases or rentals of tangible personal property used as a
3028		-	dwelling if such tangible personal property is leased or rented for a
3029		-	period of more than 28 consecutive days;
3030		-	(v) all sales of tangible personal property to any contractor for use
3031		-	in preparing meals for delivery to homebound elderly persons over 60
3032		-	years of age and to homebound disabled persons or to be served at a
3033		-	group-sitting at a location outside of the home to otherwise homebound
3034		-	elderly persons over 60 years of age and to otherwise homebound
3035		-	disabled persons, as all or part of any food service project funded in
3036		-	whole or in part by government or as part of a private nonprofit food
3037		-	service project available to all such elderly or disabled persons residing
3038		-	within an area of service designated by the private nonprofit
3039		-	organization, and all sales of tangible personal property for use in
3040		-	preparing meals for consumption by indigent or homeless individuals
3041		-	whether or not such meals are consumed at a place designated for such
3042		-	purpose, and all sales of food products by or on behalf of any such
3043		-	contractor or organization for any such purpose;
3044		-	(w) all sales of natural gas, electricity, heat and water delivered
3045		-	through mains, lines or pipes: (1) To residential premises for
3046		-	noncommercial use by the occupant of such premises; (2) for
3047		-	agricultural use and also, for such use, all sales of propane gas; (3) for
3048		-	use in the severing of oil; and (4) to any property which is exempt from
3049		-	property taxation pursuant to K.S.A. 79-201b, Second through Sixth.
3050		-	As used in this paragraph, "severing" means the same as defined in
3051		-	K.S.A. 79-4216(k), and amendments thereto. For all sales of natural
3052		-	gas, electricity and heat delivered through mains, lines or pipes
3053		-	pursuant to the provisions of subsection (w)(1) and (w)(2), the
3054		-	provisions of this subsection shall expire on December 31, 2005;
3055		-	(x) all sales of propane gas, LP-gas, coal, wood and other fuel
3056		-	sources for the production of heat or lighting for noncommercial use of
3057		-	an occupant of residential premises occurring prior to January 1, 2006;
3058		-	(y) all sales of materials and services used in the repairing,
3059		-	servicing, altering, maintaining, manufacturing, remanufacturing, or
3060		-	modification of railroad rolling stock for use in interstate or foreign
3061		-	commerce under authority of the laws of the United States;
3062		-	(z) all sales of tangible personal property and services purchased
3063		-	directly by a port authority or by a contractor therefor as provided by
3064		-	the provisions of K.S.A. 12-3418, and amendments thereto;
3065		-	(aa) all sales of materials and services applied to equipment that is
3066		-	transported into the state from without the state for repair, service,
3067		-	alteration, maintenance, remanufacture or modification and that is
3068		-	subsequently transported outside the state for use in the transmission of
3069		-	liquids or natural gas by means of pipeline in interstate or foreign
3070		-	commerce under authority of the laws of the United States;
3071		-	(bb) all sales of used mobile homes or manufactured homes. As
3072		-	used in this subsection: (1) "Mobile homes" and "manufactured homes"
3073		-	mean the same as defined in K.S.A. 58-4202, and amendments thereto;
3074		-	and (2) "sales of used mobile homes or manufactured homes" means
3075		-	sales other than the original retail sale thereof;
3076		-	(cc) all sales of tangible personal property or services purchased
3077		-	prior to January 1, 2012, except as otherwise provided, for the purpose
3078		-	of and in conjunction with constructing, reconstructing, enlarging or
3079		-	remodeling a business or retail business that meets the requirements
3080		-	established in K.S.A. 74-50,115, and amendments thereto, and the sale
3081		-	and installation of machinery and equipment purchased for installation SENATE BILL No. 27—page 53
3082		-	at any such business or retail business, and all sales of tangible personal
3083		-	property or services purchased on or after January 1, 2012, for the
3084		-	purpose of and in conjunction with constructing, reconstructing,
3085		-	enlarging or remodeling a business that meets the requirements
3086		-	established in K.S.A. 74-50,115(e), and amendments thereto, and the
3087		-	sale and installation of machinery and equipment purchased for
3088		-	installation at any such business. When a person shall contract for the
3089		-	construction, reconstruction, enlargement or remodeling of any such
3090		-	business or retail business, such person shall obtain from the state and
3091		-	furnish to the contractor an exemption certificate for the project
3092		-	involved, and the contractor may purchase materials, machinery and
3093		-	equipment for incorporation in such project. The contractor shall
3094		-	furnish the number of such certificates to all suppliers from whom such
3095		-	purchases are made, and such suppliers shall execute invoices covering
3096		-	the same bearing the number of such certificate. Upon completion of
3097		-	the project the contractor shall furnish to the owner of the business or
3098		-	retail business a sworn statement, on a form to be provided by the
3099		-	director of taxation, that all purchases so made were entitled to
3100		-	exemption under this subsection. All invoices shall be held by the
3101		-	contractor for a period of five years and shall be subject to audit by the
3102		-	director of taxation. Any contractor or any agent, employee or
3103		-	subcontractor thereof, who shall use or otherwise dispose of any
3104		-	materials, machinery or equipment purchased under such a certificate
3105		-	for any purpose other than that for which such a certificate is issued
3106		-	without the payment of the sales or compensating tax otherwise
3107		-	imposed thereon, shall be guilty of a misdemeanor and, upon
3108		-	conviction therefor, shall be subject to the penalties provided for in
3109		-	K.S.A. 79-3615(h), and amendments thereto. As used in this
3110		-	subsection, "business" and "retail business" mean the same as defined
3111		-	in K.S.A. 74-50,114, and amendments thereto. Project exemption
3112		-	certificates that have been previously issued under this subsection by
3113		-	the department of revenue pursuant to K.S.A. 74-50,115, and
3114		-	amendments thereto, but not including K.S.A. 74-50,115(e), and
3115		-	amendments thereto, prior to January 1, 2012, and have not expired
3116		-	will be effective for the term of the project or two years from the
3117		-	effective date of the certificate, whichever occurs earlier. Project
3118		-	exemption certificates that are submitted to the department of revenue
3119		-	prior to January 1, 2012, and are found to qualify will be issued a
3120		-	project exemption certificate that will be effective for a two-year period
3121		-	or for the term of the project, whichever occurs earlier;
3122		-	(dd) all sales of tangible personal property purchased with food
3123		-	stamps issued by the United States department of agriculture;
3124		-	(ee) all sales of lottery tickets and shares made as part of a lottery
3125		-	operated by the state of Kansas;
3126		-	(ff) on and after July 1, 1988, all sales of new mobile homes or
3127		-	manufactured homes to the extent of 40% of the gross receipts,
3128		-	determined without regard to any trade-in allowance, received from
3129		-	such sale. As used in this subsection, "mobile homes" and
3130		-	"manufactured homes" mean the same as defined in K.S.A. 58-4202,
3131		-	and amendments thereto;
3132		-	(gg) all sales of tangible personal property purchased in
3133		-	accordance with vouchers issued pursuant to the federal special
3134		-	supplemental food program for women, infants and children;
3135		-	(hh) all sales of medical supplies and equipment, including
3136		-	durable medical equipment, purchased directly by a nonprofit skilled
3137		-	nursing home or nonprofit intermediate nursing care home, as defined
3138		-	by K.S.A. 39-923, and amendments thereto, for the purpose of
3139		-	providing medical services to residents thereof. This exemption shall
3140		-	not apply to tangible personal property customarily used for human SENATE BILL No. 27—page 54
3141		-	habitation purposes. As used in this subsection, "durable medical
3142		-	equipment" means equipment including repair and replacement parts
3143		-	for such equipment, that can withstand repeated use, is primarily and
3144		-	customarily used to serve a medical purpose, generally is not useful to a
3145		-	person in the absence of illness or injury and is not worn in or on the
3146		-	body, but does not include mobility enhancing equipment as defined in
3147		-	subsection (r), oxygen delivery equipment, kidney dialysis equipment
3148		-	or enteral feeding systems;
3149		-	(ii) all sales of tangible personal property purchased directly by a
3150		-	nonprofit organization for nonsectarian comprehensive multidiscipline
3151		-	youth development programs and activities provided or sponsored by
3152		-	such organization, and all sales of tangible personal property by or on
3153		-	behalf of any such organization. This exemption shall not apply to
3154		-	tangible personal property customarily used for human habitation
3155		-	purposes;
3156		-	(jj) all sales of tangible personal property or services, including
3157		-	the renting and leasing of tangible personal property, purchased directly
3158		-	on behalf of a community-based facility for people with intellectual
3159		-	disability or mental health center organized pursuant to K.S.A. 19-4001
3160		-	et seq., and amendments thereto, and licensed in accordance with the
3161		-	provisions of K.S.A. 39-2001 et seq., and amendments thereto, and all
3162		-	sales of tangible personal property or services purchased by contractors
3163		-	during the time period from July, 2003, through June, 2006, for the
3164		-	purpose of constructing, equipping, maintaining or furnishing a new
3165		-	facility for a community-based facility for people with intellectual
3166		-	disability or mental health center located in Riverton, Cherokee County,
3167		-	Kansas, that would have been eligible for sales tax exemption pursuant
3168		-	to this subsection if purchased directly by such facility or center. This
3169		-	exemption shall not apply to tangible personal property customarily
3170		-	used for human habitation purposes;
3171		-	(kk) (1) (A) all sales of machinery and equipment that are used in
3172		-	this state as an integral or essential part of an integrated production
3173		-	operation by a manufacturing or processing plant or facility;
3174		-	(B) all sales of installation, repair and maintenance services
3175		-	performed on such machinery and equipment; and
3176		-	(C) all sales of repair and replacement parts and accessories
3177		-	purchased for such machinery and equipment.
3178		-	(2) For purposes of this subsection:
3179		-	(A) "Integrated production operation" means an integrated series
3180		-	of operations engaged in at a manufacturing or processing plant or
3181		-	facility to process, transform or convert tangible personal property by
3182		-	physical, chemical or other means into a different form, composition or
3183		-	character from that in which it originally existed. Integrated production
3184		-	operations shall include: (i) Production line operations, including
3185		-	packaging operations; (ii) preproduction operations to handle, store and
3186		-	treat raw materials; (iii) post production handling, storage, warehousing
3187		-	and distribution operations; and (iv) waste, pollution and environmental
3188		-	control operations, if any;
3189		-	(B) "production line" means the assemblage of machinery and
3190		-	equipment at a manufacturing or processing plant or facility where the
3191		-	actual transformation or processing of tangible personal property
3192		-	occurs;
3193		-	(C) "manufacturing or processing plant or facility" means a single,
3194		-	fixed location owned or controlled by a manufacturing or processing
3195		-	business that consists of one or more structures or buildings in a
3196		-	contiguous area where integrated production operations are conducted
3197		-	to manufacture or process tangible personal property to be ultimately
3198		-	sold at retail. Such term shall not include any facility primarily
3199		-	operated for the purpose of conveying or assisting in the conveyance of SENATE BILL No. 27—page 55
3200		-	natural gas, electricity, oil or water. A business may operate one or
3201		-	more manufacturing or processing plants or facilities at different
3202		-	locations to manufacture or process a single product of tangible
3203		-	personal property to be ultimately sold at retail;
3204		-	(D) "manufacturing or processing business" means a business that
3205		-	utilizes an integrated production operation to manufacture, process,
3206		-	fabricate, finish or assemble items for wholesale and retail distribution
3207		-	as part of what is commonly regarded by the general public as an
3208		-	industrial manufacturing or processing operation or an agricultural
3209		-	commodity processing operation. (i) Industrial manufacturing or
3210		-	processing operations include, by way of illustration but not of
3211		-	limitation, the fabrication of automobiles, airplanes, machinery or
3212		-	transportation equipment, the fabrication of metal, plastic, wood or
3213		-	paper products, electricity power generation, water treatment,
3214		-	petroleum refining, chemical production, wholesale bottling, newspaper
3215		-	printing, ready mixed concrete production, and the remanufacturing of
3216		-	used parts for wholesale or retail sale. Such processing operations shall
3217		-	include operations at an oil well, gas well, mine or other excavation site
3218		-	where the oil, gas, minerals, coal, clay, stone, sand or gravel that has
3219		-	been extracted from the earth is cleaned, separated, crushed, ground,
3220		-	milled, screened, washed or otherwise treated or prepared before its
3221		-	transmission to a refinery or before any other wholesale or retail
3222		-	distribution. (ii) Agricultural commodity processing operations include,
3223		-	by way of illustration but not of limitation, meat packing, poultry
3224		-	slaughtering and dressing, processing and packaging farm and dairy
3225		-	products in sealed containers for wholesale and retail distribution, feed
3226		-	grinding, grain milling, frozen food processing, and grain handling,
3227		-	cleaning, blending, fumigation, drying and aeration operations engaged
3228		-	in by grain elevators or other grain storage facilities. (iii)
3229		-	Manufacturing or processing businesses do not include, by way of
3230		-	illustration but not of limitation, nonindustrial businesses whose
3231		-	operations are primarily retail and that produce or process tangible
3232		-	personal property as an incidental part of conducting the retail business,
3233		-	such as retailers who bake, cook or prepare food products in the regular
3234		-	course of their retail trade, grocery stores, meat lockers and meat
3235		-	markets that butcher or dress livestock or poultry in the regular course
3236		-	of their retail trade, contractors who alter, service, repair or improve
3237		-	real property, and retail businesses that clean, service or refurbish and
3238		-	repair tangible personal property for its owner;
3239		-	(E) "repair and replacement parts and accessories" means all parts
3240		-	and accessories for exempt machinery and equipment, including, but
3241		-	not limited to, dies, jigs, molds, patterns and safety devices that are
3242		-	attached to exempt machinery or that are otherwise used in production,
3243		-	and parts and accessories that require periodic replacement such as
3244		-	belts, drill bits, grinding wheels, grinding balls, cutting bars, saws,
3245		-	refractory brick and other refractory items for exempt kiln equipment
3246		-	used in production operations;
3247		-	(F) "primary" or "primarily" mean more than 50% of the time.
3248		-	(3) For purposes of this subsection, machinery and equipment
3249		-	shall be deemed to be used as an integral or essential part of an
3250		-	integrated production operation when used to:
3251		-	(A) Receive, transport, convey, handle, treat or store raw materials
3252		-	in preparation of its placement on the production line;
3253		-	(B) transport, convey, handle or store the property undergoing
3254		-	manufacturing or processing at any point from the beginning of the
3255		-	production line through any warehousing or distribution operation of
3256		-	the final product that occurs at the plant or facility;
3257		-	(C) act upon, effect, promote or otherwise facilitate a physical
3258		-	change to the property undergoing manufacturing or processing; SENATE BILL No. 27—page 56
3259		-	(D) guide, control or direct the movement of property undergoing
3260		-	manufacturing or processing;
3261		-	(E) test or measure raw materials, the property undergoing
3262		-	manufacturing or processing or the finished product, as a necessary part
3263		-	of the manufacturer's integrated production operations;
3264		-	(F) plan, manage, control or record the receipt and flow of
3265		-	inventories of raw materials, consumables and component parts, the
3266		-	flow of the property undergoing manufacturing or processing and the
3267		-	management of inventories of the finished product;
3268		-	(G) produce energy for, lubricate, control the operating of or
3269		-	otherwise enable the functioning of other production machinery and
3270		-	equipment and the continuation of production operations;
3271		-	(H) package the property being manufactured or processed in a
3272		-	container or wrapping in which such property is normally sold or
3273		-	transported;
3274		-	(I) transmit or transport electricity, coke, gas, water, steam or
3275		-	similar substances used in production operations from the point of
3276		-	generation, if produced by the manufacturer or processor at the plant
3277		-	site, to that manufacturer's production operation; or, if purchased or
3278		-	delivered from off-site, from the point where the substance enters the
3279		-	site of the plant or facility to that manufacturer's production operations;
3280		-	(J) cool, heat, filter, refine or otherwise treat water, steam, acid,
3281		-	oil, solvents or other substances that are used in production operations;
3282		-	(K) provide and control an environment required to maintain
3283		-	certain levels of air quality, humidity or temperature in special and
3284		-	limited areas of the plant or facility, where such regulation of
3285		-	temperature or humidity is part of and essential to the production
3286		-	process;
3287		-	(L) treat, transport or store waste or other byproducts of
3288		-	production operations at the plant or facility; or
3289		-	(M) control pollution at the plant or facility where the pollution is
3290		-	produced by the manufacturing or processing operation.
3291		-	(4) The following machinery, equipment and materials shall be
3292		-	deemed to be exempt even though it may not otherwise qualify as
3293		-	machinery and equipment used as an integral or essential part of an
3294		-	integrated production operation: (A) Computers and related peripheral
3295		-	equipment that are utilized by a manufacturing or processing business
3296		-	for engineering of the finished product or for research and development
3297		-	or product design; (B) machinery and equipment that is utilized by a
3298		-	manufacturing or processing business to manufacture or rebuild
3299		-	tangible personal property that is used in manufacturing or processing
3300		-	operations, including tools, dies, molds, forms and other parts of
3301		-	qualifying machinery and equipment; (C) portable plants for aggregate
3302		-	concrete, bulk cement and asphalt including cement mixing drums to be
3303		-	attached to a motor vehicle; (D) industrial fixtures, devices, support
3304		-	facilities and special foundations necessary for manufacturing and
3305		-	production operations, and materials and other tangible personal
3306		-	property sold for the purpose of fabricating such fixtures, devices,
3307		-	facilities and foundations. An exemption certificate for such purchases
3308		-	shall be signed by the manufacturer or processor. If the fabricator
3309		-	purchases such material, the fabricator shall also sign the exemption
3310		-	certificate; (E) a manufacturing or processing business' laboratory
3311		-	equipment that is not located at the plant or facility, but that would
3312		-	otherwise qualify for exemption under subsection (3)(E); (F) all
3313		-	machinery and equipment used in surface mining activities as described
3314		-	in K.S.A. 49-601 et seq., and amendments thereto, beginning from the
3315		-	time a reclamation plan is filed to the acceptance of the completed final
3316		-	site reclamation.
3317		-	(5) "Machinery and equipment used as an integral or essential part SENATE BILL No. 27—page 57
3318		-	of an integrated production operation" shall not include:
3319		-	(A) Machinery and equipment used for nonproduction purposes,
3320		-	including, but not limited to, machinery and equipment used for plant
3321		-	security, fire prevention, first aid, accounting, administration, record
3322		-	keeping, advertising, marketing, sales or other related activities, plant
3323		-	cleaning, plant communications and employee work scheduling;
3324		-	(B) machinery, equipment and tools used primarily in maintaining
3325		-	and repairing any type of machinery and equipment or the building and
3326		-	plant;
3327		-	(C) transportation, transmission and distribution equipment not
3328		-	primarily used in a production, warehousing or material handling
3329		-	operation at the plant or facility, including the means of conveyance of
3330		-	natural gas, electricity, oil or water, and equipment related thereto,
3331		-	located outside the plant or facility;
3332		-	(D) office machines and equipment including computers and
3333		-	related peripheral equipment not used directly and primarily to control
3334		-	or measure the manufacturing process;
3335		-	(E) furniture and other furnishings;
3336		-	(F) buildings, other than exempt machinery and equipment that is
3337		-	permanently affixed to or becomes a physical part of the building, and
3338		-	any other part of real estate that is not otherwise exempt;
3339		-	(G) building fixtures that are not integral to the manufacturing
3340		-	operation, such as utility systems for heating, ventilation, air
3341		-	conditioning, communications, plumbing or electrical;
3342		-	(H) machinery and equipment used for general plant heating,
3343		-	cooling and lighting;
3344		-	(I) motor vehicles that are registered for operation on public
3345		-	highways; or
3346		-	(J) employee apparel, except safety and protective apparel that is
3347		-	purchased by an employer and furnished gratuitously to employees
3348		-	who are involved in production or research activities.
3349		-	(6) Paragraphs (3) and (5) shall not be construed as exclusive
3350		-	listings of the machinery and equipment that qualify or do not qualify
3351		-	as an integral or essential part of an integrated production operation.
3352		-	When machinery or equipment is used as an integral or essential part of
3353		-	production operations part of the time and for nonproduction purposes
3354		-	at other times, the primary use of the machinery or equipment shall
3355		-	determine whether or not such machinery or equipment qualifies for
3356		-	exemption.
3357		-	(7) The secretary of revenue shall adopt rules and regulations
3358		-	necessary to administer the provisions of this subsection;
3359		-	(ll) all sales of educational materials purchased for distribution to
3360		-	the public at no charge by a nonprofit corporation organized for the
3361		-	purpose of encouraging, fostering and conducting programs for the
3362		-	improvement of public health, except that for taxable years
3363		-	commencing after December 31, 2013, this subsection shall not apply
3364		-	to any sales of such materials purchased by a nonprofit corporation
3365		-	which performs any abortion, as defined in K.S.A. 65-6701, and
3366		-	amendments thereto;
3367		-	(mm) all sales of seeds and tree seedlings; fertilizers, insecticides,
3368		-	herbicides, germicides, pesticides and fungicides; and services,
3369		-	purchased and used for the purpose of producing plants in order to
3370		-	prevent soil erosion on land devoted to agricultural use;
3371		-	(nn) except as otherwise provided in this act, all sales of services
3372		-	rendered by an advertising agency or licensed broadcast station or any
3373		-	member, agent or employee thereof;
3374		-	(oo) all sales of tangible personal property purchased by a
3375		-	community action group or agency for the exclusive purpose of
3376		-	repairing or weatherizing housing occupied by low-income individuals; SENATE BILL No. 27—page 58
3377		-	(pp) all sales of drill bits and explosives actually utilized in the
3378		-	exploration and production of oil or gas;
3379		-	(qq) all sales of tangible personal property and services purchased
3380		-	by a nonprofit museum or historical society or any combination thereof,
3381		-	including a nonprofit organization that is organized for the purpose of
3382		-	stimulating public interest in the exploration of space by providing
3383		-	educational information, exhibits and experiences, that is exempt from
3384		-	federal income taxation pursuant to section 501(c)(3) of the federal
3385		-	internal revenue code of 1986;
3386		-	(rr) all sales of tangible personal property that will admit the
3387		-	purchaser thereof to any annual event sponsored by a nonprofit
3388		-	organization that is exempt from federal income taxation pursuant to
3389		-	section 501(c)(3) of the federal internal revenue code of 1986, except
3390		-	that for taxable years commencing after December 31, 2013, this
3391		-	subsection shall not apply to any sales of such tangible personal
3392		-	property purchased by a nonprofit organization which performs any
3393		-	abortion, as defined in K.S.A. 65-6701, and amendments thereto;
3394		-	(ss) all sales of tangible personal property and services purchased
3395		-	by a public broadcasting station licensed by the federal
3396		-	communications commission as a noncommercial educational
3397		-	television or radio station;
3398		-	(tt) all sales of tangible personal property and services purchased
3399		-	by or on behalf of a not-for-profit corporation that is exempt from
3400		-	federal income taxation pursuant to section 501(c)(3) of the federal
3401		-	internal revenue code of 1986, for the sole purpose of constructing a
3402		-	Kansas Korean War memorial;
3403		-	(uu) all sales of tangible personal property and services purchased
3404		-	by or on behalf of any rural volunteer fire-fighting organization for use
3405		-	exclusively in the performance of its duties and functions;
3406		-	(vv) all sales of tangible personal property purchased by any of the
3407		-	following organizations that are exempt from federal income taxation
3408		-	pursuant to section 501(c)(3) of the federal internal revenue code of
3409		-	1986, for the following purposes, and all sales of any such property by
3410		-	or on behalf of any such organization for any such purpose:
3411		-	(1) The American heart association, Kansas affiliate, inc. for the
3412		-	purposes of providing education, training, certification in emergency
3413		-	cardiac care, research and other related services to reduce disability and
3414		-	death from cardiovascular diseases and stroke;
3415		-	(2) the Kansas alliance for the mentally ill, inc. for the purpose of
3416		-	advocacy for persons with mental illness and to education, research and
3417		-	support for their families;
3418		-	(3) the Kansas mental illness awareness council for the purposes
3419		-	of advocacy for persons who are mentally ill and for education,
3420		-	research and support for them and their families;
3421		-	(4) the American diabetes association Kansas affiliate, inc. for the
3422		-	purpose of eliminating diabetes through medical research, public
3423		-	education focusing on disease prevention and education, patient
3424		-	education including information on coping with diabetes, and
3425		-	professional education and training;
3426		-	(5) the American lung association of Kansas, inc. for the purpose
3427		-	of eliminating all lung diseases through medical research, public
3428		-	education including information on coping with lung diseases,
3429		-	professional education and training related to lung disease and other
3430		-	related services to reduce the incidence of disability and death due to
3431		-	lung disease;
3432		-	(6) the Kansas chapters of the Alzheimer's disease and related
3433		-	disorders association, inc. for the purpose of providing assistance and
3434		-	support to persons in Kansas with Alzheimer's disease, and their
3435		-	families and caregivers; SENATE BILL No. 27—page 59
3436		-	(7) the Kansas chapters of the Parkinson's disease association for
3437		-	the purpose of eliminating Parkinson's disease through medical
3438		-	research and public and professional education related to such disease;
3439		-	(8) the national kidney foundation of Kansas and western Missouri
3440		-	for the purpose of eliminating kidney disease through medical research
3441		-	and public and private education related to such disease;
3442		-	(9) the heartstrings community foundation for the purpose of
3443		-	providing training, employment and activities for adults with
3444		-	developmental disabilities;
3445		-	(10) the cystic fibrosis foundation, heart of America chapter, for
3446		-	the purposes of assuring the development of the means to cure and
3447		-	control cystic fibrosis and improving the quality of life for those with
3448		-	the disease;
3449		-	(11) the spina bifida association of Kansas for the purpose of
3450		-	providing financial, educational and practical aid to families and
3451		-	individuals with spina bifida. Such aid includes, but is not limited to,
3452		-	funding for medical devices, counseling and medical educational
3453		-	opportunities;
3454		-	(12) the CHWC, Inc., for the purpose of rebuilding urban core
3455		-	neighborhoods through the construction of new homes, acquiring and
3456		-	renovating existing homes and other related activities, and promoting
3457		-	economic development in such neighborhoods;
3458		-	(13) the cross-lines cooperative council for the purpose of
3459		-	providing social services to low income individuals and families;
3460		-	(14) the dreams work, inc., for the purpose of providing young
3461		-	adult day services to individuals with developmental disabilities and
3462		-	assisting families in avoiding institutional or nursing home care for a
3463		-	developmentally disabled member of their family;
3464		-	(15) the KSDS, Inc., for the purpose of promoting the
3465		-	independence and inclusion of people with disabilities as fully
3466		-	participating and contributing members of their communities and
3467		-	society through the training and providing of guide and service dogs to
3468		-	people with disabilities, and providing disability education and
3469		-	awareness to the general public;
3470		-	(16) the lyme association of greater Kansas City, Inc., for the
3471		-	purpose of providing support to persons with lyme disease and public
3472		-	education relating to the prevention, treatment and cure of lyme
3473		-	disease;
3474		-	(17) the dream factory, inc., for the purpose of granting the dreams
3475		-	of children with critical and chronic illnesses;
3476		-	(18) the Ottawa Suzuki strings, inc., for the purpose of providing
3477		-	students and families with education and resources necessary to enable
3478		-	each child to develop fine character and musical ability to the fullest
3479		-	potential;
3480		-	(19) the international association of lions clubs for the purpose of
3481		-	creating and fostering a spirit of understanding among all people for
3482		-	humanitarian needs by providing voluntary services through
3483		-	community involvement and international cooperation;
3484		-	(20) the Johnson county young matrons, inc., for the purpose of
3485		-	promoting a positive future for members of the community through
3486		-	volunteerism, financial support and education through the efforts of an
3487		-	all volunteer organization;
3488		-	(21) the American cancer society, inc., for the purpose of
3489		-	eliminating cancer as a major health problem by preventing cancer,
3490		-	saving lives and diminishing suffering from cancer, through research,
3491		-	education, advocacy and service;
3492		-	(22) the community services of Shawnee, inc., for the purpose of
3493		-	providing food and clothing to those in need;
3494		-	(23) the angel babies association, for the purpose of providing SENATE BILL No. 27—page 60
3495		-	assistance, support and items of necessity to teenage mothers and their
3496		-	babies; and
3497		-	(24) the Kansas fairgrounds foundation for the purpose of the
3498		-	preservation, renovation and beautification of the Kansas state
3499		-	fairgrounds;
3500		-	(ww) all sales of tangible personal property purchased by the
3501		-	habitat for humanity for the exclusive use of being incorporated within
3502		-	a housing project constructed by such organization;
3503		-	(xx) all sales of tangible personal property and services purchased
3504		-	by a nonprofit zoo that is exempt from federal income taxation pursuant
3505		-	to section 501(c)(3) of the federal internal revenue code of 1986, or on
3506		-	behalf of such zoo by an entity itself exempt from federal income
3507		-	taxation pursuant to section 501(c)(3) of the federal internal revenue
3508		-	code of 1986 contracted with to operate such zoo and all sales of
3509		-	tangible personal property or services purchased by a contractor for the
3510		-	purpose of constructing, equipping, reconstructing, maintaining,
3511		-	repairing, enlarging, furnishing or remodeling facilities for any
3512		-	nonprofit zoo that would be exempt from taxation under the provisions
3513		-	of this section if purchased directly by such nonprofit zoo or the entity
3514		-	operating such zoo. Nothing in this subsection shall be deemed to
3515		-	exempt the purchase of any construction machinery, equipment or tools
3516		-	used in the constructing, equipping, reconstructing, maintaining,
3517		-	repairing, enlarging, furnishing or remodeling facilities for any
3518		-	nonprofit zoo. When any nonprofit zoo shall contract for the purpose of
3519		-	constructing, equipping, reconstructing, maintaining, repairing,
3520		-	enlarging, furnishing or remodeling facilities, it shall obtain from the
3521		-	state and furnish to the contractor an exemption certificate for the
3522		-	project involved, and the contractor may purchase materials for
3523		-	incorporation in such project. The contractor shall furnish the number
3524		-	of such certificate to all suppliers from whom such purchases are made,
3525		-	and such suppliers shall execute invoices covering the same bearing the
3526		-	number of such certificate. Upon completion of the project the
3527		-	contractor shall furnish to the nonprofit zoo concerned a sworn
3528		-	statement, on a form to be provided by the director of taxation, that all
3529		-	purchases so made were entitled to exemption under this subsection.
3530		-	All invoices shall be held by the contractor for a period of five years
3531		-	and shall be subject to audit by the director of taxation. If any materials
3532		-	purchased under such a certificate are found not to have been
3533		-	incorporated in the building or other project or not to have been
3534		-	returned for credit or the sales or compensating tax otherwise imposed
3535		-	upon such materials that will not be so incorporated in the building or
3536		-	other project reported and paid by such contractor to the director of
3537		-	taxation not later than the 20
3538		-	th
3539		-	day of the month following the close of
3540		-	the month in which it shall be determined that such materials will not
3541		-	be used for the purpose for which such certificate was issued, the
3542		-	nonprofit zoo concerned shall be liable for tax on all materials
3543		-	purchased for the project, and upon payment thereof it may recover the
3544		-	same from the contractor together with reasonable attorney fees. Any
3545		-	contractor or any agent, employee or subcontractor thereof, who shall
3546		-	use or otherwise dispose of any materials purchased under such a
3547		-	certificate for any purpose other than that for which such a certificate is
3548		-	issued without the payment of the sales or compensating tax otherwise
3549		-	imposed upon such materials, shall be guilty of a misdemeanor and,
3550		-	upon conviction therefor, shall be subject to the penalties provided for
3551		-	in K.S.A. 79-3615(h), and amendments thereto;
3552		-	(yy) all sales of tangible personal property and services purchased
3553		-	by a parent-teacher association or organization, and all sales of tangible
3554		-	personal property by or on behalf of such association or organization;
3555		-	(zz) all sales of machinery and equipment purchased by over-the- SENATE BILL No. 27—page 61
3556		-	air, free access radio or television station that is used directly and
3557		-	primarily for the purpose of producing a broadcast signal or is such that
3558		-	the failure of the machinery or equipment to operate would cause
3559		-	broadcasting to cease. For purposes of this subsection, machinery and
3560		-	equipment shall include, but not be limited to, that required by rules
3561		-	and regulations of the federal communications commission, and all
3562		-	sales of electricity which are essential or necessary for the purpose of
3563		-	producing a broadcast signal or is such that the failure of the electricity
3564		-	would cause broadcasting to cease;
3565		-	(aaa) all sales of tangible personal property and services purchased
3566		-	by a religious organization that is exempt from federal income taxation
3567		-	pursuant to section 501(c)(3) of the federal internal revenue code, and
3568		-	used exclusively for religious purposes, and all sales of tangible
3569		-	personal property or services purchased by a contractor for the purpose
3570		-	of constructing, equipping, reconstructing, maintaining, repairing,
3571		-	enlarging, furnishing or remodeling facilities for any such organization
3572		-	that would be exempt from taxation under the provisions of this section
3573		-	if purchased directly by such organization. Nothing in this subsection
3574		-	shall be deemed to exempt the purchase of any construction machinery,
3575		-	equipment or tools used in the constructing, equipping, reconstructing,
3576		-	maintaining, repairing, enlarging, furnishing or remodeling facilities for
3577		-	any such organization. When any such organization shall contract for
3578		-	the purpose of constructing, equipping, reconstructing, maintaining,
3579		-	repairing, enlarging, furnishing or remodeling facilities, it shall obtain
3580		-	from the state and furnish to the contractor an exemption certificate for
3581		-	the project involved, and the contractor may purchase materials for
3582		-	incorporation in such project. The contractor shall furnish the number
3583		-	of such certificate to all suppliers from whom such purchases are made,
3584		-	and such suppliers shall execute invoices covering the same bearing the
3585		-	number of such certificate. Upon completion of the project the
3586		-	contractor shall furnish to such organization concerned a sworn
3587		-	statement, on a form to be provided by the director of taxation, that all
3588		-	purchases so made were entitled to exemption under this subsection.
3589		-	All invoices shall be held by the contractor for a period of five years
3590		-	and shall be subject to audit by the director of taxation. If any materials
3591		-	purchased under such a certificate are found not to have been
3592		-	incorporated in the building or other project or not to have been
3593		-	returned for credit or the sales or compensating tax otherwise imposed
3594		-	upon such materials that will not be so incorporated in the building or
3595		-	other project reported and paid by such contractor to the director of
3596		-	taxation not later than the 20
3597		-	th
3598		-	day of the month following the close of
3599		-	the month in which it shall be determined that such materials will not
3600		-	be used for the purpose for which such certificate was issued, such
3601		-	organization concerned shall be liable for tax on all materials purchased
3602		-	for the project, and upon payment thereof it may recover the same from
3603		-	the contractor together with reasonable attorney fees. Any contractor or
3604		-	any agent, employee or subcontractor thereof, who shall use or
3605		-	otherwise dispose of any materials purchased under such a certificate
3606		-	for any purpose other than that for which such a certificate is issued
3607		-	without the payment of the sales or compensating tax otherwise
3608		-	imposed upon such materials, shall be guilty of a misdemeanor and,
3609		-	upon conviction therefor, shall be subject to the penalties provided for
3610		-	in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and
3611		-	after July 1, 1998, but prior to the effective date of this act upon the
3612		-	gross receipts received from any sale exempted by the amendatory
3613		-	provisions of this subsection shall be refunded. Each claim for a sales
3614		-	tax refund shall be verified and submitted to the director of taxation
3615		-	upon forms furnished by the director and shall be accompanied by any
3616		-	additional documentation required by the director. The director shall SENATE BILL No. 27—page 62
3617		-	review each claim and shall refund that amount of sales tax paid as
3618		-	determined under the provisions of this subsection. All refunds shall be
3619		-	paid from the sales tax refund fund upon warrants of the director of
3620		-	accounts and reports pursuant to vouchers approved by the director or
3621		-	the director's designee;
3622		-	(bbb) all sales of food for human consumption by an organization
3623		-	that is exempt from federal income taxation pursuant to section 501(c)
3624		-	(3) of the federal internal revenue code of 1986, pursuant to a food
3625		-	distribution program that offers such food at a price below cost in
3626		-	exchange for the performance of community service by the purchaser
3627		-	thereof;
3628		-	(ccc) on and after July 1, 1999, all sales of tangible personal
3629		-	property and services purchased by a primary care clinic or health
3630		-	center the primary purpose of which is to provide services to medically
3631		-	underserved individuals and families, and that is exempt from federal
3632		-	income taxation pursuant to section 501(c)(3) of the federal internal
3633		-	revenue code, and all sales of tangible personal property or services
3634		-	purchased by a contractor for the purpose of constructing, equipping,
3635		-	reconstructing, maintaining, repairing, enlarging, furnishing or
3636		-	remodeling facilities for any such clinic or center that would be exempt
3637		-	from taxation under the provisions of this section if purchased directly
3638		-	by such clinic or center, except that for taxable years commencing after
3639		-	December 31, 2013, this subsection shall not apply to any sales of such
3640		-	tangible personal property and services purchased by a primary care
3641		-	clinic or health center which performs any abortion, as defined in
3642		-	K.S.A. 65-6701, and amendments thereto. Nothing in this subsection
3643		-	shall be deemed to exempt the purchase of any construction machinery,
3644		-	equipment or tools used in the constructing, equipping, reconstructing,
3645		-	maintaining, repairing, enlarging, furnishing or remodeling facilities for
3646		-	any such clinic or center. When any such clinic or center shall contract
3647		-	for the purpose of constructing, equipping, reconstructing, maintaining,
3648		-	repairing, enlarging, furnishing or remodeling facilities, it shall obtain
3649		-	from the state and furnish to the contractor an exemption certificate for
3650		-	the project involved, and the contractor may purchase materials for
3651		-	incorporation in such project. The contractor shall furnish the number
3652		-	of such certificate to all suppliers from whom such purchases are made,
3653		-	and such suppliers shall execute invoices covering the same bearing the
3654		-	number of such certificate. Upon completion of the project the
3655		-	contractor shall furnish to such clinic or center concerned a sworn
3656		-	statement, on a form to be provided by the director of taxation, that all
3657		-	purchases so made were entitled to exemption under this subsection.
3658		-	All invoices shall be held by the contractor for a period of five years
3659		-	and shall be subject to audit by the director of taxation. If any materials
3660		-	purchased under such a certificate are found not to have been
3661		-	incorporated in the building or other project or not to have been
3662		-	returned for credit or the sales or compensating tax otherwise imposed
3663		-	upon such materials that will not be so incorporated in the building or
3664		-	other project reported and paid by such contractor to the director of
3665		-	taxation not later than the 20
3666		-	th
3667		-	day of the month following the close of
3668		-	the month in which it shall be determined that such materials will not
3669		-	be used for the purpose for which such certificate was issued, such
3670		-	clinic or center concerned shall be liable for tax on all materials
3671		-	purchased for the project, and upon payment thereof it may recover the
3672		-	same from the contractor together with reasonable attorney fees. Any
3673		-	contractor or any agent, employee or subcontractor thereof, who shall
3674		-	use or otherwise dispose of any materials purchased under such a
3675		-	certificate for any purpose other than that for which such a certificate is
3676		-	issued without the payment of the sales or compensating tax otherwise
3677		-	imposed upon such materials, shall be guilty of a misdemeanor and, SENATE BILL No. 27—page 63
3678		-	upon conviction therefor, shall be subject to the penalties provided for
3679		-	in K.S.A. 79-3615(h), and amendments thereto;
3680		-	(ddd) on and after January 1, 1999, and before January 1, 2000, all
3681		-	sales of materials and services purchased by any class II or III railroad
3682		-	as classified by the federal surface transportation board for the
3683		-	construction, renovation, repair or replacement of class II or III railroad
3684		-	track and facilities used directly in interstate commerce. In the event
3685		-	any such track or facility for which materials and services were
3686		-	purchased sales tax exempt is not operational for five years succeeding
3687		-	the allowance of such exemption, the total amount of sales tax that
3688		-	would have been payable except for the operation of this subsection
3689		-	shall be recouped in accordance with rules and regulations adopted for
3690		-	such purpose by the secretary of revenue;
3691		-	(eee) on and after January 1, 1999, and before January 1, 2001, all
3692		-	sales of materials and services purchased for the original construction,
3693		-	reconstruction, repair or replacement of grain storage facilities,
3694		-	including railroad sidings providing access thereto;
3695		-	(fff) all sales of material handling equipment, racking systems and
3696		-	other related machinery and equipment that is used for the handling,
3697		-	movement or storage of tangible personal property in a warehouse or
3698		-	distribution facility in this state; all sales of installation, repair and
3699		-	maintenance services performed on such machinery and equipment;
3700		-	and all sales of repair and replacement parts for such machinery and
3701		-	equipment. For purposes of this subsection, a warehouse or distribution
3702		-	facility means a single, fixed location that consists of buildings or
3703		-	structures in a contiguous area where storage or distribution operations
3704		-	are conducted that are separate and apart from the business' retail
3705		-	operations, if any, and that do not otherwise qualify for exemption as
3706		-	occurring at a manufacturing or processing plant or facility. Material
3707		-	handling and storage equipment shall include aeration, dust control,
3708		-	cleaning, handling and other such equipment that is used in a public
3709		-	grain warehouse or other commercial grain storage facility, whether
3710		-	used for grain handling, grain storage, grain refining or processing, or
3711		-	other grain treatment operation;
3712		-	(ggg) all sales of tangible personal property and services
3713		-	purchased by or on behalf of the Kansas academy of science, which is
3714		-	exempt from federal income taxation pursuant to section 501(c)(3) of
3715		-	the federal internal revenue code of 1986, and used solely by such
3716		-	academy for the preparation, publication and dissemination of
3717		-	education materials;
3718		-	(hhh) all sales of tangible personal property and services
3719		-	purchased by or on behalf of all domestic violence shelters that are
3720		-	member agencies of the Kansas coalition against sexual and domestic
3721		-	violence;
3722		-	(iii) all sales of personal property and services purchased by an
3723		-	organization that is exempt from federal income taxation pursuant to
3724		-	section 501(c)(3) of the federal internal revenue code of 1986, and such
3725		-	personal property and services are used by any such organization in the
3726		-	collection, storage and distribution of food products to nonprofit
3727		-	organizations that distribute such food products to persons pursuant to a
3728		-	food distribution program on a charitable basis without fee or charge,
3729		-	and all sales of tangible personal property or services purchased by a
3730		-	contractor for the purpose of constructing, equipping, reconstructing,
3731		-	maintaining, repairing, enlarging, furnishing or remodeling facilities
3732		-	used for the collection and storage of such food products for any such
3733		-	organization which is exempt from federal income taxation pursuant to
3734		-	section 501(c)(3) of the federal internal revenue code of 1986, that
3735		-	would be exempt from taxation under the provisions of this section if
3736		-	purchased directly by such organization. Nothing in this subsection SENATE BILL No. 27—page 64
3737		-	shall be deemed to exempt the purchase of any construction machinery,
3738		-	equipment or tools used in the constructing, equipping, reconstructing,
3739		-	maintaining, repairing, enlarging, furnishing or remodeling facilities for
3740		-	any such organization. When any such organization shall contract for
3741		-	the purpose of constructing, equipping, reconstructing, maintaining,
3742		-	repairing, enlarging, furnishing or remodeling facilities, it shall obtain
3743		-	from the state and furnish to the contractor an exemption certificate for
3744		-	the project involved, and the contractor may purchase materials for
3745		-	incorporation in such project. The contractor shall furnish the number
3746		-	of such certificate to all suppliers from whom such purchases are made,
3747		-	and such suppliers shall execute invoices covering the same bearing the
3748		-	number of such certificate. Upon completion of the project the
3749		-	contractor shall furnish to such organization concerned a sworn
3750		-	statement, on a form to be provided by the director of taxation, that all
3751		-	purchases so made were entitled to exemption under this subsection.
3752		-	All invoices shall be held by the contractor for a period of five years
3753		-	and shall be subject to audit by the director of taxation. If any materials
3754		-	purchased under such a certificate are found not to have been
3755		-	incorporated in such facilities or not to have been returned for credit or
3756		-	the sales or compensating tax otherwise imposed upon such materials
3757		-	that will not be so incorporated in such facilities reported and paid by
3758		-	such contractor to the director of taxation not later than the 20
3759		-	th
3760		-	day of
3761		-	the month following the close of the month in which it shall be
3762		-	determined that such materials will not be used for the purpose for
3763		-	which such certificate was issued, such organization concerned shall be
3764		-	liable for tax on all materials purchased for the project, and upon
3765		-	payment thereof it may recover the same from the contractor together
3766		-	with reasonable attorney fees. Any contractor or any agent, employee
3767		-	or subcontractor thereof, who shall use or otherwise dispose of any
3768		-	materials purchased under such a certificate for any purpose other than
3769		-	that for which such a certificate is issued without the payment of the
3770		-	sales or compensating tax otherwise imposed upon such materials, shall
3771		-	be guilty of a misdemeanor and, upon conviction therefor, shall be
3772		-	subject to the penalties provided for in K.S.A. 79-3615(h), and
3773		-	amendments thereto. Sales tax paid on and after July 1, 2005, but prior
3774		-	to the effective date of this act upon the gross receipts received from
3775		-	any sale exempted by the amendatory provisions of this subsection
3776		-	shall be refunded. Each claim for a sales tax refund shall be verified
3777		-	and submitted to the director of taxation upon forms furnished by the
3778		-	director and shall be accompanied by any additional documentation
3779		-	required by the director. The director shall review each claim and shall
3780		-	refund that amount of sales tax paid as determined under the provisions
3781		-	of this subsection. All refunds shall be paid from the sales tax refund
3782		-	fund upon warrants of the director of accounts and reports pursuant to
3783		-	vouchers approved by the director or the director's designee;
3784		-	(jjj) all sales of dietary supplements dispensed pursuant to a
3785		-	prescription order by a licensed practitioner or a mid-level practitioner
3786		-	as defined by K.S.A. 65-1626, and amendments thereto. As used in this
3787		-	subsection, "dietary supplement" means any product, other than
3788		-	tobacco, intended to supplement the diet that: (1) Contains one or more
3789		-	of the following dietary ingredients: A vitamin, a mineral, an herb or
3790		-	other botanical, an amino acid, a dietary substance for use by humans
3791		-	to supplement the diet by increasing the total dietary intake or a
3792		-	concentrate, metabolite, constituent, extract or combination of any such
3793		-	ingredient; (2) is intended for ingestion in tablet, capsule, powder,
3794		-	softgel, gelcap or liquid form, or if not intended for ingestion, in such a
3795		-	form, is not represented as conventional food and is not represented for
3796		-	use as a sole item of a meal or of the diet; and (3) is required to be
3797		-	labeled as a dietary supplement, identifiable by the supplemental facts SENATE BILL No. 27—page 65
3798		-	box found on the label and as required pursuant to 21 C.F.R. § 101.36;
3799		-	(lll) all sales of tangible personal property and services purchased
3800		-	by special olympics Kansas, inc. for the purpose of providing year-
3801		-	round sports training and athletic competition in a variety of olympic-
3802		-	type sports for individuals with intellectual disabilities by giving them
3803		-	continuing opportunities to develop physical fitness, demonstrate
3804		-	courage, experience joy and participate in a sharing of gifts, skills and
3805		-	friendship with their families, other special olympics athletes and the
3806		-	community, and activities provided or sponsored by such organization,
3807		-	and all sales of tangible personal property by or on behalf of any such
3808		-	organization;
3809		-	(mmm) all sales of tangible personal property purchased by or on
3810		-	behalf of the Marillac center, inc., which is exempt from federal income
3811		-	taxation pursuant to section 501(c)(3) of the federal internal revenue
3812		-	code, for the purpose of providing psycho-social-biological and special
3813		-	education services to children, and all sales of any such property by or
3814		-	on behalf of such organization for such purpose;
3815		-	(nnn) all sales of tangible personal property and services
3816		-	purchased by the west Sedgwick county-sunrise rotary club and sunrise
3817		-	charitable fund for the purpose of constructing a boundless playground
3818		-	which is an integrated, barrier free and developmentally advantageous
3819		-	play environment for children of all abilities and disabilities;
3820		-	(ooo) all sales of tangible personal property by or on behalf of a
3821		-	public library serving the general public and supported in whole or in
3822		-	part with tax money or a not-for-profit organization whose purpose is to
3823		-	raise funds for or provide services or other benefits to any such public
3824		-	library;
3825		-	(ppp) all sales of tangible personal property and services
3826		-	purchased by or on behalf of a homeless shelter that is exempt from
3827		-	federal income taxation pursuant to section 501(c)(3) of the federal
3828		-	income tax code of 1986, and used by any such homeless shelter to
3829		-	provide emergency and transitional housing for individuals and
3830		-	families experiencing homelessness, and all sales of any such property
3831		-	by or on behalf of any such homeless shelter for any such purpose;
3832		-	(qqq) all sales of tangible personal property and services
3833		-	purchased by TLC for children and families, inc., hereinafter referred to
3834		-	as TLC, which is exempt from federal income taxation pursuant to
3835		-	section 501(c)(3) of the federal internal revenue code of 1986, and such
3836		-	property and services are used for the purpose of providing emergency
3837		-	shelter and treatment for abused and neglected children as well as
3838		-	meeting additional critical needs for children, juveniles and family, and
3839		-	all sales of any such property by or on behalf of TLC for any such
3840		-	purpose; and all sales of tangible personal property or services
3841		-	purchased by a contractor for the purpose of constructing, maintaining,
3842		-	repairing, enlarging, furnishing or remodeling facilities for the
3843		-	operation of services for TLC for any such purpose that would be
3844		-	exempt from taxation under the provisions of this section if purchased
3845		-	directly by TLC. Nothing in this subsection shall be deemed to exempt
3846		-	the purchase of any construction machinery, equipment or tools used in
3847		-	the constructing, maintaining, repairing, enlarging, furnishing or
3848		-	remodeling such facilities for TLC. When TLC contracts for the
3849		-	purpose of constructing, maintaining, repairing, enlarging, furnishing or
3850		-	remodeling such facilities, it shall obtain from the state and furnish to
3851		-	the contractor an exemption certificate for the project involved, and the
3852		-	contractor may purchase materials for incorporation in such project.
3853		-	The contractor shall furnish the number of such certificate to all
3854		-	suppliers from whom such purchases are made, and such suppliers shall
3855		-	execute invoices covering the same bearing the number of such
3856		-	certificate. Upon completion of the project the contractor shall furnish SENATE BILL No. 27—page 66
3857		-	to TLC a sworn statement, on a form to be provided by the director of
3858		-	taxation, that all purchases so made were entitled to exemption under
3859		-	this subsection. All invoices shall be held by the contractor for a period
3860		-	of five years and shall be subject to audit by the director of taxation. If
3861		-	any materials purchased under such a certificate are found not to have
3862		-	been incorporated in the building or other project or not to have been
3863		-	returned for credit or the sales or compensating tax otherwise imposed
3864		-	upon such materials that will not be so incorporated in the building or
3865		-	other project reported and paid by such contractor to the director of
3866		-	taxation not later than the 20
3867		-	th
3868		-	day of the month following the close of
3869		-	the month in which it shall be determined that such materials will not
3870		-	be used for the purpose for which such certificate was issued, TLC
3871		-	shall be liable for tax on all materials purchased for the project, and
3872		-	upon payment thereof it may recover the same from the contractor
3873		-	together with reasonable attorney fees. Any contractor or any agent,
3874		-	employee or subcontractor thereof, who shall use or otherwise dispose
3875		-	of any materials purchased under such a certificate for any purpose
3876		-	other than that for which such a certificate is issued without the
3877		-	payment of the sales or compensating tax otherwise imposed upon such
3878		-	materials, shall be guilty of a misdemeanor and, upon conviction
3879		-	therefor, shall be subject to the penalties provided for in K.S.A. 79-
3880		-	3615(h), and amendments thereto;
3881		-	(rrr) all sales of tangible personal property and services purchased
3882		-	by any county law library maintained pursuant to law and sales of
3883		-	tangible personal property and services purchased by an organization
3884		-	that would have been exempt from taxation under the provisions of this
3885		-	subsection if purchased directly by the county law library for the
3886		-	purpose of providing legal resources to attorneys, judges, students and
3887		-	the general public, and all sales of any such property by or on behalf of
3888		-	any such county law library;
3889		-	(sss) all sales of tangible personal property and services purchased
3890		-	by catholic charities or youthville, hereinafter referred to as charitable
3891		-	family providers, which is exempt from federal income taxation
3892		-	pursuant to section 501(c)(3) of the federal internal revenue code of
3893		-	1986, and which such property and services are used for the purpose of
3894		-	providing emergency shelter and treatment for abused and neglected
3895		-	children as well as meeting additional critical needs for children,
3896		-	juveniles and family, and all sales of any such property by or on behalf
3897		-	of charitable family providers for any such purpose; and all sales of
3898		-	tangible personal property or services purchased by a contractor for the
3899		-	purpose of constructing, maintaining, repairing, enlarging, furnishing or
3900		-	remodeling facilities for the operation of services for charitable family
3901		-	providers for any such purpose which would be exempt from taxation
3902		-	under the provisions of this section if purchased directly by charitable
3903		-	family providers. Nothing in this subsection shall be deemed to exempt
3904		-	the purchase of any construction machinery, equipment or tools used in
3905		-	the constructing, maintaining, repairing, enlarging, furnishing or
3906		-	remodeling such facilities for charitable family providers. When
3907		-	charitable family providers contracts for the purpose of constructing,
3908		-	maintaining, repairing, enlarging, furnishing or remodeling such
3909		-	facilities, it shall obtain from the state and furnish to the contractor an
3910		-	exemption certificate for the project involved, and the contractor may
3911		-	purchase materials for incorporation in such project. The contractor
3912		-	shall furnish the number of such certificate to all suppliers from whom
3913		-	such purchases are made, and such suppliers shall execute invoices
3914		-	covering the same bearing the number of such certificate. Upon
3915		-	completion of the project the contractor shall furnish to charitable
3916		-	family providers a sworn statement, on a form to be provided by the
3917		-	director of taxation, that all purchases so made were entitled to SENATE BILL No. 27—page 67
3918		-	exemption under this subsection. All invoices shall be held by the
3919		-	contractor for a period of five years and shall be subject to audit by the
3920		-	director of taxation. If any materials purchased under such a certificate
3921		-	are found not to have been incorporated in the building or other project
3922		-	or not to have been returned for credit or the sales or compensating tax
3923		-	otherwise imposed upon such materials that will not be so incorporated
3924		-	in the building or other project reported and paid by such contractor to
3925		-	the director of taxation not later than the 20
3926		-	th
3927		-	day of the month
3928		-	following the close of the month in which it shall be determined that
3929		-	such materials will not be used for the purpose for which such
3930		-	certificate was issued, charitable family providers shall be liable for tax
3931		-	on all materials purchased for the project, and upon payment thereof it
3932		-	may recover the same from the contractor together with reasonable
3933		-	attorney fees. Any contractor or any agent, employee or subcontractor
3934		-	thereof, who shall use or otherwise dispose of any materials purchased
3935		-	under such a certificate for any purpose other than that for which such a
3936		-	certificate is issued without the payment of the sales or compensating
3937		-	tax otherwise imposed upon such materials, shall be guilty of a
3938		-	misdemeanor and, upon conviction therefor, shall be subject to the
3939		-	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
3940		-	(ttt) all sales of tangible personal property or services purchased
3941		-	by a contractor for a project for the purpose of restoring, constructing,
3942		-	equipping, reconstructing, maintaining, repairing, enlarging, furnishing
3943		-	or remodeling a home or facility owned by a nonprofit museum that has
3944		-	been granted an exemption pursuant to subsection (qq), which such
3945		-	home or facility is located in a city that has been designated as a
3946		-	qualified hometown pursuant to the provisions of K.S.A. 75-5071 et
3947		-	seq., and amendments thereto, and which such project is related to the
3948		-	purposes of K.S.A. 75-5071 et seq., and amendments thereto, and that
3949		-	would be exempt from taxation under the provisions of this section if
3950		-	purchased directly by such nonprofit museum. Nothing in this
3951		-	subsection shall be deemed to exempt the purchase of any construction
3952		-	machinery, equipment or tools used in the restoring, constructing,
3953		-	equipping, reconstructing, maintaining, repairing, enlarging, furnishing
3954		-	or remodeling a home or facility for any such nonprofit museum. When
3955		-	any such nonprofit museum shall contract for the purpose of restoring,
3956		-	constructing, equipping, reconstructing, maintaining, repairing,
3957		-	enlarging, furnishing or remodeling a home or facility, it shall obtain
3958		-	from the state and furnish to the contractor an exemption certificate for
3959		-	the project involved, and the contractor may purchase materials for
3960		-	incorporation in such project. The contractor shall furnish the number
3961		-	of such certificates to all suppliers from whom such purchases are
3962		-	made, and such suppliers shall execute invoices covering the same
3963		-	bearing the number of such certificate. Upon completion of the project,
3964		-	the contractor shall furnish to such nonprofit museum a sworn
3965		-	statement on a form to be provided by the director of taxation that all
3966		-	purchases so made were entitled to exemption under this subsection.
3967		-	All invoices shall be held by the contractor for a period of five years
3968		-	and shall be subject to audit by the director of taxation. If any materials
3969		-	purchased under such a certificate are found not to have been
3970		-	incorporated in the building or other project or not to have been
3971		-	returned for credit or the sales or compensating tax otherwise imposed
3972		-	upon such materials that will not be so incorporated in a home or
3973		-	facility or other project reported and paid by such contractor to the
3974		-	director of taxation not later than the 20
3975		-	th
3976		-	day of the month following
3977		-	the close of the month in which it shall be determined that such
3978		-	materials will not be used for the purpose for which such certificate
3979		-	was issued, such nonprofit museum shall be liable for tax on all
3980		-	materials purchased for the project, and upon payment thereof it may SENATE BILL No. 27—page 68
3981		-	recover the same from the contractor together with reasonable attorney
3982		-	fees. Any contractor or any agent, employee or subcontractor thereof,
3983		-	who shall use or otherwise dispose of any materials purchased under
3984		-	such a certificate for any purpose other than that for which such a
3985		-	certificate is issued without the payment of the sales or compensating
3986		-	tax otherwise imposed upon such materials, shall be guilty of a
3987		-	misdemeanor and, upon conviction therefor, shall be subject to the
3988		-	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
3989		-	(uuu) all sales of tangible personal property and services
3990		-	purchased by Kansas children's service league, hereinafter referred to
3991		-	as KCSL, which is exempt from federal income taxation pursuant to
3992		-	section 501(c)(3) of the federal internal revenue code of 1986, and
3993		-	which such property and services are used for the purpose of providing
3994		-	for the prevention and treatment of child abuse and maltreatment as
3995		-	well as meeting additional critical needs for children, juveniles and
3996		-	family, and all sales of any such property by or on behalf of KCSL for
3997		-	any such purpose; and all sales of tangible personal property or services
3998		-	purchased by a contractor for the purpose of constructing, maintaining,
3999		-	repairing, enlarging, furnishing or remodeling facilities for the
4000		-	operation of services for KCSL for any such purpose that would be
4001		-	exempt from taxation under the provisions of this section if purchased
4002		-	directly by KCSL. Nothing in this subsection shall be deemed to
4003		-	exempt the purchase of any construction machinery, equipment or tools
4004		-	used in the constructing, maintaining, repairing, enlarging, furnishing
4005		-	or remodeling such facilities for KCSL. When KCSL contracts for the
4006		-	purpose of constructing, maintaining, repairing, enlarging, furnishing or
4007		-	remodeling such facilities, it shall obtain from the state and furnish to
4008		-	the contractor an exemption certificate for the project involved, and the
4009		-	contractor may purchase materials for incorporation in such project.
4010		-	The contractor shall furnish the number of such certificate to all
4011		-	suppliers from whom such purchases are made, and such suppliers shall
4012		-	execute invoices covering the same bearing the number of such
4013		-	certificate. Upon completion of the project the contractor shall furnish
4014		-	to KCSL a sworn statement, on a form to be provided by the director of
4015		-	taxation, that all purchases so made were entitled to exemption under
4016		-	this subsection. All invoices shall be held by the contractor for a period
4017		-	of five years and shall be subject to audit by the director of taxation. If
4018		-	any materials purchased under such a certificate are found not to have
4019		-	been incorporated in the building or other project or not to have been
4020		-	returned for credit or the sales or compensating tax otherwise imposed
4021		-	upon such materials that will not be so incorporated in the building or
4022		-	other project reported and paid by such contractor to the director of
4023		-	taxation not later than the 20
4024		-	th
4025		-	day of the month following the close of
4026		-	the month in which it shall be determined that such materials will not
4027		-	be used for the purpose for which such certificate was issued, KCSL
4028		-	shall be liable for tax on all materials purchased for the project, and
4029		-	upon payment thereof it may recover the same from the contractor
4030		-	together with reasonable attorney fees. Any contractor or any agent,
4031		-	employee or subcontractor thereof, who shall use or otherwise dispose
4032		-	of any materials purchased under such a certificate for any purpose
4033		-	other than that for which such a certificate is issued without the
4034		-	payment of the sales or compensating tax otherwise imposed upon such
4035		-	materials, shall be guilty of a misdemeanor and, upon conviction
4036		-	therefor, shall be subject to the penalties provided for in K.S.A. 79-
4037		-	3615(h), and amendments thereto;
4038		-	(vvv) all sales of tangible personal property or services, including
4039		-	the renting and leasing of tangible personal property or services,
4040		-	purchased by jazz in the woods, inc., a Kansas corporation that is
4041		-	exempt from federal income taxation pursuant to section 501(c)(3) of SENATE BILL No. 27—page 69
4042		-	the federal internal revenue code, for the purpose of providing jazz in
4043		-	the woods, an event benefiting children-in-need and other nonprofit
4044		-	charities assisting such children, and all sales of any such property by
4045		-	or on behalf of such organization for such purpose;
4046		-	(www) all sales of tangible personal property purchased by or on
4047		-	behalf of the Frontenac education foundation, which is exempt from
4048		-	federal income taxation pursuant to section 501(c)(3) of the federal
4049		-	internal revenue code, for the purpose of providing education support
4050		-	for students, and all sales of any such property by or on behalf of such
4051		-	organization for such purpose;
4052		-	(xxx) all sales of personal property and services purchased by the
4053		-	booth theatre foundation, inc., an organization, which is exempt from
4054		-	federal income taxation pursuant to section 501(c)(3) of the federal
4055		-	internal revenue code of 1986, and which such personal property and
4056		-	services are used by any such organization in the constructing,
4057		-	equipping, reconstructing, maintaining, repairing, enlarging, furnishing
4058		-	or remodeling of the booth theatre, and all sales of tangible personal
4059		-	property or services purchased by a contractor for the purpose of
4060		-	constructing, equipping, reconstructing, maintaining, repairing,
4061		-	enlarging, furnishing or remodeling the booth theatre for such
4062		-	organization, that would be exempt from taxation under the provisions
4063		-	of this section if purchased directly by such organization. Nothing in
4064		-	this subsection shall be deemed to exempt the purchase of any
4065		-	construction machinery, equipment or tools used in the constructing,
4066		-	equipping, reconstructing, maintaining, repairing, enlarging, furnishing
4067		-	or remodeling facilities for any such organization. When any such
4068		-	organization shall contract for the purpose of constructing, equipping,
4069		-	reconstructing, maintaining, repairing, enlarging, furnishing or
4070		-	remodeling facilities, it shall obtain from the state and furnish to the
4071		-	contractor an exemption certificate for the project involved, and the
4072		-	contractor may purchase materials for incorporation in such project.
4073		-	The contractor shall furnish the number of such certificate to all
4074		-	suppliers from whom such purchases are made, and such suppliers shall
4075		-	execute invoices covering the same bearing the number of such
4076		-	certificate. Upon completion of the project the contractor shall furnish
4077		-	to such organization concerned a sworn statement, on a form to be
4078		-	provided by the director of taxation, that all purchases so made were
4079		-	entitled to exemption under this subsection. All invoices shall be held
4080		-	by the contractor for a period of five years and shall be subject to audit
4081		-	by the director of taxation. If any materials purchased under such a
4082		-	certificate are found not to have been incorporated in such facilities or
4083		-	not to have been returned for credit or the sales or compensating tax
4084		-	otherwise imposed upon such materials that will not be so incorporated
4085		-	in such facilities reported and paid by such contractor to the director of
4086		-	taxation not later than the 20
4087		-	th
4088		-	day of the month following the close of
4089		-	the month in which it shall be determined that such materials will not
4090		-	be used for the purpose for which such certificate was issued, such
4091		-	organization concerned shall be liable for tax on all materials purchased
4092		-	for the project, and upon payment thereof it may recover the same from
4093		-	the contractor together with reasonable attorney fees. Any contractor or
4094		-	any agent, employee or subcontractor thereof, who shall use or
4095		-	otherwise dispose of any materials purchased under such a certificate
4096		-	for any purpose other than that for which such a certificate is issued
4097		-	without the payment of the sales or compensating tax otherwise
4098		-	imposed upon such materials, shall be guilty of a misdemeanor and,
4099		-	upon conviction therefor, shall be subject to the penalties provided for
4100		-	in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and
4101		-	after January 1, 2007, but prior to the effective date of this act upon the
4102		-	gross receipts received from any sale which would have been exempted SENATE BILL No. 27—page 70
4103		-	by the provisions of this subsection had such sale occurred after the
4104		-	effective date of this act shall be refunded. Each claim for a sales tax
4105		-	refund shall be verified and submitted to the director of taxation upon
4106		-	forms furnished by the director and shall be accompanied by any
4107		-	additional documentation required by the director. The director shall
4108		-	review each claim and shall refund that amount of sales tax paid as
4109		-	determined under the provisions of this subsection. All refunds shall be
4110		-	paid from the sales tax refund fund upon warrants of the director of
4111		-	accounts and reports pursuant to vouchers approved by the director or
4112		-	the director's designee;
4113		-	(yyy) all sales of tangible personal property and services
4114		-	purchased by TLC charities foundation, inc., hereinafter referred to as
4115		-	TLC charities, which is exempt from federal income taxation pursuant
4116		-	to section 501(c)(3) of the federal internal revenue code of 1986, and
4117		-	which such property and services are used for the purpose of
4118		-	encouraging private philanthropy to further the vision, values, and
4119		-	goals of TLC for children and families, inc.; and all sales of such
4120		-	property and services by or on behalf of TLC charities for any such
4121		-	purpose and all sales of tangible personal property or services
4122		-	purchased by a contractor for the purpose of constructing, maintaining,
4123		-	repairing, enlarging, furnishing or remodeling facilities for the
4124		-	operation of services for TLC charities for any such purpose that would
4125		-	be exempt from taxation under the provisions of this section if
4126		-	purchased directly by TLC charities. Nothing in this subsection shall be
4127		-	deemed to exempt the purchase of any construction machinery,
4128		-	equipment or tools used in the constructing, maintaining, repairing,
4129		-	enlarging, furnishing or remodeling such facilities for TLC charities.
4130		-	When TLC charities contracts for the purpose of constructing,
4131		-	maintaining, repairing, enlarging, furnishing or remodeling such
4132		-	facilities, it shall obtain from the state and furnish to the contractor an
4133		-	exemption certificate for the project involved, and the contractor may
4134		-	purchase materials for incorporation in such project. The contractor
4135		-	shall furnish the number of such certificate to all suppliers from whom
4136		-	such purchases are made, and such suppliers shall execute invoices
4137		-	covering the same bearing the number of such certificate. Upon
4138		-	completion of the project the contractor shall furnish to TLC charities a
4139		-	sworn statement, on a form to be provided by the director of taxation,
4140		-	that all purchases so made were entitled to exemption under this
4141		-	subsection. All invoices shall be held by the contractor for a period of
4142		-	five years and shall be subject to audit by the director of taxation. If any
4143		-	materials purchased under such a certificate are found not to have been
4144		-	incorporated in the building or other project or not to have been
4145		-	returned for credit or the sales or compensating tax otherwise imposed
4146		-	upon such materials that will not be incorporated into the building or
4147		-	other project reported and paid by such contractor to the director of
4148		-	taxation not later than the 20
4149		-	th
4150		-	day of the month following the close of
4151		-	the month in which it shall be determined that such materials will not
4152		-	be used for the purpose for which such certificate was issued, TLC
4153		-	charities shall be liable for tax on all materials purchased for the
4154		-	project, and upon payment thereof it may recover the same from the
4155		-	contractor together with reasonable attorney fees. Any contractor or any
4156		-	agent, employee or subcontractor thereof, who shall use or otherwise
4157		-	dispose of any materials purchased under such a certificate for any
4158		-	purpose other than that for which such a certificate is issued without the
4159		-	payment of the sales or compensating tax otherwise imposed upon such
4160		-	materials, shall be guilty of a misdemeanor and, upon conviction
4161		-	therefor, shall be subject to the penalties provided for in K.S.A. 79-
4162		-	3615(h), and amendments thereto;
4163		-	(zzz) all sales of tangible personal property purchased by the SENATE BILL No. 27—page 71
4164		-	rotary club of shawnee foundation, which is exempt from federal
4165		-	income taxation pursuant to section 501(c)(3) of the federal internal
4166		-	revenue code of 1986, as amended, used for the purpose of providing
4167		-	contributions to community service organizations and scholarships;
4168		-	(aaaa) all sales of personal property and services purchased by or
4169		-	on behalf of victory in the valley, inc., which is exempt from federal
4170		-	income taxation pursuant to section 501(c)(3) of the federal internal
4171		-	revenue code, for the purpose of providing a cancer support group and
4172		-	services for persons with cancer, and all sales of any such property by
4173		-	or on behalf of any such organization for any such purpose;
4174		-	(bbbb) all sales of entry or participation fees, charges or tickets by
4175		-	Guadalupe health foundation, which is exempt from federal income
4176		-	taxation pursuant to section 501(c)(3) of the federal internal revenue
4177		-	code, for such organization's annual fundraising event which purpose is
4178		-	to provide health care services for uninsured workers;
4179		-	(cccc) all sales of tangible personal property or services purchased
4180		-	by or on behalf of wayside waifs, inc., which is exempt from federal
4181		-	income taxation pursuant to section 501(c)(3) of the federal internal
4182		-	revenue code, for the purpose of providing such organization's annual
4183		-	fundraiser, an event whose purpose is to support the care of homeless
4184		-	and abandoned animals, animal adoption efforts, education programs
4185		-	for children and efforts to reduce animal over-population and animal
4186		-	welfare services, and all sales of any such property, including entry or
4187		-	participation fees or charges, by or on behalf of such organization for
4188		-	such purpose;
4189		-	(dddd) all sales of tangible personal property or services
4190		-	purchased by or on behalf of goodwill industries or Easter seals of
4191		-	Kansas, inc., both of which are exempt from federal income taxation
4192		-	pursuant to section 501(c)(3) of the federal internal revenue code, for
4193		-	the purpose of providing education, training and employment
4194		-	opportunities for people with disabilities and other barriers to
4195		-	employment;
4196		-	(eeee) all sales of tangible personal property or services purchased
4197		-	by or on behalf of all American beef battalion, inc., which is exempt
4198		-	from federal income taxation pursuant to section 501(c)(3) of the
4199		-	federal internal revenue code, for the purpose of educating, promoting
4200		-	and participating as a contact group through the beef cattle industry in
4201		-	order to carry out such projects that provide support and morale to
4202		-	members of the United States armed forces and military services;
4203		-	(ffff) all sales of tangible personal property and services purchased
4204		-	by sheltered living, inc., which is exempt from federal income taxation
4205		-	pursuant to section 501(c)(3) of the federal internal revenue code of
4206		-	1986, and which such property and services are used for the purpose of
4207		-	providing residential and day services for people with developmental
4208		-	disabilities or intellectual disability, or both, and all sales of any such
4209		-	property by or on behalf of sheltered living, inc., for any such purpose;
4210		-	and all sales of tangible personal property or services purchased by a
4211		-	contractor for the purpose of rehabilitating, constructing, maintaining,
4212		-	repairing, enlarging, furnishing or remodeling homes and facilities for
4213		-	sheltered living, inc., for any such purpose that would be exempt from
4214		-	taxation under the provisions of this section if purchased directly by
4215		-	sheltered living, inc. Nothing in this subsection shall be deemed to
4216		-	exempt the purchase of any construction machinery, equipment or tools
4217		-	used in the constructing, maintaining, repairing, enlarging, furnishing
4218		-	or remodeling such homes and facilities for sheltered living, inc. When
4219		-	sheltered living, inc., contracts for the purpose of rehabilitating,
4220		-	constructing, maintaining, repairing, enlarging, furnishing or
4221		-	remodeling such homes and facilities, it shall obtain from the state and
4222		-	furnish to the contractor an exemption certificate for the project SENATE BILL No. 27—page 72
4223		-	involved, and the contractor may purchase materials for incorporation
4224		-	in such project. The contractor shall furnish the number of such
4225		-	certificate to all suppliers from whom such purchases are made, and
4226		-	such suppliers shall execute invoices covering the same bearing the
4227		-	number of such certificate. Upon completion of the project the
4228		-	contractor shall furnish to sheltered living, inc., a sworn statement, on a
4229		-	form to be provided by the director of taxation, that all purchases so
4230		-	made were entitled to exemption under this subsection. All invoices
4231		-	shall be held by the contractor for a period of five years and shall be
4232		-	subject to audit by the director of taxation. If any materials purchased
4233		-	under such a certificate are found not to have been incorporated in the
4234		-	building or other project or not to have been returned for credit or the
4235		-	sales or compensating tax otherwise imposed upon such materials that
4236		-	will not be so incorporated in the building or other project reported and
4237		-	paid by such contractor to the director of taxation not later than the 20
4238		-	th
4239		-	day of the month following the close of the month in which it shall be
4240		-	determined that such materials will not be used for the purpose for
4241		-	which such certificate was issued, sheltered living, inc., shall be liable
4242		-	for tax on all materials purchased for the project, and upon payment
4243		-	thereof it may recover the same from the contractor together with
4244		-	reasonable attorney fees. Any contractor or any agent, employee or
4245		-	subcontractor thereof, who shall use or otherwise dispose of any
4246		-	materials purchased under such a certificate for any purpose other than
4247		-	that for which such a certificate is issued without the payment of the
4248		-	sales or compensating tax otherwise imposed upon such materials, shall
4249		-	be guilty of a misdemeanor and, upon conviction therefor, shall be
4250		-	subject to the penalties provided for in K.S.A. 79-3615(h), and
4251		-	amendments thereto;
4252		-	(gggg) all sales of game birds for which the primary purpose is
4253		-	use in hunting;
4254		-	(hhhh) all sales of tangible personal property or services
4255		-	purchased on or after July 1, 2014, for the purpose of and in
4256		-	conjunction with constructing, reconstructing, enlarging or remodeling
4257		-	a business identified under the North American industry classification
4258		-	system (NAICS) subsectors 1123, 1124, 112112, 112120 or 112210,
4259		-	and the sale and installation of machinery and equipment purchased for
4260		-	installation at any such business. The exemption provided in this
4261		-	subsection shall not apply to projects that have actual total costs less
4262		-	than $50,000. When a person contracts for the construction,
4263		-	reconstruction, enlargement or remodeling of any such business, such
4264		-	person shall obtain from the state and furnish to the contractor an
4265		-	exemption certificate for the project involved, and the contractor may
4266		-	purchase materials, machinery and equipment for incorporation in such
4267		-	project. The contractor shall furnish the number of such certificates to
4268		-	all suppliers from whom such purchases are made, and such suppliers
4269		-	shall execute invoices covering the same bearing the number of such
4270		-	certificate. Upon completion of the project, the contractor shall furnish
4271		-	to the owner of the business a sworn statement, on a form to be
4272		-	provided by the director of taxation, that all purchases so made were
4273		-	entitled to exemption under this subsection. All invoices shall be held
4274		-	by the contractor for a period of five years and shall be subject to audit
4275		-	by the director of taxation. Any contractor or any agent, employee or
4276		-	subcontractor of the contractor, who shall use or otherwise dispose of
4277		-	any materials, machinery or equipment purchased under such a
4278		-	certificate for any purpose other than that for which such a certificate is
4279		-	issued without the payment of the sales or compensating tax otherwise
4280		-	imposed thereon, shall be guilty of a misdemeanor and, upon
4281		-	conviction therefor, shall be subject to the penalties provided for in
4282		-	K.S.A. 79-3615(h), and amendments thereto; SENATE BILL No. 27—page 73
4283		-	(iiii) all sales of tangible personal property or services purchased
4284		-	by a contractor for the purpose of constructing, maintaining, repairing,
4285		-	enlarging, furnishing or remodeling facilities for the operation of
4286		-	services for Wichita children's home for any such purpose that would
4287		-	be exempt from taxation under the provisions of this section if
4288		-	purchased directly by Wichita children's home. Nothing in this
4289		-	subsection shall be deemed to exempt the purchase of any construction
4290		-	machinery, equipment or tools used in the constructing, maintaining,
4291		-	repairing, enlarging, furnishing or remodeling such facilities for
4292		-	Wichita children's home. When Wichita children's home contracts for
4293		-	the purpose of constructing, maintaining, repairing, enlarging,
4294		-	furnishing or remodeling such facilities, it shall obtain from the state
4295		-	and furnish to the contractor an exemption certificate for the project
4296		-	involved, and the contractor may purchase materials for incorporation
4297		-	in such project. The contractor shall furnish the number of such
4298		-	certificate to all suppliers from whom such purchases are made, and
4299		-	such suppliers shall execute invoices covering the same bearing the
4300		-	number of such certificate. Upon completion of the project, the
4301		-	contractor shall furnish to Wichita children's home a sworn statement,
4302		-	on a form to be provided by the director of taxation, that all purchases
4303		-	so made were entitled to exemption under this subsection. All invoices
4304		-	shall be held by the contractor for a period of five years and shall be
4305		-	subject to audit by the director of taxation. If any materials purchased
4306		-	under such a certificate are found not to have been incorporated in the
4307		-	building or other project or not to have been returned for credit or the
4308		-	sales or compensating tax otherwise imposed upon such materials that
4309		-	will not be so incorporated in the building or other project reported and
4310		-	paid by such contractor to the director of taxation not later than the 20
4311		-	th
4312		-	day of the month following the close of the month in which it shall be
4313		-	determined that such materials will not be used for the purpose for
4314		-	which such certificate was issued, Wichita children's home shall be
4315		-	liable for the tax on all materials purchased for the project, and upon
4316		-	payment, it may recover the same from the contractor together with
4317		-	reasonable attorney fees. Any contractor or any agent, employee or
4318		-	subcontractor, who shall use or otherwise dispose of any materials
4319		-	purchased under such a certificate for any purpose other than that for
4320		-	which such a certificate is issued without the payment of the sales or
4321		-	compensating tax otherwise imposed upon such materials, shall be
4322		-	guilty of a misdemeanor and, upon conviction, shall be subject to the
4323		-	penalties provided for in K.S.A. 79-3615(h), and amendments thereto;
4324		-	(jjjj) all sales of tangible personal property or services purchased
4325		-	by or on behalf of the beacon, inc., that is exempt from federal income
4326		-	taxation pursuant to section 501(c)(3) of the federal internal revenue
4327		-	code, for the purpose of providing those desiring help with food,
4328		-	shelter, clothing and other necessities of life during times of special
4329		-	need;
4330		-	(kkkk) all sales of tangible personal property and services
4331		-	purchased by or on behalf of reaching out from within, inc., which is
4332		-	exempt from federal income taxation pursuant to section 501(c)(3) of
4333		-	the federal internal revenue code, for the purpose of sponsoring self-
4334		-	help programs for incarcerated persons that will enable such
4335		-	incarcerated persons to become role models for non-violence while in
4336		-	correctional facilities and productive family members and citizens upon
4337		-	return to the community;
4338		-	(llll) all sales of tangible personal property and services purchased
4339		-	by Gove county healthcare endowment foundation, inc., which is
4340		-	exempt from federal income taxation pursuant to section 501(c)(3) of
4341		-	the federal internal revenue code of 1986, and which such property and
4342		-	services are used for the purpose of constructing and equipping an SENATE BILL No. 27—page 74
4343		-	airport in Quinter, Kansas, and all sales of tangible personal property or
4344		-	services purchased by a contractor for the purpose of constructing and
4345		-	equipping an airport in Quinter, Kansas, for such organization, that
4346		-	would be exempt from taxation under the provisions of this section if
4347		-	purchased directly by such organization. Nothing in this subsection
4348		-	shall be deemed to exempt the purchase of any construction machinery,
4349		-	equipment or tools used in the constructing or equipping of facilities for
4350		-	such organization. When such organization shall contract for the
4351		-	purpose of constructing or equipping an airport in Quinter, Kansas, it
4352		-	shall obtain from the state and furnish to the contractor an exemption
4353		-	certificate for the project involved, and the contractor may purchase
4354		-	materials for incorporation in such project. The contractor shall furnish
4355		-	the number of such certificate to all suppliers from whom such
4356		-	purchases are made, and such suppliers shall execute invoices covering
4357		-	the same bearing the number of such certificate. Upon completion of
4358		-	the project, the contractor shall furnish to such organization concerned
4359		-	a sworn statement, on a form to be provided by the director of taxation,
4360		-	that all purchases so made were entitled to exemption under this
4361		-	subsection. All invoices shall be held by the contractor for a period of
4362		-	five years and shall be subject to audit by the director of taxation. If any
4363		-	materials purchased under such a certificate are found not to have been
4364		-	incorporated in such facilities or not to have been returned for credit or
4365		-	the sales or compensating tax otherwise imposed upon such materials
4366		-	that will not be so incorporated in such facilities reported and paid by
4367		-	such contractor to the director of taxation no later than the 20
4368		-	th
4369		-	day of
4370		-	the month following the close of the month in which it shall be
4371		-	determined that such materials will not be used for the purpose for
4372		-	which such certificate was issued, such organization concerned shall be
4373		-	liable for tax on all materials purchased for the project, and upon
4374		-	payment thereof it may recover the same from the contractor together
4375		-	with reasonable attorney fees. Any contractor or any agent, employee
4376		-	or subcontractor thereof, who purchased under such a certificate for
4377		-	any purpose other than that for which such a certificate is issued
4378		-	without the payment of the sales or compensating tax otherwise
4379		-	imposed upon such materials, shall be guilty of a misdemeanor and,
4380		-	upon conviction therefor, shall be subject to the penalties provided for
4381		-	in K.S.A. 79-3615(h), and amendments thereto. The provisions of this
4382		-	subsection shall expire and have no effect on and after July 1, 2019;
4383		-	(mmmm) all sales of gold or silver coins; and palladium,
4384		-	platinum, gold or silver bullion. For the purposes of this subsection,
4385		-	"bullion" means bars, ingots or commemorative medallions of gold,
4386		-	silver, platinum, palladium, or a combination thereof, for which the
4387		-	value of the metal depends on its content and not the form;
4388		-	(nnnn) all sales of tangible personal property or services
4389		-	purchased by friends of hospice of Jefferson county, an organization
4390		-	that is exempt from federal income taxation pursuant to section 501(c)
4391		-	(3) of the federal internal revenue code of 1986, for the purpose of
4392		-	providing support to the Jefferson county hospice agency in end-of-life
4393		-	care of Jefferson county families, friends and neighbors, and all sales of
4394		-	entry or participation fees, charges or tickets by friends of hospice of
4395		-	Jefferson county for such organization's fundraising event for such
4396		-	purpose;
4397		-	(oooo) all sales of tangible personal property or services
4398		-	purchased for the purpose of and in conjunction with constructing,
4399		-	reconstructing, enlarging or remodeling a qualified business facility by
4400		-	a qualified firm or qualified supplier that meets the requirements
4401		-	established in K.S.A. 2023 Supp. 74-50,312 and 74-50,319, and
4402		-	amendments thereto, and that has been approved for a project
4403		-	exemption certificate by the secretary of commerce, and the sale and SENATE BILL No. 27—page 75
4404		-	installation of machinery and equipment purchased by such qualified
4405		-	firm or qualified supplier for installation at any such qualified business
4406		-	facility. When a person shall contract for the construction,
4407		-	reconstruction, enlargement or remodeling of any such qualified
4408		-	business facility, such person shall obtain from the state and furnish to
4409		-	the contractor an exemption certificate for the project involved, and the
4410		-	contractor may purchase materials, machinery and equipment for
4411		-	incorporation in such project. The contractor shall furnish the number
4412		-	of such certificates to all suppliers from whom such purchases are
4413		-	made, and such suppliers shall execute invoices covering the same
4414		-	bearing the number of such certificate. Upon completion of the project,
4415		-	the contractor shall furnish to the owner of the qualified firm or
4416		-	qualified supplier a sworn statement, on a form to be provided by the
4417		-	director of taxation, that all purchases so made were entitled to
4418		-	exemption under this subsection. All invoices shall be held by the
4419		-	contractor for a period of five years and shall be subject to audit by the
4420		-	director of taxation. Any contractor or any agent, employee or
4421		-	subcontractor thereof who shall use or otherwise dispose of any
4422		-	materials, machinery or equipment purchased under such a certificate
4423		-	for any purpose other than that for which such a certificate is issued
4424		-	without the payment of the sales or compensating tax otherwise
4425		-	imposed thereon, shall be guilty of a misdemeanor and, upon
4426		-	conviction therefor, shall be subject to the penalties provided for in
4427		-	K.S.A. 79-3615(h), and amendments thereto. As used in this
4428		-	subsection, "qualified business facility," "qualified firm" and "qualified
4429		-	supplier" mean the same as defined in K.S.A. 2023 Supp. 74-50,311,
4430		-	and amendments thereto;
4431		-	(pppp) (1) all sales of tangible personal property or services
4432		-	purchased by a not-for-profit corporation that is designated as an area
4433		-	agency on aging by the secretary for aging and disabilities services and
4434		-	is exempt from federal income taxation pursuant to section 501(c)(3) of
4435		-	the federal internal revenue code for the purpose of coordinating and
4436		-	providing seniors and those living with disabilities with services that
4437		-	promote person-centered care, including home-delivered meals,
4438		-	congregate meal settings, long-term case management, transportation,
4439		-	information, assistance and other preventative and intervention services
4440		-	to help service recipients remain in their homes and communities or for
4441		-	the purpose of constructing, equipping, reconstructing, maintaining,
4442		-	repairing, enlarging, furnishing or remodeling facilities for such area
4443		-	agency on aging; and
4444		-	(2) all sales of tangible personal property or services purchased by
4445		-	a contractor for the purpose of constructing, equipping, reconstructing,
4446		-	maintaining, repairing, enlarging, furnishing or remodeling facilities for
4447		-	an area agency on aging that would be exempt from taxation under the
4448		-	provisions of this section if purchased directly by such area agency on
4449		-	aging. Nothing in this paragraph shall be deemed to exempt the
4450		-	purchase of any construction machinery, equipment or tools used in the
4451		-	constructing, equipping, reconstructing, maintaining, repairing,
4452		-	enlarging, furnishing or remodeling facilities for an area agency on
4453		-	aging. When an area agency on aging contracts for the purpose of
4454		-	constructing, equipping, reconstructing, maintaining, repairing,
4455		-	enlarging, furnishing or remodeling facilities, it shall obtain from the
4456		-	state and furnish to the contractor an exemption certificate for the
4457		-	project involved, and such contractor may purchase materials for
4458		-	incorporation in such project. The contractor shall furnish the number
4459		-	of such certificate to all suppliers from whom such purchases are made,
4460		-	and such suppliers shall execute invoices covering the same bearing the
4461		-	number of such certificate. Upon completion of the project, the
4462		-	contractor shall furnish to such area agency on aging a sworn SENATE BILL No. 27—page 76
4463		-	statement, on a form to be provided by the director of taxation, that all
4464		-	purchases so made were entitled to exemption under this subsection.
4465		-	All invoices shall be held by the contractor for a period of five years
4466		-	and shall be subject to audit by the director of taxation. If any materials
4467		-	purchased under such a certificate are found not to have been
4468		-	incorporated in the building or other project or not to have been
4469		-	returned for credit or the sales or compensating tax otherwise imposed
4470		-	upon such materials that will not be so incorporated in the building or
4471		-	other project reported and paid by such contractor to the director of
4472		-	taxation not later than the 20
4473		-	th
4474		-	day of the month following the close of
4475		-	the month in which it shall be determined that such materials will not
4476		-	be used for the purpose for which such certificate was issued, the area
4477		-	agency on aging concerned shall be liable for tax on all materials
4478		-	purchased for the project, and upon payment thereof, the area agency
4479		-	on aging may recover the same from the contractor together with
4480		-	reasonable attorney fees. Any contractor or any agent, employee or
4481		-	subcontractor thereof who shall use or otherwise dispose of any
4482		-	materials purchased under such a certificate for any purpose other than
4483		-	that for which such a certificate is issued without the payment of the
4484		-	sales or compensating tax otherwise imposed upon such materials shall
4485		-	be guilty of a misdemeanor and, upon conviction therefor, shall be
4486		-	subject to the penalties provided for in K.S.A. 79-3615(h), and
4487		-	amendments thereto;
4488		-	(qqqq) all sales of tangible personal property or services
4489		-	purchased by Kansas suicide prevention HQ, inc., an organization that
4490		-	is exempt from federal income taxation pursuant to section 501(c)(3) of
4491		-	the federal internal revenue code of 1986, for the purpose of bringing
4492		-	suicide prevention training and awareness to communities across the
4493		-	state;
4494		-	(rrrr) all sales of the services of slaughtering, butchering, custom
4495		-	cutting, dressing, processing and packaging of an animal for human
4496		-	consumption when the animal is delivered or furnished by a customer
4497		-	that owns the animal and such meat or poultry is for use or
4498		-	consumption by such customer;
4499		-	(ssss) all sales of tangible personal property or services purchased
4500		-	by or on behalf of doorstep inc., an organization that is exempt from
4501		-	federal income taxation pursuant to section 501(c)(3) of the federal
4502		-	internal revenue code of 1986, for the purpose of providing short-term
4503		-	emergency aid to families and individuals in need, including assistance
4504		-	with food, clothing, rent, prescription medications, transportation and
4505		-	utilities, and providing information on services to promote long-term
4506		-	self-sufficiency;
4507		-	(tttt) on and after January 1, 2024, all sales of tangible personal
4508		-	property or services purchased by exploration place, inc., an
4509		-	organization that is exempt from federal income taxation pursuant to
4510		-	section 501(c)(3) of the federal internal revenue code, and which such
4511		-	property and services are used for the purpose of constructing,
4512		-	remodeling, furnishing or equipping a riverfront amphitheater, a
4513		-	destination playscape, an education center and indoor renovations at
4514		-	exploration place in Wichita, Kansas, all sales of tangible personal
4515		-	property or services purchased by Kansas children's discovery center
4516		-	inc. in Topeka, Kansas, and which such property and services are used
4517		-	for the purpose of constructing, remodeling, furnishing or equipping
4518		-	projects that include indoor-outdoor classrooms, an expanded multi-
4519		-	media gallery, a workshop and loading dock and safety upgrades such
4520		-	as a tornado shelter, lactation room, first aid room and sensory room
4521		-	and all sales of tangible personal property or services purchased by a
4522		-	contractor for the purpose of constructing, remodeling, furnishing or
4523		-	equipping such projects, for such organizations, that would be exempt SENATE BILL No. 27—page 77
4524		-	from taxation under the provisions of this section if purchased directly
4525		-	by such organizations. Nothing in this subsection shall be deemed to
4526		-	exempt the purchase of any construction machinery, equipment or tools
4527		-	used in the constructing, remodeling, furnishing or equipping of
4528		-	facilities for such organization. When such organization shall contract
4529		-	for the purpose of constructing, remodeling, furnishing or equipping
4530		-	such projects, it shall obtain from the state and furnish to the contractor
4531		-	an exemption certificate for the project involved, and the contractor
4532		-	may purchase materials for incorporation in such project. The
4533		-	contractor shall furnish the number of such certificate to all suppliers
4534		-	from whom such purchases are made, and such suppliers shall execute
4535		-	invoices covering the same bearing the number of such certificate.
4536		-	Upon completion of the project, the contractor shall furnish to such
4537		-	organization a sworn statement, on a form to be provided by the
4538		-	director of taxation, that all purchases so made were entitled to
4539		-	exemption under this subsection. All invoices shall be held by the
4540		-	contractor for a period of five years and shall be subject to audit by the
4541		-	director of taxation. If any materials purchased under such a certificate
4542		-	are found not to have been incorporated in such facilities or not to have
4543		-	been returned for credit or the sales or compensating tax otherwise
4544		-	imposed upon such materials that will not be so incorporated in such
4545		-	facilities reported and paid by such contractor to the director of taxation
4546		-	no later than the 20
4547		-	th
4548		-	day of the month following the close of the month
4549		-	in which it shall be determined that such materials will not be used for
4550		-	the purpose for which such certificate was issued, such organization
4551		-	shall be liable for tax on all materials purchased for the project, and
4552		-	upon payment thereof may recover the same from the contractor
4553		-	together with reasonable attorney fees. Any contractor or agent,
4554		-	employee or subcontractor thereof, who purchased under such a
4555		-	certificate for any purpose other than that for which such a certificate is
4556		-	issued without the payment of the sales or compensating tax otherwise
4557		-	imposed upon such materials, shall be guilty of a misdemeanor and,
4558		-	upon conviction therefor, shall be subject to the penalties provided for
4559		-	in K.S.A. 79-3615(h), and amendments thereto. Sales tax paid on and
4560		-	after January 1, 2024, but prior to the effective date of this act, upon the
4561		-	gross receipts received from any sale exempted by the amendatory
4562		-	provisions of this subsection shall be refunded. Each claim for a sales
4563		-	tax refund shall be verified and submitted to the director of taxation
4564		-	upon forms furnished by the director and shall be accompanied by any
4565		-	additional documentation required by the director. The director shall
4566		-	review each claim and shall refund that amount of sales tax paid as
4567		-	determined under the provisions of this subsection. All refunds shall be
4568		-	paid from the sales tax refund fund upon warrants of the director of
4569		-	accounts and reports pursuant to vouchers approved by the director or
4570		-	the director's designee. The provisions of this subsection shall expire
4571		-	and have no effect on and after December 31, 2030;
4572		-	(uuuu) (1) (A) all sales of equipment, machinery, software,
4573		-	ancillary components, appurtenances, accessories or other
4574		-	infrastructure purchased for use in the provision of communications
4575		-	services; and
4576		-	(B) all services purchased by a provider in the provision of the
4577		-	communications service used in the repair, maintenance or installation
4578		-	in such communications service.
4579		-	(2) As used in this subsection:
4580		-	(A) "Communications service" means internet access service,
4581		-	telecommunications service, video service or any combination thereof.
4582		-	(B) "Equipment, machinery, software, ancillary components,
4583		-	appurtenances, accessories or other infrastructure" includes, but is not
4584		-	limited to: SENATE BILL No. 27—page 78
4585		-	(i) Wires, cables, fiber, conduits, antennas, poles, switches,
4586		-	routers, amplifiers, rectifiers, repeaters, receivers, multiplexers,
4587		-	duplexers, transmitters, circuit cards, insulating and protective
4588		-	materials and cases, power equipment, backup power equipment,
4589		-	diagnostic equipment, storage devices, modems, cable modem
4590		-	termination systems and servers;
4591		-	(ii) other general central office or headend equipment, such as
4592		-	channel cards, frames and cabinets;
4593		-	(iii) equipment used in successor technologies, including items
4594		-	used to monitor, test, maintain, enable or facilitate qualifying
4595		-	equipment, machinery, software, ancillary components, appurtenances
4596		-	and accessories; and
4597		-	(iv) other infrastructure that is used in whole or in part to provide
4598		-	communications services, including broadcasting, distributing, sending,
4599		-	receiving, storing, transmitting, retransmitting, amplifying, switching,
4600		-	providing connectivity for or routing communications services.
4601		-	(C) "Internet access service" means the same as internet access as
4602		-	defined in section 1105 of the internet tax freedom act amendments of
4603		-	2007, public law 110-108.
4604		-	(D) "Provider" means a person or entity that sells communications
4605		-	service, including an affiliate or subsidiary.
4606		-	(E) "Telecommunications service" means the same as defined in
4607		-	K.S.A. 79-3602, and amendments thereto.
4608		-	(F) "Video service" means the same as defined in K.S.A. 12-2022,
4609		-	and amendments thereto.
4610		-	(3) The provisions of this subsection shall expire and have no
4611		-	effect on and after July 1, 2029; and
4612		-	(vvvv) (1) all sales of tangible personal property or services
4613		-	purchased by a contractor for the purpose of constructing, equipping,
4614		-	reconstructing, maintaining, repairing, enlarging, furnishing or
4615		-	remodeling a building that is operated by, or is intended to be operated
4616		-	by, the Kansas fairgrounds foundation, a not-for-profit corporation
4617		-	exempt from federal income taxation pursuant to section 501(c)(3) of
4618		-	the federal internal revenue code of 1986, and located on the grounds of
4619		-	the Kansas state fair, and such tangible personal property would be
4620		-	exempt from taxation under the provisions of this paragraph if
4621		-	purchased directly by such eligible not-for-profit corporation. Nothing
4622		-	in this subsection shall be deemed to exempt the purchase of any
4623		-	construction machinery, equipment or tools used in the constructing,
4624		-	equipping, reconstructing, maintaining, repairing, enlarging, furnishing
4625		-	or remodeling a building for such eligible not-for-profit corporation.
4626		-	When such eligible not-for-profit corporation contracts for the purpose
4627		-	of constructing, equipping, reconstructing, maintaining, repairing,
4628		-	enlarging, furnishing or remodeling a building, such corporation shall
4629		-	obtain from the state and furnish to the contractor an exemption
4630		-	certificate for the project involved, and such contractor may purchase
4631		-	materials for incorporation in such project. The contractor shall furnish
4632		-	the number of such certificate to all suppliers from whom such
4633		-	purchases are made, and such suppliers shall execute invoices covering
4634		-	such purchases bearing the number of such certificate. Upon
4635		-	completion of the project, the contractor shall furnish to such eligible
4636		-	not-for-profit corporation a sworn statement, on a form to be provided
4637		-	by the director of taxation, that all purchases so made were entitled to
4638		-	exemption under this subsection. All invoices shall be held by the
4639		-	contractor for a period of five years and shall be subject to audit by the
4640		-	director of taxation. If any materials purchased under such a certificate
4641		-	are found not to have been incorporated in the building or returned for
4642		-	credit, the contractor shall report and pay the sales or compensating tax
4643		-	to the director of taxation not later than the 20
4644		-	th
4645		-	day of the month SENATE BILL No. 27—page 79
4646		-	following the close of the month in which it is determined that such
4647		-	materials will not be used for the purpose for which such certificate
4648		-	was issued. The eligible not-for-profit corporation concerned shall be
4649		-	liable for tax on all materials purchased for the project, and upon
4650		-	payment thereof, the eligible not-for-profit corporation may recover the
4651		-	same from the contractor together with reasonable attorney fees. Any
4652		-	contractor or any agent, employee or subcontractor thereof who shall
4653		-	use or otherwise dispose of any materials purchased under such a
4654		-	certificate for any purpose other than that for which such a certificate is
4655		-	issued without the payment of the sales or compensating tax otherwise
4656		-	imposed upon such materials shall be guilty of a misdemeanor and,
4657		-	upon conviction therefor, shall be subject to the penalties provided for
4658		-	in K.S.A. 79-3615(h), and amendments thereto.
4659		-	(2) Sales tax paid on and after May 19, 2023, but prior to the
4660		-	effective date of this act upon the gross receipts received from any sale
4661		-	which would have been exempted by the provisions of this subsection
4662		-	had such sale occurred after the effective date of this act shall be
4663		-	refunded. Each claim for a sales tax refund shall be verified and
4664		-	submitted to the director of taxation upon forms furnished by the
4665		-	director and shall be accompanied by any additional documentation
4666		-	required by the director. The director shall review each claim and shall
4667		-	refund that amount of sales tax paid as determined under the provisions
4668		-	of this subsection. All refunds shall be paid from the sales tax refund
4669		-	fund upon warrants of the director of accounts and reports pursuant to
4670		-	vouchers approved by the director or the director's designee; and
4671		-	(wwww) (1) All sales of tangible personal property or services
4672		-	purchased by a pregnancy resource center or residential maternity
4673		-	facility.
4674		-	(2) As used in this subsection, "pregnancy resource center" or
4675		-	"residential maternity facility" means an organization that is:
4676		-	(A) Exempt from federal income taxation pursuant to section
4677		-	501(c)(3) of the federal internal revenue code of 1986;
4678		-	(B) a nonprofit organization organized under the laws of this
4679		-	state; and
4680		-	(C) a pregnancy resource center or residential maternity facility
4681		-	that:
4682		-	(i) Maintains a dedicated phone number for clients;
4683		-	(ii) maintains in this state its primary physical office, clinic or
4684		-	residential home that is open for clients for a minimum of 20 hours per
4685		-	week, excluding state holidays;
4686		-	(iii) offers services, at no cost to the client, for the express
4687		-	purpose of providing assistance to women in order to carry their
4688		-	pregnancy to term, encourage parenting or adoption, prevent abortion
4689		-	and promote healthy childbirth; and
4690		-	(iv) utilizes trained healthcare providers, as defined by section 8
4691		-	of 2024 House Bill No. 2465, and amendments thereto, to perform any
4692		-	available medical procedures.
4693		-	Sec. 16. K.S.A. 17-12a412, as amended by section 1 of 2024
4694		-	Senate Bill No. 405, 17-12a412, as amended by section 15 of 2024
4695		-	House Bill No. 2562, 44-706, as amended by section 12 of 2024 House
4696		-	Bill No. 2760, 44-706, as amended by section 4 of 2024 House Bill No.
4697		-	2570, 65-2401, as amended by section 1 of 2023 House Bill No. 2358,
4698		-	65-2401, as amended by section 51 of 2024 Senate Bill No. 491, 73-
4699		-	1210a, as amended by section 27 of 2024 House Bill No. 2760, and 73-
4700		-	1210a, as amended by section 63 of 2024 Senate Bill No. 491, and
4701		-	K.S.A. 2023 Supp. 38-2203, as amended by section 3 of 2024 House
4702		-	Bill No. 2536, 38-2203a, 38-2212, as amended by section 8 of 2023
4703		-	Senate Bill No. 115, 38-2212, as amended by section 1 of 2024 House
4704		-	Bill No. 2628, 38-2243, 38-2243a, 65-536, 65-536a, 65-5808, 65- SENATE BILL No. 27—page 80
4705		-	5808a, 65-6129, as amended by section 21 of 2024 House Bill No.
4706		-	2760, 65-6129, as amended by section 62 of 2024 Senate Bill No. 491,
4707		-	75-5665a, 79-32,117, as amended by section 2 of 2024 Senate Bill No.
4708		-	360, 79-32,117, as amended by section 18 of 2024 Senate Bill No. 410,
4709		-	79-32,117, as amended by section 9 of 2024 House Bill No. 2465, 79-
4710		-	3606, as amended by section 5 of 2023 House Bill No. 2098, and 79-
4711		-	3606, as amended by section 11 of 2024 House Bill No. 2465, are
4712		-	hereby repealed.
4713		-	Sec. 17. On and after January 1, 2025, K.S.A. 9-508, as amended
4714		-	by section 11 of 2024 Senate Bill No. 491, 9-509, as amended by
4715		-	section 12 of 2024 Senate Bill No. 491, 9-513e, as amended by section
4716		-	13 of 2024 Senate Bill No. 491, 9-2201, as amended by section 16 of
4717		-	2024 Senate Bill No. 491, 9-2201, as amended by section 17 of 2024
4718		-	House Bill No. 2247, 9-2209, as amended by section 17 of 2024 Senate
4719		-	Bill No. 491, 9-2209, as amended by section 21 of 2024 House Bill No.
4720		-	2247, 16a-6-104, as amended by section 22 of 2024 Senate Bill No.
4721		-	491, 16a-6-104, as amended by section 104 of 2024 House Bill No.
4722		-	2247, are hereby repealed.
4723		-	Sec. 18. This act shall take effect and be in force from and after its
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	333	+	43 SB 27 5
	334	+	may be determined by the commissioner;
	335	+	(4) is financially responsible to exercise the rights and privileges
	336	+	under the license and has provided proof of financial responsibility as
	337	+	required in K.S.A. 40-5511, and amendments thereto;
	338	+	(5) has paid an application fee of not to exceed $100; and
	339	+	(6) maintains an office in the home state with public access during
	340	+	regular business hours or by reasonable appointment.
	341	+	(b) In addition to satisfying the requirements of subsection (a), an
	342	+	applicant shall:
	343	+	(1) Be at least 18 years of age; and
	344	+	(2) have successfully passed the public adjuster examination.
	345	+	(c) The commissioner may require any documents reasonably
	346	+	necessary to verify the information contained in the application.
	347	+	(d) (1) The commissioner may require a person applying for a public
	348	+	adjuster license to be fingerprinted and submit to a state and national
	349	+	criminal history record check or to submit to a background check, or both.
	350	+	(A) The fingerprints shall be used to identify the applicant and to
	351	+	determine whether the applicant has a record of criminal history in this
	352	+	state or another jurisdiction. The commissioner shall submit the
	353	+	fingerprints to the Kansas bureau of investigation and the federal bureau of
	354	+	investigation for a state and national criminal history record check. Local
	355	+	and state law enforcement officers and agencies shall assist the
	356	+	commissioner in the taking and processing of fingerprints of applicants
	357	+	and shall release all records of an applicant's arrests and convictions to the
	358	+	commissioner.
	359	+	(B) The commissioner may conduct or have a third party conduct a
	360	+	background check on a person applying for a public adjuster license.
	361	+	(2) Whenever the commissioner requires fingerprinting or a
	362	+	background check, or both, any associated costs shall be paid by the
	363	+	applicant.
	364	+	(3) The commissioner may use the information obtained from a
	365	+	background check, fingerprinting and the applicant's criminal history only
	366	+	for purposes of verifying the identity of the applicant and in the official
	367	+	determination of the fitness of the applicant to be issued a license as a
	368	+	public adjuster in accordance with the public adjusters licensing act.
	369	+	(e) Not later than December 1 of each year, the commissioner shall
	370	+	set and publish in the Kansas register the application fees required
	371	+	pursuant to subsection (a) for the next calendar year.
	372	+	Sec. 4. K.S.A. 40-4905, 40-4906 and 40-5505 are hereby repealed.
	373	+	Sec. 5. This act shall take effect and be in force from and after its
4724	374		publication in the statute book.
4725		-	I hereby certify that the above BILL originated in the
4726		-	SENATE, and passed that body
4727		-	__________________________
4728		-	SENATE adopted
4729		-	Conference Committee Report ________________
4730		-	_________________________
4731		-	President of the Senate.
4732		-	_________________________
4733		-	Secretary of the Senate.
4734		-
4735		-	Passed the HOUSE
4736		-	as amended _________________________
4737		-	HOUSE adopted
4738		-	Conference Committee Report ________________
4739		-	_________________________
4740		-	Speaker of the House.
4741		-	_________________________
4742		-	Chief Clerk of the House.
4743		-	APPROVED _____________________________
4744		-	_________________________
4745		-	Governor.
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